nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒08‒29
fifty-nine papers chosen by
Roger Fouquet
London School of Economics

  1. Climate, Technology and Value: Insights from the First Decade with Mass-Consumption of Electric Vehicles By Gøril L. Andreassen; Jo Thori Lind
  2. More Public Charging Infrastructure Alone Will Not Increase Electric Vehicle Sales By Hoogland, Kelly; Kurani, Kenneth S. PhD; Hardman, Scott PhD; Chakraborty, Debapriya PhD; Davis, Adam W. PhD
  3. How Do Consumers Become Aware of Electric Vehicles? A Qualitative Approach By Meckler-Pacheco, Alma
  4. Decarbonizing the Industry Sector and its Effect on Electricity Transmission Grid Operation - Implications from a Model Based Analysis for Germany By Lieberwirth, Martin; Hobbie, Hannes
  5. Flexibility and risk transfer in electricity markets By Crampes, Claude; Renault, Jérôme
  6. Distributional neural networks for electricity price forecasting By Grzegorz Marcjasz; Micha{\l} Narajewski; Rafa{\l} Weron; Florian Ziel
  7. Carbon Pricing, Clean Electricity Standards, and Clean Electricity Subsidies on the Path to Zero Emissions By Severin Borenstein; Ryan Kellogg
  8. Utilizing Nanoscale Particulate Matter from the Combustion of Diesel Fuels as a Carbonaceous Anode Electrode for Li-ion Batteries By Cronin, Stephen B
  9. Price cap versus tariffs: The case of the EU-Russia gas market By Ehrhart, Karl-Martin; Schlecht, Ingmar; Wang, Runxi
  10. Fossil and Renewable Energy Stock Indices: Connectedness and the COP Meetings By Guglielmo Maria Caporale; Nicola Spagnolo; Awon Almajali
  11. Green Factor Influence on the Yield of Stocks and Bonds in the Russian Financial Market By Yulia Vymyatnina; Aleksandr Chernykh
  12. Results of the First Market Functioning Survey concerning Climate Change - Progress in the Improvement of Market Functioning and Challenges for the Future - By Financial Markets Department
  13. Managing climate change risk: a responsibility for politicians not Central Banks By Ozili, Peterson K
  14. Cooking fuels’ choice, women’s health and CO2 emissions in selected rural West African countries By Egbendewe, Aklesso Y. G.; Yevesse, Dandonougbo
  15. Polluting and modern cooking fuel frequency use by urban households in Uganda By Florkowski, Wojciech J.; Neupane, Sulakshan
  16. Does pollution perception lead to risk avoidance behaviour? A mixed methods analysis By Pierre Levasseur; Katrin Erdlenbruch; Christelle Gramaglia; Sofia Bento; Lúcia Fernandes; Pedro Baños Páez
  17. ITF North and Central Asia Transport Outlook By ITF
  18. Changing times - Incentive regulation, corporate reorganisations, and productivity in Great Britain’s gas networks By Victor Ajayi; Michael Pollitt
  19. The Italian coal shortage: the price of import and distribution, 1861-1911 By Vania Licio
  20. Fighting Climate Change: International Attitudes Toward Climate Policies By Antoine Dechezleprêtre; Adrien Fabre; Tobias Kruse; Bluebery Planterose; Ana Sanchez Chico; Stefanie Stantcheva
  21. Ticket to Paradise? The Effect of a Public Transport Subsidy on Air Quality By Niklas Gohl; Philipp Schrauth
  22. French Optimal and Robust Trade Policies Under Carbon Footprint Reduction Constraint and Uncertainties By Julien Ancel; Théo Mandonnet; Michel de Lara
  23. How Dependent Is Germany on Raw Material Imports? An Analysis of Inputs to Produce Key Technologies By Lisandra Flach; Isabella Goruevich; Leif Grandum; Lisa Scheckenhofer; Feodora Teti; Isabella Gourevich
  25. Are environmental fiscal incentives effective in inducing energy-saving renovations? An econometric evaluation of the French energy tax credit By Anna Risch
  26. Not all political relation shocks are alike: Assessing the impacts of US-China tensions on the oil market. By Yifei Cai; Valérie Mignon; Jamel Saadaoui
  27. ITF Southeast Asia Transport Outlook By ITF
  28. Trade, Leakage, and the Design of a Carbon Tax By David Weisbach; Samuel S. Kortum; Michael Wang; Yujia Yao
  29. The Impact of ESG Performance on the Financial Performance of European Area Companies: An Empirical Examination By Phoebe Koundouri; Nikitas Pittis; Angelos Plataniotis
  30. Das Wärme- & Wohnen-Panel zur Analyse des Wärmesektors: Ergebnisse der ersten Erhebung aus dem Jahr 2021 By Frondel, Manuel; Gerster, Andreas; Kaestner, Kathrin; Pahle, Michael; Schwarz, Antonia; Singhal, Puja; Sommer, Stephan
  31. The Effect of Diesel Tax Rates on the Daily Commuting of US Workers: An Effective Instrument to Promote Sustainable Mobility? By Belloc, Ignacio; Gimenez-Nadal, J. Ignacio; Molina, José Alberto
  32. Green growth and net zero policy in the UK: some conceptual and measurement issues By Victor Ajayi; Michael Pollitt
  33. Estimation approches for materials demand, recycling and substitution using the Poles model By Kimon Keramidas; Silvana Mima; Adrien Bidaud
  34. ITF South and Southwest Asia Transport Outlook By ITF
  35. The gasoline price and the commuting behavior: Towards sustainable modes of transport By Belloc, Ignacio; Giménez-Nadal, José Ignacio; Molina, José Alberto
  36. The regional green potential of the European innovation system By SBARDELLA Angelica; BARBIERI Nicolò; CONSOLI Davide; NAPOLITANO Lorenzo; PERRUCHAS François; PUGLIESE Emanuele
  37. Central African Economic and Monetary Community: Common Policies in Support of Member Countries Reform Programs-Staff Report, and Statement by the Executive Director By International Monetary Fund
  38. Effects of Power Plants on Local Residents' Wealth: A Case Study of Nigeria By Akinyemi, Taiwo; Jung, Suhyun
  39. Climate Change Mitigation: How Effective Is Green Quantitative Easing? By Raphael Abiry; Marien Ferdinandusse; Alexander Ludwig; Carolin Nerlich
  40. Food-fuel nexus beyond mean-variance: New evidence from a quantile approach By Wang, Linjie; Li, Jian; Etienne, Xiaoli L.
  41. Integrating the carbon footprint into the construction of corporate bond portfolios By Mario Bajo; Emilio Rodríguez
  42. On Market Clearing of Day Ahead Auctions for European Power Markets: Cost Minimisation versus Social Welfare Maximisation By Ioan Alexandru Puiu; Raphael Andreas Hauser
  43. The Impact of Climate Change on Mortality in the United States: Benefits and Costs of Adaptation By Olivier Deschenes
  44. Can Rebates Foster Equity in Congestion Pricing Programs? By Sallee, James M.; Tarduno, Matthew A.
  45. Role of Advance Notice on High-priced Hours: Critical peak pricing on industrial demand By ISOGAWA Daiya; OHASHI Hiroshi; ANAI Tokunari
  46. Estimating Medium-run Direct Rebound Effects of the Footprint-based CAFE Standard By Matsushima, Hiroshi; Khanna, Madhu
  47. Transboundary aquifers By Ringler, C.; Belete, A. A.; Mathetsa, S. M.; Uhlenbrook, Stefan
  48. Promoting Green Entrepreneurship in Morocco as a Roadmap to Sustainable Development: A literature Review By Mohamed Elmoukhtar; Fatima Touhami; Othmane Taouabit; Imane Mouhtat
  49. Temporary Super Depreciation Allowances for Green and Digital Investments By Michael Funke; Raphael Terasa
  50. Industry Compliance Costs Under the Renewable Fuel Standard: Evidence from Compliance Credits By Wardle, Arthur R.; Akhundjanov, Sherzod B.
  51. Germany: 2022 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Germany By International Monetary Fund
  52. Recycling Diesel Soot Particles for Use as Activated Carbon in Li Ion Batteries By Cronin, Stephen B
  53. Sectoral dynamics of industrial production in 2021 By Kaukin Andrey; Miller Evgenia
  54. Thinking macroeconomic vulnerabilities in the context of low-carbon transition By Alvaro MORENO; Diego GUEVARA; Jhan ANDRADE; Christos PIERROS; Antoine GODIN; Devrim YILMAZ; Sebastian VALDECANTOS
  55. Whose jobs face transition risk in Alberta? Understanding sectoral employment precarity in an oil-rich Canadian province By Scheer, Antonina; Schwarz, Moritz; Hopkins, Debbie; Caldecott, Ben
  56. Implementing the ASEAN Fuel Economy Roadmap By ITF
  57. Adverse Selection as a Policy Instrument: Unraveling Climate Change By Steve Cicala; David Hémous; Morten G. Olsen
  58. Does Environmental Quality Affect Education? Evidence from air quality and school attendance in the United States By Aziz, Mustahsin; Elbakidze, Levan
  59. En graphiques : comprendre la précarité énergétique en France By Adèle Sébert

  1. By: Gøril L. Andreassen; Jo Thori Lind
    Abstract: We investigate empirically whether the market value of electric vehicles, which have rapid technological progress, decline faster over their lifetime than gasoline vehicles, which is a mature technology. We use novel data from the market with the highest market shares for electric vehicles in the world, Norway, from the largest web platform for secondhand vehicles for 2011-2021. The price path of electric vehicles declines faster than gasoline vehicles. This seems to be driven by the electric vehicles with below median driving range. We hypothesize that the large price drop is mainly due to the fast technological improvement of electric vehicles.
    Keywords: energy transition, price, technological progress, low-carbon technologies, electric vehicles, secondhand market, climate policy
    JEL: D12 L60 L62 O33 Q55
    Date: 2022
  2. By: Hoogland, Kelly; Kurani, Kenneth S. PhD; Hardman, Scott PhD; Chakraborty, Debapriya PhD; Davis, Adam W. PhD
    Abstract: Plug-in electric vehicles (PEVs), including battery electric vehicles and plug-in hybrid electric vehicles, are an important technology for decarbonizing transportation and reducing urban air pollution. A lack of public charging infrastructure is frequently cited as a primary barrier to continued, widespread PEV market growth. Public and private stakeholders are investing in public charging infrastructure, in part because they hope the presence of more infrastructure will encourage consumers to purchase PEVs. However, public charging infrastructure can only affect PEV sales if people—especially those who are not already PEV owners—see it, and by seeing it become more likely to consider purchasing a PEV. Researchers at UC Davis examined this relationship. They used data from a survey administered in the first quarter of 2021 of approximately 3,000 California car-owning residents, as well as data on PEV registrations and public charger locations. They modeled the relationships between multiple variables.
    Keywords: Engineering
    Date: 2022–08–01
  3. By: Meckler-Pacheco, Alma
    Abstract: Despite electric vehicles accounting for a growing share of new vehicles sales, previous studies have shown that consumers are not substantially engaged in the transition to plug-in electric vehicles (PEVs). Advertising, federal and state purchase incentives, and outreach events such as ride and drives may not be effectively engaging consumers to consider purchasing a PEV. This study seeks to understand how consumers first becoming aware of electric vehicles. We investigate 35 interviews conducted in 2019 with Tesla vehicle owners in California. The results show that word of mouth sources such as friends, family and co-workers are a main way interviewees became aware of Tesla vehicles and electric vehicles. Mass media channels of communication such as news articles, books, and the internet are other important sources interviewees reported. The findings provide insight into the resources used by Tesla owners and the ways they become aware of electric vehicles. Understanding the ways consumers become aware of this technology can assist policymakers and relevant stakeholders in increasing electric vehicle sales and ultimately allow for reductions in greenhouse gas emissions from the transportation sector.
    Keywords: Social and Behavioral Sciences
    Date: 2022–07–01
  4. By: Lieberwirth, Martin; Hobbie, Hannes
    Abstract: Integrating large amounts of electrolyzer capacities poses particular challenges for grid operators along the entire hydrogen value chain. This research examines how hydrogen production capacities that support the decarbonization of German industrial sectors impact the electricity transmission grid. The operation of electrolyzer capacities and the production of green hydrogen result in increased electricity demand that stresses the power grids beyond conventional electricity load levels. The question arises to what extent electrolyzer capacities cause additional grid congestion and how flexible operation of electrolyzers can contribute to efficient management of future power grids. A scenario framework is created, differing in the decarbonizing strategy of industry sectors, operation mode of electrolyzers, and penetration levels of electrolyzer installations for a market projection of the future European electricity system. Model-based research is performed by applying a fundamental electricity market and congestion management optimization model of the European electricity systems for the set of scenarios. Results of the model-based investigation highlight the importance of integrating electrolyzer capacities into congestion management practices, primarily if corresponding decarbonized industries feature a more distributed allocation throughout Germany, such as the chemical, paper and printing industries. The findings of this work provide policymakers, system operators, and regulators with meaningful insights for designing future congestion management frameworks.
    Keywords: Electricity,Green hydrogen,Congestion management,Grid modelling,Germany
    JEL: C61 Q41 Q48
    Date: 2022
  5. By: Crampes, Claude; Renault, Jérôme
    Abstract: The producers of electricity using dispatchable plants rely on partially flexible technologies to match the variability of both demand and production from renewables. We analyse upward and downward flexibility in a two-stage decision process where firms compete in quantities produced ex ante at low cost and ex post at high cost to supply a random residual demand. We first compute the first best and competitive outcomes, then we determine the subgame perfect equilibria corresponding to two market designs: one where all trade occurs in a spot market with known demand, the other where a day-ahead market with random demand is added to the ex-post market, first in a general setting, then using a quadratic specification. We show that being inflexible can be more profitable than being flexible. We also show that adding a day-ahead market to the spot market increases welfare but transfers risks from firms to consumers.
    Keywords: flexibility; electricity; market design; risk transfer
    JEL: C72 D24 D47 L23 L94
    Date: 2022–07–28
  6. By: Grzegorz Marcjasz; Micha{\l} Narajewski; Rafa{\l} Weron; Florian Ziel
    Abstract: We present a novel approach to probabilistic electricity price forecasting (EPF) which utilizes distributional artificial neural networks. The novel network structure for EPF is based on a regularized distributional multilayer perceptron (DMLP) which contains a probability layer. Using the TensorFlow Probability framework, the neural network's output is defined to be a distribution, either normal or potentially skewed and heavy-tailed Johnson's SU (JSU). The method is compared against state-of-the-art benchmarks in a forecasting study. The study comprises forecasting involving day-ahead electricity prices in the German market. The results show evidence of the importance of higher moments when modeling electricity prices.
    Date: 2022–07
  7. By: Severin Borenstein; Ryan Kellogg
    Abstract: We categorize the primary incentive-based mechanisms under consideration for addressing greenhouse gas emissions from electricity generation—pricing carbon, setting intensity standards, and subsidizing clean energy—and compare their market outcomes under similar expansions of clean electricity generation. While pricing emissions gives strong incentives to first eliminate generation with the highest social cost, a clean energy standard incentivizes earliest phaseout of the generation with the highest private cost. We show that the importance of this distinction depends on the correlation between private costs and emissions rates. We then estimate this correlation for US electricity generation and fuel prices as of 2019. The results indicate that the emissions difference between a carbon tax and clean energy standard that phase out fossil fuel generation over the same timeframe may actually be quite small, though it depends on fossil fuel prices during the phaseout. We also discuss how each of these policy options is likely to impact electricity prices, quantity demanded, government revenue, and economic efficiency. Large pre-existing markups of retail electricity prices over marginal costs are likely to considerably weaken or even reverse the usual assumed efficiency advantage of carbon pricing policies over alternatives, including direct subsidization of clean electricity generation.
    JEL: L94 Q52 Q54 Q58
    Date: 2022–07
  8. By: Cronin, Stephen B
    Abstract: According to the Environmental Protection Agency’s National Emissions Inventory Report, hundreds of thousands of tons of particulate matter (PM2.5) are released by diesel combustion per year. The toxic PM2.5 air pollution causes serious public health problems and is responsible for millions of worldwide deaths each year. This study investigates the electrochemical energy storage capability of annealed soot PM originating from diesel exhaust. Soot composite electrodes were utilized as anode electrodes and cycled against Li counter electrodes. X-ray diffraction and Raman spectroscopy showed the graphitized carbon structure of the annealed soot particles. The cycle life and rate-capability of the electrodes were investigated via galvanostatic cycling tests. The electrodes exhibited excellent rate performance with discharge capacities of 235, 195, 150, 120, and 80 mAh/g when cycled at rates of 1C, 2C, 5C, 10C, and 20C, respectively. The electrode demonstrated an initial discharge capacity of 154 mAh/g at 4C rate with a capacity retention of almost 77% after 500 cycles. Raman analysis confirms the retention of structural ordering in the soot carbon after 500 cycles. Kinetic analysis, obtained through cyclic voltammetry at different scan rates, indicates pseudocapacitive charging behavior in the soot composite electrode. The study provides a viable pathway towards a sustainable energy-environment by converting an abundant toxic pollutant into a valuable electrode material for Li-ion batteries. View the NCST Project Webpage
    Keywords: Engineering, Physical Sciences and Mathematics, Particulate matter, Pseudocapacitive, Li-ion battery, Diesel soot, Sustainability
    Date: 2022–08–01
  9. By: Ehrhart, Karl-Martin; Schlecht, Ingmar; Wang, Runxi
    Abstract: To counter rising gas prices and corresponding Russian profits, many scholars point to import tariffs on Russian gas as a preferred policy instrument. While this makes sense in the case of oil, for the case of gas we observe the opposite. This is due to the structure of the EU-Russia gas market, where Russia holds a monopoly over the EU’s residual gas demand and the EU, if it would engage in joint procurement, has market power itself potentially acting as monopsony. However, it has not yet chosen to exercise its market power. Under these conditions, an external price cap for Russian gas can be considered to be the more appropriate policy instrument, because a price cap tends to take away economic incentives for Russia to use its market power, increasing gas prices through decreasing supply. Under such circumstances, we show that an external price cap is superior to a tariff in the sense that for any tariff there exists a price cap that makes both the EU and Russia better off. Consequently, the EU can always design a price cap that gives Russia the same welfare (so it is equally likely to accept), but makes the EU better off compared to imposing a tariff.
    Keywords: price cap,Russia,gas market,tariff,sanctions
    Date: 2022
  10. By: Guglielmo Maria Caporale; Nicola Spagnolo; Awon Almajali
    Abstract: This paper investigates static and dynamic connectedness between the first and second moments of fossil and renewable energy stock indices in the last decade at the daily frequency. For this purpose the Diebold and Yilmaz (2014) methodology is applied; in addition, endogenous break tests are carried out and sub-sample estimates are also obtained. The results suggest that renewable energy stock indices play a significant role in terms of connectdness; moreover, the two detected breaks indicate that both the unsuccessful COP17 held in Durban in 2011 and the anticipation of decisive action at the COP26 in Glasgow affected the degree of connectedness. The finding that spillovers are stronger during periods characterised by more effective climate change policies confirms the crucial importance of policy intervention and support for renewable energy to tackle climate change.
    Keywords: COP, fossil and renewable energy, VAR, connectedness
    JEL: C32 G15 Q40
    Date: 2022
  11. By: Yulia Vymyatnina; Aleksandr Chernykh
    Abstract: In this paper we test whether environmental characteristics of assets influence their returns for the case of Russian financial market. Our main hypothesis based on the relevant literature is that if a spread between ``greenÕÕ and ``brownÕÕ assetsÕ yield exists, it should be in favour of the brown assets. We employ relevant econometric models separately for stocks and for bonds. For the stock market we used realized returns and estimated the role of the green factor in the yield using the three-factor Fama-French model. While the resulting coefficient was not significant, on the whole we have observed that the realized return of the climate-risk hedge portfolio had a negative value over a nearly ten-year observation period. We have also demonstrated the applicability of the green factor calculations for estimating the degree of climate risk exposure for individual companies. Using data on a number of green bonds and their chosen ``twinÕÕ bonds, we calculate the difference in the premium in the yield to maturity over that of a similar government bond for all pairs of ``twinÕÕ bonds and proceed to check if this difference is significant, and if it can be attributed to the Greenium factor. We find that over the stable period in Russian financial markets (allowing for the most stable results) ``greenÕÕ bonds have lower yield to maturity Ñ a result that is in line with previous results for other markets and suggests that green financing might be cheaper for companies. On the whole our results suggest that environmental considerations might be relevant in the Russian financial market during stable macroeconomic periods.
    Keywords: ESG, sustainable investing, Greenium, Russia
    JEL: G10 G12
    Date: 2022–08–08
  12. By: Financial Markets Department (Bank of Japan)
    Abstract: As the efforts to tackle climate change accelerate globally in recent years, financial markets are expected to play a greater role in terms of financial intermediation. Specifically, financial markets are expected to support industries' efforts to address climate change by reflecting risks and opportunities arising from climate change (climate-related risks and opportunities) in the prices of financial instruments such as stocks and corporate bonds, providing a more conducive environment for the issuance of ESG bonds related to climate change (hereinafter "the ESG bonds"), thereby facilitating funding and investments. The Bank of Japan has launched the Market Functioning Survey concerning Climate Change with a view to assessing the functioning of Japanese financial markets in tackling climate change and understanding the challenges for improvement. Since climate change is a long-term issue involving various economic stakeholders, the survey will collect views from a broad set of market participants on an annual basis. The first survey was distributed to 663 entities including issuers, investors, financial institutions, and rating agencies, and more than 40 percent of those responded. In the survey, the respondents provided a view that climate-related risks and opportunities were reflected to a certain degree in the pricing of both stock and corporate bond markets in Japan, although there is room for further reflection in both markets. In order that climate-related risks and opportunities will be reflected more in the prices, many respondents raised issues regarding the availability of information and also the assessment methodologies of climate-related risks and opportunities. The former included "enhancing and/or standardizing information disclosure" and "bridging data gaps on climate-related data," and the latter included "improving transparency in ESG evaluation" and "further developing analysis methodologies." These issues were also raised by many respondents as challenges for increasing the size of the ESG bond market in Japan. Looking at supply and demand in the ESG bond market, the survey found solid demand for the ESG bonds. As for the motivation behind the ESG bond issuance, respondents emphasized strategic interest for their businesses and investor relations (e.g., improving their reputation, diversifying the investor base) rather than favorable issuing conditions of the ESG bonds. On the investor side, making social and environmental contributions was the most important reason for investing in the ESG bonds. These results suggest that Japan's ESG bond market would further expand with a broader base of issuers and investors by raising their awareness of those benefits and by reducing the cost of issuing as well as investing in the ESG bonds with more enhanced and standardized information disclosure. Market stakeholders have already been making efforts to overcome the issues identified in the first survey, such as the availability of information and the assessment methodologies of climate-related risks and opportunities, to further develop the market. The Bank will provide information on the status of market functioning concerning climate change and challenges for the future by continuously conducting this survey while improving its contents. The Bank also intends to contribute to advancing financial markets by following up on efforts made outside of Japan, conducting additional research and analyses on the functioning of financial markets concerning climate change, and communicating and coordinating with relevant stakeholders to develop market infrastructure.
    Date: 2022–08–05
  13. By: Ozili, Peterson K
    Abstract: This article discusses the need for climate change risk mitigation and why it is not the responsibility of Central Banks to mitigate climate change risk. The paper argues that the responsibility for managing climate change risk should lie with elected officials, other groups and institutions but not Central Banks. Elected officials, or politicians, should be held responsible to deal with the consequence of climate change events. Also, international organizations and everybody can take responsibility for climate change while the Central Bank can provide assistance - but Central Banks should not lead the climate policy making or mitigation agenda.
    Keywords: Climate change, environment, Central Bank, government, atmosphere, financial stability, risk management, climate change risk, financial sector, responsibility, financial institutions.
    JEL: G28 Q54 Q56
    Date: 2021
  14. By: Egbendewe, Aklesso Y. G.; Yevesse, Dandonougbo
    Keywords: International Development, Resource/Energy Economics and Policy, Environmental Economics and Policy
    Date: 2022–08
  15. By: Florkowski, Wojciech J.; Neupane, Sulakshan
    Keywords: International Development, Resource/Energy Economics and Policy, Environmental Economics and Policy
    Date: 2022–08
  16. By: Pierre Levasseur (SADAPT - Sciences pour l'Action et le Développement : Activités, Produits, Territoires - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Katrin Erdlenbruch (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Christelle Gramaglia (UMR G-EAU - Gestion de l'Eau, Acteurs, Usages - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - AgroParisTech - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro - Montpellier SupAgro - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Sofia Bento (ULISBOA - Universidade de Lisboa = University of Lisbon); Lúcia Fernandes (Universidade de Coimbra [Coimbra]); Pedro Baños Páez (Universidad de Murcia)
    Abstract: This paper looks at three contaminated communities in southern Europe facing pollution from industrial and mining activity and analyses forms of avoidance behaviour, using both economic and sociological approaches. Based on a quantitative household survey, we show that avoidance behaviour is mainly explained by residential location and socio-economic characteristics. Pollution perception is not statistically correlated to most avoidance behaviour. From in-depth qualitative interviews, we learn more about people's risk perception and whether and why people adopt avoidance behaviour, including discovering some inventive solutions. To conclude, our results cast doubt on the efficacy of current public advisory communications.
    Keywords: Pollution perception,pollution exposure,avoidance behaviour,mixed methods research,pollution perception
    Date: 2022
  17. By: ITF
    Abstract: This report provides scenarios for future transport demand and CO2 emissions in North and Central Asia up to 2050 to help decision makers chart pathways to sustainable, resilient transport. The scenarios reflect existing policy initiatives and specific constraints in the region. They also examine the potential impact of policies addressing the challenges and opportunities for transport from Covid-19.
    Date: 2022–06–29
  18. By: Victor Ajayi (Energy Policy Research Group, Judge Business School, University of Cambridge); Michael Pollitt (Energy Policy Research Group, Judge Business School, University of Cambridge)
    Keywords: Total factor productivity, incentive regulation, corporate reorganisations, gas networks, data envelopment analysis
    JEL: D24 H23 L43 L94
    Date: 2022–07
  19. By: Vania Licio
    Abstract: This paper estimates a measure of coal price for all NUTS3 Italian provinces between 1861 and 1911. Italy was a latecomer country and its late industrialization was characterized by the absence of coal in a time where the steam engine powered factory work. The new variable accounts for the main input factor of the manufacturing production during that period in which the Italian economy registered a long-term growth of GDP and an increase in its industrial activity. The infrastructural scarcity and the uneven water endowment, that still today rule the di erences between northern and southern Italy, were responsible for the di erent weight the price of coal had across the country
    Keywords: Coal; Italy; Provinces; Railways; Infrastructure; Transport costs
    JEL: N13 N53 N73 N93 O13 Q41
    Date: 2022–03
  20. By: Antoine Dechezleprêtre; Adrien Fabre; Tobias Kruse; Bluebery Planterose; Ana Sanchez Chico; Stefanie Stantcheva
    Abstract: Using new surveys on more than 40,000 respondents in twenty countries that account for 72% of global CO2 emissions, we study the understanding of and attitudes toward climate change and climate policies. We show that, across countries, support for climate policies hinges on three key perceptions centered around the effectiveness of the policies in reducing emissions (effectiveness concerns), their distributional impacts on lower-income households (inequality concerns), and their impact on the respondents’ household (self-interest). We show experimentally that information specifically ad-dressing these key concerns can substantially increase the support for climate policies in many countries. Explaining how policies work and who can benefit from them is critical to foster policy support, whereas simply informing people about the impacts of climate change is not effective. Furthermore, we identify several socioeconomic and lifestyle factors – most notably education, political leanings, and availability of public transportation – that are significantly correlated with both policy views and overall reasoning and beliefs about climate policies. However, it is difficult to predict beliefs or policy views based on these characteristics only.
    JEL: D78 H23 P48 Q54 Q58
    Date: 2022–07
  21. By: Niklas Gohl (University of Potsdam, DIW Berlin, Berlin School of Economics); Philipp Schrauth (University of Potsdam)
    Abstract: This paper provides novel evidence on the impact of public transport subsidies on air pollution. We obtain causal estimates by leveraging a unique policy intervention in Germany that temporarily reduced nationwide prices for regional public transport to a monthly flat rate price of 9 Euros. Us-ing DiD estimation strategies on air pollutant data, we show that this intervention causally reduced a benchmark air pollution index by more than six percent. Our results illustrate that public transport subsidies – especially in the context of spatially constrained cities – offer a viable alterna-tive for policymakers and city planers to improve air quality, which has been shown to crucially affect health outcomes.
    Keywords: air pollution, public transport, transport subsidies
    JEL: Q53 Q58 R12 R48
    Date: 2022–08
  22. By: Julien Ancel (AgroParisTech); Théo Mandonnet (AgroParisTech); Michel de Lara (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - ENPC - École des Ponts ParisTech)
    Abstract: To respect their pledge to fulfill the 2015 Paris Agreement on climate change, many countries have designed so-called Nationally Determined Contributions. One lever to reduce national greenhouse gases emissions is to change the trade policy of the country, in order to import more from the current and future least carbon-intensive economies. However, future carbon intensities reductions are uncertain, leading to the production of emissions scenarios by several institutes. A fitting trade policy is then classically obtained for each of such scenarios. By contrast with such perfect foresight (anticipative) approach, we propose to take into account all the possible futures simultaneously, in order to determine a "robust-touncertainty" trade policy. Using a two-stage stochastic optimization framework between 2015 and 2030, we study the French case and we outline a method to design a robust trade policy in a highly uncertain and constrained context. This optimal policy is then compared to optimal-by-scenario policies and to current French imports.
    Keywords: Optimal trade policy,Stochastic optimization,Import shares,Nationally Determined Contribution,Carbon footprint,France
    Date: 2022–07–13
  23. By: Lisandra Flach; Isabella Goruevich; Leif Grandum; Lisa Scheckenhofer; Feodora Teti; Isabella Gourevich
    Abstract: The Ukraine war and geopolitical tensions pose major challenges for supply chains. Whereas shortages of microchips became a symbol of supply chain disruptions during Covid-19, a survey from June 2022 from the ifo Institute shows that over 74% of German manufacturing firms report production disruptions due to shortages of different types of inputs and raw materials. The production of key technologies that are necessary, for instance for the energy transition, often depends on imported raw materials. Therefore, it is important to evaluate Germany’s raw material dependencies at the product level to identify the risk of future supply chain disruptions. This paper identifies nine critical raw materials, which have a high degree of supplier concentration and are used in more than half of the key technologies. For these raw materials, we provide a detailed analysis on Germany’s dependency on imports.
    Date: 2022
  24. By: Saha, Bijeta Bijen
    Keywords: Environmental Economics and Policy, Resource/Energy Economics and Policy, Research Methods/Statistical Methods
    Date: 2022–08
  25. By: Anna Risch (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: Fiscal incentives have been introduced to encourage households in many countries to undertake energy-saving renovations. This paper assesses the impact of an energy tax credit on (i) renovation rate and (ii) renovation expenditures using French data. We exploit a sharp discontinuity corresponding to the introduction of the French tax credit in 2005 to identify the policy's effects. Results indicate that the tax credit has little effect on the decision to renovate, increasing renovations by 1.09%, ceteris paribus. We find that the presence of free riding reduces the actual effect of fiscal measures. However, this fiscal policy does lead to an increase in renovation expenditures by 21.76%, all things being equal. This suggests that the energy tax credit induces households who are already determined to renovate to perform more substantial energy-saving renovations. We conduct a robustness check using the matching method, which confirms our results.
    Keywords: Policy evaluation,Regression discountinuity design,Energy tax credit,Energy-efficient renovation
    Date: 2020–08
  26. By: Yifei Cai; Valérie Mignon; Jamel Saadaoui
    Abstract: This paper aims at assessing the effects of US-China political tensions on the oil market. Relying on a quantitative measure of these relationships, we investigate how their dynamics impact oil demand, supply, and prices over various periods, starting from 1960 to 2019. To this end, we estimate a structural vector autoregressive model as well as local projections and show that trade tensions between the two countries pull down oil demand and supply, whereas prices tend to rise in the very short term. Overall, our findings show that conflicting relationships between these two major players in the oil market may have crucial impacts, such as the development of new strategic partnerships.
    Keywords: China, Oil market, Political relations.
    JEL: Q4 F51 C32
    Date: 2022
  27. By: ITF
    Abstract: This report provides scenarios for future transport demand and CO2 emissions in Southeast Asia up to 2050 to help decision-makers chart pathways to sustainable, resilient transport. The scenarios reflect existing policy initiatives and specific constraints in the region. They also examine the potential impact of policies addressing the challenges and opportunities for transport from Covid-19.
    Date: 2022–05–10
  28. By: David Weisbach; Samuel S. Kortum; Michael Wang; Yujia Yao
    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
    JEL: F18 H23 Q54
    Date: 2022–07
  29. By: Phoebe Koundouri; Nikitas Pittis (University of Piraeus, Greece); Angelos Plataniotis
    Abstract: Achieving climate neutrality, as dictated by international agreements such as the Paris Agreement, the United Nations Agenda 2030 and the European Green Deal, requires the conscription of all parts of society. The business world and, in particular, large enterprises have a leading role in this effort. Businesses can contribute to this effort by establishing a reporting and operating framework according to specific Environmental, Social and Governance (ESG) criteria. The interest of companies in the ESG framework has become more intense in the recent years, as they recognize that apart from an improved reputation, ESG criteria can add value to them and help them to become more effective in their functioning. In particular, large European companies are legally obligated by the Non-Financial Reporting Directive (NFRD-Directive 2014/95/EU) to disclose non-financial information on how they deal with social and environmental issues. In the literature, there are discussions on the extent to which a good ESG performance affects a company's profitability, valuation, capital efficiency and risk. The purpose of this paper is to examine empirically whether a relationship between good ESG performance and the good financial condition of companies can be documented. For a sample of the top 50 European companies in terms of ESG performance (STOXX Europe ESG Leaders 50 Index), covering a wide range of sectors, namely Automobiles, Consumer Products, Energy, Financial Services, Manufacturing, etc., we first reviewed their reportings to see which ESG framework they use to monitor their performance. Next, we examined whether there is a pattern of better financial performance compared to other large European corporations. Our results showed that such a connection seems to exist at least for some specific parameters, while for others, such a claim cannot be supported.
    Keywords: ESG, STOXX Europe, financial performance, capital structure, profitability, valuation
    Date: 2022–07–25
  30. By: Frondel, Manuel; Gerster, Andreas; Kaestner, Kathrin; Pahle, Michael; Schwarz, Antonia; Singhal, Puja; Sommer, Stephan
    Abstract: Das neu etablierte Wärme- & Wohnen-Panel ermöglicht durch die Verknüpfung von Informationen zum Gebäudebestand, dem Endenergiebedarf, detaillierten Angaben zu den sozioökonomischen Charakteristika der Haushalte sowie durch wiederholte systematische Erhebungen eine fundierte Evaluierung der Effektivität klimapolitischer Maßnahmen im Wärmesektor in Deutschland. Dieser Beitrag präsentiert die wichtigsten deskriptiven Ergebnisse der ersten Panel-Erhebung unter ca. 15.000 privaten Haushalten aus dem Jahr 2021. Neben der unvermeidlichen umfassenden Abfrage der Gebäudecharakteristika und Heiztechnik lag der Schwerpunkt der ersten Erhebung auf den energetischen Modernisierungstätigkeiten privater Haushalte sowie auf der Bewertung und Akzeptanz von Klimaschutzinstrumenten im Gebäudesektor. Überdies wurde die Akzeptanz verschiedener Aufteilungsvarianten der Kostenbelastung der Anfang 2021 eingeführten CO2-Bepreisung auf Mieter und Vermieter untersucht. Zu den zentralen Resultaten gehören, dass die Aufteilung der Kostenbelastung der CO2-Bepreisung gemäß Bausubstanz die höchste Zustimmung unter den Befragten genießt. Bezüglich der Akzeptanz von Klimaschutzinstrumenten im Gebäudesektor ist bemerkenswert, dass ein Einbauverbot von Gaskesseln und eine Gebäudeklimaabgabe nur bei rund 30% der Befragten Zustimmung findet, während ein Einbauverbot von Ölkesseln von fast 70% der Befragten begrüßt wird. Dabei heizen nur 9% derjenigen, die dem Einbauverbot von Ölkesseln zustimmen, selbst mit Öl, während der Großteil der Zustimmung mit ca. 39% von denjenigen Befragten stammt, die mit Gas heizen. Befragt nach ihrer Informiertheit über die CO2-Bepreisung gibt fast die Hälfte aller Befragten an, eher nicht informiert zu sein, lediglich ein sehr geringer Teil von 3,4% der Befragten fühlt sich sehr gut informiert. Ähnlich verhält es sich bei energetischen Gebäudemodernisierungen: Knapp über die Hälfte der Eigentümer fühlt sich nicht gut über energetische Sanierungen informiert.
    Keywords: Energieverbrauch,Heizkosten,Modernisierungsrate
    JEL: D12 Q41
    Date: 2022
  31. By: Belloc, Ignacio (University of Zaragoza); Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza)
    Abstract: In this paper, we analyze whether diesel fuel taxes can be an effective tool to boost the daily commuting of US workers towards the use of green modes of transport. To that end, we use data from the American Time Use Survey 2003-2019 and explore the factors influencing commuting time and the proportion of commute using alternative modes of transport, including walking and cycling. Our results indicate that diesel fuel taxes are linked to a reduction in the total time devoted to commuting, and to the proportion of commuting by private car, and to an increase in the proportion of commuting done by green modes of transport such as public transport and walking. This relationship is not homogeneous in the urban dimension, as the effects on total commuting time and the percentage of commuting by public transport is present in urban areas only. In a context where many countries are implementing policies aimed at increasing the use of sustainable modes of personal mobility, our results indicate that taxing fuels used for personal mobility may be an efficient way to decrease the use of more polluting modes of transport and encourage more eco-friendly alternatives while commuting.
    Keywords: commuting time, green mobility, state diesel taxes, American Time Use Survey
    JEL: D1 Q4 R4
    Date: 2022–07
  32. By: Victor Ajayi (Energy Policy Research Group, Judge Business School, University of Cambridge); Michael Pollitt (Energy Policy Research Group, Judge Business School, University of Cambridge)
    Keywords: Green growth, net zero, circular economy, future energy scenarios, productivity
    JEL: D24 O44 Q53 Q54
    Date: 2022–07
  33. By: Kimon Keramidas; Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Adrien Bidaud
    Abstract: Scenarios modelled with POLES, derived from JRC GECO 2021 | All results from 1.5°C scenario: world carbon price logistic over 2021-2100, at 1200 USD/tCO 2 in 2050
    Date: 2022–06–20
  34. By: ITF
    Abstract: This report provides scenarios for future transport demand and CO2 emissions in South and Southwest Asia up to 2050 to help decision-makers chart pathways to sustainable, resilient transport. The scenarios reflect existing policy initiatives and specific constraints in the region. They also examine the potential impact of policies addressing the challenges and opportunities for transport from Covid-19.
    Date: 2022–06–08
  35. By: Belloc, Ignacio; Giménez-Nadal, José Ignacio; Molina, José Alberto
    Abstract: This paper analyzes how gasoline price is related to the time workers in the US spend commuting by private vehicle, public transport, walking, or cycling. Using data from the American Time Use Survey for the years 2003-2019, and collecting data on gasoline price by state and year, we find that higher gasoline prices are related to less commuting by private car, and more commuting by public transport, walking, and cycling, the latter being transportation alternatives that are more eco-friendly. A 1% increase in gas prices is associated with an increase of 0.325%, 0.568% and 0.129% in the commuting time by public and physical modes (walking and cycling), respectively. By contrast, a decrease of 0.638% is found in the proportion of commuting done by private car. Furthermore, the elasticity differs by urban characteristics, showing relatively larger values in urban areas for private and public modes. By analyzing the relationship between commuting time, and gasoline prices in the US, our results may serve to inform future policies aiming to develop a low-carbon transport system, especially in urban areas where workers may be more affected by gasoline prices (and thus taxation).
    Keywords: commuting time,gasoline price,commuting mode,urban areas,American Time Use Survey
    JEL: R40 J1 J22 D1 Q4 R4
    Date: 2022
  36. By: SBARDELLA Angelica; BARBIERI Nicolò; CONSOLI Davide; NAPOLITANO Lorenzo (European Commission - JRC); PERRUCHAS François; PUGLIESE Emanuele (European Commission - JRC)
    Abstract: The brief provides an overview of green technological development across European regions employing the Economic Fitness Complexity approach to establish a green technology space. The study explores the associations between comparative advantage in specific technological domains and a region’s capacity to develop green technologies, i.e. its Green Fitness. Furthermore, it addresses the interaction between the green and non-green knowledge bases, with a particular focus on whether regional know-how in the non-green technological realm can be exploited in the green domain and vice versa. To this aim, a metric of regional Green Potential is proposed. The analysis suggests that regions specialised in green domains, irrespective of their complexity, have a higher propensity to develop technologies connected with green technologies. Green technologies are linked mostly to technologies related to the production or transformation of materials; with engines and pumps; and with construction methods. The regions with the highest Green Potential are not necessarily those with the highest Green Fitness. The results suggest that there is a potential for green and non-green technological advances to generate positive spillovers in terms of capabilities to produce innovations across the spectrum of technological complexity.
    Keywords: Green Deal, Economic Complexity, Green Capabilities, Regional Green Potential
    Date: 2022–05
  37. By: International Monetary Fund
    Abstract: CEMAC ended 2021 in a fragile external position, with gross reserves at only 2.7 months of prospective imports and net foreign assets (NFA) at their lowest level in decades, despite the availability of Fund financing, the SDR allocation, and monetary policy tightening. The terms of trade shock this year is expected to be broadly positive for CEMAC. This more favorable outlook is, however, subject to heightened external uncertainties associated with the fallout from the war in Ukraine (notably global inflation pressure, global growth uncertainties, and high oil price volatility), faster-than-anticipated global financial tightening, possible emergence of new COVID strains and risks from cryptoassets. Current high oil prices, if sustained, will help rebuild fiscal and external buffers, provided fiscal policies remain prudent. Shielding vulnerable populations from soaring energy and food prices adds to the complexity of navigating this uncertain environment, given CEMAC’s already limited policy options.
    Date: 2022–07–05
  38. By: Akinyemi, Taiwo; Jung, Suhyun
    Keywords: Environmental Economics and Policy, International Development, Resource/Energy Economics and Policy
    Date: 2022–08
  39. By: Raphael Abiry; Marien Ferdinandusse; Alexander Ludwig; Carolin Nerlich
    Abstract: We develop a two sector incomplete markets integrated assessment model to analyse the effectiveness of green quantitative easing (QE) in complementing fiscal policies for climate change mitigation. We model green QE through an outstanding stock of private assets held by a monetary authority and its portfolio allocation between a clean and a dirty sector of production. Green QE leads to a partial crowding out of private capital in the green sector and to a modest reduction of the global temperature by 0.04 degrees of Celsius until 2100. A moderate global carbon tax of 50 USD is 4 times more effective.
    Keywords: climate change, integrated assessment model, 2-sector model, green quantitative easing, carbon taxation
    JEL: E51 E62 Q54
    Date: 2022
  40. By: Wang, Linjie; Li, Jian; Etienne, Xiaoli L.
    Keywords: Agribusiness, Agricultural Finance, Agricultural and Food Policy
    Date: 2022–08
  41. By: Mario Bajo (Banco de España); Emilio Rodríguez (Banco de España)
    Abstract: Institutional investors, aware of the need to incorporate climate change as an additional risk factor into portfolio management, show a growing appetite for integrating Sustainable and Responsible Investment (SRI) criteria into their investment processes. Within a passive management context, this paper analyses, from a practical point of view, the inclusion of such criteria in the construction of corporate bond portfolios, thus incorporating a new dimension into the asset allocation process. We study the decarbonisation of a euro area corporate bond portfolio by constructing the efficient frontier, which shows the trade-off between the portfolio’s decarbonisation possibilities and the cost assumed in terms of deviation from the benchmark portfolio. We also analyse the impact of decarbonisation on the different risk-return parameters during the asset reallocation process. Finally, we present the main green investment strategies that investors can use to incorporate sustainability criteria into corporate bond portfolios’ design, introducing the Green-Parity approach as a complementary strategy to the available toolkit. The result of our empirical analysis, for the selected investment universe and sample period, shows that sustainability-conscious corporate bond investors have at their disposal different strategies that will allow them to achieve their decarbonisation objective without having to deviate significantly from their benchmark portfolio and to adequately meet the purely financial goals dictated by their investment mandate.
    Keywords: sustainable investments, carbon footprint, decarbonisation, climate risk, fixed income portfolio management, asset allocation, Green-Parity
    JEL: G10 G11 G12 M14 Q50
    Date: 2022–07
  42. By: Ioan Alexandru Puiu; Raphael Andreas Hauser
    Abstract: For the case of inflexible demand and considering network constraints, we introduce a Cost Minimisation (CM) based market clearing mechanism, and a model representing the standard Social Welfare Maximisation mechanism used in European Day Ahead Electricity Markets. Since the CM model corresponds to a more challenging optimisation problem, we propose four numerical algorithms that leverage the problem structure, each with different trade-offs between computational cost and convergence guarantees. These algorithms are evaluated on synthetic data to provide some intuition of their performance. We also provide strong (but partial) analytical results to facilitate efficient solution of the CM problem, which call for the introduction of a new concept: optimal zonal stack curves, and these results are used to devise one of the four solution algorithms. An evaluation of the CM and SWM models and their comparison is performed, under the assumption of truthful bidding, on the real world data of Central Western European Day Ahead Power Market during the period of 2019-2020. We show that the SWM model we introduce gives a good representation of the historical time series of the real prices. Further, the CM reduces the market power of producers, as generally this results in decreased zonal prices and always decreases the total cost of electricity procurement when compared to the currently employed SWM.
    Date: 2022–07
  43. By: Olivier Deschenes
    Abstract: This paper reviews and extends the recent empirical literature on the impact of climate change on mortality and adaptation in the United States. The analysis produces several new facts. First, the reductions in the impact of extreme heat on mortality risk previously documented up to 2004 have continued up to 2019, consistent with continued investments in health-protecting adaptations to high temperatures. The second part of the paper examines the private and external costs of electricity generation and consumption related to high temperatures, a commonly-used proxy for measuring the consumption of adaptation services. Extreme temperatures increase electricity demand in the residential sector (relative to moderate temperatures), but not in the commercial, industrial, and transportation end-use sectors. The additional electricity demand in response to high temperatures results in significant external costs due to the release of local and global pollutants caused by the combustion of fossil fuels in order to produce electricity. These external costs, documented for the first time in this paper, are one order of magnitude larger than the private cost of adaptation associated with electricity consumption.
    JEL: I1 Q4 Q5 Q54
    Date: 2022–07
  44. By: Sallee, James M.; Tarduno, Matthew A.
    Abstract: Congestion pricing improves economic efficiency, but it may lead to inequitable outcomes. A key policy priority in California is identifying ways to avoid the hardship of congestion pricing on low income or other vulnerable populations. This study uses data from a congestion pricing experiment in the Seattle metro area to examine the feasibility of using revenue from congestion pricing to compensate those harmed by the policy. Results indicate that the initial burden of congestion pricing is highly inequitable, with the lowest income drivers paying an average of 7 percent of their weekly income in congestion charges. There are also considerable differences in burdens within income groups. We show that policymakers face a tradeoff in ameliorating these two types of unequal burdens. Returning an equal fraction of the toll revenue to all drivers can make a policy progressive on average, but doing so leaves many drivers either overcompensated or under-compensated. We then show that while compensation packages based on basic demographic information could improve targeting, many low-income drivers would be left with large proportional burdens because of the fundamental difficulty in predicting individual-level tax burdens. Survey data on travel behavior from Seattle and California metro areas show that the difficulty of designing equitable transfers would be similar in the California metro areas most likely to consider adopting some form of congestion pricing.
    Keywords: Social and Behavioral Sciences, Congestion pricing, low income groups, social equity, vehicle miles of travel, travel behavior, incentives, traffic data
    Date: 2022–08–01
  45. By: ISOGAWA Daiya; OHASHI Hiroshi; ANAI Tokunari
    Abstract: This paper evaluates the impact of advance notice of demand curtailment events on inter-temporal consumption patterns of industrial electricity consumers. The empirical analysis focuses on a demand-response program offered in Japan, which has the same incentive structure as critical peak pricing (CPP). CPP imposes known higher prices at times that are not announced ahead of time, but the uncertainty of high-priced hours presumably limits the extent to which demand flexibly responds to the price intervention. Estimates of inter-temporal constant-elasticity-substitution preference indicate that advance notice weakens, not strengthens, the effectiveness of CPP for those industrial users who have lower rates of intra-day substitution of electricity consumption. The electricity demand turns significantly less elastic when the timings of CPP are announced in advance, compared to when they are kept unknown. This is largely because industrial electricity users in the Japanese manufacturing sector prioritize stable utilization of production facilities. Finally, the estimates imply that providing advance notice would encourage the participation of the demand curtailment program.
    Date: 2022–07
  46. By: Matsushima, Hiroshi; Khanna, Madhu
    Keywords: Environmental Economics and Policy, Resource/Energy Economics and Policy, Research Methods/Statistical Methods
    Date: 2022–08
  47. By: Ringler, C.; Belete, A. A.; Mathetsa, S. M.; Uhlenbrook, Stefan
    Keywords: Energy technology; Rural areas; Climate change; Resilience; Food security; Solar energy; Innovation; Investment; Water resources; Environmental impact; Ecosystems; Livelihoods; Women; Incentives
    Date: 2022
  48. By: Mohamed Elmoukhtar (USMS - Université Sultan Moulay Slimane); Fatima Touhami (Laboratoire de recherche multidisciplinaire en économie et gestion, USMS - Université Sultan Moulay Slimane); Othmane Taouabit (USMS - Université Sultan Moulay Slimane); Imane Mouhtat (USMS - Université Sultan Moulay Slimane)
    Abstract: Over the last twenty years, and since the United Nations World Conference on Sustainable Development (Rio+20), the theme of the green economy and its impact on sustainable development has prompted many researchers to reflect in depth on the global movement towards a more equitable and sustainable economy, towards a "green economy", generating a total commitment across the world. Morocco, like several other governments, has often given great importance in its stimulus programmes to green entrepreneurs, through the granting of research credits to stimulate innovation, or loan guarantees, or tax breaks or incentives for business creation. The choice of this theme fits perfectly into the current context of our country, marked by the debates on the new development model. Today, Morocco is charting its path towards development by putting in place very ambitious strategies characterised by the adoption of new educational, social, economic and financial programmes. Green entrepreneurship is therefore an asset to accompany the country in its economic, technological and environmental transition. It constitutes a new economic and development dynamic in full evolution in a context of awareness of global environmental issues. Can we therefore consider the promotion of green entrepreneurship in Morocco as an asset for a sustainable territorial development of the country? The aim of our study is to analyse the contribution of green entrepreneurship to the development of the country using the SWOT analytical tool and to draw some conclusions and recommendations.
    Keywords: Green economy,green entrepreneurship,sustainable development,literature review. JEL Classification: Q56 Paper type: Theoretical Research
    Date: 2022–06–06
  49. By: Michael Funke; Raphael Terasa
    Abstract: As an incentive to increase high-impact investment and boost growth, the German Federal Government is planning to introduce a targeted temporary super depreciation allowance to support much-needed green and digital transitions. Using a calibrated multi-sector DSGE model, we find that the temporary super deduction could trigger an uplift of 10 percentage points for green and digital capital spending, turbo-charging green growth ambitions. However, with the temporary measure set to end after two years, there is a risk that business investment could tail off at a crucial time, when post-COVID-19 recovery is levelling out. Thus, additional longer-term climate policies are needed to drive the green transition, facilitated by broad policy packages.
    Keywords: climate economics, business taxation, firm investment, depreciation allowances, DSGE model, Germany
    JEL: E22 E60 H25 Q54 Q58
    Date: 2022
  50. By: Wardle, Arthur R.; Akhundjanov, Sherzod B.
    Keywords: Resource/Energy Economics and Policy, Environmental Economics and Policy, Research Methods/Statistical Methods
    Date: 2022–08
  51. By: International Monetary Fund
    Abstract: The fallout from the war in Ukraine has hit the German economy before it regained its pre-pandemic GDP level, with effects running through higher energy costs, the possibility of gas shortages and broader supply disruptions, and weaker confidence. Consumer price inflation has spiked above 8 percent, largely because of energy price increases, but inflation pressures are becoming more widespread.
    Date: 2022–07–20
  52. By: Cronin, Stephen B
    Abstract: This report documents the successful capture and reuse of diesel exhaust soot particles as a conductive additive in lithium manganese oxide (LMO) and lithium iron phosphate (LFP) cathodes in Li-ion batteries. This approach enables an abundant toxic pollutant to be converted into a valuable material for energy storage devices. This study consists of an initial characterization of the diesel soot particles, a high-temperature annealing step to remove residual organics and unburned hydrocarbons, and characterization of the electrical performance in a Li-ion battery configuration. Here, composite electrodes are fabricated by mixing active materials (LFP or LMO) with conductive carbon and binders. The performance of the diesel soot particles as conductive additives is compared with that of commercially available activated carbon (i.e., Super P®). The current evolution of the composite electrode made with diesel soot particles demonstrates comparable performance to the electrodes containing the Super P® carbon. Based on high-resolution transmission electron microscope (HRTEM) images and scanning mobility particle sizer (SMPS) spectra, it is found that these diesel soot nanoparticles follow a narrow log-normal distribution centered around 100 nm in diameter and consist of highly porous amorphous carbon, which provide a large surface-to-volume ratio, making them ideal candidates for electrode materials in Li ion batteries. View the NCST Project Webpage
    Keywords: Engineering, Physical Sciences and Mathematics, Particulate matter, Pseudocapacitive, Li-ion battery, Diesel soot, Sustainability
    Date: 2022–08–01
  53. By: Kaukin Andrey (Gaidar Institute for Economic Policy); Miller Evgenia (RANEPA)
    Abstract: In 2021, output in the extractive sector of the Russian industry went up due to the influence of factors that appeared at the beginning of 2021: growth of demand for thermal coal and natural gas from European and Asian countries; weakening of the effect of restrictions related to the OPEC+ agreement on the back of higher quotas for daily oil production by the member countries. The manufacturing sector also demonstrated growth in 2021, which was achieved owing to high prices and growing external demand for the products of industries that occupy a significant share in the structure of industrial production (metallurgy, chemical industry, oil refining industry).
    Keywords: Russian economy, production, external and internal demand, GDP structure
    JEL: G28
    Date: 2022
  54. By: Alvaro MORENO; Diego GUEVARA; Jhan ANDRADE; Christos PIERROS; Antoine GODIN; Devrim YILMAZ; Sebastian VALDECANTOS
    Abstract: The transition to a low-carbon and climate resilient economy is a process of important restructuring of the productive network where sunset industries will decline and sometimes disappear and where sunrise industries will emerge and flourish. As this process takes place, all aspects of the economy will be impacted: from demand to supply, from public to private sectors, from finance to the informal economy. While there is a growing literature on the macroeconomic consequences of these transitions there lacks an analytical framework that allows perceiving in a comprehensive and systematic way the vulnerabilities of such structural change dynamics, particularly in the context of developing and emerging economies. This paper proposes such a framework highlighting how fiscal, monetary, financial and external dimensions can be integrated. The framework can then be used to question the robustness of transition dynamics and pinpoint where extra attention should paid.
    JEL: Q
    Date: 2022–07–08
  55. By: Scheer, Antonina; Schwarz, Moritz; Hopkins, Debbie; Caldecott, Ben
    Abstract: Labour markets of oil-exporting regions will be impacted by a global transition to low-carbon energy as oil demand reduces to meet the aims of the Paris Agreement. Together with direct job losses in the oil and gas industry, indirect employment effects on other sectors should also be considered to ensure a just transition. We explore these direct and indirect employment impacts that could result from the low-carbon transition by analysing the effect of oil price fluctuations on the labour market of Alberta, a Canadian province economically reliant on oil sands extraction. We employ a mixed methods approach, contextualizing our quantitative analysis with first-hand experiences of career transitions using interviews with oil sands workers. We estimate a vector autoregression for province-wide insights and explore sector-specific dynamics using time series regressions. We find that the price discount on Canadian oil sands, which is determined by local factors like crude oil quality and pipeline capacity, does not significantly affect employment, while the global oil price does. This finding puts in doubt claims of long-term employment benefits from new pipelines. We find that at a provincial scale, oil price fluctuations lead to employment levels also fluctuating. Our analysis at the sectoral level shows that these job fluctuations extend beyond oil and gas to other sectors, such as construction and some service sectors. These findings suggest that the province’s current economic dependence on oil creates job precarity because employment in various sectors is sensitive to a volatile oil market. Furthermore, due to this sectoral sensitivity to oil price changes, workers in these sectors may be especially at risk in a low-carbon transition and warrant special attention in the development of provincial and national just transition policies. Transitional assistance can support workers directly, while economic diversification in Alberta can reduce reliance on international oil markets and thereby ensure stable opportunities in existing and new sectors. Key policy insights Decreased global oil demand is likely to create employment risks for workers in Alberta and other fossil fuel producing regions of the world. Current economic dependence on oil sands extraction in Alberta leads to job precarity across sectors, including in those seemingly unrelated to extraction. Proactive economic diversification in anticipation of the low-carbon transition could reduce precarity by mitigating the effects of oil price fluctuations on employment levels in the long term. Workers in sectors with higher oil price sensitivity (i.e. oil and gas, construction, professional services, manufacturing, accommodations, and food services sectors) could be prioritized in coordinated just transition policies at the local, provincial, and national scales. The details of career transitions gleaned from our interviews suggest that tripartite social dialogue would contribute meaningfully to just transition policy development.
    Keywords: just transition; labour econometrics; mixed methods; oil-dependent regions; stranded assets; Environmental Change and Management Dissertation Publication Prize; Clarendon Fund; Robertson Foundation; T&F deal
    JEL: R14 J01
    Date: 2022–07–13
  56. By: ITF
    Abstract: This report explores how ASEAN member states can mitigate the negative impacts of the rapidly growing number of cars on the region’s roads. More, increasingly larger vehicles consume more energy, emit more CO2 and cause more local air pollution. Among the policies to counter these trends and make mobility in the region more sustainable is the ASEAN Fuel Economy Roadmap. This study provides support for implementing the roadmap. It looks specifically at policies for making light-duty vehicles more efficient and less emitting but also provides insights for other motorised road vehicles. The report explores opportunities for aligning policies across ASEAN, considers the role of trade agreements and recommends measures for a transition towards electrification.
    Date: 2022–03–28
  57. By: Steve Cicala; David Hémous; Morten G. Olsen
    Abstract: This paper applies principles of adverse selection to overcome obstacles that prevent the implementation of Pigouvian policies to internalize externalities. Focusing on negative externalities from production (such as pollution), we consider settings in which aggregate emissions are known, but individual contributions are unobserved by the government. We evaluate a policy that gives firms the option to pay a tax on their voluntarily and verifiably disclosed emissions, or pay an output tax based on the average rate of emissions among the undisclosed firms. The certification of relatively clean firms raises the output-based tax, setting off a process of unraveling in favor of disclosure. We derive sufficient statistics formulas to calculate the welfare of such a program relative to mandatory output or emissions taxes. We find that the voluntary certification mechanism would deliver significant gains over output-based taxation in two empirical applications: methane emissions from oil and gas fields, and carbon emissions from imported steel.
    JEL: D82 H2 H87 K32 L51 Q54
    Date: 2022–07
  58. By: Aziz, Mustahsin; Elbakidze, Levan
    Keywords: Environmental Economics and Policy, Consumer/Household Economics, Teaching, Communication, and Extension
    Date: 2022–08
  59. By: Adèle Sébert (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique)
    Keywords: environnement,énergie,précarité énergétique,prix,data visualisation,essence,gaz
    Date: 2022–01–19

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