|
on Energy Economics |
| By: | Carrara, Samuel |
| Abstract: | Meeting the targets of climate change mitigation set by the Paris Agreement entails a huge transformation of the energy sector, as low- or no-carbon technologies must gradually substitute traditional, fossil-based technologies. In this perspective, the vast majority of energy analyses and scenarios project a fundamental role of Carbon Capture & Storage (CCS). However, uncertainty remains on the actual techno-economic feasibility of this technology: despite the considerable investment over the recent past, commercial maturity is yet to come. The main aim of this work is to evaluate the impacts of a progressively delayed deployment of CCS plants from a climate, energy, and economic perspective, focusing in particular on the power sector. This is carried out with the Integrated Assessment Model WITCH, exploring a wide set of long-term scenarios over mitigation targets ranging from 1.5°C to 4°C in terms of global temperature increase in 2100 with respect to the pre-industrial levels. The analysis shows that CCS will be a key mitigation option at a global level for carbon mitigation, achieving about 30% of the electricity mix in 2100 (with a homogeneous distribution across coal, gas, and biomass) if its deployment is unconstrained. If CCS deployment is delayed or forbidden, penetration cannot reach the optimal unconstrained level, resulting in a mix rearrangement, with a strong increase in renewables and, to a lesser extent, nuclear. The mitigation targets can be met, but policy costs without the implementation of CCS are from 35% to 72% higher than in the corresponding unconstrained scenarios. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies |
| Date: | 2019–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemfe:288461&r=all |
| By: | Raimondi, Pier Paolo |
| Abstract: | After the Soviet breakup, Central Asia has gained importance for several States because of its geographical location and abundance of hydrocarbon reserves. These hydrocarbon reserves are located mainly in three countries: Kazakhstan, Turkmenistan and Uzbekistan. Each of them has taken different path regarding its foreign policy and the regulation of investments and participation of external companies and States in its energy sector. Through the development, production and export of their oil and gas reserves, they have pursued a ‘multi-vector’ policy, consolidating differently their relations with other countries. The main States involved – at different levels and for different reasons – in the oil and gas sector of the Central Asian countries are: Russia, China, United States, European countries, Iran, India and Turkey. Among these players, Russia considers Central Asia still part of its sphere of influence for historical reasons, while it has to deal an increasing presence of Beijing. The Western countries has gained influence particularly in Kazakhstan, but they have no political leverage in Turkmenistan. This working paper provides an overview of the current situation of external players’ interests in the oil and gas industry of Kazakhstan, Turkmenistan and Uzbekistan. The working paper is structured into four different sections. In the first section, the paper gives an overview of the main interests and pillars of external involvement in Central Asia as a region. The other three sections are devoted to provide separately the current status of energy relations between each Central Asian country and external players, starting from the closest countries (Russia and China) to the regional ones (Iran, Turkey and India) until non-regional countries (United States and European countries). During these analysis, investments in the oil and gas sector as well as energy export routes and volumes are highlighted in order to understand the current situation of the energy relations. At the end of each country section, the main trends and interests of the countries in the regional oil and gas sector are outlined. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2019–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemfe:288454&r=all |
| By: | Addison Tony |
| Abstract: | The extractives industries must adjust their operations to shifting patterns of demand for oil, natural gas, and coal together with metals and minerals – as policies and new technologies encourage progress along low-carbon pathways in energy, transportation and construction to combat climate change.Adoption of renewable energy is accelerating across the world, but fossil fuels will be in use for many years (with natural gas replacing coal in electricity generation, especially in Asia). Large amounts of fossil-fuels will eventually be unusable (‘stranded’) if international goals to contain greenhouse gas emissions are to be met.Low-carbon technologies and pathways are likely to be more intensive in metals and materials than existing fossil-fuel technologies. This offers great opportunities for countries with mining sectors, but there are major concerns over the distribution of the economic benefits, and mining itself must reduce its environmental footprint together with its own greenhouse gas emissions. |
| Keywords: | Natural gas,Oil,Climate change,Energy,Extractives |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-84&r=all |
| By: | Jamal Bouoiyour (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour, IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau); Refk Selmi (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour, IRMAPE - Institut de Recherche en Management et Pays Emergents - ESC Pau) |
| Abstract: | Oil prices have tumbled after Saudi Arabia and its allies cut ties with Qatar, sparking anxiety that OPEC's fragile deal to curtail oil production could come undone. Also and although its daily oil output of around 600,000 barrels represents less than one percent of world crude production, Qatar is a major player in liquefied natural gas. This means that the current deterioration in relations among the Middle East neighbours would have significant implications for oil and gas markets.This paper is novel in its methodological approach, which is used to decompose the variance of oil stock price indices into contributions from country-specific uncertainty and uncertainty common to all countries. The analysis reveals that the contributing factors have varied over time. Prior to the blockade on Qatar, the region-specific uncertainty plays an important role in driving the volatility of oil and gas shares for all cases. In considering the post-boycott, an increasing importance of the country-specific uncertainty factor is shown. This suggests that GCC states that have long resisted making a collective effort to accomplish energy security, are now moving into a new era during which securing their own supply routes will be an indispensable part of their mode of operation. To strengthen energy cooperation, it is first necessary to rebuild trust. |
| Keywords: | oil and gas markets,country- specific uncertainty,region-specific uncertainty,Qatar diplomatic crisis |
| Date: | 2019–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02101633&r=all |
| By: | Christa N. Brunnschweiler (University of East Anglia); Steven Poelhekke (University of Auckland, Vrije Universiteit Amsterdam and Tinbergen Institute) |
| Abstract: | Does institutional change in the petroleum sector lead to more oil and gas exploration and discoveries? Foreign ownership and investment in the sector has traditionally been unrestricted. We document that this is no longer the case; foreign-domestic partnerships are the norm today. Tracking changes in legislation between 1867 and 2008 for a panel of countries, we show that switching to foreign ownership results in more drilling and more discoveries of petroleum than domestic ownership. Switching to partnership yields even more drilling, but yields fewer discoveries. Discoveries, and the intensity and quality of exploration drilling, are endogenous to industry-specific institutional change. |
| Keywords: | discoveries, oil and gas, natural resources, institutions |
| JEL: | E02 O43 Q30 |
| Date: | 2019–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:uea:ueaeco:2019_01&r=all |
| By: | Christophe Charlier (Université Côte d'Azur, France; GREDEG CNRS); Gilles Guerassimoff (MINES ParisTech; PSL Research University; Center for Applied Mathematics); Ankinée Kirakozian (Université Polytechnique Hauts-de-France; IDP; GREDEG CNRS); Sandrine Selosse (MINES ParisTech; PSL Research University; Center for Applied Mathematics) |
| Abstract: | Controlling energy consumption is a serious environmental issue due to global warming and pollution. Public policies are developed in this context. One such policy is the nudge, a form of policy aimed at changing individual behaviors without using financial incentives nor orders, for example by providing information to individuals so as to conduct behaviors in the direction desired by the policymaker. Interestingly "private nudges" can be imagined for companies. Many economists and psychologists have studied the impact of nudges on households' pro-environmental behaviors. Yet, studies focusing on nudging employees' energy use are rare. The objective of our paper is precisely to explore this issue from an empirical point of view with the help of a field experiment. Using a difference-in-difference methodology, the effects of three nudges on employees' energy conservation are tested. The first nudge, "moral appeal", stresses the responsible use of energy regarding environmental stakes. The second one, "social comparison", informs employees on the energy consumption of other firms participating in the experiment. Finally, the third nudge, "stickers", alerts employees about good energy conservation practices. The field experiment was conducted at 47 French companies's sites. Our results stress the complementarity of these nudges. When implemented alone, the three nudges have no significant effects on energy consumption. However, when the moral appeal and social comparison nudges are combined with the stickers one, they become effective. |
| Keywords: | Energy demand management, Private nudges, Peer pressure, Field experiment |
| JEL: | C93 D04 D91 Q41 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2019-18&r=all |
| By: | Danielle Devogelaer; Dominique Gusbin |
| Abstract: | In October 2017, the Federal Planning Bureau published its three-yearly energy outlook describing the Belgian energy and emission projections under unchanged policy up to horizon 2050. That outlook demonstrates that we are drifting away from agreed targets and international agreements made to protect future societies from hazardous levels of climate change. That is why that outlook is complemented by this report that adopts a different perspective. This publication describes and analyses three alternative policy scenarios that are compatible both with the 2030 EU Climate and Energy Framework and with the roadmap for moving to a competitive low-carbon economy in 2050. |
| JEL: | C6 O2 Q4 |
| Date: | 2018–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:1805&r=all |
| By: | Gaël Giraud (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, AFD - Agence française de développement, Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); Hadrien Lantremange (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne, Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); Emeric Nicolas (Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier); Olivier Rech (Chaire Energie & Prospérité - ENS Paris - École normale supérieure - Paris - X - École polytechnique - ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique - Institut Louis Bachelier) |
| Abstract: | How could the burden of GHG emission reduction be shared among countries? We address this arguably basic question by purely statistical methods that do not rely on any normative judgment about the criteria according to which it should be answered. The sum of current Nationally Determined Contributions to reducing GHG emissions would result in an average temperature rise in 2100 of the order of 3°C to 3.2°C. Implementing policies that enable to achieve the objective of a worldwide average temperature rise below 2°C obviously requires setting a more consistent and efficient set of national emissions targets. While a scientific consensus has been reached about the global carbon budget that we are acing, given the 2°C target of the Paris Agreement, no such consensus prevails on how this budget is to be divided among countries. This paper proposes a Climate Liabilities Assessment Integrated Methodology (CLAIM) which enables to determine national GHG budgets compliant with any average temperature target and time horizon. Our methodology does neither resort to any scenario nor any simulation-based model. Rather, it computes the allocation of 2°C-compatible national carbon budgets which has a priori the highest probability of emerging from the international discussion, whatever being the criteria on which the latter might be based. As such it provides a framework ensuring the highest probability of reaching a consensus. In particular, it avoids the pitfall of arbitrarily assigning weights according, say, to "capacity" or "responsibility" criteria, and simultaneously unifies the different methodologies that have been proposed in the literature aiming at setting national GHG budgets. Sensitivity tests confirm the robustness of our methodology. |
| Keywords: | climate change,global warming,GHG emissions,distribution of GHG emissions,emissions gap,2°C scenario,carbon budget,Intended nationally determined contribution |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01673358&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: | FDI,Strategic Environmental Policy,Firm Location,Carbon Leakage,General Equilibrium |
| JEL: | F12 F18 H23 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kcgwps:14&r=all |
| By: | Wolf Sebastian; Potluri Vishal |
| Abstract: | We study Uganda’s journey to become a petroleum producer and provide estimates regarding the size and timing of the oil revenues to be expected. At an average US$38 per capita per year over a 33-year period, oil revenue by itself will not be transformational for the Ugandan economy, but it could provide a welcome boost.The question is whether the Ugandan government will manage to avoid squandering it, and will transform the country’s natural resource assets into productive assets. To this end, the government has made significant additions and changes to the policy and institutional framework that will govern the use of revenues, adapted from the Norwegian model.We study the framework put in place and identify a number of potential shortcomings. Weaknesses in public investment management further raise doubts about the transformational impact of the planned investments. |
| Keywords: | Extractive industries,Extractives,Oil,Petroleum revenues,structural change |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-179&r=all |
| By: | Friedrich, Marina; Mauer, Eva-Maria; Pahle, Michael; Tietjen, Oliver |
| Abstract: | Now in its third compliance period, we can look back at more than 12 years of existence of the emissions trading system (ETS) in the European Union. The focus of this paper is to review the empirical literature on price formation in the EU ETS. As a reoccurring concept, we draw on a simple theoretical model of price formation that we subsequently extend to accommodate three different strands of literature. First, we gather evidence based on empirical papers which look at the role of fundamental price drivers. Second, we review the event study literature, where political and regulatory uncertainty is the main topic. Third, we devote a major part to finance literature in this market. In every section, we pay special attention to the challenges that arise when empirically modeling allowance prices in this complex market. We emphasize that there is a need for more evidence and possibly alternative approaches due to the complex interplay of compliance and finance trading motives. As a result, the findings of this review provide important lessons about price formation in the EU ETS, which can also inform the design of such programs in other countries. |
| Keywords: | Emission Trading,EU ETS,Carbon Pricing |
| JEL: | Q48 Q50 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:196150&r=all |
| By: | Rainald Borck (University of Potsdam, CESifo, DIW Berlin); Philipp Schrauth (University of Potsdam) |
| Abstract: | We use panel data from Germany to analyze the effect of population density on urban air pollution (nitrogen oxides, particulate matter and ozone). To address unobserved heterogeneity and omitted variables, we present long difference/fixed effects estimates and instrumental variables estimates, using historical population and soil quality as instruments. Our preferred estimates imply that a one-standard deviation increase in population density increases air pollution by 3-12%. |
| Keywords: | population density, air pollution |
| JEL: | Q53 R12 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:08&r=all |
| By: | Sen Ritwika |
| Abstract: | This paper analyses policy options to promote local content in Uganda as it transitions into an oil-producing country. It contends that productive linkages between oil and gas exporters and domestic suppliers in a range of ‘connected’ goods and services sectors can be a source of broad-based economic growth.However, the success of policy initiatives or extensive regulatory requirements will ultimately hinge on domestic supplier capabilities to overcome barriers to entry into the global industry.The analysis comprises an evaluation of existing local content policies in Uganda, a mapping of the natural resource value chain, and an assessment of domestic firm capabilities to supply the anticipated demand for goods and services from the oil and gas industry. |
| Keywords: | Local content,Oil and gas,Tax administration data |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-110&r=all |
| By: | Rosendahl, Knut Einar (School of Economics and Business, Norwegian University of Life Sciences) |
| Abstract: | With the new rules of the EU ETS, involving cancellation of allowances, cumulative emissions are no longer fixed but depending on the market outcome. Perino (2018) showed that additional abatement effort can reduce cumulative emissions if it occurs within a few years. This article shows that Perino’s result will be reversed, i.e., cumulative emissions increase, if the abatement effort is at a later year, or permanent. Thus, a new green paradox has emerged. |
| Keywords: | Emissions trading; Green Paradox; EU ETS; MSR |
| JEL: | H23 Q54 Q58 |
| Date: | 2019–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsseb:2019_002&r=all |
| By: | Arnaud Millien (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne) |
| Abstract: | The 7th Sustainable Development Goal aims to "ensure access to affordable, reliable, sustainable and modern energy for all". Because the cost to increase electrical capacity in Africa alone has been estimated at $800bn, this article investigates the extent to which electricity reliability could contribute to a reduction in the marginal cost of grid extension by attracting more customers. Using lightning as an instrument for outages severity, the article evaluates the assumption that less uncertainty about electricity availability would lead to a larger number of connected households. The article finds that a one percentage point increase in electricity reliability would yield a 0.67 percentage point increase in connections. Therefore, delivering fully reliable electrical power would allow an electricity company to achieve its targeted growth of customer base 15 months earlier than planned. The effect of reliability is highest for middle-rich households, which are the most reluctant to subscribe in the presence of total, severe or partial outages. A one-percentage-point upgrade in reliability increase the likelihood that these households will be connected by 1.28 percentage points. This article also finds that households are more sensitive to outages in areas where outages are less frequent. In addiction, the impact of reliability on households decision to connect could be at least 5% greater than the effect of poverty; if the frequency of outages is too high, the wealth or poverty effect might vanish and households would respond only to the excessively low reliability. These results confirm the uncertainty assumption, that is, regular and severe outages yield an uninsurable context that deters households from subscribing to the electric service. |
| Keywords: | outages,reliability,electrification,instrumental variable,Kenya |
| Date: | 2017–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01551097&r=all |
| By: | Ellis Mia; McMillan Margaret |
| Abstract: | Tanzania is rich with natural resources, which have significant potential to contribute to the country’s economic development.Several laws recently passed in Tanzania are dedicated to establishing linkages between foreign firms in natural resource extraction and the local economy. This paper documents this legislation and the institutions set up to enforce and monitor these laws.Effectiveness of local content legislation and the potential for firms in the mining sector to contribute to local development are then evaluated using a combination of qualitative and quantitative evidence. We then examine other developing countries’ experiences with local content legislation, drawing lessons for Tanzania. |
| Keywords: | Extractive industries,Local content,Mining,Natural gas,Natural resources |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-133&r=all |
| By: | Ioana Bejan (Department of Food and Resource Economics, University of Copenhagen); Carsten Lynge Jensen (Department of Food and Resource Economics, University of Copenhagen); Laura M. Andersen (Department of Food and Resource Economics, University of Copenhagen); Lars Gårn Hansen (Department of Food and Resource Economics, University of Copenhagen) |
| Abstract: | In theory real time pricing ensures more efficient electricity markets than time of use pricing. However, people are prone to habits and regularity, so real time pricing may impose a greater cost of reacting on consumers. In a randomized field experiment we compared the cost of reacting to incentives under these two pricing regimes. We utilized smart-metered hourly power consumption to unobtrusively measure treatment effects. We found that real time pricing reduces consumer surplus from reacting to incentives by half, compared to reacting under a corresponding time of use pricing regime. This suggests a substantial economic value to households of the regularity and predictability provided by time of use pricing. |
| Keywords: | real time electricity pricing, time of use electricity pricing, field experiment, household cost of reacting |
| JEL: | L51 L94 C93 Q41 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:foi:wpaper:2019_03&r=all |
| By: | Shahbaz, Muhammad; Gozgor, Giray; Kofi Adom, Philip; Hammoudeh, Shawkat |
| Abstract: | This paper decomposes the environmental Kuznets curve into the scale, technique and composition effects while incorporating the roles of energy consumption, trade openness and foreign direct investments (FDI) effects in a carbon emissions function for the United States (U.S.). We have incorporated information about unknown structural breaks into this function while investigating the cointegration between the related variables. The empirical results confirm the existence of cointegration between the variables in the presence of structural breaks. Moreover, the scale effect increases carbon dioxide emissions, but the technique effect reduces it as expected. Energy consumption also adds to carbon emissions, while the composition effect improves environmental quality by lowering carbon dioxide emissions. Further, trade openness decreases carbon dioxide emissions. However, increases in FDI hamper environmental quality by increasing carbon emissions. To reduce the level of carbon emissions, the technical processes of production should be improved by investing in technological innovations and capital stock and upgrading environmental regulations to channel in environment-friendly FDIs. There should also be a transformation of the energy consumption structure towards cleaner energy sources. |
| Keywords: | carbon emissions; scale effect; composition effect; technique effect; international trade; foreign direct investment |
| JEL: | Q5 |
| Date: | 2019–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:93720&r=all |
| By: | Jenn, Alan; Lee, Jae Hyun; Hardman, Scott; Tal, Gil |
| Abstract: | We investigate the impacts of a combination of incentives on the purchase decisions of electric vehicle (EV) buyers in California from 2010 through 2017. We employ a comprehensive survey on over 14,000 purchasers of EVs in California. The survey covers a range of purchase intentions, general demographics, and the importance of various incentives. Our results indicate that the most important incentives for plug-in electric vehicle (PEV) owners are the federal tax credit, the state rebate, and HOV lane access. In addition, the importance of the incentives and their associated effect on purchase behaviour has been changing over time: respondents are more likely to change their decisions and to not buy a vehicle at all as time passes and the technology moves away from early adopters. |
| Keywords: | Engineering, Electric vehicles, incentives, high occupancy vehicle lanes, consumer behavior, automobile ownership |
| Date: | 2019–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt0x28831g&r=all |
| By: | Hiroaki SAKAMOTO; Larry KARP |
| Abstract: | We analyze a dynamic model of international environmental agreements (IEAs) where countries cannot make long-term commitments or use sanctions or rewards to induce cooperation. Countries can communicate with each other to build endogenous beliefs about the random consequences of (re)opening negotiation. If countries are patient, an effective agreement can be reached after a succession of short-lived ineffective agreements. This eventual success requires \sober optimism": the understanding that cooperation is possible but not easy to achieve. Negotiations matter because beliefs are important. An empirical application illustrates the importance of sober optimism in the climate agreement. |
| Keywords: | Environmental agreements; Climate change; Dynamic game |
| JEL: | C72 C73 D62 H41 Q54 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:kue:epaper:e-19-002&r=all |
| By: | Quentin Couix (CES - Centre d'économie de la Sorbonne - CNRS - Centre National de la Recherche Scientifique - UP1 - Université Panthéon-Sorbonne) |
| Abstract: | This paper proposes a historical and epistemological account of one of the key controversy between natural resources economics and ecological economics, lasting from early 1970s to the end of 1990s. It shows that the theoretical disagreement on the scope of the economy's dependence to natural resources, such as energy and minerals, has deep methodological roots. On one hand, Solow's and Stiglitz's works are built on a "model-based methodology", where the model precedes and supports the conceptual foundations of the theory and in particular the assumption of "unbounded resources productivity". On the other hand, Georgescu-Roegen's counter-assumption of "thermodynamic limits to production", later revived by Daly, rest on a methodology of "interdisciplinary consistency" which considers thermodynamics as a relevant scientific referent for economic theory. While antagonistic, these two methodologies face similar issues regarding the conceptual foundations that arise from them, which is a source of confusion and of the difficult dialogue between paradigms. |
| Keywords: | natural resources,thermodynamics,growth,sustainability,model,theory,methodology |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-01702401&r=all |
| By: | Henstridge Mark |
| Abstract: | There are large volumes of gas offshore Tanzania, which has raised hopes of a boom. But those hopes look set to be disappointed. A boom would depend on there being a sizeable flow of revenue to government from producing and exporting gas.This paper sets out the scale of the gas, and the array of risks which currently make investment in gas production, and any associated boom, unlikely. As well as geological, engineering, and market risks, the risks to investment from public policy have been elevated over the last few years. |
| Keywords: | Boom,Developing countries,Institutions,Natural gas,Natural resources,Macroeconomics |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-177&r=all |
| By: | João Tovar Jalles |
| Abstract: | In this paper, we empirically assess by means of the local projection method, the impact of different types of financial crises on a variety of pollutant emissions categories for a sample of 86 countries between 1980-2012. We find that financial crises in general lead to a fall in CO2 and methane emissions. When hit by a debt crisis, a country experiences a rise in emissions stemming from either energy related activities or industrial processes. During periods of slack, financial crises in general had a positive impact on both methane and nitrous oxide emissions. If a financial crisis hit an economy when it was engaging in contractionary fiscal policies, this led to a negative response of CO2 and production-based emissions. |
| Keywords: | pollution, greenhouse gases, local projection method, impulse response functions, recessions, fiscal expansions |
| JEL: | E32 E6 G01 O44 Q54 |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp0832019&r=all |
| By: | Kong, Nathaniel; Hardman, Scott |
| Keywords: | Social and Behavioral Sciences, plug-in electric vehicle, electric vehicle, incentive |
| Date: | 2019–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt0fm3x5bh&r=all |
| By: | Majah-Leah V. Ravago (Department of Economics, Ateneo de Manila University); Arlan Zandro I. Brucal (Grantham Research Institute on Climate Change and the Environment, The London School of Economics and Political Science,); James Roumasset (University of Hawaii at Manoa); Jan Carlo Punongbayan (University of the Philippines) |
| Abstract: | The Philippines provides an extreme example of Rodrik’s observation that late developing countries experience deindustrialization at lower levels of per capita income than more advanced economies. Previous studies point to the role of protectionist policies, financial crises, and currency overvaluation as explanations for the shrinking share of the industry sector. We complement this literature by examining the role of electricity prices in the trajectory of industry share. We make use of data at the country level for 33 countries over the period 1980-2014 and at the Philippine regional level for 16 regions over the period 1990-2014. We find that higher electricity prices tend to amplify deindustrialization, causing industry share to turn downward at a lower peak and a lower per capita income, and to decline more steeply than otherwise. In a two-country comparison, we find that power-intensive manufacturing subsectors have expanded more rapidly in Indonesia, where electricity prices have been low, whereas Philippine manufacturing has shifted toward less power intensive and more labor-intensive subsectors in the face of high electricity prices. |
| Keywords: | electricity prices, structural transformation, deindustrialization |
| JEL: | O10 O14 Q40 Q41 |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2019-2&r=all |
| By: | Adeniyi, B.A.; Datul, S.A.; Amat, O.Z.; Omotoso, A.B. |
| Abstract: | This paper analysed the relationship between crude oil price volatility and Nigerian• Gross Domestic Products (proxy for growth of Nigerian economy) for the period 1970 to 2016 with Gareh (1, I) model and Vector autoregressive (VAR) model. The result of Arch test confirmed that crude oil price is significantly volatile while analysis of the result of trend of crude oil price volatility from 1970 to 2016 revealed that the 1973-74, 1979-80, 2003-2007, 2010-2014 boom periods were associated with crude oil price increases while the oil price collapse of 1986-2000 and near recession indices of year 2015-2016 is an episode of crude oil price fall.The resultofVARestimation revealed that there is a statistically significant, direct relationship between crude oil price volatility (COP) and gross domestic product (GDP} in the short run. Also, impulse response function showed that shock in crude oil prices has both positive and negative effect on gross domestic product in the short~ depending on whether the shock from crude oil price is an increase or a decrease (positive or negative) which might implied period of economic recession or prosperity. The paper therefore recommended that governments at all levels should intensify their efforts in diversifying the economy to a more productive and less volatile sector like agriculture in order to improve agricultural products export instead of total and heavy reliance on rents from crude oil export whose price is highly volatile and to insulate the economy against these shocks (decrease in oil prices) and its attendant consequences. |
| Keywords: | Demand and Price Analysis, Public Economics, Resource /Energy Economics and Policy |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:naae17:288312&r=all |
| By: | Henstridge Mark |
| Abstract: | A significant natural resource discovery creates excited popular expectations of imminent wealth. But the size of a boom is usually overestimated and the delay in receiving revenues is underestimated.This paper takes stock of the sequencing, timing, and scale of the development of a natural resource endowment; reviews the ‘resource curse’ literature; looks at benchmarks of scale and timing so as to put potential booms into the context of the challenges of growth and structural change in Africa; and, finally, gathers together observations on policy and institutional changes. |
| Keywords: | Macroeconomics,Resource curse,Boom,Developing countries,Institutions,Natural resources |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-178&r=all |
| By: | Feldhaus, Christoph; Gleue, Marvin; Löschel, Andreas |
| Abstract: | We conduct a field experiment with the visitors of the German Catholic Convention in Münster, Germany. We aim at investigating the effect of the announced attitude of a Catholic institution concerning climate protection efforts, of people's experimentally induced religiosity (using a priming intervention) and of the corresponding interaction on people's willingness to donate to a carbon-offsetting fund. Our results suggest that the supporting signal by the Catholic institution substantially increases donations by about 56 %. We observe neither a direct effect of the induced religiosity nor an interaction with the institution's signal. Our results thus indicate that religious authorities can promote sustainable behavior. As we observe no evidence that the signalmainly influences particularly religious people, we further conclude that religious institutions may serve as more general authorities when it comes to sustainable behavior rather than solely as leaders of those aiming to follow religious prescripts. |
| Keywords: | Sustainable behavior,Field experiment,Religiosity,Priming,Carbon offsets |
| JEL: | C93 D64 D91 Q56 Z12 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cawmdp:108&r=all |
| By: | Numa, W.D.; Obayelu, A.E.; Sanusi, R.A.; Bada, B.A. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2017–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:naae17:288419&r=all |
| By: | Vásquez Cordano, Arturo Leonardo |
| Abstract: | El presente documento analiza, de manera sintética, cómo la revolución de las energías renovables puede afectar en la próxima década el balance de oferta y demanda de litio a nivel mundial. Analizando la información disponible sobre el consumo y oferta del carbonato de litio, se esbozan algunos escenarios sobre la potencial evolución del mercado del litio. Finalmente, se analiza las posibilidades de desarrollar los recursos de litio en el Perú durante la próxima revolución renovable. |
| Keywords: | Litio; energía renovable; balance de oferta y demanda; Perú; Lithium; renewable resources |
| JEL: | L61 |
| Date: | 2018–08 |
| URL: | http://d.repec.org/n?u=RePEc:ger:dtrabj:002&r=all |
| By: | Page John |
| Abstract: | The exploitation of natural resources is a huge opportunity, but one that carries considerable risks. Relative prices in resource-exporting economies tend to push them towards economic structures dominated by the resource sector. This paper explores ways to achieve diversification in a resource-rich economy.It describes the relative price changes that accompany a resource boom and suggests policies and public investments to mitigate their impact. It explores some of the issues that influence the participation of local firms in the resource value chain and argues for broadening the options for diversification, through the development of ‘industries without smokestacks’ and investments in knowledge. |
| Keywords: | diversification,Extractive industries,Natural resources |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-68&r=all |
| By: | Aldo González; Vicente Lagos |
| Abstract: | In developing countries, the penetration of Liquefied Petroleum Gas (LPG) is still high, and hence the entry of Natural Gas (NG) networks coexists with the use of LPG by an important fraction of households. Thus, a relevant policy question is whether the number and degree of horizontal integration among NG and LPG providers has an influence on the level of retail prices. Using selfreported LPG retail prices of the largest LPG provider in Chile for the period 2013-2014, we estimate that the presence of a competing NG network generates an average decrease of LPG retail prices within the range [-2,-4%] depending on the econometric specification. Thus, since the presence of an additional competing provider (i.e., an NG retailer) has an influence on the level of prices, LPG and NG may be indeed considered as imperfect substitutes. The main policy implication of this result is that the degree of horizontal integration between both types of providers should matter and there would be room for regulatory intervention aimed at proposing remedies in order to mitigate any potential anticompetitive effect. |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp484&r=all |
| By: | Payson, Steven; Sloboda, Brian W. |
| Abstract: | The estimation of the employment effects of offshore safety and environmental regulation is often highly speculative and based on questionable assumptions. Nevertheless, it is still highly publicized and used as a basis for policy statements in support or, or in opposition to, proposed regulations. Much more reliable estimates of such employment effects can be made, however, based on fundamental principles of microeconomic analysis. This paper demonstrates this by developing a microeconomic model explaining the effects of offshore regulations on employment, assuming the standard profit-maximization behavior of firms. The paper finds that the most relevant and reliable measures of employment effects are: reductions in employment from operations that are terminated because of the new regulation, increases in employment because of additional labor needed to meet the new requirements, and increases in employment in equipment manufacturing when the regulation calls for the expanded use of certain equipment. The costs related to these contractions or expansions of employment can often be gleaned from information in the benefit-cost analysis that was required to accompany the proposed regulation by the regulatory agency involved. For example, the daily costs of offshore rigs and the costs of equipment can be translated to increases in employment. |
| Keywords: | Offshore,Oil,Gas,Regulation,Employment,Microeconomics |
| JEL: | J23 D20 Q48 L51 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:348&r=all |
| By: | Christopher Hartwell (Bournemouth University); Roman Horvath; Eva Horvathova; Olga Popova |
| Abstract: | We examine the causal effect of natural resource discoveries on income inequality using the synthetic control method on data from 1947 to 2009. We focus on the natural discoveries in Denmark, Netherlands and Norway in the 1960–1970s and use top 1% and top 10% income share as the measure of income inequality. Many previous studies have been concerned that natural resources may increase income inequality. To the contrary, our results suggest that natural resources decrease income inequality or have no effect. We attribute this effect to the high institutional quality of countries we examine. |
| Keywords: | Natural resources, income inequality, synthetic control method |
| JEL: | D31 O13 O15 Q33 |
| Date: | 2019–04 |
| URL: | http://d.repec.org/n?u=RePEc:ost:wpaper:381&r=all |
| By: | Roe Alan R. |
| Abstract: | This paper is a sequel to an earlier paper that looked in broad terms at many of the issues that Mozambique faces today in managing its new extractive resources.The paper first describes the investment surge that has already been prompted by new gas discoveries in Mozambique. It then summarizes some of the more recent literature that has examined the effects of such surges in other country contexts.It next examines the main aspects of the disappointing economic outcomes that have so far been seen through 2018, and selectively analyses some of the implications of these outcomes for future policy.The paper concludes by exploring the epidemiology of a large public investment surge—an issue that has relevance for the further surge that is still anticipated. In following this sequence of argument, the paper also throws light on a number of critical general policy questions that arise in the context of major new resource discovery. |
| Keywords: | Economic diversification,Economic transformation,Extractive industries,Institutional change,Policy coordination,Resource curse |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp2018-140&r=all |