nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒01‒30
forty-one papers chosen by
Roger Fouquet
London School of Economics

  1. Integrated Power and Economic Analysis of Austria's Renewable Electricity Transformation By Robert Gaugl; Mark Sommer; Claudia Kettner; Udo Bachhiesl; Thomas Florian Klatzer; Lia Gruber; Michael Böheim; Kurt Kratena; Sonja Wogrin
  2. Peer-to-Peer Solar and Social Rewards: Evidence from a Field Experiment By Stefano Carattini; Kenneth Gillingham; Xiangyu Meng; Erez Yoeli
  3. The Impact of International Trade on the Price of Solar Photovoltaic Modules: Empirical Evidence By Ivan Hajdukovic
  4. Returns to Solar Panels in the Housing Market: A Meta Learner Approach By Elias Asproudis; Cigdem Gedikli; Oleksandr Talavera; Okan Yilmaz
  5. Small-scale solar panel adoption by the non-residential sector: The effects of national and targeted policies in Australia By Rohan Best; Paul J. Burke
  6. Transición energética argentina. Avances hacia la construcción de una herramienta para su monitoreo By Bianchetti, Luca
  7. Demand for Electricity on the Global Electrification Frontier By Burgess, Robin; Greenstone, Michael; Ryan, Nicholas; Sudarshan, Anant
  8. Moving from Linear to Conic Markets for Electricity By Anubhav Ratha; Pierre Pinson; Hélène Le Cadre; Ana Virag; Jalal Kazempour
  9. Exchange Rate Pass-Through to Food and Energy Consumer Price Inflation By Richhild Moessner
  10. Heterogeneous Household Responses to Energy Price Shocks By Gert Peersman; Joris Wauters
  11. Why Germany’s “Gas Price Brake” Encourages Moral Hazard and Raises Gas Prices By Markus Dertwinkel-Kalt; Christian Wey
  12. The Price Responsiveness of Shale Producers: Evidence from Micro Data By Knut Are Aastveit; Hilde C. Bjørnland; Thomas S. Gundersen
  13. Urban Pollution: A Global Perspective By Rainald Borck; Philipp Schrauth
  14. Atmospheric Pollution in Chinese Cities: Trends and Persistence By Guglielmo Maria Caporale; Nieves Carmona-González; Luis Alberiko Gil-Alana
  15. From sellers' screens to buyers' screens: Screen-to-Screen Smartphone App to digitize all types of print receipts, invoices and paper documents for sustainability and green development By Moustafa, Khaled
  16. A Marginal Abatement Cost Curve for Greenhouse gases attenuation by additional carbon storage in French agricultural land By L. Bamière; V. Bellassen; D. Angers; R. Cardinael; E. Ceschia; C. Chenu; J. Constantin; N. Delame; A. Diallo; A.-I. Graux; S. Houot; K. Klumpp; C. Launay; E. Letort; R. Martin; D. Mézière; C. Mosnier; O. Réchauchère; M. Schiavo; O. Thérond; S. Pellerin
  17. Electricity Supply Interruptions in the Philippines: Characteristics, Trends, Causes By Francisco, Kris A.
  18. Mexico: Financial Sector Assessment Program-Technical Note on Climate Risk Analysis By International Monetary Fund
  19. Accelerating ZEV Transitions in India By Ramji, Aditya; Kankaria, Riddhi
  20. Promoting Environmental Sustainability in Africa: Evidence from Governance Synergy By Awa Traoré; Cheikh T. Ndour; Simplice A. Asongu
  21. Cointegrating Polynomial Regressions With Power Law Trends: Environmental Kuznets Curve or Omitted Time Effects? By Yicong Lin; Hanno Reuvers
  22. Assessing the Competitiveness of Secondary Battery Value Chains: Policy Implications By Kim, Minji; Lee, Jun
  23. Impacts of economic growth and CO2 emissions on health expenditures in Morocco ARIB Fatima, TARBALOUTI Essaid, ET-TOUILE Houria, MOUSSANE Aboutayeb By Arib Fatima; Tarbalouti Essaid; Houria Et-Touile; Moussane Aboutayeb
  24. Early warnings and emerging accountability: Total’s responses to global warming, 1968-2021 By Christophe Bonneuil; Pierre-Louis Choquet; Benjamin Franta
  25. Financial development, human capital and energy transition: A global comparative analysis By Elvis D. Achuo; Pilag B.C. Kakeu; Simplice A. Asongu
  26. Towards integrating social dynamics into climate economic scenarios literature review By Barth, Simon
  27. Climate change heterogeneity: A new quantitative approach By Maria Dolores Gadea; Jesus Gonzalo
  28. Adapting long-lived investments under climate change uncertainty By Eisenack, Klaus; Paschen, Marius
  29. ESG disclosure: regulatory framework and challenges for Italian banks By Tommaso Loizzo; Federico Schimperna
  30. The optimal fuel and emission tax combination for life-cycle emissions under imperfect competition By Hiroaki Ino; Toshihiro Matsumura
  31. The trilemma of innovation, logistics performance, and environmental quality in 25 topmost logistics countries: a quantile regression evidence By Magazzino, Cosimo; Alola, Andrew Adewale; Schneider, Nicolas
  32. Klimaneutrale Postdienstleistungen: Wo stehen die Brief- und Paketdienstleister in Deutschland? By Thiele, Sonja; Junk, Petra; Niederprüm, Antonia
  33. Breaking it down: a techno-economic assessment of the impact of battery pack design on disassembly costs By Lander, Laura; Tagnon, Chris; Nguyen-Tien, Viet; Kendrick, Emma; Elliott, Robert J.R.; Abbott, Andrew P.; Edge, Jacqueline S.; Offer, Gregory J.
  34. Negotiations of Oil and Gas Auxiliary Lease Clauses: Evidence from Pennsylvania’s Marcellus Shale By Max Harleman; Pramod Manohar; Elaine L. Hill
  35. A Unifying Theory of Foreign Intervention in Domestic Climate Policy By Juan Moreno-Cruz; Anthony Harding
  36. Risk Management of Energy Communities with Hydrogen Production and Storage Technologies By Feng, Wenxiu; Ruiz Mora, Carlos
  37. Induced Innovation and Carbon Leakage By Jonathon M. Becker; Jared C. Carbone; Andreas Loeschel
  38. Greenhouse gases emissions: estimating corporate non-reported emissions using interpretable machine learning By Jeremi Assael; Thibaut Heurtebize; Laurent Carlier; Fran\c{c}ois Soup\'e
  39. Climate justice, from top to bottom By Eloi Laurent
  40. Climate change increases resource-constrained international immobility By Hélène Benveniste; Michael Oppenheimer; Marc Fleurbaey
  41. Regulatory Stringency and Emission Leakage Mitigation By Fabio Antoniou; Panos Hatzipanayotou; Nikos Tsakiris

  1. By: Robert Gaugl; Mark Sommer (WIFO); Claudia Kettner; Udo Bachhiesl; Thomas Florian Klatzer; Lia Gruber; Michael Böheim (Austrian Institute of Economic Research); Kurt Kratena; Sonja Wogrin
    Abstract: In this paper, we present a novel approach of linking the technical model of the continental European electricity system ATLANTIS with the macroeconomic model DYNK to provide comprehensive integrated power and socio-economic analyses. We thoroughly describe both models and explain the work that has been done to interlink the models. Further, we take Austria's generation expansion plans to transform the electricity sector to 100 percent renewable energy sources (national balance) by 2030 and analyse the effects of different CO 2 prices on the electricity demand that couples the two models via a feedback loop. As the electricity price and demand are interlaced and influence each other, the linked models are solved iteratively until convergence, i.e., until the change of the electricity demand from the DYNK model does not affect the electricity price in the ATLANTIS model anymore. The results show that coupling a technical and macroeconomic model is possible and convergence is achieved after just a few iterations.
    Keywords: Renewable energy, Macroeconomic modelling, Electricity economics, DC-OPF, Model linkage, Austria
    Date: 2023–01–13
  2. By: Stefano Carattini; Kenneth Gillingham; Xiangyu Meng; Erez Yoeli
    Abstract: Observability has been demonstrated to influence the adoption of pro-social behavior in a variety of contexts. This study implements a field experiment to examine the influence of observability in the context of a novel pro-social behavior: peer-to-peer solar. Peer-to-peer solar offers an opportunity to households who cannot have solar on their homes to access solar energy from their neighbors. However, unlike solar installations, peer-to-peer solar is an invisible form of pro-environmental behavior. We implemented a set of randomized campaigns using Facebook ads in the Massachusetts cities of Cambridge and Somerville, in partnership with a peer-to-peer company. In the campaigns, treated customers were informed that they could share “green reports” online, providing information to others about their greenness. We find that interest in peer-to-peer solar increases by up to 30% when “green reports, ” which would make otherwise invisible behavior visible, are mentioned in the ads.
    Keywords: peer to peer solar, pro-environmental behavior, social rewards, visibility, Facebook
    JEL: C93 D91 Q20
    Date: 2022
  3. By: Ivan Hajdukovic (University of Barcelona)
    Abstract: This paper provides an empirical examination on the relationship between international trade and the price of solar photovoltaic (PV) modules. Using a sample of 15 countries over the period 2006-2015, we propose a dynamic linear panel data model based on a new specification, including number of relevant factors influencing solar PV module prices. The empirical analysis reveals that an increase in imports of solar PV cells and modules is associated with a decline in solar PV module prices. This finding suggests that international trade could lead to further price reductions, thus fostering the deployment of solar PV technology. The use of renewable energy can in turn have positive effects on environmental quality by reducing the emission of detrimental greenhouse gases generated by the consumption of fossil fuels. The empirical part reveals several other important findings. Market and technological development are key factors explaining the decline in solar PV module prices. Government policies such as public budget for R&D in PV and feed-in tariff for solar PV are effective in reducing the price of solar PV modules. Moreover, an increase in renewable energy consumption has a negative influence on solar PV module prices.
    Keywords: Dynamic panel data models, Solar photovoltaic module prices, Trade and Environment, Trade and Environment JEL Classification: C23, F18, Q42, Q56
    Date: 2022–10–07
  4. By: Elias Asproudis (Swansea University); Cigdem Gedikli (Swansea University); Oleksandr Talavera (University of Birmingham); Okan Yilmaz (Swansea University)
    Abstract: This paper aims to estimate the returns to solar panels in the UK residential housing market. Our analysis applies a causal machine learning approach to Zoopla property data containing about 5 million observations. Drawing on meta-learner algorithms, we provide strong evidence fortifying that solar panels are directly capitalized into sale prices. Our results point to a selling price premium above 6 percent (range between 6.2 percent to 6.9 percent depending on the meta-learner) associated with solar panels. Considering that the average selling price is 230, 536 GBP in our sample, this corresponds to an additional 14, 293 GBP to 15, 906 GBP selling price premium for houses with solar panels. Our results are robust to traditional hedonic pricing models and matching techniques.
    Keywords: solar panels; residential housing market; sale prices; machine-learning; meta-learners
    JEL: R21 R31 Q42 Q5
    Date: 2023–01
  5. By: Rohan Best (Department of Economics, Macquarie University); Paul J. Burke (Crawford School of Public Policy, Australian National University)
    Abstract: Use of solar photovoltaic (PV) panels by the non-residential sector can contribute to climate-change mitigation and boost economic outcomes. Prior studies have primarily focused on the residential sector. Using data from 1, 595 postcodes across the Australian National Electricity Market, we investigate five novel research questions for non-residential solar-panel adoption. National and sectoral policies, business size, and cross-sectoral influences are found to be key drivers of non-residential solar PV uptake. We find a subsidy elasticity of about 1.2 for Australia’s Small-scale Renewable Energy Scheme (SRES), an economy-wide renewable portfolio standard for small-scale renewables. Residential solar capacity is positively associated with future adoption by the local non-residential sector, and geographical convergence effects are observed. The findings align with the principle that investment is spurred by policies that lower upfront capital costs. Following Australia’s experience, a small-scale renewable portfolio standard is particularly worthy of consideration for further adoption.
    Date: 2022–04
  6. By: Bianchetti, Luca
    Abstract: En Argentina, repensar la matriz energética sin menoscabar otras dimensiones del desarrollo es de suma relevancia (CEPAL, 2017). No existen estudios descriptivos de la transición energética para el caso argentino que utilicen una herramienta que refleje la complejidad y multidimensionalidad del desafío. Dentro de un proyecto de investigación más amplio buscamos describir el progreso de la transición energética en Argentina desde el enfoque de la triple sostenibilidad.
    Keywords: Recursos Energéticos; Sostenibilidad; Argentina;
    Date: 2022–11
  7. By: Burgess, Robin (Dept of Economics, LSE); Greenstone, Michael (Dept of Economics, University of Chicago); Ryan, Nicholas (Dept of Economics, Yale University); Sudarshan, Anant (Department of Economics, University of Warwick)
    Abstract: Falling off-grid solar prices and an expanding grid are revolutionizing choices for nearly a billion people without electricity. Using experimental price variation, we estimate demand for all electricity sources in Bihar, India, during a four-year period when electrification leapt from 27% to 64%. We find that: (i) household surplus from electrification increased five-fold; (ii) both solar and the grid boost electrification but households gain more surplus from the grid; (iii) grid investments and subsidies strongly reduce demand for off-grid solar. When we extend the model to eight African countries where grid infrastructure is weaker and subsidies lower we find that off-grid solar often provides higher surplus than the grid. JEL Codes: O13 ; Q41 ; Q21 ; C93
    Date: 2023
  8. By: Anubhav Ratha (DTU Electrical Engineering [Lyngby] - DTU - Danmarks Tekniske Universitet = Technical University of Denmark); Pierre Pinson (Imperial College London); Hélène Le Cadre (INOCS - Integrated Optimization with Complex Structure - Inria Lille - Nord Europe - Inria - Institut National de Recherche en Informatique et en Automatique - ULB - Université libre de Bruxelles - CRIStAL - Centre de Recherche en Informatique, Signal et Automatique de Lille - UMR 9189 - Centrale Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Ana Virag (VITO - Flemish Institute for Technological Research); Jalal Kazempour (DTU Electrical Engineering [Lyngby] - DTU - Danmarks Tekniske Universitet = Technical University of Denmark)
    Abstract: We propose a new forward electricity market framework that admits heterogeneous market participants with second-order cone strategy sets, who accurately express the nonlinearities in their costs and constraints through conic bids, and a network operator facing conic operational constraints. In contrast to the prevalent linear-programming-based electricity markets, we highlight how the inclusion of second-order cone constraints improves uncertainty-, asset-, and network-awareness of the market, which is key to the successful transition towards an electricity system based on weather-dependent renewable energy sources. We analyze our general market-clearing proposal using conic duality theory to derive efficient spatially-differentiated prices for the multiple commodities, comprised of energy and flexibility services. Under the assumption of perfect competition, we prove the equivalence of the centrally-solved market-clearing optimization problem to a competitive spatial price equilibrium involving a set of rational and self-interested participants and a price setter. Finally, under common assumptions, we prove that moving towards conic markets does not incur the loss of desirable economic properties of markets, namely market efficiency, cost recovery, and revenue adequacy. Our numerical studies focus on the specific use case of uncertainty-aware market design and demonstrate that the proposed conic market brings advantages over existing alternatives within the linear programming market framework.
    Keywords: OR in energy, spatial equilibrium, mechanism design, electricity markets, conic economics
    Date: 2022
  9. By: Richhild Moessner
    Abstract: This paper studies exchange rate pass-through to food and energy consumer price inflation and its dependence on the inflation environment using cross-country panel estimation of Phillips curves. It considers a large panel of OECD member and candidate economies with quarterly data from 1994 to 2021. We find that exchange rate pass-through is largest for energy CPI inflation and also significant for food CPI inflation. A 10% depreciation in the exchange rate leads to an increase in energy CPI inflation of around 2 percentage points (pp) at the quarterly horizon and of 4pp at the yearly horizon; it leads to an increase in food CPI inflation of around 0.3pp and 2pp at the quarterly and yearly horizon, respectively. We also find some evidence that exchange rate pass-through to food and energy CPI inflation depends on the inflation environment, with higher inflation leading to larger pass-through.
    Keywords: inflation, food prices, energy prices, exchange rates
    JEL: E31 E52 E58 F31
    Date: 2022
  10. By: Gert Peersman; Joris Wauters
    Abstract: We use survey evidence on reported spending in hypothetical energy price shock scenarios to study novel features of the price elasticity of energy demand and the marginal propensity to consume (MPC) after paying the energy bill. We find that the price elasticity is significantly larger for price increases than price decreases and diminishes heavily for greater price hikes. The elasticity is also larger for households undertaking major home renovations over the next months, and smaller for families with more appetite to consume. For the MPC, we document greater responses of non-energy consumption when energy prices increase compared to price decreases. MPCs are also larger for households with low income and/or saving buffer, and households reporting their future financial situation is difficult to predict. Finally, we show that targeted price subsidies on energy for Belgian low-income households are much more effective in supporting non-energy consumption than the general VAT reduction on energy prices.
    Keywords: energy demand, marginal propensity to consume, household heterogeneity
    JEL: D12 E21 H31 Q41 Q43
    Date: 2022
  11. By: Markus Dertwinkel-Kalt; Christian Wey
    Abstract: To help German households and firms with exploding energy costs, the German government is about to implement a new transfer scheme called “gas price brake.” A unique feature of this energy price relief measure is that both households and the industry receive a transfer that increases in one’s actual gas price. In a formal model, we show that such a transfer scheme creates incentives for moral hazard of gas providers to raise gas prices. We also show that competition does not help to overcome this adverse effect of the gas price brake. An equivalent critique applies to the electricity price brake that is to be implemented at the same time as the gas price brake.
    Keywords: energy prices, energy policy, consumer protection policy, gas price brake
    JEL: D04 L12 Q48 K33
    Date: 2022
  12. By: Knut Are Aastveit; Hilde C. Bjørnland; Thomas S. Gundersen
    Abstract: We show that shale oil producers respond positively to favourable oil price signals, and that this response is mainly associated with the timing of production decisions through well completion and refracturing, consistent with the Hotelling theory of optimal extraction. This finding is established using a novel proprietary data set consisting of more than 200, 000 shale wells across ten U.S. states spanning almost two decades. We document large heterogeneity in the estimated responses across the various shale wells, suggesting that aggregation bias is an important issue for this kind of analysis. Our empirical results call for new models that can account for a growing share of shale oil in the U.S., the inherent flexibility of shale extraction technology in production and the role of shale oil in transmitting oil price shocks to the global economy.
    Keywords: Oil price, Shale oil supply, Well-level panel data
    JEL: C23 Q41 Q43
    Date: 2022–11–09
  13. By: Rainald Borck; Philipp Schrauth
    Abstract: We use worldwide satellite data to analyse how population size and density affect urban pollution. We find that density significantly increases pollution exposure. Looking only at urban areas, we find that population size affects exposure more than density. Moreover, the effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. By and large, the influence of population on pol-lution is greatest in Asia and middle-income countries. A counterfactual simulation shows that PM2.5 exposure would fall by up to 36% and NO2 exposure up to 53% if within countries population size were equalized across all cities.
    Keywords: population density, air pollution, gridded data
    JEL: Q53 R12
    Date: 2022
  14. By: Guglielmo Maria Caporale; Nieves Carmona-González; Luis Alberiko Gil-Alana
    Abstract: This paper applies fractional integration methods to investigate the behaviour of various pollutants (PM10, PM25, SO2 and NO2) in seven Chinese cities (Shanghai, Beijing, Chongqing, Tianjin, Shenzhen, Nanjing and Xian) using daily data over the period January 1, 2014 – November 18, 2022. The results suggest that the steps recently taken by the Chinese authorities to reduce emissions and improve air quality have already had some effect: in most cases the air pollutant series are in the stationary range, with mean reversion occurring and shocks only having temporary effects, and there are significant downward trends indicating a decline over time in the degree of pollution in Chinese cities. It is also interesting that in the most recent period the Zero-Covid policy of the Chinese authorities has led to a further fall. On the whole, it would appear that the action plan adopted by the Chinese government is bringing the expected environmental benefits and therefore it is to be hoped that such policies will continue to be implemented and extended to improve air quality even further.
    Keywords: China, pollution, trends, persistence, long-range dependence
    JEL: C22 Q53
    Date: 2022
  15. By: Moustafa, Khaled (Founder & Editor of ArabiXiv)
    Abstract: Billions of purchasing receipts, invoices and bills are printed every year worldwide. Manufacturing paper and printing involve large quantities of natural resources (trees, water and energy) while producing large amounts of chemical pollutants and greenhouse gases in the atmosphere. If visual smartphone-scannable codes (VSC) can be developed to encrypt and store large amounts of texts such as purchasing receipts and invoices, and if a smartphone application (App) is developed to scan such codes “from screen-to-screen” (sellers’ screens to buyers’ screens), substantial amounts of environmental resources can be saved and considerable amounts of chemical pollutants and green gas emissions can be avoided. For this purpose, a smartphone App, called “Screen-to-Screen” (STS) is proposed to transfer purchasing receipts and invoices directly from sellers’ monitor displays (i.e., supermarkets, stores, restaurants, pharmacies, etc.) to customer smartphones’ screens without the need to print them anymore. Customers should need only to scan visual scannable codes (VSC) that encrypt purchasing details to convert them into digital formats on the customers’ smartphones screens. As a result, significant amounts of energy, trees, and water can be protected, and important amounts of environmental wastes and chemicals (inks, plastics) used in paper manufacturing and printing can be saved for more vital needs than for printing.
    Date: 2022–12–27
  16. By: L. Bamière (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); V. Bellassen (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); D. Angers; R. Cardinael; E. Ceschia (CESBIO - Centre d'études spatiales de la biosphère - IRD - Institut de Recherche pour le Développement - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées - INSU - CNRS - Institut national des sciences de l'Univers - OMP - Observatoire Midi-Pyrénées - IRD - Institut de Recherche pour le Développement - UT3 - Université Toulouse III - Paul Sabatier - Université Fédérale Toulouse Midi-Pyrénées - INSU - CNRS - Institut national des sciences de l'Univers - CNES - Centre National d'Études Spatiales [Toulouse] - CNRS - Centre National de la Recherche Scientifique - Météo-France - CNES - Centre National d'Études Spatiales [Toulouse] - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); C. Chenu (ECOSYS - Ecologie fonctionnelle et écotoxicologie des agroécosystèmes - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); J. Constantin (AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - Université Fédérale Toulouse Midi-Pyrénées - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); N. Delame (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); A. Diallo (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); A.-I. Graux (PEGASE - Physiologie, Environnement et Génétique pour l'Animal et les Systèmes d'Elevage [Rennes] - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); S. Houot (ECOSYS - Ecologie fonctionnelle et écotoxicologie des agroécosystèmes - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); K. Klumpp (UREP - Unité Mixte de Recherche sur l'Ecosystème Prairial - UMR - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); C. Launay (ECOSYS - Ecologie fonctionnelle et écotoxicologie des agroécosystèmes - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, AGIR - AGroécologie, Innovations, teRritoires - Toulouse INP - Institut National Polytechnique (Toulouse) - Université Fédérale Toulouse Midi-Pyrénées - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); E. Letort (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); R. Martin (UREP - Unité Mixte de Recherche sur l'Ecosystème Prairial - UMR - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); D. Mézière; C. Mosnier (UMRH - Unité Mixte de Recherche sur les Herbivores - UMR 1213 - VAS - VetAgro Sup - Institut national d'enseignement supérieur et de recherche en alimentation, santé animale, sciences agronomiques et de l'environnement - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); O. Réchauchère (Agronomie - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); M. Schiavo (SMART-LERECO - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); O. Thérond; S. Pellerin (UMR ISPA - Interactions Sol Plante Atmosphère - Bordeaux Sciences Agro - Ecole Nationale Supérieure des Sciences Agronomiques de Bordeaux-Aquitaine - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Following the Paris agreement in 2015, the European Union (EU) set a carbon neutrality objective by 2050, and so did France. The French agricultural sector can contribute as a carbon sink through carbon storage in biomass and soil, in addition to reducing GHG emissions. The objective of this study is to quantitatively assess the additional storage potential and cost of a set of eight carbon-storing practices. The impacts of these agricultural practices on soil organic carbon storage and crop production are assessed at a very fine spatial scale, using crop and grassland models. The associated area base, GHG budget, and implementation costs are assessed and aggregated at the region level. The economic model BANCO uses this information to derive the marginal abatement cost curve for France and identify the combination of carbon storing practices that minimizes the total cost of achieving a given national net GHG mitigation target. We find that a substantial amount of carbon, 36.2 to 52.9 MtCO2e yr-1, can be stored in soil and biomass for reasonable carbon prices of 55 and 250 € tCO2e-1, respectively (corresponding to current and 2030 French carbon value for climate action), mainly by developing agroforestry and hedges, generalising cover crops, and introducing or extending temporary grasslands in crop sequences. This finding questions the 3-5 times lower target of 10 MtCO2e.yr-1 retained for the agricultural carbon sink by the French climate neutrality strategy. Overall, this would decrease total French GHG emissions by 9.2 to 13.8%, respectively (reference year 2019).
    Abstract: Suite aux accords de Paris en 2015, l'Union européenne (UE) s'est fixé un objectif de neutralité carbone d'ici à 2050, tout comme la France. En plus de réduire les émissions de GES, le secteur agricole français peut contribuer à la neutralité carbone en tant que puits de carbone, par le stockage de carbone dans le sol et la biomasse. L'objectif de cette étude est de quantifier le potentiel de stockage additionnel et le coût d'un ensemble de huit pratiques stockantes. Les impacts de ces pratiques agricoles sur le stockage du carbone organique du sol et les rendements des cultures sont évalués à une échelle spatiale très fine, à l'aide de modèles de cultures et de prairies. L'assiette, le bilan GES net et le coût de mise en œuvre associés à chaque pratique sont également évalués et agrégés au niveau régional. Le modèle économique BANCO utilise ces informations pour générer la courbe de coût marginal d'abattement pour la France, et identifier la combinaison de pratiques stockantes qui minimise le coût total pour atteindre un objectif national donné d'atténuation des émissions de GES nettes. Nous montrons qu'une quantité non négligeable de carbone, de 36, 2 à 52, 9 MtCO2e an-1, peut être stockée dans le sol et la biomasse pour des prix du carbone raisonnables de 55 et 250 € tCO2e-1, respectivement (correspondant à la "valeur de l'action pour le climat" actuelle et 2030, fixée par le gouvernement français), et cela principalement par le développement de l'agroforesterie et des haies, la généralisation des cultures intermédiaires, l'introduction ou l'extension des prairies temporaires dans les séquences de culture. Ce résultat remet en cause l'objectif 3 à 5 fois inférieur retenu pour le puits de carbone agricole (10 par la stratégie nationale bas carbone. Globalement, ce stockage additionnel de carbone permettrait de réduire les émissions totales de GES de la France de 9, 2 à 13, 8 %, respectivement (année de référence 2019).
    Keywords: soil organic carbon sequestration, climate change mitigation, greenhouse gas, carbon neutrality, agriculture, abatement cost
    Date: 2023–01
  17. By: Francisco, Kris A.
    Abstract: Electricity serves as a vital input to modern economies. Many critical infrastructures such as transportation, telecommunications, banking, and others depend on continuous electricity supply to perform their functions. However, as modern economies continue to move towards digitalization and the adoption of technologies, part of the population still deals with electricity supply interruptions, which greatly hinders productivity. In this study, we analyzed the monthly interruption reports of electric cooperatives submitted to the National Electrification Administration to uncover some interesting trends related to electricity supply interruptions in the Philippines. The analysis provides a fundamental landscape for understanding the intricacies of supply interruptions for the benefit of formulating more appropriate and realistic policy recommendations for the power sector. It also sets the direction for future research work. Overall, the results of this study show that the causes of electricity supply interruptions in the country can be broadly categorized into environment, supply, and technical issues. Comments to this paper are welcome within 60 days from the date of posting. Email
    Keywords: electric power industry;electric cooperatives;electric power infrastructure;power interruptions;electricity supply;energy policy
    Date: 2022
  18. By: International Monetary Fund
    Abstract: Mexico is exposed to both transition and physical risks from climate change. Mexico’s total energy supply is dominated by fossil fuels and non-renewable energy sources. The country is the second largest emitter of greenhouse gases (GHG) in Latin America. Emissions are highly concentrated in a few economic sectors that play an important role in the Mexican economy. The Mexican financial sector has sizable exposures to these emission intensive sectors. As such, the transition to a low carbon economy raises challenges for the economy and financial sector that need to be considered. Meanwhile, Mexico is exposed to a range of physical risks, including acute risks associated with floods and tropical cyclones, by virtue of the exposure to both the North Atlantic and Eastern Pacific hurricane basins, droughts, and heatwaves, and chronic risks.
    Date: 2022–12–08
  19. By: Ramji, Aditya; Kankaria, Riddhi
    Keywords: Social and Behavioral Sciences, electric vehicles, India
    Date: 2022–09–01
  20. 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
  21. By: Yicong Lin (Vrije Universiteit Amsterdam); Hanno Reuvers (Erasmus University Rotterdam)
    Abstract: The environmental Kuznets curve predicts an inverted U-shaped relationship between air pollution and economic growth. Current analyses frequently employ models that restrict nonlinearities in the data to be explained by economic growth only. We propose a Global Trend Augmented Cointegrating Polynomial Regression (GTACPR) to allow for nonlinearities in time and economic growth. The theoretical properties of the GTACPR are established. Empirically, a single global trend accurately captures all nonlinearities for all the countries studied, leading to a linear relationship between GDP and CO2. This suggests that the environmental improvement of the last years is due to factors different from GDP.
    JEL: C12 C13 C32 Q56
    Date: 2022–12–15
  22. By: Kim, Minji (Korea Institute for Industrial Economics and Trade); Lee, Jun (Korea Institute for Industrial Economics and Trade)
    Abstract: Secondary batteries are garnering more and more attention as a key to carbon reduction and eventually, carbon neutrality. Formerly associated mostly with IT devices such as laptop computers and mobile phones, secondary batteries are now enjoying renewed interest and rising demand as they are used to provide power for electric vehicles and to store electricity generated by renewable energy. Korea, China, and Japan are the three strongholds of the secondary battery industry on the world stage. The focus on accelerating the transition to electric vehicles has prompted both Europe and the United States to seek to enhance the stability of secondary battery supply chains, and they have both promulgated a series of measures to foster their own industries, threatening to raise the intensity of global competition and posing challenges for Asian manufacturers. Although Korean companies have been developing innovative secondary battery technologies since the early 1990s, the industry still faces key obstacles to growth, such as a high dependency on imported raw materials and limited domestic demand. In this report, we survey the structure and characteristics of the value chains of the secondary battery industry and assess comparative advantages with the goal of identifying how best to foster the future growth of the Korean secondary battery industry. In order to ensure Korea’s continued leadership in the global secondary battery market, it is critical to maintain the “super-gap” between Korean technologies and others, while also enhancing the robustness of the industry’s value chains.
    Keywords: Electric Vehicle; Secondary Battery Supply Chains; Korean Secondary Battery
    JEL: L62 O25 Q31
    Date: 2022–06–27
  23. By: Arib Fatima (UCA - Université Cadi Ayyad [Marrakech]); Tarbalouti Essaid (UCA - Université Cadi Ayyad [Marrakech]); Houria Et-Touile (UCA - Université Cadi Ayyad [Marrakech]); Moussane Aboutayeb (UCA - Université Cadi Ayyad [Marrakech])
    Abstract: Health expenditures, CO2 emissions, and economic growth play a central role in the current debate on environmental protection and sustainable development. Carbon dioxide is the main GHGs that deteriorates the environment and has an impact on human health. At the same time, economic growth also impacts health conditions positively or vice versa. This paper attempts to study the impact of economic growth and CO2 emissions on health expenditures in the presence of trade per capita and gross fixed capital formation in Morocco using auto regressive distributed lag (ARDL) method for the period 1990-2020. Our empirical results show that there is a significant long-run as well as the short-run relationship between health expenditures, CO2 emissions, and economic growth in Morocco. The empirical evidence indicates a significant positive impact of CO2 emissions and economic growth on health expenditures in Morocco over the study period. The results also revealed that CO2 emissions and economic growth had a positively significant impact on health expenditures in the long run; however, there was no significant impact in the short run. Fixed capital formation and trade per capita were also found to have no significant impact on health expenditures in the short run. The current study and results have significant implications in theory and practice. Then, policy recommendations to control pollution, especially CO2 emissions and health expenditures without compromising economic growth are proposed.
    Abstract: Les dépenses de santé, les émissions de CO2 et la croissance économique jouent un rôle central dans le débat actuel sur la protection de l'environnementet le développement durable, Le dioxyde de carbone est le principal GES qui détériore l'environnement et a un impact sur la santé humaine. En parallèle, la croissance économique affecte également les conditions de santé, parfois de manière positive ou vice versa. Notre article s'efforce d'étudier l'impact de la croissance économique et des émissions de CO2 sur les dépenses de santé en présence de la formation brute de capital fixe et du commerce par habitant au Maroc en utilisant un modèle dynamique de données de panel estimé à l'aide de la méthode des ARDL pour la période 1990-2020. Nos résultats empiriques montrent qu'il existe une relation significative à long terme ainsi qu'à court terme entre les dépenses de santé, les émissions de CO2 et la croissance économique au Maroc. L'évidence empirique indique un impact positif significatif des émissions de CO2 et de la croissance économique sur les dépenses de santé du Maroc pour la période étudiée. Les résultats ont également révélé que les émissions de CO2 et la croissance économique avaient un impact positivement significatif sur les dépenses de santé à long terme ; cependant, il n'y avait pas d'impact significatif à court terme. Il a également été constaté que la formation de capital fixe et du commerce par habitant n'avait d'impact significatif sur les dépenses de santé à court terme. L'étude et les résultats actuels ont des implications significatives en théorie et en pratique. Ensuite, des recommandations de politiques visant à contrôler la pollution, en particulier les émissions de CO2 et les dépenses de santé sans compromettre la croissance économique sont proposées.
    Keywords: health expenditures, economic growth, CO2 emissions, Morocco, ARDL, croissance économique, émissions de CO2, Maroc, dépenses de santé
    Date: 2022–12
  24. By: Christophe Bonneuil (CRH (UMR 8558 CNRS / EHESS) - Centre de Recherches Historiques (CRH) _ Unité Mixte de Recherches (UMR 8558 CNRS / EHESS) - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Pierre-Louis Choquet (CSO - Centre de sociologie des organisations (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Benjamin Franta (Stanford University)
    Abstract: Building upon recent work on other major fossil fuel companies, we report new archival research and primary source interviews describing how Total responded to evolving climate science and policy in the last 50 years. We show that Total personnel received warnings of the potential for catastrophic global warming from its products by 1971, became more fully informed of the issue in the 1980s, began promoting doubt regarding the scientific basis for global warming by the late 1980s, and ultimately settled on a position in the late 1990s of publicly accepting climate science while promoting policy delay or policies peripheral to fossil fuel control. Additionally, we find that Exxon, through the International Petroleum Industry Environmental Conservation Association (IPIECA), coordinated an international campaign to dispute climate science and weaken international climate policy, beginning in the 1980s. This represents one of the first longitudinal studies of a major fossil fuel company's responses to global warming to the present, describing historical stages of awareness, preparation, denial, and delay.
    Keywords: Oil industry, Climate change, Global warming, Agnotology, Denial, Public relations
    Date: 2021
  25. 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
  26. By: Barth, Simon
    Abstract: Climate policy options are usually elaborated scientifically by Integrated Assessment Models that combine the economic system, the energy system and the climate system in one comprehensive framework. Most of them follow a neo-classical economic paradigm and calculate cost-efficient technological transformation pathways of the energy system. Critique has grown that the real-world problem is more complex especially with regard to the dynamics reigning in human societies. These should be considered in the models in order to derive effective policy recommendations. This literature review presents and structures a list of publications making first steps into this direction, either by delivering promising methodological suggestions, by reporting evidence on social dynamics or by presenting first model integrations. By this, the paper illuminates the scientific challenge of integrating social dynamics into climate economic scenarios and builds a knowledge basis for future research endeavors.
    Keywords: climate economics, social dynamics, energy transitions, integrated assessment
    Date: 2022
  27. By: Maria Dolores Gadea; Jesus Gonzalo
    Abstract: Climate change is a non-uniform phenomenon. This paper proposes a new quantitative methodology to characterize, measure, and test the existence of climate change heterogeneity. It consists of three steps. First, we introduce a new testable warming typology based on the evolution of the trend of the whole temperature distribution and not only on the average. Second, we define the concepts of warming acceleration and warming amplification in a testable format. And third, we introduce the new testable concept of warming dominance to determine whether region A is suffering a worse warming process than region B. Applying this three-step methodology, we find that Spain and the Globe experience a clear distributional warming process (beyond the standard average) but of different types. In both cases, this process is accelerating over time and asymmetrically amplified. Overall, warming in Spain dominates the Globe in all the quantiles except the lower tail of the global temperature distribution that corresponds to the Arctic region. Our climate change heterogeneity results open the door to the need for a non-uniform causal-effect climate analysis that goes beyond the standard causality in mean as well as for a more efficient design of the mitigation-adaptation policies. In particular, the heterogeneity we find suggests that these policies should contain a common global component and a clear local-regional element. Future climate agreements should take the whole temperature distribution into account.
    Date: 2023–01
  28. By: Eisenack, Klaus; Paschen, Marius
    Abstract: Does climate change adaptation require that investments are designed to be more robust? What about when climate change is more uncertain? What if the climate changes faster? This decision problem is difficult if the design of the investments is irreversible for their lifetime, for instance, in the construction industry. We study an irreversible design decision when the investment starts, combined with an irreversible option to abandon. The design determines the investment's robustness to sustain detrimental conditions. We find that for short-lived investments, optimal robustness decreases if the climate changes faster, and increases if uncertainty is higher. For long-lived investments, these effects reverse. This has implications for decision makers who plan infrastructure adaptation, for instance, that adverse climate change does not require more robust investments under the identified circumstances.
    Keywords: Irreversibility, Lifetime, Optimal stopping, Robustness, Stochastic dynamic control
    JEL: C61 D25 D81 Q54
    Date: 2022
  29. By: Tommaso Loizzo (Bank of Italy); Federico Schimperna (Bank of Italy)
    Abstract: In line with developments at the global level, the attention of financial regulators on ESG factors, particularly on environmental and climate-related risks, has significantly increased over recent years. In this context, disclosure of relevant climate-related information plays a key role, for both financial and non-financial stakeholders. The EU regulatory framework on disclosure is rather advanced when compared with other jurisdictions and will be almost ready for implementation in the next few months. The Bank of Italy, in line with the ECB and other national supervisors, has started a number of initiatives aimed at actively contributing to major international projects, strengthening the dialogue with the national industry and assessing the progress made by supervised entities. The paper: i) summarises the main regulatory requirements for ESG disclosure; ii) investigates the areas of commonalities at the EU level between the Pillar 3 disclosure requirements and those envisaged by the standards under development by the EFRAG; iii) takes stock of the main supervisory initiatives undertaken so far and presents some preliminary thoughts on the major challenges ahead to be faced by Italian banks.
    Keywords: ESG, sustainability, climate change, disclosure, CSRD, banks, Pillar 3, ESRS
    JEL: G21 K20 M41
    Date: 2022–12
  30. By: Hiroaki Ino (School of Economics, Kwansei Gakuin University); Toshihiro Matsumura (Institute of Social Science, The University of Tokyo)
    Abstract: This study examines the optimal combination of emission and fuel taxes for reducing greenhouse gas emissions. Greenhouse gases are emitted during both production and consumption stages. We present two cases in which a government should impose an additional fuel tax even when an optimal emission tax is introduced: the case in which consumers select the fuel consumption and case in which a producer selects fuel efficiency endogenously. In other words, we show that a government should maintain fuel taxes even after introducing an effective emission tax.
    Keywords: fuel tax, emission tax, carbon pricing, heterogeneous consumers, vehicle industry
    JEL: Q58 Q48 H23 L51
    Date: 2023–01
  31. By: Magazzino, Cosimo; Alola, Andrew Adewale; Schneider, Nicolas
    Abstract: While the deployment of technological innovation was able to avert a devastating global supply chain fallout arising from the impact of ravaging COronaVIrus Disease 19 (COVID-19) pandemic, little is known about potential environmental cost of such achievement. The aim of this paper is to identify the determinants of logistics performance and investigate its empirical linkages with economic and environmental indicators. We built a macro-level dataset for the top 25 ranked logistics countries from 2007 to 2018, conducting a set of panel data tests on cross-sectional dependence, stationarity and cointegration, to provide preliminary insights. Empirical estimates from Fully Modified Ordinary Least Squares (FMOLS), Generalized Method of Moments (GMM), and Quantile Regression (QR) model suggest that technological innovation, Human Development Index (HDI), urbanization, and trade openness significantly boost logistic performance, whereas employment and Gross Fixed Capital Formation (GFCF) fail to respond in such a desirable path. In turn, an increase in the Logistic Performance Index (LPI) is found to worsen economic growth. Finally, LPI exhibits a large positive effect on carbon emissions, which is congruent with a strand of the literature highlighting that the modern supply chain is far from being decarbonized. Thus, this evidence further suggest that more global efforts should be geared to attain a sustainable logistics.
    Keywords: CO emissions; Economic growth; Green supply chain management; Logistics performance; Panel data; Quantile regression
    JEL: L91 L92 N70
    Date: 2021–11–01
  32. By: Thiele, Sonja; Junk, Petra; Niederprüm, Antonia
    Abstract: Die Brief- und Paketdienstleister in Deutschland haben die Notwendigkeit erkannt, ihre Prozesse nachhaltiger zu gestalten. Sie haben begonnen, ihre Emissionen zu reduzieren, sind aber weit entfernt davon, klimaneutrale Postdienste anzubieten, die nur für einen Restbestandteil fossiler Energie auf Kompensationsmaßnahmen beruhen - und nicht als hauptsächliche Maßnahme. Am weitesten fortgeschritten ist die Deutsche Post DHL, die aufgrund ihrer hohen Ertragskraft größere finanzielle Spielräume hat und sich daher im Vergleich zu den Wettbewerbern im Brief- und Paketmarkt in einer Sonderposition befindet. Basierend auf einer ersten Annäherung schätzen wir für das Jahr 2020, dass Transportemissionen nationaler Briefe für 0, 3%, jene nationaler Pakete für 2, 3 bis 2, 9% der Treibhausgase im Verkehrssektor verantwortlich waren. In der Beförderung von Briefen und Paketen macht der Langstreckentransport mit schweren Nutzfahrzeugen den größten Emissionsanteil aus. Die Zustellung ist für etwa ein Viertel der Emissionen verantwortlich. In der Zustellung setzen die Dienstleister aktuell die meisten Reduktionsmaßnahmen um. Dennoch schöpfen sie das Potenzial für emissionsarme Zustellung nicht aus. Vor allem in Städten könnten bereits heute mehr elektrifizierte Fahrzeuge und Lastenräder für die letzte Meile eingesetzt werden. Unserer Einschätzung nach ist es angesichts steigender Paketmengen erforderlich, dass die Anbieter bei den Reduktionsmaßnahmen sowohl in der logistischen Wertschöpfungskette als auch in nicht-logistikbezogenen Bereichen an Geschwindigkeit zulegen. Die wesentlichen Hemmnisse für die nachhaltige Transformation von Brief- und Paketdiensten sind einerseits fehlende Technologien für Langstreckentransporte, andererseits hohe Investitions- und Transaktionskosten für den Umbau der bestehenden Transportund Zustellnetzen. Kleine und mittlere Unternehmen sowie Nachunternehmer haben größere Schwierigkeiten als große Unternehmen, in emissionsarme Fahrzeuge und dafür erforderliche Infrastruktur zu investieren. Es fehlen Hilfen und Unterstützung für diese Gruppe durch die Paketdienste, sowie einfachere Verfahren für die Beantragung von Fördergeldern und den Ausbau der Ladeinfrastruktur. Zudem fehlen umfassende Konzepte zur klimaneutralen Zustellung sowohl in Städten als auch auf dem Land, die durch jeweils eigene Herausforderungen gekennzeichnet sind. Kooperative Ansätze für die Einsammlung und Zustellung in ländlichen Gebieten sind bisher nur in Einzelfällen zu finden, wenn Briefdienstleister auch Pakete zustellen. Unserer Einschätzung nach sind weitere Impulse von außen für die nachhaltige Transformation der Brief- und Paketdienste erforderlich. Als mögliche Akteure können der Onlinehandel und Kommunen auftreten, die ein Eigeninteresse daran haben, emissionsarme Versandlösungen voranzutreiben. Insgesamt gibt es noch zu wenig zuverlässige und vergleichbare Informationen über den Treibhausgasausstoß durch Post- und Paketdienste. Wir halten deswegen die Entwicklung und Anwendung (europaweit) einheitlicher Standards für erforderlich. Weitere Marktbeobachtung, Forschung und Monitoring der Maßnahmen zur nachhaltigen Transformation der Brief- und Paketdienstleister durch die Bundesnetzagentur halten wir zur Erhöhung der Transparenz für sinnvoll. Langfristig sollte ein Monitoring der Emissionen folgen.
    Date: 2022
  33. By: Lander, Laura; Tagnon, Chris; Nguyen-Tien, Viet; Kendrick, Emma; Elliott, Robert J.R.; Abbott, Andrew P.; Edge, Jacqueline S.; Offer, Gregory J.
    Abstract: The electrification of the transport sector is a critical part of the net-zero transition. The mass adoption of electric vehicles (EVs) powered by lithium-ion batteries in the coming decade will inevitably lead to a large amount of battery waste, which needs handling in a safe and environmentally friendly manner. Battery recycling is a sustainable treatment option at the battery end-of-life that supports a circular economy. However, heterogeneity in pack designs across battery manufacturers are hampering the establishment of an efficient disassembly process, hence making recycling less viable. A comprehensive techno-economic assessment of the disassembly process was conducted, which identified cost hotspots in battery pack designs and to guide design optimisation strategies that help save time and cost for end-of-life treatment. The analyses include six commercially available EV battery packs: Renault Zoe, Nissan Leaf, Tesla Model 3, Peugeot 208, BAIC and BYD Han. The BAIC and BYD battery packs exhibit lower disassembly costs (US$50.45 and US$47.41 per pack, respectively), compared to the Peugeot 208 and Nissan Leaf (US$186.35 and US$194.11 per pack, respectively). This variation in disassembly cost is due mostly to the substantial differences in number of modules and fasteners. The economic assessment suggests that full automation is required to make disassembly viable by 2040, as it could boost disassembly capacity by up to 600 %, while substantially achieving cost savings of up to US$190 M per year.
    Keywords: battery pack design; battery pack disassembly; circular economy; electric vehicles; techno-economics
    JEL: J1
    Date: 2023–02–01
  34. By: Max Harleman; Pramod Manohar; Elaine L. Hill
    Abstract: Oil and gas lease negotiations provide mineral owners the opportunity to negotiate for both compensation and auxiliary clauses that may protect their health and properties. We use optical character recognition to assemble a novel dataset of compensation and specific clauses in nearly 60, 000 leases signed in the Marcellus Shale Play of Pennsylvania. We leverage the dataset to produce three main findings. First, contrary to the standard utility maximization model, we find a positive relationship between compensation and clauses. Second, we find that as development of the shale play progressed over time, compensation rose and leases became more likely to contain environmentally protective clauses. Third, we find that compensation and the presence of clauses have a weak relationship with the geologic productivity of nearby wells. Together, our findings indicate that oil and gas firms simultaneously make concessions by raising compensation and approving clauses, but these concessions do not depend on geologic productivity. This suggests that some mineral owners, such as those that are high-income or from more socially organized communities, have the skills or resources to negotiate for more favorable leases all-around and point to similar environmental justice concerns identified in other shale plays.
    JEL: D23 Q32 Q33 R11
    Date: 2022–12
  35. By: Juan Moreno-Cruz; Anthony Harding
    Abstract: We propose a theory of climate-policy motivated foreign intervention to study different forms of international climate governance in the presence of power imbalance. Foreign countries have at least three options to intervene in another country’s domestic climate policy: i.) Agreements with Extraction; ii.) Agreements with Transfers; and iii.) Agreements with Sanctions. We distill the fundamental properties of different climate policy options into a simple parameterization and examine the incentivizes and preferences for each type of foreign intervention. We find that the preference for the type of foreign intervention depends critically on the policy externality of different domestic climate policies.
    Keywords: climate change, mitigation, adaptation, geoengineering, international environmental agreements
    JEL: Q54 Q55 C72
    Date: 2022
  36. By: Feng, Wenxiu; Ruiz Mora, Carlos
    Abstract: The distributed integration of renewable energy sources plays a central role in the decarbonization of economies. In this regard, energy communities arise as a promising entity to coordinate groups of proactive consumers (prosumers) and incentivize the investment on clean technologies. However, the uncertain nature of renewable energy generation, residential loads, and trading tariffs pose important challenges, both at the operational and economic levels. We study how this management can be directly undertaken by an arbitrageur that, making use of an adequate price tariff system, serves as an intermediary with the central electricity market to coordinate different types of prosumers under risk aversion. In particular, we consider a sequential futures and spot market where the aggregated shortage or excess of energy within the community can be traded. We aim to study the impact of the integration of hydrogen production and storage systems, together with a parallel hydrogen market, on the community operation. These interactions are modeled as a game theoretical setting in the form of a stochastic two-stage bilevel optimization problem, which is latter reformulated without approximation as a single-level mixed-integer linear problem (MILP). An extensive set of numerical experiments based on real data is performed to study the operation of the energy community under different technical and economical conditions. Results indicate that the optimal involvement in futures and spot markets is highly conditioned by the community's risk aversion and self-sufficiency levels. Moreover, the external hydrogen market has a direct effect on the community's internal price-tariff system, and depending on the market conditions, may worsen the utility of individual prosumers.
    Keywords: Energy Community; Hydrogen Market; Risk Management; Sequential Energy Markets; Storage Systems
    Date: 2023–01–16
  37. By: Jonathon M. Becker (Department of Economics and Business, Colorado School of Mines); Jared C. Carbone (Department of Economics and Business, Colorado School of Mines); Andreas Loeschel (Ruhr University Bochum)
    Abstract: We explore the ability of unilateral climate policies to induce innovation and diffusion of technology and its impacts on carbon leakage. We consider both energy-saving and carbon-saving (end-of-pipe) technologies, such as carbon capture and storage (CCS). To do so, we combine a computable general equilibrium (CGE) model of North-South trade with assumptions about R&D-based technological change to simulate counterfactual climate policies in the North. We model both a carbon tax and a carbon tariff levied on imports from South to North. Both policies drive an increase in R&D in carbon-saving technologies which comes primarily at the expense of investment in other sectors. Carbon-saving technology allows the North to meet its carbon reduction target without abating as much fossil fuel use, leaving demand and international prices for fossil fuels closer to pre-policy levels. Reduced R&D in energy and energy-intensive sectors raises the cost of production in these sectors. Both effects mitigate carbon leakage in the South. Technology diffusion to the South has a modest effect on leakage under the carbon tax. It leads to somewhat larger reductions in leakage when the cap is paired with carbon tariffs, as the tariffs provide an incentive for the South to adopt carbon-saving technologies developed in the North.
    Keywords: induced innovation, R&D, carbon leakage, carbon tariffs, carbon tax, carbon cap, technology diffusion, knowledge spillovers, computable general equilibrium
    JEL: C68 F10 O30 Q43 Q55
    Date: 2022–08
  38. By: Jeremi Assael (BNPP CIB GM Lab, MICS); Thibaut Heurtebize (BNPP CIB GM Lab); Laurent Carlier (BNPP CIB GM Lab); Fran\c{c}ois Soup\'e
    Abstract: As of 2022, greenhouse gases (GHG) emissions reporting and auditing are not yet compulsory for all companies and methodologies of measurement and estimation are not unified. We propose a machine learning-based model to estimate scope 1 and scope 2 GHG emissions of companies not reporting them yet. Our model, specifically designed to be transparent and completely adapted to this use case, is able to estimate emissions for a large universe of companies. It shows good out-of-sample global performances as well as good out-of-sample granular performances when evaluating it by sectors, by countries or by revenues buckets. We also compare our results to those of other providers and find our estimates to be more accurate. Thanks to the proposed explainability tools using Shapley values, our model is fully interpretable, the user being able to understand which factors split explain the GHG emissions for each particular company.
    Date: 2022–12
  39. By: Eloi Laurent (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po)
    Abstract: In this paper, I attempt to give empirical meaning to climate justice by defining simple criteria of allocation of the remaining global carbon budget based on biophysics constraints and recognized justice principles. The originality of the paper, beyond the choice of indicators meeting justice criteria and their empirical incarnation, is to connect global climate justice to national climate justice, showing how a given country (France in this case) can opt for a national strategy of emissions reduction criteria to allocate its national globally determined carbon budget. In this sense, the paper descends from biophysical constraint down to individual allocation. The first section of the paper deals with global climate justice while the second section relates to national climate justice in France.
    Abstract: Dans cet article, je tente de donner un sens empirique à la notion de justice climatique en définissant des critères simples d'allocation du bilan carbone global restant à émettre d'ici à 2050 sur la base de contraintes biophysiques et de principes de justice reconnus dans la littérature académique. L'originalité de l'article, au-delà du choix des indicateurs correspondant à ces critères et de leur incarnation empirique, est de relier la justice climatique mondiale à la justice climatique nationale, en montrant comment un pays donné (la France en l'occurrence) peut opter pour une stratégie nationale de réduction de ses émissions pour allouer son budget carbone national globalement déterminé. En ce sens, l'article permet de descendre de la contrainte biophysique jusqu'à l'allocation individuelle. La première section de l'article traite de la justice climatique mondiale tandis que la deuxième section porte sur les modalités de la justice climatique nationale en France.
    Keywords: climate justice, carbon budget, COP 26, France
    Date: 2021–01–01
  40. By: Hélène Benveniste (Harvard University [Cambridge]); Michael Oppenheimer (Princeton University); Marc Fleurbaey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Migration is a widely used adaptation strategy to climate change impacts. Yet resource constraints caused by such impacts may limit the ability to migrate, thereby leading to immobility. Here we provide a quantitative, global analysis of reduced international mobility due to resource deprivation caused by climate change. We incorporate both migration dynamics and within-region income distributions in an integrated assessment model. We show that climate change induces decreases in emigration of lowest-income levels by over 10% in 2100 for medium development and climate scenarios compared with no climate change and by up to 35% for more pessimistic scenarios including catastrophic damages. This effect would leave resource-constrained populations extremely vulnerable to both subsequent climate change impacts and increased poverty.
    Date: 2022–07
  41. By: Fabio Antoniou (Athens University of Economics and Business); Panos Hatzipanayotou (Athens University of Economics and Business); Nikos Tsakiris
    Abstract: We construct a two-country trade model where emissions are an input in production and generate cross-border pollution. We examine the strategic incentives of an active regulator that sets a binding level of emissions in production. We show that, in the presence of terms of trade and emission leakage strategic motives, tighter regulation can mitigate emission leakage, reduce global pollution, and improve a country's welfare. This result and the corresponding policy implications depend on the relative magnitude of emissions intensities of goods between sectors and on their relationship in production and consumption.
    Keywords: Environmental Regulation, International Trade, Emission Leakage, Cross-border Pollution
    JEL: F18 H23 Q54
    Date: 2023–01–13

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