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on Energy Economics |
| By: | Airaudo, Florencia; Pappa, Evi; Seoane, Hernán |
| Abstract: | We propose a new model of a small open economy with efficient energy use to investigate the inflationary dynamics along the green transition. The model incorporates the production of green energy that substitutes exogenous brown energy sources in energy production. Production is characterized by low substitutability between resource and traditional inputs that firms can alter through directed input-saving technical change. We study transitional dynamics induced by exogenous increases of brown energy prices and/or changes in the brown energy taxation; green subsidies and green public investment. Increases in brown energy prices and taxes decrease the usage of brown energy but do not expand significantly the green sector, they simply improve energy efficiency use, surging firm’s marginal costs leading to greenflation and output losses. Public investment and subsidies effectively increase the usage of green energy. Green investment expands output and reduces green energy prices as it increases the productivity of the green sector. Subsidies imply a slower transition with small output costs and elevated green energy prices. We discuss the fiscal costs and welfare implications of the transition using different welfare metrics. |
| Keywords: | Energía, Evaluación de impacto, Políticas públicas, |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dbl:dblwop:1994&r=ene |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03881469&r=ene |
| By: | Michele Fioretti (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Jorge Tamayo (Harvard Business School - Harvard University [Cambridge]) |
| Abstract: | Renewable generation creates a tradeoff between current and future energy production as generators produce energy by releasing previously stored resources. Studying the Colombian market, we find that diversified firms strategically substitute fossil fuels for hydropower before droughts. This substitution mitigates the surge in market prices due to the lower hydropower capacity available during dry periods. Diversification can increase prices, instead, if it results from mergers steepening a firm's residual demand. Thus, integrating production technologies within firms can smooth the clean-energy transition by offsetting higher prices during scarcity periods if the unaffected technologies help store renewables more than exercise market power. |
| Keywords: | Energy transition, Renewables, Hydropower generation, Diversified production technologies, Energy storage, Wholesale electricity markets |
| Date: | 2021–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03389152&r=ene |
| By: | Elvis D. Achuo (University of Dschang, Cameroon); Pilag B.C. Kakeu (University of Bamenda, Cameroon); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | Despite the global resolves to curtail fossil fuel consumption in favour of clean energies, several countries continue to rely on carbon-intensive sources in meeting their energy demands. Financial constraints and limited knowledge with regard to green energy sources constitute major setbacks to the energy transition process. This study therefore examines the effects of financial development and human capital on energy consumption. The empirical analysis is based on the System Generalised Method of Moments (SGMM) for a panel of 134 countries from 1996-2019. The SGMM estimates conducted on the basis of three measures of energy consumption, notably fossil fuel, renewable energy as well as total energy consumption, provide divergent results. While financial development significantly reduces fossil fuel consumption, its effect is positive though non-significant with regard to renewable energy consumption. Conversely, financial development has a positive and significant effect on total energy consumption. Moreover, the results reveal that human capital development has an enhancing though non-significant effect on the energy transition process. Additionally, the results reveal that resource rents have an enhancing effect on the energy transition process. However, when natural resources rents are disaggregated into various components (oil, coal, mineral, natural gas, and forest rents), the effects on energy transition are divergent. Although our findings are consistent when the global panel is split into developed and developing economies, the results are divergent across geographical regions. Contingent on these findings, actionable policy implications are discussed. |
| Keywords: | Energy transition, Financial development, Fossil fuel, Human capital, Energy consumption, Eco-innovation |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/005&r=ene |
| By: | Woźniak, Marian; Kud, Krzysztof |
| Abstract: | The aim of the research is to present electricity consumption in rural areas and the preferred directions of development of the energy sector in Poland in the opinion of the rural population of the Podkarpackie and Lubelskie Voivodships. Due to the extensive scope of the analysis, the part showing the actual energy consumption was based on the data from statistical offices, whereas the part concerning the prospects was based on the survey conducted in 2021 among 516 inhabitants ofrural areas of the Podkarpackie and Lubelskie Voivodships, which are typically agricultural regions. The study was partial and was carried out using the diagnostic survey method and the CAWI technique. The study was not probabilistic. The study shows that the surveyed inhabitants of rural areas positively assessed the consequences of the European Union climate policy for the natural environment and expect greater state support to increase the share of renewable energy sources in Poland’s energy mix and to apply the requirements for the energy efficiency of devices. The respondents were convinced of the possibility of covering and replacing energy from conventional sources. They positively assessed energy from renewable sources, perceiving renewable energy, mainly photovoltaics, as the main source of energy in Poland’s energy mix. |
| Keywords: | Consumer/Household Economics, Environmental Economics and Policy, Resource /Energy Economics and Policy |
| Date: | 2022–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:329866&r=ene |
| By: | Matteo Romagnoli (Department of Economics, Management and Statistics, Università degli Studi di Milano-Bicocca) |
| Abstract: | The paper investigates the effect of electricity liberalisation on the variety of clean energy patent’ search space to asses whether a more competitive electricity market can foster the development of radical clean-energy technologies. This idea is tested using a cross-section of patents filed in the period 1990-2017, a set of patent-level indicators and an instrumental variable approach. Results show that electricity liberalisation pushes clean-energy patents to cite knowledge from technological fields other than their own. However, the reform does not significantly affect the overall breath of the knowledge base of these patents. Additional insights are drawn by looking at the correlation between electricity liberalisation and an indicator of novelty in patents’ search space. The results are consistent with the claim that electricity liberalisation has a positive effect on the development of radical clean-energy technologies. At the same time, by describing how the reform changes clean-energy patents’ search space, they define this effect more precisely. |
| Keywords: | Clean-energy Technologies, Electricity Liberalisation, Climate Change, Patent Data |
| JEL: | L94 O31 Q42 Q55 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2022.44&r=ene |
| By: | Chiara Casoli (Fondazione Eni Enrico Mattei); Matteo Manera (Fondazione Eni Enrico Mattei and Department of Economics, Management and Statistics – DEMS, University of Milano-Bicocca); Daniele Valenti (Fondazione Eni Enrico Mattei and Department of Environmental Science and Policy – DESP, University of Milano) |
| Abstract: | We develop a Bayesian Structural VAR (SVAR) model to study the relationship between different kinds of energy shocks and inflation dynamics in Europe. Specifically, we include in our specification two separate energy markets (oil and natural gas) and two target macroeconomic variables, measuring inflation expectations and the realized headline inflation. Our results demonstrate that, during the last year, inflation in the Euro area is more affected from energy price shocks, particularly those coming from the natural gas sector. The high peaks of the Eurozone inflation are mainly associated with gas consumption demand shocks and, to a lesser extent, to oil and gas supply shocks. |
| Keywords: | Energy shocks, Oil and gas markets, Inflation, Bayesian Structural VARs |
| JEL: | C11 E31 Q41 Q43 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2022.45&r=ene |
| By: | Emanuele Campiglio; Simon Dietz; Frank Venmans |
| 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 O44 Q54 Q55 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10139&r=ene |
| By: | Scott Alan Carson; Scott A. Carson |
| Abstract: | Oil and gas company returns are compared between upstream, midstream, and down-stream sectors from 2000 through 2020. Crude oil, natural gas, and distillate returns reflect project risk, infrastructure, and conditions within the industry. Equity, commodity, and distillate markets positively price returns, and equity market risk and returns are higher than for commodity markets. Refining & marketing and equipment & service firms have the greatest equity market risk, while equipment & service and exploration & production firms have the greatest commodity market risk. Refining & marketing firm returns did not systematically vary with commodity market risk. Producer returns are positively related to crude distillates, and across the oil and gas industry, diesel has the greatest risk and distillate return. Equity, commodity, and distillate returns are collectively significant in individual risk and returns. |
| Keywords: | oil and gas asset pricing models, book to market, size, oil and gas sector |
| JEL: | G12 L71 L72 Q40 Q41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10125&r=ene |
| By: | Giacomo Novelli (Prometeia) |
| Abstract: | We investigate whether the degree of energy dependency of countries influences their macroeconomic performance in terms of long-run growth. Specifically, we study whether the impact of energy price changes on economic growth differs depending on a country’s degree of energy dependency. There are two novel aspects in this paper. First, all energy commodities are considered, not only oil, and second, our work goes beyond the standard distinction between energy importing and exporting countries. We claim that energy importing and exporting countries are too heterogeneous in terms of net energy imports, energy consumption, and level of development to be clustered and analysed together. Relying on a sample clusterization in groups of countries with a similar degree of energy dependency and using a cross-sectionally augmented panel autoregressive distributed lag (CS-ARDL) approach, we show that countries with a high degree of energy dependency are associated with a negative and significant long-run energy price elasticity of GDP, while countries with a low degree experience the opposite effect, and more balanced countries are less or not significantly affected. Moreover, we contribute to the resource curse paradox showing that the energy price volatility negatively affects the long-run economic growth of countries with a low degree of energy dependency, but it does not hamper the long-run growth of other countries. We argue that the impact of energy price changes differs across countries with a different degree of energy dependency and that a balanced degree of energy dependency is preferable. Therefore, we suggest major energy importers should reduce their degree of energy dependency, while major energy exporters may differentiate their energy production, avoiding to rely only on fossil sources. Renewable sources may be a key driver to improve the management of the degree of energy dependency. |
| Keywords: | Energy Price, Volatility, Energy Security, Economic Growth, Heterogeneous Panel, Institutions, Resource Curse |
| JEL: | C23 C33 O43 Q33 Q43 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2022.42&r=ene |
| By: | Mark R. Jacobsen; James M. Sallee; Joseph S. Shapiro; Arthur A. van Benthem |
| Abstract: | What is a feasible and efficient policy to regulate air pollution from vehicles? A Pigouvian tax is technologically infeasible. Most countries instead rely on exhaust standards that limit air pollution emissions per mile for new vehicles. We assess the effectiveness and efficiency of these standards, which are the centerpiece of US Clean Air Act regulation of transportation, and counterfactual policies. We show that the air pollution emissions per mile of new US vehicles has fallen spectacularly, by over 99 percent, since standards began in 1967. Several research designs with a half century of data suggest that exhaust standards have caused most of this decline. Yet exhaust standards are not cost-effective in part because they fail to encourage scrap of older vehicles, which account for the majority of emissions. To study counterfactual policies, we develop an analytical and a quantitative model of the vehicle fleet. Analysis of these models suggests that tighter exhaust standards increase social welfare and that increasing registration fees on dirty vehicles yields even larger gains by accelerating scrap, though both reforms have complex effects on inequality. |
| JEL: | H21 H23 H70 Q50 R40 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10132&r=ene |
| By: | Alix Chaplain (CERI - Centre de recherches internationales (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Éric Verdeil (CERI - Centre de recherches internationales (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Policymakers see decentralized electricity supply as a way to both decarbonize energy systems and to fill the gap of electricity access in many countries where strong growth leave the grid lagging behind. This article sheds some light on the case of countries such as Lebanon, where diesel-fueled decentralized electricity systems have existed for years and increasingly coexist with, rather than being replaced by, solar powered systems. It is based on a synthesis of public quantitative data and qualitative information gathered through surveys. The article argues that understanding such dynamics involves an analysis, not only of the technological and socioeconomic determinants of the adoption of decentralized energy technologies but also of the political struggles between the various actors, with a particular focus on corporate actors, and wealthy users. In addition, the article shows how different political temporalities play in reproducing or opening the assemblage of technologies and interests that shape the hybridized energy landscape. The article also shows that hybridization has repercussions on the energy configuration as a whole, both in the evolving market share of each technology but also by deeply fragmenting the access to electricity along social and territorial lines and by pushing essential private actors to disconnect from the grid. As a conclusion, the promises of sustainable transitions need to be critically examined in light of these trends |
| Keywords: | Lebanon,electricity,solar power,distributed energy,diesel generator |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03814475&r=ene |
| By: | Silvana Tenreyro (Bank of England; London School of Economics (LSE); Centre for Macroeconomics (CFM); Centre for Economic Policy Research (CEPR)); Tiloka de Silva (University of Moratuwa) |
| Abstract: | We study countries’ compliance with the targets pledged in international climate-change agreements and the impact of those agreements and specific climate laws and policies on greenhouse-gas emissions and economic outcomes. To do so, we compile and codify data on international agreements and measures enacted at the national and sub-national levels. We find that compliance with targets has been mixed. Still, countries that signed the Kyoto Protocol or the Copenhagen Accord experienced significant reductions in emissions when compared to non-signatories. Having quantifiable targets led to further reductions. Effects from the Paris Agreement are not yet evident in the data. Carbon taxes and the introduction of emission-trading schemes led to material reductions in emissions. Other climate laws or policies do not appear to have had, individually, a material effect on emissions. The impact on GDP growth or inflation from most measures was largely insignificant. Overall, much more ambitious targets would be needed to offset the impact of economic and population growth on emissions and contain the expansion of the stock of gases. |
| Keywords: | emissions, climate change, climate agreements, carbon taxes, emission-trading schemes, climate-change mitigation |
| JEL: | Q54 O44 |
| Date: | 2021–09 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2118&r=ene |
| By: | Chmielewski, Łukasz |
| Abstract: | The aim of the article is to present the supply and demand situation on the market of rapeseed oil and maize used for fuel purposes in Poland, as well as analyze the relationship between their prices and production, as well as the consumption of gasoline and diesel fuel. The analysis covered the 2015–2020 period and was based on data from Statistics Poland, the National Support Center for Agriculture, and the Polish Oil Industry and Trade Organization. Statistical analysis showed that between 2015 and 2020 the dynamics of the usage of raw materials to produce biofuels exceeded the growth rate of their production and harvest. The assessment of the relationship between production and consumption of fuels in Poland showed that the demand from the fuel sector had a dominant influence on the prices of rapeseed oil and maize during the period under consideration, and fuel production had a less significant share in shaping wholesale prices of rapeseed oil and purchase prices of maize. Biofuels are an important and topical issue both in the context of the new energy policy of the European Union (EU) and Poland until 2040 and Russia’s invasion of Ukraine, with one of the consequences being the energy crisis and the announcement of the EU becoming independent from Russian energy. In such a situation, biofuels and raw materials for their production may turn out to be an important element of improving energy security. |
| Keywords: | Crop Production/Industries, Research Methods/ Statistical Methods |
| Date: | 2022–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:329860&r=ene |
| 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); Kovsh, Andrey (Saint Petersburg State University) |
| Abstract: | This study attempts to identify 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. To this end, this study is consisted of the following four parts. Part II examines the geopolitics of energy coming into the 21st century and Russia’s new energy strategy. Part III conducts an in-depth analysis of the energy cooperation strategies of China and Japan, major Northeast Asian countries, with Russia, and Part IV comprehensively evaluates Korea’s energy strategy and Korea-Russia energy cooperation. In conclusion, Part V presents new plans for Korea-Russia energy cooperation. As a side note, after carrying out this study, the policy environment for energy cooperation with Russia has significantly changed. Russia’s war against Ukraine is expected to change the landscape of global energy and its geopolitics in profound ways. In the midst of these significant changes, it is hoped that this study will serve as a meaningful reference for analyzing and forecasting the global energy dynamics surrounding Russia. |
| Keywords: | Russias Energy Strategy Korea-Russia Cooperation; Natural Gas and Hydrogen Sectors |
| Date: | 2022–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2022_026&r=ene |
| By: | Haohua Li (School of Management and Engineering, Nanjing University, No. 5 Pingcang Lane, Gulou District of Nanjing, Jiangsu Province, China); Elie Bouri (School of Business, Lebanese American University, Byblos, Lebanon); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Libing Fang (School of Management and Engineering, Nanjing University, No. 5 Pingcang Lane, Gulou District of Nanjing, Jiangsu Province, China) |
| Abstract: | We examine the effects of three monthly climate risk factors, climate policy uncertainty (CPU), climate change news (CCN), and negative climate change news (NCCN) on the long-run volatilities and correlation of daily green and brown energy stock returns, and perform a hedging analysis. Given that our dataset combines daily and monthly data, we rely on mixed data sampling models such as GARCH-MIDAS and DCC-MIDAS in standard and asymmetric forms with a bivariate skew-t distribution, which also allows us to deal with volatility clustering, asymmetric effects, and negative skewness in innovation which characterize our dataset. Firstly, the results of the GARCH-MIDAS models show evidence that climate risk contains information useful to improve the prediction of return volatility of brown energy stocks. Secondly, the results of the DCCMIDAS model indicate that climate risk reduces the green-brown returns correlation, suggesting a negative effect and hedging opportunities. Thirdly, the results of the hedging analysis show that incorporating a climate risk factor, especially NCCN, into the long-run component of dynamic correlation significantly improves the hedging performance between green and brown energy stock indices, and this are robust to an out-of-sample analysis under various refitting window sizes. These results matter to portfolio and risk managers for energy transition and portfolio decarbonization. |
| Keywords: | Conditional volatility, dynamic correlation, GARCH-MIDAS, DCCMIDAS, climate change news (CCN), Climate policy uncertainty (CPU), hedging |
| JEL: | C32 G00 G11 Q54 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202301&r=ene |
| By: | Schlecht, Ingmar; Hirth, Lion; Maurer, Christoph |
| Abstract: | Contracts for differences are widely discussed as a cornerstone of Europe’s future electricity market design. In this paper, we make three contributions to the debate. First, we summarize the dispatch and investment distortions that traditional CfDs cause. Second, we propose an alternative CfD specification that we dub "financial wind CfDs". It is a hybrid between CfDs and forward contracts that aims at being superior to conventional CfDs both in terms of risk mitigation and incentives. Third, we point out that "the other side of the contract", the government’s financial position resulting from any long-term contract with generators, must be carefully handled to avoid muting consumers' flexibility incentives or depleting forward markets. |
| Keywords: | electricity market, market design, contracts for differences, energy economics |
| JEL: | Q4 Q42 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:267597&r=ene |
| By: | Max Franks; Matthias Kalkuhl; Kai Lessmann |
| Abstract: | Carbon dioxide removal (CDR) moves atmospheric carbon to geological or land-based sinks. In a first-best setting, the optimal use of CDR is achieved by a removal subsidy that equals the optimal carbon tax and marginal damages. We derive second-best policy rules for CDR subsidies and carbon taxes when no global carbon price exists but a national government implements a unilateral climate policy. We find that the optimal carbon tax differs from an optimal CDR subsidy because of carbon leakage and a balance of resource trade effect. First, the optimal removal subsidy tends to be larger than the carbon tax because of lower supply-side leakage on fossil resource markets. Second, net carbon exporters exacerbate this wedge to increase producer surplus of their carbon resource producers, implying even larger removal subsidies. Third, net carbon importers may set their removal subsidy even below their carbon tax when marginal environmental damages are small, to appropriate producer surplus from carbon exporters. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.09299&r=ene |
| By: | Taisuke Imai; Davide D. Pace; Peter Schwardmann; Joël van der Weele; Davide Domenico Pace |
| Abstract: | Policy makers put great emphasis on the role of information about carbon emissions in achieving sustainable decisions by consumers. We conduct two studies to understand the optimal targeting of such information and its effects. First, we conduct an incentivized and representative survey among US consumers (N = 1, 022) to investigate awareness of climate impact and willingness to mitigate it. We find a large variation in the perceptions of the carbon emissions of different consumption behaviors, with an overall tendency to underestimate these emissions. We also find a positive but highly concave willingness to mitigate climate impact. We combine elicited misperceptions and willingness to mitigate in a structural model that delivers sharp predictions about where to best target information campaigns. In an experiment with actual consumption decisions (N = 2, 081), we then test for the effect of CO2 information on the demand for beef, a product predicted to be a productive target for information. Correcting misperceptions has no effect on the demand for beef, both in absolute terms and compared to a predictably less productive target of information, i.e. the demand for poultry. Our dataset allows us to hone in on the underlying reason for this null effect. |
| Keywords: | climate change, carbon emissions, information provision, consumer behavior |
| JEL: | C81 C93 D84 Q54 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10138&r=ene |
| By: | Matthias Kalkuhl; Max Franks; Friedemann Gruner; Kai Lessmann; Ottmar Edenhofer |
| Abstract: | Carbon dioxide removal from the atmosphere is becoming an important option to achieve net zero climate targets. This paper develops a welfare and public economics perspective on optimal policies for carbon removal and storage in non-permanent sinks like forests, soil, oceans, wood products or chemical products. We derive a new metric for the valuation of non-permanent carbon storage, the social cost of carbon removal (SCC-R), which embeds also the conventional social cost of carbon emissions. We show that the contribution of CDR is to create new carbon sinks that should be used to reduce transition costs, even if the stored carbon is released to the atmosphere eventually. Importantly, CDR does not raise the ambition of optimal temperature levels unless initial atmospheric carbon stocks are excessively high. For high initial atmospheric carbon stocks, CDR allows to reduce the optimal temperature below initial levels. Finally, we characterize three different policy regimes that ensure an optimal deployment of carbon removal: downstream carbon pricing, upstream carbon pricing, and carbon storage pricing. The policy regimes differ in their informational and institutional requirements regarding monitoring, liability and financing. |
| Keywords: | carbon dioxide removal, carbon capture, social cost of carbon, climate policy, impermanence |
| JEL: | D61 H23 Q54 Q58 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10169&r=ene |
| By: | Laureti, Lucio; Costantiello, Alberto; Leogrande, Angelo |
| Abstract: | In this article we investigate the impact of “Renewable Electricity Output” on green economy in the context of circular economy for 193 countries in the period 2011-2020. We use data from World Bank ESG framework. We perform Panel Data with Fixed Effects, Panel Data with Random Effects, WLS, and Pooled OLS. Our results show that Renewable Electricity Output is positively associated, among others, to “Adjusted Savings-Net Forest Depletion” and “Renewable Energy Consumption” and negatively associated, among others, to “CO2 Emission” and “Cooling Degree Days”. Furthermore, we perform a cluster analysis implementing the k-Means algorithm optimized with the Elbow Method and we find the presence of 4 clusters. Finally, we confront seven different machine learning algorithms to predict the future level of “Renewable Electricity Output”. Our results show that Linear Regression is the best algorithm and that the future value of renewable electricity output is predicted to growth on average at a rate of 0.83% for the selected countries. |
| Keywords: | Environmental Economics, General, Valuation of Environmental Effects, Pollution Control Adoption and Costs, Recycling. |
| JEL: | Q50 Q51 Q52 Q53 Q54 Q55 |
| Date: | 2022–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115627&r=ene |
| By: | Boeing, Geoff (Northeastern University); Lu, Yougeng; Pilgram, Clemens |
| Abstract: | Vehicular air pollution has created an ongoing air quality and public health crisis. Despite growing knowledge of racial injustice in exposure levels, less is known about the relationship between the production of and exposure to such pollution. This study assesses pollution burden by testing whether local populations' vehicular air pollution exposure is proportional to how much they drive. Through a Los Angeles, California case study we examine how this relates to race, ethnicity, and socioeconomic status---and how these relationships vary across the region. We find that, all else equal, tracts whose residents drive less are exposed to more air pollution, as are tracts with a less-White population. Commuters from majority-White tracts disproportionately drive through non-White tracts, compared to the inverse. Decades of racially-motivated freeway infrastructure planning and residential segregation shape today's disparities in who produces vehicular air pollution and who is exposed to it, but opportunities exist for urban planning and transport policy to mitigate this injustice. |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:wd92j&r=ene |
| By: | Oeri, Fintan (University of Basel) |
| Abstract: | This document introduces synthesised data on solar PV investments in Switzerland and an accompanying R shiny app . The data were collected as part of two WWZ Forum research projects, FV-71 and FV-79, on prices associated with green buildings. In addition to unified data on solar PV subsidies by municipality, the datasets include processed data on PV installations, PV installation potential, electricity prices, feed-in-tariffs, and population size of each geographic unit. Furthermore, linking relevant variables by geographical unit poses a substantial challenge to any analysis on the PV distribution in Switzerland. The issue primarily stems from distinct, and sometimes arbitrary, observational units (political municipalities, addresses, post codes, operators with unclear areas of activity) used in original data sources. The present document, together with an accompanying R script, provides a pragmatic approach to overcome this issue. |
| Keywords: | solar; pv; subsidies; green investments |
| JEL: | H23 Q48 Q54 R10 |
| Date: | 2022–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:bsl:wpaper:2022/10&r=ene |
| By: | Gian Paolo Clemente; Alessandra Cornaro; Rosanna Grassi; Giorgio Rizzini |
| Abstract: | The energy consumption, the transfer of resources through the international trade, the transition towards renewable energies and the environmental sustainability appear as key drivers in order to evaluate the resilience of the energy systems. Concerning the consumptions, in the literature a great attention has been paid to direct energy, but the production of goods and services also involves indirect energy. Hence, in this work we consider different types of embodied energy sources and the time evolution of the sectors' and countries' interactions. Flows are indeed used to construct a directed and weighted temporal multilayer network based respectively on renewable and non-renewable sources, where sectors are nodes and layers are countries. We provide a methodological approach for analysing the network reliability and resilience and for identifying critical sectors and economies in the system by applying the Multi-Dimensional HITS algorithm. Then, we evaluate central arcs in the network at each time period by proposing a novel topological indicator based on the maximum flow problem. In this way, we provide a full view of economies, sectors and connections that play a relevant role over time in the network and whose removal could heavily affect the stability of the system. We provide a numerical analysis based on the embodied energy flows among countries and sectors in the period from 1990 to 2016. Results prove that the methods are effective in catching the different patterns between renewable and non-renewable energy sources. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.11585&r=ene |
| By: | Nils Gornemann (Board of Governors of the Federal Reserve System); Sebastian Hildebrand (University of Bonn); Keith Kuester (University of Bonn) |
| Abstract: | A common assumption in macroeconomics is that energy prices are determined in a world-wide, rather frictionless market. This no longer seems an adequate description for the situation that much of Europe currently faces. Rather, one reading is that shortages exist in the quantity of energy available. Such limits to the supply of energy mean that the local price of energy is affected by domestic economic activity. In a simple open-economy New Keynesian setting, the paper shows conditions under which energy shortages can raise the risk of self-fulfilling fluctuations. A firmer focus of the central bank on input prices (or on headline consumer prices) removes such risks. |
| Keywords: | Energy crisis, macroeconomic instability, sunspots, monetary policy, heterogeneous households |
| JEL: | E31 E32 E52 F41 Q43 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:215&r=ene |
| By: | Michele Fioretti (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Alessandro Iaria (University of Bristol [Bristol]); Aljoscha Janssen (SIS - Singapore Management University); Robert K Perrons (QUT - Queensland University of Technology [Brisbane]); Clément Mazet-Sonilhac (Centre de recherche de la Banque de France - Banque de France, ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | We investigate the effect of technology adoption on competition by leveraging a unique dataset on production, costs, and asset characteristics for North Sea upstream oil & gas companies. Relying on heterogeneity in the geological suitability of fields and a landmark decision of the Norwegian Supreme Court that increased the returns of capital investment in Norway relative to the UK, we show that technology adoption increases market concentration. Firms with prior technology-specific know-how specialize more in fields suitable for the same technology but also invest more in high-risk-high-return fields (e.g., ultra-deep recovery), diversifying their technology portfolio and ultimately gaining larger shares of the North Sea market. Our analyses illustrate how technology adoption can lead to market concentration both directly through specialization and indirectly via experimentation. |
| Keywords: | Market structure, Competition, Specialization, Experimentation, Upstream oil and gas markets, North Sea, Innovation, Adoption |
| Date: | 2022–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03791971&r=ene |
| By: | Rüdiger Bachmann (UND - University of Notre Dame [Indiana]); David Baqaee (UCLA - University of California [Los Angeles] - UC - University of California); Christian Bayer (University of Bonn); Moritz Kuhn (University of Bonn, ECONtribute - ECONtribute: Markets & public policy); Andreas Löschel (RUB - Ruhr University Bochum); Ben Mcwilliams (Bruegel); Benjamin Moll (LSE - London School of Economics and Political Science); Andreas Peichl (LMU - Ludwig-Maximilians University [Munich]); Karen Pittel (LMU - Ludwig-Maximilians University [Munich]); Moritz Schularick (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, University of Bonn, ECONtribute - ECONtribute: Markets & public policy); Georg Zachmann (Bruegel) |
| Abstract: | An end to gas supplies from Russia has recently become much more likely. Russian supply volumes have already been substantially reduced, and uncertainty about future supplies and the winter supply situation is high. In this study, we ask what the economic consequences would be of a complete halt to Russian gas imports at present (August 2022). Almost five months have passed since our first study, "What if" (Bachmann et al., 2022), on the economic effects of a March 2022 Russian energy import freeze. The debate sparked by the study has sharpened the focus on the issues and assumptions that are critical to estimating the economic costs of a Russian energy import freeze. In this study, we update the results based on the situation in August 2022.1 (i) We estimate the necessary demand reduction that would result if Russian gas imports were halted from August 2022 and discuss economic policy strategies to achieve this adjustment. (ii) We update our estimated expected economic costs and discuss practical examples of substitution options in the industrial sector. (iii) We evaluate the federal government's economic policy, in particular its decision to increase storage levels with continued gas imports from Russia since March 2022, but to largely forego measures to reduce gas demand in power generation, industry, and residential and commercial sectors. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03880930&r=ene |
| By: | Ahmad, Husnain F. (Sewanee: The University of the South); Gibson, Matthew (Williams College); Nadeem, Fatiq (California State University); Nasim, Sanval (Colby College); Rezaee, Arman (California State University) |
| Abstract: | Scarce information and human capital may make it difficult for residents of developing countries to produce accurate forecasts, limiting responses to uncertain future events like air pollution. We study two randomized interventions in Lahore, Pakistan: 1) provision of air pollution forecasts; 2) general training in forecasting. Both reduced subjects' own air pollution forecast errors; the training effect suggests that modest educational interventions can durably improve forecasting skills. Forecast receipt increased demand for protective masks and increased the responsiveness of outdoor time to pollution. Forecast recipients were willing to pay 60 percent of the cost of mobile internet for continued access. |
| Keywords: | pollution avoidance, training, forecasts, environmental information |
| JEL: | Q56 Q53 D84 D90 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15831&r=ene |
| By: | Prandecki, Konrad |
| Abstract: | In 2022, thirty years have passed since the adoption of the United Nations Framework Convention on Climate Change. This period is long enough to evaluate the effectiveness of this policy. The aim of this paper is to determine the achievements of climate policy so far and the most likely directions for further actions to reduce greenhouse gas emissions. Particular attention was paid to agricultural emissions, which results from the significant share of agriculture in global emissions and the specific structure of emissions, i.e., the significant role of the sector in methane and nitrous oxide emissions. The paper uses statistical analysis based on the World Bank data. It was supplemented by a critical analysis of the literature on climate policy. The presented results show that the current policy does not bring the expected results. There are, however, some examples (the European Union), where the reduction of greenhouse gas emissions is visible. As a result, the share of Community emissions in global emissions tends to decrease. This applies to both total and agricultural emissions, i.e., methane and nitrous oxide. Based on the presented data and global trends, it seems most likely that the current direction of changes will be continued, i.e., poor care for climate on a global scale and increasing emission restrictions in selected regions of the world. Nevertheless, this solution will be ineffective, since climate change is a global problem and must be solved globally. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2022–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iafepa:329858&r=ene |
| By: | Novy, Andreas; Barlow, Nathaniel |
| Abstract: | This article scrutinizes the potential of transformative climate actions (TCAs) to contribute to social-ecological transformations. It considers the limitations of past climate actions and distinguishes transformative climate actions from the broad array of climate actions that have so far been insufficient to address the multiple crises. We define TCAs as having three key elements: desirable, effective, and feasible. This builds on the IPCC AR6 definition of ‘solutions’ and our past work on transformative innovation. Furthermore, we describe six characteristics that transformative climate actions are likely to have, they include: broadening climate targets to include social-ecological goals, shaping framework conditions, linking pragmatic and radical actions, ensuring basic provisioning while limiting over- consumption, prioritizing avoiding harm, be it emissions or excessive resource use, and lastly acting on multiple levels. We elaborate on each of these characteristics with an example and support from climate literature. |
| Keywords: | transformation; post-growth; degrowth; climate change |
| Date: | 2022–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus009:34006514&r=ene |
| By: | Dorothée Charlier (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Bérangère Legendre (IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Olivia Ricci (CEMOI - Centre d'Économie et de Management de l'Océan Indien - UR - Université de La Réunion) |
| Abstract: | Fuel poverty in tropical territories cannot be defined and measured using traditional indicators based on heating issues (expenditure, restriction or the sensation of cold inside houses). We propose a new framework for the identification of fuel-poor households by referring to Amartya Sen's Capability Approach. To accurately assess fuel poverty in tropical areas using observable objective characteristics of decent, safe and healthy dwellings, we use the latent class model (LCM) methodology. This approach allows us to categorize households as fuel poor or non-fuel poor. It is also possible to extend further by considering the multi-dimensional phenomenon of fuel poverty. Using three classes, we can underline a scale of fuel poverty severity with a new class of vulnerable households. Restricting fuel poverty in tropical areas to a binary phenomenon leads to the neglect of the complexity of energy deprivation. |
| Keywords: | fuel poverty,tropical islands,latent class model,capabilities approach |
| Date: | 2021–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03877034&r=ene |
| By: | Ozili, Peterson K |
| Abstract: | This paper investigates the association between financial inclusion and sustainable development in a global context. The findings show that high levels of financial inclusion (in terms of higher commercial bank branches per 100, 000 adults) is significantly associated with high levels of sustainable development (in terms of higher electricity production from renewable sources, higher industry productivity, higher adult literacy rate and higher renewable electricity output). Also, higher financial inclusion is significantly associated with low combustible renewables and waste. There is uni-directional granger causality between global interest in sustainable development information and global interest in financial inclusion information particularly in the period after the global financial crisis (GFC) but before the COVID-19 pandemic. The results support global calls for greater financial inclusion and the attainment of the sustainable development goals for the good of all people, the environment and for the planet. |
| Keywords: | financial inclusion, sustainable development goals, access to finance, energy, renewables, adult literacy, industry, electricity, access to finance, unbanked adults, environment, research and development. |
| JEL: | G21 I31 Q56 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:115772&r=ene |
| By: | Rebecca Fraenkel; Joshua S. Graff Zivin; Sam D. Krumholz |
| Abstract: | During the past fifteen years, more than 30% of US coal plants have had at least one coal-fired generator close. We utilize this natural experiment to estimate the effect of coal plant exposure on mortality and house values. Using a difference-in-differences design, we find that, despite the fact that most of this coal generation is replaced with natural gas generation, individuals in counties whose population centroid is within 30 miles of a plant that closes at least one coal-fired unit experience large health effects following shutdown. While these health improvements appear to capitalize into housing values, they only do so for homes within 15 miles of the plant and only when the retirement is complete rather than partial. Taken together, these results underscore the importance of subjective perceptions in shaping market-mediated price effects with far-reaching implications for the literature. |
| JEL: | I18 Q4 Q50 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:30801&r=ene |
| By: | Aurélien Boronat; Nadine Levratto (EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2022–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-03882541&r=ene |
| By: | Nicolas Berghmans (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Lola Vallejo (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Benoît Leguet (I4CE-Institute for Climate Economics); Erwann Kerrand (I4CE-Institute for Climate Economics); Andreas Eisl (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique, MaxPo - Max Planck Sciences Po Center on Coping with Instability in Market Societies - Max Planck Institute for the Study of Societies - Max-Planck-Gesellschaft - Sciences Po - Sciences Po, Institut Jacques Delors); Phuc-Vinh Nguyen (Institut Jacques Delors); Thomas Pellerin-Carlin (Institut Jacques Delors); Xavier Timbeau (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po) |
| Abstract: | Il reste moins de 30 ans pour atteindre la neutralité carbone. Cette transformation des économies française et européenne, à peine entamée, est historique. Essentielle pour éviter le chaos climatique, elle doit aussi intégrer d'autres enjeux environnementaux, dont la biodiversité et la pollution de l'air. Elle constitue aussi une opportunité pour moderniser nos industries, créer des emplois de qualité, lutter contre la pauvreté, renforcer la prospérité économique et affirmer notre indépendance politique et énergétique. Si de nombreux pays ont annoncé des objectifs de neutralité carbone en amont de la dernière Conférence internationale sur le climat (COP 26), il manque encore des actes concrets, en France comme ailleurs. Beaucoup de chemins sont possibles pour atteindre la neutralité, il faut les préciser, les clarifier et les proposer au débat public. On ne peut traiter les différentes facettes de la transition écologique séparément les unes des autres. Investissements publics comme privés, changements de modes de vie, reconfiguration des espaces urbains, nouveau pacte social, formation des travailleurs, innovations, modification des incitations économiques et production d'énergies nouvelles devront ainsi être appréhendés conjointement pour apporter une réponse systémique et relever le défi climatique. Certains chantiers sont déjà ouverts : 2 % du PIB Français sont déjà consacrés à des investissements favorables au climat, l'Union européenne déploie un Pacte vert, les rénovations des bâtiments, productions d'énergies renouvelables et de véhicules électriques se développent. La Convention citoyenne pour le climat a démontré que ce mode de démocratie participative permet d'aboutir à des propositions concrètes, partiellement reprises dans la loi Climat et Résilience promulguée en 2021. Le plan France Relance permet d'apporter 30 milliards d'euros pour la transition écologique, mais sur une période limitée à deux ans. France 2030 donne de la prévisibilité aux financements de certaines filières innovantes. Dans ce Policy Brief, nous recensons les éléments structurants pour lesquels nous attendons des propositions concrètes de chaque candidat et de chaque famille politique. Sur le climat, tout projet politique peut être proposé aux Français, mais chaque projet politique doit être concrétisé dans une programmation pluriannuelle des investissements publics. Car si l'investissement ne fait pas tout, il est le point nodal d'expression des choix politiques et permet de mieux juger, au-delà des discours, du contenu réel des propositions. |
| Date: | 2021–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03483383&r=ene |
| By: | Su, Qinghe (Oklahoma State University); Azam, Mehtabul (Oklahoma State University) |
| Abstract: | Using the nationally representative Indian Time Use Survey, we study whether the use of Liquefied Petroleum Gas (LPG) as cooking fuel affects the time spent in cooking and employment activities for Indian rural women. We instrument use of LPG by a leave-one-out spatial instrument constructed by taking the average level of LPG use in the village where the average is calculated leaving the concerned household. We find no impact of LPG on the probability of women participating in cooking activities. However, use of LPG reduces (increases) time spent in cooking (employment) activities. We also find evidence of rebound effect where use of LPG leads to marginally more cooking events in a day. We find that LPG impact on time spent in cooking and employment is mostly driven by married women. |
| Keywords: | access to LPG, time use, instrument variable, women, India |
| JEL: | J22 O12 O13 O33 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15842&r=ene |
| By: | Marion Gaspard (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS Lyon - École normale supérieure - Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet [Saint-Étienne] - CNRS - Centre National de la Recherche Scientifique, UL2 - Université Lumière - Lyon 2); Antoine Missemer (CNRS - Centre National de la Recherche Scientifique, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | La règle de Hotelling, décrivant la trajectoire optimale de long terme du prix d'un actif épuisable, est utilisée de longue date en économie des ressources naturelles. Elle est aujourd'hui également centrale en économie du climat pour l'estimation de ce que serait un prix optimal du carbone. Cette règle, énoncée par Harold Hotelling en 1931, est jugée utile pour dépassionner les débats et fournir une base objective aux arbitrages inter-temporels. Sur la base de matériaux d'archives, cet article propose de revenir aux sources, à savoir l'élaboration de la règle et la conception qu'en avait Hotelling afin de questionner son statut et ses usages aujourd'hui. Nous concluons en particulier que Hotelling ne considérait pas son outil comme neutre face aux enjeux de justice sociale, intra et intergénérationnelle. Délibération collective et action publique étaient au cœur de ses préoccupations, ce qui nous invite à appréhender sous un nouveau jour la fixation des prix du carbone au XXIe siècle. |
| Keywords: | règle de Hotelling,prix du carbone,marchés énergétiques,ressources épuisables,histoire de la pensée économique |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03629364&r=ene |
| By: | Christine Arriola; Charles Cadestin; Przemyslaw Kowalski; Joaquim José Martins Guilhoto; Sébastien Miroudot; Frank van Tongeren |
| Abstract: | Amidst the recovery from the impact of the COVID-19 pandemic, Russia’s war of aggression against Ukraine has resulted in new challenges to the global economy and to international trade. This report relies on detailed trade data to assess the impact of these two overlapping shocks on international trade and supply chains. In February 2022, global trade was approaching pre-Covid levels in absolute terms, but with a different product and geographical composition resulting in a continued sense of tension in the trading system. Russia’s war of aggression against Ukraine has added a new dimension of challenges as it has led to deliberate radical interruptions of trade linkages between Russia, Ukraine and many industrialised economies, with significant repercussions on prices of key commodities in the energy and agricultural sectors. |
| Keywords: | AMNE, General Equilibrium Model, ICIO analysis, Oil |
| JEL: | C67 C68 F14 F17 F5 Q48 |
| Date: | 2023–01–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:traaab:265-en&r=ene |
| By: | Julien Gourdon (FERDI - Fondation pour les Etudes et Recherches sur le Développement International, AFD - Agence française de développement); Matthys Lambert (Sciences Po - Sciences Po); Achille Macé (Sciences Po - Sciences Po) |
| Abstract: | Le 8ème Forum sur la coopération sino-africaine (FOCAC) de Dakar en octobre 2021 a consolidé les piliers d'une « nouvelle ère » de la coopération Chine-Afrique dans divers domaines dont celui de l'Energie. Ainsi la Déclaration sur la coopération Sino-Africaine de lutte contre le changement climatique évoque une intensification du soutien de la Chine au développement des énergies renouvelables et réaffirme l'arrêt de la construction de nouveaux projets charbon sur le continent. Il est intéressant d'examiner d'une part la situation actuelle des réalisations chinoises caractérisée par une présence concentrée sur les énergies fossiles et hydrauliques, d'autre part les contours de la mutation vers des projets moins risqués et moins polluants et enfin les enjeux de ce changement pour les banques et investisseurs chinois. |
| Keywords: | Chine, Financement du développement, Changement climatique |
| Date: | 2022–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:spmain:hal-03638964&r=ene |
| By: | Karel Janda (Charles University, Faculty of Social Sciences, Institute of Economic Studies & Prague University of Economics and Business, Faculty of Finance and Accounting); Eva Michalikova (Faculty of Business and Management, Brno University of Technology, Brno, Czech Republic); Luiz Célio Souza Rocha (Management Department - Federal Institute of Education, Science and Technology - North of Minas Gerais, Almenara, Brazil); Paulo Rotella Junior (Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic & Department of Production Engineering - Federal University of Paraíba, Joao Pessoa, Brazil & Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Barbora Schererova (Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic); Jan Sila (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic & Institute of Information Theory and Automation, Czech Academy of Sciences, Prague, Czech Republic); David Zilberman (University of California, Berkeley) |
| Abstract: | This paper summarizes the main findings of the results in the literature on the role of ethanol in reducing retail gasoline prices in the United States. We provide a comprehensive overview of the key results and methodologies used to obtain them. The paper documents the growing research interest in the assessment of the impacts of biofuels on agricultural commodity prices and overall price dynamics; presents the research trends, thematic map and the conceptual structure map; and identifes the main directions of the corn-ethanol focused biofuels literature through the analysis of predominant clusters. The last key contribution is the proposed research agenda. |
| Keywords: | biofuels, corn, ethanol, gasoline, U.S. retail prices, systematic literature review |
| JEL: | C38 Q16 Q42 |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2022_31&r=ene |
| By: | Berge, Erling (Centre for Land Tenure Studies, Norwegian University of Life Sciences) |
| Abstract: | Humanity’s problem with climate change has been likened to a “tragedy of the commons”. If the atmosphere is seen as an open access dump for gasses like CO2 or methane, Garret Hardin’s conclusion from 1968: “Freedom in a commons brings ruin to all” is obviously correct. But how do we create a regime where access to the atmosphere is controlled? The problem of cleaning up the atmosphere has also been likened to a “public good” problem. Stopping the emissions and cleaning up the atmosphere will cost. Each nation may reason that this cost might be postponed a year or two. The immediate problems of the society have to be solved first. And – if the rest of the world manages to retard the emissions sufficiently we might not have to pay that much. In the provision of public goods there is this free rider problem. This is the background for a closer look at Norway from our earliest legislation: Did we experience collective action problems involving social dilemmas like the tragedy of the commons or the provision of public goods? If we did, did we solve the problems by developing institutions? Problems were identified in our earliest cattle farming communities and in our medieval urban settlements. The problems could be resolved through legislation. |
| Keywords: | Climate; social dilemma; Norway; legislation |
| JEL: | P48 Q30 Q54 |
| Date: | 2023–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nlsclt:2023_001&r=ene |
| By: | Zhang, Xin; Zhang, Xun; Liu, Yuehua; Zhao, Xintong; Chen, Xi |
| Abstract: | This study is one of the first investigating the causal evidence of the morbidity costs of fine particulates (PM2.5) for all age cohorts in a developing country, using individual-level health spending data from a basic medical insurance program in Wuhan, China. Our instrumental variable (IV) approach uses thermal inversion to address potential endogeneity in PM2.5 concentrations and shows that PM2.5 imposes a significant impact on healthcare expenditures. The 2SLS estimates suggest that a 10 μg/m3 reduction in monthly average PM2.5 leads to a 2.36% decrease in the value of health spending and a 0.79% decline in the number of transactions in pharmacies and healthcare facilities. Also, this effect, largely driven by the increased spending in pharmacies, is more salient for males and children, as well as middle-aged and older adults. Moreover, our estimates may provide a lower bound to individuals' willingness to pay, amounting to CNY 43.87 (or USD 7.09) per capita per year for a 10 μg/m3 reduction in PM2.5. |
| Keywords: | air quality, health spending, willingness to pay, China |
| JEL: | Q51 Q53 I11 I31 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1217&r=ene |
| By: | Frederick van der Ploeg (Department of Economics, University of Oxford); Johannes Emmerling (RFF-CMCC European Institute on Economics and the Environment, Centro Euro-Mediterraneo sui Cambiamenti Climatici); Ben Groom (Department of Economics, University of Exeter) |
| Abstract: | An analytical formula is presented for the Social Cost of Carbon (SCC) taking account of intragenerational income inequality, in addition to intergenerational income inequality, macro-economic uncertainty and rare disasters to economic growth. The social discount rate is adjusted for intra- and intergenerational inequality aversion and risk aversion. If growth reduces intragenerational inequality, the SCC is lower than with inequality-neutral growth, especially if intra- and intergenerational inequality aversion are high. Calibrated to the observed interest rate and risk premium, the SCC in 2020 is $125/tCO2 without considering intragenerational inequality, $81/tCO2 if intragenerational inequality decreases over time, as a continuation of historical trends suggests (based on Shared Socioeconomic Pathway (SSP) 2), and $213/tCO2 if inequality increases (SSP4). Intragenerational inequality has a similar order of effect on the SSC as accounting for rare macroeconomic disasters. |
| Keywords: | social discount rate, social cost of carbon, intra- and intergenerational inequality aversion, risk aversion, inequality, growth, uncertainty |
| JEL: | C61 D31 D62 D81 G12 H23 Q54 |
| Date: | 2023–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:2301&r=ene |
| By: | Till Kösters (Institute of Transport Economics, Muenster); Marlena Meier (Institute of Transport Economics, Muenster); Gernot Sieg (Institute of Transport Economics, Muenster) |
| Abstract: | Grandfather rights require airlines to operate at least 80% of their slots, if they are to keep them in the next scheduling period. To prevent losing slots, the airlines may operate slot-rescue flights, an airline strategy called slot hoarding. We model strategies of a monopolistic airline which chooses between long-haul and short-haul flights at a slot-coordinated airport. In cases of a binding use-it-or-lose-it rule, we observe a bias in the airline route network in favor of slot-rescue flights on short-haul distances. Slot-rescue flights reduce airline profits, but raise consumer surplus and airport profits. The overall effect of slot-rescue flights on welfare, however, remains ambiguous. Recently, slot hoarding and its climate impact have received considerable attention during the COVID-19 pandemic. We show that the environmental effects of slot-rescue flights are asymmetric. The climate damage of slot hoarding in the EU is reduced by the EU ETS, whereas CORSIA is rather ineffective. |
| Keywords: | Use-it-or-lose-it rule, Slot hoarding, Climate damage, EU ETS, CORSIA, COVID-19 |
| JEL: | L93 R48 Q51 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:mut:wpaper:36&r=ene |
| By: | Nathanael, Marvelous |
| Abstract: | Inflasi di semua negara mengalami kenaikan yang signifikan, dimana biasanya hanya pada kisaran 1% kini bisa sampai 8 bahkan lebih dari 10%, apalagi yang paling ditakutkan bagi orang – orang adalah naiknya bunga KPR sehingga mereka terpaksa menjual rumah mereka karena tidak mampu membayarnya. Oleh sebab itu, di Indonesia bank sentral dan fiscal harus beriringan rukun tanpa intervensi kewenangan BI. Yang terpenting sekarang adalah bukan rem uang beredar, melainkan penyelesaian dari kenaikan barang dan jasa. |
| Date: | 2022–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:mz435&r=ene |
| By: | Nanang Adie Setyawan; Hadiahti Utami; Bayu Setyo Nugroho; Mellasanti Ayuwardani; Suharmanto |
| Abstract: | This study set out to determine what motivated SMEs in Semarang City to undertake green supply chain management during the COVID-19 and New Normal pandemics. The purposive sampling approach was used as the sampling methodology in this investigation. There are 100 respondents in the research samples. The AMOS 24.0 program's structural equation modelling (SEM) is used in this research method. According to the study's findings, the Strategic Orientation variable significantly and favourably affects the Green Supply Chain Management variable expected to have a value of 0.945, and the Government Regulation variable has a positive and strong influence on the variable Green Supply Chain Management with an estimated value of 0.070, the Green Supply Chain Management variable with an estimated value of has a positive and significant impact on the environmental performance variable. 0.504, the Strategic Orientation variable with an estimated value of has a positive and significant impact on the environmental performance variable. 0.442, The Environmental Performance variable is directly impacted positively and significantly by the Government Regulation variable, with an estimated value of 0.041. This significant positive influence is because SMEs in Semarang City have government regulations, along with government support for facilities regarding efforts to implement the concept of environmental concern, causing high environmental performance caused by the optimal implementation of Green supply chain management is built on a collaboration between the government and the supply chain's participants. |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2212.12891&r=ene |
| By: | Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | The purpose of this paper is to critically examine the multinational oil companies' (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on improving female status by improving nutrition in the Niger Delta region of Nigeria. This paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 768 women respondents were sampled across the rural areas of the Niger Delta region. The results from the use of a combine propensity score matching and logit model indicate that GMoU model has made significant impact in the key areas of assessment - gender-sensitive nutrition education, food security at household level, reduction on food taboos and female access to education. This suggests that CSR interventions targeting to improve the nutrition status of girls and adolescents will help to ensure that female’s status improves throughout the life circle in the region. This implies that MOCs’ investment in the nutrition of female is an important short-term barometer in assessing expected returns to improving household nutrition and overall human development capacity for sub-Saharan Africa. This research contributes to the inequality debate in the women’s nutrition and inclusive growth literature from the CSR perspective. It concludes that business has an obligation to help in solving problems of public concern. |
| Keywords: | Female status, female nutrition, corporate social responsibility, multinational oil companies, sub-Saharan Africa |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:22/023&r=ene |