nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒05‒30
28 papers chosen by
Roger Fouquet
London School of Economics

  1. A potential sudden stop of energy imports from Russia: Effects on energy security and economic output in Germany and the EU By Berger, Eva M.; Bialek, Sylwia; Garnadt, Niklas; Grimm, Veronika; Other, Lars; Salzmann, Leonard; Schnitzer, Monika; Truger, Achim; Wieland, Volker
  2. Conflit Russie - Ukraine : quelles conséquences sur les économies africaines ? By Julien Gourdon; Audrey-Anne de Ubeda
  3. The Future of Electric Vehicles in Asia By Alicia Garcia-Herrero
  4. Policies for Electrification of the Car Fleet in the Short and Long Run - Subsidizing Electric Vehicles or Subsidizing Charging Stations? By Cathrine Hagem; Snorre Kverndokk; Eric Nævdal; Knut Einar Rosendahl
  5. Preferences for dynamic electricity tariffs: A comparison of households in Germany and Japan By Miwa Nakai; Victor von Loessl; Heike Wetzel
  6. Green Growth By Anna Valero
  7. Concepts of justice in the degrowth debate By Hennen, Sonja
  8. Climate change and credit risk: the effect of carbon taxes on Italian banks’ business loan default rates By Maria Alessia Aiello; Cristina Angelico
  9. Invasione dell’Ucraina: la risposta della commissione europea alla crisi energetica By Marco Boccaccio
  10. Modeling stock-oil co-dependence with Dynamic Stochastic MIDAS Copula models By Nguyen, Hoang; Virbickaite, Audrone
  11. Extending the Limits of the Abatement Cost By Guy Meunier; Jean-Pierre Ponssard
  12. Quantifying knowledge spillovers from advances in negative emissions technologies By Giorgio Tripodi; Francesco Lamperti; Roberto Mavilia; Andrea Mina; Francesca Chiaromonte; Fabrizio Lillo
  13. La nouvelle stratégie énergétique de la Chine en Afrique : Enjeux et défis By Julien Gourdon; Matthys Lambert; Achille Macé
  14. Understanding Climate Damages: Consumption versus Investment By Gregory P. Casey; Stephie Fried; Matthew Gibson
  15. May The Forcing Be With You: Experimental Evidence on Mandatory Contributions to Public Goods By P. Battiston; L. Chollete; S. Harrison
  16. International trade and environmental corporate social responsibility By Bárcena-Ruiz, Juan Carlos; Sagasta, Amagoia
  17. “And Breathe Normally†: The Low Emission Zone impacts on health and well-being in England. By Beshir, H.A.;; Fichera, E.;
  18. Etat des lieux et régulation de l'autoconsommation collective en France By Gilles Debizet
  19. BELT AND ROAD INITIATIVE: Developments, Economic and Strategic Implications By Ashwani Bishnoi; Pravakar Sahoo
  20. What works best in promoting climate citizenship? A randomised, systematic evaluation of nudge, think, boost and nudge+ By Banerjee, Sanchayan; Galizzi, Matteo M.; John, Peter; Mourato, Susana
  21. De la ressource commune au péril commun : Repenser nos modèles de l'action climatique By Charlotte Demonsant; Armand Hatchuel; Kevin Levillain; Blanche Segrestin
  22. Micromobility Trip Characteristics, Transit Connections, and COVID-19 Effects By Fukushige, Tatsuya MS; Fitch, Dillon T. PhD; Mohiuddin, Hossain MS; Andersen, Hayden BS; Jenn, Alan PhD
  23. Determinants of Remittance Outflows: The Case of Saudi Arabia By Muhammad Javid; Fakhri Hasanov
  24. Il consumo di energia da fonti rinnovabili in Europa dal 2004 al 2019: uno studio basato sulla cluster analysis By Bedetti, Alessandro
  25. How to Finance Climate Change Policies? Evidence from Consumers' Beliefs By Francesco D'Acunto; Sascha Möhrle; Florian Neumeier; Andreas Peichl; Michael Weber; Sascha Möhrle; Michael Weber
  26. Climate Change and Individual Behavior By Bernard, René; Tzamourani, Panagiota; Weber, Michael
  27. A Neural Network Approach to the Environmental Kuznets Curve By Mikkel Bennedsen; Eric Hillebrand; Sebastian Jensen
  28. Will the green transition be inflationary? Expectations matter By Alessandro Ferrari; Valerio Nispi Landi

  1. By: Berger, Eva M.; Bialek, Sylwia; Garnadt, Niklas; Grimm, Veronika; Other, Lars; Salzmann, Leonard; Schnitzer, Monika; Truger, Achim; Wieland, Volker
    Abstract: [Introduction] The Russian war of aggression against Ukraine since 24 February 2022 has intensified the discussion of Europe's reliance on energy imports from Russia. A ban on Russian imports of oil, natural gas and coal has already been imposed by the United States, while the United Kingdom plans to cease imports of oil and coal from Russia by the end of 2022. The European Commission has announced on 5 April 2022 to ban coal imports from Russia (Europäische Kommission, 2022a). It has been wrestling with the idea of an oil and gas embargo against Russia. At the same time, Russia may decide to stop its energy exports to countries that are imposing sanctions. The German Federal Government is currently opposing an energy embargo against Russia (BMWK, 2022a). However, the Federal Ministry for Economic Affairs and Climate Action (BMWK) is working on a strategy to reduce energy imports from Russia (BMWK, 2022b, 2022c). The urgency to reduce dependency on Russian gas seemed to have increased particularly after the Russian president announced Russia would accept only the Russian currency Ruble for energy exports - even though the issue seems to have been solved by energy importers opening accounts at the Gazprom bank. On 30 March 2022 the BMWK has declared early warning, i.e., the first of three crises levels according to the emergency plan for gas (BMWK, 2022d), which is based on the EU regulation 2017/1938 concerning measures to safeguard the security of gas supply (BMWK, 2022d). The crisis level of early warning primarily serves at improving information flows and cooperation between the relevant authorities; currently, no market intervention is undertaken. In this paper we first give an overview of the German and European reliance on energy imports from Russia with a focus on gas imports (Section II) and we discuss price effects (Section II.1), alternative suppliers of natural gas (Section II.2), and the potential for saving and replacing natural gas (Section II.3). In Section III, we provide an overview of estimates of the consequences on the economic outlook if the conflict intensifies. Section IV concludes.
    Date: 2022
  2. By: Julien Gourdon (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, AFD - Agence française de développement); Audrey-Anne de Ubeda (FERDI - Fondation pour les Etudes et Recherches sur le Développement International)
    Abstract: Plus d'un mois après le début de la guerre en Ukraine et alors que le conflit s'enlise, la situation pourrait devenir intenable pour les pays d'Afrique. Les questions de l'approvisionnement et de la dépendance de certaines économies africaines aux marchés russe et ukrainien constituent le premier point de tension, aux conséquences immédiates. Parallèlement, l'envol des prix des biens alimentaires et de l'énergie constituent une sérieuse menace pour la sécurité alimentaire. Enfin, compte tenu de leur environnement macroéconomique dégradé, de nombreuses économies africaines n'ont que peu de marge de manœuvre pour soutenir leur population et font face à une forte tension budgétaire.
    Keywords: Afrique,Chaînes d'approvisionnement,Conflit Russie-Ukraine
    Date: 2022–04–14
  3. By: Alicia Garcia-Herrero (Chief Economist for Asia Pacific at Natixis; Institute for Emerging Market Studies, Hong Kong University of Science and Technology)
    Abstract: Why so much attention is being paid to electric vehicles (EVs) in the green transition? The main reason is that the technology already exists to help governments reduce emissions as at reasonable costs. By pushing the shift towards EVs, governments can buy time to develop the technology to reduce emissions in other sectors at a reasonable cost. A second reason is that the EV sector offers a great industrial opportunity, not only for those who have traditionally produced cars but also for newcomers. Who is leading the race? The EU and China are so far leading but in different ways. The EU was the first to encourage the demand for sustainable cars, and to a lesser extent to produce them. China encourages productions with subsidies and is expected to benefit from the huge potential demands Alicia Garcia Herrero Adjunct Professor for Science and Technology at HKUST Senior Research Fellow at BRUEGEL The Future of Electric Vehicles in Asia from Asia. China also leads in battery components and controls the supply of related raw materials. The more batteries become a bottleneck to production, the more China can lead the race. Can the EV industry become another geopolitical battlefield? Components for EV batteries could easily become another geopolitical standoff and, possibly, a new bottleneck in the global supply chain. Countries that have benefited from Europe's leadership position in the automotive sector need to get their act together by starting production and ensuring the supply of their components. As for Asia ex-China, it is time to think of stepping up production of EVs and batteries to avoid excessive reliance on Chinese exports.
    Date: 2022–05
  4. By: Cathrine Hagem; Snorre Kverndokk; Eric Nævdal; Knut Einar Rosendahl
    Abstract: Abatement can be performed by measures that have an impact on present emissions, but no lasting effect, and by long-lived infrastructure investments. We study the optimal combination of short and long-lived options for reducing greenhouse gas (GHG) emissions, by specifying abatement cost functions depending on abatement from these two options. Electrification of the transport sector is used as an example. A transition from internal combustion engines vehicles (ICEVs) to electric vehicles (EVs) can be incentivized by both subsidies on purchases of EVs and increased density of fast chargers. Subsidizing the purchase of EVs only leads to emissions reductions in the next few years (static option), whereas investment in infrastructure also will reduce abatement costs in several years to come (dynamic option). We find that the present marginal abatement cost of the dynamic alternative exceeds the costs of static abatement in optimum, thus the dynamic option may be profitable even if it is more expensive. A higher expected abatement cost in later periods most likely makes it even more profitable to use the dynamic policy instrument. This framework is used for a numerical study on electrification of the transport sector in Norway. The numerical simulations confirm the results of the theory model. Flexibility in the domestic target over time and the presence of an international permit market affect the combination of static and dynamic abatement. This stresses the importance of early and time consistent plans for international regulations of GHG emissions.
    Keywords: emissions permit market, infrastructure investments, electric vehicles
    JEL: C63 H21 Q54 R42
    Date: 2022
  5. By: Miwa Nakai (Fukui Prefectural University); Victor von Loessl (University of Kassel); Heike Wetzel (University of Kassel)
    Abstract: We evaluate a stated choice experiment on dynamic electricity tariffs based on two representative household surveys from Germany and Japan. Our results indicate significant differences between German and Japanese respondents’ preferences towards dynamic tariffs, with the latter generally being more open to dynamic pricing. Furthermore, our unique experimental design allows to disentangle preferences for inter- and intraday price changes, which are two essential tariff characteristics. In this respect, our results suggest that households need significant compensation in order to accept frequently changing price patters. In contrast, they are mostly indifferent with respect to the number of price changes per day. Besides the implementation of an environmental treatment message, we additionally investigate tariff characteristics, which aim at overcoming household acceptance barriers. To this end, a restrictive use of households’ consumption data, price caps, as well as highlighting the environmental benefits associated to dynamic tariffs present themselves as suitable tools to reduce households’ aversions against dynamic electricity tariffs.
    Keywords: Dynamic electricity tariffs, Stated choice experiment, Household acceptance barriers, Tariff design
    JEL: C35 D12 Q41
    Date: 2022
  6. By: Anna Valero
    Abstract: Many countries have plans for a "green recovery" from the pandemic, in which the invention and diffusion of "clean" technologies and practices are central. How can environmental and broader industrial policies be combined to achieve growth that is strong, sustainable and inclusive? Economists study what drives innovation and growth - and how these can be steered towards delivering a zero-carbon future.
    Keywords: environment, industrial policies, , Productivity, growth
    Date: 2021–09–10
  7. By: Hennen, Sonja
    Abstract: Degrowth's search for a qualitatively and quantitively different economy is given legitimacy by the severity of the socio-ecological crisis, paired with a lack of evidence that resource use and environmental impact can be decoupled in absolute terms at a meaningful point in time and studies refuting the trickle-down hypothesis. However, there are few accounts of the potentially adverse effects of a halt of perpetual economic growth on the livelihoods of already marginalized and vulnerable communities and the general justice of a degrowth transition. This paper analyses to what extent Environmental Justice theory (EJ) could compensate for this deficit and thus contribute to a more comprehensive and inclusive understanding of justice in the degrowth concept. To do so, the paper firstly establishes gaps across central pillars of degrowth reasoning with regards to a just transition. It discusses evidence that degrowth seeks global socio-ecological justice on distributive grounds and with respect to recognition but falls short in conceptualizing the role that structural power systems (both on micro and macro level) as well as institutional governance mechanisms play in advancing a globally just degrowth transition. The second section of the analysis highlights those concepts within critical EJ theory that, based on the gaps identified, could enable a more extensive understanding of the necessary parameters for a just degrowth transition, namely in the areas of recognition, decoloniality, and theory of the state.
    Keywords: degrowth,socio-ecological crisis,environmental justice,theory of the state
    JEL: F54 H10 O44 Q56 Q58
    Date: 2022
  8. By: Maria Alessia Aiello (Bank of Italy); Cristina Angelico (Bank of Italy)
    Abstract: Climate change poses severe systemic risks to the financial sector through multiple transmission channels. In this paper, we estimate the potential impact of different carbon taxes (€50, €100, €200 and €800 per ton of CO2) on the Italian banks’ default rates at the sector level in the short term using a counterfactual analysis. We build on the micro-founded climate stress test approach proposed by Faiella et al. (2021), which estimates the energy demand of Italian firms using granular data and simulates the effects of the alternative taxes on the share of financially vulnerable agents (and their debt). Credit risks stemming from introducing a carbon tax – during periods of low default rates – are modest on banks: on average, in a one-year horizon, the default rates of firms increase but remain below their historical averages. The effect is heterogeneous across different sectors and rises with the tax value; however, even assuming a tax of €800 per ton of CO2, the default rates are lower than the historical peaks.
    Keywords: climate change, carbon tax, climate stress test, banks’ credit risk
    JEL: Q43 Q48 Q58 G21
    Date: 2022–04
  9. By: Marco Boccaccio (Università Sapienza di Roma - Dipartimento di Studi Giuridici, Filosofici ed Economici)
    Abstract: The crisis triggered by the Russian invasion of Ukraine stresses the problem of the dependence of most European countries from Russian gas supply. As a response to this situation, the European Commission on March, 8th 2022 adopted the EU power Communication pointing the lines of a possible reaction at European level to the crisis. The strategy is developed at three different levels. The first is devoted to emergency measures, mostly related to the problem of high prices; the second one is related to the problem of gas supply for the next winter; the third one is a long term goal, that of reducing the dependence from Russian gas at all.
    Keywords: war and economic crisis, energy, price regulation, state aid
    JEL: A F K K32 Q41
    Date: 2022–05
  10. By: Nguyen, Hoang (Örebro University School of Business); Virbickaite, Audrone (CUNEF Universidad)
    Abstract: Stock and oil relationship is usually time-varying and depends on the current economic conditions. In this study, we propose a new Dynamic Stochastic Mixed data frequency sampling (DSM) copula model, that decomposes the stock-oil relationship into a short-run dynamic stochastic component and a long-run component, governed by related macro- nance variables. We nd that in ation/interest rate, uncertainty and liquidity factors are the main drivers of the long-run co-dependence. We show that investment portfolios, based on the proposed DSM copula model, are more accurate and produce better economic outcomes as compared to other alternatives.
    Keywords: Stock-Oil; Copula; MIDAS; SMC; Portfolio allocation; Hedging
    JEL: C32 C52 C58 G11 G12
    Date: 2022–05–19
  11. By: Guy Meunier; Jean-Pierre Ponssard
    Abstract: The paper examines the relevant cost benefit framework for public authorities investigating the potential of local projects to mitigate climate change. Because these projects are typically limited in time and space, continuation pathways need be introduced to capture the benefits provided by a project over the longer term. This issue is particularly acute in the transition toward carbon neutrality, which aims for the full abatement of emissions by a future end date. The relevant question is not whether or not to decarbonize an activity but when to do so, and how. We propose a new metric that incorporates into the analytical framework the dynamic interactions between a project and its continuation. This metric is defined as the annual overall discounted cost divided by the long term annual abatement. The new metric is a non trivial extension of the standard cost of abatement. It determines when precisely to launch a given project and addresses the question of how to compare competing projects using their on going emissions up to their respective optimal launch dates. Two illustrations make clear the novelty of our approach: the choice of the optimal mix of technologies for the electricity sector and the comparison between competing green technologies for mobility.
    Keywords: cost benefit analysis, abatement cost, time value of money, learning-by-doing
    JEL: Q51 Q56 R58
    Date: 2022
  12. By: Giorgio Tripodi; Francesco Lamperti; Roberto Mavilia; Andrea Mina; Francesca Chiaromonte; Fabrizio Lillo
    Abstract: Negative emissions technologies (NETs) feature prominently in most scenarios that halt climate change and deliver on the Paris Agreement's temperature goal. As of today, however, their maturity and desirability are highly debated. Since the social value of new technologies depends on how novel knowledge fuels practical solutions, we take an innovation network perspective to quantify the multidimensional nature of knowledge spillovers generated by twenty years of research in NETs. In particular, we evaluate the likelihood that scientific advances across eight NET domains stimulate (i) further production of knowledge, (ii) technological innovation, and (iii) policy discussion. Taking as counterfactual scientific advances not related to NETs, we show that NETs-related research generates overall significant, positive knowledge spillovers within science and from science to technology and policy. At the same time, stark differences exist across carbon removal solutions. For example, the ability to turn scientific advances in NETs into technological developments is a nearly exclusively feature of Direct Air Capture (DAC), while Bio-energy with Carbon Capture and Storage (BECCS) lags behind. Conversely, BECCS and Blue Carbon (BC) have gained relative momentum in the policy and public debate, vis-Ã -vis limited spillovers from advances in DAC to policy. Moreover, both scientific advances and collaborations cluster geographically by type of NET, which might affect large-scale diffusion. Finally, our results suggest the existence of coordination gaps between NET-related science, technology, and policy.
    Keywords: Climate change mitigation; Negative emissions technologies; Carbon dioxide removal; Innovation; Knowledge spillovers; Data mining; Networks.
    Date: 2022–05–27
  13. By: Julien Gourdon (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, AFD - Agence française de développement); Matthys Lambert (Sciences Po - Sciences Po); Achille Macé (Sciences Po - Sciences Po)
    Abstract: Le 8ème Forum sur la coopération sino-africaine (FOCAC) de Dakar en octobre 2021 a consolidé les piliers d'une « nouvelle ère » de la coopération Chine-Afrique dans divers domaines dont celui de l'Energie. Ainsi la Déclaration sur la coopération Sino-Africaine de lutte contre le changement climatique évoque une intensification du soutien de la Chine au développement des énergies renouvelables et réaffirme l'arrêt de la construction de nouveaux projets charbon sur le continent. Il est intéressant d'examiner d'une part la situation actuelle des réalisations chinoises caractérisée par une présence concentrée sur les énergies fossiles et hydrauliques, d'autre part les contours de la mutation vers des projets moins risqués et moins polluants et enfin les enjeux de ce changement pour les banques et investisseurs chinois.
    Keywords: Chine,Financement du développement,Changement climatique
    Date: 2022–03–31
  14. By: Gregory P. Casey; Stephie Fried; Matthew Gibson
    Abstract: Existing climate-economy models use aggregate damage functions to model the effects of climate change. This approach assumes climate change has equal impacts on the productivity of firms that produce consumption and investment goods or services. We show the split between damage to consumption and investment productivity matters for the dynamic consequences of climate change. Drawing on the structural transformation literature, we develop a framework that incorporates heterogeneous climate damages. When investment is more vulnerable to climate, we find short-run consumption losses will be smaller than leading models with aggregate damage functions suggest, but long-run consumption losses will be larger. We quantify these effects for the climate damage from heat stress and find that accounting for heterogeneous damages increases the welfare cost of climate change by approximately 4 to 24 percent, depending on the discount factor.
    Keywords: climate change, structural transformation, growth
    JEL: O13 O44 Q56
    Date: 2021
  15. By: P. Battiston; L. Chollete; S. Harrison
    Abstract: Evidence in the applied literature indicates that policies intended to stimulate positive externalities via coercion can backfire. For example, Davis (2008) finds that when in 1989, the government of Mexico City tried to control air pollution by banning most drivers from driving their vehicle one weekday per week, many drivers bought another, used, high emissions car, which ended up worsening pollution. In order to test for such effects, we run a repeated public goods experiment where subjects are randomly forced to contribute. All group members are informed about forcing after it happens. We find that when random forcing is present, intended contributions are significantly larger in absolute terms. Moreover, contributions decrease significantly after being forced to contribute, and tend to increase after another group member is forced to contribute. Hence, our results indicate that forcing mechanisms have indirect effects that must be taken into account when assessing the overall impact of policies aimed at stimulating positive externalities.
    Keywords: unintended consequences, public good game, laboratory experiment, reciprocity
    JEL: C92 D04 H41
    Date: 2022
  16. By: Bárcena-Ruiz, Juan Carlos; Sagasta, Amagoia
    Abstract: This paper analyzes firms’ incentives to engage in environmental corporate social responsibility (ECSR) in an international market under imperfect competition. We find that in the absence of environmental taxes firms do not adopt ECSR. However, the implementation of environmental taxes by governments encourages firms to adopt ECSR under local damage. Consumers, producers, and environmentalists are better off if firms decide to be environmentally responsible than if they decide not to. We also find that the decision to adopt ECSR depends on transboundary pollution. Under global damage firms engage in ECSR only if they are highly concerned about the environment. This means that the existence of transboundary pollution negatively affects the incentives of firms to be environmentally friendly. Finally, we find that when governments cooperatively determine their environmental taxes, firms engage in ECSR under both local and global damage. Thus, under global damage firms have greater incentives to be environmentally friendly when governments cooperate on environmental policies than when they do not.
    Keywords: Environmental corporate social responsibility; environmental tax; international trade; transboundary pollution.
    JEL: D43 L13 L22 Q56
    Date: 2021–10–08
  17. By: Beshir, H.A.;; Fichera, E.;
    Abstract: Air pollution is a global concern for its negative externalities on the climate, but also on the healthcare sector and human capital accumulation. Yet, there is scant evidence on the effectiveness of clean air transport policies. In this study we investigate the effects of London’s Low Emission Zone (LEZ) and Ultra-Low Emission Zone (ULEZ) on health and well-being. We exploit the temporal and spatial variation of these policies, implemented in Greater London (LEZ) and Central London (ULEZ) in 2008 and 2019, respectively. Using a difference-in-differences approach and linked survey and administrative data, we find LEZ has significantly reduced PM10 by 12% of the baseline mean and ULEZ has reduced both NO2 by 12.4% and PM10 by 27%. We also show improvements in health with LEZ reducing limiting health problems by 7%, COPD by 14.5% and sick leave by 17%; and ULEZ reducing number of health conditions by 22.5%, anxiety by 6.5%, and sick leave by 18%. A back of the envelope cost-benefit analysis indicates savings for £963.7M for the overall population.
    Keywords: air pollution; well-being; low emission zones;
    JEL: I25 J1 O12
    Date: 2022–05
  18. By: Gilles Debizet (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes)
    Abstract: Après la libéralisation du secteur de l'énergie, le législateur et le gouvernement ont fixé des objectifs de déploiement des énergies renouvelables,. Encore faible en volume, l'autoconsommation individuelle et collective connait un essor important. Son cadrage régulatoire évolue. Instaurée à la suite de la libéralisation de la production et de la fourniture de gaz et d'électricité, la CRE veille au bon fonctionnement des marchés du gaz et de l'électricité en France au bénéfice des consommateurs et en cohérence avec les objectifs de la politique énergétique nationale.
    Date: 2021–12–16
  19. By: Ashwani Bishnoi; Pravakar Sahoo (Institute of Economic Growth, Delhi)
    Abstract: China’s flagship project Belt and Road Initiative (BRI) launched in 2013 is meant to reshape global networks of transport infrastructure further integrating China with Asia, Europe and Africa having significant implications on trade, investment and economic and political ties of China vis-à-vis with other countries. The paper also highlights the economic as well as strategic implications of BRI on India. Overall, there has been significant increase in Chinese outward investment during the post-BRI period and most of the outward investment has been directed towards countries which are participating in BRI. Though the objectives of the projects undertaken in different countries varies, the overall objective is to develop transportation, logistics and communications which would reduce trade and transaction cost for China’s trade, give more market access to Chinese markets and ensure stable supply of energy and other resources. There is strong possibility of trade diversion due to BRI affecting competing countries like India.
    Date: 2020–12
  20. By: Banerjee, Sanchayan; Galizzi, Matteo M.; John, Peter; Mourato, Susana
    Abstract: Nudges have been increasingly deployed to deliver climate policies in the last decade. Recent evidence shows nudges are hard to scale–up. So can we use nudges more effectively, or should we rely on other tools of behaviour change? We argue that reflective strategies can enhance nudges by encouraging agency and ownership in citizens. We test this by systematically comparing nudges to reflective interventions like thinks, boosts, and nudge+ over orders of low-carbon meals using an online experiment with 3,074 participants in the United Kingdom. We find all behavioural interventions increase intentions for climate-friendly diets, but encouraging reflection prior to nudging (“nudge+”) strengthens these treatment effects. There is no evidence of negative behavioural spillovers as measured by participants’ donations to pro-social charities. There is potential for reflective policies in promoting climate citizenship.
    Keywords: nudge; think; boost; nudge+; climate-friendly diets; climate citizenship; Department of Psychological and Behavioural Science; Department of Political Economy; Department of Geography and Environment
    JEL: C90 D91 I12 Q18 Q58
    Date: 2022–04
  21. By: Charlotte Demonsant (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres); Armand Hatchuel (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres); Kevin Levillain (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres); Blanche Segrestin (MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres)
    Date: 2021–12–24
  22. By: Fukushige, Tatsuya MS; Fitch, Dillon T. PhD; Mohiuddin, Hossain MS; Andersen, Hayden BS; Jenn, Alan PhD
    Abstract: While micromobility services (e.g., bikeshare, e-bike share, e-scooter share) hold great potential for providing clean travel, estimating the effects of those services on vehicle miles traveled and reducing greenhouse gases is challenging. To address some of the challenges, this study examined survey, micromobility, and transit data collected from 2017 to 2021 in approximately 20 U.S. cities. Micromobility fleet utilization ranged widely from 0.7 to 12 trips per vehicle per day, and the average trip distance was 0.8 to 3.6 miles. The median (range) rates at which micromobility trips substituted for other modes were 41% (16–71%) for car trips, 36% (5–48%) for walking, and 8% (2–35%) for transit, 5% (2–42%) for no trip. In most cities, the mean actual trip distance was approximately 1.5 to 2 times longer than the mean distance of a line connecting origin to destination. There was a weak and unclear connection between micromobility use and transit use that requires further study to more clearly delineate, but micromobility use had a stronger positive relationship to nearby rail use than to nearby bus use in cities with rail and bus service. The COVID-19 pandemic led to more moderate declines in docked than in dockless bike-share systems. Metrics that would enable better assessment of the impacts of micromobility are vehicle miles traveled and emissions of micromobility fleets and their service vehicles, and miles and percentage of micromobility trips that connect to transit or substitute for car trips.
    Keywords: Engineering, Micromobility, sustainable transportation, public transit, travel behavior, mode choice, performance metrics, COVID-19
    Date: 2022–05–01
  23. By: Muhammad Javid; Fakhri Hasanov (King Abdullah Petroleum Studies and Research Center)
    Abstract: International labor migration has played a key role in the development of both advanced and developing countries. Many developing countries in Asia have relied on labor migration, mainly to the oil-rich Gulf region, to reduce both unemployment and poverty (Naseem 2007). Mansoor and Quillin (2006) explain that poverty, unemployment and low wages in developing countries are the main drivers of migration from these countries. Higher wages and the potential for improved standards of living and professional development in resource-rich countries are pull factors for migration.
    Keywords: Agent Based modeling, Analytics, Applied Research, Autometrics
    Date: 2022–05–22
  24. By: Bedetti, Alessandro
    Abstract: This article aims to apply the statistical technique of hierarchical cluster analysis on a dataset in historical time series on the gross final consumption of energy from renewable sources in Europe from 2004 to 2019. The application of this method was very important for the creation of homogeneous groups with internal cohesion and external validity and to identify the different speeds with which EU countries have implemented their race towards the quotas established by Directive 2009/28 / EC of consumption of energy from renewable sources to be achieved in 2020.
    Keywords: Keywords: Energy transition, Cluster Analysis, Hierarchical methods, Dynamic Time Warping distance; Historical series
    JEL: C19 Q42 Q47 Q5 Q54
    Date: 2022–04–29
  25. By: Francesco D'Acunto; Sascha Möhrle; Florian Neumeier; Andreas Peichl; Michael Weber; Sascha Möhrle; Michael Weber
    Abstract: Climate change policies have been rising to the top of the global political agenda, but how should governments finance them? Public economists propose solutions based on economic theory, but their political feasibility depends on voters’ support, and ordinary households often neglect economic theory and have different views about efficiency and fairness. We design a large-scale information experiment to assess a representative population’s beliefs about alternative forms of financing. We randomly provide information about which groups contribute more to or benefit from climate change and compare the support for alternative financing schemes across informed and uninformed consumers. Informed consumers strongly support the introduction of a VAT-style CO2 tax after learning that the rich contribute more to climate change than the poor, but do not support increasing taxes on older people when learning that they also pollute more. Moreover, consumers who learn that certain populations, due to luck, gain economically from climate change strongly oppose redistribution from gainers to losers of climate change. Consumers also oppose financing policies to fight climate change via public debt, implying higher costs for future generations. Market-based solutions, such as private insurance for those exposed to climate-change risk, are strongly opposed across the board.
    Keywords: climate policy, fiscal policy, taxation, expectations, inequality
    JEL: D64 D84 D91 F38 H23 Q54
    Date: 2022
  26. By: Bernard, René; Tzamourani, Panagiota; Weber, Michael
    Abstract: Climate change poses large economic costs to governments and societies. Reducing individuals’ CO2 footprints is central in mitigating climate change. In a new paper, we show that providing information on combating climate change motivates individuals to take costly actions to offset CO2 emissions. Presenting the information as the result of scientific research is as effective as framing it as the behaviour of other people. Individuals' responses vary depending on their socio-demographic characteristics and attitudes towards climate change. Furthermore, individuals choose information that aligns with their views. Individuals who actively gather information about climate change have a higher willingness to pay for carbon offsets.
    Keywords: Climate change,information treatment,willingness to pay,information acquisition,CO2 compensation
    JEL: D10 D83 D91 Q54
    Date: 2022
  27. By: Mikkel Bennedsen (Aarhus University and CREATES); Eric Hillebrand (Aarhus University and CREATES); Sebastian Jensen (Aarhus University and CREATES)
    Abstract: We investigate the relationship between per capita gross domestic product and per capita carbon dioxide emissions using national-level panel data for the period 1960-2018. We propose a novel semiparametric panel data methodology that combines country and time fixed effects with a nonparametric neural network regression component. Globally and for the regions OECD and Asia, we find evidence of an inverse U-shaped relationship, often referred to as an environmental Kuznets curve (EKC). For OECD, the EKC-shape disappears when using consumption-based emissions data, suggesting the EKC-shape observed for OECD is driven by emissions exports. For Asia, the EKC-shape becomes even more pronounced when using consumption-based emissions data and exhibits an earlier turning point. JEL classifcation: C14, C23, C45, C51, C52, C53 Key words: Territorial carbon dioxide emissions, Consumption-based carbon dioxide emissions, Environmental Kuznets curve, Climate econometrics, Panel data, Machine learning, Neural networks
    Date: 2022–05–24
  28. By: Alessandro Ferrari (Bank of Italy); Valerio Nispi Landi (Bank of Italy)
    Abstract: We analyse a progressive increase in the tax on emissions in a simple two-period New Keynesian model with an AS-AD representation. We find that the increase in the tax today exerts inflationary pressures, but the expected further increase in the tax tomorrow depresses current demand, putting downward pressure on prices: we show that the second effect is larger. However, if households do not anticipate a future fall in income (because they are not rational or the government is not credible), the overall effect of the transition may be inflationary in the first period. We extend the analysis in a medium-scale DSGE model and we find again that the green transition is deflationary. Also in this larger model, by relaxing the rational expectations assumption, we show the transition may initially be inflationary.
    Keywords: expectations, AS AD, aggregate prices, climate policy, pollution tax
    JEL: D84 E31 Q58
    Date: 2022–04

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