nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒04‒18
fifty-two papers chosen by
Roger Fouquet
London School of Economics

  1. Impact of the Feed-in-Tariff Exemption on Energy Consumption in Japanese Industrial Plants By Aline Mortha; Naonari Yajima; Toshi H. Arimura
  2. Future Connected and Automated Vehicle Adoption Will Likely Increase Car Dependence and Reduce Transit Use without Policy Intervention By Circella, Giovanni; Jaller, Miguel; Sun, Ran; Qian, Xiaodong; Alemi, Farzad
  3. Towards net zero emissions in Denmark By Andrew Barker; Hélène Blake; Filippo Maria D’Arcangelo; Patrick Lenain
  4. Cutting Russia’s Fossil Fuel Exports: Short-Term Pain for Long-Term Gain By Chepeliev, Maksym; Thomas Hertel; Dominique van der Mensbrugghe
  5. Energy Supply Security in Germany Can Be Guaranteed even without Natural Gas from Russia By Franziska Holz; Robin Sogalla; Christian von Hirschhausen; Claudia Kemfert
  6. Environmental impacts of enlarging electric vehicles market share By De Wolf, Daniel; Diop, Ngagne; Kilani, Moez
  7. The impact of carbon pricing in a multi-region production network model and an application to climate scenarios By Frankovic, Ivan
  8. Energy efficiency and local rebound effects: Theory and experimental evidence from Rwanda By Munyehirwe, Anicet; Peters, Jörg; Sievert, Maximiliane; Bulte, Erwin H.; Fiala, Nathan
  9. Does gender diversity in the workplace mitigate climate change? By Altunbas, Yener; Gambacorta, Leonardo; Reghezza, Alessio; Velliscig, Giulio
  10. Investigation of the Effect of Pavement Deflection on Vehicle Fuel Consumption: Field Testing and Empirical Analysis By Butt, Ali Azhar; Harvey, John; Fitch, Dillon; Kedarisetty, Sampat; Lea, Jeremy D.; Lea, Jon; Reger, Darren
  11. The low-carbon transition, climate commitments and firm credit risk By Carbone, Sante; Giuzio, Margherita; Kapadia, Sujit; Krämer, Johannes Sebastian; Nyholm, Ken; Vozian, Katia
  12. 2021 Zero Emission Vehicle Market Study: Volume 2: Intra-California Regions Defined by Air Districts By Kurani, Kenneth S
  13. Integrating Zero Emission Vehicles into the Caltrans Fleet By Todd, Mike; Scora, George; Luo, Jill
  14. Euro Area banks' sensitivity to changes in carbon price By Belloni, Marco; Kuik, Friderike; Mingarelli, Luca
  15. Economics of Electricity System I: Dispatching, Network Access, and Transmission Capacity Expansion (Japanese) By KANEMOTO Yoshitsugu
  16. No need to worry? Estimating the exposure of the German banking sector to climate-related transition risks By D'Orazio, Paola; Hertel, Tobias; Kasbrink, Fynn
  17. Economic geography and the efficiency of environmental regulation By Hollingsworth, Alex; Jaworski, Taylor; Kitchens, Carl; Rudik, Ivan
  18. Climate change and individual behavior By Bernard, René; Tzamourani, Panagiota; Weber, Michael
  19. Economic complexity and environmental pollution: Evidence from the former socialist transition countries By Bucher, Florian; Scheu, Lucas; Schröpf, Benedikt
  20. Climate protection potentials of digitalized production processes: Microeconometric evidence? By Axenbeck, Janna; Niebel, Thomas
  21. Climate Change in Sub-Saharan Africa Fragile States: Evidence from Panel Estimations By Mr. Rodolfo Maino; Drilona Emrullahu
  22. Conditions of Development of The Agricultural Biogas Industry in Poland in The Context of Historical Experiences and Challenges of The European Green Deal By Ignaciuk, Wiktor; Sulewski, Piotr
  23. Welfare Effects of Fuel Tax and Feebate Policies in the Japanese New Car Market By Tatsuya Abe
  24. Examining spatial disparities in electric vehicle charging station placements using machine learning By Roy, Avipsa; Law, Mankin
  25. How Much Do Local Climate Action Plans in California Consider Emissions, Cost, and Equity? By Lozano, Mark T.; Kendall, Alissa; Arnold, Gwen; Harvey, John T.; Butt, Ali A.
  26. The forgotten coal: Charcoal demand in Sub-Saharan Africa By Rose, Julian; Bensch, Gunther; Munyehirwe, Anicet; Peters, Jörg
  27. Welfare Implications of Electric-Bike Subsidies: Evidence from Sweden By Anderson, Anders; Hong, Harrison
  28. Climate Actions, Market Beliefs and Monetary Policy By Barbara Annicchiarico; Fabio Di Dio; Francesca Diluiso
  29. Environmental Plans and Freight Movement at the San Pedro Bay Ports: A Quick Strike Analysis By Matsumoto, Deanna; Mace, Caitlin; Reeb, Tyler; O'Brien, Thomas
  30. Calibrating Constant Elasticity of Substitution Technologies to Bottom-up Cost Estimates By Edward J. Balistreri; Maxwell Brown
  31. Essays on the social and distributional effects of public policies By Lisa Bagnoli
  32. Effects of Green Human Resource Management practices on environmental performance: Evidence from Textile Sector of Emerging Country By Khan, Sidra
  33. Textile and Chemical Subsectors in the Azerbaijani Economy: A Descriptive Glance at Possible De-Industrialization By Niftiyev, Ibrahim
  34. Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply By Bridget Hoffmann; Juan Pablo Rud
  35. Impacts of CBAM on EU trade partners: consequences for developing countries By Guilherme MAGACHO; Etienne ESPAGNE; Antoine GODIN
  36. Women's parliamentary representation and environmental quality in Africa: Effects and transmission channels By Edmond Noubissi; Loudi Njoya
  37. Do PTAs with environmental provisions reduce GHG emissions? Distinguishing the effectiveness of climate-related provisions By Sorgho, Zakaria; Tharakan, Joe
  38. Klimaschonend Fliegen mit Green Nudging? By Enste, Dominik; Potthoff, Jennifer
  39. An unified framework for measuring pollution-adjusted productivity change By Arnaud Abad
  40. The Negative Pricing of the May 2020 WTI Contract By Adrian, Fernandez-Perez; Ana-Maria, Fuertes; Joelle, Miffre
  41. Political and Socioeconomic Factors That Determine the Financial Outcome of Successful Green Innovation By Riehl, Kevin; Kiesel, Florian; Schiereck, Dirk
  42. In Search of Upcoming Supply Chain Surprises: The World Export Market Shares of Belarus, Russia and Ukraine By Ali-Yrkkö, Jyrki; Hirvonen, Johannes; Rouvinen, Petri
  43. Macroeconomic Effects of Green Recovery Programmes. Conceptual Framing and a Review of the Empirical Literature By Angela Köppl; Margit Schratzenstaller
  44. United Arab Emirates: 2021 Article IV Consultation-Press Release; and Staff Report By International Monetary Fund
  45. Greenwashing in the US metal industry? A novel approach combining SO2 concentrations from satellite data, a plant-level firm database and web text mining By Schmidt, Sebastian; Kinne, Jan; Lautenbach, Sven; Blaschke, Thomas; Lenz, David; Resch, Bernd
  46. Does it pay to invest in dirty industries? New insights on the shunned-stock hypothesis By Bauckloh, Michael Tobias; Beyer, Victor; Klein, Christian
  47. Langfristige Umweltbilanz und Zukunftspotenzial alternativer Antriebstechnologien By Wietschel, Martin; Link, Steffen; Biemann, Kirsten; Helms, Hinrich
  48. To mitigate or to adapt: how to deal with optimism, pessimism and strategic ambiguity? By Nahed Eddai; Ani Guerdjikova
  49. La finance verte : mirage ou révolution ? By Jade Adler; Maxence Péan
  50. Proxy-led accountability for natural resource extraction in rentier states By Kramarz, Teresa; Mason, Michael; Partzsch, Lena
  51. Bike-friendly cities: an opportunity for local businesses? Evidence from the city of Paris By Federica Daniele; Mariona Segu; David Bounie; Youssouf Camara
  52. How to Reach the Land of Cockaigne? Edgeworth Cycle Theory and Why a Gasoline Station is the First to Raise Its Price By Mats Petter Kahl; Thomas Wein

  1. By: Aline Mortha; Naonari Yajima; Toshi H. Arimura
    Abstract: To promote renewable energy deployment, Japan introduced a feed-in tariff policy in 2012, financed through a surcharge on electricity prices for consumers. The Japanese government also offered a discount system for electricity-intensive industrial plants, exempting them from paying full surcharges. Using monthly plant-level data from 2005 to 2018, this study evaluated the exemption system's impact on electricity and fossil fuel consumption for plants in the iron and steel, chemical products, and pulp and paper sectors. Our results show that the exempted iron and steel plants increased electricity purchase and consumption by 1.06% and 1.04%, respectively. The introduction of electricity efficiency as a new requirement for exemption applications after 2017 did not curb the rebound, as iron, steel, and pulp and paper plants increased their electricity consumption by 1.49% and 0.69%, respectively, after the reform. This result may call for the reform of the exemption system, with the possibility of a lower discount rate or tighter requirements for electricity efficiency.
    Date: 2022–03
  2. By: Circella, Giovanni; Jaller, Miguel; Sun, Ran; Qian, Xiaodong; Alemi, Farzad
    Abstract: California sits at the epicenter of self-driving vehicle technology development, with numerous companies testing connected and automated vehicles (CAVs) in the state. CAVs have the potential to improve safety and increase mobility for children, the elderly, and people with disabilities. These vehicles will operate more efficiently, use less space on the roadway, and cause fewer crashes, all of which are expected to relieve traffic congestion. However, CAVs will also likely bring about complex changes to travel demand, urban design, and land use. The degree to which these changes will affect vehicle miles traveled, energy use, and air pollution in California is unknown and could have wideranging implications for the state’s ability to meet its climate goals. Researchers at the University of California, Davis investigated the range of potential impacts that rapid adoption of CAVs in California might have on vehicle miles traveled and emissions. The researchers estimated the vehicle miles traveled and emissions of each scenario using a statewide travel demand model, emissions factors from California agencies, and assumptions derived from the scientific literature and expert input. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage
    Keywords: Engineering, Social and Behavioral Sciences, Autonomous vehicles, Connected vehicles, Energy consumption, Forecasting, Impact, Modal split, Pollutants, Pricing, Simulation, Travel demand, Vehicle miles of travel, Zero emission vehicles
    Date: 2022–04–01
  3. By: Andrew Barker; Hélène Blake; Filippo Maria D’Arcangelo; Patrick Lenain
    Abstract: Denmark has been a frontrunner in policies that reduce greenhouse gas emissions and now plans to cut emissions by 70% by 2030 from 1990 levels and to achieve carbon neutrality by 2050. Such ambition induces halving emissions from 2019 levels and making the same emission abatement effort in ten years than the past thirty years. Cutting emissions at such fast pace will be challenging with substantial disruptions and macroeconomic consequences. A balanced mix of pricing policies, public investment, regulation and enabling policies should allow smoothing the potential economic and social shocks and accompanying the reallocation of resources.This paper investigates further sectoral climate strategies in Denmark. In the energy sector (electricity and district heating), past progress made to ramp up clean technologies provides a good blueprint to achieve further decarbonisation, but the focus will need to be put soon on lowering reliance on woody biomass. In the transport sector, emissions have continued to increase despite the shift to more fuel-efficient vehicles, highlighting the need for more transformative policies to expand alternatives to individual car uses. In agriculture, little has been done so far to cut emissions, especially from livestock. The sector is subject to leakage risks, but nonetheless should be encouraged to transform its practices. Helping farmers to monitor their GHG emissions should be combined with more stringent regulation.
    Keywords: Agriculture, Climate change adaptation, Climate change mitigation, Climate strategy, Denmark, Energy, Environmental taxation, Public policy, Transport
    JEL: H21 H23 H50 H54 Q52 Q53 Q54 Q55 Q56 Q15 Q42 Q43 Q48 R48
    Date: 2022–04–04
  4. By: Chepeliev, Maksym; Thomas Hertel; Dominique van der Mensbrugghe
    Abstract: In response to the invasion of Ukraine, most OECD countries have announced punishing sanctions against Russia. In addition to targeting financial markets and service sectors, some countries have begun to impose restrictions on exports of Russia’s fossil fuels. In this paper, we analyze a scenario whereby most OECD countries put major restrictions on Russia’s energy exports. Results suggest that the short-term implications are likely to be non-trivial for EU – Russia’s largest energy export destination. Households’ real income could drop by 0.7-1.7 percent (relative to the reference case) with energy prices growing by as much as 11 percent. But after the initial adjustment period, the cost of such restrictions for the EU is expected to be more modest over the longer run (0.04 percent slowdown in the annual growth rate of real income over the 2022-2030 period), even as they lead to substantial environmental co-benefits through reductions in CO2 (6.6 percent in 2030) and air pollutant emissions (2.8-5.9 percent in 2030). Such emission reductions would take the EU more than halfway to its Green Deal mitigation target, reducing the necessary carbon price by around 40 EUR per tCO2. Adverse impacts on the Russian economy would be overwhelming and, in relative terms, 10 time larger than that for EU. By 2030 the cumulative reduction in Russian real income would exceed 1.1 trillion USD, while lost revenue from fossil fuel exports would be almost 1.4 trillion USD.
    Date: 2022
  5. By: Franziska Holz; Robin Sogalla; Christian von Hirschhausen; Claudia Kemfert
    Abstract: The Russian war on Ukraine and Germany’s dependence on Russian gas require a rethink of German energy supplies. While there is a heated debate about an immediate energy embargo, Russia could also stop its supplies at any time. To date, Germany has purchased around 55 percent of its natural gas from Russia. DIW Berlin has developed scenarios for how the German energy system could become independent of these imports as quickly as possible in the European context: On the supply side, deliveries from other natural gas exporting countries could compensate for some of the Russian exports. Security of supply would be significantly strengthened if the pipeline and storage infrastructure were used more efficiently. On the demand side, there is a short-term savings potential of 19 to 26 percent of current natural gas demand. In the medium term, a push towards renewable heat supply and higher energy efficiency is particularly necessary. If the energy-saving potential is exploited to the maximum and supplies from other natural gas supplier countries are expanded as far as technically possible at the same time, Germany’s supply of natural gas will be secure in 2022 and in the coming winter 2022/2023, even without Russian imports.
    Date: 2022
  6. By: De Wolf, Daniel; Diop, Ngagne; Kilani, Moez
    Abstract: We extend a transport model to simulate an increase of the market share of electric vehicles. The main results of our model is that the increase in the share of electric cars in the network must then be accompanied by the implementation of charging stations in sufficient quantity and optimal location, to reduce, note only the waiting times for charging the electrical vehicles, but also to reduce the polluting gas emission of other vehicles. The simulation framework we use is based on the model developed.
    Keywords: Transport modeling and simulation ; Electric vehicles ; Deployment of charging stations ; Local pollution ; North of France
    JEL: H23 Q5 R4
    Date: 2022–02–01
  7. By: Frankovic, Ivan
    Abstract: This paper builds on existing production network models to study the impact of global and sub-global carbon pricing. It uses the World Input-Output Database (WIOD) to calibrate intersectoral trade between seven regions and 56 economic sectors per region as well as EXIOBASE's sectoral accounts of greenhouse gas emissions to calibrate emission costs per sector for a given carbon price. The latter taxes emissions associated with the intermediate and final demand of fossil fuels as well as other emissions inherent to production. The global setup of the model allows the international propagation of carbon prices to be analyzed along worldwide value chains. The simulated sectoral impacts of carbon taxes are highly heterogeneous across sectors and regions, with the agricultural, mining, fossil fuel processing and transport sector exhibiting the largest impacts across all regions. For several sectors in Germany and Europe, particularly manufacturing sectors, international spillovers from carbon pricing outside of Europe can be substantial and increase value added losses by up to 100% relative to the impact of European-only carbon prices. The paper furthermore outlines a simple approach for applying the sectorally disaggregated results to global climate scenarios.
    Keywords: climate scenarios,carbon pricing,input-output data,production network models
    JEL: D57 E23 H23 Q54
    Date: 2022
  8. By: Munyehirwe, Anicet; Peters, Jörg; Sievert, Maximiliane; Bulte, Erwin H.; Fiala, Nathan
    Abstract: Energy efficiency is a key component of climate policy. We study micro and macro rebound effects after the introduction of energy-efficient biomass cookstoves (EEBCs). We develop a model of biomass supply and demand in rural Africa. The impact of EEBCs is empirically explored in Rwanda where we randomly varied subsidy levels for EEBCs at the village-level. Demand is price elastic, so we exploit exogenous saturation variation to study local rebound effects. While adoption of EEBCs reduces household firewood consumption, we find no meaningful local rebound effects and identify conditions under which this finding generalizes to other settings - or not.
    Keywords: Energy efficiency,macro-rebound effect,technology adoption,improved cooking
    JEL: R13 D12 O13 Q28
    Date: 2022
  9. By: Altunbas, Yener; Gambacorta, Leonardo; Reghezza, Alessio; Velliscig, Giulio
    Abstract: We match firm-corporate governance characteristics with firm-level carbon dioxide (CO2) emissions over the period 2009-2019 to study the relationship between gender diversity in the workplace and firm carbon emissions. We find that a 1 percentage point increase in the percentage of female managers within the firm leads to a 0.5% decrease in CO2 emissions. We document that this effect is statically significant, also when controlling for institutional differences caused by more patriarchal and hierarchical cultures and religions. At the same time, we show that gender diversity at the managerial level has stronger mitigating effects on climate change if females are also well-represented outside the organization, e.g. in political institutions and civil society organizations. Finally, we find that, after the Paris Agreement, firms with greater gender diversity reduced their CO2 emissions by about 5% more than firms with more male managers. JEL Classification: G12, G23, G30, D62, Q54
    Keywords: carbon emissions, female managers, global warming, green economics, Paris agreement
    Date: 2022–02
  10. By: Butt, Ali Azhar; Harvey, John; Fitch, Dillon; Kedarisetty, Sampat; Lea, Jeremy D.; Lea, Jon; Reger, Darren
    Abstract: The results presented in this report are part of Phase II of a two-phase study. Based on the results from mechanistic models of additional fuel consumption in vehicles due to the structural response of the pavement structure, Phase I of this study concluded that pavement has a small but important enough effect on vehicle fuel consumption to warrant field investigation. The goal of the Phase II study was to measure vehicle fuel consumption in the field on different pavement types in winter and summer and at different speeds, and to use the data collected to develop empirical models for this fuel-consumption effect. The field investigation presented in this report included 21 California pavement sections with different pavement types: flexible, semi-rigid, jointed plain concrete, continuously reinforced concrete, and composite structures. The vehicles selected and instrumented for the fuel economy measurements included a five-axle semi-trailer tractor, a diesel truck, a sports utility vehicle (SUV), a gasoline-fueled car, and a diesel-fueled car. Vehicles were run on cruise control and data were recorded at 45 and 55 mph on state roads and at 35 and 45 mph on local roads. The data from the field investigation were analyzed and used to develop an empirical modeling framework considering road geometry, wind, temperature, and pavement structural and surface (roughness and texture) effects on vehicle fuel consumption. Based on the final framework, a final empirical model was developed for each section. The report presents results of a factorial analysis of the effects of each variable using the final model for each vehicle type on each pavement type and in different California climate regions. The within-section variability is almost always greater than the variability between sections for a given pavement type and efficiency condition (tailwind, speed, and climate region) and the within-section variability is also usually larger than the variability between pavement types. Only the data for the heavy heavy-duty truck (HHDT) showed any meaningful difference in results between sections, but that variability is not tied to pavement type and is only present under certain conditions of speed, tailwind, and air temperature (tied to climate region). These results indicate that missing variables (or errors in the existing variables) need to be reduced in further experiments to observe measurable effects of pavements on fuel consumption in real-world driving. While air temperature interacted with cruise control speed for the HHDT, there was a lack of clear evidence that asphalt roads cause more fuel consumption for the HHDT even under the conditions where the most possible effect of pavement type was found. This suggests that pavement type is not the correct explanation for that variation. Instead, the variation in the effect of air temperature by cruise control speed for the HHDT likely has to do with differences in engine efficiency under different conditions.
    Keywords: Engineering, Physical Sciences and Mathematics, Pavement deflection, deflection energy, excess fuel consumption, fuel economy, field testing, mechanistic-empirical analysis, energy models, forward modeling
    Date: 2022–01–01
  11. By: Carbone, Sante (Financial Stability Department, Central Bank of Sweden); Giuzio, Margherita (European Central Bank); Kapadia, Sujit (European Central Bank); Krämer, Johannes Sebastian (European Central Bank); Nyholm, Ken (European Central Bank); Vozian, Katia (European Central Bank, Helsinki Graduate School of Economics, Hanken School of Economics, Leibniz Institute for Financial Research SAFE)
    Abstract: This paper explores how the need to transition to a low-carbon economy influences credit risk. It develops a novel dataset covering firms’ greenhouse gas emissions over time alongside information on strategies for managing transition risk, includ ing climate disclosure practices and forward-looking emission reduction targets. It assesses how such metrics influence firms’ credit ratings and their market-implied distance-to-default. High emissions tend to be associated with higher credit risk. But disclosing emissions and setting emission reduction targets are associated with lower credit risk, with the effect somewhat stronger for more ambitious climate commitments. After the Paris agreement, firms most exposed to transition risk also saw their ratings deteriorate relative to otherwise comparable firms, with the effect larger for European than US firms, probably reflecting differential climate policy expectations. These results have policy implications for corporate disclosures and strategies around climate change, and the treatment of climate-related transition risk in the financial sector.
    Keywords: climate change; transition risk; disclosure; net zero; green finance; credit risk
    JEL: C58 E58 G11 G32 Q51 Q56
    Date: 2022–01–01
  12. By: Kurani, Kenneth S
    Keywords: Social and Behavioral Sciences, zero emission vehicles, purchasing decisions, consumer behavior
    Date: 2022–04–14
  13. By: Todd, Mike; Scora, George; Luo, Jill
    Abstract: This report details the development and application of a spreadsheet tool which enables the evaluation and use of electric and hydrogen Zero Emission Vehicles (ZEVs) within the Caltrans fleet. The spreadsheet tool assists with both the placement of ZEVs and determining placement of new fueling stations to obtain the maximum benefit. The ZEV tool created as a result of this project allows Caltrans to maximize the usage of ZEVs that will be procured within Caltrans. The ZEV tool enables a strategic adoption of ZEVs within the Caltrans fleet by analyzing: fleet parameters, vehicle technology, vehicle usage, refueling infrastructure development, and operational needs. This report summarizes how available information, trip activity, and EVSE have been integrated within a database tool to analyze ZEV integration possibilities. The ZEV tool development provides Caltrans an architecture to integrate evolving data and fleet characteristics while optimizing ZEV placement and utilization into the future. Caltrans staff will be able to utilize the ZEV tool to strategically select vehicles as ZEV capable based on vehicle specifications, refueling infrastructure, and prior vehicle activity. The ZEV tool provides evaluation techniques by vehicle classification, region or refueling/charging capabilities. Utilization of the tool will assist California in the transition to ZEV platforms that are either battery electric or hydrogen fuel cell. The report serves as a guide to utilize the ZEV tool for deployment of ZEVs in the Caltrans fleet while maintaining or improving the effectiveness of operations. The optimized deployment strategy includes the operational and performance criteria of ZEVs while considering the location of refueling/recharging stations for EVSE (electric vehicle supply equipment) and hydrogen ZEVs. View the NCST Project Webpage
    Keywords: Business, Engineering, Zero Emission Vehicles, ZEV analysis, ZEV compatibility, ZEV utilization, database tool, trip activity analysis, EVSE utilization, hydrogen refueling, hydrogen refueling utilization, vehicle range analysis, vehicle utilization
    Date: 2022–04–01
  14. By: Belloni, Marco; Kuik, Friderike; Mingarelli, Luca
    Abstract: In recent years there has been growing attention on the risks posed by climate change. One relevant question for financial stability is to which extent the materialisation of transition risks emerging from the sudden implementation of climate change mitigation policies would impact the financial system. In this paper we analyze the effects of changes in carbon price on the European banking system. We assess this climate change transition risk through a banking sector contagion model where firms are negatively impacted by an increase in carbon prices. Using a unique granular dataset we evaluate the consequences of a combination of different increases in carbon prices and firm emission reduction strategies. We find that taking early policy action, implying more gradual changes in carbon prices, is not expected to lead to adverse impacts on the banking system, especially if firms reduce their emissions efficiently. Conversely, a disorderly, abrupt transition to a low carbon economy requiring very high sudden changes in carbon prices might have disruptive effects on the financial system, especially if firms fail to reduce their emissions. JEL Classification: Q48, Q54, Q58
    Keywords: climate change, empirical banking, financial networks, transition risk
    Date: 2022–03
  15. By: KANEMOTO Yoshitsugu
    Abstract: The electricity market reform in Japan, ongoing since 2015, is difficult to understand, because it includes a wide range of policy measures, and the electricity system has complicated technical characteristics. Furthermore, the reforms in many other developed countries are about ten years ahead of Japan, and there is a lot to learn from their successes and failures. This paper reviews the economic aspects of the electricity market, using a simplified model of an electricity network. The difference from the standard microeconomic model is the special feature of the current electricity market, for which, in order to avoid a blackout, supply must follow demand continuously because demand is not price-responsive in the short run. This paper examines basic short-run and long-run issues that can be handled in a deterministic model with no uncertainty, specifically, the properties of the optimal solution concerning dispatching, network access, and transmission expansion, and the market design necessary to achieve the optimal solution.
    Date: 2021–03
  16. By: D'Orazio, Paola; Hertel, Tobias; Kasbrink, Fynn
    Abstract: Climate change poses several risks to the value of financial assets and financial stability. The study conducted in this paper focuses on the German banking sector and estimates its exposure to climate risks arising from a transition to a carbon-neutral economy. Our analysis identifies the energy, transportation, and manufacturing sectors as the most sensitive to transition risks and shows that the German banking sector's direct exposure to climate transition risks is non-negligible. Moreover, it points out that an amplified exposure to transition risks characterizes large private banks. These findings are comparable to other countries' exposures and relevant to financial supervision and regulation, calling for increased engagement to assess, measure, and manage climate-related financial risks.
    Keywords: Climate-related financial risks,transition risks,banking sector,climate policy,climate neutrality,climate-related prudential regulation
    JEL: E58 G21 Q53 Q54
    Date: 2022
  17. By: Hollingsworth, Alex; Jaworski, Taylor; Kitchens, Carl; Rudik, Ivan (Cornell University)
    Abstract: We develop a spatial equilibrium model to evaluate the efficiency and distributional impacts of the leading air quality regulation in the United States: the National Ambient Air Quality Standards (NAAQS). We link our economic model to an integrated assessment model for air pollutants which allows us to capture endogenous changes in emissions, amenities, labor, and production. Our results show that the NAAQS generate over $23 billion of annual welfare gains. This is roughly 80 percent of welfare gains of the second-best NAAQS design, but only 25 percent of the first-best emission pricing policy. The NAAQS benefits are concentrated in a small set of cities, impose substantial costs on manufacturing workers, improve amenities in counties in compliance with the NAAQS, and reduce emissions in compliance counties through general equilibrium channels. These findings highlight the importance of accounting for geographic reallocation and equilibrium responses when quantifying the effects of environmental regulation.
    Date: 2022–03–11
  18. By: Bernard, René; Tzamourani, Panagiota; Weber, Michael
    Abstract: This paper studies the causal effect of providing information about climate changeon individuals' willingness to pay to offset carbon emissions in a randomizedcontrol trial. Receiving truthful information about ways to reduce CO2 emis-sions increases individuals' willingness to pay for CO2 offsetting relative to thecontrol group. Individuals receiving information about the behavior of peersreact similarly to those receiving information about scientific research. Individ-uals' responses vary depending on their socio-demographic characteristics andalso along a rich set of prior beliefs and concerns regarding climate change. Ina follow-up survey, we study the endogenous information acquisition of surveyparticipants and show that individuals choose information that aligns with theirviews. Individuals who choose to receive information about climate changehave a higher willingness to pay for CO2 offsets.
    Keywords: Climate change,information treatment,willingness to pay,CO2 compensation,information acquisition
    JEL: D10 D83 D91 Q54
    Date: 2022
  19. By: Bucher, Florian; Scheu, Lucas; Schröpf, Benedikt
    Abstract: This study examines the link between economic complexity and environmental quality by exploiting the similar starting points of the former socialist transition countries after the fall of the iron curtain. We refer to the extended theories of the Environmental Kuznets Curve (EKC), stating that environmental pollution follows an inverted u-shaped course with respect to economic complexity. Using comprehensive data of 27 countries for the period 1995-2017, our results show that the EKC can be found for countries whose complexity rose over time. Additionally, since the results for production-based and consumption-based CO2 emissions are similar, we can discard emissions offshoring as a major explaining factor. Consequently, our findings suggest that more complex products are the drivers of the EKC. However, as the turning point is associated with high levels of pollution, our estimates imply that complexity may even exacerbate environmental issues in the short and middle run in less developed countries.
    Keywords: Economic Complexity,Environmental Kuznets Curve,Former Socialist States
    JEL: O44 P28
    Date: 2022
  20. By: Axenbeck, Janna; Niebel, Thomas
    Abstract: Although information and communication technologies (ICT) consume energy themselves, they are considered to have the potential to reduce overall energy intensity within economic sectors. While previous empirical evidence is based on aggregated data, this is the first large-scale empirical study on the relationship between ICT and energy intensity at the firm level. For this purpose, we employ administrative panel data on 28,600 manufacturing firms from German Statistical Offices collected between 2009 and 2017. Our results confirm a statistically significant and robust negative link between software capital as an indicator for the firm-level degree of digitalization and energy intensity, but the effect size is rather small. Hence, we conclude that energy intensity reductions related to the use of digital technologies are lower than expected.
    Keywords: ICT,Firm-level panel data,Energy intensity improvements
    JEL: D22 D24 L60 O12 O14 O33 Q40
    Date: 2021
  21. By: Mr. Rodolfo Maino; Drilona Emrullahu
    Abstract: Fragile states in sub-Saharan Africa (SSA) face challenges to respond to the effects of climate shocks and rising temperatures. Fragility is linked to structural weaknesses, government failure, and lack of institutional basic functions. Against this setup, climate change could add to risks. A panel fixed effects model (1980 to 2019) found that the effect of a 1◦C rise in temperature decreases income per capita growth in fragile states in SSA by 1.8 percentage points. Panel quantile regression models that account for unobserved individual heterogeneity and distributional heterogeneity, corroborate that the effects of higher temperature on income per capita growth are negative while the impact of income per capita growth on carbon emissions growth is heterogeneous, indicating that higher income per capita growth could help reduce carbon emissions growth for high-emitter countries. These findings tend to support the hypothesis behind the Environmental Kuznets Curve and the energy consumption growth literature, which postulates that as income increases, emissions increase pari passu until a threshold level of income where emissions start to decline.
    Keywords: climate change, fragile states, climate risk
    Date: 2022–03–18
  22. By: Ignaciuk, Wiktor; Sulewski, Piotr
    Abstract: The aim of the study was to assess the current development of the agricultural biogas industry in Poland and to indicate the key factors determining the possibility of popularizing this category of renewable energy in the coming years. The article is based on secondary data. The study uses statistical data on agricultural biogas production from the statistics of Eurostat, the Energy Regulatory Office, and the National Center for Agricultural Support. The S-C-P (Structure-Conduct-Performance) analysis was used to synthetically present the collected material and assess the situation of the Polish agricultural biogas industry. The agricultural biogas plants operating in Poland produced only about 325 million3 biogas in 2020, from which 689 GWh of electricity was generated. This constitutes a small part of the biogas potential of Polish agriculture (various studies indicate the potential in the range of 1.6-4.2 billion m3 of agricultural biogas from organic fertilizers produced on farms). Electricity obtained from agricultural biogas covers less than 0.4% of the domestic demand. Despite the ambitious plans created several years ago, the development of the agricultural biogas industry has been practically halted. The main reason for this is great dependence on the system of support with public funds. Further development of the biogas industry requires stable financial support. Despite negative historical experiences, it can be expected that the development of the industry will accelerate in the coming years. This is because agricultural biogas has many advantages relevant to the challenges of the European Green Deal. However, there is a need for raising the awareness among policymakers of the environmental and economic benefits resulting from the dissemination of agricultural biogas production.
    Keywords: Agricultural and Food Policy, Environmental Economics and Policy
    Date: 2021–09–23
  23. By: Tatsuya Abe
    Abstract: This paper examines the efficiency and distributional effects of the fuel tax and feebate policies. I employ a model with households' two-stage decisions on car ownership and utilization and estimate model parameters by combining micro-level data from a household survey and macro-level aggregate data for the Japanese new car markets from 2006 through 2013, with a car price endogeneity being dealt with. Counterfactual analyses show that the Japanese feebate results in a significant increase in social welfare while augmenting environmental externalities. In particular, the rebound effect induced by the feebate cancels out about 7% of the reduction in CO2 emissions that would originally have been attained by the fuel economy improvement. In addition, I find that the fuel tax at the current tax rate in Japan is 1.7 times less costly than the product tax, an alternative feebate scheme considered in the counterfactuals, in all income classes to reduce environmental externalities by the same amount, with no difference between the regressivity of the two policies.
    Date: 2022–03
  24. By: Roy, Avipsa; Law, Mankin
    Abstract: Electric vehicles (EV) are an emerging mode of transportation that has the potential to reshape the transportation sector by significantly reducing carbon emissions thereby promoting a cleaner environment and pushing the boundaries of climate progress. Nevertheless, there remain significant hurdles to the widespread adoption of electric vehicles in the United States ranging from the high cost of EVs to the inequitable placement of EV charging stations (EVCS). A deeper understanding of the underlying complex interactions of social, economic, and demographic factors which may lead to such emerging disparities in EVCS placements is, therefore, necessary to mitigate accessibility issues and improve EV usage among people of all ages and abilities. In this study, we develop a machine learning framework to examine spatial disparities in EVCS placements by using a predictive approach. We first identify the essential socioeconomic factors that may contribute to spatial disparities in EVCS access. Second, using these factors along with ground truth data from existing EVCS placements we predict future ECVS density at multiple spatial scales using machine learning algorithms and compare their predictive accuracy to identify the most optimal spatial resolution for our predictions. Finally, we compare the most accurately predicted EVCS placement density with a spatial inequity indicator to quantify how equitably these placements would be for Orange County, California. Our method achieved the highest predictive accuracy (94.9%) of EVCS placement density at a spatial resolution of 3 km using Random Forests. Our results indicate that a total of 74.18% of predicted EVCS placements in Orange County will lie within a low spatial equity zone – indicating populations with the lowest accessibility may require the highest investments in EVCS placements. Within the low spatial equity areas, 14.86% of the area will have a low density of predicted EVCS placements, 50.32% will have a medium density of predicted EVCS placement, and only 9% tend to have high EVCS placements. The findings from this study highlight a generalizable framework to quantify inequities in EVCS placements that will enable policymakers to identify underserved communities and facilitate targeted infrastructure investments for widespread EV usage and adoption for all.
    Date: 2022–02–22
  25. By: Lozano, Mark T.; Kendall, Alissa; Arnold, Gwen; Harvey, John T.; Butt, Ali A.
    Abstract: Spurred in part by state-level climate policies, California cities and counties have released climate action plans (CAPs) over the last decade to set emissions reduction targets and outline actions that will help meet those goals. However, the state provides little guidance to jurisdictions on how to produce these plans. The range of information included in CAPs varies dramatically across jurisdictions. Additionally, little is known about how jurisdictions transition from the planning to the implementation phase of climate action, or what major factors influence their decision-making process. Other state laws promote emissions reductions in disadvantaged communities, highlighting the importance of making equity a key consideration in CAPs. Researchers at the University of California, Davis assessed and scored over 30 CAPs released between 2009 and 2020 based on the degree to which they addressed three themes: emissions reductions, cost, and equity. The researchers also surveyed local agency staff from 25 California jurisdictions with published CAPs about the importance of different factors during climate action planning and implementation, the inclusion of equity impacts in CAPs, sources of funding, and more. Finally, the researchers developed a set of guiding questions to assist jurisdictions in developing CAPs that include equity considerations both broadly and by specific sector. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Climate change, Costs, Equity (Justice), Local government, Pollutants, Strategic planning
    Date: 2022–03–01
  26. By: Rose, Julian; Bensch, Gunther; Munyehirwe, Anicet; Peters, Jörg
    Abstract: Charcoal is an important cooking fuel in urban Africa. In this paper, we estimate the current number of charcoal users and project trends for the coming decades. Charcoal production is often not effectively regulated, and it hence contributes to forest degradation. Moreover, charcoal has adverse health effects for its users. At the same time, charcoal constitutes an important income source in deprived rural areas, while the current alternative, gas, is a mostly imported fossil fuel. We find that 195 million people in sub-Saharan Africa rely on charcoal as their primary cooking fuel and gauge that another 200 million use charcoal as secondary fuel. Our scenarios suggest that clean cooking initiatives are outweighed by strong urban population growth and hence charcoal usage is expected to remain high over the coming decades. Policies should therefore target end-users, forest management, and regulation of charcoal production to enable sustainable production and use of charcoal.
    Keywords: Energy consumption,charcoal,Africa
    JEL: Q56 Q58 Q40 Q41 Q20 R11 O10
    Date: 2022
  27. By: Anderson, Anders (Mistra Center for Sustainable Markets (Misum)); Hong, Harrison (Columbia University)
    Abstract: Electric bikes are a potentially important tool to address global warming since they can be a viable alternative to cars in urban areas. Governments are using subsidies to promote household adoption. Welfare analyses are challenging, requiring pass-through estimates from transactions, incidence of non-additionality (i.e. those who would have bought even without the subsidy), and resulting substitution from driving. We combine administrative, insurance and survey data from a large-scale Swedish subsidy program in 2018, which is similar to other programs around world, to evaluate these implications. We find (1) complete pass through of the average $500 subsidy to consumers, (2) a near doubling of E-bikes sold but one-third of adopters are non-additional; and (3) a savings of 1.3 tons of carbon emissions during the life of the E-bike. Combining these estimates, an E-bike subsidy program can only be justified with a social cost of carbon that is several hundred dollars higher than what is typically used.
    Keywords: Sustainability; household behavior; subsidies; carbon emissions; welfare analysis
    JEL: G50 H20
    Date: 2022–03–09
  28. By: Barbara Annicchiarico (DEF and CEIS, Università di Roma "Tor Vergata"); Fabio Di Dio (Institute for Globally Distributed Open Research and Education (IGDORE)); Francesca Diluiso (Mercator Research Institute on Global Commons and Climate Change)
    Abstract: This paper studies the role of expectations and monetary policy on the economy’s response to climate actions. We show that in a stochastic environment and without the standard assumption of perfect rationality of agents, there is more uncertainty regarding the path and the economic impact of a climate policy, with a potential threat to the ability of central banks to maintain price stability. Market beliefs and behavioral agents increase the trade-offs inherent to the chosen mitigation tool, with a carbon tax entailing more emissions uncertainty than in a rational expectations model and a cap-and-trade scheme implying a more pronounced pressure on allowances prices and inflation. The impact on price stability is worsened by delays in the implementation of stringent climate policies, by the lack of confidence in the ability of central banks to keep inflation under control, and by the adoption of monetary rules tied to expectations rather than current macroeconomic conditions. Central banks can implement successful stabilization policies that reduce the uncertainty surrounding the impact of climate actions and support the greening process while staying within their mandate.
    Keywords: Climate policy; monetary policy; expectations; inflation; market sentiments; business cycle.
    JEL: D83 Q50 E32 E71
    Date: 2022–03–25
  29. By: Matsumoto, Deanna; Mace, Caitlin; Reeb, Tyler; O'Brien, Thomas
    Abstract: Critical to freight movement in Southern California are environmental plans at the Port of Los Angeles (POLA) and Port of Long Beach (POLB). The combined port complex is the single largest fixed source of air pollution in the South Coast Air Basin. This white paper presents three case studies from the San Pedro Bay Ports Clean Air Action Plan (CAAP), including brief analyses of their effects on freight movement in the region. This research also includes a case study of a private-sector, yet-to-be-built infrastructure project designed to support the faster movement of freight out of the San Pedro Bay Ports called the Southern California International Gateway (SCIG). The case studies are provided to elucidate how self-regulating agreements and operator-led programs contribute to regional environmental goals for freight operations. The findings indicate in part that stakeholder power relationships influence the ability to both develop environmental strategies and determine their outcomes. They also indicate that port-focused plans are more effective when their impact on the entire supply chain is considered. The research also helps to illustrate examples of unintended consequences of freight-related environmental measures which will prove useful to policymakers and operators alike. View the NCST Project Webpage
    Keywords: Business, Law, Ports, Clean Air Action Plan, Emissions, Drayage, Ocean Going Vessels, Vessel Speed Reduction, Air Quality Action Plans, global supply chain, intermodal rail, freight, cargo handling equipment, ZE trucks
    Date: 2022–03–01
  30. By: Edward J. Balistreri; Maxwell Brown
    Abstract: We propose a method for calibrating an industry-level technology to engineering (bottom-up) estimates with a particular focus on abatement opportunities. As a demonstration, substitution elasticities across inputs are adjusted in the nested cost function for the electricity sector to best fit a target marginal abatement cost (MAC) curve derived from engineering assessments of available technologies. This approach is unique because the elasticities are optimized over an entire relevant range of the bottom-up estimates, whereas other techniques use information local to point estimates under little or no abatement. In the context of fitting to a given MAC we evaluate alternative nesting structures and find that, while complexity in nesting improves the fit, even relatively simple nesting structures can reasonably approximate the target MAC. In our example, focused on the electricity sector, we find standard elasticities adopted in top-down models moderately overstate abatement costs relative to the engineering targets. This conclusion, however, is sensitive to our assumption about output-intensity abatement and consumer price responsiveness, both of which are not delineated in engineering estimates.
    Date: 2022–03
  31. By: Lisa Bagnoli
    Abstract: This Ph.D. thesis focuses on the social and distributional effects of public policies, whether these are intended or not. To address the topic, I categorize public policies along two dimensions. First, I distinguish between policies with explicit social objectives and those without. Second, I distinguish between policies targeting specific vulnerable groups and those covering the whole population. The thesis consists of three empirical evaluations in three different contexts and sectors. The first chapter analyzes the introduction of a public policy with explicit social objectives and an explicit targeting of the most vulnerable. I focus on the impact of a social subsidy on electricity prices on the likelihood of energy poverty of vulnerable households in Spain. The second chapter assesses a public policy with social objectives but not directly targeted to the most vulnerable population. I investigate the heterogeneous health impact of the introduction in Ghana of free health insurance for all children. Finally, the third chapter analyzes the case of a policy without explicit social objectives or targeting. In this case I evaluate the unintended distributional effects of the introduction of a railroad in Kazakhstan through its effects on trade by the local population.
    Abstract: Chapter 1: How effective has the electricity social rate been in reducing energy poverty in Spain? This chapter analyzes whether the introduction of an electricity social rate was effective in reducing the likelihood of energy poverty. We focus on the Bono Social de Electricidad, introduced in 2009 in Spain's electricity market, a policy aimed at increasing the affordability of electricity by entailing a discount on prices for vulnerable consumers. Using data from the family budget surveys from 2006 to 2017, we rely on a difference-in-differences approach to measure its causal impact on energy poverty. We show that, on average, the introduction of the policy has reduced the likelihood of energy poverty. However, the magnitude of the effect is quite modest in practice as it takes only 59,000 households out of energy poverty out of the 2.8 million households still in that situation in 2018. It is noteworthy that the results also show that the lower effective prices do not lead an increase of the beneficiaries consumption of electricity. Overall this chapter provides new evidence on the institutional determinants of energy poverty and highlights the importance of assessing the magnitude of the effects as well as the targeting strategy of public policies to make the most of the resources allocated to social policies.
    Abstract: Chapter 2: Does health insurance improve health for all? Heterogeneous effects on children in Ghana. This chapter investigates the extent to which the impact of a policy depends on the characteristics of the beneficiaries but also on the institutional capacity of the decentralized implementing agencies. To do so, I analyze the case of Ghana’s National Health Insurance Scheme (NHIS) that provides free coverage for all children. I exploit the Multiple Indicator Cluster Survey of 2011 and I use propensity score matching to account for selection in the scheme. The study finds that, even though the NHIS is successful on average in improving health outcomes among insured children in Ghana, gains are not shared equally across regions. The positive impact of health insurance is entirely concentrated among the lower-income households in regions with a high quality of public health care. This chapter sheds a new light on the mixed results of the literature on the impact of health insurance on health outcomes. It provides an understanding of the sources of the heterogeneous impact of a National Health Insurance Scheme and highlights the importance of context and implementation as drivers of its effectiveness.
    Abstract: Chapter 3: Distributional effects of colonial railroads: Evidence from Kazakhstan. This chapter analyzes how the gains from a major public investment in railways undertaken without any explicit social objectives are shared among the population. More specifically, we study the distributional effect of Orenburg-Tashkent railroad constructed by the Russian Empire through Kazakh steppes in 1905-1906. The analysis is based on a unique historical dataset allowing us to provide evidence from a quasi-natural experiment to compare economic outcomes of households of varying wealth located in districts close and far from the railroad. We focus on the impact of the investment on the trading activities of households.We find that wealthier households benefited disproportionately more in trading activities from railroad closeness, whereas the trading activity of the poorer strata located closer to the railroad decreased. The colonial railroad appears affecting the indigenous population mostly through bringing in Russian peasant settlements rather than by reducing costs of long-distance trade. This paper provides novel evidence of the distributional effects of transportation infrastructure within regions. It further stresses the short and medium term social risks associated with failures to consider explicitly all the welfare impact of major public investments rather than just focusing on their long term growth payoffs.
    Abstract: Conclusion: The analysis of these three case studies documents the diversity of social and distributional concerns arising from public policies. By studying different contexts with different methodological approaches, this thesis points to the importance of: (1) assessing ex-ante the size of the effects to reduce the risk of misuse of resources; (2) matching the targeting of beneficiaries with the stated policy objectives; (3) matching implementation strategies with institutional capacity; (4) considering the likely heterogeneity of direct impacts and their causes; and (5) considering explicitly the possibility of unintended or indirect social and distributional effects of policies to adopt mitigating solutions as needed. Overall, such evidence is relevant for both the evaluation and monitoring of existing policies as well as for the implementation of new policy reforms.
    Keywords: Public policies, social effects, distributional effects, energy, health, transport
    Date: 2022–02–21
  32. By: Khan, Sidra
    Abstract: This research study explores the impact of Green Human Resource Management practices such as Green Recruitment & Selection, Green Training & Development, Green Employee Empowerment, Green Rewards & Compensation and Green Performance Management on Environmental Performance in context with textile sector. In today’s fast moving world where manufacturing and production industries are in vogue, so there is a huge requirement to follow these Green HRM practices to minimize the usage of electricity and power, for the proper utilization of resources and for the sustainability of environment. The data was analyzed by using partial Least Square (PLS) and structural Equation Modeling (SEM) and the discrepancies in relationships were reported. The outcomes of this research study will not only help employees but also help students to study and explore more about Green Human Resource Management activities and their applications in organization for the sustainability of environment. This research will also helpful for the managers or supervisors who can initiates GHRM practices in their firms or workplaces to make the environment green.
    Keywords: Green HRM, Environment, Sustainability, Textile sector, developing country, PLS-SEM
    JEL: L8 L88 M1
    Date: 2022
  33. By: Niftiyev, Ibrahim
    Abstract: Azerbaijan’s economy has been investigated within Dutch disease (DD) and Natural Resource Curse Theory (NRCT) several times during the last 20-22 years, but the studies relied on heavily aggregated data and speculative theoretical models. Opinions differ in academia as to how and to what extent these phenomena happened. However, we are still of the assertion that non-oil manufacturing, in general, has experienced adverse effects since the huge oil revenue found its way into the Azerbaijani economy because the cost of non-oil production rose and competitiveness declined due to the domestic inflationary pressures. Meanwhile, subsectoral and specific parts of non-oil economy have not been studied in more detail. This working paper invites to consider textile and chemical subsectors as de-industrialized economic subsectors due to the oil boom’s take over since 2005 and 2006 in Azerbaijan. The descriptive analysis shows that the textile subsector is less likely to be relevant from a de-industrialization standpoint after the collapse of the Soviet Union; however, certain chemical subsectors seem to strongly react to the oil boom. Still, this does not mean that we have nothing to worry about the output of the textile industry. These results can be supported by quantitative and empirical works, but not limited to. Qualitative methods can generate new insights on microeconomic levels (i.e., factory or industrial park) about non-oil manufacturing in the Azerbaijani economy to reveal potential adverse/positive effects of oil-led economic growth and development. This working paper and upcoming works can be a useful framework for the government officials and decisionmakers to follow more thorough industrial policies to recover non-oil industrial potential of the Azerbaijani economy in a short period.
    Keywords: Azerbaijan economy,chemical subsectors,de-industrialization,Dutch disease,economic subsectors,industrial output,natural resource curse theory,non-oil industry,textile subsectors
    JEL: D04 E32 L6 O14 O52 O53
    Date: 2022
  34. By: Bridget Hoffmann (Inter-American Development Bank); Juan Pablo Rud ((Royal Holloway, University of London/IFS)
    Abstract: We use high-frequency data on fine particulate matter air pollution (PM 2.5) at the locality level to study the effects of high pollution on labor supply decisions and hospitalizations for respiratory disease in the metropolitan area of Mexico City. We document a negative, non-linear relationship between PM 2.5 and same-day labor supply, with strong effects on days with extremely high pollution levels. On these days, the average worker experiences a reduction of around 7.5% of working hours. Workers partially compensate for lost hours by increasing their labor supply on days that follow high-pollution days. Informal workers reduce their labor supply less than formal workers on high-pollution days and also compensate less on the following days. This suggests that informal workers may experience greater exposure to high pollution and greater reductions in labor supply and income. We provide evidence that reductions in labor supply due to high pollution are consistent with avoidance behavior and that income constraints may play an important role in workers’ labor supply decisions.
    Date: 2022–01
  35. By: Guilherme MAGACHO; Etienne ESPAGNE; Antoine GODIN
    Abstract: This article analyses the impact of the introduction of the Carbon Border Adjustment Mechanism (CBAM) on the European Union (EU) trade partners, focusing especially on its potential socio-economic and external consequences for developing and emerging economies. It uses trade data and Multi-regional Input-Output (MRIO) matrices to investigate the geographically and sectorally uneven distribution of CBAM’s impacts. The introduction of CBAM by the EU is under discussion, and most of the literature on the topic has analysed the consequences for the EU economies. However, this carbon adjustment mechanism, which seeks to reduce the incentives for firms to outsource their carbon emissions and promote a more generalized low-carbon transition, might disproportionally impact some non EU economies. Despite most carbon revenues would be generated by Russia, China and Ukraine, the degree of exposure of economies that export the CBAM products to Europe varies substantially, with many developing economies having more than 2% of their exports, and 1% of their production impacted by this measure. East European economies, mainly in the Balkans, as well as Mozambique, Zimbabwe and Cameroon, in Africa, are those where exports are the most exposed. In socioeconomic terms, we can also include Morocco and Tajikistan in the group of most exposed economies. CBAM is certainly an important step towards a European pricing carbon dynamics. Its implementation conditions may also promote a global (rather than local) lowcarbon transition if the carbon revenues generated by this mechanism are used to support the most impacted developing countries outside the EU.
    JEL: Q
    Date: 2022–03–10
  36. By: Edmond Noubissi (University of Dschang, Cameroon); Loudi Njoya (University of Dschang, Cameroon)
    Abstract: This paper contributes to the literature on the relationship between gender and the environment. There are indeed very few studies on this topic, and existing studies have not yet investigated the channels through which women's presence in parliaments affects the environment. We use a stochastic impact model extended to the population, wealth and technology regression model to estimate both the effect and transmission of women parliamentarians on the environment in 25 African countries from 2000 to 2016. The empirical results show that the presence of women in parliament contributes to the improvement of environmental quality in Africa. In addition, the mediation analysis reveals that women parliamentarians not only have a direct positive effect on the environment but also a positive indirect effect through their impact on per capita income, corruption and development assistance. To enhance the positive effects of women parliamentarians on the environment, governments should design policies to encourage women to participate in economic activities, integrate anti-corruption programmes and participate in the management of development assistance.
    Keywords: Women's parliamentary, environmental quality, African countries
    JEL: F63 F64 J16
    Date: 2021–01
  37. By: Sorgho, Zakaria; Tharakan, Joe (Université catholique de Louvain, LIDAM/CORE, Belgium)
    Abstract: This paper assesses the effectiveness on climate change mitigation of the environmental-related commitments contained in preferential trade agreements (PTAs). The starting question is does any PTA with environmental provisions reduce emissions? Because of a lack of detailed data on PTAs, the academic literature on the role of PTAs with environmental provisions (PTAwEP) in global climate governance remains limited. A novel and detailed database identifying nearly 300 different types of environmental provisions from more than 680 PTAs since 1947 allows us to distinguish the PTAs with climate-related provisions (PTAwCP) from those with provisions related to other environmental issues. Using panel data covering 165 countries over the period 1995 to 2012, controlling for endogeneity issues, our main result shows that PTAwCP statistically reduce the emissions while the effect of PTAs with provisions related to other environmental issues remains a negative but not significant on emissions. Our results suggest that it is rather the specific climaterelated provisions in PTAwEP that positively affect the environmental quality. Thus, to be effective in terms of mitigating climate change, PTAwEP should contain climate-related commitments.
    Keywords: Preferential trade agreements ; Climate-related provisions ; Environmental policy ; Greenhouse gases ; Global warming ; Climate change
    JEL: F13 F18 Q51 Q54
    Date: 2022–01–01
  38. By: Enste, Dominik; Potthoff, Jennifer
    Abstract: Fliegen gilt als besonders klimaschädliche Art des Reisens. Vor allem die junge Generation engagiert sich beim Klimaschutz - wie zum Beispiel bei 'Fridays for Future'. Zugleich wollen junge Menschen kaum auf Flugreisen verzichten. Wie kann dieser Zielkonflikt überwunden werden? Um Stakeholder zu ökologischeren Flugreisen zu motivieren, analysierte die Verhaltensökonomie u. a. diese Lösungsansätze: Gezielte Informationsbereitstellung über den CO2-Verbrauch von Flügen während der Online-Flugsuche von Konsumenten und Feedback über den Kerosinverbrauch und konkrete Treibstoffeinsparungsziele für Piloten.
    Date: 2022
  39. 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)
    Abstract: This paper aims to define an unified framework to analyse pollution-adjusted productivity change. Equivalence conditions for the additive and the multiplicative pollutionadjusted productivity measures (Abad and Ravelojaona, 2022, 2021) are established.
    Keywords: Environmental Distance Functions,Pollution-generating Technology,Non Convexity,Pollution-adjusted Productivity Indices
    Date: 2022–03–01
  40. By: Adrian, Fernandez-Perez; Ana-Maria, Fuertes; Joelle, Miffre
    Abstract: This paper sheds light on the negative pricing of the May 2020 WTI futures contract (CLK20) on April 20, 2020. The super contango of early 2020, triggered by COVID-19 lockdowns and geopolitical tensions, incentivized cash and carry (C&C) traders to be long CLK20 and short distant contracts, while simultaneously booking storage at Cushing. Our investigation reveals that C&C arbitrage largely contributed to the lack of storage capacity at Cushing in April 2020 and the price crash relates to the reversing trades of many long CLK20 traders without pre-booked storage. Additional aggravating factors included a liquidity crush, staggering margin calls and potential price distortions due to the trade-at-settlement mechanism. The analysis suggests that claims from experts that hold index trackers responsible for the crash are unwarranted: Index trackers did not trigger the negative pricing, nor widen the futures-spot spread by rolling their positions to more distant contracts ahead of maturity.
    Keywords: WTI crude oil futures contract; Negative price; Contango; Cash and carry; Index trackers; Disinformation
    JEL: G1 G13 Q4
    Date: 2022–02–23
  41. By: Riehl, Kevin; Kiesel, Florian; Schiereck, Dirk
    Abstract: Green innovation and technology diffusion must be financially and commercially attractive to convince corporate decision makers. This paper focuses on the factors that determine the financial outcome of successful green innovation activities conducted by large, listed companies. We employ a cross-industry dataset including more than 97,954 reports on corporate environmentalism from 286 international listed companies. Our results indicate that economic, political, cultural, firm-specific, investor-related, and governance factors significantly determine the financial performance of green innovation, measured by abnormal returns. Moreover, we can show that factors that reduce the competition in green innovation markets benefit the financial success of firms operating via them. Finally, we find an opposing influence for several factors that benefit earlier stages of innovation (e.g., research output) while harming the later stages (e.g., market introduction and financial performance). These findings imply that a spatial separation strategy for different stages of innovation supports corporate environmentalism activities. Moreover, physical property rights, the governments’ willingness to support green technologies, and economic framework conditions such as oil price, GDP, or public R&D budget need to be balanced by policymakers to address and stimulate green innovation.
    Date: 2022
  42. By: Ali-Yrkkö, Jyrki; Hirvonen, Johannes; Rouvinen, Petri
    Abstract: Abstract This brief considers the world export market shares of Belarus, Russia and Ukraine across over five thousand commodities (the full dataset is provided online at the same web address as this brief). The aim is to provide a tool for gauging where supply chain disruptions might emerge next. Earlier discussion regarding the international trade presence of the three countries has largely revolved around crude oil and natural gas. While they also prominently appear in our analysis, foodstuffs and fertilizers (and the materials thereof) appear to be even more important. With the La Niña weather pattern affecting North American crops in the same time window, a global food catastrophe after the coming autumn, if not sooner, seems imminent. The three countries account for about 70% of sunflower oil exports globally. Their corresponding share for colza and rape oils, popular substitutes for sunflower oil, is over 25%. There are also several narrow and globally minor categories in which the three countries have huge markets shares and in which they might cause disruptions in specific supply chains; examples include specific types of fish and other seafoods. Finland is highly exposed to the consequences of the war (it should be noted, however, that the role of domestic provision in is not considered in this brief). For example, practically all of Finland’s nickel imports come from Russia, as do a significant share of methanol, sawn wood, and crude oil.
    Keywords: Ukraine, Russia, Economy, Exports, Dependency, Imports, Trade, War
    JEL: F14 F1 F51 F52
    Date: 2022–03–29
  43. By: Angela Köppl; Margit Schratzenstaller
    Abstract: As governments spend unprecedented sums of public money on pandemic related rescue and recovery measures, while humankind is facing mounting long-term challenges – and above all the climate crisis –, the question whether and to what extent COVID-19 recovery programmes contribute to countries' commitments to a sustainability oriented recovery is gaining increasing urgency. We argue that overcoming the economic and social impacts of the pandemic require deeper structural changes than a return to a more or less business as usual scenario to limit the impacts of climate change. Recovery packages should therefore be designed in such a way as to avoid fossil lock-in effects and take into account that the social and technological actions taken today will unfold their effects in the climate system with a time lag only. An interesting question in this context is the effectiveness of green recovery measures not only with regard to environmental objectives, but also concerning conventional economic indicators, which are traditionally summarised under the heading "multiplier effects". Evaluations of the economic effects of green recovery measures, e.g. those implemented during the global financial crisis, are in short supply. Most of the existing empirical analyses have an ex ante focus, while ex post evaluations are scarce. This paper aims at contributing to this research gap by providing a review of the empirical evidence of the macroeconomic effects of green recovery measures.
    Keywords: Green recovery, COVID-19 crisis, multipliers, green multipliers, transformative change
    Date: 2022–04–07
  44. By: International Monetary Fund
    Abstract: A swift policy response helped mitigate the economic impact of the twin COVID-19 and oil price shocks and contain the initial spread of the virus. A gradual recovery driven by the non-oil sector is underway, following a deep recession in 2020. Fiscal and external balances have improved with recent oil price increases. The UAE is among the world leaders in delivering vaccinations, with nearly 85 percent of the population fully vaccinated as of October 2021.
    Keywords: manufacturing sector producer price index; reform effort; CPI data; CPI basket weight; Policy discussion; liability positions vis-à-vis nonresident; Oil prices; Loans; Financial sector stability; Global
    Date: 2022–02–17
  45. By: Schmidt, Sebastian; Kinne, Jan; Lautenbach, Sven; Blaschke, Thomas; Lenz, David; Resch, Bernd
    Abstract: This Discussion Paper deals with the issue of greenwashing, i.e. the false portrayal of companies as environmentally friendly. The analysis focuses on the US metal industry, which is a major emission source of sulfur dioxide (SO2), one of the most harmful air pollutants. One way to monitor the distribution of atmospheric SO2 concentrations is through satellite data from the Sentinel-5P programme, which represents a major advance due to its unprecedented spatial resolution. In this paper, Sentinel-5P remote sensing data was combined with a plant-level firm database to investigate the relationship between the US metal industry and SO2 concentrations using a spatial regression analysis. Additionally, this study considered web text data, classifying companies based on their websites in order to depict their self-portrayal on the topic of sustainability. In doing so, we investigated the topic of greenwashing, i.e. whether or not a positive self-portrayal regarding sustainability is related to lower local SO2 concentrations. Our results indicated a general, positive correlation between the number of employees in the metal industry and local SO2 concentrations. The web-based analysis showed that only 8% of companies in the metal industry could be classified as engaged in sustainability based on their websites. The regression analyses indicated that these self-reported 'sustainable' companies had a weaker effect on local SO2 concentrations compared to their 'non-sustainable' counterparts, which we interpreted as an indication of the absence of general greenwashing in the US metal industry. However, the large share of firms without a website and lack of specificity of the text classification model were limitations to our methodology.
    Keywords: Sentinel-5P,air pollution,natural language processing,spatial regression
    JEL: Q53 Q56 R11
    Date: 2022
  46. By: Bauckloh, Michael Tobias; Beyer, Victor; Klein, Christian
    Abstract: This research examines whether stocks of firms operating in highly polluting industries ('dirty stocks') are treated like sin stocks. We assume that investors shun dirty stocks based on non-pecuniary preferences and employ screening approaches that lead to the exclusion of entire industries. Using emission data of the U.S. Toxics Release Inventory, we show that dirty stocks are held in lower proportions by institutional investors and are followed by fewer financial analysts than other stocks. The shunning leads to an outperformance of dirty stocks in cross-sectional and time-series return analyses. These observations affect all firms within a dirty industry, regardless of whether they have high or low TRI emissions. This means that comparatively clean firms are shunned by capital market participants simply because of their industry affiliation, which can result in financing disadvantages and low incentives to improve sustainability performance. Thus, our findings contribute to the understanding of environmental preferences of investors and their consequences for asset pricing.
    Date: 2022
  47. By: Wietschel, Martin; Link, Steffen; Biemann, Kirsten; Helms, Hinrich
    Abstract: Ziel der vorliegenden Studie ist es, eine ökonomische wie ökologische Bewertung für alternative Kraftstoffe und Antriebe bei PKW für Fahrzeuge der Kompaktklasse in Deutschland für 2020 und 2030 vorzunehmen. Die wirtschaftliche Bewertung erfolgt nach einem Total-Cost-of-Ownership-Ansatz, ohne Steuern, Abgaben und Subventionen anzusetzen. Die ökologische Bewertung erfolgt nach dem Life-Cycle-Assessment-Ansatz. Beim Thema Antriebswechsel bei PKWs wird die batterieelektrische Mobilität bis 2030 und darüber hinaus sehr wahrscheinlich die wichtigste Rolle spielen. Sie steht heute schon in größeren Umfang kommerziell zur Verfügung. Sie ist die wirtschaftlichste und energieeffizienteste der zur Verfügung stehenden Minderungsoptionen mit hohem Potenzial. Die Herausforderung besteht darin, dass der Geschwindigkeit der Marktdurchdringung gewisse Grenzen gesetzt sind. Plug-in-Hybride können eine Brückenfunktion einnehmen. Andere Optionen, insbesondere Biogas und auch synthetische Kraftstoffe, können durch Potenzialbegrenzungen und hohen Kosten höchsten in geringen Umfang bis 2030 zu einer Senkung der THG-Emissionen im PKW-Verkehr beitragen. Langfristig könnten noch Brennstoffzellen-PKW eine Ergänzung darstellen.
    Date: 2022
  48. By: Nahed Eddai (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Ani Guerdjikova (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: We analyze the effect of strategic ambiguity and heterogeneous attitudes towards such ambiguity on optimal mitigation and adaptation. Pessimistic players tend to invest more in mitigation, while optimists favor adaptation. When adaptation is more expensive than mitigation, three types of equilibria can obtain depending on the level and distribution of ambiguity aversion: (i) a mitigation equilibrium, (ii) an adaptation equilibrium and (iii) a mixed equilibrium with both adaptation and mitigation. The interaction between ambiguity attitudes and wealth distribution plays a crucial role for the aggregate environmental policy: a wealth transfer from pessimistic to optimistic agents increases total mitigation. A similar result applies to the choice of an optimal tax on consumption, which is shown to increase in optimism, but decrease following a transfer of income towards the more optimistic players. Finally, we show that under strategic ambiguity, the introduction of a non-binding standard can impact agents' beliefs about their opponents' behavior and as a result lower total equilibrium mitigation. Our results highlight the necessity to consider attitudes towards strategic ambiguity in the design of economic policies targeting climate change. They might also shed some light on the slow rate of convergence of environmental policies across countries.
    Keywords: Climate policy,Ambiguity,Heterogeneity,Choquet expected utility
    Date: 2021–06–01
  49. By: Jade Adler (IEP Aix-en-Provence - Sciences Po Aix - Institut d'études politiques d'Aix-en-Provence); Maxence Péan (IEP Aix-en-Provence - Sciences Po Aix - Institut d'études politiques d'Aix-en-Provence)
    Abstract: En 2015, les États du monde entier réunis lors de la conférence de Paris s'engageait à diminuer de manière significative leurs émissions polluantes et à se tourner leur économie vers la transition écologique. L'accord de Paris visait principalement à limiter de 2°C la température à l'aide de multiples mesures. Parmi ces dernières, on retrouve la volonté de créer un système financier plus vert qui accompagnerait et rendrait les flux financiers compatibles avec la lutte contre le changement climatique. Ce Rue de la Banque propose une évaluation des mesures de « finance verte » qui ont vu le jour ces dernières années sur les marchés.
    Date: 2022–03–02
  50. By: Kramarz, Teresa; Mason, Michael; Partzsch, Lena
    Abstract: The resource curse literature suggests that, in fragile states dependent on natural resource rents, structures of public accountability are weak because of an elite-controlled political economy indifferent to social and ecological interests. We examine accountability claims made by non-domestic proxy actors, holding governments and corporations accountable on behalf of communities adversely affected by natural resources extraction. This conceptualization is suggested by proxy-led transnational mobilization against mining-related damage in the Democratic Republic of the Congo. We identify an ‘hourglass’ structure of proxy actor engagement with affected communities: In a first phase, proxies rely on public mechanisms to define standards remotely. In a second phase, proxies ‘narrow’ the gap by seeking compliance information from affected communities. However, in a third phase this gap ‘widens’ again when proxies remotely seek sanctions against responsible actors. We discuss the applicability of this heuristic framework to proxy-led accountability practices in other natural resource-dependent rentier states.
    Keywords: proxy accountability; resource extraction; rentier states; Democratic Republic of the Congo; Taylor & Francis deal
    JEL: R14 J01
    Date: 2022–02–23
  51. By: Federica Daniele; Mariona Segu; David Bounie; Youssouf Camara (Université de Cergy-Pontoise, THEMA)
    Abstract: Cities are increasingly interested in developing cycling infrastructure. Yet, little is known about the (potentially heterogeneous) economic impact of such investments. We evaluate the economic impact of a large-scale cycling infrastructure investment in Paris, the Plan V´elo. Using geolocated data covering nearly the universe of French card transactions we estimate a positive and statistically significant elasticity of local revenues to bike market access. We find a larger elasticity in areas with smaller and younger establishments. The project increased the non-tradables consumption share of central/less densely populated neighborhoods at the disadvantage of peripheral/more densely populated ones.
    Keywords: cities, cycling, infrastructure investment, local economic activity
    JEL: D12 L81 L83 R2 R4
    Date: 2022
  52. By: Mats Petter Kahl (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre); Thomas Wein (Leuphana Universität Lüneburg, Institut für Volkswirtschaftslehre)
    Abstract: Competition in the German gasoline retail market is characterized by strong intraday price cycles. The cycles are described in the literature as corresponding to the well-known Edgeworth cycles. Cyclical pricing patterns are observable all over Germany and throughout the world. So far, research has focused on analyzing price patterns using average prices. We are the first to study the initiation of new price cycles by looking at the exact timing of competition in the daily cycle. We modified the data to be able to analyze local competition on a second-by-second level. What determines that a certain gasoline station increases its price to initiate a new price cycle? We are the first to empirically analyze whether the theoretically and economically significant price differences of the Edgeworth cycles explain the cyclical patterns throughout a day, or whether brand affiliation, local characteristics, or services offered predict the behavior of price increases. To provide first evidence and to do justice to the complexity of analyzing second-by-second intraday price cycles, we limit ourselves to one local market in Germany. We find that price considerations, as well as services offered, play a minor role in explaining why a gasoline station is the first to increase its price. Brand affiliation, as well as location parameters, are much more important in a gasoline stations’ decision on whether they will be the first to increase prices. Furthermore, we show that the dominant suppliers Aral and Shell, who jointly account for more than 80 percent of price increases in the market, are the major drivers of the size of the price cycles. Together, the strong results for oligopoly players Aral and Shell suggest that market power is the major driver of the cyclical pricing pattern in the gasoline market.
    Keywords: Edgeworth cycles, gasoline prices, dynamic pricing, gasoline market
    JEL: L13 L41 K21
    Date: 2022–04

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