nep-ene New Economics Papers
on Energy Economics
Issue of 2020‒12‒07
53 papers chosen by
Roger Fouquet
London School of Economics

  1. A review of challenges from increasing renewable generation in the Indian Power System By Debnath, R.; Mittal, V.; Jindal, A.
  2. Solar Bait: How U.S. States Attract Solar Investments from Large Corporations By Jed J. Cohen; Levan Elbakidze; Randall Jackson
  3. Grid Energy Storage Assessment for Select Vehicle Electrification Scenarios By Raju, Arun S.K.; Vu, Alexander
  4. The Value of Storage in Electricity Generation: A Qualitative and Quantitative Review By Amro Elshurafa
  5. Economic Efficiency of Alternative Border Carbon Adjustment Schemes: A Case Study of California Carbon Pricing and the Western North American Power Market By Xu, Q.; Hobbs, B.
  6. Overlapping Climate Policies By Perino, G.; Ritz, R.; van Benthem, A.
  7. CO2 emissions embodied in international trade and domestic final demand: Methodology and results using the OECD Inter-Country Input-Output Database By Norihiko Yamano; Joaquim Guilhoto
  8. A deep-narrative analysis of energy cultures in slum rehabilitation housing of Abuja, Mumbai and Rio de Janeiro for just policy design By Debnath, R.; Bardhan, R.; Darby, S.; Mohaddes, K.; Sunikka-Blank, M.; Coelho, A C V., Isa, A.; Isa, A.
  9. The Path Toward a Hydrogen Economy: How Industry Can Broaden the Use of Hydrogen By KAPSARC, King Abdullah Petroleum Studies and Research Center
  10. Effective Carbon Prices and Sub-Global Climate Cooperation By Dominioni, Goran
  11. On the time-dependency of MAC curves and its implications for the EU ETS By Hintermayer, Martin; Schmidt, Lukas; Zinke, Jonas
  12. Green Hydrogen in Developing Countries By Energy Sector Management Assistance Program
  13. Deploying Storage for Power Systems in Developing Countries By Energy Sector Management Assistance Program
  14. From passive to active: Flexibility from electric vehicles in the context of transmission system development By Philipp Andreas Gunkel; Claire Bergaentzl\'e; Ida Gr{\ae}sted Jensen; Fabian Scheller
  15. Reviewing energy system modelling of decentralized energy autonomy By Jann Michael Weinand; Fabian Scheller; Russell McKenna
  16. Nonlinear Mixed Effects Models for Time Series Forecasting of Smart Meter Demand By Cameron Roach; Rob J Hyndman; Souhaib Ben Taieb
  17. How financial markets react to Total’s strategy of becoming a responsible energy major? By Margaux Escoffier
  18. Heterogeneity in the Rebound Effect: Evidence from Efficient Lighting Subsidies By Ensieh Shojaeddini
  19. CO2 Emissions, Environmental Provisions and Global Value Chains in MENA Countries By Insaf Guedidi; Leila Baghdadi
  20. Optimal federal co-regulation of renewable energy deployment By Meier, Jan-Niklas; Lehmann, Paul
  21. Planning for Efficient Dispatch By World Bank
  22. Will Urbanization in Developing Countries Reduce Carbon Emissions? Panel Data Evidence from Pakistani Household Surveys By Hasan, Syed M.; Zhang, Wendong
  23. Dependence structure between oil price volatility and sovereign credit risk of oil exporters: Evidence using a Copula Approach By Yao Axel Ehouman
  24. How effective are EU minimum energy performance standards and energy labels for cold appliances? By Schleich, Joachim; Durand, Antoine; Brugger, Heike
  25. Warranties for Battery Energy Storage Systems in Developing Countries By Energy Sector Management Assistance Program
  26. Determining the efficiency of residential electricity consumption By Andor, Mark Andreas; Bernstein, David H.; Sommer, Stephan
  27. Pricing in Integrated Heat and Power Markets By Alvaro Gonzalez-Castellanos; David Pozo; Aldo Bischi
  28. The Electoral Consequences of Nuclear Fallout: Evidence from Chernobyl By Mehic, Adrian
  29. Land, water and energy: the crossing of governance By Armario Benitez, Julia I.; San Juan Mesonada, Carlos
  30. Energy Security and Portfolio Diversification: The Exporter’s Perspective By Rolando Fuentes
  31. Competition between simultaneous demand-side flexibility options: The case of community electricity storage systems By Fabian Scheller; Robert Burkhardt; Robert Schwarzeit; Russell McKenna; Thomas Bruckner
  32. The Cost of Reducing Greenhouse Gas Emissions in Shipping By Tristan Smith
  33. The Crude Oil Market and US Economic Activity: Revisiting the Empirical Evidence By Erkal Ersoy
  34. Covid 19 and loss of production – an estimate for Portugal from electricity consumption By Miguel St.Aubyn
  35. Energy Security and Portfolio Diversification: The Exporter’s Perspective By Philipp Galkin; Carlo Andrea Bollino
  36. Social acceptance of electric mobility in Germany By Burghard, Uta; Scherrer, Aline; Dütschke, Elisabeth; Globisch, Joachim
  37. Managing Social Risks and Impacts from Hydropower Development By Nguyen Quy Nghi; Martin H. Lenihan; Claude Saint-Pierre; Nguyen Thi Minh Phuong; Phan Huyen Dan
  38. Citizen involvement in the energy transition: Highlighting the role played by the spatial heterogeneity of preferences in the public acceptance of biofuels By Anthony PARIS; Pascal GASTINEAU; Pierre-Alexandre MAHIEU; Benoît CHEZE
  39. Effect of Rare Disaster Risks on Crude Oil: Evidence from El Nino from Over 140 Years of Data By Riza Demirer; Rangan Gupta; Jacobus Nel; Christian Pierdzioch
  40. Best Investments for an Economic Recovery from Coronavirus By Samuel Fargher; Stephane Hallegatte
  41. Shadow economy and populism-risk and uncertainty factors for establishing low-carbon economy of Balkan countries-case study for Bulgaria By Shteryo Nozharov; Nina Nikolova
  42. Willingness-to-pay for reducing air pollution in the world’ most dynamic cities: Evidence from Hanoi, Vietnam By Khuc, Quy Van; Nong, Duy; Phu, Tri Vu
  43. Dekarbonisierung bis zum Jahr 2050? Klimapolitische Maßnahmen und Energieprognosen für Deutschland, Österreich und die Schweiz By Frondel, Manuel; Thomas, Tobias
  44. Proposing the Method to Predict the Breakeven Oil Price for Hedging and Sustainable Finance in Oil Exporting Countries: An Empirical Study in Algeria Using the Blackscholes Model By Bendob Ali; Naima Bentouir
  45. Price formation and optimal trading in intraday electricity markets with a major player By Olivier F\'eron; Peter Tankov; Laura Tinsi
  46. External and Internal Real Exchange Rates and the Dutch Disease in Africa: Evidence from a Panel of Nine Oil-Exporting Countries By Edouard Mien
  47. Analysis of Inflation Trends in Urban and Rural Parts of Azerbaijan: Main Drivers and Links to Oil Revenue By Niftiyev, Ibrahim
  48. Economic Diversification, Oil Revenue Management, and Industrial Policy in the Middle East and North Africa By Amir Lebdioui
  49. Cultural norms and corporate fraud: Evidence from the Volkswagen scandal By Hasan, Iftekhar; Noth, Felix; Tonzer, Lena
  50. Online Appendix to "Resource Booms and the Macroeconomy: The Case of U.S. Shale Oil" By Nida Cakir Melek; Michael Plante; Mine Yucel
  51. Long-Term Economy-Wide Impacts of the Grand Ethiopian Renaissance Dam on Sudan By Khalid Siddig; Mohammed Basheer; Jonas Luckmann
  52. The inner-city inhabitants and foreigners’ contribution commitment to improving air pollution: Dataset from a field survey in Hanoi By Khuc, Quy Van; Phu, Tri Vu; Vuong, Quan-Hoang; Le, Tuyet-Anh T.
  53. Coal Slurry Pipelines: Water Implications By Rockey, Craig F.

  1. By: Debnath, R.; Mittal, V.; Jindal, A.
    Abstract: About 70% of India’s current energy mix comprises of coal, and the increase in generation from renewable energy (RE) sources is affecting the health of the power system. We investigated this effect through a cross-sectional of asset utilisation, cost and the social disruption caused by accelerating RE into the Indian Power System. We also derived a challenge-roadmap for the power system using bibliometric analysis. The review-driven interpretivist results revealed that increasing RE generation is pushing the coal plants to operate in low-loading conditions, causing heightened wear and tear of the plant as they are not suitable for flexible operation. It had tremendously increased the operation and maintenance costs of the brownfield plants. While there is a growing scope for cross border trade of electricity, the existing regulatory mechanism poses severe implementation challenges. Social disruption due to shift from coal-economy illustrated a holistic view of the political economy of the Indian power system that can potentially cause large-scale conflict and disrupt the national economy at an unprecedented scale. Policy implications outlined by our study for the draft Electricity (Amendment) Bill 2020 include scoping a socio-technical framework which supports just energy transition through better financial support mechanisms for flexible operation of coal plants. Focusing on clean-up over shut-down of coal plants and facilitating investments in battery storage technologies and cross-border electricity trade as RE and conventional fuel reach market parity.
    Keywords: Power System, Flexibility, Coal economy, Social disruption, Energy Transition, Electricity Bill 2020
    JEL: Q4 Q42 Q48
    Date: 2020–11–17
  2. By: Jed J. Cohen (The Energy Institute at Johannes Kepler University); Levan Elbakidze (Division of Resource Economics and Management and the Center for Innovation in Gas Research and Utilization, West Virginia University); Randall Jackson (Geology and Geography Department and Regional Research Institute, West Virginia University)
    Abstract: Past solar adoption literature has focused primarily on households without significant attention to the potential of commercial properties as sites for solar generation. We examine firms’ decisions to install solar panels on their properties using state and firm level data from the U.S. We are interested in the effects of state level characteristics, including policies and regulations, on firm decisions regarding solar investments. We find that state characteristics that influence the return-on-investment from solar installations, most notably solar intensity, are important for commercial adoption decisions. Further, the results suggest that certain state level policies, including solar carve-outs in renewable portfolio standards, financing programs and tax breaks, can incentivize firms to install solar panels. Across different model specifications, we observe that firm installation decisions are correlated with personal electric vehicle ownership rates. This may indicate a ‘green’ business marketing strategy, whereby firms install solar to improve their social responsibility image.
    Keywords: Solar adoption; Corporate solar; State solar policies; Renewable portfolio standards; Solar renewable energy credits
    JEL: D22 M14 Q40 Q48 Q42
    Date: 2020–01
  3. By: Raju, Arun S.K.; Vu, Alexander
    Abstract: California has set aggressive vehicle electrification goals to achieve its greenhouse gas (GHG) reduction targets. The state is also integrating renewable energy into the electric grid under the Renewables Portfolio Standard (RPS). Increasing electricity demand from electric vehicles, combined with increasing power generation from variable renewable energy sources like solar and wind, will require significantly increased electrical energy storage capabilities, such as batteries and pumped hydroelectric storage. Assessing long-term energy storage needs and deploying the necessary infrastructure will be critical for maintaining future grid reliability. Researchers at the University of California, Riverside analyzed several scenarios using the California Public Utilities Commission’s Resolve power system planning model to understand how vehicle electrification, renewable energy standards, and GHG reduction goals affect California’s mid- to long-term energy storage needs. This policy brief summarizes findings from that research. View the NCST Project Webpage
    Keywords: Engineering, Computer models, Demand, Electric vehicles, Energy storage systems, Fleet management, Greenhouse gases, Grids (Transmission lines), Range (Vehicles), Vehicle fleets
    Date: 2020–11–01
  4. By: Amro Elshurafa (King Abdullah Petroleum Studies and Research Center)
    Abstract: Electricity storage technology has many useful applications in the energy sector and can complement variable renewable power generation to achieve a low-carbon future. For policymakers, utilities, and investors, effective decisions in this context require an understanding of how to determine the monetary value of storage.
    Keywords: Electricity generation, Power sector, Storage, Electricity sector
    Date: 2020–11–26
  5. By: Xu, Q.; Hobbs, B.
    Abstract: A local jurisdiction that regulates power plant emissions, but participates in a larger regional power market faces the issue of emissions leakage, in which local emissions decrease, but emissions associated with the imported power increase. Border carbon adjustment (BCA) schemes can be imposed on imports in an attempt to lessen leakage. This paper explores the potential cost and emission impacts of alternative BCA policies that could be implemented in the California AB32 carbon pricing system. We focus on cost and emission impacts on the power sector in California and the rest of the Western Electricity Coordinating Council (WECC) region, the latter of which provides approximately 23.5% of California’s electricity requirements. With both a simple schematic model and a detailed WECC generation-transmission expansion planning model for the year 2034 called JHSMINE, we examine the following deemed emission rate schemes for estimating and charging for emissions associated with electricity imports: no BCA, facility (import source)-specific deemed rate, a facility-neutral and constant deemed rate, and a facility-neutral and dynamic deemed rate. Our results suggest that, compared with cases with either no BCA or a BCA using facility-based deemed emission rates, facility-neutral schemes can provide efficiency gains by simultaneously lowering WECC-wide emissions and costs without raising payments by California consumers. Emissions leakage declines greatly. The precise value of the deemed rate affects these gains. One particular facility-neutral dynamic scheme in which rates are set by marginal emission rates external to California provides the greatest gain in economic efficiency. Our results also show the impact of carbon pricing and BCAs on transmission investment economics: California’s unilateral AB32 carbon pricing encourages more interstate transmission expansion because power imports are more profitable; however, BCAs that are cost-effective in lowering total regional emissions will dampen those incentives.
    Keywords: Carbon policy, Border carbon adjustment, Electricity markets, Expansion planning, Market efficiency
    JEL: H23 L94 Q48
    Date: 2020–11–24
  6. By: Perino, G.; Ritz, R.; van Benthem, A.
    Abstract: Major carbon-pricing systems in Europe and North America involve multiple jurisdictions (countries or states). Individual jurisdictions often pursue additional Initiatives – such as unilateral carbon price oors, legislation to phase out coal, aviation taxes or support programs for renewable energy – that overlap with the wider carbon-pricing system. We develop a general framework to study how the climate benefit of such overlapping policies depends on their design, location and timing. Some policies leverage additional climate benefits elsewhere in the system while others backfire by raising aggregate emissions. Our model encompasses almost every type of carbon-pricing system used in practice.
    Keywords: Overlapping policy, internal carbon leakage, waterbed effect, cap-and-trade, carbon pricing, hybrid regulation
    JEL: H23 Q54
    Date: 2020–11–24
  7. By: Norihiko Yamano; Joaquim Guilhoto
    Abstract: This paper describes the sources and methods used to estimate carbon emissions embodied in final demand and international gross trade for 65 economies over the period 2005-2015. Earlier OECD analyses of carbon footprints, accounting for global production networks, helped raise awareness of divergences between territorial and resident principles, and between production-based and consumption-based carbon emissions. Understanding the differences in these measures is important for governments to better understand and address greenhouse gas mitigation options. Thus, a new refined methodology was applied to allocate territorial emissions to production-based emissions (industries and households) using OECD Inter-Country Input-Output tables and International Energy Agency (IEA) CO2 emissions from fuel combustion statistics. In particular, this methodology introduces: 1) explicit distinctions between territorial and resident principles, economic output and final demand-based emissions and emissions embodied in gross imports and exports; 2) estimates by major fuel combustion sources; and 3) fuel purchases by non-resident industries and households.
    Keywords: CO2 emissions, Consumption-based accounting, Inter-Country Input-Output, International trade
    Date: 2020–11–23
  8. By: Debnath, R.; Bardhan, R.; Darby, S.; Mohaddes, K.; Sunikka-Blank, M.; Coelho, A C V., Isa, A.; Isa, A.
    Abstract: Slum rehabilitation housing (SRH) are critical transitional spaces in urban informality that has deep-rooted implications on poverty alleviation efforts. However, current literature reports systemic injustices in SRH on access to essential services, including energy injustices. This study investigated distributive injustices in the SRH across three cities, Abuja, Mumbai and Rio de Janeiro, developing ‘energy cultures’ narratives. It employed a computational social science methodology that used textual analysis, followed by a constructivist grounded theoretic approach to inform just policy design. The analysis was performed at two scales to identify and contrast injustices in the study areas. The result at an aggregated scale showed commonalities were around the poor design of the built environment, administrative lags of the utilities and high electricity bills. Case study-specific results showed that poverty penalties were linked with the energy cultures of each SRHs. In the Mumbai case, poverty penalties were associated with the aspirational purchase of household appliances due to move from slums to SRH. The Abuja case showed low power quality and load shedding frequently damaged appliances that increase the maintenance costs for the occupants. The Rio de Janeiro SRH case had injustices embedded through the adoption of inefficient appliances received as charity from higher-income households. Fuel stacking was also observed in the SRH that illustrated cultural identities associated with cooking energy. The conclusion was drawn to support just policy design by considering the socio-cultural context of the built environment, improving utility governance and promoting cleaner fuel mix at the household level.
    Keywords: Energy justice, poverty, computational social science, energy cultures, machine learning
    Date: 2020–11–11
  9. By: KAPSARC, King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center)
    Abstract: In the past couple of years, it became evident that hydrogen would need to play a pivotal role in a carbon-free energy system. It would help decarbonize hard-to-abate sectors and act as an energy carrier to manage large variability in renewable energy production and enhance energy security. In most cases, its transportation and storage over a certain distance and timeframe is cheaper than that of electricity. For hydrogen to make an impact, it needs to expand its utility beyond its existing applications.
    Keywords: Hydrogen, Renewable energy, Hydrogen exploration
    Date: 2020–11–26
  10. By: Dominioni, Goran
    Abstract: Scholarly and policy interest in carbon pricing coalitions is growing. Existing research analyzes design features that can increase the environmental effectiveness and political resilience of coalitions centered around carbon taxes and carbon markets (i.e. explicit carbon pricing). This article is the first that analyzes the advantages and disadvantages of building carbon pricing coalitions around effective carbon pricing compared to the standard design that focuses on explicit carbon pricing. In this article, measures of effective carbon prices include carbon prices implemented via carbon taxes, carbon markets, fuel taxes, and fossil fuel subsidies reforms. The article describes four design options to build carbon pricing coalitions - three built on measures of effective carbon pricing and one that focuses exclusively on explicit carbon pricing - and benchmarks them against six criteria. The key results are that building carbon pricing coalitions around effective carbon prices has various advantages over the most common alternative discussed in the literature. These advantages include higher transparency, broader participation, higher legitimacy of the coalition, and more substantial involvement of Finance Ministries in climate change mitigation. These advantages might translate in comparable or even higher environmental effectiveness than coalitions that focuses exclusively on explicit carbon pricing.
    Date: 2020–11–20
  11. By: Hintermayer, Martin (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Schmidt, Lukas (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Zinke, Jonas (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: Recently, several articles rely on marginal abatement cost (MAC) curves to analyze the EU ETS. While the assumptions on MAC curves drive the results, the prevailing literature on the EU ETS does not take the shape of MAC curves into account. This paper discusses the implications of MAC curve properties for the EU ETS. With a partial equilibrium model of the European power sector, we derive two essential properties of MAC curves: First, the shape of MAC curves is convex and depends on economic developments, e.g., fuel prices and interest rates. Second, MAC curves flatten over time, mainly due to enlarging investment opportunities. With convex MAC curves, marginal abatement costs in the EU ETS increase over time, which triggers higher banking of firms. On the contrary, flattening MAC curves over time lead to lower incentives for banking. In particular, short-term MAC curves are steep and thus, raise the price path.
    Keywords: EU ETS; Marginal Abatement Cost Curves; Emission Abatement; Power Sector Modeling
    JEL: C61 H23 Q41 Q58
    Date: 2020–11–25
  12. By: Energy Sector Management Assistance Program
    Keywords: Energy - Energy Conservation & Efficiency Energy - Energy and Environment Energy - Renewable Energy Environment - Climate Change Mitigation and Green House Gases Environment - Climate Change and Environment
    Date: 2020–08
  13. By: Energy Sector Management Assistance Program
    Keywords: Energy - Electric Power Energy - Energy Policies & Economics Energy - Energy Sector Regulation Energy - Energy Technology & Transmission Energy - Renewable Energy
    Date: 2020–08
  14. By: Philipp Andreas Gunkel; Claire Bergaentzl\'e; Ida Gr{\ae}sted Jensen; Fabian Scheller
    Abstract: Community electricity storage systems for multiple applications promise benefits over household electricity storage systems. More economical flexibility options such as demand response and sector coupling might reduce the market size for storage facilities. This paper assesses the economic performance of community electricity storage systems by taking competitive flexibility options into account. For this purpose, an actor-related, scenario-based optimization framework is applied. The results are in line with the literature and show that community storage systems are economically more efficient than household storage systems. Relative storage capacity reductions of community storage systems over household storage systems are possible, as the demand and generation profiles are balanced out among end users. On average, storage capacity reductions of 9% per household are possible in the base case, resulting in lower specific investments. The simultaneous application of demand-side flexibility options such as sector coupling and demand response enable a further capacity reduction of the community storage size by up to 23%. At the same time, the competition between flexibility options leads to smaller benefits regarding the community storage flexibility potential, which reduces the market viability for these applications. In the worst case, the cannibalization effects reach up to 38% between the flexibility measures. The losses of the flexibility benefits outweigh the savings of the capacity reduction whereby sector coupling constitutes a far greater influencing factor than demand response. Overall, in consideration of the stated cost trends, the economies of scale, and the reduction possibilities, a profitable community storage model might be reached between 2025 and 2035. Future work should focus on the analysis of policy frameworks.
    Date: 2020–11
  15. By: Jann Michael Weinand; Fabian Scheller; Russell McKenna
    Abstract: Research attention on decentralized autonomous energy systems has increased exponentially in the past three decades, as demonstrated by the absolute number of publications and the share of these studies in the corpus of energy system modelling literature. This paper shows the status quo and future modelling needs for research on local autonomous energy systems. A total of 359 studies are roughly investigated, of which a subset of 123 in detail. The studies are assessed with respect to the characteristics of their methodology and applications, in order to derive common trends and insights. Most case studies apply to middle-income countries and only focus on the supply of electricity in the residential sector. Furthermore, many of the studies are comparable regarding objectives and applied methods. Local energy autonomy is associated with high costs, leading to levelized costs of electricity of 0.41 $/kWh on average. By analysing the studies, many improvements for future studies could be identified: the studies lack an analysis of the impact of autonomous energy systems on surrounding energy systems. In addition, the robust design of autonomous energy systems requires higher time resolutions and extreme conditions. Future research should also develop methodologies to consider local stakeholders and their preferences for energy systems.
    Date: 2020–11
  16. By: Cameron Roach; Rob J Hyndman; Souhaib Ben Taieb
    Abstract: Buildings are typically equipped with smart meters to measure electricity demand at regular intervals. Smart meter data for a single building have many uses, such as forecasting and assessing overall building performance. However, when data are available from multiple buildings, there are additional applications that are rarely explored. For instance, we can explore how different building characteristics influence energy demand. If each building is treated as a random effect and building characteristics are handled as fixed effects, a mixed effects model can be used to estimate how characteristics affect energy usage. In this paper we demonstrate that producing one day ahead demand predictions for 123 commercial office buildings using mixed models can improve forecasting accuracy. We experiment with random intercept, random intercept and slope, and nonlinear mixed models. The predictive performance of the mixed effects models are tested against naive, linear and nonlinear benchmark models fitted to each building separately. This research justifies using mixed models to improve forecasting accuracy and to quantify changes in energy consumption under different building configuration scenarios.
    Keywords: time series forecasting, mixed-effects models, smart meters, energy, electricity
    JEL: C10 C14 C52
    Date: 2020
  17. By: Margaux Escoffier
    Abstract: This paper investigates the market reaction to the upstream oil and gas and climate strategy of Total SA. It aims at (i) analyzing whether the market welcomes Total's climate commitment and (ii) comparing investors' reaction to both categories of announcements. By using an event study, our results highlight that the market reacts negatively to both Total's upstream oil and gas and climate strategy. However, the market reacts more negatively to its climate strategy meaning that investors may consider that Total has to do better in terms of climate commitment to mitigate the risk of climate change.
    Keywords: Energy transition; climate strategy; financial markets; event study; oil and gas companies; Total SA
    JEL: G14 L25 Q54
    Date: 2020
  18. By: Ensieh Shojaeddini (National Center for Environmental Economics, US EPA)
    Abstract: This paper quantifies heterogeneity in rebound effects from policy-induced energy efficiency improvements by income and home size. We do so in a relatively understudied context: residential lighting. This context allows us to separately estimate effects for energy services (lighting hours) and electricity consumption. We identify the effect of household-level subsidy uptake using instrumental variables for program awareness and coarsened exact matching. We find that rebound effects are larger for households with lower incomes and smaller homes. We also show that the rebound effect is not large enough to ``backfire'' and all income and size subsamples exhibit net energy savings.
    Keywords: rebound effect, heterogeneity, energy efficiency policy
    JEL: D12 H31 L68 Q14
    Date: 2020–11
  19. By: Insaf Guedidi (Ecole Supérieure des Sciences Economiques et Commerciales de Tunis (ESSECT)); Leila Baghdadi (Ecole Supérieure des Sciences Economiques et Commerciales de Tunis (ESSECT))
    Abstract: The paper investigates the relationship between carbon emissions, environmental provisions in Regional Trade Agreements (RTAs) and Global Value Chains (GVCs) using a panel data gravity model for the Middle East and North Africa (MENA) region over the period 1990- 2015. We find that RTAs have a positive effect on carbon emissions. However, good institutional quality in MENA region decreases carbon footprint. Participation of MENA countries in GVCs rises environmental degradation in upstream Low-Tech Manufacturing (LTM) sectors and downstream High-Tech Manufacturing (HTM) and Primary sectors. Moreover, we examine the interaction effects between RTAs with environmental laws and participation of MENA countries in GVCs. Results confirm that participating in upstream activities in GVCs and signing more RTAs with environmental laws reduce pollution in LTM sectors. Furthermore, our study proves that RTAs (with or without environmental laws) could reduce carbon emissions in MENA region participating in backward GVCs. Backward participation is related to trade in LTM and primary sectors. Therefore, there is a need to understand the GVC landscape in MENA region to be able to set suitable RTAs with environmental provisions in order to reduce pollution and contribute to sustainable upgrading in GVCs.
    Date: 2020–11–20
  20. By: Meier, Jan-Niklas; Lehmann, Paul
    Abstract: In federal countries the allocation of renewable energy (RE) deployment is simultaneously regulated by national and subnational governments. We analyze the efficiency of federal coregulation when different types of policy instruments - price and quantity - are assigned to government levels. Using an analytical model with two regulatory levels, we specify conditions that ensure first-best allocation of RE deployment in equilibrium. These efficiency conditions refer to how the financial burden of the national RE support scheme should be shared among subnational jurisdictions. Under realistic assumptions national price-based regulation is efficient if burden shares are proportional to population shares, regardless of the subnational policy instrument. Contrary, under national quantity-based regulation efficiency conditions depend on the subnational policy instrument. While with subnational price-based regulation burden shares should be oriented towards first-best RE deployment shares, with subnational quantity-based regulation burden shares should be oriented towards population shares.
    Keywords: multi-level governance,environmental regulation,renewable energies,tender scheme,feed-in tariff,spatial planning
    JEL: H77 H23 Q48
    Date: 2020
  21. By: World Bank
    Keywords: Energy - Energy Demand Energy - Energy Technology & Transmission Energy - Hydro Power Energy - Power & Energy Conversion Energy - Renewable Energy
    Date: 2020–08
  22. By: Hasan, Syed M.; Zhang, Wendong
    Abstract: Using four rounds of nationwide household survey data from the Pakistan Social and Living Standards Measurement Survey from 2005 to 2014, we provide the first empirical estimates of districts’ carbon emissions and their changes over time based on representative households’ energy consumption. We find that hotspots for carbon emissions in Pakistan tend to cluster around megacities—Islamabad has the highest per capita carbon emissions. This is contradictory to the compact city hypothesis that denser cities are greener, with lower per-capita carbon emissions, than remote cities, and suggest that urbanization in developing countries may not reduce carbon emissions. Our results also show that ignoring household garbage would underestimate the urban carbon footprint by at least 15%. Finally, our results demonstrate the importance of incorporating rural households and their primary energy usage such as firewood, and the fluid nature of carbon emissions and greenness ranking over time in developing countries like Pakistan.
    Date: 2020–05–04
  23. By: Yao Axel Ehouman
    Abstract: This paper re-examines the dependence structure between uncertainty in oil prices and sovereign credit risk of oil exporters. To address this issue, we employ a copula approach that allows us to capture a myriad of complex and nonlinear dependence structures. Empirical analyses involve daily data of the 5-year sovereign credit default swaps spreads and the crude oil implied volatility from January 2010 to May 2019, covering a sample of ten oil-exporting countries. Except for Brazil and Venezuela, our results provide evidence of significant positive and upper tail dependence in the relationship between oil market uncertainty and oil exporters’ sovereign risk. Overall, our findings highlight that high uncertainty in oil prices coincides with large-scale increases in the sovereign credit risk of oil-exporting countries, supporting the hypothesis that investors, exposed to economic losses from risk events in oil exporters, are all the more pessimistic that prevails high uncertainty about future oil prices. Our findings have implications for oil exporter’ policymakers as well as investors.
    Keywords: Copula; Dependence; Oil market; Sovereign credit risk; Uncertainty
    JEL: C1 F3 G1 Q4
    Date: 2020
  24. By: Schleich, Joachim; Durand, Antoine; Brugger, Heike
    Abstract: In most countries, minimum energy performance standards (MEPS) and energy labels are the key policies to accelerate the diffusion of energy-efficient appliances and to help meet energy efficiency and climate policy targets. This paper estimates country-specific multivariate econometric models for eight EU countries over the period of 2007 to 2017 to evaluate the combined effects of changes in the MEPS and the energy labels entering into force in the EU in 2010 and 2011. The findings suggest that these policies increased the market share of cold appliances (refrigerators and fridge-freezer combinations) with an energy label of A+ and better between about 15 and 38 percentage points. For these appliances, autonomous developments (captured through a time trend) are estimated to range between 5 and 10 percentage points per year. Thus, failure to account for autonomous developments would have resulted in substantially overestimating the combined effects of MEPS and energy label policies in the EU. The findings further imply that policy evaluations should allow for policy effectiveness and autonomous developments to differ across countries.
    Keywords: energy efficiency,energy labelling,minimum energy performance standards,policy evaluation
    Date: 2020
  25. By: Energy Sector Management Assistance Program
    Keywords: Energy - Energy Demand Energy - Energy Technology & Transmission Energy - Solar Energy
    Date: 2020–08
  26. By: Andor, Mark Andreas; Bernstein, David H.; Sommer, Stephan
    Abstract: Increasing energy efficiency is a key global policy goal for climate protection. An important step towards an optimal reduction of energy consumption is the identification of energy saving potentials in different sectors and the best strategies for increasing efficiency. This paper analyzes these potentials in the household sector by estimating the degree of inefficiency in the use of electricity and its determinants. Using stochastic frontier analysis and disaggregated household data, we estimate an input requirement function and inefficiency on a sample of 2,000 German households. Our results suggest that the mean inefficiency amounts to around 20%, indicating a notable potential for energy savings. Moreover, we find that the household size and income are among the main determinants of individual inefficiency. This information can be used to increase the cost-efficiency of programs aimed to enhance energy efficiency.
    Keywords: household electricity consumption,stochastic frontier analysis,technical efficiency
    JEL: D1 Q4 Q5
    Date: 2020
  27. By: Alvaro Gonzalez-Castellanos (Skolkovo Institute of Science and Technology); David Pozo (Skolkovo Institute of Science and Technology); Aldo Bischi (Skolkovo Institute of Science and Technology)
    Abstract: There is a growing interest in the integration of energy infrastructures to increase systems' flexibility and reduce operational costs. The most studied case is the synergy between electric and heating networks. Even though integrated heat and power markets can be described by a convex optimization problem, prices derived from dual values do not guarantee cost recovery. In this work, a two-step approach is presented for the calculation of the optimal energy dispatch and prices. The proposed methodology guarantees cost-recovery for each of the energy vectors and revenue-adequacy for the integrated market.
    Date: 2020–11
  28. By: Mehic, Adrian (Department of Economics, Lund University)
    Abstract: What are the political effects of a nuclear accident? Following the 1986 Chernobyl disaster, environmentalist parties were elected to parliaments in several nations. This paper uses Chernobyl as a natural experiment creating variation in radioactive fallout exposure over Sweden. I match municipality-level data on cesium ground contamination with election results for the anti-nuclear Green Party, which was elected to parliament in 1988. After adjusting for pre-Chernobyl views on nuclear power, the results show that voters in high-fallout areas were more likely to vote for the Greens. Additionally, using the exponential decay property of radioactive isotopes, I show a persistent, long-term effect of fallout on the green vote. However, the Chernobyl-related premium in the green vote has decreased substantially since the 1980s. Detailed individual-level survey data further suggests that the results are driven by a gradually decreasing resistance to nuclear energy in fallout-affected municipalities.
    Keywords: Chernobyl; pollution; voting
    JEL: D72 P16 Q48 Q53
    Date: 2020–11–19
  29. By: Armario Benitez, Julia I.; San Juan Mesonada, Carlos
    Abstract: The paper focusses on the impact on dryland ecosystems of conflicting governance in the regulations of land use, water for irrigation and electric energy from photovoltaic installations(PV). The research uses the empirical results of a panel data model based on long time series that enable sensitivity of the main crops to energy cost and the viability of the solar panel system connected to the grid to be identified. We present evidence of the private and social benefits of investments in PV to improve the gross margin of farmers and decrease the carbon footprint of the irrigated areas. Relevant regional disparities in the sensitivity of the main crops explain the regional competition for low-cost water resources and the social conflicts associated with water governance. The Feed-In Tariff system for a PV system is evaluated as a tool to reach clean energy targets and preserve the populations working and living in irrigated drylands. An evaluation of the water desalination plants based on PV is analysed as an alternative to balance the hydric resources of intensive irrigated systems. The main conclusion is that coordinated regulation in energy and water policies may improve farmers' profitability and accelerate the speed in reaching environmental targets in drylands.
    Keywords: Regional Gross Margin; Adaptation to Climate Change; Profitability of Irrigated Crops; Fit Tariffs; Photovoltaic Systems; Irrigation
    Date: 2020–11–23
  30. By: Rolando Fuentes (King Abdullah Petroleum Studies and Research Center)
    Abstract: In this paper we discuss the unexplored two-way relationship between distribution network tariff design and the emergence of new business models in the power sector. Distribution network tariffs have traditionally used a cost accounting method. We suggest, instead, the use of a business model framework to analyze the extent to which emerging business models in the power sector change the way electricity distribution network services are priced and packaged.
    Keywords: Decentralization, Power sector, Network Tariffs, Electricity sector
    Date: 2020–11–25
  31. By: Fabian Scheller; Robert Burkhardt; Robert Schwarzeit; Russell McKenna; Thomas Bruckner
    Abstract: Community electricity storage systems for multiple applications promise benefits over household electricity storage systems. More economical flexibility options such as demand response and sector coupling might reduce the market size for storage facilities. This paper assesses the economic performance of community electricity storage systems by taking competitive flexibility options into account. For this purpose, an actor-related, scenario-based optimization framework is applied. The results are in line with the literature and show that community storage systems are economically more efficient than household storage systems. Relative storage capacity reductions of community storage systems over household storage systems are possible, as the demand and generation profiles are balanced out among end users. On average, storage capacity reductions of 9% per household are possible in the base case, resulting in lower specific investments. The simultaneous application of demand-side flexibility options such as sector coupling and demand response enable a further capacity reduction of the community storage size by up to 23%. At the same time, the competition between flexibility options leads to smaller benefits regarding the community storage flexibility potential, which reduces the market viability for these applications. In the worst case, the cannibalization effects reach up to 38% between the flexibility measures. The losses of the flexibility benefits outweigh the savings of the capacity reduction whereby sector coupling constitutes a far greater influencing factor than demand response. Overall, in consideration of the stated cost trends, the economies of scale, and the reduction possibilities, a profitable community storage model might be reached between 2025 and 2035. Future work should focus on the analysis of policy frameworks.
    Date: 2020–11
  32. By: Tristan Smith (University College London)
    Abstract: The shipping sector will need to reduce its greenhouse gas emissions significantly over the coming decades in order to align them with the Paris Climate goals. How could this be achieved? What will it cost to bring down the sector’s emissions? Will these costs shift maritime trade flows? This paper offers answers to these questions and identifies areas for further investigation.
    Date: 2020–10–29
  33. By: Erkal Ersoy (Centre for Energy Economics Research and Policy, Heriot-Watt University)
    Abstract: This paper empirically analyses the relationship between oil prices and real economic activity in the US. We seek to contribute to the literature by reconsidering the measurement of oil prices. We do so by accounting for whether oil price shocks follow periods of quiescence or volatility, since the former oil price changes could be more shocking. This study also accounts for asymmetry of shocks, since both theory and our empirical findings indicate that positive shocks to oil prices have a greater impact on economic activity than negative ones. We implement a rolling window approach in VARs and IRFs to investigate the time-varying nature of the relationship. Based on these, we find no clear evidence of the oil price-macroeconomy relationship weakening over time. There is strong evidence for asymmetry across specifications, proxies, and sample periods. Impulse response analysis suggests that a rise in oil prices is expected to lead to a decline in output growth rate and that this effect is larger in the second half of the dataset.
    Keywords: Oil prices, economic activity, time-series econometrics, VAR, IRF
    JEL: C32 E32 Q41 Q43
    Date: 2020–11
  34. By: Miguel St.Aubyn
    Abstract: The relationship between electricity consumption and economic activity has been widely studied. It comes then as no surprise that the need to obtain a fast estimate for the GDP drop following the perceived devastating economic effects resulting from the Covid-19 pandemic would lead forecasting practitioners into exploiting this relationship. This drive is further explained, at least in the case of Portugal, by the fact that electricity consumption daily data are published almost in real-time as compared to delays in other potentially informative variables. As usual, there is a trade-off between speed and estimate accuracy. Any result of this kind is not a suitable replacement for better and more complete information, and, in due time, complete and accurate measurements will be available. In the meantime, less precise but already available instruments provide us with some guidance and insight.
    Keywords: forecast, economic activity, electricity consumption, Portugal
    JEL: E17 E23 C32 Q43
    Date: 2020–05
  35. By: Philipp Galkin; Carlo Andrea Bollino (King Abdullah Petroleum Studies and Research Center)
    Abstract: Despite the increasing attention paid to energy security and the continuously broadening scope of the field, the perspective of energy importing countries (i.e., supply security) has overshadowed that of exporters, who seek to ensure demand security. As official statements and policy documents illustrate, major energy exporters and relevant international organizations realize the significance of energy demand security for their economies and global markets.
    Keywords: Diversification, Energy security, Gulf Cooperation Council, Oil exports
    Date: 2020–11–25
  36. By: Burghard, Uta; Scherrer, Aline; Dütschke, Elisabeth; Globisch, Joachim
    Abstract: Plug In Electric Vehicles (PEVs) can contribute to the decarbonisation of the transport sector and to alleviate some of the negative local impacts of car driving. As current market shares for PEVs in Germany are still small, it is important to investigate the social acceptance of electric mobility, taking into account different actors in the innovation system. Therefore we draw a link between the social acceptance concept (socio-political, market and local acceptance) and the technological innovation systems (TIS) approach and conduct a literature review. The results show that the majority of studies deal with the demand side of electric mobility, focusing on market acceptance. For a transition towards an electric transport system a deeper systemic understanding of all actors is necessary. The paper shows where the potentials for further acceptance research on electric mobility lie and provides an approach, which can be developed further and transferred to similar technologies.
    Keywords: electric vehicles,social acceptance,technological innovation system,actors
    Date: 2020
  37. By: Nguyen Quy Nghi; Martin H. Lenihan; Claude Saint-Pierre; Nguyen Thi Minh Phuong; Phan Huyen Dan
    Keywords: Communities and Human Settlements - Human Migrations & Resettlements Energy - Energy Policies & Economics Energy - Hydro Power Rural Development - Rural and Renewable Energy Water Resources - Dams and Reservoirs Social Development - Participations and Civic Engagement Social Development - Social Analysis
    Date: 2020–09
  38. By: Anthony PARIS; Pascal GASTINEAU; Pierre-Alexandre MAHIEU; Benoît CHEZE
    Keywords: , biofuels, discrete choice experiment, social acceptance, willingness to pay
    Date: 2020
  39. By: Riza Demirer (Department of Economics and Finance, Southern Illinois University Edwardsville, Edwardsville, IL 62026- 1102, USA); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Jacobus Nel (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 extend the literature on the effect of rare disaster risks on commodities by examining the effect of the El Nino- Southern Oscillation (ENSO) on crude oil via the recently developed k-th order nonparametric causality-in-quantiles framework, utilizing a long range historical data set spanning the period 1876:01 to 2020:10. The methodology allows us to test for the predictive role of ENSO over the entire conditional distribution of not only real oil returns but also its volatility, by controlling for misspecification due to uncaptured nonlinearity and regime-changes. Empirical findings show that the Southern Oscillation Index (SOI), measuring the ENSO cycle, not only predicts real oil returns, but also volatility, over the entirety of the respective conditional distributions. The findings highlight the role of rare disaster risks over not only financial markets, but also commodities with significant implications for policymakers and investors.
    Keywords: El Nino-Southern Oscillation, Real Oil Returns and Volatility, Higher-Order Nonparametric Causality in Quantiles Test
    JEL: C22 Q41 Q55
    Date: 2020–11
  40. By: Samuel Fargher; Stephane Hallegatte
    Keywords: Energy - Energy and Environment Environment - Climate Change and Environment Environment - Environmental Economics & Policies Health, Nutrition and Population - Disease Control & Prevention Social Protections and Labor - Employment and Unemployment Social Protections and Labor - Labor Markets Urban Development - Urban Governance and Management
    Date: 2020–08
  41. By: Shteryo Nozharov; Nina Nikolova
    Abstract: The main purpose of the current publication is to formulate a scenario model for analysis of the opportunities for low-carbon economy establishment in the countries with transition economies.The model studies risk factors such as shadow economy level and populism based on the implementation and development of Balkan countries economic policy and at the same time shows future climate changes tendencies and uncertainties of climate models.A transdisciplinary approach is implemented in the study. Climate change perception and understanding about low-carbon economy are examined through the public opinion and analysis of mass-media publications.The results of the research are important in order to clarify the multicultural divergences as a factor for risk and uncertainty in the implementation process of the policy for climate change.In this way geographical aspects of risk and uncertainty, which are not only related to the economic development of the relevant countries, could be brought out.
    Date: 2020–11
  42. By: Khuc, Quy Van; Nong, Duy; Phu, Tri Vu
    Abstract: To be considered one of the most dynamic cities in the world, Hanoi, the capital of Vietnam, has been facing an increasingly extreme environmental pollution. For example, in 2019, Hanoi ranked the world’s seventh most polluted capital city, which has raised serious concerns about the detrimental impacts on living environment and health of urban citizens. This study aims to examine how well urban citizens perceive, how well they take action to mitigate it, and how ready they are to contribute to reducing air pollution. A stratified sampling technique coupled with a contingent valuation and a face-to-face interview method was employed to survey 475 inhabitants who live in Hanoi, the capital of Vietnam. The results show that over two-thirds of the inhabitants surveyed are willing to pay for air environment funds and the mean value of WTP is from approximately 122.9 to 123.5 thousand VND per household per month. WTP is associated with a set of endogenous and exogenous factors including age group, level of current air pollution, income, and awareness towards environmental protection solutions. Our results reveal that urban citizens well learn about air pollution and they have a real and strong demand for reducing air pollution, which could help design a desirable policy and or solutions for improving air quality.
    Date: 2020–11–14
  43. By: Frondel, Manuel; Thomas, Tobias
    Abstract: Angesichts der wachsenden klimapolitischen Herausforderungen streben mittlerweile viele Länder Europas bis zum Jahr 2050 eine Dekarbonisierung an, das heißt den Ausstieg aus der Nutzung fossiler Energieträger. Vor diesem Hintergrund präsentiert dieser Beitrag Prognosen des Energiebedarfs und der Energiemixe für Deutschland, Österreich und die Schweiz für das Jahr 2030 sowie einen Ausblick auf das Jahr 2050. Der Vergleich der bisherigen Energiepolitiken dieser Länder offenbart gravierende Unterschiede: Während Deutschland bislang vorwiegend auf die massive Subventionierung alternativer Stromerzeugungstechnologien gesetzt hat, war der bisherige Ansatz Österreichs eher, Energieverbrauch und Treibhausgasausstoß mit ordnungsrechtlichen Maßnahmen, insbesondere Ge- und Verboten, aber auch Subventionen, senken zu wollen. Im Gegensatz dazu setzt die Schweiz bereits seit dem Jahr 2008 auf das marktwirtschaftliche Instrument der CO2-Abgabe. Die hier präsentierten Prognosen des Energiebedarfs der drei Länder deuten darauf hin, dass vor allem Deutschland und Österreich mit einer Fortführung der bisherigen Politik das langfristige Ziel einer weitgehenden Dekarbonisierung nicht erreichen dürften, während es in der Schweiz bereits zu einem spürbaren Rückgang des Primärenergieverbrauchs gekommen ist. Vor diesem Hintergrund gewinnt die jüngst in Deutschland beschlossene CO2--Bepreisung der Emissionen in den Bereichen Verkehr und Wärme besondere Bedeutung. Auch die neue österreichische Bundesregierung möchte in diesen Sektoren eine CO2-Bepreisung einsetzen. Es bleibt allerdings abzuwarten, wie konsequent das marktwirtschaftliche Instrument der CO2-Bepreisung tatsächlich verfolgt wird.
    Keywords: CO2-Bepreisung,Strommix,Primärenergiemix
    JEL: Q21 Q31 Q47
    Date: 2020
  44. By: Bendob Ali (University Center of AinTemouchent); Naima Bentouir (University Center of AinTemouchent)
    Abstract: Oil-exporting countries suffer from the volatility of oil prices, especially in the recent period, which makes them vulnerable to risk trying to find a hedging strategy. This paper aims to propose a new method to predict the fiscal breakeven oil price, for oil-exporting countries based on an empirical study using the Black-Scholes model in Algeria. To achieve our examination we use the oil prices with daily data during the period of 02/01/2013 to 21/09/2020, the fiscal breakeven oil prices and external breakeven oil prices from 2000 to 2020, which are determined by the International Monetary Fund (IMF); in addition to the fiscal breakeven oil prices of Algeria. The main results of our study highlight that there is a strong correlation between the fiscal breakeven prices based on the Black-Scholes model and the external breakeven price, and weak correlation with the IMF’s fiscal breakeven prices, which means that the Black-Scholes model is outperforming to predict the fiscal oil prices in comparison with the IMF method. The results also indicate that there is a negative correlation between the B-S and the reference prices indicated in Algeria's public budget.
    Date: 2020–11–20
  45. By: Olivier F\'eron; Peter Tankov; Laura Tinsi
    Abstract: We study price formation in intraday electricity markets in the presence of intermittent renewable generation. We consider the setting where a major producer may interact strategically with a large number of small producers. Using stochastic control theory we identify the optimal strategies of agents with market impact and exhibit the Nash equilibrium in closed form in the asymptotic framework of mean field games with a major player. This is a companion paper to [F\'eron, Tankov, and Tinsi, Price formation and optimal trading in intraday electricity markets, arXiv:2009.04786, 2020], where a similar model is developed in the setting of identical agents.
    Date: 2020–11
  46. By: Edouard Mien (CERDI - Centre d'Études et de Recherches sur le Développement International - Clermont Auvergne - UCA - Université Clermont Auvergne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Despite a large number of empirical studies on Dutch disease in developing countries and the evidence that oil revenues tend to appreciate the real exchange rate, there remains little discussion about the definition of real exchange rates. This article intends to fill this gap by using four different proxies of the real exchange rate, differentiating the internal and the external real exchange rates for agricultural and manufacturing sectors. Using Pooled-Mean-Group and Mean-Group estimates on a panel of nine African net oil-exporting countries, results show a clear appreciation of the RER generated by oil revenues except for the internal real exchange rate for manufacturing goods. This could imply that oil revenues more clearly affect agricultural compared to manufacturing competitiveness in these African countries.
    Keywords: Dutch disease,Africa,Equilibrium real exchange rate,Pooled Mean Group Estimator,Oil revenues
    Date: 2020–11
  47. By: Niftiyev, Ibrahim
    Abstract: Inflation is one of the most important economic indicators for a country. Understanding inflation based on the consumer spending patterns allows for better conceptualization of the phenomenon and improved policy responses for the unwanted developments, more precisely, increased price levels in consumer markets. The current working paper develops Consumer Price Index-based inflation indicator via the help of the Laspeyres price index in the case of Azerbaijan to evaluate the post-booming period (which is since 2011). Moreover, the significant results of correlation analysis between the Paasche Price Index and oil prices, oil revenue, and real effective exchange rate (REER) demonstrate initial signals about the urban and rural inflation dynamics and trends in the case of oil-rich Azerbaijan.
    Keywords: Inflation,Macroeconomic Data,Consumer Price Index (CPI),Oil revenue,Laspeyres Index,Paasche Index,Azerbaijan Economy
    JEL: E01 E31 F41 O50
    Date: 2020
  48. By: Amir Lebdioui (London School of Economics and Political Science (LSE))
    Abstract: This paper investigates the political economy of resource revenue management in the context of an extremely high need for economic diversification across several countries in the Middle East and North Africa. This paper find that across the board, resource-rich MENA countries have tended to spend their resource revenues generated by the last commodity boom by fueling domestic consumption, both at the public sector and private level, rather than for investment to increase the productivity of non-resource tradable sectors. This paper further argues that that the standard policy advice on managing resource revenues, which has been dominated by a short-term emphasis on consumption, fiscal stabilization and market equilibrium at the expense of long term structural change, is unsuitable in the context of an urgent need for diversification in MENA oil exporters. This paper also highlights important differences in the political economy of resource rents management according to the level of resource rent per capita: ‘Medium resource rich countries’, such as Algeria, Iran or Iraq, cannot afford to achieve growth and employment by pursuing the resource revenue management model currently followed by countries such as Kuwait, Qatar, Saudi Arabia and the UAE, which is more based on financial diversification, rents distribution through public sector employment and consumption subsidies, rather than the transformation of the domestic productive structure. Although all MENA exports need to diversify their economies, the opportunity costs of investments in financial assets overseas rather than real assets domestically varies across countries. This study concludes by outlining a resource revenue management model that is more adapted to the context of the various oil-dependent economies of the MENA region.
    Date: 2020–11–20
  49. By: Hasan, Iftekhar; Noth, Felix; Tonzer, Lena
    Abstract: We investigate whether cultural norms shaped by religion drive consumer decisions after a corporate scandal. We exploit the notice of violation by the US Environmental Protection Agency in September 2015 accusing Volkswagen (VW) of using software to manipulate car emission values during test phases. We show that new registrations of VW cars decline significantly in German counties with a high share of Protestants following the VW scandal. Our findings document that the enforcement culture in Protestantism facilitates penalising corporate fraud. We corroborate this channel with a survey documenting that Protestants respond significantly different to fraud but not to environmental issues.
    Keywords: religion,corporate scandal,consumer choice,climate change
    JEL: D12 O30 Q50 Z12
    Date: 2020
  50. By: Nida Cakir Melek (Federal Reserve Bank of Kansas City); Michael Plante (Federal Reserve Bank of Dallas); Mine Yucel (Federal Reserve Bank of Dallas)
    Abstract: Online appendix for the Review of Economic Dynamics article
    Date: 2020
  51. By: Khalid Siddig (Humboldt University of Berlin); Mohammed Basheer (The University of Manchester); Jonas Luckmann (Humboldt University of Berlin)
    Abstract: The Grand Ethiopian Renaissance Dam (GERD) is expected to increase Ethiopia's electricity generation and affect water users in Egypt and Sudan. We analyze potential economy-wide impacts on Sudan of the steady-state operation of the GERD using a computable general equilibrium model coupled with hydrological, water allocation, and crop models. Results show that the increase in hydropower generation and irrigated agriculture in Sudan due to the flow regulation effect of the GERD would increase Sudan's accumulated GDP by US$ 27-29 billion over 2020-2060. The choice of cropping pattern for Sudan's new irrigation schemes is key to maximizing the county's macro-economic benefits.
    Date: 2020–11–20
  52. By: Khuc, Quy Van; Phu, Tri Vu; Vuong, Quan-Hoang; Le, Tuyet-Anh T.
    Abstract: Science-based desirable solutions for mitigating and or reducing environmental pollution are of important priorities for many developed and developing countries. This article is conducted to better understand how well the inner-city citizens and foreigners perceive air pollution, how well they respond to it, and how much they willingly contribute to improving air quality in Vietnam, a lower-middle-income nation in Southeast Asia. During late 2019, a stratified random sampling technique and a contingent valuation method (CVM) were employed to survey 199 inhabitants and 75 foreigners who reside and travel within the inner-city of Hanoi, respectively. The data comprises four major groups of information, including (1) perception of air pollution and its impacts, (2) preventive measures used to mitigate polluted air, (3) commitments on willingness-to-pay (WTP) for reducing air pollution alongside reasons for the yes-or-no-WTP decision, and (4) demographic information of interviewees. The data could offer many attributes and policy implications for better economics and environmental management in the study area and or in similar places around the world.
    Date: 2020–11–15
  53. By: Rockey, Craig F.
    Keywords: Public Economics
    Date: 2020–10–22

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