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on Energy Economics |
| By: | Afees A. Salisu (Centre for Econometric & Allied Research, University of Ibadan, Ibadan, Nigeria); Juncal Cunado (Economics Department, University of Navarra, Spain); Kazeem Isah (Centre for Econometric & Allied Research, University of Ibadan, Ibadan, Nigeria); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa) |
| Abstract: | We attempt to predict the exchange rate returns of BRICS countries with the global oil price using large historical datasets for over a century extending from September 1859 to April 2020. We formulate a predictive model that accounts for the salient features of the predictor and the predicted series in line with the recent literature. We establish, with the aid of asymmetry, that oil price is a good predictor of exchange rate returns for all the net oil-importers (India, South Africa and China) and one of the two net oil-exporters (Russia). We also demonstrate with compelling in-sample and out-of-sample forecast results that accounting for the role of asymmetry is crucial for the oil-based model to beat the benchmark (historical average) model. |
| Keywords: | Oil price, Exchange rate return, BRICS, Asymmetry, Predictability, Forecast evaluation |
| JEL: | C22 C53 F31 Q47 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202064&r=all |
| By: | Christoph Böhringer; Knut Einar Rosendahl |
| Abstract: | Several European countries have decided to phase out coal power generation. Emissions from electricity generation are already regulated by the EU Emissions Trading System (ETS), and in some countries like Germany the phaseout of coal will be accompanied with cancellation of emissions allowances. In this paper we examine the consequences of phasing out coal, both for the broader economy, the electricity sector, and for CO2 emissions. We show analytically how the welfare impacts for a phaseout region depend on i) whether and how allowances are canceled, ii) whether other countries join phaseout policies, and iii) terms-of-trade effects in the ETS market. Based on numerical simulations with a computable general equilibrium model for the European economy, we quantify the economic and environmental impacts of alternative phaseout scenarios, considering both unilateral and multilateral phaseout. We find that terms-of-trade effects in the ETS market play an important role for the welfare effects across EU member states. For Germany, coal phaseout combined with unilateral cancellation of allowances is found to be welfare-improving if the German citizens value emissions reductions at 65 Euro per ton or more. |
| Keywords: | coal phaseout, emissions trading, electricity market |
| JEL: | D61 F18 H23 Q54 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8412&r=all |
| By: | Kai Lessmann; Matthias Kalkuhl |
| Abstract: | Interest rates are central determinants of saving and investment decisions. Costly financial intermediation distort these price signals by creating a spread between the interest rates on deposits and loans with substantial effects on the supply of funds and the demand for credit. This study investigates how interest rate spreads affect climate policy in its ambition to shift capital from polluting to low-carbon sectors of the economy. To this end, we introduce financial intermediation costs in a dynamic general equilibrium climate policy model. We find that costly financial intermediation affects carbon emissions in various ways through a number of different channels. For low to moderate interest rate spreads, carbon emissions increase by up to 7 percent, in particular, because of lower investments into the capital intensive clean energy sector. For very high interest rate spreads, emissions fall because lower economic growth reduces carbon emissions. If a certain temperature target should be met, carbon prices have to be adjusted upwards by up to one third under the presence of capital market frictions. |
| Keywords: | financial friction, banking, greenhouse gas mitigation |
| JEL: | E43 G21 Q54 Q58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8380&r=all |
| By: | Gustav Engström; Johan Gars; Niko Jaakkola; Therese Lindahl; Daniel Spiro; Arthur A. van Benthem |
| Abstract: | The coronavirus pandemic has led many countries to initiate unprecedented economic recovery packages. Policymakers tackling the coronavirus crisis have also been encouraged to prioritize policies which help mitigate a second, looming crisis: climate change. We identify and analyze policies that combat both the coronavirus crisis and the climate crisis. We analyze both the long-run climate impacts from coronavirus-related economic recovery policies, and the impacts of long-run climate policies on economic recovery and public health post-recession. We base our analysis on data on emissions, employment and corona-related layoffs across sectors, and on previous research. We show that, among climate policies, labor-intensive green infrastructure projects, planting trees, and in particular pricing carbon coupled with reduced labor taxation boost economic recovery. Among coronavirus policies, aiding services sectors (leisure services such as restaurants and culture, or professional services such as technology), education and the healthcare sector appear most promising, being labor intensive yet low-emission—if such sectoral aid is conditioned on being directed towards employment and on low-carbon supply chains. Large-scale green infrastructure projects and green R&D investment, while good for the climate, are unlikely to generate enough employment to effectively alleviate the coronavirus crisis. |
| Keywords: | coronavirus, climate policy |
| JEL: | Q54 E62 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8367&r=all |
| By: | Olivier Durand-Lasserve; Hossa Almutairi; Abdullah AlJraboua; Frederic Murhphy; Shreekar Pradhan; Axel Pierru (King Abdullah Petroleum Studies and Research Center) |
| Keywords: | Energy Market regulation and reform, Energy Policy, Energy Subsidies |
| Date: | 2020–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2020-dp16&r=all |
| By: | Mahdi Ghaemi Asl (Kharazmi University); Giorgio Canarella (University of Nevada, Las Vegas); Stephen M. Miller (University of Nevada, Las Vegas) |
| Abstract: | This paper investigates returns and volatility transmission between SPGCE (index of clean energy stocks), SPGO (index of oil and gas stocks), two non-renewable energy commodities (natural gas and crude oil), and three products of crude oil distillation (heating oil, gasoline, and propane). We estimate a VAR(1) asymmetric BEKK-MGARCH(1,1) using daily U.S. data from March 1, 2010, to February 25, 2020. The empirical findings reveal a vast heterogeneity in spillover patterns of returns, volatilities, and shocks. We employ the empirical results to derive optimal portfolio weights, hedge ratios, and effectiveness measures for SPGCE and SPGO diversified portfolios. We find dynamic diversification advantages of energy commodities, especially heating oil, for energy-related stock markets. We also find that SPGCE and SPGO stocks possess the highest average optimal weight and hedging effectiveness for each other, implying that the positive performance of SPGCE stocks considerably compensates for the negative performance of SPGO stocks. For investors and regulators, the advancement and implementation of clean energy programs and policies, while reducing environmental debt and enhancing “green” growth and sustainable development, provide instruments and strategies to hedge the equity risks inherent in the oil and gas industry. |
| Keywords: | Clean energy stocks, Oil and gas stocks, Asymmetric BEKK, Dynamic Optimal Portfolios. |
| JEL: | Q43 G11 C33 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2020-07&r=all |
| By: | Michael Pflüger |
| Abstract: | This paper develops a model with an endogenous number of cities to explore whether local governments establish the optimal city size when key activities in the city are associated with emissions that harm consumers. In contrast to extant research, our model is fully micro-founded with respect to the urban sector and the agglomeration mechanism as well as the modelling of pollution and pollution abatement. We derive two key insights. First, if the national government implements a permit system (equivalently, pollution taxes) that allow for emissions as in the first-best, cities chosen by local governments are too small. Second, if no emission scheme is implemented, or if emission policies are too lax, cities steered by local governments may become too large. The tractability of the model also allows us to uncover the determinants of optimal city sizes, emissions, emission intensities and determinants of locally chosen city sizes, as well as to address the second-best emission policy and extensions to city asymmetries, a fiscal externality, local pollution, generalized commuting costs and further pollution sources. |
| Keywords: | city systems, environmental pollution, emission policies |
| JEL: | H73 R12 Q50 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8448&r=all |
| By: | Pillai N., Vijayamohanan |
| Abstract: | Traditionally, there are two basically reciprocal energy efficiency Indicators: one, in terms of energy intensity, that is, energy use per unit of activity output, and the other, in terms of energy productivity, that is, activity output per unit of energy use. The enquiry that has proceeded from the problems associated with this method of a single energy input factor in terms of productivity has led to multi-factor productivity analysis. We have here two approaches: parametric and non-parametric. Parametric approach famously includes two methods: the erstwhile popular total factor energy productivity analysis and the currently fanciful stochastic frontier production function analysis; The non-parametric approach is popularly represented by data envelopment analysis. The present paper is an attempt to measure efficiency in electrical energy consumption in Kerala, India. We apply the non-parametric mathematical programming method of data envelopment analysis of the multi-factor productivity approach, and estimate the efficiency measures under the two scale assumptions of constant returns to scale (CRS) and variable returns to scale (VRS); the latter includes both increasing (IRS) and decreasing returns to scale (DRS). Scale efficiency measures are also given to find out whether a firm is operating at its optimal size or not, implying degrees of capacity utilization. |
| Keywords: | Energy efficiency, Kerala, Power sector, Data envelopment, Technical efficiency. |
| JEL: | C13 C51 Q4 |
| Date: | 2019–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:101945&r=all |
| By: | Dang, Hai-Anh H.; Trinh, Trong-Anh |
| Abstract: | Despite a growing literature on the impacts of the COVID-19 pandemic, scant evidence currently exists on its impacts on air quality. We offer the first study that provides cross-national evidence on the causal impacts of COVID-19 on air pollution. We assemble a rich database consisting of daily, sub-national level data of air quality for 178 countries before and after the COVID-19 lockdowns, and investigate their impacts on air quality using a Regression Discontinuity Design approach. We find the lockdowns to result in significant decreases in global air pollution. These results are consistent across measures of air quality and data sources and robust to various model specifications. Some limited evidence emerges that countries with a higher share of trade and manufacturing in the economy or with an initially lower level of air pollution witness more reduced air pollution after the lockdowns; but the opposite result holds for countries near the equator. We also find that mobility restrictions following the lockdowns are a possible explanation for improved air quality. |
| Keywords: | COVID-19,air pollution,mobility restriction,RDD |
| JEL: | D00 H00 O13 Q50 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:606&r=all |
| By: | Monica Maduekwe (Praia, Cabo Verde); Uduak Akpan (SPIDER) Solutions Nigeria, Uyo, Nigeria); Salisu Isihak (Rural Electrification Agency, Abuja, Nigeria) |
| Abstract: | The “Avoid†, “Shift†and “Improve†(A-S-I) approach is an effective method for transforming an unsustainable transport system to a sustainable one. This study intends to examine the possible impact of the A-S-I policy measures in transforming the transportation system in Lagos - the most populous city and the commercial capital of Nigeria. The study employs the Long Range Energy Alternative Planning (LEAP) model to project future energy demand and greenhouse gas emissions to determine the most effective A-S-I option for the city. We construct a business-as-usual scenario for Lagos as well as sustainable road transport alternative policy scenarios. The results show that Lagos’ biggest obstacle to achieving its emission reduction target is the presence of very old vehicles on its roads. Our analysis shows that emission reduction in the road transport sector in Lagos is sensitive to vehicle survivability rate (i.e. the fraction of vehicles of a certain age still driven). We conclude that unless the age limit of vehicles in Lagos reduces from 40 years to 22 years, vehicle growth rate from 5% to 2% and mileage by 2% per year from 2020- 2032, Lagos may not achieve the target 50% emission reduction by 2032. |
| Keywords: | Road transport, energy consumption, greenhouse gas emissions, LEAP, Lagos, Nigeria |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:20/055&r=all |
| By: | Thöne, Michael (Ed.) |
| Abstract: | Evaluierung von 33 Steuervergünstigungen. Steuervergünstigungen sind breitenwirksam einsetzbare und potenziell effiziente Instrumente der Förderung und instrumentellen Unterstützung zahlreicher Politikfelder, beispielsweise in der Verkehrspolitik, der Wohnungspolitik, der Umweltpolitik sowie für viele sektorale oder Querschnittsaufga- ben der Wirtschaftspolitik. Zugleich verlangen steuerliche Subventionen wegen ihrer Budgetferne sowie ihrer Tendenz zu Langlebigkeit und Mitnahmeeffekten die besondere Wachsamkeit einer verstärkt auf Ergebnisorientierung und Evidenzbasierung aufbauenden politischen Steuerung Für diesen Anspruch liefert die große Evaluierung von 33 deutschen Steuervergünstigungen die wissenschaftliche Grundlage. Im Auftrag des Bundesministeriums der Finanzen haben 2017 bis 2019 das ZEW Mannheim, das Ifo Institut, das Fraun- hofer FIT sowie federführend das FiFo Köln gemeinsam steuerliche Subventionen im Umfang von zusammen rund 7,4 Milliarden Euro quantifiziert und nach einem einheitlichen Muster tiefgehend evaluiert. Die Evaluierung gliedert sich insgesamt in sechs Teile, die hier gemäß der Nummerierung der FiFo-Berichte nach Evaluierungsgruppe (EG) aufgeführt sind: 28-0 Ergebnisüberblick, Evaluationsschema, Methoden 28-A EG A: Energie- und Stromsteuer 28-B EG B: Kraftfahrzeugsteuer 28-C EG C: Einkommensteuer - Gewerbliche Wirtschaft und Landwirtschaft 28-D EG D: Einkommensteuer - Wohnungswesen und Städtebau 28-E EG E: Einkommensteuer- Mitarbeiterkapitalbeteiligung |
| Keywords: | Steuervergünstigungen,Subventionen,Evaluation,Tax expenditures,subsidies,evaluation |
| JEL: | H23 H24 H25 |
| Date: | 2019 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fifore:28a&r=all |
| By: | Taran Fæhn (Statistics Norway); Gabriel Bachner; Robert Beach; Jean Chateau; Shinichiro Fujimori; Madanmohan Ghosh; Meriem Hamdi-Cherif; Elisa Lanzi; Sergey Paltsev; Toon Vandyck; Bruno Cunha; Rafael Garaffa; Karl Steininger |
| Abstract: | Limiting global warming in line with the goals in the Paris Agreement will require substantial technological and behavioural transformations. This challenge drives many of the current modelling trends. This article undertakes a review of 17 state-of-the-art recursive-dynamic computable general equilibrium (CGE) models and assesses the key methodologies and applied modules they use for representing sectoral energy and emission characteristics and dynamics. The purpose is to provide technical insight into recent advances in the modelling of current and future energy and abatement technologies and how they can be used to make baseline projections and scenarios 20-80 years ahead. Numerical illustrations are provided. In order to represent likely energy system transitions in the decades to come, modern CGE tools have learned from bottom-up studies. Three different approaches to baseline quantification can be distinguished: (a) exploiting bottom-up model characteristics to endogenize responses of technological investment and utilization, (b) relying on external information sources to feed the exogenous parameters and variables of the model, and (c) linking the model with more technology-rich, partial models to obtain bottom-up- and pathwayconsistent parameters. |
| Keywords: | Computable general equilibrium models; Long-term economic projections; Energy; Technological change; Emissions; Greenhouse gases |
| JEL: | C68 O13 O14 O18 Q43 Q54 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:936&r=all |
| By: | Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Syed Jawad Hussain Shahzad (Montpellier Business School, Montpellier, France; South Ural State University, Chelyabinsk, Russian Federation); Xin Sheng (Lord Ashcroft International Business School, Anglia Ruskin University, Chelmsford, CM1 1SQ, United Kingdom); Sowmya Subramaniam (Indian Institute of Management Lucknow, Prabandh Nagar off Sitapur Road, Lucknow, Uttar Pradesh 226013, India) |
| Abstract: | We use daily data for the period 5 January 2000 to 31 October 2018 to analyse the impact of structural oil supply, oil demand and financial market risk shocks on the level, slope and curvature factors derived from the term structure of interest rates of the United States covering maturities of 1 to 30 years. Linear causality tests detect no evidence of predictability of these shocks on the three latent factors. However, statistical tests performed on the linear model provide evidence of nonlinearity and structural breaks, and hence indicate that the Granger causality test results are based on a misspecified framework, and cannot be relied upon. Given this, we use a nonparametric causality in-quantiles test to reconsider the predictive ability of the three shocks on the three latent factors, with this model being robust to misspecification due to nonlinearity and regime change, as it is a data-driven approach. Moreover, this framework allows us to model the entire conditional distribution of the level, slope and curvature factors, and hence can accommodate, via the lower quantiles, the zero lower bound situation seen in our sample period. Using this robust model, we find overwhelming evidence of causality from the two oil shocks and the risk shock for the entire conditional distribution of the three factors, suggesting the predictability of the entire US term structure based on information contained in oil and financial market innovations. Our results have important implications for academics, investors and policymakers. |
| Keywords: | Yield Curve Factors, Oil Supply and Demand Shocks, Risk Shock, Causality-in-Quantiles Test |
| JEL: | E43 C22 C32 G12 Q41 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202063&r=all |
| By: | Jiqiang Wang; Jianfeng Guo; Peng-Fei Dai; Yinpeng Liu; Ying Fan |
| Abstract: | The European Union Emission Trading Scheme is a carbon emission allowance trading system designed by Europe to achieve emission reduction targets. The amount of carbon emission caused by production activities is closely related to the socio-economic environment. Therefore, from the perspective of economic policy uncertainty, this article constructs the GARCH-MIDAS-EUEPU and GARCH-MIDAS-GEPU models for the impact of European and global economic policy uncertainty on carbon price fluctuations. The results show that both European and global economic policy uncertainty will exacerbate the volatility of carbon price returns, with the latter having a stronger impact. Moreover, the volatility of carbon price returns can be forecasted better with the predictor of global economic policy uncertainty. This research can provide some implications for market managers in grasping market trends and helping participants control the risk of fluctuations in carbon allowances. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.10564&r=all |
| By: | David Deller (Centre for Competition Policy, University of East Anglia); Amelia Fletcher (Centre for Competition Policy and Norwich Business School, University of East Anglia) |
| Abstract: | While householders’ ability to navigate the domestic retail energy market has generated considerable debate, little attention has been given to micro and small businesses’ (MSBs) purchasing of energy. This paper provides the first academic assessment of MSBs’ satisfaction with the UK’s retail energy market. Using survey data from the UK energy regulator we find that while intermediaries are central to MSBs switching energy supplier, the quantity of marketing contact received from them is a key source of dissatisfaction. This dissatisfaction with marketing contact has direct policy relevance as the Competition and Market Authority’s 2016 Energy Market Investigation recommended that a database of ‘disengaged’ MSBs be established to enable marketing communications from rival suppliers to prompt MSBs to switch. We also query whether the need for more MSB engagement is obvious, given the prevalence of multi-year energy contracts among MSBs, suggesting that the ‘optimal’ switching level of MSBs likely differs from that of householders. Our evidence suggests that there could be benefits from increased regulatory oversight of intermediaries’ behaviour. Furthermore we note that existing data fail to address an issue of importance for regulatory decision making: the overlap between households and MSBs and the potential choice for MSBs between domestic and non-domestic contracts. Overall, the paper exemplifies the types of insights that can be obtained by regulators providing wider access to the surveys they commission. We recommend that UK regulatory agencies share anonymised raw survey data by default to enhance the transparency, and potentially quality, of their decision making. |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:uea:ueaccp:2018_09&r=all |
| By: | Jiawei Du |
| Abstract: | We studied the volatility and cross-sectional return dispersion effect of S&P Health Care Sector under the covid-19 epidemic. We innovatively used the Google index to proxy the impact of the epidemic and modeled the volatility. We also studied the influencing factors of the log-return of S&P Energy Sector and S&P Health Care Sector. We found that volatility is significantly affected by both the epidemic and cross-sectional return dispersion, and the coefficients in front of them are all positive, which means that the herding behaviour did not exist and as the cross-sectional return dispersion increases and the epidemic becomes more severe, the volatility of stock returns is also increasing. We also found that the epidemic has a significant negative impact on the return of the energy sector, and finally we provided our suggestions to investors. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.11546&r=all |
| By: | Bernadeta Gołębiowska (Faculty of Economic Sciences, University of Warsaw); Anna Bartczak (Faculty of Economic Sciences, University of Warsaw); Mikołaj Czajkowski (Faculty of Economic Sciences, University of Warsaw) |
| Abstract: | The study aims to investigate the impact of social norms and the financial motivation on the disutility of Polish households from energy management. We analyzed consumers’ preferences for the new Demand-Side Management (DSM) programs. We applied a choice experiment (CE) framework for various electricity contracts that implied external control of electricity usage. Based on the hybrid model, we proved that people with higher descriptive social norms about electricity consumption are less sensitive to the level of compensation and more responsive to the number of blackouts. People who stated they would sign the contract because of the financial reasons are less sensitive to the external control of electricity consumption. They are less inclined towards the status quo option. Poland’s energy policy focuses on energy efficiency, and reduction of greenhouse gas emissions. This study may contribute to understanding the decisions of households and provide insights into the DSM option in Poland. |
| Keywords: | choice experiment, demand-side management, electricity, social norms, willingness to accept |
| JEL: | C25 D19 D91 Q41 Q48 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:war:wpaper:2020-25&r=all |
| By: | Fabra, Natalia; Llobet, Gerard |
| Abstract: | The energy transition will imply a change in the competitive paradigm of electricity markets. Competition-wise, one distinguishing feature of renewables versus fossil-fuels is that their marginal costs are known but their available capacities are uncertain. Accordingly, in order to understand competition among renewables, we analyze a uniform-price auction in which bidders are privately informed about their random capacities. Renewable plants partially mitigate market power as compared to conventional technologies, but producers are still able to charge positive markups. In particular, firms exercise market power by either withholding output when realized capacities are large, or by raising their bids above marginal costs when realized capacities are small. Since markups are decreasing in realized capacities, a positive capacity shock implies that firms offer to supply more at reduced prices, giving rise to lower but also more volatile market prices. An increase in capacity investment depresses market prices, which converge towards marginal cost when total installed capacity is sufficiently large, or when the market structure is sufficiently fragmented. |
| Keywords: | Electricity markets; Forecasts; Multi-unit auctions; renewables |
| Date: | 2019–10 |
| URL: | http://d.repec.org/n?u=RePEc:cpr:ceprdp:14060&r=all |
| By: | Sarah Hughes; Patricia Costa; Cullen Seaton; Arif Mamun; Dara Bernstein; Nils Junge Catalina Torrente |
| Abstract: | This report presents the design and methodology for Mathematica's evaluation of the Benin Policy Reform and Institutional Strengthening Project, under MCC's Benin II Compact. |
| Keywords: | Benin, electricity, power sector reform, institutional strengthening, SBEE, tariff reform |
| URL: | http://d.repec.org/n?u=RePEc:mpr:mprres:62ec5a47ce06441b97c0edd2ba54d56b&r=all |
| By: | Hamisu S. Ali (Ahmadu Bello University, Zaria, Nigeria); Solomon P. Nathaniel (University of Lagos, Akoka, Nigeria); Gizem Uzuner (Eastern Mediterranean University, Turkey); Festus V. Bekun (EXCAS, Belgium); Samuel A. Sarkodie (Nord University Business School, Norway) |
| Abstract: | In this era of intensive electricity utilization for economic development, the role of urbanization remains inconclusive, especially in developing economies. Here, this study examined the electricity consumption and economic growth nexus in a trivariate framework by incorporating urbanization as an additional variable. Using the recent novel Maki cointegration test, Ng-Perron, Zivot-Andrews, and Kwiatkowski unit root tests along with FMOLS, DOLS and the CCR estimation methods, we relied on an annual frequency data from 1971-2014. Results from FMOLS, DOLS and the CCR regression confirm the electricity consumption-driven economic growth. This is desirable as Nigeria is heavily dependent on energy (electricity) consumption. A unidirectional causality from urbanization to electricity consumption and economic growth was found but the long-run empirical findings revealed urbanization impedes growth — a situation that has policy implications. The study highlights that though urbanization is a good predictor of Nigeria’s economic growth, however, the adjustment of the energy portfolio to meet the growing urban demand will curtail the adverse and far-reaching impact of urbanization on the economy. |
| Keywords: | Economic growth; Electricity consumption; Maki Cointegration; Dynamic Causality; Urbanization |
| JEL: | O41 C32 Q43 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:20/010&r=all |
| By: | Daniel Jeong-Dae Lee (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Climate change is a fundamental threat to development; significant reductions in greenhouse gas emissions are needed to avert a climate crisis. While no single instrument will achieve this goal, there is broad agreement that carbon pricing is an integral part of climate action. This policy brief shows that carbon tax and emissions trading system are gaining momentum across the world, including in Asia and the Pacific, but current rates are too low to shift behaviour, capital and technology towards low-carbon development. While recognizing the need to raise ambition, governments are naturally concerned about the potential impacts of carbon pricing on industries, jobs and low-income households. This policy brief discusses ways to alleviate the concerns, including through effective use of carbon pricing revenues and regional cooperation. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb107&r=all |
| By: | Suyunchev, Marat (Суюнчев, Марат) (The Russian Presidential Academy of National Economy and Public Administration); Temnaya, Olga (Темная, Ольга) (The Russian Presidential Academy of National Economy and Public Administration); Agafonov, Dmitriy (Агафонов, Дмитрий) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The paper abstracts the results of research scientific work «"The tariff effects research of Cross-Subsidisation in electroenergetics", that classifies the types of Cross-Subsidisation in Russian Federation Wholesale and Retail electricity markets, and evaluates the rate and tariff effects of Cross-Subsidisation for various consumers groups. The research evaluates the possibilities to reduce the Cross-Subsidisation rate and submits the optimal solutions for Cross-Subsidisation curtailment in transmission rates between household and other electricity consumers. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:042034&r=all |
| By: | Dr. A. Muthusamy (Alagappa University, Karaikudi, 630003, Sivaganga, India Author-2-Name: Raghuveer Negi Author-2-Workplace-Name: Alagappa University, Karaikudi, 630003, Sivaganga, India Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - This paper argues the retrospective effect of foreign investment inflow. The FDI not only causes economic growth in the nation also it vindicate the societal development in the host nation. It is assumed that FDI does affect societal development either directly or indirectly also it can be constructive or dubious. Methodology – The societal development indicators have been taken for the study such as access to electricity, refugee population, and total natural resource on rent. The Ordinary Least Square (OLS) method used for regression analysis, Augmented Dickey-Fuller (ADF) used to analyse stationarity and Autoregressive Distributive Lag (ARDL) used for empirical results. Findings – The result shows the consistency in FDI inflows, but all the taken indicators have not experienced the positive effect of FDI on the societal development of a nation. Novelty – Also, the policies of the government and initiative related to foreign investment inflow have major impact on societal growth in the nation. Type of Paper - Empirical. |
| Keywords: | Electricity; FDI; India; Natural Resources; Refugee Population; Societal Development |
| JEL: | A1 E01 M14 M16 |
| Date: | 2020–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jfbr170&r=all |
| By: | Sergio Petralia; ; |
| Abstract: | The pervasive diffusion of electricity-related technologies at the beginning of the 20th century has been studied extensively to understand the transformative potential of General Purpose Technologies (GPTs). Most of what we know, however, has been investigated in relation to the diffusion of their use. This article provides evidence on the county-level economic impact of the technological adoption of Electrical & Electronic (E&E) technologies in the 1920s in the United States (US). Thus focusing on the impact of a GPT on technological adopters, i.e. those who are able to develop, transform and complement it. It is shown that places with patenting activity in E&E technologies grew faster and paid higher wages than others between 1920 and 1930. This analysis required constructing a novel database identifying detailed geographical information for historical patent documents in the US since 1836, as well as developing a text-mining algorithm to identify E&E patents based on patent descriptions. |
| Keywords: | Disruptive Technological Change, General Purpose Technologies, Historical Patent Documents, Technological Adoption |
| JEL: | O33 O31 O30 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2033&r=all |
| By: | Stephan Schulmeister |
| Abstract: | Neither a gradually rising carbon tax nor emission trading schemes can ensure that the costs of emitting greenhouse gases, in particular CO2, will steadily rise faster than the general price level. If, e.g., global fossil energy prices decline faster than a carbon tax or the emission permit price rises, then the final good and its use become cheaper. Since the prices of fossil energy as well as CO2 emission permit prices belong to the most unstable prices in the global economy, carbon taxes and trading schemes cannot anchor the long-term expectation that the effective emission costs for firms and households will rise continuously. Such an expectation, however, is a prerequisite for steadily growing investment in energy efficiency and/or renewable energy because the profits from such investments consist of the saved fossil energy costs (“opportunity profits†). This paper presents an alternative approach: The EU sets a path of steadily rising prices of crude oil, coal and natural gas by skimming off the difference between the EU target price and the respective world market price through a monthly adjusted quantity tax. Instead of the prices of fossil raw materials, the (implicit) quantity tax should fluctuate. In this way, the uncertainty about future price developments of crude oil, coal and natural gas and, hence, of the effective emission costs would be eliminated. Firms and households could calculate the profitability of investments in avoiding carbon emissions. At the same time, such a tax would ensure a uniform European carbon price in all sectors, provided the initial level of the price paths of crude oil, coal and natural gas account for the different CO2 intensities of these types of fossil energy. Given the size of the EU import bill for fossil energy, the amount of potential receipts of such an implicit and flexible CO2 tax would be (very) huge. |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:ico:wpaper:112&r=all |
| By: | Anders Dugstad; Kristine Grimsrud (Statistics Norway); Gorm Kipperberg; Henrik Lindhjem; Ståle Navrud |
| Abstract: | Despite a large stated-preference literature on wind power externalities, few SP studies employ a case-control approach to examine whether people´s acceptance of new wind power developments increases or decreases with exposure to and familiarity with wind turbines. Furthermore, the existing studies are inconclusive on this issue. In a case-control discrete choice experiment we measure the level of acceptance in terms of people´s willingness-to-accept compensation for having future landbased wind power developments in Norway; comparing exposed and non-exposed people’s WTA. We find that exposure lowers acceptance. Furthermore, exposed people are also unwilling to pay as much as non-exposed people to increase general domestic renewable energy production (from all sources), and thus have lower acceptance for such renewable energy policy initiatives. After testing for type of exposure, we argue that the inconclusiveness in the literature of how exposure affects acceptance of wind power developments could be due to the fact that impacts considered differs somewhat across studies. |
| Keywords: | Discrete Choice Experiment; exposure; wind power; willingness-to-accept; societal acceptance; familiarity |
| JEL: | Q48 Q51 Q57 |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:933&r=all |
| By: | Martin Wafula Nandelenga (School of Economics, University of Cape Town); Anthony Simpasa (Nigeria Country Department, African Development Bank) |
| Abstract: | This paper revisits the bivariate dependence between exchange rate and crude oil price and, volatility spillover in selected emerging and low-income countries. A two-pronged approach is employed in our analysis, namely elliptic copula models and the Hafner and Herwartz (2006) framework using daily data from January 2000 to December 2018. From the copula analysis, we find that the Gaussian models best capture the dependence structure in the selected countries. Moreover, the results show evidence of heterogeneous dependence for both net oil exporters and net oil importers, as well as the type of exchange rate and country classification. The results also reveal significant symmetric dependence structure for all countries. Our results confirm previous findings that an increase (decrease) in oil price in a net oil exporting (importing) country is associated with appreciation (depreciation) of the domestic currency against the US dollar. However, unlike previous studies, we find that the direction of association varies depending on the period with significant increase in degree of dependence after the global financial crisis. This pattern also manifests with risk transmission from oil prices to exchange rates. Using the Hafner and Herwartz framework, our results show significant risk spillover from oil price to foreign exchange market. These results provide important insights that policy makers should factor in the exchange rate in the design and implementation of monetary policy and for investors in their portfolio allocation decisions. |
| Keywords: | Dependence structure, Oil price, Exchange rates, Copulas, Risk spillover JEL classification: C400, E310, E320, F440 |
| Date: | 2020–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:adb:adbwps:2460&r=all |
| By: | - |
| Abstract: | A conjuntura atual do Brasil e dos países no mundo todo é marcada pela busca da recuperação do dinamismo econômico e da qualidade de vida das pessoas. Nesse contexto, a Comissão Econômica para a América Latina e o Caribe (CEPAL) das Nações Unidas vem desenvolvendo o Big Push para a Sustentabilidade, uma abordagem renovada para apoiar os países da região na construção de estilos de desenvolvimento mais sustentáveis, por meio da coordenação de políticas para promover investimentos transformadores desses estilos. O Escritório da CEPAL em Brasília e o Centro de Gestão e Estudos Estratégicos (CGEE), com a participação de diversos parceiros, desenvolveram o projeto Grande Impulso Energia (Energy Big Push) Brasil, buscando evidências para a promoção de investimentos em inovação para uma transição energética em bases sustentáveis no país. O mergulho nas páginas desta publicação permitirá ao leitor ampliar sua compreensão sobre o panorama de investimentos da inovação em energia no Brasil, inclusive os volumes dispendidos em diferentes categorias de tecnologias energéticas e por tipo de investimento no período de 2013 a 2018, contribuindo para um grande impulso energético no país. |
| Keywords: | RECURSOS ENERGETICOS, POLITICA ENERGETICA, INVERSIONES, INNOVACIONES, INVESTIGACION Y DESARROLLO, DESARROLLO SOSTENIBLE, ENERGY RESOURCES, ENERGY POLICY, INVESTMENTS, INNOVATIONS, RESEARCH AND DEVELOPMENT |
| Date: | 2020–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col127:45908&r=all |
| By: | Kaukin, Andrey (Каукин, Андрей) (The Russian Presidential Academy of National Economy and Public Administration); Miller, Evgeniya (Миллер, Евгения) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The structure of the work is presented in four sections. The first section provides an overview of approaches and examples of the implementation of the atlas of the energy system in world practice. The second analyzes the current state and the main problems of the development of the energy system of Russia. The third section discusses the methodology for collecting and structuring data, as well as describes the architecture of the collected database on the energy system of Russia. In the fourth section, as a demonstration of the capabilities of the collected database, specific fuel consumption indicators for generating heat and electricity for each unit of Russian power plants are calculated, an average indicator for all stations in Russia, as well as an average indicator in a regional context. |
| Keywords: | energy, infrastructure industries, ecology, database, atlas of the energy system, the relationship of energy objects |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:042025&r=all |
| By: | Lorenzo Napolitano; Angelica Sbardella; Davide Consoli; Nicolo Barbieri; Francois Perruchas |
| Abstract: | The objective of this paper is to analyse the relationship between income inequality and environmental innovation. We use a complexity-based algorithm to compute an index of green inventive capacity in a panel of 57 countries over the period 1970–2010. The empirical analysis reveals that, on average, inequality is detrimental to countries’ capacity to engage complex green technologies knowledge bases. Using non-parametric methods allows us to further articulate this general finding and to uncover interesting non-linearities in the relationship between innovation and inequality |
| Keywords: | Complexity; Environmental Innovation; Inequality |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2020-11&r=all |
| By: | Lucas Bretschger (Center of Economic Research (CER-ETH), ETH Zurich, Switzerland) |
| Abstract: | The belief that stringent climate policies are very costly is widespread among political decision-makers and the public. The Trump administration stressed the cost argument as the motivation for the US withdrawal from the Paris Climate Agreement. However, such judgements ignore the economic bene?ts of policy changes and implicitly build on a misguided decomposition of environmental impacts using the IPAT and Kaya identities. The paper shows that this method predicts policy-induced income losses that are systematically and signi?cantly biased. I extend the decomposition analysis by introducing input substitution, which leads to the IPAST identity. By additionally incorporating a production approach, causal relationships between drivers of resource use, and a Romer-Kremer framework for technology development in a Schumpeterian tradition, I develop the IAT rule, a structural equation to easily estimate climate policy e¤ects. For a given decarbonization path, I use the di¤erent rules to calculate the projected income development at the global and country level. The use of the IAT approach instead of agnostic decomposition suggests that the costs of a stringent climate policy are much lower than normally expected, which supports deep decarbonization.. |
| Keywords: | Environmental protection; costs of climate policy; decarbonization; IPAT identity; IAT formula |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:20-341&r=all |
| By: | Surender Kumar (Centre for Development Economics, Delhi School of Economics); Shunsuke Managi (Urban Institute & Departments of Civil Engineering,Kyushu University) |
| Abstract: | The precipitous spread of COVID-19 has created a conflict between human health and economic well-being. To contain the spread of its contagious effect, India imposed the stringent lockdown, and then the stringency was relaxed to some extent in its succeeding phases. We measure social benefits of the lockdown in terms of improved air quality in Indian cities by quantifying the effects with city-specific slope coefficients. We find that the containment measures have resulted in improvement in air quality, but it is not uniform across cities and across pollutants. The level of PM2.5 decreases from about 6 to 25 percent in many cities. Moreover, we observe that partial relaxations do not help in resuming economic and social activities. It should also be noted that counter-virus measures could not bring levels of the emissions to WHO standards; it highlights the importance of role of green production and consumption activities. |
| JEL: | Q53 Q52 I18 I15 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:cde:cdewps:312&r=all |
| By: | Daniel Jeong-Dae Lee (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | As argued in Economic and Social Survey 2020, carbon pricing is an integral part of climate action. However, while there is growing momentum, it remains a relatively new concept especially in developing countries. This policy brief compares carbon taxes and emission trading system, the two most common forms of explicit carbon pricing. It also highlights the key elements to consider in establishing them. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb108&r=all |
| By: | Seydou Coulibaly (African Development Bank); Yannis Arvanitis (Governance and Public Financial Management Coordination, African Development Bank) |
| Abstract: | Recent oil and gas discoveries in Senegal have prompted the Government to review its 1998 Oil Code and adopt a new one in 2019. The revision was made with an eye on increasing revenue collection for the State with limited impacts on incentives for investment. In this paper, a three-pronged analysis of the new Senegalese Oil Code is presented. Firstly, a stand-alone analysis of the Code reveals that issues linked to investment cost control is crucial in order to determine a fair share of revenues for the country. Secondly, a comparative analysis of the new Code's fiscal provisions with those of peer countries suggests that it embeds tools to ensure revenues while still catering for investor needs. Lastly, revenue simulations comparing the 1998 and the 2019 codes reveal the high revenue potential of the latter. To ensure that Senegal reaps the full benefits the new oil code provisions, the paper suggests that the creation of an upstream oil and gas regulator with key technical capacities is crucial. Furthermore, articulating any future negotiating position around maintaining most of the provisions of the new 2019 oil code is a must for optimizing resource mobilization from oil and gas exploitation. |
| Keywords: | Gas, Oil, Contract, Law, Public revenue, Senegal JEL classification: E62, E64, K12, K32, L95, Q48 |
| Date: | 2020–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:adb:adbwps:2465&r=all |
| By: | Diemer, Andreas |
| Abstract: | There is little evidence on the relevance of social networks in the aggregate spatial diffusion of localised economic shocks. This paper uses novel data on the universe of online friendships in the US to uncover how plausibly exogenous surges in the local demand for jobs in the oil and gas industry can affect the economy of spatially distant but socially proximate places. Although most of the diffusion is limited to geographically proximate areas, social networks matter too. According to 2SLS estimates, a million dollar per capita increase in oil and gas extraction raises per capita wages by over 5,000 dollars for workers reporting their incomes in counties located as far as 1,200 km away from the drilling site, but strongly socially connected to it. This effect is likely explained by the relocation of transient workers within the industry, providing new aggregate evidence in support of the literature on job information networks. |
| Keywords: | social networks; fracking; spatial diffusion; job search |
| JEL: | J61 J64 L71 Q33 R12 R23 Z13 |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:105868&r=all |
| By: | Kalaitzi, Athanasia Stylianou; Chamberlain, Trevor William |
| Abstract: | This study examines the causal effects of traditional UAE exports on economic growth over the period 1981-2012, using a neoclassical production function augmented with fuel-mining exports and imports of goods and services. To investigate the existence of a long-run relationship between fuel-mining exports and economic growth, the study applies the Johansen cointegration test, while the direction of the short-run causality is examined by applying the Granger causality test in a vector error correction model framework. In addition, a modified Wald test in an augmented vector autoregressive model, developed by Toda and Yamamoto (1995), is used to investigate the existence of a long-run causality between the variables. The cointegration analysis confirms the existence of a long-run relationship between the variables, while fuel-mining exports are found to have a negative impact on economic growth. Moreover, the study finds that fuel-mining exports do not cause economic growth in the short-run or the long-run. |
| Keywords: | causality; economic growth; exports; UAE |
| JEL: | O47 F43 C32 |
| Date: | 2020–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:105207&r=all |
| By: | Olle Östensson |
| Abstract: | The paper reviews what we know about the possibilities of designing and implementing policy measures that raise the contribution of the extractive industries' production/consumption links to economic growth and wellbeing, and reviews how policies pursued by various governments have succeeded. It describes policies used in four areas: local content, employment, downstream processing, and infrastructure, and finds that the policies used have mostly not lived up to expectations. Finally, the outline of a broader, more coordinated approach is sketched out. |
| Keywords: | Downstream processing, Extractive industries, infrastrucuture, Local content |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2020-87&r=all |
| By: | ITF |
| Abstract: | This paper reviews opportunities for mitigating greenhouse gas emissions from Argentina’s transport sector. It also identifies the main challenges for that objective, specifically in freight transport. Actions taken at different levels of government are assessed and the impact of policies focused on other priorities - such as lowering logistic costs - is discussed. The paper also highlights what data on transport emissions are available for Argentina and which tools government agencies use for examining them. |
| Date: | 2020–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:75-en&r=all |
| By: | - |
| Abstract: | Today, Brazil and many countries around the world are seeking to stimulate economic recovery and improve people’s quality of life. In this context, the Economic Commission for Latin America and the Caribbean (ECLAC) of the United Nations has been developing the Big Push for Sustainability, a renewed approach to support the efforts of the countries of the region to design more sustainable development models, by coordinating policies to promote investments that will transform existing models. The ECLAC office in Brasilia and the Center for Strategic Studies and Management (CGEE), in conjunction with various partners, developed the Energy Big Push Brazil project, which provides evidence to promote innovation investments for a sustainable energy transition in Brazil. This publication aims to enhance readers’ understanding of the policy framework for energy innovation in Brazil, outlines the experiences of countries at the forefront of clean energy innovation and proposes a set of action lines that could accelerate investments in this area, contributing to an energy big push in Brazil. |
| Keywords: | RECURSOS ENERGETICOS, MEDIO AMBIENTE, INNOVACIONES TECNOLOGICAS, POLITICA ENERGETICA, PROTECCION AMBIENTAL, DESARROLLO SOSTENIBLE, INCENTIVOS FISCALES, ENERGY RESOURCES, ENVIRONMENT, TECHNOLOGICAL INNOVATIONS, ENERGY POLICY, ENVIRONMENTAL PROTECTION, SUSTAINABLE DEVELOPMENT, TAX INCENTIVES |
| Date: | 2020–08–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col127:45907&r=all |
| By: | Mireille Chiroleu-Assouline (PSE - Paris School of Economics, UP1 - Université Panthéon-Sorbonne); Mouez Fodha (PSE - Paris School of Economics, UP1 - Université Panthéon-Sorbonne); Yassine Kirat (PSE - Paris School of Economics, UP1 - Université Panthéon-Sorbonne) |
| Abstract: | Among the ten countries with the highest carbon intensity, six are natural resource-rich countries. This suggests the existence of a carbon curse: resource-rich countries would tend to follow more carbon-intensive development paths than resource-poor countries. We investigate this assumption empirically using a panel data method covering 29 countries (OECD and BRIC) and seven sectors over the 1995-2009 period. First, at the macroeconomic level, we find that the relationship between national CO 2 emissions per unit of GDP and abundance in natural resources is U-shaped. The carbon curse appears only after the turning point. Second, we measure the impact of resource abundance on sectoral emissions for two groups of countries based on their resource endowments. We show that a country rich in natural resources pollutes relatively more in resource-related sectors as well as all other sectors. Our results suggest that the debate on climate change mitigation should rather focus on a comparison of resource-rich countries versus resource-poor countries than the developed-country versus developing-country debate. |
| Keywords: | carbon curse,carbon intensity,resource-rich economies |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-02902393&r=all |
| By: | Loïc Berger; Massimo Marinacci (Bocconi University [Milan, Italy]) |
| Abstract: | We review recent models of choices under uncertainty that have been proposed in the economic literature. In particular, we show how different concepts and methods of economic decision theory can be directly useful for problems in environmental economics. The framework we propose is general and can be applied in many different fields of environmental economics. To illustrate, we provide a simple application in the context of an optimal mitigation policy under climate change. |
| Keywords: | Ambiguity,non-expected utility,model uncertainty,climate change |
| Date: | 2020–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02914088&r=all |
| By: | Shahbaz, Muhammad; Sinha, Avik; Kontoleon, Andreas |
| Abstract: | This study contributes by investigating the association between scale, technique and composition effects on energy consumption by considering financial development, oil prices and globalization as potential determinants of economic growth and energy demand. We have applied recent cointegration considering cross-sectional dependence and structural breaks introduced by Westerlund and Edgerton (2008). Furthermore, FMOLS, DOLS and Cup-FMOLS are applied to examine impact of scale effect, technique effect, composition effect, financial development, oil prices and economic globalization on energy consumption. The empirical results show that variables are cointegrated for long run relationship. Scale effect and technique effect are negatively and positively linked with energy consumption. Composition effect and economic globalization stimulate energy demand. Contrarily, financial development and oil prices decline energy consumption. This empirical analysis helps policy makers of developing economies in designing their comprehensive environmental policy for sustainable economic development in long-run. |
| Keywords: | Scale and Technique Effects, Globalization, Energy Consumption |
| JEL: | Q4 |
| Date: | 2020–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:102111&r=all |
| By: | Cathrine Hagem; Michael Olaf Hoel; Thomas Sterner |
| Abstract: | We analyse two mechanism designs for refunding emission payments to polluting firms: output-based refunding (OBR) and expenditure-based refunding (EBR). In both instruments, emission fees are returned to the polluting industry, typically making the policy more politically acceptable than a standard tax. The crucial difference between OBR and EBR is that the fees are refunded in proportion to output in the former but in proportion to the firms’ expenditure on abatement technology equipment in the latter. To achieve the same abatement target as a standard tax, the fee level in the OBR design is higher, whereas the fee level in the EBR design is lower. The use of OBR and EBR may lead to large differences in the distribution of output and costs across firms. Both designs imply a cost-ineffective provision of abatement, as firms put relatively too much effort into reducing emissions through abatement technology compared with reducing output. However, a standard tax may be politically infeasible and maintaining output may be seen as a political advantage by policymakers if they seek to avoid activity reduction in the regulated sector. |
| Keywords: | emission payments, carbon tax, refunding, CO2, NOX, policy design |
| JEL: | Q28 Q25 H23 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8364&r=all |
| By: | Ziqiao Chen; Giovanni Marin; David Popp; Francesco Vona |
| Abstract: | As nations struggle to restart their economy after COVID-19 lockdowns, calls to include green investments in a pandemic-related stimulus are growing. Yet little research provides evidence of the effectiveness of a green stimulus. We begin by summarizing recent research on the effectiveness of the green portion of the 2009 American Recovery and Reinvestment Act on employment growth. Green investments are most effective in communities whose workers have the appropriate “green” skills. We then provide new evidence on the skills requirements of both green and brown occupations, as well as from occupations at risk of job losses due to COVID-19, to illustrate which workers are most likely to benefit from a pandemic-related green stimulus. We find similarities between some energy sector workers and green jobs, but a poor match between green jobs and occupations at risk due to COVID-19. Finally, we provide suggestive evidence on the potential for job training programs to help ease the transition to a green economy. |
| Keywords: | green subsidies, green stimulus, American Recovery Act, heterogeneous effect, distributional impacts |
| JEL: | E24 E62 H54 H72 Q58 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8419&r=all |
| By: | Jamaledini, Ashkan; Soltani, Ali; Khazaei, Ehsan |
| Abstract: | Economic energy management of grid-connected microgrid has been widely investigated. However, due to the binary variables of the generation unit’s status, the optimal result of the grid-connected microgrid is very hard. Thus, in this paper, the region search optimization algorithm (RSOA) is developed and adopted for the energy management of the grid-connected microgrid. The developed technique has higher convergence speed and accuracy, compared to the well-known heuristic techniques, such as genetic algorithm and particle swarm optimization. Results shows the effectiveness of the developed model. |
| Keywords: | Grid-connected microgrid, economic energy management, industry microgrid, |
| JEL: | A1 A30 G1 G10 G14 L0 O1 P0 |
| Date: | 2020–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:102094&r=all |
| By: | Sanguinetti, Angela; Ferguson, Beth; Oka, Jamie; Alston-Stepnitz, Eli; Kurani, Kenneth |
| Abstract: | Robo-taxis (automated vehicles operating in a ride-hailing model) have the potential to improve mobility while reducing traffic, emissions, and energy use. However, such outcomes depend largely on increasing riders per vehicle. Public policy that incentivizes industry to design robo-taxis to support ride-pooling may be critical to achieving positive outcomes. This research reviews current shared automated vehicle designs and literature related to potential consumer risks and benefits of ride-pooling in robo-taxis in order to articulate potential design solutions to promote pooling. |
| Keywords: | Social and Behavioral Sciences, Automated vehicles, Ride-sharing, Ride-pooling, Design |
| Date: | 2020–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt65s3m92w&r=all |
| By: | Vogt, Angelika; Hagen, Achim; Eisenack, Klaus |
| Abstract: | Climate policies can target either the demand or the supply of fossil fuels. While demand-side policies have been analyzed in the literature and applied in policy-making, supply-side policies, e.g. deposit policies, are a promising option and a recent research focus. In this paper we study deposit markets for two fuels that differ in emission intensity. We find that, with strategic action on the deposit markets, deposit policies are inefficient due to price manipulations within and between both deposit markets. Regarding the political economy of deposit policies, they generate more welfare for all countries if applied to both fuels as opposed to one or none. Further, for perfectly segmented fuel markets, importing countries do not purchase deposits of a sufficiently clean fuel. If fuels are substitutes and strongly differ in emission intensity, countries do not buy deposits of a relatively clean fuel. Finally, deposit markets can induce countries selling deposits to choose a cleaner fuel mix. |
| Keywords: | Agricultural and Food Policy, Demand and Price Analysis, Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:huiawp:304708&r=all |
| By: | Suyunchev, Marat (Суюнчев, Марат) (The Russian Presidential Academy of National Economy and Public Administration); Repetyuk, Sergey (Репетюк, Сергей) (The Russian Presidential Academy of National Economy and Public Administration); Fayn, Boris (Файн, Борис) (The Russian Presidential Academy of National Economy and Public Administration); Tregubova, Ekaterina (Трегубова, Екатерина) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | This report, prepared according to the results of the research work “Development of approaches to the formation of a common electric energy market of the Eurasian Economic Union (EAEU)”, explores the features of the organization of electric energy and capacity markets in the countries of the Eurasian Economic Union and performs their comparative analysis in part technological and commercial infrastructure. The world experience of integration of electric power markets is considered, the features of the main models for the formation of common electricity markets abroad are identified. Based on the results of the study, an assessment of the possible effect of organizing a common electricity market for the Russian Federation was made and practical proposals were formulated to improve approaches to the formation of a common EAEU electricity market. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:042035&r=all |
| By: | Nathan S. Balke; Xin Jin; Mine K. Yücel |
| Abstract: | We build and estimate a dynamic, structural model of the world oil market in order to quantify the impact of the shale revolution. We model the shale revolution as a dramatic decrease in shale production costs and explore how the resultant increase in shale production affects the level and volatility of oil prices over our sample. We find that oil prices in 2018 would have been roughly 36% higher had the shale revolution not occurred and that the shale revolution implies a reduction in current oil price volatility around 25% and a decline in long-run volatility of over 50%. |
| Keywords: | oil price; shale; OPEC |
| JEL: | Q41 C32 |
| Date: | 2020–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:88323&r=all |
| By: | Liang Lu (Centre for Competition Policy and Norwich Business School, University of East Anglia); Catherine Waddams Price (Centre for Competition Policy and Norwich Business School, University of East Anglia) |
| Abstract: | Adapting energy distribution systems to new patterns of energy generation and usage often creates tensions between environmental and equity objectives by challenging traditional distributional arrangements and associated charging methodologies. We discuss the principles of fairness and efficiency which might be applied to designing tariffs for residential consumers with self-generation opportunities, and identify the main examples of charging methodologies used in practice. Based on this experience, we develop a stylised model to simulate the effects of a wide range of tariff designs on households with diverse energy use profiles and ability to self-generate. We observe a clear trade-off between incentives to self-generate and distributional concerns across tariff scenarios and show how a net metering scheme may aggravate the trade-off. |
| Keywords: | Distributed Generation; Electricity; Fairness; Network; Renewables; Tariff |
| JEL: | D61 L51 L94 L97 Q41 Q42 |
| Date: | 2019–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:uea:ueaccp:2019_03&r=all |
| By: | Daniel L. Mendoza (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah; Department of Atmospheric Sciences, University of Utah); Cheryl S. Pirozzi (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah); Erik T. Crosman (Department of Life, Earth, and Environmental Sciences, West Texas A&M University); Theodore G. Liou (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah; Center for Quantitative Biology, University of Utah); Yue Zhang (Division of Epidemiology, Department of Internal Medicine, University of Utah School of Medicine); Jessica J. Cleeves (Center for Science and Mathematics Education, University of Utah); Stephen C. Bannister (Department of Economics, University of Utah); William R. L. Anderegg (School of Biological Sciences, University of Utah); Robert Paine III (Division of Respiratory, Critical Care and Occupational Pulmonary Medicine, School of Medicine, University of Utah) |
| Abstract: | High air pollution levels are associated with school absences. However, low level pollution impact on individual school absences are under-studied. We modelled PM2.5 and ozone concentrations at 36 schools from July 2015 to June 2018 using data from a dense, research grade regulatory sensor network. We determined exposures and daily absences at each school. We used generalized estimating equations model to retrospectively estimate rate ratios for association between outdoor pollutant concentrations and school absences. We estimated lost school revenue, productivity, and family economic burden. PM2.5 and ozone concentrations and absence rates vary across the School District. Pollution exposure were associated with as high a rate ratio of 1.02 absences per ug/m$^3$ and 1.01 per ppb increase for PM2.5 and ozone, respectively. Significantly, even PM2.5 and ozone exposure below regulatory standards ( |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2007.09230&r=all |
| By: | ITF |
| Abstract: | This report evaluates the costs and benefits of replacing postal delivery motorcycles with electric vehicles in eight Korean cities. It compares operating costs, safety performance, and environmental impacts based on data collected from a field trial with both vehicle types. In addition to the economic analysis, qualitative aspects are also discussed based on the findings of a focus group study. The results from the pilot programme provide an evidence base for policy initiatives in the delivery sector in Korea and beyond. |
| Date: | 2020–08–19 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:73-en&r=all |
| By: | Jyoti Bisbey (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | In the face of a mounting climate-emergency, the Asia-Pacific region needs to raise ambitions and accelerate actions towards transitioning to a low-carbon economy. While there is limited information about greenhouse emissions (GHG) from production activities, the region’s status as the engine of the world’s economy suggests that production contributes significantly to GHG emissions. This implies that businesses are key stakeholders in the decarbonization process. Indeed, to facilitate the transformation to a low-carbon economy, businesses need to take action and step up their commitments towards decarbonization. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb104&r=all |
| By: | Kejia Yang (Science Policy Research Unit (SPRU), University of Sussex); Johan Schot; Bernhard Truffer |
| Abstract: | A limited set of studies have addressed how actors shape the directionality of sustainability transitions. Building on recent institutional work literature, this article explores how specific institutional activities developed by both niche and regime actors across spatial levels shape the directions of transition. We examine two cases with contrasting directionalities: solar PV in the provinces of Inner Mongolia and Jiangsu, both located in China. The former developed PV as part of the large-scale centralised power system and the latter focused on PV development as a core element of an alternative distributed form of power generation. We investigate provincial differences as well as the state-provincial dynamics. The article therefore develops a multi-scalar understanding of institutional work. Our research findings suggest three aspects have been key for understanding the divergent patterns: the specific portfolios of enacted institutional work, the type of interactions between niche and regime actors and the selective leveraging of institutional conditions at national by provincial actors. Based on these findings we formulate four propositions and propose a novel conceptual framework to investigate how actors shape the directionality of sustainability transition. |
| Keywords: | Actors; Institutional work; Directionality; Sustainability transition; Solar PV development |
| Date: | 2020–08 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2020-14&r=all |
| By: | Michael Greenstone; Guojun He; Ruixue Jia; Tong Liu |
| Abstract: | We examine the introduction of automatic air pollution monitoring, which is a central feature of China’s “war on pollution.” Exploiting 654 regression discontinuity designs based on city-level variation in the day that monitoring was automated, we find that reported PM 10 concentrations increased by 35% immediately post–automation and were sustained. City-level variation in underreporting is negatively correlated with income per capita and positively correlated with true pre-automation PM 10 concentrations. Further, automation’s introduction increased online searches for face masks and air filters, suggesting that the biased and imperfect pre-automation information imposed welfare costs by leading to suboptimal purchases of protective goods. |
| JEL: | Q53 Q55 |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27502&r=all |
| By: | Jyoti Bisbey (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | In the face of a mounting climate-emergency, the Asia-Pacific region needs to raise ambitions and accelerate actions towards transitioning to a low-carbon economy. While there is limited information about greenhouse emissions (GHG) from production activities, the region’s status as the engine of the world’s economy suggests that production contributes significantly to GHG emissions. This implies that businesses are key stakeholders in the decarbonization process. Indeed, to facilitate the transformation to a low-carbon economy, businesses need to take action and step up their commitments towards decarbonization. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb105&r=all |
| By: | Okwu, Andy; Akpa, Emeka; Oseni, Isiaq; Obiakor, Rowland |
| Abstract: | Oil export constitutes the major source of external revenue, and exchange rate determines the naira amount of the revenue and, thus, is perceived to affect aggregate consumption expenditure in Nigeria. This paper employed Nonlinear ARDL approach to examine the short-run and long-run asymmetric effects of oil export earnings and exchange rate on aggregate consumption in Nigeria from 1981 to 2016. Variables of interest in the paper were oil export earnings (OEE), consumer price index (CPI) as proxy for inflation, nominal effective exchange rate (NEER) and final consumption expenditure (FCE). Based on bounds testing long-run cointegration among the variables was established. Furthermore, Wald test was used to establish the presence of asymmetry between FCE and OEE and NEER. Results from the study indicated that in the short-run, negative shocks to exchange rate exerted significant positive effect on consumption, and negative at a higher lag, while positive shocks to exchange rate exerted negative effect on consumption. Still in the short-run, negative shocks until the first lag exerted a negative and significant effect on consumption; at lag two, the effect became positive and insignificant. In the long-run, positive and negative shocks to both exchange rate and oil export earnings exerted both positive and significant effects on consumption. |
| Keywords: | Oil export, Aggregate consumption, Asymmetry, Nonlinear ARDL |
| JEL: | C22 E21 Q40 |
| Date: | 2020–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:102080&r=all |
| By: | Morgan Kelly; Joel Mokyr; Cormac Ó Gráda |
| Abstract: | For contemporaries, Britain’s success in developing the technologies of the early Industrial Revolution rested in large part on its abundant supply of artisan skills, notably in metalworking. In this paper we outline a simple process where successful industrialization occurs in regions that start with low wages and high mechanical skills, and show that these two factors strongly explain the growth of the textile industry across the 41 counties of England between the 1760s and 1830s. By contrast, literacy and access to capital have no power in predicting industrialization, nor does proximity to coal. Although unimportant as a source of power for early textile machinery, Britain’s coal was vital as a source of cheap heat that allowed it over centuries to develop a unique range of sophisticated metalworking industries. From these activities came artisans, from watchmakers to iron founders, whose industrial skills were in demand not just in Britain but across all of Europe. Against the view that living standards were stagnant during the Industrial Revolution, we find that real wages rose sharply in the industrializing north and collapsed in the previously prosperous south. |
| Keywords: | Skilled labour; Power sources; Market integration; Standard of living; Industrial Revolution; Great Britain |
| Date: | 2020–06 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:202016&r=all |