nep-ene New Economics Papers
on Energy Economics
Issue of 2021‒11‒08
forty-one papers chosen by
Roger Fouquet
London School of Economics

  1. Carbon Pricing and Power Sector Decarbonisation: Evidence from the UK By Leroutier, Marion
  2. Green technology policies versus carbon pricing. An intergenerational perspective By Sebastian Rausch; Hidemichi Yonezawa
  3. Renewable energies and energy efficiency adoption’s impact on the environmental quality of MENA countries By AGUIR BARGAOUI, Saoussen
  4. The Effect of Temperature on Energy Use and CO2 Emissions in the German Industry By Lehr, Jakob; Rehdanz, Katrin
  5. Cost-effective reduction of fossil energy use in the European transport sector: An assessment of the Fit for 55 Package By Marten Ovaere; Stef Proost
  6. Financing Energy Innovation: Internal Finance and the Direction of Technical Change By Joëlle Noailly, Roger Smeets
  7. Limit Pricing and Entry Game of Renewable Energy Firms into the Energy Sector By Willi Semmler; Giovanni Di Bartolomeo; Behnaz Minooei Fard; Joao Paulo Braga
  8. "Wild" Tariff Schemes: Evidence from the Republic of Georgia By Anna Alberini; Levan Bezhanishvili; Milan Scasny
  9. Certification of low-carbon hydrogen in the transport market By Sai Bravo; Carole Haritchabalet
  10. Energy exchange among heterogeneous prosumers under price uncertainty By Marta Castellini; Luca Di Corato; Michele Moretto; Sergio Vergalli
  11. The determinants of electricity constraints by firms in developing countries By Mahamady Ouedraogo; Elizabeth Asiedu; Théophile Azomahou; Neepa Gaekwad
  12. Understanding countries’ net-zero emissions targets By Sirini Jeudy-Hugo; Luca Lo Re; Chiara Falduto
  13. Multi-Day-Ahead Electricity Price Forecasting: A Comparison of fundamental, econometric and hybrid Models By Philip Beran; Arne Vogler
  14. Heard the News ? Environmental Policy and Clean Investments By Joëlle Noailly, Laura Nowzohour, Matthias van den Heuvel
  15. The Non-Linear Response of US State-Level Tradable and Non-Tradable Inflation to Oil Shocks: The Role of Oil-Dependence By Xin Sheng; Hardik A. Marfatia; Rangan Gupta
  16. The European Electricity Market Model EMMA - Model Description By Hirth, Lion; Ruhnau, Oliver; Sgarlato, Raffaele
  17. Energy prices, generators, and the (environmental) performance of manufacturing firms: Evidence from Indonesia By Greve, Hannes; Kis-Katos, Krisztina; Renner, Sebastian
  18. Photovoltaics and the Solar Rebound: Evidence for Germany By Frondel, Manuel; Kaestner, Kathrin; Sommer, Stephan; Vance, Colin
  19. Akzeptanz der CO2-Bepreisung in Deutschland: Evidenz für private Haushalte vor Einführung des CO2-Preises By Frondel, Manuel; Helmers, Viola; Mattauch, Linus; Pahle, Michael; Sommer, Stephan; Schmidt, Christoph M.; Edenhofer, Ottmar
  20. The global carbon footprint of Austria's consumption of agricultural (food and non-food) products By Frey, Verena; Bruckner, Martin
  21. Economic Policies of GCC Countries in the Era of Low Oil Prices and Their Policy Implications for Korea By Lee, Kwon Hyung; Son, Sung Hyun; Jang, Yun Hee; Ryou, Kwang Ho
  22. "The Employer of Last Resort Scheme and the Energy Transition: A Stock-Flow Consistent Analysis" By Giuliano Toshiro Yajima
  23. Understanding reporting and review under Articles 6 and 13 of the Paris Agreement By Chiara Falduto; Jane Ellis; Katia Simeonova
  24. Labour Markets and the Green Transition: a practitioner’s guide to the task-based approach By VONA Francesco
  25. Will COVID-19 change the calculus of climate policy? By Rutherford, Thomas F.; Böhringer, Christoph
  26. Why abandoning the paradise? Stations incentives to reduce gasoline prices at first By Wein, Thomas
  27. Committing to behave pro-environmentally: An assessment of time and regulatee-size effects on the demand for environmental regulation By Alt, Marius
  28. Pledge and Review Bargaining in Environmental Agreements: Kyoto vs. Paris By Eichner, Thomas; Schopf, Mark
  29. Complementarity between labor and energy: A firm-?level analysis By Lucas Bretschger; Ara Jo
  30. New insights into the environmental Kuznets curve hypothesis in developing and transition economies : a literature survey By Alexandra-Anca Purcel
  31. Inequality, unemployment, and poverty impacts of mitigation investment: evidence from the CDM in Brazil and implications for a post-2020 mechanism By David Grover; Swaroop Rao
  32. Financing human-centred COVID-19 recovery and decisive climate action worldwide international cooperation’s twenty-first century moment of truth By Samans, Richard.
  34. Real-World Simulations of Life with an Autonomous Vehicle Suggest Increased Mobility and Vehicle Travel By Harb, Mustapha; Walker, Joan; Malik, Jai; Circella, Giovanni
  35. Green Public Procurement: Potenziale einer nachhaltigen Beschaffung. Emissionsvermeidungspotenziale einer nachhaltigen öffentlichen Beschaffung am Beispiel klimafreundlicher Baumaterialien auf Basis von grünem Wasserstoff By Fischer, Andreas; Küper, Malte
  36. Energy exchange among heterogeneous prosumers under price uncertainty By Davide Bazzana; Michele Colturato; Roberto Savona
  37. Estimating the Benefits to Florida Households from Avoiding Another Gulf Oil Spill Using the Contingent Valuation Method: Internal Validity Tests with Probability-based and Opt-in Samples By John C. Whitehead; Andrew Ropicki; John Loomis; Sherry Larkin; Tim Haab; Sergio Alvarez
  38. With a little help from my friends: Debt renegotiation and climate change By Juan Camilo Cárdenas; Fernando Jaramillo; Diana León; María del Pilar López Uribe; Mauricio Rodriguez; Hernando Zuleta
  39. The Expectations Channel of Climate Change:Implications for Monetary Policy By Müller, Gernot; Dietrich, Alexander; Schoenle, Raphael
  40. Enjeux climat : réussir la transition en Afrique By François-Xavier Bellocq,; François-Xavier Duporge,; Mathilde Gauthier,; Annabelle Laferrère,; Bertrand Reysset
  41. Fourth Industrial Revolution in Japan: Technology to Address Social Challenges By Kim, Gyupan; Lee, Hyongkun; Lee, Boram; Lee, Jungeun; Son, Wonju

  1. By: Leroutier, Marion (Mistra Center for Sustainable Markets (Misum))
    Abstract: Decreasing greenhouse gas emissions from electricity generation is crucial to tackle climate change. Empirically, however, little is known about the effectiveness of existing 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. Relative to a synthetic control unit built from other European countries, I find that emissions from the UK power sector declined by 20 to 26 percent per year on average between 2013 and 2017. The tax operated via three mechanisms: 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 for plants already at risk due to European air quality regulations.
    Keywords: carbon tax; electricity generation; synthetic control method
    JEL: D22 H23 Q41 Q48
    Date: 2021–10–26
  2. By: Sebastian Rausch; Hidemichi Yonezawa (Statistics Norway)
    Abstract: Technology policy is the most widespread form of climate policy and is often preferred over seemingly efficient carbon pricing. We propose a new explanation for this observation: gains that predominantly accrue to households with large capital assets and that influence majority decisions in favor of technology policy. We study climate policy choices in an overlapping generations model with heterogeneous energy technologies and distortionary income taxation. Compared to carbon pricing, green technology policy leads to a pronounced capital subsidy effect that benefits most of the current generations but burdens future generations. Based on majority voting which disregards future generations, green technology policies are favored over a carbon tax. Smart "polluter-pays" financing of green technology policies enables obtaining the support of current generations while realizing efficiency gains for future generations.
    Keywords: Climate Policy; Green Technology Policy; Carbon Pricing; Overlapping Generations; Intergenerational Distribution; Social Welfare; General Equilibrium
    JEL: Q54 Q48 Q58 D58 H23
    Date: 2021–10
  3. By: AGUIR BARGAOUI, Saoussen
    Abstract: Environmental challenges in MENA countries deserve more attention as they are pursuing economic growth and expanding urbanization, and the geographical position of these countries make them more exposed to the outcomes of climate change. In this context, this paper focuses on the proposed solutions for the climate change problem that are renewable energies and the use of fossil fuel effectively in the context of growing urbanization in the MENA region. Indeed, using the GMM estimator for 18 MENA countries during the period 2000-2018, we try to quantify the magnitude of the impact of population, economic prosperity, urbanization, fossil fuels, energy efficiency, and renewable energies, especially solar, wind, and hydropower energies on CO2 emissions. Results allow the environmental Kuznets curve validation and highlight the contribution of energy efficiency in improving the environment. However, the used proportion of renewables in the energy mix does not significantly affect environmental quality. Moreover, solar energy contributes to emissions reduction. While the adopted level of wind and hydropower energy does not allow these countries to improve their environment.
    Keywords: Renewable energy, energy efficiency, Solar energy, Wind energy, Hydropower energy
    JEL: Q2 Q3 Q42 Q5
    Date: 2021–08–15
  4. By: Lehr, Jakob; Rehdanz, Katrin
    JEL: Q41 Q53 D22
    Date: 2021
  5. By: Marten Ovaere; Stef Proost (-)
    Abstract: This paper surveys climate and energy policy in the EU transport sector covering the road, aviation, and shipping sectors. We summarise current policies, focusing on the Fit for 55 Package, and categorise them according to their targeted decision stage (consumption, investment, or research) and the type of instrument being used (e.g. cap-and-trade, tax, mandate, performance standard, or subsidy). Next, we analyse the cost-efficiency of the different policies and instruments. We find that they address a range of market inefficiencies, but that there are still a number of aspects that can further improve the cost-effectiveness of current EU climate policies in the transport sector. For example, higher taxes and an emission performance standards for aviation and shipping, the right combination of R&D investments and learning-by-doing policies, and balancing implicit carbon prices by revising the road tax system and adding congestion tolls and charges. Finally, European policy has important side effects on the rest of the world that need to be taken into account in the selection of policies. This improved set of policies can support a sustainable recovery and reach the European Union’s climate targets at the lowest cost.
    Keywords: European energy policy, European climate policy, European transport, policy, road transport, aviation, shipping, Fit for 55 Package
    Date: 2021–11
  6. By: Joëlle Noailly, Roger Smeets
    Abstract: Achieving the goals of the Paris Agreement and of climate neutrality by 2050 in the European Union will require mobilizing financial investments towards clean energy innovation. This study examines the role of internal finance (cash flows and cash holdings) and financing constraints for innovation in energy technologies. We construct a dataset for 1,300 European firms combining balance-sheet information and patenting activities in renewable (REN) and fossil-fuel (FF) technologies and estimate the sensitivity of patenting activities to firm’s internal finance. We use count estimation techniques and control for a large set of firm-specific characteristics and market developments in REN and FF technologies. We find that patenting activities of firms specialized in REN innovation are significantly more sensitive to a shock in cash flows than firms specializing in FF innovation. Hence, our results emphasize that innovative firms in clean energy may be particularly vulnerable to financing constraints. We discuss the implications of these results for energy transition policies aiming to redirect finance towards clean energy R&D.
    Date: 2021–11–02
  7. By: Willi Semmler; Giovanni Di Bartolomeo; Behnaz Minooei Fard; Joao Paulo Braga
    Abstract: Governments attempt to provide the energy sector with incentives to replace old technologies with new ones based on renewable energy as the most effective way to combat climate change. Yet in the energy sector prevail fossil fuel incumbents that inhibit renewable energy entrants. Our paper provides a game-theoretic stylization of competition between those two types of firms. Incumbents set prices and entrants respond with quantity adjustments. In the context of a dynamic limit pricing model, we study the entry dynamics in a market in which the dominant firms (fossil fuel energy suppliers) face the entry of a group of competitive fringe firms (renewable energy suppliers) when the dominant firms have easier access to financial markets, but the fringe firms finance their expansion with internal finance. We also investigate the effect of the public support of renewable energy firms through subsidies. Our model is built on Judd and Peterson (1986, JET), but our solutions are obtained through a non-linear model predictive control algorithm. By this technique, we can predict the outcome of the competition between incumbents and entrants and the impact of financial and fiscal policies considering moving-horizon strategies.
    Keywords: Global warming; Renewable energy; Limit pricing; Strategic entry game; Non-linear model predictive control
    JEL: D40 D21 D43
    Date: 2021–10
  8. By: Anna Alberini (AREC, University of Maryland, College Park & Charles University, Prague, Czech Republic); Levan Bezhanishvili (Charles University, Prague, Czech Republic); Milan Scasny (Charles University, Institute of Economic Studies at Faculty of Social Sciences & The Environment Center)
    Abstract: Consumers often struggle to grasp complicated pricing plans, including increasing block rate (IBR) schemes, which have been used for decades by utilities in many parts of the world. The assumption that they encourage conservation has, however, recently been challenged (Ito, 2014). We take advantage of the unique IBR tariffs for electricity in the Republic of Georgia - where "overage" is penalized more heavily than in conventional IBR - to ask whether consumers respond to price, and to which price specifically. Based on the data from several waves of the Georgia Household Budget Survey, we find evidence of "notches," namely missing probability mass on the right of the lowest block cutoff and a spike in the frequency of monthly consumption to the left of it. This is in contrast with the "bunching" pattern predicted by Borenstein (2009) when demand is not completely inelastic, and with the empirical evidence in Borenstein (2009) and Ito (2014). During our study period (2012-2019), the tariffs were revised - both downwards and upwards - to a different extent in different blocks and at different times across the regions of the country. We devise difference-in-difference study designs that exploit such natural experiments, finding that consumption did increase when the tariffs were reduced and fell when they were raised. Ours is one of the few studies that exploits quasi experimental conditions to examine whether the response to price changes is symmetric. We find that it is, in that the implied price elasticity of electricity demand is in both cases -0.3. Finally, we fit an electricity demand function, which results in an even stronger price elasticity (-0.5). Households seem to respond to the actual, average price (here equal to the marginal price) rather than to expected price. Our estimates of the price elasticity bode well for a carbon tax, an energy tax, or simple tariff increases to help curb imports of gas-fired electricity from neighboring countries.
    Keywords: residential electricity demand, price elasticity, increasing block rates, tariff schemes, asymmetric response to price changes
    JEL: D12 Q41 Q48
    Date: 2021–10
  9. By: Sai Bravo (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique); Carole Haritchabalet (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper develops a theoretical framework to study the deployment of free-of-emissions green hydrogen in the transport sector. We consider a vertically related market with hydrogen producers upstream and fuel stations downstream. Production technologies differ in cost efficiency and carbon emissions. We show that when consumers have limited information about the hydrogen origin, no new green producers are able to enter the market. A label for green hydrogen allows multiple production technologies to co-exist, but society is better off when producers use vertical restraints to increase consumers' information.
    Keywords: Label,Vertical Restraints,Innovation,Hydrogen
    Date: 2021–10–08
  10. By: Marta Castellini (Università degli Studi di Brescia, Fondazione Eni Enrico Mattei); Luca Di Corato (Ca’ Foscari University of Venice); Michele Moretto (Università degli Studi di Padova); Sergio Vergalli (Università degli Studi di Brescia, Fondazione Eni Enrico Mattei)
    Abstract: In this paper, we provide a real options model framing prosumers’ investment in photovoltaic plants. This is presented in a Smart Grid context where the exchange of energy among prosumers is possible. We determine the optimal size of the photovoltaic installations based on the influence the self-consumption profiles on the exchange of energy among prosumers. We calibrate the model using figures relative to the Northern Italy energy market and investigate the investment decision allowing for different prosumer profiles and consider several combinations of their individual energy demand and supply. Our findings show that the shape of individual energy demand and supply curves is crucial to the exchange of energy among prosumers, and that there could be circumstances under which no exchange occurs.
    Keywords: Smart Grids, Renewable Energy Sources, Real Options, Prosumer, Peer to Peer Energy Trading
    JEL: Q42 C61 D81
    Date: 2021–10
  11. By: Mahamady Ouedraogo (CERDI - Centre d'Études et de Recherches sur le Développement International - UdA - Université d'Auvergne - Clermont-Ferrand I - CNRS - Centre National de la Recherche Scientifique); Elizabeth Asiedu; Théophile Azomahou; Neepa Gaekwad
    Date: 2021–10
  12. By: Sirini Jeudy-Hugo (OECD); Luca Lo Re (International Energy Agency); Chiara Falduto (OECD)
    Abstract: This paper analyses net-zero emissions targets adopted in law, proposed in legislation, or reflected in policy documents in 51 countries and the EU to better understand their characteristics, similarities and differences. It examines countries’ experiences with translating net-zero targets into near-term plans and analyses four case studies to show how countries develop and implement different pathways to net-zero. This paper also explores the potential role and associated risks, both for individual countries and globally, of using international carbon markets to help achieve countries’ net-zero targets. The paper concludes that countries are adopting diverse approaches to their net-zero targets and many details are currently unclear, including the balance between emission reductions, removals and the use of international carbon markets in reaching countries’ net-zero targets, and how this may change over the next few decades. The paper concludes that greater clarity on the scope, coverage and detail, in particular how countries plan to meet their net-zero commitments, is important to improve understanding of countries’ net-zero targets, how they interact with each other, and their overall implications for achieving the global temperature goal of the Paris Agreement.
    Keywords: carbon markets, Climate change, LT-LEDS, NDCs, net-zero, Paris Agreement
    JEL: Q54 Q56 Q58 F53
    Date: 2021–10–27
  13. By: Philip Beran; Arne Vogler (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen)
    Abstract: Forecasting hourly electricity prices and their characteristic properties is a core challenge for energy generation companies and trading houses. The short-term marketing and purchase of electricity is usually managed with standardized products traded on different markets and with specific temporal resolution and maturity. The size and scope of the electricity price forecasting literature has grown significantly in recent years, with the majority of studies focused on short-term (intraday and day-ahead) or long-term (investment decisions) periods. However, the literature for forecasting the period beyond the day-ahead horizon, which is relevant for trading the aforementioned products or for managing assets over several days, is rather scarce. Our paper fills this gap by developing individual forecasting models covering horizons from the day ahead up to a week ahead. We introduce hybrids of a parsimonious fundamental model and various popular econometric models. In a case study for the German day-ahead market in 2016 we test and compare the different model settings by carefully considering realistic available data and limiting the calculation time to fit typical trading time constraints. We find that the best models across the individual horizons and across all horizons jointly are hybrid model approaches. They combine the strengths of autoregressive models in terms of capturing daily - even non-linear-structures with the immediate reactions of fundamental models to short-term events or fundamental changes in the market.
    Keywords: Electricity markets, Electricity Price Forecasting, Hybrid Modeling, Fundamental Modeling, Econometric Modeling, German Day-Ahead Market
    JEL: C13 C22 C51 Q41 Q47
    Date: 2021–10
  14. By: Joëlle Noailly, Laura Nowzohour, Matthias van den Heuvel
    Abstract: We build a novel news-based index of US environmental policy and examine how it relates to clean investments. Extracting text from ten leading US newspapers over the last four decades, we use text-mining techniques to develop a granular index measuring the salience of US environmental policy (EnvP) over the 1981-2019 period. We develop further a set of additional measures, namely an index of sentiment on environmental policy, as well as various topic-specic indices. We validate our index by showing that it correctly captures trends and peaks in the evolution of US environmental policy and that it has a meaningful association with clean investments, in line with environmental regulations supporting growing opportunities for clean markets. In firm-level estimations, we find that the salience of environmental policy in newspapers is associated with a greater probability of cleantech startups receiving venture capital (VC) funding and reduced stock returns for high-emissions firms most exposed to environmental regulations. At the aggregate level, we find in VAR models that a shock in our news-based index of renewable energy policy is associated with an increase in the number of clean energy VC deals and in the assets under management of the main benchmark clean energy exchange-traded fund. Overall, our EnvP index provides a lot of substantial information on environmental policy and can help assist the policy and financial community in understanding how these regulations are perceived by investors — providing many avenues for future research.
    Date: 2021–11–02
  15. By: Xin Sheng (Lord Ashcroft International Business School, Anglia Ruskin University, Chelmsford, CM1 1SQ, United Kingdom); Hardik A. Marfatia (Department of Economics, Northeastern Illinois University, 5500 N St Louis Ave, BBH 344G, Chicago, IL 60625, USA); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa)
    Abstract: This paper investigates the effects of oil supply, oil-specific consumption demand, oil inventory demand shocks, and global economic activity shocks on state-level tradable and non-tradable inflation in the US. We estimate both linear and non-linear impulse responses using a lag-augmented local projections model in a panel context. Our results from a linear model show that both supply and demand-side oil shocks have a statistically significant impact on both types of inflation. While supply, global economic activity, and demand shocks have a greater impact on tradable inflation, non-tradable inflation responds more strongly to inventory shocks. Further, the non-linear model results provide evidence of heterogeneity in the magnitude and persistence of impact between high- and low-oil dependence regimes. Non-tradable inflation is more sensitive to nearly all components of oil price shocks in the high-oil dependence regime.
    Keywords: Phillips curve, Structural oil shocks, State-level inflation, Local projection method
    JEL: E31 E32 Q43
    Date: 2021–10
  16. By: Hirth, Lion; Ruhnau, Oliver; Sgarlato, Raffaele
    Abstract: The Electricity Market Model EMMA is a techno-economic model of the integrated European power system. It simulates investment, dispatch, and trade, minimizing total costs subject to a large set of technical constraints. In economics terms, it is a partial equilibrium model of the wholesale electricity market. It calculates scenario-based or green-field optima (equilibria) and estimates the corresponding capacity mix as well as hourly prices, generation, storage dispatch, flexible consumption, and cross-border trade for each market area. Technically, EMMA is a linear program, written in GAMS and solved by CPLEX on a desktop computer in about two hours. EMMA has been used for a number of peer-reviewed publications as well as in consulting projects. EMMA is open-source: the model code and input data are freely available under the MIT Software License and the Create Commons BY-SA 4.0 License, respectively, and can be downloaded from
    Date: 2021
  17. By: Greve, Hannes; Kis-Katos, Krisztina; Renner, Sebastian
    JEL: O14
    Date: 2021
  18. By: Frondel, Manuel; Kaestner, Kathrin; Sommer, Stephan; Vance, Colin
    JEL: Q41
    Date: 2021
  19. By: Frondel, Manuel; Helmers, Viola; Mattauch, Linus; Pahle, Michael; Sommer, Stephan; Schmidt, Christoph M.; Edenhofer, Ottmar
    Abstract: Im Jahr 2021 wurde in Deutschland die sogenannte CO2-Bepreisung fossiler Kraft- und Brennstoffe eingeführt, um deren Verbrauch zum Zwecke des Klimaschutzes zu reduzieren. Dieser Preisaufschlag auf fossile Energieträger wird in den kommenden Jahren sukzessive erhöht. Dieser Beitrag untersucht die Akzeptanz der CO2-Bepreisung für die Zeit kurz vor Einführung des CO2-Preises im Jahr 2019. Eine Erhebung unter mehr als 6.000 Haushalten zeigt, dass eine leichte absolute Mehrheit von 53,7% der Befragten grundsätzlich bereit ist, zu Klimaschutzzwecken höhere Kosten in Kauf zu nehmen. Die Zustimmung zu einer CO2-Bepreisung nimmt jedoch mit sinkendem Einkommen deutlich ab: Bei Befragten der untersten Einkommensgruppe liegt die Zustimmungsrate bei knapp unter 40%. Erwartungsgemäß verringert sich die Zustimmung auch mit der Höhe des CO2-Preises. So wurde ein CO2-Preis von 50 Euro von einer Mehrheit der Befragten von 50,6% abgelehnt. Um bei bis zum Jahr 2025 auf 55 Euro steigenden CO2-Preisen die mehrheitliche Akzeptanz der Bürger zu gewinnen, wird hier für einen breit angelegten Ausgleichsmechanismus durch Reduzierung verzerrender und sozial ungerechter Steuern und Abgaben auf den Strompreis plädiert, der insbesondere Gering- und Durchschnittsverdienern zugutekommt. Andernfalls könnten die über die Zeit steigenden CO2-Preise eine hohe soziale Sprengkraft entfalten.
    Keywords: Diskretes Entscheidungsexperiment,Panelerhebung,Klimawandel
    JEL: D12 C25
    Date: 2021
  20. By: Frey, Verena; Bruckner, Martin
    Abstract: Agricultural production is one of the largest contributors to global greenhouse gas emissions. High-income countries like Austria source large quantities of feed, food and nonfood crops abroad thereby outsourcing emissions. Understanding global supply chains and geographical patterns of the trade with agricultural products is crucial for taking on responsibility for consumption-based emissions arising in other world regions. This study investigates Austria’s carbon footprint capturing all emissions from global agriculture associated with the consumption of food and non-food products. The analysis gives detailed insights into the contribution of various products and product categories, countries and regions, and carbon emitting processes across global supply chains, while comprehensively capturing all products consumed in Austria including their upstream emissions. The results show that while emission sources vary considerably for different consumption products, animal-based products account for the major part of emissions across the source regions. About 64% of Austrian emissions related to Austria’s carbon footprint of food products occur outside Austrian borders. Most emissions origin in Austria itself (36%), the rest of Europe (22%) and Asia (19%) and Latin America (14%). More than two thirds of emissions are related to the consumption of meat and other animal-based products. The results show the importance of consumption patterns, especially of meat and other animal products, for the Austrian footprint, which implies a great reduction potential through alternative diets and indicates clear limitations for emission mitigation strategies that instead focus on production efficiency.
    Date: 2021
    Abstract: Over the past several decades, the six member countries of the Gulf Cooperation Council (GCC) have implemented economic policies for industrial diversification to lessen severe dependence on the oil industry. Such policy efforts have been driven by their awareness of macro-economic and structural risks from heavy volatilities in international oil markets in terms of fiscal and trade sectors. For instance, the drop in international oil prices reduces export performance in the oil and natural gas sectors, which in turn results in a decline in the stability of fiscal revenue. The recent trends of low oil prices since 2014, as well as high unemployment rates, have strengthened the policy regime for industrial diversification and job creation supported by mid- to long-term economic plans of the GCC countries. This report reviews what has been emphasized in the areas of industrial, employment, trade and investment policies. We then derive implications for Korean companies and policymakers for sustainable cooperation between Korea and the Middle East.
    Keywords: GCC; Gulf Cooperation Council; oil price; economic policy; Korea;
    Date: 2021–02–09
  22. By: Giuliano Toshiro Yajima
    Abstract: The health and economic crises of 2020-21 have revived the debate on fiscal policy as a major tool for stabilization and meeting long-term goals. The massive surge in unemployment, due to the economic disruption of the lockdown measures, has increased the interest in policies that target employment directly instead of trying to achieve it via a general "demand push." One of the proposals currently under debate is the job guarantee. Under such a policy the government would act as an "employer of last resort" by offering a job to everyone that is able and wants to work but cannot find a job in the private sector. This paper argues that a carefully designed scheme of direct employment and public provision by the state--addressing both the low- and high-skill workforce--can have permanent effects and promote the economy's structural transformation, in particular by fostering energy transition and a lower carbon footprint. Starting from this point, a stock-flow consistent model is developed to study the long-run effect of the job guarantee's implementation, inspired by the work of Godin (2013) and Sawyer and Passarella (2021).
    Keywords: Stock-Flow Consistent Models; Job Guarantee; Structural Change; Energy Transition
    JEL: B52 J68 Q43
    Date: 2021–11
  23. By: Chiara Falduto (OECD); Jane Ellis (OECD); Katia Simeonova
    Abstract: Reporting and review requirements under the Paris Agreement include provisions under Article 13 relating to the implementation and achievement of Parties’ Nationally Determined Contributions (NDCs). Draft texts relating to Article 6.2 relating to Parties’ use of cooperative approaches also include provisions on reporting and review. This document identifies and analyses issues related to the interplay of relevant reporting and review requirements under both Article 13 and Article 6 of the Paris Agreement, as it is important to improve complementarity and ensure consistency between the two sets of reporting and review provisions, as well as to meet the already-agreed principles governing transparency. Regarding reporting, the document highlights options for improving the clarity of the provisions concerning the timing, content, and frequency of the three required types of information under Article 6.2 guidance (i.e., the initial report, annual information, and regular information). Regarding Internationally Transferred Mitigation Outcomes (ITMOs), this document highlights several issues relating to timing and vintages that would need to be addressed to facilitate ITMO reporting and review implementation. Regarding review provisions, this document finds that draft A6.2 guidance could usefully provide further detail on some substantive aspects of the Article 6 review process, such as, e.g., clarifying roles of the Party, the TER team, and the secretariat in the review process.
    Keywords: Article 6, carbon markets, Enhanced Transparency Framework, Paris Agreement, reporting, review
    JEL: F53 Q29 Q49 Q54 Q56 Q58
    Date: 2021–10–27
  24. By: VONA Francesco
    Abstract: Studies on the relationship between “green policies” and the labour market have been often relegated to the grey literature due to the lack of clear definitions of green jobs and skills. Primarily, uncoordinated statistical efforts across countries did not help build a common set of standardised measures for the green economy that can be used for policy evaluation. With the growing interest in the low-carbon transition and the urgent need to monitor and assess the effect of large-scale post-pandemic green stimuli, it is of paramount importance to build a widely accepted framework that can be used to analyze the structural transformations in the labour market associated with the greening of our economies. This report makes the case that the task-based approach is the best solution to these problems.
    Keywords: task-based approach, green tasks and job, green skills, reallocation costs, distributional effects of environmental policies, green stimulus packages
    Date: 2021–10
  25. By: Rutherford, Thomas F.; Böhringer, Christoph
    JEL: C61 D61 Q54
    Date: 2021
  26. By: Wein, Thomas
    JEL: L13 L41 K21
    Date: 2021
  27. By: Alt, Marius
    JEL: Q58 D04 C91
    Date: 2021
  28. By: Eichner, Thomas; Schopf, Mark
    JEL: C71 F55 Q54
    Date: 2021
  29. By: Lucas Bretschger (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland); Ara Jo (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)
    Abstract: This paper adds a fresh angle to the on-going debate on the potential negative employment effect of environmental policy by bringing to the fore a key factor that directly regulates its magnitude: the elasticity of substitution between labor and energy. Using firm-level data from the French manufacturing sector, we provide rigorous micro estimates of this parameter that point to strong complementarity between labor and energy. We then provide clear evidence for the empirical, as well as theoretical, relevance of the elasticity of substitution in understanding the effect of environmental policies on employment.
    Keywords: market-based regulation, employment, elasticity of substitution
    JEL: Q40 Q54 Q55 O33
    Date: 2021–10
  30. By: Alexandra-Anca Purcel (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)
    Abstract: We perform an updated literature survey on pollution-growth nexus via the environmental Kuznets curve (EKC) hypothesis, both from theoretical and empirical standpoints. First, we conduct a literature review on the most well-known rationale behind the EKC prevalence and discuss the key components of the research design when estimating the EKC. Second, we bring together the most influential empirical papers published in the last decade, which focus on EKC estimation in developing and transition economies. Overall, succeeding to curtail some of the deficiencies suggested by theoretical contributions, the recent empirical studies might indicate a certain consensus regarding pollution-growth nexus, and EKC validity. On one hand, reinforcing the EKC nature, several studies reveal a long-run relationship between indicators. On the other hand, according to income coefficients' signs, the traditional bell-shaped pattern seems to be at work for some developing and transition economies. However, in some cases, the estimated turning point lies outside the income sample range, calling into question not only the true pattern between pollution and growth but also the identification of EKC. Taken collectively, both the theoretical foundations and empirical evidence, could contribute to a better understanding of the pollution-growth nexus in the EKC context, and suggest some useful insights into the future works on the subject as well as the crucial policy implications in this group of countries.
    Date: 2020–10
  31. By: David Grover (GEM - Grenoble Ecole de Management); Swaroop Rao (GEM - Grenoble Ecole de Management, IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc)
    Abstract: Article 6 of the Paris Agreement provides for the creation of a successor to the Clean Development Mechanism (CDM), the parameters of which are currently being operationalised. This paper uses the broad literature on the relationship between general foreign direct investment (FDI) and inequality in FDI host countries to develop expectations about the likely impact of past and future international mitigation investment on inequality, unemployment and poverty outcomes. Using 2000 and 2010 census data for small geographic areas in Brazil, we compare the change in those outcomes in areas that experienced CDM project activity to the same in areas that did not, using a difference-indifference approach. We find that areas with CDM project activity experienced improvements in those outcomes, which appear to be driven by project types that are associated with 'primary' sector activity. Including measurement and reporting procedures for these broader sustainable development outcomes in the rulebook of a post-2020 agreement could be favourable to the interests of both developed and developing countries.
    Date: 2020
  32. By: Samans, Richard.
    Abstract: International cooperation and financing for development in particular face a moment of truth. A lack of national capacity to combat the COVID-19 pandemic and climate change anywhere is a threat to the security and well-being of people everywhere. The most feasible way to mobilize the large additional sums required to advance a fully inclusive, human-centred recovery from the pandemic and a rapid acceleration of climate action on a worldwide basis – including in resource-constrained low-and lower-middle-income countries – is for the international community to apply the public capital it has already invested in the International Monetary Fund and multilateral development banks more efficiently and expansively. This could be achieved by applying the balance sheets and tools of these institutions just as imaginatively for such common purposes as those of central banks and treasuries in advanced countries have been applied for domestic purposes during the pandemic. The paper proposes a set of initiatives to this end in order to fully fund the WHO ACT-A/COVAX Initiative, adequately resource debt relief and restructuring, social protection floors and job-rich sustainable infrastructure and industry in these countries, and finance a global effort to avoid a lock-in of greenhouse gas emissions from coal-fired power generation, which represents the single largest and most time sensitive aspect of the climate action required to achieve the goals of the Paris climate agreement. This fuller utilization of the existing international financial architecture to implement multilaterally agreed objectives would generate an average increase in annual external flows of about 4% of GDP to 82 poorer developing countries during the next seven years, exceeding the Marshall Plan’s support of Europe’s efforts to “build back better” from World War II, while using such additional international assistance in a similar manner to generate complementary increases in domestic resource mobilization.
    Keywords: international cooperation, aid financing, economic recovery, COVID-19, climate change
    Date: 2021
  33. By: Johanna Ayrault (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Franck Aggeri (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The district heating (DH) market is undergoing a change with the emergence of Sustainable District Heating (SDH), based on renewable locale resources, as a building block for a local ecological transition. However, research on DH tends to focus on technological solutions to support this transition. Business models, especially innovative and sustainable business models (SBM) are overlooked although management scholars have stressed they played a key role in ecological transitions. SDH have a strong local anchorage with the integration of multiple stakeholders to the BM since resources at stake may be varied and require strong coordination and the setting of governance mechanisms to build durable networks. The complexity of such networks is well described on the industrial ecology literature. To what extent the industrial ecology framework may help to design another perspective on SBM for DH at a local scale? To answer this question we analyze two French DH case studies that were pioneers in the integration of renewable heat to their energy mix. We stress how the introduction of a new value proposition, based on sustainable concerns, can change the set of resources and competences and organization (both internal and external), which according to Demil and Lecocq (2010) represent the three pillars in dynamic interaction of a BM. We also study this change through the industrial ecology framework (Brullot, 2009), especially focusing on the design of a shared imaginary and governance as two aspects ensuring the durability of the SBM.
    Keywords: Industrial ecology,Sustainable business models,District heating
    Date: 2021–06–16
  34. By: Harb, Mustapha; Walker, Joan; Malik, Jai; Circella, Giovanni
    Abstract: Fully autonomous vehicles are expected to have a profound effect on travel behavior. The technology will provide convenience and better mobility for many, allowing owners to perform other tasks while traveling, summon their vehicles from a distance, and send vehicles off to complete tasks without them. These travel behaviors could lead to increases in vehicle miles traveled that will have major implications for traffic congestion and pollution. To estimate the extent to which travel behavior will change, researchers and planners have typically relied on adjustments to existing travel simulations or on surveys asking people how they would change their behavior in a hypothetical autonomous vehicle future. Researchers at UC Berkeley and UC Davis used a new approach to understand the potential influence of autonomous vehicles on travel behavior by conducting the first naturalistic experiment mimicking the effect of autonomous vehicle ownership. Private chauffeurs were provided to 43 households in the Sacramento, California region for one or two weeks. By taking over driving duties for the household, the private chauffeurs served the household as an autonomous vehicle would. Researchers tracked household travel prior to, during, and after the week(s) with access to the chauffeur service.
    Keywords: Engineering
    Date: 2021–11–01
  35. By: Fischer, Andreas; Küper, Malte
    Abstract: Mit einem jährlichen Investitionsvolumen von knapp 500 Milliarden Euro geht von der öffentlichen Beschaffungin Deutschland ein enormes Potenzial für den Erwerb klimafreundlicher Produkte und Dienstleistungen aus. Auf diese Weise können durch öffentliche Investitionen nicht nur Treibhausgasemissionen vermieden, sondern auch erste Leitmärkte für klimafreundliche Produkte geschaffen werden. Neben positiven Effekten auf die Kostenentwicklung durch Skalen- und Lerneffekte, kann durch die Vorbildfunktion auch dieAkzeptanz neuartiger Güter bei Privatkunden gestärkt werden.Die hierzu nötigen Rahmenbedingungen auf nationaler wie auch auf europäischer Ebene existieren bereits. Es bestehen allerdings Hemmnisse bei der Umsetzung, hauptsätzlich aufgrund des hohen Informationsbedarfs und Verwaltungsaufwands sowohl für die zuständigen Behörden als auch für die betroffenen Unternehmen. [...]
    JEL: H57 Q48 Q58
    Date: 2021
  36. By: Davide Bazzana (Fondazione Eni Enrico Mattei); Michele Colturato (University of Pavia); Roberto Savona (University of Brescia)
    Abstract: We model the learning process of market traders during the unprecedented COVID-19 event. We introduce a behavioral heterogeneous agents’ model with bounded rationality by including a correction mechanism through representativeness (Gennaioli et al., 2015). To inspect the market crash induced by the pandemic, we calibrate the STOXX Europe 600 Index, when stock markets suffered from the greatest single-day percentage drop ever. Once the extreme event materializes, agents tend to be more sensitive to all positive and negative news, subsequently moving on to close-to-rational. We find that the deflation mechanism of less representative news seems to disappear after the extreme event.
    Keywords: Agent-Based Model, Representativeness, Unprecedented Events
    JEL: G11 G12 G14 C63
    Date: 2021–10
  37. By: John C. Whitehead; Andrew Ropicki; John Loomis; Sherry Larkin; Tim Haab; Sergio Alvarez
    Abstract: This paper evaluates the importance of contingent valuation method data quality by examining differences in results between probability-based and opt-in internet samples. Our data is from a survey estimating passive use losses associated with the BP/Deepwater Horizon oil spill to Florida residents. Several internal tests of validity are conducted. We find that the willingness to pay estimates from the opt-in sample may be biased upwards and only the probability-based sample data pass the scope test. In general, we conclude that the probability-based sample data is of higher quality. Key Words: contingent valuation, scope test, probability-based sample data; opt-in sample data
    JEL: Q51
    Date: 2021
  38. By: Juan Camilo Cárdenas; Fernando Jaramillo; Diana León; María del Pilar López Uribe; Mauricio Rodriguez; Hernando Zuleta
    Abstract: The economic crisis from the Covid-19 pandemic has generated a fall in tax revenues and an increase in the need for public spending in most economies throughout the world. This situation has led to a substantial increase in the sovereign debt levels and has dramatically reduced the fiscal space of governments. For upper- middle-income countries (UMICs), current access to financing is limited and this can potentially limit the space for climate action in the short and medium run. However, delaying climate action can generate a negative signal on fiscal sustainability due to the physical and transition risks of climate change. Unsustainable production practices will result in a deterioration of the productive capacity of natural assets reducing potential tax income. Simultaneously there will be a stronger need for public spending to face the future damages associated to greenhouse gases emissions. Therefore, in order to address the current crisis, we need an integral approach that considers the climate crisis as a challenge with a high degree of urgency. For this approach to be feasible, sufficient international climate finance needs to be available, and it should help to steer relief and recovery efforts into a direction in which these are also compatible with climate targets. In this document, we propose a sovereign debt negotiation scheme in which the conditions of the debt depend on the climate policies undertaken by the debtor countries. Likewise, we point out that the feasibility of beneficial agreements for debtors and the implementation of good climate policies depend positively on the size of the debt and each country's potential to affect the current trend of climate change. For these reasons, the formation of coalitions of debtor countries can be a key factor for debt relief and the implementation of climate policies
    Keywords: Covid 19, Climate Change, Sovereign Debt, Coalitions, Climate Policy
    JEL: D62 D71 F34 G23 H63 Q50 Q54 Q58
    Date: 2021–10–20
  39. By: Müller, Gernot; Dietrich, Alexander; Schoenle, Raphael
    JEL: E43 E52 E58
    Date: 2021
  40. By: François-Xavier Bellocq,; François-Xavier Duporge,; Mathilde Gauthier,; Annabelle Laferrère,; Bertrand Reysset
    Abstract: L’Afrique possède de nombreux atouts pour maintenir une empreinte carbone faible tout en assurant son décollage économique. Une trajectoire de transition juste, conciliant les impératifs socio-économiques et climatiques, est possible. Elle nécessitera cependant un engagement fort des parties prenantes, africaines et internationales, en faveur des questions climatiques. Une mobilisation technique et financière accrue des États africains, des bailleurs de fonds et des banques publiques de développement africains et internationaux, et de tous les acteurs financiers du continent, permettra de financer et d’accompagner l’innovation climatique en plein essor sur le continent.
    Keywords: Afrique
    JEL: Q
    Date: 2021–10–27
    Abstract: In Japan, the challenges posed by its low birthrate and aging population expanded rapidly with the collapse of the bubble economy in the early 1990s, and in March 2011, energy and environmental problems such as power supply shortages and nuclear radiation issues occurred in the wake of the Great East Japan Earthquake and Fukushima nuclear accident. Also, with the beginning of the coronavirus pandemic in January 2020, digital transformation has emerged as a social challenge. In particular, Japan's aging population combined with a decrease in the working age population, has caused the government to face fiscal crisis due to the burden of social insurance, and a sense of crisis of labor shortage in the medical, manufacturing and logistics sectors. This is also leading to a sense of crisis at local governments as well, seen with the collapse of the medical service supply system under "Tokyo centralization," the rapid increase of the vulnerable in transportation due to the super-aging of rural areas, and the risk of extinction of local communities. The analysis on the healthcare and medical care sectors was conducted in chapter 2, and the manufacturing, mobility, and logistics sectors in Chapter 3, and the local revitalization in Chapter 4 respectively. And chapter 5 of conclusion remarks presents policy implications for the Korean government.
    Keywords: Japan; Fourth Industrial Revolution; social challenge; digital transformation; government
    Date: 2021–01–28

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