nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒02‒20
forty-two papers chosen by
Roger Fouquet
London School of Economics

  1. From prosumer to flexumer: Case study on the value of flexibility in decarbonizing the multi-energy system of a manufacturing company By Markus Fleschutz; Markus Bohlayer; Marco Braun; Michael D. Murphy
  2. Navigating the energy trilemma during geopolitical and environmental crises By Richard S. J. Tol
  3. Electricity adequacy in Switzerland and Europe for the winter 2022-2023 By Darudi, Ali; Weigt, Hannes
  4. Principal component regression analysis of electricity consumption factors in Madagascar By Ramaharo, Franck M.; Rajaonarison, Njakanasandratra R.
  5. Chasing the Sun and Catching the Wind: Energy Transition and Electricity Prices in Europe By Mr. Serhan Cevik; Keitaro Ninomiya
  6. The economic impact of a deep decarbonisation pathway for China: a hybrid model analysis through bottom-up and top-down linking By Xin Su; Frédéric Ghersi; Fei Teng; Gaëlle Le Treut; Meicong Liang
  7. Environmental Impacts of Redispatching in Decarbonizing Electricity Systems: A Spanish Case Study By Davi-Arderius, Daniel; Schittekatte, Tim
  8. Implications of EU Fit for 55 Package for Korean Carbon Neutrality Policy By Kang, Ji Hyun
  9. Net Zero or Zero Chance? PV in Korea, Japan, and China, and Implications for Policy By Gwak, Daejong
  10. Policies and Corporate Responses to the Plastic Pollution Crisis By Park, Yumi
  11. Support for Renewable Energy, The Case of Windpower By Robert Germeshausen; Sven Heim; Ulrich Wagner
  12. Public charging requirements for battery electric long-haul trucks in Europe: A trip chain approach By Shoman, Wasim; Yeh, Sonia; Sprei, Frances; Plötz, Patrick; Speth, Daniel
  13. Heterogeneity in the Pass-Through from Oil to Gasoline Prices: A New Instrument for Estimating the Price Elasticity of Gasoline Demand By Lutz Kilian; Xiaoqing Zhou
  14. Green Energy Finance and Gender Disparity: The Case of Mountain Areas in Bangladesh By Amin, Sakib Bin; Chowdhury, Mainul Islam; Jamasb, Tooraj; Khan, Farhan; Nepal, Rabindra
  15. Local Labor Market Impacts of the Energy Transition: Prospects and Policies By Gordon H. Hanson
  16. Activating Korea's Hydrogen Energy Industry By Hur, Sun Kyung
  17. Korean and Chinese Carbon Neutrality Strategies: Comparative Analysis and Implications for Policy By Park, Sohee
  18. Decarbonization of financial markets: a mean-field game approach By Pierre Lavigne; Peter Tankov
  19. Financial Contracts for Differences By Schlecht, Ingmar; Maurer, Christoph; Hirth, Lion
  20. Does the Launch of Shanghai Crude Oil Futures Stabilize the Spot Market ? A Financial Cycle Perspective By Dan Zhang; Arash Farnoosh; Zhengwei Ma
  21. Multi-Objective Auctions for Utility-Scale Solar-Battery Systems: The Case of ASEAN and East Asia By Toba, Natsuko; Jamasb, Tooraj; Maurer, Luiz; Sen, Anupama
  22. Matching of Everyday Power Supply and Demand with Dynamic Pricing: Problem Formalisation and Conceptual Analysis By Thibaut Th\'eate; Antonio Sutera; Damien Ernst
  23. Do Technology Standards Induce Innovation in Environmental Technologies When Coordination is Important? By Myriam Gregoire-Zawilski; David Popp
  24. Productive versus environmental objectives of agricultural policies dealing with climate change: a French case study By Tiphaine Guillet; Lauriane Mouysset
  25. Increasing Highway Capacity Induces More Auto Travel By Volker, Jamey; Handy, Susan
  26. Health Effects of Fuel Transitions in India: Evidence from Panel Data By Azam, Mehtabul
  27. Öffentliche Investitionen und Sozialstaat: Perspektiven der Budgetpolitik im Kontext von Energiekrise, Klimawandel und EU-Budgetregeln By Philipp Heimberger
  28. Updating the Induced Travel Calculator By Volker, Jamey; Handy, Susan
  29. Managing Guyana’s Oil Wealth: Monetary and Exchange Rate Policy Considerations By Ms. Rina Bhattacharya
  30. Opening Remarks for 'Energy and the Economy: The New Energy Landscape' Conference By Lorie Logan
  31. Greenhouse gases mitigation: global externalities and short-termism By Semmler Willi; Di Bartolomeo Giovanni; Fard Behnaz Minooei
  32. Nowcasting Korean Industrial Production By Lee, Sungkyung; Park, Sung Keun
  33. Pengaruh Penambahan Tembaga Nitrat pada SCC Tabung Dan Analisis Pencucian Blade Online pada Turbin Gas Kinerja di Pembangkit Listrik By Subagio, Bagas Herry
  34. Environmental TBTs and Their Effects on Major Korean Industries By Hur, Sun Kyung
  35. Climate change concerns and information spillovers from socially-connected friends By Mayer, Maximilian
  36. More Roads or Public Transit? Insights from Measuring City-Center Accessibility By Lucas J. Conwell; Fabian Eckert; Ahmed Mushfiq Mobarak
  37. The Impact of Environmental Regulations on the Ship Scrapping Market By Nam, Sanguk
  38. Creating consumer awareness of green products through the 6Ps of societal marketing By Ayanda Deliwe
  39. Science, technology and innovation: cooperation, integration and regional challenges By -
  40. Heterogeneous Predictive Association of CO2 with Global Warming By Chen, Liang; Dolado, Juan José; Gonzalo Muñoz, Jesus; Ramos Ramirez, Andrey David
  41. Deutschlands Energieversorgungsrisiko vor Russlands Angriff auf die Ukraine: Ein empirischer Vergleich mit den G7-Staaten By Frondel, Manuel; Hansteen, Sven; Krieg, Marielena; Schmidt, Christoph M.
  42. Apuntes sobre la transición energética de España By Antxon Olabe Egaña

  1. By: Markus Fleschutz; Markus Bohlayer; Marco Braun; Michael D. Murphy
    Abstract: Digitalization and sector coupling enable companies to turn into flexumers. By using the flexibility of their multi-energy system (MES), they reduce costs and carbon emissions while stabilizing the electricity system. However, to identify the necessary investments in energy conversion and storage technologies to leverage demand response (DR) potentials, companies need to assess the value of flexibility. Therefore, this study quantifies the flexibility value of a production company's MES by optimizing the synthesis, design, and operation of a decarbonizing MES considering self-consumption optimization, peak shaving, and integrated DR based on hourly prices and carbon emission factors (CEFs). The detailed case study of a beverage company in northern Germany considers vehicle-to-X of powered industrial trucks, power-to-heat on multiple temperatures, wind turbines, photovoltaic systems, and energy storage systems (thermal energy, electricity, and hydrogen). We propose and apply novel data-driven metrics to evaluate the intensity of price-based and CEF-based DR. The results reveal that flexibility usage reduces decarbonization costs (by 19-80% depending on electricity and carbon removal prices), total annual costs, operating carbon emissions, energy-weighted average prices and CEFs, and fossil energy dependency. The results also suggest that a net-zero operational carbon emission MES requires flexibility, which, in an economic case, is provided by a combination of different flexible technologies and storage systems that complement each other. While the value of flexibility depends on various market and consumer-specific factors such as electricity or carbon removal prices, this study highlights the importance of demand flexibility for the decarbonization of MESs.
    Date: 2023–01
  2. By: Richard S. J. Tol
    Abstract: There are many indicators of energy security. Few measure what really matters -- affordable and reliable energy supply -- and the trade-offs between the two. Reliability is physical, affordability is economic. Russia's latest invasion of Ukraine highlights some of the problems with energy security, from long-term contracts being broken to supposedly secure supplies being diverted to retired power plants being recommissioned to spillovers to other markets. The transition to carbon-free energy poses new challenges for energy security, from a shift in dependence from some resources (coal, oil, gas) to others (rare earths, wind, sunshine) to substantial redundancies in the energy capital stock to undercapitalized energy companies, while regulatory uncertainty deters investment. Renewables improve energy security in one dimension, but worsen it in others, particularly long spells of little wind. Security problems with rare earths and borrowed capital are less pronounced, as stock rather than flow.
    Date: 2023–01
  3. By: Darudi, Ali; Weigt, Hannes
    Abstract: The European electricity system enters the winter of 2022-2023 facing challenges such as reduced availability of French nuclear power, lower than average stored hydro energy and possible gas shortages in the power industry. These challenges limit the amount of energy available to the system during the winter and reduce the system's ability to meet peak demand and. This study quantitatively analyses the security of electricity supply in Europe (with a focus on Switzerland) between November 2022 and April 2023 by simulating electricity generation and trading under various supply and climate scenarios. To provide a conservative analysis, we exclude certain measures such as demand reduction targets and fuel switching efforts. The results show that Europe, and France in particular, can avoid transmission congestion and power shortages in the event of reduced French nuclear availability. However, in a cold winter, supply shortages may occur in gas-dependent countries if reduced French nuclear availability is combined with gas generation being limited to historical levels. Furthermore, if a 20% gas saving is enforced, Europe could face supply shortages in various weather realisations. On the other hand, Switzerland faces few challenges even in cold winters with the reduced availability of French nuclear and the implementation of 10% gas savings in the electricity system. This is due to the flexibility of the Swiss hydro system and trading opportunities with neighbouring countries.
    Keywords: System adequacy, electricity markets, energy crisis
    Date: 2023
  4. By: Ramaharo, Franck M.; Rajaonarison, Njakanasandratra R.
    Abstract: We carry out principal component regression analysis on a dataset consisting of selected relevant economic and energy indicators in order to identify the main driving factors impacting the electricity consumption in Madagascar. Our results show that in accordance with the country's current energy profile, factors related with rural electrification have the most influence on electricity consumption in Madagascar.
    Keywords: principal component analysis; principal component regression; electricity consumption
    JEL: C38 C51 Q43
    Date: 2023–01–26
  5. By: Mr. Serhan Cevik; Keitaro Ninomiya
    Abstract: European power markets are in the midst of unprecedented changes, with a record-breaking surge in energy prices.This paper investigates the impact of green power resources on the level and volatility of wholesale electricity prices at a granular level, using monthly observations for a panel of 24 European countries over the period 2014–2021 and alternative estimation methods including a panel quantile regression approach. We find that renewable energy is associated with a significant reduction in wholesale electricity prices in Europe, with an average impact of 0.6 percent for each 1 percentage points increase in renewable share. We also find evidence for a nonlinear effect—that is, higher the share of renewables, the greater its effect on electricity prices. On the other hand, while quantile estimation results are mixed with regards to the impact of renewables on the volatility of electricity prices, we obtain evidence that renewable energy has a negative effect on volatility at the highest quantiles. Overall, our analysis indicates that policy reforms can help accelerate the green transition while minimizing the volatility in electricity prices.
    Keywords: Energy transition; renewables; electiricity prices; panel quantile regression; Europe; electricity price; quantile estimation result; electricity generation; dampening effect; Electricity; Renewable energy; Renewable resources; Oil prices; Global
    Date: 2022–11–04
  6. By: Xin Su; Frédéric Ghersi (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, CNRS - Centre National de la Recherche Scientifique); Fei Teng; Gaëlle Le Treut; Meicong Liang
    Abstract: Designing mid-century low-emission development strategies is crucial to guiding long-term mitigation pathways at national levels. The cost of low-carbon transition is one of the key concerns in deep decarbonisation pathways (DDPs). In this study, we estimate the macroeconomic cost of a deep decarbonisation pathway for China, by integrating an energysystems optimization model with an economic model through hard linking. Our results show that deep decarbonisation increases the energy expenses of households in the mid-run through, especially, the higher cost of power and its substitution to coal; but not those of firms, who benefit from lower coal prices caused by the reduction of coal demand and reduce costly oil products consumptions early on. Energy-efficiency improvements therefore lead to a decrease of firms' total energy costs, which allows partially compensating the crowding-out effect of low-carbon investment on general productive capital. Compared to business-as-usual, our DDP 2 scenario consequently comes at a small macroeconomic cost, equal to a lag of less than one year of growth in 2050.
    Keywords: Hybrid energy-economy model China deep decarbonisation pathways mitigation, Hybrid energy-economy model, China, deep decarbonisation pathways, mitigation
    Date: 2022–01
  7. By: Davi-Arderius, Daniel (University of Barcelona); Schittekatte, Tim (Massachusetts Institute of Technology)
    Abstract: In recent years, European system operators have been more frequently needing to redispatch generation, load, or both, after the day-ahead market clearing to ensure that the final dispatch schedule does not violate any network limit. In this paper, we focus on the environmental impact of redispatch processes. We use hourly data from the Spanish market operator and transmission system operator between 2019-2021 to analyze the emissions introduced by redispatch processes. We find that while redispatch energy accounts for about 2-4% of total annual electricity demand, it contributes to about 6-11% of the annual power sector’s CO2 emissions. Upwards redispatch energy is nearly entirely provided by polluting power plants, while clean wind generation is by far the most downwards redispatched. We confirm that redispatch volumes increase when the share of intermittent renewables in the supply mix increases but, additionally, show that redispatch volumes also significantly increase during hours with low energy demand. The latter can indicate important inefficiencies in the integration of renewables in the power system, not only leading to higher costs but also emissions. Finally, we find that when considering the CO2 emissions from redispatch, the abated CO2 emissions resulting from marginally increasing renewable generation, substituting coal or gas in the day-ahead schedule, reduces by 0.7-4.5%. We offer several recommendations to reduce the need for redispatch actions and recommendations to make redispatch actions less polluting. A key point is the consideration of a specific ancillary service for voltage control.
    Keywords: renewables; redispatching CO2 emissions; power markets; power system operations; ancillary services
    JEL: L51 L94 Q41 Q42
    Date: 2023–01–25
  8. By: Kang, Ji Hyun (Korea Institute for Industrial Economics and Trade)
    Abstract: On July 14, 2021, the European Union announced EU Fit for 55, a climate target package comprising 13 policies representing legislation and new initiatives. Among the proposals were those related to the transition toward a more competitive industrial structure, including a stronger and expanded EU Emissions Trading System (ETS), the Effort Sharing Regulation Mechanism (CBAM). Also mentioned were the phased abolition of the free allocation of emission rights in aviation, the inclusion of maritime transportation in the ETS framework, and addition of a separate ETS for buildings and road transportation. Stronger ESR targets were announced for areas not originally included in the ETS framework, and full-scale CBAM implementation in five areas was scheduled to begin in 2026 after a transitional period from 2023 to 2025. To support a fair transition and alleviate inequality and energy poverty, Fit for 55 proposes the creation of the Social Climate Fund (SCF), raised through a portion of revenues from the new ETS to encourage clean investment and resolve social distribution issues that may arise amid the green transition. The process behind the EU’s development of carbon neutrality policy leading up to Fit for 55 carries useful implications to Korea. The purpose of this paper is analyze the potential impacts of the Fit for 55 initiative and emphasize the importance of transparency and data sharing in building public support for the policy.
    Keywords: EU Fit for 55; carbon neutrality; environmental policy; emissions; emissions policy; climate change; carbon neutrality policy
    JEL: F55 Q56
    Date: 2021–12–01
  9. By: Gwak, Daejong (Korea Institute for Industrial Economics and Trade)
    Abstract: Compared with the Paris Agreement, in which countries agreed to reduce carbon emissions, the current paradigm is shifting to the pursuit of carbon neutrality, which has cost implications for carbon positive beyond reduction. In order to actively respond to climate change, global regulations and corporate management activities have changed, and as a result, the global economic order is being reorganized with a focus on carbon neutrality. Major countries are promoting the simultaneous achievement of economic revitalization and carbon neutrality through green industry development. In particular, Korea, Japan, and China, the economies of which feature a strong manufacturing sector and energy-intensive industrial structures, as well as insufficient energy resources, face many challenges in transitioning to a carbon-neutral economy. From this point of view, this article examines the carbon-neutral policies of Korea, Japan, and China, summarizes the potential and current status of each country’s photovoltaic (PV) sector, and identifies implications for policy these findings carry for Korea.
    Keywords: energy; energy policy; environmental policy; solar photovoltaic; solar energy; solar power; solar PV; PV; environmental regulations; Korea; China; Japan; net-zero; carbon neutrality; net zero emissions; carbon emissions; emissions policy; climate change
    JEL: Q53 Q54 Q56 Q58
    Date: 2022–04–01
  10. By: Park, Yumi (Korea Institute for Industrial Economics and Trade)
    Abstract: The International Energy Agency (IEA) estimated in May 2020 that as fossil fuel consumption in the transportation sector drops, petrochemicals will explain the majority of future increases in oil demand, accounting for 33 percent of overall growth by 2030 and nearly half by 2050. The announcement in October 2020 that Aramco, the world’s largest oil company, will refit its refinery in Yanbu, Saudi Arabia for petrochemical production supports this forecast. However, climate crisis research group Carbon Tracker stated in a report titled The Future’s Not in Plastics that while oversupply — as exemplified by the expansion at Aramco’s Yanbu facility — hurts profitability, the oil-based plastic industry will suffer from the spread and tightening of regulations designed to combat the plastic pollution crisis. According to BP’s 2019 energy forecast, regulations such as bans on the use of disposable plastics could significantly reduce the demand for oil, which is the key component of most plastics. The European Union Board of Directors resolved last year to accept new contributions from member states in proportion to the amount of non-recyclable plastic waste created to meet future expenditures. If a Carbon Border Adjustment Mechanism (CBAM) is implemented, the future of polymers that are heavily reliant on fossil fuels could become even more uncertain. This article examines the causes of the plastic pollution crisis, which provided the impetus for the enforcement of policies impacting plastic demand, as well as the approaches used by the EU, China, the United States, and South Korea to deal with the crisis. It also examines contemporary responses by businesses and the implications carried for policy.
    Keywords: plastics; pollution; petrochemicals; petrochemical industry; plastic pollution; industrial policy; carbon border adjustment mechanism; CBAM; environmental policy
    JEL: L65 Q53
    Date: 2022–06–01
  11. By: Robert Germeshausen; Sven Heim; Ulrich Wagner
    Abstract: The rise of societal goals like climate change mitigation and energy security calls for rapid capacity growth in renewable electricity sources, yet citizens’ support is put to a test when such technologies emit negative local externalities. We estimate the impact of wind turbine deployment on granular measures of revealed preferences for renewable electricity in product and political markets. We address potentially endogenous siting of turbines with an IV design that exploits quasi experimental variation in profitability induced by subsidies. We find that wind turbines significantly reduce citizens’ support locally, but this effect quickly fades with distance from the site. We assess policy instruments for enhancing citizens’ support for renewable energy in light of our results
    Keywords: Renewable Energy, Wind Power, Public Support, Elections, Externalities
    JEL: D12 D72 Q42 Q48 Q50
    Date: 2023–02
  12. By: Shoman, Wasim; Yeh, Sonia; Sprei, Frances; Plötz, Patrick; Speth, Daniel
    Abstract: Heavy-duty vehicles (HDV) account for less than 2-5% of the vehicles on the road in Europe but contribute to 15-22% of CO2 emissions from road transport. Battery electric trucks (BETs) could be deployed on a large scale to reduce greenhouse gas emissions but they require charging infrastructure that supports long-haul operations. Therefore, assessing the required charging locations, energy, and power requirements is critical. We use a trip-chain-based model to derive charging requirements for BETs in long-haul operation (defined as travel times over 4.5 hours or distances over 360 km) for Europe in 2030. We convert an origin-destination (OD) matrix into trip chains combined with European truck driving regulations to derive break and rest stops. We show that an average charging area (defined as a 25 25 km square, where each square can include multiple charging stations and parking lots with multiple charging points) needs to have four to five times more overnight than megawatt (MW) charging points: We estimate that about 40, 000 overnight charging points (50-100 kW, combined charging system, CCS) and about 9, 000 megawatt charging system (MCS, 0.7- 1.2 MW) points are required to support a BET share of long-haul operations at 15%. On average, 8 and 2 CCS and MCS chargers are required per charging area, and each CCS and MCS serves, on average, 2 and 11 BETs daily, respectively. The daily electricity demand for public charging of BET in each charging area would be around 110 GWh. The model can be applied to any region with similar data. Future work can consider improving the queuing model, assumptions regarding regional differences of BET penetration and heterogeneity of truck sizes and utilization.
    Keywords: Electrification, Heavy duty truck, Charging Station, Battery Electric Truck
    Date: 2023
  13. By: Lutz Kilian; Xiaoqing Zhou
    Abstract: We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. We show that these differences are primarily driven by the cost of producing and distributing gasoline, which varies with states’ access to oil and gasoline transportation infrastructure, refinery technology and environmental regulations, creating cross-sectional gasoline price shocks in response to an aggregate oil price shock. Time-varying estimates do not support the view that the gasoline demand elasticity has declined in absolute value to near zero since the 1980s. The elasticity was stable near -0.3 until the end of 2014. It rose to about -0.2 in 2015-16, but has remained stable since 2016. Gasoline demand is more responsive in states with lower personal income, higher unemployment rates and lower urban population shares. There is no evidence for an asymmetry in the elasticity with respect to positive and negative gasoline price shocks. We illustrate how these elasticity estimates inform the recent policy debate about the impact of gasoline tax holidays on consumers’ discretionary income, about the demand destruction from the spike in gasoline prices after the invasion of Ukraine and about the impact of rising gasoline prices on carbon emissions.
    Keywords: price elasticity; gasoline; demand; Pass-through; taxes; identification; instrumental variables; Cross-sectional
    JEL: D12 Q41
    Date: 2023–01–06
  14. By: Amin, Sakib Bin (North South University); Chowdhury, Mainul Islam (North South University); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Khan, Farhan (North South University); Nepal, Rabindra (University of Wollongong)
    Abstract: This paper examines the relationship between electricity access, gender disparity, and green finance in the mountain areas of Bangladesh. We use a novel new micro-level survey data collected for the purpose of this study. We develop unique weighted indices and applying robust instrumental generalised method of moment estimation. The findings indicate that increase in electricity access (hours) is beneficial to empowerment of women in the Chittagong Hill Tracts (CHT) districts in grid-connected and off-grid areas. Using a quasi-experimental framework, we find no significant evidence suggesting that women from grid-connected households tend to enjoy greater gender parity than women from off-grid areas. This is likely due to increase in adoption of renewable energy devices such as Solar Home System (SHS). Using a probabilistic random utility model, we show that a surge in different expenditures tends to supress adoption of renewable energy in poor households more than in non-poor households, given the high prices and lack of financial schemes to support the purchase of renewable device. The expansion of green financial tools and strategies at the household and macro level is necessary to advance the outreach of renewable energy in the CHT districts to continue achieving gender parity.
    Keywords: Women Empowerment; Gender Disparity; Green Energy; Electricity; Green Finance; Mountain; CHT; Bangladesh.
    JEL: D10 D13 D14 D40 D63 H42 Q41 Q43
    Date: 2023–01–11
  15. By: Gordon H. Hanson
    Abstract: Society’s transition toward more sustainable energy sources is well underway. But substantially reducing the use of fossil fuels to generate electricity, to power vehicles, and to manufacture the stuff of everyday life will profoundly disrupt the communities that currently dedicate themselves to carbon-intensive industries. In this paper, I consider the potential for adverse labor market consequences from the energy transition and the suitability of existing policies to counteract them. Top of mind in this discussion is to avoid repeating the painful adjustment to globalization and automation, which in recent decades brought concentrated job loss and long-lasting economic distress to local labor markets that had been specialized in manufacturing. I begin by mapping the spatial distribution of employment in fossil-fuel-intensive activities across US commuting zones from 2000 forward. Then, using the labor market consequences of the post-1980 decline of coal as a backdrop, I discuss policy options for easing adjustment to the energy transition, including letting market forces work, reinforcing the social safety net, and expanding place-based policies.
    JEL: J6 Q3
    Date: 2023–01
  16. By: Hur, Sun Kyung (Korea Institute for Industrial Economics and Trade)
    Abstract: The world's major countries are aggressively preparing national strategic countermeasures in response to climate change, the fourth industrial revolution and tightening environmental regulations. This paper seeks to make clear the implications of hydrogen energy as a next-generation energy source and the ways in which industry can be structured to ensure a smooth transition to a hydrogen economy. To do this, I examine the economic feasibility, technological power and competitiveness of hydrogen energy, and examine the constraints and regulations facing hydrogen energy in our society and economy. Finally, the main purpose of this study is to derive industrial applications and policy implications of hydrogen energy, which is technically complex but possible to produce anywhere.
    Keywords: renewable energy; energy transition policy; hydrogen; hydrogen economy
    JEL: Q28 Q41 Q42 Q48
    Date: 2023–01–08
  17. By: Park, Sohee (Korea Institute for Industrial Economics and Trade)
    Abstract: As action to respond to the climate crisis galvanizes globally, carbon neutrality, the circular economy and sustainable development are emerging as key concepts for structural socioeconomic transformation. Countries around the world, led by Europe, are now establishing policies and related institutions for carbon neutrality. In pursuing carbon neutrality — which refers to zero net carbon emissions — countries around the world are considering ways to offset greenhouse gas (GHG) emissions by using carbon sinks such as forests and carbon capture, utilization and storage (CCUS) technologies, while reducing greenhouse gas emissions from human activity as much as possible. Each country’s carbon neutrality policies contain a core vision, along with more specific goals, strategies, and implementation plans for carbon neutrality. This work identifies the implications for the Korean response to the challenges described previously and for the promotion of carbon neutrality policies by comparing the Korean and Chinese strategies. This study first examines the current status of carbon neutrality policy promotion in Korea and China, and then draws implications for the promotion of carbon neutrality policy in Korea through a comparative analysis of core carbon neutrality policy case studies in the two countries.
    Keywords: carbon neutrality; net-zero emissions; net-zero; carbon neutrality policy; China; Korea; emissions; carbon emissions; environmental policy; industrial policy; greenhouse gases; GHGs; greenhouse gas emissions; GHG emissions; carbon capture utilization and storage; CCUS
    JEL: Q01 Q56
    Date: 2022–08–01
  18. By: Pierre Lavigne; Peter Tankov
    Abstract: We build a model of a financial market where a large number of firms determine their dynamic emission strategies under climate transition risk in the presence of both green-minded and neutral investors. The firms aim to achieve a trade-off between financial and environmental performance, while interacting through the stochastic discount factor, determined in equilibrium by the investors' allocations. We formalize the problem in the setting of mean-field games and prove the existence and uniqueness of a Nash equilibrium for firms. We then present a convergent numerical algorithm for computing this equilibrium and illustrate the impact of climate transition risk and the presence of green-minded investors on the market decarbonization dynamics and share prices. We show that uncertainty about future climate risks and policies leads to higher overall emissions and higher spreads between share prices of green and brown companies. This effect is partially reversed in the presence of environmentally concerned investors, whose impact on the cost of capital spurs companies to reduce emissions.
    Date: 2023–01
  19. By: Schlecht, Ingmar; Maurer, Christoph; Hirth, Lion
    Abstract: Contracts for differences are widely discussed as a cornerstone of Europe’s future electricity market design. This is a paper on CfD contract design. We summarize the dispatch and investment distortions that conventional CfDs cause, the patches that are used to overcome these shortcomings, and the problems these fixes introduce. We then propose an alternative contract that we dub “financial” CfD. It is a hybrid between conventional CfDs and forward contracts that mitigates revenue risk to a very large degree while providing undistorted incentives and avoiding margin calls. Like traditional CfDs, these contracts are long-term and tailored to technology-specific (wind, solar, nuclear) generation patterns but, like forwards, decouple payments from actual generation. We also propose to mitigate volume risk and to accept physical assets as collateral to avoid margin calls.
    Keywords: renewable energy, contracts for differences, CfDs, electricity
    JEL: Q4
    Date: 2023
  20. By: Dan Zhang (CUP - China University of Petroleum Beijing, IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Arash Farnoosh (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Zhengwei Ma (CUP - China University of Petroleum Beijing)
    Abstract: Based on the examination of price discovery between Shanghai crude oil futures and the spot market, this paper explores whether the introduction of Shanghai crude oil futures can play a stabilizing role in the spot market, alleviating the impact of the financial cycle risk on the crude oil market from March 2018 to December 2019. The results show that there is only a uni-directional relationship of the spot price to futures price, and spot plays a leading role in price discovery. The risk of the financial cycle will increase the volatility of spot price, and the introduction of crude oil futures market can increase the impact of the financial cycle on the spot market. The additional research on the microcosmic mechanism of Shanghai crude oil futures indicates that crude oil futures market mainly influences the spot market fluctuation through the behaviour of traders: speculation increases price volatility in the spot market, which is more pronounced in the high volatility of the financial cycle as oppose to hedging transaction.
    Keywords: Shanghai crude oil futures, Price discovery, Stabilization, Financial cycle
    Date: 2022–01
  21. By: Toba, Natsuko (International Finance Corporation, World Bank Group, US); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Maurer, Luiz (LM Engineering and Consulting, Richmond, US); Sen, Anupama (Smith School of Enterprise and the Environment, University of Oxford, UK)
    Abstract: Globally, auctions are increasingly popular to competitively promote and procure renewable energy technologies to meet energy, social, and climate change objectives. To do so, auction designs need to accommodate technological progress, declining costs, and increasing demand for Environmental, Social and Governance (ESG). This chapter focuses on auctions of large scale solar photovoltaic (PV) and battery energy storage system (BESS) in Southeast and East Asia. It revisits the theoretical and conceptual frameworks of auctions while focusing on the ESG component from the perspective of key stakeholders, such as investors, government, bidders, and communities regarding efficient allocations of risks, costs, and benefits. The chapter then relates this framework to real-world practices and international evidence on solar PV as well as those without BESS. The analysis shows that integrating ESG in the auction designs and business models is possible and could benefit business and sustainable development.
    Keywords: Renewable energy; Solar power; Battery storage; Auction design
    JEL: D00 D40 D80 L00 L10 L90
    Date: 2023–01–15
  22. By: Thibaut Th\'eate; Antonio Sutera; Damien Ernst
    Abstract: The energy transition is expected to significantly increase the share of renewable energy sources whose production is intermittent in the electricity mix. Apart from key benefits, this development has the major drawback of generating a mismatch between power supply and demand. The innovative dynamic pricing approach may significantly contribute to mitigating that critical problem by taking advantage of the flexibility offered by the demand side. At its core, this idea consists in providing the consumer with a price signal which is evolving over time, in order to influence its consumption. This novel approach involves a challenging decision-making problem that can be summarised as follows: how to determine a price signal maximising the synchronisation between power supply and demand under the constraints of maintaining the producer/retailer's profitability and benefiting the final consumer at the same time? As a contribution, this research work presents a detailed formalisation of this particular decision-making problem. Moreover, the paper discusses the diverse algorithmic components required to efficiently design a dynamic pricing policy: different forecasting models together with an accurate statistical modelling of the demand response to dynamic prices.
    Date: 2023–01
  23. By: Myriam Gregoire-Zawilski; David Popp
    Abstract: If further decarbonization of electricity systems is to continue, a next generation of innovation in transformative grid modernization and renewables integration technologies will be needed. Few studies have investigated the policy determinants of innovation in this sector to glean insights on how government may support the development and deployment of these technologies. We argue that policies that were successful at supporting the first wave of renewables innovation may not be sufficient to produce similar results in the next wave of green innovation since those face higher coordination bottlenecks. We investigate the effects of interoperability standards - an instrument that may facilitate coordination - on patenting using smart grid as an example of a technology that has high interoperability requirements. We find that standards decrease patenting at the extensive and intensive margins, but these results vary across types of firms. We find that this negative effect is driven by large firms, whereas standards increase entry by firms without prior smart grid innovation experience. We interpret this result as an information effect: standards provide useful information to new entrants and may help diversify the range of players innovating in this space.
    JEL: O31 Q40 Q55
    Date: 2023–01
  24. By: Tiphaine Guillet (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); Lauriane Mouysset (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: The study aims at reconciling contrasting productive and environmental goals of agricultural policies at a given budget in the context of climate change. Based on a quantitative bioeconomic model integrating interdependencies between agricultural systems and agroecosystems, we compare the impacts of 4 contrasted public policy scenarios based either on productive (food or energy) or environmental goals (pollution reduction or ecosystem state) on a set of 18 bioeconomic indicators. We run the policy scenarios under two contrasted climate change scenarios to investigate their robustness. We confirm that it is possible to achieve productive and environmental goals with the ongoing budget of European agricultural policy. Synergies between productive and environmental performances exist even if they are not trivial nor systematic. More precisely, an agricultural public policy which focuses on energy production might offer a good compromise regarding the different facets of agricultural landscapes. The Pollution scenario constitutes a credible environmentally oriented alternative even if it remains slightly less competitive regarding both ecological and economic sides than an energyoriented policy. Eventually, our analysis shows that our conclusions are robust to climate change, suggesting that adequate agricultural public policies might attenuate climate change effects when considering intermediary climate change scenarios.
    Keywords: land-use change, ecosystem service, bioeconomic model, public policy scenario, Europe, terrestrial biodiversity, socioecological system, climate change
    Date: 2022
  25. By: Volker, Jamey; Handy, Susan
    Abstract: Building additional roadway capacity—via constructing entirely new roadways or extending or adding lanes to existing roadways—is often proposed as a solution to traffic congestion and even as a way to reduce greenhouse gas (GHG) emissions. The logic for the latter is that increasing roadway capacity increases average vehicle speeds, which improves vehicle fuel efficiency and reduces per-mile emissions of GHGs and local air pollutants. But that logic relies on the flawed assumption that the amount that people drive does not change when the time it takes to drive places changes. In fact, the amount that people drive does respond to changes in driving times. Empirical research demonstrates that as roadway supply increases, vehicle miles traveled (VMT) generally does, too. This is the “induced travel” effect—a net increase in VMT across the roadway network due to an increase in roadway capacity, which ultimately erodes any initial increases in travel speeds and causes increased GHG emissions. Researchers at the University of California, Davis reviewed the empirical research on induced travel to understand the likely effects of adding roadway capacity in a variety of contexts. View the NCST Project Webpage
    Keywords: Physical Sciences and Mathematics, Social and Behavioral Sciences, Calculators, Traffic forecasting, Travel demand, Vehicle miles of travel
    Date: 2023–01–01
  26. By: Azam, Mehtabul (Oklahoma State University)
    Abstract: We use a nationally representative panel data and combine difference-in-differences methodology with multivalued treatments to look at the impact of cooking fuel switch towards LPG on the probability of short-term adverse respiratory health outcomes such as cough and cough with breathing issues. We find that a switch by households from polluting fuels to LPG reduces the probability of any household member reporting adverse short-term respiratory issues. However, a switch from polluting fuels to a fuel stacking strategy has no impact on the adverse respiratory health issues. A reverse switch by households from LPG to polluting fuels increases the probability of household members reporting adverse health outcomes. Importantly, the clean switch to LPG has a much larger impact for women in reducing the incidence of short-term adverse respiratory outcomes.
    Keywords: fuel switching, difference-in-differences, multivalued treatments
    JEL: I1 O12
    Date: 2023–01
  27. By: Philipp Heimberger (The Vienna Institute for International Economic Studies, wiiw)
    Abstract: Öffentliche Investitionen und Sozialstaat Perspektiven der Budgetpolitik im Kontext von Energiekrise, Klimawandel und EU-Budgetregeln This publication is available in German language only. For a brief English summary see further below. Im Kontext der Energiekrise und des Klimawandels ist in den kommenden Jahrzehnten eine erhebliche Ausweitung der öffentlichen Investitionen erforderlich. Für Österreich sind bis zum Jahr 2030 die Erfordernisse für öffentliche Investitionen zur Erreichung der Klima- und Energieziele gemäß dem Klima- und Investitionsplan der Bundesregierung mit €9, 5 Milliarden pro Jahr (2, 4% der Wirtschaftsleistung des Jahres 2019) im EU-Ländervergleich hoch. Dabei handelt es sich um eine Untergrenze, da die Klimaziele mittlerweile verschärft wurden. Gleichzeitig stellt der Alterungsprozess der Gesellschaft den Sozialstaat bei Gesundheits-, Sozial- und Bildungsaufgaben vor neue Herausforderungen. Doch der Budgetkonsolidierungsdruck wird in den kommenden Jahren wegen der Auswirkungen der Krisen der letzten Jahre auf den Staatshaushalt steigen. Vor diesem Hintergrund diskutiert diese Kurzanalyse drei stilisierte Szenarien für die Budgetpolitik, die jeweils unterschiedliche Implikationen für die Nachhaltigkeit der Staatsfinanzen und für die Erreichung von Zielen in den Bereichen Klima, Energie und Soziales haben. Public Investment and the Welfare State Perspectives on Fiscal Policy in the Context of the Energy Crisis, Climate Change and EU Fiscal Rules In the context of the energy crisis and climate change, a significant expansion of public investment is required in the coming decades. For Austria, the requirements for public investment to achieve the climate and energy targets by 2030 according to the Federal Government's Climate and Investment Plan are high at €9.5 billion per year (2.4% of economic output in 2019). This is a lower limit, as climate targets have since been tightened. At the same time, the aging process of society poses new challenges for the welfare state in terms of health, social and educational spending. But fiscal consolidation pressures will increase in the coming years because of the impact of the crises of recent years on public finances. Against this backdrop, this briefing paper discusses three stylised scenarios for fiscal policy, each with different implications for the sustainability of government finances and for the achievement of climate, energy and social goals.
    Keywords: Investitionen, Österreich, EU, Europa, Klimawandel, Energiekrise, Sozialstaat
    JEL: H54 H63 R42
    Date: 2023–02
  28. By: Volker, Jamey; Handy, Susan
    Abstract: Expanding roadway capacity often leads to commensurate increases vehicle miles traveled (VMT). This is the “induced travel” effect—a net increase in VMT across the roadway network due to an increase in roadway capacity. This increase in VMT erodes any initial reduction in congestion and causes increased greenhouse gas and local air pollutant emissions. Yet highway expansion projects continue to be proposed across the US, often using congestion relief—and sometimes greenhouse gas reductions— as a justification for adding lanes. The existence of these rosy projections about highway expansion projects indicates that the induced travel effect is often not fully accounted for in travel demand models or in the environmental review process for the projects, as prior research has shown.1 With these problems in mind, researchers at the University of California, Davis developed and launched an online tool in 2019—the NCST Induced Travel Calculator—to help agencies estimate the VMT induced annually by adding lanes to major roadways in California’s urbanized counties. With Calculator use increasing, the UC Davis researchers initiated a project to update the Calculator and improve its functionality based on recent data and empirical research. View the NCST Project Webpage
    Keywords: Social and Behavioral Sciences, Calculators, Traffic forecasting, Travel demand, Vehicle miles of travel
    Date: 2023–01–01
  29. By: Ms. Rina Bhattacharya
    Abstract: International oil producers have discovered commercially recoverable petroleum reserves of around 11 billion barrels that promise to transform Guyana's agricultural and mining economy into an oil powerhouse, while hopefully helping to diversify the non-oil economy. Oil production presents a momentous opportunity to boost inclusive growth and diversify the economy providing resources to address human development needs and infrastructure gaps. At the same time, it presents important policy challenges relating to effective and prudent management of the nation’s oil wealth. This study focusses on one of these challenges: the appropriate monetary policy and exchange rate framework for Guyana as it transitions to a major oil exporter.
    Keywords: monetary policy framework; Guyana; exchange rate policy; oil wealth; recoverable petroleum reserve; oil exporter; oil economy; passthrough to inflation; Exchange rate arrangements; Exchange rate flexibility; Exchange rates; Currency markets; Caribbean; Global; Western Hemisphere
    Date: 2022–11–11
  30. By: Lorie Logan
    Abstract: Dallas Fed President Lorie Logan delivered this address to open the conference hosted by the Federal Reserve Banks of Dallas and Kansas City in Houston.
    Keywords: energy; economy
    Date: 2022–11–10
  31. By: Semmler Willi; Di Bartolomeo Giovanni; Fard Behnaz Minooei
    Abstract: Policies designed to control greenhouse gases imply domestic tradeoffs and international externalities, leading to domestic and international conflicts and influencing their feasibility and implementation. Our paper investigates two quantitative aspects of this debate. We intend to quantify the impact of (a) the internalization of international externalities, and (b) the damage associated with a short-term view of climate policies. In this respect, we adopt the innovative (in this field) idea of model predictive control to formalize moving-horizon policy strategies and, thus, to build counterfactuals characterized by a different horizon for all policymakers.
    Date: 2022–03
  32. By: Lee, Sungkyung (Korea Institute for Industrial Economics and Trade); Park, Sung Keun (Korea Institute for Industrial Economics and Trade)
    Abstract: Since most official estimates of major macroeconomic variables that market participants and policy makers keenly monitor in real time come out with significant publication lags, nowcasting literature especially targeted on key macro variables has trended over the recent years. Nowcasting refers to forecast present values of monthly or quarterly variables by distilling information from big data in real time. Hence, nowcasting is regarded to be a data-driven approach with fewer subjective choices on model specifications involved along the way. In this study, we attempt to nowcast Korean industrial production index adopting the Bok et al. (2018)’s methodology. Industrial production index is also one of real variables to be frequently referred to if one is to get the grasp of current industrial activities. We come up with a systemized framework for nowcasting the industrial production index and found that real variables, such as electricity sales and exports, can be of a great help to track the real-time movements of industrial activities.
    Keywords: nowcasting; production forecasting; electricity sales; Korea; industrial production index; industrial production forecasting
    JEL: E23 L11 M11 O40
    Date: 2022–01–01
  33. By: Subagio, Bagas Herry
    Abstract: Permasalahan utama yang sering terjadi dalam pengoperasian dan pemeliharaan pembangkit listrik adalah penurunan keandalan turbin gas. Penurunan kinerja turbin gas yang sering mengalami trip ini tercatat paling tinggi 3 kali dalam satu hari. Berdasarkan pemeriksaan, ditemukan endapan pada sudu kompresor dan turbin selama pengoperasian. Penurunan daya pada unit pembangkit dibarengi dengan peningkatan konsumsi bahan bakar. Tujuan dari penelitian ini adalah menganalisis blade washing online terhadap kinerja turbin gas akibat terbentuknya endapan karbon pada roda kompresor dan roda turbin. Untuk meningkatkan kehandalan gas engine diperlukan suatu metode melakukan blade wash untuk membersihkan carbon deposit pada kompresor dan roda turbin. Berdasarkan hasil penelitian sebelum dilakukan pencucian sudu daya turbin hanya mencapai 255.37621 MW, setelah dilakukan pencucian sudu mampu membuat kompresor bekerja lebih handal, menghasilkan efisiensi gas turbin yang baik, dan mampu mengurangi gangguan kinerja gas turbin akibat jam kerja turbin. daya yang dihasilkan mencapai 268, 77738 MW, terdapat penghematan konsumsi bahan bakar sebesar 1, 4 kg/s dan efisiensi panas sebesar 0, 8%. Pencucian online dilakukan pada kondisi beban 200MW ±5MW Untuk membersihkan fouling dan menjaga kinerja turbin. Kebersihan sudu kompresor dan turbin dapat dijaga dengan melakukan pencucian sudu ini berdasarkan jadwal periodik yang dihitung berdasarkan running hours.[1]
    Date: 2023–01–09
  34. By: Hur, Sun Kyung (Korea Institute for Industrial Economics and Trade)
    Abstract: The impact of environmental protection and climate change policies on trade is increasing. This trend is international, and carries important implications for Korean manufacturing, which is highly dependent on trade. There exists a a pressing need to preemptively identify the impact of environmental TBT in major countries on the exports of Korean manufacturing industries in order to strengthen the competitiveness of domestic industries and prepare countermeasures. Against this backdrop, this paper analyzes the impact of environmental TBT on Korea’s exports through empirical analysis and identifies implications for policy.
    Keywords: technical barriers to trade; TBT; FTA; free trade agreements; trade; protectionism; trade protectionism; free trade; Korea; trade policy; competition policy; environmental policy
    JEL: F18
    Date: 2022–08–01
  35. By: Mayer, Maximilian
    Abstract: This paper studies the role of social connections in shaping individuals' concerns about climate change. I combine granular climate data, region-level social network data and survey responses for 24 European countries in order to document large information spillovers. Individuals become more concerned about climate change when their geographically distant friends living in sociallyconnected regions have experienced large increases in temperatures since 1990. Exploring the heterogeneity of the spillover effects, I uncover that the learning via social networks plays a central role. Further, results illustrate the important role of social values and economic preferences for understanding how information spillovers affect individual concerns.
    Keywords: beliefs, climate change, information spillovers, social networks
    JEL: D01 D62 D64 D8 Q5
    Date: 2023
  36. By: Lucas J. Conwell; Fabian Eckert; Ahmed Mushfiq Mobarak
    Abstract: We propose a theory-inspired measure of the accessibility of a city's center: the size of the surrounding area from which it can be reached within a specific time. Using publicly available optimal-routing software, we compute these "accessibility zones" for the 109 largest US and European cities, separately for cars and public transit commutes. Compared with European cities, US cities are half as accessible via public transit and twice as accessible via cars. Car accessibility zones are always larger than public transit zones, making US cities more accessible overall. However, US cities' car orientation comes at the cost of less green space, more congestion, and worse health and pollution externalities.
    JEL: Q5 R0 R4
    Date: 2023–01
  37. By: Nam, Sanguk (Korea Institute for Industrial Economics and Trade)
    Abstract: Global interest in Environmental, Social, and Governance (ESG) standards has increased. This has stimulated the introduction of new environmental policies in a major economic sector including the shipping industry. The double hull regulation has been evaluated as one of most effective regulations in the maritime shipping industry. The prohibition of risky, single-hulled oil tankers has affected related industries, including the shipping, shipbuilding, and ship scrapping sectors. In particular, the double hull regulation could have a substantial impact on shipping and shipbuilding-related Korean industries and ecosystems, as Korea ranks first globally in shipbuilding and seventh in shipping. This paper estimates the impact of the double hull regulation on the ship scrapping market through survival analysis.
    Keywords: shipbuilding industry; shipbuilding; ship scrapping; ESG; maritime industry; maritime shipping; shipping; shipping regulation; maritime policy
    JEL: L62
    Date: 2022–01–01
  38. By: Ayanda Deliwe (Nelson Mandela University: Faculty of Business and Economic Sciences, South Africa. Author-2-Name: Norman Kutama Author-2-Workplace-Name: Nelson Mandela University, University Way, Summerstrand, 6019, Port Elizabeth, South Africa Author-3-Name: Author-3-Workplace-Name: Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:)
    Abstract: "Objective - This research paper aims to use the 6Ps of societal marketing to investigate consumer awareness of green products in Polokwane, South Africa. The aim of this paper was to create consumer awareness of green products using the 6Ps of societal marketing. The main objectives of this study included conducting a literature review on the 6Ps of societal marketing, empirically investigating the consumer awareness of green products using the 6Ps of societal marketing, and providing recommendations to businesses on how they can improve the awareness of green products. Methodology/Technique - A quantitative approach was followed in this study, where the empirical investigation was carried out using a self-administered questionnaire. Primary data were collected from 410 respondents to understand their awareness of green products. Findings – The 6Ps of societal marketing were used to construct a questionnaire distributed online using different social media platforms. The findings indicate consumers' experiences with green products relative to the 6Ps of societal marketing. There is a concern that some consumers are unaware of green products and that green products are not easily accessible and are expensive. Novelty - The study makes practical recommendations to marketers on how they can improve the awareness of green products while considering the concept of societal marketing. Type of Paper: Empirical "
    Keywords: Consumer awareness, green products, societal marketing, 6Ps.
    JEL: M31 M39
    Date: 2022–12–31
  39. By: -
    Abstract: Science, technology and innovation (STI) policies have a central role to play: not only in building national research and development capacities, but also in solving national problems and challenges within the framework of countries’ development policies. Given the region’s structural weaknesses, scarce resources and the need for scale to achieve results, the resources allocated to support science, technology and innovation —or at least part of them— must be channelled into areas of knowledge related to the main challenges the countries face. STI must contribute to the development of sectors and activities that drive the economy and society. Four of them are discussed in this publication: manufacturing industry for the health sector, energy transition, electromobility, and eco-innovation and sustainable production.
    Date: 2023–01–24
  40. By: Chen, Liang; Dolado, Juan José; Gonzalo Muñoz, Jesus; Ramos Ramirez, Andrey David
    Abstract: Global warming is a non-uniform process across space and time. This opens the door to a heterogeneous relationship between CO2 and temperature that needs to be analyzed going beyond the standard analysis based on mean temperature found in the literature. We revisit this topic through the lenses of a new class of factor models for high-dimensional paneldata, labeled Quantile Factor Models (QFM). This technique extracts quantile-dependent factors from the distributions of temperature across a wide range of stable weather stations in the Northern and Southern Hemispheres over 1959-2018. In particular, we test whether the (detrended) growth rate of CO2 concentrations help predict the underlying factors of the different quantiles of the distribution of (detrended) temperature in the time dimension. We document that predictive association is greater at the lower and medium quantiles thanat the upper quantiles and provide some conjectures about what could be behind this nonuniformity. These findings complement recent results in the literature documenting steeper trends in lower temperature levels than in other parts of the spatial distribution.
    Keywords: Global Warming; Co2 Concentrations; Quantile Factor Models; Predictive Association
    JEL: C31 C33 Q54
    Date: 2023–02–02
  41. By: Frondel, Manuel; Hansteen, Sven; Krieg, Marielena; Schmidt, Christoph M.
    Abstract: Der starke Anstieg der Energiepreise, der bereits im Jahr 2021 begann, und der russische Angriff auf die Ukraine im Februar 2022 haben die Sicherheit der Energieversorgung Europas in den öffentlichen und politischen Fokus gerückt. Dieser Beitrag quantifiziert vor diesem Hintergrund die spezifischen Risiken Deutschlands bei der Versorgung mit Erdöl, Steinkohle und Erdgas vor Russlands Angriff auf die Ukraine sowie das gesamte Energieversorgungsrisiko Deutschlands und ordnet es durch einen Vergleich mit dem der übrigen G7-Staaten ein. Im Ergebnis zeigt sich, dass das Risiko der Versorgung mit Energie dem von Frondel und Schmidt (2009) konzipierten Indikator zur Messung der langfristigen Energieversorgungssicherheit zufolge seit dem Ende der 1970er-Jahre stark gestiegen ist. Dies geht vor allem auf die massive Zunahme der Rohöl-, Steinkohle- und Erdgasimporte aus Russland bei einem gleichzeitigen Rückgang der heimischen Anteile an der Versorgung mit Erdöl, Steinkohle und Erdgas zurück. Der Beitrag illustriert, wie eine stärkere Diversifizierung der Importe von Energierohstoffen nach Bezugsländern sowie hinsichtlich der Energierohstoffe und -technologien die Versorgungssicherheit mit Energie erhöhen könnte.
    Keywords: Versorgungssicherheit, Diversifizierung
    JEL: C43 Q41
    Date: 2023
  42. By: Antxon Olabe Egaña
    Abstract: En la presente nota se aportan los datos sobre cómo ha evolucionado en años recientes dicha transición, situándola en el marco de referencia europeo e internacional en el que cobra todo su sentido.

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