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on Energy Economics |
| By: | Michelsen, Claus; El-Shagi, Makram; Rosenschon, Sebastian |
| Abstract: | The impact of environmental regulation on market diffusion and market entry of "green'', innovative buildings in the housing market is studied using a unique data set of German residential buildings. Particularly, we analyze how energy efficiency regulation, in terms of minimum standards, affects energy-requirements in newly constructed buildings over time in both, the high and low quality housing segment. The data we use consists of a large sample of German apartment houses built between 1950 and 2005. We develop a new measure for regulation intensity and apply a panel-error-correction regression model to energy requirements of low and high quality housing. Our findings suggest that regulation is effective and significantly impacts technology adoption in low quality housing. Moreover, we find that regulation indirectly also positively affects energy efficiency in the high quality housing markets. This suggests that tighter building codes have a substantial impact on both, the entry and the diffusion of ``green'' buildings in the housing market. |
| JEL: | D20 Q40 R30 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145534&r=ene |
| By: | Kempa, Karol; Haas, Christian |
| Abstract: | This paper uses a theoretical model with Directed Technical Change to analyse the observed heterogeneous energy intensity developments. Based on the empirical evidence on the underlying drivers of energy intensity developments, we decompose changes in aggregate energy intensity into structural changes in the economy (Sector Effect) and within-sector energy efficiency improvements (Efficiency Effect). We analyse how energy price growth and the relative productivity of both sectors affect the direction of research and hence the relative importance of the aforementioned two effects. The relative importance of these effects is determined by energy price growth and relative sector productivity that drive the direction of research. In economies that are relatively more advanced in sectors with low energy intensities, the Sector Effect dominates energy intensity dynamics given no or moderate energy price growth. In contrast, the Efficiency Effect dominates energy intensity developments in economies with a high relative technological level within their energy-intensive industries if moderate energy price growth is above a certain threshold. We further show that temporal energy price shocks might induce a permanent redirection of innovation activities towards sectors with low-energy intensities. |
| JEL: | O33 Q43 Q55 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145722&r=ene |
| By: | Janda, Karel; Tan, Tianhao |
| Abstract: | This paper provides overview of all sustainable energy resources in two geographic areas- Central Europe and East Asia. Comparison of renewable energy sources in these two areas was not done before. We cover newly emerging important renewable energy sources of wind power, solar energy and bioenergy together with somehow less investigated geothermal sources. Our analysis includes also a well established hydroelectricity and nuclear energy. While nuclear energy is not a renewable resource, it was included into this analysis to provide complete coverage of all competitive energy sources with respect to carbon-based fossil fuels. We provide both descriptive and econometric analysis complemented with appropriate case studies. |
| Keywords: | Renewable Energy; Central Europe; East Asia |
| JEL: | Q42 R11 |
| Date: | 2017–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76719&r=ene |
| By: | Peter, Jakob (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Elberg, Christina (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Bettzüge, Marc Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Höffler, Felix (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | In this case study, Germany´s wind and solar deployment from 1991 to 2015 is analyzed with wind and solar representing a major pillar in Germany´s energy transition. Germany´s NREAP capacity goals for wind and solar power have been outreached, amongst others due to the (at times) generous and investor-risk minimizing feed-in tariff system (EEG) as well as supportive grid connection conditions for renewable energy generators. For a successful integration of further amounts of wind and solar energy, system flexibility, amongst others via a stronger integration of the European electricity market, is key. Also, market design adjustments will become necessary, for which the two in this research cooperation with Stanford University analyzed electricity markets in California and Texas can represent best-practice examples with regard to short-term gate closure times and regionalized electricity pricing. |
| Keywords: | Comparative Analysis; Decarbonization; RES Deployment; Energy Sector Regulation |
| JEL: | L94 N70 Q42 Q48 |
| Date: | 2015–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2015_008&r=ene |
| By: | Peter, Jakob (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Elberg, Christina (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Bettzüge, Marc Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Höffler, Felix (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | In light of progressing climate change, both Germany as well as the two U.S. federal states California and Texas have enacted decarbonization strategies based on renewable energies. At the same time, the policy instruments to pursue their goals differ substantially. This comparative study identifies similarities and differences in policy structures as well as the penetration of variable renewable resources. It shows a fast deployment of wind and solar power in Germany at comparatively high cost. At the same time, it reveals that the two U.S. markets could ameliorate the investment conditions for renewable energy via three measures: 1. Reduction of institutional obstacles and transaction costs, 2. Introduction of CO2-pricing (Texas) or increasing CO2-pricing (California), 3. additional support schemes for wind and solar, if substantive reasons for additional support prevail. |
| Keywords: | Comparative Analysis; Decarbonization; RES Deployment; Energy Sector Regulation |
| JEL: | L94 N70 Q42 Q48 |
| Date: | 2015–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2015_009&r=ene |
| By: | Helm, Carsten; Mier, Mathias |
| Abstract: | When the supply of intermittent renewable energies like wind and solar is high, the electricity price is low. Conversely, prices are high when their supply is low. This reduces the profit potential in renewable energies and, therefore, incentives to invest in renewable capacities. Nevertheless, we show that perfect competition and dynamic pricing lead to efficient choices of renewable and fossil capacities, provided that external costs of fossils are internalized by an appropriate tax. We also investigate some properties of electricity markets with intermittent renewables and examine the market diffusion of renewables as their capacity costs fall. We show that the intermittency of renewables causes an S-shaped diffusion pattern, implying that a rapid build-up of capacities is followed by a stage of substantially slowerdevelopment. While this pattern is well known from the innovation literature, the mechanism is new. We also find that technology improvements such as better battery storage capacities have substantial effects not only on the speed of market penetration, but also on its pattern. Finally, fluctuations of energy prices rise with the share of renewables. If regulators respond with a price cap, this leads to a faster market diffusion of renewables. |
| JEL: | Q21 D24 Q28 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145893&r=ene |
| By: | Wolf-Peter Schill; Alexander Zerrahn; Friedich Kunz |
| Abstract: | We examine the role of prosumage of solar electricity, i.e. PV self-generation combined with distributed storage, in the context of the low-carbon energy transformation. First, we devise a qualitative account of arguments in favor of and against prosumage. Second, we give an overview of prosumage in Germany. Prosumage will likely gain momentum as support payments expire for an increasing share of PV capacities after 2020. Third, we model possible system effects in a German2035 scenario. Prosumage batteries allow for a notable substitution of other storage facilities only if fully available for market interactions. System-friendly operation would also help limiting cost increases. We conclude that policymakers should not unnecessarily restrict prosumage, but consider system and distributional aspects. |
| Keywords: | Prosumage, battery storage, PV, energy transformation, DIETER |
| JEL: | C61 Q42 Q48 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1637&r=ene |
| By: | Radulescu, Doina; Pavanini, Nicola; Feger, Fabian |
| Abstract: | Renewable energy production via photovoltaic (PV) installations has increasingly taken off during the last years. This trend is desirable from an environmental perspective, but it challenges the financing of utilities' energy infrastructure networks. This happens because buildings with PV installations still require energy from the network, leaving the fixed costs of grid maintenance unchanged, but contribute less to the grid costs, as they mostly pay volumetric charges and intermittently produce their own energy. In this paper we propose an alternative tariff scheme to both incentivize PV adoptions and guarantee the sustainability of network costs. We use detailed data on energy consumption, income, wealth, and building characteristics for around 180,000 households in the Canton of Bern (Switzerland) in the years 2008-2013 to estimate models of energy demand and PV installation. We identify energy demand elasticities using a matching boundary discontinuity design that exploits price variation at spatial discontinuities, and we model PV adoption as a dynamic single agent investment framework. Using a counterfactual exercise we find that under a uniform tariff scheme low income households would experience a very small welfare loss. |
| JEL: | Q42 L94 D31 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145669&r=ene |
| By: | Hollingsworth, Alex; Rudik, Ivan |
| Abstract: | Renewable portfolio standards (RPSs) are state level policies that require in-state electricity providers to procure a minimum percentage of electricity sales from renewable sources. Using theoretical and empirical models, we show how RPSs induce out-of-state emissions reductions through inter-state trade of the credits used for RPS compliance. When one state passes an RPS, it increases demand for credits sold by firms in other (potentially non-RPS) states. We find evidence that increasing a state’s RPS decreases coal generation and increases wind generation in outside states through this tradable credit channel. We perform a welfare simulation to evaluate the aggregate benefits of the reductions in local coal-fired pollutants induced by RPSs. Our estimates suggest that a 1 percentage point increase a state’s RPS results in up to $100 million in gross benefits towards the United States as a whole. However, there is substantial heterogeneity in the total benefits caused by increases in different states’ RPSs. |
| Date: | 2016–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201610280700001012&r=ene |
| By: | Germeshausen, Robert |
| Abstract: | Feed-in tariffs are a widely used policy instrument to support deployment of renewable energy technologies. The aim of this paper is to estimate the causal effect of a cut in feed-in tariffs on solar photovoltaic (PV) installations. I isolate this effect by a differences-in-differences approach using data on all grid-connected PV systems within Germany from 2009 until 2013 on a county level. A policy change of administrative size classes in 2012 provides exogenous variation in feed-in tariffs. I find that a cut in feed-in tariffs of five percent leads to a decrease in newly installed capacity of around 46 kilowatt (kW) in a county per month. This is equivalent to approximately three percent of the average annual solar PV deployment on a national level from 2009 to 2011. The re-evaluation of size classes implies de facto the introduction of attribute-based regulation for small installations. The design of differentiated rates incentivizes smaller individual capacity choices at the border of size classes. This leads to excess bunching at the ceiling of the smaller size class. Neglecting this leads to overestimating treatment effects by around double the size. This potential bias underlines the impact of attribute-based regulation on technology adoption for solar PV. |
| JEL: | Q28 O38 Q42 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145712&r=ene |
| By: | Li, Wanning; Tesfatsion, Leigh |
| Abstract: | This study extends the agent-based 8-Zone ISO-NE Test System to include wind turbine agents, each characterized by location, physical type, and an output curve mapping local wind speed into wind power output. Increases in wind power penetration (WPP) are modeled as build-outs of investment queues for planned wind turbine installations. The extended system is used to study the effects of increasing WPP under both stochastic and deterministic day-ahead market (DAM) formulations for security-constrained unit commitment (SCUC).For each tested WPP, the expected cost saving resulting from a switch from deterministic to stochastic DAM SCUC is found to display a U-shaped variation as the reserve requirement (RR) for deterministic DAM SCUC is successively increased. Moreover, the RR level resulting in the lowest expected cost saving systematically increases with increases in WPP. |
| Date: | 2017–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201701310800001017&r=ene |
| By: | Köhler, Jonathan Hugh; Laws, Norman; Renz, Ina; Hacke, Ulrike; Wesche, Julius; Friedrichsen, Nele; Peters, Anja; Niederste-Hollenberg, Jutta |
| Abstract: | Die anhaltenden Nachhaltigkeitsherausforderungen unserer Gesellschaft - sei es hinsichtlich des Energie- und Ressourcenverbrauchs oder der sozialen Gerechtigkeit - illustrieren die Notwendigkeit einer großen gesellschaftlichen Transformation, um entsprechend der Nachhaltigkeitsstrategie Deutschlands "eine tragfähige und gerechte Balance zwischen den Bedürfnissen der heutigen Generation und den Lebensperspektiven künftiger Generationen" zu erreichen (Bundesregierung , 2012, S. 18; WBGU, 2011). Ein zentrales Schlüsselkonzept der Transitionsforschung ist das Mehr-Ebenen-Modell (multi-level perspective, MLP), welches insbesondere für empirische Studien zu historischen Transitionen entwickelt und angewendet wurde. Die erforderlichen Veränderungen von Institutionen und Praktiken können auf den verschiedensten Ebenen und für die verschiedensten Bereiche - ökonomische, soziale, kulturelle und ökologische - untersucht und beschrieben werden. Besonders eng verknüpft mit der Lebensrealität der Menschen und unmittelbar wahrnehmbar ist die kommunale Ebene. Während im Handlungsfeld "Bauen und Wohnen" der allgemeine Wandel gesellschaftlicher Altersstrukturen im Vordergrund steht, sind es bei "Wasser" und "Energie" insbesondere die mit der demographischen Entwicklung in Deutschland einhergehende regionale Veränderung der Bevölkerungsgrößen und der Nutzerzahlen, denen eine entscheidende Bedeutung bei dem Veränderungsdruck auf bestehende Regime zukommt. Diese bestehenden Regime zeichnen sich in allen drei Fällen durch eine Pfadabhängigkeit aus, die durch hohen materiellen und infrastrukturellen Bereitstellungs- und Investitionsaufwand bedingt ist. So stellt gerade in den Bereichen "Bauen und Wohnen" und "Wasserver- und Abwasserentsorgung" die Langlebigkeit der getätigten Investitionen ein Hemmnis für Wandlungsprozesse dar - aber auch die Schaffung und der Unterhalt von Wärmenetzen benötigt höheren Aufwand und nicht unerhebliche Anfangsinvestitionen. Dadurch ergibt sich eine starke Beharrlichkeit und Fixierung von Akteuren auf bestehende Regime. Diese Erstanalyse zeigt, dass in allen drei Handlungsfeldern ein Regime, Landschaftsfaktoren, welche Druck auf dieses ausüben, sowie Nischeninnovationen, die in diesem Kontext entstehen, identifiziert werden können. Dabei ist Nachhaltigkeit für alle Nischen als Innovationstreiber zu erkennen, wenn auch mit unterschiedlicher Wichtigkeit der drei Dimensionen "ökologische", "ökonomische" und "soziale Nachhaltigkeit". Der demographische Wandel ist im Bau- und Wohnbereich ein weiterer entscheidender Treiber, gleichzeitig bieten Sanierungserfordernisse oder neue Bedarfe für Infrastrukturen im Wärme- und Wasserbereiche günstige Zeitfenster für mögliche Transitionen. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s012017&r=ene |
| By: | Janda, Karel; Tan, Tianhao |
| Abstract: | This paper starts with a brief literature review of sustainable energy literature with focus on economic aspects of sustainability. This is followed by description of energy situation in Central Europe and East Asia with a focus on sustainable energy resources. Our analysis of energy sector describes energy sector and both fossil and renewable fuel energy supply with particular emphasize on electricity. |
| Keywords: | Renewable Energy; Central Europe; East Asia |
| JEL: | Q42 R11 |
| Date: | 2017–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76717&r=ene |
| By: | Mary Karumba; Edwin Muchapondwa |
| Abstract: | The use of small scale off-grid renewable energy for rural electrification is now seen as part of the sustainable energy solutions. The expectations from such small scale investment is that it can meet basic energy needs of a household and subsequently improve some aspects of the household welfare. However, these stated benefits remain largely hypothetical because there is data and methodological challenges in existing literature attempting to isolate such impact. This paper uses field data from micro hydro schemes in Kenya, and propensity score matching technique to demonstrate such an impact. The study finds that households connected to micro hydroelectricity consume 1.5 litres less of kerosene per month compared to households without any such electricity connection. Also, non-connected households spend 0.92 USD more for re-charging their cell phone batteries per month in comparison to those who were using micro hydroelectricity service. Finally, school children from households that are connected to micro hydroelectricity were found to devote 43 minutes less on evening studies compared to those in non-connected households. The findings provide interesting insights to some of the claims made for or against use of o grid renewable energy for rural electrification. |
| Keywords: | Micro hydro; rural electrification; impact; Kenya |
| JEL: | C21 Q01 Q42 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:659&r=ene |
| By: | Hlalefang Khobai; Gift Mugano; Pierre Le Roux |
| Abstract: | This paper investigates the causal relationship between electricity supply and economic growth in South Africa using annual data covering the period between 1985 and 2014. This paper used a multivariate framework which included trade openness, electricity price, capital and employment as intermittent variables. The ARDL bound testing was employed to establish the long run relationship between these variables. The Vector Error Correction Model (VECM) was estimated to carry out the test of causality. The results support the existence of co-integration among the variables. The VECM established a bidirectional causality flowing between electricity supply and economic growth. This shows that the policy makers should prioritise building capacity additions and infrastructure development of the South African electricity supply industry, as this will stimulate economic growth and increase electricity in the country. The findings further show that electricity prices, trade openness, employment and capital Granger-cause economic growth and electricity supply. This result means that increased economic growth and electricity supply is dependent on the degree of trade openness, employment levels in the country and the amount of investment. |
| Keywords: | electricity supply, economic growth, South Africa, causality |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:rza:wpaper:656&r=ene |
| By: | Nicholas Ryan |
| Abstract: | India, seeking to reduce electricity shortages, set up a new power market, in which transmission constraints sharply limit trade between regions. I use confidential bidding data to estimate the costs of power supply and simulate market outcomes with more transmission capacity. I find that the returns to building transmission hinge on market conduct. Under a competitive model of supply, transmission investments roughly breakeven. Under a strategic model, the same transmission expansion increases market surplus by 19 percent, enough to justify the investment, because low-cost sellers increase supply in response to a more integrated grid. |
| JEL: | L13 L94 O13 |
| Date: | 2017–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:23106&r=ene |
| By: | Li, Wanning; Tesfatsion, Leigh |
| Abstract: | The need for flexible service provision in electric power systems has dramatically increased due to the growing penetration of variable energy resources, as has the need to ensure fair access and compensation for this provision. A swing contract (SC) facilitates flexible service provision because it permits multiple service attributes to be offered together in bundled form with each attribute expressed as a range of possible values rather than as a single point value. This paper discusses a new SC Market Design for electric power systems that permits SCs to be offered by any dispatchable resource. An analytical optimization formulation is developed for the clearing of an SC day-ahead market that can be implemented using any standard mixed integer linear programming (MILP) solver. The practical feasibility of the optimization formulation is demonstrated by means of a numerical example. |
| Date: | 2017–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201702010800001020&r=ene |
| By: | Knapik, Oskar; Exterkate, Peter |
| Abstract: | In a recent review paper, Weron (2014) pinpoints several crucial challenges outstanding in the area of electricity price forecasting. This research attempts to address all of them by i) showing the importance of considering fundamental price drivers in modeling, ii) developing new techniques for probabilistic (i.e. interval or density) forecasting of electricity prices, iii) introducing an universal technique for model comparison. We propose new regime-switching stochastic volatility model with three regimes (negative jump, normal price, positive jump (spike)) where the transition matrix depends on explanatory variables. Bayesian inference is explored in order to obtain predictive densities. The main focus of the paper is on short-time density forecasting in Nord Pool intraday market. We show that the proposed model outperforms several benchmark models at this task. |
| Keywords: | Electricity prices, density forecasting, Markov switching, stochastic volatility, fundamental price drivers, ordered probit model, Bayesian inference, seasonality, Nord Pool power market, electricity prices forecasting, probabilistic forecasting |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:syd:wpaper:2017-02&r=ene |
| By: | Bartosz Uniejewski; Rafal Weron; Florian Ziel |
| Abstract: | Most electricity spot price series exhibit price spikes. These extreme observations may significantly impact the obtained model estimates and hence reduce efficiency of the employed predictive algorithms. For markets with only positive prices the logarithmic transform is the single most commonly used technique to reduce spike severity and consequently stabilize the variance. However, for datasets with very close to zero (like the Spanish) or negative (like the German) prices the log-transform is not feasible. What reasonable choices do we have then? To address this issue, we conduct a comprehensive forecasting study involving 12 datasets from diverse power markets and evaluate 16 variance stabilizing transformations. We find that the probability integral transform (PIT) combined with the standard Gaussian distribution yields the best approach, significantly better than many of the considered alternatives. |
| Keywords: | Electricity spot price; Forecasting; Variance stabilizing transformation; Probability integral transform; Price spike; Diebold-Mariano test |
| JEL: | C14 C22 C51 C53 Q47 |
| Date: | 2017–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1701&r=ene |
| By: | Acheampong, Theophilus |
| Abstract: | Despite almost a decade of strong economic growth, Ghana still lags behind in its ability to generate enough power to catalyse this growth. The rapid deceleration in economic activity over the past three years has been primarily due to persistent energy supply constraints and rising energy-related input costs to production. This article analyses the implications of the changing power generation mix for electricity pricing in Ghana taking into account new capacity additions to the generation mix and tariff pricing structure. Based on the number of new power purchase agreements signed with IPPs, we find that thermal generation will continue to form the backbone of Ghana’s energy mix in the medium term over the next five to ten years. But this also implies the need for cost-reflective tariffs in line with this new generation mix assuming import parity domestic gas prices are maintained. |
| Keywords: | Energy Economics, Energy Policy, Thermal Power, Ghana |
| JEL: | Q40 Q41 Q43 Q48 |
| Date: | 2016–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76703&r=ene |
| By: | Bensch, Gunther; Kreibaum, Merle; Mbegalo, Tukae; Peters, Jörg; Wagner, Natascha |
| Abstract: | More than 1.1 billion people in developing countries lack access to electricity with a large share living in rural Africa. It is hypothesized that economic and human development are difficult without electricity access. Tanzania is one of the poorest countries in the world and the country's huge geographical extent and low population density makes infrastructure development such as electrification a particularly difficult exercise. The electrification rate is extremely low at around 46 percent in urban and 4 percent in rural areas. The access to reliable modern energy has become one of 17 Sustainable Development Goals (UN 2014) and the international community has embarked on a historical mission through the United Nations initiative Sustainable Energy for All (SE4All) that strives to provide electricity to everybody by 2030. Investment requirements to achieve this goal are enormous and large gaps exist so far. Additional investment initiatives are required. |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwimat:111&r=ene |
| By: | Syed Abul Hasan; Pallab Mozumder |
| Abstract: | We examine how energy use at the household level moves with income growth in Bangladesh. Using the 2010 wave of Bangladesh Household Income and Expenditure Survey data, our analyses indicate a U-shaped relationship of both electricity use and other types of energy use (combined) with household consumption. The findings imply that as income grows, households increase their energy use less than proportionally up to a threshold. Energy use beyond the threshold increases at a higher rate than total consumption, particularly for electricity use. We identify the threshold (turning point) for both electricity and other types of energy use. Based on the current level of consumption and its growth, reaching at the turning point would require 17 years for the former category but only 7 years for the latter group. |
| Keywords: | Household energy consumption, Energy Engel curve, Turning point |
| JEL: | O13 D12 Q40 Q56 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:crwfrp:1701&r=ene |
| By: | Janda, Karel; Tan, Tianhao |
| Abstract: | This research presents an overview of different sustainable energy development scenarios in Central Europe and East Asia, and is aimed to evaluate the efficiency and availability for introducing a specific sustainable energy source. Accordingly: wind, hydropower, solar, bioenergy, geothermal, nuclear energy. By conducting analysis through multicriteria decision analysis (MCDA) and analytic hierarchy process (AHP) models, divergences among energy options in Central Europe and East Asia are emphasised due to their preferences in hierarchy. Our evaluation results indicate that Central Europe and East Asia should introduce different sustainable energy technologies on account of their own strengths and drawbacks in energy judgements and criterions |
| Keywords: | Renewable Energy; Central Europe; East Asia |
| JEL: | Q42 R11 |
| Date: | 2017–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76716&r=ene |
| By: | Congressional Budget Office |
| Abstract: | In fiscal year 2015, the federal government supported the development, production, and use of fuels and energy technologies through tax preferences totaling $15.8 billion and spending by the Department of Energy totaling $5.4 billion. |
| JEL: | H23 O32 Q20 Q30 Q40 Q50 |
| Date: | 2015–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:509802&r=ene |
| By: | Astrid Cullmann; Maria Nieswand; Julia Rechlitz |
| Abstract: | While the link between the ownership and productive efficiency of firms has been discussed extensively, no consensus exists regarding the superiority of one or the other in non-competitive, regulated environments. This paper applies a flexibleproduction model to test for efficiency differences associated with ownership types while allowing the production to adapt to market restructuring over time. Our empirical setting is based on a new, rich micro dataset of electricity distribution firms operating between 2006 and 2012 in Germany, where the energy transition enforces the adjustment of energy infrastructure. First, our results show that electricity distribution system operators adapted their production technologies over time. Second, there is no empirical evidence that public firms operated any less efficiently than private firms. The empirical findings are relevant to the (re)municipalization debate, which appears to have exaggerated the dichotomy between public and private utilities’ efficiency. |
| Keywords: | Utilities, ownership, productivity, electricity distribution, Energiewende |
| JEL: | L94 L51 L98 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1641&r=ene |
| By: | Caroline Freund (Peterson Institute for International Economics); Dario Sidhu (Peterson Institute for International Economics) |
| Abstract: | Using firm level data, the authors examine how global industrial concentration has changed over the last decade in relation to the rise of China. Between 2006 and 2014, global concentration has declined in most industries and is falling on average across all industries, while firms at the top of the distribution are experiencing significant churning. The resulting enhanced industrial competition is partly attributable to the rising market shares of firms from China and other emerging markets at the expense of incumbent industry leaders. The authors further show evidence of global allocative efficiency—highly productive firms tend to be larger and grow faster. Global concentration has, however, risen significantly in several industries where Chinese state-owned enterprises (SOEs) dominate, and China’s SOEs are on average too large and expanding too fast given their low levels of productivity. |
| Keywords: | big business, multinational enterprise, state-owned enterprise, concentration |
| JEL: | D22 F23 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp17-3&r=ene |
| By: | Brzuszkiewicz, Sara |
| Abstract: | During the last few years and because of the low oil prices in particular, the increasing awareness of the unsustainability of subsidized systems led several MENA countries to take steps to lower subsidies, which have been part of the social contract for decades, especially as far as the energy sector is concerned. Nowadays, the need for reforms is compelling for more than one reason. Namely, the subsidized system distorts market trends, fosters inefficient use of resources, depresses foreign direct investment and fuels overconsumption, which is no longer sustainable, particularly as far as the population growth in most of the MENA countries is concerned. In this paper both the resource-abundant countries and the energy importing nations will be analyzed, in order to investigate similarities and differences between the two and to carry out an initial assessment of the reforms in two representative countries, namely Saudi Arabia, exporting country par excellence, and Egypt, which imports energy. |
| Keywords: | Energy Sector, Subsidies, Subsidy Reforms, MENA Region, Saudi Arabia, Egypt, Rentier State, Resource Curse Theories, Resource /Energy Economics and Policy, O1, O13, |
| Date: | 2017–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemes:253217&r=ene |
| By: | Janda, Karel; Quarshie, Gregory |
| Abstract: | This paper takes a critical look at the natural resource curse in countries in sub-Saharan Africa and it highlights the role of institutionalised authority. The paper first provides a comprehensive literature review of natural resource curse, Dutch disease and the role of oil resources in resource curse. This is follow by the description of the relevant economic factors in sub-Saharan Africa, which is taken as prime example of the region with both important oil and other natural resources and with serious economic growth problems. |
| Keywords: | Economic Growth; Natural Resources; Oil; Institutions; Sub-Saharan Africa |
| JEL: | O43 P52 Q43 |
| Date: | 2017–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76748&r=ene |
| By: | Bidder, Rhys (Federal Reserve Bank of San Francisco); Krainer, John (Federal Reserve Bank of San Francisco); Shapiro, Adam Hale (Federal Reserve Bank of San Francisco) |
| Abstract: | Using detailed bank balance sheet data obtained under the United States’ stress testing programs we examine how a shock to banks’ net worth affects their portfolio decisions. We focus on the supply of credit (the bank lending channel) and the ultimate effect on borrowers (the credit channel), but also examine how the shock affects banks’ overall risk profile and security holdings. Our shock is derived from variation across banks in their loan exposure to industries adversely affected by the precipitous oil price declines of 2014. For corporate lending, we find significant evidence of a bank lending channel. Banks more exposed to the shock appear to have tightened credit as evidenced by tightening lending standards and reductions in lending to firms. We do not find significant evidence of a credit channel. The effect of the tightening of credit on firms’ scale seems minimal. This appears to be because firms are able to substitute to alternative financing from other banks or by drawing down pre-existing lines of credit. In terms of residential lending, the story is more subtle. Affected banks tightened credit on mortgages that they would ultimately hold in their portfolio but appear to have expanded credit for those mortgages that would predominantly be securitized. This tendency is reflected in a contemporaneous expansion in their holdings of MBS after the shock. While affected banks substantially de-risked their portfolios through adjusting their residential lending in this way, we again find that the ultimate effect on borrowers was minimal. |
| Date: | 2017–01–20 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:2017-03&r=ene |
| By: | Georgios Bampinas; Theodore Panagiotidis |
| Abstract: | The effect of financial shocks on the cross-market linkages between oil prices, both spot and future, and stock markets is examined for four crises: the Mexican crisis of 1994, the Asian crisis of 1997, the dot.com bubble of 2000 and the global financial crisis of 2007–09. By employing the local Gaussian correlation approach introduced in Tjøstheim and Hufthammer (2013), which captures asymmetries and the intrinsic nonlinearity of the relationship, we find that the two markets were regionalised for most of the 1990s and the early 2000s. Flight from stocks to oil occur in all crisis episodes under extreme market conditions, except the recent global financial crisis. During the latter, evidence of higher correlation between the two markets throughout the spectrum emerges and this is more pronounced in the state of financial distress (in the left tail). The view that stock and oil markets behave like ’a market of one’ after the financialisation of commodities is further supported by the presence of contagion between US stock markets and all the benchmark crude oil markets. Finally, our empirical results provide evidence of nonlinear and asymmetric dependence between oil and stock markets during all financial crisis periods |
| Keywords: | stocks, crude oil, nonlinear dependence, financial crisis, contagion, local Gaussian correlation |
| JEL: | G01 G10 F3 |
| Date: | 2017–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:eea:boewps:wp2016-11&r=ene |
| By: | Janda, Karel; Stankus, Elena |
| Abstract: | This paper provides an overview of biofuel’s markets Ukraine. While Ukraine has great competitive advantage in the production of biofuels based on availability of the feedstock and fertile soils, it does not utilize this opportunity despite the policy goal of decreasing energy dependence on Russian fossil fuels. In the recent years Ukraine was working on fulfilment of European standards in the sector of biofuels. Most importantly, as opposed to Russia, Ukraine has built legislative base which aims to support the industry development and offer large scale of benefits. But due to high excise duty, low oil prices and no penalties for not achieving established indicators, the biofuel industry still stays non-operating. |
| Keywords: | Eastern Europe; Biofuels; Ethanol; Biodiesel |
| JEL: | P28 Q16 Q42 R11 |
| Date: | 2017–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76747&r=ene |
| By: | Janda, Karel; Stankus, Elena |
| Abstract: | This paper provides an overview of biofuel’s markets and policies in Russian Federation. It shows that one of the many barriers that hinder biofuel development is strong oil and gas lobby, which cooperates with Russian government. The main obstacle for the development of biofuel’s sector in Russia is a significant lack of coherent policy and regulation. Creation of healthy biofuel’s sector requires authorities to found a new governing body, owning adequate rights, staffed with qualified personnel and resistant to the external influence. In order to reduce the uncertainty in biofuels sphere, the government would have to provide sustained long-term policy commitment and clarify the energy strategy. These actions would bring confidence in investments into sector of biofuels and motivate the growth within industry. Until the proposed incentives are not established on the legal base, the progress in the sector of biofuels is not possible. Even in case of the growing support from the government, the rapid flourishing of the sector is not expected. |
| Keywords: | Eastern Europe; Biofuels; Ethanol; Biodiesel |
| JEL: | P28 Q16 Q42 R11 |
| Date: | 2017–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76729&r=ene |
| By: | Janda, Karel; Stankus, Elena |
| Abstract: | This paper provides an overview of biofuel’s markets and policies in Belarus. Belarus remains the country with a critical level of energy dependence on Russia. Availability of cheap Russian sources and lack of diversification within energy sector hinder Belarus from expanding the potential of local energy resources. While energy independence and security, which is defined as share of local energy sources in the total energy balance, is declared as Belarusian priority, there is essentially no biofuels industry v Belarus. An interesting option of development of biofuels is a possibility of utilization of large areas unsuitable for human food or animal feed production because of Chernobyl nuclear disaster. |
| Keywords: | Eastern Europe; Biofuels; Ethanol; Biodiesel |
| JEL: | P28 Q16 Q42 R11 |
| Date: | 2017–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76725&r=ene |
| By: | Janda, Karel; Stankus, Elena |
| Abstract: | This paper provides an overview of biofuel’s markets in Russian Federation, Belarus and Ukraine and it estimates prospects of their future development in the context of global biofuels development. We first provide a general characterisation of biofuels, followed by description of development of biofuel industry in the key selected countries and the outline of current trends on the global market. This is followed by a quantitative analysis of the possible development of biofuels in Russian Federation, Belarus and Ukraine |
| Keywords: | Eastern Europe; Biofuels; Ethanol; Biodiesel |
| JEL: | P28 Q16 Q42 R11 |
| Date: | 2017–02–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:76728&r=ene |
| By: | Murnaghan, Kitty |
| Abstract: | During a time in which the subject of climate change is deemed high on the list of priorities of many governments, it is important to assess to what extent policies in this field are achieving meaningful results. The link between energy usage and global warming is clear and today in the European Union the use of renewable resources is being promoted more than ever before. The move towards a renewables based economy has clear benefits over a fossil fuel based one with regards to climate change and the environment, however if the implementation of renewables is not monitored and regulated then this is not a given by any means. Of the renewable resources, bioenergy has a high level of importance in the EU. For this reason, this paper will make a comprehensive evaluation of the EU's biofuel policy in order to assess what the driving forces behind the regulation of this resource are, and how they affect to what extent it is successful or not. In order to do this, firstly the impacts of current EU bioenergy consumption will be assessed, to determine whether it is achieving the stated and desired climate goals or not. Findings will show that in fact the current formulation of Europe's Renewable Strategy creates pressure to meet binding targets for renewable usage and the resultant rapid increase in the demand for bioenergy has caused a number of negative social and ecological impacts to arise. Therefore in light of this, the current systems in place at the EU level meant to regulate the use of bioenergy and ensure it is implemented in a sustainable way will be critically analysed in order to find out how such negative impacts have been able to occur. The final section will then look into the driving forces responsible for regulation of this kind through a case study of Germany and Indonesia. |
| Keywords: | European Union energy policy,agrofuel,biofuel,renewable energy,sustainability criteria |
| JEL: | Q16 Q28 Q21 Q56 F23 K32 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:812017&r=ene |
| By: | Ruf, Julia Anna |
| Abstract: | This paper provides a policy analysis of the EU Emissions Trading System and its crisis. The aim of the research is to give an answer to the question why the EU Emissions Trading System is in crisis and cannot be revised in an effective way. Therefore, the policy process of the revision of the EU Emissions Trading System for its third phase is analysed. The research is based on the theoretical assumptions of the historical-materialist policy analysis, which also serves as an analytical tool. The main result of the analysis is that the framing of neoliberalism has shaped the construction and the further revisions of the system. For this reason, the EU Emissions Trading System can be considered to be in crisis because it is based on neoclassical assumptions, which are not suitable for tackling the issue of climate change. Revisions will not lead to a success of the system as long as it is based on neoclassical economics. However, the current strength of neoliberalism makes a turning away unlikely. |
| Keywords: | EU Emissions Trading System,Crisis,Revision,Neoliberalism,Historical-Materialist Policy Analysis |
| JEL: | O13 Q48 Q54 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:822017&r=ene |
| By: | Gerigk, Joschka |
| Abstract: | In this paper, I analyze incomplete enforcement in a political economy model. I use a contest framework to explain changes in lobbying behavior when special interest groups anticipate the incomplete enforceability of environmental regulation. In this setting, I compare two instruments, namely an abatement standard and an emission tax. Regulation of a polluting output is proposed and two lobby groups - representing the interests of producers and environmentalists, respectively - seek to influence the government in order to prevent or support the implementation of the regulation. I develop a general framework to demonstrate that the lobbying efforts are determined not only by the stringency of the proposed policy - as determined by the level of the tax or abatement standard - but, importantly, also by its enforceability. Using common functional specifications, I then show that, when an emission tax is proposed, incomplete enforcement may not only reduce the industry's opposition to regulation compared to a situation with full enforcement, but it may, despite the possibility of untruthful reporting, also reduce expected environmental damage. When instead an abatement standard is proposed, however, the effects of regulatory stringency and enforceability are ambiguous, rendering unequivocal policy recommendations for this case impossible. |
| JEL: | D72 L51 Q58 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145920&r=ene |
| By: | Falcke, Florian (RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | In early 2019, the market stability reserve (MSR), a volume-based regulatory regime for tackling the surplus in emission allowances (EUAs) in the EU Emissions Trading System (EU ETS), will enter into force. The MSR will take EUAs out of the market when the amount of banked and thus unused EUAs exceeds an upper threshold and will release EUAs into the market when the amount of banked EUAs falls under a lower threshold. Over the last years, the design of the MSR has been the topic of controversial discussion. Among other concerns, scientists are afraid that the MSR may increase price volatility and uncertainty, which in turn may enhance specula-tive activity. In this paper we analyze the effect of the MSR on the behavior of a speculator with market power. For this purpose, the interlinked electricity and carbon market is modeled with an open-source agent-based model, which is expanded by adding the banking behavior of the spec-ulator. The results indicate that with the MSR mechanism being active in the EU ETS, both speculative banking activity and speculator profit increase. We further test the hypothesis that the MSR mechanism itself could be used by a speculator to increase his returns, leading to the conclusion that while this is theoretically possible, it is unlikely to actually happen. The results obtained can help to understand future behavior of market participants in the EU ETS. |
| Keywords: | Global warming; Climate change mitigation; EU ETS; Speculation |
| JEL: | D84 G18 Q48 |
| Date: | 2016–08 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2016_009&r=ene |
| By: | Singh, Rajesh; Weninger, Quinn |
| Abstract: | We study production capacity utilization and emission permit utilization in a model where firms jointly produce a valued good and an environmental bad, pollution. Firms are ex ante identical but experience random productivity shocks after factor employment. A regulator imposes a cap-and-trade policy to control pollution emissions. Trade in emission permits entails transactions costs which follow two specifications: constant per unit trading costs or fixed trading costs. Under constant per unit trading costs, the equilibrium outcome depends only on the total unit trading costs; the incidence of costs borne by buyers and sellers does not matter. Under fixed costs, both buyers' and sellers' costs matter. Under proportional costs permit trade always occurs, with either full or partial market clearing, as long as the total trading costs are below the permit trade surplus. With fixed costs, trade is either partial or non-existent. The implication is that firms fully utilize their production capacity for a range of proportional trading costs; capacity is never fully utilized under fixed costs. Under proportional costs, trade is impeded most, even with small costs, when the emission cap is either relatively high or low. There exists a non-monotonic relationship between the aggregate emissions cap and a lower bound for trading costs that obstruct or preclude trade. Under fixed costs, a similar relationship between emission cap and the cost threshold that precludes trade holds only if the output variance is exogenously fixed. Otherwise, the higher the emission cap the higher is this cost threshold. In contrast to proportional costs where capacity utilization decreases with productivity variance, the result is the opposite under fixed costs. |
| Date: | 2016–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201607060700001021&r=ene |
| By: | Zaklan, Aleksandar |
| Abstract: | Independence of installation-level emissions from endowments of allowances allocated for free constitutes a necessary condition for the cost-effectiveness of a cap-and-trade system. A causal relationship between allocations and emissions suggests the presence of an endowment effect induced by free allocation and indicates a loss in cost effectiveness. The issue is relevant to the EU's Emissions Trading System (EU ETS), where a large share of the total allocation occurs for free. This paper tests for the presence of an endowment effect among European electricity sector plants as regulated under the EU ETS by evaluating whether growth in plant-level emissions of power generators changed due to a switch from free allocation to full auctioning. To overcome the endogeneity of allocations I exploit a natural experiment inducing exogenous variation in the allocation of allowances to power producers. While electricity producers located in EU-15 countries were subject to full auctioning starting in 2013, free allocation continued under the so-called 10c rule in eight member states. I apply a matched difference-in-differences research design to a unique EU-wide plant-level dataset of emissions and technical characteristics, constructing a synthetic control group. I find no evidence of a general endowment effect. However, there is some evidence in favor of an endowment effect for a sub-sample of small emitters. |
| JEL: | Q54 Q58 C22 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145682&r=ene |
| By: | Rudik, Ivan |
| Abstract: | Many environmental standards are expressed in terms of intensity rather than absolute levels. In some cases, intensity standards are associated with tradable credit markets to mitigate the firms’ compliance costs. I develop a jurisdictional model of credit trading under an intensity standard, framed in terms of a Renewable Portfolio Standard for electric utilities. I find that jurisdictions of firms with high costs of compliance may actually be better off by not allowing inter-jurisdictional credit trading. Counterintuitively, increasing the stringency of the intensity standard under credit trading can have the opposite of the intended effect and decrease renewable electricity generation. |
| Date: | 2016–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201602020800001013&r=ene |
| By: | Wagner, Ulrich J.; De Preux, Laure |
| Abstract: | Carbon dioxide (CO2) emissions are known to cause global climate change but no damage to the local environment. However, because CO2 is often jointly produced with other substances that pollute the environment, CO2 abatement may generate ancillary benefits, especially for human health. Previous research suggests that these co-benefits can offset a substantial share of the economic costs of mitigation policies. This paper conducts the first empirical test of this hypothesis in the context of the European Emissions Trading Scheme (EU ETS) for CO2. The econometric analysis exploits comprehensive microdata on discharges of more than 90 different pollutants into air, water and soil, at more than 28,000 commercial installations in 31 European countries. It is found that the EU ETS decreased air releases of some pollutants while increasing water releases of other pollutants. Moreover, in some cases the patterns of spatial redistribution are strongly correlated with income, population size or age. The implications for the efficiency and environmental justice of the EU ETS are discussed. |
| JEL: | H23 Q54 Q58 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145800&r=ene |
| By: | Nepal, Rabindra; Tisdell, Clem; Jamasb, Tooraj |
| Abstract: | Global warming and other adverse climate change impacts induced by anthropogenic carbon dioxide emissions is a major public policy concern around the world. This paper examines the impacts of market-based economic reforms on per capita CO2 emissions in the European and Central Asian transition economies where environmental degradation was pervasive prior reforms. A dynamic panel data model is employed for this purpose for 28 countries covering 22 years from 1990-2012. Our results suggest that reforms in competition policy and corporate governance are the significant driver of emissions reductions in the region. Therefore, advances in competition policy and governance reforms are desirable given the available scope to extend these reforms. The Kyoto Protocol had no significant effect in reducing emissions levels while the relationship between economic growth and emissions seems weak based on our results. The results indicate that reducing energy use by increasing energy efficiency and investments in renewable energy are necessary to reduce the carbon emissions level and mitigate the adverse impacts of climate change in the region. |
| Keywords: | transition, CO2 emissions, reforms, environmental policy, climate change, Environmental Economics and Policy, Resource /Energy Economics and Policy, Q57, Q54, P27, P28, |
| Date: | 2017–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uqseee:253076&r=ene |
| By: | Kene Boun My; Benjamin Ouvrard |
| Abstract: | We provide an experimental test of the theoretical predictions obtained in Ouvrard and Spaeter (2016). A public goods experiment is proposed in which the subjects can contribute to reduce the level of pollution, which is stochastic. A nudge (announcement of the socially optimal contribution) and a tax are implemented to improve the level of contributions. The environmental sensitivity and optimism of the subjects are also elicited. Our first result shows that the implementation of the nudge does not perform as well as the implementation of the tax. The reaction to the nudge depends directly on individuals’ environmental sensitivity, contrary to the reaction to the tax. Secondly, the nudge performs well with highly sensitive subjects only during the first half of its implementation. Lastly, the efficiency analysis shows that the implementation of the nudge significantly decreases the groups’ welfare for the least sensitive subjects, in comparison to the baseline. In sum, these results tend to corroborate the predictions obtained in Ouvrard and Spaeter (2016). |
| Keywords: | incentives, nudge, environmental sensitivity, optimism, tax. |
| JEL: | C91 H41 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2017-06&r=ene |
| By: | Rudik, Ivan |
| Abstract: | Integrated assessment models (IAMs) are economists' primary tool for analyzing the optimal carbon tax. Damage functions, which link temperature to economic impacts, have come under fire because of their assumptions that may produce significant, and ex-ante unknowable misspecifications. Here I develop novel recursive IAM frameworks to model damage uncertainty. I decompose the optimal carbon tax into channels capturing parametric damage uncertainty, learning, and misspecificationconcerns. Damage learning and using robust control to guard against potentialmisspecifications can both improve ex-post welfare if the IAM's damage function is misspecified. However, these ex-post welfare gains may take decades or centuries to arrive. |
| Date: | 2016–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201611130800001011&r=ene |
| By: | François Cohen; Matthieu Glachant; Magnus Söderberg |
| Abstract: | Using household-level data from the American Housing Survey, this paper assesses the cost of adapting housing to temperature increases. The authors account for both energy use adjustments and capital adjustments through investments in weatherization and heating and cooling equipment. The authors’ best estimate of the present discounted value of the cost for adapting to the A2 ‘business-as-usual’ climate scenario by the end of the century is US$5,600 per housing unit, including both energy and investment costs. A more intense use of air conditioners will be compensated for by a reduction in heating need, leading to a shift from gas to electricity consumption. |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:lsg:lsgwps:wp263&r=ene |
| By: | Hillebrand, Marten; Hillebrand, Elmar |
| Abstract: | This paper develops a dynamic general equilibrium model with an arbitrary number of different regions to study alternative climate policies and the consequences of climate change. Countries differ with respect to their state of economic development, factor endowments, and climate damages and trade on global markets for capital and exhaustible resources. Our main theoretical result derives an optimal climate policy consisting of an optimal emissions tax and an optimal transfer policy. The optimal climate tax can be determined explicitly in our framework and is independent of any weights attached to the interests of different countries. These weights only determine optimal transfers which distribute tax revenues across countries. We infer that the real political issue is not the amount of taxation required to reduce global warming but how the burden of climate change should be shared via transfer payments between different countries. To offer some guidance on this matter, we conduct a numerical simulation study which analyzes the optimal transfers between OECD and Non-OECD countries. |
| JEL: | H23 Q43 Q54 |
| Date: | 2016 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc16:145903&r=ene |
| By: | Lemoine, Derek; Rudik, Ivan |
| Abstract: | Uncertainty is critical to questions about climate change policy. Recently developed recursive integrated assessment models have become the primary tool for studying and quantifying the policy implications of uncertainty. The first wave of recursive models has made valuable, pioneering efforts at analyzing disparate sources of uncertainty. We decompose the channels through which uncertainty affects policy and quantify them in a recursive extension of a benchmark integrated assessment model. We argue that frontier numerical methods will enable the next generation of recursive models to better capture the information structure of climate change and to thereby ask new types of questions about climate change policy |
| Date: | 2016–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:201610010700001015&r=ene |