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on Energy Economics |
| By: | Mara Hammerle (Crawford School of Public Policy, Australian National University); Paul J. Burke (Crawford School of Public Policy, Australian National University) |
| Abstract: | Expanding access to solar photovoltaics (PV) may help to reduce the incidence of energy poverty. Yet little is known about the strength and magnitude of this relationship. This paper uses cross-sectional survey data from the Australian Bureau of Statistics to conduct a retrospective analysis of the effects of having rooftop solar PV for Australian households. As the main identification challenges are the potential for omitted variables and reverse causality, we present results for regressions controlling for potential confounders and also use an instrumental variable approach. The study finds that having solar PV is associated with a large decrease in the likelihood of experiencing energy poverty based on objective indicators that compare household incomes and energy bills. Having solar PV is also associated with a reduction in self-reported difficulty in paying bills on time, although this effect is less robust across estimations. The findings could inform future policies for promoting residential solar PV through an improved understanding of likely impacts. |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:2203&r= |
| By: | Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Sen, Anupama |
| Abstract: | As renewable energy technologies mature, new industry configurations are also emerging with offshore wind and energy islands as notable examples. However, a clear conceptualisation of the role of the state and governance framework is lacking, alongside growing pressure for the state to define the path forward. This paper reviews recent developments in emerging EU offshore renewable energy regimes, highlighting three implications that show the need for new governance frameworks. First, there is a reconfiguration of energy industry structures around changing economics and policies, in a repeat of historical trends. Second, energy islands will increasingly represent features of a natural resource in fixed supply, with the economic nature of offshore energy gradually transiting from the sub-domain of renewable energy economics towards natural resource economics. Third, to realise their economic value, frameworks are needed to enable these resources to harmonise with other resources in fixed supply, such as the land on which they are sited, which is constitutionally under the stewardship of the state. Finally, the paper draws out a set of criteria for governance of emerging offshore renewables, to underpin the changing industry landscape and role of the new ‘energy state’ within |
| Keywords: | Offshore energy; Governance; Fiscal regime; Energy; Natural resources; Power |
| JEL: | L22 L24 L51 Q20 Q24 Q28 Q32 Q38 Q48 |
| Date: | 2022–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2022_005&r= |
| By: | Andreas Coester (Vrije Universiteit Amsterdam); Marjan Hofkes (Vrije Universiteit Amsterdam); Elissaios Papyrakis (Erasmus University Rotterdam) |
| Abstract: | Renewable electricity plays an increasingly important role in the effort to reduce CO2 emissions in the electricity sector. One of the major challenges that must be addressed is the fluctuating supply of renewable electricity. We explore the impact of cross-border electricity transfers on both the security of electricity supply and renewable electricity expansion. We focus on Spain and Germany due to the relative abundance of their country-specific renewable electricity sources (solar for Spain and wind for Germany). We develop an electricity market model that allows for cross-border electricity transfers by connecting country-specific electricity markets. We apply six policy scenarios aiming towards securing the electricity supply and renewable electricity expansion. Our simulation results show that cross-border electricity transfers postpone supply shortages in both countries. These shortages occur as a result of an increasing amount of low-marginal-cost renewable electricity, which, in turn, leads to a decrease in the electricity price, so that power plants cannot operate profitably. However, the postponement of these supply shortages is primarily achieved through an excess supply of German conventional power plants that are utilised to meet excess demand in Spain. Although this serves to reduce required government subsidies, it also leads to an increase in CO2 emissions. |
| Keywords: | Cross-border electricity transfers, Security of electricity supply, Renewable Electricity |
| JEL: | Q41 Q42 Q48 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20220043&r= |
| By: | Fouquet, Roger; Hippe, Ralph |
| Abstract: | This paper investigates the structural transformation associated with the ‘twin transition’ of decarbonisation and digitalisation in European economies by placing it in a broader historical perspective. With this in mind, this paper analyses the long run trends in energy intensity and communication intensity since 1850. The evidence indicates that these economies experienced a coevolution of energy and communication intensities during their industrialisation phase, followed by a divergence in the energy and communication intensities associated with the development of high tech and ICT. Overall, this reflects the dematerialisation of these European economies. The paper also analyses the speed of historical energy transitions and communication technology transitions in these economies, finding that communication transitions appear to be substantially faster than energy transitions. The evidence suggests that twin transitions of the decarbonisation and digitalisation of economies are likely to experience a process of imbalanced structural transformation (with ICT continuing to forge ahead). This expectation should guide policy recommendations – increasing the need for low carbon industry to develop and create synergies between the two industries in order to avoid the new industrial revolution being high-carbon. |
| Keywords: | energy transitions; ICT; twin transition; energy intensity; historical; EP/R 035288/1; ES/R009708/1 |
| JEL: | N0 |
| Date: | 2022–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115544&r= |
| By: | Catuti, Mihnea; Righetti, Edoardo; Egenhofer, Christian; Kustova, Irina |
| Abstract: | Clean hydrogen will offer decarbonisation solutions for sectors where direct electrification would be either technologically impossible or too costly, though future demand should not be overestimated. Hydrogen will most likely be used in hard-to-decarbonise industrial processes, some segments of the transport sector, as well as for long-term energy storage. For hydrogen to contribute to decarbonisation, it needs to be produced with minimal greenhouse gas emissions. Therefore, hydrogen obtained through electrolysis using renewable electricity will represent the priority for the EU. However, this does come with a set of trade-offs, all of which are explored at length in this report. A key challenge will be the interaction with the already-strained electricity market. New renewable energy installations are facing deployment obstacles, therefore the decarbonisation of the electricity mix and the deployment of renewable hydrogen need to be developed together to avoid tensions. This report also focuses on two other potential hydrogen sources. Nuclear hydrogen could create more opportunities for producing low-carbon hydrogen from electricity, whilst imports could cover potential supply deficits and provide further access to inexpensive renewable hydrogen for domestic consumption. Robust criteria will be needed for certifying the renewable nature of hydrogen, based on clear temporal and geographical connection requirements between the electrolyser and the renewable installations. However, the separate certification of low-carbon hydrogen produced from electricity that meets similar emissions savings requirements should also be established, without labelling it as renewable. |
| Date: | 2021–12 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:34767&r= |
| By: | Marco Sebastian Breder; Felix Meurer; Michael Bucksteeg; Christoph Weber (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen) |
| Abstract: | Germany’s energy transition is associated with increasing congestion in the electricity transmission grids due to increasing infeed from renewable energy sources, especially from wind turbine installation at the periphery in coastal areas. Here, regional differences in generation and demand lead to grid bottlenecks from the northern to the southern parts of the country, thus leading to grid expansion requirements towards the load centers. However, long lead times for grid expansion in combination with the rapid expansion of renewables amplify the grid congestion. The provision of flexibility is one way to overcome this issue. In zonal markets, loadside flexibility can mitigate this situation, but it can also exacerbate it. Hence, adequate spatial incentives are crucial. To date, research has discussed possible market splits as a mid-term solution to improve congestion management, recognizing that the first-best solution of nodal prices is controversial in Europe. Nevertheless, adjusted bidding zones, e.g., by market splitting, can offer a solution. In the context of energy transition and ambitious decarbonization goals, hydrogen becomes important both as a storage option for renewable energy surplus and a green fuel for multiple usages. The German government already foresees 10 GW of electrolyser capacity by 2030, yet their locations will strongly affect congestion in the electricity grid. Therefore, this study investigated the impact of a possible market split on both the operation of and the investment in electrolysers. We apply an optimization approach including endogenous investment decisions linked to a detailed scheduling model. The investments are iteratively adjusted based on a Benders decomposition approach to study the impacts of market splitting on both the amount and the location of investments in terms of the electrolysers’ capacity and operation. In addition to conducting an analysis of spatial incentives, this study considered incentives through different CO2 prices. |
| Keywords: | Hydrogen, German Energy Transition, Electricity Market, Operations Research, Market Split |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:dui:wpaper:2203&r= |
| By: | Euan Mearns (ETH Zürich - Department of Management, Technology, and Economics (D-MTEC)); Didier Sornette (ETH Zürich - Department of Management, Technology, and Economics (D-MTEC); Swiss Finance Institute; Southern University of Science and Technology; Tokyo Institute of Technology) |
| Abstract: | The Swiss energy plan 2050 includes an increase of electricity consumption by 37% from the electrification of transport and heating, together with phasing out 2.9 GWe of nuclear power (about one-third of the nation's gross electricity generation) and substituting this lost power mainly with solar PV. We examine to what extent this energy plan adds up in the spirit of the late David MacKay. We use the realised production of a recent year and develop and validate reconstructions of the Swiss grid in January and July 2017 with one-hour resolution and use these as a platform to simulate the Swiss grid in 2050, incorporating the main elements of the 2050 plan. We confirm that, in July 2050, when solar energy is abundant, Switzerland can be self-sufficient in electricity. Newly expanded pumped hydro storage may shift load from daytime solar peaks to nighttime deficit. Hydro and pumped hydro are displaced from current high value midday production to nighttime production when Swiss solar PV produces zero power. In January 2050, solar PV will produce negligible power leaving Switzerland starved of indigenous supply. There is no electricity surplus to charge storage that may therefore stand idle. We compute an import requirement equivalent to 69% of demand, or approximately 6.0 TWh just for January 2050. We quantify that surplus European wind power may meet this deficit for some of the time but during frequent pan-European lulls in the wind, it is not assured that Europe will have surplus power to export. |
| Keywords: | Switzerland, energy transition, nuclear, solar, storage , viability, costs |
| JEL: | O13 P18 P28 Q4 Q47 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2256&r= |
| By: | Rahul Tongia |
| Abstract: | With some of the world's most ambitious renewable energy (RE) growth targets, especially when normalized for scale, India aims more than quadrupling wind and solar by 2030. Simultaneously, coal dominates the electricity grid, providing roughly three-quarters of electricity today. We present results from the first of a kind model to handle high uncertainty, which uses parametric analysis instead of stochastic analysis for grid balancing based on economic despatch through 2030, covering 30-minute resolution granularity at a national level. The model assumes a range of growing demand, supply options, prices, and other uncertain inputs. It calculates the lowest cost portfolio across a spectrum of parametric uncertainty. We apply simplifications to handle the intersection of capacity planning with optimized despatch. Our results indicate that very high RE scenarios are cost-effective, even if a measurable fraction would be surplus and thus discarded ("curtailed"). We find that high RE without storage as well as existing slack in coal- and gas-powered capacity are insufficient to meet rising demand on a real-time basis, especially adding time-of-day balancing. Storage technologies prove valuable but remain expensive compared to the 2019 portfolio mix, due to issues of duty cycling like seasonal variability, not merely inherent high capital costs. However, examining alternatives to batteries for future growth finds all solutions for peaking power are even more expensive. For balancing at peak times, a smarter grid that applies demand response may be cost-effective. We also find the need for more sophisticated modelling with higher stochasticity across annual timeframes (especially year on year changes in wind output, rainfall, and demand) along with uncertainty on supply and load profiles (shapes). |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.02151&r= |
| By: | KANEMOTO Yoshitsugu |
| Abstract: | The electricity market reform in Japan aims to simultaneously achieve both energy security and economic efficiency by creating balancing and capacity markets in addition to the wholesale power market that already exists. Of the two markets, this paper focuses on the capacity market and analyzes its fundamental issues using a deterministic electricity network model. Ensuring security of electricity supply may require government intervention because of price caps that are used to alleviate market power and a variety of market failures that result in excessively high costs of electric power investment. The central task of this paper is to study how to design the capacity market to ensure there will be sufficient capacity to meet demand. Another major topic is the cost-benefit analysis of transmission investment in the presence of the capacity market. When there is no price cap and electricity prices are optimally determined, the revenue from price differences caused by transmission constraints equals the benefit of transmission expansion. We study how this must be changed when a capacity market is introduced. |
| Date: | 2021–07 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:22026&r= |
| By: | Breisinger, Clemens; Diao, Xinshen; Dorosh, Paul A.; Mbuthia, Juneweenex; Omune, Lensa; Oseko, Edwin Ombui; Pradesha, Angga; Smart, Jenny; Thurlow, James |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the increase occurring since February. There is wide variation across products, with real maize prices increasing by only 11 percent, and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, and the weighted average price of fertilizer has doubled. With these changes in global prices, many developing countries and their development partners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | KENYA, EAST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:1&r= |
| By: | Diao, Xinshen; Dorosh, Paul A.; Randriamamonjy, Josée; Smart, Jenny; Thurlow, James |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the increase occurring since February (Figure 1). Wide variation exists across products, with real maize prices increasing by only 11 percent and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, while the weighted average price of fertilizer has dou-bled. With these changes in global prices, many developing countries and their development part-ners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | MALI, WEST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:7&r= |
| By: | Andam, Kwaw S.; Diao, Xinshen; Dorosh, Paul A.; Pradesha, Angga; Thurlow, James |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the in-crease occurring since February (Figure 1). Wide variation exists across products, with real maize prices increasing by only 11 percent and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, while the weighted average price of fertilizer has dou-bled. With these changes in global prices, many developing countries and their development part-ners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | NIGERIA, WEST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet, gross national product |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:4&r= |
| By: | Diao, Xinshen; Dorosh, Paul A.; Randriamamonjy, Josée; Smart, Jenny; Thurlow, James |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the in-crease occurring since February (Figure 1). Wide variation exists across products, with real maize prices increasing by only 11 percent and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, while the weighted average price of fertilizer has dou-bled. With these changes in global prices, many developing countries and their development part-ners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | NIGER, WEST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:6&r= |
| By: | Diao, Xinshen; Dorosh, Paul A.; Thurlow, James; Spielman, David J.; Smart, Jenny; Benimana, Gilberthe; Mugabo, Serge; Rosenbach, Gracie |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors have contributed to the crisis, such as export bans and continued supply chain disruptions from the COVID-19 pandemic. For example, between June 2021 and April 2022, the global prices of palm oil and wheat increased by 56 and 100 percent in real terms, respectively. At the same time, the price of fertilizer doubled, while crude oil and natural gas prices have also risen substantially. However, wide variation also exists across commodities, with real maize prices increasing by only 11 percent, and rice prices declining by 13 percent (Figure 1). |
| Keywords: | RWANDA, CENTRAL AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet, commodities, fertilizers |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:5&r= |
| By: | Diao, Xinshen; Dorosh, Paul A.; Smart, Jenny; Thurlow, James |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the in-crease occurring since February (Figure 1). Wide variation exists across products, with real maize prices increasing by only 11 percent and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, while the weighted average price of fertilizer has dou-bled. With these changes in global prices, many developing countries and their development part-ners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | BANGLADESH, SOUTH ASIA, ASIA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet, commodities, fertilizers, gross national product |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:3&r= |
| By: | Diao, Xinshen; Dorosh, Paul A.; Kedir Jemal, Mekamu; Smart, Jenny; Taffesse, Alemayehu Seyoum; Thurlow, James |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the in-crease occurring since February (Figure 1). Wide variation exists across products, with real maize prices increasing by only 11 percent and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, while the weighted average price of fertilizer has dou-bled. With these changes in global prices, many developing countries and their development part-ners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | ETHIOPIA, EAST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet, commodities, fertilizers |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:2&r= |
| By: | Ehrhart, Karl-Martin; Schlecht, Ingmar |
| Keywords: | gas market,Russia,European Union,game theory,external price cap |
| JEL: | F13 Q40 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:261345&r= |
| By: | Gros, Daniel |
| Abstract: | There is no silver bullet. Renewables or new conventional energy supplies will take years to become available at the scale needed. However, high prices do induce substitution to other fuels and encourage energy savings – not only in Europe, but also in other markets, thus potentially freeing up gas for Europe. This CEPS Policy Insights paper makes the calculations to show that by considering Europe and Asia as one interconnected energy market, high gas prices could, on their own, bring about the necessary reduction in (global) gas demand to free up enough resources for Europe. This could be achieved even over a period as short as 9-12 months, thus in time to keep Europe warm and fully operational through the next winter, without having to rely on Russian gas. |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:35815&r= |
| By: | N. N. |
| Abstract: | Die globale Wirtschaftserholung nach Abflauen der COVID-19-Krise hat in der zweiten Jahreshälfte 2021 die Preise für Erdgas und Erdöl deutlich anziehen lassen. Dazu kam in Europa eine von Russland aktiv betriebene Verknappung von Gas, die schon vor dem Angriff Russlands auf die Ukraine zu einer Explosion der Gaspreise geführt hat. Der Krieg in der Ukraine, die von der EU gegenüber Russland verhängten Sanktionen und die Gegenreaktionen Russlands tragen weiter zur Verteuerung von Energie bei. So haben sich die Herausforderungen für die Transformation des europäischen Energiesystems in der zeitlichen und sachlichen Dimension schlagartig vergrößert. Das WIFO versucht mit diesem Research Brief eine Orientierung für die wirtschaftspolitischen Entscheidungsträger zu geben, indem auf der Grundlage der bestehenden Energiemarktordnung der Preisbildungsmechanismus für Strom über die Merit-Order analysiert und Handlungsoptionen innerhalb dieses Systems zur Dämpfung der Strompreise vorgestellt werden. |
| Date: | 2022–07–21 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:rbrief:y:2022:i:18&r= |
| By: | Gros, Daniel |
| Abstract: | The EU does not have an army. It thus cannot defend Ukraine from a Russian invasion, but it can at least put itself in a situation in which it does not depend on gas deliveries from a potential aggressor, a dependence that many argue would only become more severe with the formal opening of the controversial Nord Stream 2 pipeline connecting Russia with Germany. Diminishing Europe’s dependence on Russian gas requires the creation of a credible European Strategic Gas Reserve for emergency situations. This cannot be achieved overnight but some first practical steps can be taken quickly and, importantly, cheaply. Such action, which should be spearheaded at the European level, would send a powerful signal that the EU is indeed willing to act and put its money where its mouth is, namely in the defence of its core values and strategic interests. |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:35125&r= |
| By: | Michał Rubaszek; Karol Szafranek |
| Abstract: | Unprecedented increases in European natural gas prices observed in late 2021 and early 2022 raise a question about the sources of these events. In this article we investigate this topic using a time-varying parameters structural vector autoregressive model for crude oil, US and European natural gas prices. This flexible framework allows us to measure how disturbances specific to the analyzed markets propagate within the system and how this propagation mechanism evolves in time. Our findings are fourfold. First, we show that oil prices are hardly affected by shocks specific to natural gas markets, whether in the US or Europe. Second, we demonstrate that oil shocks have limited impact on US gas prices, which points to the decoupling of both markets. Third, we evidence that over longer horizons natural gas prices in Europe are still mostly determined by oil shocks, with idiosyncratic shocks leading to short-lived decoupling of both commodity prices. Fourth, we illustrate that along the gradual shift from oil price indexation to gas-on-gas competition, the contribution of idiosyncratic shocks to European natural gas prices has increased. Nonetheless, we discuss why the notion that EU natural gas and crude oil prices have decoupled might be premature. |
| Keywords: | Energy market, oil-gas relationship, TVP-VAR model, Bayesian inference. |
| JEL: | C11 C32 Q31 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:sgh:kaewps:2022078&r= |
| By: | Sager, Lutz; Singer, Gregor |
| Abstract: | We analyze the effect of the U.S. Clean Air Act standards for fine particulate matter (PM2.5). Using high-resolution air pollution data, we find that nonattainment designations in 2005 led to reductions in PM2.5 levels by −0.4µm−3 over five years, with larger effects in more polluted areas. Standard difference-in-differences would overstate these effects by a factor of three due to time trends that differ by baseline pollution. We propose three alternative approaches which respectively control for baseline pollution levels, match similar attainment and nonattainment areas, and exploit the discontinuous regulatory nonattainment cutoff. We show that nonattainment designations contributed to narrowing Urban-Rural and Black-White PM2.5 exposure disparities, but less than in a difference-in-differences framework. Pollution damages capitalized into house prices, however, are understated by difference-in-differences when using nonattainment as instrument and thus larger than previously thought. |
| Keywords: | air pollution; clean air act; environment justice; regulation; house prices |
| JEL: | R14 J01 |
| Date: | 2022–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115528&r= |
| By: | Chen, Chen-Ti; Rudik, Ivan; Kling, Catherine L.; Rodewald, Amanda; Johnston, Alison |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Research Methods/Statistical Methods |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322544&r= |
| By: | Danae Hernandez-Cortes; Kyle C. Meng; Paige E. Weber |
| Abstract: | This paper quantifies and decomposes recent trends in U.S. PM2.5 disparities from the electricity sector using a high-resolution pollution transport model. Between 2000-2018, PM2.5 concentrations from electricity fell by 89% for the average individual, more than double the decline rate in overall U.S. ambient PM2.5 concentrations. Across racial/ethnic groups, we detect a dramatic convergence: since 2000, the Black-White PM2.5 disparity from electricity has narrowed by 95% and the Hispanic-White PM2.5 disparity has narrowed by 93%, though these disparities still exist in 2018. A decomposition reveals nearly all of these disparity trends can be attributed roughly equally to improvements in emissions intensities and compositional changes in electric generators, with small contributions from scale and residential location changes. This suggests both local air pollution policies and recent coal-to-natural gas fuel switching have played major roles in reducing U.S. racial/ethnic pollution disparities from electricity. While we detect similarly large PM2.5 improvements for the average low and high income individual, PM2.5 disparities by income are relatively small, with little change over time. |
| JEL: | H4 I14 Q5 Q51 Q52 Q53 Q54 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30198&r= |
| By: | Borgschulte, Mark (University of Illinois at Urbana-Champaign); Molitor, David (University of Illinois at Urbana-Champaign); Zou, Eric Yongchen (University of Oregon) |
| Abstract: | We study how air pollution impacts the U.S. labor market by analyzing effects of drifting wildfire smoke that can affect populations far from the fires themselves. We link satellite smoke plume with labor market outcomes to estimate that an additional day of smoke exposure reduces quarterly earnings by about 0.1 percent. Extensive margin responses, including employment reductions and labor force exits, can explain 13 percent of the overall earnings losses. The implied welfare cost of lost earnings due to air pollution exposure is on par with standard valuations of the mortality burden. The findings suggest that labor market channels warrant greater consideration in policy responses to air pollution. |
| Keywords: | air pollution, labor market, wildfires |
| JEL: | J21 Q51 Q52 Q53 Q54 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15373&r= |
| By: | Tsendsuren Batsuuri |
| Abstract: | The success of the 2015 Paris Agreement in achieving its main temperature goal depends on its ability to increase the ambitions of individual countries to reduce their carbon emissions through effort comparison and peer pressure. Despite the empirical relevance of demographic changes in affecting factor prices, economic growth, and capital flows across countries, most comparisons of countries’carbon emissions reduction efforts are based on models that cannot capture demographic effects. Overlooking future demographic changes is problematic given the profound yet asymmetric demographic changes that countries are undergoing. This paper uses a two-country life-cycle model to show that comparing carbon emissions mitigation efforts can be misleading if countries’baseline emissions trajectories do not account for demographic dividends and spillovers from one country to another from unsynchronized demographic changes and asymmetric institutions. Through capital flows, differences in the timing, speed, and magnitude of demographic changes can reduce the emissions baseline in one country while increasing it in another country relative to the baseline with no spillovers — an effect which is amplified by differences in institutions such as pension and social security systems. Models that do not consider the effect of demographic changes and the institutions on the economy and emissions may underestimate one country’s carbon emissions reduction effort while overestimating that of another. Consequently, neglecting demographic changes when comparing countries’carbon emissions mitigation efforts can undermine the successful implementation of the Paris Agreement. |
| Keywords: | Global imbalances, Demographic transition, Carbon emissions, Lifecycle model, Energy dependent production function. |
| JEL: | E2 F32 F41 J11 J13 J14 O13 Q43 C6 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2022-42&r= |
| By: | Casati, Mirta; Stranieri, Stefanella; Rommel, Jens; Medici, Riccardo; Soregaroli, Claudio |
| Keywords: | Research Methods/Statistical Methods, Institutional and Behavioral Economics, Environmental Economics and Policy |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322144&r= |
| By: | Bekkers, Eddy; Cariola, Gianmarco |
| Abstract: | Climate change mitigation faces two main policy challenges: the need for global cooperation to tackle the collective action problem and the need to share the burden of global carbon pricing fair way following the principle of common but differentiated responsibility (CBRD). In this paper we explore the best ways to incentivize regions to reduce their CO2 emissions while minimizing the welfare losses for low-income countries using simulations with a recursive dynamic computable general equilibrium (CGE) model. We first present the necessity, efficiency and urgency of global carbon pricing policies climate change mitigation policies. Global carbon pricing is necessary to tackle climate change, is more efficient than regional carbon pricing, and is urgent to prevent a patchwork of carbon pricing policies leading to calls for border carbon adjustment (BCA). However, because the impact of global carbon pricing on most regions is negative, complementary policies are needed to provide sufficient incentives to join a global carbon pricing coalition and at the same time share the burden fairly. We examine four potential complementary policies: BCA, Nordhaus's climate club, a global incentive scheme, and emission trading with progressive emission reduction targets. We evaluate these proposals based on their projected effects on average income and income inequality among countries, as well as their effectiveness as an incentive to introduce carbon pricing. BCA scores poorly along the three dimensions; Nordhaus's carbon club performs well as an incentive tool but has a negative impact on income and income inequality; the global carbon incentive has a positive impact on income and income inequality but performs poorly as an incentive tool; and emission trading with progressive reduction targets scores well across all dimensions. We conclude with a discussion of the feasibility of emission trading. |
| Keywords: | structural change,international trade,globalization |
| JEL: | F15 F62 F63 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:ersd202210&r= |
| By: | David A. Weisbach (The University of Chicago Law School); Samuel Kortum (Cowles Foundation, Yale University); Michael Wang (Northwestern University Feinberg School of Medicine); Yujia Yao (International Monetary Fund) |
| Abstract: | Climate policies vary widely across countries, with some countries imposing stringent emissions policies and others doing very little. When climate policies vary across countries, energy-intensive industries have an incentive to relocate to places with few or no emissions restrictions, an effect known as leakage. Relocated industries would continue to pollute but would be operating in a less desirable location. We consider solutions to the leakage problem in a simple setting where one region of the world imposes a climate policy and the rest of the world is passive. We solve the model analytically and also calibrate and simulate the model. Our model and analysis imply: (1) optimal climate policies tax both the supply of fossil fuels and the demand for fossil fuels; (2) on the demand side, absent administrative costs, optimal policies would tax both the use of fossil fuels in domestic production and the domestic consumption of goods created with fossil fuels, but with the tax rate on production lower due to leakage; (3) taxing only production (on the demand side), however, would be substantially simpler, and almost as effective as taxing both production and consumption, because it would avoid the need for border adjustments on imports of goods; (4) the effectiveness of the latter strategy depends on a low foreign elasticity of energy supply, which means that forming a taxing coalition to ensure a low foreign elasticity of energy supply can act as a substitute for border adjustments on goods. |
| Keywords: | climate change, carbon taxes, leakage, border adjustments |
| JEL: | F18 H23 Q54 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2339&r= |
| By: | Kuusi, Tero; Wang, Maria |
| Abstract: | Abstract The EU’s Emission Trading Scheme (EU ETS) has been shown to have reduced emissions in the participating countries and industries since its adoption in 2005. However, there is less evidence on the shifting of production outside EU to avoid emission controls. We study this so-called carbon leakage with gravity analysis of international trade flows and carbon intensities of trade. We provide a simple theoretical framework and study its implications empirically. Our findings with the new OECD data indicate that carbon leakage has in fact occurred due to the EU ETS, resulting in higher CO2 intensity of imports to the EU, and lower CO2 intensity of exports from the EU. The evidence on the value of imports also shows some increases from nonparticipating countries due to the ETS. We find that our results are broadly consistent with the theory. |
| Keywords: | Carbon leakage, EU ETS, Gravity model |
| JEL: | J23 J24 O33 |
| Date: | 2022–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:94&r= |
| By: | Ge, Houtian; Baker, Quinton J.; Gomez, Miguel I.; Jaromczyk, Jerzy; Yi, Jing |
| Keywords: | Environmental Economics and Policy, Agribusiness, Agricultural and Food Policy |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322537&r= |
| By: | Diao, Xinshen; Dorosh, Paul A.; Pauw, Karl; Smart, Jenny; Thurlow, James; Asante, Seth; Patil, Pranav |
| Abstract: | Global food, fuel, and fertilizer prices have risen rapidly in recent months, driven in large part by the fallout from the ongoing war in Ukraine and the sanctions imposed on Russia. Other factors, such as export bans, have also contributed to rising prices. Palm oil and wheat prices increased by 56 and 100 percent in real terms, respectively, between June 2021 and April 2022, with most of the in-crease occurring since February (Figure 1). Wide variation exists across products, with real maize prices increasing by only 11 percent, and rice prices declining by 13 percent. The price of crude oil and natural gas has also risen substantially, while the weighted average price of fertilizer has doubled. With these changes in global prices, many developing countries and their development partners are concerned about the implications for economic stability, food security, and poverty. |
| Keywords: | GHANA, WEST AFRICA, AFRICA SOUTH OF SAHARA, AFRICA, Ukraine, poverty, food security, armed conflicts, crises, prices, shock, agrifood systems, equality, diet, gross national product |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:gccbrf:9&r= |
| By: | Taheripour, Farzad; Steffen, Muller; Karami, Omid; Sajedinia, Ehsanreza; Emery, Isaac; Kwon, Hoyoung |
| Keywords: | Environmental Economics and Policy, Resource/Energy Economics and Policy, Productivity Analysis |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322289&r= |
| By: | Shiyi Chen; Joshua S. Graff Zivin; Huanhuan Wang; Jiaxin Xiong |
| Abstract: | This paper investigates the impact of a pioneering pollution reduction program, the Ecological Compensation Initiative (ECI) in China, which establishes side payments between upstream and downstream provinces along the same river. The program includes both Coasian and pay-for-performance elements. Instructed by a theoretical model, we employ a difference-in-differences empirical design and find strong evidence that the ECI mitigates the spillover effect of water pollution at the province boundary and brings about sharp reductions in water pollutant emissions from upstream firms, especially those in heavily polluting industries. This initiative also reduces upstream firms’ output and pollution intensity relative to downstream firms. The impact is stronger for upstream firms closer to the river and the point at which it enters the downstream province. Further evidence shows a significant increase in the rate of firms’ entry into neighboring prefectures, but no impact on firms’ exit from that region due to the initiative. Evidence from similar programs, later established in other river systems, suggests that cross-jurisdictional negotiations can effectively mitigate cross-border pollution externalities. |
| JEL: | D22 H7 K32 Q53 Q56 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30233&r= |
| By: | Eicke, Anselm |
| Abstract: | The location of electricity generation assets within a power system involves a fundamental trade-off: is it better to place generators at sites where generation costs are low, or should generators be situated close to consumers? This question is particularly relevant for wind turbines and solar photovoltaics, whose availability strongly varies between regions. If market prices reflect network constraints, the prices provide a locational signal. This is not the case in zonal markets with uniform prices. There, regulators can intervene by other means, such as administratively determined network tariffs that vary by location and are paid by generators. In this work, I examine such regulatory locational instruments using a novel bi-level electricity market model. In the first stage, the regulator determines a locational signal. In the second stage, generators decide on investment and dispatch while accounting for the regulatory signal and the zonal electricity price. For an exemplary network, I find that the introduction of regulatory locational instruments significantly lowers the cost of electricity supply. |
| Keywords: | Locational signals,Investment incentives,OR in energy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:261346&r= |
| By: | Celso Brunetti; John Caramichael; Matteo Crosignani; Benjamin Dennis; Gurubala Kotta; Donald P. Morgan; Chaehee Shin; Ilknur Zer |
| Abstract: | This report has two objectives: 1. Review the available literature on Climate-Related Financial Stability Risks (CRFSRs) as it pertains to the United States. Specifically, the literature review considers several modeling approaches and aims to 1.1 Identify financial market vulnerabilities (e.g., bank leverage), 1.2 Provide an assessment of those vulnerabilities (high/medium/low) as identified by the current literature, and 1.3 Evaluate the uncertainty surrounding these assessments based on interpretation of the findings and coverage of existing literature (high/low). 2. Identify methodologies to link climate risks to financial stability and possible research paths to assess U.S. CRFSRs. The report is structured in three parts. First, it characterizes the potential financial system vulnerabilities of climate change. Second, it describes the major methodologies adopted in studying the implications of climate change and provides an assessment of financial system vulnerabilities identified by the current literature. Third, it discusses how different methodologies can be further developed or combined to assess U.S. CRFSRs. |
| Keywords: | Climate change; Financial stability and risk |
| Date: | 2022–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2022-43&r= |
| By: | Natalia Porto; Pablo de la Vega; Manuela Cerimelo |
| Abstract: | This paper aims to identify and characterize the potential of green jobs in Argentina, i.e., those that would benefit from a transition to a green economy, using occupational green potential scores calculated in US O*NET data. We apply the greenness scores to Argentine household survey data and estimate that 25% of workers are in green jobs, i.e., have a high green potential. However, when taking into account the informality dimension, we find that 15% of workers and 12% of wage earners are in formal green jobs. We then analyze the relationship between the greenness scores (with emphasis on the nexus with decent work) and various labor and demographic variables at the individual level. We find that for the full sample of workers the green potential is relatively greater for men, the elderly, those with very high qualifications, those in formal positions, and those in specific sectors such as construction, transportation, mining, and industry. These are the groups that are likely to be the most benefited by the greening of the Argentine economy. When we restrict the sample to wage earners, the green potential score is positively associated with informality. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.09279&r= |
| By: | Michel Moreaux (Toulouse School of Economics); Jean-Pierre Amigues (Toulouse School of Economics); Gerard van der Meijden (Vrije Universiteit Amsterdam); Cees Withagen (Vrije Universiteit Amsterdam) |
| Abstract: | Carbon capture and storage (CCS) seems an appealing option to meet the ambitious objectives of the Paris Agreement. Captured carbon emissions can also be injected in active fields to enhance recovery: Carbon capture and utilization (CCU). We study a dynamic model of CCS and CCU of an economy subject to a carbon budget. We demonstrate that if the social planner implements CCU, it does so at the beginning of the planning period and stops before the budget has been depleted. On the contrary, if CCS occurs in the social optimum, this happens only once the carbon budget has been depleted. We show that the relationship between the carbon budget and the carbon price can be non-monotonic if CCU occurs. Our model features three state variables: The stock of fossil fuel, the stock of atmospheric carbon and the stock of injected carbon in active fields. We derive frontiers that separate regions in initial-stock-space with and without CCS and CCU regimes in the social optimum. Finally, we compare the social optimum with the decentralized market outcome. |
| Keywords: | global warming, carbon capture and storage, enhanced recovery, non-renewable resources, renewable resources |
| JEL: | Q54 Q30 Q35 Q42 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20220041&r= |
| By: | Pavel Ciaian; Andrej Cupak; Pirmin Fessler; d'Artis Kancs |
| Abstract: | Individuals invest in Environmental-Social-Governance (ESG)-assets not only because of (higher) expected returns but also driven by ethical and social considerations. Less is known about ESG-conscious investor subjective beliefs about crypto-assets and how do these compare to traditional assets. Controversies surrounding the ESG footprint of certain crypto-asset classes - mainly on grounds of their energy-intensive crypto mining - offer a potentially informative object of inquiry. Leveraging a unique representative household finance survey for the Austrian population, we examine whether investors' ESG preferences can explain cross-sectional differences in individual portfolio exposure to crypto-assets. We find a strong association between investors' ESG preferences and the crypto-investment exposure. The ESG-conscious investor attention is higher for crypto-assets compared to traditional asset classes such as bonds and shares. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.14548&r= |
| By: | Matsumoto, Deanna; Mace, Caitlin; Reeb, Tyler; O’Brien, Thomas |
| Abstract: | The Port of Los Angeles and Port of Long Beach, together referred to as the San Pedro Bay Port Complex, are an important source of regional economic activity in southern California. However, the port complex is also the single largest fixed source of air pollution in the region. In response to pressure from regulatory agencies and local communities, the two ports developed a Clean Air Action Plan in 2006. The research team assembled three case studies of programs implemented under the Clean Air Action Plan: the Technology Advancement Program, voluntary Vessel Speed Reduction programs, and the Clean Trucks Program. An additional case study featured a proposed private-sector infrastructure project: the Southern California International Gateway project. Each case study describes the program, stakeholders involved, barriers to implementation, and outcomes. These cases highlight the institutional challenges the ports face while working with a multitude of stakeholders and regulatory bodies to address both environmental sustainability and economic competitiveness. View the NCST Project Webpage |
| Keywords: | Business, Air quality management, Case studies, Environmental policy, Freight transportation, Intermodal transportation, Ports |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9mr4958q&r= |
| By: | Giuliano Rolle (University of Ferrara – Department of Economics and Management (Ferrara, Italy);) |
| Abstract: | To achieve carbon neutrality by 2050, the transportation sector must radically reduce its greenhouse gas emissions (GHGEs) emissions. According to earlier research, a growth of the market share of the used car market and an expansion of the lifetime of second-hand vehicles can play a crucial role in preventing a considerable amount of carbon dioxide (CO2) emissions. So, the purpose of this paper is to estimate, through a series of hedonic pricing models (HPMs), the consumers’ marginal willingness to pay (MWTP) for three environmental attributes of used cars: their level of fuel efficiency, their level of CO2 emissions, and their belonging to one of the European emission categories. To perform this analysis, two original cross-sectional datasets (the Panda and the Milan ones) were created through a scraping process of the used cars’ listings contained in the Italian version of the AutoScout24’s online advertising platform. Despite its several limitations, the implications that can be derived from this work, which has estimated a relevant consumers' MWTP for vehicles that have an improved fuel efficiency - especially in the Milan HPMs - and that comply with the highest European emission standards, and a very small or even negative MWTP for cars’ with a reduced level of CO2 emissions, is a support for higher investments in policies that will encourage the purchases of used cars with a high degree of these environmental features and, at the same time, the dismantling of the oldest and most polluting vehicles of the national fleet. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0822&r= |
| By: | Bernardino Adão; Borghan N. Narajabad; Ted Temzelides |
| Abstract: | We develop a dynamic general equilibrium integrated assessment model that incorporates costs due to new technology adoption in renewable energy as well as externalities associated with carbon emissions and renewable technology spillovers. We use world economy data to calibrate our model and investigate the effects of the technology adoption channel on renewable energy adoption and on the optimal energy transition. Our calibrated model implies several interesting connections between technology adoption costs, the two externalities, policy, and welfare. We investigate the relative effectiveness of two policy instruments-Pigouvian carbon taxes and policies that internalize spillover effects-in isolation as well as in tandem. Our findings suggest that renewable technology adoption costs are of quantitative importance for the energy transition. We find that the two policy instruments are better thought of as complements rather than substitutes. |
| Keywords: | Technology adoption; Scrapping; Energy transition; Climate; Dynamic taxation |
| JEL: | H21 O14 O33 Q54 Q55 |
| Date: | 2022–07–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2022-45&r= |
| By: | Manuel Màximo Cruz; Santiago José Gahn |
| Abstract: | Due to growing oil imports, political leaders had been forced to let private companies produce the much-needed oil without which modern life is impossible. The most strident political clashes with what is known as ‘oil nationalism’, both ending in a coup d’´etat, happened in the period 1954/55 and 1958/63. The former had President Per´on’s dealings with the California Argentina de Petr´oleos S.A., a subsidiary of the Standard Oil, at the center of a heated debate and, the latter, had President Frondizi’s oil contracts with foreign oil companies. The historical, political and diplomatic background is developed so as to understand the complexities that led to the annulment of this unprecedented and effective policy with impressive effects on oil production and investment. For the first time, we show empirical evidence on the effectiveness of these contracts on domestic oil production. |
| Keywords: | Argentina, economic development, Foreign Direct Investment, import substitution policies, industrial policy, petroleum sector, structural change |
| JEL: | E22 F21 F23 G31 H54 L16 L52 N46 O14 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:crn:wpaper:crn2103&r= |
| By: | Misbah Bashir (Ph.D. Scholar PIDE) |
| Abstract: | The textile sector of Pakistan has infinite possibilities to grow. Various silos and disciplines of the economy must be set together to solve the puzzle of regional competitiveness. For several decades, textile competitiveness is suffering due to power shortage, governance issues, etc. During a pandemic, a 7.9 percent increase is observed in exports which can be partially attributed to the regionally competitive energy tariff launched by the government. |
| Keywords: | Importance, Reginally, Competitive, Energy Tarrifs, Textile Sector, |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wbrief:2021:30&r= |
| By: | Lapp, Bill |
| Keywords: | Agribusiness, Demand and Price Analysis |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao22:321113&r= |
| By: | Boriboonsomsin, Kanok; Vu, Alexander; Hao, Peng; Wei, Zhensong; Brown, Dylan; Barth, Matthew; Zhang, Yihang; Alasiri, Faisal; Vital, Filipe; Ioannou, Petros |
| Abstract: | In the last few decades, efforts to reduce emissions from heavy-duty diesel trucks (HDDTs) and their health impacts have been focused on imposing increasingly stringent emissions standards. This has led to significant advancements in emission control technologies and alternative fuel vehicle technologies. While these technologies are effective at reducing emissions from HDDTs, the turnover of the existing HDDT population to these advanced technologies would require a large amount of investment and along time. In the near term, other efforts to reduce emissions of the existing HDDTs and mitigate their impacts on communities are needed. Many studies have shown the promise of intelligent transportation systems (ITS) technologies in reducing the energy consumption and environmental footprint of people and goods movement through various means. This research is aimed at developing and evaluating eco-friendly ITS strategies for freight vehicles and traffic, with a focus on strategies that are applicable to the transportation systems in the South Coast Air Basin. Four specific strategies are examined in this research, including: 1) connected eco-driving, 2) truck eco-routing, 3) integrated traffic control, and 4) intelligent parking assist. This report describes the evaluation of each strategy, discusses results, and provide recommendations for future implementation. View the NCST Project Webpage |
| Keywords: | Engineering, Heavy-duty trucks, freight movement, intelligent transportation systems, traffic, emissions |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7262s64x&r= |
| By: | Raghunandan, Aneesh; Rajgopal, Shiva |
| Abstract: | Investment funds that claim to focus on socially responsible stocks have proliferated in recent times. In this paper, we verify whether ESG mutual funds actually invest in firms that have stakeholder-friendly track records. Using a comprehensive sample of self-labelled ESG mutual funds (as identified by Morningstar) in the United States from 2010 to 2018, we find that these funds hold portfolio firms with worse track records for compliance with labor and environmental laws, relative to portfolio firms held by non-ESG funds managed by the same financial institutions in the same years. Relative to other funds offered by the same asset managers in the same years, ESG funds hold stocks that are more likely to voluntarily disclose carbon emissions performance but also stocks with higher carbon emissions per unit of revenue. Despite these findings, ESG funds hold portfolio firms with higher average ESG scores. We show that ESG scores are correlated with the quantity of voluntary ESG-related disclosures but not with firms’ compliance records or actual levels of carbon emissions. Finally, ESG funds appear to underperform financially relative to other funds within the same asset manager and year, and to charge higher fees. Our findings suggest that socially responsible funds do not appear to follow through on proclamations of concerns for stakeholders. |
| Keywords: | social responsibility; ESG; SEC; environmental and labor laws; mutual fund; violation tracker; Springer deal |
| JEL: | M14 G23 G34 M41 |
| Date: | 2022–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115234&r= |
| By: | Fabienne Cantner; Nico Nachtigall; Lisa S. Hamm; Andrea Cadavid Isaza; Lennart Adenaw; Allister Loder; Markus B. 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 second report, we update the information on study participation, provide first insights on the smartphone app usage as well as insights on the first wave results, particularly on the 9 EUR-ticket purchase intention. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.10510&r= |
| By: | Michelle Limenta (Universitas Pelita Harapan); Lili Yan Ing (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | Local content requirement is one of the policy measures used by many countries around the globe, including Indonesia, to protect and support their strategic sectors. This paper assesses Indonesia’s local content regulations in the energy, telecommunication devices, pharmaceutical, and modern retail sectors that are deemed problematic by certain Word Trade Organization (WTO) Members in light of Indonesia’s obligations under the multilateral trade rules. |
| Keywords: | WTO, Indonesia, LCRs, Protection |
| JEL: | F1 F13 |
| Date: | 2022–01–07 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2021-47&r= |
| By: | Han, Fei; Zhou, Jiehong; Yan, Zhen; Yin, Shijiu |
| Keywords: | Institutional and Behavioral Economics, Research Methods/Statistical Methods, Marketing |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322228&r= |
| By: | John Caramichael; Andreas Rapp |
| Abstract: | We study a global panel of green and conventional bonds to assess the borrowing cost advantage at issuance for green bond issuers. We find that, on average, green bonds have a yield spread that is 8 basis points lower relative to conventional bonds. This borrowing cost advantage, or greenium, emerges as of 2019 and coincides with the growth of the sustainable asset management industry following EU regulation. Within this context, we find that the greenium is linked to two proxies of demand pressure, bond oversubscription and bond index inclusion. Moreover, while green bond governance appears to matter for the greenium, the credibility of the underlying projects does not have a significant impact. Instead, the greenium is unevenly distributed to large, investment-grade issuers, primarily within the banking sector and developed economies. These findings have implications for the role of green bonds in incentivizing meaningful green investments throughout the global economy. |
| Keywords: | Green bonds; Corporate bonds; Green finance; Sustainable finance; Climate finance; Green bond premium; Bond issuance |
| JEL: | C33 G15 G18 G23 G28 Q54 Q56 |
| Date: | 2022–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgif:1346&r= |
| By: | Heather M. Anderson; Jiti Gao; Guido Turnip; Farshid Vahid; Wei Wei |
| Abstract: | The 2011 Clean Energy Act sought to align Australia's carbon pricing to the 2005 European Union Emission Trading Scheme (EU-ETS) by 2015, but this act was repealed in 2014. We estimate the hypothetical impact of Australia adopting an emissions trading policy in 2005, which corresponds with the establishment of the EU-ETS. We use a synthetic treatment approach that constructs a counterfactual measure of Australian carbon emissions that makes use of the time series properties of pre-2005 and post-2005 emissions in European countries. We find that Australian per-capita carbon emissions would have been lower by about 4.5% as a result of the policy -- a result that is robust to several variations of our methodology. |
| Keywords: | carbon emissions, climate change, common trends, mitigation policy, synthetic treatment |
| JEL: | C32 H23 Q53 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:msh:ebswps:2022-12&r= |
| By: | Céline Antonin (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Elliot Aurissergues (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Christophe Blot (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Magali Dauvin (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Amel Falah (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Sabine Le Bayon (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Pierre Madec (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Catherine Mathieu (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Hervé Péléraux (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Mathieu Plane (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Christine Rifflart (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Raul Sampognaro (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Paul Malliet (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | L'activité économique mondiale a progressé rapidement en 2021 permettant de combler en partie la chute qui avait été observée en 2020. Pourtant, à peine remise de la pandémie de Covid-19, l'économie mondiale doit faire face à une nouvelle série de chocs. La résurgence de l'inflation observée à partir de l'été dernier en est le premier symptôme. Elle est d'abord liée à l'écart entre l'offre et la demande de produits énergétiques, ce qui a eu pour conséquence de faire grimper non seulement le prix du pétrole mais également celui du gaz et des biens alimentaires. Malgré l'amélioration de la situation sanitaire, le virus circule toujours entraînant des dysfonctionnements dans les chaînes de production. Il en résulte des difficultés d'approvisionnement qui alimentent également les tensions sur les prix. Depuis février, l'invasion de l'Ukraine par la Russie est venue amplifier le risque d'un ralentissement économique mondial, en amplifiant l'augmentation des prix énergétiques et alimentaires. Ce conflit s'accompagne de tensions géopolitiques qui ont fortement accru l'incertitude en raison des menaces d'extension du conflit ou de l'escalade des sanctions. Ainsi, outre les ménages qui souffrent de pertes de pouvoir d'achat, les entreprises pourraient se montrer plus réticentes à investir au cours des prochains mois. Même si les gouvernements prennent des mesures pour amortir l'impact de la hausse des prix, la sortie du « Quoi qu'il en coûte » se traduit par la réduction des déficits publics. Quant aux banques centrales, leur soutien ne peut plus être assuré dès lors que l'inflation dépasse largement leur cible. Elles ont même soit amorcé, soit annoncé, un resserrement de la politique monétaire. Dans le contexte actuel, ces décisions contribueraient au recul de la demande. En France, la hausse des prix de l'énergie contribuerait à accroître l'inflation de 1,9 point en moyenne en 2022. Hors bouclier tarifaire et remise de 15 centimes hors taxe sur le litre de carburant, la contribution de l'énergie à l'inflation aurait été de 4 points en 2022. Hors mesures budgétaires spécifiques, le choc énergétique lié au pétrole, au gaz et à l'électricité aurait amputé la croissance française de 1,3 point de PIB en 2022. En tenant compte de la réponse budgétaire, l'impact du choc énergétique serait réduit à -0,7 point de PIB, soit quasiment de moitié. L'ensemble des nouveaux chocs (prix de l'énergie, vague Omicron, difficultés d'approvisionnement, incertitudes géopolitiques, remontée des taux) affectant l'économie française amputerait le PIB de 2,3% en 2022 mais les nouvelles mesures budgétaires mises en place pour y répondre permettraient de compenser les chocs, notamment le choc énergétique, à hauteur de 0,8% du PIB. A l'aune de ces nouveaux chocs, nous avons révisé notre prévision de croissance pour la France de 4,2% à 2,7% en 2022. Après un premier trimestre de stagnation du PIB, la croissance s'établirait à 0,2% au deuxième trimestre, puis évoluerait à un rythme de 0,3% aux troisième et quatrième trimestres 2022. À la fin de l'année 2022, la croissance du PIB de la France, en glissement annuel, serait de 0,7%, avec un acquis pour l'année 2023 de seulement 0,4%. |
| Keywords: | économie mondiale,inflation,situation sanitaire,augmentation des prix,banques centrales,politique monétaire |
| Date: | 2022–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03697275&r= |
| By: | Burke, Andrew; Fulton, Lewis |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2022–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt22z8260f&r= |
| By: | Elkerbout, Milan |
| Abstract: | The EU may distribute free ETS allowances worth hundreds of billions of euros over the next two decades. This policy brief proposes an addition to free allocation rules, so that the free ETS allowances given to industry can be turned into innovation aid for very low-carbon producers, thereby helping companies transition to climate neutrality. Free allowances exist to mitigate carbon leakage risk, but current rules can put innovative climate neutral producers at a disadvantage vis-à-vis the carbon-intensive incumbents with which they need to compete. While the EU’s proposed carbon border adjustment mechanism would gradually reduce free allocation, many sectors may be excluded from this new mechanism at first, while transitional periods also result in continued free allocation to large industry sectors. Therefore, ensuring that free allocation (to the extent that it continues) benefits, and not harms, very low-carbon producers is important. In summary, the key points and recommendations discussed within this policy brief are: - ETS free allocation could in part actively support low- and zero-carbon production by introducing a new ‘zero-carbon’ benchmark. - The zero-carbon benchmark would reward zero-carbon producers with additional free EU ETS allowances (EUAs), to (partly) cover their investment costs. The zero-carbon benchmarks can then be defined by applying a multiplication factor to existing benchmark values (e.g. 1.5 or 2.0). Every tonne of climate-neutral goods a producer puts on the market would be rewarded by this higher benchmark. - No additional free allowances are needed (the existing cross-sectoral correction factor would still apply). The available supply of EUAs would simply be redistributed in such a way that it benefits very low-carbon producers, so long as they produce climate neutral goods. |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:eps:cepswp:35063&r= |
| By: | Fabienne Cantner; Geske Rolvering |
| Abstract: | To study how different economic information affect people’s perceptions and attitudes towards carbon prices, we conduct an online survey experiment in a representative sample of the German voting population. We find that providing information about the efficiency of carbon prices as well as on international emission levels and carbon price initiatives changes people’s perceptions and their support. Information about the possibility and benefits of revenue recycling, however, only affect the views of very specific subgroups of the population, such as individuals with low income or high trust in the government. Moreover, we find that none of the information affects the perceptions and support of climate change skeptics. |
| Keywords: | climate change, climate policies, carbon pricing, information, survey experiment |
| JEL: | D72 D83 D91 H23 Q58 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:bav:wpaper:219_cantnerrolvering&r= |
| By: | S. Roderick Zhang; Bilal Farooq |
| Abstract: | To help systematically lower anthropogenic Greenhouse gas (GHG) emissions, accurate and precise GHG emission prediction models have become a key focus of the climate research. The appeal is that the predictive models will inform policymakers, and hopefully, in turn, they will bring about systematic changes. Since the transportation sector is constantly among the top GHG emission contributors, especially in populated urban areas, substantial effort has been going into building more accurate and informative GHG prediction models to help create more sustainable urban environments. In this work, we seek to establish a predictive framework of GHG emissions at the urban road segment or link level of transportation networks. The key theme of the framework centers around model interpretability and actionability for high-level decision-makers using econometric Discrete Choice Modelling (DCM). We illustrate that DCM is capable of predicting link-level GHG emission levels on urban road networks in a parsimonious and effective manner. Our results show up to 85.4% prediction accuracy in the DCM models' performances. We also argue that since the goal of most GHG emission prediction models focuses on involving high-level decision-makers to make changes and curb emissions, the DCM-based GHG emission prediction framework is the most suitable framework. |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2206.09073&r= |
| By: | Ernst, Anne; Hinterlang, Natascha; Mahle, Alexander; Stähler, Nikolai |
| Abstract: | In a dynamic, three-region environmental multi-sector general equilibrium model (called EMuSe), we find that carbon pricing generates a recession initially as production costs rise. Benefits from lower emissions damage materialize only in the medium to long run. A border adjustment mechanism mitigates but does not prevent carbon leakage, but it 'protects' dirty domestic production sectors in particular. From the perspective of a region that introduces carbon pricing, the downturn is shorter and long-run benefits are larger if more regions levy a price on emissions. However, for non-participating regions, there is no incremental incentive to participate as they forego trade spillovers from carbon leakage and face higher production costs along the transition. In the end, they may be better off not participating. Because of the costly transition, average world welfare may fall as a result of global carbon pricing unless 'the rich' assist 'the poor'. |
| Keywords: | Carbon Pricing,Border Adjustment,Climate Clubs,International Dynamic General Equilibrium Model,Sectoral Heterogeneity,Input-Output Matrix |
| JEL: | E32 E50 E62 H32 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:252022&r= |
| By: | Ruben Bibas (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); C. Cassen (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); Renaud Crassous; 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); Meriem Hamdi-Cherif (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); Jean Charles Hourcade (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); Florian Leblanc (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); Aurélie Méjean (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); Eoin Ó Broin (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); Julie Rozenberg; Olivier Sassi; Adrien Vogt-Schilb; Henri-David Waisman |
| Date: | 2022–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03702627&r= |
| By: | Csonka, Steve |
| Keywords: | Agribusiness, Environmental Economics and Policy |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:ags:usao22:321099&r= |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Ojong, Nathanael |
| 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 I31 O11 O43 O55 Q01 Q43 Q56 |
| Date: | 2022–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:113604&r= |
| By: | Khondaker Golam Moazzem; Abdullah Fahad; Shah Md. Ahsan Habib |
| Abstract: | While Bangladesh’s energy scenario has been historically dominated by natural gas assuming that Bangladesh will never face a shortage in natural gas production, the local natural gas production started decreasing after 2016 and is likely to decrease even more in the coming years. Increasing demand for gas and decreasing local production led Bangladesh to import Liquefied Natural Gas (LNG) in 2018. Power plants account for the major share of the gas consumed in Bangladesh. This study estimates the economic costs of the LNG supply chain considering the power plant as an end customer in Bangladesh for the fiscal years 2019 to 2021. A supply chain was identified to estimate the economic costs of LNG in Bangladesh based on the data collected from relevant government agencies. It was found that per unit LNG import cost, was about 24 times that of the national company production. Environmental emissions associated with the imported LNG were also estimated in the study based on literature. LNG life cycle emissions indicate that LNG is not that of improvement from other fossil fuels. The study concludes that to meet the existing gas demand of Bangladesh currently there are no alternatives to LNG import, but, considering LNG as a long-term solution going to cost the country gravely. |
| Keywords: | LNG Gas, Liquefied Natural Gas, Natural gas, LNG import |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:144&r= |
| By: | Billio, Monica; Costola, Michele; Pelizzon, Loriana; Riedel, Max |
| Abstract: | Energy efficiency represents one of the key planned actions aiming at reducing greenhouse emissions and the consumption of fossil fuel to mitigate the impact of climate change. In this paper, we investigate the relationship between energy efficiency and the borrower's solvency risk in the Italian market. Specifically, we analyze a residential mortgage portfolio of four financial institutions which includes about 70,000 loans matched with the energy performance certificate of the associated buildings. Our findings show that there is a negative relationship between a building's energy efficiency and the owner's probability of default. Findings survive after we account for dwelling, household, mortgage, market control variables, and regional and year fixed effect. Additionally, a ROC analysis shows that there is an improvement in the estimation of the mortgage default probability when the energy efficiency characteristic is included as a risk predictor in the model. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:352&r= |
| By: | Mohiuddin, Hossain; Fitch, Dillon; Handy, Susan |
| Abstract: | Bike-share systems are proliferating across the US and could expand opportunities for those most underserved by the transportation system. A deeper understanding of current bike-share users could enable the expansion of these services and their benefits to a larger population. With the aim of deepening this understanding, this study uses data from household and bike-share user surveys in the Sacramento region to perform behavioral modeling and market segmentation. The results show that although individuals with low incomes and students are less likely than other demographic groups to use bike-share, they use it more frequently if they do use it. Individuals who regularly use multiple modes of travel also use the service frequently. The initial adoption of the service by transport-disadvantaged groups can play a vital role in the continued and frequent use of the service. The market segmentation analysis shows that low-income individuals, students, and zero-car individuals use the service frequently for commuting and a variety of non-commuting purposes. The occasional users of the bike-share service are mainly those with higher incomes and individuals who have access to a personal car. Another market segment consists of non- and infrequent-personal bike users; however, that segment is using the bike-share service at a greater rate for different purposes compared to regular bicyclists. This suggests that bike-share may fill an important travel gap and act as a lever for increasing bike travel for some users. Overall, the results provide detailed bike-share market information that can be used to tailor urban transport policies. The results also suggest that if the user base for bike-share programs were expanded to reach even more low-income individuals, students, and multi-modal travelers, greater environmental sustainability benefits would be achieved. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Bicycles, vehicle sharing, bicycle travel, scooters |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt71h6g0td&r= |
| By: | Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | The purpose of this paper is to critically examine the multinational oil companies’ corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on gender sensitive responses to climate change in oil host communities in Nigeria. This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 1200 rural women were sampled across the Niger Delta region. The results from the use of a combined propensity score matching and logit model indicate a significant relationship between GMoU model and women, gender and climate change in the Niger Delta Nigeria. This implies that CSR of a multinational oil companies is a critical factor in the need for gender sensitive responses to the effect of climate change. It suggests that, for adaptation to climate change effects, understanding gender dimensions and taking gender responsive steps be incorporated into GMoU policies and action plans of multinational enterprises. This research contributes to gender debate in climate change from a CSR perspective in developing countries and rationale for demands for social projects by host communities. It concludes that business has an obligation to help in solving problems of public concern. |
| Keywords: | Climate change, Gender equality, Corporate social responsibility, Multinational oil companies, sub-Saharan Africa |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/041&r= |
| By: | Sondès Kahouli (UMR AMURE – Université de Bretagne Occidentale); Xavier Pautrel (GRANEM & TEPP) |
| Abstract: | This paper shows that accounting for the growing interdisciplinary literature supporting the causality between energy efficiency and health and the empirical evidence re-assessing the importance of health in workforce productivity, could explain a part of the paradoxal relationship found between energy efficiency and energy consumption. We build a 3-period overlapping generations model where we assume that residential energy inefficiency induces chronic disease for adults and bad health for elderly. We also assume that workers’ health has an effect of their labor productivity. Our results suggest, in particular, that if mostly old (respectively young) people health is affected, the health impact of residential energy efficiency should have a backfire (resp. rebound) influence on residential energy consumption, by promoting precautionary saving (resp. by rising labor productivity). In policy terms, by showing that the link between energy efficiency and energy consumption is far from being just associated with technical conditions about preferences and/or production technology, our research emphasizes how crucial and complex are for governments the discussion and policy action dealing with the connection between energy conservation policies, health insurance system and growth. |
| Keywords: | Energy, Health, Precautionary saving, Labor productivity, Overlapping generations model |
| JEL: | D58 Q43 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2022.04&r= |
| By: | Boneva, Lena; Ferrucci, Gianluigi |
| Abstract: | Climate change is increasingly affecting the objective, conduct and transmission of monetary policy. Yet, climate-related shocks and trends are still generally absent from the canonical models used by central banks for their policy analysis and forecasting. This briefing paper reviews the potential pitfalls of using a modelling framework that omits climate-related information and provides some reflections on how central banks can integrate climate change considerations into their ‘workhorse’ models. This includes: accounting for an explicit role of the energy sector in the production structure and for specific climate change policies; improving the ability of models to cope with various sources of heterogeneity; and incorporating a more realistic representation of the financial sector, to analyse the possible stranding of assets and impairments in the transmission mechanism of monetary policy. It argues that a ‘suite-of-models’ strategy is a promising approach for central banks to cope with the climate challenge when designing a new generation of models. To complement theory with practice, several examples of central banks that have already integrated climate-related information into their analytical frameworks are provided. The paper concludes with some specific recommendations. |
| JEL: | F3 G3 J1 |
| Date: | 2022–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:115533&r= |
| By: | Zhaojia Huang; Liang Zhang; Tianhao Zhi |
| Abstract: | There is a rapid development and commercialization of new Energy Vehicles (NEV) in recent years. Although traditional fuel vehicles (TFV) still occupy a majority share of the market, it is generally believed that NEV is more efficient, more environmental friendly, and has a greater potential of a Schumpeterian "creative destruction" that may lead to a paradigm shift in auto production and consumption. However, less is discussed regarding the potential environmental impact of NEV production and future uncertainty in R&D bottleneck of NEV technology and innovation. This paper aims to propose a modelling framework based on Lux (1995) that investigates the long-term dynamics of TFV and NEV, along with their associated environmental externality. We argue that environmental and technological policies will play a critical role in determining its future development. It is of vital importance to constantly monitor the potential environmental impact of both sectors and support the R&D of critical NEV technology, as well as curbing its negative externality in a preemptive manner. |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2207.03672&r= |
| By: | Nick Robins; James Rydge; Nicholas Stern; Sam Unsworth; Anna Valero; Dimitri Zenghelis |
| Abstract: | The UK and the world have suffered disruption and hardship from the COVID-19 pandemic on an immense scale. Together with the tragic consequences of the health crisis, there is now a real risk of protracted global depression. Strong and timely action can increase confidence, steer expectations and channel productive private and public investment into a sustainable, inclusive and resilient recovery across the UK. |
| Keywords: | Covid-19, sustainable recovery, investment, productivity, infrastructure, net zero greenhouse emissions, 'building back better', uk economy |
| Date: | 2020–07–02 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcvd:cepcovid-19-005&r= |
| By: | Matthew E. Kahn; Somik Lall |
| Abstract: | As billions of people in the developing world seek to increase their living standards, their aspirations pose a challenge to global efforts to cut greenhouse gas emissions. The emerging middle class are buying and operating energy intensive durables ranging from vehicles to air conditioners to computers. Owners of these durables represent an interest group with a stake in opposing carbon pricing. The political economy of encouraging middle class support for carbon pricing hinges on offsetting its perceived negative income effects. Rising environmentalism in the developing world could also increase support for credible GHG reduction policy. We quantify these effects as we estimate Engel curves of durables ownership, compare the grid’s carbon intensity by nation and study the demographic correlates of support for prioritizing environmental protection. |
| JEL: | H23 H87 Q54 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30238&r= |
| By: | Frédéric Reynés (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Meriem Hamdi-Cherif (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Gissela Landa (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Paul Malliet (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); Alexandre Tourbah |
| Abstract: | L'objectif de ce Policy brief est de faire le diagnostic des politiques de lutte contre le changement climatique en France et de mettre en avant les grands chantiers nécessaires. Nous revenons d'abord sur les performances de la France en matière de baisse des émissions de gaz à effet de serre. Bien que des efforts soient engagés, les politiques mises en oeuvre sont en retard par rapport à l'objectif de la neutralité carbone à l'horizon 2050. Au rythme de baisse des émissions des 10 dernières années, cet objectif ne serait atteint qu'en 2130. Il est donc primordial dès le prochain quinquennat de relancer concrètement la politique environnementale de la France. Pour mettre la France sur une trajectoire de décarbonation ambitieuse et réaliste, deux stratégies sont souvent opposées. La première repose sur les évolutions technologiques tandis que la seconde s'appuie sur la sobriété énergétique. Nous montrons au contraire la complémentarité des deux approches qui ont chacune leurs incertitudes : pari technologique versus pari de la modification des comportements. Le point commun de toute stratégie compatible avec la neutralité carbone en 2050 est qu'un effort significatif à mettre en oeuvre sans délai est nécessaire. Un enjeu important de l'élection présidentielle est de trancher démocratiquement sur quoi doit porter cet effort et sur les instruments à privilégier : inciter à des modes de consommation plus sobres, investir massivement dans des modes de production d'énergie décarbonée, faire des choix technologiques, etc. Cela nous amène à discuter des avantages et des inconvénients des principaux instruments économiques (prix du carbone, subventions, investissements publics, normes, sensibilisations) dont disposent les décideurs politiques pour mettre en oeuvre la transition bas carbone. Nous en tirons plusieurs conclusions. Aucun instrument n'étant parfait, la politique environnementale nécessite de s'appuyer sur une combinaison d'instruments et donc d'être pensée dans sa globalité. Le manque de considération des questions d'acceptabilité et de justice sociale sont des éléments clé pour expliquer les blocages autour des politiques de lutte contre le changement climatique. Nous proposons deux pistes pour relancer les politiques environnementales : Améliorer la transparence autour des prix du carbone (explicites ou implicites) payés par les différents agents. Cela passe par une réforme fiscale qui convertisse explicitement les taxes énergétiques en fiscalité carbone. Cela faciliterait la comparaison des dispositifs existants (fiscalité, marchés de quotas, ou normes) et donc les efforts des différents agents dans la lutte contre le changement climatique ; Structurer la politique économique autour de la question climatique et de la réalisation de la neutralité carbone à l'horizon 2050. Cela pourrait passer par la fusion des ministères de l'Économie et des finances avec celui de la Transition écologique, comme cela s'est fait aux Pays-Bas et en Allemagne. Ceci permettrait de faciliter la mise en oeuvre des grands chantiers économiques liés aux politiques environnementales : politiques d'investissements, de planification, ou industrielles, mais également de redistribution et de soutien aux différents acteurs, ménages et entreprises exposés. Cette fusion doit aller de pair avec le renforcement des conseils indépendants d'évaluation et de recommandation, comme le Haut-Conseil pour le climat. |
| Keywords: | environnement,politique économique,réforme fiscale,changement climatique |
| Date: | 2022–02–25 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03700011&r= |
| By: | Aldy, Joseph E.; Atkinson, Giles; Kotchen, Matthew J. |
| Abstract: | The United States and United Kingdom have long-standing traditions in the use of environmental benefit-cost analysis (E-BCA). While there are similarities between how EBCA is utilized, there are significant differences too, many of which mirror ongoing debates and recent developments in the literature on environmental and natural resource economics. We review the use of E-BCA in both countries across three themes: (a) the role of long-term discounting, (b) the estimation and use of carbon valuation, and (c) the estimation and use of the value of a statistical life. In each case, we discuss how academic developments are (and are not) translated into practical use and draw comparative lessons. We find that, in some cases, practical differences in E-BCA can be overstated, although in others these seem more substantive. Advances in the academic frontier also raise the question of when and how to update practical E-BCA, with very different answers across our themes. |
| Keywords: | benefit-cost analysis; social cost of carbon; social discount rate; value of statistical life; regulatory impact analysis |
| JEL: | H43 Q51 Q54 Q58 |
| Date: | 2021–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:110879&r= |