|
on Energy Economics |
| By: | Pejman Bahramian (Department of Economics, Queen's University) |
| Abstract: | The Province of Ontario has had an aggressive program of introducing wind electricity generation technologies into its generation supply mix. This, combined with the rigid baseload production by nuclear and hydro plants, has for 20 years created a surplus baseload electricity supply. Pumped hydro storage (PHS) is suggested as an economically viable technology for storing energy from non-dispatchable wind energy sources. 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. Two situations are analyzed. First, the PHS plant uses only surplus energy for the first 20 years of operation. Second, an additional 20 years of PHS usefulness is added by making investments in wind electricity generation to provide energy for pumping. Given the capital costs of building PHS in Ontario, the PHS expansion is not economically cost-effective for utilizing 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 cost-effective. It would be much better socially from a world perspective and economically from Canada’s perspective if the surplus baseload electricity from Ontario were given away free to the USA. It could then be used to reduce generation by natural gas plants in the USA, hence reducing CO2 emissions globally, without any incremental economic cost to Canada. |
| Keywords: | Economic analysis, Electricity, Ontario, Pumped hydro storage, Wind power |
| JEL: | O55 D61 Q42 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1480&r= |
| By: | Behrang Shirizadeh (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, TotalEnergies); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In the wake of the Paris agreement, France has set a target of zero net greenhouse gas emissions by 2050. This target can only be achieved by rapidly decreasing the proportion of fossil fuels and accelerating the deployment of low-carbon technologies. We develop a detailed model of the power sector to investigate the role of different low- and negative-emission technologies in the French electricity mix and we identify the impact of the relative cost of these technologies for various values of the social cost of carbon (SCC). We show that for a wide range of SCC values (from 0 to €500/tCO2), the optimal power mix consists of roughly 75% of renewable power. For a SCC value of €100/tCO2, the power sector becomes nearly carbon neutral while for €200/tCO2 and more it provides negative emissions. The availability of negative emission technologies can decrease the system cost by up to 18% and can create up to 20MtCO2/year of negative emissions, while the availability of new nuclear power stations is much less important. This study demonstrates the importance of an effective SCC value (as a tax for positive emissions and remuneration for negative emissions) in reaching carbon neutrality at moderate cost. Negative emissions may represent an important carbon market which could attract investments if supported by public policies. |
| Keywords: | Power system modeling,Variable renewables,Negative emissions,Social cost of carbon,Nuclear energy. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03508233&r= |
| By: | Schlund, David (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Theile, Philipp (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Hydrogen is viewed as a promising supplement in future energy systems with high penetration rates of renewable energy (RE) generation. As conversion technology between the two secondary energy carriers, hydrogen and electricity, particularly grid-connected electrolysers, have a role to play. During the market ramp-up, grid-connected electrolysers could cause unwanted side-effects through inducing additional CO2 emissions from the power sector. Since the reduction of CO2 remains the overall goal, a simultaneity obligation between RE generation and hydrogen production for the dispatch are being discussed to limit associated emissions from an electrolyser’s energy consumption. The paper presents a model framework including a mixed-integer linear program and a Markov chain Monte Carlo simulation for stochastic electricity market prices to assess a grid-connected electrolyser’s dispatch. Within a case study representing the current state of the German electricity market, the effect of simultaneity on the electrolyser’s dispatch is assessed. The results show that the simultaneity reduces the CO2 emission intensity of hydrogen while constraining the profits from cost-optimal dispatch. The simultaneity represents implicit storage of the RE generation’s green characteristic, which allows the electrolyser to shift RE production to low price periods. Depending on the simultaneity interval, this affects both the average contribution margin and the risk of the electrolyser dispatch. Regulations aiming at the interface between hydrogen and electricity must consider the trade-off between the economic viability of electrolysers, full load hours, and the associated emissions of electricity-basedhydrogen. |
| Keywords: | Hydrogen; Power-to-Gas; Renewable Energy Support; Optimisation |
| JEL: | C61 L51 M20 Q41 Q42 Q48 |
| Date: | 2021–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2021_010&r= |
| By: | Lukas Boer; Andrea Pescatori; Martin Stuermer |
| Abstract: | The energy transition requires substantial amounts of metals such as copper, nickel, cobalt and lithium. Are these metals a key bottleneck? We identify metal-specific demand shocks, estimate supply elasticities and pin down the price impact of the energy transition in a structural scenario analysis. Metal prices would reach historical peaks for an unprecedented, sustained period in a net-zero emissions scenario. The total value of metals production would rise more than four-fold for the period 2021 to 2040, rivaling the total value of crude oil production. Metals are a potentially important input into integrated assessments models of climate change. |
| Keywords: | Conditional forecasts, structural vector autoregression, structural scenario analysis, energy transition, metals, fossil fuels, prices, climate change |
| JEL: | C32 C53 Q3 Q4 Q54 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1976&r= |
| By: | Charitopoulos, V.; Fajardy, M.; Chyong, C. K.; Reiner, D. |
| Abstract: | Unlike power sector decarbonisation, there has been little progress made on heat, which is currently the biggest energy consumer in the UK, accounting for 45% of total energy consumption in 2019, and almost 40% of UK GHG emissions. Given the UK’s legally binding commitment to "Net-Zero" by 2050, decarbonising heat is becoming urgent and currently one of the main pathways involves its electrification. Here, we present a spatially-explicit optimisation model that investigates the implications of electrifying heat on the operation of the power sector. Using hourly historical gas demand data, we conclude that the domestic peak heat demand is almost 50% lower than widely-cited values. A 100% electrification pathway can be achieved with only a 1.3-fold increase in generation capacity compared to a power-only decarbonisation scenario, but only, by leveraging the role of thermal energy storage technologies without which a further 40% increase would be needed. |
| Keywords: | heat electrification, energy systems optimisation, carbon capture and storage, heat pumps, unit commitment, investment planning |
| JEL: | C31 C61 C63 L94 L95 Q42 Q48 |
| Date: | 2022–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2210&r= |
| By: | Giovanni Mandras (European Commission - JRC); Simone Salotti (European Commission - JRC) |
| Abstract: | The European Commission is working in order to ensure a smooth transition to cleaner forms of energy production away from fossil fuels in order to meet the EU objective of reaching climate neutrality by 2050. The Just Transition Mechanism was launched to manage this transition, under the European Green Deal. A key information needed to do that is the number of workers who will be impacted by the ongoing decarbonisation process. This technical report contains the RHOMOLO-IO estimates of the number of jobs indirectly related to the energy production industry of coal, peat, and oil shale. These activities directly employ more than 200,000 workers in the EU, and our results suggest that about 140,000 additional jobs are indirectly related to those. This is a significant number that should be considered by the policy makers dealing with the shift away from energy production with fossil fuels. |
| Keywords: | region, growth, Rhomolo, indirect jobs, coal, input-output analysis. |
| JEL: | C68 R13 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:termod:202111&r= |
| By: | Maria Nieto |
| Abstract: | This paper analyzes the most recent NDCs as well as public political commitments of the US, China, the EU and Japan (56% of the world GHG emissions) to meet the goal of reaching the 2050 net zero emissions target necessary to limit global warming to the 1.5C. This analysis is made against the background of the transition pathways defined by the REMIND-MAgPIE 2.1-4.2 integrated assessment model for an orderly transition to reach that target. The commitments of US, China, the EU and Japan are not in line with the requirements to limit global warming. Only the EU seems to have an adequate, sufficiently detailed and legally binding strategy to fulfill that pledge. This finding is in line with the recent United Nations Report concluding that even with enhanced 2030 targets and the additional public statements, the world is on track for a temperature increase between 1.8-2.4C this century even assuming that every country puts in place effective policies that will fully achieve its set targets. In all four regions of the world and particularly in 2025-2030, the orderly transition to net zero around 2050 demands the highest investments in renewable energies for electricity, CCUS and energy efficiency. China, the most critical to reach global carbon neutrality, is by far the most highly dependent on CCUS and, more generally, on CDR technologies to reach the 2050 net zero target due to an energy mix dominated by fossil fuels. |
| Keywords: | Environment, international public goods, environmental economics-technological innovation |
| JEL: | F64 L38 O44 Q55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp22170&r= |
| By: | Dumitrescu, Raluca (MicroEnergy Systems Research Group, Technische Universität Berlin); Lüth, Alexandra (Department of Economics, Copenhagen Business School); Weibezahn, Jens (Department of Economics, Copenhagen Business School); Groh, Sebastian (BRAC Business School (BBS), BRAC University) |
| Abstract: | In this paper, we are proposing a policy innovation for both a more sustainable and a more inclusive electrification strategy, particularly for improved energy access in the Global South: combining the extension of national grids whilst taking advantage of existing decentralized renewable energy infrastructure allowing their collective feed-in to the national grid. We are introducing community power purchase agreements as a regulatory instrument for compensating and incentivizing the actors active at the intersection of the two infrastructures (prosumer, grid operator, state utility).We use both a mixed complementarity and a linear model for analyzing the concept in a case study of Pirgacha village, Bangladesh, in which a cluster of solar home system prosumers are interconnected into a renewable energy swarm grid. We determine the energy infrastructure cost components and their split among the actors. The results demonstrate a series of co-benefits: (a) the prosumer is monetarily rewarded for the utilization of her assets and for electricity trading with no additional infrastructure investment; (b) if the state utility takes over the investment costs with the interconnection infrastructure and outsources the integrated grid operations and maintenance to the private sector, the otherwise high grid expansion costs can be saved and repurposed in other infrastructure investments; (c) the operations of the decentralized renewable energy company are no longer threatened by the grid expansion and it can become an Integrated Grid Operator. |
| Keywords: | Decentralized renewable energy; Swarm grids; Grid integration; Power purchase agreements; Integrated grid operator |
| JEL: | C61 C63 D47 L94 Q41 Q42 Q48 |
| Date: | 2022–02–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2021_019&r= |
| By: | Salaheddine Soummane (KAPSARC - King Abdullah Petroleum Studies and Research Center); F. Ghersi (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Electricity demand in Saudi Arabia is undergoing unprecedented changes following the implementation of efficiency measures and energy price reforms. These changes raise uncertainties about the potential trajectory of long-term electricity demand. Thus, this study uses a computable general equilibrium model to project sectoral electricity demand in Saudi Arabia through 2030. We project that growth in total Saudi electricity demand will significantly decelerate over the coming decade compared with historical trends. In our reference scenario, this demand reaches 365.4 terawatthours (TWh) by 2030. However, our sectoral decomposition shows large disparities across sectors. Demand is projected to grow more rapidly in the industrial and services segments than in the residential sector. We also simulate four additional scenarios for domestic electricity price reforms and efficiency policies. Successfully implementing these measures may result in significant energy savings. Aligning Saudi electricity prices with the average electricity price among G20 countries can reduce total electricity demand by up to 71.6 TWh in 2030. Independently enforcing efficiency policies can reduce total electricity demand by up to 118.7 TWh. Moreover, alternative policy scenarios suggest that the macroeconomic gains from energy savings can alleviate some of the Saudi energy system's burden on public finance. |
| Keywords: | Electricity demand,General equilibrium model,Saudi Arabia,Electricity market reforms |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03500916&r= |
| By: | Miwa Nakai; Majah-Leah V. Ravago; Yoichi Miyaoka; Kiyoshi Saito; Toshi. H Arimura |
| Abstract: | In this paper, we aim to examine consumer behaviour concerning energy-efficient appliances in the context of a developing country. As a case study, we use the Philippines, one of the earliest countries in Southeast Asia to introduce appliance test standards. We conducted face-to-face surveys of potential purchasers of air conditioners (ACs) in Metropolitan Manila, where the percentage of AC owners has increased as a result of economic growth. The survey includes choice experiment questions to estimate preferences for AC attributes, including purchase price, additional functions, country of manufacturer and energy efficiency information. In addition, we examine the types of information on eco labels that encourage consumers to choose an energy-efficient AC, including the default option of an energy efficiency ratio, estimated cost per hour or an energy star rating. Our choice experiment analysis reveals that energy-efficient ACs made by domestic manufacturers with smart functions are more likely to be chosen by consumers. We find that the probability of an energy-efficient AC being chosen can be increased by approximately 15% if the eco label uses an energy star rating rather than an energy efficiency ratio. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:tcr:wpaper:e166&r= |
| By: | Jan Stede; Marc Blauert; Nils May |
| Abstract: | With the expansion of onshore wind power, countries increasingly consider the introduction of minimum distance regulations between wind turbines to nearby residential areas, to increase public acceptance. In 2014, the German federal state of Bavaria introduced a minimum distance regulation that requires new wind turbines to be ten times their total height away from settlements (10-H regulation). This translates into a distance of 1,900 metres on average, which far exceeds national provisions on minimum distances. Using a difference-in-differences approach, we find that the introduction of the 10-H regulation led to a decline of the newly added wind power capacity in Bavaria of between 62 percent and 90 percent. Moreover, the legislation affected technological parameters of new wind turbines, with severe unintended consequences for the deployment and cost of wind power. The regulation triggered a reduction of the height of new turbines, which lowered energy yields and increased levelized costs of electricity (LCOE) by about 0.2 ct/kWh. Furthermore, lower energy yields also require a higher absolute number of turbines in the long term to achieve the expansion targets for onshore wind energy, counteracting the goal of increasing acceptance of wind power. |
| Keywords: | Onshore wind power; minimum distance regulation; separation distance; panel data; difference-in-differences; causal inference |
| JEL: | C21 Q42 R14 R15 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1989&r= |
| By: | Burke, Andrew |
| Abstract: | The objective of this research was to determine the possibilities for and barriers to the provision of battery charging infrastructure for heavy-duty electric trucks at roadside rest areas in California. The initial sections of the report deal with the prospects for battery-electric long-haul trucks and the battery technology needed to make those electric trucks practical and the market for them to be successful. Simulations of trucks using present lithium battery technology indicated that for a range of 600 miles, the battery pack would need to store about1200 kWh. It is not practical to fit a battery of that size on the tractor of the truck. Another approach is to design a truck with a 300 mile range and plan to partially charge the battery once or twice during the day at rest areas. The truck could also be charged overnight at the rest areas. The total range per day could be 600 miles or more. The partial charges would put 65% of the capacity of the battery in at the 1C rate (a 60 minute charge). A 450-500 kW charging facility would be needed at the rest areas. The 300 mile range electric truck could operate much like the diesel truck with the driver taking 60 minute breaks every 200-225 miles to charge the battery. The cost analysis of the 300 mile truck indicates its TCO is less than that of the diesel truck. In California, there are Low Carbon Fuel Standards (LCFS) credits to reduce the costs to operate the charging facility. If applicable, the LCFS station credits ($/yr) can be as much as $65k/yr per charger up to the total cost of the facility in about five years. The LCFS electricity credit would permit the cost of electricity to be only $.12/kWh to charge the batteries, because the price includes the LCFS credit to the utility. Hence with LCFS credits, the cost of operating the charging facility could be low in the early years while the market for electric long-haul trucks is developing. Caltrans maintains 86 safety rest areas along highways in California with 53 along Interstate highways. If battery charging facilities were established at about 35 of these rest areas, they would be about 100 miles apart or a little closer. Caltrans could assist private contractors in establishing a network of charging facilities for electric trucks. The total initial cost could be about $50 million. The major barrier to Caltrans participating in the battery charging project is that current law prohibits commercial businesses at the rest areas which would not allow charging for the electricity dispensed. There has been consideration in both California and at the federal level to relax the non-commercial requirements at the rest areas for battery charging because the need for a battery charging network is well recognized. View the NCST Project Webpage |
| Keywords: | Engineering, Long haul truck, battery-electric, rest stops, battery charging |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3c07s2jh&r= |
| By: | Noam Bergman (Science Policy Research Unit, University of Sussex Business School, University of Sussex); Tim Foxon (Science Policy Research Unit, University of Sussex Business School, University of Sussex) |
| Abstract: | The world is currently facing two socio-technical transitions: shifting to a low-carbon society, and a digital revolution. Despite some claims to the contrary, evidence suggests that spread and adoption of ICT does not automatically lead to reduction in energy demand, if this stimulates new energy-using practices or wider economic growth. Despite this policy challenge, the two transitions are often considered separately. This study examines potential drivers of reductions or increases in energy demand due to digitalisation identified in recent leading global and UK net zero transitions scenarios. These include direct effects, indirect and rebound effects relating to home energy use and transport, and effects on economic growth. The scenarios are first analysed in relation to how they are situated in relation to different framing assumptions: (1) the relative focus on decarbonising energy supply or managing energy demand; (2) a focus on green growth or shifting to a focus on wellbeing (or even degrowth); (3) the extent to which they assume dominant business models led by large ICT firms, or alternative business models which empower communities and users; and (4) the extent to which they envisage key roles for ICT in relation to automation for optimising energy supply and demand or for empowering agency of users. Specific direct, indirect and economic growth effects of digitalisation on energy demand are then identified, which reflect these and other projections in the scenarios. These imply that the future pathways adopted for digitalisation will have a significant impact on future energy demand and hence on the feasibility and acceptability of achieving net zero goals. This suggests opportunities for further research and improving policy interactions between these two transitions, and stimulating greater public debate on the different framings for an ICT-driven low carbon transition. |
| Keywords: | digital, energy demand, low carbon targets, long-term scenarios |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:sru:ssewps:2021-09&r= |
| By: | Dongwei Zhao; Mehdi Jafari; Audun Botterud; Apurba Sakti |
| Abstract: | Arbitrage is one important revenue source for energy storage in electricity markets. However, a large amount of storage in the market will impact the energy price and reduce potential revenues. This can lead to strategic behaviors of profit-seeking storage investors. To study the investors' strategic storage investments, we formulate a non-cooperative game between competing investors. Each investor decides the storage investment over a long investment horizon, and operates the storage for arbitrage revenues in the daily electricity market. Different investors can deploy storage with different characteristics. Their decisions are coupled due to the market price that is determined by all the investors' decisions. We use market data from California ISO to characterize the storage impact on the market price, based on which we establish a centralized optimization problem to compute the market equilibrium. We show that an increasing number of investors will increase the market competition, which reduces investors' profits but increases the total invested storage capacity. Furthermore, we find that a slight increase in the storage efficiency (e.g., increased charge and discharge efficiency) can significantly improve an investor's profit share in the market. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2201.02290&r= |
| By: | Max Franks (Potsdam Institute for Climate Impact Research, Technische Universität Berlin); Matthias Kalkuhl (Mercator Research Institute on Global Commons and Climate Change, University of Potsdam); Kai Lessmann (Potsdam Institute for Climate Impact Research) |
| Abstract: | Carbon dioxide removal (CDR) moves atmospheric carbon to geological or land-based sinks. In a first-best setting, the optimal use of CDR is achieved by a removal subsidy that equals the optimal carbon tax and marginal damages. We derive second-best subsidies for CDR when no global carbon price exists but a national government implements a unilateral climate policy. We find that the optimal carbon tax differs from an optimal CDR subsidy because of carbon leakage, terms-of-trade and fossil resource rent dynamics. First, the optimal removal subsidy tends to be larger than the carbon tax because of lower supply-side leakage on fossil resource markets. Second, terms-of-trade effects exacerbate this wedge for net resource exporters, implying even larger removal subsidies. Third, the optimal removal subsidy may fall below the carbon tax for resource-poor countries when marginal environmental damages are small. |
| Keywords: | carbon pricing, trade, unilateral climate policy, terms-of-trade effects, removal subsidies |
| JEL: | F18 H23 Q37 Q5 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:43&r= |
| By: | William Wills (UFRJ - Universidade Federal do Rio de Janeiro); Emilio Lebre La Rovere (UFRJ - Universidade Federal do Rio de Janeiro); Carolina Grottera (UFRJ - Universidade Federal do Rio de Janeiro); Giovanna Ferrazzo Naspolini (UFRJ - Universidade Federal do Rio de Janeiro); Gaëlle Le Treut (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); F. Ghersi (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); Julien Lefèvre (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); Carolina Burle Schmidt Dubeux (UFRJ - Universidade Federal do Rio de Janeiro) |
| Abstract: | Curbing GHG emissions while preserving economic growth is one of the main challenges that developing countries are facing to meet the Paris Agreement commitments. Brazil's NDC target aims to reduce economy-wide absolute levels of GHG emissions by 37% in 2025 and 43% in 2030, compared to 2005 emissions. In this paper, we compare command-and-control and carbon pricing policies to induce the Brazilian economy to meet its NDC targets. We focus on analysing synergies and trade-offs in macroeconomic and social development, captured by economic growth and income distribution while reducing GHG emissions. By integrating a series of sectoral models and a computable general equilibrium (CGE) model, we develop and run different policy scenarios that simulate a set of carbon pricing schemes in Brazil. Our analysis shows that NDC implementation in Brazil under carbon pricing policies allows the country to meet its targets and improve economic and social indicators compared to a command-and-control policy. With about the same GHG emissions up to 2030, important macroeconomic and social co-benefits can be achieved under a carbon pricing policy in Brazil, allowing for reduced welfare losses against business-as-usual trends. Key policy insights Carbon pricing policies are more cost-effective to meet NDC targets in Brazil up to 2030, resulting in higher GDP and household income, in comparison to other individual policy instruments, including command-and-control and subsidies to investments. A carbon price of about 10 USD/tCO2e, combined importantly with deforestation rates under control, would allow Brazil to meet its NDC targets. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03500923&r= |
| By: | Grubb, Michael; Drummond, Paul; Poncia, Alexandra; McDowall, Will; Popp, David; Samadi, Sascha; Penasco, Cristina; Gillingham, Kenneth T.; Smulders, Sjak; Glachant, Matthieu; Hassall, Gavin; Mizuno, Emi; Rubin, Edward S.; Dechezleprêtre, Antoine; Pavan, Giulia |
| Abstract: | We conduct a systematic and interdisciplinary review of empirical literature assessing evidence on induced innovation in energy and related technologies. We explore links between demand-drivers (both market-wide and targeted); indicators of innovation (principally, patents); and outcomes (cost reduction, efficiency, and multi-sector/macro consequences). We build on existing reviews in different fields and assess over 200 papers containing original data analysis. Papers linking drivers to patents, and indicators of cumulative capacity to cost reductions (experience curves), dominate the literature. The former does not directly link patents to outcomes; the latter does not directly test for the causal impact of on cost reductions. Diverse other literatures provide additional evidence concerning the links between deployment, innovation activities, and outcomes. We derive three main conclusions. (a) Demand-pull forces enhance patenting; econometric studies find positive impacts in industry, electricity and transport sectors in all but a few specific cases. This applies to all drivers-general energy prices, carbon prices, and targeted interventions that build markets. (b) Technology costs decline with cumulative investment for almost every technology studied across all time periods, when controlled for other factors. Numerous lines of evidence point to dominant causality from at-scale deployment (prior to self-sustaining diffusion) to cost reduction in this relationship. (c) Overall innovation is cumulative, multi-faceted, and self-reinforcing in its direction (path-dependent). We conclude with brief observations on implications for modelling and policy. In interpreting these results, we suggest distinguishing the economics of active deployment, from more passive diffusion processes, and draw the following implications. There is a role for policy diversity and experimentation, with evaluation of potential gains from innovation in the broadest sense. Consequently, endogenising innovation in large-scale models is important for deriving policy-relevant conclusions. Finally, seeking to relate quantitative economic evaluation to the qualitative socio-technical transitions literatures could be a fruitful area for future research. |
| Keywords: | comitigation costs; directed technological change; endogenous technological change; energy innovation; induced innovation; innovation policy; learning by doing |
| JEL: | N0 |
| Date: | 2021–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113439&r= |
| By: | Arkadiusz Jędrzejewski; Katarzyna Sznajd-Weron; Jakub Pawłowski; Anna Kowalska-Pyzalska |
| Abstract: | We develop an empirically grounded agent-based model to explore the purchasing decisions of mutually interacting agents (consumers) between three types of alternative fuel vehicles. We calibrate the model with recently published empirical data on consumer preferences towards such vehicles. Furthermore, running the Monte Carlo simulations, we show possible scenarios for the development of the alternative fuel vehicle market depending on the marketing strategies employed. |
| Keywords: | Agent-based model; Diffusion; Alternative fuel vehicles |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ahh:wpaper:worms2201&r= |
| By: | Filippo Maria D’Arcangelo; Ilai Levin; Alessia Pagani; Mauro Pisu; Åsa Johansson |
| Abstract: | Global progress towards tackling climate change is lagging. This paper puts forward a framework to design comprehensive decarbonisation strategies while promoting growth and social inclusion. It first highlights the need of evaluating a country’s national climate targets and current policy mix, in conjunction with facilitating monitoring tools to assess current and future progress, as a key step to design effective decarbonisation strategies. It then provides a detailed comparison of several policy instruments across different assessment criteria, which indicates that no single instrument is clearly superior to all others. This highlights the need for developing decarbonisation strategies based on a wide policy mix consisting of three main components: 1) emission pricing policy instruments; 2) standards and regulations; 3) complementary policies to facilitate the reallocation of capital, labour and innovation towards low-carbon activities and to offset the adverse distributional effects of reducing emissions. However, there is no one-size-fits-all policy mix, as feasible policy choices depend on countries’ industrial structure, social preferences and political constraints. A robust and independent institutional framework, stakeholders engagement and credible communication campaigns are key to managing these constraints and ultimately enhancing public acceptance of climate mitigation policies. |
| Keywords: | climate change, emission pricing, green investments, green R&D and innovation, green standards and regulations, growth and inclusion, mitigation policies, political economy of climate policy |
| JEL: | H54 P48 Q42 Q52 Q54 Q55 Q58 |
| Date: | 2022–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaab:31-en&r= |
| By: | Georges Prat (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Remzi Uctum (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Using survey-based data we show that oil price expectations are not rational, implying that the ex-ante premium is a more relevant concept than the widely popular expost premium. We propose for the 3-and 12-month horizons a portfolio choice model with risky oil assets and a risk-free asset. At the maximized expected utility the risk premium is defined as the risk price times the expected oil return volatility. A state-space model, where the risk prices are represented as stochastic unobservable components and where expected volatilities depend on historical squared returns, is estimated using Kalman filtering. We find that the representative investor is risk seeking at short horizons and risk averse at longer horizons. We examine the economic factors driving risk prices whose signs are shown to be consistent with the predictions of the prospect theory. An upward sloped term structure of oil risk premia prevails in average over the period. |
| Keywords: | oil market,oil price expectations,ex-ante risk premium JEL classification : D81 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03508699&r= |
| By: | Luca Panzone (School of Natural and Environmental Science, Newcastle University; The Alan Turing Institute); Natasha Auch (The Alan Turing Institute); Daniel Zizzo (School of Economics, University of Queensland, Brisbane, Australia) |
| Abstract: | We use an incentive-compatible experimental online supermarket to test the role of commitment and badges in reducing the carbon footprint of grocery shopping. In the experiment, some participants had the opportunity to voluntarily commit to a low carbon footprint basket before their online grocery shopping; while the commitment was forced upon other participants. We also study the impact of an online badge as a soft reward for the achievement of a low carbon footprint basket. Participants from the general population shopped over two weeks, with the experimental stimuli only in week 2; and received their shopping baskets and any unspent budget. Results indicate that requesting a commitment prior to entering the store leads to a reduction in carbon footprint of 8-9%. The online badge led to non-significant reductions in carbon footprint. Commitment mechanisms, either forced or voluntary, appear effective in motivating an environmental goal and search for low-carbon options, particularly in those accepting the commitment. |
| Keywords: | sustainable consumption, commitment, field experiment, carbon footprint, food consumption. |
| JEL: | C54 C93 D12 D91 Q18 Q56 |
| Date: | 2022–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:652&r= |
| By: | Eftichios S. Sartzetakis (Department of Economics, University of Macedonia); Anastasios Xepapadeas (Department of International and European Economic Studies, Athens University of Economics and Busines); Athanasios Yannacopoulos (Department of Statistics, Athens University of Economics and Business) |
| Abstract: | Continuously increasing consumption of material goods drives current resource and environmental crises, including climate change and loss of biodiversity. Technology o¤ers solutions, the development and the adoption of which though is not at the speed required to address the crises. Therefore, demand side responses have to be triggered using policies with economists suggesting the use of price signals. Increases in fuel prices during the last decade in both Europe and North America though, have not yielded the expected reductions in the fuel economy. Furthermore, ambitious increases in fuel prices have resulted in considerable opposition, especially by low-income people. The present paper o¤ers an explanation for the reduced e¤ectiveness of environmental taxation by focusing on relatively high-income individuals whose consumption of highly polluting material goods is driven by motivations to improve their social status. Furthermore, the paper shows that complementing the tax with information provision aiming at moderating status seeking overconsumption improves social welfare. Decoupling consumption of highly polluting material goods from social status in individuals?well-being, through information campaigns and/or adver-tisement, could have a substantial environmental e¤ect directly and also indirectly by improving the e¤ectiveness of taxation. |
| Keywords: | status-seaking, replicator dynamics, information provision, environmental taxation |
| JEL: | Q53 Q58 D62 D82 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:mcd:mcddps:2022_01&r= |
| By: | Dzieliński, Michał (Stockholm Business School, Stockholm University); Eugster, Florian (Mistra Center for Sustainable Markets (Misum)); Sjöström, Emma (Mistra Center for Sustainable Markets (Misum)); Wagner, Alexander F. (University of Zurich, CEPR, ECGI, and Swiss Finance Institute) |
| Abstract: | Climate change is a major concern for many companies, but it has not historically featured much in earnings conference calls. We find a marked increase in climate talk on these calls in recent years. We also find that climate talk is negatively related to the change in CO2 emissions (especially Scope 2) in the year after the call, particularly in firms with high overall environmental and governance ratings. Conversely, investors react particularly negatively to climate talk when it comes from a firm with low levels of ESG performance or following poor earnings performance. Finally, a firm employs more climate talk when it is more material, when there is greater shareholder pressure or when it is better prepared for climate-related disclosure. Overall, these results suggest that investors and other stakeholders interested in corporate climate action should be paying attention to earnings conference calls as a source of useful information about companies’ broader stance on climate-related issues. |
| Keywords: | climate talk; earnings calls; sustainability; CO2 emissions; greenwashing |
| JEL: | D83 G14 G34 G41 Q54 |
| Date: | 2022–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hamisu:2022_006&r= |
| By: | Toby Melissa C. Monsod (School of Economics, University of the Philippines Diliman); Sara Jane Ahmed (School of Economics, University of the Philippines Diliman); Golda P. Hilario (School of Economics, University of the Philippines Diliman) |
| Abstract: | In its first Nationally Determined Contribution (NDC) to the Paris Agreement, the Philippines committed to a GHG emissions reduction/avoidance of 75 percent for the period 2020 to 2030, referenced against a projected business-as-usual cumulative emission for the same period. However, the numbers do not add up, critical sectors such as forestry, which is central to the country’s climate change response, are excluded, and government is unconditionally committed to just 4 percent of that target. This begs the question of how the NDC squares with the country’s high level policy clarity and urgency on climate action, including the requirement to infuse all development plans and policies with it. A resetting of the NDC may therefore be warranted so that both national imperatives for climate risk resilience and climate smart development and global mitigation requirements are better served: an NDC that is based on first principles, with programs and measures anchored on adaptation/resilience and driven by their impact sustainable development rather than by GHG emissions reductions per se. This is not the standard ‘decarbonization’ path but a path that recognizes that highly vulnerable countries with relatively small carbon footprints per capita like the Philippines are likely to do more for global efforts to reduce the extent of climate change and cope with its impacts if they build robust community ownership for climate action and leverage opportunities based on their own comparative advantages; one comparative advantage of the Philippines is the biodiversity of its marine and coastal resources. This approach also recognizes that climate change impacts will be dire even if global warming is successfully limited to 1.5 degrees. Thus adaptation and resilience are imperatives for all countries and national contributions that are organized to support these efforts will be vital. |
| Keywords: | Climate change; Climate policy; Development Policy; Emissions; Philippines; ASEAN |
| JEL: | Q54 Q58 O53 O21 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:phs:dpaper:202105&r= |
| By: | Lisa Taruttis (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen) |
| Abstract: | Dieser Projektbericht ist im Rahmen des Verbundprojektes EnStadt – QUARREE100: Resiliente, integrierte und systemdienliche Energieversorgungssysteme im städtischen Bestandsquartier unter vollständiger Integration erneuerbarer Energien – Reallabor Rüsdorfer Camp entstanden. |
| Keywords: | Hedonic Analysis, Real Estate, Housing market, Energy Efficiency |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:dui:wpaper:2201&r= |
| By: | Julia M. Puaschunder (The New School, Department of Economics, School of Public Engagement, New York, NY 10003, USA) |
| Abstract: | The climate change crisis has gained unprecedented urgency in the most recent decade. Overall, climate change has already led to and will continuously lead to irreversible tipping points and lock-ins that will degrade the common welfare. When taking a closer look at the macroeconomic growth prospects as measured in Gross Domestic Product (GDP), climate change gains and losses will be distributed fairly unequally throughout the world. A climate change winners and losers index generated the economic prospects under climate change around the world. The index attributed economic gain and loss prospects based on the medium temperature per country in relation to the optimum temperature for economic productivity and the GDP composition per country in order to determine how far countries are deviating from their optimum productivity levels on a time scale. As economic gains and losses from a warming earth are distributed unequally around the globe, ethical imperatives lead to the pledge to redistribute gains to losing territories in the quest for climate justice. Climate justice comprises fairness between countries but also over generations in a unique and unprecedented tax-and-bonds climate change gains and losses distribution strategy. Climate change winning countries are advised to use taxation to raise revenues to offset the losses incurred by climate change. Climate change losers could raise revenues by issuing bonds that have to be paid back by taxing future generations. Regarding taxation, within the winning countries, foremost the gaining GDP sectors should be taxed. Climate justice within a country should also pay tribute to the fact that low- and high-income households share the same burden proportional to their dispensable income, for instance enabled through a progressive carbon taxation. Those who caused climate change could be regulated to bear a higher cost through carbon tax in combination with retroactive billing through inheritance tax to map benefits from past wealth accumulation that potentially contributed to global warming. A novel policy recommendation for enacting climate justice entails diversified interest rate regimes for climate bonds repayment based on the country’s initial position on the climate change gains and losses index spectrum. Diversified repayment of bonds is a new method aimed at ensuring to share the burden but also the benefits of climate change within society in an economically efficient, legally equitable and practically feasible way. |
| Keywords: | Climate Change, Economics of the Environment, Environmental Justice, Environmental Governance, Green New Deal, Healthcare, Monetary Policy, Multiplier, Social Justice, Sustainability |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:smo:lpaper:0068&r= |
| By: | Eftichios Sartzetakis; Anastasios Xepapadeas; Athanasios Yannacopoulos |
| Abstract: | Continuously increasing consumption of material goods drives current resource and environmental crises, including climate change and loss of biodiversity. Technology offers solutions the development and the adoption of which though is not at the speed required to address the crises. Therefore, demand side responses have to be triggered and the most common economic suggestion is to use price signals. Increases in fuel prices during the last decade in both Europe and North America though, have not yielded the expected reductions in the fuel economy. Furthermore, ambitious increases in fuel prices have resulted in considerable opposition, especially by low-income people. The present paper offers an explanation for the reduced effectiveness of environmental taxation by focusing on relatively high-income individuals whose consumption of highly polluting material goods is driven by motivations to improve their social status. Furthermore, the paper shows that complementing the tax with information provision aiming at moderating status seeking overconsumption improves social welfare. Convincing people, through information campaigns and/or advertisement that consuming highly polluting material goods does not improve their social status could have a substantial effect which perfectly complements taxation, improving actually its effectiveness. |
| Keywords: | status-seaking, replicator dynamics, information provision, environmental taxation |
| JEL: | Q53 Q58 D62 D82 |
| Date: | 2022–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2207&r= |
| By: | Franck Lecocq (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); Alain Nadaï (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, CNRS - Centre National de la Recherche Scientifique); C. Cassen (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) |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03504158&r= |
| By: | Anders Dugstad; Kristine Grimsrud (Statistics Norway); Gorm Kipperberg; Henrik Lindhjem; Ståle Navrud |
| Abstract: | Economists have neglected place attachment as a potential explanation for people’s preferences for environmental goods. We conducted the first discrete choice experiment to assess the place attachment concept in the valuation of and response to the place-specific environmental impact from a proposed wind farm in Norway. Place attachment increases required compensation for accepting the wind farm, strengthens resistance, and leads to a higher propensity to systematically choose the status quo option of no wind farm in the discrete choice experiment. This finding suggests that the so-called “not-in-my-backyard” (NIMBY) effect should be recognized as a rational response when people place a high value on local environmental amenities, including place identity and a sense of place. |
| Keywords: | Place attachment; sense of place; NIMBY (not-in-my-backyard); discrete choice experiment; cultural ecosystem services; wind energy |
| JEL: | Q40 Q51 Q57 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:974&r= |
| By: | Olga Chiappinelli; Gyula Seres |
| Abstract: | We consider a Green Public Procurement setting where the procurer provides a bid discount to environment-friendly technologies to foster their use. We assume that, before the auction, firms may switch to green technology via a publicly observable costly investment. We show that investment acts as a signaling device. This mitigates the effect of incomplete information on firms’ costs, thereby triggering more competitive bidding, which results in lower prices for the procurer. Therefore, even a procurer with no preference toward green technology can find it optimal to use a discount. Our results challenge the common perception that Green Public Procurement always implies a trade-off between environmental performance and purchasing price. |
| Keywords: | Public Procurement; Environmental Policy; Auctions |
| JEL: | D44 H57 Q58 Q55 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1983&r= |
| By: | Giacomo Battiston; Gianmarco Daniele; Marco Le Moglie; Paolo Pinotti |
| Abstract: | We show that the War on Drugs launched by the Mexican President Felipe Calderón in 2007 pushed drug cartels into large-scale oil thefts. Municipalities that the presidential candidate’s party barely won at the local elections in 2007-2009 exhibit a larger increase in illegal oil taps over the following years, compared to municipalities in which the presidential candidate’s party barely lost the elections. Challenger cartels in the drug market leapfrog incumbent drug cartels when entering the new illegal activity, analogous to what is typically observed in legal markets. Since challengers and incumbents specialize in different criminal sectors, the expansion of challengers does not increase violence in municipalities traversed by oil pipelines. At the same time, the municipalities traversed by a pipeline witness a decrease in schooling rates. |
| Keywords: | Organized crime, War on Drugs, Oil thefts, Leapfrogging |
| JEL: | K42 L20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp22171&r= |
| By: | Phoebe Koundouri; Nikitas Pittis (University of Piraeus, Greece); Angelos Plataniotis |
| Abstract: | Achieving climate neutrality dictated by international agreements such as the Paris Agreement, the United Nations Agenda 2030 and the European Green Deal, requires the conscription of all parts of society. The business world and especially large enterprises have a leading role in this effort. Businesses can contribute to this effort, by establishing a reporting and operating framework according to specific Environmental, Societal, Goovernance (ESG) criteria. The interest of companies in the ESG framework has become more intense in the recent years, as they recognize that appart from an improved reputation, ESG criteria can add value to them and help to become more effective in their functioning. However, especially large European companies, are legally obligated by the Non-Financial Reporting Directive (NFRD - Directive 2014/95/EU), to disclose non-financial information on how they deal with social and environmental issues. In the literature, there are discussions on what extent a good ESG-performance affects a company's profitability, valuation, capital efficiency and risk. The purpose of this paper is to examine empirically whether a relationship between good ESG performance and the good financial condition of companies can be documented. For a sample of the top-50 European companies in terms of ESG performance (STOXX 28 Europe ESG Leaders 50 Index), covering a wide range of sectors, namely Automobile, Consumer Products, Energy, Financial Services, Manufacturing etc., first, we reviewed their reportings to see which ESG framework they use to monitor their performance. Next, we examined whether there is a pattern of better financial performance if compared to other large European corporations. Our results show that such a connection seem to exist at least for some specific parameters, while for others such a claim cannot be supported. |
| Keywords: | ESG, STOXX Europe, Financial Performance, Capital Structure, Profitability, Valuation |
| Date: | 2022–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2209&r= |
| By: | Michael Kilumelume; Bruno Morando; Carol Newman; John Rand |
| Abstract: | Extractive industries form an important part of the economy for many developing countries, but their impact on growth and welfare remains understudied. With global efforts to transition to net-zero carbon emissions in the coming decades, understanding the local impacts of the extractives sector is crucially important for regional economic development policy in the management of this transition. In this paper we use tax administrative data from South Africa to examine the local spillovers from mining activities, focusing on wages, firm profitability, and job creation. |
| Keywords: | Mining, South Africa, Spillovers, Firms, Profitability |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-10&r= |
| By: | Nicolas Berghmans (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Lola Vallejo (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Benoît Leguet (I4CE-Institute for Climate Economics); Erwann Kerrand (I4CE-Institute for Climate Economics); Andreas Eisl (CEE - Centre d'études européennes et de politique comparée - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, MaxPo - Max Planck Sciences Po Center on Coping with Instability in Market Societies - Max Planck Institute for the Study of Societies - Max-Planck-Gesellschaft - Sciences Po - Sciences Po, Institut Jacques Delors); Phuc-Vinh Nguyen (Institut Jacques Delors); Thomas Pellerin-Carlin (Institut Jacques Delors); Xavier Timbeau (OFCE - Observatoire français des conjonctures économiques - Sciences Po - Sciences Po) |
| Abstract: | Il reste moins de 30 ans pour atteindre la neutralité carbone. Cette transformation des économies française et européenne, à peine entamée, est historique. Essentielle pour éviter le chaos climatique, elle doit aussi intégrer d'autres enjeux environnementaux, dont la biodiversité et la pollution de l'air. Elle constitue aussi une opportunité pour moderniser nos industries, créer des emplois de qualité, lutter contre la pauvreté, renforcer la prospérité économique et affirmer notre indépendance politique et énergétique. Si de nombreux pays ont annoncé des objectifs de neutralité carbone en amont de la dernière Conférence internationale sur le climat (COP 26), il manque encore des actes concrets, en France comme ailleurs. Beaucoup de chemins sont possibles pour atteindre la neutralité, il faut les préciser, les clarifier et les proposer au débat public. On ne peut traiter les différentes facettes de la transition écologique séparément les unes des autres. Investissements publics comme privés, changements de modes de vie, reconfiguration des espaces urbains, nouveau pacte social, formation des travailleurs, innovations, modification des incitations économiques et production d'énergies nouvelles devront ainsi être appréhendés conjointement pour apporter une réponse systémique et relever le défi climatique. Certains chantiers sont déjà ouverts : 2 % du PIB Français sont déjà consacrés à des investissements favorables au climat, l'Union européenne déploie un Pacte vert, les rénovations des bâtiments, productions d'énergies renouvelables et de véhicules électriques se développent. La Convention citoyenne pour le climat a démontré que ce mode de démocratie participative permet d'aboutir à des propositions concrètes, partiellement reprises dans la loi Climat et Résilience promulguée en 2021. Le plan France Relance permet d'apporter 30 milliards d'euros pour la transition écologique, mais sur une période limitée à deux ans. France 2030 donne de la prévisibilité aux financements de certaines filières innovantes. Dans ce Policy Brief, nous recensons les éléments structurants pour lesquels nous attendons des propositions concrètes de chaque candidat et de chaque famille politique. Sur le climat, tout projet politique peut être proposé aux Français, mais chaque projet politique doit être concrétisé dans une programmation pluriannuelle des investissements publics. Car si l'investissement ne fait pas tout, il est le point nodal d'expression des choix politiques et permet de mieux juger, au-delà des discours, du contenu réel des propositions. |
| Date: | 2021–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03483383&r= |
| By: | Thilo K.G. Haverkamp (University of Kassel); Heinz Welsch (University of Oldenburg); Andreas Ziegler (University of Kassel) |
| Abstract: | Based on representative data for 1614 citizens in Germany, this paper empirically examines the relationship between different types of environmental protection activities and subjective well-being (SWB) in terms of life satisfaction by specifically considering the role of economic preferences for this relationship. With respect to pro-environmental behavior, we differentiate between stated non-climate environmental and climate protection activities as well as revealed climate protection activities, which are measured in an incentivized donation experiment and thus are more meaningful than stated climate protection activities. Our empirical analysis reveals that climate protection activities are more robustly and more strongly positively correlated with life satisfaction than non-climate environmental protection activities. Furthermore, not only stated climate protection activities, but also revealed climate protection activities are significantly positively correlated with life satisfaction. These results suggest that climate protection activities lead to stronger warm glow feelings and reputation gains than non-climate environmental protection activities. Our empirical analysis additionally shows that economic preferences play an important role since especially patience and trust, but also risk-taking preferences and (less robust) altruism are significantly positively correlated with life satisfaction. In particular, economic preferences are also relevant for the relationship between pro-environmental behavior and life satisfaction. When economic preferences are included in the econometric analysis, the estimated correlations between climate protection activities and life satisfaction become weaker and the estimated correlation between non-climate environmental protection activities and life satisfaction even becomes insignificant. These results strongly suggest omitted variable biases in cross-sectional econometric analyses of the relationship between pro-environmental behavior and SWB when economic preferences are not included as control variables. |
| Keywords: | Subjective well-being; life satisfaction; pro-environmental behavior; incentivized donation experiment; economic preferences |
| JEL: | I31 Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202204&r= |
| By: | Clulow, Z.; Reiner, D. M. |
| Abstract: | Distrust in science has been linked to scepticism over both vaccines and climate change. We analyse the results of nationally representative online surveys administered in eight key countries critical to global efforts to mitigate climate change and COVID-19 (Australia, Brazil, China, India, Japan, South Africa, the UK and US). Consistent with previous studies, we find distrust in science is an important explanatory variable for the larger majority of sceptics, those who are sceptical of one or the other issue but not both, across the countries examined. However, the association is significantly weaker among the segment of hardcore persistent sceptics who are both climate sceptics and antivaxxers, instead we find that these individuals, who fit with the typical sceptic profile, are driven by an underlying distrust of elite institutions rather than a specific distrust of scientists. Our results imply that different communications strategies are needed for different types of sceptics. |
| Keywords: | climate scepticism, anti-vaccine, public perceptions, trust, COVID-19 |
| JEL: | I12 I18 Q54 Q58 |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2209&r= |
| By: | Julia M. Puaschunder (The New School, Department of Economics, School of Public Engagement, New York) |
| Abstract: | The Green New Deal (GND) is a governmental strategy to strengthen the United States economy and foster inclusive growth. The GND is targeted at sharing economic growth benefits more equally within society. How to align economic interest with justice and fairness notions is the question of our times when considering the massive challenges faced in terms of environmental challenges, healthcare demands and social justice pledges. First, this paper will outline what the GND is, how the GND is implemented and why it matters in its multiple implementation facets and international angles. Second, the Green New Deal will be presented as a possibility to make the world and society more equitable in the domains of environmental justice, access to affordable healthcare and social justice excellence. Ethical imperatives and equity mandates lead the economic rational behind redistribution in the GND as social peace, health and favorable environmental conditions are prerequisites for productivity. The GND offers hope in making the world and society but also overlapping generations more equitable and thus to bestow peace within society, around the world and over time. In answering the question if the GND is equitable, one has to acknowledge that the GND is a fairly novel phenomenon with international variations and diverse implementation strategies. |
| Keywords: | Access to Affordable Healthcare, Climate Change, Economics of the Environment, Environmental Justice, Environmental Governance, Green New Deal, Healthcare, Monetary Policy, Multiplier, Social Justice, Sustainability |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:smo:lpaper:0051&r= |
| By: | Nurdaulet Abilov (NAC Analytica, Nazarbayev University) |
| Abstract: | We extend the literature on the role of uncertainty shocks in small open economies using a dynamic stochastic general equilibrium (DSGE) model with stochastic volatility for the economy of Kazakhstan. We build a small-scale DSGE model for Kazakhstan with non-linear time-varying volatility of shock processes. Due to the inherent non-linearity in the model we estimate the parameters of the volatility processes using the Particle filter, and then estimate structural parameters of the model via simulated method of moments (SMM) |
| Keywords: | DSGE model; Oil price uncertainty; Particle filter; Simulated method of moments; Kazakhstan. |
| JEL: | E20 E32 E43 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ajx:wpaper:16&r= |
| By: | Donatella Gatti (CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UP - Université de Paris - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Date: | 2022–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-03534136&r= |