nep-ene New Economics Papers
on Energy Economics
Issue of 2016‒12‒04
fifty papers chosen by
Roger Fouquet
London School of Economics

  1. Access to Modern Energy: a Review of Barriers, Drivers and Impacts By Jacopo Bonan; Stefano Pareglio; Massimo Tavoni
  2. Kerosene Consumption in India: Welfare and Environmental Issues By K.S. Kavi Kumar; Brinda Viswanathan
  3. Delays in Connecting Firms to Electricity: What Matters? By Antonio Carvalho
  4. Fuel poverty and well-being: a consmer theory and stochastic fronteir approach By Rodríguez-Álvarez, A.; Orea, L.; Jamasb, T.
  5. La précarité énergétique et le logement en Région wallonne By Sandrine Meyer; Kevin Maréchal
  6. Policies and Deployment for Fuel Cell Electric Vehicles An Assessment of the Normandy Project By Julien Brunet; Jean-Pierre Ponssard
  7. Distributional Effects of Air Pollution from Electric Vehicle Adoption By Stephen P. Holland; Erin T. Mansur; Nicholas Z. Muller; Andrew J. Yates
  8. KEIHANNA : Keihanna Eco-City Next-Generation Energy and Social System. Projet SMARTMOB By Bruno Faivre d'Arcier; Yveline Lecler; Benoît Granier; Nicolas Leprêtre
  9. Lyon smart community. Projet SMARTMOB By Bruno Faivre d'Arcier; Yveline Lecler; Benoît Granier; Nicolas Leprêtre
  10. The Direct and Indirect Rebound Effects for Residential Heating in Switzerland By Cecile Hediger; Mehdi Farsi; Sylvain Weber
  11. Behavioral Study of Personalized Automated Demand Response in Workplaces By Takanori Ida; Naoya Motegi; Yoshiaki Ushifusa
  12. Retrieval Probabilities of Secondary Control Reserve within Systems with a High Share of Renewable Energies By Hanemann, Philipp; Bruckner, Thomas
  13. The effect of intermittent renewable supply on the forward premium in German electricity markets By Marius Paschen
  14. Going local: empowering cities to lead EU decarbonisation By Simone Tagliapietra; Georg Zachmann
  15. Influence of renewable energy sources on transmission networks in Central Europe By Karel Janda; Jan Malek; Lukas Recka
  16. Des éco-quartiers aux "smart cities" : quel rôle pour l'électro-mobilité ? Une comparaison France-Japon. Projet SMARTMOB. Rapport final By Bruno Faivre d'Arcier; Yveline Lecler; Benoît Granier; Nicolas Leprêtre
  17. Energy Supply Contracting Adoption: Empirical Evidence from the Market By Sandra Klinke
  18. Electricity network charging for flexibility By Pollitt, M. G.
  19. An analysis of the welfare and distributive implications of factors influencing household electricity consumption By Desiderio Romero-Jordán; Pablo Del Río; Cristina Peñasco
  20. Electricity Prices, Large-Scale Renewable Integration, and Policy Implications By Kyritsis, Evangelos; Andersson, Jonas; Serletis, Apostolos
  21. Technology Choice for Reducing NOx Emissions: An Empirical Study of Chinese Power Plants By Teng Ma; Kenji Takeuchi
  22. Erneuerbare Energien und Leitmärkte in der EU und Deutschland By Arthur Korus
  23. Consumers' preferences on the Swiss car market By Sylvain Weber
  24. Energy efficiency and rebound effect in European road freight transport By Llorca, M.; Jamasb, T.
  25. Fear of Fracking? The Impact of the Shale Gas Exploration on House Prices in Britain By Steve Gibbons; Stephan Heblich; Esther Lho; Christopher Timmins
  26. Le gaz de schiste peut-il participer à la réduction des émissions de C02 chinoises ? By Marie-Hélène Hubert
  27. Effects of oil price and global demand shocks on small island developing states By Alrick Campbell
  28. Informed Trading in Oil-Futures Market By Olivier Rousse; Benoît Sévi
  29. The Impact of Oil Prices on Macroeconomic Fundamentals, Monetary Policy and Stock Market for eight Middle East and North African Countries By Simohammed, Kamel; Benhabib, Abderrezzak; Maliki, Samir
  30. The political economy of carbon pricing: a panel analysis By Dolphin, G. G.; Pollitt, M. G.; Newbery, D. G.
  31. Pricing Carbon Consumption: A Review of an Emerging Trend By Clayton Munnings; William Acworth; Oliver Sartor; Yong-Gun Kim; Karsten Neuhoff
  32. Social Equity Concerns and Differentiated Environmental Taxes By Jan Abrell; Sebastian Rausch; Giacomo A. Schwarz
  33. Linking von Emissionshandelssystemen: Die EU als Vorreiter für einen globalen CO2-Markt? By Eva-Maria Mauer
  34. Auctions for Intraday -Trading Impacts on efficient power markets and secure system operation By Neuhoff, Karsten; Richstein, Jörn; May, Nils
  35. Environmental Regulation and Policy Design: The Impact of the Regulators Ecological Conscience on the Tax Setting Process By Jihad Elnaboulsi
  36. Public Climate Finance in Belgium By Lize Van Dyck; Kris Bachus
  37. Pour un financement conditionnel des projets risqués bas carbone By Guy Meunier; Jean-Pierre Ponssard
  38. The Tradeoffs between GHGs Emissions,Income Inequality and Productivity By Unmesh Patnaik; Santosh K. Sahu
  39. Car­bon foot­print de­com­pos­i­tion in MRIO mod­els: identi­fy­ing EU sup­ply-­chain hot spots and their struc­tural changes over time By Hanspeter WIELAND; Stefan GILJUM
  40. Energy Efficiency in Transition Economies: A Stochastic Frontier Approach By Antonio Carvalho
  41. Knowledge Creation between Integrated Assessment Models and Initiative-Based Learning - An Interdisciplinary Approach By Enrica De Cian; Johannes Buhl; Samuel Carrara; Michela Bevione; Silvia Monetti; Holger Berg
  42. Who’s Going Green? Decomposing the Change in Household Consumption Emissions 2006 – 2012 By Corey Allan; Suzi Kerr
  43. Examining the impact of financial development on the environmental Kuznets curve hypothesis By Halkos, George; Polemis, Michael
  44. Undermined climate policies : a study on the impact of regulatory and financial discrimination across heterogeneous firms in China By Tang, Weiqi; Meng, Bo; Wu, Libo; Liu, Yu
  45. Are China’s Climate Commitments in a Post-Paris Agreement Sufficiently Ambitious? By ZhongXiang Zhang
  46. Instruments juridiques et économiques de régulation de la pollution de l’air et de l’atmosphère By Marion Bary; Marie-Hélène Hubert
  47. On the Social Value of Disclosed Information and Environmental Regulation By Jihad Elnaboulsi; W Daher; Y Saglam
  48. Multilateral versus sequential negotiations over climate change By Alejandro Caparrós; Jean-Christophe Péreau
  49. Board expertise, networked boards and environmental performance By Aurelie Cecile Dominique Slechten; Swarnodeep Homroy
  50. Population Growth and Carbon Emissions By Casey, Gregory; Galor, Oded

  1. By: Jacopo Bonan (Fondazione Eni Enrico Mattei (FEEM)); Stefano Pareglio (Università Cattolica del Sacro Cuore and Fondazione Eni Enrico Mattei (FEEM)); Massimo Tavoni (Fondazione Eni Enrico Mattei (FEEM) and Politecnico di Milano)
    Abstract: Universal access to modern energy services, in terms of access to electricity and to modern cooking facilities, has been recognized as a fundamental challenge for development. Despite strong praise for action and the deployment of large-scale electrification programs and improved cookstove (ICS) distribution campaigns, few studies have shed light on the barriers to, the enablers of and the impacts of access to energy on development outcomes, using rigorous methodologies. This paper reviews this recent strand of research, trying to fill these gaps. We focus on the demand-side and household perspective. Our main outcomes of interest are electricity connection and ICS adoption for the analysis of barriers, time allocation, labour market outcomes and welfare for the impact analysis. We provide evidence of significant wellbeing impacts of electrification, and mixed evidence for cookstoves.
    Keywords: Impact Evaluation, Energy Poverty, Energy Access, Rural Electrification, Modern Cookstoves, Literature Review
    JEL: O1 O13 Q4 Q48
    Date: 2016–11
  2. By: K.S. Kavi Kumar (Madras School of Economics); Brinda Viswanathan (Madras School of Economics)
    Abstract: The adverse fiscal effects of fuel subsidies in developing countries like India are well documented. More recently, few studies have highlighted the fiscal, welfare and environmental effects of possible removal of subsidies on fuels in general. In the Indian context the leakages and errors of targeting, especially in case of kerosene supplied through public distribution system (PDS) have also been discussed widely in the literature. Using the National Sample Survey data for two recent rounds corresponding to the years 2009-10 and 2011-12, the present study explores the welfare and environmental implications of decline in the provision of kerosene through PDS. Focusing on kerosene used by the households for cooking purposes, the paper argues that kerosene has significant role in the household energy-mix and it helps in reducing the indoor air pollution. The study further highlights that the kerosene targeting has improved in recent years, that the subsidies have been progressive across geographical zones and sectors, and that economically and socially weaker groups of the society benefit more through implicit transfers associated with kerosene subsidies. While efforts to minimize and eliminate the diversion of kerosene to alternate markets including transport sector must continue, the phasing out of kerosene should be carried out gradually and cautiously to reduce adverse fallouts such as households moving down the energy ladder to use inferior fuels like dung and agricultural residue.
    Keywords: Fuel Subsidy; Welfare Effects; Indoor Air Pollution; Distributional Impact; IndiaClassification-JEL: D6; H2; Q5; R1
  3. By: Antonio Carvalho (Centre for Energy Economics Research and Policy, Heriot-Watt University)
    Abstract: This paper discusses institutional factors that influence delays in connecting businesses to electricity across the world. These delays lead to significant economic consequences at the early stages of commercial operations of a newly established firm. The level of economic development of a country can influence this indicator, but there are also conflicting results as quality of institutions increase, in a duality of increasing regulation and control of corruption. Aggregate national level data from World Bank Enterprise Surveys Project, Worldwide Governance Indicators and World Development Indicators is used to estimate and quantify these effects in a broad sample of 141 countries across the world. Panel data techniques are implemented to explore the fact that there are multiple surveys conducted over time, particularly in transition economies (mostly FSU economies). Analysis is mainly focused on this sub-sample of transition economies. There is clear evidence of a positive effect of increased control of corruption and the negative effect of increasing regulation, likely to be associated with extra steps to establish a connection. The latter result is also confirmed by alternative measures of regulation in the power sector in transition economies. There is no evidence that interconnected advances in several dimensions of governance leads to positive outcomes in this context.
    Keywords: Electricity Connection, Corruption, Governance, Regulation
    JEL: D73 L94 Q40
    Date: 2016–11
  4. By: Rodríguez-Álvarez, A.; Orea, L.; Jamasb, T.
    Abstract: Evidence and conventional wisdom suggest that general poverty has a negative effect on the well-being of individuals. However, the mechanisms through which this effect occurs are not well-understood. In this paper we analyse the effect of general and fuel poverty as well as the social dimension through peer comparison on the objective and perceived well-being of households. We develop a novel approach to analyse fuel poverty and well-being based on consumer theory. Individual preferences are modelled using indifference curves and a distance function where the preferences of individuals are affected by their poverty status. We use the survey data from the official Spanish Living Conditions Survey (SLCS) for 2013 which contains over 16,800 observations on household members. The results show that both general and fuel poverty influence the reference indifference curve but that individuals also compare themselves with their peers. The proposed model also allows us to corroborate how general and fuel poverty affect well-being and how effective policies can be designed to improve social welfare.
    Keywords: Distance functions, fuel poverty, general poverty, indifference curve, stochastic frontier analysis, subjective well-being.
    JEL: D12 I32 Q41
    Date: 2016–12–14
  5. By: Sandrine Meyer; Kevin Maréchal
    Abstract: a) Contexte: Dans le cadre de cette recherche, un premier document de type Policy Brief a fait le point sur le ‘split incentive’ entre les propriétaires-bailleurs et leurs locataires. Ce ‘split incentive’ est, en effet, un des obstacle majeur identifié pour expliquer le peu de rénovations énergétiques réalisées dans le secteur résidentiel locatif. De manière très simplifiée, le propriétaire doit investir alors que le locataire bénéficie des avantages en termes de confort accru et d’économies sur la facture énergétique. Sans «rééquilibrage» des avantages et inconvénients entre les deux parties, la décision d’investissement n’est généralement pas prise. Or, la rénovation énergétique des logements est un enjeu essentiel dans la politique de lutte contre le changement climatique, tant au niveau européen qu’au niveau wallon. En outre, elle a également été pointée comme une piste majeure pour lutter plus structurellement contre la précarité énergétique.Cette synthèse sur la précarité énergétique et le logement en Région wallonne a donc pour objectif de faire le point :- d’une part sur ce qu’est la précarité énergétique dans ses multiples dimensions, son étendue et sa gravité ;- et d’autre part sur le lien inhérent entre la précarité énergétique et les caractéristiques des logements, telles que leur qualité (énergétique), leur coût ou leur statut d’occupation. Nous verrons ainsi que le risque d’être en précarité énergétique est particulièrement élevé chez les locataires, qu’ils soient sur le marché résidentiel public ou privé. L’analyse du ‘split incentive’ y prend dès lors tout son sens et met en évidence les synergies potentielles entre des objectifs environnementaux (réduire les consommations d’énergie et les émissions de CO2 adjacentes) et socio-économiques (réduire le coût de la facture énergétique, accroître le confort et la qualité du logement, réduire les impacts néfastes sur la santé, etc.).b) Contenu de la synthèse: Dans un premier point, nous reposerons rapidement les bases de ce qu’est la précarité énergétique, quelles en sont les causes et les conséquences. Dans un second point, nous envisagerons comment estimer l’importance de la problématique et comment la mesurer, via notamment les indicateurs élaborés pour le Baromètre de la précarité énergétique. Le troisième point se focalisera plus spécifiquement sur la situation en Région wallonne. Il fera également le lien entre les résultats du baromètre de la précarité énergétique, la situation socio-économiques et les caractéristiques du marché du logement en Wallonie par comparaison avec les deux autres régions. Nous étayerons également l’intérêt porté par le projet Energ-Ethic pour les grands centres urbains (wallons) et ferons brièvement le lien avec la précarité énergétique dite ‘urbaine’. Le quatrième et dernier point évoquera la nécessité d’adopter une vision globale tant en termes de politique climatique et d’efficience énergétique, que de politique de lutte contre la précarité énergétique. C’est une condition indispensable à la minimisation des effets contreproductifs qu’une politique peut avoir sur l’autre si elle est envisagée séparément, mais également à la mise en commun de moyens pour soutenir des mesures potentiellement synergétiques, telle que la rénovation « énerg-éthique » de logements.
    Date: 2016–11–28
  6. By: Julien Brunet (Department of Economics, Ecole Polytechnique - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique); Jean-Pierre Ponssard (CNRS - Centre National de la Recherche Scientifique, Department of Economics, Ecole Polytechnique - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The paper provides a cost benefit analysis of one of the most prominent deployment project in France of fuel cell electric vehicles, taking place in Normandy. The project builds on the substitution of a diesel Renault Kangoo by an electric Renault Kangoo ZE with a fuel cell range extender for public fleets. The analysis points out potential weaknesses of the project as it is envisioned today using a decomposition of the value-chain. To achieve sustainability in 2025 a much stronger deployment should take place. This would allow for a sharp decrease in the total cost of ownership thanks to a close coordination between hydrogen production and its delivery through refilling stations to take advantage of the expected increasing volume of hydrogen consumption along the deployment path. This suggests that a high level in public funds at this early deployment phase can be critical for the success of the project.
    Keywords: fuel cell electric vehicles, cost benefit analysis, public policies, infrastructure
    Date: 2016–06
  7. By: Stephen P. Holland; Erin T. Mansur; Nicholas Z. Muller; Andrew J. Yates
    Abstract: We examine the distributional effects of changes in local air pollution from driving electric vehicles in the United States. We employ an econometric model to estimate power plant emissions and an integrated assessment model to value damages in air pollution from both electric and gasoline vehicles. Using the locations of currently registered electric vehicles, we find that people living in census block groups with median income greater than about $65,000 receive positive environmental benefits from these vehicles while those below this threshold receive negative environmental benefits. Asian and Hispanic residents receive positive environmental benefits, but White and Black residents receive negative environmental benefits. In multivariate analyses, environmental benefits are positively correlated with income and urban measures, conditional on racial composition. In addition, conditional on income and urbanization, separate regressions find environmental benefits to be positively related with Asian and Hispanic block-group population shares, negatively correlated with White share, and uncorrelated with Black share. Environmental benefits tend to be larger in states offering purchase subsidies. However, for these states, an increase in subsidy size is associated with a decrease in created environmental benefits.
    JEL: H23 Q4 Q5
    Date: 2016–11
  8. By: Bruno Faivre d'Arcier (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE] - CNRS - Centre National de la Recherche Scientifique); Yveline Lecler (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique); Benoît Granier (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique); Nicolas Leprêtre (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Ce rapport pointe les particularités de la smart community de Kyoto Keihanna. Il fait partie d’un corpus qui complètent le rapport final intitulé « Des éco-quartiers aux « smart cities » : quel rôle pour l’électro-mobilité ? Une comparaison France – Japon », réalisé dans le cadre du projet SMARTMOB par le LAET et l’IAO, en réponse à l’appel d’offre du GO6 du PREDIT IV (financement ADEME). Ce dernier est déposé sur les archives ouvertes : hs-01382640).
    Keywords: comportement de consommation des ménages,enjeux énergétiques,Projet SMARTMOB,gestion de l’énergie,smart cities,politique énergétique,solutions techniques,smart communities,électromobilité,implication des populations,acceptation sociale,politiques de mobilité durable,enjeux industriels,comparaison France-Japon,gestion de l’électricité,pilotage public/privé
    Date: 2016
  9. By: Bruno Faivre d'Arcier (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE] - CNRS - Centre National de la Recherche Scientifique); Yveline Lecler (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique); Benoît Granier (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique); Nicolas Leprêtre (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Ce rapport pointe les particularités de la smart community de Lyon. Il fait partie d’un corpus qui complètent le rapport final intitulé « Des éco-quartiers aux « smart cities » : quel rôle pour l’électro-mobilité ? Une comparaison France – Japon », réalisé dans le cadre du projet SMARTMOB par le LAET et l’IAO, en réponse à l’appel d’offre du GO6 du PREDIT IV (financement ADEME). Ce dernier est déposé sur les archives ouvertes : hs-01382640).
    Keywords: politique énergétique,gestion de l’énergie,gestion de l’électricité,pilotage public/privé,politiques de mobilité durable,comportement de consommation des ménages,implication des populations,Projet SMARTMOB,enjeux énergétiques,enjeux industriels,acceptation sociale,électromobilité,smart cities,smart communities,comparaison France-Japon,solutions techniques
    Date: 2016
  10. By: Cecile Hediger (University of Neuchatel, Institute of Economic Research, Rue Abram-Louis Breguet 2, 2000 Neuchtel, Switzerland.); Mehdi Farsi (University of Neuchatel, Institute of Economic Research, Rue Abram-Louis Breguet 2, 2000 Neuchtel, Switzerland.); Sylvain Weber (University of Neuchatel, Institute of Economic Research, Rue Abram-Louis Breguet 2, 2000 Neuchtel, Switzerland.)
    Abstract: Improvements in energy efficiency are seen as a key tool to decrease energy consumption, yet less is known about the reaction of household to such improvements. They could adapt (increase) their demand because the relative price of the energy service has diminished thanks to the efficiency gains. Focusing on the residential heating sector, we study how the households react to a gain in efficiency of their heating system. An increased demand for the heating service is the direct rebound effect, while the indirect rebound effect is the income effect on the consumption of all other goods. Both effects take back some of the energy savings initially expected. To estimate these rebound effects, we use a specific survey containing innovative choice experiments. We find that 10 to 15% of the expected energy savings are not realised in the space heating sector due to the direct rebound effect. Including the indirect rebound effects, it is one third of the potential savings which are lost. We also highlight the heterogeneity among people: some do not rebound at all, while others display a large rebound. We analyse this heterogeneity using socio-economic characteristics, finding that people with a low income, less educated, less environmentally friendly, and less satisfied of their heating comfort have the largest direct rebound effect.
    Keywords: Rebound effects, energy efficiency, residential heating.
    JEL: D12 Q41 Q47 R22
    Date: 2016–11
  11. By: Takanori Ida; Naoya Motegi; Yoshiaki Ushifusa
    Abstract: This study conducts a quasi-randomized controlled trial in a workplace with personalized lighting control and investigates the impact of automated demand responses on employees. To meet this objective, we set up four treatment groups: opt-in performance incentive, opt-in fixed incentive, opt-out performance incentive, and opt-out fixed incentive. Then, we estimate the average treatment effects (intent-to-treat and treatment-on-treated) of demand response. The results reveal a significant reduction in electricity consumption during peak hours for all four treatment groups.
    Keywords: Field Experiment, Behavioral Economics, Default Effect
    JEL: C23 C93 D03 Q41
    Date: 2016–11
  12. By: Hanemann, Philipp; Bruckner, Thomas
    Abstract: In this paper, empirically determined retrieval probabilities for control power are investigated. Since there is a continuous need for balancing unscheduled deviations of supply and demand, control power is of very high importance for the stability of the power system. Systems that are characterized by a high share of intermittent energy feed-in are especially effected. Since the market conditions have an influence on bidding behavior, those who are participants in the balancing market have an interest in gaining information about the activation of control power. Though the magnitudes have been changing over the last years, there are clear time dependent patterns.
    Keywords: control power,retrieval probabilities,frequency control,power system economics
    Date: 2016
  13. By: Marius Paschen (University of Oldenburg, Department of Economics)
    Abstract: Renewable energy such as wind or solar power currently contributes a large share to the total German electricity supply as a result of the German energy transition. This paper presents an empirical analysis of how power shocks resulting from intermittent renewable supply affect forward premiums in German electricity markets. We contribute to the existing literature by investigating determinants of forward premiums, thereby focusing on wind and on solar power. We find positive wind shock effects on forward premiums. This can be explained as a consequence of the merit order effect. The findings in this paper underline the need to introduce wind power futures at the EEX to reduce the risk mark-up for participants in forward markets.
    Keywords: Electricity Market, Forward Premiums, Intermittent Wind and Solar Power
    Date: 2016–11
  14. By: Simone Tagliapietra; Georg Zachmann
    Abstract: Four trends are reshaping the European energy system - decarbonisation, digitalisation and, as a result of the two, decentralisation and convergence. Based on strong public policies, decarbonisation is reshuffling the European energy mix, while innovation in digital technologies is enabling disruptive change in the way energy systems are operated. This enables the European energy system to become more decentralised with increasing interaction between services (electricity, heat, transport, data) that used to be largely separate. In this new context, cities are the key arenas of decarbonisation. However, European Union (EU) energy and climate governance is based on top-down policies that are not complemented by a solid bottom-up system that ensures consistency of EU, national and local measures and incentivises decarbonisation at city level. This Policy Contribution proposes better integration of top-down energy and climate policy mechanisms with new bottom-up incentives that aim to promote decarbonisation at city level. This mechanism can be set up in four steps. Step 1 - understand a city’s carbon footprint and create a baseline scenario. A participating city should start by carrying out an emissions inventory that would quantify the amount of greenhouse gases emitted from energy consumption on its territory during a specific year. This should identify the principal sources of emissions and therefore enable prioritisation of reduction measures. Step 2 - understand a city’s carbon handprint and create a reference scenario. With an emissions inventory in place, each city can identify the areas of its economy with the greatest decarbonisation potential, and can prioritise its decarbonisation policies accordingly. Step 3 - create a city Climate Plan. The baseline and reference scenarios would form the basis of comprehensive city Climate Plans. To ensure consistency of national and municipal policies, Climate Plans could be developed as a sub-component of member state National Energy and Climate Plans. Step 4 - track progress and allocate financial support. City progress reports on decarbonisation should be used by the EU to determine the eligibility of local governments for EU grants. Grants would be key to the success of this scheme. If EU money is given to a city to implement a project listed in its Climate Plan, it should be paid in in biennial tranches, conditional on positive progress reports. A grant-based system would give the EU some control over the effective implementation of cities’ decarbonisation projects. EU countries could use city progress reports to provide fiscal incentives to cities that implement in practice their Climate Plans. This premium system would make economic sense for member states considering that the better cities perform in terms of decarbonisation, the easier it will be to achieve national decarbonisation targets.
    Date: 2016–11
  15. By: Karel Janda; Jan Malek; Lukas Recka
    Abstract: This paper focuses on the influence of increased wind and solar power production on the transmission networks in Central Europe. To assess the exact impact on the transmission grid, the direct current load flow model ELMOD is employed. Two development scenarios for the year 2025 are evaluated on the basis of four representative weeks. The first scenario focuses on the effect of Energiewende on the transmission networks, the second one drops out nuclear phase-out and thus assesses isolated effect of increased feed-in. The results indicate that higher feeding of solar and wind power increases the exchange balance and total transport of electricity between transmission system operator areas as well as the average load of lines and volatility of flows. Solar power is identified as a key contributor to the volatility increase; wind power is identified as a key loop-flow contributor. Eventually, it is concluded that German nuclear phase-out does not significantly exacerbate mentioned problems.
    Keywords: Energiewende, RES, transmission networks, congestion, loop flows, ELMOD, Central Europe
    JEL: L94 Q21 Q48 C61
    Date: 2016–11
  16. By: Bruno Faivre d'Arcier (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - École Nationale des Travaux Publics de l'État [ENTPE] - CNRS - Centre National de la Recherche Scientifique); Yveline Lecler (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique); Benoît Granier (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique); Nicolas Leprêtre (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: L’origine de cette recherche réside dans le lancement en 2010 par le Ministère japonais de l’Economie, du Commerce et de l’Industrie (METI), d’un programme d’expérimentations dénommé « Energie de Nouvelle Génération et Systèmes Sociaux » (Next Generation Energy and Social Systems), incitant des collectivités locales à candidater, en lien avec des consortiums d’entreprises, pour mettre en œuvre des démonstrateurs visant à mieux gérer la production et la consommation d’énergie au travers des « réseaux électriques intelligents » (smart grid), dans le but notamment de réduire les gaz à effet de serre (GES). Ces démonstrateurs sont conçus comme une opportunité pour vérifier en situation réelle et à grande échelle l’efficacité de solutions techniques nouvelles, favorisant le développement des énergies renouvelables et la sobriété énergétique. Le programme comprend un volet « Systèmes de transport et de mobilité », introduisant ainsi un lien original avec un secteur émetteur de CO2 et consommateur d’énergie. Le focus mis sur l’électromobilité justifie en grande partie cette prise en compte, mais souligne également l’importance, y compris en France, de favoriser une plus grande intégration des approches entre le transport, l’urbanisme, l’énergie et l’environnement. L’appel à propositions du GO6 du PREDIT a mis l’accent sur les situations de crise et de ruptures, tout en observant les tendances émergentes (prospective sur le long terme). En proposant une veille et une analyse comparative France-Japon sur le développement des smart communities, cette recherche s’inscrit bien dans les termes de l’appel : cela concerne tout à la fois les questions énergétiques et environnementales, l’évolution potentielle des comportements (axe 1), et les politiques publiques d’innovation (axe 2). La recherche s’est en effet fixée comme objectif d’étudier les processus sous-jacents à la mise en œuvre d’expérimentations de grande taille mais correspondant aux attentes des villes, à la recherche d’un modèle de développement bas carbone, et aux entreprises, fortement attirées par le développement de technologies vertes, qui vont constituer un marché en rapide expansion dans le monde entier. Cette apparente conjonction d’intérêts ne doit cependant pas cacher que des stratégies multiples puissent être mises en œuvre par les nombreux acteurs impliqués. L’intérêt de cette expérimentation à grande échelle, sur des territoires diversifiés y compris à l’étranger et notamment à Lyon, réside à la fois dans ses composantes technologiques particulièrement variées, et dans les modalités d’implication des populations elles aussi très variées.
    Keywords: solutions techniques,politique énergétique,comparaison France-Japon,électromobilité,smart cities,comportement de consommation des ménages,gestion de l’énergie,Projet SMARTMOB,implication des populations,smart communities,gestion de l’électricité,enjeux industriels,acceptation sociale,politiques de mobilité durable,enjeux énergétiques,pilotage public/privé
    Date: 2016
  17. By: Sandra Klinke (University of Neuchatel, Institute of Economic Research, Rue Abram-Louis Breguet 2, 2000 Neuchatel, Switzerland.)
    Abstract: Energy supply contracting consisting in outsourcing energy-related services is considered as a promising tool to induce investment in energy efficiency and renewable technologies. Yet, energy contracting markets grow slowly and Switzerland is lagging behind. In order to assess whether the potentials are under-exploited, the determinants of energy supply contracting adoption are assessed using a random effects probit model on a dataset of 2,003 accepted and rejected contracts in Switzerland. Results show that the advantages of risk sharing and economies of scale brought by contracting as well as trust towards the supplier and the technology seem determining in the client's choice. The number of interlocutors involved, inducing higher expected adaptation costs, impacts negatively adoption. Less specific contracts involving residential or new buildings are more likely to be signed. The results imply that in order to fully exploit the potentials of contracting, a priority is to clarify to which extent owners can transfer the costs onto the tenants. Information campaigns are still needed to reduce the lack of confidence in energy renewable technologies. This study also provides the suppliers with guidelines to better exploit the market.
    Keywords: Energy service contracting, ESCo, vertigal integration, transaction costs economics, risk sharing, renewable energy.
    JEL: L24 Q40
    Date: 2016–11
  18. By: Pollitt, M. G.
    Abstract: This paper discusses the principles of electricity network charging in the light of increasing amounts of distributed generation and the potential for significant increases in electric vehicles or distributed electrical energy storage. We outline cost reflective pricing, traditional public service pricing, platform market pricing and customer-focussed business model pricing. We focus on the particular problem of how to recover network fixed costs and a recent example from Australia. We conclude that there are serious issues for regulators to address, but that potential solutions at the distribution level may already exist at the transmission level.
    Keywords: network charging methodology, platform market.
    JEL: L94
    Date: 2016–12–01
  19. By: Desiderio Romero-Jordán; Pablo Del Río; Cristina Peñasco
    Abstract: The deep economic crisis and the sharp rise in electricity prices have had a strong effect on electricity demand by Spanish households. This paper aims to analyse the responsiveness of household electricity demand and the welfare effects related to both factors in the 2006-2012 period. The results show that the electricity consumption of medium-high income households is particularly responsive to price increases, whereas that of medium-low income households is more responsive to changes in income. The retail electricity price increases and the economic crisis have led to generally lower and steeper U-shape price elasticities of demand and higher and steeper N-shape income elasticities of demand. The joint impact of those two factors on the welfare of lower-income households is higher in relative terms (i.e., as a share of household income) than for other income groups. These results suggest that the economic crisis and increases in retail electricity prices have had detrimental welfare effects, especially on the lower-income segment of the population. They should be taken into account when financing climate and energy policies through the electricity bill and provide a rationale to take such support, which pushes retail electricity price upwards, out of the electricity bill.
    Keywords: electricity demand, economic crisis, elasticities, welfare analysis
    JEL: D12 I31 Q41 R22
    Date: 2015–05
  20. By: Kyritsis, Evangelos (Dept. of Business and Management Science, Norwegian School of Economics); Andersson, Jonas (Dept. of Business and Management Science, Norwegian School of Economics); Serletis, Apostolos (Dept. of Economics, University of Calgary)
    Abstract: This paper investigates the effects of intermittent solar and wind power generation on electricity price formation in Germany. We use daily data from 2010 to 2015, a period with profound modifications in the German electricity market, the most notable being the rapid integration of photovoltaic and wind power sources, as well as the phasing out of nuclear energy. In the context of a GARCH-in-Mean model, we show that both solar and wind power Granger cause electricity prices, that solar power generation reduces the volatility of electricity prices by scaling down the use of peak-load power plants, and that wind power generation increases the volatility of electricity prices by challenging electricity market exibility.
    Keywords: Intermittency; Large-scale integration; Merit-order effect; Volatility; GARCH-in-Mean model
    JEL: C22 Q41 Q42
    Date: 2016–11–22
  21. By: Teng Ma (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University)
    Abstract: This study investigates the choices of denitration technology in the Chinese thermal power sector. Using a multinominal logit model of the choices among 1,135 boilers in thermal power plants operating in China in 2013, we analyze how the choices were inuenced by government policies, the stringency of national standards, and subsidies for using speci_c technology. The results are as follows. First, China's 12th Five-year Plan might make it more attractive for plants to choose the cheapest denitration technology among the three options examined in this study. Second, technology choices differed signi_cantly by region before the 12th Five-year Plan period. These differences have disappeared, perhaps due to the economic development across all regions of China. Third, electricity price subsidies offered to plants that use denitration equipment might affect their technology choice. These results suggests that plants might choose the cheapest technology available, in order to lower investment costs.
    Keywords: technology choice, NOx emissions, China, thermal power sector
    JEL: O33 Q53 Q55
    Date: 2016–11
  22. By: Arthur Korus (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: In 2007 the European Commission declared, with its Lead Market Initiative, an intention to expand the market for renewable energies into a lead market. Through targeted support measures on a supranational as well as on a national level, a lead market for renewable energies shall, or rather should, emerge in the European Union. Based upon various indicators, the present study analyzes the fields of wind energy and photovoltaic to see if they have developed into lead markets. It is shown that a lead market for wind power exists in Denmark. Thus, Denmark, where wind energy accounts for 39% of gross electricity generation, is the world leader in wind energy. Furthermore, it is shown that Germany can also be designated as a lead market for wind energy. However, planned amendments to the German Renewable Energy Act (EEG) endanger Germany’s position as a lead market in the field of wind power. The lead markets for photovoltaic power are arguably to be found outside of Europe. The analysis contained herein shows that the USA and China can be considered as lead markets for photovoltaic power. Moreover, in the present study the expenditures for Research & Development, as well as patent applications in the area of renewable energies are discussed. It is found that in this context, within Europe, Germany performs well.
    Keywords: Renewable energies, Wind energy, Photovoltaic, German Renewable Energy Act, Lead markets, Lead market initiative
    JEL: Q42 Q55 Q58
    Date: 2016–10
  23. By: Sylvain Weber (University of Neuchatel, Institute of Economic Research, Rue Abram-Louis Breguet 2, 2000 Neuchatel, Switzerland.)
    Abstract: This paper investigates how car sales in Switzerland react to several attributes of the vehicles. In particular, the market share reactions to engine fuel intensity, weight and horsepower are estimated. Our data include sales figures, list prices and technical characteristics for each model marketed over the period 2006-2015. We find that the market significantly rewards more efficient and powerful vehicles, while light cars are preferred to heavy ones. Our results also reveal an increasing willingness-to-pay for fuel efficiency. However, interaction effects between engine fuel intensity and power indicate a lower marginal valuation of fuel efficiency among powerful car purchasers, implying a low sensitivity to fuel efficiency among the consumers responsible for most polluting emissions. Also, this finding point to potential rebound effects, where consumers give up part of the expected fuel savings by purchasing more powerful vehicles.
    Keywords: Willingness-to-pay, Engine fuel efficiency, Car weight, Horsepower, Rebound effect.
    JEL: D12 Q41 R41
    Date: 2016–11
  24. By: Llorca, M.; Jamasb, T.
    Abstract: Energy efficiency has become a primary energy policy goal in Europe and many other countries and has conditioned the policies towards energy-intensive sectors such as road freight transport. However, energy efficiency improvements can lead to changes in the demand for energy services that offset some of the expected energy savings in the form of rebound effects. Consequently, forecasts of energy savings can be overstated. This paper analyses the energy efficiency and rebound effects for road freight transport in 15 European countries during the 1992-2012 period. We use a recent methodology to estimate an energy demand function using a stochastic frontier analysis approach and examine the influence of key features of rebound effect in the road freight transport sector. We obtain on average a fuel efficiency of 91% and a rebound effect of 18%. Our results indicate that the achieved energy efficiencies are retained to a large extent. We also find, among other results, that the rebound effect is higher in countries with higher fuel efficiency and better quality of logistics. Finally, a simulation analysis shows significant environmental externalities costs even in countries with lower rebound effect.
    Keywords: European road freight transport; stochastic frontier analysis; energy efficiency; rebound effect.
    JEL: C5 Q4 Q5 R4
    Date: 2016–12–01
  25. By: Steve Gibbons; Stephan Heblich; Esther Lho; Christopher Timmins
    Abstract: Shale gas has grown to become a major new source of energy in countries around the globe. While its importance for energy supply is well recognized, there has also been public concern over potential risks such as damage to buildings and contamination of water supplies caused by geological disturbance from the hydraulic fracturing (‘fracking’) extraction process. Although commercial development has not yet taken place in the UK, licenses for drilling were issued in 2008 implying potential future development. This paper examines whether public fears about fracking are evident in changes in house prices in areas that have been licensed for shale gas exploration. Our estimates suggest differentiated effects. Licensing did not affect house prices but fracking the first well in 2011, which caused two minor earthquakes, did. We find a 2.7-4.1 percent house price decrease in the area where the earthquakes occurred. Robustness checks confirm our findings.
    JEL: Q42 Q5 Q51
    Date: 2016–11
  26. By: Marie-Hélène Hubert (CREM, UMR CNRS 6211, University of Rennes 1, France)
    Abstract: To reduce CO2 emissions, Chinese government sets a target on the share of gas in its energy consumption. Shale gas can supply around 10% of energy consumption if its cost declines by one third, but it drives up domestic C02 emissions by 5%. A policy aiming at stabilizing coal consumption leads to large development of shale gas as well as a decrease in CO2 emissions of 41%. However, a tax on C02 emissions slows down shale gas development in favor of renewable energy.
    Keywords: Shale gas, Climate change, Energy markets
    JEL: Q33 Q38 Q42
    Date: 2016–11
  27. By: Alrick Campbell
    Abstract: I employ a global VAR framework for 25 SIDS using annual data over the period 1980 to 2015. A key innovation associated with this research is the use of remittance weights to capture the close financial linkages between SIDS and advanced economies such as the US. I find that oil price shocks do not have a statistically significant negative effect on economic growth in most individual countries and different regions. Economies that are oil-intensive perform better than their low-intensity counterparts, but economic growth is likely to be greater if economies transition towards a more diversified energy supply mix. In terms of a negative demand shock to US GDP, output in SIDS decline more for those regions that have close economic ties with the US and are within its geographical proximity. From a policy standpoint, these results highlight the importance of gearing policy towards energy diversification and designing outward-oriented economic policies to guard against future oil price shocks.
    Keywords: Global VAR (GVAR), Impulse Responses, Oil prices, Small Island Developing States
    Date: 2016–11
  28. By: Olivier Rousse (Université Grenoble Alpes); Benoît Sévi (Université de Nantes)
    Abstract: The weekly release of the U.S. inventory level by the DOE-EIA is known as the market mover in the U.S. oil futures market and to be a significant piece of information for all world oil markets in which the WTI is a price benchmark. We uncover suspicious trading patterns in the WTI futures markets in days when the inventory level is released that are higher than economists’ forecasts: there are significantly more orders initiated by buyers in the two hours preceding the official release of the inventory level. We also show a clear drop in the average price of -0.25% ahead of the news release. This is consistent with informed trading. We also provide evidence of an asymmetric response of the oil price to the news, and highlight an over-reaction that is partly compensated in the hours following the announcement.
    Keywords: Insider Trading, WTI Crude Oil Futures, Intraday Data, Inventory Release
    JEL: G13 G14 Q4
    Date: 2016–11
  29. By: Simohammed, Kamel; Benhabib, Abderrezzak; Maliki, Samir
    Abstract: The objective of this study is to investigate the impact of oil prices on macroeconomic fundamentals as well as monetary policy and stock market for eight oil-exporting and non-oil exports countries in the Middle East and North African region,namely Algeria,Egypt,Iran,Kuwait,Morocco, Saudi Arabia,Tunisia and Turkey. Using quarterly data for the period 1994Q4-2015Q2,with a Panel-ARDL, we may conclude that there are short run dynamic cross section relationships between,first,oil prices and macroeconomic variables such as growth rate and consumer price index, second, oil prices and money market rate and, third, market capitalization and oil prices. In the long run, dependent variables such as consumer price index and market stock exhibit a cointegration relationship with oil prices. However, no cointegration relationships could be established between oil price variations, monetary policy and growth rate. In this context, we apply a multivariate VAR model to examine responses of all variables to oil price shocks. Results show a relatively high elastic response of economic growth in oil-exporting countries except for Kuwait and, conversely, in oil-importing economics, GDP response to oil prices appear reasonably stable, close to zero. Similarly, the same results can be captured for each oil-importing and exporting country as far as the negative sign exhibited by market response to oil price during the first period caused by financial crisis contagion. The next macroeconomic variable, CPI, shows a positive response to oil.In addition, oil prices appear to have a negligible response on money market rates in the Middle East and North Africa except for Turkey and Egypt.
    Keywords: Oil shocks; Economic growth; Economy; Monetary policy; Stock market; Panel ARDL
    JEL: E00 E52
    Date: 2015–09
  30. By: Dolphin, G. G.; Pollitt, M. G.; Newbery, D. G.
    Abstract: In virtually all countries that explicitly price carbon, its effective price, i.e. the emissions-weighted price, remains low. Our analysis focuses on the political economy of this effective price, using data on an international panel of jurisdictions over the period 1990-2012. First, we examine the decision to introduce a carbon pricing policy. Second, we shed light on its stringency. Results show that both the odds of the implementation and the stringency of the carbon pricing policy are negatively affected by the share of electricity coming from coal and the relative share of industry in the economy. The results also broadly support an environmental Kuznets curve hypothesis as gross domestic product increases both the odds of the implementation and the policy stringency. Institutional and political factors are found to influence the implementation but not the stringency of carbon pricing schemes.
    Keywords: carbon pricing, panel analysis, political economy, electricity sector
    JEL: H23 Q58
    Date: 2016–12–14
  31. By: Clayton Munnings; William Acworth; Oliver Sartor; Yong-Gun Kim; Karsten Neuhoff
    Abstract: Nearly every carbon price regulates the production of carbon emissions, typically at midstream points of compliance, such as a power plant. Over the last six years, however, policymakers in Australia, California, China, Japan, and Korea implemented carbon prices that regulate the consumption of carbon emissions, where points of compliance are farther downstream, such as distributors or final consumers. This article aims to describe the design of these prices on carbon consumption, understand and explain the motivations of policymakers who have implemented them, and identify insights for policymakers considering whether to price carbon consumption. We find a clear trend of policymakers layering prices on carbon consumption on top of prices on carbon production in an effort to improve economic efficiency by facilitating additional downstream abatement. In these cases, prices on carbon consumption are used to overcome a shortcoming in the price on carbon production: incomplete pass-through of the carbon price from producers to consumers. We also find that some policymakers implement prices on carbon in an effort to reduce emissions leakage or because large producers of carbon are not within jurisdiction. Since policymakers are starting to view prices on carbon consumption as a strategy to improve economic efficiency and reduce emissions leakage in a way that is compatible with local and international law, we expect jurisdictions will increasingly implement and rely upon them.
    Keywords: Carbon pricing, Consumption based policy, Review
    JEL: D12 H23 Q54
    Date: 2016
  32. By: Jan Abrell (ETH Zurich, Switzerland); Sebastian Rausch (ETH Zurich, Switzerland); Giacomo A. Schwarz (ETH Zurich, Switzerland)
    Abstract: This paper examines pollution tax differentiation across industries in light of social equity concerns using theoretical and numerical general equilibrium analyses in an optimal tax framework. We characterize the drivers for non-uniform optimal taxes emanating from the interaction of household heterogeneity with social preferences. Quantitatively assessing the case of price-based CO2 emissions control in the U.S. economy, we find that optimal carbon taxes differ largely across industries, even when social inequality aversion is low. Our results are robust with respect to the stringency of the environmental target, non-optimal redistribution schemes, and parametric uncertainty in firms’ and households’ equilibrium tax responses.
    Keywords: Differentiated environmental taxes, Carbon pricing, Industries, Heterogeneous households, Social inequality, Optimal taxation, General equilibrium
    JEL: H23 Q52 C68
    Date: 2016–11
  33. By: Eva-Maria Mauer (Europa-Universität Viadrina)
    Abstract: Abstract This paper examines whether the EU can act as a forerunner in building an international carbon market trough linking with other emission trading systems. Therefore, the principles of emission trading and the advantages of linking are described and analyzed. The main advantages of linking are that emission reduction can be achieved at lower cost and that the risk of carbon leakage is reduced. This in turn might allow countries to set more stringent climate targets. From that perspective, the preconditions for linking emissions trading systems are analyzed in order to identify those design features that should be aligned prior to linking. Among these are the stringency and the type of the target as well as the use of credits from international offset programs. Taking these preconditions into account, the compatibility of the EU’s system with different emission trading systems is considered. Because of diverging design features, the current linking options of the EU are rather limited. Nevertheless, since many emission trading systems around the world are just in the making, the EU should engage with these countries from an early stage on in order to accompany the design process of these emission trading systems such that linking agreements become possible in the future. Lastly, linking as part of the international climate architecture is analyzed. Therefore, the latest climate treaty that was agreed on in Paris in December 2015 is examined. Indeed, the Paris Agreement encourages bilateral or plurilateral cooperation between states in order to fulfill their reduction requirements. This includes the trading of emission reduction units across borders. At the same time, the Paris Agreement provides for guidelines that are established in the framework of the UN in order to ensure the environmental integrity of such cross-border transfers. Zusammenfassung In dieser Arbeit wird untersucht, inwiefern die EU bei der Bildung eines globalen CO2- Marktes durch die Verknüpfung mit anderen Emissionshandelssystemen (Linking) als Vorreiter agieren kann. Hierfür werden die Prinzipien des Emissionshandels und die Vorteile von Linking beschrieben und analysiert. Die Verknüpfung von Emissionshandelssystemen wird als Möglichkeit gesehen, striktere Klimaziele zu erreichen, weil hierdurch einerseits Emissionsreduktionen zu geringeren Kosten realisiert werden können und andererseits das Risiko für CO2-Leakage reduziert wird. Weiterhin werden die Bedingungen analysiert, die erfüllt sein müssen, damit Emissionshandelssysteme miteinander verknüpft werden können. Dabei werden die Designmerkmale herausgearbeitet, die angeglichen werden sollten, bevor es zu Linking kommt. Zu diesen Merkmalen gehören sowohl die Höhe und die Art des Reduktionsziels als auch die Nutzung von Zertifikaten aus internationalen Ausgleichsprogrammen. Bezüglich dieser Voraussetzungen wird die Kompatibilität des EU- Systems mit anderen Emissionshandelssystemen untersucht. Aufgrund großer Unterschiede im System-Design sind die derzeitigen Linking-Optionen der EU jedoch stark begrenzt. Da viele Emissionshandelssysteme in anderen Teilen der Welt noch in der Entwicklungsphase sind, sollte die EU dennoch möglichst früh mit diesen kooperieren, um so den Designprozess dieser Systeme zu begleiten und langfristig Linking-Abkommen zu ermöglichen. Des Weiteren wird die Rolle von Linking als Teil der internationalen Klimaschutzbemühungen analysiert. Dabei ist insbesondere das Klimaabkommen, das im Dezember 2015 in Paris abgeschlossen wurde, von Interesse. In der Tat fördert das Abkommen bilaterale und plurilaterale Kooperationen zwischen Staaten, die auf diese Weise ihre Reduktionsverpflichtungen erfüllen können. Dies beinhaltet auch den grenzübergreifenden Handel von Emissionsreduktionseinheiten. Gleichzeitig stellt das Paris-Abkommen Richtlinien bereit, die die Umweltintegrität solcher internationalen Transfers sicherstellen sollen.
    Keywords: environmental economics, emissions trading, linking, international climate policy, Umweltökonomie, Emissionshandel, Linking, Internationale Klimapolitik
    Date: 2016–11
  34. By: Neuhoff, Karsten; Richstein, Jörn; May, Nils
    Date: 2016
  35. By: Jihad Elnaboulsi (CRESE - Centre de REcherches sur les Stratégies Economiques - UFC - UFC - Université de Franche-Comté, UBFC - Université Bourgogne Franche-Comté)
    Abstract: This paper presents an analysis of environmental policy in imperfectly competitive markets. We investigate how environmental taxes should be optimally levied in a precommitment policy game and their e§ects on social welfare. The paper also examines the potential impacts of the regulatorís environmental conscience on policy setting. We start the analysis with a benchmark model where all players are environmentally dirty in the marketplace. We then extend the model to the case in which the market is composed of a mix of dirty and clean strategic players. We show that, in both cases, the regulator must necessarily trade o§ between regulation of environmental quality and the industry production ine¢ ciency problems. Furthermore, the results show how higher levels of concern for environmental issues outweigh the under taxation problem that arises in order to avoid further reductions in welfare. Finally, we show that the existence of clean players produces positive social externalities. Under an ex ante environmental policy game, higher social welfare outcomes are possible.
    Keywords: Environmental Policy, Emissions Tax, Environmental Conscience, Social Welfare, Strategic Behavior, Oligopoly Competition
    Date: 2015–09–01
  36. By: Lize Van Dyck (HIVA, KU Leuven); Kris Bachus (HIVA, KU Leuven)
    Abstract: This research paper is the first compresensive effort to get a full overview of public climate finance in Belgium. Up to now, reports to international institutions such as UNFCCC have been incomplete, because not all funding bodies’ and agencies’ flows were included. For the weighting of the climate relevance, two methodologies are used side-by-side: the 0-40-100 used by most countries and the EU, and the ‘DGD-method’ which is a method sui generis developed by the Belgian federal development administration. All the partners in the Belgian public climate finance landscape and their activities are first explained, and afterwards an overview is provided of the climate flows for the years 2013 and 2014. Except for two public organisations, the figures for all Belgian stakeholders could be retrieved. This paper is an important step forward towards full coverage for Belgian public climate financereporting efforts in the near future.
    Keywords: climate finance, public climate finance, climate flows, public climate flows, development, climate change, climate change mitigation, climate change adaptation
    JEL: F35 Q56
    Date: 2016–08
  37. By: Guy Meunier (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique, Department of Economics, Ecole Polytechnique - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique); Jean-Pierre Ponssard (CNRS - Centre National de la Recherche Scientifique, Department of Economics, Ecole Polytechnique - Polytechnique - X - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Une critique récurrente des subventions aux technologies propres (énergies renouvelables, solaire, mécanismes de développement propre, voiture électrique, …) est l’existence d’effets d’aubaine : des investissements bénéficient de subventions dont ils n’ont pas besoin pour être rentables. Cette note formalise ce type de situation comme la sélection d’un portefeuille de projets par l’Etat dans un contexte d’asymétrie d’information. Il montre qu’une forme de garantie du financement, avec remboursement en cas de succès, permet de limiter les effets d’aubaines et les dépenses publiques tout en maximisant le bénéfice social en termes de réduction des émissions. La pertinence du mécanisme proposé est illustrée dans le cadre de subventions pour le déploiement des infrastructures pour les véhicules à hydrogène.
    Keywords: technologies vertes, politiques publiques, avance remboursable, information asymétrique
    Date: 2016–09
  38. By: Unmesh Patnaik (Madras School of Economics); Santosh K. Sahu (Madras School of Economics)
    Abstract: Rising emission of greenhouse gasses (GHGs) and growing economic inequalities have emerged as key challenges for policymakers over the past two decades and the problems are likely to intensify in the foreseeable future. Numerous studies in the past have examined the relationship between these and implications on growth and equity of nations. Contributing to this literature, the present paper examines cross country differences in historical GHGs emission from 1990 to 2014 and analyzes the relationship between income inequality and emission levels and productivity. Additionally, we also inspect the role of energy use, equity and emission intensity. In doing so, data from the World Development Indicator is used for clusters of countries while also estimating sector specific trends in GHGs emissions for priority sectors such as agriculture and industry. The hypothesis is to validate whether economic growth improves the trade off with equity, and vice-versa. With the Paris Agreement (COP21) making veiled reference to the principle of common but differentiated responsibilities (CBDR) in tackling global warming the findings from the analysis would also signal towards efficacy of the targets set under the intended nationally determined contributions (INDCs)
    Keywords: GHGs emission, income inequality, TFP Classification-JEL: D62, D63, O13, O14, C33
  39. By: Hanspeter WIELAND (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria); Stefan GILJUM (Vienna University of Economics and Business, Welthandelsplatz 1, 1020 Vienna, Austria)
    Abstract: Politics' demand for informative consumption-based emission assessments based on multi-regional input output (MRIO) databases is steadily increasing. Based on the MRIO database EXIOBASE 3, we exemplify the utility of a range of analytical tools and discus their potential insights for consumption-based policies. The analysis decomposes the overall EU carbon footprint into product groups as well as into emitting regions. Subsequently, we illustrate the potential of applying production layer decomposition (PLD) and structural path analysis (SPA) for the assessment of global supply-chains related to the EU carbon footprint and their structural changes over time. We close with some policy ecommendations on reducing carbon footprint hot spots.
    Keywords: Carbon footprint, multi-regional input-output analysis, analytical tools, supply chains, production layer decomposition, structural path analysis
    Date: 2016–11
  40. By: Antonio Carvalho (Centre for Energy Economics Research and Policy, Heriot-Watt University)
    Abstract: The paper outlines and estimates a measure of underlying efficiency in electricity consumption for an unbalanced panel of 28 transition economies and 5 Western European OECD countries in the period 1994-2007, by estimating a Bayesian Generalized True Random Effects (GTRE) stochastic frontier model that estimates both persistent and transient inefficiency. The properties of alternative GTRE estimation methods in small samples are explored to guide the estimation strategy. The paper analyses the behaviour of underlying efficiency in electricity consumption in these economies after accounting for time-invariant technological differences. After outlining the specific characteristics of the transition economies and their heterogeneous structural economic changes, an aggregate electricity demand function is estimated to obtain efficiency scores that give new insights for transition economies than a simple analysis of energy intensity. There is some evidence of convergence between the CIS countries and a block of Eastern European and selected OECD countries, although other country groups do not follow this tendency, such as the Balkans.
    Keywords: Electricity Consumption, Transition Economies, Energy Efficiency, Stochastic Frontier
    JEL: C23 Q49 P20
    Date: 2016–11
  41. By: Enrica De Cian (FEEM and CMCC); Johannes Buhl (Wuppertal Institute for Climate, Environment, Energy); Samuel Carrara (FEEM and CMCC); Michela Bevione (FEEM and CMCC); Silvia Monetti (Wuppertal Institute for Climate, Environment, Energy); Holger Berg (Wuppertal Institute for Climate, Environment, Energy)
    Abstract: This paper explores the opportunities for integrating Initiative Based Learning (IBL) and Integrated Assessment Models (IAMs) in order to improve our understanding of learning in the context of societal transition pathways, and more specifically by focusing on solar PV as an energy transition technology. Our analysis shows that IAMs and IBL conceptualize learning in a very different way, and the two approaches have major structural differences with respect to the geographical as well as the temporal scale of analysis. This is also due to the different goals of the two methodologies. The aim of IAM is to develop long-term energy and technology scenarios for the next thirty to eighty years, and to describe learning processes mostly to account for future potential improvements in technologies, while IBL focuses on understanding the configuration of actors in specific institutional settings that legitimize and support specific technologies and ultimately lead to dynamics of social learning. Although ambitious forms of integration between IAMs and IBL are not feasible today, the two approaches can be used in parallel and lead to mutual enrichment via a process that we label a two-way recursive collaboration.
    Keywords: Social Learning, Innovation Diffusion, Technology Adoption, Integrated Assessment, Case Study, Transition Research, Initiative-based Learning, Solar PV Learning Curves
    JEL: O31 O33 O35 Q42
    Date: 2016–11
  42. By: Corey Allan (Motu Economic and Public Policy Research); Suzi Kerr (Motu Economic and Public Policy Research)
    Abstract: We update the analysis of Allan et al. (2015) and re-examine whether New Zealand households have become greener consumers using newly available data. We combine input-output data from 2006 and 2012 with detailed data on household consumption from the 2006 and 2012 Household Economic Surveys (HES) to calculate the greenhouse gas emissions embodied in household consumption. We confirm many of our previous findings; that emissions increase less than proportionately with expenditure, and that there is significant variation in expenditure elasticities across consumption categories. We test for a change in household emissions over time and decompose this change into improvements in production efficiency and changes in households. We find that average household emissions fell by 11% between 2006 and 2012. We attribute 1.7 percentage points of this decrease to changes in households, with the remaining 9.3 percentage points from changes in emissions intensities. The majority of the change due to households is a result of changes in household behaviour rather than a change in household characteristics. Emissions from household energy fell markedly between 2006 and 2012, driven by a reduction in the emissions intensity of electricity and a decrease in household electricity consumption.
    Keywords: Climate change; greenhouse gas emissions; household behaviour; consumption; input–output model
    JEL: Q56 Q57 D12 Q54 D57
    Date: 2016–11
  43. By: Halkos, George; Polemis, Michael
    Abstract: In this study, building a simple model that incorporates static and dynamic elements, the relationship of financial development and economic growth on the environmental degradation is investigated together with the validation of the Environmental Kuznets Curve (EKC) hypothesis. Our analysis is based on an unbalanced panel data set covering the OECD countries over the period 1970-2014. Our approach strongly accounts for the presence of cross-sectional dependence between the sample variables and utilizes second generation panel unit root tests in order to investigate possible cointegration relationships. The empirical findings do indicate that local (NOX per capita emissions) and global (CO2 per capita emissions) pollutants redefine the EKC hypothesis when we account for the presence of financial development indicators. Specifically, in the case of global pollution an N-shape relationship is evident both in static and dynamic framework with a very slow adjustment, whereas a monotonically decreasing relationship is found in the case of local pollutants with a much quicker dynamic adjustment. Lastly, we argue that policy makers and government officials have to cultivate investments in network industries (energy, telecommunications, transportation) by promoting cutting edge research and development financial projects and cost effective mitigation methods.
    Keywords: Environmental Kuznets Curve; Cross-sectional dependence; Financial development; Panel data.
    JEL: C33 G20 Q4 Q43 Q53 Q54 Q56
    Date: 2016–12–01
  44. By: Tang, Weiqi; Meng, Bo; Wu, Libo; Liu, Yu
    Abstract: Firms in China within the same industry but with different ownership and size have very different production functions and can face very different emission regulations and financial conditions. This fact has largely been ignored in most of the existing literature on climate change. Using a newly augmented Chinese input–output table in which information about firm size and ownership are explicitly reported, this paper employs a dynamic computable general equilibrium (CGE) model to analyze the impact of alternative climate policy designs with respect to regulation and financial conditions on heterogeneous firms. The simulation results indicate that with a business-as-usual regulatory structure, the effectiveness and economic efficiency of climate policies is significantly undermined. Expanding regulation to cover additional firms has a first-order effect of improving efficiency. However, over-investment in energy technologies in certain firms may decrease the overall efficiency of investments and dampen long-term economic growth by competing with other fixed-capital investments for financial resources. Therefore, a market-oriented arrangement for sharing emission reduction burden and a mechanism for allocating green investment is crucial for China to achieve a more ambitious emission target in the long run.
    Keywords: Environmental policy, Climatic change, Business enterprises, Econometric model, Emissions, CGE, Firm heterogeneity, SME, ETS, Chinese economy
    JEL: C67 C68 O16 Q56
    Date: 2016–11
  45. By: ZhongXiang Zhang (College of Management and Economics, Tianjin University)
    Abstract: In international climate change negotiations, China’s role is an issue of perennial concern. In particular, the lack of quantitative, absolute emissions commitments from China has been the focus. In line with changing domestic and international contexts, China is recalibrating its stance and strategy. Its participation in international climate change negotiations has evolved from playing a peripheral role to gradually moving to the centre. This article examines China’s stance and role in international climate change negotiations from a historical perspective. In so doing, the article discusses the evolution of international climate negotiations and China’s stance in the lead-up to and at the Paris conference. With Paris behind us, the focus is now turning to the implementation of the Paris Agreement. The article discusses post-Paris issues in the international context and in particular in China’s context. These affect the post Paris negotiations and hold the key to achieving desired outcomes.
    Keywords: International Climate Negotiations, Copenhagen Accord, Paris Agreement, China
    JEL: Q01 Q5 Q58
    Date: 2016–11
  46. By: Marion Bary (IODE, UMR CNRS 6262, University of Rennes 1, France); Marie-Hélène Hubert (CREM, UMR CNRS 6211, University of Rennes 1, France)
    Abstract: The main contribution of this paper is to jointly present the economic and legal instruments. The first survey examines the different evaluation methods in environmental economics which are essential since the admission of the pure ecological damage in private law on the one hand, and to evaluate the effectiveness of economic policies, on the other hand. Evaluation method is a difficult task since a range of criteria exists. The second survey investigates the evolution of private law which places air pollution reduction obligations on economic agents and which enforces private economic agents to make reparation for injury. Although already a significant breakthrough to protect the environment, these new devices are not as efficient as expected.
    Date: 2016–11
  47. By: Jihad Elnaboulsi (CRESE - Centre de REcherches sur les Stratégies Economiques - UFC - UFC - Université de Franche-Comté, UBFC - Université Bourgogne Franche-Comté); W Daher (Gulf University for Science and Technology (GUST) - Department of Mathematics and Natural Sciences); Y Saglam (Victoria University of Wellington - Victoria University of Wellington)
    Abstract: This paper presents an analysis of environmental policy in imperfectly competitive market with private information. We examine how environmental taxes should be optimally levied when the regulator faces asymmetric information about production and abatement costs in an irreversible observable policy commitment game. Under our setting, the paper investigates how information disclosure can improve the efficiency of the tax setting process and may offer an efficient complement to conventional regulatory approaches. From a policy perspective, our findings suggest that access to publicly disclosed information improves the ability of the regulator to levy Örmsí specific environmental taxes. Despite its advantages, however, informational disclosure may harm the environmental policy it purports to enhance since it facilitates collusive behavior. We show that information sharing may occur and thus leads to a superior outcome in terms of industry output and emissions. Disclosure may undermine market performance and environmental policy.
    Keywords: Environmental Regulation, Emissions Taxes, Collusion, Disclosed Information, Private Information, Information Sharing
    Date: 2015–10–01
  48. By: Alejandro Caparrós; Jean-Christophe Péreau
    Abstract: We discuss a model of gradual coalition formation with positive externalities in which a leading country endogenously decides whether to negotiate multilaterally or sequentially over climate change. We show that the leader may choose a sequential path, and that the choice is determined by the convexity of the TU-game and the free-rider payo§s of the followers. Except in a few clearly deÖned cases, the outcome of the negotiation process is always the grand coalition, although the process may need some time. This holds for the standard IEA game with heterogeneous players even if the grand coalition is not stable in a multilateral context. We also analyze the role of a facilitating agency. The agency has an incentive to speed up intra-stage negotiations and to extend the period between negotiation stages in a sequential process.
    Keywords: multilateral bargaining, endogenous coalition formation, international negotiations, mediator, international environmental agreements
    Date: 2015–11
  49. By: Aurelie Cecile Dominique Slechten; Swarnodeep Homroy
    Abstract: We analyze the role of board expertise in environmental issues (measured by the presence of non-executive directors with previous experience in environmental issues, EEDs) and director networks on GHG emissions. Using emission data of FTSE 350 firms, we show that the presence of EEDs on the board reduces GHG emissions. Also boards with better networked directors have better environmental performance. These associations are robust to alternative explanations - endogenous matching of firms and directors, general technical expertise of the board, and pro-active stacking in board composition. The results are consistent with the view that director skills and information spillovers through director networks add value.
    Keywords: Director Expertise, Director Networks, Emissions, Environmental Performance
    JEL: G34 G39 L14 L25 Q50
    Date: 2016
  50. By: Casey, Gregory; Galor, Oded
    Abstract: We provide evidence that lower fertility can simultaneously increase income per capita and lower carbon emissions, eliminating a trade-off central to most policies aimed at slowing global climate change. We estimate the effect of lower fertility on carbon emissions accounting for the fact that changes in fertility patterns affect carbon emissions through three channels: total population, the age structure of the population, and economic output. Our analysis proceeds in two steps. First, we estimate a version of the STIRPAT equation on an unbalanced yearly panel of cross-country data from 1950-2010. We demonstrate that the coefficient on population is nearly seven times larger than the coefficient on income per capita and that this difference is statistically significant. Thus, regression results imply that 1% slower population growth could be accompanied by an increase in income per capita of nearly 7% while still lowering carbon emissions. In the second part of our analysis, we use a recently constructed economic-demographic model of Nigeria to estimate the effect of lower fertility on carbon emissions accounting for the impacts of fertility on population growth, population age structure, and income per capita. The model was constructed to estimate the effect of lower fertility on economic growth, making it well-suited for this application. We find that by 2100 C.E., moving from the medium to the low variant of the UN fertility projection leads to 35% lower yearly emissions and 15% higher income per capita. These results strongly suggest that population policies should be a part of the approach to combating global climate change.
    JEL: J11 O40
    Date: 2016–11

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