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on Energy Economics |
| By: | Gregor Semieniuk (Department of Economics, SOAS University of London; Political Economy Research Institute and Department of Economics, University of Massachusetts Amherst); Isabella M. Weber (Political Economy Research Institute and Department of Economics, University of Massachusetts Amherst) |
| Abstract: | Mitigating climate change requires information about the inequality in energy consumption. Recent contributions (Banerjee and Yakovenko, 2010; Lawrence et al., 2013; Yakovenko, 2010, 2013) have studied energy inequality through the lens of maximum entropy. They claim a weighted international distribution of total primary energy demand should approach a Boltzmann-Gibbs maximum entropy equilibrium distribution in the form of an exponential distribution, implying convergence to a Gini coefficient of 0.5 from above. The present paper challenges the validity of this claim and critically discusses the applicability of statistical equilibrium reasoning to economics from the viewpoint of social accounting. It is shown that the exponential distribution is only a robust candidate for a statistical equilibrium of energy inequality when employing one particular accounting convention for energy flows, the substitution method. But this method has become problematic with a higher renewable share in the international energy mix, and no other accounting method supports the claim of a convergence to a 0.5 Gini. We conclude that the findings based on maximum entropy reasoning are sensitive to accounting conventions and critically discuss the epistemological implications of this sensitivity for the use of maximum entropy approaches in social sciences. |
| Keywords: | global energy inequality, maximum entropy, social accounting |
| JEL: | B40 D63 Q43 |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:soa:wpaper:228&r=all |
| By: | Burgess, Robin; Greenstone, Michael; Ryan, Nicholas; Sudarshan, Anant |
| JEL: | N0 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:102466&r=all |
| By: | Alexander James (University of Alaska Anchorage); Nathaly M. Rivera (University of Alaska Anchorage) |
| Abstract: | We develop an analytical framework in which a natural-resource-extracting firm pays an incumbent politician both legal and illegal bribes in exchange for reductions in the severance tax rate. A positive resource shock increases the marginal benefit of a tax cut and more bribes are given. We test this theory using forty years of U.S. state-level data, measuring legal corruption as contributions to political campaigns from the oil and gas sector, and illegal corruption as both convictions of public corruption and "reflections'' of it, measured as the frequency that words like "corrupt'', "fraud'', and "bribery’’—and their iterations—appear in local newspapers. We find that oil-rich U.S. states are significantly more corrupt than their oil-poor counterparts and that this is especially true during periods of high oil prices, suggesting an underlying causal relationship. Our findings are robust to a variety of modeling assumptions and specifications suggesting that oil—through its effect on political corruption—plays an indirect, critically important, and yet previously overlooked role in shaping public and economic outcomes in the United States. |
| Keywords: | Oil, Rents, Political Corruption, Campaign Finance, Bribery |
| JEL: | Q33 Q32 D72 D73 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:ala:wpaper:2019-04&r=all |
| By: | Dawud Ansari; Ambria Fareed |
| Abstract: | Asset stranding–the unanticipated depreciation of assets (e.g. resource re-serves, infrastructure, stocks) due to market shifts such as policy interventions or innovation–is at the core of current debates in energy and climate. This roundup presents prominent contributions to the discussion with a focus on fuel-exporting economies. We discuss strengths and limits of the concept as well as potential conceptual flaws and the perspective of resource-exporting coun-tries. The discussion highlights that the debate neglects the adaptation by mar-ket players to changing conditions. However, and despite the conceptual short-comings, (economic) diversification figures and energy outlooks show that the (potential) issue is too big to ignore for resource owners and the international community. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwrup:136en&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The International Energy Agency (IEA) and KAPSARC co-hosted an expert workshop on the potential of advanced carbon dioxide (CO2 ) enhanced oil recovery (CO2 -EOR) to decarbonize oil production. The workshop focused on the potential for using CO2 -EOR for CO2 storage and increasing oil production, also known as advanced CO2 -EOR. Over the course of the two-day meeting, over 50 participants from government, industry and academia examined the current status of CO2 -EOR, explored the economic and environmental benefits of advanced CO2 -EOR and discussed the challenges facing its widespread adoption. |
| Keywords: | Advanced carbon dioxide, Carbon emissions, Carbon Offsetting and Reduction Scheme (CORSIA), Carbon pricing, Climate change, Decarbonization, Enhanced oil recovery (EOR), Greenhouse Gas Emissions (GHG), Natural Gas, Regulatory Incentives |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb15&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The way the world uses energy services has entered a period of profound change. However, there is continuing uncertainty about its trajectory in terms of the speed and extent of transition. This will dictate whether the world achieves the 2oC target, and if not, by how much. But what would the world look like if policymakers treated greenhouse gas (GHG) emission targets as binding? |
| Keywords: | Carbon Capture and Storage (CCS), Carbon Tax, Climate Policy, Energy Transition, Greenhouse Gas Emissions (GHG), Gulf Cooperation Council (GCC, Policy Development, Workshop Brief |
| Date: | 2017–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks-2017--wb10&r=all |
| By: | Opeyemi Akinyemi (CEPDeR, Covenant University, Ota, Nigeria); Uchenna Efobi (CEPDeR, Covenant University, Ota, Nigeria); Evans Osabuohien (Covenant University, Ota, Ogun State, Nigeria); Philip Alege (CEPDeR, Covenant University, Ota, Nigeria) |
| Abstract: | This study explores the extent to which regional integration can be a viable tool in driving energy sustainability in the Economic Community of West African States (ECOWAS) sub-region of Africa, and vice versa. It examines the existing opportunities and the attendant challenges for improved firms’ productivity in the sub-region through the appraisal of the ECOWAS West African Power Pool (WAPP). Using three measures of energy sustainability, namely: energy security, energy equity, and environmental sustainability; the study presents the performance of the ECOWAS sub-region in ensuring regional integration for energy sustainability. The findings from the study reveal, inter alia, that there are prospects and benefits for energy integration for sustainable development in the region. Though some progress had been made, there are many challenges. Also, where progress had been made, it is not uniform across the sub-region, though factors such as rising population and political instability could be responsible. It is recommended that the political economy surrounding regional energy integration should be given a priority among the Member States to ensure that there is positive political will for speedy achievement of set goals. Also, investment in human capital to manage the different projects and maintain the facilities cannot be overemphasised. |
| Keywords: | ECOWAS, Energy, Green growth, Sustainable development, Regional Integration |
| JEL: | F15 P28 Q43 R11 R58 |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:19/081&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Carbon capture and storage (CCS) is one of a limited number of ways to reach the Paris Agreement’s objective of net-zero carbon dioxide (CO2) emissions in the second half of this century. The world’s remaining carbon budget of 900 gigatonnes (Gt) will become depleted around 2040 at the current emissions rate of some 40 Gt per year. Deploying CCS at scale provides an economically feasible way of achieving the net-zero objective. A recent KAPSARC publication, “A Mechanism for CCS in the Post-Paris Era,” developed the concept of a new CCS-specific technology mechanism under Article 6 of the Agreement that could overcome historical barriers to the deployment of CCS. This would take the form of a new tradable asset or carbon storage unit (CSU) representing one verified tonne of CO2 stored or sequestered geologically with no intrinsic emissions reduction value. |
| Keywords: | Paris agreement, Carbon Capture and Storage (CCS), Carbon Dioxide emissions (CO2), |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2019-wb27&r=all |
| By: | Edwin Buenaño (School of Physical and Mathematics Sciences, Pontificia Universidad Católica del Ecuador, Quito); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Vicent Alcántara Escolano (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona) |
| Abstract: | We analyse the relationship between the Ecuadorian economy and environmental pollution from an input-output approach, thereby identifying the key sectors in CO2 emissions and establishing a typology of them for the year 2013. The methodology used determines the economic activities that have greater responsibility in the generation of emissions, due to their own production or their interrelation with other activities. In addition, this influence is broken down into two types of effects (own and pure), which allow for a better perspective of the influence that the key sectors exert on the rest of the activities. The results show that, in addition to activities traditionally considered as polluting (transport, electricity and oil derivatives), there are others, such as commerce, construction, telecommunications and government administrative services, which are also highly responsible for the generation of emissions in the entire productive system. |
| Keywords: | CO2 emissions, input–output analysis, key sectors |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1906&r=all |
| By: | Oswald, Andrew J. (Economics and CAGE, University of Warwick); Powdthavee, Nattavudh (WBS, University of Warwick) |
| Abstract: | It is known that people feel less happy in areas with higher levels of nitrogen dioxide NO2 (MacKerron and Mourato, 2009). What else might air pollution do to human wellbeing? This paper uses data on a standardized word-recall test that was done in the year 2011 by 34,000 randomly sampled English citizens across 318 geographical areas. We find that human memory is worse in areas where NO2 and PM10 levels are greater. The paper provides both (i) OLS results and (ii) instrumental-variable estimates that exploit the direction of the prevailing westerly wind and levels of population density. Although caution is always advisable on causal interpretation, these results are concerning and are consistent with laboratory studies of rats and other non-human animals. Our estimates suggest that the difference in memory quality between England’s cleanest and most-polluted areas is equivalent to the loss of memory from 10 extra years of ageing |
| Keywords: | Memory ; NO2 ; PM10 ; air ; pollution ; particulates |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1228&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The United States Energy Information Administration (EIA) and KAPSARC co-hosted an expert workshop on the international outlook for oil and gas, held in Washington, D.C. on September 18, 2018. The workshop focused on the global oil and gas supply and demand equilibrium, the global liquefied natural gas (LNG) outlook, regional LNG developments, the economics of modeling oil demand, and the changing energy mix in the United States and the Kingdom of Saudi Arabia in a global context. During the one-day workshop, over 50 participants from government, industry, and academia examined the current status of global oil and gas markets, and forecasting and modeling methodologies, as well as future trends and likely global challenges for oil and gas markets. |
| Keywords: | Energy demand, Gas markets, Liquified Natural Gas (LNG), Oil markets |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb22&r=all |
| By: | Kendall, Alissa; Ambrose, Hanjiro; Maroney, Erik A. |
| Abstract: | In the United States, vehicle emissions are responsible for 29% of total greenhouse gas (GHG) emissions with the majority of these coming from light-duty vehicles. To reduce GHG emissions, the U.S. has adopted policies to support the development and deployment of low-carbon fuels and zero emission vehicles (ZEVs—e.g., plug-in hybrid electric vehicles [PHEVs] and battery electric vehicles [EVs]). Most current policies focus on emissions from vehicle operation only, omitting significant contributions from vehicle production and other parts of the vehicle and energy life cycle. GHG emissions from vehicle operation and even from operation plus production are almost always lower for EVs than for conventional internal combustion engine vehicles (see Figure). However, as EVs become more efficient, low-carbon electricity becomes more common, and the size of the global EV fleet increases, emissions from production and other non-operation parts of the life cycle become increasingly important. Researchers at UC Davis studied: (i) the effect of different factors on life cycle emissions; (ii) the impact of excluding life cycle emissions from policies; and (iii) potential strategies that might be used to effectively incorporate life cycle emissions in light-duty vehicle GHG policy. This policy brief summarizes the findings from that project. View the NCST Project Webpage |
| Keywords: | Law, Physical Sciences and Mathematics, Electric batteries, Electric power plants, Electric vehicles, Exhaust gases, Greenhouse gases, Life cycle analysis, Manufacturing, Plug-in hybrid vehicles, Regulations, Sales, Standards |
| Date: | 2019–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9gg7f0ft&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Electricity sector reform is a key part of the Kingdom of Saudi Arabia’s economic transformation agenda, as set out in the Saudi Vision 2030 goals, and of achieving its renewable energy targets. The electricity distribution sector in the Kingdom is expected to evolve, with implications for the ongoing affordability, reliability and sustainability of electricity services in the country. Lessons for the Saudi distribution sector can be drawn from international experience, including opportunities and challenges, to better inform policymakers and regulators in the Kingdom about possible evolutionary pathways for the industry. |
| Keywords: | Distributed energy resources, Electric utilities, Electricity market design, Electricity pricing, Future of electricity markets |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb23&r=all |
| By: | Lijuan Huo (Beijing Institute of Technology); Jin Seo Cho (Yonsei Univ) |
| Abstract: | This study aims to directly test for the sandwich-form asymptotic covariance matrix entailed by conditional heteroskedasticity and autocorrelation in the regression error. Given that none of the conditional heteroskedastic or autocorrelated regression errors yield the sandwich-form asymptotic covariance matrix for the least squares estimator, it is not necessary to estimate the asymptotic covariance matrix using the heteroskedasticity-consistent (HC) or heteroskedasticity and autocorrelation-consistent (HAC) covariance matrix estimator. Because of this fact, we first examine testing for the sandwich-form asymptotic covariance matrix before applying the HC or HAC covariance matrix estimator. For this goal, we apply the testing methodologies proposed by Cho and White (2015) and Cho and Phillips (2018) to fit the context of this study by extending the scope of their maximum test statistic to have greater power and further establishing a methodology to sequentially detect the influence of heteroskedastic and autocorrelated regression errors on the asymptotic covariance matrix. We affirm the theory on the test statistics of this study through a simulation and further apply our test statistics to economic and energy price growth rate data for illustrative purposes. |
| Keywords: | Information matrix equality; sandwich-form covariance matrix; heteroskedasticity-consistent covariance matrix estimator; heteroskedasticity and autocorrelation-consistent covariance matrix estimator; economic growth rate; energy price growth rate. |
| JEL: | C12 C22 O47 G17 Q47 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:2019rwp-152&r=all |
| By: | Francesco Vona (Observatoire français des conjonctures économiques) |
| Abstract: | This blog post is partly based on the policy paper published in the journal Climate Policy: ‘Job Losses and the Political Acceptability of Climate Policies: why the job killing argument is so persistent and how to overturn it.’ Concerns for a ‘just transition’ towards a low-carbon economy are now part of mainstream political debates as well as of international negotiations on climate change. Key political concerns centre on the distributional impacts of climate policies. On the one hand, the ‘job killing’ argument has been repeatedly used to undermine the political acceptability of climate policy and to ensure generous exemptions to polluting industries in most countries. On the other hand, the rising populist parties point to carbon taxes as another enhancer of socio-economic inequalities. For instance, the Gilets Jaunes (Yellow vest) movement in France is a classic example of the perceived tension between social justice and environmental sustainability. |
| Keywords: | Low carbon economy; Climate policy; Social justice; Environmental sustainability |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:spo:wpmain:info:hdl:2441/309vnu061i84latgu6i6t1omhj&r=all |
| By: | Pistonesi, Héctor; Bravo, Gonzalo; Contreras Lisperguer, Rubén |
| Abstract: | La planificación energética ha concitado cada vez mayor atención, especialmente después de la crisis del petróleo de los años setenta. Desde entonces, ha venido experimentando un significativo aumento en la mayoría de los países de la región. Sin embargo, no todos la han definido, y menos aún aplicado, de la misma forma. Comúnmente se entiende que se trata de un proceso de formulación y ejecución de políticas que han contribuido a organizar y orientar el futuro del sistema energético local, nacional, regional o incluso mundial. Este proceso generalmente ha sido llevado adelante por organizaciones gubernamentales, pero también por las grandes empresas del sector energético, compañías eléctricas y productores de petróleo y gas. En el marco de la implementación de los objetivos del proyecto “Observatorio Regional sobre Energías Sostenibles”, por intermedio del Foro Técnico de Planificadores Energéticos la Comisión Económica para América Latina y el Caribe (CEPAL) apoya la planificación energética de la región para generar de forma conjunta una visión de largo plazo que dé lugar a una planificación de sistemas energéticos sostenibles, seguros y asequibles, a fin de lograr una complementariedad en el marco de una transición energética en la región. Consecuentemente, la planificación energética sostenible surge como una herramienta útil para la implementación efectiva del Objetivo de Desarrollo Sostenible 7, referente al sector de la energía. |
| Keywords: | RECURSOS ENERGETICOS, POLITICA ENERGETICA, PLANIFICACION DE LA ENERGIA, FUENTES DE ENERGIA RENOVABLES, COOPERACION REGIONAL, INTEGRACION ECONOMICA, DESARROLLO SOSTENIBLE, ENERGIA ELECTRICA, ENERGY RESOURCES, ENERGY POLICY, ENERGY PLANNING, RENEWABLE ENERGY SOURCES, REGIONAL COOPERATION, ECONOMIC INTEGRATION, SUSTAINABLE DEVELOPMENT, ELECTRIC POWER |
| Date: | 2019–11–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:44937&r=all |
| By: | Galindo, Luis Miguel; Beltrán, Allan; Caballero, Karina |
| Abstract: | There is limited evidence on the potential consequences of the implementation of a CO2 aviation tax in developing countries. In this paper we analyze the potential impact of a CO2 aviation tax on the inbound tourism demand from the United States, Canada and Europe to Mexico. The methodology consists of a panel cointegration estimation of the demand for international tourism to Mexico. Unlike previous studies we analyze the potential effect of the tax on both tourism expenditure and the number of airplane arrivals. The results indicate an income elasticity of 1.9 for tourism expenditure and 2.9 for the number of airplane tourist. The price elasticities of airplane tourism expenditure and the number of airplane tourists are -0.94 and -0.39, respectively. The difference in price elasticity between tourism expenditure and number of tourists suggest that a CO2 aviation tax in Mexico would lead to a larger adjustment in total expenditure rather than in trip decisions. The implementation of such tax is therefore consistent with a continuous growth of the demand for tourism. Furthermore, the tax has the potential to generate additional fiscal revenue for 163 - 480 million dollars. The price elasticity of the competitive destination highlights the importance of considering a regional agreement for the implementation of an international CO2 aviation tax. |
| Keywords: | international tourism; carbon dioxide emission; tax; aviation; Mexico |
| JEL: | L93 Q54 |
| Date: | 2018–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:90247&r=all |
| By: | Lourdes Isabel Patiño (Universidad Castro Carazo, Costa Rica); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Vicent Alcántara Escolano (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Josep Lluís Raymond Bara (Departament d'Economia i Història Econòmica, Universitat Autonoma de Barcelona) |
| Abstract: | We analyze the relation of CO2 emissions per capita and primary energy per capita with GDP per capita and other relevant variables, for the period 1971–2011. Two dynamic econometric partial adjustment models are estimated using data from the International Energy Agency. The results suggest a relation that is compatible with the hypothesis of the environmental Kuznets curve, and whose turning points are within the range of the sample, reflecting a change in the relations between both indicators and GDP per capita. Several factors explain this change, the policies applied during the period being crucial. We compute the trajectory of the elasticities of these environmental pressures with respect to GDP, which decline significantly over time. We develop a new method, better fitted for asymmetric distributions, to compute the confidence intervals of these elasticities. Some determinants of the reduction of these environmental pressures are the change in the composition of primary energy sources, which entailed both primary energy savings and a reduction in CO2 emissions, as well as the favorable impact of the regulations imposed by the government aimed at controlling CO2 emissions from the transport and industrial sectors. The results provide important insights for the design of environmental and energy policies in developing countries to allow economic and social improvement without further growth in energy use and emissions. |
| Keywords: | CO2 emissions; environmental Kuznets curve; partial adjustment model; primary energy |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1904&r=all |
| By: | Koch, Torben (Center for Mathematical Economics, Bielefeld University); Vargiolu, Tiziano (Center for Mathematical Economics, Bielefeld University) |
| Abstract: | We consider a price-maker company which generates electricity and sells it in the spot market. The company can increase its level of installed power by irreversible installations of solar panels. In absence of the company's economic activities, the spot electricity price evolves as an Ornstein-Uhlenbeck process, and therefore it has a mean-reverting behavior. The current level of the company's installed power has a permanent impact on the electricity price and affects its mean-reversion level. The company aims at maximizing the total expected profits from selling electricity in the market, net of the total expected proportional costs of installation. This problem is modeled as a *two-dimensional degenerate singular stochastic control problem* in which the installation strategy is identified as the company's control variable. We follow a *guess-and-verify approach* to solve the problem. We find that the optimal installation strategy is triggered by a curve which separates the *waiting region*, where it is not optimal to install additional panels, and the *installation region*, where it is. Such a curve depends on the current level of the company's installed power, and is the unique strictly increasing function which solves a first-order ordinary differential equation (ODE). Finally, our study is complemented by a numerical analysis of the dependency of the optimal installation strategy on the model's parameters. |
| Keywords: | singular stochastic control, irreversible investment, variational inequality, Ornstein-Uhlenbeck process, market impact |
| Date: | 2019–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:bie:wpaper:627&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | As ‘energy transition’ enters the mainstream lexicon, a new narrative is emerging. The presumption that there is an urgent need to achieve full decarbonization via the elimination of fossil fuels is being tempered by calls to capitalize on the opportunities afforded by technology to reduce and even eliminate the greenhouse gas (GHG) footprint of existing energy sources. |
| Keywords: | Green house gas Emission (GHG), Energy transitions, Energy demand, CO2 emissions |
| Date: | 2019–02 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2019-wb20&r=all |
| By: | O. A. Oyedele; M. B. Nuhu |
| Abstract: | The purpose of this paper is to establish the relationship between performance of oil revenue and the property markets in Nigeria. The petroleum industry in Nigeria is the largest on the African continent. As of 2016, Nigeria's petroleum industry contributes about 9% to its economy. The price of oil, Nigeria's main source of government revenues and foreign exchange, started to plunge in 2014. Crude oil prices fell sharply in the fourth quarter of 2014 as robust global production exceeded demand. There are also alternatives to petroleum like shale oil and renewable energies. After reaching monthly peaks of $112 in early part of 2014 per barrel (bbl) and $105/bbl in June, crude oil benchmarks Brent and West Texas Intermediate (WTI) fell to $62/bbl in July and $59/bbl in December, 2014, respectively. It has not gained appreciable value since 2014 and has seriously affected the Nigerian economy. The housing market and positive and negative changes in house prices affect the rest of the economy. The property market is an important part of the real estate sector and a key part of the financial system because of the aggregate finance involved in real estate transactions. The growth of the real estate sector of Nigeria in the fourth quarter of 2017 was -5.92%. This paper will adopt the qualitative and quantitative research methodology to study the property market dynamics between 2014 when the fall in prices started to date, to establish if there is any correlation. The findings will help advice policy makers and investors on impact of oil prices on property market in Nigeria and will assist in property speculation. This research will only cover Lagos, Abuja, Kano and Port Harcourt property markets to generalize for the whole of Nigeria. These areas are the most dynamic property markets in Nigeria. |
| Keywords: | Housing Finance; innovation and technology; property investment performance; Property Market; property price dynamics and economy |
| JEL: | R3 |
| Date: | 2018–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2018_143&r=all |
| By: | Zacharias Bragoudakis (Bank of Greece); Stavros Degiannakis (Bank of Greece); George Filis (Bournemouth University) |
| Abstract: | The aim of this study is to assess whether fuel prices in Greece respond asymmetrically to changes in the global oil prices. To do so, we depart from the current practice in the literature that focuses on fuel prices. Rather, we consider the mark-up of both the refineries and retailers. Even more, unlike the bulk of the existing literature, we take into consideration the whole supply chain, i.e. both the refineries and the retail fuel sector. Hence, we first assess whether the refineries’ mark-up responds asymmetrically to the global oil prices and subsequently whether the retailers’ mark-up shows an asymmetric behaviour relatively to changes in the refineries’ fuel prices. Our findings show that the Greek fuel retailers do not change their mark-up behaviour based on changes of the refined fuel price. By contrast, the asymmetric behaviour is evident in the refineries mark-up relatively to changes in the global oil prices, which is then passed through to the retailers and consumers. Finally, we convincingly show that weekly and monthly data mask any such asymmetric relationship. Thus, we maintain that unless the appropriate data frequency, fuel price transformations and the whole supply chain are considered, misleading findings could be revealed. |
| Keywords: | Oil price shocks; fuel prices; asymmetric responses; rockets and feathers; pass-through |
| JEL: | C22 C32 D40 Q41 |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:bog:wpaper:268&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | When balancing the objectives of affordability, reliability and environmental sustainability of energy supply, the answer in developing Asian economies has historically been unequivocal: Coal is king. This is because these nations placed greater emphasis on the first two objectives at the expense of the third. However, coal markets in Asia now face increasing community pressures for better local air quality and, to a lesser extent, concerns about global climate change. Consequently, policymakers are struggling to find a new optimal energy mix, which preserves the economic benefits of cheap coal but also helps them adhere to increasingly stringent emission norms and climate accords. |
| Keywords: | Air Pollution, Climate Change, Coal, Energy Mix, Policy Development, Policy framework, Renewable Energy, Solar Energy, Workshop Brief |
| Date: | 2017–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks-2017-wb011&r=all |
| By: | Sebastian Gechert; Katja Rietzler; Sven Schreiber; Ulrike Stein |
| Abstract: | Untersucht wird die Verteilungswirkung einer CO2-Bepreisung in den nicht vom Europäischen Emissionshandel abgedeckten Bereichen Wärme und Verkehr. Aufgrund der schnelleren und einfacheren Umsetzung wurde dabei die Bepreisung in Form einer CO2-Steuer betrachtet. Hierfür wurde ein Preispfad angenommen, der im Jahr 2020 bei 35 Euro/Tonne CO2 beginnt und bis 2030 auf inflationsbereinigt 180 Euro/t angehoben wird. Ziel einer solchen Maßnahme ist es, über höhere Preise für fossile Brennstoffe einen geringeren Verbrauch zu befördern, einerseits über sparsameren Umgang, andererseits über Anreize für Investitionen in CO2-neutrale Techniken und für Innovationen in entsprechende Technologien. Als Entlastungsvarianten werden zum einen eine Rückverteilung des Steueraufkommens als Pro-Kopf-Klimaprämie untersucht, zum anderen eine teilweise ausgeschüttete Klimaprämie in Verbindung mit einer relativen Senkung der Strompreise durch Steuerreduktion und einen Ausgleich der EEG-Umlage. Es ergibt sich eine Nettoentlastung für niedrige Einkommensgruppen. Weitere Aspekte wie Budgetwirkungen, Besonderheiten von Sozialleistungsempfängern, Pendlern und anderen ausgewählten Beispielfällen sowie die institutionelle Ausgestaltung der Klimaprämie werden erörtert. |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:imk:studie:65-2019&r=all |
| By: | Andrea De Michelis; Thiago Revil T. Ferreira; Matteo Iacoviello |
| Abstract: | We study the effects of oil prices on consumption across countries and U.S. states, by exploiting the time-series and cross-sectional variation in oil dependency of these economies. We build two large datasets: one with 55 countries over the years 1975-2018, and another with all U.S. states over the period 1989-2018. We then show that oil price declines generate positive effects on consumption in oil-importing economies, while depressing consumption in oil-exporting economies. We also document that oil price increases do more harm than the good afforded by oil price decreases both in the world and U.S. aggregates. |
| Keywords: | Oil prices ; Consumption ; Cross-country ; U.S. states ; Oil dependency |
| JEL: | Q43 E32 F40 |
| Date: | 2019–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1263&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Personal automotive travel is associated with many negative externalities, including air pollution, greenhouse gas (GHG) emissions and traffic congestion. The current cost of driving for motorists does not necessarily account for the costs associated with these externalities. Policymakers are employing a portfolio of policy instruments, including taxes, subsidies, mandates, restrictions, and transit investment, to transfer the costs of these externalities to motorists and the automotive industry. |
| Keywords: | Mobility, Fuel Efficiency Incentives, Automobile Transport, Transportation Policy |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2019-wb25&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The changing landscape in global liquefied natural gas (LNG) markets could make LNG imports a viable option for Saudi Arabia as the Kingdom works to diversify its power mix away from an increased reliance on burning oil to generate electricity. In recent years a number of factors have come together in the LNG sector to create more value for both consumers and producers. These factors include lower supply costs, increased market liquidity, and innovative solutions for market accessibility. |
| Keywords: | Electricity Demand, Electricty Generation, Gas Markets, Liquified Natural Gas (LNG), LNG markets |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2019-wb24&r=all |
| By: | Marius Buchmann |
| Abstract: | The increasing share of renewables in the electricity system results in congestion on all network levels. To address this congestion, the EU Commission proposed that distribution network operators become responsible for local congestion management. Within this paper we analyze the institutional implications of the introduction of local congestion markets and identify three discrimination concerns related to the DSO’s role on these markets. We will argue that the standard governance models (legal unbundling, ownership unbundling, IDSO) are not adequate here. Instead, we discuss two novel approaches: The introduction of Independent Distribution Operators (IDO) or alternatively, a Common Flexibility Platform (CFP). Since the CFP does not require stronger unbundling of DSOs, we recommend to investigate this solution further. |
| Keywords: | local congestion market, congestion management, regulation, unbundling, discrimination |
| JEL: | D47 L52 L L97 L98 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:bei:00bewp:0031&r=all |
| By: | Ambrose, Hanjiro; Kendall, Alissa |
| Abstract: | California’s freight transportation system is a vital part of the state’s economy but is a significant contributor to greenhouse gas emissions and generates an even higher portion of regional and local air pollution. The state’s primary strategy for reducing emissions from the on-road freight sector relies on deploying new vehicle and fuel technologies, such as electric medium- and heavy-duty vehicles. The market for electric truck technologies is developing rapidly. The goal of this research is to quantify the life cycle environmental impacts and life cycle costs for on-road goods movement in California to estimate the abatement potential and economic costs and benefits of electrifying California’s freight truck sector. The study compares the emissions and costs of urban conventional gasoline and diesel Class 3–8 vehicles with electric heavy-duty vehicles (i.e., electric trucks) for a range of freight and commercial vocations. A model of freight vehicle operations is developed based on representative vehicle location data, and linked with life cycle emissions inventory, technology cost, and pollution health damage cost data. The model is then used to assess energy and capacity requirements for electric trucks and battery systems and explore the impacts of a range of charging strategies and vehicle duty cycles (i.e., vocations) on energy, costs, and emissions between 2020 and 2040. Where emissions occur, and how emissions of different pollutants are affected by factors including vocation, duty cycle, powertrain configuration, and fuel pathway, will influence the effectiveness and economic costs of emissions reduction strategies. On a per mile basis, replacing a conventional gasoline or diesel truck can reduce CO2-equivalent (CO2e) emissions by 50%–75% compared to conventional gas and diesel vehicles. Statewide, 100% electrification of in-state Class 8 vehicles by 2040 could reduce annual CO2e emissions by nearly than 30% (50 million metric tonnes per year), and electrification of Class 3 trucks statewide would likely half current PM2.5 emissions from transportation. The costs of emissions abatement from truck electrification ranged from $0.25 to $182 per metric tonne of CO2e for trucks deployed in 2020, but these costs are likely to fall dramatically by 2040. Full electrification of the in-state registered Class 3–8 vehicle fleet by 2040 would significantly reduce criteria pollutants and aerosols emissions; this in turn could reduce pollution related damages in the state by $507 million per year by 2025, and by some $1.6 billion by 2040. View the NCST Project Webpage |
| Keywords: | Engineering, Electric vehicles, goods movement, environmental impact assessment, life cycle costing |
| Date: | 2019–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3427b1cn&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Rising electricity demand and growing fiscal constraints have encouraged governments in the Gulf Cooperation Council (GCC) and Middle East and North Africa (MENA) regions to consider more cooperative approaches to delivering reliable and affordable electricity services. The development of an effective, integrated electricity market is expected to help achieve these objectives efficiently and sustainably. |
| Keywords: | Electricity demand, Electricity sector, Gulf Cooperation Council (GCC), Electricity market integration, Middle East and North Africa (MENA), Power systems, Renewable energy, Subsidies |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb19&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | China and India’s movement of freight have in recent decades produced a significant increase in energy demand. Economic shifts and population growth in these two countries have played a major role in driving this development. The right data and a better knowledge of the trends that are shaping the freight movement are prerequisite steps to understanding the primary determinants of the rapidly rising oil consumption by these two most important emerging economies. |
| Keywords: | China Belt and Road Initiative (BRI), Consumer behavior, e-commerce, Energy demand, Freight, Freight mobility, Freight modeling, Fuel efficiency, Global fuel markets, Indian Ocean Rim Association, Oil consumption, Transportation |
| Date: | 2018–03 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb14&r=all |
| By: | Nathaly M. Rivera (University of Alaska Anchorage) |
| Abstract: | Extractive industries are often challenged by nearby communities due to their environmental and social impacts. If proximity to resource extraction sites represents a disamenity to households, the opening of new mines should lead to a decrease in housing prices. Using evidence from more than 6,000 new extraction sites in Chile, this study addresses whether the heavy environmental and social impacts of digging activities outweigh their local economic benefits to the housing market in emerging economies. Findings from a spatial difference-in-difference nearest-neighbor matching estimator reveal that households near mining activity get compensated with lower rental prices, mostly in places with high perceptions of exposure to environmental pollution. Further analysis suggests that this compensation is lower among new residents of mining towns, which constitutes evidence of a taste-based sorting across space. Results in this study bring to light the need of incorporating welfare effects of potential social and environmental disruptions in future studies addressing the economic impact of new mining operations. |
| Keywords: | Extractive Industries, Mining, Environmental Valuation, Environmental Disamenities, Hedonic Models, Nearest-Neighbor Matching Estimator |
| JEL: | Q53 Q51 Q32 Q34 |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:ala:wpaper:2019-05&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This workshop explored specific opportunities where the Kingdom of Saudi Arabia and China can benefit from cooperation around efforts to improve industrial energy productivity. This is especially timely as both countries move into a closer phase of engagement under China’s Belt and Road Initiative (BRI) and Saudi Arabia’s Vision 2030 plans. |
| Keywords: | China Belt and Road Initiative (BRI), Energy efficiency, Energy mix, Energy productivity, Petrochemicals, Renewable energy, Renewable energy technologies, Vision 2030 |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb18&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Energy demand in the economies of Eastern Africa is among the lowest in the world and represents only a small outlet for the large natural gas resource that has been discovered. Despite its important potential, renewables (with the exception of hydropower) face a long road prior to making any significant penetration in the region. Consequently, if cost competitive, natural gas represents a viable energy source that has the potential to meet the growing population’s needs while mitigating its carbon footprint. |
| Keywords: | Biomass, Compressed natural gas, Decentralized power production, Electricity, Energy access, Energy demand, Energy supplies, Infrastructure development, Liquified natural gas (LNG), Natural gas, Petrochemicals, Renewable energy |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb12&r=all |
| By: | Shuhei Nishitateno (School of Policy Studies, Kwansei Gakuin University); Paul J Burke (Crawford School of Public Policy, Australian National University) |
| Abstract: | About 2.6 million non-compliant vehicles were removed from designated metropolitan areas in Japan after the introduction of vehicle registration restrictions under the 1992 Automobile NOx Control Law. Based on a difference-in-differences framework and using a monitor-level panel dataset for the period January 1981–December 2015, we find that the intervention led to a 3–6% reduction in the monthly mean ambient concentration of nitrogen dioxide (NO2) in the treated areas. Back-of-the-envelope calculations identify benefits equal to about US$104 million as a result of reduced mortality from asthma. |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:1904&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Oil-dependent economies are vulnerable to macroeconomic fiscal instability stemming from high oil price volatility in the short – run and the exhaustibility of oil in the long – run. The workshop discussed the main challenges confronting oil-dependent economies that could stop them from achieving their long-term economic objectives. |
| Keywords: | Economic Diversification, National Wealth Accounting, Resource Curse, Resource rich countires, Sovereign wealth funds, Stabilization funds |
| Date: | 2019–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2019-wb28&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The joint Institute of Industrial Economics, Chinese Academy of Social Sciences (IIE-CASS) and KAPSARC workshop “China’s Policy Drivers of Future Energy Demand” held in July 2018. The recent slowdown in China’s energy demand, primarily driven by decelerating economic growth and structural changes to its economy, has opened a window of opportunity for reforms aiming to establish a more sustainable energy sector and to increase the role of markets. These initiatives could have a significant impact on the country’s future energy consumption and the structure of the energy sector, in turn affecting the global energy markets. They could also have an impact on China’s environmental, energy security and long-term economic development goals. |
| Keywords: | Energy demand, Energy transformation |
| Date: | 2018–12 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb21&r=all |
| By: | Lourdes Isabel Patiño (Universidad Castro Carazo, Costa Rica); Vicent Alcántara Escolano (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona) |
| Abstract: | We analyze the driving factors of CO2 emissions generation and energy intensity during almost four decades. We apply a factorial decomposition for CO2 emissions, starting from the Kaya identity, using the logarithmic mean Divisia index method. The results indicate that the increase in emissions is mainly explained by the affluence effect and the population effect, but is partially offset by the effect of energy intensity and, to a lesser extent, the carbonization effect. We then analyze the driving factors of energy intensity. With this objective, we first transform final energy into its total primary energy requirements. We find that the decrease in total energy intensity is mainly due to the reduction in sectoral energy intensity and, to a lesser extent, to structural change. The most important contribution to the reduction in sectoral energy intensity is explained by efficiency improvement in the transport sector, but also by industry, while the decrease in the share of industry would be the most relevant component explaining the reduction of the structural change effect. This is the first application of this type to the Colombian case and provides useful information for the analysis and design of energy and environmental policies. |
| Keywords: | CO2 emissions, energy efficiency, Kaya identity, LMDI decomposition, structural change. |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1905&r=all |
| By: | Yagyavalk Bhatt; Jitendra Roychoudhury (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | India, like many other countries, is seeking to diversify its automotive fuel mix away from conventional petroleum fuels to alternate, cleaner fuels. The primary reasons for its diversification are energy security and public health due to harmful emissions from automotive fuels. At present, in India, diesel and gasoline are the most common automobile fuels. Increasing demand for these fuels could create serious concerns for the country’s national energy security and air quality. This paper analyzes the government of India’s past and present automotive fuel policy interventions, aimed at both mitigating harmful emissions and addressing the growing concerns of energy security and rising crude oil imports. |
| Keywords: | Alternate fuels, Automotive fuel policies, Greenhouse Gas Emissions (GHG), Road transport |
| Date: | 2019–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2019-dp65&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Over the last decade, India and China have become leading consumers of energy, especially oil, with freight transportation accounting for a large portion. The growth in total transport energy use is directly correlated with the fast-paced urbanization and industrialization of these two economies. The impact of this road-transport growth has seriously degraded the urban air quality and increased congestion and accidents in cities. In response, a keystone strategy being explored by both countries is to use dedicated infrastructure investments to shift freight movement from road to other modes of transport, including rail. At the same time, road-based transport is becoming increasingly energy efficient, has policy support and retains its door-to-door delivery advantage. |
| Keywords: | Air pollution, Energy demand, Energy efficiency, Freight, Infrastructure Investment, Transportation |
| Date: | 2018–06 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb17&r=all |
| By: | Contreras Lisperguer, Rubén; Lindberg, Julia; Dantas, Guilherme; Falcão, Djalma; Taranto, Glauco; Ferreira, Daniel |
| Abstract: | The Brazilian energy sector has reached a preeminent point in its history and has the potential to transform the livelihoods of thousands through innovative and fair energy policies. Since electric power distribution is highly centralized and strictly regulated by the State, it is critical to understand what kind of prospects exist for the diffusion of micro and mini solar photovoltaic generation in Brazil. In this study, a scenario analysis is implemented and the process of constructing the two scenarios, baseline and alternative, is described. Later, a model is presented that estimates diffusion rates based on assumptions established under each of the scenarios. However, scenarios are just one part of the puzzle, and one must recognize the key role to be played by the Brazilian Electricity Regulatlory Agency (ANEEL) and its choices. |
| Keywords: | GENERACION DE ENERGIA FOTOVOLTAICA, INNOVACIONES TECNOLOGICAS, POLITICA ENERGETICA, MODELOS MATEMATICOS, REGULACION ECONOMICA, DISTRIBUCION DE ENERGIA ELECTRICA, PHOTOVOLTAIC POWER GENERATION, TECHNOLOGICAL INNOVATIONS, ENERGY POLICY, MATHEMATICAL MODELS, ECONOMIC REGULATION, ELECTRIC POWER DISTRIBUTION |
| Date: | 2019–11–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:44928&r=all |
| By: | Jordi Perdiguero Garcia (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Alex Sanz (Departament d'Economia i Història Econòmica, Universitat Autonoma de Barcelona) |
| Abstract: | One of the main causes of mortality worldwide is air pollution. To tackle this problem, local, regional and national governments have implemented policies to reduce emissions from industrial and on-road sources. However, when these policies are being designed, shipping emissions are often overlooked. There has been a drastic increase in the demand for cruises and its economic relevance is also growing in port-cities. Barcelona is Europe’s leading cruise port, and it is located near the centre of the city. In this context, this paper analyses the impact of cruise ships in the air quality of the entire city of Barcelona using a dataset with information about pollutants and the number of cruises arriving to the port. We show that there is a direct impact between cruises staying at the port and city pollution. Additionally, the size and age of the cruise also affect air quality. The larger (or newer) the cruise is, the higher the emission generated. Moreover, our simulations show that the whole city is affected by these emissions. |
| Keywords: | Air pollution, Cruise ships emissions, Pollutants, Port externalities, Port of Barcelona, Urban air quality |
| JEL: | D62 L91 Q53 R49 |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1903&r=all |
| By: | Fujii, Tomoki (School of Economics, Singapore Management University); Ray, Rohan (School of Economics, Singapore Management University) |
| Abstract: | This paper outlines Singapore’s major sustainability challenges and its policy response in the areas of land use, transportation, waste management, water, and energy. We review the current and past Concept Plans from the perspective of sustainable land use and provide an overview of transportation policy in Singapore. We also examine Singapore’s policies to manage increasing wastes and review the four tap water management plan. Finally, we look at various initiatives by the government for sustainable use of energy. While Singapore has been successful in many ways in transforming itself into one of the most prosperous and sustainable cities in the world, there remain challenges to make the city even cleaner and greener for a better future. We discuss the opportunities that new technologies will bring about and the role that Singapore can play in building a sustainable city. |
| Date: | 2019–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:smuesw:2019_018&r=all |
| By: | Solange Goncalves; Thiago Rodrigues, Andre Chagas |
| Abstract: | Wind power is an important source of renewable energy. Beyond the environmental dimension, the wind energy may contribute to the local development. Due to its weather conditions, Brazil emerges as one of the leading countries in the generation of wind power. This study estimates the impact of wind farms on the Brazilian labor market, through the exploration of the staggered nature of the sequential process of wind farm implantation between 2004 and 2016. We estimate the treatment effect parameters using a Difference--in--Differences (DiD) approach with: i) multiple time periods, ii) variation in treatment timing, and iii) dynamic treatment effects, through an event study design. We aggregate information from several data sources into a panel and we analyze the impact on employment and wages, by considering economic sectors, educational levels, and firm sizes. Our findings suggest that wind farms increase employment in the industry, agriculture and construction, and increase the wages in all economic sectors. Additionally, we find positive effects on the employment and wages of less--educated workers, and of small and medium--sized firms. The impact of this intervention can last for up to two years. Our results suggest that wind power may generate significant social impacts through the labor market, by contributing to local development and increasing social welfare in developing economies. |
| Keywords: | Wind power; staggered difference-in-differences; event study; employment; wages; labor market |
| JEL: | Q42 C23 R58 |
| Date: | 2019–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2019wpecon41&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | An effective transport policy framework would take into account the costs of rising local pollution, congestion, accidents and global greenhouse gas emissions. The various supply- and demand- side transformations happening in personal mobility provide policymakers with opportunities and challenges for addressing these externalities. |
| Keywords: | Automation, Climate change, Electric vehicles, Carbon tax, Decarbonization, Fuel economy, Greenhouse Gas Emissions (GHG), Mobility, Oil Demand, Policy framework, Regulatrory incentives, Ride-sharing, Transportation |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb13&r=all |
| By: | Brown, David P. (University of Alberta, Department of Economics); Eckert, Andrew (University of Alberta, Department of Economics) |
| Abstract: | Using data from Alberta's wholesale electricity market, we demonstrate the empirical challenges that can arise when employing empirical methodologies to characterize a firm's unilateral profit-maximizing offer curve. We illustrate that such residual demand analyses can result in non-monotonic, downward sloping, optimal best response offer curves violating restrictions imposed on bidding behaviour. We show that this arises because of the highly non-linear nature of residual demand functions firms can face in practice. We find that firms could have achieved the vast majority of expected profits by employing an offer curve that represents a monotonically smoothed version of the often non-monotonic optimal offer curves. Our findings shine light onto empirical challenges associated with commonly employed equilibrium models to analyze firm behaviour in restructured electricity markets. Further, our analysis illustrates that the failure to account for these empirical challenges may lead researchers to incorrect conclusions regarding observed firm behaviour. These findings stress the importance of accounting for regulatory and practical constraints firms face when modeling bidding behaviour in these multi-unit, uniform priced, procurement auctions. |
| Keywords: | Electricity; Market Power; Regulation |
| JEL: | D43 L40 L51 L94 Q48 |
| Date: | 2019–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2019_015&r=all |
| By: | Taiebat, Morteza; Stolper, Samuel; Xu, Ming |
| Abstract: | Connected and automated vehicles (CAVs) are expected to yield significant improvements in safety, energy efficiency, and time utilization. However, their net effect on energy and environmental outcomes is unclear. Higher fuel economy reduces the energy required per mile of travel, but it also reduces the fuel cost of travel, incentivizing more travel and causing an energy “rebound effect.” Moreover, CAVs are predicted to vastly reduce the time cost of travel, inducing further increases in travel and energy use. In this paper, we forecast the induced travel and rebound from CAVs using data on existing travel behavior. We develop a microeconomic model of vehicle miles traveled (VMT) choice under income and time constraints; then we use it to estimate elasticities of VMT demand with respect to fuel and time costs, with fuel cost data from the 2017 United States National Household Travel Survey (NHTS) and wage-derived predictions of travel time cost. Our central estimate of the combined price elasticity of VMT demand is -0.4, which differs substantially from previous estimates. We also find evidence that wealthier households have more elastic demand, and that households at all income levels are more sensitive to time costs than to fuel costs. We use our estimated elasticities to simulate VMT and energy use impacts of full, private CAV adoption under a range of possible changes to the fuel and time costs of travel. We forecast a 2-47% increase in travel demand for an average household. Our results indicate that backfire – i.e., a net rise in energy use – is a possibility, especially in higher income groups. This presents a stiff challenge to policy goals for reductions in not only energy use but also traffic congestion and local and global air pollution, as CAV use increases. |
| Date: | 2019–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:lawarx:dk6qv&r=all |
| By: | O. A. Ogunba |
| Abstract: | Purpose: The aim of this study is to determine costs and benefit of incorporating green features in commercial building with a view to enhancing green building development decisions in Nigeria.Design/Methodology: The study distributed questionnaire to a variety of stakeholders to identify features that makes buildings green in Lagos, Nigeria, determine the cost of identified features, determine the benefits of having green features in the buildings, and determine whether benefits outweigh the costs of green building in Nigeria. The non-financial costs and benefits were quantified and priced using environmental valuation techniques. Capital costs and benefits were brought to their annual equivalent while future costs and benefits were annualized. The Net present value and profitability index were employed in cost-benefit analysis.Findings: The findings indicate that the initial purchase and installation costs of green features in green buildings the study area are fifteen per cent higher than that for conventional buildings but the discounted green costs in use require 25 to 35 per cent less energy and 39 per cent less water annually than conventional buildings. These translate into substantially less electricity and water bills. In addition, green buildings involve higher discounted benefits from productivity and health. Discounted cost benefit analysis showed that green buildings involved positive NPVs over conventional buildings from only eight years into the life span.Practical Implications: The study concluded that medium to long term developers should begin to consider investing in green building in Nigeria given that the benefits outweigh the costs fairly early into the building life span.Originality/Value: The value of the paper is in providing much needed information for enhanced green property investment in Nigeria and Africa. |
| Keywords: | Benefits NPV; Costs; Green Building |
| JEL: | R3 |
| Date: | 2018–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2018_140&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The world of energy is always undergoing transition, but the nature of the current phase of the transition is subject to a wide spectrum of interpretations that are often colored by bias and aspirations for a particular future end-point. In its simplest form, the energy transition is characterized by changes in the global fuel mix, the rapid growth in renewable energy, emerging new transportation patterns and the rapid implementation of new energy technologies. The drive for energy decarbonization is often perceived to underpin all these changes, but in many cases decarbonization is just a result of an ongoing trajectory led by technological innovation. In response to this transition, resource holders have renewed their efforts to adopt new strategies, while in consuming countries energy companies and the financial sector realign to a new reality. Is the energy transition going according to plan and how will the world of energy look in future years? |
| Keywords: | Battery technology, Coal, Decarbonization, Electric vehicles (EVs), Energy demand, Energy mix, Energy transition, Europe, Fuel economy, Greenhouse Gas Emissions, Gulf Cooperation Council (GCC), Liquified Natural Gas, Natural Gas, Nuclear Energy, Oil export revenue, Photovaltaic Manufacturing, Renewable energy, Shared mobility, Transportation |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2018-wb16&r=all |
| By: | KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Timely and accurate oil production data is critical for understanding both the short-term oil market and for global energy balances. In the absence of reliable official data from many key oil producing countries, oil market analysts rely on a range of independent estimates, including those from media and energy organizations and consultants. The OPEC Secretariat uses six of these organizations which it terms ‘secondary sources’: the International Energy Agency, the Energy Information Administration, Platts, Argus, Energy Intelligence and HIS-CERA. Other ‘third-party’ organizations that monitor oil production include, inter-alia, Bloomberg, Reuters, the Middle East Energy Survey (MEES) and Energy Aspects. Many of the current data providers, notably media organizations, tend to focus on month-end snapshots, leaving larger energy organizations and consulting firms to provide more accurate data on energy balances, which are revised over time. |
| Keywords: | Oil Data, Oil Production, Oil Exports, Tanker Tracking |
| Date: | 2019–09 |
| URL: | http://d.repec.org/n?u=RePEc:prc:wbrief:ks--2019-wb26&r=all |
| By: | Lidia Andrés Delgado (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Vicent Alcántara Escolano (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona) |
| Abstract: | We develop an input–output subsystem analysis based on the Ghosh model. Our method analyzes the interrelations in terms of emissions between the different subsystem subsectors and between the subsystem and the rest of sectors of the economy through the decomposition of total emissions into four explanatory components. In contrast to previous subsystem analyses based on the Leontief model, our method considers the emissions of the whole activity of the subsystem and not only those related to its final demand. This is particularly relevant to study the responsibility for emissions of the activity of sectors that produce mainly for other sectors. We apply this method and also the subsystem analysis from the demand-side perspective to analyze the transportation and storage subsystem in Spain in 2014. The activity of the subsystem induced the rest of sectors of the economy to pollute less than the emissions it was induced to emit. There are significant differences between the outcomes from demand- and supply-side perspectives, so that the consideration of both perspectives provides more accurate policy recommendations. |
| Keywords: | Ghosh model, greenhouse gas emissions, input-output, subsystem analysis, transportation and storage sector |
| Date: | 2019–07 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea1902&r=all |