nep-ene New Economics Papers
on Energy Economics
Issue of 2017‒06‒11
thirty-one papers chosen by
Roger Fouquet
London School of Economics

  1. How fast can one overcome the paradox of the energy transition? A predictive physico-economic model for the European power grid By Laurent Pagnier; Philippe Jacquod
  2. A predictive pan-European economic and production dispatch model for the energy transition in the electricity sector By Laurent Pagnier; Philippe Jacquod
  3. To switch or not to switch? Understanding German consumers' willingness to pay for green electricity tariff attributes By Sauthoff, Saramena; Danne, Michael; Mußhoff, Oliver
  4. Money, not morale: A study of the drivers behind investment in photovoltaic citizen participation initiatives. By Eva Fleiß; Stefanie Hatzl; Stefanie; Sebastian Seebauer; Alfred Posch; Alfred
  5. Economic and Operational Assessment of Reserve Methods and Metrics for Electric Grids With High Shares of Renewables By Gürses, Gonca; Garrison, Jared; Madlener, Reinhard; Demiray, Turhan
  6. Electrifying Africa: how to make Europe’s contribution count By Simone Tagliapietra
  7. Dynamics of Electricity Consumption, Oil Price and Economic Growth: Global Perspective By Muhammad, Shahbaz; Sarwar, Suleman; Wei, Chen; Malik, Muhammad Nasir
  8. The Long-Run Dynamics of Electricity Demand: Evidence from Municipal Aggregation By Tatyana Deryugina; Alexander MacKay; Julian Reif
  9. Demographic effects on residential electricity and city gas consumption in aging society of Japan By Toru Ota; Makoto Kakinaka; Koji Kotani
  10. Forecasting the distributions of hourly electricity spot prices By Christian Pape; Arne Vogler; Oliver Woll; Christoph Weber
  11. Coordinated balancing. Report on the key elements of debate from a workshop of the Future Power Market Platform By Neuhoff, Karsten; Richstein, Jörn; May, Nils
  12. Fluctuation analysis of electric power loads in Europe: Correlation multifractality vs. Distribution function multifractality By Hynek Lavicka; Jiri Kracik
  13. An adverse selection approach to power pricing By Cl\'emence Alasseur; Ivar Ekeland; Romuald Elie; Nicol\'as Hern\'andez Santib\'a\~nez; Dylan Possama\"i
  14. Economic Optimization of Electricity Supply Security in Light of the Interplay between TSO and DSO By Tran, Jacob; Madlener, Reinhard; Fuchs, Alexander
  15. Characteristics, causes, and price effects: Empirical evidence of intraday Edgeworth cycles By Siekmann, Manuel
  16. Low-quality or high-quality coal: Household energy choice in rural Beijing By Zhang Jingchao; Koji Kotani; Tatsuyoshi Saijo
  17. Community Energy in Italy: Heterogeneous institutional characteristics and citizens engagement By Chiara Candelise; Gianluca Ruggieri
  18. Der Wert von Versorgungssicherheit mit Strom: Evidenz für deutsche Haushalte By Frondel, Manuel; Sommer, Stephan
  19. Demand-driven Technical Change and Productivity Growth: Theory and Evidence from the US Energy Policy Act By Giammario Impullitti; Richard Kneller; Danny McGowan
  20. Green Growth Opportunities for Asia By Fankhauser, Sam; Kazaglis, Alex; Srivastav, Sugandha
  21. A tensão permanente entre expansão e crise do capitalismo: as revoluções tecnológicas e as bolhas financeiras By Rubem Polo Costa Mafra; Márcia Siqueira Rapini; Tulio Chiarini
  22. Policy Measures for Mitigating Fine Particle Pollution in Korea and Suggestions for Expediting International Dialogue in East Asia By Shim, Changsub
  23. Strategies for mitigating air pollution in Mexico City By ITF
  24. The Private Benefit of Carbon and its Social Cost By Richard S.J. Tol
  25. The role of border carbon adjustments in a US carbon tax By Warwick J. McKibbin; Adele C. Morris; Peter J. Wilcoxen; Weifeng Liu
  26. Does Mitigation Begin At Home? By Diederich, Johannes; Goeschl, Timo
  27. Le climat de la Terre avant la révolution industrielle By André Fontana
  28. Brexit as Climate Policy: The Agenda on Energy and the Environment By Ralf Martin
  29. Enquête sur les entreprises touchées par le système de plafonnement et d'échange de droits d'émission de gaz à effet de serre au Québec (SPEDE) By (Sans nom)
  30. Recent topical research on global, energy, health & medical, and tourism economics, and global software By Chia-Lin Chang; Michael McAleer
  31. Volatility Spillovers and Causality of Carbon Emissions, Oil and Coal Spot and Futures for the EU and USA By Chia-Lin Chang; Michael McAleer; Guangdong Zuo

  1. By: Laurent Pagnier; Philippe Jacquod
    Abstract: The paradox of the energy transition is that, because of the low marginal costs of new renewable energy sources (RES), it drags electricity prices down and discourages investments in flexible productions that are needed to compensate for the lack of dispatchability of the new RES - the energy transition discourages the investments that are required for its own harmonious expansion. To investigate how this paradox can be overcome, we argue that future electricity prices can be accurately modeled from the residual load obtained by subtracting the sum of inflexible productions from the load. Armed with the resulting quantitative economic indicator, we investigate future revenues for power plants with various degree of flexibility under different scenarios for the energy transition in the European power grid. We find that flexible productions will be financially rewarded better and sooner if the energy transition proceeds faster but at more or less constant total production, i.e. by reducing the production of thermal power plants at the same rate as the production of RES increases. Less flexible productions, on the other hand, will see their revenue grow more moderately. Our results advocate for a faster energy transition with a quicker withdrawal of baseload thermal power plants.
    Date: 2017–06
  2. By: Laurent Pagnier; Philippe Jacquod
    Abstract: The energy transition is well underway in most European countries. It has a growing impact on electric power systems as it dramatically modifies the way electricity is produced. To ensure a safe and smooth transition towards a pan-European electricity production dominated by renewable sources, it is of paramount importance to anticipate how production dispatches will evolve, to understand how increased fluctuations in power generations can be absorbed at the pan-European level and to evaluate where the resulting changes in power flows will require significant grid upgrades. To address these issues, we construct an aggregated model of the pan-European transmission network which we couple to an optimized, few-parameter dispatch algorithm to obtain time- and geographically-resolved production profiles. We demonstrate the validity of our dispatch algorithm by reproducing historical production time series for all power productions in fifteen different European countries. Having calibrated our model in this way, we investigate future production profiles at later stages of the energy transition - determined by planned future production capacities - and the resulting interregional power flows. We find that large power fluctuations from increasing penetrations of renewable sources can be absorbed at the pan-European level via significantly increased electricity exchanges between different countries. We identify where these increased exchanges will require additional power transfer capacities. We finally introduce a physically-based economic indicator which allows to predict future financial conditions in the electricity market. We anticipate new economic opportunities for dam hydroelectricity and pumped-storage plants.
    Date: 2017–06
  3. By: Sauthoff, Saramena; Danne, Michael; Mußhoff, Oliver
    Abstract: In order to achieve an environmentally friendly and sustainable energy supply, it is necessary that this goal is supported by society. In different countries worldwide it has been shown that one way consumers want to support the energy transition is by purchasing green electricity. However, few people make the leap from their intention to a buying decision. This study explores parameters that influence whether German consumers decide to switch to a green electricity tariff. We conducted a quota-representative online survey including a discrete choice experiment with 371 private households in Germany in 2016. For the econometric analysis, a generalized multinomial logit model in willingness to pay (WTP) space was employed, enabling the estimation of WTP values to be as realistic as possible. The results show that consumers' decision regarding whether or not to make the switch to green energy is influenced by many underlying drivers, such as the source of green energy, whether a person can outsource the switching process, and a person's attitude towards the renewable energy sources levy that currently exists in Germany. Implications for policy makers and recommendations for the marketing of green energy tariffs are provided.
    Keywords: energy transition,green energy,tariff switch,discrete choice experiment,generalised multinomial logit model,WTP space
    Date: 2017
  4. By: Eva Fleiß (Institute of System Sciences, Innovation and Sustainability Research, University of Graz); Stefanie Hatzl; Stefanie (Institute of System Sciences, Innovation and Sustainability Research, University of Graz); Sebastian Seebauer (Wegener Center for Climate and Global Change, University of Graz); Alfred Posch; Alfred (Institute of System Sciences, Innovation and Sustainability Research, University of Graz)
    Abstract: We currently face the challenge of reducing greenhouse gas emissions in order to mitigate climate change. A transition towards renewable energy production is one proposed solution. In this regard, photovoltaic (PV) citizen participation initiatives (CPIs) are a cornerstone in fostering the diffusion of renewables and in promoting a transition towards a carbon neutral and adaptive society allowing for active citizen engagement. Based on survey data, this article investigates the drivers behind people’s decision to adopt in two selected Austrian PV-CPIs. In addition to commonly used indicators, we also include variables that allow us to assess both – people’s desires, (their ‘preferences’ with respect to energy autarky, environmental protection, financial aspects, etc.) and their beliefs in term of how likely they think their participation in a PV-CPI will help them achieve their goals. We find that joining a PV-CPI is predominantly driven by people’s financial beliefs.
    Date: 2016–05–14
  5. By: Gürses, Gonca (RWTH Aachen University); Garrison, Jared (Research Center for Energy Networks (FEN), ETH Zurich); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Demiray, Turhan (Research Center for Energy Networks (FEN), ETH Zurich)
    Abstract: This study is based on the recent development of the European energy environment, which experiences a transition from being dominated by conventional energy generation into an increased penetration of renewable energy sources. Today's system operators offer a set of ancillary services, such as control reserves, which cover mismatches of energy demand and supply. However, higher reserve volumes also lead to increased procurement costs. In this study, three reserve-dimensioning methodologies are assessed with regard to their stability and cost metrics. For the calculations, an updated version of the IEEE 24-bus RTS is generated. Each method is being applied to three grid cases, which reflect a conservatively low renewable energies scenario, a high share of wind energy scenario, and a high share of mixed renewable energies scenario, respectively. The results show the trade-off between reliability and costs for each of the three scenarios evaluated.
    Keywords: renewables; electric grid; reserve energy
    JEL: Q40
    Date: 2016–12
  6. By: Simone Tagliapietra
    Abstract: Electrification is one of sub-Saharan Africa’s most pressing socio-economic challenges. Less than a third of the sub-Saharan population has access to electricity, and around 600,000 premature deaths are caused each year by household air pollution resulting from the use of polluting fuels for cooking and lighting. Solving this issue is a fundamental prerequisite for unleashing sub-Saharan Africa’s economic potential. Given the magnitude of the challenge, only a joint effort involving sub-Saharan African countries and international public and private parties would pave the way to a solution. Sub-Saharan African countries should be the first to move. They should reform the governance of their energy sectors, in particular by reforming their generally inefficient state-owned electricity utilities, and by phasing-out market-distorting energy subsidies. Without such reforms, international investment will never scale-up across sub-Saharan Africa. International public and private parties must play a key role in facilitating sub-Saharan Africa’s energy transformation, particularly the electrification of rural areas, where three-fifths of the sub-Saharan African population lives. International public support is particularly important to crowd-in international private investors, most notably through innovative public-private partnerships. China and the United States are already engaged in electrification in sub-Saharan Africa. China has substantially invested in large-scale electricity projects, while the US has put in place a comprehensive initiative – Power Africa – to scale-up electrification, particularly in rural areas, through public-private partnerships. Europe has, instead, created a myriad of fragmented initiatives to promote electrification in sub-Saharan Africa, limiting their potential leverage in crowding-in private investment and in stimulating energy sector reforms in sub-Saharan African countries. This sub-optimal situation should be changed by coordinating the initiatives of European institutions and EU countries through a unique platform. We propose such a platform - the EU Electrify Africa Hotspot.
    Date: 2017–06
  7. By: Muhammad, Shahbaz; Sarwar, Suleman; Wei, Chen; Malik, Muhammad Nasir
    Abstract: This study uses the data from 157 countries from 1960 to 2014 to analyze the relationship between economic growth, electricity consumption, oil prices, capital, and labor. The economic growth of developing countries with industrial infrastructure has a more significant association with electricity consumption than oil prices. We use oil prices and electricity consumption jointly to study highly predictive observations for economic growth. The data are categorized by income, OECD and regional levels. The panel cointegration, long-run parameter estimation, and Pool Mean Group tests are used to analyze the cointegration and short-run and long-run relationships between the variables. The empirical results indicate the presence of cointegration between the variables. The presence of feedback effects between electricity consumption and economic growth, oil prices and economic growth is valid. These findings confirm that inspite of the oil prices, developing countries rely heavily on electricity consumption for economic growth.In the short run, growth and feedback effects suggest that more vigorous electricity policies should be implemented to attain sustainable economic growth for the long-term.
    Keywords: Electricity Consumption, Oil Prices, GDP, Capital, Population
    JEL: A10
    Date: 2017–05–01
  8. By: Tatyana Deryugina; Alexander MacKay; Julian Reif
    Abstract: Understanding the response of consumers to electricity prices is essential for crafting efficient energy market regulations, evaluating climate change policy, and investing optimally in infrastructure. We study the dynamics of residential electricity demand by exploiting price variation arising from a natural experiment: the introduction of an Illinois policy that enabled communities to select electricity suppliers on behalf of their residents. Participating communities experienced average price decreases in excess of 10 percent in the two years following adoption. Using a flexible difference-in-differences matching approach, we estimate a one-year price elasticity of -0.14 and three-year elasticity of -0.29. We also present evidence that consumers increased usage in anticipation of the price changes. Finally, we estimate a forward-looking demand model and project that the price elasticity converges to a value between -0.30 and -0.35 after ten years. Our findings demonstrate the importance of accounting for long-run dynamics in this context.
    JEL: D12 Q41 Q48
    Date: 2017–06
  9. By: Toru Ota (Toho Gas Corporation); Makoto Kakinaka (Graduate School for International Development and Cooperation, Hiroshima University); Koji Kotani (School of Economics and Management, Kochi University of Technology)
    Abstract: Japan has been confronted with two demographic forces, declining fertility rates and lengthening life spans, which give rise to the rising ratio of the elderly (aging society), the decline in population and the prevalence of nuclear families. This study empirically analyzes demographic effects on residential electricity and city gas consumption in Japan. Our analysis presents the following main results. First, the aging of the society decreases the electricity demand but increases the city gas demand. Second, the shrink of population with the prevalence of nuclear families increases the electricity demand but decreases the city gas demand. The direction of the demand for each alternative depends on the balancing of the first and second effects. Third, the analysis also shows clear results about the own- and cross-price effects. Ongoing energy market reforms targeting price reduction would increase the energy demand with the possible substitutability between the two energy sources. Our case study of Japan is a lso applicable to other countries that will, have just started to, experience the similar demographic pattern of the aging society with energy market deregulation.
    Keywords: Demographic changes, aging society, energy markets, electricity and city gas demands
    Date: 2017–06
  10. By: Christian Pape; Arne Vogler; Oliver Woll; Christoph Weber (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen (Campus Essen))
    Abstract: We present a stochastic modelling approach to describe the dynamics of hourly electricity prices. The suggested methodology is a stepwise combination of several mathematical operations to adequately characterize the distribution of electricity spot prices. The basic idea is to analyze day-ahead prices as panel of 24 cross-sectional hours and to identify principal components of hourly prices to account for the cross correlation between hours. Moreover, non-normality of residuals is addressed by performing a normal quantile transformation and specifying appropriate stochastic processes for time series before fit. We highlight the importance of adequate distributional forecasts and present a framework to evaluate the distribution forecast accuracy. The application for German electricity prices 2015 reveal that: (i) An autoregressive specification of the stochastic component delivers the best distribution but not always the best point forecasting results. (ii) Only a complete evaluation of point, interval and density forecast, including formal statistical tests, can ensure a correct model choice.
    Keywords: Distribution forecasts, Electricity, Price forecasting, Panel data, Statistical tests
    JEL: Q47 N74
    Date: 2017–05
  11. By: Neuhoff, Karsten; Richstein, Jörn; May, Nils
    Date: 2017
  12. By: Hynek Lavicka; Jiri Kracik
    Abstract: We analyze the time series of the power loads of the 35 separated countries publicly sharing hourly data through ENTSO-E platform for more than 5 years. We apply the Multifractal Detrended Fluctuation Analysis for the demonstration of the multifractal nature, autocorrelation and the distribution function fundamentals. Additionally, we improved the basic method described by Kanterhardt, et al using uniform shuffling and surrogate the datasets to prove the robustness of the results with respect to the non-linear effects of the processes. All the datasets exhibit multifractality in the distribution function as well as in the autocorrelation function. The basic differences between individual states are manifested in the width of the multifractal spectra and in the location of the maximum. We present the hypothesis about the production portfolio and the export/import dependences.
    Date: 2017–06
  13. By: Cl\'emence Alasseur; Ivar Ekeland; Romuald Elie; Nicol\'as Hern\'andez Santib\'a\~nez; Dylan Possama\"i
    Abstract: We study the optimal design of electricity contracts among a population of consumers with different needs. This question is tackled within the framework of Principal-Agent problem in presence of adverse selection. The particular features of electricity induce an unusual structure on the production cost, with no decreasing return to scale. We are nevertheless able to provide an explicit solution for the problem at hand. The optimal contracts are either linear or polynomial with respect to the consumption. Whenever the outside options offered by competitors are not uniform among the different type of consumers, we exhibit situations where the electricity provider should contract with consumers with either low or high appetite for electricity.
    Date: 2017–06
  14. By: Tran, Jacob (RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Fuchs, Alexander (Research Center for Energy Networks (FEN), ETH Zurich)
    Abstract: In this paper, the cooperation between Transmission System Operator (TSO) and Distribution System Operator (DSO) for power balancing of the transmission system is analyzed, whereby an exemplary grid situation is simulated. Based on the model, an optimization problem is formulated for the utilization of flexible demand and generation. The objective of this study is the economically optimal usage of flexibilities in consideration of the known grid constraints. For this purpose, two optimization problems are being presented: the optimal deployment of flexibilities for the support of redispatch measures and the optimal application of the available flexible units as secondary reserve product in the given ancillary services scheme. In order to discuss different grid types, technical changes, as well as market and price structures, the respective optimization parameters are being defined. For instance, regarding the availability of flexibility units, PV and load profiles need to be analyzed in greater detail. Furthermore, the price sensitive function is shown, revealing fixed flexibility prices and a variable price-demand diagram. Three scenarios are being analyzed, giving examples of typical developments of the communication infrastructure with regard to a stronger TSO and DSO cooperation. The results quantify the potential of flexibilities as redispatch support and secondary reserve product, applying the above mentioned different parameters. We find that using distributed flexibilities is economically not suitable for the application as redispatch support. However, due to the presently high remuneration in the secondary reserve market, the utilization of distributed flexibilities can significantly lower the costs of the TSO operation.
    Keywords: flexibility; transmission system; TSO
    JEL: D40 Q41
    Date: 2016–12
  15. By: Siekmann, Manuel
    Abstract: Edgeworth cycles represent the leading concept to explain observed pricing patterns on retail gasoline markets and have been subject to numerous empirical investigations on an interday level. In this paper, I present unique evidence of the presence, causes, and price effects of intraday Edgeworth-type cycles for an entire OECD country, using high-frequency price data from German gasoline stations. I find vast evidence of intraday cycles across municipalities in Germany. Cycle asymmetry and intensity is stronger in more concentrated markets and decreases with a higher share of non-major brands. My analysis suggests that intraday cycles are a sign of competition with a price decreasing effect during evening hours, where consumers conscious of their purchase timing can benefit most.
    Keywords: Gasoline Markets,Fuel Prices,Edgeworth Cycles,Intraday Pricing
    JEL: L11 L71
    Date: 2017
  16. By: Zhang Jingchao (School of Economics and Management, Kochi University of Technology); Koji Kotani (School of Economics and Management, Kochi University of Technology); Tatsuyoshi Saijo (School of Economics and Management, Kochi University of Technology)
    Abstract: Household low-quality coal consumption is a main contributor to air pollution in China. In response, governmental subsidies on high-quality coal and promotion of new-type coal stoves have been implemented. However, to date, little is known about the effectiveness of these policies and determinants of consumption behavior between low-quality and high-quality coals. To fulfill this paucity, we conducted face-to-face surveys with 602 households in rural Beijing and collected the information of coal consumption, socioeconomic, cognitive and psychological factors. With the data, we empirically characterize the determinants of coal consumption and its switching behavior between high-quality and low-quality coals by bivariate probit and Tobit regressions, yielding the following principal results: (1) prosocial people are more likely to consume high-quality coal, and critical thinking disposition positively affects the probability to choose high-quality coal; (2) local environmental concern plays an important role in consumption behavior, but global environmental concern does not; (3) government policies appear to be efficient in that subsidies on high-quality coal reduce the likelihood of choosing low-quality coal and the promotion of new-type coal stoves facilitates the transition from low-quality to high-quality coal. Overall, the results suggest that cognitive, psychological factors and promotion policies can be considered significant in coal consumption behavior. Public education on critical thinking, local environment and prosociality as well as new-type coal stoves should be further promoted to accelerate the transition from low-quality to high-quality coal.
    Keywords: coal, air pollution, China
    Date: 2017–05
  17. By: Chiara Candelise; Gianluca Ruggieri
    Abstract: Community energy (CE) initiatives for investments in the energy sector have been progressively spreading across Europe and are increasingly proposed as innovative and alternative approaches to guarantee higher citizens participation in the transition toward cleaner energy systems. This paper focuses the attention on Italy, a Southern European country characterized by relatively low CE sector development. It fills a gap in the literature by eliciting and presenting novel and comprehensive evidence on the recent Italian CE sector development. Through a step-wise approach it systematically map and review Italian CE initiatives, exploring heterogeneity in their institutional characteristics and analysing implications in terms of outcomes delivered and citizens' engagement. It finds a very novel CE sector, still at its niche level and characterized by a wide diversity of implementation approaches. The analysis allows to identify two alternative patterns in institutional characteristics which differently shape citizens engagement and outcomes delivered. The role of policy and its relevance for a renewed CE sector growth is also highlighted and discussed.
    Keywords: Community energy, Institutional characteristics, Renewable energy, Citizen participation, Energy cooperatives
    JEL: O13 O35 P13 P32 Q4
    Date: 2017
  18. By: Frondel, Manuel; Sommer, Stephan
    Abstract: Dieser Artikel untersucht auf Basis einer Befragung von mehr als 5.000 Haushalten, wie viel die Haushaltsvorstände für Versorgungssicherheit mit Strom zu zahlen bereit sind. Alternativ zur Zahlungsbereitschaft (willingness to pay, WTP) wird auch nach der Bereitschaft gefragt, gegen eine Entschädigungszahlung auf ein gewisses Maß an Versorgungssicherheit zu verzichten (willingness to accept, WTA). In Übereinstimmung mit zahlreichen empirischen Studien finden wir mittlere WTA-Werte für Entschädigungsforderungen, die deutlich über den mittleren WTP-Werten der Zahlungsbereitschaft für die Vermeidung eines unangekündigten vierstündigen Stromausfalls liegen. Den Grund für diese Diskrepanz sehen wir darin, dass die bekundeten Entschädigungsforderungen für den Verzicht auf Versorgungssicherheit tendenziell über dem tatsächlichen Wert liegen, der der Versorgungssicherheit mit Strom beigemessen wird, wohingegen die dafür bekundete Zahlungsbereitschaft tendenziell untertrieben wird.
    Keywords: Zahlungsbereitschaft,bekundete Präferenzen,Energiewende
    JEL: D12 H41 Q41
    Date: 2017
  19. By: Giammario Impullitti; Richard Kneller; Danny McGowan
    Abstract: We study how demand shocks affect productivity by provoking technical change. Our model shows that increasing demand leads to technical change and productivity improvements through a direct market size effect and an indirect competition effect. We test the predictions using a natural experiment in the US corn industry where changes to national energy policy created exogenous increases in demand. Estimates show that the increase in demand caused technical change as corn producers adopted new technologies which in turn raised productivity by 5.7% per annum in the five years after the policy change. Although both channels are found to motivate technical change, the economic magnitude of the direct effect substantially outweighs the indirect effect.
    Keywords: demand, market size, technical change, productivity
    Date: 2017
  20. By: Fankhauser, Sam (Vivid Economics); Kazaglis, Alex (Vivid Economics); Srivastav, Sugandha (Vivid Economics)
    Abstract: This paper assesses the low-carbon economy in Asia: how large it is today and how well it will fare in the future. Using patent and trade data, it analyzes the potential of Asian economies to capture value from the design and export of low-carbon technologies, acknowledging that these are only two dimensions of a multidimensional low-carbon economy. It conducts country-level analysis to identify which technologies different countries can specialize in and potentially scale up. The work shows that, overall, Asia has an innovation specialization and revealed comparative advantage in climate change mitigation technologies. Particular strengths include efficient lighting, photovoltaics, and energy storage technologies. Further opportunities include nuclear and smart grids. However, within Asia, there are regional disparities, with countries such as the People’s Republic of China, Japan, and the Republic of Korea outperforming others. This paper highlights how the analytical framework it presents can be used to strategically inform environmental policy makers and concludes with an overview of the green growth policy tool kit.
    Keywords: climate change; economic growth; energy; environment; urban development
    JEL: Q42 Q43 Q54 Q56
    Date: 2017–01–27
  21. By: Rubem Polo Costa Mafra (Universidade Federal de Minas Gerais – UFMG); Márcia Siqueira Rapini (Cedeplar-UFMG); Tulio Chiarini (Instituto Nacional de Tecnologia - INT)
    Abstract: Starting from the concept of techno-economic paradigms developed by Freeman and Perez (1988) and by the articulation between productive and financial capital (Perez, 2002) in the consolidation of each Technological Revolution, this paper articulates innovation and financial bubbles. In the first four Technological Revolutions - Era of Mechanization; Era of Steam and the Railways; Era of Heavy Engineering, Steel and Electricity; And Oil, Automobile and Mass Production - the financial capitalwas responsible for economic speculation related to innovations and to the construction of a new industrial infrastructure.Productive capital took a lead in the construction of industrial infrastructure from the strong speculation and the detachment of real economy asset prices, that is, from the generation of a financial bubble. In contrast, a fifth Technological Revolution - the Microelectronic Era - has altered the dynamics of previous technological revolutions: the financialization of the economy changed the logic of the relationship between productive and financial capital. In other words, productive capital did not overlap with financial capital, which can be explained by profound structural transformations.
    Keywords: Technological revolutions, Financial bubbles, Capitalism crises
    JEL: O30 O31 O33
    Date: 2017–05
  22. By: Shim, Changsub
    Abstract: The majority of the measurements sites over Republic of Korea place PM2.5 concentrations above the national air quality standard of 25 microgram/m3/year, posing great concerns for the national environment and public health. This particulate matter (PM) pollution is often associated with transboundary transport of air pollutants throughout East Asian countries. This paper reviews and discusses the Korean government’s policies for mitigating PM pollution, and in particular, recent policies to control PM2.5, including a system introduced by the Korean Ministry of Environment (KMOE). In addition, I analyze the system and performance of cooperative programs for improving East Asian air quality, considering current approaches by the Acid Deposition Monitoring Network in East Asia (EANET), the Joint Research Project on Long-range Transboundary Air Pollutants in North-East Asia (LTP), the North-East Asian Subregional Programme for Environmental Cooperation (NEASPEC), and Tripartite Environment Minister Meeting (TEMM) as the basis for a comparative study, focusing on international coordination, communication, scientific activities, and institutional structure. Based on this analysis, I have generated some recommendations for improving international dialogue on air quality over East Asia.
    Keywords: Air pollution policy,East Asia,International cooperation,Korea,Particulate matter
    Date: 2017–03
  23. By: ITF
    Abstract: This report examines air pollution mitigation strategies in Mexico City. It identifies a series of measures that can strengthen current approaches to air pollution mitigation adopted in Mexico's capital as well as nationally. Recommendation include actions in policy areas such as emissions standards and testing, incentives for cleaner vehicles, fuel quality, inspection and maintenance, restrictions on vehicle use, parking regulation and speed limits, air quality plans, enhancement and promotion of sustainable transport modes as well as improving enforcement and public communication. The publication assembles the findings of a workshop organised by the ITF and the Development Bank for Latin America (CAF) together with the Ministry of Environment of Mexico City (SEDEMA) in January 2017. This report is part of the International Transport Forum’s Case-Specific Policy Analysis series. These are topical studies on specific issues carried out by the ITF in agreement with local institutions.
    Date: 2017–06–09
  24. By: Richard S.J. Tol (Department of Economics, University of Sussex; Department of Spatial Economics, Vrije Universiteit Amsterdam; Institute for Environmental Studies, Vrije Universiteit Amsterdam; Tinbergen Institute, Amsterdam; CESifo, Munich)
    Abstract: The private benefit of carbon is the value, at the margin, of the energy services provided by the use of fossil fuels. It is the weighted average of the price of energy times the carbon dioxide emission coefficient, with energy used as weights. The private benefits is here estimated, for the first time, at $411/tCO2. The private benefit is lowest for coal use in industry and highest for residential electricity; it is lowest in Kazakhstan and highest in Norway. The private benefit of carbon is much higher than the social cost of carbon.
    Keywords: private benefit of carbon; social cost of carbon; climate policy
    JEL: Q54
    Date: 2017–05
  25. By: Warwick J. McKibbin; Adele C. Morris; Peter J. Wilcoxen; Weifeng Liu
    Abstract: This paper examines carbon tax design options in the United States using an intertemporal computable general equilibrium model of the world economy called G-Cubed. Four policy scenarios explore two overarching issues: (1) the effects of a carbon tax under alternative assumptions about the use of the resulting revenue, and (2) the effects of a system of import charges on carbon-intensive goods (“border carbon adjustments”).
    Date: 2017–06
  26. By: Diederich, Johannes; Goeschl, Timo
    Abstract: In a climate system that is indifferent about where mitigation is carried out, the logic of comparative advantages favors abatement locations in developing and rapidly industrializing countries. There is evidence, however, that citizens of industrialized countries who voluntarily fund climate mitigation activities are not indifferent about the mitigation location. In our artifactual online experiment, subjects located in a European Union member state took a dichotomous choice between a cash prize and the verified mitigation of one metric ton of CO2. The treatment condition varied the location of the mitigation activity between the European Union and developing countries. We test whether the location impacts on the probability that the mitigation activity is chosen, harnessing between- and within-subject Variation in our panel data. Our evidence shows that subjects responded to the location being made salient, but, contrary to previous concerns, were indifferent between mitigation sites in the EU or developing countries.
    Date: 2017–06–07
  27. By: André Fontana
    Abstract: La population du globe s’accroit lentement à travers les âges pour atteindre de l’ordre de 1 milliard d’habitants au milieu du XIXe siècle. L’historique des périodes glaciaires fait apparaître à l’évidence des fluctuations du climat totalement indépendantes des activités humaines. Une approche du bilan thermique de la planète fait apparaître les causes possibles de ces énormes perturbations.
    Keywords: historique des glaciations et des interglaciations; activité solaire; population du globe
    Date: 2016–07–10
  28. By: Ralf Martin
    Abstract: The Great Recession and a sluggish economic recovery were instrumental in meeting the legally binding climate change targets that the UK has set for itself. But without more drastic policy interventions, it is unlikely that future targets will be met - unless the more extreme forecasts for the impact of Brexit on economic activity are realised. What's more, most Brexit scenarios would see the UK leaving the European Union's emissions trading system (EU ETS), which is a key instrument of climate policy all over Europe, including the UK. And deeper, not less, integration with European energy markets is going to be an important route to keeping power prices lower. These are among the conclusions of a new report from the Centre for Economic Performance (CEP) - the latest in a series of background briefings on key policy issues and manifesto promises in the June 2017 UK general election.
    Keywords: Brexit, climate change, UK government policy, European Union Emissions Trading System, EU ETS, UK 2017 General Election
    Date: 2017–06
  29. By: (Sans nom)
    Abstract: Les entreprises touchées par le marché du carbone québécois sont-elles favorables à celui-ci ? Quelles sont leurs préoccupations ? Quelles préférences ont-elles quant à l’utilisation des revenus du Fonds vert ? Voilà le type de questions auxquelles répond une enquête dont les résultats sont publiés aujourd’hui dans un rapport Bourgogne CIRANO-IEDDEC, Enquête sur les entreprises touchées par le Système de plafonnement et d’échange de droits d’émission de gaz à effet de serre du Québec, rédigé par Erick Lachapelle, Jacques Papy, Pierre-Olivier Pineau et Hélène Trudeau. Comprendre ce portrait est d’autant plus important aujourd’hui que la Californie a proposé une refonte majeure pour son marché, après 2020, qui pourrait venir ébranler le marché québécois et compliquer l’atteinte des cibles de réductions de gaz à effet de serre (GES) du Québec.
    Date: 2017–06–08
  30. By: Chia-Lin Chang (Department of Applied Economics Department of Finance National Chung Hsing University, Taiwan.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan And Discipline of Business Analytics University of Sydney Business School, Australia And Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain and Institute of Advanced Sciences Yokohama National University, Japan.)
    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, multifuel 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
  31. By: Chia-Lin Chang (National Tsing Hua University, Taiwan); Michael McAleer (National Tsing Hua University, Taiwan; University of Sydney Business School; Erasmus University Rotterdam, The Netherlands, Complutense University of Madrid, Spain and Yokohama National University, Japan.); Guangdong Zuo (National Tsing Hua University, Taiwan)
    Abstract: Recent research shows that efforts to limit climate change should focus on reducing emissions of carbon dioxide over other greenhouse gases or air pollutants. Many countries are paying substantial attention to carbon emissions to improve air quality and public health. The largest source of carbon emissions from human activities in some countries in Europe and elsewhere is from burning fossil fuels for electricity, heat, and transportation. The price of fuel influences carbon emissions, but the price of carbon emissions can also influence the price of fuel. Owing to the importance of carbon emissions and their connection to fossil fuels, and the possibility of Granger (1980) causality in spot and futures prices, returns and volatility of carbon emissions, it is not surprising that crude oil and coal have recently become a very important research topic. For the USA, daily spot and futures prices are available for crude oil and coal, but there are no daily spot or futures prices for carbon emissions. For the EU, there are no daily spot prices for coal or carbon emissions, but there are daily futures prices for crude oil, coal and carbon emissions. For this reason, daily prices will be used to analyse Granger causality and volatility spillovers in spot and futures prices of carbon emissions, crude oil, and coal. A likelihood ratio test is developed to test the multivariate conditional volatility Diagonal BEKK model, which has valid regularity conditions and asymptotic properties, against the alternative Full BEKK model, which has valid regularity conditions and asymptotic properties under the null hypothesis of zero off-diagonal elements. Dynamic hedging strategies using optimal hedge ratios will be suggested to analyse market fluctuations in the spot and futures returns and volatility of carbon emissions, crude oil and coal prices.
    Keywords: Carbon emissions; Fossil fuels; Crude oil; Coal; Low carbon targets; Green energy; Spot and futures prices; Granger causality and volatility spillovers; Likelihood ration test; Diagonal BEKK; Full BEKK; Dynamic hedging
    JEL: C58 L71 O13 P28 Q42
    Date: 2017–05–31

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