|
on Energy Economics |
| By: | Ekundayo P. Mesagan (Pan Atlantic University, Lagos, Nigeria.); Chidi N. Olunkwa (University of Lagos, Nigeria) |
| Abstract: | This study investigates the effects of energy consumption and capital investment on environmental degradation in selected African countries between 1981 and 2017 using panel cointegration approaches. The Fully Modified and the Dynamic Ordinary Least Squares results affirm that energy consumption positively affects carbon emissions in Algeria, Nigeria, Morocco, and in the panel. At the same time, both also confirm that capital investment positively and significantly impacts carbon emissions in the region. Again, results show that capital investment augments energy use to reduce carbon emissions in Africa significantly. This implies that capital investment can provide needed impetus to reduce environmental degradation in the continent. The study, therefore, recommends that African countries should focus on energy conservation policies to reduce the adverse effect of energy use on carbon emissions. |
| Keywords: | Electricity Consumption, Capital investment, Environmental Degradation, Africa |
| JEL: | Q40 Q42 Q43 Q54 Q57 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:20/022&r=all |
| By: | Dengiz, Thomas; Jochem, Patrick; Fichtner, Wolf |
| Abstract: | A paradigm shift has to be realized in future energy systems with high shares of renewable energy sources. The electrical demand has to react to the fluctuating electricity generation of renewable energy sources. To this end, flexible electrical loads like electric heating devices coupled with thermal storage or electric vehicles are necessary in combination with optimization approaches. In this paper, we develop a novel privacy-preserving approach for decentralized optimization to exploit load flexibility. This approach, which is based on a set of schedules, is referred to as SEPACO-IDA. The results show that our developed algorithm outperforms the other approaches for scheduling based decentralized optimization found in the literature. Furthermore, this paper clearly illustrates the suboptimal results for uncoordinated decentralized optimization and thus the strong need for coordination approaches. Another contribution of this paper is the development and evaluation of two methods for distributing a central wind power profile to the local optimization problem of distributed agents (Equal Distribution and Score-Rank-Proportional Distribution). These wind profile assignment methods are combined with different decentralized optimization approaches. The results reveal the dependency of the best wind profile assignment method on the used decentralized optimization approach. |
| Keywords: | Demand response,Decentralized optimization,Smart grid,Wind and PV integration,Electric heating,Electric vehicles |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:42&r=all |
| By: | Ekundayo P. Mesagan (Pan Atlantic University, Lagos, Nigeria.); Chidi N. Olunkwa (University of Lagos, Nigeria) |
| Abstract: | This study investigates the effects of energy consumption and capital investment on environmental degradation in selected African countries between 1981 and 2017 using panel cointegration approaches. The Fully Modified and the Dynamic Ordinary Least Squares results affirm that energy consumption positively affects carbon emissions in Algeria, Nigeria, Morocco, and in the panel. At the same time, both also confirm that capital investment positively and significantly impacts carbon emissions in the region. Again, results show that capital investment augments energy use to reduce carbon emissions in Africa significantly. This implies that capital investment can provide needed impetus to reduce environmental degradation in the continent. The study, therefore, recommends that African countries should focus on energy conservation policies to reduce the adverse effect of energy use on carbon emissions. |
| Keywords: | Electricity Consumption, Capital investment, Environmental Degradation, Africa |
| JEL: | Q40 Q42 Q43 Q54 Q57 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:20/022&r=all |
| By: | Kerstin H\"otte; Anton Pichler; Fran\c{c}ois Lafond |
| Abstract: | Successfully combating climate change will require substantial technological improvements in Low-Carbon Energy Technologies (LCETs). An efficient allocation of R&D budgets to accelerate technological advancement necessitates a better understanding of how LCETs rely on scientific knowledge. In this paper, we sketch for the first time the evolution of knowledge bases for key LCETs and show how technological interdependencies change in time. We use data covering almost all US patents as well as scientific articles published in the past two centuries to quantify the history of LCETs and their dependence on science. We show how the drivers of low-carbon innovations shifted from Hydro and Wind energy to Nuclear fission, and more recently to Solar PV and back to Wind. Our analysis demonstrates that 1) LCETs rely increasingly on science, 2) Solar PV and Nuclear fusion depend heavily on science, while Hydro energy does not, 3) renewable and nuclear energy technologies rely on a strikingly different kind of science, and 4) there is a remarkable convergence of scientific knowledge bases of renewables over recent decades. These findings suggest a need for technology-specific research policies, although targeted research in renewables is likely to cross-fertilize a wider range of LCETs. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2004.09959&r=all |
| By: | Joseph E. Aldy; Richard J. Zeckhauser |
| Abstract: | For three decades, advocates for climate change policy have simultaneously emphasized the urgency of taking ambitious actions to mitigate greenhouse gas (GHG) emissions and provided false reassurances of the feasibility of doing so. The policy prescription has relied almost exclusively on a single approach: reduce emissions of carbon dioxide (CO2) and other GHGs. Since 1990, global CO2 emissions have increased 60 percent, atmospheric CO2 concentrations have raced past 400 parts per million, and temperatures increased at an accelerating rate. The one-prong strategy has not worked. After reviewing emission mitigation’s poor performance and low-probability of delivering on long-term climate goals, we evaluate a three-pronged strategy for mitigating climate change risks: adding adaptation and amelioration – through solar radiation management (SRM) – to the emission mitigation approach. We identify SRM’s potential, at dramatically lower cost than emission mitigation, to play a key role in offsetting warming. We address the moral hazard reservation held by environmental advocates – that SRM would diminish emission mitigation incentives – and posit that SRM deployment might even serve as an “awful action alert” that galvanizes more ambitious emission mitigation. We conclude by assessing the value of an iterative act-learn-act policy framework that engages all three prongs for limiting climate change damages. |
| JEL: | F53 Q54 Q58 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26991&r=all |
| By: | Weinand, Jann; Ried, Sabrina; Kleinebrahm, Max; McKenna, Russell; Fichtner, Wolf |
| Abstract: | An increasing number of municipalities are striving for energy autonomy. This study determines in which municipalities and at what additional cost energy autonomy is feasible for a case study of Germany. An existing municipal energy system optimization model is extended to include the personal transport, industrial and commercial sectors. A machine learning approach identifies a regression model among 19 methods, which is best suited for the transfer of individual optimization results to all municipalities. The resulting levelized cost of energy (LCOE) from the optimization of 15 case studies are transferred using a stepwise linear regression model. The regression model shows a mean absolute percentage error of 12.5%. The study demonstrates that energy autonomy is technically feasible in 6,314 (56%) municipalities. Thereby, the LCOEs increase in the autonomous case on average by 0.41 €/kWh compared to the minimum cost scenario. Apart from energy demand, base-load-capable bioenergy and deep geothermal energy appear to have the greatest influence on the LCOEs. This study represents a starting point for defining possible scenarios in studies of future national energy system or transmission grid expansion planning, which for the first time consider completely energy autonomous municipalities. |
| Keywords: | Energy autonomy,renewable energy,geothermal power generation,electric vehicles,vehicle-to-grid,mixed integer linear programming,regression analysis |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:40&r=all |
| By: | Raul Bajo Buenestado (University of Navarra) |
| Abstract: | A number of countries in Sub-Saharan Africa have recently deployed billions of dollars to improve their electricity infrastructure. However, aggregate data shows that the relative number of households with an electricity connection at home has barely increased. In this paper we study the role of blackouts to partially explain why there have been relatively few additional households with electricity access despite the increase in electrification expenditure. Using geo-localized survey data from Kenya, we find that households that live in neighborhoods in which power outages are relatively more frequent are (at least) about 6%-9% less likely to have electricity at home. We also find that households that have electricity access but which experience frequent power outages are also less likely to purchase electrical appliances. |
| Keywords: | Energy poverty, Electricity access, Electrification rates, Sub-Saharan Africa |
| JEL: | L94 O13 Q41 Q48 |
| Date: | 2020–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:una:unccee:wp0120&r=all |
| By: | Mendez Ramos,Fabian |
| Abstract: | Dutch Disease is a condition in which a sudden increase of resource wealth from an extractive sector (such as oil, gas, coal, or mining) undermines other areas of the economy (such as agriculture, manufacturing, or tradeable services), shrinking them while spurring an appreciation in the real exchange rate. Although this may have some positive effects in the short run, Dutch Disease episodes can potentially lead to sectoral concentration and lower economic growth in the long run. This policy brief takes a systematic look at this macroeconomic phenomenon, collects evidence for 83 countries from 1998 to 2017, and summarizes policies that aim to prevent or mitigate Dutch Disease and some of its effects. A long-term perspective to prevent excessive dependence on natural resources and promote broad-based growth should include improvements in institutional governance of natural resource wealth, development of the financial sector to provide risk management products, and diversification of the economy through selective taxes and provision of public goods. |
| Keywords: | Economic Development,Energy Demand,Energy and Mining,Energy and Environment,Global Environment,Economic Growth,Economic Theory&Research,Industrial Economics,Coastal and Marine Resources,Energy and Natural Resources |
| Date: | 2020–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbkrpb:147609&r=all |
| By: | Nathaly Rivera (University of Alaska Anchorage); Scott Loveridge (Michigan State University) |
| Abstract: | We derive causal property value impacts of the coal-to-gas fuel switching conversion implemented by several power plants in the United States. We use an extensive dataset of property transactions around the country and adopt several spatial difference-in-difference approaches that use records of residential property transactions of homes with wind exposure and proximity to the switching plants before and after the switch. A triple-differences control function estimator using coal-fired plants that did not innovate strengthens these estimations. Our results indicate that the shutdown of coal-fired generators increases property values of downwind homes by 15% in the immediate vicinity of fuel-switching plants ( |
| Keywords: | Fossil Fuels, Fuel Switching, Environmental Quality, Housing Market, Environmental Valuation, Hedonic Models |
| JEL: | C7 C9 D7 Q2 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:ala:wpaper:2020-01&r=all |
| By: | Christiane Baumeister; Dimitris Korobilis; Thomas K. Lee |
| Abstract: | This paper evaluates alternative indicators of global economic activity and other market fundamentals in terms of their usefulness for forecasting real oil prices and global petroleum consumption. We find that world industrial production is one of the most useful indicators that has been proposed in the literature. However, by combining measures from a number of different sources we can do even better. Our analysis results in a new index of global economic conditions and new measures for assessing future tightness of energy demand and expected oil price pressures. |
| JEL: | C11 C32 C52 Q41 Q47 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27001&r=all |
| By: | Weinand, Jann; Scheller, Fabian Johannes; McKenna, Russell |
| Abstract: | Research attention on decentralized autonomous energy systems has increased exponentially in the past three decades, as demonstrated by the absolute number of publications and the share of these studies in the corpus of energy system modelling literature. This paper shows the status quo and future modelling needs for research on local autonomous energy systems. A total of 359 studies are roughly investigated, of which a subset of 123 in detail. The studies are assessed with respect to the characteristics of their methodology and applications, in order to derive common trends and insights. Most case studies apply to middle-income countries and only focus on the supply of electricity in the residential sector. Furthermore, many of the studies are comparable regarding objectives and applied methods. Local energy autonomy is associated with high costs, leading to levelized costs of electricity of 0.41 $/kWh on average. By analysing the studies, many improvements for future studies could be identified: the studies lack an analysis of the impact of autonomous energy systems on surrounding energy systems. In addition, the robust design of autonomous energy systems requires higher time resolutions and extreme conditions. Future research should also develop methodologies to consider local stakeholders and their preferences for energy systems. |
| Keywords: | Literature review,energy autonomy,off-grid systems,100% renewable,energy system analysis,levelized cost of electricty,municipality,remote area |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:41&r=all |
| By: | Bjørnskov, Christian (Aarhus University and) |
| Abstract: | Politicians and international organisations advocate for increased regulation and government control of industry in order to handle climate change and reduce overall greenhouse gas emissions. However, it remains an open question how economic freedom is associated with environmental damage and whether deregulation is harmful to the environment or incentivises the use of green technology. On one hand, more government control and regulation may force firms and individuals to reduce their emissions. On the other hand, more economic freedom is likely to enable innovation and the adoption of green technological development. In this paper, I therefore combine data on growth in greenhouse gas emissions and GDP per capita with the Fraser Institute’s Economic Freedom of the World indices in order to test if economic freedom affects emissions. I do so in the context of estimating a standard Environmental Kuznets Curve in which economic freedom can both reduce overall levels as well as shift the shape of the curve. The results suggest that economic freedom reduces greenhouse gas emissions but also shifts the top point of the Kuznets Curve to the left. Part of this effect may be due to the effect of economic freedom on the adoption of renewable energy. |
| Keywords: | Economic freedom; Environmental performance; Greenhouse gases; Kuznets Curves |
| JEL: | H23 O31 P16 Q55 |
| Date: | 2020–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1331&r=all |
| By: | Pedro V Hernandez Serrano; Amrapali Zaveri |
| Abstract: | The issue of climate change has become increasingly noteworthy in the past years, the transition towards a renewable energy system is a priority in the transition to a sustainable society. In this document, we explore the definition of green energy transition, how it is reached, and what are the driven factors to achieve it. To answer that firstly, we have conducted a literature review discovering definitions from different disciplines, secondly, gathering the key factors that are drivers for energy transition, finally, an analysis of the factors is conducted within the context of European Union data. Preliminary results have shown that household net income and governmental legal actions related to environmental issues are potential candidates to predict energy transition within countries. With this research, we intend to spark new research directions in order to get a common social and scientific understanding of green energy transition. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2004.10562&r=all |
| By: | Syed Jawad Hussain Shahzad (Montpellier Business School, Montpellier, France; South Ural State University, Chelyabinsk, Russian Federation); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Riza Demirer (Department of Economics and Finance, Southern Illinois University Edwardsville, Edwardsville, IL 62026-1102, USA); Christian Pierdzioch (Department of Economics, Helmut Schmidt University, Holstenhofweg 85, P.O.B. 700822, 22008 Hamburg, Germany) |
| Abstract: | Using high-frequency (daily) data on macroeconomic uncertainties and the partial cross-quantilogram approach, we examine the directional predictability of disentangled oil-price-shocks for the entire conditional distribution of uncertainties of five advanced economies (Canada, Euro Area, Japan, the United Kingdom, and the United States). Our results show that oil-demand, supply, and financial risk-related shocks can predict the future path of uncertainty; however, the predictive relationship is contingent on the initial level of macroeconomic uncertainty and the size of the shocks. Our results suggest that macroeconomic uncertainty is indeed predictable at high frequency, and that oil-price-shocks capture valuable predictive information regarding the future path of macroeconomic uncertainties. |
| Keywords: | Oil shocks, uncertainty, partial cross-quantilograms, directional predictability, developed economies |
| JEL: | C22 C32 Q41 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202031&r=all |
| By: | Patrick Bolton; Marcin Kacperczyk |
| Abstract: | This paper explores whether carbon emissions affect the cross-section of U.S. stock returns. We find that stocks of firms with higher total CO2 emissions (and changes in emissions) earn higher returns, after controlling for size, book-to-market, momentum, and other factors that predict returns. We cannot explain this carbon premium through differences in unexpected profitability or other known risk factors. We also find that institutional investors implement exclusionary screening based on direct emission intensity in a few salient industries. Overall, our results are consistent with an interpretation that investors are already demanding compensation for their exposure to carbon emission risk. |
| JEL: | G12 H23 Q54 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26968&r=all |
| By: | World Bank Group |
| Keywords: | Environment - Air Quality & Clean Air Environment - Climate Change and Environment Environment - Coastal and Marine Environment Environment - Environment and Energy Efficiency Environment - Environmental Economics & Policies Environment - Environmental Protection Environment - Natural Resources Management Environment - Pollution Management & Control Environment - Sustainable Land Management Environment - Water Resources Management |
| Date: | 2019–05 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:31643&r=all |
| By: | Kendall, Alissa; Harvey, John; Butt, Ali A.; Lozano, Mark T.; Saboori, Arash; Kim, Changmo |
| Abstract: | Local governments have steadily increased their initiative to address global climate change, and many present their proposed strategies through climate action plans (CAPs). This study conducts a literature review on current local approaches to greenhouse gas (GHG) reduction strategies by assessing CAPs in California and presents common strategies in the transportation sector along with useful tools. One identified limitation of many CAPs is the omission of quantitative economic cost and emissions data for decision-making on the basis of cost-effectiveness. Therefore, this study proposes a framework for comparing strategies based on their life cycle emissions mitigation potential and costs. The results data can be presented in a marginal abatement cost curve (MACC) to allow for side-by-side comparison of considered strategies. Researchers partnered with Yolo and Unincorporated Los Angeles Counties to analyze 7 strategies in the transportation and energy sectors (five and two, respectively). A MACC was subsequently developed for each county. Applying the life cycle approach revealed strategies that had net cost savings over their life cycle, indicating there are opportunities for reducing emissions and costs. The MACC also revealed that some emissions reduction strategies in fact increased emissions on a life cycle basis. Applying the MACC framework to two case study jurisdictions illustrated both the feasibility and challenges of including quantitative analysis in their decision-making process. An additional barrier to using the MACC framework in the context of CAPs, is the mismatch between a life cycle and annual accounting basis for GHG emissions. Future work could explore more efficient data collection, alternative scopes of emissions for reporting, and environmental justice concerns. View the NCST Project Webpage |
| Keywords: | Engineering, Law, Greenhouse gas reduction, climate action plan, life cycle assessment, local governments, marginal abatement curve |
| Date: | 2020–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt4pp80768&r=all |
| By: | Sina J. Ogede (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Emmanuel O. George (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Ibrahim A. Adekunle (Olabisi Onabanjo University, Ago-Iwoye, Nigeria) |
| Abstract: | A range of explanations had been offered for the apparent change in oil price-inflation relationship outcomes ranging from the possible use of alternate energy sources, change in the structure of output regarding fewer oil intensive sectors and the role of fiscal and monetary in the affected oil-exporting countries. These changes had drawn the attention of stakeholders, government and the society at large to the anecdotal relationship among oil price volatility, inflation, and output in Africa oil-exporting countries. This study leans empirical credence to the impact of oil price volatility on inflation and economic performance in the Africa oil-exporting countries from 1995 through 2017. We employed the Pool Mean Group estimation procedure with the inference drawn at a 5% level of significance. We found that oil price volatility had a negative and significant effect on inflation in Africa oil-exporting countries. The study concluded that oil price volatility had a substantial impact on inflation in the Africa oil-exporting countries. The study, therefore, recommended that Africa oil-exporting countries should adopt precautionary measures to monitor inflation potentials due to different responses of inflation to positive and negative oil price shocks. |
| Keywords: | Oil Price Volatility; Inflation; Growth Outcomes; Pool Mean Group; Africa. |
| JEL: | C33 O55 Q41 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:20/020&r=all |
| By: | Hanna Bartoszewicz-Burczy; Rupert Baumgartner (University of Graz); Tina Fawcett; Morgane Fritz (La Rochelle Business School); Gavin Killip; Tamara Valladolid; Christian Violi |
| Abstract: | Improvement of energy efficiency may, in many ways, be beneficial for the economy and society. Energy efficiency programs, however, are often assessed based on energy savings only, without considering the socioeconomic benefits. Therefore, the entire benefit from energy efficiency in national economies and in the global dimension is significantly underappreciated. The basic aim of this paper is to demonstrate the multiple benefits from improving energy efficiency and to analyse them based on selected case studies. |
| Date: | 2019–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02547232&r=all |
| By: | Mats Kröger; Sun Xi; Olga Chiappinelli; Marius Clemens; Nils May; Karsten Neuhoff; Jörn Richstein |
| Abstract: | Bereits während der Finanzkrise in den Jahren 2008/2009 wurde diskutiert, ob klimapolitische Maßnahmen kurzfristig die Produktion und Nachfrage stimulieren und so auch Teil von Konjunkturpaketen sein können. Obwohl politische Entscheidungsträger in einer Krise dazu tendieren, auf bewährte Mittel zu setzen, wurden damals weltweit klimafreundliche Komponenten in die nationalen Konjunkturpakete integriert. Die Erfahrungen der vergangenen Krise zeigen, dass eine solche klimaorientierte Konjunkturpolitik nicht nur kurzfristig zu Wirtschaftswachstum und Arbeitsplätzen führt, sondern auch die Grundlage für langfristige Innovationen und eine klimafreundliche wirtschaftliche Entwicklung schafft. Etwa durch die Einführung von Differenzverträgen für CO2-arme Industrieprozesse und für erneuerbare Energien und Green Public Procurement können Regierungen sicherstellen, dass ihre klimapolitischen Impulse eine transformative Wirkung entfalten. Auch in der Corona-Krise können „grüne Stimuli“ einen wichtigen Beitrag zur Erholung der Wirtschaft leisten |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwakt:39de&r=all |
| By: | John J. García-Rendón; Alejandro Gutiérrez Gómez; Luisa Vargas Tobón; Hermilson Velásquez Ceballos |
| Abstract: | Las redes inteligentes tienen hoy un papel preponderante en el debate internacional acerca del diseño y la regulación de los mercados eléctricos. Este artículo analiza los potenciales efectos de la implementación de un mecanismo de respuesta de la demanda en Colombia, con características similares al utilizado en el mercado de PJM. Usando series de tiempo y controlando por la alta volatilidad que se presenta en el precio de corto plazo (precio de bolsa), estimamos que tal mecanismo habría logrado significantes ahorros a los consumidores. Por ejemplo, si el mecanismo de respuesta de la demanda hubiera sido implementado durante 2015, el precio de bolsa en horas pico podría haber sido un 30 % menor y los consumidores habrían ahorrado aproximadamente COP 99 000 millones. |
| Keywords: | Respuesta de la demanda, Arimax-ARCH, beneficios económicos, Colombia. |
| Date: | 2019–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:col:000382:018088&r=all |
| By: | Juan Benavides; Sergio Cabrales |
| Abstract: | El mercado de gas natural de Colombia tiene numerosas fricciones, complejidades y fallas de mercado y regulatorias (escaso número de actores en producción, integración vertical en diferentes mercados, ausencia de un mercado spot, mercado de contratos ilíquidos en producción y de transporte, ausencia de instalaciones de almacenamiento, reservas que se desarrollan de manera aleatoria y gradual, expansión del transporte por demanda) que influyen de manera poderosa en su evolución. |
| Keywords: | Mercado de Gas Natural, Gas Natural, Colombia |
| JEL: | L95 |
| Date: | 2020–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:col:000124:018135&r=all |
| By: | Klaudijo Klaser; Lorenzo Sacconi; Marco Faillo |
| Abstract: | Many actions we take today will show some of their consequences in the future. Therefore future generations, although they cannot have a real voice, should be considered as direct stakeholders of some of our present decisions. As far as this intertemporal misalignment between actions and outcomes is concerned, climate change is the most evident example we have of negative externality towards the future. This paper looks at the climate change problem and the related international agreements on the reduction of greenhouse gas emission through the social contract perspective.. We apply John Rawls’s veil of ignorance decision-making model within an experimental setting. In particular, we implement a sequential group dictator game where generations (groups of players) are located on a chain representing the time line. The (laboratory) veil of ignorance induces a fair ex-ante perspective regarding the distribution of resources between generations, however ex-post compliance to the agreement remains an open issue. |
| Keywords: | Experimental Economics, Climate Change, Intergenerational Allocation of Resources, Veil of Ignorance, Social Contract Theory |
| JEL: | D63 D64 F64 Q54 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:trn:utwpce:2003&r=all |
| By: | Wei Wei; Asger Lunde |
| Abstract: | We propose a multi-factor model and an estimation method based on particle MCMC to identify risk factors in electricity prices. Our model identifies long-run prices, shortrun deviations, and spikes as three main risk factors in electricity spot prices. Under our model, different risk factors have distinct impacts on futures prices and can carry different risk premia. We generalize the Fama-French regressions to analyze properties of true risk premia. We show that model specification plays an important role in detecting time varying risk premia. Using spot and futures prices in the Germany/Austria market, we demonstrate that our proposed model surpasses alternative models that have less risk factors in forecasting spot prices and in detecting time varying risk premia. |
| Keywords: | Risk factors, risk premia, futures, particle filter, MCMC. |
| JEL: | C51 G13 Q4 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:msh:ebswps:2020-10&r=all |
| By: | Ivan Faiella (Bank of Italy); Luciano Lavecchia (Bank of Italy) |
| Abstract: | This article presents a first insight on the carbon content of business loans in Italy, using three different methods to identify the sectors more exposed to transition risks. According to our estimates, the loans’ carbon footprint of Italian banks is small compared to other European peers and the outstanding loans exposed to transition risk can be estimated in a range between 37 and 53 percent of total loans as of 2018 data, according to the methodology used. This information can be used as a starting point to evaluate, within a climate-scenario framework, how different climate policies influence the stability of the banking sector |
| Keywords: | climate change, financial stability, climate stress test, transition risk |
| JEL: | Q54 G21 G28 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_557_20&r=all |
| By: | Andree,Bo Pieter Johannes |
| Abstract: | The fast spread of severe acute respiratory syndrome coronavirus 2 has resulted in the emergence of several hot-spots around the world. Several of these are located in areas associated with high levels of air pollution. This study investigates the relationship between exposure to particulate matter and COVID-19 incidence in 355 municipalities in the Netherlands. The results show that atmospheric particulate matter with diameter less than 2.5 is a highly significant predictor of the number of confirmed COVID-19 cases and related hospital admissions. The estimates suggest that expected COVID-19 cases increase by nearly 100 percent when pollution concentrations increase by 20 percent. The association between air pollution and case incidence is robust in the presence of data on health-related preconditions, proxies for symptom severity, and demographic control variables. The results are obtained with ground-measurements and satellite-derived measures of atmospheric particulate matter as well as COVID-19 data from alternative dates. The findings call for further investigation into the association between air pollution and SARS-CoV-2 infection risk. If particulate matter plays a significant role in COVID-19 incidence, it has strong implications for the mitigation strategies required to prevent spreading. |
| Date: | 2020–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:9221&r=all |
| By: | Lengwiler, Yvan (University of Basel) |
| Abstract: | The COVID-19 pandemic and the partial shutdown of the economy has highlighted the lack of measurements of economic activity that are available with a short lag and at high frequency. The consumption of electricity is a candidate for such a proxy. |
| Keywords: | COVID-19, electricity, seasonal adjustment, weather data |
| JEL: | C50 E01 |
| Date: | 2020–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2020/07&r=all |
| By: | Michaël Rubens |
| Abstract: | How do managers affect firm performance? A key difference between managers and other production inputs is that they choose the production function. I empirically distinguish between the direct effects of managers as inputs in the production process, which is the standard way to think about management, and their indirect effects as decision-makers of the production technology. I use this model to understand how the introduction of mining engineering degrees in the U.S.A. changed coal mining productivity. I find that conditional on all inputs and technology choices, mines managed by managers with mining degrees were not more productive than other mines. Mining college graduates did, however, tend to select better technologies, which in turn increased productivity by 29% on average. The main mechanism behind these better choices was that mining college graduates had superior ex-ante knowledge about the returns to various new technologies, while other managers had to acquire this information through trial-and-error. |
| Keywords: | Management, Productivity, Technology Adoption, Higher Education |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:653398&r=all |