nep-ene New Economics Papers
on Energy Economics
Issue of 2019‒09‒16
forty-five papers chosen by
Roger Fouquet
London School of Economics

  1. The role of housing to identify Fuel Poverty By Paloma Taltavull de La Paz; Francisco Juarez; Paloma Monllor
  2. Energy Conversion Rate Improvements, Pollution Abatement Efforts and Energy Mix: The Transition toward the Green Economy under a Pollution Stock constraint By Jean-Pierre Amigues; Michel Moreaux
  3. Investment in development of renewable energy sources and energy efficiency in the global housing sector: main futures, regulation, trends By Oksana Papelnyuk; Ekaterina Nezhnikova
  4. The Simple Economics of Global Fuel Consumption By Doga Bilgin; Reinhard Ellwanger
  5. The Consequences of Unilateral Withdrawals from the Paris Agreement By Mario Larch; Joschka Wanner
  6. Do Global Crude Oil Markets Behave as One Great Pool? By NIYATI BHANJA
  7. French Attitudes over Climate Change and Climate Policies By Thomas Douenne; Adrien Fabre
  8. Multidimensional relatedness between innovation systems in sustainability transitions By Tuukka Mäkitie; Allan D. Andersen; Jens Hanson
  9. The power of collective intelligence to connect real estate and mobility By Maldini Sylla; Andrée De Serres; Ahlem Hajjem; Elia Duchesne
  10. Climate Policy under Spatial Heat Transport: Cooperative and Noncooperative Regional Outcomes By Yongyang Cai; William Brock; Anastasios Xepapadeas; Kenneth Judd
  11. Private langfristige Stromabnahmeverträge (PPAs) für erneuerbare Energien: kein Ersatz für öffentliche Ausschreibungen By Nils May; Karsten Neuhoff
  12. Can We Reconcile French People with the Carbon Tax? Disentangling Beliefs from Preferences By Thomas Douenne; Adrien Fabre
  13. Ambitious Emissions Goal as a Strategic Preemption By Hiroaki Yamagami; Ryo Arawatari; Takeo Hori
  14. On the transmission channels for the resource curse By K. Peren Arin; Elias Braunfels; Christina Zenker
  15. The Interplay between Oil and Food Commodity Prices: Has It Changed over Time? By Gert Peersman; Sebastian K. Rüth; Wouter Van der Veken
  16. Mixed Causal-Noncausal Autoregressions: Bimodality Issues in Estimation and Unit Root Testing By Frédérique Bec; Heino Bohn Nielsen; Sarra Saïdi
  17. Oil price shocks, monetary policy and current account imbalances within a currency union By Ansgar Belke; Timo Baas
  18. The relevance of wholesale electricity market places: the Nordic case By Spodniak, Petr; Ollikka, Kimmo; Honkapuro, Samuli
  19. CO2-Steuer, Zertifikate-Handel und Innovationsförderung als Klimapolitik-Instrumente By Paul J.J. Welfens
  20. Should one follow movements in the oil price or in money supply? Forecasting quarterly GDP growth in Russia with higher†frequency indicators By Heiner Mikosch; Laura Solanko
  21. Pricing Reliability Options under different electricity prices' regimes By Luisa Andreis; Maria Flora; Fulvio Fontini; Tiziano Vargiolu
  22. Monthly Report No. 2/2019 By Andrei V. Belyi; Peter Havlik; Artem Kochnev; Ilya B. Voskoboynikov
  23. Bio-economy and the sustainability of the agriculture and food system: Opportunities and policy challenges By Dimitris Diakosavvas; Clara Frezal
  24. How social housing tenants respond when their homes are made more energy efficient By Coyne, Brian; Lyons, Seán; McCoy, Daire
  25. Ghana Power Compact: Evaluation Design Report By Duncan Chaplin; Delia Welsh; Arif Mamun; Nick Ingwersen; Kristine Bos; Erin Crossett; Poonam Ravindranath; Dara Bernstein; William Derbyshire
  26. Economic Operation of Grid-Connected Microgrid By Multiverse Optimization Algorithm By Mahdavi, Sadegh; Bayat, Alireza; Mirzaei, Farzad
  27. Wind Energy and Agricultural Production – Evidence from Farm-Level Data By Chen, Tengjiao
  28. Estimation and Projection of Petroleum Demand and Tax Collection from Petroleum Sector in India. By Mukherjee, Sacchidananda
  29. Air Pollution Violations in China By Guo, Wei
  30. Cooperation in the climate commons By Carattini, Stefano; Levin, Simon; Tavoni, Alessandro
  31. Tying enforcement to prices in emissions markets: An experimental evaluation By John K. Stranlund; James J. Murphy; John M. Spraggon; Nikolaos Zirogiannis
  32. Consumer Awareness of Plug-in Electric Vehicles: A Study of Sacramento By Hardman, Scott; Jang, Nora; Garas, Dahlia
  33. Moments-Based Spillovers across Gold and Oil Markets By Matteo Bonato; Rangan Gupta; Chi Keung Marco Lau; Shixuan Wang
  34. The effects of an incremental increase in the Irish carbon tax towards 2030 By De Bruin, Kelly C; Yakut, Aykut Mert
  35. Product-Service System for Autonomous Vehicles: a preliminary typology studies By Fabio Antonialli; Bruna Habib Cavazza; Rodrigo Gandia; Joel Sugano; André Zambalde; Isabelle Nicolaï; Arthur de Miranda Neto
  36. Self- Supplied Microgrid Economic Scheduling Based on Modified Multiverse Evolutionary Algorithm By Bayat, Alireza; Mahdavi, Sadegh; Mirzaei, Farzad
  37. Macroeconomic and Financial Policies for Climate Change Mitigation: A Review of the Literature By Signe Krogstrup; William Oman
  38. Carbon tax and stability of the economy: for an extension of the problem of the double dividend of ecological taxation By Nicolas Piluso; Clement Rau
  39. Measuring energy poverty in Poland with the Multidimensional Energy Poverty Index By Stefan Bouzarovski; Aneta Kie³czewska; Piotr Lewandowski; Jakub Soko³owski
  40. Examining the Spillover Effects of Ethanol Prices on the Import Demand for Corn By Suh, Dong Hee
  41. The Impact of Social Variables on Financial Performance By Christopher Lim
  42. Stick or switch? Consumer switching in 14 retail markets across Europe By Harold, Jason; Cullinan, John; Lyons, Seán
  43. El mercado eléctrico: los agentes y la discusión sobre su diseño By Joan Batalla Bejerano; Elisenda Jové-Llopis
  44. Information Avoidance, Selective Exposure, and Fake(?) News-A Green Market Experiment By Katharina Momsen; Markus Ohndorf
  45. Promoting biogas and biomethane production: Lessons from cross-country studies By Zhu, Tong; Curtis, John; Curtis, Matthew

  1. By: Paloma Taltavull de La Paz; Francisco Juarez; Paloma Monllor
    Abstract: The analysis of energy poverty has attracted increasing interest in some countries, including the United Kingdom, Ireland, Austria and New Zealand. Thomson and Snell (2013) examine the EU case as a whole. These studies have provided empirical evidence suggesting that households with some members over 60 years of age, families with children, disabled or chronically ill persons are the most vulnerable groups (ITD, 2001, pp. 8-9, cited in Boardman 2012: p 23) when it comes to energy poverty. The reason for this lies in the fact that their energy costs are higher than other basic needs (O' Neill et al., 2006). Empirical evidence also suggests that energy expenditure is essential; In fact, households could be considered as a "captive demand" affected by market control decisions - pricing - and this has severe social effects.The relevance of this problem is twofold. Firstly, because an adequate temperature in the home ensures well-being at any income level. Secondly, because high energy costs could reflect low energy efficiency in buildings, which aggravates poverty situations. Reducing the energy bill does not necessarily imply a cold environment when buildings are energy efficient, a condition that could guarantee both lower energy costs and an adequate temperature if this problem is addressed to eradicate it. The latter relates energy poverty to the energy efficiency of buildings - a key element of EU energy policy to ensure the medium-term sustainability of cities in the European Union. If solutions are found to reduce fuel poverty problems, a twofold objective would be achieved: (a) to reduce energy consumption through a more balanced energy consumption scheme in buildings; and (b) to improve the health and welfare levels of disadvantaged households by reducing energy cost payments based on lower consumption. Incentive policies for investment in rehabilitation are the most widely accepted as they improve energy efficiency and reduce energy poverty.The literature does not contain evidence that measures the sensitivity of energy poverty on changes in poverty levels or that assess the impact of property rates on energy scarcity. Economic logic supports the idea that a sudden fall in income can reduce the purchasing power and could have different effects on energy poverty levels depending on the type of tenure. In this paper, an indicator is calculated that identifies energy poverty in households using the Household Condition Survey (EU-Silk) for Spanish region, combining differently available indicators that allow an approximation to this phenomenon. It takes into account the structure of housing tenure and the level of poverty to explain fuel poverty. The present paper adds empirical evidence of the existence of fuel poverty using Spanish statistics to test two hypotheses. Ho1 is whether and how (housing) deprivation signals are linked to fuel poverty; whereas Ho2 tests the role of fuel poverty as an element directly related to poverty. They both allow us to support the Boardman (2012) views about the group of households affected the most by fuel poverty. This paper hypothesizes that a household is poor in energy if it cannot pay the electricity bill with the available resources. This implies that households whose income is close to a precarious without necessarily reaching the poverty line are considered (as there is no information on the cost of the electricity bill per household, it is not possible to apply the 10% rule nor to analyze whether households fall below the poverty line after paying the electricity bill).The situation of the energy poor is approached by parameterizing a set of variables that capture the existence of energy poverty. The methodology used is based on an extraction of factors that include all these variables and capture their explanatory capacity to explain the situation of energy poverty. The factorial calculation is that the method extracts the common behaviour of these variables and combines them (linearly) in such a way that a variable is constructed that is an explanation of individual facts related to the analyzed phenomenon. Results suggest that the extracted factors combined with housing tenure characteristics, determine the existence of three main groups of fuel poor: (1) energy poverty derived from the status of' poor household', (2) energy poverty derived from the inadequacy of housing to household and (3) energy poverty derived from the low quality of housing. Using these factors in their standardized form, households are classified into two groups: those who suffer and those who do not energy poverty.
    Keywords: Energy Consumption; Fuel Poverty; Housing demand; Tenure
    JEL: R3
    Date: 2019–01–01
  2. By: Jean-Pierre Amigues (TSE(INRA)); Michel Moreaux (TSE(UT Capitole))
    Abstract: To prevent climate change, three options are currently considered: improve the energy conversion efficiency of primary energy sources, develop carbon free alternatives to polluting fossil fuels and abate potential emissions before they are released inside the atmosphere. We study the optimal mix and timing of these three mitigation options in a stylized dynamic model. Useful energy can come from two sources: a non-renewable fossil fuel resource and a carbon free renewable resource. The conversion efficiency rate of fossil energy into useful energy is open to choice but higher conversion rates are also more costly. The economy can abate some fraction of its potential emissions and a higher abatement rate incurs higher costs. The society objective is to maintain below some mandated level, or carbon cap, the atmospheric carbon concentration. In the empirically relevant case where the economy is actually constrained by the cap, at least temporarily, we show that the optimal path is a sequence of four regimes: a 'pre-ceiling' regime before the economy is actually constrained by the cap, a 'ceiling' regime at the cap, a 'post-ceiling' regime below the cap and a final regime of exclusive exploitation of renewable resources. If the abatement option has ever to be used, it should be started before the beginning of the ceiling regime, first at an increasing rate and at a decreasing rate once the cap constraint binds. The efficiency performance from any source steadily improves with the exception of a time phase under the ceiling regime when it is constant. Renewables take progressively a larger share of the energy mix but their exploitation may be delayed significantly. Absolute levels of carbon emissions drop down continuously but follow a non monotonic pattern in per useful energy unit relative terms.
    Keywords: energy efficiency, carbon pollution, non-renewable resources, renewable resources, abatement
    JEL: Q00 Q32 Q43 Q54
    Date: 2019–09
  3. By: Oksana Papelnyuk (National Research Moscow State University of Civil Engineering); Ekaterina Nezhnikova (People Friendship university of Russia)
    Abstract: Today, energy supply has become one of the main problems of the mankind. Needs in energy increase as technology develops. It is expected that by 2035 the world energy consumption will have increased threefold as compared to 1998. In response to these needs, fossil fuel reserves are being rapidly depleted. The widespread use of traditional energy sources in the housing, transportation and industrial sectors complicates the problem even more.Demographic, economic and cultural changes increase energy consumption in the housing sector and cause even higher levels of the related greenhouse gas emissions. The goal of this work is to identify opportunities for developing renewable energy sources (RES) in the housing sector to improve its energy efficiency.The results of the study show that the construction industry, and especially the housing sector, can save more energy as compared to other types of the energy use. RES are important in reducing CO2 emissions in the housing sector and in improving the energy efficiency of buildings. In recent years, the production and consumption of energy from renewable sources in the housing sector have increased. However, the main volume of energy consumption in buildings is provided by fossil fuels. The main barriers to the introduction of renewable energy in the DNC housing system are financial ones, as well as logistical problems of biomass transportation and storage. To reduce these barriers, the authors offer a number of measures, including the governmental support for the use of renewable energy in the systems of heat supply and cooling of buildings, as well as the creation of storage facilities for renewable energy.
    Keywords: Investment, energy sources, renewable energy sources, housing sector
    Date: 2019–06
  4. By: Doga Bilgin; Reinhard Ellwanger
    Abstract: This paper presents a structural framework of the global oil market that relies on information on global fuel consumption to identify flow demand for oil. We show that under mild identifying assumptions, data on global fuel consumption help to provide comparatively sharp insights on elasticities and other key structural parameters of the global oil market. The estimated elasticity of global fuel demand in the short run with respect to crude oil prices is around -2 percent, which is considerably more inelastic than estimates of local fuel demand elasticities based on disaggregated data. Our framework is particularly suitable for understanding the evolution of quantities in the global oil market and provides new evidence on the magnitude of different types of oil price shocks and their macroeconomic and environmental impacts.
    Keywords: Economic models
    JEL: C51 L71 Q41 Q43
    Date: 2019–09
  5. By: Mario Larch; Joschka Wanner
    Abstract: We develop a multi-sector structural trade model with emissions from production and a con- stant elasticity of fossil fuel supply function to simulate the consequences of unilateral withdrawals from the Paris Agreement. Taking into account both direct and leakage effects, we find that a US withdrawal would eliminate a third of the world emissions reduction (25.7% direct effect and 7% leakage effect), while a potential Chinese withdrawal lowers the world emission reduction by 19.4% (8.2% direct effect and 11.2% leakage effect). The substantial leakage is primarily driven by technique effects induced by falling international fossil fuel prices.
    Keywords: climate change, international trade, carbon leakage, fossil fuel supply
    JEL: F14 F18 Q56
    Date: 2019
  6. By: NIYATI BHANJA (MICA-The School of Ideas)
    Abstract: In energy economics literature, the controversial assertion of whether crude oil markets are regionalized (Weiner; 1991) or behave as one unified entity (Adelman; 1984) is still an unsettled debate. While the proponents of globalization hypothesis trust that the crude oil markets behave as one big pool, the advocates of regionalization believe that they are segmented. The recent years? experience with the growing price spread between West Texas Intermediate (WTI) and Brent Crude, the two most influential light crude oil benchmarks of North America and Europe respectively, the debate has specifically become a point of discussion and deliberation within international energy forums.. Globalization in crude oil markets refers to the presence of strong co-movements. On the contrary, if the markets are fragmented and display least association, they are considered to be regionalised. An insight into the nature of the global oil market is critical in understanding the dynamics of international crude oil prices as well as its economic and financial implications.
    Keywords: Crude Oil, Globalization, Regionalization, Wavelet
    JEL: F42
    Date: 2019–06
  7. By: Thomas Douenne (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne); Adrien Fabre (Paris School of Economics, Université Paris 1 Panthéon-Sorbonne)
    Abstract: This paper aims to assess the prospects for French climate policies after the Yellow Vests crisis halted the planned increase in the carbon tax. From a large representative survey, we elicit knowledge, perceptions and values over climate change, we examine opinions relative to carbon taxation, and we assess support for other climate policies. Specific attention is given to the link between perceptions of climate change and attitudes towards policies. The paper also studies in details the determinants of attitudes in terms of political and socio-demographic variables. Among many results, we find limited knowledge but high concern for climate change. We also document a large rejection of the carbon tax but majority support for stricter norms and green investments, and reveal the rationales behind these preferences. Our study entails policy recommendations, such as an information campaign on climate change. Indeed, we find that climate awareness increases support for climate policies but no evidence for the formation of opinions through partisan cues as in the US, suggesting that better access to science could foster support for the ecology.
    Keywords: Climate Policy, Carbon tax, Preferences, Acceptability, France
    JEL: D78 H23 Q54 Q58
    Date: 2019–09
  8. By: Tuukka Mäkitie; Allan D. Andersen; Jens Hanson
    Abstract: Recent literature in sustainability transition studies has suggested that established industries may provide resources for innovation in low-carbon technologies. This literature, however, has this far not explained why such resource redeployment takes place. Literature in evolutionary economic geography and management studies, however, have discussed such interactions through the notion of relatedness as an underlying factor. Drawing on these literatures we develop an integrated framework for the analysis of multidimensional relatedness between innovation systems in the context of sustainability transitions. Using semi-structured interviews, we study the technological, institutional and network relatedness between the oil and gas industry and the offshore wind power technology in Norway. Our results show that despite the high relatedness in offshore technologies, low relatedness in terms of institutions has challenged the resource redeployment from the Norwegian oil and gas industry to offshore wind power. We thus suggest that relatedness, understood in multiple structural dimensions, can help to understand why resource redeployment from established industries to technological innovation systems may, or may not, take place.
    Keywords: multidimensional relatedness, innovation systems, sustainability transitions, oil and gas industry, offshore wind power
    JEL: O33 Q55
    Date: 2019–09
  9. By: Maldini Sylla; Andrée De Serres; Ahlem Hajjem; Elia Duchesne
    Abstract: Many advances have been made in research in the field of sustainable building (Dridi, 2017) as well as in the field of sustainable mobility (Banister, 2008). There is a close link between real estate, considered as a generator of displacement, and sustainable mobility, a concept that aims to rethink travel, better plan and reduce its carbon footprint. In fact, it is because buildings are immobile that we have to be mobile. Thus, the question asked in this research is: what role for sustainable real estate in the co-construction of mobility?On the environmental front, the real estate and transportation sectors are responsible for a significant contribution to GHG production and global warming. The last Intergovernmental Panel on Climate Change (IPCC) report published in October 2018 shows that the Paris Agreements, aiming to limit global warming below 2°C to 2100, will not be achieved if we do not put more efforts. In fact, ""global underwriting under the influence of the NDCs, global warming is expected to surpass 1.5°C, even if they are supplemented with very challenging increases in scale and ambition of mitigation after 2030 (high confidence)."" (IPCC, 2018). Therefore, it is important to be reactive and act on topics with huge impacts on the global warming. Global warming is caused by greenhouse gases (GHG) emissions, one of the greatest threats to ecosystems (IPCC, 2018). According to the International Energy Agency, 15% of all of GHGs are produced by the road transport (IEA, 2016). If nothing is done to counter this trend, the situation will worsen knowing that the global population is expected to increase to 9.8 billion in 2050 and 11.2 billion in 2100 (United Nation, 2017), with already 5 billion of urban population in 2030 (Seota, Güneralpa and Hutyrac, 2012). Therefore, it is important to rethink the way we move in order to reduce the need to travel (Banister, 2008).The adoption of an ecosystem approach makes possible the identification of the existing links and interdependencies, between the actors involved in these two spheres of activity, and facilitates the global assessment of their environmental, social and economic impacts. As a result, the research project aims to take a step towards the adoption if this ecosystem-based approach by bringing together experts from both sectors to analyze their perception of the impacts generated by their projects on the other sector. Our basic premise is that a better understanding of the impacts of the projects implemented respectively by the actors in each of these two sectors can potentially provide avenues to better understand the interdependencies and interrelationships between real estate and mobility. Even better, it can contribute positively to sustainable development.We conducted a first exploratory research to explore and measure the perception of real estate and mobility experts on the interdependence between sustainable real estate and mobility. In order to do that, we analysed the data collected during a workshop organised in 2018, conducted a survey and interviews.The workshop “Sustainable real estate and mobility” was conducted at the World Summit on Sustainable Mobility, Movin'On 2018, organized by Michelin in Montreal. The ""burning question"" of this workshop was “What role will real estate play in the co-construction of mobility?” We have collected and analysed the responses from a questionnaire distributed at the beginning of the workshop to 44 participants. This first material analyzed with SPSS, was aiming to determine the profile of the participants and their understanding of the mobility-real estate link. In addition, we realized nine interviews conducted with experts. We also analyzed material used during the workshop (drawings and sticky notes), which was interpreted by the experts during interviews. These interviews have been coded and analyzed with NVivo software in order to understand the perception of the experts towards this link sustainable real estate and mobility.Interviews revealed that participants perceived the interaction between sustainable real estate and mobility around concepts such as nature, mixed use, architecture, collaboration and transportation. Surveys show that respondents believe that real estate projects they know will transform the way we use buildings in a long-term horizon. With regard to mobility, respondents believe that the mobility projects they know will transform the way we move in a short term horizon. Already, we can see differences in the time horizon of the perception of the impacts produced by the projects carried out respectively in real estate and mobility. This difference raises the question whether the impacts of one on the other are well taken into consideration.The main success factors for the integration of real estate and mobility according to the survey seems to come mainly from significant economic interest (39.5%), a strong and sustained social action (25.6%), a well-adjusted regulation (27.9%) and others (7%).The results also reveal that respondents consider that the type of change required for successful real estate-mobility integration are organizational (33.8%) and behavioural (33.8%) with the same importance. The technological factor (22.1%) and others (10.4%) appears less important.In conclusion, results from the interviews show that the perception of the real estate - mobility link in the living areas has to include nature in order to motivate the citizens to adopt active mobility. Results also indicates that buildings within neighborhoods should consider the integration of mixed use and complementary services to reduce the need to travel. This first research explored the perception of actors, involved in real estate or mobility projects, on the contribution of sustainable real estate in the deployment of new mobility. It opens research avenues for the development of indicators to measure the evolution of this perception. The results also reveal the interest of the subject and the need for additional subsequent research to analyze the evolution of the perception of these actors.
    Keywords: Mobility; real estate; sustainability; Sustainable Building
    JEL: R3
    Date: 2019–01–01
  10. By: Yongyang Cai; William Brock; Anastasios Xepapadeas; Kenneth Judd
    Abstract: We build a novel stochastic dynamic regional integrated assessment model (IAM) of the climate and economic system including a number of important climate science elements that are missing in most IAMs. These elements are spatial heat transport from the Equator to the Poles, sea level rise, permafrost thaw and tipping points. We study optimal policies under cooperation and noncooperation between two regions (the North and the Tropic-South) in the face of risks and recursive utility. We introduce a new general computational algorithm to find feedback Nash equilibrium. Our results suggest that when the elements of climate science are ignored, important policy variables such as the optimal regional carbon tax and adaptation could be seriously biased. We also find the regional carbon tax is significantly smaller in the feedback Nash equilibrium than in the social planner's problem in each region, and the North has higher carbon taxes than the Tropic-South.
    Date: 2019–09
  11. By: Nils May; Karsten Neuhoff
    Abstract: Der Ausbau von erneuerbaren Energien hat in Deutschland lange nur eine Richtung gekannt: steil nach oben. Jüngst ist er aber ins Stocken geraten, speziell der Wind-kraftausbau ist längst nicht mehr so dynamisch wie früher und nicht so, wie er sein sollte, damit Deutschland seine Ausbauziele für Erneuerbare und seine Klimaziele erreicht. In diesem Kontext werden Privat-abgesicherte PPAs (Power Purchase Agreements, also Langfristverträge) für Wind- und Solarenergie in der Branche eifrig diskutiert, erste Verträge wurden hierzulande bereits abgeschlossen. Diese Verträge sichern überwiegend für ältere Windkraftanlagen, die nach 20 Jahren nicht mehr im EEG gefördert werden, die Erlöse für zwei bis fünf Jahre ab, damit Reinvestitionen in die Verlängerung der Lebenszeit finanziert werden können. Können PPAs auch öffentliche Vergütungsmechanismen für Neuanlagen ersetzen? Analysen zeigen, dass das keineswegs der Fall ist.
    Date: 2019
  12. By: Thomas Douenne (Paris School of Economics – Université Paris 1 Panthéon Sorbonne); Adrien Fabre (Paris School of Economics – Université Paris 1 Panthéon Sorbonne)
    Abstract: Using a new survey and National households' survey data, we investigate French perception over carbon taxation. We find that French people largely reject a tax and dividend policy where revenues of the tax would be redistributed uniformly. However, their perception about the properties of the tax are biased: people overestimate the negative impact on their purchasing power, wrongly think the scheme is regressive, and do not perceive it as environmentally effective. Our econometric analysis shows that correcting these three bias would suffice to generate majority acceptance. Yet, we find that people's beliefs are persistent and their revisions biased towards pessimism, so that only few can be convinced.
    Keywords: Climate Policy, Carbon tax, Bias, Beliefs Preferences
    JEL: D72 D91 H23 H31 Q58
    Date: 2019–05
  13. By: Hiroaki Yamagami (Seikei University); Ryo Arawatari (Doshisha University); Takeo Hori (Tokyo Institute of Technology)
    Abstract: We model a political game where a policymaker pledges a domestic emissions goal in the context of instrument choice between carbon pricing (CP) and a quota approach. We show that, although the policymaker faces an emissions goal proposed from an international environmental agreement, she may pledge a more stringent emissions than the proposed level. We define this stringent goal as an “ambitious emissions goal". We show that the ambitious emissions goal acts as a strategy for the policymaker that preempts the industry's lobby in a subsequent stage. We also suppose that, if CP is introduced, a rent-seeking contest for the CP revenue refund is held. Then, if the contest is socially costly enough, CP is no longer an optimal instrument. Finally, we extend the model of one country to that of two symmetric countries. A Nash equilibrium where both countries pledge the ambitious emissions goals remains.
    Keywords: Lobby, Carbon pricing, Voluntary approach, Revenue refund, Rent-seeking
    JEL: D72 Q58
    Date: 2019–09
  14. By: K. Peren Arin; Elias Braunfels; Christina Zenker
    Abstract: Recent literature shows that oil revenues may have a positive effect on long-run economic growth. However, there is no clear evidence for such an effect in the medium-run, suggesting the existence of a so-called resource-curse in the medium-run. Taking this as a starting point, we investigate all the transmission channels through which oil revenues can retard growth in the medium-run within a Bayesian Model Averaging (BMA) framework. Our results show that oil revenues have indeed a negative effect on the medium-run economic growth, which is transmitted through medium-term trends in oil prices and (poor) institutional quality.
    Date: 2019–09
  15. By: Gert Peersman; Sebastian K. Rüth; Wouter Van der Veken (-)
    Abstract: Using time-varying BVARs, we find that oil price increases caused by oil supply shocks did not affect food commodity prices before the start of the millennium, but had positive spillover effects in more recent periods. Likewise, shortfalls in global food commodity supply—resulting from bad harvests—have positive effects on crude oil prices since the early 2000s, in contrast to the preceding era. Remarkably, we also document greater spillover effects of both supply shocks on metals and minerals commodity prices in recent periods, as well as a stronger impact on the own price compared to earlier decades. This (simultaneous) time variation of commodity price dynamics cannot be explained by the biofuels revolution and is more likely the consequence of heightened informational frictions and information discovery in more globalized and financialized commodity markets.
    Keywords: Commodity markets, food prices, oil prices, spillovers
    JEL: E31 F30 G15 Q11 Q41
    Date: 2019–09
  16. By: Frédérique Bec; Heino Bohn Nielsen; Sarra Saïdi (Université de Cergy-Pontoise, THEMA)
    Abstract: This paper stresses the bimodality of the widely used Student's t likelihood function applied in modelling Mixed causal-noncausal AutoRegressions (MAR). It first shows that a local maximum is very often to be found in addition to the global Maximum Likelihood Estimator (MLE), and that standard estimation algorithms could end up in this local maximum. It then shows that the issue becomes more salient as the causal root of the process approaches unity from below. The consequences are important as the local maximum estimated roots are typically interchanged, attributing the noncausal one to the causal component and vice-versa, which severely changes the interpretation of the results. The properties of unit root tests based on this Student's t MLE of the backward root are obviously affected as well. To circumvent this issues, this paper proposes an estimation strategy which i) increases noticeably the probability to end up in the global MLE and ii) retains the maximum relevant for the unit root test against a MAR stationary alternative. An application to Brent crude oil price illustrates the relevance of the proposed approach.
    Keywords: Mixed autoregression, non-causal autoregression, maximum likelihood estimation, unit root test, Brent crude oil price.
    JEL: C12 C22 Q41
    Date: 2019
  17. By: Ansgar Belke; Timo Baas
    Abstract: For more than two decades now, current-account imbalances are a crucial issue in the international policy debate as they threaten the stability of the world economy. More recently, the government debt crisis of the European Union shows that internal current account imbalances inside a currency union may also add to these risks. Oil price fluctuations and a contracting monetary policy that reacts on oil prices, previously discussed to affect the current account may also be a threat to the currency union by changing internal imbalances. Therefore, in this paper, we analyze the impact of oil price shocks on current account imbalances within a currency union. Differences in institutions, especially labor market institutions and trade result in an asymmetric reaction to an otherwise symmetric shock. In this context, we show that oil price shocks can have a long-lasting impact on internal balances, as the exchange rate adjustment mechanism is not available. The common monetary policy authority, however, can reduce such effects by specifying an optimum monetary policy target. Nevertheless, we also show that there is no single best solution. CPI, core CPI or an asymmetric CPI target all come at a cost either regarding an increase in unemployment or increasing imbalances.
    Keywords: Current account deficit, Oil price shocks, DSGE models, Search and matching labor market, Monetary policy
    JEL: E32 F32 Q43
    Date: 2019–03
  18. By: Spodniak, Petr; Ollikka, Kimmo; Honkapuro, Samuli
    Date: 2019
  19. By: Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: Eine CO2-Steuer einzuführen für nicht vom CO2-Zertifkate-Handel erfasste Sektoren erscheint als ökonomisch-ökologisch vernünftig für Deutschland und andere OECDLänder. Die Steuer sollte weitgehend aufkommensneutral sein, könnte aber mit einem geringen Anteil zeitweise auch eine verstärkte emissionsmindernde Innovationsförderung finanzieren, die wiederum die ökonomischen Lasten von Zertifikatehandel und CO2-Steuer zu mindern hilft. Der Zertifikate-Handel ist grundsätzlich ökonomisch effizient, sofern man langfristig einen global einheitlichen Preis für Zertifikate erreicht – das ist angesichts der Zielmarke für eine weitgehende CO2-Neutralität des Wirtschaftens in der EU bis 2050 eine mittelfristig anzugehende Aufgabe, wobei zudem die CO2-Steuerhöhe nahe beim Zertifikatepreis liegen sollte. Hier gibt es eine wichtige Aufgabe bzw. Option für die deutsche EU-Ratspräsidentschaft in der zweiten Jahreshälfte 2020. Steueraspekte der Innovationsförderung und speziell auch klimafreundlicher Innovationsdynamik sind zu bedenken.
    Keywords: CO2-Steuer, CO2- Zertifikatenhandel, Innovationsförderung, Klimapolitik, EU, G20
    JEL: H2 F13 Q54 Q58 O19 O3
    Date: 2019–06
  20. By: Heiner Mikosch (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Laura Solanko (BOFIT, Bank of Finland, Snellmaninaukio)
    Abstract: GDP forecasters face tough choices over which leading indicators to follow and which forecasting models to use. To help resolve these issues, we examine a range of monthly indicators to forecast quarterly GDP growth in a major emerging economy, Russia. Numerous useful indicators are identified and forecast pooling of three model classes (bridge models, MIDAS models and unrestricted mixed-frequency models) are shown to outperform simple benchmark models. We further separately examine forecast accuracy of each of the three model classes. Our results show that differences in performance of model classes are generally small, but for the period covering the Great Recession unrestricted mixed-frequency models and MIDAS models clearly outperform bridge models. Notably, the sets of top-performing indicators differ for our two subsample observation periods (2008Q1–2011Q4 and 2012Q1–2016Q4). The best indicators in the first period are traditional real-sector variables, while those in the second period consist largely of monetary, banking sector and financial market variables. This finding supports the notion that highly volatile periods of recession and subsequent recovery are driven by forces other than those that prevail in more normal times. The results further suggest that the driving forces of the Russian economy have changed since the global financial crisis.
    Keywords: Keywords: Forecasting, mixed frequency data, Russia, GDP growth
    JEL: C53 E27
    Date: 2018–01
  21. By: Luisa Andreis; Maria Flora; Fulvio Fontini; Tiziano Vargiolu
    Abstract: Reliability Options are capacity remuneration mechanisms aimed at enhancing security of supply in electricity systems. They can be framed as call options on electricity sold by power producers to System Operators. This paper provides a comprehensive mathematical treatment of Reliability Options. Their value is first derived by means of closed-form pricing formulae, which are obtained under several assumptions about the dynamics of electricity prices and strike prices. Then, the value of the Reliability Option is simulated under a real-market calibration, using data of the Italian power market. We finally perform sensitivity analyses to highlight the impact of the level and volatility of both power and strike price, of the mean reversion speeds and of the correlation coefficient on the Reliability Options' value.
    Date: 2019–09
  22. By: Andrei V. Belyi; Peter Havlik (The Vienna Institute for International Economic Studies, wiiw); Artem Kochnev; Ilya B. Voskoboynikov
    Abstract: Chart of the month The Russian economy and oil prices by Peter Havlik Opinion corner Russia’s new social contract in light of the oil taxation reforms by Andrei V. Belyi The fiscal rule and the foreign exchange market in Russia Stepping in the same river twice? by Artem Kochnev Last month the Central Bank of Russia announced its return to the foreign exchange market, according to the fiscal rule implemented in 2017. This note finds that the previous round of the currency interventions by the Bank of Russia was effective in stabilising exchange rate movements by counterbalancing the effects of the oil price changes on the Russian currency. Global slowdown and the Russian economy by Ilya B. Voskoboynikov The article reviews long-run sources of Russian economic growth and demonstrates that the stagnation of the Russian economy in the past decade can be considered in the context of the global productivity slowdown. Conventional industry growth accounting shows that in contrast to the transformational recession before 1998, the recent stagnation of 2008-2014 is primarily the outcome of a slowdown in total factor productivity (TFP) growth and a deterioration in the allocation of labour, rather than bottlenecks in capital inputs. Monthly and quarterly statistics for Central, East and Southeast Europe
    Keywords: oil price, balance of payments, oil taxation, social contract, ‘energy superpower’ concept, fiscal rule, foreign exchange market, growth accounting, total factor productivity, structural change, capital intensity
    Date: 2019–02
  23. By: Dimitris Diakosavvas (OECD); Clara Frezal (OECD)
    Abstract: The bio-economy is gaining increasing prominence in the policy debate, with several countries developing bio-economy strategies to decouple economic growth from dependence on fossil fuel, as well a pathway to supporting some of the UN Sustainable Development Goals (SDGs) and commitments under the Paris Climate Agreement. This report analyses the opportunities and policy challenges facing the bio-economy in transitioning to a more sustainable agro-food system. It provides an overview of national bio-economy- strategies based on a literature review and information provided by governments in response to a questionnaire.
    Keywords: agro-food system, Bio-economy, coherence, innovation, monitoring, policy instruments, sustainability
    JEL: P48 Q2 Q18 Q28 Q52 Q57 Q58
    Date: 2019–09–12
  24. By: Coyne, Brian; Lyons, Seán; McCoy, Daire
    Date: 2019
  25. By: Duncan Chaplin; Delia Welsh; Arif Mamun; Nick Ingwersen; Kristine Bos; Erin Crossett; Poonam Ravindranath; Dara Bernstein; William Derbyshire
    Abstract: This report presents Mathematica’s plans for conducting a decade-long evaluation of the Ghana II Power Compact. The five-year compact is being implemented by the Millennium Challenge Corporation and Ghana’s Millennium Development Authority.
    Keywords: Ghana, evaluation design, power sector reform, concessionaire, political economy analysis, electricity quality and reliability, impact on electricity end-user outcomes
  26. By: Mahdavi, Sadegh; Bayat, Alireza; Mirzaei, Farzad
    Abstract: In this paper, a new optimization algorithm known as the Multiverse Optimization Algorithm (MOA) is developed for optimal economic operation of the micrigrid (MG) in the grid-connected mode. Results show the merit of the proposed technique.
    Keywords: Economic dispatch, Power Market, Power Economic, Energy Management
    JEL: A1 C0 G0 H0 L0 P0
    Date: 2019
  27. By: Chen, Tengjiao
    Keywords: Resource/ Energy Economics and Policy
    Date: 2019–06–25
  28. By: Mukherjee, Sacchidananda (National Institute of Public Finance and Policy)
    Abstract: Revenue from taxes on petroleum products, crude petroleum and natural gas constitutes significant share in major indirect tax collection of the Union as well as State governments. The revenue share of petroleum taxes for the Union government has gone up whereas for the state governments it has gone down since 2010-11. Understanding revenue stream from petroleum taxes could help governments in better public finance management. The importance of revenue from petroleum sector has increased after the introduction of Goods and Services Tax (GST) in India, as fiscal autonomy of the governments (both federal as well as provincial) to augment tax collection through unilateral policy changes has been curtailed with harmonisation of the tax system. Revenue mobilisation from petroleum taxes is dependent on consumption (sales) of petroleum products and therefore understanding consumption of petroleum products is important to improve our understanding on revenue potential from petroleum sector. The objective of this paper is to estimate the petroleum consumption function (or demand function) and revenue (tax collection) function of petroleum sector for the period 2001-02 to 2016-17. Based on the estimated demand and revenue functions, we project the petroleum demand and tax collection from petroleum taxes for the period 2017-18 to 2024-25.
    Keywords: petroleum products consumption ; demand estimations ; projections ; petroleum taxes ; revenue mobilisation ; econometric models; India
    Date: 2019–09
  29. By: Guo, Wei
    Keywords: Resource/ Energy Economics and Policy
    Date: 2019–06–25
  30. By: Carattini, Stefano; Levin, Simon; Tavoni, Alessandro
    Abstract: Climate change is a global externality that has proven difficult to address through formal institutions alone, due to the public good properties of climate change mitigation and the lack of a supranational institution for enforcing global treaties. Given these circumstances, which are arguably the most challenging for international cooperation, commitment problems and free-riding incentives for countries to delay costly mitigation efforts are major obstacles to effective environmental agreements. Starting from this premise, we examine domestic mitigation efforts, with the goal of assessing the extent to which the willingness of individuals to contribute voluntarily to the public good of climate mitigation could be scaled up to the global level. Although individual environmental actions are clearly insufficient for achieving ambitious global mitigation targets, we argue that they are nevertheless initial and essential steps in the right direction. In fact, individual and community efforts may be particularly important if local interventions encourage shifts in norms and behaviors that favor large-scale transformations. With this in mind, we discuss the importance of the visibility of norms and the role of beliefs when such visibility is lacking, and their implications for leveraging cooperative behavior to increase climate mitigation efforts locally and globally.
    Keywords: social norms; collective action; pro-environmental behaviour; climate policy; conditional cooperation; ES/R009708/1
    JEL: D70 F59 H23 M30 Q54 Q58
    Date: 2019–07–10
  31. By: John K. Stranlund (University of Massachusetts Amherst); James J. Murphy (Department of Economics, University of Alaska Anchorage); John M. Spraggon (University of Massachusetts Amherst); Nikolaos Zirogiannis (Indiana University Bloomington)
    Abstract: We present results from laboratory emissions permit markets designed to investigate the transmission of abatement cost risk to firms’ compliance behavior and regulatory enforcement strategies. With a fixed expected marginal penalty, abatement cost shocks produced significant violations and emissions volatility as predicted. Tying the monitoring probability to average permit prices effectively eliminated noncompliance, but transmitted abatement cost risk to monitoring effort. Tying the penalty to average prices reduced violations, but did not eliminate them. Some individuals in these treatments sold permits at low prices, presumably in an attempt to weaken enforcement. While tying sanctions directly to prevailing permit prices has theoretical and practical advantages over tying monitoring to prices, our results suggest that this strategy may not be as effective as predicted without additional modifications.
    Keywords: experimental economics, Emissions markets, risk and uncertainty, incomplete information, permit markets, compliance, enforcement, laboratory experiments.
    JEL: C92 L51 Q58 D62 H23
    Date: 2018
  32. By: Hardman, Scott; Jang, Nora; Garas, Dahlia
    Keywords: Social and Behavioral Sciences
    Date: 2019–09–01
  33. By: Matteo Bonato (Department of Economics and Econometrics, University of Johannesburg, Auckland Park, South Africa; IPAG Business School, 184 Boulevard Saint-Germain, 75006 Paris, France); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa; IPAG Business School, 184 Boulevard Saint-Germain, 75006 Paris, France); Chi Keung Marco Lau (Huddersfield Business School, University of Huddersfield, Huddersfield, HD1 3DH, United Kingdom); Shixuan Wang (Department of Economics, University of Reading, Reading, RG6 6AA, United Kingdom)
    Abstract: In this paper, we use intraday futures market data on gold and oil to compute returns, realized volatility, volatility jumps, realized skewness and realized kurtosis. Using these daily metrics associated with two markets over the period of December 2, 1997 to May 26, 2017, we conduct linear, nonparametric, and time-varying (rolling) tests of causality, with the latter two approaches motivated due to the existence of nonlinearity and structural breaks. While, there is hardly any evidence of spillovers between the returns of these two markets, strong evidence of bidirectional causality is detected for realized volatility, which seems to be resulting from volatility jumps. Evidence of spillovers are also detected for the crash risk variables, i.e., realized skewness, and for realized kurtosis as well, with the effect on the latter being relatively stronger. Moreover, based on a moments-based test of causality, evidence of co-volatility is deduced, whereby we find that extreme positive and negative returns of gold and oil tend to drive the volatilities in these markets. Our results have important implications for not only investors, but also policymakers.
    Keywords: Gold and Oil Markets, Linear, Nonparametric and Time-Varying Causality Tests, Moments-Based Spillovers
    JEL: C32 Q02
    Date: 2019–08
  34. By: De Bruin, Kelly C; Yakut, Aykut Mert
    Date: 2019
  35. By: Fabio Antonialli (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Bruna Habib Cavazza (UFLA - Universidade Federal de Lavras); Rodrigo Gandia (UFLA - Universidade Federal de Lavras, LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Joel Sugano (UFLA - Universidade Federal de Lavras); André Zambalde (UFLA - Universidade Federal de Lavras); Isabelle Nicolaï (LGI - Laboratoire Génie Industriel - EA 2606 - CentraleSupélec); Arthur de Miranda Neto
    Date: 2018–06–11
  36. By: Bayat, Alireza; Mahdavi, Sadegh; Mirzaei, Farzad
    Abstract: In this paper, a new evolutionary algorithm, known as the multiverse evolutionary algorithm (MEA) is developed for self-supplied microgrid operation. To show the effectiveness of the proposed method, it has been tested on the modified IEEE 33 bus test system. Results demonstrates the economic merit of the proposed technique.
    Keywords: Power system operation, Economic Operation, Microgrid, Optimal Energy Management
    JEL: A1 C0 C00 L0
    Date: 2019
  37. By: Signe Krogstrup; William Oman
    Abstract: Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition. The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework.
    Keywords: Financial regulation and supervision;Financial crises;Central banking and monetary issues;Economic conditions;Financial management;climate change,fiscal policy,monetary policy,financial policy,policy framework,policy coordination,WP,low-carbon,climate change mitigation,policy tool,climate-related,mitigation
    Date: 2019–09–04
  38. By: Nicolas Piluso (CERTOP - Centre d'Etude et de Recherche Travail Organisation Pouvoir - CNRS - Centre National de la Recherche Scientifique - UPS - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées - UT2J - Université Toulouse - Jean Jaurès - INUC - Institut national universitaire Champollion [Albi] - Université Fédérale Toulouse Midi-Pyrénées); Clement Rau (LATP - Laboratoire d'Analyse, Topologie, Probabilités - Université Paul Cézanne - Aix-Marseille 3 - Université de Provence - Aix-Marseille 1 - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper develops a Keynesian model of growth under perfect competition in which we introduce ecological taxation. We show that it is possible to highlight a triple dividend of ecological taxation. This triple dividend is characterized by an ecological effect and two possible economic effects: a possible positive effect on employment, and an effect of reducing the instability of the economy. We therefore extend the issue of the double dividend by highlighting the implication of ecological taxation that has been little studied in the literature.
    Abstract: Cet article développe un modèle keynésien de croissance en situation de concurrence parfaite dans lequel nous introduisons une taxation écologique. Nous montrons qu'il est possible de mettre en évidence un triple dividende de la taxation écologique. Ce triple dividende se caractérise par un effet écologique et deux possibles effets économiques : un éventuel effet positif sur l'emploi, et un effet de réduction de l'instabilité de l'économie. Nous élargissons donc la problématique du double dividende à travers la mise en lumière d'une implication de la taxation écologique peu étudiée dans la littérature. Mots Clés : double-dividende, taxe carbone, croissance, instabilité, concurrence parfaite.
    Keywords: double-dividend,carbon tax,growth,instability,perfect competition
    Date: 2019–06
  39. By: Stefan Bouzarovski; Aneta Kie³czewska; Piotr Lewandowski; Jakub Soko³owski
    Abstract: Energy poverty is a complex problem that is generally caused by having a low income, having high energy costs, and/or living in a home with low energy efficiency. Various indicators capture these factors, but there is no consensus among researchers on which is the best one, or on how to combine them. Thus, poverty mapping and policy planning would benefit from having access to a unitary index of poverty. We have created a multidimensional energy poverty index using the methodology proposed by Alkire and Foster (2008). The index accounts for five dimensions of energy deprivation: two objective indicators of “low income, high costs” and “high share of energy expenditure in income”, as well as three subjective indicators of “inability to keep the home adequately warm”, “presence of leaks, damp, or rot” and “difficulties paying utility bills”. We define households as poor if at least two forms of deprivation are present. We apply our index to Poland using Household Budget Survey data. We find that in 2017, 10% of households in Poland suffered from multidimensional energy poverty, and that about half of these households were also income-poor. Households living in buildings built before 1946, households living in rural areas, and households that were dependent on retirement and disability pensions or on unearned sources of income were at especially high risk of energy poverty.
    Keywords: energy poverty, multidimensional poverty index, Alkire-Foster method
    JEL: I32 Q40 R29
    Date: 2019–08
  40. By: Suh, Dong Hee
    Keywords: International Relations/Trade
    Date: 2019–06–25
  41. By: Christopher Lim (Lucas College and Graduate School of Business)
    Abstract: In recent years, the discussion on corporate social responsibility has surged and firm management are seen to devote more efforts and resources towards improving their social image. Even under such intense public scrutiny, product recalls in the electronics, automotive, and healthcare sectors have not declined. Quality issues persist due to the severe competitive pressure to meet time to market’ product launches. Carbon emissions and green-house gases generated by industrial manufacturing, waste disposal, and automotive vehicles also continue to rise. The research purpose was to investigate the impact of individual social variables on financial performance. This research paper used multiple linear regression to assess the relationship between key indicators of corporate social responsibility and financial performance from 372 corporations in 2014. The theoretical foundation was Freeman’s stakeholder theory. Environment, community, human rights, diversity, employee relations, product quality, and corporate governance were measures of social performance. Return on assets was used to measure financial performance. When independent social variables were evaluated with corporate financial performance, employee relations and product quality in the healthcare sector, and community in the financial sector, were found to be positively significant. Environment, product quality, and corporate governance in the financial sector, and employee relations in the consumer and energy sectors, were found to be negatively significant. This research revealed that the relationship between some social variables and financial performance are significant, but not always in a positive direction. Based upon the findings established in this paper, managers can use the findings to evaluate their firm’s social position, develop strategies to address gaps, and undertake actions to enhance their firm’s social performance, thereby creating positive social change in the community.
    Keywords: social variables, corporate social responsibility, financial performance, stakeholder theory
    Date: 2019–04
  42. By: Harold, Jason; Cullinan, John; Lyons, Seán
    Date: 2019
  43. By: Joan Batalla Bejerano; Elisenda Jové-Llopis
    Abstract: Con el objetivo de dar respuesta a los retos que conlleva el cambio climático, está teniendo lugar un profundo proceso de transformación del sistema energético, con especial afección en el sector eléctrico. En este proceso de cambio, se está produciendo un intenso debate alrededor del papel de los mercados eléctricos y su capacidad, en su diseño actual, de dar respuesta a los retos del sector en su conjunto aportando las correctas y oportunas señales a la inversión. En el presente trabajo se presentan los principales retos del sector y su incidencia en el correcto funcionamiento de los mercados eléctricos, analizándose el papel a desempeñar por los mercados y los diferentes mecanismos de retribución a la producción de energía eléctrica.
    Date: 2019–09
  44. By: Katharina Momsen; Markus Ohndorf
    Abstract: We investigate if people exploit moral wiggle room in green markets when revelation is stochastic and the revealed information is potentially erroneous. In our laboratory experiment, subjects purchase products associated with co-benefits represented as a contribution to carbon o?sets purchased by the experimenters. Information on the size of this contribution is unobservable at first, but can be actively revealed by the consumer. In seven treatments, we alter the information structure as well as the perceived revelation costs. We find strong evidence of self-serving information avoidance in treatments with simple stochastic revelation and reduced reliability of the information, representing potentially 'fake' news. The propensity to avoid information increases with the introduction of nominal information costs, which are in fact not payo?-relevant. We conclude that, generally, self-serving information avoidance can arise in green market situations if specific situational excuses are present, which could explain the demand for products associated with 'greenwashing'.
    Keywords: Information avoidance, experiment, carbon o?sets, moral wiggle room, green consumption, fake news
    JEL: C91 D91 G11 J24
    Date: 2019
  45. By: Zhu, Tong; Curtis, John; Curtis, Matthew
    Date: 2019

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