nep-ene New Economics Papers
on Energy Economics
Issue of 2021‒01‒04
forty-six papers chosen by
Roger Fouquet
London School of Economics

  1. Mobility choices and climate change: Assessing the effects of social norms, emissions information and economic incentives By Charles Raux; Amandine Chevalier; Emmanuel Bougna; Denis Hilton
  2. Investigating the effects of environmental and energy policies in Turkey using an energy-disaggregated CGE model By Dizem Ertac
  3. Oil prices, exchange rates and interest rates By Kilian, Lutz; Zhou, Xiaoqing
  4. Imperfect Competition, Border Carbon Adjustments, and Stability of a Global Climate Agreement By Soham Baksi; Amrita Ray Chaudhuri
  5. Volatility of International Commodity Prices in Times of Covid-19: Effects of Oil Supply and Global Demand Shocks By Hillary C. Ezeaku; Simplice A. Asongu; Joseph Nnanna
  6. Targeting a sustainable recovery with Green TLTROs By van 't Klooster, Jens; van Tilburg, Rens
  7. Increasing Access to Electricity in the Democratic Republic of Congo By World Bank
  8. Addressing the COVID-19 and climate crises: Potential economic recovery pathways and their implications for climate change mitigation, NDCs and broader socio-economic goals By Simon Buckle; Jane Ellis; Aimée Aguilar Jaber; Marcia Rocha; Brilé Anderson; Petter Bjersér
  9. Bezahlbaren Wohnraum erreichen: Ökonomische Überlegungen zur Wirksamkeit wohnungspolitischer Maßnahmen By Schwarzbauer, Wolfgang; Thomas, Tobias; Koch, Philipp
  10. Do oil-market shocks drive global liquidity? By Yao Axel Ehouman
  11. Whatever it takes to save the planet? Central banks and unconventional green policy By Ferrari, Alessandro; Landi, Valerio Nispi
  12. What do international energy prices have in common after taking into account the key drivers? By Peña Sánchez de Rivera, Daniel; Caro Navarro, Ángela; Camacho, Maximo
  13. Directed technical change and the British Industrial Revolution By David I. Stern; John C. V. Pezzey; Yingying Lu
  14. Firms and households during the pandemic: what do we learn from their electricity consumption? By Olympia Bover; Natalia Fabra; Sandra García-Uribe; Aitor Lacuesta; Roberto Ramos
  15. Is Environmentalism the Right Strategy to Decarbonize the World? By Marini, Marco A.; Tarola, Ornella; Thisse, Jacques-François
  16. Does every Tom, Dick and Harry have a similar fuel price elasticity of car travel demand? Micro-level data reveals substantial heterogeneity By Ivan Tilov; Sylvain Weber
  17. Ghana Country Environmental Analysis By World Bank
  18. Optimal Carbon Pricing in General Equilibrium Revisited: Damages, Depreciation, and Discounting By Rick van der Ploeg; Armon Rezai
  19. The Macroeconomy, Oil and the Stock Market: A Multiple Equation Time Series Analysis of Saudi Arabia By Ruqayya Aljifri
  20. Artificial Intelligence in the Power Sector By Baloko Makala; Tonci Bakovic
  21. Taking Time Seriously: Implications for Optimal Climate Policy By Michael Grubb; Rutger-Jan Lange; Nicolas Cerkez; Pablo Salas; Jean-Francois Mercure; Ida Sognnaes
  22. Carbon Footprints of European Manufacturing Jobs: Stylized Facts and Implications for Climate Policy By U.J. Wagner; D. Kassem; A. Gerster; J. Jaraite-Kazukauske; M. Klemetsen; M. Laukkanen; J. Leisner; R. Martin; J.R. Munch; M. Muûls; A.T. Nielsen; L. de Preux; K.E. Rosendahl; S. Schusser
  23. Decision-making within the household: The role of autonomy and differences in preferences By Alem, Yonas; Hassen, Sied; Köhlin, Gunnar
  24. The De-industrialization Process In Azerbaijan: Dutch Disease Syndrome Revisited By Niftiyev, Ibrahim
  25. EU Sustainable Finance Taxonomy – What Is Its Role on the Road towards Climate Neutrality? By Franziska Schütze; Jan Stede
  26. Residential and Industrial Energy Efficiency Improvement: A Dynamic General Equilibrium Analysis of the Rebound Effect By Kahouli, Sondes; Pautrel, Xavier
  27. New insights on the energy impacts of telework By Hannah Villeneuve; Ahmed Abdeen; Maya Papineau; Sharane Simon; Cynthia Cruickshank; William O’Brien
  28. Oil prices, gasoline prices and inflation expectations: A new model and new facts By Kilian, Lutz; Zhou, Xiaoqing
  29. Air pollution and mobility in the Mexico City Metropolitan Area, what drives the COVID-19 death toll? By Carlos Vladimir Rodríguez-Caballero; J. Eduardo Vera-Valdés
  30. Quantifying the externalities of renewable energy plants using wellbeing data: The case of biogas By Christian Krekel; Julia Rechlitz; Johannes Rode; Alexander Zerrahn
  31. Ethereum gas price statistics By David Carl; Christian Ewerhart
  32. Supporting carbon taxes: The role of fairness By Sommer, Stephan; Mattauch, Linus; Pahle, Michael
  33. A statistical model of the global carbon budget By Mikkel Bennedsen; Eric Hillebrand; Siem Jan Koopman
  34. Regional Note on Air Quality Management in the Western Balkans By World Bank
  35. Testing the Dutch disease: the impact of natural resources extraction on the manufacturing sector By Donny Harrison Pasaribu
  36. Sudden Influxes of Resource Wealth to the Economy By Fabian Mendez Ramos
  37. Environmental Efficiency and Productivity Analysis By Arnaud Abad
  38. The Effect of Climate Policy on Productivity and Cost Pass-Through in the German Manufacturing Sector By Beat Hintermann; Maja Žarković; Corrado Di Maria; Ulrich J. Wagner
  39. Do We Still Need Carbon-Intensive Capital When Transitioning to a Green Economy? By Wei Jin; Rick van der Ploeg; Lin Zhang
  40. Does drawing down the U.S. strategic petroleum reserve help stabilize oil prices? By Kilian, Lutz; Zhou, Xiaoqing
  41. Trajectory Based Distributionally Robust Optimization Applied to the Case of Electricity Facilities Investment with Significant Penetration of Renewables By Pierre Cayet; Arash Farnoosh
  42. Saving Africa's tropical forests through energy transition: A randomized controlled trial in Tanzania By Alem, Yonas; Ruhinduka, Remidius D.
  43. Uganda's nascent oil sector: Revenue generation, investor-stakeholder alignment, and public policy By Steve Kayizzi-Mugerwa
  44. Uganda Oil Revenue Management By World Bank
  45. Saudi Arabia Energy Report By Abeer AlGhamdi
  46. Economic Contribution of the North Dakota Lignite Industry in 2017 By Bangsund, Dean A.; Hodur, Nancy M.

  1. By: Charles Raux (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Amandine Chevalier (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Emmanuel Bougna (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Denis Hilton (UT2J - Université Toulouse - Jean Jaurès)
    Abstract: The potential of psychological and fiscal framing interventions in motivating environmentally responsible behavior is explored in a context of long distance leisure travel. A series of discrete choice experiments is conducted with 789 participants. Framing conditions like information on CO2 emissions, an injunctive and a descriptive norm, fiscal incentives such as a carbon tax, a bonus-malus and a personal carbon trading scheme are tested while controlling the usual travel price-duration tradeoff. Pricing (including internalization of social cost of CO2 through fiscal incentives) has the expected effect of reducing the choice of travelling and hence CO2 emissions. Providing information on CO2 emissions of each transport alternative significantly reduces preferences for the most emitting modes (air) and favors a less emitting mode (train). Framing the fiscal incentive as personal carbon trading adds a moderate incentive to the price effect in reducing air choice.
    Keywords: Transport,CO2 emissions,Discrete choice experiments,Psychological interventions,Bonus-malus,Personal carbon trading,Working Papers du LAET
    Date: 2020–12
  2. By: Dizem Ertac
    Abstract: This thesis investigates environmental and energy policies that Turkey needs to adopt on its way to a sustainable development path. A comparative-static, multi-sectoral CGE model, TurkMod, is developed in order to analyze the potential scenarios available for the Turkish economy to attain a low-carbon society with a reduced reliance on fossil fuel imports. Domestic energy demand has significantly increased in Turkey over the past decades and this has put a lot of pressure on policy-makers as the economy greatly depends on imports of natural gas and oil as far as current energy consumption is concerned. The CGE model in this study is based on a 2012 energy-disaggregated Social Accounting Matrix (SAM) constructed as a part of this thesis as well. The energy-disaggregated SAM incorporates 18 sectors for production activities, 11 products as commodities, 2 factors of production as labor and capital, 3 institutional accounts as firms, households, and the government, a separate account for taxes on commodities, taxes on production and taxes on different types of factor use, a capital account, and finally the rest of the world (ROW) account. Disaggregating the electricity sector to include 8 different types of power generating sectors (5 of which are renewable energy sources) enables electric power substitution in the model. The energy-disaggregated SAM is further linked with satellite accounts which include data on derived energy demand and greenhouse gas (GHG) emissions.The macroeconomic and environmental impacts of four distinct sets of scenarios are analyzed with respect to the baseline scenario. The first scenario simulates a 30% increase in energy efficiency in the production sectors and the residential sector and evidence is found for reaching the 21% GHG mitigation target set in Turkey’s pledge for Paris Agreement compliance. The second set of scenarios is the inclusion of a medium-level and high-level carbon tax rates for coal, oil and natural gas. The carbon tax scenarios produce significant effects on both emission reduction targets and substituting fossil fuel technologies with cleaner energy types. The third scenario investigates the sectoral and welfare impacts of providing subsidies for renewable energy sources. Turkey has already adopted a scheme where renewable energies are beings subsidized and promoted, however, this policy does not produce the necessary transformation for the Turkish society when utilized solely on its own. The fourth scenario estimates the effects of changes in world prices of energy on the Turkish economy. A 20% increase in world energy prices, i.e. oil, natural gas, and coal, induces substantial changes in the breakdown of TPES and the power-generating sector, but this scenario is a rather hypothetical one as it cannot be suggested as a viable policy option. All in all, these potential energy scenarios have significant and influential impacts on the Turkish economy and its environment. Notwithstanding, a carbon tax policy proves to be the most viable scenario which leads to reduced energy intensities in all sectors, a 21% GHG emissions abatement, and a transformation of the energy sector towards having a low-carbon content along with a reduced reliance on fossil fuel imports.
    Keywords: general equilibrium modeling; energy and environmental policies
    Date: 2020–12–14
  3. By: Kilian, Lutz; Zhou, Xiaoqing
    Abstract: There has been much interest in the relationship between the price of crude oil, the value of the U.S. dollar, and the U.S. interest rate since the 1980s. For example, the sustained surge in the real price of oil in the 2000s is often attributed to the declining real value of the U.S. dollar as well as low U.S. real interest rates, along with a surge in global real economic activity. Quantifying these effects one at a time is difficult not only because of the close relationship between the interest rate and the exchange rate, but also because demand and supply shocks in the oil market in turn may affect the real value of the dollar and real interest rates. We propose a novel identification strategy for disentangling the causal effects of traditional oil demand and oil supply shocks from the effects of exogenous variation in the U.S. real interest rate and in the real value of the U.S. dollar. Our approach exploits a combination of sign and zero restrictions and narrative restrictions motivated by economic theory and extraneous evidence. We empirically evaluate popular views about the role of exogenous real exchange rate shocks in driving the real price of oil, and we examine the extent to which shocks in the global oil market drive the U.S. real exchange rate and U.S. real interest rates. Our evidence for the first time provides direct empirical support for theoretical models of the link between these variables.
    Keywords: exchange rate,market rate of interest,oil price,global real activity,commodity
    JEL: E43 F31 F41 Q43
    Date: 2020
  4. By: Soham Baksi; Amrita Ray Chaudhuri
    Abstract: We analyze the stability of a global climate agreement to mitigate greenhouse gas emissions when countries choose pollution taxes simultaneously and strategically. Emissions arise from the production of a good, which is traded across countries with segmented markets that are imperfectly competitive. We find that, while a global climate agreement involving all countries is unstable under autarky, a move from autarky to free trade may stabilize the grand coalition between countries. As markets become more competitive, it becomes more likely that the global climate agreement is stable, and the environmental and welfare gains from global cooperation also become larger. Further, we introduce a border carbon adjustment (BCA) mechanism consisting of an import tariff set equal to the pollution tax differential across countries. We find that allowing countries to use a BCA tends to destabilize an otherwise stable grand coalition.
    JEL: Q54 F18 H23
    Date: 2020–12
  5. By: Hillary C. Ezeaku (Caritas University, Enugu, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria)
    Abstract: This study examines the effects of oil supply and global demand shocks on the volatility of commodity prices in the metal and agricultural commodity markets using the SVAR model. The empirical evidence is based on real time daily closing international commodity prices covering the period 2 December 2019 to 1 October 2020. The findings are presented in cumulative impulse responses and variance decompositions. The former is utilized to examine the accumulated influence of structural shocks on the volatility of agricultural and metal commodities whereas the latter reflect the share of variation in the volatility of each commodity arising from each structural shock. Various patterns are provided on how metal and agricultural commodity prices have been influenced by the COVID-19 pandemic. Policy implications are discussed.
    Keywords: Covid-9; Commodity Prices
    JEL: H12 I12 O10
    Date: 2020–01
  6. By: van 't Klooster, Jens; van Tilburg, Rens
    Abstract: Since their introduction in 2014, the European Central Bank’s Targeted Longer-Term Refinancing Operations (TLTROs) have become ever larger and ever more attractive for banks. As they increasingly drive bank lending, TLTROs often enable unsustainable investments. This report proposes Green TLTROs, which are refinancing operations that provide banks with cheap funding if they lend in accordance with the EU’s taxonomy of green activities. We discuss the legality of such a market-based programme and show that it is compatible with a level playing field between banks and the singleness of monetary policy. We outline several possible technical designs of the Green TLTROs and suggest a pilot programme for energy efficient housing that can quickly be implemented.
    Date: 2020–12–18
  7. By: World Bank
    Keywords: Energy - Electric Power Energy - Energy Demand Energy - Energy Policies & Economics Energy - Energy Sector Regulation Energy - Renewable Energy Rural Development - Rural and Renewable Energy
    Date: 2020–04
  8. By: Simon Buckle (OECD); Jane Ellis (OECD); Aimée Aguilar Jaber (OECD); Marcia Rocha (OECD); Brilé Anderson (OECD); Petter Bjersér
    Abstract: This paper provides decision-makers with a framework for prioritising different economic, social and environmental goals and analysing the options available to achieve them. To this end, it develops three stylised COVID-19 recovery pathways (“Rebound”, “Decoupling” and “Wider well-being”) that differ in the extent to which they encompass greenhouse gas (GHG) emission reductions and the integration of mitigation and wider well-being outcomes or, broadly equivalently, SDGs. A number of real-world examples of COVID-19 recovery measures in the surface transport and residential sectors were identified, and the paper maps these measures onto these three stylised pathways. The paper finds a wide divergence in the environmental and social impacts of COVID-19 recovery measures developed to date, with several countries putting in place measures that correspond to all three pathways. The nature and pace of economic recovery in different countries and in aggregate will have important implications for existing, updated and new Nationally Determined Contributions (NDCs) under the Paris Agreement, and the paper also highlights the possible impact of the COVID-19 recovery measures being put in place on NDCs– including on the ambition of both current and future NDCs. The paper concludes that it will be important for governments to improve their understanding of the impact of their recovery measures across multiple policy dimensions (economic, social, environmental) as well as across different time periods (short and long-term) and spatial scales.
    Keywords: beyond growth, Climate change, inequality, NDCs, net-zero economy, residential, SDGs, sustainable recovery, transport, wider well-being
    JEL: A13 D62 D63 E61 H54 Q01 Q52 Q54
    Date: 2020–12–18
  9. By: Schwarzbauer, Wolfgang; Thomas, Tobias; Koch, Philipp
    Abstract: Gerade in Großstädten wie Wien, Berlin, London oder Paris steigen die Mieten. Das hat vielerorts eine Debatte um bezahlbaren Wohnraum ausgelöst. Dass die Mieten steigen, ist in erster Linie Folge steigender Nachfrage bei einem nicht entsprechend wachsendem Angebot: Eine zunehmende Verstädterung, Zuwanderung und gewandelte Lebensgewohnheiten und -konzepte hin zu Einpersonenhaushalten sind Triebfedern dieser Entwicklung. Verschiedene wohnungspolitische Maßnahmen zielen allerdings nicht auf die Ursachen steigender Mieten und können das Problem der Wohnungsknappheit sogar verschärfen. So führt eine direkte Mietpreisregulierung zu einer höheren Nachfrage nach Wohnungen und zu sinkenden Anreizen für Investitionen und damit geringerem Angebot. Damit wird die Wohnungsknappheit verschärft. Zudem unterliegen bereits heute über 70 Prozent der Mietwohnungen in Österreich einer Mietpreisregulierung. Von einer Reduktion der Mehrwertsteuer profitieren insbesondere Mieterinnen in bestehenden Mietverhältnissen. Bei Neuvermietung werden die Vorteile zu einem Teil von den Vermieterinnen vereinnahmt, so dass die Mieten nicht im Ausmaß der Mehrwertsteuersenkung geringer ausfallen. Hierdurch können die Anreize für Investitionen zwar steigen. Verminderte Vorsteuerabzugsmöglichkeiten lassen diesen Effekt jedoch geringer ausfallen. Hinzu kommen unerwünschte Verteilungswirkungen: Neumieter, z.B. junge Menschen auf der Suche nach der ersten Wohnung oder Familien, die eine größere Wohnung benötigen, profitieren nur in geringerem Maße von der Mehrwertsteuerreduktion. Das grundsätzliche Problem der Wohnungsknappheit und steigenden Mieten wird durch eine Reduktion der Mehrwertsteuer nicht gelöst, da diese nur einmal erfolgt, während längerfristige Treiber steigender Mieten weiter wirken. Der soziale Wohnbau spielt in Österreich eine besondere Rolle. Bereits heute leben rund 20 Prozent aller Österreicherinnen und 45 Prozent der Wienerinnen in einer Gemeinde- oder Genossenschaftswohnung. Hinzu kommt, dass aufgrund mangelnder Bedarfsüberprüfungen bei bestehenden Mietverhältnissen dieses Instrument nur bedingt zielgruppengerecht wirkt Stellt der Anteil der Mieten am verfügbaren Einkommen eine zu starke Belastung dar, können bereits heute besonders belastete Haushalte einen Mietkostenzuschuss erhalten. An dem grundsätzlichen Problem der Wohnungsknappheit im städtischen Raum ändert das freilich nichts. Sollen die Mieten bei wachsender Nachfrage nicht steigen, bedarf es eines entsprechend wachsenden (erreichbaren) Angebots an Wohnraum. Wohnungspolitische Maßnahmen sollten hier ansetzen. Ein bereits bestehendes Instrument zur Förderung des privaten Wohnbaus ist die Wohnbauförderung. Durch eine Entschärfung bestehender Zielkonflikte zwischen Wohnbau- und Energiepolitik könnten weitere positive Effekte auf die Errichtung leistbaren Wohnraums erreicht werden. Zudem bestehen in der aktuellen Ausgestaltung der Wohnbauförderung erhebliche Effizienzpotenziale von österreichweit rund 435 Mio. Euro (EcoAustria 2018). Ein weiterer Lösungsansatz ist die stärkere Integration von Stadt und deren Umland durch eine bessere infrastrukturmäßige Erschließung sowie die (Weiter-)Entwicklung attraktiver Angebote im öffentlichen Verkehr. Dadurch würden Mieterinnen in stark nachgefragten Innenstadtlagen durch eine Dämpfung der Mietpreise ebenso profitieren wie Mieterinnen im Umland von Städten durch die bessere Anbindung.
    Date: 2019
  10. By: Yao Axel Ehouman
    Abstract: This paper aims to assess the impact of oil shocks on global liquidity evolution over the 1999–2018 period, an issue not already addressed by literature. To this end, we rely on a two-stage approach that allows us to trace fluctuations in the crude oil price to the underlying supply and demand shocks, on the one hand, and to estimate the responses of global liquidity indicators to these shocks on the other hand. Our results support the existence of a link between oil shocks and global liquidity. In particular, we show that global liquidity responses to oil shocks depend on the shocks’ nature. While aggregate and oil-specific demand shocks have, respectively, negative and positive effects on the evolution of global liquidity, oil supply shocks do not significantly affect global liquidity due to their relatively low contribution to oil price changes. Thus, this paper highlights that oil price movements by driving global liquidity dynamics can be identified as a potential source of financial instability.
    Keywords: Global liquidity; oil price; oil demand shocks; oil supply shocks; Structural VAR.
    JEL: E51 F00 Q41 Q43
    Date: 2020
  11. By: Ferrari, Alessandro; Landi, Valerio Nispi
    Abstract: We study the effects of a temporary Green QE, defined as a policy that temporarily tilts the central bank’s balance sheet toward green bonds, i.e. bonds issued by firms in non-polluting sectors. To this purpose, we merge a standard DSGE framework with an environmental model. In our model, detrimental emissions produced by the brown sector increase the stock of pollution. We find that the imperfect substitutability between green and brown bonds is a necessary condition for the effectiveness of Green QE. Under the assumption of imperfect substitutability, we point out the following results. A temporary Green QE is an effective tool in mitigating detrimental emissions. However, Green QE has limited effects in reducing the stock of pollution, if pollutants are slow-moving variables such as atmospheric carbon. The welfare gains of Green QE are positive but small. Welfare gains increase if the flow of emissions negatively affects also the utility of households. JEL Classification: E52, E58, Q54
    Keywords: central bank, climate change, monetary policy, quantitative easing
    Date: 2020–12
  12. By: Peña Sánchez de Rivera, Daniel; Caro Navarro, Ángela; Camacho, Maximo
    Abstract: Differences across international energy prices are driven by many factors, but what do energy prices have in common? We analyze global and group-specific co-movements in the energy market by means of a Dynamic Factor Model with Cluster Structure. A new extension of the model is included which allows to evaluate the effect of macroeconomic variables which are country-specific over energy prices. A Monte Carlo experiment is carried out in order to test the estimation performance of the proposed extension. In a Big Data scenario of 30 countries and 12 industrial sectors we find that the co-movements between energy prices are related to groups of countries and may be classified within four groups. The connections within groups may be explained by high prices of a specific fuel type.
    Keywords: Penalized Regression; Clustering; Dynamic Factor Model; Energy Prices
    Date: 2020–12–18
  13. By: David I. Stern; John C. V. Pezzey; Yingying Lu
    Abstract: We build a directed technical change model where one intermediate goods sector uses a fixed quantity of biomass energy (“wood”) and another uses coal at a fixed price, matching stylized facts for the British Industrial Revolution. Unlike previous research, we do not assume the level or growth rate of productivity is inherently higher in the coal-using sector. Analytically, greater initial wood scarcity, initial relative knowledge of coal-using technologies, and/or population growth will boost an industrial revolution, while the converse may prevent one forever. An industrial revolution, with eventual dominance by the coal-using sector, is the model's main dynamic outcome, but not inevitable if inter-good substitutability is high enough. Empirical calibration for 1560-1900 produces historically plausible results for changes in energy-related variables during British industrialization, and through counterfactual simulations confirms that it was the growing relative scarcity of wood caused by population growth that resulted in innovation to develop coal-using machines.
    Keywords: Economic growth, economic history, energy, coal, structural change
    JEL: N13 N73 O33 O41 Q43
    Date: 2020
  14. By: Olympia Bover (Banco de España); Natalia Fabra (Universidad Carlos III de Madrid and CEPR); Sandra García-Uribe (Banco de España); Aitor Lacuesta (Banco de España); Roberto Ramos (Banco de España)
    Abstract: We analyze the impact of the COVID-19 pandemic on electricity consumption patterns in Spain. We highlight the importance of decomposing total electricity consumption into consumption by firms and by households to better understand the economic and social impacts of the crisis. While electricity demand by firms has fallen substantially, the demand by households has gone up. In particular, during the total lockdown, these effects reached -29% and +10% respectively, controlling for temperature and seasonality. While the electricity demand reductions during the second wave were milder, the demand by firms remained 5% below its normal levels. We also document a change in people’s daily routines in response to the stringency of the lockdown measures, as reflected in their hourly electricity consumption patterns.
    Keywords: electricity demand, economic activity, COVID, lockdowns
    JEL: L94 Q43 Q54
    Date: 2020–12
  15. By: Marini, Marco A.; Tarola, Ornella; Thisse, Jacques-François
    Abstract: We study how the supply of environmentalism, which is de ned by psychic bene ts (costs) associated with the purchase of high-environmental (low-environmental) qualities, a¤ects the way rms choose their products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not give rise to a better environmental outcome because it endows rms with more market power which they use to maximize pro ts. By contrast, standard policy instruments such as a minimum quality standard or the use of greener technologies leads to a better ecological footprint.
    Keywords: Environmental Economics and Policy
    Date: 2020–12–22
  16. By: Ivan Tilov; Sylvain Weber
    Abstract: This article uses a rich panel dataset of 1,741 Swiss households in order to examine the effect of fuel prices on household car travel demand. Elasticities are estimated for different segments of households, based on their socio-economic and psychological characteristics, on the features of their vehicles, as well as on their driving intensity. Our results, which draw on inter-individual comparisons, yield larger medium- to long-run price elasticity of demand for mileage than previous estimations using aggregate data for Switzerland, and show that there is important heterogeneity in price sensitivity across segments of households. Lower-income households, households living in urban areas, drivers in retirement age and drivers with more efficient vehicles are significantly more price-reactive compared to their respective counterparts. Quantile regression models show that within segments defined on the basis of income, location, age and motor efficiency there is further evidence for price heterogeneity. These results reveal that in addition to a gasoline tax, non-price measures could be tailored to several household segments in order to provide supplementary incentives to reduce mileage and/or avoid penalizing some specific groups.
    Keywords: car travel demand, fuel prices, elasticities, households' behavior, heterogeneity, panel data, Switzerland.
    JEL: Q40 Q41 D12 R41 C21
    Date: 2020–12
  17. By: World Bank
    Keywords: Environment - Air Quality & Clean Air Environment - Brown Issues and Health Environment - Climate Change Mitigation and Green House Gases Environment - Coastal and Marine Environment Environment - Ecosystems and Natural Habitats Environment - Natural Resources Management Environment - Pollution Management & Control Environment - Sustainable Land Management Environment - Water Resources Management
    Date: 2020–04
  18. By: Rick van der Ploeg; Armon Rezai
    Abstract: The tractable general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for additional negative impacts of global warming on utility and productivity growth, mean reversion in the ratio of climate damages to production, labour-augmenting technical progress, and population growth. We also replace the GHKT assumption of full depreciation of capital each decade by annual logarithmic depreciation. Furthermore, we allow the government to use a lower discount rate than the private sector. We derive a tractable rule for the optimal carbon price for each of these extensions which contain the GHKT model as a special case. Finally, the GHKT model is simplified by modelling temperature as cumulative emissions and calibrated to Burke et al. (2015) damages. We illustrate our analytical rules with a range of optimal policy simulations.
    Keywords: carbon price, tractable rule, general equilibrium, utility and growth damages, technical progress, population growth, logarithmic depreciation, differential discount rules
    JEL: H21 Q51 Q54
    Date: 2020
  19. By: Ruqayya Aljifri (Department of Economics, University of Reading)
    Abstract: This study investigates the existence of long-run relationship/s among the Saudi stock price index (TASI) and domestic macroeconomic variable of money supply (M2), the international variable of S&P 500 and global variable of oil prices, using quarterly data from 1988 quarter 1 to 2018 quarter 1. We also used local and global events dummy variables to control for the impact of local (the 2004 and 2005 TASI bubble that followed by the 2006 crash) and global (the 2008 financial crisis) events, making this paper the first study that takes into account the impact of the local and global financial crisis events when examining the relationship between TASI and macroeconomic variables. We applied the vector error correction model with dummy variables and variance decomposition for long-run analysis. We also applied the Indicator Saturation method to detect outliers and structural breaks. Findings show that there exists a long-run relationship between all of the variables in the system. The equilibrium relation between TASI and S&P 500 and oil prices is positive. However, the relationship between TASI and money supply is negative. Moreover, TASI is substantially driven by innovations in oil prices, and to a lesser extent, by money supply and S&P 500, respectively.
    Keywords: TASI, macroeconomic variables, the TASI bubble and the crash, the global financial crisis, VECM, cointegration test,Indicator Saturation,variance decompositions
    JEL: C22 E44
    Date: 2020–12–28
  20. By: Baloko Makala; Tonci Bakovic
    Keywords: Energy - Electric Power Energy - Energy Demand Energy - Renewable Energy Information and Communication Technologies - ICT Applications Information and Communication Technologies - Information Technology
    Date: 2020–04
  21. By: Michael Grubb (University College London); Rutger-Jan Lange (Erasmus University of Rotterdam); Nicolas Cerkez (University College London); Pablo Salas (University of Cambridge); Jean-Francois Mercure (University of Exeter); Ida Sognnaes (University of Oslo)
    Abstract: Induced innovation and associated issues of path dependence and inertia are of critical importance in the transition to a carbon free economy. We develop a model that, instead of modeling these processes themselves, models the implications of these characteristics and in the process allows us to shed a more nuanced light on this transition phase, an often neglected task. The resulting policy recommendations emphasize the advantages of immediate action and show under what conditions optimal policy might differ from one sector to another. The model thus generates important and policy-relevant insights while seriously considering transition dynamics.
    Keywords: abatement, DICE, energy economics, inertia, innovation, path dependence, transition
    JEL: C61 O30 Q30 Q42 Q43 Q54 Q58
    Date: 2020–12–21
  22. By: U.J. Wagner; D. Kassem; A. Gerster; J. Jaraite-Kazukauske; M. Klemetsen; M. Laukkanen; J. Leisner; R. Martin; J.R. Munch; M. Muûls; A.T. Nielsen; L. de Preux; K.E. Rosendahl; S. Schusser
    Abstract: This paper presents first results from a new European-wide research network for evidence-based climate policy. Using administrative data on industrial firms in Denmark, Finland, France, Germany, Lithuania, Norway, and Sweden, we construct harmonized measures of carbon dioxide emissions per job. We characterize the distribution of this measure and explore how it varies across countries, two-digit industries, and over time. We relate those changes to participation in the EU Emissions Trading System - Europe's flagship climate policy instrument since 2005.
    Keywords: carbon dioxide emissions, manufacturing, climate policy, employment
    JEL: Q54 H23
    Date: 2020–12
  23. By: Alem, Yonas; Hassen, Sied; Köhlin, Gunnar
    Abstract: We use a field experiment to identify how differences in preferences and autonomy in decision-making result in low willingness-to-pay (WTP) for technologies that can benefit all members of the household. We create income earning opportunities to empower households and elicit their WTP for fuel, time and indoor air pollution-reducing improved cookstoves through a real stove purchase experiment. The decision to buy the stove was randomly assigned to either wives, husbands or couples. Experimental results suggest that wives, who often are responsible for cooking and collecting fuelwood, are willing to pay 57% more than husbands, and 39% more than couples. Wives who earned their own income are willing to pay 67% more than husbands who earned their own income, and 45% more than couples. Results also show that women who have higher reported decision-making autonomy are willing to pay substantially more than those with lower decision-making autonomy. A follow up survey conducted 15 months after the stove purchase shows that neither the treatments nor decision-making autonomy have any effect on stove use. Our findings highlight the importance of considering division of labor, preference difference and decisionmaking autonomy within the household when promoting adoption of new household technologies, and that simple income earning opportunities enable poor women to make decisions that are in their best interest.
    Keywords: preference,decision-making autonomy,willingness-to-pay
    JEL: C78 C93 D13 O12 Q56
    Date: 2020
  24. By: Niftiyev, Ibrahim
    Abstract: This paper focuses on the de-industrialization processes of Azerbaijan adopting the Dutch disease syndrome as the theoretical framework. After the emergence of Dutch disease hypotheses, resource-rich countries have become its main object of research. The consequences of Dutch disease syndrome are chronically appreciating national currency, a shrinking manufacturing sector compared to the booming sector, and the services sector. In order to shed light on this aspect of the Azerbaijan economy, important literature examples regarded de-industrialization and Dutch disease were examined and descriptive statistics applied to visualize the economy's recent timeline. This research mainly brings back the actuality of the Dutch disease phenomena to Azerbaijan's economy, connecting it to the deindustrialization process on employment, output, and trade level. The main intention is to depict and to compare policy responses of the national government during and after such crisis periods like 2008-2009 and 2014-2015 in a systematic detailed manner.
    Keywords: Dutch disease,de-industrialization,oil tradable sector,non-oil tradable sector,non-tradable sector
    Date: 2020
  25. By: Franziska Schütze; Jan Stede
    Abstract: The EU Taxonomy is the first standardised and comprehensive classification system for sustainable economic activities. It covers activities responsible for up to 80 percent of EU greenhouse gas emissions and may play an important role in channelling investments into low-carbon technologies by helping investors to make informed decisions. However, especially in transition sectors much depends on the stringency of the technical performance thresholds that the Taxonomy applies to economic activities that are not yet “green”. This paper shows that for several sectors, the thresholds are not yet on track to support the transition towards climate neutrality. To this end, we analyse a large-scale public consultation with detailed responses to the specific thresholds from a variety of stakeholders. Two distinct use cases of the Taxonomy complicate the use of a single threshold for emission-intensive sectors: For new investments, criteria need to be stricter than for current activities of companies. We also argue that for the sectors not covered by the Taxonomy, there is a need to differentiate between low-emissions activities and high-emission activities that are incompatible with a low-carbon future.
    Keywords: EU Taxonomy, sustainable finance, classification system, green investments
    JEL: G00 G14 G18 Q01 Q54 Q56
    Date: 2020
  26. By: Kahouli, Sondes; Pautrel, Xavier
    Abstract: The aim of this paper is to investigate bi-directional spillovers into residential and industrial sectors induced by energy efficiency improvement (EEI) in both the short- and long-term, and the impact of nesting structure as well as the size of elasticities of substitution of production and utility functions on the magnitude and the transitional dynamic of rebound effect. Developing a dynamic general equilibrium model, we demonstrate that residential EEIs spillovers into the industrial sector through the labor supply channel and industrial EEIs spill-overs into the residential sector through the conventional income channel. Numerical simulations calibrated on the U.S. suggest that not taking into account these spillover effects could lead to mis-estimate the rebound effect especially of residential sector EEIs. We also demonstrate how the size and the duration of the rebound effect depend on the value of elasticities of substitution. Especially, the elasticity of substitution between energy and non-energy consumption in household utility and the elasticity of substitution between physical capital and labor in production play a major role. Numerical simulations suggest that alternative sets of value for the elasticities of substitution may give sizable different patterns of rebound effects in both the short- and long-term. In policy terms, our results suggest that energy effciency policies should be implemented simultaneously with rebound effect offsetting policies by considering short- and long-term wide-economy feedbacks. As a consequence, they recall for considering debates about what type of policy pathways is more effective in mitigating the rebound effect.
    Keywords: Resource /Energy Economics and Policy
    Date: 2020–12–17
  27. By: Hannah Villeneuve; Ahmed Abdeen; Maya Papineau (Department of Economics, Carleton University); Sharane Simon; Cynthia Cruickshank (Department of Mechanical & Aerospace Engineering, Carleton University); William O’Brien (Department of Civil and Environmental Engineering, Carleton University)
    Abstract: Quantifying the energy impact of teleworking has been challenging due to the low prevalence of telework. The COVID-19 pandemic and the associated widespread shift to telework provides a new opportunity to study the energy impact of teleworking. Within two months of the lockdowns we surveyed 297 knowledge-based workers who started primarily working from home to investigate their energy-related behaviours and attitudes. The survey’s major themes are energy- saving actions taken in the office, equipment used for telework, impacts on home energy usage, and both awareness of and response to electricity pricing. Given trends towards increased teleworking in the future, these results can inform public policy related to teleworking and energy.
    Keywords: telework, household energy consumption, occupant behaviour, electricity policy, COVID-19
    JEL: Q41 Q48 H31 L94
    Date: 2020–12
  28. By: Kilian, Lutz; Zhou, Xiaoqing
    Abstract: The conventional wisdom that inflation expectations respond to the level of the price of oil (or the price of gasoline) is based on testing the null hypothesis of a zero slope coefficient in a static single-equation regression model fit to aggregate data. Given that the regressor in this model is not stationary, the null distribution of the t-test statistic is nonstandard, invalidating the use of the normal approximation. Once the critical values are adjusted, these regressions provide no support for the conventional wisdom. Using a new structural vector regression model, however, we demonstrate that gasoline price shocks may indeed drive one-year household inflation expectations. The model shows that there have been several such episodes since 1990. In particular, the rise in household inflation expectations between 2009 and 2013 is almost entirely explained by a large increase in gasoline prices. However, on average, gasoline price shocks account for only 39% of the variation in household inflation expectations since 1981.
    Keywords: inflation,expectations,anchor,missing disinflation,oil price,gasoline price,household survey
    JEL: E31 E52 Q43
    Date: 2020
  29. By: Carlos Vladimir Rodríguez-Caballero (Mexico Autonomous Institute of Technology (ITAM) and CREATES); J. Eduardo Vera-Valdés (Aalborg University and CREATES)
    Abstract: This paper analyzes the relation between air pollution exposure and the number of deaths due to COVID-19 in the Mexico City Metropolitan Area. We test if short- and long-term exposure to air pollution is associated with a higher number of deaths due to the pandemic. Our results show that long-term exposure to particle matter of ten micrometers and smaller are associated with a higher death toll due to the pandemic. Nonetheless, in the short-term, the effect of air pollution on the number of deaths is less pronounced. Once we control for the short-term commonality among municipalities, contemporaneous air pollution exposure is no longer significant. Moreover, we show that the extracted unobservable common factor is highly correlated to mobility. Thus, our results show that mobility seems to be the main driver behind the number of deaths in the short-term. These results are particularly revealing given that the Metropolitan Area did not experience a decrease in air pollution during COVID- 19 inspired lockdowns. Thus, this paper highlights the importance of implementing policies to reduce mobility and air pollution to mitigate health risks due to the pandemic. Mobility constraints can reduce the number of deaths due to COVID-19 in the short-term, while pollution policies can reduce health risks in the long-term.
    Keywords: COVID-19, Pollution, Morbidity, Spreading, Mobility
    JEL: Q53 Q28 C21 C23
    Date: 2020–12–16
  30. By: Christian Krekel; Julia Rechlitz; Johannes Rode; Alexander Zerrahn
    Abstract: Although there is strong support for renewable energy plants, they are often met with local resistance. We quantify the externalities of renewable energy plants using well-being data. We focus on the example of biogas, one of the most frequently deployed technologies besides wind and solar. To this end, we combine longitudinal household data with novel panel data on more than 13,000 installations in Germany. Identification rests on a spatial difference-in-differences design exploiting exact geographical coordinates of households, biogas installations and wind direction and intensity. We find limited evidence for negative externalities: impacts are moderate in size and spatially confined to a radius of 2, 000 metres around plants. We discuss implications for research and regional planning, in particular minimum setback distances and potential monetary compensations.
    Keywords: renewables, biogas, externalities, social acceptance, wellbeing, spatial analysis, economic geography
    JEL: C23 Q42 Q51 R20
    Date: 2020–12
  31. By: David Carl; Christian Ewerhart
    Abstract: For users of the Ethereum network, the gas price is a crucial parameter that determines how swiftly the decentralized consensus protocol confirms a transaction. This paper studies the statistics of the Ethereum gas price. We start with some conceptual discussion of the gas price notion in view of the actual transaction-selection strategies used by Ethereum miners. Subsequently, we provide the descriptive statistics of what we call the threshold gas price. Finally, we identify and estimate a seasonal ARIMA (SARIMA) model for predicting the hourly median of the threshold gas price.
    Keywords: Ethereum, gas price, confirmation time, forecasting
    JEL: C57 C22 D85 E37
    Date: 2020–12
  32. By: Sommer, Stephan; Mattauch, Linus; Pahle, Michael
    Abstract: We conduct a discrete choice experiment with a sample of 6,000 German household heads to examine how fairness preferences influence the support for carbon taxes and revenue-recycling options. While it is well-known that carbon taxes are effective in reducing emissions and can be made progressive, they remain fairly unpopular with German citizens. Consequently, best practice to build public support for them remains a relevant question for which there is no consensus. We obtain two major results: First, while green spending is more popular in general, it is significantly more popular among those who are pro-environment and trust the government. Second, when restricted to options for direct revenue redistribution, Germans prefer lump-sum payments over directing payments to the poorest or the most affected. Importantly, choices over these options depend both on genuinely different conceptions of fairness and respondents' economic circumstances. Our findings have implications for building support for effective climate change mitigation policies with those who are not yet convinced.
    Keywords: carbon pricing,climate change mitigation,fairness,redistribution,environmental tax reform
    JEL: A13 H23 Q54
    Date: 2020
  33. By: Mikkel Bennedsen (Aarhus University and CREATES); Eric Hillebrand (Aarhus University and CREATES); Siem Jan Koopman (Vrije Universiteit Amsterdam and CREATES)
    Abstract: We propose a dynamic statistical model of the Global Carbon Budget (GCB) as represented in the annual data set made available by the Global Carbon Project (Friedlingsstein et al., 2019, Earth System Science Data 11, 1783-1838), covering the sample period 1959-2018. The model connects four main objects of interest: atmospheric CO2 concentrations, anthropogenic CO2 emissions, the absorption of CO2 by the terrestrial biosphere (land sink) and by the ocean and marine biosphere (ocean sink). The model captures the global carbon budget equation, which states that emissions not absorbed by either land or ocean sinks must remain in the atmosphere and constitute a flow to the stock of atmospheric concentrations. Emissions depend on global economic activity as measured by World gross domestic product (GDP), and sink activity depends on the level of atmospheric concentrations and the Southern Oscillation Index (SOI). We use the model to determine the time series dynamics of atmospheric concentrations, to assess parameter uncertainty, to compute key variables such as the airborne fraction and sink rate, to forecast the GCB components from forecasts of World-GDP and SOI, and to conduct scenario analysis based on different possible future paths of World-GDP.
    Keywords: Global Carbon Budget, world GDP, CO2 emissions, CO2 concentrations, ENSO, airborne fraction, sink rate, climate system modeling
    JEL: C32 C49 C51 C52 C53
    Date: 2020–12–18
  34. By: World Bank
    Keywords: Environment - Air Quality & Clean Air Environment - Brown Issues and Health Environment - Pollution Management & Control
    Date: 2020–03
  35. By: Donny Harrison Pasaribu
    Abstract: According to the Dutch disease theory, natural resource extractions can have an adverse effect on the manufacturing sector. However, the empirical evidence for the total effect of natural resources extraction on manufacturing has been inconclusive. Other factors such as backward and forward linkages and productivity spillover can also affect the manufacturing sector. This topic is important because many developing countries are still reliant on natural resources extraction while unable to develop their manufacturing sector. This study measures the total impact of natural resource rents on manufacturing value added in a cross-country setting. This is done using an instrumental variable method that utilises fluctuations in world resource prices, weighted by each country’s resource exports. The estimates use data from 149 countries over the period 1970-2014, covering the last two global resource booms (1970s oil boom and 2000s China-driven commodity boom). The study finds that increases in natural resource rent have a mild positive impact on manufacturing value added. The findings are then compared with the experience of resource-dependent Asia-Pacific countries such as Indonesia and Australia.
    Keywords: Dutch disease, natural resources, manufacturing
    JEL: Q32 Q33 O13 O14 O57
    Date: 2020
  36. By: Fabian Mendez Ramos
    Keywords: Energy - Energy and Natural Resources Macroeconomics and Economic Growth - Commodities Macroeconomics and Economic Growth - Economic Development Macroeconomics and Economic Growth - Economic Growth Macroeconomics and Economic Growth - Economic Theory & Research
    Date: 2020–04
  37. By: Arnaud Abad (BETA - Bureau d'Économie Théorique et Appliquée - UL - Université de Lorraine - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: This paper introduces a general framework to analyse green efficiency and environmental productivity. Innovative environmental efficiency measures are introduced to define green productivity indices. Equivalence conditions for the additive and multiplicative green efficiency and productivity measures are displayed. In addition, the core components of environmental productivity change are defined. New implementation process of environmental efficiency and productivity assessment on convex and non convex pollution-generating technologies is proposed.
    Keywords: Data Envelopment Analysis,Environmental Efficiency Indices,Environmental Productivity Indicators,Non Convexity,Pollution-generating Technology
    Date: 2020–11–30
  38. By: Beat Hintermann; Maja Žarković; Corrado Di Maria; Ulrich J. Wagner
    Abstract: We investigate productivity and cost pass-through of German manufacturing firms using administrative data from 2001 to 2014. Our framework allows for the estimation of quantity-based production functions for multi-product firms while controlling for unobserved productivity shocks and unobserved input quality. Using our parameter estimates, we can compute total factor productivity, markups and marginal costs. We find no effect of the EU ETS on firm productivity or profits for the whole sector, and a positive effect for some industries. Firms pass on shocks to materials costs completely, or even more than completely, whereas pass-through of energy costs is around 35-60%. Although pass-through of energy costs is incomplete, it nevertheless allowed firms to recover more than their total carbon costs due to generous free allocation of allowances. Our results add to the recent literature concerning the causal effects of climate policy on firms and are relevant for policy makers when defining the level of free allowance allocation to industry.
    Keywords: productivity, production function, cost pass-through, EU ETS, climate policy
    JEL: D24 H23 Q52 Q54
    Date: 2020–12
  39. By: Wei Jin; Rick van der Ploeg; Lin Zhang
    Abstract: This paper presents a two-sector green endogenous growth model to explore a mechanism that explains why carbon-intensive capital is not necessarily shut down during transition to a green economy. Without accumulating clean capital to offset carbon emissions, a tightening of climate regulation leads to the running down of carbon-intensive capital. However, if climate regulations induce stepping-up of carbon-free capital to offset warming damages, the economic value of carbon-intensive capital can be protected and the running down of carbon-intensive assets can be mitigated. The use of carbon-intensive capital gives the economic means to enhance clean capital accumulation and sustain endogenous growth. Both carbon-intensive and carbon-free capital may thus be needed for an efficient transition to green growth.
    Keywords: endogenous growth, green growth, two-sector growth model, climate policy
    JEL: Q54 Q43 Q32 O13 O44 C61
    Date: 2020
  40. By: Kilian, Lutz; Zhou, Xiaoqing
    Abstract: We study the effects of releases from the U.S. Strategic Petroleum Reserve (SPR) within the context of fully specified models of the global oil market that explicitly allow for storage demand as well as unanticipated changes in the SPR. We show that historically SPR policy interventions, defined as sequences of exogenous SPR shocks during selected periods, have helped stabilize the price of oil. Their effect on the price of oil, however, has been modest. For example, the cumulative effect of the SPR releases after the invasion of Kuwait in 1990 was a reduction of $2/barrel in the real price of oil after 7 months. Whereas emergency drawdowns tend to lower the real price of oil, we find that exchanges tend to raise the real price of oil in the long run. We also provide a detailed analysis of the benefits of the 2018 White House proposal to sell off half of the SPR within the next decade. We show that the expected fiscal benefits of this plan are somewhat higher than the revenue of $16.6 billion dollars projected by the White House.
    Keywords: SPR,crude oil,oil inventories,storage,expectations,policy intervention,fiscal policy
    JEL: Q38 Q43 E62
    Date: 2020
  41. By: Pierre Cayet; Arash Farnoosh
    Abstract: As large scale penetration of renewables into electric systems requires increasing flexibility from dispatchable production units, the electricity mix must be adapted to brutal variations of residual demand. Using tools from distributionally robust optimization (DRO), we propose a trajectory ambiguity set including residual demand trajectories answering both support and variability criterion using quantile information, and approximate the level-maximizing and variability-maximizing residual demand trajectories using two simple algorithms. These two limiting trajectories allow us to make investment decisions robust to extremely high levels and brutal variations of residual demand. We provide a numerical experiment using a MILP investment and unit commitment model in the case of France and discuss the results.
    Keywords: OR in energy; Uncertainty modelling; Decision analysis; Renewables
    JEL: C61
    Date: 2020
  42. By: Alem, Yonas; Ruhinduka, Remidius D.
    Abstract: The production of charcoal to meet cooking needs of urban households is one of the main causes of deforestation and degradation of Africa's tropical forests, which offer significant carbon sequestration capacity to the global economy. In collaboration with a reputable local microfinance institution, we designed a randomised controlled trial in urban Tanzania and offered LPG stoves through subsidy and on credit to measure their impact on charcoal consumption and the corresponding reduction in deforestation. We also investigate the impact of the stoves on cooking time of women, who are the default cooks of the household. We find that, relative to households in the control group, adoption of LPG stoves reduced charcoal consumption by about 30% in the treatment group 15 months after the intervention. This corresponds to an average reduction in deforestation of 0.04 ha/household/year. However, providing subsidies for stove purchases resulted in a larger reduction in charcoal use (38%) than did providing access on credit (27%) with the corresponding likely reduction in deforestation by 0.05 and 0.03 ha/household/year respectively. A social cost-benefit analysis suggests that the cost of both programs is far below the benefits of the averted carbon dioxide CO2 due to possible reduction in deforestation. A carefully conducted controlled cooking test shows that cooking with LP gas is 50% cheaper than cooking with charcoal and it reduces cooking time by about 44% - welfare effects clearly indicating that LPG is cost-effective to the household as well. We highlight the importance of relaxing households' financial constraints and improving access to credit to encourage urban households to switch to cleaner energy sources and save the remaining forest resources of Africa.
    Keywords: charcoal,deforestation,carbon dioxide,LPG stoves,liquidity constraint,credit
    JEL: G21 H31 O10 O13 Q23 Q51
    Date: 2020
  43. By: Steve Kayizzi-Mugerwa
    Abstract: This paper discusses the political economy of oil in Uganda since the announcement of its discovery in 2006. It focuses on the dynamics of oil revenue generation (pre-commercial production) and expenditure, investor-stakeholder contestation (i.e. between bureaucrats, investors/oil companies, and domestic stakeholders), and the role of public policy.
    Keywords: Environment, livelihoods, Oil, Resource revenues, Public policy, environmental degradation, Petroleum revenues
    Date: 2020
  44. By: World Bank
    Keywords: Public Sector Development - Public Investment Mangement Public Sector Development - Public Sector Expenditure Policy Energy - Energy Policies & Economics Energy - Oil & Gas Macroeconomics and Economic Growth - Taxation & Subsidies
    Date: 2020–03
  45. By: Abeer AlGhamdi (King Abdullah Petroleum Studies and Research Center)
    Abstract: Saudi Arabia is one of the world’s leading oil producers and exporters. It has the second-largest proven crude oil reserves after Venezuela. Saudi Arabia’s oil reserves have made it one of the most significant players in the global oil market. The country also possesses vast reserves of natural gas and, in 2018, had the sixth-largest reserves of natural gas, just below the United States.
    Keywords: Power generation, Petroleum, Natural Gas
    Date: 2020–12–15
  46. By: Bangsund, Dean A.; Hodur, Nancy M.
    Keywords: Demand and Price Analysis, Land Economics/Use, Resource /Energy Economics and Policy
    Date: 2019–01–31

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