nep-ene New Economics Papers
on Energy Economics
Issue of 2021‒01‒11
forty-two papers chosen by
Roger Fouquet
London School of Economics

  1. Take a ride on the green side: How do CDM projects affect Indian manufacturing firms’ environmental performance? By Jaraite, Jurate; Kurtyka , Oliwia; Olliver, Hélène
  2. Project Appraisal in the Reformed EU ETS: Looking for Shortcuts By Johansson, Per-Olov
  3. Healthy Climate, Healthy Bodies: Optimal Fuel Taxation and Physical Activity By Inge van den Bijgaart; David Klenert; Linus Mattauch; Simona Sulikova
  4. Colombia; Technical Assistance Report-Reforming Energy Pricing By International Monetary Fund
  5. Instantaneous Hybridization Factor (IHF) Development for HEV Energy-Emissions Analyses Using Real-World, On-Board Data By Holmén, Britt A.; Robinson, Mitchell K.
  6. Electricity Utility Reform in Mali By Franklin Gbedey; Monyl Toga
  7. Quantifying the Externalities of Renewable Energy Plants Using Wellbeing Data: The Case of Biogas By Krekel, Christian; Rechlitz, Julia; Rode, Johannes; Zerrahn, Alexander
  8. Storing Power: Market Structure Matters By Andrés-Cerezo, D., Fabra, N.; Fabra, N.
  9. Pollution permits and financing costs By Fabio Antoniou; Manthos D. Delis; Steven Ongena; Chris Tsoumas
  10. Green Recovery Act, executive summary and explanatory notes By McGaughey, Ewan
  11. Green governments By Niklas Potrafke; Kaspar Wuthrich
  12. Congestion Management—Implications of the European Experience for Japan's Electricity Market Reform (Japanese) By HATTA Tatsuo
  13. Energy and Electricity Consumption of the Information Economy Sector in Finland By Hiekkanen, Kari; Seppälä, Timo; Ylhäinen, Ilkka
  14. Econometric Analysis of Demand for Petrol in India, 1966-2019 By Shaw, Charles
  15. Informe nacional de monitoreo de la eficiencia energética de Panamá, 2020 By -
  16. Attracting Private Participation and Financing in the Power Sector in Sub-Saharan Africa By Benedict Probst; Richard Holcroft; Joern Huenteler; Ani Balabanyan; Andrew Tipping; Peter Robinson
  17. Rural Electrification and Its Impact on Households’ Welfare By Haidari, Ajmal; Institute of Research, Asian
  18. Enabling Institutional Investment in Climate Smart Infrastructure By Michael Grimm; Sandrine Boukerche
  19. Increasing Human Capital by Electrifying Health Centers and Schools through Off-Grid Solar Solutions By Raihan Elahi; Rahul Srinivasan; Tendai Mukurazhizha
  20. A Review of Integrated Urban Planning Tools for Greenhouse Gas Mitigation By Global Platform for Sustainable Cities
  21. Rethinking Power Sector Reform By Tu Chi Nguyen; Anshul Rana; Erik Magnus Fernstrom; Vivien Foster
  22. Essays on the economics, politics and finance of infrastructure By Salvador Bertomeu
  23. Energy Efficiency - Innovations: Driving Prosperity, Slashing Emissions By Susan, Shaheen; Adam, Cohen
  24. Natural resource prices and welfare: Evidence from Indonesia’s coal and palm oil boom By Donny Harrison Pasaribu
  25. Global pathways to sustainable development to 2030 and beyond By Enayat A. Moallemi; Sibel Eker; Lei Gao; Michalis Hadjikakou; Jan Kwakkel; Patrick M. Reed; Michael Obersteiner; Brett A. Bryan
  26. Climate Change in APEC By World Bank
  27. Corporate Social Responsibility and Imperfect Regulatory Oversight: Theory and Evidence from Greenhouse Gas Emissions Disclosures By Jean-Etienne de Bettignies; Hua Fang Liu; David T. Robinson
  28. Energy Expenditure in Egypt: Empirical Evidence Based on A Quantile Regression Approach By Fateh Belaid; Christophe Rault
  29. Lebanon; Selected Issues By International Monetary Fund
  30. Strengthening adaptation-mitigation linkages for a low-carbon, climate-resilient future By OECD
  31. South Sudan Economic Update, February 2020 By World Bank
  32. Computation of Convex Hull Prices in Electricity Markets with Non-Convexities using Dantzig-Wolfe Decomposition By Panagiotis Andrianesis; Michael C. Caramanis; William W. Hogan
  33. Nonlinear Excess Demand Model for Electricity Price Prediction By Mehmet A. Soytas; Hasan M. Ertugrul; Talat Ulussever
  34. International environmental agreements By Richard S.J. Tol
  35. Measuring Energy Poverty in South Africa Based on Household Required Energy Consumption By Yuxiang Ye; Steven F. Koch
  36. Projected climate change By Richard S.J. Tol
  37. An authenticated and secure accounting system for international emissions trading By Chenxing Li; Yang Yu; Andrew Chi-Chih Yao; Da Zhang; Xiliang Zhang
  38. Information Entropy, Continuous Improvement, and US Energy Performance: A Novel Stochastic-Entropic Analysis for Ideal Solutions (SEA-IS) By Jorge Antunes; Rangan Gupta; Zinnia Mukherjee; Peter Wanke
  39. International climate policy By Richard S.J. Tol
  40. Cartel formation for international environmental agreements By Richard S.J. Tol
  41. Groundwater Governance and Adoption of Solar-Powered Irrigation Pumps By Ram Bastakoti; Manita Raut; Bhesh Raj Thapa
  42. Die ökonomische Relevanz und Entwicklungsperspektiven von Blockchain: Analysen für den Telekommunikations- und Energiemarkt By Sörries, Bernd; Stronzik, Marcus; Tenbrock, Sebastian; Wernick, Christian; Wissner, Matthias

  1. By: Jaraite, Jurate (CERE - the Center for Environmental and Resource Economics); Kurtyka , Oliwia (Univ. Grenoble Alpes); Olliver, Hélène (Paris School of Economics)
    Abstract: This study examines the causal impacts of the Clean Development Mechanism (CDM) on the environmental performance of Indian manufacturing firms, as measured by their energy use, carbon dioxide (CO2) emissions, and respective intensities. The impacts of CDM projects are estimated by combining statistical matching with the difference-in-differences approach. We found that CDM projects significantly reduced firms' CO2 emission intensity and energy intensity, but had no effect on total CO2 emissions. These results reveal that CDM projects led to an emission-reducing technique effect (decreased CO2 intensity) and to a positive scale effect (increased sales), and that the latter effect muted the impacts of the former. One of the channels of the technique effect rests on participating firms increasingly generating their electricity on site and relying more on renewable energies. Our results suggest that CDM projects improved firms' environmental performance, even though firm-level absolute CO2 emissions did not decline.
    Keywords: additionality; carbon offsets; CDM projects; CO2 emissions; firms environmental performance; India; micro level data
    JEL: D22 Q53 Q54 Q58
    Date: 2021–01–04
  2. By: Johansson, Per-Olov (CERE - the Center for Environmental and Resource Economics)
    Abstract: The European Union’s Emissions Trading System, EU ETS, has been reformed, shifting the system from a fixed-cap system into a system with an endogenous supply of permits. This paper discusses how to handle the scheme in project appraisal. The focus is on a few relatively straightforward empirical approaches that can be used to approximate how the path of the endogenous supply of permits is affected by an exogenous change in emissions. A particularly surprising feature of the reformed scheme is that an exogenous increase in emissions could cause a reduction in total emissions, a kind of Green Paradox. In addition, overlapping national policies as well as the Paris Agreement to combat climate change that entered into force on 4 November 2016 could neutralize any exogenous impact of the project, reintroducing the ‘waterbed’ so that the project is evaluated as if it sorted under a fixed-cap system. The paper proposes a couple of shortcuts that hopefully simplify economic evaluations of projects affecting the supply of permits. For convenient reference, the paper also lays out the mechanics of the reformed system.
    Keywords: Cost–benefit analysis; permits; waterbed puncture; endogenous cap; ETS; climate gases; Paris Agreement
    JEL: H23 H43 Q51 Q54
    Date: 2020–12–23
  3. By: Inge van den Bijgaart; David Klenert; Linus Mattauch; Simona Sulikova
    Abstract: Transport has significant externalities including carbon emissions and air pollution. Public health research has identified additional social gains from active travel, due to health benefits of physical exercise. Per mile, these benefits greatly exceed the external costs from car use. We introduce active travel into an optimal fuel taxation model and analytically characterise the optimal second-best fuel tax. We find that accounting for active travel benefits increases the optimal fuel tax by 49% in the US and 36% in the UK. Fuel taxes should be implemented jointly with other policies aimed at increasing the uptake of active travel.
    Keywords: transport externalities, congestion, active travel, fuel, health behaviour, optimal taxation
    JEL: H23 I12 Q53 Q54 Q58 R41 R48 Z28
    Date: 2020
  4. By: International Monetary Fund
    Abstract: This paper on Colombia focuses on reforming energy pricing. Rising fiscal challenges in Colombia can risk derailing the government from their commitment to meet both its headline deficit target of 2.4 percent in 2019 and its structural deficit target by 2022, under the existing fiscal rule. The government is committed to embark on a reform strategy that aims at safeguarding the fiscal framework. Energy subsidy reform is one element of the government’s strategy to address fiscal pressures. Carefully designed reforms entail a gradual phasing out of subsidies in the case of fuel products and, in the case of electricity, an improvement in the targeting over the medium term. Illustrative simulations presented in this report highlight the fiscal and distributional impacts of different reform options. Simulations show that net fiscal gains could be achieved both for electricity and fuel products, while reducing distortions. The mission identified reform options to reduce energy subsidies while at the same time improve their targeting. The approach differs across sectors.
    Keywords: Energy subsidies;Fuel prices;Inflation;Electricity;Communications in revenue administration;ISCR,CR,retail price,communication campaign,stabilization fund
    Date: 2019–11–18
  5. By: Holmén, Britt A.; Robinson, Mitchell K.
    Abstract: Past research has shown on-road emissions patterns unique to HEVs, indicating the need to account for them in emissions models. The main objective of this work is to outline a framework for development of new HEV emissions models based on current knowledge of CV emissions. The premise is that accurate knowledge of the instantaneous (1 Hz) power split between the HEV combustion and electric propulsion sources can be used to modify existing CV emission models for HEV emission predictions that are currently lacking in regulatory models. The HEV power split metric, instantaneous hybridization factor (IHF), was developed and quantified with on-road data collected from a 2010 Toyota Camry HEV operating on a fixed route in hilly Vermont over all seasons. IHF is the second-by-second ratio of electric system power to total system power and accounts for energy storage in the high voltage battery. IHF ranges from -1 to +1 and varies widely with vehicle speed and VSP. Different road types on the driving route were associated with different proportions of binned IHF activity, which represent the three key HEV operating states defined in this study: electric-drive only (EDO), power recovery and electric-drive assist. A more detailed analysis of IHF relationships to tailpipe emissions and road grade is found in a recently published article (Ref 1). View the NCST Project Webpage
    Keywords: Engineering, Power split, HEV, emissions, PEMS, on-board diagnostics (OBD)
    Date: 2020–11–01
  6. By: Franklin Gbedey; Monyl Toga
    Keywords: Energy - Electric Power Energy - Energy Demand Energy - Energy Policies & Economics Energy - Energy and Environment Energy - Energy and Poverty Alleviation Energy - Renewable Energy Energy - Thermal Energy
    Date: 2020–01
  7. By: Krekel, Christian (London School of Economics); Rechlitz, Julia (DIW Berlin); Rode, Johannes (Darmstadt University of Technology); Zerrahn, Alexander (DIW Berlin)
    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 wellbeing 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
    JEL: C23 Q42 Q51 R20
    Date: 2020–12
  8. By: Andrés-Cerezo, D., Fabra, N.; Fabra, N.
    Abstract: We asses how firms' incentives to operate and invest in energy storage depend on the market structure. For this purpose, we characterize equilibrium market outcomes allowing for market power in storage and/or production, as well as for vertical integration between storage and production. Market power reduces overall efficiency through two channels: it induces an inefficient use of the storage facilities, and it distorts investment incentives. The worst outcome for consumers and total welfare occurs under vertical integration. We illustrate our theoretical results by simulating the Spanish wholesale electricity market for different levels of storage capacity. The results are key to understand how to regulate energy storage, an issue which is critical for the deployment of renewables.
    Keywords: Storage, electricity, market structure, investment, vertical relations
    JEL: L22 L94
    Date: 2020–12–15
  9. By: Fabio Antoniou (Athens University of Economics and Business); Manthos D. Delis (Montpellier Business School); Steven Ongena (University of Zurich - Department of Banking and Finance; Swiss Finance Institute; KU Leuven; Centre for Economic Policy Research (CEPR)); Chris Tsoumas (Hellenic Open University)
    Abstract: Effective environmental policy should consider how the financiers of polluting firms behave. In a theoretical model describing the periods before and after policy implementation, we show that loan spreads for firms participating in cap-and-trade programs are a function of the costs of compliance and the specific features of the permits markets. With higher permits storage and lower permit prices, firm financing costs fall. Our empirical analysis exploits the dichotomy created by phase III of the EU Emission Trading System, designed to increase and pass the cost of Carbon dioxide emissions to the polluters. In contrast with possible program intentions but in line with our theoretical predictions, loan spreads fall by 25% on average starting in 2013. We empirically identify permits storage before program implementation and its associated effect as key drivers of the fall in loan spreads for affected firms, and we show that this dynamic partly undermines the expected reduction in Carbon dioxide emissions.
    Keywords: Pollution permits; Loan spreads; Bond spreads; EU Emission Trading System; Carbon dioxide emissions
    JEL: G21 G12 Q5
    Date: 2020–12
  10. By: McGaughey, Ewan (King's College, London)
    Abstract: The Green Recovery Act is a draft Act of Parliament that will end climate damage, recovery the environment and economy, and ensure a living planet. Focused on UK law reform, it shows how the smallest possible legal changes can have the biggest possible impact, and how greenhouse gas emissions can be brought to an end without any cost, and huge benefits to taxpayers, and businesses. It has nine parts, on a Green Recovery Commission; transport; energy; coal, oil and gas elimination; full employment, income and training guarantee; agriculture, supermarkets and stores; finance and corporate governance; local authority empowerment; and international and trade agreements. The Act's key ideas are to ban all fossil fuels as fast as technologically practicable, and to mainstream this principle across all public and private bodies. The text of the Act is preceded by an executive summary, and fully referenced explanatory notes.
    Date: 2020–06–30
  11. By: Niklas Potrafke; Kaspar Wuthrich
    Abstract: We examine how Green governments influence macroeconomic, education, and environmental outcomes. Our empirical strategy exploits that the Fukushima nuclear disaster in Japan gave rise to an unanticipated change in government in the German state Baden-Wuerttemberg in 2011. The incumbent rightwing government was replaced by a leftwing government led by the Green party. We use the synthetic control method to select control states against which Baden-Wuerttemberg's outcomes can be compared. The results do not suggest that the Green government influenced macroeconomic outcomes. The Green government implemented education policies that caused comprehensive schools to become larger. We find no evidence that the Green government influenced CO2 emissions, particulate matter emissions, or increased energy usage from renewable energies overall. An intriguing result is that the share of wind power usage decreased relative to the estimated counterfactual. Intra-ecological conflicts and realities in public office are likely to have prevented the Green government from implementing drastic policy changes.
    Date: 2020–12
  12. By: HATTA Tatsuo
    Abstract: Japan's utilities originally constructed Japan's core grid based on the locations of the existing nuclear power plants. However, as the operating rate of Japan's nuclear power plants has dropped significantly, and new energy sources have been constructed in previously uncovered areas, power lines have become congested within the service areas of the transmission companies. Congestion management––methods of relieving transmission line congestion in a particular area––has become a policy issue. This paper shows that Japan can achieve efficient congestion management by modifying the European congestion management system, the "redispatch system." Specifically, we offer the following combination of conditions for effective transmission line congestion management in Japan: (1) Adopt a redispatch system. (2) All new generators should be allowed to locate to congestible areas if they are subject to the imbalance settlement 3) If Japan sets the FIP subsidy rates higher than in Europe, modify the European style FIP system, which pays the subsidy to the scheduled output level, to new schemes proposed in the present paper.
    Date: 2020–11
  13. By: Hiekkanen, Kari; Seppälä, Timo; Ylhäinen, Ilkka
    Abstract: Abstract The role of digital technologies is becoming increasingly important in our day-to-day life. Digital technologies have become part of our social life as well as business operations across different industrial and public sectors. Because of digitalization, the internet protocol and data traffic have been on the rise for several years. Several estimates of the growth in energy consumption of data networks and the information economy sector have been presented in recent years. Occasionally consumer behavior has been claimed to be behind of these increases in electricity use. This report analyzes the energy and electricity consumption of the Finnish information economy sector from 2011 until 2018. Additionally, we compare the Finnish electricity use to other European countries with similar data available. Our report shows that the energy efficiency of the technologies used in the information sector has not kept pace with the growth in the volumes of data transferred on fixed and mobile networks.
    Keywords: Information economy sector, ICT sector, IP traffic, Data usage, Energy consumption, Electricity consumption
    JEL: L8 L82 L86 L94
    Date: 2021–01–07
  14. By: Shaw, Charles
    Abstract: This study uses single-equation dynamic models to estimate petrol demand in India. Estimated long-run elasticities are higher than their short-run counterparts, which is in line with expectations based on the existing literature. We find price elasticities of -0.418 (long-run) and -0.189 (short run), which indicates that when price increases by 10%, demand tends to reduce by approximately 4% as consumers adjust their consumption behaviour. Prices appear to be more elastic in India rather than USA where studies estimate petrol elasticities to be in the range of -0.02 to -0.04 in the short term. We further find evidence that long-run elasticities are not as high as estimated elsewhere. We address issues around modelling of habit formation, habit persistence, and unobserved heterogeneity. Results are essential for transportation policymaking, especially in the context of taxation, understanding price stability, estimating the effects of duty increases on demand, and the potential implications for carbon taxes. The results are also important for wider policy considerations such as climate protections goals, reducing local emissions, dependency on fossil fuels, and strategic energy security.
    Keywords: Energy modeling, Econometric modeling
    JEL: Q4 Q43
    Date: 2020–12–17
  15. By: -
    Abstract: El informe presenta una serie de indicadores que muestran la evolución del sector energético y la eficiencia energética en Panamá. Se analizan las tendencias del consumo de energía y de las medidas de eficiencia energética a nivel nacional para los diferentes sectores. Los indicadores propuestos constituyen una herramienta útil para el monitoreo de los programas, el análisis de políticas de eficiencia energética y el desarrollo de futuras políticas, que ayudarán a Panamá a seguir avanzando en la senda de la sostenibilidad.
    Date: 2020–12–28
  16. By: Benedict Probst; Richard Holcroft; Joern Huenteler; Ani Balabanyan; Andrew Tipping; Peter Robinson
    Keywords: Energy - Electric Power Energy - Energy Finance Energy - Energy Markets Energy - Energy Sector Regulation Infrastructure Economics and Finance - Private Participation in Infrastructure Private Sector Development - Business Environment
    Date: 2020–01
  17. By: Haidari, Ajmal; Institute of Research, Asian
    Abstract: Electricity is the key input for urban and rural development which directly effects households’ welfare in micro-level. Least developed countries policy focus on electrifying rural area through off-grid electricity because of high cost in connecting remote areas to national grid. This research estimates the welfare effects of Shorabak small hydropower in Fayzabad city of Badakhshan province, considering the wellbeing of residences in Taliqan city of Takhar provice that obtained from imported electricity from Tajikistan. The dependent variables of education, saving, health, employment, information and environment used as determinant of welfare in linear regression models. Residences of Fayzabad and Taliqan cities constituted the target population, who interviewed through 400 questionnaire using purposive samplings. For the purpose of analysis, regression models run in SPSS version 25. It was found that full access to electricity in Taliqan city positively changed study hours, saving via cheap per kW fee, decreased illness caused by utilizing wood, fuel for cooking and heating purposes. Furthermore, the level of information increased because of access to media particularly TV. A positive notion seen in keeping environment green by removing wood in households as result of using electricity instead. Generally the findings show, by Shorabak hydropower plant inauguration which is 90% completed the same welfare increase will be felt in Fayzabad city as well.
    Date: 2020–12–12
  18. By: Michael Grimm; Sandrine Boukerche
    Keywords: Energy - Renewable Energy Environment - Climate Change Mitigation and Green House Gases Environment - Climate Change and Environment Environment - Environmental Economics & Policies Environment - Green Issues Infrastructure Economics and Finance - Infrastructure Finance Macroeconomics and Economic Growth - Climate Change Economics
    Date: 2020
  19. By: Raihan Elahi; Rahul Srinivasan; Tendai Mukurazhizha
    Keywords: Education - Educational Institutions & Facilities Energy - Electric Power Energy - Solar Energy Health, Nutrition and Population - Health Service Management and Delivery Health, Nutrition and Population - Public Health Promotion
    Date: 2020–01
  20. By: Global Platform for Sustainable Cities
    Keywords: Environment - Climate Change Mitigation and Green House Gases Environment - Environment and Energy Efficiency Urban Development - City Development Strategies Urban Development - National Urban Development Policies & Strategies Urban Development - Urban Economic Development Urban Development - Urban Environment
    Date: 2020–02
  21. By: Tu Chi Nguyen; Anshul Rana; Erik Magnus Fernstrom; Vivien Foster
    Keywords: Energy - Energy Demand Energy - Energy Markets Energy - Energy Policies & Economics Energy - Energy Sector Regulation Energy - Energy and Environment
    Date: 2020–01
  22. By: Salvador Bertomeu
    Abstract: The main idea of this thesis is to study three different issues, economic, political, or financial, related to three different public infrastructure sectors, transport, water and sewerage, and electricity, by using three different methodological approaches. In the first chapter, I make creative use of a non-parametric technique traditionally used to measure the relative efficiency of a set of similar firms, data envelopment analysis, to identify the most likely objective, economic vs. political, behind a specific policy. In the second chapter I empirically investigate the effects of the increasing private financial ownership of the water and sewerage utilities in England and Wales on key outcome variables such as leverage levels and consumer bills. Finally, in the third chapter, I evaluate an equity-aimed policy introduced in the electricity sector in Spain in 2009 by measuring the effect of its introduction on the probability of a household of being energy poor.Chapter One – Unbundling political and economic rationality: a non-parametric approach tested on transport infrastructure in SpainThis paper suggests a simple quantitative method to assess the extent to which public investment decisions are dominated by political or economic motivations. The true motivation can be identified by modeling each policy goal as the focus of the optimization anchoring a data envelopment analysis of the efficiency of the observed implementation. In other words, we rank performance based on how far observed behavior is under each possible goal, and the goal for which the distance is smaller reveals the specific motivation of the investment or any policy decision for that matter. Traditionally, data envelopment analysis is used to measure the relative efficiency of a set of firms having a similar productive structure. In this case, each firm corresponds to a different policy year, the policy being the determinant of the investment made.The approach is tested on Spain’s land transport infrastructure policy since it is argued by many observers to be driven more by political than economic concerns, resulting in a mismatch between capacity investment and traffic demand. History has shown that when the source of financing has been private, the network has been developed in areas with high demand, i.e. the Northern and Mediterranean corridors. When the source has been public, the network has been developed following a radial pattern, converging from a to Madrid. The method clearly shows that public investments in land transport infrastructure have generally been more consistent with a political objective – the centralization of economic power – than with an economic objective – maximizing mobility –.Chapter Two – On the effects of the private financial ownership of regulated utilities: lessons from the UK water sectorThis paper analyzes the quantitative impact of the growing role of non-traditional financial actors in the financing structure and consumer pricing of regulated private utilities. The focus is on the water sector in England and Wales, where the effect of the firms’ corporate financing and ownership strategies on key outcome variables may have been underestimated. The sector was privatized in 1989, year in which the 10 regional monopolies became 10 water and sewerage companies, listed and publicly traded on UK Stock Exchanges. Since then, six of the ten have been de-listed, bought-out by private equity – investment and infrastructure funds. I make use of this variation in ownership to measure the effect on leverage levels and consumer bills.I develop a theoretical framework allowing me to derive two hypotheses: first, the buyout of a company increases its leverage level, and second, the buyout of a company increases the consumer bill through higher leverage levels. The empirical analysis is based on two sequential steps: a staggered difference-in-differences estimation shows that private equity buyouts increase the leverage levels of water utilities. An instrumental variable and two-stage least squares estimation then show that these higher leverage levels increase the average consumer bills of bought-out utilities more than if they had not been bought-out. The estimated impact of the private equity buyouts in the sector in England and Wales on the annual average consumer bill ranges from 13.5 to 32.6 GBP, for a sample average bill of about 427 GBP.Chapter Three – Understanding the effectiveness of the electricity social rate in reducing energy poverty in SpainThis paper analyzes the causal impact of the introduction of a social subsidy, the bono social de electricidad, in Spain's electricity market in 2009. The measure was introduced following the surge in energy poverty, increasing particularly after the financial crisis. Using data from the family budget survey from 2006 to 2017, we evaluate the social policy in its fight against energy poverty.We proceed in two steps. First, we use a difference-in-differences approach to measure such a causal impact and to analyze how the introduction of the measure directly affected eligible households. We find that the introduction of the subsidy has reduced the likelihood of energy poverty for the eligible households. Therefore, the bono social de electricidad has reached its equity objective of increasing affordability of electricity. The second step aims at understanding how specifically the introduction of the subsidy affects consumers. We find that, in reaction to lower effective prices, households do not increase their consumption of electricity, resulting in lower total electricity expenditure. We are therefore able to show that this policy did not induce a change in the consumption behavior and that the increased affordability entirely resulted in a decrease of expenditure in electricity
    Keywords: Economics; Politics; Finance; Regulation; Infrastructure; Econometrics
    Date: 2021–01–21
  23. By: Susan, Shaheen; Adam, Cohen
    Keywords: Social and Behavioral Sciences, Mobility on Demand, MOD
    Date: 2020–01–01
  24. By: Donny Harrison Pasaribu
    Abstract: This study measures the impact of coal and palm oil prices during the 2000s commodity boom in Indonesia on regional poverty, household consumption, employment and wages. The strategy is to exploit the within-country variation in exposure to each commodity, interacted with exogenous changes in global commodity prices. I focus on two of Indonesia’s main export commodities, coal and palm oil. I find that an increase in the price of coal and palm oil both decrease the poverty rate in districts that produce them relative to districts that do not. However, the mechanisms through which they affect poverty are different.
    Keywords: Natural resource booms, welfare, poverty, subnational impacts
    JEL: O13 Q33 Q32 O53
    Date: 2020
  25. By: Enayat A. Moallemi; Sibel Eker; Lei Gao; Michalis Hadjikakou; Jan Kwakkel; Patrick M. Reed; Michael Obersteiner; Brett A. Bryan
    Abstract: Progress to-date towards the ambitious global 2030 agenda for sustainable development has been limited, and upheaval from the COVID-19 pandemic will further exacerbate the already significant challenges to Sustainable Development Goal (SDG) achievement. Here, we undertake a model-based global integrated assessment to characterise alternative pathways towards 36 time-bound, science-driven targets by 2030, 2050, and 2100. We show that it will be unlikely to jointly achieve socioeconomic and environmental targets by 2030, even under the most optimistic pathways and the least ambitious targets. Nonetheless, humanity can still avoid destabilisation of the Earth system and increase socioeconomic prosperity post-2030 via a Green Recovery pathway. A Green Recovery by mid- and end of the century requires reducing global population by 5% and 26%, empowering sustainable economic development by 32% and 52%, increasing education availability by 10% and 40%, reducing the total global fossil energy production by 36% and 80%, reducing agricultural land area by 7% and 10%, and promoting healthy and sustainable lifestyles by lowering consumption of animal-based foods (i.e., meat and dairy) by 39% and 50%, compared to the business-as-usual trajectories for 2050 and 2100, respectively. Our results show that the combination of these changes together towards extended, more ambitious goals by 2050 and 2100 is central to the transformative change needed to ensure that both people and planet prosper in medium- and long-term futures.
    Date: 2020–12
  26. By: World Bank
    Keywords: Environment - Adaptation to Climate Change Environment - Carbon Policy and Trading Environment - Climate Change Impacts Environment - Climate Change Mitigation and Green House Gases Environment - Climate Change and Environment Environment - Environmental Economics & Policies Finance and Financial Sector Development - Finance and Development
    Date: 2020
  27. By: Jean-Etienne de Bettignies; Hua Fang Liu; David T. Robinson
    Abstract: This paper develops and tests a model in which 1) purpose-driven firms emerge as an optimal organizational form even for profit-maximizing entrepreneurs; and 2) CSR arises endogenously as a response to imperfect regulatory oversight. Purpose-driven organizations allow entrepreneurs to create rents for socially responsible (e.g. environmentally concerned) workers by allowing them to reduce the negative externalities (e.g. pollution) that would be generated without them, and to extract these rents through lower wages. Through this rent extraction entrepreneurs internalize the pro-social preferences of their responsible workers, and in turn engage in CSR through self-regulation, provided that regulatory oversight is poor enough - and hence regulation is loose enough - to make self-regulation worthwhile. The key prediction of the model is a negative impact of regulatory oversight on CSR activity. To test this, we exploit the UK's 2012 decision to mandate greenhouse gas emissions disclosure in all public firms. Consistent with our theory, we find that firms in the UK receive lower CSR ratings after increased regulatory oversight compared to firms from the other 15 European countries which did not experience mandatory disclosure requirements. We also perform a number of robustness checks and explore the interaction between oversight, wages and CSR. These empirical findings provide further support for the model.
    JEL: D62 J31 M14 M52 Q58
    Date: 2020–12
  28. By: Fateh Belaid (Lille Catholic University); Christophe Rault (University of Orléans (France))
    Abstract: This paper investigates the key factors affecting household energy expenditure in Egypt. Based upon the latest 2015 Egyptian HIECS Survey, we develop a quantile regression model with an innovative variable selection approach via Adaptive Lasso Regularization technique to untangle the spectrum of household energy expenditure. Unsurprisingly, income, age, household size, housing size, and employment status are salient predictors for energy expenditure. Housing characteristics have a moderate impact, while socio-economic attributes have a much larger one. The largest variations in household energy expenditures in Egypt are mainly due to variations in income, household size, and housing type. Our findings document substantial differences in household energy expenditure, originating from the asymmetric tails of the energy expenditure distribution. This outcome highlights the added value of implementing quantile regression methods. Our empirical results have various interesting policy implications regarding residential energy efficiency and carbon emissions reduction in Egypt
    Date: 2020–12–20
  29. By: International Monetary Fund
    Abstract: This Selected Issues paper studies the inefficiencies related to the electricity sector and assesses the potential impact of the 2019 reform plan. Electricity shortages are the second constraint to competitiveness reported by businesses in Lebanon, based on the Enterprise Survey conducted by the World Bank. Lebanon’s electricity sector performance is worse than other similar countries in the region. Many businesses must rely on costly private generators. Income inequalities are exacerbated by both the geographical disparities in Electricité du Liban’s (EdL) electricity provision and its tariff structure. The most vulnerable households are the small consumers located in regions with little electricity provision from EdL. A new electricity plan was approved by Cabinet on April 9, 2019 and ratified by Parliament on April 17, 2019. Although it is critical that the plan is decisively implemented, it is also important that it is enhanced further to fully restore EdL’s viability. Introducing well-targeted measures, such as cash transfers, would help protect the most vulnerable households from the tariff increase. As planned in the reform package, consumer tariffs should be indexed on the evolution of input prices to guarantee that it will not be negatively impacted by future developments in fuel or gas prices.
    Keywords: Electricity;Tariffs;Personal income;Capital spending;Energy sector;ISCR,CR,Electricité du Liban,tariff structure,deficit,cost
    Date: 2019–10–17
  30. By: OECD
    Abstract: Strengthening linkages between climate change adaptation and mitigation policies can improve the efficiency and effectiveness of actions in support of a low-carbon, climate-resilient economic development. This policy paper provides an overview and a discussion of linkages, shedding light on the synergies that can be achieved as well as the trade-offs that could arise between the two policy agendas, but also across other environmental or social policy objectives. It aims at inspiring reflections of fostering linkages, especially as part of countries’ ongoing discussions on designing green recovery measures in response to the COVID-19 pandemic.This Policy Paper was prepared as a background document for the G20 Climate Stewardship Working Group discussions under the G20 Presidency of the Kingdom of Saudi Arabia.
    Date: 2021–01–08
  31. By: World Bank
    Keywords: Energy - Oil & Gas International Economics and Trade - External Debt Macroeconomics and Economic Growth - Economic Growth Macroeconomics and Economic Growth - Fiscal & Monetary Policy Poverty Reduction - Achieving Shared Growth Poverty Reduction - Inequality
    Date: 2020–02
  32. By: Panagiotis Andrianesis; Michael C. Caramanis; William W. Hogan
    Abstract: The presence of non-convexities in electricity markets has been an active research area for about two decades. The - inevitable under current marginal cost pricing - problem of guaranteeing that no truthful-bidding market participant incurs losses in the day-ahead (DA) market is addressed in current practice through make-whole payments a.k.a. uplift. Alternative pricing rules have been studied to deal with this problem. Among them, Convex Hull (CH) prices associated with minimum uplift have attracted significant attention. Several US Independent System Operators (ISOs) have considered CH prices but resorted to approximations, mainly because determining exact CH prices is computationally challenging, while providing little intuition about the price formation rational. In this paper, we describe CH price estimation problem by relying on Dantzig-Wolfe decomposition and Column Generation. Moreover, the approach provides intuition on the underlying price formation rational. A test bed of stylized examples elucidate an exposition of the intuition in the CH price formation. In addition, a realistic ISO dataset is used to suggest scalability and validate the proof-of-concept.
    Date: 2020–12
  33. By: Mehmet A. Soytas (KFUPM Business School); Hasan M. Ertugrul (European University Institute, Department of Economics, Florence, Italy); Talat Ulussever (Energy Exchange Istanbul (EXIST))
    Abstract: Variety of models and estimation techniques have been proposed for electricity price forecasting in the literature. We contribute by introducing a dynamic forecasting model for hourly electricity prices based on nonlinear excess demand specification. Our modelling framework depends on the neoclassical price adjustment equation that necessitates prices adjust toward equilibrium at a rate that is proportional to the excess demand. We approximate the adjustment as a nonlinear (cubic) function of the excess demand which itself is modeled as a latent factor. We show that nonlinear relation of excess demand and price leads to a more accurate description of price evolution toward equilibrium and with this framework, the equilibrium forecast for the price is given by a nonlinear equation of the excess demand that can be modeled as a function of important variables of supply and demand. This generates an advantage to forecasters in employing all the information on supply and demand functions in price pre-diction, rather than simply modelling the price on an ad-hoc manner. We further develop a maximum likelihood estimator with excess demand defined as a normally distributed random variable conditional on observables. We demonstrate our likelihood estimator by using data from Turkish electricity market. Our modelling framework implies time varying volatility for prices which along with the nonlinear mean function, brings two important features of time series modelling dynamics together in parsimonious model.
    Date: 2020–12–20
  34. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of international cooperation for climate policy
    Keywords: environmental economics, climate change, game theory, undergraduate, postgraduate, video
    JEL: Q54
    Date: 2020–04
  35. By: Yuxiang Ye (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Steven F. Koch (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa)
    Abstract: Energy poverty is a major concern in most of developing countries while its measurement has not been fully addressed due to the complexity of energy basic needs estimation. This study contributes to the literature by measuring energy poverty with focus on household required energy consumption using widely available household budget survey data. We apply the Foster-Greer-Thorbecke (FGT) poverty measures in a developing but somewhat energy advanced context, South Africa. Our energy poverty line is based on household dependent required energy consumption, and we use data from a recent South African Living Conditions Survey. We find that headcount energy poverty is extensive, as is the gap and the severity of energy poverty. Decomposition results suggest that energy poverty rates decrease with income, and lower income groups contribute more to total poverty than higher income groups across all the three poverty indexes. Our results are consistent with those from previous research, which suggests that our measure of required energy may be a reasonable option for understanding energy poverty.
    Keywords: Energy poverty, Required energy consumption, FGT poverty measures
    Date: 2020–12
  36. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of projections of future climate change
    Keywords: climate change, undergraduate, video
    JEL: Q54
    Date: 2021–01
  37. By: Chenxing Li; Yang Yu; Andrew Chi-Chih Yao; Da Zhang; Xiliang Zhang
    Abstract: Expanding multi-country emissions trading system is considered as crucial to fill the existing mitigation gap for the 2\degree C climate target. Trustworthy emissions accounting is the cornerstone of such a system encompassing different jurisdictions. However, traditional emissions measuring, reporting, and verification practices that support data authenticity might not be applicable as detailed data from large utilities and production facilities to be covered in the multi-country emissions trading system are usually highly sensitive and of severe national security concern. In this study, we propose a cryptographic framework for an authenticated and secure emissions accounting system that can resolve this data dilemma. We demonstrate that integrating a sequence of cryptographic protocols can preserve data authenticity and security for a stylized multi-country emissions trading system. We call for more research to promote applications of modern cryptography in future international climate governance to build trust and strengthen collaboration.
    Date: 2020–11
  38. By: Jorge Antunes (COPPEAD Graduate Business School, Federal University of Rio de Janeiro, Rua Paschoal, Lemme, 355, 21949-900 Rio de Janeiro, Brazil); Rangan Gupta (Department of Economics, University of Pretoria, Pretoria, 0002, South Africa); Zinnia Mukherjee (Department of Economics, Simmons University, 300 The Fenway, Boston, MA 02115, USA); Peter Wanke (COPPEAD Graduate Business School, Federal University of Rio de Janeiro, Rua Paschoal, Lemme, 355, 21949-900 Rio de Janeiro, Brazil)
    Abstract: Previous energy performance studies neglected the role of information entropy in feedback processes between input and output slacks. Superior energy performance may be achieved through the capability of learning from how increased outputs could yield reduced inputs and vice-versa. This paper focus on this gap, by presenting an assessment of US states for a 35-year period in lieu of relevant socio-economic and demographic variables. US is the world largest energy producer and consumer, being well-known not only for innovation in efficient energy use but also for managerial feedback mechanisms in the energy field which ensures continuous improvement in generation and consumption. First, a novel SEA-IS (Stochastic-Entropic Analysis for Ideal Solutions) model is developed to assess the potential information gains that may arise from energy slacks minimization given different optimal reduction quantiles in US states. This non-linear stochastic optimization model not only relies on Beta distributed priors to model the odds-ratio of learning feedback but also takes advantages of numerous strengths present in DEA and TOPSIS approaches for performance management. Machine learning methods are also employed to predict information gains in terms of contextual variables. Results indicate that California is the only U.S. state that has indicate strong mutual information feedback and continuous improvements in efficiency. There is ample scope for harnessing the power of information gains in improving energy efficiency, particularly in 37 U.S. states, which indicates scope for a public-private partnership to achieve this goal.
    Keywords: US energy, performance, state-level, stochastic-entropic approach, information gains, slack management, feedback
    Date: 2020–12
  39. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of international climate policy and negotiations
    Keywords: environmental economics, climate change, game theory, undergraduate, postgraduate, video
    JEL: Q54
    Date: 2020–04
  40. By: Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom)
    Abstract: Video discussion of cartel formation for international cooperation on climate policy
    Keywords: environmental economics, climate change, game theory, undergraduate, postgraduate, video
    JEL: Q54
    Date: 2020–04
  41. By: Ram Bastakoti; Manita Raut; Bhesh Raj Thapa
    Keywords: Agriculture - Agricultural Irrigation and Drainage Agriculture - Climate Change and Agriculture Energy - Solar Energy Water Resources - Groundwater Water Resources - Irrigation and Drainage
    Date: 2020–01
  42. By: Sörries, Bernd; Stronzik, Marcus; Tenbrock, Sebastian; Wernick, Christian; Wissner, Matthias
    Abstract: Die Blockchain-Technologie findet heutzutage bereits Eingang in verschiedene Wirtschaftsbereiche. Technisch gehört sie zu den Distributed-Ledger-Technologien, d. h. es wird eine dezentrale Dokumentation von Transaktionen auf mehreren Standorten vorgenommen. Blockchains können in erster Linie dort eingesetzt werden, wo eine verlässliche Nachverfolgung von Daten- und Zahlungsströmen gewährleistet werden soll, Handlungsanweisungen über Smart Contracts ausgeführt und aufgezeichnet werden sollen und viele Akteure beteiligt sind. In diesem Diskussionsbeitrag wird zunächst die grundsätzliche Funktionsweise der Blockchain-Technologie erläutert. Anschließend werden Anwendungsmöglichkeiten im Bereich der Energie- und Telekommunikationswirtschaft aufgezeigt. Im Bereich der Energie zeigt sich, dass vielfältige Anwendungen denkbar sind, die konkrete Umsetzung jedoch noch am Anfang steht. Hier werden verschieden Anwendungsfälle diskutiert: Quartierslösungen, Abrechnung, Netzengpassmanagement und Bilanzkreisbewirtschaftung. Daneben sind weitere Anwendungsfelder denkbar, z. B. im Bereich Elektromobilität, Asset Management, Stromgroßhandel oder Zertifizierung von Energieprodukten. Die Anwendung der Blockchain ist hier als ein dynamischer Prozess zu verstehen, bei dem derzeit noch viele Fragen ungelöst sind und sich die Akteure noch relativ am Anfang befinden. Dies zeigt sich auch dadurch, dass die Blockchain ihren disruptiven Charakter (noch) nicht in der Weise offenbart hat, als dass tatsächlich einzelne Marktrollen bereits obsolet geworden sind. Momentan ist eher zu erkennen, dass sich Marktrollen verändern bzw. neue Aufgaben z. B. für den Netzbetreiber entstehen. Auch im Bereich Telekommunikation zeigen sich verschiedene denkbare Anwendungsbereiche; das Ausmaß der Umsetzung von Blockchain ist aber noch sehr begrenzt. Wenn es aufgrund mangelnder Transparenz und einer hohen Komplexität bestehender Prozesse zu ineffizienten Marktergebnissen kommt, kann Blockchain-Technologie aber theoretisch einen Mehrwert im Telekommunikationssektor bieten. In den Anwendungsfeldern Auslandsroaming und "Internet der Dinge" (Internet of Things, IoT) müssen jedoch noch einheitliche technologische Regeln und Rahmenbedingungen für die Umsetzung entwickelt werden. Sowohl für den Energie- als auch den TK-Sektor ergeben sich weitere, übergreifende Fragestellungen, die es für einen Einsatz der Blockchain zu lösen gilt. Zwei wesentliche sind die Frage nach dem Charakter der Smart Contracts und der Governance im Umfeld einer Blockchain-Lösung sowie die Frage des steigenden Datenvolumens und der Standardisierung unterschiedlicher Blockchains.
    Date: 2019

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