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on Energy Economics |
| By: | Tim T. Pedersen; Mikael Skou Andersen; Marta Victoria; Gorm B. Andresen |
| Abstract: | The transition of Europe's energy supply towards carbon neutrality should be efficient, fair, and fast. In principle, the efficiency of the transition is ensured by the European Emissions Trading System (ETS), creating a common emissions market. Fairness is aimed for with the Effort Sharing Regulation, calibrated for the economic capacity of member states. These two pieces of legislation are aiming for a trade-off between efficiency and fairness. A Monte Carlo simulation with 30.000 samples of national reduction target configurations has been performed using an advanced energy system optimization model of electricity supply as of 2030. Results reveal a group of countries where emissions reductions beyond the national targets, in most scenarios, are economically favorable. Contrarily, for some countries large abatement costs are unavoidable. Compared to the most cost-effective CO2 allocation, accepting a moderate increase in cost enables alternative CO2 emissions allocations that incorporate alternative justice-based distribution criteria. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.07247&r= |
| By: | Pejman Bahramian (Department of Economics, Queen's University) |
| Abstract: | The Province of Ontario has had a very aggressive program of introducing wind electricity generation technologies into its generation supply mix. This program, combined with the rigid baseload production by nuclear and hydro plants, has created a surplus baseload electricity supply for 20 years. Pumped hydro storage (PHS) has been suggested as an economically viable technology for storing energy produced by non-dispatchable wind energy sources. In this vein, an analytical framework has been developed to explore the feasibility of the PHS facility to manage the surplus supply of electricity and compare its cost performance with the alternative gas power plants. The analysis is undertaken for a situation where the PHS plant uses surplus energy for the first 20 years of its operation, and additional wind energy would be provided for the second 20 years of the project’s life. It is found that given the level of capital costs of building PHS in Ontario, the PHS expansion is not economically cost-effective to utilize the projected off-peak surpluses. The economic analysis also illustrates that in the context of Ontario, the integration of PHS with wind power generation will have a negative impact on the Canadian economy in all circumstances. This loss is borne mainly by the electricity consumers of Ontario. Even considering the cost of CO2 emissions from a world perspective, this investment is not worthwhile. It would be much better socially from the perspective of the world and economically from Canada’s perspective if the surplus baseload electricity from Ontario were given away to the US free of charge. It could then be used to reduce generation by natural gas plants in the USA, hence reducing CO2 emissions globally, without any incremental cost to Canada. |
| Keywords: | economic analysis, pumped hydro storage, wind power, electricity, Ontario |
| JEL: | O55 D61 Q42 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1479&r= |
| By: | Brita Bye; Kevin R. Kaushal; Orvika Rosnes; Karen Turner; Hidemichi Yonezawa (Statistics Norway) |
| Abstract: | Transportation is one of the main contributors to greenhouse gas emissions. Climate regulations on transportation are often a mix of sector-specific regulations and economy-wide measures (such as emission pricing). In this paper we analyse the effects on economic welfare, abatement costs and emissions of such interacting and partly overlapping climate regulations for private transportation. Our focus is on Norway, a nation where high taxation of conventional fossil-fuelled cars has paved the floor for another pillar of climate policies: promotion of electric vehicles (EVs) in private transport. Our contribution to the literature is two-fold. First, we analyse the costs and impacts of the partly overlapping climate regulations in transportation – the cap on domestic non-ETS emissions and the goal of all new cars for private households being EVs – focussing on the outcome in 2030 in Norway. Second, we respond to an important gap in the literature through a methodological development in economy-wide computable general equilibrium (CGE) approaches for climate policy by introducing EV technologies as an explicit transport equipment choice for private households. We find that, for the case of Norway, combining a specific EV target with policy to cap emissions through a uniform carbon price triples the welfare costs. |
| Keywords: | Climate policy; carbon pricing; green transport policies; overlapping regulations; modelling electric vehicles; CGE-model |
| JEL: | C68 H23 Q54 Q58 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:972&r= |
| By: | Davide Furceri; Mr. Pragyan Deb; Nour Tawk; Mr. Jonathan David Ostry |
| Abstract: | Lockdowns resulting from the COVID-19 pandemic have reduced overall energy demand but electricity generation from renewable sources has been resilient. While this partly reflects the trend increase in renewables, the empirical analysis presented in this paper highlights that recessions result in a permanent, albeit small, increase in energy efficiency and in the share of renewables in total electricity. These effects are stronger in the case of advanced economies and when complemented with environment and energy policies—both market-based measures such as taxes on pollutants, trading schemes and feed-in-tariffs, as well as non-market measures such as emission and fuel standards and R&D investment and subsidies—to incentivize and hasten the transition towards renewable sources of energy. |
| Keywords: | Covid-19 lockdowns; recession; energy use; energy mix; renewables. |
| Date: | 2021–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/284&r= |
| By: | Xueting Jiang; David I. Stern |
| Abstract: | The 2020 COVID-19 driven recession saw a sharp drop in carbon dioxide emissions as transportation and some other energy uses were curtailed. This was an unusual recession as it was driven by a pandemic. Previous research shows that when GDP declines carbon emissions fall faster relative to GDP than they rise in economic booms. Using monthly US data, we examine each individual recession in the US since 1973 finding that there is an asymmetric response in the 1973-5, 1980, 1990, and 2020 recessions but not in the 1981-2, 2001, or 2008-9 recessions. The former four recessions are associated with negative oil market shocks. In the first three there was a supply shock and in 2020 a demand shock. Changes in oil consumption that are not explained by changes in GDP explain these asymmetries. Furthermore, the asymmetries are due to emissions in the transport and industrial sectors, which are the main consumers of oil. |
| Keywords: | COVID-19, climate change, business cycle |
| JEL: | Q43 Q54 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2021-92&r= |
| By: | KERAMIDAS Kimon (European Commission - JRC); FOSSE Florian (European Commission - JRC); DIAZ VAZQUEZ Ana (European Commission - JRC); DOWLING Paul (European Commission - JRC); GARAFFA Rafael (European Commission - JRC); DESPRÉS Jacques (European Commission - JRC); RUSS Hans Peter (European Commission - JRC); SCHADE Burkhard (European Commission - JRC); SCHMITZ Andreas (European Commission - JRC); SORIA RAMIREZ Antonio (European Commission - JRC); VANDYCK Toon (European Commission - JRC); WEITZEL Matthias (European Commission - JRC); TCHUNG-MING Stephane (European Commission - JRC); DIAZ RINCON Andrea (European Commission - JRC); REY LOS SANTOS Luis (European Commission - JRC); WOJTOWICZ Krzysztof (European Commission - JRC) |
| Abstract: | This edition of the Global Energy and Climate Outlook (GECO 2021) takes stock of recent updates in nationally determined contributions (NDCs) and long-term net zero emission targets (LTS) announced leading up to and during the Conference of the Parties (COP 26) in November 2021. GECO 2021 finds that the NDC and LTS pledges stop global emissions growth over the next decades and lead to declining emissions until 2050. While delivering on these aims results in an increase of global mean temperature of 1.8°C (current policies in excess of 3°C), substantial further actions are needed to limit global warming to the Paris Agreement targets, to well below 2°C and pursue efforts to 1.5°C above preindustrial levels. To achieve this objective, net-zero greenhouse gas emissions has to be reached around the 2070s at the global level. Nevertheless, the announced LTS pledges could be a major step towards filling this gap, since an NDC-only scenario sees average temperature increases of 2.6°C at the end of the century.In this report, we focus on the transition of G20 countries, which accounted for nearly 75% of global Greenhouse Gas (GHG) emissions. For each of them, we assess emissions under three different scenarios: current policies, announced domestic targets (NDC-LTS) and under two 1.5°C-compatible pathways. We analyse decarbonisation drivers and transformation metrics within each scenario, highlighting the policy options to bring emissions in line with ambitious climate targets. |
| Keywords: | Global Energy system, Climate Change, Green House Gas emissions, Nationally determined contributions (NDCs), Long term strategies (LTS), G20 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc126767&r= |
| By: | Pierpaolo Grippa; Mr. Dimitri G Demekas |
| Abstract: | There are demands on central banks and financial regulators to take on new responsibilities for supporting the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. But their powers should not be overestimated. Their diagnostic and policy toolkits are still in their infancy. They cannot (and should not) expand their mandate unilaterally. Taking on these new responsibilities can also have potential pitfalls and unintended consequences. Ultimately, financial regulators cannot deliver a low-carbon economy by themselves and should not risk being caught again in the role of ‘the only game in town.’ |
| Keywords: | Financial stability, financial regulation, climate change, climate mitigation policy, low-carbon economy, energy transition, carbon price, green finance |
| Date: | 2021–12–17 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2021/296&r= |
| By: | Anaya, K. L.; Giulietti, M.; Pollitt, M .G. |
| Abstract: | This paper seeks to shed light on the nature of optimal regulation of the electricity distribution system operator (DSO) over the period to 2025 and beyond, following the implementation of the EU Clean Energy Package and its constituent parts: Electricity Regulation (EU) 2019/943 and Electricity Directive (EU) 2019/944. We conducted two parallel surveys of DSOs and their national regulatory authorities (NRAs) across 39 European countries. This produced 39 responses from DSOs and 12 responses from NRAs covering, respectively, 40% and 78% of customers in those countries. We asked both DSOs and NRAs three sets of questions related to: (1) the definition and regulation of the future system operator function of the DSO; (2) lessons learned from transmission system operator (TSO) regulation that can be translated to the DSO; and (3) the way in which regulators support the capacity of the DSO to operate and coordinate the system. Our findings are consistent with the observation that the move towards a more active role for the DSO remains work in progress for both DSOs and their NRAs, given the fact that the Clean Energy Package has only passed into European Law relatively recently and some Member States are still implementing its provisions. |
| Keywords: | distribution system operator, DSO, Electricity Regulation |
| JEL: | L94 L21 |
| Date: | 2022–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2201&r= |
| By: | Kohn, Eben; Huang, Christopher; Kong, Nathaniel; Hardman, Scott |
| Keywords: | Social and Behavioral Sciences, electric vehicle, plug-in hybrid vehicle, incentive, policy |
| Date: | 2022–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt0tn2p4x6&r= |
| By: | Yu Hu; Miguel Armada; Maria Jesus Sanchez |
| Abstract: | Given the declining cost of battery technology in the last decade, nowadays BESS becomes a more attractive solution in electrical power systems. The objective of this work is to analyze the potential utilization of BESS in the major European electricity markets. A general payoff model for BESS operation is proposed to correctly address the operational flexibility of battery systems. Utilization factors such as potentially profitable utilization time and rate are calculated for common applications including energy arbitrage and frequency support services using real market information. The result shows that under the current empirical estimation of the battery cost and lifetime, BESS is not feasible for energy arbitrage in most of the European electricity markets. However, BESS shows clearly and significantly higher potential in providing frequency support services. The result suggests that, when the frequency containment reserve is remunerable, the potentially profitable utilization of BESS has become already accretive in most of the European countries. For example from January to September 2021, the potentially profitable utilization rate has reached almost 100% for the FCR-N service in the Danish market. Comparing the regional electricity markets in Europe, BESS has shown significant potential in becoming a feasible solution in Central Western Europe and parts of Northern Europe by providing frequency regulation services. Meanwhile, in the British Isles and some other islanded local markets, a remarkable level of scarcity of flexibility has been revealed by the investigation, and the potential of BESS would also be considerably encouraging. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.09816&r= |
| By: | Claudia Kettner; Daniela Kletzan-Slamanig (WIFO) |
| Abstract: | Emission trading has been the key instrument in the EU's climate policy since its introduction in 2005. According to economic literature, emissions trading should ensure the achievement of a given reduction target at the lowest possible costs, by equalising marginal abatement costs of the installations covered. According to previous studies, however, only a limited number of companies have engaged in trading pointing at a limited economic efficiency of the scheme. This paper contributes to the growing body of empirical literature on allowance transactions by providing an analysis for Austria. For this purpose, two approaches are combined – a quantitative analysis of data on allowance transactions from the EUTL and a survey among Austrian firms in the EU ETS on their trading behaviour, motivations, and strategies. Our results show that allowance transactions have increased over time and that Austrian companies in the EU ETS tend to mainly acquire allowances in the market. The majority of Austrian companies reported compliance as the main motive for purchasing allowances. However, they stated that the time horizon of buying allowances for compliance purposes has been rather short so far, but some Austrian ETS participants intend to emphasise earlier purchases and consider a longer period in their purchasing strategy. Moreover, our analysis shows that it is a limited number of large companies (trading companies and large energy suppliers) that is very active in the market. Market actors have gotten accustomed to this new market for emissions over the past 16 years which is illustrated by increasing quantities and volumes traded. Nevertheless, for Austrian companies there is some potential for adapting their trading strategies in order to incorporate the future challenges, primarily for those companies not used to trading on international energy or resource markets. |
| Keywords: | EU Emission Trading Scheme, Data analysis, Survey, Austria, Trading behaviour |
| Date: | 2022–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2022:i:641&r= |
| By: | Salwa Aljabri; Mala Raghavan; Joaquin Vespignan |
| Abstract: | This paper studies the impact of oil price shocks on fiscal policy and real GDP in Oman using new unexplored data. We find that an oil price shock explains around 22% and 46% of the variation in the government revenue and GDP, respectively. Decomposing the government revenue and GDP further into petroleum and non-petroleum related components, we find that an oil price shock explains around 26% of the variation in petroleum revenue and 90% of the petroleum-GDP. Though petroleum and non-petroleum GDP respond positively to oil price shocks, government expenditure is not affected by oil prices but is affected by government revenue. The results suggest that the Omani government uses its reserve fund and local and international debt to smooth and reduce the impact of oil price fluctuations. |
| Keywords: | oil price shocks, fiscal policy, GDP, SVAR |
| JEL: | C32 E17 E62 N15 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2021-87&r= |
| By: | Mikula, Stepan (Masaryk University); Pytlikova, Mariola (CERGE-EI) |
| Abstract: | This paper examines the causal effects of air pollution on migration by exploiting a natural experiment in which desulfurization technologies were rapidly implemented in coal-burning power plants in the Czech Republic in the 1990s. These technologies substantially decreased air pollution levels without per se affecting economic activity. The results based on a difference-in-differences estimator imply that improvements in air quality reduced emigration from previously heavily polluted municipalities by 24%. We find that the effect of air pollution on emigration tended to be larger in municipalities with weaker social capital and fewer man-made amenities. Thus, our results imply that strengthening social capital and investing in better facilities and public services could partially mitigate depopulation responses to air pollution. Finally, we look at heterogeneous migratory responses to air pollution by education and age and find some evidence that the more educated tend to be more sensitive to air pollution in their settlement behavior. |
| Keywords: | natural experiment, migration, air pollution |
| JEL: | Q53 J61 O15 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14863&r= |
| By: | Hildegart Ahumada (UTDT); Magdalena Cornejo (UTDT/CONICET) |
| Abstract: | We evaluate the effect of the Amazon deforestation on global climate variables: surface temperature, carbon dioxide and methane concentrations over the last fifty years. Our results show the Amazon deforestation effect on carbon dioxide concentration in the atmosphere since 1990. No similar effect is found for methane concentrations. |
| Keywords: | Climate change, deforestation, Amazon, gas emission |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:94&r= |
| By: | Leonardo Rydin Gorj\~ao; Dirk Witthaut; Pedro G. Lind; Wided Medjroubi |
| Abstract: | The European Power Exchange has introduced day-ahead auctions and continuous trading spot markets to facilitate the insertion of renewable electricity. These markets are designed to balance excess or lack of power in short time periods, which leads to a large stochastic variability of the electricity prices. Furthermore, the different markets show different stochastic memory in their electricity price time series, which seem to be the cause for the large volatility. In particular, we show the antithetical temporal correlation in the intraday 15 minutes spot markets in comparison to the day-ahead hourly market. We contrast the results from Detrended Fluctuation Analysis (DFA) to a new method based on the Kramers--Moyal equation in scale. For very short term ($ 0.5$) except for the intraday 15 minute market, which shows strong negative correlations ($H |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.03513&r= |
| By: | Brown, David P. (University of Alberta, Department of Economics) |
| Abstract: | There is growing interest in the adoption of residential battery storage because of its ability to provide bill savings, capture excess solar energy, and provide resiliency value. The resiliency benefits have become increasingly salient in light of recent large-scale power outages. However, these benefits may not accrue to all communities. We explore the presence of disparities in residential battery adoption and the allocation of subsidies under California's Self-Generation Incentive Program (SGIP) by measures of income, race and ethnicity, and a vulnerability index that captures environmental justice (EJ) concerns. We present evidence that battery adoption and subsidy allocations are concentrated in communities that have higher household income and lower EJ concerns. Regression analyses demonstrate that there are disparities in battery adoption rates by household income and race/ethnicity demographic variables, after controlling for important time-varying and regional factors. These findings persist despite the fact that the SGIP has specific funds targeting lower income households and communities, as well as funding targeting wildfi re- and outage-vulnerable households. We demonstrate that these findings are partially, but not fully, driven by SGIP funding eligibility criteria that correlate with communities that have higher income, lower EJ concerns, and a lower percentage of residents of color. |
| Keywords: | Battery Storage; Resiliency; Distributed Energy Resources; Environmental and Energy Justice |
| JEL: | H23 I30 L94 Q40 Q54 |
| Date: | 2021–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2021_013&r= |
| By: | Debnath, R.; Bardhan, R.; Mohaddes, K.; Shah, D. U.; Ramage, M. H.; Alvarez, R. M. |
| Abstract: | There is a growing consensus among policymakers that we need a human-centric low-carbon transition. There are few studies on how to do it effectively, especially in the context of emissions reduction in the building sector. It is critical to investigate public sentiment and attitudes towards this aspect of climate action, as the building and construction sector accounts for 40% of global carbon emissions. Our methodology involves a multi-method approach, using a data-driven exploration of public sentiment using 256,717 tweets containing #emission and #building between 2009 - 2021. Using graph theory-led metrics, a network topology-based investigation of hashtag co-occurrences was used to extract highly influential hashtags. Our results show that public sentiment is reactive to global climate policy events. Between 2009-2012, #greenbuilding, #emissions were highly influential, shaping the public discourse towards climate action. In 2013-2016, #lowcarbon, #construction and #energyefficiency had high centrality scores, which were replaced by hashtags like #climatetec, #netzero, #climateaction, #circulareconomy, and #masstimber, #climatejustice in 2017-2021. Results suggest that the current building emission reduction context emphasises the social and environmental justice dimensions, which is pivotal to an effective people-centric policymaking. |
| Keywords: | Emission, climate change, building, computational social science, people-centric transition, Twitter |
| JEL: | C63 Q54 |
| Date: | 2022–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2202&r= |
| By: | Phoebe Koundouri; Nicolaos Theodossiou; Charalampos Stavridis; Stathis Devves; Angelos Plataniotis |
| Abstract: | The European Green Deal (EGD) was published in December 2019 with the ambition of being Europe's new growth strategy, making it climate neutral by 2050, and ensuring its citizens a sustainable, prosperous, and inclusive future. The energy sector is central to this ambition, as the European Commission's objectives are, among others, to increase the efficiency of energy production by establishing a fully integrated, interconnected, and digitalized EU energy market. The EGD was the starting point for the publication of a large number of Policy and Strategy documents for achieving Sustainability in Europe. One of the first attempts to systematically correlate the policy areas of the European Green Deal with the 17 Sustainable Development Goals (SDGs) was made in the first report of the UN SDSN's Senior Working Group for the Joint Implementation of the SDGs and the EGD, which was published in February 2021, where the EGD framework was linked to each of the 17 SDGs using textual analysis. Building on this methodology, in this chapter we extend the manual linkage of policy texts to SDGs, by using Natural Language Processing and Machine Learning techniques to automate it, focusing on Energy-related documents derived by the EGD. |
| Keywords: | European Green Deal, Policies, Sustainable Development Goals, Deep Learning, Natural Language Processing, Semantics. |
| Date: | 2022–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2202&r= |
| By: | Kuosmanen, Natalia; Seppälä, Timo; Ylhäinen, Ilkka |
| Abstract: | Abstract The environmental benefits and harms of information and communication technology (ICT) have been widely discussed in Finland since 2019. The climate impact of information and communication technology on the environment consists of three channels: procurement, the ICT sector’s own carbon footprint, and the impact on other sectors of the economy (incl. public sector). Indeed, focusing solely on one sector’s own emissions often leads to misleading conclusions about the industry’s carbon footprint. This study examines the evolution of greenhouse gas emissions in the ICT sector and its supply chains in 2008–2019. In addition, the study examines the countries from which greenhouse gas emissions in the ICT sector and its supply chain originate. |
| Keywords: | Information economy sector, Supply chain, Greenhouse gas emissions, Carbon neutrality |
| JEL: | L8 L82 L86 L94 |
| Date: | 2022–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:122&r= |
| By: | Kuosmanen, Natalia; Seppälä, Timo; Ylhäinen, Ilkka |
| Abstract: | Abstract The environmental benefits and harms of information and communication technology (ICT) have been widely discussed in Finland since 2019. The climate impact of information and communication technology on the environment consists of three channels: procurement, the ICT sector’s own carbon footprint, and the impact on other sectors of the economy (incl. public sector). Indeed, focusing solely on one sector’s own emissions often leads to misleading conclusions about the industry’s carbon footprint. This study examines the evolution of greenhouse gas emissions in the ICT sector and its supply chains in 2008–2019. In addition, the study examines the countries from which greenhouse gas emissions in the ICT sector and its supply chain originate. |
| Keywords: | Information economy sector, Supply chain, Greenhouse gas emissions, Carbon neutrality |
| JEL: | L8 L82 L86 L94 |
| Date: | 2022–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:121&r= |
| By: | Pamela E. Ofori (University of Insubria, Varese, Italy); Daryna Grechyna (University of Granada, Spain) |
| Abstract: | Despite the established link between oil rent fluctuations and remittances received, its plausible joint effect on economic growth in Sub-Saharan Africa (SSA) remains unexplored. To fill this gap, first, we determine whether natural resource rent (composed of oil rent, forest rent and natural gas rent) reduces economic growth in SSA. Second, we examine whether positive macroeconomic signals such as remittances mitigate the negative effect of oil rents on economic growth in a sample of 43 SSA countries spanning 1990-2017. We employ the pooled ordinary least squares, fixed-effects and random-effects, and generalized method of moments. The resulting empirical evidence established are; (1) there is a positive impact of forest rent on economic growth whilst oil rent and natural gas rent have a negative impact on economic growth (2) there is a positive marginal and net effect on economic growth from the interaction between remittances and oil rent. Also, the unconditional effect of remittances on growth is positive. We further perform a threshold analysis to establish a critical ground that could also influence economic growth positively. This threshold is crucial because below these critical mass remittance inflows mitigate the negative incidence of oil rent on economic growth and above the threshold, negative oil rent on growth is completely nullified. This is relevant for policy implications because policymakers are provided with actionable levels of remittances which are easily attainable in sampled countries |
| Keywords: | Remittances, Natural resource rent, oil rent, Economic growth, Sub-Saharan Africa |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:abh:wpaper:21/056&r= |
| By: | Rim Berahab; Chami Abdelilah; Derj Atar; Hammi Ibtissem; Morazzo Mariano; Naciri Yassine; Zarkik Afaf |
| Abstract: | LAs decarbonization is a long-term process and requires significant investments, specific financial and non- financial measures will need to be implemented, both in the short and long term, to facilitate this transition. In Part II of Morocco’s decarbonization pathway Policy Brief series, an update of the decarbonization scenarios was presented. It revealed that the Increased Ambition and Green Development scenarios achieve higher decarbonization targets than current policy. It showed that decarbonization targets will be achieved mainly through extensive electrification of end sectors and increasing renewable energy sources in the generation mix. Specifically, transportation, power generation, and the residential sector will be key sectors for decarbonizing Morocco’s energy consumption. In Part III of the aforementioned Policy Brief series, a cost-benefit analysis of this transition was conducted. This brief argues that this shift will generate full economic benefits in the hundreds of billions of dollars, even with the additional capital expenditures needed to modernize the sectors covered, namely the transport, residential, industry and services, agriculture, and power sectors. Achieving this vision and reducing decarbonization costs will therefore require some incentives for the five sectors covered. In this sense, Part IV will address the remaining barriers to energy transition in each sector and propose short and long-term recommendations to support decarbonization, including financial and non-financial policy measures while considering distributional concerns and impacts. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb26-21&r= |
| By: | Rim Berahab; Uri Dadush |
| Abstract: | As COP 26 unfolds, more attention is likely to be paid to big emitters such as China and the United States than to the situation of small developing countries, even though they are more exposed to the consequences of climate change. Morocco falls into this category. This Policy Brief examines Morocco's mitigation objectives under its NDCs and its performance to date before exploring the needed measures to achieve the 2030 mid- term goal. Although Morocco has made significant progress in terms of decarbonization, overall performance is below what was expected. Meeting its NDC targets, thus, requires a considerable deceleration of Morocco's emissions, which can constitute a significant challenge given the financial and social implications of the energy transition. This is a challenge that can be met with appropriate policies. Meanwhile, recent initiatives by the EU and the US to link trade policies with carbon emissions send an important message to the rest of the world that the cost of inaction on climate policy in terms of lost business opportunities may come sooner than expected. |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb43-21&r= |
| By: | Nicolas Koch (Mercator Research Center for Global Commons and Climate Change (MCC), EUREF Campus 19, 10829 Berlin, Germany; Institute of Labor Economics (IZA), Schaumburg-Lippe-Straße 5–9, 53113 Bonn, Germany); Nolan Ritter (Mercator Research Center for Global Commons and Climate Change (MCC), EUREF Campus 19, 10829 Berlin, Germany); Alexander Rohlf (Mercator Research Center for Global Commons and Climate Change (MCC), EUREF Campus 19, 10829 Berlin, Germany); Francesco Scarazzato (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | This paper investigates whether the world’s most mature electric vehicle (EV) market in Norway has overcome critical mass constraints and can achieve sustainable long-term equilibria without subsidies. We estimate a structural model that allows for multiple equilibria emerging from the interdependence between EV demand and charging station supply. We first estimate the resulting indirect network effects using an instrumental variable approach. Then, we simulate long-term market outcomes for each of the 422 Norwegian municipalities. We find that almost 20% of all municipalities faced critical mass constraints in the earliest stage of the market. Half of them are effectively trapped in a zero-adoption equilibrium. However, in the maturing market, all municipalities have passed critical mass. Overall, about 60% of the Norwegian population now lives in municipalities with a high-adoption equilibrium, even if subsidies were removed. This suggests that critical mass constraints do no longer justify the provision of subsidies. |
| Keywords: | electric vehicles, network externalities, critical mass, subsidies |
| JEL: | H23 L62 Q48 Q58 R48 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp317&r= |
| By: | Brown, David P. (University of Alberta, Department of Economics); Sappington, David E.M. (University of Florida) |
| Abstract: | We examine the distinct impacts of forward contracting on generators and buyers of electricity. Increased forward contracting systematically reduces the variance of a generator's profit but can increase the variance of a buyer's profit. Consequently, increased risk aversion or market uncertainty can lead buyers, but not generators, to prefer reduced levels of forward contracting. We examine how the extent of equilibrium forward contracting varies with industry conditions, including the number of generators, the number of buyers, their aversion to profit variation, and the structure of retail electricity prices. |
| Keywords: | forward contracting; risk aversion; electricity sector |
| JEL: | L51 L94 Q28 Q40 |
| Date: | 2021–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2021_012&r= |
| By: | Bartels, Lara; Kesternich, Martin; Löschel, Andreas |
| Abstract: | With the increasing recognition of the use of reforestation measures as a complement to conventional carbon emissions avoidance technologies it is important to understand the market valuation of local forest carbon sinks for climate change mitigation. We conducted a framed-field experiment among a Germany-wide sample to provide a revealed preference study on the individual willingness to pay (WTP) for carbon sequestration through forests. Our particular focus is on the role of local co-benefits of climate protection activities. In addition, we add geo-data to our experimental data to analyze the impact of spatial variation on the individual WTP. We find that the WTP for carbon removal exceeds the WTP for mitigation efforts found in previous studies. While spatial distances does affect the likelihood to contribute to a local carbon sink, it does not affect the average amount given. Additional survey data finds that trust in forest measures is higher compared to mitigation via an emissions trading scheme, whichcould explain the comparably high WTP. |
| Keywords: | voluntary provision of environmental public goods,climate change mitigation,carbon sequestration,willingness to pay,co-benefits,revealed preferences,framed-field experiment |
| JEL: | Q51 Q54 C93 Q23 H41 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:21088&r= |
| By: | Rodier, Caroline; Kaddoura, Ihab; Chai, Huajun |
| Abstract: | The research team used the Los Angeles MATSim model to evaluate the travel, greenhouse gas(GHGs), and equity impacts of single-and multiple-passenger automated taxi scenarios, including free transit fares and a VMT tax. The results indicate that automated taxis increase VMT by about 20 percent across scenarios, and automated taxis mode shares more than offset reductions in personal vehicle travel. The automated taxi-only scenario also reduces transit travel by about 50 percent, but the addition of free transit fares reversed this decline and increased transit use somewhat. New empty passenger automated taxi travel compounds the impact of mode shifts in these scenarios and further increases vehicle travel. There is a slight change in mean vehicles speeds across all scenarios. When automated taxis are not battery electric vehicles (BEVs), GHG emissions increase from 16 to 18 percent across scenarios. However, GHGs decline by 23 to 26 percent when automated taxis are BEVs. The equity analysis shows that the automated taxis scenarios provide more accessibility benefits for travelers in three low-income classes than total benefits and benefits for the middle-and high-income travelers. The addition of free transit to the shared automated taxis-only scenario dramatically increases low-income benefits. The VMT tax eliminates almost all of the benefits from the automated taxi and free transit scenarios and creates losses for all three low-income groups. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Automated vehicles, ridehailing, pooled ridehailing, free transit, distance-based road charges, travel and equity impact |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt01g0w1gj&r= |
| By: | Brown, David P. (University of Alberta, Department of Economics); Eckert, Andrew (University of Alberta, Department of Economics); Olmstead, Derek E.H. (University of Calgary) |
| Abstract: | A challenge in setting regulated rates for default retail electricity products is the presence of both price and quantity risk faced by retailers. To address this challenge, regulators have been increasingly employing competition via full-load (load following) auctions to value these risks. In a full-load auction, firms bid to supply a fixed percentage of the regulated utility's hourly demand at a fixed price. In this paper, we develop a model of break-even pricing of electricity forward products under risk aversion, based on a mean-variance utility function. We use this model to evaluate the performance of full-load auctions in Alberta, where the largest regulated retail provider adopted such auctions in December 2018. We find that winning full-load bids exceed break-even levels, even allowing for risk-aversion, but that the difference falls over time. This reduction coincides with an increase in the number of bidders active in the full-load auctions. Our paper highlights the importance of sufficient participation for the success of full-load auctions and the potential role for competitive markets in determining the value of risk faced by retailers. |
| Keywords: | Electricity; Forward Contracts; Regulation; Procurement Auctions |
| JEL: | L51 L94 Q48 |
| Date: | 2021–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2021_014&r= |
| By: | Emily Schulte; Fabian Scheller; Wilmer Pasut; Thomas Bruckner |
| Abstract: | Although single empirical studies provide important insights into who adopts a specific LCT for what reason, fundamental questions concerning the relations between decision subject (= who decides), decision object (= what is decided upon) and context (= when and where it is decided) remain unanswered. In this paper, this research gap is addressed by deriving a decision framework for residential decision-making, suggesting that traits of decision subject and object are determinants of financial, environmental, symbolic, normative, effort and technical considerations preceding adoption. Thereafter, the decision framework is initially verified by employing literature on the adoption of photovoltaic systems, energy-efficient appliances and green tariffs. Of the six proposed relations, two could be confirmed (financial and environmental), one could be rejected (effort), and three could neither be confirmed nor rejected due to lacking evidence. Future research on LCT adoption could use the decision framework as a guidepost to establish a more coordinated and integrated approach, ultimately allowing to address fundamental questions. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.11867&r= |
| By: | Olatunji A. Shobande (University of Aberdeen, UK); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | The struggle to combat climate change remains complex and challenging. Currently, two climate change approaches, namely, mitigation and adaptation, have been widely supported. These are empirical, requiring further explanation of the main drivers of carbon emissions. This research seeks to tackle this problem by providing a strategy to reduce climate change impacts. This study contributes to the existing empirical literature in several ways. It investigates whether education and information and communication technology (ICT) matter to promote environmental sustainability in the Eastern and Southern Africa. The empirical evidence is based on the third-generation panel unit root test and panel cointegration tests that account for the potential issue of structural breaks in the series. We further dissect the long and short run dynamics using the panel Granger causality approach. Our findings show the possibility of using education and clean technology investment in a complementary strategy for mitigating carbon emissions and promoting environmental sustainability in the sampled countries. |
| Keywords: | Environmental Sustainability; ICT; Education; Eastern Africa; Southern Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/006&r= |
| By: | Kilian, Lutz; Zhou, Xiaoqing |
| Abstract: | Predictions of oil prices reaching $100 per barrel during the winter of 2021/22 have raised fears of persistently high inflation and rising inflation expectations for years to come. We show that these concerns have been overstated. A $100 oil scenario of the type discussed by many observers, would only briefly raise monthly headline inflation, before fading rather quickly. However, the short-run effects on headline inflation would be sizable. For example, on a yearover-year basis, headline PCE inflation would increase by 1.8 percentage points at the end of 2021 under this scenario, and by 0.4 percentage points at the end of 2022. In contrast, the impact on measures of core inflation such as trimmed mean PCE inflation is only 0.4 and 0.3 percentage points in 2021 and 2022, respectively. These estimates already account for any increases in inflation expectations under the scenario. The peak response of the 1-year household inflation expectation would be 1.2 percentage points, while that of the 5-year expectation would be 0.2 percentage points. |
| Keywords: | Scenario,inflation,expectation,oil price,gasoline price,household survey,core,pandemic,recovery |
| JEL: | E31 E52 Q43 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:670&r= |
| By: | Felix Bracht; Dennis Verhoeven |
| Abstract: | Existing estimates of the economic costs of air pollution do not account for its effect on inventive output. Using two weather phenomena as instruments, we estimate this effect in a sample of 1,288 European regions. A decrease in exposure to small particulate matter of 0:17 g=m3 – the average yearly reduction in Europe – leads to 1.7% more patented inventions. After ruling out reallocation of human capital, inventor mortality and R&D expenditures as drivers of the effect, we conclude that air pollution’s harm to economic output increases by at least 10% when accounting for innovation. |
| Keywords: | Air Pollution, Air Quality, Innovation, Patent, Productivity |
| Date: | 2021–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:ete:msiper:685945&r= |
| By: | Éloi Laurent (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po) |
| Abstract: | In this paper, I attempt to give empirical meaning to climate justice by defining simple criteria of allocation of the remaining global carbon budget based on biophysics constraints and recognized justice principles. The originality of the paper, beyond the choice of indicators meeting justice criteria and their empirical incarnation, is to connect global climate justice to national climate justice, showing how a given country (France in this case) can opt for a national strategy of emissions reduction criteria to allocate its national globally determined carbon budget. In this sense, the paper descends from biophysical constraint down to individual allocation. The first section of the paper deals with global climate justice while the second section relates to national climate justice in France. |
| Abstract: | Dans cet article, je tente de donner un sens empirique à la notion de justice climatique en définissant des critères simples d'allocation du bilan carbone global restant à émettre d'ici à 2050 sur la base de contraintes biophysiques et de principes de justice reconnus dans la littérature académique. L'originalité de l'article, au-delà du choix des indicateurs correspondant à ces critères et de leur incarnation empirique, est de relier la justice climatique mondiale à la justice climatique nationale, en montrant comment un pays donné (la France en l'occurrence) peut opter pour une stratégie nationale de réduction de ses émissions pour allouer son budget carbone national globalement déterminé. En ce sens, l'article permet de descendre de la contrainte biophysique jusqu'à l'allocation individuelle. La première section de l'article traite de la justice climatique mondiale tandis que la deuxième section porte sur les modalités de la justice climatique nationale en France. |
| Keywords: | climate justice,carbon budget,COP 26,France |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03474907&r= |
| By: | Stephie Fried; David Lagakos |
| Abstract: | Many policymakers view power outages as a major constraint on firm productivity in developing countries. Yet empirical studies find modest short-run effects of outages on firm performance. This paper builds a dynamic macroeconomic model to study the long-run general-equilibrium effects of power outages on productivity. Outages lower productivity in the model by creating idle resources, depressing the scale of incumbent firms and reducing entry of new firms. Consistent with the empirical literature, the model predicts small short-run effects of eliminating outages. However, the long-run general-equilibrium effects are much larger, supporting the view that eliminating outages is an important development objective. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9490&r= |
| By: | Raouf Boucekkine (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique - AMU - Aix Marseille Université); Giorgio Fabbri (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes); Salvatore Federico (UNISI - Università degli Studi di Siena = University of Siena); Fausto Gozzi (LUISS - Libera Università Internazionale degli Studi Sociali Guido Carli [Roma]) |
| Abstract: | We study the joint determination of optimal investment and optimal depollution in a spatiotemporal framework where pollution is transboundary. Pollution is controlled at a global level. The regulator internalizes that: (i) production generates pollution, which is bad for the wellbeing of population, and that (ii) pollution flows across space driven by a diffusion process. We solve analytically for the optimal investment and depollution spatiotemporal paths and characterize the optimal long-term spatial distribution when relevant. We finally explore numerically the variety of optimal spatial distributions obtained using a core/periphery model where the core differs from the periphery either in terms of input productivity, depollution efficiency, environmental awareness or self-cleaning capacity of nature. We also compare the distributions with and without diffusion. Key aspects in the optimal policy of the regulator are the role of aversion to inequality, notably leading to smoothing consumption across locations, and the control of diffusive pollution adding another smoothing engine. |
| Keywords: | Infinite dimensional optimal control problems,Decision analysis,Transboundary pollution,Pollution control,Geography |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03467909&r= |
| By: | Maximilien Germain (EDF R&D OSIRIS, EDF R&D, EDF, LPSM); Huy\^en Pham (LPSM, CREST, FiME Lab); Xavier Warin (EDF R&D OSIRIS, EDF R&D, EDF, FiME Lab) |
| Abstract: | We consider the control of McKean-Vlasov dynamics (or mean-field control) with probabilistic state constraints. We rely on a level-set approach which provides a representation of the constrained problem in terms of an unconstrained one with exact penalization and running maximum or integral cost. The method is then extended to the common noise setting. Our work extends (Bokanowski, Picarelli, and Zidani, SIAM J. Control Optim. 54.5 (2016), pp. 2568--2593) and (Bokanowski, Picarelli, and Zidani, Appl. Math. Optim. 71 (2015), pp. 125--163) to a mean-field setting. The reformulation as an unconstrained problem is particularly suitable for the numerical resolution of the problem, that is achieved from an extension of a machine learning algorithm from (Carmona, Lauri{\`e}re, arXiv:1908.01613 to appear in Ann. Appl. Prob., 2019). A first application concerns the storage of renewable electricity in the presence of mean-field price impact and another one focuses on a mean-variance portfolio selection problem with probabilistic constraints on the wealth. We also illustrate our approach for a direct numerical resolution of the primal Markowitz continuous-time problem without relying on duality. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.11059&r= |
| By: | Gough, Ian |
| Abstract: | More nation states are now committing to zero net carbon by 2050 at the latest, which is encouraging, but none have faced up to the transformation of economies, societies and lives that this will entail. This article considers two scenarios for a fair transition to net zero, concentrating only on climate change, and discusses the implications for contemporary ‘welfare states’. The first is the Green New Deal framework coupled with a ‘social guarantee’. I argue that expanded public provision of essential goods and services would be a necessary component of this strategy. The second scenario goes further to counteract runaway private consumption by building a sufficiency economy with ceilings to income, wealth and consumption. This would require a further extension of state capacities and welfare state interventions. The article provides a framework for comparing and developing these two very different approaches. |
| Keywords: | Green New Deal; Universal Basic Services; sufficiency; floors; ceilings; CUP deal |
| JEL: | J1 N0 |
| Date: | 2021–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:111950&r= |
| By: | Emily Schulte; Fabian Scheller; Daniel Sloot; Thomas Bruckner |
| Abstract: | The adoption of residential photovoltaic systems (PV) is seen as an important part of the sustainable energy transition. To facilitate this process, it is crucial to identify the determinants of solar adoption. This paper follows a meta-analytical structural equation modeling approach, presenting a meta-analysis of studies on residential PV adoption intention, and assessing four behavioral models based on the theory of planned behavior to advance theory development. Of 653 initially identified studies, 110 remained for full-text screening. Only eight studies were sufficiently homogeneous, provided bivariate correlations, and could thus be integrated into the meta-analysis.The pooled correlations across primary studies revealed medium to large correlations between environmental concern, novelty seeking, perceived benefits, subjective norm and intention to adopt a residential PV system, whereas socio-demographic variables were uncorrelated with intention. Meta-analytical structural equation modeling revealed a model (N = 1,714) in which adoption intention was predicted by benefits and perceived behavioral control, and benefits in turn could be explained by environmental concern, novelty seeking, and subjective norm. Our results imply that measures should primarily focus on enhancing the perception of benefits. Based on obstacles we encountered within the analysis, we suggest guidelines to facilitate the future aggregation of scientific evidence, such as the systematic inclusion of key variables and reporting of bivariate correlations. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.12464&r= |
| By: | Ren\'e A\"id; Lamia Ben Ajmia; M'hamed Ga\"igi; Mohamed Mnif |
| Abstract: | We study a nonzero-sum stochastic differential game with both players adopting impulse controls, on a finite time horizon. The objective of each player is to maximize her total expected discounted profits. The resolution methodology relies on the connection between Nash equilibrium and the corresponding system of quasi-variational inequalities (QVIs in short). We prove, by means of the weak dynamic programming principle for the stochastic differential game, that the value function of each player is a constrained viscosity solution to the associated QVIs system in the class of linear growth functions. We also introduce a family of value functions converging to our value function of each player, and which is characterized as the unique constrained viscosity solutions of an approximation of our QVIs system. This convergence result is useful for numerical purpose. We apply a probabilistic numerical scheme which approximates the solution of the QVIs system to the case of the competition between two electricity retailers. We show how our model reproduces the qualitative behaviour of electricity retail competition. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.10213&r= |
| By: | Jung, Heejung; Johnson, Kent C; Lopez, Brenda |
| Abstract: | Contribution of brake particle emissions to ambient PM2.5 is increasing. Previous studies focused on determination of brake emission rate from lab testing and so it lacks brake activity of real world conditions. The study aimed to establish a test method to determine brake activity of a heavy-duty vehicle. Brake parameters and vehicle parameters were measured during two chassis cycles and two on-road test tests. Brake activity was quantified with brake pressure signal as the first indicator and vehicle speed as the second indicator. Temperature increase was related to the kinetic loss of the vehicle and cooling and heating of brake pad was repeated during on road test. Resulting brake activity was presented in the form of histogram. Future test should use shorter copper cap for thermocouple to better sense friction surface temperature. It is recommended to measure both activity and emissions during on-road test so that a better relationship can be established between brake activity and brake particle emissions. View the NCST Project Webpage |
| Keywords: | Engineering, Heavy-duty vehicle, brake activity |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt4k35g4c0&r= |
| By: | Chen, Yunnan |
| Abstract: | Nigeria has been a primary destination for Chinese investment in the last two decades, as Chinese entrepreneurs and investors have been drawn by rich resources and huge market potential. However, challenges remain in harnessing the potential of this growing manufacturing investment for the structural transformation of the economy. This paper assesses the evolving landscape of Chinese investment in manufacturing and potential for technology transfers, finding a growing Chinese presence in manufacturing sectors, particularly in construction and consumer sectors. However technology transfer within these is highly uneven, and challenged by economic and policy instability in recent years. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:caripb:432020&r= |
| By: | Gábor Túry (Institute of World Economics, Centre for Economic and Regional Studies, ELRN) |
| Abstract: | Industry trends in recent years have confirmed that the production of electric vehicles in Europe will expand at an unprecedented rate in the coming years. Corporate strategies and new models also reinforce this statement: while maintaining traditional internal combustion propulsion, manufacturers are focusing on the production of electric vehicles. In addition to the emergence of new players, this raises a number of questions about the future and composition of the current supplier system. This working paper examines the role of Japanese automotive companies, focusing on the extent to which electromobility is changing their role in the supply chain. Taking into account short and medium term supply chain and industry trends and the expectations of automotive companies, there are three main factors that will determine the prospects for Japanese suppliers producing in Europe. Declining European production, changing type and quantity of components needed, and last but not least the different strategy of the OEMs and the European support system can displace the overseas companies. |
| Keywords: | Central Europe, automotive industry, electromobility |
| JEL: | L23 L62 O33 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:iwe:workpr:265&r= |
| By: | Edmond Noubissi (University of Dschang, Cameroon); Loudi Njoya (University of Dschang, Cameroon) |
| Abstract: | This paper contributes to the literature on the relationship between gender and the environment. There are indeed very few studies on this topic, and existing studies have not yet investigated the channels through which women's presence in parliaments affects the environment. We use a stochastic impact model extended to the population, wealth and technology regression model to estimate both the effect and transmission of women parliamentarians on the environment in 25 African countries from 2000 to 2016. The empirical results show that the presence of women in parliament contributes to the improvement of environmental quality in Africa. In addition, the mediation analysis reveals that women parliamentarians not only have a direct positive effect on the environment but also a positive indirect effect through their impact on per capita income, corruption and development assistance. To enhance the positive effects of women parliamentarians on the environment, governments should design policies to encourage women to participate in economic activities, integrate anti-corruption programmes and participate in the management of development assistance. |
| Keywords: | Women's parliamentary, environmental quality, African countries |
| JEL: | F63 F64 J16 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:21/010&r= |
| By: | Takanori Ida; Takunori Ishihara; Koichiro Ito; Daido Kido; Toru Kitagawa; Shosei Sakaguchi; Shusaku Sasaki |
| Abstract: | Identifying who should be treated is a central question in economics. There are two competing approaches to targeting - paternalistic and autonomous. In the paternalistic approach, policymakers optimally target the policy given observable individual characteristics. In contrast, the autonomous approach acknowledges that individuals may possess key unobservable information on heterogeneous policy impacts, and allows them to self-select into treatment. In this paper, we propose a new approach that mixes paternalistic assignment and autonomous choice. Our approach uses individual characteristics and empirical welfare maximization to identify who should be treated, untreated, and decide whether to be treated themselves. We apply this method to design a targeting policy for an energy saving programs using data collected in a randomized field experiment. We show that optimally mixing paternalistic assignments and autonomous choice significantly improves the social welfare gain of the policy. Exploiting random variation generated by the field experiment, we develop a method to estimate average treatment effects for each subgroup of individuals who would make the same autonomous treatment choice. Our estimates confirm that the estimated assignment policy optimally allocates individuals to be treated, untreated, or choose themselves based on the relative merits of paternalistic assignments and autonomous choice for individuals types. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.09850&r= |
| By: | Hammer, Thomas; Siegfried, Patrick |
| Abstract: | This text will explain which role “Green Bonds” play in financing projects and how the green factor is weighted. It will be discussed on how the term “green” can change the price of the bond, if there is a “green premium” and for which group of investors this type of bond is interesting. We will discuss ways to reduce their cost of capital, also considering the risks and on ways on how to improve their conditions. The sustainable and eco-friendly aspects are also highlighted in this text and they might become crucial in future investing, which gives the bond an interesting role. |
| Keywords: | Green Bonds, ESG, Sustainability, COP21 |
| JEL: | G11 G12 |
| Date: | 2021–12–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111394&r= |
| By: | Elena V. Sautkina (National Research University Higher School of Economics); Fatikha B. Agissova (National Research University Higher School of Economics); Alexandra A. Ivanova (National Research University Higher School of Economics); Kingsley S. Ivande (National Research University Higher School of Economics); Veronika S. Kabanova (National Research University Higher School of Economics); Natalia A. Patrakova (National Research University Higher School of Economics) |
| Abstract: | In the context of global environmental and climate change caused by human impact, the study of pro-environmental behaviour and its determinants is important. At present, research on determinants of pro-environmental behaviour in Russia is sparse. Our study addresses this evidence gap and looks at the political, environmental and social determinants of pro-environmental behaviour. Adult participants (N=462, mean age = 36.73 years, SD = 11.77, 56.7% females) took part in an online survey measuring personal values, environmental motivation, environmental concern, connectedness to nature, institutional trust, political values, populism, patriotism and pro-environmental behaviour. The results show that different types of pro-environmental behaviour are predicted by different variables. Despite this, some common patterns emerge. The strongest predictor of all behaviour types was integrated regulation, the most autonomous form of environmental motivation. Hedonic values negatively predicted all pro-environmental behaviour, except resource conservation. For waste management and social behaviour, some environmental predictors had very high explanatory power, while for resource conservation, sustainable purchasing and climate relevant actions, a greater number of predictors with low explanatory power was observed |
| Keywords: | pro-environmental behaviour, values, attitudes, knowledge, motivation, patriotism, trust, Russia. |
| JEL: | Z |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hig:wpaper:130psy2021&r= |
| By: | Muhammad Nadeem Mirza (School of Politics and International Relations, Quaid-i Azam University); Shaukat Ayub |
| Abstract: | With the signing of several lucrative deals on oil, gas, currency, and other bilateral and multilateral arrangements, Sino-Russian relations over the last three decades have reached unprecedented levels. However, as China begins to translate its economic influence in Central Asia into political one, Russia started feeling uneasy about losing its traditional sphere of influence in its 'Near-Abroad.' After the unveiling of 'One Belt One Road' (OBOR) initiative in 2013, President Putin, a year later, announced the 'Eurasian Economic Union' (EAEU). This was a calculated geopolitical decision on the part of Russia to rescue Central Asia from falling entirely in the Chinese sphere of influence. Against this backdrop, the regional order invites a deep sense of mistrust because there is a lack of realization on the part of both states as to where one's limits end and the other's begin. In the light of these developments, this study endeavors to address the question that why is Russia allowing China to expand its influence in Central Asia despite the growing economic asymmetry between them and what are the areas of convergence and divergence between them? The study hypothesizes that China and Russia have adopted the policy of competitive collaboration-cooperation where there exists convergence and competition when it comes to divergence of interests-in Central Asia. |
| Abstract: | Avec la signature de plusieurs accords lucratifs sur le pétrole, le gaz, la monnaie et d'autres accords bilatéraux et multilatéraux, les relations sino-russes au cours des trois dernières décennies ont atteint des niveaux sans précédent. Cependant, alors que la Chine commence à traduire son influence économique en Asie centrale en une influence politique, la Russie a commencé à se sentir mal à l'aise de perdre sa sphère d'influence traditionnelle dans son « Near-Abroad ». Après le dévoilement de l'initiative « One Belt One Road » (OBOR) en 2013, le président Poutine, un an plus tard, a annoncé l'« Union économique eurasienne » (EAEU). Il s'agissait d'une décision géopolitique calculée de la part de la Russie pour éviter que l'Asie centrale ne tombe entièrement dans la sphère d'influence chinoise. Dans ce contexte, l'ordre régional invite à un profond sentiment de méfiance parce qu'il y a un manque de prise de conscience de la part des deux États quant à l'endroit où s'arrêtent les limites de l'un et où commencent celles de l'autre. A la lumière de ces évolutions, cette étude s'attache à répondre à la question : pourquoi la Russie permet-elle à la Chine d'étendre son influence en Asie centrale malgré l'asymétrie économique croissante entre elles et quelles sont les zones de convergence et de divergence entre elles ? L'étude fait l'hypothèse que la Chine et la Russie ont adopté la politique de collaboration concurrentielle-coopération là où il existe une convergence et une concurrence lorsqu'il s'agit de divergence d'intérêts-en Asie centrale. |
| Keywords: | near-abroad,New Great Game,geopolitics,pipeline politics,International Relations,Russia,Great Power Politics,China |
| Date: | 2021–11–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03452696&r= |
| By: | Andrew Mwaba; Steve Kayizzi-Mugerwa |
| Abstract: | Zambia has changed its mineral tax regime repeatedly during the past decades in a bid to raise mineral revenue, but with only modest success. This paper looks at what the country needs to do to create a mining fiscal regime that could sustain operations, boost output, and raise revenues without eroding investment and profitability in the mines. The paper argues that enhancing local ownership of the mines will help assuage resource nationalism while stabilizing the business environment overall. |
| Keywords: | Fiscal regime, Investment, Mineral tax, Transfer pricing, low-carbon future, Mining taxation |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2021-178&r= |
| By: | Raouf Boucekkine; Giorgio Fabbri; Salvatore Federico; Fausto Gozzi |
| Abstract: | We characterize the shape of spatial externalities in a continuous time and space differential game with transboundary pollution. We posit a realistic spatiotemporal law of motion for pollution (diffusion and advection), and tackle spatiotemporal non-cooperative (and cooperative) differential games. 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. We allow for a rich set of geographic heterogeneities across states. We solve analytically the induced non-cooperative differential game and characterize its long-term spatial distributions. In particular, we prove that there exist a Perfect Markov Equilibrium, unique among the class of the affine feedbacks. We further provide with a full exploration of the free riding problem and the associated border effect. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2112.10584&r= |
| By: | Ramiro Bautista Espinosa (El Colegio de México); Diana Terrazas Santamaría (El Colegio de México) |
| Abstract: | En el presente trabajo presentamos un modelo de valuación económica bajo incertidumbre de un proyecto de inversión de energía fotovoltaica (FV) en México. Para ello utilizamos el enfoque de opciones reales que nos permite generar simulaciones que consideran la volatilidad futura del mercado tanto en beneficios como en los precios de la electricidad. Nuestra principal aportación reside en que consideramos un sistema de almacenamiento (SdA) que tiene la principal función de llevar oferta de energía de horas de menor demanda a horas del mismo día con mayor demanda. Nuestros resultados muestran que, modelando el valor de proyectos con SdA y sin SdA, el proyecto sin SdA tiene un valor considerablemente mayor para los casos base. Sin embargo, este resultado cambia si la tendencia y/o volatilidad de los beneficios esperados para una planta con SdA fueran relativamente mayores. Cuando comparamos dos alternativas del mismo proyecto, con SdA y sin SdA, podemos saber en qué condiciones un inversionista estaría indiferente entre las dos opciones de inversión. Es decir, encontramos el costo de oportunidad considerando que las condiciones del mercado son inciertas. Nuestros resultados pueden ser interpretados como el subsidio que debería ser otorgado a un proyecto privado para que fuera rentable añadir SdA. |
| Keywords: | opciones reales, almacenamiento de energía, energía fotovoltaica, inversión bajo incertidumbre |
| JEL: | C51 C53 C58 G12 G17 Q41 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:emx:ceedoc:2021-09&r= |
| By: | Matthew Agarwala; Matt Burke; Patrycja Klusak; Kamiar Mohaddes; Ulrich Volz; Dimitri Zenghelis |
| Abstract: | Both the physical and transition-related impacts of climate change pose substantial macroeconomic risks. Yet, markets still lack credible estimates of how climate change will affect debt sustainability, sovereign creditworthiness, and the public finances of major economies. We present a taxonomy for tracing the physical and transition impacts of climate change through to impacts on sovereign risk. We then apply the taxonomy to the UK’s potential transition to net zero. Meeting internationally agreed climate targets will require an unprecedented structural transformation of the global economy over the next two or three decades. The changing landscape of risks warrants new risk management and hedging strategies to contain climate risk and minimise the impact of asset stranding and asset devaluation. Yet, conditional on action being taken early, the opportunities from managing a net zero transition would substantially outweigh the costs. |
| Keywords: | Sovereign debt, climate change, net zero, transition risk, productivity |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2021-80&r= |