nep-ene New Economics Papers
on Energy Economics
Issue of 2020‒11‒02
47 papers chosen by
Roger Fouquet
London School of Economics

  1. Kill Bill or Tax: An Analysis of Alternative CO2 Price Floor Options for EU Member States By Christoph Böhringer; Carolyn Fischer
  2. Unilateral CO2 Reduction Policy with More Than One Carbon Energy Source By Julien Xavier Daubanes; Fanny Henriet; Katheline Schubert
  3. Analyzing Nonlinear Impact of Economic Growth Drivers on CO2 Emissions: Designing an SDG Framework for India By Shahbaz, Muhammad; Sharma, Rajesh; Sinha, Avik; Jiao, Zhilun
  4. Experience Rates of Low-Carbon Domestic Heating Technologies in the United Kingdom By Renaldi, Renaldi; Hall, Richard; Jamasb, Tooraj; Roskilly, Anthony P.
  5. Does access to electricity affect poverty? Evidence from Côte d'Ivoire By Arouna Diallo; Richard Kouame Moussa
  6. Economic damages from on-going climate change imply deeper near-term emission cuts By Schultes, Anselm; Piontek, Franziska; Soergel, Bjoern; Rogelj, Joeri; Baumstark, Lavinia; Kriegler, Elmar; Edenhofer, Ottmar; Luderer, Gunnar
  7. Efficient spatial allocation of wind power plants given environmental externalities due to turbines and grids By Kristine Grimsrud; Cathrine Hagem; Arne Lind; Henrik Lindhjem
  8. Quantifying the effect of regulated volumetric electricity tariffs on residential PV adoption under net metering scheme By Bruno MORENO RODRIGO DE FREITAS
  9. Impact of Energy Mix on Nitrous Oxide Emissions: An Environmental Kuznets Curve approach for APEC countries By Avik, Sinha; Tuhin, Sengupta
  10. Factors affecting renters’ electricity use: more than split incentives By Rohan Best; Paul J. Burke; Shuhei Nishitateno
  11. Implications of cheap oil for emerging markets By Alain Kabundi; Franziska Ohnsorge
  12. Designing fossil fuel subsidies reforms in OECD and G20 countries: A robust sequential approach methodology By Assia Elgouacem
  13. Clean versus Dirty Energy: Empirical Evidence from Fuel Adoption and Usage by Households in Ghana By Alhassan A. Karakara; Evans S. Osabuohien
  14. Incentive regulation of electricity networks under large penetration of distributed energy resources – selected issues By Gert Brunekreeft; Julia Kusznir; Roland Meyer; Madoka Sawabe; Toru Hattori
  15. Baptists and Bootleggers in the Biodiesel Trade: EU-Biodiesel (Indonesia) By Carolyn Fischer; Timothy Meyer
  16. From fundamentals to financial assets: the evolution of understanding price formation in the EU ETS By Friedrich, Marina; Mauer, Eva-Maria; Pahle, Michael; Tietjen, Oliver
  17. One Year of I-SEM: Preliminary Assessment of Capacity Mechanism Outcomes By Filippo Del Grosso
  18. Green Hydrogen: the Holy Grail of Decarbonisation? An Analysis of the Technical and Geopolitical Implications of the Future Hydrogen Economy By Scita, Rossana; Raimondi, Pier Paolo; Noussan, Michel
  19. Are Consumers Abandoning Diesel Automobiles because of Contrasting Diesel Policies? Evidence from the Korean Automobile Market By Yoo, Sunbin; Koh, Kyung Woong; Yoshida, Yoshikuni
  20. How does Climate Change Affect the Transition of Power Systems: the Case of Germany By Golub, Alexander; Govorukha, Kristina; Mayer, Philip; Rübbelke, Dirk
  21. Monthly Report No. 04/2020 By Andrei V. Belyi; Julia Grübler; Peter Havlik; Grzegorz Kolodko
  22. Renewable Energy Consumption-Economic Growth Nexus in G7 Countries: New Evidence from a Nonlinear ARDL Approach By Shahbaz, Muhammad; Khraief, Naceur; L. Czudaj, Robert
  23. Convergence in road transport CO2 emissions in Europe By Ángel Marrero; Gustavo A. Marrero; Marina González; Jesús Rodríguez-López
  24. Fuel switching By Richard S.J. Tol
  25. Cost-efficient transition to clean energy transportation services By Comello, Stephen; Glenk, Gunther; Reichelstein, Stefan
  26. Hybrid Modelling Approaches for Forecasting Energy Spot Prices in EPEC market By Tahir Miriyev; Alessandro Contu; Kevin Schafers; Ion Gabriel Ion
  27. Are there rebound effects from electric vehicle adoption? Evidence from German household data By Huwe, Vera; Gessner, Johannes
  28. What can be learned from the free destination option in the LNG imbroglio ? By Amina Baba; Anna Creti; Olivier Massol
  29. Enhancing Natural Resources Management in Zimbabwe By Chigumira, Gibson; Dube, Cornelius; Mudzonga, Evengelista; Chiwunze, Gamuchirai; Matsika, Wellington
  30. Saving energy By Richard S.J. Tol
  31. Rules vs. Discretion in Cap-and-Trade Programs: Evidence from the EU Emission Trading System By Marina Friedrich; Sébastien Fries; Michael Pahle; Ottmar Edenhofer
  32. Movements of oil prices and exchange rates in China and India: New evidence from wavelet-based, non-linear, autoregressive distributed lag estimations By Khraief, Naceur; Shahbaz, Muhammad; Kumar Mahalik, Mantu; Bhattacharya, Mita
  33. Banking deregulation and household consumption of durables By Damar, H. Evren; Lange, Ian; McKennie, Caitlin; Moro, Mirko
  34. Effects of rescaling the EU energy label on household preferences for top-rated appliances By Faure, Corinne; Guetlein, Marie-Charlotte; Schleich, Joachim
  35. Natural resources, institutions, and economic transformation in Mozambique By Jose Jaime Macuane; Carlos Muianga
  36. Comptabilité économique de la soutenabilité climatique By J.-M. GERMAIN; T. LELLOUCH
  37. Taxes vs permits By Richard S.J. Tol
  38. Does Open Source Pay off in the Plug-in Hybrid and Electric Vehicle Industry? A Study of Tesla's Open-Source Initiative By Yihan Yan
  39. Trade and the equivalence between environmental tax and quota By Li, Gang
  40. Efficient flow pollution By Richard S.J. Tol
  41. The determinants of the inequality in CO2 emissions per capita between developing countries By Emilio Padilla Rosa; Evans Jadotte
  42. Environmental justice By Richard S.J. Tol
  43. Electricity Sector Reform Performance in Sub-Saharan Africa: A Parametric Distance Function Approach By Asantewaa, Adwoa; Jamasb, Tooraj; Llorca, Manuel
  44. Policy implications of the Environmental Kuznets curve By Richard S.J. Tol
  45. CCS and geoengineering By Richard S.J. Tol
  46. Fuel Poverty: Potentially Inconsistent Indicators and Where Next? By David Deller; Glen Turner; Catherine Waddams Price
  47. Pétrole : chronique d’un effondrement By Céline Antonin

  1. By: Christoph Böhringer; Carolyn Fischer
    Abstract: Several EU member states are exploring options for setting minimum domestic carbon prices within the EU Emission Trading System (ETS). First, a “TAX” policy would introduce a carbon tax equal to the difference between the prevailing ETS price and the targeted minimum price. Second, a national auction reserve price would “KILL” allowances by invalidating them until the ETS price equalled the national minimum price. Third, a government could require domestic overcompliance and “BILL” covered entities for extra allowances per ton of emissions, thereby increasing demand for allowances and pulling up the ETS price. We explore the implications of these policy options on national and ETS-wide carbon prices, revenues from emissions allowances, emissions, and economic welfare. We find that a national government’s preferred unilateral policy will depend on the extent to which it values the fiscal benefits of revenues, which favor TAX or to a lesser degree BILL, versus climate benefits, which favor KILL and also BILL, particularly for jurisdictions with more emissions to leverage for overcompliance. Our analysis can be generalized to other multilateral cap-and-trade systems where participants pursue more stringent internal emission pricing through unilateral policies.
    Keywords: CO2 price floor, emissions trading, carbon tax
    JEL: H23 Q58 D62
    Date: 2020
  2. By: Julien Xavier Daubanes; Fanny Henriet; Katheline Schubert
    Abstract: We examine an open economy’s strategy to reduce its carbon emissions by replacing its consumption of coal—very carbon intensive—with gas—less so. Unlike the standard theoretical approach to carbon leakage, we show that unilateral CO2 reduction policies generate a higher leakage rate in the presence of more than one carbon energy source, and may turn counterproductive, ultimately increasing world emissions. We establish testable conditions as to whether a unilateral tax on domestic CO2 emissions increases the domestic exploitation of gas, and whether such a strategy increases global emissions. We also characterize this strategy’s implications for climate policy in the rest of the world. Finally, we present an illustrative application of our results to the US.
    Keywords: unilateral climate policy, carbon emission reduction, shale gas, gas-coal substitution, coal exports, carbon leakage, US policy, counter-productive policy
    JEL: Q58 H73 F18
    Date: 2020
  3. By: Shahbaz, Muhammad; Sharma, Rajesh; Sinha, Avik; Jiao, Zhilun
    Abstract: Several Asian countries are facing challenges regarding accomplishment of the objectives of Sustainable Development Goals (SDGs), and India is facing a similar situation. Following this, this study talks about designing an SDG framework for India, which can be used as a benchmark for the other Asian countries. In this pursuit, this study looks into whether per capita income, energy use, trade openness, and oil price have any impact on CO2 emissions between 1980 and 2019. The nonlinear autoregressive distributed lag approach proves that the fluctuations in independent variables have an asymmetric long-term impact on CO2 emissions. The results reveal that the prevailing economic growth pattern in India is environmentally unsustainable, because of its dependence on fossil fuel-based energy consumption and imported crude oil. Import substitution has been identified as one of the first stepping stones to address this issue, and accordingly, a multipronged SDG framework has been designed based on the direct and extended version of the study outcomes. While the Central policy framework shows a way to address SDG 7, SDG 8, SDG 12, and SDG 13, the Tangential policy framework shows the way to sustain the Central policy framework by addressing SDG 4.
    Keywords: CO2, Energy, India, NARDL, Oil Prices, SDG
    JEL: Q5
    Date: 2020–10–02
  4. By: Renaldi, Renaldi (Department of Engineering Science, University of Oxford); Hall, Richard (Energy Transitions Ltd.); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Roskilly, Anthony P. (Department of Engineering, Durham University)
    Abstract: This paper presents the experience curves of low-carbon domestic heating technologies in the United Kingdom between 2010 and 2019. The deployment of these technologies has been acknowledged as one of the main actions toward decarbonising the heating sector. In the UK, several deployment oriented policies have been implemented, such as the Renewable Heat Incentive (RHI). In this study, we focus on the following domestic heating technologies: air-source heat pumps, ground-source heat pumps, solar thermal collectors, and biomass boilers. Condensing combination gas boilers are also included to act as the baseline/incumbent technology. Using UK installation cost data for 2010 to 2019, we found that low-carbon heating technologies had experience rates of; air source heat pumps -2.3± 5%, ground source heat pumps -0.8±4%, biomass boilers 0.1±2%, and solar thermal 13±5%, all significantly lower than the re-ported learning rates of similar technologies in the literature. Furthermore, we found that gas boilers have reached the floor price at approximately £30/kW. The resulting experience rates can be used in energy economics models and to inform policymakers in developing further deployment programs.
    Keywords: Experience curves; Learning curves; Experience rates; Low-carbon heating; Heat decarbonisation
    JEL: O33 P18 Q55
    Date: 2020–10–05
  5. By: Arouna Diallo (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique); Richard Kouame Moussa (ENSEA - Ecole nationale supérieure de statistique et d'économie appliquée [Abidjan])
    Abstract: This paper investigates the effect of household's access to electricity on poverty in Côte d'Ivoire and how it has varied over the last two decades. The study shows a positive and significant effect of access to electricity on household consumption per capita. Access to electricity increases household consumption per capita by 5.2 to 23.3 percent. The results also highlight that the lower the regional rate of access to electricity, the higher the regional poverty rate. Policy should be designed to expand the access to electricity. Promoting renewable energy, improving the institutional framework, spreading the access to Solar Home System in off-grid areas and implementing incentive measures such as the reduction of customs and tax taxes on renewable energy equipment are measures that might help to combat energy and monetary poverty.
    Date: 2020–09–24
  6. By: Schultes, Anselm; Piontek, Franziska; Soergel, Bjoern; Rogelj, Joeri; Baumstark, Lavinia; Kriegler, Elmar; Edenhofer, Ottmar; Luderer, Gunnar
    Abstract: Current analyses of pathways limiting global warming to well below 2°C, as called for in the Paris Agreement, do not consider the climate impacts already occurring below 2°C. Here we show that accounting for these damages significantly increases the near-term ambition of transformation pathways. We use econometric estimates of climate damages on GDP growth and explicitly model the uncertainty in the time that damages persist and in the climate sensitivity. We find that carbon prices in 2030 are higher compared to the case where only the 2°C is considered; the median value is $115 per tonne of CO2. The long-term persistence of damages, while highly uncertain, is a main driver of optimal near-term climate policy. Accounting for damages on economic growth increases the gap between the currently pledged nationally determined contributions and the welfare-optimal 2030 emissions for 2°C by two thirds, compared to pathways considering the 2°C limit only.
    Keywords: Climate change; Climate change mitigation; Climate change impacts; Climate policy; International climate policy; Paris Agreement; Transformation pathways;
    JEL: F53 O13 Q5 Q54 Q56
    Date: 2020–08–15
  7. By: Kristine Grimsrud; Cathrine Hagem (Statistics Norway); Arne Lind; Henrik Lindhjem
    Abstract: Negative environmental externalities associated with wind power plants depend on the physical characteristics of turbine installations and associated power lines and the geographical siting. We derive analytically an environmental taxation scheme for achieving the efficient spatial distribution of new wind power production, taking account of both production and environmental costs. Further, we illustrate the analytical results by means of a detailed numerical energy system model for Norway. We show that a given target for wind power production can be achieved at a significantly lower social cost by implementing a tax scheme, compared to the current situation with no environmental taxes. We also show that the environmental costs associated with both turbines and power lines were crucial to the efficient spatial allocation of wind power plants.
    Keywords: Wind power; wind power plant; renewable energy; environmental externalities; environmental taxes; energy system model
    JEL: H23 Q42 Q48 Q51
    Date: 2020–08
    Abstract: Among the major challenges for the power systems of the future, one may find the arise of a new approach of electricity production - the Distributed Generation (DG) systems - and photovoltaics (PV) is the main technology for this new approach. In this scenario, a new electricity market agent appeared - the prosumer - consumers that can also produce their own energy. The retail price is one of the main factors that encourages PV systems adoption under a net metering scheme. The present work shows an investigation on the influence of regulated electricity tariffs as volumetric charges structure on the residential DG PV systems adoption in a developing country context. I use a panel data from 2013-2017 with 5570 municipalities in Brazil, having as response variable the number of new PV installations and as explanatory variable the electricity tariffs among 105 different distribution companies. The results imply that for each one BRL cent of tariff increase, there will be an expansion of about 5.3% in new residential PV projects in the following year.
    Keywords: distributed generation, prosumer, residential PV adoption, net metering, volumetric electricity tariffs, panel data
    Date: 2020–10
  9. By: Avik, Sinha; Tuhin, Sengupta
    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 analyzed 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: Q53
    Date: 2019
  10. By: Rohan Best; Paul J. Burke; Shuhei Nishitateno
    Abstract: This paper uses data from the 2015 Residential Energy Consumption Survey to explore the extent to which renters’ electricity use in the United States exceeds that of otherwise similar non-renters. Renting households are found to use approximately 9% more electricity than non-renters when controlling for location, socioeconomic, and many appliance-quantity controls. There are multiple factors that explain this extra electricity use, including inferior energy efficiency of appliances, behavioural factors, differences in bill payment responsibilities, and additional reliance by renters on electric space and water heaters. The paper finds that none of these factors are dominant. The phenomenon of renters’ (conditionally) higher electricity use is thus best understood as one that emerges from multiple sources.
    Keywords: Split incentives, rent, electricity consumption, efficiency, household survey, United States
    Date: 2020–09
  11. By: Alain Kabundi; Franziska Ohnsorge
    Abstract: The COVID-19-triggered collapse in oil prices in March and April 2020 was the seventh, and by far the most severe, in a series of such collapses since 1970. This paper, first, compares this most recent collapse and its drivers with previous ones in an event study. It finds that it was associated with an exceptionally severe plunge in oil demand. Second, in a local projections model, this paper estimates the implications of demand- and supply-driven oil price collapses for growth in emerging markets and developing economies (EMDEs). The paper finds that steep oil price collapses were associated with significant and lasting output losses in energy-exporting EMDEs but no meaningful output gains in energy-importing EMDEs. These results are robust to multiple robustness checks.
    Keywords: Oil price decline, COVID-19 pandemic, macroeconomic implications, supply factors, demand factors, local projections model.
    JEL: Q40 Q41 Q43 F40 E32
    Date: 2020–09
  12. By: Assia Elgouacem
    Abstract: Reform of support for fossil fuels is often identified as a priority for a country’s fiscal consolidation efforts and for climate action to align financial flows with low-carbon pathways. Its implementation, however, remains elusive for many countries as they face seemingly irreconcilable policy agendas of economic growth and sustainability coupled with potential political backlash against austerity and rising costs. This paper provides a sequential approach that may assist in providing support for the analysis to a well-informed reform process. Deploying the suggested tools can help policy makers to identify the most distorting government support measures and alternative or complementary policies that deliver the sought-after objectives more efficiently and effectively. The work presented here draws on the OECD’s longstanding experience and tradition in measuring and tracking support measures for fossil fuels, primarily in its Inventory of Support Measures for Fossil Fuels (Inventory hereafter) and accompanying reports.
    Keywords: coal, energy, fossil fuel subsidies, fossil fuel subsidy reform, fossil fuels, gas, government support, oil, reform, subsidies, tax expenditures, tax incentives
    JEL: H23 E64 Q38 Q54 Q58
    Date: 2020–10–23
  13. By: Alhassan A. Karakara (CEPDeR, Covenant University, Ota, Nigeria); Evans S. Osabuohien (CEPDeR, Covenant University, Ota, Nigeria)
    Abstract: There are few studies on the determinants of energy consumption of households in Africa, particularly in Ghana. Thus, this study identifies the drivers of households’ fuel consumption for domestic purposes and examines two fuel categories (‘clean’ fuels versus ‘dirty’ fuels). The study used Demographic and Health Survey data that has a sample of 11,835 households across Ghana. Binary categorical models (binary logistic and binary probit) were used to investigate whether a household uses ‘clean fuel’ or ‘dirty fuel’, which are estimated with socio-economic variables and spatial disparity (regional location). The results suggest that households’ energy consumption is affected by socio-economic variables and rural households are more deprived than urban households in adopting clean fuels. Also, male-headed households have a higher likelihood than female-headed households to adopt clean fuels. Many households choose clean fuels for lighting than they do for cooking as wealth status improves. However, solid fuels such as charcoal and firewood remain the dominant fuel used for cooking by the majority of households. The use of these dirty fuels could hamper the health status of households because of indoor pollution. The study recommends that policies should be geared towards the provision of clean and better energy sources to households.
    Keywords: ‘Clean’ fuels, ‘Dirty’ fuels, household fuel adoption, household fuel consumption, Energy usage, Ghana.
    JEL: O13 P28 Q42
    Date: 2020–01
  14. By: Gert Brunekreeft; Julia Kusznir; Roland Meyer; Madoka Sawabe; Toru Hattori
    Abstract: The rapid growth of Distributed Energy Resources (DER) and their integration into network presents currently the greatest challenges for many network operators worldwide in terms of network stability and power quality. To meet these challenges not only huge investment in grid expansion and smart grid technologies is required, but also the network regulation needs to adapt from cost efficiency towards investment and innovation. We analyze the recent experiences with the regulatory framework in several countries facing significant challenges of large penetration of DER. We discuss several selected regulatory issues that are important for promoting needed investment while ensuring cost efficiency, such as the length of regulatory period, X-factor, and allowed rate of return. We conclude that in the era of smart grids, incentive regulation requires a long-term perspective and needs to address the regulatory risks and uncertainties related to investment into grid expansion and smart grid technologies. To do so, incentive regulation should be supplemented by more innovative, investment-friendly regulatory measures. Additional supplementary mechanisms such as output-based regulation would be useful to achieve the regulatory goals and develop fully functional and consumer-oriented smart grid, though details for their implementation still have to be worked out.
    Keywords: Capex-bias, Opex-risk, electric utilities, regulation
    JEL: L51 L94
    Date: 2020–03
  15. By: Carolyn Fischer; Timothy Meyer
    Abstract: EU-Biodiesel (Indonesia) is the latest in two lines of cases. On the one hand, the case offers yet another example of the Dispute Settlement Body striking down creative interpretations of antidumping rules by developed countries. Applying the Appellate Body’s decision in EU-Biodiesel (Argentina), the panel found that the EU could not use antidumping duties to counteract the effects of Indonesia’s export tax on palm oil. On the other hand, the decision is another chapter in the battle over renewable energy markets. Both the EU and Indonesia had intervened in their markets to promote the development of domestic biodiesel industries. The panel’s decision prevents the EU from using antidumping duties to preserve market opportunities created by its Renewable Energy Directive for its domestic biodiesel producers. The EU has responded in two ways. First, through regulations that disfavor palm-based biodiesel, but not biodiesel made from other foodstocks, such as rapeseed oil commonly produced in the EU. Second, the EU has imposed countervailing duties on Indonesian biodiesel, finding that Indonesia’s export tax on crude palm oil constitutes a subsidy to Indonesian biodiesel producers. The EU’s apparently inelastic demand for protection raises two questions: First, when domestic political bargains rest on both protectionist and non-protectionist motives and policies have both protectionist and non-protectionist effects, what are the welfare consequences of restraining only overt protectionism? Second, under what circumstances may regulatory approaches be even less desirable than duties for addressing combined protectionist and environmental interests, and would the WTO have the right powers to discipline them in an environmentally sound way?
    Keywords: World Trade Organization, antidumping, biodiesel, climate governance, economic development.
    Date: 2019–10
  16. By: Friedrich, Marina; Mauer, Eva-Maria; Pahle, Michael; Tietjen, Oliver
    Abstract: Price formation in the EU Emission Trading System (EU ETS) has persistently puzzled economists and policy makers. In recent years, the empirical literature investigating this topic has expanded considerably, but a synthesis of what could be learned about price formation as a whole including the last wave of research is still missing. To fill this gap, we review the empirical literature structured along three categories of price drivers and related econometric methods. For better guidance of the reader, we draw on a simple theoretical model of price formation that we subsequently extend to connect the three different strands of literature: demand-side fundamentals, regulatory intervention and finance. In particular the insights from the second and third strand challenge the widespread view that allowance markets primarily reflect marginal abatement costs. Accordingly, the next wave of research should focus on shedding light on the complex interplay of compliance, regulatory uncertainty and financial trading motives.
    Keywords: emission trading,EU ETS,price formation,literature review
    JEL: Q48 Q50 Q56 Q58
    Date: 2020
  17. By: Filippo Del Grosso (Free University of Bolzano‐Bozen, Faculty of Economics and Management, Italy)
    Abstract: The aim of this paper is to assess the outcomes of the Reliability Options scheme for Capacity Mechanism, as implemented in the Integrated Single Electricity Market in Ireland (I-SEM). This research leverages econometric and data handling techniques to provide evidence over the effectiveness of this scheme in terms of system reliability, as well as to help understanding the functioning and potential best practices for early adopters of a technically complex and sophisticated market solution and derive potential policy implications. The originality of this contribution is given by the regional focus, as well as the inclusion of the time dimension, by modelling three different datasets (Full, Ante I-SEM and Post I-SEM), and by adding specifications of fundamental variables related to the electricity system.
    Keywords: Electricity Market; Electricity Regulation; Capacity Mechanism; Capacity Payment; Reliability Options
    JEL: Q41 Q47 Q48
    Date: 2020–10
  18. By: Scita, Rossana; Raimondi, Pier Paolo; Noussan, Michel
    Abstract: Hydrogen is currently enjoying a renewed and widespread momentum in the energy market. In the last years, demand for hydrogen has substantially increased worldwide, with several countries developing hydrogen national strategies, and private companies investing in the development of hydrogen related projects. Green hydrogen’s environmental sustainability and versatility contribute to its representation as the holy grail of decarbonisation. This working paper challenges this definition, by analysing the historical process which contributed to hydrogen’s rise, showing the current uses of hydrogen and the major obstacles to the implementation of a green hydrogen economy, and assessing the geopolitical implications of a future hydrogen society. Particularly, the paper shows that the hydrogen economy is still far from becoming reality. Even though investments in green hydrogen technologies and projects have increased over the last decade, there still remains a high number of unresolved issues, relating to technical challenges and geopolitical implications. Nonetheless, a clean hydrogen economy offers promising opportunities not only to fight climate change, but also to redraw geopolitical relations between states. The energy transition is already taking place, with renewable energies gradually eroding the global energy system based on fossil fuels. A global transformation, set in motion by the need to decarbonise the energy system, will have the potential to redraw international alliances and conflicts. In this context, hydrogen may play a crucial role. By 2050, hydrogen could indeed meet up to 24% of the world’s energy needs, thus highly influencing the geopolitical landscape. In this regard, the choice over which pathway to take for the creation of hydrogen value chains will have a huge geopolitical impact, resulting in new dependencies and rivalries between states. Conclusively, if national governments are willing to spur the emergence of a green hydrogen economy, they should heavily invest in research and development, encourage the development of a clean hydrogen value chain, and promote common international standards. Moreover, they should also take into account hydrogen’s geopolitical implications. If the hydrogen economy is well-managed, it could indeed increase energy security, diversify the economy, and strengthen partnerships with third countries.
    Keywords: Resource /Energy Economics and Policy
    Date: 2020–10–23
  19. By: Yoo, Sunbin; Koh, Kyung Woong; Yoshida, Yoshikuni
    Abstract: We investigate whether the contrasting set of transportation policies in Korea---reductions in fuel taxes and increases in diesel automobile prices---has decreased emissions. Using a random-coefficient discrete choice model and hypothetical policy sets, we estimate the automobile demand of consumers, the market share of cars by fuel type, and total emissions, assuming that consumer preferences for driving costs change over time. Then, we separately analyze the effect of each policy set on automobile sales and emissions, particularly carbon dioxide, nitrogen oxide, and particulate matter. Our analyses reveal that Korean consumers have become more sensitive toward fuel costs over time and that the emission consequences of Korean policies depend on consumer preferences.
    Keywords: Discrete Choice, Demand Estimation, Emissions, Transportation, Fuel Cost
    JEL: D1 D12 R4 R41
    Date: 2020–10
  20. By: Golub, Alexander; Govorukha, Kristina; Mayer, Philip; Rübbelke, Dirk
    Abstract: The effects of extreme weather events, such as heat waves and droughts are taken into account in both global and European policies. Accordingly, the protection of critical infrastructures and in particular, the resilience of the energy sector was the subject of intense research. There are regional differences in the degree of exposure to extreme events. In Northern Europe, their intensity has increased dramatically within a decade. In our analysis we identify emerging risks of extreme weather events, in particular, droughts and high temperatures, for the German power sector. Furthermore, we consider how European policy addressed these severe risks. Our analysis is based on extensive datasets covering temperature and drought data for the last 40 years. We find evidence of a higher frequency of power plants outages as a consequence of droughts and high temperatures. We investigate increases in the wholesale electricity price and price volatility and develop a capacity-adjusted drought index. The results are used to assess the monetary loss of power plant outages due to heatwaves and droughts. We stress that increasing frequencies of such extreme weather events will aggravate the observed problem, especially with respect to the transition of the power sector.
    Keywords: Environmental Economics and Policy, Resource /Energy Economics and Policy
    Date: 2020–10–23
  21. By: Andrei V. Belyi; Julia Grübler (The Vienna Institute for International Economic Studies, wiiw); Peter Havlik (The Vienna Institute for International Economic Studies, wiiw); Grzegorz Kolodko
    Abstract: Chart of the month COVID-19 measures and mobility responses in CESEE countries by Julia Grübler Opinion Corner Three decades of successful post-socialist transformation, and what next? A programme for Poland by Grzegorz W. Kolodko This note argues that economic and social policy in Poland should go beyond a mere maximising of GDP growth and target a wide range of areas, such as consumer protection, investments in human capital, the quality of environment, demographic decline, sustainability of the pension system, and a more socially-oriented taxation system. New oil counter-shock advent of uncertainties by Andrei Belyi The current slump in oil prices is a reflection of fundamental uncertainties and, unlike previous such episodes, will do little to boost economic growth. Its effect on oil-producing countries is likely to be asymmetric, with Russia lagging behind OPEC in terms of the competitiveness of its oil industry. The era of low oil prices does not bode well for energy transition, as incentives for this will be greatly diminished and cash-strapped budgets will be in need of excise taxes on oil products. Challenges of reintegrating Donbas into Ukraine what role for foreign assistance? by Peter Havlik The conflict in Donbas that has just marked its sixth anniversary is having a significant impact on the whole of Ukraine. In contrast to the unprecedented scale of international assistance provided to Ukraine so far, the engagement of the private sector has been disappointing. A ‘freezing’ of the conflict – mediated by the conflict parties with international support – would be an important step towards curtailing human suffering and mitigating the costs of economic reconstruction. The coronavirus crisis is driving Donbas into the Russian-managed space. Monthly and quarterly statistics for Central, East and Southeast Europe
    Keywords: COVID-19 measures, mobility responses, economic and social policy, human capital, consumer protection, environment, demography, pension system, taxation, oil price, oil production costs, fiscal balance, energy transition, Donbas conflict, economic consequences, foreign assistance, FDI inflows
    Date: 2020–04
  22. By: Shahbaz, Muhammad; Khraief, Naceur; L. Czudaj, Robert
    Abstract: The paper investigates the nonlinear pass-through from economic growth to renewable energy consumptionby applying a Nonlinear Auto-Regressive Distributed Lag model (NARDL) for G7 countries. This study covers the period of 1995Q1-2015Q4. The recent approach allows for empirical tests of short-run and long-run asymmetric responses of renewable energy consumption to positive and negative shocks stemming from economic growth. The results reveal that renewable energy consumption responds asymmetrically to economic growth in the long-run for France, Japan, Italy and the UK. However, we find no evidence for a long-run equilibrium between renewable energy consumption and economic growth in Germany, Canada and the US.
    Keywords: Renewable Energy Consumption, Economic Growth, Nonlinear ARDL
    JEL: Q2
    Date: 2020–10–03
  23. By: Ángel Marrero (Universidad de La Laguna); Gustavo A. Marrero (Universidad de La Laguna); Marina González (Universidad de La Laguna); Jesús Rodríguez-López (U. Pablo de Olavide)
    Abstract: In Europe the transport sector accounts for more than 27% of total CO2 emissions and, within this sector, road transport is by far the largest polluter. This fact has placed road transport emissions abatement firmly on the agenda of global alliances. In this paper, we examine the convergence in per capita road transport CO2 emissions in a sample of 22 European Union (EU) countries over the 1990-2014 period. We find evidence that EU countries converge to one another but depending on certain structural factors (conditional convergence), and that the convergence speed has increased over time. In light of this evidence, we estimate a conditional convergence dynamic panel data model to examine the structural factors affecting the convergence process and its influence on the convergence speed. Because, in our sample, road transport CO2 emissions depend almost exclusively on (fossil) fuel consumption, we focus on the determinants channelled through the use of energy in the sector. By using alternative econometric approaches (pooled-OLS, fixed-effects and instrumental variables), our results show that the convergence process is conditioned by factors such as economic activity and fuel prices and that some of these factors have a significant effect on the convergence speed. These results may entail policy implications with regards to the geographical impact of the EU policies on climate change currently in place.
    Keywords: Road transport; CO2 emissions; Convergence; Dynamic panel data models.
    JEL: Q43 C23 Q54
    Date: 2020
  24. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of switching fuel to reduce greenhouse gas emissions
    Keywords: environmental economics, climate change, undergraduate, postgraduate, video
    JEL: Q54
    Date: 2020–09
  25. By: Comello, Stephen; Glenk, Gunther; Reichelstein, Stefan
    Abstract: Comprehensive global decarbonization will require that transportation services cease to rely on fossil fuels. Here we develop a generic life-cycle cost model to address two closely related questions central to the emergence of sustainable transportation: (i) the utilization rates (hours of operation) that rank-order alternative drivetrains in terms of their cost, and (ii) the cost-efficient share of clean energy drivetrains in a vehicle fleet of competing drivetrains. Calibrating our model framework in the context of urban transit buses, we examine how the comparison between diesel and battery-electric buses varies with the specifics of the duty cycle (route). We find that even for less favorable duty cycles, battery-electric buses will entail lower life-cycle costs once utilization rates exceed 20% of the annual hours. Yet, the current economics of that particular application still calls for a one-third share of diesel drivetrains in a cost-efficient fleet.
    Keywords: clean energy vehicles,transportation services,life-cycle cost,fleet optimization
    Date: 2020
  26. By: Tahir Miriyev; Alessandro Contu; Kevin Schafers; Ion Gabriel Ion
    Abstract: In this work we considered several hybrid modelling approaches for forecasting energy spot prices in EPEC market. Hybridization is performed through combining a Naive model, Fourier analysis, ARMA and GARCH models, a mean-reversion and jump-diffusion model, and Recurrent Neural Networks (RNN). Training data was given in terms of electricity prices for 2013-2014 years, and test data as a year of 2015.
    Date: 2020–10
  27. By: Huwe, Vera; Gessner, Johannes
    Abstract: Widespread electric vehicle adoption is considered a major policy goal in order to decarbonize the transport sector. However, potential rebound effects both in terms of vehicle ownership and distance traveled might nullify the environmental edge of electric vehicles. Using cross-sectional household-level microdata from Germany, we identify rebound effects of electric vehicle adoption on both margins for specific subgroups of electric vehicle owners. As our data is cross-sectional, we resort to data-driven methods which are not yet commonly used in the economic literature. For the identification of changes in the number of cars owned after electric vehicle adoption, we predict counterfactual car ownership using a supervised learning approach. Furthermore, we investigate the effect of electric vehicle adoption on household mileage based on a genetic matching of households owning electric vehicles to similar owners of conventional cars. For the selection of covariates for matching, we contrast ad hoc variable selection based on the available literature with a data-driven variable selection method (double LASSO). We cannot verify asignificant increase in the number of cars owned for households with one electric and one conventional vehicle. For the subgroup of households who substitute the electric car for a conventional vehicle, electric vehicle ownership is associated with a significant reduction in annual mileage of -23% of the sample mean. The result indicates a strive for behavior consistent with the environmentally-friendly car choice rather than a rebound effect. Our results are subgroup-specific and may not generalize to the overall population. Methodologically, we find that data-driven variable selection identifies a refined set of covariates and changes the magnitude of the estimation results substantially. It may thus be considered a useful complement, especially in settings with limited theoretical or empirical knowledge established.
    Keywords: Rebound Effect,Electric Vehicle Adoption,Variable Selection
    JEL: R41 Q55
    Date: 2020
  28. By: Amina Baba (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, LEDA-CGEMP - Centre de Géopolitique de l’Energie et des Matières Premières - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Anna Creti (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, LEDA-CGEMP - Centre de Géopolitique de l’Energie et des Matières Premières - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, X - École polytechnique); Olivier Massol (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, City University of London)
    Abstract: We examine the profitability of flexible routing by LNG cargoes for a single supplier taking into account uncertainty in the medium-term dynamics of gas markets. First, we model the trajectory of natural gas prices in Asia, Northern America, and Europe using a Threshold Vector AutoRegression representation (TVAR) in which the system's dynamics switches back and forth between high and low regimes of oil price volatility. We then use the generalized impulse response functions (GIRF) obtained from the estimated threshold model to analyze the effects of volatility shocks on the regional gas markets dynamics. Lastly, the valuation of destination flexibility in LNG supplies is conducted using a real option approach. We generate a sample of possible future regional price trajectories using Monte Carlo simulations of our empirical model and determine for each trajectory the optimal shipping decisions and their profitability. Our results portend a substantial source of profit for the industry and reveal future movements of vessels. We discuss the conditional impact of destination flexibility on the globalization of natural gas markets.
    Keywords: LNG arbitrage,destination flexibility option,volatility,TVAR,Monte Carlo simulation
    Date: 2020–06
  29. By: Chigumira, Gibson; Dube, Cornelius; Mudzonga, Evengelista; Chiwunze, Gamuchirai; Matsika, Wellington
    Abstract: Zimbabwe is richly endowed with natural resources which include renewables (land; forest, water; wildlife; sunshine) and non-renewables (oil; gas; minerals) among others. The exploitation of these natural resources present immense opportunities to sustain high levels of income based resource rents. The purpose of this study is to provide policy makers and the broader public with information that can be used to inform the strategies designed to ensure that the country fully realises benefits of its rich natural resources endowments to drive economic growth and transformation to achieve the upper middle income status by 2030. While the country has diverse natural resource the study is not exhaustive but exploratory and only focused on a few natural resources: minerals; forestry; wildlife and solar energy.
    Keywords: Environmental Economics and Policy, Land Economics/Use, Resource /Energy Economics and Policy
    Date: 2019–03–31
  30. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of saving energy to reduce greenhouse gas emissions
    Keywords: environmental economics, climate change, undergraduate, postgraduate, video
    JEL: Q54
    Date: 2020–09
  31. By: Marina Friedrich; Sébastien Fries; Michael Pahle; Ottmar Edenhofer
    Abstract: Long-term commitment is crucial for the dynamic efficiency of intertemporal cap-and-trade programs. Discretionary interventions in such programs could destabilize the market, and necessitate subsequent corrective interventions that instigate regulatory instability (Kydland and Prescott, 1977). In this work, we provide evidence for this claim from the EU’s cap-and-trade program (EU-ETS). We ground our analysis in the theoretical finance literature, and apply a mixed method approach (time-varying regression, bubble detection, crash-odds modelling). We find that the recent EU-ETS reform triggered market participants into speculation, which likely led to an overreaction that destabilized the market. We discuss how the smokescreen politics behind the reform, which manifested itself in complex rules, was crucial for this outcome. We conclude that rules only ensure long-term commitment when their impact on prices is predictable.
    Keywords: rules vs. discretion, cap-and-trade, overreaction, allowance pricing
    JEL: Q48 Q50 Q56
    Date: 2020
  32. By: Khraief, Naceur; Shahbaz, Muhammad; Kumar Mahalik, Mantu; Bhattacharya, Mita
    Abstract: This paper contributes to the existing literature by investigating the impact of oil prices on real exchange rates in China and India. We employ the non-linear, autoregressive-distributed lag model advanced by Shin et al. (2014), which allows both short-run and long-run asymmetry pass-through to a variable of interest. Oil prices and exchange rates are frequently found to be noisy. In order to detect the accurate relationship between oil prices and exchange rates, the maximum overlap, discrete-wavelet transformation is used to remove noise from the original series. The dynamic relationship between the original and de-noised series is compared. Our empirical findings suggest only long-run asymmetric effects of oil prices on exchange rates for both countries; however, after time-series noise removal, the asymmetric long-run effect becomes symmetric for India. Policy implications also are included.
    Keywords: Oil price shocks, asymmetric effects, exchange rates, India, China, NARDL
    JEL: F0
    Date: 2020–10–02
  33. By: Damar, H. Evren; Lange, Ian; McKennie, Caitlin; Moro, Mirko
    Abstract: We exploit the spatial and temporal variation of the staggered introduction of interstate banking deregulation across the U.S. to study the relationship between credit constraints and consumption of durables. Using the American Housing Survey from 1981 to 1993, we link the timing of these reforms with evidence of a credit expansion and household responses on many margins. We find robust evidence that households are more likely to purchase new appliances and invest in home renovations and modifications after the deregulation. These durable goods allowed households to consume less electricity and spend less time in domestic activities after the reforms.
    Keywords: banking deregulation,credit constraints,energy consumption,durable goods
    JEL: D12 G2 Q41
    Date: 2020
  34. By: Faure, Corinne; Guetlein, Marie-Charlotte; Schleich, Joachim
    Abstract: The European Union has decided to replace its current A+++ to D labelling scheme for cold appliances with a rescaled A to G labelling scheme. Employing a demographically representative discrete choice experiment on refrigerator adoption using an online survey among more than 1000 households in Germa-ny, this paper explores the effects of the rescaled scheme compared to the old scheme on the stated uptake of top-rated refrigerators. Since in practice both schemes will be shown for a transitory period, the paper also analyses the ef-fects of displaying both labels simultaneously. The findings from estimating a mixed logit model suggest that showing the rescaled A to G label alone signifi-cantly increases valuation of top-rated refrigerators compared to showing the current A+++ to D label alone. In comparison, when the A+++ to D and the re-scaled A to G schemes are shown simultaneously, no benefits of introducing the rescaled label are found. Thus, policymakers should strive to enforce the application of the rescaled label scheme as quickly as possible and to shorten transitory periods where both labels are shown simultaneously.
    Keywords: energy efficiency,energy label,appliances,choice experiment
    Date: 2020
  35. By: Jose Jaime Macuane; Carlos Muianga
    Abstract: In the light of Mozambique's natural resources boom?especially its large-scale investments in mining, oil, and gas?this paper analyses the prospects for the extractive industries to contribute to economic transformation from an institutional perspective. To this purpose, we address the institutional dynamics of the resources sector and consider the underlying causes of the identified outcomes. The National Development Strategy, as the instrument presenting the vision for economic transformation and diversification, is discussed.
    Keywords: Economic transformation, Extractive industries, Institutions, Mozambique, Natural resources
    Date: 2020
  36. By: J.-M. GERMAIN (Insee); T. LELLOUCH (Insee)
    Abstract: Respecter les engagements climatiques qui découlent des accords de Paris sur le climat nécessite des moyens financiers importants que l’on évalue ici à l’aide d’un modèle macroéconomique combinant un critère de répartition intergénérationnelle de l’effort climatique et des hypothèses sur l’efficacité des technologies de décarbonation. Les résultats montrent que pour la France, la trajectoire actuelle d’émissions de gaz à effet de serre n’est pas soutenable, au sens où pour atteindre l’engagement de neutralité carbone en 2050, le niveau annuel de dépenses pour le climat devrait augmenter de manière très substantielle, à 4.5 % du PIB contre 1.9 % actuellement. Ces évaluations permettent d’en déduire un prix social du carbone ou valeur de l’action climat,significativement réévaluée à la hausse par rapport aux évaluations précédentes, dans le sillage des résultats de la commission Quinet en 2019. De telles évaluations de trajectoire d’émissions et de prix social du carbone pourraient constituer le point d’entrée d’une comptabilité économique environnementale qui intègre la dégradation du patrimoine naturel induite par les activités économiques.
    Keywords: Soutenabilité, changement climatique, prix du carbone, épargne nette ajustée
    JEL: Q01 Q54 Q56 E01 E21 O13
    Date: 2020
  37. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of the Weitzman Theorem applied to environmental policy
    Keywords: environmental economics, policy instruments, undergraduate, video
    JEL: Q50 Q58
    Date: 2020–09
  38. By: Yihan Yan
    Abstract: In June 2014, Tesla, a leading manufacturer of electric vehicles, announced it would make its software and hardware available for free to other automakers. This paper analyzes the effect of Tesla's open source initiative on the plug-in hybrid and electric vehicle (PHEV) industry in the US. On the one hand, open source allows PHEV manufacturers to use the advanced technology of Tesla, which could lead to lower investment costs and a higher incentive to invest. Open source also partially removes the entry barriers and could attract more entrants and induce economies of scale, leading to decreased manufacturing costs. On the other hand, underinvestment of Tesla's rivals may occur as a result of free riding, which could result in slower quality improvements in the industry. I quantify these impacts by estimating a dynamic structural model, where players make investment and entry decisions to maximize discounted future returns. My results show that Tesla's initiative was beneficial for the industry and Tesla. I find a 60% drop in investment cost, and a decrease of 100 million in entry cost into the PHEV industry. Counterfactual analysis shows that, had Tesla not provided open source, the industry would have had 33% fewer PHEVs and Tesla would have had one billion less in profit.
    Keywords: Open Source, Dynamics, Quality, Differentiated Products, Discrete Choice, Automobile Industry
    JEL: L11 L15 L62
    Date: 2020–10
  39. By: Li, Gang
    Abstract: In a two-sector general equilibrium model with pollution (arising from production) affecting the productivity, I examine in both autarky and trade equilibria the equivalence between tax and quota, that is, whether they can replace each other to achieve the same environmental goals. I show that (i) sometimes tax cannot achieve what quota can; (ii) the equivalence/non-equivalence between tax and quota may change due to trade liberalization; (iii) the choice of numeraire matters under tax regulation.
    Keywords: Pollution tax; emission quota; production externalities; numeraire
    JEL: F18 H23 Q58
    Date: 2020–09
  40. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of on efficient flow pollution
    Keywords: environmental economics, Pareto optimality, cost-benefit analysis, flow pollution, undergraduate, video
    JEL: D61 Q50
    Date: 2020–07
  41. By: Emilio Padilla Rosa (Departament d'Economia Aplicada, Universitat Autonoma de Barcelona); Evans Jadotte (World Bank, Macro Economics, Trade and Investment Global Practice)
    Abstract: We analyze the differences in CO2 emissions per capita between developing countries and how these are influenced by a series of affluence, structural, demographic and climatic variables. We first perform a regression analysis to ascertain the determinants of CO2 emissions, providing new evidence for the case of developing countries. The results indicate an N-shaped relationship with GDP per capita and a negative impact of the agriculture share and average daily minimum temperatures, while urbanization and the share of potentially active population would be positively correlated with emissions per capita. By using the regression-based inequality decomposition method, our analysis indicates the weight of each significant determinant in explaining the inequality in CO2 emissions per capita between developing countries. The main contributor to this inequality is economic affluence, while the potentially active population factor is the second main contributor. We study their change over time and the relevance of each factor in the changes experienced by inequality. Some of our results contrast with similar studies for more heterogeneous samples including developed countries. We derive some implications for environmental policy in developing countries.
    Keywords: CO2 emission drivers; CO2 emission inequality drivers; CO2 inequality; developing countries; regression-based inequality decomposition.
    Date: 2020–10
  42. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of the incidence of environmental pollution and policy
    Keywords: environmental economics, environmental justice, undergraduate, video
    JEL: J15 Q50 Q56
    Date: 2020–09
  43. By: Asantewaa, Adwoa (World Bank Group and Durham University Business School, Durham University, UK); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Llorca, Manuel (Department of Economics, Copenhagen Business School)
    Abstract: Since the late 1980s, electricity sector reforms have transformed the structure and organisation of the sector in many countries across the world. While the outcomes of reforms in developed and some developing countries have been extensively examined, there is limited analysis on the outcomes of the reforms in sub-Saharan Africa (SSA). This paper analyses the performance of electricity sector reforms in 37 SSA countries between 2000 and 2017. We use a Stochastic Frontier Analysis approach to estimate a multi-input-multi-output distance function to assess the impact of reform steps and institutional features on sector-level performance. The results indicate that reforms in SSA increased the installed generation capacity per capita and plant load factor but did not reduce technical network losses. Also, the presence of an electricity law, sector regulator, vertical unbundling, and private participation in the management of assets have a positive impact on reform performance. Perceptions of non-violent institutional features such as corruption, regulatory quality and governance effectiveness do not seem to have significant effect on reform performance, but perceptions of political stability, violence and terrorism influence reform outcomes. The effects of hydroelectric capacity on reform performance was found to be negligible while larger electricity systems were found to be more efficient reformers. We conclude that a workable reform in SSA involves vertical unbundling with an electricity law, a regulator and private ownership and management of assets where desirable. However, the positive outcomes go hand in hand with an increase of technical network losses, and hence emphasis should be placed on decoupling these losses from generation capacity and plant load factor.
    Keywords: Electricity Sector Reform; Sub-Saharan Africa; Institutions; Stochastic Frontier Analysis; Distance Function
    JEL: H54 L94 O13 P11 Q48
    Date: 2020–08–06
  44. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of the policy implications of the environmental Kuznets curve
    Keywords: environmental economics, environmental Kuznets curve, undergraduate, video
    JEL: Q50 Q56 Q58
    Date: 2020–09
  45. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of afforestation and carbon capture and storage to reduce greenhouse gas emissions, and of geoengineering
    Keywords: environmental economics, climate change, postgraduate, video
    JEL: Q54
    Date: 2020–10
  46. By: David Deller (Centre for Competition Policy, University of East Anglia); Glen Turner (Centre for Competition Policy, University of East Anglia); Catherine Waddams Price (Centre for Competition Policy and Norwich Business School, University of East Anglia)
    Abstract: The measurement of fuel poverty is critical for judgements about the significance of the problem and the design of policies to address it. Reducing fuel poverty has been a government objective in the UK for many years, and is generally seen through the lens of the government’s official fuel poverty statistics . We compare the households identified as fuel poor according to three metrics: (i) the 10% indicator; (ii) the Low Income High Consumption indicator; and (iii) whether households self-report an inability to afford to keep their home warm, using data from the British Household Panel Survey. We find substantial differences in the households identified according to each of these indicators; this highlights a lack of clarity about which households might be considered truly fuel poor. In particular, a surprisingly low proportion of those identified by the 10% and LIHC indicators report an inability to afford to keep their home warm. While this could raise concerns that current fuel poverty policies in the UK are misdirected, instead we emphasise the difficulties of drawing policy conclusions from the differences between the indicators, unless it can be combined with information on households’ heating preferences and the in-home temperatures achieved.
    Date: 2020–10–01
  47. By: Céline Antonin (Observatoire français des conjonctures économiques)
    Abstract: Entre début mars et fin avril 2020, les barils de Brent et de Western Texas Intermediate ont perdu respectivement 71 % et 73 % de leur valeur en dollars. Deux chocs concomitants sont à l'origine de cette dégringolade. D'abord, le choc de demande lié à la crise du Covid-19 a commencé par la baisse de la croissance chinoise dès la fin du mois de janvier 2020 et a été amplifié par l'extension mondiale des mesures de confinement à partir de la mi-mars. Parallèlement, un choc d'offre, né des dissensions au sein de l'OPEP+, est intervenu début mars, aggravant le déséquilibre entre offre et demande. Les pays de l'OPEP+ ont fini par signer un accord historique de baisse de production de près de 10 %, en vigueur à partir du 1er mai 2020. Pourtant, cette baisse de production est apparue insuffisante pour soutenir les prix du pétrole et le décalage entre offre et demande a continué de grever le niveau des prix. [Premier paragraphe]
    Keywords: Pétrole; COVID-19; Prix; Baisse de production
    Date: 2020–05–07

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