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on Energy Economics |
| By: | Arik Levinson; Lutz Sager |
| Abstract: | Regulators attest that tightened energy efficiency standards save consumers money. Efficient light bulbs, appliances, and vehicles cost more upfront but reduce energy expenses by more than enough to compensate. We use survey data on American cars and their drivers to examine whether individual drivers have indeed underinvested in fuel economy, given the gas prices they face and the miles they drive. We find that may be true, but only on average. Some drivers could likely have saved money by spending more upfront for efficient cars. But many others could have saved money purchasing less expensive, less fuel-efficient cars. In fact we find little correlation between individual drivers’ annual fuel expenditures and their fuel economy choices: a driver’s income, sex, age, and education are far more closely associated with their vehicle’s fuel economy. We can rule out several explanations for the disconnect. Rich car purchasers do not seem to consider fuel expenses any more than poorer ones, undermining arguments that borrowing constraints prevent low-income consumers from investing in fuel efficiency. And the disconnect between fuel expenses and vehicle choice holds whether we examine anticipated or realized mileage, ruling out mistaken expectations about future driving as an explanation. |
| JEL: | Q48 Q58 R48 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28219&r=all |
| By: | Prateek Bansal; Rajeev Ranjan Kumar; Alok Raj; Subodh Dubey; Daniel J. Graham |
| Abstract: | Consumer preference elicitation is critical to devise effective policies for the diffusion of electric vehicles in India. For this purpose, we use stated preferences of over 1000 Indian consumers and present the first estimates of the additional purchase price that Indian consumers are willing to pay to improve the electric vehicle attributes (e.g., driving range). We adopt a hybrid choice modelling framework to simultaneously model the willingness to pay and the effect of consumers' latent attitudes (e.g., hedonic and symbolic values) on their likelihood to adopt electric vehicles. We also account for reference dependence by considering a conventional vehicle as the reference alternative and illustrate that the resulting willingness to pay estimates are more realistic. Based on our results, Indian consumers are willing to pay additional USD 10-34 in purchase price to reduce the fast charging time by 1 minute, USD 7-40 to add a kilometre to the driving range of electric vehicle at 200 kilometres, and USD 104-692 to save USD 1 per 100 kilometres in operating cost. These estimates and the effect of attitudes on the likelihood to adopt electric vehicles provide insights about electric vehicle design, marketing strategies, and pro-electric-vehicle policies (e.g., specialised lanes and reserved parking for electric vehicles) to expedite the adoption of electric vehicles in India. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.08008&r=all |
| By: | Karen Thierfelder (United States Naval Academy); Scott McDonald (Humboldt University); Sherman Robinson (Peterson Institute for International Economics) |
| Abstract: | The purpose of this paper is to analyze the effect energy taxes have on CO2 emissions. The paper describes a short run response to current demands for mitigation, working through the price system to change behavior and using instruments currently available to governments. Other policy options such as changes to technology or the establishment of a market for carbon permits (i.e. cap and trade schemes) will take time to develop. This paper shows the implications of using either a sales tax on energy commodities or a tax on carbon to achieve mitigation objectives. A tax on carbon is more efficient than a tax on fossil fuels and requires less adjustment in terms of real GDP. The analysis also addresses the role of developing countries, finding that they can be exempt from tax changes with little effect on global CO2 emissions. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:usn:usnawp:66&r=all |
| By: | Fateh Belaïd; Christophe Rault; Camille Massié |
| Abstract: | This paper develops a pseudo-panel approach to examine household electricity demand behaviour through the household life cycle and its response to income variations to help strengthen the energy policy-making process. Our empirical methodology is based on three rich independent microdata surveys (the National Housing Surveys), which are representative of the French housing sector. The resulted sample covers the 2006-2016 period. Using within estimations, this paper finds striking evidence that the income elasticity of French residential electricity demand is 0.22, averaged over our four cohorts of generations. In light of other works, our estimate stands in the lower range. The empirical results also show that residential electricity consumption follows an inverted U-shaped distribution as a function of the age of the household's head. Most notably, it appears that households at the mid-point of their life cycle are relatively the largest consumers of electricity. This outcome has important implications for policy-making. Any public policy aimed at reducing household energy consumption should consider this differentiation in consumption according to the position of households over the life cycle, and therefore target as priority households at the highest level of consumption. |
| Keywords: | residential electricity demand, pseudo-panel, energy policy, France |
| JEL: | C23 D12 Q21 Q41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8814&r=all |
| By: | Michele Catalano (Prometeia); Lorenzo Forni (Prometeia and University of Padova); Emilia Pezzolla (Prometeia) |
| Abstract: | How much the transition out of greenhouse gas emissions will cost to the economy? Current available estimates differ widely. This reflects different methodologies and assumptions adopted by different studies, combined with the inherent uncertainty related to forecasting future greenhouse gas emissions and temperature increases. This paper takes a different approach. In addition to replicating business as usual scenarios, we assume as given widely-used mitigation scenarios for future carbon emissions (as the Paris agreement path for example), and then back out the combinations of fiscal tools (especially carbon price measures and tax incentives for green investments) that can minimize the transition costs. To this end the paper extends the work done in Catalano et al. [2019] by using a global overlapping generations model in the spirit of Kotlikoff et al. [2019] combined with a climate module. The results show that the estimated economic costs of the carbon transition vary significantly depending on the fiscal tools used to reduce greenhouse gas emissions. Due to adjustment costs in the production structure, the world economy would minimize the potential transition costs if sustained by debt financed investment policies. |
| Keywords: | Climate, Global Warming, Government Policy, International Economics, Fiscal Policies and Behavior of Economic Agents |
| JEL: | Q54 Q58 F0 H2 H3 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0265&r=all |
| By: | Micheli, Leonardo; Fernandez, Eduardo F.; Aguilera, Jorge T.; Almonacid, Florencia |
| Abstract: | The present study analyzes the soiling losses of a 1 MW system installed in the South of Spain. Both the Levelized Cost of Energy and the Net Present Value are used to compare the convenience of different mitigation strategies. It is found that also PV installations located in moderate regions, where the yearly soiling losses are limited to 3%, can suffer of a severe seasonal soiling, with power drops higher than 20%. In these conditions, an optimized cleaning schedule can be considerably beneficial from an economic perspective. For the given site, an optimal cleaning schedule generates a raise in profits up to 3.6% if one yearly cleaning is performed within a ± 31-day window in summer. The convenience of one and multiple cleaning strategies is investigated by considering variable electricity prices and cleaning costs. In addition, the impact of the module efficiency on the cleaning strategy is analyzed. It is found that an optimized cleaning schedule can enhance the benefits of installing high efficiency modules, as it increases the amount of energy recovered through each cleaning and, therefore, the profits. |
| Keywords: | Photovoltaic; Soiling; Performance Ratio; Cleaning; Economics |
| JEL: | Q4 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104104&r=all |
| By: | Dion Bongaerts; Dirk Schoenmaker |
| Abstract: | The market for green bonds is growing rapidly and has been boosted by the European Commission’s plan to raise through green bonds 30 percent of the up to €750 billion that will be borrowed under the Next Generation EU coronavirus economic recovery programme. But while green bonds can reduce the financing costs of green projects and technologies, their current design means they fall short of fulfilling their full potential. Issuing green... |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polcon:39972&r=all |
| By: | Enrico Bergamini; Georg Zachmann |
| Abstract: | This research identifies existing and potential specialisation in green technologies in European Union regions, and proposes an approach to identify policies that can help to realise this potential. Using the Organisation for Economic Cooperation and Development’s REGPAT database for regionalised patent data, we estimate the potential advantage European NUTS2 regions could have in 14 green technologies. We use network proximity between technologies and between regions to understand technological/regional clusters, and... |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:bre:wpaper:40007&r=all |
| By: | Jonathan Colmer; John Voorheis |
| Abstract: | Evidence shows that environmental quality shapes human capital at birth with long-run effects on health and welfare. Do these effects, in turn, affect the economic opportunities of future generations? Using newly linked survey and administrative data, providing more than 150 million parent-child links, we show that regulation-induced improvements in air quality that an individual experienced in the womb increase the likelihood that their children, the second generation, attend college 40-50 years later. Intergenerational transmission appears to arise from greater parental resources and investments, rather than heritable, biological channels. Our findings suggest that within-generation estimates of marginal damages substantially underestimate the total welfare effects of improving environmental quality and point to the empirical relevance of environmental quality as a contributor to economic opportunity in the United States |
| Keywords: | air pollution, environmental regulation, social mobility, human capital |
| JEL: | H23 Q53 J00 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1733&r=all |
| By: | Julia Grübler (The Vienna Institute for International Economic Studies, wiiw); Roman Stöllinger (The Vienna Institute for International Economic Studies, wiiw); Gabriele Tondl |
| Abstract: | The effects of international trade on the planet’s climate and environment are manifold and complex. This makes assessment of the impact of free trade agreements (FTAs) a delicate matter. This study provides an overview of the development of sustainability chapters in FTAs and discusses their potential and limitations. It highlights particular industry-specific environmental issues related to EU trade, especially with developing countries, and presents complementary policy options. In this vein, it zooms in on the EU-Mercosur FTA, for which a political agreement was reached in June 2019. It contrasts the estimated cost of increased CO2 emissions attributable to intensified trade relations, as one element of the ‘pains from trade’, with the estimated ‘gains from trade’ arising from lower prices for consumers. The analysis suggests that the benefits outweigh the costs; yet, the result is sensitive to assumed prices for pollutants. Furthermore, the effectiveness of the incorporated sustainability chapter is limited by its enforceability. The latter provokes a discussion on the modernisation of the framework of the World Trade Organization, which currently does not allow environmental challenges to be tackled effectively. |
| Keywords: | free trade agreements, trade policy, environment, sustainability, WTO, Mercosur |
| JEL: | F13 F14 F18 F64 O13 Q56 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:451&r=all |
| By: | Pincheira, Pablo; Jarsun, Nabil |
| Abstract: | This draft is a summary of the paper entitled: Forecasting Fuel Prices with the Chilean Exchange Rate. In that paper we show that the Chilean exchange rate has the ability to predict the returns of oil prices and of three additional oil-related products: gasoline, propane and heating oil. The theoretical underpinnings of our empirical findings rely on the present-value theory for exchange rate determination and on the strong co-movement displayed by some commodity prices. The Chilean economy is heavily influenced by one particular commodity: copper, which represents nearly 50% of total national exports and attracts a similar share in terms of Foreign Direct Investment. As a consequence, the floating Chilean exchange rate is importantly affected by fluctuations in the copper price. As oil-related products display an important co-movement with base metal prices, it is reasonable to expect evidence of Granger causality from the Chilean peso to these oil-related products. We find substantial evidence of predictability both in-sample and out-of-sample. Our paper is part of a growing literature that in the recent years has explored the linkages between commodity prices and commodity currencies. |
| Keywords: | Exchange rates, energy, oil, gasoline, commodity prices, predictability, time-series |
| JEL: | C01 C02 C1 C12 C13 C2 C22 C3 C32 C4 C5 C51 C52 C53 C58 E31 E37 E58 F3 F31 F37 F4 F47 G12 G15 G17 |
| Date: | 2020–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105056&r=all |
| By: | Samya Beidas-Strom; Marco Lorusso |
| Abstract: | We build and estimate open economy two-bloc DSGE models to study the transmission and impact of shocks in Russia, Saudi Arabia and the United Kingdom. After accounting for country-specific fiscal and monetary sectors, we estimate their key policy and structural parameters. Our findings suggest that not only has output responded differently to shocks due to differing levels of diversification and structural and policy settings, but also the responses to fiscal consolidation differ: Russia would benefit from a smaller state foot-print, while in Saudi Arabia, unless this is accompanied by structural reforms that remove rigidities, output would fall. We also find that lower oil prices need not be bad news given more oil-intensive production structures. However, lower oil prices have hurt these oil producers as their public finances depend heavily on oil, among other factors. Productivity gains accompanied by ambitious structural reforms, along with fiscal and monetary reforms could support these economies to achieve better outcomes when oil prices fall, including via diversifying exports. |
| Keywords: | Oil prices;Labor;Oil;Consumption;Oil, gas and mining taxes;WP,exchange rate,monetary policy,trade balance,labour market |
| Date: | 2019–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/214&r=all |
| By: | Guy Meunier; Jean-Pierre Ponssard (X - École polytechnique) |
| Abstract: | Résumé : La filière hydrogène est une alternative possible au moteur thermique, aux côtés des véhicules à batterie, dans la perspective de réduire les émissions de gaz à effets de serre associées aux activités de transport. Les coûts associés aux véhicules à hydrogène sont actuellement élevés, même au regard des émissions de gaz à effet de serre et de polluants évitées par leur utilisation. Une diminution des coûts associés aux véhicules à hydrogène, déterminant de leur désirabilité sociale et environnementale, se heurte pourtant à des difficultés de deux ordres. D'une part un coût de recharge élevé, où le problème de la coordination entre développement de la flotte de véhicules et infrastructure de recharge est crucial. D'autre part, des prix d'achat élevés, susceptibles de diminuer grâce à des quantités suffisantes générant des effets d'expérience.Cette note argumente que chacun de ces deux handicaps appellent une politique publique structurée à un niveau spécifique : un niveau local pour la coordination entre acteurs, et un niveau européen pour générer des volumes suffisants. L'exemple des bus urbains à hydrogène offre une illustration parlante de ces problématiques. Points clés : La montée en puissance de la filière hydrogène est encouragée par diverses initiatives en France. Ces initiatives reposent sur la notion d'écosystème régional : autour d'une ville, d'une communauté de collectivités locales, voire d'un département ou d'une région. L'exemple des bus à hydrogène montre que les coûts d'abattements induits par cette technologie sont encore trop élevés. Le problème réside à la fois dans le prix des véhicules et dans la fourniture du combustible. Faire diminuer les coûts associés à la fourniture du combustible nécessite la résolution de problèmes de coordination liés aux effets de réseau, ce qui appelle une réponse au niveau local. Atteindre des prix d'achats de véhicules suffisamment bas pour être compétitifs nécessite une approche européenne, qui seule permet d'atteindre un niveau significatif de volumes. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03019417&r=all |
| By: | Hiroaki Ino (Kwansei Gakuin University); Norimichi Matsueda (Kwansei Gakuin University); Toshihiro Matsumura (The University of Tokyo) |
| Abstract: | This study investigates how the introduction of a competitor affects the behavior of an incumbent electricity producer who is a former local monopolist. We especially focus on its implications for the incumbent's capacity choice between two different electric power sources: one technology with a relatively high production cost (peak-load technology), which is represented by gas-fired power generation, and the other with a relatively high capacity-building cost (base-load technology), which is represented by nuclear power generation. We assume that the entrant does not have access to the latter technology and also that demand fluctuates over time, as is typically the case with an electricity market. Surprisingly, the introduction of a competitor increases the capacity of nuclear power generation if and only if the nuclear technology is sufficiently inefficient. This result also implies that the introduction of a competitor competition tends to decrease the nuclear capacity when the level of carbon tax, which tends to raise the relative production cost of gas-fired power generation, is sufficiently high. |
| Keywords: | ;technology choice, carbon-free energy, carbon tax, deregulation, demand uncertainty, capacity commitment, imperfect competition |
| JEL: | Q41 Q42 L13 L43 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:kgu:wpaper:223&r=all |
| By: | Inma Martínez-Zarzoso (University of Goettingen and University Jaume); Shampa Roy-Mukherjee (University of East London); Finn-Ole Semrau (Kiel Wold Institute); Anca M. Voicu (Rollings College) |
| Abstract: | We investigate the relationship between energy intensity and firms’ internationalization strategies by using data for Indian firms over the period 1987 to 2016 to estimate a panel data model that considers firm heterogeneity. Energy intensity is explained by the extensive and intensive margins of exports, estimated total factor productivity, foreign ownership, size and innovation activities. The main results indicate that exporters are more energy efficient than non-exporters, and that there is heterogeneity between industries. In particular, more energy-intensive industries present a higher reduction in energy intensity for exporters in comparison to non-exporters. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2021.1&r=all |
| By: | Takahiro Yamada (The World Bank); Hiroyuki Yamada (Faculty of Economics, Keio University); Muthukumara Mani (The World Bank) |
| Abstract: | This study investigates the causal effects of long-term PM2.5 exposure on COVID-19 deaths, fatality rates and cases in India by using an instrumental variables approach based on thermal inversion episodes. The estimation results indicate that a 1% increase in long-term exposure to PM2.5 leads to an increase in COVID-19 deaths by 5.7 percentage points and an increase in the COVID-19 fatality rate by 0.027 percentage points, but this exposure is not necessarily correlated with COVID-19 cases. People with underlying health conditions such as respiratory illness caused by exposure to air pollution might have a higher risk of death following SARS-CoV-2 infection. This finding might also apply to other countries where high levels of air pollution are a critical issue in terms of development and public health. |
| Keywords: | COVID-19, Ambient Air Pollution, Instrumental Variables Approach, Thermal Inversion, India |
| JEL: | Q53 I15 O13 |
| Date: | 2021–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:keo:dpaper:2021-002&r=all |
| By: | Szilard Benk; Max Gillman |
| Abstract: | Real oil prices surged from 2009 through 2014, comparable to the 1970’s oil shock period. Standard explanations based on monopoly markup fall short since inflation remained low after 2009. This paper contributes strong evidence of Granger (1969) predictability of nominal factors to oil prices, using one adjustment to monetary aggregates. This adjustment is the subtraction from the monetary aggregates of the 2008-2009 Federal Reserve borrowing of reserves from other Central Banks (Swaps), made after US reserves turned negative. This adjustment is key in that Granger predictability from standard monetary aggregates is found only with the Swaps subtracted. |
| Keywords: | Oil prices;Inflation;Gold prices;Monetary base;Consumer price indexes;WP,sub,M1 Divis-SWP,excess reserves |
| Date: | 2019–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/237&r=all |
| By: | Boris C. Boonstra; Cornelis W. Oosterlee |
| Abstract: | Storage of electricity has become increasingly important, due to the gradual replacement of fossil fuels by more variable and uncertain renewable energy sources. In this paper, we provide details on how to mathematically formalize a corresponding electricity storage contract, taking into account the physical limitations of a storage facility and the operational constraints of the electricity grid. We give details of a valuation technique to price these contracts, where the electricity prices follow a structural model based on a stochastic polynomial process. In particular, we show that the Fourier-based COS method can be used to price the contracts accurately and efficiently. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.02917&r=all |
| By: | Marco Agostini (DII, University of Padova); Marina Bertolini (DSEA and CRIEP, University of Padova); Massimiliano Coppo (DII, University of Padova and Interdepartmental Centre for Energy Economics and Technology "Giorgio Levi-Cases", University of Padova); Fulvio Fontini (DSEA, University of Padova and Interdepartmental Centre for Energy Economics and Technology "Giorgio Levi-Cases", University of Padova) |
| Abstract: | The paper considers different market settings for the participation to the balancing services market of small scale variable renewable energy sources connected at the distribution level to the grid. By mixing an economical and a technical approach, it evaluates the efficiency of participation to the market under two opposite settings: a commercial scheme and a technical one. In the former, the supply of the small scale variable distributed renewable energy sources are grouped on a purely commercial basis; in the latter, the DSO is responsible of the imbalances that may possibly arise in the distribution grid. By considering a reference distribution network and designing scenarios for the forecast uncertainty about supply and demand of power profiles, the impact of different market frameworks is assessed. The upward and downward balancing services provided by variable distributed energy resources and controllable units connected to the high voltage grid are both considered. Moreover, the power supply curtailments, that endogenously arise due to the violation of technical constraints of the distribution grid and the random nature of energy supply by renewables, are addressed, for each specific market model. It is shown that the social costs of balancing energy provision can be higher or lower according to the market framework and the specific scenario, depending on the relative share of the different types of distributed renewable energy sources as well as on the amount of reserved energy for balancing services and their cost. |
| Keywords: | small scale variable distributed renewable energy sources, distribution network, market models, aggregator, network externalities and efficiency |
| Date: | 2020–09 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0263&r=all |
| By: | Guy Meunier; Jean-Pierre Ponssard (X - École polytechnique) |
| Abstract: | Summary: Hydrogen is a possible alternative to the internal combustion engine, alongside battery-powered vehicles, in the context of reducing greenhouse gas emissions associated with transport activities. The costs associated with hydrogen vehicles are currently high, even when considering the greenhouse gas emissions and other pollutants avoided by their use. Efforts to reduce these costs, which will determine the social and environmental desirability of hydrogen vehicles, face two challenges : the high cost of refueling, linked to the crucial problem of coordination between development of the vehicle fleet and refueling infrastructure; and high purchase prices, which may decrease when sufficient quantities generate experience effects. This policy brief argues that each of these two handicaps calls for a specific policy design : at a local level for coordination between actors, and at a European level to generate sufficient volumes. The example of hydrogen-powered urban buses offers a telling illustration of these issues.. Key points: The growing importance of the hydrogen sector has been encouraged by various initiatives in France. These initiatives are based on the idea of a regional ecosystem : around a city, a network of local communities, or even a department or a region. The example of hydrogen buses shows that the abatement costs induced by this technology are still too high. The problem lies both in the price of the vehicles and the supply of fuel. Reducing the costs associated with the supply of fuel requires the resolution of coordination problems linked to network effects, which calls for a response at the local level. Achieving vehicle purchase prices low enough to be competitive requires a European approach, which alone makes it possible to reach significant volumes. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03019425&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the Clean Development Mechanism |
| Keywords: | climate change, emission reduction credits, undergraduate, video |
| JEL: | Q54 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2107&r=all |
| By: | Matthew E. Kahn; Kamiar Mohaddes; Ryan N. C. Ng; M. Hashem Pesaran; Mehdi Raissi; Jui-Chung Yang |
| Abstract: | We study the long-term impact of climate change on economic activity across countries, using a stochastic growth model where labor productivity is affected by country-specific climate variables—defined as deviations of temperature and precipitation from their historical norms. Using a panel data set of 174 countries over the years 1960 to 2014, we find that per-capita real output growth is adversely affected by persistent changes in the temperature above or below its historical norm, but we do not obtain any statistically significant effects for changes in precipitation. Our counterfactual analysis suggests that a persistent increase in average global temperature by 0.04°C per year, in the absence of mitigation policies, reduces world real GDP per capita by more than 7 percent by 2100. On the other hand, abiding by the Paris Agreement, thereby limiting the temperature increase to 0.01°C per annum, reduces the loss substantially to about 1 percent. These effects vary significantly across countries depending on the pace of temperature increases and variability of climate conditions. We also provide supplementary evidence using data on a sample of 48 U.S. states between 1963 and 2016, and show that climate change has a long-lasting adverse impact on real output in various states and economic sectors, and on labor productivity and employment. |
| Keywords: | Climate change;Production growth;Labor;Public expenditure review;Climate policy;WP,math display |
| Date: | 2019–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/215&r=all |
| By: | Halkos, George; Nomikos, Stylianos |
| Abstract: | The United Nations introduced the 17 Sustainable Development Goals in 2015, aiming to tackle economic, social and environmental problems that exist in the world and to promote the concept of sustainability and sustainable development. This paper provides a comprehensive literature review regarding the background of sustainable development and each one of the 17 SDGs; an in-depth analysis of the problems addressed in each goal is provided and these problems’ impacts in the world are identified. The importance of achieving each goal is highlighted, while recent data regarding the targets included in each goal are provided, as well as the mean changes of these data for the past few years, based on a trend analysis that we performed. An evaluation of the achievement of various targets is discussed; we highlight the need of improvement of various SDGs’ progress, including the 4th, 11th and 13th SDG. |
| Keywords: | GRI; Corporate social responsibility (CSR); Energy; Trend analysis. |
| JEL: | M00 Q01 Q40 Q5 Q50 Q56 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105330&r=all |
| By: | Garnadt, Niklas; Grimm, Veronika; Reuter, Wolf Heinrich |
| Abstract: | This article explores the design of Carbon Adjustment Mechanisms based on an analysis of historical data, the existing literature as well as theoretical considerations. In the empirical analysis we quantify territorial emissions as compared to the CO2 footprints for countries within the EU-ETS area and globally, we show which (mostly upstream) industries account for the majority of emissions, and identify how their emissions are imported embedded in final or intermediate products from more downstream industries. In an analysis based on gravity equations, we find evidence for carbon leakage in some emission-intensive industries, but only small overall effects. Based on our own evidence and the current literature, we conclude that - if a Carbon Adjustment Mechanism is to be established - focusing on emissions intensive industries could balance excessive bureaucratic burden and carbon leakage mitigation. To be effective, such a system should also extend to embedded emissions in downstream industries to avoid a shift of imports down the value chain. Concerns with regard to international trade relations could be addressed by not implementing Carbon Adjustment Mechanisms unilaterally, but rather using them as the basis for a cooperative approach to climate protection jointly with the most important trading partners. |
| Keywords: | Carbon border adjustment,Carbon leakage,Carbon tax,Climate policy |
| JEL: | Q56 Q53 F18 F14 F55 F64 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:svrwwp:112020&r=all |
| By: | Maximilian Kellner; Marco Runkel |
| Abstract: | This paper analyzes the optimal level of public debt when taxes are used not only for funding public expenditures but also for correcting externalities from climate change. Taking into account externalities implies that the optimal policy deviates from tax smoothing. Provided cumulative marginal damages are larger from today’s than from tomorrow’s emissions, the internalization of externalities decreases [increases] optimal debt if tax rates are on the increasing [decreasing] side of the Laffer curve. The reversed holds if the cumulative marginal damages increase over time. Allowing for endogenous adaptation investments reduces the deviation from tax-smoothing, but nevertheless increases optimal debt. |
| Keywords: | environmental externality, public debt, tax smoothing |
| JEL: | H23 H63 Q54 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8865&r=all |
| By: | Leonard G\"oke; Mario Kendziorski |
| Abstract: | To manage computational complexity, models of macro-energy systems commonly deploy reduced sets of time-series data. This paper evaluates the adequacy of time-series reduction when modelling energy systems with fully renewable generation and a consequent dependency on storage. Analysis includes various methods to derive reduced time-series and to implement them into models, either as time-slices, also referred to as representative days, or continuous time-steps. All methods are tested with regard to unmet demand and accuracy of estimated system costs using a simple capacity expansion model of the power sector within a renewable energy system. Some methods achieve little unmet demand, but instead their results regarding storage are biased and favour seasonal at the expense of short-term storage. We conclude that renewable energy systems limit the adequacy of time-series reduction and future research should focus on alternative methods to reduce computational complexity. |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2101.06221&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the initial allocation of tradable emission permits |
| Keywords: | climate change, cap and trade, undergraduate, video |
| JEL: | Q54 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2104&r=all |
| By: | Abajian, Alexander; Pretnar, Nick |
| Abstract: | Residential solar panels in the United States (U.S.) are inefficiently distributed in terms of optimizing solar-electrical production. Controlling for local solar electricity generation potential (insolation), the residential solar share of electrical consumption is relatively higher in cloudier locales like the Pacific Northwest and Northeast than it is in sunnier areas like the Western U.S. and Florida. Rebates designed to increase residential solar adoption in places like Florida and Texas with relatively low solar-electrical shares are ineffective and may lead to net decreases in the residential solar share if housing and electrical consumption are complementary. This is because electrical consumption increases faster in response to a decline in effective residential solar prices than actual demand for panels themselves, thus driving down the solar share despite additional installations. Through the lens of a county-level structural model of demand for housing, electricity, and solar panels, we find that this phenomenon is especially prevalent in locales with high demand for cooling services (e.g., air conditioning, refrigeration, etc.) due to high numbers of cooling degree days. Inability to effectively store solar-produced electricity may be to blame. Our results thus suggest that future policies should subsidize nascent battery technologies in place of direct solar-panel installation rebates if the goal is to increase the residential solar share of electrical consumption. |
| Keywords: | subsidies, environmental subsidy, environmental economics, electricity, energy utilities, renewable energy, solar energy, neighborhood characteristics, diffu- sion, spatial pricing, industrial geography |
| JEL: | H23 Q42 R23 |
| Date: | 2021–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105481&r=all |
| By: | Bertin Martens (European Commission - JRC); Bo Zhao (Tilburg University - Netherlands) |
| Abstract: | We study the case of a Chinese industrial policy, implemented in Shanghai, that makes it mandator for car manufacturers to share electro-mechanical performance and real time navigation data from their entire fleet of electric and hybrid vehicles with local and central government authorities. This policy seeks to reduce emissions, assess the performance of New Energy Vehicles (NEVs), prevent fraud in state subsidies and strengthen the competitiveness of Chinese manufacturers of these vehicles. We argue that economies of scope in data aggregation may provide traditional market failure arguments for government intervention and mandatory data pooling. Our paper also illustrates how data access regulation could be used for economic regime competition. The EU and China pursue very similar data policy goals that hinge on economies of scope in data aggregation. However, they follow very different political processes to achieve these goals. |
| Keywords: | China, data governance, data sharing and access rights, regime competition, industrial policy |
| JEL: | L11 L41 L43 L62 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:decwpa:202008&r=all |
| By: | Pascal Daloz (Dassault Systèmes); Patrick Johnson (Dassault Systemes [Cambridge]); Sébastien Massart (Dassault Systèmes); Pascal Le Masson (CGS i3 - Centre de Gestion Scientifique i3 - CNRS - Centre National de la Recherche Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres); Benoit Weil (CGS i3 - Centre de Gestion Scientifique i3 - CNRS - Centre National de la Recherche Scientifique - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres) |
| Abstract: | The new logic of financing innovation: from uncertainty reduction to shaping the unknown Handbooks in finance, as well as literature reviews, recall that financing innovation and financing productivity investment differ in their level of uncertainty. 1 Students learn that financing production investment requires a positive net present value (NPV), whereas financing innovation requires taking into account multiple uncertainties by computing expected NPV. Models of decision-making in uncertainty helped to compute the value of reducing uncertainty. 2 This approach is considered the best way to value investment in research and development (R&D)-R&D being considered an activity to reduce uncertainty. 3 In this time of "disruptive innovation" in the context of multiple socioeconomic and technological changes-such as energy transition, aging, and digitalization-it is tempting to consider that innovation dynamics tend to be characterized by an increase in uncertainty. Investments would, therefore, become much riskier, and financing might seem almost impossible. Fortunately, this "wisdom" misses a critical feature of contemporary innovation: it is not mainly about uncertainty but much more about "the unknown". In contemporary innovation, one has to deal not only with uncertain events, such as unstable markets and technological advances, but also partially unknown chimeras, such as inclusive mobility, smart cities, and sustainable energy. Therefore, it is critical for innovation success to deal with these initially unknown situations and shape them in a beneficial direction. 4 This distinction between uncertain and unknown has major consequences on innovation investment: the financing approach must not only consist of reducing uncertainty but also of shaping the unknown, i.e., through a capacity to design new alternatives, worlds, opportunities, markets, and usages. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03042503&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the many cap and trade systems around the world |
| Keywords: | climate change, tradable emission permits, undergraduate, video |
| JEL: | Q54 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2105&r=all |
| By: | Siclari Bravo, Paola Gabriela |
| Abstract: | En este documento se aborda la relación entre ciudad y cambio climático, mediante la investigación de las tipologías, métricas y acciones aplicables al contexto de América Latina y el Caribe. Para profundizar el análisis de dichos aspectos, se seleccionaron cinco ciudades: Ciudad de México (México), Medellín (Colombia), Guayaquil (Ecuador), Puno (región) (Perú) y Recife (Brasil). En esa muestra, se analizaron el método y las herramientas de construcción del inventario de emisiones de gases de efecto invernadero, las características generales del plan de mitigación, el estudio de vulnerabilidad, el plan de adaptación y la relación de estas medidas con las contribuciones determinadas a nivel nacional. |
| Keywords: | CAMBIO CLIMATICO, CIUDADES, GAS DE EFECTO INVERNADERO, MEDIO AMBIENTE, DETERIORO AMBIENTAL, MEDICION, ESTUDIOS DE CASOS, CLIMATE CHANGE, CITIES, GREENHOUSE GASES, ENVIRONMENT, ENVIRONMENTAL DEGRADATION, MEASUREMENT, CASE STUDIES |
| Date: | 2021–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:46575&r=all |
| By: | Chen, Maozhi; Sinha, Avik; Hu, Kexiang; Shah, Muhammad Ibrahim |
| Abstract: | Despite the ongoing research on energy efficiency and innovation in the context of Industry 4.0, little is known on how degree of leakages in economy can impact the energy efficiency-innovation association. This issue has been addressed by the United Nations in their Sustainable Development Goals (SDG) report also. In the era of Industry 4.0, this issue can be crucial from the perspective of sustainable development, and we are analyzing this issue in case of Middle East and North African (MENA) countries over a period of 1990-2016. The second-generation methodological approaches have been adopted. Our results show that technological innovation has a positive impact on energy efficiency, whereas growth in shadow economy has a detrimental impact on energy efficiency. The structural transformation of economy has positive impact on energy efficiency. Based on our results, we have designed an SDG framework, which might help the MENA countries to achieve the objectives of SDG 7, SDG 8, SDG 9, and SDG 4. |
| Keywords: | Energy Efficiency; Technological Innovation; Sustainable Development Goals; Fisher Ideal Index; Lilien Index |
| JEL: | O3 O33 Q40 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104842&r=all |
| By: | Jeddi, Samir (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Sitzmann, Amelie (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Adequately designed prices are essential to achieve efficient coordination between the electricity network and market participants. However, consumer prices comprise several, possibly distorting price components. In an analytical model, we examine different regulatory settings, consisting of alternative spot market pricing schemes and network tariff designs in a dynamic context. While a setting with zonal pricing and fixed network tariffs achieves the highest welfare, a deviation of either the pricing scheme or the network tariff design leads to inefficiencies. However, we show that two inefficiently designed price components can be better than one, especially if network tariffs correct for the static inefficiency of the pricing scheme. Besides the network tariff design, network operators must pay attention to the allocation of network costs. It affects spatial price signals and, therefore, the dynamic allocation of investment decisions. Considering these decisions in a dynamic framework increases the requirements for the configuration of network tariffs, especially with volume-based network tariffs. |
| Keywords: | Network tariffs; network regulation; market design; pricing schemes; dynamic consistency; spatial investment incentives |
| JEL: | D47 D61 L51 L94 Q41 |
| Date: | 2021–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2021_001&r=all |
| By: | Arik Levinson (Department of Economics, Georgetown University) |
| Abstract: | I pose three questions: Does pollution make people unhappy? How much? And is the effect proportional to pollution’s estimated effects on mortality and productivity? Answers to those three questions must overcome three obstacles: unobserved characteristics of locales correlated with both pollution and happiness; selection by pollution-averse individuals to less polluted areas; and habituation by residents to local circumstances. Since 2010, when the initial few studies relating happiness to pollution were last surveyed, thirty more have been published. I discuss how the new studies tackle each of those three problems and I devise a method of comparing their findings despite their different measures of both happiness and pollution. I combine the happiness and income coefficients from each study into a willingness-to-pay measure, for a one-day, one-standard-deviation pollution reduction. Finally, I document a surprising concordance between those calculated willingness-to-pay measures and new research assessing the effects of pollution on mortality and productivity |
| Keywords: | Stated well-being, willingness-to-pay, habituation, short-termism |
| JEL: | Q51 Q53 H41 |
| Date: | 2020–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~20-20-03&r=all |
| By: | Frederick van der Ploeg; Armon Rezai |
| Abstract: | The general equilibrium model developed by Golosov et al. (2014), GHKT for short, is modified to allow for additional negative impacts of global warming on utility and productivity growth, mean reversion in the ratio of climate damages to production, labour-augmenting technical progress, and population growth. We also replace the GHKT assumption of full depreciation of capital each decade by annual logarithmic depreciation. Furthermore, we allow the government to use a lower discount rate than the private sector. We derive a tractable rule for the optimal carbon price for each of these extensions. We then simplify the GHKT model by modelling temperature as cumulative emissions and calibrating it to Burke et al. (2015) damages. Finally, we consider how the rule for the optimal carbon price must be modified to allow for a temperature cap, and what this implies for stranded oil and gas reserves. We illustrate our analytical results with a range of optimal policy simulations. |
| Keywords: | carbon price, tractable rule, general equilibrium, utility and growth damages, technical progress, population growth, logarithmic depreciation, differential discount rates, temperature cap, stranded oil and gas reserves |
| JEL: | H21 Q51 Q54 |
| Date: | 2021–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:oxcrwp:227&r=all |
| By: | Fateh Belaïd; Christophe Rault |
| Abstract: | This paper investigates the key factors affecting household energy expenditure in Egypt. Based upon the latest 2015 Egyptian HIECS Survey, we develop a quantile regression model with an innovative variable selection approach via Adaptive Lasso Regularization technique to untangle the spectrum of household energy expenditure. Unsurprisingly, income, age, household size, housing size, and employment status are salient predictors for energy expenditure. Housing characteristics have a moderate impact, while socio-economic attributes have a much larger one. The largest variations in household energy expenditures in Egypt are mainly due to variations in income, household size, and housing type. Our findings document substantial differences in household energy expenditure, originating from the asymmetric tails of the energy expenditure distribution. This outcome highlights the added value of implementing quantile regression methods. Our empirical results have various interesting policy implications regarding residential energy efficiency and carbon emissions reduction in Egypt. |
| Keywords: | residential energy expenditure, energy efficiency, quantile regression, Adaptive Lasso, Egypt. |
| JEL: | C11 C21 D12 Q40 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8815&r=all |
| By: | Signe Krogstrup; William Oman |
| Abstract: | Climate change is one of the greatest challenges of this century. Mitigation requires a large-scale transition to a low-carbon economy. This paper provides an overview of the rapidly growing literature on the role of macroeconomic and financial policy tools in enabling this transition. The literature provides a menu of policy tools for mitigation. A key conclusion is that fiscal tools are first in line and central, but can and may need to be complemented by financial and monetary policy instruments. Some tools and policies raise unanswered questions about policy tool assignment and mandates, which we describe. The literature is scarce, however, on the most effective policy mix and the role of mitigation tools and goals in the overall policy framework. |
| Keywords: | Climate change;Carbon tax;Climate policy;Greenhouse gas emissions;Public investment and public-private partnerships (PPP);WP,government failure,policy authorities,Policy tool,mitigation policy,monetary policy tool,Policy instrument |
| Date: | 2019–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/185&r=all |
| By: | Arik Levinson (Department of Economics, Georgetown University) |
| Abstract: | The US has been a global leader in regulating local air pollution and a global laggard in regulating greenhouse gases (GHGs). For decades, critics of US policy have expressed fears that stringent US regulations on local air pollution would lead to pollution havens overseas. Prior research suggests that has not happened. But what about the converse fear? Are the less stringent US climate regulations causing the US to become a pollution haven for other countries’ GHG-intensive industries? We provide a decomposition of US manufacturing GHG emissions and find no evidence of offshoring either to or from the United States since 1990. |
| Keywords: | Climate, International Trade, Sector Decomposition |
| JEL: | Q51 Q53 H41 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~21-21-01&r=all |
| By: | Krekel, Christian; Rechlitz, Julia; Rode, Johannes; Zerrahn, Alexander |
| Abstract: | Although there is strong support for renewable energy plants, they are often met with local resistance. We quantify the externalities of renewable energy plants using well-being data. We focus on the example of biogas, one of the most frequently deployed technologies besides wind and solar. To this end, we combine longitudinal household data with novel panel data on more than 13,000 installations in Germany. Identification rests on a spatial difference-in-differences design exploiting exact geographical coordinates of households, biogas installations and wind direction and intensity. We find limited evidence for negative externalities: impacts are moderate in size and spatially confined to a radius of 2,000 metres around plants. We discuss implications for research and regional planning, in particular minimum setback distances and potential monetary compensations. |
| Keywords: | renewables; biogas; externalities; social acceptance; wellbeing; spatial analysis; economic geography |
| JEL: | C23 Q42 Q51 R20 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:108526&r=all |
| By: | Bruno De Borger; Amihai Glazer; Stef Proost |
| Abstract: | People who anticipate the introduction of a policy can adapt their behavior, perhaps in ways that make the policy ineffective and exacerbate the problem to be addressed. This paper develops a political economy model to study strategic behavior related to the introduction of congestion policies, focusing on tradeable driving permits and congestion tolls. We have the following results. First, anticipatory behavior after the policies are announced but prior to their introduction may make both congestion policies welfare-reducing. Second, drivers will oppose the policies even when they receive all permits for free, or toll revenues are distributed to drivers only. As a consequence, strategic behavior makes it more difficult to get a political majority to support both congestion policies. Third, in an infinite horizon setting, tradable permits are superior to congestion tolls in that they avoid strategic behavior once the system is implemented. In contrast, with congestion tolls the steady-state equilibrium implies continuing strategic behavior. Drivers will always strictly prefer a permit system over congestion tolls as long as they receive a sufficient share of the permits for free. |
| Keywords: | anticipatory behaviour, political economy, congestion tolls, tradeable driving permits, strategic behavior |
| JEL: | H23 R41 R48 P16 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8821&r=all |
| By: | Heblich, Stephan; Gibbons, Stephen |
| Abstract: | Shale gas has grown to become a major new source of energy in countries around the globe. While its importance for energy supply is well recognized, there has also been public concern over potential risks from hydraulic fracturing (‘fracking’). Although commercial development has not yet taken place in the UK, licenses for drilling were issued in 2008, signalling potential future development. This paper examines whether public fears about fracking affect house prices in areas that have been licensed for shale gas exploration. Our estimates suggest differentiated effects. Licensing did not affect house prices but fracking the first well in 2011, which caused two minor earthquakes, did. We find a 3.9–4.7 percent house price decrease in the area where the earthquakes occurred. The earthquakes were too minor to have caused any damage but we find the effect on prices extends to a radius of about 25 km served by local newspapers. This evidence suggests that the earthquakes and newspaper coverage increased awareness of exploration activity and fear of the local consequences |
| Keywords: | ES/K006460/1; ES/M010341/1; Elsevier |
| JEL: | R14 J01 |
| Date: | 2021–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:107900&r=all |
| By: | Koondhar, Mansoor Ahmed; Shahbaz, Muhammad; Memon, Kamran Ali; Ozturk, Ilhan; Rong, Kong |
| Abstract: | Environmental Kuznets curve (EKC) is a statistical tool to examine the cointegration and causality nexus between economic growth and carbon emissions. The EKC is widely used in energy and environmental economics studies. Although, a large number of researchers have analyzed the EKC by applying different statistical models, and some review work has been summarized to draw a pictorial view of extending studies in this research field. However, still, the macroscopic overview needs to be considered. Therefore, this study aims to contribute to the literature for finding a new pathway for further research employing, and to facilitate this research Scientometric analysis is carried out by feature in CiteSpace. The dataset of screened 2384 records out of a total of 59225 Web of Science (WoS) references for the timespan 1999-2019 was used to visualize the knowledge map and outcome of the scientific enterprise. The visualization results reveal the most influencing studies, institutions, authors, countries, keywords, and category cloud, in the research field of EKC. This paper reveals that the research on EKC in alignment with green and sustainable technology science requires more attention. Further, this paper would help authors and publishers make their decisions for the research of EKC and planning for future perspectives to contribute to academic development and applied methodology. |
| Keywords: | Environmental Kuznets Curve (EKC), Bibliometric, Scientometric Analysis Algorithm, Co-citation, Visualization, CiteSpace |
| JEL: | Q0 |
| Date: | 2020–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104949&r=all |
| By: | Bibak, Baran |
| Abstract: | English Abstract: In this chapter, we review different energy sources that are used and implemented in Iran’s electricity market. Specifically, we focus on the renewable energy sources that are in place in the country, e.g. hydropower, wind, and solar. We review the technology and the capacities of renewable energy production as well as the potential future plans for expanding the renewable energy sector in Iran. Persian Abstract: در این فصل مروری میکنیم بر منابع مختلف انرژی که در بازار برق ایران وجود دارد. مشخصا، بر منابع انرژی تجدیدپذیر تمرکز خواهیم کرد. تکنولوژیهای مربوطه را مرور میکنیم. و به پتانسیلهای این بخش خواهیم پرداخت. امید که قبول واقع افتد. |
| Keywords: | Electricity Market; Reneable Energy; Alternative Energy Sources |
| JEL: | Q20 Q28 Q42 |
| Date: | 2019–08–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105489&r=all |
| By: | Maike Becker; Gregor Pfeifer; Karsten Schweikert |
| Abstract: | Fuel prices are commonly perceived to be excessively high, which regularly triggers political discussions about fuel price regulations. Consumers demand stricter fuel price regulations to provide transparency about the current price level and to protect them from sudden price fluctuations. Such regulations are already in place in several countries, but whether they indeed help lower the overall fuel price level is unclear. In this paper, we study the effect of Austria’s Fuel Price Fixing Act on gasoline and diesel price levels. Using the synthetic control method, we construct a counterfactual and estimate Austria’s price trends in absence of the intervention. Our empirical results suggest, that immediately after the Fuel Price Fixing Act came into effect, gasoline prices are 23.4% lower than the synthetic control predicts. The effect on diesel prices appears to be less pronounced and amounts to 6.6% lower prices. Austria’s fuel price regulation seems to have been effective in terms of gasoline prices but may need further refinements to effectively tackle diesel prices as well. |
| Keywords: | causal effects, diesel, gasoline, price regulation, retail fuel prices |
| JEL: | C22 D43 Q41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8819&r=all |
| By: | Majdi Debbich |
| Abstract: | This paper uses an untapped source of satellite-recorded nightlights and gas flaring data to characterize the contraction of economic activity in Yemen throughout the ongoing conflict that erupted in 2015. Using estimated nightlights elasticities on a sample of 72 countries for real GDP and 28 countries for oil GDP over 6 years, I derive oil and non-oil GDP growth for Yemen. I show that real GDP contracted by a cumulative 24 percent over 2015-17 against 50 percent according to official figures. I also find that the impact of the conflict has been geographically uneven with economic activity contracting more in some governorates than in others. |
| Keywords: | Oil;Oil production;Economic recession;Natural gas sector;Oil sector;WP,real GDP,radiant heat |
| Date: | 2019–10–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2019/221&r=all |
| By: | Espinola-Arredondo, Ana (Washington State University); Stathopoulou, Eleni (University of Leicester); Munoz, Felix (Washington State University) |
| Abstract: | This paper examines green alliances between environmental groups and polluting firms, which have become more common in the last decades, and analyzes how they a¤ect policy design. We first show that the activities of regulators and environmental groups are strategic substitutes, giving rise to free-riding incentives on both agents. Nonetheless, we find that the presence of the environmental group alone yields no welfare bene?t, as firms have no incentives to alter their abatement decisions when they do not face regulation. Therefore, the introduction of environmental groups yields a welfare gain when firms are already subject to regulation, suggesting that the former cannot completely replace environmental policy. |
| Keywords: | Abatement; Emission fees; R&D disruptive e¤ects; Equilibrium pro?les; Spillovers |
| JEL: | H23 L12 Q58 |
| Date: | 2019–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:wsuwpa:2019_001&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the EU ETS |
| Keywords: | climate change, cap and trade, undergraduate, video |
| JEL: | Q54 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2106&r=all |
| By: | Jonathan Colmer; Ralf Martin; Mirabelle Muûls; Ulrich J. Wagner |
| Abstract: | In theory, market-based regulatory instruments correct market failures at least cost. However, evidence on their efficacy remains scarce. We evaluate the European Union Emissions Trading Scheme (EU ETS) - the world's first and largest market-based climate policy. Using administrative data on almost 4,000 French manufacturing firms, we estimate that the EU ETS induced regulated firms to reduce carbon dioxide emissions by 8-12% compared to unregulated firms after the Pilot phase, a necessary condition for climate change mitigation. These reductions account for 26% of the concurrent decline in aggregate industrial emission in France. We do not estimate any negative effects on the scale of production; instead we find that firms reduced the emissions intensity of value added by making targeted investments. We find no evidence that firms outsourced production to unregulated firms or markets. Collectively, these findings suggest that the EU ETS induced global emissions reductions, a necessary and sufficient condition for mitigating climate change. |
| Keywords: | climate, externalities & environmental regulation, trade and environment |
| JEL: | Q58 H23 F18 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1728&r=all |
| By: | Ali, Amjad; Audi, Marc; Roussel, Yannick |
| Abstract: | This article investigates the impact of renewable energy consumption and natural resource depletion on environmental degradation from 1990 to 2014. The analysis of this study is distributed into three parts, developing country analysis, developed country analysis and complete sample analysis. An insignificant relation has found between natural resource depletion and environmental degradation in the case of complete sample analysis and developing country analysis, but vica-versa in developed countries. Fossil fuel energy consumption has a positive and significant impact on environmental degradation in developing countries. Renewable energy consumption has negative impact on environmental degradation in the case of complete sample analysis and developed country analysis, but visa-versa in developing countries. Economic growth positively and significantly effecting environmental degradation in all the three cases, this mean for higher economic growth we have to bear some environmental degradation. But it is the need of the hour that we should find some threshold between economic growth and pollutant emissions, so that a healthy environment can be safe for coming generations. So, for a healthy environment, fossil fuel consumption should be reduced and consumption of renewable energy with merchandised trade and urbanization can be encouraged. |
| Keywords: | environmental degradation, natural resources, economic growth, renewable energy |
| JEL: | F43 Q20 Q26 Q57 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105277&r=all |