|
on Energy Economics |
| By: | Marion Leroutier (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, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Decreasing greenhouse gas emissions from electricity generation is crucial to tackle climate change. Yet, empirically little is known on the effectiveness of economic instruments in the power sector. This paper examines the impact of the UK Carbon Price Support (CPS), a carbon tax implemented in the UK power sector in 2013. Compared to a synthetic control unit built from other European countries, emissions from the UK power sector declined by 26 percent on an average year between 2013 and 2017. Bounds on the effects of potential UK confounding policies and several placebo tests suggest that the carbon tax caused at least 80% of this decrease. Three mechanisms are highlighted: a decrease in emissions at the intensive margin; the closure of some high-emission plants at the extensive margin; and a higher probability of closure than in the synthetic UK for plants at risk of closure due to European air quality regulations. This paper shows that a carbon tax on electricity generation can lead to successful decarbonisation. |
| Keywords: | Synthetic control method,Synthetic control method carbon tax,Electricity generation,Carbon tax |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03265636&r= |
| By: | Frédéric Babonneau (ORDECSYS / EPFL - ORDECSYS / EPFL, Santiago - University Adolfo Ibanez, University of Geneva [Switzerland]); Ahmed Badran (Qatar University); Maroua Benlahrech (Qatar University); Alain Haurie (ORDECSYS / EPFL - ORDECSYS / EPFL, GERAD - Groupe d’études et de recherche en analyse des décisions - EPM - École Polytechnique de Montréal - McGill University = Université McGill [Montréal, Canada] - HEC Montréal - HEC Montréal - UQAM - Université du Québec à Montréal = University of Québec in Montréal); Maxime Schenckery (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Marc Vielle (EPFL - Ecole Polytechnique Fédérale de Lausanne) |
| Abstract: | This paper proposes an assessment of long-term climate strategies for oil- and gas-producing countries—in particular, the Gulf Cooperation Council (GCC) member states—as regards the Paris Agreement goal of limiting the increase of surface air temperature to 2°C by the end of the twenty-first century. The study evaluates the possible role of carbon dioxide removal (CDR) technologies under an international emissions trading market as a way to mitigate welfare losses. To model the strategic context, one assumes that a global cumulative emissions budget will have been allocated among different coalitions of countries—the GCC being one of them—and the existence of an international emissions trading market. A meta-game model is proposed in which deployment of CDR technologies as well as supply of emission rights are strategic variables and the payoffs are obtained from simulations of a general equilibrium model. The results of the simulations indicate that oil and gas producing countries and especially the GCC countries face a significant welfare loss risk, due to "unburnable oil" if a worldwide climate regime as recommended by the Paris Agreement is put in place. The development of CDR technologies, in particular direct air capture (DAC) alleviates somewhat this risk and offers these countries a new opportunity for exploiting their gas reserves and the carbon storage capacity offered by depleted oil and gas reservoirs. |
| Keywords: | GCC countries,Climate negotiations,Carbon dioxide removal,Financial compensation,Negative emissions,CDR technologies |
| Date: | 2021–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03260579&r= |
| By: | Xinyu Dou; Yilong Wang; Philippe Ciais; Fr\'ed\'eric Chevallier; Steven J. Davis; Monica Crippa; Greet Janssens-Maenhout; Diego Guizzardi; Efisio Solazzo; Feifan Yan; Da Huo; Zheng Bo; Zhu Deng; Biqing Zhu; Hengqi Wang; Qiang Zhang; Pierre Gentine; Zhu Liu |
| Abstract: | Precise and high-resolution carbon dioxide (CO2) emission data is of great importance of achieving the carbon neutrality around the world. Here we present for the first time the near-real-time Global Gridded Daily CO2 Emission Datasets (called GRACED) from fossil fuel and cement production with a global spatial-resolution of 0.1{\deg} by 0.1{\deg} and a temporal-resolution of 1-day. Gridded fossil emissions are computed for different sectors based on the daily national CO2 emissions from near real time dataset (Carbon Monitor), the spatial patterns of point source emission dataset Global Carbon Grid (GID), Emission Database for Global Atmospheric Research (EDGAR) and spatiotemporal patters of satellite nitrogen dioxide (NO2) retrievals. Our study on the global CO2 emissions responds to the growing and urgent need for high-quality, fine-grained near-real-time CO2 emissions estimates to support global emissions monitoring across various spatial scales. We show the spatial patterns of emission changes for power, industry, residential consumption, ground transportation, domestic and international aviation, and international shipping sectors between 2019 and 2020. This help us to give insights on the relative contributions of various sectors and provides a fast and fine-grained overview of where and when fossil CO2 emissions have decreased and rebounded in response to emergencies (e.g. COVID-19) and other disturbances of human activities than any previously published dataset. As the world recovers from the pandemic and decarbonizes its energy systems, regular updates of this dataset will allow policymakers to more closely monitor the effectiveness of climate and energy policies and quickly adapt |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.08586&r= |
| By: | Peter Kjær Kruse-Andersen; Peter Birch Sørensen |
| Abstract: | We analyse the optimal design of unilateral climate policy in an open economy where the government is committed to a target for reduction of domestic CO2 emissions but where it is also concerned about carbon leakage. We highlight the importance of distinguishing between leakage at the extensive margin where firms relocate to a foreign country to avoid the domestic carbon tax, and leakage at the intensive margin where domestic firms lose world market shares to foreign competitors due to the tax. Assuming that the government cannot implement border carbon adjustments, we show that the optimal allocation can still be implemented through a combination of taxes on emissions, taxes on domestic consumption of energy and final goods, an output subsidy as well as a lump-sum location subsidy to leakage-exposed firms, subsidies to carbon capture, taxes on domestic production of fossil fuels, and a subsidy to domestic production of green energy. Simulation experiments indicate that the social welfare gain from implementing the optimal leakage-adjusted tax-subsidy scheme rather than a single uniform emissions tax could amount to 0.5 percent of national income. A location subsidy aimed at reducing leakage at the extensive margin contributes to reducing the welfare loss from leakage. |
| Keywords: | carbon leakage, optimal carbon taxation in an open economy |
| JEL: | H21 H23 Q48 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9185&r= |
| By: | Rosellon, Maureen Ane, D. |
| Abstract: | Electric Vehicles (EVs) have gained attention globally as countries pursue the use of alternative technologies that reduce harmful emissions, climate-related effects and reliance on the use of fossil fuels. In the Philippines, policies and programs in support of the EV industry have been implemented, while a pending legislation awaits enactment. In an attempt to contribute insights to the policy discussion on EVs, the study examines the EV industry in the Philippines, current regulations, and challenges faced by the industry. The study finds strengths and opportunities in the EV industry, which include positive industry outlook and prospects for manufacturing in the supply chain. It also identifies weaknesses and threats related to technology utilization and competition. The study also presents recommendations to take advantage of the industry's potentials. <p>Comments to this paper are welcome within 60 days from date of posting. Email publications@mail.pids.gov.ph. |
| Keywords: | electric vehicles, clean technology, clean energy |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2021-15&r= |
| By: | Torben K. Mideksa |
| Abstract: | Finland introduced the planet’s first carbon tax in 1990 to experiment with, to most economists, the best policy to reverse carbon emissions. I estimate the causal effect of taxing carbon on Finnish emissions using the Synthetic Control Approach (Abadie, 2021). The results suggest that taxing carbon reduces emissions by big margins. Finnish emissions are 16% lower in 1995, 25% lower in 2000, and 30% lower in 2004 than emissions in the counterfactual consistent with carbon taxes whose value increasing by 20 fold in 1990 - 2005. The estimates suggest that the carbon tax’s abatement elasticity is about 9%. |
| JEL: | C21 C23 H23 L91 Q54 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9172&r= |
| By: | Titalessy, Pisi Bethania |
| Abstract: | The problem of climate change is increasingly global and results in environmental damage due to the use of fossil energy in human activities. An increasing population will make energy consumption increase and can make things worse. Therefore, it is necessary to replace old energy with alternative energy that is more environmentally friendly and makes productivity effective and efficient. Renewable energy is pointed out as an alternative energy source that is environmentally friendly and the process is sustainable because it is always available in nature. Renewable energy is expected to increase the country's national income. This study aims to analyze the impact of renewable energy on economic growth in the Asia Pacific region as a whole. By using data from 2000-2015, panel data analysis in this study shows that Renewable Energy Consumption (REC) has a negative and significant relationship to economic growth, while renewable energy and combustible waste (CRW) has a significant and positive effect on economic growth. |
| Date: | 2021–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:wn569&r= |
| By: | Aniruddh Mohan; Shayak Sengupta; Parth Vaishnav; Rahul Tongia; Asim Ahmed; Ines L. Azevedo |
| Abstract: | Unabated coal power in India must be phased out by mid-century to achieve global climate targets under the Paris Agreement. Here we estimate the costs of hybrid power plants - lithium-ion battery storage with wind and solar PV - to replace coal generation. We design least cost mixes of these technologies to supply baseload and load-following generation profiles in three Indian states - Karnataka, Gujarat, and Tamil Nadu. Our analysis shows that availability of low cost capital, solar PV installation costs of $ |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.04928&r= |
| By: | International Monetary Fund |
| Abstract: | Selected Issues |
| Keywords: | climate change mitigation; copyright page; EU emission reduction target; Climate action agenda; high share; recovery package; Greenhouse gas emissions; Climate policy; Climate change; Energy conservation; Global; Europe |
| Date: | 2021–06–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2021/124&r= |
| By: | Louis-Gaëtan Giraudet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Matthieu Glachant (CERNA i3 - Centre d'économie industrielle i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Jean-Philippe Nicolaï (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]) |
| Abstract: | In Europe, energy efficiency obligations are imposed on energy retailers competing in liberalized energy markets. They comply by subsidizing energy efficiency investments made by energy end-users within or outside their customer base. We develop a model describing how competition in the energy market affects compliance strategies. We find that, instead of selecting the most cost-effective investments options, firms may either target their most elastic customers, which enables them to increase their retail price, or their competitor's customers, which protects their sales. Allowing firms to trade obligations can restore cost-effectiveness, but reduces consumer surplus. Overall, the degree of flexibility that should be incorporated into such programs crucially depends on the degree of heterogeneity across investment costs and the relative weights governments assign to cost-effectiveness and consumer surplus. |
| Keywords: | Energy efficiency,Imperfect competition,Information asymmetry,Internal and external compliance. |
| Date: | 2020–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03109922&r= |
| By: | Declerck, Francis (ESSEC Research Center, ESSEC Business School); Indjehagopian, Jean-Pierre (ESSEC Research Center, ESSEC Business School); Lantz, Frédéric (IFP School) |
| Abstract: | This paper aims at explaining the major drivers of biodiesel market prices by examining agricultural resource prices and gasoil prices for automotive fuels in the context of the EU environmental policy. The EU policy has enhanced biodiesel production since 2006. Biodiesel prices are impacted by the EU policy as well as rapeseed and oil prices which have fluctuated a lot over the last decade. An econometric analysis was performed using monthly data from November 2006 to January 2016. However, tests for structural breaks show several changes in price behavior. This leads us to estimate a regime-switching model which reveals two main regimes for the biodiesel price pattern. When oil prices are high, biodiesel, rapeseed and diesel oil prices are related, mainly driven by oil prices. When oil prices are low, biodiesel prices are mostly related to rapeseed prices according to EU regulations requiring the blending of biodiesel and gasoil. |
| Keywords: | biofuel; oil market; structural changes; switching regime model |
| JEL: | O13 Q16 Q41 Q42 |
| Date: | 2020–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:ebg:essewp:dr-20003&r= |
| By: | Rodríguez-Álvarez, Ana (Oviedo Efficiency Group, Department of Economics, University of Oviedo, Spain); Llorca, Manuel (Department of Economics, Copenhagen Business School); Jamasb, Tooraj (Department of Economics, Copenhagen Business School) |
| Abstract: | In recent years, awareness of energy poverty has gained increasing attention in European countries. Comparative country studies can enhance our understanding of the causes and effects of this growing problem. This paper proposes a new model for the analysis of energy poverty. We define a theoretical framework and model to estimate an energy poverty frontier. The estimated frontier indicates the minimum level of energy poverty that a country can achieve given its income level, energy prices, and other country-specific features. We apply the approach to a sample of 30 European countries during the period 2005-2018. This allows us to contrast whether policy measures aimed at reducing the poverty among vulnerable individuals and households have been effective. The estimates indicate that financial aid aimed at especially vulnerable groups, reductions in energy prices, and improvements in energy efficiency seem to be beneficial to face energy poverty. The impact of these factors may partly explain why, despite the negative impact of the financial crisis, we have found a steady and general energy poverty reduction during the period in almost all the countries analysed. |
| Keywords: | Energy poverty in Europe; Energy poverty determinants; Social protection; Stochastic frontier analysis |
| JEL: | C23 H53 I32 Q43 Q48 |
| Date: | 2021–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2021_012&r= |
| By: | Ramos, Luther D. |
| Abstract: | This paper provides recommendations to shape suitable and appropriate legal, regulatory, and policy responses to emerging trends in the global electricity sector characterized by high levels of distributed energy resources (DERs). It reviews the existing Philippine legal and regulatory framework relating to DERs especially for distributed generation, micro or minigrid systems, and energy storage. It aims to determine if the country’s current regulatory framework can promote innovation and adequately support the integration of DERs by optimizing its benefits and minimizing potential disruptions in its deployment. Existing literature on international responses to advancements in the deployment of DERs were examined to identify risks and mistakes, lessons learned, and best practices to adapt to emerging trends in the sector. Based on the analysis, this paper formulates guiding principles and legal, regulatory, and policy responses to foster an environment where the potentials of DERs are maximized. |
| Keywords: | energy, regulatory framework, distributed energy resources, Philippine legal and regulatory framework |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:phd:pjdevt:pjd_2017_vol__44_no__2d&r= |
| By: | Fateh BELAID; Christophe RAULT |
| Keywords: | , Residential energy expenditure, Energy efficiency, Quantile regression, Adaptive Lasso, Egypt |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2893&r= |
| By: | SCHROECKER Doris; WILLE Angelo; SENTIS Pauline; TUEBKE Alexander (European Commission - JRC); HERNANDEZ GUEVARA Hector (European Commission - JRC); GRASSANO Nicola (European Commission - JRC); DIODATO Dario (European Commission - JRC); COMPANO Ramon (European Commission - JRC); CSEFALVAY Zoltan; GEORGAKAKI Aliki (European Commission - JRC); LETOUT Simon (European Commission - JRC); PASIMENI Francesco (European Commission - JRC) |
| Abstract: | This first pilot ‘industrial technology prospect report’ aims to provide an insight into the state of play on R&I in low-carbon industry technologies, which are key for emissions reductions in energy-intensive industries, such as steel, cement and chemicals, covered by the upcoming EU low-carbon industrial alliance20. It concentrates on the maturity of relevant technologies and their potential to help industry reach the EU climate targets. It provides an overview of relevant production costs in industrial sectors, potential cost reductions through new technology and insights into current public and private sector R&D investment and related patenting developments. The report also provides a snapshot of green R&I development and patents in EU regions. This report is the outcome of a model of cooperation between services that will help to provide a strong evidence base to inform future roadmaps supporting R&I in industrial ecosystems and alliances. The approach will be further developed in other areas through and greater involvement of the European Institute for Innovation and Technology (EIT) in analysing the territorial dimension of R&I. the exploitation of existing analytical capacities, targeted use of Horizon Europe results and greater involvement of the European Institute for Innovation and Technology (EIT) in analysing the territorial dimension of R&I. |
| Keywords: | Energy Intensive Industries, Research & Development, Innovation, Technology Roadmap |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc125684&r= |
| By: | Sauter, Verena; Speth, Daniel; Plötz, Patrick; Signer, Tim |
| Abstract: | Facing climate change, The European Union has set ambitious greenhouse gas (GHG) reduction targets. Within Europe, heavy-duty vehicles (HDV) account for a quarter of greenhouse gas emissions in the transport sector and therefore plays a central role in achieving the climate targets. A potential solution to reduce GHG emissions is the use of battery electric vehicles (BEV). However, the limited range of BEV requires a European public fast-charging network to ensure widespread deployment of BEV. Here, European road freight transport flows are modelled based on the publicly available European Transport policy Information System (ETISplus) dataset. The resulting truck flows serve as input for a charging infrastructure network model. Potential charging stations are located using a coverage-oriented approach and sized according to a queuing model such that an average waiting time of five minutes is guaranteed at each location. Our results show that for a share of 15% BEV in HDV stock and a dense network with charging locations every 50 km, a total of 4,067 charging points at 1,640 locations are required by 2030. In contrast, with a share of 5% BEV and charging locations every 100 km, 1,715 charging points are needed at 812 locations. Our findings provide insights for the design of a public fastcharging network in Europe and thus supports the planning of future infrastructure projects. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s022021&r= |
| By: | S\´ebastien Houde (Grenoble Ecole de Management, 38000, Grenoble, France); Tobias Wekhof (CER–ETH – Center of Economic Research at ETH Zurich, Switzerland) |
| Abstract: | For more than forty years analysts have pointed out that society might be too slow in adopting energy efficiency technologies, a phenomenon known as the Energy Efficiency Gap. There are persistent market barriers that impede these efforts. Eliciting these barriers and their heterogeneity is key for policy design. In this paper, we use narratives, a novel approach based on unstructured text answers in surveys, to elicit the barriers and determinants of energy efficiency investments. Using recent advances in Natural Language Processing (NLP), we turn narratives into quantifiable metrics to rank households' barriers and determinants. We find that financial motives are not the primary barriers or determinants of energy efficiency investments. Instead, we find that such investments are highly opportunistic and co-benefits, such as ecological concerns and comfort, also play an important role. Although there is substantial heterogeneity across the population in the type of barriers and determinants, demographics and building characteristics poorly predict heterogeneity patterns. This has important implications for the targeting of policies. Narratives could be a novel and effective way to implement policy targeting. |
| Keywords: | energy efficiency gap, natural language processing, policy targeting, open-ended questions |
| JEL: | Q41 Q50 L15 D12 D83 D91 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:21-359&r= |
| By: | Christa N. Brunnschweiler; Steven Poelhekke |
| Abstract: | We present a new dataset that tracks changes in legal ownership regimes in the petroleum sector between 1867 and 2008 for a panel of countries. We document that foreign ownership has been taken over by partnerships as the leading ownership regime, while domestic ownership is on the rise again in recent years. We use this dataset to examine whether institutional change in the petroleum sector leads to more oil and gas exploration and discoveries. On average, switching to majority foreign ownership is related to up to a quarter of a standard deviation more discoveries than under majority domestic ownership. Switching to partnership is positively related to drilling activity, but is less likely to be linked to many more discoveries. Petroleum exploration and discoveries may thus be endogenous to industry-specific institutional change. |
| Keywords: | discoveries, oil and gas, natural resources, institutions |
| JEL: | E02 O43 Q30 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9169&r= |
| By: | Julia Edigareva; Tatiana Khimich; Oleg Antonov; Jesus Gonzalez |
| Abstract: | The authors of the study conduct a legal analysis of the concept of energy security. Energy is vital for sustainable development, and sustainability is not only at the heart of development, but also economic, environmental, social and military policies. To ensure the sustainability of the policy, 'security' seems to be a mandatory goal to achieve. The article critically assesses the change in the energy paradigm. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.16117&r= |
| By: | Dainius Genys (VDU - Vytautas Magnus University - Vytauto Didziojo Universitetas); Ričardas Krikštolaitis (VDU - Vytautas Magnus University - Vytauto Didziojo Universitetas) |
| Abstract: | The paper is directed to an important yet controversial phenomena of public perception of nuclear energy in Lithuania. It discusses the conceptualization of nuclear energy public perception in relation to psychometric paradigm and its specified key elements of public security feelings. The empirical research is based on representative public poll carried out in 2017. Based on the discoveries of previous research when identifying the interdependence of public perception and support towards concrete political parties, four clusters were formed to test conceptual notions (importance of personal trust in energy industry and personal knowledge) and then relate it with the political preferences of each cluster. The results indicate the distribution of both nuclear energy as well as concrete energy projects public perception in relation to political preferences and peculiarities of security feeling among each cluster. |
| Keywords: | nuclear energy,public perception,political priorities,change,cluster analysis,Lithuania |
| Date: | 2020–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03271859&r= |
| By: | Jesus M. Gonzalez-Barahona |
| Abstract: | Background: During the last years, there has been a lot of discussion and estimations on the energy consumption of Bitcoin miners. However, most of the studies are focused on estimating energy consumption, not in exploring the factors that determine it. Goal: To explore the factors that determine maximum energy consumption of Bitcoin miners. In particular, analyze the limits of energy consumption, and to which extent variations of the factors could produce its reduction. Method: Estimate the overall profit of all Bitcoin miners during a certain period of time, and the costs (including energy) that they face during that time, because of the mining activity. The underlying assumptions is that miners will only consume energy to mine Bitcoin if they have the expectation of profit, and at the same time they are competitive with respect of each other. Therefore, they will operate as a group in the point where profits balance expenditures. Results: We show a basic equation that determines energy consumption based on some specific factors: minting, transaction fees, exchange rate, energy price, and amortization cost. We also define the Amortization Factor, which can be computed for mining devices based on their cost and energy consumption, helps to understand how the cost of equipment influences total energy consumption. Conclusions: The factors driving energy consumption are identified, and from them, some ways in which Bitcoin energy consumption could be reduced are discussed. Some of these ways do not reduce the most important properties of Bitcoin, such as the chances of control of the aggregated hashpower, or the fundamentals of the proof of work mechanism. In general, the methods presented can help to predict energy consumption in different scenarios, based on factors that can be calculated from available data, or assumed in scenarios. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.10634&r= |
| By: | Khaled Abedrabboh; Luluwah Al-Fagih |
| Abstract: | The intermittent nature of renewable energy resources creates extra challenges in the operation and control of the electricity grid. Demand flexibility markets can help in dealing with these challenges by introducing incentives for customers to modify their demand. Market-based demand-side management (DSM) have garnered serious attention lately due to its promising capability of maintaining the balance between supply and demand, while also keeping customer satisfaction at its highest levels. Many researchers have proposed using concepts from mechanism design theory in their approaches to market-based DSM. In this work, we provide a review of the advances in market-based DSM using mechanism design. We provide a categorisation of the reviewed literature and evaluate the strengths and weaknesses of each design criteria. We also study the utility function formulations used in the reviewed literature and provide a critique of the proposed indirect mechanisms. We show that despite the extensiveness of the literature on this subject, there remains concerns and challenges that should be addressed for the realistic implementation of such DSM approaches. We draw conclusions from our review and discuss possible future research directions. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.14659&r= |
| By: | International Monetary Fund |
| Abstract: | Selected Issues |
| Keywords: | aggregate emission saving; D. cost effectiveness; copyright page; electric vehicle ownership; one-off registration tax; Tax incentives; VAT exemptions; Greenhouse gas emissions; Income; Global |
| Date: | 2021–06–10 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2021/105&r= |
| By: | Farhad Billimoria; Filiberto Fele; Iacopo Savelli; Thomas Morstyn; Malcolm McCulloch |
| Abstract: | Securing an adequate supply of dispatchable resources is critical for keeping a power system reliable under high penetrations of variable generation. Traditional resource adequacy mechanisms are poorly suited to exploiting the growing flexibility and heterogeneity of load enabled by advancements in distributed resource and control technology. To address these challenges this paper develops a resource adequacy mechanism for the electricity sector utilising insurance risk management frameworks that is adapted to a future with variable generation and flexible demand. The proposed design introduces a central insurance scheme with prudential requirements that align diverse consumer reliability preferences with the financial objectives of an insurer-of-last-resort. We illustrate the benefits of the scheme in (i) differentiating load by usage to enable better management of the system during times of extreme scarcity, (ii) incentivising incremental investment in generation infrastructure that is aligned with consumer reliability preferences and (iii) improving overall reliability outcomes for consumers. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.14351&r= |
| By: | Koutchogna Kokou Assogbavi (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux 4); Stephane Dees (Larefi - Laboratoire d'analyse et de recherche en économie et finance internationales - Université Montesquieu - Bordeaux 4) |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03265178&r= |
| By: | Peter Tankov; Laura Tinsi |
| Abstract: | We consider a sequential decision making process, such as renewable energy trading or electrical production scheduling, whose outcome depends on the future realization of a random factor, such as a meteorological variable. We assume that the decision maker disposes of a dynamically updated probabilistic forecast (predictive distribution) of the random factor. We propose several stochastic models for the evolution of the probabilistic forecast, and show how these models may be calibrated from ensemble forecasts, commonly provided by weather centers. We then show how these stochastic models can be used to determine optimal decision making strategies depending on the forecast updates. Applications to wind energy trading are given. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.16047&r= |
| By: | Etienne Lorang (BETA INRAE and Climate Economics Chair); Antonello Lobianco (BETA AgroParisTech); Philippe Delacote (BETA INRAE and Climate Economics Chair) |
| Abstract: | Recycling is emerging as an alternative to extraction in many industries and one of the corner stones of the circular economy. In this paper, we assess the role of paper and cardboard recycling on the forest sector, both from an economic and carbon perspective. For that purpose, we model this recycling industry within our forest sec- tor model, in order to relate it to other wood products. As the forest sector has an important potential for climate change mitigation, this model allows us to assess the effects on the resource and the carbon balance of the forest sector. We show that these results are strongly linked to the hypothesis of substitution or complementarity between recycled and wood-pulp. |
| Keywords: | Recycling, Forest sector, GHG Emissions, Bioeconomic model, |
| JEL: | Q23 Q53 Q54 L73 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2021.12&r= |
| By: | Zhenqian Huang (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Lulu Zhao (Intern, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | COVID-19 and the oil prices crash induced by it have imposed a double whammy on fuel-exporting countries in Asia and the Pacific. Compared to other countries, they are likely to experience greater economic weaknesses, as they face not only slowdown in economic activities, but also revenue shortfalls, deteriorating export earnings and capital flight, and depreciation pressure on currencies due to lower-than-expected oil prices. To cope with the immediate negative impacts of COVID-19, countries have introduced timely and necessary large and targeted fiscal and monetary policy measures. However, these immediate policy measures should not take the policy attention away from the long over-due and much-needed structural economic transformation in fuelexporting countries. Excessive dependence on fuels, especially oil, has kept these countries very vulnerable to the commodity boom and bust cycles.Therefore, when designing economic recovery packages, countries should also embed long-term sustainability considerations by introducing measures that can help them diversify their economies and reduce reliance on fossil fuels. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb113&r= |
| By: | Tomas Plėta (Vilnius Gediminas Technical University); Manuela Tvaronavičienė (Vilnius Gediminas Technical University, General Jonas Žemaitis Military Academy of Lithuania); Silvia Casa (Daugavpils University); Konstantin Agafonov (Mykolas Romeris University) |
| Abstract: | The purpose of the paper is to analyze the vulnerabilities of Critical Energy Infrastructures' systems in the event of cyber-attack. The global tendency of cyber-attacks puts Critical Energy Infrastructures on one of the first places for targets. Critical Infrastructure Protection (CIP) has become an increasingly relevant topic in the global industrial environment, as the consequences of cyber-attacks toward ICS can result in physical disruption and loss of human lives. The analysis presented in the paper will take into consideration three different case scenarios of cyber-attacks to Critical Energy Infrastructures, and will evaluate the outcomes and the tactics used by the organizations' response and recovery. |
| Keywords: | critical infrastructure,management,cyber-attack,energy security,cybersecurity |
| Date: | 2020–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03271856&r= |
| By: | Stephen K. Dimnwobi (Nnamdi Azikiwe University, Anambra State, Nigeria); Chukwunonso Ekesiobi (Chukwuemeka Odumegwu Ojukwu University, Nigeria); Chekwube V. Madichie (Pan-Atlantic University, Lagos, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The nexus of population dynamics and environmental degradation has been discussed widely in the extant literature. Most related studies have utilized carbon emission as a proxy of environmental quality. However, carbon emission does not capture the multidimensional nature of environmental degradation. To fill this gap, this study utilized the ecological footprint to capture environmental degradation because it is a more dynamic environmental quality measure. The paper examines the population-environmental degradation hypothesis for five populous African countries (DR Congo, Ethiopia, Nigeria, South Africa and Tanzania) using panel information from 1990-2019. The Cross-sectionally Augmented autoregressive distributed lag (CS-ARDL) was employed to assess the relationship among the data – ecological footprint per capita (ECFP), population growth rate (POPG), population density (POPD), urban population growth rate (URBN), age structure of the population (AGES), per capita GDP growth rate (PGDP), energy consumption (ENEC), and trade openness (TRAD). The findings of the study revealed that POPG, POPD, AGES, PGDP, ENEC and TRAD increase environmental degradation. Urbanization (URBN) has no significant influence on environmental degradation in the selected African countries. The study concludes with policy prescriptions geared towards addressing population expansion and improving environmental quality. |
| Keywords: | Population dynamics, Environmental degradation, Africa |
| JEL: | C40 J11 O10 Q50 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:21/047&r= |
| By: | Vita, Gibran |
| Abstract: | The North American Free Trade Agreement (NAFTA) is the most influential trade agreement, signed by the governments of USA, Canada and Mexico in 1992. It came into effect the 1st of January of 1994 promising economic growth and better employment opportunities to reduce Mexican emigration. The Zapatista Army of National Liberation (EZLN), a civil resistance movement against capitalist neo-liberalism, protested the agreement, warning that it would feed social inequalities and threaten indigenous rights, autonomy, land access and use of natural resources. The Zapatistas feared the NAFTA would reinforce a master-servant relationship where Mexican human and natural resources are displaced, undermined or employed for the benefit of USA-CAN. In this paper we use Multiregional Input-Output Analysis based on the EORA model to examine changes in the carbon, land material, water and employment footprints in Mexico derived from the NAFTA agreement. We pay particular attention to the fairness of the resource exchange between USA and Mexico. We find all the consumption-based footprints grew between the period of 1990-2015. The carbon footprint increased by 50%, land by 32%, material by 46% and water by 566%. Territorial based employment rose by 7% and consumption based employment by 14%. Consumption of land and water considerably sped up after NAFTA. Remarkably, the land footprint doubled between 1994 and 2003, whereas GDP only increased by 20%. After that peak, the changes in land footprints retracted and stabilized at a 32% yearly increase until 2015, which corresponded to a 65% increase in GDP. Carbon intensity per unit of GDP has noticeably decreased after the NAFTA, nevertheless rising consumption heavily drives carbon emissions, eating-up efficiency gains. We confirm that the unequal trade has increased after the NAFTA, with surpluses for carbon, materials and more heavily for labour -meaning Mexico has become a net source for these resources. Not so for land and water, where Mexico remains a net consumer (2) We confirm that a large portion of the increases in Mexico’s carbon, material and water are destined to satisfy USA-CAN consumption. (3) We confirm a master-servant dynamic where the employment embodied in trade leaves Mexico with a 73% surplus -a net supplier of labor among NAFTA partners. |
| Date: | 2021–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:kc9ef&r= |
| By: | Don Fullerton; Shan He |
| Abstract: | Circular Economy literature recommends longer lasting products, in order to reduce pollution from extraction, production, and disposal. Our economic analysis finds conditions where consumers choose lives that are too short – a “durability gap”. Then policies targeting durability raise welfare. While externalities are corrected by Pigovian taxes that ignore durability, raising the output tax nonetheless induces consumers to pay more for goods that last longer. Second, if the tax is suboptimal, a durability mandate raises welfare. Third, internalities have ambiguous effects. Fourth, a social discount rate less than private discount rate is the strongest case for policy to favor durability. |
| Keywords: | Pigovian taxes, first-best policy, externalities, internalities |
| JEL: | H21 H23 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9171&r= |
| By: | Adrien Fabre (ETHZ ZURICH CHE - Partenaires IRSTEA - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture); Bénédicte Apouey (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, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas Douenne (UvA - University of Amsterdam [Amsterdam]); Jean-Michel Fourniau (IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - IFSTTAR - Institut Français des Sciences et Technologies des Transports, de l'Aménagement et des Réseaux - PRES Université Paris-Est); Louis-Gaëtan Giraudet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Jean-François Laslier (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, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Solène Tournus (MSHPN - Maison des sciences de l'Homme Paris Nord - UP8 - Université Paris 8 Vincennes-Saint-Denis - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Abstract: | We conduct surveys on both participants in the French Citizens Convention for Climate (CCC) and the general public. By comparing the answers of the randomly drawn citizens with those of the general population on identical questions, we assess the representativity of the CCC, study the evolution of the citizens' opinions, and document the perceptions of the CCC. The CCC appeared broadly representative of the French population. Although, the CCC's Citizens seemed to have been somewhat more favorable to climate policies than the general population at the start, a majority support was found for all proposed measures but one. Despite our findings that the CCC correctly represented the population, we document widespread ignorance and mistrust towards the CCC, including a largely shared belief that it was not representative. |
| Keywords: | Convention Citoyenne pour le Climat,Climate change,Sortition,Citizens Assembly |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03265053&r= |
| By: | Gardini; M.; Sabino; P.; Sasso; E |
| Abstract: | The purpose of this article is to introduce a new L\'evy process, termed Variance Gamma++ process, to model the dynamic of assets in illiquid markets. Such a process has the mathematical tractability of the Variance Gamma process and is obtained applying the self-decomposability of the gamma law. Compared to the Variance Gamma model, it has an additional parameter representing the measure of the trading activity. We give a full characterization of the Variance Gamma++ process in terms of its characteristic triplet, characteristic function and transition density. In addition, we provide efficient path simulation algorithms, both forward and backward in time. We also obtain an efficient "integral-free" explicit pricing formula for European options. These results are instrumental to apply Fourier-based option pricing and maximum likelihood techniques for the parameter estimation. Finally, we apply our model to illiquid markets, namely to the calibration of European power future market data. We accordingly evaluate exotic derivatives using the Monte Carlo method and compare these values to those obtained using the Variance Gamma process and give an economic interpretation of the obtained results. Finally, we illustrate an extension to the multivariate framework. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.15452&r= |
| By: | Jann Michael Weinand; Russell McKenna; Heidi Heinrichs; Michael Roth; Detlef Stolten; Wolf Fichtner |
| Abstract: | Onshore wind development has historically focused on cost-efficiency, which may lead to inequitable turbine distributions and public resistance due to landscape impacts. Using a multi-criteria planning approach, we show how onshore wind capacity targets can be achieved by 2050 in a cost-efficient, equitable and publicly acceptable way. For the case study of Germany, we build on the existing turbine stock and use open data on technically feasible turbine locations and scenicness of landscapes to plan the optimal expansion. The analysis shows that while the trade-off between cost-efficiency and public acceptance is rather weak with about 15% higher costs or scenicness, an equitable distribution has a large impact on these criteria. Although the onshore wind capacity per inhabitant could be distributed about 220% more equitably through the expansion, equity would severely limit planning flexibility by 2050. Our analysis assists stakeholders in resolving the onshore wind expansion trilemma. |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2106.15198&r= |