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on Energy Economics |
| By: | Moreaux, Michel; Amigues, Jean-Pierre |
| Keywords: | energy efficiency;carbon pollution; non-renewable resources;; renewable resources; abatement |
| JEL: | Q32 Q43 Q54 |
| Date: | 2020–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:124872&r=all |
| By: | Shize Qin; Lena Klaa{\ss}en; Ulrich Gallersd\"orfer; Christian Stoll; Da Zhang |
| Abstract: | The carbon footprint of Bitcoin has drawn wide attention, but Bitcoin's long-term impact on the climate remains uncertain. Here we present a framework to overcome uncertainties in previous estimates and project Bitcoin's electricity consumption and carbon footprint in the long term. If we assume Bitcoin's market capitalization grows in line with the one of gold, we find that the annual electricity consumption of Bitcoin may increase from 50 to 400 TWh between 2020 and 2100. The future carbon footprint of Bitcoin strongly depends on the decarbonization pathway of the electricity sector. If the electricity sector achieves carbon neutrality by 2050, Bitcoin's carbon footprint has peaked already. However, in the business-as-usual scenario, emissions sum up to 2 gigatons until 2100, an amount comparable to 6% of global emissions in 2018. Therefore, we also discuss policy instruments to reduce Bitcoin's future carbon footprint. |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2011.02612&r=all |
| By: | Jonathan Colmer; Ralf Martin; Mirabelle Muûls; Ulrich J. Wagner |
| Abstract: | Market-based regulatory instruments hold the promise of correcting market failures at least cost. However, evidence on their efficacy remains scarce. We evaluate the European Union Emissions Trading Scheme (EU ETS) - the world's first and largest market-based climate policy. Using administrative data on almost 4,000 French manufacturing firms, we estimate that the EU ETS induced regulated firms to reduce carbon dioxide emissions by 8-12% compared to unregulated firms after the Pilot phase, a necessary condition for climate change mitigation. These reductions account for 26% of the concurrent decline in aggregate industrial emission in France. We do not estimate any negative effects on the scale of production; instead we find that firms reduced the emissions intensity of value added by making targeted investments. We find no evidence that firms outsourced production to unregulated firms or markets. Collectively, these findings suggest that the EU ETS induced global emissions reductions, a necessary and sufficient condition for mitigating climate change. |
| Keywords: | Emissions Trading System, carbon leakage, investment, climate policy |
| JEL: | Q54 Q58 H23 L50 F18 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2020_232&r=all |
| By: | Mihalyi, David |
| Abstract: | This paper analyzes the factors affecting the speed at which newly discovered oil and gas fields are developed. Using data from over 25,000 oil and gas assets globally I demonstrate that both asset and country characteristics are critical in determining which assets reach production stage. I analyze the effects of countries adopting a set of market oriented reforms, to shed light on the impacts of institutional changes on petroleum extraction timeline. Mitigating climate change will require a large share of the world's already discovered fossil resources to stay underground. The results of this study can help inform how petroleum producers may respond to the energy transition underway. My findings also calls into question the assumption used in earlier research that giant oil and gas discoveries can be considered exogenous in their impacts on subsequent production. |
| Keywords: | resource curse, natural resources, oil discovery, institutions, liberalization |
| JEL: | P50 Q33 Q35 |
| Date: | 2020–09–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:103725&r=all |
| By: | Todd Myers |
| Abstract: | In 2009, Congress introduced the Smart Grid Investment Grant (SGIG) as part of the American Reinvestment and Recovery Act, a stimulus package intended to help revert the effects of the recession. The SGIG was the largest program in the stimulus package, providing $3.4 billion of federal funding for building out a smart grid. Most of the projects that received funding through that grant program were centered around expanding the use of smart meters — a new electricity meter technology that reads energy use and relays that data back to the electricity provider. Smart meters were promised as a means of reducing electricity costs, improving user knowledge about their electricity use, and contributing to better environmental outcomes through lower electricity use at peak production hours. However, recent innovations in smart thermostat technology are proving to be much more effective at achieving those results without the implementation of a substantial federal program. Utilities such as Portland General Electric and Southern California Edison have reported that smart thermostats have proven to be more effective at reducing energy use than smart meters, in some instances reducing peak demand by 40 – 50 percent. In this policy paper author Todd Myers examines why smart thermostats have been more effective at reducing energy use than smart meters rolled out under SGIG. He concludes that rather than forcing specific technologies on consumers, policymakers should opt for approaches that engage consumer preferences and embrace innovative solutions. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cgouta:307173&r=all |
| By: | Olivier De Jonghe (National Bank of Belgium & Tilburg University); Klaas Mulier (Ghent University); Glenn Schepens (European Central Bank) |
| Abstract: | This paper shows that, when the price of emission allowances is sufficiently high, emission trading schemes improve the emission efficiency of highly polluting firms. The efficiency gain comes from a relative decrease in emissions rather than a relative increase in operating revenue. Part of the improvement is realized via the acquisition of green firms. The size of the improvement depends on the initial allocation of free emission allowances: highly polluting firms receiving more emission allowances for free, such as firms on the carbon leakage list, have a weaker incentive to become more efficient. For identification, we exploit the tightening in EU ETS regulation in 2017, which led to a steep price increase of emission allowances and made the ETS regulation more binding for polluting firms. |
| Keywords: | climate change; climate regulation;emission trading; firm behaviour |
| JEL: | D22 G34 G38 Q53 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-390&r=all |
| By: | Lauren Giandomenico (Faculty of Social Sciences, University of Ottawa); Maya Papineau (Department of Economics, Carleton University); Nicholas Rivers (Faculty of Social Sciences, University of Ottawa) |
| Abstract: | This is the first systematic review of studies evaluating the energy savings and cost effectiveness of residential energy efficiency retrofit programs. We review 33 evaluations of 19 residential retrofit programs that were implemented in the United States and Europe between 1979 and 2014. Our sample is restricted to program evaluations that used actual household billing data from 159,935 retrofitted households. We report four primary findings. First, none of the studies in our sample reported deep savings (e.g., 50% or greater) from retrofit programs. The mean reduction in measured electricity and/or fuel consumption due to energy efficiency retrofits for all programs included in our sample was roughly 7.5%. However, because many households use both fuel and electricity, total household energy savings from the retrofit programs evaluated in our sample are probably smaller. Second, reported program savings decreased as the internal validity of study design increased. Third, as measured by realized savings and cost-effectiveness, the most promising retrofits were water heater insulation and programmable thermostats, whereas the least promising retrofits were storm windows and doors. Fourth, programs with high reported savings and low costs of conserved energy served low-income, fuel-heated households exclusively. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:car:carecp:20-19&r=all |
| By: | Franziska Schütze |
| Abstract: | A range of studies has analysed how climate-related risks can impact financial markets, focusing on equity and corporate bond holdings. This article takes a closer look at transition risks and opportunities in residential mortgages. Mortgage loans are important from a financial perspective due to their large share in banks’ assets and their long credit lifetime, and from a climate perspective due to their large share in fossil fuel consumption. The analysis combines data on the energy-performance of buildings with financial data on mortgages for Germany and identifies two risk drivers – a carbon price and a performance standard. The scenario analysis shows that expected credit loss can be substantially higher for a “brown” portfolio compared to a “green” portfolio. Taking climate policy into account in risk management and strategy can reduce the transition risk and open up new lending opportunities. Financial regulation can promote such behaviour. |
| Keywords: | Mortgages, residential buildings, carbon risks, transition risks, valuation, climate policy scenarios, policy and regulation |
| JEL: | G21 Q48 Q56 Q58 R38 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1910&r=all |
| By: | Bruno Moreno Rodrigo de Freitas (CATT - Centre d'Analyse Théorique et de Traitement des données économiques - UPPA - Université de Pau et des Pays de l'Adour) |
| Abstract: | Among the major challenges for the power systems of the future, one mayfind 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 me-tering,volumetric electricity tariffs,panel data |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02976874&r=all |
| By: | René Aid (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, 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); Andrea Cosso (UNIBO - Università di Bologna [Bologna]); Huyên Pham (LPSM (UMR_8001) - Laboratoire de Probabilités, Statistiques et Modélisations - UPD7 - Université Paris Diderot - Paris 7 - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique, ENSAE ParisTech - École Nationale de la Statistique et de l'Administration Économique) |
| Abstract: | We formulate an equilibrium model of intraday trading in electricity markets. Agents face balancing constraints between their customers consumption plus intraday sales and their production plus intraday purchases. They have continuously updated forecast of their customers consumption at maturity with decreasing volatility error. Forecasts are prone to idiosyncratic noise as well as common noise (weather). Agents production capacities are subject to independent random outages, which are each modelled by a Markov chain. The equilibrium price is defined as the price that minimises trading cost plus imbalance cost of each agent and satisfies the usual market clearing condition. Existence and uniqueness of the equilibrium are proved, and we show that the equilibrium price and the optimal trading strategies are martingales. The main economic insights are the following. (i) When there is no uncertainty on generation, it is shown that the market price is a convex combination of forecasted marginal cost of each agent, with deterministic weights. Furthermore, the equilibrium market price follows Almgren and Chriss's model and we identify the fundamental part as well as the permanent market impact. It turns out that heterogeneity across agents is a necessary condition for the Samuelson's effect to hold. (ii) When there is production uncertainty, the price volatility becomes stochastic but converges to the case without production uncertainty when the number of agents increases to infinity. Further, on a two-agent case, we show that the potential outages of a low marginal cost producer reduces her sales position. |
| Keywords: | coupled forward-backward SDE with jumps.,martingale optimality principle,Samuelson's effect,intra-day electricity markets,Equilibrium model,coupled forward-backward SDE with jumps * This study was supported by FiME (Finance for Energy Market Research Centre) and the "Finance et Développement Durable -Approches Quantitatives" EDF -CACIB Chair † LEDa,Université Paris Dauphine |
| Date: | 2020–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02970480&r=all |
| By: | Sanghamitra Mukherjee; Tensay Meles; L. (Lisa B.) Ryan; Séin Healy; Robert Mooney; Lindsay Sharpe; Paul Hayes |
| Abstract: | This paper explores the motivations behind the adoption of key renewable energy technologies in an early adopter market. Notwithstanding their social benefits, uptake of electric vehicles, heat pumps, and solar photovoltaic panels remains low, necessitating targeted measures to address this. We conducted a comprehensive survey of a nationally representative sample of Irish households and analysed this rich dataset using pairwise group comparisons and a factor analysis combined with a logit regression model. We found fundamental differences between adopters and non-adopters. Current adopters tend to be younger, more educated, of higher socio-economic status, and more likely to live in newer buildings of generous size than non-adopters. Environmental attitudes are an insufficient predictor of uptake - whilst non-adopters self-report as being more sustainable, adopters believe that their own decisions impact climate change. Importantly, social processes will be instrumental in future uptake. Word-of-mouth recommendation will matter greatly in communicating the use and benefits of technologies as evident from the significantly larger social networks that current adopters enjoy. Using these insights, policy incentives can be designed according to public preferences. |
| Keywords: | Household survey; Technology adoption; Heat pumps; Solar PVs; Electric vehicles; Consumer behaviour |
| JEL: | D1 D9 O3 Q4 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:202026&r=all |
| By: | Sanghamitra Mukherjee |
| Abstract: | This study explores the impact of socio-demographic, behavioural, and built-environment characteristics on residential renewable energy technology adoption. It provides new insights on factors influencing uptake using nearest neighbour and random forest machine learning models at a granular spatial scale. Being computationally inexpensive and having good classification performance, these models serve as useful baseline prediction tools. Data is sourced from an Irish survey of consumer perceptions of three key technologies – electric vehicles, solar photovoltaic panels, and heat pumps – and general attitudes towards sustainability, innovation, risk, and time. We demonstrate that utility bills, residence period, attitudes to sustainability, satisfaction with household heating, and perceptions of hassle have the biggest influence on current uptake. Urban areas, typically having better access to information and resources, are likely to see the biggest uptake first. Additionally, compatibility of household infrastructure, technical interest, and social approval are the most important predictors of potential uptake. These results may inform policy in other early adopter markets as well. Overall, policy makers must be cognisant of the stage of adoption their country is currently at. Accordingly, a holistic approach to tackling low adoption must include measures that not only enhance adoption capabilities via rebates and financial measures, but also support the opportunity and intent to purchase such technologies. |
| Keywords: | Renewable energy technology adoption; Consumer behaviour; Machine learning; Heat pumps; Solar PVs; Electric vehicles |
| JEL: | D1 D9 O3 Q4 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:202027&r=all |
| By: | Wardle, Arthur R. |
| Abstract: | When the Renewable Fuel Standard (RFS) began mandating the use of corn ethanol in US fuels in 2006, many of its chief justifications were environmental. Commentators and policymakers assumed that some use of plant-based fuels would be less environmentally damaging than exclusive reliance on fossil fuels. Contrary to the optimism of early biofuel advocates, this paper documents a number of harmful environmental consequences of the Renewable Fuel Standard. The author finds that the Renewable Fuel Standard leads farmers to convert vast tracts of land, including previously unfarmed land, to corn farming and to unsustainably intensify production on existing farms. The author also finds that thecorn needed to fulfill the ethanol mandate demands heavy fertilization and irrigation in areas prone to fertilizer-linked water quality issues and drought, but fails to produce much net energy. Finally, the research concludes that ethanol is not meaningfully superior to gasoline in terms of carbon dioxide emissions and is worse for other pollutants. This report illuminates these and other problems with the widespread use of corn ethanol prompted by the Renewable Fuel Standard and makes recommendations for how to mitigate these impacts. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| URL: | http://d.repec.org/n?u=RePEc:ags:cgouta:307175&r=all |
| By: | Tian, Ruijie (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | This paper examines the impact of carbon emissions trading schemes (ETS) on technical change proxied by the number of green patents in the context of the pilot ETS in China. I find a small increase of 0.16 patents per firm and year. A 10 percent increase in carbon prices increases green patents by 2 percent. The strongest effects are for the two regions in the upper range of carbon prices and for more productive firms. However, there are contrasting patterns at the extensive and intensive margins of green innovation: the pilot ETS reduces entry into green innovative activities but increases levels of innovating for firms that were innovative before they were regulated by ETS, especially for the more productive firms. This indicates that an important policy challenge is to encourage the firms covered by ETS to start innovation in green technologies; this applies particularly to the larger and more productive firms. |
| Keywords: | Carbon Pricing; Directed Technological Change; Innovation; Heterogeneous Firms. |
| JEL: | O33 O44 Q54 Q55 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0797&r=all |
| By: | Fawson, Chris; Cottle, Christopher; Hubbard, Hayden; Marshall, McKlayne |
| Abstract: | A rapidly increasing number of large U.S. companies are reporting use of an internal carbon price, in spite of the struggle to enact environmental regulation or reduction standards on carbon emissions in the United States. Such trends have created a growing interest in both how and why the private sector is using internal carbon pricing and what the implications of these developments will be. This paper examines the precise motives, methods and prices used by the U.S. private sector for incorporating an internal cost of carbon into their organizational strategies for the purpose of reducing carbon emissions. Careful analysis of reports from the CDP (formerly the Carbon Disclosure Project) suggests that the primary motives driving internal carbon pricing initiatives in the United States are investor relations, cost savings opportunities provided by reducing emissions, perceived physical risks associated with climate change (e.g., as severe weather or supply chain interference), and regulatory risk. Furthermore, shadow pricing and carbon offsetting are the most common methods of private-sector carbon pricing, and the average internal carbon price in the private sector is $40.09 per ton as of 2017. These trends are evaluated in the broader context of U.S. political developments, economic policies, and mechanisms for pricing carbon. This research should be particularly pertinent to private-sector shareholders and stakeholders, business owners, and executives—in addition to policy makers—as it provides unique insights into how private initiatives are advancing a commitment to CO2-induced climate change mitigation in the face of an increasingly uncertain public policy landscape. |
| Keywords: | Environmental Economics and Policy, Risk and Uncertainty |
| Date: | 2019–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cgouta:307178&r=all |
| By: | Olivier De Groote (Toulouse School of Economics, University of Toulouse Capitole); Axel Gautier (IHEC Liège, University of Liège); Frank Verboven (Department of Economics, KU Leuven) |
| Abstract: | To combat climate change, governments are taking an increasing number of technologyspecific measures to support green technologies. In this paper, we look at the very generous subsidy policies to solar PVs in the three regions of Belgium to ask the question of how voters responded to these programs. We provide evidence that voters did not reward the incumbent government that was responsible for the program, as predicted by the ‘buying-votes’ hypothesis. Instead, we find that voters punish the incumbent government because of the increasing awareness of the high financing costs. These did not only affect the non-adopting electricity consumers who did not benefit from the programs, but also the adopting prosumers, who saw unannounced new costs such as the introduction of prosumer fees to get access to the grid. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-389&r=all |
| By: | Cheng Cheng |
| Abstract: | Hydraulic fracturing stimulates fracture swarm in reservoir formation though pressurized injection fluid. However restricted by the availability of formation data, the variability embraced by reservoir keeps uncertain, driving unstable gas recovery along with low resource efficiency, being responsible for resource scarcity, contaminated water, and injection-induced earthquake. Resource efficiency is qualified though new determined energy efficiency, a scale of recovery and associated environmental footprint. To maximize energy efficiency while minimize its' variation, we issue picked designs at reservoir conditions dependent optimal probabilities, assembling high efficiency portfolios and low risk portfolios for portfolio combination, which balance the variation and efficiency at optimal by adjusting the proportion of each portfolio. Relative to regular design for one well, the optimal portfolio combination applied in multiple wells receive remarkable variation reduction meanwhile substantial energy efficiency increase, in response to the call of more recovery per unit investment and less environment cost per unit nature gas extracted. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2010.15223&r=all |
| By: | Lyna González (Universidad Autónoma de Barcelona, 08193, Bellaterra, Spain); Jordi Perdiguero Garcia (Department of Applied Economics, Universidad Autónoma de Barcelona, 08193, Bellaterra, Spain); Alex Sanz Fernández (Department of Economics and Economic History, Universidad Autónoma de Barcelona 08193, Bellaterra, Spain) |
| Abstract: | Many cities in Spain are wrapped in air containing excessive levels of particulate matter, nitrogen dioxide and ozone, generally a problem in big cities caused by traffic. Pollutants largely associated with volume of traffic in urban cities and their outlying areas, such as Madrid and Barcelona, which is suffering from one of the worst levels of air pollution in the country. According to the World Health Organization (WHO), 96.8% of Spain population breathe pollutant air. This paper shows empirical evidence about the contribution of public transport in the air quality of Barcelona using public transport strikes, through econometric analysis based on data from 2008 - 2016. During the study period, there were 147 days affected by some type of public transport strike:bus (57), metro (21), train (71) and tram (4) system, against 4 general strikes. The estimates indicate that public transit strikes have a statistically significant and positive effect on the concentration level of SO2, CO, PM10 and NOX in all over the city, especially in the case of metro and train. These results also allows us to understand better how commuters substitute transports modes between them and what policies can be implemented to increase the use of public transports. |
| Keywords: | Air pollution; Public transport strike; Econometric regression analysis; Public Transport Substitution |
| JEL: | C33 Q53 Q56 Q58 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:uab:wprdea:wpdea2008&r=all |
| By: | Hans Degryse (KU Leuven); Roman Goncharenko (KU Leuven); Carola Theunisz (KU Leuven); Tamas Vadasz (KU Leuven) |
| Abstract: | What is the impact of environmental consciousness (i.e., being green) as borrower and as lender on loan rates? We investigate this question employing an international sample of syndicated loans over the period 2011-2019. We find that green firms borrow at a signicantly lower spread, especially when the lender consortium can also be classifed as green, i.e., when \green-meets-green". Further tests reveal that the impact of \green-meets-green" became significant and large negative only after the acceptance of the Paris Agreement in December 2015. We argue that this is evidence for lenders responding to policy events which affect environmental attitudes. |
| Keywords: | Paris Agreement, Green Firms, Green Banks, bank lending |
| JEL: | A13 G21 Q51 Q58 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-392&r=all |
| By: | Ivan Petrov; L. (Lisa B.) Ryan |
| Abstract: | The aim of this paper is to test for the persistence of the landlord-tenant energy e fficiency problem in the residential rental property market in the presence of information on property energy performance. To do this, we compare the efficiency of rental and non-rental properties using a combination of Coarsened Exact Matching (CEM) and parametric regression. We use a sample of 585,578 residential properties in the Republic of Ireland - a region that legally requires rental properties to display energy performance certificates when advertised. The findings suggest that the landlord-tenant problem is present in the Irish rental market but that it is not uniform across locations, indicating the influence of other factors. To explore this further, we exploit the regional variation in rental property prices. We find a larger difference between rental and non-rental properties' energy efficiency in markets with scarcity in rental property supply. |
| Keywords: | Energy efficiency; Market failures; Energy performance certificate (EPC); Coarsened exact matching (CEM); Residential properties; Information asymmetry; Split incentives |
| JEL: | Q40 R20 D12 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:ucn:wpaper:202028&r=all |
| By: | Clement Bonnet (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, Chaire économie du climat - Chaire économie du climat) |
| Date: | 2020–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02971680&r=all |
| By: | Joshua S. Graff Zivin; Matthew J. Neidell; Nicholas J. Sanders; Gregor Singer |
| Abstract: | Influenza and air pollution are significant public health risks with large economic consequences shared across the globe. The common etiological pathways through which they harm health present an interesting case of compounding risk via interacting externalities. Using regional and temporal variation in pollution and disease transmission, we find exposure to more air pollution significantly increases influenza hospitalizations. By exploiting the random deviations in influenza vaccine effectiveness over time, we show high influenza vaccine effectiveness neutralizes this relationship. This suggests seemingly disparate policy actions of pollution control and expanded vaccination provide greater returns than found when studied in isolation. |
| JEL: | H23 I12 Q53 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:27982&r=all |
| By: | Alessia Cafferata; Marwil J. Dávila-Fernández; Serena Sordi |
| Abstract: | Psychologists among other behavioural scientists refer to the tendency of favouring, interpreting, and searching for information that supports one's prior beliefs as confirmation bias. Using Twitter data, we illustrate how this might affect environmental attitudes by contrasting #ClimateChangeIsReal and #ClimateChangeHoax engagement. Given the relevance of the topic to the field, we develop an agent-based model to investigate how employment conditions affect attitudes towards climate policies under such a cognitive bias. It is shown that persistent endogenous fluctuations might emerge via a super-critical Neimark-Sacker bifurcation. Furthermore, depending on the individual's response to the collective opinion, we might have coexistence of periodic attractors as a representation of path dependence. In terms of policy implications, we highlight that the adoption of a successful green-agenda depends on the ability of policy-makers to take advantage of favourable employment rates while appealing to different framing strategies. |
| Keywords: | Climate change, con rmation bias, sentiment dynamics, group e ect, adaptive learning. |
| JEL: | D91 O44 Q56 |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:839&r=all |
| By: | David Ardia (Department of Decision Sciences, HEC Montréal); Keven Bluteau (Department of Decision Sciences, HEC Montréal; Department of Economics, Ghent University); Kris Boudt (Solvay Business School, Vrije Universiteit Brussel; Department of Economics, Ghent University; School of Business and Economics, Vrije Universiteit Amsterdam); Koen Inghelbrecht (Department of Economics, Ghent University) |
| Abstract: | We empirically test the prediction of Pastor, Stambaugh, and Taylor 2020 that green firms can outperform brown firms when climate change concerns strengthen unexpectedly for S&P 500 companies over the period January 2010 - June 2018. To capture unexpected increases in climate change concerns, we construct a Media Climate Change Concern index using climate change-related news published by major U.S. newspapers. We find a negative relationship between the firms' exposure to the Media Climate Change Concerns index and the level of the firm's greenhouse gas emission per unit of revenue. This result implies that when concerns about climate change rise unexpectedly, green firms' stock price increases, while brown firms' stock price decreases. Further, using topic modeling, we analyze which type of climate change news drives this relationship. We identify five themes that have an effect on green vs. brown stock returns. Some of those themes can be related to change in investors' expectations about the future cash-ow of green vs. brown firms, while others cannot. This result implies that the relationship between concern and green vs. brown stock returns arises from both investors updating their expectations about the future cash-ows of green and brown firms and changes in investors' sustainability taste. |
| Keywords: | Asset Pricing, climate change, Sustainable Investing, ESG, Greenhouse, Gas Emission, Sentometrics, Textual Analysis |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-395&r=all |
| By: | David Anthoff (University of California); Richard S. J. Tol (University of Sussex) |
| Abstract: | Weitzman's Dismal Theorem has that the expected net present value of a stock problem with a stochastic growth rate with unknown variance is unbounded. Cost-benefit analysis can therefore not be applied to greenhouse gas emission control. We use the Generalized Central Limit Theorem to show that the Dismal Theorem can be tested, in a finite sample, by estimating the tail index. We apply this test to social cost of carbon estimates from three commonly used integrated assessment models, and to previously published estimates. Two of the three models do not support the Dismal Theorem, but the third one does for low discount rates. The meta-analysis cannot reject the Dismal Theorem. |
| Keywords: | climate policy; dismal theorem; fat tails; social cost of carbon |
| JEL: | C46 D81 Q54 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:1920&r=all |
| By: | Olsen, Nils |
| Abstract: | The Vehicle Scheduling Problem (VSP) is a well-studied combinatorial optimization problem arising for bus companies in public transport. The objective is to cover a given set of timetabled trips by a set of buses at minimum costs. The Electric Vehicle Scheduling Problem (E-VSP) complicates traditional bus scheduling by considering electric buses with limited driving ranges. To compensate these limitations, detours to charging stations become necessary for charging the vehicle batteries during operations. To save costs, the charging stations must be located within the road network in such a way that required deadhead trips are as short as possible or even redundant. For solving the traditional VSP, a variety of solution approaches exist capable of solving even real-world instances with large networks and timetables to optimality. In contrast, the problem complexity increases significantly when considering limited ranges and chargings of the batteries. For this reason, there mainly exist solution approaches for the E-VSP which are based von heuristic procedures as exact methods do not provide solutions within a reasonable time. In this paper, we present a literature review of solution approaches for scheduling electric vehicles in public transport and location planning of charging stations. Since existing work differ in addition to the solution methodology also in the mapping of electric vehicles' technical aspects, we pay particular attention to these characteristics. To conclude, we provide a perspective for potential further research. |
| Keywords: | Vehicle Scheduling,Public Transport,Electric Buses,Charging Stations,Location Planning |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fubsbe:202016&r=all |
| By: | Khuong, Phuong M.; Scheller, Fabian; McKenna, Russell; Keles, Dogan; Fichtner, Wolf |
| Abstract: | Photovoltaic (PV) has recorded an impressive development in the last years. The increasing economic potential and further technological improvement will continue to reduce the cost of PV. However, it is not yet well adopted by household customers. Adversely, there is lacking empirical evidence for understanding residential PV adoption behaviour, which this study addresses with empirical research. Although a variety of models can be used to explain social acceptance (SA) and willingness to pay (WTP) for renewable energy, they overlook the connection between SA and WTP in the final purchase decision of a decision-maker. Based on a survey of both SA and WTP in the same observation sample of 2039 Vietnamese residents, this study introduces well-established models with a new linking psychological and economic aspects to measure multiple outcomes involving residential PV behaviours to testing hypotheses with no precedent in the literature. The theoretical and integrative moderated mediation models help to understand residential PV behaviour and suggest solutions for development by revealing how different factors affect SA and WTP in different manners. Environmental interest reveals the predictive power within the SA and WTP behaviour models. Meanwhile, PV knowledge drives SA, but not WTP in Vietnam. Attitude and Perceived behavioural control not only impact SA and WTP directly but also mediate the effect of Environmental interest and SA and WTP. Age & Marital status & Children and Place of residence are important covariates that drive in the SA and WTP models, respectively. Lastly, Income is the covariate in the SA model, but the moderator in the WTP model. In practical implications, this study provides evidence that residential PV is a lifestyle product rather than an economical product, but it is not considered as an essential good for household customers. Thereby, suggestions are given to policymakers and stakeholders to promote market development. |
| Keywords: | Developing country,Willingness to pay,Social acceptance,Residential photovoltaic |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:46&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of certainty equivalents for climate policy |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | D81 D83 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2089&r=all |
| By: | Matteo Bonato (Department of Economics and Econometrics, University of Johannesburg, Auckland Park, South Africa; IPAG Business School, 184 Boulevard Saint-Germain, 75006 Paris, France; Copenhagen Business School, Department of Economics, Porcelænshaven 16A, Frederiksberg DK-2000, Denmark; Central Bank of the Republic of Turkey, Haci Bayram Mah. Istiklal Cad. No:10 06050, Ankara, Turkey); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Christian Pierdzioch (Department of Economics, Helmut Schmidt University, Holstenhofweg 85, P.O.B. 700822, 22008 Hamburg, Germany) |
| Abstract: | We examine, using aggregate and sectoral U.S. data for the period 2008-2020, the predictive power of disentangled oil-price shocks for Real Estate Investment Trusts (REITs) realized market variance via the heterogeneous auto-regressive realized variance (HAR-RV) model. In-sample tests show that demand and financial-market risk shocks contribute to a larger extent to the overall fit of the model than supply shocks, where the in-sample transmission of the impact of the shocks mainly operates through their significant effects on realized upward (“good†) variance. Out-of-sample tests corroborate the significant predictive value of demand and risk shocks for realized variance and its upward counterpart at a short, medium, and long forecast horizon, for various recursive-estimation windows, for realized volatility (that is, the square root of realized variance), for a shorter sub-sample period that excludes the recent phase of exceptionally intense oil-market turbulence, and for an extended benchmark model that features realized higher-order moments, realized jumps, and a leverage effect as control variables. |
| Keywords: | Oil price; Shocks, REITs; Realized variance; Forecasting |
| JEL: | C22 C53 G10 Q02 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:2020100&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the impact of uncertainty, irreversibility and learning on climate policy |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | D81 D83 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2088&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the dismal theorem on climate policy |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | D81 D83 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2090&r=all |
| By: | Clement Bonnet (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Samuel Carcanague (IRIS - Institut de Relations Internationales et Stratégiques); Emmanuel Hache (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Gondia Seck (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Marine Simoën (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles) |
| Abstract: | Cette étude cherche à analyser trois enjeux au coeur de la transition vers les énergies renouvelables (ENR): (1) l'importance des matériaux nécessaires à la production des technologies des ENR ; (2) les dynamiques d'innovation dans ces technologies et le rôle qu'elles confèrent aux règles de la propriété intellectuelle ; (3) les interactions entre la transition énergétique et les économies exportatrices de combustibles fossiles. Ces trois sous-systèmes interagissent au sein du système plus large que constitue la géopolitique des énergies renouvelables. Les interactions entre ces différentes dimensions s'avèrent essentielles à analyser dans le cadre de la coopération internationale pour la lutte contre le changement climatique et pour comprendre les futurs jalons d'un nouvel ordre énergétique mondial. L'originalité de ce travail est de démontrer que l'analyse de la transition énergétique ne doit pas se restreindre aux liens entre les politiques climatiques, l'innovation et le déploiement des ENR. Une vision plus large est nécessaire pour prendre en compte dans un premier temps les rétroactions négatives du déploiement des ENR via les secteurs des hydrocarbures et des métaux. D'autre part, il convient d'analyser de plus près la rétroaction de l'innovation sur les politiques climatiques pour s'assurer qu'une boucle positive se forme. Trois conclusions peuvent être tirées de ce travail au niveau national ou international en matière de politiques publiques : - Les pouvoirs de marché des pays producteurs des matériaux de la transition énergétique risquent de s'accentuer dans les années à venir et les politiques de recyclage pourraient permettre de réduire le coût de la transition énergétique ; - Les politiques climatiques doivent s'assurer que les droits de propriété intellectuelle ne deviennent pas un point de blocage de la négociation climatique ; - La diversification des économies productrices d'hydrocarbures est déterminante pour le déploiement des ENR et, plus largement, sur le rythme et les modalités de la transition énergétique au niveau global. En définitive, dans un contexte de généralisation des technologies bas-carbone, |
| Date: | 2019–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-02971706&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of first-best climate policy |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2083&r=all |
| By: | Banie Naser Outchiri (Université de Sherbrooke) |
| Abstract: | This paper attempts to contribute to the improvement of decomposition analyses for better policy-making. This is achieved under Shapley (1953)/Sun (1998)’s approach, by taking into account the net entry effect of products. Indeed, we propose to estimate the standard errors of contributions using bootstrapped normal-approximation confidence interval in order to investigate whether or not effects are significantly different from zero at standard significance levels. Therefore, our work introduces a new criterion for the choice of decomposition approaches, so-called accuracy criterion. The application is based on a decomposition of CO2 emissions embodied in China’s bilateral trade (EEBT). The results show that omitting the net entry effect can lead to under- or over-estimates of the contributions, wrong signs and even a wrong order of magnitude of the contributions, and incorrect estimation of the effects’ accuracy. Also, the analyses reveal that the effects may have different accuracy levels and some effects (even those with large magnitude contributions) may be non-significantly different from zero. This implies that there are effects that are not relevant to the explanation of China’s EEBT. Our results therefore suggest that not considering the net entry effect or not being aware of the effects’ accuracy may lead to incorrect economic interpretations and misguided policy-making. Another interesting point arising from the methodology is that the complexity of S/S’s approach, as the number of effects increases, should go hand in hand with the results’ accuracy. Hence, from this standpoint, the S/S’s approach should be preferred when the number of effects is high, contrary to what is stated in the literature. |
| Keywords: | Decomposition analysis, Shapley (1953)/Sun (1998)’s approach, Bootstrapped confidence interval, Net entry effect, Effects’ accuracy. |
| JEL: | C18 C43 P28 Q48 Q58 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:shr:wpaper:20-11&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the equity weights for climate policy |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | D63 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2091&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the ethics of climate policy |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2092&r=all |
| By: | Strulik, Holger; Werner, Katharina |
| Abstract: | We investigate renewable resources when the harvesting agents face self-control problems. Individuals are conceptualized as dual selves. The rational long-run self plans for the infinite future while the affective short-run self desires to maximize instantaneous profits. Depending on the degree of self-control, actual behavior is partly driven by short-run desires. This modeling represents impatience and present bias without causing time inconsistent decision making. In a model of a single harvesting agent (e.g. a fishery), we discuss how self-control problems affect harvesting behavior, resource conservation, and sustainability and discuss policies to curb overuse and potential collapse of the resource due to present-biased harvesting behavior. We then extend the model to several harvesting agents and show how limited self-control exacerbates the common pool problem. Finally, we investigate heterogenous agents and show that there are spillover effects of limited self-control in the sense that perfectly rational agents also behave less conservatively when they interact with agents afflicted by imperfect self-control. |
| Keywords: | self-control,temptation,renewable resource use,sustainability,common pool resource management |
| JEL: | D60 D90 Q20 Q50 Q58 O40 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cegedp:408&r=all |
| By: | Reinhardt, Karl; Deakin, Elizabeth SM., J.D. |
| Abstract: | This research projects evaluates the social, environmental, and safety impacts of shared electric scooters (e-scooters)’ through a literature review, a nationwide scan of state and local laws and regulations, and a case study of Oakland’s experience with e-scooters, including an analysis of the city’s user survey and our own in-depth interviews. E-scooters offer an enjoyable, low-cost travel option, but are used mainly by young, affluent, white males. To improve equity, cities are requiring e-scooter rental companies to serve low-income and minority communities and some further mandate that a share of the e-scooters accommodate people with disabilities. E-scooters are quiet and produce no tailpipe emissions, but their cumulative environmental impact depends on their manufacture, useful life, disposal, and use. In early applications, rental e-scooters survived less than a year. Some 30-50 percent of e-scooter trips replace short auto trips. Cities and states can improve e-scooter safety by encouraging helmet use, offering rider training, limiting speeds, improving pavements, managing parking, and calming traffic. |
| Keywords: | Social and Behavioral Sciences, Scooters, electric vehicles, vehicle sharing, regulations, travel behavior, traffic safety, equity, environmental impacts |
| Date: | 2020–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt8x67x360&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the Ramsey Rule for time discounting |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | H43 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2085&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the secondary benefits of climate policy |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2084&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of hyperbolic time discounting |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | H43 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2086&r=all |
| By: | Hakan Yilmazkuday (Department of Economics, Florida International University) |
| Abstract: | Daily data at the U.S. county level suggest that coronavirus disease 2019 (COVID-19) cases and deaths are lower in counties where a higher share of people have stayed in the same county (or travelled less to other counties). This observation is tested formally by using a difference-in-difference design controlling for county-fixed effects and time-fixed effects, where weekly changes in COVID-19 cases or deaths are regressed on weekly changes in the share of people who have stayed in the same county during the previous 14 days. A counterfactual analysis based on the formal estimation results suggests that staying in the same county has the potential of reducing total weekly COVID-19 cases and deaths in the U.S. as much as by 139,503 and by 23,445, respectively. |
| Keywords: | COVID-19, Coronavirus, Same-County Stayers, County-level Investigation, the U.S. |
| JEL: | I10 I18 R41 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:2007&r=all |
| By: | Emanuele Campiglio; Simon Dietz; Frank Venmans |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-393&r=all |
| By: | Gundel, Joakim |
| Abstract: | The prospects around hydrocarbons (oil and gas) and future oil concessions have been accelerating in Somalia since 2012. The potential in this sector is already an important factor in political dynamics in the country, as seen for example in the ongoing maritime dispute with Kenya, as well as through the interests of several different countries and the involvement of a number of commercial actors. This memo argues that, while legislation and regulation, at least nominally, has been progressing in the last 3-4 years, it remains unfinished but now frames the operation of the political marketplace, with control over the Ministry of Petroleum and Somalia Petroleum Agency (SPA) constituting the key motivations of political elites and associated bargaining. Control of these ‘institutions’ enables access to informal flows of money as well as allows control over the allocation of sub-contracts, which are likely to come from the various grants and loans that will become available through the debt relief process. Control over contracts is a major issue in Somalia’s political economy and political marketplace. The memo highlights the underlying dynamics behind the regulatory developments and the push for – arguably premature – auctioning. It suggests that speculation is feeding the political marketplace in Somalia; speculation in future oil wealth (in the shortterm through foreign oil companies that are willing to pay access fees, rents and other inducements up front). In addition, speculation on the operational sub-contracts that exploration will generate (logistics, security, accommodation and hospitality). These drivers are elevated in the current pre-election period, where potential unconditional cash injections and the political trading around key positions – and the control or influence of contracts – in the emerging ‘institutions’ are important dynamics. The establishment of the federal government in Mogadishu, in 2012, has changed the organisation of this sector bringing it under a central authority where for years previously arrangements were made with regional authorities. In addition, past controversies associated with Soma Oil (Coastal Exploration) and TGS (Spectrum) still cast a shadow over the Somali petroleum sector and serve a useful purpose in highlighting the reputational risks of opaque engagement in this area and the need for proper regulation and oversight. |
| JEL: | R14 J01 E6 |
| Date: | 2020–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:107126&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of political targets for greenhouse gas emissions and climate change |
| Keywords: | environmental economics, climate change, undergraduate, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2082&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of axioms for intertemporal welfare functions |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | H43 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2087&r=all |
| By: | Marinus Arrey Arrey (University of Yaoundé II, Cameroon Yaoundé) |
| Abstract: | This study sets out to estimate the determinants of household economic wellbeing and to evaluate the relative contributions of regressed-income sources in explaining measured inequality. In particular, a regression-based decomposition approach informed by the Shapley value, the instrumental variables econometric method, and the 2007 Cameroon household consumption survey, was used. This approach provides a flexible way to accommodate variables in a multivariate context. The results indicate that the household stock of education, age, credit, being bilingual, radio and electricity influence wellbeing positively, while rural, land and dependency had a negative impact on wellbeing. Results also show that rural, credit, bilingualism, education, age, dependency and land, in that order, are the main contributors to measured income inequality, meanwhile, the constant term, media and electricity are inequality reducing. These findings have policy implications for the ongoing drive to scale down both inequaly and poverty in Cameroon |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:aer:wpaper:378&r=all |
| By: | Ado Adamou Abba Ari; Andrea Araldo; Andr\'e De Palma; Vincent Gauthier |
| Abstract: | Carpooling is a system in which drivers accept to add some limited detours to their habitual journeys to pick-up and drop-off other riders. Most research and operating platforms present carpooling as an alternative to fixed schedule transit and only very little work has attempted to integrate it with fixed-schedule mass transit. The aim of this paper is to showcase the benefits of such integration, under the philosophy of Mobility as a Service (MaaS), in a daily commuting scenario. We present an integrated mass transit plus carpooling system that, by design, constructs multimodal trips, including transit and carpooling legs. To this aim, the system generates vehicle detours in order to serve transit stations. We evaluate the performance of this system via simulation. We compare the ``Current'' System, where carpooling is an alternative to transit, to our ``Integrated'' System, where carpooling and transit are integrated in a single system. We show that, by doing this, the transportation accessibility greatly increases: about 40\% less users remain without feasible travel options and the overall travel time decreases by about 10\%. We achieve this by requiring relatively small driver detours, thanks to a better utilization vehicle routes, with drivers' vehicles driving on average with more riders on board. The simulation code is available open source. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2010.13438&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the impacts of climate on economic development |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2081&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the impacts of climate change on economic growth |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2080&r=all |
| By: | Cong Ma (Department of Mathematics, University of Leuven, School of Mathematics and Statistics, Xi’an Jiaotong University); Wim Schoutens (Department of Mathematics, University of Leuven); Jan Beirlant (Department of Mathematics, University of Leuven); Jan De Spiegeleer (Department of Mathematics, University of Leuven); Stephan Höcht (Assenagon GmbH,); Robert Van Kleeck (Assenagon GmbH,) |
| Abstract: | A green bond is a type of fixed-income security that raises money to invest in predetermined climate and environmental projects, in contrast to conventional debt instruments, where the use of proceeds is not specifed in the terms. The difference in yield between a green bond and an otherwise identical non-green bond of the same issuer and with the same terms is called the greenium. In this paper, we investigate this yield differential between green and conventional bonds. We estimate the greenium on the basis of the bond's asset swap spread (ASW) to investigate whether, consistent with a non-pecuniary motive for holding green assets, green labels are associated with a negative or positive yield gap with respect to ordinary bonds. We calculate and compare several descriptive statistics of green bonds and conventional bonds. Then, several statistical tests are implemented to analyze potential statistical differences between their return distributions. In our analysis, synthetic non-green bonds are constructed via interpolation of the ASW curve of non-green bonds. There are several ndings: (1) From a statistical point of view, no difference between the overall distribution, the mean or median of ASW changes is detected on individual bond pairs. However, our estimation of an overall greenium exhibits a level uctuating near zero over time with an overall average around -7 bps. (2) In addition, we see indications that the volatility of some green-bonds is lower than their non-green counterparts. (3) We see a lagging e ect between the greenium and stress in nancial markets. This could indicate that sustainable investments like green bonds are potentially more immune to systemic crises. |
| Keywords: | Green bond, Greenium, Return Distribution, Fat Tails, Non-normal Distribution |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-394&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the relative merits of development assistance and greenhouse gas emission reduction to reduce the economic impacts of climate change |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2079&r=all |
| By: | Hans Degryse (KU Leuven and CEPR); Tarik Roukny (KU Leuven); Joris Tielens (National Bank of Belgium) |
| Abstract: | In the race against climate change, financial intermediaries hold a key role in rapidly redirecting resources towards greener economic activities. However, this transition entails a dilemma for banks: entry of innovative and green firms in polluting industries risks devaluating legacy positions held with incumbent clients. As a result, banks exposed to such losses may be reluctant to finance innovation aiming to reduce polluting activities such as green house gas emissions. In this paper, we formalize potential banking barriers to investments in green firms that threaten the value of legacy contracts by affecting collateral pledged by incumbent clients to banks as well as probabilities of default. We show that themore homogeneous and concentrated the banking system is in a given industry, the fewer new innovative firms will be granted loanable funds. We further exploit data on credit allocations in Belgium between 2008 and 2018, to investigate the empirical relevancy of such barriers in polluting industries with larger exposures to green technology disruption. The results indicate that the market structure of the banking system may be key to facilitating a green economic transition highlighting the need for policies to address the role of brown legacy positions and heterogeneous bank business models. |
| Keywords: | Financial Intermediation, innovation, barriers, climate change |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-391&r=all |
| By: | Hakan Yilmazkuday (Department of Economics, Florida International University) |
| Abstract: | Daily Google mobility data covering 130 countries over the period between February 15th, 2020 and May 2nd, 2020 suggest that less mobility is associated with lower COVID-19 cases and deaths. This observation is formally tested by using a difference-in-difference design, where country-fixed effects, day-fixed effects as well as the country-specific timing of the 100th COVID-19 case are controlled for. The results suggest that 1% of a weekly increase in being at residential places leads into about 70 less weekly COVID-19 cases and about 7 less weekly COVID-19 deaths, whereas 1% of a weekly decrease in visits to transit stations leads into about 33 less weekly COVID-19 cases and about 4 less weekly COVID-19 deaths, on average across countries. Similarly, 1% of a weekly reduction in visits to retail & recreation results in about 25 less weekly COVID-19 cases and about 3 less weekly COVID-19 deaths, or 1% of a weekly reduction in visits to workplaces results in about 18 less weekly COVID-19 cases and about 2 less weekly COVID-19 deaths. |
| Keywords: | Coronavirus, Stay-at-Home, Google Mobility |
| JEL: | I10 I18 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:2008&r=all |
| By: | Roy, Roger |
| Keywords: | Public Economics |
| Date: | 2020–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ctrf21:305944&r=all |
| By: | IKEDA Shin Suke |
| Abstract: | I analyze data of equilibrium day-ahead prices, trading volumes, sell and buy order volumes at the Japan Electric Power Exchange (JEPX) from 30-March-2015 to 9-July-2020. A time-series analysis suggests that (a) the sell bid, buy bid and transaction volumes have followed a strong co-cycling trend since the beginning of the implicit auction of the transmission line right, and (b) the trading volume is stably related to 83% of the buy order volume. Additionally, I estimate the price elasticities of demand and supply from surveillance reports and show that (c) individual quarter transition is parallel to the price-trading volume ratio. A cross-sectional analysis suggests (d) the first and second quarter's day-time sell order volume is increasing over years, and (e) stronger pattern on weekends and holidays. Finally, I explore the implications of the above in terms of the effect of photovoltaic power generation on recent price decline during the COVID-19 pandemic, and on the form and location of the market demand curve. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:20040&r=all |
| By: | Paolo E. Giordani (Dept. of Economics and Finance, LUISS University); Francesco Rullani (Dept. of Management, Università Ca' Foscari Venice) |
| Abstract: | We develop a simple model of digital markets to analyze the impact of Covid-19 on the digital transformation of sectors. The lockdown due to Covid-19 is modeled as a shock that wipes out the physical market, temporarily leaving digital consumption as the only option. Under plausible assumptions on digital demand and supply, the model predicts that such temporary shock produces an irreversible rise of the digital markets. This happens for three distinct reasons. First, by temporarily eliminating the physical market, Covid-19 provides a strong incentive for firms to carry out the fixed investments necessary to venture into the digital market (supply channel). Secondly, by forcing even the most reluctant consumers into the digital market, Covid-19 pushes them to familiarize with digital platforms, and this confidence endures in the post-Covid era (demand channel). Finally, if consumers' taste for digitalization is affected by the size of the digital market, a market may be entrapped into a low-digital equilibrium indefinitely. In such context, the lockdown due to the pandemic is the shock that may unleash the forces of digitalization and tilt the entire sector towards a high-digital equilibrium (network externalities channel). |
| Keywords: | digital transformation, digitalization, Covid-19, pandemic, disruptive technologies |
| JEL: | O3 L8 D8 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:vnm:wpdman:176&r=all |