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on Energy Economics |
| By: | Novelli, Giacomo |
| Abstract: | We investigate whether the degree of energy dependency of countries influences their macroeconomic performance in terms of long-run growth. Specifically, we study whether the impact of energy price changes on economic growth differs depending on a country’s degree of energy dependency. There are two novel aspects in this paper. First, all energy commodities are considered, not only oil, and second, our work goes beyond the standard distinction between energy importing and exporting countries. We claim that energy importing and exporting countries are too heterogeneous in terms of net energy imports, energy consumption, and level of development to be clustered and analysed together. Relying on a sample clusterization in groups of countries with a similar degree of energy dependency and using a cross-sectionally augmented panel autoregressive distributed lag (CS-ARDL) approach, we show that countries with a high degree of energy dependency are associated with a negative and significant long-run energy price elasticity of GDP, while countries with a low degree experience the opposite effect, and more balanced countries are less or not significantly affected. Moreover, we contribute to the resource curse paradox showing that the energy price volatility negatively affects the long-run economic growth of countries with a low degree of energy dependency, but it does not hamper the long-run growth of other countries. We argue that the impact of energy price changes differs across countries with a different degree of energy dependency and that a balanced degree of energy dependency is preferable. Therefore, we suggest major energy importers should reduce their degree of energy dependency, while major energy exporters may differentiate their energy production, avoiding to rely only on fossil sources. Renewable sources may be a key driver to improve the management of the degree of energy dependency. |
| Keywords: | Political Economy, Resource /Energy Economics and Policy |
| Date: | 2022–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:329650&r=ene |
| By: | Werner Roeger (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Paul J. J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | The merit-order approach in the electricity market, which is in widespread use across the EU27 and the UK, has proven to be somewhat economically problematic in the context of the Russo- Ukrainian war. The massively increased gas prices since summer 2022 – in the context of Russian supply cuts to the EU – has led to an abnormally high electricity price: Using the merit order approach, the price of electricity increases enormously if, as is often the case, gas is the last type of energy still realized in power generation; this leads to artificial increases in returns for all other types of energy providers whose output is used in power generation. Gas price increases by Russia or Russian supply cuts to the EU can increase the price of electricity and also the rate of inflation, as well as depress real income. The electricity price shock can be countered by switching – temporarily – to a modified regulation of the electricity market for a few years with a gas price subsidy in the electricity market. In a macroeconomic analysis, we identify both the output losses and adverse distributional effects of a gas price hike and find that a gas price subsidy is superior in stabilizing output and employment compared to a transfer; it also at least partially addresses certain distributional issues by reducing windfall profits in the electricity market. The study advocates a combination of gas price subsidies only in the electricity market and targeted transfers to households to meet both efficiency and distributional targets. The macro-analysis findings presented herein should be considered carefully, as they could minimize the welfare losses in the EU and the UK. As regards the expansion of renewable energy-based electricity, it is shown herein that the cost-differential between gas-fired power stations and renewable electricity is critical – large cost differentials imply barriers for an expansion of electricity generation from renewables unless there is a price regulation of electricity. There is the potential of an inefficient adjustment path due to nonlinearities. With a proposed narrow gas price cap for the electricity market only, the associated initial deficit related to necessary subsidies is, of course, much smaller than in the case of a general gas price cap. |
| Keywords: | Power sector, Russo-Ukrainian war, gas prices, macro modeling, subsidy policy, transfers, DSGE model |
| JEL: | D58 L51 L52 Q41 E64 Q48 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei323&r=ene |
| By: | Werner Roeger (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)); Paul J. J. Welfens (Europäisches Institut für Internationale Wirtschaftsbeziehungen (EIIW)) |
| Abstract: | Since late summer 2022, policymakers in Germany and many other European Union (EU) countries have increasingly discussed the option of imposing a gas price cap and introducing transfer payments to private households to help consumers in terms of gas, heat and electricity purchases. How a gas price cap should be designed - for all gas customers in the household and industrial sectors or targeted towards certain gas-consuming sectors - is not clear for the time being; in Germany, a special commission is to deliver proposals on this in October. Following a new EIIW analysis by Roeger and Welfens, it is shown below that a gas price cap only makes economic sense for the electricity market and the overall economy - supplemented by certain transfer measures. The DSGE model simulation results for Germany (or also the EU) are clear: Compared to a situation without government intervention or a pure transfer approach, real income and employment develop more favorably, while both inflation and the government deficit are lower in the medium term. It is also recommended that policy approaches be coordinated within the EU to avoid distortions in the EU’s internal market and, finally, that demand and peak load management be stepped up in national electricity markets. This is because with reduced peak loads over the course of the day, there will be less need to rely on the flexible but price-driving gas-fired power generation than has been the case to date or which can be expected in the context of a falling gas price in the electricity market. If the share of gas in electricity generation decreases, this may contribute to a medium-term decline in the price of gas in Europe. |
| Keywords: | Power sector, Russo-Ukrainian war, gas prices, macro modeling, subsidy policy, transfers, DSGE model |
| JEL: | D58 L51 L52 Q41 E64 Q48 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:bwu:eiiwdp:disbei324&r=ene |
| By: | Britto, Anthony; Kraft, Emil; Dehler-Holland, Joris |
| Abstract: | We examine the relationship between the choice of steelmaking technology and energy prices in Germany using data beginning 1970. The analysis indicates that technology choice began to cointegrate with comparative energy prices in the early 90s. The short and long-run effects of energy prices are captured in a partial adjustment model; the ratio of electricity to coal prices is seen to exert sizeable influence on the short and long-term deployment of the electric arc furnace for secondary steelmaking. If current trends in energy prices continue, the share of secondary steelmaking in total steel production is expected to increase rather slowly. |
| Keywords: | technology adoption and diffusion,steelmaking,electric arc furnace,comparative energy prices,ARDL model |
| JEL: | D24 O14 O33 Q49 C22 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:68&r=ene |
| By: | Britto, Anthony; Dehler-Holland, Joris; Fichtner, Wolf |
| Abstract: | We revisit optimal investment in energy-efficiency, presenting a decision framework built around the agent's wealth and wealth dynamic. An investment rule in the form of a trigger is derived such that the agent invests the first time the energy-carrier price crosses this threshold from below. Wealthier consumers, and those whose wealth grows faster, are seen to have less incentive to invest in energy-efficiency and alternative technologies. We investigate the market for heat pump upgrades in Germany and find scant evidence of an energy-efficiency gap. Modest carbon taxes coupled with subsidies suffice to generate stated policy goals in the short term. |
| Keywords: | energy-efficiency gap,energetic building retrofits,wealth dynamics |
| JEL: | D15 D31 D81 H23 O33 Q48 Q49 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:67&r=ene |
| By: | Manisha Jain (Indira Gandhi Institute of Development Research) |
| Abstract: | Energy efficiency plays a central role in climate change mitigation policies, but their impact on economy-wide energy consumption is uncertain. Improved methods to measure energy efficiency savings are adopted mainly in countries with mandatory energy efficiency targets. These countries combine bottom-up and top-down methods to enhance reliability. India has implemented various energy efficiency measures, and their impact is estimated using the simplified deemed savings bottom-up approach. Index Decomposition Analysis is a simple top-down approach, but its use in India is limited due to data gaps. Using India's energy balances from International Energy Agency, I estimate the energy efficiency savings in India during 2011-19. I find that the IDA estimates are lower than the government's deemed savings estimates. The underlying assumption in the simplified deemed savings approach and data gaps in index decomposition analysis limits the usability of the estimates. National level targets on energy efficiency can push improvements in energy savings measurement techniques used in India. The targets can also address a few barriers in the energy efficiency markets. |
| Keywords: | energy efficiency savings, energy efficiency targets, energy intensity, decomposition analysis, manufacturing energy intensity, energy balances |
| JEL: | Q4 K3 O13 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2022-015&r=ene |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Ojong, Nathanael |
| 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: | 2022–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115379&r=ene |
| By: | Frederic Ang (WUR - Wageningen University and Research [Wageningen]); Kristiaan Kerstens (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Jafar Sadeghi (UWO - University of Western Ontario) |
| Abstract: | The agricultural sector is currently confronted with the challenge to reduce greenhouse gas (GHG) emissions, whilst maintaining or increasing production. Energy-saving technologies are often proposed as a partial solution, but the evidence on their ability to reduce GHG emissions remains mixed. Production economics provides methodological tools to analyse the nexus of agricultural production, energy use and GHG emissions. Convexity is predominantly maintained in agricultural production economics, despite various theoretical and empirical reasons to question it. Employing non-convex and convex frontier frameworks, this contribution evaluates energy productivity change (the ratio of aggregate output change to energy use change) and GHG emission intensity change (the ratio of GHG emission change to polluting input change) using Hicks-Moorsteen productivity formulations. We consider GHG emissions as by-products of the production process by using a multi-equation model. Given our empirical specification, non-convex and convex Hicks-Moorsteen indices can coincide under certain circumstances, which leads to a series of theoretical equivalence results. The empirical application focuses on 1,510 observations of Dutch dairy farms for the period of 2010–2019. The results show a positive association between energy productivity change and GHG emission intensity change, which calls into question the potential of on-farm, energy-efficiency-increasing measures to reduce GHG emission intensity |
| Keywords: | productivity analysis,energy,greenhouse gas emissions,dairy,nonconvexity |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03833513&r=ene |
| By: | Yelly Kwesy Lawluvy; Olivia Kwakyewaa Ntim; Albert Agbeko Ahiadu |
| Abstract: | Although green buildings have been found to be more life-cycle cost-effective than conventional buildings, the capital cost of building green remains greater than that of traditional alternatives, especially in the Ghanaian market. As such, for green buildings to gain proliferation in Ghana, adopters must be willing to bear a cost premium. This study tests Ghana's green building proliferation readiness by investigating Ghanaians' willingness to pay a green building cost premium. An online survey was administered and responded to by 1,227 participants, upon which statistical analysis, including ANOVA and correlation analyses, were conducted. 70.1% of respondents showed a willingness to pay a cost premium for green buildings, with 33.4% of respondents indicating a willingness to pay a premium of up to 5% of the cost of a conventional alternative. Further analyses revealed statistically significant differences in willingness to pay for green buildings across Education levels, Income levels, Environmental Concern levels, and Green Building Awareness levels. However, no significant differences were found between different ages and genders. |
| Keywords: | sustainability; Willingness to pay; Ghana; Green building; Influencing Factors |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:2022-052&r=ene |
| By: | Medina-Cabrera, Arturo; Ortiz-Arango, Francisco; Venegas-Martínez, Francisco |
| Abstract: | This papers aims at examining the importance of adopting energy democracy and energy justice principles in carrying out energy projects in Mexico. These concepts have gained international relevance in recent years due to the climate change and the energy transition; however, they have not been adopted to evaluate the feasibility of Mexico’s energy projects. In this context, this research analyzes the Eurus wind farm in the state of Oaxaca, which was recognized for complying with Mexican regulations and paying particular attention to environmental and social impacts, as well as governance issues; even it has gained international recognition. Nonetheless, from its construction to its current operation it has had conflicts with the communities. The main findings are that when analyzing this project under the crucible of energy democracy and energy justice, we found several negative impacts and deficiencies in its development, the reason being the absence of these principles when evaluating this energy project. |
| Keywords: | Energy democracy, energy justice, energy regulation, energy projects, social impact. |
| JEL: | K23 |
| Date: | 2022–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115459&r=ene |
| By: | Bonev, Petyo; Emmenegger, Rony; Forero, Laura; Ganev, Kaloyan; Simeonova-Ganeva, Ralitsa; Soederberg, Magnus |
| Abstract: | This paper studies the social acceptance of nuclear energy and nuclear waste. Using a randomized choice experiment, we find that the prospects of a nearby nuclear waste repository reduce the acceptance of nuclear power. This result indicates the the Not-In-My-Backyard problem is partially driven by free-riding: individuals willing to accept the advantages of nuclear energy but not willing to internalize the associated cost. We also find that economic incentives decrease free riding and potentially help solve the Not-In-My-Backyard problem. |
| Keywords: | environmental policy, nuclear power, nuclear waste, NIMBY, crowding intrinsic motivation |
| JEL: | C91 D71 D72 Q53 Q58 R53 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2022:15&r=ene |
| By: | bizet, romain; Bonev, Petyo; Lévêque, François |
| Abstract: | This is the first paper to statistically evaluate the relationship between age of a nuclear power plant and nuclear safety. We use a novel dataset that contains over 13000 small incidents in the French fleet between 1997 and 2015. We find that after an initial period of increase, safety eventually decreases with age. This is consistent with the bathtub effect usually measured in the reliability literature. |
| Keywords: | environmental policy, nuclear power, nuclear waste, NIMBY, crowding intrinsic motivation |
| JEL: | C91 D71 D72 Q53 Q58 R53 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:usg:econwp:2022:16&r=ene |
| By: | Tesfatsion, Leigh |
| Abstract: | U.S. centrally-managed wholesale power markets operating over high-voltage AC transmission grids are currently transitioning from heavy reliance on fossil-fuel based power to greater reliance on renewable power. This study highlights four conceptually-problematic economic presumptions reflected in the legacy core design of these markets that are hindering this transition. The key presumption is the static conceptualization of the basic transacted product as energy amounts competitively determined for delivery at designated grid locations during successive operating periods, supported by ancillary services. The study then discusses an alternative "linked swing-contract market design" that appears better-suited for the support of increasingly decarbonized grid operations. This design entails a fundamental switch to a dynamic insurance focus on advance reserve procurement permitting continual balancing of real-time net load. Reserve consists of available collections of diverse centrally-dispatchable power flows with swing (flexibility) in their attributes, offered into linked centrally-managed forward reserve markets by two-part pricing swing contracts in firm or option form. |
| Date: | 2022–09–14 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202209141325510000&r=ene |
| By: | Jacqueline Adelowo; Moritz Bohland |
| Abstract: | Electricity markets are prone to the abuse of market power. Several US markets employ algorithms to monitor and mitigate market power abuse in real time. The performance of automated mitigation procedures is contingent on precise estimates of firms’ marginal production costs. Currently, marginal cost are inferred from the past offers of a plant. We present new estimation approaches and compare them to the currently applied benchmark method. We test the performance of all the approaches on auction data from the Iberian power market. The results show that our novel approaches outperform the benchmark approach significantly, reducing the mean absolute estimation error from 11.53 €/MWh to 2.77 €/MWh for our most precise alternative approach. Applying this result to a market mitigation simulation we find sizeable overall welfare gains and welfare transfers from supplier to buyer surplus. Our research contributes to accurate monitoring of market power and improved automated mitigation. Although we focus on power markets, our findings are applicable to monitoring of renewable energy tenders or market power surveillance in rail and air traffic. |
| Keywords: | Regulation, automated mitigation procedure, best-response pricing, market power, Electricity, mark-up |
| JEL: | D22 D43 D44 D47 L13 L94 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_387&r=ene |
| By: | Patrick Gruning (Latvijas Banka) |
| Abstract: | This study develops a small open economy dynamic stochastic general equilibrium model with green and brown intermediate goods, banks subject to capital requirements, and public investment. The domestic economy might face domestic or foreign carbon taxes and an emissions cap. The model is used to analyze which environmental, fiscal, and bank regulation policies are effective facilitators of the domestic economy’s green transition and the costs involved. Among the policies that can generate an exogenously imposed and fixed emissions reduction, most costly is the exogenous world brown energy price increase, followed by the emissions cap reduction, while the introduction of domestic carbon taxes does not change GDP in the long run. The reason for this stark difference is that domestic carbon taxes and emissions cap violation penalties are used to stimulate public green investment. However, only domestic carbon tax revenues are substantial as brown entrepreneurs do not violate theemissions cap in equilibrium. Bank regulation policies and other fiscal policies are not capable of generating large emissions reductions. During the green transition induced by domestic carbon taxes, the first years of the transition are characterized by a run on brown energy in anticipation of higher prices in the future. |
| Keywords: | small open economy, climate transition risk, energy, environmental policy, bank regulation, public investment |
| JEL: | E30 F41 G28 H23 H41 Q50 |
| Date: | 2022–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:wpaper:202206&r=ene |
| By: | Jiranyakul, Komain |
| Abstract: | This paper preliminarily evaluates the potential of Thailand to substitute ethanol as an alternative to gasoline consumption. Even though the government has given necessary measures to stimulate the expansion of ethanol blend fuel consumption, the level of high ethanol blend (E85) use is still low. Therefore, it will take a long period of time to use ethanol (renewable energy) as a means to reduce crude oil imports, to improve environmental quality and to maintain energy security. |
| Keywords: | Gasoline, ethanol blend, flexible fuel vehicles, energy security |
| JEL: | Q20 Q40 |
| Date: | 2022–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115503&r=ene |
| By: | Khanindra Ch. Das |
| Abstract: | Extractive industries are spread across mining of metal and minerals, oil and gas, among others. Multinationals in these sectors are confronted with different challenges ranging from corruption, political risk, economic uncertainty, sunk costs, and the long-gestation periods to execute projects. As a result, tax payment behaviour of subsidiaries in the extractive sector could be dependent not only on these factors, but also on the life cycle of the subsidiary, profitability, and holding structure. |
| Keywords: | Extractive industries, Tax, policy uncertainty, Corruption, Political stability, Economic policy |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2022-133&r=ene |
| By: | Cristiana Vitale; Alexis Durand; Gloriana Madrigal; Manuel Gerardo Flores Romero; Pedro Caro de Sousa; Paul Yu |
| Abstract: | This paper describes and analyses recent reforms in the natural gas market in Brazil aimed at fostering a more open, competitive, efficient, and flexible gas sector. This paper reviews the changes in the regulatory framework using two lenses: the reform process seen through a regulatory policy lens and the resulting regulatory framework using the OECD Product Market Regulation (PMR) indicator. The paper includes policies options to further improve the regulatory framework in the sector and reap the full range of benefits of the reforms. |
| Keywords: | Brazil, Competition, Network Sectors, Product Market Regulation, Regulation |
| JEL: | L51 L95 N76 |
| Date: | 2022–12–08 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1736-en&r=ene |
| By: | Lucke, Bernd; Rehfeldt, Erik |
| Abstract: | How do expropriations of foreign oil and gas assets affect the net inflow of FDI? We analyze political and legal developments which led to increased government control of natural resource extraction industries in South America in the early 2000s and discuss at which point in time foreign investors saw legislation as violating their legitimate property rights. We use synthetic control methods (SCM) to date expropriations and to quantify their effect on FDI inflows in subsequent years. Strongly negative and statistically significant effects are found for Bolivia and Venezuela, with similar, but less conclusive evidence for Ecuador. SCM approaches which focus on structural characteristics and put little weight on pre-treatment outcomes are better equipped to detect the true “treatment” date than canonical SCMs. This is shown for Argentina where the 2012 nationalization of Repsol hardly affected FDI still down from the reputational damage inflicted by Argentina’s 2001 sovereign default. |
| Keywords: | Expropriation, FDI, synthetic control method |
| JEL: | F21 H13 |
| Date: | 2022–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115374&r=ene |
| By: | Paolo Gelain; Marco Lorusso |
| Abstract: | We document the existence of a quantitative relevant banks' balance-sheet transmission channel of oil price shocks by estimating a dynamic stochastic general equilibrium model with banking and oil sectors. The associated amplification mechanism implies that those shocks explain a non-negligible share of US GDP growth fluctuations, up to 17 percent, instead of 6 percent absent the banking sector. Also, they mitigated the severity of the Great Recession’s trough. GDP growth would have been 2.48 percentage points more negative in 2008Q4 without the beneficial effect of low oil prices. The estimate without the banking sector is only 1.30 percentage points. |
| Keywords: | oil price shocks; DSGE models; financial frictions |
| JEL: | E32 E44 Q35 Q43 |
| Date: | 2022–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwq:95098&r=ene |
| By: | Elaine L. Hill |
| Abstract: | The benefits and costs of resource extraction are currently being hotly debated in the case of shale gas development (commonly known as "fracking"). Colorado provides a unique research environment given its long history of conventional oil and gas extraction and, most recently, shale gas development. To define exposure, I utilize detailed vital statistics and mother's residential address to define close proximity to drilling activity. Using a difference-in-differences model that compares mothers residing within 1 km of a wellhead versus 1-5 km, I find that proximity to wells reduces birth weight and gestation length on average and increases the prevalence of low birth weight and premature birth. I also find an increase in gestational diabetes and hypertension for mothers living near wells. These results are robust to multiple specifications and suggest that policies to mitigate against the risks of living near oil and gas development may be warranted. |
| JEL: | I10 I18 Q33 Q53 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30684&r=ene |
| By: | Brittany Street (Department of Economics, University of Missouri) |
| Abstract: | Economic theory suggests crime should decrease as economic opportunities increase the returns to legal activities. However, there are well-documented cases where crime increases in response to areas becoming more prosperous. This paper addresses this puzzle by examining the effects on crime only for residents already living in the area prior to the economic boom. This approach isolates the effect of local economic opportunity from the effect of changing composition due to in-migration during these periods. To identify effects, I exploit withinand across-county variation in exposure to hydraulic fracturing activities in North Dakota using administrative individual-level data on residents, mineral lease records, and criminal charges. Results indicate that the start of economic expansion – as signaled by the signing of leases – leads to a 14 percent reduction in criminal cases filed. Effects continue once the fracking boom escalates into to production period. These results are in contrast to the observed aggregate increase in crime from fracking activities and consistent with improved economic opportunity reducing crime, highlighting the important role of compositional changes. |
| Keywords: | Crime, Economic Opportunity, Fracking |
| JEL: | K42 J60 R23 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:2212&r=ene |
| By: | Alexeev, Michael; Zakharov, Nikita |
| Abstract: | We investigate the relationship between oil windfalls and income inequality using the subnational data of one of the resource-richest and most unequal countries in the world – Russia. While previous literature produced contradictory findings due to the use of an aggregate measure of oil rents mainly in cross-national settings, we focus exclusively on oil rents that accrue to the subnational governments across one country. Our estimation strategy takes advantage of the two specific features of Russian oil taxation: 1) the policy change when sharing oil extraction taxes with local budgets was discontinued; and 2) the oil tax formula being tied directly to the international oil prices making oil price shocks an exogenous measure of change in oil rents. When we look at the period with oil tax revenues shared with the regional governments, we find that oil windfalls had increased income inequality and benefited the wealthiest quintile of the population in regions with more intense rent-seeking. Further, positive price shocks combined with greater rent-seeking reduced the share of labor income but increased the income share from unidentified sources traditionally associated with corruption. These effects of oil windfalls disappeared after the Russian government discontinued oil tax revenue sharing with regional governments. Finally, we examine some political implications of rising inequality due to the appropriation of oil windfalls. We find a positive effect of rising inequality on the frequency of protests associated with grievances among the poor and disadvantaged social groups; this effect, however, exists only in relatively democratic regions. |
| Keywords: | oil,decentralized revenues,income inequality,corruption,protest,Russia |
| JEL: | D63 D73 Q35 Q38 P48 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofitp:bdp2022_002&r=ene |
| By: | Alex Perez; Juan Sebastián Vélez-Velásquez |
| Abstract: | Price dispersion is a prevalent feature even of markets where, arguably, homogeneous good are traded. At the heart of the causes of price dispersion lie the firms’ strategic interactions with their customers and rivals. Consumers’ eagerness and ability to search for lower prices tends to reduce dispersion because it enhances competition. Firms inability to sustain tacit collusion, on the other hand, increases price dispersion. Wholesale costs shock can impact both. We use data on retail gasoline markets from Colombia to assess whether changes in price dispersion following wholesale cost shocks are explained by consumer searching or by firms breaking away from collusive equilibria. We also explore the role played by market structure on the extent of price dispersion. Our findings suggest that changes in price dispersion following wholesale cost shocks are driven by consumers searching more intensely for lower prices. We also find a positive correlation between the number of service stations in a market and how disperse prices are. Our results are robust to alternative ways of measuring price dispersion and alternative ways of defining relevant markets. **** RESUMEN: La dispersión de precios es una característica prevalente de mercados en los que se transan bienes que son presuntamente homogéneos. Entre las causas de dicha dispersión de precios se destacan las interacciones estratégicas entre las firmas y entre éstas y sus clientes. La propensión de los consumidores a buscar un precio más bajo reduce la dispersión porque incrementa la competencia. La inhabilidad de las firmas para sostener colusión tácita, por otra parte, incrementa la dispersión. Los costos mayoristas pueden afectar a ambas. En este documento usamos datos de los mercados de gasolina minoristas colombianos para averiguar si los patrones de dispersión que se observan después de un choque de costos son explicados porque los consumidores buscan más intensivamente o porque las firmas se desvían de un equilibrio colusivo. Además, exploramos el papel que juega la estructura de mercado en el nivel de dispersión de precios. Nuestros hallazgos sugieren que los cambios en el nivel de dispersión de precios después de un choque de costos son determinados por consumidores que buscan más intensamente por menores precios. También encontramos una relación positiva entre el número de estaciones de servicio en el mercado y que tan dispersos son los precios. Nuestros resultados son robustos a distintas formas de definir el precio y los mercados relevantes. |
| Keywords: | Price dispersion, gasoline markets, wholesale costs, retail prices, Dispersión de precios, mercados de gasolina, costos mayoristas, precios minoristas |
| JEL: | D82 D83 Q49 L11 L94 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdr:borrec:1220&r=ene |
| By: | Rezgar FEIZI; Sahar AMIDI; Thais NUNEZ-ROCHA; Isabelle RABAUD |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:leo:wpaper:2965&r=ene |
| By: | 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); 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) |
| Abstract: | In climate negotiations, developed countries have pledged to help developing countries in their climate change mitigation and adaptation's efforts. Actual climate assistance received is deemed incomplete by recipient countries. The literature indicates that donor countries overestimate the climate change content of their climate aid projects. In this paper, we propose a comprehensive review of bilateral climate aid before focusing on its over-reporting by donor countries. We offer a large set of descriptive statistics based on a previous empirical analysis by Bayramoglu et al. [2022], with the OECD-CRS Database which covers 28 donors, 154 recipients and 63, 195 projects from 2002 to 2018. |
| Abstract: | Dans les négociations climatiques, les pays développés se sont engagés à aider les pays en développement dans leurs efforts d'atténuation et d'adaptation au changement climatique. L'aide climatique est pourtant jugée insuffisante par les pays receveurs. La littérature montre que les pays développés surestiment le contenu climatique des projets qu'ils financent. Nous proposons une revue des aides climatiques bilatérales et de leur surestimation par les pays donateurs en nous appuyant sur l'analyse empirique de Bayramoglu et al. [2022], à partir de la base de données de l'OCDE-CRS qui couvre 28 donateurs, 154 receveurs et 63, 195 projets entre 2002 et 2018. |
| Keywords: | International climate assistance,climate aid,climate change,adaptation,mitigation,project coding |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03832519&r=ene |
| By: | Jargin, Sergei V. |
| Abstract: | This update attempts to analyze social, historical and environmental aspects of the conflict in Ukraine, formulating proposals potentially conductive to peace initiatives and prevention of conflicts. Should the power in Eurasia be displaced to the East, it will come along with losses of values like liberties and human rights. Quality of many services, products and foodstuffs would decline. The environmental protection and energy conservation is less popular in Russia than in other industrialized countries. The reason of the “special military operation” started February 2022 was the anti-separatist activity by the Ukrainian army in Donbas since 2014. In principle, the fight against separatism within national borders is justifiable. Ukraine in her 1991 borders was recognized by all nations including Russia. However, another argumentation is also possible. The Ukraine in today’s borders was created in 1918 disregarding ethnic and linguistic realities. A majority of residents in southern and eastern provinces are Russian-speaking. Many people in Donbas were disappointed that their region had not become a part of the Russian Federation. Recent referendums on occupied territories have been met with skepticism. The Soviet-trained collectivism and mass intimidation influences referendums and elections. Many residents of occupied territories voted for the unification with Russia to avoid personal trouble as they don’t believe that the situation will be reverted. A workable solution would be an international agreement delimitating spheres of influence. Some areas in the East and South of today’s Ukraine should belong to the Russian sphere of influence as the majority of residents are ethnically and linguistically Russians. If the world is becoming multicentric, armed conflicts of various magnitudes may become permanent. A reasonable alternative is a global leadership centered in the most developed parts of the world, based on humanism and modern science. |
| Date: | 2022–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:gez25&r=ene |
| By: | Victor Lavy; Genia Rachkovski; Omry Yoresh |
| Abstract: | Literature has shown that air pollution can have short- and long-term adverse effects on physiological and cognitive performance, leading to adverse outcomes in the labor market. In this study, we estimate the effect of increased nitrogen dioxide (NO₂), one of the primary air pollutants, on the likelihood of accidents in construction sites, a significant factor related to productivity losses in the labor market. Using data from all construction sites and pollution monitoring stations in Israel, we find a strong and significant connection between air pollution and construction site accidents. We find that a 10-ppb increase in NO₂ levels increases the likelihood of an accident by as much as 25 percent. We observe strong nonlinear treatment effects, mainly driven by very high levels of NO₂. The probability of an accident is almost quadrupled when NO₂ levels cross into levels considered by the EPA as “unhealthy” (above the 99th percentile in our sample) compared to levels considered “clean” (below the 95th percentile in our sample). We also implement a set of instrumental variable analyses to support the causal interpretation of the results and present evidence suggestive of a mechanism where the effect of pollution is exacerbated in conditions with high cognitive strain or worker fatigue. Finally, we perform a cost-benefit analysis, supported by a nonparametric estimation and institutional information, which examines the viability of a potential welfare-improving policy to subsidize the closure of construction sites on highly polluted days. |
| JEL: | J01 I10 I15 J24 Q51 Q52 Q53 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30715&r=ene |
| By: | Daniel C. L. Hardy (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Many governments have started issuing ‘green’ bonds tied to expenditures on projects with environmental objectives such as climate change mitigation. While well-intentioned, issuance of a green bond by an investment-grade sovereign has no environmental impact, leaves funding costs unchanged, offers no protection from environmental risks, does little for the healthy development of the market for green financing, and represents poor public sector governance. A performance-linked bond whose payoff depends on overall greenhouse gas emissions would be more transparent, cheaper to administer, and more conducive to long-term policy commitment, but may be politically more demanding and difficult for markets to price. |
| Keywords: | green bond; sustainable finance; sovereign debt; fiscal transparency |
| JEL: | G18 H63 Q58 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:wii:pnotes:pn:62&r=ene |
| By: | David M. Arseneau; Alejandro Drexler; Mitsuhiro Osada |
| Abstract: | This paper applies natural language processing to a large corpus of central bank speeches to identify those related to climate change. We analyze these speeches to better understand how central banks communicate about climate change. By all accounts, communication about climate change has accelerated sharply in recent years. The breadth of topics covered is wide, ranging from the impact of climate change on the economy to financial innovation, sustainable finance, monetary policy, and the central bank mandate. Financial stability concerns are touched upon, but macroprudential policy is rarely mentioned. Direct central bank action largely revolves around identifying and monitoring potential risks to the financial system. Finally, we find that central banks tend to use speculative language more frequently when talking about climate change relative to other topics. |
| Keywords: | Financial stability; Transparency; Central bank mandate; Green finance; Natural language processing; Central bank speeches |
| JEL: | E58 E61 Q54 |
| Date: | 2022–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2022-31&r=ene |
| By: | Caroline Fyfe (Motu Economic and Public Policy Research); Arthur Grimes (Motu Economic and Public Policy Research); Shannon Minehan (Motu Economic and Public Policy Research); Phoebe Taptiklis (Motu Economic and Public Policy Research) |
| Abstract: | We evaluate the heat pump component of New Zealand’s Warmer Kiwi Homes (WKH) programme. The programme includes provision of heat pumps in living areas for eligible households (based on neighbourhood or income) that do not have suitable heating. It also includes installation of retrofitted insulation for houses with insufficient insulation. Staggered installation enables difference-in-difference estimates of impacts. Heat pump outcomes on which we focus include warmth and dryness of the living area, personal comfort and wellbeing, and electricity consumption. We combine the heat pump findings with prior findings related to insulation and heating to provide a set of cost benefit analyses of WKH. We find that household members overwhelmingly report increases in warmth, comfort and satisfaction with their home, and report decreases in condensation, damp and having to restrict heating due to cost. Some increase in life satisfaction is reported. Living areas of treated houses experience increases in temperature which are most pronounced around breakfast and evening times, and when outdoor temperatures are low. Houses also experience reduced humidity. Households that use the heat pump as an air conditioner experience reduced summer temperatures when outdoor temperatures are high. Winter electricity use falls in a house fitted with a heat pump relative to houses without a heat pump; savings are negligible at night and increase through the day, peaking at 5-9pm. No increase in electricity consumption is detected in summer. Benefit cost ratios (BCRs) are calculated using both wellbeing metrics and conventional health and energy components. The wellbeing-based BCR for the heat pump component (which places a high value on living in a warm home) is estimated at 7.49 while the more conventionally calculated (but overly conservative) BCR is 2.15. For the full WKH programme, the corresponding BCRs are calculated as 4.36 and 1.89. Length: 86 pages |
| Keywords: | Heat pumps; indoor temperature; electricity use; wellbeing; Warmer Kiwi Homes |
| JEL: | I18 I31 I38 Q48 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:mtu:wpaper:22_14&r=ene |
| By: | Guo, Xinyu |
| Abstract: | This paper presents a two-stage game of cap-and-trade (CAT) regulated production. We show how quantity-based regulation, in the form of individual production or pollution emissions permits, can function as a credible commitment device allowing firms to coordinate their own-production levels and underproduce the quantity cap set by the regulator. Under strategic underproduction equilibria, consumer surplus and production cost efficiency declines, but industry profits increase. This channel for exercising market power under CAT has been overlooked and requires new regulatory countermeasures. Limiting permit accumulation by individual firms can restore first best efficiency but only under specific industry and cost conditions. We show that a poorly designed ownership limit policy can reduce welfare below levels attained without limits. A case study of the U.S. west coast groundfish fishery which is currently regulated under CAT with strict limits on ownership of fishing permits is presented. Evidence of strategic underproduction is inconclusive. We find current ownership restrictions likely prevent firms from realizing economies of scale in production. Alternate policies to counter strategic underproduction forces are recommended. |
| Date: | 2021–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202112212129530000&r=ene |
| By: | Mac Clay, Pablo; Börner, Jan; Sellare, Jorge |
| Abstract: | Decarbonizing the global energy matrix through investments in renewable energy (RE) is considered a pathway to mitigate the effects of global climate change. Auctions have become an increasingly popular policy instrument for this purpose. In the last few years, auctions have been rapidly adopted by low- and middle-income countries due to their flexibility and several theoretical advantages to mitigate risks deriving from poor business environments. Previous research has used data from higher-income countries and two-way fixed effects models to estimate the effects of auctions on RE capacity, mostly with favorable results. However, none of these studies accounted for heterogeneous treatment effects across units to explore whether auctions are effective in countries with unstable business environments. Here we analyze if auctions can foster RE in countries facing macroeconomic instability or poor institutional quality. For this purpose, we have drawn from multiple publicly available databases to build a panel dataset covering 98 countries for the period 2000-2020. Our definition of RE includes solar, wind, and biomass sources. We show results for each RE source separately and all of them combined. We first cluster countries in terms of the quality of their business environment and then perform a differences-in-differences analysis considering staggered treatment adoption. Our results show that auctions positively affect RE capacity, but average treatment effects are higher for countries with better business environments. Thus, caution is needed in adopting this instrument, especially in countries exposed to macroeconomic or institutional instability. At the same time, dynamic treatment effects suggest that the policy needs time to show results. |
| Keywords: | Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2022–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:ubzefd:329643&r=ene |
| By: | Nakatani, Ryota |
| Abstract: | What drives the productivity dynamics of infrastructure companies? Using a panel of firms in fourteen countries, we study total factor productivity (TFP) enhancers of utility and network services companies. We find that the catching up of TFP with the technological frontier drives productivity growth at higher speeds in Asian countries than in European countries. We also find that financial leverage exerts a positive effect on TFP growth for larger infrastructure firms, and more financially developed countries utilize economies of scale through better use of financial resources. Large utility and transportation companies display a higher rate of TFP growth, indicating that a competition policy to encourage M&As would be prudent for the utility/transportation sectors to maximize economies of scale. In contrast, we find diseconomies of scale for energy companies in some countries. Moreover, young network firms improve TFP growth faster than their peers in countries with fewer product market regulations. Therefore, the policies should remove entry barriers while facilitating the exit of old and low-productivity firms from the network markets. Finally, policymakers should offer well-targeted fiscal incentives for intangible investments to boost TFP because the accumulation of intangible assets such as digital technology promotes more scale economies through network effects. |
| Keywords: | total factor productivity; utility and network services; infrastructure companies; energy industry; transportation industry; (dis)economies of scale; financial leverage; intangible assets |
| JEL: | D24 E22 G38 L25 L87 L9 O34 |
| Date: | 2022–12–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115531&r=ene |
| By: | Singh Tomar, Arun |
| Abstract: | An individual living in a city can take advantage of a wide range of services and opportunities available to them in a broader and more permanent ecosystem of human activity. There is no doubt that cities are experiencing rapid urbanization and population growth. This is putting a lot of pressure on their infrastructures and service delivery systems as a result of this rapid urbanization and growth. It is evident that in order to improve the quality of life in an urban environment as a result of current urbanization, strong strategies and innovative planning are needed. As a result of becoming more digitized, intelligent, and smart, there are several cities around the world that have acquired a better quality of life and improved the efficiency of their urban services. In order for cities to be able to survive in the future, it is more important than ever to diagnose where they stand in terms of sustainability and quality of life for their inhabitants, and to begin building urban resilience to withstand future challenges. Smart cities are not about connectivity and technology; they are about improving the quality of life for city residents in order to achieve a sustainable future. The end goal of smart cities is to have a sustainable future. It is undeniable that smart cities are a compelling case for sustainable development, and there is no doubt about that. In order for any city to become a smart city, it is imperative that we recognize that technology alone will not be sufficient for us to achieve our goal of making it an intelligent city. A smart city will be able to gather a great deal of information about its residents with the installation of different sensors located throughout its community. A variety of methods can be used to achieve this, including the measurement of air quality and the automatic removal of pollutants. |
| Keywords: | Smart cities, internet and mobile cities, sustainable cities, green and IT powered cities, smart sustainable cities, future cities, environment friendly cities. |
| JEL: | F63 I25 Q01 Q56 |
| Date: | 2022–10–16 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115451&r=ene |
| By: | Mads Greaker (Oslo and Akershus University College - Oslo Business School); Tom-Reiel Heggedal (BI Norwegian Business School); Knut Einar Rosendahl (Norwegian University of Life Sciences; Statistics Norway - Research Department) |
| Abstract: | The "resource curse" is a potential threat to all countries relying on export income from abundant natural resources. 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 petroleum can lead to the wrong type of technological progress. 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 lead to a 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. 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 |
| Date: | 2022–10–10 |
| URL: | http://d.repec.org/n?u=RePEc:oml:wpaper:202204&r=ene |
| By: | Jacobus Nel (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Roula Inglesi-Lotz (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | This study investigates the policy environment, specifically the policy ``potholes" (shortcomings), in South Africa and provides policy recommendations to accelerate electric vehicle (EV) adoption in the country. The EV markets in South Africa and Europe in a novel way, to add to the depth of the analysis and associated recommendations. To accomplish this, EV sales are forecasted by fitting an S-curve to the available sales data and assuming a 40 percent market share in 2050. Secondly, the number of years the South African EV market is lagging behind Europe's is estimated, both dynamically and statically. We make policy recommendations in the wake of a detailed analysis of the literature on the effects of policy intervention on EV adoption, the evaluation of the current policy environment, and the comparison. A supply-side policy might be best suited for the country's political environment. |
| Keywords: | electric vehicles in developing countries, market comparison, policy analysis, forecasting technology adoption |
| JEL: | P25 R41 D78 G18 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202257&r=ene |
| By: | Henrique S. Basso, Richard Jaimes, Omar Rachedi,; Richard Jaimes; Omar Rachedi |
| Abstract: | The consumption carbon intensity – defined as the carbon emissions per unit of consumption – varies with age: it is hump-shaped over the life cycle, but it becomes flatter at high levels of income. We document this novel fact using U.S. household-level consumption data. This relationship does not hold only at the individual level, but also at the aggregate: we leverage information across U.S. states and countries to show that the carbon intensity of the economy de- pends on the population age structure. Consequently, policy changes that alter carbon prices affect relatively more middle-age individuals, and especially so in low-income economies. |
| Keywords: | Climate Change, Life Cycle, Carbon Emissions, Demographic Transition. |
| Date: | 2022–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:col:000416:020565&r=ene |
| By: | Clara Kögel (Université Paris 1 Panthéon Sorbonne – Centre d'Économie de la Sorbonne, Organisation de Coopération et de Développement Économiques (OCDE) – Directorate for Science, Technology and Industry (STI)) |
| Abstract: | This paper investigates the effect of air pollution on labour productivity in French establishments in both manufacturing and non-financial market services sectors from 2001 to 2018. An instrumental variable approach based on planetary boundary layer height and wind speed allows identifying the causal effect of air pollution on labour productivity. The finding shows that a 10% increase in fine particulate matter leads, on average, to a 1.5% decrease in labour productivity, controlling for firm-specific characteristics and other confounding factors. The analysis also considers different dimensions of heterogeneity driving this adverse effect. The negative impact of pollution is mainly driven by service-intensive firms and sectors with a high share of highly skilled workers. This finding is in line with the expectation that air pollution affects cognitive skills, concentration, headache, and fatigue in non-routine cognitive tasks. Compared to the marginal abatement cost of PM 2.5 reductions by the Air Quality Directive 2008/50/EC, the estimated gains only from the labour productivity channel could largely offset the abatement cost. All in all, these estimates suggest that the negative impact of air pollution is much larger than previously documented in the literature. |
| Keywords: | Air pollution, Labour productivity, Planetary boundary layer height, |
| JEL: | J24 O13 Q53 Q51 Q52 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2022.10&r=ene |
| By: | Sai Bravo (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique); Carole Haritchabalet (TREE - Transitions Energétiques et Environnementales - UPPA - Université de Pau et des Pays de l'Adour - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper develops a theoretical framework to study the deployment of free-of-emissions green hydrogen in the transport sector. We consider a vertically related market with hydrogen producers upstream and fuel stations downstream. Production technologies differ in cost efficiency and carbon emissions. We show that when consumers have limited information about the hydrogen origin, no new green producers are able to enter the market. A label for green hydrogen allows multiple production technologies to co-exist, but society is better off when producers use vertical restraints to increase consumers' information. |
| Keywords: | Label,Vertical Restraints,Innovation,Hydrogen |
| Date: | 2021–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wptree:hal-03371277&r=ene |
| By: | Vanessa da Cruz (CER-ETH Centre of Economic Research at ETH Zurich, Switzerland) |
| Abstract: | The paper applies the synthetic control method to examine the effects of California’s Cap-and-Trade Program on environmental innovation. The analysis exploits the International Patent Classification system to identify patents relating to environmentally sound technologies. This enables the study to focus on the effects of the policy intervention on green patent filings. A counterfactual is constructed by the combination of other states in the US which allows the comparison of patent applications in California to the estimated counterfactual situation in the absence of a Cap-and-Trade program. The study finds that the number of patents related to green technologies increased by approximately 22.5% after the passing of the Cap-and-Trade regulation. This result is robust to alternative specifications of the synthetic control method. |
| Keywords: | Induced Innovation, Environmental Policy, Climate Change, California Cap-and-Trade Program |
| JEL: | Q55 Q58 O31 O38 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:22-377&r=ene |
| By: | Leonard Emmanuel Mwassa; Sophia Marcian Kongela |
| Abstract: | The environmental pollution contributed to by the building construction sub-sector in Tanzania is significantly soaring by the day, making it difficult for the country to align to the expectations of the Global Development Agenda, 2015. This article focuses on the establishment of environmental importance weightings for local green building standard elements in Tanzanian, to be able to match the pace at which the global green building sector is moving. Emanating from the use of a Relative Importance Index (RII) analysis, the study found that, similar to the global practice of green building cornichons, which assign more environmental weighing to energy efficiency in green buildings, the same way have the RIIs of the examined Tanzanian Green Building Assessment criteria identified energy efficiency (with the highest environmental importance weighing given by RII = 0.78039216) as the most important ingredient of green building. Although it is not the case in other global green building certifications, for the case of Tanzanian Green Building Standard elements, Water Efficiency and rainwater harvesting, as well as on-site waste management and environmental conservation emerged as the twin-second best elements (receiving the same environmental weighng given by RII = 0.76470588. On the other hand, the study revealed that Building Automation and the Internet of things (in other words referred to as innovation in buildings) as the least environmentally important element with the lowest environmental weight given by the RII = 0.61568627, which in some ways confirms and questions the environmental weighings allocated to 'innovation' green element by the most prominent global green building certifications such as LEED, BREEAM, Green Star Australia, Green Star SA, and Green Mark. |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:2022-015&r=ene |
| By: | Georgij Alekseev; Stefano Giglio; Quinn Maingi; Julia Selgrad; Johannes Stroebel |
| Abstract: | We propose a new methodology to build portfolios that hedge the economic and financial risks from climate change. Our quantity-based approach exploits information on how mutual fund managers trade in response to idiosyncratic changes in their climate risk beliefs. We exploit two types of idiosyncratic belief shocks: (i) instances when fund advisers experience local extreme heat events that are known to shift climate change beliefs, and (ii) instances when fund managers change the language in shareholder disclosures to express concerns about climate risks. We use the funds’ observed portfolio changes around such idiosyncratic belief shocks to predict how investors will reallocate their capital in response to aggregate climate news shocks that shift the beliefs and asset demands of many investors and thus move equilibrium prices. We show that a portfolio that is long stocks that investors tend to buy after experiencing negative idiosyncratic climate belief shocks, and short stocks that investors tend to sell, appreciates in value in periods with negative aggregate climate news shocks. Our quantity-based portfolios have superior out-of-sample hedge performance compared to portfolios constructed using existing alternative methods. The key advantage of the quantity-based approach is that it learns from rich cross-sectional trading responses rather than time-series price information, which is particularly limited in the case of newly emerging risks such as those from climate change. We also demonstrate the versatility of the quantity-based approach by constructing successful hedge portfolios for aggregate unemployment and house price risk. |
| JEL: | G10 G11 G12 G14 Q50 Q54 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30703&r=ene |
| By: | K Mlaouhi (G-SCOP_SIREP - Système d’Information, conception RobustE des Produits - G-SCOP - Laboratoire des sciences pour la conception, l'optimisation et la production - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); C Cholez (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes); L Gzara (DISP - Décision et Information pour les Systèmes de Production - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées) |
| Abstract: | The digital transformation of organizations, in the era of Industry 4.0, has profoundly renewed industrial work including design, production and distribution. With such an evolution, actors would learn a lot and redefine many formal (operating methods, procedures, processes, methods) and informal (corrections/remedies, local regulations, skills, etc.) working practices. Competencies are at the heart of these learnings and practices. Sociologists, psychologists, ergonomists and engineers have tried to define and characterize "competency" for its better identification and evaluation. Most of these researchers agree that competencies are difficult to identify but could be determined by inferring them through observation and traceability of human actions-those being more or less representative of reality. However, this identification process requires upstream relevant competency modeling in order to better interpret the collected competencies' traces and then confront them with peers to access the judgment on competencies. The authors of this paper rely on a presentation of concepts from different disciplines to define competency, emphasize its link to action and propose an action-based competency model. An example observed in a Company is detailed to validate the proposed model. At the end of the paper, we identify six situational mechanisms of articulation between material, immaterial and the actor's personal resources, necessary for competencies deployment and construction. |
| Keywords: | Competency modeling,action,trace,industry 4.0,human-centered organization Competency modeling,human-centered organization |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03842374&r=ene |
| By: | Gert Peersman; Joris Wauters (-) |
| 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 find that the price elasticity is significantly larger for price increases than price decreases and diminishes heavily for greater price hikes. The elasticity is also larger for households undertaking major home renovations over the next months, and smaller for families with more appetite to consume. For the MPC, we document greater responses of non-energy consumption when energy prices increase compared to price decreases. MPCs are also larger for households with low income and/or saving buffer, and households reporting their future financial situation is difficult to predict. Finally, we show that targeted price subsidies on energy for Belgian low-income households are much more effective in supporting non-energy consumption than the general VAT reduction on energy prices. |
| JEL: | D12 E21 H31 Q41 Q43 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:rug:rugwps:22/1058&r=ene |
| By: | Mads Greaker (Oslo Business School, Oslo Metropolitan University); David Popp (Syracuse University) |
| Abstract: | This paper provides a primer on the economics of environmental innovation. Our intention is not to write a pure review paper, but to also provide an up-to-date textbook treatment on the issue. Thus, we start by defining the marginal costs of both emissions and of emissions abatement. We then analyze theoretically how innovation may affect marginal abatement costs. We also cover the different modelling choices with respect to how the innovation process is represented mathematically and how different environmental policy measures could affect environmental innovation. Our theoretical propositions are all illustrated with examples from the empirical literature. A special emphasis is placed on the recent literature on directed technical change and the potential impact of government intervention in the research and development choices of private firms. |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:oml:wpaper:202203&r=ene |
| By: | Daniel Albalate ((GiM-IREA). Observatori d’Anàlisi i Avaluació de Polítiques Públiques. Facultat d’Economia i Empresa. Universitat de Barcelona. Departament d’Econometria Estadística i Economia Aplicada. Secció Polítiques públiques. John Maynard Keynes 1-11, Torre 6, planta 3. 08034 Barcelona. Tel: +34.493031131); Xavier Fageda ((GiM-IREA). Observatori d’Anàlisi i Avaluació de Polítiques Públiques. Facultat d’Economia i Empresa. Universitat de Barcelona. Departament d’Econometria Estadística i Economia Aplicada. Secció Polítiques públiques. John Maynard Keynes 1-11, Torre 6, planta 3. 08034 Barcelona. +34.93.4039721) |
| Abstract: | This paper provides a bridge between the literature on the effects of the pandemic on mobility and the literature on low emission zones (LEZ) impacts. Using data for large European cities in the period 2018-2021, we examine whether LEZ may explain differences in the recovery patterns of traffic in European cities after the covid shock. Controlling for several city attributes, we examine whether LEZ cities are less congested before and after the pandemic in comparison to non-LEZ cities. Our hypothesis is that LEZ may have been more effective in reducing congestion after the pandemics because the fleet renewal process has slowed down. Our results validate the traffic mitigating role of LEZ, which is robust to the lasting effects of Covid-19. |
| Keywords: | Low Emission Zones, Congestion, Traffic, Access restrictions, Sustainability, Cities. JEL classification: R41, R11, R52. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:ira:wpaper:202222&r=ene |
| By: | Santeramo, Fabio Gaetano; Delsignore, Monica; Imbert, Enrica; Lombardi, Mariarosaria |
| Abstract: | The bioenergy sector is becoming of increasing interest: the European Union (EU) is not an exception, as, indeed, is in need of solutions to face one of the worst energy crises of the last century. The sector’s growth faces numerous challenges. The main use of energy crops, as feedstock, generates stiff competition on the use of land for food and energy purposes. The production of bioenergy has relevant environmental implications in terms greenhouse gas emissions. The social aspects related to the bioenergy sector are also potential obstacles to its development. These pressing issues for policymakers call for a better understanding on how national and international laws should regulate the growth of the bioenergy sector. Flying over the economic, environmental, social, and legislative aspects faced by the bioenergy sector, we conclude on threads, opportunities and priorities that should be considered for its development and propose directions for future studies. |
| Keywords: | Bioenergy, European Union, Impact, Land use, Law, Sustainability |
| JEL: | K32 Q18 Q42 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115454&r=ene |
| By: | Finke, Jonas; Bertsch, Valentin |
| Abstract: | In order to mitigate climate change, the energy sector undergoes a transformation towards a climate-neutral future based on renewable energy sources. Energy system models generate insights and support decision making for this transformation. In the face of, e.g., growingly complex and important environmental assessments and stakeholder structures, considering multiple objectives in these models becomes essential to realistically reflect existing interests. However, there is a lack of highly adaptable energy system models incorporating multiple objectives. We present an implementation of the augmented epsilon-constraint method with the highly adaptable energy system optimisation framework Backbone. It enables the simultaneous optimisation of multiple objectives, such as the minimisation of costs, CO2 emissions or self-sufficiency for a broad range of energy systems including different sectors and scales. For this purpose, new objective functions and constraints are implemented in Backbone. They are used by an external algorithm in a sequence of parallelised optimisations to cope with the complexity of real-world applications. The method is adaptable to further objectives and scalable to large and complex systems. Applications to the Western and Southern European power sector in 2050 and a sector-coupled mixed- integer household-level model demonstrate its benefits and adaptability. Pareto fronts, technology use and trade-offs are analysed and quantified. In the European power sector, emission reductions of up to 90 % can be achieved at marginal CO2 abatement costs of below 100 EUR/(t CO2). For the household, energy imports from the public grids can be reduced by 70 % at 20 % higher cost and average cost of self-sufficiency of 2.6 ct/kWh. We expect that the presented methods and models reveal new valuable insights to modellers and decision makers. |
| Keywords: | Energy system modeling; Multi-objective optimization; Renewable energy; Energy planning; Pareto front; Trade-off |
| JEL: | C6 C61 Q4 Q41 Q48 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115504&r=ene |
| By: | : Annicciarico, Barbara (Universita degli Studi di Roma Tor Vergata); : Di Dio, Fabio (European Commission); : Dilusio, Francesca (Bank of England) |
| Abstract: | This paper studies the role of expectations and monetary policy on the economy’s response to climate actions. We show that in a stochastic environment and without the standard assumption of perfect rationality of agents, there is more uncertainty regarding the path and the economic impact of a climate policy, with a potential threat to the ability of central banks to maintain price stability. Market beliefs and behavioural agents increase the trade-offs inherent to the chosen mitigation tool, with a carbon tax entailing more emissions uncertainty than in a rational expectations model and a cap-and-trade scheme implying a more pronounced pressure on allowances prices and inflation. The impact on price stability is worsened by delays in the implementation of stringent climate policies, by the lack of confidence in the ability of central banks to keep inflation under control, and by the adoption of monetary rules tied to expectations rather than current macroeconomic conditions. Central banks can implement successful stabilization policies that reduce the uncertainty surrounding the impact of climate actions and support the greening process while staying within their mandate. |
| Keywords: | Monetary policy; climate policy; expectations; inflation; market sentiments; business cycle |
| JEL: | D58 Q50 E32 E71 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:jrs:wpaper:202214&r=ene |