nep-ene New Economics Papers
on Energy Economics
Issue of 2019‒02‒04
thirty papers chosen by
Roger Fouquet
London School of Economics

  1. Comparing the life-cycle CO2 emissions of the best-selling electric and internal combustion engine cars in Italy By Danielis, Romeo; Giansoldati, Marco; Scorrano, Mariangela
  2. The impact of a Carbon Tax on the CO2 emissions reduction of wind By Chyong, C-K.; Guo, B.; Newbery, D.
  3. Global economic and environmental outcomes of the Paris Agreement By Weifeng Liu; Warwick McKibbin; Adele Morris; Peter J Wilcoxen
  4. Incentivizing smart charging: Modeling charging tariffs for electric vehicles in German and French electricity markets By Ensslen, Axel; Ringler, Philipp; Dörr, Lasse; Jochem, Patrick; Zimmermann, Florian; Fichtner, Wolf
  5. Energy Transition with Variable and Intermittent Renewable Electricity Generation By Aude Pommeret; Katheline Schubert
  6. Measuring volatility spill-over effects of crude oil prices on Ghana’s exchange rate and stock market between 1991 and 2015 By Zankawah, Mutawakil M.; Stewart, Chris
  7. Ratio Working Paper No. 317: China’s Wind Power Development – An Anatomy of Mishaps By Grafström, Jonas
  8. Central- versus Self-Dispatch in Electricity Markets By Ahlqvist, V.; Holmberg, P; Tangeras, T.
  9. Estimating the impacts of financing support policies towards photovoltaic market in Indonesia: A social-energy-economy-environment (SE3) model simulation By M. Indra al Irsyad; Anthony Halog; Rabindra Nepal
  10. Diversifying Electricity Customer Choice: REVing Up the New York Energy Vision for Polycentric Innovation By Nyangon, Joseph; Byrne, John
  11. Tourist arrivals, energy consumption and pollutant emissions in a developing economy–Implications for sustainable tourism By M. Indra al Irsyad; Rabindra Nepal; Sanjay Kumar Nepal
  12. Relatedness and the Resource Curse - Is there a liability of relatedness? By Rune Dahl Fitjar; Bram Timmermans
  13. Transitional restricted linkage between emissions trading schemes By Quemin, Simon; de Perthius, Christian
  14. Structural Changes and Sustainability. A Selected Review of the Empirical Evidence By Maria Savona; Tommaso Ciarli
  15. Renewable energy price-control policy in the presence of innovation: is government pre-commitment preferable? By Madlener, Reinhard; Neustadt, Ilja
  16. Reducing emissions of the fast growing Vietnamese coal sector: the chances offered by biomass co-firing By An Truong; Piera Patrizio; Sylvain Leduc; Florian Kraxner; Minh Ha-Duong
  17. A meta-analysis of the importance of the driving range in consumers’ preference studies for battery electric vehicles By Danielis, Romeo; Scorrano, Mariangela; Giansoldati, Marco; Rotaris, Lucia
  18. Enhancing Climate Finance Readiness: A Review of Selected Investment Frameworks as Tools of Multilevel Governance By Agbemabiese, Lawrence; Nyangon, Joseph; Lee, Jae-Seung; Byrne, John
  19. La importancia de las etiquetas EPC sobre las preferencias residenciales: un análisis para Barcelona By Marmolejo-Duarte Carlos; García-Ramos Rosa; Encinas-Pino Felipe
  20. Does climate influence households’ thermal comfort decisions? By Enrica De Cian; Filippo Pavanello; Teresa Randazzo; Malcolm Mistry; Marinella Davide
  21. Mercado inmobiliario y construcción sustentable: regulaciones, incentivos y percepción de los consumidores en Brasil y Chile By Felipe Encinas; Carlos Marmolejo; Carlos Aguirre; Nicolás Izquierdo; Javiera Díaz
  23. Autonomous, Connected, Electric Shared vehicles (ACES) and public finance: an explorative analysis By Martin Adler; Stefanie Peer; Tanja Sinozic
  24. Phasing out the U.S. Federal Helium Reserve: Policy insights from a world helium model☆ By Olivier Massol; Omer Rifaat
  25. Oil price and the global conventional and islamic stock markets: Is the relationship symmetric or asymmetric ? evidence from nonlinear ARDL By Adediran, Ibrahim Opeyemi; Masih, Mansur
  26. Inclusive development in enviromental sustainability in Sub-Saharan Africa: Insights from governance mechanisms By Asongu, Simplice A; Odhiambo, Nicholas M
  27. Consumer- and society-oriented cost of ownership of electric and conventional cars in Italy By Danielis, Romeo; Giansoldati, Marco; Scorrano, Mariangela
  28. On a Strategic Model of Pollution Control By Ferrari, Giorgio; Koch, Torben
  29. Acid Rain is a Local Environment Pollution but Global Concern By Mohajan, Haradhan
  30. Ownership Unbundling of Electricity Distribution Networks By Nillesen, P.; Pollitt, M.

  1. By: Danielis, Romeo; Giansoldati, Marco; Scorrano, Mariangela
    Abstract: Introduction. The question of whether battery electric vehicles (BEVs) emit more or less CO2 than Internal Combustion Engine Vehicles (ICEVs) and Hybrid Electric Vehicles (HEVs) along the entire life cycle is still a debated topic in the scientific literature and in the popular press. This paper contributes to the debate by providing an estimate for the best-selling cars in Italy. The methodology. On the basis of the VCA database reporting the CO2 emissions of most of the cars on sale in Italy in 2016, we perform a life-cycle analysis including fuel and electricity production, car\battery manufacturing and disposal, and direct and indirect emissions during the car use. Results. Currently, the BEVs emit 24% less CO2 than gasoline ICEVs, 26% less than diesel ICEVs, and 12% less than HEVs. In 2026 the savings could further increase to 38%, 40% and 24%, respectively, assuming the past trends towards a cleaner electricity mix and no improvement in the conventional and HEVs technologies Conclusion. BEVs should be promoted as an alternative to the ICEVs not only because they reduce air and noise pollution in urban areas but also because they contribute to decrease global CO2 emissions.
    Date: 2019
  2. By: Chyong, C-K.; Guo, B.; Newbery, D.
    Abstract: Energy policy aims to reduce emissions at least long-run cost while ensuring reliability. Their effectiveness depends on the cost of emissions reduced. Britain introduced an additional carbon tax (the Carbon Price Support, CPS) for fuels used to generate electricity that by 2015 added £18/t CO2, dramatically reducing the coal share from 41% in 2013 to 8% in 2018. This paper shows how to estimate CO2 reductions, arguing that policies have both short and long-run impacts. Both need to be estimated and combined to measure carbon savings. The paper shows how to measure the Marginal Displacement Factor (MDF, tonnes CO2 /MWh) for wind. The short-run MDF is estimated econometrically while the long-run MDF is calculated from a unit commitment model of the GB system in 2015. We examine counter-factual fuel and carbon price scenarios. The CPS lowered the short-run MDF by 7% in 2015 but raised the long-run MDF (for a 25% increase in wind capacity) by 33%. The CPS raised the 2016 wholesale price by £6.22/MWh with impacts on interconnector trade.
    Keywords: Wind, marginal displacement factors, carbon pricing, fuel mix, unit commitment model, econometrics
    JEL: H23 L94 Q48 Q54
    Date: 2019–01–09
  3. By: Weifeng Liu; Warwick McKibbin; Adele Morris; Peter J Wilcoxen
    Abstract: In this paper, we use a multi-region model of the world economy to analyze the economic and environmental outcomes that are likely to result from Paris Climate Agreement. To construct the modeling scenario, we convert the disparate emission targets for each country or region in their Nationally Determined Contributions (NDC) formulations into estimated reductions in CO2 emissions relative to a baseline scenario with no new climate policies. We then solve for the tax rate path on CO2 in each region that achieves the NDC-consistent emissions reductions in the target year, 2030 for most regions. We find that if all regions achieve their NDCs, the Paris Agreement significantly reduces CO2 emissions relative to baseline. However, the Paris policy scenario suggests that global CO2 emissions would not decline in absolute terms relative to 2015 levels, let alone follow a path consistent with a 2°C stabilization scenario. Comparing projected 2030 CO2 tax rates to the same year’s percent emissions abatement relative to baseline, we find that declines in CO2 emissions do not necessarily correlate with the CO2 tax rate. We find the climate policies result in significant macroeconomic spillovers across the global economy, meaning that macroeconomic outcomes across countries depend not only on their own commitments but also on those of the rest of the world. We also explore how outcomes could change if select countries (United States, China and Australia) unilaterally withdraw from the agreement and undertake no new climate policies. We find that non-participation leads to economic gains (in terms of GDP) for these countries relative to participating, illustrating the challenge of forging an international agreement with participation by all major emitters and fossil fuel producers. However, we also find that if we account for the monetized climate and domestic cobenefits of emissions reductions, those countries, including Australia, are worse off if they unilaterally withdraw from the Paris Agreement than if they participate. Thus, although we find there are gross costs to participating, doing so generates net benefits for the individual country participants.
    Keywords: climate change, Paris Climate Agreement, global macroeconomic modeling, G-Cubed, carbon taxes
    JEL: C54 F17 F41 F47 Q43 Q54
    Date: 2019–01
  4. By: Ensslen, Axel; Ringler, Philipp; Dörr, Lasse; Jochem, Patrick; Zimmermann, Florian; Fichtner, Wolf
    Abstract: Over the past few years, registration figures of plug-in electric vehicles have increased rapidly in industrialized countries. This could cause considerable mid- to long-term effects on electricity markets. To tackle potential challenges specific to electric power systems, we develop a load-shift-incentivizing electricity tariff that is suitable for electric vehicle users and analyze the tariff scheme in three parts. First, acceptance is analyzed based on surveys conducted among fleet managers and electric vehicle users. Corresponding results are used to calibrate the tariff. Secondly, load flexibilities of electric vehicle charging are used in an agent-based electricity market simulation model of the French and German wholesale electricity markets to simulate corresponding market impacts. Thirdly, the charging manager’s (‘aggregator’) business model is analyzed. Our results reveal that the tariff is highly suitable for incentivizing vehicle users to provide load flexibilities, which consequently increase the contribution margins of the charging managers. The main drawback is the potential for ‘avalanche effects’ on wholesale electricity markets increasing charging mangers’ expenditures, especially in France.
    Keywords: E-Mobility Electric vehicles Controlled charging Electricity markets
    JEL: O33 R42
    Date: 2018–02–20
  5. By: Aude Pommeret; Katheline Schubert
    Abstract: We propose one of the first dynamic models of the optimal transition from fossil fuels to renewables in electricity generation that takes into account the variability and intermittency of renewable energy as well as storage. This work sheds light on the extent to which variability and intermittency constitute a serious obstacle to energy transition and, given these constraints, the value of storage. The results of this model provide useful insight into the complexity of transitioning to a clean energy mix, as well as the role climate policy can play in facilitating both the growth of renewables and storage.
    JEL: Q42 Q54
    Date: 2019
  6. By: Zankawah, Mutawakil M. (Kingston University London); Stewart, Chris (Kingston University London)
    Abstract: This paper examines the shock spill-over and volatility spill-over effects from crude oil prices to the Ghana exchange rate and the Ghana stock market index. We employ the multivariate GARCH BEKK and TBEKK models using monthly data from January 1991 to December 2015. We address two central issues. First, whether crude oil price movements affect the Ghana exchange rate and the Ghana stock market. Second, whether the crude oil price effect depends on the treatment of crude oil prices as exogenous or endogenous. Our findings indicate that world crude oil prices have significant spill-over effects on the exchange rate, and this result is unaffected by the treatment of world crude oil prices as exogenous or endogenous. However, the relationship between crude oil prices and the Ghana stock market depends on whether the crude oil price is exogenous or endogenous. The implication of these results is that internationally diversified portfolio investors in Ghana should use hedging strategies such as currency forwards, futures, and options to protect their investments from exchange rate risk emanating from oil price shocks. The government should also encourage the use of renewable energy such as solar to help reduce the country’s dependence on oil.
    Keywords: Ghana; exchange rate; stock markets; oil prices; exogeneity; shock and volatility spill-overs; system GARCH-TBEKK model.
    JEL: C32 F31 F41
    Date: 2019–01–08
  7. By: Grafström, Jonas (The Ratio Institute)
    Abstract: China has in recent decades expanded its wind power generation capacity and become the world leader. Still, despite robust government support, wind power in China is obstructed by various barriers (e.g. quality deficiencies, inability to export, missing grid connections, and permit delays from central government for grid construction etc.). This paper synthesises the literature that has discovered weaknesses in the Chinese wind power development and suggests improvements. One energy policy relevant observation is that when the Chinese government sets command-and-control construction targets over new installed capacity, actors delivered to target – but with several power plants without grid connectivity and severe quality problems. The article contributes to the academic debate over the role of policy making in renewable energy development and argues that China should improve their incentive structure and coordination of regulations.
    Keywords: China; Wind power; Generation; Policy; Energy; Innovation
    JEL: O11 O21 O53
    Date: 2019–01–24
  8. By: Ahlqvist, V.; Holmberg, P; Tangeras, T.
    Abstract: In centralized markets, producers submit detailed cost data to the dayahead market, and the market operator decides how much should be produced in each plant. This differs from decentralized markets that rely on self-commitment and where producers send less detailed cost information to the operator of the day-ahead market. Ideally centralized electricity markets would be more effective, as they consider more detailed information, such as start-up costs and no-load costs. On the other hand, the bidding format is rather simplified and does not allow producers to express all details in their costs. Moreover, due to uplift payments, producers have incentives to exaggerate their costs. As of today, US has centralized wholesale electricity markets, while most of Europe has decentralized wholesale electricity markets. The main problem with centralized markets in US is that they do not provide intra-day prices which can be used to continuously up-date the dispatch when the forecast for renewable output changes. Intra-day markets are more flexible and better adapted to deal with renewable power in decentralized markets. Iterative intra-day trading in a decentralized market can also be used to sort out coordination problems related to non-convexities in the production. The downside of this is that increased possibilities to coordinate increase the risk of getting collusive outcomes. Decentralized day-ahead markets in Europe can mainly be improved by considering network constraints in more detail.
    Keywords: wholesale electricity markets, market clearing, centralization, decentralization, unit-commitment, self-dispatch
    JEL: D44 L13 L94
    Date: 2019–01–18
  9. By: M. Indra al Irsyad; Anthony Halog; Rabindra Nepal
    Abstract: This study estimates the impacts of four solar energy policy interventions on the photovoltaic (PV) market potential, government expenditure, economic growth, and the environment. An agent-based model is developed to capture the specific economic and institutional features of developing economies, citing Indonesia as a specific case study. We undertake a novel approach to energy modelling by combining energy system analysis, input-output analysis, life-cycle analysis, and socio-economic analysis to obtain a comprehensive and integrated impact assessment. Our results, after sensitivity analysis, call for abolishing the existing PV grant policy in the Indonesian rural electrification programs. The government, instead, should encourage the PV industry to improve production efficiency and to provide after-sales service. A 100-watt peak (Wp) PV under this policy is affordable for 33.2 percent of rural households without electricity access in 2010. Rural PV market size potentially increases to 82.4 percent with rural financing institutions lending 70 percent of capital cost for five years at 12 percent annual interest rate. Additional 30 percent capital subsidy and 5 percent interest subsidy slightly increase the rural PV market potential to 89.6 percent of PV adopters. However, the subsidies are crucial for creating PV demands by urban households but the most effective policy for promoting PV to urban households is the net metering scheme. Several policy proposals are discussed in response to these findings.
    Keywords: hybrid energy model, developing country, renewables policy, impact assessments, agent-based modelling, photovoltaic system
    JEL: C60 Q21 Q43 Q48
    Date: 2019–01
  10. By: Nyangon, Joseph; Byrne, John
    Abstract: Electric utility business models are changing to integrate new technologies and distributed energy resources (DER). Diversifying energy mix and customer choices are both novel and useful in understanding key drivers of this transformation, including distribution system planning and customer-service options. Practical implementation of these solutions, how- ever, shows that without proper planning, energy diversiication could come at very high social and economic costs. For example, regulators have been slow in implementing policy, regulatory, and business model constructs that promote customer choice to animate high levels of grid reliability and resiliency. Equally important is how viable existing utility business models are to navigating transformation processes, including strategic resource management, revenue model, customer interface, and value propositions. This chapter discusses our use of the Hamel business model to ofer strategic analysis of Reforming the Energy Vision (REV), which is aimed at decarbonizing New York’s energy sector and increasing customer choice and control. Speciically, we build from existing literature to argue that implementing distribution management systems (DMS) in which customer choice and DERs are prominent requires a shared or ‘polycentric,’ networked business- model innovations that build on competitive and comparative advantages of existing institutions to meet the growing demand for electricity services and utility strategic goals.
    Keywords: reforming the energy vision, distributed energy resources, business model, polycentric innovation, utility choice management, Hamel framework
    JEL: K23 O31 O33 P48 R11 R28
    Date: 2018–09–09
  11. By: M. Indra al Irsyad; Rabindra Nepal; Sanjay Kumar Nepal
    Abstract: Sustainable tourism management policies should aim at maximising economic benefits from tourist arrivals while minimizing associated adverse impacts on the environment. This study assesses the short-run and long-run relationships between tourist arrivals, per capita economic output, emissions, energy consumption and capital formation, citing Nepal as a specific case study. We developed four hypotheses and tested them using time-series econometrics based on the autoregressive distributed lag model and Granger causality tests. The results provide strong evidence of an economy driven tourism sector where expansion in economic output leads to expansion in tourist arrivals. More tourist arrivals, in turn, generate positive impacts on gross capital formation. Energy consumption negatively affects tourist arrivals, calling for increased attention towards improving energy efficiency and energy diversity. We conclude that national policies to increase tourist arrivals should be integrated with national energy and environmental policies in order to facilitate the transition towards a sustainable tourism sector.
    Keywords: sustainable tourism, Autoregressive distributed lag (ARDL), Granger causality, energy consumption, climate change
    JEL: C32
    Date: 2019–01
  12. By: Rune Dahl Fitjar; Bram Timmermans
    Abstract: The literature on relatedness emphasizes the benefits of co-location with related industries, as knowledge spillovers promote innovation and regional branching. However, resource competition between industries which rely on related capabilities has not largely been considered. The resource curse literature argues that resource competition produces adverse effects for other industries when extractive industries expand. However, this literature has not considered whether this depends on the relatedness between the resource industry and these other industries. This paper brings together these two strands of literature. We examine the relationship between the oil and gas industry in Norway and its related industries during a period of rising oil prices and an expansion of the oil and gas industries. We conduct the analysis at the national scale, as well as in the most oil-specialised region of Stavanger, in order to examine how these dynamics play out at a regional, as well as national level. An analysis of the labor flow between the petroleum and related industries using a Norwegian linked employer-employee database reveals that higher wages increase the likelihood of moving from related industries into petroleum, but reduce the likelihood of moving in the opposite direction. The petroleum industry recruits the most productive workers from related industries and returns its least productive workers. Consequently, we argue that relatedness is not an even playing field: There may be losers, as well as winners, from relatedness.
    Keywords: Relatedness, resource curse, petroleum, labour mobility, Norway
    JEL: R11
    Date: 2019–01
  13. By: Quemin, Simon; de Perthius, Christian
    Abstract: Linkages between Emissions Trading Systems are deemed an important element of the future climate policy landscape. They are, however, difficult to agree and remain few and far between. Temporary restrictions on permit trading have potential to facilitate and gradually approach unrestricted, full linkage. We compare the relative merits of several link restrictions in this respect, namely quantitative transfer limits, border taxes on transfers, exchange and discount rates, and unilateral linkage. To this end, we develop a simple model to have a unifying framework which, in conjunction with lessons we draw from realworld experiences, serves as a basis for a broader, policy-oriented discussion. While quantitative restrictions seem to be the natural route to full linkage, they can lead to uncertain distributional effects and weaken price signals. These aspects are mitigated under a border permit tax, but this policy seems harder to implement. Exchange rates have potential to adjust for programmes’ stringencies and raise ambition over time, but can be challenging to select. As experience corroborates, unilateral linkage can be a convenient approach.
    Keywords: climate change policy; emissions trading; linkage; restrictions on permit trading
    JEL: F15 H23 Q58
    Date: 2018–12–09
  14. By: Maria Savona (SPRU, University of Sussex, UK); Tommaso Ciarli (SPRU, Univeristy of Sussex, UK)
    Abstract: The paper offers a review of selected topics in the empirical literature on structural change and sustainability. We focus on aspects of structural change that directly affect emissions and energy intensity: changes of the sectoral composition of economies, trade and international fragmentation of production, technological change and innovation, and demand. We identify several empirical facts. First, only a few countries have experienced a decoupling between growth and emissions, due to proportionately faster growth rather than greater energy efficiency. Second, the long-term shift from manufacturing to services has not led, in all cases, to the de-materialisation of economies and a lower environmental burden. Exploitation of energy efficiency increases depends on the ability of the service sectors to incorporate technical changes to reduce energy intensity. Third, global trade and energy and emissions intensity trends support the pollution haven hypothesis, which predicts displacement of the environmental burden from developed to emerging countries. The pursuit by developing countries of a long-term strategy of trading jobs for emissions is likely to exacerbate the asymmetry related to emissions intensities between developed and less developed economies. The review should inform debate on environmental policy within the broader context of innovation and development policies. Classification-JEL; O3; O44; Q55
    Keywords: Structural change; sustainable development; tertiarisation; de-materialisation; pollution haven hypothesis
    Date: 2019–01
  15. By: Madlener, Reinhard; Neustadt, Ilja
    Abstract: In a perfectly competitive market with a possibility of technological innovation we analyze guaranteed feed-in tariffs for electricity from renewables from a dynamic efficiency and social welfare point of view. Specifically, we model decisions about the technological innovation with convex costs within the framework of a game-theoretic model, and discuss implications for optimal policy design under different assumptions regarding regulatory pre-commitment. We find that in terms of dynamic efficiency no pre-commitment policies are shown to be at least as good as the pre-commitment ones. Thus, a government with a preference for innovation being performed if the achievable cost reduction is high should be in favor of the no pre-commitment regime.
    Keywords: Renewable electricity; Feed-in tariffs; Regulatory pre-commitment; Innovation; Energy policy
    JEL: Q42 Q48
    Date: 2018–10–01
  16. By: An Truong (CleanED - Clean Energy and Sustainable Development Lab - USTH - University of sciences and technologies of hanoi); Piera Patrizio; Sylvain Leduc (IIASA - International Institute for Applied Systems Analysis); Florian Kraxner (IIASA - International Institute for Applied Systems Analysis); Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Vietnam's Power Development Plan 7A authorized many new coal power plants projects, implying an increase of greenhouse gases emissions from 90 MtCO2eq/year today to 360 MtCO2eq/year in 2030. How could co-firing technology-that is the partial substitution of coal by biomass-contributes to mitigate that problem? In this study, we assess the costs and potentials of co-firing rice residues in present and planned coal power plants in Vietnam using a spatially explicit optimization model: BeWhere, adapted as recursive annual dynamic. We found that, the cost of CO2 emissions is the key parameter determining at what level the technology is used. A cost of CO2 emissions of 8 $/tCO2 mobilizes the maximum technical potential of the rice straw and husk domestic resource, with an annual emission reduction of 28 MtCO2eq/year by 2030. At this level, biomass co-firing contributes to an 8% emission reduction in the coal power sector with the abatement cost of 137 Million USD.
    Keywords: spatial explicit exploration,greenhouse gas emissions,Co-firing,emission reduction,bioenergy,rice residues
    Date: 2019–01–08
  17. By: Danielis, Romeo; Scorrano, Mariangela; Giansoldati, Marco; Rotaris, Lucia
    Abstract: We perform a meta-analysis of the studies that evaluate the importance attributed by the consumers to the driving range of the Battery Electric Vehicles (BEVs). The paper updates and extends the paper by Dimitropoulos et al. (2013), including primary studies up to the year 2018. It tests whether the conclusions drawn by Dimitropoulos et al. (2013) still hold true given the many changes that occurred in the last years concerning BEVS’ uptake in the market, growing consumers’ direct and indirect experience with electric cars, vehicles’ increased range, and growing diffusion of the charging infrastructure. We carried out two analyses: a) the estimation of the summary effect size of the driving range utility coefficient, and b) a meta-regression of the willingness to pay for a 1-km increase in the BEVs’ driving range. The main findings are that: a) the importance attributed to the BEV’s range by the consumers has not decreased; b) there is a very large dispersion of the estimates around the mean values, implying that there is a large heterogeneity due to differences in respondents’ needs, vehicle segments and modelling techniques. The meta-regression allowed us to further explore and test statistically these conclusions.
    Date: 2019
  18. By: Agbemabiese, Lawrence; Nyangon, Joseph; Lee, Jae-Seung; Byrne, John
    Abstract: The International Renewable Energy Agency (IRENA) has estimated that to reduce greenhouse gas emissions and limit global mean temperature rise to well below 2° Celsius, new forms of low-carbon investment must be unlocked and cost-effectively doubled by 2030. This level of deployment of low-carbon solutions require doubling current investment in renewable energy to US$500 billion per year up to 2020 and tripling in the 2020s to reach US$900 billion each year up to 2030. However, the mechanisms for scaling up such investments remain constrained by high transaction costs, insufficient investment size, and limited market liquidity. We explore recent development of climate investment readiness frameworks (CIRFs) and their application in support of low-carbon development strategies. The paper focuses on two objectives driving the creation and use of such frameworks: (a) barriers to attracting large-scale private investment in climate-sensitive technologies, and (b) how these barriers can be reduced through effective capacity building mechanisms. We consider the utility of the main investment readiness (IR) frameworks with a particular focus on their contributions to developing a climate investment-friendly policy regime through appropriate governance reforms and technical capacity building measures. Important connections between the performance of climate investment readiness frameworks and broader governance issues are highlighted. Conclusions for strengthening such frameworks as tools of multilevel governance regimes are offered.
    Keywords: Climate investment readiness, Renewable energy, Climate finance, Investability, International finance institutions, Public policy
    JEL: O3 Q43 Q54 Q56 Q57
    Date: 2018–01–01
  19. By: Marmolejo-Duarte Carlos; García-Ramos Rosa; Encinas-Pino Felipe
    Abstract: En España la Directiva Europea de Eficiencia Energética se ha traspuesto con retraso y ha coincidido de pleno con la crisis inmobiliaria. Por tanto, el análisis de las preferencias de los hogares en relación a la eficiencia energética medida a través de las energy performance certificates es difícil. Para salvar este escollo, en este trabajo utilizamos métodos afiliados a las preferencias declaradas para analizar hasta qué punto la eficiencia energética constituye un atributo relevante en la elección residencial. Los resultados sugieren que si los hogares son informados sobre las repercusiones económicas y ambientales en unidades ilustrativas comprensibles entonces es posible que la política energética tenga los efectos esperados en el mercado inmobiliario; y, por ende, que se forme una sobredisposición a pagar por las viviendas más eficientes.
    Keywords: análisis conjunto basado en la elección; Barcelona; Choice-based Conjoint analysis; Eficiência Energética; Energy Efficiency; energy performance certificates; mercado residencial; Residential Real Estate Market
    JEL: R3
    Date: 2017–09–01
  20. By: Enrica De Cian (Department of Economics, University Of Venice Cà Foscari and CMCC); Filippo Pavanello (Department of Economics, University Of Venice Cà Foscari); Teresa Randazzo (Department of Economics, University Of Venice Cà Foscari); Malcolm Mistry (Department of Economics, University Of Venice Cà Foscari and CMCC); Marinella Davide (Department of Economics, University Of Venice Cà Foscari and CMCC)
    Abstract: This paper investigates how households have been adapting to climate change through the use of two technologies important for thermal comfort, air conditioning and thermal insulation. Merging a global gridded dataset of historical temperatures with the 2011 OECD EPIC survey, we study the determinants of installing air conditioning or adopting thermal insulation in response to a warmer climate in eight countries. After controlling for a set of demographic, socio-economic and attitudinal variables, we apply a binary probit model and find that exposure to a warmer climate influences only air conditioning adoption whereas, climatic conditions seem not to affect thermal insulation decisions which, instead, mainly depends on household wealth, dwelling characteristics, age, household size and propensity to energy-saving behaviours. This study does not find any evidence of a possible joint decision for the two technologies.
    Keywords: Cross-section, climate change, adaptation, energy
    JEL: D12 O13 Q4
    Date: 2019
  21. By: Felipe Encinas; Carlos Marmolejo; Carlos Aguirre; Nicolás Izquierdo; Javiera Díaz
    Abstract: En la mayoría de los países, la eficiencia energética a nivel residencial ha sido delegada en gran medida a las dinámicas de los mercados inmobiliarios después de regular un nivel mínimo. Esta definición regulatoria en algunos casos se complementa con la incorporación de certificados energéticos. Los casos de Brasil y Chile fueron seleccionados como referentes de mercados inmobiliarios donde los certificados energéticos, si bien existen como instrumento, no son obligatorios de ser aplicados en las transacciones de viviendas. El tema cobra particular importancia debido a que ambos países se ha convertido en referentes para la región en términos de la adopción temprana de regulaciones que afectan el desempeño energético de las viviendas, a la vez de experimentar procesos acelerados de urbanización y boom inmobiliario, que actualmente están viviendo otros países Latinoamericanos. Este artículo busca describir la manera como estos dos países han construido sus marcos regulatorios en torno a la eficiencia energética, en un contexto de economías en vías de desarrollo. Por otra parte, se busca evaluar si este contexto de regulaciones e incentivos ha sido capaz de permear en la demanda, generando una cultura de eficiencia energética en los consumidores. Para esto, se aplicó una encuesta online a cotizantes que están buscando viviendas para comprar, tanto en Brasil como en Chile, con el apoyo de “Mercado Libre”. El estudio muestra que los encuestados de los dos países presentan diferencias a la hora de establecer, tanto los conceptos, impactos de los hábitos y entorno construido como las responsabilidades de la eficiencia energética en la edificación. En esa lógica, se debe destacar que los niveles de información de los encuestados, todos demandantes de vivienda explicarían los niveles de respuestas centrales, asociados a una equipotencialidad más marcada en los encuestados de Brasil que los de Chile.
    Keywords: certificación energética; Eficiência Energética; energy certification; Energy Efficiency; energy regulation; mercado inmobiliario; real estate; regulaciones energéticas
    JEL: R3
    Date: 2017–09–01
  22. By: Carlos Roberto Lombardi; Daniel Ferreira Falcão
    Abstract: Com o objetivo de apontar as fontes alternativas e a utilização racional de energia elétrica em empreendimentos imobiliários, o estudo buscou, através de pesquisas bibliográficas, uma análise de diversas fontes de energia renováveis e procurou identificar as que melhor se encaixam para o propósito do trabalho. Três fontes de energia se destacaram para essa finalidade: energia eólica, cuja geração de energia elétrica ocorre através dos ventos, energia solar térmica, que utiliza coletores solares para aquecimento de água e a energia solar fotovoltaica, que produz eletricidade através da incidência da radiação solar. Disponibilizou-se metodologia de análise qualitativa para identificar as oportunidades de geração de energia própria em empreendimentos imobiliários. A fonte que melhor atende as unidades consumidoras para geração de energia elétrica é a fotovoltaica, cuja origem provém de uma reserva natural praticamente inesgotável: o sol. Através da redução de custos de equipamentos e de novos benefícios por parte do governo brasileiro, ela está se tornando cada vez mais acessível. O Ministério das Minas e Energia lançou em dezembro de 2015, um programa de desenvolvimento da geração distribuída de energia elétrica. Ele estimula a geração própria de energia nas unidades consumidoras conectadas à rede de distribuição de energia elétrica. Tem como atrativos incentivos fiscais e sistemas de compensação, aonde se pode guardar na rede de distribuição da concessionária, a energia produzida durante o dia e não consumida. Dessa forma, a rede da concessionária funciona como uma grande bateria que armazena esse energia e a devolve em momentos aonde não ocorre geração própria pelo sistema fotovoltaico, como por exemplo, à noite. Através do uso de produtos e equipamentos com melhor eficiência energética e do dimensionamento adequado dos sistemas fotovoltaicos conectados a rede para implementação em unidades consumidoras de edificações, abre-se uma nova perspectiva no uso de energia renovável, com estímulo significativo às ações de sustentabilidade e uma contribuição de vulto para uma menor agressão ao meio ambiente. Com as ações do governo se intensificando, promovendo mais debates públicos e incentivos, um novo cenário energético se desenha no Brasil. Junta-se a isso a elaboração de novos projetos que contemplem o uso dessa energia e teremos uma grande disseminação da sua aplicação em empreendimentos imobiliários.
    Keywords: Distributed Generation; empreendimento imobiliário; Energia Solar; Fontes Renováveis; Geração Distribuída; Photovoltaic System; Real Estate Development; Renewable Sources; Sistema Fotovoltaico; Solar Energy
    JEL: R3
    Date: 2017–09–01
  23. By: Martin Adler (VU University; AtAdlerAdvisory, The Netherlands); Stefanie Peer (Vienna University of Economics and Business); Tanja Sinozic (Institute of Technology Assessment (ITA), Austrian Academy of Sciences (OEAW))
    Abstract: This paper discusses the implications of autonomous-connected-electric-shared vehicles (ACES) for public finance, which have so far been widely ignored. In OECD countries, 5-12% of federal and up to 30% of local tax revenue are currently from fuel and vehicle taxation. The diffusion of ACES will likely reduce these important sources of government revenues, while also affecting transport-related government expenditures. We argue that the realization of socioeconomic benefits of ACES depends on the implementation of tailored public finance policies. In particular, the introduction of road tolls in line with ‘user pays’ and ‘polluter pays’ principles will become more attractive. Moreover, innovation in taxation schemes to fit the changing technological circumstances may alter the (relative) importance of levels of governance in transport policy making, likely shifting power towards local (in particular urban) governmental levels. We finally argue that due to path-dependencies, and the risk of lock-in effects in sub-optimal public finance regimes, further research and near-term policy action regarding ACES is required.
    Keywords: autonomous connected electric shared vehicles; public finance; taxation; fiscal revenues; fiscal expenditures,disruptive technologies; path-dependency; technological transition; political economy; multilevel-governance
    JEL: R40 R50 H21 H23 H54 H71 O18 O33
    Date: 2019–01–27
  24. By: Olivier Massol (IFPEN - IFP Energies nouvelles, ENSPM - IFP School, University of London [London], Climate Economics Chair - University Paris Dauphine); Omer Rifaat (ENSPM - IFP School)
    Abstract: This paper develops a detailed partial equilibrium model of the global helium market to study the effects of the recently decided rapid phase out of the U.S. Federal Helium Reserve (FHR), a vast strategic stockpile accumulated during the 1960s. The model incorporates a detailed representation of that industry and treats both helium producers and the FHR as players in a dynamic non-cooperative game. The goal of each player is assumed to be the maximization of discounted profit, subject to technical and resource constraints. We consider two alternative policies aimed at organizing the phase out of the FHR: the currently implemented one and a less stringent one whereby the FHR would be allowed to operate as a profit-maximizing agent during an extended period of time. Evidences gained from a series of market simulations indicate that, compared to the current policy, a less stringent policy mandate systematically increases the financial return to the U.S. federal budget, always enhances environmental outcomes as it lowers helium venting into the atmosphere, and also augments global welfare in three out of the four scenarios considered in the paper.
    Keywords: Helium economics,Strategic reserve,Resource conservation,Imperfect competition,Partial equilibrium modeling
    Date: 2018–11
  25. By: Adediran, Ibrahim Opeyemi; Masih, Mansur
    Abstract: The objective of this study is to investigate the relationship between the global oil and stock markets using the Islamic and conventional global stock indexes. We test the short- and long-run asymmetric impact of oil prices on both the conventional and Islamic stock prices in the global markets. The nonlinear ARDL approach developed by Shin et al.(2014) is utilized to examine the asymmetric relationship between the variables. The results tend to indicate that the impact of oil prices on stock prices is asymmetric during the short-run for both the Islamic and conventional stock markets. However, the long-run asymmetric relationship exists for the impact of the Oil price on Islamic stocks only and not on conventional stocks.The results carry important policy implications for the investors and policymakers.
    Keywords: global oil and stock markets, ARDL, NARDL, causality
    JEL: C22 C58 G15
    Date: 2018–12–30
  26. By: Asongu, Simplice A; Odhiambo, Nicholas M
    Abstract: This research examines the relevance of inclusive development in modulating the role ofgovernance on environmental degradation. The study focuses on forty-four countries in sub-Saharan Africa for the period 2000-2012. The Generalised Method of Moments is employed asthe empirical strategy and CO2 emissions per capita is used to measure environmental pollution.Bundled and unbundled governance dynamics are employed, notably: political governance(consisting of political stability/no violence and ???voice and accountability???), economicgovernance (encompassing government effectiveness and regulation quality), institutionalgovernance (entailing corruption-control and the rule of law), and general governance (acomposite measure of political governance, economic governance and institutionalgovernance). The following main findings are established. First, the underlying net effect in themoderating role of inclusive development in the governance-CO2 emissions nexus is notsignificant in regressions pertaining to political governance and economic governance. Second,there are positive net effects from the relevance of inclusive development in modulating theeffects of regulation quality, economic governance and general governance on CO2 emissions.The significant and insignificant effects are elucidated. Policy implications are discussed.
    Keywords: CO2 emissions; Governance; Sustainable development; Sub-Saharan Africa
    Date: 2019–01
  27. By: Danielis, Romeo; Giansoldati, Marco; Scorrano, Mariangela
    Abstract: The paper presents a total cost of ownership (TCO) model, implemented with data on Italian cars with different propulsion systems. The model is applied to three case studies: a) a comparison between the best-selling (battery electric vehicles (BEVs) and internal combustion engine vehicles (ICEVs); b) a pairwise comparison between comparable BEVs and ICEVs of the same brand; c) the impact of urban parking and access policies favoring the BEVs. We find that in Italy the purchasing cost of the BEVs is about 15,000 euro higher than the 10 best-selling ICEVs. Such a gap is not compensated by the lower variable costs unless a very high annual distance (20,579 km per year for 10 years) is driven, which is much above the current Italian average. Such a finding helps explaining the low BEVs’ market share in Italy. The difference between the consumer-oriented TCO and the society-oriented TCO, which represents the amount of the subsidy economically justifiable on the basis of the social costs, varies between €315 and €581. If the social costs are internalized, the overall (consumer-oriented and society-oriented) TCO would be still lower for the ICEVs than the BEVs. The pairwise comparison suggests that at least a 4,000- 6,000 euro subsidy would be needed to balance the BEVs’ unfavorable TCO. Finally, we find that parking and access fees favoring BEVs at the urban level could have a significant impact on reducing the distance driven needed to reach the consumer-oriented TCO break-even point.
    Date: 2019
  28. By: Ferrari, Giorgio (Center for Mathematical Economics, Bielefeld University); Koch, Torben (Center for Mathematical Economics, Bielefeld University)
    Abstract: This paper proposes a strategic model of pollution control. A firm, representative of the productive sector of a country, aims at maximizing its profits by expanding its production. Assuming that the output of production is proportional to the level of pollutants' emissions, the firm increases the level of pollution. The government of the country aims at minimizing the social costs due to the pollution, and introduces regulatory constraints on the emissions' level, which then effectively cap the output of production. Supposing that the firm and the government face both proportional and fixed costs in order to adopt their policies, we model the previous problem as a stochastic impulse two-person nonzero-sum game. The state variable of the game is the level of the output of production which evolves as a general linearly controlled one-dimensional Itô-diffusion. Following an educated guess, we first construct a pair of candidate equilibrium policies and of corresponding equilibrium values, and we then provide a set of sufficient conditions under which they indeed realize an equilibrium. Our results are complemented by a numerical study when the (uncontrolled) output of production evolves as a geometric Brownian motion, and the firm's operating prot and the government's running cost functions are of power type. An analysis of the dependency of the equilibrium policies and values on the model parameters yields interesting new behaviors that we explain as a consequence of the strategic interaction between the firm and the government.
    Keywords: pollution, stochastic impulse nonzero-sum game, verication theorem, diffusions
    Date: 2018–08–15
  29. By: Mohajan, Haradhan
    Abstract: The harmful effect of acid rain is considered as one of the most serious environmental problems in the modern globalized world. The effects of acid rain have reached dramatically mainly in the industrialized countries which fall on global ecology. It becomes a major local ecological problem in most of the countries of the world. International concern about acid rain has increased recently because of global ecological pollutions, such as fish kills, dying forests, dead of lakes and other marshes, and damage to monuments and other historic artifacts. Acid rain also creates various health problems of the human body like eye, nose, and throat irritations, and lung disorders, such as dry coughs, asthma, headaches, and bronchitis. The excess presence of sulfur dioxide and oxides of nitrogen in rainwater is the main cause of acid rain. Emissions of these gases have increased in the atmosphere due to human activities, such as combustion of fossil fuels in thermal power plants, burnable wastes, automobiles, and airplanes. Some developed countries have taken steps to reduce the emission of the gases that cause acid rain. To reduce and protect global acid rain it is necessary to identify the causes and control strategies of it. An attempt has been taken here to reduce the acid rain for the welfare of the global ecology.
    Keywords: Acid Rain, pH Value, Pollution, Corrosion
    JEL: Q5 Q53
    Date: 2018–10–17
  30. By: Nillesen, P.; Pollitt, M.
    Abstract: Traditional restructuring of power markets has focused on legally separating monopolistic transmission and distribution infrastructure, with sufficient regulatory oversight to ensure non-discriminatory access to networks, and transparent and cost-reflective tariffs. There is consensus that ownership separation for transmission assets is beneficial for competition and transparency. However, at the distribution level the benefits are questionable. This paper reviews the theoretical arguments for ownership unbundling and summarises the findings from 23 academic papers and consulting reports. In addition, this paper empirically demonstrates that forced distribution ownership unbundling in New Zealand (from 1998) and the Netherlands (from 2009) did not increase retail competition (and reduced it in New Zealand), did not increase network quality, but did result in significant one-off and structural costs. The pros and cons of DSO ownership unbundling is topical given current policy discussions in Denmark and the more general changes to the operating environment of DSOs with increasingly active networks due to decentralised renewables production and bi-directional power flows. Policymakers should therefore consider alternative policy measures to increase retail competition and network quality.
    Keywords: electricity distribution, ownership unbundling
    JEL: L94
    Date: 2019–01–19

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