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on Energy Economics |
| By: | Daron Acemoglu (Massachusetts Institute of Technology); David Hemous (University of Zurich); Lint Barrage (Brown University); Philippe Aghion (LSE) |
| Abstract: | The shale gas revolution can potentially reduce CO2 emissions in the short-run in countries which depend heavily on coal. Yet, it may also discourage innovation in green technologies, leading to lower emissions in the long-run. We document that the shale gas revolution was accompanied by a collapse in innovation in green electricity. We build a model of directed technical change where energy is produced using coal, and/or natural gas, and/or a green source of energy. We derive conditions under which, as a result of the above trade-off, the shale gas revolution reduces emissions in the short-run but increases emissions in the long-run. We then use data on electricity production to calibrate the model. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1302&r=all |
| By: | Gregory Casey (Williams College) |
| Abstract: | I build a quantitative model of economic growth that can be used to evaluate the impact of environmental policy interventions on final-use energy consumption, an important driver of carbon emissions. In the model, energy demand is driven by endogenous and directed technical change (DTC). Energy supply is subject to increasing extraction costs. Unlike existing DTC models, I consider the case where multiple technological characteristics are embodied in each capital good, a formulation conducive to studying final-use energy. The model is consistent with aggregate evidence on energy use, efficiency, and prices in the United States. I examine the impact of new energy taxes and compare the results to the standard Cobb-Douglas approach used in the environmental macroeconomics literature, which is not consistent with data. When examining a realistic and identical path of energy taxes in both models, the DTC model predicts 22% greater cumulative energy use over the next century. I also use the model to study the macroeconomic consequences of R & D subsidies for new energy efficient technologies. I find large rebound effects that undo short-term reductions in energy use. |
| Keywords: | Energy, Climate Change, Directed Technical Change, Growth |
| JEL: | H23 O33 O44 Q43 Q55 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:wil:wileco:2019-17&r=all |
| By: | Anthony Wiskich |
| Abstract: | A review of the literature indicates a decreasing long-run elasticity of substitution between clean and dirty inputs as the share of clean inputs rises. In the power sector, which is the largest contributor to greenhouse gas emissions, integrating intermittent clean energy supply becomes increasingly difficult as the clean share rises. This paper describes a simple structural model of electricity generation which: demonstrates how the elasticity falls as the clean share rises; can replicate the range of results from the electricity literature; considers the effects of storage, and; facilitates estimation of a suitable production function. A bimodal production function with two elasticity regimes - an elasticity above 8 up to a 50 to 70 per cent clean share and an elasticity below 3 beyond this share – can replicate results well from the structural model. |
| Keywords: | Elasticity of substitution, climate change, energy, electricity, production function |
| JEL: | O33 O44 Q30 Q54 Q56 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2019-72&r=all |
| By: | Myers Jaffe, Amy |
| Abstract: | The recent emergence of natural gas as an abundant, inexpensive fuel in the United States could prompt a momentous shift in the level of natural gas utilized in the transportation sector. The cost advantage of natural gas vis-à-vis diesel fuel is particularly appealing for vehicles with a high intensity of travel and thus fuel use. Natural gas is already a popular fuel for municipal and fleet vehicles such as transit buses and taxis. In this paper, we investigate the possibility that natural gas could be utilized to provide fuel cost savings, geographic supply diversity and environmental benefits for the heavy-duty trucking sector and whether it can enable a transition to lower carbon transport fuels. We find that a small, cost-effective intervention in markets could support a transition to a commercially sustainable natural gas heavyduty fueling system in the state of California and that this could also advance some of the state’s air quality goals. Our research shows that an initial advanced natural gas fueling system in California could facilitate the expansion to other U.S. states. Such a network would enable a faster transition to renewable natural gas or biogas and waste-to-energy pathways. Stricter efficiency standards for natural gas Class 8 trucks and regulation of methane leakage along the natural gas supply chain would be necessary for natural gas to contribute substantially to California’s climate goals as a trucking fuel. To date, industry has favored less expensive technologies that do not offer the highest level of environmental performance. |
| Keywords: | Engineering |
| Date: | 2019–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt23g1443q&r=all |
| By: | Anthony Wiskich |
| Abstract: | This paper extends the climate model with endogenous technology of Acemoglu, Aghion, Bursztyn, and Hemous (2012). A non-energy sector is introduced which decreases the costs of abatement by more than an order of magnitude through the extensive margin of labour, as labour can move freely between sectors. An extensive margin of research, where researchers can switch between non-energy and energy research, leads to a period of intense research in the clean sector above the long-run share and increases the power of policy to avert environmental disaster. A decreasing elasticity of substitution between clean and dirty inputs as the share of clean energy rises is also considered, reflecting the increasing difficulty of integrating intermittent clean energy supply in electricity. A decreasing elasticity increases the initial optimal tax on dirty energy and therefore lowers the subsidies required to direct technical change towards clean energy. |
| Keywords: | Climate change, directed technical change, optimal policy, energy |
| JEL: | O33 O44 Q30 Q54 Q56 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2019-70&r=all |
| By: | Maria Belfiori (Universidad Catolica Argentina); Armon Rezai (WU Vienna University of Economics and Bu) |
| Abstract: | This paper studies the optimal climate policy in an economy that faces constraints on the availability of policy instruments. In a standard macro-climate growth model that includes a carbon emissions externality, the optimal policy is the introduction of a global carbon tax. After years of climate negotiations and no success in the introduction of a carbon price, this paper suggests an alternative approach which is to look for the best policies that the global economy can seek constrained by the fact that a global carbon tax is not an available tool. We show that standard fiscal instruments – not often included in the climate negotiations - are capable of achieving the optimal outcome. We theoretically characterize and quantitatively estimate the optimal tax rates, and we find that they are well within existing tax rates. These results suggest that there is value in broadening the discussion on climate policies by exploring the role that standard taxes, such as income and consumption taxes, can play in tackling the climate problem. Politicians might be keener on recalibrating the tax rate on existing taxes than on introducing new taxes. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1029&r=all |
| By: | Klaus Gugler (Research Institute for Regulatory Economics, Vienna University of Economics and Business); Adhurim Haxhimusa (Institute for Quantitative Economics, Research Institute for Regulatory Economics, Vienna University of Economics and Business); Mario Liebensteiner (Institute for Resource and Energy Economics, TU Kaiserslautern) |
| Abstract: | We compare the effectiveness of different climate policies in terms of emissions abatement and costs in the British and German electricity markets. The two countries follow different climate policies, allowing us to compare the effectiveness of a relatively low EU ETS carbon price in Germany with a significantly higher carbon price due to a unilateral top-up tax (the Carbon Price Support) in the UK. We first estimate the emissions offsetting effects of carbon pricing and of subsidized wind and solar feed-in, and then derive the abatement costs of one tonne of CO2 for the different policies. We find that a reasonably high price for emissions is the most cost-effective climate policy, while subsidizing wind is preferable to subsidizing solar power. A carbon price of around EURO 35 is enough in the UK to induce vast short-run fuel switching between coal- and gas-fired power plants, leading to significant emissions abatement at low costs. |
| Keywords: | Climate change policy, Carbon price, EU ETS, UK Carbon Price Floor, UK Carbon Price Support, Subsidization of renewables |
| JEL: | L94 L98 Q38 Q54 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp293&r=all |
| By: | Winters, John V.; Cai, Zhengyu; Maguire, Karen; Sengupta, Shruti |
| Abstract: | Fracking innovations revolutionized the United States oil and gas industry and facilitated a boom in energy production in states with oil and gas resources. This paper examines effects of oil and gas booms within a state on individual employment and earnings. To account for endogenous migration decisions, we instrument for oil and gas production in workers’ state of residence via the predicted percent of oil and gas employment in their state of birth. We find statistically significant and economically meaningful positive effects. The bulk of the effects accrue to workers employed outside the oil and gas industry indicating sizable spillovers. |
| Keywords: | Resource boom,Regional economic development,Employment,Wages,Income |
| JEL: | J20 J30 Q40 R10 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:400&r=all |
| By: | Assis de Salles, Andre; Mendes Campanati, Ana Beatriz |
| Abstract: | The natural gas price is an important and often decisive variable for economic policy makers. Many studies have been developed in order to establish a stochastic process that can represent the movements or the returns of natural gas prices or variations of such prices time series to forecast price expectations. This work aims to study the relationship between natural gas and crude oil prices in the international market, proposing to investigate its nature and long term equilibrium, through the development of adequate econometric models for determining future expectations of major natural gas price benchmarks, or of their returns. In order to accomplish this, time series for both benchmark crude oil and natural gas prices are subjected to statistical tests with the purpose of verifying the underlying hypotheses behind the appropriate autoregressive dynamic models. The conditional heteroskedasticity and non-normality of the return series, which are prevalent characteristics in energy markets, are considered when elaborating these models. To reach the purpose of this work weekly natural gas and crude oil prices benchmarks traded in the international market were collected. |
| Keywords: | Natural Gas Prices, Crude Oil Prices, Cointegration, Causality, Autoregressive Distributed Lag Model |
| JEL: | C22 C51 G15 Q40 |
| Date: | 2019–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95982&r=all |
| By: | Heindl, Peter; Schüßler, Rudolf |
| Abstract: | In this paper, subjective and objective aspects of deprivation are used to derive an aggregated multidimensional measure of energy poverty. The proposed measure is based on deprivation with a direct relation to energy consumption, but it also accounts for excessive financial restrictions due to energy costs, it gives priority to low income households, and controls for economic energy use. Based on logistic regression, we find strong effects of income and energy expenditure on the likelihood of energy deprivation in Germany, but these variables only partially constitute energy poverty. Other aspects, e.g. employment status or housing conditions, play an important role as well. |
| Keywords: | energy deprivation,energy poverty,fuel poverty |
| JEL: | I32 D63 Q48 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:19036&r=all |
| By: | Elena Ionascu; Marilena Mironiuc; ; Maria Carmen Huian |
| Abstract: | The stability of the housing market is crucial for sustainable development, and the monitoring and assessing housing price dynamics has become a standard practice in macro-financial supervision. In accordance with the EU approach to sustainable development, the paper aims to explore the relationship between housing prices as an informative indicator of the market and sustainability dimensions in the EU countries. Through an econometrical approach, the social and environmental implications on the housing market are investigated in relation to economic development as the most important factor for supporting sustainable practices. Variables that describe housing conditions, living environments and housing affordability are used as social measures, and energy consumption, renewable energy consumption and gas emissions as indicators of the environment. The low perception of the households about the sustainable effects on the housing prices is outlined. Housing fundamentals, such as disposable income, credit conditions and housing supply (construction costs and building permits) remain the most important factors that determine the household decisions. Based on the research result, policy implications are formulated in relation to the current conditions for sustainable development. |
| Keywords: | Environment; Housing Prices; policy implications; Social; sustainability |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_345&r=all |
| By: | De Haas, Ralph; Popov, Alexander |
| Abstract: | We study the relation between the structure of financial systems and carbon emissions in a large panel of countries and industries over the period 1990-2013. We find that for given levels of economic and financial development and environmental regulation, CO2 emissions per capita are lower in economies that are relatively more equity-funded. Industry-level analysis reveals two distinct channels. First, stock markets reallocate investment towards less polluting sectors. Second, they also push carbon-intensive sectors to develop and implement greener technologies. In line with this second effect, we show that carbon-intensive sectors produce more green patents as stock markets deepen. We also document an increase in carbon emissions associated with the production of imported goods equal to around one-tenth of the reduction in domestic carbon emissions. JEL Classification: G10, O4, Q5 |
| Keywords: | carbon emissions, financial development, financial structure, innovation |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20192318&r=all |
| By: | Sven Bienert; Maximilian Spanner; Jens Hirsch |
| Abstract: | Existing research on the impacts of climate change has put no sufficient focus on the aspect that climate change might endanger the business of real estate companies due to poor carbon performance. The downside effects of climate change focused predominantly on natural risks and extreme weather events but gained more and more attention in recent years. This paper aims at the opportunities to optimise industry’s investments in energy efficient retrofits by making risks more transparent and by unveiling opportunities for property owners and investors. A continuous monitoring of the carbon emissions could accelerate decarbonisation and climate change resilience of the EU commercial real estate sector by clearly communicating the downside financial risks associated with poor carbon performance and quantifying the financial implications of climate change on the building stock. The industry has to be provided with country and sector-specific science-based carbon reduction pathways at building, portfolio and company level in tandem with financial risk assessment tools to cost-effectively manage carbon mitigation strategies. |
| Keywords: | carbon emission; decarbonisation; mitigation strategies; science-based targets; stranding risk |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_207&r=all |
| By: | Sylvain Benoit (LEDa - Laboratoire d'Economie de Dauphine - Université Paris-Dauphine); Yannick Lucotte (LEO - Laboratoire d'Économie d'Orleans - CNRS - Centre National de la Recherche Scientifique - Université de Tours - UO - Université d'Orléans); Sébastien Ringuedé (LEO - Laboratoire d'Economie d'Orléans - Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Using daily price quotes from about 8,000 French gas stations, this paper empirically analyses whether the level of competition determines the degree of price stickiness on the retail gasoline market. The degree of price rigidity is measured by the frequency of price changes, while the distance to the nearest station and the number of gas stations within a given radius are considered as proxies for local competition. The results confirm that local competition is an important determinant of the price-setting behavior of gas stations. Indeed, considering Ordinary Least Squares (OLS) and spatial regression models, we find that the degree of price rigidity is positively related to the distance to the nearest station, and negatively related to the concentration of firms in a given geographical area. This result can be notably explained by the fact that gas stations facing a high competitive pressure are more likely to adjust their prices more quickly and more frequently in response to crude oil price decreases than stations enjoying market power. |
| Keywords: | Retail gasoline pricing,Price-setting behavior,Price stickiness,Localcompetition |
| Date: | 2019–09–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02292332&r=all |
| By: | Gerard van der Meijden (Vrije Universiteit Amsterdam); Cees Withagen (IPAG Business School) |
| Abstract: | The effects of climate policies are often studied under perfect competition and constant marginal extraction costs. In this paper, we allow for monopolistic fossil fuel supply and more general cost functions, which, in the presence of perfectly substitutable renewables, gives rise to limit-pricing behavior. Four phases of supply may exist in equilibrium: sole supply of fossil fuels below the limit price, sole supply of fossil fuels at the limit price, simultaneous supply of fossil fuels and renewables at the limit price, and sole supply of renewables at the limit price. The consequences of climate policies for initial extraction depend on the initial phase: in case of sole supply of fossil fuels at the limit price, a renewables subsidy increases initial extraction, whereas a carbon tax leaves initial extraction unaffected. With simultaneous supply at the limit price or with sole supply of fossil fuels below the limit price, a renewables subsidy and a carbon tax lower initial extraction. Both policy instruments decrease cumulative extraction. If fossil fuels and renewables are imperfect but good substitutes, the monopolist will exhibit ‘limit-pricing resembling’ behavior, by keeping the effective price of fossil close to that of renewables for considerable time. |
| Keywords: | limit pricing, non-renewable resource, monopoly, climate policies |
| JEL: | Q31 Q42 Q54 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.18&r=all |
| By: | Neetzow, Paul |
| Abstract: | For decarbonization purposes, variable renewable energies (VRE) are widely and quickly deployed in historically fossil-dominated power systems. Yet, some fossil technologies are more suitable than others for integration with VRE due to their higher flexibility. I utilize an analytically tractable model to study the optimal transition to a VRE-dominated sys-tem when the endowment of flexible and inflexible conventional generators is rigid. I find that the existence of inflexible fossil generators hampers early deployment of VRE. How-ever, deployment speed increases after VRE begin to substitute generation from inflexible generators, which happens after VRE and inflexible capacities strictly exceed demand together. At this time, the decreasing use of inflexible fossil generation is usually ac-companied by an increasing utilization of flexible generators. Nevertheless, constructing additional flexible capacities is only profitable under restrictive conditions. By contributing to a better understanding of the impact of flexibility on efficient VRE deployment, this work may facilitate an efficient transition process. |
| Keywords: | Agricultural and Food Policy, Food Security and Poverty, Resource /Energy Economics and Policy |
| Date: | 2019–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huiawp:292978&r=all |
| By: | Hardman, Scott |
| Abstract: | In this study, the author presents results from a survey of 906 FCV and 12,910 BEV households in California. They investigated the sociodemographic profile of FCV buyers and compare them to BEV households. FCV and BEV households are similar in many areas. There is no significant difference in household income, number of people in the household, number of vehicles in the household, gender, or level of education. However, FCV and BEV households do differ in some key areas. Compared to BEV households, FCV households are slightly older; less own their own home; more live in an apartment, condo, or townhouse; they have owned more alternative fuel vehicles previously (but fewer BEVs); they have higher VMT; and slightly longer commutes. These differences may explain why these households choose to adopt a FCV. As fewer FCV households own their home, and more live in multi-unit dwellings they may have more barriers to accessing recharging from home, which may be why they selected a FCV rather than a BEV. Their slightly longer commutes and higher VMT may mean they perceive FCVs to be a better fit with their household’s travel patterns, though their commutes are well within the range of a BEV. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Fuel cell vehicle, battery electric vehicle, electric vehicle |
| Date: | 2019–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt866706mr&r=all |
| By: | Márquez-Velázquez, Alejandro |
| Abstract: | The resource curse literature's main lesson is that developing and natural resource-rich countries should save most of their oil windfalls in foreign currency. Moreover, the political cycle literature's recent contributions predict stronger cycles in these countries. This paper investigates how political cycles might explain low oil windfall savings. Using Venezuela's case, the paper argues that power concentration during periods of oil price explosiveness leads to increased public investment in prestige projects aimed at increasing the incumbent's − or his party's − re-election probabilities. The article backs the argument analyzing the Chavista democratic period of 1999-2016. It also identifies parallels with Venezuela's 1970-1988 period. |
| Keywords: | oil windfalls,political cycles,resource curse,Venezuela |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:201914&r=all |
| By: | Baran Doda (LSE); Simon Quemin (LSE); Luca Taschini (LSE) |
| Abstract: | We formally study the determinants, magnitude and distribution of efficiency gains generated in multilateral linkages between permit markets. We provide two novel decomposition results for these gains, characterize individual preferences over linking groups and show that our results are largely unaltered with strategic domestic emissions cap selection or when banking and borrowing are allowed. Using the Paris Agreement pledges and power sector emissions data of five countries which all use or considered using both emissions trading and linking, we quantify the efficiency gains. We find that the computed gains can be sizable and are split roughly equally between effort and risk sharing. |
| Keywords: | Climate change policy, International emissions trading systems, Multilateral linking, Effort sharing, Risk sharing |
| JEL: | Q58 H23 F15 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2019.17&r=all |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_7826&r=all |
| By: | Haqiqi, Iman; Yasharel, Sepideh |
| Abstract: | Phasing out energy subsidies may increase the price of energy and adversely affect the poor. However, the households may benefit from the redistribution of the revenue from this policy in the economy. Here, we investigate the impacts of phasing out energy subsidies and direct transfer of the policy revenue to households. Employing a Computable General Equilibrium model, we measure the impacts on labor-leisure choice and on labor supply. Considering the Foster-Greer-Thorbecke index and the Food Ratio Method, we construct several poverty indices: the Gini index, the ratio of none-food expenditures to food expenditure, the ratio of income of the richest decile to the poorest decile, and the ratio of income of the two richest deciles to the two poorest deciles. We analyze the effects of an increase in energy prices and direct transfer of revenues to the households in the Iranian economy. The findings suggest a considerable improvement in income distribution and a significant improvement in food to non-food ratio. The results also show an improvement in rural-urban income distribution. |
| Keywords: | food security; income distribution; poverty; computable general equilibrium |
| JEL: | C68 D31 D58 D63 Q25 Q43 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95907&r=all |
| By: | Frans Schilder |
| Abstract: | The Netherlands, like countries throughout Europe, face enormous challenges realizing the goals set in the 2015 Paris agreement. Real estate, and more specifically residential real estate, bears the potential to contribute significantly to realizing climate goals. Towards meeting the Paris agreement goals the Dutch housing market will need to become energy neutral in 2050. Progress in making housing more energy efficient has been slow so far. Possibly as a result of the slow pace of investments in energy efficiency anticipated price decreases following the industrialization of energy solutions are yet to be realized. Housing associations have recently proposed to become the frontrunner in the energy transition on the housing market: economies of scale, a limited number of agents owning roughly 30% of the total housing stock, and fairly deep pockets make good arguments for this ambition. However, this ambition comes at a cost as well: how feasible is kickstarting the energy transition within the sector in charge of housing the lowest income households? What are the necessary conditions to make this kickstart work? And what are broader welfare implications, in terms of (reduced investment potential in) local living conditions, and affordability? Some preliminary findings of a mixed-methods study. |
| Keywords: | Energy transition; Housing Associations; Mixed-methods; Social Housing |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_313&r=all |
| By: | Huntington, Hillard; Barrios, James; Arora, Vipin |
| Abstract: | This study conducts a selective review of various estimates for energy demand responses. It emphasizes recent empirical studies that include trends from studies published after 2000. Emphasis is placed on the five major emerging or transitional economies in Brazil, China, India, Mexico and Russia, although other important nations like Chile and South Korea are also discussed when studies are available. The review focuses attention on the long-run responses to changes in prices and income after capital stock turnover has been completed. The terminology often refers to elasticities, or the percentage change in energy use divided by the percentage change in price (or income), holding constant all other factors that could influence energy-use decisions. Most studies have focused upon household and transportation use of liquid fuels; many fewer studies have investigated fuels used by industry or commerce or for electric generation. Based upon the available estimates, price and income elasticities for liquid fuels are generally less than one (unity) for many countries and sectors, except for the long-run income effect for transportation purposes, which can range widely by country between 0.24 and 1.75 while averaging 0.94 for all countries. |
| Keywords: | energy demand; industrializing countries; price elasticity; income elasticity |
| JEL: | O13 Q41 |
| Date: | 2017–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95890&r=all |
| By: | Rickels, Wilfried; Peterson, Sonja; Felbermayr, Gabriel |
| Abstract: | Bei den deutschen Treibhausgasemissionen außerhalb des Europäischen Emissionshandelssystems (EU ETS) verlaufen Reduktionen schleppend, obwohl eine Vielzahl von Instrumenten und erhebliche finanzielle Mittel zur Anwendung kommen. Die Autoren empfehlen daher dem deutschen Klimakabinett, Maßnahmen zu beschließen, die den CO2-Preis über möglichst viele verschiedene Sektoren angleichen, und gleichzeitig die Voraussetzungen für ein umfassendes und damit effizientes EU-Emissionshandelssystem zu schaffen. Auf dem Weg dorthin sprechen sich die Autoren für ein duales Preissystem aus, indem ein nationales Emissionshandelssystem in den bisher noch nicht vom europäischen Emissionshandel erfassten Sektoren eingeführt wird, das nach festem Zeitplan mit dem bereits bestehenden Europäischen Emissionshandelssystem integriert wird. Dieser Schritt sollte mit einer Abkehr von dirigistischen Eingriffen, der Einführung von Mechanismen zur Gewährleistung von Preisuntergrenzen sowie der Umverteilung der Einnahmen begleitet werden. Um die Verlagerung von Emissionen zu verhindern, muss zusätzlich ein Grenzausgleich eingeführt werden, so dass gleichzeitig Anreize für internationale Anstrengungen gesetzt werden, CO2-Preissysteme einzuführen. |
| Keywords: | Pariser Klimaziele,Emissionshandel,Wettbewerbsfähigkeit,Technologieförderung,Paris Climate Agreement,emissions trading,international competitiveness,technology development and promotion |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkpb:127&r=all |
| By: | Samuel Egbetokun (Covenant University, Ota, Ogun State, Nigeria); Evans S. Osabuohien (Covenant University, Ota, Ogun State, Nigeria); Temidayo Akinbobola (Obafemi Awolowo University, Ile-Ife, Nigeria); Olaronke Onanuga (Covenant University, Ota, Ogun State, Nigeria); Obindah Gershon (Covenant University, Ota, Ogun State, Nigeria); Victoria Okafor (Covenant University, Ota, Ogun State, Nigeria) |
| Abstract: | The interaction between environmental pollution and economic growth determines the achievement of the green growth objective of developing economies. An economy turns around the inverted U-shaped Environmental Kuznets Curve (EKC) when pollution is effectively dampened by social, political and economic factors as such economy grows. Thus, this study examines the EKC considering the impact of institutional quality on six variables of environmental pollution [carbon dioxide (CO2), Nitrous Oxide (N2O), Suspended Particulate Maters (SPM), Rainfall, Temperature and Total Green House Emission (TGH)] using the case of Nigeria. The EKC model includes population density, education expenditure, foreign direct investment, and gross domestic investment as control variables, and it was analysed using the Auto Regressive Distribution Lag (ARDL) econometric technique, which has not been applied in the literature on Nigeria. The results, inter alia, indicate that there is EKC for CO2 and SPM. This implies that the green growth objective can be pursued in Nigeria with concerted efforts. Other environmental pollution indicators did not exert significant influence on economic growth. Therefore, it is recommended that Nigeria’s institutional quality be strengthened to limit environmental pollution in light of economic growth. |
| Keywords: | EKC, Economic Growth, Environmental Pollution, Institutional Quality |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/059&r=all |
| By: | Ha-Hyun Jo (Yonsei Univ); Hae-Dong Kim (Yonsei Univ) |
| Abstract: | The objective of this research is not only to review recent energy poverty indicators including the famous indicators but to provide policy implications through the review of those. A general overview is first presented. The methodologies and energy poverty indicators which have been proposed in the various literature to measure and define energy poverty are a great deal of variety. There are two main approaches about the energy poverty indicators, objective indicators and subjective indicators. Specifically, objective indicators are divided into two parts as first generation that contributing to defining energy poverty and second generation. Also, in order to provide policy implications of domestic, the authors review two main selection criteria of energy policies. This study suggests the ways to improve the selection criteria of energy policies so that narrowing the gap of those by considering the energy efficiency and the residual income, and distinguishing the energy poverty from the income poverty. |
| Keywords: | energy poverty, energy poverty indicators, energy policy, gaps in the energy policy, energy voucher, energy efficiency |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:2019rwp-148&r=all |
| By: | Sruthi Davuluri; René García Francheschini; Christopher R. Knittel; Chikara Onda; Kelly Roache |
| Abstract: | The solar industry in the US typically uses a credit score such as the FICO score as an indicator of consumer utility payment performance and credit worthiness to approve customers for new solar installations. Using data on over 800,000 utility payment performance and over 5,000 demographic variables, we compare machine learning and econometric models to predict the probability of default to credit-score cutoffs. We compare these models across a variety of measures, including how they affect consumers of different socio-economic backgrounds and profitability. We find that a traditional regression analysis using a small number of variables specific to utility repayment performance greatly increases accuracy and LMI inclusivity relative to FICO score, and that using machine learning techniques further enhances model performance. Relative to FICO, the machine learning model increases the number of low-to-moderate income consumers approved for community solar by 1.1% to 4.2% depending on the stringency used for evaluating potential customers, while decreasing the default rate by 1.4 to 1.9 percentage points. Using electricity utility repayment as a proxy for solar installation repayment, shifting from a FICO score cutoff to the machine learning model increases profits by 34% to 1882% depending on the stringency used for evaluating potential customers. |
| JEL: | C53 L11 L94 Q2 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26178&r=all |
| By: | Ibrahim D. Raheem (EXCAS, Liège, Belgium); Aviral K. Tiwari (Rajagiri Business School, Kochi, India); Daniel Balsalobre-lorente (Ciudad Real, Spain) |
| Abstract: | This study explores the role of the information and communication Technology (ICT) and financial development (FD) on both carbon emissions and economic growth for the G7 countries for the period 1990-2014. Using PMG, we found that ICT has a long run positive effect on emissions, while FD is a weak determinant. The interactive term between the ICT and FD produces negative coefficients. Also, both variables are found to impact negatively on economic growth. However, their interactions show they have mixed effects on economic growth (i.e., positive in the short-run and negative in the long-run). Policy implications were designed based on these results. |
| Keywords: | ICT; Financial development; Carbon emissions; Economic growth and G7 countries |
| JEL: | E23 F21 F30 O16 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/058&r=all |
| By: | Osama D. Sweidan; Bashar H. Malkawi |
| Abstract: | We seek to investigate the effect of oil price on UAE goods trade deficit with the U.S. The current increase in the price of oil and the absence of significant studies in the UAE economy are the main motives behind the current study. Our paper focuses on a small portion of UAE trade, which is 11% of the UAE foreign trade, however, it is a significant part since the U.S. is a major trade partner with the UAE. The current paper concludes that oil price has a significant positive influence on real imports. At the same time, oil price does not have a significant effect on real exports. As a result, any increase in the price of oil increases goods trade deficit of the UAE economy. The policy implication of the current paper is that the revenue of oil sales is not used to encourage UAE real exports. |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1909.09057&r=all |
| By: | Jörn Richstein; Karsten Neuhoff |
| Abstract: | Die Klimaziele können nur mit einem Wechsel hin zu neuen Technologien und Praktiken für die Produktion und Nutzung von Grundstoffen, wie Zement, Stahl und Chemikalien, erreicht werden. Die Produktion solcher Grundstoffe macht rund 16 Prozent der europäischen und 25 Prozent der weltweiten Treibhausgasemissionen aus. Der moderate CO2-Preis im europäischen Emissionshandel (EU-ETS) und die unsichere Preisentwicklung bieten jedoch nicht genügend Anreize für Investitionen in und den Einsatz von innovativen klimafreundlichen Optionen. Hierfür sind neue Politikinstrumente notwendig. Projekt-basierte CO2-Differenzverträge sind, in Kombination mit einem Klimapfand, besonders geeignet: Sie senken die Finanzierungskosten von klimafreundlichen Investitionen, setzen die richtigen Anreize für Emissionsminderungen und wären ein klares Signal des Engagements der Regierungen für langfristige politische Ziele. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwakt:23de&r=all |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This research examines the relevance of inclusive development in modulating the role of governance on environmental degradation. The study focuses on forty-four countries in sub-Saharan Africa for the period 2000-2012. The Generalised Method of Moments is employed as the empirical strategy and CO2 emissions per capita is used to measure environmental pollution. Bundled and unbundled governance dynamics are employed, notably: political governance (consisting of political stability/no violence and “voice and accountability†), economic governance (encompassing government effectiveness and regulation quality), institutional governance (entailing corruption-control and the rule of law), and general governance (a composite measure of political governance, economic governance and institutional governance). The following main findings are established. First, the underlying net effect in the moderating role of inclusive development in the governance-CO2 emissions nexus is not significant in regressions pertaining to political governance and economic governance. Second, there are positive net effects from the relevance of inclusive development in modulating the effects of regulation quality, economic governance and general governance on CO2 emissions. The significant and insignificant effects are elucidated. Policy implications are discussed. |
| Keywords: | CO2 emissions; Governance; Sustainable development; Sub-Saharan Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:aby:wpaper:19/006&r=all |
| By: | Fulton, Lewis; Miller, Marshall; Burke, Andrew; Wang, Qian; Yang, Chris |
| Keywords: | Engineering |
| Date: | 2019–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8wn8920p&r=all |
| By: | Anthony Wiskich |
| Abstract: | The framework used to endogenise technology growth by Acemoglu, Aghion, Bursztyn, and Hemous (2012), hereafter AABH, allows the existence of unstable equilibria and does not provide a rationale for specifying which equilibrium should apply when more than one exists. This paper: (i) suggests a rationale for choosing one corner solution used in AABH that constitutes a lower bound for the subsidy or tax required to direct clean research; (ii) argues against use of the other corner solution; and (iii) provides an alternative equilibrium that constitutes an upper bound to the policy required. The alternative methods can produce substantially different results when the elasticity of substitution between clean and dirty inputs is high. |
| Keywords: | Climate change, directed technical change, innovation policy |
| JEL: | O33 O44 Q30 Q54 Q56 Q58 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2019-71&r=all |
| By: | Jamaledini, Ashkan; Soltani, Ali; Khazaei, Ehsan |
| Abstract: | This paper presents a new heuristic algorithm famous as charged system search algorithm for optimal operation of the microgrids (MGs) in the grid-connected mode. The algorithm is also being modified based on a mutation operator technique to speed up its convergence speed. Finally, the model is examined on IEEE 69 bus test system. |
| Keywords: | Power system economics, power system market, power system operation and energy management, industrial economics |
| JEL: | A1 C0 H0 L0 L6 P0 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95896&r=all |
| By: | Preuß, Malte; Reuter, Wolf Heinrich; Schmidt, Christoph M. |
| Abstract: | Ein CO2-Preis setzt Anreize für ein emissionsärmeres Verhalten und Investitionen in emissionsärmere Technologien. Damit dieses Koordinationssignal uneingeschränkt wirken kann, muss es möglichst einheitlich über alle Sektoren, Technologien, Regionen und Emittenten wirken. Für Haushalte führt die Bepreisung zunächst zu einer regressiven Verteilungswirkung; dies kann jedoch durch eine Rückverteilung der Einnahmen in einen progressiven Verlauf geändert werden, sodass Haushalte mit niedrigen Einkommen im Durchschnitt netto entlastet werden. Die Ausgestaltung der Rückverteilung kann auf unterschiedliche Eigenschaften des Rückverteilungsmechanismus abzielen, etwa eine möglichst hohe Transparenz oder das Erreichen einer "doppelten Dividende". Bei aufkommensneutraler Rückverteilung erfahren der mittlere und obere Einkommensbereich, Alleinstehende und Bewohner städtischer Regionen sowie Besitzer von Öl- und Gasheizungen tendenziell die stärkste Nettobelastung. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:svrwwp:082019&r=all |
| By: | Han, Luyi (Oklahoma State University); Winters, John V. (Iowa State University) |
| Abstract: | This paper examines how college students in the United States altered their college major decisions during the energy boom and bust of the 1970s and 1980s. We focus on petroleum engineering and geology, two majors closely related to the energy industry. We find strong evidence that the energy boom increased the prevalence of these two energy-related majors and the energy bust lowered the prevalence of these majors. Effects are particularly strong for young people born in energy intensive states. Thus, college major decisions responded to industry fluctuations with important location-specific effects consistent with frictions to migration and information flows. |
| Keywords: | college major, human capital, higher education, energy boom, energy bust |
| JEL: | I20 J20 J60 R10 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp12614&r=all |
| By: | Puls, Thomas; Schaefer, Thilo |
| Abstract: | In der aktuellen Klimadebatte wird Schweden oft als Vorbild für Deutschland genannt. Schweden hatte bereits im Jahr 1991 eine CO2-Steuer eingeführt und hat diese seither kontinuierlich erhöht. Heute hat Schweden nicht nur die weltweit höchsten Steuersätze auf den CO2-Ausstoß, sondern auch sichtbare Erfolge bei der Reduktion der Emissionen vorzuweisen. Deshalb wird der schwedische Ansatz häufig als potenzielles Vorbild in der aktuellen Debatte um die richtigen Instrumente zur Reduktion der Emissionen in Deutschland genannt. Insbesondere die Emissionen des Straßenverkehrs gehen hierzulande kaum zurück. Bei genauerem Blick auf das schwedische Modell zeigt sich, dass die Einführung der Steuer allein nicht den Rückgang der Emissionen erklären kann. Das liegt auch daran, dass bei Einführung der CO2-Steuer andere Steuern und Abgaben auf Energieträger deutlich gesenkt wurden. Zudem sind die Emissionen im Verkehrsbereich erst seit dem Jahr 2010 deutlich gesunken, was mit einem Hochlauf des Einsatzes von Biokraftstoffen zusammenfällt. Dazu kam es, als Schweden eine Steuerbefreiung auf eben diese Biokraftstoffe eingeführt hatte. Demnach hat erst das Zusammenspiel aus CO2-Bepreisung, einer emissionsarmen Alternative in Form von Biokraftstoffen und deren Befreiung von der Besteuerung zu einer merklichen Reduktion der Emissionen geführt. [...] |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:82019&r=all |
| By: | Sofia Dermisi; Dario Trabucco |
| Abstract: | Column-to-column structural spans have been increasing in mid-rise and high-rise office buildings from 25 feet to 45-50 feet due to progress in artificial lighting technologies, structural systems, tenant pressures and zoning regulations. The length of free spans has a direct impact on the construction cost and a building’s sustainability, as longer spans require more structural materials to be built. The paper analyzes the relationship between column free spans and market performance (vacancy and rents) of tall office buildings while accounting for LEED certification and Energy Star label status. If evidence confirms that other building characteristics, including post construction sustainability adoption, has a higher impact on an office building marketability, new strategies can be initiated to reduce the structural spans of tall office buildings and therefore their embodied energy, without affecting their market value. The paper focuses on the class A office buildings of more than 600,000 square feet in downtown Chicago. The results suggest that buildings with shorter spans experience more vacancy, while rents do not have any statistically significant relationship with free spans. Additionally, higher LEED points are achieved by buildings with shorter spans. |
| Keywords: | High-rise office buildings; Structural spans |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_283&r=all |
| By: | Jan Paek; Veronika Sojková |
| Abstract: | The modern buildings nowadays are becoming so different from traditional building constructions especially in the case of an indoor parameter’s environment and low energy performance. New building materials, new technologies for HVAC, new construction approaches as smart buildings, energy passive buildings, etc. bring new criteria for real estate evaluation. The presence of sophisticated technical solutions and technologies in modern buildings requires a sophisticated approach to their management in order to achieve a high quality environment, health and performance of building users.Quality of indoor environment is based on several factors, divided into two groups – technical parameters and services. The technical properties include lighting, acoustics, air conditioning, ventilation, and heating, and also flexibility of the indoor space, design, colours, facilities etc. On the other side, the services forming the indoor environment are the building security, maintenance, respectively facility management in its entirety. All this addition value of the building is necessary to take into account for real estate valuation purposes. The problem, that needs to be solved continuously in this process, is to objectify all the decisive parameters and properties determining the value of a modern building. Assessing the contribution of the quality of facility management is one of the modern challenges. |
| Keywords: | Facility Management; indoor environment; Market value of buildings; Smart buildings; Utility value of buildings |
| JEL: | R3 |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2019_368&r=all |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:aby:wpaper:19/010&r=all |
| By: | Juan Manuel Julio-Román (Banco de la República de Colombia); Fredy Gamboa-Estrada (Banco de la República de Colombia) |
| Abstract: | We study the relationship between daily oil prices and nominal exchange rates between 1995 and 2019 in Colombia through a Time-Varying Vector Auto-Regressions with residual Stochastic Volatility, TV-VAR-SV, model. For this task we also employ cointegration, Univariate Auto-Regressions with residual Stochastic Volatility, UAR-SVTV, and De-trended Cross Correlation, DCC analyses. We found that a stable longrun relationship between the two processes is lacking. We also found significant time variation in residual volatility and co-volatility. More specifically, we found that both periods of time, the international financial crisis and the oil price drop of 2015, behave conspicuously different from other “more normal” times. These results are consistent with a shift in the features of the DCC at the start of the crisis. Before the crises the DCCs are positive but weak for different windows sizes, turning negative and significant after it. The latter DCCs and their significance increase with the window size. These results are concurrent, also, with two clearly differentiated periods of time; one when oil production was not financially feasible, and thus production, exports and oil related currency inflows were small, and the other when oil production became feasible because of the price increase, which led to a boom in exploration, production, exports and oil related currency inflows. **** RESUMEN: Estudiamos la evolución de la relación entre los precios diarios del petróleo y la tasa de cambio nominal Colombiana entre 1995 y 2019 a través de un modelo de Vectores Auto-Regresivos Tiempo-Variantes con Volatilidad Estocástica Residual. Para esto empleamos también técnicas de co-integración, Auto-Regresiones Univariadas con Volatilidad Estocástica Residual, y Correlaciones Cruzadas Des-tendeciadas. Se encontró que no existe una relación estable de largo plazo entre estos dos procesos. También hallamos evidencia de variación temporal de la volatilidad y co-volatilidad residual. Más específicamente, encontramos que tanto la crisis financiera global como la reducción de los precios de petróleo de 2015 son periodos particularmente distintos de otros periodos “más normales”. Estos resultados son consistentes con un cambio en el comportamiento de las DCC al inicio de la crisis financiera de 2008. En efecto, antes de la crisis estas correlaciones eran positivas pero poco significativas para diferentes tama˜nos de la ventana de estimación, pero después de la crisis se tornaron negativas y significancias. Las últimas DCCs y su significancia se incrementaron a mayores tama˜nos de la ventana. Estos resultados coinciden con dos periodos de tiempo claramente diferenciados en Colombia, uno en el cual la producción petrolera no era financieramente factible, y en consecuencia la producción, exportación y flujos entrantes de divisas por petróleo eran pequeños, y otro donde la producción fue factible, conduciendo a un boom en la exploración, producción, exportación y en los flujos entrantes de divisas relacionados con petróleo. |
| Keywords: | Nominal Exchange Rate, Oil prices, Small Open Economy, Co-Volatility, Tasa de Cambio Nominal, Precios del Petróleo, Economía Pequeña Abierta, Co-Volatilidad |
| JEL: | C22 C51 F31 F41 G15 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:1091&r=all |
| By: | Noori, Ehsan; Khazaei, Ehsan; Tavaro, Mehdi; Bardideh, Farhad |
| Abstract: | In this paper a new approach will be presented for solving one the complicated problems in power systems, known as the unit commitment. Indeed, in this paper, the proposed unit commitment is converted and formulated as the mixed-integer linear programming (MILP) model and solved by utilizing the Yalmip toolbox. Results demonstrates the high efficiency of the proposed method. |
| Keywords: | Yalmip, power system economic, unit commitment, mixed-integer linear programming. |
| JEL: | A1 C0 C6 L0 P0 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:95910&r=all |
| By: | Steven Baker (University of Virginia); Burton Hollifield (Carnegie Mellon University); Emilio Osambela (Board of Governors of the Federal Reserve System) |
| Abstract: | Elementary portfolio theory implies that environmentalists optimally hold more shares of polluting firms than non-environmentalists, and that polluting firms are more highly valued and attract more investment than otherwise identical firms that do not pollute. These results reflect the demand to hedge against states with high pollution, occurring when dirty technology is more heavily and profitably utilized. Pigouvian taxation can reverse the valuation and investment results, but environmentalists will still overweight polluters in their portfolios. We introduce countervailing motives for environmentalists to underweight polluters, comparing the implications when environmentalists coordinate to internalize pollution, or have nonpecuniary disutility from holding polluter stock. With nonpecuniary disutility, introducing a green derivative product may dramatically alter who invests most in polluters, but has no impact on aggregate pollution. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:red:sed019:1255&r=all |