|
on Energy Economics |
| By: | Polina Knutsson; Perla Ibarlucea Flores |
| Abstract: | As foreign direct investment (FDI) can help mitigate the repercussions of climate change, understanding what factors attract energy FDI is important. A large share of energy FDI originated from outside the energy sector, and given that renewable power FDI also comes from outside the energy sector, it is worthwhile to examine if drivers behind this type of FDI differ from what encourages investment by firms operating within the energy sector. This paper demonstrates that renewable energy FDI has been increasing, while FDI in fossil fuels is potentially slowing down. Results of the empirical analysis show that both the broader investment conditions and the strength of climate policies are vital for ensuring the favourable environment for renewable energy FDI, but the extent to which these factors impact investment decisions varies depending on where the investors come from: greenfield investors from outside the energy sector seem less responsive to the climate mitigation policies of host countries, whereas their location choices are tightly linked to the broader investment conditions in the destination economies. |
| Keywords: | energy FDI, energy sector |
| Date: | 2022–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaaa:2022/02-en&r=ene |
| By: | Hoffart, Franziska |
| Abstract: | Emission-free hydrogen (H2) is crucial to decarbonize energy supply and to tackle the climate crisis. To unlock the potential of H2, pipelines infrastructures and related investments are required to enable trade. However, it is uncertain what future H2 infrastructure will be needed. The paper aims to assess three H2 infrastructures for Germany within a European context in terms of feasibility (criterion 1) and 1.5°C-alignment (criterion 2) to inform investment and political decisions. Own socio-technical scenarios are used to include findings from four disciplines for a holistic infrastructure evaluation. As results, implementation requirements are identified that determine the future robustness of different supply chains. It is assessed which feasible infrastructures are 1.5°C-aligned in terms of impact for the environment and energy transition, which goes beyond the German context. The results show, that the origin of H2 mainly determines the 1.5°C-alignment and that renewable H2 is more sustainable than fossil-based H2. Also, investments in gas pipelines for future retrofitting might delay energy transitions due to lock-ins and climate-related risks. In conclusion, a step-by-step construction of new H2 pipelines for renewable H2 near industry cluster is advisable. In the light of the chick-and-egg problem of establishing a H2-economy, recommendations on H2 supply and demand are drawn, which are also relevant for an international context. |
| Keywords: | Energy transition,socio-technical scenarios,H2 infrastructure,energy policy,climate risks |
| JEL: | H54 Q42 Q48 O33 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:979&r=ene |
| By: | Fabianek, Paul (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | The aim of this study is to assess the economic potentials of power and hydrogen generation via solar and wind energy resources at locations in Northern Germany and California, both of these (geographical) regions beeing pioneers in terms of a sustainable energy transition. Based on extensive research and electrolyzer manufacturer interviews, green hydrogen generation plants are modeled in a MATLAB® environment. All relevant inputs and outputs of the systems studied (wind power plants, Photovoltaic power plants, and polymer electrolyte membrane electrolyzers, among others) are considered for different locations and framework conditions. In contrast to the existing literature, special attention is paid to the part-load behavior of electrolysis systems, which becomes particularly relevant in their interplay with volatile renewables. Metrics such as the levelized costs of electricity (LCOE) of the wind and photovoltaic power plants and the resulting levelized costs of hydrogen (LCOHy) are determined. With the help of the developed model, dimensioning of a whole system’s components can be determined for different locations. A case study is conducted for a Northern German site and another one for a site in the Californian Mojave Desert. Both the optimal dimensioning of the renewable energy plants and the ratio of installed wind and photovoltaic power plant capacity are strongly location-dependent. In Northern Germany, for example, lower LCOHy can be generated at higher wind power plant capacity shares and, in the Mojave Desert, be produced at higher Photovoltaic power plant capacity shares. In general, with larger plants and correspondingly larger polymer electrolyte membrane electrolyzers, LCOHy are lower due to scaling effects. Following this dimensioning recommendation, the LCOHy vary between 4.5 €/kg and 5.2 €/kg in the Northern German case study and between 4.6 US$/kg and 5.3 US$/kg in the Californian one. With costs of 1–2 €/kg, gray hydrogen is still economically superior. |
| Keywords: | Power-to-Gas; Hydrogen; Wind power plants; Photovoltaic power plants |
| JEL: | D25 Q42 |
| Date: | 2021–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2021_002&r=ene |
| By: | Fabianek, Paul (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Glensk, Barbara (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | The novelty of large-scale green hydrogen technology with its numerous applications, and the competition with conventional technologies, still makes it difficult to operate renewable power-to-hydrogen (RP2Hy) plants profitably. In this study, sequential investments in the RP2Hy plant’s components are investigated. Based on a Real Options approach, we tackle the question of what is the optimal timing of sequential investments in RP2Hy modules that enable hydrogen feed-in into the gas grid in Germany and California, both pioneering the energy transition. Choosing this approach, the uncertain and largely irreversible character of the investments in this new technological field is dealt with. Since the focus is on substituting natural gas by adding green hydrogen to the gas grid, the underlying asset considered as stochastic is the price of natural gas. It is modeled applying a geometric Brownian motion process. In the analysis conducted, we find for both California and Germany that polymer electrolyte membrane (PEM) electrolyzer systems are uneconomical in the foreseeable future. The required natural gas price level that would enable economic viability of gas grid feed-in exceeds the level of today's natural gas prices many times over. Without subsidies or an increased willingness to pay for green fuel on the customers’ side, it is unlikely that the required price level will be achieved in the foreseeable future. |
| Keywords: | Real options; Hydrogen; Germany; California |
| JEL: | D25 D81 Q42 |
| Date: | 2021–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2021_001&r=ene |
| By: | Minh Ha-Duong (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, VIET - Vietnam Initiative for Energy Transition) |
| Abstract: | Vietnam's commercial electricity demand grew by 9.6% per year during 2011-2020. MOIT forecasts that the average annual investment cost for the power system over 2021-2030 will be around 9.0-12.6 billion USD per year for generation sources and 1.5-1.6 billion USD for the grid. This article discusses the financial options to mobilize this capital. The private sector's appetite for financing new thermal power projects is low for coal and uncertain for gas; the current energy price crisis suggests deferring any new LNG power plant openings until after 2026. There, the state-owned sector takes the lead. For renewable energy, private investors have shown eagerness to finance new solar and onshore/nearshore wind projects under the feed-in-tariff regime. The subsequent mechanisms will be market-based: auctions and direct power purchase agreements. Offshore wind projects allow the state-owned oil and gas industry to invest jointly with international private developers and reorient its strategy in response to the energy transition. Developing the green bond market is an opportunity for Vietnamese banks. State-owned enterprises can use them to raise money through non-sovereign debt. Finally, a gradual increase in electricity prices will improve the sector's ability to finance the necessary power system expansion. |
| Keywords: | Energy transition,Policy,Finance,LNG,Markets |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03836275&r=ene |
| By: | THIVILLON, Thomas |
| Abstract: | I evaluate the effect of the conversion of households from wood-fuel cooking to liquefied petroleum gas (LPG) cooking on infant mortality using data from sixteen waves of Peru’s continuous Demographic and Health Survey. I exploit the sequential introduction of LPG subsidies targeting low-income households and compare early-treated districts to later or never treated districts using a staggered difference-in-difference estimation strategy. I find that infant mortality increased by 15% as a result of the massive fuel switch induced by the intervention, which corresponds to at least 6,600 additional infant deaths between 2010 and 2020. Subsidizing LPG also caused a higher incidence of symptoms of acute respiratory infections in children under five and of moderate or severe anemia among adult women, two conditions which are known to be induced by exposure to air pollution from cooking fuels. I show that these unexpected results are most likely explained by the fact that the switch to LPG led households which were previously cooking outdoors to start mainly cooking indoors, thus radically modifying the ventilation quality of their cooking area. These findings suggest that clean cooking interventions need to pay more attention to choices of cooking location and to cooking area ventilation. |
| Date: | 2022–09–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:yh5xs&r=ene |
| By: | Matthias Bebber; Stefanie Meilinger; Samer Chaaraoui; Silvan Rummeny; Thorsten Schneiders; Eberhard Waffenschmidt |
| Abstract: | In this paper, a model of a photovoltaic (PV)-diesel-hybrid system is built. In addition to a PV system, this system has a battery storage system and is connected to the public power grid. In case of a failure of all three energy sources, a diesel generator ensures the power supply. With the help of the created model, the influence of different seasons and weather conditions on the PV yield and the entire system is investigated in the period from February 2016 to February 2017. The data for this study was collected in a hospital in Akwatia, Ghana. The hospital is already equipped with a PV system and a diesel generator as backup. Another aspect of the study is the impact of power outages, which are common in this region, on the use of the generator. The results show the relevance of seasonal and infrastructural influences on the operating mode of the system. With the help of the created model it was shown that especially during the rainy season in August the PV output decreases and consequently a lot of energy has to be provided by the public grid and the generator. Another significant drop in PV yield is observed at the time of Harmattan in January. |
| JEL: | Q41 |
| Date: | 2021–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:sau:iznews:2103en&r=ene |
| By: | Nicolli, Francesco; Gilli, Marianna; Vona, Francesco |
| Abstract: | This paper re-examines the relationship between per capita income, inequality, and per capita emissions while accounting for nonhomotheticity in green preferences and nonlinearities in the impact of economic growth on GHG emissions. Theoretically, our research is motivated by the fact that if environmental quality is a need with low priority on the hierarchical scale, the effect of inequality on emissions should vary depending on the level of income per capita. Specifically, for a given level of income per capita, a richer median voter will be more likely to approve of more stringent environmental policies, and thus, lower inequality is beneficial for the environment. With nonhomothetic preferences, the beneficial environmental effect of reducing inequality emerges only for countries that are sufficiently rich. We test this hypothesis by augmenting a standard EKC equation with the interaction between income per capita and the Gini coefficient. Our results for CO2, SO2 and N2O emissions corroborate our main hypothesis: reducing inequality is beneficial for the environment only for rich countries. |
| Keywords: | Labor and Human Capital, Public Economics |
| Date: | 2022–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:329340&r=ene |
| By: | Mar’a Dolores Almeida (Inter-American Development Bank); Hu‡scar Eguino (Inter-American Development Bank); Juan Luis G—mez Reino (Inter-American Development Bank); Axel Radics (Inter-American Development Bank) |
| Abstract: | This paper looks at climate change in decentralized Latin American and Caribbean countries to address two main goals. First, to systematize the main subnational climate initiatives in fiscal decentralization, administrative decentralization, and intergovernmental coordination implemented in the LAC region. Second, to contribute prospectively with potential lines of action related to decentralization and climate change policy measures that will make it possible to sustain the current achievements, as well as to manage climate related risks in the future. Three central questions are explored: How involved have subnational governments been in managing the response to climate change in terms of mitigation and adaptation in LAC? What fiscal decentralization policies and instruments support the development and implementation of SNG climate actions? What policies and instruments of administrative decentralization support the development and implementation of the SNGs climate actions? The authors offer a series of seven prospective actions to address these questions. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper2207&r=ene |
| By: | Benoît Lécureux (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Adrien Bonnet (VeDeCom - VEhicule DEcarboné et COmmuniquant et sa Mobilité); Ouassim Manout (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Jaâfar Berrada (VeDeCom - VEhicule DEcarboné et COmmuniquant et sa Mobilité); Louafi Bouzouina (Open University of the Netherlands [Heerlen], LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Automated mobility has always conveyed fantasies about its ability to meet future mobility needs and challenges. If research is still debating the when, where and how of this mobility disruption, there seems to be a consensus on its advent. Meanwhile, the investigation of the demand for this mobility is of critical importance. Stated preference surveys are a common and powerful tool to foresee this demand. This paper tackles the question of the acceptance of shared autonomous vehicles (SAVs) by reviewing most significant published papers on travel demand and travel surveys for SAVs. Given the recent developments in the last three years, the paper updates and complements previous literature reviews. In contrast with previous research, this paper shows that the impact of various factors on the intention to use SAVs is still controversial. This includes age, gender, income or car ownership. We identify most consensual and controversial effects and correspondingly suggest future research tracks to address some the identified gaps. |
| Keywords: | Shared Autonomous vehicles,Acceptance,Discrete choice,Mode choice,Stated preferences,Attitudes,Literature review Declarations: |
| Date: | 2022–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03814947&r=ene |
| By: | Zunian Luo |
| Abstract: | Electric vehicle adoption is considered 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 disincentives charging station production, which in turn inhibits mass EV adoption. Charging station subsidies are discussed as policy levers that can stimulate charging station supply and correct this market failure. Nonetheless, there is limited research examining the extent such subsidies are successful in promoting charging station supply. 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. |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2210.14908&r=ene |
| By: | Trivikram Dokka; Jorge Bruno; Sonali SenGupta; Chowdhury Mohammad Sakib Anwar |
| Abstract: | We study equilibria in an Electric Vehicle (EV) charging game, a cost minimization game inherent to decentralized charging control strategy for EV power demand management. In our model, each user optimizes its total cost which is sum of direct power cost and the indirect dissatisfaction cost. We show that, taking player specific price independent dissatisfaction cost in to account, contrary to popular belief, herding only happens at lower EV uptake. Moreover, this is true for both linear and logistic dissatisfaction functions. We study the question of existence of price profiles to induce a desired equilibrium. We define two types of equilibria, distributed and non-distributed equilibria, and show that under logistic dissatisfaction, only non-distributed equilibria are possible by feasibly setting prices. In linear case, both type of equilibria are possible but price discrimination is necessary to induce distributed equilibria. Finally, we show that in the case of symmetric EV users, mediation cannot improve upon Nash equilibria. |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2210.15035&r=ene |
| By: | Brown, David P. (University of Alberta, Department of Economics); Sappington, David E. M. (University of Florida) |
| Abstract: | It has been suggested that increasing (or eliminating) the caps on short-term wholesale prices will increase long-term forward contracting for electricity. We find that a higher price cap often enhances the incentives of electricity buyers (e.g., load-serving entities) to undertake forward contracting. However, a higher cap can diminish the incentives of electricity generators to engage in forward contracting. Consequently, higher wholesale price caps are not certain to increase industry forward contracting. |
| Keywords: | wholesale price caps; forward contracting; electricity markets |
| JEL: | L51 L94 Q28 Q40 |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2022_012&r=ene |
| By: | Merkel, Axel (Swedish National Road & Transport Research Institute (VTI)); Nyberg, Erik (Swedish National Road & Transport Research Institute (VTI)); Ek, Karin (Swedish National Road & Transport Research Institute (VTI)); Sjöstrand, Henrik (Swedish National Road & Transport Research Institute (VTI)) |
| Abstract: | The provision of shore power to ships at berth is recognized as an effective measure to reduce the external costs of maritime transport. However, the deployment and uptake of shore power technology is subject to barriers, part of which have to do with insufficient economic incentives for providers and users. Regulatory proposals in the EU have targeted liner shipping segments to be covered by a shore power mandate. There is much less discussion and research focused on other segments of shipping, though these represent a significant share of at-berth emissions. This study uses maritime traffic data and a relatively simple modelling framework to analyse whether public investments in shore power deployment, coupled with added incentives to shipowners, could be socio-economically beneficial. The analysis is focused on maritime traffic in the Swedish port network, but the main findings can likely be generalized beyond this context. We find that investing in (or mandating) the provision of shore power in ports can be socio-economically beneficial also when aimed at segments typically classified as non-liner (or “tramp”). The results do not however indicate that network-wide deployment of shore power is justifiable, but rather that care must be taken to determine the cost-efficient size of the network as well as to design the network of shore power deployment in ports so as to reap benefits of network effects. We also find that the pricing of shore power access has a major impact on expected uptake and consequently on whether or not shore power investments yield benefits in proportion to costs. Crucially, we find that unregulated profit-maximizing pricing by ports leads to significant welfare losses by suppressing take-up among shipowners. |
| Keywords: | Shore power; On-shore power supply; Infrastructure pricing; Cost-benefit analysis; CO2 emission reduction |
| JEL: | Q41 R40 R42 R48 |
| Date: | 2022–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2022_006&r=ene |
| By: | Sherry Hu; Kose John; Balbinder Singh Gill |
| Abstract: | In this study, we evaluate the effects of natural disasters on the stock (market) values of firms located in the affected counties. We are able to measure the change in stock prices of the firms affected by the 2021 Texas winter storm. To measure the abnormal return due to the storm, we use four different benchmark models: (1) the market-adjusted model, (2) the market model, (3) the Fama-French three-factor model, and (4) the Fama French plus momentum model. These statistical models in finance characterize the normal risk-return trade-off. |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2210.16905&r=ene |
| By: | Juan Carlos Cuestas (IEI and Department of Economics, Universitat Jaume I, Castellón, Spain) |
| Abstract: | In this paper we aim to analyse how interest rates and returns on natural gas prices affect returns on house price for the case of Spain. To do we estimate time series models controlling for a series of variables related to the well-being of the economy. Hence, we estimate SVAR models to assess how shocks transmit to the returns on house prices. Additionally, we estimate a NARDL model to judge whether there is a differential effect between increases and decreases in gas prices returns and interest rates on the returns of housing prices. We find that gas prices have a positive impact on housing price returns and that there is an asymmetric effect; drops in gas price returns have a milder effect on house price returns than increases. |
| Keywords: | House prices, Spain, natural gas, supply shocks, interest rates, expectations |
| JEL: | C22 R21 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:jau:wpaper:2022/13&r=ene |
| By: | Salem, Leila Ben (University of Sousse); Nouira, Ridha (University of Sousse); Jeguirim, Khaled (Monastir University); Rault, Christophe (University of Orléans) |
| Abstract: | This paper is an innovative attempt to empirically investigate the determinants of crude oil prices. The main objective is to distinguish between short- and long-term effects of some covariates on oil prices. The autoregressive distributed lag (ARDL) approach is applied to daily series spanning the period from January 2, 2003, to May 24, 2021, to analyze long-run relationships and short-run dynamics. The paper also focuses on the asymmetric effects of covariates and a nonlinear ARDL (NARDL) approach is used to explore this asymmetry. The use of an asymmetric error correction model with asymmetric cointegration provides new insights for examining the determinants of oil prices. All investigations of underlying oil price fluctuations are examined both before and in the COVID-19 pandemic. Our results, based on different econometric specifications, have key policy implications for policymakers both with and without COVID-19 potential considerations. |
| Keywords: | crude oil price, ARDL, Nonlinear ARDL, symmetric and asymmetric, COVID-19 |
| JEL: | C5 Q4 Q43 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15666&r=ene |
| By: | Bijnens, Gert; Duprez, Cédric |
| Abstract: | The sharp rise in energy prices affects all companies in all sectors of the economy. However, not all companies are in a comparable situation, as the share of energy in input purchases can vary from less than 1% to more than 50% from one industry to another. Most energy consumers are naturally more exposed. These include not only industry (basic chemical materials, pesticides, bricks, etc.), but also fishing, forestry, transport and data centres. To measure the impact of this shock on companies, the question is to know to what extent they can pass on the increase in their production costs to their selling prices. If they can do so, the shock is then passed on to the end consumers, whether households or foreign customers, who have to bear price increases. The historical and early current data available indicate some transmission capacity. We estimate that, on average, companies are able to pass on 60% of cost increases to their customers. This pass-through differs between industries and is more important for large companies than for small ones. For energy-intensive industries, the pass-through is generally higher than average, which should somewhat mitigate the effect of the energy shock on companies. However, since the transmission capacity is not complete, the margins of companies will decrease and absorb part of the shock. Under the effect of the indexation mechanisms, the rise in prices also has an impact on wages in Belgium. The labour-intensive branches of activity, mainly in services, are in turn affected. In general, labour-intensive sectors have a low energy intensity, and vice versa. This implies that few sectors experience both a large energy shock and a large wage shock. However, the magnitude of the combined shock is historical for some industries. In general, corporate margins have increased in 2021. A likely difficult year would therefore follow a good year. Here again, there are sectoral disparities, and some industries whose situation was already fragile in 2021 are under even greater pressure (air and inland waterway transport, fruit and vegetables, construction support). |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:266078&r=ene |
| By: | Atayev, Atabek; Hillenbrand, Adrian |
| Abstract: | Policymakers have been discussing various potential measures to cushion the impact of skyrocketing gas prices and prevent supply shortages. On 10 October 2022 an expert commission in Germany proposed a plan to keep natural gas affordable while also preventing shortages. The main element of the plan is a direct subsidy for gas-consuming households. This ZEW Policy Brief aims to warn that price subsidies in the retail market for natural gas could impair competition between providers by reducing incentives for customers to search for cheaper service plans. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:62022&r=ene |
| By: | Bijnens, Gert; Duprez, Cédric |
| Abstract: | De sterke stijging van de energieprijzen zal alle ondernemingen in alle sectoren van de economie treffen. Niet alle ondernemingen bevinden zich echter in een vergelijkbare situatie. Het aandeel van energie in de totale bedrijfsaankopen verschilt immers sterk tussen de verschillende bedrijfstakken en varieert van minder dan 1% tot meer dan 50%. De meest energie-intensieve sectoren zijn uiteraard het meest blootgesteld. Het gaat hierbij niet enkel over de industrie (basischemie, verdelgingsmiddelen, bakstenen, ...), maar ook over de visserij, de bosbouw, het vervoer of de datacentra. De uiteindelijke impact van deze schok op de ondernemingen hangt af van de mate waarin zij de kostenstijging kunnen doorrekenen in hun verkoopsprijzen. Indien ze daarin slagen, wordt de stijging van de productiekosten doorgerekend aan de eindklant. Het zijn dan de gezinnen maar ook de buitenlandse afnemers die de prijsstijgingen uiteindelijk moeten dragen. Op basis van bedrijfsgegevens uit het verleden zien we dat ondernemingen er in zekere mate in slagen kostenstijgingen door te rekenen. Wij stellen vast dat de bedrijven gemiddeld 60% van kostenstijgingen konden doorschuiven naar hun klanten. Deze ‘passthrough’ verschilt per bedrijfstak en is hoger voor grote dan voor kleine ondernemingen. Voor de energieintensieve industrie is de pass-through in het algemeen hoger dan gemiddeld, waardoor het effect van de energiecrisis op de bedrijven enigszins wordt afgezwakt. Vermits de kosten echter niet volledig kunnen worden doorgerekend, verwachten we wel dat de bedrijfsmarges zullen krimpen en een deel van de schok zullen opvangen. Via de automatische indexering heeft deze prijsstijging ook een effect op de lonen. Arbeidsintensieve bedrijfstakken, grotendeels in de dienstensector, worden nu getroffen. In het algemeen hebben arbeidsintensieve bedrijfstakken een lage energie-intensiteit en vice versa. Dit betekent dat slechts weinig sectoren zowel een sterke energieschok als een aanzienlijke loonschok ondervinden. De omvang van de gecombineerde schok is voor sommige bedrijfstakken in historisch opzicht wel substantieel. Over het algemeen zijn de marges van de ondernemingen in de loop van 2021 echter gestegen, waardoor ze sterker staan om de directe en indirecte gevolgen van de energieprijsstijging te kunnen opvangen. Ook hier blijven er sectorale verschillen en komen sommige bedrijfstakken die in 2021 al kwetsbaar waren, verder onder druk te staan (lucht- en scheepsvaart, groenten en fruit, diensten in verband met gebouwen). |
| Keywords: | Firms,Energy prices,Energy shock,Firm profitability |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:266117&r=ene |
| By: | Naef, Alain |
| Abstract: | This paper offers a case study of how a small shareholder managed to impose three more climate-conscious directors on the board of ExxonMobil, one of the world’s largest scope 3 CO2 emitters. This concrete approach to fossil fuel companies’ transition might prove useful for climate change mitigation. The policy has the advantage to work in a vacuum. It has positive impacts on emissions regardless of what other actors do, unlike policies such as global carbon taxes or large-scale divestment, which need more coordination. But it comes with limitations. I find that the proxy campaign led to more attention for the hedge fund running the campaign. It was used as a marketing tool. Despite the limitations, proxy battles could prove a useful approach to pragmatic climate change approaches. |
| Date: | 2022–08–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:3b5d4&r=ene |
| By: | Aude Pommeret (USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Francesco Ricci (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Katheline Schubert (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) |
| Abstract: | Confronted with political opposition to the implementation of efficient direct carbon pricing, climate policy relies on alternative policy interventions, such as subsidies to renewables. This paper uses a dynamic macroeconomic model under a carbon budget to study climate policies constrained to keeping a constant level of the carbon tax. We find that it is possible to implement the optimal trajectory by combing an increasing tax on electricity consumption with a feedin-premium paid to electricity produced from renewable sources. Otherwise, when the climate policy relies on the second instrument only, the subsidy to renewables should be so large to foster rapid build up of specialized capital, that it would imply large investment costs and financial burden on the public budget, unless the carbon tax level could be initially set at a high level. Unfortunately, the two solutions with no or low welfare losses raise concerns on their political acceptability too. |
| Keywords: | Energy transition,Carbon tax,Renewable energy,Policy acceptability |
| Date: | 2022–06–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03726396&r=ene |
| By: | Di Foggia, Giacomo; Beccarello, Massimo |
| Abstract: | Carbon pricing aims to capture the external costs of emissions and link them to their sources through a price signal, while market-based policy tools support investments in energy efficiency, rewarding investors following certified energy savings. The interplay between the emission trading system and the white certificate scheme is complex, especially regarding opportunity costs and the efficiency of the two mechanisms combined in achieving environmental goals. Using monthly data covering six years, we analyze how carbon pricing and white certificate programs intertwine. We consider the opportunity cost as the savings from an energy efficiency intervention under the white certificate program in a firm covered by the emission trading system. We calculate the €/MWh savings corresponding to a one MWh reduction in energy consumption to assess the contribution of white certificates and the emission trading system as determinants of the savings induced by an energy efficiency intervention. We then simulate how the economic determinants of saving vary as the dynamics of the gas and emission permit markets change. The relative weight of the components on saving differs significantly according to the dynamics of the related commodity and environmental markets. Provided that the emission trading system is mandatory for certain industries while participation in a white certificate scheme is voluntary, we argue that the overlap between the two mechanisms can be effective. This is important for policymaking, periodic fine-tuning interventions to market-based mechanisms, and increasing flexibility. The paper also has business implications, given that energy managers may use this framework in building energy management strategies. |
| Date: | 2022–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:tbyug&r=ene |
| By: | Ho, Phuong |
| Abstract: | Economists have long established the cost effectiveness of cap and trade (CAT) owing to the cost heterogeneity between firms. I offer a new value of CAT: cost reduction within firms owing to productivity improvement and economies of scale. Overcoming the unobserved-cost challenge, I extend the literature on production function and introduce a method to estimate economies of scale using data on output and input quantity. I combine this method with the difference-in-difference strategy to exploit the policy transition from non-tradable cap to cap and trade in Norwegian cod fishery to identify the causal impacts of trading fishing quotas. I find trading increased vessels' productivity and facilitated the realization of existing economies of scale: vessels acquired quotas, expanded their operation, and moved toward the minimum average cost levels. Vessels realized economies of scale by upgrading their sizes and going fishing more often. I decompose the output-based value of traded quotas and find economies of scale played a main role in the first few years after a big vessel acquired quotas. These results highlight (i) flexibility through tradability in environmental regulations can reduce production costs of a firm, (ii) cost reduction is gained by both boosting existing production factors and advancements beyond scale economies, and (iii) consolidation can be a sign of cost efficiency owing to economies of scale rather than market power abuse. |
| Date: | 2021–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:9ce2v&r=ene |
| By: | Nosra Ben Fradj (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laure Bamière (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | L'agriculture en Grand-Est est le troisième secteur émetteur de GES, après les transports et l'industrie. Le bilan du secteur agricole peut être amélioré par le biais de la mise en oeuvre des pratiques permettant de réduire les émissions GES, préserver et accroître le stockage de carbone dans les sols et la biomasse. Cette fiche présente les principaux résultats de ces travaux pour la région Grand-Est et promeut les pratiques les plus atténuantes. |
| Keywords: | atténuation GES,Stockage de carbone,MACC,coût d'abattement,Grand-Est |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03788965&r=ene |
| By: | Nosra Ben Fradj (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laure Bamière (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Deuxième secteur émetteur de GES après les transports, l'agriculture en Occitanie contribue à hauteur de 24% aux émissions de GES. En même temps, elle représente un potentiel d'atténuation élevé lorsque des pratiques agricoles permettant de réduire les émissions GES, préserver et accroître le stockage de carbone dans les sols et la biomasse, sont mises en oeuvre. Cette fiche présente les principaux résultats de ces travaux pour la région Occitanie et promeut les pratiques les plus atténuantes. |
| Keywords: | atténuation GES,stockage de carbone,MACC,coût d'abattement,Occitanie |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03789315&r=ene |
| By: | Nosra Ben Fradj (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laure Bamière (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | L'agriculture ligérienne est le premier secteur émetteur de GES. Les émissions de GES n'ont baissé que d'environ 1% en l'espace de six ans. La baisse pourrait être drastique si des pratiques permettant de réduire les émissions GES, préserver et accroître le stockage de carbone dans les sols et la biomasse, sont mises en oeuvre. Cette fiche présente les principaux résultats de ces travaux pour la région Pays de la Loire et promeut les pratiques les plus atténuantes. |
| Keywords: | Atténuation GES,stockage de carbone,MACC,coût d'abattement,Pays de la Loire |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03789297&r=ene |
| By: | Stefano Moretti (LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Raja Trabelsi (LAMSADE - Laboratoire d'analyse et modélisation de systèmes pour l'aide à la décision - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique, LARODEC - Laboratoire de Recherche Opérationnelle de Décision et de Contrôle de Processus - Université de Tunis - ISG de Tunis) |
| Abstract: | Global warming, as a result of greenhouse gases, is exceeding the planet's temperature stabilization capacities. Thus, greenhouse gas emissions must be reduced. We analyse a bankruptcy situation aimed at allocating emissions permits of CO2, the predominant greenhouse gas emitted by human activities. Inspired by the Constrained Equal Awards (CEA) solution for bankruptcy situations, we introduce a new allocation protocol based on the extension of the CEA solution over double-weighted bankruptcy situations, including two exogenous parameters aimed at providing a balance, in the request of emissions permits, between economic activities and the production of renewable energy. In these bi-criteria allocation problems, we focus on a computational approach to find an allocation protocol that does not prioritize any particular parameter. As an application of our method, we first consider CO2 permit allocation problems in European Union (EU) countries, using real data about the gross domestic product (GDP), the production rate of renewable energies, and countries' ‘demands' of CO2 emissions from 2010 to 2014. Then, we compare our approach with the CEA solution and its single-weighted extension to show the impact of using two weights over the distribution of CO2 emissions permits; we analyse the correlation between allocations of CO2 emission permits and the distribution of power within the EU Council to study the acceptability of alternative allocations. |
| Keywords: | bankruptcy situations,CO 2 emissions permits,double-weighted allocation protocol |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03835536&r=ene |
| By: | Stefanie Meilinger; Anna Herman-Czezuch; Nicola Kimiaie; Christopher Schirrmeister; Rone Yousif; Stefan Geiss; Leonhard Scheck; Martin Weissmann; Felix Gödde; Bernhard Mayer; Tobias Zinner; James Barry; Klaus Pfeilsticker; Markus Kraiczy; Kevin Winter; Abdullah Altayara; Christian Reise; Mariella Rivera; Hartwig Deneke; Jonas Witthuhn; Jethro Betcke; Marion Schroedter-Homscheidt; Philipp Hofbauer; Bernhard Rindt |
| Abstract: | In the research project "MetPVNet", both, the forecast-based operation management in distribution grids and as well as the forecasts of the feed-in of PV-power from decentralized plants could be improved on the basis of satellite data and numerical weather forecasts. Based on a detailed network analyses for a real medium-voltage grid area, it was shown that both – the integration of forecast data based on satellite and weather data and the improvement of subsequent day forecasts based on numerical weather models – have a significant added value for forecast-based congestion management or redispatch and reactive power management in the distribution grid. Furthermore, forecast improvements for the forecast model of the German Weather Service were achieved by assimilating visible satellite imagery, and cloud and radiation products from satellites were improved, thus improving the database for short-term forecasting as well as for assimilation. In addition, several methods have been developed that will enable forecast improvement in the future, especially for weather situations with high cloud induced variability and high forecast errors. This article summarizes the most important project results. |
| Keywords: | Distribution grid management, photovoltaics, generation forecast, satellite products, numerical weather prediction, radiation, cloud parameters, reflectance, COD, AOD, radiation variability, spectral influence, Si reference cells, inversion, energy meteorology |
| JEL: | Q42 Q47 |
| Date: | 2021–12–16 |
| URL: | http://d.repec.org/n?u=RePEc:sau:iznews:2104&r=ene |
| By: | Mumbunan, Sonny (World Resources Institute (WRI) Indonesia); Maitri, Ni Made Rahayu |
| Abstract: | A basic income (BI) for outcomes associated with nature protection and climate change is a subject of increasing interest in theory and policy-making. In this paper, we present the first review of BI for nature and climate. We address three BI issues critical to nature and climate in terms of conditionality, decoupling, and financing. First, the conditionality on nature and climate outcomes appears to contradict the defining criterion of unconditionality of a BI, although this contradiction may be resolved in those cases where the expected outcomes are only implicit. Second, the ecological outcome of BI remains elusive about decoupling of emissions and biodiversity loss from economic growth. Third, financing a BI for “nature and climate” from sources that are carbon intensive and degrade the ecosystem may impose limits on ecological and financial sustainability and is critical in enabling a BI to achieve greater ecological benefits. The paper illustrates and provides insights into all three issues considered with selected theoretical and practical global cases of BI. |
| Date: | 2022–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:bre43&r=ene |
| By: | Diego Rodríguez Rodríguez |
| Abstract: | El propósito de este trabajo es ordenar, describir y valorar brevemente las medidas que se han ido tomando en España para paliar los efectos derivados del incremento de los precios de la energía (electricidad y gas) en el transcurso del último año. Para ello, en el apartado 2 se sigue un esquema temático, agrupando las medidas en función de su contenido y no según su orden cronológico. En todos los casos, se describe inicialmente la medida adoptada para, posteriormente, hacer un comentario o valoración sobre la misma. En el apartado 3 se concluye y se valora brevemente la situación actual de la discusión sobre nuevas medidas regulatorias en el ámbito europeo. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdafen:2022-27&r=ene |
| By: | von Zahn, Moritz; Bauer, Kevin; Mihale-Wilson, Cristina; Jagow, Johanna; Speicher, Max; Hinz, Oliver |
| Abstract: | With free delivery of products virtually being a standard in E-commerce, product returns pose a major challenge for online retailers and society. For retailers, product returns involve significant transportation, labor, disposal, and administrative costs. From a societal perspective, product returns contribute to greenhouse gas emissions and packaging disposal and are often a waste of natural resources. Therefore, reducing product returns has become a key challenge. This paper develops and validates a novel smart green nudging approach to tackle the problem of product returns during customers' online shopping processes. We combine a green nudge with a novel data enrichment strategy and a modern causal machine learning method. We first run a large-scale randomized field experiment in the online shop of a German fashion retailer to test the efficacy of a novel green nudge. Subsequently, we fuse the data from about 50,000 customers with publicly-available aggregate data to create what we call enriched digital footprints and train a causal machine learning system capable of optimizing the administration of the green nudge. We report two main findings: First, our field study shows that the large-scale deployment of a simple, low-cost green nudge can significantly reduce product returns while increasing retailer profits. Second, we show how a causal machine learning system trained on the enriched digital footprint can amplify the effectiveness of the green nudge by "smartly" administering it only to certain types of customers. Overall, this paper demonstrates how combining a low-cost marketing instrument, a privacy-preserving data enrichment strategy, and a causal machine learning method can create a win-win situation from both an environmental and economic perspective by simultaneously reducing product returns and increasing retailers' profits. |
| Keywords: | Product returns,Green Nudging,Causal Machine Learning,Enriched Digital Footprint |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:363&r=ene |
| By: | Nicolo Barbieri; Davide Consoli; Giovanni Marin; Francois Perruchas |
| Abstract: | Climate change is a global phenomenon with markedly local manifestations. Accordingly, territories differ in terms of exposure to climate events, of capacity to adopt climate mitigation policies and of the welfare effects that these deep transformations entail. The paper brings together these threads with an empirical study of the relationship between green technology development and income inequality in US Metropolitan Areas over the period 2005-2015. We find a positive association between local patenting capacity and growing income gaps to the detriment of the least affluent. Further, higher patenting propensity in early stage technologies has a stronger association with income inequality, whereas such a relationship dissipates at later stages of the life cycle. |
| Keywords: | environmental technologies, technology lifecycle, inequality |
| JEL: | O33 R11 D63 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2225&r=ene |
| By: | Guo, Liwen; Cheng, Zhiming; Tani, Massimiliano; Cook, Sarah; Zhao, Jiaqi; Chen, Xi |
| Abstract: | We examine the causal effect of air pollution on an individual's propensity for entrepreneurship in China. Our preferred model, which employs an instrumental variable approach to address endogeneity arising from sorting into entrepreneurship and locational choices, suggests that exposure to higher intensity of air pollution lowers one's proclivity for entrepreneurship. We also find that industrial activity and self-efficacy mediate the relationship between air pollution and entrepreneurship. In addition, education and gender further moderate the relationship between air pollution and self-efficacy. In particular, air pollution negatively affects self-efficacy among the less-educated and females. |
| Keywords: | Air pollution,Entrepreneurship,China |
| JEL: | J24 L26 Q53 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1196&r=ene |
| By: | Ruggeri, Giuseppe |
| Abstract: | This paper provides estimates of household energy consumption in the United States in 2019 by adding passenger transportation to residential consumption. It also separates household energy consumption into two components: standard and optional and shows that the latter accounts for 29 percent of the total. |
| Keywords: | energy consumption,household energy,United States energy |
| JEL: | J10 J20 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:266338&r=ene |
| By: | Lou-Ann Guyomarc (PARIS SACLAY UNIVERSITY); Pierre Gonin (PARIS SACLAY UNIVERSITY); Yannick Perez (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Date: | 2022–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03815525&r=ene |
| By: | Di Foggia, Giacomo; Beccarello, Massimo |
| Abstract: | Governance of waste management is historically based on local issues, with different applications and rules across countries. To meet the increasing number of circular economic goals, countries worldwide are seeking to improve the efficiency of waste management markets in terms of environmental performance and cost efficiency. For this market to effectively move toward a more circular perspective, sound reforms are needed at the market design level. We suggest that a system operator should be introduced in the industry to coordinate and support the healthy functioning of the market. We develop our idea starting from lessons learned from the energy market that apply governance characteristics and environmental goals. Focusing on the industry structure, we identify tasks and duties that a waste management system operator should perform to boost the transition toward a more circular economy. Our proposal has policy ramifications, with the most important identifying an appropriate legal entity. The study has managerial implications, and we suggest that a system operator is needed for reporting environmental results, ensuring the universality of service, planning and monitoring environmental goals, and supporting local authorities, as well as other coordination activities. These activities will facilitate a move toward a more circular economy, addressing issues concerning the complexity of waste management industries, markets, and outputs. |
| Date: | 2022–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:7gw8c&r=ene |
| By: | Monsef, Roschan; Wendland, Finn Arnd |
| Abstract: | Um die ökologische Transformation der Wirtschaft zu bewältigen, bedarf es in den kommenden Jahren vieler qualifizierter Fachkräfte. Zur Umsetzung der Klimaziele ist eine Vervielfachung des Ausbaufortschritts bei den erneuerbaren Energien in Deutschland notwendig, und auch der Anteil klimaneutraler Technologien in Verbrauchssektoren wie Industrie, Verkehr und Gebäude muss stärker wachsen als bisher. Infolge des demografischen Wandels nimmt gleichzeitig die Zahl der Erwerbspersonen ab. Bis 2036 werden 12,9 Millionen Erwerbspersonen das Renteneintrittsalter überschritten haben. Dies entspricht knapp 30 Prozent der dem Arbeitsmarkt zur Verfügung stehenden Erwerbspersonen. Um künftigen Personalengpässen vorzubeugen, spielen unter anderem Aus- und Weiterbildungen in klimaschutzwirksamen Tätigkeitsfeldern eine Schlüsselrolle. Ziel dieser Studie ist es, zentrale Merkmale und Gemeinsamkeiten von beruflichen Tätigkeiten in Bereichen der Energiewende zu identifizieren. Grundlage des Forschungsvorhabens ist die Annahme, dass insbesondere der Ausbau der erneuerbaren Energien weitreichende Veränderungen der beruflichen Tätigkeiten in der Wirtschaft befördert. Gründe für diese Veränderungen sind unter anderem Umstellungen bei der Energieerzeugung aber auch bei der Verteilung, Speicherung und Nutzung von Energie aus regenerativen Quellen. |
| JEL: | J21 J62 Q40 Q42 Q52 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkrep:572022&r=ene |
| By: | Michael Holscher; David Ignell; Morgan Lewis; Kevin J. Stiroh |
| Abstract: | This paper presents a stylized framework to assess conceptually how the financial risks of climate change could interact with a regulatory capital regime. We summarize core features of a capital regime such as expected and unexpected losses, regulatory ratios and risk-weighted assets, and minimum requirements and buffers, and then consider where climate-related risk drivers may be relevant. We show that when considering policy implications, it is critically important to be precise about how climate change may impact the loss-generating process for banks and to be clear about the specific policy objective. While climate change could potentially impact the regulatory capital regime in several ways, an internally coherent approach requires a strong link between specific assumptions and beliefs about how these financial risks may manifest as bank losses and what objectives regulators are pursuing. We conclude by identifying several potential research opportunities to better understand these complex issues and inform policy development. |
| Keywords: | Climate change; Regulatory capital |
| JEL: | G21 G28 |
| Date: | 2022–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2022-68&r=ene |
| By: | Matthias Bebber; Stefanie Meilinger; Samer Chaaraoui; Silvan Rummeny; Thorsten Schneiders; Eberhard Waffenschmidt |
| Abstract: | In diesem Paper wird ein Modell eines Photovoltaik(PV)-Diesel-Hybrid-Systems aufgebaut. Dieses System besitzt neben einer PV-Anlage einen Batteriespeicher und ist an das öffentliche Stromnetz angeschlossen. Bei einem Ausfall aller drei Energiequellen stellt ein Dieselgenerator die Stromversorgung sicher. Mit Hilfe des erstellten Modells wird der Einfluss der unterschiedlichen Jahreszeiten und Wetterbedingungen auf den PV-Ertrag und das gesamte System im Zeitraum von Februar 2016 bis Februar 2017 untersucht. Die Messdaten dafür stammen von einem Krankenhaus in Akwatia, Ghana. Das Krankenhaus besitzt bereits eine PV-Anlage und einen Dieselgenerator als Backup. Ein weiterer Aspekt der Untersuchung ist der Einfluss der Stromausfälle, die in dieser Region häufig vorkommen, auf den Einsatz des Generators. Resultat der Untersuchung ist die Relevanz saisonaler und infrastruktureller Einflüsse auf die Betriebsweise des Systems. Mit Hilfe des erstellten Modells wurde analysiert, dass besonders während der Regenzeit im August die PV-Leistung sinkt und folglich viel Energie durch das öffentliche Stromnetz und den Generator bereitgestellt werden muss. Ein weiterer signifikanter Einbruch im PV-Ertrag ist zur Zeit des Harmattans im Januar zu verzeichnen. - |
| JEL: | Q41 |
| Date: | 2021–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:sau:iznews:2103de&r=ene |
| By: | Kawaguchi, Kohei; Noda, Shunya |
| Abstract: | Proof-of-Work cryptocurrencies, such as Bitcoin and its forks, hire miners (freelance contributors) to maintain the system by algorithmically setting the reward. Therefore, the nature of miners' labor supply is essential for the cryptocurrency's stability. We develop a short-run supply-side model of the multicurrency mining market and estimate miners' labor supply elasticity by exploiting the discontinuity created by an event called halving. The stability of Bitcoin hinges on external factors lowering the labor supply elasticity, such as the interaction with competing currencies. Upgrading algorithm can stabilize Bitcoin regardless of external factors and improve the mining market's energy consumption rate by 2.9%. |
| Date: | 2022–08–26 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:u58ns&r=ene |
| By: | Georgios Bampinas (Panteion University of Athens, Greece); Theodore Panagiotidis (University of Macedonia, Greece); Georgios Papapanagiotou (University of Macedonia, Greece) |
| Abstract: | In this paper, we examine the existence of sentiment exposure in oil price returns. We augment the SVAR model of Kilian and Park ( International Economic Review , 2009, 50, 1267–1287) by including the effects of (1) investors sentiment proxied by Google's search volume index, (2) economic policy uncertainty (EPU) and (3) time variation in both coefficients and the variance-covariance matrix. Our empirical results show that changes in investor attention do exhibit a significant long-lasting impact on oil and stock market returns. Aggregate oil demand and supply shocks have a transitory effect on investor sentiment. We reveal that the impact of EPU is temporary and significant, while EPU responds strongly to shocks on oil prices and stock market returns. In all cases, the magnitude and sign of responses are affected by the timing of the shock. Our findings are robust to an alternative sentiment indicator and once the role of oil inventories is considered. |
| Keywords: | Search Volume Index, investor attention, oil price, stock market, policy uncertainty, time-varying parameter VAR, stochastic volatility, dynamic factor model |
| JEL: | Q02 Q43 Q47 E44 G1 C11 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:22-13&r=ene |
| By: | Andreas Lichtenberger; Joao Paulo Braga; Willi Semmler (Schwartz Center for Economic Policy Analysis (SCEPA)) |
| Abstract: | The green bond market is emerging as an impactful financing mechanism in climate change mitigation efforts. The effectiveness of the financial market for this transition to a low-carbon economy depends on attracting investors and removing financial market roadblocks. This paper investigates the differential bond performance of green vs non-green bonds with (1)a dynamic portfolio model that integrates negative as well as positive externality effects and via (2) econometric analyses of aggregate green bond and corporate energy time-series indices; as well as a cross-sectional set of individual bonds issued between 1 January 2017, and 1 October 2020. The asset pricing model demonstrates that, in the long-run, the positive externalities of green bonds benefit the economy through positive social returns. We use a deterministic and a stochastic version of the dynamic portfolio approach to obtain model-driven results and evaluate those through our empirical evidence using harmonic estimations. The econometric analysis of this study focuses on volatility and the risk–return performance (Sharpe ratio) of green and non-green bonds, and extends recent econometric studies that focused on yield differentials of green and non-green bonds. A modified Sharpe ratio analysis, cross-sectional methods, harmonic estimations, bond pairing estimations, as well as regression tree methodology, indicate that green bonds tend to show lower volatility and deliver superior Sharpe ratios (while the evidence for green premia is mixed). As a result, green bond investment can protect investors and portfolios from oil price and business cycle fluctuations, and stabilize portfolio returns and volatility. Policymakers are encouraged to make use of the financial benefits of green instruments and increase the financial f lows towards sustainable economic activities to accelerate a low-carbon transition. |
| Keywords: | green bonds; innovation; climate finance; dynamic portfolio decisions |
| JEL: | E24 I14 J62 J38 E21 J83 J32 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:epa:cepawp:2022-02&r=ene |
| By: | Atkinson, Nathan |
| Abstract: | To deter a profit-maximizing corporation from breaking the law, the expected costs from noncompliance must be greater than the expected costs from compliance. In this paper, I examine the costs of corporate compliance and noncompliance with the Clean Air Act. Using the universe of civil Clean Air Act environmental violations by stationary emitters of pollution, I estimate that 37.5% of civil violations are profitable net of penalties imposed. The profitability of noncompliance is increasing in the size of the violation. In aggregate, I estimate that penalties imposed by the EPA would have to be five times greater than those imposed in order to achieve the EPA's stated policy goal of removing the economic benefits of noncompliance. I further show that the firms that profit the most from violations are also the largest emitters of pollution. |
| Date: | 2022–07–29 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:jk4r7&r=ene |
| By: | Reichelstein, Stefan |
| Abstract: | Current corporate disclosures regarding carbon emissions lack commonly accepted accounting rules. The accrual accounting system for carbon emissions described here is grounded in the rules of historical cost accounting for operating assets, enabling the preparation of balance sheets and flow statements. The asset side of the balance sheet reports the carbon emissions embodied in operating assets. The liability side conveys the firm's cumulative direct emissions into the atmosphere as well as the cumulative emissions embodied in goods acquired from suppliers less those sold to customers. Flow statements report the cradle-to-gate carbon footprint of goods sold during the current period. Taken together, balance sheets and flow statements generate multiple indicators of a company's past, current and future performance with regard to carbon emissions. |
| JEL: | M41 M48 Q53 Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22052&r=ene |
| By: | Thierry Madiès (Université de Fribourg, Switzerland.); Ornella Tarola (DISSE, Rome, Italy); Emmanuelle Taugourdeau (CNRS, CREST, Palaiseau, France) |
| Abstract: | Developed and developing countries compete using various instruments including corporate taxes and environmental regulations in order to attract firms. They also commit to international environmental agreements with “common but differentiated responsibilities” (CBDR). We investigate how the principles of CBDR and of “in a position to do so” embedded in global environmental agreements affect optimal corporate taxes and environmental standards. We find that the latter depend only on the mitigation burdens imposed by international agreements. In other words, the burden of competition between countries is carried by corporate taxes, which depend among others on the level of firms’ mobility costs and on production cost differentials. Interestingly, we find that developed countries are not necessarily worse-off in terms of payoffs under CBDR, while emerging countries “in a position to do so” are not necessarily harmed by assuming responsibilities. |
| Keywords: | Tax Competition, Capital Integration, Global Pollution, Environmental agreements. |
| JEL: | H2 R3 R5 Q5 |
| Date: | 2022–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2022-21&r=ene |
| By: | Brehm, Johannes; Pestel, Nico; Schaffner, Sandra; Schmitz, Laura |
| Abstract: | Low Emission Zones (LEZs) reduce local air pollution by restricting emission-intensive vehicles from accessing designated areas and have been shown to improve population health. Little is known about the effects of driving restriction policies on other areas of life. This paper studies the effects of LEZs on the educational achievements of elementary school students in Germany, measured by secondary-school transition rates. Using school-level data from North-Rhine Westphalia (NRW), Germany's largest federal state, we exploit the staggered adoption of LEZs since 2008 in a difference-indifferences framework. Our results imply that LEZs increased rates of transition to the academic track by 0.9-1.6 percentage points in NRW. Our findings on the district level for all of Germany confirm the external validity of these findings. Using geo-referenced data from the German Socio-Economic Panel, we provide suggestive evidence that a reduction in the prevalence of respiratory infections is a vital channel through which LEZs affect schooling outcomes. |
| Keywords: | Low emission zone,education,air quality,Germany |
| JEL: | I21 J24 Q52 Q53 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:980&r=ene |
| By: | Ali, Amjad; Audi, Marc; Hamadeh, Hani Fayad |
| Abstract: | Presently, environmental degradation is the prime concern of the world economies as a whole. Following this concern, Sustainable Development Goals designed by the UNDP raise the slogan “Clear Environment for All”. This paper has analyzed the impact of business freedom on environmental degradation in the case of 110 developing countries from 2000 to 2020. Panel least squares and generalized moments methods have been applied to check the impact of explanatory variables on dependent variables. The results show that business freedom and renewable energy consumption have a negative and significant impact on environmental degradation in selected developing countries. The results explain that financial development has a positive and significant impact on environmental degradation in developing countries. Whereas urbanization has a positive and significant impact on environmental degradation. Thus, for the reduction of environmental degradation business freedom and renewable energy consumption should be promoted, whereas negative linkages of urbanization and financial development should be reduced. |
| Keywords: | renewable energy consumption, business freedom, environmental degradation |
| JEL: | F41 Q30 Q56 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115219&r=ene |
| By: | Brown, David P. (University of Alberta, Department of Economics); Sappington, David E. M. (University of Florida) |
| Abstract: | We examine the reductions in electricity procurement costs that can be secured when gain-sharing regulation is employed to induce a regulated load serving entity (LSE) to undertake forward contracting despite associated political risk. We identify arguably plausible conditions under which a modest degree of gain sharing can induce an LSE to undertake forward contracting that substantially reduces the LSE's procurement costs, to the benefit of retail consumers. |
| Keywords: | forward contracting; incentive regulation; gain sharing |
| JEL: | L51 L94 Q28 Q40 |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2022_010&r=ene |
| By: | Ricardo Crisostomo |
| Abstract: | We develop a comprehensive framework to measure the impact of the climate transition on investment portfolios. Our analysis is enriched by including geographical, sectoral, company and ISIN-level data to assess transition risk. We find that investment funds suffer a moderate 5.7% loss upon materialization of a high transition risk scenario. However, the risk distribution is significantly left-skewed, with the worst 1% funds experiencing an average loss of 21.3%. In terms of asset classes, equities are the worst performers (-12.7%), followed by corporate bonds (-5.6%) and government bonds (-4.8%). We discriminate among financial instruments by considering the carbon footprint of specific counterparties and the credit rating, duration, convexity and volatility of individual exposures. We find that sustainable funds are less exposed to transition risk and perform better than the overall fund sector in the low-carbon transition, validating their choice as green investments. |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2210.15329&r=ene |
| By: | Paolo Maranzano; Matteo Maria Pelagatti |
| Abstract: | Event Studies (ES) are statistical tools that assess whether a particular event of interest has caused changes in the level of one or more relevant time series. We are interested in ES applied to multivariate time series characterized by high spatial (cross-sectional) and temporal dependence. We pursue two goals. First, we propose to extend the existing taxonomy on ES, mainly deriving from the financial field, by generalizing the underlying statistical concepts and then adapting them to the time series analysis of airborne pollutant concentrations. Second, we address the spatial cross-sectional dependence by adopting a twofold adjustment. Initially, we use a linear mixed spatio-temporal regression model (HDGM) to estimate the relationship between the response variable and a set of exogenous factors, while accounting for the spatio-temporal dynamics of the observations. Later, we apply a set of sixteen ES test statistics, both parametric and nonparametric, some of which directly adjusted for cross-sectional dependence. We apply ES to evaluate the impact on NO2 concentrations generated by the lockdown restrictions adopted in the Lombardy region (Italy) during the COVID-19 pandemic in 2020. The HDGM model distinctly reveals the level shift caused by the event of interest, while reducing the volatility and isolating the spatial dependence of the data. Moreover, all the test statistics unanimously suggest that the lockdown restrictions generated significant reductions in the average NO2 concentrations. |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2210.17529&r=ene |
| By: | Suarez, Ronny |
| Abstract: | This paper provides an ad-hoc classification of countries using available World Bank values of 2019 CO2eq emissions (metric tons per capita). Countries are classified as: extremely high, very high, high, upper middle, middle, lower middle, low, and very low emitters. Categorization is validated through an ANOVA analysis that confirm the statistical differences between defined categories. |
| Keywords: | CO2; GHG; emissions |
| JEL: | C1 |
| Date: | 2022–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115262&r=ene |
| By: | Khuc, Quy Van; Tran, Phuong-Mai; Nguyen, Thuy; ; Dang, Phuong-Thao; Tuyen, Dang Trung; Pham, Phu; Dat, Luu Quoc |
| Abstract: | Industrialization and consumerism have aroused growing concern about energy depletion, necessitating a transition from fossil fuel to renewable energy sources. To this end, every segment of the population should shoulder responsibility for mitigating environmental problems, especially the young generation. This study contributes to the literature on environment management and development by improving the understanding of young adults’ intention to acquire energy conservation knowledge and its correlation with their demographics and environmental concerns. We employed a systematic randomized sampling method and conducted a large-scale online survey with the participation of 1454 students in 48 different universities in Vietnam. The first results show that young adults had significant environmental concerns, yet more efforts are demanded to turn perceptions into actions or contributions. Almost 83% expressed a desire for energy-saving knowledge, and roughly 50% are willing to take an energy course. We found that the young adults' perception and high income were positively associated with their decision on energy course enrolment. Demographically, women were more likely to take energy-saving courses, and those living urban areas had a higher desire for knowledge enhancement. These findings have numerous policy implications for facilitating energy transformation based on improved environmental education programs for sustainable development in Vietnam and beyond. |
| Date: | 2022–10–15 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:5vphg&r=ene |
| By: | Rebecca Newman; Ilan Noy |
| Abstract: | Extreme weather events have significant adverse costs for individuals, firms, communities, regional, and national economies. Extreme Event Attribution (EEA), a methodology that examines the degree to which anthropogenic greenhouse gas emissions had changed the occurrence of specific extreme weather events, allows us to quantify the climate-change-induced component of these costs. We use EEA to aggregate the global economic damage from extreme weather events that is attributable to anthropogenic climate change. For that, we collect data from all available attribution studies which estimate the Fraction of Attributable Risk (FAR) for extreme events, and combine these FAR estimates with data on the socio-economic costs of these events. With extrapolation for missing data, we then arrive at our benchmark estimates. We find that US$ 143 billion per year, of the costs of extreme events during the last twenty years, is attributable to anthropogenic climatic change. This EEA-based method for calculating the costs of climate change from extreme weather differs fundamentally from other approaches to climate cost estimation. Those other approaches use macroeconomic modelling embedded within climate models in various types of Integrated Assessment Models (IAM). As we show, our research is not directly comparable, but it does provide a new form of evidence that suggests that most IAMs are substantially under-estimating the current economic costs of climate change. Given some of the data deficiencies we identify in terms of temporal and spatial coverage, the purpose here is not to produce a definitive quantification, but rather to sketch a path towards a more comprehensive and reliable estimation. As better EEA studies and more thorough and exhaustive economic costs estimates for extreme events become available over time, and the method is refined, the precision of this approach's estimates will increase in tandem. |
| JEL: | Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10053&r=ene |
| By: | Nosra Ben Fradj (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Laure Bamière (ECO-PUB - Economie Publique - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | L'ADEME propose 13 fiches régionales de la France métropolitaine, complétées d'une fiche introductive générale, pour accompagner les acteurs régionaux - décideurs publics et acteurs du monde agricole, dans la priorisation, la mise en oeuvre et le déploiement des leviers d'action pour la réduction des émissions de gaz à effet de serre (GES) et le stockage de carbone dans le secteur agricole. Ces fiches valorisent les résultats clés de deux travaux phares dans le secteur : * le projet «BANCO - Analyse des freins et des mesures de déploiement des actions d'atténuation " à coût négatif " dans le secteur agricole» (I Care & Consult, INRAE, CEREOPA, 2017) * l'étude «Stocker du carbone dans les sols français» (INRAE, 2019), plus communément appelée étude «4/1000», qui ont abouti à des évaluations par pratique des potentiels de réduction GES et de stockage de carbone et de coûts. |
| Keywords: | Atténuation GES,Stockage de carbone,MACC,coût d'abattement |
| Date: | 2021–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03788832&r=ene |
| By: | Marcelo Ochoa; Matthias Paustian; Laura Wilcox |
| Abstract: | It is difficult to assess the effectiveness of investment strategies that screen companies based on environmental criteria to hedge climate change risk because physical risks have not yet fully materialized and policies to combat climate change are usually widely anticipated. This paper sidesteps these limitations by analyzing the stock market response to plausibly exogenous changes in expectations about the level of a carbon tax in Germany. The risk-adjusted return on two sustainable investment approaches---screening companies based on environmental scores and on firms' carbon footprint---around the carbon tax news reveals that firms with a high environmental score did not perform any better than those with a low environmental score. In contrast, the stock price of firms with low carbon emissions increased in value relative to those with a high carbon footprint. Carbon intensity explains the cross-sectional reaction to the carbon tax news because it predicts revisions in expected profitability. |
| Keywords: | Climate risk; Portfolio choice; Stock returns; Carbon pricing; ESG |
| JEL: | G38 G11 Q54 G14 |
| Date: | 2022–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2022-73&r=ene |
| By: | Larch, Mario; Wanner, Joschka |
| Abstract: | International cooperation is at the core of multilateral climate policy. How is its effectiveness harmed by individual countries dropping out of the global mitigation effort? We develop a multisector structural trade model with emissions from production and a constant elasticity of fossil fuel supply function to simulate the consequences of unilateral withdrawals from the Paris Agreement. Taking into account both direct and leakage effects, we îond that a US withdrawal would eliminate more than a third of the world emissions reduction (31.8% direct effect and 6.4% leakage effect), while a potential Chinese withdrawal lowers the world emission reduction by 24.1% (11.9% direct effect and 12.2% leakage effect). The substantial leakage is primarily driven by technique effects induced by falling international fossil fuel prices. |
| Keywords: | Climate change,International trade,Carbon leakage,Fossil fuel supply |
| JEL: | F14 F18 Q56 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2236&r=ene |
| By: | Lou-Ann Guyomarc (PARIS SACLAY UNIVERSITY); Pierre Gonin (PARIS SACLAY UNIVERSITY); Yannick Perez (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Date: | 2022–10–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03815535&r=ene |
| By: | Fan, Huiying; Lu, Hongyu; Guin, Angshuman; Watkins, Kari E; Guensler, Randall |
| Abstract: | Many transit providers changed their schedules and route configurations during the COVID-19 pandemic, providing more frequent bus service on major routes and curtailing other routes, to reduce the risk of COVID-19 exposure. This research first assessed the changes in MARTA service configurations by reviewing the pre-pandemic vs. during-pandemic General Transit Feed Specification (GTFS) files. Energy use per route for a typical week was calculated for pre-pandemic, during-closure, and post-closure periods by integrating GTFS data with MOVES-Matrix transit energy and emission rates. MARTA automated passenger count (APC) data were appended to the routes, and the energy use per passenger mile was compared across routes for the three periods. The results showed that the coupled effect of shift in transit frequency and decrease in ridership from 2019 to 2020 increased route-level energy use for more than 87% of the routes and per-passenger mile energy use for more than 98% of the routes. In 2021, although MARTA service had largely returned to pre-pandemic conditions, ridership remained in an early stage of recovery. Total energy use decreased to about the pre-pandemic level, but per-passenger energy use remained higher than pre-pandemic for more than 91% of the routes. The results confirm that while total energy use is more closely associated with trip schedules and routes, per-passenger energy use depends on both trip service and ridership. The results also indicated a need for data-based transit planning, to help avoid inefficiency associated with over-provision of service or inadequate social distancing protection caused by under-provision of service. View the NCST Project Webpage |
| Keywords: | Engineering, Transit service, transit energy use, pandemic, pandemic recovery, transit ridership |
| Date: | 2022–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt2x1320p5&r=ene |
| By: | Nguyen, BH (Tasmanian School of Business & Economics, University of Tasmania); Zhang, Bo (Business School, Wenzhou University, Wenzhou, Zhejiang Province and Centre for Applied Macroeconomic Analysis (CAMA), Australian National University, Australia) |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:tas:wpaper:47522&r=ene |
| By: | Christoph Graf; Federico Quaglia; Frank A. Wolak |
| Abstract: | The negative demand shock due to the COVID-19 lockdown has reduced net demand for electricity -- system demand less amount of energy produced by intermittent renewables, hydroelectric units, and net imports -- that must be served by controllable generation units. Under normal demand conditions, introducing additional renewable generation capacity reduces net demand. Consequently, the lockdown can provide insights about electricity market performance with a large share of renewables. We find that although the lockdown reduced average day-ahead prices in Italy by 45%, re-dispatch costs increased by 73%, both relative to the average of the same magnitude for the same period in previous years. We estimate a deep-learning model using data from 2017--2019 and find that predicted re-dispatch costs during the lockdown period are only 26% higher than the same period in previous years. We argue that the difference between actual and predicted lockdown period re-dispatch costs is the result of increased opportunities for suppliers with controllable units to exercise market power in the re-dispatch market in these persistently low net demand conditions. Our results imply that without grid investments and other technologies to manage low net demand conditions, an increased share of intermittent renewables is likely to increase costs of maintaining a reliable grid. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2211.02196&r=ene |
| By: | Robert C. Schmidt; Moritz Drupp; Frikk Nesje; Hendrik Hoegen |
| Abstract: | Free-riding is widely perceived as a key obstacle for effective climate policy. In the game-theoretic literature on non-cooperative climate policy and on climate cooperation, the free-rider hypothesis is ubiquitous. Yet, the free-rider hypothesis has not been tested empirically in the climate policy context. With the help of a theoretical model, we demonstrate that if free-riding were the main driver of lax climate policies around the globe, then there should be a pronounced country-size effect: Countries with a larger share of the world's population should, all else equal, internalize more climate damages and thus set higher carbon prices. We use this theoretical prediction for testing the free-rider hypothesis empirically. Drawing on data on emission-weighted carbon prices from 2020, while controlling for a host of other potential explanatory variables of carbon pricing, we find that the free-rider hypothesis cannot be supported empirically, based on the criterion that we propose. Hence, other issues may be more important for explaining climate policy stringency or the lack thereof in many countries. |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2211.06209&r=ene |
| By: | Maximilien Germain (EDF R&D OSIRIS - Optimisation, Simulation, Risque et Statistiques pour les Marchés de l’Energie - EDF R&D - EDF R&D - EDF - EDF, EDF R&D - EDF R&D - EDF - EDF, EDF - EDF, LPSM (UMR_8001) - Laboratoire de Probabilités, Statistique et Modélisation - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité); Huyên Pham (LPSM (UMR_8001) - Laboratoire de Probabilités, Statistique et Modélisation - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, FiME Lab - Laboratoire de Finance des Marchés d'Energie - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CREST - EDF R&D - EDF R&D - EDF - EDF); Xavier Warin (EDF R&D OSIRIS - Optimisation, Simulation, Risque et Statistiques pour les Marchés de l’Energie - EDF R&D - EDF R&D - EDF - EDF, EDF R&D - EDF R&D - EDF - EDF, EDF - EDF, FiME Lab - Laboratoire de Finance des Marchés d'Energie - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CREST - EDF R&D - EDF R&D - EDF - EDF) |
| Abstract: | We consider the control of McKean-Vlasov dynamics (or mean-field control) with probabilistic state constraints. We rely on a level-set approach which provides a representation of the constrained problem in terms of an unconstrained one with exact penalization and running maximum or integral cost. The method is then extended to the common noise setting. Our work extends (Bokanowski, Picarelli, and Zidani, SIAM J. Control Optim. 54.5 (2016), pp. 2568–2593) and (Bokanowski, Picarelli, and Zidani, Appl. Math. Optim. 71 (2015), pp. 125–163) to a mean-field setting. The reformulation as an unconstrained problem is particularly suitable for the numerical resolution of the problem, that is achieved from an extension of a machine learning algorithm from (Carmona, Laurière, arXiv:1908.01613 to appear in Ann. Appl. Prob., 2019). A first application concerns the storage of renewable electricity in the presence of mean-field price impact and another one focuses on a mean-variance portfolio selection problem with probabilistic constraints on the wealth. We also illustrate our approach for a direct numerical resolution of the primal Markowitz continuous-time problem without relying on duality. |
| Keywords: | mean-field control,state constraints,neural networks |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03498263&r=ene |
| By: | Glavas, Dejan |
| Abstract: | We find that green bond issuers are more financially constrained. We use three measures of financial constraint, which are the FCP index, the SA index, and the Altman’s Z score. We test the link between green bond issuance and financial constraints using difference in means, regression analyses and a matching procedure. We finally document that these constraints increase after the first green bond issuance. |
| Date: | 2022–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:n4mdy&r=ene |
| By: | Brown, David P. (University of Alberta, Department of Economics); Eckert, Andrew (University of Alberta, Department of Economics); Silveira, Douglas (University of Alberta, Department of Economics) |
| Abstract: | In electricity markets, system reliability requires the instantaneous balancing of supply and demand. In addition to the wholesale electricity market, the procurement of various ancillary services is vital in achieving this objective. An important design feature is whether ancillary service markets clear simultaneously or sequential with wholesale markets. We propose a model to study the strategic implications of simultaneous versus sequential timing when firms compete in the ancillary services and wholesale electricity markets. Considering the case where ancillary services markets clear before wholesale markets, we demonstrate that when firms face increasing marginal cost curves, a strategic incentive to reduce ancillary services output and, consequently, lower their marginal costs in the wholesale market arises. We employ data from Alberta’s electricity markets to demonstrate the quantitative implications of our findings. Our numerical results show that the strategic commitment effect has a small impact on wholesale market outcomes but a large impact on the equilibrium in the ancillary services market, elevating the market-clearing price. |
| Keywords: | ancillary services; electricity; market power; strategic commitment |
| JEL: | L13 L50 L94 Q40 |
| Date: | 2022–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2022_011&r=ene |
| By: | Leroutier, Marion; Quirion, Philippe |
| Abstract: | Tackling car emissions in urban areas: Shift, Avoid, Improve |
| Date: | 2022–07–23 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:f5kmd&r=ene |
| By: | Claudia Persico; Dave E. Marcotte |
| Abstract: | We conduct the first-ever large-scale study of the relationship between air pollution and suicide using detailed cause of death data from all death certificates in the U.S. between 2003 and 2010. Using wind direction as an instrument for daily pollution exposure, we find that a 1 μg/m3 increase in daily PM2.5 is associated with a 0.49% increase in daily suicides and 0.171 more suicide-related hospitalizations (a 50% increase). Estimates using 2SLS are larger and more robust, suggesting a bias towards zero arising from measurement error. Event study estimates further illustrate that contemporaneous pollution exposure matters more than exposure to pollution in previous weeks. |
| JEL: | I10 Q52 Q53 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30626&r=ene |
| By: | Viktor Stojkoski; Philipp Koch; Cesar A. Hidalgo; |
| Abstract: | To achieve inclusive green growth, countries need to consider a multiplicity of economic, social, and environmental factors. These are often captured by metrics of economic complexity derived from the geography of trade, thus missing key information on innovative activities. To bridge this gap, we combine trade data with data on patent applications and research publications to build models that significantly and robustly improve the ability of economic complexity metrics to explain international variations in inclusive green growth. We show that measures of complexity built on trade and patent data combine to explain future economic growth and income inequality and that countries that score high in all three metrics tend to exhibit lower emission intensities. These findings illustrate how the geography of trade, technology, and research combine to explain inclusive green growth. nations. |
| Keywords: | economic complexity, inclusive green growth, complex systems |
| JEL: | F14 F43 O12 O15 O47 Q56 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2228&r=ene |
| By: | Alvaro J. Riascos Villegas; Julian Chitiva; Carlos Salazar |
| Abstract: | En este trabajo introducimos una metodología de generación de alertas de potenciales prácticas anticompetitivas en el mercado mayorista de electricidad colombiano. La metodología se compone de dos partes: (1) Con base en la disponibilidad declarada de los agentes, se identifican aquellos que potencialmente pueden tener un impacto alto en el precio de bolsa (i.e., pivotales en el sentido del índice de oferta residual - IOR) y (2) Usando métodos de aprendizaje de máquinas se identifican las ofertas de energía (i.e., precios) de aquellos agentes pivotales que, de acuerdo al estado del mercado y su historia (i.e., oferta pasadas, recursos hídricos, tecnología de generación, etc.) se podrían considerar atípicos o anómalos. Con base en estos dos indicadores se generan alertas de potenciales prácticas anticompetitivas. Reportamos los resultados de la aplicación de esta metodología al mercado mayorista colombiano en el período Agosto 16, 2018 - Julio 30, 2019. Una característica importante de esta metodología es que puede ser aplicada con la información disponible del operador del sistema, 24 horas antes de que se observen los resultados del mercado y generando alertas ex-ante a la realización de los eventos. Esta posibilidad de generar alertas casi en tiempo real es aun más importante de cara al nuevo mercado intradiario que próximamente entraría en rigor en el sistema eléctrico colombiano. **** We introduce a methodology for generating alerts of potential anti-competitive practices in the Colombian wholesale electricity market. The methodology is made up of two parts: (1) Based on the declared availability of the agents, those that can potentially have a high impact on the stock price are identified (i.e., pivotal in the sense of the residual supply index - IOR ) and (2) Using machine learning methods, the energy offers (i.e., prices) of those pivotal agents are identified that, according to the state of the market and its history (i.e., past offers, water resources, generation technology, etc.) could be considered atypical or anomalous. Based on these two indicators, alerts of potential anti-competitive practices are generated. We report the results of the application of this methodology to the Colombian wholesale market in the period August 16, 2018 - July 30, 2019. An important characteristic of this methodology is that it can be applied with the information available from the system operator, 24 hours before that the results of the market are observed and generating alerts ex ante to the realization of the events. This possibility of generating alerts almost in real time is even more important in view of the new intra-day market that will soon come into force in the Colombian electricity system. |
| Keywords: | Pool Electricity Markets, Anomaly Detection, Market Power, Machine Learning, Pool Electricity Markets, Anomaly Detection, Market Power, Machine Learning |
| JEL: | H62 H63 J23 J31 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:1217&r=ene |
| By: | Dionne, Georges (HEC Montreal, Canada Research Chair in Risk Management); El Hraiki, Rayane (HEC Montreal, Canada Research Chair in Risk Management); Mnasri, Mohamed (HEC Montreal, Canada Research Chair in Risk Management) |
| Abstract: | We study the intensity of joint hedging of oil and gas prices by US petroleum firms. We aim to explain the rationale for and find the determinants of joint hedging, as well as its impact on firm market value, performance, and riskiness. Joint hedging that takes into account the interdependence between risks should have a positive impact on firm value in the presence of multiple risks. We verify this theory in an innovative way, by testing the effects of hedging oil and gas prices simultaneously and by using an instrumental variable framework to attenuate the problem of endogeneity between firm value and risk management. We find evidence of higher market value, higher performance, and lower riskiness for firms with a high propensity to jointly hedge their oil and gas production to a greater extent. We show that joint hedging dominates single-commodity hedging. |
| Keywords: | Joint hedging; enterprise risk management; oil price; gas price; hedging intensity; bivariate probit; causality; firm value |
| JEL: | C13 C23 C25 G23 G32 |
| Date: | 2022–08–23 |
| URL: | http://d.repec.org/n?u=RePEc:ris:crcrmw:2022_004&r=ene |
| By: | Conall Heussaff; Simone Tagliapietra; Georg Zachmann; Jeromin Zettelmeyer |
| Abstract: | Action to intervene in the gas and electricity wholesale markets is also being taken at European Union level, which is what we analyse in this paper. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bre:polbrf:node_8331&r=ene |
| By: | Isaac K. Ofori (University of Insubria, Varese, Italy); Emmanuel Y. Gbolonyo (University of Cape Town, South Africa); Nathanael Ojong (York University,Toronto, Canada) |
| Abstract: | Despite the growing number of empirical studies on foreign direct investment (FDI) and energy efficiency (EE) as they relate to green growth, there remains an empirical research gap with respect to whether EE can engender positive synergy with FDI to foster inclusive green growth (IGG) in Africa. Also, little has been done to show the IGG gains from improving EE in both the short and long terms. Thus, this paper aims to investigate whether there exists a relevant synergy between EE and FDI in fostering IGG in Africa by using macrodata for 23 countries from 2000 to 2020. According to our findings, which are based on dynamic GMM estimator, FDI hampers IGG in Africa, while EE fosters IGG. Notably, in the presence of EE, the environmental-quality-deterioration effect of FDI is reduced. Additional evidence by way of threshold analysis indicates that improving EE in Africa generates positive sustainable development gains in both the short and long terms. This study suggests that a country’s drive to attract FDI needs to be accompanied by appropriate policy options to promote energy efficiency. |
| Keywords: | Africa; Energy efficiency; FDI; Inclusive Green Growth; Greenhouse Gases; Environmental Sustainability |
| JEL: | F2 F21 O11 O44 O55 Q01 Q43 Q56 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:22/089&r=ene |
| By: | Naef, Alain |
| Abstract: | Economists agree that carbon taxes are the most effective solution for climate change mitigation. But where do fossil fuel companies stand on carbon taxes? I analyse how the 100 largest oil and gas companies communicate on carbon taxes. Surprisingly, I find that 54% of companies who have a policy on carbon taxes support them (78% for the 50 largest). This is puzzling as an effective carbon tax should reduce revenues and reserve value of fossil fuel companies. I present a conceptual trilemma model showing that fossil fuel companies’ existence is threatened by a carbon tax. To understand this paradox, I offer non-mutually exclusive reasons why fossil fuel companies might support carbon taxes. Oil and gas companies could use a carbon tax to get rid of the competition from coal, create a level playing field and remove regulatory uncertainty. Or They think that these taxes will not affect them because demand for oil and gas is inelastic or that international coordination will fail and lead to leakages. Finally, it could be that this is simply a communication exercise and that a carbon tax helps them shift the responsibility from fossil fuel companies to customers, voters and elected officials. |
| Date: | 2022–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:k84ru&r=ene |
| By: | Cohen, Shira; Kadach, Igor; Ormazabal, Gaizka; Reichelstein, Stefan |
| Abstract: | This paper examines the reliance on ESG metrics in executive compensation contracts. In our sample of international publicly traded firms, a rapidly growing fraction incorporate ESG metrics in the compensation schemes of their top executives. Our analysis links the reliance on these metrics to firm fundamentals, the geographic location of firms, as well as the influence of institutional shareholders. Our findings also suggest that the adoption of ESG variables in managerial performance measures is accompanied by improvements in ESG performance and meaningful changes in the compensation of executives. |
| Keywords: | ESG metrics,Executive compensation,Institutional ownership |
| JEL: | M12 M41 Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:22051&r=ene |
| By: | Zhaoyingzi Dong; Siqi Sun; Pierre-Alexandre Balland; Weiwen Zhang |
| Abstract: | Accelerating the development of green technologies is essential to achieve a green transition, but green technologies tend to be more radical and complex. It means that they require significant efforts to scale and we need to understand all possible levers of green technological change. In this paper, we investigate whether environmental regulation can provide opportunities for path-breakthrough and complex technology diversification during the green transition process. The analysis is based on patenting activities in Chinese cities from 2003 to 2016. Our results show that cities with tighter environmental regulations are more likely to branch into new green technology spaces. In addition, environmental regulations help cities enter less related and more complex green domains. This study provides significant policy implications for the green transition literature. |
| Keywords: | Environmental regulation; Technology diversification; Green innovation; Relatedness; Complexity |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2226&r=ene |
| By: | Gruhl, Henri; Volkhausen, Nicolas; Pestel, Nico; aus dem Moore, Nils |
| Abstract: | This paper studies whether people's perception of improvements in local air quality are reflected in the housing market based on comprehensive data on real estate prices from Germany. Using a quasi-experimental research design, we exploit the staggered introduction of Low Emission Zones (LEZs) across German cities, lowering urban air pollution by limiting the access of high-emitting vehicles. We find that residents value the presence of LEZs, reflected by roughly 2% higher apartment rents. Estimates are similar, albeit smaller in magnitude, for properties for purchase. The results are driven by earlier LEZ implementations and LEZs in areas with relatively higher pre-intervention pollution levels. |
| Keywords: | Low emission zone,policy evaluation,house prices,externalities |
| JEL: | I18 R21 Q51 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:977&r=ene |
| By: | Belloc, Ignacio (University of Zaragoza); Gimenez-Nadal, J. Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza) |
| Abstract: | Climate change and global warming are problems that currently affect the daily lives of the world population and, to the extent that climate projections are less than optimistic, understanding how individuals respond to extreme weather conditions is essential for the correct design of public policies. One of the human behaviors that can be most affected by extreme weather conditions is that of personal travel, including commuting, an activity that is done daily by millions of workers worldwide. Within this framework, we estimate the effects of weather conditions on daily commuting and travel choices, by examining daily variations in weather conditions within counties in the US. To that end, we use timeuse diary information from the American Time Use Survey 2003-2019 and daily weather information at the county level for a sample of US workers, finding significant relationships between daily weather conditions, commuting time, and travel choices. Rainy days, high temperatures, and snowfall are associated with a statistically significant lower proportion of commuting time done by public transit and walking, whereas the relationship is found to be positive for the proportion of commuting time by car. With additional analysis, we find that the greatest substitution from greener modes of transport towards the private car is concentrated on days with greater precipitation and higher temperatures. Finally, our results suggest adaptation to higher temperatures in warmer places. |
| Keywords: | weather, commuting, green mobility, workers, American Time Use Survey |
| JEL: | R4 J22 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15661&r=ene |