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on Energy Economics |
| By: | Ricardo Gonçalves (Católica Porto Business School, Universidade Católica Portuguesa); Flávio Menezes (School of Economics, University of Queensland, Brisbane, Australia) |
| Abstract: | This paper estimates the market-wide impact of renewables on Australias National Electric- ityMarket (NEM) wholesale prices from 2009 to 2020. The goal is to understand the medium-run impact of renewable generation, as opposed to the short-run impact of weather-driven changes in renewable output. The focus is, therefore, on the relationship between renewable generation (and its growth) and wholesale prices over a long period of time. In particular, we exploit the half-hourly nature of wholesale price setting in the NEM to uncover the impact of solar and wind daily production on the distribution of prices during the day. In contrast to the literature that focuses on the short-run impact of renewables, our results suggest that the daily solar production has a positive, although not always signi cant, impact on wholesale prices throughout the day during an early development stage of solar generation. The results for wind are more in line with the existing literature: the daily production of wind has a small, negative impact on wholesale prices for most of the day. These results are consistent with optimization studies that show that the least-cost generation mix favours wind generation over solar. The reason for this is that the production of solar is highly self-correlated, since it is available during daylight hours, whereas wind generation exhibits less correlation, and therefore is subject to more geographical smoothing. |
| Keywords: | renewables, energy-only markets, prices. |
| JEL: | D4 L9 |
| Date: | 2021–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:640&r=all |
| By: | Lazarus, Jessica; Bauer, Gordon PhD; Greenblatt, Jeffery PhD; Shaheen, Susan PhD |
| Abstract: | This research investigates strategies to improve the mobility of low-income travelers by incentivizing the use of electric SAVs (SAEVs) and public transit. We employ two agent-based simulation engines, an activity-based travel demand model of the San Francisco Bay Area, and vehicle movement data from the San Francisco Bay Area and the Los Angeles Basin to model emergent travel behavior of commute trips in response to subsidies for TNCs and public transit. Sensitivity analysis was conducted to assess the impacts of different subsidy scenarios on mode choices, TNC pooling and match rates, vehicle occupancies, vehicle miles traveled (VMT), and TNC revenues. The scenarios varied in the determination of which travel modes and income levels were eligible to receive a subsidy of $1.25, $2.50, or $5.00 per ride. Four different mode-specific subsidies were investigated, including subsidies for 1) all TNC rides, 2) pooled TNC rides only, 3) all public transit rides, and 4) TNC rides to/from public transit only. Each of the four modespecific subsidies were applied in scenarios which subsidized travelers of all income levels, as well as scenarios that only subsidized low-income travelers (earning less than $50,000 annual household income). Simulations estimating wait times for TNC trips in both the San Francisco Bay Area and Los Angeles regions also revealed that wait times are distributed approximately equally across low- and high-income trip requests. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2021–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt5f1359rd&r=all |
| By: | Kenneth Gillingham; Marten Ovaere; Stephanie M. Weber |
| Abstract: | Will a carbon tax improve the welfare consequences of policies to promote electric vehicles? This paper examines when a complementarity could exist between carbon pricing and high electric vehicle adoption. We analyze electricity generation in recent years to show that in several regions, carbon pricing interacts with electric vehicle adoption. Under moderate carbon prices like those in effect today, additional electric vehicles will be more likely to be charged with coal-fired generation than without carbon pricing. We confirm this finding using a detailed dynamic model that includes the transportation and power sectors. At much higher carbon prices, the effect reverses. |
| JEL: | H23 Q48 Q53 Q54 Q58 R48 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28620&r=all |
| By: | Teles Huo; Miguel St. Aubyn |
| Abstract: | The article analyses the relationship between electricity consumption, useful exergy (UEx) and economic growth in Mozambique, from 1971 to 2014. UEx data for Mozambique was constructed following the methodology of Miller, et al. (2016): first, the conversion of final electricity consumption (FEC) into its exergy equivalent; second, the association of the exergy data with exergy categories, based on useful uses; and third, the determination of UEx applying efficiencies corresponding to each category of use. Efficiency scores to be applied depend strongly from local conditions, both in terms of the average annual ambient temperature (especially for heat production efficiencies), and in the industrial dynamics and standards (for mechanical work). The FEC data are expressed in GWh, obtained from the International Energy Agency database (IEA), which includes for Mozambique (until the date of writing) data covering the period from 1971 to 2014. Unrestricted VAR models were estimated which allow other types of effects to be captured. This option is particularly important for an economy like that of Mozambique, which underwent different phases and restructuring processes during the period under study. Results show that, in the period under analysis, there was a huge increase in FEC, from 2000 and 2001, as the effect of the start-up of the aluminium smelter company, Mozal. Despite the growth trend of UEx in the trade and services sector, total UEx continued to be strongly dominated by the UEx of the industry sector. The greatest contribution to total UEx came from the mechanical work of the industry sector, followed by the production of heat at high temperatures. UEx growth accelerated in 2000 and 2001 with the entry of the Mozal aluminium company, due to the importance of heat production at high temperatures. Our FEC model shows that economic growth in Mozambique has not been influenced by the increase in electricity consumption. However, the growth of the economy induces FEC growth. The UEx model indicates that there is no relationship between UEx and economic growth. The growth of the economy does not influence the UEx, unlike the result from FEC model. |
| Keywords: | economic growth, electricity consumption, energy; exergy; Mozambique, useful exergy |
| JEL: | C32 O13 O47 Q43 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp01702021&r=all |
| By: | Rabab Haider; David D'Achiardi; Venkatesh Venkataramanan; Anurag Srivastava; Anjan Bose; Anuradha M. Annaswamy |
| Abstract: | The increasing penetration of intermittent renewables, storage devices, and flexible loads is introducing operational challenges in distribution grids. The proper coordination and scheduling of these resources using a distributed approach is warranted, and can only be achieved through local retail markets employing transactive energy schemes. To this end, we propose a distribution-level retail market operated by a Distribution System Operator (DSO), which schedules DERs and determines the real-time distribution-level Locational Marginal Price (d-LPM). The retail market is built using a distributed Proximal Atomic Coordination (PAC) algorithm, which solves the optimal power flow model while accounting for network physics, rendering locationally and temporally varying d-LMPs. A numerical study of the market structure is carried out via simulations of the IEEE-123 node network using data from ISO-NE and Eversource in Massachusetts, US. The market performance is compared to existing retail practices, including demand response (DR) with no-export rules and net metering. The DSO-centric market increases DER utilization, permits continual market participation for DR, lowers electricity rates for customers, and eliminates the subsidies inherent to net metering programs. The resulting lower revenue stream for the DSO highlights the evolving business model of the modern utility, moving from commoditized markets towards performance-based ratemaking. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2102.01269&r=all |
| By: | Rodrigo, Pedro M.; Gutiérrez, Sebastián; Micheli, Leonardo; Fernández, Eduardo F.; Almonacid, Florencia |
| Abstract: | In this paper, the soiling impact on photovoltaic systems in Aguascalientes, in central Mexico, an area where 1.4GWp of new photovoltaic capacity is being installed, is characterised experimentally. A soiling rate of -0.16 %/day in the dry season for optimally tilted crystalline silicon modules, and a stabilization of the soiling losses at 11.2% after 70 days of exposure were observed. With this data, a first of its kind novel method for determining optimum cleaning schedules is proposed based on minimising the levelised cost of energy. The method has the advantages compared to other existing methods of considering the system investment cost in the determination of the optimum cleaning schedule. Also, it does not depend on economic revenue data, which is often subject to uncertainty. The results show that residential and commercial systems should be cleaned once per year in Aguascalientes. On the other hand, cleaning intervals from 12 to 31 days in the dry season were estimated for utility-scale systems, due to the dramatic decrease of cleaning costs per unit photovoltaic capacity. We also present a comparative analysis of the existing criteria for optimising cleaning schedules applied to the same case study. The different methods give similar cleaning intervals for utility-scale systems and, thus, the choice of a suitable method depends on the availability of information. |
| Keywords: | Cleaning schedule; Crystalline silicon; Levelised cost of energy; Mexico; Photovoltaic; Soiling |
| JEL: | Q4 |
| Date: | 2020–09–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104173&r=all |
| By: | Mathias Reynaert (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); James M. Sallee (Unknown) |
| Abstract: | Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. This harms buyers by eroding information, but it benefits them when cost savings are passed through into prices. We develop a model that highlights this tension and use it to analyze gaming of automobile carbon emission ratings in the EU. We document startling increases in gaming using novel data. We then analyze the effects of gaming in calibrated simulations. Over a wide range of parameters, we find that pass through substantially outweighs information distortions; on net, buyers benefit from gaming, even when they are fooled by it. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03167777&r=all |
| By: | Devi Brands (Vrije Universiteit Amsterdam); Erik Verhoef (Vrije Universiteit Amsterdam); Jasper Knockaert (Vrije Universiteit Amsterdam) |
| Abstract: | With congestion being one of the most important externalities in transportation, it remains important to investigate effective and politically feasible solutions for it. We have conducted an 8-week experiment with tradable mobility permits, specifically applied to the use of parking facilities at a Dutch employer. We combine actual mobility behaviour with trading behaviour and survey responses of participants and non-participating employees of the same company. We have analysed the choice to participate in a voluntary experiment, and the behavioural response to tradable permits. Our results provide suggestive evidence that active participants do adjust their behaviour as intended. Furthermore, participation takes less time than people anticipate, and permits are viewed as a fairer and better functioning alternative to paid parking. |
| JEL: | C93 R41 R48 |
| Date: | 2021–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20210029&r=all |
| By: | Cedic, Samir; Mahmoud, Alwan; Manera, Matteo; Uddin, Gazi Salah |
| Abstract: | The aim of this paper is to analyze the relationship between different types of uncertainty and stock returns of the renewable energy and the oil & gas sectors. We use the quantile regression approach developed by Koenker and d’Orey (1987; 1994) to assess which uncertainties are the potential drivers of stock returns under different market conditions. We find that the bioenergy and the oil & gas sectors are most sensitive to uncertainties. Both sectors are affected by financial, euro currency, geopolitical and economic policy uncertainties. Our results have several policy implications. Climate policy makers can prioritize policies that support bioenergy in order to reduce the potentially negative effects of uncertainties on bioenergy investment. Investors aiming to diversify their portfolio should be aware that many uncertainties are common drivers of bioenergy and oil & gas returns, the connectedness between assets of these energy types could therefore increase when uncertainty increases. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2021–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:310388&r=all |
| By: | Hollingsworth, Alex; Konisky, David; Zirogiannis, Nikos |
| Abstract: | Excess emissions are air pollution releases that exceed permitted levels and occur during facility start-ups, shutdowns, or malfunctions. While they are violations of the federal Clean Air Act, states have historically granted violating facilities automatic exemptions; limiting enforcement and weakening existing regulation. Recent efforts to harmonize state and federal rules have ignited debate surrounding optimal excess emissions regulation. Using Texas data from 2002-2017, we show robust evidence on the costs of excess emissions. We find that excess emissions increase harmful nearby pollution and elderly mortality, and are responsible for an average of 35 annual deaths in Texas alone. Using excess emissions as an instrument for ozone concentrations, we find that a 10% increase in monthly average ozone increases elderly mortality by 3.9%, driven by increased deaths in the oldest age groups. |
| Date: | 2021–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:gc73x&r=all |
| By: | Yves Crozet (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique, IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon) |
| Abstract: | La neutralité carbone en 2050 exige de réduire rapidement les émissions de CO2. Pour y parvenir, il est nécessaire (comme l'a recommandé le rapport Quinet en 2019) d'accroître sensiblement la valeur de la tonne de CO2. Quelles en sont les implications ? |
| Keywords: | Émissions de gaz à effet de serre,Tonne de carbone,Valeur |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03161925&r=all |
| By: | Ayanda Pamella Deliwe (Nelson Mandela University, University Way, Summerstrand, 6019, Port Elizabeth, South Africa Author-2-Name: Shelley Beryl Beck Author-2-Workplace-Name: Nelson Mandela University, Oxford Brookes University, Headington Campus, Oxford, OX3 0BP, UK Author-3-Name: Elroy Eugene Smith Author-3-Workplace-Name: Nelson Mandela University, University Way, Summerstrand, 6019, Port Elizabeth, South Africa Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | Objective - This paper sets out to assess perceptions of food retailers regarding climate change, greenhouse gas emission and sustainability in the Nelson Mandela Bay region of South Africa. The primary objective of this study is to investigate the food retailers' greenhouse gas emissions strategies. Climate change catastrophic potential and the harmful effect that it has had on the community and businesses has led to it being given attention from social media and in literature. Methodology/Technique - This paper covered a literature review that provided the theoretical framework. The empirical study that was carried out included self-administered questionnaires which were distributed to 120 food retailers who were selected from the population using convenience sampling. Findings - The results revealed that most of the respondents were neutral towards the impact of operational factors regarding GHG emission in the food retail sector. Novelty - There is limited research that has been conducted among food retailers from the designated population. The study provided guidelines that will be of assistance to food retailers when dealing with climate change and greenhouse gas emissions impact in the food retail sector. Type of Paper - Empirical. |
| Keywords: | Climate Change; Food Retailers; Greenhouse Gas Emissions; Perceptions; Strategies; Sustainability |
| JEL: | L66 Q54 Q59 |
| Date: | 2021–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jber197&r=all |
| By: | Raheem, Ibrahim; Tiwari, Aviral; Balsalobre-Lorente, Daniel |
| Abstract: | This study explores the role of the information and communication technology (ICT) and financial development (FD) in both carbon emissions and economic growth for the G7 countries for the period 1990 to 2014. Using PMG, we found that the ICT has a long-run positive effect on emissions, while FD is a weak determinant. The interactive term between the ICT and FD produces negative coefficients. Also, both the variables are found to impact negatively on economic growth. However, their interaction shows that they have mixed effect on economic growth, i.e., positive in the short run and negative in the long run. Policy implications were designed based on these results. |
| Keywords: | T . Financial development . Carbon emissions . Economic growth . G7 countries |
| JEL: | C0 O3 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105605&r=all |
| By: | Karen Clay; Edson R. Severnini; Xiaochen Sun |
| Abstract: | In the absence of first-best climate policy, energy efficiency has figured prominently among strategies to reduce carbon emissions. One of the most sought-after green certification in the building sector is the internationally recognized Leadership in Energy & Environmental Design (LEED). This paper examines the effects of LEED certification on energy efficiency in federally owned buildings. Using propensity score matching and difference in differences models, we find no effect of LEED certification on average energy consumption. This reflects the fact that energy use is one of a number of attributes that receives scores under the LEED program. Buildings with above average energy scores have greater energy efficiency post-certification. Some other attributes, notably higher water scores, decrease energy efficiency post-certification. Trade-offs across LEED attributes account for the absence of energy savings on average. If energy efficiency is the primary policy goal, LEED certification may not be the most effective means to reach that goal. |
| JEL: | O31 Q41 Q48 Q52 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28612&r=all |
| By: | Claude Crampes (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas-Olivier Léautier (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Tradable certificates are a good tool to promote economic activities when they increase the social surplus. White certificates are counterproductive, because although they encourage activities aimed at reducing energy consumption, these activities are ‘credence goods', i.e. goods whose real quality cannot be verified. They therefore lead to opportunistic behavior by professionals of building renovation and heating system installation. In order to make the system virtuous, certificates should guarantee the results actually measured, instead of ex ante technical evaluations. Given the cost of controls, the accuracy of the declarations should be ensured by heavy penalties for infringements, which is not feasible when companies are too small. Concentration in the building renovation sector should therefore be encouraged, respecting a trade-off between the collective benefit of having large companies responsible for energy performance and the risk of abuse of a dominant position or collusion by these same companies |
| Abstract: | Les certificats négociables sont un bon outil de promotion des activités économiques quand celles-ci permettent d'améliorer le surplus social. Les certificats blancs, parce qu'ils encouragent les activités destinées à réduire la consommation d'énergie et parce que ces activités sont des "biens de confiance", c'est-à-dire des biens dont la qualité réelle ne peut pas être vérifiée, sont contreproductifs. Ils suscitent des comportements opportunistes de la part des professionnels de la rénovation des bâtiments et de l'installation des systèmes de chauffage. Pour rendre le système vertueux, il faudrait que les certificats garantissent les résultats effectivement mesurés et non des évaluations techniques faites ex ante. Compte tenu du coût des contrôles, la sincérité des déclarations devrait être assurée par de lourdes sanctions en cas d'infractions, ce qui n'est pas réalisable quand les entreprises sont trop petites. Il faudrait donc encourager une concentration dans le secteur de la rénovation des bâtiments en respectant un arbitrage entre avantage collectif d'avoir de grosses entreprises responsables des performances énergétiques et risques d'abus de position dominante ou de collusion sur le marché par ces mêmes entreprises. |
| Keywords: | Regulations,Consumer welfare,Economic analysis,Economic efficiency,Concentration (unilateral effects),Dominant position (abuse),Relevant market,Price,Energy,Bien-être du consommateur,Analyse économique,Efficience économique,Concentration (effets unilatéraux),Position dominante (abus),Marché pertinent,Prix,Energie |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03164801&r=all |
| By: | Chepeliev, Maksym; Israel Osorio Rodarte; Dominique van der Mensbrugghe |
| Abstract: | While bringing multiple benefits for the environment, achievement of the stringent global greenhouse gas emissions reduction target, like the one outlined in the Paris Climate Agreement, is associated with significant implementation costs and could impact different dimensions of human well-being, including welfare, poverty and distributional aspects. In this paper, we analyze the poverty and distributional impacts of different carbon pricing mechanisms consistent with reaching the Paris Agreement targets. We link a global recursive dynamic computable general equilibrium model ENVISAGE with the GIDD microsimulation model and explore three levels of mitigation effort and five carbon pricing options (trade coalitions). Results suggest that while there is a higher incidence of poverty in all scenarios, mainly driven by lower economic growth, Nationally Determined Contribution (NDC) policies result in progressive income distribution at the global level. Such progressivity is caused not only by lower relative prices of food versus non-food commodities, but also by a general decline in skill wage premia. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:gta:workpp:6194&r=all |
| By: | Massimiliano Mazzanti (University of Ferrara; SEEDS, Italy); Marco Modica (Gran Sasso Science Institute, Italy.); Andrea Rampa (Ministry of Economy and Finance – Directorate of Economic and Fiscal Studies; SEEDS, Italy) |
| Abstract: | The degree of social acceptance of biogas as a renewable green energy source is still somewhat disregarded. Although many initiatives have focused on the construction of new biogas plants around the world, with Italy as a relevant actor in the field, local protests on the construction of new plants are frequent in some areas. This study aims to analyse the determinants of citizens’ perceptions regarding the construction of new biomass plants in their neighbouring areas. In particular, the focus is on prior knowledge of the production process of biogas as well as on other individual characteristics. The investigation is based on two repeated surveys administered to citizens living in proximity to two Italian local areas in which the construction of new large biogas plants is planned: the provinces of Oristano in Sardinia and Andria in Apulia. The first survey analyses the main variables correlated with the degree of biogas acceptability with a focus on the role played by biogas knowledge. The second set of surveys focuses on the role of participatory processes and information campaigns undertaken by policy makers and environmental associations to increase the social acceptance of communities regarding the construction of new biogas plants. |
| Keywords: | Biomass, Local Acceptance, Local public goods, waste management, renewable energy, Circularity |
| JEL: | Q42 H49 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0221&r=all |
| By: | Lomonosov, Daniil; Polbin, Andrey; Fokin, Nikita |
| Abstract: | In this work we build a Bayesian vector autoregression model to estimate the impact of global economic activity shocks, supply shocks in the global oil market, as well as speculative oil shocks on key macroeconomic variables of the Russian economy: GDP, household consumption, fixed capital investment, import, export, real effective exchange rate, real wages and income, MIACR interest rate and GDP deflator. The model uses real oil prices, the index of global economic activity, oil production and oil inventories as exogenous variables. The model parameters are estimated for the period from Q1 1999 to Q4 2019. The dynamics of four exogenous variables is described using a separate external vector autoregression model, which is estimated over an extended time period from Q1 1974 to Q4 2019 in order to more accurately estimate its parameters and identify shocks. Shocks are identified based on the approach proposed in [Kilian, Murphy, 2014], which uses sign restrictions and restrictions on the price elasticities of oil demand and oil supply. According to estimates of impulse responses, such variables as real household consumption, imports, and the exchange rate respond positively and statistically significantly to all three shocks leading to an increase in oil prices. However, a shock to global economic activity has a stronger impact. With an increase in oil prices for real GDP, investment and exports a stable and statistically significant positive impact is observed only when this price increase is due to a shock to global economic activity. The work also estimates a forecast error variance decomposition and a historical decomposition of the domestic variables by shocks, which indicate the prevailing role of shocks in global economics activity in the dynamics of Russian macroeconomic variables. |
| Keywords: | Russian economy; oil prices; GDP; consumption; investment; exchange rate; export; global economic activity shock; oil supply shock; speculative oil demand shock |
| JEL: | C32 E32 F41 Q43 |
| Date: | 2020–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106019&r=all |
| By: | Tiwari, Aviral; Nasir, Muhammad Ali; shahbaz, Muhammad; Raheem, Ibrahim |
| Abstract: | This study analyses the convergence of CO2 emissions at state-level in the USA for the period from 1976 to 2014 in a nonlinear and novel empirical framework. In so doing, we have applied Pesaran’s (2007) test of pair-wise approach to testing convergence which gives in general what are the rejection frequencies and thus provides evidence of convergence. At the aggregate level, we also applied Chi-Young et al. (2006) half-life convergence test and the KPSS test with Fourier transformation which states are converging towards a cross-section average. Finally, we also adopted club convergence approach developed by Phillips and Sul (2007) to identify if the states are converging towards a club and last but not least, we applied Schnurbus et al., 2017 test to find if there is possible evidence if club merging. We make two contributions to the literature: (i) we conduct a country-specific analysis by focusing on the US; (ii) we consider both convergence and club convergence. Our overall results from the Pesaran’s (2007) pair-wise approach of convergence indicates that about 35% of the time the null of a unit root is rejected when ADF test is used and about 22% of the time null is rejected when ADF-GLS is used (irrespective of AIC or SBIC criterion). These results are also supported by KPSS stationary test which shows that null is rejected about 70e80% times. However, when Fourier function is incorporated in the KPSS test we find that the null hypothesis of stationarity is rejected only for Florida, Massachusetts, Montana, Nevada, New Mexico, Rhode Island, Texas indicating that only these states are non-convergent. Our overall results from club convergence (after club merging) show that USA states are forming 4 clubs. Our findings provide new insight into the convergence of CO2 emissions at the state level in the USA and thus have profound implications in terms of environmental policy setting and Per Capita Emission (PCE) allocations |
| Keywords: | CO2 emissions, Environmental management, Convergence Energy policy, Club convergence |
| JEL: | Q5 Q51 Q52 R11 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105355&r=all |
| By: | Harrison Hong; Neng Wang; Jinqiang Yang |
| Abstract: | In lieu of carbon taxes to address global warming, sustainable investment mandates are proposed to incentivize firms to achieve net-zero emissions. With underspending on mitigation due to externalities, we model the welfare consequences of these investments in firms that qualify by spending enough on decarbonization technologies. Our dynamic stochastic general equilibrium model generates several testable predictions. A cost-of- capital wedge between qualified and unqualified firms equals firm mitigation divided by its Tobin's q. Given projections of global warming and cost of decarbonization technologies, we calculate the mandate size and cost-of-capital wedge needed to meet net-zero targets. |
| JEL: | E20 G12 G30 H50 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28595&r=all |
| By: | Aurélie Méjean (CIRED - Centre international de recherche sur l'environnement et le développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - AgroParisTech - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique); Antonin Pottier (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Marc Fleurbaey (Princeton University); Stéphane Zuber (CNRS - Centre National de la Recherche Scientifique, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Climate change threatens irreversible and dangerous impacts, possibly leading to extinction. The most relevant trade-off then may not be between present and future consumption but between present consumption and the mere existence of future generations. To investigate this trade-off, we build an integrated assessment model that explicitly accounts for the risk of extinction of future generations. Using the class of number-dampened utilitarian social welfare functions, we compare different climate policies that change the probability of catastrophic outcomes yielding an early extinction. We analyse the role of inequality aversion and population ethics. Low inequality aversion and a preference for large populations favour the most ambitious climate policy, although there are cases where the effect of inequality aversion on the preferred policy is reversed. This is due to the fact that a higher inequality aversion both decreases the welfare loss of reducing consumption of the current generation and also decreases the welfare gain of reducing the future risk of extinction. |
| Keywords: | Climate change,catastrophic risk,Equity,Population,Climate-economy model |
| Date: | 2020–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-01599453&r=all |
| By: | Yuan Xu (Nanjing University of Economics and Finance); Yanrui Wu (Business School, The University of Western Australia); Yongli Shi (Nanjing University of Economics and Finance) |
| Abstract: | This paper employs a difference-in-difference-in-difference approach to examine the emission reduction and foreign direct investment nexus in China. It combines a firm-level dataset with emission reduction target statistics at city-level. The findings indicate that stringent environmental regulation is associated with the fall of the output of foreign firms in general and the shrinking of pollution-intensive industries in cities with heavy emission reduction pressure in particular. It is also shown that the location choice of foreign investment changes as emission reduction targets at city-level vary. Finally it is found that environmental regulation helps improve the structure of foreign direct investment and hence contributes to industrial upgrading in the economy. |
| Keywords: | Emission reduction; foreign direct investment; environmental regulation; DDD method; China |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:21-07&r=all |
| By: | Nieddu, Marcello; Bertani, Filippo; Ponta, Linda |
| Abstract: | Digital transformation and sustainability transition are complex phenomena characterized by fun-damental uncertainty. The potential consequences deriving from these processes are the subject of open de-bates among economists and technologists. In this respect, adopting a modelling and simulation approachrepresents one of the best solution in order to forecast potential effects linked to these complex phenom-ena. Agent-based modelling represents an appropriate paradigm to address complexity. This research aimsat showing the potential of the large-scale macroeconomic agent-based model Eurace in order to investigatechallenges like sustainability transition and digital transformation. This paper discusses and compares resultsof previous works where the Eurace model was used to study the digital transformation, while it presents newresults concerning the framework on the sustainability transition, where a climate agent is introduced to ac-count the climate economy interaction. As regards the digital transformation, the Eurace model is able to cap-ture interesting business dynamics characterizing the so-called increasing returns world and, in case of highrates of digital technological progress, it shows a significant technological unemployment. As regard the sus-tainability transition, it displays a rebound effect on energy savings that compromises efforts to reduce greenhouse gases emissions via electricity efficiency improvements. Furthermore, it shows that a carbon tax couldbe not sufficient to decouple economy from carbon consumption, and that a feed-in tariff policy fosteringrenewable energy production growth may be more effective. |
| Keywords: | Sustainability; Climate change mitigation policies; Digital Transformation; Technologicalunemployment; Agent-Based Modelling |
| JEL: | C63 O33 Q43 Q54 |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106943&r=all |
| By: | Era Dabla-Norris; James Daniel; Masahiro Nozaki; Cristian Alonso; Vybhavi Balasundharam; Matthieu Bellon; Chuling Chen; David Corvino; Joey Kilpatrick |
| Abstract: | Climate change is one of the greatest challenges facing policymakers worldwide, and the stakes are particularly high for Asia and the Pacific. This paper analyzes how fiscal policy can address challenges from climate change in Asia and the Pacific. It aims to answer how policymakers can best promote mitigation, adaptation, and the transition to a low-carbon economy, emphasizing the economic and social implications of reforms, potential policy trade-offs, and country circumstances. The recommendations are grounded in quantitative analysis using country-specific estimates, and granular household, industry, and firm-level data. |
| Keywords: | Climate change;Fiscal policy;Environmental taxes;Climate policy;Asia and Pacific;Fiscal policy;Climate change;Environmental taxes;Green economy;Climate change mitigation;Climate change adaptation;Asia and the Pacific |
| Date: | 2021–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfdps:2021/007&r=all |
| By: | Mira Toumi (Université Côte d'Azur, France; GREDEG CNRS); Nathalie Lazaric (Université Côte d'Azur; GREDEG-CNRS) |
| Abstract: | We investigate the complementarity between diverse behavioral tools called "boosts" (through information provision) and "goal setting" (ambitious or modest goals) in a field experiment in the Principality of Monaco which ran from December 2018 to May 2019. We collected data from 77 households in four groups: ambitious energy reduction goal combined with information (treatment 1), modest energy reduction goal combined with information (treatment 2), information only (treatment 3) and a control group (treatment 4). Treatments 1 and 2 increase the chances towards reduced energy consumption. We show that a modest but more realistic energy saving goal generates better energy conservation performance when combined with “boosts” (treatment 2). We explore the link between behavioral strategies and the household’s environmental concern in the context of the new ecological paradigm (NEP). The efficiency of the treatments depends heavily on the NEP profile. Households with a high NEP profile are more likely to reduce their electricity consumption whereas as those with a low NEP profile will not respond to behavioral interventions. |
| Keywords: | Boost, nudges, goal setting, energy consumption, field experiment, environmental profile |
| JEL: | C93 D04 D83 D91 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2021-17&r=all |
| By: | Pan, Alexandra; Shaheen, Susan PhD |
| Abstract: | Shared mobility is gaining traction in the transportation community as a potentially more environmentally friendly alternative to automobile travel and complement to public transit. However, adoption and use of shared mobility by low-income individuals lags behind other demographic groups. Additional research is needed to better understand the transportation needs of low-income travelers and how public agencies, community-based organizations, and shared mobility operators can work together to best serve those needs. This research fills gaps in understanding the potential policy strategies that could be effective at increasing the access, awareness, and use of shared mobility by low-income individuals. We employ Oakland, California as our primary study site (see Figure 1 and Table 1 for more detail). In this report, we present our findings on barriers to shared mobility from a review of existing shared mobility social equity initiatives, expert interviews (n=13) and focus groups with rent burdened residents of East Oakland (n=24). We further investigate barriers and implications for transportation use in an online survey (n=177), as well as longitudinal panel of phone and video interviews (n=31) with rent burdened Oakland residents. Rent burden refers to the percentage of income spent on rent and can more widely capture the population of Oakland residents who are struggling to keep up with rising housing costs. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2021–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt327773q9&r=all |
| By: | Vasileva, Elka; Hristova – Pesheva, Juliya |
| Abstract: | Background/importance of research topic: Environmental communications have an important role to play in legitimizing business organizations to their stakeholders and in improving the green management in the context of green economy. In the last decade, scholars have shifted focus from general environmental risk to specific climate change and social problems. Purpose/hypothesis (thesis or statement of problem): The paper examines issues related to organizations’ communications of their green and social initiatives and achievements through ISO 14 000 standards series and other voluntary initiatives at international and national level. Procedures/Data/Observations: The discussion focuses on the communication with stakeholders (employees, customers, local community, municipal authorities, suppliers, etc.) of organizations that have implemented standardized quality management, environmental and social responsibility systems. Conclusions/Applications: Conclusions are drawn about the role of standards in the effectiveness of green communications covering both the environmental and social aspects of organizational management. Implications about improving the effectiveness of green communications through ISO 14063: 2006 environmental communication guidelines for case studies in Bulgarian context are discussed. |
| Keywords: | Keywords - Green communication; ISO 14063: 2006 environmental communication guidelines; environmental management standards; green management standards; Bulgaria |
| JEL: | M0 M10 Q5 Q59 |
| Date: | 2019–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106978&r=all |
| By: | Khuc, Quy Van; Vuong, Quan-Hoang |
| Abstract: | Air pollution, willingness-to-pay, contingent valuation method, inner-city citizens, foreigners, Hanoi, Vietnam |
| Date: | 2021–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:tszfj&r=all |
| By: | Chan, Ying Tung; Zhao, Hong |
| Abstract: | Recessions associated with financial crises have become common in the US since 1990. This paper examines the importance of the financial frictions for US carbon emissions dynamics. Our empirical analysis reveals that financial market conditions have a substantial and nonlinear impact on carbon emissions dynamics. We build and estimate an environmental dynamic stochastic general equilibrium model that features financial frictions and a risk shock (a type of credit shock). The results show that: (i) the presence of financial frictions doubles the volatility of carbon emissions under positive TFP and government expenditure shocks; (ii) the risk shock generates counterfactual paths that can largely replicate the movements in emissions growth; (iii) the contribution share of the risk shock to emissions growth dynamics reaches a peak of around 50% after each recession; (iv) the optimal carbon tax rate response to shocks heavily depends on the Taylor rule specification. |
| Keywords: | Carbon tax; financial accelerator; business cycles |
| JEL: | E32 E44 Q51 |
| Date: | 2019–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106987&r=all |
| By: | Nicolas Curin; Michael Kettler; Xi Kleisinger-Yu; Vlatka Komaric; Thomas Krabichler; Josef Teichmann; Hanna Wutte |
| Abstract: | To the best of our knowledge, the application of deep learning in the field of quantitative risk management is still a relatively recent phenomenon. In this article, we utilize techniques inspired by reinforcement learning in order to optimize the operation plans of underground natural gas storage facilities. We provide a theoretical framework and assess the performance of the proposed method numerically in comparison to a state-of-the-art least-squares Monte-Carlo approach. Due to the inherent intricacy originating from the high-dimensional forward market as well as the numerous constraints and frictions, the optimization exercise can hardly be tackled by means of traditional techniques. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2102.01980&r=all |
| By: | Cedic, Samir; Mahmoud, Alwan; Manera, Matteo; Uddin, Gazi Salah |
| Abstract: | The aim of this paper is to analyze the connectedness between renewable energy (RE) sectors, the oil & gas sector and other assets using time-scale spillover approach. We find that the RE bioenergy firms are the most connected to oil & gas firms and oil prices. The bond market transmits spillover to the RE sectors, while it receives spillover from the oil & gas sector. Moreover, short-run connectedness drives the dynamic total connectedness. Since changes in bond rates mainly spillover to RE firms and not to oil & gas firms, policy makers should also be aware that changes in interest rates may impact the societal transition to a RE based energy system. Since a shock that increases connectedness in the short run will deter investors from investing in RE assets, it is important for climate policy makers to develop policies that reduce the effect of increased connectedness on RE investments. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2021–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:310361&r=all |
| By: | Tite, Caroline N J; Pontin, David; Dacre, Nicholas |
| Abstract: | Sustainability is focussed on avoiding the long-term depletion of natural resources. Under the terms of a government plan to tackle climate change, a driver for improved sustainability is the cut of greenhouse gas emissions in the UK to almost zero by 2050. With this type of change, new themes are continuously being developed which drive complex projects, such as the development of new power generation methods, which encompass challenging lead times and demanding requirements. Consideration of the implementation of strategies and key concepts, which may engender sustainability within complex projects therefore presents an opportunity for further critical debate, review, and application through a project management lens. Sustainability incorporation in project management has been documented in academic literature, with this emerging field providing new challenges. For example, project management education can provide a holistic base for the inculcation of sustainability factors to a range of industries, including complex projects. Likewise, practitioner interest and approaches to sustainability in project management are being driven by the recently Chartered Association for Project Management (APM). Whilst this body makes a significant contribution to the UK economy across many sectors, it also addresses ongoing sustainability challenges. Therefore, by drawing on research and practitioner developments, the authors argue that by connecting with the next generation through practice simulation approaches, and embedding sustainability issues within project management tools and methods, improved focus on sustainability in complex project management may be achieved. |
| Date: | 2021–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:b4gya&r=all |
| By: | Léleng Kebalo (University of Lome) |
| Abstract: | Less analyzed, the impact of world oil prices on the economy of net oil-importing countries is becoming more significant due to the increase in oil consumption. This paper analyzes the linear and the nonlinear impact of world oil price on Togo's economic sectors based on annual time series from 1970 to 2017, using an unrestricted vector autoregressive (VAR) model. With the linear impact model, the results show that the world oil price shock does not affect the value-added of the economic sectors. As expected, Togo's economic sectors fail to affect the world oil price markets, which confirms that Togo, a small net oil-importing country, has no pricing power in the world oil markets. However, by using the VAR asymmetric impact model proposed by Mork (1989), we find that the impact of world oil price on economic sectors is nonlinear. Thus, positive changes in world oil price do not affect the value-added of economic sectors considered while the negative changes in oil price contribute to improve significantly the value-added of primary and secondary sectors, but not the tertiary sector. Finally, our analysis shows that the value-added of primary and secondary sectors affect respectively the value-added of the tertiary sector. The inverse is not true. This paper recommends that Togo must seek to take benefit from all negative changes in world oil price for boosting the value-added of their economic sectors. |
| Date: | 2020–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03157689&r=all |
| By: | Essers, Dennis; Cassimon, Danny; Prowse, Martin |
| Abstract: | The COVID-19 pandemic has further fuelled problems of debt sustainability in developing countries and has sapped the fiscal resources needed to finance climate mitigation and adaptation efforts. We examine whether “debt-for-climate” swaps, instruments whereby debtor countries are relieved from their contractual debt obligations in return for local climate-related spending commitments, may be helpful in tackling worrying debt levels and climate concerns simultaneously. |
| Keywords: | debt-for-climate swaps |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:iob:apbrfs:2021001&r=all |
| By: | David S. Jacks; Martin Stuermer |
| Abstract: | We provide evidence on the dynamic effects of fuel price shocks, shipping demand shocks, and shipping supply shocks on real dry bulk freight rates in the long run. We first analyze a new dataset on dry bulk freight rates for the period from 1850 to 2020, finding that they followed a downward but undulating path with a cumulative decline of 79%. Next, we turn to understanding the drivers of booms and busts in the dry bulk shipping industry, finding that shipping demand shocks strongly dominate all others as drivers of real dry bulk freight rates in the long run. Furthermore, while shipping demand shocks have increased in importance over time, shipping supply shocks in particular have become less relevant. |
| JEL: | E30 N70 R40 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28627&r=all |
| By: | Claudia Tomasini Montenegro; Jens F. Peters; Manuel Baumann; Zhirong Zhao-Karger; Christopher Wolter; Marcel Weil |
| Abstract: | Information about the potential environmental impacts of post-lithium batteries is scarce. For this reason, this work provides a prospective life-cycle assessment of a hypothetical commercial MgS battery based on primary information obtained for a prototype cell. The Mg-S battery is found to have a good environmental performance with potential to outperform also current lithium-ion batteries in terms of environmental impacts. However, this applies only if the assumed evolutions of the cell composition are achieved together with comparable performance in terms of battery lifespan. The initial (non-optimized) prototype cell cannot compete with current LIB in terms of energy density or environmental friendliness, mainly due to the high share of non-active components, decreasing its performance substantially. The use of exclusively abundant materials with comparably low environmental impacts within the cell is the major strength of the MgS battery, leaving the energy-intensive process steps as the remaining critical contributors to the total environmental impacts i.e., the cell manufacturing and magnesium and aluminium metal production. Here, the use of renewable electricity and non-fossil sources for process heat are the keys for further improving its environmental performance. |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2104.03794&r=all |
| By: | Ryan Rafaty (Nuffield College, University of Oxford); Geoffroy Dolphin (Judge Business School, University of Cambridge); Felix Pretis (Nuffield College, University of Oxford) |
| Abstract: | We study the impact of carbon pricing on CO2 emissions across five sectors for a panel of 39 countries over 1990-2016. Using newly constructed sector-level carbon price data, we implement a novel approach to estimate the changes in CO2 emissions associated with (i) the introduction of carbon pricing regardless of the price level; (ii) the implementation effect as a function of the price level; and (iii) post-implementation marginal changes in the CO2 price. We find that the introduction of carbon pricing has reduced growth in CO2 emissions by 1% to 2.5% on average relative to counterfactual emissions, with most abatement occurring in the electricity and heat sector. Exploiting variation in carbon pricing to explain heterogeneity in treatment effects, we find an imprecisely estimated semi-elasticity of a 0.05% reduction in emissions growth per average $1/metric ton (hereafter abbreviated as: ton) of CO2. After the carbon price has been implemented, each marginal price increase of $1/tCO2 has temporarily lowered the growth rate of CO2 emissions by around 0.01%. These are disappointingly small effects. Simulating potential future emissions reductions in response to carbon price paths, we conclude that – in the absence of complementary non-pricing policy interventions – carbon pricing alone is unlikely to be sufficient to achieve emission reductions consistent with the Paris climate agreement. |
| Keywords: | Carbon Pricing, CO2 Emissions, Decarbonization, Carbon Tax, Climate Change, Climate Policy. |
| JEL: | Q43 Q48 Q54 Q58 H23 |
| Date: | 2020–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp140&r=all |
| By: | Zhu Liu; Biqing Zhu; Philippe Ciais; Steven J. Davis; Chenxi Lu; Haiwang Zhong; Piyu Ke; Yanan Cui; Zhu Deng; Duo Cui; Taochun Sun; Xinyu Dou; Jianguang Tan; Rui Guo; Bo Zheng; Katsumasa Tanaka; Wenli Zhao; Pierre Gentine |
| Abstract: | The COVID-19 pandemic has disrupted human activities, leading to unprecedented decreases in both global energy demand and GHG emissions. Yet a little known that there is also a low carbon shift of the global energy system in 2020. Here, using the near-real-time data on energy-related GHG emissions from 30 countries (about 70% of global power generation), we show that the pandemic caused an unprecedented de-carbonization of global power system, representing by a dramatic decrease in the carbon intensity of power sector that reached a historical low of 414.9 tCO2eq/GWh in 2020. Moreover, the share of energy derived from renewable and low-carbon sources (nuclear, hydro-energy, wind, solar, geothermal, and biomass) exceeded that from coal and oil for the first time in history in May of 2020. The decrease in global net energy demand (-1.3% in the first half of 2020 relative to the average of the period in 2016-2019) masks a large down-regulation of fossil-fuel-burning power plants supply (-6.1%) coincident with a surge of low-carbon sources (+6.2%). Concomitant changes in the diurnal cycle of electricity demand also favored low-carbon generators, including a flattening of the morning ramp, a lower midday peak, and delays in both the morning and midday load peaks in most countries. However, emission intensities in the power sector have since rebounded in many countries, and a key question for climate mitigation is thus to what extent countries can achieve and maintain lower, pandemic-level carbon intensities of electricity as part of a green recovery. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2102.03240&r=all |