nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒11‒14
53 papers chosen by
Roger Fouquet
London School of Economics

  1. Understanding the Dynamics of the Renewable Energy Transition: A Determinant Index Approach By Fatih Yilmaz
  2. Does information substitute or complement energy? - A mediation analysis of their relationship in European economies By Theile, Philipp; Farag, Markos; Kopp, Thomas
  3. Twin Transitions of Decarbonisation and Digitalisation: A Historical Perspective on Energy and Information in European Economies By Roger Fouquet; Ralph Hippe
  4. Towards Green Transition in EU regions By Claire Nauwelaers; Richard Harding; Inmaculada Perianez-Forte; Eskarne Aguirre; Karel Haegeman
  5. The Effect of Information and Subsidy Measures on Adoption of Solar Lanterns : An Application of the BDM Bidding Mechanism in Rural Ethiopia By Mekonnen,Alemu; Hassen,Sied; Jaime,Marcela; Toman,Michael A.; Zhang,Xiao-Bing
  6. Walking a tightrope: financial regulation, climate change, and the transition to a low-carbon economy By Demekas, Dimitri; Grippa, Pierpaolo
  7. Electricity Retail Rate Design in a Decarbonized Economy: An Analysis of Time-Of-Use and Critical Peak Pricing By Tim Schittekatte; Dharik S. Mallapragada; Paul L. Joskow; Richard Schmalensee
  8. Towards a Just Coal Transition Labor Market Challenges and People’s Perspectives from Lower Silesia By Christiaensen, Luc; Ferré, Céline; Gajderowicz, Tomasz Janusz; Wrona, Sylwia Michalina
  9. Energy transitions and labor market patterns in the U.S. coal industry By Michieka, Nyakundi M.; Graziano, Marcello; Musso, Marta; Fouquet, Roger
  10. Green vehicle routing problem: A state-of-the-art review By Mohammad Asghari; Seyed Mohammad Javad Mirzapour Al-E-Hashem
  11. Digging into the Technological Dimension of Environmental Productivity By Belloc, Filippo; Valentini, Edilio
  12. Factor prices and induced technical change in the industrial revolution By Otojanov, Ravshonbek; Fouquet, Roger; Granville, Brigitte
  13. Measure-valued processes for energy markets By Christa Cuchiero; Luca Di Persio; Francesco Guida; Sara Svaluto-Ferro
  14. The Impact of Oil Shocks on Sovereign Default Risk By Alturki,Sultan Abdulaziz M; Hibbert,Ann Marie
  15. On the OPSF and the Downstream Oil Industry Deregulation: Lead Us Not into Reversal Temptation and Deliver Us from Obfuscation By Navarro, Adoracion M.
  16. Global Crude Oil Storage Index: A New Benchmark for Energy Policy By Jennifer Considine; Philipp Galkin; Abdullah Aldayel
  17. Innovation Begets Innovation and Concentration: the Case of Upstream Oil & Gas in the North Sea By Michele Fioretti; Alessandro Iaria; Aljoscha Janssen; Clément Mazet- Sonilhac; Robert K Perrons
  18. Externalities of Policy-Induced Scrappage: The Case of Automotive Regulations By Connor R. Forsythe; Akshaya Jha; Jeremy J. Michalek; Kate S. Whitefoot
  19. The Incidence of Carbon Pricing: From Input-Output via Microsimulation to General Equilibrium By Böhringer, Christoph; Landis, Florian; Tovar, Miguel
  20. More than just a Price Decrease: Field Experimental Evidence on the Mechanisms of an Energy Efficiency Subsidy By Bartels, Lara; Werthschulte, Madeline
  21. Climate, Technology, Family Size; on the Crossroad between Two Ultimate Externalities By Gerlagh, Reyer
  22. Regime-Dependent Environmental Tax Multipliers : Evidence from 75 Countries By Schoder,Christian
  23. The Slow Demographic Transition in Regions Vulnerable to Climate Change By Dao, Thang; Kalkuhl, Matthias; Vasilakis, Chrysovalantis
  24. Power Market Sophistication and Sector Outcomes : A Focus on Social Performance, Electricity Reliability, and Renewable Energy Penetration By Doumbia,Djeneba
  25. Characterization of Ambient Air Quality in Selected Urban Areas in Uganda : A Low-Cost Approach By Lozano Gracia,Nancy; Bainomugisha,Engineer; Soppelsa,Maria Edisa; Okure,Deo
  26. ME-FINE: Mannheim European panel on Financial Indicators and Emissions By Germeshausen, Robert; Chlond, Bettina; Tchorzewska, Kinga; von Graevenitz, Kathrine
  27. The term structure of carbon premia By Dora Xia; Omar Zulaica
  28. How to Redistribute the Revenues from Climate Policy? A Dynamic Perspective with Heterogeneous Households By Eydam, Ulrich; Diluiso, Francesca
  29. Policy Complementarities in the Promotion of Electric Vehicles:Subsidies and Charging Infrastructure By Burra, Lavan Teja; Sommer, Stephan; Vance, Colin
  30. Driving Innovation? – Carbon Tax Effects in the Swedish Transport Sector By Brehm, Johannes; aus dem Moore, Nils; Gruhl, Henri
  31. China’s Carbon Market: Development, Evaluation, Coordination of Local and National Carbon Markets and Common Prosperity By Zhang, ZhongXiang
  32. The Effects of Climate Change on the Italian economy By Matteo Alpino; Luca Citino; Guido de Blasio; Federica Zeni
  33. Cost, Emission, and Macroeconomic Implications of Diesel Displacement in the Saudi Agricultural Sector: Options and Policy Insights By Hossa Almutairi; Marzio Galeotti; Baltasar Manzano; Axel Pierru
  34. The Role of Career Incentives in Environmental Regulation: Evidence from China’s Environmental One-Vote Veto Evaluation Regime By Jianxin Wu; Ziwei Feng; Chunbo Ma
  35. Behavioral and Neuroeconomics of Environmental Values By Phoebe Koundouri; Barbara Hammer; Ulrike Kuhl; Alina Velias
  36. Are Environmental Concerns Deterring People from Having Children? By Lockwood, Ben; Powdthavee, Nattavudh; Oswald, Andrew J.
  37. Renewable electricity consumption and economic growth: A comparative study of South Africa and Zimbabwe By Hlongwane, Nyiko Worship; Daw, Olebogeng David
  38. How Is the US Pricing Carbon? How Could We Price Carbon? By Joseph E. Aldy; Dallas Burtraw; Carolyn Fischer; Meredith Fowlie; Roberton C. Williams III; Maureen L. Cropper
  39. Mexico's "catch-22": The implications of being a trade and climate partner of the United States and the European Union By Lucatello, Simone
  40. The price of risk in residential solar investments By Petrovich, Beatrice; Carattini, Stefano; Wüstenhagen, Rolf
  41. Climate Change Mitigation: How Effective is Green Quantitative Easing? By Abiry, Raphael; Ludwig, Alexander; Ferdinandusse, Marien; Nerlich, Carolin
  42. Les conséquences économiques et sociales des sanctions internationales contre guerre de la Russie en Ukraine By Jacques Fontanel
  43. Data Analytics Diffusion in the UK Renewable Energy Sector: An Innovation Perspective By Harkaran Kava; Konstantina Spanaki; Thanos Papadopoulos; Stella Despoudi; Oscar Rodriguez-Espindola; Masoud Fakhimi
  44. Powering Up a Slow Charging Market: How do Government Subsidies Affect Charging Station Supply? By Luo, Zunian
  45. Incidence and Avoidance Effects of Spatial Fuel Tax Differentials: Evidence using Regional Tax Variation in Spain By Ander Iraizoz; José M Labeaga
  46. On the Drivers of Clean Production: Firms' Global Value Chain Positioning By Semrau, Finn Ole
  47. The Causal Effects of Long-Term PM2.5 Exposure on COVID-19 in India By Yamada,Takahiro; Yamada,Hiroyuki; Mani,Muthukumara S.
  48. A Successful Replication of "Dust Pollution From the Sahara and African Infant Mortality" By Cook, Nikolai M.
  49. Electricity grid tariffs for electrification in households: Bridging the gap between cross-subsidies and fairness By Claire-Marie Bergaentzl\'e; Philipp Andreas Gunkel; Mohammad Ansarin; Yashar Ghiassi-Farrokhfal; Henrik Klinge Jacobsen
  50. Presidential Address 2021: climate-change pledges, actions and outcomes By Tenreyro, Silvana; De Silva, Tiloka
  51. Municipal building codes and the adoption of solar photovoltaics By Carattini, Stefano; Figge, Béla; Gordan, Alexander; Löschel, Andreas
  52. "Building Back Better" in Practice: A Science-Policy Framework for a Green Economic Recovery after COVID-19 By Zachariadis,Theodoros; Giannakis,,Elias; Taliotis,Constantinos; Karmellos,Marios; Fylaktos,Nestor; Howells,Mark Idwal; Blyth,William James; Hallegatte,Stephane
  53. The Behavioral Effects of Carbon Taxes – Experimental Evidence By Grieder, Manuel; Baerenbold, Rebekka; Schmitz, Jan; Schubert, Renate

  1. By: Fatih Yilmaz (King Abdullah Petroleum Studies and Research Center)
    Abstract: Renewable energy is a key component of global energy transitions. To better identify its dynamics, this study constructs a composite index to measure countries’ renewable energy transition potential. Based on two decades of academic research, we identify 45 main enabling factors of the renewable energy transition. We classify these factors into seven subindices: economic factors, financial development, human capital, energy access, energy security, environmental sustainability and institutional infrastructure. We then aggregate the subindices into a composite index, which we call the renewable energy transition potential index. This index and its subindices are available for 149 countries for the period from 1990 to 2018.
    Keywords: Battery storage, Benefits of electricity trade, Business models, Climate change
    Date: 2022–02–28
  2. By: Theile, Philipp; Farag, Markos; Kopp, Thomas
    Abstract: In its decarbonization efforts, the European Union aims to decrease energy consumption through technological advances. One of the most prominent advances is the increased extension and utilization of digital information and communication technologies. However, there is little understanding of how precisely digitalization and energy consumption are related. This study aims to empirically analyze the impact and transmission channels of digitalization on energy consumption in the European Union. We build our empirical analysis in two steps. First, we employ the two-step sys-GMM estimator to examine the direct impact of digitalization on energy consumption, controlling for the effects of the mediation variables. Second, we use the causal mediation approach to estimate the relative importance of each mediation variable through which digitalization affects energy consumption. We rely on a sample of 28 European countries from 2007 to 2019. The empirical results suggest that digitalization significantly reduces energy consumption. We find that a 10% increase in digitalization reduces energy consumption by 0.4%, on average. The causal mediation analysis reveals that digitalization has an indirect positive effect on energy consumption through GDP per capita and industrial structure and an indirect negative impact through financial development and human capital.
    Keywords: Digitalization,Mediation Analysis,Energy Consumption,Digitalization indices,Embodied Energy,Panel data,Two-step sys-GMM
    JEL: C33 C50 Q41 Q43 Q55
    Date: 2022
  3. By: Roger Fouquet (Grantham Research Institute on Climate Change and the Environment, London School of Economics and Political Science (LSE)); Ralph Hippe (EU agency Cedefop)
    Date: 2022
  4. By: Claire Nauwelaers; Richard Harding; Inmaculada Perianez-Forte (European Commission - JRC); Eskarne Aguirre; Karel Haegeman (European Commission - JRC)
    Abstract: This report aims to contribute to the development of new models for regional and local authorities aiming to boost support for Green Transition of their economies through smarter innovation policies, using the smart specialisation approach. The report provides a detailed overview of the lessons learnt from five case studies on regions from across the European Union representing a diversity of approaches to using smart specialisation for Green Transition: the Basque Country in Spain, the Centro region in Portugal, the region of East & North Finland, the region of Western Macedonia in Greece and the region of West Netherlands. This report highlights the context-specific aspects of each region and the cross-cutting elements. Drawing together the different elements presented, the conclusion provides a summary overview of the findings and suggests pathways to innovation-led Green Transition for European regions.
    Keywords: Green Transition, EU regions, Smart Specialisation, Transformative innovation
    Date: 2022–09
  5. By: Mekonnen,Alemu; Hassen,Sied; Jaime,Marcela; Toman,Michael A.; Zhang,Xiao-Bing
    Abstract: Solar lanterns are a relatively inexpensive renewable-energy option for household lighting in developing countries. However, the transition to these lighting sources is slow. To understand why, this study uses the Becker-Degroot-Marschak bidding mechanism in a randomized field experiment to investigate the effect of information provision and subsidy policy instruments on the uptake of solar lanterns. Subjects’ willingness to pay tends to be low enough that most of them would purchase the solar lantern only if it is subsidized. Households with access to grid electricity have a lower willingness to pay and are less likely to adopt, while those using kerosene as a source of lighting are more likely to adopt. Access to credit also increases willingness to pay. Information treatments have limited impact: provision of different types of information about the private and public benefits of solar lantern use increases adoption only when it is combined with a high level of subsidies. Given the relatively low cost of solar lanterns, the results suggest that achieving universal electricity access under the United Nations’ Sustainable Development Goals by any means will require subsidizing access.
    Keywords: Energy and Mining,Energy and Environment,Energy Demand,Energy Technology&Transmission,Energy Policies&Economics,Renewable Energy,Rural and Renewable Energy
    Date: 2021–03–23
  6. By: Demekas, Dimitri; Grippa, Pierpaolo
    Abstract: As with the global financial crisis, there are once again demands on central banks and financial regulators to take on new responsibilities, this time for supporting the transition to a low-carbon economy. Regulators can indeed facilitate the reorientation of financial flows necessary for the transition. But they may find themselves walking a tightrope, having to balance exaggerated expectations against limited capabilities and political economy constraints. Their diagnostic and policy toolkits are still in their infancy. Expanding their legal mandates to take on these new, essentially political, responsibilities should be done through the political process and be accompanied by strengthened governance and accountability arrangements. Taking on these new responsibilities can also have potential pitfalls and unintended consequences on financial markets. Ultimately, central banks and financial regulators cannot deliver a low-carbon economy by themselves and should not risk being caught again in the role of ‘the only game in town’.
    Keywords: Financial stability; financial regulation; climate change; climate mitigation policy; low-carbon econmy; energy transition; OUP deal
    JEL: F3 G3 J1
    Date: 2022–09–14
  7. By: Tim Schittekatte; Dharik S. Mallapragada; Paul L. Joskow; Richard Schmalensee
    Abstract: Currently, most U.S. electricity consumers pay a constant price per kWh consumed that accounts for most of their bill. Ongoing developments in the power system increase efficiency gains that can be made from exposing consumers to widely varying wholesale spot prices. Pure spot pricing is not popular; consumers (and politicians) value price predictability and bill stability. We focus on second-best alternatives: time-of-use (TOU) and critical peak pricing (CPP). We introduce alternative assessment criteria tailored to a context with increasing intraday shiftable loads. Using historical data from CAISO, ERCOT and ISO-NE, we find that out-of-sample daily Spearman rank correlations between TOU rates and spot prices can be relatively high (averaging 0.7-0.8), and simulations confirm that TOU rates can reasonably replicate efficient load-shifting incentives (up to 60-70% of the potential). Our analysis suggests that TOU rates, especially when complemented with CPP, can be considerably more socially valuable than previously estimated.
    JEL: L94 L97 Q41 Q42
    Date: 2022–10
  8. By: Christiaensen, Luc; Ferré, Céline; Gajderowicz, Tomasz Janusz; Wrona, Sylwia Michalina
    Abstract: Part of a three-region set of papers analyzing coal-related labor market challenges in Poland, this paper focuses on Lower Silesia. The findings call for a more territorial-oriented approach to brokering the coal transition, rather than a sectoral one. First, while the number of people directly and indirectly affected by coal mine closures in Lower Silesia (~5,500) is relatively small compared to the total regional labor force (
    Keywords: Active Labor Market Policies; private investment in infrastructure; active labor market policy; coal sector; coal production; local economy; former soviet union; demand for coal; local labor market; small mine operation; source of energy; temporary income support; Oil & Gas; use of coal; mobility worker; Oil and Gas; high electricity demand; country case study; number of workers; private job creation; labor market context; coal mining sector; political economy dynamic; number of jobs; matching grant program; natural resource curse; coal mine; other sectors; mine closure; coal producer; affected worker; coal supply; economic diversification; alternative employment; labor policy; informal worker; Labor Policies; economic sector; vested interests; coal extraction; lignite mining; local good; photo credit; coal consumption; coal industry; based energy; displaced worker; economic shock; coal-fired power; value chain; remote community; employment outcome; contract terms; complementary activities; working condition; positive impact; regional priority; written contract; Job Quality; mining company; mining companies; generation capacity; labor code; union representation; surrounding community; pension benefit; social insurance; productivity gain; national policy; labor regulation; business environment; extractives industries; energy transition; long-term growth; political consideration; negative effect; government planning; available data; extraction technology; coal miner; mining operation; positive spillover; several countries; employment pattern; labor value; support energy; managing risk; energy generation; recent development; coal technology; job separation; domestic worker; market demand; smooth consumption; fiscal cost; reservation wage; labor demand; mining equipment; mine operator; fiscal health; electricity need; social dislocation; complementary policies; commodity price; severance pay; financial resource; public policy; environmental degradation; new job; government decision-making; marginal mine; job loss; rural district; wage employment; skill composition; household affect; entrepreneurship training; mining operator; coal type; policy stance; fundamental changes; market size; economic diversity; renewable source; replacement income; labor shedding; employment trend; employment data; primary sector; income rise; skilled service; political costs; global production; coal deposit; transition process; job shift; steel industry; energy infrastructure; income economy; job placement; still others; cleaner energy; government regulation; future labor; mining community; household income; social capital; fiscal solvency; regional economy; individual characteristic; particular country; institutional governance; soft skills; labor transition; production structure; qualifying criteria; adequate financing; energy need; coking coal; steel production; manufacturing process; energy mix; common feature; external factor; domestic coal; political will; export market; production increase; domestic economy; productivity increase; high wage; export opportunity; export opportunities
    Date: 2022–08–31
  9. By: Michieka, Nyakundi M.; Graziano, Marcello; Musso, Marta; Fouquet, Roger
    Abstract: The U.S. coal industry is in the midst of a transition. Changes in regulation and technological innovation from other fossils and renewables have affected its competitiveness. These could have significant impacts on the labor market where jobs could be lost. In this study, we investigate how changes in employment in the coal industry affect wages in 20 industries in 10 U.S. coal producing states. We assess how these transitions impact welfare programs, since coal producing regions are associated with higher poverty levels. Results show that in the long run, migration of coal workers decreased wages in the construction, manufacturing sectors. Point estimates reveal that an increase in separations of coal workers increase Supplemental Nutrition Assistance Program (SNAP) caseloads. In states where coal mining has a smaller contribution to GDP, an increase in coal employment increases SNAP caseloads.
    Keywords: Labor market dynamics
    JEL: I38 J21 J31 Q43 O13 R11
    Date: 2022–07–17
  10. By: Mohammad Asghari (AUT - Amirkabir University of Technology); Seyed Mohammad Javad Mirzapour Al-E-Hashem (ESC [Rennes] - ESC Rennes School of Business)
    Abstract: As energy overuse and generated pollution have a potential threat to our environmental and ecological conditions, many researchers have taken the initiative way to join the green campaign to prevent more damage to the environment. This paper investigates the main contributions related to the green vehicle routing problem (Green-VRP) and presents a classification scheme based on its variants considered in scientific literature, in particular, three major and applicable streams including internal combustion engine vehicles (ICEVs), alternative-fuel powered vehicles (AFVs), and hybrid electric vehicles (HEVs), and also several sub-categories for each of them. This systematic literature review intends to provide a comprehensive and structured survey of the state of knowledge and discuss the most important characteristics of the problems, including techniques of formulation, solution methodologies, and areas of application. This paper presents different analytical summary tables for each variant to emphasize some main features that provide the direction of the development of researches. Finally, to spot future avenues, gaps in the literature are distinguished to illustrate how new contributions are different from traditional problems.
    Keywords: Green vehicle routing problem,Internal combustion engine vehicles,Alternative-fuel powered vehicles,Hybrid electric vehicles,Systematic literature review
    Date: 2021–01
  11. By: Belloc, Filippo; Valentini, Edilio
    Abstract: We propose a mixture model approach to identify locally optimal technologies and to dissect environmental productivity (output produced per unit of emission) into a technological and a managerial component. For a large sample of plants covered by the EU ETS, we find that the share of plants adopting the frontier technology is about 21%. We also find that the average output gains that plants could reach by adopting optimal technologies and managerial practices are 75% and 80% respectively. These results remain qualitatively similar after addressing endogeneity of emissions. Finally, we match EU ETS data with balance-sheet data on parent companies and find that better environmental technologies tend to be adopted by larger, listed, multi-plant and international companies, while older firms and firms with higher intangibles assets intensity more commonly show improved environmental management. Our results suggest that existing technologies have large unexploited potentials and deliver important insights for policy.
    Keywords: Environmental Economics and Policy, Production Economics, Productivity Analysis
    Date: 2022–10–25
  12. By: Otojanov, Ravshonbek; Fouquet, Roger; Granville, Brigitte
    Abstract: Using historical data for the 1700–1914 period, this paper analyses the nature and direction of technical change in Britain. The evidence in this paper indicates that, over this long period, labour-saving technology adoption was a major response to changes in relative factor prices, thus supporting the hypothesis that ‘induced innovation’ was a major driver of technical change during the British industrial revolution. Labour saving was made possible and sustained by capital-augmenting and energy-augmenting technical change coupled with continuous capital accumulation and abundant energy supplies. This process placed the British economy on a higher capital–labour ratio equilibrium, and was the primary force driving sustained productivity growth, which further raised wages and living standards.
    Keywords: factor-saving technical change; induced innovation; industrial revolution; Grantham Research Institute on Climate Change and the Environment at the London School of Economics; and the ESRC Centre for Climate Change Economics and Policy (CCCEP); ES/R009708/1
    JEL: N73
    Date: 2022–09–26
  13. By: Christa Cuchiero; Luca Di Persio; Francesco Guida; Sara Svaluto-Ferro
    Abstract: We introduce a framework that allows to employ (non-negative) measure-valued processes for energy market modeling, in particular for electricity and gas futures. Interpreting the process' spatial structure as time to maturity, we show how the Heath-Jarrow-Morton approach can be translated to this framework, thus guaranteeing arbitrage free modeling in infinite dimensions. We derive an analog to the HJM-drift condition and then treat in a Markovian setting existence of non-negative measure-valued diffusions that satisfy this condition. To analyze mathematically convenient classes we build on Cuchiero et al. (2021) and consider measure-valued polynomial and affine diffusions, where we can precisely specify the diffusion part in terms of continuous functions satisfying certain admissibility conditions. For calibration purposes these functions can then be parameterized by neural networks yielding measure-valued analogs of neural SPDEs. By combining Fourier approaches or the moment formula with stochastic gradient descent methods, this then allows for tractable calibration procedures which we also test by way of example on market data. We also sketch how measure-valued processes can be applied in the context of renewable energy production modeling.
    Date: 2022–10
  14. By: Alturki,Sultan Abdulaziz M; Hibbert,Ann Marie
    Abstract: The paper examines the impact of oil shocks on sovereign credit default swaps (CDS) for the G10 countries and major oil-exporting countries. The results show that oil demand shocks have a uniformly negative impact on CDS spreads. In contrast, oil supply shocks increase the spreads of the G10 countries, but reduce the spreads of oil-exporting countries. Using quantile regressions, the findings show that oil demand shocks affect spreads across the conditional distribution, while oil supply shocks mostly influence the upper quantiles of spread changes. Furthermore, a two-state Markov-switching modeling confirms a significant non-linearity in the impact of oil shocks.
    Keywords: Oil&Gas,Energy and Environment,Energy Demand,Energy and Mining,Financial Sector Policy,Public Finance Decentralization and Poverty Reduction,Public Sector Economics,Financial Crisis Management&Restructuring
    Date: 2021–02–16
  15. By: Navarro, Adoracion M.
    Abstract: The recent calls for the revival of the Oil Price Stabilization Fund (OPSF) are tantamount to a call for a policy reversal, that is, reversal of the downstream oil industry deregulation that began in 1998. The history of the OPSF presents important lessons for policymakers. Petroleum price setting by fiat and using a price stabilization fund to smooth the price resulted in mismatches between payments to the fund and claims against it. The general public then ended up subsidizing oil consumers through subsidies from the national budget. When faced with political pressures, policymakers also lacked discipline in sticking to the price stabilization purpose of the OPSF, such as failing to implement the increase in the regulated price when the magnitude was large and allowing the use of the fund for something not directly related to price stabilization. Settling the legal challenges to OPSF credits and payments with finality also took time. Price distortion also resulted in cross-subsidization that created mismatches between demand and environmental objectives. Although there remain a few countries that have price stabilization funds, all of them are finding it hard to sustain funds operation and dealing with large deficits. Besides, the general direction of reforms globally is to remove fossil fuel subsidies. Therefore, rather than policy reversal, reform durability should be pursued. Although the present oil crisis triggers questions on downstream oil industry deregulation, this should be seen as an opportunity to lock in reforms through a dedicated communication campaign that protects the public from disinformation and enables them to understand the premise in and the promises of the deregulation. Policymakers can also make additional commitments to stay the course through legislative amendments and supplemental issuances that cement and improve, rather than reverse, the reforms. Among the proposed legislative amendments, the ones that aim to strengthen and improve the deregulation law are the proposals on minimum inventory requirement and retail price unbundling. Having a strategic oil reserve also deserves examination, which, if proven feasible and affordable, should be viewed as strictly a buffer during instances of severe oil supply disruption rather than as a regular price stabilization tool. Lastly, having targeted assistance programs that facilitate direct income transfer to the poor is preferable to the OPSF and implementing these effectively is also a way to lock in reforms. Comments to this paper are welcome within 60 days from the date of posting. Email
    Keywords: oil price stabilization fund;oil price regulation;downstream oil industry deregulation;policy reversal;oil crisis;targeted assistance;fossil fuel subsidies;price unbundling;oil stockpiling;strategic oil reserves
    Date: 2022
  16. By: Jennifer Considine; Philipp Galkin; Abdullah Aldayel (King Abdullah Petroleum Studies and Research Center)
    Abstract: The global oil market dwarfs other commodity markets. Its size and role in the energy and industrial value chains underscore its significant economic and geopolitical impacts. Thus, the consequences of oil price fluctuations extend far beyond the oil industry and can be viewed as a barometer of trends in the global economy. Several oil price benchmarks currently compete in the global market. The most popular ones, such as Brent or West Texas Intermediate (WTI), are backed by a sufficient supply of the underlying crude. They also meet the criteria for efficient trading, hedging and speculating — including having sufficient liquidity, developed futures markets, low transaction costs and strong institutional support.
    Keywords: Allocations, Commodities
    Date: 2021–09–13
  17. By: Michele Fioretti (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Alessandro Iaria (University of Bristol [Bristol]); Aljoscha Janssen (SIS - Singapore Management University); Clément Mazet- Sonilhac (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Robert K Perrons (QUT - Queensland University of Technology [Brisbane])
    Abstract: We investigate the effect of technology adoption on competition by leveraging a unique dataset on production, costs, and asset characteristics for North Sea upstream oil & gas companies. Relying on heterogeneity in the geological suitability of fields and a landmark decision of the Norwegian Supreme Court that increased the returns of capital investment in Norway relative to the UK, we show that technology adoption increases market concentration. Firms with prior technology-specific know-how specialize more in fields suitable for the same technology but also invest more in high-risk-high-return fields (e.g., ultra-deep recovery), diversifying their technology portfolio and ultimately gaining larger shares of the North Sea market. Our analyses illustrate how technology adoption can lead to market concentration both directly through specialization and indirectly via experimentation.
    Keywords: Market structure,Competition,Specialization,Experimentation,Upstream oil and gas markets,North Sea,Innovation,Adoption
    Date: 2022–05–24
  18. By: Connor R. Forsythe; Akshaya Jha; Jeremy J. Michalek; Kate S. Whitefoot
    Abstract: Many transportation policies indirectly affect vehicle travel and resulting externalities by inducing changes in vehicle scrappage rates. We leverage the staggered removal of state-level safety inspection programs across the United States within an instrumental variables (IV) framework to produce the first estimates of the fleet-size elasticities of fleet travel distance and gasoline consumption. Our first-stage estimates indicate that the removal of safety inspections caused a 3-4% increase in fleet size on average. Our IV estimates of the fleet-size elasticities of fleet travel distance and gasoline consumption have 95% confidence sets that imply rejection of an assumption commonly used in prior analyses that these elasticities are equal to one. Calculations based on fleet-size elasticities of one result in substantial overestimates of the externality costs from increases in travel and fuel use from delays in scrappage due to the removal of safety inspections.
    JEL: H23 H70 Q58 R48
    Date: 2022–10
  19. By: Böhringer, Christoph; Landis, Florian; Tovar, Miguel
    JEL: Q58 H22 H23 C67 C68 D57 D58
    Date: 2022
  20. By: Bartels, Lara; Werthschulte, Madeline
    JEL: C93 D9 H23 Q40
    Date: 2022
  21. By: Gerlagh, Reyer (Tilburg University, School of Economics and Management)
    Date: 2022
  22. By: Schoder,Christian
    Abstract: This paper reviews the main transmission channels of an environmental tax reform shifting the tax burden from labor to carbon emission. The analysis uses a simple open-economy macro model and estimates dynamic environmental tax as well as personal income tax multiplier effects on output and employment for a panel of 75 high- and low-income countries from 1994 to 2018. Tax policy changes are identified by cyclically adjusting the tax revenues. The estimated environmental tax multiplier effects on output range from 1 on impact to 1.8 at the peak. Personal income tax multipliers are slightly higher, ranging from 1.4 to 2.3. While income taxes reduce employment, environmental taxes do not. Environmental tax multipliers are highly regime dependent: they are close to zero or statistically insignificant unless taxes are increased when output contracts, fuel prices are high, the environmental tax levels are high, or the carbon intensity of output is low. Commodity trade-exposed countries face higher tax multipliers. This analysis concludes that, compared with income taxes, environmental taxes can be a less contractionary source of revenues to support the post-COVID-19 fiscal consolidation efforts, especially in countries that are at the beginning of their decarbonization efforts.
    Keywords: Energy and Environment,Energy and Mining,Energy Demand,Climate Change Mitigation and Green House Gases,International Trade and Trade Rules,Taxation&Subsidies
    Date: 2021–04–26
  23. By: Dao, Thang (University of Roehampton); Kalkuhl, Matthias (Mercator Research Institute on Global Commons and Climate Change (MCC)); Vasilakis, Chrysovalantis ((CEE) Centre D'Ètudes de L'Emploi)
    Abstract: We consider how the demographic transition has been shaped in regions that are the least developed and the most vulnerable to climate change. Environmental conditions affect intra-household labor allocation because of the impacts on local resources under the poor infrastructural system. Climate change causes damage to local resources, offsetting the role of technological progress in saving time that women spend on their housework. Hence, the gender inequality in education/income is upheld, delaying declines in fertility and creating population momentum. The bigger population, in turn, degrades local resources through expanded production. The interplay between local resources, gender inequality, and population, under the persistent effect of climate change, may thus generate a slow demographic transition and stagnation. We provide empirical confirmation for our theoretical predictions from 44 Sub-Saharan African countries.
    Keywords: climate change, local resources, fertility, gender inequality in education, slow demographic transition
    JEL: J11 J16 Q01 Q20 Q54 Q56
    Date: 2022–10
  24. By: Doumbia,Djeneba
    Abstract: This paper exploits a novel and comprehensive dataset on power market structure over 1989–2020 to analyze the relationship between power market sophistication—defined as the move toward a more competitive market—and final sector outcomes: social performance, electricity reliability, and renewable energy penetration. Unlike most previous studies on the performance of power sector reforms, the paper relies on the de facto implementation of reforms rather than de jure reform adoption. The results of panel regression models suggest that moving from vertically integrated utility models toward more sophisticated power markets is associated with higher electricity access, better consumer affordability, larger renewable energy penetration, and lower system average interruption duration index. The results also highlight that, for certain steps in power market sophistication, improvements in sector outcomes are greater. For instance, moving from vertically integrated utility models to single buyer models is associated with relatively larger improvements in access to electricity and electricity reliability, while moving from wholesale competition to retail competition models is associated with a relatively larger penetration of renewable energy.
    Keywords: Energy Policies&Economics,Electric Power,Energy and Environment,Energy Demand,Energy and Mining,Energy Sector Regulation,Renewable Energy,Rural and Renewable Energy
    Date: 2021–03–17
  25. By: Lozano Gracia,Nancy; Bainomugisha,Engineer; Soppelsa,Maria Edisa; Okure,Deo
    Abstract: Many cities and urban centers around the world experience high air pollution episodes attributable to increased anthropogenic alterations of natural environmental systems. World Health Organization estimates indicate strong exceedances of prescribed limits in developing countries. However, the evidence on local pollution measures is limited for such cities and Uganda is no exception. Informed by the practical realities of air quality monitoring, this paper employs a low-cost approach using passive and active monitors to obtain characterization of pollution levels based on particulate matter 2.5, nitrogen dioxide, and ozone over a six-month period (starting in December 2018) for selected urban centers in three of the four macro-regions in Uganda. This is the first attempt to comprehensively assess pollution levels at a near-national level in Uganda. A combination of distributed stationary monitors and mobile monitors installed on motorcycle taxis (boda-boda) was employed in selected parishes to obtain spatiotemporal variations in the pollutant concentrations. The results suggest that seasonal particulate levels heavily depend on precipitation patterns with a strong inverse relation, which further corroborates the need for longer monitoring periods to reflect actual seasonal variations. Informed by the observed level of data completeness and quality in all the monitoring scenarios, the paper highlights the practicability and potential of a low-cost approach to air quality monitoring and the potential to use this information to inform citizens.
    Keywords: Pollution Management&Control,Air Quality&Clean Air,Brown Issues and Health,Health Care Services Industry,Intelligent Transport Systems,Social Risk Management,Disaster Management,Hazard Risk Management
    Date: 2021–01–20
  26. By: Germeshausen, Robert; Chlond, Bettina; Tchorzewska, Kinga; von Graevenitz, Kathrine
    Abstract: The Mannheim European panel on Financial Indicators and Emissions (ME-FINE) is a new European company-level dataset, combining financial information from Bureau van Dijk's Orbis database with data on pollutant emissions from the European Pollutant Emission Register (EPER) and its successor, the European Pollutant Release and Transfer Register (E-PRTR). The current version of ME-FINE spans from 1998 to 2016 and focuses on companies in the manufacturing and energy supply sectors in the EU-15 plus Hungary and Norway. The dataset covers around 70 percent of observations in EPER and E-PRTR in those sectors and countries, representing about more than half of the emissions of the most common (air) pollutants. [...]
    Date: 2022
  27. By: Dora Xia; Omar Zulaica
    Abstract: This paper explores a carbon premium – the extra yield investors demand to buy bonds issued by firms with more greenhouse gas emissions – in the US corporate bond market. We analyse a carbon premium along two channels, via panel regression. One is the preference channel, under which the premium reflects investors' preference for firms that they perceive as being more environmentally responsible, all else equal. The other is the risk channel, where investors perceive more carbon-intensive firms as more prone to default. We test the preference channel by investigating the relationship between corporate bond yields and carbon emissions, while controlling for the probability of default (PD) and other bond characteristics. We examine the risk channel by analysing how carbon emissions affect the PD. We validate the existence of carbon premia in both channels, with the premium being larger for firms in more energy-intensive sectors. Moreover, the premium differs across maturities, giving rise to a humpshaped term structure of carbon premia, reaching its highest level at the belly of the curve (maturities of 15–20 years). For instance, a 50% reduction in carbon emissions by an energy-intensive firm can reduce credit spread of a bond in the belly issued by the firm by over 10 basis points.
    Keywords: climate change, carbon emissions, corporate bond spread, term structure.
    JEL: G12 G30 Q54
    Date: 2022–10
  28. By: Eydam, Ulrich; Diluiso, Francesca
    Abstract: In light of climate change mitigation efforts, revenues from climate policies are growing, with no consensus yet on how they should be used. Potential efficiency gains from reducing distortionary taxes and the distributional implications of different revenue recycling schemes are currently debated. To account for households heterogeneity and dynamic trade-offs, we study the macroeconomic and welfare performance of different revenue recycling schemes using an Environmental Two-Agent New-Keynesian model, calibrated on the German economy. We find that, in the long run, welfare gains are higher when revenues are used to reduce distortionary taxes on capital, but this comes at the cost of higher inequality: while all households prefer labor income tax reductions to lump-sum transfers, only financially unconstrained households are better off when reducing taxes on capital income. Interestingly, we find that over the transition period relevant to meet short-medium run climate targets, labor income tax cuts are the most efficient and equitable instrument.
    Keywords: double dividend,E-DSGE,environmental tax reform,non-Ricardian households,revenue recycling,redistribution
    JEL: E62 H23 H31 Q58
    Date: 2022
  29. By: Burra, Lavan Teja; Sommer, Stephan; Vance, Colin
    JEL: C54 H54 O18 Q58 R48
    Date: 2022
  30. By: Brehm, Johannes; aus dem Moore, Nils; Gruhl, Henri
    JEL: H23 L91 Q54 Q55 Q58
    Date: 2022
  31. By: Zhang, ZhongXiang
    Abstract: To achieve the commitments to both carbon peaking and carbon neutrality, China should focus on those policies of significant impact on emissions reduction at the lowest cost. Launching the national carbon market with the power generation sector is a good start point in this direction. Since its operation, the carbon price has not experienced sharp fluctuations, and falls within a range of CNY40~60 per ton. The block agreement transaction dominates trading, but with an average discount rate of 9.6% in block agreement, the aforementioned carbon prices overestimate the overall carbon prices. While the overall compliance rate measured against entities reached about 94.4%, there are significant differences across provinces, with compliance rate ranging from 82.9% to a full 100% compliance. Entities engaging in trading are mainly for compliance, and therefore transaction is driven by compliance. This article argues that the development of the carbon market requires further reform of the electricity pricing mechanism and the coordinated development of various related markets. With respect to national carbon trading scheme itself, the article discusses the areas where more work needs to be done to ensure that the national carbon emissions trading scheme functions properly. This involves carbon emissions trading legislation, further improvement in the rules conducive to the use of carbon emissions trading as a market tool, and the expansion of the participating industries and the scope of the carbon market in terms of diversifying market players and increasing trading varieties. Given the co-existence of the national carbon market and regional carbon market pilots, the article suggests the specific areas for the regional carbon markets to take the initiative to strengthen the synergistic effects of national carbon market. Furthermore, the article strongly recommends to continuously increase the proportion of carbon allowances auctions, and to set up a transformation fund from the proceeds of paid allocation of allowances to support the transformation and upgrading of regions with low levels of development and technology in China.
    Keywords: Community/Rural/Urban Development, Environmental Economics and Policy, International Development
    Date: 2022–10–25
  32. By: Matteo Alpino (Bank of Italy); Luca Citino (Bank of Italy); Guido de Blasio (Bank of Italy); Federica Zeni (World Bank)
    Abstract: This volume summarizes the results of the research project "The Effects of Climate Change on the Italian Economy." The project consists of 17 papers that (a) measure the impact of climate change on economic activity, particularly that of the most exposed sectors (e.g., agriculture or tourism); (b) analyze some of the policies for adaptation and mitigation (e.g., simplifications of the permitting regime for investments in renewables or carbon pricing schemes).
    Keywords: Climate change, Italian economy
    JEL: Q54 Q58
    Date: 2022–10
  33. By: Hossa Almutairi; Marzio Galeotti; Baltasar Manzano; Axel Pierru (King Abdullah Petroleum Studies and Research Center)
    Abstract: We assess the extent to which the implementation of Saudi Vision 2030 policies enhances the Saudi economy’s resilience to oil price and production shocks, and to the productivity of tradable and non-tradable goods. We extend Blazquez et al.’s (2021) dynamic stochastic general equilibrium model to capture the country’s economic diversification policies and build a resilience index based on impulse responses to shocks.
    Keywords: Applied general model, Discount rate, Discounting
    Date: 2022–09–23
  34. By: Jianxin Wu; Ziwei Feng; Chunbo Ma
    Abstract: This paper applies a difference-in-differences approach to examine the effectiveness of China’s One-Vote Veto environmental regulation regime, which links pollution reduction targets with local officials’ promotion. Using a rich set of data for 286 Chinese cities, we show that the new political incentive induced significant tradeoff between economic growth and environmental protection. The regime shifts significantly reduced industrial SO2 emissions; however, the environmental improvement was limited only to the reduction of the targeted pollutants that are linked to performance evaluation. Firm-level evidence shows that emission reduction was mainly achieved by reducing new polluting production activities, increasing pollution abatement capacity and improving abatement performance. It is also found that compliance with emissions reduction targets indeed increases the promotion chances of local officials.
    Keywords: Environmental Economics and Policy, Public Economics
    Date: 2022–10–31
  35. By: Phoebe Koundouri; Barbara Hammer; Ulrike Kuhl; Alina Velias
    Abstract: Identifying mechanisms of real-life human decision-making is central to inform effective, human-centric public policy. Here, we report larger trends and synthesize preliminary lessons from behavioral and neuroeconomic investigations focusing on environmental values. We review the currently available evidence at different levels of granularity, from insights of how individuals value natural resources (individual level), followed by evidence from work on group externalities, common pool resources, and social norms (social group level), to the study of incentives, policies, and their impact (institutional level). At each level, we identify viable directions for future scientific research and actionable items for policy-makers. Coupled with new technological and methodological advances, we suggest that behavioural and neuroeconomic insights may inform effective strategy to optimize environmental resources. We conclude that the time is ripe for action, to enrich policies with scientifically grounded insights, making an impact in the interest of current and future generations.
    Keywords: behavioural economics, neuroeconomics, environmental values,individual decision-making, common pool resources, policy
    Date: 2022–10–24
  36. By: Lockwood, Ben (University of Warwick); Powdthavee, Nattavudh (University of Warwick); Oswald, Andrew J. (University of Warwick)
    Abstract: Are 'green' environmental concerns -- about climate change, biodiversity, pollution -- deterring today's citizens from having children? This paper, which we believe to be the first of its kind, reports preliminary evidence consistent with that increasingly discussed hypothesis. Our study has a simple longitudinal design. It follows through time a random sample of thousands of initially childless men and women in the UK. Those individuals who are committed to a green lifestyle are found to be less likely to go on to have offspring. Later analysis adjusts statistically for a large set of potential confounders, including age, education, marital status, mental health, life satisfaction, optimism, and physical health. Because there might be unobservable reasons why those who are pro-environmental may be less likely to want a child, and to try to ensure that the finding cannot be explained by selection and omitted variables, the paper explores Oster's (2019) bounds test. The paper's final estimated effect-size is substantial: a person entirely unconcerned about environmental behaviour is found to be approximately 60% more likely to go on to have a child when compared to a deeply committed environmentalist.
    Keywords: fertility, child-bearing, climate change, environment, green
    JEL: J1 Q50
    Date: 2022–10
  37. By: Hlongwane, Nyiko Worship; Daw, Olebogeng David
    Abstract: The study conducts a comparative analysis of the relationship between renewable electricity consumption and economic growth in South Africa and Zimbabwe. The study utilises time series data spanning from 1990 to 2019 collected from the World Bank and International Energy Agency (IEA). The study performed the Dickey-Fuller Generalised Least Squares and Phillips-Perron unit root test, ARDL Bounds test for cointegration and optimal lags models. Empirical results revealed that in the short run renewable electricity consumption has a negative impact on economic growth in both countries. In the long run, however, in South Africa it has a negative statistically significant effect in South Africa and a positive statistically insignificant effect in Zimbabwe on economic growth. The study recommends the revision of renewable electricity policies in both countries to boost economic growth significantly in both countries.
    Keywords: Renewable electricity consumption, Economic growth, South Africa, Zimbabwe, ARDL model.
    JEL: C32 O13 O43 O47 Q42 Q43
    Date: 2022–10–09
  38. By: Joseph E. Aldy; Dallas Burtraw; Carolyn Fischer; Meredith Fowlie; Roberton C. Williams III; Maureen L. Cropper
    Abstract: Economists have for decades recommended that carbon dioxide and other greenhouse gases be taxed—or otherwise priced—to provide incentives for their reduction. The United States does not have a federal carbon tax; however, many state and federal programs to reduce carbon emissions effectively price carbon—for example, through cap-and-trade systems or regulations. There are also programs that subsidize reductions in carbon emissions. At the 2022 meetings of the American Economic Association, the Society for Benefit-Cost Analysis brought together five well-known economists—Joe Aldy, Dallas Burtraw, Carolyn Fischer, Meredith Fowlie, and Rob Williams—to discuss how the United States does, in fact, price carbon and how it could price carbon. Maureen Cropper chaired the panel. This paper summarizes their remarks.
    JEL: H23 Q54 Q58
    Date: 2022–10
  39. By: Lucatello, Simone
    Abstract: Under the current global environmental governance and trade regimes, several initiatives, such as the new United States-Mexico-Canada Agreement, the European Union's European Green Deal, and regional free trade agreements the European Union has implemented with strategic partners like Mexico, are prompting a vibrant discussion on how trade agreements can be used as a potential mechanism to create enforceable cross-border commitments to tackle climate change. However, to cut greenhouse gas emissions within a few decades, a decisive departure from current trends in emission and trade policies is required by all countries, both developed and developing. As a result, politicians, scholars and experts around the world have looked to trade agreements as a possible tool for reaching global climate commitments, either related to or independent from the Paris Agreement. But how well do these agreements suit this purpose? Carbon-intensive products worldwide increased when tariff reductions were implemented, resulting in destructive practices for many countries, particularly those in the Global South. For countries such as Mexico, the nexus between trade and climate change is not easy to address: the country is trapped between its ambitions to play a role in global trade platforms as an industrial manufacturer and agricultural exporter and its desire to be recognized as a global actor in climate change policy and actions within the global community. Despite recent changes in climate and environmental politics under the administration of President Andrés Manuel López Obrador (2018-2024), Mexico is a middle-income country with a long-standing tradition as climate champion and environmental leader in the Global South and needs to make clear where it stands under the new global environmental and ecological transition scenario imposed by the climate crisis and trade-related issues. The "entanglement" of global trade treaties and commitments under the current climate crisis, represents a major shift for Mexico. Caught between the new US-Mexico-Canada Agreement, the EU-Mexico Trade Agreement and the possible impacts of the European Green Deal, Mexico needs to define its role in trade and environmental terms alongside giant partners such as the United States and the European Union, while defending its role as a regional power. If the European Green Deal takes off as an international driver for deepening climate and sustainable development goals with European Union strategic partners, it remains to be seen how Mexico will respond to the challenge. In this paper we address the possible implications for Mexico under each of these instruments. We look at the interplay between them, explore the linkages and possible conflictual pathways, and "disentangle" the schemes in which trade and climate change are interconnected. Mexico may be trapped in a "catch-22" situation. Environmental provisions embedded in trade treaties provide critical benefits to the country, but this often comes at the expense of "unacceptable" environmental enforcement measures that can put at risk national development plans, especially at a time when the environment and climate change issues are not at the top of the current administration's political agenda.
    Keywords: European Union,Mexico,United States,trade agreements,climate change
    Date: 2022
  40. By: Petrovich, Beatrice; Carattini, Stefano; Wüstenhagen, Rolf
    Abstract: Households are key actors in decarbonizing our economy, especially when it comes to investments in a decentralized energy system, such as solar photovoltaics (PV). The phasing-out of feed-in tariffs, and unexpected policy changes in the wake of an increasingly polarized climate debate, require residential PV investors to bear new risks. Conducting a discrete choice experiment coupled with a randomized informational treatment among potential residential solar investors in Switzerland, we test whether policy and market risks deter households from investing in solar. We find that salient policy risk reduces households' intention to invest in solar, especially for risk-averse individuals. Conversely, households seem less sensitive to market risk: residential solar investors accept volatile revenues, as long as a price floor for excess electricity sold to the grid is guaranteed. Our study suggests that keeping perceived policy uncertainty low is more important for residential solar investors than fully hedging against electricity market risk.
    Keywords: discrete choice experiment; information asymmetries; market risk; policy risk; residential solar investors; risk preferences
    JEL: D81 O33 Q42
    Date: 2021–02–01
  41. By: Abiry, Raphael; Ludwig, Alexander; Ferdinandusse, Marien; Nerlich, Carolin
    JEL: E51 E62 Q54
    Date: 2022
  42. By: Jacques Fontanel (CESICE - Centre d'études sur la sécurité internationale et les coopérations européennes - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes)
    Abstract: Threatened by the enlargement of NATO and by the accession of former friendly countries to the European Union, Russia has engaged in a "special operation" against Ukraine, with a view to keeping this country in its zone of influence. For Vladimir Putin, Ukraine is part of the greater Russia, the two entities have a common destiny under the responsibility of Moscow. The military action, which did not deserve the name of war, had to be conducted quickly to remedy this accident of history and the domination of the United States and its satellite the European Union. The military fighting has shown the resistance of the Ukrainian people, but also the will of Russia to fulfill its objectives at any cost despite the expansion of economic, social and military sanctions decided against it, mainly by the Western powers. The conflict affects the interests of all the countries of the world, with sanctions on the Russian monetary and financial system, on the available international infrastructures, on the interrupted exercise for Russia of the "Most Favored Nation clause", on the Russian sales of gas and oil to European countries, on the exports of cereals which will be reduced both by the acts of war which limit the production and the maritime blockade in front of Odessa which prevents their routing. In the longer term, economic globalization and the monetary and financial system dominated by the United States could be seriously challenged.
    Abstract: Menacée par l'élargissemnt de l'OTAN et par les adhésions d'anciens pays amis à l'Union européenne, la Russie s'est engagée dans une « opération spéciale » contre l'Ukraine, en vue de conserver ce pays dans sa zone d'influence. Pour Vladimir Poutine, l'Ukraine fait partie de la grande Russie, les deux entités ont un destin commun sous la responsabilité de Moscou. L'action militaire, qui ne méritait pas le nom de guerre, devait être rapidement conduite pour remédier à cet accident de l'histoire et à la domination des Etats-Unis et de son satellite l'Union européenne. Les combats militaires ont mis en évidence la résistance du peuple ukrainien, mais aussi la volonté de la Russie de remplir coûte que coüte ses objectifs malgré l'élargissement des sanctions économiques, sociales et militaires décidées à son encontre, principalement par les puissances occidentales. Le conflit touche les intérêts de l'ensemble des pays du monde, avec les sanctions exercées sur le système monétaire et financier russe, sur les infrastructures internationales disponibles, sur l'exercice interrompue pour la Russie de la « clause de la Nation la plus favorisée », sur les ventes russes de gaz et de pétrole à destination des pays européens, sur les exportations de céréales qui seront réduites à la fois par les actes de guerre qui limitent la production et le blocus maritime devant Odessa qui empêche leur acheminement. A plus long terme, la globalisation économique et le système monétaire et financier dominé par les Etats-Unis pourraient être remis sérieusement en cause.
    Keywords: Russia,Ukraine,War,economic war,economic sanctions,international monetary and financial system,famine,NATO,Russie,Guerre,guerre économique,sanctions économiques,système international monétaire et financier,OTAN
    Date: 2022–09–15
  43. By: Harkaran Kava (Loughborough University); Konstantina Spanaki (Audencia Business School); Thanos Papadopoulos (Kent Business School, University of Kent); Stella Despoudi (Aston Business School - Aston University [Birmingham]); Oscar Rodriguez-Espindola (Aston Business School - Aston University [Birmingham]); Masoud Fakhimi (Surrey Business School [Guildford] - UNIS - University of Surrey)
    Abstract: We introduce the BDA dynamics and explore the associated applications in renewable energy sector with a focus on data-driven innovation. Our study draws on the exponential growth of renewable energy initiatives over the last decades and on the paucity of literature to illustrate the use of BDA in the energy industry. We conduct a qualitative field study in the UK with stakeholder interviews and analyse our results using thematic analysis. Our findings indicate that no matter if the importance of the energy sector for 'people's well-being, industrial competitiveness, and societal advancement, old fashioned approaches to analytics for organisational processes are currently applied widely within the energy sector. These are triggered by resistance to change and insufficient organisational knowledge about BDA, hindering innovation opportunities. Furthermore, for energy organisations to integrate BDA approaches, they need to deal with challenges such as training employees on BDA and the associated costs. Overall, our study provides insights from practitioners about adopting BDA innovations in the renewable energy sector to inform decision-makers and provide recommendations for future research.
    Keywords: Big Data Analytics,energy sector,renewable energy,diffusion of innovations,field study
    Date: 2021–09–16
  44. By: Luo, Zunian
    Abstract: Electric vehicle adoption is considered by policymakers to be a promising pathway for addressing climate change. However, the market for charging stations suffers from a market failure: a lack of EV sales disincentivizes charging station production, which in turn inhibits mass EV adoption. Charging station subsidies are discussed as policy levers that can stimulate charging station supply to correct this market failure. Nonetheless, there is limited research examining the extent such subsidies are successful. Using annual data on electric vehicle sales, charging station counts, and subsidy amounts from 57 California counties and a staggered difference-in-differences methodology, I find that charging station subsidies are highly effective: a 1% increase in subsidies expands the supply of stations by 2.5%. This finding suggests that governmental intervention can help correct the market failure in the charging station market.
    Keywords: Electric Vehicles; Charging Stations; Climate Change; Difference in Differences
    JEL: L62 Q48 Q58
    Date: 2022–10–20
  45. By: Ander Iraizoz (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); José M Labeaga (UNED - Universidad Estatal a Distancia)
    Abstract: In this paper, we study the effect of spatial tax differentials on fuel tax pass-though and sales responses. We use two-way fixed effects methods to exploit regional variation in diesel excise taxes in Spain. Using a dataset containing daily diesel prices for the universe of petrol stations in Spain, we find that diesel tax pass-through is asymmetric depending on the sign of tax differentials with bordering regions. Petrol stations bordering with lower tax regions pass-through only 56% of fuel taxes, petrol stations bordering with higher tax regions pass-through 120% of fuel taxes. We provide evidence to attribute the asymmetric spatial incidence of fuel taxes to the market power given by the competitive tax advantage relative to competitors. Furthermore, we use diesel sales data aggregated at the province level and we find significant spatial tax avoidance responses to regional fuel tax differentials.
    Keywords: Automotive Fuel,Tax Incidence,Spatial Avoidance
    Date: 2022–09
  46. By: Semrau, Finn Ole
    Abstract: Industries that occupy upstream positions in global value chains (GVCs) - being positioned closer to the raw product - produce proportionately more CO2-intensive. However, firms are heterogeneous, even in narrowly defined industries. In this paper, I empirically investigate whether the relationship between upstreamness and CO2 emissions, measured in absolute and relative terms, holds within industries at the firm level. Using granular data of Indian manufacturing firms and controlling for established drivers of clean production, I reveal that firms producing products closer to final consumption produce less CO2-intensive. I corroborate the finding by using a 2-SLS instrumental variable approach. Interestingly, I find that exposure to importing countries with stringent environmental policies attenuates the link between upstreamness and dirty production. The latter finding suggests the imperative of technology upgrading for dirty upstream producers aiming to remain competitive in international markets.
    Keywords: Environment and trade,environment and development,CO2 intensity,global value chains,sustainable development
    JEL: F14 F18 O13 Q56
    Date: 2022
  47. By: Yamada,Takahiro; Yamada,Hiroyuki; Mani,Muthukumara S.
    Abstract: This study investigates the causal effects of long-term particulate matter 2.5 exposure on COVID-19 deaths, fatality rates, and cases in India by using an instrumental variables approach based on thermal inversion episodes. The estimation results indicate that a 1 percent increase in long-term exposure to particulate matter 2.5 leads to an increase in COVID-19 deaths by 5.7 percentage points and an increase in the COVID-19 fatality rate by 0.027 percentage point, but this exposure is not necessarily correlated with COVID-19 cases. People with underlying health conditions such as respiratory illness caused by exposure to air pollution might have a higher risk of death following SARS-CoV-2 infection. This finding might also apply to other countries where high levels of air pollution are a critical issue for development and public health.
    Keywords: Brown Issues and Health,Pollution Management&Control,Air Quality&Clean Air,Health Care Services Industry,Law and Justice Institutions
    Date: 2021–02–10
  48. By: Cook, Nikolai M.
    Abstract: This analysis is an independent replication of Heft-Neal et al. (2020).1 The original authors (HBBVB) provide evidence that particulate matter air pollution increases infant mortality in 30 African nations between 2000 and 2015. They provide three effect estimates. Using ordinary least squares, a 10 μg/m3 increase in PM2.5 exposure results in an estimated 8.6% increase in infant mortality. Using dust in the Bod'el'e depression as an instrumental variable, the same exposure increases infant mortality by 23.6%. Using rainfall in the Bod'el'e depression, the same exposure increases infant mortality by 24.3%. Using similar data and independently developed procedures I find corresponding estimates of 3.4%, 31.0%, and 29.7%.
    Date: 2022
  49. By: Claire-Marie Bergaentzl\'e (DTU Management, Technical University of Denmark, 2800 Kgs Lyngby, Denmark); Philipp Andreas Gunkel (DTU Management, Technical University of Denmark, 2800 Kgs Lyngby, Denmark); Mohammad Ansarin (Rotterdam School of Management, Erasmus University, 3062PA Rotterdam, Netherlands); Yashar Ghiassi-Farrokhfal (Rotterdam School of Management, Erasmus University, 3062PA Rotterdam, Netherlands); Henrik Klinge Jacobsen (DTU Management, Technical University of Denmark, 2800 Kgs Lyngby, Denmark)
    Abstract: Developing new electricity grid tariffs in the context of household electrification raises old questions about who pays for what and to what extent. When electric vehicles (EVs) and heat pumps (HPs) are owned primarily by households with higher financial status than others, new tariff designs may clash with the economic argument for efficiency and the political arguments for fairness. This article combines tariff design and redistributive mechanisms to strike a balance between time-differentiated signals, revenue stability for the utility, limited grid costs for vulnerable households, and promoting electrification. We simulate the impacts of this combination on 1.4 million Danish households (about 50% of the country's population) and quantify the cross-subsidization effects between groups. With its unique level of detail, this study stresses the spillover effects of tariffs. We show that a subscription-heavy tariff associated with a ToU rate and a low redistribution factor tackles all the above goals.
    Date: 2022–10
  50. By: Tenreyro, Silvana; De Silva, Tiloka
    Abstract: We study countries’ compliance with the targets pledged in international climate-change agreements and the impact of those agreements and specific climate laws and policies on greenhouse-gas emissions and economic outcomes. To do so, we compile and codify data on international agreements and measures enacted at the national and sub-national levels. We find that compliance with targets has been mixed. Still, countries that signed the Kyoto Protocol or the Copenhagen Accord experienced significant reductions in emissions when compared to non-signatories. Having quantifiable targets led to further reductions. Effects from the Paris Agreement are not yet evident in the data. Carbon taxes and the introduction of emission-trading schemes led to material reductions in emissions. Other climate laws or policies do not appear to have had, individually, a material effect on emissions. The impact on GDP growth or inflation from most measures was largely insignificant. Overall, much more ambitious targets would be needed to offset the impact of economic and population growth on emissions and contain the expansion of the stock of gases.
    Keywords: emissions; climate change; climate agreements; carbon taxes; emission-trading schemes; climate-change mitigation; OUP deal
    JEL: Q54 O54
    Date: 2021–12–30
  51. By: Carattini, Stefano; Figge, Béla; Gordan, Alexander; Löschel, Andreas
    Abstract: Conflicting societal goals can lead to national and local policies that are at odds with each other. National policies promoting the adoption of solar photovoltaics may be counteracted by local policies defining the aesthetics of the built environment. As solar photovoltaic energy approaches grid parity globally, non-pecuniary barriers to the adoption of this important renewable energy source become increasingly salient. Using a unique survey of municipalities regarding such building codes and administrative data on all solar installations in Germany, a leader in solar adoption, we document the impact that municipalities amending their building codes to restrict solar installations, often with an eye toward preserving the historical nature of the town, has on solar adoption. We find that municipalities that implement solar policies have 10.4 percent less solar photovoltaic capacity than municipalities in the control group. We confirm our results when applying spatial techniques and analyzing the impact of such policies on regulated areas within municipalities.
    Keywords: building codes; solar photovoltaics; policy evaluation; NIMBY
    JEL: D62 H77 Q48 Q58 R52
    Date: 2022–10–10
  52. By: Zachariadis,Theodoros; Giannakis,,Elias; Taliotis,Constantinos; Karmellos,Marios; Fylaktos,Nestor; Howells,Mark Idwal; Blyth,William James; Hallegatte,Stephane
    Abstract: As humanity’s current production and consumption patterns exceed planetary boundaries, many opinion leaders have stressed the need to adopt green economic stimulus policies in the aftermath of the COVID-19 pandemic, in line with the United Nations Sustainable Development Goals and the Paris Agreement on Climate Change. This paper provides an integrated framework to design an economic recovery strategy aligned with sustainability objectives through a multi-criterion, multi-stakeholder lens. The aim is to enable decisions by policy makers with the aid of transparent workflows that include expert evidence that is based on quantitative open-source modeling, and qualitative input by diverse social actors in a participatory approach. The paper employs an energy systems model and an economic input-output model to provide quantitative evidence and design a multi-criteria decision process that engages stakeholders from government, enterprises, and civil society. As a case study, the paper studies 13 green recovery measures that are relevant for Cyprus and assesses their appropriateness for criteria related to environmental sustainability, socioeconomic and job impact, and climate resilience. The results highlight trade-offs between immediate and long-run effects, between economic and environmental objectives, and between expert evidence and societal priorities. Importantly, the paper finds that a “return-to-normal†economic stimulus is not only environmentally unsustainable, but also economically inferior to most green recovery schemes.
    Keywords: Energy and Environment,Energy Demand,Energy and Mining,Transport Services,Financial Sector Policy
    Date: 2021–01–28
  53. By: Grieder, Manuel; Baerenbold, Rebekka; Schmitz, Jan; Schubert, Renate
    JEL: C91 D01 D04 D62 D91 H23
    Date: 2022

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