nep-ene New Economics Papers
on Energy Economics
Issue of 2017‒05‒07
34 papers chosen by
Roger Fouquet
London School of Economics

  1. Do The Effects of Social Nudges Persist? Theory and Evidence from 38 Natural Field Experiments By Alec Brandon; Paul J. Ferraro; John A. List; Robert D. Metcalfe; Michael K. Price; Florian Rundhammer
  2. The Effect of Fuel Economy Standards on Vehicle Weight Dispersion and Accident Fatalities By Antonio Bento; Kenneth Gillingham; Kevin Roth
  3. Blame it on the Owner – Ownership and Energy Performance of Multidwelling buildings By Broberg, Thomas; Egüez, Alejandro
  4. Harnessing Policy Complementarities to Conserve Energy: Evidence from a Natural Field Experiment By John A. List; Robert D. Metcalfe; Michael K. Price; Florian Rundhammer
  5. The Renewable Energy Policy Debate in the Philippines By Rosellon, Maureen Ane D.
  6. Equilibrium Supply Security in a Multinational Electricity Market with Renewable Production By Tangerås, Thomas
  7. Distributed Photovoltaic Power Generation: Possibilities, Benefits, and Challenges for a Widespread Application in the Mexican Residential Sector By Pedro I. Hancevic; Hector M. Nunez; Juan Rosellón
  8. Environment-adjusted operational performance evaluation of solar photovoltaic power plants: A three stage efficiency analysis By Zhaohua Wang; Yi Li; Ke Wang; Zhimin Huang
  9. What drives the profitability of household PV investments, self-consumption and self-sufficiency? By Bertsch, Valentin; Geldermann, Jutta; Lühn, Tobias
  10. Do Announcements of WTO Dispute Resolution Cases Matter? Evidence from the Rare Earth Elements Market By Juliane Proelss; Denis Schweizer; Volker Seiler
  11. Wind Power: Mitigated and Imposed External Costs and Other Indirect Economic Effects By Alexander Zerrahn
  12. Opportunity Cost Pass-through from Fossil Fuel Market Prices to Procurement Costs of the U.S. Power Producers By Yin Chu; J. Scott; Jacob LaRiviere
  13. Utilities Included: Split Incentives in Commercial Electricity Contracts By Katrina Jessoe; Maya M. Papineau; David Rapson
  14. The impact of energy taxes on the affordability of domestic energy By Florens Flues; Kurt van Dender
  15. Energy Consumption and Regional Economic Growth: The Case of Iranian Manufacturing Sector By Cheratian, Iman; Goltabar, Saleh
  16. Geographical Dispersion of Consumer Search Behavior By Hakan Yilmazkuday
  17. Energy Price Uncertainty and Decreasing Pass-through to Core Inflation By Ahmed Jamal Pirzada
  18. “Acelerador financiero, impacto del precio del gas” By Valdivia Coria, Joab Dan
  19. OPEC, Saudi Arabia, and the Shale Revolution: Insights from Equilibrium Modelling and Oil Politics By Ansari, Dawud
  20. Risk assessment of oil price from static and dynamic modelling approaches By Zhi-Fu Mi; Yi-Ming Wei; Bao-Jun Tang; Rong-Gang Cong; Hao Yu; Hong Cao; Dabo Guan
  21. Asymmetric Incidence of Sales Taxes: A Short-Run Investigation of Gasoline Prices By Hakan Yilmazkuday
  22. 국제유가 하락과 한ㆍ중동 협력방안: GCC 산유국을 중심으로 (Lower Oil Prices and Economic Cooperation between Korea and the Middle East) By Lee , Kwon Hyung; Son , Sung Hyun; Jang , Yun Hee; Ryou, Kwang Ho
  23. Dependence on extractive industries in lower-income countries: The statistical tendencies By Alan Roe; Samantha Dodd
  24. Risk and Performance of SapuraKencana Petroleum Berhad By Jamalludin, Nadia
  25. Oil, Volatility and Institutions: Cross-Country Evidence from Major Oil Producers By El-Anshasy, Amany; Mohaddes, Kamiar; Nugent, Jeffrey B.
  26. Risk and Performance: Empirical Evidence from Yinson Holdings Berhad By Khalid, Nuramalina
  27. Socioeconomic impact assessment of China's CO2 emissions peak prior to 2030 By Zhi-Fu Mi; Yi-Ming Wei; Bing Wang; Jing Meng; Zhu Liu; Yuli Shan; Jingru Liu; Dabo Guan
  28. Calculations of gaseous and particulate emissions from German agriculture 1990-2015: Report on methods and data (RMD) submission 2017 By Rösemann, Claus; Haenel, Hans-Dieter; Dämmgen, Ulrich; Freibauer, Annette; Döring, Ulrike; Wulf, Sebastian; Eurich-Menden, Brigitte; Döhler, Helmut; Schreiner, Carsten; Osterburg, Bernhard
  29. The Shadow Price of CO2 Emissions in China's Iron and Steel Industry By Ke Wang; Linan Che; Chunbo Ma; Yi-Ming Wei
  30. Assessment on the research trend of low-carbon energy technology investment: A bibliometric analysis By Hao Yu; Yi-Ming Wei; Bao-Jun Tang; Zhifu Mi; Su-Yan Pan
  31. Enhancing transparency of climate change mitigation under the Paris Agreement: Lessons from experience By Gregory Briner; Sara Moarif
  32. Enhancing transparency of climate finance under the Paris Agreement: Lessons from experience By Jane Ellis; Sara Moarif
  33. Possible structure of mitigation-related modalities, procedures and guidelines for the enhanced transparency framework By Gregory Briner; Sara Moarif
  34. 기후변화 대응을 위한 국제사회의 지원체제 비교연구 (Comparative Analysis on Climate Support: Key Findings and Implications) By Jung , Jione; Kwon , Yul; Moon , Jin-Young; Lee , Juyoung; Song , Jihei

  1. By: Alec Brandon; Paul J. Ferraro; John A. List; Robert D. Metcalfe; Michael K. Price; Florian Rundhammer
    Abstract: This study examines the mechanisms underlying long-run reductions in energy consumption caused by a widely studied social nudge. Our investigation considers two channels: physical capital in the home and habit formation in the household. Using data from 38 natural field experiments, we isolate the role of physical capital by comparing treatment and control homes after the original household moves, which ends treatment. We find 35 to 55 percent of the reductions persist once treatment ends and show this is consonant with the physical capital channel. Methodologically, our findings have important implications for the design and assessment of behavioral interventions.
    Keywords: energy efficiency, field experiments, nudges, persistence
    JEL: C93 D01 D03 Q30
    Date: 2017–04
  2. By: Antonio Bento; Kenneth Gillingham; Kevin Roth
    Abstract: The firm response to regulation is seldom as controversial as in the context of fuel economy standards, a dominant policy to reduce emissions from vehicles worldwide. It has long been argued that such standards lead to vehicle weight changes that increase accident fatalities. Using unconditional quantile regression, we are the first to document the effect of the Corporate Average Fuel Economy (CAFE) standards on the vehicle weight distribution. We find that on net CAFE reduced fatalities, with lowered mean weight dominating increased dispersion. When monetized, this effect suggests positive net benefits from CAFE even with no undervaluation of fuel economy.
    JEL: H23 I18 Q48 Q58 R41
    Date: 2017–04
  3. By: Broberg, Thomas (CERE and the Department of Economics, Umeå University); Egüez, Alejandro (CERE and the Department of Economics, Umeå University)
    Abstract: Institutional structures may cause considerable inefficiencies in the use of energy. In this paper, we investigate the energy efficiency of multi-dwelling buildings in Sweden to find out whether the type of ownership matters. More specifically, we investigate whether rental apartment buildings are less efficient than cooperative apartment buildings and whether public ownership has a negative impact on energy efficiency. A conceptual framework is presented to illustrate that such differences could be explained by the split incentive problem and deviations from profit maximizing interests. The empirical analysis is based on a unique dataset that combines data from energy performance certificates with ownership data on residential units. The results indicate that cooperative apartment buildings are significantly more energy efficient than buildings with rental apartments. The results also indicate that publicly owned buildings have lower energy performance than privately owned ones.
    Keywords: Energy efficiency; Energy performance certificates; Multi-dwelling buildings; Split incentives; Public versus private management; Profit satisficing
    JEL: Q41 Q48
    Date: 2017–04–19
  4. By: John A. List; Robert D. Metcalfe; Michael K. Price; Florian Rundhammer
    Abstract: The literature has shown the power of social norms to promote residential energy conservation, particularly among high usage users. This study uses a natural field experiment with nearly 200,000 US households to explore whether a financial rewards program can complement such approaches. We observe strong impacts of the program, particularly amongst low-usage and lowvariance households, customers who typically are less responsive to normative messaging. Our data thus suggest important policy complementarities between behavioral and financial incentives: whereas non-pecuniary interventions disproportionately affect intense users, financial incentives are able to substantially affect the low-user, sticky households.
    Keywords: social norms, financial incentives, energy conservation, field experiment
    JEL: C93 Q4 D03
    Date: 2017–05
  5. By: Rosellon, Maureen Ane D.
    Abstract: The Philippines enacted two legislations to promote renewable energy (RE) deployment (i.e., Renewable Energy Act of 2008 and the Biofuels Act of 2006) in recognition of the advantages of the use of RE as energy source. However, there remain issues and criticisms on the promotion of RE technologies and on the implementation of the RE laws. Both sides of the debate have their justifications for supporting or not supporting the use of RE resources and technologies. The implementation of the RE laws, rules, and regulations has also been receiving criticisms. For this paper, data and information on the areas of debate were collected and examined. Findings provide some reference for revisiting the RE laws and regulations to improve their implementation and produce better outcomes for stakeholders.
    Keywords: Philippines, regulations, renewable energy, policy debate, Philippine Renewable Energy Act, Philippine Biofuels Act, energy source, laws
    Date: 2017
  6. By: Tangerås, Thomas (Research Institute of Industrial Economics (IFN))
    Abstract: An increasing reliance on solar and wind power has raised concern about system ability to consistently satisfy electricity demand. This paper examines countries’ unilateral incentives to achieve supply security through capacity reserves and market integration in a multinational electricity market. Capacity reserves protect consumers against blackouts and extreme prices, but distort consumption and investment. Market integration alleviates supply constraints, but requires costly network reinforcement. Capacity reserves can be up- or downward distorted, but network investment is always insufficient in equilibrium. Capacity reserves are smaller when there are fi…nancial markets or when dispatched solely to resolve domestic supply constraints.
    Keywords: Capacity mechanism; Decentralized policy making; Multinational electricity market; Network investment; Security of supply
    JEL: D24 H23 L94 Q48
    Date: 2017–04–11
  7. By: Pedro I. Hancevic; Hector M. Nunez; Juan Rosellón
    Abstract: Mexico plans to implement a national program to support the adoption of distributed photo-voltaic generation (DPVG) among qualified households. The main objectives of such a program would be to reduce the burden of the substantial federal energy subsidy and increase the share of renewable energy sources used to generate electricity. In this paper we assess the current conditions under which the Mexican residential electricity sector operates, and quantify the potential effects that the massive adoption of DPV systems would have on household expenditure and welfare, subsidy reduction, pollution and water resource usage. Based on the positive results in terms of both economic and environmental effects, our paper provides a significant support for further design and implementation of a DPVG program.
    Keywords: distributed solar photovoltaic generation, residential electricity consumption, energy subsidies, air pollution, water resource usage
    JEL: Q28 Q42 Q53
    Date: 2017
  8. By: Zhaohua Wang; Yi Li; Ke Wang; Zhimin Huang
    Abstract: There is widespread concern that environmental factor may not be playing a pivotal role in influencing the generation performance of solar photovoltaic (PV) plants. The aim of this paper is to provide a fair and impartial operational performance evaluation of solar PV power plants taking into account of the impacts of environmental factors from real field data. Stochastic frontier analysis (SFA) is used to attribute the impacts of environmental factors (temperature, cloud amount, elevation, wind speed and precipitation) on inputs (like insolation and daylight hours) of solar PV power plants; while data envelopment analysis (DEA) is used to compute the environment-adjusted operational efficiency of these plants. SFA is utilized in the adjustment process for its merit of separating statistical noise from the error term, and DEA is used for its advantage of capturing the interaction among multiple inputs and outputs in a scalar value. The empirical analysis shows that the average operational efficiency of 70 grid-connected solar PV power plants in the United States slightly declines after accounting the impacts of environmental factors and statistical noise. Finally, the results partially support the initial concern from the statistical perspective and temperature is found to be the most significant influencing environmental factor, while precipitation and wind speed show no significant influence on operational efficiency. Therefore, the necessity of accounting for the impacts of environmental factors in the performance evaluation of solar PV power plants should not be omitted.
    Keywords: Solar PV power plants; Environmental factors; Data envelopment analysis; Slacks; Stochastic frontier analysis
    JEL: Q54 Q40
    Date: 2017–04–03
  9. By: Bertsch, Valentin; Geldermann, Jutta; Lühn, Tobias
    Abstract: Many countries introduced subsidy schemes that were successful in incentivising investments into residential solar PV. The resulting growth of the global PV market was accompanied by cost reductions for PV systems, reductions of PV subsidies and, often, increasing electricity retail prices. Along with decreasing costs for battery storages, these developments made self-consumption and self-sufficiency continuously more attractive. However, the profitability of PV-storage systems depends on many factors, including technological, political and geographical aspects. We present a simulation model to identify the most profitable sizes of PV and storage systems from a household perspective and explore what drives the profitability of self-consumption and self-sufficiency. We compare and contrast Germany and Ireland to account for regulatory and geographical differences. Our results show that PV-storage systems are generally profitable in Germany and that, after minor technology cost reductions, this result holds even in the absence of subsidies. In Ireland, such systems are not yet profitable but this may change soon with expected technology costs reductions. The share of electricity demand that will be required from the grid may be reduced to 25-35%. Implications for the electricity retail business and policy makers are discussed including distributional concerns and system efficiency considerations.
    Keywords: Solar PV, self-consumption, self-sufficiency, battery storage
    JEL: C63 Q41 Q42 Q48
    Date: 2017–04–12
  10. By: Juliane Proelss (Concordia University); Denis Schweizer (Concordia University); Volker Seiler (Paderborn University)
    Abstract: Rare earth elements (REEs) have gained increasing attention recently for several key reasons: 1) they are vital to many strategic industries, 2) they are relatively scarce, 3) they frequently exhibit high price fluctuations, 4) China holds a quasi-monopoly on their mining, and 5) China’s REE policy, which was overly restrictive and led to a formal complaint from the U.S., Japan, and the EU at the World Trade Organization (WTO) in 2012. This paper investigates whether the announcement of a WTO dispute resolution case has the power to fundamentally change market dynamics. We find empirical support for this notion, because REE prices exhibit a structural break around the announcement of the WTO dispute, and show lower variance ratios for all tested REEs afterward. This indicates a tendency toward efficiency, although REE prices still do not follow a random walk. Similarly, we find that the stock price informativeness of companies in the REE industry increases after the announcement, reflecting more firm-specific than marketwide information and less governmental influence. Finally, we show that the model uncertainty for option pricing models decreases, which we measure by the lower pricing differences among them.
    Keywords: Market Efficiency, Rare Earth Elements, Stock Price Informativeness, Structural Break Tests, Variance Ratio Tests, World Trade Organization (WTO)
    JEL: C22 C58 F13 G14 G18 G28 Q02 Q38
    Date: 2017–04
  11. By: Alexander Zerrahn
    Abstract: Since the 1990s, (onshore) wind power has become an important technology for electricity generation throughout the world. The economic rationale is the mitigation of negative externalities of conventional technologies, in particular emissions from fossil fuel combustion. However, wind power itself is not free of externalities. Wind turbines are alleged visual and noise impacts as well as threats to wildlife. Further indirect economic effects comprise costs for integrating variable wind electricity into the power system. Economic outcomes, such as employment and GDP, can be positively or negatively affected both locally and nationally. This Roundup summarizes evidence from multiple literatures on mitigated and imposed external costs and further indirect economic effects.
    Date: 2017
  12. By: Yin Chu (Zhongnan University of Economics and Law); J. Scott (Department of Economics, University of Tennessee); Jacob LaRiviere (Department of Economics, University of Tennessee and Microsoft)
    Abstract: This paper investigates the transmission of fossil fuel commodity spot market price changes to procurement costs of U.S. power producers. We measure and compare the speed and magnitude with which spot prices predict procurement costs using restricted access fuel price data. Natural gas spot prices are quickly reflected in procurement costs. Coal spot prices offer very little predictive power to coal procurement costs. Although not causal, the empirical results also show differences across regulatory status. These findings may have implications for the electricity market deregulation literature that creates marginal cost curves as a competitive benchmark.
    Keywords: electric power industry; fossil fuel market; pass-through; deregulation; asymmetric price adjustment
    JEL: D40 L51 L94
    Date: 2017–02
  13. By: Katrina Jessoe (Department of Agricultural and Resource Economics, University of California, Davis); Maya M. Papineau (Department of Economics, Carleton University); David Rapson (Department of Economics, University of California, Davis)
    Abstract: The largest decile of commercial electricity customers comprises half of commercial sector electricity usage. We quantify a substantial split incentives problem that exists when these large firms are on electricity-included property lease contracts. Using exogenous variation in weather shocks, we show that customers on tenant-paid contracts use 6-14% less electricity in summer months. The policy implications are promising. Nationwide energy savings from aligning incentives for the largest 10% of commercial customers exceeds analogous savings from the entire residential electricity sector. It is also cost-effective: switching to tenant-paid contracts via sub-metering has a private payoff period of under one year.
    Keywords: Electricity; Principal-Agent Problem; Contracts
    JEL: D22 L14 Q51
    Date: 2017–05–01
  14. By: Florens Flues; Kurt van Dender
    Abstract: Energy affordability can be defined as a household’s ability to pay for necessary levels of energy use within normal spending patterns. This paper uses three indicators to measure energy affordability risk in 20 OECD countries. Energy affordability risk differs widely between countries. The countries with the highest GDP per capita tend to have the lowest levels of energy affordability risk. The paper then analyses how indicators of energy affordability change in response to a hypothetical tax reform that increases taxes on natural gas, heating oil and electricity in most countries analysed. Results show that, if combined with an income-tested cash transfer using one third of the change in revenue resulting from the tax reform, the reform generally improves energy affordability. If combined with a lump-sum transfer instead, results show that energy affordability increases only according to the most selective of the three indicators.
    Keywords: carbon pricing, distributional effects, energy affordability, energy poverty, energy taxation
    JEL: H23 I32 I38 Q48 Q52
    Date: 2017–05–11
  15. By: Cheratian, Iman; Goltabar, Saleh
    Abstract: The relationship between energy consumption and economic growth has undergone extensive investigation and the empirical evidences are mixed ranging from bi- and uni-directional causality to no causality. These conflicts may be due to the fact that countries have different energy consumption patterns and various sources of energy. This paper is the first study on causal relationships between industrial energy consumption and real regional economic growth based on the panel data for 31 provinces in Iran over the period 2004–2014. We employ the GMM-SYS approach for the estimation of the panel vector autoregression (PVAR) model. Afterwards, by doing an in-depth analysis of energy consumption data, the purpose of this paper is to contribute to the debate by examining the causality in various forms of energy consumption (Diesel fuel, Natural Gas, Gasoline, Kerosene, LPG&LNG, Petroleum and Electricity). We discover: (a) totally, there is bidirectional causality between industrial energy consumption and regional growth; (b) regional growth leads to Gasoline consumption; (c) Natural gas consumption leads to regional growth; (d) there exists no causal relationship between regional growth and Diesel fuel, Kerosene, LPG&LNG and Petroleum consumption; (e) there is also bidirectional causality between industrial electricity consumption and regional economic growth. Taken together, the results of this study involve valuable information for policy makers at regional level.
    Keywords: Energy consumption, GDP PerCapita, Manufacturing sector, Causality, Panel VAR, Iran.
    JEL: C33 L60 N55 O13 Q43 R11
    Date: 2017–04–15
  16. By: Hakan Yilmazkuday (Department of Economics, Florida International University)
    Abstract: This paper investigates whether consumer search behavior differs across zip codes within the U.S.. As an application, daily gasoline price data covering virtually all gas stations within the U.S. are employed to estimate the distribution of search costs in each zip code. The results show that there are significant differences across zip codes regarding the expected number of searches achieved before consumers purchase gasoline. In order to have a systematic explanation, such differences are further connected to geographic, demographic and economic conditions of the zip codes in a secondary analysis. The corresponding results imply several strategies for gas stations in order to maximize profits/markups; suggestions follow for policy makers and regulators to reduce redistributive effects of information barriers across locations.
    Keywords: Consumer Search, Price Dispersion, Retail Gasoline
    JEL: D12 D83 L81
    Date: 2017–04
  17. By: Ahmed Jamal Pirzada
    Abstract: This paper uses an extended version of the New Keynesian model to provide an alternate explanation for the decrease in energy price pass-through to core inflation. The results show that in a model in which energy goods are consumed by households, uncertain energy prices decrease firms’ responsiveness to an increase in the energy price. This is because uncertain energy prices increase the precautionary savings motive of households. Since firms expect demand for finished consumption goods to contract more, they increase their prices by less. When energy prices are highly uncertain, instead of increasing prices, firms decrease their prices following a positive energy price shock.
    Keywords: Energy Prices, Uncertainty, Inflation, Monetary Policy, DSGE.
    JEL: E31 E52 E58
    Date: 2017–04–13
  18. By: Valdivia Coria, Joab Dan
    Abstract: A general equilibrium model was developed for a small and open economy with financial frictions in order to analyze the effects of monetary policy and fiscal policy in Bolivia on certain variables such as: GDP, Consumption, Investment, interest rates Inflation The results were obtained from cyclical contraction effects of the Taylor rule on inflation. The estimation was made for the time periods 2000 - 2005 and 2006 - 2015 through Bayesian econometrics. A different response is evident in both periods of time, in fiscal spending and the price of natural gas.
    Keywords: Bayesian estimation, Fiscal Expenditure, Financial Frictions, Dynamic Stochastic General Equilibrium Model (DSGE).
    JEL: E42 E58 E62 E63
    Date: 2016–10
  19. By: Ansari, Dawud
    Abstract: Why did OPEC not cut oil production in the wake of 2014’s price fall? This study aims at aiding the mostly qualitative discussion with quantitative evidence from computing quarterly partial market equi-libria Q4 2011 – Q4 2015 under present short-term profit maximisation and different competition set-ups. Although the model performs reasonably well in explaining pre-2014 prices, all setups fail to cap-ture low prices, which fall even beyond perfect competition outcomes. This result is robust with respect to large variations in cost parameters. Rejecting present short-term profit maximisation, as well as a qualitative discussion of Saudi Arabian politics and the shale oil revolution, lead to the conclusion that the price drop of 2014-16 was most plausibly the result of an attempt to defend market shares and to test for shale oil resilience, besides being fuelled by other factors such as tightening climate policies. Although shale oil might have increased competition permanently (as supported by model results), the agreement of December 2016 should not be misunderstood as an OPEC defeat.
    Keywords: Crude oil; OPEC; Shale oil; Oil price; Equilibrium modelling; Saudi Arabia; Shale revolution
    JEL: C61 C63 L13 L71 O53 Q31 Q35
    Date: 2017–04–01
  20. By: Zhi-Fu Mi; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology); Bao-Jun Tang; Rong-Gang Cong; Hao Yu; Hong Cao; Dabo Guan
    Abstract: The price gap between West Texas Intermediate (WTI) and Brent crude oil markets has been completely changed in the past several years. The price of WTI was always a little larger than that of Brent for a long time. However, the price of WTI has been surpassed by that of Brent since 2011. The new market circumstances and volatility of oil price require a comprehensive re-estimation of risk. Therefore, this study aims to explore an integrated approach to assess the price risk in the two crude oil markets through the Value at Risk (VaR) model. The VaR is estimated by the extreme value theory (EVT) and GARCH model on the basis of Generalized Error Distribution (GED). The results show that EVT is a powerful approach to capture the risk in the oil markets. On the contrary, the traditional Variance-Covariance and Monte Carlo approaches tend to overestimate risk when the confidence level is 95%, but underestimate risk at the confidence level of 99%. The VaR of WTI returns is larger than that of Brent returns at identical confidence levels. Moreover, the GED-GARCH model can estimate the downside dynamic VaR accurately for the WTI and Brent oil returns.
    Keywords: Value at risk; GED-GARCH; Extreme value theory; Risk quantification; oil markets
    JEL: Q54 Q40
    Date: 2017–04–01
  21. By: Hakan Yilmazkuday (Department of Economics, Florida International University)
    Abstract: This paper investigates the shifting of sales taxes to consumers through retail prices in the short run. Retail data on gasoline prices are used at the station level within the U.S., including observations from all fifty states and the District of Columbia. A difference-in-differences approach is employed to identify the short-run effects of the changes in state taxes as of January 1st, 2015, when five states have increased their gasoline sales taxes, while five other states have decreased theirs. States experiencing such changes in sales taxes (between December 31st, 2014 and January 1st, 2015) are analyzed as the treatment group of a natural policy experiment, where the control group consists of states with no changes in their sales taxes. The results show that both sales-tax increases and decreases are under-shifted to consumer prices, although the under-shifting of sales-tax decreases is much higher (i.e., the asymmetric incidence of sales taxes). The pass-through measures also differ significantly across states, showing the importance of having a nationwide analysis. The results are robust to the consideration of retailer characteristics, wholesale prices, retail brand effects and hourly price changes within each day.
    Keywords: Tax Incidence, Gasoline Prices, Gas-Station Level Analysis
    JEL: H22 H73
    Date: 2017–03
  22. By: Lee , Kwon Hyung (Korea Institute for International Economic Policy); Son , Sung Hyun (Korea Institute for International Economic Policy); Jang , Yun Hee (Korea Institute for International Economic Policy); Ryou, Kwang Ho (Korea Institute for International Economic Policy)
    Abstract: Korean Abstract: 본 연구는 최근 국제유가 하락에 따라 한ㆍ중동 경제협력이 위축될 것이라는 우려가 있지만, 유가 하락이 중동 산유국에는 오히려 경제 체질을 개선할 수 있는 기회가 될 수 있고, 우리는 이러한 기회요인을 적극적으로 활용하여 향후 한ㆍ중동 동반성장을 위한 지속적인 경협관계를 만들어나가야 한다는 점을 제시한다는 데 의의가 있다. English Abstract: The aim of the research is to suggest economic cooperation framework between Korea and the Middle East in the times of lower oil prices. A rapid decline of oil prices since the second half of 2014 has negatively impacted on economy of the GCC(Gulf Cooperation Council) countries which heavily depend on oil and gas sector. GCC countries are facing economic recession with the worsening of the financial situation, lack of liquidity and decrease of investment. The sharp drop in oil revenues due to lower oil prices caused government fiscal distress and made the GCC countries use accumulated foreign exchange reserves and sovereign wealth fund. They also prioritize projects focusing on social infrastructure including education and public services, leading to decrease of number of project contracts awarded in the GCC region. In response to the economic slowdown and fiscal burden, GCC countries have strengthened policy measures for economic diversification. They have promoted various supporting policies to nurture their strategic industries - most notably the renewable energy sector - and competitive small and medium-sized enterprises in the region. In order to regain fiscal soundness, GCC countries have been trying to cut their energy subsidies and revise the tax system, expanding government loans and privatization of their state-owned companies than the past. Moreover, they are making more efforts to increase foreign direct investment inflows with improvement of business environment and PPP(Public-Private Partnership) procedures. The economic difficulties facing the GCC countries due to lower oil prices is causing a significant concern over dwindling economic cooperation between Korea and the GCC countries. In response to this, a new cooperation framework is needed to strengthen bilateral ties for shared growth. Four fields of cooperation can be identified as follows. First, industrial cooperation should be reinforced to expand economic diversification and job creation in the GCC countries. Second, energy cooperation should be broadened into the fields of renewable energy development and energy efficiency technology other than energy trade. Third, investment cooperation need to be strengthened to facilitate joint investment in the region including joint ventures. Fourth, institutional cooperation between governments is needed to share Korean institutional reforms in the fields of tax, subsidy, privatization, FDI and so on, deepening mutual understanding of economic partners for co-development.
    Date: 2016–12–30
  23. By: Alan Roe; Samantha Dodd
    Abstract: This paper synthesizes statistical information evidencing the proposition that extractive industries are of great significance in many low- and middle-income developing economies. It examines the scale of the current dependence of low- and middle-income economies on both types of extractive resources: metals, and oil and gas. The paper also assesses how country levels of dependence have changed in the past twenty years, showing that there has been a clear upward trend. The paper outlines how the upward trend has continued in many countries despite the recent commodity price collapse, and assesses some of the consequences of that collapse.
    Date: 2017
  24. By: Jamalludin, Nadia
    Abstract: The purpose of this study is to examine the overall performance of SapuraKencana as an oil and gas in industry in Malaysia. The overall performance is being measured from 2011 to 2015 as measuring liability, operational and liquidity performance. These three performances are important for this company as this kind of industry is growing fast. The most significant one is liquidity performance where it contains of measurement of how well company in generating profit through its assets. Relationships of these three performances with GDP are also measured using SPSS in creating correlation and Annova in order to see the significant result. In order to find the result, most of the data output in SPSS is included ROA as dependent variable.
    Keywords: Performance, liquidity, measurement, profit
    JEL: G17 G23
    Date: 2017–04–16
  25. By: El-Anshasy, Amany (United Arab Emirates University); Mohaddes, Kamiar (University of Cambridge); Nugent, Jeffrey B. (University of Southern California)
    Abstract: This paper examines the long-run effects of oil revenue and its volatility on economic growth as well as the role of institutions in this relationship. We collect annual and monthly data on a sample of 17 major oil producers over the period 1961-2013, and use the standard panel autoregressive distributed lag (ARDL) approach as well as its cross-sectionally augmented version (CS-ARDL) for estimation. Therefore, in contrast to the earlier literature on the resource curse, we take into account all three key features of the panel: dynamics, heterogeneity and cross-sectional dependence. Our results suggest that (i) there is a significant negative effect of oil revenue volatility on output growth, (ii) higher growth rate of oil revenue significantly raises economic growth, and (iii) better fiscal policy (institutions) can offset some of the negative effects of oil revenue volatility. We therefore argue that volatility in oil revenues combined with poor governmental responses to this volatility drives the resource curse paradox, not the abundance of oil revenues as such.
    JEL: C23 E02 F43 O13 Q32
    Date: 2017–04–01
  26. By: Khalid, Nuramalina
    Abstract: The purpose of this study is to analyse the overall performance of Yinson Holdings Berhad which represents one of the company’s in oil and gas industry. The data collected from annual report of Yinson holdings Berhad starting from 2011 to 2015. The measurement of credit, operating, and liquidity were used to see the overall performance of Yinson holdings Berhad in 5 years. These three performance are important for this study as oil and gas industry is important in a country as primary resources. The most significant to view how well this company generating profitability through its assets is liquidity performance. Liquidity performance shows the movement of ROA, ROE, and profit margin Yinson Holdings berhad from 2011 to 2015. Moreover, this study will shows the relationship between these three performance and GDP by using SPSS in creating correlation in order to see the significant result.
    Keywords: Liability performance, operational performance, and liquidity performance.
    JEL: G0 G1
    Date: 2017–04–16
  27. By: Zhi-Fu Mi; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology); Bing Wang; Jing Meng; Zhu Liu; Yuli Shan; Jingru Liu; Dabo Guan
    Abstract: China is the largest emitter of carbon emissions in the world. In this paper, we present an Integrated Model of Economy and Climate (IMEC), an optimization model based on the input-output model. The model is designed to assess the tradeoff between emission deceleration and economic growth. Given that China's projected average growth rate will exceed 5% over the next two decades, we find that China may reach its peak CO2 emissions levels by 2026. According to this scenario, China's carbon emissions will peak at 11.20 Gt in 2026 and will then decline to 10.84 Gt in 2030. Accordingly, approximately 22 Gt of CO2 will be removed from 2015 to 2035 relative to the scenario wherein China¡¯s CO2 emissions peak in 2030. While this earlier peaking of carbon emissions will result in a decline in China's GDP, several sectors, such as Machinery and Education, will benefit. In order to reach peak CO2 emissions by 2026, China needs to reduce its annual GDP growth rate to less than 4.5% by 2030 and decrease energy and carbon intensity levels by 43% and 45%, respectively, from 2015 to 2030.
    Keywords: carbon emissions; peak; input-output; optimization model; integrated assessment model; China
    JEL: Q54 Q40
    Date: 2017–04–02
  28. By: Rösemann, Claus; Haenel, Hans-Dieter; Dämmgen, Ulrich; Freibauer, Annette; Döring, Ulrike; Wulf, Sebastian; Eurich-Menden, Brigitte; Döhler, Helmut; Schreiner, Carsten; Osterburg, Bernhard
    Abstract: The report at hand (including a comprehensive annex of data) serves as additional document to the National Inventory Report (NIR) on the German green house gas emissions and the Informative Inventory Report (IIR) on the German emissions of air pollutants (especially ammonia). The report documents the calculation methods used in the German agricultural inventory model GAS-EM as well as input data, emission results and uncertainties of the emission reporting submission 2017 for the years 1990 - 2015. In this context the sector Agriculture comprises the emissions from animal husbandry, the use of agricultural soils and anaerobic digestion of energy crops. As required by the guidelines, emissions from activities preceding agriculture, from the use of energy and from land use change are reported elsewhere in the national inventories. The calculation methods are based in principle on the international guidelines for emission reporting and have been continuingly improved during the past years by the Thünen Institute working group on agricultural emission inventories, partly in cooperation with KTBL. In particular, these improvements concern the calculation of energy requirements, feeding and the N balance of the most important animal categories. In addition, technical measures such as air scrubbing (mitigation of ammonia emissions) and digestion of animal manures (mitigation of emissions of methane and loughing gas) have been taken into account. For the calculation of emissions from anaerobic digestion of animal manures and energy crops (including spreading of the digestate), the aforementioned working group developed, in cooperation with KTBL, a national methodology. [...]
    Keywords: emission inventory,agriculture,animal husbandry,agricultural soils,anaerobic digestion,energy crops,renewable primary products,greenhouse gases,air pollutants,methane,loughing gas,ammonia,particulate matter,Emissionsinventar,Landwirtschaft,Tierhaltung,landwirtschaftliche Böden,anaerobe Vergärung,Energiepflanzen,nachwachsende Rohstoffe,Treibhausgase,Luftschadstoffe,Methan,Lachgas,Ammoniak,luftgetragene Partikel
    Date: 2017
  29. By: Ke Wang; Linan Che; Chunbo Ma; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology)
    Abstract: As China becomes the world¡¯s largest energy consumer and CO2 emitter, there has been a rapidly emerging literature on estimating China's abatement cost for CO2 using a distance function approach. However, the existing studies have mostly focused on the cost estimates at macro levels (provinces or industries) with few examining firm-level abatement costs. No work has attempted to estimate the abatement cost of CO2 emissions in the iron and steel industry. Although some have argued that the directional distance function (DDF) is more appropriate in the presence of bad output under regulation, the choice of directions is largely arbitrary. This study provides the most up-to-date estimate of the shadow price of CO2 using a unique dataset of China's major iron and steel enterprises in 2014. The paper uses output quadratic DDF and investigates the impact of using different directional vectors representing different carbon mitigation strategies. The results show that the mean CO2 shadow price of China's iron and steel enterprises is very sensitive to the choice of direction vectors. The average shadow prices of CO2 are 407, 1226 and 6058 Yuan/tonne respectively for the three different direction vectors. We also find substantial heterogeneity in the shadow prices of CO2 emissions among China's major iron and steel enterprises. Larger, listed enterprises are found to be associated lower CO2 shadow prices than smaller, unlisted enterprises.
    Keywords: Directional distance function; Marginal abatement cost; Shadow price; Iron and steel; CO2 emissions; Heterogeneity
    JEL: Q54 Q40
    Date: 2017–04–05
  30. By: Hao Yu; Yi-Ming Wei (Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology); Bao-Jun Tang; Zhifu Mi; Su-Yan Pan
    Abstract: Based on databases of Science Citation Index Expanded (1981-present) and Social Sciences Citation Index (2002-present), this paper applies the bibliometric method to analyze the scientific publications of low-carbon energy technology investment. By characterizing the basic information of the publications, we found: the historical development process is clearly divided into two stages; the field of low-carbon energy technology investment has entered a stage of rapid development; the strength of developed countries is far greater than that of developing countries; the comprehensive strength of the United States ranks the first in the field, followed by UK and Denmark and only China and Turkey are developing countries among the top 15 countries; the auctorial collaboration degree in this field shows a clear upward trend, but institutional and national collaboration degrees are steady and relatively low. In addition, distributions of geography, journals and subjects, productive authors and institutions, frequently cited articles, etc. are obtained: articles in this area are mainly distributed in the USA, several countries in Europe and China; the most productive journal, author and institution are Energy Policy, Lund H from Denmark and National Technical University of Athens in Greece; Energy Fuel is the most popular subject among all the outcomes; the most frequently cited article is written by Demirbas published in Energy Policy in 2007. According to the frequency analysis of keywords, it reveals that: "renewable energy" is a kind of keyword used most frequently; "carbon capture and storage technology" is an emerging keyword which is increasingly concerned about; scholars pay widespread attention to electricity issues, especially the feed-in tariff; the policy mainly includes energy policy and climate policy; the real option theory is the most widely used theory; the existing uncertainty is summarized as the cost uncertainty and policy uncertainty. In the end, several suggestions for the future research are given.
    Keywords: Low-carbon energy technology; Energy investment; Bibliometric; Frequency analysis
    JEL: Q54 Q40
    Date: 2017–04–06
  31. By: Gregory Briner; Sara Moarif
    Abstract: An enhanced transparency framework will be a central component of the post-2020 international climate policy regime under the Paris Agreement, underpinning the dynamic process of updating nationally determined contributions (NDCs) and providing input to the global stocktakes of progress towards the long-term goals of the Paris Agreement. The enhanced transparency framework will apply to all Parties, with flexibility in light of capacities. This paper highlights lessons learned from the existing transparency framework for mitigation that can help inform the development of modalities, procedures and guidelines for the enhanced transparency framework under the Paris Agreement. It outlines how clearer and more detailed reporting guidelines could be developed for communication of the mitigation components of NDCs and reporting on progress in their implementation and achievement, based on NDC type.
    Keywords: climate change, mitigation, transparency, UNFCCC
    JEL: F53 Q54 Q56 Q58
    Date: 2017–05–03
  32. By: Jane Ellis; Sara Moarif
    Abstract: An enhanced transparency framework will be a central component of the post-2020 international climate policy regime under the Paris Agreement. This paper explores the issue of transparency of climate finance information in the context of climate finance goals under the United Nations’ Framework Convention on Climate Change (UNFCCC). The transparency framework of the Paris Agreement covers only a subset of climate finance, i.e. finance provided and mobilised by developed countries for developing countries, climate finance provided and mobilised by “other” countries for developing countries, as well as climate finance received by developing countries. This paper focuses on data collection, reporting and review of these elements, and explores how the transparency of information on climate finance provided and mobilised could be improved from current arrangements in order to meet the aims set out in the Paris Agreement.
    Keywords: climate change, climate finance, transparency, UNFCCC
    JEL: F53 O44 Q54 Q56 Q58
    Date: 2017–05–03
  33. By: Gregory Briner; Sara Moarif
    Abstract: Article 13 of the Paris Agreement, agreed at the 21st Conference of the Parties to the United Nations Framework Convention on Climate Change (UNFCCC) in December 2015, calls for the adoption of an enhanced transparency framework for both mitigation action and support. This note presents a possible structure for the modalities, procedures and guidelines for the mitigation-related aspects of the enhanced transparency framework. The scope of the note includes reporting, technical expert review and multilateral consideration of progress, taking into account lessons learned from experience with reporting, review and other relevant processes under the UNFCCC and the Kyoto Protocol. The note aims to serve as a helpful reference for UNFCCC transparency negotiators, by flagging issues that will need to be addressed when Parties develop modalities, procedures and guidelines in this area, and by providing links to existing provisions or guidance for each topic.
    Keywords: climate change, mitigation, transparency, UNFCCC
    JEL: F53 Q54 Q56 Q58
    Date: 2017–05–03
  34. By: Jung , Jione (Korea Institute for International Economic Policy); Kwon , Yul (Korea Institute for International Economic Policy); Moon , Jin-Young (Korea Institute for International Economic Policy); Lee , Juyoung (Korea Institute for International Economic Policy); Song , Jihei (Korea Institute for International Economic Policy)
    Abstract: Korean Abstract: 2020년 이후 전개될 새로운 기후변화 대응체제에 대한 합의가 2015년 말 파리 당사국총회(COP21)에서 도출될 예정이다. 교토의정서 이후 처음으로 법적 성격을 지닌 결과물이 채택된다는 점에서 파리 당사국총회는 기후변화에 관한 국제적 논의에서 매우 중요한 모멘텀으로 작용할 것이 분명하다. 신기후체제의 핵심은 모든 국가가 온실가스 감축 부담을 진다는 점이다. 주요 국가들은 신기후체제 하에서의 감축 목표를 담은 ‘각국이 정한 기여(INDC: intented nationally determined contribution)'를 발표하고 있다. 신기후체제가 성공적으로 안착하는 데 있어 기후재원은 가장 필수적인 요소로 인식된다. 이는 신기후체제 하에서는 선진국뿐만 아니라 개도국도 온실가스 감축에 참여하며, 개도국은 자신들의 실질적인 온실가스 감축을 위해서는 선진국의 지원이 전제되어야 한다고 강하게 주장하고 있기 때문이다. 국제사회는 2020년까지 연간 1,000억 달러 수준으로 기후재원을 확대 조성하기로 합의한 바 있으나, 목표 달성 전망은 불투명하다. 그동안 협약 부속서에서 개도국으로 분류되었던 우리나라는 과거와 다른 국면을 맞이하게 되었다. 온실가스 다배출국으로서 산업계의 부담을 고려하되 G20 위상에 부합하는 감축목표를 수립하고 이에 따른 감축 방식을 모색해야 하는 상황이다. 또한 OECD 개발원조위원회(DAC) 회원국으로서 개도국의 기후변화 대응을 지원해야 하며, GCF 유치국으로서 GCF의 발전을 도모하기 위한 중장기 전략을 수립해야 한다. 이 연구의 목적은 전 지구적 도전과제인 기후변화 문제 해결을 위한 중견국으로서 우리나라가 나아가야할 방향을 제시하는 것이다. 이를 위해 우리나라의 온실가스 감축 및 기후재원 공여 수준을 도출하고 다른 국가와 비교분석을 시도하였다. 또한 협상쟁점과 연계하여 최근 주요 선진국의 개도국 지원전략의 특징과 결정요인을 분석하였다. 이 연구의 결과는 기후변화 협상전략 수립시 우리나라의 대응논리로 활용될 수 있을 것이다. English Abstract: At the 2015 Paris Climate Conference (COP21), the Parties to the UN Framework for Convention on Climate Change (UNFCCC) will reach an agreement on a new global climate regime. The agreement, which will come into effect in 2020, is the first agreement with a legally binding character since the Kyoto Protocol. For this reason, the Paris Conference will provide a momentum in the global climate change negotiations. The essence of the new climate regime is that all countries, developed and developing alike, are responsible for reducing greenhouse gas emission to mitigate climate change. As the first step, the Parties have submitted voluntary reduction targets to the UNFCCC, formally called as the "Intended Nationally Determined Contribution (INDC)." Climate finance is deemed as the key for a successful launch of the new climate regime. As mentioned above, while participation from both developed and developing country Parties is absolutely essential, developing country Parties demand that developed country Parties provide substantial financial support for climate action as preconditions. In fact, the global community has agreed on mobilizing 100 billion dollars of climate finance by year 2020. However, meeting the goal seems obscure at the moment. Korea is now facing a new challenge: to minimize the reduction burden imposed on private sector, and to meet the global expectation as a member of the G20. Furthermore, Korea as a member of the OECD Development Assistance Committee (DAC) is expected to provide substantial support to developing countries for them to tackle climate change . Also, as the host country of the Green Climate Fund (GCF) Secretariat, Korea shall seek mid- and long-term strategy that will contribute to the progress of the Fund. In this regard, this study seeks to provide policy direction for Korea in resolving global climate challenge, in consideration of our role as the bridge between the global South and North. The results of the study can be utilized in developing the logical framework in Korea's climate change negotiation strategy.
    Keywords: Climate Change; Greenhouse Gases; Environmental Policy
    Date: 2015–12–30

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