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on Energy Economics |
| By: | Imelda (Department of Economics, University of Hawai‘i at MÄ noa); Matthias Fripp (Department of Electrical Engineering, University of Hawai‘i at MÄ noa); Michael J. Roberts (Department of Economics & Sea Grant, University of Hawai‘i at MÄ noa) |
| Abstract: | On a levelized-cost basis, solar and wind power generation are now competitive with fossil fuels. But supply of these renewable resources is variable and intermittent, unlike traditional power plants. As a result, the cost of using flat retail pricing instead of dynamic, marginal-cost pricing—long advocated by economists—will grow. We evaluate the potential gains from dynamic pricing in high-renewable systems using a novel model of power supply and demand in Hawai’i. The model breaks new ground in integrating investment in generation and storage capacity with chronological operation of the system, including an account of reserves, a demand system with different interhour elasticities for different uses, and substitution between power and other goods and services. The model is open source and fully adaptable to other settings. Consistent with earlier studies, we find that dynamic pricing provides little social benefit in fossil-fuel- dominated power systems, only 2.6 to 4.6 percent of baseline annual expenditure. But dynamic pricing leads to a much greater social benefit of 8.5 to 23.4 percent in a 100 percent renewable power system with otherwise similar assumptions. High renewable systems, including 100 percent renewable, are remarkably affordable. The welfare maximizing (unconstrained) generation portfolio under the utility’s projected 2045 technology and pessimistic interhour demand flexibility uses 79 percent renewable energy, without even accounting for pollution externalities. If overall demand for electricity is more elastic than our baseline (0.1), renewable energy is even cheaper and variable pricing can improve welfare by as much as 47 percent of baseline expenditure. |
| Keywords: | Renewable energy, variable pricing, storage, demand response, optimization |
| JEL: | Q41 Q42 Q53 |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201803&r=ene |
| By: | Audrey Berry (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: | For households, taxing carbon raises the cost of the energy they use to heat their home and to travel. This paper studies the distributional impacts of the recently introduced French carbon tax and the design of compensation measures. Using a microsimulation model built on a representative sample of the French population from 2012, I simulate for each household the taxes levied on its consumption of energy for housing and transport. Without recycling, the carbon tax is regressive and increases fuel poverty. However, I show how compensation measures can offset these impacts. A flat cash transfer offsets tax regressivity by redistributing |
| Keywords: | Carbon tax,Distributional impacts,Fuel poverty,Revenue recycling,Microsimulation |
| Date: | 2018–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01691088&r=ene |
| By: | Potashnikov, Vladimir (Russian Presidential Academy of National Economy and Public Administration (RANEPA)) |
| Abstract: | Models of a representative energy system (RES) that describe in detail the energy system of a country or region at the level of production, transformation, distribution and consumption technologies for various types of energy are widely used for long-term supply and demand forecasts and emission reduction scenarios. The paper presents scenarios for reducing CO2 emissions from burning fossil fuels. |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:061828&r=ene |
| By: | Maxime Raynaud (EDF R&D - EDF R&D - EDF - EDF); Dominique Osso (EDF R&D - EDF R&D - EDF - EDF); Frédéric Marteau (EDF R&D - EDF R&D - EDF - EDF); Stanislas Nösperger (EDF R&D - EDF R&D - EDF - EDF) |
| Abstract: | The recent European energy proposals for the revision of the Energy Efficiency and the Energy Performance of Buildings Directives emphasize the importance of driving investments into the renovation of building stocks and stimulating retrofitting demand. Moreover, the ambitious targets on Green House Gas' abatement and energy consumption reduction require refurbishments to a high level of performance. This high level of performance subsequently represents high cost for households. Thus, with the necessity to lead to ambitious renovations, the question about the cost-effectiveness of the relevant level of performance has to be tackled. Unfortunately, the absence of reliable data often makes it difficult to answer this key question. In this paper, we rely on two different regional energy efficiency programmes providing incentives for performing refurbishment with a great importance dedicated to thermal insulation and air tightness. Covering a sample of around 50 households per programme, data on energy consumption and the characteristics of individual dwellings were collected as well as on refurbishment costs. Comparisons between the two programmes and within each programme provide information on the economic relevance of ambitious targets (in terms of energy and carbon). Both programmes pursue similar objectives but the cost associated were different. The first programme presents an average retrofit cost of 290 €/m² compared to an average cost of 415 €/m² for the second one, but both programmes present a large margin of uncertainty. On average the energy savings were 63 kWh/m² (final energy) for the less costly programme compared to 88 kWh/m² for the second programme. Concerning the non-energy impacts, the households express satisfaction about comfort increase and green value of their refurbished real estate property. The findings underline the crucial importance of both financial incentives and extra benefits such as asset value to enhance the accessibility of deep retrofit potential. |
| Date: | 2018–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01826170&r=ene |
| By: | Shahbaz, Muhammad; Balsalobre, Daniel; Shahzad, Syed Jawad Hussain |
| Abstract: | This paper examines the impact of biomass energy consumption on CO2 emissions and the environmental Kuznets curve (EKC) hypothesis in G-7 countries. We also incorporate capitalization, financial development and globalization measures (economic, social and political) as additional determinants of CO2 emissions. This study covers the period of 1980-2014. We apply the generalized moments method (GMM) for empirical analysis. The empirical results reveal that biomass energy consumption contributes to CO2 emissions. The EKC hypothesis is valid in G-7 countries. Capitalization is inversely linked with CO2 emissions. Financial development deteriorates environmental quality. Foreign direct investment (FDI) and trade openness improve environmental quality. Globalization increases CO2 emissions. Institutional quality improves environmental quality through effective economic and environmental policies. Urbanization impedes environmental quality. These results provide new insights for policy makers in designing comprehensive environmental policy by considering biomass energy as an economic tool for sustainable economic development and to improve environmental quality. |
| Keywords: | Biomass Energy, EKC, G-7 countries, GMM |
| JEL: | A10 |
| Date: | 2018–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:87456&r=ene |
| By: | Asongu, Simplice A; Odhiambo, Nicholas M. |
| Abstract: | In the light of challenges to sustainable development in the post-2015 development agenda, this study assesses how increasing carbon dioxide (CO2) emissions affect inclusive human development in 44 countries in sub-Saharan Africa for the period 2000-2012. The following findings are established from Fixed Effects and Tobit regressions. First, unconditional effects and conditional impacts are respectively positive and negative from CO2 emissions per capita, CO2 emissions from liquid fuel consumption and CO2 intensity. This implies a Kuznets shaped curve because of consistent decreasing returns. Second, the corresponding net effects are consistently positive. The following findings are apparent from Generalised Method of Moments (GMM) regressions. First, unconditional effects and conditional impacts are respectively negative and positive from CO2 emissions per capita, CO2 emissions from liquid fuel consumption and CO2 intensity. This implies a U-shaped curve because of consistent increasing returns. Second, the corresponding net effects are overwhelmingly negative. Based on the robust findings and choice of best estimator, the net effect of increasing CO2 emissions on inclusive human development is negative. Policy implications are discussed. |
| Keywords: | CO2 emissions; Sustainable development; Inclusiveness; Environmental policy; Africa |
| Date: | 2018–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:23840&r=ene |
| By: | Arlan Brucal (London School of Economics); Michael J. Roberts (University of Hawai’i at MÄ noa) |
| Abstract: | Using a sample of 48 contiguous U.S. states for the period 1973-2013, we study how oil price shocks influence state-level economic growth. The analysis incorporates (1) a structural decomposition of the supply and demand factors that drive the real price of crude oil; (2) heterogeneity of states in terms of their production and consumption of oil and natural gas; and (3) economic spillovers across neighboring states. Oil price effects vary across states, depending on the underlying source of the price shock and a state’s average production of oil relative to its average consumption. Oil- exporting states are more vulnerable to unanticipated changes in oil prices, and the direct effect of oil price shocks can magnify or temper effects on neighboring states. Aggregated predictions from the state-level model also differ modestly from stand-alone aggregate model (Kilian , 2009 ). The aggregated state-level model implies that the recent (2005-2016) decline in U.S. dependence on foreign oil reduced aggregate sensitivity to exogenous supply shocks by more than a third. |
| Keywords: | Oil price shocks, economic spillovers, dynamics |
| JEL: | E32 Q43 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:hai:wpaper:201807&r=ene |
| By: | Odhiambo, Nicholas M.; Nyasha, Shiella |
| Abstract: | In this study, the dynamic causal relationship between oil price and economic growth in Kenya has been explored during the period from 1980 to 2015. A trivariate Granger-causality framework that incorporates oil consumption as an intermittent variable ??? in an effort to address the omission-of-variable bias ??? has been employed. Using the newly developed ARDL bounds testing approach to co-integration and the Error-Correction Model-based Granger-causality framework, the results of the study reveal that there is distinct unidirectional Granger-causality flowing from economic growth to oil price in the study country. These results were found to apply both in the short run an in the long run. Thus, it can be concluded that in Kenya, it is the real sector that pushes oil prices up. Further, it is possible to predict oil price changes in Kenya ??? given the changes in economic growth. |
| Keywords: | Kenya, Oil Prices, Energy Consumption, Economic Growth, Granger-Causality |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:uza:wpaper:24411&r=ene |
| By: | Miguel A. Meléndez-Jiménez (Department of Economics, University of Málaga); Arnold Polanski (School of Economics, University of East Anglia) |
| Abstract: | We apply a network approach to analyze individual and aggregate consumption that generates predominately local pollution (e.g., noise, water and air quality, waste disposal sites). This allows us to relate the individual pollution levels to network centralities and to design policy measures aimed at reducing the aggregate contamination. We then apply our theoretical framework to analyze the European data on fossil fuel energy consumption and discuss possible transfer schemes that, according to our model, would result in lower aggregate levels of pollution in the EU. |
| Keywords: | local pollution, negative externalities, networks |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:mal:wpaper:2018-6&r=ene |
| By: | de Haas, Ralph (Tilburg University, Center For Economic Research); Popov, A. |
| Abstract: | We study the impact of financial market development on industrial pollution in a large panel of countries and industries over the period 1974-2013. We find a strong positive impact of credit markets, but a strong negative impact of stock markets, on aggregate CO2 emissions per capita. Industry-level analysis shows that stock market development (but not credit market development) is associated with cleaner production processes in technologically "dirty" industries. These industries also produce more green patents as stock markets develop. Moreover, our results suggest that stock markets (credit markets) reallocate investment towards more (less) carbon-efficient sectors. Together, these findings indicate that the evolution of a country's financial structure helps explain the non-linear relationship between economic development and environmental quality documented in the literature. |
| Keywords: | financial development; industrial pollution; innovation; reallocation |
| JEL: | G10 O4 Q5 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:a0a4fb82-734a-442a-9ea1-a270843d4cd2&r=ene |
| By: | Christoph Böhringer; Nicholas Rivers |
| Abstract: | We develop a stylized general equilibrium model to decompose the rebound effect of energy efficiency improvements into its partial and general equilibrium components. In our theoretical analysis, we identify key drivers of the general equilibrium rebound effect, including a composition channel, an energy price channel, a labor supply channel, and a growth channel. Based on numerical simulations with both the stylized model as well as a large-scale computable general equilibrium model of the global economy, we show that both general and partial equilibrium components of the rebound effect can be substantial. Our benchmark parameterization suggests a total rebound effect due to an exogenous energy efficiency improvement in the US manufacturing sector of 67% with roughly two-thirds occurring through the partial equilibrium rebound channel and the remaining one-third occurring through the general equilibrium rebound channel. |
| Keywords: | energy efficiency, climate change, rebound effect, general equilibrium |
| JEL: | C68 D58 Q43 Q55 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7116&r=ene |
| By: | Demary, Markus; Neligan, Adriana |
| Abstract: | The European Union is currently making significant strides to lead on green finance and align its financial system with its climate, sustainability and clean energy ambitions. The Paris Climate Agreement, the G20 Green Finance Study Group and the G19 Hamburg Climate and Energy Action Plan have provided ongoing momentum for policy moves towards a green financial system. Including financial markets into a climate strategy is a logical step forward, because public funds are insufficient to finance the needed investments in green technology and because the financial sector shows interest in financing green technology. Given the long-term nature of green investments and the financial market's short-termism, the establishment of a liquid market for green bonds is the market solution to this maturity mismatch. However, for such a market to thrive, investors need a definition of green technology as well as a definition of what a green bond is. In addition to that, green disclosure rules are needed, so that investors can easily access information on how the proceedings of green bonds are invested. The EU's main efforts in establishing a market for green bonds are the legislation of a common taxonomy for green bonds and the stimulation of the demand for green bonds by a green supporting factor in bank capital regulation. While we agree that a common taxonomy will help investors to screen green projects, we are very sceptical about the green supporting factor, which causes lower equity capital requirements for green investments. We see the risk that this may give rise to an undercapitalisation of banks with respect to the default risks of green projects and an overinvestment of banks into these projects. Since the green bond market is a political project, there is the danger of privileging green bonds in financial regulation for achieving political goals. The emergence of a green bond bubble and the bursting of that bubble would be harmful to the financial sector and it would hinder reaching the climate goals, since investors will abstain from investments in which they have lost money before. We derive the risk of political interventions to stimulate the demand for green bonds from our estimates, which indicate that annual green bond emissions have to grow by the factor 45 in order to finance the potentially needed overall annual investments of up to USD 7 trillion making a higher indebtedness or significant portfolio shifts necessary. Looking only at incremental investments needs to reach the climate goal green bond issuance would also have to increase up to the factor 4.5 and to reach the Sustainable Development goals by the factor 15. Instead of pushing for a fast growth of the green bond market, the EU should strive for its organic growth. Therefore, it should rely on market intelligence, i.e. the market participant's risk assessments for the green projects' default risks together with the market participants evalua-tion of the greenness of green investment projects. To this end, the proposed harmonisation of the taxonomy within the EU is a necessary step, because different national taxonomies would hinder the emergence of cross-border markets for green bonds. The EU cared about the con-sistency of the green bond proposal with other regulations for financial institutions, but it would be necessary to guarantee consistency also in the future. Otherwise, unintended side effects could distort the investment decisions of financial companies. |
| JEL: | E22 G11 G12 O16 Q01 Q54 Q56 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkrep:282018&r=ene |
| 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) |
| Abstract: | Survivre au froid en hiver et au chaud en été sont des besoins humains essentiels, tout comme manger cuit dans un air intérieur libre de fumée. L'objectif de développement durable « Accès à une énergie propre et abordable pour tous » reconnaît ainsi un droit à l'énergie comme une juste exigence universelle. Mais le garantir au quotidien pour sept milliards de contemporains soulève des questions pratiques : Les pays en développement ont ils le droit d'utiliser les énergies fossiles comme l'ont fait les pays riches ? Comment définir et repérer les ménages en situation de précarité énergétique, et comment les aider ? Ce texte propose quelques réponses concrètes, qui s'appuient sur le cas d'un pays riche la France, et d'un pays à revenu intermédiaire le Vietnam. |
| Date: | 2018–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01692449&r=ene |
| By: | Kavous Ardalan (Marist College) |
| Abstract: | Two major open-economy theories are the Keynesian and Monetarist theories. The goal of the study is to empirically discriminate between the two theories. Keynesian and monetarist views about the homeostatic mechanism are fundamentally different and provide a basis for constructing discriminatory empirical tests. The Keynesian theory holds that there is no, or only a very weak, homeostatic mechanism and, in the absence of government intervention, real income tends to remain below the level of full employment. In the monetary interpretation, the homeostatic mechanism is strong, and real income can be treated as though it were exogenous. This study examines the response of the Netherlands to the sharp increase in oil prices in late 1973. The experience of the Netherlands, as an oil-importing country, supports the Keynesian view. |
| Keywords: | Open Economy; Keynesian; Monetarist; Controversy; Oil Price Rise; Macroeconomics |
| JEL: | E00 |
| Date: | 2017–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:5407612&r=ene |
| By: | Neuhoff, Karsten; Richstein, Jörn; Piantieri, Carlotta |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:180382&r=ene |
| By: | Mehrdad Vahabi (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In my studies, I have explored the political economy of Iran and particularly the relationship between the state and socioeconomic development in this country. The importance of the oil revenue in economic development of contemporary Iran has been underlined since the early seventies and a vast literature on the rentier state and authoritarian modernization has scrutinized the specificities of the political and economic natural resource 'curse' in Iran. A new critical social history of the oil industry has recently endeavored to reconsider the spread effects of this industry on the emergence of new cities and labor activities. In this sense, the impact of oil revenue on economic development should be mitigated: it has not been only a 'curse' but also a 'blessing'. The precious results of natural resource curse or blessing notwithstanding, this approach is insufficient to explain why some predatory states reliant on natural resources could contribute to economic development while others hinder such development. Two recent examples provide a salient illustration: why did the Shah's regime which was dependent on oil revenues enhance economic development during 1962-1974, while Ahmadinjead's two terms presidency (2005-2013) imped economic growth despite the quadrupling of oil revenues? In this essay, I will first introduce my theoretical framework and distinguish two types of predatory states, i.e. inclusive and exclusive (section 1). I will then apply this framework to explain oil and economic development (section 2). Section 3 will be devoted to the Shah's regime as an inclusive predatory state, and section 4 to Ahmadinjead's presidency as an illustration of an exclusive predatory state. A short conclusion will follow. |
| Keywords: | Capital flight,Captive, Intermediary and Fugitive assets,Confiscatory regimes,Inclusive and Exclusive Predatory States,Islamic Republic of Iran,Land Reform,Oil revenues,the Shah regime |
| Date: | 2017–09–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01583595&r=ene |
| By: | Frédéric Ghersi (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: | This working paper details in 3 sections (i) the data collection and treatment that were necessary to apply IMACLIM-P to a 28-country European Union (EU); (ii) the particulars of a version of IMACLIMP dedicated to a prospective outlook on the penetration of electric passenger cars in the EU, including how results of the PAN-EU TIMES model of energy systems can be imported in IMACLIMP, together with the complete set of equations of the model; (iii) model implementation. |
| Date: | 2018–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01691740&r=ene |
| By: | Maurer, Stephan E. |
| Abstract: | This paper studies the effect of oil wealth on the provision of education in the early 20th century United States. Using information on the location and discovery of major oil fields, I find that oil wealth increased local revenue and education spending. The quality of white teachers increased, and oil-rich counties were more likely to participate in the Rosenwald school building program for blacks. In addition, student-teacher ratios for black school children declined substantially. However, I do not find increased school enrollment rates for either race. |
| Keywords: | oil; education; race; Rosenwald; local public finances; resource booms; teachers |
| JEL: | I2 N3 Q3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:88677&r=ene |
| By: | Stéphane Gauthier (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne); Fanny Henriet (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | Pigovian tax,targeting principle,local externality,pollution,commodity taxes |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:psewpa:halshs-01826330&r=ene |
| By: | Benjamin Dachis (C.D. Howe Institute) |
| Abstract: | Ottawa should clear up confusion about its plans for clean fuel standards, according to a new report by the C.D. Howe Institute. In “Speed Bump Ahead: Ottawa Should Drive Slowly on Clean Fuel Standards” author Benjamin Dachis argues federal policymakers must examine the inherent limitations and potential economic costs of a clean fuel standard system. |
| Keywords: | Energy and Natural Resources; Business Subsidies and Preferences;Efficiency and Productivity;Environmental Policies and Norms;Oil and Gas;Regulatory Burden;Transportation |
| JEL: | Q4 Q42 |
| URL: | http://d.repec.org/n?u=RePEc:cdh:ebrief:279&r=ene |
| By: | Giovanni Marin (Università degli Studi di Urbino 'Carlo Bo', SEEDS - Sustainability Environmental Economics and Dynamics Studies (Università degli Studi di Ferrara)); Marianna Marino (ICN Business School, BETA - Bureau d'Économie Théorique et Appliquée - INRA - Institut National de la Recherche Agronomique - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique); Claudia Pellegrin (EPFL - Ecole Polytechnique Fédérale de Lausanne) |
| Abstract: | The European Emission Trading Scheme (EU ETS) has introduced a price for carbon, thus generating an additional cost for companies that are regulated by the scheme. The objective of this paper is to provide empirical evidence on the effect of the EU ETS on firm-level economic performance. There is a growing body of empirical literature that investigates the effects of the EU ETS on firm economic performance, with mixed results. Differently from the previous literature, we test the effect of the EU ETS on a larger set of indicators of economic performance: employment, average wages, turnover, value added, markup, investment, labour productivity, total factor productivity and ROI. Our results, based on a large panel of European firms, provide a broad picture of the economic impact of the EU ETS in its first and second phases of implementation. Contrarily to the expectations, the EU ETS did not affect economic performance negatively. Results suggest that firms have reacted to the EU ETS by passing-through costs to their customers on the one hand and improving labour productivity on the other hand. |
| Keywords: | European Emission Trading Scheme, economic performance |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01768870&r=ene |
| By: | Sarah Dobson; Jennifer Winter (University of Calgary); Brendan Boyd |
| Abstract: | In this paper we provide a comparison of the coverage of Canadian carbon pricing systems. We define coverage as the proportion and types of emissions priced under the various systems, by emissions source. We compare provincially announced pricing systems to the federal benchmark (the minimum coverage provinces must meet) and the federal backstop, the pricing system that will be imposed on provinces with insufficient coverage or who opt to not develop their own policies. For those provinces that have not yet introduced a carbon price we look only at coverage under the federal benchmark and the federal backstop. We find the majority of provincial pricing systems meet or exceed the federal benchmark. Our results also point to the importance of additional complementary policies to address significant sources of unpriced emissions, primarily in agriculture and fugitive sources. |
| URL: | http://d.repec.org/n?u=RePEc:clg:wpaper:2018-07&r=ene |
| By: | Svensson, Lars E O |
| Abstract: | The paper discusses how monetary and macroprudential policies can be distinguished, how appropriate goals for the two policies can be determined, whether the policies are best conducted separately or coordinately and by the same or different authorities, and how they can be coordinated when desired. The institutional frameworks in Canada, Sweden, and the UK are briefly compared. The Swedish example of monetary policy strongly "leaning against the wind" and the subsequent policy turnaround is summarized, as well as what estimates have been found of the costs and benefits of leaning against the wind. |
| Keywords: | Financial crises; Financial Stability; leaning against the wind |
| JEL: | E44 E52 E58 G01 G28 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:13043&r=ene |
| By: | Juan Benavides; Fedesarrollo |
| Abstract: | Este documento recoge observaciones relevantes de los miembros de Naturgas al Entregable 1. Se reordena el material de discusión de las propuestas del documento CREG D-050-16 “Metodología para remunerar la actividad de transporte de gas natural”, y del proyecto de Resolución CREG 90 de 2016 “Por la cual se establecen los criterios generales para la remuneración del servicio de transporte de gas natural y el esquema general de cargos del Sistema Nacional de Transporte, y se dictan otras disposiciones en materia de transporte de gas natural”, y documentos y decisiones relacionadas. Luego se efectúan propuestas a los asuntos que pueden mejorar en el esquema de remuneración del transporte de gas natural bajo los principios de eficiencia económica, prudencia y transparencia. Específicamente, se presentan recomendaciones para asegurar (i) coherencia entre riesgo y remuneración de la actividad de transporte de gas natural en Colombia, (ii) mayor calidad y estabilidad de las estimaciones de parámetros del costo promedio ponderado del capital (WACC). |
| Keywords: | Gas Natural, Transporte de Gas Natural, Sistema Nacional de Transporte, Costo de Transporte |
| JEL: | L95 L91 O18 R41 |
| Date: | 2017–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:col:000124:016399&r=ene |
| By: | Palmer, Charles; Taschini, Luca; Laing, Timothy |
| Abstract: | Acre State in Brazil is at the forefront of efforts to institutionalize jurisdictional-scale policies that aim to reduce emissions from deforestation and forest degradation (REDD+). Given limited REDD+ funds and uncertain returns from alternative land uses, this paper estimates the minimum incentive payment Acre’s government would have to pay forest landowners in each of its 22 municipalities to ensure forest conservation. Despite lower profits but with lower conversion costs and more stable returns over time relative to corn and coffee production, cattle pasture generates the highest returns in 19 municipalities. Municipalities are ranked according to their relative policy costs, a ranking which is compared to the distribution of forest carbon stocks across Acre. Finally, the relative cost per tonne of carbon is derived, which enables the identification of a group of 13 municipalities with the greatest potential for ‘carbon bang’ for a given ‘buck’. |
| Keywords: | Acre; cost-effectiveness; forest conservation; option value; payments for environmental services; reducing emissions from deforestation and degradation (REDD+); uncertainty |
| JEL: | N0 |
| Date: | 2017–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:81915&r=ene |
| By: | Dominique Osso (EDF R&D - EDF R&D - EDF - EDF); Catherine Grandclément (EDF R&D GRETS - Groupe de Recherche Energie, Technologie et Société - EDF R&D - EDF R&D - EDF - EDF); Aurélie Tricoire (CSTB - Centre Scientifique et Technique du Bâtiment); Marie-Hélène Laurent (EDF R&D - EDF R&D - EDF - EDF); Stanislas Nösperger (EDF R&D - EDF R&D - EDF - EDF) |
| Abstract: | This paper tackles the crucial issue of price structure in the energy retrofit market of the private residential sector. It is based on a quantitative study of retrofit prices in France (1,000+ invoices) and a qualitative sociological survey of installers (25 open-ended interviews). We show a strong dispersion of prices within single retrofit-work categories (e.g. boiler, insulation). Half of the dispersion is explained by technical and economic reasons (brand and quality of product, housing size, type of company, discount…). This means that from a technical standpoint, the price is correct. Other components of the price are revealed by the qualitative survey. On the customer side, the refurbishment market is marked by a strong uncertainty. It is technically complex and there is a concern about poor workmanship, hence the role of reputation and trust. These are factored in the price as a " confidence premium " which makes the price fair from the customers' point of view. On the installer side, the price is formed at the crossroads of three characteristics: the perception of the household willingness to pay, the management practices of the company (profit margin calculation, load plan) and an adjustment to current local market prices. The fair price from the installer point of view is the price that allows his company to survive or make profit and to win new contracts. However, a determining factor of the price lies in the installer's recommendation of exactly which work to do and with which material or equipment. For a given energy performance, several technical solutions exist that impact the final price. To conclude, we note that observed prices may differ from the technically " correct " price but this doesn't mean that prices are inaccurate. Prices incorporate qualitative dimensions such as the accessibility of the site or the work quality of the company (being on-schedule, cleanliness of the work, etc.) that make them " fair " in practice. As a policy consequence, rather than a direct intervention on prices which is complex, governmental action might focus on standardizing the presentation of quotation, craftsmen company management and on assisting customers in their choices. |
| Date: | 2018–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01826167&r=ene |
| By: | Amine Chbihi Moukit (Amine chbihi Moukit A-E) |
| Date: | 2018–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01826198&r=ene |