nep-ene New Economics Papers
on Energy Economics
Issue of 2019‒03‒04
29 papers chosen by
Roger Fouquet
London School of Economics

  1. Decomposition analysis of air pollution abatement in China: Empirical study for ten industrial sectors from 1998 to 2009 By Fujii, Hidemichi; Managi, Shunsuke; Kaneko, Shinji
  2. The Moderating Effect of Fuel Prices On the Market Value of Fuel Efficiency, Driving Intensity, and Co2 Emissions By Klapper, Daniel; Pleshcheva, Vlada
  3. Are Consumers Attentive to Local Energy Costs? Evidence from the Appliance Market By Sébastien Houde; Erica Myers
  4. Experimental Evidence on the Effect of Information and Pricing on Residential Electricity Consumption By Jesse Burkhardt; Kenneth Gillingham; Praveen K. Kopalle
  5. Prices vs. percentages: Use of tradable green certificates as an instrument of greenhouse gas mitigation By Heimvik, Arild; Amundsen, Eirik S.
  6. Corporate entrepreneurship and sustainability transitions: resource redeployment of oil and gas industry firms in floating wind power By Tuukka Mäkitie
  7. Hourly demand for electricity in Sweden: Implications for load, welfare and emissions By Karimu, Amin; Kiran B. Krishnamurthy, Chandra; Vesterberg, Mattias
  8. The Reformed EU ETS - Intertemporal Emission Trading with Restricted Banking By Bocklet, Johanna; Hintermayer, Martin; Schmidt, Lukas; Wildgrube, Theresa
  9. Technology heterogeneity in European industries' energy efficiency performance. The role of climate, greenhouse gases, path dependence and energy mix. By Kounetas, Konstantinos; Stergiou, Eirini
  10. Defining and measuring energy poverty in Poland By Jakub Sokolowski; Aneta Kielczewska; Piotr Lewandowski
  11. Meeting Global Cooling Demand with Photovoltaics during the 21st Century By Hannu S. Laine; Jyri Salpakari; Erin E. Looney; Hele Savin; Ian Marius Peters; Tonio Buonassisi
  12. Mean-field moral hazard for optimal energy demand response management By Romuald Elie; Emma Hubert; Thibaut Mastrolia; Dylan Possama\"i
  13. Oil Prices and Exchange Rate with Impact of Pre-Dollar and Post-Dollar Regime Dummies By Ahmed, Syed Shujaat
  14. Approaches to tariff regulation in the field of natural monopolies: the evolution of world practice By Kurdin, Alexander (Курдин, Александр)
  15. Natural resources volatility and economic growth: evidence from the resource-rich region By Hayat, Arshad; Tahir, Muhammad
  16. Biofuels and food security: Evidence from Indonesia and Mexico By Mohamed Boly; Aïcha Sanou
  17. Does the exogeneity of oil prices matter in the oil price-macro-economy relationship for Ghana? By Zankawah, Mutawakil M.; Stewart, Chris
  18. Crude oil futures trading and uncertainty By Robert Czudaj
  19. Environmental Policy on the Back of an Envelope: A Cobb-Douglas Model is Not Just a Teaching Tool By Don Fullerton; Chi L. Ta
  20. On the Principles of Commodity Taxation under Interregional Externalities By Fabio Antoniou; Panos Hatzipanayotou; Michael S. Michael; Nikos Tsakiris
  21. Can reducing carbon emissions improve economic performance? Evidence from China By Yang, Fei; Shi, Beibei; Xu, Ming; Feng, Chen
  22. US-Brazil Bilateral Fuel Ethanol Trade By Hall, Scott Wayne; Reed, Michael
  23. The Impact of Prices of Oil, Currency, and Capital on Food Prices: An Empirical Evidence from the Panel VAR Analysis By Radmehr, Riza (1,2); Henneberry, Shida Rastegari
  24. Recovering bioenergy in Sub-Saharan Africa: gender dimensions, lessons and challenges By Njenga, M.; Mendum, R.
  25. Expansion of GLADIS for Modeling Next Generation Bioproduct and Bioenergy Market Logistics By Calderon Ambelis, Heydi; Buser, Michael; Holcomb, Rodney; Craige, Collin; Buser, Guy
  26. Attitudes, preferences, and intentions of German households concerning participation in peer-to-peer electricity trading By Hackbarth, André
  27. Production Efficiency of Nodal and Zonal Pricing in Imperfectly Competitive Electricity Markets By Sarfati, Mahir; Hesamzadeh, Mohammed Reza; Holmberg, Pär
  28. CSR and Local Development in Oil Industry in Nigeria By Hervé Lado
  29. Producers' Willingness to Provide Crop Residue for Bioenergy Production By Salifu, Abdul Wahab; Gedikoglu, Haluk; Parcell, Joseph

  1. By: Fujii, Hidemichi; Managi, Shunsuke; Kaneko, Shinji
    Abstract: This study analyzes air pollutant substances management in Chinese industrial sectors from 1998 to 2009. Decomposition analysis applying the logarithmic mean divisia index is used to analyze changes in air pollutant substances emissions by the following five factors: coal pollution intensity (CPI), end-of-pipe treatment (EOP), energy mix (EM), productive efficiency change (EFF), and production scale changes (PSC). We focus on the three pollutants which are sulfur dioxide (SO2), dust substance, and soot substance. We clarify SO2 emissions from Chinese industrial sectors have increased because of the increase in the production scale. However, the inducing EOP equipment and improvements in energy efficiency have prevented an increase in SO2 emissions commensurate with the production increasing. Second, soot emissions were successfully reduced and controlled in all industries except the steel industry between 1998 and 2009, even though the production scale expanded for these industries. This reduction is achieved because of improvements in the EOP equipment technology and in energy efficiency. Finally, dust emissions decreased by nearly 65% between 1998 and 2009 in the Chinese industrial sectors. This successful emissions reduction was achieved by implementing EOP and pollution prevention activities during the production processes, especially in the cement industry. We clarify that pollution prevention effect in cement industry is mainly caused by production technological development rather than scale merit.
    Keywords: Sustainable industrial production; Pollution prevention; End-of-pipe; Air pollution; Scale merit; China
    JEL: Q01 Q53 Q56
    Date: 2019
  2. By: Klapper, Daniel (Institute for Marketing Humboldt-University Berlin); Pleshcheva, Vlada (Institute for Marketing Humboldt-University Berlin)
    Abstract: In the current paper, we quantify the effect that fuel prices have on vehicle prices\' responsiveness to fuel economy. We apply a hedonic price model to the German automobile market by using data on detailed technical specifications of high-sales vehicles of three sequential model years. In the contribution to previous research, our specification enables us to distinguish between consumers\' valuation of fuel economy versus their reaction to changes in fuel prices. Two sources of changes in consumers\' willingness-to-pay for better fuel economy are discussed - changes in the budget for driving a car and changes in capital investments in better car quality. We also discuss the subsequent changes in the optimal driving intensity and the resulting carbon dioxide emissions. Differences in the effects are studied for various car makes of both diesel and gasoline engines.
    Keywords: co2 emissions; fuel economy; fuel prices; hedonic regression;
    JEL: D12 L62 Q41 Q51
    Date: 2019–02–23
  3. By: Sébastien Houde; Erica Myers
    Abstract: We estimate whether consumers respond to local energy costs when purchasing appliances. Using a dataset from an appliance retailer, we compare demand responsiveness to a measure of energy costs that varies with local energy prices versus purchase prices. We strongly reject that consumers are unresponsive to local energy costs under a wide range of assumptions. These findings run counter to the popular wisdom, which motivates energy standards, that energy costs are a shrouded attribute. Capital investments are an important channel for electricity demand response and may explain some of the large differences between short and long run electricity price elasticities.
    JEL: D12 D83 Q41 Q50
    Date: 2019–02
  4. By: Jesse Burkhardt; Kenneth Gillingham; Praveen K. Kopalle
    Abstract: This study examines a field experiment in Texas that includes pricing and informational interventions to encourage energy conservation during summer peak load days when the social cost of generation is the highest. We estimate that our critical peak pricing intervention reduces electricity consumption by 14%. Using unique high frequency appliance-level data, we can attribute 74% of this response to air conditioning. In contrast, we find minimal response to active information provision and conservation appeals. A complementary experimental program also lowers nighttime prices during the off-peak season, providing the first evidence of electric vehicle loadshifting in response to price.
    JEL: D83 L94 L98 Q41 Q48
    Date: 2019–02
  5. By: Heimvik, Arild (University of Bergen, Department of Economics); Amundsen, Eirik S. (University of Bergen, Department of Economics)
    Abstract: The paper analyzes the problem of achieving a target path of emission reductions in the electricity sector, using a scheme of tradable green certificates (TGC). There are two types of generation, renewable and fossil. The latter causes the emissions. The paper also examines effects from emission regulation on construction of new renewable generation capacity. Outcomes are compared with an emission fee and a subsidy. The analytical results are simulated with a numerical model and social surplus are calculated for the different instruments. Two versions of the percentage requirement are devised for the TGC scheme. Results show that the target path of emission reductions is achievable, but incentives for new renewable generation capacity will be sub-optimal, regardless of the version of the percentage requirement. The TGC scheme is neither the most accurate nor the most cost-efficient, instrument but it does lead to a smaller reduction of social surplus than a subsidy.
    Keywords: Emission regulation; energy policy; green certificates; Pigouvian taxes; subsidies
    JEL: C70 Q24 Q42 Q48
    Date: 2019–02–14
  6. By: Tuukka Mäkitie (TIK Center for Technology, Innovation and Culture, University of Oslo)
    Abstract: Established firms are often described passive in the development of clean technologies. However, it has been recently argued that the vast resources of established firms could also accelerate sustainability transitions e.g. in the energy sector. This paper contributes to the study of sustainability transitions and corporate entrepreneurship by investigating resource redeployment of three Norwegian oil and gas industry firms in corporate ventures in floating offshore wind power technologies. Using interview and document data, the findings show that the opportunity to use existing firm resources was a key motivation for the firms to engage in entrepreneurship in such technologies. Moreover, the firms could use their specialized and general-purpose resources in their entrepreneurial ventures, and could develop new technologies on the basis of their existing resources. This paper thus suggests that the process of resource redeployment can help to explain why, and describe how, established firms may engage in corporate entrepreneurship in new cleantech.
    Date: 2019–02
  7. By: Karimu, Amin (CERE - the Center for Environmental and Resource Economics); Kiran B. Krishnamurthy, Chandra (CERE - the Center for Environmental and Resource Economics); Vesterberg, Mattias (CERE - the Center for Environmental and Resource Economics)
    Abstract: In this study, using sub-hourly appliance-level data from a representative sample of Swedish households on standard tariffs, we investigate the welfare and emission implications of moving to a mandatory dynamic pricing scheme. We treat demand during different hours of a day to affect utility differently, and account for the derived nature of electricity demand by explicitly considering the services (end-use demands) that drive hourly electricity demand. We use the flexible EASI demand system, which accommodates both observed and unobserved heterogeneity in preferences, to understand changes in load consequent to moving to dynamic pricing schemes. We find changes in load patterns across hours to be relatively small (with at most a three percent reduction during the morning peak, and a two percent increase in the off-peak times), and welfare and emissions to decrease slightly (a maximum of 0.2 percent and 0.25 percent, respectively). Overall, in the context of a decentralized electricity retail setting such as in Sweden, our results call into question both the desirability (from a short-run welfare perspective) or the feasibility (from a consumer perspective) of the emphasis on ensuring that the retail price of electricity be aligned to the hourly marginal cost.
    Keywords: Appliance holdings; Electricity; Energy demand; Demand system; Dynamic pricing
    JEL: C30 D12 Q41
    Date: 2019–02–22
  8. By: Bocklet, Johanna (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Hintermayer, Martin (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Schmidt, Lukas (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Wildgrube, Theresa (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: With the increase of the linear reduction factor (LRF), the implementation of the market stability reserve (MSR) and the introduction of the cancellation mechanism (CM), the EU ETS changed fundamentally. We develop a discrete time model of the intertemporal allowance market that accurately depicts these reforms assuming that prices develop with the Hotelling rule as long as the TNAC is non-empty. A sensitivity analysis ensures the robustness of the model results regarding its input parameters. The accurate modelling of the EU ETS allows for a decomposition of the effects of the individual amendments and the evaluation of the dynamic efficiency. The MSR shifts emissions to the future but is allowance preserving. The CM reduces the overall emission cap, increasing allowance prices in the long run, but does not significantly impact the emission and price path in the short run. The increased LRF leads with 9 billion cancelled allowances to a stronger reduction than the CM and is therefore the main price driver of the reform.
    Keywords: Market Stability Reserve; Dynamic Optimization; Cap and Trade; EU ETS; Cancellation Mechanism; Intertemporal Trading
    JEL: C61 H23 H41 L52 P14 Q48 Q54 Q58
    Date: 2019–02–25
  9. By: Kounetas, Konstantinos; Stergiou, Eirini
    Abstract: Assessment of industrial-level energy efficiency development is a critical research topic that has infiltrated in the global battle against climate change. A balanced panel of fourteen European industries from twenty-four countries for the period 1995-2011 is introduced into a metafrontier framework. Reflecting the divergent views on the importance of desirable and undesirable outcomes in the pursuit of energy efficiency, the proposed approach estimate industrial performance by prioritizing either economic or environmental criterion incorporating technological heterogeneity. It is found that small-scale economies exhibit persistent high energy efficiency scores. Regarding energy efficiency determinants, path dependence phenomena have a strong presence, climate characteristics occurs, while energy mix displays linear but also non-linear relationships. Finally, regardless of the method employed, there is a strong evidence of conditional and unconditional convergence.
    Keywords: European industries, Energy efficiency, Technology heterogeneity,Directional distance function, Energy mix, Path dependence, Convergence.
    JEL: D24 D29 Q40 Q49
    Date: 2019–01–03
  10. By: Jakub Sokolowski; Aneta Kielczewska; Piotr Lewandowski
    Abstract: The EU Member States are obliged to assess the scale of energy poverty in their respective national contexts. We propose a new definition of energy poverty in Poland, with different levels of specificity corresponding to the needs of different levels of administration. We also propose a set of five indicators for measuring energy poverty based on data from the Polish Household Budget Survey. Two expenditure-based indicators identify energy-poor households: a modified version of the Low Income High Cost indicator and an indicator based on actual energy expenditures. Three self-reported indicators related to financial capability, the physical condition of the dwelling, and the subjective level of thermal comfort are used to measure the severity of energy poverty. We find that all five indicators show that the older the dwelling is, the higher the risk of energy poverty is. Moreover, while the expenditure-based measures show that households living in detached houses have higher energy poverty rates than households living in multifamily buildings, the thermal comfort indicator shows the opposite relationship. Households living in dwellings without central heating are at a higher risk of energy poverty, according to all self-reported indicators.
    Keywords: fuel poverty, LIHC, thermal comfort, energy affordability
    JEL: I32 Q40 R29
    Date: 2019–01
  11. By: Hannu S. Laine; Jyri Salpakari; Erin E. Looney; Hele Savin; Ian Marius Peters; Tonio Buonassisi
    Abstract: Space conditioning, and cooling in particular, is a key factor in human productivity and well-being across the globe. During the 21st century, global cooling demand is expected to grow significantly due to the increase in wealth and population in sunny nations across the globe and the advance of global warming. The same locations that see high demand for cooling are also ideal for electricity generation via photovoltaics (PV). Despite the apparent synergy between cooling demand and PV generation, the potential of the cooling sector to sustain PV generation has not been assessed on a global scale. Here, we perform a global assessment of increased PV electricity adoption enabled by the residential cooling sector during the 21st century. Already today, utilizing PV production for cooling could facilitate an additional installed PV capacity of approximately 540 GW, more than the global PV capacity of today. Using established scenarios of population and income growth, as well as accounting for future global warming, we further project that the global residential cooling sector could sustain an added PV capacity between 20-200 GW each year for most of the 21st century, on par with the current global manufacturing capacity of 100 GW. Furthermore, we find that without storage, PV could directly power approximately 50% of cooling demand, and that this fraction is set to increase from 49% to 56% during the 21st century, as cooling demand grows in locations where PV and cooling have a higher synergy. With this geographic shift in demand, the potential of distributed storage also grows. We simulate that with a 1 m$^3$ water-based latent thermal storage per household, the fraction of cooling demand met with PV would increase from 55% to 70% during the century. These results show that the synergy between cooling and PV is notable and could significantly accelerate the growth of the global PV industry.
    Date: 2019–02
  12. By: Romuald Elie; Emma Hubert; Thibaut Mastrolia; Dylan Possama\"i
    Abstract: We study the problem of demand response contracts in electricity markets by quantifying the impact of considering a mean-field of consumers, whose consumption is impacted by a common noise. We formulate the problem as a Principal-Agent problem with moral hazard in which the Principal - she - is an electricity producer who observes continuously the consumption of a continuum of risk-averse consumers, and designs contracts in order to reduce her production costs. More precisely, the producer incentivises the consumers to reduce the average and the volatility of their consumption in different usages, without observing the efforts they make. We prove that the producer can benefit from considering the mean-field of consumers by indexing contracts on the consumption of one Agent and aggregate consumption statistics from the distribution of the entire population of consumers. In the case of linear energy valuation, we provide closed-form expression for this new type of optimal contracts that maximises the utility of the producer. In most cases, we show that this new type of contracts allows the Principal to choose the risks she wants to bear, and to reduce the problem at hand to an uncorrelated one.
    Date: 2019–02
  13. By: Ahmed, Syed Shujaat
    Abstract: This study explains the relationship between oil prices and exchange rate of Pakistan in the time when Pakistan didn’t adopt for dollar and when Pakistan adopted for dollar as standard currency. By following the approach used by (Meese and Rogoff, 1988) and (Throop,1993) Interest Rate Parity has been used to construct a model by using exchange rate of Pakistan, Dubai crude oil price and interest rate differential from period of 1970m-1 to 2017m05. Results of the analysis shows that all variable are found to be integrated at level after application of Bealieu and Miron Seasonal Unit Root test. Results of the relationship between oil prices and exchange rate show that oil price is impacting exchange rate positively, while interest rate differential is negatively influencing the exchange rate. While examining the results for impact of change in regime on exchange rate, structural shifts were prominent during managed floating regime and floating regime which were causing Changes in the exchange rate policies.
    Keywords: Interest rate parity, exchange rate regime, regime switching, structural shift , Dubai crude oil price.
    JEL: E43 F0 Z0
    Date: 2019–02–21
  14. By: Kurdin, Alexander (Курдин, Александр) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The paper reflects the systematization and historical analysis of approaches to the regulation of natural monopolies that have been used in the United States and Europe over the past century. The focus is on the oil and gas sector, electric power industry and rail transportation as the largest areas of activity of natural monopolies. The study of international experience allows us to identify trends in the development of regulation of natural monopolies and assess the prospects for applying this experience to Russian enterprises.
    Date: 2019–01
  15. By: Hayat, Arshad; Tahir, Muhammad
    Abstract: This research paper investigates the impact of natural resources’ volatility on economic growth. The paper focused on three resources rich economies namely; UAE, Saudi Arabia, and Oman. Using data from 1970 to 2016 and employing the autoregressive distributed lag (ARDL) cointegration approach developed by Pesaran, Shin, and Smith (2001), we found that both natural resources and their volatility matters from the growth perspective. The study found strong evidence in favor of a positive and statistically significant relationship between the natural resource and economic growth for the economy of UAE and Saudi Arabia. Similarly, for the economy of Oman, a positive but insignificant relationship is observed between natural resources and economic growth. However, we found that the volatility of natural resources has a statistically significant negative impact on the economic growth of all three economies. This study contradicts the traditional concept of resources curse and provides evidence of resources curse in the form of a negative impact of volatility on economic growth.
    Keywords: Natural Resources, Volatility, Economic Growth, ARDL Modeling, GCC
    JEL: O4 Q33
    Date: 2019
  16. By: Mohamed Boly (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Aïcha Sanou (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We analyze food security effects of biofuel production by using the synthetic control method. This retrospective and graphical analysis focuses on Indonesia and Mexico from 2000 to 2013. Indonesia is a major biodiesel producer while Mexico is specialized in maize and ethanol. Our findings show that biodiesel production positively affects food security through the increase in daily per capita energy consumption and food production index, but we observe the reverse effect for bioethanol. After the adoption of biofuels, the gap between Indonesia and its counter-factual allows us to conclude that biodiesel production does not harm food security. This could be explained by the fact that biodiesel production uses some feedstocks which do not directly compete with food crops; moreover, biodiesel exports generate revenues which are allocated to food imports. However, the gap between Mexico and its counter-factual suggests that bioethanol production leads to a reduction in food security, this because it uses maize which is the staple food of many Mexicans. Furthermore, Mexican ethanol exports compete with that of the U.S. Our results are robust to several falsification tests.
    Keywords: Food security,Biofuels,Impact assessment
    Date: 2019–02–14
  17. By: Zankawah, Mutawakil M. (Kingston University London); Stewart, Chris (Kingston University London)
    Abstract: Using annual data from 1971 to 2014 we consider whether the relationship between crude oil prices and the macro-economy in the relatively small economy of Ghana is affected by the treatment of crude oil prices as exogenous or endogenous. We use vector autoregressions, vector error-correction models, scenario-based dynamic forecasting, and autoregressive distributive lag specifications. There is little evidence that international crude oil prices have a significant negative effect on Ghana’s output in either the short-run and long-run, regardless of whether crude oil prices are treated as exogenous or endogenous. This implies that increases in crude oil prices do not put a binding constraint on the monetary authorities to loosen monetary policy to offset its adverse effect on output. If inflation is a priority, policy makers could focus on inflation stabilization by tightening monetary policy when oil prices rise.
    Keywords: Ghana; oil prices; exogeneity; macro-economy
    JEL: C32 F31 F41
    Date: 2019–02–25
  18. By: Robert Czudaj (Department of Economics, Chemnitz University of Technology)
    Abstract: This paper examines the effect of different dimensions of uncertainty on expectations of WTI crude oil futures momentum traders at a daily level. We consider two concepts of uncertainty and two momentum trading indicators based on technical analysis. In addition, we also use wavelet techniques to decompose crude oil futures prices into different frequencies accounting for investors’ sentiment at various horizons. To allow for different effects on the propagation mechanism of uncertainty shocks, we apply a time-varying Bayesian VAR approach. Our ï¬ nd- ings indicate that both measures of uncertainty affect momentum trading on the crude oil futures market in several periods, especially during the great recession between 2007 and 2009. For the decomposed futures prices our results also show that the reaction to uncertainty differs sub- stantially across frequencies. High frequencies exhibit a very short-lived reaction to uncertainty while low frequencies show a persistent reaction to uncertainty shocks.
    Keywords: Medical spending, Grossman model, Extreme Bounds Analysis, OECD panel
    JEL: C12 C23 I10 I12
    Date: 2019–01
  19. By: Don Fullerton; Chi L. Ta
    Abstract: To clarify and interpret the workings of a large computable general equilibrium (CGE) model of environmental policy in the U.S., we build an aggregated Cobb-Douglas (CD) model that can be solved easily and analytically. Its closed-form expressions show exactly how key parameters determine the sign and size of effects from a large new carbon tax on emissions, revenue, prices, output, and welfare. Data and parameters from the detailed, dynamic CGE model of Goulder and Hafstead (2018) are used in the CD model to calculate results that can be compared with theirs. Results from the CD model track those from the large CGE model quite closely, even though the CD model omits much detail such as the number of sectors, intermediate inputs, and international trade. A CGE model is quite useful to generate detailed numerical results and to reflect on particular aspects of environmental policy, but the simpler CD model provides a transparent view of exactly how the policy affects key outcomes.
    JEL: H23 Q28 Q54
    Date: 2019–02
  20. By: Fabio Antoniou; Panos Hatzipanayotou; Michael S. Michael; Nikos Tsakiris
    Abstract: We examine the efficiency of decentralized commodity taxation where consumption tax revenue finances public sector activities related to interregional externalities. We consider two cases; tax revenue finances (i) public pollution abatement in the presence of consumption generated transboundary pollution, and (ii) the provision of an interregional public consumption good, in the absence of pollution. The key result of our study is that in either case, non-cooperative equilibrium origin-based consumption taxes are efficient, while destination-based taxes are not. When consumption tax revenue is lump-sum distributed, neither type of consumption taxes is efficient.
    Keywords: Commodity taxation, Origin principle, Destination principle, Interregional externalities, Efficiency, Public goods
    JEL: H21 H23 H41
    Date: 2019–02
  21. By: Yang, Fei; Shi, Beibei; Xu, Ming; Feng, Chen
    Abstract: As the problem of carbon emissions is becoming increasingly more serious around the world, how to balance carbon emissions reduction and economic growth has become an important issue in the field of ecological economics. China is the world's largest carbon dioxide emitter, and China's Low-Carbon Pilot (CLCP) policy has significantly reduced carbon dioxide emissions and achieved expected benefits. However, is environmental quality improving at the expense of economic growth? Based on panel data from 286 Chinese prefecture-level cities and from Chinese micro-industrial enterprises from 2001 to 2013, this article focuses on the causal effect of environmental policy on regional economic growth and the benefits and changes in the behavior of enterprises through a quasi-natural experiment and the difference-in-differences (DID) method. The results are as follows. First, the CLCP policy significantly promotes regional economic growth. Moreover, as the implementation time of the policy continues, environmental regulation has a greater effect of promoting economic growth. Second, although the CLCP policy significantly increases various production costs, it also promotes the growth of enterprises' output and benefits. Third, under the pressure of the significant increase in enterprise cost caused by environmental regulation, enterprises choose the positive way of strengthening internal management, improving efficiency and increasing innovation instead of choosing the negative way of trans-regional transfer to exit the market; accordingly, enterprises finally achieve an improvement in output and benefits.
    Keywords: CLCP policy,economic growth,behavior of enterprise,DID
    JEL: O12 O13 Q38
    Date: 2019
  22. By: Hall, Scott Wayne; Reed, Michael
    Keywords: International Relations/Trade
    Date: 2019–02
  23. By: Radmehr, Riza (1,2); Henneberry, Shida Rastegari
    Keywords: Demand and Price Analysis, Agricultural and Food Policy, Research Methods/Statistical Methods
    Date: 2019–02
  24. By: Njenga, M.; Mendum, R.
    Abstract: There is a strong link between gender and energy in view of food preparation and the acquisition of fuel, especially in rural areas. This is demonstrated in a range of case studies from East and West Africa, where biochar, human waste and other waste resources have been used to produce briquettes or biogas as additional high-quality fuel sources. The synthesis of the cases concludes that resource recovery and reuse for energy offers an alternative to conventional centralized grid projects which, while attractive to investors and large-scale enterprises, do not necessarily provide job opportunities for marginalized communities. Reusing locally available waste materials for energy production and as soil ameliorant (in the case of biochar) in small enterprises allows women and youth who lack business capital to begin modest, locally viable businesses. The case studies offer concrete examples of small-scale solutions to energy poverty that can make a significant difference to the lives of women and their communities.
    Keywords: Community/Rural/Urban Development, Consumer/Household Economics, Farm Management, Financial Economics, Industrial Organization, Labor and Human Capital, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy
    Date: 2018–02–26
  25. By: Calderon Ambelis, Heydi; Buser, Michael; Holcomb, Rodney; Craige, Collin; Buser, Guy
    Keywords: Agribusiness, Industrial Organization, Research and Development/Tech Change/Emerging Technologies, Productivity Analysis
    Date: 2019–02
  26. By: Hackbarth, André
    Abstract: Based on a survey among customers of seven German municipal utilities, we estimate hierarchical multiple regression models to identify consumer motivations for participating in P2P electricity trading and develop implications for marketing strategies for this currently relatively unknown product. Our results show a low importance of socio-demographics in explaining differences between consumer groups, but high influence of attitudes, knowledge and likelihood to purchase related products. The most valuable target groups for P2P electricity trading marketing strategies of municipal utilities first and foremost should aim at are innovators, especially prosumers. They are well-informed about and open-minded concerning electricity sharing and highly environmentally aware. They ask for transparency and are willing to purchase related products. They are attracted by the ability to share generation and consumption and to a lesser extent by economic reasons. Our results indicate that the marketing efforts should to a special degree take peer effects into account, as they are found to wield great influence on general openness towards and purchase intention for P2P electricity products. Finally, municipal utilities should build on the high level of satisfaction and trust of consumers and use P2P electricity trading as measure to keep and win customers willing to change their supplier.
    Date: 2018
  27. By: Sarfati, Mahir (Royal Institute of Technology (KTH)); Hesamzadeh, Mohammed Reza (Royal Institute of Technology (KTH)); Holmberg, Pär (Research Institute of Industrial Economics (IFN))
    Abstract: Electricity markets employ different congestion management methods to handle the limited transmission capacity of the power system. This paper compares production efficiency and other aspects of nodal and zonal pricing. We consider two types of zonal pricing: zonal pricing with Available Transmission Capacity (ATC) and zonal pricing with Flow-Based Market Coupling (FBMC). We develop a mathematical model to study the imperfect competition under zonal pricing with FBMC. Zonal pricing with FBMC is employed in two stages, a day-ahead market stage and a re-dispatch stage. We show that the optimality conditions and market clearing conditions can be reformulated as a mixed integer linear program (MILP), which is straightforward to implement. Zonal pricing with ATC and nodal pricing is used as our benchmarks. The imperfect competition under zonal pricing with ATC and nodal pricing are also formulated as MILP models. All MILP models are demonstrated on 6-node and the modified IEEE 24-node systems. Our numerical results show that the zonal pricing with ATC results in large production inefficiencies due to the inc-dec game. Improving the representation of the transmission network as in the zonal pricing with FBMC mitigates the inc-dec game.
    Keywords: Congestion management; Zonal pricing; Flow-based market coupling
    JEL: C61 C72 D43 L13 L94
    Date: 2019–02–15
  28. By: Hervé Lado (CODEV entreprise et développement - ESSEC Business School - ESSEC Business School)
    Abstract: The institutional theory of corporate social responsibility (CSR) argues that content and practice of CSR adapt to the institutional environment. In the oil industry in Nigeria, and more widely in developing countries where institutions work on a personalized mode, with a dominant coalition made of powerful elites manipulating rents and privileges to ensure stability, CSR also adapts. Using the crypto-morality concept, we demonstrate that in such institutional environments, CSR evolves according to both the detectability of corporate practices, and penalties that stakeholders impose to corporations. Therefore, the corporate contribution to local development as part of CSR aims mainly to meet legitimate and illegitimate expectations of the most influential stakeholders in order to protect company's operations.
    Abstract: La théorie institutionnelle de la responsabilité sociétale des entreprises (RSE) soutient que le contenu et la pratique de la RSE s'adaptent à l'environnement institutionnel. Dans l'industrie pétrolière au Nigeria, et plus largement dans les pays en développement où les institutions fonctionnent sur un mode personnalisé avec une coalition dominante formée d'élites puissantes qui manipulent rentes et privilèges pour assurer la stabilité, la RSE s'adapte également. Nous démontrons, à l'aide du concept de crypto-moralité, que dans un tel environnement institutionnel, la RSE évolue en fonction de la détectabilité des pratiques de l'entreprise par les parties prenantes et des pénalités que ces dernières lui imposent. De fait, l'appui du développement local au titre de la RSE vise alors fondamentalement à répondre aux attentes à la fois légitimes et illégitimes des parties prenantes les plus influentes dans le but d'assurer la poursuite ininterrompue des opérations de l'entreprise.
    Date: 2019–02–03
  29. By: Salifu, Abdul Wahab; Gedikoglu, Haluk; Parcell, Joseph
    Keywords: Demand and Price Analysis, Environmental Economics and Policy, Productivity Analysis, Research and Development/Tech Change/Emerging Technologies
    Date: 2019–02

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