nep-ene New Economics Papers
on Energy Economics
Issue of 2019‒12‒09
37 papers chosen by
Roger Fouquet
London School of Economics

  1. The Elusive Effects of Residential Energy Efficiency Improvements: Evidence from Ukraine By Anna Alberini; Olha Khymych; Milan Scasny
  2. Restructuring Saudi Arabia’s Power Generation Sector: Model-Based Insights By Bertrand Rioux; Axel Pierru; Nader AlKathiri
  3. Estimating Energy Price Elasticities When Salience is High: Residential Natural Gas Demand in Ukraine By Anna Alberini; Olha Khymych; Milan Scasny
  4. Long-term responses to car-tax policies: distributional effects and reduced carbon emissions By Pyddoke, Roger; Swärdh, Jan-Erik; Algers, Staffan; Habibi, Shiva; Sedehi Zadeh, Noor
  5. Restructuring Saudi Arabia’s Power Generation Sector: Model-Based Insights By Bertrand Rioux; Axel Pierru; Nader Alkathiri
  6. Does Daylight Saving Time Save Electricity? Evidence from Slovakia By Peter Kudela; Tomas Havranek; Dominik Herman; Zuzana Irsova
  7. Pathways to Carbon Pollution: The Interactive Effects of Global, Political, and Organizational Factors on Power Plants’ CO2 Emissions By Grant, Don; Jorgenson, Andrew; Longhofer, Wesley
  8. Locational Marginal Network Tariffs for Intermittent Renewable Generation By Tangerås, Thomas; Wolak, Frank A.
  9. A Monte Carlo Simulation Framework to Track Panama NDC Target By Suarez, Ronny
  10. Gasoline Savings From Clean Vehicle Adoption By Tamara Sheldon; Rubal Dua
  11. Enhanced Oil Recovery and CO2 Storage Potential Outside North America: An Economic Assessment By Colin Ward; Wolfgang Heidug
  12. Social innovation in community energy in Europe: a review of the evidence By Hewitt, Richard J; Bradley, Nicholas; Compagnucci, Andrea Baggio; Barlagne, Carla; Ceglarz, Andrzej; Cremades, Roger; McKeen, Margaret; Otto, Ilona M.; Slee, Richard William
  13. The Geopolitics of the Energy Transition By KAPSARC, King Abdullah Petroleum Studies and Research Center
  14. Renewable Energy Financial Modelling: A China Case Study By Karel Janda; Binyi Zhang
  15. Growth Through Diversification and Energy Efficiency: Energy Productivity in Saudi Arabia By Steven Fawkes; Marzio Galeotti; Nicholas Howarth; Moncef Krarti; Alessandro Lanza; Padu Padmanabhan
  16. Theoretical Framework for Industrial Electricity Consumption Revisited By Fakhri Hasanov
  17. Mobility and Energy Impacts of Shared Automated Vehicles: a Review of Recent Literature By Shaheen, Susan PhD; Bouzaghrane, Mohamed Amine
  18. Proceedings: 2nd International Conference on Food and Agricultural Economics: THE USAGE OF DIFFERENT ENERGY SOURCES IN THE ECONOMY By Magda, Robert; Onalan, Mehmet
  19. Identification of Barriers that Affect Panama NDC Target By Suarez, Ronny
  20. Oil subsidies and the risk exposure of oil-user stocks: Evidence from net oil producers By Abdulrahman, Alhassan; Syed Abul, Basher; M. Kabir, Hassan
  21. Increasing Ambition with Blue Carbon By Bryson, Chelsey
  22. Toward Economic Prosperity Through Industrial Energy Productivity Improvement By Dongmei Chen; Nicholas Howarth; Alessandro Lanza; Padu Padmanabhan
  23. On The Evaluation Of Binary Event Probability Predictions In Electricity Price Forecasting By Arne Vogler; Florian Ziel
  24. The impact of environmental policy stringency on industrial productivity growth: A semi-parametric study of OECD countries By Guohua Feng; Keith R. McLaren; Ou Yang; Xiaohui Zhang; Xueyan Zhao
  25. Analisis Penyusunan dan Pelaksanaan Program Audit Laporan Keberlanjutan Perusahaan (Studi pada Perusahaan dalam Industri Minyak dan Gas di Indonesia) By Kurniawan, Putu Sukma
  26. Green triangular co-operation: An accelerator to sustainable development By OECD
  27. International cooperation networks of the BRICS bloc By de Oliveira, Thaiane Moreira; de Albuquerque, Sofia; Toth, Janderson Pereira; Bello, Debora Zava
  28. Identifying productivity when it is a factor of production By Flynn, Zach
  29. Air Quality Warnings and Temporary Driving Bans: Evidence from Air Pollution, Car Trips, and Mass-Transit Ridership in Santiago By Nathaly Rivera
  30. Evaluating the Age-Energy Consumption Profile in Residential Buildings By Estiri, Hossein; Zagheni, Emilio
  31. Climate Policies and the Tax-Interaction Effect, in Context By Macon, Luke; McLellan, Benjamin; Kanamura, Takashi
  32. Stronger together: Strategies to protect local sovereignty, ecosystems, and place-based communities from the global fossil fuel trade By Allen, Maggie; Breslow, Sara; Dolsak, Nives; Bird, Stoney
  33. Towards a comprehensive framework of the relationships between resource footprints, quality of life and economic development By Cibulka, Stefan; Giljum, Stefan
  34. Decarbonisation By Lane, Richard
  35. The artefact of the Natural Resources Curse By Matata Ponyo Mapon; Jean-Paul K. Tsasa
  36. Nigeria's Petroleum Sector and GDP - The Missing Oil Refining Link By Omoregie, Uyiosa
  37. Between the Logics of Market and Mission: Weighting the LEED Green Building Rating System By Duckles, Beth M

  1. By: Anna Alberini (AREC, University of Maryland, College Park, MD 20742, United States); Olha Khymych (nstitute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic); Milan Scasny (Charles University Environment Centre, José Martího 407/2, 162 00, Prague, Czech Republic)
    Abstract: Untapped improvements in energy efficiency in the residential sector may deliver large savings in energy use and the CO2 associated emissions. Yet empirical assessments have been difficult and controversial. We collect monthly natural gas meter readings from a sample of homes in Transcarpathia, in Western Ukraine, an early adopter of the country’s trend away from district heating, from January 2013 to April 2017, a period over which the residential natural gas tariffs rose by over 700%. We combine the monthly meter readings with documentation about each household’s heating-related energy efficiency upgrades to the home (wall, attic or basement insulation; new windows; boiler replacement, and insulation around pipes) to form a panel dataset. We estimate the effect of the energy efficiency renovations on natural gas consumption, controlling for weather, income and government energy assistance. The decision to do the renovations and natural gas consumption are likely endogenous (people do the renovations because they hope to consume less), so we instrument for the renovations by creating a cross-validation instrument based on a supply-side argument. Even for a given type of energy efficiency upgrades, the estimated effect of the renovations varies dramatically in magnitude, depending on whether the renovations are instrumented for and on how detailed the fixed effects are. The coefficients on the renovations are almost always negative in our regressions, but practically and statistically significant only when we instrument for the renovations. This is in agreement with our respondents’ difficulty assessing whether the renovations had saved them gas or money. The IV estimates indicate that insulation delivers 13-24% reductions in natural gas usage, and up to a 5% internal rate of return (IRR) to the investment over 20 years. Judicious use of an existing government program can yield positive IRRs and make energy efficiency upgrades a good investment in a generally poor-performing housing market.
    Keywords: Residential gas demand, long-run effects, tariff reforms, energy efficiency
    JEL: D12 Q41 Q48
    Date: 2019–04
  2. By: Bertrand Rioux; Axel Pierru; Nader AlKathiri (King Abdullah Petroleum Studies and Research Center)
    Abstract: Saudi Arabia plans to reform and privatize its power generation sector as part of the Kingdom’s Vision 2030. To provide analytical insights, we developed a model that simulates the restructuring of the electricity market, along with reforming fuel prices to an energy equivalent of $3/MMBtu.
    Keywords: Capacity Price, Economic Modeling, Electricity Market, Electricity Market Design, Energy Demand, Energy Price Reform, Fuel Prices, Fuel Subsidies, Power Generation, Price Manipulation, Production Capacity, Vision 2030
    Date: 2017–12–20
  3. By: Anna Alberini (AREC, University of Maryland, College Park, MD 20742, United States); Olha Khymych (nstitute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic); Milan Scasny (Charles University Environment Centre, José Martího 407/2, 162 00, Prague, Czech Republic)
    Abstract: Despite its importance for policy purposes (including climate policy and the energy transition), evidence about the price elasticity of natural gas demand in the residential sector is very limited and based on inference from situations with modest variation in prices. We focus on a locale and time when price changes were extreme and presumably salient to consumers, namely Ukraine between 2013 and 2017. We exploit the tariff reforms and detailed micro-level household consumption records to estimate the price elasticity of the demand for natural gas. To isolate behavior, attention is restricted to those households that made no structural energy-efficiency upgrades to their homes, and thus kept the stock of gas-using capital fixed. We further examine the short-run elasticity by restricting the sample to a few months before and after the tariff changes. Our results suggest that under extreme price changes, households are capable of reducing consumption, even without installing insulation or making any other structural modifications to their homes. The price elasticity is about -0.16. Wealthier households, people living in multifamily buildings, and heavy users have more inelastic demands. Households reduced consumption even when they received “subsidies,†namely lump-sum government assistance, suggesting that when the price signal is sufficiently strong, lump-sum transfers have only a minimal effect on consumption. We also find some evidence that the stronger the salience, the stronger the responsiveness to price, although this effect is modest and may partly overlap with that of income or baseline consumption. Our data also suggest that the consumers with the lowest uptake of energy efficiency improvements might be those who—by necessity or through skills—are the most productive at reducing energy use through behaviors.
    Keywords: Residential gas demand, energy transition, short-run price elasticity, tariff reforms, salience, fuel poverty
    JEL: D12 Q41 Q48 H31
    Date: 2019–03
  4. By: Pyddoke, Roger (Research Programme in Transport Economics); Swärdh, Jan-Erik (Research Programme in Transport Economics); Algers, Staffan (TP mod AB); Habibi, Shiva (Chalmers University of Technology); Sedehi Zadeh, Noor (Research Programme in Transport Economics)
    Abstract: We analyze the long-term effects on the car fleet and welfare distribution of three car-related policy instruments intended to reduce CO2 emissions: increased fossil-fuel taxes, an intensified bonus-malus system for new cars, and increased mandated biofuel blending. The effects on the car fleet are analyzed in terms of energy source, weight, and CO2 emissions. Distributional effects are analyzed in terms of income and geographical residence areas. The increased fuel taxes reduce CO2 emissions by 36%, mainly through less driving of fossil-fuel cars. The intensified bonus-malus system for new cars reduces CO2 emissions by 5%. Both these policies shift the car fleet toward increased shares of electric vehicles and increased average weight. Increased mandated biofuel blending has no estimated effect on the car fleet unless prices increase differently from in the reference scenario. The two first policy instruments are weakly progressive to slightly regressive over most of the income distribution, but barely regressive if the highest income group is also included. The fraction of each population group incurring substantial welfare losses is higher the lower the income group. In the geographical dimension, for all policies the rural areas bear the largest burden, small cities the second largest burden, and large cities the smallest burden. The burden in the long term versus the short term is lower for high-income earners and urban residents.
    Keywords: Distributional effects; Equity; Fuel tax; Feebate; Bonus; Malus; Mandated biofuel blend; Car choice
    JEL: D63 H23 R48
    Date: 2019–11–26
  5. By: Bertrand Rioux; Axel Pierru; Nader Alkathiri (King Abdullah Petroleum Studies and Research Center)
    Abstract: Saudi Arabia plans to reform and privatize its power generation sector as part of the Kingdom’s Vision 2030. To provide analytical insights, we developed a model that simulates the restructuring of the electricity market, along with reforming fuel prices to an energy equivalent of $3/MMBtu.
    Keywords: Capacity price, Economic modeling, Electricity market, Electricity market design, Energy demand, Energy price reform, Fuel prices, Fuel subsidies, Price manipulation, Power generation, Production capacity, Vision 2030
    Date: 2017–12
  6. By: Peter Kudela (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic); Tomas Havranek (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic; Czech National Bank, Na Prikope 28, 115 03 Prague 1, Czech Republic); Dominik Herman (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic); Zuzana Irsova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic)
    Abstract: The European Union has recently decided to stop the policy of biannual clock changes in 2021. One reason is that the original rationale for the policy, energy savings, is not supported by a large portion of recent empirical studies. Whether the new permanent time will be standard time or the former daylight saving time has not been decided. Evidence on energy savings from daylight saving time is country-specific, and each country may choose its own time. We examine the effects of the policy in a country for which no studies on daylight saving exist, Slovakia. Using hourly data from the 2010-2017 period, we apply a difference-in-differences approach and estimate energy savings to equal 0.8% of annual electricity consumption. Alternatively, extrapolating the effect from the results of a previous meta-analysis (on different countries), for Slovakia we obtain an even smaller estimate, unlikely to exceed 0.5%. Moreover, our findings suggest that daylight saving time smooths the electricity demand curve.
    Keywords: Daylight saving time, electricity consumption, peak demand, Slovakia
    JEL: C54 Q41 Q48
    Date: 2019–04
  7. By: Grant, Don; Jorgenson, Andrew; Longhofer, Wesley
    Abstract: Climate change is arguably the greatest threat to society as power plants, the single largest human source of heat-trapping pollution, continue to emit massive amounts of carbon into the atmosphere. Sociologists have identified several possible structural determinants of electricity-based CO2 emissions, including international trade and global normative regimes, national political–legal systems, and organizational size and age. But because they treat these factors as competing predictors, scholars have yet to examine how they might work together to explain why some power plants emit vastly more pollutants than others. Using a worldwide data set of utility facilities and fuzzy-set methods, we analyze the conjoint effects of global, political, and organizational conditions on fossil-fueled plants’ CO2 emissions. Findings reveal that hyperpolluters’ emission rates are a function of four distinct causal recipes, which we label coercive, quiescent, expropriative, and inertial configurations, and these same sets of conditions also increase plants’ emission levels.
    Date: 2018–02–05
  8. By: Tangerås, Thomas (Research Institute of Industrial Economics (IFN)); Wolak, Frank A. (Program on Energy and Sustainable Development and Department of Economics)
    Abstract: The variability of solar and wind generation increases transmission network operating costs associated with maintaining system stability. These ancillary services costs are likely to increase as a share of total energy costs in regions with ambitious renewable energy targets. We examine how efficient deployment of intermittent renewable generation capacity across locations depends on the costs of balancing real-time system demand and supply. We then show how locational marginal network tariffs can be designed to implement the efficient outcome for intermittent renewable generation unit location decisions. We demonstrate the practical applicability of this approach by applying our theory to obtain quantitative results for the California electricity market.​
    Keywords: Ancillary services costs; Efficiency; Locational marginal network tariffs; Renewable electricity generation; System stability
    JEL: L94 Q20 Q42
    Date: 2019–11–29
  9. By: Suarez, Ronny
    Abstract: The 2015 Paris Agreement represents a restarting point for combating climate change. The Agreement introduces the National Determined Contributions (NDC) to control greenhouse gas emissions. This paper provides a step-by-step framework to evaluate Panama’s renewable energy contribution commitment in terms of CO2eq mitigation. Monte Carlo Simulations are used to compute dynamic scenarios of MtCO2eq emissions determining that the occurrence of delays in the entry into operation of specific projects combined with the presence of El Niño phenomenon could increase, up to 45%, the value of the CO2eq emissions compared against baseline scenario.
    Keywords: Climate Change, Paris Agreement, NDC, Panama, CO2eq, Monte Carlo
    JEL: A1 C8
    Date: 2019–11–18
  10. By: Tamara Sheldon; Rubal Dua (King Abdullah Petroleum Studies and Research Center)
    Abstract: Without the option to purchase plug-in electric and/or hybrid vehicles, conventional counterfactuals used in literature may underestimate the fuel savings from clean vehicle adoption, thus overestimating the costs of securing associated environmental benefits. Using a nationally representative sample of new car purchases in the U.S., a vehicle choice model-based counterfactual approach is proposed that allows for the prediction of what consumers would purchase if these clean vehicles were unavailable. The cost of demand-side policies in the form of financial incentives to encourage plug-in electric vehicle adoption is estimated.
    Keywords: Carbon Dioxide Emissions, Clean vehicle adoption, Economic modeling, Fuel efficiency incentives, Fuel savings, Gasoline consumption, Greenhouse Gas Emissions (GHG), Hybrid electric vehicles, Plug-in electric vehicles, Transportation
    Date: 2018–01
  11. By: Colin Ward; Wolfgang Heidug (King Abdullah Petroleum Studies and Research Center)
    Abstract: Storing carbon dioxide (CO2 ) in oil reservoirs as part of CO2 -based enhanced oil recovery (CO2 -EOR) can be a cost-effective solution to reduce emissions into the atmosphere. In this paper, we analyze the economics of this option in order to estimate the amount of CO2 that could be profitably stored in different regions of the world. We consider situations in which the CO2 -EOR operator either purchases the CO2 supplied or is paid for its storage. Building upon extensive data sets concerning the characteristics and location of oil reservoirs and emission sources, the paper focuses on opportunities outside North America. Using net present value (NPV) as an indicator for profitability, we conduct a break-even analysis to relate CO2 supply prices (positive or negative) to economically viable storage potential.
    Keywords: Carbon dioxide storage, Carbon pricing, Climate change, CO2 based enhanced oil recovery (CO2-EOR), Decarbonization, Enhanced oil recovery
    Date: 2018–01
  12. By: Hewitt, Richard J; Bradley, Nicholas; Compagnucci, Andrea Baggio; Barlagne, Carla; Ceglarz, Andrzej; Cremades, Roger; McKeen, Margaret; Otto, Ilona M.; Slee, Richard William
    Abstract: Citizen-driven Renewable Energy (RE) projects of various kinds, known collectively as community energy (CE), have an important part to play in the worldwide transition to cleaner energy systems. On the basis of evidence from literature review and an exploratory survey of 8 European countries, we investigate European CE through the lens of Social Innovation (SI). Broadly, three main phases of SI in CE can be identified. The environmental movements of the 1960s and the “oil shocks” of the 1970s provided the catalyst for a series of innovative societal responses around energy and self-sufficiency. These first wave CE innovations included cooperatives (e.g. in Sweden and Germany) who financed and managed risks for RE developments in the absence of support from governments and banks. A second wave of SI relates to the mainstreaming of RE and associated government support mechanisms. In this phase, with some important exceptions, successful CE initiatives were mainly confined to those countries where they were already embedded as innovators in the previous phase. In former communist countries of central and eastern Europe (Poland, former East Germany) CE development was hindered by societal mistrust of cooperative movements for their association with the state socialism of the past. In Scotland, UK, strong public support was given to CE, and a new form, the Community Development Trust, emerged and was later replicated elsewhere in the UK. The third phase of CE innovation relates to the societal response to the Great Recession that began in 2007-8 and lasted most of the subsequent decade. Though climate change had become a pressing concern, CE initiatives formed around this time were also strongly focused around democratization of energy and citizen empowerment in the context of rising energy prices, a weak economy, and a production and supply system dominated by excessively powerful multinational energy firms. CE initiatives today are more diverse than at any time previously, and though seriously constrained by mainstream energy policy in most countries, are likely to continue to act as incubators for pioneering initiatives addressing virtually all aspects of energy.
    Date: 2018–10–07
  13. By: KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center)
    Abstract: Starting in 2017, KAPSARC and the Clingendael International Energy Program (CIEP) have convened a series of workshops on the Role of Oil in the Low Carbon Energy Transition. This workshop held on April 25th, 2019 took place in Hus Clingendael, The Hague, under a modified version of the Chatham House Rule under which participants consented to be listed. However, none of the content in this briefing can be attributed to any individual attendee.
    Keywords: Energy Transition, Geoppolitics, Low Carbon Energy Tranisition
    Date: 2019–11–24
  14. By: Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic; Department of Banking and Insurance, Faculty of Finance and Accounting, University of Economics, Prague, Namesti Winstona Churchilla 4, 130 67 Prague, Czech Republic); Binyi Zhang (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Opletalova 26, 110 00, Prague, Czech Republic)
    Abstract: In this paper, we analyse the dynamic relationship among the Chinese renewable energy stock prices, the U.S renewable energy stock prices, oil prices and technology stock prices. We apply a four-variable Lag Augmented Vector Autoregressive (LA-VAR) model to study the return interactions among the variables. Moreover, we also use Generalized Autoregressive Conditional Heteroskedasticity (GARCH) models to study the dynamic conditional volatility of the Chinese renewable energy stock prices. The empirical results indicate that both return and conditional volatility of the Chinese renewable energy stock prices can be explained by past movements of the U.S renewable energy stock prices and technology stock prices. In addition, we find significant evidence to support the existence of the GARCH effects in the Chinese renewable energy stock prices. However, only weak statistical evidence reveals the significance of the leverage effects in the Chinese renewable energy stock market.
    Keywords: Renewable energy, Financial modeling, China
    JEL: Q20 G15
    Date: 2019–05
  15. By: Steven Fawkes; Marzio Galeotti; Nicholas Howarth; Moncef Krarti; Alessandro Lanza; Padu Padmanabhan (King Abdullah Petroleum Studies and Research Center)
    Abstract: With domestic energy demand in Saudi Arabia expected to potentially double by 2030, managing the relationship between energy consumption and economic growth will be very important for the Kingdom’s sustainable development. To assist in this task, this report recommends using energy productivity as an indicator and policy framework to help inform policymakers as to where and how the most value can be achieved from energy use.
    Keywords: Building Sector, Economic Growth, Energy Consumption, Energy Demand, Energy Efficiency, Energy Price Reform, Energy Productivity, Greenhouse Gas Emissions (GHG), Industrial Strategy, Oil Exports, Policy Development, Policy framework, Transportation, Vision 2030
    Date: 2017–11–24
  16. By: Fakhri Hasanov (King Abdullah Petroleum Studies and Research Center)
    Abstract: Policymakers should expect that the energy price reform in Saudi Arabia will reduce industrial electricity consumption. However, this reduction will be slight as the price effect is found to be very small. At the same time, policymakers should be aware that the increasing population aged 15-64, and all those over 15, will lead to an increase in industrial electricity consumption. Lastly, the estimations show that industrial electricity consumption will fully absorb shocks including policy interventions in less than a year.
    Keywords: Cointegration, Demography, Electricity consumption, Electricity demand, Equillibrium correction
    Date: 2019–11–24
  17. By: Shaheen, Susan PhD; Bouzaghrane, Mohamed Amine
    Abstract: The purpose of this review is to present findings from recent research on Shared automated vehicles (SAV) impacts on mobility and energy. While the literature on potential SAV impacts on travel behavior and the environment is still developing, researchers have suggested that SAVs could reduce transportation costs and incur minimal increases in total trip time due to efficient routing to support pooling. Researchers also speculate that SAVs would result in a 55% reduction in energy use and ~ 90% reduction in greenhouse gas (GHG) emissions. SAV impacts on mobility and energy are uncertain. Researchers should carefully track SAV technology developments and adjust previous model assumptions based on real-world data to produce better impact estimates. SAVs could prove to be a next technological advancement that reshapes the transportation system by providing a safer, efficient, and less costly travel alternative.
    Keywords: Engineering, Shared automated vehicles, Travel behavior, Mobility Greenhouse gases, Energy consumption, Shared automated vehicle policy
    Date: 2019–11–26
  18. By: Magda, Robert; Onalan, Mehmet
    Abstract: In this essay we analysethe global problems which are connected with limited – mainly fossil – resources and population growth, and focusing those possibilities – renewable resources – which can help us to substitute them. The climate change that threatens the entire human race – and has been proven to accelerate due to human activities – requires quick action. Greenhouse gases must be reduced and we have to prepare for weather anomalies associated with climate change. Increasing energy efficiency and the use of environmentally sound technologies are important issues of cost-effectiveness in the economy. Our goal is to develop and generalize technologies with low carbon intensity throughout the total life cycle in order to reduce the effects of pollution and climate change. A shift towards “green economy” also raises doubts and carries risks. It is advisable to analyse the effects of climate change so that humanity may be able to prepare for the changes. The future is not written yet and all options are open, but there is not much time left. If we do not change our behaviour, the idea of a sustainable future will simply be mirage and nothing more. We analyse population growth and the exponentially increasing energy consumption we have crossed the limits of the Earth's biological carrying-capacity. One of the key factors, of showing the way to draft, the future prospects and strategies, which are based on the results of sciences. However, we can attain results only if – with the presence of renewable resources – we use innovations that provide living in the long run.
    Keywords: Environmental Economics and Policy, Resource /Energy Economics and Policy
    Date: 2018–04
  19. By: Suarez, Ronny
    Abstract: Panama defines its National Determined Contributions (NDC) in the energy sector in terms of an increase in the installed capacity of alternatives energy sources renewable (solar, wind and biomass). The literature review was used to define four categories of barriers that affect the development of renewable projects: technical, institutional, economic and social. The content analysis of the ASEP’s resolutions allowed to identify the technical barrier as the main obstacle to the deployment of energy projects.
    Keywords: NDC, Panama, Barriers, Renewable Energy, Content Analysis
    JEL: A1
    Date: 2019–11–25
  20. By: Abdulrahman, Alhassan; Syed Abul, Basher; M. Kabir, Hassan
    Abstract: Using a sample of 828 oil-user firms from 14 net oil-producing countries, spanning from Jan 2004 to Dec 2015, we show that stock returns of oil-user companies increase with lagged oil price returns and decrease with lagged oil price volatility. Furthermore, the evidence suggests that oil-user stocks operating in countries with larger fuel subsidies tend to be more exposed to oil returns but not oil volatility. Intuitively, when the oil price increases (decreases), oil-user stocks that operate in countries with larger oil subsidies gain (lose) more than oil-user stocks in countries with smaller fuel subsidies. However, both types of stocks experience losses when the oil market becomes more volatile, with no statistically significant difference between their losses. Our evidence implies a diversification benefit for international investors to reduce their exposure to oil risk. Our results are robust because of the use of alternative proxies, econometric methodologies, and model specifications.
    Keywords: Oil price risk, Oil-producing countries, Oil subsidies, Stock performance
    JEL: G1 G2 Q3 Q4
    Date: 2019–11–23
  21. By: Bryson, Chelsey
    Abstract: In 2015, the historic Paris Agreement set a global goal of limiting warming to “well below 2 degrees” through a robust, country-driven framework. Unfortunately, just two years later, it is increasingly clear that the global community is not on track to meet this objective. This is evidenced by recent studies projecting that temperatures may increase by between 2.7-3.7°C by 2100, and continue to rise for many centuries thereafter given inertia in the climatic system.1 Further, the IPCC is increasingly including Negative Emissions Technology (NETs) in their models in order to achieve the 2-degree target. While many hear the term ‘CDR’ and think of Bioenergy and Carbon Capture and Storage (BECCS) or Direct Air Capture (DAC), blue carbon is a lesser-known but low-cost and effective CDR option that can help meet the goals set out in Paris.
    Date: 2018–01–11
  22. By: Dongmei Chen; Nicholas Howarth; Alessandro Lanza; Padu Padmanabhan (King Abdullah Petroleum Studies and Research Center)
    Abstract: In this report, we explore the main trends and policies that relate to industrial energy productivity in China and Saudi Arabia, focusing on energy efficiency, structural economic reform, industrial upgrading and energy pricing. Our objective is to increase shared understanding on these issues as both countries deepen their engagement as part of China’s Belt and Road Initiative and Saudi Arabia’s Vision 2030.
    Keywords: Belt and Road Initiative (BRI), Climate Policy, Energy efficiency, Energy intensity, Energy pricing, Industrial energy productivity, Knowledge exchange, Vision 2030
    Date: 2018–02
  23. By: Arne Vogler; Florian Ziel (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen (Campus Essen))
    Abstract: In this paper we present an evaluation framework for predictions of binary events in probabilistic electricity price forecasting. It employs the MSE-equivalent QPS together with the DM test and allows for further insights about deficiencies of the considered models. Additionally, techniques from the field of classification are considered, which extend our framework and are particularly suited for the evaluation of predictions of rare events. We consider binary events with direct applicability to a generator’s daily decision making such as profitability of a pumped-hydro storage plant and evaluate the respective forecasts statistically. We show that the task of forecast evaluation can be simplified from assessing a multivariate distribution over prices to assessing a univariate distribution over a binary outcome, fully characterized by a single probability.
    Keywords: Probabilistic Forecasting, Binary Predictions, Classification, Electricity Price Forecasting
    JEL: C53 C38 Q47
  24. By: Guohua Feng (Department of Economics, University of North Texas); Keith R. McLaren (Department of Econometrics and Business Statistics, Monash University); Ou Yang (Melbourne Institute: Applied Economic & Social Research, The University of Melbourne); Xiaohui Zhang (Business School, University of Exeter); Xueyan Zhao (Department of Econometrics and Business Statistics, Monash University)
    Abstract: This paper employs a semi-parametric varying coefficient system approach to investigating the impact of environmental policy stringency on a nation's productivity growth using data for a panel of OECD countries over a period of two decades. A new cross-country proxy of environmental policy stringency is employed. Our results show that while stricter environmental policies might shift a country's total cost in production upward, for countries which have already adopted relatively more stringent environmental policies, further increasing their policy stringency seems to enhance these countries' productivity in the long run. We also find that more stringent environmental policies seem to render a country's use of intermediate inputs more inelastic to their own prices and decrease the substitutability between labour and intermediate inputs in the long run. We argue that more stringent environmental policies would exert tighter control over the use of several intermediate inputs such as energy, raw materials, pollution-intensive services etc, leading to the use of these inputs being less sensitive to changes in their market prices. Tighter control over the use of these intermediate inputs would also render them less of a substitute to labour input.
    Keywords: environmental policy stringency; productivity growth; semi-parametric varying coefficient system; OECD countries
    JEL: C14 D24 Q58
    Date: 2019–11
  25. By: Kurniawan, Putu Sukma (Universitas Pendidikan Ganesha)
    Abstract: This article aims to provide an understanding of the preparation and implementation of the audit program on the company's sustainability report. The audit on the sustainability report aims to provide confidence that the information presented in the sustainability report is correct and in accordance with GRI G4. Guidelines for the preparation and implementation of the audit program on sustainability reports are based on AA 1000 Assurance Standard (AA1000AS) and AA 1000 AccountAbility Principles (AA1000APS) guidelines. The object of research is the company's sustainability report, especially the sustainability report of companies engaged in the oil and gas industry. The research method uses descriptive methodology and literature review research design. The result of the research resulted a model of audit implementation on company sustainability report. The results of this study are expected to provide an understanding of the company's sustainability report audit and support the sustainability reporting process in Indonesia. Keywords: audit; AA1000AS; AA1000APS; GRI G4; sustainability report; oil and gas industry
    Date: 2018–04–10
  26. By: OECD
    Abstract: This report showcases how triangular co-operation can contribute to achieving ‘green’ objectives (e.g. on climate change mitigation, climate change adaptation, biodiversity, desertification, and local environmental issues). Data collected through an OECD survey on triangular co-operation (2015) and desk research uncovered 224 triangular projects targeting green objectives, involving 91 countries and international organisations, out of a total of 658 triangular co-operation projects for the period 2014-18. Given the available evidence (data, evaluations and interviews with project managers), the report shows that triangular activities can deliver green goals in innovative, flexible and cost-effective ways within and across regions – and thus could help accelerate implementation of the Sustainable Development Goals and other international green agreements (e.g. the Paris Agreement). Nevertheless, there are several barriers that prevent further deployment of this modality, including lack of awareness on triangular co-operation among the different green communities, insufficient evidence on the potential of green triangular co-operation, and few dedicated vehicles that can pilot and scale-up successful initiatives. The report proposes a number of recommendations for policy makers to overcome these barriers.
    Keywords: biodiversity, climate change mitigation and adaptation, development co-operation, environment, green growth, green policy, green triangular co-operation, sustainable development
    JEL: O13 O19 O44 Q56
    Date: 2019–12–03
  27. By: de Oliveira, Thaiane Moreira; de Albuquerque, Sofia; Toth, Janderson Pereira; Bello, Debora Zava
    Abstract: Since the BRICS Declaration in Cape Town in 2013, its five member countries have committed to cooperation programs in science, technology and innovation (STI), based on the five strategic thematic areas assigned to each signatory: climate change and mitigation of catastrophes (Brazil); water resources and pollution treatment (Russia); geospatial technology and its applications (India); new and renewable energy, and energy efficiency (China); and astronomy (South Africa). Five years after the Declaration and almost a decade after the First BRICS Summit, the evaluation of the strengthening of international cooperation among countries remains a challenge, due to their low presence in the large index databases commonly used for the collection of scientific data, such as Web of Science and Scopus. The proposal of this research is to carry out a study on international cooperation among the countries in the last five years through the Dimensions platform, based on the incidence of international co-authoring and co-financing of research agencies from the five countries, seeking to highlight the following points: the networks that consolidate themselves from the international cooperation among the BRICS countries, areas emerging in research with incidences of co-authorship, and how the research networks have been developed around the five strategic areas defined in the BRICS Cape Town Declaration. It aims to evaluate how the international cooperation of the BRICS bloc in strategic thematic areas has been growing, pointing to possible areas of strengthening of international partnerships that can be deployed through this study.
    Date: 2018–08–04
  28. By: Flynn, Zach
    Abstract: Economists typically model a plant's productivity as an exogenous characteristic, but the people who run and work at manufacturing plants make choices, at a cost, that affect plant productivity. I develop a method to partially identify the productivity distribution when such choices determine productivity. The method uses a monotone comparative static result I prove in a general economic model. It does not require instruments or timing assumptions. I use the method to study the effect of implementing market-based pricing on productivity in the electricity generation industry.
    Date: 2018–10–17
  29. By: Nathaly Rivera (University of Alaska Anchorage)
    Abstract: Driving restrictions are a common governmental strategy to reduce airborne pollution and traffic congestion in many cities of the world. Using high-frequency data on air pollution, car trips, and mass-transit systems ridership, I evaluate the effectiveness of temporary driving bans triggered by air quality warnings in Santiago, Chile. I employ a fuzzy regression discontinuity design that uses the thresholds in the air quality index used to announce these warnings as instruments for their announcement. Results show that these temporary bans reduce car trips by 6-9% during peak hours, and by 7-8% during off-peak hours. This is consistent with air pollution reductions during peak hours, and with increases in the use of Santiago's mass-transit systems during hours the systems run with excess capacity. Increments in mass-transit ridership uncover the importance of alternatives modes of transportation in securing the effectiveness of temporary driving bans.
    Keywords: Air Pollution, Pollution Alerts, Environmental Episodes, Driving Restrictions, Latin America
    JEL: Q52 Q53 R41
    Date: 2019–11
  30. By: Estiri, Hossein; Zagheni, Emilio
    Abstract: Age is an important proxy for many life course trajectories. The relationship between energy consumption and age is complex and understudied. We evaluated the existence and determinants of an age-energy consumption profile in the U.S. residential sector, using microdata from four waves of the Residential Energy Consumption Survey (RECS) in 1987, 1990, 2005, and 2009. We constructed pseudo cohorts from Bayesian generalized linear model estimates to draw micro-profiles for energy consumption across the life course. Overall, we found that residential energy consumption increases over the life course. Much of the increase in energy consumption is due to housing size. Variations in the age-energy consumption micro-profiles can be described by concave and convex functions. In contrast to previous research that suggested that population aging would reduce energy demand, our results indicate that changing population age structure could amplify residential energy demand.
    Date: 2018–09–05
  31. By: Macon, Luke; McLellan, Benjamin; Kanamura, Takashi
    Abstract: The tax-interaction effect is, arguably, a lynchpin in the modern apparatus substantiating a trade-off between economic efficiency and environmental quality. In recent years, it has come into particular focus in discussions of climate policy, meriting mention inside and outside of academia. Given relatively simple scenarios, the tax-interaction effect demonstrates that resultant distortions in the labor market explode the cost of most conventional environmental policy tools. It is the aim of this discourse to introduce concepts that will add realistic complexity to scenarios exhibiting the tax-interaction effect, allowing it to be placed better into the context of a real-world economy. This is done by synthesizing conclusions across widely differing bodies of literature to suggest perspectives which bring forward related, important and untapped concepts. Four findings are presented. First, recent developments in understanding of work effort open the possibility for previously modeled labor distortions to divert from real behavior. Second, pre-existing labor supply market failures possibly distort work incentives in tandem with labor taxes. Third, perspectives and results from environmental willingness to pay literature and median voter theory dictate that carbon policy distorts the labor market differently in the presence of a voting system. Each finding is conducive to reconsideration of climate policy costs as well as the tax-interaction effect in a real setting. Sections are written for a broad audience in academia and policymaking alike.
    Keywords: tax-interaction effect; climate policy; environmental policy; economic policy; behavioral biases; median voter theory; labor economics; labor distortions; willingness-to-pay; work incentives
    JEL: J20 Q54
    Date: 2019–11–18
  32. By: Allen, Maggie; Breslow, Sara; Dolsak, Nives; Bird, Stoney
    Abstract: In the Pacific Northwest, residents are mobilizing to prevent the coastal export of fossil fuels and protect unique ecosystems and place-based communities. This paper examines the diverse groups, largely from the Bellingham area, and how they succeeded in blocking construction of what was to be the largest coal-shipping port in North America, the Gateway Pacific Terminal (GPT). Tribes, environmental organizations, faith-based groups, and other citizen groups used a multitude of approaches to prevent development, both independently and in concert. This paper reviews the various ways in which the groups collaborated and supported one another to resist the neoliberalization of the coast and support local sovereignty, unique ecosystems, and place-based communities. Groups like Power Past Coal, Protect Whatcom, and Coal-Free Bellingham fought for important and protective changes and evidenced communitywide political support, but the sovereign rights of the Lummi Nation were the legal bar to constructing the coal terminal.
    Date: 2019–01–24
  33. By: Cibulka, Stefan; Giljum, Stefan
    Abstract: The relationship between economic affluence, quality of life and environmental implications of production and consumption activities is a recurring issue in sustainability discussions. A number of studies examined selected relationships, but the general implications for future development directions of countries at different development stages are hardly addressed. In this paper, we use a global dataset with 173 countries to assess the overall relationship between resource footprints, quality of life and economic development over the period of 1990-2015. We select the Material Footprint and Carbon Footprint and contrast them with the Human Development Index, the Happiness Index and GDP per capita. Regression analyses show that the relationship between various resource footprints and quality of life generally follows a logarithmic path of development, while resource footprints and GDP per capita are linearly connected. From the empirical results, we derive a generalised path of development and cluster countries along this path. Within this comprehensive framework, we discuss options to change the path to respect planetary and social boundaries through a combination of resource efficiency increases, substitution of industries and sufficiency of consumption. We conclude that decoupling and green growth will not realise sustainable development, if planetary boundaries have already been transgressed.
    Keywords: Decoupling; Post-Growth; Planetary Boundaries; Quality of Life; Resource Footprints; Sustainable Development
    Date: 2019
  34. By: Lane, Richard
    Abstract: This chapter argues that critiques levelled at the anthropocene - that it prematurely settles who the ‘we’ are that bear both the historic responsibility and the brunt of the uneven impacts of contemporary environmental crises - also need to be made of decarbonisation as a goal of global climate governance. It maintains that decarbonisation should, similarly to the anthropocene, be thought of as ‘bad universal’, that in fact currently forecloses the difficult political work necessary to address the multiple complex issues of globe-spanning climate change. Its apparently positive conceptual content (the absolute necessity to reduce global emissions) is written precisely through the silences it imposes on the broad array of conflicts, oppressions and impacts that have historically lead to these emissions through the development of fossil-fuel based capitalism. I outline here the processes of exclusion, exploitation and incoherence through which decarbonisation has been developed, institutionally stabilised and propagated, and highlights the incoherencies that this results in. Through this process it aims to point towards the conditions required for an emancipatory and truly transformatory politics of decarbonisation.
    Date: 2018–05–02
  35. By: Matata Ponyo Mapon; Jean-Paul K. Tsasa
    Abstract: This paper reexamines the validity of the natural resource curse hypothesis, using the database of mineral exporting countries. Our findings are as follows: (i) Resource-rich countries (RRCs) do not necessarily exhibit poor political, economic and social performance; (ii) RRCs that perform poorly have a low diversified exports portfolio; (iii) In contrast, RRCs with a low diversified exports portfolio do not necessarily perform poorly. Then, we develop a model of strategic interaction from a Bayesian game setup to study the role of leadership and governance in the management of natural resources. We show that an improvement in the leadership-governance binomial helps to discipline the behavior of lobby groups (theorem 1) and generate a Pareto improvement in the management of natural resources (theorem 2). Evidence from the World Bank Group's CPIA data confirms the later finding. Our results remain valid after some robustness checks.
    Date: 2019–11
  36. By: Omoregie, Uyiosa
    Abstract: Nigeria is generally referred to as an ‘oil economy’ because of the country’s large amount of oil reserves Yet, the petroleum sector in Nigeria currently contributes less than 10 percent of the country’s gross domestic product (GDP). In comparison, some Gulf states petroleum sector’s GDP contribution is usually more than 30 percent. A fundamental reappraisal of the Nigeria’s petroleum sector’s relationship with the economy is required. This paper posits that the missing link between the petroleum sector and Nigeria’s GDP growth is the country’s petroleum refining capacity. Capacity utilization of Nigeria’s refineries dropped to 14 percent in 2014 against a global average refining capacity utilization of 90 percent. The constraints of crude oil supply to Nigeria’s refineries are revealed as well as policy interventions by the Federal Government of Nigeria aimed to increase in-country oil refining capacity. Refining capacity is suggested as an antidote to Nigeria’s so-called ‘resource curse’.
    Date: 2018–08–06
  37. By: Duckles, Beth M
    Abstract: The utility of regulatory mechanisms such as voluntary standards are becoming a way of changing the market. In this paper, I look at a case of an organizational process that works across institutional logics within the US Green Building Council’s work to develop the next version of the voluntary LEED building standard. I seek to investigate how the regulatory process functions across multiple logics. Research in this area tends to consider the logics as combative. I argue that in the resolution of logics, the work of the staff is to organize the competing logics by using a third logic – one that they feel ambivalent about - to mitigate the dissonance of the market logic and the mission logic and to resolve tensions.
    Date: 2018–10–12

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