nep-ene New Economics Papers
on Energy Economics
Issue of 2020‒06‒08
forty-six papers chosen by
Roger Fouquet
London School of Economics

  1. How sustainable environments have reduced the diffusion of coronavirus disease 2019: the interaction between spread of COVID-19 infection, polluting industrialization, wind (renewable) energy By Mario Coccia
  2. Modeling Grid-Friendly Clean Energy Communities and Induced Intra-Community Cash Flows By Crump, Robert; Madlener, Reinhard
  3. Changing Energy Supply Economics in Saudi Arabia in the Context of Global Transitions By KAPSARC, King Abdullah Petroleum Studies and Research Center
  4. The Effects of Wind Power on Electricity Markets: An Evaluation Using the Swedish Electricity Market Data By Hu, Xiao; Jaraitė , Jūratė; Kažukauskas , Andrius
  5. Impact of Energy Mix on Nitrous Oxide Emissions: An Environmental Kuznets Curve approach for APEC countries By Sinha, Avik; Sengupta, Tuhin
  6. Hospitality Industry 4.0 and Climate Change By Adel Ben Youssef; Adelina Zeqiri
  7. Instrument choice in the case of multiple externalities By Nikula Harri
  8. The Political Economy of Negotiating International Carbon Markets By Maria Arvaniti; Wolfgang Habla
  9. The political economy of negotiating international carbon markets By Arvaniti, Maria; Habla, Wolfgang
  10. Nuclear Energy of Turkey in the context of the Russian experience. By Ketenci, Natalya
  11. Impacts of subsidized renewable electricity generation on spot market prices in Germany : Evidence from a GARCH model with panel data By Thao Pham; Killian Lemoine
  12. Investing in power grid infrastructure as a flexibility option: A DSGE assessment for Germany By Schreiner, Lena; Madlener, Reinhard
  13. Environmental Kuznets Curve for CO2 emission: A survey of empirical literature By Shahbaz, Muhammad; Sinha, Avik
  14. Voluntary opt-in provision and instrument choice in environmental regulation By Nikula Harri
  15. Energy Limits to the Gross Domestic Product on Earth By Andreas M. Hein; Jean-Baptiste Rudelle
  16. Exploring the links between total factor productivity, final-to-useful exergy efficiency, and economic growth: Case study Portugal 1960-2014 By Santos, João; Borges, Afonso; Domingos, Tiago
  17. Carbon capture usage and storage with scale-up : energy finance through bricolage deploying the co-integration methodology By Bhumika Gupta; Salil K. Sen
  18. Carbon pricing of international transport fuels: Impacts on carbon emissions and trade activity By Mundaca, Gabriela; Strand, Jon
  19. The relationship between air quality, wealth, and COVID-19 diffusion and mortality across countries By Roberto Antonietti; Paolo Falbo; Fulvio Fontini
  20. The Kuznets Curve for the Sustainable Environment and Economic Growth By Mishra, Mukesh Kumar
  21. Entry, exit, and instrument choice in environmental regulation By Nikula Harri
  22. Health Shocks under Hospital Capacity Constraint: Evidence from Air Pollution in Sao Paulo, Brazil By Guidetti, Bruna; Pereda, Paula; Severnini, Edson R.
  23. Analyzing the Effects of Saudi Arabia’s Economic Reforms Using a Dynamic Stochastic General Equilibrium Model By Jorge Blazquez; Marzio Galeotti; Baltasar Manzano; Axel Pierru; Shreekar Pradhan
  24. Política de conteúdo local e incentivos financeiros no mercado de energia eólica no Brasil By Rennkamp, Britta; Westin, Fernanda Fortes; Grottera, Carolina
  25. Risk attitude and air pollution: Evidence from chess* By Joris Klingen; Jos van Ommeren
  26. Evaluación del impacto económico de las interrupciones en el transporte de gas natural en el Perú By Vásquez Cordano, Arturo Leonardo
  27. Managing spatial sustainability trade-offs: The case of wind power By Lehmann, Paul; Ammermann, Kathrin; Gawel, Erik; Geiger, Charlotte; Hauck, Jennifer; Heilmann, Jörg; Meier, Jan-Niklas; Ponitka, Jens; Schicketanz, Sven; Stemmer, Boris; Tafarte, Philip; Thrän, Daniela; Wolfram, Elisabeth
  28. The dynamic effects of globalization process in analysing N-shaped tourism led growth hypothesis By Balsalobre-Lorente, Daniel; Driha, Oana M.; Sinha, Avik
  29. Determinants of Economic Growth in Turkey in the Presence of Structural Breaks By Ketenci, Natalya; Aydoğan, Ebru Tomris
  30. From rescue to recovery, to transformation and growth: building a better world after COVID-19 By Bhattacharya, Amar; Stern, Nicholas
  31. Combined transport in Europe: Scenario-based projections of emission saving potentials By Jahn, Malte; Schumacher, Paul; Wedemeier, Jan; Wolf, André
  32. The consequences of treating electricity as a right By Burgess, Robin; Greenstone, Michael; Ryan, Nicholas; Sudarshan, Anant
  33. The information value of energy labels: Evidence from the Dutch residential housing market By Lu Zhang; Lennart Stangenberg; Sjors van Wickeren
  34. Does Electricity Drive Structural Transformation? Evidence from the United States By Gaggl, Paul; Gray, Rowena; Marinescu, Ioana E.; Morin, Miguel
  35. Understanding corporate social responsibility of the corporate sector to Sustainable Development Goal for energy in Nepal By Bista, Raghu
  36. La transition sociale-écologique dans cinq villes françaises By Éloi Laurent
  37. Analysis of the cost of infrastructure failures in a developing economy: The case of the electricity sector in Nigeria By Adeola Adenikinju
  38. Dekarbonisierung bis zum Jahr 2050? Klimapolitische Maßnahmen und Energieprognosen für Deutschland, Österreich und die Schweiz By Frondel, Manuel; Thomas, Tobias
  39. What policies for greening the crisis response and economic recovery?: Lessons learned from past green stimulus measures and implications for the COVID-19 crisis By Shardul Agrawala; Damien Dussaux; Norbert Monti
  40. The Forward Premium in Electricity Markets: An Experimental Study By Silvester Van Koten
  41. Environmental pollution and economic growth elasticities of maritime and air transportations in Iran By Mohamad Taghvaee, Vahid; Agheli, Lotfali; Assari Arani, Abbas; Nodehi, Mehrab; Khodaparast Shirazi, Jalil
  42. Auswirkungen einer CO2-Bepreisung auf die Verbraucherpreisinflation By Nöh, Lukas; Rutkowski, Felix; Schwarz, Milena
  43. Exhaustible resources and classical theory By Bidard, Christian; Erreygers, Guido
  44. Is climate change induced by humans? The impact of the gap in perceptions on cooperation By Junichi Hirose; Koji Kotani; Yoshinori Nakagawa
  45. The Causal Effect of Education on Climate Literacy and Pro-Environmental Behaviours: Evidence from a Nationwide Natural Experiment By Powdthavee, Nattavudh
  46. Deregulation in a Time of Pandemic: Does Pollution Increase Coronavirus Cases or Deaths? By Persico, Claudia; Johnson, Kathryn R.

  1. By: Mario Coccia
    Abstract: This study endeavors to explain the relation between air pollution and particulate compounds emissions, wind resources and energy, and the diffusion of COVID-19 infection to provide insights of sustainable policy to prevent future epidemics. The statistical analysis here focuses on case study of Italy, one of the countries to experience a rapid increase in confirmed cases and deaths. Results reveal two main findings: 1) cities in regions with high wind speed and a high wind energy production in MW have a lower number of infected individuals of COVID-19 infection and total deaths; 2) cities located in hinterland zones (mostly those bordering large urban conurbations) with high polluting industrialization, low wind speed and less cleaner production have a greater number of infected individuals and total deaths. Hence, cities with pollution industrialization and low renewable energy have also to consider low wind speed and other climatological factors that can increase stagnation of the air in the atmosphere with potential problems for public health in the presence of viral agents. Results here suggest that current pandemic of Coronavirus disease and future epidemics similar to COVID-19 infection cannot be solved only with research and practice of medicine, immunology and microbiology but also with a proactive strategy directed to interventions for a sustainable development. Overall, then, this study has to conclude that a strategy to prevent future epidemics similar to COVID-19 infection must also be based on sustainability science to support a higher level of renewable energy and cleaner production to reduce polluting industrialization and, as result, the factors determining the spread of coronavirus disease and other infections in society.
    Date: 2020–05
  2. By: Crump, Robert (RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))
    Abstract: In the context of decarbonizing the energy sector, energy communities play an increasingly important role. However, the German energy transition has reached a point where it is now necessary to look at electricity generation and consumption in a holistic, systemic manner. Building on the qualitative work of Gui and MacGill (2018), the present paper quantifies how the inception of different types of clean energy communities (CECs) changes the grid-friendliness of a community and how it induces intra-community cash flows. In detail, the paper creates three residential reference networks, representing a countryside, village, and suburb setting. To simulate the residential load, the model employs a behavior-based load profile generator. Moreover, it uses meteorological data to model the electricity generation via photovoltaic (PV) systems and wind energy converters (WECs). In the model, CECs can conduct four measures: improve the energy efficiency, buy PV systems in bulk, introduce peer-to-peer (P2P) trading, and install a WEC. The results indicate that by conducting only a single measure, CECs often create a tradeoff in the community’s grid-friendliness. In contrast, combining a measure with a second measure nearly always improves the community’s gridfriendliness. This shows that the measures complement each other well from a grid-friendliness perspective. With regard to intra-community cash flows, the paper estimates a realistic volume for local P2P trading as well as its upper bound. In this regard, the extent of the realistic cash flow alone may not be enough to justify the purchase of P2P-enabling infrastructure. From a grid perspective, the paper highlights the importance of exploiting the complementarity of CEC measures as well as the necessity to provide CECs with access to sufficient funding.
    Keywords: Citizen community; Microgrid; Peer-to-peer trading; Germany
    JEL: C65 D29 D71 O35 Q42
    Date: 2019–12–01
  3. By: KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center)
    Abstract: Many factors, local and global, will impact Saudi Arabia’s electricity sector and energy markets. The Kingdom has committed to deploying a significant share of renewable energy by 2030 and is considering plans to add nuclear power to its energy mix. At the same time, Saudi Arabia is investing to increase its non-associated gas supply. Globally, oil prices and energy dynamics will be affected by many climate-related initiatives and regulations, such as the new International Maritime Organization (IMO) rules that impose switching to low-sulfur fuels to reduce sulfur emissions by over 80%. Accurate supply modeling also requires understanding and projecting demand. The Kingdom has only recently embarked on its energy price reform journey, and initiatives related to industry electrification, distributed generation deployment, and energy efficiency will greatly affect future energy consumption.
    Keywords: Demand, Energy Mix, Energy Policy, Renewable Energy, Supply
    Date: 2020–05–07
  4. By: Hu, Xiao (CERE - the Center for Environmental and Resource Economics); Jaraitė , Jūratė (Faculty of Economics and Business Administration at Vilnius University, School of Business, Economics and Statistics at Umeå University and Center for Environmental and Resource Economics (CERE) at Umeå); Kažukauskas , Andrius (Faculty of Economics and Business Administration at Vilnius University, School of Business, Economics and Statistics at Umeå University and Center for Environmental and Resource Economics (CERE) at Umeå)
    Abstract: We investigate the process of electricity price formation in the Swedish intraday market, given a large share of wind power in the Swedish electricity system. According to Karanfil and Li’s (2017) approach, if the intraday market is efficient and liquid, with large shares of intermittent electricity in the entire electricity system, the intraday price should send signals based on scarcity pricing for balancing power. Based on this theory, we analyze the Swedish electricity market data for the period 2015–2018 and find that the Swedish intraday market, despite its small trading volumes, is functioning properly. In particular, our results show that intraday price premia respond in an expected way to wind power forecast errors and other imbalances resulting from either supply or demand sides of the electricity market. The results of wind power forecast errors hold for central and southern Sweden, but not for northern Sweden where the share of wind power production is still very small. In addition, we find no effect of unplanned nuclear power plant outages on intraday price premia.
    Keywords: day-ahead market; electricity; forecast errors; intraday market; Sweden; wind power
    JEL: P18 Q40 Q41 Q42
    Date: 2020–05–26
  5. By: Sinha, Avik; Sengupta, Tuhin
    Abstract: There is a limited number of studies on the estimation of Environmental Kuznets Curve (EKC) hypothesis for Nitrous Oxide (N2O) emissions, though it is one of the most harmful greenhouse gases (GHGs) present in ambient atmosphere. In the wake of industrialization, it is necessary to understand the impact of energy consumption pattern on N2O emissions and revise the energy policies accordingly. In this study, we have analysed the impact of renewable and fossil fuel energy consumptions on N2O emissions for APEC countries over the period of 1990-2015, and the analysis has been carried out following the EKC hypothesis framework. The results obtained from the study indicate the efficacy of the renewable energy solutions in having positive impact on environmental quality by helping to reduce the level of N2O emissions. The policy implications derived the results are designed keeping the objectives of Sustainable Development Goals (SDGs) in mind, so that the energy policies can bring forth sustainability in the economic systems in these nations.
    Keywords: Renewable Energy; N2O Emissions; APEC Countries; SDG; sustainability
    JEL: Q5 Q53
    Date: 2019
  6. By: Adel Ben Youssef (Université Côte d'Azur, France; GREDEG CNRS); Adelina Zeqiri (University of Prishtina "Hasan Prishtina")
    Abstract: This paper investigates the main principles supporting hospitality industry 4.0, the effects of hospitality industry activities on climate change, and the ways that hospitality industry 4.0 might contribute to combating climate change. In the context of the focus of contemporary industries on sustainable development, the fourth industrial revolution or industry 4.0 can be considered an enabler of sustainability. Among those industries considered to be major contributors to climate change is the hospitality industry which has increased research interest in this sector. The hospitality industry includes the travel and tourism, accommodation and food and beverages sectors all of which are contributing in different ways to greenhouse gas (GHG) emissions. The introduction of industry 4.0 technologies could help hospitality industry to reduce its effects on climate change through increased energy efficiency, recycling and re-use of water, and reduced food waste. The notion of circular hospitality involving reuse, recycling, redesign, replacement and rethinking strategies, and use of virtual reality to reduce transport and travel are enabled by industry 4.0 technologies. Hospitality industry 4.0 technologies offer new opportunities for enhancing sustainable development and reducing GHG emissions through the use of environmentally friendly approaches, to achieve the Paris agreement objectives.
    Keywords: Hospitality, Hospitality Industry 4.0, Climate Change, Circular Hospitality, Sustainability, Energy Efficiency
    JEL: Q54 L83 O33
    Date: 2020–05
  7. By: Nikula Harri (Faculty of Management and Business, Tampere University)
    Abstract: We study market-based regulation in a polluting industry that produces two externalities at the same time. There is a negative externality (emissions) to which every firm in the industry contributes, and a positive externality (technological spillover), so that an additional application of green technology becomes easier as the number of appliers increases. An optimal policy is shown to consist of a uniform emission price across polluting firms and a subsidy to early users of green technology. We also show that the presence of the second externality strongly affects the instrument choice under uncertainty between taxes and tradable permits, and that the influence depends on the design of the instruments. More specifically, it depends on whether early users of green technology are subsidized or not.
    Keywords: Green production, emission taxation, internalizing externalities, spillover effect, tradable emission permits, uncertainty
    JEL: D62 D81 H23 Q58
    Date: 2020–05
  8. By: Maria Arvaniti (Center of Economic Research (CER-ETH), ETH Zurich, Switzerland); Wolfgang Habla (Department of Environmental and Resource Economics, Environmental Management, ZEW – Leibniz Centre for European Economic Research, L7, 1, 68161 Mannheim, Germany)
    Abstract: International carbon markets are frequently propagated as an efficient instrument for reducing CO2 emissions. We argue that such markets, despite their desirable efficiency properties, might not be in the best interest of governments who are guided by strategic considerations in negotiations. We identify the circumstances under which governments benefit or are harmed by cooperation in the form of an international market. Our results challenge the conventional wisdom that an international market is most beneficial for participating countries when they have vastly diverging marginal abatement costs; rather, it may be more promising to negotiate agreements with non-tradable emissions caps.
    Keywords: cooperative climate policy, political economy, emissions trading, linking of permit markets, strategic delegation, strategic voting
    JEL: D72 H23 H41 Q54 Q58
    Date: 2020–05
  9. By: Arvaniti, Maria; Habla, Wolfgang
    Abstract: International carbon markets are frequently propagated as an efficient instrument for reducing CO2 emissions. We argue that such markets, despite their desirable efficiency properties, might not be in the best interest of governments who are guided by strategic considerations in negotiations. We identify the circumstances under which governments benefit or are harmed by cooperation in the form of an international market. Our results challenge the conventional wisdom that an international market is most beneficial for participating countries when they have vastly diverging marginal abatement costs; rather, it may be more promising to negotiate agreements with non-tradable emissions caps.
    Keywords: cooperative climate policy,political economy,emissions trading,linking of permit markets,strategic delegation,strategic voting
    JEL: D72 H23 H41 Q54 Q58
    Date: 2020
  10. By: Ketenci, Natalya
    Abstract: Nuclear energy has become one of the widely discussed topics in Turkey due to the controversial points of view. Turkey is new to nuclear power; the construction of the first nuclear reactor started in April of 2018. Production of electricity in Turkey is highly dependent on imported energy sources. Continuously increasing energy prices and foreign energy supply reduce national energy security and undermine the sustainable economic growth of the country, whose exports heavily depend on foreign energy sources. Therefore; one of the solutions to decrease dependence on foreign energy sources for such an industrial country, as Turkey, is to produce nuclear energy. Opinions of specialists and the population are divided in controversial groups, where advantages and disadvantages of nuclear power oppose each other. This chapter analyses the usage of nuclear power in the world and reasons for countries, which have reduced or vice versa increased the implementation of nuclear energy. The Russian company conducts the construction of the first nuclear plant in Turkey, therefore history and experience of Russia in nuclear energy are analysed in this chapter. The discussion on benefits and weaknesses of Russian experiences and how they can be applied to new a Turkish nuclear industry conclude the chapter.
    Keywords: nuclear energy; Turkey; Russia
    JEL: Q37 Q43 Q5 Q50
    Date: 2019–12–15
  11. By: Thao Pham (LEDa - Laboratoire d'Economie de Dauphine - Université Paris Dauphine-PSL, REGARDS - Recherches en Économie Gestion AgroRessources Durabilité Santé- EA 6292 - URCA - Université de Reims Champagne-Ardenne); Killian Lemoine
    Abstract: Electricity generated by renewable energy sources creates a downward pressure on wholesale prices through-the so-called "merit order effect". This effect tends to lower average power prices and average market revenue that renewables producers should have received, making integration costs of renewables very high at large penetration rate. It is therefore crucial to determine the amplitude of this merit order effect particularly in the context of increasing burden of renewable support policies borne by final consumers. Using hourly data for the period 2009-2012 in German electricity wholesale market for GARCH model under panel data framework, we find that wind and solar power generation injected into German electricity network during this period induces a decrease of electricity spot prices and a slight increase of their volatility. The model-based results suggest that the merit-order effect created by renewable production ranges from 3.86 to 8.34 €/MWh which implies to the annual volume of consumers' surplus from 1.89 to 3.92 billion euros. However this surplus has not been redistributed equally among different types of electricity consumers.
    Keywords: German electricity markets,Intermittent generation,Feed-in tariff,Merit-order effect,GARCH,panel data
    Date: 2020–05–08
  12. By: Schreiner, Lena (RWTH Aachen University); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN))
    Abstract: This paper provides an approach to incorporate planned investments in power grid infrastructure in Germany, which intend to provide the necessary flexibility to integrate large shares of variable renewable energy sources into the power system, into a dynamic stochastic equilibrium model. Since the investments’ economic impact remains unclear, this paper sheds light on two questions: Do power grid infrastructure investments in Germany have the potential to positively impact economic performance, particularly GDP and employment? Is power grid infrastructure investment an efficient way to provide flexibility to the electricity system? We find the potential for negative effects of power grid infrastructure investments on economic outcomes, which can, however, be mitigated by an adequate design of the investments and its framework conditions.
    Keywords: DSGE analysis; infrastructure; Germany; electric grid; energy transition; flexibility
    JEL: C68 E61 O13 P18 Q43 Q48 Q56
    Date: 2019–08–01
  13. By: Shahbaz, Muhammad; Sinha, Avik
    Abstract: This paper provides a survey of the empirical literature on Environmental Kuznets Curve (EKC) estimation of carbon dioxide (CO2) emissions over the period of 1991-2017. This survey categorizes the studies on the basis of single country and cross-country contexts. It has been hypothesized that the EKC is an inverted U-shaped association between economic growth and CO2 emissions. For both single country and cross-country contexts, the results of EKC estimation for CO2 emissions are inconclusive in nature. The reasons behind this discrepancy can be attributed to the choice of contexts, time period, explanatory variables, and methodological adaptation. The future studies in this context should not only consider new set of variables (e.g., corruption index, social indicators, political scenario, energy research and development expenditures, foreign capital inflows, happiness, population education structure, public investment towards alternate energy exploration, etc.), but also the dataset should be refined, so that the EKC estimation issues raised by Stern (2004) can be addressed.
    Keywords: Environmental Kuznets Curve; Carbon Emissions; Economic Growth
    JEL: Q5 Q53
    Date: 2019
  14. By: Nikula Harri (Faculty of Management and Business, Tampere University)
    Abstract: We study market-based instruments under incomplete participation. Incomplete participation means that the regulation does not cover all emitters that contribute to harmful damages. Our results show that a voluntary opt-in provision should always be incorporated into regulation under incomplete participation as the provision unambiguously increases expected social welfare. Incomplete participation also affects the choice between market-based instruments, tradable permits and environmental taxes, under uncertainty. The impact will depend on whether the voluntary provision is used or not. The voluntary participation does not unambiguously favor one of the instruments, but the advantage is case-specific.
    Keywords: Emission taxation, tradable emission permits, uncertainty, voluntary opt-in
    JEL: D62 D81 H23 Q58
    Date: 2020–05
  15. By: Andreas M. Hein; Jean-Baptiste Rudelle
    Abstract: Once carbon emission neutrality and other sustainability goals have been achieved, a widespread assumption is that economic growth at current rates can be sustained beyond the 21st century. However, even if we achieve these goals, this article shows that the overall size of Earth's global economy is facing an upper limit purely due to energy and thermodynamic factors. For that, we break down global warming into two components: the greenhouse gas effect and heat dissipation from energy consumption related to economic activities. For the temperature increase due to greenhouse gas emissions, we take 2 {\deg}C and 5 {\deg}C as our lower and upper bounds. For the warming effect of heat dissipation related to energy consumption, we use a simplified model for global warming and an extrapolation of the historical correlation between global gross domestic product (GDP) and primary energy production. Combining the two effects, we set the acceptable global warming temperature limit to 7 {\deg}C above pre-industrial levels. We develop four scenarios, based on the viability of large-scale deployment of carbon-neutral energy sources. Our results indicate that for a 2% annual GDP growth, the upper limit will be reached at best within a few centuries, even in favorable scenarios where new energy sources such as fusion power are deployed on a massive scale. We conclude that unless GDP can be largely decoupled from energy consumption, thermodynamics will put a hard cap on the size of Earth's economy. Further economic growth would necessarily require expanding economic activities into space.
    Date: 2020–05
  16. By: Santos, João; Borges, Afonso; Domingos, Tiago
    Abstract: Mainstream economic growth models downplay the role of energy, while attributing most of growth to an exogenous residual – total factor productivity (TFP). This makes them unsuitable to tackle the challenge of marrying sustainability and economic development targets. Meanwhile, research suggests that measuring energy at the stage where it’s actually productive (useful), and in exergy terms (in thermodynamics, the potential to do work), unlocks new insights concerning energy’s strong link with economic output. In this work we test for relationship linking TFP and final-to-useful (F-to-U) exergy efficiency, resorting to both observational and statistical methods (cointegration). Several models are considered, assessing the impact of: a) disaggregating capital inputs (i.e. buildings, stationary, non-stationary); b) quality-adjusting labour; c) disaggregating F-to-U exergy efficiency (stationary and non-stationary end-uses). Results for Portugal (1960-2014) show that TFP can be proxied by changes in F-to-U exergy efficiency, namely for stationary end-uses. This link is strengthened when disaggregate capital, and schooling-corrected labour measures are considered. When TFP is estimated as a function of F-to-U exergy efficiency, virtually all of long-term economic growth is explained by directly measurable capital, labour, and exergy efficiency in production. Resulting models provide satisfactory explanations of economic growth, founded on energy use and efficiency.
    Keywords: economic growth; total factor productivity; energy efficiency; useful exergy; aggregate production function; cointegration analysis
    JEL: C51 D24 O11 O13 O47 Q43
    Date: 2020–02–28
  17. By: Bhumika Gupta (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School, MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School); Salil K. Sen (MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School)
    Abstract: Recent studies surprisingly indicate that fossil fuels could constitute 81% of primary energy demand, to 2040, 60% would continue to be from coal. This could mean more greenhouse emissions. This paper addresses the research proposition that coal though black, yet, could be green with co-integration of carbon capture and storage (CCS) and carbon capture and usage (CCU). The incertitude surrounding the future of coal is a palpable and credible research gap. The other research chasm is the search of energy finance necessary to economically, societally and environmentally leverage the carbon removal. This issue is addressed as bricolage finance for optimal resource optimization. The bricolage supports societal entrepreneurialism that deploy funding sources from bottom-up developmental finance. The twin key outcomes here are: (i) Appropriately scaled-up, grassroots-sourced bricolage sustains the societal acceptance of CCS and CCU, (ii) enhances the environmental economics of coal-based thermal power plugged-in with CCU and CCS. The methodological essence of this approach is tri-trajectory literature review, that propose (i) technology-led CCU/CCS (ii) financial derivative based bricolage and (iii) economic recalibration through bottom-up approach for community-level buy-in. Practical application of this framework is probed with instances from less developed regions in Asia, Africa and Latin America. The data draws from published reports on coal-intensive habitats, particularly in developing countries. Pattern coefficients and reflective indicators were deployed to predict, monitor, and reorient support or opposition for CCS implementation.
    Keywords: Reflective Indicators,Pattern Coefficients,Energy Finance through Bricolage,Carbon Capture and Usage,Carbon Capture and Storage
    Date: 2019
  18. By: Mundaca, Gabriela; Strand, Jon
    Abstract: We study impacts of carbon pricing to international transport fuels on fuel consumption and carbon emissions, trade activity, focusing on sea freight which constitutes the most important international trade transport activity. We use the WITS global dataset for international trade for the years 2009-2017 to estimate the impacts of changes in the global average bunker fuel price on the weight times distance for goods transported and carbon emission from international shipping. We find quite strong but variable negative effects of fuel cost increases on weight times distance for traded goods, and on carbon emissions from sea freight, for the heaviest goods categories at the 6-digit HS levels of aggregation in global trade, with bunker-price elasticities ranging from -0.03 up to -0.52. Considering an increase in the bunker fuel price as a proxy for a fuel tax, our results then indicate substantial impacts of bunker fuel taxes on the volume of sea transport, on bunker fuel consumption, and on carbon emissions from the international shipping sector. Our results indicate that, for the current level of international trade, a global tax of $40 per ton CO2 tax will reduce carbon emissions from global shipping fleet by about 7% for the heaviest traded products; and by most so for goods with particularly high weight-to-value ratios such as fossil fuels and ores.
    Keywords: International Trade, shipping, carbon taxation, carbon emissions
    JEL: F1 F13 F18
    Date: 2020–03–19
  19. By: Roberto Antonietti (“Marco Fanno” Department of Economics and Management, University of Padova, Italy); Paolo Falbo (Department of Economics, University of Brescia, Italy); Fulvio Fontini (“Marco Fanno” Department of Economics and Management, University of Padova, Italy)
    Abstract: This study concerns the relationship between economic wealth, air quality and COVID-19 diffusion and mortality around the world. We show that the level of air quality, in terms of particulate (PM 2.5) concentrations, does not significantly contribute to explaining the diffusion of COVID-19 and the related mortality after accounting for socioeconomic factors, especially per capita GDP. This latter variable significantly correlates with the diffusion of COVID-10 and related mortality, and the result holds for different times when COVID-19 infections and deaths are counted. When we cluster countries by level of wealth, economic openness, macroeconomic structure, CO2 emissions, and climate conditions, we find that higher concentrations of PM 2.5 coincide with more infections and deaths, but only holds in high-income countries.
    Keywords: COVID-19, pollution, PM2.5, wealth, cross-country analysis
    JEL: I10 Q50 Q53
    Date: 2020–05
  20. By: Mishra, Mukesh Kumar
    Abstract: This paper examines different strategies for the protection of the global climate, the environment and Green Growth mechanism for natural resources and scrutinizes the extent to which they meet the transformative requirements of the Paris Climate Agreement and the 2030 Agenda. It analyses the interactions between relevant institutions of global and multi-level environmental governance. It focuses on the legitimacy of respective green mechanisms and their effects on ecosystems and human welfare. It requires that keeping in mind The Kuznets Curves Model Mechanism and reform further to develop the global economic governance system and restructure incentive systems at national level. Crises like COVID-19 show the urgency to promote necessary transformations for our society to survive in the 21st century. It can be a good reminder that in any breakdown, there is always a chance for breakthrough. Pollution and greenhouse gas emissions have fallen across continents as countries try to contain the spread of the new coronavirus. The green economy aims to achieve economic growth and development without an adverse effect on the environment. The environmental Kuznets curve (EKC) hypothesis explains the relationship between economic activity and environmental degradation. Therefore, environmental conservation policies, technological advancement and modern industrial policies are required to make the economic growth of the countries effective in reducing CO2 emissions. There is need for international collaboration among developing and developed countries for fostering green economy and sustainability. We need green growth because risks to development are rising as growth continues to erode natural capital, through the tools of Sustainable Development.
    Keywords: Sustainable Development,Green Economy,Green Growth,The Environmental Kuznets Curve
    JEL: Q56 Q57
    Date: 2020
  21. By: Nikula Harri (Faculty of Management and Business, Tampere University)
    Abstract: We study market-based regulation where a government tries to avoid excessive firm closures by providing reliefs from emission fees for incumbent firms. Regulation is asymmetric as only incumbents, not new entrants are subsidized by the payment reliefs. We ask whether this feature affects the choice between environmental taxes and tradable permits under uncertainty. We find a trade-off between tax-beneficial inefficiency effect and permit-beneficial volume effect. The latter effect arises as the free quotas makes the number of aggregate permits and the aggregate emissions to fluctuate in the quantity implementation. We show that the subsidization of incumbent firms does not unambiguously favor one of the instruments but the advantage depends on policy- and industry-specific factors.
    Keywords: Emission taxation, firm closure, environmental subsidies, tradable emission permits, uncertainty
    JEL: D62 D81 H23 Q58
    Date: 2020–05
  22. By: Guidetti, Bruna (University of Michigan); Pereda, Paula (University of Sao Paulo); Severnini, Edson R. (Carnegie Mellon University)
    Abstract: When a health shock hits a location, the healthcare infrastructure needs to be adjusted to meet the increased demand. This may be a challenge in developing countries because of limited hospital capacity. In this study, we examine the consequences of health shocks induced by air pollution in a megacity in the developing world: Sao Paulo, Brazil. Using daily data from 2015-2017, and an instrumental variable approach based on wind speed, we provide evidence that exposure to particulate matter (PM10) causes an increase in pediatric hospitalizations for respiratory diseases, which in turn leads to a decrease in hospital admissions for elective care – phimosis surgery and epilepsy-related procedures such as video-EEG (electroencephalograph) monitoring. Importantly, emergency procedures such as appendectomy and bone fracture repair are not affected. While strained Sao Paulo hospitals seem to absorb the increased demand induced by poor air quality, our results imply that the common practice of using health outcomes unrelated to pollution as "placebo tests" in studies on the effects of air pollution might be inadequate in settings with limited healthcare infrastructure. This is often the case in developing countries, where severe pollution is also ubiquitous, but also happens in deprived areas in the developed world.
    Keywords: air pollution, health outcomes, hospitalization for respiratory diseases and other causes, healthcare infrastructure, hospital capacity constraint
    JEL: I15 Q53 Q56 O13
    Date: 2020–05
  23. By: Jorge Blazquez; Marzio Galeotti; Baltasar Manzano; Axel Pierru; Shreekar Pradhan (King Abdullah Petroleum Studies and Research Center)
    Abstract: Saudi Arabia is the world’s second-largest holder of proved oil reserves and the second-largest producer of petroleum liquids. The country is the largest exporter of crude oil, with a share of 16% of total crude oil exports in 2017. Saudi Arabia’s economy is heavily oil dependent.
    Keywords: Cointegration, Economic activity, GDP, Nighttime Satellite data, Production Function
    Date: 2020–05–21
  24. By: Rennkamp, Britta; Westin, Fernanda Fortes; Grottera, Carolina
    Abstract: Este estudo analisa o desenvolvimento da indústria de energia eólica no Brasil, com foco especial em Requisitos de Conteúdo Local (RCL). Políticas de conteúdo local são incentivos que visam melhorar o desenvolvimento tecnológico e industrial, ao condicionar a entrada em determinado mercado à utilização de bens e serviços fabricados nacionalmente. O programa brasileiro criou empregos na fabricação, instalação, operação e manutenção de componentes, ao mesmo tempo em que alcançou preços de energia muito competitivos por meio de um sistema de leilões. Uma análise de conteúdo qualitativa sobre os dados da indústria eólica foi realizada por meio de entrevistas com stakeholders do setor de energia eólica, além de documentos e notícias complementares. São discutidos os benefícios ambientais, econômicos e sociais proporcionados pelo desenvolvimento do setor eólico no Brasil, notadamente na geração de empregos, atração de investimentos, desenvolvimento regional, entre outros. As políticas de desenvolvimento do setor energia eólica no Brasil são analisadas à luz da abordagem cepalina do Big Push para a Sustentabilidade, ou seja, da possibilidade de que os investimentos no setor tenham contribuído para um grande impulso (Big Push) para um ciclo virtuoso de crescimento econômico, geração de empregos e redução dos impactos ambientais na produção de energia no Brasil.
    Date: 2020–05–26
  25. By: Joris Klingen (Vrije Universiteit Amsterdam); Jos van Ommeren (Vrije Universiteit Amsterdam)
    Abstract: Medical research suggests that particulate matter (PM) increases stress hormones, therefore increasing the feeling of stress, which has been hypothesised to induce individuals to take less risk. To examine this, we study whether PM increases the probability of drawing in chess games using information from the Dutch club competition. We provide evidence of a reasonably strong effect: A 10μg increase in PM10 (33.6% of mean concentration) leads to a 5.8% increase in draws. Our results demonstrate that air pollution causes individuals to take less risk.
    Keywords: air pollution, particulate matter, cognitive ability, risk taking
    JEL: Q53 D81 I18
    Date: 2020–05–24
  26. By: Vásquez Cordano, Arturo Leonardo
    Abstract: Se muestra, a partir de los resultados de un análisis de equilibrio general computable (CGE), el impacto en la economía peruana que tienen las interrupciones del suministro de gas natural por potenciales restricciones en el sistema de transporte del proyecto Camisea situado en la región del Cusco, Perú. Mediante un ejercicio de simulación utilizando un modelo CGE, se estima que el valor social para la economía peruana debido a la interrupción de un día en el suministro de gas natural asciende, en el escenario base, a US$ 335 millones, lo que equivale a 0.21% del PBI peruano en términos reales. En un escenario catastrófico de suspensión del suministro de gas natural de tres meses, las pérdidas sociales podrían ascender a más de US$ 30,000 millones, lo que equivale aproximadamente a 19% del PBI peruano. Al final del documento, se discuten algunas recomendaciones de política para atenuar los impactos de los cortes de suministro de gas natural en el Perú.
    Keywords: Gas Natural Licuado; Actividades Extractivas; Proyecto Camisea; Perú; GLP; renewable resources; Disasters; gas pipeline constraints; computable general equilibrium (CGE); Peru; Camisea; economic impact evaluation
    JEL: C58 D57 D58 L95 Q35 Q41 Q54
    Date: 2019–06
  27. By: Lehmann, Paul; Ammermann, Kathrin; Gawel, Erik; Geiger, Charlotte; Hauck, Jennifer; Heilmann, Jörg; Meier, Jan-Niklas; Ponitka, Jens; Schicketanz, Sven; Stemmer, Boris; Tafarte, Philip; Thrän, Daniela; Wolfram, Elisabeth
    Abstract: The deployment of onshore wind power involves spatial sustainability trade-offs, e.g., between the minimization of energy system costs, the mitigation of impacts on humans and biodiversity, and equity concerns. We analyze challenges arising for decision-making if wind power generation capacity has to be allocated spatially in the presence of such trade-offs. The analysis is based on a game developed for and played by stakeholders in Germany. The results of the game illustrate that there is no unanimously agreed ranking of sustainability criteria among the participating stakeholders. They disagreed not only on the weights of different criteria but also their definition and measurement. Group discussions further revealed that equity concerns mattered for spatial allocation. Yet, stakeholders used quite different concepts of equity. The results support the importance of transparent, multi-level and participatory approaches to take decisions on the spatial allocation of wind power generation capacity.
    Keywords: Deliberative methods,equity,Germany,renewable energies,spatial optimization
    JEL: Q01 Q42 Q51 Q57 R12
    Date: 2020
  28. By: Balsalobre-Lorente, Daniel; Driha, Oana M.; Sinha, Avik
    Abstract: This paper validates the tourism-led growth hypothesis for a panel of selected OECD countries, including the effects of per capita CO2, globalization and energy use during the period 1994-2014. The long-term relationship between economic growth and the above-mentioned variables is confirmed by applying unit root tests and cointegration approaches. The Generalized Method of Moments (GMM) methodology confirms a N-shaped relationship between international tourism and per capita economic growth. Globalization does not appear to be very effective in the short run for promoting economic growth; its impact on growth is determined through a finite-lag distribution, as the optimal effect can only be achieved in the long term. A direct relationship is detected between economic growth, energy use and globalization. The recommendation is to reshape regulatory frameworks with a clearer focus on promoting international tourism and more efficient energy use as a means of enhancing sustainable economic growth in developed countries. The empirical results reveal that fossil fuels account for a large part of the energy mix, so policy makers should consider reinforcing the promotion of clean energy sources and the use of more efficient processes.
    Keywords: tourism-led growth hypothesis, globalization, CO2 emissions, energy use
    JEL: L83 Q5 Q53
    Date: 2020
  29. By: Ketenci, Natalya; Aydoğan, Ebru Tomris
    Abstract: Sustainable economic growth is a continuous increase in environmentally adjusted net domestic product (Bartelmus, 1994). This study investigates the role of natural gas consumption and trade openness in the economic growth of Turkey for the period 1977-2017. Turkey underwent several political and economic shocks during this period. Therefore, the paper employs the Kejriwal and Perron (2010) structural break test to investigate the relationship between economic growth and its determinants in the presence of structural shifts. The outcomes underline the importance of breaks consideration in estimations since they provide detailed impacts of variables on economic growth through sub regimes.
    Keywords: Economic growth, natural gas consumption, energy use, cointegration, structural breaks, Turkey.
    JEL: O11 O47
    Date: 2019–09–15
  30. By: Bhattacharya, Amar; Stern, Nicholas
    Abstract: The COVID-19 pandemic has underlined the fragility and dangers of the old growth path. There can be no going back to the old normal, argue Amar Bhattacharya and Nicholas Stern.
    Keywords: coronavirus; Covid-19; green growth; net zero; sustainable development; zero emissions growth
    JEL: E6
    Date: 2020–04–27
  31. By: Jahn, Malte; Schumacher, Paul; Wedemeier, Jan; Wolf, André
    Abstract: The paper at hand discusses the different typologies of combined transportation in Europe. It shows that an improvement of handling infrastructure for combined transport can positively reduce environmental costs of trading between regions. However, the expected emission reduction effects are relatively small in comparison to the total emissions of the transport sector. This means that, in order to achieve a substantial reduction of emissions, combined transport initiatives need to be complemented by a reduction of the specific emissions of the relevant transport modes. The paper closes with an outlook towards the development of the combined transportation sector.
    Keywords: combined transport,European Union,hinterland transportation,sustainability,regional economics,Baltic Sea Region
    JEL: R4 R40 R48 Q56
    Date: 2020
  32. By: Burgess, Robin; Greenstone, Michael; Ryan, Nicholas; Sudarshan, Anant
    JEL: N0 J1
    Date: 2020–12–01
  33. By: Lu Zhang (CPB Netherlands Bureau for Economic Policy Analysis); Lennart Stangenberg (RUG); Sjors van Wickeren (EUR)
    Abstract: Do energy labels contain extra information that buyers cannot observe themselves? Which labeling scheme is more effective: a voluntary or a mandatory one? In this paper we examine the information value of voluntary and mandatory energy labels using administrative data on all transactions in the Dutch residential housing market. Employing a combination of hedonic price models, matching and a sharp Regression Discontinuity Design (RDD), we show that voluntary labels introduced in the period 2008-2014 contain limited information value. The information value of mandatory labels that are adopted since 2015 is less clear-cut. We observe that better-labeled dwellings were transacted with significant price premiums before obtaining labels. This implies that at least part of the premiums cannot be attributed to mandatory labels.
    JEL: R38 R58
    Date: 2020–05
  34. By: Gaggl, Paul (University of North Carolina at Charlotte); Gray, Rowena (University of California, Merced); Marinescu, Ioana E. (University of Pennsylvania); Morin, Miguel (The Alan Turing Institute)
    Abstract: Electricity is a general purpose technology and the catalyst for the second industrial revolution. What was its impact on the structure of employment? We use U.S. Census data from 1910 to 1940 and measure electrification with the length of higher-voltage electricity lines. Instrumenting for electrification using hydro-electric potential, we find that the average expansion of high-voltage transmission lines between 1910 and 1940 increased the share of operatives in a county by 3.3 percentage points and decreased the share of farmers by 2.1 percentage points. Electrification can explain 50.5% of the total increase in operatives, and 18.1% of the total decrease in farmers between 1910 and 1940. At the industry level, electrification drove 15.7% of the decline in the share of agricultural employment and 28.4% of the increase in the share of manufacturing employment between 1910 and 1940. Electrification was thus a key driver of structural transformation in the U.S. economy.
    Keywords: technological change, electrification, structural change
    JEL: E25 E22 J24 J31 N32 N72 O33
    Date: 2020–05
  35. By: Bista, Raghu
    Abstract: Sustainable Development Goal (SDG) 7: energy for all is a global agenda to Nepal, where about 85 percent rural population have not access to energy for lighting and about 40 percent of the bottom 20 percent extreme poor access energy. The government has been initiating alternative energy to reduce such huge energy gap. Still it is not sufficient for wider impact. The corporate sector’s social responsibility is alternative hope for further collaboration. However, still energy for all campaign is sluggish. In this context, this paper examines CSR of the corporate sector in Nepal and its contribution in SDG 7: energy for all. The paper has employed explorative and descriptive method based on secondary and primary data. The paper finds a better knowledge of stakeholders about CSR but its fund is informal and small. Its size is un systematically least. It is voluntarily nature to the corporate sector. Its impact is narrow. In SDG 7: energy for all, there is no knowledge about SDG 7, no CSR activity and event because of no mandatory, no knowledge and no idea. Therefore, almost all stakeholders opine to make it mandatory and prioritized SDG 7: energy for all for its positive impacts in the society at large and wider.
    Keywords: SDG, CSR, Corporate sector and CSR fund
    JEL: L0 L2 L22 L26 L5 L51 L6 M13 M14 M16 M2 M21
    Date: 2018–12–02
  36. By: Éloi Laurent (Sciences Po-OFCE et Université de Stanford)
    Abstract: This study examines some major structuring projects in the advancement of the social- ecological transition in five French cities. It proposes to define the challenges of the urban social- ecological transition in France in two ways. The first consists in dividing the fields of social-ecological transition into four main domains covering a certain number of key themes and the related policies; the second aims to specify the social-ecological competences of the municipalities according to existing law. The first part of this study is devoted to the definition of this double evaluation framework. And the second details some major projects implemented in the five selected cities. In conclusion, the study draws four lessons from this partial panorama.
    Keywords: Urban social-ecological transition, Paris, Grenoble, Nantes, air pollution.
    JEL: Q3 Q5 D3 D6
    Date: 2020–05
  37. By: Adeola Adenikinju (Univeristy of Ibadan)
  38. By: Frondel, Manuel; Thomas, Tobias
    Abstract: Angesichts der wachsenden klimapolitischen Herausforderungen streben mittlerweile viele Länder Europas bis zum Jahr 2050 eine Dekarbonisierung an, das heißt den Ausstieg aus der Nutzung fossiler Energieträger. Vor diesem Hintergrund präsentiert dieser Beitrag Prognosen des Energiebedarfs und der Energiemixe für Deutschland, Österreich und die Schweiz für das Jahr 2030 sowie einen Ausblick auf das Jahr 2050. Der Vergleich der bisherigen Energiepolitiken dieser Länder offenbart gravierende Unterschiede: Während Deutschland bislang vorwiegend auf die massive Subventionierung alternativer Stromerzeugungstechnologien gesetzt hat, war der bisherige Ansatz Österreichs eher, Energieverbrauch und Treibhausgasausstoß mit ordnungsrechtlichen Maßnahmen, insbesondere Ge- und Verboten, aber auch Subventionen, senken zu wollen. Im Gegensatz dazu setzt die Schweiz bereits seit dem Jahr 2008 auf das marktwirtschaftliche Instrument der CO2-Abgabe. Die hier präsentierten Prognosen des Energiebedarfs der drei Länder deuten darauf hin, dass vor allem Deutschland und Österreich mit einer Fortführung der bisherigen Politik das langfristige Ziel einer weitgehenden Dekarbonisierung nicht erreichen dürften, während es in der Schweiz bereits zu einem spürbaren Rückgang des Primärenergieverbrauchs gekommen ist. Vor diesem Hintergrund gewinnt die jüngst in Deutschland beschlossene CO2-Bepreisung der Emissionen in den Bereichen Verkehr und Wärme besondere Bedeutung. Auch die neue österreichische Bundesregierung möchte in diesen Sektoren eine CO2-Bepreisung einsetzen. Es bleibt allerdings abzuwarten, wie konsequent das marktwirtschaftliche Instrument der CO2-Bepreisung tatsächlich verfolgt wird.
    Date: 2020
  39. By: Shardul Agrawala (OECD); Damien Dussaux (OECD); Norbert Monti (OECD)
    Abstract: This paper evaluates green stimulus packages that were introduced in response to the global financial crisis (GFC) of 2007-08 and draws lessons relevant for greening the recovery from the Coronavirus (COVID-19) crisis. The paper underscores the importance of building in policy evaluation mechanisms into green stimulus measures. It also provides evidence that the implementation of sufficiently large, timely and properly designed green stimulus measures can generate economic growth, create jobs and bring about environmental benefits. However, there are also trade-offs between competing economic, environmental and social policy objectives, which underscores the importance of proper policy design.
    Keywords: environmental policy, green growth, policy design, policy evaluation, stimulus package
    JEL: Q58 E61 E62 E65 O44
    Date: 2020–05–28
  40. By: Silvester Van Koten
    Abstract: An economic laboratory experiment is used to test the validity of Bessembinder and Lemmon's (2002) seminal risk premium theory. The theory predicts that forward premia in electricity markets are determined by the statistical properties of demand. The existing empirical evidence is mixed, possibly as a result of the lack of observability of key variables. Specifically, the experiment tests if an increase in the variance of demand makes the forward premia more negative for specific parameters and implementation details. The experimental results corroborate the theoretical predictions.
    Keywords: forward premia; electricity markets; economic experiments;
    JEL: C92 G13 L94 Q47
    Date: 2020–05
  41. By: Mohamad Taghvaee, Vahid; Agheli, Lotfali; Assari Arani, Abbas; Nodehi, Mehrab; Khodaparast Shirazi, Jalil
    Abstract: Purpose – The purpose of this paper is to examine the effects of maritime and air transportation on the environment and economy of Iran. The authors specify two dynamic models of the environmental pollution and the economic growth. Then, the authors estimate the environmental and economic elasticities of maritime and air transportation in short run and long run in Iran during 1978–2012. Design/methodology/approach – The authors estimate the environmental and economic elasticities of maritime elasticities in short and long run, using simultaneous equations system. Findings – The findings indicate that the short- and long-run environmental pollution elasticities of maritime transportation are higher than those of the air ones. In addition, the economic growth elasticities are greater in the air transportation compared to maritime one. As a result, the maritime transportation is more pollutant and less productive in Iran in comparison with the air transportation. Originality/value – The policymakers are advised to improve the infrastructure of maritime transportation from both the environmental and economic point of views. Consequently, the air transportation is considered as a cleaner and more beneficial transportation mo
    Keywords: Iran, Economic growth
    JEL: O2 R41
    Date: 2019
  42. By: Nöh, Lukas; Rutkowski, Felix; Schwarz, Milena
    Abstract: Um langfristige Klimaziele zu erreichen kommt der Bepreisung von Treibhausgasemissionen eine entscheidende Rolle zu. Wir untersuchen die Auswirkungen eines CO2-Preises auf die Inflationsrate am Beispiel des in Deutschland geplanten nationalen Brennstoff-Emissionshandelssystems, welches ab 2021 insbesondere für die Sektoren Verkehr und Wärme eingeführt wird. Hierfür analysieren wir Preisänderungen im Warenkorb von Haushalten auf Basis ihrer durchschnittlichen Ausgaben und den damit verbundenen CO2-Emissionen je verausgabtem Euro. Im Bereich Kraftstoffe und Heizenergie errechnen wir einen Beitrag zur Inflation im Jahr 2021 von etwa 0,5 Prozentpunkten. Unter Berücksichtigung von indirekten Preissteigerungen im Warenkorb, die dadurch entstehen, dass der CO2-Preis bestimmte Vorleistungen von Gütern verteuert, könnte sich ein deutlich höherer Einfluss von bis zu 1,06 Prozentpunkten ergeben. Aufgrund heterogener Ausgabenanteile für besonders CO2-intensive Güter in den entsprechenden Warenkörben nimmt die rechnerische Inflationssteigerung mit steigendem Einkommen genauso zu wie mit steigender Anzahl an Personen in einem Haushalt. Zudem steigt die Inflation stärker für Haushalte auf dem Land als in dichter besiedelten Regionen.
    Date: 2020
  43. By: Bidard, Christian (EconomiX, Université Paris Nanterre); Erreygers, Guido (Department of Economics, University of Antwerp)
    Abstract: Smith, Ricardo, Marx and Sraffa made no theoretical distinction between exhaustible resources and lands. The very notion of exhaustibility, however, can be opposed to that of ‘indestructible powers of the soil’ (Ricardo) and calls for a specific analysis distinct from that of rent. The diversity of the contemporary attempts to deal with that question in a classical framework shows how varied are the understandings of the main methodological features of classical theory. Three crucial points emerge: first, the treatment of prices, which are invariant in classical theory but, according to the Hotelling rule, are changing through time for exhaustible resources; second, the notion and the measure of the rate of profits; and, third, the relationship between economic analysis and a more historical and sociological approach stressing the balances of power between classes. Our own approach starts from a very simple model, called the corn-guano model, where guano is the exhaustible resource, and examines the dynamics of such an economy on the physical side and the value side. These lessons serve as a basis for an extension to multisector models. We provide a critical assessment of a few alternative approaches developed by Sraffian scholars.
    Keywords: exhaustible resources; classical theory; Hotelling rule; Sraffian approach
    JEL: B24 Q32
    Date: 2020–05–26
  44. By: Junichi Hirose (Kochi University); Koji Kotani (School of Economics and Management, Kochi University of Technology); Yoshinori Nakagawa (School of Economics and Management, Kochi University of Technology)
    Abstract: Climate change is a serious problem that requires people’s cooperation to solve, and it has been reported that there have been gaps in perceptions about the cause. However, little is known about what makes people perceive that climate change is human-induced, nature-induced or induced by some other factor and the linkage between perception and cooperation. We analyze the determinants of human-induced perception and the impact of the gap in perceptions on cooperative behaviors toward climate change by conducting a survey experiment with a climate donation game with 400 Japanese subjects. First, the analysis identifies the importance of people’s scientific literacy in explaining the perception gaps in that those with high scientific literacy tend to have the perception of human-induced climate change. Second, people are identified as being cooperative toward climate change, as they have a prosocial value orientation, high scientific literacy and the perception of human-induced climate change, demonstrating two important roles of scientific literacy as not only a direct determinant but also an indirect one, through a mediator of people’s perceptions. Overall, the results suggest that scientific literacy shall be a key to enhancing cooperation toward climate change by promoting the perception of human-induced climate change.
    Keywords: Human-induced climate change, scientific literacy, climate donation game
    Date: 2020–05
  45. By: Powdthavee, Nattavudh (University of Warwick)
    Abstract: There is a widespread belief that a lack of education is the primary cause of public apathy to climate change. Yet, despite the global campaign to promote education as a tool to combat global warming, empirical evidence on the causal effect of education on climate literacy and pro-environmental behaviours remains worryingly scarce. Using the raising of the minimum school leaving age law in England from 15 to 16 years of age in September 1972 as a natural experiment, I showed that remaining in school as a result of the reform causally increased the level of comprehension about the causes of climate change. However, I found little causal evidence that more education also improved the pro-environmental behaviours of those who were affected by the reform. This raises an important question of whether policies aimed at improving climate change awareness through education can effectively produce long-lasting changes in pro-environmental behaviours.
    Keywords: climate change, education, pro-environmental behaviours, regression discontinuity, UK
    JEL: I26 Q54
    Date: 2020–05
  46. By: Persico, Claudia (American University); Johnson, Kathryn R. (American University)
    Abstract: The COVID-19 virus, also known as the coronavirus, is currently spreading around the world. While a growing literature suggests that exposure to pollution can cause respiratory illness and increase deaths among the elderly, little is known about whether increases in pollution could cause additional or more severe infections from COVID-19, which typically manifests as a respiratory infection. Using variation in pollution induced by a rollback of enforcement of environmental regulations by the Environmental Protection Agency (EPA) and a difference in differences design, we estimate the effects of increased pollution on county-level COVID-19 deaths and cases. Despite popular media coverage to the contrary, we find that counties with more Toxic Release Inventory (TRI) sites saw increases in pollution following the EPA's rollback of enforcement, while counties with fewer sites saw a smaller increase in pollution. We find that increases in pollution are associated with increases in cases and deaths from COVID-19.
    Keywords: pollution, COVID-19, coronavirus, health, mortality
    JEL: Q53 I10 I14
    Date: 2020–05

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