nep-ene New Economics Papers
on Energy Economics
Issue of 2021‒01‒25
thirty-six papers chosen by
Roger Fouquet
London School of Economics

  1. Urban Wind Energy Production in European Cities: New Opportunities By Alina Wilke; Paul J.J. Welfens
  2. Fuel subsidies and Carbon Emission: Evidence from asymmetric modelling By Ibrahim A. Adekunle; Isiaq O. Oseni
  3. The Role of temperature, Precipitation and CO2 emissions on Countries’ Economic Growth and Productivity By Rigas, Nikos; Kounetas, Konstantinos
  4. How Large and Persistent is the Response of Inflation to Changes in Retail Energy Prices? By Chadi Abdallah; Kangni R Kpodar
  5. Two-stage stochastic program optimizing the total cost of ownership of electric vehicles in commercial fleets By Schücking, Maximilian; Jochem, Patrick
  6. Trading on short-term path forecasts of intraday electricity prices By Tomasz Serafin; Grzegorz Marcjasz; Rafal Weron
  7. Efficiency and Equity Impacts of Energy Subsidies By Robert Hahn; Robert Metcalfe
  8. Paying Attention to Technology Innovations By Aidan Coville; Victor Orozco; Arndt Reichert
  9. Development of the controlling speed algorithm of the conveyor belt based on TOU-tariffs By Pihnastyi, Oleh; Khodusov, Valery
  10. "Pay-later" vs. "pay-as-you-go": Experimental evidence on present-biased overconsumption and the importance of timing By Werthschulte, Madeline
  11. Road Transport Energy Consumption and Vehicular Emissions in Lagos, Nigeria By Monica Maduekwe; Uduak Akpan; Salisu Isihak
  12. Road User Charge Administration: Lessons Learned from Fuel Taxes By Jenn, Alan; Fleming, Kelly L.
  13. Photovoltaic Cleaning Frequency Optimization Under Different Degradation Rate Patterns By Micheli, Leonardo; Theristis, Marios; Talavera, Diego L.; Almonacid, Florencia; Stein, Joshua S.; Fernandez, Eduardo F.
  14. Setting the Agenda for Further District Heating Reform in Ukraine By World Bank
  15. Energy Vulnerability in Female-headed Households By World Bank
  16. Optimal switch from a fossil-fueled to an electric vehicle By Paolo Falbo; Giorgio Ferrari; Giorgio Rizzini; Maren Diane Schmeck
  17. Expenditure-elasticity and income-elasticity of GHG emissions: a survey of literature on household carbon footprint By Antonin Pottier
  18. Climate change, strict Pareto improvements in welfare and multilateral financial transfers By Christos Kotsogiannis; Alan Woodland
  19. Does moving home affect residential heating decisions? exploring heating fuel switching in Ireland By Curtis, John; Grilli, Gianluca
  20. I’d Like to Move It! Consumption Rivalry in the EV Public Charging Market: Demand Estimation with Deterministic Choice Set Variation By Soetevent, Adriaan R.
  21. Study of the influence of prices for petroleum products on their consumption in road transport By Gordeev, Dmitriy (Гордеев, Дмитрий); Kosukhina, Ekaterina (Косухина, Екатерина)
  22. Oil and Fiscal Policy Regimes By Hilde Christiane Bjørnland; Roberto Casarin; Marco Lorusso; Francesco Ravazzolo
  23. Oil Price Shocks and Macroeconomic Dynamics in an Oil-Exporting Emerging Economy: A New Keynesian DSGE Approach By Oladunni, Sunday
  24. EU-US climate cooperation: Challenges and opportunities for the implementation of the Paris agreement By Stranadko, Nataliya
  25. Does Economic Growth, International Trade and Urbanization uphold Environmental Sustainability in sub-Saharan Africa? Insights from Quantile and Causality Procedures By Chimere O. Iheonu; Ogochukwu C. Anyanwu; Obinna K. Odo; Solomon Prince Nathaniel
  26. On the Pernicious Effects of Oil Price Uncertainty on U.S. Real Economic Activities By Amélie Charles; Lian Chew; Olivier Darné; Sandy Suardi
  27. Economic Contribution of the North Dakota Lignite Industry in 2019 By Bangsund, Dean A.; Hodur, Nancy M.
  28. Competition on the fast lane: The price structure of homogeneous retail gasoline stations By Korff, Alex
  29. Strategic bidding via the interplay of minimum income condition orders in day-ahead power exchanges By D\'avid Csercsik
  30. Dry Bulk Shipping and the Evolution of Maritime Transport Costs, 1850-2020 By Jacks, David; Stuermer, Martin
  31. What does Paris mean for Africa? An Integrated Assessment analysis of the effects of the Paris Agreement on African economies By de Bruin, Kelly; Ayuba, Victoria
  32. Maizification of the landscape for biogas production? Identifying the likelihood of silage maize for biogas in Brandenburg from 2008-2018 By Vergara, Felipe; Lakes, Tobia Maike
  33. A Review of Resettlement Management Experience in China Hydropower Projects By World Bank
  34. Soziale Normen und der Emissionsausgleich bei Flügen: Evidenz für deutsche Haushalte By Eßer, Jana; Frondel, Manuel; Sommer, Stephan
  35. Impact of perform-achieve-trade policy on the energy intensity of cement and iron and steel industries in India By Kaumudi Misra
  36. Financial development and macroeconomic sustainability: modeling based on a modified environmental Kuznets curve By Adel Ben Youssef; Sabri Boubaker; Anis Omri

  1. By: Alina Wilke (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Paul J.J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW))
    Abstract: Climate policy challenges reinforce the search for additional elements of renewable energy generation. Small-scale wind energy provides new opportunities for decentralized electricity production, while avoiding grid-dependence and transmission losses. This paper presents a potential analysis for urban wind energy production for two European cities. The simulation follows the framework presented by Rezaeiha et al. (2020) and extends it by using the reanalysis wind grid dataset MERRA2 by NASA (GES DISC, 2020). The dataset combines reliable and complete weather observations in a standardized manner on a global scale, mitigating observation gaps of meteorological stations. This allows us to provide a preliminary potential analysis, while avoiding inaccuracies based on long-distance interpolation. The analyzed cities show considerable urban wind energy farming potential. For the city of Lisbon, Portugal, the installation of only four VAWT on 264 buildings between 20 115 m throughout the city provides an annual wind energy production potential (AEPP) of 9,203 MWh, which approximately corresponds to the annual electricity consumption of 7,167 residents. In Hamburg, Germany, the AEPP amounts to 16,927 MWh produced by 2,840 turbines (four turbines on 710 buildings), which approximately corresponds to the annual electricity consumption of 10,932 residents. The AEEP can easily be increased by using more efficient HAWT, whereby technological advancements in recent years have made them applicable even in the urban environment setting. Additionally, small wind turbines could be installed on buildings of a height lower than 20 m, especially when the overall built environment of the city is rather flat, such as in Lisbon.
    Keywords: urban wind farming, MERRA2, wind energy potential, climate policy, regulation
    JEL: Q42 Q48 Q50 R11
    Date: 2020–12
  2. By: Ibrahim A. Adekunle (Olabisi Onabanjo University, Ago-Iwoye, Nigeria); Isiaq O. Oseni (Olabisi Onabanjo University, Ago-Iwoye, Nigeria)
    Abstract: It is expected that fuel subsidy removal should hinder carbon emissions growth through low energy consumption channels amid higher energy prices. However, outliers in this theoretical disposition make empirical proof of the fuel subsidy-carbon intensity apt and primitive. Despite established fuel subsidy abolishment gains for climate and economic welfare, the relevance, magnitude and policy implications remain dimly. This paper employs the non-linear autoregressive distributed lag (NARDL) estimation procedure to gauge the contemporaneous influence of fuel subsidy for carbon intensity in Nigeria. Findings revealed that fuel subsidy removal inversely relates to Nigeria's carbon emission in the short-run and long run. The study recommends complementary policy option that ensures additional financial savings to the government should be invested in public sector growth that can cushion the effect of relative income loss to the citizenry. The Nigerian government should ensure measures are kept in place to discourage over-consumption of alternative energy (for example, coal) that could also threaten the green economy paradox.
    Keywords: Fuel Subsidy, Carbon Emission, Non-linear ARDL, Nigeria
    JEL: C22 E31 N57 Q54
    Date: 2021–01
  3. By: Rigas, Nikos; Kounetas, Konstantinos
    Abstract: The world's climate has already changed measurably in response to accumulated greenhouse gases emissions. These changes, as well as projected future disruptions, such as increase of temperature, have prompted intense research. A significant body of literature on climate change and economic growth signifies a negative relationship between the two. However, considerable uncertainty surrounds the effect of increasing temperatures combined with releases of anthropogenic emissions to the atmosphere. By applying detailed country level data in the 1961-2013 period this paper documents the relationship between weather variables, CO2emissions, share of renewable energy sources, gross domestic product and total factor productivity in a standard Cobb-Douglas production function by using an instrumental variable approach. Our findings suggest that economic growth has been positively affected by temperature and CO2emissions, while climate vulnerability varies significantly between rich-poor countries. Furthermore, as soon as we take into account renewable sources as an instrument, the negative effect on CO2 emissions demonstrates its impact for optimal environmental policies design. Finally, our results also provide evidence for the existence of an inverted U-shaped relationship for temperature and emissions.
    Keywords: Climate Change, Countries' TFP, CO2 emissions, Renewable Energy Sources, Temperature.
    JEL: C26 Q40 Q54
    Date: 2021
  4. By: Chadi Abdallah; Kangni R Kpodar
    Abstract: We estimate the dynamic effects of changes in retail energy prices on inflation using a novel monthly database, covering 110 countries over 2000:M1 to 2016:M6. We find that (i) inflation responds positively to retail energy price shocks, with effects being, on average, modest and transitory. However, our results suggest significant heterogeneity in the response of inflation to these shocks owing to differences in factors related to labor market flexibility, energy intensity, and monetary policy credibility. We also find compelling evidence of asymmetric effects—under sufficiently large shocks—in the case of high-income and low-income countries, with increases in retail fuel prices inducing larger effects on inflation than decreases in fuel prices.
    Keywords: Fuel prices;Inflation;Energy prices;Oil prices;Personal income;WP,price,standard deviation,fuel price shock,spiral effects
    Date: 2020–06–12
  5. By: Schücking, Maximilian; Jochem, Patrick
    Abstract: The possibility of electric vehicles to technically replace internal combustion engine vehicles and to deliver economic benefits mainly depends on the battery and the charging infrastructure as well as on annual mileage (utilizing the lower variable costs of electric vehicles). Current studies on electric vehicles' total cost of ownership often neglect two important factors that influence the investment decision and operational costs: firstly, the trade-off between battery and charging capacity; secondly the uncertainty in energy consumption. This paper proposes a two-stage stochastic program that minimizes the total cost of ownership of a commercial electric vehicle under uncertain energy consumption and available charging times induced by mobility patterns and outside temperature. The optimization program is solved by sample average approximation based on mobility and temperature scenarios. A hidden Markov model is introduced to predict mobility demand scenarios. Three scenario reduction heuristics are applied to reduce computational effort while keeping a high-quality approximation. The proposed framework is tested in a case study of the home nursing service. The results show the large influence of the uncertain mobility patterns on the optimal solution. In the case study, the total cost of ownership can be reduced by up to 3.9% by including the trade-off between battery and charging capacity. The introduction of variable energy prices can lower energy costs by 31.6% but does not influence the investment decision in this case study. Overall, this study provides valuable insights for real applications to determine the techno-economic optimal electric vehicle and charging infrastructure configuration.
    Keywords: Battery electric vehicle,Total cost of ownership,Stochastic programming,Hidden Markov model,Scenario reduction
    Date: 2020
  6. By: Tomasz Serafin; Grzegorz Marcjasz; Rafal Weron
    Abstract: We introduce a profitable trading strategy that can support decision-making in continuous intraday markets for electricity. It utilizes a novel forecasting framework, which generates prediction bands from a pool of path forecasts or approximates them using probabilistic price forecasts. The prediction bands then define a time-dependent price level that, when exceeded, indicates a good trading opportunity. Results for the German intraday market show that, in terms of the energy score, our path forecasts beat a well performing similar-day benchmark by over 25%. Moreover, they provide empirical evidence that the increased computational burden induced by generating realistic price paths is offset by higher trading profits. Still, the proposed approximate method offers a reasonable trade-off - it does not require generating path forecasts and yields only slightly lower profits.
    Keywords: Intraday electricity market; Probabilistic forecast; Path forecast; Prediction bands; Energy score; Trading recommendations
    JEL: C22 C32 C51 C53 Q41 Q47
    Date: 2020–12–30
  7. By: Robert Hahn; Robert Metcalfe
    Abstract: Economic theory suggests that energy subsidies ca lead to excessive consumption and environmental degradation. However, the precise impact of energy subsidies is not well understood. We analyze a large energy subsidy: the California Alternate Rates for Energy (CARE). CARE provides a price reduction for low-income consumers of natural gas and electricity. Using a natural field experiment, we estimate the price elasticity of demand for natural gas to be about -0.35 for CARE customers. An economic model of this subsidy yields three results. First, the natural gas subsidy appears to reduce welfare. Second, the economic impact of various policies, such as cap-and-trade, depends on whether prices for various customers move closer to the marginal social cost. Third, benefits to CARE customers need to increase by 6% to offset the costs of the program.
    Date: 2021
  8. By: Aidan Coville; Victor Orozco; Arndt Reichert
    Keywords: Energy - Electric Power Energy - Renewable Energy Energy - Rural Energy Rural Development - Rural and Renewable Energy
    Date: 2019–05
  9. By: Pihnastyi, Oleh; Khodusov, Valery
    Abstract: The article considers the synthesis of an optimal discrete control algorithm for the conveyor belt speed, based on the use of Time-Of-Use tariffs. Methods have been investigated that reduce the consumption of electricity required to transport material from the extracted place to the place of processing. It is shown that the uneven distribution of material along the transportation route for long multi-section conveyors leads to a significant increase in the share of transportation costs among the total costs of material extraction. The systems for controlling the flow parameters of the transport system are analyzed to ensure uniform distribution of material along the transport route and reduce the cost of transporting material. It has been demonstrated that energy management methodology is an effective tool to reduce the cost of material transportation. Analyzed the common classes of tariffs using electricity by industrial enterprises, which can be successfully used in the design of control systems for flow parameters of the conveyor line. When synthesizing algorithms for regulating the speed of the belt, the model of primary friction and the assumption of the absence of a stress wave in the belt during instantaneous switching of the speed modes were used. An analytical model of the conveyor is presented in a dimensionless form, taking into account the transport delay. The problem of optimal control of the speed of the conveyor belt at fixed energy consumption for the considered control interval is formulated. The ranges of variation of the model parameters are estimated. An algorithm for optimal regulation of the belt speed using the coefficients Ukraine–TOU periods is synthesized. The influence of the initial conditions on the belt speed control modes is analyzed.
    Keywords: Transport conveyor; distributed transport system; energy management; conveyor belt speed control; transport delay; uneven material distribution
    JEL: C02 C15 C25 C44 D24 L23 Q21
    Date: 2020–11–12
  10. By: Werthschulte, Madeline
    Abstract: When consuming goods provided by public utilities, such as telecommunication, water, gas or electricity, the predominant payment scheme is pay-later billing. This paper identifies one potential consequence of pay-later schemes, present-biased overconsumption of the respective good, and tests the effectiveness of pay-as-you-go schemes in reducing consumption. Specifically, I run a lab experiment which mimics an energy consumption choice and randomizes the timing of when consumption costs are paid: Either immediately ('pay-as-you-go') or one-week after consumption ('pay-later'). Results show that pay-as-you-go billing significantly decreases consumption, and in particular wasteful consumption. As the design controls for contaminating effects, these results can be solely attributed to present-biased discounting under the pay-later scheme. These results imply that pay-as-you-go schemes will be welfare improving both from agent's own perspective and from a social perspective if externalities are involved. In contrast, classic price-based polices will need correctives to account for present bias arising under pay-later schemes.
    Keywords: payment schemes,present bias,discounting,lab experiment,energy
    JEL: C91 D15 D91 Q49
    Date: 2020
  11. By: Monica Maduekwe (Praia, Cabo Verde); Uduak Akpan (SPIDER Solutions, Akwa Ibom State, Nigeria); Salisu Isihak (Rural Electrification Agency, Abuja, Nigeria)
    Abstract: The “Avoid†, “Shift†and “Improve†(A-S-I) approach is an effective method for transforming an unsustainable transport system to a sustainable one. This study intends to examine the possible impact of the A-S-I policy measures in transforming the transportation system in Lagos - the most populous city and the commercial capital of Nigeria. The study employs the Long Range Energy Alternative Planning (LEAP) model to project future energy demand and greenhouse gas emissions to determine the most effective A-S-I option for the city. We construct a business-as-usual scenario for Lagos as well as sustainable road transport alternative policy scenarios. The results show that Lagos’ biggest obstacle to achieving its emission reduction target is the presence of very old vehicles on its roads. Our analysis shows that emission reduction in the road transport sector in Lagos is sensitive to vehicle survivability rate (i.e. the fraction of vehicles of a certain age still driven). We conclude that unless the age limit of vehicles in Lagos reduces from 40 years to 22 years, vehicle growth rate from 5% to 2% and mileage by 2% per year from 2020- 2032, Lagos may not achieve the target 50% emission reduction by 2032.
    Keywords: Road transport, energy consumption, greenhouse gas emissions, LEAP, Lagos, Nigeria
    Date: 2020–01
  12. By: Jenn, Alan; Fleming, Kelly L.
    Abstract: State and federal governments rely on fuel taxes to help build and maintain roads, bridges, and other transportation infrastructure. The federal gasoline tax has not been increased since 1993 and inflation, improvements in fuel efficiency, and an increasing share of electric vehicles on the road have created a revenue shortfall from fuel taxes in the Highway Trust Fund. Many states have begun conducting pilot programs for a road user charge, or mileage-based user fee, which would impose a fee per mile for drivers rather than a charge per gallon of fuel. Benefits of this system are that it is not sensitive to changes in drivetrain technology to electric vehicles, can be designed to be less regressive than a gasoline tax, and can be easily adjusted for inflation. However, implementing a new tax would have challenges. This policy brief summarizes findings and policy implications from University of California, Davis research that assessed the administration of the gasoline tax, including collection and distribution of revenues, to determine what barriers and opportunities might exist for a road user charge funding mechanism. View the NCST Project Webpage
    Keywords: Law, Financing, Fuel storage, Fuel taxes, Gasoline, Infrastructure, Mileage-based user fees
    Date: 2021–01–01
  13. By: Micheli, Leonardo; Theristis, Marios; Talavera, Diego L.; Almonacid, Florencia; Stein, Joshua S.; Fernandez, Eduardo F.
    Abstract: Dust accumulation significantly affects the performance of photovoltaic modules and its impact can be mitigated by various cleaning methods. Optimizing the cleaning frequency is therefore essential to minimize the soiling losses and, at the same time, the costs. However, the effectiveness of cleaning lowers with time because of the reduced energy yield due to degradation. Additionally, economic factors such as the escalation in electricity price and inflation can either compound or counterbalance the effect of degradation. The present study analyzes the impact of degradation, escalation in electricity price and inflation on cleaning frequency and proposes a methodology than can be applied to maximize the profits of soiling mitigation in any system worldwide. The energy performance and soiling losses of a 1 MW system installed in southern Spain were analyzed and integrated with theoretical linear and nonlinear degradation rate patterns. The Levelized Cost of Energy and Net Present Value were used as criteria to identify the optimum cleaning strategies. The results showed that the two metrics convey distinct cleaning recommendations, as they are influenced by different factors. For the given site, despite the degradation effects, the optimum cleaning frequency is found to increase with time of operation.
    Keywords: Soiling; Cleaning Frequency; Optimization; Photovoltaics; Degradation Rate; Economics
    JEL: Q4
    Date: 2020–07–21
  14. By: World Bank
    Keywords: Energy - Energy Conservation & Efficiency Energy - Energy Consumption Energy - Energy Demand Energy - Energy Policies & Economics Energy - Energy Sector Regulation
    Date: 2019–05
  15. By: World Bank
    Keywords: Energy - Electric Power Energy - Energy Demand Energy - Energy Policies & Economics Energy - Energy Sector Regulation Gender - Gender and Energy
    Date: 2019–12
  16. By: Paolo Falbo; Giorgio Ferrari; Giorgio Rizzini; Maren Diane Schmeck
    Abstract: In this paper we propose and solve a real options model for the optimal adoption of an electric vehicle. A policymaker promotes the abeyance of fossil-fueled vehicles through an incentive, and the representative fossil-fueled vehicle's owner decides the time at which buying an electric vehicle, while minimizing a certain expected cost. This involves a combination of various types of costs: the stochastic opportunity cost of driving one unit distance with a traditional fossil-fueled vehicle instead of an electric one, the cost associated to traffic bans, and the net purchase cost. After determining the optimal switching time and the minimal cost function for a general diffusive opportunity cost, we specialize to the case of a mean-reverting process. In such a setting, we provide a model calibration on real data from Italy, and we study the dependency of the optimal switching time with respect to the model's parameters. Moreover, we study the effect of traffic bans and incentive on the expected optimal switching time. We observe that incentive and traffic bans on fossil-fueled transport can be used as effective tools in the hand of the policymaker to encourage the adoption of electric vehicles, and hence to reduce air pollution.
    Date: 2020–12
  17. By: Antonin Pottier (CIRED/CMB/EHESS)
    Abstract: The relationship between income, living standards and carbon emissions has been the subject of extensive research. It can be summed up by a number, the elasticity of the carbon footprint with respect to income. This is an output of bottom-up studies that compute carbon footprints from household budget surveys, while top- down studies use it as an input to estimate the distribution of the carbon footprint from the distribution of income. I survey here these cross-sectional studies of household carbon footprints and their estimation of elasticities with respect to income and with respect to expenditures. The distinction between elasticity of carbon footprint with respect to expenditures and elasticity with respect to income comes from the fact that the saving rate rises with income. I compile published estimates of elasticities of carbon footprint or energy requirements with respect to expenditures or income, and I compute new estimates. This totals around eighty estimates (a third of which are newly computed) for over twenty countries. This extensive coverage of the literature shows that, generally, the carbon footprint grows less rapidly than expenditures, and confirms that the income- elasticity is lower than expenditure-elasticity. Unambiguously, the assumption of an income-elasticity equal to 1, used by some top-down studies, is not supported by the published literature. I discuss the difference between carbon inequality and carbon concentration, the ambiguity in the literature between income-elasticity and expenditures-elasticity. I present the limitations of our knowledge on the income-carbon footprint relationship, from contestable assumption in the methodology as well as measurement errors in household budget surveys. I conclude with several recommendations for implementing the top-down method to assess the carbon footprint distribution.
    Keywords: carbon footprint, inequality, household consumption, income and expenditure surveys, elasticity
    JEL: D12 D14 D30 Q56 R20
    Date: 2021–01
  18. By: Christos Kotsogiannis; Alan Woodland
    Abstract: Recent climate change negotiations have emphasised the need for developing countries to take the lead by undertaking economy-wide absolute emission reduction targets but also the obligation of developed countries to provide financial resources to assist them in their mitigation efforts. This paper explores the role of such financial resources in achieving strict welfare gains (Pareto improvements) when emission targets deviate from the global welfare optimum, and there are impediments to international trade. Using a general equilibrium model of international trade with global emission externalities, it is shown that strict Pareto improvements in welfare may arise from multilateral financial transfers when either trade or carbon taxes are constrained away from their Pareto optimal levels. The purpose of financial transfers is then to account for the impact on emissions of trade distortions and inappropriate carbon pricing. Importantly, such transfers exist if and only if a generalized normality condition is violated. Numerical examples illustrate the financial transfer mechanism.
    Keywords: Global emissions, environmental externalities, multilateral financial (income) transfers, Pareto-improving reforms.
    JEL: H23 F18
    Date: 2020–12
  19. By: Curtis, John; Grilli, Gianluca
    Date: 2020
  20. By: Soetevent, Adriaan R.
    Abstract: Consumption rivalry generates variation in the choice sets decision-makers face. Not taking into account such variation may generate biased demand estimates. It remains unclear how this impacts estimation accuracy because researchers often lack information on temporal variation in product availability. This paper uses information on the exact set of available alternatives at the time of choosing to formulate time-variant deterministic constraints. In an application to the market for public charging infrastructure for electric vehicles, I show that incorporating this information significantly improves the out-of-sample forecasting accuracy of individual choice and hence the aggregate demand estimates for local charging facilities.
    Keywords: Discrete choice,Preference estimation,Consumption rivalry,Electric Vehicles
    JEL: H23 H42 H54 Q41 Q48
    Date: 2021
  21. By: Gordeev, Dmitriy (Гордеев, Дмитрий) (The Russian Presidential Academy of National Economy and Public Administration); Kosukhina, Ekaterina (Косухина, Екатерина) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The aim of the study is to develop methodology to evaluate influence of prices of gasoline fuel and income on fuel consumption of passenger cars. Estimated results will be used for development of recommendations needed for economic growth of Russian Federation.
    Date: 2020–05
  22. By: Hilde Christiane Bjørnland; Roberto Casarin; Marco Lorusso; Francesco Ravazzolo
    Abstract: We analyse fiscal policy responses in oil rich countries by developing a Bayesian regime-switching panel country analysis. We use parameter restrictions to identify procyclical and countercyclical fiscal policy regimes over the sample in 23 OECD and non-OECD oil producing countries. We find that fiscal policy is switching between pro- and countercyclial regimes multiple times. Furthermore, for all countries, fiscal policy is more volatile in the countercyclical regime than in the procyclical regime. In the procyclical regime, however, fiscal policy is systematically more volatile and excessive in the non-OECD (including OPEC) countries than in the OECD countries. This suggests OECD countries are able to smooth spending and save more than the non-OECD countries. Our results emphasize that it is both possible and important to separate a procyclical regime from a countercyclical regime when analysing fiscal policy. Doing so, we have encountered new facts about fiscal policy in oil rich countries.
    Keywords: Dynamic Panel Model, Mixed-Frequency, Markov Switching, Bayesian Inference, Fiscal Policy, Resource Rich Countries, Oil Prices
    Date: 2020–12
  23. By: Oladunni, Sunday
    Abstract: The global oil dynamics has significant implications for both oil exporting and importing small open economies. However, much of the literature on oil shocks is oriented towards advanced oil-importing economies. Micro-founded studies that explore the effects of oil shocks from the standpoint of oil-endowed emerging economies are rather sparse, compared to the preponderance of studies on developed oil importers and exporters. Thus, resulting to a consequential knowledge gap on oil price transmission mechanism and a limited appreciation of the growing policy dilemmas in these economies. In addition, we consider a positive oil price shock to uncover the extent to which oil price increase is positive for the economy. The paper, therefore, sets up a new Keynesian dynamic stochastic general equilibrium (DSGE) model to study how an oil price shock impact macroeconomic aggregates in an oil-rich emerging economy. The typical small open economy model is enriched with an export-oriented oil firm, a multi-sector foreign production and a non-oil domestic firm. The model is closed with exchange rate-augmented interest rate rule, and it is calibrated for Nigeria, an important oil producer. Macroeconomic responses, sequel to a simulated positive oil price shock, reveal evidence of Dutch disease and the operation of the Harrod-Balassa-Samuelson effect. We find a compelling need for oil-endowed emerging economies to address these phenomena by ensuring a robust non-oil sector with limited exposure to the vagaries of oil price oscillation.
    Keywords: Oil Price, DSGE Model, Macroeconomic Dynamics, Emerging Oil Exporter
    JEL: E32 E37 E39
    Date: 2020–03–13
  24. By: Stranadko, Nataliya
    Abstract: The transformation from Kyoto to Paris has been analysed by international relations scholars, international law, and transnational governance theory. The international relations literature looks at the climate regime from a perspective of power distribution, state interests, institutions, and multilateral negotiations. International law theory focuses on legal analysis and design of international climate agreements. The transnational governance literature examines the participation of transnational actors at different levels of governance. However, each of these theories overlooks a bilateral trend of cooperation in a multilateral setting that arises as a part of construction or reconstruction of the international regime. Cooperation on climate change between the European Union and the United States deserves special scientific attention. Over the last 30 years of climate negotiations, these nations have met many challenges. However, these challenges currently give opportunities to revise the New Transatlantic Agenda and build a fruitful bilateral partnership and policy coordination in the area of climate change.
    Keywords: Bilateral cooperation,climate change,environmental treaties,European Union,global governance,soft law,subnational actors,United States of America
    Date: 2021
  25. By: Chimere O. Iheonu (Abuja, Nigeria); Ogochukwu C. Anyanwu (University of Nigeria, Nsukka, Nigeria); Obinna K. Odo (University of Nigeria, Nsukka, Nigeria); Solomon Prince Nathaniel (University of Lagos, Akoka, Nigeria)
    Abstract: International trade and urbanization are increasing at an unprecedented rate in sub-Saharan Africa (SSA). The region has also witnessed a fair share of economic growth, with minimal investment and consumption of renewables. Therefore, this study investigates the influence of economic growth, international trade, and urbanization on CO2 emissions in SSA. The current study enriches the existing literature by employing the panel quantile regression analysis to account for existing levels of CO2 emissions in the region. Empirical findings reveal that GDP increases CO2 emissions across quantiles, especially in countries where the existing level of CO2 emissions is low. International trade improves environmental sustainability in countries where the existing levels of CO2 emissions are at their lowest and highest levels but exacts a reversed impact on CO2 emissions at the median. Further findings suggest that urbanization increases CO2 emissions across the observed quantiles with a more pronounced effect in countries where the existing levels of CO2 emissions are at its lowest level. The study also reveals a bi-directional causality between economic growth, international trade, urbanization, and the emissions of CO2. The limitations of the study and possible direction for future research have been highlighted. Policy directions are discussed.
    Keywords: Economic Growth, International Trade, Urbanization, CO2 Emission, sub-Saharan Africa, Quantile Regression
    Date: 2021–01
  26. By: Amélie Charles (Audencia Business School); Lian Chew (University of Notthingham Ningbo); Olivier Darné (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes - IUML - FR 3473 Institut universitaire Mer et Littoral - UBS - Université de Bretagne Sud - UM - Le Mans Université - UA - Université d'Angers - CNRS - Centre National de la Recherche Scientifique - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UN - Université de Nantes - ECN - École Centrale de Nantes); Sandy Suardi (University of Wollongong)
    Abstract: The last five decades have witnessed dramatic changes in crude oil price dynamics. We identify the influence of extreme oil shocks and changing oil price uncertainty dynamics associated with economic and political events. Neglecting these features of the data can lead to model misspecification that gives rise to: firstly, an explosive volatility process for oil price uncertainty; and secondly, erroneous output growth dynamic responses to oil shocks. Unlike past studies, our results show that the sharp increase in oil price uncertainty after mid-1985 has a pernicious ed'ect on output growth. There is evidence that output growth responds symmetrically (asymmetrically) to positive and negative shocks in the period when oil price uncertainty is lower (higher) and more (less) persistent before (after) mid-1985. These results highlight the importance of accounting for outliers and volatility breaks in oil price and output growth, and the need to better understand the response of economic activity to oil shocks in the presence of oil price uncertainty. Our results remain qualitatively unchanged with the use of real oil price.
    Keywords: Volatility breaks,C32,Oil price uncertainty,Impulse response,Outliers JEL Classification: G10,E32
    Date: 2020–11
  27. By: Bangsund, Dean A.; Hodur, Nancy M.
    Keywords: Demand and Price Analysis, Environmental Economics and Policy, Marketing, Resource /Energy Economics and Policy
    Date: 2020–12–09
  28. By: Korff, Alex
    Abstract: This paper studies the relationship between retail gasoline pricing strategies and potential demand. Utilising detailed data on traffic on the German Autobahn and the special case of Bundesautobahntankstellen, the interaction between demand and price competition is studied, as are the changes in competition intensity across distances and road networks. The observed relationships match an Edgeworth cycling behaviour, whose steps appear to be determined by the changes in demand. Cycling intensity and undercutting increase with traffic, while relenting phases are timed to substantial changes in traffic ows. Thus, competition is found to intensify with rising potential demand, as that increases the incentives of undercutting.
    Keywords: Retail gasoline prices,Edgeworth Cycles,Regional Infrastructure,Price Competition
    JEL: D22 D40 L11 L81 R12
    Date: 2021
  29. By: D\'avid Csercsik
    Abstract: In this paper we study the so-called minimum income condition order, which is used in some day-ahead electricity power exchanges to represent the production-related costs of generating units. This order belongs to the family of complex orders, which imply non-convexities in the market clearing problem. We demonstrate via simple numerical examples that if more of such bids are present in the market, their interplay may open the possibility of strategic bidding. More precisely, we show that by the manipulation of bid parameters, a strategic player may increase its own profit and potentially induce the deactivation of an other minimum income condition order, which would be accepted under truthful bidding. Furthermore, we show that if we modify the objective function used in the market clearing according to principles suggested in the literature, it is possible to prevent the possibility of such strategic bidding, but the modification raises other issues.
    Date: 2020–12
  30. By: Jacks, David; Stuermer, Martin
    Abstract: We provide evidence on the dynamic effects of fuel price shocks, shipping demand shocks, and shipping supply shocks on real dry bulk freight rates in the long run. We first analyze a new and large dataset on dry bulk freight rates for the period from 1850 to 2020, finding that they followed a downward but undulating path with a cumulative decline of 79%. Next, we turn to understanding the drivers of booms and busts in the dry bulk shipping industry, finding that shipping demand shocks strongly dominate all others as drivers of real dry bulk freight rates in the long run. Furthermore, while shipping demand shocks have increased in importance over time, shipping supply shocks in particular have become less relevant.
    Keywords: Dry bulk, maritime freight rates, structural VAR
    JEL: E30 N7 R4
    Date: 2020–12
  31. By: de Bruin, Kelly; Ayuba, Victoria
    Date: 2020
  32. By: Vergara, Felipe; Lakes, Tobia Maike
    Abstract: The development of biogas production in Germany has reshaped agricultural land use and production schemes since the implementation of the Renewable Energy Sources Act in 2000. It is associated with a widespread introduction of silage maize as a major substrate. While it contributes significantly to the renewable energy production, intensive maize-for-biogas production comes at the expense of loss of area for food production, is associated with negative ecological effects due to intensive and large-area monoculture, and is also associated with an increase in land prices. However, due to missing data, little is known about the plot-based distribution and development of silage maize for biogas production and, therefore, the local effects remain largely unstudied. This paper aims to identify the plot-level based likelihood of silage maize cultivated for biogas production in the Brandenburg region of Germany from 2008 through 2018. For this ongoing study, we developed and applied a spatially explicit multicriteria approach using plot-level land use information from Integrated Administration and Control System (IACS) data and additional datasets on biogas plants. Our initial results show that within the 10 years of this study, the area which was most likely used for biogas silage maize production has tripled. We also find biogas silage maize production has been concentrated in the northwest and central-east of the region, and we identified distinct silage maize hotspots within the area. To the knowledge of the authors, this is the first attempt at biogas production. From our study, we can derive some of the spatially explicit effects of the Renewable Energy Sources Act on local land use dynamics over time. This may be an important asset for comparative and future studies on the effects of policy-driven land use changes on ecological and land price outcomes which will be subject of further analyses.
    Keywords: Biogas,biogas silage maize,maizification,multicriteria approach,AHP,IACS,land use
    JEL: Q24 Q28
    Date: 2019
  33. By: World Bank
    Keywords: Communities and Human Settlements - Land Administration Communities and Human Settlements - Land Use and Policies Energy - Hydro Power Law and Development - Water Resources Law Poverty Reduction - Migration and Development Water Resources - Dams and Reservoirs
    Date: 2019–10
  34. By: Eßer, Jana; Frondel, Manuel; Sommer, Stephan
    Abstract: Die Bereitschaft, freiwillige Zahlungen zum Ausgleich von CO2-Emissionen zu leisten, etwa bei Flügen, hat in den vergangenen Jahren erheblich zugenommen. Eine Möglichkeit, diese Kompensationsbereitschaft weiter zu erhöhen, besteht in der Aktivierung einer sozialen Norm, indem darauf aufmerksam gemacht wird, dass ein Emissionsausgleich gesellschaftlich erwünscht ist. Vor diesem Hintergrund untersucht dieser Beitrag die Bereitschaft, die durch Flugreisen verursachten CO2-Emissionen durch den Kauf von Ausgleichszertifikaten zu kompensieren anhand eines diskreten Entscheidungsexperimentes, das in eine Erhebung aus dem Jahr 2019 eingebettet wurde. Dabei wurde eine soziale Norm in zufälliger Weise vorgegeben, ebenso wie eine von drei Kompensationshöhen von 5, 10 oder 15 Euro. Im Ergebnis zeigt sich, dass 57,0% der Probanden sich dafür entscheiden, die Emissionen eines künftig anstehenden Fluges auszugleichen. Hierbei gibt es nur geringe, statistisch nicht signifikante Unterschiede zwischen der Gruppe, die mit einer sozialen Norm konfrontiert wurde, und der Kontrollgruppe. Auch die Kompensationshöhe scheint keinen statistisch signifikanten Einfluss auf die Kompensationsbereitschaft zu haben, möglicherweise weil die Unterschiede in den Kompensationshöhen gering sind.
    Keywords: Diskretes Entscheidungsexperiment,Panelerhebung,Klimawandel
    JEL: D12 C25
    Date: 2021
  35. By: Kaumudi Misra (Institute for Social and Economic Change)
    Abstract: The current paper attempts to evaluate the impact of Perform-Achieve-Trade (PAT) policy on the cement and iron and steel industries in India. A descriptive statistics analysis has been done separately for the cement and iron and steel industry, and the two are compared to understand the major differences between them. The paper uses panel data for a time period of nine years: 2007-2015. The difference-in-difference methodology is adopted for the analysis. The random effect two way error component model is used to analyse the impact of PAT policy on the industries. The study finds that in the case of the cement industry, the PAT policy is effective and helps the industry in transitioning to energy efficiency. The policy is found to be insignificant in the case of the iron and steel industry: The reasons for the same are discussed in the paper.
    Keywords: Achieve-trade policy; Cement industries; Iron industries; Steel industries
    Date: 2019
  36. By: Adel Ben Youssef (Université Côte d'Azur, CNRS, GREDEG (France), GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (... - 2019) - COMUE UCA - COMUE Université Côte d'Azur (2015 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur); Sabri Boubaker; Anis Omri
    Abstract: Sustainability has become an important and widely applied concept in the environmental economics literature. Despite the numerous studies employing an environmental Kuznets curve (EKC) this model has been critiqued for its incompleteness. This article builds a modified EKC model to examine the contribution of financial development for achieving sustainable development. Using data for 14 selected Middle East and North Africa (MENA) countries during 1990-2017, the empirical results show that the EKC hypothesis is valid for per capita CO 2 emissions and ecological footprint. The results provide evidence also of the presence of linear and non-linear relationships between financial development and non-sustainability and indicate that financial development is likely to have a small long-term impact on sustainable development. This suggests that current efforts aimed at protecting the environment and achieving sustainability will be ineffective given the extent of the problem.
    Keywords: Financial development,Sustainable development,Modified EKC-model
    Date: 2020–11

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