|
on Energy Economics |
| By: | Aude Pommeret (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Francesco Ricci (CEE-M - Centre d'Economie de l'Environnement - Montpellier - UMR 5211 - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique - Montpellier SupAgro - Institut national d’études supérieures agronomiques de Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Katheline Schubert (PSE - Paris School of Economics - ENPC - École des Ponts ParisTech - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique - EHESS - École des hautes études en sciences sociales - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Renewable energy generation and storage requires specialized capital goods, embedding critical raw materials (CRM). The scarcity of CRM therefore affects the transition from a fossil based energy system to one based on renewables, necessary to cope with climate change. We consider the issue in a theoretical model, where we allow for a very costly potential substitute, reflecting a backstop technology, and for partial and costly recycling of materials in capital goods. We characterize the main features of the efficient energy transition, and their dependence on the relative abundance of CRM and on the recycling technology. Recycling reduces the cost of the transition. It also calls for having a large stock of recyclable CRM embedded in specialized capital at the time of adoption of the backstop technology. Moreover, we consider constraints on policy tools and myopic regulation, and show how abstracting from the scarcity of CRM, or tightly linking subsidies for renewables to the carbon tax revenue, is misleading in designing climate policy. |
| Keywords: | material scarcity,recycling,energy transition,policy acceptability,myopia |
| Date: | 2021–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03429055&r= |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Sven Teske (UTS - University of Technology Sydney); Dimitri Pescia (Agora Energiewende); Mentari Pujantoro |
| Abstract: | The wind power sector took off in Vietnam after the feed-in tariff was raised to 8.5 UScents / kWh for onshore projects in 2018. As of March 2021, 113 wind projects with total capacity 6,038MW have signed a power purchase agreement. Most are expected to enter commercial operation before December 2021. We explore here three scenarios for wind power development in Vietnam through 2030. It argues that by 2030 the wind power installed capacity in the New Normal could be around 17 GW onshore and 10 GW offshore. In a Factor Three scenario, offshore wind reaches 21 GW by 2030. This has three policy implications. First, Vietnam's next power development plan provides an important opportunity to increase at low costs the level of ambition of wind power development. Second, flexibility should be the guiding principle of the plan. Third, to realize the large potential of offshore wind power, infrastructure planning has to start soon. |
| Keywords: | Wind energy,Vietnam,scenarios |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03446269&r= |
| By: | Salim Turdaliev (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic) |
| Abstract: | In this paper, I estimate the price elasticity of residential electricity demand using household-level panel data for Russia. The study takes advantage of the variation in tariffs across regions and over time, as well as the introduction of increasing block rate (IBR) tariff schemes in a number of regions. I show that in those regions consumers appear to be aware of the block cut-offs, even though the latter are household and dwelling-specific, to the point that there are a total of 35 different tier cut-offs. Based on these results, I estimate the price elasticity of electricity demand to be around -0.09. I also predict the associated changes in electricity consumption, CO2 emissions, and revenues if similar IBR policies are implemented countrywide. |
| Keywords: | residential electricity demand, transition economy, natural experiment, increasing block rates, attentiveness, CO2 emissions |
| JEL: | Q41 Q48 L98 L94 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2021_37&r= |
| By: | Jee, Su Jung; Srivastav, Sugandha |
| Abstract: | Do clean technologies learn from their dirty counterparts? Using patents granted by USPTO from 1976 to 2020, we evaluate the "intellectual distance" between clean and dirty technologies. Our measure of intellectual distance is intuitively similar to "degrees of separation" where 1 indicates that a clean patent directly cites a prior dirty patent, and 2 indicates that there is an intermediary technology. We find that less than one-tenth of clean patents directly cite prior dirty art. Since citations are a proxy for learning, this implies that for the most part, leveraging dirty knowledge to pivot into clean sectors is not straightforward. However, there is a high degree of heterogeneity. Some clean technologies such as geothermal energy, carbon capture and storage, and offshore wind learn significantly from dirty technologies, due to shared knowhow related to drilling, pollution-control and operating out at sea. Our analysis identifies "clean adjacent sectors" that build upon dirty knowledge inputs, which could be plausible diversification options for dirty firms. |
| Keywords: | Green Transition, Intellectual Distance, Clean Technology, Dirty Technology, Intellectual Carbon Lock-in |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:amz:wpaper:2021-22&r= |
| By: | 市川, 類; Ichikawa, Tagui |
| Abstract: | 近年、2050年までのカーボンニュートラルの実現は、世界的な最重要関心事項であり 、世界各国においては、その実現のために、成長戦略の一環として、グリーンイノベーシ ョンの推進に取り組んでいる。一般的に、カーボンニュートラルの実現については、多く の困難があることは理解されつつも、イノベーション推進によるその実現への期待は高く 、また、その実現可能性は完全には否定できない。しかしながら、そのカーボンニュート ラルのイノベーションによる実現については、過去の事例を踏まえると社会への普及まで 含めてどの程度の時間を要するのか、再生可能エネルギーの導入普及以外にどのような技 術システムのイノベーションが必要なのか、また、これらのイノベーションを経済成長に つなげるにはどうするかなどといった、イノベーションによる実現可能性やその理論から みた政策の方向については、これまで必ずしも十分に議論はなされていない。このような 問題意識のもと、本ワーキングペーパーにおいては、2050年までのカーボンニュート ラルの実現に向けて、これまでのエネルギー分野とそのシステムにおけるイノベーション に係る歴史と、将来のカーボンニュートラル型エネルギーシステムとのその実現に向けた イノベーションとその政策のあり方の両面から考察を行うことにより、イノベーションに よる実現可能な範囲の輪郭を捉え、その政策の方向を提示することを目的とする。具体的 には、過去のイノベーションによるエネルギーシステム改革の歴史からみると、カーボン ニュートラル実現には過去に前例がない急速でのシステム転換が求められること、近年の 日本を含む先進国でのCO2排出量の減少はエネルギー消費と経済成長とのデカップリン グの進展が大きな要因であり、そのカーボンニュートラルの実現には特に発展途上では大 きな困難があること、日本においても近年再エネの進展は進みつつあるが産業政策的には 必ずしも成功しなかったこと、また、今後再生可能エネルギーの普及拡大のみではカーボ ンニュートラルの実現は困難であり、供給安定性及び供給可能性（エネルギー安全保障） の観点から、システム自体の抜本的な改革とそのための多様な技術のイノベーションをセ ットで推進することが喫緊の課題であること、そのためには、蓄電・水素システムについ て物理化学的視点からの技術的な可能性を見極めるとともに、デジタル技術による全く新 たな分散型調整システムの設計が不可欠であることなどについて考察する。その上で、カ ーボンニュートラル型のエネルギーシステムの特徴を指摘した上で、カーボンニュートラ ルを実現するためのイノベーション政策としては、環境規制として位置付けに加え、長期 的な目標の社会的共有という特徴を踏まえて、バランスの取れたイノベーション政策の構 築の必要性であること、また、経済成長における汎用技術としてのエネルギー技術の位置 付けとその歴史を踏まえると、カーボンニュートラルの実現だけでは必ずしも経済成長は 見込まれず、デジタルイノベーションなどとの連携の下で取り組むことが必要であること などを論点として提示する。 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:hit:iirwps:21-04&r= |
| By: | Fraunholz, Christoph; Miskiw, Kim K.; Kraft, Emil; Fichtner, Wolf; Weber, Christoph |
| Abstract: | Investment decisions in competitive power markets are based upon thorough profitability assessments. Thereby, investors typically show a high degree of risk aversion, which is the main argument for capacity mechanisms being implemented around the world. In order to investigate the interdependencies between investors' risk aversion and market design, we extend the agent-based electricity market model PowerACE to account for long-term uncertainties. This allows us to model capacity expansion planning from an agent perspective and with different risk preferences. The enhanced model is then applied in a multi-country case study of the European electricity market. Our results show that assuming risk-averse rather than risk-neutral investors leads to slightly reduced investments in dispatchable capacity, higher wholesale electricity prices, and reduced levels of resource adequacy. These effects are more pronounced in an energy-only market than under a capacity mechanism. Moreover, uncoordinated changes in market design may also lead to negative cross-border effects. |
| Keywords: | Agent-based simulation,Capacity expansion planning,Risk aversion,Electricity market design,Energy-only market,Capacity mechanism |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:62&r= |
| By: | Tal, Gil; Lee, Jae Hyun; Ji, Wei; Davis, Adam |
| Abstract: | Plug-in electric vehicles (EVs) are quickly moving to the broader consumer market. While the home is still the primary location for recharging these vehicles, public EV charging infrastructure at workplaces, public destinations, and along travel corridors will be critical for the continued market growth of EVs. Governments will need to ensure that sufficient charging infrastructure is available at these locations to meet future demand. Researchers at the University of California, Davis Plug-In Hybrid & Electric Vehicle Research Center previously developed a planning toolbox for public charging infrastructure based on data available in California. The toolbox is a user-friendly set of modeling tools that allows planners to anticipate the future geographic distribution of EVs and the resulting optimal locations of charging infrastructure. To date, however, the tools have only been applied in California contexts with California-specific data. For this project, the UC Davis researchers adapted the toolbox to be used outside of California, collaborating with the Delaware Valley Regional Planning Commission to develop a case study for using this toolbox for EV infrastructure planning in the Greater Philadelphia region. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage |
| Keywords: | Engineering, Electric vehicle charging, Electric vehicles, Forecasting, Geographic information systems, Location, Regional planning |
| Date: | 2021–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8zs6d52j&r= |
| By: | Daniela Kletzan-Slamanig (WIFO); Angela Köppl |
| Abstract: | A comprehensive restructuring of economies and a massive increase of investments in climate-friendly technologies, infrastructures, and R&D is needed for reaching the Paris targets. The EU has launched a process for greening the financial sector emphasising the need for new instruments and financial market regulation for aligning investments to sustainability. This chapter summarises research on two topics: firstly, what are the main political strategies, especially at EU level, to support green finance, and secondly, which are the key supporting factors, barriers and actors for an upscaling of green investments? To assess the relevance of green finance in the financial market and climate policy (with focus on Austria) an expert survey was conducted. It delivers insights on promising policies and strategies for fostering the growth of green finance. Conclusions can be drawn on instruments (like carbon pricing) that should be integrated in post-COVID-19 stimulus packages to ensure a Paris-aligned recovery. |
| Keywords: | Green finance, EU sustainable finance strategy, survey data, low-carbon transition, green recovery |
| Date: | 2021–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2021:i:640&r= |
| By: | Mr. Kangni R Kpodar; Boya Liu |
| Abstract: | This paper investigates the response of consumer price inflation to changes in domestic fuel prices, looking at the different categories of the overall consumer price index (CPI). We then combine household survey data with the CPI components to construct a CPI index for the poorest and richest income quintiles with the view to assess the distributional impact of the pass-through. To undertake this analysis, the paper provides an update to the Global Monthly Retail Fuel Price Database, expanding the product coverage to premium and regular fuels, the time dimension to December 2020, and the sample to 190 countries. Three key findings stand out. First, the response of inflation to gasoline price shocks is smaller, but more persistent and broad-based in developing economies than in advanced economies. Second, we show that past studies using crude oil prices instead of retail fuel prices to estimate the pass-through to inflation significantly underestimate it. Third, while the purchasing power of all households declines as fuel prices increase, the distributional impact is progressive. But the progressivity phases out within 6 months after the shock in advanced economies, whereas it persists beyond a year in developing countries. |
| Keywords: | Fuel prices, inflation, local projections, household welfare |
| Date: | 2021–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/271&r= |
| By: | Florian Bourgey (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique, Bloomberg L.P. Quantitative Finance Research - Bloomberg L.P.); Emmanuel Gobet (CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique); Ying Jiao (ISFA - Institut de Science Financière et d'Assurances) |
| Abstract: | This paper investigates the impact of transition risk on a firm's low-carbon production. As the world is facing global climate changes, the Intergovernmental Panel on Climate Change (IPCC) has set the idealized carbon-neutral scenario around 2050. In the meantime, many carbon reduction scenarios, known as Shared Socioeconomic Pathways (SSPs) have been proposed in the literature for different production sectors in more comprehensive socioeconomic context. In this paper, we consider, on the one hand, a firm that aims to optimize its emission level under the double objectives of maximizing its production profit and respecting the emission mitigation scenarios. Solving the penalized optimization problem provides the optimal emission according to a given SSP benchmark. On the other hand, such transitions affect the firm's credit risk. We model the default time by using the structural default approach. We are particularly concerned with how the adopted strategies by following different SSPs scenarios may influence the firm's default probability. |
| Keywords: | Climate risk,transition risk,credit risk,Shared Socioeconomic Pathways,carbon emission reduction,optimal production profit |
| Date: | 2021–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03458299&r= |
| By: | Kai A. Konrad; Kjell Erik Lommerud |
| Abstract: | A central issue that is discussed in climate policy is the fear of owners of stocks of fossil hydrocarbon deposits that high CO2 taxes and bans on the combustion use of hydrocarbons will turn their stocks into stranded assets. They might react by extracting and selling their reserves today: a rush to burn results. We show how the stranded-asset problem could be avoided or strongly moderated. We analyze a simple intertemporal equilibrium with a given stock of fossil hydrocarbons. In this framework the following properties hold: For a climate-neutral solution to the rush-to-burn problem it is important to maintain existing and generate new markets for climate-neutral products from fossil hydrocarbons in the future. We give examples for such products. Subsidies for such products (or for their innovation) reduce the rush-to-burn problem. In contrast, the creation of substitutes for fossil hydrocarbon-based climate-neutral products, or subsidies for such products reduce the market for products made from fossil hydrocarbons. This can aggravate the stranded-assets problem and thus can have a climate-damaging effect. |
| Keywords: | green paradox, rush to burn, catalytic pyrolysis, hydrocarbons, plastics |
| JEL: | Q54 Q35 |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:mpi:wpaper:tax-mpg-rps-2021-09&r= |
| By: | Hervé Bercegol (SPEC - UMR3680 - Service de physique de l'état condensé - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Henri Benisty (IOGS - Institut d'Optique Graduate School) |
| Abstract: | Global historical series spanning the last two centuries recently became available for primary energy consumption (PEC) and gross domestic product (GDP). Based on a thorough analysis of the data, we propose a new, simple macroeconomic model whereby physical power is fueling economic power. From 1820 to 1920, the linearity between global PEC and world GDP justifies basic equations where, importantly, PEC incorporates unskilled human labor that consumes and converts energy from food. In a consistent model, both physical capital and human capital are fed by PEC and represent a form of stored energy. In the following century, from 1920 to 2016, GDP grows quicker than PEC. Periods of quasi-linearity of the two variables are separated by distinct jumps, which can be interpreted as radical technology shifts. The GDP to PEC ratio accumulates game-changing innovation, at an average growth rate proportional to PEC. These results seed alternative strategies for modeling and for political management of the climate crisis and the energy transition. |
| Keywords: | Energy-GDP nexus,global economy,innovation,historical series,technological revolutions,Energy transition |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:cea-03451983&r= |
| By: | Erik Heilmann (University of Kassel) |
| Abstract: | The energy transition brings various challenges of technical, economic and organizational nature. One major topic, especially in zonal electricity systems, is the organization of future congestion management. Local flexibility market (LFM) is an often discussed concept of market-based congestion management. Similar to the whole energy system, the market transparency of LFMs can influence the individual bidders' behavior. In this context, the predictability of the network status and an LFM's outcome, depending on a given transparency policy, is investigated in this paper. For this, forecast models based on artificial neural networks (ANN) are implemented on synthetical network and LFM data. Three defined transparency policies determine the amount of input data used for the models. The results suggest that the transparency policy can influence the predictability of network status and LFM outcome, but appropriate forecasts are generally feasible. Therefore, the transparency policy should not conceal information but provide a level playing field for all parties involved. The provision of semi-disaggregated data on the network area level can be suitable for bidders' decision making and reduces transaction costs. |
| Keywords: | Local flexibility markets, Market transparency, Transparency policy, Artificial neural network forecast |
| JEL: | L94 L98 Q41 Q47 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202141&r= |
| By: | Liebich, Lena; Nöh, Lukas; Rutkowski, Felix Joachim; Schwarz, Milena |
| Abstract: | In light of its recently completed strategy review, the ECB has presented a climate action plan, which schedules the consideration of climate criteria within the corporate sector purchase program (CSPP). We study the potential role of the ECB in supporting the transition to a low-carbon economy by decarbonizing the CSPP. We demonstrate that the carbon intensity of CSPP purchases is basically determined by three factors: First, by the CSPP-eligibility criteria as these tend to exclude bonds from low-emission sectors. Second, by the underlying structure of the bond market as this tends to be skewed towards carbon-intensive sectors. Third, among the eligible bonds, the ECB tends to select those from relatively emission-intensive sectors. Consequently, to decarbonize the CSPP, the ECB can theoretically act along these three lines. That is: Adjust the CSPP-eligibility criteria to expand the range of eligible low-carbon assets. Revise the principle of market neutrality to tilt the CSPP portfolio towards low-carbon companies. Or purchase so far neglected low-carbon bonds within the current eligibility and market neutrality framework. We analyze chances and discuss risks with regard to all three options. As we find that all approaches to decarbonize the CSPP have either very limited effects on the carbon intensity of the CSPP portfolio or are associated with significant theoretical and practical concerns, we conclude that the contributions to the success of an active green monetary policy that goes beyond the principle of market neutrality are not guaranteed, while at the same time risks arise for a monetary policy oriented towards price level stability. In contrast, by linking the CSPP to climate-related disclosures, the ECB can contribute to increased transparency and improved risk management and has an important and potentially climate-effective lever in hand that is independent of revising the principle of market neutrality. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:svrwwp:052021&r= |
| By: | Lionel Fontagné; Erica Perego; Gianluca Santoni |
| Abstract: | What will the global economy look like in a generation? The answer depends on the multiple forces driving long-term growth (demography, education, diffusion of technical progress, energy costs, investment and saving behaviour, international capital mobility) and requires a comprehensive framework to conceptualise them. We re-estimate the three-factor (capital, energy, labour) MAcro-econometric model of the Global Economy (MaGE), initially developed by Fouré et al. (2013), with a database covering 170 countries using state-of-the-art methods. We thus establish the long-term structural relationships that drive the dynamics of the World economy. The model projections to 2050 illustrate the expected changes in the World economy and their driving forces. In light of the projected volume of energy consumption, making these projections compatible with climate imperatives calls for increased technology sharing at the international level in order to decouple economic growth from energy use. |
| Keywords: | Growth Models;Long-term Growth;Energy Use;Total Factor Productivity;Energy Efficiency |
| JEL: | O E01 F01 F64 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:cii:cepidt:2021-12&r= |
| By: | Fouarge, Didier (RS: GSBE Theme Learning and Work, RS: GSBE Theme Data-Driven Decision-Making, ROA / Labour market and training); Steens, Sanne (RS: GSBE other - not theme-related research, ROA / Labour market and training) |
| Abstract: | Due to digitalization and decarbonization, the jobs and the skills that are demanded for these jobs change rapidly over time. This leads to challenges related to reskilling and strategic workforce recruitment choices. In response to the transformation in the energy market, energy technology companies are streamlining and innovating their portfolio and products. This leads to significantly changing skill demands. |
| Date: | 2021–11–19 |
| URL: | http://d.repec.org/n?u=RePEc:unm:umarep:2021008&r= |
| By: | Mark Budolfson (Rutgers University [Newark] - Rutgers - Rutgers University System); Francis Dennig (Yale-NUS College); Frank Errickson (Princeton's Woodrow Wilson School of Public and International Affairs - Princeton University); Simon Feindt (MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research); Maddalena Ferranna (Harvard School of Public Health); Marc Fleurbaey (PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS Paris - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); David Klenert (JRC - European Commission - Joint Research Centre [Seville]); Ulrike Kornek (Kiel University); Kevin Kuruc (OU - University of Oklahoma); Aurélie Méjean (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Wei Peng (Penn State - Pennsylvania State University - Penn State System); Noah Scovronick (Emory University [Atlanta, GA]); Dean Spears (University of Texas at Austin [Austin]); Fabian Wagner (IIASA - International Institute for Applied Systems Analysis [Laxenburg]); 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, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We find that if all countries adopt the necessary uniform global carbon tax and then return the revenues to their citizens on an equal per capita basis, it will be possible to meet a 2 °C target while also increasing wellbeing, reducing inequality and alleviating poverty. These results indicate that it is possible for a society to implement strong climate action without compromising goals for equity and development. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03462781&r= |
| By: | Tom Carlowitz |
| Abstract: | Billions of dollars are spent each year on electrification infrastructure projects in the hope to benefit the 770 million people who still lack access to electricity. However, the evidence to date on the effects of such projects is mixed. In this paper, I study the effect of rural electrification on firm creation in Ghana by focusing on the effect on female-owned microenterprises. I combine firm census data covering over 638,000 firms (including informal and rural establishments) with electricity access and geo-spatial data. I address the endogeneity of the grid expansion using an instrumental variable approach. The instrument is the distance to a hypothetical grid connecting historical regional capitals, border towns, and main hydropower plants. I find that a 10% increase in district-level electrification leads to the creation of 152 female-owned firms, which corresponds to a 37% increase. I show that this effect is largely driven by two channels: i) a reduction in home production activities by women and ii) a lowering of required startup capital for microenterprises. The findings of this paper are consistent with previous literature, showing large effects of electrification particularly for women. |
| Keywords: | rural electrification; infrastructure; microenterprises; firms; Ghana |
| JEL: | L26 O13 O14 O18 Q41 R11 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2021-10&r= |
| By: | Shawkat Hammoudeh (Drexel University); Walid Mensi (Sultan Qaboos University); Jin Seo Cho (Yonsei University) |
| Abstract: | This paper examines the quantile relationships between the Saudi Riyal (SAR) exchange rate pressure, Credit default swap (CDS) spreads, total reserve assets, and oil prices. Using the available monthly data ranging from 2008 to 2018 and employing the error correction model, the results show a negative and significant relationship between the long-run coefficient of the SAR exchange rate pressure and the long run coefficients of both the CDS and the oil price. However, the long run coefficient of the foreign reserves is statistically insignificant, thus indicating that the exchange rate pressure, CDS spread and oil price variables are cointegrated. As for the short-run coefficients, we find that the lag SAR pressure affects the current pressure. Moreover, the short-run coefficient of the foreign reserves affects negatively the SAR pressure. Moreover, using the quantile ARDL (QARDL) model, we find a significant relationship particularly in the extreme quantiles, regardless of the level or the log level series. Under the long-run coefficients, the positive (negative) relationship characterizes the nexus of the reserves-pressure and the CDS-pressure (oil-pressure) on the SAR. As for the short-run coefficients, we find that an increase in the lag SAR pressures contributes to the current pressure across all quantiles, whereas an increase in the reserves reduces the pressure in the extreme quantiles. These results have important implications for policy makers. |
| Keywords: | Exchange Rate Pressure; CDS Bid-Ask Spreads; Reserve Assets; Oil Prices; Quantile ARDL Model |
| JEL: | G14 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:yon:wpaper:2021rwp-191&r= |
| By: | Heinzmann, Paul; Glöser-Chahoud, Simon; Dahmen, Nicolaus; Langenmayr, Uwe; Schultmann, Frank |
| Abstract: | Die Emissionen des Mobilitätssektors basieren derzeit maßgeblich auf der Nutzung fossiler flüssiger Energieträger . Trotz zunehmender Elektrifizierung, spielen flüssige und gasförmige Kraftstoffe kurz und mittelfristig noch eine bedeutende Rolle und werden voraussichtlich in einigen Bereichen auch in längerfristiger Zukunft benötigt. Um dennoch eine Minderung der THG Emissionen zu erreichen, stehen mehrere Technologien und Verfahrenskonfigurationen zur Erzeugung regenerativer synthetischer Kraftstoffe zur Verfügung. Im Rahmen einer techno ökonomischen Analyse werden potenzielle Herstellungsverfahren identifiziert, sowie deren charakteristische Merkmale zusammengetragen. Für die anschließende technische Analyse wurde eine Prozesssimulation in Aspen Plus ® erstellt, woraus die Bestimmung charakteristischer technischer Kenngrößen erfolgte. Anhand der Simulationsergebnisse wurde anschließend eine ökonomische Bewertung des Verfahrens durchgeführt . Die Wahl fiel auf ein Power to Liquid Verfahren unter Nutzung von CO 2 Emissionen eines Zementwerks. Die Konversion zu Kraftstoffen erfolgt durch eine Fischer Tropsch Synthese und teilweiser Veredelung in einem Hydrocracking Verfahren in die Zielprodukte einer Diesel und einer Benzinfraktion. Im Rahmen dieser Arbeit wird das beschriebene Verfahren für drei Produktionskapazitäten untersucht. Unter den getroffenen Annahmen beträgt die Kohlenstoffeffizienz der gewählten Prozessroute 92%, der Wasserstoffwirkungsgrad 63%, sowie der energetische Wirkungsgrad 37%. Die spezifischen Herstellungskosten liegen für den Basisfall bei 3,26 €, für eine Anlage geringerer Produktionskapazität bei 3,51 € und für eine Anlage höherer Kapazität bei 3,11 € pro Liter Kraftstoff. Die Kosten der elektrischen Energie und der Investitionsbedarf der PEM Elektrolyse sind dabei die maßgeblichen Kostenfaktoren. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:63&r= |
| By: | Matthew Sharp |
| Abstract: | The effects of environmental regulation on labour demand has received significant attention, though research has almost entirely been conducted in developed countries. The aggressive development strategy pursued by Vietnam, through reforms such as the Doi Moi, has been associated with poor environmental performance. Since 1994, Vietnam has pursued detailed Environmental Plans aimed at reducing emissions and pollution by firms and has introduced numerous laws which have implications for all Vietnamese businesses. This dissertation examines changes in employment resulting from treatment of environmental factors as mandated by regulation among micro, small, and medium manufacturing enterprises in Vietnam, using unbalanced firm-level panel data from the 2011, 2013, and 2015 rounds of the UNU-Wider Vietnam SME survey. Ordinary Least Squares (OLS), two-stage-least squares (2SLS), fixed-effects, and fixed-effects-2SLS models are estimated to recover effects of treatment of environmental factors on labour demand. OLS and fixed-effect models show small positive effects. Once instrumental variables and fixed effects are used to control for endogeneity, results still indicate that there are no large negative effects on employment from treatment of environmental factors. These results are consistent with existing evidence from developed countries that environmental regulation does not lead to large reductions in employment by regulated firms. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2021-02&r= |
| By: | Felipe Gonzalez (GeePs - Laboratoire Génie électrique et électronique de Paris - CentraleSupélec - SU - Sorbonne Université - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Marc Petit (GeePs - Laboratoire Génie électrique et électronique de Paris - CentraleSupélec - SU - Sorbonne Université - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Yannick Perez (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03420072&r= |
| By: | Pedro Naso; Tania Theoduloz; Nicholas Tyack; Dambala Gelo; Mare Sarr; Timothy Swanson |
| Abstract: | We run an experiment in five countries with 7,132 participants to study how information on the contribution of others influences contributions to climate change mitigation. Participants receive artificially generated information on the average contribution of others, on the ranking of contributions and endowments of others, and on others’ nationalities. We show that (i) participants from developed countries free ride on the average of others, whereas participants from developing countries follow the lead of the majority; (ii) information on the ranking of contributions increases participants’ contributions as compared to information on the average of others; and (iii) participants dislike to be in the first and last position of the contribution ranking. Our results suggest that a country’s contribution to climate change mitigation can be promoted by using information on the contributions of other countries. |
| Date: | 2021–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:gii:ciesrp:cies_rp_72&r= |
| By: | Treude, Sibylle |
| Abstract: | The article deals with the influence of the European Commission in the field of economic policy in the European Union (EU) since the beginning of the 21st century. Starting from reflections on the guiding idea of supranationality the question arises if and how the Commission has increased its influence on the economic policies of the EU Member States. The role of the EU's long-term strategies like the European Green Deal are analysed by applying the approach of Evolutionary Institutionalism. Has the European Commission induced institutional change and improved its own institutional fitness? Which role does the European Green Deal play in European economic policy? |
| Keywords: | European integration,EU,European economic policy,European Green Deal,European integration theory/approaches,Evolutionary Institutionalism |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hkowis:352022&r= |
| By: | Hendrik Hakenes (Institute for Financial Economics and Statistics, University of Bonn, ECONtribute, and CEPR); Eva Schliephake (Universidade Catolica Portuguesa, Catolica Lisbon School of Business & Economics, Portugal) |
| Abstract: | To reduce a negative externality, socially responsible households can invest responsibly (SRI), consume responsibly (SRC), or do both. Which is better? In a closed microeconomic model with intertwined product and capital markets, we analyze how responsible households should use SRI and SRC to maximize their impact. Both strategies reduce the externality as long as investors are risk-averse and the products have no perfect substitutes. Responsible households gain the highest impact when using SRC in equal proportion to SRI. A mere focus on SRC is never efficient. SRI plays a role in any green strategy. The financial performance of green investments is determined by the responsible households' mix between SRI and SRC. |
| Keywords: | Socially responsible investment (SRI), ethical investment, socially responsible consumption (SRC), sustainable investment, sustainable consumption, green investment, divestment, ESG, SPI |
| JEL: | D16 G30 G23 D62 D64 H44 M14 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:134&r= |
| By: | Takeshima, Hiroyuki; Yamauchi, Futoshi; Bawa, Dauda; Kamaldeen, Salaudeen O.; Edeh, Hyacinth O.; Hernandez, Manuel A. |
| Abstract: | Modern cooling technologies that utilize renewable energy sources have been increasingly recognized as a promising tool to address a multitude of challenges emerging in progressively complex food systems in developing countries. When provided as cold-storages inside horticulture markets, cooling technologies can potentially contribute to improved quality of products and strengthened vertical linkages. Knowledge gaps about the actual impacts of these technologies in developing countries remain, especially in Africa south of Sahara (SSA). This study partly fills this knowledge gap by providing evidence from the evaluation of recent interventions in northeast Nigeria in which 7 small solar-powered cold-storages were installed across 7 horticulture markets. Combinations of difference-in-difference and variants of propensity-score-based methods suggest that using cold-storages significantly increased horticulture sales volumes and revenues of market-agents. Back-of-the-envelope calculations indicate that increased net revenues for market-agents may be sufficiently large to recoup the investments and operating costs of cold-storages within a reasonable time frame. Using cold-storage also reduced the share of food loss and lengthened the products' shelf-life, while raised prices received by both market-agents and farmers, which were associated with improved product quality, expanded value-adding activities by market-agents, and increased use of advance payments. We find no evidence of negative spillover effects inside horticulture markets. Finally, additional food-science experiments confirm that cold-storages preserve original physical and nutritional qualities of key horticultural products several days longer than products stored under ambient temperature. |
| Keywords: | NIGERIA; WEST AFRICA; AFRICA SOUTH OF SAHARA; AFRICA; food systems; transformation; markets; solar energy; cold storage; sustainability; horticulture; food quality; food losses; market-agents |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2047&r= |
| By: | Raouf Boucekkine (Rennes School of Business); Giorgio Fabbri (Univ. Grenoble Alpes, CNRS, INRA, Grenoble INP, GAEL, 38000 Grenoble, France.); Salvatore Federico (Università degli Studi di Genova, Dipartimento di Economia.); Fausto Gozzi (Dipartimento di Economia e Finanza, LUISS Guido Carli, Roma.) |
| Abstract: | This work targets the class of spatiotemporal problems with free riding under natural (pollution, epidemics...etc) diffusion and spatial externalities. Such a class brings to study a family of differential games in continuous time and space. In the fundamental pollution free riding problem we develop a strategy to solve completely the associated game contributing to the associated debate on environmental federalism. We depart from the preexisting literature in several respects. First, instead of assuming ad hoc pollution diffusion schemes across space, we consider a realistic spatiotemporal law of motion for pollution (diffusion and advection). Second, we tackle spatiotemporal non-cooperative (and cooperative) differential games instead of static games in the related literature. Precisely, we consider a circle partitioned into several states where a local authority decides autonomously about its investment, production and depollution strategies over time knowing that investment/production generates pollution, and pollution is transboundary. The time horizon is infinite. Third, we allow for a rich set of geographic heterogeneities across states while the literature assumes identical states. We solve analytically the induced non-cooperative differential game under decentralization and fully characterize the resulting long-term spatial distributions. In particular, we prove that there exist a Perfect Markov Equilibrium, unique among the class of the a‑ne feedbacks. We further provide with full exploration of the free riding problem, reflected in the so-called border effects. Finally, we explore how geographic discrepancies (the most elementary being the asymmetry of players) affect the shape of the border effects. We check in particular that our model is consistent with the set of stylized facts put forward by the related empirical literature. |
| Keywords: | Spatial externalities, spatial diffusion, differential games in continuous time and space, infinite dimensional optimal control problems, environmental federalism |
| JEL: | Q53 R12 O13 C72 C61 O44 |
| Date: | 2021–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2021028&r= |
| By: | Boulfani, Fériel; Gendre, Xavier; Ruiz-Gazen, Anne; Salvignol, Martina |
| Abstract: | The sizing of aircraft electrical generators mainly depends on the electrical loads installed in the aircraft. Currently, the generator capacity is estimated by summing the critical loads, but this method tends to overestimate the genera-tor capacity. A new method to challenge this approach is to use the electrical consumption recorded during flights and study the distribution of operational ratios between the actual consumption and the theoretical maximum consump-tion then size the future aircraft generators by applying a ratio to the theoretical value. This paper focuses on the application of extreme value theory on these operational ratios to estimate the maximal capacity utilization of a generator. A real data example is provided to illustrate the approach and estimate extreme quantiles and the right endpoint of the distribution of the ratios together with their approximate confidence interval in the nominal configuration. In all situ-ations the right endpoint is proven to be finite and does not depend on the use procedures. This approach shows that ELA overestimates the maximal perma-nent consumption by 20% with error level of 10−3 in the nominal configuration. |
| Keywords: | Electrical load analysis; Aeronautic electrical system; Generalized Pareto distribution; Quantile estimation; Endpoint estimation; Diagnostics for threshold selection |
| Date: | 2021–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:126233&r= |
| By: | Nakamura, Ryota; Albanese, Andrea; Coombes, Emma; Suhrcke, Marc |
| Abstract: | This study investigates the impact of economic incentives on travel-related physical activity, leveraging the London Congestion Charge’s disincentivising of sedentary travel modes via increasing the cost of private car use within Central London. The scheme imposes charges on most types of cars entering, exiting and operating within the Central London area, while individuals living inside the charging zone are eligible for a 90% reduction in congestion charges. Geographical location information provides the full-digit postcode data necessary to precisely identify the eligibility for the discount of participants in the London Travel Demand Survey for the period 2005–2011. Using a boundary regression-discontinuity design reveals a statistically significant but small impact on active commuting (i.e. cycling and walking) around the border of the charging zone. The effect is larger for lower-income households and car owners. The findings are robust against multiple specifications and validation tests. |
| Keywords: | economic incentive, health behaviour, London Congestion Charge, geographical information system, regression-discontinuity |
| JEL: | D04 I12 R48 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:hit:hiasdp:hias-e-115&r= |
| By: | Mark Budolfson (Department of Philosophy, Rutgers University); Francis Dennig (Yale-NUS College); Frank Errickson (Princeton's Woodrow Wilson School of Public and International Affairs - Princeton University); Simon Feindt (MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research); Maddalena Ferranna (Harvard School of Public Health); 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); David Klenert (JRC - European Commission - Joint Research Centre [Seville]); Ulrike Kornek (Kiel University); Kevin Kuruc (OU - University of Oklahoma); Aurélie Méjean (CNRS - Centre National de la Recherche Scientifique); Wei Peng (Penn State - Pennsylvania State University - Penn State System); Noah Scovronick (Emory University [Atlanta, GA]); Dean Spears (University of Texas at Austin [Austin]); Fabian Wagner (IIASA - International Institute for Applied Systems Analysis [Laxenburg]); 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) |
| Date: | 2021–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:pseptp:halshs-03462773&r= |