nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒11‒21
57 papers chosen by
Roger Fouquet
London School of Economics

  1. China’s Carbon Market: Development, Evaluation, Coordination of Local and National Carbon Markets and Common Prosperity By ZhongXiang Zhang
  2. Solar irrigation in Nepal: a situation analysis report By Shrestha, Shisher; Uprety, Labisha
  3. Solar irrigation in India: a situation analysis report By Yashodha, Yashodha; Sanjay, Aditi; Mukherji, Aditi
  4. Solar irrigation in Bangladesh: a situation analysis report By Mitra, Archisman; Alam, Mohammad Faiz; Yashodha, Yashodha
  5. Green hydrogen opportunities for emerging and developing economies: Identifying success factors for market development and building enabling conditions By Joseph Cordonnier; Deger Saygin
  6. Supporting Carbon Tax Implementation in Developing Countries through Results-Based Payments for Emissions Reductions By Strand,Jon
  7. What drives most jumps in global crude oil prices? Fundamental shortage conditions, Cartel, geopolitics or the behavior of market financial participants By Refk Selmi; Shawkat Hammoudeh; Mark Wohar
  8. Accelerating rural energy access for agricultural transformation: contribution of the CGIAR Research Program on Water, Land and Ecosystems to transforming food, land and water systems in a climate crisis By Magalhaes, M.; Ringler, C.; Verma, Shilp; Schmitter, Petra
  9. Credit Default Swaps and Corporate Carbon Emissions in Japan By OKIMOTO Tatsuyoshi; TAKAOKA Sumiko
  10. Who’s fit for the low-carbon transition? Emerging skills and wage gaps in job and data By Aurélien Saussay; Misato Sato; Francesco Vona; Layla O’Kane
  11. Global Perspective on Coal Jobs and Managing Labor Transitions out of Coal Report and Executive Summary By Ruppert Bulmer, Elizabeth N.; Pela, Kevwe Sylvester; Eberhard-Ruiz, Andreas; Montoya Villavicencio, Jimena Jesus
  12. Moving from Linear to Conic Markets for Electricity By Anubhav Ratha; Pierre Pinson; Hélène Le Cadre; Ana Virag; Jalal Kazempour
  13. Energy footprints and the international trade network: A new dataset. Is the European Union doing it better? By Fernández-Amador, Octavio; Francois, Joseph; Oberdabernig, Doris; Tomberger, Patrick
  14. Job Displacement Costs of Phasing Out Coal By Rud, Juan Pablo; Simmons, Michael; Toews, Gerhard; Aragon, Fernando
  15. Releasing the killer from the kitchen? Ventilation and air pollution from biomass cooking By Lenz, Luciane; Bensch, Gunther; Chartier, Ryan; Kane, Moustapha; Peters, Jörg; Jeuland, Marc
  16. Inter-regional System Of Analysis For East Asia: A Manual By Yuventus Effendi; Budy Resosudarmo
  17. On Home Energy Reports and Boomerangs: Evidence from Austria By Kaestner, Kathrin; Vance, Colin
  18. Emission effects of Germany's vehicle taxation: Recent empirical evidence By Flintz, Joschka; Frondel, Manuel; Horvath, Marco; Vance, Colin
  19. Inefficient Markets for Energy Efficiency - Empirical Evidence from the German Rental Housing Market By Taruttis, Lisa; Weber, Christoph
  20. The climate actions and policies measurement framework: A structured and harmonised climate policy database to monitor countries' mitigation action By Daniel Nachtigall; Luisa Lutz; Miguel Cárdenas Rodríguez; Ivan Haščič; Rodrigo Pizarro
  21. Rural Electric Vehicle Carsharing is Improving Household Mobility and Reducing Reliance on Personal Vehicles By Rodier, Caroline PhD; Harold, Brian
  22. Sector Coupling and Negative Leakage – Unilateral Climate Policies in the Presence of an ETS By Helm, Carsten; Böhringer, Christoph
  23. The impact of air pollution on labour productivity in France By Clara Kögel
  24. Healty Climate, Healthy Bodies -- Optimal Fuel Taxation and Physical Activity By van den Bijgaart, Inge; Klenert, David; Mattauch, Linus; Sulikova, Simona
  25. Measuring the Carbon Content of Wealth Evidence from France and Germany By Yannic Rehm; Lucas Chancel
  26. Cap or No Cap? What Can Governments Do to Promote EV Sales? By Luo, Zunian
  27. Forecasting Oil Prices: Can Large BVARs Help? By Bao H. Nguyen; Bo Zhang
  28. Curbing Price Fluctuations in Cap-and-Trade Auctions By Thomas D. Jeitschko; Pallavi Pal
  29. Climate, Technology, Family Size; on the Crossroad between Two Ultimate Externalities By Gerlagh, Reyer
  30. Innovation Begets Innovation and Concentration: the Case of Upstream Oil & Gas in the North Sea By Michele Fioretti; Alessandro Iaria; Aljoscha Janssen; Robert K Perrons; Clément Mazet-Sonilhac
  31. The Political Consequences of Green Policies: Evidence from Italy By Italo Colantone; Livio Di Donaldo; Yotam Margalit; Marco Percoco
  32. Formation of Climate Coalitions and Preferential Free Trade - The Case for Participation Linkage By Thomas Kuhn; Radomir Pestow; Anja Zenker
  33. A nation-wide experiment: fuel tax cuts and almost free public transport for three months in Germany -- Report 4 Third wave results By Allister Loder; Fabienne Cantner; Andrea Cadavid; Markus B. Siewert; Stefan Wurster; Sebastian Goerg; Klaus Bogenberger
  34. The Drivers of Firms' Compliance to Environmental Regulations : The Case of India By Franco Bedoya,Sebastian; Mani,Muthukumara S.
  35. Digging into the Technological Dimension of Environmental Productivity By Filippo Belloc; Edilio Valentini
  37. The EU Proposal for a Carbon Border Adjustment Mechanism (CBAM): An Analysis under WTO and Climate Change Law By Espa, Ilaria; Francois, Joseph
  38. Green Technological Diversification and Local Recombinant Capabilities: The Role of Technological Novelty and Academic Inventors. By Author-Name: Orsatti, Gianluca; Quatraro,Francesco; Scandura, Alessandra
  39. Beyond capacity: contractual form in electricity reliability obligations By Han Shu; Jacob Mays
  40. Climate uncertainty, financial frictions and constrained efficient carbon taxation By Felix K\"ubler
  41. Exclusive Linear Modeling Approach to the Natural Resource Curse in the Azerbaijani Economy: Examples of Stepwise Regression By Niftiyev, Ibrahim
  42. The color of corporate loan securitization By Müller, Isabella; Nguyen, Huyen; Trang Nguyen
  43. México | ¿El confinamiento por COVID-19 redujo la contaminación del aire? By Luis Antonio Espinosa; Juan José Li Ng
  44. Greening the Philippine Employment Projections Model: New Estimates and Policy Options By Orbeta, Aniceto Jr. C.; Llanto, Gilberto M.; Abrigo, Michael Ralph M.; Ortiz, Danica Aisa P.
  45. BIM can help decarbonize the construction sector: life cycle evidence from Pavement Management Systems By Anne de Bortoli; Yacine Baouch; Mustapha Masdan
  46. Reset and Rebuild for a Better Philippines in the Post-pandemic World By Francisco, Kris A.; Navarro, Adoracion M.; Debuque-Gonzales, Margarita
  47. Sustainable expansion of groundwater-based solar water pumping for smallholder farmers in Sub-Saharan Africa By Pavelic, Paul; Magombeyi, Manuel; Schmitter, Petra; Jacobs-Mata, Inga
  48. Opciones de la agricultura y los cambios del uso del suelo para alcanzar cero emisiones netas en América Latina y el Caribe By Patrice Dumas; Stefan Wirsenius; Timothy Searchinger; Adrien Vogt-Schilb; Nadine Andrieu
  49. Engaging with partners in the Global South in uncertain times By Klingebiel, Stephan
  50. Understanding how economic conditions and natural disasters shape environmental attitudes: A cross-country comparison to inform policy making By Kentaro Asai; Francesca Borgonovi; Sarah Wildi
  51. From LOS to VMT: Repurposing Impact Fee Programs Since Adoption of SB 743 By Barbour, Elisa
  52. Sobriété environnementale et évaluation du risque écologique soutenable By Emmanuel Okamba
  53. Armenia: Technical Assistance Report-Quantifying Fiscal Risks from Climate Change By International Monetary Fund
  54. Responsible Investment and Responsible Consumption By Hakenes, Hendrik; Schliephake, Eva
  55. Appréhender les trajectoires de développement à l’aune de la soutenabilité forte By Antoine GODIN; Anda DAVID; Oskar LECUYER; Stéphanie LEYRONAS
  56. Sustainable Development Goals (SDG) 16: A governance compass towards just transition? By Balasubramanian, Pooja; Breuer, Anita; Leininger, Julia; Cameron, Allen; Kercher, Julia
  57. The development of digital sustainability technologies by top R&D investors By JINDRA Björn; LEUSIN Matheus

  1. By: ZhongXiang Zhang (Ma Yinchu School of Economics, Tianjin University and China Academy of Energy, Environmental and Industrial Economics)
    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: Carbon market, Carbon price, Electricity market, Allowance allocation, Common prosperity
    JEL: Q48 Q53 Q55 Q58 O13 P28 R11 H23
    Date: 2022–10
  2. By: Shrestha, Shisher (International Water Management Institute); Uprety, Labisha (International Water Management Institute)
    Keywords: Solar energy; Groundwater irrigation; Pumps; Renewable energy; Electricity; Policies; Business models; Subsidies; Governance; Sustainability; Farmers; Gender; Women; Inclusion
    Date: 2021
  3. By: Yashodha, Yashodha (International Water Management Institute); Sanjay, Aditi (International Water Management Institute); Mukherji, Aditi (International Water Management Institute)
    Keywords: Solar energy; Groundwater irrigation; Business models; Energy generation; Sustainability; Tube wells; Pumps; Greenhouse gas emissions; Seasonal cropping; Farmers
    Date: 2021
  4. By: Mitra, Archisman (International Water Management Institute); Alam, Mohammad Faiz (International Water Management Institute); Yashodha, Yashodha (International Water Management Institute)
    Keywords: Solar energy; Groundwater irrigation; Business models; Energy generation; Sustainability; Tube wells; Pumps; Greenhouse gas emissions; Seasonal cropping; Farmers
    Date: 2021
  5. By: Joseph Cordonnier (OECD); Deger Saygin (OECD)
    Abstract: Hydrogen is a cross-cutting energy vector that can help to decarbonise various end-use sectors. At least two-thirds of the global hydrogen production is projected to be green hydrogen by 2050, supporting the transition to a net-zero emissions global energy system. This paper presents a value chain approach to identify priority areas for developing national hydrogen strategies, focussing on emerging and developing economies. Further, the analysis highlights success factors for green hydrogen projects, based on eight case studies covering applications in industrial, transport and power generation sectors. The paper summarises the enabling conditions and financing solutions that can spur the green hydrogen market creation and growth.
    Keywords: green hydrogen case studies, hydrogen roadmap, hydrogen value chain, industry decarbonisation, levelised cost of hydrogen
    JEL: L20 O14 O25 Q42 Q48
    Date: 2022–11–09
  6. By: Strand,Jon
    Abstract: This paper discusses compensation mechanisms to strengthen incentives for lower-income countries to adopt carbon taxes through donor-funded support programs. The paper considers two cases: the provision of climate finance when the host country uses the additional mitigation to meet its own greenhouse gas mitigation target (the "incremental cost price"); and a transaction in an international carbon market with the mitigation credit created by host country mitigation transferred outside the country (the “opportunity cost price†). Both offset the host country's deadweight loss from imposing a carbon tax, which is lower when the host country enjoys large co-benefits from mitigation. Formulas are derived for the incremental cost price and the opportunity cost price. The opportunity cost price is always larger than the incremental cost price, as the host country under the opportunity cost price must use additional, more expensive mitigation policies to reach its mitigation target. The paper discusses additional costs and barriers that deter hosts from adopting carbon taxes. These arguments can help to explain why few low-income countries have so far adopted carbon taxes, and why the necessary compensation for tax adoption may exceed theoretical assessments.
    Keywords: Climate Change Mitigation and Green House Gases,Taxation&Subsidies,Economic Adjustment and Lending,Public Sector Economics,Macro-Fiscal Policy,Public Finance Decentralization and Poverty Reduction,Energy and Environment,Energy Demand,Energy and Mining
    Date: 2020–10–19
  7. By: Refk Selmi (ESC PAU - Ecole Supérieure de Commerce, Pau Business School); Shawkat Hammoudeh (Lebow College of Business, Drexel University - CERAG - Centre d'études et de recherches appliquées à la gestion - UPMF - Université Pierre Mendès France - Grenoble 2 - CNRS - Centre National de la Recherche Scientifique); Mark Wohar (University of Nebraska Omaha - University of Nebraska System)
    Abstract: Several studies have emphasized the potential role of oil price volatility as a leading macroeconomic indicator, since it provides prominent information to energy traders, market participants and policymakers. In an effort to shed fresh insights on the underlying factors of wide oil price changes, the objective of this paper is twofold. First to capture large oil price changes caused by the arrival of surprising news (i.e., jumps); second to distinguish between short-, medium-and long-term determinants of jumps in oil prices due to changes in oil supply and demand fundamentals, factors associated with the market power of oil producers, speculation, geopolitical risks and OPEC's spare capacity. Using an Empirical Mode Decomposition (EMD), we find that oil supply and demand forces are the most prevalent in determining oil price changes in the long run, which is quite predictable. OPEC gains increasing importance in the medium-and long-terms. Our method also allows us to show that OPEC's use of spare capacity moderately reduces oil price volatility in the short-term, thus suggesting a limited stabilizing influence on the oil market. We consider broader policy implications for our results.
    Keywords: Oil price jumps,oil price determinants,Empirical Mode Decomposition,Empirical Mode Decomposition JEL classification: G15,C11,C58,Q30,Q31
    Date: 2022–08–01
  8. By: Magalhaes, M.; Ringler, C.; Verma, Shilp (International Water Management Institute); Schmitter, Petra (International Water Management Institute)
    Keywords: Agriculture; Transformation; Energy policies; Rural areas; CGIAR; Research programmes; Agrifood systems; Land use; Water systems; Climate change; Energy consumption; Solar energy; Irrigation systems; Groundwater; Electricity; Pumps; Technology; Investment; Innovation; Pilot projects; Environmental sustainability; Emission reduction; Resource recovery; Reuse; Income generation; Business models; Capacity development; Smallholders; Farmers; Women; Food security
    Date: 2021
  9. By: OKIMOTO Tatsuyoshi; TAKAOKA Sumiko
    Abstract: We examine the relationship between carbon emissions and the market perception of firms' default risk measured by corporate credit default swap (CDS) spreads in Japan. While corporate revenue size is the most significant factor of carbon emissions, pressure from investors has a significant decreasing effect on carbon emissions, which is greater for investment-grade companies. We find that carbon emissions have time-varying effects on corporate CDS spreads, which supports the “investor awareness†hypothesis across sectors and credit quality. The sectoral impacts indicate that carbon emissions are priced prominently in the CDS spreads of firms in sectors where the transition to carbon-free energy sources appears relatively less complicated and less expensive. Finally, we report the impacts of carbon emissions on the CDS spread curve, where they are priced in both short- and long-term CDS spreads, and high carbon emissions steepen the CDS spread curve.
    Date: 2022–10
  10. By: Aurélien Saussay (Grantham Research Institute, London School of Economics and Political Science and OFCE, Sciences Po); Misato Sato (Grantham Research Institute, London School of Economics and Political Science); Francesco Vona (University of Milan, Fondazione Eni Enrico Mattei and OFCE, Sciences Po); Layla O’Kane (Lightcast)
    Abstract: As governments worldwide increase their commitments to tackling climate change, the number of low-carbon jobs are expected to grow rapidly. Here we provide evidence on the characteristics of low-carbon jobs in the US using comprehensive online job postings data between 2010-2019. By accurately identifying low-carbon jobs and comparing them to similar jobs in the same occupational group, we show that low-carbon jobs differ from high-carbon or generic jobs in a number of important ways. Low-carbon jobs have higher skill requirements across a broad range of skills, especially technical ones. However, the wage premium for low-carbon jobs has declined over time and the geographic overlap between low- and high-carbon jobs is limited. Overall, our findings suggest the low-carbon transition entails potentially high labour reallocation costs associated with re-skilling and earning losses, indicating public investments in skills is needed to deliver a smooth and rapid transition.
    Keywords: Low-carbon jobs, fossil-fuel jobs, skill gaps, job vacancy data, green wage premium, distributional effects, low-carbon transition
    JEL: J23 J24 J31 Q52 Q54
    Date: 2022–10
  11. By: Ruppert Bulmer, Elizabeth N.; Pela, Kevwe Sylvester; Eberhard-Ruiz, Andreas; Montoya Villavicencio, Jimena Jesus
    Abstract: The widely shared objective of transition to cleaner energy and reduced dependence on coal presents tremendous challenges, not only to coal sector producers and workers, but because of the broader implications for other sectors in coal-producing nations. A large proportion of energy infrastructure is built around coal-fired power plants (even in non-coal producing countries), economic production structures are energy-intensive, and coal value chains are long. In regions where coal mining takes place, the effects of transition cut very deeply, especially in small, remote mining communities where the local economy depends on coal. The transition can create multiple disruptions: to jobs - both direct and indirect, to household incomes, to local economies heavily tied into the coal supply chain, to community well-being and social capital, and to local and regional government capacity and fiscal solvency. This issues paper analyzes the status of coal phase-out around the world, the magnitude and character of coal mining jobs and their spillovers in local economies, and the challenges associated with future labor transition. This report is part of a broader multi-sector effort by the World Bank to support coal regions confronting the realities of decarbonization and help lay the groundwork for achieving a just transition for all.
    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: 2020–12–31
  12. By: Anubhav Ratha (DTU Electrical Engineering [Lyngby] - DTU - Danmarks Tekniske Universitet = Technical University of Denmark); Pierre Pinson (Imperial College London); Hélène Le Cadre (Inria Lille - Nord Europe - Inria - Institut National de Recherche en Informatique et en Automatique); Ana Virag (VITO - Flemish Institute for Technological Research); Jalal Kazempour (DTU Electrical Engineering [Lyngby] - DTU - Danmarks Tekniske Universitet = Technical University of Denmark)
    Abstract: We propose a new forward electricity market framework that admits heterogeneous market participants with second-order cone strategy sets, who accurately express the nonlinearities in their costs and constraints through conic bids, and a network operator facing conic operational constraints. In contrast to the prevalent linear-programming-based electricity markets, we highlight how the inclusion of second-order cone constraints improves uncertainty-, asset-, and network-awareness of the market, which is key to the successful transition towards an electricity system based on weather-dependent renewable energy sources. We analyze our general market-clearing proposal using conic duality theory to derive efficient spatially-differentiated prices for the multiple commodities, comprised of energy and flexibility services. Under the assumption of perfect competition, we prove the equivalence of the centrally-solved market-clearing optimization problem to a competitive spatial price equilibrium involving a set of rational and self-interested participants and a price setter. Finally, under common assumptions, we prove that moving towards conic markets does not incur the loss of desirable economic properties of markets, namely market efficiency, cost recovery, and revenue adequacy. Our numerical studies focus on the specific use case of uncertainty-aware market design and demonstrate that the proposed conic market brings advantages over existing alternatives within the linear programming market framework.
    Keywords: OR in energy,spatial equilibrium,mechanism design,electricity markets,conic economics
    Date: 2022–10–06
  13. By: Fernández-Amador, Octavio; Francois, Joseph; Oberdabernig, Doris; Tomberger, Patrick
    Abstract: Abstract Understanding the developments of energy effciency in the context of the global energy network is key to advance energy regulation and fight climate change. We develop a global panel dataset on energy usage accounts based on territorial production, final production and consumption over 1997-2014. We apply structural decomposition analysis to isolate energy efficiency changes and study the effectiveness of the European Union Energy Services Directive [2006/32/EC] on energy effciency. The effectiveness of the Directive is mixed. The different dynamics found among the European Union members result from differences in the ambition of national energy policies and from the structure of their supply chains. The observed trends towards energy efficiency gains and increases in renewable energy shares are not specific to the European Union, but are common among high income countries. Energy policies in high-income countries are less effective for energy footprints. Our findings are indicative of energy leakage. Energy regulation should account for global supply chains. Read the full Working Paper by clicking on the link below.
    Date: 2022–11–02
  14. By: Rud, Juan Pablo (Royal Holloway, University of London); Simmons, Michael (Umeå University); Toews, Gerhard (University of Orléans); Aragon, Fernando (Simon Fraser University)
    Abstract: The reduction of carbon emissions will require a rapid phasing out of coal and the displacement of millions of coal miners. How much could this energy transition cost mining workers? We use the dramatic collapse of the UK coal industry to estimate the long-term impact on displaced miners. We find evidence of substantial losses: wages fell by 40% and earnings fell by 80% to 90% one year after job loss. These losses are persistent and remain significantly depressed fifteen years later, amounting to present discounted value earnings losses of between four and six times the miners pre-displacement earnings.
    Keywords: labor displacement, energy transition, coal mines
    Date: 2022–09
  15. By: Lenz, Luciane; Bensch, Gunther; Chartier, Ryan; Kane, Moustapha; Peters, Jörg; Jeuland, Marc
    Abstract: Household air pollution from biomass cooking is the most significant environmental health risk in the Global South. Interventions to address this risk mostly promote less-polluting stoves and clean fuels, but their diffusion proves difficult. This paper assesses the potentially complementary role of ventilation in reducing household air pollution. Using state-of-the-art measurements of kitchen concentrations of particulate matter (PM2.5) and personal exposure from 419 households in rural Senegal, we show that higher ventilation is strongly related to lower kitchen concentration, though absolute pollution levels remain high. This association is robust to controlling for a comprehensive set of potential confounders. Yet, these reductions in concentration do not translate into lower pollution exposure among cooks, probably due to avoidance behaviour. Our findings indicate that ventilation interventions may reduce smoke concentration nearly as good as many real-world clean stove interventions and can hence be an important complement to existing strategies. However, a more holistic approach is needed in order to reduce personal exposure in line with international health standards.
    Keywords: Cookstoves,biomass burning,ventilation,particulate matter concentration,exposure,household air pollution
    JEL: D12 O18 Q41 Q53
    Date: 2022
  16. By: Yuventus Effendi (Indonesian Ministry of Finance, Republic of Indonesia, Jakarta, Indonesia); Budy Resosudarmo (Indonesia Project, Arndt-Corden Department of Economics, Crawford School of Public Policy, Australian National University, Canberra, Australia)
    Abstract: This paper provides detail of the inter-regional system of analysis of East Asia (IRSA-EA). IRSA-EA is a static and multi-country computable general equilibrium (CGE) model. IRSA-EA has a flexible production structure that allows substitutions among electricity and energy intermediate inputs. Hence, the model can simulate the impacts of changes in energy and electricity prices. Also, the model incorporates several recycling mechanisms to simulate the impacts of renewable electricity development and decarbonisation in the East Asia region. This paper provides a technical guide for the IRSA-EA model that will be useful to analyse the socio-economic and environmental impacts of policy instruments in the subsequent two papers.
    Keywords: Climate change, computable general equilibrium model, East Asian economy
    JEL: O21
    Date: 2022–10
  17. By: Kaestner, Kathrin; Vance, Colin
    JEL: D12 D83 Q41
    Date: 2022
  18. By: Flintz, Joschka; Frondel, Manuel; Horvath, Marco; Vance, Colin
    Abstract: In 2021, Germany adjusted its vehicle taxation scheme, resulting in a disproportionate increase in the tax burden for vehicles with high carbon emission intensity. This article presents empirical evidence on the impact of Germany's vehicle taxation and its reforms on automobile emissions. To this end, we refer to a series of recent studies by Klier and Linn (2015), Malina (2016), Alberini and Horvath (2021), and Flintz, Frondel, and Horvath (2022) on the reforms of Germany's motor vehicle taxation since 2009, when an emissions-differentiated vehicle tax scheme came into force. The empirical results unanimously indicate that Germany's vehicle taxation does not have the steering effect that is needed to substantially reduce greenhouse gas emissions.
    Keywords: Registration tax,circulation tax,greenhouse gas emissions
    JEL: D12 H23
    Date: 2022
  19. By: Taruttis, Lisa; Weber, Christoph
    JEL: C21 Q40 R21 R31
    Date: 2022
  20. By: Daniel Nachtigall; Luisa Lutz; Miguel Cárdenas Rodríguez; Ivan Haščič; Rodrigo Pizarro
    Abstract: There are major gaps in the measurement of the adoption and stringency of countries’ climate actions and policies, notably in a manner coherent across countries, time, sectors and instrument types. The climate actions and policies measurement framework (CAPMF) aims to fill this gap. It is a structured and harmonised climate mitigation policy database that informs about countries’ climate action. The CAPMF was developed under the International Programme for Action on Climate (IPAC). It comprises 128 policy variables, grouped into 56 policy instruments and other climate actions, covering the 52 countries participating in IPAC and the period 2000-2020. The CAPMF is the most comprehensive internationally harmonised climate-related policy database currently available. Results indicate that IPAC countries strengthened their climate action between 2000 and 2020 in terms of both policy adoption and policy stringency, although individual countries progressed at different paces. Policy mixes in many countries changed from cross-sectoral to a more sectoral focus and from non-market to market-based approaches. Importantly, results suggest a positive relationship between stronger climate action and greater emissions reductions but further analysis is needed to fully assess policy effectiveness.
    Keywords: , non-market-based instruments, carbon pricing, climate action, climate change, climate policy, market-based instruments
    JEL: H23 Q48 Q54 Q58
    Date: 2022–11–07
  21. By: Rodier, Caroline PhD; Harold, Brian
    Abstract: Households in marginalized areas of rural California contend with difficult transportation challenges resulting from infrequent transit service, limited access to app-based rideshare services, and higher vehicle ownership costs associated with long travel distances. In 2014, researchers at the University of California, Davis partnered with the San Joaquin Valley Metropolitan Planning Organization to engage with stakeholders to understand the challenges facing rural residents and develop solutions for improving mobility while reducing greenhouse gas emissions. One outcome of this work was the creation of an electric vehicle (EV) carsharing service known as Míocar. Míocar launched in 2019 and now has 27 vehicles located in eight affordable housing complexes in Tulare and Kern counties. Míocar provides a transportation option that helps to improve the mobility of individuals and households in marginalized communities and reduce greenhouse gas emissions by decreasing reliance on conventional personal vehicles.
    Keywords: Social and Behavioral Sciences
    Date: 2022–10–01
  22. By: Helm, Carsten; Böhringer, Christoph
    JEL: H23 D58 Q54 Q38
    Date: 2022
  23. By: Clara Kögel (OECD Directorate for Science, Technology and Innovation and Centre d'Economie de la Sorbonne - Université Paris 1 Panthéon-Sorbonne)
    Abstract: This paper investigates the effect of air pollution on labour productivity in French establishments in both manufacturing and non-financial market services sectors from 2001 to 2018. An instrumental variable approach based on planetary boundary layer height and wind speed allows identifying the causal effect of air pollution on labour productivity. The finding shows that a 10% increase in fine particulate matter leads, on average, to a 1.5% decrease in labour productivity, controlling for firm-specific characteristics and other confounding factors. The analysis also considers different dimensions of heterogeneity driving this adverse effect. The negative effect of pollution is mainly driven by service-intensive firms and sectors with a high share of highly skilled workers. This finding is in line with the expectation that air pollution affects cognitive skills, concentration, headache, and fatigue in non-routine cognitive tasks. Compared to an estimation of the marginal abatement cost of PM 2.5 reductions by the Air Quality Directive 2008/50/EC, gains only from the labour productivity channel are equivalent to one-third of the abatement cost over the implementation period. All in all, these estimates suggest that the negative impact of air pollution is much larger than previously documented in the literature
    Keywords: air pollution; labour productivity; planetary boundary layer height
    JEL: J24 O13 Q53 Q51 Q52
    Date: 2022–10
  24. By: van den Bijgaart, Inge; Klenert, David; Mattauch, Linus; Sulikova, Simona
    JEL: H23
    Date: 2022
  25. By: Yannic Rehm (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); Lucas Chancel (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, WIL - World Inequality Lab)
    Abstract: This paper estimates the distribution of annual wealth-related greenhouse gas (GHG) emissions in France and Germany, using a novel method to combine newly released air emission accounts, national accounts, and survey data on wealth. In our proposed framework, wealth holders are responsible for the emissions that occur in production processes they implicitly control. Our findings suggest that wealth-related emissions are at least as much concentrated at the very top than wealth itself, possibly even more. In addition, wealth-related emissions appear to be more even more concentrated in Germany than in France. Large emissions inequalities persist even when individuals are attributed a combination of direct and indirect GHG emissions. Wealth-related emissions of the average top 10% wealth holder exceed total emissions (including direct and indirect emissions from consumption) of the average individual in the bottom 50% in France and Germany. All emissions considered, the life of the average top 10% wealth holder appears to be 3-5 times more carbon-intensive than the average individual in the bottom 50%. Finally, we discuss the paper's findings implications for a per-ton tax on the carbon content of wealth.
    Keywords: Capital,Carbon tax,Emissions,Inequality,National accounts,Survey,Taxation,Wealth
    Date: 2022–09
  26. By: Luo, Zunian
    Abstract: This paper examines the effect of the federal EV income tax subsidy on EV sales. I find that reduction of the federal subsidy caused sales to decline by 43.2%. To arrive at this result, I employ historical time series data from the Department of Energy Alternative Fuels Data Center. Using the fact that the subsidy is available only for firms with fewer than 200,000 cumulative EV sales, I separate EV models into two groups. The treatment group consists of models receiving the full subsidy, and the control group consists of models receiving the reduced subsidy. This allows for a difference in differences (DiD) model structure. To examine the robustness of the results, I conduct regression analyses. Due to a relatively small sample size, the regression coefficients lack statistical significance. Above all, my results suggest that federal incentives designed to promote EV consumption are successful in their objectives.
    Keywords: Environmental Economics; Climate Change; Electric Vehicles; Economic Policy
    JEL: Q50
    Date: 2021–10–31
  27. By: Bao H. Nguyen; Bo Zhang
    Abstract: Large Bayesian Vector Autoregressions (BVARs) have been a successful tool in the forecasting literature and most of this work has focused on macroeconomic variables. In this paper, we examine the ability of large BVARs to forecast the real price of crude oil using a large dataset with over 100 variables. We find consistent results that the large BVARs do not beat the BVARs with small and medium sizes for short forecast horizons but offer better forecasts at long horizons. In line with the forecasting macroeconomic literature, we also find that the forecast ability of the large models further improves upon the competing standard BVARs once endowed with flexible error structures.
    Keywords: forecasting, non-Gaussian, stochastic volatility, oil prices, big data
    JEL: C11 C32 C52 Q41 Q47
    Date: 2022–10
  28. By: Thomas D. Jeitschko; Pallavi Pal
    Abstract: In recent years, a significant problem with the carbon credit market has been higher than initially predicted price volatility. It is essential to study the market in a repeated-period dynamic setting to identify the factors enabling high fluctuations in prices. In this paper, we examine the dynamic auction design and propose a method to curb price volatility through a flexible supply cap. The equilibrium analysis shows that modifying the cap on per period supply can decrease price fluctuations. Currently, the government or the auctioneer sets a per-period limit on the supply, which reduces at a fixed rate over time. However, this paper suggests that a flexible cap on the per-period supply would be a better alternative. Specifically, we show that correlating the supply rate with expected future demand results in a more stable price.
    Keywords: dynamic mechanism design, auctions, emissions permits, environmental regulation, climate change
    JEL: D43 L11 L42
    Date: 2022
  29. By: Gerlagh, Reyer (Tilburg University, Center For Economic Research)
    Keywords: Climate change; R&D-based growth; Population level; Social Cost of Carbon
    Date: 2022
  30. 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); Robert K Perrons (QUT - Queensland University of Technology [Brisbane]); Clément Mazet-Sonilhac (Centre de recherche de la Banque de France - Banque de France, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)
    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
  31. By: Italo Colantone (Bocconi University, Baffi-Carefin Research Center and CESifo); Livio Di Donaldo (Bocconi University, Dondena Research Center); Yotam Margalit (Tel Aviv University, Department of Political Science); Marco Percoco (Bocconi University, GREEN Research Center)
    Abstract: For many governments, enacting green policies is a priority, but such policies often impose on citizens substantial and uneven costs. How does the introduction of green policies a?ect voting? We study this question in the context of a major ban on polluting cars introduced in Milan, which was strongly opposed by the populist right party Lega. Using several inferential strategies, we show that owners of banned vehicles—who incurred a median loss of €3,750—were significantly more likely to vote for Lega in the subsequent elections. Our analysis indicates that this electoral change did not stem from a broader shift against environmentalism, but rather from disaffection with the policy’s uneven pocketbook implications. In line with this pattern, recipients of compensation from the local government were not more likely to switch to Lega. The findings highlight the central importance of distributive consequences in shaping the political ramifications of green policies.
    Keywords: environmental politics, green policies, distributional consequences.
    JEL: P10 D70 Q50
    Date: 2022–10
  32. By: Thomas Kuhn (Faculty of Economics and Business Administration, Chemnitz University of Technology); Radomir Pestow; Anja Zenker
    Abstract: We study the endogenous formation of climate coalitions linked to a preferential free trade arrangement. In a multi-stage strategic trade and participation game, coalition and fringe countries dispose of a discriminatory tariff on dirty imports as well as emission permits imposed on domestic producers and traded on a common permit market inside the coalition, or respectively local markets outside. The participation game is solved by Monte-Carlo simulation, while the general equilibrium and the policy game are solved analytically. We find that preferential free trade can create effective climate coalitions in terms of depth and breadth.
    Keywords: Climate Change, International Environmental Agreements, Preferential Free Trade, Issue Linkage, Emission Permits
    JEL: Q54 Q56 F18 F15 Q58
    Date: 2022–11
  33. By: Allister Loder; Fabienne Cantner; Andrea Cadavid; Markus B. Siewert; Stefan Wurster; Sebastian Goerg; Klaus Bogenberger
    Abstract: In spring 2022, the German federal government agreed on a set of measures that aimed at reducing households' financial burden resulting from a recent price increase, especially in energy and mobility. These measures included among others, a nation-wide public transport ticket for 9EUR per month and a fuel tax cut that reduced fuel prices by more than 15%. In transportation policy and travel behavior research this is an almost unprecedented behavioral experiment. It allows to study not only behavioral responses in mode choice and induced demand but also to assess the effectiveness of transport policy instruments. We observe this natural experiment with a three-wave survey and an app-based travel diary on a sample 2'263 individuals; for the Munich Study, 919 participants in the survey-and-app group and 425 in the survey-only group have been successfully recruited, while 919 participants have been recruited through a professional panel provider to obtain a representative nation-wide reference group for the three-wave survey. In this fourth report we present the results of the third wave. At the end of the study, all three surveys have been completed by 1'484 participants and 642 participants completed all three surveys and used the travel diary throughout the entire study. Based on our results we conclude that when offering a 49EUR-Ticket as a successor to the 9~EUR-Ticket and a local travel pass for 30EUR/month more than 60% of all 9~EUR-Ticket owners would buy one of the two new travel passes. In other words, a substantial increase in travel pass ownership in Germany can be expected, with our modest estimate being around 20%. With the announcement of the introduction of a successor ticket in 2023 as well as with the prevailing high inflation, this study will continue into the year 2023 to monitor the impact on mobility and daily activities.
    Date: 2022–10
  34. By: Franco Bedoya,Sebastian; Mani,Muthukumara S.
    Abstract: Regulatory compliance is key in the fight against climate change and other environmental challenges. But regulatory agencies, especially in developing countries, are often hampered by their capacity to monitor and enforce standards and regulations against recalcitrant firms. There is now a big push toward self-reporting whereby the firms monitor and report on their compliance levels vis-a-vis the standards. This is seen as a way around the costs that agencies must incur if they were to scale up their inspections. In this paper, extensive firm-level data from India are used to compare the compliance level of firms when they are inspected by agencies versus the times when they self-report. Other factors that may determine regulatory compliance, such as age, size, sector, location, and so forth, are also examined. The results indicate that compliance rates are higher in the case of self-reporting than in the case of inspection, suggesting that there is a need to reform the self-report mechanism. Newer and privately owned firms are more compliant. There are also differences between complying with air and water pollution. Finally, the paper examines whether environmental monitoring through inspections leads to improvement in compliance levels, to assess the effectiveness of the regulations and inspections. The findings suggest that the increase in compliance is limited to a few industries.
    Keywords: Hydrology,Energy and Mining,Air Quality&Clean Air,Pollution Management&Control,Brown Issues and Health
    Date: 2020–11–04
  35. By: Filippo Belloc (Department of Economics and Statistics, University of Siena); Edilio Valentini (Department of Economic Studies, University of Chieti-Pescara)
    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 productivity, Emission intensity, Environmental technology, Environmental management
    JEL: D24 L60 Q54 Q55
    Date: 2022–10
  36. By: Arnita Rishanty (Bank Indonesia); Sekar Utami Setiastuti (Universitas Gadjah Mada); Nur M. Adhi Purwanto (Bank Indonesia)
    Abstract: This study aims to develop an environmental dynamic stochastic general equilibrium (E-DSGE) model with heterogeneous production sectors and evaluate possible central bank and fiscal policies towards green and sustainable production. We estimate the model for the Indonesian economy and assess the effects of macroeconomic uncertainty in terms of productivity, monetary, macroprudential, fiscal policy, and financial shocks in a setup that includes policies supporting green firms. We find that aggregate output, consumption, and investment react negatively to a positive monetary policy and government spending shock. Further, we show that emission tax may dampen the contraction of green output due to contractionary monetary and fiscal policy. The effect of green financing subsidy, however, looks trivial
    Keywords: DSGE model, Bayesian estimation, Monetary policy, Fiscal policy, Environ- mental policy
    JEL: E32 E50 Q58
    Date: 2021
  37. By: Espa, Ilaria; Francois, Joseph
    Abstract: Abstract This paper scrutinizes the European Union’s proposal for a carbon border adjustment mechanism (CBAM) under the rules of the World Trade Organization (WTO) and climate change law. It first examines the logic behind the CBAM as a border carbon adjustment measure, having due regard to the complex interplay between its stated carbon leakage rationale and its fair competition mechanics. It then dissects the main anticipated features of the CBAM and discusses how they may fare under both WTO law and climate change law. Finally, it identifies the most critical proposed design elements from a legal perspective and discusses possible alternatives or variations that could better align the CBAM with its climate change purpose. Read the full Working Paper by clicking on the link below.
    Date: 2022–11–02
  38. By: Author-Name: Orsatti, Gianluca; Quatraro,Francesco; Scandura, Alessandra (University of Turin)
    Abstract: This paper studies the entry of regions in new green technological specializations, specifically investigating the role of local recombinant capabilities and the involvement of academic inventors in patenting activities, as well as the interplay between the two. We test our hypotheses on a dataset of Italian NUTS 3 regions over the period 1998-2009. The results show that both recombinant capabilities and the presence of academic inventors are positively associated to new entries in green technological specializations, and that their interaction provides a compensatory mechanism in regions lacking adequate novel combinatorial capabilities. The findings of this work are relevant for policy makers involved in the elaboration of successful regional specialization strategies in green technological domains.
    Date: 2021–10
  39. By: Han Shu; Jacob Mays
    Abstract: Liberalized electricity markets often include resource adequacy mechanisms that require consumers to contract with generation resources well in advance of real-time operations. While administratively defined mechanisms have most commonly taken the form of a capacity obligation, efficient markets would feature a broad array of arrangements adapted to the risk profiles and appetites of market participants. This article considers how the financial hedge embedded in alternative resource adequacy contract designs can induce different responses from risk-averse investors, with consequences for the resource mix and market structure. We construct a stochastic equilibrium model describing a competitive market with incomplete risk trading and compute investment equilibria under different contracting regimes. Two policy recommendations result. First, to avoid creating inefficiency by crowding out other forms of risk sharing, system operators should allow resources contracted through other means to opt out of mandatory capacity mechanisms, with their contribution to those requirements subtracted from administratively defined demand curves. Second, if they wish to promote a single contractual form, regulators should consider replacing existing option-like capacity mechanisms with a shaped forward contract for energy. Beyond these recommendations, we discuss the tension that liberalized systems face in seeking to promote both reliability and competitive outcomes.
    Date: 2022–10
  40. By: Felix K\"ubler
    Abstract: In this paper, I consider a simple heterogeneous agents model of a production economy with uncertain climate change and examine constrained efficient carbon taxation. If there are frictionless, complete financial markets, the simple model predicts a unique Pareto-optimal level of carbon taxes and abatement. In the presence of financial frictions, however, the optimal level of abatement cannot be defined without taking a stand on how abatement costs are distributed among individuals. I propose a simple linear cost-sharing scheme that has several desirable normative properties. I use calibrated examples of economies with incomplete financial markets and/or limited market participation to demonstrate that different schemes to share abatement costs can have large effects on optimal abatement levels and that the presence of financial frictions can increase optimal abatement by a factor of three relative to the case of frictionless financial market.
    Date: 2022–10
  41. By: Niftiyev, Ibrahim
    Abstract: There is a growing body of literature on the possible presence of the Natural Resources Curse (NRC) and Dutch Disease Syndrome (DD) in the Azerbaijani economy. Because of its abundant hydrocarbon resources, Azerbaijan has pursued an oil-oriented strategy for economic growth and development. Certainly, this path has helped overcome serious economic problems such as extreme poverty, lack of capital accumulation, and technology adoption, but it is also believed that a lopsided economic structure hinders overall sustainable growth. Indeed, it has been noted that the high-value-added manufacturing sector is an engine for stable economic growth and that specialization in the primary sector (including oil and related commodities) can pose many challenges to developing countries. Over time, non-oil production has been neglected and volatile commodity prices have been allowed to determine macroeconomic stability in Azerbaijan. This has been a risky path and now requires a comprehensive investigation using widely accepted theories such as NRC and DD. This working paper presents the first results of an econometric and empirical linear analysis of the main NRC- and DD-related variables to shed light on the above phenomena. The main regression approach was a stepwise algorithm to find variable-specific functional relationships. The results are far from perfect and are experimental in nature. Although all conclusions should be drawn with caution, interested parties such as academics, professional economists, decision makers, or policy makers could benefit from the proposed conceptualization of NRC and DD in the Azerbaijani economy for their future studies.
    Keywords: Azerbaijan economy,de-industrialization,Dutch disease,natural resource curse theory,non-oil industry,oil-rich nation,regression analysis,Stepwise regression
    JEL: D04 E32 L6 O14 O52 O53
    Date: 2022
  42. By: Müller, Isabella; Nguyen, Huyen; Trang Nguyen
    Abstract: We examine whether banks manage firms' climate transition risks via corporate loan securitization. Results show that banks are more likely to securitize loans granted to firms that become more carbon-intensive. The effect is more pronounced if banks have a lower willingness to adjust loan terms. Exploiting the election of Donald Trump as an exogenous shock that lowers transition risk, we show that banks respond by a lower securitization of loans given to firms that become more carbon-intensive. This is mainly driven by banks that have no or low preferences for sustainable lending and domestic lenders.
    Keywords: climate change,risk shifting,securitization,syndicated lending,Trumpelection
    JEL: G21 G28 K11
    Date: 2022
  43. By: Luis Antonio Espinosa; Juan José Li Ng
    Abstract: This Working Paper offers rigorous statistical evidence on the influence of the reduction in mobility, derived from the COVID-19 pandemic, on the concentration levels of pollutants that affect air quality in the Metropolitan Area of the Valley of Mexico. This Working Paper offers rigorous statistical evidence on the influence of the reduction in mobility, derived from the COVID-19 pandemic, on the concentration levels of pollutants that affect air quality in the Metropolitan Area of the Valley of Mexico.
    Keywords: Pandemic, Pandemia, Mobility, Movilidad, Public policies, Políticas públicas, sustainability, sostenibilidad, Pollution, Contaminación, Mexico, México, Regional Analysis Mexico, Análisis Regional México, Sustainable Development, Desarrollo Sostenible, Working Paper, Documento de Trabajo
    JEL: Q53 C52 J6
    Date: 2022–10
  44. By: Orbeta, Aniceto Jr. C.; Llanto, Gilberto M.; Abrigo, Michael Ralph M.; Ortiz, Danica Aisa P.
    Abstract: Climate change causes a vast magnitude of impacts that cut across boundaries and spill over time. It results in various, interrelated effects on important aspects of society. Direct and indirect effects of climate change touch on, for instance, health (e.g., Watts et al. 2015) and on labor (e.g., Kjellstrom et al. 2009; International Labor Organization 2018). Unfortunately, developing countries, which are the least contributors to climate change, are more exposed to environmental risks. According to the Global Climate Risk Index 2017, the Philippines, is in the top ten countries greatly affected by extreme weather events over the last two decades. In response to these challenges and risks, the country has been actively participating in international efforts to address this global concern. Locally, various policies have been enacted to create a progressive landscape for environmental protection, and disaster risk mitigation and response. Adding to these mitigation responses is the Green Jobs Act of 2016, which aims to encourage the creation and nurturing of green jobs along with the country’s transition towards a more environmentally sustainable economy. This study supports the implementation of this policy by providing new employment demand projections in the green and conventional sectors of the economy. Specifically, the Green Philippine Employment Projections Model (Green PEPM) generates forecasts on employment demand in green industries, using various scenarios based on national development and environmental targets. The model provides a sectoral-level analysis of the potential economic and employment gains and losses coming from the growth of the green and conventional sectors. The results of the model are expected to feed into the development of the country’s Human Resource Development (HRD) Plan, which is an important feature of the 2016 Green Jobs Act. Projection results show that greening the economy creates benefits. More jobs can be created, and other existing jobs can be transformed as industries shift to environmentally friendly and sustainable technologies and products. However, depending on the country’s development targets, greening may also lead to employment contraction in certain industries. Thus, to what extent the country should go green remains an open question, which the government can explore to come up with appropriate responses. Aside from employment projections, this study provides some policy options that may address some of these threats in the labor market, and those which may support the promotion of green jobs in the country. Comments to this paper are welcome within 60 days from the date of posting. Email
    Keywords: environment; climate change; labor market;green jobs; disaster risk mitigation
    Date: 2021
  45. By: Anne de Bortoli; Yacine Baouch; Mustapha Masdan
    Abstract: Transforming the construction sector is key to reaching net-zero, and many stakeholders expect its decarbonization through digitalization. But no quantified evidence has been brought to date. We propose the first environmental quantification of the impact of Building Information Modeling (BIM) in the construction sector. Specifically, the direct and indirect greenhouse gas (GHG) emissions generated by a monofunctional BIM to plan road maintenance, a Pavement Management System (PMS), are evaluated using field data from France. The related carbon footprints are calculated following a life cycle approach, using different sources of data, including ecoinvent v3.6, and the IPCC 2013 GWP 100a characterization factors. Three design-build-maintain pavement alternatives are compared: scenario 1 relates to a massive design and surface maintenance, scenario 2 to a progressive design and pre-planned structural maintenance, and scenario 3 to a progressive design and tailored structural maintenance supported by the PMS. First, results show negligible direct emissions due to the PMS existence: 0.02% of the life cycle emissions of scenario 3. Second, complementary sensitivity analyses show that using a PMS is climate-positive over the life cycle when pavement subgrade bearing capacity improves over time, and climate-neutral otherwise. The GHG emissions savings using BIM can reach up to 30% of the life cycle emissions compared to other scenarios, and 65% when restraining the scope to maintenance and rehabilitation and excluding original pavement construction. Third, the neutral effect of BIM in case of a deterioration of the bearing capacity of the subgrade may be explained by design practices and safety margins, that could be enhanced using BIM. Fourth, the decarbonization potential of a multifunctional BIM is discussed, and research perspectives are presented.
    Date: 2022–10
  46. By: Francisco, Kris A.; Navarro, Adoracion M.; Debuque-Gonzales, Margarita
    Abstract: Despite the continuing threat of the COVID-19 virus mutating, the pandemic will eventually end given widespread vaccination and virus suppression policies. Policymakers need to think ahead, assess scenarios of possible futures, and start to reset and rebuild toward a better Philippines in the post-pandemic environment. Owing to the many societal issues that the pandemic exposed and exacerbated, thinkers were compelled to scrutinize the current flaws in the capitalist system and how these can be fixed to ensure a more sustainable existence. The Great Reset agenda by the World Economic Forum is one example. This agenda is contextualized in the Philippine situation through three major strategies, namely: making businesses more ethical through stakeholder capitalism; pursuing a green and inclusive recovery; and maintaining a robust and healthy workforce. Policy insights and recommendations for each strategy include the following: for ethical business, enjoin companies to adopt universally recognized environmental, social and governance metrics, strengthen the country’s competition framework, and create an equal environment for different businesses in similar industries; for green and inclusive recovery, make space for greening in the stimulus packages, create a pipeline of needed climate-smart infrastructure projects, identify and invest in green growth areas, support the calls for a green new deal in Southeast Asia, push Philippine concerns in the global debates on climate actions, and find alternatives in the face of carbon-related tradeoffs; and for a robust and healthy workforce, invest in reskilling and upskilling programs, revamp the social protection system, address the digital divide, and address the needs of the workers of the future. Comments to this paper are welcome within 60 days from the date of posting. Email
    Keywords: COVID-19 pandemic; capitalism reset; stakeholder capitalism; green recovery; robust workforce
    Date: 2021
  47. By: Pavelic, Paul (International Water Management Institute); Magombeyi, Manuel (International Water Management Institute); Schmitter, Petra (International Water Management Institute); Jacobs-Mata, Inga (International Water Management Institute)
    Keywords: Groundwater irrigation; Solar energy; Pumping; Smallholders; Farmer-led irrigation; Water resources; Water availability; Water use; Risk management; Markets; Sustainable Development Goals; Case studies
    Date: 2021
  48. By: Patrice Dumas (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement); Stefan Wirsenius (Chalmers University of Technology [Göteborg]); Timothy Searchinger (Princeton University); Adrien Vogt-Schilb; Nadine Andrieu (UMR Innovation - Innovation et Développement dans l'Agriculture et l'Alimentation - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, Cirad-ES - Département Environnements et Sociétés - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement)
    Abstract: Once países en América Latina y el Caribe se han comprometido a alcanzar cero emisiones netas hacia el 2050. Los cambios en el sistema alimentario son fundamentales para alcanzar dichos objetivos de neutralidad de carbono, ya que la agricultura y los cambios del uso del suelo resultantes son responsables de casi la mitad de las emisiones de gases de efecto invernadero en la región. Cuantificamos los efectos de las opciones del lado de la oferta (p. ej., mejoras en el rendimiento, silvopastoreo, agroforestería) y del lado de la demanda (p. ej., reducción de residuos y pérdidas, cambio de dietas) buscando reducir las emisiones y transformar el sistema del uso del suelo en un sumidero neto de carbono para 2050 y mejorar a la vez la nutrición de una población en crecimiento. Consideramos tanto las emisiones directas de la agricultura como la presión que ejerce la producción de alimentos sobre los cambios del uso del suelo e hicimos un seguimiento por separado de las emisiones que se producen en la región y aquellas vinculadas al comercio. Nuestros resultados confirman que el ganado desempeña un papel preponderante, ya que emite cerca del 60% de las emisiones de gases de efecto invernadero procedentes de la agricultura y de los cambios del uso del suelo. Alcanzar un sistema alimentario de emisiones netas negativas, capaz de equilibrar las emisiones del resto de la economía, requerirá mejoras ambiciosas y constantes en los rendimientos y cambios en las dietas para moderar la creciente demanda de carne de res, disminuir continuamente la proporción de suelos dedicados a la agricultura y aumentar, en cambio, aquellos dedicados a la captura de carbono y a la preservación de la biodiversidad.
    Date: 2022–10–12
  49. By: Klingebiel, Stephan
    Abstract: Having already been growing in importance for a number of years, geopolitics as it relates to the Global South has become tremendously more relevant following Russia's aggression in Ukraine in 2022. Rivalries with China are set to become even more influential in future, determining intergovernmental relations as a whole. Following the Russian invasion in February 2022, attention was initially concentrated on the stances adopted by states regarding the corresponding UN resolutions and UN debates. This focus alone illustrates the great significance attached to the positions taken by states and thus to strategic partisan thinking. At the same time, it would seem that none of the country alliances being formed to date differ fundamentally from those of recent years. Many developing countries are capitalising on their emancipated status gained in recent decades to formulate positions of their own, as well as to identify any double standards on the part of Western governments. It is important that German, European and other political players gain a better idea of the interests and perceptions of partners in the Global South. In development terms, Russia's war of aggression represents a watershed moment. It is important to note the following in this context: * At overall level, it will most likely be more difficult to achieve the 2030 Agenda, with its 17 SDGs (Sustainable Development Goals). The COVID-19 pandemic had already produced a huge socio-economic shock in the Global South, but this has now been dwarfed in many developing countries by the impact of the war. On top of this, the increasingly critical effects of climate change are proliferating all the time. * While the most severe consequences of the Ukraine war are being felt by the country itself (need for comprehensive humanitarian assistance; future need for large-scale reconstruction work) and the surrounding region (refugee care, etc.), the surge in food and energy prices resulting from the conflict is having a major impact on developing countries. * There are also other long-term challenges in regard to global sustainable development. Take innovative cooperation instruments for tackling climate change, for instance, the most prominent of which are just energy transition partnerships (JETP). The legitimacy of efforts to promote these ambitious cooperation initiatives could be undermined by European countries introducing short-term measures that involve a return to fossil fuel investment. * The growing need to overcome cross-border challenges could intersect with cutbacks being made by donor countries to their long-term development programmes. For example, some nations (particularly the UK and, in some cases, Germany) may scale back funding or increasingly charge for providing in-donor refugee costs and thus move to report a number of their activities as Official Development Assistance (ODA) (as planned by the Netherlands and Norway, for instance). * We can expect the Ukraine war to reinforce the general trend towards interest-based development policy and increase demand for approaches that deliver quick results. Nevertheless, it is not possible to derive a clear regional, thematic or country allocation pattern from this trend. * The issue of governance in developing countries is receiving greater attention in light of the risks posed by autocratic systems. The increase in cooperation with China and Russia, two nations employing their own global discourse in an attempt to promote what they refer to as 'real democracy', is especially indicative of the way China in particular is striving to influence global debate.
    Keywords: Development policy,Global South,West,Russia,Pandemic,Africa,China
    Date: 2022
  50. By: Kentaro Asai; Francesca Borgonovi; Sarah Wildi
    Abstract: Understanding adults’ attitudes towards the environment is necessary to gauge the opportunities and challenges of creating effective and politically-feasible climate policies. Using data from the Wellcome Global Monitor 2020, the European Social Survey (Round 8), World Values Survey and EM-DAT, this paper examines how adults’ environmental attitudes vary within and across countries and details how environmental attitudes are associated with adults’ engagement in pro-environmental behaviours and support for environmentally-friendly policies. The paper explores whether the extent to which individuals prioritise the environment over the state of the economy or vice versa depends on individuals’ exposure to natural disasters or negative labour market conditions. Results indicate that people’s economic vulnerability and the sectors they work in impact their attitudes towards their environment and support for public policy. Furthermore, the findings suggest that increases in unemployment and exposure to natural disasters influence the extent to which individuals prioritise the environment.
    JEL: D78 H23 P48 Q54 Q58
    Date: 2022–11–08
  51. By: Barbour, Elisa
    Abstract: This white paper assesses how cities are modifying transportation impact fees in response to Senate Bill (SB) 743, adopted in 2013 to orient environmental review of transportation impacts of development projects and plans in California to support sustainable development. SB 743 and its implementing guidelines eliminated “level of service” (LOS) standards for automobile traffic delay as an environmental impact to be addressed under the California Environmental Quality Act (CEQA), recommending instead that localities and other lead agencies responsible for CEQA review analyze, and if possible, mitigate impacts on vehicle miles traveled (VMT) instead. As cities proceed to implement SB 743, some are going further than the minimum required to analyze and mitigate for VMT at the development project level. Instead, they are also pursuing “programmatic” approaches, including altering citywide impact fees imposed on developers, to support more systematic analysis and mitigation than is possible at the project level alone. Based on public documents research and interviews with consultants and planners, this paper identifies three basic approaches that cities are taking to design impact fees in conjunction with their policy approaches for addressing SB 743: first, to design impact fee programs that fund VMT-reducing projects, but without employing a VMT “nexus” (the nexus is the basis for identifying impacts to be addressed by the program); second, to employ a VMT nexus for identifying facilities need and cost allocation; and third, to design a fee program that links to systematic CEQA-reviewed VMT analysis in the General Plan and/or other related CEQA-reviewed city wide policy documents. In this latter approach, cities may or may not design their fee program to fund VMT-reducing projects; indeed, this approach may help facilitate a more traditional, LOS-based fee program. This outcome can happen if a city analyzes VMT systematically for the General Plan, and then adopts a “statement of overriding considerations” under CEQA, which allows for development projects to “tier” off the programmatic environmental review so as to avoid the need for conducting cumulative VMT impacts analysis. This approach may facilitate more systematic integration of VMT and LOS analysis at the citywide level, but it does not support SB 743 goals for supporting VMT-reducing projects and programs. View the NCST Project Webpage
    Keywords: Law, Senate Bill 743, environmental review, CEQA, transportation impact fees, VMT reduction, sustainable transportation
    Date: 2022–11–01
  52. By: Emmanuel Okamba (Université Gustave Eiffel, IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel)
    Abstract: Dans le cadre des stratégies de développement durable des organisations, l'évaluation de la dimension éthique du développement économique, conduit à mesurer leur responsabilité environnementale à partir des « empreintes » ou des coûts liés à la pression qu'elles exercent sur l'environnement pour satisfaire l'offre et la demande des ressources rares renouvelables. Le risque écologique soutenable représente le montant de cette pression nécessaire pour créer de la valeur dans le cadre de la sobriété environnementale. Deux profils de développement s'en dégagent. Le pays à forte responsabilité écologique ayant des avoirs de réserves de ressources renouvelables produisant une faible valeur et le pays à faible responsabilité écologique vivant à crédit de ressources renouvelables produisant une forte valeur grâce aux importations des ressources. La constitution des stocks de ressources renouvelables par la photosynthèse artificielle améliore la sobriété environnementale et permet de réaliser une valeur durable. Mots de passe Sobriété environnementale, risque écologique soutenable, empreinte carbone, empreinte écologique, biocapacité.
    Date: 2022–09–29
  53. By: International Monetary Fund
    Abstract: Armenia is facing considerable fiscal risks from climate change due to increasing and highly variable temperatures. This report provides guidance on how to quantify those risks over the long term, using an empirical approach to identify the potential impact of a range of temperature scenarios on GDP and the public finances. It finds that an extreme unmitigated temperature scenario that incorporates higher year to year variability could reduce GDP by 18 percent relative to baseline, and lead to unsustainable public debt trajectory by 2070. It also finds particular exposures to climate change on the state’s balance sheet through its SOE, PPP and on lending portfolio in the energy, water and transport sectors.
    Date: 2022–10–26
  54. By: Hakenes, Hendrik; Schliephake, Eva
    JEL: M14 D62 D64 G30
    Date: 2022
  55. By: Antoine GODIN; Anda DAVID; Oskar LECUYER; Stéphanie LEYRONAS
    Abstract: Les trajectoires de développement durable sont au cœur de nombreux débats politiques : trajectoires CDN et Net Zero, transition juste, justice climatique, inclusion de la biodiversité, etc. Ces trajectoires proposent le plus souvent une approche nexus combinant les aspects climatiques, écologiques, sociaux, technologiques, économiques et politiques. Dans cet article, nous proposons une suite de trois principes directeurs, inspirés d'une approche de durabilité forte, pour construire des trajectoires durables : (i) la réfutation a priori de la substituabilité, (ii) la nécessité de construire des diagnostics et des analyses multidimensionnels mettant en évidence les synergies et les tensions entre différents indicateurs, et (iii) la reconnaissance de l'importance de construire un construit social sur le "bon état" souhaitable et sur les trajectoires pour l'atteindre. Nous montrons ensuite comment ces principes peuvent être appliqués dans différentes disciplines et aider les décideurs politiques à construire des trajectoires de développement.
    JEL: Q
    Date: 2022–10–07
  56. By: Balasubramanian, Pooja; Breuer, Anita; Leininger, Julia; Cameron, Allen; Kercher, Julia
    Abstract: The 2030 UN Agenda for Sustainable Development of 2015 prominently stresses that 'the SDGs are integrated and indivisible and balance the three dimensions of sustainable development: the economic, social and environmental' (UN [United Nations], 2015, p. 3). Behind this statement lies a reality of complex interlinkages between the Sustainable Development Goals (SDGs) and their targets, the implementation of which may produce synergies but also trade-offs. Another innovative trait of the 2030 Agenda is its strong commitment to the 'quality of governance'. While the debate about the necessary elements of governance continues, most definitions today include inclusive and participatory decision-making, accountability, and transparency as its key institutional characteristics. These characteristics have been enshrined as targets under SDG 16 on 'Peace, Justice and Strong Institutions' that are not only considered desirable outcomes but also as enablers of all other SDGs. Yet another central, transformative promise of the 2030 Agenda is to Leave No One Behind (LNOB), which requires the participation of all segments of society to contribute to its implementation. There is broad consensus in contemporary academic and policy debates that innovative governance approaches will be essential to achieve an integrated implementation of the interlinked SDGs and to fulfil the LNOB commitment. A more recent debate, which has gained traction since the 26th UN Climate Change Conference in 2021, focuses on the just transition towards climate-just, equitable and inclusive societies. At the centre of this debate lies the understanding that governments will be unable to gain public support for the prioritisation of climate actions if they do not succeed in drastically reducing poverty and inequality. It will be necessary that just climate transition be based on the principles of procedural, distributional and recognitional justice. So far, these two debates have run in parallel without cross-fertilising each other. This Policy Brief makes the case that the debate on just transition has much to gain from the academic findings generated by research on the role of governance in managing SDG interlinkages. It is based on a recent study by IDOS and the UNDP Oslo Governance Centre (UNDP OGC) that collates empirical evidence on the effects of governance qualities (SDG 16) on the reduction of poverty (SDG 1) and inequalities (SDG 10) (DIE* & UNDP OGC, 2022). The study finds that: * Improved levels of participation and inclusion are positively associated with poverty reduction; * Higher levels of access to information, transparency and accountability help to improve access to basic services and targeting of social protection policies. These findings provide policymakers with an empirical basis to argue that investments in the achievement of the governance targets of SDG 16 can act as catalysts for interventions seeking to reduce poverty and inequalities. Against this backdrop, this Policy Brief argues that the governance targets of SDG 16 are not only institutional preconditions for the reduction of poverty and inequalities but also contribute towards just transitions. More specifically: they are institutions that contribute towards the justice principles that constitute the basis of just transition and exhibit the governance qualities postulated by SDG 16. It is important to note that debates on the quality of governance and just transition do not take place in a political vacuum. In view of global trends towards auto-cratisation (V-Dem 2022), the empirical findings regarding the enabling governance effects on poverty and inequality reduction carry the important policy implication that action to support just transition will in all likelihood be more successful if accompanied by proactive measures to protect and support democratic institutions and processes.
    Keywords: 2030 Agenda,Poverty and inequality
    Date: 2022
  57. By: JINDRA Björn; LEUSIN Matheus
    Abstract: The report offers a novel approach to identify patents associated with digital sustainability technologies, which combine components of digital technologies with technologies that are relevant for climate change mitigation or adaption. We propose an identification strategy based upon six search modules, which combine specialists’ opinion, keywords and classification-based approaches. We generate two datasets. For the first, we use PATSTAT 2019a to identify 319,243 patents associated with digital sustainability technologies. We use this dataset to evaluate the accuracy of the proposed strategy in finding technologies that combine both a digital and a sustainable aspect. We find an accuracy above 95.5% for all search modules implemented in the proposed strategy. For the second dataset, we implement the proposed strategy to update the results using PATSTAT 2021b. To make the results more comparable to the EU climate neutrality report 2021 edition, we focus on the period from 2016 to 2018 and filter priority patents using the IP5 strategy. We link the retrieved patents to R&D Scoreboard companies using the JRC-OECD COR&DIP© v.3 dataset. We identify for all R&D Scoreboard companies 325,508 patents in total, from which 5,057 are digital sustainability patents.
    Keywords: sustainability, R&D
    Date: 2022–09

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