nep-ene New Economics Papers
on Energy Economics
Issue of 2021‒02‒01
fifty-six papers chosen by
Roger Fouquet
London School of Economics

  1. What Matters for Electrification? Evidence from 70 Years of U.S. Home Heating Choices By Lucas W. Davis
  2. Renewable Energy Law and Auctions in Vietnam By Minh Ha-Duong; Ngo To Nhien
  3. Decreasing costs of renewables: Implications for Indonesia's climate targets By Eckstein, Johannes; Ordonez, Jose Antonio; Wachsmuth, Jakob
  4. Unlocking Renewable Energy Potential in Indonesia: Assessment on Project Viability By Alin Halimatussadiah; Atiqah Amanda Siregar; Rafika Farah Maulia
  5. Decreasing costs of renewables: Implications for Mexico's climate targets By Eckstein, Johannes; Ordonez, Jose Antonio; Wachsmuth, Jakob
  6. Decreasing costs of renewables: Analysis of energy sector planning and climate policy in Mexico By Eckstein, Johannes; Kurdziel, Marie-Jeanne; Ordonez, Jose Antonio
  7. Decreasing costs of renewables: Insights on energy sector planning and climate policy from three country case studies By Eckstein, Johannes; Kurdziel, Marie-Jeanne; Castro, Leonardo Nascimento; Ordonez, Jose Antonio
  8. Biomass co-firing and renewable portfolio standard scenarios to 2030 By Minh Ha-Duong; an Ha Truong; Hoang Anh Tran
  9. "Mixed Oligopoly and Market Power Mitigation: Evidence from the Colombian Wholesale Electricity Market" By Carlos Suarez
  10. "Private management and strategic bidding behavior in electricity markets: Evidence from Colombia" By Carlos Suarez
  11. Estimating the Total Cost of Ownership (TCO) of Electrified Vehicle in Indonesia By Riyanto; Chaikal Nuryakin; Setya Agung Riyadi; Natanael Waraney Gerald Massie
  12. Disaggregated Oil Shocks and Stock-Market Tail Risks: Evidence from a Panel of 48 Countries By Rangan Gupta; Xin Sheng; Christian Pierdzioch; Qiang Ji
  13. West Bank and Gaza Environment Priorities Note By World Bank
  14. Estado del arte de las estadísticas mineras del uso de agua y energía en los países andinos: intercambio metodológico entre Chile y el Perú en el marco de la cooperación Sur-Sur By Lewinsohn, José Luis
  15. عرضه، تقاضا، و پیشنهاد قیمت در بازار برق ایران By Ghaninejad, Mousa
  16. Carbon footprint and economic performance of dairy farms: the case of protected designation of origin dairy farms in France By Mathieu Lambotte; Stéphane de Cara; Valentin Bellassen; Catherine Brocas
  17. Are we moving towards an energy-efficient low-carbon economy? An input-output LMDI decomposition of CO2 emissions for Spain and the EU28 By Darío Serrano-Puente
  18. Is Environmentalism the Right Strategy to Decarbonize the World? By Marco A. Marini; Ornella Tarola; Jacques-François Thisse
  19. The heat is off! The role of technology attributes and individual attitudes in the diffusion of smart thermostats: Findings from multi-country survey By Tu, Gengyang; Faure, Corinne; Schleich, Joachim; Guetlein, Marie-Charlotte
  20. Policy mixes for just sustainable regional development in industrially overspecialized regions: the case of two Norwegian petro-maritime regions By Samson Afewerki; Asbjørn Karlsen
  21. Chad Petroleum Sector Diagnostic Report By World Bank
  22. Environmental Fiscal Reform in Morocco By Grzegorz Peszko; Simon Black; Alexandrina Platonova-Oquab; Dirk Heine; Govinda Timilsina
  23. Residential and Industrial Energy Efficiency Improvement: A Dynamic General Equilibrium Analysis of the Rebound Effect By Sondes Kahouli; Xavier Pautrel
  24. The micropolitics of speculative green urbanism at Forest City, Iskandar Malaysia By Koh, Sin Yee; Zhao, Yimin; Shin, Hyun Bang
  25. Mothballing in a Duopoly: Evidence from a (Shale) Oil Market By Nicola Comincioli; Verena Hagspiel; Peter M. Kort; Francesco Menoncin; Raffaele Miniaci; Sergio Vergalli
  26. Climate change policy: the case for a Covid-19 carbon tax By Ralf Martin; John Van Reenen
  27. Polluting Public Funds: The Effect of Environmental Regulation on Municipal Bonds. By Akshaya Jha; Stephen A. Karolyi; Nicholas Z. Muller
  28. Le Québec économique 9 - Chapitre 18 - L’aérospatiale numérique au Québec : un écosystème innovant au cœur des enjeux de la société By Fabiano Armellini; Catherine Beaudry; Mario Bourgault; Patrick Cohendet; Laurent Simon; Laurence Solar-Pelletier; Nasrin Sultana; Ekaterina Turkina
  29. Niger - Land, climate, energy, agriculture and development: A study in the Sudano-Sahel Initiative for Regional Development, Jobs, and Food Security By Adamou, Pr. Rabani; Ibrahim, Boubacar; Bonkaney, Abdou Latif; Seyni, Abdoul Aziz; Idrissa, Mamoudou
  30. Is Air Pollution Regulation Too Stringent? By Joseph S. Shapiro; Reed Walker
  31. Overstraining International Climate Finance: When Conflicts of Objectives Threaten Its Succes By Wolfgang Buchholz; Dirk Rübbelke
  32. 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
  33. REME -- Renewable Energy and Materials Economy -- The Path to Energy Security, Prosperity and Climate Stability By Peter Eisenberger
  34. Predicting the Performance of a Future United Kingdom Grid and Wind Fleet When Providing Power to a Fleet of Battery Electric Vehicles By Anthony D Stephens; David R Walwyn
  35. What Were the Odds? Estimating the Market's Probability of Uncertain Events By Ashley Langer; Derek Lemoine
  36. Are we measuring natural resource wealth correctly?: A reconceptualization of natural resource value in the era of climate change By Amir Lebdioui
  37. Mining for Oil Forecasts By ; Nida Cakir Melek; Charles W. Calomiris
  38. Effects of Environmental and Carbon Taxation. A Literature Review By Angela Köppl; Margit Schratzenstaller
  39. Environmental Reviews Fail to Accurately Analyze Induced Vehicle Travel from Highway Expansion Projects By Volker, Jamey; Lee, Amy; Handy, Susan
  40. Synthetisches Methan für Lkw und Schiffe: Akteurslandschaft und Marktentwicklungsvoraussetzungen in Deutschland. Zwischenergebnisse der Akzeptanzforschung im Projekt MethSys By Scherrer, Aline; Burghard, Uta
  41. Willingness to pay for clean air: Evidence from diesel vehicle registration restrictions in Japan By Shuhei Nishitateno; Paul J. Burke
  42. Nigeria - Land, climate, energy, agriculture and development: A study in the Sudano-Sahel Initiative for Regional Development, Jobs, and Food Security By Olayide, Olawale Emmanuel
  43. Showing off cleaner hands: mandatory climate-related disclosure by financial institutions and the financing of fossil energy By Mésonnier Jean-Stéphane; Nguyen Benoît
  44. Mergers as an environmental ally: Socially excessive and insufficient merger approvals By Choi, Pak-Sing; Espinola-Arredondo, Ana; Munoz, Felix
  45. OPEC's crude game: Strategic Competition and Regime-switching in Global Oil Markets By Thomas Størdal Gundersen; Even Soltvedt Hvinden
  46. The Economics of Variable Renewables and Electricity Storage By Javier L\'opez Prol; Wolf-Peter Schill
  47. Minority games played by arbitrageurs on the energy market By Tim Ritmeester; Hildegard Meyer-Ortmanns
  48. Electrification and Welfare for the Marginalized: Evidence from India By Kumar Sedai, A.; Jamasb, T.; Nepal, R.; Miller, R.
  49. Integrating Gender and Social Dimensions into Energy Interventions in Afghanistan By Nicolina Angelou; Sanjukta Roy
  50. Policy strategies and challenges for climate change mitigation in the Agriculture, Forestry and Other Land Use (AFOLU) sector By Ben Henderson; Stefan Frank; Petr Havlik; Hugo Valin
  51. Ethiopia – Land, energy, climate change, and agricultural development: A study in the Sudano-Sahel Initiative for Regional Development, Jobs, and Food Security By Admassie, Assefa; Abebaw, Degnet
  52. Information Leakage in Energy Derivatives around News Announcements By Marc Bohmann; Vinay Patel
  53. Who turns the global thermostat and by how much? By Rickels, Wilfried; Quaas, Martin F.; Ricke, Katharine; Quaas, Johannes; Moreno-Cruz, Juan; Smulders, Sjak
  54. Water-Energy-Food Nexus in the Middle East and North African Countries (MENA) By Zolfaghari, Mehdi; Jariani, Farzaneh
  55. Senegal - Land, climate, energy, agriculture and development: A study in the Sudano-Sahel Initiative for Regional Development, Jobs, and Food Security By Faye, Amy; Dièye, Mohamadou; Diakhaté, Pape Bilal; Bèye, Assane; Sall, Moussa; Diop, Mbaye
  56. Stranded assets risk derails Vietnam's plan for new coal power plants By Minh Ha-Duong

  1. By: Lucas W. Davis
    Abstract: The percentage of U.S. homes heated with electricity has increased steadily from 1% in 1950, to 8% in 1970, to 26% in 1990, to 39% in 2018. This paper investigates the key determinants of this increase in electrification using data on heating choices from millions of U.S. households over a 70-year period. Energy prices, geography, climate, housing characteristics, and household income are shown to collectively explain 90% of the increase, with changing energy prices by far the most important single factor. This framework is then used to calculate the economic cost of an electrification mandate for new homes. Households in warm states are close to indifferent between electric and natural gas heating, so would be made worse off by less than $500 annually. Household in cold states, however, tend to strongly prefer natural gas so would be made worse off by $3000+ annually. These findings are directly relevant to a growing number of policies aimed at reducing carbon dioxide emissions through electrification, and underscore the importance of pricing energy efficiently.
    JEL: H23 L51 Q41 Q42 Q48 Q54
    Date: 2021–01
  2. By: Minh Ha-Duong (VIET - Vietnam Initiative for Energy Transition, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Ngo To Nhien (VIET - Vietnam Initiative for Energy Transition)
    Abstract: This policy note examines the rationale for enacting a Renewable Energy Law in Vietnam, and to use an Auction mechanism to replace the Feed In Tariff as the main instrument to develop renewable energy sources electricity production.
    Date: 2019–06–04
  3. By: Eckstein, Johannes; Ordonez, Jose Antonio; Wachsmuth, Jakob
    Abstract: The unconditional target of Indonesia's NDC foresees a reduction of GHG emissions of 29% relative to a Business-as-Usual (BAU) scenario, to reach 2034 MtCO2eq in 2030. It further specifies that the energy sector shall take a share of 37.6% of this mitigation effort to reduce emissions by 18.8% relative to BAU, reaching 1355 MtCO2eq emissions in 2030. This study analyses how falling cost projections of renewable energy technologies (solar PV and wind energy) could inform energy sector and climate change mitigation plans of Indonesia.We show that cost projections valid for Indonesia for renewable energies have dramatically fallen over the past years. Costs projected for 2030 a couple of years ago are well undercut by more recent projections for 2030. Recent cost projections for 2030 for wind energy are 31% lower than projections dating from 2015, solar PV cost projections have fallen by 49% on average. If falling costs for renewables are considered, the renewable capacities given in RUEN (the National Energy Master Plan) could be revised at constant investments. The overall renewable energy capacity given in RUEN for 2030 could be increased from 70 GW to 85 GW. Solar PV would become the dominant source of renewable energy, wind energy would slightly surpass geothermal power generation. This increase in renewable capacities could inform the revision of Indonesia's NDC. If falling cost projections of renewables are considered, the unconditional target could be reduced from 2034 MtCO2eq to 2005 MtCO2eq at constant costs. This corresponds an increase from 29% to 30.1% reduction and presents a 9.1% increase in the ambition of the energy sector.
    Date: 2020
  4. By: Alin Halimatussadiah (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Atiqah Amanda Siregar (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI)); Rafika Farah Maulia (Institute for Economic and Social Research, Faculty of Economics and Business, Universitas Indonesia (LPEM FEB UI))
    Abstract: Indonesian Government has set an ambitious target to achieve 23 percent of renewable energy share in primary energy mix as well as in term of power sector by 2025. This target is then realized by committing a plan to build 56.4 GW additional power generation until 2028 as stated in the Electricity Supply Business Plan (RUPTL) 2019–2028. However, the deployment of RE power plant seems to be threatened due to untoward pricing policy which is considerably lower than the generation cost of RE-based electricity, resulting in the increase of possibility of future RE projects become unfeasible. Using 242 RE projects documented in 2019–2018 RUPTL, this study aims to examine feasibility of future projects under BPP price and identify other factors which could possibly increase project’s viability. The scope of this study includes several technologies such as wind, solar, hydro, mini hydro, biomass, and biogas. Financial model was employed to estimate Net Present Value (NPV) of the project as feasibility indicator. Data for project’s cost structure and financial assumption is obtained by literature review, survey and focus group discussion (FGD) to RE developers. The result shows that only less than 50 percent of the samples are feasible, accounting for only 43 per cent by number of projects (103 out of 242 projects) and 42 per cent by capacity (2,452 out of 5,888 MW). Hydro power becomes RE technologies with the highest feasibility followed by biomass. Projects located in Bangka Belitung, Gorontalo, East Kalimantan, Maluku, and North Sulawesi are all feasible, while of which in main islands particularly Java Island are mostly unfeasible due to the lower tariff. In addition to the low feasibility rate, there are several cost components which are considered as Indonesia specific costs such as local content, land acquisition cost, transmission infrastructure cost, and regional adjustment for project location which result in higher project’s cost. Finally, it is important for the government to formulate a set of incentive policy for alleviating unfeasible RE projects.
    Keywords: renewable energy — project feasibility — power plant — Indonesia
    JEL: Q42 Q48 O22
    Date: 2020
  5. By: Eckstein, Johannes; Ordonez, Jose Antonio; Wachsmuth, Jakob
    Abstract: The unconditional target of Mexico's NDC foresees a reduction of GHG emissions of 22% relative to a Business-as-Usual (BAU) scenario, to reach 762 MtCO2eq in 2030. It further specifies that specifies that electricity generation shall take a share of 30% of this mitigation effort to reduce emissions by 31.4% relative to BAU, reaching 139 MtCO2eq in 2030. This study analyses how falling cost projections of renewable energy technologies (solar PV and wind energy) could inform energy sector and climate change mitigation plans of Indonesia. We show that cost projections valid for Mexico for renewables have dramatically fallen over the past years. Costs projected for 2030 a couple of years ago are well undercut by more recent projections for 2030. Recent cost projections for 2030 for wind energy are 77% lower than projections dating from 2015, solar PV cost projections have fallen by 74% on average. If falling costs for renewables are considered, the renewable capacities given in PRODESEN (the national power sector plan) could be revised at constant investments. The overall renewable energy capacity given in PRODESEN for 2030 could be increased from 37 GW to 52 GW. This increase in renewable capacities could inform the revision of Mexico's NDC. If falling cost projections of renewable energies are considered, the unconditional target could be reduced from 762 MtCO2eq to 747 MtCO2eq at constant costs. This corresponds an increase from 22% to 23.5% reduction and presents a 23.4% increase in the ambition of the power sector. Further Reading In a companion paper, Eckstein et al. (2020a) discuss the processes and assumptions underlying the current revision of the NDC in Mexico. Based on Interviews, they discuss the roles of the different institutions responsible for energy and climate mitigation plans, their policy and planning instruments and the relationship between these. Within the same project, the team of authors has written two more studies of the same structure for Indonesia (Eckstein et al. 2020b, Ordonez and Eckstein 2020) and Argentina (Nascimento et al.2020, Kurdziel et al.2020).
    Date: 2020
  6. By: Eckstein, Johannes; Kurdziel, Marie-Jeanne; Ordonez, Jose Antonio
    Abstract: Mexico is signatory to the Paris Agreement. As such, the country submitted its first Nationally Determined Contribution (NDC) in 2014 in the run-up to the Paris agreement. In the past years, renewable energy systems have seen a massive cost reduction, which should be considered energy sector and climate change mitigation plans (also see Eckstein et al. (2020)). In view of these developments, this study analyses the process underlying the development of Mexico's NDC and its revision in 2020 with a particular focus on the energy sector and renewable energy systems. The assumptions underlying the related energy sector planning document (PRODESEN) and the relationships to the NDC are assessed. The study is completed by giving a snapshot of political constraints under the current administration of President López Obrador. The study builds on literature review and insights gained from interviews with pertinent Mexican stakeholders. In Mexico's NDC, emissions are estimated to increase by roughly 50% between 2013 and 2030 in the business as usual (BAU) scenario. The unconditional mitigation target of Mexico's NDC foresees a greenhouse gas (GHG) emissions reduction by 22% by 2030 relative to BAU. In the electricity sector, the NDC aims at a 31% GHG emissions reduction. The target setting process remains publicly undisclosed and highly politicized. The main responsibility for the NDC revision is with the Environment Ministry of Mexico (SEMARNAT). SEMARNAT is supported by the National Institute for Ecology and Climate Change (INECC), a body created under the climate change law. The highest level administrative body in the energy sector in Mexico is the Energy Ministry (SENER), responsible for the establishment of targets and strategic transmission investments for renewable energy. The 2020 NDC revision considers only enhanced energy efficiency measures and to a large extent disregards renewable energies in the power sector. Energy sector planning is described to align to political interests and not to follow cost optimization, despite the fact that cost optimization modelling exercises have been carried out by SENER and supported by international organizations. [...]
    Date: 2020
  7. By: Eckstein, Johannes; Kurdziel, Marie-Jeanne; Castro, Leonardo Nascimento; Ordonez, Jose Antonio
    Abstract: This study builds on three case studies in Argentina, Indonesia and Mexico which analyse the implications of falling costs for renewable energy systems on the countries' energy sector planning and climate policy. Each case study consists of two country specific reports. The first report analyses how falling costs of renewable energy could impact country specific power sector development. The second report analyses the process of climate and renewable energy target setting, as well as the prevalent narrative around renewable energy integration. Finally, the present report provides a cross-country synthesis of all case studies, providing insights into the question of how falling costs of renewable energy systems might support the achievement of the goals of the Paris Agreement. Globally falling cost figures for solar PV and wind energy do not naturally translate into increased ambition in planning. The integration of these technologies to the energy system still face substantial barriers in our case study countries: The integration of higher shares of renewable energy goes along with investments into transmission and distribution network modernisation, network expansion and interconnections between power grids. Though an important element, falling costs for renewable energy projects alone do not necessarily translate into overall reduced power system costs. While globally falling costs for wind and solar PV are indicative for learning curve effects in the manufacturing of these technologies, the LCOE of renewable projects is highly sensitive to financing costs. These are largely determined by the local political and regulatory framework and remain high in our case countries, representing a barrier. We find that a number of regulatory and administrative barriers hinder higher integration of solar PV and wind. Frequently changing regulations and ill-designed support schemes often prevail over welldesigned renewable energy auction schemes that are followed over several years. We find the political economy fossil fuels to be pivotal in the energy sector and climate planning and target setting processes. Fossil fuel endowments and a long history of natural resource exploitation lead to strong vested interests towards sustaining the use of fossil fuels to satisfy a growing electricity demand. [...]
    Date: 2020
  8. By: Minh Ha-Duong (VIET - Vietnam Initiative for Energy Transition, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); an Ha Truong (VIET - Vietnam Initiative for Energy Transition); Hoang Anh Tran (VIET - Vietnam Initiative for Energy Transition)
    Date: 2020–05
  9. By: Carlos Suarez (Department of Econometrics, Statistics and Applied Economics, Research Group on Governments and Markets, University of Barcelona, Avinguda Diagonal 690, 08034 Barcelona, Tower 6 Floor 3. Engineering Department, Research Group on Energy, Environment and Development, Jorge Tadeo Lozano University.)
    Abstract: Using information on price bids in wholesale electricity pools and empirical techniques described in the literature on electricity markets, this study identifies the market power mitigation effect of public firms in the Colombian market. The results suggest that while private firms exercise less market power than is predicted by a profit-maximization model, there are marked differences between private and public firms in their exercise of unilateral market power. These findings support the hypothesis of the market power mitigation effect of public firms.
    Keywords: Electricity Markets, Market Power, Privatization, Mixed Oligopoly, Regulatory Intervention. JEL classification: L13, L94, C10.
    Date: 2021–01
  10. By: Carlos Suarez (Department of Econometrics, Statistics and Applied Economics, Research Group on Governments and Markets, University of Barcelona, Avinguda Diagonal 690, 08034 Barcelona, Tower 6 Floor 3. Engineering Department, Research Group on Energy, Environment and Development, Jorge Tadeo Lozano University.)
    Abstract: In this paper I undertake a policy evaluation of the impact of the switch from public to private management of electricity generation units on their price bidding strategies. I draw on information about the bidding strategies of units in the Colombian electricity market to perform a double difference analysis. The evidence observed is coherent with theoretical behavioral predictions for profit maximizing agents facing short positions in forward contracts.
    Keywords: Electricity Markets, Market Power, Privatization, Mixed Oligopoly, Double Differences. JEL classification: L13, L94, C10.
    Date: 2021–01
  11. By: Riyanto (Department of Economics, Faculty of Economics and Business, Universitas Indonesia); Chaikal Nuryakin (Department of Economics, Faculty of Economics and Business, Universitas Indonesia); Setya Agung Riyadi (Institute for Economic and Social Research Faculty of Economics and Business Universitas Indonesia (LPEM FEB UI)); Natanael Waraney Gerald Massie (Institute for Economic and Social Research Faculty of Economics and Business Universitas Indonesia (LPEM FEB UI))
    Abstract: With the Electrified Vehicles (EVs) ventures being in the early stage, the cost-benefit analysis of the vehicles is key towards capturing the Indonesian market. As consumers, however, pricing may not only be the costs they consider; they also consider the total cost of ownership (TCO) of the cars they purchase. With that regard, this study discusses the total cost of ownership (TCO) of the EV in the Indonesian context, including calculations for HEV (Hybrid Electric Vehicle), PHEV (Plug-in Hybrid Electric Vehicle), and BEV (Battery Electric Vehicle), as well as Internal Combustion Engine (ICE) vehicles for comparisons. Specifically, this study aims to: (i) identify the monetary factors which affects total cost of ownership (TCO) of electric and conventional cars in Indonesia, (ii) construct a TCO model and calculate the value of total cost of ownership of electric and conventional cars in Indonesia, and (iii) compare the value of total cost of ownership of electric and conventional cars in Indonesia related to the relevant switching cost between EVs and ICE. Our findings suggest that generally, in Indonesia, higher usage and/or length of ownership of EVs lead to more competitive TCO compared to ICE. We also explore a comprehensive number of scenarios (e.g., total annual mileage, years of ownership, price, fuel prices, and cost incentives) in which the TCO of EV maximizes Indonesian consumer welfare.
    Keywords: electrified vehicle — incentives — total cost of ownership — Indonesia
    JEL: C63 L62 O14
    Date: 2020
  12. By: Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hateld 0028, South Africa); Xin Sheng (Lord Ashcroft International Business School, Anglia Ruskin University, Chelmsford, CM1 1SQ, UK); Christian Pierdzioch (Department of Economics, Helmut Schmidt University, Holstenhofweg 85, P.O.B. 700822, 22008 Hamburg, Germany); Qiang Ji (Institutes of Science and Development, Chinese Academy of Sciences, Beijing, China; School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing, China)
    Abstract: We analyse the impact of oil supply, global economic activity, oil-specific consumption demand, and oil-inventory demand shocks on equity-market tail risks of a panel of 48 developed and emerging economies over the monthly period from 1975:01 to 2017:12. We find that, oil supply, global economic activity, and oil-inventory demand shocks reduce tail risks, but oil-specific consumption demand shock increases tail risks, with these effects stronger in oil-exporting countries. Our results have important implications for investors and policymakers.
    Keywords: Oil shocks, Tail risks, International stock markets, Local projection model, Impulse response functions
    JEL: C23 G01 G11 G12 Q41
    Date: 2021–01
  13. By: World Bank
    Keywords: Environment - Air Quality & Clean Air Environment - Climate Change Impacts Environment - Environmental Economics & Policies Environment - Environmental Management Environment - Pollution Management & Control Environment - Water Resources Management Water Supply and Sanitation - Urban Solid Waste Management
    Date: 2019
  14. By: Lewinsohn, José Luis
    Abstract: Chile y el Perú son líderes en la explotación de cobre, metal que tendrá una elevada demanda de países e industrias que tienen como meta la neutralidad en carbono. Ambos países afrontan el desafío de cumplir las exigencias internacionales de sostenibilidad en la explotación de los recursos mineros, así como similares desafíos internos, en especial la gestión del agua y la energía en la minería, lo que amerita interrelaciones cada vez más acentuadas. La cooperación Sur-Sur es uno de los instrumentos que la CEPAL promueve con el fin de que los países de la región intercambien buenas prácticas de políticas, metodologías y estadísticas para mejorar sus capacidades institucionales. La cooperación entre ambos países en el área de la transferencia metodológica de las estadísticas del agua y la energía en la minería ha sido sistemática, colaborativa y coherente, y ha brindado herramientas importantes para una gestión mejorada y transparente de estos insumos críticos, aportando a una renovada gobernanza y a una mayor sostenibilidad de la minería. La CEPAL, mediante el programa MINSUS de la cooperación alemana, impulsó esta cooperación entre países para avanzar hacia la consecución de los Objetivos de Desarrollo Sostenible de la Agenda 2030.
    Date: 2021–01–19
  15. By: Ghaninejad, Mousa
    Abstract: English Abstract: In this paper, I review the supply and demand side of the electricity market in Iran. I review the potential bidding strategies that are in place in this market. I evaluate the optimality of bidding and introduce a new bidding strategy that could raise the profits of the firms. In the market of this study, firms are allowed to bid step-wise and are constrained to bid ten steps per bid. The market dispatcher estimates the market demand and based on the cumulated supply functions clears the market at one specific price. Those steps that are below the market clearing price will be allowed to produce and sell in the market. I argue that a continuous supply function is optimal in this setting and it is at the profit of the firms to use a supply function as close to a continuous supply as possible, i.e. using all ten steps. Persian Abstract: این مقاله به بررسی عرضه و تقاضا در بازار برق ایران می‌پردازد. ابتدا ساختارهای پیشنهاد قیمت در بازار برق ایران بررسی می‌شود. سپس، بهینگی هر کدام از این ساختارهای پیشنهاد قیمت و ارتباط آن با بازار برق در ایران بررسی می‌شود. در بازار مورد مطالعه، هر تولیدکننده می‌تواند تا ده پله پیشنهاد قیمت بدهد. شرکت برق سپس با تحمین تقاضا و جمع عرضه‌ها در بازار قیمت نهایی را اعلام می‌کند. پله‌هایی که پایین‌تر از قیمت نهایی باشد اجازه‌ی تولید خواهند داشت. من در این مقاله به طور نظری اثبات می‌کنم که استفاده از هر ده پله برای تولیدکننده بهینه است. بنابراین، جهت بیشینه کردن سود، هر تولیدکننده باید تا حد ممکن شبیه تابعی پیشنهاد قیمت بدهد که پیوسته باشد.
    Keywords: Bidding; Electricity Market; Day-ahead Market; Energy; Policy
    JEL: L94 O13 P28
    Date: 2020–12–20
  16. By: Mathieu Lambotte (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Stéphane de Cara (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Valentin Bellassen (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Catherine Brocas (IDELE - Institut de l'élevage)
    Abstract: This paper assesses the drivers of greenhouse gas emissions and economic performances for a sample of dairy farms Protected Designation of Origin dairy farms in France. Investigating caeteris paribus drivers of performance, we conclude that synergies are rare. Investing in farming equipment, optimizing fuel use or suppressing manure composting can however improve environmental performance by 5 to 13% without impairing profits. In parallel, increasing labor productivity and reducing the share of protein in the diet enhances the economic performance by 7 to 21% without increasing GHG emissions. On the debated merit of intensiveness, our analysis leans towards a negative influence of concentrates, especially protein-rich ones such as soybean cakes, both on economic and environmental performances. This result, consistent with previous studies on extensive systems, could be conditioned by a good know-how and management of grass.
    Keywords: dairy farms,gross margin,greenhouse gas emissions,Protected Designation of Origin,Appelation d'origine,AOC,Emissions de gaz à effet de serre,Marge brute,Exploitation laitière
    Date: 2021
  17. By: Darío Serrano-Puente (Banco de España)
    Abstract: Spain is on a path towards the decarbonization of the economy. This is mainly due to structural changes in the economy, where less energy-intensive sectors are gaining more relevance, and due to a higher use of less carbon-intensive primary energy products. This decarbonization trend is in fact more accentuated than that observed in the EU28, but there is still much to be done in order to reverse the huge increases in emissions that occurred in Spain prior to the 2007 crisis. The technical energy efficiency is improving in the Spanish economy at a higher rate than in the EU28, although all these gains are offset by the losses that the country suffers due to the inefficient use of the energy equipment. There is an installed energy infrastructure (in the energy-consumer side) in the Spanish economy that is not working at its maximum rated capacity, but which has very high fixed energy costs that reduce the observed energy efficiency and puts at risk the achievement of the emissions and energy consumption targets set by the European institutions. We arrive to these findings by developing a hybrid decomposition approach called «input-output logarithmic mean Divisia index» (IO-LMDI) decomposition method. With this methodological approach, we can provide an allocation diagram scheme for assigning the responsibility of primary energy requirements and carbon-dioxide emissions to the end-use sectors, including both economic and non-productive sectors. In addition, we analyze more potential influencing factors than those typically examined, we proceed in a way that reconciles energy intensity and energy efficiency metrics, and we are able to distinguish between technical and observed end-use energy efficiency taking into account potential rebound effects and other factors.
    Keywords: CO2 emissions, energy efficiency, decomposition analysis, input-output, LMDI
    JEL: C67 O13 Q4 Q5
    Date: 2021–01
  18. By: Marco A. Marini (Sapienza Università di Roma); Ornella Tarola (Sapienza Università di Roma); Jacques-François Thisse (CORE-UCLouvain, HSE University and CEPR)
    Abstract: We study how the supply of environmentalism, which is de…ned by psychic bene…ts (costs) associated with the purchase of high-environmental (low-environmental) qualities, a¤ects the way …rms choose their products and the ensuing consequences for the global level of pollution. Contrary to general belief, a high supply of environmentalism does not give rise to a better environmental outcome because it endows …rms with more market power which they use to maximize pro…ts. By contrast, standard policy instruments such as a minimum quality standard or the use of greener technologies leads to a better ecological footprint.
    Keywords: Environmentalism, Psychic Costs and BenefiÂ…ts, Vertical Product Differentiation, Environmental Policy
    JEL: D11 L13 Q50
    Date: 2020–12
  19. By: Tu, Gengyang; Faure, Corinne; Schleich, Joachim; Guetlein, Marie-Charlotte
    Abstract: Smart thermostats may provide up to 10% savings in residential thermal energy use without loss of comfort, yet their diffusion has typically been slow. To better understand adoption of these devices, we conducted an online survey with approximately 5,500 respondents from eight European countries that included both a discrete choice experiment (DCE) and stated past adoption of smart thermostats. The results we obtained by estimating mixed logit models suggest that households value heating cost savings, remote temperature control, the display of changes in energy consumption, and recommendations by experts, albeit with substantial heterogeneity across countries; in comparison, subsidies are positively valued in all countries except for Germany and Spain, and recommendations by energy providers in all countries except Poland where they are negatively valued. Further, the findings provide evidence that consumer innovativeness reinforces the acceptance of technical attributes (heating cost savings, feedback functionalities, and remote temperature control), that privacy concerns reduce the acceptance of remote functionalities, and that stronger environmental identity reinforces the acceptance of environmentally related attributes (heating cost savings and feedback functionalities). The results we obtained from estimating binary response models of stated past adoption of smart thermostats are generally consistent with those of the DCE.
    Keywords: smart thermostats,smart home devices,choice experiment,mixed logit,innovativeness,privacy
    Date: 2020
  20. By: Samson Afewerki; Asbjørn Karlsen
    Abstract: Just sustainable regional development has become an all-important policy agenda in regions overspecialized in carbon-intensive industries. Just sustainable regional development requires coherent innovation policies and legitimacy to simultaneously address long-term and short-term climate, social and economic goals. We argue that an evolutionary perspective emphasizing institutional legacies (and the concept of institutional layering) is productive for analysing and designing just and sustainable policies. Drawing on a longitudinal case study of two Norwegian oil and gas-dependent regions, we shed light on the multi-scalar policy mixes and underlying political dynamics designed to shape the process. We reveal that, underpinned by the Norwegian tripartite cooperation model, the focus of the multi-scalar policy mixes in the regions has been primarily on the decarburization of the sector, rather than on its active phase-out, along with the development of the renewable energy sector, mainly through technology-push instruments. While supporting business as usual in the short term, this approach may facilitate the growth of the emerging renewable technologies and thereby meet the long-term ‘life-after-oil’ ambitions, reducing the negative impacts of transitions. In light of the urgency for a sustainability transition, we make policy recommendations that can contribute to rapid regional low-carbon transitions while ensuring long-term job security.
    Keywords: Just sustainable transition, tripartite collaboration, coordinated market economy, evolutionary approach, institutional layering
    Date: 2021
  21. By: World Bank
    Keywords: Energy - Oil & Gas
    Date: 2019–02
  22. By: Grzegorz Peszko; Simon Black; Alexandrina Platonova-Oquab; Dirk Heine; Govinda Timilsina
    Keywords: Public Sector Development - Public Sector Expenditure Policy Energy - Energy Policies & Economics Energy - Energy and Environment Environment - Air Quality & Clean Air Environment - Brown Issues and Health Environment - Pollution Management & Control Macroeconomics and Economic Growth - Taxation & Subsidies
    Date: 2019–04
  23. By: Sondes Kahouli (Université de Bretagne Occidentale); Xavier Pautrel (Université d’Angers)
    Abstract: The aim of this paper is to investigate bi-directional spillovers into residential and industrial sectors induced by energy efficiency improvement (EEI) in both the short- and long-term, and the impact of nesting structure as well as the size of elasticities of substitution of production and utility functions on the magnitude and the transitional dynamic of rebound effect. Developing a dynamic general equilibrium model, we demonstrate that residential EEIs spillovers into the industrial sector through the labor supply channel and industrial EEIs spill-overs into the residential sector through the conventional income channel. Numerical simulations calibrated on the U.S. suggest that not taking into account these spillover effects could lead to mis-estimate the rebound effect especially of residential sector EEIs. We also demonstrate how the size and the duration of the rebound effect depend on the value of elasticities of substitution. Especially, the elasticity of substitution between energy and non-energy consumption in household utility and the elasticity of substitution between physical capital and labor in production play a major role. Numerical simulations suggest that alternative sets of value for the elasticities of substitution may give sizable different patterns of rebound effects in both the short- and long-term. In policy terms, our results suggest that energy effciency policies should be implemented simultaneously with rebound effect offsetting policies by considering short- and long-term wide-economy feedbacks. As a consequence, they recall for considering debates about what type of policy pathways is more effective in mitigating the rebound effect.
    Keywords: Energy Efficiency, Rebound Effect, Transitional Dynamics, Residential Energy Consumption, Industrial Energy Consumption
    JEL: D58 Q43
    Date: 2020–12
  24. By: Koh, Sin Yee; Zhao, Yimin; Shin, Hyun Bang
    Abstract: There is an established urban studies literature on the discursive politics of green urbanism, especially with regards to eco-cities and (mega) greenfield developments. However, less attention has been paid to the micropolitics of cross-border transplantation of green urbanism ideas and practices, especially within Asia. This paper examines the case of Forest City, a mainland Chinese developer-led mega greenfield project in the Iskandar Malaysia special economic corridor, to be built on four reclaimed islands. Based on observations, in-depths interviews with local stakeholders and document analysis, we analyse the different ways in which green urbanism has been used by the local state and the developer as an apparatus for speculative city-making. On the one hand, the state seeks to position Iskandar Malaysia as greener than its global competitors through the development of a homegrown "low carbon society" green accreditation system. On the other hand, the (selectively) "green and smart" Forest city consolidates the developer's corporate brand image and marketing aesthetics at the cost of local residents' living environment. Attention to such entangled micropolitics of speculative green urbanism contextualises different stakeholders' rationales and practices and contributes to critical reflections on the entanglement of green urbanism and speculative urbanisation.
    Keywords: green urbanism; speculative urbanization; property development; micropolitcs; Iskandar Malaysia; global China; IC3/100155
    JEL: R14 J01
    Date: 2021–01–01
  25. By: Nicola Comincioli (University of Brescia and Fondazione Eni Enrico Mattei); Verena Hagspiel (Norwegian University of Science and Technology); Peter M. Kort (Tilburg University and University of Antwerp); Francesco Menoncin (University of Brescia); Raffaele Miniaci (University of Brescia); Sergio Vergalli (University of Brescia and Fondazione Eni Enrico Mattei)
    Abstract: The mothballing option has been studied in the literature, but mainly in decision theoretic frameworks. This paper looks at it from a strategic point of view and applies it to an incumbent-entrant framework. In particular, based on the recent strategic interactions between OPEC and the shale oil industry, we conduct a case study where the incumbent OPEC is a exible producer that competes with a representative shale oil firm. Upon entry, the latter produces a fixed amount but it can apply the mothballing option in times of low demand. Our main results are threefold. First, we find that under low demand uncertainty, the mothballing option has a negative e ect on the value of the entrant. Second, a large market share of the entrant will stimulate mothballing, caused by a so-called squeeze strategy of the incumbent. Third, our empirical analysis of the (shale) oil market learns that a higher demand elasticity induces mothballing.
    Keywords: Crude Oil, Shale Oil, Mothballing, OPEC, Output Game
    JEL: L12 L71 Q41
    Date: 2020–11
  26. By: Ralf Martin; John Van Reenen
    Abstract: Ralf Martin and John Van Reenen explain how taxing emissions could help to meet the costs of the crisis and encourage investment in clean innovation.
    Keywords: covid-19,climate change,carbon tax
    Date: 2020–07
  27. By: Akshaya Jha; Stephen A. Karolyi; Nicholas Z. Muller
    Abstract: We present three findings on the effects of environmental regulation on the municipal bond market. First, yields increase (decrease) after a new standard is proposed (finalized), consistent with the resolution of regulatory uncertainty. Second, around annual compliance announcements, yields fall for counties that remain in compliance but increase for newly noncompliant counties. Third, yields are substantially higher for bonds from counties just above the pollution threshold relative to counties just below the threshold. Our findings suggest that increases in regulatory stringency or uncertainty over future environmental policy increase the cost of municipal debt raised to fund critical infrastructure.
    JEL: G12 G14 Q52 Q53 Q58 R51
    Date: 2020–12
  28. By: Fabiano Armellini; Catherine Beaudry; Mario Bourgault; Patrick Cohendet; Laurent Simon; Laurence Solar-Pelletier; Nasrin Sultana; Ekaterina Turkina
    Abstract: L’industrie aérospatiale poursuit sa croissance de façon très marquée avec près de 7,8 milliards de passagers annuels attendus d’ici 2036, par rapport à 4,3 milliards en 2018 (International Air Transport Association, 2016; International Civil Aviation Organization, 2019). Cette industrie, qui avait des perspectives favorables avant la pandémie de COVID-19, faisait et fait toujours face à d’importants défis, tels que le besoin de limiter son impact environnemental et de maîtriser les coûts énergétiques, l’augmentation des exigences de sécurité de même que la difficile anticipation des besoins et des standards de consommation des futures générations de consommateurs. Le virage numérique en cours est porteur d’immenses occasions de répondre à ces défis, non seulement par sa capacité d’accroître la productivité et de mettre en œuvre de nouvelles manières de travailler, mais surtout pour son potentiel considérable d’innovations de rupture. Ce chapitre propose une revue des tendances actuelles de transformation numérique en aérospatiale ainsi qu’un aperçu de la façon dont l’écosystème de l’aérospatiale québécois s’adapte à ce nouveau contexte technologique.
    Keywords: , Aérospatiale numérique,Écosystèmes,Technologies de l'information et de la communication
    Date: 2021–01–07
  29. By: Adamou, Pr. Rabani; Ibrahim, Boubacar; Bonkaney, Abdou Latif; Seyni, Abdoul Aziz; Idrissa, Mamoudou
    Abstract: The Sahel is one of the most vulnerable regions to climate change in the world. Located in the central part, Niger is facing many complex and interconnected challenges which strongly hinder the achievement of the key sustainable development goals (SDGs). The high population growth rate (3.8% per year), weak infrastructure capacity, shortage of essential resources (including water, energy, food) coupled with the adverse impacts of variability and climate change threaten the population and reduce the country’s economic growth efforts. With more than 77% of landmass area receiving less than 150 mm of precipitation yearly, and about 80% of the population depending on rainfed agriculture, water scarcity and dryness constitute serious constraints for the agriculture and livestock sectors. In addition, the unequal distribution of agricultural land and livestock worsens the poverty incidence among households, which is characterized by a GINI coefficient of 0.46 and 0.68 for land and livestock respectively. Access to drinking water remains very poor with high disparities between urban (64%) and rural areas (48%). Water sanitation amounting to only 2% in rural and 38% in urban areas, respectively, also remains a great issue. Elsewhere, several drought and flood episodes have negatively impacted agricultural productivity, causing recurrent famines and livestock losses. The situation is exacerbated by the impacts of land degradation, the advancement of desertification and also by climate change and variability threats, which are projected to increase in magnitude, intensity, duration and number over the country under all climate change scenarios. The country’s high potential of renewable and non-renewable groundwater resources can be used for residential, agricultural and industrial purposes to overcome negative climate change impacts. Regarding the energy sector, the country is currently in an undesirable state, with very limited modern energy services (2% of the population), low electricity access (average rate of 18%, with around 10% in rural areas) and high dependency on traditional biomass (77% of primary energy consumption). However, the country is fortunate to have a tremendous amount of energy resources, including fossil fuels (oil, coal and gas) and renewables (solar, hydropower, and wind), that can be used to overcome many of the observed challenges and thereby contribute significantly in the achievement of various SDGs, including those related to affordable and clean energy, no poverty, and zero hunger. Indeed, in addition to resources for electricity production, Niger has a large surface water potential in the Niger River, with an average discharge of 6000 m3/s and length of about 550 km, which can be mobilized for irrigation to enable food security. Therefore, socioeconomic development requires an integrated approach that brings all the key sectors into a common framework in order to solve the aforementioned challenges. Hence, in key development areas, several development policies and strategies from government, NGOs, and technical and financial partners have been initiated and implemented for inequality and poverty reduction to improve livelihoods in the country.
    Keywords: Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy
    Date: 2021–01–19
  30. By: Joseph S. Shapiro; Reed Walker
    Abstract: This paper describes a novel approach to estimating the marginal cost of air pollution regulation, then applies it to assess whether a large set of existing U.S. air pollution regulations have marginal costs exceeding their marginal benefits. The approach utilizes an important yet underexplored provision of the Clean Air Act requiring new or expanding plants to pay incumbents in the same or neighboring counties to reduce their pollution emissions. These “offset” regulations create several hundred decentralized, local markets for pollution that differ by pollutant and location. We describe conditions under which offset transaction prices can be interpreted as measures of the marginal cost of pollution abatement, and we compare estimates of the marginal benefit of abatement from leading air quality models to offset prices. We find that for most regions and pollutants, the marginal benefits of pollution abatement exceed mean offset prices more than ten-fold. In at least one market, however, estimated marginal benefits are below offset prices. Marginal abatement costs are increasing rapidly in real terms. Notably, our revealed preference estimates of marginal abatement costs differ enormously from typical engineering estimates. Some evidence suggests that using price rather than existing quantity regulation in these markets may increase social welfare.
    JEL: H23 Q52 Q53 R11
    Date: 2020–12
  31. By: Wolfgang Buchholz (University of Regensburg and CESifo); Dirk Rübbelke (Technische Universität Bergakademie Freiberg)
    Abstract: Expectations concerning international climate finance have increased considerably. In par-ticular, provisions for international transfer schemes are an important element in the Paris Agreement. Yet, climate finance is not only seen as a tool to efficiently combat global warm-ing, but also to solve development problems in the recipient countries. Thereby, conflicts between distributive and allocative objectives arise, which threaten overall performance of such transfer schemes. Given the severity of the climate change problem, we raise concerns whether the world can afford climate transfer schemes that do not focus on prevention of (and adaptation to) climate change, but are considered as a vehicle of rent-seeking by many agents. In line with the famous Tinbergen rule we argue that other sustainability problems and issues of global fairness should not be primarily addressed by climate finance but should be mainly tackled by other means. Future designs of international transfer schemes within the framework of the Paris Agree-ment are to be based on experience gained from existing mechanisms. Therefore, we con-sider different existing schemes using a graphical technique first proposed by David Pearce and describe the conflicts between allocative and distributional goals that arise.
    Keywords: Ancillary Benefits, CDM, Climate Finance, Co-benefits, Global Environment Facility, Incremental Cost, International Transfers, Paris Agreement, Premium Prices
    JEL: H41 H87 Q54 Q56
    Date: 2020–11
  32. 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
  33. By: Peter Eisenberger
    Abstract: A Renewable Energy and Materials Economy (REME) is proposed as the solution to the climate change threat. REME mimics nature to produce carbon neutral liquid fuels and chemicals as well as carbon negative materials by using water, CO$_2$ from the atmosphere and renewable energy as inputs. By being in harmony with nature REME has a positive feedback between economic development and climate change protection. In REME the feedback driven accelerated rate of economic growth enables the climate change threat to be addressed in a timely manner. It is also cost-effective protection because it sequesters by monetizing the carbon removed from the air in carbon-based building materials. Thus, addressing the climate change threat is not a cost to the economy but a result of REME driven prosperity.
    Date: 2020–12
  34. By: Anthony D Stephens; David R Walwyn
    Abstract: Sales of new petrol and diesel passenger vehicles may not be permitted in the United Kingdom (UK) post-2030. Should this happen, it is likely that vehicles presently powered by hydrocarbons will be progressively replaced by Battery Electric Vehicles (BEVs). This paper describes the use of mathematical modelling, drawing on real time records of the UK electricity grid, to investigate the likely performance of the grid when supplying power to a fleet of up to 35 million BEVs. The model highlights the importance of understanding how the grid will cope when powering a BEV fleet under conditions similar to those experienced during an extended wind lull during the 3rd week of January 2017. Allowing a two-way flow of electricity between the BEVs and the grid, known as the vehicle-to-grid (V2G) configuration, turns out to be of key importance in minimising the need for additional gas turbine generation or energy storage during wind lulls. This study has shown that with the use of V2G, it should be possible to provide power to about 15 million BEVs with the gas turbine capacity currently available. Without V2G, it is likely that the current capacity of the gas turbines and associated gas infrastructure might be overwhelmed by even a relatively small BEV fleet. Since it is anticipated that 80% of BEV owners will be able to park the vehicles at their residences, widespread V2G will enable both the powering of residences when supply from the grid is constrained and the charging of BEVs when supply is in excess. The model shows that this configuration will maintain a constant load on the grid and avoid the use of either expensive alternative storage or hydrogen obtained by reforming methane. There should be no insuperable problem in providing power to the 20% of BEV owners who do not have parking at their residences; their power could come directly from the grid.
    Date: 2020–12
  35. By: Ashley Langer; Derek Lemoine
    Abstract: An event study generates only a lower bound on the full effect of an event unless researchers know the probability that investors assigned to the event before it occurred. We develop two model-free methods for recovering the market’s priced-in probability of events. These methods require running event studies in financial options to complement the standard event study in stock prices. Validating both approaches, we estimate that the 2016 U.S. election outcome had a 12% chance of occurring. This probability is consistent with contemporary polling, bookmaker, and prediction market estimates. Demonstrating the usefulness of our approaches, we show that many OPEC meetings’ outcomes were well-anticipated. OPEC retained substantial influence on world oil prices even as the U.S. increased oil production.
    JEL: C58 G13 L71 Q43
    Date: 2020–12
  36. By: Amir Lebdioui
    Abstract: Underlying the management of revenues from natural resource extraction is a set of assumptions about how abundant and how valuable these resources are. Nevertheless, existing approaches to measuring the value of extractive resources are seriously flawed. This paper proposes two avenues for improving them. It explains how a multidimensional approach to measuring resource wealth can be used to identify the policy challenges that a country might face as it sets out its strategy for managing extractive revenues.
    Keywords: Natural resources, Valuation, environmental impact, Extractives, Climate change, Environmental impact assessments
    Date: 2021
  37. By: ; Nida Cakir Melek; Charles W. Calomiris
    Abstract: In this paper, we study the usefulness of a large number of traditional determinants and novel text-based variables for in-sample and out-of-sample forecasting of oil spot and futures returns, energy company stock returns, oil price volatility, oil production, and oil inventories. After carefully controlling for small-sample biases, we find compelling evidence of in-sample predictability. Our text measures hold their own against traditional variables for oil forecasting. However, none of this translates to out-of-sample predictability until we data mine our set of predictive variables. Our study highlights that it is difficult to forecast oil market outcomes robustly.
    Keywords: Asset Pricing; Commodity Markets; Energy Forecasting; Model Validation
    JEL: C52 G18 G14 G17 Q47
    Date: 2020–12–23
  38. By: Angela Köppl; Margit Schratzenstaller
    Abstract: In view of the challenges posed by climate change and the increase in climate targets by 2030 in the EU, as well as Austria's goal of achieving climate neutrality by 2040, the question of effective climate policy instruments is gaining in importance. The pricing of CO2, for instance in the form of a carbon tax, and the question of its effects are therefore attracting increasing attention in the academic as well as economic and environmental policy debate. The paper provides a detailed overview of the theoretical and empirical literature on the effects of carbon taxes. The focus is on the most important impact dimensions of carbon taxes: environmental effectiveness, effects on important macroeconomic variables (especially growth and employment), effects on innovation and competitiveness, distributional effects, and public acceptance.
    Keywords: Carbon Tax, Environmental Taxation, Double Dividend Hypothesis, Distributional Effects, Climate Policy, Price-based Instruments
    Date: 2021–01–20
  39. By: Volker, Jamey; Lee, Amy; Handy, Susan
    Abstract: Induced travel is a well-documented effect in which expanding highway capacity increases the average travel speed on the highway, which in turn reduces the perceived “cost” of driving and thereby induces more driving. This increase in vehicle miles traveled (VMT) increases congestion (often back to pre-expansion levels) and air pollutant emissions, reducing or eliminating the purported benefits of the expansion. Yet highway expansion projects continue to be proposed across California, often using congestion relief—and sometimes greenhouse gas reductions—as a justification for adding lanes. These rosy projections about the benefits of highway expansion projects indicate that the induced travel effect is often not fully accounted for in travel demand models or in the projects’ environmental review process. With this problem in mind, researchers at the University of California, Davis developed an online tool to help agencies estimate the VMT induced annually by adding lanes to major roadways in California’s urbanized counties. The researchers also applied the calculator to estimate the vehicle travel induced by five highway expansion projects in California that had gone through environmental review within the past 12 years. They then compared their estimates with the induced travel analysis completed for the projects’ actual environmental impact assessments. This policy brief summarizes findings from that research, along with policy implications. View the NCST Project Webpage
    Keywords: Law, Highway capacity, Traffic congestion, Travel demand, Vehicle miles of travel
    Date: 2021–01–01
  40. By: Scherrer, Aline; Burghard, Uta
    Abstract: [Einleitung] Synthetisches Methan aus erneuerbaren Energien, auch EE-Methan genannt, wird in Deutschland als eine mögliche Lösung im Gesamtkonzept der Energiewende diskutiert. EE-Methan bietet den Vorteil, dass damit fossiles Gas schrittweise ersetzt werden kann, da die gleiche Infrastruktur genutzt werden kann. Diskutierte Anwendungsbereiche für EE-Methan sind (energieintensive) Anwendungen wie Energiespeicher, Wärme, industrielle Anwendungen und Güterverkehr auf der Straße und im Wasser. Für diese Anwendungsbereiche wird aktuell fossiles Erdgas als sogenannte Brückentechnologie genutzt. Allerdings bestehen noch Hürden, die es für die breite Nutzung von EE-Methan zu überwinden gilt, wie ein hoher Energieaufwand für die Herstellung und dementsprechend ein großer Bedarf an erneuerbaren Energien. Insbesondere im Verkehrssektor besteht Nachholbedarf in Sachen Klimaschutz, denn hier gelang es bisher nicht, die CO2-Emissionen entsprechend der Klimaschutzziele zu senken. EE-Methan als Kraftstoff für Lkw und Schiffe kann zur Dekarbonisierung des Güterverkehrs beitragen. Die Umstellung und Nutzung von EE-Methan im Energiesystem und Verkehrssystem ist Gegenstand von Untersuchungen mit technischem und ökonomischem Fokus. Für die Transformation des Energiesystems spielen jedoch auch sozialwissenschaftliche Fragestellungen eine wichtige Rolle, denn der Umstieg auf erneuerbare Energien und Kraftstoffe muss in der Gesellschaft breit mitgetragen werden. Die Innovationsliteratur in der Forschung zu nachhaltigen Transitionen beschäftigt sich daher mit sogenannten sozio-technischen Systemen, um das Zusammenspiel zwischen sozialen und technischen Elementen im System berücksichtigen zu können (Geels et al. 2017). Bisher wurden zu EE-Methan keine sozialwissenschaftlichen Untersuchungen durchgeführt. Diese Forschungslücke soll mit dem vorliegenden Working Paper geschlossen werden. In diesem Papier wird die folgende Forschungsfrage adressiert: Welche Akteurstypen sind derzeit im Innovationssystem rund um EE-Methan (und speziell in den Anwendungen Lkw und Schiff) aktiv und welche Aussagen lässt die derzeitige Konstellation mit Blick auf die Voraussetzungen für eine zukünftige Marktentwicklung zu? Die Forschungsfrage wird für EE-Methan insgesamt sowie für die beiden Anwendungsfälle Lkw und Schiffe betrachtet. Die hier dargestellten Ergebnisse sind im Rahmen des Projekts "MethQuest: Mit erneuerbarem Methan die Energiewende voranbringen", Verbund "MethSys: Wirkung von erneuerbarem Methan im Verkehrs- und Energiesystem ermitteln" entstanden. Dieses Papier richtet sich an politische Entscheidungsträger sowie an Akteure, die mit der Erforschung, Herstellung und Verbreitung von EE-Methan und verwandten Gasen befasst sind, wie beispielsweise Forschungsinstitute, Unternehmen, Kommunen, Genossenschaften, Verbände und Netzwerke.
    Date: 2020
  41. By: Shuhei Nishitateno (School of Policy Studies, Kwansei Gakuin University); Paul J. Burke (Crawford School of Public Policy, Australian National University)
    Abstract: This paper documents the effect of diesel vehicle registration restrictions introduced in Japan in 2001 in reducing suspended particulate matter (SPM) concentrations. The focus is on Aichi and Mie prefectures, home to a number of municipalities that were required to implement these restrictions in 2001. The paper then uses this intervention to estimate the causal effect of air pollution on land values. We obtain estimates of the elasticity of residential land prices with respect to SPM concentration of between –0.4 and –1.0. The revealed willingness to pay for the improvements in air quality induced by the intervention in Aichi and Mie is estimated at about US$7 billion. We also find evidence that net in-migration appears to be a key mechanism via which clean air was capitalized into higher land values. The results are robust to a number of estimation approaches and sample restrictions.
    Date: 2021–01
  42. By: Olayide, Olawale Emmanuel
    Abstract: This review report involves the analysis and synthesis of literatures on climate change, land use, energy, livelihoods and sustainable development in Nigeria. The methodology employed in the review involves searching keywords related to the study objectives on relevant literature search engines and platforms, including Google Scholar and Cross Referencing through triangulation of search results. The articles were screened and validated for inclusion or exclusion based on relevance, content and context. The review process follows the sustainable livelihoods framework. The search returns are complimented with published reports. The report provides information on the current status and guidance on appropriate interventions and innovative investments in Nigeria. Specifically, this report provides a systematic literature review on: 1) situation and trends in energy and land use changes, 2) observed and projected impacts of climate change, 3) technological, socioeconomic and policy actions for sustainable land management and climate change adaptation and mitigation, 4) evaluation of existing major policies and investments, and 5) conclusion and policy implications. Based on the assessment of literature in this study, the key trends and problems include inadequate attention to the agricultural sector over the years, which has caused a major setback in food security and productivity. Climate change has further exacerbated the problem through desertification, drought and flooding across the country. The literature further revealed inadequate energy supply, distribution and low per capita consumption in Nigeria. The use of fuel wood for heating and cooking has significantly contributed to deforestation by worsening land degradation. Resulting implications are that food security is threatened and economic growth is hampered. Land degradation negatively impacts the environment and the rural poor whose livelihoods depend on it. Opportunities in agriculture and renewable energy should be further harnessed and forest and land use policies should be enforced to ensure sustainable livelihoods. In Nigeria, policies and investment plans on land use, energy/electricity and agricultural livelihoods are not coherent and lack consistency in implementation. Thus, lack of strong institutions has resulted in the weak performance witnessed in programme and policy implementation on climate change mitigation, land use, energy and sustainable development in Nigeria. Therefore, there is a need for productive, viable, sustainable policy and programmes that support climate change mitigation, land use, energy and sustainable development in Nigeria. Another important suggestion is the need for provision of renewable energy mix (off-grid) in forms that are easily accessible and affordable by households. Adequate attention should be paid to the provision of bio-energy and the wider bio-economy framework, including the transformation of solid waste, wood waste and agricultural waste into bio-gas and energy. Overall, the investment landscape in Nigeria is improving, and various opportunities for investment in agricultural livelihoods and value chains, renewable energy, carbon trading and green bonds should be harnessed through public-private partnerships.
    Keywords: Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy
    Date: 2021–01–19
  43. By: Mésonnier Jean-Stéphane; Nguyen Benoît
    Abstract: We investigate the real effects of mandatory climate-related disclosure by financial institutions on the funding of carbon-intensive industries. Our impact metric is the amount invested into securities, bonds and stocks, issued by fossil fuel companies. A French law, which came into force in January 2016 in the aftermath of the Paris Agreement on climate change, provides us with a quasi-natural experiment. The new regulation, unique in Europe at that time, requires institutional investors (i.e., insurers, pension funds and asset management firms), but not banks, to report annually on both their climate-related exposure and climate change mitigation policy. Using a unique dataset of security-level portfolio holdings by each institutional sector in each euro area country, we compare the portfolio choices of French institutional investors with those of French banks and all financial institutions located in other EA countries. We find that investors subject to the new disclosure requirements curtailed their financing of fossil energy companies by some 40% compared to investors in the control group.
    Keywords: Bilan carbone, investisseurs institutionnels, énergie fossile, désenvestissement.
    JEL: G11 G15 G23 H55 Q54 Q56
    Date: 2021
  44. By: Choi, Pak-Sing (Washington State University); Espinola-Arredondo, Ana (Washington State University); Munoz, Felix (Washington State University)
    Abstract: This paper considers firms’ incentives to merge under duopoly, where we allow for product differentiation, cost asymmetries, and pollution intensities (green and brown goods). We first analyze mergers in the absence of environmental regulation, showing that mergers induce an output shift towards the lowest cost firm. When emission fees are introduced, however, firms also consider their relative pollution intensities, potentially reverting the above output shift. We show that firms have stronger incentives to merge when goods are more differentiated, costs are more symmetric, and products generate similar environmental damages. However, socially excessive mergers can arise when firms shift output to the more cost-efficient firm after the merger, which may cause more pollution. In contrast, socially insufficient mergers can arise if output shifts after the merger would have reduced pollution.
    Keywords: socially excessive/insufficient mergers; product differentiation; cost asymmetry; pollution intensity; emission fees; antitrust authorities; environmental regulation losses; Policy uncertainty.
    JEL: G34 H23 L41 Q50
    Date: 2020–02–20
  45. By: Thomas Størdal Gundersen; Even Soltvedt Hvinden
    Abstract: We develop a model of oligopolistic competition under imperfect monitoring and dynamic observable demand. Efficient symmetric equilibria feature disciplined cooperative regimes interrupted by rare but severe price wars. The model predicts that the frequency, duration, and supply schedule associated with each regime may persistently deviate from average behavior. We find evidence for the theoretical predictions of our model in historical Organization of Petroleum Exporting Countries (OPEC) output using a Markov-switching Bayesian vector autoregressive model of the global oil market. The evidence suggests that conventional models without regime-switching of oil supply underestimates the linkages between quantities supplied and oil prices.
    Keywords: Regime-switching, OPEC, cartel, price war, crude oil demand and supply
  46. By: Javier L\'opez Prol; Wolf-Peter Schill
    Abstract: The transformation of the electricity sector is a main element of the transition to a decarbonized economy. Conventional generators powered by fossil fuels have to be replaced by variable renewable energy (VRE) sources in combination with electricity storage and other options for providing temporal flexibility. We discuss the market dynamics of increasing VRE penetration and their integration in the electricity system. We describe the merit-order effect (decline of wholesale electricity prices as VRE penetration increases) and the cannibalization effect (decline of VRE value as their penetration increases). We further review the role of electricity storage and other flexibility options for integrating variable renewables, and how storage can contribute to mitigating the two mentioned effects. We also use a stylized open-source model to provide some graphical intuition on this. While relatively high shares of VRE are achievable with moderate amounts of electricity storage, the role of long-term storage increases as the VRE share approaches 100%.
    Date: 2020–12
  47. By: Tim Ritmeester; Hildegard Meyer-Ortmanns
    Abstract: Along with the energy transition, the energy markets change their organization toward more decentralized and self-organized structures, striving for locally optimal profits. These tendencies may endanger the physical grid stability. One realistic option is the exhaustion of reserve energy due to an abuse by arbitrageurs. We map the energy market to different versions of a minority game and determine the expected amount of arbitrage as well as its fluctuations as a function of the model parameters. Of particular interest are the impact of heterogeneous contributions of arbitrageurs, the interplay between external stochastic events and nonlinear price functions of reserve power, and the effect of risk aversion due to suspected penalties. As conclusions from our results we propose economic and statutory measures to counteract a detrimental effect of arbitrage.
    Date: 2020–12
  48. By: Kumar Sedai, A.; Jamasb, T.; Nepal, R.; Miller, R.
    Abstract: Uneven electrication can be a source of welfare disparity. Given the recent progress of electrication in India, we analyze the differences in access and reliability of electricity, and its impact on household welfare for marginalized and dominant social groups by caste and religion. We carry out longitudinal analysis from a national survey, 2005-2012, using OLS, fixed effects, and panel instrumental variable regressions. Our analysis shows that marginalized groups (Hindu Schedule Caste/Schedule Tribe and Muslims) had higher likelihood of electricity access compared to the dominant groups (Hindu forward castes and Other Backward Caste). In terms of electricity reliability, marginalized groups lost less electricity hours in a day as compared to dominant groups. Results showed that electrification enabled marginalized households to increase their consumption, assets and move out of poverty; the effects were more pronounced in rural areas. The findings are robust to alternative ways of measuring consumption, and use of more recent data set, 2015-2018. We posit that electri_cation improved the livelihoods of marginalized groups. However, it did not reduce absolute disparities among social groups.
    Keywords: Electricity access, Electricity reliability, Instrumental variables, Marginalized groups, Welfare
    JEL: D12 D31 E12 I32
    Date: 2101–01–19
  49. By: Nicolina Angelou; Sanjukta Roy
    Keywords: Energy - Electric Power Energy - Energy Conservation & Efficiency Energy - Energy Demand Energy - Energy Policies & Economics Gender - Gender and Development Gender - Gender and Energy
    Date: 2019–04
  50. By: Ben Henderson (OECD); Stefan Frank (International Institute for Applied Systems Analysis); Petr Havlik (International Institute for Applied Systems Analysis); Hugo Valin (International Institute for Applied Systems Analysis)
    Abstract: This study uses GLOBIOM ‒ the most detailed global economic model of agriculture, land use and greenhouse gas (GHG) emissions ‒ to assess the effectiveness of different policies in cutting net emissions from the Agriculture, Forestry and Other Land Use (AFOLU) sector, with a view to helping limit long-term global temperature increases to 1.5°C and 2°C. Trade-offs between emission reductions and impacts on food producers, consumers and government budgets are also evaluated for each policy package. A full complement of policy options is deployed globally across AFOLU, comprising emission taxes for emitting AFOLU activities and subsidies rewarding carbon sequestration. Using a carbon price consistent with the 2°C target (1.5°C target), this is projected to mitigate 8 GtCO2 eq/yr (12 GtCO2 eq/yr) in 2050, representing 89% (129%) reduction in net AFOLU emissions, and 12% (21%) of total anthropogenic GHG emissions. Nearly two-thirds of the net emission reductions are from the Land Use, Land-Use Change and Forestry (LULUCF) component of AFOLU, mostly from reduced deforestation. A global carbon tax on AFOLU is found to be twice as effective in lowering emissions as an equivalently priced emission abatement subsidy because the latter keeps high emitting producers in business. However, a tax has trade-offs in terms of lower agricultural production and food consumption, which a subsidy avoids. A shift to lower emission diets by consumers has a much smaller impact on reducing agricultural emissions than any of the policy packages involving taxes on emissions.
    Keywords: Abatement subsidy, GHG emission tax, Paris Agreement
    JEL: C61 F18 Q11 Q18 Q54 Q56 Q58
    Date: 2021–01–28
  51. By: Admassie, Assefa; Abebaw, Degnet
    Abstract: Ethiopia is the second most populous country in Sub-Saharan Africa with a population of more than 110 million. With over 10 percent growth rate, the Ethiopian economy has been one of the fastest growing economies in the world over the last one and half decades. By any measure agriculture is the dominant economic sector in the country accounting for a sizeable portion of the GDP growth, generating most of the export earnings and employing most of the labour force. The country has diverse agro-ecological conditions which are suitable for growing both temperate and tropical food and industrial crops. This study has tried to review the trends in environment conditions such as energy use, land cover and land use changes as well as the impact of climate change and the policy responses of the Government of Ethiopia. The review clearly shows that Ethiopia is still a poor country with more than one fifth of the population living below the national poverty line. Food insecurity continues to be a big challenge for millions of Ethiopians. Despite being the dominant economic sector, agricultural production is characterized as a low-input-low productivity sector. Land degradation is a very serious problem in Ethiopia due to the fact that many parts of the Ethiopian highlands are mountainous and rugged. Even though Ethiopia has huge potential for generating renewable energy, the majority of the Ethiopian population still relies on biomass energy sources such as wood, animal dung and crop residues. These environmental challenges are also exacerbated due to the effect of climate change. To mitigate the impact of land degradation, deforestation, and climate change, the Government of Ethiopia has formulated and implemented several policies. The Agricultural Growth Program (AGP), the Productive Safety Net Program (PSNP), the Sustainable Land Management Program (SLM) and the Climate Resilient Green Economy (CRGE) strategy are the major programs being implemented to address these environmental challenges. Indeed, these interventions have made noticeable contributions to curb the challenges.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy, Resource /Energy Economics and Policy
    Date: 2021–01–19
  52. By: Marc Bohmann (University of Technology Sydney); Vinay Patel (University of Technology Sydney)
    Abstract: The authors examine the behavior of US crude oil and natural gas futures options implied volatility–based measures as proxies for information leakage around news announcements between 2007 and 2017. In the five days preceding news releases, they find abnormal changes in the levels of futures options implied volatility spreads and skew. In addition, they report a statistically significant relationship between abnormal announcement date returns and abnormal changes in pre-announcement implied volatility spreads/skew. Their findings indicate that at least some investors are informed about the details of future crude oil and natural gas news.
    Keywords: options; derivatives
    Date: 2020–01–01
  53. By: Rickels, Wilfried; Quaas, Martin F.; Ricke, Katharine; Quaas, Johannes; Moreno-Cruz, Juan; Smulders, Sjak
    Abstract: Increasing attention is being given to the option of engineering the climate via Solar Radiation Management (SRM) as a potential component in future climate policies. We set up a quantitative model to analyze efficient levels of SRM deployment against the climatic and economic background conditions projected by the various Shared Socioeconomic Pathways (SSPs) baseline scenarios for the year 2050. The model combines three features of the data: i) SRM deployment is regionally uneven in the way it affects grid-cell temperature and precipitation, ii) temperature and precipitation affect Gross Value Added (GVA) at the grid-cell level and the effect for both takes the form of an inverted U-shape relationship, implying that optimal temperature and precipitation levels with respect to output do exist, and iii) different assumptions about economic growth and its distribution over regions, as projected by the SSPs, increase the relative share of global GVA for currently rather poor countries with high average temperatures. We find that in global terms, economically efficient levels of SRM are affected more by region-specific economic growth projections than by regional climate-change impacts. Globally, the economically efficient SRM level is proportional to the (global) GVA-weighted mean temperature increase, which varies considerably according to the various growth projections (for equal climatic background conditions). Achieving the optimal temperature in each scenario is constrained by the influence of SRM on precipitation.
    Keywords: Climate engineering,Solar radiation management,Governance,Climate-change winners and losers
    JEL: Q54 O44
    Date: 2020
  54. By: Zolfaghari, Mehdi; Jariani, Farzaneh
    Abstract: The water, energy and food nexus approach was studied and assessed in this research in a period namely between 2009-2018 in the Middle East and North Africa countries and accordingly the results show that the nexus between water, food and energy have not been established in the Middle East and North Africa Region (MENA) as the general perspective of sustainable development and providing the residents of the foregoing region with the food and generally speaking, the important variables do not give any logical and meaningful effect to the behavioural equations of water, energy and food in this region. Therefore, the population growth especially the urbanization one, the economic prosperity and the requirements thereof may cause a pressure increase on the water, energy, food, land and other natural resources and eventually such increase will bug and disrupt the food supply for the MENA region in the years to come and it can also lead to the aggravation and intensification of conflicts, tensions and wars and bellicosity. The most significant solution for establishing the balance and equilibrium among the population growth, urbanization growth and food supply and also the other effective factors in the MENA region is the establishment and assessment of the water, energy and food nexus and the integral and drastic management and then performing the appropriate strategies that such matter will never be possible except using the social capital (Civil participation and the participation of the entire social processes) and the economic quality (Equipping the economy for sustainable wealth creation and perfect employment) through the decentralized professional working groups which include the private sector applying the financial sponsorship and legal supports of the then government.
    Keywords: WEF Nexus, Water-Energy-Food Nexus, GEE, Middle East, North Africa
    JEL: O53 O55 Q01 Q18 Q25 Q4
    Date: 2020–12–08
  55. By: Faye, Amy; Dièye, Mohamadou; Diakhaté, Pape Bilal; Bèye, Assane; Sall, Moussa; Diop, Mbaye
    Abstract: Located in West Africa, Senegal is classified as a least-developed country that has historically had political stability and slow economic growth compared to the rest of Sub-Saharan Africa (SSA). However, from 2012 onward, a new government has adopted new policies (infrastructure investments, liberalization of the groundnut sector and opening of the energy sector) to enhance economic growth and governance. Senegal thus experienced significant improvements in the period from 2012 to 2015. Future economic growth in Senegal can be significantly shaped by the energy sector regarding the recent oil and gas discoveries if the common resource curse can be avoided. The country is characterized by a poverty rate of 38 percent and fairly stable food security, with only 7.2 percent of the population being food insecure. However, some localized pockets of acute food needs remain. This is in part linked to agricultural production (the main source of income and labor), which depends highly on climatic hazards. Moreover, production resources such as land are highly vulnerable to climatic and anthropogenic factors. The country has a good access rate to electricity and safe water. However, access to electricity is unequal, with rural lagging behind urban areas. The country thus faces many challenges that threaten its economic growth: climate change and ensuring the accessibility and affordability of energy and land, which are key inputs to the main sectors of the economy such as agriculture. This report aims at investigating these interlinked challenges through a critical literature review. Results show that concerning land, its use and cover have hardly evolved over the past, except for agricultural land, which has significantly evolved from 1975 to 2013. However, the land has degraded a lot in the past several decades with up to 63-67 percent of the arable land being subject to land degradation due to climate hazards and its uses (e.g. population growth, Agro-sylvo-pastoral practices, wind and water erosion, salinization, bush fires...). Land degradation has multiple consequences, as it impacts livelihoods by limiting the availability of vital ecosystem services, increases the risk of poverty and translates into economic losses. Land degradation is estimated to cost 9 percent of the GDP annually (996 million USD). Concerning climate change, Senegal’s climate is of the Sudano-Sahelian type, marked by the alternation of a rainy season and a dry season, whose duration varies according to the region. Rainfall and its characteristics (onset and duration) and air temperature are two factors that have changed significantly since the early 1950s and 1970s. Decreased rainfall, delayed onset of rains, reduced duration of wintering and higher temperatures have adversely affected agricultural production systems and have put some risks on food security, health and livelihoods. Projections in 2035 and 2050 will accentuate the negative impacts already observed. In the face of such challenges, several strategies have been undertaken at different levels (household, community, policy, research, etc.) to reduce the negative effects of climate shocks and land degradations. At the household level, strategies have mostly consisted of diversifying revenue sources through remittances and non-agricultural activities. At the community level, organizational dynamics have been strengthened and enabled to reduce the vulnerability of women and children, to increase access to climate information, and so on. Finally, policy responses have mainly consisted of Senegal’s efforts to develop climate change adaptation and mitigation plans and strategies to protect the vulnerable key sectors from climate change and to contribute to emission reduction at the global level. The evaluation of key policies, the Intended Nationally Determined Contribution for climate governance, the PRACAS (for agriculture and food security) and land-use policies highlights the main factors for success and failure and identifies key challenges that the government of Senegal needs to pay close attention to in order to ensure greater policy design and implementation success in the future. The main challenges are related to governance, funding and monitoring and evaluation. In terms of governance, it is important to ensure the participatory design and implementation of the policies to foster stakeholders' ownership and thus facilitate their implication. As for funding, the key is to avoid building policy objectives based on unsecured funding by making realistic plans based on already secured funding (if possible, from the national budget). Finally, in terms of monitoring and evaluation, it is key to ensure the sustained availability of good-quality statistical data to allow better targeting of areas in which to intervene, better allocation of financial resources and better assessment of gaps, progress, and impact.
    Keywords: Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy
    Date: 2021–01–19
  56. By: Minh Ha-Duong (CIRED - Centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique, VIET - Vietnam Initiative for Energy Transition)
    Abstract: In 2016, Vietnam planned to build a fleet of new coal-fired power plants, expanding capacity to 54.5 GW in 2030, from 13.1 GW in 2015. Three years later, the risk of stranded assets not only made this plan sub-optimal, it also made it infeasible because investors are looking elsewhere.
    Date: 2020–01

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