nep-ene New Economics Papers
on Energy Economics
Issue of 2022‒12‒12
53 papers chosen by
Roger Fouquet
London School of Economics

  1. Estimating the CO2 emission and revenue effects of carbon pricing: New evidence from a large cross-country dataset By Filippo Maria D’Arcangelo; Mauro Pisu; Kurt van Dender; Anasuya Raj
  2. In pursuit of progressive and effective climate policies: comparing an air travel carbon tax and a frequent flyer levy By Fouquet, Roger; O’Garra, Tanya
  3. Banning super short-haul flights: Environmental evidence or political turbulence? By Frédéric Dobruszkes; Giulio Mattioli; Laurette Mathieu
  4. A nation-wide experiment: fuel tax cuts and almost free public transport for three months in Germany -- Report 5 Insights into four months of mobility tracking By Lennart Adenaw; David Ziegler; Nico Nachtigall; Felix Gotzler; Allister Loder; Markus B. Siewert; Markus Lienkamp; Klaus Bogenberger
  5. Framework for energy transformation By Khuc, Quy Van; Tran, Phuong-Mai
  6. Procure, Bank, Release: Carbon Removal Certificate Reserves to Manage Carbon Prices on the Path to Net-Zero By Rickels, Wilfried; Rothenstein, Roland; Schenuit, Felix; Fridahl, Mathias
  7. Environmentally-adjusted productivity measures for the UK By Matthew Agarwala; Josh Martin
  8. A Comparative Analysis of Energy Subsidy in the MENA Region By Boudekhdekh, Karim
  10. Carbon emissions in China's thermal electricity and heating industry: an input-output structural decomposition analysis By Ling, Yantao; Xia, Senmao; Cao, Mengqiu; He, Kerun; Lim, Ming K.; Sukumar, Arun; Yi, Huiyong; Qian, Xiaoduo
  11. Spatial trade-offs in national land-based wind power production in times of biodiversity and climate crises By Kristine Grimsrud; Cathrine Hagem; Kristina Haaskjold; Henrik Lindhjem; Megan Nowell
  12. How large is the energy savings potential in the UK? By Fetzer, Thiemo; Gazze, Ludovica; Bishop, Meena
  14. The impact of access to credit on energy efficiency By Jun Zhou; Zhichao Yin; Pengpeng Yue
  15. Energiekrise: Sinkende Sparmöglichkeiten bis in die Mittelschicht By Niehues, Judith; Gensheimer, Tim; Diermeier, Matthias; Borgstedt, Silke
  16. Directed technical change and the resource curse By Mads Greaker; Tom-Reiel Heggedal; Knut Einar Rosendahl
  17. The Determinants of Crude Oil Prices: Evidence from ARDL and Nonlinear ARDL Approaches By Leila Ben Salem; Ridha Nouira; Khaled Jeguirim; Christophe Rault
  18. Who’s fit for the low-carbon transition? Emerging skills and wage gaps in job ad data By Saussay, Aurelien; Sato, Misato; Vona, Francesco; O’Kane, Layla
  19. Revealing Robust Oil and Gas Company Macro-Strategies using Deep Multi-Agent Reinforcement Learning By Dylan Radovic; Lucas Kruitwagen; Christian Schroeder de Witt; Ben Caldecott; Shane Tomlinson; Mark Workman
  20. Influence of Economic Decoupling in assessing carbon budget quotas for the European Union By Ilaria Perissi; Aled Jones
  21. Leviers techniques pour l'atténuation des émissions de gaz à effet de serre du secteur agricole en Nouvelle-Aquitaine By Nosra Ben Fradj; Laure Bamière
  22. Leviers techniques pour l'atténuation des émissions de gaz à effet de serre du secteur agricole en IdF By Nosra Ben Fradj; Laure Bamière
  23. Leviers techniques pour l'atténuation des émissions de gaz à effet de serre du secteur agricole en PACA By Nosra Ben Fradj; Laure Bamière
  24. Leviers techniques pour l'atténuation des émissions de gaz à effet de serre du secteur agricole en Normandie By Nosra Ben Fradj; Laure Bamière
  25. Why economists should learn more from nature? By Khuc, Quy Van
  26. How to 'Trump' the energy market: evidence from the WTI-Brent spread By Catalin Dragomirescu-Gaina; Dionisis Philippas; Stéphane Goutte
  27. Disamenity or Premium: Do Electricity Transmission Lines Affect Farmland Values and Housing Prices Differently? By Qinan Lu; Nieyan Cheng; Wendong Zhang; Pengfei Liu
  28. The economic psychology of climate change: An experimental study on risk preferences and cooperation By Gruener, Sven
  29. Heterogeneous household responses to energy price shocks By Gert Peersman; Joris Wauters
  30. Acción climática con igualdad de género: hacia una recuperación transformadora para la sostenibilidad y la igualdad de género en América Latina y el Caribe By Miranda, Francisca; Castañeda, Itzá; Román, Pilar; Velázquez, Margarita
  31. Hacia la medición de la electromovilidad en el comercio internacional: tablero interactivo en línea By Ronzheimer, Ira Nadine; Durán Lima, José Elías; Budnevich, Cristóbal; Gomies, Matthew
  32. Cournot vs. Bertrand competition in the international transport market with environmental standards By Marie-Laure Cabon-Dhersin
  33. The relationship between Competition, Tourism and Sustainable Development: three interdependent topics By Fotis, Panagiotis; Korre, Maria
  34. FDI and Environmental Sustainability Nexus: Testing the Pollution Haven Hypothesis in the Presence of Regulatory Quality By Yakubu, Ibrahim Nandom; Musah, Alhassan
  35. Mapping the indirect employment of hard coal mining: a case study of Upper Silesia, Poland By Jan Frankowski; Joanna Mazurkiewicz; Jakub Sokołowski
  36. Power Sector: Effective Regulation not Regulatory Burden By Afia Malik
  37. Climate Change and Double Materiality in a Micro- and Macroprudential Context By Kevin J. Stiroh
  38. Environmental social efficiency By Khuc, Quy Van
  39. Ecosurplus Index By Khuc, Quy Van
  40. Food-Groundwater-Energy nexus in Indian agriculture: Empirical evidence from Uttar Pradesh, India By Kishore, Prabhat; Singh, Dharam R.; Srivastava, Shivendra; Kumar, Arun; Prakash
  41. International Climate Aid and Trade By Basak Bayramoglu; Jean-François Jacques; Clément Nedoncelle; Lucille Neumann-Noel
  42. Emissions trading with transaction costs By Baudry, Marc; Faure, Anouk; Quemin, Simon
  43. Achieving Social Optimality for Energy Communities via Dynamic NEM Pricing By Ahmed S. Alahmed; Lang Tong
  44. Air Pollution and Student Achievement: Evidence from Africa By Singh, Tejendra Pratap; Mtenga, Erica
  45. The integrated systems approach framework for environmental pollution and climate change By Khuc, Quy Van
  46. Mineral Import Demand and Clean Energy Transitions in the Top Mineral Importing Countries By Islam, Monirul; Sohag, Kazi; Alam, Md. Mahmudul
  47. The Price Responsiveness of Shale Producers: Evidence from Micro Data By Knut Are Aastveit; Hilde C. Bjørnland; Thomas S. Gundersen
  48. The role of the IMF in addressing climate change risks By Committeri, Marco; Brüggemann, Axel; Kosterink, Patrick; Reininger, Thomas; Stevens, Luc; Vonessen, Benjamin; Zaghini, Andrea; Garrido, Isabel; Van Meensel, Lena; Strašuna, Lija; Tiililä, Nea; Weidner, Stephanie; Wilbert, Lucia
  49. Accelerating rural energy access for agricultural transformation: contribution of the CGIAR Research Program on Water, Land and Ecosystems to transforming food, land and water systems in a climate crisis By Magalhaes, M.; Ringler, C.; Verma, Shilp; Schmitter, Petra
  50. Green Finance: Perspectives in Sustainable Finance Instruments and ESG Activities By M S, Navaneeth; Siddiqui, Ismail
  51. Evaluating the Effects of ICT Core Elements on CO2 Emissions: Recent Evidence from OECD Countries By Briglauer, Wolfgang; Köppl-Turyna, Monika; Schwarzbauer, Wolfgang
  52. Simulaciones del precio social del carbono en el sector de la infraestructura en países seleccionados de América Latina By Vicuña, Sebastián; Marín, Carlos; Pica, Andrés; Rivera, Antonio
  53. Small and Medium Sized European Firms and Energy Efficiency Measures: A Probit Analysis By Guglielmo Maria Caporale; Cristiana Donati; Nicola Spagnolo

  1. By: Filippo Maria D’Arcangelo; Mauro Pisu; Kurt van Dender; Anasuya Raj
    Abstract: This paper estimates the long-run elasticity of emissions and carbon-related government revenues to carbon pricing. It is based on the OECD Effective Carbon Rates database, the most comprehensive cross-country longitudinal database on direct and indirect carbon pricing. Econometric estimates suggest that a EUR 10 increase in carbon pricing decreases CO2 emissions from fossil fuels by 3.7% on average in the long term. In such a scenario, carbon-related government revenues would triple at global level, though over time they are expected to dwindle as additional increases in carbon pricing result in further reductions in emissions. Broadening carbon pricing to currently unpriced emissions contributes to two thirds of the effects on emissions and revenues. At the country level, emissions and government revenues responses differ depending on countries’ sectoral structure and fuel sources. Dynamic simulations based on these estimates reveal that even large effective carbon rates (about EUR 1000 per tonne by late 2030s) will not suffice to meet net-zero emission targets. A sensitivity analysis shows that this result is robust to a large range of elasticity estimates. Reaching net zero then calls for complementary policies aiming at broadening and raising carbon prices, and drastically increasing the substitution of clean energy sources for fossil fuels through innovation and reallocation.
    Keywords: carbon price elasticity, carbon-related revenues, Effective carbon rates, mitigation policy
    JEL: C23 H23 Q41 Q48 Q54
    Date: 2022–11–21
  2. By: Fouquet, Roger; O’Garra, Tanya
    Abstract: This paper investigates the trade-offs between progressivity and effectiveness for a carbon tax versus an ‘excessive consumption’ levy. To do this, we compare the distribution of consumer welfare impacts and environmental effectiveness of an air travel carbon tax and a frequent flyer levy. Results show that both policies have the potential to achieve substantial carbon mitigation with minimal impacts on consumer welfare. Nevertheless, compared with a carbon tax, a frequent flyer levy is more progressive and effective at reducing emissions – thus, there is no trade-off between progressivity and effectiveness by using an excessive consumption levy to mitigate air travel emissions. Furthermore, considering the pronounced growth in demand projected for air travel over the next 30 years, results show the frequent flyer levy will remain more progressive and effective over time. Although further research is needed to assess the trade-offs on the supply-side (e.g., protection of regular customers, dynamic efficiency) and related to implementation (e.g., data privacy, the role for revenue recycling), such an excessive consumption levy has the potential to be an equitable, effective and politically acceptable environmental policy for curbing carbon dioxide emissions. This is relevant not only for air travel but for other forms of consumption in which the affluent are responsible for a large share of demand and associated carbon emissions.
    Keywords: carbon tax; frequent flyer levy; emission reductions; consumer welfare; progressivity; Grantham Research Institute on Climate Change and the Environment; and the ESRC Centre for Climate Change Economics and Policy (CCCEP) (ref. ES/R009708/1); Elsevier deal
    JEL: Q54 Q58 R41
    Date: 2022–12–01
  3. By: Frédéric Dobruszkes; Giulio Mattioli; Laurette Mathieu
    Abstract: Several countries have considered banning or even decided to ban or tax super short-haul flights, arguing that the availability of rail alternatives makes them unnecessary. Such policies result from the need for governments to be seen as acting to mitigate climate change and scholars favouring energy (climate) efficiency perspectives over the absolute amount of fuel burnt (greenhouse gas emissions emitted). Yet climate change is due to absolute emissions, and it is a fact that the longer a flight is, the greater the amount of fuel is burnt (emissions). Considering all departing flights from 31 European countries, our study found that flights shorter than 500 km account for 27.9% of departures but 5.9% of fuel burnt. In contrast, flights longer than 4,000 km account for 6.2% of departures but 47.0% of fuel burnt, although with significant variation across countries. We conclude that targeting shorter flights (which often exist to alleviate physical obstacles imposed by physical geography) will contribute little to reducing the impact of aviation on climate, and that policy initiatives that target longer flights are urgently needed.
    Keywords: Air transport; Aviation; Climate change; Greenhouse gas emissions; Short-haul flights
    Date: 2022–11–01
  4. By: Lennart Adenaw; David Ziegler; Nico Nachtigall; Felix Gotzler; Allister Loder; Markus B. Siewert; Markus Lienkamp; Klaus Bogenberger
    Abstract: In spring 2022, the German federal government agreed on a set of measures that aim at reducing households' financial burden resulting from a recent price increase, especially in energy and mobility. These measures include among others, a nation-wide public transport ticket for 9 EUR per month and a fuel tax cut that reduces fuel prices by more than 15%. In transportation research this is an almost unprecedented behavioral experiment. It allows to study not only behavioral responses in mode choice and induced demand but also to assess the effectiveness of transport policy instruments. We observe this natural experiment with a three-wave survey and an app-based travel diary on a sample of hundreds of participants as well as an analysis of traffic counts. In this fifth report, we present first analyses of the recorded tracking data. 910 participants completed the tracking until September, 30th. First, an overview over the socio-demographic characteristics of the participants within our tracking sample is given. We observe an adequate representation of female and male participants, a slight over-representation of young participants, and an income distribution similar to the one known from the "Mobilit\"at in Deutschland" survey. Most participants of the tracking study live in Munich, Germany. General transportation statistics are derived from the data for all phases of the natural experiment - prior, during, and after the 9 EUR-Ticket - to assess potential changes in the participants' travel behavior on an aggregated level. A significant impact of the 9 EUR-Ticket on modal shares can be seen. An analysis of the participants' mobility behavior considering trip purposes, age, and income sheds light on how the 9 EUR-Ticket impacts different social groups and activities. We find that age, income, and trip purpose significantly influence the impact of the 9 EUR-Ticket on the observed modal split.
    Date: 2022–11
  5. By: Khuc, Quy Van; Tran, Phuong-Mai
    Abstract: We propose and adopt an energy saving conceptual framework which contains three parts: the energy conversion system, the socio-ecological system, and global environmental changes. The framework shapes our research in several ways. First, it recognises the role of young people (students) as an active player in energy consumption and carbon emissions. In years to come, they will be major decision-makers in energy use; hence, their choice of action would have a long-term effect. For example, they might decide to use energy-efficient appliances in their houses, or as a business owner, they might opt for eco-friendly office design and issue ‘green office’ guideline. If these were the case, energy consumption would be reduced significantly. For a problem that requires such complicated and time-consuming efforts as global warming to be addressed, the participation of young people would be the key to success. This enables us to target young people and investigate their responses to global environmental issues in general and climate change-related policies in particular. Second, it draws the attention to the role of education in raising environmental awareness which potentially leads to pro-environmental behaviours, especially of young people, in the long term (Van Khuc, 2022a, 2022b, 2022d). Based on these characteristics, the framework also supports the construction of young people decision models in the following sections.
    Date: 2022–09–17
  6. By: Rickels, Wilfried; Rothenstein, Roland; Schenuit, Felix; Fridahl, Mathias
    Abstract: The European Union cap-and-trade emissions trading system (EU ETS) faces two challenges in the context of the European Green Deal. First, to meet the Paris temperature target, emissions in the energy and industrial sectors must fall to net-zero and then even become net-negative. Second, there is a concern that excessive CO2 price spikes and volatility on this path will jeopardize the political acceptance and support for emissions trading as a climate policy instrument. Conditional supply of carbon removal credits (CRCs) to support dynamic carbon price caps would make it possible to stabilize the market in the transition from positive to net-negative emissions trading while keeping the net-emissions path unchanged. CRCs would be assigned for carbon removal achieved for example with methods like Direct Air Carbon Capture and Storage or Bioenergy with Carbon Capture and Storage and would be used by companies under the EU ETS to compensate for their emissions. However, we suggest that there would be no direct exchange between emitting companies under the EU ETS and carbon removal companies, i.e., the demand and supply side of CRCs, during an initial phase. Instead, we suggest assigning an institutional mandate to for example a carbon central bank (CCB) to organize the supply of CRCs. Under this mandate, carbon removal would be procured, would be translated into a corresponding number of CRCs, and a fraction of it could be auctioned to the market at a later point in time, provided that market prices exceed a certain (dynamic) price cap.
    Keywords: European emissions trading,Carbon pricing,Carbon dioxide removal methods,EU climate policy
    Date: 2022
  7. By: Matthew Agarwala (Bennett Institute for Public Policy, Unviersity of Cambridge); Josh Martin (The Bank of England, and ESCoE)
    Keywords: productivity, environmental accounting, national accounting, greenhouse gas emissions
    Date: 2022–11
  8. By: Boudekhdekh, Karim
    Abstract: This paper focuses on analyzing energy prices subsidies distribution in the MENA region among its seven components, according to the products that benefit from subsidized prices, and by per capita. As a nominal average of the years 2013, 2015, and 2017, both Iran and KSA had the higher nominal pre-tax subsidy averages estimated to $52.11 and $45.54 billion respectively, and also had higher post-tax subsidy averages estimated to $118.55 and $114.81 respectively. Global warming and local air pollution were the most important components after the pre-tax subsidies component in all MENA region countries. The “Congestion” component came after the level of the two environmental components averages in oilexporting countries, while the “accidents” component in almost all the oil-importing countries came after the level of the two environmental components averages. By products, petroleum products were the main products that benefited from energy prices subsidies in almost all MENA countries. The reform process must take into account the specifics of each country with regard to the details of energy subsidies at its level, as energy subsidies vary from one country to another, whether in terms of its value, the weight of its components, and the subsidy share of each energy products.
    Keywords: energy; energy subsidy; economic policy; MENA region.
    JEL: E62 H20 Q40 Q43
    Date: 2022
  9. By: naryono, endang (STIE PASIM SUKABUMI)
    Abstract: Rising world fuel prices have become a serious problem for Indonesia, namely the increase in the burden of fuel subsidies for the community which has been enjoyed by hundreds of millions of Indonesians for decades. national. The discourse of increasing fuel is not as easy as turning the palm of the hand, but it will have a tremendous impact on the lower middle class, namely an increase in the rate of inflation. Rising inflation rates will automatically reduce people's purchasing power due to a progressive increase in prices, of course this will be a problem for the lower middle class after the covid-19 pandemic for 3 years where the economic sluggishness is still felt as seen from the contraction in economic growth that has not yet reached the target set. has been determined and if it is followed by an increase in fuel prices, it is certain that a macroeconomic contraction will lead to a decrease in economic growth, high inflation rates, unemployment and the most frightening thing is an increase in the poverty rate. Is it true that the increase in fuel oil is the best solution for the Indonesian people?
    Date: 2022–09–04
  10. By: Ling, Yantao; Xia, Senmao; Cao, Mengqiu; He, Kerun; Lim, Ming K.; Sukumar, Arun; Yi, Huiyong; Qian, Xiaoduo
    Abstract: CO2 emissions from China accounted for 27 per cent of global emisions in 2019. More than one third of China's CO2 emissions come from the thermal electricity and heating sector. Unfortunately, this area has received limited academic attention. This research aims to find the key drivers of CO2 emissions in the thermal electricity and heating sector, as well as investigating how energy policies affect those drivers. We use data from 2007 to 2018 to decompose the drivers of CO2 emissions into four types, namely: energy structure; energy intensity; input-output structure; and the demand for electricity and heating. We find that the demand for electricity and heating is the main driver of the increase in CO2 emissions, and energy intensity has a slight effect on increasing carbon emissions. Improving the input-output structure can significantly help to reduce CO2 emissions, but optimising the energy structure only has a limited influence. This study complements the existing literature and finds that the continuous upgrading of power generation technology is less effective at reducing emissions and needs to be accompanied by the market reform of thermal power prices. Second, this study extends the research on CO2 emissions and enriches the application of the IO-SDA method. In terms of policy implications, we suggest that energy policies should be more flexible and adaptive to the varying socio-economic conditions in different cities and provinces in China. Accelerating the market-oriented reforms with regard to electricity pricing is also important if the benefits of technology upgrading and innovation are to be realised.
    Keywords: Carbon dioxide reduction; China; Decomposition analysis; Electricity; Energy intensity; Energy structure; EP/R035148/1; 51808392
    JEL: R14 J01
    Date: 2021–12–20
  11. By: Kristine Grimsrud; Cathrine Hagem (Statistics Norway); Kristina Haaskjold; Henrik Lindhjem; Megan Nowell
    Abstract: Energy generated from land-based wind power is expected to play a crucial role in the decarbonisation of the economy. With the looming biodiversity and nature crises, spatial allocation of wind power cannot, however, any longer be considered solely a trade-off against local disamenity costs. Emphasis should also be put on wider environmental impacts, especially if these challenge the sustainability of the whole renewable energy transition. We suggest a modelling system for spatial allocation of wind power plants (WPPs) by combining an energy system model with a comprehensive GIS analysis of WPP sites and surrounding viewscapes. The modelling approach integrates monetary cost estimates of local disamenity and loss of carbon sequestration, and impacts on wilderness and biodiversity implemented as sustainability constraints on the model. Simulating scenarios for the Norwegian energy system towards 2050, we find that the southern part of Norway is the most favourable region for wind power siting when only the energy system surplus is considered. However, when gradually adding local disamenity costs (and to a lesser extent carbon costs) and the sustainability constraints, the more beneficial siting in the northern part of Norway become. We find that the sustainability constraints have the largest impact on the spatial distribution of WPPs, but the monetised costs of satisfying them are shown to be modest. Overall, results show that there is a trade-off between local disamenities and loss of biodiversity and wilderness. Siting wind power plants outside the visual proximity of households yield negative consequences for biodiversity and wilderness.
    Keywords: wind power, spatial analysis, energy system model, environmental costs, disamenity costs
    JEL: C61 D62 Q24 Q42 Q48 Q51 Q57 Q58
    Date: 2022–09
  12. By: Fetzer, Thiemo (University of Warwick); Gazze, Ludovica (University of Warwick); Bishop, Meena (University of Warwick)
    Abstract: Which households will be most affected by the energy price shock? How large are the energy, financial, and environmental benefits of improved energy efficiency of the British residential building stock? How do policies or interventions in price setting in energy markets affect these incentives? We develop a measurement and ex-ante modelling approach using granular property-level micro data representing around 50% of the English and Welsh building stock. This allows us to quantify the likely impact of recent energy price shocks on energy bills and how these bills would look like if energy savings measures were implemented. We find, on average, that the energy price shock acts as a form of progressive taxation hitting better-off regions more than poorer ones, in absolute terms. We estimate that on aggregate, 30% of energy consumption could be saved if buildings were upgraded to their highest energy efficiency standard. At market prices, these savings range between GBP 10 to 20 billion pounds per year with the highest energy savings largely concentrated in the wealthiest parts of the UK However, current policies weaken incentives for households to invest in energy efficiency upgrades. Current policies, such as the energy price cap, appears to be very regressive. Alternative, more targeted policies, are cheaper, easily implementable and could align incentives better.
    Keywords: Energy Crisis ; Economic hardship ; Populism
    Date: 2022
  13. 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.
    Date: 2022–11–13
  14. By: Jun Zhou; Zhichao Yin; Pengpeng Yue
    Abstract: This paper proposes a brand-new measure of energy efficiency at household level and explores how it is affected by access to credit. We calculate the energy and carbon intensity of the related sectors, which experience a substantial decline from 2005 to 2019. Although there is still high inequality in energy use and carbon emissions among Chinese households, the energy efficiency appears to be improved in long run. Our research further maps the relationship between financial market and energy. The results suggest that broadened access to credit encourages households to improve energy efficiency, with higher energy use and carbon emission.
    Date: 2022–11
  15. By: Niehues, Judith; Gensheimer, Tim; Diermeier, Matthias; Borgstedt, Silke
    Abstract: Während im Jahr 2020 noch 70 Prozent der Deutschen regelmäßig etwas (an)sparen konnten, liegt dieser Anteil aktuell nur mehr bei 50 Prozent. Zudem legen Sparende heute mehrheitlich deutlich weniger Geld zur Seite als im Vorjahr. Doch nicht nur die Sparmöglichkeiten gehen zurück: Bereits jetzt haben 61 Prozent ebenso ihre Ausgaben aufgrund der gestiegenen Energiepreise stark oder sehr stark reduziert. Auch die Mitte der Gesellschaft gerät zunehmend unter Druck.
    Date: 2022
  16. By: Mads Greaker; Tom-Reiel Heggedal; Knut Einar Rosendahl (Statistics Norway)
    Abstract: The "resource curse" is a potential threat to all countries relying on export income from abundant natural resources such as fossil fuels. The early literature hypothesized that easily accessible natural resources would lead to lack of technological progress. In this article we instead propose that abundance of fossil fuels can lead to the wrong type of technological progress. In order to inquire into our research question, we build a model of a small, open economy having specialized in export of fossil fuels. R&D in fossil fuel extraction technology competes with R&D in clean energy technologies. Moreover, technological progress is path dependent as current R&D within a technology type depends on past R&D within the same type. Finally, global climate policy may reduce the future value of fossil fuel export. We find that global climate policy may either lead to a resource curse or help the country escaping a potential resource curse. The ripeness of the clean energy technologies is essential for the outcomes: If the clean technology level is not too far beyond the fossil fuel technology, a shift to exporting clean energy is optimal independent of global climate policy and climate policy can accelerate this shift. While if the clean technology is far behind, a shift should only happen as a response to global climate policy, and the government should intervene to accelerate this shift.
    Keywords: Environment; Directed technological change; Innovation policy; Resource curse
    JEL: O30 O31 O33
    Date: 2022–09
  17. By: Leila Ben Salem; Ridha Nouira; Khaled Jeguirim; Christophe Rault
    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 prices, ARDL, nonlinear ARDL, symmetric and asymmetric
    JEL: C50 Q40 Q43
    Date: 2022
  18. By: Saussay, Aurelien; Sato, Misato; Vona, Francesco; O’Kane, Layla
    Abstract: As governments worldwide increase their commitments to tackling climate change, the number of low-carbon jobs is expected to grow rapidly. Here we provide evidence on the characteristics of low-carbon jobs in the US using comprehensive online job postings data between 2010-2019. By accurately identifying low-carbon jobs and comparing them to similar jobs in the same occupational group, we show that low-carbon jobs differ from high-carbon or generic jobs in a number of important ways. Low-carbon jobs have higher skill requirements across a broad range of skills, especially technical ones. However, the wage premium for low-carbon jobs has declined over time and the geographic overlap between low- and high-carbon jobs is limited. Overall, our findings suggest there will be labour reallocation costs as workers transition into low-carbon activities. This suggests a role for targeted public investments in re-skilling to minimise transitional costs and ensure a workforce fit to deliver a rapid transition.
    JEL: R14 J01
    Date: 2022–10–28
  19. By: Dylan Radovic; Lucas Kruitwagen; Christian Schroeder de Witt; Ben Caldecott; Shane Tomlinson; Mark Workman
    Abstract: The energy transition potentially poses an existential risk for major international oil companies (IOCs) if they fail to adapt to low-carbon business models. Projections of energy futures, however, are met with diverging assumptions on its scale and pace, causing disagreement among IOC decision-makers and their stakeholders over what the business model of an incumbent fossil fuel company should be. In this work, we used deep multi-agent reinforcement learning to solve an energy systems wargame wherein players simulate IOC decision-making, including hydrocarbon and low-carbon investments decisions, dividend policies, and capital structure measures, through an uncertain energy transition to explore critical and non-linear governance questions, from leveraged transitions to reserve replacements. Adversarial play facilitated by state-of-the-art algorithms revealed decision-making strategies robust to energy transition uncertainty and against multiple IOCs. In all games, robust strategies emerged in the form of low-carbon business models as a result of early transition-oriented movement. IOCs adopting such strategies outperformed business-as-usual and delayed transition strategies regardless of hydrocarbon demand projections. In addition to maximizing value, these strategies benefit greater society by contributing substantial amounts of capital necessary to accelerate the global low-carbon energy transition. Our findings point towards the need for lenders and investors to effectively mobilize transition-oriented finance and engage with IOCs to ensure responsible reallocation of capital towards low-carbon business models that would enable the emergence of fossil fuel incumbents as future low-carbon leaders.
    Date: 2022–11
  20. By: Ilaria Perissi; Aled Jones
    Abstract: In the present study, for the first time, an effort sharing approach based on Inertia and Capability principles is proposed to assess European Union (EU27) carbon budget distribution among the Member States. This is done within the context of achieving the Green Deal objective and EU27 carbon neutrality by 2050. An in-depth analysis is carried out about the role of Economic Decoupling embedded in the Capability principle to evaluate the correlation between the expected increase of economic production and the level of carbon intensity in the Member States. As decarbonization is a dynamic process, the study proposes a simple mathematical model as a policy tool to assess and redistribute Member States carbon budgets as frequently as necessary to encourage progress or overcome the difficulties each Member State may face during the decarbonization pathways.
    Date: 2022–11
  21. By: Nosra Ben Fradj (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon); Laure Bamière (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon)
    Abstract: Contribuant à hauteur de 27% aux émissions de GES, l'agriculture est le deuxième secteur émetteur de la région. 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 Nouvelle-Aquitaine et promeut les pratiques les plus atténuantes.
    Keywords: MACC,coût d'abattement,atténuation GES,stockage de carbone
    Date: 2021–11
  22. By: Nosra Ben Fradj (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon); Laure Bamière (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon)
    Abstract: Bien que l'agriculture francilienne ne soit responsable que de 2% des émissions de GES au niveau régional, elle peut améliorer son propre bilan et contribuer à l'atténuation des émissions de GES nationales en mettant en place 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 Île de France et promeut les pratiques les plus atténuantes.
    Keywords: MACC,coût d'abattement,atténuation GES,stockage de carbone
    Date: 2021–11
  23. 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: Bien que l'agriculture en PACA n'émette que 3% des émissions de GES régionales, elle peut améliorer son propre bilan si 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 PACA et promeut les pratiques les plus atténuantes.
    Keywords: atténuation GES,MACC,coût d'abattement,stockage de carbone,PACA
    Date: 2021–11
  24. By: Nosra Ben Fradj (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon); Laure Bamière (ECO-PUB - Economie Publique - INRA - Institut National de la Recherche Agronomique - INA P-G - Institut National Agronomique Paris-Grignon)
    Abstract: L'agriculture contribue à hauteur de 28% 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 Normandie et promeut les pratiques les plus atténuantes.
    Keywords: MACC,coût d'abattement,atténuation GES,stockage de carbone
    Date: 2021–11
  25. By: Khuc, Quy Van
    Abstract: As nature degrades and the environment becomes more polluted, economists frequently use tax tools to mitigate and control the negative externality of the problem. The Pigou tax is, of course, one of the most common environmental economic instruments. However, it seems that this is not the best solution to the problem because environmental pollution and climate change are becoming more and more serious. While I appreciate what economists who have done in devising policies over the last several decades, I believe their efforts are insufficient to solve the problem.
    Date: 2022–09–11
  26. By: Catalin Dragomirescu-Gaina (Unicatt - Università cattolica del Sacro Cuore [Milano]); Dionisis Philippas (ESSCA Research Lab - ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Stéphane Goutte (SOURCE - SOUtenabilité et RésilenCE - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - IRD [France-Nord] - Institut de Recherche pour le Développement)
    Abstract: Donald Trump's use of Twitter was unprecedented. Despite his erratic communication style, some of Trump's strong statements were made in reference to the U.S. oil & gas industry, in line with his domestic policy agenda aimed at supporting re-industrialization and local investment. Did his Twitter messages actually reach domestic oil producers, refiners and transport operators or rather speculators willing to financially gamble on new information sources? To address this question, we model the WTI-Brent spread, which commonly reflects supply bottlenecks in the U.S. crude oil sector, using a nonlinear approach that reveals the perverse influence of some of Trump's tweets particularly on market speculative dynamics. Finally, we outline policy recommendations to counteract the market consequences of speculative behaviour driven by political noise.
    Keywords: WTI-Brent spread,Twitter,speculation
    Date: 2022–11–08
  27. By: Qinan Lu; Nieyan Cheng; Wendong Zhang; Pengfei Liu
    Keywords: Agricultural Finance
    Date: 2022
  28. By: Gruener, Sven
    Abstract: Climate change is one of the main challenges of our time. This paper examines how anticipated consequences of climate change influence individual and collective decision-making. Using a controlled information intervention experiment, we find that farmers in Germany – who are likely to be affected by climate change – increase their willingness to invest in risky assets but their cooperation behavior remains largely unaffected. In contrast to previous experiments on information provision, our results suggest that emotions cannot explain subjects’ behaviors. We argue that reminding of anticipated consequences of climate change can reactivate individuals’ memories that actions are necessary and, in turn, overcome inertia (JEL C91, C92, D01, D81, D91, H41, Q12, Q54).
    Date: 2022–08–29
  29. By: Gert Peersman (: Ghent University); Joris Wauters (National Bank of Belgium)
    Abstract: We use survey evidence on reported spending in hypothetical energy price shock scenarios to study novel features of the price elasticity of energy demand and the marginal propensity to consume (MPC) after paying the energy bill. We document several nonlinearities depending on the sign and magnitude of the energy price shock that are economically relevant, including at the extensive and intensive margins. There is also considerable heterogeneity across households. For price increases, the elasticity of energy demand appears to be significantly larger for households that will likely undertake major home renovations over the next months, and smaller for families with more appetite to consume. In contrast, MPCs depend on households’ income, saving buffer, financial uncertainty, appetite to consume, and gender of household head. Yet household characteristics hardly matter when energy prices decline; we only find smaller MPCs for households with a greater saving buffer and younger families. Finally, we show that targeted price subsidies on energy for Belgian low-income households have been much more effective in supporting non-energy consumption than the general VAT reduction on energy prices.
    JEL: D12 E21 H31 Q41 Q43
    Date: 2022–10
  30. By: Miranda, Francisca; Castañeda, Itzá; Román, Pilar; Velázquez, Margarita
    Abstract: Este documento es resultado del Encuentro Regional sobre Cambio Climático e Igualdad de Género, que se realizó de manera virtual en septiembre de 2021, organizado por el Gobierno de Chile —como país que ejerció la Presidencia del 25º período de sesiones de la Conferencia de las Partes en la Convención Marco de las Naciones Unidas sobre el Cambio Climático (CP 25)—, a través de sus Ministerios de Medio Ambiente, de Relaciones Exteriores y de la Mujer y la Equidad de Género, con el apoyo de la Unión Europea, a través de sus programas Euroclima+ y EUROsociAL+, el apoyo técnico de la Comisión Económica para América Latina y el Caribe (CEPAL) y la colaboración del sistema de las Naciones Unidas en Chile. En el Encuentro se presentaron y analizaron experiencias, buenas prácticas, desafíos y oportunidades para integrar la igualdad de género en la acción climática en América Latina y el Caribe, y la hoja de ruta del plan de acción sobre el género de la Convención Marco de las Naciones Unidas sobre el Cambio Climático. El documento recoge los avances de la región en materia de género y cambio climático, con el objetivo de servir como instrumento conectado al proceso de negociación en el marco del Acuerdo de París.
    Date: 2022–11–07
  31. By: Ronzheimer, Ira Nadine; Durán Lima, José Elías; Budnevich, Cristóbal; Gomies, Matthew
    Abstract: El tablero que se presenta en este documento se desarrolló en el marco de un proyecto de colaboración entre la Comisión Económica para América Latina y el Caribe (CEPAL) y la Deutsche Gesellschaft für Internationale Zusammenarbeit (GIZ) sobre electromovilidad en América Latina y el Caribe. Este tablero constituye una representación visual de la metodología propuesta, destinada a analizar los flujos de comercio de los componentes de autobuses eléctricos en América Latina y el resto del mundo, a fin de evaluar la capacidad productiva de los países latinoamericanos en este ámbito. Los componentes necesarios se desagregaron en tres niveles: componentes elaborados, componentes semielaborados y materias primas. El tablero captura la complejidad de esta metodología y permite tanto a los responsables de la formulación de políticas como a los empresarios utilizarla para evaluar el potencial de su país o empresa de participar en la cadena de valor de los autobuses eléctricos.
    Date: 2022–11–11
  32. By: Marie-Laure Cabon-Dhersin (LERN - Laboratoire d'Economie Rouen Normandie - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université)
    Abstract: We revisit the classic comparison of Bertrand and Cournot competition by studying how the form of competition between shipping companies affects transport prices, international trade, consumer and producer surplus, and social welfare in two countries that coordinate their environmental policies. We show that the standard Bertrand-Cournot ranking only prevails when pollution abatement technologies are sufficiently efficient.
    Date: 2022
  33. By: Fotis, Panagiotis; Korre, Maria
    Abstract: In recent years, there has been considerable interest in examining the relationship between tourism and sustainable development. For firms to act friendly against the environment, competition authorities (CA’s) must provide them with the appropriate legal certainty they need to make the necessary investments towards sustainability. Policy implications should be strengthened towards more installation of renewable energy and a convergence of environmental policies towards more efficient energy use among EU countries. Energy intensity flows must be kept up more closely since the empirical results point out its substantially positive contribution in terms of air pollution.
    Keywords: Competition (Antitrust) policy; Sustainable Development; Tourism
    JEL: K21 L83 Q01
    Date: 2022–11–06
  34. By: Yakubu, Ibrahim Nandom; Musah, Alhassan
    Abstract: In this study, we examine the relationship between foreign direct investment (FDI) and environmental pollution within the context of the pollution haven hypothesis (PHH) in Ghana. We also investigate the role of regulatory quality in the FDI-pollution linkage. The study employs quarterly data spanning the period 2000Q1-2017Q4 and applies the fully modified least squares (FMOLS) technique. The empirical results show that FDI inflows significantly and positively drive environmental pollution. This result holds in the presence of regulatory quality. Accordingly, we confirm the validity of the pollution haven hypothesis in Ghana. The study also finds that industrialization increases pollution given its significant positive relationship with ecological footprint. We discuss relevant policy implications.
    Keywords: FDI, Pollution haven hypothesis, Ecological footprint, FMOLS, Ghana
    JEL: F2 F20 Q5 Q58
    Date: 2022–11–01
  35. By: Jan Frankowski; Joanna Mazurkiewicz; Jakub Sokołowski
    Abstract: It is insufficient to calculate the number of jobs in the mining industry to determine the labour market effects of a coal phase-out. In this paper, we estimate the scale of mining-related and mining-dependent jobs in Europe’s largest hard coal mining region: Upper Silesia. In addition, we provide a precise structure and spatial distribution of mining-related companies using information from public tenders offered by five of the largest coal enterprises, coupled with financial and employment data from official administrative repositories. Our observations have shown a significant agglomeration effect in the region: companies within 20 kilometres of the nearest active hard coal mine were awarded 80% of all tender revenues. Moreover, we found that 41% of all identified jobs in mining-dependent companies in Upper Silesia were highly at risk of liquidation if there was to be a decline in coal production. Finally, we argue for labour market mitigation policies tailored to mining-dependent employees and the widespread application of administrative data in just transition planning to address the limitations of dominant top-down modelling approaches.
    Keywords: hard coal mining, indirect employment, labour market, administrative data, Upper Silesia
    JEL: L71 J21 Q43
    Date: 2022–11
  36. By: Afia Malik (Pakistan Institute of Development Economics, Islamabad)
    Abstract: The power sector in Pakistan needs effective regulation and not a regulatory burden. A single power sector regulatory authority, i.e., NEPRA with adequate and effective regulatory powers, itself monitored by the government will_ send consistent signals to company operators, overcome the issue of insufficient professional capacity, and strengthen the authority’s vulnerability to political interference.
    Keywords: Power Sector, Regulation, Regulatory,
    Date: 2022
  37. By: Kevin J. Stiroh
    Abstract: This paper presents a stylized framework of bank risk-taking to help clarify the concept of "double materiality," the idea that supervisory authorities should consider both the risks that banks face from climate change and the impact of a bank’s actions on climate change. The paper shows that the concept of double materiality can be coherently embedded in a microprudential framework, but the practical implications could be quite similar to the implications of a single materiality perspective. The importance of a double materiality perspective becomes larger when one considers macroprudential objectives driven by financial sector externalities. The framework illustrates the critical importance of being clear on the supervisory mandate and objectives when assessing policy alternatives.
    Keywords: Bank risk; Risk management; Climate change
    JEL: G21
    Date: 2022–10–13
  38. By: Khuc, Quy Van
    Abstract: I propose and adopt the environmental social efficiency framework that uses mindspongeEdu, MindspongeTech, MindspongeAI to achieve our environment-related goals/objectives for tackling climate change and environmental problems that humans face today.
    Date: 2022–09–14
  39. By: Khuc, Quy Van
    Abstract: According to many recently published reports and indisputably evidence, environmental pollution and climate change are becoming increasingly serious. Regrettably, this is because humans underestimate the value of nature, and particularly violate the asymmetry principle of nature and humans. To be specific, humans are creating an eco-deficit culture with one’s environmental footprints/impacts far surpass nature’s resilience capacity. In short, in this short note, I just initially introduce and advocate two new concepts/metrics: environmental social efficiency and ecosurplus index. We can use them for measuring the degree of realization of humans’ thoughts for environmental goals, evaluating the ecosurplus culture-based society, and building ecosurplus culture/high value culture for sustainable development in a long run. This is a further step to realize humans’ ambitious objectives for tackling environmental pollution and climate change. And more importantly, we will continue to develop these concepts/metrics till they are complete in years to come.
    Date: 2022–09–20
  40. By: Kishore, Prabhat; Singh, Dharam R.; Srivastava, Shivendra; Kumar, Arun; Prakash
    Keywords: Agribusiness, Resource /Energy Economics and Policy
    Date: 2021
  41. By: Basak Bayramoglu (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jean-François Jacques (ERUDITE - Equipe de Recherche sur l’Utilisation des Données Individuelles en lien avec la Théorie Economique - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel); Clément Nedoncelle (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Lucille Neumann-Noel (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Foreign aid allocation by donor countries to developing economies is known to be motivated by the donor country's bilateral trade interests. Does this apply also to bilateral climate aid? In this paper, we combine theoretical and empirical analyses to investigate how bilateral trade affects donor countries' allocations of bilateral climate aid. Our theoretical analysis develops a simple model to support our hypothesis that bilateral trade has a positive impact on climate aid transfers. The model highlights the terms-of-trade and positive income effects of climate aid, and predicts a positive relationship between donor countries' exports to and imports from recipient countries and their climate aid transfers. The empirical analysis is based on bilateral climate aid data for 2002 to 2017. We employ fixed effects and instrumental variable-2 stage least square estimations (IV-2SLS) with a shift-share instrument to overcome the endogeneity of trade. Our empirical results show that donors' exports have a significant, robust, positive effect on climate aid transfers.
    Abstract: L'allocation de l'aide étrangère par les pays donateurs aux économies en développement est connue pour être motivée par les intérêts commerciaux bilatéraux du pays donateur. Cela s'applique-t-il également à l'aide climatique bilatérale ? Dans cet article, nous combinons des analyses théoriques et empiriques pour étudier comment le commerce bilatéral affecte les allocations d'aide climatique bilatérale aux pays donateurs. Notre analyse théorique développe un modèle simple pour soutenir notre hypothèse selon laquelle le commerce bilatéral a un impact positif sur les transferts d'aide climatique. Le modèle met en évidence les termes de l'échange et les effets positifs de l'aide climatique sur les revenus, et prédit une relation positive entre les exportations et importations des pays donateurs vers les pays bénéficiaires et leurs transferts d'aide climatique. L'analyse empirique est basée sur les données de l'aide climatique bilatérale pour 2002 à 2017. Nous utilisons des effets fixes et des estimations des moindres carrés de la variable instrumentale à 2 étapes (IV-2SLS) avec un instrument de répartition pour surmonter l'endogénéité du commerce. Nos résultats empiriques montrent que les exportations des donateurs ont un effet significatif, robuste et positif sur les transferts d'aide climatique.
    Keywords: Climate Aid,Trade,Transfers,Mitigation
    Date: 2022
  42. By: Baudry, Marc; Faure, Anouk; Quemin, Simon
    Abstract: We develop an equilibrium model of emissions permit trading in the presence of fixed and proportional trading costs in which the permit price and firms' participation in and extent of trading are endogenously determined. We analyze the sensitivity of the equilibrium to changes in the trading costs and firms' allocations, and characterize situations where the trading costs depress or raise permit prices relative to frictionless market conditions. We calibrate our model to annual transaction data in Phase II of the EU ETS (2008–2012) and find that trading costs in the order of 10 k€ per annum plus 1 € per permit traded substantially reduce discrepancies between observations and theoretical predictions for firms’ behavior (e.g. autarkic compliance for small and/or long firms). Our simulations suggest that ignoring trading costs leads to an underestimation of the price impacts of supply-curbing policies, this difference varying with the incidence on firms.
    Keywords: emissions trading; EU ETS; policy design and evaluation; transaction costs; Grantham Foundation for the Protection of the Environment ; the UK Economic and Social Research Council
    JEL: D23 H32 L22 Q52 Q58
    Date: 2021–07–01
  43. By: Ahmed S. Alahmed; Lang Tong
    Abstract: We propose a social welfare maximizing mechanism for an energy community that aggregates individual and shared community resources under a general net energy metering (NEM) policy. Referred to as Dynamic NEM, the proposed mechanism adopts the standard NEM tariff model and sets NEM prices dynamically based on the total shared renewables within the community. We show that Dynamic NEM guarantees a higher benefit to each community member than possible outside the community. We further show that Dynamic NEM aligns the individual member's incentive with that of the overall community; each member optimizing individual surplus under Dynamic NEM results in maximum community's social welfare. Dynamic NEM is also shown to satisfy the cost-causation principle. Empirical studies using real data on a hypothetical energy community demonstrate the benefits to community members and grid operators.
    Date: 2022–11
  44. By: Singh, Tejendra Pratap; Mtenga, Erica
    Abstract: Using novel data on students' performance on national exams administered during secondary schooling in Tanzania, we study how air pollution exposure on the day of the exam affects student performance on these exams. To uncover causal effects, we leverage plausibly exogenous changes in local wind direction in an Instrumental Variables (IV) setup. Our IV estimates imply that an increase in PM2.5 concentration by 10 µg/m3 on the day a student appears for the exam worsens their performance on the exam by 0.06 standard deviations. Our results are robust to a host of falsification checks. We also document that the effects are more pronounced for younger students, males, students appearing for exams in government schools, and those at the lower end of the achievement distribution. Further, we find that these effects could be driven by adverse effects of air pollution on exams that test fluid intelligence.
    Date: 2022–08–15
  45. By: Khuc, Quy Van
    Abstract: The integrated systems approach framework for environmental pollution and climate change
    Date: 2022–07–19
  46. By: Islam, Monirul; Sohag, Kazi; Alam, Md. Mahmudul (Universiti Utara Malaysia)
    Abstract: The clean energy transitions require a large volume of minerals to handle its diverse technologies, such as solar photovoltaics (PV), wind turbines etc. Therefore, mineral importing countries concentrated on cleaner energy production confront an uprising trend in critical mineral prices due to thriving demands. We quest for the response of the top mineral importing countries' import demand for minerals to the clean energy transitions from 1996 to 2019 within the import-demand function analysis. Using the cross-sectional autoregressive distributed lag (CS-ARDL) method, our findings divulge a significantly positive response of mineral import demand to solar and wind energy productions in the long run. We also find that mineral price elasticity holds the Marshallian demand hypothesis in the mineral-laden solar energy generation while contradicting it in wind energy production. In addition, the oil price substitution effect does not sustain, whereas exchange rate depreciates mineral import demands in the long run. Therefore, our policy implications encompass optimizing the mineral resources for clean energy transitions to materialize the 21st century's global agenda of a decarbonized or net-zero emissions trajectory.
    Date: 2022–07–12
  47. By: Knut Are Aastveit; Hilde C. Bjørnland; Thomas S. Gundersen
    Abstract: We show that shale oil producers respond positively to favourable oil price signals and that this response is mainly associated with the timing of production decisions through well completion and refracturing, consistent with the Hotelling theory of optimal extraction. This finding is established using a novel proprietary data set consisting of more than 200,000 shale wells across ten U.S. states spanning almost two decades. We document large heterogeneity in the estimated responses across the various shale wells, suggesting that aggregation bias is an important issue for this kind of analysis. Our empirical results call for new models that can account for a growing share of shale oil in the U.S., the inherent flexibility of shale extraction technology in production and the role of shale oil in transmitting oil price shocks to the global economy.
    Keywords: Oil price, Shale oil supply, Well-level panel data
    JEL: C23 Q41 Q43
    Date: 2022–11
  48. By: Committeri, Marco; Brüggemann, Axel; Kosterink, Patrick; Reininger, Thomas; Stevens, Luc; Vonessen, Benjamin; Zaghini, Andrea; Garrido, Isabel; Van Meensel, Lena; Strašuna, Lija; Tiililä, Nea; Weidner, Stephanie; Wilbert, Lucia
    Abstract: Climate change poses three specific but interrelated policy challenges: climate change mitigation, climate change adaptation (which includes building up resilience) and managing transition risks. The International Monetary Fund (IMF) is a multilateral institution with global reach and near-universal membership. Therefore, along with other international organisations, it has an important role to play in addressing the policy challenges posed by climate change. This paper discusses the contribution the IMF makes and can make in its three areas of competence: surveillance, lending and technical assistance. The paper concludes that the IMF has significantly increased its engagement in climate change matters in recent years but should further intensify its efforts in ways that are fully consistent with its mandate. JEL Classification: F3, F33, F34, O19, Q5, Q48, Q54
    Keywords: climate change, International Monetary Fund, lending, surveillance, technical assistance
    Date: 2022–11
  49. By: Magalhaes, M.; Ringler, C.; Verma, Shilp; Schmitter, Petra
    Abstract: With adverse impacts of climate change growing in number and intensity, there is an urgent need to reduce emissions from food systems to net zero. This can only be achieved if rural areas in low- and middle-income countries gain access to clean energy. A review of the research and capacity building contributions of the CGIAR Research Program on Water, Land and Ecosystems (WLE) over the last 10 years suggests important contributions in the areas of energy policy and energy investment planning, cost and feasibility frameworks, and business models for clean energy technology uptake. WLE has also conducted successful pilot projects on solar irrigation to provide an evidence base for scaling up innovative energy initiatives. Finally, the program also considered non-agricultural uses of energy where relevant to food systems, and implemented capacity building activities. Going forward, CGIAR has a key role to play in providing information, supporting access and piloting innovative, scalable clean energy interventions to support the achievement of multiple impacts for the poorest and most food-insecure women and men farmers and entrepreneurs.
    Keywords: Agribusiness, Agricultural and Food Policy, Agricultural Finance, Farm Management, Financial Economics, Food Security and Poverty, Research and Development/Tech Change/Emerging Technologies
    Date: 2022–11–01
  50. By: M S, Navaneeth; Siddiqui, Ismail
    Abstract: It is clear that the rapid expansion of the post-World War two economy, financed through Bretton Wood Institutions is not a model path. The role of financial institutions is increasingly being recognised in this domain as a way to redeem the perceived environmental disregard. The development agenda received a critical rethinking as it became clear by the late 1980s that the pre-existing models of industrialisation prescribed to the ‘developing-world’ meant deep neglect of the environment. In order to go ahead with attaining the 2030 Sustainable Development Goals (SDGs), there is a major push required for green projects. Green bonds can unleash the power that the financial sector holds, as it will bestow a strong motivation upon banks and investors to move the capital from dirty industries to cleaner ones.
    Keywords: Green Finance; Climate Change; Green bonds; SDG
    JEL: G38 Q56
    Date: 2022–10
  51. By: Briglauer, Wolfgang; Köppl-Turyna, Monika; Schwarzbauer, Wolfgang
    Abstract: Digitization related services and applications are based on the information and comm unications technology (ICT) ecosystem and encompass almost all areas of society and economic sectors nowadays and exert numerous opposing effects in regard to electricity c onsumption and corresponding CO2 emissions. Our analysis aims to inform policy decis ion makers about the actual climate relevance of the ICT ecosystem by providing sound empirical evidence on the net effect of various ICT core elements based on recent OECD panel data utilizing panel econometric estimation methods that include instrumental variables. When compared with previous empirical contributions, we utilize more comprehensive measures of the ICT ecosystem and explicitly address potential endogeneity co ncerns. In line with all the previous studies using data from developed countries, w e found that the CO2 reducing positive indirect effects outweigh the negative, in other words, CO2 increasing direct and indirect effects on average. Specifically, we found that, in addition to the lowering effect related to the use of basic broadband conn ections, there was another lowering effect albeit smaller related to new fiber based broadband connections. We found that according to our conservative estimates, basic, and fiber based broadband connections induced a substantial reduction of CO2 emissions in the average OECD country amounting to at least 67 Mt CO2 during our period of analysis (2002 2019). This roughly corresponded to the total annual CO2 emissions of an OECD country with the size of Greece. In contrast, other elements of the ICT ecosystem , such as mobile broadband networks or electronic end user devices, showed no significant net impact on CO2 emissions. This result points to potentially opposing and, by, and large, offsetting effects at an aggregate level and/or to the dominant role of th e other macroeconomic, demographic, and institutional control variables in exp laining total CO2 emissions at the country year level. We conclude that undifferentiated climate policy measures imposed on the ICT ecosystem would not do justice to the identif ied heterogeneity, with numerous in part opposing effects, and likely would be accompanied by inefficiencies and market distortions. In view of this heterogeneity, regulatory interventions, if any, should be targeted at reducing particularly resource inten sive digital services with evidentially high CO2 emissions (such as online vid eo streaming or bitcoin mining). Moreover, our findings based on data of developed countries provides evidence for the "pollution haven hypothesis" suggesting that environmentall y intense production of ICT network equipment and end user devices, the extrac tion of rare earth elements and disposal of ICT waste is allocated to some major non OECD member states such as India, China and some East Asian countries (other than OECD member states Japan and South Korea). Whereas in OECD countries the value added from ICT services has been rising, the value added from ICT manufacturing, with particularly high CO2 emissions, has been falling. Although the ICT sector as a whole is growing world wide, the growth of energy intense ICT production and manufacturing differs su bstantially between regions and countries.
    Keywords: ICT,digitization,CO2 emissions,electricity consumption,OECD data,panel econometrics
    JEL: L52 L96 Q40 Q55
    Date: 2022
  52. By: Vicuña, Sebastián; Marín, Carlos; Pica, Andrés; Rivera, Antonio
    Abstract: El precio social del carbono es un instrumento de política con el que es posible incidir, a través de decisiones de inversión pública, en el estilo de desarrollo de los países. En este estudio se presentan los resultados de simulaciones realizadas con distintos precios sociales del carbono, sobre la base de una tipología de proyectos de inversión en el sector de la infraestructura de caminos en Chile y Honduras.
    Date: 2022–10–19
  53. By: Guglielmo Maria Caporale; Cristiana Donati; Nicola Spagnolo
    Abstract: This paper investigates the factors (such as different sources of financing, energy audits and internal monitoring activities) affecting the propensity of European small and medium sized enterprises (SMEs) to adopt energy efficiency measures (EEMs). For this purpose, a Probit model is estimated using data from the 2017 Flash Eurobarometer survey covering a large sample of European firms. The analysis is carried out for the full sample as well as for clusters based on an environmental performance index (EPI) and on the level of economic development in turn. The results indicate that internal financing always has a positive effect on a firm’s propensity to adopt EEMs. Private external sources of financing appear to be more important for Western European firms as well as for those located in countries with a greater level of environmental awareness; in the latter, when firms combine private financing with energy audits or internal monitoring activities the propensity to adopt EEMs increases further. By contrast, in the Eastern Countries this occurs when firms simultaneously rely on public funds and monitoring activities.
    Keywords: energy efficiency measures, EPI, financing, SMEs
    JEL: G32 O16 Q40
    Date: 2022

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