nep-ene New Economics Papers
on Energy Economics
Issue of 2018‒07‒23
48 papers chosen by
Roger Fouquet
London School of Economics

  1. Shadow Price of CO2 Emissions in Indian Thermal Power Sector By Rakesh Kumar Jain; Surender Kumar
  2. Emission Pathways Towards a Low-Carbon Energy System for Europe: A Model-Based Analysis of Decarbonization Scenarios By Karlo Hainsch; Thorsten Burandt; Claudia Kemfert; Konstantin Löffler; Pao-Yu Oei and Christian von Hirschhausen
  3. Is electricity affordable and reliable for all in Vietnam? By Minh Ha-Duong; Hoai Son Nguyen
  4. UK Electricity Market Reform and the Energy Transition: Emerging Lessons By Grubb, M.; Newbery, D.
  5. Renewable Energy Policies and Contradictions in Causality: A case of Next 11 Countries By Sinha, Avik; Shahbaz, Muhammad; Sengupta, Tuhin
  6. Financial Development, Economic Growth, and Electricity Demand: A Sector Analysis of an Emerging Economy By Roubaud, David; Shahbaz, Muhammad
  7. Renewable Energy Policy in the Age of Falling Technology Costs By Karsten Neuhoff; Nils May; Jörn C. Richstein
  8. Carbon emissions intensity reduction target for China¡¯s power industry: An efficiency and productivity perspective By Yujiao Xian; Ke Wang; Xunpeng Shi; Chi Zhang; Yi-Ming Wei; Zhimin Huang
  9. Do heterogeneous countries respond differently to oil price shocks? By Guerrero Santiago; Hernández del Valle Gerardo; Hernández Vega Marco A.
  10. Latent Volatility Granger Causality and Spillovers in Renewable Energy and Crude Oil ETFs By Chia-Lin Chang; Michael McAleer; Yu-Ann Wang
  11. Economic dispatch in the electricity sector in China: potential benefits and challenges ahead By Chen, H.; Chyong CK.; Kang, J-N.; Wei Y-M.
  12. Forecasting the value of battery electric vehicles compared to internal combustion engine vehicles: the influence of driving range and battery technology By JongRoul Woo; Christopher L. Magee
  13. GENeSYS-MOD v2.0 – Enhancing the Global Energy System Model: Model Improvements, Framework Changes, and European Data Set By Thorsten Burandt; Konstantin Löffler; Karlo Hainsch
  14. European Industrial Energy Intensity: The Role of Innovation 1995-2009 By Ajayi, V.; Reiner, D.
  15. Financial Development-Environmental Degradation Nexus in the United Arab Emirates: The Importance of Growth, Globalization and Structural Breaks By Shahbaz, Muhammad; Haouas, Ilham; SBIA, Rashid; Ozturk, Ilhan
  16. Employing Simple Cost-Sharing Policies to Motivate the Efficient Implementation of Distributed Energy Resources By Brown, David P.; Sappington, David E. M.
  17. The Impact of Oil Prices on East and Southeast Asian Economies: Evidence from financial markets By Willem THORBECKE
  18. Economic growth, energy consumption and government expenditure:evidence from a nonlinear ARDL analysis By Adebumiti, Qazeem; Masih, Mansur
  19. Is the oil price pass-through to domestic inflation symmetric or asymmetric? new evidence from India based on NARDL By Abu-Bakar, Muhammad; Masih, Mansur
  20. Oil rents and institutional quality: empirical evidence from Algeria By Chekouri, Sidi Mohamed; Benbouziane, Mohamed; Chibi, Abderrahim
  21. Chicken now, not eggs later: short-termism, underdevelopment and regime stabilisation in the DRC’s oil governance By Edmond, Patrick; Titeca, Kristof
  22. Explicit Solutions for Optimal Resource Extraction Problems under Regime Switching L\'evy Models By Moustapha Pemy
  23. The Iberian electricity market:Price dynamics and risk premium in an illiquid market By Márcio Ferreira; Hélder Sebastião
  25. Green, yellow or red lemons? Framed field experiment on houses energy labels perception. By Edouard Civel; Nathaly Cruz-Garcia
  26. Fake News and Indifference to Scientific Fact: President Trump's Confused Tweets on Global Warming, Climate Change and Weather By David E. Allen; Michael McAleer; David McHardy Reid
  27. How do consumers interpret the macroeconomic effects of oil price fluctuations? Evidence from U.S. survey data By Martin Geiger; Johann Scharler
  28. Designing Coalition-Based Fair and Stable Pricing Mechanisms Under Private Information on Consumers' Reservation Prices By Hélène Le Cadre; Bernardo Pagnoncelli; Tito Homem-De-Mello; Olivier Beaude
  29. Did the Paris Agreement Plant the Seeds of a Climate Consistent International Financial Regime? By Dipak Dasgupta; Etienne Espagne; Jean Charles Hourcade; Irving Mintzer; Seyni Nafo; Baptiste Perrissin Fabert; Nick Robins; Alfredo Sirkis
  30. Energy consumption and financial development in South Africa: An empirical investigation By Odhiambo, Nicholas M.
  31. Design, Sustainability Analysis and Multiobjective Optimisation of Ethanol Production via Syngas Fermentation By Michailos, Stavros; Parker, David; Webb, Colin
  32. The European Single Market in Electricity: An Economic Assessment By Pollitt, M.
  33. Green firm, brown production By Rupayan Pal; A.M. Tanvir Hussain; Prasenjit Banerjee
  34. Schwindende Akzeptanz für die Energiewende? Ergebnisse einer wiederholten Bürgerbefragung By Frondel, Manuel; Sommer, Stephan
  35. A Data-Driven Approach for Modeling Stochasticity in Oil Market By Sina Aghaei
  36. Institutions and geography: A "two sides of the same coin" story of primary energy use in Sub-Saharan Africa. By Laté Ayao Lawson; Phu Nguyen-Van
  37. Smart specialisation and social innovation: from policy relations to opportunities and challenges By Manfred Spiesberger; Javier Gomez Prieto; Isabelle Seigneur
  38. Small and Micro-Scale Hydropower in Japan By Yveline Lecler
  39. Extended Input Output Model for Nuclear Power Plant Impact Assessment By Tomislav Gelo
  40. Energy, knowledge, and demo-economic development in the long run: a unified growth model By Victor Court; Emmanuel Bovari
  41. Transacciones internacionales de energía eléctrica: oportunidades de crecimiento con vistas a la integración eléctrica colombo – centroamericana By Daniela Machuca Moreno
  42. Do Global Financial Markets Capitalise Sustainability? Evidence of a Quick Reversal By Fabio Moliterni
  43. Diagnosis of the Growth Model of the Russian Air Transportation Market: Bottlenecks and Directions of Development By Kaukin, Andrey
  44. Analyzing the trends of natural resources rents of Pakistan By Alvi, Mohsin Hassan; Ansari, Sami ul Haque
  45. Impact of Financial Development, Economic Growth and Energy Consumption On Environmental Degradation: Evidence from Pakistan By Raza, Syed Ali; Shah, Nida
  46. Consumers' evaluation of public charging infrastructure for electric vehicles By Globisch, Joachim; Plötz, Patrick; Dütschke, Elisabeth; Wietschel, Martin
  47. Linking Cap-and-Trade Systems By Katharina Erdmann; Aleksandar Zaklan
  48. Powering India at Household Level: State Effort, Issues and Concerns By Jain, Varinder

  1. By: Rakesh Kumar Jain (Indian Railways & Department of Business Economics South Campus, University of Delhi); Surender Kumar (Department of Economics, Delhi School of Economics)
    Abstract: This paper estimates production efficiency and shadow prices of CO2 emissions for thermal power plants in India. It employs a unique sample of 56 power plants for 2000-2013 acquired primarily by invoking the Right to Information (RTI) Act, 2005. It estimates parametric quadratic directional output distance function using linear programming approach. We find that CO2 intensity of electricity generation could be reduced about 16 and 23 percent if the power plants were made to operate efficiently. The estimated average shadow prices of US$ 14.54 and 18.68 for a ton of CO2 emission, depending upon a plant’s strategies for enhancing electricity and reducing CO2 emissions, reflects that the prevailing Clean Energy Cess of US$ 6.15 a ton of coal or US$ 3.81 a ton of CO2 emissions is not enough to induce the required emission mitigation. Significant variation in the estimates of shadow prices calls for the application of economic instruments for cost effective reduction of the emissions.
    Keywords: CO2 emissions, shadow price, directional distance function, thermal power plants, India
    JEL: D24 Q25 Q52
    Date: 2018–04
  2. By: Karlo Hainsch; Thorsten Burandt; Claudia Kemfert; Konstantin Löffler; Pao-Yu Oei and Christian von Hirschhausen
    Abstract: The aim of this paper is to showcase different decarbonization pathways for Germany and Europe with varying Carbon dioxide (CO2) constraints until 2050. The Global Energy System Model (GENeSYS-MOD) framework, a linear mathematical optimization model, is used to compute low-carbon scenarios for Europe as a whole, as well as for 17 European countries or regions. The sectors power, low- and high-temperature heating, and passenger and freight transportation are included, with the model endogenously constructing capacities in each period. Emission constraints differ between different scenarios and are either optimized endogenously by the model, or distributed on a per-capita basis, GDP-dependent, or based on current emissions. The results show a rapid phase-in of renewable energies, if a carbon budget in line with established climate targets is chosen. In the 2° pathway, the power and low-temperature heat sectors are mostly decarbonized by 2035, with the other sectors following. Wind power is the most important energy source in Europe by 2050, followed by solar energy and hydro power. The heating sector is dominated by biogas and heat pumps, while electric vehicles emerge in the transportation sector in the later periods. Differences in renewable potentials lead to different developments in the regions, e.g., converting Germany from a net exporter of electricity into an importing country by 2050. In the 1.5° pathway, not all calculations are feasible, showcasing that especially countries like Poland or the Balkan region that heavily rely on fossil fuels will face difficulties transitioning away from their current generation capacities. It can, however, be shown that the achievement of the 2° target can be met with low additonal costs compared to the business as usual case, while reducing total emissions by more than 30%.
    Keywords: Decarbonization, energy system modeling, GENeSYS-MOD, renewables, energy policy, energy transition
    JEL: C61 Q4 L9
    Date: 2018
  3. By: Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Hoai Son Nguyen (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)
    Abstract: Access to clean and affordable energy for all is the seventh sustainable development goal. This manuscript examines the state of access to electricity for all in Vietnam, based on national households' surveys conducted in the time period 2008-2014. We find that in Vietnam, the problem of providing access to clean energy for all is largely solved for now: the fraction of households without access to electricity is below two percent, the median level of electricity usage in 2014 was 100 kWh per month per household, the fraction of households declaring unsatisfied electricity needs is below three percent. We find that electricity is becoming a heavier burden in Vietnamese households' finances. In 2010, the electricity bill exceeded 6% of income for 2.4% of households, but in 2014 that number reached 5.5% of households. In practical terms, we discuss the challenge of a socially just increase of electricity tariff, necessary to finance a clean development of energy system. Our theoretical contribution to debates on energy poverty is to account for the human dimension by using a self-reported satisfaction indicator. Our study shows that subjective energy poverty indicators –designed from surveys asking people if they had enough electricity to meet their households needs– are as relevant as objective indicators –from engineering or economic data. While objectivity is laudable, development is not only about technology and money: measuring human satisfaction matters.
    Keywords: Electricity,Vietnam,Sustainable Development Goals,Indicators
    Date: 2018–01–25
  4. By: Grubb, M.; Newbery, D.
    Abstract: The 2013 Electricity Market Reform (EMR) was a response to problems of delivering reliability with a growing share of renewables in its energy only market. Four EMR instruments combined to revolutionise the sector; stimulating unprecedented technological and structural change. Competitive auctions for both firm capacity and renewable energy have seen prices far lower than predicted and the entry of unexpected new technologies. A carbon price floor displaced coal, whose share fell from 46% in 1995 to 7% in 2017, halving CO2. Renewables grew from under 4% in 2008 to 22% by 2017, projected at 30+% by 2020 despite a political ban on onshore wind. Neither the technological nor regulatory transitions are complete, and the results to date highlight other challenges, notably to transmission pricing and locational signals. EMR is a step forwards, not backwards; but it is not the end of the story.
    Keywords: Electricity market design, capacity auctions, renewables support
    JEL: L94 D44
    Date: 2018–06–19
  5. By: Sinha, Avik; Shahbaz, Muhammad; Sengupta, Tuhin
    Abstract: Numerous studies on the causal relationship between economic growth, energy consumption and carbon dioxide (CO2) emissions have shown divergence in policy recommendations, which arises mainly due to the choice of methodology and the period of study. This inconclusiveness in policy prescriptions might turn out to be critical, when the renewable energy policies of the developing nations are considered. Our study analyses the causal relationship between economic growth, carbon emissions, fossil fuel and renewable energy consumption in Next 11 countries during the period of 1990-2016. Along with conducting parametric and non-parametric causality tests together, introducing the Geweke (1982) causality test in the literature of energy economics, we attempt to establish a wholesome aspect of policy design, by comparing and complementing results of different causality analysis, and how the causality directions should comply with the context setting. Our empirical evidence confirms that robust renewable energy policy can be designed by complementing the various causality test results, rather than focusing on one particular causality test.
    Keywords: Renewable Energy Policy; CO2 Emissions; Geweke Causality; Next 11 Countries
    JEL: B0
    Date: 2018–06–03
  6. By: Roubaud, David; Shahbaz, Muhammad
    Abstract: We employ an augmented production function to examine the association between electricity consumption and economic growth at the aggregate and sectoral levels for the period 1972-2014 for Pakistan. We posit that financial development is an important driver of electricity consumption and economic growth. The unit root test, combined cointegration framework, and VECM Granger causality approach are applied. There is a long-term association between the variables at the aggregate and sectoral levels. Electricity consumption and financial development stimulate economic growth. The causality analysis validates the presence of the feedback effect between economic growth and electricity consumption. Bidirectional causality exists between financial development and electricity consumption in the agriculture and services sectors. Financial development drives electricity consumption in the industrial sector. Policies have to be implemented to maintain sufficient electricity supply for economic growth. The financial sector should incentivize investment in renewable energy to reduce Pakistan’s heavy reliance on oil imports.
    Keywords: Financial development, Electricity consumption, Economic growth, Energy policy, Bidirectional causality, Feedback effect, Electricity demand–supply gap, Non-renewable energy, Carbon Emissions, Pakistan
    JEL: E0
    Date: 2018–06–01
  7. By: Karsten Neuhoff; Nils May; Jörn C. Richstein
    Abstract: Cost of renewable energies have dropped, approaching wholesale power price levels. As a result, the role of renewable energy policy design is shifting – from covering incremental costs towards facilitating risk-hedging. An analytical model of the financing structure of renewable investment projects is developed to assess this effect und used to compare different policy design choices: contracts for differences, sliding premia, fixed premia and a setting without dedicated remuneration mechanism. The expected benefit for electricity consumers from reduced risk and financing costs is approximated at the example of a 2030 scenario for Germany. Policies like sliding premia, previously evaluated as providing low-risk investment environments, provide for less risks hedging, when technology costs approach wholesale power prices. Contracts for differences provide in all scenarios the most effective hedge for investors against power prices uncertainty, enabling low-cost financing and reducing costs for consumers, while also hedging electricity consumers against high power prices.
    Keywords: Investments under uncertainty, financing costs, renewable energy policy, contracts for difference
    JEL: Q42 Q55 O38
    Date: 2018
  8. By: Yujiao Xian; Ke Wang; Xunpeng Shi; Chi Zhang; Yi-Ming Wei; Zhimin Huang
    Abstract: This paper proposes a scenario analysis to address whether the national and provincial CO2 emissions intensity reduction target during 2016-2020 would be achievable for China¡¯s power industry with the identification of change on carbon productivity. This productivity indicator is further decomposed to investigate contributions of different sources to productivity growth when there exists technological heterogeneity. Evaluation results show that even if all electricity-generating units in each region were able to adopt the best practice, the nationwide 18% intensity reduction target is not feasible through improving technical efficiency or upgrading technology on electricity generation and carbon abatement in a short or medium term. The existence of regional technological heterogeneity in power generation and associated CO2 emissions reduction processes implies the necessity of more differentiated regulations and policies for emission reduction across China¡¯s regions and inter-regional technology transfer. The emerging national emission trading scheme could easy some challenges in formulating emission policy for heterogeneous regions.
    Keywords: Data Envelopment Analysis (DEA); Endogenous directional distance function (DDF); Meta-technology frontier; Heterogeneity; Technological gap
    JEL: Q54 Q40
    Date: 2018–07–01
  9. By: Guerrero Santiago; Hernández del Valle Gerardo; Hernández Vega Marco A.
    Abstract: The article studies the macroeconomic impact of oil price changes in 17 highly heterogeneous countries classified in six groups: advanced, emerging, oil producer, non-oil producers, with energy price controls and without energy price controls. The results show that despite analyzed countries differ in several dimensions, most differences regarding oil price shocks impacts can be captured comparing two groups: advanced vs. emerging. Moreover, most of the differences in the way countries react to oil price shocks come from the source of the shock rather than by the group which the countries belong to. Remarkably, there are no significant differences in the response of industrial production between oil and non-oil producer countries. We posit, as potential explanations of the later finding the decline in the energy intensity of the global economy and the degree of trade openness.
    Keywords: Oil Price Shocks;Macroeconomic Impacts;Oil Market
    JEL: E31 Q31 Q43
    Date: 2018–06
  10. 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 Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.); Yu-Ann Wang (Department of Applied Economics National Chung Hsing University, Taiwan.)
    Abstract: The purpose of the paper is to examine latent volatility Granger causality for four renewable energy Exchange Traded Funds (ETFs) and crude oil ETF (USO), namely solar (TAN), wind (FAN), water (PIO), and nuclear (NLR). Data on the renewable energy and crude oil ETFs are from 18 June 2008 to 20 March 2017. From the underlying stochastic process of a vector random coefficient autoregressive (VRCAR) process for the shocks of returns, we derive Latent Volatility Granger causality from the Diagonal BEKK multivariate conditional volatility model. We follow Chang et al. (2015)’s definition of the co-volatility spillovers of shocks, which calculate the delayed effect of a returns shock in one asset on the subsequent volatility or co-volatility in another asset, and extend the effects of the covolatility spillovers of shocks to the effects of the co-volatility spillovers of squared shocks. The empirical results show there are significant positive latent volatility Granger causality relationships between solar (TAN), wind (FAN), nuclear (NLR), and crude oil (USO) ETFs, specifically significant volatility spillovers of shocks from solar ETF on the subsequent wind ETF co-volatility with solar ETF, and wind ETF on the subsequent solar ETF covolatility with wind ETF. Interestingly, there are significant volatility spillovers of squared shocks for the renewable energy ETFs, but not with crude oil ETFs.
    Keywords: Renewable Energy; Latent Volatility; Granger Causality; Co-volatility Spillovers; Solar; Wind; Water; Nuclear Power.
    JEL: C32 C58 G12 G15 Q42
    Date: 2018–05
  11. By: Chen, H.; Chyong CK.; Kang, J-N.; Wei Y-M.
    Abstract: Unlike the economic dispatch used in most power systems, electricity system dispatch currently used in China is an equal share approach. This form of dispatch has been criticized for its negative influence on system operations, worsening energy security, environmental sustainability and affordability problems. To contribute to on-going electricity market reform discussions, our study employs an optimization model to quantify the economic dispatch savings in the coal-fired power sector. We offer three major findings. First, the heat rates of coal generators in China in 2014 ranged from 273.91 gce/kWh to 348.38 gce/kWh units and as a result of these large differences among generators in different regions, implementing economic (merit order) dispatch will bring economic and environmental benefits. Second, we identify three major political and economic challenges, which hinder the transition from the current dispatch model, namely (i) current running hours are insufficient for cost recovery, (ii) limited cross-border trading due to electricity over-supply and local protectionism, and (iii) political economy problems from generators of different ownership types. Finally, 5.67% of coal used in power generation could be saved if economic dispatch was employed at the provincial level, the value of which equals 0.05% of Chinese GDP in 2014.
    Keywords: Economic dispatch; electricity; power markets; energy saving; China; coal; optimization model
    JEL: P28 Q48 L94 L51 L52
    Date: 2018–06–20
  12. By: JongRoul Woo; Christopher L. Magee
    Abstract: Battery electric vehicles (BEVs) are now clearly a promising candidate in addressing the environmental problems associated with conventional internal combustion engine vehicles (ICEVs). However, BEVs, unlike ICEVs, are still not widely accepted in the automobile market but continuing technological change could overcome this barrier. The aim of this study is to assess and forecast whether and when design changes and technological improvements related to major challenges in driving range and battery cost will make the user value of BEVs greater than the user value of ICEVs. Specifically, we estimate the relative user value of BEVs and ICEVs resulting after design modifications to achieve different driving ranges by considering the engineering trade-offs based on a vehicle simulation. Then, we analyze when the relative user value of BEVs is expected to exceed ICEVs as the energy density and cost of batteries improve because of ongoing technological change. Our analysis demonstrates that the relative value of BEVs is lower than that of ICEVs because BEVs have high battery cost and high cost of time spent recharging despite high torque, high fuel efficiency, and low fuel cost. Moreover, we found the relative value differences between BEVs and ICEVs are found to be less in high performance large cars than in low performance compact cars because BEVs can achieve high acceleration performance more easily than ICEVs. In addition, this study predicts that in approximately 2050, high performance large BEVs could have higher relative value than high performance large ICEVs because of technological improvements in batteries; however low performance compact BEVs are still very likely to have significantly lower user value than comparable ICEVs until well beyond 2050.
    Date: 2018–05
  13. By: Thorsten Burandt; Konstantin Löffler; Karlo Hainsch
    Abstract: This Data Documentation presents the second version of the Global Energy System Model (GENeSYSMOD), an open-source energy system modeling framework. The model endogenously determines costoptimal investment paths into conventional and renewable energy generation, different storage technologies, and some infrastructure investments in five-year steps until 2050. GENeSYS-MOD hereby focuses on the coupling of the three traditionally segregated sectors electricity, heat, and transportation - including all three sectors and their interconnections in the model. By allowing for different emission targets (such as emission budgets, yearly emission targets, or emission reduction goals), possible cost-minimizing pathways towards a largely (or even fully) decarbonized energy system can be analyzed. The second version of the model features more time slices, a more detailed representation of power trade and its infrastructure, performance improvements, and a fully revised technology data set. Additionally, to model improvements and changes, a high-quality data set for the European region to use with GENeSYS-MOD v2.0 is provided and described. An application of the European version of GENeSYS-MOD v2.0 can be found as an accompanying DIW Discussion Paper No. 1745 (Hainsch et al. 2018).
    Date: 2018
  14. By: Ajayi, V.; Reiner, D.
    Abstract: We investigate the direct role of technological innovation and other influencing factors on industry-level energy intensity based on a sample of 12 industries across 17 EU countries over 1995–2009. We develop an innovative industry-level patent dataset and find compelling evidence that patent stock negatively influences industrial energy intensity. Using a fixed effects estimator, we find a much stronger effect on energy-intensive industries with an estimated coefficient of -0.138 almost double that of less energy-intensive industries (estimated at -0.085). While our results show energy price remains the major determinant of energy intensity, the chemicals industry appears to be more susceptible to energy prices relative to other energy-intensive industries that are covered by the EU Emissions Trading Scheme (ETS). Our study reveals that asymmetric response of energy intensity to energy prices in which price rises between 2004 and 2008 accounts for more change in efficiency than when prices fall. We also explore regional differences, notably that carbon tax policy in Northern European countries, which began in the early 1990s, is responsible for a significant fraction of the decline in energy intensity in Northern Europe.
    Keywords: Industrial energy intensity, innovation, energy price, carbon tax
    JEL: O13 C33 Q41 Q55
    Date: 2018–06–19
  15. By: Shahbaz, Muhammad; Haouas, Ilham; SBIA, Rashid; Ozturk, Ilhan
    Abstract: The financial development-environmental degradation nexus is revisited by incorporating economic growth, electricity consumption and economic globalization into the CO2 emissions function. The study period spans 1975QI-2014QIV in the United Arab Emirates. We have applied structural break and cointegration tests to examine unit root and cointegration between the variables. The Toda-Yamamoto causality test is employed to investigate the causal relationship between the variables, and the robustness of causality linkages is tested by applying the innovative accounting approach. Our empirical analysis shows cointegration between the series. Financial development increases CO2 emissions. Economic growth is positively linked with environmental degradation. Electricity consumption improves environmental quality. Economic globalization affects CO2 emissions negatively. The relationship between financial development and CO2 emissions is U-shaped and inverted N-shaped. Furthermore, financial development causes environmental degradation and environmental degradation causes financial development in the Granger sense.
    Keywords: Financial development, Environment, Growth, Electricity, Globalization
    JEL: A10
    Date: 2018–06–04
  16. By: Brown, David P. (University of Alberta, Department of Economics); Sappington, David E. M. (University of Florida, Department of Economics)
    Abstract: We consider the optimal design of simple cost-sharing policies to motivate electricity distribution utilities to manage the costs of distributed energy resource (DER) projects. The optimal share of realized cost savings (s) that is awarded to the utility takes a particularly simple form in certain settings. More generally, s can vary with the prevailing environment in subtle and sometimes counter-intuitive ways. For instance, s may increase as cost savings become less onerous for the utility to secure and as the utility becomes more averse to risk. Gains from affording the utility a choice among cost-sharing policies typically are minimal.
    Keywords: distributed energy resources; procurement; regulation
    JEL: L51 L94
    Date: 2018–06–30
  17. By: Willem THORBECKE
    Abstract: Oil prices have been volatile. To investigate how these price swings affect Asian economies, this paper examines how oil prices affect industry and aggregate stock returns. Economic theory implies that there is a strong link between economic activity and stock price. Evidence presented here indicates that sectors such as electricity, airlines, and industrial transportation are helped by oil price falls, and that sectors such as oil and gas production and exploration are harmed. The findings also reveal that many industries within each country are impacted by oil prices. The paper concludes by offering several suggestions to help Asian economies weather the effects of oil price changes.
    Date: 2018–07
  18. By: Adebumiti, Qazeem; Masih, Mansur
    Abstract: This study investigates the nonlinear asymmetric relationship between energy consumption and economic growth by incorporating government expenditure and oil prices into a production function using Nigerian economy from 1980-2014. The nonlinear autoregressive distributed lag bounds testing approach is applied to examine the asymmetric cointegration between the variables. An asymmetric causality test is also employed to examine the causal association between the considered variables. The results indicate cointegration between the variables in the presence of asymmetries. The asymmetric causality results show that negative shocks to energy consumption have impacts on economic growth. Likewise, negative shocks to government expenditure have impacts on economic growth. The implications of these results for growth policies in Nigeria are also examined.
    Keywords: Economic growth, energy consumption, Government expenditure, non-linear ARDL
    JEL: C22 C58 H5 Q43
    Date: 2018–06–15
  19. By: Abu-Bakar, Muhammad; Masih, Mansur
    Abstract: With 80% oil dependence, which is expected to further increase in coming years due to rapid expansion, and the reforms initiated to deregulate domestic oil market, the association between global oil prices and inflation in India has increased. Using the autoregressive distribution lag (ARDL) and the nonlinear and asymmetric autoregressive distribution lag (NARDL) framework, we investigate the association between global oil prices and inflation. The ARDL results indicate no association between the two, whereas NARDL findings not only point to long term association but also indicates asymmetric pass-through. Precisely, domestic prices increase with the increase in global oil prices but the decrease in global oil prices has no significant association with the domestic prices. These results are robust to the inclusion of additional variables, different proxy of oil prices (WTI crude) and different time period (January 2003 to January 2018). The contrasting results obtained from the ARDL and the NARDL modelling highlight the importance of using non-linear framework, especially in high oil dependence country with non-competitive market structure. The results have implications for welfare assessment and the effectiveness of monetary policy.
    Keywords: Oil Price; Inflation; asymmetry; India; non-linear ARDL
    JEL: C22 C58 Q43
    Date: 2018–06–12
  20. By: Chekouri, Sidi Mohamed; Benbouziane, Mohamed; Chibi, Abderrahim
    Abstract: This paper examines the interaction between natural resource abundance and institutional quality in Algeria, using two measures of institutional quality (corruption and democratic accountability), and a measures for resource endowment (oil rents as a percentage of GDP). Our results indicate that an increase in oil rents significantly increase corruption in Algeria, while the interaction effect between oil rents and democratic accountability is positive and statistically significant, which means that enhancing democratic institutions can reduce corruption. It is also revealed that the manufactures exports significantly decline in the aftermath of oil rents shock, a pattern consistent with the Dutch Disease phenomenon. On the one hand, these findings confirms that Algeria’s institutional framework demonstrates a high degree of perceived weakness, and on the other hand, enhancing these institutional environment would reduce corruption, and increase the impact of resource abundance on economic development.
    Keywords: Resource Curse, Oil rents, Corruption, Institutional Quality, Algeria.
    JEL: O13 O17 Q38 Q43
    Date: 2017–01–05
  21. By: Edmond, Patrick; Titeca, Kristof
    Abstract: The DRC has major possibilities for oil development, but very little actual development. This paper aims to show why this is the case, demonstrating that the main function of the oil sector is regime stability, which manifests itself in various ways. First, the sector is a major source of patronage and rent-extraction. These rents are not created through the active production and development of the sector, but primarily through not developing the sector, which is much more interesting for short-term rent extraction for the concerned actors. Second, we show how there are political and social logics behind corruption, which are also related with regime-stability: rent extraction is allowed as a form of political reward, but this political logic equally means that it should not be overdone. Overdoing corruption brings unnecessary attention, which is detrimental for regime stability. Paradoxically, oil sector development is contrary to regime stability: internal geopolitics, regional relationships, and central control over major wealth are threatened by sector development. The importance of describing these dynamics goes beyond the oil sector: it allows for a better understanding of how political control and corruption function within the DRC, and how development becomes their victim.
    Keywords: DRC; DRCongo; oil
    Date: 2018–07
  22. By: Moustapha Pemy
    Abstract: This paper studies the problem of optimally extracting nonrenewable natural resources. Taking into account the fact that the market values of the main natural resources i.e. oil, natural gas, copper,..., etc, fluctuate randomly following global and seasonal macroeconomic parameters, the prices of natural resources are modeled using Markov switching L\'evy processes. We formulate this optimal extraction problem as an infinite-time horizon optimal control problem. We derive closed-form solutions for the value function as well as the optimal extraction policy. Numerical examples are presented to illustrate these results.
    Date: 2018–06
  23. By: Márcio Ferreira (CFisUC, Department of Physics of the University of Coimbra); Hélder Sebastião (CeBER and Faculty of Economics of the University of Coimbra)
    Abstract: This paper studies the relationship between the electricity spot and futures prices in the Iberian electricity market, with a special focus on the ex-post risk premium of monthly futures contracts. The study covers the period from 1 July 2006 to 31 March 2017, during which 128 monthly futures contracts were traded. We show that the risk premium is dynamic and presents on average a negative value. Within contracts, the risk premium presents a non-linear dependence on the remaining trading days until maturity. There is no statistical evidence for rejecting the unbiased forward hypothesis of the futures prices. However, the sequence of futures prices near maturity has some predictive power on the risk premium.
    Keywords: electricity markets, MIBEL, futures contracts, risk premium, price dynamics
    JEL: G13 G14 Q40
  24. By: Nemanja Backovi? (Faculty of Organizational Sciences, University of Belgrade); Bojan Ili? (Faculty of Organizational Sciences, University of Belgrade); Vesna Mili?evi? (Faculty of Organizational Sciences, University of Belgrade)
    Abstract: This paper analyses the modern aspect and framework of business decision making related to investments and cost reduction in wind energy companies. It describes different strategies of measuring the efficiency level of installed wind capacities. The research is presented with consideration to the methodology approach specific for wind energy. Special attention is given to the cost-effective business operations of contemporary systems of energy accumulation and the process of optimal decision making in the course of energy distribution. The focus is on the framework for sustainable business in compliance with complex external environment. The impact of unpredictable market and climate circumstances show the importance of the strategy mix and its role in creating value for the end-users of electrical energy. The dynamics of exploitation of the preferential conditions for wind energy companies is also important in the context of return on investment. The perspective of investing in wind energy projects is also given, along with the specificities of their implementation according to the principle of creating positive energy balance. The paper also points out the significance of government incentives and their variations. It also provides useful guidelines for successful business decision making for managers in wind energy.
    Keywords: business decisions, alternative energy sources, wind energy, investment, cost reduction, efficiency, market, tariff system.
    JEL: Q20 Q21 Q29
    Date: 2017–07
  25. By: Edouard Civel; Nathaly Cruz-Garcia
    Abstract: Labels are increasingly popular among policy-makers, companies and NGOs to improve consumers awareness, especially about environmental footprints. Yet, the efficiency of these informational tools is mostly looked as their ability to shift behaviors, whereas their first goal is to enable people to discriminate labelled goods. This paper studies how the complex information displayed by houses' Energy Performance Certificates is processed by real economic agents. Through a randomized framed field experiment on 3,000 French subjects, we test the impact of these labels on people's perception of a home energy performance. Results evidence that 24% of subjects did not take heed of the energy label. Unexpectedly, we find out that gender is the most differentiating characteristic in this changing sensitivity to energy performance certificates. We interpret this effect by the Selectivity Hypothesis: energy labels design engages more male subjects.Among sensitive subjects, energy labels' efficiency to transmit information is mixed, as our results indicate a Bayesian reading of houses energy labels. Subjects identify separately each label's grades, and their perception is not systematically biased by individual characteristics, but idiosyncratic features blur their judgment. Moreover, this perception exhibits strong asymmetries. While worsening grades induce decreasing judgments, upgrading label's class do not strongly enhance people's evaluation of energy quality: on the contrary, top level quality label seems to undergo skepticism and intensifies idiosyncratic noise.
    Keywords: Information treatment ; Experimental economics ; Cognitive psychology ; Green Value ; Energy efficiency.
    JEL: D03 D12 D83 L15
    Date: 2018
  26. By: David E. Allen (School of Mathematics and Statistics, University of Sydney, Australia, Department of Finance, Asia University, Taiwan, and School of Business and Law, Edith Cowan University, Western Australia.); Michael McAleer (Department of Quantitative Finance National Tsing Hua University, Taiwan and Econometric Institute Erasmus School of Economics Erasmus University Rotterdam, The Netherlands and Department of Quantitative Economics Complutense University of Madrid, Spain And Institute of Advanced Sciences Yokohama National University, Japan.); David McHardy Reid (Albers School of Business and Economics, Seattle University, Washington, USA.)
    Abstract: A set of 115 tweets on climate change by President Trump, from 2011 to 2015, are analysed by means of the data mining technique, sentiment analysis. The intention is to explore the contents and sentiments of the messages contained the degree to which they differ, and their implications about his understanding of climate change. The results suggest a predominantly negative emotion in relation to tweets on climate change, but they appear to lack a clear logical framework, and confuse short term variations in localised weather with long term global average climate change.
    Keywords: Sentiment Analysis; Polarity; Climate Change; Scientific Verification; Weather.
    JEL: A1 C44 C88 Z0
    Date: 2018
  27. By: Martin Geiger; Johann Scharler
    Abstract: We use survey data to study how consumers assess the macroeconomic effects of structural oil market shocks on the U.S. economy using vector autoregressive models. To structurally decompose oil price changes, we impose sign restrictions on impulse responses. We find that the survey respondents' expectations are qualitatively in line with the actual developments in most cases. Nevertheless, survey respondents underestimate the adverse effects of oil market shocks in some cases. We also find that respondents expect the central bank to stabilize inflation as well as output and that expectations are consistent with a standard Taylor rule.
    Keywords: Macroeconomic Expectations, Michigan Survey, Structural Vector Autoregression, Zero and Sign Restrictions
    JEL: E00 E32 D84
    Date: 2018–07
  28. By: Hélène Le Cadre (EnergyVille); Bernardo Pagnoncelli (Santiago - University Adolfo Ibanez); Tito Homem-De-Mello (Santiago - University Adolfo Ibanez); Olivier Beaude
    Abstract: We model the relation between an aggregator and consumers joining a coalition to reduce the risk resulting from the unpredictability of their base load demand, as a Stackelberg game formulated as a mathematical bilevel program with private information on the consumers' reservation prices. At the upper-level of the Stackelberg game, the aggregator optimizes his daily price profile so as to reach a net targeted profit which is the maximum value guaranteeing that no consumer will leave the coalition - to contract with a conventional retailer considered here as a fixed alternative - while meeting fairness criterion imposed by the cost-sharing mechanism. At the lower-level, the consumers are asked to provide in day ahead an estimate of their base load hourly demand profile and to schedule their shiftable loads depending on the price signal sent by the aggregator. We provide algorithms that determine the unique price profile and consumer shiftable load schedules as functions of the reservation price estimates. The Stackelberg game between the aggregator and the consumers being repeated for a period of time, the aggregator has the possibility to update his estimates of the reservation prices relying on a feedback function which depends on the percentage of activated loads. A randomized algorithm for consumers' reservation price learning based on regret minimization is provided. For four cost-sharing mechanisms such as uniform allocation, stand-alone cost, Shapley value, separable and non-separable costs, we determine the closed form of the aggregator's optimal net targeted profit guaranteeing the stability of the coalition. We also determine conditions guaranteeing the core non-emptiness and prove that for a profit-maximizing aggregator, the stand-alone cost is always preferable to the Shapley value, which coincides with the uniform allocation. Furthermore, the optimal size of the coalition - in terms of the aggregator's profit - can be determined analytically when the Shapley value is implemented as cost-sharing mechanism. The results are illustrated on a case study where we show that there exists an optimal net targeted profit below which the consumers energy bill is lower when joining the aggregator than with the conventional retailer. Coalition dynamics is also analyzed numerically depending on the consumer inertia in their energy supplier choice process, for each cost-sharing mechanism.
    Keywords: Forecast Algorithm,Load Scheduling,Coalition Formation,Game Theory,OR in Energy
    Date: 2018
  29. By: Dipak Dasgupta; Etienne Espagne (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Jean Charles Hourcade (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - AgroParisTech - EHESS - École des hautes études en sciences sociales - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Irving Mintzer (JHU - Johns Hopkins University); Seyni Nafo; Baptiste Perrissin Fabert (CGDD - Commissariat Général au Développement Durable - Ministère de l'Ecologie, du Développement Durable, des Transports et du Logement); Nick Robins; Alfredo Sirkis
    Keywords: Paris Agreement,COP 21,Climate finance
    Date: 2018–01–25
  30. By: Odhiambo, Nicholas M.
    Abstract: This paper examines the dynamic relationship between energy consumption and financial development in South Africa during the period 1980-2013. In order to address the omission of variable bias, the study has included economic growth as an intermittent variable between financial development and energy consumption ??? thereby leading to a trivariate causality model. Unlike some previous studies, this study uses three proxies for financial development: i) domestic credit to the private sector as a percentage of GDP as a proxy for financial institutions??? depth; ii) bank credit to bank deposits as a proxy for financial institutions??? stability; and iii) bank lending-deposit spread as a proxy for financial institutions??? efficiency. Using the ARDL-bounds testing approach to cointegration and ECM-based Granger-causality test, the study finds that there is a distinct long-run unidirectional causal flow from financial development to energy consumption in South Africa. This applies ??? irrespective of which proxy has been used to measure the level of financial development. This finding is not surprising given the level of financial development in South Africa. The study, therefore, reiterates the need for South Africa to explore affordable energy-mix in order to cope with the increased finance-led energy demand.
    Keywords: Financial Development; Energy Consumption; South Africa; ARDL Bounds Testing Approach
    Date: 2018–01
  31. By: Michailos, Stavros; Parker, David; Webb, Colin
    Abstract: Ethanol production from non-edible feedstock has received significant attention over the past two decades. The utilisation of agricultural residues within the biorefinery concept can positively contribute to the renewable production of fuels. To this end, this study proposes the utilisation of bagasse in a hybrid conversion route for ethanol production. The main steps of the process are the gasification of the raw material followed by syngas fermentation to ethanol. Aspen plus was utilised to rigorously design the biorefinery coupled with Matlab to perform process optimisation. Based on the simulations, ethanol can be produced at a rate of 283 L per dry tonne of bagasse, achieving energy efficiency of 43% and according to the environmental analysis, is associated with low CO2 emissions. The conduction of a typical discounted cash flow analysis resulted in a minimum ethanol selling price of 0.69 $ L−1. The study concludes with multiobjective optimisation setting as objective functions the conflictive concepts of total investment costs and exergy efficiency. The total cost rate of the system is minimised whereas the exergy efficiency is maximised by using a genetic algorithm. This way, various process configurations and trade-offs between the investigated criteria were analysed for the proposed biorefinery system.
    Keywords: Second generation ethanol · Syngas fermentation · Technoeconomic analysis · Sustainability analysis · Process simulation · Multiobjective optimisation
    JEL: Q1 Q16
    Date: 2017–12–27
  32. By: Pollitt, M.
    Abstract: The European single market in electricity has been promoted vigorously by the European Commission since 1996. We discuss how national electricity markets and cross border electricity markets have been reshaped by the process. We examine the Commission’s own work on evaluating the benefits of the single market. We look at the wider evidence of impact on prices, security of supply, the environment and on innovation. We conclude that the institutional changes are extensive and there has been significant market harmonisation and integration. However, the measured benefits are difficult to identify, but likely to be small. This is partly because over the same period there has been a large rise in subsidised renewable generation driven by the decarbonisation agenda.
    Keywords: electricity single market, decarbonisation
    JEL: L94
    Date: 2018–05–24
  33. By: Rupayan Pal (Indira Gandhi Institute of Development Research); A.M. Tanvir Hussain (University of FreiburgGrowth); Prasenjit Banerjee (University of Manchester)
    Abstract: In a theoretical model of an environmentally conscious ("green") monopolist, we show that increasing greenness does not always mean lower output and environmental damages. We assume that a green firm can internalize environmental externalities in its decision making process and/or invest in cleaner production technology and management practices. We also find that our results hold regardless of whether consumers value the firm's pro-environmental actions or not.
    Keywords: monopoly, environmental concern, green technology, internalizing externalities, environmental damage
    JEL: D42 Q50
    Date: 2018–03
  34. By: Frondel, Manuel; Sommer, Stephan
    Abstract: Im Zuge der Energiewende geht der Ausbau der regenerativen Stromerzeugung in Deutschland mit hohem Tempo voran. Damit sind steigende Umlagen für die Förderung der Erneuerbaren sowie zunehmende Entgelte für den unvermeidlichen Ausbau der Stromnetze verbunden. Vor diesem Hintergrund untersucht der vorliegende Beitrag das Spannungsfeld zwischen der Befürwortung des Ausbaus der Erneuerbaren und den damit verbundenen Kosten auf Basis einer Erhebung unter mehr als 7.500 Haushalten aus dem Sommer 2017 und vergleicht die Ergebnisse mit früheren Erhebungen aus den Jahren 2013 und 2015. Es zeigt sich, dass die grundsätzliche Befürwortung der Förderung erneuerbarer Energien nach wie vor sehr hoch ist, aber die Zahlungsbereitschaft für grünen Strom im Zeitverlauf gesunken ist. Angesichts dieser Ergebnisse stellt sich die Frage nach der Akzeptanz der Bürger für die als Folge der Energiewende weiter wachsenden Belastungen.
    Keywords: EEG-Umlage,erneuerbare Energien,hypothetische Zahlungsbereitschaft,Kohleausstieg
    JEL: D12 Q21 Q41
    Date: 2018
  35. By: Sina Aghaei
    Abstract: Global oil price is an important factor in determining many economic variables in the world's economy. It is generally modeled as a stochastic process and have been studied through different techniques by comparing the historic time series of demand, supply and the price itself. However, there are many historic events where the demand or supply changes are not sufficient in explaining the price changes. In such cases, it is the expectations on the future changes of demand or supply that causes heavy and quick influences on the price. There are many parameters and variables that shape these expectations, and are usually neglected in traditional models. In this paper, we have proposed a model based on System Dynamics approach that takes into account these non-traditional factors. The validity of the proposed model is then evaluated using real and potential scenarios in which the proposed model follows the trend of the real data.
    Date: 2018–04
  36. By: Laté Ayao Lawson; Phu Nguyen-Van
    Abstract: Why do coastal located African countries seem more energies consuming? Do institutional and geographical factors matter to energy consumption as in the case of economic growth? Are there any spatial spillovers in primary energy use in Sub-Saharan Africa? To answer these questions which have been surprisingly few addressed in the existing literature, we empirically assess the link between energy use and economic growth in SSA, exploiting spatial data analysis methods. Our empirical results highlight the existence of positive spatial spillovers in primary energy use. We also derive factors (income, population dynamics and urbanization) explaining why coastal located countries are more energy intensive than inland ones. Furthermore, good political institutions encourage energy consumption, connoting a two side of the same coin phenomenon. Globally, our results impel African countries to develop alternative energies strategies and to deploy energy management policies, since increases in the demand for energies and related environmental consequences are expected in a near future.
    Keywords: Energy, institutions, locational and spatial effects, development.
    JEL: C23 O55 Q43 Q56
    Date: 2018
  37. By: Manfred Spiesberger (Centre for Social Innovation (ZSI), Vienna (Austria)); Javier Gomez Prieto (European Commission - JRC); Isabelle Seigneur (European Commission - JRC)
    Abstract: In this paper some ongoing tendencies of Social Innovation (SI) in the EU and its relation to the smart specialisation (S3) approach are discussed. The analysis is limited to the energy field, particularly to the context of renewable energy production, energy efficiency measures and heating and cooling. The paper is part of the policy support provided by the Smart Specialisation Platform on Energy (S3PEnergy) to EU regions and member states. Therefore the focus has been put on Smart Specialisation, and the relevance of such SI initiatives for economic development and potential upscaling in regions, and for an increased proactive consumer involvement. Smart specialisation is a regional policy framework for innovation driven growth. It helps to focus resources on key national and regional priorities, challenges, and needs for knowledge-based development. S3 is a bottom-up process relying on an entrepreneurial discovery process, which involves various stakeholders such as businesses, private stakeholders and policy makers for capacity and priority identification. It is evidence based and includes sound identification of priorities, monitoring and evaluation (RIS 3 guide, 2012; OECD, 2013). The social innovation approach is disaggregated here in the categories of organisational, social, financial, educational and business. Case studies were developed to understand the character of those categories.
    Keywords: Social Innovation, Smart Specialisation, Regional Policy, Regional Innovation, Energy Innovation.
    Date: 2018–06
  38. By: Yveline Lecler (IAO - Institut d'Asie Orientale - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Although Japan has abundant water resources, small and micro-scale hydropower which, according to surveys, potential is high, did not benefit much (compared to solar PV) from the Feed-in-Tariff scheme implemented in 2012 to more effectively support renewable energies. In a country whose energy self-sufficiency has always been low and is even lower since the Fukushima accident, it may seem somewhat surprising. Based on available surveys, literature on renewables, some interviews with smart communities' local authorities or researchers in Japan, this paper aims at discussing what the main issues relevant to explain this paradox are. It argues that reaching the government estimates towards 2050 will probably need more actions, incentives but more over a simplification of regulations, especially those on water management, which complexity is a major break to local promoters to engage in small and micro-scale hydropower projects, while local production/local consumption probably is one of the main issues for further development.
    Keywords: Japan,small and micro-scale hydropower,renewable energies,feed-in-tariff,water management and regulation
    Date: 2017–12–19
  39. By: Tomislav Gelo (University of Zagreb, Faculty of Economics and Business)
    Abstract: Energy is important for economic and social development while energy infrastructure is necessary element of growing energy demands. Infrastructure (including energy infrastructure like a power plant or transmission and distribution networks) is capital intensive activity and it has significant direct and indirect impact on macroeconomic variables like GDP or employment. Most world countries (developing countries primarily) do not have appropriate macroeconomic analytical tool/model and knowledge to calculate not only energy but also economic and social benefit from investment in energy sector. Developed countries usually use full econometric input-output (IO) models and Computable General Equilibrium (CGE) models.International Atomic Energy Agency (IAEA) assists Member States in capacity building and offers a set of computer models and a methodology. According to the previous mission IAEA two years ago started to develop new analytical tool under the new project Assessing the National and Regional Economic and Social Effects of Nuclear Programmes. Croatia as other 11 countries actively participated in this project. The final result of the project is Extended Input Output Model for Nuclear Power Plant Impact Assessment (EMPOWER). The model set up follows the traditional impact analysis with input-output analysis, where a new industry (new plant like nuclear power plant or any other power plant) is introduced. Model is simple static input-output model and use technical and commercial data from nuclear power plants for economic and social impact analysis.The model framework is designed for impact analysis including the following four model mechanisms: (A) Indirect effects (including direct effects), (AB) Indirect & induced effects (including direct effects), (ABC) Indirect & induced effects & labor market response (including direct effects), (ABCD) Indirect & induced effects & labor market response & feedback from financing of investment (including direct effects). Each model version from A to ABCD incorporates everything of the model version below plus one additional feature. The results of the model simulations are presented on two ways: as aggregate results (gross domestic impact, disposable income, total production, public net savings, private consumption, exports and imports, all at current as well as constant prices, and employment; as results by industry production at current as well as constant prices, and employment.
    Keywords: energy sector, Input-Output model, economic impact, analytical tool, effect
    JEL: C67 O11 Q43
    Date: 2017–07
  40. By: Victor Court (CERES-ERTI - Centre d'Enseignement et de Recherche sur l'Environnement et la Societé / Environmental Research and Teaching Institute - ENS Paris - École normale supérieure - Paris, Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); Emmanuel Bovari (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier)
    Abstract: This article provides a knowledge-based and energy-centered unified growth model of the economic transition from limited to sustained growth. We model the transition between: (i) a pre-modern organic regime defined by limited growth in per capita output, high fertility, low levels of human capital, technological progress generated by learning-by-doing, and rare GPT arrivals; and (ii) a modern fossil regime characterized by sustained growth of per capita output, low fertility, high levels of human capital, technological progress generated by profit-motivated R\&D, and increasingly frequent GPT arrivals. The associated energy transition results from the endogenous shortage of renewable resources availability, and the arrival of new GPTs which redirect technological progress towards the exploitation of previously unprofitable exhaustible energy. Calibrations of the model are currently in progress: (i) to replicate the historical experience of England from 1560 to 2010; and (ii) to compare the different trajectories of Western Europe and Eastern Asia.
    Keywords: Unified Growth Theory,Useful Knowledge,Energy Transition,Demography
    Date: 2018–01–31
  41. By: Daniela Machuca Moreno
    Abstract: El presente documento constituye una primera búsqueda sobre las potencialidades del crecimiento del sector eléctrico en Colombia encaminado a la exportación continua y creciente de energía eléctrica a los mercados de Centroamérica. Para empezar, se realiza una descripción sobre el panorama en materia de oferta y demanda de energía a nivel centroamericano con el fin de encontrar vacíos en la oferta del mercado que pudiesen ser suplidos por el sector eléctrico nacional. En seguida, se realiza una descripción sobre el estado actual de la generación y la transmisión de energía eléctrica a nivel nacional. En este apartado se incluye la mención al proyecto de transmisión de energía Colombia – Panamá. Tercero, se estudian algunas ventajas económicas que el país podría tener en términos comerciales y posibles marcos regulatorios ya existentes. Por último, se presentan algunas conclusiones.
    Keywords: sector eléctrico colombiano, transacciones internacionales de energía, mercado energético latinoamericano
    JEL: F13 F20 F43 L94
    Date: 2018–06–27
  42. By: Fabio Moliterni (Fondazione Eni Enrico Mattei)
    Abstract: This study investigates the growing importance of sustainability in equity markets by estimating whether company commitment to sustainability matters in corporate valuation. The spreading concern for social and environmental issues, and especially for the material risks of climate change, induces policy to encourage companies to prioritise sustainability in their decision making. There is growing evidence that points to a rationale for a profit-driven response to social and environmental problems, uncovering the role of sustainability in investors’ decisions. Exploring a panel of 3,311 listed companies in 58 countries for the period 2010-2016, this study reveals that sustainability contributes to the creation of market value for listed companies, over the considered period. Furthermore, it investigates how this relationship changes according to environmental policy stringency and sector sensitivity to climate policies.
    Keywords: Corporate Sustainability, Sustainable Investing, Climate-change, ESG Disclosures
    JEL: O16 Q54 Q56 G32
    Date: 2018–07
  43. By: Kaukin, Andrey (Russian Presidential Academy of National Economy and Public Administration (RANEPA))
    Abstract: The consequences of the crisis phenomena 2014-2015 led, among other things, to a decline, and then stagnant output in many key sectors of the economy. The market of air transportation, both internal and external, also faces negative impact of the latest macroeconomic and political changes. On the demand side there is a general decrease in the number of passenger traffic due to a fall in real incomes, on the company's offers side facing rising costs of the aircraft fleet and spare parts as a result of changes in the ruble exchange rate, reduced ability to attract external funding, the general negative expectations of domestic producers, including in the aircraft building sector, the state's unsustainable policy regarding the taxation of oil and oil products production. In this regard, it is especially important to search for key factors that have a critical impact on the development prospects of the industry and the development of appropriate economic policy measures.
    Date: 2018–06
  44. By: Alvi, Mohsin Hassan; Ansari, Sami ul Haque
    Abstract: An attempt was made to reveal the trends of natural resources in graphical form. Rental incomes which contribute to GDP were taken into account. For this purpose, economic statistics of Pakistan was taken from World Bank’s published data source. Data was put in SPSS-20 and comparative analysis chart was created to obtain the objectives. Results revealed no significant constant or linear trends in any factor of natural resources. It was concluded that oil and natural gas contributed significantly in the start of 21st Century. Mineral has been treated as neglected factor in contributing to GDP. A research can further expand to explore more trends of rental incomes in different regions of world. We would like to express our gratitude towards initial reviewer of draft and thank to people who helped us in completion of this study.
    Keywords: Oil Rents, Natural Gas Rents, Mineral Rents, Forest Rents, Coal Rents, Trend Analysis
    JEL: A1 E21 E6 E64 Y1
    Date: 2018–06–13
  45. By: Raza, Syed Ali; Shah, Nida
    Abstract: With the advent of globalization and industrialization, the life of human being has become luxurious, efficient and comfortable but at the same time, the economies are facing the challenge of environmental degradation. Environmental degradation has become the significant problem around the world and increasing day by day. Amongst many, the key reasons of this environmental degradation are the financial development and energy consumption. The purpose of this study is to examine the impact of financial development, economic growth and energy consumption on environmental degradation in Pakistan. We construct financial development index for Pakistan by applying principle component method on the major four proxies of financial development available in literature namely; domestic credit by banking sector, domestic credit to private sector, stock market capitalization, and liquid liabilities. The unit root test, co-integration test, and ordinary least square analyses have been applied on the historical data over the period of 1972-2014. The empirical evidence shows that all the variables have a significant positive effect on environmental degradation which means an increase in any variable will increase the environmental degradation. This study will be beneficial for the strategy makers and government of Pakistan in the formulation of eco-friendly strategies.
    Keywords: Financial Development, Economic Growth, Economic Consumption, CO2 Emission, Pakistan
    JEL: F18 O1
    Date: 2018
  46. By: Globisch, Joachim; Plötz, Patrick; Dütschke, Elisabeth; Wietschel, Martin
    Abstract: This paper explores factors that determine the usefulness of public charging infrastructure for electric vehicles from the point of view of its potential users. Our analysis is based on evaluations of different (hypothetical) public charging infrastructure networks by 1003 drivers of passenger cars from Germany. We employ a hierarchical linear model to explore the relevance of the attributes of public charging infrastructure as well as the influence of personal characteristics on the respondents' evaluations. Our main conclusions of the results are that public charging infrastructure is generally important to attract additional consumer segments to EVs. In addition charging duration at the autobahn as well as in cities seems to be more important to the mainstream passenger car drivers than the density of public charging spots. Our results also provide some indications regarding distinct target groups and the willingness to pay for public charging infrastructure.
    Keywords: public charging infrastructure,EVSE,user perspective,electric vehicle,willingness to pay,target groups
    Date: 2018
  47. By: Katharina Erdmann; Aleksandar Zaklan
    Abstract: Linking cap-and-trade systems promises gains in cost effectiveness and signals a strong commitment to carbon policy. Linking is also seen as one possible way of converging from regional climate policy initiatives toward a global climate policy architecture. Two linked systems have been established recently, one in Europe and one in North America. However, linking also comes with challenges, such as increased exposure to shocks originating in other parts of the linked system and a greater need for policy coordination. We first consider the benefits and challenges of linking conceptually. We then present some of the main features of the European and North American linked systems and outline the process that led to their establishment. Finally, we consider preliminary evidence on the workings of each linked system.
    Date: 2018
  48. By: Jain, Varinder
    Abstract: Even after 70 years of independence, a significant proportion of households in India are not having access to electricity. To correct this situation, the Hon'ble Prime Minister Shri Narendra Modi has announced recently a new scheme, Pradhan Mantri Sahaj Bijli Har Ghar Yojana, also called ‘Saubhagya’ scheme with an estimated expenditure of Rs. 16,320 crore. This brief note attempts to review this scheme through SWOT analysis along with providing some background to the State Effort in powering India at the household level.
    Keywords: India, Household Electrification, Rural Electrification, State Policy
    JEL: H24 H41 H54 I31
    Date: 2018–06

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