|
on Energy Economics |
| By: | Simola, Heli |
| Abstract: | Russia's economic growth slowed substantially over the past decade. To improve its long-term growth outlook, Russia must deal with structural problems. While the country has not lacked for ambitious development plans, the results of late have been rather thin. We discuss some of the key challenges facing the Russian economy and policy responses. Considering Russia's recent economic policy in light of the economic literature and potential reasons for its successes and failures, we suggest the focus of the country's current economic policy framework is too narrowly drawn to achieve a significant acceleration in long-term growth. |
| Keywords: | Russia,economic policy,development plans,economic growth |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofitb:112021&r= |
| By: | Paul J. J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | The launch of Russia’s war of aggression against Ukraine on February 24th, 2022, has resulted in great suffering for the people of Ukraine and has created turning point in Europe. Western countries and Japan have imposed very comprehensive sanctions against Russia, the aggressor. The country is largely politically isolated on the international stage, but seemingly has China - still - on its side. Large movements of refugees are to be expected, along with sharp price increases for gas and - somewhat less so - for oil, but also for wheat, with Russia and Ukraine being important exporter countries of that commodity representing together a combined 28% share of the world market. Some economists have suggested Germany impose an energy import boycott against Russia. A realistic analysis, however, arrives at significantly higher losses in real income than the 0.5% to 3% found, for example, by Bachmann et al. (2022), although additional retaliatory measures (e.g., tariff increases) by Russia and other effects must indeed also be considered: -6% in terms of real income and increased unemployment rates are conceivable as an overall effect in Germany; and there will be negative Russian spillover effects to central Asian countries which also have not been considered in the Bachman et al approach. On March 23rd, President Putin declared that Russia’s energy exports to “unfriendly countries” would have to be paid for in Rubles in the future, which is a clear strategic move in terms of the international economic conflict between the West and Russia. The latter could itself impose an energy supply boycott on Germany and also other EU countries. Additional supplies from, say, the US - in the form of liquefied natural gas (LNG) - would be limited in relation to the redistribution of supplies within the EU, as the pipeline network is still poorly integrated. Poland, Bulgaria, Austria, Germany and Italy are likely to face particular problems with natural gas supplies in the event of an energy import boycott. As of May 24th, 2022, US citizens will not be allowed to accept interest payments from either private Russian companies or the Russian state; this measure is peculiar and hardly compatible with the idea of a constitutional state, since even companies from Russia that are not actually in danger of bankruptcy will be artificially pushed toward bankruptcy - with the US switching to preventing Dollar bond payments to April 6th (due to the Russian massacre in Bucha, Ukraine), the first Russian bond interest payment missed concerned Russian Railways on April 11th. The very high current and expected numbers of refugees will have positive demand effects in certain countries in 2022 and positive supply effects in overall economic production thereafter. The global economy will be marked by a new economic slowdown and higher inflation rates in 2022/23; it could face a breakup into regional “blocs” and a reduced effectiveness of international economic organizations in the event of international economic conflicts. The weakening of the international legal order should be countered by OECD countries. The figures presented by the Kiel Institute for the World Economy for combined humanitarian, financial and military support to Ukraine are grossly misleading; if one takes into account the important spending on refugees from Ukraine and the corresponding (implied) pledges by OECD countries, EU spending in favour of the Ukrainian people is significantly higher than that of the US, and Germany's spending is also significantly higher than shown in the Kiel study. A new and lasting order for peace in Europe is urgently required. An EU eastern enlargement to include Ukraine will bring about new BREXIT-type risks and could destabilize the EU considerably. |
| Keywords: | Ukraine war, Russia sanctions, economic effects of the war in Ukraine, US, EU, international economic order, aid for Ukraine |
| JEL: | F50 F51 N44 Q48 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei312&r= |
| By: | Werner Roeger (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Paul J. J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Keywords: | Energy Import Embargo, EU, Russia, Gas Market, Duopoly |
| JEL: | F50 F51 N44 Q48 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei314&r= |
| By: | Holtemöller, Oliver; Lindner, Axel; Schult, Christoph |
| Abstract: | Ein Stopp der russischen Gaslieferungen würde zu einer Rezession der deutschen Wirtschaft führen. Nicht alle Regionen wären davon gleich betroffen: Vor allem wäre dort, wo das Verarbeitende Gewerbe ein großes Gewicht hat, mit einem deutlich stärkeren Einbruch der Wirtschaftsleistung zu rechnen als andernorts. Deshalb wäre Westdeutschland und dort insbesondere der Süden stärker betroffen als der Osten Deutschlands. Dagegen spielt für die Frage, wie viele Arbeitsplätze durch einen bestimmten Rückgang der Wertschöpfung gefährdet sind, die Höhe der Arbeitsproduktivität eine ausschlaggebende Rolle. |
| Keywords: | Erdgas,Prognose,Regionalstruktur |
| JEL: | E37 Q43 R11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhpno:12022&r= |
| By: | Jakub Sokolowski; Marek Antosiewicz; Piotr Lewandowski |
| Abstract: | We estimate the macroeconomic and distributional effects that a ban on fuel imports from Russia would have in Poland. We simulate the embargo as a hike in oil, gas and coal prices, and evaluate the macroeconomic effects with a dynamic general equilibrium model. We soft-link it with a microsimulation model based on Household Budget Survey data to assess the impacts on various income groups. We find that the effects of an embargo on Russian fuels would be substantial but manageable. Depending on the severity of the price hikes, we expect Poland’s GDP to be lower by 0.2–3.3% by the end of 2022, and by 2.1–5.7% by 2025. Furthermore, depending on the price increases, high-income households would spend an additional 0.2–1.3% of their incomes on energy in 2022 and 0.7–1.6% in 2025, and low-income households would spend 0.3–4.7% more of their incomes on energy in 2022 and 2.6–4.8% in 2025. We suggest direct money transfers to less affluent households, and investments in alternative gas and oil supplies, energy efficiency, renewable energy and nuclear power as instruments that could ease the negative economic impacts of the embargo. |
| Keywords: | embargo; distributional effects; microsimulation; general equilibrium |
| JEL: | H23 P18 O15 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:report:rr012022&r= |
| By: | Rodier, Caroline; Harold, Brian; Zhang, Yunwan |
| Abstract: | In rural areas, cost-effective transit service is challenging due to greater travel distances, lower population densities, and longer travel times than in cities. As a result, the people who rely on public transit contend with infrequent and slow service, and keeping a sufficient number of personal vehicles in reliable working order can be prohibitively expensive for low-income families. UC Davis partnered with the eight San Joaquin Valley Metropolitan Planning Organizations to identify and support development of three innovative mobility pilot concepts for the region. The first pilot is an electric vehicle (EV) carsharing service known as Míocar, located in affordable housing complexes in eight rural communities in Tulare and Kern counties. The second is a volunteer ridesharing service, known as VOGO, which supplements existing transit services in transport-disadvantaged rural areas in San Joaquin and Stanislaus counties. The third is a Mobility-as-a-Service (MaaS) platform that allows planning and payment for fixed and demand-responsive transit services, including VOGO, in San Joaquin and Stanislaus counties. These pilots seek to (a) provide improved access to destinations for individuals with limited transportation alternatives, (b) and achieve greenhouse gas reductions through mode shifts from traditional internal combustion vehicles to EVs, ridesharing, and fixed transit. This report presents the methods and results for “before” and “after” evaluations conducted by UC Davis researchers to assess the performance and impacts of each pilot. The evaluations incorporate service usage data including telematics and MaaS application data, and survey data collected from pilot participants, to assess the programs beginning with pilot launch (2019 and2020) until November 2021. The results provide insights into participant characteristics and barriers to transportation, travel behavior, trip planning activities, and the extent to which the pilots addressed the travel needs of their target populations region. View the NCST Project Webpage |
| Keywords: | Business, Social and Behavioral Sciences, Electric vehicles, vehicle sharing, volunteer ridesharing, Mobilityas-a-Service (MaaS), social equity, rural transportation, pilot studies, low income groups, evaluation, counterfactual analysis, mode shift, increased mobility, transit access |
| Date: | 2022–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7nr194n7&r= |
| By: | Ekundayo P. Mesagan (Pan Atlantic University, Lagos, Nigeria.); Titilope C. Adewuyi (University of Lagos, Lagos, Nigeria.); Olugbenga Olaoye (Bells University of Technology, Nigeria) |
| Abstract: | This study employs the Pool Mean Group framework to investigate the impact of corporate finance and industrial performance on pollution in Africa between 1990 and 2020. The study, which focuses on 36 African nations, found that corporate financing insignificantly enhances environmental quality in the short run, while it significantly worsens the environment in the long run. Also, the result shows that industrial performance exerts a negative but insignificant impact on pollution in both the short- and long-run periods. Lastly, the interaction term between corporate finance and industrial performance has a negative and significant impact on pollution in both periods. With this striking result, the study recommends that efforts should be made to promote the growth of environmentally sound production plants in the continent through the removal of credit facilitation bottlenecks. |
| Keywords: | Corporate Finance, Industrial Performance, Pollution, Africa |
| JEL: | G3 L25 O14 Q53 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/026&r= |
| By: | Katarzyna Maciejowska; Bartosz Uniejewski; Rafa{\l} Weron |
| Abstract: | Forecasting electricity prices is a challenging task and an active area of research since the 1990s and the deregulation of the traditionally monopolistic and government-controlled power sectors. Although it aims at predicting both spot and forward prices, the vast majority of research is focused on short-term horizons which exhibit dynamics unlike in any other market. The reason is that power system stability calls for a constant balance between production and consumption, while being weather (both demand and supply) and business activity (demand only) dependent. The recent market innovations do not help in this respect. The rapid expansion of intermittent renewable energy sources is not offset by the costly increase of electricity storage capacities and modernization of the grid infrastructure. On the methodological side, this leads to three visible trends in electricity price forecasting research as of 2022. Firstly, there is a slow, but more noticeable with every year, tendency to consider not only point but also probabilistic (interval, density) or even path (also called ensemble) forecasts. Secondly, there is a clear shift from the relatively parsimonious econometric (or statistical) models towards more complex and harder to comprehend, but more versatile and eventually more accurate statistical/machine learning approaches. Thirdly, statistical error measures are nowadays regarded as only the first evaluation step. Since they may not necessarily reflect the economic value of reducing prediction errors, more and more often, they are complemented by case studies comparing profits from scheduling or trading strategies based on price forecasts obtained from different models. |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2204.11735&r= |
| By: | Ricardo Gonçalves (Católica Porto Business School and CEGE, Universidade Católica Portuguesa); Flavio M. Menezes (School of Economics, University of Queensland, Brisbane, Australia) |
| Abstract: | This paper estimates the price impacts of the unanticipated closure of Hazelwood, a large brown coal power plant (1600 MW) in Victoria, Australia. We measure the total impact of the closure on prices in Australia's National Electricity Market for each half-hour interval and for each state 3 months, 6 months, and 12 months from closure. We also break down the impact into direct and indirect effects. We fnd that the total impact of the closure on prices varies considerably across half-hours. The results vary not only in magnitude and across time, but also in statistical significance. Our estimates suggest an upper bound for the impact on the average half-hourly price of $18.90/MW 12 months from closure, with a total market impact of $4,287.7 million. When we break down the total impact into direct and indirect effects, we find the latter to be the main driver of our results. In particular, we find that the reduction in the prices because of increased wind generation in a given half hour - the merit-order effect - has decreased markedly following the closure, and this largely explains the observed price increases post-closure. |
| Keywords: | electricity markets; market impacts; closure of coal power plant. |
| JEL: | D4 L94 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:654&r= |
| By: | Thomas Hagedorn (Institute of Transport Economics, Muenster); Jan Wessel (Institute of Transport Economics, Muenster) |
| Abstract: | Based on a discrete choice experiment with 306 individuals from Germany, we examine the impact of the emissions-per-Euro-spent indicator (g/€ indicator) on people's travel behavior. This indicator, which was motivated by Hagedorn and Sieg (2019), makes cheap, but emission-intensive travel alternatives appear particularly harmful for the environment. We find that the g/€ indicator induces people to be more likely to choose the travel alternative with the lower indicator value. This effect persists even if participants are informed about general CO2 emissions. We also find that the steering effect of the g/€ indicator is stronger than for other emission indicators, especially for the costs of offsetting emissions. Our results thereby indicate that the g/€ indicator could be used as an effective steering instrument for people to rethink traveling with cheap, but emission-intensive means of transport, especially with ultra-low cost carriers. |
| Keywords: | Environmental metrics, g/€ indicator, discrete choice experiment, travel decisions, carbon dioxide emissions |
| JEL: | C35 Q50 R40 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:mut:wpaper:35&r= |
| By: | Billio, Monica; Costola, Michele; Hristova, Iva; Latino, Carmelo; Pelizzon, Loriana |
| Abstract: | The present paper proposes an overview of the existing literature covering several aspects related to environmental, social, and governance (ESG) factors. Specifically, we consider studies describing and evaluating ESG methodologies and those studying the impact of ESG on credit risk, debt and equity costs, or sovereign bonds. We further expand the topic of ESG research by including the strand of the literature focusing on the impact of climate change on financial stability, thus allowing us to also consider the most recent research on the impact of climate change on portfolio management. |
| Keywords: | environmental,social,and governance factors (ESG),credit risk,debt cost,equity cost,sovereign bonds,portfolio management |
| JEL: | M14 G24 G11 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:349&r= |
| By: | Marc Fabel; Matthias Flückiger; Markus Ludwig; Helmut Rainer; Maria Waldinger; Sebastian Wichert |
| Abstract: | We study the impact of the “Fridays for Future” climate protest movement in Germany on citizen political behavior and explore possible mechanisms. Over the course of 2019, large crowds of young protesters, most below voting age, skipped school to demonstrate for rapid and far-reaching measures to mitigate climate change. Based on cell phone-based mobility data and hand-collected information on almost 4,000 climate protests, we first construct a novel county ×rally-specific measure of protest participation, allowing us to map out how engagement in the climate movement evolved spatially and temporally. Then, using a variety of empirical strategies to address the issue of nonrandom protest participation, we show that the local strength of the climate movement led to more Green Party votes in state-level and national-level elections during 2019 and thereafter. We provide evidence suggesting that three mechanisms were simultaneously at play: reverse intergenerational transmission of pro-environmental attitudes from children to parents, stronger climate-related social media presence by Green Party politicians, and increased coverage of environmental issues in local media. Together our results suggest that environmental protests by those too young to vote provides some of the impetus needed to push society towards overcoming the climate trap. |
| Keywords: | climate protest movement, citizen political behavior |
| JEL: | D72 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9742&r= |
| By: | Unfried, Kerstin (University of Göttingen); Wang, Feicheng (University of Göttingen) |
| Abstract: | Plastic waste trade has grown considerably in the last decades and has caused severe environmental problems in recipient countries. As the largest recipient, China has permanently banned the imports of plastic waste since 2018. This paper examines the causal effect of plastic waste imports on air pollution by exploiting China's experience of importing plastic waste and the recent import ban. Combining data on plastic waste imports with PM2.5 data at the city level for the years 2000-2011, we find that plastic waste imports increased PM2.5 density significantly. This effect is linked to expanded production in the waste processing sector and an increased number of incineration. To evaluate the impact of the import ban on air quality, we employ daily data on air pollution between 2015 and 2020. Our difference-in-differences results show that affected cities, relative to other cities, experienced a significant improvement in air quality following the ban. These findings suggest potential environmental gains from banning plastic waste imports in other countries. |
| Keywords: | PM2.5, air pollution, waste import ban, plastic waste trade, China |
| JEL: | F18 F64 Q53 Q56 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15218&r= |
| By: | Mirko Draca; Jiaqi Li; Sabrina Muller; Viet Nguyen-Tien; Capucine Riom; Anna Valero |
| Abstract: | The transition to net-zero will have far-reaching but unequal effects, as 'dirty' jobs disappear while new jobs aligned with or supportive of the net-zero objective - which we refer to as 'green' - are created. As governments worldwide increase their commitments to tackling climate change, there is a growing need to quantify and characterise the 'green economy', and to identify opportunities to be seized and challenges to be overcome in the transition to the net-zero economy of the future. To shed light on green jobs and inform policy and future research, we apply a granular analytical approach to quantify and describe green jobs in the UK and EU economies. |
| Keywords: | green jobs, green economy, climate change, UK and European economies, employment and wages, Green Growth |
| Date: | 2021–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepsps:39&r= |
| By: | Ruhnau, Oliver; Schiele, Johanna |
| Abstract: | Electrolytic hydrogen complements renewable energy in many net-zero energy scenarios. In these long-term scenarios with full decarbonization, the “greenness” of hydrogen is without question. In current energy systems, however, the ramp-up of hydrogen production may cause additional emissions. To avoid this potential adverse effect, recently proposed EU regulation defines strict requirements for electrolytic hydrogen to qualify as green: electrolyzers must run on additional renewable generation, which is produced in a temporally and geographically congruent manner. Focusing on the temporal dimension, this paper argues in favor of a more flexible definition of green hydrogen, which keeps the additionality criterion on a yearly basis but allows for dispatch optimization on a market basis within that period. We develop a model that optimizes dispatch and investment of a wind-hydrogen system—including wind turbines, hydrogen electrolysis, and hydrogen storage—and apply the model to a German case study based on data from 2017-2021. Contrasting different regulatory conditions, we show that a flexible definition of green hydrogen can reduce costs without additional power sector emissions. By contrast, requiring simultaneity implies that a rational investor would build a much larger wind turbine, hydrogen electrolyzer, and hydrogen storage than needed. This leads to additional costs, underutilized resources, and a potential slow-down of green hydrogen deployment. We discuss that current trends in the energy transition are likely to amplify the economic and environmental benefits of a flexible definition of green hydrogen and recommend this as the way forward for a sustainable hydrogen policy. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:253267&r= |
| By: | Julien Lefevre (AgroParisTech, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Thomas Le Gallic (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Panagiotis Fragkos; Jean-François Mercure (University of Exeter, CAM - University of Cambridge [UK]); Yeliz Simsek (University of Exeter); Leonidas Paroussos |
| Abstract: | This paper analyses structural change in the economy as a key but largely unexplored aspect of global socioeconomic and climate change mitigation scenarios. Structural change can actually drive energy and land use as much as economic growth and influence mitigation opportunities and barriers. Conversely, stringent climate policy is bound to induce specific structural and socioeconomic transformations that are still insufficiently understood. We introduce Multi-Sectoral Integrated Assessment Models as main tools to capture the key drivers of structural change and we conduct a multi-model study to assess main structural effectschanges of the sectoral composition and intensity of trade of global and regional economiesin a baseline and 2°C policy scenario by 2050. First, the range of baseline projections across models, for which we identify the main drivers, illustrates the uncertainty on future economic pathways-in emerging economies especially-and inform on plausible alternative futures with implications for energy use and emissions. Second, in all models, climate policy in the 2°C scenario imposes only a second-order impact on the economic structure at the macrosectoral level-agriculture, manufacturing and services-compared to changes modelled in the baseline. However, this hides more radical changes for individual industries-within the energy sector especially. The study, which adopts a top-down framing of global structural change, represents a starting point to kick-start a conversation and propose a new research agenda seeking to improve understanding of the structural change effects in socioeconomic and mitigation scenarios, and better inform policy assessments. |
| Keywords: | Energy sector,Multi-sectoral macroeconomic modelling,Climate policy,Socio-economic pathways,Structural change |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03622209&r= |
| By: | Bert Van Roosebeke (International Association of Deposit Insurers); Ryan Defina (International Association of Deposit Insurers) |
| Abstract: | Whereas research regarding the impact of climate change on the global financial system is ever growing, the impact of climate change and risks related therewith on deposit insurance has remained largely undealt with in literature. As global financial standard-setters have set the treatment of climate risks high on the agenda , this Policy Brief represents the first attempt to identify five core challenges that climate change may pose to the activity of deposit insurers and their ability to deliver on key objectives. The paper also classifies the challenges as to their risk-nature as well as to their directness, urgency and the feasibility of deposit insurers’ to respond to them. Given the novel nature of these issues as well as the high uncertainty and long time horizon inherent to them, the discussion here is by no means meant to be exhaustive. It is also recognised that the scale and degree to which climate change affects deposit insurers may vary significantly. This may be so due to differences in mandates or geographical exposure to climate risks. Nevertheless, the breath and scope of climate change-related risks as well as financial standard-setters’ omnipresent activities in the field make this topic of strategic interest to the deposit insurance community. The links between these challenges and the IADI Core Principles underscores the strategic urgency of this contemporary policy issue. |
| Keywords: | deposit insurance, bank resolution |
| JEL: | G21 G33 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:awl:polbri:5&r= |
| By: | Rising, James A.; Taylor, Charlotte; Ives, Matthew C.; Ward, Robert E.t. |
| Abstract: | A large discrepancy exists between the dire impacts that most natural scientists project we could face from climate change and the modest estimates of damages calculated by mainstream economists. Economic assessments of climate change risks are intended to be comprehensive, covering the full range of physical impacts and their associated market and non-market costs, considering the greater vulnerability of poor people and the challenges of adaptation. Available estimates still fall significantly short of this goal, but alternative approaches that have been proposed attempt to address these gaps. This review seeks to provide a common basis for natural scientists, social scientists, and modellers to understand the research challenges involved in evaluating the economic risks of climate change. Focusing on the estimation processes embedded in economic integrated assessment models and the concerns raised in the literature, we summarise the frontiers of research relevant to improving quantitative damage estimates, representing the full complexity of the associated systems, and evaluating the impact of the various economic assumptions used to manage this complexity. |
| Keywords: | ES/R009708/1; rantham Research Institute on Climate Change and the Environment; at the London School of Economics; and the ESRC Centre for Climate Change Economics and Policy (CCCEP; UKRI block grant |
| JEL: | R14 J01 N0 |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114941&r= |
| By: | Eskander, Shaikh; Fankhauser, Sam; Setzer, Joana |
| Abstract: | There is no country in the world that does not have at least one law or policy dealing with climate change. The most prolific countries have well over 20, and globally there are 1,800 such laws. Some of them are executive orders or policies issued by governments, others are legislative acts passed by parliament. The judiciary has been involved in 1,500 court cases that concern climate change (more than 1,100 of which were in the United States). We use Climate Change Laws of the World, a publicly accessible database, to analyze patterns and trends in climate change legislation and litigation over the past 30 years. The data reveal that global legislative activity peaked around 2009–14, well before the Paris Agreement. Accounting for effectiveness in implementation and the length of time laws have been in place, the United Kingdom and South Korea are the most comprehensive legislators among G20 countries and Spain within the Organization for Economic Cooperation and Development. Climate change legislation is less of a partisan issue than is commonly assumed: the number of climate laws passed by governments of the left, center, and right is roughly proportional to their time in office. We also find that legislative activity decreases in times of economic difficulty. Where courts have gotten involved, judges outside the United States have ruled in favor of enhanced climate protection in about half of the cases (US judges are more inclined to rule against climate protection). |
| Keywords: | climate change; laws; litigation; Grantham Foundation for the Protection of the Environment; and from the UK Economic and Social Research Council (ESRC) through its support of the Centre for Climate Change Economics and Policy (CCCEP). |
| JEL: | K32 Q54 Q58 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:114567&r= |
| By: | Jeremy van Dijk; Mehdi Farsi |
| Abstract: | We provide novel evidence for the size of key electric vehicle (EV) adoption barriers, purchase price and battery range, and the driver, operating cost, in the broadening EV market. We further demonstrate the heterogeneity of these across consumer segments, plus determine groups most resistant to EV adoption and the relationship with transport habits and car ownership. To this end we analyse the results of a choice experiment of 882 respondents across Switzerland, a market that has favourable adoption criteria, however realises a low EV market share. We find low and inelastic elasticities of price, range and driving cost, and high variation across levels of urbanisation, income and car ownership. We additionally see high technological preference inertia among car owners, and a larger probability of non-owners and public transport users to choose EVs. We finally propose targeting EV adoption policies to relatively sensitive consumer groups to maximise efficiency, and support alternative policies to overcome low overall elasticities and achieve greater effectiveness. |
| Keywords: | Transport; Electric vehicles; Adoption barriers; Choice experiment; Stated preferences; Environmental policy; Behaviour |
| JEL: | D90 O33 Q40 Q48 Q50 Q58 R40 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:22-04&r= |
| By: | Pia Andres; Ralf Martin; Penny Mealy; Esin Serin; Arjun Shah; Anna Valero |
| Abstract: | Seizing opportunities from the CCUS value chain can be part of an economy-wide, net-zero-aligned growth path in the UK. The UK has responded to the climate emergency facing the world with an economy-wide target to reach net-zero emissions by 2050. The current decade is critical to ensure coordinated investments in infrastructure, innovation and skills reorient the UK economy towards a net-zero-aligned growth path. As a technological solution for addressing some of the most challenging emissions, CCUS needs to be deployed urgently in the UK and globally, which implies a rapid growth trajectory for the demand for CCUS-related technologies, products and services. The Government's current stated ambition is to capture 10 million tonnes of carbon dioxide (MtCO2) a year by 2030. To meet net-zero, this needs to be ramped up significantly. There are projects already in early development stages across the UK that together could deliver double that capacity in the 2020s. An inconsistent policy environment, including two failed major demonstration competitions, has been the primary setback against CCUS development in the UK to date. Now is the time to make up for years of stalled progress in deploying this essential technology. What's more, fast, strategic action can unlock growth opportunities along the way. Focus should be on areas where the UK has or can build comparative advantage, crucially by capitalising on its existing capabilities in the oil and gas sector, to deliver significant emissions abatement while generating export opportunities and wider economic benefits from CCUS. |
| Keywords: | Technological change, Productivity, carbon capture, environment, clean growth |
| Date: | 2021–09–22 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepsps:38&r= |
| By: | Velvart, Joëlle (University of Basel); Dato, Prudence (University of Basel); Kuhlmey, Florian (University of Basel) |
| Abstract: | Major life decisions such as the choice of housing and its characteristics have significant implications for a household and its energy consumption because they alter structural aspects of energy demand. Energy policy interventions targeting these decisions can therefore have a long-lasting impact. To assess non-monetary policy instruments as incentives for energy-conserving housing choices we implement a discrete choice experiment with a representative sample of Swiss households. The purpose of this paper is the investigation of behavioural differences across households in reaction to social norms and energy-related information. To this end, we distinguish different types of households with a segmentation approach useful for policy makers. Our study provides insights for the question whether the tailoring of non-monetary measures can contribute to a more effective policy design compared to a one-size-fits-all approach. Estimating panel mixed logit models, we find treatment effects to significantly differ across household segments as well as with the baseline energy consumption. The evident treatment heterogeneity suggests a targeted approach for non-monetary interventions. |
| Keywords: | Housing choice, household heterogeneity, non-monetary incentives, social norms, energy literacy |
| JEL: | D1 D83 D9 Q4 Q5 R21 |
| Date: | 2022–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2022/03&r= |
| By: | Chapman, Gary; Hottenrott, Hanna |
| Abstract: | Green start-ups play a vital role in the needed transition towards more environmentally sustainable economies. Yet our understanding of why some founders start green ventures and others do not remains incomplete. We build on the cognitive and decision-making perspectives on start-ups proenvironmental engagement to shed light on the role of founders' personality traits - focusing on the 'Big 5' and risk tolerance - in explaining whether founders' start new ventures with environmentally friendly products. Our analysis of a large, representative, manufacturing and service sector sample of German start-ups illustrates the important role of founder personality traits. Specifically, openness and extraversion promote environmentally friendly products while neuroticism inhibits it. We discuss the implications of these insights. |
| Keywords: | emission reduction,environmentally friendly products,green innovation,Big Fivepersonality traits,sustainability |
| JEL: | G24 L26 O25 O31 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22009&r= |
| By: | Elverdin, Pablo; Glauber, Joseph W.; Laborde Debucquet, David; Piñeiro, Valeria |
| Abstract: | Achieving world food security is more complex nowadays. It is not only necessary to pay attention to the availability of food, but also to the way in which it is produced, paying special attention to the impact of the food production systems on climate change and natural resources sustainability. The challenge is to produce a diversified basket of nutritious food in sufficient quantity while reducing greenhouse gas emissions and minimizing the impact on natural resources. Accomplishing these diverse goals requires an integrated strategy that takes into account increased productivity and the environmental sustainability of food production systems with a focus on efficient use of land, water, fertilizers and energy. |
| Keywords: | WORLD; trade; environment; sustainability; food production; natural resources; greenhouse gas emissions; agriculture; environmental sustainability |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:prnote:135830&r= |
| By: | Gheorghe ZAMAN (Institute of National Economy – Romanian Academy); Giani Ionel GRÄ‚DINARU (Department of Statistics and Econometrics, The Bucharest University of Economic Studies, Institute of National Economy – Romanian Academy); Alin MARICUÈš (The Bucharest University of Economic Studies); Ana-Maria BĂTRÎNCEA (The Bucharest University of Economic Studies) |
| Abstract: | This paper determines the rebound effect from a comparative perspective on the Romanian economy: before and after accession to the European Union. The empirically determined rebound effect is a defined analysis of the link between production factors in order to present the non-singularity of energy in determining the economy. Therefore, factors such as capital, labor force and technological progress are included in the analysis. The rebound effect on the Romanian economy shows that it had high values when there was a lower increase in energy consumption compared to GDP growth, indicating the impact of economic sustainability in energy use. Since 2015, Romania has recorded a constant level of rebound effect involving an irrational action of energy use. |
| Keywords: | rebound effect, energy consumption, Data Envelopment Analysis |
| JEL: | Q43 P28 C80 C67 |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:ine:wpaper:8:y:2021&r= |
| By: | Stephen K. Dimnwobi (Nnamdi Azikiwe University Awka, Nigeria); Chekwube V. Madichie (Pan-Atlantic University, Lagos, Nigeria); Chukwunonso Ekesiobi (Chukwuemeka Odumegwu Ojukwu University, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Financial sector performance is increasingly linked with the transition to renewable energy in the sustainability discourse of developing economies. This paper examines the nexus and implication(s) of financial development on renewable energy consumption in Nigeria (the largest and most populous economy in Africa). Specifically, this study utilised the broad based financial development index data to effectively address the multidimensional nature of financial development and the portion of renewable energy in total energy consumption as key variables, while other relevant pieces of information (growth rate of per capita GDP, foreign direct investment and consumer price index) were incorporated. The study employed a blend of the ADF test and Zivot-Andrew test to ascertain stationarity properties as well as the likelihood of structural breaks, while the ARDL was utilized to determine the long-run relationship(s) using data from 1981 to 2019. The study estimation finds, among other things, that financial development is critical for renewable energy consumption in Nigeria and recommends policies to promote better outcomes for the financial and energy sectors, respectively. |
| Keywords: | Financial development; Renewable energy consumption; Nigeria |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:22/024&r= |
| By: | Saudamini Das; Arup Mitra (Institute of Economic Growth, Delhi) |
| Abstract: | Poor households engage in multiple activities to maintain their consumption in face of economic hardships or exogenous shocks. In this paper, we try to examine the effectiveness of such livelihood diversification to increase or maintain the inter-temporal consumption level conditional to the climate change knowledge of the households. We use a cross sectional survey data of 1200 households from central and western parts of Odisha and estimate multiple regression models with and without the assumption of endogeneity of occupational diversification index. Results clearly establish that households perceiving climate change significantly are able to benefit from diversification and maintain or improve their consumption intake over time, whereas those with no significant climate knowledge, are not able to benefit from diversification. In India, offering avenues for diversification has been a prime government policy with a view to augmenting farmers’ income; however, such policies will have limited effects unless farmers are given the correct climate education to be able to choose the right activities which can increase their income and stabilise consumption. |
| Keywords: | Climate change, livelihood diversification, consumption mobility, Odisha,farmer’s income |
| JEL: | J24 Q12 Q54 |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:awe:wpaper:425&r= |
| By: | Blazsek, Szabolcs; Escribano, Álvaro |
| Abstract: | Climate variables are known to be subject to abrupt changes when some threshold levels are surpassed. We use data for the last 798,000 years on global ice volume (Ice), atmospheric carbon dioxide level (CO2), and Antarctic land surface temperature (Temp) to model and measure those longrun nonlinear climate effects. The climate variables have very long and asymmetric cycles, created by periods of upward trends, followed by periods of downward trends driven by exogenous orbital variables. The exogenous orbital variables considered by the Milankovitch cycles are eccentricity of Earth's orbit, obliquity, and precession of the equinox. We show that our new score-driven threshold ice-age models improve the statistical inference and forecasting performance of competing ice-age models from the literature. The drawback of using our 1,000-year frequency observations, is that we cannot measure the nonlinear climate effects of humanity created during the last 250 years, which are known to have generated abrupt structural changes in the Earth's climate, due to unprecedented high levels of CO2 and Temp, and low levels of Ice volume. On the other hand, the advantage of using low-frequency data is that they allow us to obtain long-run forecasts on what would have occurred if humanity had not burned fossil fuels since the start of the Industrial Revolution. These long-run forecasts can serve as benchmarks for the long-run evaluation of the impact of humanity on climate variables. Without the impact of humanity on climate, we predict the existence of turning points in the evolution of the three climate variables for the next 5,000 years: an upward trend in global ice volume, and downward trends in atmospheric CO2 level and Antarctic land surface temperature. |
| Keywords: | Climate Change; Ice-Ages; Global Ice Volume; Atmospheric Co2 Level; Antarctic Land Surface Temperature; Dynamic Conditional Score Models; Generalized Autoregressive Score Models |
| JEL: | C32 C38 C51 C52 C53 Q54 |
| Date: | 2022–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:34757&r= |
| By: | International Monetary Fund |
| Abstract: | Activity returned to its pre-COVID level in 2021. Inflation remains well above the NBK’s 4–6 percent target band, and spillovers from sanctions on Russia will exacerbate price pressures and weaken economic growth in 2022. Kazakhstan benefits from strong fiscal and external buffers but risks to the outlook are elevated due to the uncertain impact on Kazakhstan of the sanctions on Russia and heightened domestic tensions since the January social unrest episode. In the medium term, non-oil growth under the baseline is expected to converge to about 4 percent. Sustainable growth will require greater economic diversification. Climate-related challenges are acute for Kazakhstan given its outsized hydrocarbon sector, high per-capita greenhouse gas emissions, and low domestic energy prices. |
| Date: | 2022–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2022/113&r= |
| By: | Almatrudi, Sulaiman; Parvate, Kanaad; Rothchild, Daniel; Vijay, Upadhi |
| Abstract: | Passenger and heavy-duty vehicles make up 36% of California’s greenhouse gas (GHG) emissions. Reducing emissions from vehicular travel is therefore paramount for any path towards carbon neutrality. Efforts to reduce GHGs by encouraging mode shift or increasing vehicle efficiency are, and will continue to be, a critical part of decarbonizing the transportation sector. Emerging technologies are creating an opportunity to reduce GHGs. Human driving behaviors in congested traffic have been shown to create stop-and-go waves. When waves form, cars periodically slow down (sometimes to a stop) and then speed back up again; this repeated braking and accelerating leads to higher fuel consumption, and correspondingly increasingly GHG emissions. Flow smoothing, or the use of a specially designed adaptive cruise controllers to dissipate these waves, can reduce fuel consumption of all the cars on the road. By keeping all vehicles at a constant speed, flow smoothing can minimize system-wide GHG emissions. This report presents the results of flow-smoothing when used in simulation, discusses current work on implementing flow-smoothing in real world-highways, and presents policy discussions on how to support flow smoothing. |
| Keywords: | Engineering, Greenhouse gases, traffic flow, traffic congestion, autonomous intelligent cruise control, intelligent vehicles, fuel consumption, traffic simulation |
| Date: | 2022–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt52p684dp&r= |