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on Energy Economics |
| By: | Mazzone, Daniel; Witcover, Julie; Murphy, Colin |
| Abstract: | California and British Columbia transportation fuel carbon intensity (CI) standards have been in effect since 2011, and Oregon’s since 2016. Total transport energy consumption under the programs was over 23 billion gasoline gallon equivalents (gge) in 2019. By 2019, the transport energy share from lower-carbon alternative fuels rose under each program to about 11%, 8%, and 7% in California, Oregon, and British Columbia, respectively. Each program met its CI targets and accumulated a bank of credits, which represent greenhouse gas (GHG) emission savings beyond the annual target. Credits cover program deficits assessed for emissions above target levels and can be applied towards future compliance. California and British Columbia drew down their credit banks each year since 2017; Oregon’s credit bank grew since the 2016 program start. Program credit prices in 2020 averaged $200/metric ton (MT), $132/MT, and $192/MT (all $USD) in California, Oregon, and British Columbia, respectively. In California, growth of cost-effective diesel substitutes led to over-compliance with the diesel pool standard (a 25% CI reduction for California in 2020), more than offsetting under-compliance in the gasoline pool (a 3% CI reduction there). The same is true in Oregon and British Columbia to a lesser extent. Renewable diesel (RD) generated a notable share of compliance credits in each jurisdiction, despite zero or near-zero volumes when the programs began. In 2019, RD accounted for more than 16% by volume of the liquid diesel pool in California and approximately 30% of alternative fuel energy and credits in British Columbia. RD was first credited in Oregon in 2019. Biomass-based diesel from used cooking oil grew rapidly; 2019 consumption increased by at least 70% over previous year in all three programs. Low-CI rated electricity (i.e., below the state grid average) accounted for approximately 4% of all credits in California beginning in 2019, after indirect accounting mechanisms that avoid the need for physical traceability became available. Oregon expanded its low-CI value electricity options in 2021 in a similar fashion to California. California’s is the only program to track and penalize increasing CI of petroleum fuels. Additional deficits accrued in 2020, totaling 192,000 – 2.6% of the total – through Q2. All three programs continue to adopt amendments, including extending targets and program durations (20% CI reduction by 2030 for all); opt-in credits for alternative jet fuel (California and Oregon); use of advanced crediting for electric vehicle (EV) charging (California and Oregon); an EV rebate program funded by residential charging credit revenue (California); infrastructure capacity crediting for zero emission vehicle (ZEV) fueling (California); third-party verification (California and Oregon), and carbon capture and sequestration protocol (California).o Washington state passed legislation adopting a Clean Fuel Standard to take effect in 2023. An online visualization tool and data repository, available athttps://asmith.ucdavis.edu/data/LCFS, includes much of the data used in this report. |
| Keywords: | Engineering, Social and Behavioral Sciences, fuel policy, transportation, carbon intensity standard, Low Carbon Fuel Standard, greenhouse gas emissions, California, Oregon, British Columbia |
| Date: | 2021–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt080390x8&r= |
| By: | Juárez-Luna, David; Urdiales, Eduardo |
| Abstract: | This article has a double objective. First, it delves into the reasons, which are apparently ignored today, to boost the generation of PV electricity in Mexico. Second, it suggests a research agenda associated with the generation of PV electricity in Mexico. The analysis highlights four main reasons why PV electricity generation should be promoted in Mexico: 1) taking advantage of Mexico's privileged solar irradiation; 2) taking advantage of the decreasing trend in the costs of PV technology; 3) it represents an alternative to satisfy the growing demand for electricity, and 4) it contributes to mitigating CO2 emissions associated with electricity generation. The present analysis suggests that, if it is desired to increase the participation of PV electricity generation in the national electricity generation, academic research should be carried out aimed at implementing public policies for this purpose. |
| Keywords: | photovoltaic electricity, generation, solar irradiation. |
| JEL: | Q40 Q42 Q49 |
| Date: | 2021–07–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108954&r= |
| By: | Majah-Leah V. Ravago (Department of Economics, Ateneo de Manila University); Raul V. Fabella (School of Economics, University of the Philippines); Karl Robert L. Jandoc (School of Economics, University of the Philippines); Renzi G. Frias (School of Statistics, University of the Philippines); J. Kathleen P. Magadia (Gas Policy Development Project, UPSCRFI) |
| Abstract: | One sizable group of energy users in the Philippines is the collection of firms in the Special Economic Zones (SEZs). The production process among many of the firms in the SEZs includes heating, which currently uses the more expensive and less environment-friendly diesel or liquefied petroleum gas as fuel. Thus, natural gas is a potential cost-competitive and cleaner substitute for the feedstock currently used in both heating process and electricity requirements of firms in SEZs. Our objective in this study is to assess the likelihood of firms to switch to natural gas and determine the profile of power and fuel use among firms in manufacturing and agro industrial SEZs. We find that the extent of knowledge about natural gas and their production technology process are the primary determinants of the likelihood to switch. Particularly, the knowledge that natural gas is a cost-competitive alternative along with the use of heating in the production process are critical to increasing a firm’s probability of switching. Hence, energy-intensive manufacturing firms that use more expensive fuel sources such as diesel for heating are more likely to switch to natural gas. These results also help shed light on facilitating the efficient transition away from less environment-friendly fuels to relatively cleaner natural gas and renewable sources. |
| Keywords: | Easterlin Paradox, Easterlin Hypothesis, Happiness-Income Model, Happiness Survey Question, Happy Poor |
| JEL: | A10 Y20 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:agy:dpaper:202105&r= |
| By: | Glenk, Gunther; Meier, Rebecca; Reichelstein, Stefan |
| Abstract: | The pace of the global decarbonization process is widely believed to hinge on the rate of cost improvements for clean energy technologies, in particular renewable power and energy storage. This paper adopts the classical learning-by-doing framework of Wright (1936), which predicts that cost will fall as a function of the cumulative volume of past deployments. We first examine the learning curves for solar photovoltaic modules, wind turbines and electrolyzers. These estimates then become the basis for estimating the dynamics of the life-cycle cost of generating the corresponding clean energy, i.e., electricity from solar and wind power as well as hydrogen. Our calculations point to significant and sustained learning curves, which, in some contexts, predict a much more rapid cost decline than suggested by the traditional 80% learning curve. Finally, we argue that the observed learning curves for individual clean energy technologies reinforce each other in advancing the transition to a decarbonized energy economy. |
| Keywords: | learning-by-doing,renewable energy,energy storage,electrolysis,levelized cost of energy |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:21054&r= |
| By: | Salim Turdaliev (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | This paper provides empirical evidence on the relationship between increasing-block-rate (IBR) pricing of electricity and the propensity of households to buy major electric appliances. I use variation from a natural experiment in Russia that introduced IBR pricing for residential electricity in a number of experimental regions in 2013. The study employs household-level panel data which records, among others, whether the household has purchased any major electric appliances during the last 3 months. Using difference-in-differences specification I show that in the regions with IBR pricing the purchase of major electric appliances has increased by more than 25 percent (2 percentage points). The findings suggest that price-based energy policies may be an effective tool in shaping the behavior of households. |
| Keywords: | appliances, increasing-block-rate tariff, electricity prices, energy efficiency gap |
| JEL: | Q3 Q4 D1 D9 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2021_27&r= |
| By: | Claudiu Albulescu (CRIEF - Centre de Recherche sur l'Intégration Economique et Financière - Université de Poitiers); Maria-Elena Boatca-Barabas; Andra Diaconescu |
| Abstract: | This paper uses a quantile fixed-effect panel data approach to investigate how environmental policy stringency affects CO2 emissions in a set of 32 OECD countries from 1990 to 2015. This approach allows us to identify the asymmetric impact of policy stringency on emissions, considering the emission level recorded in each analysed country. More precisely, we posit that the effectiveness of environmental regulations and policies is influenced by the air pollution level. Our results show that an increase in policy stringency has a negative impact on emissions. As a new contribution, we show that environmental stringency has a more powerful impact in the countries with lower level of carbon emissions. This result is also recorded for the subset of EU member countries of the OECD. Moreover, we show that policy stringency measures only become effective after the implementation of the Kyoto agreement. Finally, the policy stringency effect is stronger for EU countries at high risk of missing the 20-20-20 target in terms of greenhouse gas emissions. |
| Keywords: | CO2 emissions,environmental policies,environmental Kuznets curve,pollution haven hypothesis,panel quantiles regression |
| Date: | 2021–07–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03303096&r= |
| By: | Shoibal Chakravarty (Indian Institute of Science); E. Somanathan (Indian Statistical Institute, Delhi) |
| Abstract: | India is the world's third-largest emitter of CO2 and coal-fired power plants contribute approximately half of India's CO2 emissions. Indian government policies assume a significant expansion of coal-fired power in India over the next two decades. This paper compares the costs of coal and renewable power, including quantifiable domestic external costs, in 2018 as well as projections for 2025. Our estimate for the environmental cost of coal is 2.4 US KWh (1.64 Rupee/KWh) in the financial year 2018-19. The average cost of electricity from nearly all coal plants in India is greater than the cost of new solar and wind generators in 2018-19 when environmental costs are taken into account. More than 50% of the coal capacity has a social operating cost that is higher than the average social cost of power from renewables. By 2025, the cost of electricity from renewables with storage will be comparable to the domestic social costs of the cheapest new coal plants. We emphasize that this analysis holds without any accounting of climate change impacts in the form of a cost of carbon. There is, therefore, no economic case for new coal plants in India. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:alo:isipdp:21-04&r= |
| By: | Octavio Fernández-Amador; Joseph F. Francois; Doris A. Oberdabernig; Patrick Tomberger |
| Abstract: | Understanding the global energy network and the developments of energy efficiency is key to advance energy regulation and fight climate change. We develop a global panel dataset on energy usage inventories based on territorial production, final production and consumption over 1997-2014. We apply structural decomposition analysis to isolate energy efficiency changes and study the effectiveness of the European Union Energy Services Directive (2006/32/EC) on energy efficiency. High-income regions are net-importers of embodied energy and use a larger share of non-renewable energy than developing countries. The effectiveness of the Directive is mixed. The different ambition of national energy policies of the European Union members and some complementarity in supply chains underlie the different dynamics found. High-income countries share efficiency gains and changes in the mix of energy sources. These trends are not specific to the European Union. Energy policies in high-income countries are less effective for energy footprints. Our findings are indicative of energy leakage. Energy regulation should account for global supply chains and target energy footprints. |
| Keywords: | Energy usage, energy efficiency, energy footprints, renewable energy, MRIO analysis, Structural Decomposition Analysis, EU Energy Services Directive. |
| JEL: | F18 F64 O13 O44 Q40 Q54 Q56 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:inn:wpaper:2021-22&r= |
| By: | Moezzi, Mithra; Ingle, Aaron; Outcault, Sarah; Sanguinetti, Angela; Lutzenhiser, Loren; Wilhite, Hal; Lutz, James D.; Meier, Alan; Kutzleb, Jennifer |
| Abstract: | Solar thermal water heaters are an old technology used a century ago in California. They are now used extensively, in updated form, in many countries. According to government and industry estimates, well-functioning solar water heaters can theoretically displace 50 to 80 percent of the output of a natural gas-fueled household water heater, depending how hot water usage aligns with production and storage capacities. In so doing, they offer tremendous potential for reducing greenhouse gas emissions, fuel consumption, and energy bills. Such performance holds promise for California given its climate change and energy efficiency policy goals, since 40 percent of the natural gas used in California households is used to produce hot water. However, absent programs, only a specialty market for solar water heaters has developed. To encourage wider deployment, the California Solar Initiative—Thermal program offers financial incentives for systems qualifying under a carefully crafted set of specifications. The program has had some limited success since its inception in 2010. Within that context, this research assessed the performance and potential future use of natural gas-displacing solar water heaters in single-family homes in California, attending to a wide range of sociotechnical considerations. This project documented high diversity in user satisfaction and perceived system performance, and a qualified decrease in project costs to below $5,000 per installation. Solar water heating is a technology in progress, not universally suitable but instead appealing to varied niches shaped by household sensibilities, abilities, and hot water use levels. Thus, recent evolution provides a counterpoint to the pessimism, even as serious difficulties remain. The suitability of solar water heating for California households is not purely a matter of costeffectiveness within a typical energy efficiency framework, but also of evolving performance, perceptions, and values in light of ongoing and aspirational energy and social transitions ahead. |
| Keywords: | Engineering |
| Date: | 2019–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt490251gr&r= |
| By: | Simshauser, P. |
| Abstract: | When Australia established its National Electricity Market (NEM) during the 1990s, reforms were focused on maximising economic efficiency. Little thought was given to distributional outcomes. However, by the 2010s sluggish growth in household incomes, sharp rises in electricity prices and material increases in quantities consumed through surging uptake rates of air-conditioning units led to the possibility of (hot climate) fuel poverty. In the NEM’s Queensland region, longstanding customer hardship policy pre-dated the NEM. With the benefit of hindsight, the policy was poorly configured as it focused exclusively on the aged population and was delivered by way of fixed payment. Low income households in the family formation cohort were excluded from the policy despite obvious need. In this article, Queensland’s longstanding customer hardship policy is refined using pre-existing (meanstested) welfare mechanisms in order to target low income households including families, and the payment structure is altered from fixed ($ pa) to variable (% of the bill) while holding the budget constraint constant. Changes to policy targeting produce material improvements in horizontal and vertical efficiency while changes to payment structure further enhance vertical performance, with the incidence and depth of residual fuel poverty reduced. |
| Keywords: | Energy Affordability, Fuel Poverty, Policy Targeting, Targeting Efficiency, Customer Hardship Policy |
| JEL: | D25 D80 G32 L51 Q41 |
| Date: | 2021–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2129&r= |
| By: | Kevin Ankney (Department of Economics, Georgetown University) |
| Abstract: | The “energy efficiency gap” is a puzzle characterized by consumer under-investment in energy efficient products (e.g., hybrid vehicles), whose higher upfront cost is offset by future energy savings. One common but empirically unsubstantiated explanation for the gap is that credit constraints – prohibitively high borrowing costs or a lack of access to credit – hinder consumers’ ability to make energy efficiency investments. This paper provides the first direct evidence of the relationship between credit constraints and fuel economy demand in the U.S. new vehicle market. On average, increasing a consumer’s auto loan interest rate from 2% to 5% APR is associated with a 0.09 MPG decrease in purchased fuel economy. For a typical auto loan, this corresponds to $2,313 in additional interest paid, but only $86 in lifetime fuel cost savings lost. This disparity calls into question the suggestion that credit constraints are a meaningful contributor to the energy efficiency gap. Classification-D12, Q58 |
| Keywords: | credit constraints, fuel economy standards, passenger vehicles, energy efficiency |
| Date: | 2021–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:geo:guwopa:gueconwpa~21-21-17&r= |
| By: | Jochen Güntnher; Peter Öhlinger (Department of Economics, Johannes Kepler University Linz) |
| Abstract: | In the light of finite oil reserves, Persian Gulf oil-exporting economies have recently undertaken major investments in their domestic travel and tourism industries. Building on the Bayesian SVAR model of the global oil market in Baumeister and Hamilton (2019), we investigate the conditional comovement of airline stock returns with real oil prices in response to structural oil supply and demand shocks. We find that investing in the Datastream World Airline Index offers a hedging benefit conditional on oil supply, consumption demand, and inventory demand shocks, whereas there is no evidence of systematic positive or negative comovement following shocks to world economic activity and airline stock returns. |
| Keywords: | Airline excess returns; Bayesian SVAR model; Hedging; Oil price shocks |
| JEL: | C32 L71 L93 Q41 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:jku:econwp:2021-14&r= |
| By: | Pistochini, Theresa; Mande, Caton; Modera, Mark; Outcault, Sarah; Sanguinetti, Angela; Chan, Wanyu Rengie; Dutton, Spencer; Singer, Brett; Li, Xiwang |
| Abstract: | This project developed and demonstrated approaches to synergistically improve ventilation and indoor environmental quality during replacements of packaged heating, ventilation, and air conditioning (HVAC) systems in California schools. The research team 1) characterized HVAC systems, carbon dioxide concentration, and indoor thermal conditions in 104 classrooms that had replaced packaged HVAC systems serving a single classroom (single-zone) between 2013 and 2016; 2) evaluated HVAC system retrofits with regard to energy efficiency and indoor environmental quality performance at two field sites; and 3) completed building energy and indoor environmental quality modeling of HVAC equipment and filter selection for four climate and outdoor air conditions representative of California’s regional variation and two different classroom vintages. Inspections of 104 classrooms with HVAC equipment installed between 2013-2016 showed that only 15 percent of classrooms’ estimated median daily ventilation rates met the 7.1 liters per second per person Title 24 code requirement, and 9 percent had carbon dioxide levels above 2,000 parts per million for significant portions of the school day, which implies a ventilation rate of less than half of that required. Where under-ventilation occurred, it tended to affect several observed classrooms within a given school and not occur as an isolated case. Periodic testing of ventilation systems and continuous real-time carbon dioxide monitoring could help to detect ventilation problems. Field testing and modeling of HVAC technologies determined that variable speed motors for indoor blowers, two-speed compressors, economizers, demand control ventilation technology, and air filters with a minimum efficiency reporting value of 13 constitute an HVAC package suitable for all of California’s climates. The combination of technologies can save between 28 and 57 percent of HVAC electricity use, depending on climate. Filters with a minimum efficiency reporting value of 13 can reduce indoor particulate matter exposures by 40 percent or more compared to filters with a value of 8. |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2020–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt1jp1q4xb&r= |
| By: | Abrell, Jan; Rausch, Sebastian |
| Abstract: | Carbon pricing is a key instrument for achieving Europe's ambitious climate targets. It is therefore not surprising that reform of the EU carbon market is at the heart of the measures proposed by the European Commission (EC). One important policy innovation would be the introduction of a second emissions trading system in Europe that integrates other sectors like buildings and road transport. This addresses some of the inefficiencies of the existing, fragmented EU carbon markets, but at the same time requires a policy decision with potentially large implications in terms of economic costs to achieve European climate goals: How should the EU carbon budget be divided between two separate carbon markets? Achieving the EU climate target of 55 per cent causes a decrease in the aggregate consumption level of the EU-27 countries of 2.8 per cent or 248.9 billion euros in 2030 under current EU climate policy (without considering possible benefits from avoided climate change damages). A new emissions trading system reduces these costs by 21.5 per cent under the current allocation of the EU climate budget and by 33.0 per cent under the allocation proposed by the European Commission. Larger cost reductions of up to 61.6 per cent are possible if an even larger emissions budget is allocated to the buildings and transport sectors. Given the difficulties to politically determine the allocation of the EU climate budget, market-based flexibility mechanisms are desirable in order to achieve climate targets at the lowest economic cost. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:52021&r= |
| By: | Costola, Michele; Lorusso, Marco |
| Abstract: | We examine the connectedness in the energy commodities sector and the Russian stock market over the period 2005-2020 using the variance decomposition approach. Our analysis identifies the booms and busts in the correspondence of political and war episodes that are related to spillover effects in the Russian economy, as well as the energy commodities markets. Our findings show that the Russian Oil & Gas and Metals & Mining sectors are net shock contributors of crude oil and have the highest spillovers to other Russian sectors. Furthermore, we disentangle the sources of spillovers that originated from the financial and energy commodity markets and find that a positive change in the energy commodity volatility spillover is associated with an increase in Russian geopolitical uncertainty. Finally, we show that the spread of COVID-19 increases the stock market volatility spillover, whereas it lowers the energy commodity volatility spillover. |
| Keywords: | Spillover Effects, Russian Stock Market, Russian Sectoral Indices, Commodity Markets, International Financial Markets |
| JEL: | C3 C58 E44 G1 |
| Date: | 2021–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108990&r= |
| By: | Arezki, Rabah (African Development Bank & Harvard’s Kennedy School of Government); Simeon Djankov, Simeon (London School of Economics & Peterson Institute for International Economics); Nguyen, Ha (Middle East and North Africa at the World Bank); Yotzov, Ivan (University of Warwick) |
| Abstract: | Using a new dataset of 198 national elections across 48 democracies, this paper is the first to systematically examine the effects of oil price shocks on incumbents’ political fortunes in developed oil-importing countries. We find that oil price increases systematically lower the odds of reelection for incumbents and increase the likelihood of changes in the ideology of the incoming government. These shocks are found to operate through lowering consumption growth |
| Keywords: | Elections ; Incumbent ; Oil Prices ; Economic Shocks JEL Classification: D72 ; E21 ; P16 ; Q43 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:warwec:1362&r= |
| By: | RUI EVANGELISTA; JOÃO ANDRADE E SILVA; ESMERALDA A. RAMALHO |
| Abstract: | This paper investigates the impact of energy efficiency along the unconditional distribution of residential property prices in Portugal. Using a dataset of more than 256,000 residential property sales from 2009 to 2013, a period that covers an economic depression, unconditional quantile regression analysis reveals that the responsiveness to energy efficiency improvements is different not only as we move from low- to high-priced residential units but also for apartments and houses. While the former show a downward trend in the magnitude of energy efficiency coefficient estimates, the opposite occurs for houses. The latter market segment exhibits clear market discounts at the lowest quantiles of the price distribution, something that is not observable thought conditional mean and quantile regression analysis. Results suggest the existence of a different responsiveness to energy efficiency improvements in the Lisbon region when compared to the rest of the country and that the impact of the Energy Performance Certificate label increases throughout time across all price quantiles. As a by-product of this paper, an unconditional quantile price index shows that the impact of the crisis was not the same across the different market segments, with price decreases being more severe for low- than high-priced properties. |
| Keywords: | energy efficiency, residential property market, hedonic price models, conditional quantile regression, unconditional quantile regression |
| JEL: | C21 Q41 R21 R31 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp01862021&r= |
| By: | Newbery, D. |
| Abstract: | Most existing renewables support schemes distort location and dispatch decisions. Many impose unnecessary risk on developers, increasing support costs. Efficient policy sets the right carbon price, supports capacity not output, ensures efficient dispatch and location. The EU bans priority dispatch and requires market-based bidding, but does not address the underlying problem that payment is conditional on generation, amplifying incentives to locate in high resource sites. This article identifies the various distortions and proposes an auctioned contract to address location and dispatch distortions: a financial Contract for Difference (CfD) with hourly contracted volume proportional to local renewable output/MW, with a life specified in MWh/MW, adjusted for regional variations in correlation with total renewable output. This yardstick CfD delivers efficient dispatch while assuring but limiting the total amount of subsidy and not over-compensating high resource sites. The revenue assurance, with a government-backed counterparty, allows high debt:equity, dramatically lowering the subsidy cost. |
| Keywords: | renewables support schemes, distortions, auctions, yardstick contracts |
| JEL: | D44 D62 D86 H23 H25 L94 Q28 Q42 Q48 |
| Date: | 2021–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2128&r= |
| By: | Kube, Roland; Wendland, Finn |
| Abstract: | Zur Umsetzung des Europäischen Green Deals plant die Europäische Kommission im Juli 2021 eine umfangreiche Erneuerung der europäischen Klimaschutzinstrumente. Im Rahmen des Fit-For-55-Pakets sind 12 regulatorische Einzelmaßnahmen - von einer Erneuerung der Energieeffizienzstandards bis zu einer Revision des EU-Emissionshandels - zur Überarbeitung vorgesehen. Zusammen sollen diese den Weg ebnen, das neue 2030-Treibhausgasreduktionsziel von 55 anstatt 40 Prozent (gegenüber 1990) sowie das Ziel der Klimaneutralität bis 2050 zu erreichen. Diese Studie beleuchtet die geplante Neuausrichtung der beiden klimapolitischen Leitinstrumente: dem EU-Emissionshandel (EU-ETS) und der EU-Lastenteilung. Von besonderer Relevanz ist die Rolle eines möglichen EU-weiten CO2-Bepreisungsmechanismus für den Straßenverkehr und Gebäudesektor. Nach der Einführung eines mengenbasierten Mechanismus für bestimmte Sektoren durch das EU-ETS, sollen die gemeinschaftlichen Anforderungen zur Umsetzung der Klimaziele in weiteren Wirtschaftsbereichen zukünftig stärker harmonisiert werden. Der Straßenverkehr und Gebäudesektor sind geprägt von verhältnismäßig hohen Vermeidungskosten, geringen Preissensitivitäten und langen Investitionszyklen. Für eine zukünftige CO2-Bepreisung in diesen Sektoren sind grundsätzlich vier Optionen denkbar: eine Verschärfung der Zielvorgaben unter der derzeitigen strukturellen Ausrichtung; eine Erweiterung des bestehenden EU-ETS auf weitere Bereiche; ein Aufbau eines separaten 2. Emissionshandels; eine Kombination sektorspezifischer Instrumente (Emissionshandel und Energiesteuer). [...] |
| JEL: | Q48 Q58 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkpps:132021&r= |
| By: | Capucine Nobletz |
| Abstract: | This paper assesses the interconnectedness between global green energy and sectoral stock indexes. We show that green energy return spillovers need to be monitored. The green energy index has a significant degree of financial openness, and it is tightly interconnected with sectors producing similar goods as materials or industrials. Over time, the green energy return spillovers vary according to global events and economic/financial uncertainties. Spillovers rose during the pandemic crisis, illustrating the "fly to liquidity" mechanism. |
| Keywords: | Marchés financiers, Indices boursiers verts, Indices sectoriels, Analyse de réseaux |
| JEL: | C32 G15 Q42 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2021-24&r= |
| By: | Henri Njangang (University of Dschang, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon); Sosson Tadadjeu (University of Dschang , Cameroon); Yann Nounamo (University of Douala, Douala, Cameroon); Brice Kamguia (University of Dschang, Cameroon) |
| Abstract: | The study assesses the role of governance in modulating the effect of oil wealth on wealth inequality in 45 countries in the world. The empirical evidence is based on Pooled Ordinary Least Squares and the Generalised Method of Moments. The findings show that oil rents unconditionally increase wealth inequality while govenance dyanmics (in terms of rule of law, corruption-control, government effectiveness, regulatory quality) moderate oil rents for an overall net negative effect on wealth inequality. Good governance thresholds at which the unconditional effect of oil rents on the wealth inequality changes from positive to negative are computed and discussed. It follows that while governance is a necessary condition for improving the redistributive effects of oil wealth, it becomes a sufficient condition for net positive improvements in wealth distribution only when some critical levels of good governance have been reached. Other policy implications are discussed. |
| Keywords: | Governance; Oil wealth; Wealth inequality, Panel data |
| JEL: | F21 F54 L71 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/049&r= |
| By: | Tal, Gil; Lee, Jae H; Chakraborty, Debapriya; Davis, Adam |
| Abstract: | Very little research has been conducted on the second (and third, and thereafter) owners of new technologies. For light duty vehicles, the research has been focused on the first owners. In the case of plug-in electric vehicles (PEVs), understanding the secondary market is especially important for many reasons, including the vehicle market development and on-road usage. The second owner is also an adopter of new technology, many times taking greater risk than the original owner by purchasing a vehicle close to, or after, the end of the warranty. Data on vehicle ownership at the zip code level was used to explore the total number of vehicles, the number of electric vehicles (EVs) owned by the original owner, and the number of EVs owned by a second or third owner. Results suggest that in areas with few EVs overall, used PEVs make up a higher share of all PEVs, but a lower share of all vehicles. Used PEVs are slightly less spatially concentrated than new ones, possibly because of a weaker neighborhood effect and possibly because their lower cost makes them accessible to slightly more people. The study finds that at least in this phase of the market development, used PEVs are not trickling down at a high rate, but more research is needed to evaluate the reasons for this phenomenon. Policies that focus on the progression of used PEVs to secondary owners by improving the information provided to used car buyers, reducing the risk of purchasing a new technology, improving the availability of charging, and addressing other barriers, can help communities with low rates of PEV adoption and improve the market growth in the future. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Plug-in electric vehicles, travel behavior, consumers, markets, infrastructure, used electric vehicles, previously-owned vehicles |
| Date: | 2021–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8125k5tf&r= |
| By: | Tal, Gil; Lee, Jae Hyun; Ji, Wei |
| Abstract: | This project creates a toolkit that run in ArcGIS and allows users to project where EV owners will live, work, and charge. There are three distinct modules: market analysis, workplace charging, and home charging presented in block group level. The tool can be updated by the MPO users to reflect new technologies and policies, and to be used by local planners using the web interface. DVRPC has uploaded the tool’s results to an ArcGIS online interface so that interested parties may use the results in their own analyses. The researchers expect these results to be useful for electric distribution companies, businesses, developers, EV charging companies, and all levels of governments in their EV planning efforts. View the NCST Project Webpage |
| Keywords: | Engineering, Electric vehicles, Charging infrastructure, planning toolbox, GIS |
| Date: | 2021–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt1cg3322r&r= |
| By: | Moretti, Ayla; Cocker, David III; Barth, Matthew |
| Abstract: | This research focused on developing a module that can be added into current emission simulators, such as the EPA’s MOVES, that bridges the gap between portable emissions measurement systems (PEMS) / dynamometer measurements to account for gas-particle partitioning processes occurring on a timescale representative of near roadway monitors. View the NCST Project Webpage |
| Keywords: | Engineering |
| Date: | 2020–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3z9851w9&r= |
| By: | Yves Smeers; Sebastian Martin; Jose A. Aguado |
| Abstract: | This case study presents an analysis and quantification of the impact of the lack of co-optimization of energy and reserve in the presence of high penetration of wind energy. The methodology is developed in a companion paper, Part I. Two models, with and without co-optimization are confronted. The modeling of reserve and the incentive to renewable as well as the calibration of the model are inspired by the Spanish market. A sensitivity analysis is performed on configurations that differ by generation capacity, ramping capability, and market parameters (available wind, Feed in Premium to wind, generators risk aversion, and reserve requirement). The models and the case study are purely illustrative but the methodology is general. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.09636&r= |
| By: | Riccardo Colantuono (University of Siena, Regulation for Sustainability (R4S), Italy) |
| Abstract: | This study analyzes the current status of the civil aviation industry in the context of two market-based measures designed for the mitigation of CO2 emissions: the European Union Emissions Trading System (EU ETS) and the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). These mechanisms are central in the challenge to decarbonize aviation and their principles, structure and coexistence perspectives will be the object of this article. In the first section of this study the status of the aviation industry in the EU ETS will be described. After a brief explanation regarding the basic functioning of the scheme, a historical perspective will allow to understand how and why aviation has come to a privileged position in the EU ETS, meaning that the system is failing to apply the appropriate price on the sector’s emissions which have continued to grow exponentially in the last decade as a consequence of this deficiency. Consequently, some policy suggestions that may correct this issue will be discussed. The second section analyzes another market-based mitigation mechanism: the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). CORSIA is a global scheme adopted in 2016 by the International Civil Aviation Organization (ICAO), which is a United Nations agency. CORSIA has commenced its operations in January 2021 and its historical developments, structure and functioning system will be analyzed thoroughly in this study. However, scholars and observers have highlighted several issues in its functioning mechanisms that could significantly reduce its effectiveness. These hindrances will be identified and explored in the third section of this study, and may be listed as it follows: voluntary nature and lack of enforcement, issues inherent to offsetting, issues with the rules concerning SAFs, issues with ICAO transparency and industry influence and the decision taken by ICAO to change the baseline year as a response to the COVID-19 pandemic. The final part of this study is subsequently devoted to comparing CORSIA, the EU ETS and perspectives about their coexistence, as at European level policy options regarding their relationship are currently in the process of being designed. In fact, a proposal for a regulation concerning these issues is currently being discussed in the European Commission and is expected to be adopted in the second quarter of the current year. Once this legislative decision is taken, the challenge of addressing aviation’s climate impact from a market-based standpoint may be a step closer. |
| Keywords: | Emission trading scheme |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0921&r= |
| By: | Schneider, Susan M; Sanguinetti, Angela |
| Abstract: | A major cause of global climate change, human behavior has long been recognized as an essential part of the solution as well. Behavior change methods in turn rely in part on associative learning principles. Some learning principles, such as positive reinforcement and delay discounting, are already integrated into energy research and interventions. However, others remain underutilized. In this paper, we review selected learning principles, suggesting how they can enhance both our understanding of the behavioral challenges and our effectiveness in addressing them. We seek to interest and involve researchers and practitioners in a variety of energy and sustainability specializations. |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt02n7j1cn&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:agd:wpaper:21/047&r= |
| By: | Magambo, Isaiah Hubert; Dikgang, Johane; Gelo, Dambala; Tregenna, Fiona |
| Abstract: | This study used the by-production model specification to separate emission-generating technologies from ‘desirable outputs’ technology. It then employed the dynamic efficiency model, following the Dynamic Directional Input Distance Function specifications to compute the deterministic, dynamic environmental and technical efficiencies of large gold mines in developing countries. Using firm-level data from 2009 to 2018, the study found that on average, dynamic technical efficiency in these mines was 73%; the average dynamic technical efficiency was observed to have a decreasing trend, of 0.3% annually. The study also found that on average, dynamic environmental efficiency was 56%. However, the average dynamic environmental efficiency trend had a decrease of 0.6% annually. The poor performance and downward trends could be attributed partly to downward investment trends over time, and the increasing complexity of extracting gold deposits from low-grade ore, as well as to prices. They could also be the result either of poor institutional capacity, as far as environmental policies, regulations, and enforcement are concerned; or of supply-side structural rigidity – in particular, low-capacity, and unreliable energy supply, mostly from bad inputs such as coal and heavy fuels or both, which calls for the use of alternative energy sources. |
| Keywords: | environmental efficiency,gold mines,technical efficiency,undesirable output |
| JEL: | D24 D25 Q55 Q58 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:235859&r= |
| By: | Chau, Nancy H.; Basu, Arnab K.; Byambasuren, Tsenguunjav; Khanna, Neha |
| Abstract: | How serious is indoor air pollution (IAP) a mortality threat to young children? This paper estimates the causal effect of cooking fuel choice – a predominant cause of IAP – on infant mortality in India (1992-2016), where the most health-endangering biomass fuels are also most commonplace. Leveraging the speed of change in forest cover and land ownership for identification, we find polluting fuel choice to impose highly heterogeneous local infant mortality effects by age group (from insignificant to 4:7 percent increase) – implying the loss of two lives every 1,000 live births. These conclusions are robust to alternative estimation strategies and additional controls. |
| Keywords: | International Development |
| Date: | 2021–07–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:cudaeb:312521&r= |
| By: | Davillas, Apostolos; Burlinson, Andrew; Liu, Hui-Hsuan |
| Abstract: | This paper uses data from Understanding Society: the UK Household Longitudinal Study to explore the association between fuel poverty and a set of well-being outcomes: life-satisfaction, self-reported health measures and more objectively measured biomarker data. Over and above the conventional income–fuel cost indicators, we also use more proximal heating deprivation indicators. We create and draw upon a set of composite indicators that concomitantly capture (the lack of) affordability and thermal comfort. Depending on which fuel deprivation indicator is used, we find heterogeneous associations between fuel poverty and our well-being outcomes. Employing combined fuel deprivation indicators, which takes into account the income–fuel cost balance and more proximal perceptions of heating adequacy, reveals the presence of more pronounced associations with life satisfaction and fibrinogen, one of our biological health measures. The presence of these strong associations would have been less pronounced or masked when using separately each of the components of our composite fuel deprivation indicators as well as in the case of self-reported generic measures of physical health. Lifestyle and chronic health conditions plays a limited role in attenuating our results, while material deprivation partially, but not fully, attenuates our associations between fuel deprivation and well-being. These results remain robust when bounding analysis is employed to test the potential confounding role of unobservables. Our analysis suggests that composite fuel deprivation indicators may be useful energy policy instruments for uncovering the underlining mechanism via which fuel poverty may get “under the skin”. |
| Keywords: | Fuel poverty,biomarkers,health,well-being |
| JEL: | I12 I31 I32 Q4 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:903&r= |
| By: | Tchoffo, Rodrigue |
| Abstract: | The Covid-19 pandemic led to a loss of employment in many sectors of the economy around the world. This negatively affected the industry capacity of production of many countries. Linking the CO2 emissions to the production capacity, the total pollution is likely to decrease. We investigate this issue by designing a simple environmental model based on the partial equilibrium (PE). We test this theoretically and empirically using recent data on the total contamination for four regions and countries. Then, we link our model to the CGE model of Hosoe et al. (2010) to capture the impact on other sectors of the economy. The final model PE-CGE is therefore designed through the household consumption demand channel. Broadly, our findings show that the environmental impact of the pandemic depends on the structure of the economy. While the USA, China and Sub-Saharan Africa reduce their CO2 emissions, that of the EU rather increases. |
| Keywords: | Partial Equilibrium, Computable General Equilibrium, Covid-19, CO2 emissions, Employment, Production |
| JEL: | C68 F14 Q51 |
| Date: | 2021–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108920&r= |
| By: | Reinhold Heinlein (University of the West of England); Scott M. R. Mahadeo (University of Portsmouth) |
| Abstract: | Oil and US stock market shocks are expected to be relevant for Canadian equities, as Canada is an oil-exporter adjacent to the US. We evaluate how the relationship between Canadian stock market indices and such external shocks change under extraordinary events. To do this, we subject statistically identified oil and S&P 500 market shocks to a surprise filter, which detects shocks with the greatest magnitude occurring over a given lookback period; and an outlier filter, which detects extrema shocks that exceed a normal range. Then, we examine how the dependence structure between shocks and Canadian equities change under the extreme surprise and outlier episodes through various co-moment spillover tests. Our results show that co-moments beyond correlation are important in reflecting the changes occurring in the relationships between external shocks and Canadian equities in extreme events. Additionally, the differences in findings under extreme positive and negative shocks provide evidence for asymmetric spillover effects from the oil and US stock markets to Canadian equities. Moreover, the observed heterogeneity in the relationships between disaggregated Canadian equities and shocks in the crude oil and S&P 500 markets are useful to policymakers for revealing sector-specific vulnerabilities, and provide portfolio diversification opportunities for investors to exploit. |
| Keywords: | Canada; oil market; spillover; stock market |
| JEL: | C32 G15 Q43 |
| Date: | 2021–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:pbs:ecofin:2021-07&r= |
| By: | Dominik Hartmann; Diogo Ferraz; Mayra Bezerra; Andreas Pyka; Flavio L. Pinheiro |
| Abstract: | Research in Data Envelopment Analysis has created rankings of the ecological efficiency of countries' economies. At the same time, research in economic complexity has provided new methods to depict productive structures and has analyzed how economic diversification and sophistication affect environmental pollution indicators. However, no research so far has compared the ecological efficiency of countries with similar productive structures and levels of economic complexity, combining the strengths of both approaches. In this article, we use data on 774 different types of exports, CO2 emissions, and the ecological footprint of 99 countries to create a relative ecological pollution ranking (REPR). Moreover, we use methods from network science to reveal a benchmark network of the best learning partners based on country pairs with a large extent of export similarity, yet significant differences in pollution values. This is important because it helps to reveal adequate benchmark countries for efficiency improvements and cleaner production, considering that countries may specialize in substantially different types of economic activities. Finally, the article (i) illustrates large efficiency improvements within current global output levels, (ii) helps to identify countries that can best learn from each other, and (iii) improves the information base in international negotiations for the sake of a clean global production system. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2107.14365&r= |
| By: | Afees A. Salisu (Centre for Econometric & Allied Research, University of Ibadan, Ibadan, Nigeria; Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Abeeb Olaniran (Centre for Econometric & Allied Research, University of Ibadan, Ibadan, Nigeria) |
| Abstract: | In this paper, we investigate the effect of oil price uncertainty shock on real Gross Domestic Product (GDP) of 33 developed and emerging economies using the Global Vector Autoregressive (VAR) framework that allows us to capture the transmission of global shocks while simultaneously accounting for distinct characteristics of individual countries. Utilizing quarterly data over the period of 1980Q1 to 2019Q2, we show that, in general, oil price uncertainty shock has a statistically significant negative impact on GDP for 28 out of the 33 countries, but with varying magnitude and persistence. Overall though, we find the adverse effect on real GDP to be relatively stronger for the developed group of countries than the emerging ones. Hence, our results suggest that policymakers must be ready to undertake expansionary policies (of varying order) in the wake of an oil price uncertainty shock to prevent deep recessions, except in the cases of Norway, Philippines and Saudi Arabia, for which output tends to increase in a statistically significant manner. |
| Keywords: | Oil price uncertainty shock, Real GDP, GVAR |
| JEL: | C32 E32 Q02 |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202153&r= |
| By: | Shigeru Kimura (Economic Research Institute for ASEAN and East Asia (ERIA)); Ikarii Ryohei; Endo Seiya (The Institute of Energy Economics, Japan (IEEJ)) |
| Abstract: | The coronavirus disease (COVID-19) pandemic has brought us a ‘New Normal’ life style and the lockdown has severely harmed economic growth, with many countries estimated to record negative economic growth in 2020. Due to the high correlation between energy demand and economic growth, energy demand is also affected. Against this background, ERIA analyses how energy demand has decreased as a result of the COVID-19 pandemic using East Asia Summit (EAS) energy outlook models that are regularly updated by ERIA and apply an econometric approach. The outlook models cover the Association of Southeast Asian Nations (ASEAN) 10 countries plus seven countries – Australia, China, India, Japan, Republic of Korea, New Zealand, and the United States. According to gross domestic product (GDP) growth estimates for EAS countries in 2020, only three countries – China, Lao PDR, and Viet Nam – show positive growth, though less than 2%, and the others show negative growth. Total Final Energy Consumption (TFEC) of the EAS countries fell in 2020, but it is expected to rebound in 2021 and projected to return to the originally forecast trend of energy demand up to 2050. Once official energy statistics become available, a comparison between model results and actual statistics will be made to understand how the energy outlook models trace the impact of the pandemic on energy demand. |
| Keywords: | COVID-19, East Asia Summit, energy demand |
| JEL: | P18 |
| Date: | 2021–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2021-22&r= |
| By: | Kwame Adjei-Mantey (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University); Peter Quartey (Institute of Statistical, Social & Economic Research (ISSER), University of Ghana) |
| Abstract: | This study investigates the impact of a clean cooking intervention on primary fuel choice and on households' willingness to pay for an improved LPG distribution model in Ghana. Using data obtained via a survey of 904 households in two beneficiary districts, we found that the intervention led to higher LPG usage. The program increases the probability of households choosing LPG as a primary cooking fuel by 24% and the rate of use of LPG among households by 33%. Furthermore, an analysis of willingness to pay shows that delivery preference is not statistically different between beneficiary and control groups. The distance to refill the cylinder significantly affects LPG usage and willingness to pay. A policy that brings LPG refill closer to households and reduces the time and money cost of accessing a refill station is key to increasing the adoption of LPG as the primary cooking fuel. |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:2120&r= |
| By: | Aayush Tandon |
| Abstract: | With only a decade left to reduce emissions drastically, the scale, pace and extent of global transformation needed is truly demanding. Long-term emission goals and the nature of the low-emission transition in each country will be a function of its unique socio-economic priorities, capabilities, resource endowment, vision for post 2050 economic structure, and social and political acceptability of what constitutes a just transition. As we enter the “decade for delivery”, a whole of economy approach is needed to realise the low-emission transition. This includes focusing not only on upscaling zero and near-zero emitting technologies and businesses but also supporting, to the extent possible, the progressive lowering of emissions in high emitting and hard to abate sectors. In this context, “transition finance” is gaining traction among governments and market participants. To identify the core features of transition finance, this paper reviews 12 transition relevant taxonomies, guidance and principles by public (Japan, Singapore, Malaysia, Russia, European Union, EBRD) and private actors (Climate Bonds Initiative, International Capital Markets Association, Research Institute for Environmental Finance Japan, AXA Investment Managers and DBS), as well as 39 transition relevant financial instruments (vanilla transition bonds, key performance indicator-linked fixed income securities). This paper does not aim to define transition finance, but rather to review emerging approaches and instruments to highlight commonalities, divergences as well as issues to consider for coherent market development and progress towards global environmental objectives. Based on the review, this paper puts forth two preliminary views. First, that the essence of transition finance is triggering entity-wide change to reduce exposure to transition risk; second, that transition finance may be better understood as capital market instruments with a set of core functions/attributes rather than a specific format or label. |
| Keywords: | finance, low-carbon transition, sustainable debt, taxonomy, transition risk |
| JEL: | D5 E4 Q01 |
| Date: | 2021–08–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:179-en&r= |
| By: | Xunpeng Shi (Australia–China Relations Institute, University of Technology Sydney, Australia); Tsun Se Cheong (Department of Economics and Finance, The Hang Seng University of Hong Kong, Hong Kong); Michael Zhou (Australia–China Relations Institute, University of Technology Sydney, Australia) |
| Abstract: | This study examines the debates on supply chain resilience and the economic and emissions impact of supply chain rerouting using Australia and China trade as an example. The estimations demonstrate that, in both export and import cases, a trade embargo between Australia and China, despite being compensated by alternative supply chains, will cause gross domestic product loss and emissions increases for both countries. Moreover, even if all other countries gain from the markets left by China, many of them suffer from overall gross domestic product loss and emissions increase. The findings that ASEAN and China may also suffer from an Australia–China trade embargo, despite a gain in trade volume, suggests that no country should add fuel to the fire. The results suggest that countries need to defend rules-based trading regimes and continuously promote regional economic integration. |
| Keywords: | COVID-19; supply chain; global value chain; economic integration; Australia; China |
| JEL: | F18 Q56 |
| Date: | 2021–07–07 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2021-20&r= |
| By: | Angelos Alamanos; Phoebe Koundouri; Lydia Papadaki; Tatiana Pliakou |
| Abstract: | The Water-Food-Energy Nexus can support a general model of sustainable development, balancing resources with increasing economic/productive expectations, as e.g. in agriculture. We synthesize lessons from Greece's practical and research experience, identify knowledge and application gaps, and propose a novel conceptual framework to tackle these challenges. Thessaly (Central Greece), the country's driest region and largest agricultural supplier is used as an example. The area faces a number of water quantity and quality issues, ambitious production-economic objectives, continuous (historically) drought and flood events, conflicts, administrative and economic issues, under serious climate change impacts. A detailed assessment of the current situation is carried out, covering all these aspects, for the first time in an integrated way. Collaboration gaps among different stakeholders are identified as the biggest impediment to socially acceptable actions. For the first time, to our knowledge, the Nexus is set as a keystone to develop a novel framework to reverse the situation and achieve sustainable project planning under commonly acceptable long-run visions. The proposed framework is based on Systems' Theory, innovative principles, uses a multi-disciplinary platform to bring together all relevant key stakeholders, provides scientific support and commitment, and makes use of technological advances for the systems' improvement. |
| Keywords: | Water-Food-Energy Nexus, Thessaly, Greece, Systems Innovation Approach, scientific and stakeholder collaboration, framework development. |
| Date: | 2021–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2108&r= |
| By: | Yoo, Sunbin; Kumagai, Junya; Kawabata, Yuta; Keeley, Alexander; Managi, Shunsuke |
| Abstract: | We seek to understand whether environmental concerns, fears of potential accidents, and merits regarding fully autonomous vehicles (FAVs) are motivators of willingness to buy (WTB) and willingness to pay (WTP) of FAVs. To do so, a large-scale survey on FAVs of more than 180,000 respondents was collected in Japan, and structural equation modeling (SEM) validated our findings. Interestingly, this study implicates a form of WTB-WTP disparity: those interested in natural environment conservation would purchase FAVs because they show high interest in overall social problems, and new technologies such as FAVs can resolve such problems, according to previous works. However, our result implies that they would not show high WTP because adopting FAVs does not `directly' contribute to natural environment conservation. Additionally, our results indicate that those who appreciate potential merits would have higher WTB and WTP, while those who fear FAV technology would not purchase FAVs and would have lower WTP. The results bear crucial policy implications for planners by showing the complexity between the factors of FAV WTB and WTP. |
| Keywords: | Fully autonomous vehicle; WTP; structural equation model; environmental concerns. |
| JEL: | R4 R40 R41 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:108882&r= |
| By: | Jilleah G. Welch (Howard H. Baker Jr. Center for Public Policy, The University of Tennessee, Knoxville); Matthew N. Murray (Howard H. Baker Jr. Center for Public Policy, The University of Tennessee, Knoxville) |
| Abstract: | This is the first of two reports exploring the relationship between coal activity and funding for elementary and secondary education in the Appalachian Region. In this first report, patterns in funding for elementary and secondary education are explored using annual data from 1995 to 2016. Counties that had some level of coal employment over this time period (coal counties) are compared to counties that had no coal employment over the same time (non-coal counties). Through a descriptive analysis, we find that educational attainment rates in the Appalachian Region lag behind national rates, often by a significant margin. There is considerable heterogeneity in educational attainment across and within Appalachia, with coal communities within states sometimes outperforming non-coal communities and vice versa. The Appalachian region is also characterized by higher incidences of poverty, higher unemployment rates, and lower per capita incomes. These weaker economic conditions can impact communities’ ability to generate taxes from their own tax base such as local tax revenues which fund education. Education is essential for economic development and prosperity, particularly in incidences where declines in coal activity has been devasting for communities that already have lower levels of educational attainment. Encouragingly, we find that coal counties generally have similar levels of spending and local revenues per student as the nation as a whole. However, there is significant variation across counties and states. This descriptive analysis is followed by a second report, which aims to isolate the impacts of coal activity, including employment and production, on local revenues for elementary and secondary education. |
| Keywords: | Education and Economic Development, Human Capital Skills, Occupational Choice, Rural and Regional Analysis |
| JEL: | I25 J24 O18 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:rri:wpaper:2020rp18&r= |
| By: | Marc Fleurbaey (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, CNRS - Centre National de la Recherche Scientifique); Stéphane Zuber (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, 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) |
| Abstract: | How to evaluate and compare social prospects when there may be a risk on i) the actual allocation people will receive; ii) the existence of these future people; and iii) their preferences? This paper investigate this question that may arise when considering policies that endogenously affect future people, for instance climate policy. We show that there is no social ordering that meets minimal requirements of fairness, social rationality, and respect for people's ex ante preferences. We explore three ways to avoid this impossibility. First, if we drop the ex ante Pareto requirement, we can obtain fair ex post criteria that take an (arbitrary) expected utility of an equally-distributed equivalent level of well-being. Second, if the social ordering is not an expected utility, we can obtain fair ex ante criteria that assess uncertain individual prospects with a certainty-equivalent measure of well-being. Third, if we accept that interpersonal comparisons rely on VNM utility functions even in absence of risk, we can construct expected utility social orderings that satisfy of some version of Pareto ex ante. |
| Keywords: | Fairness,social risk,intergenerational equity |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-03289160&r= |