nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒07‒18
forty-six papers chosen by
Roger Fouquet
London School of Economics

  1. Saving for a Dry Day: Coal, Dams, and the Energy Transition By Michele Fioretti; Jorge Tamayo
  2. Electricity Supply in Germany Can Be Secured without Russian Supplies and Nuclear Energy; The 2030 Coal-Phase out Remains Possible By Christian Hauenstein; Karlo Hainsch; Philipp Herpich; Christian von Hirschhausen; Franziska Holz; Claudia Kemfert; Mario Kendziorski; Pao-Yu Oei; Catharina Rieve
  3. How to make the EU Energy Platform an effective emergency tool By Walter Boltz; Klaus-Dieter Borchardt; Thierry Deschuyteneer; Jean Pisani-Ferry; Leigh Hancher; François Lévêque; Ben McWilliams; Axel Ockenfels; Simone Tagliapietra; Georg Zachmann
  4. Choosing to Pay More for Electricity: an experiment on the level of residential consumer cooperation By Noemie Martin; Pierre-Olivier Pineau
  5. The Distributional Impacts of a VMT-Gas Tax Swap By Gilbert E. Metcalf
  6. A Game-Theory Analysis of Electric Vehicle Adoption in Beijing under License Plate Control Policy By Lijing Zhu; Jingzhou Wang; Arash Farnoosh; Xunzhang Pan
  7. Optimising the geospatial configuration of a future lithium ion battery recycling industry in the transition to electric vehicles and a circular economy By Nguyen-Tien, Viet; Dai, Qiang; Harper, Gavin D.j.; Anderson, Paul A.; Elliott, Robert J.R.
  8. Effects of renting on household energy expenditure: Evidence from Australia By Rohan Best; Paul J. Burke
  9. Gone with the wind: The effect of air pollution on crime - Evidence from Germany By Karamik, Yasemin; von Graevenitz, Kathrine
  10. Corporate Debt and Stock Returns: Evidence from U.S. Firms During the 2020 Oil Crash By Rabah Arezki; Caleb Cho; Ha Nguyen; Kate Nguyen; Anh Pham
  11. Comparing district heating options under uncertainty using stochastic ordering By Volodina, Victoria; Wheatcroft, Edward; Wynn, Henry
  12. China’s new growth story: linking the 14th Five-Year plan with the 2060 carbon neutrality pledge By Stern, Nicholas; Xie, Chunping
  13. The Political Costs of Oil Price Shocks By Rabah Arezki; Simeon Djankov; Ha Nguyen; Ivan Yotzov
  14. Towards Inclusive Green Growth in Africa: Critical energy efficiency synergies and governance thresholds By Isaac K. Ofori; Emmanuel Gbolonyo; Nathanael Ojong
  15. Self-Enforcing Climate Coalitions for Farsighted Countries: Integrated Analysis of Heterogeneous Countries By Sareh Vosooghi; Maria Arvaniti; Rick van der Ploeg
  16. Is the Global Carbon Market Integrated? Return and Volatility Connectedness in ETS Systems By Lyu, Chenyan; Scholtens, Bert
  17. Economic activity and climate change By Ar\'anzazu de Juan; Pilar Poncela; Vladimir Rodr\'iguez-Caballero; Esther Ruiz
  18. Effect of Air Pollution on Cognitive Performance in India By Damini Singh; Indrani Gupta; Sagnik Dey
  19. The Effects of Energy Supply Shocks and Interest Rate Liberalization in China By Yihao Xue; Qiaoyu Liang; Bing Tong
  20. The impact of changes in dwelling characteristics and housing preferences on house price indices By Peter Reusens; Frank Vastmans; Sven Damen
  21. Effects of information-based regulation on financial outcomes: Evidence from the European Union's public emission registry By Earnhart, Dietrich; Germeshausen, Robert; von Graevenitz, Kathrine
  22. Political implications of ‘green’ infrastructure in one’s ‘backyard’: the Green Party’s Catch 22? By Mitsch, Frieder; McNeil, Andrew
  23. Analisis Canvas Model Bisnis pada Produk Varash By DIRU, STEFANDO RAHULYOAN
  24. A nation-wide experiment: fuel tax cuts and almost free public transport for three months in Germany -- Report 1 Study design, recruiting and participation By Allister Loder; Fabienne Cantner; Lennart Adenaw; Markus Siewert; Sebastian Goerg; Markus Lienkamp; Klaus Bogenberger
  25. Attractiveness of Chinese Bonds Financing Climate and Environmental Projects. By Karel Janda; Binyi Zhang
  26. Allometric scaling in global corporations as a benchmarking approach to assess environmental performance By Rob ter Burg; Yuli Shan; Klaus Hubacek; Franco Ruzzenenti
  27. Analysis of Marginal Abatement Cost Curve for Ammonia Emissions: Addressing Farm-System Heterogeneity By Ogunpaimo, Oyinlola Rafiat; Buckley, Cathal; Hynes, Stephen; O'Neill, Stephen
  28. Innovation for a strong and sustainable recovery By Ralf Martin; Sam Unsworth; Anna Valero; Dennis Verhoeven
  29. I’ll pay you later: Sustaining Relationships under the Threat of Expropriation By Paltseva, Elena; Toews , Gerhard; Troya-Martinez, Marta
  30. Cheap Talk in Corporate Climate Commitments: The effectiveness of climate initiatives By Julia Anna Bingler; Mathias Kraus; Markus Leippold; Nicolas Webersinke
  31. Causal impact of severe events on electricity demand: The case of COVID-19 in Japan By Yasunobu Wakashiro
  32. Le coût d’un embargo sur les énergies russes pour les économies européennes By Langot, François; Tripier, Sébastien
  33. The electric on-demand bus routing problem with partial charging and nonlinear functions By LIAN, Ying; LUCAS, Flavien; SÖRENSEN, Kenneth
  34. Using large ensembles of climate change mitigation scenarios for robust insights By Céline Guivarch; Thomas Le Gallic; Nico Bauer; Panagiotis Fragkos; Daniel Huppmann; Marc Jaxa-Rozen; Ilkka Keppo; Elmar Kriegler; Tamás Krisztin; Giacomo Marangoni; Steve Pye; Keywan Riahi; Roberto Schaeffer; Massimo Tavoni; Evelina Trutnevyte; Detlef van Vuuren; Fabian Wagner
  35. Oiling congress: windfall revenues, institutions, and policy change in the long run By Aldaz Pena, Raul
  36. De l’éco-anxiété à la transition heureuse ? By Perona, Mathieu
  37. Essays on the application of behavioural insights to environmental policy By Rita Abdel Sater
  38. Climate Change: Implications for Macroeconomics By Rajashri Chakrabarti; Marco Del Negro; Julian di Giovanni; Laura Pilossoph
  39. Environmental fiscal federalism and atmospheric pollution: A tale of two Indian cities By Shyam Nath; Yeti Nisha Madhoo
  40. Vehicle Electrification in Carsharing and Transportation Network Company (TNC) Fleets: Current and Future Trends By Shaheen, Susan; Farrar, Emily
  41. Volatility Analysis of Sustainability-Themed Japanese Equity Indices By Amane Saito; Hisashi Tanizaki
  42. How Well Do New K-12 Public School Sites in California Incorporate Mitigation Measures Known to Reduce Vehicle Miles Traveled? By Vincent, Jeffrey M. PhD; Maves, Sydney; Thomson, Amy
  43. The Effect of External Debt on Greenhouse Gas Emissions By Jorge Carrera; Pablo de la Vega
  44. The effects of major life events and exposure to adverse environmental conditions on health and health-related outcomes By Julia Mink
  45. Valuating the negative externality of wind turbines: traditional hedonic and difference-in-difference approaches By Westlund, Hans; Wilhelmsson, Mats
  46. Climate Change and Measures of Economic Growth:Solving the Spatial Mismatch Problem By Devina Lakhtakia; Ross McKitrick

  1. By: Michele Fioretti (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Jorge Tamayo (Harvard Business School - Harvard University [Cambridge])
    Abstract: Renewable generation creates a tradeoff between current and future energy production as generators produce energy by releasing previously stored resources. Studying the Colombian market, we find that diversified firms strategically substitute fossil fuels for hydropower before droughts. This substitution mitigates the surge in market prices due to the lower hydropower capacity available during dry periods. Diversification can increase prices, instead, if it results from mergers steepening a firm's residual demand. Thus, integrating production technologies within firms can smooth the clean-energy transition by offsetting higher prices during scarcity periods if the unaffected technologies help store renewables more than exercise market power.
    Keywords: Energy transition,Renewables,Hydropower generation,Diversified production technologies,Energy storage,Wholesale electricity markets
    Date: 2021–08–01
  2. By: Christian Hauenstein; Karlo Hainsch; Philipp Herpich; Christian von Hirschhausen; Franziska Holz; Claudia Kemfert; Mario Kendziorski; Pao-Yu Oei; Catharina Rieve
    Abstract: The European Union has increased pressure on Russia by enacting a coal embargo. Following a transition period, Russian coal imports will end in August 2022. Recent studies show that Germany will be able to substitute Russian supplies with imports from other countries by summer 2022. However, with the looming threat of a Russian gas supply stop, plans must be developed to ensure security of supply. In scenario calculations, DIW Berlin analyzed how the German electricity system can respond to a stop of Russian energy supplies (especially coal and natural gas) while still maintaining the accelerated coal phase-out and the 2022 nuclear phase-out plans. The calculations show that a secure electricity supply will be possible in 2023, even without Russian energy supplies. The shutdown of the final three nuclear power plants can and should take place as planned in December 2022. In the short term, coal-fired power plants from the grid reserves will have to be used and the standby mode of some power plants will have to be extended. In the medium term, the accelerated expansion of renewable energy infrastructure as envisaged by the German government in the set of measures known as the Easter Package is expected to lead to a decline in demand for natural gas and coal-fired power generation by 2030. Thus, an accelerated coal phase-out by 2030 as laid out in the coalition agreement is still possible.
    Date: 2022
  3. By: Walter Boltz; Klaus-Dieter Borchardt; Thierry Deschuyteneer; Jean Pisani-Ferry; Leigh Hancher; François Lévêque; Ben McWilliams; Axel Ockenfels; Simone Tagliapietra; Georg Zachmann
    Abstract: Uncertainty about the supply of Russian natural gas is causing extremely high and volatile European gas and electricity prices. European Union countries may struggle to import sufficient volumes of natural gas at reasonable prices. During the summer, the imperatives are to fill storage sites sufficiently in a coordinated manner and to organise sufficient import volumes to replace a substantial share of gas that might no longer come from Russia. Coordination...
    Date: 2022–06
  4. By: Noemie Martin; Pierre-Olivier Pineau
    Abstract: Reducing energy consumption and carbon emissions are two cornerstones of the fight against climate change. Signaling negative externalities of individual consumption on the environment is at the heart of public policies, and usually materializes through an increase in the price of polluting good and services. However, social resistance typically arises when such policies are implemented. In this experiment, we are interested in testing the context in which individuals would be willing to pay more for electricity. We use the situation of Québec (Canada), where low-cost hydropower sold below market value, akin to a consumption subsidy, leads to high residential consumption. Increasing regulated prices closer to their market value would result in a direct welfare gain and free some green energy, reducing greenhouse gases (GHG) in other sectors. The choice to pay more is a prisoner’s dilemma, and we find in this framework that giving clear and transparent information on the consequences of the price increase induces a majority of people to choose to pay more. In addition to the economic benefit of the public good, the presence of the environmental benefit increases contributions. Participants with a more severe budget constraint tend to contribute less. These results are encouraging for the development of efficient energy policies reducing GHG emissions. La réduction de la consommation d'énergie et des émissions de carbone sont deux pierres angulaires de la lutte contre le changement climatique. Signaler les externalités négatives de la consommation individuelle sur l'environnement est au cœur des politiques publiques, et se matérialise généralement par une augmentation du prix des biens et services polluants. Cependant, la résistance sociale se manifeste généralement lorsque de telles politiques sont mises en œuvre. Dans cette expérience, nous souhaitons tester le contexte dans lequel les individus seraient prêts à payer plus cher pour l'électricité. Nous utilisons la situation du Québec (Canada), où l'hydroélectricité à faible coût vendue en dessous de la valeur du marché, ce qui s'apparente à une subvention à la consommation, entraîne une forte consommation résidentielle. Une augmentation des prix réglementés plus proches de leur valeur de marché entraînerait un gain de bien-être direct et libérerait une partie de l'énergie verte, réduisant ainsi les gaz à effet de serre (GES) dans d'autres secteurs. Le choix de payer plus est un dilemme du prisonnier, et nous trouvons dans ce cadre que donner des informations claires et transparentes sur les conséquences de l'augmentation des prix incite une majorité de personnes à choisir de payer plus. En plus de l'avantage économique du bien public, la présence de l'avantage environnemental augmente les contributions. Les participants ayant une contrainte budgétaire plus sévère ont tendance à moins contribuer. Ces résultats sont encourageants pour le développement de politiques énergétiques efficaces réduisant les émissions de GES.
    Keywords: Public good,Voluntary environmental action,Green electricity, Bien public,action environnementale volontaire,électricité verte
    Date: 2022–06–23
  5. By: Gilbert E. Metcalf
    Abstract: More stringent fuel economy standards and increased market penetration of electric vehicles (EVs) present challenges to federal policy makers who historically have relied on motor vehicle fuel excise taxes to fund highway projects. This paper considers the distributional implications of a federal tax swap where a new vehicle miles travelled (VMT) tax is used to finance a reduction in the federal excise tax on gasoline. Whether the tax shift is progressive (relative to the pivot point) or not depends on the sign of the income elasticity of demand for fuel intensity. If it is negative (higher-income households demand more fuel efficient cars), then the tax shift is progressive around the pivot point. Conversely, if it is positive, then the tax shift is regressive around the pivot point. Where the pivot point occurs and how progressive a shift occurs is an empirical matter. Using data from the 2017 National Household Travel Survey (NHTS), I find that the income elasticity of fuel intensity is negative and that this revenue-neutral tax swap to be mildly progressive for all household incomes below $200,000. This is driven, in part, by the fact that higher income households are more likely to drive hybrid and electric vehicles and to own newer vehicles which, due to increasingly stringent fuel economy standards, tend to be more fuel efficient. How the progressivity of a tax swap changes as fuel economy standards are raised and EV market penetration increases depends on who purchases EVs and more efficient vehicles. Federal policy will likely play a role in influencing the future distribution of EV ownership. In addition, I find the tax swap benefits rural drivers and has no appreciable differential impacts on Black and Hispanic households.
    JEL: H22 H23 Q48 R48
    Date: 2022–06
  6. By: Lijing Zhu (China University of Petroleum); Jingzhou Wang (China University of Petroleum, IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Arash Farnoosh (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Xunzhang Pan (China University of Petroleum)
    Abstract: To reduce traffic congestion and protect the environment, license plate control (LPC) policy has been implemented in Beijing since 2011. In 2019, 100,000 vehicle license plates were distributed, including 60,000 for electric vehicles (EVs) and 40,000 for gasoline vehicle (GVs). However, whether the current license plate allocation is optimal from a social welfare maximization perspective remains unclear. This paper proposes a two-level Stackelberg game, which portrays the interaction between vehicle applicants and the government to quantify the optimal number of EV license plates under the LPC policy in Beijing. The equilibrium number of EV license plates derived from the Stackelberg model is 58,800, which could increase the social welfare by 0.38%. Sensitivity analysis is conducted to illustrate the impact of important influential factors — total license plate quota, vehicle rental fee, and energy price — on EV adoption. The LPC policy under COVID-19 is also studied through a scenario analysis. If the government additionally increases the total quota by 20,000, 24% could be allocated to GV and 76% to EV. One third reduction of the current vehicle rental fee could increase EV license plates by 10.5%. In terms of energy prices, when gasoline price is low, reducing electricity prices could contribute to EV adoption significantly, while that effect tapers off as gasoline prices increase.
    Keywords: Electric vehicle,License plate control (LPC) policy,Stackelberg game theory,License plate quota
    Date: 2022–04
  7. By: Nguyen-Tien, Viet; Dai, Qiang; Harper, Gavin D.j.; Anderson, Paul A.; Elliott, Robert J.R.
    Keywords: lithium-ion-batteries; electric vehicles; circular economy; recycle; life cycle assessment; supply chain; material flow analysis; transitions; transition management
    JEL: R14 J01
    Date: 2022–05–30
  8. By: Rohan Best (Department of Economics, Macquarie University); Paul J. Burke (Crawford School of Public Policy, Australian National University)
    Abstract: This paper uses household survey data from Australia to investigate whether renters face larger energy bills than otherwise similar households. We find that a negative unconditional effect of renting on residential electricity expenditure becomes positive when controlling for log net wealth, with renters on average spending about 8% more than otherwise similar households. This is a larger effect than in most prior studies. The effect operates via higher usage quantities rather than higher average prices, and a similar effect is found for overall residential energy expenditure including natural gas. Central to the story is that renters tend to have lower net wealth, and net wealth is associated with higher energy use due to reasons including additional appliance ownership. This makes net wealth an important control. The findings cast light on the potential for more ambitious policy responses to reduce energy-related disadvantages faced by renters in Australia. There is also scope for further research into whether similarly large effects are evident in other countries.
    Date: 2022–02
  9. By: Karamik, Yasemin; von Graevenitz, Kathrine
    Abstract: Recent evidence suggests a positive impact of air pollution on crime in large cities. We provide first evidence on the potential effect of air pollution on criminal activity using a broader set of geographical regions with lower air pollution levels. We use a unique combination of daily crime data with weather and emission records for the states of Baden-Wuerttemberg (BW) and Rhineland-Palatinate (RLP) in Germany from 2015 until 2017. We exploit the variation in air pollution which is attributable to changes in daily wind direction. We find that an increase of one standard deviation of PM10 leads to an increase in crime of 4.6%.
    Keywords: Air Pollution,Crime
    JEL: K42 Q53
    Date: 2022
  10. By: Rabah Arezki; Caleb Cho; Ha Nguyen; Kate Nguyen; Anh Pham
    Abstract: This paper explores the effect of oil price fluctuations on the stock returns of U.S. oil firms using a strategy of identification through heteroskedasticity exploiting the 2020 oil crash. Results are twofold. First, we find that a decline in oil prices statistically significantly reduces stock returns of oil firms. On average, a one percent decline in oil prices leads to a 0.44 percent decline in stock prices. Second, results point to the “irrelevance” of debt in mediating the effect of oil prices on stock returns of oil firms. The liquidity backstop provided by the Federal Reserve appears not to have muted the role of debt for oil firms.
    Keywords: oil prices, stock returns, debt
    JEL: E44 G12 Q43
    Date: 2022
  11. By: Volodina, Victoria; Wheatcroft, Edward; Wynn, Henry
    Abstract: District heating is expected to play an important role in the decarbonisation of the energy sector in the coming years since low carbon sources such as waste heat and biomass are increasingly being used to generate heat. The design of district heating often has competing objectives: the need for inexpensive energy and meeting low carbon targets. In addition, the planning of district heating schemes is subject to multiple sources of uncertainty, such as variability in heat demand and energy prices. This paper proposes a decision support tool to analyse and compare system designs for district heating under uncertainty using stochastic ordering (dominance) so that decision-makers can make robust decisions. The uncertainty in input parameters of the energy system model together with general scenarios are introduced to generate distributions of net present costs and emissions for each design. To perform inference about the induced distributions of outputs, we apply the orderings in the mean and dispersion. The proposed approach is demonstrated in an application to the waste heat recovery problem in district heating in Brunswick, Germany. The results obtained show that heat pump, a low carbon design option, is more robust in comparison to combined heat and power (CHP) and a mix of CHP and heat pump under all three scenarios, highlighting that robustness is an attractive feature of low-temperature waste heat recovery.
    Keywords: district heating; local sensitivity; scenarios; stochastic orderings; waste heat recovery; uropean Union’s Horizon 2020 research and innovation programme under grant agreement No 767429; project ReUseHeat.; esearch project Managing Uncertainty in Government Modelling (MUGM) funded by the Alan Turing Institute
    JEL: C1
    Date: 2022–06–01
  12. By: Stern, Nicholas; Xie, Chunping
    Abstract: China has announced its commitment to achieving carbon neutrality by 2060, and for this challenging goal to be reached within just four decades, there is a real urgency of shaping the low-carbon agenda in its 14 th Five-Year Plan and to ratchet up ambition on climate policy in the near term to peak emissions early. This paper argues that China will have to change the way of development by take a sustainable pathway to growth. And this new approach does not mean sacrificing economic growth; quite the opposite, it can boost growth by providing great opportunities in terms of jobs, efficiency, demand, and many other aspects, while reducing carbon emissions and enabling great benefits with regards to pollution, ecological restoration, biodiversity and well-beings. The COVID-19 pandemic has provided a window of opportunity for China and other countries to cooperate to link the post-pandemic economic recovery with the fight against climate change.
    Keywords: 14 Five-Year Plan; Carbon neutrality; China’s new growth story; low-carbon transition; T&F deal
    JEL: N0 R14 J01
    Date: 2022–05–10
  13. By: Rabah Arezki; Simeon Djankov; Ha Nguyen; Ivan Yotzov
    Abstract: We explore the effect of oil import price shocks on political outcomes using a worldwide dataset on elections of chief executives. Oil import price shocks cause a reduction in the odds of reelection of incumbents, an increase in media chatter about fuel prices, and an increase in non-violent protests. These results are present in democracies but absent in autocracies. To explain the dichotomy, we show that the pass-through from international to domestic fuel prices is limited in autocracies with adverse consequences on levels of debt and international reserves. The results point to the interdependence of goods markets and politics.
    Keywords: elections, democracy, autocracy, incumbent, oil prices, economic shocks
    JEL: D72 E21 P16 Q43
    Date: 2022
  14. By: Isaac K. Ofori (University of Insubria, Varese, Italy); Emmanuel Gbolonyo (University of Cape Town, South Africa); Nathanael Ojong (York University,Toronto, Canada)
    Abstract: This study contributes to the scholarly literature on the drive towards sustainable development in light of the UN’s Agenda 2030 and the African Union’s Agenda 2063 by examining pathways through which energy efficiency (EE) promotes inclusive green growth (IGG) in Africa. Our contribution is novel from both the conceptual and empirical perspectives. With regard to the former, we develop a framework on how EE and governance feed into IGG, and on the latter, our contribution is based on country-level data for 23 African countries for the period 1996 – 2020. First, evidence from the generalised method of moments (GMM) estimator shows that EE is not unconditionally effective for spurring IGG. Second, we find that governance is both directly, and indirectly effective for repackaging EE to foster IGG. In particular, the evidence suggests that governance mechanisms for controlling corruption while ensuring regulatory quality and government effectiveness are keys for forming relevant synergies with EE to foster IGG. Third, regarding the socioeconomic sustainability (SES) and environmental sustainability (EVS) dichotomy of IGG, we find that the EE-governance pathway is more effective for driving the latter compared to the former. We also make some policy recommendations.
    Keywords: , Inclusive Growth; Inclusive Green Growth; Greenhouse Gases; Environmental Sustainability; Carbon Intensity; Sustainable Development
    JEL: I3 O11 O43 O44 O55 Q01 Q43 Q56
    Date: 2022–01
  15. By: Sareh Vosooghi; Maria Arvaniti; Rick van der Ploeg
    Abstract: This paper studies the formation of international climate coalitions by heterogeneous countries. Countries rationally predict the consequences of their membership decisions in climate negotiations. We offer an approach to characterise the equilibrium number of coalitions and their number of signatories independent of their heterogeneity, and we suggest a tractable algorithm to fully characterise the equilibrium. In a dynamic game analysis of a general equilibrium model of the economy integrated with climate dynamics, a grand climate coalition or multiple climate coalitions may form in equilibrium, but if the policymakers are patient, the number of signatories in all climate treaties is a Tribonacci number. Our results are robust to the possibility of renegotiation and investment in green technologies besides fossil fuels.
    Keywords: climate economics, international environmental agreements, coalition formation, heterogeneous countries, integrated assessment models
    JEL: Q54 D70 D50
    Date: 2022
  16. By: Lyu, Chenyan (Department of Economics, Copenhagen Business School); Scholtens, Bert (Department of Finance, University of Groningen)
    Abstract: Emission trading is gaining momentum with its increasing market size and constantly improving information transmission mechanisms. With carbon assets becoming prominent as an alternative asset in investment portfolios, the ETS model has engaged a broad range of market participants, including not only emissions-intensive energy corporations but also individual and institutional investors. As arbitrage opportunities arise, price fluctuations are likely to occur, which typically have a mutual spillover effect. This paper examines how market fluctuations (e.g., volatilities) in these markets interact with each other, among carbon prices across four jurisdictions – European Union, New Zealand, California, and Hubei (China) ETS. The data used in this paper consists of weekly return and volatility, constructed by the daily prices from four markets, covering the period 30th April 2014, through 1st December 2021. We focus theoretically on the time-varying parameter (TVP)-VAR methodology, and empirically the connectedness approach. Our empirical results show average return (volatility) spillover is 6.03% (8.25%), which means that the dynamics of each of the carbon market are mainly explained by themselves and not due to spillovers from other markets, indicating that the global carbon prices are largely (albeit not completely) dependent.
    Keywords: Carbon markets integration; Volatility connectedness; TVP-VAR; Market risk
    JEL: C32 E44 Q43 R11
    Date: 2022–05–23
  17. By: Ar\'anzazu de Juan; Pilar Poncela; Vladimir Rodr\'iguez-Caballero; Esther Ruiz
    Abstract: In this paper, we survey recent econometric contributions to measure the relationship between economic activity and climate change. Due to the critical relevance of these effects for the well-being of future generations, there is an explosion of publications devoted to measuring this relationship and its main channels. The relation between economic activity and climate change is complex with the possibility of causality running in both directions. Starting from economic activity, the channels that relate economic activity and climate change are energy consumption and the consequent pollution. Hence, we first describe the main econometric contributions about the interactions between economic activity and energy consumption, moving then to describing the contributions on the interactions between economic activity and pollution. Finally, we look at the main results on the relationship between climate change and economic activity. An important consequence of climate change is the increasing occurrence of extreme weather phenomena. Therefore, we also survey contributions on the economic effects of catastrophic climate phenomena.
    Date: 2022–06
  18. By: Damini Singh; Indrani Gupta (Institute of Economic Growth, Delhi University, Delhi); Sagnik Dey
    Abstract: This paper provides a causal estimate of the contemporaneous impact of outdoor air pollution on cognitive and academic performance of children aged 8-11 years in India by combining satellite PM2.5 data with the two rounds of Indian Human Development Survey. Our identification strategy relies on the use of thermal inversions as an instrument that generates exogenous variation in the pollution levels. Results show that exposure to average PM2.5 concentrations in the past 12 months prior to the month of test taken by the children has a significant detrimental impact on their cognitive ability in India. Specifically, a 1 µg/m3 increase in average PM2.5 concentrations in the past 12 months decreases the math performance by 10-16 percentage points and the reading performance by 7-9 percentage points. We also find that there is a significant fall in the combined agestandardised cognitive score. The results imply that the cost of air pollution in India is much higher than estimated, and a narrow focus on health-related outcomes understate the magnitude of negative impact of pollution, as mental acuity is essential for higher productivity of children.
    Keywords: Air pollution, Cognitive performance, Educational outcomes, Thermal inversions, India.
    JEL: O12 O13 I15 I24 I25 Q53 Q56
    Date: 2022–05–01
  19. By: Yihao Xue (School of Economics at Henan University, Kaifeng, Henan); Qiaoyu Liang (School of Economics at Henan University, Kaifeng, Henan); Bing Tong (Center for Financial Development and Stability at Henan University, and School of Economics at Henan University, Kaifeng, Henan)
    Abstract: Based on a New Keynesian model with a transient interest rate peg and energy inputs in production, we examine the impact of China`s interest rate liberalization on the transmission of energy supply shocks. Theoretical analysis shows that in the face of negative supply shocks, output decreases less or even increases while inflation rises more under a fixed interest rate compared with a flexible interest rate. We construct the Divisia energy index based on Chinese data to test the model predictions. We identify energy supply shocks following the strategy of Kilian (2009) and obtain impulse responses using the local projection method proposed by Jordà (2005). The empirical results are consistent with our model predictions.
    Keywords: Interest rate liberalization, Energy supply shocks, Divisia Index, New Keynesian model
    JEL: E31 E42 E43 E52 E58 Q43
    Date: 2022–01
  20. By: Peter Reusens (Economics and Research, National Bank of Belgium); Frank Vastmans (KU Leuven); Sven Damen (University of Antwerp)
    Abstract: Hedonic house price indices adjust the average sales prices for the change in the quality of the property sold over time. This paper proposes a framework to disentangle the contribution of each individual dwelling characteristic to this quality change. We apply our framework to a unique dataset for Belgium for the period 2011Q3-2021Q2 in which we combine the universe of residential real estate transactions with the datasets of the energy performance certificates of the regional energy authorities. We find that the price of an identical dwelling has increased by 7 % less over the past decade compared to the average price of the houses sold and this is largely the result of the improved energy performance over the past decade. Moreover, taking into account the energy efficiency in house price indices will only become more important as it will need to improve substantially more to reach the European climate goal of having an energy efficient building stock by 2050. Turning to the recent period, we show that the strong price increases observed in the first year of the COVID-19 pandemic are not due to changes in the quality of the property sold as the average dwelling characteristics remained broadly stable. Furthermore, despite the slightly increased price discount of terraced houses and small garden and dwelling sizes, price growth continued to be slightly higher in cities compared to their rural urban fringe and the commuter belt
    Keywords: : House price index, hedonic regression, quality adjustment, housing market, COVID-19 pandemic, energy efficiency
    JEL: C43 E30 E31 Q58 R31
    Date: 2022–05
  21. By: Earnhart, Dietrich; Germeshausen, Robert; von Graevenitz, Kathrine
    Abstract: Information-based policies play an important role in environmental protection efforts around the world. These policies use information provision and/or disclosure to shape behavior in order to meet the policy objective; for example, mandatory information disclosure requires firms to measure and report their pollutant emissions. This study investigates the influence of a particular information-based policy - the European Union's mandatory and public emission registry of polluting facilities - on financial outcomes of German firms: revenues, costs, and profits. Using detailed firm-level data for the years 1998 to 2016, we exploit size- and pollution-specific reporting thresholds to isolate the effect of this policy. We compare firms that own facilities required to report in the first EPER wave with similar firms that do not own such facilities. For this comparison, we deploy both a difference-in-differences design and an event study. Our findings suggest that the introduction of EPER in 2001 increased both operating revenues and expenditures, yielding a neutral impact on the operating profits of affected firms. These results support neither of the two competing hypotheses regarding financial outcomes: costly regulation hypothesis and Porter Hypothesis.
    Keywords: Information-based Regulation,Environmental Policy,Financial Performance,Porter Hypothesis
    JEL: K32 L21 O31 Q52 Q58
    Date: 2022
  22. By: Mitsch, Frieder; McNeil, Andrew
    Abstract: A clean environment is a public good, with the benefits shared by all. While most individuals can agree on the need to implement green policies, we argue that the cost-benefit calculation is quite different depending on where one lives. Those individuals living in places where green infrastructure is infeasible, such as cities, can advocate for green technologies knowing that the chance of having to bear the cost of infrastructure in their ‘backyard’ is low. We test how the building of wind turbines and solar farms changes one’s political preferences in the German state of Baden-Württemberg. We use a difference-indifference design based on whether one’s area is designated for potential infrastructure in the future. We show that when the burden of ‘green’ infrastructure falls on voters, wind turbines or solar farms in one’s ‘backyard’, these local authorities vote less for the Green Party. Additionally, using individual level data from SOEP, we find that it is those individuals who previously voted Green who are the most likely to desert their party in the face of green infrastructure, rather than disincentivising potential ‘switchers’. We argue that this has profound implications for the move to ‘net zero’. Green parties face a Catch22 situation, the very policies that draw their support create a backlash when implemented.
    JEL: N0
    Date: 2022–05–01
    Abstract: Produk varash oil diproduksi oleh PT. Varash Saddan Nusantara yang berasal dari Bali. Produk ini sangat ampuh tetapi belum banyak orang yang mengetahui nya. Produk varash merupakan salah satu produk unggulan minyak obat. Varash Natural Oil yang banyak di jual berfungsi sebagai minyak oles atau minyak urut yang mengandung ekstrak herbal alami dan rempah rempah yang diracik langsung dari para pembuat minyak herbal di Bali. Varash Natural Oil digunakan untuk membantu meredakan pegal linu dan sakit pinggang.
    Date: 2022–04–16
  24. By: Allister Loder; Fabienne Cantner; Lennart Adenaw; Markus Siewert; Sebastian Goerg; Markus Lienkamp; Klaus Bogenberger
    Abstract: In spring 2022, the German federal government agreed on a set of measures that aim at reducing households' financial burden resulting from a recent price increase, especially in energy and mobility. These measures include among others, a nation-wide public transport ticket for 9 EUR per month and a fuel tax cut that reduces fuel prices by more than 15% . In transportation research this is an almost unprecedented behavioral experiment. It allows to study not only behavioral responses in mode choice and induced demand but also to assess the effectiveness of transport policy instruments. We observe this natural experiment with a three-wave survey and an app-based travel diary on a sample of hundreds of participants as well as an analysis of traffic counts. In this first report, we inform about the study design, recruiting and initial participation of study participants.
    Date: 2022–06
  25. By: Karel Janda; Binyi Zhang
    Abstract: As facilitated by governmental authorities promising sustainable economic growth, green bonds have gained prominence in China's capital market to scale up the transition to a climate-resilient economy. Although the issuance volume of the Chinese green bond market has been growing rapidly in recent years, the impact of green label on bond pricing is not adequately studied. Thus, this paper aims to investigate whether this newly developed financial instrument offers investors in China an attractive yield compared to other equivalent conventional bonds. By applying a matching method and subsequently a fixed-effects estimation, our empirical results reveal a significant negative yield premium of green bonds on average -1.8 bps lower than their conventional counterparts in the Chinese secondary market. In addition to that, the yield premium is found to vary across issuers' business sectors mainly due to the public reputation of bond issuers. Moreover, our empirical results reveal an insignificant relationship between the green certification and the yield premium, reflecting an inconsistent green definition in the Chinese market. Our results point to some practical implications for policymakers and investors.
    Keywords: Green bonds, Green bond premium, ESG, China
    JEL: G12 Q56
    Date: 2021–11–25
  26. By: Rob ter Burg; Yuli Shan; Klaus Hubacek; Franco Ruzzenenti
    Abstract: The largest 6,529 international corporations are accountable for almost 30% of global CO2e emissions. A growing awareness of the role of the corporate world in the path toward sustainability has led many shareholders and stakeholders to pursue increasingly stringent and ambitious environmental goals. However, how to assess the corporate environmental performance objectively and efficiently remains an open question. This study reveals underlying dynamics and structures that can be used to construct a unified quantitative picture of the environmental impact of companies. This study shows that the environmental impact (metabolism) of companies CO2e ,energy used, water withdrawal and waste production, scales with their size according to a simple power law which is often sublinear, and can be used to derive a sector-specific, size-dependent benchmark to asses unambiguously a company's environmental performance. Enforcing such a benchmark would potentially result in a 15% emissions reduction, but a fair and effective environmental policy should consider the size of the corporation and the super or sublinear nature of the allometric relationship.
    Date: 2022–06
  27. By: Ogunpaimo, Oyinlola Rafiat; Buckley, Cathal; Hynes, Stephen; O'Neill, Stephen
    Abstract: There exist an urgent need to reduce ammonia (NH3) emissions to control air pollution and moderate other related environmental and health hazards. . This study adopts farm-level marginal abatement cost curve (MACC) analysis across different farm typologies in Ireland. The study also addresses the interactions amongst the abatement options and the presence of farm heterogeneity in order to examine whether it is sub-optimal to adopt a single marginal abatement cost curve across different farm systems. Teagasc National Farm Survey (NFS) 2020 data was used as the basis of the analysis in the paper. The findings show that the selected measures are effective in abating ammonia emissions at varying levels across the different farm typologies. Liming, protected urea and crude protein in diets were primarily cost-saving while the clover measure examined moved between cost-saving and cost positive across the different farm types. The presence of heterogeneity across the farm typologies was further supported by the difference in the MACC diagram of the farm types. Furthermore, a higher abatement potential (>100 kgNH3) was reported for the combined measure as against the stand-alone measures.
    Keywords: Environmental Economics and Policy, Farm Management
    Date: 2022–04
  28. By: Ralf Martin; Sam Unsworth; Anna Valero; Dennis Verhoeven
    Abstract: In the recovery from Covid-19, innovation and diffusion will be key to addressing several structural challenges facing the UK economy. These include improving the UK's longstanding poor productivity performance, addressing large-scale disparities across and within regions, and re-orientating the economy to reach net zero emissions of greenhouse gases by 2050. We analyse patent data to identify areas where the UK has comparative advantage in innovation, and where the economic returns in the UK might be large, highlighting technologies that are relevant for two key societal challenges: net zero and dealing with the pandemic. We conclude with policy implications. While the government's 'Ten Point Plan for a Green Industrial Revolution' provides a clear signal for future investment and growth, this needs to be accelerated and complemented with consistent and long-term innovation and industrial policy to facilitate transition to sustainable business models, investments and related innovation.
    Keywords: covid-19, productivity, technological change, UK economy, climate change, net zero, innovation, R&D
    Date: 2020–12–18
  29. By: Paltseva, Elena (Stockholm Institute of Transition Economics); Toews , Gerhard (New Economic School); Troya-Martinez, Marta (New Economic School)
    Abstract: Contracts between governments and international firms are difficult to enforce, especially under weak institutions: governments are tempted to renegotiate tax payments after investments occurred. Theoretically, such a hold-up problem is solved by using self-enforcing agreements that increase the value of sustaining the relationship over time. By delaying production, tax payments and investments, firm’s threat to terminate following a renegotiation becomes more effective. Using rich proprietary data on the oil and gas industry, we show that contracts between the oil majors and petro-rich economies with weak institutions are indeed delayed relative to countries with strong institutions. To push for a causal interpretation, we show that this backloading in countries with weak institutions only emerges in early 1970s. We attribute this to a change in the international view towards countries’ sovereignty over natural resources brought by the postwar weakning of the OECD countries. This new world order made it politically difficult for developed countries to continue the established practice of military interventions to back up the enforcement of the contracts of their oil firms. Fading of (military) enforcement, together with the absence of local legal enforcement, triggered the need to backload the contracts.
    Keywords: Dynamic Incentives; Political Economy; Institutions; Oil
    JEL: D02 D86 H20 L14 P48 Q30
    Date: 2022–06–21
  30. By: Julia Anna Bingler (Council on Economic Policies (CEP); ETH Zürich - CER-ETH - Center of Economic Research at ETH Zurich); Mathias Kraus (University of Erlangen-Nuremberg-Friedrich Alexander Universität Erlangen Nürnberg); Markus Leippold (University of Zurich; Swiss Finance Institute); Nicolas Webersinke (riedrich-Alexander-Universität Erlangen-Nürnberg)
    Abstract: Corporate climate disclosures are considered an essential prerequisite to managing climate-related financial risks. At the same time, current disclosures are imprecise, inaccurate, and greenwashing-prone. We introduce a deep learning approach to enable comprehensive climate disclosure analyses by fine-tuning the \climatebert model. From of 14,584 annual reports of the MSCI World index firms from 2010 to 2020, we extract the amount of cheap talk, defined as the share of precise versus imprecise climate commitments. We then test various hypotheses on the drivers of cheap talk. In particular, we ask whether climate initiatives discipline companies in the way they define and disclose actionable climate commitments in their annual reports.
    Keywords: Corporate climate disclosures, voluntary reporting, commitments, TCFD recommendations, textual analysis, natural language processing
    JEL: G2 G38 C8 M48
    Date: 2022–06
  31. By: Yasunobu Wakashiro
    Abstract: As of May 2022, the coronavirus disease 2019 (COVID-19) still has a severe global impact on people's lives. Previous studies have reported that COVID-19 decreased the electricity demand in early 2020. However, our study found that the electricity demand increased in summer and winter even when the infection was widespread. The fact that the event has continued over two years suggests that it is essential to introduce the method which can estimate the impact of the event for long period considering seasonal fluctuations. We employed the Bayesian structural time-series model to estimate the causal impact of COVID-19 on electricity demand in Japan. The results indicate that behavioral restrictions due to COVID-19 decreased the daily electricity demand (-5.1% in weekdays, -6.1% in holidays) in April and May 2020 as indicated by previous studies. However, even in 2020, the results show that the demand increases in the hot summer and cold winter (the increasing rate is +14% in the period from 1st August to 15th September 2020, and +7.6% from 16th December 2020 to 15th January 2021). This study shows that the significant decrease in electricity demand for the business sector exceeded the increase in demand for the household sector in April and May 2020; however, the increase in demand for the households exceeded the decrease in demand for the business in hot summer and cold winter periods. Our result also implies that it is possible to run out of electricity when people's behavior changes even if they are less active.
    Date: 2022–06
  32. By: Langot, François; Tripier, Sébastien
    Abstract: Avec 34% de son pétrole, 55% de son gaz et 26% de son charbon venant de Russie, l’Allemagne s’est trouvée au centre du débat sur l’opportunité de mettre en place un embargo sur l’énergie russe en Europe. Face à la résistance de son gouvernement à suivre cette voie, Bachmann et al. (2022) ont quantifié les effets sur l’économie allemande d’un arrêt des importations d’énergie en provenance de Russie. Ce débat concernant tous les pays de l’Union Européenne qui seraient aussi impactés, nous évaluons le coût de cet embargo pour l’économie mondiale, et en particulier pour les pays de l’Union Européenne. Malgré la complexité d’une telle évaluation, et la prudence avec laquelle il faut interpréter les résultats, il est nécessaire d’estimer les coûts de cet embargo pour informer les citoyens de l’Union Européenne et mettre en place de politiques d’accompagnement si cette politique est adoptée. L’intérêt de la contribution de Bachmann et al. (2022) est d’apporter des résultats pour l’Allemagne mais également pour les principales économies, même s’ils ne sont pas directement présentés dans leur étude. Nous les analysons dans cette note pour évaluer le coût de l’embargo sur les énergies russes pour les économies européennes. Les principales conclusions sont : (i) Le coût moyen de l’embargo dans l’Union Européenne équivaut à une réduction de -0,7% des dépenses nationales (consommation des ménages, investissement des entreprises et dépenses publiques) par an et par habitant. (ii) Le coût de l’embargo serait plus élevé pour la Russie que pour l’Union européenne avec une perte de -2,3% des dépenses nationales. (iii) Il existe une forte hétérogénéité dans les coûts de l’embargo au sein de l’Union Européenne entre la Lituanie (le pays le plus impacté avec -5,3% des dépenses nationales) et le Luxembourg (qui connaîtrait un gain de 0,2% des dépenses nationales). L’Allemagne et la France occupent une position intermédiaire dans l’Union Européenne avec des pertes de -0,3% et -0,2% des dépenses nationales respectivement. (iv) Au sein de chaque pays, il existe d’importantes différences sectorielles avec une plus forte contraction des secteurs plus dépendants de l’énergie.
    Keywords: Ukraine, Russia, Europe, embargo, oil, gas
    Date: 2022–04
  33. By: LIAN, Ying; LUCAS, Flavien; SÖRENSEN, Kenneth
    Abstract: Electric vehicle routing problems (EVRPs) with recharging policy consider the limited range of electric vehicles and thus include intermediate visits to charging stations (CSs). In general, minimizing the resultant charging costs such as charging duration or charging amount are also part of the objective of EVRP. Accordingly, EVRPs have received considerable attention over the past years. Nevertheless, this type of problems in the domain of passenger transportation, a VRP variant, has been rarely studied in the literature, especially with time windows, a realistic nonlinear charging function or partial charging policy. Hence this research extends the existing work on EVRP to an On-Demand Bus Routing Problem (ODBRP) which transports passengers with bus station assignment (BSA). The resultant problem is the EODBRP. Specifically, each passenger can have more than one stations to board or alight, and they are assigned to the ones with the smallest increase in the total user ride time (URT). In EODBRP, frequent intermediate visits to CSs are considered. Moreover, nonlinear charging functions are in use and partial charging strategy is applied. To solve the EODBRP, a greedy insertion method with ‘charging first, routing second’ strategy is developed, followed by a large neighborhood search (LNS) which consists of local search (LS) operators to further improve the solution quality. Experimental data were generated by a realistic instance generator based on a real city map, and the corresponding results show that the proposed heuristic algorithm performs well in solving the EODBRP. Finally, sensitivity analyses with divergent parameters such as the temporal distributions of passengers and bus ranges may provide practical guidance
    Keywords: On-demand bus routing problem, Electric vehicle, Non-linear charging function, Partial charging
    Date: 2022–05
  34. By: Céline Guivarch (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); Nico Bauer (PIK - Potsdam-Institut für Klimafolgenforschung); Panagiotis Fragkos; Daniel Huppmann; Marc Jaxa-Rozen; Ilkka Keppo (Aalto University); Elmar Kriegler (PIK - Potsdam-Institut für Klimafolgenforschung); Tamás Krisztin; Giacomo Marangoni; Steve Pye (UCL - University College of London [London]); Keywan Riahi; Roberto Schaeffer (UFRJ - Universidade Federal do Rio de Janeiro); Massimo Tavoni; Evelina Trutnevyte (UNIGE - Université de Genève); Detlef van Vuuren (Utrecht University [Utrecht]); Fabian Wagner
    Abstract: As they gain new users, climate change mitigation scenarios are playing an increasing role in transitions to net zero. One promising practice is the analysis of scenario ensembles. Here we argue that this practice has the potential to bring new and more robust insights compared with the use of single scenarios. However, several important aspects have to be addressed. We identify key methodological challenges and the existing methods and applications that have been or can be used to address these challenges within a three-step approach: (1) pre-processing the ensemble; (2) selecting a few scenarios or analysing the full ensemble; and (3) providing users with efficient access to the information.
    Date: 2022
  35. By: Aldaz Pena, Raul
    Abstract: Presidents need to craft political support to push through policy changes. But even when new policies are socially desirable, they are not always politically feasible. This article shows that in resource-rich countries, presidents can use windfall revenues to obtain support for their policy agenda. Using Ecuador as a case study, I show that oil revenues and presidentled policy changes have the same long-run trends (i.e. both variables are co-integrated); government expenditures link oil revenues and policy change in the short run; and more discretionary budget rules also increase president-led policy changes. In this country, presidents produced policy changes only when they benefited from high oil revenues. These findings contribute to the literature on policymaking in Latin America; they show that the fiscal context in which policymaking institutions operate shapes presidents’ ability to produce policy changes and their long-run patterns. The results also present a framework to study policymaking in resource-rich countries. Los presidentes necesitan elaborar apoyo político para aprobar cambios de políticas públicas. Pero incluso cuando estos cambios son socialmente deseables, estos no siempre son políticamente factibles. Este artículo muestra que en países ricos en recursos naturales, los presidentes pueden usar estos recursos para obtener apoyo para su agenda de políticas. Usando Ecuador como estudio de caso, se prueba, primero que los ingresos petroleros y los cambios de política liderados por el presidente tienen las mismas tendencias de largo plazo (i.e. ambas variables están cointegradas), segundo, que los gastos gubernamentales unen estos recursos y los cambios de política en el corto plazo y, finalmente, que reglas fiscales discrecionales también incrementan los cambios de política empujados por el presidente. Estos hallazgos contribuyen a la literatura sobre formación de políticas en Latinoamérica: muestran que el contexto fiscal en el que operan las instituciones moldean la habilidad del presidente para producir cambios de política y sus patrones de largo plazo. Además, presentan un marco para estudiar la formación de políticas en países ricos en recursos naturales.
    Keywords: Ecuador; policy change; oil; institutions
    JEL: N0
    Date: 2021–08–01
  36. By: Perona, Mathieu
    Abstract: Du sentiment d’impuissance à la révolte, de la représentation d’un écologie punitive à celle d’une sobriété heureuse, le thème du bien-être traverse les représentations du changement climatique et de la nécessaire transition écologique. Dans un format plus long que celui de nos Notes habituelles, nous réalisons ici un parcours de la littérature scientifique qui mobilise la mesure du bien-être subjectif pour éclairer ces enjeux. Comme nous l’avons démontré dans d’autres domaines, le bien-être subjectif constitue une manière de mesurer les effets du changement climatique. Dépassant les seules conséquences matérielles, il met en évidence le coût important de la plus grande variabilité du climat qui résulte du réchauffement planétaire. À une échelle plus locale, il souligne de même tant les effets délétères de la pollution que ceux, bénéfiques, d’un accès à des espaces naturels. Notre compréhension de la manière dont se construit l’évaluation de la satisfaction dans la vie fournit en parallèle des outils pour dessiner les transitions vers des modes de vie moins consommateurs en ressources. Le pluriel est ici important : la diversité des situations au regard des consommations à réguler impose une grande attention aux capacités d’engagement et à l’acceptabilité des évolutions proposées. Le changement climatique génère de fortes réactions émotionnelles. Si l’éco-anxiété pèse aujourd’hui sur le bien-être d’un nombre croissant de Français, et particulièrement chez les jeunes générations, la colère à l’égard de la lenteur des progrès constitue un puissant facteur de passage à l’action. Elle n’est heureusement pas le seul facteur. De nombreuses études soulignent qu’adopter des comportements plus éco-responsables va de pair avec un niveau de bien-être plus élevé.
    Keywords: Bien-être, Wellbeing, Climate change, changement climatique, transition écologique
    Date: 2022–07
  37. By: Rita Abdel Sater (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The works compiled in this thesis are concrete examples of how methods, insights and evidence from behavioural science and economics could enlighten policy makers wishing to understand and reinforce pro-environmentalism. The 1st part is an application of methods and insights from psychology to environmental public policy and is the product of a collaboration with policy makers in the French Parisian region, to tackle two polluting behaviours: littering and household combustion. The 1st chapter shows how laboratory experiments using psychometric methods from vision research could be crucial to inform policy makers on how to maximise the effectiveness of littering interventions, by quantifying the increase in visual salience following a change in the colour of trash bins in an urban setting. The 2nd chapter, using a field experimental setting, shows that while information provision is not enough to change household combustion behaviour, increasing the salience of indoor pollution by combining feedback provision and social comparison is effective in changing behaviour and decreasing indoor air pollution. The 2nd part of this thesis examines the relationship between socioeconomic status and the psychological mechanisms underlying pro-environmentalism and behavioural interventions. The 3rd chapter shows that the positive association between socioeconomic status and pro-environmental attitudes is partially mediated by individual time preferences. Chapter 4 is a short review suggesting that socioeconomic backgrounds could moderate the effectiveness of popular environmental behavioural interventions that leverage on biases likely to be heterogeneous across income groups.
    Abstract: Les travaux compilés dans cette thèse représentent des exemples de la manière dont les méthodes, connaissances et résultats des sciences comportementales et économiques pourraient informer les décideurs publics souhaitant comprendre et renforcer les politiques environnementales. La 1ère partie est une application des méthodes de la psychologie aux politiques publiques environnementales, et le produit d'une collaboration avec des décideurs publics de la région parisienne, abordant deux comportements polluants : les déchets et la combustion domestique. Le premier chapitre illustre comment les expérimentations en laboratoire utilisant des méthodes psychométriques peuvent informer les décideurs sur la manière de maximiser l'efficacité des interventions contre les ordures dans la rue. Le 2ème chapitre, utilisant un cadre expérimental sur le terrain, montre qu'une combinaison de feedback personnalisé et des éléments de comparaison sociale est efficace pour modifier le comportement de combustion domestique et réduire la pollution de l'air intérieur. La 2ème partie de cette thèse examine la relation entre le statut socioéconomique et les mécanismes psychologiques qui sous-tendent le pro-environnementalisme et les interventions comportementales. Le chapitre 3 montre que l'association positive entre le statut socio-économique et les attitudes pro-environnementales est partiellement médiée par les préférences temporelles. Le chapitre 4 suggère que les antécédents socioéconomiques peuvent modérer l'efficacité des interventions comportementales environnementales couramment employées qui s'appuient sur des biais susceptibles d'être hétérogènes entre les différents niveaux de revenus.
    Keywords: Experiments,Environmental policy,Behavioural science,Expérimentation,Politiques environnementales,Sciences comportementales
    Date: 2021–09–27
  38. By: Rajashri Chakrabarti; Marco Del Negro; Julian di Giovanni; Laura Pilossoph
    Abstract: What are the implications of climate change, and climate change–related policies, for macroeconomics in general and monetary policy in particular? This is the key question debated at a recent symposium on “Climate Change: Implications for Macroeconomics” organized by the Applied Macroeconomics and Econometrics Center (AMEC) of the New York Fed on May 13. This post briefly summarizes the content of the discussion and provides links to recordings of the various sessions and the participants’ slides.
    Keywords: climate change; macroeconomics
    JEL: E2 Q54
    Date: 2022–07–07
  39. By: Shyam Nath; Yeti Nisha Madhoo
    Abstract: This paper empirically tests the suitability of local vs state government expenditure in providing an environmental public good, namely airborne pollution control in two municipal areas in India. We employ an innovative methodology where factual and counterfactual state and local expenditure regimes are constructed to capture different degrees of decentralization. Econometric results highlight higher efficacy of state level expenditure (centralization) as spillover/regional effects become important. Particularly, superiority of state expenditure is evident in the control of suspended particulate matter (SPM), which has wide cross-boundary effects. Local expenditure and the counterfactual of local expenditure for uniform provision (both decentralized provision modes) emerge as more effective than state to control point-source local pollutant SO2. However, they may also supplement the effects generated by state expenditure in the case of NO2 emissions, which entail spillovers and seem amenable to pressure group influence at local level.
    Keywords: Environmental governance; fiscal decentralization; atmospheric pollution; spillover effects; non-point source pollution; India
    JEL: E31 E61 E65
    Date: 2021
  40. By: Shaheen, Susan; Farrar, Emily
    Keywords: Social and Behavioral Sciences
    Date: 2022–01–01
  41. By: Amane Saito (Graduate School of Economics, Osaka University); Hisashi Tanizaki (Graduate School of Economics, Osaka University)
    Abstract: In this paper, we analyze the return and volatility of portfolios based on Sustainability Themed Japanese Equity Index, which focuses on social (S) and environment (E) using the Stochastic Volatility (SV) model. The daily data of stock price from January 5, 2015 to October 29, 2021 are utilized. As a result of the analysis, it was confirmed that the asymmetry effect, which captures the increase in volatility after a stock price decline, is significantly smaller for the portfolio that take gender diversity into account. On the other hand, no effect of considering gender diversity was found for the holiday effect, the turn of the month effect, and U.S. volatility spillover effect. In addition, for the portfolio that take into account the information disclosure on corporate greenhouse gas (GHG) emissions, which is the theme of E, the asymmetry effect was confirmed tobe significantly smaller in Material industry as well.
    Keywords: SV model, Sustainability themed Indices, Gender Diversity, Greenhouse Gas(GHG) emissions, Market Anomaly (asymmetry effect, holiday effect, turn of the month effect)
    JEL: C58 G17 M14 Q50
  42. By: Vincent, Jeffrey M. PhD; Maves, Sydney; Thomson, Amy
    Keywords: Social and Behavioral Sciences
    Date: 2022–06–01
  43. By: Jorge Carrera; Pablo de la Vega
    Abstract: We estimate the causal effect of external debt (ED) on greenhouse gas (GHG) emissions in a panel of 78 emerging market and developing economies (EMDEs) over the 1990- 2015 period. Unlike previous literature, we use external instruments to address the potential endogeneity in the relationship between ED and GHG emissions. Specifically, we use international liquidity shocks as instrumental variables for ED. We find that dealing with the potential endogeneity problem brings about a positive and statistically significant effect of ED on GHG emissions: a 1 percentage point (pp.) rise in ED causes, on average, a 0.7% increase in GHG emissions. Moreover, when disaggregating ED between public and private indebtedness, instrumental variable estimates allow us to find a positive and statistically significant effect of external public debt on GHG emissions. Finally, disaggregation by type of creditor reveals that the external public debt from bilateral (private) creditors causes, on average, a 1.8% (1.2%) increase in GHG emissions. On the contrary, the instrument used is not relevant in the case of multilateral lending so we have not found any significant effect of external public debt from IMF creditors or other multilateral creditors on environmental damage.
    Date: 2022–06
  44. By: Julia Mink (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    Abstract: In this dissertation, I examine the effects of major life events and exposure to adverse environmental conditions on health and health-related outcomes. The objective of this work is to establish causal relationships using quasi-experimental methods and mobilising different sources of micro-level data from France. Each of the four chapters that compose this dissertation is a stand-alone, independent piece of research that addresses distinct policy-relevant issues. In the first two chapters, I consider the impact of retirement and the dissolution of a romantic partnership, respectively, on income and diet and discuss the potential health effects of these changes. In the third chapter, I investigate the consequences of exposure to adverse conditions related to World War II during childhood and adolescence on health outcomes in adulthood. In the fourth chapter, I examine the short-term effects of exposure to ambient air pollution on health care use and costs.
    Abstract: Dans cette thèse, j'examine les effets de certains événements majeurs de la vie et de l'exposition à des conditions environnementales défavorables sur la santé et les résultats de santé. L'objectif de ce travail est d'établir des relations causales en utilisant des méthodes quasi-expérimentales et en mobilisant différentes sources de données de micro-niveau en France. Chacun des quatre chapitres qui composent cette dissertation est un travail de recherche autonome et indépendant qui aborde des questions distinctes et pertinentes pour les politiques publiques. Dans les deux premiers chapitres, j'examine l'impact de la retraite et de la séparation du couple, respectivement, sur le revenu et le régime alimentaire et je discute des effets potentiels de ces changements sur la santé. Dans le troisième chapitre, j'étudie les conséquences de l'exposition à des conditions défavorables liées à la Seconde Guerre mondiale pendant l'enfance et l'adolescence sur la santé à l'âge adulte. Dans le quatrième chapitre, j'examine les effets à court terme de l'exposition à la pollution de l'air ambiant sur l'utilisation et les coûts des soins de santé.
    Keywords: Fixed effects model,Life-cycle events,Health effects,Air pollution,Modèle à effets fixes,Evènements du cycle de vie,Effets sur la santé,Pollution de l'air
    Date: 2021–10–12
  45. By: Westlund, Hans (Royal Institute of Technology); Wilhelmsson, Mats (Department of Real Estate and Construction Management, Royal Institute of Technology)
    Abstract: Local negative externalities of an establishment of wind turbines have been documented in research; often with the help of the hedonic methodology and property values. We use mixed methods including hedonic methodology, propensity score matching, and the difference-in-difference approach to estimate causal effects, using almost 600,000 real estate transactions in Sweden from 2005 to 2018. The results indicate that we can reject the hypothesis that proximity to wind turbines does not impact property values, and this impact is relatively strong and varies over time and geographic region. Difference-in-difference with matching confirms estimates in the hedonic price equation studies. Furthermore, there is no indication of pre-event differences in house price outcomes based on distance from new wind turbines. Depending on the region, the total negative capitalisation amounts to between 10 and 25 percent within 0–2 kilometres from the wind power plant. We apply these estimates to the total housing stock in three different potential future development areas. Although effects per property are relatively marginal, the total effects of a wind farm establishment will be significant if they are located in densely populated areas.
    Keywords: wind turbine; capitalisation effect; regional; difference-in-difference; matching; property values
    JEL: C21 Q51 R30
    Date: 2022–06–21
  46. By: Devina Lakhtakia (Department of Economics and Finance, University of Guelph, Guelph ON Canada); Ross McKitrick (Department of Economics and Finance, University of Guelph, Guelph ON Canada)
    Abstract: Many studies have been undertaken to quantify the economic costs of climate change. However, while climate data is measured at a grid cell level, economic data are measured at the national level. In order to form correct damage estimates researchers must reconcile the two. Aggregating climate data up to the national level has been the more common approach but results are sensitive to how the averaging is done and the averaging process itself can bias the results. An alternative approach has been to project economic data down to the grid cell level. Nordhaus (2006) developed the G-Econ database to do this, but while it provides considerable spatial detail it provides only four quinquennial observations per cell from 1990 to 2005. We develop herein a model to predict within-grid cell economic activity using national, regional and local economic activity. The latter is measured using a unique dataset showing annual fight volumes at hundreds of urban and rural airports worldwide from 1976 to 2010. We show that the model has a high level of explanatory power and can be used in an iterative algorithm to infill and extrapolate the G-Econ data base to provide annual observations for grid cells in approximately 150 countries over the 1976 to 2010 interval. We supplement this with satellite nightlight data which provides even more spatial detail but over a shorter time frame.
    Keywords: Gross cell product, climate change, economic growth
    JEL: Q54 Q56 R11
    Date: 2022

This nep-ene issue is ©2022 by Roger Fouquet. It is provided as is without any express or implied warranty. It may be freely redistributed in whole or in part for any purpose. If distributed in part, please include this notice.
General information on the NEP project can be found at For comments please write to the director of NEP, Marco Novarese at <>. Put “NEP” in the subject, otherwise your mail may be rejected.
NEP’s infrastructure is sponsored by the School of Economics and Finance of Massey University in New Zealand.