nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒04‒04
33 papers chosen by
Roger Fouquet
London School of Economics

  1. Carbon pricing and COVID-19: Policy changes, challenges and design options in OECD and G20 countries By Daniel Nachtigall; Jane Ellis; Sofie Errendal
  2. Climate Uncertainty and Carbon Emissions Prices: The Relative Roles of Transition and Physical Climate Risks By Serda Selin Ozturk; Riza Demirer; Rangan Gupta
  3. A Truck Routing Model to Reduce Fuel Consumption and Emissions while Accounting for Parking Availability and Working Hours Constraints By Vital, Filipe; Ioannou, Petros
  4. State or market: Investments in new nuclear power plants in France and their domestic and cross-border effects By Zimmermann, Florian; Keles, Dogan
  5. CO2 Emissions from air transport: A near-real-time global database for policy analysis By Daniel Clarke; Florian Flachenecker; Emmanuelle Guidetti; Pierre-Alain Pionnier
  6. Local Incentives and Electric Vehicle Adoption By Halse, Askill H.; Hauge, Karen E.; Isaksen, Elisabeth T.; Johansen, Bjørn G.; Rauum, Oddbjørn
  7. Climate Crisis/Housing Crisis: How can social landlords reconcile safety and energy saving? By Ellie Benton; LSE Housing and Communities; Anne Power
  8. The effect of flow-based market coupling on cross-border exchange volumes and price convergence in Central-Western European electricity markets By Marten Ovaere; Michiel Kenis; Kenneth Van den Bergh; Kenneth Bruninx; Erik Delarue
  9. How Constant is Constant Elasticity of Substitution? Endogenous Substitution between Clean and Dirty Energy By Ara Jo; Alena Miftakhova
  10. Value of co-benefits from energy saving ventilation systems—Contingent valuations on Swiss home owners By Nina Boogen; Massimo Filippini; Adan L. Martinez-Cruz
  11. Risk Transmission between Green Markets and Commodities By Naeem, Muhammad Abubakr; Karim, Sitara; Jamasb, Tooraj; Nepal, Rabindra
  12. Migration, Remittances and Clean Fuel Usage in Sri Lanka: The Mediating Role of Household Wealth By J.M.D. Sandamali Wijayarathne; Gazi M. Hassan; Mark J. Holmes
  13. Transparency principle for carbon emissions drives sustainable finance By Chris Kenyon; Mourad Berrahoui; Andrea Macrina
  14. Electrifying Nigeria: the Impact of Rural Access to Electricity on Kids' Schooling By Enrico Nano
  15. Measuring environmental policy stringency in OECD countries: An update of the OECD composite EPS indicator By Tobias Kruse; Antoine Dechezleprêtre; Rudy Saffar; Leo Robert
  16. How manufacturing firms respond to energy subsidy reforms? By Zarepour, Z.; Wagner, N.
  17. Calculations of gaseous and particulate emissions from German agriculture 1990–2020 : report on methods and data (RMD) submission 2022 By Vos, Cora; Rösemann, Claus; Haenel, Hans-Dieter; Dämmgen, Ulrich; Döring, Ulrike; Wulf, Sebastian; Eurich-Menden, Brigitte; Freibauer, Annette; Döhler, Helmut; Schreiner, Carsten; Osterburg, Bernhard; Fuß, Roland
  18. Exports Promotion Policies for African Manufacturing Firms : Does electricity infrastructure matter more than exchange rate undervaluation ? By Kabinet Kaba
  19. Regionalplanung für einen raumverträglichen Ausbau von Freiflächen-Photovoltaikanlagen (FPV) By Einig, Klaus; Knieling, Jörg; Mattern, Stefanie; Panebianco, Stefano; Schmidt-Kaden, Petra Ilona; Trinemeier, Christoph; Wernig, Roland; Zeck, Hildegard
  20. A robust structural electric system model with significant share of intermittent renewables under auto-correlated residual demand By Pierre Cayet; Arash Farnoosh
  21. Laden von Elektrofahrzeugen in Deutschland mit Ökostromverträgen By Wietschel, Martin; Preuß, Sabine; Kunze, Robert; Keller, Marc
  22. Optimizing Fuel Consumption and Pollutant Emissions in Truck Routing with Parking Availability Prediction and Working Hours Constraints By Vital, Filipe; Ioannou, Petros
  23. Farmer Views on Adoption of Pennycress as Energy Feedstock: Results from the 2020 Pennycress Survey By Zhou, Xia Vivian; Larson, James A.; Jensen, Kimberly L.; English, Burton C.
  24. Automated Vehicle Technology Has the Potential to Smooth Traffic Flow and Reduce Greenhouse Gas Emissions By Almatrudi, Sulaiman; Parvate, Kanaad; Rothchild, Daniel; Vijay, Upadhi; Jang, Kathy; Bayen, Alexandre
  25. Propuesta de marco regulatorio para acelerar la inversión en electromovilidad mediante la reconversión de vehículos que usan combustibles fósiles By -
  26. The impact of climate transition risks on financial stability. A systemic risk approach By Ojea-Ferreiro, Javier; Reboredo, Juan C.; Ugolini, Andrea
  27. Citations, funding and influence in Energy-Policy research on Developing Economies By Ali, M.; Couto, L. C.; Unsworth, S.; Debnath, R.
  28. Testimony on Exploring Financial Risks on Banking Posed by Climate Change By Dina Maher
  29. Digitalisation for the transition to a resource efficient and circular economy By Eva Barteková; Peter Börkey
  30. Evaluating the Sustainability Impacts of Intelligent Carpooling Systems for SOV Commuters in the Atlanta Region By Liu, Diyi; Guin, Angshuman
  31. Turning Around the Power Distribution Sector: Learnings and Best Practices from Reforms By Regy, Prasanth Vairavana; Sarwal, Rakesh; Stranger, Clay; Fitzgerald, Garrett; Ningthoujam, Jagabanta; Gupta, Arjun; Singh, Nuvodita
  32. Power Trips: Early Understanding of Preparedness and Travel Behavior During California Public Safety Power Shutoff Events By Wong, Stephen D PhD; Broader, Jacquelyn C; Shaheen, Susan A PhD
  33. Alcohol prohibition and pricing at the pump By Fischer, Kai

  1. By: Daniel Nachtigall; Jane Ellis; Sofie Errendal
    Abstract: This paper assesses the role of carbon pricing in a sustainable recovery from COVID-19. It tracks the policy changes in carbon pricing within OECD and G20 countries between January 2020 and August 2021 of the COVID-19 pandemic. Carbon pricing as defined here includes emissions trading schemes, fossil fuel support and carbon, fuel excise or aviation taxes. The paper also highlights the need for the recovery to be sustainable and discusses the advantages, limitations and uses of carbon pricing therein. In addition, it describes additional challenges to as well as increased rationale for carbon pricing in the pandemic. It provides evidence on the effects of carbon pricing on the challenges and discusses carbon pricing design elements to help overcome those challenges. The paper concludes that there were more policy changes with an expected negative impact on climate. However, it is likely that the impact of the climate-positive changes – which are broader in coverage and scope - will outweigh the climate-negative changes.
    Keywords: sustainable recovery, COVID-19, carbon pricing, carbon tax, emissions trading system, ETS, Fossil fuel subsidies, revenue recycling, climate change, climate mitigation, NDC
    JEL: H23 Q54 Q56 Q58
    Date: 2022–03–10
  2. By: Serda Selin Ozturk (Department of Business and Finance, Istanbul Bilgi University, Eyup, Istanbul 34060, Turkey); Riza Demirer (Department of Economics and Finance, Southern Illinois University Edwardsville, Edwardsville, IL 62026-1102, USA); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa)
    Abstract: This study examines the role of climate uncertainty over price volatility in the carbon emissions market using novel measures of uncertainty that capture transitional and physical climate risks. Applying a multivariate stochastic volatility model to daily European Union Allowance prices, we show that climate uncertainty indeed serves as a significant driver of price fluctuations in emissions prices with physical climate risks associated with uncertainty surrounding natural hazards playing a more dominant role over policy uncertainty in recent years. While our findings highlight the growing role of public concern over global warming and climate hazards than policy aspects as a driver of pricing dynamics in the emissions market, our findings present an interesting opening for hedging strategies towards attaining decarbonization goals in investment positions.
    Keywords: Climate Risk, Carbon Prices, Stochastic Volatility
    JEL: C15 O13 Q54
    Date: 2022–02
  3. By: Vital, Filipe; Ioannou, Petros
    Abstract: The transportation sector is responsible for 28% of US greenhouse emissions, with a considerable amount being generated by medium- and heavy-duty trucks. Multiple strategies will be needed to improve efficiency and reduce carbon dioxide (CO2) emissions in the trucking industry. Researchers at the University of Southern California developed a truck routing model that minimizes fuel consumption and reduces emissions while explicitly accounting for parking availability and hours-of-service constraints. The researchers used the model to test various scenarios that reflect the practical constraints faced by drivers. View the NCST Project Webpage
    Keywords: Engineering, Hours of Service Regulations, Truck Driver Scheduling, Fuel Consumption Optimization, Parking-aware Planning
    Date: 2022–03–01
  4. By: Zimmermann, Florian; Keles, Dogan
    Abstract: France wants to become carbon-neutral by 2050. Renewable energies and nuclear power are expected to make the main contribution to this goal. However, the average age of nuclear power plants is approaching 37 years of operation in 2022, which is likely to lead to increased outages and expensive maintenance. In addition, newer nuclear power plants are flexible to operate and thus compatible with high volatile feed-in from renewables. Nevertheless, it is controversially discussed whether nuclear power plants can still be operated competitively and whether new investments will be made in this technology. Using an agent-based simulation model of the European electricity market, the market impacts of possible nuclear investments are investigated based on two scenarios: a scenario with state-based investments and a scenario with market-based investments. The results of this investigation show that under our assumptions, even with state-based investments, carbon neutrality would not be achieved with the estimated nuclear power plant capacity. Under purely market-based assumptions, large amounts of gas-fired power plants would be installed, which would lead to an increase in France's carbon emissions. State-based investments in nuclear power plants, however, would have a dampening effect on neighboring spot market prices of up to 4.5 % on average.
    Keywords: France,nuclear,electricity market,capacity remuneration mechanism,cross-border effect,investment
    Date: 2022
  5. By: Daniel Clarke (OECD); Florian Flachenecker (OECD); Emmanuelle Guidetti (OECD); Pierre-Alain Pionnier (OECD)
    Abstract: By moving goods and people over large distances, air transport facilitates international trade and tourism and thus contributes to economic growth and job creation. At the same time, it also comes with environmental challenges, largely related to air emissions and their impact on global warming. Air transport has been disproportionately negatively affected by the COVID-19 pandemic with associated reductions in air emissions. However, recent projections show that, in the absence of accelerated technological developments and more ambitious policy measures, aviation-related carbon dioxide (CO2) emissions will grow again at a rapid pace after the pandemic. This paper describes a new OECD database providing near-real-time and global information on aviation-related CO2 emissions, with allocations across countries following either the territory or the residence principle. This database provides a public good for both statistical measurement and environmental policy analysis. On the statistical front, it will facilitate the compilation of global Air Emission Accounts according to the System of Environmental Economic Accounting (SEEA), bring granular and timely information on a significant source of CO2 emissions, and allow tracking their evolution during and after the COVID-19 pandemic. The comparison with official statistics that are available with a significant delay and at lower frequency demonstrates the accuracy of the OECD estimates. On the environmental policy front, it is expected that the OECD database will help monitor the impact of technological developments and policy measures to curb aviation-related CO2 emissions in the future.
    Keywords: air transport, big data, climate change, CO2 emissions, covid-19, environmental-economic accounting, seea, UNFCCC inventories
    JEL: L93 Q53 Q56
    Date: 2022–03–08
  6. By: Halse, Askill H. (Institute of Transport Economics); Hauge, Karen E. (Ragnar Frisch Centre for Economic Research); Isaksen, Elisabeth T. (Ragnar Frisch Centre for Economic Research); Johansen, Bjørn G. (Institute of Transport Economics); Rauum, Oddbjørn (Ragnar Frisch Centre for Economic Research)
    Abstract: We study how the adoption of battery electric vehicles – a key technology for decarbonizing transportation – responds to two local privileges: road toll exemption and bus lane access. Combining rich Norwegian microdata with a quasi-experimental research design where we exploit household-level variations in incentives on work commutes, we find sizable and positive effects on electric vehicle ownership. The increase in electric vehicles from having road tolls and bus lanes on work commutes is offset by a similar decline in conventional vehicles. Road tolls also reduce brown driving, but lower CO2 emissions are largely explained by the existence of fewer conventional vehicles.
    Keywords: electric vehicles; local incentives; road tolls; bus lanes
    JEL: H23 Q55 Q58 R41 R48
    Date: 2022–03–07
  7. By: Ellie Benton; LSE Housing and Communities; Anne Power
    Keywords: energy saving. retrofit, social housing, fire safety, case studies, grenfell,
    Date: 2022–03
  8. By: Marten Ovaere; Michiel Kenis; Kenneth Van den Bergh; Kenneth Bruninx; Erik Delarue (-)
    Abstract: Since 2015 available cross-border transmission capacity is determined using flowbased market coupling (FBMC) in the day-ahead electricity markets of Central Western Europe. This paper empirically estimates the effect of introducing FBMC on electricity price convergence and cross-border exchange volumes. In the month following the introduction of FBMC, hourly cross-border exchange volumes increased by 1,700 MWh/h, while price convergence between countries increased by 12.2 e/MWh. Since then, observed cross-border exchange volumes decreased to 400 MWh/h below their levels before the introduction of FBMC by the end of 2017. However, when controlling for changing market conditions in the years following the introduction of FBMC, we find that FBMC still has a persistent positive effect of around 1,000 MWh/h on hourly cross-border exchange volumes and of 2 e/MWh on price convergence. Finally, we provide suggestive evidence that decreased commercial transmission capacity on critical branches might have contributed to the decline of the benefits over time. This paper is useful for policymakers, regulators, TSOs, and other stakeholders in light of the extension of FBMC to other regions as it is the target methodology for coupling market zones in the European single electricity market.
    Keywords: flow-based market coupling, regression discontinuity, electricity transmission, electricity prices, congestion management, power systems
    JEL: Q41 Q42 Q5 Q54 Q58 L94
    Date: 2022–03
  9. By: Ara Jo (Center of Economic Research (CER-ETH), ETH Zürich, Zürichbergstrasse 18, 8032 Zürich, Switzerland); Alena Miftakhova (Center of Economic Research (CER-ETH), ETH Zürich, Zürichbergstrasse 18, 8032 Zürich, Switzerland)
    Abstract: The degree of substitutability between clean and dirty energy plays a central role in leading economic analyses of optimal environmental policy. Despite the importance, a constant and exogenous elasticity of substitution has been a dominant theoretical approach. We challenge this assumption by developing a dynamic general equilibrium model with an endogenous elasticity of substitution that interacts with the relative share of clean inputs in the economy. We find strong dynamic feedback effects arising from endogenous substitution capacity that amplifies the impact of directed technical change and accelerates the transition to a green economy
    Keywords: Elasticity of substitution, directed technical change, climate change
    JEL: Q40 Q55 Q54 O33
    Date: 2022–03
  10. By: Nina Boogen (Center of Economic Research (CER-ETH), ETH Zürich, Zürichbergstrasse 18, 8032 Zürich and Zurich University of Applied Sciences (ZHAW)Switzerland); Massimo Filippini (Center of Economic Research (CER-ETH), ETH Zürich, Zürichbergstrasse 18, 8032 Zürich and Università della Svizzera italiana, 6904 Lugano, Switzerland); Adan L. Martinez-Cruz (Department of Forest Economics, and Centre for Environmental and Resource Economics (CERE), Swedish University of Agricultural Sciences (SLU), Skogsmarksgränd 17 , 90183 Umeå, Sweden)
    Abstract: Previous efforts exploring options to increase residential sector’s energy efficiency have overlooked that highlighting co-benefits associated with energy efficiency may represent a promising strategy to draw attention from decision makers. For instance, in addition to savings in energy costs, buildings equipped with energy saving and comfort ventilation (ESV) system provide co-benefits such as improved indoor air quality (IAQ), thermal comfort, and noise reduction. These co-benefits are attributes of an experience goods as their value is difficult to appraise unless they have been experienced. This paper estimates the value of these co-benefits by inquiring willingness to accept (WTA) compensation to hold off on using ESV from Swiss owners of Minergie houses, which are equipped with ESV. Average monthly WTA is CHF 181 —value dominated by IAQ. WTA protocols may deliver overestimated values. Thus this paper estimates willingness to pay (WTP) on a sample of owners of conventional houses —i.e. respondents that have not experienced an ESV. Average monthly WTP is CHF 163 —value dominated by presence of allergies at home, an approximation to relevance of IAQ among respondents that have not experienced ESV. A back-of-the-envelope cost-benefit analysis informed with our estimates suggests that monthly benefits from ESV can be as much as twice the costs.
    Keywords: Co-benefits of energy efficiency; residential investment decisions; willingness to accept; willingness to pay; Swiss home owners
    JEL: D12 Q40 R21
    Date: 2022–03
  11. By: Naeem, Muhammad Abubakr (Accounting and Finance Department, United Arab Emirates University, United Arab Emirates; South Ural State University, Russian Federation); Karim, Sitara (Department of Business Administration, Faculty of Management Sciences, ILMA University, Karachi, Pakistan); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Nepal, Rabindra (School of Business, Faculty of Business and Law, University of Wollongong, Australia)
    Abstract: The current study examines the risk transmission between green markets and commodities spanning 3 January 2011 to 20 June 2021. We use two novel methodologies of volatility transmission using dynamic conditional correlation (DCC-GARCH) and the other time-varying parameters vector autoregression (TVP-VAR) technique of connectedness. We found parallel results of risk transmission between green markets and commodities using these measures of connectedness. Results demonstrate that green markets and commodities form a weakly knitted sphere of connectedness where intra-group clustering dominates the inter-group connectedness. Clean energy markets and precious metals form two distinct groups of connectedness for respective markets. However, crude oil, natural gas and wheat remained indifferent to the shocks highlighting their potential to serve as diversifiers due to their low risk bearing features. Further, time-varying dynamics emphasize the occurrence of sizable events that disrupted the operations of green and commodity markets, accentuating the attention of investors, portfolio managers, and financial market participants. Intense spillovers shaped the overall connectedness of the network where green markets (commodities) are fashioned in positive (negative) risk spillovers. Finally, we propose recommendations for policymakers, regulators, investors, portfolio managers, and market participants to devise policies and investment goals to shield their investments from unexpected circumstances.
    Keywords: Green markets; Commodities; DCC-GARCH; TVP-VAR; Volatility transmission
    JEL: G10 G11 G19 Q01
    Date: 2022–02–24
  12. By: J.M.D. Sandamali Wijayarathne (University of Waikato); Gazi M. Hassan (University of Waikato); Mark J. Holmes (University of Waikato)
    Abstract: The Sustainable Development Goal (SDG) 7 ensures universal access to affordable, reliable, and modern energy services by 2030. However, one-third of the world's population still lacks access to clean cooking fuel, and it will account for 2.3 billion by 2030. The transition from solid to clean, modern fuel is challenging because it is influenced by various factors, with household income being one of the most influential. Nowadays, the overwhelming majority of people in low and middle-income countries heavily rely on migrant remittances as a source of income, and this will have a favourable impact on clean cooking fuel choice. To explore this, we use three waves of Sri Lankan Households' Income and Expenditure Survey data (2009, 2012, and 2016). The results of propensity score matching analysis reveal that migrants use about 5% more clean fuel for cooking than non-migrants. Furthermore, we use the instrumental variable approach and the log of the distance to the nearest bank as the instrument to address the endogeneity of remittances. Accordingly, the control function estimates show that a 10% increase in migrant remittances increases clean cooking fuel use by 3.2%. The instrumental variable mediation analysis results find that household wealth significantly mediates this relationship. The findings suggest that policies encouraging migrant remittances can assist in developing and implementing energy policies to achieve SDG 7 by 2030.
    Keywords: clean fuels; solid fuels; remittances; migration; household wealth; sustainable development goals
    JEL: F22 F24 Q40 R20
    Date: 2022–03–25
  13. By: Chris Kenyon; Mourad Berrahoui; Andrea Macrina
    Abstract: Alignment of financial market incentives and carbon emissions disincentives is key to limiting global warming. Regulators and standards bodies have made a start by requiring some carbon-related disclosures and proposing others. Here we go further and propose a Carbon Equivalence Principle: all financial products shall contain a description of the equivalent carbon flows from greenhouse gases that the products enable, as well as their existing description in terms of cash flows. This description of the carbon flows enabled by the project shall be compatible with existing bank systems that track cashflows so that carbon flows have equal standing to cash flows. We demonstrate that this transparency alone can align incentives by applying it to project finance examples for power generation and by following through the financial analysis. The financial requirements to offset costs of carbon flows enabled in the future radically change project costs, and risk that assets become stranded, thus further increasing costs. This observation holds whichever partner in the project bears the enabled-carbon costs. Mitigating these risks requires project re-structuring to include negative emissions technologies. We also consider that sequestered carbon needs to remain sequestered permanently, e.g., for at least one hundred years. We introduce mixed financial-physical solutions to minimise this permanence cost, and price to them. This complements previous insurance-based proposals with lesser scope. For financial viability we introduce project designs that are financially net-zero, and as a consequence are carbon negative. Thus we see that adoption of the Carbon Equivalence Principle for financial products aligns incentives, requires product redesign, and is simply good financial management driving sustainability.
    Date: 2022–02
  14. By: Enrico Nano (IHEID, Graduate Institute of International and Development Studies, Geneva)
    Abstract: As of 2020, 770 million people still lack access to electricity worldwide and 10% of this population is in Nigeria. Nevertheless, the country has received so far little attention in this respect from the academic community. The economic literature also does not generally agree on the impact of access to electricity on education outcomes, despite being the object of several programmes and policies, and one of the key SDGs of the 2030 Agenda. This paper aims at filling these gaps in the literature by providing a medium-term analysis of the effect of village-level electricity access on kids' schooling in rural Nigeria. It also contributes to the methodological debate using a novel instrument in this context, namely the frequency of lightning strikes in the area surrounding households. The results show that electricity access leads to an increase in school enrolment and a decrease in the grade-for-age (GFA) gap, a measure of educational performance. The paper also discusses some of the mechanisms that can lead to the observed findings, their robustness and heterogeneity, as well as the role of the quality of electricity received.
    Keywords: Energy Access; Rural Electrification; Education; School Enrolment; Nigeria
    JEL: O12 O13 I25 Q48
    Date: 2022–03–08
  15. By: Tobias Kruse; Antoine Dechezleprêtre; Rudy Saffar; Leo Robert
    Abstract: As countries implement stricter environmental policies, the need for tools to compare countries’ environmental policy stringency is becoming more pressing. The OECD Environmental Policy Stringency (EPS) index has become a widely used tool for policy analysis since its creation in 2014. This paper updates the EPS index over three decades from 1990 to 2020, across 40 countries and 13 policy instruments, focussing on climate change and air pollution mitigation policies. It up-grades the index structure across all years, adding a new sub-index that measures the strength of technology support policies, which complements the existing structure of market based and non-market based sub-indices. The paper shows evolving developments – across countries and time – in the stringency of environmental policies.
    Keywords: composite indicators, Environmental policy stringency, environmental regulation
    JEL: Q48 Q50 Q58
    Date: 2022–03–14
  16. By: Zarepour, Z.; Wagner, N.
    Abstract: Energy prices increased several folds due to the 2010 Iranian Energy Subsidy Reform. This study assesses the impact of the reform on the performance of manufacturing firms using a detailed micro-panel dataset at the 4-digit ISIC level for the period 2009 to 2013. Since the reform universally affected all firms, the analysis relies on a quasi-experimental framework implementing first an explorative before-after design with structural fixed-effects and second a difference-in-difference analysis exploiting energy-sensitivity. The subsidy removal caused a shrinkage in output and manufacturing value-added of at least 3 and 7%, respectively. This results in a deterioration of profits by nearly 9%. Manufacturing firms have been affected through three channels: increasing costs of direct energy inputs, pass-through costs for inputs from upstream firms and an energy-price-induced demand contraction. To successfully implement an energy subsidy reform while maintaining growth in the manufacturing sector, not only the direct but also the indirect, pass-through effects have to be considered since capital or technology-led responses to mitigate negative repercussions in the short-run are unlikely at large scale. The results can inform price reforms that aim to mitigate climate change.
    Keywords: Manufacturing firms, Iran, energy subsidy reform, energy price, performance loss
    JEL: L60 O12 Q48
    Date: 2022–02–01
  17. By: Vos, Cora; Rösemann, Claus; Haenel, Hans-Dieter; Dämmgen, Ulrich; Döring, Ulrike; Wulf, Sebastian; Eurich-Menden, Brigitte; Freibauer, Annette; Döhler, Helmut; Schreiner, Carsten; Osterburg, Bernhard; Fuß, Roland
    Abstract: The report at hand (including a comprehensive annex of data) serves as additional document to the National In-ventory Report (NIR) on the German green house gas emissions and the Informative Inventory Report (IIR) on the German emissions of air pollutants (especially ammo-nia). The report documents the calculation methods used in the German agricultural inventory model Py-GAS-EM as well as input data, emission results and uncertainties of the emission reporting submission 2022 for the years 1990 - 2020. In this context the sector Agriculture comprises the emissions from animal husbandry, the use of agricultural soils and anaerobic digestion of energy crops. As required by the guidelines, emissions from activities preceding ag-riculture, from the use of energy and from land use change are reported elsewhere in the national invento-ries. The calculation methods are based in principle on the international guidelines for emission reporting and have been continuingly improved during the past years by the Thünen Institute working group on agricultural emission inventories, partly in cooperation with KTBL. In particular, these improvements concern the calculation of energy requirements, feeding and the N balance of the most im-portant animal categories. In addition, technical measures such as air scrubbing (mitigation of ammonia emissions) and digestion of animal manures (mitigation of emissions of methane and laughing gas) have been taken into account. For the calculation of emissions from anaerobic digestion of animal manures and energy crops (including spreading of the digestate), the aforemen-tioned working group developed, in cooperation with KTBL, a national methodology. Total GHG emissions from German agriculture de-creased from 70.6 Tg CO2eq in 1990 to 56.1 Tg CO2eq in 2020 (-20.5 %). This reduction is a consequence of the fol-lowing emission changes of partial sources (rounded fig-ures): • decrease of 9.3 Tg CO2eq (-28.0 %) as CH4 from enteric fermentation, • decrease of 2.1 Tg CO2eq (-18.1 %) as CH4 and N2O from manure management, • increase of 1.6 Tg CO2eq as CH4 and N2O from anaer-obic digestion of energy crops (digester + storage of digestate; 1990: 0 Tg), • decrease of 4.1 Tg CO2eq (18.0 %) as N2O from agri-cultural soils, • decrease of 0.56 Tg CO2eq (-20.6 %) as CO2 from lim-ing (agriculture and forest), • increase of 0.02 Tg CO2eq (+5.1 %) as CO2 from appli-cation of urea. These changes are largely the result of the decline in animal numbers following reunification (reduction of oversized livestock numbers in Eastern Germany) and from the mid-2000s due to the limiting effect of the milk quota system (albeit with a renewed increase due to abolition of the milk quota system as of 31 May 2015). Increased nitrogen fertilization (mainly due to the appli-cation of increasingly larger amounts of digestate) led to an increase in greenhouse gas emissions from the mid-2000s. By contrast, the increasing use of manure in biogas plants has contributed to a reduction in methane emis-sions from manure storage. The NH3 time series as well is a result of counteracting processes. Here too, one of the important governing quantities is the animal number the decrease of which after the German reunification is the main reason for the considerable decrease of the emissions from 1991 to 1992. Mitigation measures like emission-reduced stor-age and application of manure led to a reduction of emis-sions in subsequent years. However, opposite trends are caused by increase of animal performance and, for some years, animal numbers. In addition, emissions from appli-cation of synthetic fertilizer were higher than in 1990 in the years between 1998 and 2017, even though the amount of synthetic fertilizer applied decreased (in units of nitrogen). The observed increase of emissions was due to the increasing share of urea, as urea has a considerably higher emission factor than other synthetic fertilizers. Since 2020, urea fertilizers must either be incorporated within four hours or be stabilized with a urease inhibitor, which is why the emission factor has been greatly re-duced from this year onwards. A major contributor to the increase in NH3 emissions in recent years has been the increase in anaerobic diges-tion of energy crops. Including anaerobic digestion of en-ergy crops (including spreading of digestates) leads 2020 to total NH3 emissions from agriculture of 512.3 Gg, which is 25.5 % less than 1990 and 8.6% less than 2005.
    Keywords: Crop Production/Industries, Environmental Economics and Policy, Health Economics and Policy, Land Economics/Use
    Date: 2022–03–31
  18. By: Kabinet Kaba (CERDI - Centre d'Études et de Recherches sur le Développement International - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne)
    Abstract: This paper studies the effects of power outages and exchange rate undervaluation on the allocation of manufacturing firms between the domestic and the exports market. I apply the instrumental variables approach to a sample of 12,062 manufacturing firms operating in 33 sub-Saharan African countries. The main results show that a 1% increase in the length of power outages reduces the share of exports in total sales by 0.939 percentage points. An undervaluation of 1% leads to an increase in the share of exports by 0.540 percentage points. The collateral damage effects show a negative impact of power outages and exchange rate undervaluation on the share of foreign inputs and a positive effect on the share of domestic inputs in the total purchase of inputs. Moreover, power outages and exchange rate undervaluation affect more the share of exports of firms in countries with low access to electricity, non-innovative firms, firms making less self-generation and firms operating in non-resource-rich countries. The robustness check indicates that the access to electricity and the exchange rate (undervaluation and depreciation) are substitutes. Indeed, a 1% improvement in electricity access per population reduces the positive impact of exchange rate undervaluation and depreciation on the share of exports by 0.172 and 0.583 percentage points, respectively.
    Keywords: Power outages,Exchange rate,Manufacturing firms,Exports,Domestic sales,Africa
    Date: 2021–10–26
  19. By: Einig, Klaus; Knieling, Jörg; Mattern, Stefanie; Panebianco, Stefano; Schmidt-Kaden, Petra Ilona; Trinemeier, Christoph; Wernig, Roland; Zeck, Hildegard
    Abstract: Mit der Energiewende wird Energieerzeugung auf Grundlage erneuerbarer Energien dezentral und flächenintensiv. Bei der Solarenergie sind vorrangig Innenbereichspotenziale zu erschließen. Gleichwohl drängen Freiflächen-Photovoltaikanlagen zur solartechnischen Stromerzeugung zunehmend als neue Nutzung in den Außenbereich. Aufgrund dort vielfach auftretender Flächennutzungskonkurrenzen und Konflikte bedarf es einer aktiven raumplanerischen Steuerung. Dafür ist die regionale Planungsebene mit ihrem querschnittsorientierten, überörtlichen Betrachtungsansatz bei noch hinreichend gebietsscharfer Maßstäblichkeit besonders gut geeignet. Ihre planerischen Werkzeuge können je nach Steuerungsintention und der jeweiligen regionsspezifischen Handlungserfordernisse gezielt eingesetzt werden, wenn auch die Rechtsgrundlagen in Teilen dafür noch geschärft werden müssen. Neben förmlich-verbindlichen Steuerungsansätzen können auch informelle Ansätze einen Beitrag zur geordneten Entwicklung von FPV liefern.
    Keywords: Energiewende,erneuerbare Energien,Photovoltaik,Freiflächen-Photovoltaikanlagen,Innenbereich,Bauleitplanung,Außenbereich,Freiraum,Regionalplanung,Flächenvorsorge,Vorranggebiete,Vorbehaltsgebiete,förmlich-verbindliche Steuerungsansätze,informelle Steuerungsansätze,Energy transition,renewable energies,photovoltaic,open space-photovoltaic power plants,interior area,urban land-use planning,exterior area,open space,regional spatial planning,provision of areas,priority areas,reserve areas,obligatory planning approach,informal planning approach
    Date: 2022
  20. By: Pierre Cayet; Arash Farnoosh
    Abstract: In this paper, we propose a robust structural investment and dispatch model of electric systems including commitment and storage constraints under auto-correlated residual demand. We associate it to a novel approach to robust optimization focusing on uncertainty parameter trajectories. Using Principal Component Analysis, we approximate conditional order statistics for the differential distribution of components of residual demand using parametric polynomial regression. This flexible method allows us to derive a set of extreme trajectories maximizing the level and variability of residual demand. Finally, we apply our dynamic robust model to the electric system of the French region Auvergne Rhône-Alpes and discuss the implications in terms of investment decisions and cost performance.
    Keywords: Optimal electricity mix; Robust optimization; Dynamic uncertainty
    JEL: C61
    Date: 2022
  21. By: Wietschel, Martin; Preuß, Sabine; Kunze, Robert; Keller, Marc
    Abstract: Auf der Basis einer Umfrage wird analysiert, wie hoch der Anteil von Plug-in electric vehicles (PEV)-Nutzenden in Deutschland ist, der erneuerbaren Strom zum Laden über entsprechende Lieferverträge bezieht und wie dies zu bewerten ist. Die Auswertung hat ergeben, dass für alle Ladeorte - zu Hause, am Arbeitsplatz und öffentliche Schnell- und Langsamladesäulen - der Anteil von Ökostromverträgen sehr hoch (>75 %) ist. Gerade beim Laden zu Hause, was der häufigste Ladeort ist, liegt der Anteil von Ökostromverträgen von PEV-Nutzenden (84 %) weit über dem in deutschen Haushalten (30 %). Die verschiedenen Ökostromverträge unterscheiden sich aber deutlich in ihren ökologischen Anforderungen. Die Kenntnisse hierüber scheinen aber bei den PEV-Nutzenden eher gering zu sein.
    Date: 2022
  22. By: Vital, Filipe; Ioannou, Petros
    Abstract: The transportation sector is responsible for a significant part of the U.S.’s greenhouse emissions, with a considerable amount being generated by medium-and heavy-duty trucks. However, when it comes to the trucking industry, ‘green’ routing studies do not consider other critical practical factors, like working hours regulations and parking availability. Due to parking shortages, routes and schedules that do not account for parking availability may lead to last-minute changes that make them more polluting than expected. Similarly, working hours regulations influence the timing of required rest stops, which may force drivers to deviate from initially selected routes and schedules with negative consequences to fuel consumption and emissions. This study addresses a variant of the shortest path and truck driver scheduling problem under parking availability constraints which focuses on optimizing fuel consumption and emissions by controlling the truck's travel speed and accounting for time-dependent traffic conditions. As it is impossible to be absolutely certain about the future parking availability of any location during planning, the case of stochastic parking availability was also studied. When studying the trade-offs between prioritizing emissions reduction or trip duration, it was found that although focusing on emissions reduction can increase trip duration significantly, this impact is greatly reduced when considering scenarios with limited parking availability. The problem formulation was further extended to model drivers’ possible recourse actions when unable to find parking and the ensuing costs. This formulation was used to study how the solutions are affected by the level of information provided to drivers. It was found that ignoring uncertainty in parking availability results in inconsistent performance even when restricting parking to periods when probability of finding parking is high. Furthermore, results might not reflect the intent of the cost function used, e.g., minimizing illegal parking events and/or the priority assigned to emissions reduction. Giving drivers full information about the probability of finding parking at any time/location significantly improves performance and reduces illegal parking-related risks, but also substantially increase problem complexity and computation time. Using full information regarding parking availability but restricting the parking times to high availability time-windows can reduce complexity while maintaining consistent, although reduced, performance. View the NCST Project Webpage
    Keywords: Engineering, Hours of Service Regulations, Truck Driver Scheduling, Fuel Consumption Optimization, Parking-aware Planning
    Date: 2022–03–01
  23. By: Zhou, Xia Vivian; Larson, James A.; Jensen, Kimberly L.; English, Burton C.
    Keywords: Crop Production/Industries, Farm Management
    Date: 2022–01
  24. By: Almatrudi, Sulaiman; Parvate, Kanaad; Rothchild, Daniel; Vijay, Upadhi; Jang, Kathy; Bayen, Alexandre
    Abstract: In an ideal world, all cars along a congested roadway would travel at the same constant average speed; however, this is hardly the case. As soon as one driver brakes, trailing cars must also brake to compensate, leading to “stop and go” traffic waves. This unnecessary braking and accelerating increases fuel consumption (and greenhouse gas emissions) by as much as 67 percent.1 Fortunately, automated vehicles (AVs) — even Level 2 AVs2 which are commercially available today — have the potential to mitigate this problem. By accelerating less than a human would, an AV with flow smoothing technology is able to smooth out a traffic wave, eventually leading to free-flowing traffic (See Figure 1). To demonstrate the potential of flow smoothing on reducing greenhouse gas emissions, researchers at UC Berkeley used a calibrated model of the I-210 freeway in Los Angeles to simulate and measure the effect of deploying different percentages (10%, 20%, 30%) of flow-smoothing AVs on the average miles per gallon (MPG) of non-AVs in the traffic system.
    Keywords: Engineering
    Date: 2022–02–01
  25. By: -
    Abstract: Este documento es una contribución para que los países de América Latina y el Caribe avancen hacia la electromovilidad. La movilidad urbana en las ciudades de la región es cada vez más ineficiente, con pérdidas de productividad por problemas de salud causados por la contaminación, pérdidas económicas por la congestión del tránsito, la degradación de espacios y las elevadas emisiones de gases de efecto invernadero. Electrificar la movilidad, especialmente la pública, constituye un impulso para el desarrollo productivo y sostenible de la región. El primer paso para avanzar en esta estrategia de transformación de vehículos para acelerar la inversión en electromovilidad es contar con un marco regulatorio que establezca los requisitos necesarios para resguardar la seguridad. En este documento se plantea la posibilidad de una regulación de carácter general para que los países interesados puedan hacer el uso que estimen conveniente de la propuesta.
    Date: 2021–10–22
  26. By: Ojea-Ferreiro, Javier (European Commission); Reboredo, Juan C. (Universidade de Santiago de Compostela); Ugolini, Andrea (University of Milan-Bicocca)
    Abstract: Transitioning to a low-carbon economy involves risks for the value of financial assets, with potential ramifications for financial stability. We quantify the systemic impact on financial firms arising from changes in the value of financial assets under three climate transition scenarios that reflect different levels of vulnerability to the transition to a low-carbon economy, namely, orderly transition, disorderly transition, and no transition (hot house world). We describe three systemic risk metrics computed from a copula-based model of dependence between financial firm returns and financial asset market returns: climate transition expected returns, climate transition value-at-risk, and climate transition expected shortfall. Empirical evidence for European financial firms over the period 2013-2020 indicates that the climate transition risk varies across sectors and countries, with banks and real estate firms experiencing the highest and lowest systemic impacts from a disorderly transition, respectively. We find that default premium, yield slope and inflation are the main drivers of climate transition risk, and that, in terms of capital shortfall, the cost of rescuing more risk-exposed financial firms from climate transition losses is relatively manageable. Simulation of climate risks over a five-year period shows that disorderly transition can be expected to imply significant costs for banks, while financial services and real estate firms remain more sheltered.
    Keywords: Climate risks, financial stability, systemic risk, copulas
    JEL: C32 C58 G01 G20 G28
    Date: 2022–01
  27. By: Ali, M.; Couto, L. C.; Unsworth, S.; Debnath, R.
    Abstract: Energy research seeking to influence policy in low- and -middle-income countries (LMICs) is often funded by – and conceptualised by authors in - institutions from high-income countries (HICs). Research agendas and policy recommendations determined in HICs potentially yield the most influence on policymaking for LMICs. This leaves a multidimensional gap in how LMICs frame, contextualise, evidence and enact policy processes. The unique contribution of this paper is analysing the dynamics of prevalent energy research on LMICs through a multi-method approach using bibliometric, network science and regression-based techniques. An innovative data-driven framework was established using a sample of 6,636 papers from the Web of Science database, combined with journal impact data from Scimago Journal Ranking and country economic data from the World Bank. Results show the existence of a cycle of imbalances across research practices. Most papers recommending energy policy for LMICs have a first author based in a HIC, funded by a HIC institution. Total citations of articles on energy policy in LMICs increase with the GDP of the first author’s country (a 1% increase in GDP is correlated with a 0.68% increase in total citations). Funders support authors based in countries of the same income band as them, or higher. Therefore, we recommend revising research practices and HIC funding policies to place local actors and knowledge at the heart of energy policy research, enabling high-impact policymaking in LMICs.
    Keywords: developing countries, Energy policy, energy research, funding, science collaboration
    JEL: Q49 O39 I28
    Date: 2022–03–05
  28. By: Dina Maher
    Abstract: Testimony before the New York State Senate Committees on Banks, Finance, and Environmental Conservation (delivered via videoconference).
    Keywords: climate-related financial risk; physical risk; transition risk; Federal Reserve; New York State; climate change; supervision
    Date: 2022–03–01
  29. By: Eva Barteková (OECD); Peter Börkey (OECD)
    Abstract: Digital transformation is increasingly recognised as a means to help unlocking the benefits of more inclusive and sustainable growth and enhanced social well-being. In the environmental context, digitalisation can contribute to decoupling economic activity from natural resource use and their environmental impacts. This paper takes stock of the implications of digitalisation for the transition to a resource efficient and circular economy. Particularly, the paper provides insights into how digitalisation may fuel circular business models in the private sector, and discusses the role of digital technologies in addressing some important market failures that stand in the way to scaling up circular activities. It also offers a public sector perspective, by exploring how digital technologies support effective delivery of circular economy policies, enabling better policy design, reshaping government-citizen interaction and improving implementation of policies. Additionally, the paper maps potential unintended consequences of the digital circular transition, including general risks related to data, security, privacy and transparency, as well as rebound effects and unexpected regulatory interventions.
    Keywords: circular business models, circular economy, digital technologies, market failures, rebound effects, resource efficiency
    JEL: L22 L23 O14 Q53 Q55 Q58
    Date: 2022–03–28
  30. By: Liu, Diyi; Guin, Angshuman
    Abstract: Community-based carpooling has the potential to alleviate traffic congestion and reduce the transportation carbon footprint. Once technology, communication, demographic, and economic barriers are overcome, community-based carpooling can be fully exploited. One of the major barriers to implementation is the difficulty of optimizing carpool formation in large systems. This study utilizes two different methods to solve the carpooling optimization problem: 1) bipartite algorithm and 2) integer linear programming. The bipartite method determines the maximum number of carpooling pairs given acceptable reroute costs and travel delays. The linear programming method defines the most optimal performance that minimizes the most vehicular travel mileage. These two methods are carefully compared to evaluate the carpooling potentials among single-occupancy vehicles based on the output of activity-based model’s (ARC ABM) home-to-work single-occupancy vehicle (SOV) trips that can be paired together towards designated regional employment centers. The experiment showed that under strict assumptions, an upper bound of around 13.6% of such trips could carpool together. The results are promising in terms of higher-than-anticipated carpool match rates and the predicted decrease in total vehicle mileage. Moreover, the framework is flexible enough with the potential to act as a simulation testbed, to optimize vehicular operations, and to match potential carpool partners in real-time. View the NCST Project Webpage
    Keywords: Engineering, Carpooling, Demographics, Sustainability, Traffic, Modeling
    Date: 2022–03–01
  31. By: Regy, Prasanth Vairavana; Sarwal, Rakesh; Stranger, Clay; Fitzgerald, Garrett; Ningthoujam, Jagabanta; Gupta, Arjun; Singh, Nuvodita
    Abstract: The distribution sector has been the Achilles’ heel of the Indian power sector, consistently making large losses, reflecting weaknesses in operations, infrastructure, and regulation. We will not be able to achieve a high-growth, low-carbon economy unless the distribution sector achieves profitability. Different states in India have followed different reform trajectories, and today, policy- makers can draw upon a wealth of accumulated experience. This report aims to document the best practices and lessons from across India, and where required, across the world.
    Date: 2021–08–03
  32. By: Wong, Stephen D PhD; Broader, Jacquelyn C; Shaheen, Susan A PhD
    Keywords: Engineering
    Date: 2022–03–26
  33. By: Fischer, Kai
    Abstract: Firms often sell a transparent base product and a valuable add-on product. If only some consumers are aware of the latter, the add-on's effect on the base product's price will be ambiguous. Cross-subsidization between products to bait uninformed consumers might lower, intrinsic utility from the add-on for informed consumers might raise the price. We study this trade-off in the gasoline market by exploiting an alcohol sales prohibition at stations as an exogenous shifter of add-on availability. Gasoline margins drop by 5% during the prohibition. The effect is mediated by shop variety and local competition. Implications for gasoline market definition arise.
    Keywords: Off-Premise Alcohol Prohibition,Gasoline Market,Multi-Product Firms
    JEL: L11 L91 R41
    Date: 2022

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