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on Energy Economics |
| By: | Chadi ABDALLAH (FERDI); Roland Kangni KPODAR (International Monetary Fund (IMF)) |
| Abstract: | This paper assesses the dynamic pass-through of crude oil price shocks to retail fuel prices using a novel database on monthly retail fuel prices for 162 countries. The impulse response functions suggest that on average, a one cent increase in crude oil prices per liter translates into a 1.2 cent increase in the retail gasoline price at peak level six months after the shock. However, the estimates vary significantly across country groups, ranging from about 0.5 cent in MENA countries to two cents in advanced economies. The results also show that positive oil price shocks have a larger impact than negative price shocks on the retail gasoline price. Finally, the paper underscores the importance of the new dataset in refining estimates of the fiscal cost of incomplete pass-through. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3667&r=ene |
| By: | Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic; Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Namesti Winstona Churchilla 4, 13067 Prague, Czech Republic); Jan Malek (Universiteit van Amsterdam, Amsterdam); Lukas Recka (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | This paper provides the first academic economic simulation analysis of the impact of increase in predominantly German wind and solar energy production on the Czech electricity transmission network. To assess the exact impact on the transmission grid, updated state-of-the-art techno-economic model ELMOD is employed. Two scenarios for the year 2025 are evaluated on the basis of two representative weeks. The first scenario is considered as baseline and models currently used production mix. The second scenario focuses on the effect of German Energiewende policy on the transmission networks as expected in 2025. The results confirm that higher feed-in of solar and wind power increases the total transport of electricity between transmission system operator areas as well as the average load of lines and volatility of flows. Also, an increase in number of critical high-load hours is observable. Taking into account only the Czech transmission system, considerable rise both in transported volume and volatility are observed only on border transmission lines, not inside the country. Moreover, our qualitative analysis shows that all these mentioned effects are strenghtened by the presence of German-Austrian bidding zone. |
| Keywords: | Energiewende, wind, solar, transmission networks, ELMOD |
| JEL: | L94 Q21 Q48 C61 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2017_06&r=ene |
| By: | Chadi ABDALLAH (FERDI); Roland Kangni KPODAR (Fonds Monétaire international) |
| Abstract: | This paper assesses the dynamic pass-through of crude oil price shocks to retail fuel prices using a novel database on monthly retail fuel prices for 162 countries. The impulse response functions suggest that on average, a one cent increase in crude oil prices per liter translates into a 1.2 cent increase in the retail gasoline price at peak level six months after the shock. However, the estimates vary significantly across country groups, ranging from about 0.5 cent in MENA countries to two cents in advanced economies. The results also show that positive oil price shocks have a larger impact than negative price shocks on the retail gasoline price. Finally, the paper underscores the importance of the new dataset in refining estimates of the fiscal cost of incomplete pass-through. |
| Date: | 2016–12 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3669&r=ene |
| By: | Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic; Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Namesti Winstona Churchilla 4, 13067 Prague, Czech Republic); Jan Malek (Universiteit van Amsterdam, Amsterdam); Lukas Recka (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | This paper focuses on the influence of increased wind and solar power production on the transmission networks in Central Europe. The model ELMOD is employed. Two development scenarios for the year 2025 are evaluated on the basis of four representative weeks. The first scenario focuses on the effect of Energiewende on the transmission networks, the second one drops out nuclear phase-out and thus assesses isolated effect of increased feed-in. The results indicate that higher feed-in of solar and wind power increases the exchange balance and total transport of electricity between transmission system operator areas as well as the average load of lines and volatility of flows. Solar power is identified as a key contributor to the volatility increase, wind power is identified as a key loop-flow contributor. Eventually, it is concluded that German nuclear phase-out does not significantly exacerbate mentioned problems. |
| Keywords: | Energiewende, RES, transmission networks, congestion, loop flows, ELMOD, Central Europe |
| JEL: | L94 Q21 Q48 C61 |
| Date: | 2017–02 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2017_05&r=ene |
| By: | Gandenberger, Carsten |
| Abstract: | A functional analysis of the TIS for wind energy in China has revealed a great disparity in performance with respect to different functions of innovation. A particular strength of the Chinese TIS is the rapid diffusion of wind power equipment which presupposes the development of domestic production capabilities, the successful adoption of existing technology, the creation of markets and legitimacy as well as the ability to mobilize financial resources. Furthermore, Chinese universities and research institutes have quickly expanded their capabilities in the area of basic research. In contrast, China's performance in the area of applied research is mixed. Although the growth in the number of transnational and domestic wind energy patents indicates that China is now among the most inventive countries in the world, a more detailed analysis suggests that inventions are less focused on the most relevant technology subfields and that Chinese firms are reluctant to engage in innovation. The most prominent drawback of the centralized planning approach in China are governance deficits relating to the integration of wind energy into China's electricity grid as well as to the lack of complementary infrastructure for energy transmission and storage. These deficits result in high curtailment rates, low incentives for quality oriented innovation, and a low overall efficiency of wind energy in China. |
| Keywords: | Technological Innovation System,Functions of Innovation,China,Wind Energy |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s072017&r=ene |
| By: | Esra Ball? (Çukurova University); Salih Çam (Çukurova University); Müge Manga (Çukurova University); Çiler Sigeze (Çukurova University) |
| Abstract: | This study investigates the relationship between energy use, GDP, carbon dioxide emissions, population, financial development, and industrialization utilizing ARDL and artificial neural network for Turkey. The data covers the period from 1968 to 2013. The study performed a two stage analysis. At the first stage, we examined the long run relationship and causality between variables. The variables are found to be cointegrated. The Granger causality test results shows that there is a unidirectional causality running from energy use to both carbon dioxide emissions and industrialization. According to the artificial neural network results, the most important effect on energy use comes from GDP. The predicted energy use from 1968 to 2013 has maximum absolute error of % 11. 31 and minimum absolute error of %0.07. Neural network evidence shows that the R-square coefficient is 98% for the sample period. |
| Keywords: | Energy use, ARDL, Neural network, Turkey |
| JEL: | C10 Q43 C22 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:4607826&r=ene |
| By: | Beatriz Martínez Martínez (Dpto. Finanzas Empresariales); Hipolit Torro Enguix (Universitat de València) |
| Abstract: | This is the first paper to discuss the spark spread risk management using electricity and natural gas futures. We focus on three European markets in which the natural gas share in the fuel mix varies considerably: Germany, the United Kingdom, and the Netherlands. We find that spark spread returns are partially predictable, and consequently, the Ederington and Salas (2008) minimum variance hedging approach should be applied. Hedging the spark spread is more difficult than hedging electricity and natural gas price risks with individual futures contracts. Whereas spark spread risk reduction for monthly periods produces values of between 20.05 and 48.90 per cent, electricity and natural gas individual hedges attain reductions ranging from 31.22 to 69.06 per cent. Results should be of interest for agents in those markets in which natural gas is part of the fuel mix in the power generation system. En este documento se aborda por primera vez en la doctrina la gestión del riesgo del spark spread utilizando futuros sobre la electricidad y el gas natural. Se ha focalizado la atención en tres mercados europeos en los que la participación del gas natural en el mix de generación es muy diferente: Alemania, Reino Unido y Holanda. Un primer resultado es que las rentabilidades del spark spread son parcialmente predecibles y, en consecuencia, el enfoque de cobertura mínima varianza propuesto en Ederington y Salas (2008) debe ser aplicado. La cobertura del riesgo del spark spread resulta ser mucho más difícil que la cobertura individualizada del riesgo de precio de la electricidad y el gas natural con sus respectivos contratos de futuros. Mientras que la reducción del riesgo alcanzada para el spark spread para coberturas mensuales obtiene reducciones de riesgo de entre el 21,22% y el 48,90%, las coberturas individualizadas de ambas commodities alcanzan reducciones de entre el 31,22% y el 69,06%. Estos resultados son de interés para aquellos agentes en cuyos mercados en el gas natural forma parte del mix de generación eléctrico. |
| Keywords: | mercado del gas natural, mercado de la electricidad, contratos de futuro, contratos forward, spark spread, ratio de cobertura, efectos estacionales. natural gas market, electricity market, futures contracts, forward contracts, spark spread, hedging ratio, seasonal effects. |
| JEL: | G11 G13 L94 L95 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:ivi:wpasec:2017-01&r=ene |
| By: | Chang, Youngho (School of Business, Singapore University of Social Sciences); Lee, Justin (School of Social Sciences, Nanyang Technological University); Ang, Wei Xiang (School of Social Sciences, Nanyang Technological University); Chua, Jing Yi (School of Social Sciences, Nanyang Technological University) |
| Abstract: | Energy Market Integration (EMI) in the ASEAN through the ASEAN Power Grid (APG) is considered to improve the welfare of the economy. However, the EMI through power grids incurs some costs due to transmission losses, among others and the pricing of transmission losses ought to consider the marginal effect of demand and supply of both generators and consumers. Charging only a tariff as a function of the distance transmitted as access costs ignores the effect of a marginal change in demand or supply from consumers and generators respectively on the transmission grid. This leads to a poor signal to the market, leading to suboptimal decisions made by economic agents. The marginal cost pricing of transmission losses would reflect the opportunity costs of alternative options better and provide better incentives for investment, consumption and generation, leading to increases in welfare. This study aims to analyze how the locational marginal pricing (LMP) of transmission losses influences an optimal energy mix and energy trading in the ASEAN and derive policy implications for completing the APG. Four energy trade scenarios of 0%, 25%, 50%, and 75% with LMP mechanism of transmission losses appear to provide benefits to the countries under the APG as the total cost of electricity generation declines when power trade increases among ASEAN countries. The underpinnings of positive results strongly suggest ASEAN member countries seriously consider to enhance grid interconnection to realize the efficiency of power trading infrastructure. |
| Keywords: | Energy Market Integration; Transmission losses; Locational marginal pricing of transmission loses; Grid interconnection; Power trading |
| JEL: | F15 O13 Q49 |
| Date: | 2017–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:xjt:rieiwp:2017-10&r=ene |
| By: | Arnaud MILLIEN |
| Abstract: | The 7th Sustainable Development Goal aims to "ensure access to affordable, reliable, sustainable and modern energy for all". Because the cost to increase electrical capacity in Africa alonehas been estimated at $800bn, this article investigates the extent to which electricity reliability could contribute to a reduction in the marginal cost of grid extension by attracting more customers. Using lightning as an instrument for outages severity, the article evaluates the assumption that less uncertainty about electricity availability would lead to a larger number of connected households.The article finds that a one percentage point increase in electricity reliability would yield a 0.67 percentage point increase in connections. Therefore, delivering fully reliable electrical power would allow an electricity company to achieve its targeted growth of customer base 15 months earlier than planned.The effect of reliability is highest for middle-rich households, which are the most reluctant to subscribe in the presence of total, severe or partial outages. A one-percentage-point upgrade in reliability increase the likelihood that these households will be connected by 1.28 percentage points.This article also finds that households are more sensitive to outages in areas where outages are less frequent. In addition, the impact of reliability on households decision to connect could be at least 5% greater than the effect of poverty ; if the frequency of outages is too high, the wealth or poverty effect might vanish and households would respond only to the excessively low reliability.These results confirm the uncertainty assumption, that is, regular and severe outages yield an uninsurable context that deters households from subscribing to the electric service. |
| Keywords: | electrification, reliability, outages, Kenya, instrumental variable |
| JEL: | Q4 Q1 O18 O55 C26 C52 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3868&r=ene |
| By: | Arnaud MILLIEN |
| Abstract: | The 7th Sustainable Development Goal aims to "ensure access to affordable, reliable, sustainable and modern energy for all". Because the cost to increase electrical capacity in Africa alonehas been estimated at $800bn, this article investigates the extent to which electricity reliability could contribute to a reduction in the marginal cost of grid extension by attracting more customers. Using lightning as an instrument for outages severity, the article evaluates the assumption that less uncertainty about electricity availability would lead to a larger number of connected households.The article finds that a one percentage point increase in electricity reliability would yield a 0.67 percentage point increase in connections. Therefore, delivering fully reliable electrical power would allow an electricity company to achieve its targeted growth of customer base 15 months earlier than planned.The effect of reliability is highest for middle-rich households, which are the most reluctant to subscribe in the presence of total, severe or partial outages. A one-percentage-point upgrade in reliability increase the likelihood that these households will be connected by 1.28 percentage points.This article also finds that households are more sensitive to outages in areas where outages are less frequent. In addition, the impact of reliability on households decision to connect could be at least 5% greater than the effect of poverty ; if the frequency of outages is too high, the wealth or poverty effect might vanish and households would respond only to the excessively low reliability.These results confirm the uncertainty assumption, that is, regular and severe outages yield an uninsurable context that deters households from subscribing to the electric service. |
| Keywords: | electrification, reliability, outages, Kenya, instrumental variable |
| JEL: | Q4 Q1 O18 O55 C26 C52 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3870&r=ene |
| By: | Jennifer MBABAZI MOYO (International Monetary Fund (IMF)); Ralf KRÜGER (FERDI); Driss BELAMINE (African Development Bank (AfDB)); Anna von WACHENFELT (FERDI) |
| Abstract: | As Africa’s energy supply needs to be stepped up urgently to satisfy the continents’ growing energy needs and avoid some of the serious economic and social costs of the deficiency, renewable energy technologies have emerged as additional alternatives to build the relevant energy infrastructure while aligning Africa’s growth with the Sustainable Development Goals (SDGs). They currently carry a substantial economic cost, and technological choices in the sector are long-term and have important implications. The share of modern renewables (i.e. solar, wind and geothermal) in Africa’s energy mix currently stands at only 0.4% but is increasing. Solar technologies have some very positive characteristics, but are not yet competitive in all circumstances. Nevertheless, financing for these technologies is increasingly available and production costs are coming down.Depending on a specific country’s situation, PV and CSP are valuable contributions to the energy mix, with CSP recommendable for more economically advanced countries given its considerably higher cost. African countries should consider well whether to engage in such expensive technology at this point in time given the expected cost-reductions in the medium to long term. PV, on the other hand is already cost-competitive and holds much promise for Africa. While the importance of off-grid PV systems is well-recognized, the discussion in this paper focuses on grid-connected systems that have experienced the greatest expansion. It will be imperative for African countries to develop a conducive environment so as to support the growth of the appropriate kind of solar energy in Africa.Keywords: Solar power, Concentrated Solar Power (CSP), Photovoltaic (PV), Renewable energy, Africa. |
| Keywords: | Africa, Solar power, concentrated solar power, Photovoltaic, Renewable energy |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3703&r=ene |
| By: | Jennifer MBABAZI MOYO (Fonds Monétaire international); Ralf KRÜGER (FERDI); Driss BELAMINE (Banque africaine de développement (BAfD)); Anna von WACHENFELT (FERDI) |
| Abstract: | As Africa’s energy supply needs to be stepped up urgently to satisfy the continents’ growing energy needs and avoid some of the serious economic and social costs of the deficiency, renewable energy technologies have emerged as additional alternatives to build the relevant energy infrastructure while aligning Africa’s growth with the Sustainable Development Goals (SDGs). They currently carry a substantial economic cost, and technological choices in the sector are long-term and have important implications. The share of modern renewables (i.e. solar, wind and geothermal) in Africa’s energy mix currently stands at only 0.4% but is increasing. Solar technologies have some very positive characteristics, but are not yet competitive in all circumstances. Nevertheless, financing for these technologies is increasingly available and production costs are coming down.Depending on a specific country’s situation, PV and CSP are valuable contributions to the energy mix, with CSP recommendable for more economically advanced countries given its considerably higher cost. African countries should consider well whether to engage in such expensive technology at this point in time given the expected cost-reductions in the medium to long term. PV, on the other hand is already cost-competitive and holds much promise for Africa. While the importance of off-grid PV systems is well-recognized, the discussion in this paper focuses on grid-connected systems that have experienced the greatest expansion. It will be imperative for African countries to develop a conducive environment so as to support the growth of the appropriate kind of solar energy in Africa.Keywords: Solar power, Concentrated Solar Power (CSP), Photovoltaic (PV), Renewable energy, Africa. |
| Keywords: | Africa, Solar power, concentrated solar power, Photovoltaic, Renewable energy |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:fdi:wpaper:3698&r=ene |
| By: | Badia, Marc; Duro, Miguel; Jorgensen, Bjorn N.; Ormazabal, Gaizka |
| Abstract: | This paper studies the spillover effects of firms' off-balance sheet disclosures. We focus our analysis on the mandatory disclosure of oil and gas (O&G) reserves, a setting in which off-balance sheet information is particularly important to understand industry competition. Using a comprehensive sample of Canadian and US O&G producers we document two novel results. First, in contrast to prior research on the informational effect of peers' earnings announcements, we find evidence that firms' exhibit lower stock returns when their peers announce more positive news about O&G reserves. Second, consistent with peers' disclosures affecting managerial decision making, we document that larger increases in peers' reserves are accompanied by an increase in firms' investment. We corroborate our results by exploiting three sources of institutional variation. First, the North-American pipeline infrastructure constrains the supply of natural gas, and thus competition in the gas market, but not the supply of oil. Second, the introduction of the fracking technology substantially altered the competition dynamics in the natural gas market. Third, mandatory O&G disclosure rules were modified in Canada and the US in a similar fashion, albeit at different points in time. Overall, our evidence suggests that off-balance sheet disclosures have substantial market-wide effects in the form of both financial and real externalities. |
| Keywords: | Disclosure of Oil and Gas Reserves; Disclosure Rules; Informational Spillovers; Real Effects of Disclosure Regulation. |
| JEL: | M41 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:12152&r=ene |
| By: | Llop Llop, Maria |
| Abstract: | Environmental economics has proposed the taxation on energy as an effective way to mitigate the pollution caused by the production and use of energy based on fossil fuels. From a practical point of view, however, taxes on energy are thought to have a detrimental impact on the economy that reduce competitiveness and diminish economic welfare, especially if the tax burden is (completely or partially) translated to final prices. This paper provides a method to analyse by how much energy prices influence the price formation mechanism of an economy. The model used, which captures the general equilibrium channels existing among energy activities, the rest of the production system and households, is based on the accounting identities reflected in a Social Accounting Matrix (SAM). The SAM price model allows to identify the role of energy prices into the cost transmission and the price definition process. The empirical application, which is for the Catalan economy, shows a considerable influence of energy prices on both production and final prices. The results also show that the different forms of energy exert asymmetric impacts on the costs of sectors and consumers. Keywords: energy prices, cost linkages, price transmission, social accounting matrix. JEL Classification: C69. D58. Q41. |
| Keywords: | Energia -- Preus, 338 - Situació econòmica. Política econòmica. Gestió, control i planificació de l'economia. Producció. Serveis. Turisme. Preus, |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:urv:wpaper:2072/290764&r=ene |
| By: | Murat Cem Demir (Munzur Universty) |
| Abstract: | There are many sociologists and philosophers following Ibn Khaldun's philosophy and thought. But the contemporary representatives of Khaldun's history and philosophy of society have not examined climate, technology, history, politics and social problems, taking into account the recent momentum of the contemporary world.This study examines Fukuyama and Wallerstein's philosophy of politics, history and society, the perception of the technology of Kompridis, the representations of Asaf Bayat's subaltern and subaltern in the contemporary world, and finally, ta Chakrabarty's view of climate issues; aims to argue with khaldun's views. While khaldun has a relatively optimistic sense of modernization, most of the representatives we have listed above have a pessimistic perception. When Fukuyama refers to the end of history, Khaldun refers to a continuous cycle, while Kompridis speaks of the destruction of technology, Khaldun emphasizes the importance of technology. Subaltern finds himself in the rural-urban contrast in the best way, and Bayat's case is quite different from Khaldun. Chakrabarty speaks about the influence of man over the climate, while Khaldun speaks about the influence of climate and geography on human behavior. Khaldun's philosophical optimism dominates his perception of history, society and politics. While emphasizing the temporaryity of social problems in the period he lived, the thinkers we cited emphasize the permanence. |
| Keywords: | Ibn Khaldun, philosophy, politics, history and society |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:5007717&r=ene |
| By: | Ross McKitrick (Department of Economics, University of Guelph, Guelph ON Canada) |
| Abstract: | This paper makes two contributions to the economics of pollution policy. First, many studies have looked at the effects of emission taxes in the absence of regulations and vice versa, but the implications for optimal tax design when one is layered on top of the other have been ignored, even though the practice is commonly observed. I develop a model of multiple polluting sectors capable of providing a tractable characterization of this case. Second, numerical modeling has shown that tax interactions can yield a positive damage threshold below which any emission tax is welfare-reducing even if marginal damages are positive, but this has largely been ignored in both the theoretical and policy literatures. I show that a positive damage threshold occurs when the policy is not revenue-raising and/or the rest of the tax system is not optimized, but can also occur in a second-best context with optimal taxes and full revenue-recycling, a result not previously shown. Introducing a pollution tax when one firm is already subject to an emissions constraint yields a positive damage threshold that goes up, the more the regulation distorts the income tax base. Hence, under more general conditions than have previously been realized, pollution taxes are not guaranteed to raise welfare even when marginal damages are positive and revenues are fully recycled. |
| Keywords: | emissions taxes, tax interactions, second-best, carbon taxes |
| JEL: | H21 H23 Q54 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:gue:guelph:2017-05&r=ene |
| By: | Mahfuz Kabir |
| Abstract: | The quality of the Gross Domestic Product in developing countries is as important as its sizegiven environmental degradation due to the aggressive extraction of subsoil minerals fromthe geo-sphere to accommodate production processes as well as emissions into the biosphere.Green national accounting is one way to come up with more durable environmentalpolicymaking, which does not compromise ongoing economic expansion in developing andemerging economies. The present paper is an attempt to conduct a valuation of the threemost important exhaustible natural resources, viz., natural gas, coal and hard rock, viathe System of Environmental-Economic Accounting, which has not yet been carried out inBangladesh. The study applies the net present value method for natural resources for thispurpose. We prepare physical and monetary balance sheets for each of the three resourcesfor the most recent accounting years. We test the sensitivity of the opening balance by usingdifferent discount rates for the selected minerals. The results reveal that the stock value ofcoal is about eight times higher than that of natural gas even though the latter is regardedas the most important subsoil mineral among the top three resources in Bangladesh. Thefindings of this study will be of use to policy makers to work on a more environmentallysensitive national accounting system. |
| URL: | http://d.repec.org/n?u=RePEc:snd:wpaper:122&r=ene |
| By: | Matej Nevrla (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | In this paper, we perform analysis of systemic risk in the financial and energy sector in Europe. In our investigation, we work with daily time series of CDS spreads. We employ factor copula model with GAS dynamics of Oh and Patton (2016) for estimation purposes of dependency structures between market participants. Based on the estimated models, we perform Monte Carlo simulations in order to obtain future values of CDS spreads, and then we measure probability of systemic events in given time points. We conclude that substantially higher systemic risk is present within the financial sector than in the energy sector. We also find that the most systemic vulnerable financial and energy companies come from Spain. |
| Keywords: | Credit Default Swap, Energy Sector, Factor Copula, Financial Sector, Generalized Autoregressive Score Model, Systemic Risk |
| JEL: | C53 C55 C58 G17 |
| Date: | 2017–05 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2017_11&r=ene |
| By: | Peter Bradley (University of the West of England, Bristol); Glenn Parry (University of the West of England, Bristol); Nicholas O’Regan (University of the West of England, Bristol) |
| Abstract: | The paper presents and applies a novel framework for incorporating ethical concerns for the natural environment and wellbeing into business design. In this sense we are directly confronting sustainable development. Within the context of business ethics, sustainable development can be seen as the application of ethical concerns for the natural environment and wellbeing to societal provisioning (‘meeting needs’). A novel framework proposed in this work synthesises 3 previous business model frameworks and builds in new categories and social, environmental and economic considerations to make it ‘fit’ for the purpose of investigating business models for sustainable development. The contribution made by the novel framework is through its new categories, incorporation of environmental and social considerations, and the ‘torch light articulation’ which aids communication of the concepts. The framework is applied to a case study of an energy provider, allowing a rich and powerful understanding of how the energy company’s business model works in practice and providing new insight of the interaction between different types of value: social, environmental and economic and how context shapes such value. |
| Keywords: | Business model; sustainability; servitization; sustainable business; sustainable development |
| Date: | 2016–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:uwe:wpaper:20161606&r=ene |
| By: | Habla, Wolfgang; Winkler, Ralph |
| Abstract: | We analyse a principal-agent relationship in the context of international climate policy. Principals in two countries first decide whether to merge domestic emission permit markets to an international market, then delegate the domestic permit supply to an agent. We find that principals select agents caring less for environmental damages than they do themselves in case of an international market regime, while they opt for self-representation in case of domestic markets. This strategic delegation incentive renders the linking of permit markets less attractive and constitutes a novel explanation for the reluctance to establish non-cooperative international permit markets. |
| Keywords: | non-cooperative climate policy,political economy,emissions trading,linking of permit markets,strategic delegation |
| JEL: | D72 H23 H41 Q54 Q58 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:17025&r=ene |
| By: | Ondrej Filip (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic); Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic; Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Namesti Winstona Churchilla 4, 13067 Prague, Czech Republic); Ladislav Kristoufek (Institute of Economic Studies, Faculty of Social Sciences, Charles University in Prague, Smetanovo nabrezi 6, 111 01 Prague 1, Czech Republic) |
| Abstract: | The article investigates the connections between the prices of biofuels and many traded commodities and other relevant assets in Europe, USA and Brazil. The analysis uses a comprehensive dataset covering price data for 32 relevant traded titles over the period 2003-2015. Main contribution of this article is a combination of minimum spanning tree and hierarchical tree approaches with expert economic understanding of biofuels market leading to identification of price connections in a complex trading system. Our analysis of mutual price connections discovers the major defining features of world leading biofuels markest over the last decade. We provide characteristics of main bioethanol and biodiesel markets with respect to technical and local features of the production and consumption of particular biofuels. |
| Keywords: | biofuels, networks, minimal spanning tree, hierarchical tree |
| JEL: | C38 Q16 Q42 |
| Date: | 2017–03 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2017_07&r=ene |
| By: | Berlo, Kurt; Wagner, Oliver; Drissen, Isabel; Baur, Stephan; Theuer, Laura |
| Abstract: | Stadtwerke sind im Ruhrgebiet strukturprägend und haben eine lange Tradition. Sie sind fester Bestandteil der Akteurskonstellation im Energiebereich der Emscher-Lippe-Zone. Schon heute zeichnen sich die Stadtwerke des Ruhrgebiets vielfach dadurch aus, dass sie die mit der Energiewende verbundenen Chancen nutzen. Ihre technische und gesellschaftliche Struktur entspricht weitgehend den mit der Energiewende verbundenen Transformationsprozessen hin zu einer stärkeren Dezentralität der Erzeugung und der Demokratisierung der Energieversorgung. Die meisten Stadtwerke des Ruhrgebiets sind auf mehreren Wertschöpfungsstufen im Energiebereich tätig. In der Stromerzeugung haben sie einen Schwerpunkt im Bereich der Kraft-Wärme-Kopplung und bei erneuerbaren Energien. Zudem sind sie vielerorts Partner und teilweise sogar Mitinitiator bürgerschaftlichen Engagements zum Ausbau erneuerbarer Energien. Als Verteilnetzbetreiber für Strom, Gas und Wärme sorgen sie vielerorts für die Integration und Verteilung erneuerbarer Energien. Die Energiewende findet weitgehend in den örtlichen Verteilnetzen statt und bedeutet für die Stadtwerke des Ruhrgebiets eine Zunahme an komplexen Koordinierungsfunktionen und teilweise auch die Herausbildung völlig neuer Aufgaben. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuprep:10&r=ene |
| By: | James Cust; David Mihalyi |
| Keywords: | rousource curse, ecojnomic growth, forecasting, forecast erroes, news shocks, institutions |
| JEL: | O40 O43 Q33 Q35 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:193&r=ene |
| By: | Yoon, Haeyeon (Sogang University); Heshmati, Almas (Jönköping University, Sogang University) |
| Abstract: | In an attempt to verify the pollution haven hypothesis, this study investigates the impact of environmental regulations on foreign direct investment (FDI). We use Korean outward FDI data covering the manufacturing sector for 2009-15. The study not only considers the stringency but also the enforcement of environmental regulations when measuring the degree of the host country's environmental regulations. Since the pollution haven's effects indicate moving the polluting production stages from the home country to other (host) countries, we distinguish between investments in the 'production' part from that in the non-production part using location information about the host country. The main results of the estimation of a FDI model show that the stricter the regulations in host countries in Asia the lower the FDI both intensively and extensively to those countries. This supports the prevalence of the effects of pollution havens. However, before we separate the FDI into the production part, the effect of environmental regulations on FDI is hindered by the FDI in the non-production part. The results indicate that environmental regulations are determinants of FDI in the production part, while environmental regulations do not have a significant effect on FDI decisions when the entire FDI is considered. |
| Keywords: | pollution haven hypothesis, environmental regulation, foreign direct investment |
| JEL: | F23 K32 L51 Q56 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp10897&r=ene |
| By: | Paul Hallwood (University of Connecticut); Stuart Sinclair (Lloyds Bank) |
| Abstract: | Our original monograph, Oil, Debt and Development: OPEC in the Third World was re-issued in 2016. As there was not enough time to write a new Preface reflecting how our ideas had stood the test of time, we offer this short paper touching on some of the book’s main themes, in particular, the nature of OPEC as a cartel, the terms of trade between oil prices and developing country non-oil primary commodity export prices, the generosity of Arab foreign aid, oil prices and oil importing countries’ foreign debts, and the importance of migrant worker remittances from Arab OPEC host countries to the main sending countries. |
| Keywords: | OPEC, Arab aid, oil exports, oil shock |
| JEL: | F5 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2017-16&r=ene |
| By: | Frondel, Manuel |
| Abstract: | Trotz des fortschreitenden massiven Rückgangs der Beschäftigtenzahlen in der Solarindustrie bezeichnen Politik und Lobbyisten die jährlich 25 Mrd. teure Förderung erneuerbarer Energien als "Jobmotor". Diese RWI Position legt eine Bestandsaufnahme der Beschäftigungsentwicklung im Bereich alternativer Energietechnologien zur Stromerzeugung vor. Die Gegenüberstellung von Brutto- und Nettobeschäftigungseffekten begründet Zweifel, ob am Ende der Bilanz überhaupt ein Plus stehen kann. Denn den neu geschaffenen Jobs im Erneuerbaren-Sektor stehen gekürzte oder nicht realisierte Stellen in der konventionellen Stromerzeugung sowie in anderen (durch die EEG-Zahlungen betroffenen) Branchen gegenüber. Insgesamt kommt die RWI Position zu dem Schluss, dass die Subventionierung erneuerbarer Energien kein Jobwunder ausgelöst hat, und jene Arbeitsplätze, die in dem Bereich neu entstanden sind, teuer erkauft wurden. |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwipos:69&r=ene |
| By: | Henri-Louis VEDIE |
| Abstract: | Chinese investors are increasingly interested in Africa. Some criticize them for privileging mining investments. A 2017 analysis of these investments shows that investments in mining have not been the only ones privileged by the Chinese operators. Many other sectors such as transport and energy have benefited from Chinese investments, much more so than the mining sector, for example. |
| Date: | 2017–04 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb-17/15&r=ene |
| By: | Lee, Sang-Ho; Xu, Lili |
| Abstract: | This paper examines an endogenous timing game in product differentiated duopolies under price competition when emission tax is imposed on environmental externality. We show that a simultaneous-move (sequential-move) outcome can be an equilibrium outcome in a private duopoly under significant (insignificant) environmental externality, but this result can be reversed in a mixed duopoly. We also show that when environmental externalities are significant, public leadership yields greater welfare than private leadership, and that public leadership is more robust than private leadership as an equilibrium outcome. Finally, we find that privatization can result in a public leader becoming a private leader, but this worsens welfare. |
| Keywords: | Emission tax; Endogenous timing; Mixed duopoly; Private duopoly |
| JEL: | D6 L5 Q28 |
| Date: | 2017–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80342&r=ene |
| By: | Eder, Andreas |
| Abstract: | This paper investigates the existence and the degree of economies of diversification for small-scaled, renewable-fuelled cogeneration systems using 2014 cross-sectional data from 67 Austrian biogas plants. In addition, cost efficiency of those biogas plants is estimated with a non-parametric linear programming technique, known as Data Envelopment Analysis. This is the first study applying the methodology proposed by Chavas and Kim (2010). Economies of diversification are decomposed into three additive parts: a part measuring complementarity among outputs; a part reflecting economies of scale; a part reflecting convexity. Furthermore, this paper extends the decomposition introduced by Chavas and Kim (2010) in such a way that the contribution of each input to economies of diversification and its components can be investigated. The results indicate substantial cost savings from diversification. For very-small scaled plants ( 250 kWel) positive complementarity and convexity effects are the main source of economies of diversification and outweigh the negative effect from scale diseconomies. In addition to substantial fuel/feedstock cost reductions, significant costs saving effects from the jointness in labour and other inputs positively contribute to the complementarity effect. While on average capital and labour costs positively contribute to economies of scale, feedstock costs work in the direction of diseconomies of scale. |
| Keywords: | Data Envelopment Analysis, Economies Scale, Economies of Scope, Renewable Energy Sources, Energy Efficiency |
| JEL: | C61 D22 D24 Q16 Q42 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:80369&r=ene |
| By: | Magdalena Stuss (Uniwersytet Jagiello?ski, Instytut Ekonomii, Finansów i Zarz?dzania); Agnieszka Herdan (University of Greenwich) |
| Abstract: | As business environment face many challenges employer branding became an important part of long term strategy. It is expected that companies will try manage the awareness and perceptions of current and potential employees, and related. Companies try to develop their image as an employer of choice the one who employee wants to work for and associate with. Many researchers emphasise that such approach should allow to recruit and retain the best workforce. Thus the company should use various channels and tools to demonstrate attractiveness and benefits to prospective employees'. It should show the uniqueness of the firm and distinguish from competitors and draw employees to that company. Employer branding is very often divided into external branding and internal branding. Internal employer branding is concentrates on creating a friendly work atmosphere, building opportunities for development and growth for employees inside the organization. On the other hand external employer branding focus on building company image that increase candidates' and market awareness of the brand(company) and the advantages of working for it..This paper will look at which external employer branding tools are mostly used by energy sector companies' listed at Warsaw Stock Exchange. It will also investigate similarities and differences within this sector. The content analysis reveals that in energy sector companies use similar external employer branding tools to attract talents such as social media, job fairs, companies websites. However the collaboration with universities still use old fashion approach of mainly guest lectures. More interactive approaches such as brand ambassadors, on Campus designates events or open days are still rather rare practise |
| Keywords: | Employer branding, human resource management, HR marketing |
| JEL: | J24 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:4807874&r=ene |