nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒03‒21
34 papers chosen by
Roger Fouquet
London School of Economics

  1. Exploring the Contribution of Energy Price to Carbon Emissions in African Countries By Umar, Bamanga; Alam, Md. Mahmudul; Al-Amin, Abul Quasem
  2. What Determines Effectiveness of Renewable Energy Standards? General Equilibrium Analytical Model and Empirical Analysis By Don Fullerton; Chi L. Ta
  3. Magnitudes of Households’ Carbon Footprint in Iskandar Malaysia: A Policy Implications for Sustainable Development By Zen, Irina Safitri; Al-Amin, Abul Quasem; Alam, Md. Mahmudul; Doberstein, Brent
  4. The contribution of bioenergy to the decarbonization of transport: a multi-model assessment By Florian Leblanc; Ruben Bibas; Silvana Mima; Matteo Muratori; Shogo Sakamoto; Fuminori Sano; Nico Bauer; Vassilis Daioglou; Shinichiro Fujimori; Matthew Gidden; Estsushi Kato; Steven Rose; Junichi Tsutsui; Detlef van Vuuren; John Weyant; Marshall Wise
  5. Global Economic Crisis, Energy Use, CO2 Emissions and Policy Roadmap amid COVID-19 By Aktar, Asikha; Alam, Md. Mahmudul; Al-Amin, Abul Quasem
  6. How are Day-ahead Prices Informative for Predicting the Next Day's Consumption of Natural Gas? Evidence from France By Arthur Thomas; Olivier Massol; Benoît Sévi
  8. Considering distribution grids and local flexibilities in the prospective development of the European power system by 2050 By Stéphane Allard; Vincent Debusschere; Silvana Mima; Tuan Tran Quoc; Nouredine Hadjsaid; Patrick Criqui
  9. Energy Swaraj: Geospatial Energy Map of India Presents Immense Potential and Opportunities By Sarwal, Rakesh
  10. Data-driven structural modeling of electricity price dynamics By Valentin Mahler; Robin Girard; Georges Kariniotakis
  11. Centroamérica y la República Dominicana: estadísticas de hidrocarburos, 2020 By Torijano, Eugenio
  12. Investigation into the rationale of migration intention due to air pollution integrating the Homo Oeconomicus traits By Vuong, Quan-Hoang; Le, Tam-Tri; Quang-Loc, Nguyen; Nguyen, Minh-Hoang
  13. Environmental Preferences and Technological Choices : Is Market Competition Clean or Dirty? By Philippe Aghion; Roland Bénabou; Ralf Martin; Alexandra Roulet
  14. Environmental Liabilities, Creditors, and Corporate Pollution: Evidence from the Apex Oil Ruling By Jianqiang Chen; Pei-Fang Hsieh; Po-Hsuan Hsu; Ross Levine
  15. Estimating the Influence of Wind on Air Pollution Using a Causal Inference Pipeline By Zabrocki, Léo; Alari, Anna; Benmarhnia, Tarik
  16. Behavioural changes in urban mobility in Barcelona due to the COVID-19 pandemic and its impact on air pollution and greenhouse gas emissions By Peters, Corinna
  17. Tail-risk Comprehension and Protection in Real-time Electricity Pricing : Experimental Evidence By Pretto, Madeline
  18. Air Pollution, Avoidance Behavior and Labor Supply: Evidence from the United States By Djoumessi, Berenger Tiague
  19. Understanding Climate Damages: Consumption versus Investment By Gregory Casey; Stephie Fried; Matthew Gibson
  20. Informe regional sobre el ODS 7 de sostenibilidad energética en América Latina y el Caribe By Contreras Lisperguer, Rubén; Salgado, René
  21. The evolution of energy poverty theory: a scientometrics approach By Guevara, Zeus; Espinosa, Marina; López-Corona, Oliver
  22. What if? The Economic Effects for Germany of a Stop of Energy Imports from Russia By Ruediger Bachmann; David Baqaee; Christian Bayer; Moritz Kuhn; Andreas Löschel; Benjamin Moll; Andreas Peichl; Karen Pittel; Moritz Schularick
  23. Evaluación del potencial energético de los recursos biomásicos en Honduras By Tauro, Raúl J.; Caballero, José Luis; Salinas, Miguel Ángel; Ghilardi, Adrián; Arroyo, José Manuel
  24. Growth in an OLG Economy with Polluting Non-Renewable Resources By Nicolas Clootens
  25. Brain drain out of the blue: pollution-induced migration in a developing country By Khuc, Quy Van; Nguyen, Minh-Hoang; Le, Tam-Tri; Nguyen, Truc-Le; Nguyen, Thuy; Vuong, Quan-Hoang
  26. Residential Neighbourhood Charging of Electric Vehicles: an exploration of user preferences By Budnitz, Hannah; Meelen, Toon; Schwanen, Tim
  27. A comparison of institutional quality in the South Caucasus: Focus on Azerbaijan By Niftiyev, Ibrahim
  28. Materials industry modelling in net-zero emissions scenarios: the case of steel By Kimon Keramidas; Silvana Mima; Adrien Bidaud
  29. Monetary Architecture and the Green Transition By Murau, Steffen; Haas, Armin; Guter-Sandu, Andrei
  30. Climate change and fiscal sustainability: risks and opportunities By Agarwala, Matthew; Burke, Matt; Klusak, Patrycja; Mohaddes, Kamiar; Volz, Ulrich; Zenghelis, Dimitri
  31. The economics of global climate variability By Stainforth, David A.; Calel, Raphael
  32. Efecto del impuesto al CO2 en el sector de la energía de países seleccionados de América Latina y el Caribe By Abdón Cifuentes, Luis
  33. Sustainability and Resilience through Transformative Innovation Policy, at National and Regional Level By Phoebe Koundouri; Sylvia Schwaag Serger; Angelos Plataniotis
  34. Panorama de los océanos, los mares y los recursos marinos en América Latina y el Caribe: conservación, desarrollo sostenible y mitigación del cambio climático By -

  1. By: Umar, Bamanga; Alam, Md. Mahmudul (Universiti Utara Malaysia); Al-Amin, Abul Quasem
    Abstract: The increasing level of greenhouse gas carbon emission currently exacerbates the devastating effect of global warming on the Earth’s ecosystem. Energy usage is one of the most important determinants that is increasing the amount of carbon gases being released. Simultaneously, the level of energy usage is derived by the price and therefore, this study examines the contribution of energy price to carbon gas emissions in thirteen African nations for the period spanning 1990 to 2017. It does this by utilizing the Cross-sectional Dependence (CD), Augmented Mean Group (AMG) and Pooled Mean Group (PMG) panel modelling methods. The findings of the AMG model suggest that a 1% increase in energy price leads to a 0.02% decerease in carbon emission. The results further reveal that a 1% increase in energy intensity and technological innovation lead to 0.04% and 3.65% increase in carbon emission, respectively, in the selected African countries. Findings will help policymakers to implement effective energy price policies to reduce carbon emissions and achieve sustainable development goals especially in the emerging economies of Africa.
    Date: 2021–11–30
  2. By: Don Fullerton; Chi L. Ta
    Abstract: Our new analytical general equilibrium model is used to study effects of tightening state Renewable Portfolio Standards (RPS) on electricity price, CO2 emissions, fossil fuel electricity generation, and two kinds of renewable generation. We show how those outcomes depend on key state characteristics such as endowments of potential intermittent and non-intermittent (“dispatchable”) renewable sources and the degree of intermittency. Our three extensions investigate key assumptions. We prove theorems and derive empirical hypotheses about what state characteristics makes RPS programs more effective. Using U.S. state-level data from 1990 to 2015, we find the data are consistent with these hypotheses.
    JEL: H23 Q28 Q42
    Date: 2022–02
  3. By: Zen, Irina Safitri; Al-Amin, Abul Quasem; Alam, Md. Mahmudul (Universiti Utara Malaysia); Doberstein, Brent
    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.
    Date: 2021–11–30
  4. By: Florian Leblanc (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); Ruben Bibas (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); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Matteo Muratori (NREL - National Renewable Energy Laboratory); Shogo Sakamoto (Central Research Institute of Electrical Power Industry); Fuminori Sano (RITE, Research Institute of Innovative Technology for the Earth); Nico Bauer (PIK - Potsdam Institute for Climate Impact Research); Vassilis Daioglou (PBL Netherlands Environmental Assessment Agency); Shinichiro Fujimori (NIES - National Institute for Environmental Studies); Matthew Gidden (Climate Analytics - Partenaires INRAE, IIASA - International Institute for Applied Systems Analysis [Laxenburg]); Estsushi Kato (IAE - Institute of Applied Energy); Steven Rose (EPRI - Electrical Power Research Institute - Electrical Power Research Institute); Junichi Tsutsui (Central Research Institute of Electrical Power Industry); Detlef van Vuuren (PBL Netherlands Environmental Assessment Agency); John Weyant (Stanford University); Marshall Wise (University of Maryland [College Park] - University of Maryland System)
    Abstract: The expected growth in the demand for mobility and freight services exacerbates the challenges of reducing transport GHG emissions, especially as low-carbon alternatives to petroleum fuels are limited for shipping, air and long-distance road travel. Biofuels can offer a pathway to significantly reduce emissions from these sectors, as they can easily substitute for conventional liquid fuels in internal combustion engines. In this paper we assess the potential of bioenergy to reduce transport GHG emissions through an integrated analysis leveraging various assessment models and scenarios, as part of the 33rd Energy Modeling Forum study (EMF-33). We find that bioenergy can contribute a significant, albeit not dominant, proportion of energy supply to the transport sector: in scenarios aiming to keep the temperature increase below 2°C by the end of the 21st century, models project that bioenergy can provide in average 42 EJ/yr (ranging from 5 to 85 EJ/yr) in 2100 for transport (compared to 3.7 EJ in 2018), mainly through lignocellulosic fuels. This is 9-62% of final transport energy use. Only a small amount of bioenergy is projected to be used in transport through the electricity and hydrogen pathways, with a larger role for biofuels in road passenger transport than in freight. The association of carbon capture and storage (CCS) with bioenergy technologies (BECCS) is a key determinant in the role of biofuels in transport, because of the competition for biomass feedstock to provide other final energy carriers along with carbon removal. Among models that consider CCS in the biofuel conversion process the average market share of biofuels is 21% in 2100, compared to 10% for models that do not. Cumulative direct emissions from the transport sector account for half of the emission budget (from 300 to 670 out of 1,000 GtCO2). However, the carbon intensity of transport decreases as much as other energy sectors in 2100 when accounting for process emissions, including carbon removal from BECCS. Lignocellulosic fuels become more attractive for transport decarbonization if BECCS is not feasible for any energy sectors. Since global transport service demand increases and biomass supply is limited, its allocation to and within the transport sector is uncertain and sensitive to assumptions about political as well as technological and socioeconomic factors.
    Keywords: Bioenergy,Transport sector,Lignocellulosic fuels,Climate mitigation,Integrated Assessment Models
    Date: 2022
  5. By: Aktar, Asikha; Alam, Md. Mahmudul (Universiti Utara Malaysia); Al-Amin, Abul Quasem
    Abstract: The COVID-19 pandemic has emerged as one of the deadliest infectious diseases on the planet. Millions of people and businesses have been placed in lockdown where the main aim is to stop the spread of the virus. As an extreme phenomenon, the lockdown has triggered a global economic shock at an alarming pace, conveying sharp recessions for many countries. In the meantime, the lockdowns caused by the COVID-19 pandemic have drastically changed energy consumption patterns and reduced CO2 emissions throughout the world. Recent data released by the International Monetary Fund and International Energy Agency for 2020 further forecast that emissions will rebound in 2021. Still, the full impact of COVID-19 in terms of how long the crisis will be and how the consumption pattern of energy and the associated levels of CO2 emissions will be affected are unclear. This review aims to steer policymakers and governments of nations toward a better direction by providing a broad and convincing overview on the observed and likely impacts of the pandemic of COVID-19 on the world economy, world energy demand, and world energy-related CO2 emissions that may well emerge in the next few years. Indeed, given that immediate policy responses are required with equal urgency to address three things—pandemic, economic downturn, and climate crisis. This study outlines policy suggestions that can be used during these uncertain times as a guide.
    Date: 2021–11–30
  6. By: Arthur Thomas (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IUML - FR 3473 Institut universitaire Mer et Littoral - UBS - Université de Bretagne Sud - UM - Le Mans Université - UA - Université d'Angers - CNRS - Centre National de la Recherche Scientifique - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UN - Université de Nantes - ECN - École Centrale de Nantes - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes); Olivier Massol (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, City University of London); Benoît Sévi (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - IUML - FR 3473 Institut universitaire Mer et Littoral - UBS - Université de Bretagne Sud - UM - Le Mans Université - UA - Université d'Angers - CNRS - Centre National de la Recherche Scientifique - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UN - Université de Nantes - ECN - École Centrale de Nantes - IEMN-IAE Nantes - Institut d'Économie et de Management de Nantes - Institut d'Administration des Entreprises - Nantes - UN - Université de Nantes)
    Abstract: The purpose of this paper is to investigate whether the next day's consumption of natural gas can be accurately forecast using a simple model that solely incorporates the information contained in dayahead market data. Hence, unlike standard models that use a number of meteorological variables, we only consider two predictors: the price of natural gas and the spark ratio measuring the relative price of electricity to gas. We develop a suitable modeling approach that captures the essential features of daily gas consumption and in particular the nonlinearities resulting from power dispatching. We use the case of France as an application as this is, as far as is known, the very first attempt to model and predict the country's daily gas demand. Our results document the existence of a long-run relation between demand and spot prices and provide estimates of the own- and cross-price elasticities. We also provide evidence of the pivotal role of the spark ratio which is found to have an asymmetric and highly nonlinear impact on demand variations. Lastly, we show that our simple model is sufficient to generate predictions that are considerably more accurate than the forecasts published by infrastructure operators.
    Keywords: Natural Gas Markets,Day-Ahead Prices,Demand Price Elasticity,Load Forecasting
    Date: 2022–09–01
  7. By: Bart Capéau; Duygu Güner; Nabil Sheikh Hassan; Jonas Vanderkelen; Toon Vanheukelom; Stijn Van Houtven; André Decoster
    Abstract: Belgian households are hit hard by the ongoing energy crisis. This was already the case before the Russian invasion of Ukraine, when energy prices increased because of a supply shock, exacerbated by the uplift in economic growth and accompanying higher demand for energy products. Year‐on‐year inflation stood at 8.0% in February 2022, the highest level in Belgium since August 1983 (Statbel 2022). The increase of the Consumer Price Index is driven by a price increase in electricity (+72.8%) and gas (+133.7%). However, not all households are faced with such a large price increase. Households with a fixed contract1 are protected – at least temporarily – against the adverse price shocks. New energy contracts are generally flexible. The longer the inflated prices persist, the more fixed contracts will end and forcibly be renewed with higher, flexible rates. The duration of this crisis is therefore of importance for the impact of the price shock and the time window covered by the analysis will thus affect itsassessment. The price shock is also asymmetric because of differences in household consumption patterns. While households in the bottom income decile spend 7.3% of their disposable income on electricity and gas, households in the top decile only spend 2.3%, and large differences within thedeciles exist as well.
    Date: 2022–03
  8. By: Stéphane Allard (G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Vincent Debusschere (G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Tuan Tran Quoc (INES - Institut National de L'Energie Solaire - CNRS - Centre National de la Recherche Scientifique - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CEA - Commissariat à l'énergie atomique et aux énergies alternatives); Nouredine Hadjsaid (G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Patrick Criqui (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: Previous works proposed a tool coupling models of a prospective outlook on long-term energy systems and a transmission grid investment and dispatch, focusing on the representation of the European transmission grid and its development on the horizon 2050–2100. In this paper, this prospective tool is further improved with the capacity to compute voltage as well as active and reactive power flows at the level of the distribution grid. This added capacity allows analyzing various issues related to the integration of variable energy resources in three representative real medium voltage distribution grids (urban, rural and semi-urban). Technical flexibility solutions such as on-load tap changers, variable energy resources curtailment and storage technologies are modeled and compared to reinforcement. A cost comparison between these flexibility solutions is also carried out. Finally, the new version of the tool is used to evaluate the CO2−eq emissions linked to the development of the European power system infrastructure, with flexibility solutions, up to the year 2050 (both high voltage alternative and direct current lines reinforcement being considered) under a 2 °C climate energy policy scenario. Results show that it exists various options for the development of the European grid infrastructure, which are clearly sensitive to the level of accuracy in the representation of the physical infrastructures and their technical limitations. Being able to represent the distribution grid, in addition to the transmission one, has a noticeable impact on the prospective outlook of the European power systems both in terms of infrastructure reinforcement and estimation of the needs of flexibility solutions.
    Keywords: Long-term planning,European transmission grid,Distribution grids,Variable energy resources,Storage systems,Flexibility solutions
    Date: 2020–07–15
  9. By: Sarwal, Rakesh
    Abstract: GIS Energy map has the potential to facilitate India's achievement of Sustainable Development Goal (SDG) 7 which is to ensure access to affordable, reliable, sustainable, and modern energy for all. It can thereby help build energy Swaraj, and a foundation for sustainable development in the country.
    Date: 2021–12–05
  10. By: Valentin Mahler (PERSEE - Centre Procédés, Énergies Renouvelables, Systèmes Énergétiques - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres, ADEME - Agence de l'Environnement et de la Maîtrise de l'Energie); Robin Girard (PERSEE - Centre Procédés, Énergies Renouvelables, Systèmes Énergétiques - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres); Georges Kariniotakis (PERSEE - Centre Procédés, Énergies Renouvelables, Systèmes Énergétiques - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres)
    Abstract: In many countries, electricity prices on day-ahead auction markets result from a market clearing designed to maximize social welfare. For each hour of the day, the market price can be represented as the intersection of a supply and demand curve. Structural market models reflect this price formation mechanism and are widely used in prospective studies guiding long-term decisions (e.g. investments and market design). However, simulating the supply curve in these models proves challenging since estimating the sell orders it comprises (i.e. offer prices and corresponding quantities) typically requires formulating numerous techno-economic hypotheses about power system assets and the behaviors of market participants. Due to imperfect competition, real market prices differ from the theoretical optimum, but modeling this difference is not straightforward. The objective of this work is to propose a model to simulate prices on day-ahead markets that account for the optimal economic dispatch of generation units, while also making use of historical day-ahead market prices. Inferring from historical data is especially important when not all information is made public (e.g. bidding strategies) or due to difficulty in accurately accounting for qualitative notions in quantitative models (e.g. market power). In this paper we propose a method for the parametrization of sell orders associated with production units. The estimation algorithm for this parametrization makes it possible to mitigate the requirement for analytic formulation of all of the above-mentioned aspects and to take advantage of the ever-increasing volume of available data on power systems (e.g. technical and market data). Parametrized orders also offer the possibility to account for various factors in a modular fashion, such as the strategic behavior of market participants. The proposed approach is validated using data related to the French day-ahead market and power system, for the period from 2015 to 2018.
    Keywords: Day-ahead markets,Electricity prices,Structural market model,Prospective studies,Power systems
    Date: 2022
  11. By: Torijano, Eugenio
    Abstract: En este documento se presentan cuadros regionales y nacionales con datos estadísticos del subsector hidrocarburos de los ocho países que conforman el Sistema de la Integración Centroamericana (SICA): Belice, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panamá y la República Dominicana. Ha sido elaborado gracias a la colaboración de las instituciones nacionales y regionales del sector petrolero de los países del SICA.
    Date: 2021–12–23
  12. By: Vuong, Quan-Hoang; Le, Tam-Tri; Quang-Loc, Nguyen; Nguyen, Minh-Hoang
    Abstract: Air pollution is a considerable environmental stressor for urban residents in developing countries. Perceived health risks of air pollution might induce migration intention among inhabitants. The current study employed the Bayesian Mindsponge Framework (BMF) to investigate the rationale behind the domestic and international migration intentions among 475 inhabitants in Hanoi, Vietnam – one of the most polluted capital cities worldwide. We found that people perceiving more impacts of air pollution in their daily life are more likely to have migration intention. The effect of perceived air pollution impact on international migration intention is stronger than that of domestic migration. Acknowledging a family member’s air pollution-induced sickness moderated the association between perceived air pollution impact and domestic migration intention, while the personal experience of air pollution-induced sickness did not. In contrast, the moderation effect of personal experience of sickness became significant in the international migration circumstance, but the effect of information about a family member’s sickness was trivial. The findings suggest that urban inhabitants’ consideration of air pollution averting strategies reflects some characteristics of Homo Oeconomicus. Additionally, the individual’s socio-economic decision is seemingly insignificant on a social scale. Still, through environmental stressors as catalysts, such decisions might result in considerable social outcomes (e.g., internal migration and emigration).
    Date: 2021–11–11
  13. By: Philippe Aghion (Collège de France); Roland Bénabou (Princeton University); Ralf Martin (Imperial College London); Alexandra Roulet (INSEAD)
    Abstract: We investigate the effects of consumers' environmental concerns and market competition on firms' decisions to innovate in "clean" technologies. Agents care about their consumption and environmental footprint; firms pursue greener products to soften price competition. Acting as complements, these forces determine R&D, pollution, and welfare. We test the theory using panel data on patents by 8,562 automobile-sector firms in 41 countries, environmental willingness-to pay, and competition. As predicted, exposure to prosocial attitudes fosters clean innovation, all the more so where competition is strong. Plausible increases in both together can spur it as much as a large fuel-price increase.
    Keywords: climate change, Competition, Environment, Innovation, Patents, Social Responsibility
    JEL: D21 D22 D62 D64 H23 O30 O31
    Date: 2021–01
  14. By: Jianqiang Chen; Pei-Fang Hsieh; Po-Hsuan Hsu; Ross Levine
    Abstract: We evaluate the impact of the 2008 Apex Oil court decision that made the creditors of some corporations financially liable for the environmental damages caused by specific pollutants. Apex reduced the circumstances under which environmental liabilities were dischargeable in Chapter 11, which generated financial incentives for the creditors of firms near bankruptcy to pressure their firms to reduce emissions of those pollutants. We discover that Apex lowered bond prices, widened loan spreads, and reduced corporate pollution among firms that (a) release the specific chemicals covered by Apex and (b) are close to Chapter 11 and hence likely to be affected by changes to the dischargeability of environmental liabilities. Further tests suggest that creditors rapidly responded to Apex and successfully induced firms to reduce pollution.
    JEL: G0 K0 N2
    Date: 2022–02
  15. By: Zabrocki, Léo (Paris School of Economics - EHESS); Alari, Anna; Benmarhnia, Tarik
    Abstract: Changes in wind patterns can substantially alter the air pollution level of a city. However, it is challenging to estimate a causal effect from observed data. Since wind patterns are not randomly distributed over time and are related to other weather parameters influencing air pollution, researchers must adjust for these confounding factors. As an alternative to current practices, we implement a causal inference pipeline to embed an observational study within an hypothetical randomized experiment. We illustrate this new approach for air pollution studies using 4018 daily observations from Paris, France, over the 2008-2018 period. Using the Neyman-Rubin potential outcomes framework, we first define treatment of interest as the comparison of air pollutant concentrations when winds are blowing from the North-East (824 units) with concentrations when wind come from other directions (3,194 units). We then implement a matching algorithm to approximate a pair randomized experiment and find 119 matched pairs. By selecting units that are comparable in regards to various confounders, matching allows us to adjust nonparametrically for observed confounders while avoiding model extrapolation to treated days without similar control days. Once the balance of treated and control groups was deemed satisfactory, we estimate the average differences in air pollutant concentrations and their sampling variability using Neymanian inference, a mode of inference specifically designed for randomized experiments. We find that North-East winds increase PM10 concentrations by 4.8 μg/m³ (95% CI: 2.6, 6.9). As in any observational studies, an unobserved confounder could bias our results. We therefore carry out a quantitative bias analysis which reveals that an unobserved variable 2 times more common among treated units could make our data compatible with small negative effects up to very large effects (95% CI: -2.3, 10). Our causal inference approach highlights the importance of checking covariates balance and bias from unmeasured confounders in air pollution studies.
    Date: 2021–11–04
  16. By: Peters, Corinna
    Abstract: This study assesses changes in mobility behaviour in the City of Barcelona due the COVID‐19 pandemic and its impact on air pollution and GHG emissions. Urban transport is an important source of global greenhouse gas (GHG) emissions. Improving urban mobility patterns is therefore crucial for mitigating climate change. This study combines quantitative survey data and official government data with in‐depth interviews with public administration officials of the City. Data illustrates that Barcelona has experienced an unprecedented reduction in mobility during the lockdown (a 90% drop) and mobility remained at comparatively low levels throughout the year 2020. Most remarkable is the decrease in the use of public transport in 2020 compared to pre‐pandemic levels, whereas road traffic has decreased to a lesser extent and cycling surged at times to levels up to 60% higher than pre‐pandemic levels. These changes in mobility have led to a radical and historic reduction in air pollution, with NO2 and PM10 concentration complying with WHO guidelines in 2020. Reductions in GHG emissions for Barcelona’s transport sector are estimated at almost 250.000 t CO2eq in 2020 (7% of the City’s overall annual emissions). The study derives policy implications aimed at achieving a long‐term shift towards climate‐friendlier, low‐emission transport in Barcelona, namely how to recover lost demand in public transport and seize the opportunity that the crisis brings for reform by further reducing road traffic and establishing a 'cycling culture' in Barcelona, as already achieved in other European cities.
    Date: 2021–12–01
  17. By: Pretto, Madeline (Monash University)
    Abstract: Do households comprehend the nature of price tail-risks inherent to real-time electricity pricing plans? Through an incentivised online experiment, we find that a probabilistic risk disclosure elicits greater demand for real-time pricing (RTP) products relative to a low-risk fixed-price alternative, without improving comprehension of tail-risk in RTP. Participants also show a tendency to place low value on tail-risk protection. Finally, the experience of a bill shock improves risk comprehension and drives choice away from RTP, suggesting that personal experience plays a greater role in self-imposed risk protection than does a probabilistic risk disclosure. We discuss the implications these findings may have for regulators with a consumer protection mandate.
    Keywords: Vietnam retail electricity market ; block rate pricing ; welfare effect ; electricity externalities ; demand function ; cash transfer ; quantity-based subsidy JEL Classification: D12 ; D63 ; Q41 ; Q48
    Date: 2021
  18. By: Djoumessi, Berenger Tiague
    Abstract: I estimate the effects of exposure to ambient air pollution on daily health-related behaviors, weekly labor supply, and productivity at the workplace among US individuals. Using an individual fixed-effects regression approach, I examine how increases in daily outdoor air quality influence the time spent on daily health-related activities. I find that only when the air quality index becomes very unhealthy or hazardous, there is a 21% decrease in the minutes spent on outdoor sport and exercise activities, and a 263% increase in minutes spent watching TV. I also implement an instrumental variable (IV) strategy using wind direction as an exogenous shock to satellite-based aerosol optical depth to understand how changes in air pollution affect labor supply. I find that increase in the total aerosol optical depth (AOD) leads to no overall change in labor supply decisions, both on the decision to go to work and the weekly worked hours, but it does so on the likelihood of going to work for women. The effects across subgroups also suggest differential effects in avoidance behaviors across the income distribution, age groups, occupations, race, and ethnicity, especially when the air quality is very unhealthy or hazardous.
    Date: 2022–02–15
  19. By: Gregory Casey (Williams College); Stephie Fried (Arizona State University); Matthew Gibson (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: O13 O44 Q56
    Date: 2022–01–03
  20. By: Contreras Lisperguer, Rubén; Salgado, René
    Abstract: En esta publicación se presentan los resultados y logros de la iniciativa “Observatorio Regional sobre Energías Sostenibles (ROSE)” de la Comisión Económica para América Latina y el Caribe (CEPAL). ROSE se constituyó inicialmente como un proyecto financiado por la Cuenta de las Naciones Unidas para el Desarrollo y, en la actualidad, es un referente regional que ha ayudado a los países a desarrollar capacidades técnicas para el monitoreo del Objetivo de Desarrollo Sostenible (ODS) 7, a fin de garantizar el acceso de la población a una energía asequible, segura, sostenible y moderna en el marco de la Agenda 2030. El documento incluye un análisis de las tendencias regional y subregional desde la perspectiva del acceso, las energías renovables y la eficiencia energética, así como estudios específicos de países como la Argentina, Bolivia (Estado Plurinacional de), Cuba, Guyana, Panamá y el Uruguay. Proporciona también abundante información y datos estadísticos para la elaboración de nuevos trabajos o estudios sustantivos sobre el tema. Su clara estructura facilitaría, por ejemplo, la realización de un seguimiento muy estrecho de la evolución de la región respecto del ODS 7.
    Date: 2021–12–31
  21. By: Guevara, Zeus; Espinosa, Marina; López-Corona, Oliver
    Abstract: Energy poverty describes a condition of energy-related social deprivation of households, usually associated to inadequate access to energy services, to dissatisfaction of basic energy needs, or to excessive payment for energy. Despite the research has grown significantly and substantial progress has been made, there is still theoretical divergence, and many decision-makers continue having an antiquated definition of the phenomenon, far away from recent advances. To aid advancing the field towards theoretical consensus and pushing recent research achievements into policy-making, the present paper maps the evolution of energy poverty theory through a scientometrics approach applied to 1025 records of the specialized literature in the period 1978-2020. This approach accounts for and synthesizes the information flows among and within the theoretical and authoring spaces of the field, which allows disclosing major themes and trends. The field shows two independent start points: energy poverty with focus on access and basic needs, and fuel poverty (targeting developing and European countries, respectively). The two conceptions remained mostly separated until 2010. Afterwards, their relationships became closer, hence they started influencing each other. More recently, energy justice has gained relevance in the field, leading to broader insights and serving as a conciliatory perspective. Furthermore, there are several central author clusters, which have dominated over the field, mainly focused on European thought, even though with a broader perspective. The evolution of energy poverty theory shows a convergent trend towards a consensual concept. Yet, the field is far from reaching consensus as many works that explore new paths of theoretical and methodological development are added every year . If the field wants to become more globally pertinent, authors should increase collaboration outside their main clusters, and underrepresented countries should increase their participation. The history of the field has been very exciting so far and it will become even more so.
    Date: 2022–02–16
  22. By: Ruediger Bachmann; David Baqaee; Christian Bayer; Moritz Kuhn; Andreas Löschel; Benjamin Moll; Andreas Peichl; Karen Pittel; Moritz Schularick
    Abstract: This article discusses the economic effects of a potential cut-off of the German economy from Russian energy imports. We show that the effects are likely to be substantial but manageable. In the short run, a stop of Russian energy imports would lead to a GDP decline in range between 0.5% and 3% (cf. the GDP decline in 2020 during the pandemic was 4.5%).
    Date: 2022
  23. By: Tauro, Raúl J.; Caballero, José Luis; Salinas, Miguel Ángel; Ghilardi, Adrián; Arroyo, José Manuel
    Abstract: En este documento se presenta el cálculo del potencial técnico de la energía que se puede obtener en Honduras a través de ciertos tipos de biomasa. Los potenciales fueron estimados utilizando la plataforma geoespacial para la evaluación del potencial energético de los recursos biomásicos de los países del Sistema de la Integración Centroamericana (SICA) (, una iniciativa de la CEPAL llevada a cabo en colaboración con el Centro de Investigaciones en Geografía Ambiental (CIGA) de la Universidad Nacional Autónoma de México (UNAM). Los potenciales obtenidos mediante información geoespacial para ciertos tipos de bioenergía constituyen una referencia para la toma de decisiones informada sobre el uso de ciertos recursos biomásicos como fuente de energía en Honduras, con el fin de contribuir a aumentar la participación de los recursos renovables en la matriz energética del país, en línea con el ODS 7 de la Agenda 2030 para el Desarrollo Sostenible de las Naciones Unidas.
    Date: 2021–12–30
  24. By: Nicolas Clootens (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This paper analyses the effects of flow pollution implied by the use of necessary non-renewable resources, fossil fuel for example, on overlapping generations (OLG) economies. Notably, it shows that, on the balanced growth path, flow pollution reduces the (negative) resources contribution to growth and increases resources conservation, capital accumulation, and growth. Flow pollution thus increases the ability of an economy to sustain a non-decreasing consumption path. Some of the results are due to (or magnified by) the OLG structure of the economy. In addition, the paper highlights the need for public intervention and shows that the optimal allocation may be decentralized using a tax on resources use and transfers.
    Keywords: Non-renewable Resources,Growth,Pollution,Overlapping Generations
    Date: 2021–03
  25. By: Khuc, Quy Van; Nguyen, Minh-Hoang; Le, Tam-Tri; Nguyen, Truc-Le; Nguyen, Thuy; Vuong, Quan-Hoang
    Abstract: Due to perceived risks of air pollution in urban areas, inhabitants may develop intentions of migrating to another place with better air quality. The brain drain phenomenon occurs when talented workforces leave their current living places, causing serious loss of valuable human resources. The complex interactions among demographic factors that may influence migration intention require deeper investigation. Based on the theoretical foundation of the Mindsponge framework of information processing, we employ Bayesian analysis on a dataset of 475 citizens in Hanoi, Vietnam. We found the existence of the brain drain effect for both domestic and international migration intentions induced by air pollution concerns. Regarding intentions to migrate domestically, the probability is higher for young people and males than their counterparts. Our findings suggest environmental stressors can induce changes in citizen displacement on a large scale through the psychological mechanism of personal cost-benefit evaluation. Furthermore, policymakers need to consider the long-term negative effects of air pollution on human resources and strive to build an ‘eco-surplus culture’ for improving environmental sustainability and socio-economic resilience.
    Date: 2021–11–13
  26. By: Budnitz, Hannah; Meelen, Toon; Schwanen, Tim
    Abstract: In this study, we investigate the preferences for private electric vehicle (EV) charging among households without a private residential charging option. We seek to understand which attributes of a residential neighbourhood charging service would offer an attractive substitute to charging an EV on private property overnight, as is most common among existing EV owners. Our stated choice experiment is designed to reflect preferences for parking as well as charging behaviour in order to ground the choices in trade-offs familiar to a target market representative of car drivers who are unlikely to be able to charge at home. Our findings suggest that this target population has different socio-demographic characteristics from the early adopters of EVs, and that therefore their priorities and preferences are different. Whether on-street or in a car park, the local environment in which the EV charging service sits and the experience of walking home after plugging in the vehicle is of primary importance. Some will also value the certainty of an available space over its convenience.
    Date: 2022–02–05
  27. By: Niftiyev, Ibrahim
    Abstract: Much has happened in the three countries of the South Caucasus-namely, Azerbaijan, Georgia, and Armenia-since the collapse of the Soviet Union. Political events, institutional reforms, and economic development have resulted in greater economic welfare in these countries after the painful transition period of the 1990s. However, it remains to be seen whether they have achieved any solid results or whether they still have much to accomplish. While the answer is ambiguous, each country has followed a different political, geopolitical, economic, and institutional path and achieved different economic outcomes despite their close geographical proximity to each other. This paper compares the available data on economic and institutional quality in Azerbaijan, Georgia, and Armenia to portray the overall situation in terms of changes in institutional patterns. Then, special attention is given to Azerbaijan, as the country is considered to be oil-rich and thus resource-dependent. A comparative perspective on institutional quality suggests that Georgia has been a leading country in terms of institutions and effective bureaucracy-building, despite having lower economic indicators compared to Azerbaijan. Moreover, while Armenia is positioned between Georgia and Azerbaijan in terms of institutional quality, its economic growth is similar to Georgia's. Lastly, institutional variables (e.g., control of corruption, rule of law, and government effectiveness, and human rights) in Azerbaijan are negatively correlated with oil-related variables. This result aligns with the natural resource curse and Dutch disease theories, which posit that oil boom periods in mineral-rich countries are associated with a deterioration in institutional quality, thereby leading to slower growth. Also, the results are important to build up analytical frameworks to address the Dutch disease or resource curse studies in the case of Azerbaijan in a comparative manner with oil-poor countries even if the scope is limited to the South Caucasian former Soviet Union countries.
    Keywords: South Caucasus,Azerbaijan economy,oil boom,institutional quality,correlation analysis
    Date: 2022
  28. By: Kimon Keramidas (UGA - Université Grenoble Alpes); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Adrien Bidaud (IPNO - Institut de Physique Nucléaire d'Orsay - CNRS - Centre National de la Recherche Scientifique - IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS - UP11 - Université Paris-Sud - Paris 11)
    Date: 2021–11–29
  29. By: Murau, Steffen; Haas, Armin; Guter-Sandu, Andrei
    Abstract: How to finance the Green Transition towards net-zero carbon emissions remains an open question. The literature either operates within a market-failure paradigm that calls for a Pigou tax to help markets correct themselves, or via war finance analogies that offer a ‘triad’ of state intervention possibilities: taxation, treasury borrowing, and central bank money creation. These frameworks often lack a thorough conceptualisation of endogenous credit money creation, for instance when resorting to loanable funds theory, and disregard the systemic and procedural dimensions of financing the Green Transition. We propose that ‘monetary architecture’, which perceives the monetary and financial system as a constantly evolving and historically specific hierarchical web of interlocking balance sheets, offers a more comprehensive framework to conceptualize the systemic and procedural financing challenges. Using the US as an example, we draw implications of a systemic financing view while considering a division of labor between ‘firefighting’ institutions such as the Federal Reserve and the Treasury, and ‘workhorse’ institutions such as off-balance-sheet fiscal agencies, commercial banks, and shadow banks. We argue further that financing the Green Transition must undergo three ideal-typical phases—initial balance sheet expansion, long-term funding, and possibly final contraction—that require diligent macro-financial management to avoid financial instability.
    Date: 2022–02–16
  30. By: Agarwala, Matthew; Burke, Matt; Klusak, Patrycja; Mohaddes, Kamiar; Volz, Ulrich; Zenghelis, Dimitri
    Abstract: Both the physical and transition-related impacts of climate change pose substantial macroeconomic risks. Yet, markets still lack credible estimates of how climate change will affect debt sustainability, sovereign creditworthiness and the public finances of major economies. We present a taxonomy for tracing the physical and transition impacts of climate change through to impacts on sovereign risk. We then apply the taxonomy to the UK's potential transition to net zero. Meeting internationally agreed climate targets will require an unprecedented structural transformation of the global economy over the next two or three decades. The changing landscape of risks warrants new risk management and hedging strategies to contain climate risk and minimise the impact of asset stranding and asset devaluation. Yet, conditional on action being taken early, the opportunities from managing a net zero transition would substantially outweigh the costs.
    Keywords: climate change; net zero; productivity; sovereign debt; transition risk; ES/V002740/1
    JEL: H50 H60 H62 J24 N10 Q54 Q55
    Date: 2021–12–30
  31. By: Stainforth, David A.; Calel, Raphael
    JEL: J1
    Date: 2021–12–15
  32. By: Abdón Cifuentes, Luis
    Abstract: El sector de la energía es la principal fuente de emisiones de gases de efecto invernadero (GEI) en la región. Este estudio presenta los efectos del impuesto al CO2 en el desarrollo y la operación futura de los sistemas de generación eléctrica en Chile, Costa Rica, Honduras, Nicaragua y Panamá, para el período 2030-2050. El mayor valor del estudio radica en la comparación de los efectos de los escenarios de tasas de impuesto al CO2 para cada país sobre la proyección base del sistema eléctrico. Se revisan las contribuciones determinadas a nivel nacional de cada país y se estima el efecto del impuesto sobre la capacidad instalada para el sistema eléctrico, la generación y las emisiones de GEI. Se muestra que el impuesto al carbono afecta las decisiones de inversión y operación, lo que redunda en una reducción de emisiones de GEI en todos los países.
    Date: 2022–02–04
  33. By: Phoebe Koundouri; Sylvia Schwaag Serger (Lund University, Research Policy Institute); Angelos Plataniotis
    Abstract: The European Green Deal (EGD), introduced in December 2019 by the European Commission as Europe's Growth Plan, aims to make Europe climate-neutral, resource-efficient, socially inclusive, and innovative. The UN Agenda 2030 for Sustainable Development with its 17 Sustainable Development Goals (SDGs), is a pledge to eradicate poverty and achieve sustainable development on a global scale by 2030, considering three pillars of sustainable development--economic, social, and environmental. The two frameworks share common objectives, one being the need for Innovation Policies to support transformations required to address current global challenges, like the Climate Crisis and the consequences of the COVID-19 pandemic. In this paper, we describe the interdependence between innovation policy and Agenda 2030's implementation, in line with Europe's vision for Industry 5.0, and we demonstrate how funding mechanisms like the Next Generation EU recovery package, can support countries in becoming more resilient through Green and Digital Transformations.
    Date: 2022–03–08
  34. By: -
    Abstract: Fuente casi inagotable de soluciones y oportunidades, que lamentablemente no son evidentes para todos, los océanos están en riesgo o son infrautilizados. Se trata de una realidad de suma importancia para América Latina y el Caribe ya que más del 27% de su población reside en zonas costeras, el mar ocupa más territorio que la tierra en la mayoría de los países, en particular en el Caribe, y los océanos albergan una extraordinaria biodiversidad. Sin embargo, aún no estamos en la senda que nos lleve a alcanzar las metas del Objetivo de Desarrollo Sostenible 14, relacionado con la vida submarina. La Comisión Económica para América Latina y el Caribe ha preparado el primer panorama regional para los océanos, los mares y sus recursos, con el fin de subsanar los vacíos de información y proponer ideas que fortalezcan las iniciativas de desarrollo sostenible azul. Este estudio, que sugiere indicadores y fuentes de información alternativas para algunas de las metas del ODS 14, considera la importancia de los océanos como fuente de soluciones para la mitigación del cambio climático, sirve como instrumento para los mecanismos y las iniciativas de coordinación regionales y ofrece una oportunidad de avanzar en la implementación transversal y azul de la Agenda 2030 para el Desarrollo Sostenible, con los océanos como eje fundamental.
    Date: 2022–02–10

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