nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒03‒06
34 papers chosen by
Roger Fouquet
London School of Economics

  1. Second-Round Effects of Oil Price Shocks -- Implications for Europe’s Inflation Outlook By Chikako Baba; Mr. Jaewoo Lee
  2. Oil Extraction and Gender Equality for Social Equity: The Role of Corporate Social Responsibility in Nigeria’s Coastal Communities By Joseph I. Uduji; Elda N. Okolo-Obasi; Simplice A. Asongu
  3. Analysis of the Impact of Orthogonalized Brent Oil Price Shocks on the Returns of Dependent Industries in Times of the Russian War By Tim Friedhoff; Cam-Duc Au; Philippe Krahnhof
  4. Asymmetries in the oil market: Accounting for the growing role of China through quantile regressions By Valérie Mignon; Jamel Saadaoui
  5. What may future electricity markets look like? By Pierre Pinson
  6. Toward a green economy: the role of central bank’s asset purchases By Ferrari, Alessandro; Landi, Valerio Nispi
  7. Reducing socio-spatial inequalities through a multi-sectoral approach to fuel poverty in local public action By Marie-Clotilde Meillerand; Jean-Pierre Nicolas
  8. Gemeinsam Gas einsparen: Warum die Bundesregierung weitere Empfehlungen der ExpertInnenkommission Gas und Wärme aufgreifen sollte? By Behr, Sophie M.; Kucuk, Merve; Neuhoff, Karsten
  9. The economics of carbon leakage mitigation policies By Ambec, Stefan; Esposito, Federico; Pacelli, Antonia
  10. Building a climate resilient power sector in the context of the Caribbean small island developing States’ energy transition. Policy Brief By -
  11. Estimating the participation value of electricity demand-response programmes for a two-stage production system. By Zhang, Yunrong; Glock, Christoph H.; Chen, Zhixiang
  12. The private and external costs of Germany’s nuclear phase-out By Jarvis, Stephen; Deschenes, Olivier; Jha, Akshaya
  13. Is Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default Swaps By Ugolini, Andrea; Reboredo, Juan Carlos; Ojea-Ferreiro, Javier
  14. Machine Learning in Building Documentation (ML-BAU-DOK) - Foundations for Information Extraction for Energy Efficiency and Life Cycle Analysis By Jonathan Rothenbusch; Konstantin Schütz; Feibai Huang; Björn-Martin Kurzrock
  15. By Sail Said
  16. Bitcoin Mining Meets Wall Street: A Study of Publicly Traded Crypto Mining Companies By Hanna Halaburda; David Yermack
  17. Aviation and the EU ETS: an overview and a data-driven approach for carbon price prediction By Riccardo Colantuono; Riccardo Colantuono; Massimiliano Mazzanti; Michele Pinelli
  18. Where Is the Carbon Premium? Global Performance of Green and Brown Stock By Michael D. Bauer; Daniel Huber; Glenn D. Rudebusch; Ole Wilms
  19. Cross-Country Survey on the Decommissioning of Commercial Nuclear Reactors: Status, Insights and Knowledge Gaps By Bärenbold, Rebekka; Bah, Muhammad Maladoh; Lordan-Perret, Rebecca; Steigerwald, Björn; von Hirschhausen, Christian; Wealer, Ben; Weigt, Hannes; Wimmers, Alexander
  20. Measuring distortions in international markets: Below-market energy inputs By OECD
  21. Deutsche Haushalte schauen zu optimistisch auf Energiekosten und zu pessimistisch auf Hilfen der Bundesregierung By Lingens, Jörg; Werthschulte, Madeline
  22. Can the acceptance of a carbon tax be increased?. The effect of tax revenue recycling and redistribution among households and companies By Anders Dugstad; Kristine M. Grimsrud; Henrik Lindhjem
  23. A quantification of how much crypto-miners are driving up the wholesale cost of energy in Texas By Jangho Lee; Lily Wu; Andrew E. Dessler
  24. Green bonds: Shades of green and brown By Immel, Moritz; Hachenberg, Britta; Kiesel, Florian; Schiereck, Dirk
  25. Distorted Innovation: Does the Market Get the Direction of Technology Right? By Daron Acemoglu
  26. Modeling of the German residential building stock as a basis for the simulation of the energetic and economic transformation process By Dennis Aldenhoff; Björn-Martin Kurzrock
  27. The Underestimated Global Warming Potential of refrigerant losses in Retail Real Estate: The impact of CO2 vs. CO2e By Julia Wein; Chiara Künzle; Sven Bienert
  28. Drivers for Energy-as-a-service (EaaS) business model – Property sector perspective By Harsha Muthumala; Chris Eves; Dulani Halvitigala; David Oswald
  29. Rare Earth Elements: A game between China and the rest of the world By Behnaz Minooei Fard; Willi Semmler; Giovanni Di Bartolomeo
  30. Climate Change and Energy Security: The Dilemma or Opportunity of the Century? By Mr. Serhan Cevik
  31. Sustainable modernization concepts with energy management system for existing residential districts – synergies of a cross-technology and cross-building approach By Dennis Aldenhoff; Dominik Jonik; Björn-Martin Kurzrock
  32. Shop Until You Drop: the Unexpected Effects of Anticonsumerism and Environmentalism By Maccarrone, Giovanni; Marini, Marco A.; Tarola, Ornella
  33. Disparities in pollution capitalization rates: the role of direct and systemic discrimination By Zivin, Joshua Graff; Singer, Gregor
  34. Financial technology and human development in Africa: The moderating impact of energy poverty By Rilwan Sakariyahu; Fatima Oyebola Etudaiye-Muhtar; Rodiat Lawal; Olayinka Oyekola

  1. By: Chikako Baba; Mr. Jaewoo Lee
    Abstract: The pass-through effects of oil price shocks on wage and consumer price inflation vary with the states or structural characteristics of an economy. The effects have declined over time in Europe and been higher in emerging European economies than in advanced economies. The pass-through to wages is found to have been higher when the prevailing level of inflation was higher or when the degrees of unionization and centralized bargaining were higher, while lower under a higher credibility of monetary policy. The effects of oil price shocks on core inflation and inflation expectations are consistent with their effects on wages.
    Keywords: Second-round effects; oil prices; wages; inflation; pass-through; monetary policy; impulse response.; oil price shock; inflation expectation; pass-through effect; oil price inflation; consumer price inflation; Unemployment rate; Nominal effective exchange rate; Europe; Global
    Date: 2022–09–09
  2. By: Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: We examine the impact of multinational oil companies’ (MOCs) corporate social responsibility (CSR) on gender equality for social equity using a combined propensity score matching and logit model. The result indicates a significant relationship between CSR and gender equality for social equity in coastal communities of Nigeria’s oil producing region. This implies that CSR of MOCs is a critical factor for promoting equal opportunity, equal access, equal treatment, equal sharing and division of resources. The finding suggest for improved CSR investment of MOCs on empowering the women in coastal communities in taking up alternative livelihoods from conservation and marine resources.
    Keywords: Oil extraction; Gender equality; Social equity; Corporate social responsibility; Coastal communities; sub-Saharan Africa
    Date: 2023–01
  3. By: Tim Friedhoff (Masaryk University, Faculty of Economics and Administration, Department of Finance); Cam-Duc Au (Masaryk University, Faculty of Economics and Administration, Department of Finance); Philippe Krahnhof (Isf – Institute for Strategic Finance of FOM Hochschule)
    Abstract: It has already been literarily proven that the past shows a statistical correlation between crude oil prices and certain industries that are influenced by its volatility. In this context, the Russian war in particular leads to reassessable reactions of these industries. In this paper, we investigate this influence during the war period and compare the results with pre-war calculations for 533 companies from 12 industries. Therefore, we use a recursive SVAR model, based on which we illustrate our results graphically with the impulse-response function. We find that the shock responses of industries to Brent volatilities during the war period have a high explanatory power, but we find different results for the individual industries. While oil-producing industries react positively to positive shocks (more so during the war period), the impact on oil-producing industries is rather small, but negative. Oil & Gas Drilling shows an increase of 10% and Tires & Rubber Products a decrease of 8%. Also other industries show surprising results.
    Keywords: Oil price shock, Oil industries, SVAR model, Impulse response function
    JEL: C22 Q11
    Date: 2023–02
  4. By: Valérie Mignon; Jamel Saadaoui
    Abstract: This paper investigates the role of political tensions between the US and China and global market forces in explaining oil price fluctuations. To this end, we rely on quantile regressions—quantile autoregressive distributed lag (QARDL) error-correction model—to account for possible asymmetric effects of those determinants, depending on both the level of oil prices and the period. Our results show evidence of a quantile-dependent long-term relationship between oil prices and their determinants over the 1958-2022 period, with an exacerbated effect of US-China political tensions in times of high oil prices. Furthermore, this quantile-dependent cointegrating relationship is time-varying across quantiles, highlighting the increased role played by China in the oil market since the mid-2000s.
    Keywords: Oil prices, political tensions, quantile regressions
    JEL: Q41 F51 C22
    Date: 2023
  5. By: Pierre Pinson
    Abstract: Should the organization, design and functioning of electricity markets be taken for granted? Definitely not. While decades of evolution of electricity markets in countries that committed early to restructure their electric power sector made us believe that we may have found the right and future-proof model, the substantially and rapidly evolving context of our power and energy systems is challenging this idea in many ways. Actually, that situation brings both challenges and opportunities. Challenges include accommodation of renewable energy generation, decentralization and support to investment, while opportunities are mainly that advances in technical and social sciences provide with many more options in terms of future market design. We here take a holistic point of view, by trying to understand where we are coming from with electricity markets and where we may be going. Future electricity markets should be made fit for purpose by considering them as a way to organize and operate a socio-techno-economic system.
    Date: 2023–02
  6. By: Ferrari, Alessandro; Landi, Valerio Nispi
    Abstract: We use a DSGE model to study the effectiveness of green-asset purchases by the central bank (Green QE), along the transition to a carbon-free economy driven by an emission tax, abstracting from price stability considerations. We find that Green QE helps to further reduce emissions, especially in the early stage of the transition. We find that a crucial parameter to determine the effectiveness of Green QE is the elasticity of substitution between the brown and the green good: the higher the elasticity the stronger the impact of the policy on emissions. JEL Classification: E52, E58, Q54
    Keywords: central bank, climate change, monetary policy, quantitative easing
    Date: 2023–02
  7. By: Marie-Clotilde Meillerand (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Jean-Pierre Nicolas (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique)
    Abstract: Pour illustrer le rôle des acteurs de l'urbanisme et de l'aménagement dans la réduction des inégalités sociospatiales liées à la transition énergétique, nous proposons d'explorer l'exemple de la double précarité énergétique croisant les enjeux de logement et de mobilité quotidienne. Depuis le début des années 2010, notamment à la suite du Grenelle de l'environnement, les politiques territoriales ont entamé des réflexions en termes de planification pour endiguer ce phénomène, et les acteurs des territoires ont expérimenté et testé des outils pour gérer l'urgence des situations des ménages les plus en difficulté, touchés par une spirale impliquant logement, santé, mobilité, accès à l'emploi et exclusion sociale. L'article prend appui sur une recherche menée dans six territoires de la Région Auvergne-Rhône-Alpes.
    Keywords: Inégalités sociospatiales, Précarité énergétique, Réduction de la précarité énergétique, Urbanisme et aménagement, Planification, Logement, Énergie, Transport, Mobilité, Action publique locale, Étalement urbain
    Date: 2022
  8. By: Behr, Sophie M.; Kucuk, Merve; Neuhoff, Karsten
    Date: 2023
  9. By: Ambec, Stefan; Esposito, Federico; Pacelli, Antonia
    Abstract: Carbon leakage occurs when carbon-priced low-emission domestic products are replaced with high-emissions foreign products. In a trade model with endogenous emissions abatement, we investigate the impact of three policies aimed at mitigating carbon leakage: free emission allowances, Carbon Border Adjustment Mechanism (CBAM) and export rebates. Providing allowances for free does not alter the incentives to abate carbon emissions, but fosters the entry of more carbon intensive producers. It levels the “playing field” both domestically and internationally, and may even reverse the carbon leakage. In contrast, the CBAM levels the playing field only domestically, which may lead to an autarky equilibrium. To reverse the carbon leakage, the CBAM should be complemented with other policies, such as export rebates. The optimality of these policies depends on the geographical scope of carbon emissions. With trade-adjusted emissions, the CBAM is always welfare enhancing, while free allowances alone are not. We then formally characterize the optimal combination of the three policies. Lastly, we calibrate the model to simulate the effects of the CBAM recently proposed by the European Union. The policy, when accompanied with either free allowances or export rebates, reverses the carbon leakage in the cement and steel sectors, and increases welfare in almost all sectors.
    Keywords: Carbon pricing; trade; carbon leakage; CBAM, free allowances; export rebates
    JEL: F13 F18 H23 Q52 Q54 Q58
    Date: 2023–02–03
  10. By: -
    Abstract: In Caribbean small island developing States (SIDS), electrical power outages are frequent in the aftermath of major weather events. While local service disruptions often last a few days after these events, nationwide power grid failures lasting several weeks, or months have resulted in enormous social and economic impacts. In 2017, Hurricane Maria left 90 per cent of the population of Dominica without access to electricity for over four months (Commonwealth of Dominica, 2020) and caused a systemwide collapse of Puerto Rico's power grid that took 11 months to be entirely restored (Campbell, 2018) (see map 1). In 2022, Puerto Rico was again left in the dark for several weeks after Hurricane Fiona's landfall (Lakhani, 2022). These events highlight the vulnerabilities of the subregion's power sector and demonstrate the lasting, compounding, and increasingly frequent impacts of extreme climate disasters in Caribbean SIDS.
    Date: 2022–12–15
  11. By: Zhang, Yunrong; Glock, Christoph H.; Chen, Zhixiang
    Date: 2023–01–26
  12. By: Jarvis, Stephen; Deschenes, Olivier; Jha, Akshaya
    Abstract: Many countries have phased out nuclear power in response to concerns about nuclear waste and the risk of nuclear accidents. This paper examines the shutdown of more than half of the nuclear production capacity in Germany after the Fukushima accident in 2011. We use hourly data on power plant operations and a machine learning approach to estimate the impacts of the phase-out policy. We find that reductions in nuclear electricity production were offset primarily by increases in coal-fired production and net electricity imports. Our estimates of the social cost of the phase-out range from €3 to €8 billion per year. The majority of this cost comes from the increased mortality risk associated with exposure to the local air pollution emitted when burning fossil fuels. Policymakers would have to significantly overestimate the risk or cost of a nuclear accident to conclude that the benefits of the phase-out exceed its social costs. We discuss the likely role of behavioral biases in this setting, and highlight the importance of ensuring that policymakers and the public are informed about the health effects of local air pollution.
    JEL: C53 Q41 Q53
    Date: 2022–06–14
  13. By: Ugolini, Andrea; Reboredo, Juan Carlos; Ojea-Ferreiro, Javier
    Abstract: We study whether climate transition risk is reflected in the credit default swap (CDS) spreads of firms. Using information on the vulnerability of a firm’s value to the transition to a low carbon economy, we construct a climate transition risk (CTR) factor, and document how this factor shifts the term structure of the CDS spreads of more vulnerable firms but not of less vulnerable firms. Considering the impact of different climate transition policies on the CTR factor, we find that they have asymmetric and significant economic impacts on the credit risk of more vulnerable firms, and negligible effects on the remaining firms.
    Keywords: Financial Economics, Resource /Energy Economics and Policy, Risk and Uncertainty
    Date: 2023–02–22
  14. By: Jonathan Rothenbusch; Konstantin Schütz; Feibai Huang; Björn-Martin Kurzrock
    Abstract: The construction and real estate industry features long product life cycles, a wide range of stakeholders and a high information density. Information is not only available in large quantities, but also in a very heterogeneous and user-specific manner. Digital building documentation is partially available in some companies and even non-existent in others. The result is often analogue, unstructured building documentation, which makes the processing of data and information considerably more difficult and, in the worst case, leads to media disruptions between those involved.However, the benefits of a lean, complete and targeted digital building documentation can be manifold. In particular, automated information extraction and further information retrieval are seen as having great potential. Information extraction as an ultimate aim, requires a defined handling of analogue documents, transparent criteria regarding data quality and machine readability as well as a clear classification system.The research project ML-BAU-DOK (funded by The Federal Office for Building and Regional Planning BBSR, SWD- presents the necessary preparatory processes for advanced digital use of building documentation. First, a set of rules is created to digitize paper-based documentation in a targeted manner. The automated separation of mass documentation into individual documents, as well as the classification of documents into selected document classes, is mapped using machine-learning. The document classes are consolidated from the current worldwide class standards and prioritized according to their information content. The project includes the evaluation of 600, 000 document pages, which are analysed class-specifically with regard to two use cases, energy efficiency and life cycle analysis. The methodology ensures transferability of the results to other use cases.The key result of the ML-BAU-DOK is an algorithm that automatically separates individual documents from a mass scan, assigns the individual documents to defined document classes, and thus reduces the amount of scanning and filing required. This leads to a classification system that enables information extraction as a subsequent goal and brings the construction and real estate industry closer to a Common Data Environment.
    Keywords: Document Classification; Document Separation; Heterogeneous Building Documentation; Machine Learning
    JEL: R3
    Date: 2022–01–01
  15. By: Sail Said (University of Algiers 3 : Université d' Alger 3)
    Abstract: The aim of this research is to discover the reality of Euro-Mediterranean cooperation in the field of fossil and renewable energies, And to accomplish this study, we adopted a scientific methodology that focuses on the use of the descriptive and analytical approaches.We have reached the conclusion That, the development of renewable energy, is still below the level of cooperation reached by the two parties in fossil energy.
    Keywords: renewable energy mena region Solar energy wind energy development. JEL classifications codes : Q2 Q3 Q4 Q5 Q56 P28, renewable energy, mena region, Solar energy, wind energy, development. JEL classifications codes : Q2, Q3, Q4, Q5, Q56, P28
    Date: 2022–12–04
  16. By: Hanna Halaburda; David Yermack
    Abstract: This paper studies the operations and financial valuations of 13 cryptocurrency mining companies that are listed on the NASDAQ stock exchange and have facilities in North America. We find that miners using Texas wind power are offline more than other miners, in a more erratic pattern, while receiving significant revenue augmentations from “curtailment” payments by electric utilities. Despite having relatively low activity levels, these Texas miners are more profitable than those using more stable sources of energy such as hyrdo power or solar power, as reflected in significantly higher enterprise values. We find a negative and significant beta between crypto mining stocks and an index of electric utilities, suggesting that ownership of a crypto mining company might provide a useful channel for risk management in the electric power industry.
    JEL: G23 L23 L94
    Date: 2023–02
  17. By: Riccardo Colantuono (Department of Sciences, Technology and Society, Scuola Universitaria Superiore IUSS Pavia, Pavia, Italy); Riccardo Colantuono (Department of Engineering, University of Ferrara, Ferrara, Italy); Massimiliano Mazzanti (Department of Economics and Management, University of Ferrara, Ferrara, Italy); Michele Pinelli (Department of Engineering, University of Ferrara, Ferrara, Italy)
    Abstract: Aviation is generally recognized as one of the most carbon intensive forms of transport. The sector accounts for roughly 2.5% of global CO2 emissions (which would place it as a top-10 emitter if ranked as a country), but this absolute value is of less concern than its accelerated and continuous growth in the last decades. In order to tackle aviation’s environmental impact, in 2012 the sector has been (partially) included in the European Union Emission Trading System (EU ETS), a market-based mitigation mechanism designed to put a price on carbon emissions and create an economic incentive towards their reduction. In the recently announced Fit for 55 legislative package, proposed by the European Commission in order to reach its medium-term environmental objective (a 55% reduction of greenhouse gases emissions by 2030 compared to 1990 levels), a revision of the system is envisaged, reinforcing the rules concerning aviation and making emission mitigation through the system more and more costly in the upcoming years. In light of this, the need for a predictive model to forecast the carbon price is of main importance. Several studies in the literature faced the problem of finding a reliable predictive model for the carbon price, but no one seems to completely satisfy the scientific community, mainly for the complexity of the algorithms and their poor predictive reliability. In this work, after an introductory section exploring the history and the characteristics of aviation’s inclusion in the EU ETS, a literature review of the studies investigating the topic has been carried out. Then, a simple data-driven methodology has been developed by using the dynamic mode decomposition (DMD) algorithm. For this purpose, a freely available set of data containing the daily carbon price since 2015 has been used. The main advantage of this approach is its simplicity and its ability to catch the non-linear dynamics of the phenomena. The presented strategy could inform policy makers at European level and help the industrial and financial sectors in the prediction of the carbon price by using a simple methodology.
    Keywords: Emission trading scheme
    Date: 2023–02
  18. By: Michael D. Bauer; Daniel Huber; Glenn D. Rudebusch; Ole Wilms
    Abstract: The relative equity pricing of more climate-friendly (“green”) versus less climate-friendly (“brown”) companies is an open question in climate finance. Previous research comes to conflicting conclusions, documenting either a “carbon premium” with brown stocks yielding higher returns, or the opposite, with green stocks outperforming brown. This paper provides new international evidence on this issue for a range of methodologies. Using carbon dioxide (CO2) emissions as reported by companies to measure their greenness, we document that green stocks across the G7 have generally provided higher returns than brown stocks for much of the past decade. We also try to reconcile our findings with previous work, and we provide some results for early 2022 that show that brown stocks outperformed green ones during the energy crisis.
    Keywords: climate risk, transition risk, carbon emissions, green stocks, brown stocks
    JEL: G11 G12 Q54
    Date: 2023
  19. By: Bärenbold, Rebekka (University of Basel); Bah, Muhammad Maladoh (University of Basel); Lordan-Perret, Rebecca (University of Basel); Steigerwald, Björn; von Hirschhausen, Christian; Wealer, Ben; Weigt, Hannes (University of Basel); Wimmers, Alexander
    Abstract: In this survey paper, we bring together the insights from six country case studies on decommissioning commercial nuclear power plants (NPPs). Nuclear decommissioning has often been overlooked in past literature but will gain relevance in future research as more and more NPPs reach the ends of their respective lifetimes. The six countries we selected for our research have commercial nuclear industries that span a wide spectrum in terms of organization, regulation, financial provisions, and production of decommissioning services. Based on the cross comparison of countries and their approaches to decommissioning, we highlight a series of gaps in the existing research that we and other researchers should fill in order to derive best practices for the commercial decommissioning industry.
    Keywords: nuclear decommissioning, survey, research gaps
    Date: 2023–01–31
  20. By: OECD
    Abstract: Government support for industrial firms can come in many different forms and through a range of channels, varying in complexity. A particularly challenging form of support is energy inputs offered to industrial producers at below-market prices. To improve understanding about the scope and scale of such support, this report examines an illustrative sample of 33 companies and their subsidiaries operating in energy-intensive industries, namely aluminium smelting, steelmaking, chemicals (including fertilisers), and cement. Most of the energy subsidies identified appear to concern the provision of natural gas and electricity at below-market rates, resulting in an average subsidy of USD 0.4-1.3 per million British thermal units and USD 0.02-0.03 per kWh, respectively, over the period 2010-20. In some cases, estimates indicate that subsidies are a multiple of firms’ energy costs, suggesting a sizable impact on firms’ profits and operating margins. The results have important policy implications for efforts to better discipline industrial subsidies in the WTO and elsewhere, notably in relation to how to ensure policy transparency in a context where large energy providers tend to be majority owned by governments.
    Keywords: Electricity, Fossil Fuels, Natural gas, State enterprises, Subsidies, Trade
    JEL: F13 F23 H25 L52 L60 L94 O25 Q41
    Date: 2023–02–15
  21. By: Lingens, Jörg; Werthschulte, Madeline
    Abstract: Der russische Angriffskrieg auf die Ukraine hat nicht nur direktes Leid verursacht, sondern auch die europäischen Energiemärkte beeinträchtigt. Die Kostenexplosionen sowohl im Gas- als auch im Strommarkt stellen eine massive Belastung der Verbraucherinnen und Verbraucher in Deutschland dar. Die Großhandelspreise für Gas sind in der Spitze um 400%, für Strom um 200% gestiegen. Um diese Kostensteigerungen abzufangen, hat die Bundesregierung die Gas- und Strompreisbremse auf den Weg gebracht. Kern dieser ist die Kompensation der gestiegenen Kosten, ohne die Sparanreize höherer Preise zu verdrängen. Zur direkten Entlastung wurde weiterhin die Dezemberhilfe umgesetzt. Mit dieser Maßnahme wurde der Abschlag für Gasverbrauch im Monat Dezember bezahlt. Welche Erwartungen haben deutsche Haushalte bezüglich der gestiegenen Energiekosten, und wie werden die Maßnahmen der Bundesregierung eingeschätzt? Diese Fragen untersuchen Forschende von der Westfälischen-Wilhelms Universität Münster und dem ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung in Mannheim. Dazu wurden im November 2022 etwa 400 Kundinnen und Kunden des Stromvergleichsportals hinsichtlich ihrer Einschätzungen der Entwicklungen im Energiemarkt und ihrer geplanten Reaktionen befragt. Die Umfrage zeigt ein problematisches Gleichgewicht. Die befragten Haushalte unterschätzen die gestiegenen Kosten und werden somit möglicherweise ihren Energieverbrauch nicht ausreichend einschränken. Dieses Ergebnis ist insbesondere mit dem Einsparen von Gas als zentralen Baustein der Strategie der Bundesregierung sehr bedenklich. Auf der anderen Seite haben die Haushalte wenig Zutrauen in die Wirksamkeit der Maßnahmen der Bundesregierung.
    Date: 2023
  22. By: Anders Dugstad; Kristine M. Grimsrud (Statistics Norway); Henrik Lindhjem
    Abstract: Effective carbon taxation is essential to achieving the green transition. However, there is typically stiff opposition to carbon taxation due to perceived or actual adverse equity and other impacts. Hence, a better understanding of which factors, including the use of tax revenue, can increase acceptability is essential. To date, stated preference methods have rarely been used to analyse this issue and, when used, have focused only on households’ acceptance. We conduct two identical national choice experiment surveys of Norwegian households and companies, respectively, including carbon tax levels and associated emission reductions and different revenue recycling options as attributes. We find that acceptance for higher tax levels increases among both groups if revenue finances climate mitigation measures. There is some heterogeneity among the groups with regard to using revenue to reduce different dimensions of inequality. Simulating policy options, we find acceptance for the highest carbon tax among both groups when revenue is used both to finance climate mitigation measures and to reduce rural-urban inequalities. This policy option points to an acceptable carbon tax close to an estimated level necessary for reaching the most ambitious climate target set by the Norwegian government. An effective carbon tax level can potentially be achieved in Norway with modest efficiency costs to alleviate inequality.
    Keywords: Climate change; Carbon tax; Policy acceptance; Willingness to pay; Earmarking; Tax revenue
    JEL: H23 Q48 Q58 R48
    Date: 2023–01
  23. By: Jangho Lee; Lily Wu; Andrew E. Dessler
    Abstract: The use of energy by cryptocurrency mining comes not just with an environmental cost but also an economic one through increases in electricity prices for other consumers. Here we investigate the increase in wholesale price on Texas ERCOT grid due to energy consumption from cryptocurrency mining. For every GW of cryptocurrency mining load on the grid, we find that the wholesale price of electricity on the ERCOT grid increases by 2 per Cent. Given that todays cryptocurrency mining load on the ERCOT grid is around 1 GW, it suggests that wholesale prices have already risen this amount. There are 27 GW of mining load waiting to be hooked up to the ERCOT grid. If cryptocurrency mining increases rapidly, the price of energy in Texas could skyrocket.
    Date: 2023–02
  24. By: Immel, Moritz; Hachenberg, Britta; Kiesel, Florian; Schiereck, Dirk
    Date: 2022–11
  25. By: Daron Acemoglu
    Abstract: In the presence of markup differences, externalities and other social considerations, the equilibrium direction of innovation can be systematically distorted. This paper builds a simple model of endogenous technology, which generalizes existing comparative static results and characterizes potential distortions in the direction of innovation. I show that empirical findings across a number of different areas are consistent with this framework's predictions and I use data from several studies to estimate its key parameters. Combining these numbers with rough estimates of differential externalities and markups, I provide suggestive evidence that equilibrium distortions in the direction of technology can be substantial in the context of industrial automation, health care, and energy, and correcting these distortions could have sizable welfare benefits.
    JEL: C65 J23 J24 L65 O14 O31 O33
    Date: 2023–02
  26. By: Dennis Aldenhoff; Björn-Martin Kurzrock
    Abstract: Limited economic feasibility due to high investment costs and relatively small energy cost savings is seen as a major reason for low refurbishment rates of the building stock in many countries. Improving economic feasibility can therefore be essential to grow refurbishment rates. Carbon tax or funding grants are possible ways to achieve this. Furthermore, the cost-effectiveness of energy-efficient modernization depends on the necessity for refurbishment. If refurbishment measures are necessary, additional energy-efficient modernization can be carried out at comparatively low cost. Accordingly, modernizations are strongly dependent on the refurbishment cycle of the building. In order to achieve the intended climate targets for the building sector, it is therefore necessary to use refurbishment options for energy-efficient modernization as well. In addition, it must be taken into account that the younger the building is, the lower the potential for energy savings and thus the economic sense due to lower energy cost savings. The most challenging modernizations are all yet to come. As the refurbishment cycle is essential, the question arises as to how high the theoretical refurbishment rate is, how high it is effectively, and how high it must be to achieve the climate targets for the residential building stock. This paper aims to model the basis for the target-oriented transformation of the residential building stock, so that scenarios in line with climate goals for the residential building stock can be simulated depending on the necessary economic incentives. Using current statistics and the past development of the German residential building stock, central parameters like living space, new construction, deconstruction and the modernization rate are modeled endogenously. The modernization rate represents a full modernization and thus allows an easy connection of the model with energetic parameters for building classes defined in the European web database TABULA. The results are of relevance for modelling the building stock and deriving suitable modernization measures also in other countries.
    Keywords: climate goals; modernization rates; refurbishment cycle; residential building stock model
    JEL: R3
    Date: 2022–01–01
  27. By: Julia Wein; Chiara Künzle; Sven Bienert
    Abstract: The practice has shown that greenhouse gases other than CO2 have received far too little attention, even though they make a significant contribution to global warming. The paper focuses on the status quo of the so-called F-gases (expressed as CO2 equivalent / CO2e), which are used as coolants for air conditioning systems and industrial or commercial refrigeration. F-gases are still used today in the retail real estate sector, which have a more than 3, 000 times greater impact than CO2. From a technical point of view, the use of F-gases is not in itself harmful to the climate, as they are in a closed cycle. However, despite regular maintenance, leaks do occur during use, releasing harmful CO2e into the environment. Operators seem to have become aware of this problem and switch little by little to alternative coolants, but this is hardly an issue in the wider property market. Even leading benchmarking tools, such as GRESB, do not take F-gases into account. This can, under certain circumstances, massively distort the emission reduction targets of property owners.This paper aims to show the status quo of the food retail real estate market regarding F-Gas emissions in Germany. Furthermore, these results will point out to property owners what costs they should expect in the future and, under certain circumstances, how a so-called "stranding point" can be prevented. With the CRREM Risk Assessment Tool, various sample assets (German supermarkets) are evaluated in terms of their CO2 and CO2e emissions. Afterward, the results are compared and evaluated with the country- and asset-type-specific benchmarks of CRREM. As the last step, the influence of F-gases is considered in isolation, and recommendations for action are specified. Given the increasing regulations and the growing awareness of sustainability, especially an evaluation of the CO2e emissions is urgently needed. If this is ignored, the transitory risks of buildings will increase. Action is also required as physical risks such as heatwaves are steadily growing, driving the use of increasingly expensive refrigerants. If owners are not aware of these risks, they may face high costs.
    Keywords: carbon footprint; Co2; Operational carbon; Transition risk
    JEL: R3
    Date: 2022–01–01
  28. By: Harsha Muthumala; Chris Eves; Dulani Halvitigala; David Oswald
    Abstract: In a time of technological upheaval and energy decentralisation, Australian property sector is becoming more concerned about building energy needs and strategic about how to source energy services. Consequently, this has enabled energy service providers to offer innovative energy services and develop new business models. Energy-as-a-service (EaaS) as an emerging business model has shown potential under this complex energy transition. However, with limited studies into this business model, there is a research gap in determining what really drives such a business model. In addressing such a research gap, this paper investigates about drivers for EaaS from an industry perspective. More specifically considering property sector the paper focus to identify perspectives of customers of property sector and energy service providers representing EaaS. A generic qualitative research design within a constructivist paradigm was adopted in this exploratory study with twenty-nine semi-structured interviews. Thematic analysis resulted findings to be classified under four driver categories of: Financial, Organisational, Functional and Market. Empirical analysis revealed that financial drivers can both be connected to reduced energy expenses in buildings as well as increased revenues while similarities to performance risk transfer was highlighted beyond traditional energy contracting models. Sustainability concerns was emphasised as an organisational driver however with consequential challenges to service providers from much active and involved prosumer clients. This deviation was seen in market drivers as well where interviewees agreeing on the influence of digitalisation, decentralisation and decarbonisation for EaaS, however has resulted property sector customer to become a service provider of EaaS to building inhabitants. Although findings were in the context of property sector similar drivers was also seen for energy system transition, meaning EaaS applicability to energy system levels well.
    Keywords: Drivers; Energy-as-a-service; Property; Qualitative
    JEL: R3
    Date: 2022–01–01
  29. By: Behnaz Minooei Fard; Willi Semmler; Giovanni Di Bartolomeo
    Abstract: The economics of rare earth elements (REEs) has become a critical issue due to the growing demand for these crucial materials in the transition to renewable energies. The monopolistic structure of the REE market dominated by China and its unstable supply of REEs has raised concerns globally about potential supply chain disruptions. With the largest REE reserves and refining capacity, China exerts market power, causing supply chain problems and price volatility. However, China's growing consumption of REEs may exceed its domestic production and lose its control over the supply since other countries move into the market. This paper uses a game-theoretic stylization to examine competition between China and the rest of the world (ROW). We investigate how China uses a limit-pricing mechanism to prevent the entrance of fringe firms from the ROW and show how the ROW is limited to quantity adjustments. We also examine the market's transformation from a monopoly to a foreseeable duopoly. The focus is on the supply side of the market, the resource extraction by China and the ROW, and the depletion of the discovered resources. Additionally, we assess the role of the impact of marginal costs and supporting policies on these dynamics. Our model variants are solved numerically using the moving-horizon strategy in differential games provided by the non-linear model predictive control (NMPC) technique, allowing us to predict the outcome of the interaction between China and the ROW and the impact of their decision-making.
    Keywords: Rare earth elements; differential games; non-linear model predictive control
    JEL: C61 C7 Q3
    Date: 2023–02
  30. By: Mr. Serhan Cevik
    Abstract: This paper investigates the connection between climate change and energy security in Europe and provides empirical evidence that these issues are the two faces of the same coin. Using a panel of 39 countries in Europe over the period 1980–2019, the empirical analysis presented in this paper indicates that increasing the share of nuclear, renewables, and other non-hydrocarbon energy and improving energy efficiency could lead to a significant reduction in carbon emissions and improve energy security throughout Europe. Accordingly, policies and reforms aimed at shifting away from hydrocarbons and increasing energy efficiency in distribution and consumption are key to mitigating climate change, reducing energy dependence, and minimizing exposure to energy price volatility.
    Keywords: Climate change; energy security; carbon emissions; energy efficiency; Europe; transition economies; mitigating climate change; energy dependence; climate change adaptation; financing climate change mitigation; Greenhouse gas emissions; Energy conservation; Carbon tax; Global; Baltics
    Date: 2022–09–09
  31. By: Dennis Aldenhoff; Dominik Jonik; Björn-Martin Kurzrock
    Abstract: The EU and its member states have recognized that reducing CO2 emissions in buildings is a decisive task for achieving climate protection targets. With regard to Germany, only moderate progress is discernible, which is primarily reflected in low modernization rates and modernization concepts that ultimately miss their goals.A reason for this is that heat pumps, identified in many studies as the preferred and state-of-the-art heating technology, requires extensive modernization measures in existing buildings. This results in existing building owners usually opting for modernization variants that involve lower investment costs, which do not bring the necessary CO2 savings. But since these modernization concepts do not lead to the achievement of climate protection goals, repeated construction measures on the building become necessary, which exceed the previously saved investment costs. Therefore, more ambitious modernization concepts tend to be more cost-effective in the long term. The project ModEMS4Q, funded by the German Federal Ministry for Economic Affairs and Climate Protection, aims to improve economic feasibility of target-oriented modernization by generating synergies of a cross-technology and cross-building approach.ModEMS4Q looks at three distinct residential districts with single-family houses and multi-family houses which, due to their different building types and years of construction, each offer different conditions for concept development. An energy management system is central part of the modernization concepts and allows coupling with other consumers such as e-mobility. In addition to variations in the modernization of the building's thermal envelope, various supply concepts for the building's technical equipment are being considered, and the economic feasibility is being assessed. Key points of the concepts are the utilization of the local potential for renewables, the possibility for modular expansion of the concept to adjacent buildings and neighborhoods, and long-term climate neutrality.Depending on the local conditions, combinations of two concepts for the modernization of the thermal envelope, four variants for the heat supply and two financing models including potential expansion possibilities are examined and measured against reference concepts for each residential district.
    Keywords: Economic feasibility; Energetic refurbishments; Energy management system; Residential districts
    JEL: R3
    Date: 2022–01–01
  32. By: Maccarrone, Giovanni; Marini, Marco A.; Tarola, Ornella
    Abstract: In an economy where consumers are heterogeneous in their preferences over the hedonic and environmental attributes of goods on sale, we explore the effects of anti-consumerism and environmentalism. We show that when the environmental attributes of products come at the expense of the hedonic attributes, a higher supply of anti-consumerism and environmentalism yields the expected positive effect on the environment. In contrast, when hedonic and environmental attributes are jointly met by a good, higher levels of anti-consumerism and environmentalism negatively affect the society’s environmental footprint. Moreover, the impact of anti-consumerism and environmentalism on social welfare is far from being obvious, giving rise to unexpected redistributive effects between firms and consumers.
    Keywords: Environmental Economics and Policy, Institutional and Behavioral Economics
    Date: 2023–02–09
  33. By: Zivin, Joshua Graff; Singer, Gregor
    Abstract: We examine how exogenous changes in exposure to air pollution over the past two decades have altered the disparities in home values between Black and White homeowners. We find that air quality capitalization rates are significantly lower for Black homeowners. In fact, they are so much lower that, despite secular reductions in the Black-White pollution exposure gap, disparities in housing values have increased during this period. An exploration of mechanisms suggests that roughly one-quarter of this difference is the result of direct discrimination while the remaining three-quarters can be attributed to systemic discrimination through differential access to complementary amenities.
    Keywords: house prices; environmental justice; air pollution; race
    JEL: Q53 R31 J15
    Date: 2023–01–27
  34. By: Rilwan Sakariyahu (Business School, Edinburgh Napier University); Fatima Oyebola Etudaiye-Muhtar (Ilorin Business School, University of Ilorin); Rodiat Lawal (School of Finance and Management, SOAS University of London); Olayinka Oyekola (Department of Economics, University of Exeter)
    Abstract: Several studies in the academic literature have identified the critical role of financial technology (fintech) in improving socio-economic conditions of nations, measured by human development index (HDI). However, despite the efforts to increase HDI using fintech, the ranking of African countries on the index table remains low. Given that access to electricity is imperative for fintech, and fundamental to human development, we provide novel evidence by investigating the degree to which the prevailing energy poverty in Africa affects the success of fintech on human development on the continent. Employing a number of econometric techniques which include linear (OLS, Prais-Winsten), instrumental-variable (GMM) and non-linear (M-M Quantile) regression models, our empirical framework is robust to heteroscedasticity, endogeneity, and cross-sectional dependence among countries. Our results show that fintech has a significant positive impact on human development and the impact remains consistent irrespective of the estimation methods employed. However, when we split our sample based on regions and income classification proposed by the World Bank, our results show that the impact of fintech, when interacted with access to electricity, on human development is more pronounced in the upper-middle, high-income, Eastern, Central and Southern countries. The Western countries have not significantly benefitted from fintech adoption, perhaps because those countries fall in the low-income categories and have a high prevalence of energy challenge. In light of the current state of human development in Africa, our study advocates for more investment in energy infrastructure for the rapid realization of the gains of fintech.
    Keywords: fintech, human development, energy poverty, access to electricity, sub-Saharan Africa
    JEL: C22 O43 Q4 Q43 Q48 Q55
    Date: 2023–02–15

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