nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒01‒09
94 papers chosen by
Roger Fouquet
London School of Economics

  1. Climate Policy Curves: Linking Policy Choices to Climate Outcomes By Martin C. Hänsel; Michael D. Bauer; Moritz A. Drupp; Gernot Wagner; Glenn D. Rudebusch
  2. Policies to reach net zero emissions in the United Kingdom By Jon Pareliussen; David Crowe; Tobias Kruse; Daniela Glocker
  3. The Environmental Impact of a Pro-Environment International Governmental Meeting: Evidence from Italy By Vincenzo Alfano; Giuseppe Lucio Gaeta
  4. Emissions of Carbon Dioxide in the Electric Power Sector By Congressional Budget Office
  5. Emissions of Carbon Dioxide in the Transportation Sector By Congressional Budget Office
  6. Wind power decreases the need for storage in an interconnected 100% renewable European power sector By Alexander Roth; Wolf-Peter Schill
  7. High and Dry: Stranded Natural Gas Reserves and Fiscal Revenues in Latin America and the Caribbean By Welsby, Dan; Solano-Rodriguez, Baltazar; Pye, Steve; Vogt-Schilb, Adrien
  9. Europe and the Eastern Mediterranean: The potential for hydrogen partnership By Ruseckas, Laurent
  10. 인도네시아 탄소 중립 대응 정책과 한국의 그린뉴딜과의 협력 방안(Analysis on Net-Zero Policy of Indonesia and It’s Implication for Korean Green New Deal Policy) By Lee, Jaeho
  11. European Economic Impacts of Cutting Energy imports from Russia : a Computable General Equilibrium Analysis By Sirgit Perdana; Marc Vielle; Maxime Schenkery
  12. Energy shocks in the Euro area: disentangling the pass-through from oil and gas prices to inflation By Casoli, Chiara; Manera, Matteo; Valenti, Daniele
  13. Can electricity liberalisation foster the development of radical clean-energy technologies? By Romagnoli, Matteo
  14. Renewable Energy and Community Development By Zapata, Oscar
  15. US power sector carbon capture and storage under the Inflation Reduction Act could be costly with limited or negative abatement potential By Grubert, Emily; Sawyer, Frances
  16. The challenge of decarbonisation and EU-Turkey trade relations: A long-term perspective By Tastan, Kadri
  17. Solutions to Combat Anthropogenic Climate Change Impacts: A Review of “Drawdown” By Rouhani, Omid; Moradi, Ehsan; Do, Wooseok; Bai, Song; Farhat, Antoine
  18. How deep are the deep parameters? By Fabrizio Ferriani; Andrea Gazzani
  19. Regulating Untaxable Externalities: Are Vehicle Air Pollution Standards Effective and Efficient? By Mark R. Jacobsen; James M. Sallee; Joseph S. Shapiro; Arthur A. van Benthem
  20. Electrolysers for the hydrogen revolution: Challenges, dependencies, and solutions By Ansari, Dawud; Grinschgl, Julian; Pepe, Jacopo Maria
  21. Managerial and financial barriers to the net-zero transition By Ralph De Haas; Martin, Ralf; Muûls, Mirabelle; Schweiger, Helena
  22. Do Investors Care about Carbon Risk? A Global Perspective By Zhang, Shaojun
  23. Regulating Untaxable Externalities: Are Vehicle Air Pollution Standards Effective and Efficient? By Shapiro, Joseph S.
  24. What Explains the Reduction of Greenhouse Gas Emissions of the Finland’s Manufacturing Sector? By Kuosmanen, Natalia; Maczulskij, Terhi
  25. Carbon taxes and the geography of fossil lending By Laeven, Luc; Popov, Alexander
  26. The impact of carbon taxation and revenue redistribution on poverty and inequality By Malerba, Daniele; Chen, Xiangjie; Feng, Kuishuang; Hubacek, Klaus; Oswald, Yannick
  27. How large is the energy savings potential in the UK? By Fetzer, Thiemo; Gazze, Ludovica; Bishop, Menna
  28. Air Pollution and Entrepreneurship By Guo, Liwen; Cheng, Zhiming; Tani, Massimiliano; Cook, Sarah; Zhao, Jiaqi; Chen, Xi
  29. Pricing Climate Risk By Svenn Jensen; Christian P. Traeger
  30. Local economic impacts of wind power deployment in Denmark By Gavard, Claire; Göbel, Jonas; Schoch, Niklas
  31. How to ensure a just approach to retrofitting social housing? By Jan Frankowski; Joanna Mazurkiewicz; Jakub Soko³owski
  32. Asymmetries in the oil market: Accounting for the growing role of China through quantile regressions. By Valérie Mignon; Jamel Saadaoui
  33. Renewable energy communities, digitalization and information By Dirk Bergemann; Marina Bertolini; Marta Castellini; Michele Moretto; Sergio Vergalli
  34. Preparatory study of Ecodesign and Energy Labelling measures for domestic cooking appliances By RODRIGUEZ QUINTERO Rocio; BERNAD BELTRAN David; RANEA PALMA Maria; DONATELLO Shane; VILLANUEVA KRZYZANIAK Alejandro; PARASKEVAS Dimos; BOYANO LARRIBA Alicia; STAMMINGER Rainer
  35. The Power of Perception: Limitations of Information in Reducing Air Pollution Exposure By Hanna, Rema; Hoffmann, Bridget; Oliva, Paulina; Schneider, Jake
  36. The Role of Firm Dynamics in the Green Transition: Carbon Productivity Decomposition in Finnish Manufacturing By Kuosmanen, Natalia; Maczulskij, Terhi
  37. Fickle Fossils. Economic Growth, Coal and the European Oil Invasion 1900-2015 By Miriam Fritzsche; Nikolaus Wolf
  38. What drives the relationship between digitalization and industrial energy demand? Exploring firm-level heterogeneity By Axenbeck, Janna; Berner, Anne; Kneib, Thomas
  39. Developing a Model for Consumer Management of Decentralized Options By Frings, Cordelia; Helgeson, Broghan
  40. Non-Linear Distance Decay Effects of Clean Energy Facilities in Housing Rental and Sale Markets: Evidence from Hydrogen Refueling Stations By Shuya Wu; Arash Farnoosh; Yingdan Mei
  41. Effects of Low Emission Zones on Air Quality, New Vehicle Registrations, and Birthweights: Evidence from Japan By NISHITATENO Shuhei
  42. Data and methods to evaluate climate-related and environmental risks in Italy By Luciano Lavecchia; Jacopo Appodia; Paolo Cantatore; Rita Cappariello; Stefano Di Virgilio; Alberto Felettigh; Andrea Giustini; Valeria Guberti; Danilo Liberati; Giorgio Meucci; Stefano Piermattei; Federico Schimperna; Katia Specchia
  43. 유럽 주요국 녹색당의 성공 및 실패 요인 분석(Determinants of Success and Failure of Green Parties in Europe) By Joe, Dong-Hee; Jang, Youngook; Lee, Hyun Jean; Yoon, Hyung Jun
  44. How Regressive are Mobility-Related User Fees and Gasoline Taxes? By Edward L. Glaeser; Caitlin S. Gorback; James M. Poterba
  45. Climate change mitigation: How effective is green quantitative easing? By Abiry, Raphael; Ferdinandusse, Marien; Ludwig, Alexander; Nerlich, Carolin
  46. THE EUROPEAN WHOLESALE ELECTRICITY MARKET: FROM CRISIS TO NET ZERO By Willems, Bert; Pollitt, Michael; von der Fehr, Nils-Henrik; Banet, Catherine
  47. Renewable energy communities, digitalization and information By Bergemann, Dirk; Bertolini, Marina; Castellini, Marta; Moretto, Michele; Vergalli, Sergio
  48. On the identification of the oil-stock market relationship By Ioannis Arampatzidis; Theodore Panagiotidis
  49. Assessment of Energy Efficiency Investment in Onitsha Business Cluster, Nigeria By Stephen K. Dimnwobi; Ebele S. Nwokoye; Clement I. Igbanugo; Chukwunonso Ekesiobi; Simplice A. Asongu
  50. Asymmetry and Interdependence when Evaluating U.S. Energy Information Administration Forecasts By Garratt, Anthony; Petrella, Ivan; Zhang, Yunyi
  51. Rooftop Solar with Net Metering: An Integrated Investment Appraisal By Majid Hashemi; Glenn Jenkins; Frank Milne
  52. The effect of rising energy prices amid geopolitical developments and supply disruptions By Hilde C. Bjørnland
  53. A cost-of-living squeeze? Distributional implications of rising inflation By Orsetta Causa; Emilia Soldani; Nhung Luu; Chiara Soriolo
  54. Retail Energy Markets Under Stress : LESSONS LEARNT FOR THE FUTURE OF MARKET DESIGN By Willems, Bert; von der Fehr, Nils-Henrik; Banet, Catherine; Pollitt, Michael; Le Coq, Chloé
  55. Does monetary policy impact CO2 Emissions? A GVAR analysis By Luccas Assis Attilio; Joao Ricardo Faria, Mauro Rodrigues
  56. Building downstream capacity for critical minerals in Africa: Challenges and opportunities By Cullen S. Hendrix
  57. Breathe Easy, There's an App for That: Using Information and Communication Technology to Avoid Air Pollution in Bogotá By Blackman, Allen; Hoffmann, Bridget
  58. How it can be done By Rüdiger Bachmann; David Baqaee; Christian Bayer; Moritz Kuhn; Andreas Löschel; Ben Mcwilliams; Benjamin Moll; Andreas Peichl; Karen Pittel; Moritz Schularick; Georg Zachmann
  59. Peer-to-peer solar and social rewards: Evidence from a field experiment By Stefano Carattini; Kenneth Gillingham; Xiangyu Meng; Erez Yoeli
  60. Quantity restrictions and price discounts on Russian oil By Henrik Wachtmeister; Johan Gars; Daniel Spiro
  61. Congestion management games in electricity markets By Ehrhart, Karl-Martin; Eicke, Anselm; Hirth, Lion; Ocker, Fabian; Ott, Marion; Schlecht, Ingmar; Wang, Runxi
  62. L’acceptabilité sociale des politiques environnementales avant le mouvement des Gilets jaunes By Blanc, Corin
  63. Quantifying COVID-19’s Silver Lining: Avoided Deaths from Air Quality Improvements in Bogotá By Blackman, Allen; Bonilla, Jorge Alexander; Villalobos, Laura
  64. Evaluation of low traffic neighbourhood (LTN) impacts on NO2 and traffic By Yang, Xiuleng; McCoy, Emma; Hough, Katherine; de Nazelle, Audrey
  65. International Environmental Agreements When Countries Behave Morally By Thomas Eichner; Rüdiger Pethig
  66. 글로벌 기후금융의 현황과 발전방향: 녹색채권을 중심으로(Current Development and the Future of Global Climate Finance: Focusing on Green Bonds) By An, Jiyoun; Park, Bokyeong; Bae, Yujin; Ahn, Hyeji; Ha, Kiwook
  67. A review of macroeconomic models for the WEFE nexus assessment By Chiara Castelli; Marta Castellini; Emanuele Ciola; Camilla Gusperti; Ilenia Gaia Romani; Sergio Vergalli
  68. Advancing Road User Charge (RUC) Models in California: Understanding Social Equity and Travel Behavior Impacts By Lazarus, Jessica; Broader, Jacquelyn; Cohen, Adam; Bayen, Alexandre PhD; Shaheen, Susan PhD
  69. Inequality in exposure to air pollution in France: bringing pollutant cocktails into the picture By Camille Salesse
  70. Impact of COVID‑19 Activity Restrictions on Air Pollution: Methodological Considerations in the Economic Valuation of the Long‑Term Effects on Mortality By Olivier Chanel
  71. Tax Holidays and the Heterogeneous Pass-Through of Gasoline Taxes By Tsvetan Tsvetanov
  72. How Can We Improve Air Pollution?: Try Increasing Trust First By Cafferata, Fernando G.; Hoffmann, Bridget; Scartascini, Carlos
  73. Unconventional Oil and Gas Development and Agricultural Land-use in the U.S. By Xu, Yuelu; Elbakidze, Levan; Etienne, Xiaoli
  74. Lost in transition? Earnings losses of displaced petroleum workers By Jon Ellingsen; Caroline Espegren
  75. Blue and turquoise hydrogen: bridge options or mirage? By Kimon Keramidas; Silvana Mima; Adrien Bidaud-Bonod
  76. The impact of the 2018 Families Package Winter Energy Payment policy. By Dean Hyslop; Lynn Riggs; David Maré
  77. Cap or No Cap? What Can Governments Do to Promote EV Sales? By Zunian Luo
  78. Exporting and Environmental Performance: Where You Export Matters By Blyde, Juan S.; Ramírez, Mayra A.
  79. Are Transportation Solutions Doomed to Fail Climate-Change Actions? A Book Review By Rouhani, Omid
  80. Environmental Assessments within Green Budgeting By Simona Pojar
  81. Understanding the Political Economy of South Africa’s Carbon Tax By Baker, Lucy
  82. How to Make the Management of Public Finances Climate-Sensitive–“Green PFM” By Murray Petrie; Mr. Fabien Gonguet; Ozlem Aydin Sakrak; Bryn Battersby; Jacques Charaoui; Mr. Claude P Wendling
  83. Climate Stress Test of the Hungarian Banking System By Laszlo Bokor
  84. The Possible Implications of the Green Transition for the EU Labour Market By Anneleen Vandeplas; Istvan Vanyolos; Mauro Vigani; Lukas Vogel
  85. Stock-Oil Comovement: Fundamentals or Financialization? By Melone, Alessandro; Randl, Otto; Sogner, Leopold; Zechner, Josef
  86. Footprint of Export-Related GHG Emissions from Latin America and the Caribbean By Li, Kun
  87. Synergies and trade-offs in the transition to a resource-efficient and circular economy By Linda Livingstone; Peter Börkey; Rob Dellink; Frithjof Laubinger
  88. Energy Poverty, Environmental Degradation and Agricultural Productivity in Sub-Saharan Africa By Stephen K. Dimnwobi; Kingsley I. Okere; Favour C. Onuoha; Chukwunonso Ekesiobi
  89. A Theory of Pledge-and-Review Bargaining By Harstad, Bård
  90. The Municipal Role in Climate Policy By Elliott Cappell; Sadhu Johnston; Jennifer Winter; Gabriel Eidelman; Tomas Hachard; Ruth Rosalle
  91. Energie aus Wind und Sonne: Welche Fachkräfte brauchen wir? By Koneberg, Filiz; Jansen, Anika; Kutz, Vico
  92. Herausforderungen in der Finanzierung der Energiewende und Rolle des Risikokapitals By Köppl-Turyna, Monika; Köppl, Stefan; Bittó, Virág
  93. Understanding Factors Influencing Willingness to Ridesharing Using Big Trip Data and Interpretable Machine Learning By Li, Ziqi
  94. The long-run economics of sustainable orbit use By Julien Guyot; Akhil Rao; Sebastien Rouillon

  1. By: Martin C. Hänsel; Michael D. Bauer; Moritz A. Drupp; Gernot Wagner; Glenn D. Rudebusch
    Abstract: The extent of future climate change is a policy choice. Using an integrated climate-economy assessment model, we estimate climate policy curves (CPCs) that link the price of carbon dioxide (CO2) to subsequent global temperatures. The resulting downward sloping CPCs quantify the inverse relationship between carbon prices and future temperatures and illustrate how climate policy choices determine climate outcomes. Our analysis can account for a variety of climate policies—for example, carbon or fuel taxes, emissions trading programs, green subsidies, and energy-efficiency regulations—all of which can be summarized by means of an effective CO2 price. Importantly, we also examine CPC uncertainty, for example, by perturbing the model’s equilibrium climate sensitivity to trace out the temperature range associated with a given CO2 price. Finally, based on the latest Intergovernmental Panel on Climate Change (IPCC) integrated-assessment model scenarios, we estimate an implicit CPC, which provides a high-level IPCC summary of the climate policy actions required to achieve global climate targets.
    Keywords: climate policy, carbon tax, climate-economy models, model comparison
    JEL: Q54 Q58
    Date: 2022
  2. By: Jon Pareliussen; David Crowe; Tobias Kruse; Daniela Glocker
    Abstract: The United Kingdom is among world leaders in reducing domestic greenhouse gas emissions, and a broad political consensus supports the target to reduce net emissions to zero by 2050. The UK’s strong institutional framework is an inspiration to countries around the world, and the country is pioneering work to embed climate considerations in the financial sector. Achieving carbon neutrality will require policy to match ambition. Emission reductions so far were largely driven by electricity generation, a sector targeted by explicit pricing instruments and a cost efficient renewables auction-design subsidy scheme. Expanding pricing instruments across the economy is an essential building block to reach targets. Such measures will be more effective if complemented by well-designed sectoral regulation and subsidies, and more acceptable if implemented once energy prices have started to come down from historically high levels. Britons are conscious of the need to act. However, winning their acceptance of the needed policies may require targeting carbon revenue to compensate low-income households and investments in green infrastructure and new technologies. A mechanism defusing fears that effective policies undermine competitiveness, preferably internationally agreed, would facilitate effective policies towards emission intensive trade exposed industries.
    Keywords: Climate policy, green investment, redistribution
    JEL: H23 H31 H32 Q52 Q58
    Date: 2022–12–19
  3. By: Vincenzo Alfano; Giuseppe Lucio Gaeta
    Abstract: This note contributes to the literature on the air pollution consequences determined by hosting mega-events. An econometric analysis is provided to document the increase in air pollution observed in Naples (Italy) during the G20 Ministerial meeting on the Environment, Climate, and Energy carried out in July 2021. Such evidence contributes to understanding the potential costs of mega-events in a metropolitan area with low air quality and high private car density. Findings suggest that mega-events cause a decrease in air quality. Therefore, we suggest to organize mega-event outside cities. The media coverage would not be lowered by this policy, and on the contrary it could be a useful occasion to re-discover inner, less urbanized area.
    Keywords: G20 meeting, mega-event, pollution
    JEL: Q51 Q53
    Date: 2022
  4. By: Congressional Budget Office
    Abstract: The electric power sector accounts for about 30 percent of U.S. emissions of carbon dioxide (CO2), the most common greenhouse gas. Although demand for electricity is projected to increase as the economy grows and as other sectors rely more heavily on it, the amount of CO2 emitted in producing electricity is likely to decline because that sector has relatively low-cost methods of reducing those emissions.
    JEL: H23 Q48 Q58
    Date: 2022–12–13
  5. By: Congressional Budget Office
    Abstract: The largest source of emissions of carbon dioxide (CO2, the most common greenhouse gas) in the United States is the transportation sector. Emissions from transportation surpassed emissions from the electric power sector five years ago and now constitute two-fifths of domestic emissions from burning fossil fuels. In this report, CBO provides an overview of CO2 emissions in the transportation sector, describing the sources of and trends in such emissions and projecting their future path.
    JEL: H23 H54 Q48 Q58 R42 R48
    Date: 2022–12–13
  6. By: Alexander Roth; Wolf-Peter Schill
    Abstract: The massive expansion of wind power and solar PV is the primary strategy to reduce greenhouse gas emissions in many countries. Due to their variable generation profiles, power sector flexibility needs to increase. Geographical balancing enabled by electricity grids and temporal flexibility enabled by electricity storage are important options for flexibility. As they interact with each other, we investigate how and why interconnection with neighboring countries reduces storage needs. To do so, we apply a cost-minimizing open-source capacity expansion model to a 100% renewable energy scenario of central Europe. We use a factorization method to disentangle the effect of interconnection on optimal storage through distinct channels: differences in (i) countries' solar PV and wind power capacity factors, (ii) load profiles, as well as (iii) hydropower and bioenergy capacity. Results show that geographical balancing lowers aggregate storage capacities by around 30% in contrast to a similar system without interconnection. We further find that the differences in wind power profiles between countries explain, on average, around 80% of that effect. Differences in solar PV capacity factors, load profiles, or country-specific capacities of hydropower together explain up to 20%. Our analysis improves the understanding of the benefits of geographical balancing for providing flexibility and its drivers.
    Date: 2022–11
  7. By: Welsby, Dan; Solano-Rodriguez, Baltazar; Pye, Steve; Vogt-Schilb, Adrien
    Abstract: The global low-carbon energy transition driven by technological change and government plans to comply with the Paris Agreement makes future gas demand, prices, and associated public revenues uncertain. We assess the prospects for natural gas production and public revenues from royalties and taxation of gas production in Latin American and the Caribbean under different levels of climate policy. We derive demand from a global energy model, and supply from a global natural gas field model and a global oil field model – for associated gas. We find that natural gas production and associated public revenue are strongly impacted by decarbonization efforts. The more stringent climate policy is, the lower the production of natural gas. Exporting natural gas from Latin America and the Caribbean does not help the rest of the world reduce greenhouse gas emissions. In scenarios consistent with limiting global warming well-below 2°C, incumbent producers and natural gas associated with oil dominate production, drastically limiting opportunities for new gas production in the region and increasing the amount of gas left in the ground. Reduced demand for gas produced from Latin America and the Caribbean is mainly driven by falling demand in the region itself, as energy demand in buildings, industry, and transportation shift towards electricity produced from zero-carbon sources. Cumulative public revenues from natural gas extraction by 2035 range between 42 and 200 billion USD. The lower end of the range reflects scenarios consistent with below 2°C warming. In this case, up to 50% of proven, probable, and possible (3P) reserves in the region (excluding Venezuela) remain unburnable – the paper provides estimates by country. Our findings confirm that governments cannot rely on revenues from gas extraction if the objectives of the Paris Agreement are to be met. Instead, they need to diversify their fiscal and export strategy away from dependence on gas production. More generally, climate objectives, energy policies and fiscal strategies need to be consistent.
    Keywords: net-zero;transition risk;unburnable carbon;climate change mitigation
    JEL: Q32 Q35 Q54 Q56 Q58 O13 H23 H27
    Date: 2021–10
  8. By: Ferdiawan, Bagas Fitra
    Abstract: The need for energy in the form of fuel oil is increasing every time. The engine is diesel-fueled. However, the availability is not in accordance with the needs because it still comes from fossil energy that cannot be renewed. Then there is need to solution for further action to overcome this problem, which is the use of a mixture of diesel fuel with corn oil . Between the use of pure diesel fuel and biodiesel corn oil. The method of this research is to conduct experiments. Beginning with the incorporation of diesel fuel raw materials with oil, which will also be used as experimental materials in diesel engines which will also be used for electrical circuit currents from up to 4000 watts when the engine is turned on. The result show that the use of corn oil can affect the performance of diesel engine, such as is more efficient than the average diesel fuel, the torque and energy generated is greater reaching an average of 54% greater in load maximum, higher total engine efficiency up to 2 times as much, and is economically not too significant for use in the long run. Therefore, it can be concluded that the effect of adding corn oil as an alternative fuel is a solution that can overcome the problems of the fossil fuels and also have a good impact on the performance of diesel engines.
    Date: 2022–11–18
  9. By: Ruseckas, Laurent
    Abstract: Low-carbon hydrogen has emerged as an important component of EU decarbonisation plans. It also adds a new element to the EU's external energy policy, given that a substantial share of Europe's future hydrogen requirements will need to be met with imports. In this context, the Eastern Mediterranean region stands out as a potential supplier of low-carbon hydrogen for Europe owing to its proximity and its large renewable energy potential. Energy cooperation in this region has focused on natural gas development in recent years but synergies could be possible if this cooperation extended to hydrogen development - both for exports and domestic decarbonisation.
    Keywords: low-carbon hydrogen,EU,Eastern Mediterranean,decarbonisation,renewable energy,Carbon Border Adjustment Mechanism (CBAM),liquefied natural gas (LNG)
    Date: 2022
    Abstract: 기후변화 위기에 대처하기 위한 국제사회의 논의가 지속되는 가운데 탄소 배출 순위 세계 8위, 아세안 1위인 인도네시아는 COP26에 2030년까지 무조건 29%, 조건 41%의 국가온실가스감축안(NDC: Nationally Determined Contribution)을 제출하고, 탄소 중립 달성 기한을 2060년으로 발표한 바 있다. 인도네시아는 한국 신남방정책의 핵심 파트너로 한국의 K-뉴딜 글로벌화 전략을 통해 마이크로그리드 유망시장으로 선정된 바 있으나, 인도네시아의 탄소 중립 정책을 참고한 포괄적인 협력 정책은 아직 마련되지 못한 상황이다. 이에 본 연구는 인도네시아의 탄소 중립 관련 정책 및 국제협력 현황에 대한 분석을 기반으로 한국·인도네시아 탄소 중립 협력 방향을 제시했다.(the rest omitted) <p> While the international community has been engaged in dialogue on countermeasures to climate change by global warming, Indonesia, which ranked 8th in the world in Co2 emissions and top in ASEAN, has submitted its nationally determined contribution (NDC) targets of unconditional reduction of 29% and conditional reduction of 41% by 2030, and announced the net zero target by 2060. Indonesia is a core partner of Korea’s New Southern Policy and has been identified as a promising market for micro-grid projects in the K-New Deal Globalization Strategy, but as of yet no comprehensive strategy has been established that takes into account Indonesia’s net zero policy. To address this gap, this paper examines and suggests policy directions for cooperation with Korea’s Green New Deal, based on an analysis of Indonesian policies related to carbon neutrality and the current status of international cooperation in Indonesia. Indonesia had submitted a NDC target of unconditional reduction of 29%, conditional reduction of 41% by 2030, and has been implementing a series of policies in various areas, for example finance, technical assistance, capacity building, etc. Indonesia is coordinating its NDC targets and the local adaption and mitigation policies through the Long-Term Strategy for Low Carbon and Climate Resilience (LTS-CCR) 2050. In addition, a series of policies in the areas of environment Executive Summary • 105protection, renewable energy, reforestation, and waste management had been introduced in the National Medium Term Development Plan (RPJMN) for 2020-2024. The National Energy Policy(KEN), which is the major initiative for Co2 emission mitigation, pursues to change the energy consumption structure by increasing the share of renewable energy instead of fossil fuels. The National Energy Plan(RUEN) is a set of multi-sectoral policies to implement the targets of KEN. The National Electricity Plan(RUKN) is the core plan of RUEN, in line with which the country has been implementing the structural change of nationalelectricity generation by increasing the share of renewable energy(12%→28%) and decreasing the share of fossil fuels(60%→47%)(the rest omitted)
    Keywords: 환경정책; 에너지산업 environmental policy; energy industry
    Date: 2022–03–30
  11. By: Sirgit Perdana (CMCS-EPFL - CMCS-EPFL - EPFL - Ecole Polytechnique Fédérale de Lausanne); Marc Vielle (CMCS-EPFL - CMCS-EPFL - EPFL - Ecole Polytechnique Fédérale de Lausanne); Maxime Schenkery (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School)
    Abstract: The recent economic sanctions against Russia can jeopardize the sustainability of the European Union's (EU) energy supply. Despite the EU's strong commitment to stringent abatement targets, fossil fuels still play a significant role in the EU energy policy. Furthermore, high dependency on Russian energy supplies underlines the vulnerability of the EU energy security. Using a global computable general equilibrium model, we prove that the current EU embargo on coal and oil imported from Russia will have adverse supply effects, substantially increasing energy prices and welfare costs for the EU resident. Although it reduces emissions, extending the embargo to include natural gas doubles this welfare cost. The use of coal is likely to increase, especially with respect to EU electricity generation, given the current constraints of additional import capacities from nonRussian producers. The impact on Russia once the EU extends the sanctions to natural gas is less substantial than on the EU. Russian welfare cost will increase less than 50%, indicating that extending the current restriction to boycott Russian gas is a costly policy option.
    Keywords: European Union, Russia, Computable General Equilibrium Model, Fit for 55 Package, Imports Ban
    Date: 2022–11–01
  12. By: Casoli, Chiara; Manera, Matteo; Valenti, Daniele
    Abstract: We develop a Bayesian Structural VAR (SVAR) model to study the relationship between different kinds of energy shocks and inflation dynamics in Europe. Specifically, we include in our specification two separate energy markets (oil and natural gas) and two target macroeconomic variables, measuring inflation expectations and the realized headline inflation. Our results demonstrate that, during the last year, inflation in the Euro area is more affected from energy price shocks, particularly those coming from the natural gas sector. The high peaks of the Eurozone inflation are mainly associated with gas consumption demand shocks and, to a lesser extent, to oil and gas supply shocks.
    Keywords: Public Economics, Research Methods/ Statistical Methods, Resource /Energy Economics and Policy
    Date: 2022–12–19
  13. By: Romagnoli, Matteo
    Abstract: The paper investigates the effect of electricity liberalisation on the variety of clean energy patent’ search space to asses whether a more competitive electricity market can foster the development of radical clean-energy technologies. This idea is tested using a cross-section of patents filed in the period 1990-2017, a set of patent-level indicators and an instrumental variable approach. Results show that electricity liberalisation pushes clean-energy patents to cite knowledge from technological fields other than their own. However, the reform does not significantly affect the overall breath of the knowledge base of these patents. Additional insights are drawn by looking at the correlation between electricity liberalisation and an indicator of novelty in patents’ search space. The results are consistent with the claim that electricity liberalisation has a positive effect on the development of radical clean-energy technologies. At the same time, by describing how the reform changes clean-energy patents’ search space, they define this effect more precisely.
    Keywords: Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy
    Date: 2022–12–19
  14. By: Zapata, Oscar
    Abstract: Energy transitions in Indigenous, Northern and remote communities in Canada promise benefits that go beyond reliable, clean and affordable energy services. The Federal and Provincial governments have committed funding to get remote communities off diesel, acknowledging energy transitions’ global and local benefits. Besides climate change mitigation, other benefits, including job creation, income generation, community ownership and local economic growth, are fundamental components of the value proposition of renewable energy projects. However, despite the promises, little evidence on the impacts of renewable energy on communities’ local conditions exists. This article looks at the relationship between renewable energy projects and community wellbeing in Canada. We construct a panel of Indigenous community wellbeing with Census data and information about renewable energy projects for the period 1981 – 2016, and find that renewable energy is associated with higher levels of wellbeing. Concretely, having access to renewable energy increases overall wellbeing by 1 to 5 points on the 0-100 wellbeing scale, depending on the component of the wellbeing index considered in the analysis.
    Date: 2022–11–22
  15. By: Grubert, Emily; Sawyer, Frances
    Abstract: The United States’ expected largest-ever climate mitigation investment, through 2022’s Inflation Reduction Act (IRA), relies heavily on subsidies. One major subsidy, the 45Q tax credit for carbon oxide sequestration, incentivizes emitters to maximize production and sequestration of carbon oxides, not abatement. Under IRA’s 45Q changes, carbon capture and storage (CCS) is expected to be profitable for coal and natural gas-based electricity generator owners, particularly regulated utilities that earn a guaranteed rate of return on capital expenditures, despite being costlier than zero-carbon resources like wind or solar. This analysis explores investment decisions driven by profitability rather than system cost minimization, particularly where investments enhance existing assets with an incumbent workforce, existing supplier relationships, and internal knowledge-base. This analysis introduces a model and investigates six scenarios for lifespan extension and capacity factor changes to show that US CCS fossil power sector retrofits could demand $0.4-$3.6 trillion in 45Q tax credits to alter greenhouse gas emissions by -24% ($0.4 trillion) to +82% ($3.6 trillion) versus business-as-usual for affected generators. Particularly given long lead times, limited experience, and the potential for CCS projects to crowd or defer more effective alternatives, regulators should be extremely cautious about power sector CCS proposals.
    Date: 2022–12–02
  16. By: Tastan, Kadri
    Abstract: The implementation of the European Union's (EU) Green Deal to reduce emissions by 2030 and to achieve climate neutrality by 2050 will have an impact on the EU's trade policy and on its trade relations with its non-EU partners. With the ongoing decarbonisation process of European economic sectors, the EU's climate policy will be increasingly integrated into its trade policy through measures such as the Carbon Border Adjustment Mechanism (CBAM) and by strengthening the environment chapters of its trade agreements. Therefore, the debate on the future of Turkey-EU trade relations should focus on future prospects for decarbonisation and trade if both sides are keen to maintain or deepen their trade relations. In the current context, which is rife with geopolitical and energy security considerations, a long-term vision and a holistic approach are needed now more than ever.
    Keywords: Green Deal,Decarbonisation,Carbon Border Adjustment Mechanism,CBAM,Nationally Determined Contributions,NDCs,Customs Union,Transatlantic Trade and Investment Partnership,TTIP,EU Emissions Trading System,Turkey
    Date: 2022
  17. By: Rouhani, Omid; Moradi, Ehsan; Do, Wooseok; Bai, Song; Farhat, Antoine
    Abstract: The Drawdown book surfs through 100 possible solutions and technologies. Those solutions could help mitigate GHG emissions in order to constrain climate change. In this book review, we examine the estimated CO2 reduction levels as well as the costs of each solution. Alternative cement, smart thermostats, and geothermal energy are the top cost-effective solutions. We, however, discuss our top five solutions, according to the combination of their potential drawdown, cost effectiveness, and future development. Those solutions target refrigerants, wind energy, food, cement, and female education. Overall, the book could inform people with little or no knowledge about well-known solutions to mitigating climate change footprints. Nevertheless, the numbers and costs are too speculative to ponder for policy making.
    Keywords: Sustainability; Global Warming; Climate Change; Greenhouse Gas Emissions
    JEL: F64 H7 Q2 Q54
    Date: 2022–12
  18. By: Fabrizio Ferriani (Bank of Italy); Andrea Gazzani (Bank of Italy)
    Abstract: We analyse the impact of the shock to energy prices induced by the war in Ukraine on the financial performance of the major European firms listed in the Eurostoxx 600 index. We find that equity returns (CDS spreads) decreased (increased) more substantially for firms characterized by high energy intensity and carbon emission intensity. We then present a method, based on a VAR model, to produce forecasts of firms’ CDS spreads conditional on a 3-month stress period of high electricity prices and we document a non-negligible increase in the number of firms with a CDS-implied non-investment rating.
    Keywords: war in Ukraine, energy impacts, financial performance, CDS spread
    JEL: G12 G14 G32 G33
    Date: 2022–11
  19. By: Mark R. Jacobsen; James M. Sallee; Joseph S. Shapiro; Arthur A. van Benthem
    Abstract: What is a feasible and efficient policy to regulate air pollution from vehicles? A Pigouvian tax is technologically infeasible. Most countries instead rely on exhaust standards that limit air pollution emissions per mile for new vehicles. We assess the effectiveness and efficiency of these standards, which are the centerpiece of US Clean Air Act regulation of transportation, and counterfactual policies. We show that the air pollution emissions per mile of new US vehicles has fallen spectacularly, by over 99 percent, since standards began in 1967. Several research designs with a half century of data suggest that exhaust standards have caused most of this decline. Yet exhaust standards are not cost-effective in part because they fail to encourage scrap of older vehicles, which account for the majority of emissions. To study counterfactual policies, we develop an analytical and a quantitative model of the vehicle fleet. Analysis of these models suggests that tighter exhaust standards increase social welfare and that increasing registration fees on dirty vehicles yields even larger gains by accelerating scrap, though both reforms have complex effects on inequality.
    JEL: H21 H23 H7 Q5 Q50 R4
    Date: 2022–12
  20. By: Ansari, Dawud; Grinschgl, Julian; Pepe, Jacopo Maria
    Abstract: Due to Europe's gas crisis and the Russian invasion of Ukraine, ramping up the hydrogen market has become more urgent than ever for European and German policymakers. However, ambitious targets for green hydrogen present an enormous challenge for the European Union (EU) and its young hydrogen economy. Apart from the demand for electricity, there is above all a lack of production capacities for electrolysers. The envisioned production scaling of electrolysers is almost impossible to achieve, and it also conflicts with import efforts and cements new dependencies on suppliers of key raw materials and critical components. Although a decoupling from Russia's raw material supply is generally possible, there is no way for the EU to achieve its goals without China. Aside from loosened regulations and the active management of raw material supply, Europe should also reconsider its biased preference for green hydrogen.
    Keywords: Russia,Ukraine,EU,climate and energy policy,REPowerEU,electricity,electrolyser,raw material,nickel,platinum-group metals (PGMs),polymer electrolyte membrane (PEM)
    Date: 2022
  21. By: Ralph De Haas; Martin, Ralf; Muûls, Mirabelle; Schweiger, Helena
    Abstract: We use data on 11,233 firms across 22 emerging markets to analyze how credit constraints and low-quality firm management inhibit corporate investment in green technologies. For identification we exploit quasi-exogenous variation in local credit conditions and in exposure to weather shocks. Our results suggest that both financial frictions and managerial constraints slow down firm investment in more energy efficient and less polluting technologies. Complementary analysis of data from the European Pollutant Release and Transfer Register (E-PRTR) corroborates some of this evidence by revealing that in areas where banks deleveraged more after the global financial crisis, industrial facilities reduced their carbon emissions by less. On aggregate this kept local emissions 15% above the level they would have been in the absence of financial frictions.
    Keywords: Financial frictions,management practices,CO2 emissions,energy efficiency
    JEL: D22 L23 G32 L20 Q52 Q53
    Date: 2021
  22. By: Zhang, Shaojun (Ohio State University)
    Abstract: Companies face significant carbon-transition risk as the global economy works to combat climate change. This paper studies the market-based premium associated with the carbon-transition risk globally and finds that firms with more carbon-intense business models earn higher returns in recent years. The carbon return is impacted by climate-aware institutional flows, is magnified following heightened climate policy risk, and is lower in countries with more institutional presence, higher levels of development, less physical risk, and better governance. The pricing the carbon-transition risk is well under-way globally, but further global regulatory coordination is required to mitigate the externalities of carbon emissions.
    JEL: G10 G12 G15
    Date: 2022–09
  23. By: Shapiro, Joseph S.
    Abstract: What is a feasible and efficient policy to regulate air pollution from vehicles? A Pigouvian tax is technologically infeasible. Most countries instead rely on exhaust standards that limit air pollution emissions per mile for new vehicles. We assess the effectiveness and efficiency of these standards, which are the centerpiece of US Clean Air Act regulation of transportation, and counterfactual policies. We show that the air pollution emissions per mile of new US vehicles has fallen spectacularly, by over 99 percent, since standards began in 1967. Several research designs with a half century of data suggest that exhaust standards have caused most of this decline. Yet exhaust standards are not cost-effective in part because they fail to encourage scrap of older vehicles, which account for the majority of emissions. To study counterfactual policies, we develop an analytical and a quantitative model of the vehicle fleet. Analysis of these models suggests that tighter exhaust standards increase social welfare and that increasing registration fees on dirty vehicles yields even larger gains by accelerating scrap, though both reforms have complex effects on inequality.
    Keywords: Social and Behavioral Sciences
    Date: 2022–12–16
  24. By: Kuosmanen, Natalia; Maczulskij, Terhi
    Abstract: Abstract Energy-intensive industry is one of the largest sources of greenhouse gas emissions in Finland: its share in the total emissions was 23 percent in 2020. During the last 20 years, industrial emissions decreased from 18 million tons to 11 million tons, or on average approximately 2 percent per year. Which characteristics explain the evolution of emissions? Does the structural change in manufacturing sector and the renewal of companies affect the reduction of greenhouse gas emissions, and thus the mitigation of climate change? To answer these questions, we analyze the carbon productivity growth and the impacts of its components. Based on our results, continuing manufacturing firms were the main drivers of carbon productivity growth of the manufacturing sector in the period 2000–2019. The entry of new firms and exit of unproductive firms (creative destruction) is part of structural change of industries. Its effect on carbon productivity growth was, however, negative. This suggests that some of the most efficient companies in terms of the use of greenhouse gas emissions, for some reason, were unprofitable and exited the market. In addition, the allocation of greenhouse gas emissions across manufacturing firms seems to be inefficient. Its impact on carbon productivity growth was negative. It means that emissions were allocated towards the most polluting companies and the reduction of emissions was due to companies with low emissions. Accordingly, there is a positive relationship between labour productivity and carbon productivity, whereas firm’s competitiveness is negatively associated with carbon productivity growth.
    Keywords: Carbon productivity, Greenhouse gas emissions, Manufacturing, Structural change
    JEL: D24 L60 Q54
    Date: 2022–12–13
  25. By: Laeven, Luc; Popov, Alexander
    Abstract: Using data on syndicated loans, we find that the introduction of a carbon tax is associated with an increase in domestic banks’ lending to coal, oil, and gas companies in foreign countries. This effect is particularly pronounced for banks with large prior fossil-lending exposures, suggesting a role for bank specialization. Lending to private companies in foreign markets increases relatively more, which points to an intensification of banks’ incentives to avoid public scrutiny. We also find that banks reallocate a relatively larger share of their fossil loan portfolio to countries with less strict environ-mental regulation and bank supervision. JEL Classification: F3, G15, G21, H23, Q5
    Keywords: carbon taxes, climate change, cross-border lending
    Date: 2022–12
  26. By: Malerba, Daniele; Chen, Xiangjie; Feng, Kuishuang; Hubacek, Klaus; Oswald, Yannick
    Abstract: The global policy debate on just transitions is concerned with how to achieve a socially just and acceptable transition toward a climate-neutral and climate-resilient global economy. At the core of this debate is the assumption that efforts to combat environmental threats will not succeed unless combined with measures to reduce poverty and inequality. Our research explores the potential of carbon fiscal reforms, combining a carbon tax of levels deemed appropriate to achieve climate targets and the transfer of the revenues raised to vulnerable households. The current energy and cost-of-living crisis shows the importance of protecting the poorest and most vulnerable households from price increases. It also shows the difficulty of achieving short- and long-term policy priorities. Despite the current spikes in energy prices, carbon fiscal reforms can achieve both social and environmental goals through simultaneously decreasing emissions and reducing poverty and inequality. They should act as an effective enabler of just transitions. Carbon fiscal reform can avoid some environmental impacts by incentivising reductions in emissions. Carbon pricing has been increasingly advocated and is now at the centre of policy debates, including the UNFCCC Conference of the Parties (COP) and the recent German presidency of the world's leading industrial nations (G7). But carbon fiscal reforms can also be used to raise revenue from carbon pricing instruments to offset the negative effects of higher prices on poorer households as well as further reaching distributional targets and poverty alleviation. Climate targets are negotiated every year, including at COP, hence it is critical to re-evaluate and improve estimates of the distributional impacts of climate policies such as carbon pricing. Public acceptability of climate policies is key to their implementation, but it depends to a large extent on the perceived fairness of such policies. Recycling revenues from carbon taxes directly back to vulnerable households is likely to gain the approval of a large number of people, especially in low-income countries where the high proportion of the population involved in the informal economy means that lowering income tax does not benefit the poorest and most vulnerable sections of society. But the targeting of these direct transfers needs careful consideration. Here, we assess the impact on poverty and inequality of a global carbon tax and national redistribution of revenues to vulnerable households. We look at different options for such redistribution, including a lump sum payment, the use of current social assistance programmes, and an expansion of social assistance following COVID-19. We find that a carbon tax of US$50/tCO2 without revenue redistribution could increase global extreme poverty, but the redistribution of revenue from such a carbon tax could substantially reduce poverty by between 16% and 27% (110 to 190 million people), and reduce inequality (the average Gini coefficient would decline by between 4% and 8%), depending on the scenario. This shows that the way in which revenue from a carbon tax is redistributed greatly affects its impact, underlining the importance of policy design and targeting mechanisms. The recycling of revenues should also take into account the specific political economy of a country and consider international transfers. These findings provide policy makers with a strong basis for informing discussions, starting off with those at COP27, in which ambitious climate targets and just transition should both remain central goals in the context of the ongoing international energy crisis.
    Keywords: Poverty,inequality,climate change,taxation
    Date: 2022
  27. By: Fetzer, Thiemo (University of Warwick, Department of Economics & CAGE); Gazze, Ludovica (University of Warwick, Department of Economics & CAGE); Bishop, Menna (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 JEL Codes:
    Date: 2022
  28. By: Guo, Liwen; Cheng, Zhiming; Tani, Massimiliano; Cook, Sarah; Zhao, Jiaqi; Chen, Xi
    Abstract: We examine the causal effect of air pollution on an individual's propensity for entrepreneurship in China. Our preferred model, which employs an instrumental variable approach to address endogeneity arising from sorting into entrepreneurship and locational choices, suggests that exposure to higher intensity of air pollution lowers one's proclivity for entrepreneurship. A one standard deviation increase in air pollution leads to a 21.2% decrease in the propensity for entrepreneurship. We also find that self-efficacy is a channel in the relationship between air pollution and entrepreneurship. In addition, education moderates the relationship between air pollution and self-efficacy.
    Keywords: Air pollution,Entrepreneurship,China
    JEL: J24 L26 Q53
    Date: 2022
  29. By: Svenn Jensen (OsloMet - Oslo Metropolitan University); Christian P. Traeger (University of Oslo - Department of Economics; CESifo (Center for Economic Studies and Ifo Institute) - Ifo Institute)
    Abstract: Anthropogenic greenhouse gas emissions are changing the energy balance of our planet. Various climatic feedbacks make the resulting warming over the next decades and centuries highly uncertain. We quantify how this uncertainty changes the optimal carbon tax in a stochastic dynamic programming implementation of an integrated assessment model of climate change. We derive a general analytic formula for the “risk premium” governing the resulting climate policy. The formula generalizes simple precautionary savings analysis to more complex economic interactions and it builds the economic intuition for policy making under uncertainty. It clarifies the distinct roles of risk aversion, prudence, characteristics of the damage formulation, and future policy response. We show that an optimal response to uncertainty substantially reduces the risk premium.
    JEL: Q54 Q00 D90 C63
    Date: 2021–01–01
  30. By: Gavard, Claire; Göbel, Jonas; Schoch, Niklas
    Abstract: An argument sometimes used to support renewable energy is that it may contribute to job creation. On the other hand, these technologies often face local opposition. On the case of Denmark, the country with the longest experience with wind power, the authors examine whether the installation of new turbines had local economic benefits. They use a quasi-experimental set-up and exploit time and regional variations at the municipal level. The authors find that the deployment of wind power contributed to the increase in personal income for entrepreneurs and some retirees. As municipalities received payments from wind investors ahead of the construction, the new wind revenues were followed by increases in local public spending. Regarding employment, the authors find very minor effects in some sectors but the aggregate local employment does not change significantly.
    Keywords: Wind power,renewable energy,climate policy,co-benefits,employment
    JEL: C23 H23 Q42 Q48
    Date: 2022
  31. By: Jan Frankowski; Joanna Mazurkiewicz; Jakub Soko³owski
    Abstract: Widespread modernisation of social housing is essential if the country is to avoid exacerbating energy poverty in its cities. In Poland, the inhabitants of social housing estates are people with low and insecure incomes; their homes are often in poor condition and are usually heated with either coal stoves or electric heaters. Municipal governments own social housing flats. Therefore it is up to them to improve the living conditions of residents in a sustainable manner. However, municipal governments have limited resources for modernisation, and the current energy crisis will only tighten their pockets further. We propose that three critical social criteria are considered when assessing and implementing social housing energy efficiency investments: 1) Efficiency, 2) Solidarity, and 3) Reduction of External Costs. Adhering to these criteria will allow municipalities to retrofit social housing more equitably – meaning that investments will serve those most in need while limiting their environmental impact.
    Keywords: energy, climate, housing, energy poverty
    Date: 2022–12
  32. By: Valérie Mignon; Jamel Saadaoui
    Abstract: This paper investigates the role of political tensions between the US and China and global market forces in explaining oil price fluctuations. To this end, we rely on quantile regressions—quantile autoregressive distributed lag (QARDL) error-correction model—to account for possible asymmetric effects of those determinants, depending on both the level of oil prices and the period. Our results show evidence of a quantile-dependent long-term relationship between oil prices and their determinants over the 1958-2022 period, with an exacerbated effect of US-China political tensions in times of high oil prices. Furthermore, this quantile-dependent cointegrating relationship is time-varying across quantiles, highlighting the increased role played by China in the oil market since the mid-2000s.
    Keywords: Oil prices, political tensions, quantile regressions.
    JEL: Q41 F51 C22
    Date: 2022
  33. By: Dirk Bergemann (Department of Economics, Yale University and Fondazione Eni Enrico Mattei); Marina Bertolini (Department of Economics and Management, Levi Cases Centre and CRIEP, University of Padova); Marta Castellini (Fondazione Eni Enrico Mattei and Department of Civil, Environmental and Architectural Engineering, DICEA, University of Padova); Michele Moretto (Department of Economics and Management, Levi Cases Centre and CRIEP University of Padova); Sergio Vergalli (Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia)
    Abstract: In this work we study the case of agents willing to engage in a Renewable Energy Community (REC). The municipality – being the promoter of the REC – burdens all the investment costs (RE plants, storage, local grid interventions) and entrusts an aggregator of its operation paying a fixed tariff. The latter, acting as a monopolist, is also the sole supplier of energy for the REC’s members. The management of the REC requires the collection of energy data from the members to assure its efficient operation on the side of the self-consumption and exchange of energy within it. Such data allow also the identification of the agents’ preferences across energy devices and are an additional source of revenues for the aggregator thanks to their sell to third parts. This behaviour translates into a dis-utility the agents, which we call privacy cost. In such a framework, we consider also uncertainty on the side of the investment cost. On the basis of the outcomes of our model, we are able to study the effect of data collection policy performed by the aggregator on the size of the REC, while also accounting for agents’ valuation and the role of uncertainty on the investment cost side.
    Keywords: Smart Grids, Renewable Energy Sources, Renewable Energy Communities, Prosumers, Peer to Peer Energy Trading, Information, Privacy Costs
    JEL: Q42 C61 D81
  34. By: RODRIGUEZ QUINTERO Rocio; BERNAD BELTRAN David (European Commission - JRC); RANEA PALMA Maria (European Commission - JRC); DONATELLO Shane; VILLANUEVA KRZYZANIAK Alejandro (European Commission - JRC); PARASKEVAS Dimos; BOYANO LARRIBA Alicia; STAMMINGER Rainer
    Abstract: Ecodesign and Energy Labelling Regulation of domestic cooking appliances entered into force in 2015. Since then, the market has evolved and new technologies are available. The implementing measures contain review clauses that are already due. Energy classes also need rescaling. Therefore, the Commission launched the revision of this Regulation. The study has been led by DG ENER and conducted by the Joint Research Centre. Some areas where revised regulation could provide added value in this product group have been identified. Some oven manufacturers may be exploiting the characteristics of current measurement methods to declare energy consumption values that are lower than real-life use. The current approach for energy declaration allows the use of heating modes that are not consumer representative. Similarly, current energy efficiency measurement methods in cooking fume extractors may be pushing the market towards high airflow appliances, rather than to energy efficient ones. Other aspects that required further research were the ambition level of material efficiency requirements, the feasibility of energy sources such as hydrogen or the harmonization with other horizontal regulation such as low power modes.Based on these aspects, a set of policy options have been evaluated and presented as potential aspects to review in a hypothetical new version of the ecodesign and energy labelling regulation for cooking appliances.
    Keywords: Cooking appliances, Oven, Hob, Cooking fume extractor, Ecodesign, Energy Label, Energy Efficiency, Resource Efficiency
    Date: 2022–10
  35. By: Hanna, Rema; Hoffmann, Bridget; Oliva, Paulina; Schneider, Jake
    Abstract: We conduct a randomized controlled trial in Mexico City to determine willingness to pay (WTP) for SMS air quality alerts and to study the effects of air quality alerts, reminders, and a reusable N95 mask on air pollution information and avoidance behavior. At baseline, we elicit WTP for the alerts service after revealing whether the household will receive an N95 mask and participant compensation, but before revealing whether they will receive alert or reminder services. While we observe no significant impact of mask provision on WTP, higher compensation increases WTP, suggesting a possible cash-on-hand constraint. The perception of high pollution days prior to the survey is positively correlated with WTP, but the presence of actual high pollution days is not correlated with WTP. Follow-up survey data demonstrate that the alerts treatment increases reporting of receiving air pollution information via SMS, a high pollution day in the past week, and staying indoors on the most recent perceived high pollution day. However, we observe no significant effect on the ability to correctly identify which specific days had high pollution. Similarly, households that received an N95 mask are more likely to report utilizing a mask with filter in the past two weeks, but we observe no effect on using a filter mask on the specific days with high particulate matter. Although we nd that air quality alerts increased the salience of air quality and avoidance behavior, these results illustrate the difficulty that information treatments face in overcoming perceptions to effectively reduce exposure to air pollution.
    Keywords: Mexico;Information;Randomized Control Trial;Air pollution;willingness to pay;Alerts;Avoidance behavior
    JEL: Q56 Q53 D83
    Date: 2021–07
  36. By: Kuosmanen, Natalia; Maczulskij, Terhi
    Abstract: Abstract This paper investigates the importance of firm dynamics, including entry and exit and the allocation of carbon emissions across firms, on the green transition. Using the 2000–2019 firm-level register data on greenhouse gas emissions matched with the Financial Statement data in the Finnish manufacturing sector, we examine the sources of carbon-productivity growth and assess the relative contributions of structural change and firm dynamics. We find that continuing firms were the main drivers of carbon productivity growth whereas the contribution of entering and exiting firms was negative. In addition, the allocation of emissions across firms seems to be inefficient; its impact on carbon productivity growth was negative over the study period. Moreover, we find that there is a positive relationship between labor-intensive firms and carbon productivity but that firms with a larger market share tend to be less productive in terms of carbon use.
    Keywords: Carbon productivity, Decomposition, Firm dynamics, Firm-level data, Manufacturing
    JEL: D24 L60 Q54
    Date: 2022–12–13
  37. By: Miriam Fritzsche (Humboldt-University Berlin); Nikolaus Wolf (Humboldt-University Berlin, CEPR, CESifo)
    Keywords: Coal, Oil invasion, Education, Reinvention, Economic Growth
    JEL: O13 Q32 N13 R10 I25
    Date: 2022–12
  38. By: Axenbeck, Janna; Berner, Anne; Kneib, Thomas
    Abstract: The ongoing digital transformation has raised hopes for ICT-based climate protection within manufacturing industries, such as dematerialized products and energy efficiency gains. However, ICT also consume energy as well as resources, and detrimental effects on the environment are increasingly gaining attention. Accordingly, it is unclear whether trade-offs or synergies between the use of digital technologies and energy savings exist. Our analysis sheds light on the most important drivers of the relationship between ICT and energy use in manufacturing. We apply flexible tree-based machine learning to a German administrative panel data set including more than 25,000 firms. The results indicate firm-level heterogeneity, but suggest that digital technologies relate more frequently to an increase in energy use. Multiple characteristics, such as energy prices and firms' energy mix, explain differences in the effect.
    Keywords: digital technologies,energy use,manufacturing,machine learning
    JEL: C14 D22 L60 O33 Q40
    Date: 2022
  39. By: Frings, Cordelia (University of Cologne, Faculty of Management, Economics and Social Sciences Chair in Economics, Energy and Sustainability); Helgeson, Broghan (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI))
    Abstract: The shift from centralized to decentralized energy provision has created an opportunity for a wide range of distributed energy resources. In deciding how to best serve their long-term energy needs, end consumers face a plethora of investment options together with complex regulatory instruments as well as growing uncertainty regarding, e.g. techno-economic and political developments. Optimization models using linear programming methods are one option to help shed light on possible technology combinations and the economic consequences for end consumers. Yet the existing literature indicates a clear lack of models capable of accounting for high technical, regulatory and economic detail while optimizing investments in multiple future years. Therefore, within this paper, the mixed-integer linear programming model COMODO (Consumer Management of Decentralized Options) is developed to determine the cost-minimal energy provision for end consumers. The model uses its extensive technology catalog to perform an investment and dispatch optimization for multiple years, minimizing total costs over a long-term time horizon while accounting for developments in techno-economic data, regulatory frameworks and energy market conditions. Furthermore, piecewise-linear functions are created to represent costs and subsidies for different systems sizes and for future years. In order to demonstrate the capabilities of the model developed, an exemplary application is presented to investigate the energy provision of four single-family homes in Germany for the years 2025 to 2045. Three scenarios are designed that build upon each other regarding the amount of information available to consumers and their decentralized energy technologies. The results show a clear preference for gas boilers as a base technology coupled with electric heaters to cover demand peaks. Households with higher demand levels invest in PV systems in 2025, while other households with lower demands either wait until 2040 or do not invest. A sensitivity analysis then examines the effects of higher carbon pricing in the German building sector on the consumer’s energy provision.
    Keywords: Distributed energy resources; mixed-integer linear programming; consumer investment behavior; consumer modeling; heating; electricity; techno-economic optimization; energy system design
    JEL: C26 C53 D11 D13 D15 H20
    Date: 2022–12–08
  40. By: Shuya Wu (CUP - China University of Petroleum Beijing, IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Arash Farnoosh (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Yingdan Mei (CUP - China University of Petroleum Beijing)
    Abstract: While promoting green and low-carbon transition, clean energy facilities also have externalities, which may lead to opposition and economic losses. There is evidence that the impact of facilities decreases with distance, but existing research make strict assumption on its functional form. In this research work we explore the non-linear relationship between housing transaction prices and distances to the nearest facility without predefined functions combined with spatial smoothing in the hedonic pricing model by taking China as a case-study. We use the housing transaction data from 2015 to 2018 to estimate the distance decay of HRS (Hydrogen Refueling Station) in different regions in the rental and sale markets. The results show that the HRS has a significant negative impact on sale prices, while it has no significant impact on rental prices. In the sale market, for every 1% decrease in the distance, the house prices decrease by 6.62%, and the main impact distance is 3.5 km. In the eastern region, HRS has a significant impact on both rents and prices; in the central and western regions, there may be a positive impact on the rental market, but there is no significant impact in the northeastern region. Based on the empirical results, policy recommendations are given.
    Keywords: Clean energy facility, Hydrogen refueling station, Non-linear distance decay, Hedonic
    Date: 2022–06–01
  41. By: NISHITATENO Shuhei
    Abstract: During the early 2000s, five prefectures in Japan introduced a Low Emission Zone (LEZ) policy that banned highly polluting diesel trucks and buses from entering. This paper analyzes effects of this policy intervention on air quality, new vehicle registrations, and birthweights. To do so we use a matching approach to construct a control group that is comparable to the designated areas in terms of pollution levels and road traffic volumes of regulated vehicles and apply a difference-in-differences (DD) design. We find that the LEZs led to a reduction in hourly suspended particulate matter concentrations and to reduced incidence of low birthweights in the treated prefectures relative to the control group, holding the gestational period and other controls constant. Evidence also suggests that the LEZs led to an increase in new registrations of trucks and buses, but not of passenger cars, which were exempt from the regulations. Our paper is the first to study such a large-scale LEZ intervention and to provide evidence linking LEZs to reduced incidence of low birthweights.
    Date: 2022–11
  42. By: Luciano Lavecchia (Bank of Italy); Jacopo Appodia (Bank of Italy); Paolo Cantatore (Bank of Italy); Rita Cappariello (Bank of Italy); Stefano Di Virgilio (Bank of Italy); Alberto Felettigh (Bank of Italy); Andrea Giustini (Bank of Italy); Valeria Guberti (Bank of Italy); Danilo Liberati (Bank of Italy); Giorgio Meucci (Bank of Italy); Stefano Piermattei (Bank of Italy); Federico Schimperna (Bank of Italy); Katia Specchia (IVASS)
    Abstract: Monitoring climate-related (and environmental) financial risks requires high quality and highly granular data. However, these are scarcely available, except for little data on a small number of counterparty firms. This paper sheds light on the sustainable data gap in Italy, with a special focus on the climate and environmental components. First, we take stock of the data needs arising from firms’ transition plans, commitments to net zero, and financial analyses, to which the requirements arising from international, European and national regulations, as well as from supervisory demands, were added. Second, we map the existing and available data regarding climate, energy, GHG emissions, climate-related financial risks, as well as existing but inaccessible data. Finally, we highlight any missing data, pointing out the areas that are most affected by the data gap.
    Keywords: sustainable data gap, climate change, sustainable finance, physical risk, transition risk, GHG emissions, energy
    JEL: C81 Q54 Q48
    Date: 2022–11
    Abstract: 코로나19 대유행 이전부터 시작된 ‘녹색전환(Green Transformation)’은 코로나19 이후에도 주요국들의 주된 경제정책 방향이 될 전망이다. 녹색전환은 유럽 주요국, 특히 영국과 독일, 그리고 유럽연합(EU: European Union) 이 앞장서왔고, 그 배경에는 기후변화 대응 정책에 대한 국민적인 지지가 있었다. 그런데 그러한 국민적 지지가 기후변화 대응을 전면에 내세우는 정당(통칭 녹색당)의 선거 결과로 이어지는 정도는 국가마다 다르다. 이러한 유럽의 사례 에서 녹색당의 성공 또는 부진 원인을 파악하는 것은 기후변화 대응 정책에서 녹색당의 역할을 이해하는 데 도움을 줄 것이다. 이는 환경을 전면에 내세운 정당이 극히 저조한 지지를 받아온 한국에서 기후변화 대응 정책을 지속시키기 위한 시사점을 줄 것이다. 이러한 배경 아래 본 연구는 영국, 독일, EU에서 환경 관련 주요 정당의 현황과 역사를 살펴보고, 제도권 정치에서 그들의 성공과 실패에 대한 원인을 분석하였다. 관련 문헌은 한국에서 환경을 전면에 내세운 정당의 선거 결과가 극히 부진한 원인으로 세 가지 가능성, 즉 국민의 인식, 선거제도, 기존 주요 정당들의 대응을 꼽는다. 따라서 본 연구는 이 세 가지 측면에 집중하여 개별 사례를 분석하였다.(the rest omitted) <p> The Green Transformation that has begun before the COVID-19 pandemic is expected to continue to be a major economic policy of governments around the globe. Major European countries, especially the United Kingdom and Germany, along with the European Union, are at the forefront of this transformation. However, electoral outcomes of political parties focused on climate change (i.e., Green Parties) differ significantly among these cases. Analyzing the reasons of their electoral success or failure can help understanding their role in climate-change policy. This, in turn, can teach how to make climate policy sustainable in Korea where political support for Green Parties is extremely low. We review the history of Green Parties in the UK, Germany and the EU and analyze the reasons for their success or failure. The related literature considers three major reasons for the extremely low electoral outcomes of Green Parties in Korea, namely the public’s attitude, electoral system and major traditional parties’ reactions. Following this, we focus on those three factors. To the concerned readers in Korea, the UK’s case shows, above all, that a substantial presence of Green Parties in the legislature is not a necessary condition for an active climate policy by the government. Instead, it emphasizes the importance of concrete commitments through legislation and institutionalization and wide consensus, including that of businesses, that the additional costs in the short run will result in net economic gains in the long run. The EU’s case shows that creating a platform on which interested parties of various types can actively participate in the discussion and formation of climate policy and putting more focus on “just transition” can be good starting points for achieving this consensus. (the rest omitted)
    Keywords: 환경정책; 에너지산업 environmental policy; energy industry
    Date: 2022–12–30
  44. By: Edward L. Glaeser; Caitlin S. Gorback; James M. Poterba
    Abstract: Pigouvian taxes and user fees can address environmental externalities and efficiently fund transportation infrastructure, but these policies may place burdens on poorer households. This paper presents new evidence on the distributional consequences of the gasoline tax, bus and light rail charges and a vehicle miles traveled (VMT) tax. Gas taxes have become more regressive over time, partially because of environmentally-oriented technological change, although the share of expenditures on gas taxes declines with expenditures much less than the share of income spent on gas taxes declines with income. Replacing the gasoline tax with a household-level VMT tax would increase the average tax burden on households in the top income and expenditure deciles, because of their greater use of hybrid-electric and battery-electric vehicles. This progressive shift would be small given current levels of hybrid and electric vehicle ownership, but will be larger in the future if such vehicles continue to be more common among higher than lower income households. An expanded commercial VMT would place a larger burden, as a share of expenditures, on lower income or expenditure households, because better-off households consume more non-tradable goods that do not require transportation. User charges for airports, subways and commuter rail are progressive, while bus fees loom much larger for lower income households.
    JEL: H23 R48
    Date: 2022–12
  45. By: Abiry, Raphael; Ferdinandusse, Marien; Ludwig, Alexander; Nerlich, Carolin
    Abstract: We develop a two-sector incomplete markets integrated assessment model to analyze the effectiveness of green quantitative easing (QE) in complementing fiscal policies for climate change mitigation. We model green QE through an outstanding stock of private assets held by a monetary authority and its portfolio allocation between a clean and a dirty sector of production. Green QE leads to a partial crowding out of private capital in the green sector and to a modest reduction of the global temperature by 0.04 degrees of Celsius until 2100. A moderate global carbon tax of 50 USD per tonne of carbon is 4 times more effective.
    Keywords: Climate Change, Integrated Assessment Model, 2-Sector Model, Green Quantitative Easing, Carbon Taxation
    JEL: E51 E62 Q54
    Date: 2022
  46. By: Willems, Bert (Tilburg University, School of Economics and Management); Pollitt, Michael; von der Fehr, Nils-Henrik; Banet, Catherine
    Date: 2022
  47. By: Bergemann, Dirk; Bertolini, Marina; Castellini, Marta; Moretto, Michele; Vergalli, Sergio
    Abstract: In this work we study the case of agents willing to engage in a Renewable Energy Community (REC). The municipality – being the promoter of the REC – burdens all the investment costs (RE plants, storage, local grid interventions) and entrusts an aggregator of its operation paying a fixed tariff. The latter, acting as a monopolist, is also the sole supplier of energy for the REC’s members. The management of the REC requires the collection of energy data from the members to assure its efficient operation on the side of the self-consumption and exchange of energy within it. Such data allow also the identification of the agents’ preferences across energy devices and are an additional source of revenues for the aggregator thanks to their sell to third parts. This behaviour translates into a dis-utility the agents, which we call privacy cost. In such a framework, we consider also uncertainty on the side of the investment cost. On the basis of the outcomes of our model, we are able to study the effect of data collection policy performed by the aggregator on the size of the REC, while also accounting for agents’ valuation and the role of uncertainty on the investment cost side.
    Keywords: Demand and Price Analysis, Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy
    Date: 2022–12–02
  48. By: Ioannis Arampatzidis (Department of Economics, University of Duisburg-Essen, Germany; Ruhr Graduate School in Economics, Germany); Theodore Panagiotidis (Department of Economics, University of Macedonia, Greece)
    Abstract: The alternative identification techniques for oil market shocks could be responsible for the mixed results in the oil-stock market literature. This study employs a Bayesian Structural Vector Autoregression (SVAR) to compare the implications of traditional identification approaches (SVAR with zero/sign restrictions) with those from the baseline model (Bayesian SVAR) for the case of the US. We find that the baseline model implies more plausible posterior price elasticities of oil supply and demand and a more profound effect of oil supply shocks on oil prices. Nonetheless, all models provide qualitatively similar conclusions for the effects of oil market shocks on the US stock market, with shocks coming from the demand side playing a more important role than oil supply shocks. Overall, this study reveals that traditional identification schemes remain a good approximation in practice for the oil-stock market relationship.
    Keywords: Bayesian SVAR, Identification, Oil market shocks, Stock market, US industries
    JEL: C32 Q43 G15
    Date: 2022–12
  49. By: Stephen K. Dimnwobi (Nnamdi Azikiwe University Awka, Nigeria); Ebele S. Nwokoye (Nnamdi Azikiwe University Awka, Nigeria); Clement I. Igbanugo (University of Benin, Nigeria); Chukwunonso Ekesiobi (Chukwuemeka Odumegwu Ojukwu University, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: This paper empirically assesses energy efficiency (EE) adoption among firms by examining the factors that drive investment in energy efficiency in the Onitsha plastic cluster, South-East, Nigeria. Self-administered questionnaires were delivered to the selected enterprises. A total of 450 questionnaires were administered of which 423 were certified valid and utilized for the analysis. A Heckit model was developed and estimated. Gender, firm size, Joneses effect, and expected cost reduction benefits are the significant determinants of energy efficiency investment. However, firm structure, government incentives, regulatory requirements, and reduction of carbon emission are insignificant drivers of EE investment decisions in the Onitsha Plastic Cluster. This paper presents a foremost attempt at analysing the determinants of energy investment in a cluster in Nigeria.
    Keywords: Energy Efficiency, Nigeria, Onitsha, Plastic, Cluster
    Date: 2022–01
  50. By: Garratt, Anthony; Petrella, Ivan; Zhang, Yunyi
    Abstract: We evaluate US Energy Information Agencies (EIA) forecasts of the world petroleum market, emphasising the importance of taking a multivariate perspective, considering asymmetric loss and allowing for time-variation. Forecasts for total demand, total supply, total stock withdrawals and the oil prices are biased, with biases that change over time and differ across variables. A loss function that takes into account asymmetry and interdependence can rationalise these biases. The implied asymmetric loss gives less weight to under-prediction of both demand and supply, while for oil prices, we document significant regime changes in the implied loss due to asymmetry. The EIA forecasts dominate a simple random walk benchmark when evaluated using symmetric and independent loss in the form of MSE statistical criteria. Yet, when allowing for asymmetry and interdependence that rationalize the EIA forecasts, the performance of the EIA forecasts worsens and is comparable to the random walk benchmark.
    Keywords: EIA forecasts, oil market, forecast rationality, non-separable loss, asymmetric loss.
    JEL: C32 C53 E37 Q47
    Date: 2022–08–25
  51. By: Majid Hashemi; Glenn Jenkins (Queen's University); Frank Milne (Queen's University)
    Abstract: This paper develops a framework for a financial, economic, and stakeholder analysis of a residential rooftop solar net-metering program. The empirical focus of the paper is the net-metering program in Ontario, Canada, but the methodology is applicable to evaluating other public programs. The results highlight that without the Federal Government’s subsidy for the initial investment cost, net-metered solar systems are not financially viable for representative households. Moreover, the stakeholder analysis reveals that for each additional net-metered system installed in Ontario, non-net-metered households experience financial losses of eight times the benefits to the net-metered households. The net losses to the Federal Government of Canada and the Canadian economy are six and twelve times the benefit to the net-metered households, respectively. The only stakeholder who benefits marginally is the Government of Ontario. In terms of environmental benefits, our estimate of the cost of greenhouse gas abatement by residential net-metered solar is 413 CAD per ton of CO2e, which is significantly higher than the current (65 CAD in 2023) and future (170 CAD by 2030) social cost of carbon set by the Government of Canada.
    Keywords: Rooftop solar, Net Metering, Greenhouse gas emissions, Social cost of carbon, Ontario, Canada
    JEL: D61 L94 Q42 Q48
    Date: 2022–11
  52. By: Hilde C. Bjørnland
    Abstract: The effect of rising energy prices amid geopolitical developments and supply disruptions
    Date: 2022–12
  53. By: Orsetta Causa; Emilia Soldani; Nhung Luu; Chiara Soriolo
    Abstract: Inflation has quickly and significantly increased in most OECD countries since the end of 2021 and further accelerated after Russia’s war of aggression against Ukraine, mostly driven by surging energy and food prices. Certain categories of households are particularly vulnerable, as large parts of their consumption expenditures are devoted to energy and food. Drawing on national micro-based household budget surveys and on CPI data, this paper provides a quantification of the impact of rising prices on households’ welfare. Declines in household purchasing power between August 2021 and August 2022 are estimated to range from 3% in Japan to 18% in the Czech Republic. This decline is driven by energy prices in most countries, especially Denmark, Italy, and the United Kingdom, while energy prices play a lesser role in countries where inflation is more broad-based like the Czech Republic and the United States. In all considered countries, inflation weighs relatively more on low than high-income households. Rural households are hit particularly hard, most often more than low-incomes ones, and this is driven by energy price inflation. To cushion vulnerable households from rising inflation, especially from energy prices, these findings call for a careful targeting of income and price support measures, notwithstanding their administrative and logistical complexity, taking into account their effects on economic activity, inflation, and, last but not least, environmental goals.
    Keywords: distribution, energy, inequality, inflation, policy analysis, purchasing power
    JEL: H12 H23 I3 Q41 Q48
    Date: 2022–12–22
  54. By: Willems, Bert (Tilburg University, School of Economics and Management); von der Fehr, Nils-Henrik; Banet, Catherine; Pollitt, Michael; Le Coq, Chloé
    Date: 2022
  55. By: Luccas Assis Attilio; Joao Ricardo Faria, Mauro Rodrigues
    Abstract: This paper studies the relationship between monetary policy and CO2 emissions. Our contribution is twofold: (i) we present a stylized dynamic AD-AS model with Global Value Chains (GVC) and carbon emissions to illustrate this relationship, (ii) we estimate the effect of monetary policy on emissions using the GVAR methodology, which explicitly considers the interconnection between regions instead of treating them as isolated economies. We focus on CO2 emissions in four regions: U.S., U.K., Japan and the Eurozone, but we use data from 8 other countries to characterize the international economy. Our results show that a monetary contraction in a country is associated with lower domestic emissions both in the short- and the long-run. Although we do not find evidence of cross-region effects concerning monetary policy, variance decomposition suggests that external factors are relevant to understanding each region's fluctuations in emissions.
    Keywords: Pollution; monetary policy; international linkages
    JEL: E52 E43 Q50
    Date: 2022–12–13
  56. By: Cullen S. Hendrix (Peterson Institute for International Economics)
    Abstract: Demand for critical minerals--bauxite, cobalt, copper, lithium, nickel, and other minerals that underpin solar, wind, geothermal, and other forms of renewable energy and electric vehicles--is already booming and is projected to continue to grow at a rapid pace. Africa’s mineral-rich developing economies could benefit greatly from this increase in demand. Many African economies have vast critical mineral reserves, and their nascent industrial sectors imply vast export potential. These countries could increase the benefits they reap from these minerals by building downstream capacity in processing--the steps that turn mined ore (bauxite, iron ore) into refined intermediate goods (aluminum, steel). To do so, however, they need to improve their infrastructure, investment climate, and governance and learn to navigate an increasingly complicated geopolitical environment. Hendrix assesses the challenges facing four critical mineral-rich developing African economies: Guinea (bauxite); the Democratic Republic of Congo (cobalt); Madagascar (graphite and nickel); and Mozambique (graphite). The solutions he offers include (a) embracing hydropower potential--which is vast in these countries--while paying attention to social costs and distributive impacts, (b) exempting refinery-related capital goods and industrial inputs from import duties, (c) locating downstream capacity in areas of relative stability, and (d) leveraging external policy anchors to provide policy stability and transparency.
    Date: 2022–12
  57. By: Blackman, Allen; Hoffmann, Bridget
    Abstract: Ambient air pollution is a leading cause of death in developing countries. In theory, using smartphone apps, text messages, and other personal information and communication technologies to disseminate real-time information about such pollution can boost avoidance behavior like wearing face masks and closing windows. Yet evidence on their effectiveness is limited. We conduct a randomized controlled trial to evaluate the impact of training university students in Bogotá, Colombia to use a newly available municipal government smartphone app that displays real-time information on air quality. The training increased participants acquisition of information about air quality, their knowledge about avoidance behavior, and their actual avoidance behavior. It also enhanced their concern about other environmental issues. These effects were moderated by participants characteristics. For example, the training was generally less effective among job holders.
    Keywords: air pollution; Colombia; information; randomized controlled trial; experiment; smartphone application
    JEL: Q53 Q56 Q58 I15
    Date: 2021–11
  58. By: Rüdiger Bachmann (UND - University of Notre Dame [Indiana]); David Baqaee (UCLA - University of California [Los Angeles] - UC - University of California); Christian Bayer (University of Bonn); Moritz Kuhn (University of Bonn, ECONtribute - ECONtribute: Markets & public policy); Andreas Löschel (RUB - Ruhr University Bochum); Ben Mcwilliams (Bruegel); Benjamin Moll (LSE - London School of Economics and Political Science); Andreas Peichl (LMU - Ludwig-Maximilians University [Munich]); Karen Pittel (LMU - Ludwig-Maximilians University [Munich]); Moritz Schularick (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, University of Bonn, ECONtribute - ECONtribute: Markets & public policy); Georg Zachmann (Bruegel)
    Abstract: An end to gas supplies from Russia has recently become much more likely. Russian supply volumes have already been substantially reduced, and uncertainty about future supplies and the winter supply situation is high. In this study, we ask what the economic consequences would be of a complete halt to Russian gas imports at present (August 2022). Almost five months have passed since our first study, "What if" (Bachmann et al., 2022), on the economic effects of a March 2022 Russian energy import freeze. The debate sparked by the study has sharpened the focus on the issues and assumptions that are critical to estimating the economic costs of a Russian energy import freeze. In this study, we update the results based on the situation in August 2022.1 (i) We estimate the necessary demand reduction that would result if Russian gas imports were halted from August 2022 and discuss economic policy strategies to achieve this adjustment. (ii) We update our estimated expected economic costs and discuss practical examples of substitution options in the industrial sector. (iii) We evaluate the federal government's economic policy, in particular its decision to increase storage levels with continued gas imports from Russia since March 2022, but to largely forego measures to reduce gas demand in power generation, industry, and residential and commercial sectors.
    Date: 2022–08
  59. By: Stefano Carattini; Kenneth Gillingham; Xiangyu Meng; Erez Yoeli
    Abstract: Observability has been demonstrated to influence the adoption of pro-social behavior in a variety of contexts. This study implements a field experiment to examine the influence of observability in the context of a novel pro-social behavior: peer-to-peer solar. Peer-to-peer solar offers an opportunity to households who cannot have solar on their homes to access solar energy from their neighbors. However, unlike solar installations, peer-to-peer solar is an invisible form of pro-environmental behavior. We implemented a set of randomized campaigns using Facebook ads in the Massachusetts cities of Cambridge and Somerville, in partnership with a peer-to-peer company. In the campaigns, treated customers were informed that they could share "green reports" online, providing information to others about their greenness. We find that interest in peer-to-peer solar increases by up to 30% when "green reports," which would make otherwise invisible behavior visible, are mentioned in the ads.
    Keywords: Peer to peer solar; pro-environmental behavior; social rewards; visibility; Facebook
    JEL: C93 D91 Q20
    Date: 2022–12
  60. By: Henrik Wachtmeister; Johan Gars; Daniel Spiro
    Abstract: Following Russia's invasion of Ukraine, Western countries have looked for ways to limit Russia's oil income. This paper considers, theoretically and quantitatively, two such options: 1) an export-quantity restriction and 2) a forced discount on Russian oil. We build a quantifiable model of the global oil market and analyze how each of these policies affect: which Russian oil fields fall out of production; the global oil supply; and the global oil price. By these statics we derive the effects of the policies on Russian oil profits and oil-importers' economic surplus. The effects on Russian oil profits are substantial. In the short run (within the first year), a quantity restriction of 20% yields Russian losses of 62 million USD per day, equivalent to 1.2% of GDP and 32% of military spending. In the long run (beyond a year) new investments become unprofitable. Losses rise to 100 million USD per day, 2% of GDP and 56% of military spending. A price discount of 20% is even more harmful to Russia, yielding losses of 152 million USD per day, equivalent to 3.1% of GDP and 85% of military spending in the short run and long run. A price discount puts generally more burden on Russia and less on importers compared to a quantity restriction. In fact, a price discount implies net gains for oil importers as it essentially redistributes oil rents from Russia to importers. If the restrictions are expected to last for long, the burden on oil importers decreases. Overall, both policies at all levels imply larger relative losses for Russia than for oil importers (in shares of their GDP). The case for a price discount on Russian oil is thus strong. However, Russia may choose not to export at the discounted price, in which case the price-discount sanction becomes a de facto supply restriction.
    Date: 2022–12
  61. By: Ehrhart, Karl-Martin; Eicke, Anselm; Hirth, Lion; Ocker, Fabian; Ott, Marion; Schlecht, Ingmar; Wang, Runxi
    Abstract: This paper proposes a game-theoretic model to analyze the strategic behavior of inc-dec gaming in market-based congestion management (redispatch). We extend existing models by considering incomplete information about competitors' costs and a finite set of providers. We find that these extensions do not dissolve inc-dec gaming, which already occurs in our setup of two regions. We also benchmark market-based redispatch against grid investment, cost-based redispatch, and the Vickrey-Clarke-Groves mechanism. The comparison highlights a significant inefficiency of market-based redispatch and inflated redispatch payments. Finally, we study seven variations of our basic model to assess whether different market fundamentals or market design changes mitigate inc-dec gaming. None of these variations eliminate inc-dec gaming entirely.
    Keywords: Energy market,Game theory,Auctions/bidding,Congestion management,Inc-dec gaming
    JEL: D43 D44 L13 Q41 Q48
    Date: 2022
  62. By: Blanc, Corin
    Abstract: Nous étudions ici les déterminants de l’acceptabilité de trois politiques environnementales en France : l’augmentation des taxes sur les combustibles fossiles comme le pétrole, le gaz et le charbon, les subventions publiques aux énergies renouvelables comme l’énergie solaire ou éolienne et l’interdiction de la vente des équipements ménagers les moins performants sur le plan énergétique.Cette analyse est rendue possible grâce au module Attitudes to Climate Change and Energy de la vague 8 déployée par l’European Social Survey en 2016. Nous analysons les ressemblances de ces déterminants avec les caractéristiques spécifiques aux soutiens des Gilets jaunes. Nous montrons d’abord que les Français s’opposent plus à une taxe sur les carburants que leurs voisins européens. Ensuite, nous étudions les effets des caractéristiques socio-démographiques sur l’acceptabilité de ces politiques. Enfin, nous observons qu’un sentiment de forte responsabilité personnelle envers le changement climatique est corrélé avec un plus fort soutien envers les politiques environnementales. Au contraire, le manque de confiance envers autrui, l’une des principales caractéristiques subjectives des Gilets jaunes et de leurs soutiens, affecte seulement l’acceptabilité de la politique fiscale.
    Keywords: France, Acceptabitité, Taxe Carbone, Transition écologique
    Date: 2022–12
  63. By: Blackman, Allen; Bonilla, Jorge Alexander; Villalobos, Laura
    Abstract: In cities around the world, Covid-19 lockdowns have improved outdoor air quality, in some cases dramatically. Even if only temporary, these improvements could have longer-lasting effects on policy by making chronic air pollution more salient and boosting political pressure for change. To that end, it is important to develop objective estimates of both the air quality improvements associated with Covid-19 lockdowns and the benefits these improvements generate. We use panel data econometric models to estimate the effect of Bogotás lockdown on fine particulate pollution, epidemiological models to simulate the effect of reductions in that pollution on long-term and short-term mortality, and benefit transfer methods to estimate the monetary value of the avoided mortality. We find that in its first year of implementation, on average, Bogotás lockdown cut fine particulate pollution by more than one-fifth. However, the magnitude of that effect varied considerably over the course of the year and across the citys neighborhoods. Equivalent permanent reductions in fine particulate pollution would reduce long-term premature deaths by more than one-quarter each year, a benefit valued at $670 million per year. Finally, we estimate that in 2020-2021, the lockdown reduced short-term deaths by 31 percent, a benefit valued at $180 million.
    Keywords: Pollution; COVID-19; lockdown; Colombia; panel data; integrated exposure-response model; benefit transfer
    JEL: Q51 Q52 Q53 Q56 Q58 I15
    Date: 2021–11
  64. By: Yang, Xiuleng; McCoy, Emma; Hough, Katherine; de Nazelle, Audrey
    Abstract: Traffic restriction measures may create safer and healthier places for community members but may also displace traffic and air pollution to surrounding streets. Effective urban planning depends on understanding the magnitude of changes resulting from policy measures, both within and surrounding intervention areas; these are largely unstudied in the case of Low traffic Neighbourhoods (LTN). We evaluated impacts of three LTNs in the London Borough of Islington, UK, on air pollution and traffic flows in and around intervention areas, based on monthly Nitrogen Dioxide (NO2) and traffic volume data provided by the local authority. We identified pre- and post-intervention monitoring periods and intervention, boundary and control sites. We then adapted the generalised difference in differences approach to evaluate the effects within LTNs and at their boundary. We found that LTNs have the potential to substantially reduce air pollution and traffic in target areas, without increasing air pollution or traffic volumes in surrounding streets. These results provide sound arguments in favour of LTNs to promote health and wellbeing in urban communities.
    Keywords: built environment; car-free; generalised difference-in-differences; NO; planning; policy
    JEL: C1
    Date: 2022–11–18
  65. By: Thomas Eichner; Rüdiger Pethig
    Abstract: In the standard theoretical literature on forming international environmental agreements (IEAs) countries use to be self-interested materialists and stable coalitions are small. This paper analyzes IEA games with countries that exhibit Kantian moral behavior. Countries may behave morally with respect to both emissions (reduction) and membership in an IEA. If countries are emissions Kantians or membership Kantians the outcome of the corresponding IEA games is socially optimal. To model more realistic Kantian behavior, we define an emissions [membership] moralist as a country whose welfare is the weighted average of the welfare of an emissions [membership] Kantian and a materialist. The game with emissions moralists produces stable coalitions not larger than those in the standard game with materialists. The game with membership moralists yields stable coalitions that are increasing in the membership morality. Finally, we consider countries who are moderate moralists with respect to both emissions and membership. In that encompassing IEA game the size of the coalition is increasing in the emissions morality, the membership morality, and in the weight of the membership moralist’s welfare. Depending on parameter values, the grand coalition may or may not be attained if one of the moral parameter increases and tends towards one.
    Keywords: international environmental agreement, stable coalitions, moral behavior, Kantian ethics
    JEL: C72 Q50 Q58
    Date: 2022
  66. By: An, Jiyoun (Kyung Hee University); Park, Bokyeong (Kyung Hee University); Bae, Yujin (Kyung Hee University); Ahn, Hyeji (Kyung Hee University); Ha, Kiwook (Kyung Hee University)
    Abstract: 기후변화의 완화 및 적응에 필요한 투자자금의 조달 수단 중 하나인 녹색채권(green bond) 발행이 최근 5년간 10배 이상 증가하였다. 녹색채권은 기후변화 대응 자금의 조달 기능과 기업의 브랜드 가치 제고에 도움이 될 수도 있지만, 그린워싱의 위험도 동시에 높인다. 이런 문제에 대응하기 위해 최근 녹색채권의 규제체계가 빠르게 진화하고 있다. 본 보고서는 녹색채권 시장 및 규제체계 현황, 그리고 우리의 정책과제에 관한 최초의 종합적 보고서다. The mitigation and adaptation of climate change require large-scale investment in green projects. Green bonds, which are liquid financial instruments used to finance climate mitigation, adaptation, and green projects, have shown rapid growth in issuance in recent years. Besides financing for climate change, green bonds help ESG management by enhancing the issuer’s reputation for eco-friendly activities. Further, they may create, namely, greenium to reduce the cost of financing.In 2007, green bonds were first issued by multilateral development banks such as the European Investment Bank and the World Bank. The global issuance volume of green bonds soared from about $800 million in 2007 to $320 billion in 2020, and the total cumulative volume reached $1.5 trillion by October 2021. In 70 countries, sovereign institutions and private companies issued green bonds. The issuance by private companies accounted for 77.9% of the total number of issuance and 63.9% of the total amount. Financial companies accounted for 46.0% of private issuances, higher than non-financial companies, 31.9%. In 40 countries, the public sector, such as the central and local governments, public corporations, and public institutions, issued green bonds, accounting for 25.6% of the total issuance volume. Although developed regions such as Europe and the United States and international organizations have been leading their issuance, it is notable that emerging countries such as China are fast increasing the issuance recently. Since a Korean institution first issued green bonds overseas in 2013, by October 2021, the total stock of green bonds issued at home and abroad by Korea’s public institutions or private companies reached 43.5 billion dollars. In particular, the issuance of green bonds in 2021 increased explosively, approximately ten times more than in the previous year. Green bonds need a regulatory system defined as the institutional framework regarding the requirements for being a green bond and the means of verifying the requirements and of penalizing for theirviolation. The International Capital Markets Association (ICMA) and the Climate Bonds Initiative (CBI) presented the Green Bond Principles as the basis for the green bond regulatory framework. (the rest omitted)
    Keywords: 환경정책; 자본시장; Environmental policy; capital market
    Date: 2022–06–30
  67. By: Chiara Castelli (Fondazione Eni Enrico Mattei and Wiener Institut fur Internationale Wirtschaftsvergleiche); Marta Castellini (Fondazione Eni Enrico Mattei and Department of Civil, Environmental and Architectural Engineering, University of Padua); Emanuele Ciola (Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia); Camilla Gusperti (Fondazione Eni Enrico Mattei); Ilenia Gaia Romani (Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia); Sergio Vergalli (Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia)
    Abstract: The Water, Energy, Food and Ecosystems (WEFE) nexus refers to the system of complex and highly non-linear interconnections between these four elements. It now represents the basic framework to assess and design policies characterized by an holistic environmental end economical perspective. In this work, we provide a systematic review of the macroeconomic models investigating its components as well as combinations of them and their interlinkages with the economic system. We focus on four different types of macroeconomic models: Computable General Equilibrium (CGE) models, Integrated Assessment Models (IAMs), Agent-based Models (ABMs), and Dynamic Stochastic General Equilibrium (DSGE) models. On the basis of our review, we find that the structure of IAMs is currently the most used to represent the nexus complexity, while DSGE models focus only on single components but appear to be better suited to account for the randomization of exogenous shocks. CGE models and ABMs could be more effective on the side of the policy perspective. Indeed, the former can account for interlinkages across sectors and countries, while the latter can define theoretical frameworks that better approximate reality.
    Keywords: Agent-based, Computable general equilibrium, Dynamic stochastic general equilibrium, Integrated assessment, Macroeconomic models, Water-energy-food ecosystems nexus
    JEL: Q18 Q25 Q43 Q54 Q57
    Date: 2022–11
  68. By: Lazarus, Jessica; Broader, Jacquelyn; Cohen, Adam; Bayen, Alexandre PhD; Shaheen, Susan PhD
    Abstract: The State of California is currently moving forward with a road usage charge (RUC) demonstration program, creating promising research opportunities to examine the potential social equity implications of a shift from a gas tax to a RUC system in California. RUC . To this aim, this study investigates the relative burden of gas taxes and mileage-based RUC across various sociodemographic and geographic dimensions by examining key trends in road use, vehicle ownership, fuel consumption, use of RUC-related technologies, and attitudes/opinions related to RUC adoption. Expert interviews were conducted to increase understanding of the potential opportunities and challenges of a RUC system, particularly regarding social equity. The interviews included transportation industry professionals as well as representatives from community-based and other stakeholder organizations to understand best practices for RUC design and implementation, identify stakeholders’ concerns and potential ways to address them, and inform the design and analysis of a survey of Californians.
    Keywords: Engineering
    Date: 2022–12–01
  69. By: Camille Salesse (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier)
    Abstract: I estimate the relationship between income, the number of days of exposure to the four main air pollutants and the proportion of "cocktail days" with French municipal data over the period 2012-2018. I find contrasting results between rural and urban areas. The most affluent urban municipalities have on average a lower number of pollution days compared to the poorest urban municipalities. In urban areas, the pollution days are composed of an equal proportion of cocktail days between the poorest and the most affluent municipalities. On the other hand, in the rural areas the better-off municipalities have on average a higher number of days of pollution, composed of more toxic mixtures, compared to the poorer municipalities. I also show that the pollution levels and the difference in the number of pollution days between the better-off and poorer municipalities are higher in urban areas.
    Keywords: air pollution, cocktail, inequality, environmental justice
    Date: 2022–12–02
  70. By: Olivier Chanel (AMSE - Aix-Marseille Sciences Economiques - EHESS - École des hautes études en sciences sociales - AMU - Aix Marseille Université - ECM - École Centrale de Marseille - CNRS - Centre National de la Recherche Scientifique)
    Abstract: This article offers an approach incorporating latency into the process for evaluating long‑term mortality and into its economic valuation, following a temporary impact. It is applied to the effects of COVID‑19 activity restrictions, in the spring of 2020, on ambient air pollution in France. These effects are evaluated in terms of Life Years Gained (LYG) and in monetary terms for two air pollution indicators. This approach is compared to a standard estimate on the basis of difference. It gives results that are lower by a factor of 3.7 to 5.5 for LYG and, on account of the additional effect of discounting, gives an economic valuation that is lower by a factor of 4.7 to 6.9. These results show that an adapted valuation of the long‑term health benefits, then their translation into monetary terms, is essential in order to compare the long‑term consequences of temporary exogenous impacts or policies.
    Abstract: Cet article propose une approche intégrant le temps de latence dans le processus d'évaluation de la mortalité de long terme et dans sa valorisation économique, suite à un choc transitoire. Il l'applique aux conséquences des restrictions d'activité en lien avec la Covid‑19 au printemps 2020 sur la pollution de l'air ambiant en France. Ces conséquences sont évaluées en termes d'années de vie gagnées (AVG) ainsi qu'en termes monétaires pour deux indicateurs de pollution de l'air. Cette approche est comparée à une estimation standard par différence. Elle conduit à des résultats inférieurs d'un facteur 3.7 à 5.5 pour les AVG et, du fait de l'influence additionnelle de l'actualisation, à une valorisation économique inférieure d'un facteur 4.7 à 6.9. Ces résultats indiquent qu'une évaluation adaptée des bénéfices sanitaires de long terme, puis leur traduction en termes monétaires, est essentielle pour comparer les conséquences à long terme de politiques ou de chocs exogènes transitoires.
    Keywords: COVID‑19,long‑term mortality,activity restrictions,air pollution,economic valuation,Covid‑19,mortalité de long terme,restrictions d’activité,pollution de l’air,évaluation économique
    Date: 2022–10
  71. By: Tsvetan Tsvetanov (Department of Economics, University of Kansas, Lawrence, KS 66045)
    Abstract: The pass-through of gasoline taxes to retail prices plays a vital role in determining whether a fuel tax suspension policy is effective at providing financial relief to consumers. Given the increased interest in utilizing such “tax holidays†to mitigate the rise of gasoline prices, it is important to obtain updated and precise location-specific pass-through estimates that will inform the ongoing policy efforts. Using daily city-level data from a sample of 108 cities in 15 East Coast states and the District of Columbia during the period February 1, 2022-June 30, 2022, I estimate an average pass-through rate of gasoline taxes of 79%. My subsequent analysis reveals considerable heterogeneity across locations, with less than full pass-through in most “tax holiday†states. Consistent with the prior literature, I find evidence that gasoline content regulations, refinery capacity constraints, and wholesale storage constraints may have contributed to this heterogeneity.
    Keywords: gasoline prices; gasoline tax; tax incidence; tax holiday
    JEL: H22 H71 Q41 Q48
    Date: 2022–12
  72. By: Cafferata, Fernando G.; Hoffmann, Bridget; Scartascini, Carlos
    Abstract: Environmental policies are characterized by salient short-term costs and long-term benefits that are difficult to observe and to attribute to the government's efforts. These characteristics imply that citizens' support for environmental policies is highly dependent on their trust in the government's capability to implement solutions and commitment to investments in those policies. Using novel survey data from Mexico City, we show that trust in the government is positively correlated with citizens' willingness to support an additional tax approximately equal to a days minimum wage to improve air quality and greater preference for government retention of revenues from fees collected from polluting firms. We find similar correlations using the perceived quality of public goods as a measure of government competence. These results provide evidence that mistrust can be an obstacle to better environmental outcomes.
    Keywords: Trust;Mexico;Publicly provided private goods;Public services quality;Air pollution
    JEL: Q53 Q52 Q56 H23 H41 H42
    Date: 2021–08
  73. By: Xu, Yuelu; Elbakidze, Levan; Etienne, Xiaoli
    Abstract: The rapid development of unconventional oil and gas (UOG) has raised public concerns about its land use and competition with agriculture. Using county-level data from 1997 to 2018, we find that on average, UOG development negatively affected crop acreage in the contiguous U.S. However, there exists significant regional heterogeneity. The relationship is positive in Southwestern region, U-shaped in Great Plains, and negative in Appalachia. There is significant difference in crop acreage between counties with and without UOG after 2008 in the contiguous U.S. and Great Plains. The reduction in crop acreage after 2008 was highest in Great Plains.
    Keywords: Agricultural and Food Policy, Land Economics/Use, Resource /Energy Economics and Policy
    Date: 2022–01
  74. By: Jon Ellingsen; Caroline Espegren
    Abstract: We estimate the earnings losses of displaced petroleum workers using a matched employer-employee longitudinal data set from Norway, coupled with an event-study framework of the oil price drop in 2014. Displacement leads to sizable and persistent earnings losses, and the magnitudes are particularly large for petroleum workers moving to other industries. More importantly, we document that almost 70 percent of the earnings losses can be attributed to lost industry-specific earnings premiums caused by workers moving from an industry characterized by large resource rents. In contrast, worker-industry match effects are negligible.
    Keywords: Dutch disease, Resource Movements, Difference-in-Differences, Labor mobility, Displaced
    Date: 2022–12
  75. By: Kimon Keramidas (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Adrien Bidaud-Bonod (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes)
    Abstract: MOTIVATION-OBJECTIVE - Hydrogen (H2): promising vector in the race to reach to net-zero - Many announced national strategies & investments: RePowerEU, Japanese H2 Strategy… - Current production based on gas and coal (70 MtH2, 750 MtCO2) - How to supply large enough quantities of H2 while making it a lower-GHG vector than the fuels it replaces?
    Keywords: Hydrogen
    Date: 2022–11–29
  76. By: Dean Hyslop (Motu Economic and Public Policy Research); Lynn Riggs (Motu Economic and Public Policy Research); David Maré (Motu Economic and Public Policy Research)
    Abstract: This paper analyses the effects of the Winter Energy Payment (WEP), that was introduced as part of the 2018 Families Package. The WEP amounts to a relatively small fraction of receiving households’ income and total expenditure (nearly 7% of main benefit support on average, 5% of total income support, and about 4% of total household income and expenditure); but is a substantial fraction of energy expenditures (120% on average, and 60% median). We focus on four sets of analyses: the WEP effects on recipient expenditure patterns (particularly on power) and self-report measures of wellbeing; whether WEP affected health outcomes, as measured by hospitalisations; the financial incentive of WEP to be on a main benefit during the winter months; and whether WEP had any effect on the receipt of hardship grants. Our analyses find predominantly statistically insignificant effects of the WEP across each of these outcomes, either because the effect sizes or the samples are relatively small, making it difficult to draw definite conclusions. However, the direction of estimated effects are generally suggestive that the WEP caused recipient households to increase their expenditures on electricity and power, alleviated material hardship and improved wellbeing, and positively affected health outcomes. We find little evidence of any increase in benefit receipt in response to the increased financial incentives of the WEP to be on-benefit.
    Keywords: Heating; benefits; energy expenditures; health; hardship; employment
    JEL: H24 H53 I14 I38
    Date: 2022–12
  77. By: Zunian Luo
    Abstract: This paper examines the effect of the federal EV income tax subsidy on EV sales. I find that reduction of the federal subsidy caused sales to decline by $43.2 \%$. To arrive at this result, I employ historical time series data from the Department of Energy Alternative Fuels Data Center. Using the fact that the subsidy is available only for firms with fewer than 200,000 cumulative EV sales, I separate EV models into two groups. The treatment group consists of models receiving the full subsidy, and the control group consists of models receiving the reduced subsidy. This allows for a difference in differences (DiD) model structure. To examine the robustness of the results, I conduct regression analyses. Due to a relatively small sample size, the regression coefficients lack statistical significance. Above all, my results suggest that federal incentives designed to promote EV consumption are successful in their objectives.
    Date: 2022–10
  78. By: Blyde, Juan S.; Ramírez, Mayra A.
    Abstract: Empirical analyses that rely on micro-level panel data have found that exporters are generally less pollutant than non-exporters. While alternative explanations have been proposed, firm level data has not been used to examine the role of destination markets behind the relationship between exports and pollution. In this paper we argue that because consumers in high-income countries have higher valuations for clean environments than consumers in developing countries, exporters targeting high-income countries are more likely to improve their environmental outcomes than exporters targeting destinations where valuations for the environment are not high. Using a panel of firm-level data from Chile we find support to this hypothesis. A 10 percentage point increase in the share of exports to high-income countries is associated with a reduction in CO2 pollution intensity of about 16%. The results have important implications for firms in developing countries aiming to target high-income markets.
    Keywords: exports;environment;climate change;emissions
    JEL: F14 F18 Q56
    Date: 2022–01
  79. By: Rouhani, Omid
    Abstract: I review a New York Times best-seller book, Drawdown: The Most Comprehensive Plan Ever Proposed to Reverse Global Warming, edited by Paul Hawken. Drawdown provides many interesting solutions, descriptions, and arguments regarding the global impacts of climate change. Indeed, the book sets forth around 80 solutions and 20 coming to attractions (future options for combating climate change). In this review, however, I focus primarily on the book’s transport solutions. Overall, the book comes short of offering innovative and cost-effective solutions, in contrast to other sectors’ solutions. I believe the reason is the book’s narrow view regarding the overall impacts of transportation and latent opportunities in the sector.
    Keywords: Transportation; Climate change; Policies; GHG emissions.
    JEL: Q01 Q20 Q54 R42 R48
    Date: 2022–12
  80. By: Simona Pojar
    Abstract: Environmental assessments are a crucial aspect of green budgeting as they help to understand the impact and effectiveness of government policies in reaching the climate and environmental objectives. They are also useful to better grasp the link between inputs and outputs within the budgetary process. This paper presents an overview of such practices across EU Member States, covering both ex-ante impact assessments and ex-post evaluations. It also demonstrates how other green budgeting tools, such as environmental performance and impact indicators and sovereign green bonds, can help developing environmental assessment methodologies. Overall, only few Member States have incorporated environmental assessments into their regular budgeting cycle, highlighting their extensive resource requirements. Building environmental assessment methodologies on already existing green budgeting tools can ease the process. It also helps ensuring consistency between different green practices and definitions at the national level and avoiding duplication of efforts.
    JEL: H5 H61 Q58 Q51
    Date: 2022–12
  81. By: Baker, Lucy
    Abstract: South Africa is the only country in sub-Saharan Africa to have enacted a carbon tax to date. Although the country was ahead of the curve when it began considering the tax’s implementation in 2010, it took until 2019 for the Carbon Tax Act to be passed (RSA 2019). By this time 58 carbon taxes in 46 countries and 31 subnational jurisdictions had been implemented. This Research in Brief is a summary of ICTD Working Paper 150 by Lucy Baker.
    Keywords: Governance,
    Date: 2022
  82. By: Murray Petrie; Mr. Fabien Gonguet; Ozlem Aydin Sakrak; Bryn Battersby; Jacques Charaoui; Mr. Claude P Wendling
    Abstract: This How to Note develops the “green public financial management (PFM)” framework briefly outlined in an earlier Staff Climate Note (2021/002, published in August 2021). It illustrates, how climate change and environmental concerns can be mainstreamed into government’s institutional arrangements in place to facilitate the implementation of fiscal policies. It provides numerous country examples covering possible entry points for green PFM – phases in the budget cycle (strategic planning and fiscal framework, budget preparation, budget execution and accounting, control, and audit), legal framework or issues that cut across the budget cycle, such as fiscal transparency or coordination with State Owned Enterprises or with subnational governments. This How to Note also summarizes practical guidance for implementation of a green PFM strategy, underscoring the need for a tailored approach adapted to country specificities and for a strong stewardship role of the Ministry of Finance.
    Keywords: Public financial management; green budgeting; green public financial management; mainstreaming; climate change adaptation; climate change mitigation
    Date: 2022–12–08
  83. By: Laszlo Bokor (Magyar Nemzeti Bank (the Central Bank of Hungary))
    Abstract: This paper presents the pilot top-down climate stress test of the Hungarian banking system over the 2020-2050 horizon. The focus is on a core indicator of financial soundness, the ratio of non-performing loans. Three scenarios are considered with different grades of compliance with the Paris Agreement. Results show that, by 2050, the sectoral excess ratios of non-compliance are scattering from 0 to 19 percentage points.
    Keywords: climate stress test, banking system, non-performing loans, sectoral granularity
    JEL: C51 C53 G21 Q54
    Date: 2022
  84. By: Anneleen Vandeplas; Istvan Vanyolos; Mauro Vigani; Lukas Vogel
    Abstract: With policy ambitions at an all-time high, the green transition is set to accelerate over the next decade and trigger significant structural change in EU labour markets. While aggregate employment impacts of the green transition may remain contained, shifts are likely to occur between sectors, firms, occupations, and regions. This calls for policymakers to anticipate and address the distributional risks of climate policy. Three types of jobs (‘green’, ‘white’ and ‘brown’) are distinguished that would be differently affected. Brown jobs would be most negatively affected. While on aggregate, their share is relatively small, impacts may be concentrated in sectors and regions. As the ease of labour reallocation will crucially depend on the similarity of location and skills of the jobs that are newly created, demographic characteristics of workers in brown sectors are discussed. It is argued that with the right policy support, transition costs can be mitigated, particularly at the current juncture, where abour markets are tight. At the same time, regional socio-economic specificities need to be accounted for. Policy action should focus on providing inclusive social protection, education and training, individualised re-employment support, temporary job subsidies, and effective regional development policy. Acting in anticipation can improve policy effectiveness. Lessons should be drawn from past structural transformations aimed at economic diversification. At the same time, care should be taken to counter political backlash against climate policies based on job-killing arguments with evidence of positive employment effects in well-managed cases and clear communication on policy strategies to address distributional consequences.
    JEL: J21 J23 J24 L52 Q28
    Date: 2022–12
  85. By: Melone, Alessandro (Ohio State University); Randl, Otto (Vienna University of Economics and Business); Sogner, Leopold (IHS, Vienna and Vienna Graduate School of Finance); Zechner, Josef (Vienna University of Economics and Business)
    Abstract: The return correlation between U.S. stocks and oil has shifted from negative to positive since 2008. We use a return decomposition framework to demonstrate that the underlying reason for this structural change is a shift in the correlation between cash flow news for the two assets. Intuitively, as the U.S. turned from an oil importer to a net exporter, the correlation between the cash flow news associated with oil and the U.S. stock market turned positive. Our findings help to understand the set of potential determinants of equity-commodity correlations and the diversification benefits of investing in commodities.
    JEL: E44 G11 G12 Q43
    Date: 2022–11
  86. By: Li, Kun
    Abstract: To quantify the growth in GHG emissions related to international trade, we build an extensive database for export-related production and transportation GHG emissions covering 189 countries and 10 sectors from 1990 to 2014. We employ this database to quantify the contribution of production and international transportation to total export-related GHG emissions from Latin America and the Caribbean and decompose growth in these to contributions of the increase in the regions trade flows, shifts in the composition of trade partners, changes in the traded product basket, and technological progress.
    Keywords: Emission Intensity;Transportation Mode
    JEL: Q56 F18
    Date: 2021–09
  87. By: Linda Livingstone; Peter Börkey; Rob Dellink; Frithjof Laubinger
    Abstract: The world's raw materials consumption is expected to nearly double by 2060. This is particularly alarming because materials extraction, processing, use and waste management lead to significant environmental pressures. A circular economy aims to transform the current linear economy into a circular model to reduce the consumption of finite material resources by recovering materials from waste streams for recycling or reuse, using products longer, and exploiting the potential of the sharing and services economy.This paper underlines the synergies policy makers can create between different resource-efficient and circular economy transition objectives when designing policy packages. It also highlights potential trade-offs that may arise in their implementation. The paper shows that the existing OECD policy analysis provides a toolkit for governments to take more ambitious actions toward a resource-efficient, circular economy. In addition, OECD modelling studies project that the transition can bring significant environmental gains while preserving economic growth and social objectives.
    Keywords: circular economy, environmental policy, recycling, resource efficiency
    JEL: O13 Q38 Q53 Q58
    Date: 2022–12–20
  88. By: Stephen K. Dimnwobi (NnamdiAzikiwe University, Awka, Nigeria); Kingsley I. Okere (Gregory University, Uturu, Nigeria); Favour C. Onuoha (Evangel University Akaeze, Nigeria); Chukwunonso Ekesiobi (Igbariam, Nigeria)
    Abstract: Agricultural productivity remains pivotal to the sustenance of the economies and livelihoods of Sub-Saharan Africa (SSA) countries. Given the emerging threat of energy and environmental uncertainties globally, this study makes a foray into understanding the link among energy poverty, environmental degradation and agricultural productivity in 35 SSA nations in particular, and the nature of their impacts across the sub-region constituents namely; the Central, Eastern, Western and Southern sub-regional blocs in general. To begin, our identified variables comprised of the following: Energy Poverty Index, derived using the principal component analysis, agricultural value added as a share of GDP served as a measure of agricultural productivity and ecological footprint to represent environmental degradation. Subsequently, the instrumental variable generalized method of moment (IV†GMM) technique was implemented for the aggregate SSA model, while the IV-two stage least square technique was adopted for the sub-regional estimations for the Central, East, West and South African blocs respectively. Major findings from the SSA model revealed that whereas the index of energy poverty has a significant positive influence, ecological footprint exhibited an inverse and significant impact on agricultural productivity, while the Central, East, West and South African models yielded mixed results given regional disparities in economic development, regional variations in agricultural productivity and an imbalance of available resources. Policy recommendations were suggested to, among other things, transform the energy, environmental and agricultural fortunes of the region.
    Keywords: Agricultural Productivity, SSA; Energy Poverty, Environmental Degradation, Africa’s sub-region
    Date: 2022–01
  89. By: Harstad, Bård (Dept. of Economics, University of Oslo)
    Abstract: Inspired by the negotiations leading up to the Paris Agreement on climate change, I study a bargaining game where every party is proposing only its own contribution, before the set of pledges must be unanimously approved. I show that, with uncertain tolerance for delay, each equilibrium pledge maximizes an asymmetric Nash product. The weights on others' payoffs increase in the uncertainty, but decrease in the correlation of the shocks. The weights vary pledge to pledge, and this implies that the outcome is generically inefficient. The Nash demand game and its mapping to the Nash bargaining solution follow as a limiting case. The model sheds light on the Paris climate change agreement, but it also applies to negotiations between policymakers or business partners that have differentiated responsibilities or expertise.
    Keywords: Bargaining games; the Nash program.
    JEL: C78 D78
    Date: 2021–06–18
  90. By: Elliott Cappell; Sadhu Johnston; Jennifer Winter; Gabriel Eidelman; Tomas Hachard; Ruth Rosalle (University of Toronto)
    Abstract: Climate change is a national and international issue. Nevertheless, municipalities around the world have cemented themselves as key players in reducing emissions and adapting to the increase in extreme weather events. The third report in the Who Does What series focuses on the role of Canadian municipalities play in the fight against climate change, and how that role can complement and be supported by other orders of government. Jennifer Winter notes that municipalities have limited direct control over emissions within their boundaries, but can have large indirect effects due to their substantial populations. She lays out a series of policies that municipalities can work toward – both independently and in cooperation with other orders of government – from buildings to transportation, waste to land use. Elliott Cappell argues that, when it comes to enhancing climate resilience, Canadian municipalities are often both too big and too small: too big to tackle hyper-local issues but too small to address issues at scale. He argues for ways municipalities can break down silos to better confront the climate challenge, and how the provinces and federal government can best support municipal action. Sadhu Johnston concludes with six recommendations to all orders of government that would help improve action and collaboration in climate policy. The recommendations range from addressing the skills gap at the municipal level through a climate education program to implementing provincial mandates requiring municipal climate plans and enhancing intergovernmental cooperation.
    Keywords: Canada, municipalities, climate policy, climate change, intergovernmental relations
    JEL: H70 Q54
    Date: 2022–08
  91. By: Koneberg, Filiz; Jansen, Anika; Kutz, Vico
    Abstract: Die KOFA-Studie 3/2022 untersucht, welche Berufe für den Ausbau der Solar- und Windenergie notwendig sind und wie die Fachkräftesituation aktuell in diesen Berufen aussieht. Die Studie identifiziert 190 Berufe, die für den Ausbau der Solar- und Windenergie benötigt werden. Mehr als die Hälfte der Berufe, die für den Ausbau benötigt werden, sind bereits jetzt eng auf dem Arbeitsmarkt und werden auch in anderen Branchen dringend gesucht. Insgesamt fehlen in den relevanten Berufen 216.000 Fachkräfte. Ganz besonders relevant sind Fachkräfte in der Bauelektrik.
    Date: 2022
  92. By: Köppl-Turyna, Monika; Köppl, Stefan; Bittó, Virág
    Abstract: In den kommenden Jahrzehnten wird der Klimawandel eine der größten Herausforderungen für die österreichische und europäische Wirtschaft darstellen. Zwar kann die österreichische Wirtschaft bereits als überdurchschnittlich energieeffizient bezeichnet werden, jedoch besteht die Notwendigkeit, CO2-Emissionen durch Investitionen und insbesondere Innovationen zu reduzieren. Darüber hinaus ist es aus geopolitischer Sicht wünschenswert, die Abhängigkeit von etwa russischen Gasimporten nicht durch weitere Abhängigkeiten zu ersetzen - wie etwa bei den Importen der Solarkomponenten, wo China nahezu Monopolposition genießt. Demnach ist der Ausbau von eigenen, europäischen Technologien ein zentrales Element, um Resilienz und Diversifizierung der Versorgung zu erreichen. Zu erwähnen ist auch, dass in Österreich verglichen zu anderen europäischen Ländern nur ein sehr geringer Anteil des BIP, der in Risikokapital investiert wird, von den Pensionskassen stammt. Dieser Beitrag beschäftigt sich mit der Frage, inwiefern Risikokapital, einen Beitrag zur Entwicklung grüner Technologien in Europa und Österreich leisten kann. Aufgrund der Besonderheiten der "Cleantech"-Branche ist eine Kooperation zwischen privater und öffentlicher Hand unabdingbar. Wir schlagen folgende Maßnahmen vor: 1. Sicherung der Nachfrage nach Grünen Technologien, um höhere Renditen und niedrigere Risiken für Kapitalgeber zu gewährleisten. 2. Verbesserung der Rahmenbedingungen für Risikokapitalgeber etwa durch eine Reform der Mitarbeiterbeteiligung oder der Besteuerung von Carried Interest. 3. Entwicklung von Spin-Off Strategien, die sich an Best Practices innerhalb Europas orientieren. 4. Indirekte (hybride) öffentliche Risikokapitalfinanzierung durch Dachfondsmodelle. 5. Öffentliche Kofinanzierung der Risikokapitalinvestitionen unter Beibehaltung der privaten Risikoprofile und marktüblichen Konditionen, um so Verzerrungen am Markt zu verhindern. 6. Ausbau der kapitalgedeckten Altersvorsorge, um somit auch Pensionskassen zu veranlassen künftig höhere Summen in Risikokapital zu investieren.
    Date: 2022
  93. By: Li, Ziqi
    Abstract: Ridesharing, compared to traditional solo ride-hailing, can reduce traffic congestion, cut per-passenger carbon emissions, reduce parking infrastructure, and provide a more cost-effective way to travel. Despite these benefits, ridesharing only occupies a small percentage of the total ride-hailing trips. This study provides a reproducible and replicable framework that integrates big trip data, machine learning models, and explainable artificial intelligence (XAI) to better understand the factors that influence people's decisions to take or not to take a shared ride.
    Date: 2022–04–01
  94. By: Julien Guyot (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique); Akhil Rao; Sebastien Rouillon (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique)
    Abstract: All space-based economic growth requires use of Earth's orbital space. But as rocket and satellite technologies become cheaper, congestion and pollution threaten to reduce terrestrial access to space-based services like GPS and remote sensing and severely limit the potential for space-based growth. We propose a unifying model and a graphical framework to represent the long-term sustainable size of the satellite fleet and its economic value as a function of the launch rate, as well as its effects on the orbital environment. We show how the framework can be used to consider long-term orbital outcomes emerging under different management institutions, derive policy instruments which maximize the economic value of orbit use, and consider the effects of different technological innovations accounting for behavioral responses to the innovations. We conclude with a discussion of open questions in orbit-use management which are both relevant to policymakers around the world and likely to generate insights into environmental management and sustainable growth.
    Abstract: La croissance de l'économie spatiale se base sur l'exploitation l'orbite terrestre. Mais à mesure que les améliorations technologiques réduisent les coûts des fusées et des satellites, l'encombrement et la pollution de l'environnement orbital menacent de compromettre l'accès à des services tels que le GPS et la télédétection, limitant d'autant le potentiel de croissance du secteur. Nous proposons un cadre d'analyse graphique représentant la taille et la valeur économique d'une flotte de satellites durable à long terme, en fonction du rythme de lancement des satellites, tenant compte des effets sur l'environnement orbital. Nous montrons comment ce cadre d'analyse permet de décrire les conséquences à long terme de différents modes de gestion et de déterminer des instruments politiques poussant le secteur à maximiser la valeur économique de l'utilisation de l'orbite, ainsi que d'envisager les effets de certaines innovations technologiques une fois prise en compte les adaptations comportementales des agents économiques que celles-ci entraîneront. Nous concluons en abordant diverses questions ouvertes, que nous croyons à la fois pertinentes pour les décideurs politique.
    Keywords: Space economics, Orbital debris, Sustainability
    Date: 2022–12–09

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