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on Energy Economics |
| By: | Mbiankeu Nguea, Stéphane; KAGUENDO, Ulrich Vianney Elisée |
| Abstract: | Despite the advancements towards Sustainable Development Goal 7, access to electricity in Africa is still lagging far behind the goal. In this study, we employ a panel data covering 36 African countries from 2000 to 2017 to investigate the effects of FDI, remittances and foreign aid on access to electricity. We use a dynamic empirical model based on system GMM to control for unobserved heterogeneity and potential endogeneity of the explanatory variables. The results show that FDI and remittances matter for increasing access to electricity. Also, foreign aid reduces access to electricity. We also find that remittances reduce urban-rural disparities in access to electricity, while FDI and foreign aid increase disparities. Finally, these results remain globally robust when we perform sub-regional analyses. |
| Keywords: | FDI, Remittances, Foreign aid, Access to electricity, System GMM, Africa |
| JEL: | F21 F24 F35 Q41 |
| Date: | 2022–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111604&r= |
| By: | Yannick Perez (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay); Wale Arowolo (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03522048&r= |
| By: | Rodier, Caroline; Chai, Huajun; Kaddoura, Ihab |
| Abstract: | Studies show that automated vehicles are likely to increase vehicle travel, resulting in more congestion and greenhouse gas emissions (GHGs). Pricing policies such as increasing the cost of driving and reducing the cost of alternative travel modes could lessen the negative impacts of automated vehicle deployment, although it is unclear to what extent. Cities located in the Westside Cities Council of Governments planning area in western Los Angeles County could be candidates for early deployment of automated vehicles because of their high travel volumes, well-maintained roads, and temperate weather conditions. Los Angeles County also faces high levels of poverty. Thus, the Westside Cities area presents an important opportunity to study how automated vehicles and associated pricing policies might affect congestion, vehicle miles traveled (VMT), and GHGs, and whether they might improve mobility for marginalized populations. Researchers at the University of California, Davis and the Technical University of Berlin evaluated these questions by simulating three scenarios in the Westside Cities area using an open-source, dynamic, agent-based travel model called MATSim. The researchers then calculated the benefits of each scenario compared to the base case for various income groups, considering monetary travel costs and the value of travel time for each income group. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Autonomous vehicles, Case studies, Equity (Justice), Greenhouse gases, Modal shift, Taxi services Geographic Terms: Los Angeles (California) |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt1jr721k4&r= |
| By: | Jarvis, Stephen |
| Abstract: | There are longstanding debates about the differences between generations. This includes claims that Millennials have fundamentally different preferences for driving and vehicle ownership when compared to prior generations. Using data on the United Kingdom I do indeed find large observed differences in driving habits and vehicle ownership between Millennials and prior generations. However, once certain confounding factors are controlled for these differences largely disappear. These results confirm findings from related work that looked at the United States, indicating that generational trends in driving habits are likely a fairly general phenomenon. |
| Keywords: | vehicle ownership; driving; generational changes |
| JEL: | L91 R22 D12 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113646&r= |
| By: | Jarvis, Stephen |
| Abstract: | Large infrastructure projects can have important social benefits, but also prompt strong local opposition. This is often attributed to NIMBY (Not In My Backyard) attitudes. I study the economic costs of NIMBYism and local planning restrictions by looking at renewable energy projects. Using hedonic methods I find that wind projects can impose significant external local costs, while solar projects do not. I then show that planning officials are particularly sensitive to local costs in their area. The resulting misallocation of investment may have increased wind power deployment costs by 10-29%. I conclude by examining compensation payments as a policy solution. |
| JEL: | Q42 R11 Q51 Q31 |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113653&r= |
| By: | Kazeem Bello Ajide (University of Lagos, Nigeria); Ekundayo Peter Mesagan (Pan Atlantic University, Lagos, Nigeria) |
| Abstract: | Environmental sustainability and climatic change mitigation seem central in the fight against global warming and continuous human sustenance in the 21st century. However, non-renewable and renewable consumption energies lie at the core of these pollution concerns, particularly among the G20 economies that are top pollution emitters in the world. Unlike other mediators in energy-pollution nexus, capital investment has been argued to ameliorate or amplify the relationship. To this end, the study specifically sets out to unravel the mediating role of capital investment in energy-pollution link together with other pollution confounders including trade openness, foreign direct investment and energy use for G20 economies over the period 1990-2017. Using the pooled mean group estimator, the study accounts for both cross-sectional dependence and heterogeneity among the countries. They key findings show that renewable energy to negatively impact carbon emissions in both the short- and long-run, while non-renewable energy positively having a reverse impact. In addition, the results show that capital investment as lowering pollution in the short-run but increases it in the long-run. Lastly, on interacting capital investment with renewable energy, pollution is found to reduce to pollution in both short- and long-run, while its interaction with non-renewable energy expands pollution in both short- and long-run. On the policy front, since capital investment provides an important channel to reduce pollution in G20 nations, it is therefore recommended that if energy consumption is to work through the capital investment channel to lower pollution in the G20, the proportion of renewable energy must increase relative to non-renewable energy in their energy mix. |
| Keywords: | Capital Investment; Renewable Energy; Non-renewable Energy; Carbon Emissions |
| JEL: | Q41 Q42 Q53 F23 O50 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/017&r= |
| By: | Erwan Gautier; Magali Marx; Paul Vertier |
| Abstract: | Using several millions of daily prices collected over the period 2007-2018 in France, we investigate how gasoline retail prices respond to a common shock on marginal cost (i.e. the wholesale gasoline price quoted on the Rotterdam market). We find that the pass-through is complete: a 1% change in Rotterdam price translates to a change in retail price of 0.8%, in line with the share of the wholesale gasoline in total costs. The adjustment is gradual: the full pass through takes about 3 weeks. In a broad class of sticky price models, the ratio of the kurtosis over the frequency of price changes is shown to be a sufficient statistic for the cumulative impulse response of prices (CIRP) to a nominal shock. We provide evidence that the sufficient statistic prediction holds when we look at how gasoline prices respond to a common cost shock. Relating, at the gas station level, the CIRP to moments of the price change distribution, we find that the CIRP correlates with the ratio of kurtosis over frequency, but also with both frequency and kurtosis taken separately. The sign and the magnitude of the correlations are fully in line with theoretical predictions. We also show that other moments do not correlate with CIRP as robustly as the frequency and the kurtosis. |
| Keywords: | Price Rigidity, Gasoline, Sufficient Statistic |
| JEL: | E31 D43 L11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:861&r= |
| By: | Andersen, Jørgen Juel; Nordvik, Frode Martin; Tesei, Andrea |
| Abstract: | We reconsider the relationship between oil and conflict, focusing on the location of oil resources. In a panel of 132 countries over the period 1962-2009, we show that oil windfalls escalate conflict in onshore-rich countries, while they de-escalate conflict in offshore-rich countries. We use a model to illustrate how these opposite effects can be explained by a fighting capacity mechanism, whereby the government can use offshore oil income to increase its fighting capacity, while onshore oil may be looted by oppositional groups to finance a rebellion. We provide empirical evidence supporting this interpretation: we find that oil price windfalls increase both the number and strength of active rebel groups in onshore-rich countries, while they strengthen the government in offshore-rich ones. |
| Keywords: | conflict; natural resources |
| JEL: | N0 R14 J01 |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113703&r= |
| By: | Hendrik Hakenes; Eva Schliephake |
| Abstract: | To reduce a negative externality, socially responsible households can invest respon- sibly (SRI), consume responsibly (SRC), or do both. Which is better? In a closed microeconomic model with intertwined product and capital markets, we analyze how responsible households should use SRI and SRC to maximize their impact. Both strategies reduce the externality as long as investors are risk-averse and the products have no perfect substitutes. Responsible households gain the highest impact when using SRC in equal proportion to SRI. A mere focus on SRC is never efficient. SRI plays a role in any green strategy. The financial performance of green investments is determined by the responsible households' mix between SRI and SRC. |
| Keywords: | Socially responsible investment (SRI), ethical investment, socially responsible consumption (SRC), sustainable investment, sustainable consumption, green investment, divestment, ESG, SPI |
| JEL: | D16 G30 G23 D62 D64 M14 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2022_330&r= |
| By: | Belloc, Ignacio; Molina, José Alberto |
| Abstract: | This paper investigates greenhouse gas emissions convergence among twenty Latin American countries, for the period 1970 to 2015. To that end, we use the Phillips-Sul methodology to examine whether these countries have followed an absolute convergence process or, whether there has been a club convergence process. Our results offer important insights into the greenhouse gas emissions catch-up exhibited by several countries, and do not support the hypothesis that all countries of the Latin American region, taken together, converge to a single equilibrium state in greenhouse gas emissions intensity. We find strong evidence of subgroups that converge to different steady states. An iterative testing procedure reveals the existence of different patterns of behavior and shows that such emissions are not uniform across these countries. We also identify the forces underlying the creation of clubs and the likelihood that any given country will be a member of any convergence club. Estimates from an ordered logit model reveal that economic structure, the unemployment rate, population density, and per-capita income play a crucial role in determining the formation of convergence clubs. |
| Keywords: | Greenhouse gas emissions,Convergence analysis,global climate policy,Latin America |
| JEL: | Q50 Q01 O54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1037&r= |
| By: | Casey, Gregory (Williams College); Fried, Stephie (Arizona State University); Gibson, Matthew (Williams College) |
| Abstract: | Existing climate-economy models use aggregate damage functions to model the effects of climate change. This approach assumes climate change has equal impacts on the productivity of firms that produce consumption and investment goods or services. We show the split between damage to consumption and investment productivity matters for the dynamic consequences of climate change. Drawing on the structural transformation literature, we develop a framework that incorporates heterogeneous climate damages. When investment is more vulnerable to climate, we find short-run consumption losses will be smaller than leading models with aggregate damage functions suggest, but long-run consumption losses will be larger. We quantify these effects for the climate damage from heat stress and find that accounting for heterogeneous damages increases the welfare cost of climate change by approximately 4 to 24 percent, depending on the discount factor. |
| Keywords: | climate change, structural transformation, growth |
| JEL: | Q56 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp14974&r= |
| By: | Aliénor Cameron (Climate Economics Chair, Université Paris-Nanterre & EconomiX-CNRS); Marc Baudry (Climate Economics Chair, Université Paris-Nanterre & EconomiX-CNRS) |
| Abstract: | On 14 July 2021, the European Commission formally adopted a proposal for a Carbon Border Adjustment Mechanism to mitigate the risk of carbon leakage caused by its increasingly ambitious environmental policies. There is a gap between the ways in which this issue is discussed in political spheres and the evidence provided by economic literature on it. The aim of this paper is to bridge this gap by presenting the context and policy debate surrounding carbon leakage and CBAs in the EU, reviewing the state of the economic literature on this topic, and discussing further research that is necessary to answer remaining policy concerns and unresolved research questions. |
| Keywords: | climate policy, carbon border adjustments, carbon leakage, , |
| JEL: | H23 L51 O33 Q58 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:fae:ppaper:2022.01&r= |
| By: | Isis Durrmeyer (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | I quantify the welfare and environmental gains and losses from a policy establishing an environmental tax/subsidy for new cars in France in 2008. I estimate a structural model of demand and supply that features heterogeneity in consumer preferences to go beyond the average policy effects and analyse distributional aspects. The policy reduces average carbon emissions by 1.6% at the cost of additional emissions of local pollutants. The regulation favours middle-income individuals but has redistributive effects when combined with a tax that is proportional to income. Moreover, local pollutant emissions increase least in poor and rural areas, suggesting another redistribution channel. |
| Date: | 2021–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03514846&r= |
| By: | David Ardia; Keven Bluteau; Thien Duy Tran |
| Abstract: | We explore the realized alpha-performance heterogeneity in green and brown stocks' universes using the peer performance ratios of Ardia and Boudt (2018). Focusing on S&P 500 index firms over 2014-2020 and defining peer groups in terms of firms' greenhouse gas emission levels, we find that, on average, about 20% of the stocks differentiate themselves from their peers in terms of future performance. We see a much higher time-variation in this opportunity set within brown stocks. Furthermore, the performance heterogeneity has decreased over time, especially for green stocks, implying that it is now more difficult for investment managers to deploy their skills when choosing among low-GHG intensity stocks. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2201.05709&r= |
| By: | Karel Janda; Ladislav Kristoufek; Binyi Zhang |
| Abstract: | Objective of this paper is to empirically investigate the dynamic connectedness between oil prices and stock returns of clean energy related and technology companies in China and U.S. financial markets. Three different multivariate Generalised Autoregression Conditional Heteroscedasticity (VAR-MGARCH) model specifications are used to investigate the return and volatility spillovers among series. By comparing these three models, we find that the VAR(1)-DCC(1,1) model with the skewed Student t distribution fits the data the best. The results of DCC estimation reveal that, on average, a $1 long position in Chinese clean energy companies in the Chinese financial market can be hedged for 18 cents with a short position in clean energy index in the U.S market. Our empirical findings provide investors and policymakers with the systematic understanding of spillover effects between China and U.S. clean energy stock markets. |
| Keywords: | Clean energy, Oil, Technology, Stock prices, VAR-MGARCH |
| JEL: | G11 Q20 |
| Date: | 2021–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:prg:jnlwps:v:4:y:2022:id:4.001&r= |
| By: | Guo, Shu; Zhang, ZhongXiang |
| Abstract: | With the appearance of “wellbeing stagnation”, the Chinese government has gradually realized the negative impact of increasingly severe environmental problem on people’s wellbeing, and has then has formulated a series of environmental policies. Based on the balanced panel data from2014 to 2018 from China Family Panel Studies (CFPS)and by means of the fixed effects model, we analyze the relationships between heterogeneous environmental regulations (ERs) and subjective wellbeing (SWB) from the perspective of diligent governance. Our results show that command-control environmental regulation (CER) and voluntary environmental regulation (VER)have positive effects on SWB, but there existthe heterogeneity effects in the links between ERs and SWB. Vulnerable populations, including those with rural hukou, less educated, have paidmore attention to VER, whereas the view of other groups is the opposite. Similarly, the people with low incomes or living in economically underdeveloped areas or western region, are sensitive to VER, while the others only pay attention to CER.The SWB of those with better health can be enhanced by CER, and the SWB of those with poor health are unaffected by CER and VER.Further channel analysis illustrates that CER can improve SWB by increasing people’s evaluation of the government, while VER cannot. Our results imply that the people would place more weight on environmental governance as their income rises, and can help the government institute more flexible environmental policies to improve people’s wellbeing. |
| Keywords: | Consumer/Household Economics, Environmental Economics and Policy |
| Date: | 2021–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:317125&r= |
| By: | HIGASHIDA Keisaku; ISHIKAWA Jota; TARUI Nori |
| Abstract: | This study examines the effects of carbon pricing of greenhouse gas (GHG) emissions from international transport, production, and consumption of traded goods by modeling the international transport sector explicitly. Endogenous international transport explains the novel mechanism of carbon leakage across borders and sectors. The effectiveness of carbon pricing depends on whether the backhaul problem (i.e., the imbalance of shipping volume in outgoing and incoming routes) is present. If the backhaul problem is absent, any carbon pricing is effective because the global GHG emissions are necessarily reduced. With the backhaul problem, carbon pricing in goods consumption remains effective, whereas carbon pricing in goods production results in cross-border carbon leakage. However, endogenous transport costs mitigate this leakage. The opportunity of foreign direct investment also affects carbon pricing effectiveness. In particular, carbon pricing in the transport sector may not affect GHG emissions at all. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:21102&r= |
| By: | Zhu, Erpu; Campbell, Loyle; Hafner, Manfred; Lu, Xinqing; Noussan, Michel; Raimondi, Pier Paolo |
| Abstract: | This paper compares different just transition pathways in China, the European Union and the United States of America by comparing the current state of the coal sector and just transition policies away from coal. How can social justice in the energy transition be achieved under different models of energy governance? Since these three blocs have only made some progress on just transition policies and legislations for workers and communities impacted by the coal phase down or phase out in recent years, there have not been many studies comparing them to each other. The analysis in this paper shows that while all three blocs work towards ensuring the integration of coal workers and coal communities into the clean economy in the process of coal reduction, their approaches to achieving a just transition differ in terms of policy frameworks, financing resources, specific measures and public participation. This paper is part of a series of FEEM working papers of comparison studies of China, the EU and the US in the field of climate and energy. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy |
| Date: | 2021–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:317747&r= |
| By: | 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: | Various tradable instruments have been implemented for climate change mitigation: emission trading systems, tradable energy-efficiency obligations, and tradable renewable energy quotas. Their track record has been disappointing so far: almost every emission trading has suffered from over-allocation which has undermined its effectiveness; tradable energy-efficiency obligations seem to have mostly co-financed investments that would have taken place anyway; tradable renewable energy quotas suffer from several shortcomings compared to alternative support systems, i.e., feed-in tariffs and premiums. I discuss the reasons for these failures (especially too superficial a reading of the work of researchers by policy makers) and ways to improve the situation (including encouraging systematic syntheses of academic work). |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03495904&r= |
| By: | Campbell, Loyle; Hafner, Manfred; Lu, Xinqing; Noussan, Michel; Raimondi, Pier Paolo; Zhu, Erpu |
| Abstract: | This paper compares how the pursuit of self-sufficient Lithium-ion battery production by the three main geo-economic players (China, the European Union, and the United States) is unfolding by looking at the electrification of the transport sector. The analysis of this paper uses the concept of energy security and the 4 As outlined by the Asia Pacific Energy Research Center (2007) to outline the availability, accessibility, affordability, and acceptability of Lithium-ion (Li-Ion) batteries for each respective actor. This paper aims to compare the dynamics of each geoeconomic player’s EV deployment along these four indicators. Most work in this field assesses the battery strategies of these three geo-economic players individually or focuses on EV deployment from a purely economics perspective. In contrast, this paper attempts to bridge this gap through the framework of energy security to compare how each of the three player’s battery strategy connects to broader EV deployment. Adopting this framework allows us to highlight how China’s strong industrial policies and generous incentives contrast to the government multilateral alliance-building done in the European Union and the overwhelmingly dominant role of private actors found in the United States. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy |
| Date: | 2021–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:317746&r= |
| By: | Nelson Sobrinho; Matteo Ruzzante |
| Abstract: | This paper investigates the dynamic impact of natural resource discoveries on government debt sustainability. We use a ‘natural experiment’ framework in which the timing of discoveries is treated as an exogenous source of within-country variation. We combine data on government debt, fiscal stress and debt distress episodes on a large panel of countries over 1970-2012, with a global repository of giant oil, gas, and mineral discoveries. We find strong and robust evidence of a ‘fiscal presource curse’, i.e., natural resources can jeopardize fiscal sustainability even before ‘the first drop of oil is pumped’. Specifically, we find that giant discoveries, mostly of oil and gas, lead to permanently higher government debt and, eventually, debt distress episodes, specially in countries with weaker political institutions and governance. This evidence suggest that the curse can be mitigated and even prevented by pursuing prudent fiscal policies and borrowing strategies, strengthening fiscal governance, and implementing transparent and robust fiscal frameworks for resource management. |
| Keywords: | Natural resources; Resource curse; Oil; Mines; Debt sustainability; Fiscal policy; Political institutions |
| Date: | 2022–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/010&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:wpaper:hal-03534136&r= |
| By: | Talevi, Marta; Pattanayak, Subhrendu K.; Das, Ipsita; Lewis, Jessica J.; Singha, Ashok K. |
| Abstract: | Biogas has the potential to satisfy the clean energy needs of millions of households in under-served and energy-poor rural areas, while reducing both private and social costs linked to (i) fuels for household cooking, (ii) fertilizers, (iii) pressure on forests, and (iv) emissions (e.g., PM 2.5 and methane) that damage both household health and global climate. While the literature has focused on identifying these costs, less attention has been paid to household preferences for biogas systems — specifically what attributes are popular with which types of households. We conduct a discrete choice experiment with 503 households in rural Odisha, India, to better characterize preferences for different attributes (smoke reduction, fuel efficiency, and maintenance) and for different cooking technologies (biogas and an improved biomass cookstove). We find that on average households value smoke reduction and fuel efficiency. Willingness to pay (WTP) a premium for the improved biomass cookstove is low, while willingness to pay a premium for biogas is high. Nonetheless, WTP varies by the type of previous experience with biogas (e.g., good or bad experience) and with time and risk preferences of households. While risk-averse and impatient respondents have lower WTP for the improved cookstoves, previous experience with biogas attenuates this gap. These findings suggest that biogas uptake and diffusion could be improved by complementing existing subsidies with technology trials, good quality products, maintenance, and customer services to reduce uncertainty. |
| Keywords: | energy poverty; Biogas; improved cookstoves; air pollution; firewood; discrete choice experiment; Odisha; ES/J500070/1; UKRI block grant |
| JEL: | I30 Q20 Q40 |
| Date: | 2022–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113454&r= |
| By: | Stephen J. DeCanio; Charles F. Manski; Alan H. Sanstad |
| Abstract: | Integrated assessment models have become the primary tools for comparing climate policies that seek to reduce greenhouse gas emissions. Policy comparisons have often been performed by considering a planner who seeks to make optimal trade-offs between the costs of carbon abatement and the economic damages from climate change. The planning problem has been formalized as one of optimal control, the objective being to minimize the total costs of abatement and damages over a time horizon. Studying climate policy as a control problem presumes that a planner knows enough to make optimization feasible, but physical and economic uncertainties abound. Manski, Sanstad, and DeCanio (2021) proposed and studied use of the minimax-regret (MMR) decision criterion to account for deep uncertainty in climate modeling. Here we study choice of climate policy that minimizes maximum regret with deep uncertainty regarding both the correct climate model and the appropriate time discount rate to use in intergenerational assessment of policy consequences. The analysis specifies a range of discount rates to express both empirical and normative uncertainty about the appropriate rate. The findings regarding climate policy are novel and informative. The MMR analysis points to use of a relatively low discount rate of 0.02 for climate policy. The MMR decision rule keeps the maximum future temperature increase below 2°C above the 1900-10 level for most of the parameter values used to weight costs and damages. |
| JEL: | Q54 Q58 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:29716&r= |
| By: | Park, Youngseok (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | The United Nations Security Council adopted eight resolutions from 2012 to 2019, in condemning threatening actions on the part of North Korea, such as conducting ballistic missiles and nuclear weapons tests. I examine the efficacy of sanctions against North Korea using satellite nighttime lights data. The political system of North Korea is defined as suryong dictatorship, in which the dictator (supreme leader or suryong) holds absolute power to dictate the country’s resources. Suryong allocates large enough fraction of the country’s resources to the selectorate for supporting his political power. I empirically test the theoretical hypothesis - the ruler will transfer a greater fraction of the country’s resources to the selectorate as sanctions intensify - using satellite nighttime lights data. I find that an additional sanction is associated with an increase in the difference in nighttime lights between the capital city, Pyongyang, and the rest of the country by about 0.4 percent. Manufacturing cities, mining areas, the Chinese border region, and Sinuiju become relatively brighter with an additional sanctions event. Another notable finding is the estimate on the interaction term with the nuclear development facilities areas, which suggests that the ruler diverts resources and electricity from nuclear development activities to other sectors when sanctions increase. |
| Keywords: | North Korea; economic sanction; satellite nighttime light; dictatorship; nuclear development |
| Date: | 2022–01–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2022_003&r= |
| By: | Ekundayo Peter Mesagan (Pan Atlantic University, Lagos, Nigeria.); Kazeem Bello Ajide (University of Lagos, Nigeria); Xuan Vinh Vo (University of Economics Ho Chi Minh City, Vietnam) |
| Abstract: | This scientific enquiry examines the role of capital investment in the energy-pollution model in SANEM countries. The methodology is based on the Pooled Mean Group (PMG), which is appropriate for a heterogeneous panel. Findings reveal that energy use negatively impacts CO2 emissions in Algeria, South Africa, Morocco, and the panel, in the short-run; however, it positively impacts CO2pollution in Nigeria, Egypt, and the panel, in the long-run. Again, investment exerts a positive effect on CO2 in South Africa and Algeria, whereas it is negative in Nigeria, Egypt, and Morocco. Capital investment also expands short-run pollution in the panel, but it reduces long-run pollution. Lastly, the energy-investment interaction reduces the panel’s CO2pollution in the short-run and long-run, as well as, in Morocco, Egypt, Nigeria, and South Africa, except in Algeria. Thus, we conclude that capital investment is crucial in the energy-pollution nexus and suggest cooperation in attracting low-carbon emitting investments to the region. |
| Keywords: | Capital Investment; Carbon Emissions; Energy Use; Energy Policy; Africa |
| JEL: | Q32 Q48 Q53 F23 O55 |
| Date: | 2021–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:21/101&r= |
| By: | Setyawan, Dhani |
| Abstract: | Indonesia's transport sector has experienced rapid growth that has caused excessive fossil fuel energy consumption. Over 2000 to 2016 total final energy consumption in Indonesia’s transport sector has grown by 10% per annum so that transport now provides a large and rapidly growing component of total energy use. This study analyzes the specific characteristics of energy intensity in the transportation sector in Indonesia from 2000 to 2016 by employing a multiplicative Log Mean Divisia Index-II. The passenger transport sector in Indonesia, including the four modes of road, rail, water and air is examined in this study. Overall, the decline in energy intensity in passenger transport is attributed to the intensity effect. In passenger transport, the improvement of intensity effect was found to have significantly reduced the overall aggregate energy intensity, while the change in structural effect was found to have a relatively small reduction in the aggregate energy intensity. |
| Keywords: | energy efficiency, passenger transportation, energy intensity, Indonesia |
| JEL: | N7 |
| Date: | 2020–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106114&r= |
| By: | Fedesarrollo |
| Abstract: | Un libro que llega en el mejor momento, cuando la recuperación económica se convierte en un tema central del debate público. Para conmemorar sus cincuenta años, Fedesarrollo reunió a algunos de los mejores investigadores de la entidad en un solo libro. El objetivo: lograr el diagnóstico más completo de la economía colombiana del presente y hacer proyecciones para los próximos diez años. Crecimiento, demografía, pobreza, empleo, educación, infraestructura, energía, sostenibilidad e instituciones son los nueve capítulos que componen este análisis de largo alcance. |
| Keywords: | Economía Colombiana, Crecimiento Económico, Productividad, Demografía, Tendencias Demográficas, Pobreza, Distribución del Ingreso, Mercado Laboral, Empleo, Educación, Cobertura de la Educación, Deserción Escolar, Infraestructura, Tecnologías de la Información y la Comunicación, TIC, Economía de la Infraestructura, Electricidad, Gas Natural, Transporte, Energía, Transición Energética, Sector Energético, Medio Ambiente, Recursos Energéticos, Fortalecimiento Institucional, COVID-19, Política Pública, Política Social, Política Fiscal, Proyecciones Económicas, Reactivación Económica, Colombia |
| JEL: | O54 O47 D24 J10 J11 I32 D33 J40 E24 J21 I21 O18 L94 L95 L91 O13 Q43 Q50 Q20 L38 |
| Date: | 2021–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:col:000516:019944&r= |
| By: | Rakhmindyarto, Rakhmindyarto; Setyawan, Dhani |
| Abstract: | Indonesia is the 6th largest carbon emitter in the world. It is also one of the most vulnerable countries to climate change, with a population of 250 million people spread across thousands of islands and low-lying coastal areas. This paper investigates the political challenges to introduce a carbon tax as a climate policy option in Indonesia. It is based on the analysis of 29 in�depth elite interviews with key Indonesian stakeholders. It fnds that, while political elites seem, in principle, to be open to the idea of a carbon tax, they are also cognisant of the impact of corruption challenges in the Indonesia context. Meanwhile, the business community opposes a carbon tax and fears the introduction of additional costs that may infuence productivity and competitiveness. Non-government organisations, however, support its immediate introduction. Overall, this work makes an important contribution to the ever-growing academic debate on the introduction of carbon prices to assist carbon mitiga�tion eforts. It also has important ramifcations in terms of transparency, accountability and political pluralism in Indonesia. |
| Keywords: | Climate change · Climate policy · Carbon prices |
| JEL: | H2 H23 |
| Date: | 2020–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111586&r= |
| By: | Palizha AIREBULE; Haitao CHENG; ISHIKAWA Jota |
| Abstract: | We explore the carbon emissions of the world's five highest carbon emitters by applying the shared responsibility (SR) criterion, under which both producers and consumers share the responsibility for emissions. Using the SR method based on the value-added approach, we can investigate carbon emissions at both national and sectoral levels. Between 2002–2014, carbon emissions in China and India grew dramatically. SR increased by 157% in China and 116% in India. The main driving force of China's carbon emissions was the rapid growth of its exports, and the main driver of India's carbon emissions was its high carbon-intensive production technologies. Although carbon emissions had a declining trend in the USA and Japan, it could have resulted from cross-border carbon leakage. More than 40% of the five countries' national carbon emissions under SR were attributed to "electricity, gas, steam and air conditioning supply." This overwhelming share was attributable to their large amounts of production and high carbon emission intensity. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:21099&r= |
| By: | Michael Gilraine; Angela Zheng |
| Abstract: | We combine satellite-based pollution data and test scores from over 10,000 U.S. school districts to estimate the relationship between air pollution and test scores. To deal with potential endogeneity we instrument for air quality using (i) year-to-year coal production variation and (ii) a shift-share instrument that interacts fuel shares used for nearby power production with national growth rates. We find that each one-unit increase in particulate pollution reduces test scores by 0.02 standard deviations. Our findings indicate that declines in particulate pollution exposure raised test scores and reduced the black-white test score gap by 0.06 and 0.01 standard deviations, respectively. |
| Keywords: | air pollution; education; coal |
| JEL: | Q53 I14 I24 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:deptwp:2022-02&r= |
| By: | Irina Safitri Zen (International Islamic University Malaysia [Kuala Lumpur]); Abul Quasem Al-Amin (University of Waterloo [Waterloo]); Md. Mahmudul Alam (UUM - Universiti Utara Malaysia); Brent Doberstein (University of Waterloo [Waterloo]) |
| Abstract: | The carbon footprint of households is a significant contribution to global greenhouse gas emissions, accounting for 24% of total emissions. As a result, it is critical to quantify a household's carbon footprint in order to reduce it over time. One of the best ways to measure carbon emitted from various sectors of the economy, including household daily activities, is to calculate a country's carbon footprint (CF). This study statistically examined the magnitude of households' carbon footprints and their relationships with household daily activities and certain socio-economic demographic variables in Malaysia. Results revealed that the average household carbon footprint amounted to 11.76 t-CO2. The average also showed that the primary carbon footprint, 7.02 t-CO2 or 59.69% was higher compared to the secondary carbon footprint which was 4.73 t- CO2 or 40.22% and assessment revealed significant differences among household types. The largest carbon footprint was evident in a medium-high cost urban area, estimated at 20.14 t-CO2, while the carbon footprint found in a rural area was 9.58 t-CO2. In the latter, the primary carbon footprint was almost double the figure of 5.84 t-CO2 (61%) than the secondary carbon footprint of 3.73 t-CO2 (39%). The study reveals a higher carbon footprint in urban areas compared to rural ones depicting the effects of urbanisation and urban sprawl on household lifestyles and carbon footprints. Despite some limitations, the findings of this study will help policymakers design and implement stronger policies that enforce low-carbon activities and energy-saving goods and services in order to reduce urban Malaysia's carbon footprint dramatically. |
| Keywords: | Carbon Emissions,Lifestyle,Energy,Households,Carbon Footprint |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03520198&r= |
| By: | Hinkel, Niklas (Cologne Graduate School in Management, Economics and Social Sciences) |
| Abstract: | In face of increased efforts to mitigate climate change, biofuels may be included in reduction plans for greenhouse gas emissions. Feedstock for first generation biofuels and food crops both use arable land and may compete for it. Also, fuel is an input for the production and transport of food. The purpose of this paper is to quantify with empirical data how these two aspects affect market outcomes and to introduce a counterfactual setting where the latter aspect dominates the former. The setting allows an expansion of biofuel production to increase food production by lowering costs of production and transport. Namely, lower costs increase market access, allowing a higher utilization of idle production capacities for food crops. For this quantification, I develop an open market, welfare maximizing, partial equilibrium model for three interdependent goods fuel, fuel feedstock, and food (these goods are represented by diesel/biodiesel, palm oil, and cassava/maize respectively). The model is calibrated to Zambia, which exhibits the necessary underlying conditions of underutilized agricultural capacity, high transport costs, and low exports of food. Compared to a baseline, model results show the counterfactual switch from fossil diesel to biodiesel to reduce the diesel price by 51%. This increases food supply (cassava and maize combined) by 0.4% and decreases related prices by 3%. Overall welfare increases by 9.9%. If additionally, a higher world market price of maize renders exports just profitable, overall welfare continues to gain 9.9%, domestic food supply rises by 0.3%, and related prices drop by 2%, but food supply including exports grows by 32%. Furthermore, the introduction of a palm oil based biodiesel sector eliminates import dependency on fossil diesel and palm oil. |
| Keywords: | Biofuel; Land Use; Energy Economics; Partial Equilibrium Model; Zambia |
| JEL: | C61 O13 O55 Q16 Q18 |
| Date: | 2022–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2022_002&r= |
| By: | Post, Alison PhD; Ratan, Ishana; Hill, Mary; Huang, Amy; Soga, Kenichi PhD; Zhao, Bingyu PhD |
| Abstract: | In recent years, “smart city” technologies have emerged that allow cities, counties, and other agencies to manage their infrastructure assets more effectively, make their services more accessible to the public, and allow citizens to interface with new web-and mobile-based alternative service providers. This project developed an innovative user-friendly web interface for local and state policymakers that tracks and displays information on the adoption of such technologies in California across the policing, transportation, and water and wastewater sectors for a comprehensive set of local service providers: connectedgov.berkeley.edu. Contrary to conventional smart city indices, our platform allows users to view rates of adoption in maps that attribute adoption to the local public agencies or service providers actually procuring or regulating the technologies in question. Users can construct indices or view technologies one by one. Users can also explore the relationship between technology adoption and local service area conditions and demographics, or download the raw data and scripts used to collect it. This report illustrates the utility of the data we have collected, and the analytics one can perform using our web interface through an analysis of the rollout of three technologies in the transportation sector: electric vehicle (EV) chargers, transportation network company (TNC) service areas, and micromobility services across California. |
| Keywords: | Engineering, Smart cities, data collection, micromobility, ridesourcing, electric vehicle charging, local government agencies, private sector, market penetration, databases, web applications |
| Date: | 2021–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt5mt4m51n&r= |
| By: | Verena Gruber; Ingrid Peignier; Elinora Pentcheva; Anshu Suri |
| Abstract: | The primary objective of this report was to investigate the effectiveness of different messages to mitigate the liking and purchase of energy-intensive vehicles, particularly sport utility vehicles (SUVs). It presents the results of four experimental studies on both topics relevant to policymakers (i.e., regulating price presentation and working on financial empowerment initiatives to increase citizens' numerical and financial literacy) and topics that can be leveraged in social marketing campaigns to help reverse the trend toward energy-intensive vehicles. Specifically, three experiments testing aspects of personal identity, social norms, and time orientation find the following: • Creating negative perceptions of SUV drivers as people with below-average driving skills significantly reduces both appreciation of SUVs and intention to purchase an SUV, regardless of whether the individual already owns a gas-guzzling vehicle. • Changing the social norm around SUVs: SUVs have become a social norm as they were the top selling vehicle in Canada in 2020, and the literature in the field clearly demonstrates the importance of social norms in influencing consumer decision-making. Our results show that these norms can also be used to counter the trend toward gas-guzzlers by emphasizing that compact cars are the normal vehicle to choose. • Get the public to think about the legacy left to their children by purchasing a light truck using time-based cues: highlighting a future orientation decreases the liking and intention to purchase energy-intensive vehicles. The intervention is particularly effective for individuals who already recognize the environmental impact of personal transport. • Building individual capacity to consider all vehicle costs: We find that while individuals are generally able to stay within their budgets, those with low levels of numerical and financial literacy, as well as those who are financially dissatisfied (regardless of their level of literacy), make many more choices that exceed their budgets. This experience underscores the importance of initiatives to improve financial literacy, as particularly vulnerable consumers appear to be attracted to SUV purchases. The research documented in this second report builds directly on the results of the exploratory phase documented in the CIRANO 2021RP-06 project report which assessed the motivations, attitudes and contextual factors influencing vehicle choices among Canadians and empirically tests the effectiveness of different messages in addressing the trend towards fuel-inefficient vehicles in Canada. L'objectif principal de ce rapport était d'étudier l'efficacité de différents messages visant à atténuer le goût et l'achat de véhicules à forte consommation d'énergie, en particulier les véhicules utilitaires sport (VUS). Il présente les résultats de quatre études expérimentales portant à la fois sur des thèmes pertinents pour les décideurs politiques (c'est-à-dire réglementer la présentation des prix et travailler sur des initiatives de renforcement des capacités financières afin de renforcer les connaissances numériques et financières des citoyens) et sur des thèmes qui peuvent être exploités dans des campagnes de marketing social pour aider à inverser la tendance vers des véhicules à forte consommation d'énergie. Plus précisément, trois expériences testant des aspects de l'identité personnelle, des normes sociales et de l'orientation temporelle permettent de constater ce qui suit : • Créer des perceptions négatives des conducteurs de SUV en tant que personnes ayant des compétences de conduite inférieures à la moyenne contribue à réduire de manière significative à la fois l'appréciation des VUS et l'intention d'acheter un VUS, indépendamment du fait que la personne possède déjà un véhicule énergivore ou non. • Changer la norme sociale autour des VUS : Les VUS sont devenus une norme sociale de facto puisqu'ils étaient les véhicules les plus vendus au Canada en 2020, et la littérature dans le domaine démontre clairement l'importance des normes sociales pour influencer la prise de décision des consommateurs. Nos résultats montrent que ces normes peuvent également être utilisées pour contrer la tendance aux véhicules énergivores en soulignant que les voitures de taille compacte sont le véhicule normal à choisir. • Amener le public a? re?fle?chir a? l’he?ritage laisse? a? ses enfants en achetant un camion le?ger a? l’aide de repe?res temporels : le fait de faire ressortir une orientation vers l'avenir permet de diminuer le goût et l'intention d'achat de véhicules à forte consommation d'énergie. L'intervention est particulièrement efficace pour les individus qui reconnaissent déjà l'effet du transport individuel sur l'environnement. • Renforcer les capacite?s individuelles a? tenir compte de tous les cou?ts associe?s aux ve?hicules : Nous constatons que, si les individus sont généralement capables de respecter leur budget, ceux qui ont un faible niveau de compétences numériques et financières, ainsi que ceux qui sont financièrement insatisfaits (indépendamment de leur niveau de compétences), font beaucoup plus de choix qui dépassent leur budget. Cette expérience souligne l'importance des initiatives visant à améliorer les compétences financières, car les consommateurs particulièrement vulnérables semblent être attirés par l'achat de VUS. La recherche documentée dans ce deuxième rapport s'appuie directement sur les résultats de la phase exploratoire documentés dans le rapport de projet CIRANO 2021RP-06 qui a évalué les motivations, les attitudes et les facteurs contextuels influençant les choix de véhicules chez les Canadiens et teste empiriquement l'efficacité de différents messages pour contrer la tendance à l'utilisation de véhicules énergivores au Canada. |
| Keywords: | SUVs,Light trucks,Experimental economics,Consumer behavior,Social marketing, VUS,Camions légers,Ãconomie expérimentale,Comportement du consommateur,marketing social |
| JEL: | C91 M31 M38 Q5 R4 |
| Date: | 2021–12–23 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirpro:2021rp-29&r= |
| By: | Diana Horvath; Francesca Borgonovi |
| Abstract: | Global warming and air pollution threaten human health, economic prosperity and human capital accumulation. The current review presents empirical findings on the effect of adverse environmental conditions on cognition, with a focus on pollution and high temperatures. The review takes a life-course perspective and quantifies both the direct and indirect effects of cumulative and transitory exposure to adverse conditions on cognition starting in-utero all the way to exposure in old age. The review makes clear that exposure to pollutants and high temperatures has economically meaningful costs for both individuals and societies, stemming from lower human capital accumulation. Furthermore, the evidence presented indicates that adverse environmental conditions have large distributional consequences, leading to widening disparities in educational opportunities both across countries and across socio-economic groups within-countries. The review discusses the mechanisms underpinning these effects and explores policies that have the potential to mitigate the negative impact of adverse conditions on cognition. |
| Date: | 2022–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:269-en&r= |
| By: | Xinqing Lu (Sciences Po – Paris School of International Affairs); Erpu Zhu (Sciences Po – Paris School of International Affairs); Loyle Campbell (Sciences Po – Paris School of International Affairs); Manfred Hafner (Fondazione Eni Enrico Mattei, Sciences Po – Paris School of International Affairs, The John Hopkins University – School of Advanced International Studies); Michel Noussan (Fondazione Eni Enrico Mattei, Sciences Po – Paris School of International Affairs, Decisio); Pier Paolo Raimondi (Fondazione Eni Enrico Mattei, Istituto Affari Internazionali) |
| Abstract: | This paper compares the different multi-level climate and energy governance in China, the European Union and the United States. While many comparisons across these three economies exist, they concentrate on comparing the climate and energy “policy instruments” and their results. This paper puts a focus on the importance of institutionalized multi-level governance processes, i.e., the “politics” - the actors and interaction processes inherent in a mode of governance, and the “polities” - the institutional setting. How are priorities and targets decided from both bottom-up and top-down processes? How do the central governments exert control over local authorities and ensure the implementation of their policies? How do the central governments enforce and evaluate the results of the policies? And finally, how do citizens play a role in the multi-level governance in these three blocs? Analysis of multilevel governance highlights the importance of target setting and cadre evaluation in China whereas legislation is the dominant process in the EU and the US. |
| Keywords: | Multi-level Governance, Climate Policy, Energy Policy, Energy Transition, China, the European Union, the United States |
| JEL: | N50 Q48 Q58 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2021.34&r= |
| By: | Jiaxiong Yao; Mr. Yunhui Zhao |
| Abstract: | To reach the global net-zero goal, the level of carbon emissions has to fall substantially at speed rarely seen in history, highlighting the need to identify structural breaks in carbon emission patterns and understand forces that could bring about such breaks. In this paper, we identify and analyze structural breaks using machine learning methodologies. We find that downward trend shifts in carbon emissions since 1965 are rare, and most trend shifts are associated with non-climate structural factors (such as a change in the economic structure) rather than with climate policies. While we do not explicitly analyze the optimal mix between climate and non-climate policies, our findings highlight the importance of the nonclimate policies in reducing carbon emissions. On the methodology front, our paper contributes to the climate toolbox by identifying country-specific structural breaks in emissions for top 20 emitters based on a user-friendly machine-learning tool and interpreting the results using a decomposition of carbon emission ( Kaya Identity). |
| Keywords: | Climate Policies, Carbon Emissions, Machine Learning, Structural Break, Kaya Identity |
| Date: | 2022–01–21 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/009&r= |
| By: | Segal, Katie; Elkind, Ethan; Lamm, Ted |
| Abstract: | Flexibility in California Transportation Funding Programs and Implications for More Climate-Aligned Spending examines key features of the legislative authority for transportation planning and finance in California, including local option sales taxes for transportation, and assesses the amount of flexibility that current laws and practices allow for reprioritizing projects as problems and priorities change. |
| Keywords: | Law |
| Date: | 2021–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt5wz0z0jz&r= |
| By: | Cui, Jingbo; Wang, Chunhua; Zhang, Junjie; Zheng, Yang |
| Abstract: | China has implemented an emission trading system (ETS) to reduce its ever-increasing greenhouse gas emissions while maintaining rapid economic growth. With low carbon prices and infrequent allowance trading, whether China’s ETS is an effective approach for climate mitigation has entered the center of the policy and research debate. Utilizing China’s regional ETS pilots as a quasi-natural experiment, we provide a comprehensive assessment of the effects of ETS on firm carbon emissions and economic outcomes by means of a matched difference-in-differences (DID) approach. The empirical analysis is based on a unique panel dataset of firm tax records in the manufacturing and public utility sectors during 2009 to 2015. We show unambiguous evidence that the regional ETS pilots are effective in reducing firm emissions, leading to a 16.7% reduction in total emissions and a 9.7% reduction in emission intensity. Regulated firms achieve emission abatement through conserving energy consumption and switching to low-carbon fuels. The economic consequences of the ETS are mixed. On one hand, the ETS has a negative impact on employment and capital input; on the other hand, the ETS incentivizes regulated firms to improve productivity. In the aggregate, the ETS does not exhibit statistically significant effects on output and export. We also find that the ETS displays notable heterogeneity across pilots. Mass-based allowance allocation rules, higher carbon prices, and active allowance trading contribute to more pronounced effects in emission abatement. |
| Keywords: | climate change; emission trading system; firm emissions; 72073055; 71773043; 71773062 |
| JEL: | R14 J01 |
| Date: | 2021–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:113492&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:camjip:2201&r= |
| By: | Alkan, Ayla; Oğuş-Binatlı, Ayla |
| Abstract: | Turkey’s CO2 emissions have been steadily increasing since 1990. Determining influences of socioeconomic factors behind this increase can help identify which the sectors and what types of policies should be prioritized to go into action. This paper identifies the main contributors to CO2 emissions change within five-year intervals during 1990-2015 by adopting Structural Decomposition Analysis (SDA) method. The results show that CO2 emissions increase was driven by per capita expenditure and population factors, while emission coefficient factor had a reducing effect on emissions. As the production side factors fell pretty behind the consumption side factors, net emissions was positive and the actual determiner in CO2 emissions was found as consumption. The most contributing sectors were Electricity, Land Transportation and Mineral. Speeding up renewable energy investments and continuing energy efficiency measures, placing a carbon tax on electricity and oil consumption, promoting public transport and use of clean fuels and vehicles, slowing down construction and raising consumer awareness to change their consumption behavior, particularly to reduce demand for high emitting products and services should be the top priority policies. |
| Keywords: | Supply-Use Table; Structural Decomposition Analysis; CO2 emission; INDC; Turkey |
| JEL: | C67 D57 Q5 Q54 R15 |
| Date: | 2021–02–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:111635&r= |
| By: | Nemo Semret |
| Abstract: | What happens to mining when the Bitcoin price changes, when there are mining supply shocks, the price of energy changes, or hardware technology evolves? We give precise answers based on the technical forces and incentives in the system. We then build on these dynamics to consider value: what is the cost and purpose of mining, and is it worth it? Does it use too much energy, is it bad for the environment? Finally we extend our analysis to the long term: is mining economically feasible forever? What will the global hash rate be in 40 years? How is mining impacted by the limits of computation and energy? Is it physically sustainable in the long run? From first principles, we derive a fundamental scale-invariant feasibility constraint, which enables us to analyze the interlocking dynamics, find key invariants, and answer these questions mathematically. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2201.06072&r= |
| By: | Mr. Adil Mohommad; Evgenia Pugacheva |
| Abstract: | This paper inquires into how individual attitudes to climate issues and support for climate policies have evolved in the context of the pandemic. Using data from a unique survey of 14,500 individuals across 16 major economies, this study shows that the experience of the COVID-19 pandemic increased concern for climate change and public support for green recovery policies. This suggests that the global health crisis has opened up more space for policy makers in key large economies to implement bolder climate policies. The study also finds that support for climate policies decreases when a person has experienced income and/or job loss during the pandemic. Protecting incomes and livelihoods in the near-term is thus important also from a climate policy perspective. |
| Keywords: | Climate change, climate policy, public opinion, COVID-19 |
| Date: | 2022–02–04 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2022/023&r= |
| By: | Nacima Moussa (UMBB - Université M'Hamed Bougara Boumerdes) |
| Abstract: | This article is about the evolution of the Algerian revenue regulations funds over the period 2000-2020, which was created in 2000 to deal with the oil chock, the funds has contributed for many years since its creation to the compensation of the lower values of the oil taxation, either for the reduction of the public debt, or, finally, to finance the budget deficit of the State, which proves its growing role on the one hand, but on the other hand the 2014 oil shock led to the total drying up of its assets in early 2017. |
| Abstract: | Cet article détaille l'évolution du fonds de régulations des recettes algérienne sur la période 2000-2020, créé en 2000 pour faire face spécialement au choc pétrolier. Le fonds a contribué pendant de longues années depuis sa création soit à la compensation des moins-values de la fiscalité pétrolière, soit pour la réduction de la dette publique, soit, enfin, pour financer le déficit budgétaire de l'État, ce qui prouve son rôle grandissant d'un côté, mais d'un autre coté le choc pétrolier de 2014 a conduit à l'assèchement total de ses actifs début 2017. |
| Keywords: | Code Jel,F21,F30,G29,Q43 revenue regulation funds,sovereign wealth funds,budget deficit,oil chock. JEL Classification Codes : F21,Q43 |
| Date: | 2021–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03505863&r= |
| By: | Loyle Campbell (Sciences Po – Paris School of International Affairs); Manfred Hafner (Fondazione Eni Enrico Mattei, Sciences Po – Paris School of International Affairs, The John Hopkins University – School of Advanced International Studies); Xinqing Lu (Sciences Po – Paris School of International Affairs); Michel Noussan (Fondazione Eni Enrico Mattei, Sciences Po – Paris School of International Affairs, Decisio); Pier Paolo Raimondi (Fondazione Eni Enrico Mattei, Istituto Affari Internazionali); Erpu Zhu (Sciences Po – Paris School of International Affairs) |
| Abstract: | This paper compares how the pursuit of self-sufficient Lithium-ion battery production by the three main geo-economic players (China, the European Union, and the United States) is unfolding by looking at the electrification of the transport sector. The analysis of this paper uses the concept of energy security and the 4 As outlined by the Asia Pacific Energy Research Center (2007) to outline the availability, accessibility, affordability, and acceptability of Lithium-ion (Li-Ion) batteries for each respective actor. This paper aims to compare the dynamics of each geoeconomic player’s EV deployment along these four indicators. Most work in this field assesses the battery strategies of these three geo-economic players individually or focuses on EV deployment from a purely economics perspective. In contrast, this paper attempts to bridge this gap through the framework of energy security to compare how each of the three player’s battery strategy connects to broader EV deployment. Adopting this framework allows us to highlight how China’s strong industrial policies and generous incentives contrast to the government multilateral alliance-building done in the European Union and the overwhelmingly dominant role of private actors found in the United States. |
| Keywords: | Lithium-Ion Batteries, Electric Vehicles, Energy Transition, Energy Security, China, the European Union, the United States |
| JEL: | Q48 Q30 F59 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2021.35&r= |
| By: | Lu, Xinqing; Zhu, Erpu; Campbell, Loyle; Hafner, Manfred; Noussan, Michel; Raimondi, Pier Paolo |
| Abstract: | This paper compares the different multi-level climate and energy governance in China, the European Union and the United States. While many comparisons across these three economies exist, they concentrate on comparing the climate and energy “policy instruments” and their results. This paper puts a focus on the importance of institutionalized multi-level governance processes, i.e., the “politics” - the actors and interaction processes inherent in a mode of governance, and the “polities” - the institutional setting. How are priorities and targets decided from both bottom-up and top-down processes? How do the central governments exert control over local authorities and ensure the implementation of their policies? How do the central governments enforce and evaluate the results of the policies? And finally, how do citizens play a role in the multi-level governance in these three blocs? Analysis of multilevel governance highlights the importance of target setting and cadre evaluation in China whereas legislation is the dominant process in the EU and the US. |
| Keywords: | Political Economy, Resource /Energy Economics and Policy |
| Date: | 2021–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:317745&r= |
| By: | Carlo Gola (Bank of Italy); Johannes Sedlmeir (University of Bayreuth) |
| Abstract: | This paper proposes policies to improve the environmental sustainability of distributed ledger technology (DLT). While the proof-of-work (PoW) consensus protocol requires large amounts of electricity, several DLT protocols consume much less, while still being sufficiently reliable and decentralized. To move from a PoW protocol to a greener system, such as proof-of-stake (PoS) or proof-of-authority (PoA), the consensus of the majority of miners (measured by their computing power) is required during the transition period to preserve the security requirements. Given that miners have an incentive to maintain the status quo, this paper illustrates various policies designed to bring about the transition. We aim to show that the current policy approach adopted by banking and financial regulators, based on the principle of technological neutrality, may need a reappraisal in order to consider the ‘sustainability’ criterion. Policymakers should not stifle financial innovation but should instead intervene if technology is a source of negative externalities. |
| Keywords: | blockchain, DLT, energy consumption, proof-of-work, proof-of-stake, proof-of-authority, carbon tax, prudential requirements, market infrastructures |
| JEL: | G18 Q56 O3 K2 H23 L63 |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_670_22&r= |
| By: | Huang, Amy; Post, Alison E.; Ratan, Ishana; Hill, Mary C.; Zhao, Bingyu |
| Abstract: | In recent years, “smart city” information and communication technologies have proliferated. For local government agencies, procuring and introducing these technologies offers the possibility to manage infrastructure assets more effectively, plan for preventive maintenance, and disseminate schedules and information about transit and other services. Many of these technologies are deployed by private firms in the context of local regulations and government-sponsored incentives. In the transportation sector, examples of “smart city” technology services provided by private firms include: electric vehicle (EV) chargers, micro-mobility (e.g., scooter and bike rentals), and transportation network company (TNC) services, such as Uber and Lyft. To understand variation in how private sector smart city transportation technologies are deployed across California, researchers at UC Berkeley webscraped and cross verified data on EV chargers, Uber services, and micro-mobility. EV charger data was obtained from the Department of Energy, and Uber and micromobility access data came from vendor websites. |
| Keywords: | Engineering |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt35r8k96t&r= |