nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒03‒28
39 papers chosen by
Roger Fouquet
London School of Economics

  1. The economics of immense risk, urgent action and radical change: towards new approaches to the economics of climate change By Stern, Nicholas; Stiglitz, Joseph; Taylor, Charlotte
  2. Impact of Energy Efficiency on CO2 Emissions: Empirical Evidence from Developing Countries By Mirza, Faisal Mehmood; Sinha, Avik; Khan, Javeria Rehman; Kalugina, Olga A.; Zafar, Muhammad Wasif
  3. Inefficient markets for energy efficiency - Empirical evidence from the German rental housing market By Lisa Taruttis
  4. What is Driving the EU ETS Carbon Price? By Angela Köppl; Stefan Schleicher; Jean-Yves Caneill
  5. Quantifying supply-side climate policies By Lassi Ahlvik; Jørgen Juel Andersen; Jonas Hveding Hamang; Torfinn Harding
  6. Charting the Development of a Global Market for Low-Carbon Hydrogen By Schönfisch, Max
  7. Green office buildings and sustainability: Does green human resource management elicit green behaviors? By Subhadarsini Parida; Subramaniam Ananthram; Christopher Chan; Kerry Brown
  8. Green financing of Eco-innovations: Is the Gender Inclusivity taken care of? By Saha, Tanaya; Sinha, Avik; Abbas, Shujaat
  9. "éœ€çµ¦èª¿æ•´ãƒ¡ã‚«ãƒ‹ã‚ºãƒ ã ®ç ¾æ³ ã ¨èª²é¡Œï¼šæ¬§ç±³ã ®æ¯”è¼ƒã‚’è¸ ã ¾ã ˆã Ÿ2024å¹´åº¦ä»¥é™ ã «å ‘ã ‘ã ¦ã ®è€ƒå¯Ÿã ¨æ 言" By Hiroshi Ohashi; Toshiyuki Yamamoto
  10. Knowing brown and inventing green? Incremental and radical innovative activities in the automotive sector By Julia Mazzei; Tommaso Rughi; Maria Enrica Virgillito
  11. The Political Consequences of Green Policies: Evidence from Italy By Italo Colantone; Livio Di Lonardo; Yotam Margalit; Marco Percoco
  12. The Green Paths route planning software for exposure-optimised travel By Helle, Joose; Poom, Age; Willberg, Elias S; Toivonen, Tuuli
  13. Environmental Awareness and Green Business Practices in the Small Business Sector: Empirical Evidence Using a Small and Medium-sized Enterprises Survey in Japan By Masahiko Shibamoto
  14. Creation and Application of the 2015 Input-Output Table for Analysis of Next-generation Energy Systems:Analysis of the Effects of Introducing Carbon Tax By Satoshi Nakano; Ayu Washizu
  15. Facultades jurídicas de los gobiernos nacionales y subnacionales para fijar un precio social del carbono: estudio de cinco países de América Latina By Moraga, Pilar; Durán, Valentina
  16. Stark steigende Energiepreise – Optionen für eine Entlastung von Haushalten und Unternehmen By Josef Baumgartner; Gabriel Felbermayr; Claudia Kettner; Angela Köppl; Daniela Kletzan-Slamanig; Simon Loretz; Margit Schratzenstaller
  17. Soluciones basadas en la naturaleza: el potencial de la restauración y conservación de bosques para la adaptación al cambio climático en Centroamérica By Samaniego, Joseluis; Alatorre, José Eduardo; Van Der Borght, Rafael
  18. Forecasting Market Diffusion of Innovative Battery-Electric and Conventional Vehicles in Germany under Model Uncertainty By Andreas Marcus Gohs
  19. Environmental Productivity Analysis : an Illustration with the Ecuadorian Oil Industry By Arnaud Abad; Michell Arias
  20. CO2 Emissions and Corporate Performance: Japan's Evidence with Double Machine Learning By Ryo Aruga; Keiichi Goshima; Takashi Chiba
  21. 탄소국경조정제도(CBAM)에 대한 중소기업 대응방안 연구 (A Study on Korean Smes Policies for the Carbon Border Adjustment Mechanism (CBAM)) By Park, Hyeri; Park, Ji Hyun
  22. On the Dynamics of Solid, Liquid and Digital Gold Futures By Toshiko Matsui; Ali Al-Ali; William J. Knottenbelt
  23. Superimposed Sequence Components for Microgrid Protection: A Review By Opoku, Kwasi; Pokharel, Subash; Dimitrovski, Aleksandar
  24. Definiciones del sector eléctrico para la incorporación de las energías renovables variables y la integración regional en América Latina y el Caribe By Levy, Antonio; Messina, Diego; Contreras Lisperguer, Rubén
  25. Energy use inefficiency and policy governance: the case of Central Asian countries By Taguchi, Hiroyuki
  26. Extremal Dependence in Australian Electricity Markets By Lin Han; Ivor Cribben; Stefan Trueck
  27. Unit Commitment in a Federalized Power Market: A Mixed Integer Programming Approach By Payal Mitra Author-Workplace- Elsevier, Amsterdam; Soumendu Sarkar; Tarun Mehta Author-Workplace- Centre for Energy,Environment and Water,New Delhi; Atul Kumar
  28. Extensions of the Energy PUblic Policy Model for Austria and other European countries E-(PuMA) By Berger, Johannes; Strohner, Ludwig
  29. How personality traits affect the way Gen Z faces economic and environmental sustainability: an econometric investigation By Canova, Luciano; Paladino, Giovanna
  30. Asymmetric Information and Sovereign Debt Disclosure By Bulent Guler; Yasin Kursat Onder; Temel Taskin
  31. EU in Search of a WTO-Compatible Carbon Border Adjustment Mechanism By Cecilia Bellora; Lionel Fontagné
  32. Boomtowns: Local Shocks and Inequality in 1920s California By Sarah Quincy; Rowena Gray
  33. Investor Attention to the Fossil Fuel Divestment Movement and Stock Returns By Imane Ouadghiri; Mathieu Gomes; Jonathan Peillex; Guillaume Pijourlet
  34. What is the full cost of energy for shared e-scooters? By Fabien Leurent
  35. Asymmetric effects of Eco-innovation and Human Capital development in realizing Environmental Sustainability in China: Evidence from Quantile ARDL framework By Jin, Cheng; Razzaq, Asif; Saleem, Faiza; Sinha, Avik
  36. ICT and education as determinants of environmental quality: The role of financial development in selected Asian countries By Zafar, Muhammad Wasif; Zaidi, Syed Anees Haider; Mansoor, Sadia; Sinha, Avik; Qin, Quande
  37. Covid-19 and a Green Recovery? By Aditya Goenka; Lin Liu; Manh-Hung Nguyen
  38. Multi-criteria Optimization for Parametrizing Excess Gibbs Energy Models By Forte, Ester; Kulkarni, Aditya; Burger, Jakob; Bortz, Michael; Küfer, Karl-Heinz; Hasse, Hans
  39. Price Transmission and Policies in Biofuels-Related Global Networks By Karel Janda; Ladislav Kristoufek; Barbora Schererova; David Zilberman

  1. By: Stern, Nicholas; Stiglitz, Joseph; Taylor, Charlotte
    Abstract: Designing policy for climate change requires analyses which integrate the interrelationship between the economy and the environment. We argue that, despite their dominance in the economics literature and influence in public discussion and policymaking, the methodology employed by Integrated Assessment Models (IAMs) rests on flawed foundations, which become particularly relevant in relation to the realities of the immense risks and challenges of climate change, and the radical changes in our economies that a sound and effective response require. We identify a set of critical methodological problems with the IAMs which limit their usefulness and discuss the analytic foundations of an alternative approach that is more capable of providing insights into how best to manage the transition to net-zero emissions.
    Keywords: climate change; extreme risk; market imperfections; climate policy; integrated assessment; social welfare; innovation; Grantham Institute; CCCEP; T&F deal
    JEL: J1
    Date: 2022–02–24
  2. By: Mirza, Faisal Mehmood; Sinha, Avik; Khan, Javeria Rehman; Kalugina, Olga A.; Zafar, Muhammad Wasif
    Abstract: Attaining higher level of the energy efficiency is being considered as a preferred and cost-effective policy option to achieve economic propensity, environmental sustainability and improved energy security in recent years. This drive to achieve higher energy efficiency levels is mainly motivated by higher international oil prices during last two decades, the concerns regarding energy supply security and rising CO2 emissions globally. In this background, this study decomposes energy intensity into structural and activity effects, and empirically examines their impact on CO2 emissions in environmental Kuznets curve framework for the developing economies. Second generation methodological approach is adopted. The decomposed indices reflect that energy efficiency has played a key role in decreasing energy intensity, while structural shifts have caused only a minor reduction in energy intensity. The findings suggest that energy efficiency improvements have largest influence on CO2 emissions mitigation. In developing countries as a whole, energy efficiency has positive while structural shifts have negative relation with CO2 emissions in long run. The findings presented that energy efficiency is major contributor of CO2 emissions reduction. While structural shifts in developing countries tend to increase CO2 emissions because these countries are moving towards the sectors that are producing more pollution. However, the income is one of the major contributors of CO2 emissions. While renewable energy consumption has negative and industrialization has positive impact on CO2 emissions in developing countries. The study outcomes are utilized to develop a policy framework for attaining the SDG 7 and SDG 13 in the chosen countries.
    Keywords: Energy Efficiency; Structural Shifts; Energy Intensity; Developing Economies; CO2 emissions; EKC; SDG
    JEL: Q5
    Date: 2022
  3. By: Lisa Taruttis (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen)
    Abstract: Improving the energy efficiency of residential buildings is of paramount importance to reduce CO2 emissions and hence to achieve a climate-neutral building stock – the objective of the German government for 2045. Thereby, a focus on the existing building stock is needed, as regulations for new buildings are already quite tight in terms of energy efficiency, and a large proportion of the dwelling stock of 2045 already exists today. For the important segment of rental housing, split incentives are often invoked as an impediment for energy-related investments. Yet this implicitly takes the tenant-landlord relationship as given. On the market where prospective renters meet the dwelling offers, competitive forces and rational behavior on both sides would imply that the monthly net rent should reflect (with opposite sign) differences in expected monthly heating costs – other things being equal. We test this hypothesis by specifying a hedonic price model that reflects this gross-cost-of-renting perspective and applying it on a detailed dataset including dwelling and neighborhood characteristics. As a case study, we use data for the German state of North Rhine-Westphalia, which implies that variations in regulatory and meteorological conditions are small, while large socioeconomic differences across subregions exist (e.g., in terms of purchasing power or unemployment rates). Drawing on 844,229 observations from 2014 to 2020 on a small spatial scale, we find a premium for more efficient apartments; however, it is rather small. The expected energy cost savings exceed the premium by approximately a factor of six. Rather, we find large discounts if apartments use heating technologies that are known to be inefficient. The paper explores various explanations for these outcomes, considering both landlord and renter behavior as well as institutional settings.
    Keywords: Hedonic Analysis, Rental market, Housing market, Energy Efficiency, Residential Buildings
    JEL: C21 Q40 R21 R31
    Date: 2022–02
  4. By: Angela Köppl; Stefan Schleicher (Austrian Institute of Economic Research); Jean-Yves Caneill (European Roundtable on Climate Change and Sustainable Transition)
    Abstract: The EU Emissions Trading System (EU ETS) is intended to be the flagship instrument of EU climate policy. Key aspects in this cap-and-trade scheme are the target path as well as the market price for emission allowances which results from supply and demand for these allowances. The recent pronounced price movements on the market for emission allowances raise the question what causes these fluctuations and what could be the carbon price's role for stimulating and guiding the transformation of the EU economy towards the 2030 emission target, which aims at a reduction of greenhouse gases of at least 55 percent compared to 1990 levels. This research brief collects evidence about the market stringencies that result from demand and supply and that prevailed in the third trading period between 2013 and 2020 and discusses potential drivers for the carbon price in the current trading period up to 2030. We conclude that aligning the EU ETS with the "Fit for 55" framework, the expected radical innovation efforts needed in particular for the hard-to-abate industries together with changing market behaviour due to hedging and speculative trading will likely keep the EU ETS carbon price volatile.
    Date: 2022–03–16
  5. By: Lassi Ahlvik; Jørgen Juel Andersen; Jonas Hveding Hamang; Torfinn Harding
    Abstract: What are the effects of supply-side climate policies? We use global firm-level data to estimate the impact of 130 oil-tax reforms between 2000 and 2019 on oil production, exploration and discoveries. Higher taxes are found to reduce firms’ exploration expenditures and oil discoveries. We quantify the oil market implications and show that the existing productionbased taxes, averaging at 21%, reduce the long-term emissions by 1.3-2.7 GtCO2 annually. Increasing the global tax rate would reduce emissions almost linearly, by 0.16 GtCO2 per percentage point, while further shifting the distribution of rents from consumers to producers and governments.
    Keywords: oil taxation, climate change, supply-side climate policies
    Date: 2022–02
  6. By: Schönfisch, Max (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: This paper analyses the impact of supply technology choices and costs on structures and prices on the emerging low-carbon hydrogen market using a novel, integrated natural gas and hydrogen market model. It shows that natural gas-based low-carbon hydrogen production pathways predominate in technology-neutral scenarios in 2050. In scenarios where hydrogen production is gas-based, hydrogen is produced close to the point of consumption. Natural gas prices determine local hydrogen prices. In scenarios characterised by high shares of RES-based low-carbon hydrogen production, long-distance, cross-border trade in pure hydrogen becomes an economically viable proposition due to the heterogeneous distribution of low-cost RES potentials and significant hydrogen price spreads between countries with high hydrogen demand but poor RES potentials, and countries that are well endowed with cost-competitive RES. Trade is conducted almost exclusively via pipeline. The analysis finds the most significant potential for cross-border trade in and around Europe. It suggests that it would be economical for Europe to import substantial quantities of low-carbon hydrogen from North Africa.
    Keywords: Hydrogen
    JEL: Q40 Q42 Q49
    Date: 2022–03–23
  7. By: Subhadarsini Parida (Curtin University [Perth] - PATREC - Planning and Transport Research Centre, University of South Australia [Adelaide]); Subramaniam Ananthram (Curtin University [Perth] - PATREC - Planning and Transport Research Centre); Christopher Chan (York University [Toronto], ACU - Australian Catholic University, UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes, IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes); Kerry Brown (ECU - Edith Cowan University)
    Abstract: Green buildings are synonymous with environmental sustainability; however, it is unclear what role its occupants, specifically employees, play in promoting sustainability in green office buildings. This paper proposes that Green Human Resource Management (HRM), underpinned by Social Identity Theory (SIT), can maximize the potential of green behaviors to improve employees' outcomes (e.g., job satisfaction and work-related flow) in green office buildings by creating positive workplace behaviors (i.e., green behaviors). We collected multisource data from 549 employees and 91 managers working in 17 organizations in green office buildings across Australia. We confirm the double mediation effects of Green HRM, green behaviors and organizational identification on the relationships between organizational readiness, job satisfaction and work-related flow. The paper makes theoretical contributions by advancing the concept of Green HRM and green behaviors within the realm of SIT, thus taking a multidisciplinary stance in the built environment and sustainability literatures.
    Keywords: Green HRM,Green behaviors,Sustainability,Organizational identification,Job satisfaction and work-related flow
    Date: 2021–12–20
  8. By: Saha, Tanaya; Sinha, Avik; Abbas, Shujaat
    Abstract: The OECD countries are in pursuit of the betterment of environmental quality based on their capability of Eco-innovation. This progression might pave their ways in attaining the Sustainable Developmental Goals (SDGs). Developing a green financing channel for funding is necessary for the sustenance of these projects. However, the potential impact of this project financing mechanism is conditional on the social balance in the economic system. Gender inequality being a major social issue in the OECD countries, it might pose a predicament in attaining the full potential of the green financing of eco-innovations. It is anticipated that the eco-innovation endeavors in the OECD countries are not gender-inclusive, and hence, gender inequality might limit the cognitive aptitude of these endeavors. The present study intends to assess the moderating role of gender inequality on the impact of green financing of eco-innovations for the OECD countries. Using the dynamic elasticity modeling approach, the study finds that the presence of gender inequality dampens the potential of green financing mechanisms to boost eco-innovations. The social imbalance caused by gender inequality also weakens the impacts of the structural and institutional environment to foster innovations. Based on the findings of the study, an SDG-oriented policy framework has been suggested.
    Keywords: Green finance; Eco-innovation; Gender; SDG; OECD
    JEL: Q5
    Date: 2022
  9. By: Hiroshi Ohashi (Faculty of Economics, The University of Tokyo); Toshiyuki Yamamoto (Kansai Transmission and Distribution, INC)
    Abstract: This paper focuses on the mechanism of balancing electricity market with a particular emphasis on the market reform in Japan. It compares the cost and benefit of two typical balancing mechanisms (decentralized system exemplified by Germany and centralized system by PJM in the United States). To avoid blackout, imbalance of electricity has to be resolved either by demand-side (i.e., a supplier) or supply-side (a transmission system operator), or both. This paper argues that decentralized system, which Japanese electricity market is currently aiming at, may not work well if it does not impose appropriate imbalance charges on suppliers. Otherwise, the system will be essentially degenerated to the centralized system. We consider several elements unique to Japan, including (1) the network connected solely within the domestic market; (2) high proportion of pump-up hydro in supply resources; and (3) long lead-time taken to carry fossil fuels. We conclude that we should keep the option of centralized market mechanism for future reform of balancing market in and after 2024, when the current market reform completes.
  10. By: Julia Mazzei; Tommaso Rughi; Maria Enrica Virgillito
    Abstract: The development of low emission vehicles (LEVs) in the automotive sector stands out in the literature as a typical case of technological competition between a dominant design and a set of alternative green technologies. The incremental trajectory of green technologies aimed at improving the efficiency of the internal combustion engine (ICEG) is competing with a radical trajectory targeted to the development of hybrid, electric and fuel cell vehicles (HEF). Exploiting a novel dataset of firm- and patent-level information retrieved from ORBIS-IP and containing USPTO patent applications between 2001 and 2018 in the automotive sector, we first cluster firms according to their relative patent share and degree of specialization in each trajectory, identifying a technological landscape in which they locate with distinct strategies. We then investigate the extent to which different stocks and combinations of knowledge might explain such heterogeneity in innovative efforts and positioning in the landscape. Our results suggest that a stock of ''brown'' knowledge closely related to ''green'' knowledge proves to be valuable for firm's success in each trajectory. Moreover, firms with a broad array of different knowledge sources are capable of reaching a leadership position in the technological landscape.
    Keywords: Low emission vehicles; relatedness; diversification; knowledge.
    Date: 2022–03–18
  11. By: Italo Colantone; Livio Di Lonardo; Yotam Margalit; Marco Percoco
    Abstract: For many governments enacting green policies is a priority, but these often entail substantial and uneven costs on citizens. How does the introduction of green policies affect voting? We study this question in the context of a major ban on polluting cars introduced in Milan. The policy was strongly opposed by the right-wing populist party Lega, portraying it as a “radical-chic-leftist†initiative penalizing common people. We show that owners of banned vehicles—who incurred a median loss of €3,750—were significantly more likely to vote for Lega in the subsequent elections. This electoral shift does not stem from increased environmental skepticism, but rather from the perceived unfairness of the policy and its pocketbook implications. In fact, recipients of compensation from the local government were not more likely to switch to Lega. The findings underscore that addressing the distributive consequences is key for advancing green policies that are politically sustainable.
    Keywords: environmental politics; green policies; distributional consequences; compensation mechanisms
    Date: 2022
  12. By: Helle, Joose; Poom, Age; Willberg, Elias S; Toivonen, Tuuli
    Abstract: Green Paths is a prototype of route planning software for finding exposure-optimised routes for active travel. It incorporates external data on environmental exposures, including traffic noise levels, air quality, and street-level greenery into the street and paths network produced by the OpenStreetMap project. Written in the Python programming language, the software applies a novel environmental impedance function in the least cost path routing to find exposure-optimised routes. Routes for externally defined origin-destination pairs can be queried via a RESTful API. The API returns alternative routes equipped with rich exposure data. The published version of the software has been applied in population level environmental exposure assessment and in an end-user-oriented web-based route planner application designed for use in the Helsinki Metropolitan Area.
    Date: 2021–10–24
  13. By: Masahiko Shibamoto (Research Institute for Economics and Business Administration and Center for Computational Social Science, Kobe University, JAPAN)
    Abstract: This study argues that the heterogeneity in environmental awareness among business owners is a pivotal component in characterizing the implementation of green business practices in the small business sector. Specifically, using a large-scale survey of small and medium-sized enterprises (SMEs) throughout Japan, we show a gap between environmental awareness and green business practices in the small business sector; that is, SMEs are aware of environmental issues, but they do not practice green business to a large extent. Further, we quantitatively show that the environmental awareness of SMEs already practicing or attempting to practice green business tends to be greater than that of SMEs not practicing green business. Our empirical results support the link between environmental awareness as a business opportunity and green business practices. However, there is less evidence that environmental awareness divorced from management, such as the need to pass on a sustainable society to future generations, would be involved with green business practices in the small business sector. Our findings advocate that policymakers looking to strengthen environmental initiatives in the small business sector need to direct SMEs to build awareness of environmental issues related to their businesses.
    Keywords: Green business practices; Environmental awareness; Small business sector; Survey data; Japan
    JEL: L21 Q56
    Date: 2022–03
  14. By: Satoshi Nakano (Faculty of Economics, Nihon-Fukushi University, Japan.); Ayu Washizu (Faculty of Social Sciences, Waseda University, 1-6-1 Nishiwaseda, Shinjuku-ku, Tokyo 169-8050, Japan.)
    Abstract: The Institute for Economic Analysis of Next-Generation Science and Technology, Waseda University, has prepared the Input-Output Table for Analysis of Next-generation Energy Systems (IONGES) and has included the renewable energy sectors in the Input-Output Table of Japan’s Ministry of Internal Affairs and Communications (MIC). To date, we have prepared tables for 2005 and 2011 (hereafter 2005 Table and 2011 Table, respectively) and associated reports have been prepared. We prepared an interregional table and a table with the hydrogen-related sector added to the 2005 Table. Following these tables, the 2015 IONGES was developed and summarized in this study. Carbon pricing (CP), such as a carbon tax, leads to the development of a sustainable low-carbon society, and a precise analysis of the impact of the system on each sector of the economy is essential for the design of the CP system. As an applied analysis using the 2015 IONGES, the introduction of a carbon tax as a global warming countermeasure (GWC) tax based on existing energy-related tax systems was considered, and the effect of the use of renewable energy on the new tax burden was estimated.
    Keywords: Input-Output analysis, Renewable energy, Carbon pricing, Energy-related taxes, Input- Output Table for Analysis of Next-generation Energy Systems (IONGES)
    Date: 2022–03
  15. By: Moraga, Pilar; Durán, Valentina
    Abstract: En este estudio se presenta un análisis normativo de los sistemas nacionales de inversión pública y su ámbito de aplicación para la definición del precio social del carbono, así como su posible aporte a las contribuciones determinadas a nivel nacional, en cinco países seleccionados: Chile, Costa Rica, Honduras, Nicaragua y Panamá. Se revisan las competencias de los órganos responsables del sistema nacional de inversión pública a nivel nacional y subnacional. A partir del análisis realizado se concluye que, en todos los casos, los órdenes jurídicos consideran un marco legal de presupuesto público e inversión pública, en términos normativos e institucionales muy claros a nivel nacional y subnacional. Sin embargo, en lo referente a evaluación social de proyectos de inversión pública e incorporación de precios sociales y, en particular, del precio social del carbono, es posible observar distintos niveles de desarrollo entre los países. En materia de incorporación del precio social del carbono en la evaluación de la inversión pública, se identificaron desafíos que guardan relación con el marco legal, el marco institucional y la transparencia.
    Date: 2021–10–22
  16. By: Josef Baumgartner; Gabriel Felbermayr (WIFO); Claudia Kettner; Angela Köppl; Daniela Kletzan-Slamanig (WIFO); Simon Loretz; Margit Schratzenstaller
    Abstract: Die Energiepreise sind bereits 2021 im Zuge der wirtschaftlichen Erholung nach dem COVID-19-bedingten Wirtschaftseinbruch deutlich angestiegen. Angesichts der Kriegshandlungen in der Ukraine gewinnen weitere über die bereits in den letzten Wochen hinaus beschlossenen Maßnahmen zur Entlastung der Konsumentinnen und Konsumenten sowie der Unternehmen an Dringlichkeit. Wie in vielen anderen Ländern werden derzeit auch in Österreich eine Reihe von Entlastungsoptionen diskutiert. Besonders intensiv wurden in der jüngsten öffentlichen Debatte zwei Maßnahmen gefordert: die Verschiebung der für Juli 2022 geplanten Einführung einer CO 2 -Bepreisung sowie die Reduktion des Mehrwertsteuersatzes für Energie. Diese beiden Optionen stellen sich aber aus mehreren Gründen als wenig tauglich dar. Wesentlich geeigneter sind gezieltere und treffsicherere Maßnahmen zur Abfederung des Kaufkraftverlustes.
    Keywords: Energiepreise, Inflation, Entlastungsmaßnahmen, Mehrwertsteuer, CO2-Bepreisung
    Date: 2022–03–15
  17. By: Samaniego, Joseluis; Alatorre, José Eduardo; Van Der Borght, Rafael
    Abstract: En este estudio se evalúa empíricamente cómo la cobertura boscosa puede reducir el impacto de las lluvias extremas en la actividad económica de Centroamérica. Para esos fines, se construyó un panel de datos usando observaciones de la tierra provenientes de imágenes satelitales. Se midió la actividad económica a través de las luces nocturnas y se caracterizaron las lluvias extremas usando series de lluvias diarias con alta resolución espacial. Finalmente, se evaluó y mapeó la cobertura boscosa y vegetal usando el índice de vegetación de diferencia normalizada (NDVI).
    Date: 2021–12–31
  18. By: Andreas Marcus Gohs (University of Kassel)
    Abstract: In this research paper accuracies (percentage errors, MAPE) of different procedures (growth, ARIMA(X), exponential smoothing and deterministic trend models) in forecasting new passenger car registrations in Germany are presented. It is found that the Logistic Growth Model provides rather accurate predictions of the number of new registrations (total number, which still refers to predominantly conventional gasoline and diesel vehicles) for the forecast period of the study. However, the Bass diffusion model is recommended for predicting the new registration numbers of the innovative battery-electric technology. Furthermore, it is exemplarified that the Bass coefficient of imitation q, in contrast to the coefficient of innovation p, is robust to a variation of the assumed market potential M. Therefore, q should also contribute to a stable short-term forecast (given a variation of M), provided that a period in the early phase of the product life cycle is considered. The study also shows that with the bulk of the procedures, percentage forecast errors are obtained which lie in a narrow margin for the established product passenger car, but not for the innovative battery-electric propulsion technology. So while the careful selection of the forecasting model seems rather negligible for the established product, it is essential for the innovative product. In addition, new registration figures in the German federal states were forecasted, which in turn were used to calculate pooled forecasts for Germany. In general, no increase in forecast accuracy was achieved by means of pooling compared with direct forecasting (i.e. from the national time series).
    Keywords: Growth Curves, Bass Diffusion Model, Pooled Forecasting, Model Uncertainty, Electric Vehicles
    JEL: C22 C53 O33
    Date: 2022
  19. By: Arnaud Abad (BETA - Bureau d'Économie Théorique et Appliquée - UNISTRA - Université de Strasbourg - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Michell Arias (UPVD - Université de Perpignan Via Domitia)
    Abstract: In this paper, environmental productivity variation is analysed through the pollution-adjusted Malmquist and Hicks-Moorsteen productivity indices. These productivity indices are defined as combination of multiplicative pollution-adjusted distance functions. Non convex pollution-generating technology is assumed to estimate the pollution-adjusted Malmquist and Hicks-Moorsteen productivity measures. The main sources of the pollution-adjusted productivity change are displayed. An empirical illustration is provided by considering a sample of 20 Ecuadorian oil companies over the period 2012-2018. The results are estimated through a non parametric analytic framework.
    Keywords: Non Convexity,Ecuadorian Oil industry,Environmental Efficiency and Productivity Indices,Pollution-generating Technology
    Date: 2022–02–15
  20. By: Ryo Aruga (Associate Director and Economist, Institute for Monetary and Economic Studies, Bank of Japan (E-mail:; Keiichi Goshima (Assistant Professor, School of Commerce, Waseda University, and Economist, Institute for Monetary and Economic Studies, Bank of Japan (currently, UTokyo Economic Consulting and Adjunct Researcher, Research Institute of Business Administration, Waseda University, E-mail:; Takashi Chiba (Economist, Institute for Monetary and Economic Studies, Bank of Japan (currently, Sumitomo Mitsui Banking Corporation, E-mail:
    Abstract: This paper empirically examines the relationship between CO2 emissions and corporate performance in terms of long-term performance, short-term performance, and cost of capital, using available firm-level data in the First Section of the Tokyo Stock Exchange from FY2011 to FY2019. To address potential biases in previous empirical studies, we employ double machine learning, which is one of the semiparametric models introduced by Chernozhukov et al. [2018], for our empirical analysis. We find that corporations with lower CO2 emissions have (i) better long-term corporate performance and (ii) lower cost of equity. These results suggest that investors estimate that corporations with lower CO2 emissions have lower business risks, setting their risk premium to be low, which results in higher market value of such corporations. In addition, our analysis indicates that corporations with lower CO2 emissions have higher short-term performance and lower cost of debt, but also shows that the results of previous studies of these relationships may contain biases and should be evaluated with caution.
    Keywords: CO2 Emissions, Corporate Performance, Double Machine Learning
    JEL: G30 M14 Q54
    Date: 2022–02
    Abstract: Korean Abstract: 이 보고서는 탄소국경조정제도(CBAM)의 영향을 중소기업 측면에서 분석하여 CBAM에 대한 중소기업의 대응방안과 정책지원 방향을 제시한다. CBAM 대상품목의 수출 현황과 국내 기업분포를 통해 CBAM으로 인한 국내 중소기업의 영향범위를 측정하고, CBAM에 대한 산업별 취약성을 평가하며, 중소기업 수출에 내재된 탄소배출량을 추산하였다. 아울러 최근의 해외 중소기업 탄소중립정책 사례 분석을 통해 참고할 만한 유용한 사례를 발굴하여 제시한다. English Abstract: In July 2021, the EU announced the Carbon Border Adjustment Mechanism (CBAM), which obligates importers to purchase certificates corresponding to the emissions embedded in imported products. Implementation of the CBAM will have a negative effect on the Korean economy, which is highly dependent on trade and carbon-intensive industries. Another point of particular concern lies in that domestic SMEs will also be affected by the CBAM directly or indirectly. Therefore, this study examines the impact of the CBAM on SMEs in Korea, and evaluates different industries for their vulnerability to the CBAM. Implications for government policies and strategies for SMEs to effectively respond to CBAM are drawn. This study differs from previous studies in that it analyzes the impact of the CBAM from the perspective of SMEs. Few domestic studies have analyzed the impact of the CBAM on SMEs. This study examines various aspects of the CBAM, including statistical analysis of vulnerabilities to the CBAM in the area of SMEs, and case studies of carbon neutrality support policies for SMEs in major countries. Various analysis methods are attempted, such as measuring the export status of SMEs’ CBAM target items and domestic SMEs' distribution of CBAM target industries, evaluating the SMEs’ vulnerability to the CBAM by sectors, and measuring carbon emissions embedded in SMEs’ exports. Moreover, overseas carbon neutrality support policies for SMEs are investigated to identify recent policy trends in major countries and learn from benchmarking cases. (the rest omitted)
    Keywords: Korea; SMEs; CBAM
    Date: 2021–12–30
  22. By: Toshiko Matsui; Ali Al-Ali; William J. Knottenbelt
    Abstract: This paper examines the determinants of the volatility of futures prices and basis for three commodities: gold, oil and bitcoin -- often dubbed solid, liquid and digital gold -- by using contract-by-contract analysis which has been previously applied to crude oil futures volatility investigations. By extracting the spot and futures daily prices as well as the maturity, trading volume and open interest data for the three assets from 18th December 2017 to 30th November 2021, we find a positive and significant role for trading volume and a possible negative influence of open interest, when significant, in shaping the volatility in all three assets, supporting earlier findings in the context of oil futures. Additionally, we find maturity has a relatively positive significance for bitcoin and oil futures price volatility. Furthermore, our analysis demonstrates that maturity affects the basis of bitcoin and gold positively -- confirming the general theory that the basis converges to zero as maturity nears for bitcoin and gold -- while oil is affected in both directions.
    Date: 2022–02
  23. By: Opoku, Kwasi; Pokharel, Subash; Dimitrovski, Aleksandar
    Abstract: The new challenge to protective relaying in distribution networks (DNs), due to the integration of distributed generation (DG), has become a significant area of focus and research for power engineers. To achieve high penetration of DGs in the DNs, new methods of achieving desired sensitivity, selectivity, and security of fault detection and coordination must be adopted. Recent literature shows that superimposed sequence components offer great potential in fault detection and coordination in such DNs. This paper reviews different proposed solutions to fault detection and coordination in microgrids using superimposed sequence quantities. It also includes a discussion on their application methods, unique advantages, and limitations. This way, it contributes to existing reviews on microgrid protection by presenting the unique considerations necessary for the superimposed method, as well the way conventional protection schemes can be improved for microgrid protection using this method. Results from applying a new approach for detecting faults based on superimposed negative sequence admittance is presented to demonstrate the application of superimposed quantities in fault detection.
    Keywords: Active distribution network, distributed generation (DG), microgrid protection, superimposed sequence component, low voltage ride-through (LVRT)
    JEL: L94 Q40 Q42
    Date: 2021–12–24
  24. By: Levy, Antonio; Messina, Diego; Contreras Lisperguer, Rubén
    Abstract: Este estudio forma parte de las actividades realizadas en el marco del Foro Técnico Regional de Planificadores Energéticos de la Comisión Económica para América Latina y el Caribe (CEPAL). Su objetivo es proporcionar a los países de la región las definiciones claves para poder avanzar en la adopción de las energías renovables y el necesario proceso de cooperación e integración eléctrica de la región. Asimismo, se incluyen ejemplos de la aplicación de dichas definiciones a nivel institucional en ocho países de la región.
    Date: 2021–12–31
  25. By: Taguchi, Hiroyuki
    Abstract: This study aims to examine the energy-use inefficiency in the Central Asian (CA) countries by using the analytical framework of the energy-environmental Kuznets curve (EEKC). This study’s contribution to the literature is to explicitly target the CA countries in the EEKC analysis in the first place. The empirical analyses identified the energy-use inefficiency of Turkmenistan, Uzbekistan, and Kazakhstan, and could show the contributions of the weak policy governance as well as the natural resource abundance to their energy-use inefficiency. This analytical result could also be endorsed by the Uzbekistan case. Thus, the policy implication is that there would be much room for these countries to improve their energy-use efficiency by enhancing their performances of energy policies.
    Keywords: energy-use inefficiency, policy governance, Central Asia, energy-environmental Kuznets curve, and Uzbekistan
    JEL: O53 Q43
    Date: 2022–02
  26. By: Lin Han; Ivor Cribben; Stefan Trueck
    Abstract: Electricity markets are significantly more volatile than other comparable financial or commodity markets. Extreme price outcomes and their transmission between regions pose significant risks for market participants. We examine the dependence between extreme spot price outcomes in the Australian National Electricity Market (NEM). We investigate extremal dependence both in a univariate and multivariate setting, applying the extremogram developed by Davis and Mikosch (2009) and Davis et al. (2011, 2012). We measure the persistence of extreme prices within individual regional markets and the transmission of extreme prices across different regions. With both 5-minute and 30-minute price data, we find that extreme prices are more persistent in the market with a higher share of intermittent renewable energy. We also find that persistence of extreme prices is more prevalent in more concentrated markets. We also show significant extremal price dependence between different regions, which is typically stronger between physically interconnected markets. The dependence structure of extreme prices shows asymmetric and time-dependent patterns. Applying the extremograms, we further show the effectiveness of the Australian Energy Market Commission's 2016 rebidding rule with respect to reducing the share of isolated price spikes that are often considered as an indication of strategic bidding. Our results provide important information for hedging decisions of market participants and for policy makers who aim to reduce market volatility and extreme price outcomes through effective regulations which guide the trading behaviour of market participants as well as improved network interconnections.
    Date: 2022–02
  27. By: Payal Mitra Author-Workplace- Elsevier, Amsterdam; Soumendu Sarkar (Department of Economics, Delhi School of Economics); Tarun Mehta Author-Workplace- Centre for Energy,Environment and Water,New Delhi; Atul Kumar (School of International Studies,Jawaharlal Nehru University, New Delhi)
    Abstract: We study the features of the Indian power system and deconstruct the factors that impede its transition to more optimised market mechanisms. We also present an adaptation of unit commitment from literature, tailored to India's characteristics. Such a model enables India-like power systems to transition to state-of-the-art combinatorial optimisation solution techniques such as Mixed Integer Liner Programming. Further, by simulating the unit commitment problem for the state of Rajasthan with actual data from the year 2015-16, we demonstrate the possibility of significant savings for a central planner in procuring and scheduling adequate power to meet its demands securely. Key Words: Unit Commitment, Power Markets, Energy, Electricity, Mathematical Programming JEL Codes: C61, Q41, Q42
    Date: 2022–03
  28. By: Berger, Johannes; Strohner, Ludwig
    Abstract: This Research Paper contains a documentation of extensions of the dynamic computable general equilibrium model PuMA to implement energy and greenhouse gas emissions (GHG). The documentation of the PuMA model is published in EcoAustria Research Paper No. 11. Up to now, the model was applied to analyse economic, labour market and public finance effects of different policy reforms, structural changes and other important policy questions. PuMA is similar to the EU Labour Market Model (EU-LMM), which was also developed by the authors and is used by the Directorate General Employment, Social Affairs & Inclusion of the European Commission.1 E-PuMA extends the model by implementing important channels of energy demand of private households and firms as well as GHG emissions. E-PuMA implements additional demand nests for private households. This allows to model the impact of energy price changes on demand and various policy reforms like CO2 related prices. In addition to final goods and investment goods firms additional types of firms are implemented. Electricity firms produce electricity by different kinds of energy inputs and corresponding capital stock and provide electricity to private households and the energy firms. Energy firms combine different energy inputs together with capital and electricity to produce energy provided to final goods firms. Final goods firms demand energy and decide about abatement effort with respect to non-energy-related emissions. Section 2 describes extensions related to private households, Section 3 extensions related to firms, Section 4 describes changes related to functional forms, and Section 5 discusses relevant literature for the calibration of the model.
    Date: 2022
  29. By: Canova, Luciano; Paladino, Giovanna
    Abstract: Before the coronavirus disease (COVID-19) pandemic, awareness of the relevance of sustainability issues and climate change had increased significantly, especially among the younger generation. The COVID-19 pandemic and the related shutdown of many economic activities raised concerns about the conservation of biodiversity and the environment and about the state of personal economic well-being. Theoretically, at least two associations between sustainability and personal financial habits are relevant: a) they concern the decision-making process regarding the use of scarce resources, and b) they need a medium/long-term horizon as they exert their impacts over time. In this study, we examined how Generation Z deals with issues of sustainability and money management. By using the technique of the principal components, two synthetic indexes were derived on the basis of a set of multivariate information from a questionnaire that investigated the approach to the issue of sustainability by a representative sample of 400 girls aged between 13 and 18 years. The GREEN INDEX represents environmental practices, and the MONEY INDEX represents habits in money management. They are used as dependent variables to detect how socio-demographic factors and personality elements influence the degree of awareness. Our results show the importance of character traits at both levels of awareness and the strong association between attention to money management and a sense of responsibility toward the environment, highlighting the possibility that financial education can set in motion a virtuous circle.
    Keywords: Sustainability, Environment, Financial Education, Gen Z
    JEL: G10 J53 Q50
    Date: 2022–01
  30. By: Bulent Guler (Indiana University Bloomington); Yasin Kursat Onder (Ghent University); Temel Taskin (Bank of Canada)
    Abstract: This paper studies sovereign debt and default dynamics under alternative disclosure arrangements in a sovereign default model incorporated with asymmetric information and long-term debt. Government is assumed to have access to both international bond financing and non-Paris club lending (a hidden and collateralized debt). Our results show that with a shift from partial disclosure to full disclosure regime governments can borrow at more favorable terms conditional on the same levels of debt and income. However, due to lack of commitment, favorable bond prices encourage governments to borrow more and experience higher default rates in the long-run equilibrium of the full disclosure regime. As a result, the switch from partial disclosure to full disclosure generates small welfare losses contrary to conventional wisdom.
    Keywords: Hidden debt, Sovereign debt, Sovereign default, Collateralized debt, Asymmetric information, Debt disclosure
    Date: 2022–03
  31. By: Cecilia Bellora; Lionel Fontagné
    Abstract: To meet the targets of the EU’s ”Fit for 55” package, the European Commission proposes to implement a Carbon Border Adjustment Mechanism (CBAM). The CBAM is firstly intended to avoid carbon leakages, but it also deals with the thorny issue of the compliance by European producers in carbon-intensive industries. In addition, its design, as voted by the European Council on March 15, 2022, questions the compatibility of the CBAM with World Trade Organization (WTO) rules. The CBAM puts a price on carbon contained in imported products whose production-related emissions have not been taxed (or not at the same level as in the European Union) by the exporter country, in order to offset the difference in carbon prices at the border. This paper aims to quantify the economic and environmental impacts of different CBAM design choices with the aim of complying with WTO rules. Different from the previous literature, we evaluate the various options with a dynamic general equilibrium model featuring imperfect competition, global value chains, green-house gas emissions and endogenous price of emission quotas. We show that CBAM is effective in reducing carbon leakages. But its design leads to an increase in the price of carbon quotas in the European Emission Trading System (ETS) market. Losses in competitiveness on export markets are expected, also for downstream sectors not covered by the EU ETS nor the CBAM. Eventually, offsetting the difference in carbon prices at the border comes at a cost to the enforcing jurisdiction, suggesting that the CBAM was not designed as a beggar-thy-neighbour policy.
    Keywords: Carbon Border Adjustment;International Trade;Climate Change
    JEL: F14 F13 F17 Q56
    Date: 2022–03
  32. By: Sarah Quincy (Vanderbilt University); Rowena Gray (University of California, Merced)
    Abstract: The 1920s in the United States were a time of high income and wealth growth and rising inequality, up to the peak in 1929. It was an era of technological innovations such as electrification as well as booms in consumer durables, housing, and asset markets. The degree to which these skill-biased opportunities shaped property wealth inequality depends on how local and macro-level industrial shocks were capitalized into real estate values. We uncover the pattern for California, a state where shocks in oil, housing and stocks were large, and which has annual data on city-level property values and population counts. We show that electricity both increased values and reduced inequality in property values, while other booms had more short-lived and localized effects.
    Keywords: wealth inequality, booms, Roaring 20s
    JEL: N12 N33 N92 R31
    Date: 2022–03
  33. By: Imane Ouadghiri; Mathieu Gomes (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020]); Jonathan Peillex; Guillaume Pijourlet
    Abstract: This study investigates whether investor attention to the fossil fuel divestment (FFD) movement is related to the stock returns of firms involved in extracting fossil fuels. We consider three complementary indicators of investor attention to the FFD movement: (1) the US weekly Google Search Volume Index on the topic "fossil fuel divestment," (2) the US weekly media coverage of fossil fuel divestment, and (3) the number of weekly visits to the "fossil fuel divestment" page on Wikipedia. Based on a sample of weekly returns on 1,850 US firms over the period 2012-2020, our econometric estimations report a positive relationship between investor attention to FFD and excess stock returns for US fossil fuel-related firms. Therefore, contrary to what the FFD campaigners might expect, the stigmatization of the fossil fuel industry does not drive down the stock returns on fossil fuel-related firms.
    Keywords: fossil fuel-related firms,investor attention,stock returns,fossil fuel divestment
    Date: 2022–01–29
  34. By: Fabien Leurent (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: Nous considérons un service de mobilité partagée par trottinettes électriques, en self-service et free-floating, en postulant de plus que les batteries sont amovibles et que la recharge en énergie procède par des tournées de "juicers" pour échanger les batteries. Nous formulons analytiquement le coût de production d'un tel service et nous l'optimisons en jouant sur la production des tournées de recharge, sur la profondeur de décharge et la capacité de la batterie, ainsi que le modèle de trottinette (parcours de vie, taux de consommation). Une étude numérique permet de situer l'ordre de grandeur des différents postes de coût.
    Keywords: trottinettes partagées,consommation d'énergie,batteries amovibles,tournées de recharge,cycle de vie,coût de production,modèle mathématique
    Date: 2022–01–18
  35. By: Jin, Cheng; Razzaq, Asif; Saleem, Faiza; Sinha, Avik
    Abstract: The present study investigates the dynamic and asymmetric impacts of eco-innovation and human capital development on ambient pollution by validating the Environment Kuznets Curve (EKC) hypothesis in China from 1988Q1 to 2018Q4. The findings confirm non-normality and structural breaks in data. Thus, Quantile Autoregressive Distributive Lag (QARDL) model and Granger Causality-in-Quantiles are applied to address non-linearity and structural breaks. The long-run results exhibit that eco-innovation and human capital have a significant negative relationship with carbon emissions, mainly from lower (0.05) to medium (0.5) quantiles and medium (0.50) to higher (0.95) emissions quantile. Moreover, economic growth contributes to higher emissions across all quantiles. In contrast, the square of economic growth has a significant negative association with emissions, confirming the validity of EKC from medium (0.40) to higher (0.95) quantiles. Lastly, Granger causality confirms a two-way causality between eco-innovation, human capital, and carbon emissions, and a one-way causality from human capital, economic growth to carbon emissions. These findings offer valuable policy recommendations.
    Keywords: Eco-innovation; Human capital; Environmental sustainability; Carbon emissions; Quantile ARDL
    JEL: Q5
    Date: 2021
  36. By: Zafar, Muhammad Wasif; Zaidi, Syed Anees Haider; Mansoor, Sadia; Sinha, Avik; Qin, Quande
    Abstract: Rising environmental concerns due to extensive energy consumption and carbon emission in the process of developing information communication and technology (ICT) cannot be overshadowed by its significant contribution in economic growth. This study is an attempt to explore long run influences of ICT and education on environmental quality. By incorporating the role of financial development, energy consumption and income into the function of carbon emissions, the results obtained by the continuously updated and fully modified (Cup-FM) test indicate that economic growth, education and energy consumption stimulates carbon emissions intensity in Asian countries (1990-2018). The second-generation unit root tests and Lagrange Multiplier (LM) bootstrap cointegration method investigate stationary properties and cointegration. Our findings suggest that investment in technology and financial markets require policymakers' attention as we have empirically established long-run inverse impacts of financial development and ICT on carbon emissions. Furthermore, the study suggests a focus on clean energy policy as the rising pollution levels due to fossil fuel hampers long-run productivity. This paper contributes to the existing literature by proposing that ICT-led economic policies may help solve environmental quality and economic growth issues.
    Keywords: Environmental Quality; ICT; Education; Financial development; Economic growth
    JEL: Q5
    Date: 2022
  37. By: Aditya Goenka (University of Birmingham [Birmingham]); Lin Liu (University of Liverpool); Manh-Hung Nguyen (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: Preliminary evidence indicates that pollution increases the severity and likelihood of COVID-19 infections similar to many other infectious diseases. This paper models the inter-action of pollution and disease preventive actions, either pharmaceutical or non-pharmaceutical interventions, on transmission of infectious diseases in a neoclassical growth framework. There are two externalities – households do not take into account how their actions affect disease transmission, and productive activity results in pollution which increases the likelihood of in-fections. The disease dynamics are modeled to be of SIS type. We study the difference in health and economic outcomes between the decentralized economy, where households do not internalize externalities, and socially optimal outcomes, and characterize the taxes and subsi-dies that decentralize the latter. Thus, we examine the question whether there are sufficient incentives to reduce pollution, at both private and public levels, once its effects on disease transmission is considered. In competitive outcomes, pollution increases with increased pro-ductivity. The socially efficient outcome has higher pollution than a competitive outcome, despite increase in abatement, as the effect of higher productivity and larger labor supply dom-inates. The results question the hopes of a Green Recovery.
    Keywords: Dynamic Pigovian taxes,Green Recovery,Infectious disease,Pollution: environmental policy,Covid-19
    Date: 2021–11
  38. By: Forte, Ester; Kulkarni, Aditya; Burger, Jakob; Bortz, Michael; Küfer, Karl-Heinz; Hasse, Hans
    Abstract: Thermodynamic models contain parameters which are adjusted to experimental data. Usually, optimal descriptions of different data sets require different parameters. Multi-criteria optimization (MCO) is an appropriate way to obtain a compromise. This is demonstrated here for Gibbs excess energy (GE) models. As an example, the NRTL model is applied to the three binary systems (containing water, 2-propanol, and 1-pentanol). For each system, different objectives are considered (description of vapor-liquid equilibrium, liquid-liquid equilibrium, and excess enthalpies). The resulting MCO problems are solved using an adaptive numerical algorithm. It yields the Pareto front, which gives a comprehensive overview of how well the given model can describe the given conicting data. From the Pareto front, a solution that is particularly favorable for a given application can be selected in an instructed way. The examples from the present work demonstrate the benefits of the MCO approach for parametrizing GE-models.
    Date: 2021–10–26
  39. By: Karel Janda (Charles University, Faculty of Social Sciences, Institute of Economic Studies & Prague University of Economics and Business, Faculty of Finance and Accounting); Ladislav Kristoufek (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Barbora Schererova (Prague University of Economics and Business, Faculty of Finance and Accounting); David Zilberman (University of California, Berkeley)
    Abstract: This article investigates the connections between the prices of biofuels and many traded commodities and other relevant assets in Europe, USA and Brazil. The analysis uses a comprehensive dataset covering price data for 38 traded titles over the period 2003-2020. We utilize the minimum spanning tree approach to identify price connections in a complex trading system. Our analysis of mutual price connections discovers the major defining features of world leading biofuels markets during the period since the ground-breaking policy initiatives of the 2003 EU Transport Fuel Directive and Energy Taxation Directive. We provide characteristics of main bioethanol and biodiesel markets with respect to government policies and technical and local features of the production and consumption of particular biofuels. Despite a relatively long and dynamically evolving history of biofuels, we find that the biofuels systems in USA, Brazil and Europe do not converge towards the same pattern of relations among fossil fuels, biofuels, agricultural commodities and financial assets.
    Keywords: ethanol; biodiesel; minimum spanning tree; energy and agricultural policies
    JEL: C38 Q16 Q42
    Date: 2022–03

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