nep-ene New Economics Papers
on Energy Economics
Issue of 2017‒06‒04
35 papers chosen by
Roger Fouquet
London School of Economics

  1. PSYCHOLOGICAL FACTORS INFLUENCE ON ENERGY EFFICIENCY IN HOUSEHOLDS By Zaneta Simanaviciene; Virgilijus Dirma; Arturas Simanavicius
  2. Be who you ought or be who you are? Environmental framing and cognitive dissonance in going paperless By Greer Gosnell
  3. Sustainable Consumption: Eco-labelling and its impact on consumer behavior - evidence from a study on Polish consumer By Lucyna Witek
  4. The empirics of enabling investment and innovation in renewable energy By Géraldine Ang; Pralhad Burli; Dirk Röttgers
  5. Demand pull instruments and the development of wind power in Europe: A counter-factual analysis By Marc Baudry; Clément Bonnet
  6. Renewable energy governance in India: challenges and prospects for achieving the 2022 energy goals By Rehman, Salma; Hussain, Zaki
  7. Who Should Own a Renewable Technology? Ownership Theory and an Application By Talat S. Genc; Stanley S. Reynolds
  8. Urban Transformation and Technology Spillovers: Evidence from China's Electric Apparatus Sector By He, Ming; Chen, Yang; van Marrewijk, Charles
  9. Co-firing coal with biomass under mandatory obligation for renewable electricity: implication for the electricity mix By Vincent Bertrand
  10. Are Multifractal Processes Suited to Forecasting Electricity Price Volatility? Evidence from Australian Intraday Data By Mawuli Segnon; Chi Keung Lau; Bernd Wilfling; Rangan Gupta
  11. An Integrated Appraisal of The Péligre Electricity Transmission Line Rehabilitation Investment By Sener Salci
  12. Estimation of a Dynamic Multilevel Factor Model with possible long-range dependence By Rodríguez Caballero, Carlos Vladimir; Ergemen, Yunus Emre
  13. Electricity consumption, Education Expenditure and Economic Growth in Chinese Cities By Fang, Zheng; Chen, Yang
  14. The improvement of the company’s environmental performance through the application of Green Lean/Lean and Green approach By Malgorzata Szymanska-Bralkowska; Ewa Malinowska
  15. Energy consumption, trade openness, economic growth, carbon dioxide emissions and electricity consumption: evidence from South Africa based on ARDL By Hasson, Ashwaq; Masih, Mansur
  16. Household Energy Elasticities in Pakistan: An Application of the LA-AIDS Model on Pooled Household Data By Muhammad Irfan; Michael P. Cameron; Gazi Hassan
  17. Recent Topical Research on Global, Energy, Health & Medical, and Tourism Economics, and Global Software By Chia-Lin Chang; Michael McAleer
  18. Industrial strategy in practice: innovation and management best practices in the automobile, energy and aerospace clusters in Bizkaia By Alexander Grous
  19. Human capital, energy, and economic development – Evidence from Chinese provincial data By Fang, Zheng; Chen, Yang
  20. Regulation of Enterprise Prices: Application Areas, Mechanisms and Methods of Regulation, Impact on Competition (Case Study of Gas Industry) By Kurdin, Alexander
  21. Coal mining in Central-East Europe in perspective of industrial risk By Izabela Jonek-Kowalska
  22. Discerning Granger-causal chain between oil prices, exchange rates and inflation rates: Evidence from Turkey By Citak, Yusuf Ensar; Masih, Mansur
  23. How to neutralize the Dutch disease notwithstanding the natural resources curse By Pereira, Luiz C. Bresser
  25. Response of Consumer Debt to Income Shocks: The Case of Energy Booms and Busts By Brown, Jason
  26. The resource curse reloaded: revisiting the Dutch disease with economic complexity analysis By Camargo, Jhean Steffan Martines de; Gala, Paulo
  27. Who Wins in an Energy Boom? Evidence from Wage Rates and Housing By Grant Jacobsen
  28. Lags, Costs, and Shocks: An Equilibrium Model of the Oil Industry By Gideon Bornstein; Per Krusell; Sergio Rebelo
  29. Comparative Analysis of Tax Regimes in the Oil Sector By Bobylev, Yuri; Rasenko, Olesya
  30. Socio-economic and enviromental effects of bioenergy based on wood ine the development of remote areas By Natalia Vukovic; Andrey Mehrentsev; Evgeny Starikov
  31. Sorting on the Used-Car Market After the Volkswagen Emission Scandal By Strittmatter, Anthony; Lechner, Michael
  32. Climate change and trade policy interactions: Implications of regionalism By Harro van Asselt
  33. Local development toward permanently sustainable low emission economy By Piotr Kulyk; Lukasz Augustowski; Anna Mroz
  34. Circular Economy: Technologies for Circulation By Justina Banioniene; Lina Dagiliene
  35. Future-biased Intergenerational Altruism By Francisco M. Gonzalez; Itziar Lazkano; Sjak A. Smulders

  1. By: Zaneta Simanaviciene (Mykolas Romeris University, Lithuanian Sports University); Virgilijus Dirma (Mykolas Romeris University, Lithuanian Sports University); Arturas Simanavicius (Mykolas Romeris University, Lithuanian Sports University)
    Abstract: Research background: Most of the studies and their authors focus on the social and economic impacts of energy-saving behavior. But they do not focus on psychological factors affecting the efficiency of energy consumption in households. Lithuania has a lack of a unified and justified opinion on psychological factors that affect the energy efficiency of households. Purpose of the article: to identify the psychological factors that influence energy efficiency in households and to identify the appropriate measures changing the individual’s energy consumption behavior. Methodology/methods: was based on analysis of scientific literature and expert evaluation, when the exerts selected the most influencing psychological factors. Expert valuation also allowed to set the right conditions in which individuals are more easily assimilated by means of energy saving. The correlation and regression analysis allowed to identify a variety of factors, including the psychological impact strength. Findings: Performed analysis of variety of factors that influence household energy consumption allowed to formulate conclusions that in most cases, economic and technological factors significantly influence household energy consumption, increased energy-efficient equipment production and supply is causing an energy consumption growth in households because they are more inclined to buy and use more efficient electrical equipment, which leads to the growth of energy consumption in households. An investigation showed that the energy consumption of households is strongly influenced by some cultural and psychological factors: the greater public openness to innovation, the households tend to use energy more efficiently. Also, a significant impact on energy consumption has some psychological indicators - frequently the more pronounced neuroticism or extraversion rate. Since the research was performed only in Lithuania, in the future it will seek to carry out an investigation in several countries and to compare a various factor on the proposed measures and the efficiency of household energy consumption.
    Keywords: psychological factors; efficient use of electricity; households
    JEL: D1 C92 Q43 Q56
    Date: 2017–05
  2. By: Greer Gosnell
    Abstract: This paper explores the potential for environmental information and dissonance-inducing messaging to encourage resourceful behaviour, following a study of customers of a renewable energy provider in the UK. It uses the manipulation of message framing to analyse behavioural motivators that businesses may consider when encouraging customers – in this case, those who already have revealed environmental preferences – to switch from paper to online communications. In a large-scale natural field experiment comprising 38,654 customers of renewable supplier Good Energy, the author has randomised environmental information and messaging rooted in theories of cognitive dissonance in email communications promoting an active switch to paperless billing. The study finds that environmental information and imagery are ineffective in inducing behaviour change. Interestingly, the dissonance-inducing messaging weakly improves uptake among the main sample but backfires among a sub-sample of individuals with extensive postgraduate education. Contrary to the majority of the literature on gender and environmental behaviour, females in the sample are less likely to switch to paperless billing than males.
    Date: 2017–05
  3. By: Lucyna Witek (Rzeszow University of Technology, Poland)
    Abstract: Environmental pollution has led to a growing interest in protecting the environment of various stakeholder groups, especially consumers, who in their purchasing behavior point to eco-labels. The purpose of the study is to analyze consumers attitudes towards eco-labels. The direct survey method was used. The survey was conducted from 1 December 2015 to 31 January 2016 among 390 consumers who are residents of south-eastern and southern Poland. The study conducted confirms that consumers have positive attitudes toward eco-labels, but have overall and partial knowledge of them. Almost half of respondents (48.2%) buy eco-labels, but only a small group has knowledge of various eco-labels (24.9%). The recognition of EU eco-labels is declared by 43.4% of survey participants (national eco-label – 35.1%). One may notice an inconsistency in the test participant declarations. A large group of respondents believe that manufacturers use eco-labels for sales and image purposes (61%). Only one third (32.1%) have confidence in eco-labels products. Quite a large number of respondents (43.1%) are willing to pay a higher price for such products. Almost three quarters of respondents declared that they were buying products from reliable sources but without eco-labels (76.2%). This study is a valuable contribution to research and a discussion on consumer ecological behavior, and contributes to sustainable consumption research. It creates a deeper and more detailed analysis of attitudes towards eco-labelling. It gives guidance to manufacturers and retailers, especially in consumer communication strategies. The results of the study may help to increase the effectiveness of eco-labelling. The research implies some values to society and helps to solve environmental problems.
    Keywords: green product, sustainable consumption, eco-labelling, consumer, ecolabel
    JEL: D12 M31 M37 Q56
    Date: 2017–05
  4. By: Géraldine Ang (OECD); Pralhad Burli (Montclair State University); Dirk Röttgers (OECD)
    Abstract: This working paper undertakes econometric analysis to assess the impacts of climate mitigation policies and the quality of the investment environment on investment and innovation in renewable power in OECD and G20 countries. It also assesses how countries’ investment environments interact with climate mitigation policies to influence investment and patent activity in renewable power. The paper gathered and tested data across OECD and G20 countries on more than 70 explanatory variables, which were analysed using two Poisson-family regression models: one to investigate determinants of investment flows in renewable power from 2000 until 2014; and one to investigate determinants of patent counts in renewable-power technologies from 2000 until 2012. Results of the econometric analysis are consistent with the main hypothesis in this paper that beyond setting climate mitigation policies, policy makers need to strengthen the general investment environment and align it with climate mitigation policies in order to mobilise investment and innovation in renewable power across OECD and G20 countries.
    Keywords: climate change, climate finance, estimation, public intervention, regression
    JEL: F30 H23 L94 O3 Q42 Q48 Q54 Q55 Q58
    Date: 2017–05–31
  5. By: Marc Baudry; Clément Bonnet
    Abstract: Renewable energy technologies are called to play a crucial role in the reduction of greenhouse gas (GHG) emissions. Since most of these technologies did not yet reach grid parity, public policies can rely on two types of approach to stimulate innovation: supply-push and demand-pull. The latter aims at creating demand for new technologies and at stimulating their diffusion. Nevertheless, due to the complex self-sustained dynamics of diffusion and to spillovers between the countries it is hard to determine whether newly installed capacities are imputable to national support policies and/or to policies implemented by neighbor countries. The paper addresses this problem. A micro-founded model of technology diffusion is developed and calibrated. It captures the influence of demand-pull policies on wind power installed capacities for six European countries over the last decade. A counter-factual analysis is carried out to assess the impact of demand-pull policies on wind power development by taking into account the interplay between national policies via spillovers.
    Keywords: Renewable energy, Technology diffusion, Demand pull instruments
    Date: 2017
  6. By: Rehman, Salma; Hussain, Zaki
    Abstract: India has set colossal renewable energy (RE) targets (achieving 175GW of renewable energy capacity by 2022) which need a clear strategy roadmap, integrated planning and a whole-of-system approach. However, the loopholes in institutional mechanisms are bound to hinder the process of policy formulation and implementation for the aspired quantum leap. This paper is an attempt to observe governance of renewable energy in India while exploring the issues and challenges that have been stalling the process of clean energy uptake. The paper finds that despite the comprehensive policy and regulatory frameworks, the large disconnect between the central policies and regional needs has created barriers for deployment of renewable technologies. The paper emphasizes the provision for clean energy financial support to be made available to the states for addressing the disparities between RE potential and the development cost, and planning for better grid management systems. The RE targets also demand an intensive capital market development and innovative financial support mechanisms and products. While aligning itself with the clean energy goals, India needs to focus significantly on the energy needs of the rural population which has been grappling with electricity cuts and brownouts. For regions with limited or no electricity supply, the government should aggressively promote the ideas of off-grid solar power and micro grids. The paper also recommends the possibilities for private sector investments, rural entrepreneurship and public- private ventures for filling in the gaps, and thus harnessing the potential of RE-rich states.
    Keywords: Renewable Energy, UN Sustainable Development Goals (SDGs), India, Clean Energy, Grid integration, Solar Mission, NAPCC, Climate change, Rural electrification
    JEL: Q2 Q20 Q28 Q5 Q50 Q56 Q58
    Date: 2017–01–26
  7. By: Talat S. Genc (Department of Economics, University of Guelph, Guelph ON Canada); Stanley S. Reynolds (Department of Economics, University of Arizona, Tucson, Arizona 85721 USA)
    Abstract: We investigate the market implications of ownership of a new low-cost production technology. We relate our theoretical findings to measuring the impact of renewable energy penetration into electricity markets and examine how the ownership of renewable capacity changes market outcomes (prices, outputs, emissions). As the current public policies influence the renewable energy ownership, this research provides useful insights for policy makers. We show that ownership of renewable capacity will matter when there is market power in energy market. We apply our findings to the Ontario wholesale electricity market to analyze the impact of different ownership structures for wind capacity expansions. We show that consumers enjoy better air quality under the largest firm's ownership, but at the expense of higher prices. We find that market structure and the shape of generation cost functions are the key drivers explaining the impact of renewable ownership on market outcomes.
    Keywords: Market structure, technology ownership, renewable energy, greenhouse gas emissions
    JEL: D4 L1 Q5 Q4 Q2
    Date: 2017
  8. By: He, Ming (Division of Economics, Xi'an Jiaotong-Liverpool University); Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University); van Marrewijk, Charles (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: We analyze the consequences of China's massive transformation of cities for firm-level productivity and technology spillovers at the detailed district/county level for the Electric Apparatus sector. We identify three types of regions (metro core, metro ring, and periphery) and three types of transformation variables (modernization, mobility, and economic regional disparity). Using a spatial autoregressive model which allows us to distinguish between spillovers within the region and between neighboring regions, and after controlling for the standard results found in the literature, we nd that: modernization and mobility contribute signifficantly to interregional technology spillovers with neighboring regions, while economic regional disparity signifficantly discourages such types of spillovers and instead encourages spillovers with firms within the region. Of the three transformation variables, disparity explains most of the variance in spillover e ects, followed by mobility and modernization.
    Date: 2017–05–24
  9. By: Vincent Bertrand
    Abstract: This paper analyses the effect of recognizing co-firing coal with biomass as a renewable energy sources (RES) so as to meet the mandatory obligations in electricity. We provide simulations for the French and German electricity mix, with investigations about consequences for cost savings in the power sector and CO2 emissions. Results indicate that, if co-firing is recognized as a RES, coal would crowd-out traditional RES, not only with increased generation from existing coal plants, but also with additional investments in coal that would be substituted for traditional RES. Investments in coal may be more significant in France than in Germany, which may correspond to adding up to 243% of coal capacity in French electricity by 2030, whereas the same progression is 27% in Germany. Regarding CO2 emissions, we find sharp increases when co-firing is recognized as a RES. The rise is more significant in Germany due to more coal capacities. In the case of France, the magnitude of increased emissions highly depends on the share of nuclear electricity, with fewer increase when old nuclear stations are prolonged. Finally, we find that including co-firing in the set of RES reduces the overall costs associated with managing the power system. We also balanced the cost saving for the power sector with the increased social cost from higher CO2 emissions. Results show that the cost saving is dominated by the increased carbon cost for the society if the carbon valuation is around 100 Euros per tCO2, except in France when old nuclear stations are prolonged.
    Keywords: Co-firing, Biomass, Renewable electricity obligation, Electricity mix, CO2 emissions, Social cost of carbon
    Date: 2017
  10. By: Mawuli Segnon (Westfälische Wilhelms-Universität Münster, Department of Economics (CQE), Germany and Mark E AG, Germany); Chi Keung Lau (Newcastle Business School, Department of Economics and Finance, UK); Bernd Wilfling (Westfälische Wilhelms-Universität Münster, Department of Economics (CQE), Germany); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, South Africa)
    Abstract: We analyze Australian electricity price returns and find that they exhibit multifractal structures. Consequently, we let the return mean equation follow a long memory smooth transition autoregressive (STAR) process and specify volatility dynamics as a Markov-switching multifractal (MSM) process. We compare the out-of-sample volatility forecasting performance of the STAR-MSM model with that of other STAR mean processes, combined with various conventional GARCH-type volatility equations (for example, STAR-GARCH(1,1)). We find that the STAR-MSM model competes with conventional STAR-GARCH specifications with respect to volatility forecasting, but does not (systematically) outperform them.
    Keywords: Electricity price volatility; multifractal modeling; GARCH processes; volatility forecasting
    JEL: C22 C52 C53
    Date: 2017–05
  11. By: Sener Salci (Department of Economics, Queen’s University, Kingston, Ontario, Canada.)
    Abstract: The analytical challenges in evaluating the impacts of transmission line investments have vexed practitioners and electricity market regulators. The purpose of this study is to provide a guideline for improving the accuracy and predictability of the impacts of electricity rehabilitation projects. The subject is too broad to address completely here. The proposed guideline is suitable for evaluations of such project implemented in a broken electricity network. In such case, the demand for electricity is deterred, the supply of the electricity is unreliable, and the system is far away from its least-cost optimum production/consumption level. The guideline does not rebut the catalog of existing evaluation models or approaches. The guideline utilizes them for a reasonable ex-ante assessment to identify “good” projects that satisfy the economic and public objectives of the economy. An integrated cost-benefit analysis (CBA) framework is recommended to appraise such projects along with allocating the impacts to stakeholders in a manner that is commensurate with the net benefits they receive. Such an integrated analysis is much more than a set of procedures for estimating the expected net present values or rates of return of the project.
    Keywords: Electricity, Transmission Line, Rehabilitation Investment, Reliability, Cost-Benefit Analysis, Haiti
    JEL: D61 H43 L94
    Date: 2017–09
  12. By: Rodríguez Caballero, Carlos Vladimir; Ergemen, Yunus Emre
    Abstract: A dynamic multilevel factor model with possible stochastic time trends is proposed. In the model, long-range dependence and short memory dynamics are allowed in global and regional common factors as well as model innovations. Estimation of global and regional common factors is performed on the prewhitened series, for which the prewhitening parameter is estimated semiparametrically from the cross-sectional and regional average of the observable series. Employing canonical correlation analysis and a sequential least-squares algorithm on the prewhitened series, the resulting multilevel factor estimates have a centered asymptotic normal distribution. Selection of the number of global and regional factors is also discussed. Estimates are found to have good small-sample performance via Monte Carlo simulations. The method is then applied to the Nord Pool electricity market for the analysis of price comovements among different regions within the power grid. The global factor is identified to be the system price, and fractional cointegration relationships are found between regional prices and the system price.
    Keywords: Nord Pool power market; fractional cointegration; short memory; long-range dependence; Multi-level factor
    Date: 2017–05
  13. By: Fang, Zheng (School of Business, SIM University, Singapore); Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: We examine the city-level cointegrating and Granger causal relationships between economic growth, electricity consumption and human capital during a period of 2003-2012 in China. Applying the Continuously-updated fully modified OLS panel estimation, we find that for China as a whole physical and human capital have similar positive impacts on local economic growth, which are slightly larger than the effect of electricity consumption. A 1% rise in either physical or human capital investment boosts economic growth by 0.07% and the output elasticity of electricity consumption is 0.06. Comparatively, electricity consumption plays a dominant role to boost economic growth in the Center, human capital contributes most to growth in the East, and growth in the West benefits most from physical capital investments. Using a Granger causality test that is suitable for heterogeneous panels, we find a uni-directional causal relationship running from economic growth to electricity consumption in central and western China and a feedback effect in eastern China. In terms of the causal relationship between electricity consumption and education expenditure, electricity Granger causes education expenditure in some eastern Chinese cities and a reverse relationship is observed for cities in Middle China, while for western cities a bi-directional causal link is found. Local policies should therefore vary and be coordinated across government agencies.
    Keywords: Electricity consumption, education expenditure, heterogeneous panel causality, Chinese cities
    Date: 2017–05–24
  14. By: Malgorzata Szymanska-Bralkowska (University of Gdansk, Poland); Ewa Malinowska (University of Gdansk, Poland)
    Abstract: Green Lean (Lean and Green) approach is based on the lean method. As the literature and case studies show the Japanese quality improvement tools can be used in environmental management as well as in quality management. Companies that focus on sustainability may use those tools and methods to improve its processes and eliminate green waste at the same time. The research concentrates on the examples of the companies that started to implement the Green Lean (Lean and Green). The purpose of the article is to present how the application of Green Lean (Lean and Green) approach improves the environmental performance of the company and what are the benefits. Critical review of the literature, observation, interviews in selected researched companies. By identifying and eliminating the green waste i.a. in energy, materials, garbage, water, emissions, biodiversity, transportation researched companies are minimizing its negative impact on environment. As the research shows the employees should be motivated and involved in the process so does the management to make it work. Green Lean (Lean and Green) approach enables the companies to perform in profitable and sustainable way at the same time.
    Keywords: Lean Management; Green Lean; Lean and Green; environment
    JEL: Q5 Q59
    Date: 2017–05
  15. By: Hasson, Ashwaq; Masih, Mansur
    Abstract: This paper undertakes to investigate the interplay between economic growth, energy consumption, electricity consumption, carbon emission and trade by employing recent South African trade and energy data during the period from 1971 to 2013. South Africa is used as a case study given its status as perhaps the most developed country in the African continent with a very high energy consumption as well as its unique position in its current history where it relies on the somewhat antiquated coal industry to provide most of its energy as well as being one of its main imports. The effect of trade openness on environmental conditions has spawned a great deal of controversy in the current energy economics literature. Although research on the relationship between energy consumption, carbon emissions and economic growth are quite prevalent, no study to our knowledge specifically addresses the role that South Africa’s trade plays in this context. The ARDL bounds testing approach to cointegration has been used to test the long run relationship among the variables, while short run dynamics has been investigated by applying error correction method (ECM). The main finding of interest in this paper is that a positive relationship exists between energy consumption and economic growth. However, it seems the results suggest that electricity prices have a negative impact on economic growth. The results further evidenced that trade openness and electricity are leading variables, while the rest are lagging. Furthermore, our results demonstrate trade reduces overall pollutions caused by carbon emission, thus it improves environmental quality by contracting the growth of energy pollutants. Our empirical results are consistent with the existence of environmental Kuznets curve. It is, thus, imperative for policymakers to take better care of these two exogenous variables that will have a profound effect on the country’s economy as a whole. The policymakers should make decision on GDP based on trade openness because changes in trade openness will have impact on GDP, as trade is a leading variable.
    Keywords: GDP, Energy consumption, Trade openness, EKC, Carbon Emission, South Africa
    JEL: C58 E44 G15
    Date: 2017–05–13
  16. By: Muhammad Irfan (University of Waikato); Michael P. Cameron (University of Waikato); Gazi Hassan (University of Waikato)
    Abstract: This study aims to estimate the fuel expenditure and price elasticities of household fuels in Pakistan. Burning of wood, animal dung, and crop residues are harmful to health and may cause preventable morbidity and mortality in developing countries. Forests, natural gas and other energy reserves are depleting. It is important to investigate how households’ fuel choices are linked to prices, so that governments can consider appropriate steps to enhance the consumption of clean fuels and discourage the use of solid fuels. In this paper we pooled three Pakistan Social and Living Standard Measurement Survey (PSLM) data sets (2007-08, 2010-11 and 2013-14) and applied the Linear Approximate Almost Ideal Demand System (LA-AIDS) model to investigate the price and expenditure elasticities at urban, rural, and national levels. We found that all fuel types except natural gas were price inelastic at the national level and for urban households, implying that changes in prices lead to comparatively lesser changes in quantity demanded of most fuels. In rural areas, natural gas and LPG were found to be more price elastic compared with urban areas. Fuel expenditures elasticities for all fuels were found to be positive and between zero and one. Simple policy simulations based on our results suggest that in order to reduce the indoor air pollution, governments should subsidise clean fuels rather than imposing taxes on solid fuels.
    Keywords: household energy; elasticities; LA-AIDS; Pakistan
    JEL: O13 P28 Q41
    Date: 2017–05–23
  17. By: Chia-Lin Chang (Department of Applied Economics, Department of Finance, National Chung Hsing University, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; University of Sydney Business School, Australia; Erasmus School of Economics, Erasmus University Rotterdam, and Tinbergen Institute, The Netherlands; Complutense University of Madrid, Spain and Yokohama National Univ)
    Abstract: The paper presents an overview of recent topical research on global, energy, health & medical, and tourism economics, and global software. We have interpreted “global” in the title of the Journal of Reviews on Global Economics to cover contributions that have a global impact on economics, thereby making it “global economics”. In this sense, the paper is concerned with papers on global, energy, health & medical, and tourism economics, as well as global software algorithms that have global economic impacts. The topics covered include re-opening the Silk Road to transform Chinese trade, education and skill mismatches, education policy for migrant children, code of practice and indicators for quality management of official statistics, projections of energy use and carbon emissions, multi-fuel allocation for power generation using genetic algorithms, optimal active energy loss with feeder routing and renewable energy for smart grid distribution, demand for narcotics with policy implications, access to maternal and child health services of migrant workers, computer technology to improve medical information, heritage tourism, ecotourism impacts on the economy, society and environment, taxi drivers’ cross-cultural communication problems and challenges, hybrid knowledge discovery system based on items and tags, game development platform to improve advanced programming skills, quadratic approximation of the newsvendor problem with imperfect quality, classification of workflow management systems for emails, academic search engine for personalized rankings, creative and learning processes using game-based activities, personal software process with automatic requirements traceability to support start-ups, and comparing statistical and data mining techniques for enrichment ontology with instances.
    Keywords: Global economics; energy economics; health & medical economics; tourism economics; global software
    JEL: I15 L86 O13 Q47 Z32
    Date: 2017–05–22
  18. By: Alexander Grous
    Abstract: This paper presents research undertaken in Bizkaia in the Basque region that ‘peels the organisational layers’ to assess the management practices of 10 firms. These firms are drawn from the automotive, energy and aerospace clusters that have achieved international recognition, positioning Bizkaia as a prominent region for innovation and production. Firms were assessed using leading methodology developed by the LSE with McKinsey and Co that quantifies management practices and provides a comparison with comparable firms globally...
    JEL: R14 J01
    Date: 2017
  19. By: Fang, Zheng (School of Business, SIM University, Singapore); Chen, Yang (Division of Economics, Xi'an Jiaotong-Liverpool University)
    Abstract: This paper investigates the cointegration and Granger causal relationship between economic growth and total energy consumption as well as disaggregate energy such as coal, coke, crude oil, petroleum products, natural gas and electricity in China for a period of 1995-2014. Different from limited existing provincial studies on China, we use a multivariate framework that considers per capita human capital on top of physical capital in the neoclassical production function and advanced panel econometric methodologies that allow for cross-sectional dependence. Our results suggest that human capital exerts 2-3 times the effect of physical capital on the economy and energy also plays a significant role. Furthermore, the rich bootstrap panel Granger causality test results for both the panel and individual provinces provide substantial insights and suggest that it is important to examine the causal effects of both the total energy use and various disaggregate energy consumption before local governments make specific energy and economic policies.
    Keywords: energy-growth nexus, human capital, cross-sectional dependence, China
    Date: 2017–05–24
  20. By: Kurdin, Alexander (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The process of reforming Russian industry, which has lasted for the last decade, is accompanied by a discussion on the establishment of such an industry regulation system that, on the one hand, would create incentives for market participants to invest in the development of the industry and upgrade capacities, and, on the other hand, would not be accompanied by faster growth of prices and indexation of tariffs. Traditionally, this issue is relevant for infrastructure industries, their cost of services directly affects the costs of citizens and the cost of the final products of enterprises. The paper reviews the theoretical and applied aspects of regulation of prices and tariffs in the gas industry, the methods used are systematized, the specifics of Russian practice and prospects for the development of the gas industry in Russia and the world are analyzed, recommendations are formulated for Russian authorities.
    Date: 2017–03
  21. By: Izabela Jonek-Kowalska (The Silesian University of Technology, Poland)
    Abstract: Due to increasing economic and sector risk coal mining in Europe is treated as a declining industry. In post-transition economies such approach is a threat for energy security and local and regional economic development. Nowadays, coal mining survival in Central-East Europe is additionally threatened by accumulative global risk factors, especially by price differentiation and shale gas revolution in United States of America. Revealed circumstances require deepen research and diagnosis in the area of risk and corporate management in mining enterprises in Central-East Europe. The main aim of the article is to assess industrial risk in coal mining in Central-East Europe. The research is divided into three parts. In the first one the situation of coal mining in Central-East Europe is characterized. It is the basis for selection of the countries for the detailed analysis. In the second part the industrial risk factors are assessed and described. Finally, in the third part their influence on financial results in the examined mining enterprises is evaluated. In the summary the international comparison is made and general assumptions for risk and corporate management are formulated. In the article a risk checklist is used to identify the economic and industrial risk factors. To determine their influence on financial results on the first stage of research Pearson’s coefficients are used. Than regression functions are developed. The data are collected on the basis of public statistics and financial statements of the examined mining enterprises. On the basis of research results it may be stated that there are only a few countries in Europe in which mining enterprises still operate as separate economic units and all of them have experienced serious financial troubles in the last years. Risk intensification contributed mostly to revenues reduction and negative financial results.
    Keywords: post-transition economies, economic and industrial risk, coal mining
    JEL: P23 P28 G31 L72
    Date: 2017–05
  22. By: Citak, Yusuf Ensar; Masih, Mansur
    Abstract: The purpose of this study is to investigate the Granger-causal relationship between oil prices, exchange rates and inflation rates using Turkey as a case study. Revealing this relationship will give us a roadmap to cure fragile Turkish economy. Standard time-series approaches are used to investigate this relation. Our empirical findings tend to indicate that there is a long run relationship between these variables and that the CPI appears to be the variable leading exchange rate and oil prices. The results are plausible and have strong policy implications.
    Keywords: Oil Price, Exchange Rate, CPI, PPI, Turkey, cointegration, exogeneity, endogeneity
    JEL: C58 E44 G15
    Date: 2017–05–12
  23. By: Pereira, Luiz C. Bresser
    Abstract: This paper discusses two closely related concepts – the Dutch disease and the natural resource curse – and a third one, exchange rate populism, associated to the curse. The Dutch disease is a long-term overvaluation of the national currency that originates from the exports of commodities which originate Ricardian rents. The natural resource curse is the generalized rent-seeking that takes over a country that exports commodities. And exchange rate populism is a political practice of keeping the national currency overvalued, so to assure reelection to the politician. This paper shows that the curse and the populism will make difficult for a country to neutralize the Dutch disease, which blocks investment and growth, but argues that the fight against the natural resource curse and the exchange rate populism will be strengthened if the policymakers realize that there is a relatively simple policy that effectively neutralize the disease – a policy that was sketched almost ten years ago (Bresser-Pereira 2009), but remains hardly known by economists.
    Date: 2017–05–15
  24. By: Loretta Mastroeni; Pierluigi Vellucci
    Abstract: We test whether the futures prices of some commodity and en- ergy markets are determined by stochastic rules or exhibit nonlinear deterministic endogenous uctuations. As for the methodologies, we use the maximal Lyapunov exponents (MLE) and a determinism test, both based on the reconstruction of the phase space of a dynamical sys- tem underlying a scalar time series. In particular, employing a recent methodology, we estimate a coecient that describes the determin- ism rate of the analyzed time series. The empirical evidence suggests that commodity and energy futures prices are the measured footprint of a nonlinear deterministic, rather than a stochastic, system.
    Keywords: chaos, butter y e ect, commodity futures.
    JEL: C53 D40 Q02 Q47
    Date: 2017–05
  25. By: Brown, Jason (Federal Reserve Bank of Kansas City)
    Abstract: This paper investigates how consumers respond to local income shocks as a result of booms and busts in oil and gas development. Oil and gas development generates potentially large streams of income via wages and salaries to workers and royalty income to mineral rights owners. Changes in development may lead consumers to increase their spending depending on their exposure to income shocks. Using quarterly information on consumer debt and oil and gas activity, I find that consumer debt increased at a peak of $840 per capita in counties with shale endowment and increased drilling. Each well drilled was associated with $6,750 in consumer debt for an implied total of $2.7 billion or 0.5 percent of consumer debt in areas where drilling occurred from 2007 to 2015. {{p}} Consumers in previously developed areas tend to view new increases in activity as transitory relative to areas with little previous development that experience a shock.
    Keywords: Oil; Gas; Income shock; Consumer debt
    JEL: D23 Q32 Q33 R11
    Date: 2017–05–01
  26. By: Camargo, Jhean Steffan Martines de; Gala, Paulo
    Abstract: This paper shows that the Dutch disease can be more formally characterised as low economic complexity using ECI-type indicators; there is a solid and robust inverse relationship between exports concentrating on natural resources and economic complexity as measured by complexity indicators for a database of 122 countries from 1963 to 2013. In a large majority of cases, oil answers for shares in excess of 50% of exports. In addition to empirical panel analysis, we address case studies concerned with Indonesia and Nigeria and introduce a brief review of the theoretical literature on the topic. Indonesia is considered in the literature as a good example in avoiding the negative effects of the Dutch disease, whereas Nigeria is taken as a bad example in terms of institutions and policies adopted during the seventies and eighties. The empirical results show that complexity analysis and Big Data may offer significant contributions to the still-current debate surrounding the Dutch disease.
    Date: 2017–03–13
  27. By: Grant Jacobsen (University of Oregon)
    Abstract: This paper presents evidence on the distributional effects of energy extraction by examining the recent U.S. energy boom. The boom increased local wage rates in almost every major occupational category. The increase occurred regardless of whether the occupation experienced a corresponding change in employment, suggesting a more competitive labor market that benefited local workers. Local housing values and rental prices both increased, thereby benefiting landowners. For renters, the increase in prices was completely offset by a contemporaneous increase in income. The results indicate that bans on drilling have negative monetary consequences for a large share of local residents.
    Keywords: NAFTA, oil, natural gas, hydraulic fracturing, fracking, resource extraction, labor market effects, resource curse, Dutch disease, wage rates, housing values, rental prices
    JEL: J23 Q33 R31
    Date: 2016–11
  28. By: Gideon Bornstein; Per Krusell; Sergio Rebelo
    Abstract: We use a new micro data set to compile some key facts about the oil market and estimate a structural industry equilibrium model that is consistent with these facts. We find that demand and supply shocks contribute equally to the volatility of oil prices but that the volatility of investment by oil firms is driven mostly by demand shocks. Our model predicts that the advent of fracking will eventually result in a large reduction in oil price volatility.
    JEL: Q4 Q43
    Date: 2017–05
  29. By: Bobylev, Yuri (Russian Presidential Academy of National Economy and Public Administration (RANEPA)); Rasenko, Olesya (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The paper considers the main approaches to the construction of tax regimes for the oil sector of the economy. A comparative analysis of various tax regimes that can be used to improve the efficiency of the tax system in the oil sector of the Russian economy is carried out. This work formulates recommendations on the state tax policy in relation to the oil sector aimed at ensuring the revenues of the state budget and creating the necessary conditions for investment.
    Date: 2017–04
  30. By: Natalia Vukovic (Ural State Forest Engineering University, Russia); Andrey Mehrentsev (Ural State Forest Engineering University, Russia); Evgeny Starikov (Ural State Forest Engineering University, Russia)
    Abstract: Traditional energy sources based on oil, coal, and natural gas have proven to be highly effective, but at the same time they have many negative environmental effects. Also by technical and economical points traditional energy sources are not available in many remote areas. In this paper, the authors have been discussed the alternative approach in energy supply, which also has positive social-economic and environmental effects. This paper provides a new solution for energy supply in remote areas by implementing bioenergy based on woodchips, which has multi-sector effects. Bioenergy generation based on woodchips has multi-sector effect that is why authors offer to combine forest cleaning cutting and forest thinning with bioenergy based on woodchips in one project which will have social, economic and ecological effects. The situation with forest fires makes the authors idea more attractive because after forest fires the problem of cleaning cutting in forest became very important and urgent by ecological and economical points: after cleaning cutting there are a lot of low quality wood which by author’s idea can be recycled into chips for bioenergy. This methodology has been applied to bioenergy and regional development decisions in remote areas which mainly have a problem with energy provision; it is suitable for applications to infrastructure development projects in any remote forested region of the world. Mobile bioenergy generation based on woodchips in remote areas settle the complex of environmental, social, economic problems and can become the driver of development of the region.
    Keywords: bioenergy, woodchip, cleaning cuttings, forest thinning, remote areas development
    JEL: O44 P28 Q01 Q42
    Date: 2017–05
  31. By: Strittmatter, Anthony; Lechner, Michael
    Abstract: The disclosure of the VW emission manipulation scandal caused a quasi-experimental market shock in the observable quality of VW diesel vehicles. We consider a classical model for adverse selection and sorting to derive an empirically testable hypothesis about the impact of observable quality on the supply of used cars. We test the hypothesis with data collected from an online car selling platform which reflects about 50% of the German used-car market. The empirical approach is based on a conditional difference-in-differences method. We find that the supply of used VW diesel vehicles increases after the VW emission scandal. This finding is consistent with the predictions of the theoretical model. Furthermore, we find the positive supply effects increase with the probability of manipulation.
    Keywords: Supply of used cars, quality of durable goods, sorting, difference-in-differences, management fraud
    JEL: D82 L15 L62
    Date: 2017–05
  32. By: Harro van Asselt (Stockholm Environment Institute)
    Abstract: This report investigates the implications of regionalism for the interaction between trade and climate policy. It examines the implications of regional climate governance for international trade and conversely the implications of regional trade governance for climate change action. Regional approaches to climate change governance are discussed with a specific focus on the rise of “climate clubs” and their implications for international trade. Moreover, regional trade agreements and their current environmental provisions related to climate change are also examined. Building on these analyses, this report explores the various ways in which regional trade agreements could address climate change objectives, and draws lessons from recent developments in regional trade governance for the further evolution of such agreements.
    Keywords: climate clubs, climate coalitions, free trade agreements, regional trade agreements, Trade and environment
    JEL: F13 F18 Q54 Q56 R11
    Date: 2017–05–31
  33. By: Piotr Kulyk (University of Zielona GoraFaculty of Economics and Management); Lukasz Augustowski (University of Zielona Gora); Anna Mroz (University of Zielona Gora)
    Abstract: This article presents issues of rational management of energy throughout the Lubuskie province. The starting point was the idea of permanently sustainable development. The authors focused on the problem of reducing emission of polluting gases in the context of sustainable development. The results obtained were collated with other provinces and a comparative analysis was made. The aim of the article is to evaluate the changes of emission of pollutants as well as the factor affecting emission and also to indicate the directions of its reduction. Such an approach is connected with both a long and short-term horizon, which follows from the necessity of securing clean air and “healthy atmosphere” at present as well as for future generations, taking into consideration , however , the economical, social and environmental context. In that sense, we are looking for an alternative which would secure permanent sustainability of development throughout the province. The paper analyzes different solutions to decrease the use of coal to achieve the aims of CO2 emission reduction throughout the Lubuskie province by means of an econometric model. The authors used a fixed effects model and selected statistical tests serving to evaluate and chose the right model. For evaluating the levels of penetration of different technologies considering their economical, technical and environmental characteristics, a probabilistic approach and historical data were used. Even though air pollution with gases has been dropping in the Lubuskie province since 2011, still the actions taken at the regional level are of great significance. The policy pursued by the region should include promotion of renewable sources of energy, spatial planning, or changes in the lifestyle. In the context of sustainable development, variables such as forestation, wages, number of plants, poverty threshold and population density have proven to be important.
    Keywords: spat Lubuskie province; CO2 reduction; sustainable development
    JEL: Q01 Q54
    Date: 2017–05
  34. By: Justina Banioniene (Kaunas University of Technology, School of Economics and Business); Lina Dagiliene (Kaunas University of Technology, School of Economics and Business)
    Abstract: Circular economy in the most recent scientific literature and conducted research is recognized as one of the most advanced models of sustainable economic growth, ensuring competitiveness and opening new businesses with the potential to offer long-lasting economic, environmental and social benefits. Investment in technological innovations may be a way to implement the principle of circular economy at micro (company) level. However, there is a gap in the literature in a systemic research of circular economy technology definition and classification of technologies in the context of creating eco-design products and achieving zero-waste production. Thus this theoretical paper provides a contribution to fill this gap. The aim of this theoretical paper is to define the concept of circular economy technology and to classify these technologies. The methods of systemic, comparative and logical scientific literature analysis, constructive research approach were used in the research. This study provides an extensive review of the scientific literature, with the purpose of grasping the concept of circular economy technology at micro (company) level: origins, definitions, classification, modelling of possibilities to gain, adapt or create circular economy technologies for circular economy implementation. Results evidence that technologies can be classified into basic technologies and technologies to implement circular economy, and the latter could be separated into technologies for eco-design products and for future manufacturing technologies as been detailed in the paper. This research could be useful for preparing government regulation in order to enable the implementation of circular economy, forecasting the need government investment and the institutional efforts to advise and convince companies towards actions implementing circular economy.
    Keywords: circular economy, technology, circular economy technology, classification.
    JEL: O3 Q5
    Date: 2017–05
  35. By: Francisco M. Gonzalez (Department of Economics, University of Waterloo); Itziar Lazkano (University of Wisconsin-Milwaukee); Sjak A. Smulders (Tilburg University)
    Abstract: We show that intergenerational altruism suffers from future bias if generations overlap and people?s altruism concerns the well-being of immediate ancestors and descendants. Future bias involves preference reversals associated with increasing impatience, which can create a con?flict of interest between current and future governments representing living generations. We explore the implications of this con?flict for intergenerational redistribution when there is a sequence of utilitarian governments choosing policies independently over time. We show that future-biased governments can have an incentive to legislate and sustain a pay-as-you-go pension system, which can be understood, from the viewpoint of every government, as a self-enforcing commitment mechanism to increase future old-age transfers.
    JEL: D71 D72 H55
    Date: 2017–04

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