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on Energy Economics |
| By: | Cyril Bourgeois (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech); Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - CNRS - Centre National de la Recherche Scientifique - ENPC - École des Ponts ParisTech - CIRAD - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | As carbon taxes gain traction and grow tighter in OECD countries, the question of their recycling becomes crucial for political acceptance. Considering the impact of the French carbon tax in the residential sector, we examine the trade-offs between fuel poverty alleviation, energy savings and economic leverage for two revenue-recycling options-as a lump-sum payment or as a subsidy for energy efficiency improvement, each restricted to low-income households-defined as those belonging to the first two quantiles of the income distribution. We do so using Res-IRF, a highly detailed energy-economy model that interacts housing features (single vs. multi-family, energy efficiency, heating fuel) with key household characteristics (tenancy status, income of both owners and occupants). We find that the energy efficiency subsidy recycling is superior to the lump-sum payment in all respects; it even fully offsets the regressive effect of the carbon tax from 2025 onwards. No recycling, however, effectively addresses fuel poverty in private, rented housing. |
| Keywords: | carbon tax,revenue-recycling,building sector,fuel poverty,energy efficiency subsidies JEL codes: D63,H23,Q47 |
| Date: | 2019–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-02073964&r=all |
| By: | Jan Abrell (ZHAW Winterthur and ETH Zurich, Switzerland); Mirjam Kosch (ZHAW Winterthur and ETH Zurich, Switzerland); Sebastian Rausch (ETH Zurich, Switzerland) |
| Abstract: | Carbon taxes are commonly seen as a rational policy response to climate change, but little is known about their performance from an ex-post perspective. This paper analyzes the emissions and cost impacts of the UK CPS, a carbon tax levied on all fossil-fired power plants. To overcome the problem of a missing control group, we propose a novel approach for policy evaluation which leverages economic theory and machine learning techniques for counterfactual prediction. Our results indicate that in the period 2013-2016 the CPS lowered emissions by 6.2 percent at an average cost of € 18 per ton. We find substantial temporal heterogeneity in tax-induced impacts which stems from variation in relative fuel prices. An important implication for climate policy is that a higher carbon tax does not necessarily lead to higher emissions reductions or higher costs. |
| Keywords: | Climate Policy, Carbon Tax, Carbon Pricing, Electricity, Coal, Natural Gas, United Kingdom, Carbon Price Surcharge, Policy Evaluation, Causal Inference, Machine Learning |
| JEL: | C54 Q48 Q52 Q58 L94 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:19-317&r=all |
| By: | Witcover, Julie; Murphy, Colin |
| Abstract: | Highlights As part of the state’s overall strategy to reduce greenhouse gas (GHG) emissions, Oregon’s Clean Fuels Program (CFP)  aims to reduce transportation sector emissions by incentivizing innovation, technological development, and deployment of low-emission alternative fuels and vehicles. It is designed as a performance standard, rather than a prescriptive approach to emissions reduction. It sets an annual declining target in fuel carbon intensity (CI) with a goal of 10% reduction by 2025 relative to 2015 levels. The CFP has been in effect for three years, with relatively small but growing CI reduction targets of 0.25% in 2016, 0.5% in 2017, and 1.0% in 2018, with a 2019 CI target of 1.5%. The CFP had 163 registered parties and 283 transportation fuel pathways available for use as of the end of 2018. From 2016 through 2018 Q3, total emissions reduction requirements were 3 million metric tons (MMT) CO2e and reported emissions reductions were 1.8 MMT CO2e, representing overcompliance of over 421,000 tons CO2e and creating a systemwide “bank†of program credits (each representing 1 MT CO2e) that can be used to meet future targets. The program generated excess credits relative to deficits in every quarter through 2017. Data for 2018 lacked residential electricity credits at the time of writing. Without those, 2018 deficits exceeded credits by under 1,700, well below the 30,000 credits generated by residential electricity in 2017 Q1–Q3, and the about 29,000 credits for the same category that would be generated under 2018 standards given the same energy. Aggregate alternative fuel energy consumption remained approximately stable over the program period—the program’s operation thus far. Ethanol contributed the largest share of alternative fuel and remained between 10% and 11% by volume of blended gasoline, at or just above the “blendwall†of 10% blends, through the period. Between 2016 and 2017, the only two years of complete data, transport energy from fossil natural gas, biogas, propane, and non-residential electricity each grew by over 50%, and from biodiesel grew by over 7%. The average annual CI rating for most reported alternative fuels declined between 2016 and 2018 through Q3, including the biggest volume contributors, ethanol (just under 1.5% decline) and biodiesel (just over 17% decline). Prices of CFP compliance credits (each representing 1 MT CO2e) remained in the $40–$50 range through 2016 and 2017. The yearly average increased to $84 in 2018 as volumes traded also rose. Data through March 2019 indicate an average price around $145. Oregon’s CFP shares some design similarities with California’s Low Carbon Fuel Standard (LCFS), but also has some differences in terms of program targets and baseline fuel blends, treatment of indirect land use change, residential electricity for electric-vehicle (EV) charging, and other credit generation and credit market elements. The programs, along with a similar policy in British Columbia, are part of the Pacific Coast Collaborative commitment to low carbon fuels and economies among these jurisdictions. Washington state is currently considering a similar clean fuel standard as part of its legislative process. |
| Keywords: | Engineering, Social and Behavioral Sciences, transportation, greenhouse gas emissions, sustainability, fuel policy |
| Date: | 2019–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt0ct4m7gs&r=all |
| By: | L. (Lisa B.) Ryan; Sarah La Monaca; Linda Mastrandrea; Petr Spodniak |
| Abstract: | Legacy electricity retail tariffs are ill-adapted to future electricity systems and markets, particularly with regard to accommodating the multi-faceted shift toward decarbonisation. We examine how retail tariffs need to be reformed to not only meet the future revenue requirements of energy-suppliers and networks but also to help achieve the environmental objectives of the energy transition. While existing literature has explored the link between retail tariff structure design, wholesale markets and/or network cost recovery, there is less recognition of the impact of tariff structure design on environmental objectives. This paper reviews the demand responsiveness of household customers to electricity prices and implications of retail tariff structure and design for the policy targets of CO2 emissions, energy efficiency, and renewable electricity generation, in addition to electricity system. A review of the literature provides a theoretical basis for price elasticity of demand and electricity retail tariff design, and we explore the environmental implications for future retail tariff design options via examples of various tariff structures in the EU and US. The research links the topics of emissions mitigation policy and market design, and should add empirical insights to the body of academic literature on future electricity markets. It should also be of interest to policy makers wishing to consider retail tariff structures that promote decarbonisation of the electricity system through multiple objectives of improved energy efficiency and increased shares of renewable electricity within future electricity markets. |
| Keywords: | Electricity systems; Decarbonisation; Energy transition; Retail tariff structure design |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:oapubs:10197/9911&r=all |
| By: | Marañón-Ledesma, Hector; Tomasgard, Asgeir |
| Abstract: | Short-term Electricity Demand Response (DR) is an emerging technology in Europe's Electricity markets that will introduce a new degree of flexibility. The objective of this work is to analyze to what extent the untapped DR potential can facilitate an optimal transition to an European low emission power system. The benefits of DR consists of a reduction in peak load consumption, which leads to reduction in capacity investments, production and consumption savings, reduced congestion phases, reliable integration of intermittent renewable resources and supply and demand flexibility. The capabilities of DR are studied in the European Model for Power Investment with (High Shares of) Renewable Energy (EMPIRE), which is an electricity sector model with a time span of 30 years ending in 2050. The model is two-stage stochastic that includes uncertainty at the operational level and energy economics dynamics at a strategic level. The main contribution of this article is designing the investment-operation DR module within the EMPIRE framework. It models several classes of shiftable and curtailable loads in residential, commercial and industrial sectors, including flexibility periods, operational costs and endogenous DR investments, for 31 European countries. The results show that DR capacity substitutes partially flexible supply side capacity from peak gas plants and battery storage, in addition to enabling more solar PV production. |
| Keywords: | Demand Response; Flexibility; Linear Stochastic Optimization; Demand Side Management; European Power System; Energy Economics |
| JEL: | C61 D81 L97 Q4 Q41 |
| Date: | 2019–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93341&r=all |
| By: | L. (Lisa B.) Ryan; Sarah La Monaca |
| Abstract: | Electrification of vehicle fleets, particularly in countries with increasing shares of renewable electricity supply, represents an important pathway toward low-carbon mobility. This report examines the role of electric vehicle (EV) charging infrastructure as a key enabler for EV uptake, and explores business models and policy approaches for promoting deployment. It then applies observed key principles to assess the Irish EV charging services market and identifies key recommendations for Irish policy. |
| Keywords: | Electric vehicles (EV); Low-carbon mobility; Irish policy |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:oapubs:10197/9912&r=all |
| By: | Frondel, Manuel; Horvath, Marco |
| Abstract: | As of late 2008, the steady decline of U.S. crude oil production over the last decades was reversed by the increased adoption of the hydraulic fracturing ("fracking") technology. Adapting the supply-side model proposed by Kaufmann et al. (2004) to assess OPEC's ability to influence real oil prices, this paper investigates the effect of the increase in U.S. oil production due to fracking on world oil prices. Among our key results obtained from (dynamic) OLS estimations, there is a statistically significant negative long-run relationship between increased U.S. oil production and oil prices. |
| Keywords: | dynamic OLS,error correction model,shale oil |
| JEL: | Q41 Q32 L71 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:794&r=all |
| By: | Humberto Llavador; John E. Roemer |
| Abstract: | Carbon budgets are a useful way to frame the climate mitigation challenge and much easier to agree upon than the allocation of emissions. We propose a mechanism with countries agreeing on the global carbon budget, while the decision to emit is decentralized at the country level. The revenue is collected in a global fund and allocated according to endogenously defined weights proportional to the marginal cost of climate change. The proposal features a unanimous agreement of the national citizenries of the world and global Pareto efficiency. We run a simulation in the spirit of the Paris Agreement, with zero emissions after 2055. At the Global Unanimity Equilibrium, permits are priced at 90$/tC, yielding 1.3 trillion dollars annually. Africa, India and the less developed countries in Asia are the only net recipients, while the US and China are the largest net contributors. |
| Keywords: | carbon budget, emissions, international agreement, permits, climate change |
| JEL: | Q54 Q56 Q58 F53 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:upf:upfgen:1646&r=all |
| By: | Arvind Shrivats; Sebastian Jaimungal |
| Abstract: | Solar Renewable Energy Certificate Markets (SREC) markets are a relatively novel market-based system to incentivize the production of energy from solar means. A regulator imposes a floor on the amount of energy each regulated firm must generate from solar power in a given period, providing them with certificates for each generated MWh. Firms offset these certificates against the floor, paying a penalty for any lacking certificates. Certificates are tradable assets, allowing firms to purchase/sell them freely. In this work, we formulate a stochastic control problem for generating and trading in SREC markets for a regulated firm's perspective accounting for generation and trading costs, and the impact both have on prices. We provide a characterisation of the optimal strategy using the stochastic maximum principle and develop a numerical algorithm to solve this control problem, Based on this numerical solution, we provide detail and intuition for the optimal strategy for a regulated firm. |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1904.06337&r=all |
| By: | Bartram, Sohnke M. (Warwick Business School - Department of Finance); Hou, Kewei (Ohio State University (OSU) - Department of Finance); Kim, Sehoon (University of Florida - Department of Finance, Insurance and Real Estate) |
| Abstract: | We document that localized policies designed to mitigate climate risk can lead to regulatory arbitrage by firms, resulting in unintended consequences. Using detailed plant level data, we investigate the impact of the most extensive regional climate policy in the United States, the California cap-and-trade program, on corporate real activities such as greenhouse gas emissions and plant ownership. We show that industrial plants governed by the policy reduce emissions in California when the parent company is financially constrained, but that these firms internally reallocate their emissions to plants located in other states. Similarly, constrained firms are more likely to reduce ownership in Californian plants and increase ownership in plants outside California. In contrast, unconstrained firms generally do not adjust plant emissions and ownership either in California or in other states. Overall, firms do not reduce their total emissions when part of their assets are affected by the regulation, but in fact increase them if financially constrained. The results document real spillover effects stemming from resource reallocations by constrained firms to avoid regulatory costs, undermining the effectiveness of localized policies. Our study has important implications for the current debate on global climate policy agreements. |
| JEL: | G18 G31 G32 Q52 Q54 Q58 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2019-04&r=all |
| By: | Richter, Philipp M.; Runkel, Marco; Schmidt, Robert C. |
| Abstract: | The loss of international competitiveness of domestic industries remains a key obstacle to the implementation of effective carbon prices in a world without harmonized climate policies. We analyze countries' non-cooperative choices of emissions taxes under imperfect competition and mobile polluting firms. In our general equilibrium setup with trade, wage effects prevent all firms from locating in the same country. While under local or no pollution countries achieve the first-best, under transboundary pollution taxes are inefficiently low and lower than under autarky where only the "standard" free-riding incentive distorts emissions taxes. This effect is more pronounced when polluting firms are mobile. |
| Keywords: | Strategic Environmental Policy,Firm Location,Carbon Leakage,General Equilibrium |
| JEL: | F12 F18 H23 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:tudcep:0219&r=all |
| By: | Ben-David, Itzhak (Ohio State University (OSU) - Department of Finance; National Bureau of Economic Research (NBER)); Kleimeier, Stefanie (Maastricht University - Department of Finance); Viehs, Michael (Oxford University Smith School of Enterprise and the Environment; European Centre for Corporate Engagement (ECCE)) |
| Abstract: | Despite awareness of the detrimental impact of CO2 pollution on the world climate, countries vary widely in how they design and enforce environmental laws. Using novel micro data about firms’ CO2 emissions levels in their home and foreign countries, we document that firms headquartered in countries with strict environmental policies perform their polluting activities abroad in countries with relatively weaker policies. These effects are stronger for firms in high-polluting industries and with poor corporate governance characteristics. Although firms export pollution, they nevertheless emit less overall CO2 globally in response to strict environmental policies at home. |
| JEL: | N50 O13 Q56 R11 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:ohidic:2018-20&r=all |
| By: | Melani Cammett (Harvard University); Ishac Diwan; Andrew Leber |
| Abstract: | When do autocratic rulers in oil-producing countries support private sector development? We argue that the size of oil rents per capita has an important effect on ruler support for the rule of law, respect for private property rights, and other factors that promote private investment. However, the effect is not linear, but instead resembles a U-curve: Only in countries with middle levels of per capita oil wealthwould we expect the state to repress the private sector. At both low and high levels of oil wealth, autocrats interested in regime preservation would support and promote the private sector. Descriptive analyses of governance measures in Middle Eastern oilproducerssituated in comparative perspective offer empirical support for these propositions. These arguments and findings contradict some of the key claims in the resource curse literature but also differ from arguments that offer historically grounded explanations for development among oil exporters. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:erg:wpaper:1299&r=all |
| By: | Schmalensee, Richard (Massachusetts Institute of Technology); Stavins, Robert N. (Harvard Kennedy School) |
| Abstract: | The U.S. Clean Air Act, passed in 1970 with strong bipartisan support, was the first environmental law to give the Federal government a serious regulatory role, established the architecture of the U.S. air pollution control system, and became a model for subsequent environmental laws in the United States and globally. We outline the Act's key provisions, as well as the main changes Congress has made to it over time. We assess the evolution of air pollution control policy under the Clean Air Act, with particular attention to the types of policy instruments used. We provide a generic assessment of the major types of policy instruments, and we trace and assess the historical evolution of EPA's policy instrument use, with particular focus on the increased use of market-based policy instruments, beginning in the 1970s and culminating in the 1990s. Over the past fifty years, air pollution regulation has gradually become much more complex, and over the past twenty years, policy debates have become increasingly partisan and polarized, to the point that it has become impossible to amend the Act or pass other legislation to address the new threat of climate change. |
| JEL: | Q40 Q48 Q54 Q58 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp18-039&r=all |
| By: | Rohan Best (Department of Economics, Macquarie University); Paul J Burke (Crawford School of Public Policy, Australian National University); Shuhei Nishitateno (School of Policy Studies, Kwansei Gakuin University) |
| Abstract: | Australia is a world leader in household uptake of solar photovoltaic systems. In this paper we use household-level data to identify economic, social, and environmental factors that influence actual uptake and the intention to install. We find that higher net wealth is generally associated with higher likelihood to install. Households that have mortgages, that spend more on electricity, and that pay higher average electricity prices are more likely to intend to install. Environmental preferences and related behaviours, property tenure, and space constraints are associated with both actual uptake and intention to install. We use data from the Survey of Income and Housing of 2015–16 and the Household Energy Consumption Survey of 2012. |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1902&r=all |
| By: | Schatzki, Todd (Analysis Group, Inc.); Stavins, Robert N. (Harvard Kennedy School) |
| Abstract: | Like many other states, Oregon has begun to pursue climate policies to attempt to fill the gap created by the lack of effective climate policy at the Federal level. After adopting a variety of policies to address climate change and other environmental impacts from energy use, Oregon is now contemplating the adoption of a greenhouse gas (GHG) cap-and-trade system. However, interactions between policies can have important consequences for environmental and economic outcomes. Thus, as Oregon considers taking this step, reconsidering the efficacy of its other current climate policies may better position the state to achieve long-run emission reductions at sustainable economic costs. |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp18-038&r=all |
| By: | M. Turkensteen (Marcel); van den Heuvel, W. |
| Abstract: | Logistics decisions can have a significant impact on carbon emissions, a driver of global warming. One possible way to reduce emissions is by adapting a lower delivery frequency, which enables better vehicle utilization or the usage of relatively effcient large vehicles. We study the situation in which a decision maker decides on the amount to be shipped in each period, where he/she can order items in each period and keep items on inventory. If the shipped quantity is large, vehicle capacity is well utilized, but many products have to be stored. Existing studies in this field of research, called lot-sizing, have introduced models for incorporating carbon emissions in the decision making, but do not focus on realistic values of the emission parameters. Therefore, we conduct a survey of empirical studies in order to establish the possible marginal emissions from holding inventory and performing a shipment with a truck. We consider a case study based on real-life considerations and on the findings of the survey study, and introduce a novel bi-objective lot-sizing model to find the Pareto optimal solutions with respect to costs and emissions. In our initial experiments, we consider various demand scenarios and other relevant factors, such as product properties and driven distances. We find that it is often costly to reduce carbon emissions from the cost optimal solution, compared to carbon prices in the market. The cases in which carbon emissions can be reduced most cost-effciently are those in which carbon emissions are large relative to costs, typically because costs are the results of past investments and can be considered sunk. |
| Date: | 2019–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:ems:eureir:115861&r=all |
| By: | Ramelli, Stefano (University of Zurich); Wagner, Alexander F. (University of Zurich); Zeckhauser, Richard J. (Harvard Kennedy School); Ziegler, Alexandre (University of Zurich) |
| Abstract: | Donald Trump's 2016 election and the subsequent nomination of Scott Pruitt, a climate skeptic and self-proclaimed opponent of the Environmental Protection Agency's "activist agenda," to lead the EPA drastically shifted expectations on US climate change policy. Firms' stock-price reactions to these events reveal whether their climate strategies affected their valuations. As widely reported, firms in industries with high carbon intensity benefited, at least briefly. It might be expected that companies with "responsible" strategies on climate change would have lost value. In fact, investors actually rewarded such firms. The analysis shows that this observed climate responsibility premium is due, at least in part, to the strategic behavior of long horizon investors who look into the future to assess the valuation of corporations. |
| JEL: | G14 G38 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:harjfk:rwp18-037&r=all |
| By: | Dunz, Nepomuk; Naqvi, Asjad; Monasterolo, Irene |
| Abstract: | It is increasingly recognized that banks might not be pricing adequately climate risks in the value of their loans contracts. This represents a barrier to scale up the green investments needed to align the economy to sustainability and to preserve financial stability. To overcome this barrier, climate-aligned policies, such as a revision of the microprudential banking framework (for example a Green Supporting Factor (GSF )), and the introduction of stable green fiscal policies (for example a Carbon Tax (CT )), have been advocated. However, understanding the conditions under which a GSF or a CT could represent an opportunity for scaling up green investments, while preventing trade-offs on risk for financial stability, is still insufficient. We contribute to fill this knowledge gap threefold. First, we analyse the risk transmission channels from climate-aligned policies, a GSF and a CT, to the credit market and the real economy via loans contracts. Second, we assess the reinforcing feedbacks leading to cascading macro-financial shocks. Third, we consider how banks could react to the policies, i.e., their climate sentiments. In this regard, we embed for the first- time banks climate sentiments, modelled as a non-linear adaptive forecasting function into a Stock-Flow Consistent model that represents agents and sectors of the real economy and the credit market as a network of interconnected balance sheets. Our results suggest that the GSF is not sufficient to effectively scale up green investments via a change in lending conditions to green firms. In contrast, the CT could shift the bank's loans and the green/brown firms' investments towards the green sector. Nevertheless, it could imply short-term negative transition effects on GDP growth and financial stability, according to how the policy is implemented. Finally, our results show that bank's anticipation of a climate-aligned policy, through stronger climate sentiments, could smooth the risk for financial stability and foster green investments. Thus, our results contribute to understand the conditions for the onset and the mitigation of climate-related financial risks and opportunities. |
| Keywords: | climate sentiments, climate risk, green supporting factor, carbon tax, financial stability, Stock-Flow Consistent modelling |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus045:6911&r=all |
| By: | Michael Saidani (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Alissa Kendall (Department of Civil and Environmental Engineering [UC Davis] - UC Davis - University of California [Davis, USA]); Bernard Yannou (Ingénierie de la conception - Design Engineering - LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Yann Leroy (Ingénierie de la conception - Design Engineering - LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); François Cluzel (Ingénierie de la conception - Design Engineering - LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec) |
| Abstract: | In this study, material flow analysis (MFA) is applied to quantify and break the obstacles for advancing a circular economy (CE) of platinum (Pt) from catalytic converters (CC) in Europe. First , the value chain and related stakeholders are mapped out in a MFA-like model to both facilitate the assessment of stocks and flows, and get a comprehensive view of potential action levers and resources to close-the-loop. Then, through the cross analysis of numerous data sources, two MFA are completed: (i) one general MFA, and (ii) one sector-specific MFA, drawing a distinction between the fate of Pt from (a) light-duty vehicles, under the ELV Directive 2000/EC/53, and (b) heavy-duty and off-road vehicles. Key findings reveal a leakage of around 15 tons of Pt outside the European market in 2017. Although approximately one quarter of the losses are due to in-use dissipation, 65 % are attributed to insufficient collections and unregulated exports. Comparing the environmental impact between primary and secondary production, it has been estimated that halving the leakages of Pt during usage and collection could prevent the energetic consumption of 1.3x10^3 TJ and the greenhouse gases emission of 2.5x10^2 kt CO2 eq. Through the lens of circularity indicators, activating appropriate action levers to enhance the CE performance of Pt in Europe is of the utmost importance in order to secure future productions of new generations of CC and fuel cells. Moreover, the growing stockpile of Pt from CC in use urges for better collection mechanisms. Also, the CC attrition during use and associated Pt emission s in the environment appears as non-negligible. Based on the scarce and dated publications in this regard, we encourage further research for a sound understanding of this phenomenon that can negatively impact human health. |
| Keywords: | circularity indicators,value chain,MFA,catalytic converter,Circular economy,platinum |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02094798&r=all |
| By: | Simone Marsiglio (Department of Economcis, University of Pisa, and Center for Financial Development and Stability at Henan University, and School of Economics at Henan University, Kaifeng, Henan); Nahid Masoudi (Memorial University of Newfoundland, and Center for Financial Development and Stability at Henan University, and School of Economics at Henan University, Kaifeng, Henan) |
| Abstract: | We analyze a transboundary pollution control problem in a heterogeneous two-country differential game in which each country’s regulator cares for the implications of environmental policy on its compet- itiveness. We characterize and compare the noncooperative and the cooperative solutions, showing that under both scenarios, the heterogeneous countries impose different tax rates despite such competitiveness concerns. This may suggest that, while implementing some kind of mitigation policy is necessary to com- bat climate change, a universally homogeneous environmental tax may not be either desirable or optimal. |
| Keywords: | Climate Change; Competitiveness; Mitigation Policies; Transboundary Pollution |
| JEL: | C70 Q54 Q58 |
| URL: | http://d.repec.org/n?u=RePEc:fds:dpaper:201901&r=all |
| By: | Samuel Brazys; Krishna Chaitanya Vadlamannati (School of Politics & International Relations, University College Dublin); Indra de Soysa (Department of Sociology and Political Science (ISS), Norwegian University of Science and Technology (NTNU)) |
| Abstract: | Many find that oil wealth produces political conflict. It is also argued that oil makes countries susceptible to the “resource curse” because rulers more easily buy off opposition and stave off economic reforms. We explore this issue by examining whether oil price volatility affects political unrest in oil-producing and oil import dependent states. We argue that in oil-producing countries, low prices generate anti-government protest conditional on a state´s access to foreign exchange reserves that accumulate due to political prudence. We also argue that oil-importing countries are affected by high oil prices, but again, conditional on access to foreign exchange reserves, which allow government to ease the pain of austerity. Using panel data covering 165 countries between 1980-2013 (34 years), we find support for the hypotheses. Our results lend support to the view that prudent governance in oil-producer countries that resist political Dutch disease and save for rainy days are more capable of weathering low-price years. These results are in line with others that show that oil producers avoid civil war through higher public spending. The results are robust to alternative data, measurement, sample size, and estimation methods. |
| Date: | 2019–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:ucd:wpaper:201908&r=all |
| By: | Kenny S, Victoria |
| Abstract: | Nigeria today is trapped in a crises of deteriorating economic conditions measured in terms of widespread unemployment, abject poverty, exploitation and backwardness among others. The establishment of public enterprises is to address these problems, therefore this study critically examines the role of public sector enterprise on economic development using a case study of the Nigerian power sector covering periods between 1981-2015. This study employed the Johansen Cointegration test to establish a long run relationship between the variables while the Dynamic Ordinary Least Square (DOLS) estimation technique was used to examine a long run impact between the dependent and explanatory variables. Key findings revealed that an increase in electricity consumption induces improvement in per capita income, whereas, an increase in the rate of electricity transmission and distribution loss induces decline in per capita income in the long run. This study concludes that electricity management would substantially influence economic development process in Nigeria. Therefore, there is need to re-evaluate the current privatization exercise of the electricity sub-sector and improve the generating and transmission capacity of the sector in Nigeria. |
| Keywords: | Economic Sector, Public Development and Dynamic Least Squares |
| JEL: | O1 |
| Date: | 2019–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93291&r=all |
| By: | Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Nan Yu (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); David Hanrahan (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Benedikt Schmuelling (Lehrstuhl für Elektromobilität und Energiespeichersysteme (EES), Bergische Universität Wuppertal); Heiko Fechtner (Lehrstuhl für Elektromobilität und Energiespeichersysteme (EES), Bergische Universität Wuppertal) |
| Abstract: | The analysis provides a hybrid techno-economic perspective on EU and China e-bus development dynamics. China is a leading global electric bus user – particularly in certain provinces. In Europe, the European Commission has started an electric bus initiative and several EU member countries have tried to achieve progress with regard to their own municipal e-bus fleets. While the economic analysis shows that e-bus innovation and diffusion dynamics can be influenced by government procurement policy, it is also obvious that certain pricing schemes in e-bus (mixed) municipal mobility networks are not successfully promoting clean e-bus expansion. A key issue is that various grant schemes depress the prices for used e-buses which in turn creates additional risk for e-bus leasing arrangements. Industrial policy aspects as well innovation policy face challenges in the e-bus context. China’s regional e-bus approaches have shown considerable success and part of China’s patent dynamics supports e-bus expansion perspectives. From a technological perspective, there are several alternative modes of e-bus mobility whose technological and economic advantages have to be explored in the context of the characteristics of local and regional bus routes. A very important technological element of e-mobility concerns technical aspects of battery charging – for example, cycle lifetime, power density, charging time and safety. The price dynamics of battery packs is rather high and should stimulate the expansion of e-bus mobility in Europe and China. One key problem faced by Europe and Asia is the challenge of common technical standards. As regards Germany’s and the UK’s position as a potential lead markets for e-bus mobility – or a similar positioning of a network of EU cities – much depends on adequate new policy initiatives. The emissions reductions which could be achieved by transitioning to 100% e-bus mobility in the EU would amount to an estimated 1.3% cut in terms of emissions of the transport sector (without aviation). |
| Keywords: | Sustainability, municipal transportation, e-bus, technology, EU, China |
| JEL: | N74 N75 Q55 Q56 R4 |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei255&r=all |
| By: | Muehlegger, Eric; Rapson, David |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2019–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt5fm8n2fx&r=all |
| By: | Julie Ing (University of Rennes, France); Jean-Philippe Nicolai (ETH Zurich, Switzerland) |
| Abstract: | This paper develops a simple partial equilibrium model with two countries (North and South) to fathom the effects of firms’ relocation in a context of international and imperfect competition. Two different production technologies are considered, a clean technology and a dirty one, and the effects of relocation according to the kind of technology used by the relocated firms are determined. Two heterogeneous firms in the North and only one dirty firm in the South are assumed and the four different possible scenarios are compared: neither firm relocates, the two northern firms relocate, the clean one relocates and the dirty one relocates. This paper demonstrates that the relocation of a dirty firm as compared to the relocation of a clean firm is worse for the environment, better for northern consumers, and better for the domestic profits. Moreover, the relocation of a dirty firm always increases global emissions, while the relocation of a clean firm may decrease global emissions. |
| Keywords: | Relocation, Emissions tax, Trade of polluting goods, Dirty and clean production technologies, Imperfect competition |
| JEL: | L13 Q53 Q58 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:19-319&r=all |
| By: | Obermüller, Frank |
| Abstract: | Die Kosten der EEG-Umlage sind hoch wie noch nie. Im Jahr 2018 kosteten die Auflagen durch das EEG (Erneuerbare-Energien-Gesetz) die Stromkunden insgesamt 26,6 Milliarden Euro. Deshalb ist es wichtig, dass die Förderungen für den Ausbau von Stromerzeugungsanlagen erneuerbarer Energien nicht höher sind als notwendig. Doch Mengenbegrenzungen und Genehmigungsengpässe verhindern, dass die aktuell kostengünstigste Technologie am stärksten ausgebaut werden kann. Im Sinne einer effizienten Energiewende bedarf das dringend einer Reform. Denn schließlich zahlt jeder Letztverbraucher die Zusatzkosten. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:142019&r=all |
| By: | Caron, Justin; Fally, Thibault |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2018–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:agrebk:qt0n98j4z7&r=all |
| By: | George Economides; Anastasio Xepapadeas |
| Abstract: | We investigate the impact of climate change on the macroeconomic performance of a small open economy. The setup is a new Keynesian dynamic stochastic general equilibrium model of a small open economy without monetary policy independence in which a climate module that interacts with the economy has been incorporated. The model is solved numerically using common parameter values, fiscal data and projections about temperature growth from the Greek economy. Our results, suggest that climate change implies a significant output loss and a dramatic deterioration of competitiveness. |
| Keywords: | climate change, monetary policy, new Keynesian models |
| JEL: | E50 E10 Q50 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7582&r=all |
| By: | Locatelli, C.; Abbas, M. |
| Abstract: | Ce cahier de recherche vise à appliquer les problématisations des nouvelles approches de l’interdépendance (New Interdependence Approches – NIA selon l’acronyme anglais) aux enjeux relatifs à la régulation internationale de l’énergie et ce à partir d’un cas d’étude : la relation gazière entre l’UE et la Russie. Les interdépendances entre l’UE et ses fournisseurs extérieurs en matière de gaz naturel, au premier rang desquels figure la Russie, posent la question de la confrontation de préférences contradictoires des acteurs impliqués dans l’échange. L’interdépendance conflictuelle recèle un « effet transformatif » sur les régulations, les systèmes institutionnels et les politiques énergétiques de la Russie et de l’UE. Les deux modèles institutionnels font l’objet de changements incrémentaux porteurs de conséquences importantes. Dans l’interdépendance, la politique énergétique russe et les stratégies des acteurs russes se transforment pour faire place à un certain degré de concurrence. A l’inverse, il semble que de manière croissante celle de l’UE intègre des préoccupations d’ordre stratégique et d’économie politique qui ne se justifient pas par les seules considérations de création d’un marché unique et concurrentiel. |
| Keywords: | GAZ NATUREL;ECHANGES GAZIERS;POLITIQUE ENERGETIQUE;NOUVELLES APPROCHES DE L'INTERDEPENDANCE;NEW INTERDEPENDENCE APPROACHES;NIA;EU;RUSSIE |
| JEL: | F55 L22 L72 Q37 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2019-02&r=all |
| By: | Fitch, Dillon PhD |
| Keywords: | Engineering |
| Date: | 2019–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3mm040km&r=all |
| By: | OECD |
| Abstract: | Problems associated with the environment loom large over the future well-being of young generations. A previous issue of PISA in Focus (PISA in Focus 87) shows that in 2015 many 15-year-old students believed that the future – their future – was going to be worse, environmentally, than the present. In particular, only a minority of students (fewer than one in five, on average across OECD countries) believed that problems related to air pollution, the extinction of plants and animals, clearing forests for land use, water shortages and nuclear waste would improve over the next 20 years. But are teenagers more or less pessimistic than their parents? |
| Date: | 2019–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduddd:95-en&r=all |
| By: | Stefano Carattini; Eli P. Fenichel; Alexander Gordan; Patrick Gourley |
| Abstract: | The tradable or transferable permit system, “cap and trade”, is one of the most innovative policy options developed by environmental economists. Over the last 40 years, cap and trade programs have been used around the globe by some of the world’s biggest economies. By placing a cap on a bad, whether a pollutant or excess fish mortality, and then allowing firms to buy and sell the right to generate it, policy makers combine government intervention with market-based incentives in order to improve welfare and internalize the externality. Such programs represent a great opportunity for economics instructors to show students how economic theory can be used in the real world by policy makers while teaching foundational economic concepts. By using an in-class game that utilizes a mobile app or paper-based interaction to create a market for a pollutant (or another rival but non-excludable resource), students can learn several important tenants of economics. These include how prices are formed and how price-based incentives lead to voluntary, as if cooperative, behavior by agents. This active learning method engages students while improving their comprehension of price formation, gains from trade, voluntary response to incentives, and an important environmental economics policy. |
| Keywords: | classroom game, price formation, cap and trade, emissions trading scheme, carbon tax, catch shares, individual transferable quotas |
| JEL: | A20 Q31 Q38 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7583&r=all |