nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒01‒16
sixty-two papers chosen by
Roger Fouquet
London School of Economics

  1. Optimal climate policy as if the transition matters By Campiglio, Emanuele; Dietz, Simon; Venmans, Frank
  2. The Impact of Carbon Taxes on the Value of Fossil-Fuel Reserves and the Efficiency of Climate Policy By William Nordhaus
  3. European Economic impacts of cutting energy imports from Russia : A computable general equilibrium analysis By Sigit Perdana; Marc Vielle; Maxime Schenckery
  4. Demand-side policies for power generation in response to the energy crisis: a model analysis for Italy By Alice Di Bella; Massimo Tavoni
  5. The Impact of Electric Vehicle Fleets on the European Electricity Markets: Evidences from the German Passenger Car Fleet and Power Generation Sector By Maria Juliana Suarrez Foréro; Frédéric Lantz; Pierre Nicolas; Patrice Geoffron
  6. What if? The economic effects for Germany of a stop of energy imports from Russia By Rüdiger Bachmann; David Baqaee; Christian Bayer; Moritz Kuhn; Andreas Löschel; Benjamin Moll; Andreas Peichl; Karen Pittel; Moritz Schularick
  7. Global Energy and Climate Outlook 2022: Energy trade in a decarbonised world By KERAMIDAS Kimon; FOSSE Florian; DIAZ RINCON Andrea; DOWLING Paul; GARAFFA Rafael; ORDONEZ Jose; RUSS Peter; SCHADE Burkhard; SCHMITZ Andreas; SORIA RAMIREZ Antonio; VANDYCK Toon; WEITZEL Matthias
  8. Energy and Mineral Security in the European Union: Metal Requirements for Renewable and Nuclear Intensive Electricity Mixes By Qu, Chunzi; Bang, Rasmus Noss
  9. Worldwide LCOEs of decentralized off-grid renewable energy systems By Jann Michael Weinand; Jan G\"opfert; Julian Sch\"onau; Patrick Kuckertz; Russell McKenna; Leander Kotzur; Detlef Stolten
  10. Market Mechanisms for Low-Carbon Electricity Investments: A Game-Theoretical Analysis By Dongwei Zhao; Sarah Coyle; Apurba Sakti; Audun Botterud
  11. Data-Driven Prediction and Evaluation on Future Impact of Energy Transition Policies in Smart Regions By Chunmeng Yang; Siqi Bu; Yi Fan; Wayne Xinwei Wan; Ruoheng Wang; Aoife Foley
  12. Energy behavior in Karlsruhe and Germany By Klarmann, Martin; Pade, Robin; Fichtner, Wolf; Lehmann, Nico
  13. 러시아의 동북아 에너지 전략과 한-러 신협력 방안: 천연가스 및 수소 분야를 중심으로(Russia’s Energy Strategy in the Northeast Asian Region and New Korea-Russia Cooperation: Focusing on the Natural Gas and Hydrogen Sectors) By Park, Joungho; Kang, Boogyun; Kim, Seok Hwan; Kwon, Won Soon; Kovsh, Andrey
  14. Estimation of carbon emissions embodied in India’s exports By Shifali Goyal; Areej A. Siddiqui
  15. 에너지전환시대 중동 산유국의 석유산업 다각화 전략과 한국의 협력방안: 사우디아라비아와 UAE를 중심으로(Petroleum Industry Diversification in the Middle East and Its Policy Implications for Korea in the Era of Energy Transition) By Lee, Kwon Hyung; Son, Sung Hyun; Jang, Yunhee; Ryou, Kwang Ho; Lee, Dawoon
  16. On Stranded Assets and Climate Risk: Are Financial Markets the Last Resort? By Mouez Fodha; Djamel Kirat; Chahir Zaki
  17. Pass-Through of Alternative Fuel Policy Incentives: Evidence from Diesel and Biodiesel Markets, the U.S. Renewable Fuel Standard, and Low Carbon Fuel Standards in California and Oregon By Mazzone, Daniel; Smith, Aaron; Witcover, Julie
  18. Improving Credit Quantification Under the LCFS: The Case for a Fractional Displacement Approach By Murphy, Colin
  19. Unlocking CO2 Infrastructure Deployment: The Impact of Carbon Removal Accounting By Emma Jagu; Olivier Massol
  20. Challenges to Iraq’s Environment: Applying the Water-Energy-Food Nexus Framework By Bassam Yousif; Omar El-Joumayle; Jehan Baban
  21. Beyond climate economics orthodoxy: impacts and policies in the agent-based integrated-assessment DSK model By Francesco Lamperti; Andrea Roventini
  22. Potential Effects of the EU’s Carbon Border Adjustment Mechanism on the Turkish Economy By Sevil Acar; Ahmet Atil Asici; A. Erinç Yeldan
  23. Electricity Distribution Systems in Europe : An Overview of Contemporary Regulatory Challenges By Pedro H. Perico E Santos; Olivier Massol
  24. The Role of Global Value Chains in Outsourcing Greenhouse Gas Emissions By Halit Yanikkaya; Abdullah Altun; Pinar Tat
  25. Fighting climate change: international attitudes towards climate policies By Dechezlepretre, Antoine; Fabre, Adrien; Kruse, Tobias; Planterose, Bluebery; Sanchez Chico, Ana; Stantcheva, Stefanie
  26. The Role of NGOs in Climate Policies: The Case of Tunisia By Adel Ben Youssef
  27. 글로벌 탄소중립 시대의 그린뉴딜 정책과 시사점(Green New Deal for Carbon-neutrality and Trade Policy in Korea) By Lee, Jukwan; Kim, Jong Duk; Moon, Jin-Young; Eom, Jun Hyun; Kim, Ji Hyeon; Suh, Jeongmeen
  28. The Role of Renewable Energy Consumption in Promoting Sustainability and Circular Economy. A Data-Driven Analysis By Laureti, Lucio; Costantiello, Alberto; Leogrande, Angelo
  29. Are Temporary Oil Supply Shocks Real? By Johan Brannlund; Geoffrey R. Dunbar; Reinhard Ellwanger
  30. On the Use of General Equilibrium Model to Assess the Impact of Climate Policy in Latvia By Olegs Krasnopjorovs; Daniels Jukna; Konstantins Kovalovs
  31. COMPARATIVE ANALYSIS OF THE FINANCIAL PERFORMANCE OF COAL MINING COMPANIES USING RATIO ANALYSIS YEAR 2019-2021 (Studies at PT Baramulti Suksessarana Tbk, PT Bukit Asam Tbk, PT Golden Eagle Energy Tbk, and PT Indika energy Tbk) By Fahriza, Aurora
  32. emIAM v1.0: an emulator for Integrated Assessment Models using marginal abatement cost curves By Weiwei Xiong; Katsumasa Tanaka; Philippe Ciais; Daniel J. A. Johansson; Mariliis Lehtveer
  33. Still your grandfather's boiler: Estimating the effects of the Clean Air Act's grandfathering provisions By Bialek, Sylwia; Gregory, Jack; Revesz, Richard L.
  34. The quality of electricity supply: a comparison among Italian regions By Simona Galano; Luca Sessa; Simone ZuccolalÃ
  35. Promoting Environmental Sustainability in Africa: Evidence from Governance Synergy By Awa Traoré; Cheikh T. Ndour; Simplice A. Asongu
  36. Climate Change Around the World By Per Krusell; Tony Smith
  37. The redistributive effects of inflation: a microsimulation analysis for Italy By Nicola Curci; Marco Savegnago; Giordano Zevi; Roberta Zizza
  38. Developing Environmentally Friendly Solutions for On-Demand Food Delivery Service By Hao, Peng; Liu, Haishan; Liao, Yejia; Boriboonsomsin, Kanok; Barth, Matthew J
  39. Nudges to Increase the Effectiveness of Environmental Education: New evidence from a field experiment By IGEI Kengo; KUROKAWA Hirofumi; ISEKI Masato; KITSUKI Akinori; KURITA Kenichi; MANAGI Shunsuke; NAKAMURO Makiko; SAKANO Akira
  40. The Effect of the COVID-19 Pandemic on the Electricity Consumption in Romania By Ioana-Ancuta Iancu; Cosmin Pompei Darab; Stefan Dragos Cirstea
  41. Energy recovery on the agenda. Waste heat: a matter of public policy and social science concern By Antoine Fontaine; Laurence Rocher
  42. Internalizing negative environmental impacts from wind power production. Coasian bargaining, offsetting schemes and environmental taxes By Mads Greaker; Cathrine Hagem; Andreas Skulstad
  43. Modern Invisible Hazard of Urban Air Environment Pollution When Operating Vehicles That Causes Large Economic Damage By Bitok, Jacob
  44. Reverse Causality between Oil Policy and Fiscal Policy?: The Venezuelan Experience By Manzano, Osmel; Saboin, José Luis
  45. Production privée ou maîtrise d’ouvrage publique pour accélérer la réalisation des centrales solaires en Afrique ? By Nicolas Guichard,; Christian de Gromard,; Jérémy Gasc,; Étienne Espagne,; Martin Buchsenschutz,; Benoît Gars,; Laetitia Labaute.
  46. GIS Approach Applied to Tourist Bus Route Design on Lanzarote Island By Roberto Rendeiro Martín-Cejas; Rafael Suárez Vega; Pedro Pablo Ramirez Sanchez
  47. Climate Change and Fiscal Sustainability: Risks and Opportunities By Matthew Agarwala; Matt Burke; Patrycja Klusak; Kamiar Mohaddes; Ulrich Volz; Dimitri Zenghelis
  48. The Effect of a Carbon Tax on The Egyptian Economy: A General Equilibrium Analysis By Abeer Elshennawy; Dirk Willenbockel
  49. Macroeconomic and distributional consequences of net zero policies in the United Kingdom By Jon Pareliussen; Aurelien Saussay; Josh Burke
  50. Air Pollution and Firm-Level Human Capital, Knowledge and Innovation By Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H.
  51. Corruption: A Brutal Enemy of Economic Diversification in MENA Oil Exporters By Siham Matallah
  52. Familiarity Facilitates Adoption: Evidence from Electric Vehicles By Jonathan Libgober; Ruozi Song
  53. Viet Nam’s green industrial path between carbon and climate exposures By Guilherme Magacho; Etienne Espagne; Irene de Eccher; Grégoire Sempé; Michel Simioni
  54. Auction designs to increase incentive compatibility and reduce self-scheduling in electricity markets By Conleigh Byers; Brent Eldridge
  55. Exploring non-residential technology adoption: an empirical analysis of factors associated with the adoption of photovoltaic systems by municipal authorities in Germany By Maren Springsklee; Fabian Scheller
  56. The Local Human Capital Costs of Oil Exploitation By Balza, Lenin; De Los Rios, Camilo; Jimenez Mori, Raul Alberto; Manzano, Osmel
  57. The intergovernmental fiscal outlook and the implications of Russia’s war against Ukraine, high energy prices and inflation By OECD
  58. Energy Poverty, Environmental Degradation and Agricultural Productivity in Sub-Saharan Africa By Stephen K. Dimnwobi; Kingsley I. Okere; Favour C. Onuoha; Chukwunonso Ekesiobi
  59. Judging Nudging: Toward an Understanding of the Welfare Effects of Nudges Versus Taxes By John List; Matthias Rodemeier; Sutanuka Roy; Gregory Sun
  60. The effectiveness of carbon pricing : The role of diversification in a firm's investment decision? By Compernolle, Tine; Kort, Peter M.; Thijssen, Jacco J. J.
  61. The effect of rising energy and consumer prices on household finances, poverty and social exclusion in the EU By MENYHERT Balint
  62. Certificats d’Economies d’Energie : Ne Pas Oublier les Fondamentaux ! By Benoit Ferres; Jacques Millery; Maxime Schenckery

  1. By: Campiglio, Emanuele; Dietz, Simon; Venmans, Frank
    Abstract: The optimal transition to a low-carbon economy must account for adjustment costs in switching from dirty to clean capital, technological progress, and economic and climatic shocks. We study the low-carbon transition using a dynamic stochastic general equilibrium model with emissions abatement costs calibrated on a large energy modelling database, solved with recursive methods. We show how capital inertia puts upward pressure on emissions and temperatures in the short run, but that nonetheless it is optimal to actively disinvest from – to ‘strand’ – a significant share of the dirty capital stock. Conversely, clean technological progress, as well as uncertainty about climatic and economic factors, lead to lower emissions and temperatures in the long run. Putting these factors together, we estimate a net premium of 33% on the optimal carbon price today relative to a ‘straw man’ model with perfect capital mobility, fixed abatement costs and no uncertainty.
    Keywords: adjustment costs; carbon price; climate change; low-carbon transition; stranded assets; technological progress; uncertainty
    JEL: C61 E22 H23 Q54 Q55
    Date: 2022–12–14
  2. By: William Nordhaus (Cowles Foundation, Yale University)
    Abstract: The present study analyzes the impact of carbon pricing along with other policies on the value of fossil fuel resources, CO2 emissions, and economic welfare. It employs a model based on the Hotelling analysis of resource values and calibrates this approach to data on fossil resources, costs, demands, and CO2 emissions. Total fossil-fuel resource rents are estimated to be $17 trillion (2021 US$) without carbon pricing. Oil and gas rents are unchanged for low carbon taxes but would decline by 40% with a $100/tCO2 price. The losses in producer values would be only about 10% of the carbon tax revenues. The study also shows that other policies Ð such as ones involving ethical investing or subsidies for renewable energy Ð are very inefficient and poor substitutes for carbon pricing.
    Date: 2022–08
  3. By: Sigit Perdana (EPFL - Ecole Polytechnique Fédérale de Lausanne); Marc Vielle (EPFL - Ecole Polytechnique Fédérale de Lausanne); Maxime Schenckery (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles)
    Abstract: The recent economic sanctions against Russia can jeopardise 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 non-Russian 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
  4. By: Alice Di Bella; Massimo Tavoni
    Abstract: In order to mitigate the impacts of the energy crise, the European Union has proposed various measures. For the power sector a directive prescribes a shift of 5% of the demand in 10% of the peak hours, plus a voluntary 10% overall demand reduction. Here we use a power system model to quantify the implications of this policy for the Italian power sector, as it stands today and under the transformation required to meet the climate goals of the Fit-for-55. We find that policymakers would need to incentivize electricity consumption in the middle of the day while discouraging it in the early morning and late afternoon. We also highlight the benefits of the decarbonization strategy in the context of uncertain gas prices: for a gas price at or above 50 euro/MWh, power generation through gas is reduced by more than one third, approaching what needed to comply with the Fit-for-55. Finally, we quantify the value of demand side management strategies to curb fossil resource consumption and to reduce curtailed electricity under a high renewable scenario.
    Date: 2022–12
  5. By: Maria Juliana Suarrez Foréro (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, Technocentre Renault [Guyancourt] - RENAULT); Frédéric Lantz (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Pierre Nicolas (Technocentre Renault [Guyancourt] - RENAULT); Patrice Geoffron (LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The rapidly increasing participation of renewable energies (REn) into the electric mix, clearly traces the trends for the decarbonization goals in the European Union. Under the priority sale conditions established by governments, the commercialization of REn plays an important role in the consolidation of market prices, which are on a decreasing trend with large fluctuations that reduce the profit in the power sector and therefore, the interest of potential investors. The incorporation of small power capacities, available with a considerable fleet of electric vehicles (EV) disposed to support the bulk power system through an intelligent, and possibly bidirectional recharging system (the vehicle grid integration VGI), could have a positive impact on the electricity market as well as in CO2 emissions. In this context, our purpose is to simulate the impact of a large development of EV on the electricity market andthe economic surplus of the power sector. Through a VGI tool that includes an algorithm of smart charging, we simulate the behavior of a fleet composed by some millions of EV as follows: a decentralized VGI algorithm of smart charging included in each EV estimates the energy consumption in time of the EV fleet. For a specific number of EV, we simulate the aggregated charge on the power grid, and anticipate the total expected load curve for one day. We use the estimated load curve as input in an electricity market model for calculating the producer's surplus over one year. We show that the increasing EV fleet significantly decreases the fluctuation of the residual electricity demand as well as the electricity price. Consequently, this has a positive impact on the surplus of the sector.
    Keywords: Energy Transition, Electricity Markets, Merit order Effect, Vehicle Grid Integration
    Date: 2022–01–01
  6. 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); 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)
    Abstract: This article discusses the economic effects of a potential cut-off of the German economy from Russian energy imports. We show that the effects are likely to be substantial but manageable. In the short run, a stop of Russian energy imports would lead to a GDP decline in range between 0.5% and 3% (cf. the GDP decline in 2020 during the pandemic was 4.5%). (i) In the case of an import stop, imports of oil and coal from Russia can be substituted from other countries, but the situation in the gas market is more challenging. An increase in gas imports from other countries, substitution of gas used for electricity production by coal or nuclear as well as refilling of storage facilities over the summer can only reduce the shortfall to about 30% of gas consumption or 8% of German energy consumption over the next 12 months. (ii) How would the German economy cope with such a shortfall of gas deliveries? The economic effects crucially depend on substitution and reallocation of energy inputs across sectors. To quantify these effects, we use a state-of the-art multi-sectoral open economy model following Baqaae and Farhi (2021) that accounts for elasticities of substitution and reallocation between different intermediate inputs. In a second step, we turn to a simplified model that helps us derive plausible bounds for the economic effects using observed elasticities for energy inputs. In the Baqaae-Farhi model, the output costs of a Russian import stop remain firmly below 1% of Gross Domestic Product (GDP), or between 80 and 120 Euros per German citizen per year. In a more pessimistic scenario where it proves very difficult to substitute Russian gas in the short-run outside the electricity sector, the economic costs would rise to about 2-2.5% of GDP, or about 1000 Euros per German citizen over 1 year. This comes potentially on top of a large increase in energy prices for household and industry even without a shortfall of gas deliveries. Of course the effects are more detrimental in energy intensive sectors. (iii) Data from the Income and Consumption Survey (EVS) show variation in the expenditure share on energy across the income distribution. However, the distributional consequences of an increase in energy prices appear manageable. A targeted policy towards low-income households without reducing the incentives for households to save energy would be a cost effective way of ensuring a fair burden-sharing across households. It is important to maintain strong incentives for households to reduce gas usage. (iv) Economic policy should aim at strategically increasing incentives to substitute and save fossil energies as soon as possible. In case that an active embargo is politically desired, it should start as soon as possible so that economic agents can use the summer period for adjustment. To reduce dependence on imported energy, it is advisable for the government to commit to elevated fossil energy prices, in particular for natural gas, for an extended period to create incentives for households and industry to adjust quickly.
    Date: 2022–03
  7. By: KERAMIDAS Kimon; FOSSE Florian (European Commission - JRC); DIAZ RINCON Andrea (European Commission - JRC); DOWLING Paul (European Commission - JRC); GARAFFA Rafael (European Commission - JRC); ORDONEZ Jose (European Commission - JRC); RUSS Peter (European Commission - JRC); SCHADE Burkhard (European Commission - JRC); SCHMITZ Andreas (European Commission - JRC); SORIA RAMIREZ Antonio (European Commission - JRC); VANDYCK Toon (European Commission - JRC); WEITZEL Matthias (European Commission - JRC)
    Abstract: This edition of the Global Energy and Climate Outlook (GECO 2022) presents an updated view on the implications of energy and climate policies around the world. Current climate policy pledges and targets imply a rapid decline in greenhouse gas emissions, but there remains both an implementation gap in adopting policies aligned with countries’ mid-term Nationally Determined Contributions and Long-Term Strategies, and a collective ambition gap in reducing emissions to reach the Paris Agreement targets of limit global warming to well below 2°C and pursue efforts to 1.5°C. This report provides insight into the structural evolution of energy trade in a decarbonising world in the coming decades. With a greater share of energy produced domestically, the decarbonisation effort results increased energy self-sufficiency. We examine the role of hydrogen specifically: the share of hydrogen and of derived fuels in total global final energy consumption remain low by 2050 (7% and 5%, respectively). International hydrogen trade is limited (6-11% of hydrogen demand), with most trade taking place via pipeline from neighbouring regions. The trade of hydrogen-derived liquid fuels is more pronounced (up to 25% of these fuels' demand) and takes place over longer distances by ship. Embodied energy trade remains an important element in a decarbonised global economy, while shifting away from embodied fossil fuels towards embodied low-carbon electricity.
    Keywords: Global Energy system, Climate Change, Green House Gas emissions, Nationally determined contributions (NDCs), Long term strategies (LTS), trade, embodied emissions, hydrogen, synthetic fuels, e-fuels
    Date: 2022–12
  8. By: Qu, Chunzi (Dept. of Business and Management Science, Norwegian School of Economics); Bang, Rasmus Noss (Dept. of Business and Management Science, Norwegian School of Economics)
    Abstract: In 2022, the EU finds itself in the midst of an energy crisis due to the outbreak of the war between Russia and Ukraine and has to accelerate its path to energy independence. Part of the EU’s strategy is to double down on the transition to a renewable-intensive energy system. However, this has raised concerns about whether the EU risks swapping one type of energy dependence for another, namely fuel import dependence for metal import dependence. This paper investigates to what extent the EU would rely on metal imports if it is to execute its current energy plan, and whether a nuclear-intensive electricity production system could be a better option. When compared to today’s electricity mix, we find that a renewable-intensive electricity mix will increase the overall energy security in the EU – the reduction in fuel import dependence more than compensates for the increase in metal import dependence. However, we also find that a nuclear-intensive electricity mix can increase the overall energy security in the EU even further. When compared to a renewable-intensive electricity mix, a nuclear-intensive mix does not only have lower metal import requirements in terms of volume and value, but also reduces risk of bottleneck problems related to rare earths and silicone. Still, even with a nuclear-intensive energy mix, the EU will still rely on metal imports, and face potential bottleneck risks in terms of chromium.
    Keywords: Energy policy; Energy security; Mineral security; Renewable energy; Nuclear energy; Ukraine crisis
    JEL: Q28 Q43 Q47 Q48 Q54 Q56
    Date: 2022–12–28
  9. By: Jann Michael Weinand; Jan G\"opfert; Julian Sch\"onau; Patrick Kuckertz; Russell McKenna; Leander Kotzur; Detlef Stolten
    Abstract: Recent events mean that the security of energy supplies is becoming more uncertain. One way to achieve a more reliable energy supply can be decentralised renewable off-grid energy systems, for which more and more case studies are conducted in research. This review gives a global overview of the costs, in terms of levelised cost of electricity (LCOE), for these autonomous energy systems, which range from $0.03/kWh to about $1.00/kWh worldwide in 2021. The average LCOEs for 100% renewable energy systems have decreased by 9% annually between 2016 and 2021 from $0.54/kWh to $0.29/kWh, presumably due to cost reductions in renewable energy and electricity storage. Our overview can be employed to verify findings on off-grid systems, and to assess where these systems might be deployed and how costs are evolving.
    Date: 2022–12
  10. By: Dongwei Zhao; Sarah Coyle; Apurba Sakti; Audun Botterud
    Abstract: Electricity markets are transforming from the dominance of conventional energy resources (CERs), e.g., fossil fuels, to low-carbon energy resources (LERs), e.g., renewables and energy storage. This work examines market mechanisms to incentivize LER investments, while ensuring adequate market revenues for investors, guiding investors' strategic investments towards social optimum, and protecting consumers from scarcity prices. To reduce the impact of excessive scarcity prices, we present a new market mechanism, which consists of a Penalty payment for lost load, a supply Incentive, and an energy price Uplift (PIU). We establish a game-theoretical framework to analyze market equilibrium. We prove that one Nash equilibrium under the penalty payment and supply incentive can reach the social optimum given quadratic supply costs of CERs. Although the price uplift can ensure adequate revenues, the resulting system cost deviates from the social optimum while the gap decreases as more CERs retire. Furthermore, under the traditional marginal-cost pricing (MCP) mechanism, investors may withhold investments to cause scarcity prices, but such behavior is absent under the PIU mechanism. Simulation results show that the PIU mechanism can reduce consumers' costs by over 30% compared with the MCP mechanism by reducing excessive revenues of low-cost CERs from scarcity prices.
    Date: 2022–12
  11. By: Chunmeng Yang; Siqi Bu; Yi Fan; Wayne Xinwei Wan; Ruoheng Wang; Aoife Foley
    Abstract: To meet widely recognised carbon neutrality targets, over the last decade metropolitan regions around the world have implemented policies to promote the generation and use of sustainable energy. Nevertheless, there is an availability gap in formulating and evaluating these policies in a timely manner, since sustainable energy capacity and generation are dynamically determined by various factors along dimensions based on local economic prosperity and societal green ambitions. We develop a novel data-driven platform to predict and evaluate energy transition policies by applying an artificial neural network and a technology diffusion model. Using Singapore, London, and California as case studies of metropolitan regions at distinctive stages of energy transition, we show that in addition to forecasting renewable energy generation and capacity, the platform is particularly powerful in formulating future policy scenarios. We recommend global application of the proposed methodology to future sustainable energy transition in smart regions.
    Date: 2022–12
  12. By: Klarmann, Martin; Pade, Robin; Fichtner, Wolf; Lehmann, Nico
    Abstract: Climate change mitigation is one of the greatest human challenges. The associated transformation of energy supply and demand to low-carbon energy sources requires not only technical solutions, but also involves consumers and as such, represents a holistic societal process. To date, however, the energy-related behavior of consumers is poorly understood. Against this backdrop, energy panels may be a viable solution to monitor behavior and collect adequate data over long periods. Yet, consumer panels are often established at the local level, raising questions about whether a sample is representative of the population of interest. We take a first step into answering this question by comparing a local sample of household consumers from the Karlsruhe area in Southwest Germany with a sample from Germany. Our analyses are based on a sample of more than 1, 000 respondents surveyed via computer-assisted telephone interviews (CATI) in summer 2021. Overall, the results show strong similarities between Karlsruhe and Germany, both in terms of sociodemographics and energy consumption behavior. Nonetheless, there are also differences between the two samples, for example, in terms of political orientation or climate concern. Future research should examine whether and to what extent these differences are relevant to subsequent analyses and how a panel can still be used to approximate the population under investigation.
    Keywords: Energy consumption, Citizen attitudes, Energy panel, Consumer behavior
    Date: 2022
  13. By: Park, Joungho (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kang, Boogyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Seok Hwan (Hankuk University of Foreign Studies); Kwon, Won Soon (Hankuk University of Foreign Studies); Kovsh, Andrey (Saint Petersburg State University)
    Abstract: 본 연구는 천연가스와 수소 분야를 중심으로 한국과 러시아 간의 새로운 에너지 협력방안을 모색하는 데 핵심 목표를 두고 있다. 특히 지구촌 차원에서 본격화되고 있는 기후변화와 탈탄소화 등 국제 에너지 환경 변화를 반영한 새로운 에너지 협력 방향과 과제를 제시하고자 했다. This study explores new directions for energy cooperation between Korea and Russia, focusing on the areas of natural gas and hydrogen. In particular, we derive new directions and tasks for energy cooperation between the two countries, reflecting changes in the international energy environment, such as climate change and decarbonization, which are in full swing at the global level. In Chapter 2, this paper examines the geopolitics of energy coming into the 21st century and Russia’s new energy strategy. First, while tracing changes in energy geopolitics and hegemony in the 21st century, we analyzed changing factors that directly or indirectly affect the new hegemony structure, such as technological development, the growth of alternative energy markets, and climate change issues. Then, we reviewed the main contents and points of Russia’s Energy Strategy to 2035 and hydrogen energy development plan, identifying the direction of Russia’s energy strategy toward Northeast Asia.In Chapter 3, this study conducts an in-depth analysis of the energy cooperation strategies of China and Japan, major Northeast Asian countries, with Russia. In particular, we comprehensively reviewed the progress, major achievements and characteristics of China and Japan’s cooperation with Russia in the natural gas sector. In addition, this study draws policy implications for Korea based on a careful review of energy policy directions for Russia pursued by China and Japan, which have recently declared carbon neutrality.Chapter 4 comprehensively evaluates Korea’s energy strategy andKorea-Russia energy cooperation. Korea’s energy cooperation with Russia has been an area of great interest since the early days of diplomatic relations between Korea and Russia. However, looking at the overall situation so far, energy cooperation between the two countries has had nearly no remarkable achievements other than the Korea Gas Corporation introducing natural gas from Sakhalin. Cooperation between the two countries in the field of gas remains at the level of commercial relations based on purchases and sales. In this regard, we proposed a plan for Korea-Russia cooperation that reflects changes in the new energy market.(the rest omitted)
    Keywords: 경제협력; 에너지산업; economic cooperation; energy industry
    Date: 2021–12–30
  14. By: Shifali Goyal (Indian Institute of Foreign Trade, New Delhi, India); Areej A. Siddiqui (Indian Institute of Foreign Trade, New Delhi, India)
    Abstract: This study tries to estimate the carbon emissions embodied in India’s exports to five of its major trading partners, i.e., USA, UAE, Hong Kong, China and Bangladesh, for the year 2015.In order to quantify the same, Bilateral Trade Input-Output (BTIO) model is being used. The study found huge emission embodiment in India’s exports, and also calculated the emission intensity of the goods exported. Once the calculation of emissions embodied in exports is done, the paper further highlights that carbon emissions embodied in India’s exports is not determined by just the quantum of the goods exported, but composition of goods traded and emission intensity of the traded goods also have a substantial impact over emission embodiment. Hence, the study suggests to shift India’s energy consumption patterns from carbon intensive ones to the cleaner and renewable ones, and to reduce its emission intensity
    Keywords: Carbon emissions, Bilateral Trade, Input-Output Analysis, Bilateral Trade Input-Output Model (BTIO)
    JEL: C67 F18 F64 Q56
    Date: 2021
    Abstract: 지난 2020년 3월 세계보건기구(WHO)가 팬데믹을 선언한 이후 기후위기에 대한 세계 각국의 공동대응 노력이 강화되었다. 2050년 탄소중립 목표를 설정함으로써 화석연료에 대한 의존도를 크게 줄이고 저탄소 에너지원을 더 많이 활용하는 에너지 전환(energy transition)을 추진하고 있는 것이다. 이에 따라 석유산업에 대한 의존도가 큰 중동 산유국은 석유산업의 다각화가 에너지전환시대에 생존하기 위한 국가 과제가 되었다. 이러한 배경에서 본 연구는 사우디아라비아와 UAE를 중심으로 석유산업 다각화를 위한 주요 계획, 전략, 추진 동향 등을 살펴보고 대외협력관계 분석에 기초한 협력 수요를 파악함으로써 한-중동 석유산업 다각화 협력 확대방안을 제시하고자 한다. 이는 중동 산유국의 핵심 성장동력인 석유산업을 중심으로 미래 협력 가능성을 살펴보고, 향후 보다 심층적인 한중동 경제협력관계를 구축하는 데 기여할 것이다. 또한 그 과정에서 국내 기업이 중동에 진출하여 참여할 수 있는 새로운 사업 기회를 모색하고, 체계적인 진출 전략을 수립하는 데에도 활용할 수 있을 것으로 기대된다.(the rest omitted) <p> The aim of this research is to examine various mid-to-long termplans, policies, and business cooperation cases to promote diversification in the Middle Eastern petroleum industry, suggesting policy proposals for cooperation between Korea and the Middle East to deepen industrial diversification in the region. <p> Chapter 2 analyzes global factors that have influenced the oil industry, and examines the trends of diversification in the oil industry and characteristics of diversification in major countries. Increasing oil price volatility and the expanding efforts of the internationalcommunity to make a transition to a carbon-neutral economy haveacted as a factor in diversifying the oil industry. As the trend of low oil prices has continued since the second half of 2014, the raw materials for manufacturing petrochemical products have become available at cheaper prices, and this has led to increased investment in downstream sectors such as oil refining and petrochemicals. In addition, as efforts to reduce carbon emissions in the oil industry have expanded, the share of natural gas production increased, investment in hydrogen and carbon reduction technology expanded, and digital technology was actively introduced to increase the efficiency of oil industry operations. In the downstream sector, the United States is focusing on ethylene production using ethane derived from shale gas, and China is continuing its efforts to expand facilities and diversify feed stocks to improve its own production capacity. In the area of hydrogen and carbon reduction, European countries such as Norway and Germany, along with the United States, China, and Russia, are increasing investments in hydrogen utilization and green hydrogen technology development.(the rest omitted)
    Keywords: 경제협력; 에너지산업; economic cooperation; energy industry
    Date: 2021–12–30
  16. By: Mouez Fodha (Paris School of Economics); Djamel Kirat (University of Orléans); Chahir Zaki (Cairo University and Economic Research Forum)
    Abstract: The objective of this paper is to examine how financial markets are affected by climate and energy transition risks. Our contribution is thus twofold. First, relying on the overlapping generations’ model, we develop a simple theoretical model by taking into account the interplay between environmental quality and assets market. We show that when agents are sensitive to the environmental quality, they take decisions about savings and investment in line with the need for higher environmental protection. Second, we empirically test this model by assessing the nature and magnitude of the climate and energy transition determinants of the risk premium associated with public debt, with a focus on countries of the Middle East and North Africa (MENA) region, being one of the most abundant regions in natural resources. Our main findings show that fossil fuel subsoil wealth is associated to a higher risk premium. Moreover, this risk increases also with a higher level of CO2 emissions per capita or lower level of environmental performance index (EPI). This confirms how financial markets are accounting for climate and energy-transition risks. We also show that the quality of institutions plays an important role in counterbalancing the effects of climate-related variables on the risk premium. Finally, we conclude that financial markets could foster energy transition and encourage the implementation of effective environmental policies.
    Date: 2021–12–20
  17. By: Mazzone, Daniel; Smith, Aaron; Witcover, Julie
    Abstract: Biodiesel and hydrotreated renewable diesel (RD)—or collectively biomass-based diesel (BBD)—have become integral components of compliance with policies aiming to reduce U.S. transportation sector greenhouse gas emissions. Such policies include the U.S. Renewable Fuel Standard (RFS), California’s Low Carbon Fuel Standard (LCFS), and Oregon’s Clean Fuel Program (CFP). These policies, along with a federal Blender’s BBD Tax Credit (BTC), provide financial incentives for BBD. In this white paper, the authors study pass-through of implicit taxes and subsidies, introduced by federal and state policies, to a variety of diesel and soy biodiesel fuel prices in the context of the U.S. diesel sector, focusing on fossil diesel and soy biodiesel. They apply time series methods techniques to estimate how a variety of diesel fuel price spreads across the country and in California and Oregon responds to changes in the implicit taxes placed on petroleum diesel and the implicit subsidies awarded to biodiesel. The results presented in this paper point to some inefficiencies in the RFS, LCFS, and CFP. The primary contribution of this paper was providing the first set of estimates of pass-through of LCFS implicit taxes and subsidies, and doing so for the diesel sector, a critical player in LCFS compliance. View the NCST Project Webpage
    Keywords: Business, Law, Physical Sciences and Mathematics, Low Carbon Fuel Standard, Clean Fuels Program, Renewable Fuel Standard, biodiesel, pass-through, imperfect competition, climate change, carbon markets
    Date: 2022–12–01
  18. By: Murphy, Colin
    Keywords: Social and Behavioral Sciences, low-carbon fuel, Low Carbon Fuel Standard
    Date: 2022–12–21
  19. By: Emma Jagu (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, Centrale Supélec); Olivier Massol (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, Centrale Supélec, University of London [London], Palais Brogniart)
    Abstract: Carbon removal certification may become a powerful instrument to accelerate decarbonization efforts. In Europe, its implementation is expected to foster the deployment of Bioenergy with Carbon Capture and Storage (BECCS). Yet, the large-scale adoption of BECCS is also limited by the availability of a costly CO2 transportation infrastructure shared with fossil-fueled emitters. In this paper, we examine the interactions between carbon removal accounting (which determines financial incentives for BECCS) and optimal CO2 infrastructure deployment by asking how certification affects the feasibility of BECCS projects. We propose an original economic framework to explore this question and apply it to a real case study in Sweden. We show that, although a carbon removal accounting framework based on a lifecycle methodology discourages investment in inefficient BECCS processes, it may lead to locking out BECCS from CO2 infrastructures. Our results suggest that a trade-off must be found between accurately evaluating carbon removal and avoiding BECCS lock-out. We formulate two policy recommendations to overcome this trade-off: (i) deploying sustainable biomass certification to incentivize more carbonefficient BECCS process, and (ii) stimulating public and private demand for carbon removal credits to induce a higher price for sustainable carbon removal than for carbon mitigation.
    Keywords: Carbon Removal Accounting, Carbon Removal Certification, Negative Emissions, Bioenergy Energy with Carbon Capture and Storage, CO2 infrastructures
    Date: 2022–02–01
  20. By: Bassam Yousif (Indiana State University); Omar El-Joumayle; Jehan Baban
    Abstract: This paper utilizes research on Water-Energy-Food (WEF) nexus to study the relationships between Iraq’s water (requirement and supply), energy (the oil and gas sector), and food production. We survey environmental conditions and note that the quality and availability of water have declined over the last decades, which have posed threats to public health, environmental sustainability, and food security. We next use a variety of data sources to study the interlinkages between these three sectors, including water-energy-food indexes, and explore the state of the agriculture and oil sectors. We point out that water is a key input into both agricultural production and oil extraction, mediating the energy and food sectors and acting to constrain and make rival food and energy outputs. We offer policy recommendations classified into those that seek to overcome internal barriers and others geared towards external constraints.
    Date: 2022–08–20
  21. By: Francesco Lamperti; Andrea Roventini
    Abstract: Though climate physical and transition risks will likely affect socio-economic dynamics along any transition pathways, their unfolding is still poorly understood. This also affects the development of climate-change policies to achieve sustainable growth. In this paper, we discuss a series of results assessing the materiality of climate risks for economic and financial stability and alternative policy pathways by means of the Dystopian Schumpeter meeting Keynes (DSK) agent-based integrated assessment model. Our results suggest the emergence of tipping points wherein physical risks under unmitigated emissions will reduce long-run growth and spur financial and economic instability. Moreover, diverse types of climate shocks have a different impact on economic dynamics and on the chances of observing a transition to carbonless growth. While these results call for immediate and ambitious interventions, appropriate mitigation policies need to be designed. Our results show that carbon taxation is not the most suitable tool to achieve zero-emission growth given its huge economic costs. On the contrary, command-and-control regulation and innovation policies to foster green investments is the best policy mix to put the economy on a green growth pathway. Overall, our results contradict the standard tenets of cost-benefit climate economics and suggest the absence of any trade-off between decarbonization and growth.
    Keywords: climate policy; climate risks; macroeconomic dynamics; agent-based modelling.
    Date: 2022–12–30
  22. By: Sevil Acar (Bogaziçi University Hisar Campus Sariyer Istanbu); Ahmet Atil Asici (Istanbul Technical University); A. Erinç Yeldan (Kadir Has University)
    Abstract: In December 2019, the European Union (EU) announced the European Green Deal (EGD) to create a climate-neutral continent by 2050. Accordingly, the EU Emission Trading System (ETS) will be revised to maintain economic growth against possible losses in competitiveness, leading to “carbon leakage.” The Carbon Border Adjustment (CBA) is one of the mechanisms proposed to tackle the carbon leakage problem; it is an import fee levied by the carbon-taxing region (in this case, the EU) on goods manufactured in non-carbon-taxing countries (in this case, Turkey). The purpose of this paper is to provide a first-order estimate of the potential sectoral impacts of the CBA on the Turkish economy by employing input-output methodology. Our results suggest that the CBA may bring a carbon bill of EUR 1.1-1.8 billion to Turkish exporters in the EU market. The revision of the Intended Nationally Determined Contributions (INDC) target and the ratification of the Paris Climate Agreement at the parliament are two steps that can be taken immediately. Speeding up the ongoing preparatory process of instituting an Emission Trading System (ETS) in Turkey (preferably linked to the ETS), will help minimize economic losses.
    Date: 2021–10–20
  23. By: Pedro H. Perico E Santos (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Olivier Massol (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, University of London [London], Université Paris-Saclay)
    Abstract: In Europe, a significant adaptation of the existing power distribution sector is necessary to support the transition toward low-carbon energy systems and facilitate the massive deployment of low-carbon distributed power technologies. This report first examines the current organization of that industry and highlights the country-specific and diverse nature of the industry structures and the institutional organizations governing the distribution sector. We then discuss the new tasks and roles assigned to Distribution System Operators (DSOs) and shed light on the emerging challenges facing these DSOs. Finally, we highlight and discuss a few emerging research topics on the sector's industrial and institutional arrangements that have important implications for assisting the rapid decarbonization and digitization of European power systems.
    Keywords: Regulation, Industrial organization., Electricity distribution
    Date: 2022–04
  24. By: Halit Yanikkaya (Gebze Technical University); Abdullah Altun (Gebze Technical University); Pinar Tat (Gebze Technical University)
    Abstract: This paper tracks the greenhouse gas (GHG) emissions embedded in global value chains (GVCs) in 186 countries for the period 1990-2015. It then looks at the determinants of the emissions considering both country- and sector-level variables in a gravity-like framework. Our graphical visualization displays that, as expected, developed countries appear to be both major GHG emission producers and outsourcers in the highly fragmented world. Indeed, the trade activities of China, the US, Germany, Japan, and Russia contribute 40 percent of total global emissions. Moreover, while higher capital stock is attributable to higher GHG emissions embedded in GVCs, our empirical results reveal that sectors’ renewable energy consumption can be seen as an emission-decreasing factor. While higher income and financial development levels seem to decrease air quality, regional or global integration in trade agreements seems to be consistent with the current increasing efforts and concerns regarding environmental issues. Given the current trajectory and the findings of this paper, negotiating environmental policies across nations, an adaptation of greener production technologies in the production process, and cost-sharing plans between governments and producers should be carefully considered to decrease environmental degradation and sustain natural resources.
    Date: 2022–08–20
  25. By: Dechezlepretre, Antoine; Fabre, Adrien; Kruse, Tobias; Planterose, Bluebery; Sanchez Chico, Ana; Stantcheva, Stefanie
    Abstract: Using new surveys on more than 40,000 respondents in twenty countries that account for 72% of global CO2 emissions, we study the understanding of and attitudes toward climate change and climate policies. We show that, across countries, support for climate policies hinges on three key perceptions centered around the effectiveness o f the policies in reducing emissions (effectiveness c concerns), t heir distributional impacts on lower-income households (inequality concerns), and their impact on the respondents’ household (self-interest). We show experimentally that information specifically addressing these key concerns can substantially increase the support for climate policies in many countries. Explaining how policies work and who can benefit f rom t hem is critical to foster policy support, whereas simply informing people about the impacts of climate change is not effective. Furthermore, we identify several socioeconomic and lifestyle factors – most notably education, political leanings, and availability of public transportation – that are significantly correlated with both policy views and overall reasoning and beliefs about climate policies. However, it is difficult to predict beliefs or policy views based on these characteristics only.
    Keywords: climate change; climate policies; carbon tax; perceptions; survey; experiment; French Ministry of Foreign Affairs; French Conseil d’Analyse Economique; Spanish Ministry for the Ecological Transition and Demographic Challenge
    JEL: Q54 Q58 D78 H23 P48
    Date: 2022–12–02
  26. By: Adel Ben Youssef (University of Côte d’Azur)
    Abstract: The role of non-governmental organizations (NGOs) in climate policy and the green transition (conservation of biodiversity, energy transition, climate change) is becoming increasingly important worldwide. This paper examines the contribution of NGOs to drafting and implementing climate policy in Tunisia, engaging in climate negotiation processes and activities, and formulating effectiveness criteria related to climate change lobbying at the local, national, and international levels. First, we show that improved working conditions have a positive effect on NGO involvement in climate change actions. Second, greater professionalism has a substantial effect on Elaboration Resilience 2050, Elaboration of a Low Carbon Economy 2050, and climate change training, whereas the effect of the Conferences of the Parties (COPs) is marginally negatively significant. Third, exclusion from the drafting of government laws is a major determinant of involvement in climate change actions. Fourth, NGOs which cooperate with the government and receive funds from international organizations are more likely to be involved in climate change actions, climate policy, climate negotiations, and NGO projects. Fifth, NGOs working on project implementation do not have sufficient resources to undertake several activities simultaneously. Sixth, budget increases and the number of funding sources seem to be positively correlated to engagement in policy changes/negotiations and the implementation of climate projects.
    Date: 2021–12–20
    Abstract: 그린뉴딜은 탄소중립 달성을 위한 환경정책이자 경제성장을 위한 재정정책이다. 이에 대하여 통상정책적 시각과 접근이 필요한 이유는 그린뉴딜이 추구하는 탄소중립과 경제성장이 다자체제와 국제무역시스템에 밀접하게 연결되어 있기 때문이다. 기후변화는 국경을 넘는 글로벌한 이슈이다. 어느 한 지역이나 국가의 노력으로 달성할 수 있는 온실가스 저감 수준에는 한계가 있을 수밖에 없다. 또한 탄소중립 달성을 위해서는 국제경제와 생산 네트워크에 대한 이해가 필수적이다. 생산공급망이 전 세계로 확대되고 가치사슬이 복잡하게 연결된 세계 경제구조 속에서 무역을 고려하지 않고서 성공적인 탄소중립을 이뤄내기는 쉽지 않기 때문이다. 따라서 탄소중립을 목표로 하는 그린뉴딜은 이러한 맥락에서 통상정책 차원에서도 고려될 필요가 있다. 본 연구에서는 탄소중립을 위한 그린뉴딜 정책과 관련하여 통상정책 차원의 시사점을 제공하고자 하였다. This research defines the Green New Deal, as a fiscal policy having both environmental and economic growth as its main objectives. A trade policy perspective and approach has been applied while reviewing the carbon-neutral policy as both carbon-neutrality and economic growth pursued by the Green New Deal are closely linked to the multilateral system and the international trade system. Climate change is a global issue that transcends national borders. There are inevitably limits to the level of greenhouse gas reduction that can be achieved through the efforts of any one region or country. Carbon-neutrality also requires an understanding of the international economy and production networks. Production supply chains are expanding all over the world and value chains are intricately connected. The Green New Deal needs to be considered in terms of trade policy. Therefore, this study tries to provide implications in terms of trade policy in relation to the Green New Deal policy for carbon-neutrality. Chapter 2 introduces carbon-neutral policies that major countries are adopting and compares them with past Green New Deal policies. The latter were introduced in the context of economic stimulus and eco-friendliness during the 2008 global financial crisis. In addition, we compare Korea’s current Green New Deal with its 2008-version called the low-carbon green growth policy to examine the similarities and differences. Although major countries used different names such as ‘Green Deal’ or ‘Green New Deal’ to implement policies for greenhouse gas reduction and economic growth, they were not sufficient in reducing greenhouse gas emissions. Past and current policies generally put more emphasis on short-term employment growth andeconomic stimulus. Korea’s Green New Deal also had limitations while considering carbon-neutrality as a policy goal until the government announced the Green New Deal 2.0 in July 2021.(the rest omitted)
    Keywords: 무역정책; 환경정책; Trade policy; environmental policy
    Date: 2021–12–30
  28. By: Laureti, Lucio; Costantiello, Alberto; Leogrande, Angelo
    Abstract: In this article we investigate the role of “Renewable Energy Consumption” in the context of Circular Economy. We use data from the World Bank for 193 countries in the period 2011-2020. We perform several econometric techniques i.e., Panel Data with Fixed Effects, Panel Data with Random Effects, Pooled OLS, WLS. Our results show that “Renewable Energy Consumption” is positively associated among others to “Cooling Degree Days” and “Adjusted savings: net forest depletion” and negatively associated among others to “GHG net emissions/removals by LUCF” and “Mean Drought Index”. Furthermore, we perform a cluster analysis with the application of the k-Means algorithm optimized with the Silhouette Coefficient and we find the presence of two clusters. Finally, we compare eight different machine learning algorithms to predict the value of Renewable Energy Consumption. Our results show that the Polynomial Regression is the best algorithm in the sense of prediction and that on average the renewable energy consumption is expected to growth of 2.61%.
    Keywords: Environmental Economics, General, Valuation of Environmental Effects, Pollution Control Adoption and Costs, Recycling.
    JEL: Q5 Q50 Q51 Q52 Q53
    Date: 2022–12–25
  29. By: Johan Brannlund; Geoffrey R. Dunbar; Reinhard Ellwanger
    Abstract: Hurricanes disrupt oil production in the Gulf of Mexico because producers shut in oil platforms to safeguard lives and prevent damage. We examine the effects of these temporary oil supply shocks on real economic activity in the United States. We find no evidence that temporary oil supply shocks affect state-level employment or indirectly affect industrial production in sectors not immediately related to oil production. We find that the temporary oil supply shocks have local, temporary price effects—mainly on gasoline prices—and that broader consumer price index inflation is also temporarily affected. In addition, we find no effect on imports, exports, exchange rates or the import price of oil. Our results suggest that oil reserves held by US refineries are largely sufficient to absorb any temporary disruptions to production.
    Keywords: Business fluctuations and cycles; Inflation and prices
    JEL: E31 E32 Q31 Q41 Q43
    Date: 2022–12
  30. By: Olegs Krasnopjorovs (LU - University of Latvia); Daniels Jukna (LU - University of Latvia); Konstantins Kovalovs (LU - University of Latvia)
    Abstract: Ambitious climate policy targets by developed countries towards carbon neutrality created a necessity to model the impact of climate policy on macroeconomic and socioeconomic indicators. Academic literature suggests that Computable General Equilibrium (CGE) model representing the entire economy, linked with a TIMES model reflecting the energy sector in detail, proved to be an effective tool for such modelling. This article contributes to the starting point for creating such a modelling system in the University of Latvia (CGE model) and the Institute of Physical Energetics (TIMES model), focusing on the CGE model. First, it reviews the literature on the use of the CGE model and its effective link with the TIMES model to assess the economic impact of climate policy. Second, it reviews the features of the current Latvian CGE model owned by the University of Latvia, compared to its ORANI-G model prototype. Third, as a list of recommendations, it proposes a roadmap for the future development of the Latvian CGE model to be effectively linked with the TIMES model to assess the impact of climate policy on macroeconomic and socioeconomic indicators.
    Keywords: Computable General Equilibrium model, climate policy modelling, soft-link
    Date: 2022–05–13
  31. By: Fahriza, Aurora
    Abstract: Financial Reports, Financial Performance, Ratio Analysis
    Date: 2022–12–07
  32. By: Weiwei Xiong; Katsumasa Tanaka; Philippe Ciais; Daniel J. A. Johansson; Mariliis Lehtveer
    Abstract: We developed an emulator for Integrated Assessment Models (emIAM) based on a marginal abatement cost (MAC) curve approach. Using the output of IAMs in the ENGAGE Scenario Explorer and the GET model, we derived a large set of MAC curves: ten IAMs; global and eleven regions; three gases CO2, CH4, and N2O; eight portfolios of available mitigation technologies; and two emission sources. We tested the performance of emIAM by coupling it with a simple climate model ACC2. We found that the optimizing climate-economy model emIAM-ACC2 adequately reproduced a majority of original IAM emission outcomes under similar conditions, allowing systematic explorations of IAMs with small computational resources. emIAM can expand the capability of simple climate models as a tool to calculate cost-effective pathways linked directly to a temperature target.
    Date: 2022–12
  33. By: Bialek, Sylwia; Gregory, Jack; Revesz, Richard L.
    Abstract: While vintage differentiation is a highly prominent feature of various regulations, it can induce significant biases. We study these biases in the context of New Source Review-a program within the US Clean Air Act imposing costly sulfur dioxide (SO2) abatement requirements on new boilers but not existing ones. In particular, we empirically investigate how the differential treatment of coal boil- ers shaped the generation landscape by affecting unit utilization, retirement, and emissions. Leveraging a novel dataset covering state-level sulfur dioxide regula- tions for power plants, we show that the differentiation continued to have a strong effect even 30 years after its passage, raising the probability of surviving another year by 1.5 percentage points for grandfathered boilers and increasing their op- erations by around 800 hours annually. We estimate exempted units would have emitted a third fewer emissions per year, had they been subject to NSR. We run back-of-the-envelope calculations to assess the societal damages associated with the delayed retirements, higher utilization and higher emission rates of the grand- fathered boilers. Focusing solely on the additional SO2 emissions, we estimate annual costs of up to $ 65 billion associated with the vintage differentiation in New Source Review.
    Keywords: grandfathering, regulation design, Clean Air Act, power plants, coal
    Date: 2022
  34. By: Simona Galano (Universita' degli Studi di Napoli "Parthenope"); Luca Sessa (Bank of Italy); Simone Zuccolalà (Bank of Italy)
    Abstract: The quality of energy supply is an important determinant of competitiveness for firms and of welfare for families. Analyzing the gaps among Italian regions in the continuity of electrical power supply, this study shows how, on average per user, interruptions are in the South at least double both in number and in duration compared to the Center-North, while the frequency of voltage dips is approximately triple (quadruple for those of major severity). Interruptions are costly: an econometric exercise shows a significant loss of productivity for firms, higher for those with a lower capital intensity (more present in the South) which are likely less equipped with machinery that immunizes them from the risks of supply discontinuity. The persistent disparities in power quality reflect those in the capacity, density and meshing of grid infrastructures, all higher in the Center-North where the demand for electricity is greater and all independent in the South from local government behaviors. Although the Regulatory Authority has set up a system of incentives to foster offered quality, the possibility of offsetting penalties received in the South with bonuses in the North may have contributed to the persistence of the gaps. Recent regulatory innovations, targeted primarily to areas with greater room for improvement, and the programs to intensify and upgrade the electricity infrastructure along the entire supply chain, reserving a relevant quota of investment to Southern regions, could help raising and standardizing the quality of supply throughout the Italian territory, alleviating a context factor that adds up to those impairing the attractiveness of the Southern regions.
    Keywords: electricity, quality, continuity of supply, interruptions, voltage dips, regional inequality, productivity, competitiveness, regulation, infrastructures
    JEL: L94 L51 H44 H54 D24
    Date: 2022–12
  35. By: Awa Traoré (University Cheikh Anta Diop, Dakar, Senegal); Cheikh T. Ndour (University Cheikh Anta Diop, Dakar, Senegal); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: The present study complements the extant literature by assessing how environmental sustainability can be promoted by means of policies that entail the simultaneous implementation of six governance dynamics, notably, political governance (political stability/ no violence and ‘voice & accountability’), economic governance (government effectiveness and regulatory quality) and institutional governance (corruption-control and the rule of law). The study focuses on 44 African countries for the period 2000 to 2020 and the empirical evidence is based on the generalized method of moments (GMM). The findings show that while the individual governance indicators positively influence carbon dioxide (CO2) emissions, the combined or composite governance indicator has a negative effect on CO2 emissions. Moreover, urbanization, economic growth, trade and foreign investment promote CO2 emissions while information and communication technology in terms of mobile phone subscriptions and internet penetration have the opposite effect. Policy implications are discussed.
    Keywords: CO2 emissions, ICT, governance, urbanization, GMM model
    JEL: C33 C52
    Date: 2023–01
  36. By: Per Krusell (Cowles Foundation, Yale University); Tony Smith (Cowles Foundation, Yale University)
    Abstract: The economic effects of climate change vary across both time and space. To study these effects, this paper builds a global economy-climate model featuring a high degree of geographic resolution. Carbon emissions from the use of energy in production increase the Earth's (average) temperature and local, or regional, temperatures respond more or less sensitively to this increase. Each of the approximately 19,000 regions makes optimal consumption-savings and energy-use decisions as its climate (or regional temperature) and, consequently, its productivity change over time. The relationship between regional temperature and regional productivity has an inverted U-shape, calibrated so that the high- resolution model replicates estimates of aggregate global damages from global warming. At the global level, then, the high-resolution model nests standard one-region economy-climate models, while at the same time it features realistic spatial variation in climate and economic activity. The central result is that the effects of climate change vary dramatically across space---with many regions gaining while others lose---and the global average effects, while negative, are dwarfed quantitatively by the differences across space. A tax on carbon increases average (global) welfare, but there is a large disparity of views on it across regions, with both winners and losers. Climate change also leads to large increases in global inequality, across both regions and countries. These findings vary little as capital markets range from closed (autarky) to open (free capital mobility).
    Keywords: climate change, carbon taxes, regional economies
    JEL: H23 Q54 R13
    Date: 2022–07
  37. By: Nicola Curci (Bank of Italy); Marco Savegnago (Bank of Italy); Giordano Zevi (Bank of Italy); Roberta Zizza (Bank of Italy)
    Abstract: We analyse the impact of the marked and unexpected increase in inflation recorded since the second half of 2021 on Italian households’ purchasing power. Exploiting microsimulation tools, we are able to quantify the extent to which government measures supporting households’ incomes and lessening energy price hikes, mitigated the distributional impact of the inflationary shock. According to our estimates, in 2022 the measures attenuated inflation on average by slightly less than 2 percentage points and reduced the impact of the shock on households’ purchasing power by almost €32 billion (from more than €80 billion to less than €50 billion). This implies that in 2022 government intervention reduced the expected drop in purchasing power from an average €3, 200 per household to about €2, 000, with a relatively more marked effect for low-income households. Evaluated on the basis of both their cost for the public finances and their impact on inequality, the strengthening of the electricity and gas social bonuses, targeted at less well-off households, was the most effective intervention while untargeted price reductions (such as the decrease in VAT rates on gas tariffs or lower excise duties on fuel) were the least effective. The one-off allowances (€200 and €150 bonuses) and the other measures affecting take-home pay (reduction of social security contributions paid by employees and the advance partial payment of pension revaluations) were only moderately effective since these measures, being conditional on individual income, also benefit wealthy households.
    Keywords: inflation, energy, redistribution, inequality, microsimulation
    JEL: E31 E21 D31 H23
    Date: 2022–12
  38. By: Hao, Peng; Liu, Haishan; Liao, Yejia; Boriboonsomsin, Kanok; Barth, Matthew J
    Abstract: Goods movement accounts for a significant and growing share of urban traffic, energy use and greenhouse gas emissions (GHGs). This project investigated the vehicle miles travelled (VMT) and emissions impact of on-demand food delivery under different COVID-19 pandemic periods and multiple operational strategies, with real-world scenarios set up in the city of Riverside, California. The evaluation results showed that during COVID-19 the total VMT and pollutant emissions (CO2, CO, HC, NOx) incurred by eat out demand all decreased by 25% compared with the before-COVID-19 period. The system can achieve substantial reductions in vehicle trips and emissions with higher penetration of on-demand delivery. From the dynamic operation perspective, the multi-restaurant strategy (allow food orders to be bundled from multiple restaurants in one driver’s tour) can bring 28% of VMT and emissions reductions while avoiding introducing additional delay compared to the one-restaurant policy (only allow food orders from the same restaurant to be bundled in one driver’s tour). The research results indicate that the delivery platform should provide more reliable service with lower cost to increase the food delivery penetration level, which needs improvement in driver capacity management, eco-friendly delivery strategy, and efficient order allocation system. Meanwhile, to achieve maximum VMT and emissions reduction, the platform should encourage order bundling and employ a multi-restaurant policy to provide higher flexibility to group food orders, especially from restaurants located densely in one shopping plaza or commercial zone. View the NCST Project Webpage
    Keywords: Engineering, Physical Sciences and Mathematics, shared mobility, on-demand food delivery, sustainability, emission evaluation
    Date: 2022–12–01
  39. By: IGEI Kengo; KUROKAWA Hirofumi; ISEKI Masato; KITSUKI Akinori; KURITA Kenichi; MANAGI Shunsuke; NAKAMURO Makiko; SAKANO Akira
    Abstract: We examined the effectiveness of nudge and boost in environmental education classes on students’ attitudes toward environmental issues and energy-saving behaviors. We randomly assigned the target of this study, students in 8 primary schools and 6 junior high schools, with four types of interventions: receiving only environmental education (the control group), education with either nudges (goal-setting of energy-saving actions) or boosts (playing a game with “the tragedy of the commons†setting) only, and education with both nudges and boosts. We confirmed that students subject to boosts significantly became more environmentally conscious in the game and set more goals in the nudge task. The follow-up survey one month after the intervention revealed that students who set more targets in the nudge and boost group showed higher energy-saving awareness and environmental attitudes and took more energy-saving actions and reduced water consumption at home. We also found that even three months after the intervention, students who set more goals in the nudge and boost group were more energy conscious and implemented more energy-saving actions, and reduced water consumption at home.
    Date: 2022–12
  40. By: Ioana-Ancuta Iancu; Cosmin Pompei Darab; Stefan Dragos Cirstea
    Abstract: The COVID-19 pandemic obliged the Romanian government to take drastic measures to contain the virus. More than this, they imposed the heaviest restrictions in the EU. For more than a month, during the lockdown period, everything stopped: schools and universities had only online classes, national and international flights and gatherings were forbidden, and many restrictions for travel were imposed. This paper analyzes the changes that occurred in electricity consumption linked with economic growth, during the pandemic, in Romania. For a better understanding of the correlations between gross domestic product (GDP) and electricity consumption (EC) in different economic contexts, the period 2008–2020 was divided into three series: the 2008–2012 financial crisis and the post-crisis recovery period, the 2013–2019 period of economic growth, and the Q1–Q3 2020 pandemic period. Using correlation coefficients and regression analysis, the authors found that the GDP decoupled from EC in the first period. The increase in GDP led to an increase in the consumption of electricity and the electricity produced from RESs in the second period. In Q3 2020, the real GDP is different from the calculated GDP, due to the pandemic. In Romania, the electricity consumption decreased within the first nine months of the pandemic due to the economic contraction. The electricity that comes from coal and hydropower plants suffered the biggest decrease. If the electricity that comes from NRESs can be adapted to the economic demands, the quantity of electricity that comes from RESs will be influenced by the climate conditions.
    Date: 2021–06–01
  41. By: Antoine Fontaine (EVS - Environnement Ville Société - ENS Lyon - École normale supérieure - Lyon - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris] - UL2 - Université Lumière - Lyon 2 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - UJM - Université Jean Monnet [Saint-Étienne] - ENTPE - École Nationale des Travaux Publics de l'État - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique); Laurence Rocher (EVS - Environnement Ville Société - ENS Lyon - École normale supérieure - Lyon - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris] - UL2 - Université Lumière - Lyon 2 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - UJM - Université Jean Monnet [Saint-Étienne] - ENTPE - École Nationale des Travaux Publics de l'État - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Waste heat from industry or urban facilities represents a largely underused and long disregarded energy source, while heating and cooling count for half the final energy demand in Europe. From the early 2010s onwards, waste heat recovery (WHR) is being recognized as a key challenge for energy transition and tends to be integrated into energy strategies at different levels. This paper provides an analysis of how WHR became a matter of public policy in Europe and in France. Based on a literature review, the analysis shows that WHR has been framed as a techno-economic problem, while some barriers (legal, organizational) to its development remain largely unaddressed. A study of European and French energy agendas illustrates how WHR progressively started to be recognized as an energy resource next to renewables. As a result, questions are raised as to further social science contributions to an extended research agenda addressing WHR
    Keywords: Waste heat recovery,Energy policy,Europe,France,Research agenda
    Date: 2021
  42. By: Mads Greaker; Cathrine Hagem (Statistics Norway); Andreas Skulstad
    Abstract: On the one hand, wind power production is necessary for decarbonizing the electricity sector. On the other hand, we risk replacing one environmental problem with other environmental problems, that is, stopping climate change in exchange with increased loss of pristine land and biodiversity. The present paper provides a novel contribution to the literature on how to regulate the development of wind power plants (WPPs). Current regulation is largely based on a concession system, where both environmental taxes and offset schemes are left unexplored. We develop a theoretical model of WPP development with offsets and environmental taxes. We show that if additional loss of pristine nature and biodiversity is acceptable at some monetary price, establishing an offset market for WPP development and combining it with an environmental tax will be socially desirable. In fact, this solution is preferable to both only having an environmental tax or only having a compulsory offset market. However, if no more loss of pristine land and biodiversity can be tolerated, compulsory and complete offsetting should be the norm. We look at two restoration projects in Norway and evaluate to what extent they could have been used as offsets for a recent WPP development in Norway. We conclude that they can, but an offset scheme demands good measurement methods and regulations to ensure equivalence in the values of ecosystem services lost and gained.
    Keywords: Wind power; Offsetting schemes; Environmental taxes; Resource Equivalency; Analysis; Habitat Equivalency Analysis
    JEL: D62 Q24 Q26 Q42 Q48 Q51 Q56 Q57 Q58
    Date: 2022–12
  43. By: Bitok, Jacob
    Abstract: Modern Invisible Hazard of Urban Air Environment Pollution When Operating Vehicles That Causes Large Economic Damage
    Date: 2022–12–08
  44. By: Manzano, Osmel; Saboin, José Luis
    Abstract: This paper uses a model of intergenerational accounting to simulate the intergenerational distribution of oil wealth in Venezuela. Venezuelan oil production does not seem to follow an optimal extraction path. Nevertheless, this is true if we do not consider what the government does with the resources received from the oil sector. In this paper we explored the interaction of oil policy and fiscal policy using an intergeneration accounting model. We found that these interactions could explain certain outcomes. In particular, the model could explain why the sector was open for investment in 1991 and then “re-nationalized” in 2001. Results suggest that when fiscal policy could leave an important burden to future generations, voters seem to favor a more tax oriented oil policy, leaving the oil in the subsoil.
    Keywords: Fiscal policy;Venezuela;Oil policy;Intergenerational accounting;Fiscal voracity;Oil expropriation cycles
    JEL: E22 O13 E62 E24 E32 N16 H50 H21 N56 L71 Q38 E21 E65 H13 P16
    Date: 2021–05
  45. By: Nicolas Guichard,; Christian de Gromard,; Jérémy Gasc,; Étienne Espagne,; Martin Buchsenschutz,; Benoît Gars,; Laetitia Labaute.
    Abstract: L’Afrique, dont les capacités de production solaire photovoltaïque (PV) sont aujourd’hui faibles comparativement aux autres continents, alors que la ressource solaire y est abondante, connaîtra au cours des prochaines années un « changement d’échelle », c’est-à-dire une forte accélération du rythme de réalisation des centrales PV raccordées aux réseaux électriques, selon les projections établies par l’International Renewable Energy Agency (IRENA) et dans la perspective d’un alignement avec les trajectoires de l’Accord de Paris et des objectifs de développement durable (ODD).
    Keywords: Afrique
    JEL: Q
    Date: 2022–11–30
  46. By: Roberto Rendeiro Martín-Cejas; Rafael Suárez Vega; Pedro Pablo Ramirez Sanchez
    Abstract: Current public transport supply on the Island of Lanzarote is clearly insufficient, and opportunities to substitute private automobiles are extremely limited, for residents and tourists alike. Therefore, this paper analyzes the possibility of introducing a tourist bus service to connect Lanzarote’s main tourist attractions, and it also focuses on a move towards public transport by tourists to reduce the CO2 emitted by excessive private car usage. This work assesses the impact of road transport in accessing tourist activities on Lanzarote Island and its implications for sustainable tourism development. The evaluation is based on the volume of CO2 emissions for the current tourist mobility model on the island and an alternative option such as a tourist bus route. The methodology employed here is the application of a geographical information system (GIS). The study analyzes how to manage the impact of road access to tourist sites through the implementation of a new tourist bus line. The study seeks to evaluate the design of a new bus to deliver tourists to key tourist activities on Lanzarote Island. A GIS-T algorithm is used to compare the level of CO2 emissions from the current tourist mobility model versus the implementation of a new touristic bus. The levels of pollution produced by the present system and the tourist route are compared, and different levels of demand for the new circuit are considered. We conclude that in order to reduce the current levels of emissions by around 15%, some 19.4% of the tourists that currently use hire cars would have to switch to the new tourist bus service.
    Keywords: sustainability; road transport; tourism activity; carbon dioxide emission; geographical information system
    Date: 2021–10–01
  47. By: Matthew Agarwala (Bennett Institute for Public Policy, University of Cambridge); Matt Burke (Norwich Business School, University of East Anglia, UK); Patrycja Klusak (Norwich Business School, University of East Anglia, UK); Kamiar Mohaddes (Judge Business School & King’s College, University of Cambridge, UK); Ulrich Volz (German Development Institute, Germany); Dimitri Zenghelis (Grantham Research Institute, London School of Economics, UK)
    Abstract: Both the physical and transition-related impacts of climate change pose substantial macroeconomic risks. Yet, markets still lack credible estimates of how climate change will affect debt sustainability, sovereign creditworthiness, and the public finances of major economies. We present a taxonomy for tracing the physical and transition impacts of climate change through to impacts on sovereign risk. We then apply the taxonomy to the UK's potential transition to net zero. Meeting internationally agreed climate targets will require an unprecedented structural transformation of the global economy over the next two or three decades. The changing landscape of risks warrants new risk management and hedging strategies to contain climate risk and minimise the impact of asset stranding and asset devaluation. Yet, conditional on action being taken early, the opportunities from managing a net zero transition would substantially outweigh the costs.
    Date: 2021–11–20
  48. By: Abeer Elshennawy (The American University in Cairo); Dirk Willenbockel (University of Sussex.)
    Abstract: Climate change is a reality in Egypt. Temperatures in Egypt have risen 0.34o C/Decade between 1961-2000. Climate change is likely to aggravate water scarcity problems, reduce agricultural yields and agricultural output as parts of the Nile Delta is threatened by inundation due to sea level rise. Reducing carbon emissions is thus essential. Utilizing an Intertemporal General Equilibrium Model, this paper investigates the effect of implementing a carbon tax on economic growth and consumer welfare. Alternative ways to recycle the tax revenue is also considered. The effect of the carbon tax on economic growth depends on the use of the additional tax revenue. If the revenue is used to fund additional government consumption or cash transfers to private households, the effect is mildly contractionary. If the revenue is used to reduce other tax rates in a way that stimulates additional investment, the carbon tax could have a positive impact on economic activity. The carbon tax has no discernible adverse effects on the distribution of household income.
    Date: 2021–12–20
  49. By: Jon Pareliussen; Aurelien Saussay; Josh Burke
    Abstract: This paper presents new simulation results for the UK combining macroeconomic simulations in ThreeME, a computable general equilibrium model, with household-level micro-simulations with the aim to provide consistent estimates of macroeconomic and distributional consequences of policy action to curb greenhouse gas emissions. One main and overarching result is that if an economy-wide and significant carbon price is introduced it leads to large emission reductions. Macroeconomic and distributional consequences are very limited in comparison. Redistributing 30% of total tax revenue as a lump-sum transfer to households would ensure that a majority of income deciles in most regions increase their disposable income, with gains notably in the lower part of the income distribution.
    Keywords: Climate policy, general equilibrium, microsimulation, redistribution
    JEL: H23 H31 H32 Q52 Q58
    Date: 2022–12–19
  50. By: Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H.
    Abstract: This paper investigates the long-run effects of prolonged air pollution on firmlevel human capital, knowledge and innovation composition. Using a novel firm-level dataset covering almost all industrial firms engaged in science and technology activities in China, and employing a regression discontinuity design, we show that prolonged pollution significantly diminishes both the quantity and the quality of human capital at the firm level. More specifically, we show that air pollution affects firm-level human capital composition by reducing the share of employees with a PhD degree and master’s degree, but instead increasing the share of employees with bachelor’s degree. Moreover, the difference in the composition of human capital materially change the knowledge and innovation structure of the firms, with our estimates showing that pollution decreases innovations that demand a high level of creativity, such as publications and inventions, while increasing innovations with a relatively low level of creativity, such as design patents. Quantitatively, on the intensive margin, one μg/m 3 increase in the annual average PM 2.5 concentration leads to a 0.188 loss in the number of innovations per R&D employee. Overall, we show that air pollution has created a gap in human capital, knowledge, and innovation between firms in the north and south of China, highlighting the importance of environmental quality as a significant factor for productivity and welfare.
    Keywords: Pollution, human capital, knowledge, innovation, China
    JEL: O15 O30 O44 Q51 Q56
    Date: 2023–01–03
  51. By: Siham Matallah (University of Oran 2)
    Abstract: This paper aims, on the one hand, to investigate the impact of corruption on economic diversification in 11 oil-abundant Middle East and North Africa (MENA) countries and three successful diversifiers (Canada, Norway, and Malaysia) over the period 1996-2019. This is done using the Arellano-Bond difference Generalized Method of Moments (GMM) estimator that is effective in addressing the endogeneity problem. On the other hand, the paper aims to reveal how much the level of economic diversification will increase if MENA oil exporters have control of corruption scores similar to a successful diversifier like Canada. The main findings indicate that higher control of corruption leads to more diversification while higher oil rents lead to poor diversification in oil-exporting MENA countries. The joint impact of control of corruption and oil rents is effective in boosting economic diversification in MENA oil exporters. The results also reveal that the rate of improvement in diversification brought on by replacing MENA oil exporters’ control of corruption scores with those of Canada is 0.53 percent. Closing the control of corruption gap determines how quickly MENA oil exporters can promote economic diversification. Furthermore, non-Gulf Cooperation Council (GCC) countries need to exert much more effort compared to GCC countries in order to catch up with Canada’s control of corruption level. Most non-GCC countries must first address the serious problem of instability, since the more unstable the environment, the harder it is to control and handle corruption. Length: 30
    Date: 2021–10–20
  52. By: Jonathan Libgober; Ruozi Song
    Abstract: This paper shows that a non-price intervention which increased the prevalence of a new technology facilitated its further adoption. The BlueLA program put Electric Vehicles (EVs) for public use in many heavily trafficked areas, primarily (but not exclusively) aimed at low-to-middle income households. We show, using data on subsidies for these households and a difference-in differences strategy, that BlueLA is associated with a 33\% increase of new EV adoptions, justifying a substantial portion of public investment. While the program provides a substitute to car ownership, our findings are consistent with the hypothesis that increasing familiarity with EVs could facilitate adoption.
    Date: 2022–11
  53. By: Guilherme Magacho (AFD - Agence française de développement); Etienne Espagne (AFD - Agence française de développement); Irene de Eccher (IRD - Institut de Recherche pour le Développement); Grégoire Sempé (IRD - Institut de Recherche pour le Développement); Michel Simioni (UMR MoISA - Montpellier Interdisciplinary center on Sustainable Agri-food systems (Social and nutritional sciences) - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - IRD - Institut de Recherche pour le Développement - CIHEAM-IAMM - Centre International de Hautes Etudes Agronomiques Méditerranéennes - Institut Agronomique Méditerranéen de Montpellier - CIHEAM - Centre International de Hautes Études Agronomiques Méditerranéennes - 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, TSE-R - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Lors de la COP26, le Viet Nam s'est positionné à l'avant-garde de la course mondiale vers le «net zéro», ouvrant ainsi une ère de changement structurel rapide pour le pays. Le Viet Nam entame ce voyage en partant d'une position de forte intensité d'émissions par rapport au reste du monde. Dans le secteur de l'électricité, du gaz et de l'eau, alors que le monde émet moins de 2, 5 kg de CO2 par dollar américain, le Viet Nam émet près de 15 kg de CO2 par dollar américain. Le même schéma se vérifie dans d'autres secteurs. Dans le secteur du textile et de l'habillement, ainsi que dans celui des produits métalliques, le Viet Nam émet environ 2, 5 kg de CO2 par dollar américain, alors que la médiane mondiale est inférieure à 1, 0 kg par dollar américain. Le pays est également relativement exposé aux industries en déclin en termes de contraintes externes, fiscales et socio-économiques. Une faible couverture de protection sociale ajoute à l'impact social potentiel d'une transition rapide. En même temps, le Viet Nam fait partie des pays les plus exposés aux impacts climatiques, ce qui confirme son intérêt spécifique à mener cette «course verte» mondiale. Une analyse transsectorielle de l'exposition montre certains impacts potentiels importants d'un monde à 2°C en termes d'effets externes, fiscaux et socio-économiques. Mais le Viet Nam présente également des opportunités industrielles et technologiques très prometteuses dans un scénario de «course verte» globale. Comparé à d'autres nations d'Asie du Sud-Est, ou même à des économies développées asiatiques comme la Corée, le Viet Nam présente des opportunités industrielles très importantes dans les produits verts moins complexes, mais aussi des opportunités prometteuses dans les produits plus complexes, qui apportent généralement les meilleures opportunités d'emploi et les meilleures capacités techniques. Au cours de la dernière décennie, le Viet Nam a connu la croissance la plus rapide de l'indice de complexité verte parmi les économies d'Asie du Sud-Est, et l'un des potentiels de complexité verte les plus élevés. L'élaboration d'une solide stratégie de développement et d'industrie verte face au changement climatique nécessite de déployer le bon dosage de politiques pour soutenir la diversification dans ces secteurs prioritaires.
    Date: 2022–11–02
  54. By: Conleigh Byers; Brent Eldridge
    Abstract: The system operator's scheduling problem in electricity markets, called unit commitment, is a non-convex mixed-integer program. The optimal value function is non-convex, preventing the application of traditional marginal pricing theory to find prices that clear the market and incentivize market participants to follow the dispatch schedule. Units that perceive the opportunity to make a profit may be incentivized to self-commit (submitting an offer with zero fixed operating costs) or self-schedule their production (submitting an offer with zero total cost). We simulate bidder behavior to show that market power can be exercised by becoming a price taker. Agents can learn to increase their profits via a reinforcement learning algorithm without explicit knowledge of the costs or strategies of other agents. We investigate different non-convex pricing models over a multi-period commitment window simulating the day-ahead market and show that convex hull pricing can reduce producer incentives to deviate from the central dispatch decision. In a realistic test system with approximately 1000 generators, we find strategic bidding under the restricted convex model can increase total producer profits by 4.4% and decrease lost opportunity costs by 2/3. While the cost to consumers with convex hull pricing is higher at the competitive solution, the cost to consumers is higher with the restricted convex model after strategic bidding.
    Date: 2022–12
  55. By: Maren Springsklee; Fabian Scheller
    Abstract: This research article explores potential influencing factors of solar photovoltaic (PV) system adoption by municipal authorities in Germany in the year 2019. We derive seven hypothesized relationships from the empirical literature on residential PV adoption, organizational technology adoption, and sustainability policy adoption by local governments, and apply a twofold empirical approach to examine them. First, we explore the associations of a set of explanatory variables on the installed capacity of adopter municipalities (N=223) in an OLS model. Second, we use a logit model to analyze whether the identified relationships are also apparent between adopter and non-adopter municipalities (N=423). Our findings suggest that fiscal capacity (measured by per capita debt and per capita tax revenue) and peer effects (measured by the pre-existing installed capacity) are positively associated with both the installed capacity and adoption. Furthermore, we find that institutional capacity (measured by the presence of a municipal utility) and environmental concern (measured by the share of green party votes) are positively associated with municipal PV adoption. Economic factors (measured by solar irradiation) show a significant positive but small effect in both regression models. No evidence was found to support the influence of political will. Results for the role of municipal characteristics are mixed, although the population size was consistently positively associated with municipal PV adoption and installed capacity. Our results support previous studies on PV system adoption determinants and offer a starting point for additional research on non-residential decision-making and PV adoption.
    Date: 2022–12
  56. By: Balza, Lenin; De Los Rios, Camilo; Jimenez Mori, Raul Alberto; Manzano, Osmel
    Abstract: This paper explores the impacts of oil exploitation on human capital accumulation at the local level in Colombia, a resource-rich developing country. We provide evidence based on detailed spatial and temporal data on oil exploitation and education, using the number of wells drilled as an intensity treatment at the school level. To find causal estimates we rely on an instrumental variable approach that exploits the exogeneity of international oil prices and a proxy of oil endowments at the local level. Our results indicate that oil has a negative impact on human capital since it reduces enrollment in higher education. Furthermore, it generates a delay in the decision to enroll in higher education and leads students to prefer technical areas of study and programs in social science, business, and law. However, we do not find any effects on quality or tertiary education completion. Our results are robust to a number of relevant specification changes and we stress the role of local markets and spillovers as the main transmission channel. In particular, we find that higher oil production causes an increase in formal wages but that there is no premium to tertiary education enrollment.
    Keywords: Colombia;human capital;natural resource exploitation
    JEL: Q32 Q35
    Date: 2021–07
  57. By: OECD
    Abstract: Less than two years after the start of the COVID-19 pandemic, Russia’s illegal, unprovoked and unjustifiable war of aggression against Ukraine has triggered the biggest military confrontation in Europe since World War II. Many OECD countries have reacted to Russia’s aggression by providing military and humanitarian aid to Ukraine and by imposing economic sanctions on Russia, which has accentuated supply chain disruptions, especially in the energy sector. A combination of these supply shocks with a demand shock caused by expansionary fiscal and monetary policies to tackle the pandemic has created inflationary pressures on a scale not seen in decades. Central banks around the world are acting to fulfil their price stability mandates by increasing interest rates and by engaging in quantitative tightening (primarily the selling of government bonds to reduce central bank balance sheets), all of which put pressure on borrowing costs at a time when governments are engaging in expansionary fiscal policy to alleviate the impact of inflation. The objective of this policy note is to examine the main consequences of this challenging environment for the fiscal stance of different levels of governments. These include the weakening outlook for government revenues in times of high expenditure pressures from a more rapid energy transition as well as high borrowing costs.
    Keywords: energy crisis, fiscal federalism, state and local governments, subnational fiscal projections, tax policy
    JEL: H12 H68 H77
    Date: 2023–01–05
  58. 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
  59. By: John List; Matthias Rodemeier; Sutanuka Roy; Gregory Sun
    Abstract: While non-price interventions ("nudges") have grown from academic curiosity to a bona fide policy tool, their relative economic efficiency remains under-researched. We develop a unified framework to estimate welfare effects of both nudges and taxes. We showcase our approach by creating a database of more than 300 carefully hand-coded point estimates of non-price and price interventions in the markets for cigarettes, influenza vaccinations, and household energy. While nudges are effective in changing behaviour in all three markets, they are not necessarily the most efficient policy. We find that nudges are more efficient in the market for cigarettes, while taxes are more efficient in the energy market. For influenza vaccinations, nudges may offer similar welfare gains to optimal vaccine subsidies. Importantly, two key factors govern the difference in results across markets: i) the standard deviation of the behavioral bias, and ii) the magnitude of the average externality. Nudges dominate taxes whenever i) exceeds ii).
    Date: 2022
  60. By: Compernolle, Tine (Tilburg University, School of Economics and Management); Kort, Peter M. (Tilburg University, School of Economics and Management); Thijssen, Jacco J. J. (Tilburg University, School of Economics and Management)
    Date: 2022
  61. By: MENYHERT Balint (European Commission - JRC)
    Abstract: This report contains an empirical analysis based on microdata from European household surveys to provide a preliminary assessment of the potential social consequences of increasing energy and consumer prices in the EU. It uses detailed information on recent price developments and the structure of household expenditures to quantify the extent of living cost increases and purchasing power losses in a granular and customised manner across different household types and income groups in the EU. The Report is also the first attempt to calculate the potential effects of rising prices on indicators of material and social deprivation and measures of absolute poverty. It finds that, since early 2021, inflation is predicted to have increased material and social deprivation in the EU by about 2 percentage points on average, while the corresponding increase in absolute poverty may be closer to 5 percentage points. The adverse social effects of inflation are significantly larger in many Central and Eastern European Member States, especially among disadvantaged and/or vulnerable groups. This is likely to further deepen existing gaps in poverty and social exclusion between EU15 and non-EU15 countries, and calls for a strong and coordinated policy response.
    Keywords: poverty and social exclusion, inflation, household finances, material and social deprivation, energy poverty, absolute poverty
    Date: 2022–10
  62. By: Benoit Ferres (CAMEO); Jacques Millery (IFP School); Maxime Schenckery (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School)
    Abstract: Les Certificats d'Economies d'Energie, CEE font régulièrement l'objet de nombreux débats. Nous proposons ici un retour aux fondamentaux de l'Article 7 européen pour comprendre la logique des attentes qui sont à leur origine, et ainsi mieux cerner l'ensemble des dimensions à l'aune desquelles leur impact devrait être évalué.
    Keywords: Certificats d'Economie d'Energie, Article 7, Directive Européenne, Energie, Europe
    Date: 2022–05–01

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