|
on Energy Economics |
| By: | Nathaly M Rivera; Cristobal Ruiz Tagle, Elisheba Spiller |
| Abstract: | Renewable energy can yield social benefits through local air quality improvements and their subsequent effects on human health. We estimate some of these benefits using data gathered during the rapid adoption of large-scale solar power generation in Chile over the last decade. Relying on exogenous variation from incremental solar generation capacity over time, we find that solar energy displaces fossil fuel generation (primarily coal-fired generation) and curtails hospital admissions, particularly those due to lower respiratory diseases. These effects are noted mostly in cities downwind of displaced fossil fuel generation and are present across all age groups. Our results document the existence of an additional channel through which renewable energy can increase social welfare. |
| Keywords: | Coal-fired power plants; coal displacement; solar generation; power plants; pollution; morbidity; developing countries; Latin America |
| JEL: | I18 L94 Q42 Q53 |
| Date: | 2021–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2021wpecon04&r=all |
| By: | Perera, Pradeep (Asian Development Bank Institute); Sarker, Tapan (Asian Development Bank Institute); Islam, K. M. Nazmul (Asian Development Bank Institute); Belaïd, Fateh (Asian Development Bank Institute); Taghizadeh-Hesary, Farhad (Asian Development Bank Institute) |
| Abstract: | We examine the challenges of expanding access to an affordable electricity supply for rural households by addressing the subsidies and cost recovery of the existing tariff policy in the context of Uttar Pradesh, India. We used household survey data to assess the consumer attitudes, level of satisfaction, and affordability of electricity in rural areas of Uttar Pradesh, where more than 78% of the state’s population resides. We also examined the regulatory challenges of expanding access to the electricity supply to rural households in an affordable and fiscally sustainable manner. The main conclusions are that households have a higher level of satisfaction and willingness to pay as the supply duration has increased from 12–13 hours per day before 2017 to 15–18 hours per day. By contrast, the affordability of the lifeline level of consumption for people belonging to lower-income groups is low, and there is a need for continued fiscal subsidies to make the electricity affordable for this group of consumers. The case highlights that the prevailing electricity market, based on unmetered connections, a fixed monthly tariff, and a subsidy policy of fiscal transfers to the utility, is suboptimal in its targeting efficiency, incentives for energy conservation, and transparency of subsidy payments. Our policy recommendations apply to developing countries that are reforming their electricity markets. |
| Keywords: | affordability; access to electricity; regulatory framework; fiscal sustainability; India |
| JEL: | O12 O13 O53 Q41 |
| Date: | 2021–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:1211&r=all |
| By: | Xingcai Zhou; Jiangyan Wang |
| Abstract: | China has made great achievements in electric power industry during the long-term deepening of reform and opening up. However, the complex regional economic, social and natural conditions, electricity resources are not evenly distributed, which accounts for the electricity deficiency in some regions of China. It is desirable to develop a robust electricity forecasting model. Motivated by which, we propose a Panel Semiparametric Quantile Regression Neural Network (PSQRNN) by utilizing the artificial neural network and semiparametric quantile regression. The PSQRNN can explore a potential linear and nonlinear relationships among the variables, interpret the unobserved provincial heterogeneity, and maintain the interpretability of parametric models simultaneously. And the PSQRNN is trained by combining the penalized quantile regression with LASSO, ridge regression and backpropagation algorithm. To evaluate the prediction accuracy, an empirical analysis is conducted to analyze the provincial electricity consumption from 1999 to 2018 in China based on three scenarios. From which, one finds that the PSQRNN model performs better for electricity consumption forecasting by considering the economic and climatic factors. Finally, the provincial electricity consumptions of the next $5$ years (2019-2023) in China are reported by forecasting. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.00711&r=all |
| By: | Erik Heilmann (University of Kassel); Andreas Zeiselmair (Technical University of Munich); Thomas Estermann (Technical University of Munich) |
| Abstract: | Due to an ongoing energy transition, electricity networks are increasingly challenged by situations where local electrical power demands are high but local generation is low and vice versa. This finally leads to a growing number of technical problems. To solve these problems in the short-term, the electrical power of load and generation must be adjusted as available flexibility. In zonal electricity systems, one often discussed concept to utilize flexibility is local flexibility markets. Based on auction theory, we provide a comprehensible framework for the use of network-supportive flexibility in general. In this context, we discuss the problem of matching supply and demand. We introduce three matching approaches that can be applied and adapted for different network situations. In addition to a qualitative description of the three approaches, we present a case study of an exemplary distribution network and explore different scenarios to demonstrate the utility of the algorithms. We compare the three approaches on a qualitative level with quantitative inputs from the case study. The comparison considers the specific cost, flexible energy, ensured demand coverage, data minimization, computational effort and the transferability of the three approaches. |
| Keywords: | local flexibility markets, matching, multi-dimensional winner determination, electricity network operation |
| JEL: | D44 L94 Q41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202110&r=all |
| By: | Koichiro Ito (University of Chicago); Takanori Ida (Kyoto University); Makoto Tanaka (National Graduate Institute for Policy Studies (GRIPS)) |
| Abstract: | We study a problem in which policymakers need to screen self-selected individuals by unobserved heterogeneity in social welfare gains from a policy intervention. In our framework, the marginal treatment effects and marginal treatment responses arise as key statistics to characterize social welfare. We apply this framework to a randomized field experiment on electricity plan choice. Consumers were offered socially efficient dynamic pricing with randomly assigned take-up incentives. We find that price-elastic consumers—who generate larger welfare gains—are more likely to self-select. Our counterfactual simulations quantify the optimal take-up incentives that exploit observed and unobserved heterogeneity in selection and welfare gains. |
| JEL: | L94 Q41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:bfi:wpaper:2021-12&r=all |
| By: | Fiona Burlig (University of Chicago); James B. Bushnell; David Rapson (University of California, Davis); Catherine D. Wolfram (University of California, Berkeley - Economic Analysis & Policy Group; National Bureau of Economic Research (NBER)) |
| Abstract: | We provide the first at-scale estimate of electric vehicle (EV) home charging. Previous estimates are either based on surveys that reach conflicting conclusions, or are extrapolated from a small, unrepresentative sample of households with dedicated EV meters. We combine billions of hourly electricity meter measurements with address-level EV registration records from California households. The average EV increases overall household load by 2.9 kilowatt-hours per day, less than half the amount assumed by state regulators. Our results imply that EVs travel 5,300 miles per year, under half of the US fleet average. This raises questions about transportation electrification for climate policy. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:bfi:wpaper:2021-17&r=all |
| By: | Rudolph, Frederic; Jochem, Patrick |
| Abstract: | Im vergangenen Jahr waren die Zuwachszahlen im Bereich der Elektromobilität in Deutschland höher als jemals zuvor. Das enorme Wachstum ist vor allem der EU-Verordnung zur Flottenemissionsnorm zu verdanken. Die Elektromobilität hat damit einen wichtigen Schritt gemacht und gezeigt, dass sie das Potenzial hat, den Verbrennungsmotor bald zu verdrängen. Doch allein ein sehr hoher Marktanteil an Elektroautos genügt nicht, um die mittelfristigen deutschen Klimaschutzziele zu erreichen. Dies ist eine der zentralen Aussagen der Autoren des vorliegenden Impulspapiers. Sie empfehlen, dass die Europäische Union Herstellern weiterhin ambitionierte Zielvorgaben für emissionsarme Pkw machen sollte, damit schon im Jahr 2030 annähernd alle neu zugelassenen Pkw elektrisch angetrieben werden. Autos mit Hybridantrieb sind auf diesem Weg maximal eine wichtige Übergangstechnologie. Zentrale Voraussetzung ist zudem, dass die derzeitigen Ladevorgänge erleichtert werden, damit der Umstieg auf Fahrzeuge mit alternativem Antriebskonzept deutlich attraktiver wird. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wupimp:15&r=all |
| By: | Clive L. Spash |
| Abstract: | Today, environmental economics is the response of the neoclassical economic school to the ecological crisis, but at one time its leading contributors regarded it as a revolutionary development that would change the conduct and content of economics as a discipline. Understanding and addressing environmental pollution was core to that potential paradigm shift. In tracing the history of conceptualising pollution as an externality and market failure this paper covers the development of ideas by Marshall, Pigou, Pareto, Coase, Stigler, Samuelson, Ciciacy-Wantrup and Kapp. Pollution externality theory is shown to have incorporated an elitist ethics and liberal market ideology. As a market failure pollution was deemed a minor correctible error of the price system. Monetary valuation of social and environmental harm became the means of justifying optimal levels of pollution. Neoliberal theories of spreading property rights further watered down potential interventionist aspects. Bio-physical realism, in the work of Kneese, Ayres and dÂ’Arge, and social realism in KappÂ’s theory of cost shifting were lost once environmental economics adopted a deductivist mathematical formalism. KappÂ’s alternative theory is based on a classic institutionalists economic understanding of cost shifting and power relations. It advocates a public policy response in the form of objective social minima achieved via regulation and planning. This theory has until now been successfully supressed to prevent a potential revolutionary paradigm shift in economic price theory |
| Keywords: | externalities; market failure, cost shifting; price theory; pollution; Pigou; Coase; Kapp; paradigm shift; environmental economics, neoclassical economics; institutional economics, neolibera |
| JEL: | A13 B2 B55 D61 D62 H21 H23 P16 P18 P48 Q5 Q52 Q53 Q57 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwsre:sre-disc-2021_01&r=all |
| By: | Kilian, Lutz |
| Abstract: | Using a novel dataset, we develop a structural model of the Very Large Crude Carrier (VLCC) market between the Arabian Gulf and the Far East. We study how fluctuations in oil tanker rates, oil exports, shipowner profits, and bunker fuel prices are determined by shocks to the supply and demand for oil tankers, to the utilization of tankers, and to the cost of operating tankers, including bunker fuel costs. Our analysis shows that time charter rates are largely unresponsive to tanker cost shocks. In response to higher costs, voyage profits decline, as cost shocks are only partially passed on to round-trip voyage rates. Oil exports from the Arabian Gulf also decline, reflecting lower demand for VLCCs. Positive utilization shocks are associated with higher profits, a slight increase in time charter rates and lower fuel prices and oil export volumes. Tanker supply and tanker demand shocks have persistent effects on time charter rates, round-trip voyage rates, the volume of oil exports, fuel prices, and profits with the expected sign. This paper examines the advantages and drawbacks of alternative methods of estimating oil supply and oil demand elasticities and of incorporating this information into structural VAR models. I not only summarize the state of the literature, but also draw attention to a number of econometric problems that have been overlooked in this literature. Once these problems are recognized, seemingly conflicting conclusions in the recent literature can be resolved. My analysis reaffirms the conclusion that the one-month oil supply elasticity is close to zero, which implies that oil demand shocks are the dominant driver of the real price of oil. The focus of this paper is not only on correcting some misunderstandings in the recent literature, but on the substantive and methodological insights generated by this exchange, which are of broader interest to applied researchers. |
| Keywords: | Oil supply elasticity,oil demand elasticity,IV estimation,structural VAR,Bayesian inference,oil price,gasoline price |
| JEL: | Q43 Q41 C36 C52 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:649&r=all |
| By: | Kilian, Lutz; Nomikos, Nikos K.; Zhou, Xiaoqing |
| Abstract: | Using a novel dataset, we develop a structural model of the Very Large Crude Carrier (VLCC) market between the Arabian Gulf and the Far East. We study how fluctuations in oil tanker rates, oil exports, shipowner profits, and bunker fuel prices are determined by shocks to the supply and demand for oil tankers, to the utilization of tankers, and to the cost of operating tankers, including bunker fuel costs. Our analysis shows that time charter rates are largely unresponsive to tanker cost shocks. In response to higher costs, voyage profits decline, as cost shocks are only partially passed on to round-trip voyage rates. Oil exports from the Arabian Gulf also decline, reflecting lower demand for VLCCs. Positive utilization shocks are associated with higher profits, a slight increase in time charter rates and lower fuel prices and oil export volumes. Tanker supply and tanker demand shocks have persistent effects on time charter rates, round-trip voyage rates, the volume of oil exports, fuel prices, and profits with the expected sign. |
| Keywords: | Shipping,VLCC,crude oil,bunker fuel,tanker,voyage,time charter,profits,exports,passthrough |
| JEL: | Q43 R41 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:648&r=all |
| By: | Afees A. Salisu (Centre for Econometric and Allied Research, University of Ibadan, Ibadan, Nigeria); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield, 0028, South Africa); 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: | In this study, we examine the predictive value of tail risks for oil returns using the longest possible data available for the modern oil industry, i.e., 1859-2020. The Conditional Autoregressive Value at Risk (CAViaR) of Engle & Manganelli (2004) is employed to generate the tail risks for both 1% and 5% VaRs across four variants (Adaptive, Symmetric absolute value, Asymmetric slope and Indirect GARCH) of the CAViaR with the best variant obtained using the Dynamic Quantile test (DQ) test and %Hits. Overall, our proposed predictive model for oil returns that jointly accommodates tail risks associated with the oil market and US financial market improves the out-of-sample forecast accuracy of oil returns in contrast with a benchmark (random walk) model as well as a one-predictor model with own tail risk only. Our results have important implications for academicians, investors and policymakers. |
| Keywords: | Oil returns, Tail risks, Forecasting, Advanced equity markets |
| JEL: | C22 C53 G15 Q02 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202120&r=all |
| By: | John Van Reenen |
| Abstract: | The new US administration has the opportunity to reset an economic model that has failed to deliver prosperity for millions of Americans for decades. John Van Reenen calls for a Grand Innovation Challenge Fund - federal funding for research and development to fuel technological innovation and raise productivity growth. |
| Keywords: | r&d, innovation, patents, tax system, productivity, growth |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:599&r=all |
| By: | Beiser-McGrath, Liam F. |
| Abstract: | This PECC Lab Research Brief examines public opinion on the Green Industrial Revolution. It uses a nationally representative survey experiment to estimate how the various components of the Green Industrial Revolution affect public support, and which policy proposals are most popular. Executive Summary: - The Prime Minister has recently unveiled a ten-point plan for a Green Industrial Revolution to meet net-zero emissions targets. - We conducted an original survey experiment to causally identify the public’s support for particular points of this plan and their overall level of support. - Public support is increased substantially by consumer grants for electric vehicles, funding of electric public transport, planting of trees, and wind power. - Investment in air and sea vehicles and nuclear power does not meaningfully increase the public’s support. - An ambitious version of the Green Industrial Revolution sees majority support amongst the public, while taking no action is widely opposed. - This ambitious version of the Green Industrial Revolution sees support across party lines, being similarly popular amongst Conservative and Labour supporters. https://www.pecclab.com/publication/publ ic-support-for-green-industrial-revoluti on-pecc-lab-research-brief/ |
| Date: | 2021–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:xpkh4&r=all |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Joseph Nnanna (The Development Bank of Nigeria, Abuja, Nigeria) |
| Abstract: | This study assesses how globalization modulates the effect of governance on CO2 emissions in sub-Saharan African countries. The empirical evidence is based on Generalized Method of Moments. The minimum level (or negative threshold) of FDI required for it to interact with political stability and contribute towards the green economy is 45% of GDP, while 90% of GDP is the maximum level (or positive threshold) required for trade to complement “voice & accountability†in mitigating CO2 emissions. 76 % of GDP and 80 % of GDP are respectively negative trade thresholds for government effectiveness and economic governance. The corresponding negative trade thresholds for the rule of law, corruption-control and institutional governance are respectively, 230% of GDP, 63.5% of GDP and 106.5% of GDP. Actionable openness policy thresholds are provided to inform policy makers on how governance interacts with globalization to promote the green economy. |
| Keywords: | CO2 emissions; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/015&r=all |
| By: | Nicolas Charles (BRGM - Bureau de Recherches Géologiques et Minières (BRGM)); Johann Tuduri (BRGM - Bureau de Recherches Géologiques et Minières (BRGM)); Gaétan Lefebvre (BRGM - Bureau de Recherches Géologiques et Minières (BRGM)); Olivier Pourret (UniLaSalle); Fabrice Gaillard (ISTO - Institut des Sciences de la Terre d'Orléans - UMR7327 - CNRS - Centre National de la Recherche Scientifique - UO - Université d'Orléans - INSU - CNRS - Institut national des sciences de l'Univers - OSUC - Observatoire des Sciences de l'Univers en région Centre - INSU - CNRS - Institut national des sciences de l'Univers - Observatoire de Paris - PSL - Université Paris sciences et lettres - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique - BRGM - Bureau de Recherches Géologiques et Minières (BRGM), Magma - UMR7327 - ISTO - Institut des Sciences de la Terre d'Orléans - UMR7327 - CNRS - Centre National de la Recherche Scientifique - UO - Université d'Orléans - INSU - CNRS - Institut national des sciences de l'Univers - OSUC - Observatoire des Sciences de l'Univers en région Centre - INSU - CNRS - Institut national des sciences de l'Univers - Observatoire de Paris - PSL - Université Paris sciences et lettres - UO - Université d'Orléans - CNRS - Centre National de la Recherche Scientifique - BRGM - Bureau de Recherches Géologiques et Minières (BRGM)); Kathryn Goodenough (BGS - British Geological Survey) |
| Keywords: | Rare earth elements,Europe,Greenland,resources,Terres rares TR,Groenland,ressources |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03138953&r=all |
| By: | Ghafelebashi, Ali; Razaviyayn, Meisam; Dessouky, Maged |
| Abstract: | With rapid population growth and urban development, traffic congestion has become an inescapable issue, especially in large cities. Many congestion reduction strategies have been proposed in the past, ranging from roadway extension to transportation demand management programs. In particular, congestion pricing schemes have been used as negative reinforcements for traffic control. This project studies a different approach of offering positive incentives to drivers to take alternative routes. More specifically, an algorithm is proposed to reduce traffic congestion and improve routing efficiency by offering personalized incentives to drivers. The idea is to use the wide-accessibility of smart communication devices to communicate with drivers and develop a look-ahead incentive offering mechanism using individuals’ routing preferences and aggregate traffic information. The incentives are offered after solving large-scale optimization problems in order to minimize the expected congestion (or minimize the expected carbon emission). Since these massive size optimization problems need to be solved continually in the network, a distributed computational approach is developed where a major computational burden is carried out on the individual drivers' smartphones (and in parallel among drivers). The convergence of the proposed is an established distributed algorithm under a mild set of assumptions (that are verified using real data). View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Congestion reduction, personalized incentives, routing, emissions |
| Date: | 2021–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt5b82168n&r=all |
| By: | Dorothée CHARLIER; Mouez FODHA; Djamel KIRAT |
| Keywords: | , CO2 emissions, Residential Sector, Panel data, Energy prices, Carbon tax |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2849&r=all |
| By: | Tomenendal, Matthias; Lange, Hans Rüdiger; Raffer, Christian |
| Abstract: | In former studies cluster firms have hardly proven to be more resilient to shocks than non-cluster firms. Yet, there is a lack of research on how cluster firms can achieve resilience. Based on a qualitative study of firms in the Eastern German Lusatian energy cluster we found that after a shock - a sudden decision on energy policy changes of the German federal government - cluster firms have replaced pre- by postshock institutional logics. Studied firms put more emphasis on further utilising core competences and demonstrate more openness to communicate inside and outside of the cluster. In essence, cluster firms change institutional logics for strengthened T-shaped cluster competences, which subsequently lead to higher resilience of cluster firms and clusters. By linking institutional logics to cluster resilience via cluster competences we provide a new perspective on how cluster firms can be resilient in the face of a shock. |
| Keywords: | neo-institutionalism,cluster resilience,cluster competences |
| JEL: | L14 L29 O43 R11 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:imbwps:99&r=all |
| By: | Anne de Bortoli; Zoi Christoforou |
| Abstract: | The indirect environmental impacts of transport disruptions in urban mobility are frequently overlooked due to a lack of appropriate assessment methods. Consequential Life Cycle Assessment (CLCA) is a method to capture the environmental consequences of the entire cause and effect chain of these disruptions but has never been adapted to transportat disruption at the city scale. This paper proposes a mathematical formalization of CLCA applied to a territorial mobility change. The method is applied to quantify the impact on climate change of the breakthrough of free-floating e-scooters (FFES) in Paris. A FFES user survey is conducted to estimate the modal shifts due to FFES. Trip substitutions from all the Parisian modes concerned are considered - personal or shared bicycles and motor scooters, private car, taxi and ride-hailing, bus, streetcar, metro and RER (the Paris metropolitan area mass rapid transit system). All these Parisian modes are assessed for the first time using LCA. Final results estimate that over one year, the FFES generated an extra thirteen thousand tons of CO2eq under an assumption of one million users, mainly due to major shifts coming from lower-emitting modes (60% from the metro and the RER, 22% from active modes). Recommendations are given to enhance their carbon footprint. A scenario analysis shows that increasing the lifetime mileage is insufficient to get a positive balance: reducing drastically servicing emissions is also required. A sensitivity analysis switching the French electricity mix for eleven other country mixes suggests a better climate change effect of the FFES in similar metropolitan areas with higher electricity carbon intensity, such as in Germany and China. Finally, the novelty and the limits of the method are discussed, as well as the results and the role of e-scooters, micromobility, and shared vehicles towards a sustainable mobility. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.00680&r=all |
| By: | Stefano Carattini; Garth Heutel; Givi Melkadze |
| Abstract: | We study climate and macroprudential policies in an economy with financial frictions. Using a dynamic stochastic general equilibrium model featuring both a pollution market failure and a market failure in the financial sector, we explore transition risk – whether ambitious climate policy can lead to macroeconomic instability. It can, but the risk can be alleviated through macroprudential policies – taxes or subsidies on banks’ assets. Then, we explore efficient climate and macroprudential policy in the long run and over business cycles. The presence of financial frictions affects the steady-state value and dynamic properties of the efficient carbon tax. Macroprudential policy alone, without a carbon tax, is not very effective at addressing the pollution externality. |
| JEL: | E32 G18 Q58 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28525&r=all |
| By: | Angela Köppl; Margit Schratzenstaller |
| Abstract: | While environmental taxes aim at making environmentally harmful behaviour more costly, the opposite is true for environmentally beneficial tax incentives. Tax incentives imply foregone public revenues to favour less polluting consumption and investment activities in order to achieve environmental policy goals. While there is a large body of theoretical literature on environmental taxes and emissions trading, the theoretical literature on environmentally beneficial tax incentives (as well as direct subsidies) is rather slim. Most of the literature in the field of beneficial tax incentives consists of empirical case studies on concrete tax incentives that have been introduced in individual countries. The paper provides a review of theoretical and empirical literature addressing the effects of environmentally beneficial tax incentives. Hereby, the review of empirical evidence on the impact of specific tax incentives to reduce greenhouse gas emissions focuses on tax incentives in the transport sector and particularly on those attached to vehicle taxation aiming at supporting the decarbonisation of the car fleet. We also summarise the sparse empirical evidence on tax incentives intended to support the use of public transport, green R&D, and energy efficiency. |
| Keywords: | Carbon taxation, environmental taxation, price-based instruments, tax incentives, climate policy |
| Date: | 2021–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2021:i:621&r=all |
| By: | Grover, Charu (Shaheed Bhagat Singh College, University of Delhi, India); Bansal, Sangeeta (Centre for International Trade and Development, Jawaharlal Nehru University, India); Martinez-Cruz, Adan L. (CERE - the Center for Environmental and Resource Economics) |
| Abstract: | India's contribution to global CO2 emissions makes it a priority case for policy makers worldwide. The Indian government is considering the adoption of energy labels for new passenger cars to tackle CO2 emissions. This paper's first aim is to asses New Delhi's car buyers' preferences for cars displaying energy labels. To do so, a discrete choice experiment (DCE) has been designed to document both WTP for energy efficiency (212 USD for one kilometer per liter) and WTP for the best efficiency label (4.93 thousand USD). The informational nudge embedded in a labeling system may not be enough to boost uptake of efficient cars. Thus this paper investigates the potential of combining a labeling system and car driving restrictions. Via a split-sample approach, this paper documents an increase of 2.55 thousand USD in stated WTP for the best efficiency label. This number can be interpreted as reflecting the costs imposed by the driving restrictions on car drivers. Under this interpretation, 2.55 thousand USD fall within the range of estimations reported in previous studies. The results in this paper suggest that a combination of driving restrictions and a labeling system may deliver an increase in energy efficient cars in New Delhi. |
| Keywords: | Energy labeling system; driving restrictions; willingness to pay; discrete choice experiment; split-sample approach; New Delhi. |
| JEL: | Q48 Q50 |
| Date: | 2021–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:slucer:2021_004&r=all |
| By: | Polemis, Michael; Fotis, Panagiotis; Tzeremes, Panagiotis; Tzeremes, Nickolaos |
| Abstract: | The objective of this study is to examine the convergence patterns of decoupling factors of three environmental hazards (CO2, SO2, and NOX) from economic growth across the U.S. regions over the period 1990-2017. By applying the Phillips and Sul (2007, 2009) methodology, we unravel convergence clubs and illustrate their transition paths. The generic algorithm rejects the convergence hypothesis for the whole sample, justifying the existence of several formulated convergence clubs among the US regions. The empirical findings further elucidate the existence of two “large” spatial clusters concerning the CO2 and SO2 decoupling indicators (Club 2 and Club 1 respectively). Lastly, the transition paths validate the P-S convergence test results, while we provide some useful policy implications. |
| Keywords: | Decoupling; Ecological footprint; Convergence analysis; Air pollutants; Economic growth. |
| JEL: | O44 O51 R11 |
| Date: | 2021–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106412&r=all |
| By: | Toptancı, Ali İskan |
| Abstract: | Increases in oil prices; It is due to the recession, periods of extreme inflation, reduced productivity, and low economic growth. In this study, the arguments supporting such views will be examined. It will first examine how it evolves in response to conceptual challenges in assigning a central role to oil price shocks in explaining macroeconomic fluctuations. Second, the idea that at least large oil price movements can be viewed as external to the US macroeconomy will be challenged. The evidence that has led many economists to give the oil market a central role in external political events will be examined critically. Third, even if none of the oil shocks are associated with stagflation of the US economy, the continuation of the oil shock, the US stagflation of the 1970s, is the idea that only oil price shocks can explain. This is not the case |
| Keywords: | Oil,Oil Price Shock,U.S.,Stagflation,Macroeconomics |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:231406&r=all |
| By: | Schlund, David (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Schulte, Simon (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Sprenger, Tobias (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The interest in low-carbon hydrogen technologies is growing fast in politics and the economy.The ramp-up of a hydrogen market is a critical phase, which requires the engagement and coordination of many heterogeneous stakeholders. A better understanding of who these stakeholders are and what relationships, chances, and risks they perceive is crucial to guide a hydrogen market ramp-up. This paper conducts a stakeholder analysis for Germany with a focus on the market ramp-up period. Interviews with 36 hydrogen experts, literature, and stakeholders from 78 real-world hydrogen research and demonstration projects are analysed with qualitative content analysis and social network analysis. In total, 49 stakeholder groups are identified and defined accordingly. Our results indicate that established stakeholders’ roles will significantly change in a future hydrogen market. Risks range from economic and supply chain risks to impacts on international policy. Chances are found along economic, ecological, and political dimensions. Political intervention during the market ramp-up should mostly focus on the economic gap between low-carbon hydrogen and fossil alternatives and on prioritising the allocation of scarce hydrogen supply on heterogeneous demand. Simultaneously, a long-term strategy should be envisaged to guarantee a competitive and non- discriminatory hydrogen market in the future. |
| Keywords: | Hydrogen market; Hydrogen economy; Stakeholder analysis |
| JEL: | L52 L94 L95 M21 Q40 Q42 |
| Date: | 2021–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2021_002&r=all |
| By: | Martin, R.; de Haas, Ralph (Tilburg University, Center For Economic Research); Muuls, Mirabelle; Schweiger, Helena |
| Keywords: | Financial frictions; management practices; CO2 emissions; energy efficieny |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiucen:d95224cf-6fd8-486b-b9d7-4bda91530e50&r=all |
| By: | Abigail Morton; Yü Wang; Wendong Zhang (Center for Agricultural and Rural Development (CARD)) |
| Abstract: | Demand response uses smart technologies to lower peak electricity load by either shifting demand to non-peak hours or directly shaving peak demand. DR is a fast-growing market in which commercial and industrial customers are the primary providers of resources; however, DR helps heavy electrical consumers save energy and avoid demand charges, and it helps utilities save money and deter investment on expensive transmission and distribution lines. DR also has great potential to balance renewables by providing ramping and flexibility services to the electricity market. This capacity is increasingly important to electrical grids, as is the integration of more renewable energy. This study assesses the potential demand response resources that utilities can harness from residential customers. We use a contingent valuation method survey to discover residential customers' willingness to accept demand response programs offered by utilities. We test for three types of demand response programs: air conditioner cycling, smart thermostats, and an automated real-time pricing program. Air conditioner cycling uses switch controls to turn off customers' air conditioning units for a short period. Smart thermostats allow utilities to adjust the setting point of customers' thermostats to reduce peak load. Automated real-time pricing is a hypothetical program that allows changing load in response to real-time electricity prices. In the survey, we describe how the program works and solicit willingness to participate if offered an annual incentive or no incentive. In addition to the willingness to accept questions, we also collect information on occupancy, home characteristics, knowledge about demand response, prior experience with smart technologies, demographics, and relevant attitudes, such as trust in utilities, attitudes toward demand response, willingness to give a utility control of appliances, and attitudes on energy conservation and climate change. These questions provide important measurements of key factors that affect customers' willingness to participate in demand response programs. From July 10 to October 30, 2020, we distributed the survey to a random sample of 3,165 Midwest residents both online and by mail. We received a total of 417 responses (60% online and 40% mail responses), a 13.1% response rate. Data from valid survey responses suggests that 50% of the respondents are willing to enroll in a demand response program. This rate suggests great potential for utilities to harness demand response resources to curb residential peak load in summer, as half of surveyed Midwest residents are willing to participate in one of the programs for a less-than-$50 annual incentive or no incentive. Overall, respondents show a varied degree of intention to participate for the three types of programs: 54% for air conditioner cycling, 50% for smart thermostats, and 46% for automated real-time pricing. This result indicates that customer participation rate drops when the demand response technology is less mature. Respondents' participation intention differs significantly when offered no incentive versus a certain level of incentive. When offered a random annual incentive from $10 to $50, 47% are willing to enroll in the program. Specifically, respondent participation intention is 38%, 47%, 48%, 43%, and 56% for programs offering a $10, $20, $30, $40, and $50 annual incentive, respectively. However, when asked about willingness to enroll without mentioning any incentive, 63% of respondents are still willing, which suggests that a low level of incentive decreases willingness to participate. Thus, offering the demand response program without incentives is more efficient at recruiting customers than offering an annual incentive of less than $50. Alternatively, the incentive has to be high enough, probably higher than $50/year, to effectively recruit customers. Respondents' willingness to give a utility control varies by time of the day, day of the week, and type of equipment/appliances. Survey data suggests about 20% of residents are willing to let utilities control their home equipment and appliances anytime of the day and an additional 3%-15% of respondents are fine with utilities controlling their appliances at different times of the day. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:ias:cpaper:21-pb31&r=all |
| By: | Zhu Liu; Zhu Deng; Philippe Ciais; Jianguang Tan; Biqing Zhu; Steven J. Davis; Robbie Andrew; Olivier Boucher; Simon Ben Arous; Pep Canadel; Xinyu Dou; Pierre Friedlingstein; Pierre Gentine; Rui Guo; Chaopeng Hong; Robert B. Jackson; Daniel M. Kammen; Piyu Ke; Corinne Le Quere; Crippa Monica; Greet Janssens-Maenhout; Glen Peters; Katsumasa Tanaka; Yilong Wang; Bo Zheng; Haiwang Zhong; Taochun Sun; Hans Joachim Schellnhuber |
| Abstract: | The diurnal cycle CO$_2$ emissions from fossil fuel combustion and cement production reflect seasonality, weather conditions, working days, and more recently the impact of the COVID-19 pandemic. Here, for the first time we provide a daily CO$_2$ emission dataset for the whole year of 2020 calculated from inventory and near-real-time activity data (called Carbon Monitor project: https://carbonmonitor.org). It was previously suggested from preliminary estimates that did not cover the entire year of 2020 that the pandemics may have caused more than 8% annual decline of global CO$_2$ emissions. Here we show from detailed estimates of the full year data that the global reduction was only 5.4% (-1,901 MtCO$_2$, ). This decrease is 5 times larger than the annual emission drop at the peak of the 2008 Global Financial Crisis. However, global CO$_2$ emissions gradually recovered towards 2019 levels from late April with global partial re-opening. More importantly, global CO$_2$ emissions even increased slightly by +0.9% in December 2020 compared with 2019, indicating the trends of rebound of global emissions. Later waves of COVID-19 infections in late 2020 and corresponding lockdowns have caused further CO$_2$ emissions reductions particularly in western countries, but to a much smaller extent than the declines in the first wave. That even substantial world-wide lockdowns of activity led to a one-time decline in global CO$_2$ emissions of only 5.4% in one year highlights the significant challenges for climate change mitigation that we face in the post-COVID era. These declines are significant, but will be quickly overtaken with new emissions unless the COVID-19 crisis is utilized as a break-point with our fossil-fuel trajectory, notably through policies that make the COVID-19 recovery an opportunity to green national energy and development plans. |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2103.02526&r=all |
| By: | David Ardia; Keven Bluteau; Kris Boudt; Koen Inghelbrecht (-) |
| Abstract: | We empirically test the prediction of Pastor, Stambaugh, and Taylor (2020) that green firms outperform brown firms when concerns about climate change increase unexpectedly, using data for S&P 500 companies from January 2010 to June 2018. To capture unexpected increases in climate change concerns, we construct a Media Climate Change Concerns index using news about climate change published by major U.S. newspapers. We find that when concerns about climate change increase unexpectedly, green firms’ stock prices increase, while brown firms’ decrease. Further, using topic modeling, we conclude that climate change concerns affect returns both through investors updating their expectations about firms’ future cash flows and through changes in investors’ preferences for sustainability |
| Keywords: | Asset Pricing, Climate Change, Sustainable Investing, ESG, Greenhouse Gas Emissions, Sentometrics, Textual Analysis |
| JEL: | G11 G18 Q54 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:21/1011&r=all |
| By: | Umed Temursho (IOpedia, Seville, Spain); Matthias Weitzel (European Commission - JRC); Toon Vandyck (European Commission - JRC) |
| Abstract: | This report enriches economy-wide modelling with household-level microdata to assess the distributional impacts of climate policy in the broader context of the EU Green Deal. The first part of the report provides a detailed exploration of the EU Household Budget Survey data in the light of its use in analysing climate policy impacts across households with heterogeneous consumption patterns. The second part of the report describes the macro-micro framework to combine the Household Budget Survey with the JRC-GEM-E3 model. The third part studies scenarios that cover three different policy configurations –ranging from a regulation-based to a pricing-based approach – all of which reach a reduction in greenhouse gas emissions of 55% in 2030 relative to 1990. Results provide insights into the potential distributional implications across EU households of an upward revision of the 2030 targets, a key aspect in achieving a Just Transition to climate neutrality. Regulation-based policies can mitigate price changes observed by households, while pricing-based policies raise revenue that have the potential to offset regressive impacts. Careful design of targeted complementary measures will therefore be required to reconcile social and environmental sustainability. |
| Keywords: | Just Transition, Climate Policy, Distributional Impacts, Household Budget Survey, Computable General Equilibrium |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc121765&r=all |
| By: | Etienne ESPAGNE; Thi Phuong Linh HUYNH; Stéphane LAGREE; Alexis DROGOUL |
| Abstract: | How do accelerating environmental changes impact inequalities and how do rising inequalities affect in reverse environmental dynamics? This paper is built on a systematic mapping (2019-2021) studying the relationship between those two crucial aspects in five Mekong Countries: Cambodia, Laos, Myanmar, Thailand and Vietnam. 14570 scientific and grey literatures were collected and screened by title and abstract, and full text. 2355 items (1978-2020) are included for the systematic mapping. Overall, articles that directly discuss inequalities in relation with environmental changes are rare and recent. Three domains are dominant: resource access and right issues (967 items); climate change and disaster impacts (533 items); and a growing interest on pollution (299 items). Gaps in knowledge are identified in various realms. A repository is built with an open access to all abstract selected references to support further research and projects on sub-topics of the inequality environmental change nexus, and support science-based policy decisions. |
| Keywords: | Birmanie, Cambodge, Laos, Thaïlande, Vietnam |
| JEL: | Q |
| Date: | 2021–03–12 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en12270&r=all |
| By: | Langthaler, Margarita; McGrath, Simon; Ramsarup, Presha |
| Abstract: | The human capability to learn is widely regarded as one of the most important resources for achieving an environmentally and socially sustainable and equitable society. Yet, traditional institutions of learning are lagging behind in transmitting such kind of transformative skills. As for Vocational Education and Training (VET), there is still little debate on what the systemic changes of a transition to a greener economy will mean beyond the provision of specific technical skills. In this Briefing Paper, we aim at providing a critical overview of existing debates on skills for just transitions to a greener economy. In the first section, we will initially discuss the main notions of the green economies and skills discourses. Subsequently, the orthodox approach to VET will be critically analysed and we will outline suggestions for alternative approaches to sustainability and VET. In the second section, we will have a look at the policy level in summarising donor approaches and in giving a brief account of South Africa's experience investigating the responsiveness of the skills system to the green economy. Conclusions will sum up. |
| Keywords: | Green economy,green skills,vocational education and training,just transitions,transformative learning |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:oefseb:30&r=all |
| By: | Runst, Petrik; Höhle, David |
| Abstract: | Many countries have only recently introduced carbon taxation to reduce emissions and the time series data for evaluating these policies is not available yet. Consequently, we use the imposition quasi-carbon-taxes in the German transportation sector, i.e. taxes on fuel that are not calculated based on actual CO2content but which raise the implicit price of carbon emissions, to evaluate the effectiveness of environmental taxation. Our results indicate that the carbon price increase by about 66 €/t CO2led toa considerable decline of transport emissions by 0.2 to 0.35 t per person and year. Our quantitative results as well as a detailed qualitative analysis of a German car manufacturer's business reports suggests that the tax triggered an improvement in engine technology as well as an increased share of diesel engines. |
| Keywords: | Carbon taxation,transport sector,carbon emissions |
| JEL: | H23 Q48 R48 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifhwps:292021&r=all |
| By: | ; ; William B. Peterman |
| Abstract: | Uncertainty surrounding if and when the U.S. government will implement a federal climate policy introduces risk into the decision to invest in capital used in conjunction with fossil fuels. To quantify the macroeconomic impacts of this climate policy risk, we develop a dynamic, general equilibrium model that incorporates beliefs about future climate policy. We find that climate policy risk reduces carbon emissions by causing the capital stock to shrink and become relatively cleaner. Our results reveal, however, that a carbon tax could achieve the same reduction in emissions at less than half the cost. |
| Date: | 2021–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:90131&r=all |
| By: | Patrick Bolton; Marcin Kacperczyk |
| Abstract: | Companies are exposed to carbon-transition risk as the global economy transitions away from fossil fuels to renewable energy. We estimate the market-based premium associated with this transition risk at the firm level in a cross-section of over 14,400 firms in 77 countries. We find a widespread carbon premium—higher stock returns for companies with higher levels of carbon emissions (and higher annual changes)—in all sectors over three continents, Asia, Europe, and North America. Short-term transition risk is greater for firms located in countries with lower economic development, greater reliance on fossil energy, and less inclusive political systems. Long-term transition risk is higher in countries with stricter domestic, but not international, climate policies. However, transition risk cannot be explained by greater exposure to physical (or headline) risk. Yet, raising investor awareness about climate change amplifies the level of transition risk. |
| JEL: | G12 Q51 Q54 |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28510&r=all |