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on Energy Economics |
| By: | Rick can der Ploeg |
| Abstract: | A cap on global warming implies a tighter carbond bufget which can be enforced with a crecible second-best renewable energy subsidy design to lock up fossil fuel and curb manipulative emissions. Such a subsidy brings forward the end of hte fossil fuel era, but accelerates fossil fuel exctraction and global warming in the short run. A weaker fossil fuel oligopoly implies that anticipation of the a given global carbon budget induces fossil producers to deplete reserves more voraciously and accelerate global warming. This ran to burn the last ton o carbon is more intensive for the feedback than open-loop Nash equilibrium, so that the Green Paradox effect of a renewable energy subsidy is stronger. There is an intermideiate phase of limit pricing to keep renewable energy prodyucers at bay, which becomes much more relevant when a cap on global warming is enforced. A stronger fossil fuel oligopoly lengthens the period of limit pricing and typically brings forward the carbon-free era. Finally, the mere risk of a cap on global warming being enforced at some uknown, future date makes fossil fuel extraction more voracious and accelerates global warming. |
| Keywords: | Second-best climate policy, Green Paradox, carbon budget, strnaded assets, oligopolistic resource marker, limit pricing, voracious extraction, regime shift |
| JEL: | H21 Q51 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:201&r=ene |
| By: | Frederick van der Ploeg; Armon Rezai |
| Abstract: | A simple rule for the optimal global price of carbon is presented, which captures the geo-physical, economic, and ethical drivers of climate policy as well as the effect of uncertainty about future growth of consumption. There is also a discussion of the optimal carbon budget and the amount of unburnable carbon and stranded fossil fuel reserves and a back-on-the-envelope expression are given for calculating these. It is also shown how one can derive the end of the carbon era and peak warming. This simple arithmetic for determining climate policy is meant to complement the simulations of large-scale integrated assessment model, and to give analytical understanding of the key determinants of climate policy. The simple rules perform very well in a full integrated assessment model. It is also shown how to take account of a 2°C upper limit on global warming. Steady increases in energy efficiency do not affect the optimal price of carbon, but postpones the carbon-free era somewhat and if technical progress in renewables and economic growth are strong leads to substantially lower cumulative emissions and lower peak global warming. |
| Keywords: | social cost of carbon, climate ethics, prudence, carbon budget, peak warming, end of carbon era, stranded assets, simple rules, energy efficiency |
| JEL: | H21 Q51 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:197&r=ene |
| By: | Glenk, Gunther (Technical University of Munich); Reichelstein, Stefan J. (Stanford University) |
| Abstract: | We examine the magnitude of synergistic effects in vertically integrated energy systems that arise when the external market for an intermediate input (electricity) is imperfect and the two subsystems are subject to operational volatility in terms of price and output fluctuations. The front part of our analysis develops a model for identifying when a vertically integrated energy system exhibits synergistic value. Specifically, we provide necessary and sufficient conditions for the value (NPV) of the integrated system to exceed the sum of the maximized values of the two subsystems on their own. We then apply this framework to current settings in Germany and Texas for systems that combine wind energy with Power-to-Gas (PtG) facilities that produce hydrogen. Depending on the attainable market prices for hydrogen attainable in particular segments, we find that synergistic values emerge in select scenarios. In the context of Texas, it turns out that neither electricity production from wind power nor hydrogen production from PtG facilities will be profitable on its own in the current market environment. Yet, provided the capacity of the two subsystems is sized optimally in relative terms, the attendant synergistic gain from a vertically integrated system more than compensates for the stand-alone losses of the subsystems. |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:3665&r=ene |
| By: | Marina Bertolini (University of Padova); Marco Buso (University of Padova); Luciano Greco (University of Padova) |
| Abstract: | In the last few decades, liberalization and energy transition have deeply reshaped crucial segments of the electric industry (e.g., power generation, energy trading and retail supply) in several countries around the world posing. The development of smart grids is considered a solution to face the new challenges that arise by such dynamics. Our critical analysis of interdisciplinary literature and governmental documents highlights that input-based or outputbased regulation is not implementable in the case of smart grids because of unclear deï¬ nition of smart performance. Thus, we introduce a new deï¬ nition of grid smartness that is based on the volatility of market energy prices and flows and we develop a simple industrial-organization model of the electric market to analyze the impact of smart grids on competition and to assess the incentives of distribution system operators to invest in smart grids. We ï¬ nd that smartgrid investments foster the aggregate supply of energy, though with controversial effects on suppliers’ proï¬ ts. We also ï¬ nd that the investments in smart grids implemented by the distribution system operators is suboptimal because they fail to internalize positive externalities on energy consumers and producers. |
| Keywords: | Electricity markets, investments, risk aversion, Distribution System Operator |
| JEL: | L13 L51 L94 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0226&r=ene |
| By: | Elizabeth Baldwin; Yongyang Cai; Karlygash Kuralbayeva |
| Abstract: | We investigate how irreversibility in “dirty” and “clean” capital stocks affectsoptimal climate policy, from both theoretical and numerical perspectives. An increasing carbon tax will reduce investments in assets that pollute, and so reduce emissions in the short term: our “irreversibility effect”. As such the “Green Paradox” has a converse if we focus on demand side capital stock effects. We also show that the optimal subsidy increases with the deployment rate: our “acceleration effect”. Considering second-best settings, we show that, although carbon taxes achieve stringent targets more efficiently, infact renewable subsidies deliver higher welfare when policy is more mild. |
| Keywords: | Infrastructure; Clean and Dirty Energy Inputs; Renewable Energy; Stranded Assets; Carbon Budget; Climate Change Policies; Green Paradox |
| JEL: | O44 Q54 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:204&r=ene |
| By: | Rafal Weron; Florian Ziel |
| Abstract: | Electricity price forecasting (EPF) is a branch of energy forecasting on the interface between econometrics/statistics and engineering, which focuses on predicting the spot and forward prices in wholesale electricity markets. Its beginnings can be traced back to the early 1990s, when power sector deregulation led to the introduction of competitive markets in the UK and Scandinavia. The changes quickly spread throughout Europe and North America, and nowadays - in many countries worldwide - electricity is traded under market rules using spot and derivative contracts. Over the last 25 years, a variety of methods and ideas have been tried for EPF, with varying degrees of success. In this chapter we first briefly discuss the forecasting horizons and the types of forecasts, then review the forecasting tools and the evaluation techniques used in the EPF literature. |
| Keywords: | Electricity price forecasting; Probabilistic forecast; Ensemble forecast; Day-ahead market; Intraday market; Regression; Computational intelligence; Reduced-form model; Multi-agent simulation; Model evaluation; Predictive ability test |
| JEL: | C22 C32 C45 C51 C53 C70 L11 Q41 Q47 |
| Date: | 2018–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:wuu:wpaper:hsc1808&r=ene |
| By: | Yun Zheng (Xinyang Normal University); Jie Huang (Xinyang Normal University); Jianfeng Wang (Millersville University of Pennsylvania) |
| Abstract: | Improving energy and environmental efficiency is an inevitable choice for developing countries to achieve sustainable economic and social development. Using VAR Granger causality test method (Granger, 1969), this study identifies the spatial correlation of energy environmental efficiency based on provincial panel data sample between 1995 and 2015 in China; further through the QAP analysis model (Liu, 2014), the factors influencing the spatial correlation network of energy environmental efficiency is empirically analyzed. The results show that the differences of economic development level, energy consumption structure, industrial structure, environmental regulation and technological innovation are significantly correlated with spatial correlation network of energy environmental efficiency; similar economic development level, technical level and industrial structure are beneficial to the formation of spatial correlation network of energy environmental efficiency while the differences of energy consumption structure and environmental regulation have little impact on this process. |
| Keywords: | energy environmental efficiency; spatial correlation network; impact factors. |
| JEL: | Q43 Q48 Q40 |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7208749&r=ene |
| By: | Ivan Tilov; Benjamin Volland |
| Abstract: | In this article, we investigate the heterogeneity in household electricity demand in Switzerland. We use a quantile regression approach in order to assess the impacts of electricity prices, income and other socio-demographic characteristics across consumer groups with increasing energy intensities. Estimations show important differences between the "average Joe", the "frugal Jane" and the "wasteful John" for the majority of these variables. Most importantly, households in the lowest deciles of electricity use do not react to changes in electricity prices, while those situated at upper-end of the electricity spectrum exhibit significantly negative short-run price elasticities varying between -0.16, -0.19, -0.21 and -0.27 at the at the 6th, 7th, 8th and 9th deciles, respectively. We also find that low users of electricity react positively and significantly to changes in their wealth compared to intensive electricity consumers. The main policy implications of this work concern the design of price-based measures for reducing electricity consumption in the residential sector and the possibility of accounting for individual responses in tailoring policies, governance mechanisms and business models. |
| Keywords: | Heterogeneity; Quantile regression; Households; Electricity; Electricity prices; Switzerland |
| JEL: | Q40 Q41 D12 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:18-07&r=ene |
| By: | Munoz, John (Stanford University); Olzak, Susan (Stanford University); Soule, Sarah A. (Stanford University) |
| Abstract: | A major goal of the environmental movement is to conserve or improve the natural environment, but evidence showing that environmental mobilization produces positive environmental outcomes is mixed. This paper addresses a fundamental question about the relative impact of pro-environmental mobilization and the scope of an environmental policy regime on the natural environment. Using panel data at the state level from 1990-2007, we explore how environmental protest and environmental policies independently (or jointly) reduce CO2 emissions in U.S. states. We find that the level of emissions in a state declines in states with increases in pro-environmental protest, net of the effects of the range of environmental policies enacted, gasoline taxes, liberal attitudes, reliance on the fossil fuel industry, number of registered lobbyist organizations, average state product, and population size. |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:3698&r=ene |
| By: | Ridha Nouira; Thouraya Hadj Amor; Christophe Rault |
| Abstract: | The aim of this paper is to investigate the exchange rate consequences of oil-price fluctuations and to test for the dynamics of oil price volatility by examining interactions between oil market and exchange rate in selected MENA countries (Egypt, Jordan, Morocco, Qatar, Saudi Arabia, Tunisia, and UAE). Using daily time series data covering the period from January 1, 2001 to December 29, 2017, we implement the test for asymmetric non-causality of Hatemi-J (2012), the asymmetric generalized impulse response functions of Hatemi-J (2014), and the test for noncausality-in-variance of Hafner and Herwartz (2006) to examine the presence of volatility spillover between oil prices and exchange rates return series. The econometric investigation reveals in particular that i) when prices are rising in Tunisia and Saudi Arabia, oil prices cause change in exchange rates, and ii) there is significant evidence of volatility spillovers from oil markets to exchange rate markets in the selected MENA countries. These findings have important implications both from the investor's and from the policy-maker's perspective. |
| Keywords: | oil price shocks, exchange rate volatility, asymmetric causality test, asymmetric generalized impulsion functions, causality-in-variance tests, MENA countries |
| JEL: | F31 G01 Q43 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7201&r=ene |
| By: | Larry Karp (UC Berkeley); Armon Rezai (WU Vienna University of Economics and Bu) |
| Abstract: | People might reduce carbon emissions to protect themselves, their wealth, or future generations from climate damage. An overlapping generations climate model with endogenous asset price and investment levels disentangles these incentives. Asset markets capitalize the future effects of policy, regardless of people’s concern for future generations. These markets can lead self-interested agents to undertake significant abatement. A small climate policy that raises the price of capital increases old agents’ welfare and also increases welfare of young agents with a high intertemporal elasticity of substitution. Climate policy can also have subtle distributional effects across the currently living generations. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed018:595&r=ene |
| By: | Ton S. van den Bremer; Rick van der Ploeg |
| Abstract: | Leading-order results from asymptotic analysis for the optimal price of carbon under uncertainty are derived from a macroeconomic continuous-time DSGE model with AK growth, energy use, adjustment costs, recursive utility and costs of global warming. We consider non-climatic productivity growth uncertainty, atmospheric carbon uncertainty, climate sensitivity uncertainty and climate damage uncertainty. Explicit expressions are derived that show the leading-order dependence of the optimal carbon price on these uncertainties, the various climate betas, risk aversion, intergenerational inequality aversion and convexity of the climate damage specification. Our solution allows for skewness and mean reversion in stochastic shocks to the climate sensitivity and damage coefficients. The resulting rule for the optimal risk-adjusted carbon price incorporates precautionary, risk-insurance and risk-exposure effects to deal with future economic and climatic risks. The stochastic processes are calibrated and used to estimate and interpret the impact of each source of uncertainty on the optimal risk-adjusted carbon price. |
| Keywords: | social cost of carbon, precaution, insurance, economic and climatic uncertainties, skewness, mean reversion, climate betas, risk aversion, prudence, intertemporal substitution, intergenerational inequality aversion, convex damages, DSGE |
| JEL: | H21 Q51 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:203&r=ene |
| By: | Arinze Nwokolo |
| Abstract: | This paper studies the effect of international oil prices on civil conflict in Nigeria. Our analysis uses time variation in global oil prices and cross-sectional variation based on the initial distribution of oil production across Nigerian districts. According to our estimates, an increase in oil price increases the risk of civil conflicts in districts that produce oil by at least 63 percent. Using data on intergovernmental transfers, labor outcomes and firm characteristics, the study tests for popular theoretical mechanisms of the resource curse and shows that positive oil price shocks magnify conflict through rising competition for resource rents and grievance against foreign firms. No evidence is found in favor of mechanisms related to changes in the opportunity cost of engaging in conflict. |
| Keywords: | Natural resource, Conflict, Firms |
| JEL: | C23 D74 J30 L70 Q34 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:nva:unnvaa:wp04-2018&r=ene |
| By: | Ohad Raveh; Yacov Tsur |
| Abstract: | We identify an adverse consequence of natural resource windfalls, which is particularly detrimental in advanced democracies. We construct a political economy model with endogenous public debt under exogenous resource windfall shocks, in which political myopia results from reelection prospects. Reelection-seeking politicians, while more accountable toward their electorate, are also more myopic. The latter effect gives rise to a budget defficit bias, with the ensuing debt build up that is exacerbated by resource windfalls. We find that the positive effect of resource windfalls on debt increases as the restrictions on reelection get laxer. We test the model's predictions using a panel of U.S. states over the period 1963-2007. Our identification strategy rests on constitutionally-entrenched differences in gubernatorial term limits that provide plausibly exogenous cross-sectional and time variation in political time horizon, and geographically-based cross-stated differences in natural endowments interacted with the international prices of oil and gas. The empirical findings corroborate the model's predictions. In particular, our baseline estimates indicate that a resource windfall of $1 induces an increase of approximately g14:7 in the public debt of states with no gubernatorial term limits. |
| Keywords: | Infrastructure; Resource windfalls, public debt, political myopia, reelection |
| JEL: | Q32 H74 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:205&r=ene |
| By: | Ke Wang; Jiayu Wang; Yi-Ming Wei; Chi Zhang |
| Abstract: | Environmentally extended input-output table (EEIOT), a balanced matrix of industrial commodity and environmental resources, is widely used to evaluate environmental policy impacts. However, the existing EEIOTs contain energy consumption and pollution emission but neglect emission abatement cost and benefit. In this study, a novel Chinese emission abatement sector extended input-output table (EAS-IOT) is developed through introducing abatement cost, emission charge and abatement benefit into the conventional input-output table. Furthermore, this new EAS-IOT is applied to estimate the environmental efficiency and assess the effects of environmental policies on economy and environment. Results show that the new framework of EAS-IOT has advantage on solving the problem of biased efficiency estimation related to the conventional input-output table. |
| Keywords: | Data on emission abatement cost and benefit; extended input-output table; emission abatement sector; environmental policy |
| JEL: | Q54 Q40 |
| Date: | 2018–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:biw:wpaper:119&r=ene |
| By: | Alec Brandon; John List; Robert Metcalfe; Michael Price; Florian Rundhammer |
| Abstract: | This study considers the response of household electricity consumption to social nudges during peak load events. Our investigation considers two social nudges. The first targets conservation during peak load events, while the second promotes aggregate conservation. Using data from a natural field experiment with 42,100 households, we find that both social nudges reduce peak load electricity consumption by 2 to 4% when implemented in isolation and by nearly 7% when implemented in combination. These findings suggest an important role for social nudges in the regulation of electricity markets and a limited role for crowd out effects. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:feb:natura:00641&r=ene |
| By: | Hilde Remøy; Vincent Steenkamp; Philip Koppels |
| Abstract: | National governments and local authorities worldwide aim at reducing building related energy consumption and greenhouse gas emissions. To achieve a climate neutral built environment in 2050, the Netherlands must decrease its emissions by 80-95%. This challenge requires an approach that combines governmental means and market approaches. Green building certificates is an instrument that can contribute to accelerate the transition towards a green built environment. An extensive body of knowledge on green building certificates already exists and covers topics varying from research on drivers and barriers to financial implications for building values and rents.This research builds on prior research on the environmental awareness of corporate real estate organisations, research on drivers for obtaining green building certificates, and financial and reputational effects. There is a lack of insight in the effects of green building certificates on the building value, business performance and capital justification for users, owners and financers of office buildings in use. In comparison with new buildings, certification of buildings in use must comply with the demands of all stakeholders involved. Rents cannot simply be increased after a building is certified because of running contracts between the tenant and building owner. Moreover, it can be questioned if a rent premium is justified as a certificate does not change the physical attributes of the building, neither does it contribute to increase productivity, nor reduce operation costs. This research aims to answer the following question: How do green building certificates affect the building and organisation of tenants, owners and financers of in use office buildings? The main goal of this paper is to identify and explain the effects on the building and organisation of tenants, owners and financiers of office buildings that are certified while already in use. Based on a literature review, theory is developed. The research is conducted using a multi-method research approach that combines semi-structured interviews with case studies and a questionnaire. Finally, findings are compared and evaluated by an expert panel. |
| Keywords: | Building Adaptation; Green Building; Office Buildings; Property Management; Sustainable Building |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_264&r=ene |
| By: | Lixia Yao (Energy Studies Institute, National University of Singapore) |
| Abstract: | The Belt and Road Initiative (BRI hereafter) is an enormous infrastructure initiative first announced by Chinese President Xi Jinping in 2013. It is the largest infrastructure initiative ever. Investment will be directed to roads, railways and ports, as well as energy infrastructure including coal plants, pipelines, transmission lines and renewable energy projects. This study focuses on energy infrastructure investment in Southeast Asia. First it briefly reviews (with data) the current energy security situation and concerns in Southeast Asia; second, it discusses new Chinese investment in energy infrastructure in Southeast Asia since BRI was initiated; third, it analyzes its impact on energy capacity increment and energy infrastructure connection in the region; lastly, the study looks at how the Chinese investment can help or hinder the energy market integration in Southeast Asia and the potential role of Singapore against the context of BRI in Southeast Asia?s energy sector. |
| Keywords: | The Belt and Road Initiative; Southeast Asia; Energy investment |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7809108&r=ene |
| By: | Brown, Jason (Federal Reserve Bank of Kansas City); Maniloff, Peter; Manning, Dale T. |
| Abstract: | We provide theoretical and empirical evidence that firms do not in general respond equally to changes in prices and taxes in the setting of oil well drilling in the United States. Our key theoretical contribution is that in a multi-state model, a change in output price changes both the benefit and opportunity cost of drilling, whereas a change in a state tax rate only changes the benefit of drilling in that state. Thus, a firm responds more to a change in tax than a change in price. Our econometric results support this theoretical prediction. We find that a one dollar per barrel increase in price leads to a 1 percent increase in wells drilled, but a one dollar per barrel increase in tax leads to at least an 8 percent decrease in wells drilled. These estimates correspond to elasticities of about 0.5 and -0.3, respectively. These results are robust to interstate spillovers, other state regulations, and econometric specification. They imply that using state tax rate decreases to incentivize investment may lead to losses of government revenue. |
| Keywords: | Severance Tax; Drilling; Supply Elasticity |
| JEL: | Q32 Q48 R51 |
| Date: | 2018–09–05 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedkrw:rwp18-07&r=ene |
| By: | Sven Bienert; Joseph-Alexander Zeitler; Paloma Taltavull de La Paz |
| Abstract: | Most of the European rental housing units need major refurbishments in upcoming years to achieve EU climate protection goals. Because property owners still find it difficult to assess the profitability of energetic retrofitting investments, current renovation levels are far too low. This study contributes to the situation by forming a standardized framework and a tool for calculating the profitability of energy efficiency investments throughout Europe. Findings are based on conducted target group surveys and on a profound literature review. Several relevant areas for energy efficiency investments have been screened, including technical, legal, institutional and financial conditions. It is found that especially market conditions and information deficits harm energy efficiency investments. In line with inflexible regulations, this reduces market incentives that have originally been introduced to trigger market participants. Built on these findings, an online-based tool has been developed to support the decision-making process of each individual investor, regardless the individual knowledge on energy efficiency. The VoFI (Visualization of Financial Implication) method perfectly includes all important and relevant factors, such as financial and tax-related information. As a special technique of financial modelling, it provides all kinds of users with sound decision support in energetic retrofitting activities. The underlying methodology of the tool is presented and major obstacles are identified. Findings are used to define best practices and to assess the transferability between different European markets. The paper contributes to a better understanding on how to tackle information deficits and on implementing sufficient policies to boost energy efficiency investments. |
| Keywords: | Energetic retrofitting; Financial feasibility; Green premium; Refurbishment activity |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_225&r=ene |
| By: | - |
| Abstract: | El informe nacional de monitoreo de la eficiencia energética de Honduras fue preparado como parte de las actividades llevadas a cabo en el marco del programa Bases de Indicadores de Eficiencia Energética (BIEE), coordinado por la CEPAL con la contribución de la Agencia Alemana para la Cooperación Internacional (GIZ) y el apoyo técnico de la Agencia Francesa del Medio Ambiente y la Gestión de la Energía (ADEME). Este informe analiza las tendencias de la eficiencia energética y el consumo de energía para los sectores industrial, transporte, servicios, residencial y agropecuario en Honduras. Los indicadores propuestos por el programa BIEE constituyen una herramienta útil para el monitoreo de los programas y el análisis de políticas de eficiencia energética. |
| Keywords: | RECURSOS ENERGETICOS, CONSUMO DE ENERGIA, RENDIMIENTO ENERGETICO, HIDROCARBUROS, ENERGIA ELECTRICA, INDUSTRIA, TRANSPORTE, VIVIENDA, COMERCIO DE SERVICIOS, AGRICULTURA, PESCA, ESTADISTICAS DE ENERGIA, ENERGY RESOURCES, ENERGY CONSUMPTION, ENERGY EFFICIENCY, HYDROCARBONS, ELECTRIC POWER, INDUSTRY, TRANSPORT, HOUSING, TRADE IN SERVICES, AGRICULTURE, FISHING, ENERGY STATISTICS |
| Date: | 2018–08–27 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:43983&r=ene |
| By: | Rick van der Ploeg; Armon Rezai |
| Abstract: | With the election of President Trump, climate deniers moved from the fringes to the centre of global policy making and need to be addresses in policy-making. An agnostic approach to policy, base don Pascal's wager, gives a key role to subjective prior porbability beliefs about whether climate deniers are right. Policy makers that assign 10% chance of climate deniers being correct set the global price on carbon to $19.1 per ton of emitted CO2 in 2020. Given that a non-denialist scientist making use of the DICE integrated assessment models sets the price at $21.1/tCO2, agnostics' reflection of remaining scientifc uncertainty leaves climatepolicy essentially unchanged. The robustness of an ambitious climate policy also follows from using the max-min or the min-max regret principle. Letting hte coefficient of relative ambiguity aversion vary from zero corresponding to expected utility analysis to infinity corresponding to the max-min principle, it is possible to show how policy makers dela with findamental climate model uncertainty when they are prepared to assign prior probabilities to differnet views of the works being correct. Allowing for a wide range of sensitivity exercised including damage uncertainty, it turns out that pricing carbon is the robust response under rising climate scepticism. |
| Keywords: | climate model uncertainty, climate scepticism, robust climate policies, max-min, min-max regret, ambiguity aversion, DICE integrated assessment model |
| JEL: | H21 Q51 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:202&r=ene |
| By: | Roland Hodler; Anna Bruderle |
| Abstract: | Oil spills can lead to irreversible environmental degradation and pose hazards to human health. We are the first to study the causal effects of onshore oil spills on neonatal and infant mortality rates. We use spatial data from the Nigerian Oil Spill Monitor and the Demographic and Health Surveys, and rely on the comparison of siblings conceived before and after nearby oil spills. We find that nearby oil spills double the neonatal mortality rate. These effects are fairly uniform across locations and socio-economic backgrounds. We also provide some evidence for negative health effects of nearby oil spills on surviving children. |
| Keywords: | oil spills, Nigeria, infant mortality, child health |
| JEL: | I10 I18 J13 Q53 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:196&r=ene |
| By: | Pallavi Kishore (Middlesex University Dubai); Mariam Aslam (Middlesex University Dubai) |
| Abstract: | The sharp decline in oil prices that started in 2014 affected most economies in the world either positively or negatively. United Arab Emirates has been striving to diversify away from oil and expects higher non-oil growth in 2018. This study involves calculations and comparisons of ratios pre and post the fall in oil prices in the insurance sector in the UAE. Parametric tests, conclude that while the change in profitability and efficiency ratios is statistically significant, the other ratios have been quite stable in the period. There has been an overall slowdown in the insurance industry yet UAE has been mostly resilient to the fall in oil prices and given the visionary leadership of its policy makers, the diversification strategy has taken effect rather quickly. |
| Keywords: | Insurance Sector, Oil prices, Parametric test, Profitability, Ratio analysis, United Arab Emirates |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7809821&r=ene |
| By: | Yewande Adewunmi; Anthony Alister; Phooko Bopape; Nokukhanya Thabethe |
| Abstract: | The study looked at different energy efficiency practices specifically within the facilities management sector and ascertained barriers to adopting energy efficient strategies, it further explored the factors that promote the employment of energy efficient practices. This data was gathered from a purposive sample of 50 facilities professionals through an online survey. Energy efficient lighting and equipment are mostly used energy efficiency practices. It further uncovered that occupant engagement and education is considered least, amongst current energy efficiency practices. This study revealed that the biggest barrier to the implementation of energy efficient facilities management practices is the cost implication of adopting FM strategies and rated the lowest were policies and regulations of energy efficiency standards. Cost reduction is the highest rated factor that promotes energy efficiency practices. This study recommends that businesses disregard the initial financial implications of adopting energy efficient strategies in light of the long term benefits and to engage with end users as this could also lead to better facilities management with the information they provide. This study also suggests that awareness of some practices can also improve facilities management practices in the Johannesburg area. |
| Keywords: | Cost Reduction; Energy Efficiency; Facilities Management; Organisations; South Africa |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_23&r=ene |
| By: | Luká? Re?ný (University of Hradec Králové) |
| Abstract: | Presentation deals with the expansion of the Neoclassical model of economic growth with the energy sector. Firstly, the current problems presented by declining quality and limited quantity of the fossil fuels together with the properties of the new renewable energy sources are presented within the framework of EROEI (Energy Returned On Energy Invested). Next, the relationship between economic growth and energy consumption is introduced. Follows a brief description of the used modelling method, system dynamics and its advantages for an extension and analysis of economic models. The main content of this contribution is the description of the proposed expansion of the Neoclassical model of economic growth with the energy sector. The impact of the varied quality of renewable energy sources (EROEI) on the future economic performance is being studied with the use of sensitivity analysis within the proposed model which covers the time period of 1965-2065. |
| Keywords: | Neoclassical model of economic growth; Energy sector; EROEI; System Dynamics |
| JEL: | O44 Q01 Q40 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iacpro:7809561&r=ene |
| By: | Gerhard Toews; Pierre-Louis Vezina |
| Abstract: | This paper examines the effect of giant oil and gas discoveries on foreign direct investment in developing economies. Across countries, we document a 58% increase in non-resource extraction FDI in the 2 years following a giant discovery, an event which is unpredictable due to the uncertainty of exploration. This effect is driven by a 30% increase in the number of projects and a 16% increase in targeted sectors. Mozambique's recent FDI boom provides a telling confirmation of this mechanism. Using project-level FDI data combined with multiple waves of household surveys and rm censuses we estimate that each FDI job results in 6.2 additional local jobs, linking the gas-driven FDI bonanza in Mozambique to widespread job creation. |
| Keywords: | Natural resources, investment, local multiplier |
| JEL: | F21 F23 Q32 Q33 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:199&r=ene |
| By: | Shiferaw, Y. |
| Abstract: | The core objective of this paper is to examine the relationship between the prices of agricultural commodities with the oil price, gas price, coal price and exchange rate (USD/Rand). In addition, the paper tries to fit an appropriate model that best describes the log return price volatility and estimate Value-at- Risk (VaR). The data used in this study are the daily returns of agricultural commodity prices from 02 January 2007 to 31st October 2016. The paper applies the three-state Markov-switching (MS) regression, the standard single-regime GARCH, and the Markov-switching GARCH (MS-GARCH) models. To choose the best fit model, the log-likelihood function, Akaike information criterion (AIC), Bayesian information criterion (BIC) and deviance information criterion (DIC) are employed under different distributions for innovations. The results indicate that the price of agricultural commodities was found to be significantly associated with the price of coal, the price of natural gas, price of oil and exchange rate. Moreover, for most of the agricultural commodities considered in this paper, the MS-GARCH models under the MCMC approach outperformed the standard single regime GARCH models in measuring VaR. In conclusion, this paper provided a practical guide for modelling agricultural commodity prices by MS regression and MSGARCH processes. |
| Keywords: | Agricultural and Food Policy, International Development |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:275991&r=ene |
| By: | Puja Singhal |
| Abstract: | Policy makers have long favored command-and-control (CAC) methods to tackle environmental damage. The number of CAC policies devoted to environmental protection has increased steadily since the 1950s and have been a large part of the overall portfolio of environmental laws andregulation in the industrialized world. Schmitt and Schulze (2011) document that between 1970 and 2011 the two most prevalent EU air-pollution control instruments were CAC in nature. Over 50% of the policy instruments were of the CAC type (regulatory, interventionist, and top-down), with emission limits and technical requirements playing the role of the top two. In China and India, most of the environmental legislation also take the form of explicit directives that levy restrictions on both mobile (vehicular) and stationary sources (factories and combustion plants) of pollution (see Tanaka 2014, Greenstone and Hanna 2014).In the last two decades, there has been a notable increase in research evaluating policy and programs for environmental protection. The design of empirical studies emphasizes causal inference by comparing group of regulated (treated) firms with a comparable control group of firms that were not subject to the treatment. As a result, we now have an improved perspective on the causal effects of environmental policy instruments that address industrial pollution. This review discusses some of the implementation details of prominent CAC type regulations and highlights the lessons learned from the empirical evaluation of these initiatives. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwrup:124en&r=ene |
| By: | Csonka, Steve |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2017–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao17:260559&r=ene |
| By: | Rick van der Ploeg; Aart de Zeeuw |
| Abstract: | The optimal reaction to a potential productivity shock as a consequence of climate tipping is to substantially tax carbon in order to curb the risk of tipping, but to adjust capital as well in order to smooth consumption when tipping occurs. We also allow for conventional marginal climate damages and decompose the optimal carbon tax in two catastrophe components and the conventional component. We distinguish constant and increasing marginal hazards. Moreover, the productivity catastrophe is compared with recoverable catastrophes and with a shock to the climate sensitivity. Finally, we allow for investments in adaptation capital as an alternative to counter the potential adverse effects of climate tipping. Quantitatively, the results are investigated with a calibrated model for the world economy. |
| Keywords: | Infrastructure; climate tipping point, risk, social cost of carbon, precautionary capital, economic growth |
| JEL: | D81 H20 O40 Q31 Q38 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:207&r=ene |
| By: | Andersson, Fredrik N.G. (Department of Economics, Lund University) |
| Abstract: | This paper considers the potential inflation effects of a global carbon price on consumer prices, investment prices, export prices, and import prices. We estimate the effects under three different scenarios. The results clearly indicate that the inflation effects in developed countries of a 100 USD/ton carbon price are small. For developing countries, the inflation effect is larger and potentially too large for it to be politically feasible to introduce a global carbon price. However, a simple adjustment of the price based on the price level in each country equalizes the inflation effects across all countries, whereby a global carbon price is more likely to be implemented. |
| Keywords: | carbon price; inflation; consumer prices; export prices; imports prices; investment prices; monetary policy |
| JEL: | E31 E52 Q54 Q58 |
| Date: | 2018–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2018_022&r=ene |
| By: | Andrée De Serres; José Nadège Dongmo; Hélène Sicotte; Elia Duchesne |
| Abstract: | Improving the energy efficiency in buildings is an important element of Canada’s federal and provincial energy policy. In Quebec, commercial and institutional property owners and managers are currently going through unprecedented governance, technological and managerial transformation. Many energy management systems and guides are proposed to provide organizations with a framework to improve energy management such that it can increase energy efficiency, reduce costs, improve the building’s energy performance while at the same time reducing greenhouse gas emissions. However, many questions persist, such as: how can energy management be integrated into the core organizational management and strategy of an organization? What specific energy management processes can be implemented in an organization? How can the energy function be added into the general building management system?The aims of this research were: to identify and analyze exemplary energy management practices associated with the implementation of energy management programs by the owners or managers of Quebec’s commercial and institutional buildings; to identify and produce five case studies describing the process of implementing an energy management program in building in Quebec. To achieve these aims, we started our research with a review of contemporary approaches for managing energy and a review of published literature. The theoretical framework for this study is the process studies of change in organization and management. We were inspired by the process for explaining development and change in organizations recommended by Van de Ven, A. and Poole S. (1995) and the process for studying organisational change and development recommended by Pettigrew, A., Woodman, R., & Cameron, K. (2001). Our paper differs from current studies as we applied the methodology of case studies research (Yin, 2013) with many sources of evidence. It is an opportunity for Quebec’s government as well as for the building owners and managers to learn from case examples, to better understand how to overcome energy management barriers, how to better capture benefits and identify or adopt new energy management practices in order to improve their current energy management system. Finally, this research provides guidelines for building managers in implementing energy management in a context where the improvement of energy efficiency is important but the energy cost is inexpensive and renewable. |
| Keywords: | Building Management; case study; energy management; organizational change; Sustainability |
| JEL: | R3 |
| Date: | 2018–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2018_247&r=ene |
| By: | Viccaro, Mauro; Rocchi, Benedetto; Cozzi, Mario; Egging, Rudolf G.; Perez-Valdes, Gerardo A.; Romano, Severino |
| Abstract: | The development of bioenergy, as a new business model integrated with environment and territory, may be a valuable opportunity for farmers with positive effects both in socio-economic and environmental terms. However, largescale biomass plantations might increase pressure on the productive land and might cause a substantial increase of food prices. The main goal of the current study is to support the policy decision making in the renewable energy sector by quantitatively assessing impacts of alternative policy instruments at the sub-state regional level. The scenario analysis is performed using a multi-regional multi-sector Computable General Equilibrium (CGE) model applied to Basilicata region, Southern Italy, with, given the importance of agriculture in the area, a great deal attention on agricultural production level, food prices and land competition. Results shows that promoting bioenergy sector do not generate negative impact on food price, land use and welfare, supporting the continuation of policies to incentive the bioenergy sector, combining tax policies with other policy tools (e.g. agricultural or climate policies) in order to make the sector more competitive. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2017–08–28 |
| URL: | http://d.repec.org/n?u=RePEc:ags:eaae17:261158&r=ene |
| By: | Rainey, John |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2017–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao17:260525&r=ene |
| By: | Josselin Garnier; Knut Solna |
| Abstract: | Oil price data have a complicated multi-scale structure that may vary with time. We use time-frequency analysis to identify the main features of these variations and, in particular, the regime shifts. The analysis is based on a wavelet-based decomposition and analysis of the associated scale spectrum. The joint estimation of the local Hurst exponent and volatility is the key to detect and identify regime shifting and switching of the oil price. The framework involves in particular modeling in terms of a process of `multi-fractional' type so that both the roughness and the volatility of the price process may vary with time. Special epochs then emerge as a result of these degrees of freedom, moreover, as a result of the special type of spectral estimator used. These special epochs are discussed and related to historical events. Some of them are not detected by standard analysis based on maximum likelihood estimation. The paper presents a novel algorithm for robust detection of such special epochs and multi-fractional behavior in financial or other types of data. In the financial context insight about such behavior of the asset price is important to evaluate financial contracts involving the asset. |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1808.09382&r=ene |