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on Energy Economics |
| By: | Peter K. Kruse-Andersen (Department of Economics, University of Copenhagen) |
| Abstract: | Recent events have clarified the interdependence of national security and energy supply. Specifically, it has become increasingly evident that heavy reliance on foreign fossil fuel supply may come at a national security cost. The present study derives the optimal policy of a net fossil fuel importing economy with a binding climate target, when fossil fuel imports are associated with national security costs. The study shows that optimal carbon taxes are differentiated across fossil fuels and that domestic fossil fuel production should be subsidized. Further, carbon capture and storage should be taxed, while no subsidies should be granted to green energy production. These results contrast the typical climate policy recommendation of uniform carbon taxation. |
| Keywords: | Climate policy, National security, Energy security, Environmental taxes and subsidies |
| JEL: | F52 H23 H56 Q43 Q54 |
| Date: | 2022–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kuiedp:2201&r= |
| By: | Steven Fries (Peterson Institute for International Economics) |
| Abstract: | The IPCC Sixth Assessment Report on Climate Change Mitigation highlights the vast gap between climate change mitigation actions and climate stabilization goals. But its broad policy prescriptions are likely to leave policymakers pondering what specific actions to take. Informed by accumulating evidence on transforming aspects of energy systems like power generation from solar and wind resources and battery electric cars, this paper develops a more pointed energy reform strategy than that of the IPCC to deliver the necessary systemwide changes. It makes the case for two unorthodox policies. One is for governments to provide, in addition to R&D supports, market-creating supports for early deployment of low-carbon technologies in initial markets. The second is to sequence emissions pricing after innovation and market-creating supports and differentiate this pricing across key energy sectors rather than impose one economywide price. Compared with a single price, targeting higher emissions pricing on sectors that are costlier to decarbonize still promotes cost-effective emission cuts but limits adverse distributional impacts. The paper also considers nonprice barriers to change and ways to coordinate domestic reforms across countries. |
| Keywords: | low-carbon technologies, innovation policy, market-creating policies, cost-effective emissions pricing, distributional fairness, efficiency regulation, institutional reforms, international coordination. |
| JEL: | O25 O38 Q48 Q58 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp22-13&r= |
| By: | E. Mark Curtis; Ioana Marinescu |
| Abstract: | Does the growth of renewable energy benefit US workers, and which workers stand to benefit the most? Until now, evidence on green energy jobs has been limited due to measurement issues. We use data on nearly all jobs posted online in the US, as collected by Burning Glass Technology, and we create a new measure of green jobs, defined here as solar and wind jobs. We use job titles and task requirements to define green jobs. We find that both solar and wind job postings have more than tripled since 2010, with solar jobs seeing especially strong growth that precedes the growth of new installed solar capacity. In 2019, we identify approximately 52,500 solar job openings and 13,500 wind job openings. Solar jobs are mostly (33%) in sales occupations, and in the utilities industry (16%). Wind jobs are most represented among installation and maintenance occupations (37%), and in the manufacturing industry (29%). Green jobs are created in occupations that are about 21% higher paying than average. The pay premium is even higher for jobs with a low educational requirement. Finally, green jobs tend to locate in counties with high shares of employment in fossil fuel extraction. Overall, our results suggest that the growth of renewable energy leads to the creation of relatively high paying jobs, which are more often than not located in areas that stand to lose from a decline in fossil fuel extraction jobs. |
| JEL: | J23 Q52 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30332&r= |
| By: | David Popp; Francesco Vona; Myriam Grégoire-Zawilski; Giovanni Marin |
| Abstract: | The costs of low-carbon energy fell dramatically over the past decade, leading to rapid growth in its deployment. However, many challenges remain to deploy low-carbon energy at a scale necessary to meet net zero carbon emission targets. We argue that developing complementary technologies and skills must feature prominently in the next wave of low-carbon energy innovation. These include both improvements in physical capital, such as smart grids to aid integration of intermittent renewables, and human capital, to develop the skills workers need for a low-carbon economy. We document recent trends in energy innovation and discuss the lessons learnt for policy. We then discuss the need for complementary innovation in both physical capital—using smart grids as an example of how policy can help—and human capital, where we show how a task approach to labor informs policy and research on the worker skills needed for the energy transition. |
| Keywords: | low-carbon energy, innovation, patents, human capital, skills |
| JEL: | J24 O31 O38 Q42 Q55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9878&r= |
| By: | Bigerna, Simona; D'Errico, Maria Chiara; Polinori, Paolo |
| Abstract: | Accounting for the 55% of global population and the 70% of global emissions cities are on the forefront of the climate change mitigation policies and have a pillar role in meeting global targets. The role of cities for a sustainable economy has become more urgent with the Covid-19 pandemic, highlighting that cities cannot go back to business as usual. There are many policy options for city to address climate change, such as improving energy saving, reducing emissions, advocating low-carbon life. Cities need to find the appropriate low-carbon development pathways for their sustainable development, therefore, their actions must be tailored according to multiple criteria, including socio-economic factors, spillover effects, the structure of source of emissions, etc. The objective of this study is therefore to identify the most appropriate pathways cities should follow when designing their climate mitigation programs, accounting for their specific characteristics, including their carbon dioxide emissions. Using data from the CDP-ICLEI Unified Reporting System 2020 and the Global Human Settlement Urban Centre database, the fuzzy-set qualitative comparative analysis identifies the configurations of city- and program-specific factors according to which urban climate actions set more ambitious climate goals in terms of emissions reduction. In this way, the study provides policy recommendations to local governments to select and support the most appropriate climate mitigation programs. |
| Keywords: | climate change, city mitigation program, Fuzzy-set qualitative comparative analysis |
| JEL: | C38 O21 O38 Q58 R11 |
| Date: | 2022–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114156&r= |
| By: | Clara Berestycki; Stefano Carattini; Antoine Dechezleprêtre; Tobias Kruse |
| Abstract: | This study proposes a new indicator of Climate Policy Uncertainty based on newspaper coverage frequency. The indicator currently includes 12 OECD Member Countries and covers the period 1990-2018. The index spikes near major political events and during major discussions around potentially significant climate policy changes. Using a global firm-level dataset, the empirical analysis shows that Climate Policy Uncertainty is associated with economically and statistically significant decreases in investment, particularly in pollution-intensive sectors that are most exposed to climate policies, and among capital-intensive companies. In addition to annual series, the study also provides the indicator at higher frequencies of monthly and quarterly levels, and develops sub-indices that capture the direction of climate policy uncertainty associated with a strengthening or a weakening of climate policies for a sub-set of countries. |
| Keywords: | beliefs, climate policy, investment, Uncertainty |
| JEL: | D22 D83 G10 O32 Q58 |
| Date: | 2022–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1724-en&r= |
| By: | Ricardo Gimeno (Banco de España); Clara I. González (Banco de España) |
| Abstract: | Concerns about climate change are now widespread, and the risks for financial assets have become more evident. Investors are increasingly aware of the need to incorporate climate-related considerations in their investment decisions. All this has had an impact on market valuations. In this paper, we extend the framework of the factor models that explain the expected return of stock models to include a climate change exposure factor. To do so, we built a portfolio that is long on companies with low carbon emissions, and short on companies with high carbon emissions. We show that this factor is relevant in the market and allows for an approximation of the climate change exposure of firms with poor disclosure of their green performance. Thus, the betas of this factor could be a useful tool for investors that wish to incorporate these aspects in the management of their portfolios and analysts interested in corporate exposure to climate change risks. |
| Keywords: | climate change, carbon footprint, factor model, asset pricing, disclosure |
| JEL: | G12 Q54 G24 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2207&r= |
| By: | Aghion, Philippe; Boneva, Lena; Breckenfelder, Johannes; Laeven, Luc; Olovsson, Conny; Popov, Alexander; Rancoita, Elena |
| Abstract: | Fulfilling the commitments embedded in the Paris Agreement requires a climate-technologyrevolution. Patented innovation of low-carbon technologies is lower in the EU than in selectedpeers, and very heterogeneous across member states. We motivate this fact with anendogenous model of directed technical change with government policy and financialmarkets. Variations in carbon taxes, R&D investment, and venture capital investment explaina large share of the variation in green patents per capita in the data. We discuss implicationsfor policy, concluding that governments can play a catalytic role in stimulating greeninnovation while the role of central banks is limited. JEL Classification: E5, G1, O4, Q5 |
| Keywords: | central banks, climate change, directed technical change, financial markets, public policy |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20222686&r= |
| By: | Andreas Lichtenberger; Joao Paulo Braga; Willi Semmler (Schwartz Center for Economic Policy Analysis (SCEPA)) |
| Abstract: | The green bond market is emerging as an impactful financing mechanism in climate change mitigation efforts. The effectiveness of the financial market for this transition to a low-carbon economy depends on attracting investors and removing financial market roadblocks. This paper investigates the differential bond performance of green vs non-green bonds with (1)a dynamic portfolio model that integrates negative as well as positive externality effects and via (2) econometric analyses of aggregate green bond and corporate energy time-series indices; as well as a cross-sectional set of individual bonds issued between 1 January 2017, and 1 October 2020. The asset pricing model demonstrates that, in the long-run, the positive externalities of green bonds benefit the economy through positive social returns. We use a deterministic and a stochastic version of the dynamic portfolio approach to obtain model-driven results and evaluate those through our empirical evidence using harmonic estimations. The econometric analysis of this study focuses on volatility and the risk–return performance (Sharpe ratio) of green and non-green bonds, and extends recent econometric studies that focused on yield differentials of green and non-green bonds. A modified Sharpe ratio analysis, cross-sectional methods, harmonic estimations, bond pairing estimations, as well as regression tree methodology, indicate that green bonds tend to show lower volatility and deliver superior Sharpe ratios (while the evidence for green premia is mixed). As a result, green bond investment can protect investors and portfolios from oil price and business cycle fluctuations, and stabilize portfolio returns and volatility. Policymakers are encouraged to make use of the financial benefits of green instruments and increase the financial f lows towards sustainable economic activities to accelerate a low-carbon transition. |
| Keywords: | green bonds; innovation; climate finance; dynamic portfolio decisions |
| JEL: | E24 I14 J62 J38 E21 J83 J32 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:epa:cepapb:2022-02&r= |
| By: | Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University & Department of Banking and Insurance, Faculty of Finance and Accounting, Prague University of Economics and Business, Czech Republic); Anna Kortusova (Institute of Economic Studies, Faculty of Social Sciences, Charles University); Binyi Zhang (Institute of Economic Studies, Faculty of Social Sciences, Charles University) |
| Abstract: | Green bonds have gained prominence in China´s capital market as tools that help to fuel the transition to a climate-resilient economy. Although the issuance volume in the Chinese green bond market has been growing rapidly in recent years, the impact of the green label on bond pricing has not been adequately studied. Therefore, this paper investigates whether this newly developed financial instrument offers investors in China an attractive yield compared to other equivalent conventional bonds. By matching green bonds with their conventional counterparts and subsequently applying a fixed-effects estimation, our empirical results reveal a significant green bond yield premium of 1.8 basis points (bps) on average in the Chinese secondary market. In addition to that, we find that CBI certified green bond generate higher yields than self-labelled green bond in the Chinese market. Investors are found to be willing pay a higher price for green bonds issued by environmental, social and governance (ESG) performance-rated issuers. Our results point to some practical implications for investors and policymakers. |
| Keywords: | Green Finance; Green bonds; ESG; China |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2022_20&r= |
| By: | Kohnert, Dirk |
| Abstract: | The EU is one of the three largest economies in the world. But its economy, which is still suffering from the cCOVID-19 pandemic and the negative effects of the Russian war in Ukraine, faces a bleak outlook. Inflation, or even stagflation, is a major concern as it reflects cost pressures from disrupted supply chains and tight labor markets. The war in Ukraine could also lead to a sustained stop in European gas supplies from Russia. Fitch Ratings therefore forecast the likelihood of a technical recession in the euro zone due to ongoing gas rationing. Apparently the EU is at the mercy of two unpredictable powers, Putin and the weather. China is also affected by global imbalances, and when China coughs, Europe catches the flu. However, the risks are greatest in sub-Saharan Africa. Its global growth spillovers come mainly from the EU and the BRICS countries. In addition to its strong demographic growth, the continent is already suffering from climate change, including prolonged droughts, and political destabilization, particularly in the Sahel, Horn of Africa and East Africa. The two major African powers, Nigeria and South Africa, are currently going through major socioeconomic crises. Many sub-Saharan African countries are heavily dependent on energy and food imports, particularly wheat from Russia and Ukraine. For the approximately 30 million African poor, this means an increase in inequality. A recession in Europe would amplify external pressures and growth challenges. In addition, the emerging sub-Saharan markets bear the greatest export risk to the EU. The debt problem is also looming again, because lower global commodity prices slowed down economic growth. |
| Keywords: | EU; recession; Russo-Ukrainian War; COVID-19 pandemic in Africa; Sub-Saharan Africa; economic development; human development; informal sector; poverty; famine; international trade; food crises; global power; fragile states; Nigeria; South Africa; Postcolonialism; African Studies |
| JEL: | D31 D62 E24 E26 F13 F22 F35 F51 F54 N17 N47 O15 O17 P26 Z13 |
| Date: | 2022–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114051&r= |
| By: | Jaime de Melo (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, UNIGE - Université de Genève); Jean-Marc Solleder (UNIGE - Université de Genève) |
| Abstract: | Expansion of Global Value Chains (GVCs) is a mixed blessing for the environment. Effects of growth and emissions from transport associated with international trade have negative effects; but greater flows of knowledge and associated spillovers, and adoption of environmentally innovative products have positive effects. This paper provides evidence on carbon dioxide (CO2) emissions for 51 African and 132 other countries for 163 products over the period 1995-2015. The resulting landscape is summarized in four patterns. Patterns identified for the Africa region differ from those identified for other regions but are closely related to a synthetic aggregate comparator constructed on the basis of three characteristics (per capita income, share of manufacturing in GDP, and distance to trading partners). |
| Keywords: | Africa,decarbonization,emission intensity |
| Date: | 2022–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03739898&r= |
| By: | T. Chamarande (IGE - Institut des Géosciences de l’Environnement - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, 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); S. Mathy (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); B. Hingray (IGE - Institut des Géosciences de l’Environnement - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | Autonomous micro-grids based on solar photovoltaic (PV) are one of the most promising solutions to provide electricity access in many regions worldwide. Different storage/PV capacities can produce the same level of quality service, but an optimal design is typically identified to minimize the levelized cost of electricity. This cost optimization however relies on technical and economic hypothesis that come with large uncertainties and/or spatial disparities. This article explores the sensitivity of the optimal sizing to variations and uncertainties of such parameters. Using data from Heliosat and ERA5, we simulate the solar PV production and identify the least cost configurations for 200 locations in Africa. Our results show that the optimal configuration is highly dependent on the characteristics of the resource, and especially on its co-variability structure with the electric demand on different timescales. It is conversely rather insensitive to cost hypotheses, which allow us to propose simple pre-sizing rules based on the only characteristics of the solar resource and electricity demand. The optimal storage capacity can be estimated from the 75th percentile of the daily nocturnal demand and the optimal PV capacity from the mean demand and the standard deviation of the daily power difference between solar production and demand. |
| Keywords: | PV microgrids,microgrid sizing,Rural electrification,Levelized Cost of Electricity (LCOE),Africa |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03740059&r= |
| By: | Kohnert, Dirk |
| Abstract: | The EU is one of the three largest economies in the world. But its economy, which is still suffering from the COVID-19 pandemic and the negative effects of the Russian war in Ukraine, faces a bleak outlook. Inflation, or even stagflation, is a major concern as it reflects cost pressures from disrupted supply chains and tight labour markets. The Russian invasion of Ukraine could also lead to a sustained stop in European gas supplies from Russia. Fitch Ratings forecast the likelihood of a technical recession in the eurozone due to ongoing gas rationing. Apparently, the EU is at the mercy of two unpredictable powers, Putin and the weather. Moreover, China is also affected by global imbalances, and when China coughs, Europe catches the flu. However, the risks are greatest in sub-Saharan Africa. Its global growth spillovers come mainly from the EU and the BRICS countries. In addition to its strong demographic growth, the continent is already suffering from climate change, including prolonged droughts, and political destabilization, particularly in the Sahel, Horn of Africa and East Africa. The two major African powers, Nigeria and South Africa are currently going through major socio-economic crises. Many sub-Saharan African countries are heavily dependent on energy and food imports, particularly wheat from Russia and Ukraine. For the approximately 30 million African poor, this means a further increase in inequality. A recession in Europe would amplify external pressures and growth challenges. In addition, the emerging sub-Saharan markets bear the greatest export risk to the EU. The debt problem is also looming again because lower global commodity prices slowed down economic growth. |
| Keywords: | UE; récession; guerre russo-ukrainienne; pandémie de COVID-19 en Afrique; Afrique subsaharienne; développement économique; développement humain; secteur informel; pauvreté; famine; commerce international; crises alimentaires; États fragiles; Nigeria; Afrique du Sud; postcolonialisme; études africaines; |
| JEL: | D31 D62 E24 E26 F13 F22 F35 F51 F54 N17 N47 O15 O17 P26 Z13 |
| Date: | 2022–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114052&r= |
| By: | Peter Cramton (University of Cologne, Cologne, Germany 50923); Emmanuele Bobbio (University of Cologne, Cologne, Germany 50923); David Malec (University of Maryland, College Park MD 20742); Pat Sujarittanonta (Chulalongkorn University, Bangkok, Thailand 10400) |
| Abstract: | "Electricity markets worldwide are undergoing a many‐decade transition in the way electricity is generated and consumed. The success of this transition depends critically on climate policy and market design. We model the most advanced electricity markets in the world to evaluate the impact of alternative policies on electricity market outcomes over the next 40 years, including costs, profits, social welfare, risks, and reliability. Each year, investors decide which resources enter and exit given forward‐looking consistent expectations about energy profits, prices, and costs. The model is unique in modeling investment decisions at the individual unit level based on precisely calculated profits from energy, reserves, and capacity markets. These profits depend critically on the resource structure, which changes each year with investor decisions. New and essential elements of electricity markets, such as battery storage and price responsive demand are fully integrated. The model provides detailed insights into how policies such as carbon pricing impact the transition to renewable energy." |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:183&r= |
| By: | Kuusela, Olli-Pekka; Lintunen, Jussi |
| Abstract: | Abstract If the worst-case scenarios materialize during the upcoming winter months, electricity markets are in danger of plunging into a severe and crippling crisis. The situation unfolds against the backdrop economic sanctions imposed by the EU on Russian economy in the aftermath of the war in Ukraine and Russia’s retaliation in curtailing energy exports to the member countries. In Finland, some electricity users are bearing a greater burden of the ensuing market turbulence. Therefore, political consensus has emerged in support of providing some economic relief for those households facing rapidly increasing costs of living. However, as a general principle, consumers and firms should primarily rely on private means for preparing and withstanding temporary market fluctuations. Instead of broad, untargeted support measures, the policy action should mainly focus on providing temporary relief for those low-income groups who cannot cope with the increasing cost of electricity, while also taking measures to reduce pressure on excessive prices. Additionally, the government should focus its efforts in boosting domestic electricity production, with the goal of reducing the risk of rolling blackouts during the coldest days of the winter months. All households should also have an incentive, or at least a sense of national urgency, to adjust and save in electricity consumption. |
| Keywords: | Electricity markets, Taxation, Subsidies, Electricity shortage, Emissions trading, Investment |
| JEL: | H20 Q40 Q41 Q48 |
| Date: | 2022–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:113&r= |
| By: | Emmanuele Bobbio; Simon Brandkamp; Stephanie Chan; Peter Cramton; David Malec; Lucy Yu |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:184&r= |
| By: | Asantewaa, Adwoa (Durham University Business School); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Llorca, Manuel (Department of Economics, Copenhagen Business School) |
| Abstract: | The financial viability of electric utilities in sub-Sahara Africa (SSA) is a central energy policy issue. This follows a persistent under-recovery of costs despite having some of the highest electricity prices in the world. However, discussions on electricity price-cost margins often focus on the revenue aspects and tariff and utility reforms, but inadequately on costs and broader sector reforms. Through a synthesis of reform theories and case studies and using small electricity systems as a surrogate for liberalised sectors without competitive markets, this paper examines the connection between sector reforms and costs. It brings economic perspective to financial performance in SSA electricity systems and the need for a holistic approach for cost-recovery. We recommend the promotion of mobile power plants to facilitate contestability in generation and competitive procurement of new capacity to lower costs. Small systems should participate in regional power markets to neutralise the scale limitations of autarkic demand, and form platforms to share information on cost opportunities to inform procurement designs and regulatory benchmarks. Regional markets could partner with governments to develop subsidy schemes such as contracts for differences to remove rigidities in national power purchasing contracts to promote participation of small systems in regional markets. Yardstick competition in the distribution segment is viable in small electricity systems and should be pursued. |
| Keywords: | Small electricity systems; sub-Saharan Africa; electric utilities; financial performance; cost under recovery; electricity prices |
| JEL: | D47 D52 D61 E13 L97 P18 P41 P48 |
| Date: | 2022–08–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2022_012&r= |
| By: | Williams, Henry |
| Keywords: | Environmental Economics and Policy, Marketing, Production Economics |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322461&r= |
| By: | Peter Cramton (University of Cologne and University of Maryland) |
| Abstract: | A local flexibility market is presented that addresses intrazonal congestion in a zonal electricity market. The market lets system operators access flexibility at multiple voltage levels to satisfy transmission constraints. Market participants offer local flexibility intraday in a continuous trading process. This supply is matched with demand from system operators. The market-based redispatch is transparent and technology neutral. Inc-dec gaming is mitigated with features to detect and sanction the behavior. Cost-based redispatch from conventional generation serves as a backstop if additional flexibility is required close to real time. This further mitigates inc-dec gaming by disciplining behavior in the spot market. An advantage of the approach in Europe is that it represents a modest change from the current market and therefore can be implemented sooner and with less risk. |
| Keywords: | local flexibility, congestion pricing, market design, electricity markets, electricity regulation |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:182&r= |
| By: | Gautam Gowrisankaran; Ashley Langer; Wendan Zhang |
| Abstract: | Legislation often empowers agencies to develop rules, but legal challenges may create uncertainty, thereby increasing firm costs, delaying policy objectives, and affecting externalities. This paper investigates policy uncertainty surrounding the Mercury and Air Toxics Standard, estimating a dynamic oligopoly model of technology adoption and exit for coal electricity generators that extends moment-based Markov equilibrium. To recover annual profits, we develop estimators for ramping and operation and maintenance costs. Our estimated perceived enforcement probability fell as low as 43% in 2014. Removing policy uncertainty would increase expected discounted generator profits by $0.930 billion, but increase pollution by $0.809 to $2.206 billion. |
| JEL: | L13 Q48 Q52 |
| Date: | 2022–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30297&r= |
| By: | Emmanuele Bobbio; Simon Brandkamp; Stephanie Chan; Peter Cramton; David Malec; Lucy Yu |
| Abstract: | Electricity markets balance supply and demand with price. Historically, this price response has come almost entirely from supply. However, when much of supply is intermittent or inflexible, price responsive demand becomes essential for reliability and resiliency. We measure how responsive consumers are to price in Britain from July 2020 to July 2021 with half-hourly individual-household data. Our sample includes customers with a dynamic rate that tracks wholesale cost, as well as flat-rate customers used to control for weather and other factors. A one percent increase in price reduces demand by 0.26 percent. This elasticity is larger for consumers owning low-carbon technologies. This price response is sufficient to maintain system balance in extreme events even when most consumers are unresponsive. Regulators can encourage price responsive demand through retail choice and subsidize enabling technologies. Regulators can protect consumers with mandated hedging in dynamic plans. Low-income households benefit most from such policies. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:185&r= |
| 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: | énergie,pauvreté,électricité,précarité,chauffage,précarité énergétique,mal-logement |
| Date: | 2020–11–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03713500&r= |
| By: | Dan Welsby; Baltazar Solano Rodriguez; Pye Steve; Adrien Vogt-Schilb |
| Abstract: | The global low-carbon energy transition driven by technological change and government plans to comply with the Paris Agreement makes future gas demand, prices, and associated public revenues uncertain. We assess the prospects for natural gas production and public revenues from royalties and taxation of gas production in Latin American and the Caribbean under different levels of climate policy. We derive demand from a global energy model, and supply from a global natural gas field model and a global oil field model – for associated gas. We find that natural gas production and associated public revenue are strongly impacted by decarbonization efforts. The more stringent climate policy is, the lower the production of natural gas. Exporting natural gas from Latin America and the Caribbean does not help the rest of the world reduce greenhouse gas emissions. In scenarios consistent with limiting global warming well-below 2°C, incumbent producers and natural gas associated with oil dominate production, drastically limiting opportunities for new gas production in the region and increasing the amount of gas left in the ground. Reduced demand for gas produced from Latin America and the Caribbean is mainly driven by falling demand in the region itself, as energy demand in buildings, industry, and transportation shift towards electricity produced from zero-carbon sources. Cumulative public revenues from natural gas extraction by 2035 range between 42 and 200 billion USD. The lower end of the range reflects scenarios consistent with below 2°C warming. In this case, up to 50% of proven, probable, and possible (3P) reserves in the region (excluding Venezuela) remain unburnable – the paper provides estimates by country. Our findings confirm that governments cannot rely on revenues from gas extraction if the objectives of the Paris Agreement are to be met. Instead, they need to diversify their fiscal and export strategy away from dependence on gas production. More generally, climate objectives, energy policies and fiscal strategies need to be consistent. |
| Keywords: | net-zero,transition risk,unburnable carbon,climate change mitigation |
| Date: | 2022–08–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:halshs-03410049&r= |
| By: | Nouf Alsharif (Department of Economics, University of Sussex, BN1 9SL Falmer, United Kingdom); Sambit Bhattacharyya (Department of Economics, University of Sussex, BN1 9SL Falmer, United Kingdom) |
| Abstract: | We investigate the effects of giant oil discovery and boom-bust price cycle on manufacturing using a large dataset of up to 49481 two-digit industry-years across 136 countries over the period 1962 to 2012. We find that oil discovery reduces growth in manufacturing value added and wages. The effect on employment is insignificant. We also find strong association between oil discovery and manufacturing slowdown episodes. Oil price boom and bust both negatively affects manufacturing perhaps due to increasing input cost (boom) and declining demand (bust). We do not find any evidence in favor of a real exchange rate appreciation driven effect as outlined in standard Dutch Disease models. We speculate that the effect is primarily driven by an increase in the cost of locally sourced manufacturing input. |
| Keywords: | Oil discovery; Boom-Bust; Manufacturing growth |
| JEL: | D72 O11 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0222&r= |
| By: | Johan Brannlund; Geoffrey R. Dunbar; Reinhard Ellwanger; Matthew Krutkiewicz |
| Abstract: | Do technological improvements mitigate the potential damages from extreme weather events? We address this question using oil production and hurricane data from the Gulf of Mexico. We show that hurricane activity lowers well production and that stronger storms have larger impacts that persist for months after impact. Hurricanes also significantly increase the probability that oil assets are stranded, particularly when the hurricanes pass within 50km of an oil rig’s location. Regulations enacted in 1980 that required improved construction standards for rigs in the Gulf only modestly mitigated the short-run production losses caused by hurricanes. The 1980 regulatory reforms also modestly decreased the probability that leases permanently exited production. |
| Keywords: | Business fluctuations and cycles; Climate change; Potential output |
| JEL: | C22 C23 Q40 Q48 Q54 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:22-36&r= |
| By: | Ali Sekkach (UIT - Université Ibn Tofaïl); Nabil Boubrahimi (UIT - Université Ibn Tofaïl) |
| Abstract: | Morocco is an oil-importing country. This dependency raises the likelihood that changes in oil prices may have an impact on its economic growth. This study aims to investigate the existence of an impact of oil prices on economic growth for the period of 1990 to 2020 using the Autoregressive Distributed Lag (ARDL) model of Co-integration. Results show no significant relationship between oil prices, human capital formation and economic growth for the period of study. However, the increase in gross fixed capital formation has a significant positive impact on the Moroccan economy. |
| Abstract: | Le Maroc est un pays importateur de pétrole. Cette dépendance augmente la probabilité que les variations des prix du pétrole puissent avoir un impact sur sa croissance économique. Cette étude vise à étudier l'existence d'un impact des prix du pétrole sur la croissance économique pour la période de 1990 à 2020 en utilisant le modèle autorégressif à retards échelonnésou distribués(ARDL). Les résultats ne montrent aucune relation significative entre les prix du pétrole, la formation de capital humain et la croissance économique pour la période d'étude. Cependant, l'augmentation de la formation brute de capital fixe a un impact positif et significatif sur l'économie marocaine. |
| Keywords: | Oil price,economic growth,Morocco,ARDL model,GDP,Prix du pétrole,croissance économique,Maroc,modèle ARDL,PIB |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03748687&r= |
| By: | Matthew Higgins; Thomas Klitgaard |
| Abstract: | U.S. oil and gas production boomed during the years leading up to the pandemic. From 2011 to 2019, oil production more than doubled and dry natural gas production rose by more than half. Remarkably, these gains occurred despite lackluster investment spending and hiring. Instead, higher production came largely from productivity gains, via wider adoption of fracking technologies. More recently, production recovered sluggishly from the pandemic downturn despite a quick recovery in prices. Our analysis in this post suggests that slower productivity growth and investors’ demand for higher returns have made U.S. firms willing to boost output only at a higher threshold oil price. |
| Keywords: | oil; natural gas extraction; productivity; profits; multifactor productivity (MFP); United States; fracking; inflation |
| JEL: | E2 E31 |
| Date: | 2022–08–17 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:94656&r= |
| By: | Raveh, Ohad; Zhang, Yan |
| Abstract: | Does the discovery and operation of a nearby oil field carry long-term health consequences? Existing studies focus primarily on relatively short-term impacts, and disregard potential effects of mobility-driven external influences. We fill this gap by capitalizing on the unique features of the China Health and Retirement Longitudinal Study, which provides a comprehensive health survey of Chinese individuals while tracking the location of their residence over their lifetime. Matching the latter with the location of giant oil field discoveries, we undertake a difference-in-differences analysis of individuals born before and after a discovery, basing the treatment on proximity, to examine the impact of discoveries made as early as 1938 on objective health outcomes reported in 2011-2018. Our identification strategy rests on the plausible exogeneity of the timing, location, and exploitation of discoveries, and the examination of individuals who did not change residence locations for long periods since birth. We find that a discovery made within a range of approximately 60km significantly decreases the relative average long-run health conditions of individuals born after it, although these individuals are younger, and were born into a more developed environment. Specifically, their average share of individuals diagnosed with a chronic disease increases, in relative terms, by 25% in the long term. This effect is observed most notably in diseases related to the respiratory, digestive, and urinary systems. |
| Keywords: | Oil discoveries, health, long-term effects |
| JEL: | Q3 Q32 |
| Date: | 2022–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114059&r= |
| By: | Bigerna, Simona; D'Errico, Maria Chiara; Polinori, Paolo; Simshauer, Paul |
| Abstract: | Over time, Gulf Cooperation Council (GCC) countries have accumulated large oil portfolio revenues. But the world economy is seeking to reduce greenhouse gas emissions and in turn, its reliance on fossil fuel resources through ongoing investments in renewable energy resources. In this article, we construct oil portfolios for four of the GCC countries (viz. Kuwait, Saudi Arabia, United Arab Emirates, Oman) and focus on their top five importing counterparties. Portfolio returns (quantity and price) have been derived between 2008-2018 with volatility spillovers computed via Diebold and Yilmaz’s dynamic spillover index approach. The spillover analysis shows a consistent reallocation effect amongst spillover directions together with their generalized increases. The structural rigidity of oil demand was confirmed with ‘quantity’ Total Volatility Spillovers being lower than ‘price’ Total Volatility Spillovers. Analysis of net contributors for both kinds of volatility found China to be a “net transferer” in quantity spillovers, and India seemingly absorbing quantity and price shocks. We find economic policy uncertainty and rising renewable market shares significantly affects volatility spillovers in oil export portfolios. Although some degree of heterogeneity exists, greater deployment of renewables in importing nations reduces adverse impacts of oil market fluctuations. This result and broader ‘net-zero’ policy commitments means rising renewable market shares are predictable. For GCC countries, two consequential long run risks arise, viz. loss of revenues and stranded oil reserves, which has its own policy implications. |
| Keywords: | Gulf Cooperation Council countries; oil exports; total volatility spillovers; renewables; volatility determinants, energy security |
| JEL: | C32 C58 G32 O53 Q41 |
| Date: | 2022–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114164&r= |
| By: | Zhaobo Zhu (Audencia Business School); Licheng Sun (ODU - Old Dominion University [Norfolk]); Jun Tu (Singapore Management University); Qiang Ji (UCAS - University of Chinese Academy of Sciences [Beijing]) |
| Abstract: | This paper provides a novel perspective to the nexus of oil prices and stock markets by examining the impact of oil price shocks on stock market anomalies. After decomposing oil price shocks into three types (Kilian, 2009), we find that aggregate demand shocks have the strongest influence on stock market anomalies. In contrast, oil supply shocks and oil specific demand shocks have little impact. Similar results are also found in the industry analysis. Interestingly, the link between aggregate demand shocks and anomalies are the strongest among firms with either small size or high idiosyncratic risks. The documented effects are robust after controlling for investor sentiment as well as several well-known macroeconomic or market factors. Our findings are consistent with but also extend the results of Stambaugh, Yu, and Yuan (2012) in that we show that uncertainty also plays a role in explaining stock market anomalies. |
| Keywords: | Stock market anomalies,Oil supply shocks,Aggregate demand shocks,Oil specific shocks,Investor Sentiment |
| Date: | 2022–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03712237&r= |
| By: | Harb, Mustapha PhD; Malik, Jai PhD; Circella, Giovanni PhD; Walker, Joan L. PhD |
| Abstract: | Forty-three households in the Sacramento region representing diverse demographics, modal preferences, mobility barriers, and weekly vehicle miles traveled (VMT) were provided personal chauffeurs for one or two weeks to simulate travel behavior with a personally-owned, fully autonomous vehicle (AV). During the chauffeur week(s), the total number of trips increased on average by 25 percent, 85 percent of which were “zero-occupancy” (ZOV) trips (when the chauffeur is the only occupant). Average VMT for all households increased by 60 percent, over half of which came from ZOV trips. VMT increased most in households with mobility barriers and those with less auto-dependency but least in higher VMT households and families with children. Transit, ridehailing, biking, and walking trips dropped by 70 percent, 55 percent, 38 percent, and 10 percent, respectively. The results highlight how AVs can enhance mobility, but also adversely affect the transportation system. |
| Keywords: | Engineering, Travel behavior, vehicle miles of travel, autonomous vehicles, households, travel surveys |
| Date: | 2022–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt79g921rp&r= |
| By: | Jaller, Miguel; Xiao, Ivan; Dennis, Sarah; Rivera-Royero, Daniel |
| Abstract: | Last-mile delivery, in which companies deliver goods to the end consumers, is one of the costliest segments of the supply chain and can generate significant emissions. The demand for last-mile delivery has grown in recent decades because of the emergence of e-commerce, which has reshaped consumer behavior and how companies distribute goods. E-commerce has consistently been growing for more than a decade, and growth intensified during the COVID-19 pandemic. Although e-commerce is still in a fast growth phase, there is little understanding about how much it will grow, how it will impact the transportation system, and how these impacts might differ geographically. Researchers at the University of California, Davis developed a forecasting model to quantify the potential impacts of future e-commerce on emissions and transport activity under different scenarios with assumptions about penetration levels of various technologies (e.g., electrification, rush deliveries, crowdshipping, and automation/efficiency improvements). The researchers implemented the forecasting tool in six large metropolitan areas: New York, Los Angeles, San Francisco, Dallas, Washington D.C., and Chicago. These analyses can help planning agencies and local governments to better understand and manage the potential impacts of e-commerce. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Delivery service, Electronic commerce, Forecasting, Freight traffic, Impacts, Pollutants, Shopping trips, Vehicle miles of travel |
| Date: | 2022–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt2vb5j7x3&r= |
| By: | Jaller, Miguel; Xiao, Runhua; Dennis, Sarah; Rivera-Royero, Daniel; Pahwa, Anmol |
| Abstract: | This project aims to study the impacts of e-commerce on shopping behaviors and related externalities. The objectives are divided into five major tasks in this project. Methods used include Weighted Multinomial Logit (WMNL) models, time series forecasting, and Monte Carlo (MC) simulations. The American Time Use Survey (ATUS) and the National Household Travel Survey (NHTS) databases are used for identifying the independent and dependent variables for behavioral modeling. At the same time, the researchers collected all MSA population data from the U.S. Census Bureau and combined the shares of each variable from ATUS to generate a synthesized population, which serves as input into the MC simulation framework together with the behavioral model. This simulation framework includes the generation of shopping travel parameters and the calculation of negative externalities. The authors do this to estimate e-commerce demand and impacts every decade until 2050. The results and analyses provide information that supports the generation of shopping travel and the estimations of a series of negative externalities using MC simulation, which includes shopping travel parameters, last-mile delivery parameters, and emission rate per person. For different parameters, a unique probability distribution or a regression relation is obtained for different MSAs, and this distribution is fed into the subsequent MC simulation. Finally, the researchers simulated shopping behaviors for synthesized populations (until 2050) and to estimate the expected negative externalities. The MC simulation generates aggregate average vehicle miles traveled (VMT) and emissions (negative externalities) for different shopping activities in the planning years and different MSAs. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, E-commerce, shopping behavior, externalities, forecast, Monte Carlo simulation |
| Date: | 2022–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt46x4f1dr&r= |
| By: | ALFIERI Felice (European Commission - JRC); SANFELIX FORNER Javier Vicente (European Commission - JRC); BERNAD BELTRAN David (European Commission - JRC); SPILIOTOPOULOS Christoforos (European Commission - JRC); GRAULICH Kathrin; MOCH Katja; QUACK Dietlinde |
| Abstract: | This report is the final science for policy report supporting the revision of the EU Green Public Procurement (GPP) Criteria for Computers and Monitors, and the extension of these criteria to Smartphones.These EU GPP Criteria aim at helping public authorities to ensure that ICT equipment and services are procured in such a way that they deliver environmental improvements that contribute to European policy objectives for energy, climate change and resource efficiency, as well as reducing life cycle costs. The revision process has taken into account market and technical developments as well as the experience gained by stakeholders in the application of the previous version of criteria.These criteria for computers, monitors, tablets and smartphones focus on the most significant environmental impacts during their life cycle, which have been divided into four distinct areas: product lifetime extension; energy consumption; hazardous substances; end-of-life management. This set of criteria also includes a further category of criteria that apply to separate procurements for refurbished/remanufactured devices and related services.For each area of focus, one or more criteria are provided, accompanied by the background technical rationale and a summary of the stakeholder contributions that support the final version of each criterion. Procurers can apply the criteria and engage tenderers to reduce the life cycle environmental impacts of their activities, focusing on those areas presenting the most improvement opportunities from cost and market perspectives and for which performance can be verified. The identified procurement processes and final green criteria are also described in a separate document, published as a Staff Working Document of the Commission: SWD(2021) 57 final. Together these two documents aim to provide public authorities with orientation on how to effectively integrate these EU GPP criteria into their procurement processes. |
| Keywords: | Green Public Procurement, ICT, circularity, energy efficiency |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc124294&r= |
| By: | RODRIGUEZ QUINTERO Rocio (European Commission - JRC); VIDAL ABARCA GARRIDO Candela (European Commission - JRC) |
| Abstract: | Public authorities' expenditures in the purchase of goods, services and works (excluding utilities and defence) constitute approximately 14% of the overall Gross Domestic Product (GDP) in Europe, accounting for roughly EUR 1.8 trillion annually.Thus, public procurement has the potential to provide significant leverage in seeking to influence the market and to achieve environmental improvements in the public sector. This effect can be particularly significant for goods, services and works (referred to collectively as products) that account for a high share of public purchasing combined with the substantial improvement potential for environmental performance. The European Commission has identified (road) transport as one such product group.Road transport covers a wide scope of vehicles (cars, LCVs, L-category vehicles, buses and waste collection vehicles) and services (mobility services, public bus services, waste collection services and post and courier services). The main environmental issues at the use phase addressed by the criteria are GHG emissions, air pollutant emissions and noise emissions. The impacts from the manufacture of batteries used in electric vehicle are also considered, leading to criteria on minimum and extended warranty of batteries.This revision is meant to align the EU GPP criteria with the revised Clean Vehicle Directive. |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc127043&r= |
| By: | Kimon Keramidas (UGA - Université Grenoble Alpes); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA [2016-2019] - Université Grenoble Alpes [2016-2019]); Adrien Bidaud (LPSC - Laboratoire de Physique Subatomique et de Cosmologie - IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Keywords: | demand,recycling,CO2 capture,hydrogenin,zero-emissions steel |
| Date: | 2022–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03744624&r= |
| By: | Scott Fan (UCL - University College of London [London]); Elliot Gyllensvärd (UCL - University College of London [London]); Erich Farkas (UCL - University College of London [London]); Julian Schutzner (UCL - University College of London [London]) |
| Abstract: | This paper seeks to analyse the environmental effects of China's recent regulatory steps taken against cryptocurrencies and compare them with two policy alternatives. To evaluate the environmental impact, two baseline scenarios are used-a ban scenario and a no-ban scenario-which are then employed to compare China's intervention with two alternative policies; an emissions trading system or carbon taxes. It is estimated that China's decision to ban cryptocurrencies will result in a 25.7% reduction in CO2 emissions from the global Bitcoin network between mid-2021 and 2030. In comparison, under a hypothetical emission trading system (ETS) and carbon tax intervention the most stringent scenario is estimated to reduce global Bitcoin CO2 emissions by 2.9% and 8.5% between mid-2021 and 2030, respectively. Furthermore, this paper shows that the ETS and carbon tax are both restricted in their absolute ability to reduce CO2 emissions due to the difficulties associated with the practical implementation of such policies. This provides evidence for why, in terms of an environmental perspective, a cryptocurrency ban is the most effective policy in reducing the Bitcoin blockchain network's CO2 emissions. However, the paper also shows that the transition to Proof-of-Stake (PoS) blockchains may create an environment in which there is less of an argument for active government intervention in the cryptocurrency markets due to the protocol's high energy efficiency. |
| Date: | 2022–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03737234&r= |
| By: | Bigerna, Simona; D'Errico, Maria Chiara; Polinori, Paolo |
| Abstract: | Internal and external institutions play a crucial role in the firms’ decision-making process and their productivity. Along with internal institutional features, such as the corporate ownership structure, external institutions, such as the stringency of market and environmental regulations, shape the framework in which firms operate. This research explores the role of these determinants and their interactions in affecting the productivity changes of the power generating firms in 15 European countries between 2010 and 2016. In a first step, using the firm-level ORBIS dataset, we first the productivity changes over time of power generating companies (NACE Code Rev.2.3511) using the global Malmquist index. Then, in a second step, dynamic panel linear model is applied to investigate how the internal and external institutional variables affect the dynamic of the global Malmquist index. In a preliminary analysis a wide range of tests are performed to detect the presence of outliers, the returns to scale, the correlation among inputs, out- puts and the productivity indexes, the independence between the distribution of the productivity indexes and the second-stage institutional variables. The institutional variables are almost time-invariant, the procedure proposed by Kripfganz and Schwarz (2019) is applied to consistently identify the effects of time invariant variables. This new method provides valuable robustness against wrong assumptions on the exogeneity on the instruments. To capture the interplay among external 54 and internal institutional variables, interaction variables are used. Results highlight the need to fine-tune the environmental regulation with the firm-specific internal features, to avoid hindering firm-level productivity in the power generation sector. |
| Keywords: | Environmental and Market regulation, Time-Invariant Variables, Global Malmquist Index, Electricity Sector |
| JEL: | C2 L5 L9 O4 Q4 |
| Date: | 2022–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114157&r= |
| By: | De Ponti, Pietro; Romagnoli, Matteo |
| Abstract: | We study the European Union’s Emission Trading System (EU ETS) from a financial perspective. Using ARMA-eGARCH filtered volatilities, we first discuss the evolution of the volatility of EU ETS allowances’ returns from 2008 to 2021. Second, we study the degree of co-movement and interdependence between the EU ETS returns’ volatility and those of 37 large companies in industries subject to the System; to this end, we employ Wavelet Coherence and Volatility Spillovers Analyses. Despite spotting seasons of co-movement between volatilities in the markets under consideration, the market performances of the companies in our sample are not particularly responsive to the EU ETS dynamics, except for temporary seasons of interconnection in correspondence of relevant policy changes. |
| Keywords: | Financial Economics, Research Methods/ Statistical Methods |
| Date: | 2022–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:323874&r= |
| By: | Swanson, Andrew C. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Production Economics |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322442&r= |
| By: | Charlotte Demonsant (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Kevin Levillain (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Blanche Segrestin (CGS i3 - Centre de Gestion Scientifique i3 - MINES ParisTech - École nationale supérieure des mines de Paris - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The problem of climate change, and how to respond to it, is often confronted to a dilemma between social justice and efficacy of action. Systematically presented as a tradeoff between individual action and profit (Acquier & Aggeri, 2015), or social acceptability and efficacy (Klenert et al., 2018), or equity and efficiency (Bauer et al., 2020), the coupling between social justice and efficacy appears to be a theoretical and empirical knot for climate action. In this conceptual paper, we draw on the notion of framing to show that current mechanisms for climate action are based on the same frame of climate action. The frame of a "social dilemma" or "collective action problem" or "commons dilemma" situation underlies most of our thinking of climate action and forces to see climate action as individuals who are 1) interdependent because they are constrained by a common resource, but 2) independent in the way they derive value from this resource. Yet, this single framing is restrictive. While climate change has been framed in many ways, we propose that there is a need for research to properly frame climate action itself to access new strategies. We show that "common peril" situation which acknowledge an interdependence between values can be an alternative action frame and allow exploring new ways of thinking climate action. |
| Keywords: | Governance,climate change,collective action,framing,climate policy,equity |
| Date: | 2022–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03722106&r= |
| By: | Xiaoguang Ling |
| Abstract: | In this paper I examine the effects of ambient air pollution on birth outcomes in Norway. I find that prenatal exposure to ambient nitric oxide in the last trimester causes significant birth-weight and birth-length loss, whereas other ambient air pollutants such as nitrogen dioxide and sulfur dioxide appear to be at a safe level for the fetuses. Besides, newborns with disadvantaged parents are more affected by ambient nitric oxide. It worth noting that both average ambient nitric oxide pollution level and occasional high ambient nitric oxide pollution events in the third trimester affect the birth outcome adversely. The contribution of my work includes: First, I find an adverse effect of prenatal exposure to ambient nitric oxide on birth outcomes, which fills the long-standing knowledge gap. Second, by virtue of the large sample size and the sub-postcode geographic division in Norway, I can control for a rich set of spatial-temporal fixed effects in order to overcome much of the endogeneity problem caused by the self-selection for living area and delivery date. Furthermore, I study ambient air pollution problem in an environment with low-level pollution, which provides new evidence on the health effects of low-level ambient air pollution and at the same time avoids potential confounders such as water and soil pollution. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2208.06271&r= |
| By: | Claudia Teran-Escobar (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes, SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes); Sarah Duche (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Helene Bouscasse (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Sandrine Isoard-Gatheur (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes); Patrick Juen (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Lilas Lacoste (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes, PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Sarah Lyon-Caen (IAB - Institute for Advanced Biosciences / Institut pour l'Avancée des Biosciences (Grenoble) - CHU - Centre Hospitalier Universitaire [Grenoble] - INSERM - Institut National de la Santé et de la Recherche Médicale - EFS - Etablissement français du sang - Auvergne-Rhône-Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Sandrine Mathy (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); Estelle Ployon (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); 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); Philippe Sarrazin (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes); Remy Slama (IAB - Institute for Advanced Biosciences / Institut pour l'Avancée des Biosciences (Grenoble) - CHU - Centre Hospitalier Universitaire [Grenoble] - INSERM - Institut National de la Santé et de la Recherche Médicale - EFS - Etablissement français du sang - Auvergne-Rhône-Alpes - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes); Kamila Tabaka (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Carole Treibich (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); Sonia Chardonnel (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); Aina Chalabaev (SENS - Sport et Environnement Social - UGA - Université Grenoble Alpes) |
| Date: | 2022–07–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03739435&r= |
| By: | Gözlügöl, Alperen; Ringe, Wolf-Georg |
| Abstract: | Global consensus is growing on the contribution that corporations and finance must make towards the net-zero transition in line with the Paris Agreement goals. However, most efforts in legislative instruments as well as shareholder or stakeholder initiatives have ultimately focused on public companies. This article argues that such a focus falls short of providing a comprehensive approach to the problem of climate change. In doing so, it examines the contribution of private companies to climate change, the relevance of climate risks for them, as well as the phenomenon of brown-spinning (ie, the practice of public companies selling their highly polluting assets to private companies). We show that one cannot afford to ignore private companies in the net-zero transition and climate change adaptation. Yet, private companies lack several disciplining mechanisms that are available to public companies, such as institutional investor engagement, certain corporate governance arrangements, and transparency through regular disclosure obligations. At this stage, only some generic regulatory instruments such as carbon pricing and environmental regulation apply to them. The article closes with a discussion of the main policy implications. Primarily, we discuss and evaluate the recent push to extend climate-related disclosure requirements to private companies. These disclosures would not only help investors by addressing information asymmetry, but also serve a wide group of stakeholders and thus aim at promoting a transition to a greener economy. |
| Keywords: | private companies,net-zero transition,climate-related disclosures,brown-spinning,climate change,private equity |
| JEL: | G38 K22 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:lawfin:38&r= |
| By: | Bigerna, Simona; Choudhary, Piyush; Kumar Jain, Nikunj; Micheli, Silvia; Polinori, Paolo |
| Abstract: | Reliable electricity is a key factor in improving the living conditions of households and sustainable development of the country. Power outages restrict economic and social welfare of developing countries. This study used contingent valuation survey to elicit the factors affecting Indian household’s willingness to pay to avoid unanticipated power outages. The survey was outlined to ensure that a household gives preferences considering multiple aspects of the outages. The households were asked to state their willingness to pay for five different types of outages. Empirical data from 1043 Indian households were analyzed using double hurdle approach. The econometric results indicate that the households’ willingness to pay to avoid power outage strictly depend on the length of outages ranging, on average, from 30.2 INR (2 hours) to INR. 245.6 (12 hours). Further income and environmental attitude of respondents positively influence higher WTP to avoid power outages. Our findings provide useful insights for policy makers and utility companies to design more reliable and customer centric energy generation and distribution models. |
| Keywords: | Power outages; contingent valuation; willingness to pay; residential electricity |
| JEL: | C24 C93 D12 Q41 |
| Date: | 2022–08–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:114160&r= |
| By: | Luis Miguel Galindo Paliza; Bridget Hoffman; Adrien Vogt-Schilb (Inter-American Development Bank - Inter-American Development Bank) |
| Abstract: | Latin America and the Caribbean must respond to the challenge of climate change while making progress with other sustainable development goals. How much will it cost to meet climate change goals in this context? This work reviews the evidence on the costs of meeting the goals the goals of the Paris Agreement and the sources of finance available to do so in the region. Its main thesis is that climate action does not consist solely or primarily of additional spending, but also requires a massive redirection of existing financial flows. The climate goals cannot be achieved without addressing other sustainable development goals intrinsically related to climate, such as those related to energy, transportation, water, agriculture, and ecosystem conservation, among others. Furthermore, climate action is closely linked to social spending since social conditions such as poverty, inequality, and lack of access to basic health services exacerbate vulnerability to climate change. Finally, the transition to a decarbonized and resilient economy must be fair. A so-called just transition means maximizing socioeconomic benefits, minimizing, or compensating transition costs, and involving all affected parties in decision-making processes. Consequently, climate action is also linked to competitiveness, education levels, labor markets, and social institutions. We find that responding to the climate crisis requires annual spending on the provision of infrastructure services of between 2% to 8% of GDP and annual spending to address a variety of social challenges of between 5% and 11% of GDP. This will involve aligning in total from 7% to 19% of annual GDP, representing from US$470 billion to US$1,300 billion of infrastructure and social spending in 2030, with sustainable, resilient, and decarbonized development goals. The benefit of this redirection will be far greater than its costs because it will avoid the worst impacts of climate change and generate economic, social, fiscal, and environmental benefits. Specific financing sources, such as green taxes and sustainable bonds, can finance part of the effort. However, to redirect public and private spending and foreign investment into solutions consistent with climate goals, governments will also need to reform policies and regulations in all sectors. Comprehensive climate strategies can help identify the necessary transformations to move toward a resilient, carbon-neutral economy in the region by 2050. Development banks can directly finance a small part of the necessary spending and support the design and implementation of reforms to redirect existing financial flows. |
| Abstract: | América Latina y el Caribe deben enfrentar el desafío del cambio climático al mismo tiempo que avanzan otros objetivos de desarrollo sostenible. ¿Cuánto costará hacer frente? Este trabajo revisa la evidencia sobre los recursos necesarios y las fuentes de financiamiento disponibles para cumplir con los objetivos del Acuerdo de Paris en la región. Su tesis principal es que la acción climática no consiste única o principalmente en un gasto adicional, sino que requiere de una reorientación masiva de los flujos financieros existentes. No pueden alcanzarse los objetivos climáticos sin atender otros objetivos de desarrollo sostenible intrínsicamente relacionados al clima, como los relacionados a la energía, el transporte, el agua, la agricultura, y la conservación de ecosistemas, entre otros. Además, la acción climática está estrechamente ligada al gasto social, ya que desempeños sociales como la pobreza, la desigualdad y la falta de acceso a servicios de salud básicos exacerban la vulnerabilidad al cambio climático. Finalmente, la transición a una economía descarbonizada y resiliente debe ser justa, es decir debe maximizar beneficios socioeconómicos, minimizar o compensar costos de transición, e involucrar a todas las partes afectadas en los procesos de decisión. La acción climática esta entonces ligada a la competitividad, el nivel de educación, los mercados laborales, y las instituciones sociales. Encontramos que atender la crisis climática requiere un gasto en la provisión de servicios de infraestructura de entre 2% y 8% del PBI, y un gasto para atender diversos desafíos sociales entre 5% y 11 % del PBI. Ello implica alinear en total entre 7% y 19% del PBI anual que representará entre US$470 mil millones y 1,300 mil millones de gasto en infraestructura y de gasto social en 2030 con objetivos de desarrollo sostenible, resiliente y descarbonizado. La mayoría del esfuerzo consiste en redirigir flujos existentes. El beneficio de esta reorientación tendrá un valor muy superior a su monto, al permitir evitar los peores impactos del cambio climático y generar beneficios económicos, sociales, fiscales, y ambientales. Fuentes específicas, como impuestos verdes y bonos sostenibles, permiten financiar parte del esfuerzo. Para redirigir el gasto público, privado, y la inversión extranjera hacia soluciones consistentes con los objetivos climáticos, los gobiernos también necesitaran reformar las políticas y regulatorias en todos los sectores. Estrategias climáticas comprensivas pueden ayudar a identificar las transformaciones en todos los sectores necesarias para avanzar hacia una economía resiliente y carbono-neutral en la región en 2050. Los bancos de desarrollo pueden financiar directamente una parte pequeña del gasto necesario y apoyar el diseño y la implementación de reformas que permitan redirigir los flujos financieros existentes. |
| Date: | 2022–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03720397&r= |
| By: | Per Krusell; Anthony A. Smith Jr. |
| Abstract: | The economic effects of climate change vary across both time and space. To study these effects, this paper builds a global economy-climate model featuring a high degree of geographic resolution. Carbon emissions from the use of energy in production increase the Earth's (average) temperature and local, or regional, temperatures respond more or less sensitively to this increase. Each of the approximately 19,000 regions makes optimal consumption-savings and energy-use decisions as its climate (or regional temperature) and, consequently, its productivity change over time. The relationship between regional temperature and regional productivity has an inverted U-shape, calibrated so that the high-resolution model replicates estimates of aggregate global damages from global warming. At the global level, then, the high-resolution model nests standard one-region economy-climate models, while at the same time it features realistic spatial variation in climate and economic activity. The central result is that the effects of climate change vary dramatically across space---with many regions gaining while others lose---and the global average effects, while negative, are dwarfed quantitatively by the differences across space. A tax on carbon increases average (global) welfare, but there is a large disparity of views on it across regions, with both winners and losers. Climate change also leads to large increases in global inequality, across both regions and countries. These findings vary little as capital markets range from closed (autarky) to open (free capital mobility). |
| JEL: | H23 Q54 R13 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30338&r= |
| By: | Abiry, Raphael; Ferdinandusse, Marien; Ludwig, Alexander; Nerlich, Carolin |
| Abstract: | We develop a two-sector incomplete markets integrated assessment model to analyze 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 per tonne of carbon is 4 times more effective. JEL Classification: E51, E62, Q54 |
| Keywords: | 2-sector model, carbon taxation, climate change, green quantitative easing, integrated assessment model |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20222701&r= |
| By: | Florian Favreau (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie) |
| Abstract: | Companies in the extractive sector implement local content measures in the areas in which they operate. These measures – training, education, employment, infrastructure, health – must benefit local populations. Companies report on these activities by publishing the information required by the Non-Financial Reporting Directive (NFRD). The literature and the exploratory analysis of local content clauses appearing in extractive contracts published over the last three years (2018-2020) by the Extractive industry transparency initiative, show that the reform of the NFRD should provide for a precise definition of the notion of local population and a precise measurement of its satisfaction, for example through the use of the notion of consent (FPIC). |
| Abstract: | Les entreprises du secteur extractif mettent en oeuvre des mesures de local content, sur les territoires sur lesquelles elles opèrent. Ces mesures – formation, enseignement, emploi, infrastructures, santé – doivent bénéficier aux populations locales. Les entreprises rendent compte de ces activités en publiant les informations prévues dans la Non financial reporting directive (NFRD). La littérature et l'analyse exploratoire des clauses de local content qui apparaissent dans les contrats extractifs publiés ces trois dernières années (2018-2020) par l'Extractive industry transparency initiative, montrent que la réforme de la NFRD devrait prévoir une définition précise de la notion de population locale et une mesure de sa satisfaction, par exemple au travers de l'utilisation de la notion de consentement (CLPE). |
| Keywords: | Non-Financial reporting directive (NFRD),Extractive sector,Energy transition,Employability,Local populations,GreenDeal,Secteur extractif,Transition énergétique,Employabilité,Populations locales,Reporting |
| Date: | 2021–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03633698&r= |
| By: | Andreas Fazekas; Christopher Bataille; Adrien Vogt-Schilb (Inter-American Development Bank - Inter-American Development Bank) |
| Abstract: | Getting to net-zero emissions is necessary to limit global warming to well under 2 °C and towards 1.5 °C, which are the temperature goals of the Paris Agreement. More than 50 countries globally have set targets to reach net-zero emissions, typically by 2050, and most others are working on similar goals. Achieving these targets requires transformations in the electricity, transport, agriculture, land-use, buildings, industry, and waste-management sectors. While solutions exist to transition to a carbon-neutral economy, including both technology and behavioral changes, which often come with economic, social, or development benefits, many barriers prevent their uptake. We compile evidence from the academic and gray literature to identify 15 sectoral transformations that allow the achievement of net-zero greenhouse gas emissions. We then list barriers that prevent their uptake, such as hurdles related to infrastructure, regulations, public and private finances, information, and political economy issues. Finally, we provide more than 50 examples of sector-level government interventions that can lift these barriers, such as building infrastructure, reforming regulations and subsidies, providing information and capacity building, and managing distributional impacts. Governments can use this information to inform the design of comprehensive climate strategies that translate the long-term net-zero emission goal into a roadmap of required transformations in each sector, and then work on designing and implementing government interventions at the national, regional, or local levels to enable them. |
| Keywords: | climate change mitigation,decarbonization,carbon-neutrality,implementation,policy reform,investment,sector policy |
| Date: | 2022–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03742125&r= |
| By: | Cordero, Martha |
| Abstract: | El objetivo principal de este documento es analizar los flujos de inversión hacia Centroamérica, Cuba, Haití, México y la República Dominicana (subregión norte de América Latina y el Caribe) en los siete sectores que la Comisión Económica para América Latina y el Caribe (CEPAL) identificó como dinamizadores del desarrollo sostenible en el documento de su período de sesiones de 2020. Para cumplir con ese objetivo, el documento se divide en tres partes: en la primera se estudian las características principales de los siete sectores; en la segunda se analizan los flujos de inversión mundial en esos sectores durante el período enero de 2015 a junio de 2021; y en la tercera, se identifican y estudian los flujos en los países de la subregión. |
| Keywords: | INVERSION EXTRANJERA DIRECTA, DESARROLLO ECONOMICO, DESARROLLO SOSTENIBLE, DESARROLLO INDUSTRIAL, FUENTES DE ENERGIA RENOVABLES, ENERGIA ELECTRICA, TECNOLOGIA DIGITAL, TURISMO, INDUSTRIA FARMACEUTICA, ECONOMIA VERDE, ECONOMIA AMBIENTAL, FOREIGN DIRECT INVESTMENT, ECONOMIC DEVELOPMENT, SUSTAINABLE DEVELOPMENT, INDUSTRIAL DEVELOPMENT, RENEWABLE ENERGY SOURCES, ELECTRIC POWER, DIGITAL TECHNOLOGY, TOURISM, PHARMACEUTICAL INDUSTRY, GREEN ECONOMY, ENVIRONMENTAL ECONOMICS |
| Date: | 2022–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:47980&r= |
| By: | Estrada, Javier H.; Rodríguez, Víctor; Ventura Ruiz, Víctor Hugo |
| Abstract: | El gas natural ha sido el combustible más consumido en México desde 2014. Su participación en la canasta energética supera el 48% y sigue en ascenso. Desde hace dos décadas ha sido el energético con mayor dinamismo y ha superado el crecimiento de la demanda de electricidad y de la economía1. Como la producción no ha logrado seguirle el paso a la demanda2, la brecha se ha tenido que cerrar con importaciones que hoy representan el 70% del consumo y hasta el 93% si se excluye el gas seco que consume la industria petrolera3. Las importaciones seguirán creciendo a menos que la política de autosuficiencia, seguridad y soberanía de la presente administración resulte exitosa. El objetivo de este estudio es analizar la situación del gas natural en México, las proyecciones de producción, consumo e importación, los problemas por resolver, las oportunidades y disyuntivas, las implicaciones de la nueva política energética en conexión con la transición energética, así como las posibles sinergias con los mercados emergentes de gas natural en Centroamérica y el Caribe. |
| Keywords: | GAS NATURAL, RECURSOS ENERGETICOS, RECURSOS NATURALES, SEGURIDAD ENERGETICA, POLITICA ENERGETICA, DESARROLLO INDUSTRIAL, INTEGRACION ECONOMICA, TENDENCIAS ECONOMICAS, NATURAL GAS, ENERGY RESOURCES, NATURAL RESOURCES, ENERGY SECURITY, ENERGY POLICY, INDUSTRIAL DEVELOPMENT, ECONOMIC INTEGRATION, ECONOMIC TRENDS |
| Date: | 2022–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:47981&r= |
| By: | Grazier, Emma |
| Keywords: | Environmental Economics and Policy, Resource/Energy Economics and Policy, Research Methods/Statistical Methods |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:322312&r= |
| By: | David A. Weisbach; Samuel 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. |
| Keywords: | climate change, carbon taxes, leakage, border adjustments |
| JEL: | F18 H23 Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_9858&r= |
| By: | Serraglio, Diogo Andreola; Schraven, Benjamin; Burgos Cuevas, Natalia |
| Abstract: | Whereas South American countries are experiencing increased population movements in the context of climate change, the international climate governance agenda calls for the adoption of specialised legislation and for enhanced cooperation among different policy frameworks. The revision and update of the Nationally Determined Contributions (NDCs) provide a window of opportunity to mainstream human mobility discussions in climate policy frameworks and, thus, support the uptake of effective measures to address the topic. This briefing paper provides an overview of how the climate change-human mobility nexus has been addressed in the NDCs submitted thus far by South American countries and identifies pathways towards improved management of population movements in revised NDCs. To date, a partial integration of the human mobility perspective prevails: References to the topic indicate a slow - but progressive - acknowledgment of the impacts of a changing climate in vulnerable communities, which may include human displacement. Given the urgent need to move forward from the recognition of the topic to the establishment of effective measures to tackle forced population movements associated with the impacts of climate change, the updating of NDCs - currently under way in the region - entails an opportunity to incorporate strategies aimed at enhancing the management of human mobility. Ongoing discussions linked to the inclusion of the human mobility dimension should happen in a holistic manner, taking socio-environmental approaches into consideration. Human displacement and adaptation to climate change are akin processes that need to be aligned with mitigation and related measures. An improved adaptation component of NDCs depends on the participation of distinct actors (such as national departments and agencies, as well as non-governmental and civil society organisations focussed on climate adaptation) at the national level, and not only those dealing with mitigation strategies. Likewise, it should take the incorporation of practical and evidence-based measures into account. These include, for instance, methods to promote the consultation and effective participation of affected communities and strategies to strengthen their resilience. Furthermore, revised NDCs should call for governance and legal frameworks that include a clear definition of roles and the establishment of effective measures, rooted in the commitment to protect the human rights of affected and vulnerable populations. Revised NDCs should set up policy options to prepare for and respond to human displacement, aiming to reduce communities' vulnerability and exposure. The recognition of human mobility in the context of climate change as a common challenge faced by South American countries entails a window of opportunity to enhance the development of effective measures to address the topic, as well as to foster the implementation of coherent long-term strategies that go beyond short-term political priorities. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:diebps:42022&r= |
| By: | Toshi H. Arimura (Waseda University); Elke D. Groh (University of Kassel); Miwa Nakai (Fukui Prefectural University); Andreas Ziegler (University of Kassel) |
| Abstract: | Based on data for more than 2,400 citizens in Japan, this paper empirically examines the effect of climate-related identity in private and organizational contexts on revealed climate protection activities, measured through incentivized donations. To identify causal effects, we include the concept of priming in our framed field experiment. In line with previous studies, our econometric analysis reveals that environmental attitudes are strongly positively correlated with climate protection activities. However, we cannot confirm causal effects of climate-related attitudes since the private climate-related treatment has no significant effect. In contrast, the organizational climate-related treatment has a significantly positive effect on donations of employed persons for climate protection. This result is especially driven by a significant effect at the intensive margin. It suggests possible spillovers from organizational environmental and climate protection activities on individual climate protection activities so that climate protection in companies, institutions, or other organizations has the potential to increase private climate protection. Our results thus suggest that the stimulation of organizational climate protection activities by climate policy measures such as taxes or subsidies can lead to a double dividend, i.e. to direct climate protection and to climate protection activities of persons who are employed in these organizations. Our empirical analysis also reveals that the estimated effect of the organizational climate-related treatment is particularly strong in the small sub-group of executive officers, managers of firms, and self-employed persons. This result suggests that higher individual responsibility and decision-making authority as well as compe-tences, also in terms of climate-related decisions, lead to stronger causal effects of organizational on private climate protection activities. |
| Keywords: | Climate protection activities, climate-related identity, private and organizational contexts, priming, non-state actors, framed field experiment |
| JEL: | Q54 Q58 D91 C93 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202229&r= |
| By: | Matthew Kotchen |
| Abstract: | This paper asserts that reporting of the ratio of welfare gains to tax revenue should be standard protocol in economic analyses of externality correcting taxes. That this comparison might matter is somewhat of a “blind spot” in most economic analyses, for it plays virtually no role when economists recommend taxes to internalize externalities. A simple model illustrates how the ratio of welfare gains to tax revenue plays a central role in a political economy and efficiency framing of Pigouvian type taxes. The analysis also shows intuitive results about how the ratio is increasing in the marginal external costs and the equilibrium elasticity to a tax. The second part of the paper illustrates the wide range of potential results with application of carbon taxes to different fuels in the United States. For example, assuming a social cost of carbon (SCC) and a carbon tax equal to $50 per tonne, the central estimates imply ratios of 12.1 for coal, 0.36 for natural gas, and very close to zero for diesel and gasoline. When all four fuels are combined, the ratios indicate a more proportional balance between welfare gains and tax revenue, with overall estimates ranging between 0.7 and 2.8. The paper concludes with a general appeal for economists to pay more attention to the relative magnitudes of efficiency gains and tax revenue when analyzing and advocating for externality correcting taxes. |
| JEL: | H2 H21 H23 Q38 Q4 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30321&r= |
| By: | Belkacem OUCHENE (Warocqué School of Business & Economics, University of Mons (Belgium )) |
| Abstract: | To follow the path of economic development, developed countries have long relied, on the income from their natural resources. This is notably the case for Australia (minerals), Canada (oil, minerals) and the United States (oil) but also Germany, France and England (coal). However, there are recent experiences of countries which have based part of their economic development on their natural resources. Examples of Norway (petroleum), Chile (copper ore) and Botswana (diamonds) provide an illustration. Despite these success stories, empirical studies generally show the existence of a negative relationship between their natural resource wealth and their economic growth, known as “Dutch Disease†. Generally, countries with large stocks of natural resources struggle to guarantee sustainable growth of their GDP unlike the other resource-poor countries. With significant oil deposits, is Algeria one of the countries that have fallen into Dutch disease? This contribution will attempt to answer as well as to identify, if applicable, the conditions that led to the appearance of the phenomenon and to propose a solution to get out of it. |
| Keywords: | Natural resources, Dutch disease, governance, corruption |
| JEL: | G3 G30 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:crc:wpaper:2109&r= |
| By: | TONINI Davide (European Commission - JRC); GARCIA-GUTIERREZ Pelayo (European Commission - JRC); NESSI Simone (European Commission - JRC) |
| Abstract: | To support the EU Plastic Strategy with quantitative figures, this study estimates the potential environmental effects achieved with recycling of selected polymers that are relevant at EU market level, applying Life Cycle Assessment (LCA) and building upon previous research conducted by the Joint Research Centre. The polymers investigated include Polyethylene Terephthalate (both amorphous and bottle-grade), High-density Polyethylene, Low-density Polyethylene, Polypropylene, Polystyrene, Expanded Polystyrene, Polyurethane, and Polyvinylchloride. The primary focus is on the impact category Climate Change, reflecting the effects of Greenhouse Gas emissions. Two different perspectives are considered in the analysis: i) the total system-wide effects that can be achieved when recycling is implemented in place of alternative treatment routes currently applied in the EU (waste management or system perspective) and ii) the savings attributable to the user of recycled polymer in place of an equivalent amount of virgin material (product perspective). Using recycled polymers in plastic product manufacture, GHG savings, expressed as Climate Change benefits, in the order of about 147-1 493 kg CO2-eq./t recycled polymer were quantified relative to using virgin material. At a system-wide level, GHG emission savings, expressed as Climate Change benefits, in the order of about 1 140-3 573 kg CO2-eq./t polymer waste can be achieved when one additional tonne of plastic waste is recycled in place of being sent to the alternative treatments applied today, which include a mix of incineration and landfilling. Such system-wide level savings account for both the replacement of virgin production (as in the product perspective) and the avoidance of current incineration and landfilling practices. The results of this study are highly relevant for circular economy policies related to plastics and for informing, through quantitative figures, how the circular economy can contribute to the objectives of the EU Green Deal, especially in respect to decarbonisation. |
| Keywords: | Recycling, LCA, GHG, Plastics, CO2, Circular Economy, Waste |
| Date: | 2021–05 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc122455&r= |
| By: | Daniel Engler (University of Kassel); Gunnar Gutsche (University of Kassel); Amantia Simixhiu (University of Kassel); Andreas Ziegler (University of Kassel) |
| Abstract: | Based on the well-known observation that social norms can guide individual behavior, this paper empirically examines the causal effect of related information interventions on revealed climate protection activities, measured through incentivized donations. In our field-experimental setting, we differentiate between descriptive social norms by providing information about individual climate protection activities in Germany, injunctive social norms by providing information about what people in Germany think about the need for climate protection activities, and a combination of both social norms. Based on representative survey data for more than 1,600 individuals in Germany, our econometric analysis shows some weak evidence that information about both descriptive and injunctive social norms increases donations for climate protection. The decomposition of this estimated average treatment effects reveals that the corresponding treatment particularly has a significantly positive effect at the extensive margin, i.e. on the probability to donate for climate protection. These results suggest that a combined information intervention referring to both descriptive and injunctive social norms is at least able to stimulate the general willingness for climate protection. In addition, our analysis of heterogeneous treatment effects reveals that strong social preferences (in terms of altruism and trust) and high environmental attitudes (in terms of environmental awareness and ecological policy identification) induce significantly positive information treatment effects on donations for climate protection. This result suggests that individuals in Germany with a strong environmental and social orientation do not only behave directly more climate-friendly, but can also be better stimulated by information about descriptive and/or injunctive social norms. |
| Keywords: | Climate protection activities, descriptive and injunctive social norms, information interventions, heterogeneous treatment effects, framed field experiment |
| JEL: | Q54 D64 D83 D91 C93 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202230&r= |
| By: | Bonev, Petyo; Knaus, Michael |
| Abstract: | This is the first paper to study simultaneously the effect of environmental policies on individual pro-environmental behaviors and on pro-environmental preferences. Using a novel dataset that matches data on waste policies with data on behaviors and preferences, we find that environmental policies (1) decrease the amount of waste produced and (2) impact positively the pro-environmental attitudes of individuals. |
| Keywords: | Environmental policy, waste policy, crowding intrinsic motivation |
| JEL: | D02 D04 H41 Q53 Q58 |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2022:07&r= |
| By: | Andreas Fazekas; Christopher Bataille; Adrien Vogt-Schilb (Banco Interamericano de Desarollo) |
| Abstract: | Alcanzar cero emisiones netas es necesario para limitar el calentamiento global a menos de 2 C y cerca de 1,5 C, que son los objetivos de temperatura del Acuerdo de París. Más de 50 países de todo el mundo han establecido objetivos para alcanzar emisiones netas cero, generalmente para 2050; y la mayoría de los demás están trabajando en objetivos similares. Lograr estos objetivos requiere transformaciones en varios sectores como el de la electricidad, el transporte, la agricultura, el uso de la tierra, los edificios, la industria y la gestión de residuos. Para realizar la transición a una economía neutra en carbono existen varias soluciones que incluyen la tecnología y los cambios de comportamiento (que a menudo vienen con beneficios económicos, sociales o de desarrollo), sin embargo, existen también muchas barreras impiden su adopción. Recopilamos evidencia de la literatura académica y gris para identificar 15 transformaciones sectoriales que permitan alcanzar cero emisiones netas de gases de efecto invernadero. Luego enumeramos las barreras que impiden su adopción, como los obstáculos relacionados con la infraestructura, las regulaciones, las finanzas públicas y privadas, la información y los problemas de economía política. Finalmente, brindamos más de 50 ejemplos de intervenciones gubernamentales en el plano sectorial que pueden eliminar estas barreras, como la construcción de infraestructura, la reforma de regulaciones y subsidios, el suministro de información y el desarrollo de capacidades, y la gestión de los impactos distributivos. Los gobiernos pueden usar esta información para comunicar el diseño de estrategias climáticas integrales que traduzcan el objetivo de cero emisiones netas a largo plazo en una hoja de ruta de las transformaciones necesarias en cada sector, y luego trabajar en el diseño e implementación de intervenciones gubernamentales a un nivel nacional, regional o local que las habilite. |
| Keywords: | Mitigación del cambio climático,descarbonización,neutralidad en carbono,implementación,reforma política,inversión,política sectorial |
| Date: | 2022–07–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03742126&r= |