nep-ene New Economics Papers
on Energy Economics
Issue of 2019‒07‒22
thirty papers chosen by
Roger Fouquet
London School of Economics

  1. Can the composition of energy use in an expanding economy be altered by consumers’ responses to technological change? By Karen Turner; Gioele Figus; Kim Swales; L. (Lisa B.) Ryan; et al.
  2. Carbon Pricing and Power Sector Decarbonisation: Evidence from the UK By Marion Leroutier
  3. Entrepreneurial assessment of sustainable development technologies for power energy sector By Andrey Rogalev; Ivan Komarov; Vladimir Kindra; Olga Zlyvko
  4. How sensitive are optimal fully renewable power systems to technology cost uncertainty? By Behrang Shirizadeh; Quentin Perrier; Philippe Quirion
  5. Assesment of the Demand Respons Aplication in Europe and its Complementary/Competitive Character with Storage Technologies By Juan Jose Cortez; A. Bidaud; Silvana Mima; Gabin Mantulet; Elena Stolyarova
  6. Should Electric Vehicle Drivers Pay a Mileage Tax? By Lucas W. Davis; James M. Sallee
  7. Convergence of European natural gas prices By Andrea, Bastianin; Marzio, Galeotti; Michele, Polo
  8. Renewable energy policies in federal government systems By Jasper Meya; Paul Neetzow
  9. Study of the prospects for the development of competition in the retail electricity markets By Suyunchev, Marat (Суюнчев, Марат); Mozgovaya, Oksana (Мозговая, Оксана); Kuznetsov, Vasiliy (Кузнецов, Василий)
  10. The Shift in Global Crude Oil Market Structure: A model-based analysis of the period 2013–2017 By Berk, Istemi; Çam , Eren
  11. Air Pollution During Pregnancy and Birth Outcomes in Italy By Alessandro Palma; Inna Petrunyk; Daniela Vuri
  12. Transition énergétique et sociétale : l'enjeu du « faire- ensemble » sur nos territoires By Bernard Lemoult; Samuel Aubin
  13. Investment needs to achieve affordable and clean energy By Zhenqian Huang
  14. Energy- and multi-sector modelling of climate change mitigation in New Zealand: current practice and future needs By White, Dominic; Winchester, Niven; Atkins, Martin; Ballingall, John; Coates, Simon; Mercader, Ferran de Miguel; Greenhalgh, Suzie; Kerr, Andrew; Kerr, Suzi; Leaver, Jonathan; Leining, Catherine; Monge, Juan; Neale, James; Philpott, Andrew; Smart, Vincent; Stroombergen, Adolf; Suomalainen, Kiti
  15. The Adverse Effect of Energy-Efficiency Policy By Voss, Achim
  16. International Agricultural Mitigation Research and the Impacts and Value of Two SLMACC Research Projects By Fleming, David A; Preston, Kate
  17. Accounting development of natural resources in organizations carrying out the disposal of municipal waste and biogas extraction in the context of the 'green' economy By Svetlana Vegera; Alena Malei; Renata Trubovich
  18. Environmental policy and firm selection in the open economy By Kreickemeier, Udo; Richter, Philipp M.
  19. Réflexion sur la réforme du système de compensation : Le ciblage via la facture d’électricité By Lahrech, Mohamed Taha
  20. Long-term macroeconomic effects of climate change: A cross-country analysis By Matthew E. Kahn; Kamiar Mohaddes; Ryan N. C. Ng; M. Hashem Pesaran; Mehdi Raissi; Jui-Chung Yang
  21. Corporate Social Responsibility in Nigeria and Rural Youths in Sustainable Traditional Industries Livelihood in Oil Producing Communities By Joseph I. Uduji; Elda N. Okolo-Obasi
  22. Market Implementation of Multiple-Arrival Multiple-Deadline Differentiated Energy Services By Yanfang Mo; Wei Chen; Li Qiu; Pravin Varaiya
  23. Investing in sustainable infrastructure for all By Daniel Jeongdae Lee; Shuvojit Banerjee; Zheng Jian
  24. India’s Biodiesel Programme: A Pathway for Sustainable Entrepreneurship, Employment Generation and Inclusiveness By Biswas, Pradip; Verma, Jyotiprakash; Pohit, Sanjib
  25. The pattern of economies green growth: The role of path dependency in Green Economy expansion By Seyyedmilad Talebzadehhosseini; Steven R. Scheinert; Amirarsalan Rajabi; Mostafa Saeidi; Ivan Garibay
  26. Wasted windfalls: Inefficiencies in health care spending in oil rich countries By Olive Nsababera
  27. Environmental Policy and Firm Selection in the Open Economy By Udo Kreickemeier; Philipp M. Richter
  28. Impact of oil prices on stock return: evidence from G7 countries By Omar Masood; Manuela Tvaronavičienė; Kiran Javaria
  29. Economic Development Thresholds for a Green Economy in Sub-Saharan Africa By Simplice A. Asongu; Nicholas M. Odhiambo
  30. Brazilian upstream petroleum regulation By Luciana Palmeira Braga

  1. By: Karen Turner; Gioele Figus; Kim Swales; L. (Lisa B.) Ryan; et al.
    Abstract: Technological change is necessary for economies to grow and develop. This paper investigates how this technological change could be directed in order to simultaneously reduce carbon-intensive energy use and deliver a range of economic benefits. Using both partial and general equilibrium modelling, we consider improvements in the efficiency in the delivery of electricity as an increasingly low carbon option in the UK. We demonstrate how linking this to policy action to assist and encourage households to substitute away from more carbon-intensive gas- to electricity-powered heating systems may change the composition of energy use, and implied emissions intensity, but not the level of the resulting economic expansion.
    Keywords: Technological change; CGE models; Multiple benefits; Rebound
    Date: 2019–07
  2. By: Marion Leroutier (Paris School of Economics (PSE), Université Paris I-Panthéon-Sorbonne, Centre International de Recherche pour l'Environnement et le Développement (CIRED))
    Abstract: The electricity and heat generation sector represents about 40 % of global greenhouse gas (GHG) emissions in 2016. Policy-makers have implemented a variety of instruments to decarbonise their power sector. This paper examines the UK Carbon Price Floor (CPF), a novel carbon pricing instrument implemented in the United Kingdom in 2013. After describing the potential mechanisms behind the recent UK power sector decarbonisation, I apply the synthetic control method on country-level data to estimate the impact of the CPF on per capita emissions. I discuss the importance of potential confounders and the amount of net electricity imports imputable to the policy. Depending on the specification, the abatement associated with the introduction of the CPF range from 106 to 185 millions tons of equivalent CO2 over the 2013-2017 period. This implies a reduction of between 41% and 49% of total power sector emissions by 2017. Several placebo tests suggest that these estimates capture a causal impact. This paper shows that a carbon levy on high-emitting inputs used for electricity generation can lead to successful decarbonisation.
    Keywords: carbon tax, electricity generation, synthetic control method
    JEL: D22 H23 Q41 Q48
    Date: 2019–06
  3. By: Andrey Rogalev (MPEI - Moscow Power Engineering Institute); Ivan Komarov (MPEI - Moscow Power Engineering Institute); Vladimir Kindra (MPEI - Moscow Power Engineering Institute); Olga Zlyvko (MPEI - Moscow Power Engineering Institute)
    Abstract: This paper provides a comparative entrepreneurial analysis of modern combined-cycle power generation technologies and future-oriented high-efficiency oxy-fuel combustion cycles with zero emissions. Considering the main criteria for sustainable development, we identify the generation technology that provides the lowest cost of electricity supply and the maximum economic efficiency of investments with equally high environmental indicators. Based on a comprehensive literature review and comparison of the technical and economic parameters of modern and forward-looking generation technologies under different economic conditions, the paper develops and presents the path of increasing the technical level of generation technologies, corresponding to the conditions of sustainable development at each moment of time. Furthermore, the paper analyses the technical and economic characteristics of the combined-cycle technology successfully applied in the world's energy systems and advanced oxy-fuel combustion cycles. In addition, the paper proposes a multifactorial economic-mathematical model that allows to evaluate the performance indicators of any of the considered technologies in accordance with the criteria for sustainable development.
    Keywords: sustainable development,power industry,greenhouse gas,power generation,economic efficiency,investment
    Date: 2018–09–30
  4. By: Behrang Shirizadeh (CIRED); Quentin Perrier (CIRED, I4CE); Philippe Quirion (CIRED, CNRS)
    Abstract: Many studies have demonstrated the feasibility of fully renewable power systems in various countries and regions. Yet the future costs of key technologies are highly uncertain and little is known about the robustness of a renewable power system to these uncertainties. We build 315 long-term cost scenarios on the basis of recent prospective studies, varying the costs of key technologies. We model the optimal renewable power system for France over 18 meteorological years, simultaneously optimizing investment and dispatch. Our results show that the optimal energy mix is highly sensitive to cost assumptions: the installed capacity in PV, onshore wind and power-to-gas varies by a factor of 5, batteries and offshore wind even more. Nevertheless, we have a robust result showing that the cost of a 100% renewable power system will not be higher than today. Finally, we show that the cost of not installing the absolutely ‘optimal’ mix is limited. Contrary to current estimates of increasing integration costs, this indicates that renewable technologies will become by and large substitutable.
    Keywords: Power system modelling, Variable renewables, Electricity storage, Robust decision making
    JEL: Q42
    Date: 2019–06
  5. By: Juan Jose Cortez (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); A. Bidaud (LPSC - Laboratoire de Physique Subatomique et de Cosmologie - UJF - Université Joseph Fourier - Grenoble 1 - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS - Institut Polytechnique de Grenoble - Grenoble Institute of Technology - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Gabin Mantulet (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, LPSC - Laboratoire de Physique Subatomique et de Cosmologie - UJF - Université Joseph Fourier - Grenoble 1 - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS - Institut Polytechnique de Grenoble - Grenoble Institute of Technology - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Elena Stolyarova (LPSC - Laboratoire de Physique Subatomique et de Cosmologie - UJF - Université Joseph Fourier - Grenoble 1 - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS - Institut Polytechnique de Grenoble - Grenoble Institute of Technology - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes)
    Abstract: Renewable energy sources are expected to take a very large share of electricity production in 2 degrees scenarios. The main objective of the study is to analyze the use of the demand response (DR) in high variable renewable depending electric power systems and explore the potential advantages of using DR to compensate intermittency. We also considered the interactions of DR with the entire power system, including the other flexibility options (storage, electric grid, and dispastchable power plants) using European Unit Commitment And Dispatch (EUCAD) model. In the supply and demand balance modelling, DR is similar to electricity storage: they both displace an electric load between two time-periods, although their technical operating constraints differ which makes their economic models and behaviours slightly different. We perform studies with very different renewable shares which are expected to be representative of different time horizons, today, in 2030 and 2060, years. We found that the need for implicit DR grows up to 20 % of the peak load but might have a value after which its use is saturated. Surprisingly, the competition with storage capacities appear to be very limited. Regarding to explicit DR, the level of usage is more sensible to the price when the high VRE claims for more flexibility.
    Keywords: Demand Response,Flexible electricity demands,Demand side management
    Date: 2019–05–29
  6. By: Lucas W. Davis; James M. Sallee
    Abstract: In many countries the revenue from gasoline taxes is used to fund highways and other transportation infrastructure. As the number of electric vehicles on the road increases, this raises questions about the effectiveness and equity of this financing mechanism. In this paper, we ask whether electric vehicle drivers should pay a mileage tax. Though the gasoline tax has been traditionally viewed as a benefits tax, we take instead the perspective of economic efficiency. We derive a condition for the optimal electric vehicle mileage tax that highlights a key trade-off. On the one hand, there are externalities from driving including traffic congestion and accidents that imply a mileage tax is efficient. On the other hand, gasoline tends to be underpriced, so a low (or even negative) mileage tax might be justified to encourage substitution away from gasoline-powered vehicles. We then turn to an empirical analysis aimed at better understanding the current policy landscape for electric vehicles in the United States. Using newly available nationally-representative microdata we calculate that electric vehicles have reduced gasoline tax revenues by $250 million annually. We show that the foregone tax revenue is highly concentrated in a handful of states and is highly regressive, as most electric vehicles are driven by high-income households, and we discuss how this motivates and informs optimal policy.
    JEL: D12 L62 Q41 Q54 Q55
    Date: 2019–07
  7. By: Andrea, Bastianin; Marzio, Galeotti; Michele, Polo
    Abstract: Over the period 2015-2050 the consumption of natural gas of European OECD countries is expected to grow more than the consumption of any other energy source. Although these countries are interconnected and in most cases share a common currency, their wholesale national gas markets are highly heterogeneous. We study the determinants of cross-country convergence of natural gas prices for industrial consumers in fourteen European countries. Our empirical analysis is based on the notions of pairwise, relative and convergence. We show that there is evidence of pairwise price convergence and that some key characteristics of gas markets, such as the maturity of trading hubs and the degree of interconnection, are positively associated with the existence of a convergence process. This result carries over to the notion of sigma-convergence and is robust to a number of changes in the implementation of the statistical tests. The analysis of relative convergence points to the existence of price-growth convergence, while price-level convergence is not supported by the data. Lastly, we assess the the short-run implications of price convergence focusing on the speed of reversion to equilibrium after a system-wide shocks hits the cointegrating relation.
    Keywords: convergence, natural gas price, trading hub, sigma-convergence; relative convergence
    JEL: C22 L95 Q02 Q41
    Date: 2018–12–06
  8. By: Jasper Meya (University of Oldenburg, Germany); Paul Neetzow (Humboldt-Universität zu Berlin, Germany)
    Abstract: Renewable energy (RE) policies are widely used to decarbonize power generation and implemented at various governance levels. We use an analytically tractable two-level model to study the eects of overlapping RE policies from the federal and state governments. We find that there are contrasting incentives for states to support RE deployment, depending on whether the federal government implements a feed-in tari (FIT) or an auction system. Under federal FIT, states that bear a greater burden in nancing the federal policy under-subsidize RE in order to reduce nationwide RE deployment and thereby lower their costs. Under federal auction, states that bear a greater burden to nance federal policy oversubsidize RE to drive down the quota price, and thereby also their costs. In an application to Germany, we illustrate that the recent shift from FIT to auctions increases incentives for state governments to support RE in the demand-intensive south, while decreasing them in the wind-abundant north.
    Keywords: auction, feed-in tariff, multi-level governance, fiscal federalism, overlapping regulation, energy transition
    Date: 2019–07
  9. By: Suyunchev, Marat (Суюнчев, Марат) (The Russian Presidential Academy of National Economy and Public Administration); Mozgovaya, Oksana (Мозговая, Оксана) (The Russian Presidential Academy of National Economy and Public Administration); Kuznetsov, Vasiliy (Кузнецов, Василий) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: This paper abstracts the results of research scientific work «The outlook of Retail electricity markets competition promotion», which studies the current situation of Retail electricity markets competition in Russian Federation and identifies the major setbacks to retail energy sales competition. The analysis of the foreign practice of Retail electricity markets competition promotion highlights the conditions that make possible the competition development. Based on the research findings proposals are made for expansion the number of Retail electricity markets participants, their obligations and responsibilities optimization to promote the competition on Retail electricity markets in Russian Federation.
    Date: 2019–07
  10. By: Berk, Istemi (Dokuz Eylul University); Çam , Eren (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: The global crude oil market has gone through two important phases over the recent years. The first one was the price collapse that started in the third quarter of 2014 and continued until mid-2016. The second phase occurred in late 2016, after major producers within and outside OPEC agreed to cut production in order to adjust the ongoing fall in oil prices, which is now known as the OPEC+ agreement. This paper analyzes the effects of these recent developments on the market structure and on the behavior of major producers in the market. To this end, we develop a partial equilibrium model with a spatial structure for the global crude oil market and simulate the market for the period between 2013 and 2017 under oligopolistic, cartel and perfectly competitive market structure setups. The simulation results reveal that, although the oligopolistic market structures fit overall well to the realized market outcomes, they are not successful at explaining the low prices during 2015 and 2016, which instead are closer to estimated competitive levels. Moreover, we further suggest that from 2014 onward, the market power potential of major suppliers has shrunk considerably, supporting the view that the market has become more competitive. We also analyze the Saudi Arabia- and Russia-led OPEC+ agreement, and find that planned production cuts in 2017, particularly of Saudi Arabia (486 thousand barrels/day) and Russia (300 thousand barrels/day), were below the levels of estimated non-competitive market structure setups. This explains why the oil prices did not recover to pre-2014 levels although a temporary adjustment was observed in 2017.
    Keywords: Crude Oil Market Structure; 2014 Oil Price Decline; OPEC+ Agreement; Market Simulation Model; DROPS
    JEL: C63 D43 Q31 Q41
    Date: 2019–07–15
  11. By: Alessandro Palma (University of Naples Parthenope & CEIS University of Rome "Tor Vergata"); Inna Petrunyk (Leuphana University Lueneburg); Daniela Vuri (CEIS & DEF University of Rome "Tor Vergata")
    Abstract: We investigate the impact of fetal exposure to air pollution on health outcomes at birth in Italy in the 2000s combining information on mother’s residential location from birth certificates with information on PM10 concentrations from air quality monitors. The potential endogeneity deriving from differential pollution exposure is addressed by exploiting as-good-as-random variation in rainfall shocks as an instrumental variable for air pollution concentrations. Our results show that both average levels of PM10 and days above the hazard limit have detrimental effects on birth weight, duration of gestation as well as overall health status at birth. These effects are mainly driven by pollution exposure during the third trimester of pregnancy and further differ in size with respect to the maternal socio-economic status, suggesting that babies born to socially disadvantaged mothers are more vulnerable. Given the non negligible effects of pollution on birth outcomes, further policy efforts are needed to fully protect fetuses from the adverse effects of air pollution and to mitigate the environmental inequality of health at birth.
    Keywords: pollution, particulate matter, birth weight, pre-term birth, environmental policies.
    JEL: I18 J13 Q53 Q58
    Date: 2019–07–12
  12. By: Bernard Lemoult (IMT Atlantique - IMT Atlantique Bretagne-Pays de la Loire); Samuel Aubin (Collège des transitions sociétales)
    Abstract: In order to succeed energy and social turnaround in an ever more complex world (Morin, 2015), it is necessary to involve as many actors as possible and to draw on collective intelligence. However, actors are numerous, and local governments are in charge of implementing with national ministries the territorial action plans focused on climate, air and energy. Regions have been appointed as leaders of regional energy policies. At the same time, energy professional unions are taking action at the level of micro regions to accompany the energy-climate action plans of groups of cities. Eventually, many other actors are involved : energy suppliers, professional unions, chambers of commerce, unions, local governments, NGOs, education providers, not for profit organizations, etc. As a result, all actors have to share common objectives and build up an energy turnaround community, which needs an enhancement of cooperation skills. The part played by Higher Education institutions can be a key success factor for several reasons. It is the case of the Mine of IMT Atlantic (formerly known as École des Mines de Nantes) which layed the-scientific, organizational and governance policy foundations of a territorial and cooperative action-research project. How to develop those turnaround communities and third parties groups to move from local logics of action to a system wide and inclusive way of thinking through a form of action research project? Acting all together is the challenge of the TES program, now officially notified as a cooperative action research project on social and energy turnaround. Acting together mainly draws on collective action engineering (Moisdon, 1984), implemented at territory level (Mottet, 2015).
    Abstract: Pour « réussir » la transition énergétique et sociétale, dans un monde de plus en plus complexe (Morin, 2015), il est commun d'appeler à la mobilisation du plus grand nombre d'acteurs et mobiliser l'intelligence collective. Or, les acteurs sont nombreux. Les intercommunalités sont en charge de la mise en oeuvre des Plans Climat Air Énergie Territoriaux (PCAET), en articulation avec les services de l'État. Les régions ont été désignées comme « chef de file de la politique énergétique régionale ». Dans le même temps, les syndicats d'énergie s'organisent à l'échelle départementale pour assurer leurs missions traditionnelles de gestion de réseau et de plus en plus pour accompagner les intercommunalités dans leurs démarches énergie-climat. Enfin, une multitude d'autres intervenants (opérateurs énergétiques, entreprises, fédérations pro-fessionnelles, chambres consulaires, syndicats, collectivités, ONG, organismes de formation, associations…) sont également concernés. Chacun va donc devoir faire « cause commune » et construire une véritable communauté régionale d'acteurs de la transition énergétique, ce qui suppose un renforcement des capacités de coopération. Pour répondre à ces enjeux, le rôle des établissements d'enseignement et de recherche peut être important, et ce à plusieurs titres. C'est ici le cas d'IMT Atlantique, anciennement École des mines de Nantes, qui a créé les conditions scientifiques, organisationnelles et politiques (au sens gouvernance du terme) d'une recherche-action territoriale et partenariale. Comment créer des « lieux de transition », des « espaces tiers », pour passer d'une logique et d'une pratique de pré-carré, à un imaginaire plus systémique, solidaire et coopératif au travers d'une forme de recherche-action ? C'est tout l'enjeu du « faire ensemble » qu'explore le programme TES, désormais affichée comme action-recherche partenariale sur les questions de Transition Énergétique et Sociétale. Faire ensemble relève en particulier d'une ingénierie de l'action collective (Moisdon, 1984), appliquée au niveau d'un territoire (Mottet, 2015).
    Keywords: action research,turnaround,social,collective,territory,cooperation,Collective intelligence,intelligence collective,action-recherche,transition,sociétal,collectif,territoire
    Date: 2018–12–01
  13. By: Zhenqian Huang (Macroeconomic Policy and Financing for Development Division, ESCAP)
    Abstract: Sustainable Development Goal (SDG) 7 calls for affordable, reliable, sustainable and modern energy for all. The Goal is particularly relevant to the Asia-Pacific region where rapid and sustained economic growth, an increasing population, expanding industrialisation and rapid urbanisation have driven strong growth in energy demand. Ensuring sufficient energy supply while moving to more sustainable energy resources is critical for sustainable development in the region.
    Date: 2019–04
  14. By: White, Dominic; Winchester, Niven; Atkins, Martin; Ballingall, John; Coates, Simon; Mercader, Ferran de Miguel; Greenhalgh, Suzie; Kerr, Andrew; Kerr, Suzi; Leaver, Jonathan; Leining, Catherine; Monge, Juan; Neale, James; Philpott, Andrew; Smart, Vincent; Stroombergen, Adolf; Suomalainen, Kiti
    Abstract: As New Zealand charts its course toward a low-emissions economy, the quality of energy-sector and multi-sector modelling is becoming increasingly important. This paper outlines why models are useful for answering complex questions, provides a stocktake of energy-sector and multi-sector models used for climate change mitigation modelling in New Zealand, and makes suggestions for improving future modelling work. While New Zealand is fortunate to have a range of different modelling tools, these have historically been used in a sporadic and ad hoc way, and underlying datasets are deficient in some areas. As the foundation for a more strategic development of New Zealand’s modelling capability, this paper profiles some of the energy-sector and multi-sector models and datasets currently applied in New Zealand. New Zealand’s modelling capability could be strengthened by collecting and sharing data more effectively; building understanding of underlying relationships informed by primary research; creating more collaborative and transparent processes for applying common datasets; increasing international collaboration; and conducting more integrated modelling across environmental issues. These improvements will require strategic policies and processes for refining model development; providing increased, predictable and sustained funding for modelling activities, underlying data collection and primary research; and strengthening networks across modellers inside and outside of government. Many of the suggested improvements could be realised by creating an integrated framework for climate change mitigation modelling in New Zealand. This framework would bring together a suite of models and a network of researchers to assess climate change mitigation policies regularly. Core elements of the framework would include a central repository of data, input assumptions and scenarios, and a “dashboard” that synthesises results from different models to allow decision-makers to understand and apply the insights from the models more easily.
    Keywords: Environmental Economics and Policy
    Date: 2018–11
  15. By: Voss, Achim
    Abstract: I analyze energy-efficiency policy as a prescription of a minimum-efficiency standard for energy-using household goods like cars, building insulation, and home appliances. Such a policy has two effects. At the intensive margin, a household that invests will choose a more efficient device. At the extensive margin, there will be more households that choose not to invest at all. Thus, additional to and different from rebound effects, energy-efficiency policy may have unintended consequences. I analyze the equilibrium effects of a minimum-efficiency standard, taking price adjustments and household heterogeneity into account. A moderate minimum-efficiency standard increases demand for efficiency-enhancing household capital goods, and reduces energy demand. More stringent policy is shown to be less effective or even counterproductive. For the case of a fixed supply of efficiency-enhancing capital, it is shown that minimum-efficiency standards increase equilibrium energy demand. Finally, I analyze which households benefit from minimum-efficiency standards and which ones lose. A standard induces investing households to expend more for household capital and less for energy. The wedge between the induced expenditures and the private optimum is analyzed as a deadweight loss.
    Keywords: Resource /Energy Economics and Policy
    Date: 2019–07–18
  16. By: Fleming, David A; Preston, Kate
    Abstract: Evaluating the benefits of publicly funded research is always a challenging task. This paper cannot produce air-tight quantification of the benefits of Sustainable Land Management and Climate Change (SLMACC) research. We do, however, demonstrate the key building blocks of significant impact have been obtained. First, it is clear that public funding has contributed importantly to New Zealand’s positioning itself as one of the leading global contributors to agricultural mitigation research. Second, the prominence of the research combined with the low likelihood of research occurring on this scale without public support suggests strongly that the results would not have been obtained absent public funding. Finally, though the realization of ultimate environmental and/or economic benefits will depend on the evolution of farming practices and climate change policy settings, the advances in genetic markers for low CH4 animals and identification of emission-reducing management practices have the potential for GHG emission reductions that would be significant in environmental terms, and whose value at likely carbon pricing levels would be in the hundreds of millions of dollars. Although the results discussed are conditional on several factors such as future policy implementation, adoption rates and the practical availability of mitigation options and practices for different farm landscapes; the impacts, economic and environmental values attached to mitigation research cannot be overlooked and provide important insights to the benefits that public investments can make to the development of a more sustainable agricultural system for the country.
    Keywords: Environmental Economics and Policy, Public Economics
    Date: 2018–08
  17. By: Svetlana Vegera (Polatsk State University); Alena Malei (Polatsk State University); Renata Trubovich (Polatsk State University)
    Abstract: Since the end of the 20th century, in the context of developing rational consumption of natural resources, energy efficiency and solving environmental problems related to the management and burial of municipal waste, there is a need to take into account the consumption of natural capital, its degradation, as well as to determine the growth of gaseous energy resources in assessing economic growth in both the whole country, and in a separate organization that buries municipal waste and extract biogas. Therefore, the authors set forward the objective of the research: to develop the account of gaseous resources stocks (biogas) and assimilation resource as elements of natural capital. For the purpose of the achievement of aim, the authors apply generally accepted economic research methods. The article considers the economic essence of assimilation and gaseous energy resources of municipal waste as new objects of accounting. Both accounting objects are considered as long-term assets. The authors propose an accounting model for natural resources, which provides with information on the consumption of ecosystem capital and its degradation. It is proposed to estimate the assimilation potential of the environment at fair value (according to the current market) in the presented accounting model. As a result of the study on the possibilities of applying parallel accounting for long-term natural resources, we propose to account the gaseous resources in two assessments: on the one hand, based on actual costs associated with investing in the formation and attraction of alternative technogenic energy resources in economic activity, on the other hand-at the fair value (current market value) of the methane stocks.
    Keywords: assimilative capacity,municipal waste,biogas,technogenic energy resource,mineral resource,natural capital,assimilation resource,assimilative potential
    Date: 2018–09–30
  18. By: Kreickemeier, Udo; Richter, Philipp M.
    Abstract: In this paper, we analyse the effects of a unilateral change in an emissions tax in a model of international trade with heterogeneous firms. We find a positive effect of tighter environmental policy on average productivity in the reforming country through reallocation of labour towards exporting firms. Domestic aggregate emissions fall, due to both a scale and a technique effect, but we show that the reduction in emissions following the tax increase is smaller than in autarky. Moreover, general equilibrium effects through changes in the foreign wage rate lead to a reduction in foreign emissions and, hence, to negative emissions leakage in case of transboundary pollution.
    Keywords: Strategic Environmental Policy,Firm Location,Carbon Leakage,General Equilibrium,Trade and environment,Heterogeneous firms,Unilateral environmental policy,Emissions leakage
    JEL: F18 F12 F15 Q58
    Date: 2019
  19. By: Lahrech, Mohamed Taha
    Abstract: This article finds interest in how to implement a targeting and financial transfer system to the population through the electricity bill. Within a context in which the subsidies system is going to be completely reformed and the social programs are in process of getting restructured, this article is bringing to surface this particular reform path through electricity that has long been studied by the Government, and which can be used either as an alternative system or as an add-on module of the national project of the identification and targeting system. The electricity bill approach offers multiple comparative advantages over cash transfer, and the choice of one or the other, or the combination of several systems together into a hybrid instrument would make it possible to achieve this social challenge and complete the crossing of Morocco towards a new generation social policy
    Keywords: targeting, compensation, electricity bill, reform, subsidies
    JEL: H20
    Date: 2019–07–06
  20. By: Matthew E. Kahn; Kamiar Mohaddes; Ryan N. C. Ng; M. Hashem Pesaran; Mehdi Raissi; Jui-Chung Yang
    Abstract: We study the long-term impact of climate change on economic activity across countries, using a stochastic growth model where labour productivity is affected by country-specific climate variables - defined as deviations of temperature and precipitation from their historical norms. Using a panel data set of 174 countries over the years 1960 to 2014, we find that per-capita real output growth is adversely affected by persistent changes in the temperature above or below its historical norm, but we do not obtain any statistically significant effects for changes in precipitation. Our counterfactual analysis suggests that a persistent increase in average global temperature by 0.04oC per year, in the absence of mitigation policies, reduces world real GDP per capita by 7.22 percent by 2100. On the other hand, abiding by the Paris Agreement, thereby limiting the temperature increase to 0.01oC per annum, reduces the loss substantially to 1.07 percent. These effects vary significantly across countries. We also provide supplementary evidence using data on a sample of 48 U.S. states between 1963 and 2016, and show that climate change has a long-lasting adverse impact on real output in various states and economic sectors, and on labour productivity and employment.
    Keywords: Climate change, economic growth, adaptation, counterfactual analysis
    JEL: C33 O40 O44 O51 Q51 Q54
    Date: 2019–07
  21. By: Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria)
    Abstract: Since the first oil well was drilled in Nigeria, traditional economies have suffered neglect, and rural youths do not see a future for themselves in traditional industries livelihood (TIL). We examine the impact of corporate social responsibility (CSR) of multinational oil companies (MOCs) on youths’ participation in TIL. A total of 1200 youths were sampled across the rural Niger Delta. Results from the use of a logit model indicate a significant relationship between CSR and TIL. The findings suggest increased general memorandum of understanding (GMoU) interventions in canoe-carving, pottery-making, cloth-weaving, mat-making, and basket-weaving to revive the traditional economic activities in Nigeria.
    Keywords: corporate social responsibility; multinational oil companies
    JEL: J43 O40 O55 Q10
    Date: 2019–01
  22. By: Yanfang Mo; Wei Chen; Li Qiu; Pravin Varaiya
    Abstract: An increasing concern in power systems is on how to elicit flexibilities in demands for better supply/demand balance. To this end, several differentiated energy services have been put forward, wherein demands are discriminated by their different flexibility levels. Motivated by the duration-differentiated energy services, we have proposed energy services differentiated by durations, arrival times, and deadlines. The purpose of this paper is to study the market implementation of such multiple-arrival multiple-deadline differentiated energy services. To verify the economic feasibility, we establish that in a forward market, there exists an efficient competitive equilibrium which attains the maximum social welfare. In addition, we show that future information will influence current decisions on power delivery by studying a special kind of causal allocation policy. Finally, we propose two tractable integer programs, namely the optimal arbitrage and the minimum-cost allocation problems, which can be embedded in a two-level hierarchical real-time implementation of differentiated energy services.
    Date: 2019–06
  23. By: Daniel Jeongdae Lee (Macroeconomic Policy and Financing for Development Division, ESCAP); Shuvojit Banerjee (Macroeconomic Policy and Financing for Development Division, ESCAP); Zheng Jian (Macroeconomic Policy and Financing for Development Division, ESCAP)
    Abstract: Infrastructure is critical to the achievement of the Sustainable Development Goals. It is represented in Goal 9 along with industrialization and innovation, but also implicit in many other Goals including food security, health, decent jobs and cities and human settlements. Among infrastructure sectors, progress on Goal 7 on clean energy would be critical for limiting global warming to well below two degrees Celsius. ESCAP’s Economic and Social Survey 2019 estimates that developing countries in the Asia-Pacific region would have to invest an additional $196 billion per year in transport, ICT and water and sanitation infrastructure, and new investments of $434 billion to achieve Goal 7 on affordable and clean energy for all.
    Date: 2019–04
  24. By: Biswas, Pradip; Verma, Jyotiprakash; Pohit, Sanjib
    Abstract: The biodiesel programme introduced by the Government of India in the beginning of this century represents a unique case of the development of numerous sustainable entrepreneurs, substantial employment generation for the poor and reduction of carbon footprints without compromising food security and thus promote equity and social justice. It is estimated that a 20% biofuel blending through domestic feedstock production would create 6.37 million sustainable entrepreneurs and185.15 million man-days per year by 2020. Given the availability of wasteland in the country this target is achievable. The two most important factors that restrained the success of the programme are the uncertainties in yield and seed prices for the farmers. As the domestic price of petroleum is linked to global crude price, any decline in the price of crude in the world market would reduce the feedstock prices in the local market. It therefore requires fixing minimum support prices for seeds and stabilizing yield at higher level through R&D. Given all this potential benefits and the recent trend of jobless growth in the country the programme deserves to be implemented more vigorously.
    Keywords: Biodiesel, Entrepreneurship, Jatropha, Employment, Marginal farmers
    JEL: Q20 Q21 Q29
    Date: 2018–11
  25. By: Seyyedmilad Talebzadehhosseini; Steven R. Scheinert; Amirarsalan Rajabi; Mostafa Saeidi; Ivan Garibay
    Abstract: Existing research argues that countries increase their production baskets based on the available capabilities, adding products which require similar capabilities to those already produced, a process referred to as path dependency. Expansions to include goods that use divergent capabilities from those currently in the economy requires a structural change in available capabilities. Structural changes in existing capabilities contributes to countries economic growth and development. Economic development increases environmental risks from higher consumption of energy and natural resources. Managing that risk is critical and a transition to a green economy can help. The main objective of this research is to determine if structural changes or path dependency drives the expansion in production of green economy products. We consider a dataset with 138 countries over the period of 2008 to 2017, with a focus on specific case study examples, including all countries in the world and China. The results of this research show countries increased their green production baskets based on their available capabilities following path dependency as well as by expanding to products that path dependency does not predict. This suggests that, while path dependency may explain some expansion in green economies, additional theories are needed to fully explain observed green economic expansion.
    Date: 2019–06
  26. By: Olive Nsababera (Department of Economics, University of Sussex, Brighton, UK)
    Abstract: This paper examines the long-term impact of refugee camps on the health of local residents in Tanzania. Taking height-for-age z-score (HAZ) as a proxy for health, the paper exploits the fact that different birth cohorts were exposed to different stages of the camps’ lifecycle. Temporal variation through birth cohorts is combined with geographic variation in a difference-in-difference estimation approach. First, the paper examines the generation that were children at the opening of the camps and are now adults (as of 2012). It finds a negative and localised health effect that has persisted into adulthood. The result is comparable to a 2.9% to 5.9% reduction in adult hourly earnings. However, those that were exposed for a longer duration were less affected suggesting that subsequent economic development around camps mitigated the initial adverse effect. Second, this paper compares the subsequent generation that was born once the camps were already in operation, and those born after camps closed. It finds no observable difference in the HAZ score between those born during camps operation and in the post-camp period.
    Keywords: refugees, child health, Tanzania
    JEL: I15 O10 O15 J13
    Date: 2019–07
  27. By: Udo Kreickemeier; Philipp M. Richter
    Abstract: In this paper, we analyse the effects of a unilateral change in an emissions tax in a model of international trade with heterogeneous firms. We find a positive effect of tighter environmental policy on average productivity in the reforming country through reallocation of labour towards exporting firms. Domestic aggregate emissions fall, due to both a scale and a technique effect, but we show that the reduction in emissions following the tax increase is smaller than in autarky. Moreover, general equilibrium effects through changes in the foreign wage rate lead to a reduction in foreign emissions and, hence, to negative emissions leakage in case of transboundary pollution.
    Keywords: Trade and environment; Heterogeneous firms; Unilateral environmental policy; Emissions leakage
    JEL: F18 F12 F15 Q58
    Date: 2019
  28. By: Omar Masood (University of Lahore); Manuela Tvaronavičienė (Vilnius Gediminas Technical University); Kiran Javaria (University of Lahore)
    Abstract: The aim of the study is to investigate the impact of oil prices on the stock market of G7 countries. Oil prices not only affect the economy of a country but also the country's stock market. The stock market affects the stock valuation or, to put in another way, the company's stock value. The stock value is associated with the discounted sum of predictable future cash flows and these flows may be distressed by macroeconomic variables including oil prices fluctuations. This study has researched the impact of oil prices' fluctuation on countries included G7, i.e.. For the analysis, the most recent data is collected. In this study, the real stock return has considered as a depended variable or predict variable, while oil prices, industrial production, and short-term interest rate are as independent, or predictor variables. The study is quantitative in nature. All data was collected from OECD website with the exception of oil prices, which were taken from oil intelligence report. The model, which has been used in the study is based on Arbitrage pricing theory-APT model, where financial assets are associated with macroeconomic variables. The results showed that Industrial production is positively associated with a real stock return in the case of Germany, Italy, Japan, the United Kingdom, and France, while the short-term interest rate is negatively connected with a real stock return in the case of Canada, the United Kingdom, and United States of America. Oil prices have an insignificant effect on real stock markets of all considered countries. The authors provide an economic interpretation of the obtained results.
    Keywords: oil prices,industrial production,short-term interest rate,real stock return,G7 countries,Arbitrage Pricing Theory
    Date: 2019–06–30
  29. By: Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa)
    Abstract: This study investigates how increasing economic development affects the green economy in terms of CO2 emissions, using data from 44 countries in the SSA for the period 2000-2012. The Generalised Method of Moments (GMM) is used for the empirical analysis. The following main findings are established. First, relative to CO2 emissions, enhancing economic growth and population growth engenders a U-shaped pattern whereas increasing inclusive human development shows a Kuznets curve. Second, increasing GDP growth beyond 25% of annual growth is unfavorable for a green economy. Third, a population growth rate of above 3.089% (i.e. annual %) has a positive effect of CO2 emissions. Fourth, an inequality-adjusted human development index (IHDI) of above 0.4969 is beneficial for a green economy because it is associated with a reduction in CO2 emissions. The established critical masses have policy relevance because they are situated within the policy ranges of adopted economic development dynamics.
    Keywords: CO2 emissions; Economic development; Africa
    JEL: C52 O38 O40 O55 P37
    Date: 2019–01
  30. By: Luciana Palmeira Braga (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes)
    Date: 2018–09–28

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