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on Energy Economics |
| By: | Crampes, Claude; Trochet, Jean-Michel |
| Abstract: | Electricity storage encompasses a disparate list of technologies such as pumped-storage hydroelectricity, compressed-air energy storage, chemical batteries, and flywheels. These technologies can provide the electricity system with heterogeneous services of energy transfers across months, weeks, days or intra-days, power transfers for an hour, a few minutes or seconds, and can assist operators in load following, frequency control, and uninterrupted power supply. The paper presents a unified economic analysis of these technologies and services. We underline the role of charge and discharge durations as a criterion for economic segmentation of technologies and services. We highlight the complementary value of storage in electricity systems with a high share of low variable cost and low carbon generation (nuclear, hydro, wind power, solar photovoltaic). We also underline the limited substitution value of storage for generation with high variable cost (gas combustion-turbines or gas-oil motor engines), given the cost of state-of-the-art storage technologies and the current relatively low cost of fossil fuels and low carbon pricing. |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:33276&r=all |
| By: | Hameed, Shahzad; Wei, Wei; Farrukh, Umer; Mushtaq, Khali |
| Abstract: | Energy is the most essential tool for production and distribution of economic goods. It is also considered as crucial input of economic development. The World Energy Committee states that there are several environmental risks linked to energy production from non-renewable sources such as coal, gas, and petroleum etc. One of the associated risks is high per capita carbon emissions. To reduce such risk economy should switch to the renewable energy sources that characterize less or no carbon emission. This paper investigated the dynamics of coal, gas and hydroelectric energy within the framework of the environmental Kuznets curve. The study used the Arellano and Bond (1991) dynamic panel model using the GMM framework developed by the Hansen (1982). The empirical results of the study confirm the environmental Kuznets curve (EKC) hypothesis and that coal and gas are significant contributors to carbon. Results suggest that the hydel energy can play an essential role in mitigating the carbon emissions and improving climate emissions in case of South and East Asian Countries. |
| Keywords: | Environmental Kuznets curve; Renewable energy; Non-renewable energy; CO2 emissions; Arellano-Bond dynamic panel-data. |
| JEL: | Q43 Q5 Q58 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90435&r=all |
| By: | Shahbaz, Muhammad; Balsalobre-Lorente, Daniel; Sinha, Avik |
| Abstract: | This study examines the association between foreign direct investment (FDI) and carbon emissions for the Middle East and North African (MENA) region in 1990–2015, including biomass energy consumption as an additional determinant of carbon emissions. We apply the generalized method of moments (GMM) to validate the existence of the pollution haven hypothesis (PHH). The N-shaped association is also validated between FDI and carbon emissions. The link between economic growth and carbon emissions is inverted-U and N-shaped; that is, it satisfies the environmental Kuznets curve (EKC) hypotheses. Biomass energy use lowers carbon emissions, and the causality analysis reveals that FDI causes CO2 emissions. Clearly, the results confirm the existence of a feedback effect between economic growth and carbon emissions. The connection between biomass energy use and CO2 emissions is also bidirectional. The empirical findings suggest policy makers to design comprehensive trade and energy policies by targeting the cleaner production practices, for not only to ensure environmental sustainability, but also to fulfil the objectives of sustainable development goals. |
| Keywords: | Foreign Direct Investment, Carbon Emissions, Middle East and North Africa, Generalized Method of Moments, Biomass Energy |
| JEL: | Q5 |
| Date: | 2019–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:91729&r=all |
| By: | Morteza Taiebat; Samuel Stolper; Ming Xu |
| Abstract: | Connected and automated vehicles (CAVs) are expected to yield significant improvements in safety, energy efficiency, and time utilization. However, their net effect on energy and environmental outcomes is unclear. Higher fuel economy reduces the energy required per mile of travel, but it also reduces the fuel cost of travel, incentivizing more travel and causing an energy "rebound effect." Moreover, CAVs are predicted to vastly reduce the time cost of travel, inducing further increases in travel and energy use. In this paper, we forecast the induced travel and rebound from CAVs using data on existing travel behavior. We develop a microeconomic model of vehicle miles traveled (VMT) choice under income and time constraints; then we use it to estimate elasticities of VMT demand with respect to fuel and time costs, with fuel cost data from the 2017 United States National Household Travel Survey (NHTS) and wage-derived predictions of travel time cost. Our central estimate of the combined price elasticity of VMT demand is -0.4, which differs substantially from previous estimates. We also find evidence that wealthier households have more elastic demand, and that households at all income levels are more sensitive to time costs than to fuel costs. We use our estimated elasticities to simulate VMT and energy use impacts of full, private CAV adoption under a range of possible changes to the fuel and time costs of travel. We forecast a 2-47% increase in travel demand for an average household. Our results indicate that backfire - i.e., a net rise in energy use - is a possibility, especially in higher income groups. This presents a stiff challenge to policy goals for reductions in not only energy use but also traffic congestion and local and global air pollution, as CAV use increases. |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1902.00382&r=all |
| By: | Growitsch, Christian (Frauhofer CEM, Hamburg University); Höffler, Felix (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The Fukushima Daiichi nuclear accident in 2011 led to some drastic reactions in Germany, in particular an immediate shut-downof older nuclear power plants. This event is therefore often seen as a turning point, or a major accelerator for the German Energiewende. We investigate the short term effects, but also put the event into a longer, 10-year perspective. This shows that hardly any trend in the energy policy was strongly affected by policy decisions of 2011. Major trends are the increase of renewable electricity sources, the phase out of nuclear, a slight increase in energy efficiency, while total energy consumption and also greenhouse gas emissions remained stable in the decade 2005-2015/16. We also provide some tentative explanations for these developments. |
| Keywords: | Germany; Japan; Fukushima; Nuclear power; Energiewende; Energy policy |
| JEL: | Q40 Q48 Q53 Q58 |
| Date: | 2019–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2019_002&r=all |
| By: | Peter, Jakob (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Ongoing climate change affects complex and long-lived infrastructures like electricity systems. Particularly for decarbonized electricity systems based on variable renewable energies, there is a variety of impact mechanisms working differently in size and direction. Main impacts for Europe include changes in wind and solar resources, hydro power, cooling water availability for thermoelectric generation and electricity demand. Hence, it is not only important to understand the total effects, i.e., how much welfare may be gained when accounting for climate change impacts in all dimensions, but also to disentangle various effects in terms of their marginal contribution to the potential welfare loss. This paper applies a two-stage modeling framework to assess RCP8.5 climate change impacts on the European electricity system. Thereby, the performance of two electricity system design strategies – one based on no anticipation of climate change and one anticipating impacts of climate change – is studied under a variety of climate change impacts. Impacts on wind and solar resources are found to cause the largest system effects in 2100. Combined climate change impacts increase system costs of a system designed without climate change anticipation due to increased fuel and carbon permit costs. Applying a system design strategy with climate change anticipation increases the cost-optimal share of variable renewable energy based on additional wind offshore capacity in 2100, at a reduction in nuclear, wind onshore and solar PV capacity. Compared to a no anticipation strategy, total system costs are reduced. |
| Keywords: | Climate Change; Variable renewable energy; Power system modeling |
| JEL: | C61 Q41 Q42 Q48 Q54 |
| Date: | 2019–02–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2019_003&r=all |
| By: | Louis-Gaëtan Giraudet (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, ENPC - École des Ponts ParisTech); Cyril Bourgeois (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, ENPC - École des Ponts ParisTech, CNRS - Centre National de la Recherche Scientifique); Philippe Quirion (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, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Using an energy-economy model that integrates behavioural and technological detail, we evaluate the impact of key policies-energy efficiency subsidies (tax credits, zero-interest loans, reduced VAT, white certificates), the carbon tax and building codes-on residential energy demand for space heating in France. We find that the carbon tax is the most effective, yet most regressive, instrument. Taking into account all possible interactions among instruments, we find that they imply on average a 10% variation in policy effectiveness. Subsidies save energy at a cost of 0.05-0.08 euro per lifetime discounted kilowatt-hour, with a leverage of 0.9 to 1.4 in 2015, decreasing over time as the potential for energy-saving opportunities is being exhausted. Targeting subsidies towards low-income households, who tend to live in energy inefficient dwellings, increases leverage, thus reconciling economic efficiency and equity. The public cost of subsidies-3 billion euros in 2013-is outweighed by carbon tax receipts from 2025 onwards. Meeting the long-term energy saving targets set by the French Government however requires increasing subsidy rates and maintaining them through 2050. In particular, an order-of-magnitude discrepancy between simulated and observed numbers of zero-interest loans points to cognitive or strategic barriers that need to be removed to increase policy effectiveness. |
| Keywords: | residential buildings,space heating,energy-economy modelling,energy efficiency subsidies,carbon tax,fuel poverty |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01890642&r=all |
| By: | Cohen, François; Glachant, Matthieu; Söderberg, Magnus |
| Abstract: | The empirical literature on the energy efficiency gap concentrates on demand inefficiencies in the energy-using durables markets and finds evidence that consumers underestimate future energy costs when purchasing a new appliance. We take a broader view and also consider the impact of imperfect competition. Using data on the UK refrigerator market (2002-2007), we find that the average energy consumption of appliances sold during this period was only 7.2% higher than what would have been observed under a scenario with a perfectly competitive market and non-myopic consumers. One reason for this small gap is that market power actually reduces energy use. |
| Keywords: | Energy Efficiency; Electricity Prices; Consumer Myopia; Imperfect Competition |
| JEL: | D12 L68 Q41 |
| Date: | 2017–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:69188&r=all |
| By: | Thonipara, Anita; Runst, Petrik; Ochsner, Christian; Bizer, Kilian |
| Abstract: | Despite a common EU directive on energy efficiency in residential buildings, levels of energy efficiency differ vastly across European countries. This article analyses these differences and investigates the effectiveness of different energy efficiency policies in place in those countries. We firstly use panel data to explain average yearly energy consumption per dwelling and country by observable characteristics such as climatic conditions, energy prices, income, and floor area. We then use the unexplained variation by sorting between-country differences as well as plotting within-country changes over time to identify better performing countries. These countries are analysed qualitatively in a second step. We conduct expert interviews and examine the legal rules regarding building energy efficiency. Based on our exploratory analysis we generate a number of hypotheses. First, we suggest that regulatory standards, in conjunction with increased construction activity, can be effective in the long run. Second, the results suggest that carbon taxation represents an effective means for energy efficiency. |
| Keywords: | carbon-taxation,energy efficiency,energy conservation,climate policy,residential buildings |
| JEL: | H23 K32 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:122018&r=all |
| By: | McCoy, Daire; Curtice, John |
| Abstract: | In order to better understand the potential for both policy and technological improvements to aid carbon abatement, long-term historical information on the time-path of transition from more traditional to cleaner fuels is useful. This is a relatively understudied element of the fuel switching literature in both developed and emerging economies. This research adds to this literature by examing the adoption time-path of network gas as a heating fuel. We merge a unique dataset on gas network roll-out over time, with other geo-coded data and employ an instrumental variables technique in order to simultaneously model supply and demand. Results indicate a non-linear relationship between the proportion of households using gas as their primary means of central heating and the length of time the network has been in place in each area. Proximity to the gas network, peat bogs, and areas which have banned the consumption of bituminous coal also affect gas connections. Variations in socioeconomic and dwelling characteristics at area level can also help explain connections to the gas network. A better understanding of this variation is crucial in designing targeted policies and can aid network expansion decisions |
| Keywords: | Residential fuel choice; Spatial economics; Instrumental variables estimation |
| JEL: | C31 Q40 |
| Date: | 2018–01–06 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:86625&r=all |
| By: | Geoffrey Barrows (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, X - École polytechnique); Hélène Ollivier (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics) |
| Abstract: | With asymmetric climate policies, regulation in one country can be undercut by missions growth in another. Previous research finds evidence that regulation erodes the competitiveness of domestic firms and leads to higher imports, but increased imports need not imply increased emissions if domestic sales are jointly determined with export sales or if emission intensity of manufacturing adjusts endogenously to foreign demand. In this paper, we estimate for the first time how production and emissions of manufacturing firms in one country respond to foreign demand shocks in trading partner markets. Using a panel of large Indian manufacturers and an instrumental variable strategy, we find that foreign demand growth leads to higher exports, domestic sales, production, and CO2 emissions, and slightly lower emission intensity. The results imply that a representative exporter facing the average observed foreign demand growth over the period 1995-2011 would have increased CO2 emissions by 1.39% annually as a result of foreign demand growth, which translates into 6.69% total increase in CO2 emissions from Indian manufacturing over the period. Breaking down emission intensity reduction into component channels, we find some evidence of product-mix effects, but fail to reject the null of no change in technology. Back of the envelope calculations indicate that environmental regulation that doubles energy prices world-wide (except in India) would only increase CO2 emissions from India by 1.5%. Thus, while leakage fears are legitimate, the magnitude appears fairly small in the context of India. |
| Keywords: | leakage,trade and environment,product mix,technological change |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01945848&r=all |
| By: | Heather Klemick; Elizabeth Kopits; Ann Wolverton |
| Abstract: | Engineering-based studies of energy efficiency often find that firms and consumers fail to adopt technologies that appear to provide net private benefits absent regulation. We examine the recent empirical literature on the extent to which expected future fuel costs are reflected in vehicle prices and therefore valued by consumers when making purchase decisions. These studies improve upon the prior literature due to their use of highly disaggregated panel data that allows for defensible identification strategies. These studies found that vehicle purchase prices reflect about 50 to 100 percent of future fuel expenses, assuming static consumer expectations about future gasoline prices and a discount rate of five to six percent. Recent regulatory analyses have estimated the benefits of more stringent vehicle standards implicitly assuming that no improvements in fuel economy will occur in the baseline, absent regulation. This assumption is consistent with consumers placing no value on future fuel costs when making vehicle purchase decision. The recent empirical evidence supports using a range of consumer valuation assumptions and applying this range consistently in the baseline and regulatory scenarios when modeling consumer purchase and firm investment decisions. |
| Keywords: | Consumer valuation, fuel economy, vehicle purchase decisions, benefit-cost analysis |
| JEL: | D12 D22 R41 Q58 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:nev:wpaper:wp201902&r=all |
| By: | Frondel, Manuel; Kussel, Gerhard; Sommer, Stephan |
| Abstract: | To provide the basis for evaluating the effectiveness of price policies, this paper contributes to the literature by estimating the heterogeneity in the response of residential electricity demand to price increases across household types. Drawing on household panel data from the German Residential Energy Consumption Survey (GRECS) that span over nine years (2006-2014), we gauge the response of residential electricity demand to price increases on the basis of the dynamic Blundell-Bond estimator to account for potential simultaneity and endogeneity problems, as well as Nickell bias. Estimating short- and long-run price elasticities of -0.44 and -0.66, respectively, our results indicate that price measures may be effective in dampening residential electricity consumption, particularly in the long run. Yet, we also find that responses to price changes are very heterogeneous across household groups, an outcome that has important implications for policy-making. Most notably, we do not find any significant price response for lowincome households. |
| Keywords: | dynamic panel methods,instrumental variable approach |
| JEL: | C23 C26 D12 Q41 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:793&r=all |
| By: | Eoin Broin (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); Jens Ewald (GU - University of Gothenburg); Franck Nadaud (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, CNRS - Centre National de la Recherche Scientifique); Érika Mata (IVL Swedish Environmental Research Institute); Magnus Hennlock (IVL Swedish Environmental Research Institute); Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, 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); Thomas Sterner (GU - University of Gothenburg) |
| Abstract: | We evaluate the impact of a variety of energy efficiency policies on residential energy demand in six major EU economies (France, Germany, Italy, Spain, UK and Sweden) from 1990 to 2015. We find that both financing policies, such as loan facilities and subsidies, and building codes, as approximated by U-Values, have been effective at reducing energy demand for space heating. We additionally find the short term price and income effects to be inelastic, with elasticity coefficients of-0.2 and 0.2 respectively. |
| Date: | 2019–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01985269&r=all |
| By: | Eoin Broin (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); Jens Ewald (GU - University of Gothenburg); Franck Nadaud (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); Érika Mata (IVL Swedish Environmental Research Institute); Magnus Hennlock (IVL Swedish Environmental Research Institute); Louis-Gaëtan Giraudet (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); Thomas Sterner (GU - University of Gothenburg) |
| Abstract: | We evaluate the impact of a variety of energy efficiency policies on residential energy demand in six major EU economies (France, Germany, Italy, Spain, UK and Sweden) from 1990 to 2015. We find that both financing policies, such as loan facilities and subsidies, and building codes, as approximated by U-Values, have been effective at reducing energy demand for space heating. We additionally find the short term price and income effects to be inelastic, with elasticity coefficients of-0.2 and 0.2 respectively. |
| Date: | 2019–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01985269&r=all |
| By: | Stéphane Gauthier (PSE - Paris School of Economics, CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Fanny Henriet (PSE - Paris School of Economics, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - INRA - Institut National de la Recherche Agronomique - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We study the optimal design of consumption taxes when both global and local externalities matter. Local externalities make the social impact of the consumption of externality-generating commodities varying across consumers. A typical example involves the greater damage caused by pollution from urban fuel consumers. We provide a condition for the validity of the targeting principle according to which externality concerns should only fall on the taxes on externality-generating commodities. When this condition is satisfied, one can decompose the tax on an externality-generating commodity into equity/efficiency and Pigovian contributions. The Pigovian contribution should exceed the average social damage if the fuel consumption of the greatest polluters is more responsive to fuel price. In an empirical illustration we find that the fuel tax in France is mostly explained by Pigovian considerations. |
| Keywords: | Pigovian tax,targeting principle,local externality,pollution,commodity taxes |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-01826330&r=all |
| By: | Jan Witajewski-Baltvilks; Carolyn Fischer |
| Abstract: | If one region of the world switches its research effort from dirty to clean technologies, will other regions follow? To investigate this question we built a North-South model that combines insights from directed technological change and quality ladder endogenous growth models. We allow researchers in the South to create business-stealing innovations. We found that (i) after the North switches from dirty to clean technologies, the growing value of clean markets will motivate technology firms in the South to follow the switch; however this result is conditional on the North being sufficiently large. (ii) If the two regions invest research effort to different sectors and the outputs of the two sectors are gross substitutes, then the long run growth rates in both regions are smaller than if the global research effort were to be invested in one sector. (iii) If the North switches to R&D in clean technologies, the benevolent central planner in the South would ensure that all South R&D switches too, unless the planner’s discount rate is high. |
| Keywords: | directed technological change, green growth, endogenous growth model, cross-country spillovers, unilateral climate policy, green R&D subsidies |
| JEL: | O33 O41 O44 Q55 Q56 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp102018&r=all |
| By: | Jakob, Michael; Soria, Rafael; Trinidad, Carlos; Edenhofer, Ottmar; Bak, Céline; Bouille, Daniel; Buira, Daniel; Carlino, Hernan; Gutman, Veronica; Hübner, Christian; Knopf, Brigitte; Lucena, André; Santos, Luan; Scott, Andrew; Steckel, Jan Christoph; Tanaka, Kanako; Vogt-Schilb, Adrien; Yamada, Koichi |
| Abstract: | Green fiscal reforms would contribute to climate change mitigation, increase the economic efficiency of national tax systems and provide additional public revenues. Some countries in Latin America have already taken first steps towards green fiscal reforms. This paper provides an overview of the major challenges for the successful implementation of such reforms and discusses how they could be overcome. The authors first discuss the role of country-specific economic and political enabling conditions that need to be in place for successful implementation for green successful reforms. Second, they emphasize the importance of comprehensive reform plans that include all relevant ministries and agencies and are well-aligned with other policy objectives, such as energy security and industrial development. Third, they highlight how appropriate sequencing and gradualism could lower implementation costs and hence increase the political feasibility of green fiscal reforms. Finally, the authors analyze the potential impacts of green fiscal reforms on the distribution of income and discuss transfer schemes that could avoid adverse outcomes for the poorest parts of the population. They use these four dimensions to illustrate why recent reform efforts in selected Latin American countries have been successful or have failed, respectively. |
| Keywords: | green fiscal reform,energy subsidies,Latin America,multi-objective climate policy,sequencing,distribution |
| JEL: | H23 E62 Q54 N16 Q48 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwedp:201886&r=all |
| By: | Paula Pereda; Andrea Lucchesi, Carolina Policarpo Garcia, Bruno Toni Palialol |
| Abstract: | We evaluate the effects of a carbon tax in the Brazilian economy using an input-output framework. First, we consider the impacts of a carbon tax of US$ 10 and US$ 50/metric ton of CO2 equivalent. As usual, the adoption of the carbon tax generates adverse effects on GDP, wages and jobs in the short term, but reduces emissions and generates new government revenues, especially in the case of the greater tax. Second, we consider a broader tax system reform. In this reform, we replace distortionary taxes by a tax on value added. To compensate for the loss of government revenue, we assume a carbon tax with equivalent revenue. We find that the net effect is a GDP increase of 0.47%, the creation of 533 thousand jobs and reduction of 1.6 million tons of CO2 emissions. Both scenarios exempt exports and levy imports to correct adverse effects on the country’s competitiveness. |
| Keywords: | carbon tax; input-output analysis; revenue-recycling effect; neutral tax burden |
| JEL: | H22 Q52 Q58 |
| Date: | 2019–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2019wpecon02&r=all |
| By: | Congressional Budget Office |
| Abstract: | The Obama Administration’s 2017 plans for nuclear forces would cost about $1.2 trillion (in 2017 dollars) over the 2017–2046 period, CBO estimates. About $400 billion of that total would pay for modernization, according to CBO’s assessment of the most recent detailed plans for the Departments of Defense and Energy. CBO analyzed nine options that would reduce the 30-year costs of nuclear forces by between 2 percent and 11 percent if they were implemented for the next generation of systems (and more if they were implemented now). |
| JEL: | H56 H57 Q48 |
| Date: | 2017–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:53211&r=all |
| By: | Micha{\l} Narajewski; Florian Ziel |
| Abstract: | In the following paper we present a simple intensity estimation method of transaction arrivals on the intraday electricity market. Assuming the interarrival times distribution, we utilize a maximum likelihood estimation. The method's performance is briefly tested using German Intraday Continuous data. Despite the simplicity of the method, the results are encouraging. The supplementary materials containing the R-codes and the data are attached to this paper. |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1901.09729&r=all |
| By: | Deltas, George; Polemis, Michael |
| Abstract: | We show that European retail gasoline prices respond slower to changes in the dollar exchange rate than to changes in the international spot price of wholesale gasoline, which is quoted in dollars. This differential passthrough is not specific to the Euro, and is observed both for Euro-member states and also for those using national currencies. We examine the possibility that this pattern is driven by differences in either the variability and or persistence of exchange rates changes relative to those of the dollar price of gasoline, but find minimal supporting evidence for either. Refinery supply contracts treat changes in the dollar price and the exchange rate symmetrically, and are thus also an unlikely explanation. Other possibilities, such pricing to the market or pricing based on the country of origin are precluded by the nature of the product. There is evidence, however, that exchange rate fluctuations are more strongly correlated with country-specific economic conditions, which reduces the ability of firms to pass-through price increases and lessens their incentive to pass-through price decreases. Moreover, consumers likely draw a more direct link between the crude oil and retail gasoline prices, affecting their price expectations and search intensity, and optimal passthrough. |
| Keywords: | Price Adjustment, Inflation, Gasoline Pricing. |
| JEL: | F31 L11 L16 |
| Date: | 2019–01–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:91698&r=all |
| By: | Joelle Noailly; Roger Smeets |
| Abstract: | The objective of this study is to examine the impact of firms’ financing constraints on innovation activities in renewable (REN) versus fossil-fuel (FF) technologies. Our empirical methodology relies on the construction of a firm-level dataset for 1,300 European firms over the 1995-2009 period combining balance-sheet information linked with patenting activities in REN and FF technologies. We estimate the importance of the different types of financing (e.g. cash flow, long-term debt, and stock issues) on firms’ patenting activities for the different samples of firms. We use count estimation techniques commonly used for models with patent data and control for a large set of firm-specific controls and market developments in REN and FF technologies. We find evidence for a positive impact of internal finance on patenting activities for the sample of firms specialized in REN innovation, while we find no evidence of this link for other firms, such as firms conducting FF innovation or large mixed firms conducting both REN and FF innovation. Hence, financing constraints matter for firms specialized in REN innovation but not for other firms. Our results have important implications for policymaking as the results emphasize that small innovative newcomers in the field of renewable energy are particularly vulnerable to financing constraints. |
| Keywords: | R&D;.; Financing constraints; renewable energy |
| JEL: | O14 O33 Q41 Q42 |
| Date: | 2019–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_58&r=all |
| By: | Jean-Claude Berthelemy (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Arnaud Millien (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper is the first product of a project which aims to build a Collaborative Smart Mapping of Mini-grid Action (CoSMMA), whose principal objective is to identify best practice in decentralized electrification projects. By evaluation of 421 projects, from published research papers, we have built a pilot CoSMMA which proves its feasibility. Its relevance is demonstrated by a meta-analysis, which reveals the principal characteristics of decentralized electrification projects which have positive impacts on sustainable development. Four main characteristics were considered: technology (source or energy), system size (power), decision level (from local to country level), geographic location. When searching for best practice, technology and system size must be considered together, because the chosen technology may constrain the power, which is provided by the system. We find that the most popular projects, which are based on Solar Home Systems (SHS) are not the most effective. The problem with SHS is not the use of solar energy, but the small system size often chosen for SHS. Mini-grids, of larger size, especially those which use hybrid renewable sources of energy, have more positive impacts, because these systems combine the benefits of sustainability and flexibility. In terms of decision level, we find that both top-down and bottom-up approaches have advantages, with the observation of a U-shaped curve for the influence of the decision level on the probability of obtaining positive impacts. Geographical location matters, as it is very often the key to system feasibility. We find that DEPs are more effective in Latin America than in Asia, and more effective in Asia than in Africa. We also attempted to study the type of effects resulting from DEPs. Descriptive data suggest that for some types of effects, positive impacts are more likely than for others. Decentralized electrification projects have a more positive impact on Lifestyle & NICT or Household agenda than on Economic transformation or Community life. However, this pilot CoSMMA does not contain enough information to study precisely the types of effects, because some types of effects have not been studied frequently in the existing literature. This is the case, for instance, for environmental effects, which have been rarely measured scientifically. Finally, we attempted to broaden our information set by including expert data, which was entered into the CoSMMA meta-analysis. We define expert data as data that are not supported by statistical tests with measures of significance, whereas the evaluations based on scientific data were supported by statistical tests of significance. The expert data may be valid, but our attempt to include it in the analysis failed at this stage. The determinants of unproven effects appear to be quite different from the determinants of proven effects in our meta-analysis, and using expert data would imply merging proven and unproven effects, which would totally blur the conclusions. |
| Keywords: | Decentralized electrification,sustainable development,impact assessment,meta-analysis |
| Date: | 2018–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01922517&r=all |
| By: | Audrey Berry (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) |
| Date: | 2018–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01896838&r=all |
| By: | Louis-Gaëtan Giraudet (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, ENPC - École des Ponts ParisTech); Anna Petronevich (Banque de France - Banque de France - Banque de France); Laurent Faucheux (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: | Basic principles of loan pricing predict that the interest rate charged for energy efficiency investment is lower than for conventional investment. We test this hypothesis using a unique dataset of posted interest rates retrieved on a weekly basis from the websites of 15 lending institutions covering the near totality of the French market for unsecured credit. Crucially, our data are immune from sorting bias based on borrower characteristics. We find that the interest rate spread between conventional and energy efficiency investment was negative in 2015 and turned positive in 2016. A similar switch occurred to the spread between home renovation investment and vehicle investment. These results together imply that loans for home energy renovation were consistently charged relatively high interest rates. This can be interpreted as a new barrier to energy efficiency, with adverse consequences for scaling up home energy renovation. One possible explanation is that lenders use project characteristics as a screening device of unobservable borrower characteristics. |
| Keywords: | energy efficiency gap,unsecured loan,home energy retrofit |
| Date: | 2018–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01890636&r=all |
| By: | Rui Evangelista; Esmeralda A. Ramalho; João Andrade e Silva |
| Abstract: | Using a unique dataset containing information of around 256 thousand residential property sales, this paper discloses a clear sales premium for most energy efficient dwellings, which is more pronounced for apartments (13%) than for houses (5 to 6%). Cross-country comparisons support the finding that energy efficiency price premiums are higher in the Portuguese residential market than in central and northern European markets. Results emphasize the relevance of data issues in hedonic regression models. They illustrate how the use of appraisal prices, explanatory variables with measurement errors, and the omission of variables associated with the quality of the properties, may seriously bias energy efficiency partial effect estimates. These findings provide valuable information not only to policy-makers, but also to researchers interested in this area. |
| Keywords: | Portugal, energy efficiency, residential property market, hedonic price models, cross-country comparisons |
| JEL: | C51 C81 Q41 R21 R30 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp0642019&r=all |
| By: | Frondel, Manuel; Kussel, Gerhard; Sommer, Stephan; Vance, Colin |
| Abstract: | Given the rapid expansion of wind power capacities in Germany, this paper estimates the effects of wind turbines on house prices using real estate price data from Germany's leading online broker. Employing a hedonic price model whose specification is informed by machine learning techniques, our methodological approach provides insights into the sources of heterogeneity in treatment effects. We estimate an average treatment effect (ATE) of up to -7.1% for houses within a one-kilometer radius of a wind turbine, an effect that fades to zero at a distance of 8 to 9 km. Old houses and those in rural areas are affected the most, while home prices in urban areas are hardly affected. These results highlight that substantial local externalities are associated with wind power plants. |
| Keywords: | wind power,hedonic price model |
| JEL: | Q21 D12 R31 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:791&r=all |
| By: | Elisabetta Cornago (OECD); Alexandros Dimitropoulos (OECD); Walid Oueslati (OECD) |
| Abstract: | The purpose of this study is to investigate the effect of congestion pricing on the demand for clean transport modes. To this end, it draws on an empirical analysis of the effect of Milan’s congestion charge on the use of bike sharing. The analysis indicates that congestion pricing increases daily bike-sharing use by at least 5% in the short term. Extending the schedule of the congestion charge in the early evening increases bike-sharing use in the affected time window by 12%. The impact of the policy on bike-sharing use mainly occurs through the reduction of road traffic congestion, which makes cycling safer and more pleasant. The findings of the study indicate that policies aiming to reduce car use also have positive repercussions on the uptake of green mobility options. Relying solely on direct incentives for cycling, which often involve infrastructure projects, is likely insufficient to remove barriers to bike use. |
| Keywords: | bike sharing, Congestion pricing, sustainable mobility, urban road pricing |
| JEL: | Q58 R41 R48 |
| Date: | 2019–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:143-en&r=all |
| By: | Lorena M. D’Agostino (Department of Economics and Management, University of Trento, via Inama, 5 - 38122 Trento (Italy). Tel. +390461283197 – Fax +390461882241.); Rosina Moreno (AQR-IREA Research Group, University of Barcelona. Av. Diagonal 690 - 08034 Barcelona (Spain). Tel. +34934021823 - Fax +34934021821.) |
| Abstract: | Technological innovation is essential to achieve simultaneously economic, environmental and social goals (i.e. the green growth). Indeed, many studies found that environmental innovation spurs overall innovation. However, this topic has not been investigated by taking into account the geographical context. Therefore, our paper seeks to investigate whether ‘green regions’, with an increased public and private commitment in environmental issues, are related to innovation of local firms. Using data on Spanish manufacturing firms and regions, we find that environmental technologies (especially in green energy), environmental investments, and environmental management at the level of regions are positively associated to local firms’ innovation. |
| Keywords: | innovation, region, firm, green patents, environment. JEL classification:R11, O31, O44. |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:201903&r=all |
| By: | Louis-Gaëtan Giraudet (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); Cyril Bourgeois (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); Philippe Quirion (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); David Glotin (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) |
| Date: | 2018–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-01955954&r=all |
| By: | Thema, Johannes; Thema, Martin |
| Abstract: | Mit fortschreitender Energiewende steigt der Anteil erneuerbarer Energien im Strommix. Deren Angebot variiert im Tagesverlauf, nach Wetterlage und saisonal. Um Angebot und Nachfrage zur Deckung zu bringen, benötigt es daher Speicher mit großen Kapazitäten. Von allen technologischen Optionen mit großer Speicherkapazität sind Wasser-Pumpspeicherwerke die einzige, die langjährig erprobt und wirtschaftlich ist. Diese könnten in Braunkohletagebauen, welche im Zuge der Energiewende aufgegeben werden, errichtet werden. Unsere Überschlagsrechnung am Beispiel eines Pumpspeicherwerks in den heutigen Tagebauen Hambach, Garzweiler und Inden zeigt, dass diese mit bis zu 400 GWh ein signifikantes technisches Speicherpotenzial haben. Dies entspricht etwa der kontinuierlichen Maximalleistung eines Kernkraftwerks über zwei Wochen. Im Kontext der Diskussion um den Braunkohleausstieg skizziert das Papier ein netzdienliches Nachnutzungskonzept für Braunkohletagebaue, das zumindest für einen Teil der heute in der Kohleförderung und -Verstromung Beschäftigten mögliche Zukunftsperspektiven bietet. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuppap:194&r=all |