nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒08‒08
48 papers chosen by
Roger Fouquet
London School of Economics

  1. Clustering environmental performances, energy efficiency and clean energy patterns: a comparative static approach across EU Countries By Marco Quatrosi
  2. Applying Small-Scale Liquefied Natural Gas Supply Chain by Fluvial Transport in the Isolated Systems: The Case Study of Amazonas, Brazil By Drielli Peyerl; Celso da Silveira Cachola; Victor Harano Alves; Marcella Mondragon; Sabrina Fernandes Macedo; Xavier Guichet; Edmilson Moutinho dos Santos
  3. Gas demand in times of crisis. The response of German households and industry to the 2021/22 energy crisis By Ruhnau, Oliver; Stiewe, Clemens; Muessel, Jarusch; Hirth, Lion
  4. Charging the macroeconomy with an energy sector: an agent-based model By Emanuele Ciola; Enrico Turco; Andrea Gurgone; Davide Bazzana; Sergio Vergalli; Francesco Menoncin
  5. From carbon pricing to climate clubs: How to support global climate policy coordination towards climate neutrality By Elkerbout, Milan; Bryhn, Julie; Righetti, Edoardo; Chapman, Francesca
  6. The Energy Transition Amidst Global Uncertainties: A Focus on Critical Minerals By Rim Berahab
  7. Socio-economic and environmental impact of intended decarbonisation policies in the East Asian region By Yuventus Effendi; Budy P. Resosudarmo
  8. Carbon removals on the road to net zero: Exploring EU policy options for negative emissions By Elkerbout, Milan; Bryhn, Julie
  9. Towards An Inclusive Energy Transition Beyond Coal – A comparison of just transition policies away from coal between China, the EU and the US By Xinqing Lu; Erpu Zhu; Loyle Campbell; Manfred Hafner; Michel Noussan; Pier Paolo Raimondi
  10. The Energy Transition and the Value of Capacity Remuneration Mechanisms By Cinzia Bonaldo; Fulvio Fontini; Michele Moretto
  11. Can New Light Rail Reduce Personal Vehicle Carbon Emissions? A Before-After, Experimental-Control Evaluation in Los Angeles By Marlon G. Boarnet; Xize Wang; Douglas Houston
  12. Fighting climate change: International attitudes toward climate policies By Antoine Dechezleprêtre; Adrien Fabre; Tobias Kruse; Bluebery Planterose; Ana Sanchez Chico; Stefanie Stantcheva
  13. Techno-economical modelling of a power-to-gas system for plant configuration evaluation in a local context By Corey Duncan; Robin Roche; Samir Jemei; Marie-Cécile Péra
  14. Low-carbon technologies and Russian imports: How far can recycling reduce the EU's raw materials dependency? By Rizos, Vasileios; Righetti, Edoardo
  15. Lightening the Path to Financial Development: The Power of Electricity By Pan, Lei; Dwumfour, Richard Adjei; Kheng, Veasna
  16. Uncharted Waters: Effects of Maritime Emission Regulation By Jamie Hansen-Lewis; Michelle M. Marcus
  17. PIB per cápita y emisiones de gases de efecto invernadero en Europa By Rupérez Calavera, Germán; Molina, Jose Alberto
  18. Impacto en el precio de la energía eléctrica en Colombia debido a la incorporación de fuentes no convencionales de energía renovable By Carlos David Hidalgo Bastidas
  19. Towards Inclusive Green Growth in Africa: Critical energy efficiency synergies and governance thresholds By Isaac K. Ofori; Emmanuel Gbolonyo; Nathanael Ojong
  20. Reducing US Biofuels Requirements Mitigates Short-term Impacts of Global Population and Income Growth on Agricultural Environmental Outcomes By David R. Johnson; Nathan B. Geldner; Jing Liu; Uris Lantz Baldos; Thomas Hertel
  21. CO2 Emission and Trade Policy in Agricultural and Food products By Raimondi, Valentina; Curzi, Daniele; Lucarno, Riccardo; Olper, Alessandro
  22. Hard facts and envIRONmental impacts: An overview of the global iron and steel sector By Küblböck, Karin; Tröster, Bernhard; Eigner, Michael
  23. Commodity markets dynamics: What do cross-commodities over different nearest-to-maturities tell us? By Amine Amar; Stéphane Goutte; Mohammad Isleimeyyeh; Ramzi Benkraiem
  24. How Eurostat can assist CO2 assessment in small island developing states: a post-Covid estimation of the Seychelles carbon footprint By Patrice Guillotreau; Kevin Bistoquet
  25. Forecasting macroeconomic indicators for Eurozone and Greece: How useful are the oil price assumptions? By George Filis; Stavros Degiannakis; Zacharias Bragoudakis
  26. Innovation Begets Innovation and Concentration: The Case of Upstream Oil & Gas in the North Sea By Janssen, Aljoscha
  27. Measurement of carbon finance level and exploration of its influencing factors By Peng Zhang; Yuwei Zhang; Nuo Xu
  28. Green credit policy and total factor productivity: Evidence from Chinese listed companies By Shu Guo; ZhongXiang Zhang
  29. Equilibria in Network Constrained Energy Markets By Leonardo Massai; Giacomo Como; Fabio Fagnani
  30. Fat of the Land: Market Outlook for Low Carbon Intense Raw Materials from the Rendering Industry By Swisher, Kent
  31. The effect of gasoline prices on suburban housing values in China By Tong Zhang; Paul J. Burke
  32. Optimal tariff versus optimal sanction: The case of European gas imports from Russia By Gros, Daniel
  33. Can diet change meet climate targets? By Jacobs, Alec; Youngman, Tom
  34. Endogenous Technological Change in Power Markets By Mathias Mier; Jacqueline Adelowo; Valeriya Azarova
  35. The impact of agricultural subsidies on environmental pollution in the European Union By Balogh, Jeremias
  36. Some reflections on Indonesia and the resource curse By Hal Hill; Donny Pasaribu
  37. Influencia de la Renta de Recursos Naturales y la Inversión Extranjera en la Degradación Ambiental de Ecuador By Flores, Bryan; Alvarado, Rafael
  38. How Well Are Newly Sited K-12 Schools Incorporating Vehicle Miles Traveled Mitigation Measures? By Vincent, Jeffrey M. PhD; Maves, Sydney; Thomson, Amy
  39. Anatomy of Green Specialisation: Evidence from EU Production Data, 1995-2015 By Francesco Vona; Francesco Bontadini
  40. Effect of raw material substitution on the facility location decision under a carbon tax policy By Y. Mechouar; Vincent Hovelaque; C. Gaigné
  41. Is climate change time reversible? By Francesco Giancaterini; Alain Hecq; Claudio Morana
  42. Evaluación del costo de electrificación rural en Bolivia By Miguel Fernández Fuentes; Evelyn Cardozo R; Jaime Zambrana Vargas; Gabriela Peña; Sergio Balderrama; Claudia Sánchez; Alejandro Soto; Sylvain Quoilin
  43. Promoting and reporting on climate action carried out within the framework of the Low-Carbon Standard Clarifications and practical examples from the agricultural sector By Thomas Bonvillain; Claudine Foucherot; Valentin Bellassen
  44. Why and when coalitions split? An alternative analytical approach with an application to environmental agreements By Raouf Boucekkine; Carmen Camacho; Weihua Ruan; Benteng Zou
  45. The Impact of Ridehailing on Other Travel Modes and on Vehicle Dependency By Iogansen, Xiatian; Circella, Giovanni
  46. Industrial Decarbonization: Policy Pathwaysfor the Cement & Concrete Sector By Kendall, Alissa; Murphy, Colin
  47. “Co-construction” in Deliberative Democracy: Lessons from the French Citizens’ Convention for Climate By Louis-Gaëtan Giraudet; Bénédicte Apouey; Hazem Arab; Simon Baeckelandt; Philippe Begout; Nicolas Berghmans; Nathalie Blanc; Jean-yves Boulin; Eric Buge; Dimitri Courant; Amy Dahan; Adrien Fabre; Jean-Michel Fourniau; Maxime Gaborit; Laurence Granchamp; Hélène Guillemot; Laurent Jeanpierre; Hélène Landemore; Jean-François Laslier; Antonin Macé; Claire Mellier; Sylvain Mounier; Théophile Pénigaud; Ana Povoas; Christiane Rafidinarivo; Bernard Reber; Romane Rozencwajg; Philippe Stamenkovic; Selma Tilikete; Solène Tournus
  48. Industry Contracts, New Data Act and Digital Green Transition By Mattila, Juri; Seppälä, Timo; Bützow, Alexander; Hynönen, Kalle; Puittinen, Mika

  1. By: Marco Quatrosi (University of Ferrara – Department of Economics and Management (Ferrara, Italy);)
    Abstract: In the context of convergence of objectives among the single Member States within the European Union, environmental policy has always been considered one pivotal and necessary step towards a cohesive EU. Employing clustering techniques, this work identifies affinities in environmental performances (e.g., CO2 emissions), energy efficiency, and clean energy patterns for European countries. K-medoids clustering will be used for a cross-section of the total carbon dioxide emission in three reference years (2008, 2013, 2018). Data to feed the algorithm have been selected considering the well-established IPAT relationship as an analytical framework. After preliminary analysis, results highlighted the presence of persistent groups of countries over time with marked characteristics in terms of environmental performances, energy efficiency, and clean energy patterns. Considering the limitations of data employed and the potentialities of the methodological approach, this work could shed light on a new perspective of analysis in light of the harmonization path the EU has been undertaking since its foundation. These findings could better address policymakers in terms of convergence of environmental policy implementing new measures to promote low-carbon consumption and production patterns with a specific focus on energy efficiency (e.g., heating and cooling) and sustainable sources (e.g., nuclear power).
    Keywords: Q50; Q43; C38
    Date: 2022–07
  2. By: Drielli Peyerl (Institute of Energy and Environment, - USP - University of São Paulo); Celso da Silveira Cachola; Victor Harano Alves (USP - University of São Paulo); Marcella Mondragon (Institute of Energy and Environment, - USP - University of São Paulo); Sabrina Fernandes Macedo (Institute of Energy and Environment, - USP - University of São Paulo); Xavier Guichet (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Edmilson Moutinho dos Santos
    Abstract: There are currently several studies about the necessity of increasing access to sustainable electricity for isolated communities or in remote areas using alternative energy sources. There are about 212 energy grid isolated systems in Brazil, mainly concentrated in the North of the country, especially in the state of Amazonas, largely supplied by diesel power plants. The isolated systems in Amazonas present significant logistical challenges due primarily to the dependence on fluvial transport. The small-scale liquefied natural gas by fluvial transport can be an alternative to natural gas supply to remote areas and isolated systems and the non-dependence or construction of new pipelines. Based on this context, the work aims to evaluate the small-scale liquefied natural gas economic costs by fluvial transport to replace diesel oil with natural gas in power plants in the state of Amazonas. It then also analyses whether this substitution can significantly mitigate greenhouse gas emissions of the electricity sector at the local level. As a result, the use of natural gas in just a few scenarios elaborated from the case studies can provide energy security, decrease local emissions of CO2eq, and reduce the electricity cost to the final consumer.
    Keywords: Small-scale liquefied natural gas,Electricity sector,Economic model cost,Low-carbon economy,Fluvial transport,Isolated systems
    Date: 2022–06
  3. By: Ruhnau, Oliver; Stiewe, Clemens; Muessel, Jarusch; Hirth, Lion
    Abstract: Europe is in the midst of the most severe energy crisis in a generation, at the core of which is the continuously plummeting supply of Russian natural gas. With alternative supply options being limited, natural gas prices have surged. This paper empirically estimates the response of natural gas demand to the price increase, using data from Germany—the so far largest consumer of Russian natural gas. We identify the crisis response of small and large consumers separately, controlling for temperature, gas-fired power generation, and economic activity. For small consumers, including mostly households, we find a substantial demand reduction of 6% from March onwards—most likely due to political and ethical considerations after the start of Russia’s invasion of Ukraine. For industrial consumers, demand reductions started much earlier in August 2021, when wholesale prices for natural gas started to surge, with an average reduction of 11%. We conclude that voluntary industrial demand response has played a significant role in coping with the energy crisis so far.
    Keywords: Energy demand,Demand response,European energy crisis,Natural gas
    JEL: Q41
    Date: 2022
  4. By: Emanuele Ciola (Fondazione Eni Enrico Mattei and Università degli Studi di Brescia); Enrico Turco (Fondazione Eni Enrico Mattei and Università Cattolica del Sacro Cuore); Andrea Gurgone (Fondazione Eni Enrico Mattei and Università Cattolica del Sacro Cuore); Davide Bazzana (Fondazione Eni Enrico Mattei and Università degli Studi di Brescia); Sergio Vergalli (Fondazione Eni Enrico Mattei and Università degli Studi di Brescia); Francesco Menoncin (Fondazione Eni Enrico Mattei and Università degli Studi di Brescia)
    Abstract: The global energy crisis that began in fall 2021 and the following spike in energy price constitute a major challenge for the world economy which risks undermining the post-COVID-19 recovery. In this paper, we develop and validate a new macroeconomic agent-based model with an endogenous energy sector to analyse the role of energy in the functioning of a complex adaptive system and assess the effects of energy shocks on the economic dynamics. The economic system is populated by heterogeneous agents, i.e., households, firms and banks, who take optimal decision rules and interact in decentralized markets characterized by limited information. After calibrating the model on US quarterly macroeconomic data, we investigate the economic and distributional effects of different types of energy shocks, that is an exogenous increase in the price of natural resources such as oil or gas and a decrease in the energy firms' productivity. We find that whereas the two energy shocks entail similar effects at the aggreagate level, the distribution of gains and losses across sectors is largely driven by the subsequent impact on the relative energy price, which varies depending on the type of shock. Our results suggest that, in order to design effective measures in response to energy crises, policymakers need to carefully take into account the nature of energy shocks and the resulting distributional effects.
    Keywords: Energy Sector, Energy Shocks, Agent-Based Models, Macroeconomic Dynamics
    JEL: C63 O13 Q41 Q43
    Date: 2022–03
  5. By: Elkerbout, Milan; Bryhn, Julie; Righetti, Edoardo; Chapman, Francesca
    Abstract: Carbon pricing has been adopted as a key climate policy measure in an increasing number of jurisdictions. With much of the world moving towards net-zero targets since the entry into force of the Paris Agreement, carbon pricing instruments now operate in a different context for climate policy than when economists first proposed them. This report re-examines the theory of diverse models of carbon pricing, especially for industrial decarbonisation, where concerns about carbon leakage risk and competitiveness play an important role in the policy debate. The report reviews implications for the effectiveness of climate policy and the need to reach climate neutrality in other regions when adopting measures to mitigate the risk of carbon leakage. It then discusses the concept of climate clubs and the potential for more inclusive ways of cooperating on climate policy beyond just carbon pricing.
    Date: 2022–03
  6. By: Rim Berahab
    Abstract: Pursuing efforts to decarbonize economies and increase energy systems’ resilience is crucial to stay within global warming limits and fight the consequences of climate change, which are becoming increasingly acute. The transition to a net-zero economy will be commodityintensive and require significant quantities of critical minerals, defined as metals and nonmetals essential to high-tech sectors. As the shift to cleaner technologies progresses, supply of critical minerals for the energy transition will be challenged by the needs for large quantities. If supply does not meet demand, prices of these minerals could skyrocket, leading to a new type of vulnerability. Thus, the interdependence and price volatility that characterize hydrocarbon markets would not disappear entirely in a decarbonized world. Therefore, many prerequisites must be in place for minerals markets to function effectively, including credible and globally coordinated climate policy, high environmental, social, labor, and governance standards, and reduced export trade barriers. This would allow scaling-up of investment to sufficiently increase the supply of critical minerals while preventing the rising cost of low-carbon technologies, thus supporting the transition to clean energy.
    Date: 2022–05
  7. By: Yuventus Effendi; Budy P. Resosudarmo
    Abstract: Even though there has been strong evidence that global warming has negative impacts on an economy, global carbon emissions have been increasing. Carbon emissions in the East Asia region has also shown a similar trend. The governments in East Asia have not implemented effective decarbonisation policies, presumably because so far limited analysis of the socio-economic and environmental impacts of these policies has been undertaken. This paper analyses the socio-economic and environmental implications of intended decarbonisation in the East Asian region using a computable general equilibrium model that captures closed-linkages between the economy and climate change. The results show that the intended decarbonisation policy does not always reduce carbon emissions. Incorporating CCS technology into existing coal power plants and carbon tax implementation could reduce carbon emissions significantly in all countries in the region. However, supplementary fiscal policies might be needed to mitigate the possible negative economic impacts of these intended decarbonisation policies.
    Keywords: decarbonisation, climate change, East Asia, Computable General Equilibrium
    JEL: D58 H23 Q54
    Date: 2022
  8. By: Elkerbout, Milan; Bryhn, Julie
    Abstract: Negative emissions will be needed on an increased scale to meet the EU’s climate targets, in particular climate neutrality by 2050. This Policy Insight examines different policy options for the EU to support the deployment of negative emissions technologies. After presenting an overview of measures to support negative emissions around the world, the EU’s climate policy frameworks are reviewed from the perspective of (potentially) integrating negative emissions. This is followed by a review of specific policy measures to support negative emissions in the EU. The paper recommends a wide portfolio of policy measures over time, to account for technology differences and the changing demands of climate policy for different time horizons as climate neutrality approaches (followed by net-negative emissions thereafter). This Policy Insight builds on a scoping paper by CEPS (Elkerbout & Bryhn, 2021) that discussed the need for negative emissions more in detail, as well as various options for negative emissions technology.
    Date: 2022–03
  9. By: Xinqing Lu (Sciences Po, Paris School of International Affairs); Erpu Zhu (Sciences Po, Paris School of International Affairs); Loyle Campbell (Sciences Po, Paris School of International Affairs); Manfred Hafner (Fondazione Eni Enrico Mattei, Sciences Po, Paris School of International Affairs, The John Hopkins University, School of Advanced International Studies); Michel Noussan (Fondazione Eni Enrico Mattei, Sciences Po, Paris School of International Affairs); Pier Paolo Raimondi (Fondazione Eni Enrico Mattei, Istituto Affari Internazionali)
    Abstract: This paper compares different just transition pathways in China, the European Union and the United States of America by comparing the current state of the coal sector and just transition policies away from coal. How can social justice in the energy transition be achieved under different models of energy governance? Since these three blocs have only made some progress on just transition policies and legislations for workers and communities impacted by the coal phase down or phase out in recent years, there have not been many studies comparing them to each other. The analysis in this paper shows that while all three blocs work towards ensuring the integration of coal workers and coal communities into the clean economy in the process of coal reduction, their approaches to achieving a just transition differ in terms of policy frameworks, financing resources, specific measures and public participation. This paper is part of a series of FEEM working papers of comparison studies of China, the EU and the US in the field of climate and energy.
    Keywords: Energy Transition, Just Transition, Coal Phase Out, Inclusiveness, China, the European Union, the United States
    JEL: Q38 Q56 Q58
    Date: 2021–12
  10. By: Cinzia Bonaldo (Department of Management Engineering, University of Padua); Fulvio Fontini (Department of Economics and Management and Interdepartmental Centre "Giorgio Levi Cases" for Energy Economics and Technology, University of Padua); Michele Moretto (Department of Economics and Management, Interdepartmental Centre "Giorgio Levi Cases" for Energy Economics and Technology, University of Padua and Fondazione Eni Enrico Mattei (FEEM))
    Abstract: Capacity Remuneration Mechanisms (CRM) can be used in power markets to overtake market failures, reaching security of supply. However, investment in capacity is a dynamic process, that depends on the evolution of prices and costs overtime. In our paper we study the capacity remuneration value through a CRM depending on three possible different technologies that participate to the market: a Variable Renewable Energy (VRE) source; a thermal efficient plant (i.e. Combine Cycle Gas Turbine) and a brown plant (i.e. coal). We shall see that these three types of capacities can be framed by means of a common theoretical framework, whose level of complexity increases as the uncertainty rises, moving from the simplest scheme (VRE technology) to the most complex one (coal power plant). For these different technological provisions, we consider how to evaluate them focusing on their investment value by adopting a stochastic approach; we first provide a theoretical framework and then sensitivity analysis and calibration results. We show that for all three technology considered the effect of the CRM is to cap the firm revenues and as consequence it decreases their value.
    Keywords: energy transition, capacity remuneration mechanism, price cap, renewable energies, investment value
    JEL: Q40 C60 D80
    Date: 2022–07
  11. By: Marlon G. Boarnet (University of Southern California); Xize Wang (University of Southern California); Douglas Houston (University of California, Irvine)
    Abstract: This paper uses a before-after, experimental-control group method to evaluate the impacts of the newly opened Expo light rail transit line in Los Angeles on personal vehicle greenhouse gas (GHG) emissions. We applied the California Air Resources Board's EMFAC 2011 emission model to estimate the amount of daily average CO2 emissions from personal vehicle travel for 160 households across two waves, before and after the light rail opened. The 160 households were part of an experimental-ccontrol group research design. Approximately half of the households live within a half-mile of new Expo light rail stations (the experimental group) and the balance of the sampled households live beyond a half-mile from Expo light rail stations (the control group). Households tracked odometer mileage for all household vehicles for seven days in two sample waves, before the Expo Line opened (fall, 2011) and after the Expo Line opened (fall, 2012). Our analysis indicates that opening the Expo Line had a statistically significant impact on average daily CO2 emissions from motor vehicles. We found that the CO2 emission of households who reside within a half-mile of an Expo Line station was 27.17 percent smaller than those living more than a half-mile from a station after the opening of the light rail, while no significant difference exists before the opening. A difference-in-difference model suggests that the opening of the Expo Line is associated with 3,145 g less of household vehicle CO2 emissions per day as a treatment effect. A sensitivity analysis indicates that the emission reduction effect is also present when the experimental group of households is redefined to be those living within a kilometer from the new light rail stations.
    Date: 2022–06
  12. By: Antoine Dechezleprêtre; Adrien Fabre; Tobias Kruse; Bluebery Planterose; Ana Sanchez Chico; Stefanie Stantcheva
    Abstract: Using new surveys on more than 40 000 respondents in twenty countries that account for 72% of global CO2 emissions, we study the understanding of and attitudes toward climate change and climate policies. We show that, across countries, support for climate policies hinges on three key factors: the perceived effectiveness of the policies in reducing emissions, their perceived distributional impacts on lower-income households (inequality concerns), and their own household’s gains and losses. We also show that information that specifically addresses these key concerns can substantially increase the support for climate policies in many countries. Explaining how policies work and who can benefit from them is critical to foster policy support. Simply making people more worried about climate change is not an effective strategy to foster policy support. Furthermore, we identify several socioeconomic and lifestyle factors – most notably education, political leanings, car usage, and availability of public transportation – that are significantly correlated with both policy views and overall reasoning and beliefs about climate policies. Yet, it is difficult to predict beliefs or policy views based on these characteristics only.
    Keywords: carbon tax, climate change, climate policies, experiment, perceptions, survey
    JEL: D78 H23 Q54 Q58 P48
    Date: 2022–07–12
  13. By: Corey Duncan (FEMTO-ST - Franche-Comté Électronique Mécanique, Thermique et Optique - Sciences et Technologies (UMR 6174) - UTBM - Université de Technologie de Belfort-Montbeliard - ENSMM - Ecole Nationale Supérieure de Mécanique et des Microtechniques - CNRS - Centre National de la Recherche Scientifique - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE]); Robin Roche (FEMTO-ST - Franche-Comté Électronique Mécanique, Thermique et Optique - Sciences et Technologies (UMR 6174) - UTBM - Université de Technologie de Belfort-Montbeliard - ENSMM - Ecole Nationale Supérieure de Mécanique et des Microtechniques - CNRS - Centre National de la Recherche Scientifique - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE]); Samir Jemei (FEMTO-ST - Franche-Comté Électronique Mécanique, Thermique et Optique - Sciences et Technologies (UMR 6174) - UTBM - Université de Technologie de Belfort-Montbeliard - ENSMM - Ecole Nationale Supérieure de Mécanique et des Microtechniques - CNRS - Centre National de la Recherche Scientifique - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE]); Marie-Cécile Péra (FEMTO-ST - Franche-Comté Électronique Mécanique, Thermique et Optique - Sciences et Technologies (UMR 6174) - UTBM - Université de Technologie de Belfort-Montbeliard - ENSMM - Ecole Nationale Supérieure de Mécanique et des Microtechniques - CNRS - Centre National de la Recherche Scientifique - UFC - Université de Franche-Comté - UBFC - Université Bourgogne Franche-Comté [COMUE])
    Abstract: Decarbonization of the European energy networks is critical to meet Commission targets in the coming decades. The presented study aims to contribute to this by analysing one of the proposed solutions: power-to-gas. A technoeconomic model is created for the purposes of evaluating specific projects on their feasibility in terms of local constraints and opportunities, using a current project as a template for model generation and analysing different possible configurations in 8 operational scenarios. Five metrics were used for scenario analysis: levelized cost of methane, minimum selling price, operational hours, hydrogen tank size and capital cost. The results from the analysis indicate that, in terms of the stated project, synthetic natural gas production and grid injection along with on-site mobility applications provide the best economical result. However, selling prices of synthetic natural gas obtained are one magnitude higher than current natural gas prices, indicating government support is required for further development. Future projections of electrolyser efficiency and equipment capital costs will greatly reduce production costs, giving promise for feasible business cases in the coming years.
    Keywords: Power-to-gas,System modelling,Techno-economical analysis,Synthetic natural gas
    Date: 2022
  14. By: Rizos, Vasileios; Righetti, Edoardo
    Abstract: The term ‘strategic autonomy’ denotes the political goal of building a self-reliant EU economy with limited exposure to supply disruptions, like those stemming from the Covid-19 crisis. Securing access to the non-energy minerals required for building a new industrial ecosystem consistent with the EU’s decarbonisation objectives is important to achieving this goal. Rising demand for these materials has created an arena for geopolitical competition. Moreover, the war in Ukraine has brought forward the need to take a closer look at the external supply of minerals, including from Russia, and potential risks involved. This Policy Insight first provides a brief overview of EU import dependency on raw materials and Russia’s share among EU sources of key supplies for low-carbon technologies. It then looks at prospects for meeting future material demands though circularity for three technologies, namely lithium-ion batteries, wind turbines and fuel cell electric vehicles. The analysis is based on two scenarios with different levels of ambition. They aim to give an indication of the scale of potential benefits that can be achieved through circularity and recycling approaches for components and materials used in these technologies. The estimates suggest that establishing collection and recycling facilities in the EU, through the appropriate policy frameworks in place, can contribute to meeting future EU material demands for them and reduce import dependency. Still, recycling alone will not suffice to cover the increasing material requirements. Other options will therefore need to be considered, including developing strategic partnerships and joint projects with resource-rich countries (also in light of efforts to cut economic ties with Russia). The EU will further need to source from its own mining reserves, seek improvements in material efficiency and foster material substitution options where possible.
    Date: 2022–04
  15. By: Pan, Lei; Dwumfour, Richard Adjei; Kheng, Veasna
    Abstract: This paper examines the impact of access to electricity on financial development. In doing so, we use plausibly exogenous variations in population density as an instrument for electrification rate. Using panel data for 44 countries in Sub-Saharan Africa over the period 2000 to 2018, the results suggest that more people having access to electricity can promote financial development. In addition, mobile phone and commercial bank branches diffusion serve as potential channels through which access to electricity affects financial development. The results have important implications for policies in overcoming barriers to electricity access.
    Keywords: Access to electricity; Financial development; Sub-Saharan Africa; Population density
    JEL: O16 Q43
    Date: 2022–06–12
  16. By: Jamie Hansen-Lewis; Michelle M. Marcus
    Abstract: Maritime shipping emits as much fine particulate matter as half of global road traffic. We are the first to measure the consequences of US maritime emissions standards on air quality, human health, racial exposure disparities, and behavior. The introduction of US maritime emissions control areas significantly decreased fine particulate matter, low birth weight, and infant mortality. Yet, only about half of the forecasted fine particulate matter abatement was achieved by the policy. We show evidence consistent with behavioral responses among ship operators, other polluters, and individuals that muted the policy's impact, but were not incorporated in ex-ante models.
    JEL: F18 I14 Q52 Q53 Q56
    Date: 2022–06
  17. By: Rupérez Calavera, Germán; Molina, Jose Alberto
    Abstract: A hot debate during the last years is going around the fact that our economies are based on natural resources consumption and up to which extend should we prioritize economic growth instead of sacrificing it in benefit of the environment. To analyze this problematic we will compare the greenhouse emissions of a variety of European countries with the GDP per capita of those countries to analyze the relationship among these two variables.
    Keywords: Emissions, GDP per capita, greenhouse gas, pollution, climate change, economic growth
    JEL: Q01 Q50
    Date: 2022–06–22
  18. By: Carlos David Hidalgo Bastidas
    Abstract: Este estudio evalúa el impacto en los precios de bolsa del mercado de energía eléctrica en Colombia producido por la incorporación de los proyectos de generación de energía renovable adjudicados en la subasta de largo plazo, efectuada por el Gobierno nacional en octubre de 2019. La evaluación se realiza de manera retrospectiva para el periodo 2007-2019, utilizando la metodología de reconstrucción de curva de oferta. Adicionalmente, se propone una metodología que permite hacer una evaluación prospectiva para el periodo 2020-2030, la cual combina un análisis inferencial para proyectar el precio de bolsa y el uso de redes neuronales para predecir el impacto futuro. Los resultados evidencian una disminución en el precio de bolsa de aproximadamente 5 % para el periodo 2007-2019 y 3,1 % para el periodo 2020-2030. Escenarios de mayor penetración de renovables muestran que una mayor incorporación de estos recursos produce un mayor impacto en el precio de bolsa. ***** This work explores the impact produced by the Non-conventional energy sources projects awarded in the long-term auction carried out by the National Government on the spot electricity prices in Colombia. To reach that goal, we use two different methodologies. The first methodology, the Spot Market Supply Curve Reconstruction, is used to perform a retrospective analysis for the 2007-2019 period. The methodology allows us to reconstruct the hourly spot prices based on the Merit Order Dispatch. We use the second methodology to perform a prospective analysis for the 2020-2030 period. For that, we propose a novel model that combines an inferential analysis to forecast the spot electricity price, and a neural network to predict the impact of the renewable resources. The results indicate a decrease of approximately 5% in spot electricity prices for the 2007-2019 period, and a decrease of 3.1% for the 2020-2030 prospective period of study. Additional scenarios with higher penetration of renewable resources produce a greater impact on the spot electricity prices.
    Keywords: fuentes de energía alternativa, energía eléctrica, reconstrucción de curva deoferta, subasta de contratación a largo plazo, obligatoriedad de compra de energía renovable
    Date: 2020–10–15
  19. 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: Africa, 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
  20. By: David R. Johnson; Nathan B. Geldner; Jing Liu; Uris Lantz Baldos; Thomas Hertel
    Abstract: Biobased energy, particularly corn starch-based ethanol and other liquid renewable fuels, are a major element of federal and state energy policies in the United States. These policies are motivated by energy security and climate change mitigation objectives, but corn ethanol does not substantially reduce greenhouse gas emissions when compared to petroleum-based fuels. Corn production also imposes substantial negative externalities (e.g., nitrogen leaching, higher food prices, water scarcity, and indirect land use change). In this paper, we utilize a partial equilibrium model of corn-soy production and trade to analyze the potential of reduced US demand for corn as a biobased energy feedstock to mitigate increases in nitrogen leaching, crop production and land use associated with growing global populations and income from 2020 to 2050. We estimate that a 23% demand reduction would sustain land use and nitrogen leaching below 2020 levels through the year 2025, and a 41% reduction would do so through 2030. Outcomes are similar across major watersheds where corn and soy are intensively farmed.
    Date: 2022–06
  21. By: Raimondi, Valentina; Curzi, Daniele; Lucarno, Riccardo; Olper, Alessandro
    Abstract: Agri-food system is one of the economic sectors most at risk from climate change, but it is also a significant contributor to it, with greenhouse gas emissions (GHG) from the food supply chain equal to one-third of the global anthropogenic total in 2018 (Tubiello et al. 2021). Specifically, crop and livestock production within the farm gate contributes more than 50% of the methane (CH4) and 75% of the nitrous oxide (N2O) emissions from human activity globally (FAO, 2020). This paper relies on the recent work of Shapiro (2021) that firstly analysed the nexus between pollution embodied in traded goods, against the actual structure of trade policy (tariffs or non-tariff measures-NTMs). In our contribution we focus on agricultural and food products, considering three main pollutants (CO2, CH4, N2O), with the aims of answering the following research question: are actual trade policies a tax or a subsidy to total CO2 (equivalent) emissions embedded in agri-food imported goods? Main findings suggest that for all the three pollutants investigated a negative implicit carbon tax is applied, i.e. on average countries applied an implicit subsidy on more pollutant imported goods. This estimated implicit subsidy to CO2 emissions imported in agri-food products tend to be higher when also the ad-valorem equivalent of non-tariff measures (NTMs) is accounted for. By investigating the country-group heterogeneity in the applied tax or subsidy to imported CO2, results show that the larger implicit subsidy is applied by the trade policy structure of European Union countries. Specifically, Western and Northern European countries have among the largest negative environmental biases in trade policy, while more polluting countries, like China, India, Russia, Brazil and Mexico, tend to apply smaller (implicit) subsidies.
    Keywords: International Relations/Trade, Environmental Economics and Policy, Agricultural and Food Policy
    Date: 2022–04
  22. By: Küblböck, Karin; Tröster, Bernhard; Eigner, Michael
    Abstract: This briefing paper provides an overview of t he global iron and steel sector. It describes the properties of iron ore and delineates the geographical distribution of deposits and trade flows. Further, it explains pricing mechanisms and addresses environmental impacts. Iron and steel are key materials for industrial production, with iron being used 20 times more than all other metals combined. While extraction of iron ore has almost tripled over the past twenty years, the iron and steel sector remains highly concentrated, with most iron ore extraction taking place in just a few countries, in particular in Australia and Brazil, which account for over half of all iron ore extraction. Indeed, more than two-thirds of the iron ore export market is controlled by only four companies. In terms of global steel production, China accounts for more than half of the market share. Iron ore is also mined in Austria, and significant quantities are imported for steel production, although there is a lack of transparency; Austria is the only country in the EU not to publish statistical data on its iron ore imports since 2018. Globally, iron and steel represent the larges t sector in terms of energy demands, CO 2 emissions and air pollution and are among the world's major water consumers. Prices of iron ore are highly volatile, which has major consequences for exporting and importing countries and makes planning for CO2 phase-out difficult.
    Keywords: iron ore,steel,trade flows,price volatility,China,Austria
    Date: 2022
  23. By: Amine Amar; Stéphane Goutte (SOURCE - SOUtenabilité et RésilenCE - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - IRD [France-Nord] - Institut de Recherche pour le Développement, PSB - Paris School of Business); Mohammad Isleimeyyeh; Ramzi Benkraiem (Audencia Business School)
    Abstract: In this paper we investigate cross-commodity futures markets connectedness over different nearest-to-maturities. We thus implement time and time-frequency estimations for two constructed baskets of commodities, classified based on common delivery months. Using daily data spanning the period 1995-2020, we provide a set of stylized facts on the extent to which commodity markets are integrated or segmented. More specifically, our results show that the total connectedness is broadly insensitive to maturity. However, after 2008 financial crisis, the connectedness among commodity futures prices increases when the maturity increases. Furthermore, the overall connectedness amplifies during crises periods compared to tranquil periods. Moreover, certain pairwise markets are comparatively highly linked such as crude oil and heating oil, wheat and corn, corn and soybean, and soybean and soybean oil. The results also demonstrate that crude oil and heating oil are net transmitters all the time and across maturities, while natural gas, gold, and wheat are net receivers all the time and across maturities. More interestingly, the frequency decomposition reveals that most of periods of high total connectedness are driven mostly by high frequency components, which may indicate that commodity markets process information rapidly, except for the COVID-19 crisis period where total connectedness has been driven by lower frequency components.
    Keywords: nearest-to-maturities,futures,precious metals,agricultural,energy,financialization,Cross-commodity integration,connectedness,COVID-19
    Date: 2022–05–19
  24. By: Patrice Guillotreau (UMR MARBEC - MARine Biodiversity Exploitation and Conservation - IRD - Institut de Recherche pour le Développement - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UM - Université de Montpellier - CNRS - Centre National de la Recherche Scientifique); Kevin Bistoquet (National Bureau of Statistics, Seychelles)
    Abstract: Small Island Developing States (SIDS) are particularly vulnerable to climate change and ought to pay attention to their own contribution through the CO2 emissions resulting from the domestic production and consumption levels. Although poorly responsible of the worldwide carbon emissions by the modest level of their domestic demand, they can nonetheless contribute to the problem because of the global demand for their exported commodities. However, the carbon footprint is hardly assessed by SIDS because of a lack of data about greenhouse gas emissions or national account statistics. Taking the opportunity of the Covid-19 pandemic and the resulting economic shock, an environmentally-extended input-output model based on Eurostat data on air emissions is used to disentangle the CO2 emissions embodied in the domestic production and international trade, respectively, and to clearly identify the origin of emissions by industry. Not surprisingly, the consumption-based carbon footprint of Seychelles is deemed lower (6.79 tCO2 per capita) than the production-based inventory (9.55 tCO2 p.c.) for this small open economy relying to a large extent on exports of canned tuna and tourism services, hence a decrease of carbon dioxide emissions (-16%) in 2020 because of the Covid-19 pandemic. Could it be the right time to re-frame the international specialization of Seychelles?
    Keywords: carbon footprint,air emission accounts,Environmentally-Extended Input-Output (EE-IO) model,Covid-19,Seychelles economy
    Date: 2022–04–04
  25. By: George Filis (University of Patras); Stavros Degiannakis (Bank of Greece); Zacharias Bragoudakis (Bank of Greece)
    Abstract: This study evaluates oil price forecasts based on their economic significance for macroeconomic predictions. More specifically, we first use the current state-of-the-art frameworks to forecast monthly oil prices and subsequently we use these forecasts, as oil price assumptions, to predict eurozone and Greek inflation rates and industrial production indices. The macroeconomic predictions are generated by means of regression-based models. We show that when we assess oil price forecasts, based on statistical loss functions, the MIDAS models, as well as the futures-based forecasts outperform those generated by the VAR and BVAR models. By contrast, in terms of their economic significance we show that none of the oil price forecasts are capable of providing predictive gains for the eurozone core inflation rate and the Greek industrial production index, whereas some gains are evident for the eurozone industrial production index and the Greek core inflation rate. However, in all cases the oil price forecasting models, including the random-walk, generate equal macroeconomic predictive accuracy. Thus, overall, we show that it is important to assess oil price forecasting frameworks based on the purpose that they are designed to serve, rather than based on their ability to predict oil prices per se.
    Keywords: Oil price forecasts; MIDAS; conditional forecasts; core inflation; industrial production
    JEL: C53 E27 E37 Q47
    Date: 2022–04
  26. By: Janssen, Aljoscha (Singapore Management University)
    Abstract: We investigate the effect of technology adoption on competition by leveraging a unique dataset on production, costs, and asset characteristics for North Sea upstream oil & gas companies. Relying on heterogeneity in the geological suitability of fields and a landmark decision of the Norwegian Supreme Court that increased the returns of capital investment in Norway relative to the UK, we show that technology adoption increases market concentration. Firms with prior technology-specific know-how specialize more in fields suitable for the same technology but also invest more in high-risk-high-return fields (e.g., ultra-deep recovery), diversifying their technology portfolio and ultimately gaining larger shares of the North Sea market. Our analyses illustrate how technology adoption can lead to market concentration both directly through specialization and indirectly via experimentation.
    Keywords: Innovation; Adoption; Market structure; Competition; Specialization; Experimentation; Upstream oil and gas markets; North Sea
    JEL: D40 O33 Q40
    Date: 2022–06–08
  27. By: Peng Zhang; Yuwei Zhang; Nuo Xu
    Abstract: Faced with increasingly severe environmental problems, carbon trading markets and related financial activities aiming at limiting carbon dioxide emissions are booming. Considering the complexity and urgency of carbon market, it is necessary to construct an effective evaluation index system. This paper selected carbon finance index as a composite indicator. Taking Beijing, Shanghai, and Guangdong as examples, we adopted the classic method of multiple criteria decision analysis (MCDA) to analyze the composite indicator. Potential impact factors were screened extensively and calculated through normalization, weighting by coefficient of variation and different aggregation methods. Under the measurement of Shannon-Spearman Measure, the method with the least loss of information was used to obtain the carbon finance index (CFI) of the pilot areas. Through panel model analysis, we found that company size, the number of patents per 10,000 people and the proportion of new energy generation were the factors with significant influence. Based on the research, corresponding suggestions were put forward for different market entities. Hopefully, this research will contribute to the steady development of the national carbon market.
    Date: 2022–05
  28. By: Shu Guo (Ma Yinchu School of Economics, Tianjin University and China Academy of Energy, Environmental and Industrial Economics); ZhongXiang Zhang (Ma Yinchu School of Economics, Tianjin University and China Academy of Energy, Environmental and Industrial Economics)
    Abstract: The green credit policy plays a vital role in promoting enterprise upgrading. Using a thirteen year panel data of listed companies in China (2007 2019), this study uses the difference in differences (DID) method to examine the effects of the Green Credit Guidelines in 2012 (GCG2012) on the firm level total factor productivity (TFP). Our results show that the GCG2012 significantly increases the TFP of companies in green credit restricted industries. This finding remains robust through employing the PSM-DID model, alternating the treatment group, changing the sample period, and controlling the effects of other environmental policies and financial crises. This effect is more pronounced for private enterprises, companies with worse debt paying ability, companies in highly competitive industries and companies in regions with higher financial liberalization. The impact mechanism test indicates that increasing the green innovation and reducing the agency costs (including green agency costs and traditional agency costs) are two possible channels to boost firm level TFP. Further analysis shows that the GCG2012 is effective not only for heavily polluting industries but also for light polluting industries, and that the GCG2012 can improve the economic performance of firms in green credit restricted industries. Overall, this study reveals the micro mechanisms behind the long term impact of the GCG2012 policy on firm level TFP, providing empirical evidence and policy suggestions for improving green credit policies and promoting green development.
    Keywords: Green credit policy, green finance, total factor productivity, PSM-DID model, China
    JEL: Q48 Q53 Q55 Q58 O13 P28 R11 H23
    Date: 2022–05
  29. By: Leonardo Massai; Giacomo Como; Fabio Fagnani
    Abstract: We study the equilibrium state of an energy market composed of producers who compete to supply energy to different markets and want to maximize their profits. The energy market is modeled by means of a graph that represents a constrained power network where nodes represent the markets and links are the physical lines with a finite capacity connecting them. Producers play a networked Cournot game on such a network together with a centralized authority, called market maker, that facilitates the trade between geographically separate markets via the constrained power network and aims to maximize a certain welfare function. We study existence of uniqueness of the Nash equilibria and prove a connection between capacity bottlenecks in the power network and the emergence of price differences between different markets that are separated by bottlenecked lines.
    Date: 2022–06
  30. By: Swisher, Kent
    Keywords: Agribusiness
    Date: 2022–02
  31. By: Tong Zhang; Paul J. Burke
    Abstract: By raising road transportation costs, an increase in gasoline prices should be expected to reduce housing demand in locations further from the central business district (CBD) relative to inner-city locations. This study uses a monthly real estate area-level dataset for 19 large cities in China over 2010–2018 to investigate the impact of gasoline prices on intra-city spatial differentials in housing prices. The findings suggest that higher gasoline prices on average lead to a relative decline in housing prices in outer suburbs, with a 1% increase in gasoline prices on average leading to a 0.004% relative reduction in home values for every additional kilometer from the CBD. The effect is larger in cities that have higher automobile ownership rates and that are less densely populated. The results are consistent with a conclusion that the rise of electric vehicles, autonomous vehicles, and working from home is likely to contribute to a lowering of geographical price differentials within Chinese cities over time.
    Keywords: gasoline price; housing price; transportation cost.
    JEL: R31 Q41 Q43
    Date: 2022
  32. By: Gros, Daniel
    Abstract: Europe has set itself the aim of reducing its dependency on Russian gas imports. This paper provides an economic analysis of a tariff on imports of natural gas into the EU which would help achieve this goal. The starting point is Gazprom’s monopoly on exports of gas from Russia and pricing power on the European market. Standard trade theory implies that a tariff on Russian gas imports would be beneficial for Europe even on purely economic grounds because it would lower the demand curve Gazprom faces and induce it to lower prices. The standard linear model used here takes into account the availability of Liquified natural gas (LNG) supplies and confirms the general rule that it pays to levy a tariff on imports from a foreign monopoly. It yields the following numerical results: - Only one half of the tariff would result in higher prices for European consumers and the tariff revenue would be more than sufficient to compensate them for this loss. - The tariff, which maximises Europe’s welfare, would be close to one third of the price at which Europe would stop importing from Russia. This would cut Gazprom’s net revenues by approximately half. - If the tariff is used as a sanctions weapon to reduce revenues for Russia, the tariff should be higher (around 60 %) and would cut Gazprom’s revenues to one fourth of the free trade level. The overall conclusion is thus that an EU import tariff on Russian gas would have a major impact on Russia’s earning from gas exports and would certainly improve the European terms of trade.
    Date: 2022–05
  33. By: Jacobs, Alec; Youngman, Tom
    Abstract: Ruminant livestock produce more than half of the UK’s agricultural greenhouse gas emissions, leading the Climate Change Committee to call for diets to move away from meat and dairy. We run simulations in Defra’s partial equilibrium model of the UK’s agricultural economy to evaluate how diet change might affect UK herd sizes and associated greenhouse gas emissions. We also simulate carbon tax and tariff policy scenarios to compare how diet shifts would interact with a widely advocated policy measure. We find unilateral diet change in the UK alone more likely to provoke a decrease in imports (and potentially an increase in exports) than bring about a significant reduction in UK ruminant herds and associated UK territorial greenhouse gas emissions. Conversely, our simulations find a large carbon tax imposed on domestic farmers alone reducing territorial emissions significantly, but only by leading to higher imports (and associated emissions) from overseas as UK consumption remains inelastic. Our modelling indicates that meeting the UK’s agricultural greenhouse gas mitigation goals requires holistic action on the consumption and production side of the economy, with the UK facing unintended consequences in its agri-food trade balance if its climate ambition is not in harmony with its trade policy.
    Keywords: Environmental Economics and Policy, Livestock Production/Industries, International Relations/Trade
    Date: 2022–04
  34. By: Mathias Mier; Jacqueline Adelowo; Valeriya Azarova
    Abstract: Decarbonization requires the transformation of power markets towards renewable energies and investment costs are decisive for the deployed technologies. Exogenous cost assumptions cannot fully reflect the underlying dynamics of technological change. We implement divergent learning-by-doing specifications in a multi-region power market model by means of mixed-integer programming to approximate non-linear investment costs. We consider European learning, regional learning, and three different ways to depreciate experience stocks within the European learning metric: perfect recall, continuous forgetting, and lifetime forgetting. Learning generally yields earlier investments. European learning fosters the deployment of solar PV and wind onshore, whereas regional learning leads to more wind offshore deployment in regions with high wind offshore quality. Perfect recall fosters solar PV and wind onshore expansion, whereas lifetime forgetting fosters wind offshore usage. Results for continuous forgetting are in between those of perfect recall and lifetime forgetting. Generally, learning leads to the earlier deployment of learning technologies but regional patterns are different across learning specifications and also deviate significantly from this general pattern of preponing investments.
    Keywords: Endogenous technological change, learning-by-doing, forgetting, renewable energies, power market model, decarbonization
    JEL: C61 H21 H23 H43 L94
    Date: 2022
  35. By: Balogh, Jeremias
    Abstract: The agricultural production in the European Union (EU) accounted for 40 % of the total land area of the EU Member States, providing farming opportunities for 10 million workers. In the EU, agriculture is also responsible for a significant share of greenhouse gas emissions. The research investigates how the evaluation of agricultural subsidies under the Common Agricultural Policy (CAP) can contribute to agricultural sustainability in the European Union. The research question addresses the implementation of climate agreements into CAP regulations and the influence of agricultural subsidies on greenhouse gas emissions. Panel data econometrics is employed to analyse the effectiveness of EU subsidies on diminishing agricultural emissions between 2004 and 2019. The results suggest that some agri-environmental measures included in the Common Agricultural Policy served to cut GHG emissions by increasing the area of organic farming. The expansion of organic farming and CAP payments on rural development contributed significantly to CO2 emissions reduction in the EU. On the other hand, CAP direct payments stimulated GHG emissions. Regarding CAP reforms, the Health Check carried out in 2009 helped reduce while Ciolos reform in 2013 stimulated GHG emission for a period analysed. The results draw attention to the need for action to curb EU agricultural emissions by reforming or restructuring the system of direct agricultural subsidies.
    Keywords: Environmental Economics and Policy, Agricultural and Food Policy, Public Economics
    Date: 2022–04
  36. By: Hal Hill; Donny Pasaribu
    Abstract: Natural resources – blessing or curse? Indonesia provides an excellent case study for an examination of this question. It is a major commodity exporter; the fourth most populous country in the world; and the world’s largest archipelagic state with huge mineral, forest and maritime resources. Indonesia also has three distinctive features that are particularly relevant for such a study. First, with the exception of the Asian financial and pandemic crises it has had at least moderately strong economic performance for the past half century. This distinguishes it from the majority of resource-rich developing countries, and therefore there are lessons to be learnt from its management of these boom and bust episodes, particularly the latter. Second, Indonesia has experienced two rather different resource booms: the first based mainly on oil and gas in the 1970s and the second based primarily on coal, palm oil and gas over the years 2005-11. The economic, social and environmental impacts of these two booms have differed significantly. Third, the country experienced major regime change in 1998-99, from the centralized, authoritarian Soeharto regime 1966-98, which presided over the first boom, to the subsequent democratic, decentralized regime during the second boom. The very different political and institutional arrangements had important implications for the management of the boom and its distributional impacts. We examine these issues in comparative context, employing as reference points two very large natural resource exporters, Brazil and Nigeria, and Malaysia, a smaller, more dynamic East Asian comparator.
    Keywords: Indonesia, resource curse, natural resources, political economy
    JEL: Q33 O11 N15 N55
    Date: 2022
  37. By: Flores, Bryan; Alvarado, Rafael
    Abstract: In Ecuador, the income obtained from the exploitation of natural resources, especially hydrocarbons and minerals, have been consolidated as the basis of economic development, in turn, the lack of economic and technological resources, as many of the developing countries development, have caused these activities to be concessioner to foreign companies, causing a conflict of interest in which the economic benefit has exceeded environmental sustainability. For this reason, the general objective of this research was to evaluate the impact of rent from natural resources and foreign direct investment on environmental degradation in Ecuador during the period 1975-2019, through an econometric study in order to propose policies. that mitigate environmental degradation and promote environmental sustainability. The data was obtained from the World Development Indicators (2021) and time series econometric techniques were used through the implementation of Vector Autoregressive (VAR), Error Correction (VEC) models and the Granger causality test. According to the results obtained, the presence of a short- and long-term equilibrium relationship between total income from natural resources, foreign direct investment and CO2 emissions was verified. Therefore, policies must be aimed at strengthening environmental legislation and providing an optimal environment for business development based on the implementation of environmentally friendly technologies that guarantee the sustainability of resources.
    Keywords: CO2 emissions, Natural resources, Foreign Direct Investment
    JEL: F21 Q34 Q53
    Date: 2022–03–09
  38. By: Vincent, Jeffrey M. PhD; Maves, Sydney; Thomson, Amy
    Abstract: In response to California law (SB 743, Chapter No. 386, Statutes of 2013), school districts are encouraged to use vehicle miles traveled (VMT) as criteria when evaluating the transportation impacts of new school construction, and identify feasible mitigation measures that eliminate or substantially reduce VMT generated by the new construction. To better understand the implications of this new law on school siting decisions, researchers at UC Berkeley analyzed 301 new schools constructed between 2008 and 2018 with respect to four VMT mitigation measures identified by the Governor’s Office of Planning and Research (OPR) known to minimize VMT – proximity to high quality transit areas (HQTA), proximity to roads with bicycle facilities, proximity to electric vehicle (EV) charging stations, and walkability scores.
    Keywords: Social and Behavioral Sciences
    Date: 2022–07–01
  39. By: Francesco Vona (University of Milan, Department of Environmental Science and Policy, Fondazione Eni Enrico Mattei (FEEM) and OFCE Sciences-Po); Francesco Bontadini (OFCE Sciences-Po, LUISS Guido Carli University and SPRU – University of Sussex)
    Abstract: We study green specialisation across EU countries and detailed 4-digit industrial sectors over the period of 1995-2015 by harmonizing product-level data (PRODCOM). We propose a new list of green goods that refines lists proposed by international organizations by excluding goods with double usage. Our analysis reveals important structural characteristics of green specialisation in the manufacturing sector. First, green production is highly concentrated, with 13 out of 119 4-digit industries, which are high-tech and account for nearly 95% of the total. Second, green and polluting productions do not occur in the same sectors, and countries specialise in either green or brown sectors. Third, our econometric analysis identifies three key drivers of green specialisation: (i) first-mover advantage and high persistence of green specialisation, (ii) complementarity with non-green capabilities and (iii) the degree of diversification of green capabilities. Importantly, once we control for these drivers, environmental policies are not anymore positively associated with green specialisation.
    Keywords: Green goods, green specialisation, environmental policies, complementarity, path dependency
    JEL: Q55 L60 O44
    Date: 2022–06
  40. By: Y. Mechouar (RITM - Réseaux Innovation Territoires et Mondialisation - Université Paris-Saclay); Vincent Hovelaque (CREM - Centre de recherche en économie et management - CNRS - Centre National de la Recherche Scientifique - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes - UNICAEN - Université de Caen Normandie - NU - Normandie Université, IGR-IAE Rennes - Institut de Gestion de Rennes - Institut d'Administration des Entreprises - Rennes - UR1 - Université de Rennes 1 - UNIV-RENNES - Université de Rennes); C. Gaigné (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement)
    Abstract: Current environmental issues that have been made unavoidable by environmental regulations have become new constraints for industrial companies. In this paper, we consider a joint production-location problem for supply chains under a carbon tax policy on transport-related carbon emissions. We characterize the relationship that links the production level to the input quantities by considering a production function, namely, constant elasticity of substitution (CES) function. Our study focuses on the potential impact of increased transportation costs due to carbon taxation on the joint production-location decision. We find that the location-production configuration differs according to the degree of substitutability among the raw material quantities. More importantly, we observe that a higher carbon tax is more likely to cause a significant jump in firm location choice and a considerable change in production decisions when a firm has high flexibility in its ability to substitute among input quantities.
    Keywords: Facility location,Raw material substitution,Environmental issues,Carbon tax
    Date: 2022
  41. By: Francesco Giancaterini; Alain Hecq; Claudio Morana
    Abstract: This paper, exploiting the properties of mixed causal and noncausal models, proposes strategies to detect time reversibility in stationary stochastic processes. We show that they can also be used for nonstationary processes when the trend component is computed using the Hodrick-Prescott filter characterized by a time-reversible closed-form solution. We then establish a linkage between the concept of environmental tipping point and the statistical property of time irreversibility and investigate nine climate indicators. While we detect time irreversibility in GHG emissions, global temperatures and fundamental natural oscillations do not show this feature. Under a constructive view, our findings then give hope that correction policies might still help avoid the worst consequences of climate change.
    Keywords: mixed causal and noncausal models, time reversibility, global warming, generalized Student's t-distribution, Hodrick-Prescott filter.
    JEL: C22
    Date: 2022–05
  42. By: Miguel Fernández Fuentes (Energética); Evelyn Cardozo R (Universidad Mayor de San Simón); Jaime Zambrana Vargas (Universidad Mayor de San Simón); Gabriela Peña (Universidad Mayor de San Simón); Sergio Balderrama (Universidad Mayor de San Simón); Claudia Sánchez (Universidad Mayor de San Simón); Alejandro Soto (Universidad Mayor de San Simón); Sylvain Quoilin (Katholieke Universiteit Leuven)
    Abstract: El presente proyecto se enfoca en proponer una solución que promueva el logro del objetivo 7 del desarrollo sostenible: acceso a energía asequible y no contaminante (SDG7) en Bolivia. Uno de los principales problemas en el país con respecto al tema energético es el acceso universal a energía moderna (i.e. electricidad, cocinas limpias) y la falta de políticas públicas que resuelvan el mismo. La solución planteada por el proyecto está orientada a encontrar el costo total de provisión de energía eléctrica en todas las poblaciones de Bolivia, además de analizar los factores socioeconómicos más relevantes al momento de realizar la planificación de la cobertura total de electricidad en el país. El Proyecto tiene dos etapas importantes, la primera consiste en la recolección de datos y análisis de la demanda, así como de la percepción/visión de las poblaciones en relación al uso de la energía; la segunda se centra en el análisis de la información y en la generación de resultados.
    Keywords: Energy, Environment, Bolivia,
    JEL: O13 P18 L94
    Date: 2020–08
  43. By: Thomas Bonvillain (I4CE - Institut de l’Économie pour le Climat); Claudine Foucherot (I4CE - Institut de l’Économie pour le Climat); Valentin Bellassen (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - AgroSup Dijon - Institut National Supérieur des Sciences Agronomiques, de l'Alimentation et de l'Environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: French agriculture lacks the capacity to single-handedly address the many challenges it faces. Its necessary transformation can only proceed if additional external funding is made available. Carbon certification frameworks, by providing guarantees on the veracity of emission reductions (ER) and the additionality of projects, are one of the tools to provide new financial resources to the sector. France has had its own carbon certification framework since 2018, overseen by the Ministry of the Ecological Transition: the French Low-Carbon Standard (Label Bas-Carbone, LBC)1. The development of sectoral methodologies is progressing rapidly and projects have already received the standard, but it has become apparent that several clarifications are necessary to facilitate the financing of agricultural projects by agribusinesses. A recurring question asked by potential funders is "What am I allowed to say and do when financing certified low-carbon projects?" And underlying this question are many others: are there double counting problems surrounding voluntary credits and State inventories? Is there a need to distinguish between ER from inside or outside the value chain in the context of a carbon offset approach? What are the best methods of project communication when several funders are involved? These questions are not specific to the LBC, as they concern the functioning of all voluntary carbon markets, and nor are they new. However, they remain topical and are even the subject of numerous international debates, although no consensus has been reached. Paradoxically, these discussions, held in the pursuit of rigour and raising ambitions, are delaying the financing of projects. In the short term it is therefore necessary to provide operational answers to funders, at least in the specific LBC context. In France, these issues have mainly been raised by the agri-food industries, which is why this document focuses specifically on this sector. Taking this into account, the aim of this study is to provide practical answers to agri-food companies that are wondering what they are entitled to say or do when financing projects within the LBC framework. Through an analysis of five project funding case types, we make recommendations on the structuring of the carbon assessment and reporting with which financing companies can engage, whether through a carbon offsetting approach or a contribution to the climate effort. These technical recommendations made for each case type stem from three general recommendations: when financing low-carbon projects, one must seek to be cooperative, pragmatic and transparent. Cooperation Neither the private sector nor the State alone has the means to finance all the projects needed to achieve the objectives that France has set itself in the framework of the Paris Agreement. Partnerships between value chains, between industrial sectors, between territories, between the private and public sectors, should be facilitated and encouraged to finance as many projects as possible. Presenting oneself as the sole beneficiary of a financed project in terms of carbon accounting is often misleading and can be detrimental to project development. In the carbon field, everyone benefits from the actions of others. So much the better if "collateral benefits", such as Scope 3 reductions for a third party, occur during a project's implementation. But beware: only funders can claim responsibility for ER. Pragmatism Guidelines cannot be based on rules that are unverifiable in practice, as we see for the issue of double counting between Scope 3 carbon reporting and voluntary credits. It must be remembered that the framework within which companies act on climate change inherently involves a degree of uncertainty, which is limited and controlled, but nevertheless real. Perfect is the enemy of good: the search for rigour and high standards must not be at the expense of project funding. Transparency Transparency is the most important point and the counterpart of the first two. Being transparent about actions undertaken is the best guarantee of credibility regarding climate impact. Agribusinesses must first make a clear distinction between their carbon reporting on the one hand, and the ER purchased or financed by the organisation on the other. Furthermore, they should report not only in tCO2e, the commonly used indicator, but also in euros, to show the amount spent on project financing. This provides additional information. Ideally, both figures should be provided, and not one or the other. Indeed, a contribution made at a carbon credit price of 5 euros, for example, is not equal to one with a credit price of 100 euros. Finally, a funder's communication should not anticipate the certification of ER. As soon as funding has been committed, it is possible to report in terms of euros. However, it is not until ER have been acknowledged by the Ministry that the volume of ER can be made public.
    Keywords: Carbon offsetting,Communication,Label Bas-Carbone,Low-carbon standard,Agriculture
    Date: 2021–09–01
  44. By: Raouf Boucekkine (ESC Rennes School of Business - ESC Rennes School of Business); Carmen Camacho (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Weihua Ruan (Purdue University Northwest); Benteng Zou (University of Luxembourg [Luxembourg])
    Abstract: We use a parsimonious two-stage differential game setting where the duration of the first stage, the coalition stage, depends on the will of a particular player to leave the coalition through an explicit timing variable. By specializing in a standard linear-quadratic environmental model augmented with a minimal constitutional setting for the coalition (payoff share parameter), we are able to analytically extract several nontrivial findings. Three key aspects drive the results: the technological gap as an indicator of heterogeneity across players, the constitution of the coalition and the intensity of the public bad (here, the pollution damage). We provide with a full analytical solution to the two-stage differential game. In particular, we characterize the intermediate parametric cases leading to optimal finite time splitting. A key characteristic of these finite-time-lived coalitions is the requirement of the payoff share accruing to the splitting country to be large enough. Incidentally, our two-stage differential game setting reaches the conclusion that splitting countries are precisely those which use to benefit the most from the coalition. Constraining the payoff share to be low by Constitution may lead to optimal everlasting coalitions only provided initial pollution is high enough, which may cover the emergency cases we are witnessing nowadays.
    Keywords: Coalition splitting,Constitutional vs technological heterogeneity,Environmental agreements,Multistage optimal control Coalition splitting,Differential games
    Date: 2022–05
  45. By: Iogansen, Xiatian; Circella, Giovanni
    Abstract: Emerging transportation services such as ridehailing, whose development and adoption have been enabled by information and communication technology, are transforming people’s travel and activity patterns. It is unclear what these changes mean for environmental sustainability, as researchers are still trying to understand how new mobility services might impact multimodal travel and reliance on private cars. A better understanding of emerging mobility patterns can improve travel demand forecasting tools, inform investment decisions, and help provide efficient, reliable, and accessible transportation solutions. Building on a multi-year study, researchers at the University of California, Davis surveyed 4,071 California residents in 2018 about their personal attitudes and preferences, lifestyles, travel patterns, vehicle ownership, adoption and use of new mobility services, and personal and household characteristics. This brief summarizes the results of multiple studies that have used this dataset to generate insights into the impact of ridehailing services on the use of other travel modes and on car ownership prior to the COVID-19 pandemic, as well as provides policy implications. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Age groups, Automobile ownership, Consumer preferences, Mode choice, Shared mobility, Travel behavior
    Date: 2022–07–01
  46. By: Kendall, Alissa; Murphy, Colin
    Keywords: Engineering
    Date: 2022–06–01
  47. By: Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech); Bénédicte Apouey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Hazem Arab (UP1 - Université Paris 1 Panthéon-Sorbonne); Simon Baeckelandt (Université de Lille); Philippe Begout (GIS DEMOCRATIE ET PARTICIPATION - Partenaires IRSTEA - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture); Nicolas Berghmans (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Nathalie Blanc (CNRS - Centre National de la Recherche Scientifique); Jean-yves Boulin (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Eric Buge (Assemblée Nationale); Dimitri Courant (UNIL - Université de Lausanne); Amy Dahan (CNRS - Centre National de la Recherche Scientifique); Adrien Fabre (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]); Jean-Michel Fourniau (Université Gustave Eiffel); Maxime Gaborit (Université Saint-Louis - Bruxelles); Laurence Granchamp (CNRS - Centre National de la Recherche Scientifique); Hélène Guillemot (CNRS - Centre National de la Recherche Scientifique); Laurent Jeanpierre (UP1 - Université Paris 1 Panthéon-Sorbonne); Hélène Landemore (Yale University [New Haven]); Jean-François Laslier (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Antonin Macé (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Claire Mellier; Sylvain Mounier (GIS DEMOCRATIE ET PARTICIPATION - Partenaires IRSTEA - IRSTEA - Institut national de recherche en sciences et technologies pour l'environnement et l'agriculture); Théophile Pénigaud (ENS Lyon - École normale supérieure - Lyon); Ana Povoas (ULB - Université libre de Bruxelles); Christiane Rafidinarivo (UR - Université de La Réunion); Bernard Reber (CNRS - Centre National de la Recherche Scientifique); Romane Rozencwajg (UP8 - Université Paris 8 Vincennes-Saint-Denis); Philippe Stamenkovic (Université Ben Gourion du Néguev); Selma Tilikete (UP8 - Université Paris 8 Vincennes-Saint-Denis); Solène Tournus (CNRS - Centre National de la Recherche Scientifique)
    Abstract: Launched in 2019, the French Citizens' Convention for Climate (CCC) tasked 150 randomly-chosen citizens with proposing fair and effective measures to fight climate change. This was to be fulfilled through an "innovative co-construction procedure," involving some unspecified external input alongside that from the citizens. Did inputs from the steering bodies undermine the citizens' accountability for the output? Did co-construction help the output resonate with the general public, as is expected from a citizens' assembly? To answer these questions, we build on our unique experience in observing the CCC proceedings and documenting them with qualitative and quantitative data. We find that the steering bodies' input, albeit significant, did not impair the citizens' agency, creativity and freedom of choice. While succeeding in creating consensus among the citizens who were involved, this co-constructive approach however failed to generate significant support among the broader public. These results call for a strengthening of the commitment structure that determines how follow-up on the proposals from a citizens' assembly should be conducted.
    Keywords: Citizens’ assemblies,climate assemblies,deliberative democracy,co-construction,carbon tax,referendum
    Date: 2022
  48. By: Mattila, Juri; Seppälä, Timo; Bützow, Alexander; Hynönen, Kalle; Puittinen, Mika
    Abstract: Abstract In this brief, we analyze the implications of the new European Commission’s data act from the perspective of both industry agreements and the digital green transition. In addition, we ask whether the new regulation of data will contribute to the emergence of data sharing practices and the digital green transition. It is worth noting that the new data regulation in its current form does not consider the specificities of the industry.
    Keywords: Data act, Data, Industrial data, Contacts, Data sharing, Digitalization, Digital green transition
    JEL: K1 K12 K2 L89
    Date: 2022–07–06

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