nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒03‒13
fifty-six papers chosen by
Roger Fouquet
London School of Economics

  1. Driving low-carbon innovations for climate neutrality By Chiara Criscuolo; Antoine Dechezleprêtre; Mario Cervantes
  2. Health and Economic Impact of Air Pollution in Delhi By Soumi Roy Chowdhury; Sanjib Pohit; Rishabh Singh
  3. Iraq: 2022 Article IV Consultation-Press Release; and Staff Report By International Monetary Fund
  4. Greenflation? By Olovsson, Conny; Vestin, David
  5. Regulatory barriers to climate action : Evidence from Conservation Areas in England By Fetzer, Thiemo
  6. Is the Green Transition Inflationary? By Marco Del Negro; Julian di Giovanni; Keshav Dogra
  7. The Economic Consequences of Effective Carbon Taxes By Felix Kapfhammer
  8. Chile: Technical Assistance Report-An Evaluation of Improved Tax Options By International Monetary Fund
  9. A Note on Cross-Panel Data Techniques By Zaman, Khalid
  11. International Commodity Prices Transmission to Consumer Prices in Africa By Thibault Lemaire; Paul Vertier
  12. The Green Metamorphosis of a small Open Economy By Florencia S. Airaudo; Evi Pappa; Hernán D. Seoane
  14. Can Pollution Markets Work in Developing Countries? Experimental Evidence from India By Greenstone, Michael; Rohini Pande; Sudarshan, Anant; Ryan, Nicholas
  15. Energy-efficient job shop scheduling considering processing speed and incentive-based programs. By Füchtenhans, M.; Glock, C.H.
  16. Spain: Selected Issues By International Monetary Fund
  17. Real estate as an investment hub within the built environment for sustainability in a circular economy By Chiemela Victor Amaechi
  18. How the green and digital transitions are reshaping the automotive ecosystem By Antoine Dechezleprêtre; Luis Díaz; Milenko Fadic; Guy Lalanne
  19. The Stumbling Block in ‘the Race of our Lives’: Transition-Critical Materials, Financial Risks and the NGFS Climate Scenarios By Hugh Miller; Simon Dikau; Romain Svartzman; Stéphane Dees
  20. The Impacts of the Tokyo and Saitama ETSs on the Energy Efficiency Performance of Manufacturing Facilities By LU Guanyu; TANAKA Kenta; ARIMURA Toshi H.
  21. Analysis of the Transmission of Carbon Tax using a Multi-Sector Dynamic Stochastic General Equilibrium Model By Kohei Matsumura; Tomomi Naka; Nao Sudo
  22. Low emission zones and traffic congestion: Evidence from Madrid Central By Filippo Tassinari
  23. A Greek Green Deal: building energy democracy and fighting energy poverty By Maniatis, Yannis; Doukas, Haris; Karagiannis, Emmanuel
  24. Market Power and Price Exposure- Learning from Changes in Renewable Energy Regulation By Natalia Fabra; Imelda
  25. The economic benefits of early green innovation: Evidence from the automotive sector By Alberto Agnelli; Hélia Costa; Damien Dussaux
  26. Local conditions for the decentralization of energy systems By Arvanitopoulos, Theodoros; Wilson, Charlie; Ferrini, Silvia
  27. Plus écologiques et plus heureux – la transition environnementale inégale des Français By Blanc, Corin
  28. A Friend in Need Is a Friend Indeed? Analysis of the Willingness to Share Self-Produced Electricity During a Long-lasting Power Outage By Kurz, Konstantin; Bock, Carolin; Knodt, Michèle; Stöckl, Anna
  29. Climate tech 2.0: social efficiency versus private returns By Giulio Cornelli; Jon Frost; Leonardo Gambacorta; Ouarda Merrouche
  30. Aktienmarktreaktionen auf die Emission von Green Bonds und die Pecking Order während der Covid-19-Pandemie By Zare, Fatemeh; Bahmer, Luis; Campuzano-Mojik, Lázaro; Schiereck, Dirk
  31. Routing of Battery Electric Heavy Duty-Trucks for Drayage Operations By Dessouky, Maged; Yao, Siyuan
  32. Science, technology and innovation for sustainable development: Lessons from the Caribbean’s energy transition By Walker, Laverne; de Paula, Jônatas
  33. Deutschlands Gasversorgung ein Jahr nach russischem Angriff auf Ukraine gesichert, kein weiterer Ausbau von LNG-Terminals nötig By Franziska Holz; Christian von Hirschhausen; Robin Sogalla; Lukas Barner; Björn Steigerwald; Claudia Kemfert
  34. The Art of Facade Gardening - A project to improve Air Quality in Inner Cities By Annelie Stumpp; Hermann Lebherz
  35. Smoothing Quantile Regression Averaging: A new approach to probabilistic forecasting of electricity prices By Bartosz Uniejewski
  36. Trade Policy Uncertainty, Offshoring, and the Environment: Evidence from US Manufacturing Establishments By Choi, Jaerim; Hyun, Jay; Kim, Gueyon; Park, Ziho
  37. Towards improved feasibility study of artificial light efficiency measure in buildings By Marco Castagna; Federico Garzia; Roberto Lollini
  38. Do Mandatory Energy Efficiency Upgrades Drive up Residential Rents? By Franz Fuerst
  39. Using smart lighting systems to reduce energy costs in warehouses: A simulation study. By Füchtenhans, M.; Glock, C.H.; Grosse, E.H.; Zanoni, S.
  40. Estimates of long-run energy savings and realization rates from a large energy efficiency retrofit program By Maya Papineau; Nicholas Rivers; Kareman Yassin
  41. On the Economics of Residential Solar PV: An Evaluation of Subsidies, Savings, and Benefits By Linde Kattenberg; Erdal Aydin; Dirk Brounen; Nils Kok
  42. Is Climate Transition Risk Priced into Corporate Credit Risk? Evidence from Credit Default Swaps By Andrea Ugolini; Juan C. Reboredo; Javier Ojea-Ferreiro
  43. Thermodynamik – grundlegende Einsichten für ein Verständnis von Umweltproblemen By Faber, Malte; Rudolf, Marco; Frick, Marc; Becker, Mi-Yong
  44. Does P2P Trading Favor Investments in PV-Battery Systems? By Francesca Andreolli; Chiara D'Alpaos; Peter Kort
  45. Cult Violence in Nigeria and Corporate Social Responsibility in Oil Producing Communities By Joseph I. Uduji; Elda N. Okolo-Obasi; Simplice A. Asongu
  46. Projecting CO2 emissions from the Swedish car fleet: comparing results of a model used by the European Commission and two national Swedish models By Pyddoke, Roger; Algers, Staffan
  47. The Need for Green Data Centers in Modern Society: Technology, Economy and Environmental Sustainability By Heikkinen, Daan
  48. Global Money Supply and Energy and Non-Energy Commodity Prices: A MS-TV-VAR Approach By Stefano Grassi; Francesco Ravazzolo; Joaquin Vespignani; Giorgio Vocalelli
  49. Does P2P Trading Favor Investments in PV-Battery Systems? By Andreolli, Francesca; D'Alpaos, Chiara; Kort, Peter
  50. Unbundling Eskom: How would a new distribution system impact on energy poverty By Nthabiseng MOHLAKOANA; Peta WOLPE
  51. Chile: Selected Issues By International Monetary Fund
  52. Understanding the Distributional Impacts of Increases in Fuel Prices on Poverty and Inequality in Paraguay By Canavire Bacarreza, Gustavo J.; de Ervin, Lyliana Gayoso; Galeano, Juan José; Baquero, Juan Pablo
  53. A Computable General Equilibrium Analysis of EU CBAM for the Japanese Economy By TAKEDA Shiro; ARIMURA Toshi H.
  54. 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
  55. Options for assessing and comparing climate change mitigation policies across countries By Mauro Pisu; Filippo Maria D’Arcangelo; Assia Elgouacem; Tobias Kruse; Yannick Hemmerlé
  56. Greening the Workforce: The Power of Investing in Human Capital By Aqib, Muhammad; Zaman, Khalid

  1. By: Chiara Criscuolo; Antoine Dechezleprêtre; Mario Cervantes
    Abstract: The transition to climate neutrality requires cost reductions in existing clean technologies to enable rapid deployment on a large scale, as well as the development of emerging technologies such as green hydrogen. This policy paper argues that science, technology, innovation, and industrial (STI&I) policies focusing on developing and deploying low-carbon technologies are crucial to achieving carbon neutrality. It notes however that the current level of innovation is insufficient to meet the net-zero challenge due to a policy emphasis on deployment rather than research and development (R&D) support. The paper explores the rationale for more ambitious STI&I policies targeted at R&D for climate neutrality and provides policy recommendations for an effective innovation policy for net-zero, including its interaction with the broader climate policy package.
    Keywords: climate change mitigation, innovation policy, low-carbon innovation, technological change
    JEL: O38 Q54 Q55 Q58
    Date: 2023–03–01
  2. By: Soumi Roy Chowdhury (The George Washington University, USA); Sanjib Pohit (National Council of Applied Economic Research); Rishabh Singh (JPAL, South Asia)
    Abstract: Many cities in urban India, particularly the metros, are major hotspots of air pollution with a PM 2.5 concentration level ranging above the permissible limits defined by the WHO for most of the year. Since the transport sector is a major source of air pollution in urban India, the Government of India adopted BS-VI emission standards in 2016 for all major on-road vehicle categories. The rollout of clean fuel (BS-VI) in India began in the capital city Delhi, the most polluted city of India. In this context, this paper attempts to analyse the economic cost of air pollution in the States of Delhi/Haryana through a primary survey of households in order to understand whether the introduction of clean fuel has reduced the pollution. While Delhi is our treatment group for this analysis, Haryana is our control group, as clean fuel was still not rolled out in the latter State when the primary survey was undertaken. We find a decreasing trend in the self-reported short and long-term health illnesses among respondents in Delhi while similar differences have not been noted in Narnaul, Haryana. Moreover, the cumulative economic cost of pollution from health expenditure, productivity loss, and contingent valuation is found to be lower in Delhi than in Haryana.
    Keywords: Air pollution, Delhi, Health and Economic Cost, Haryana, BS-VI fuel
    JEL: I18 Q51 Q52 Q53 Q58
    Date: 2023–02–03
  3. By: International Monetary Fund
    Abstract: Significant socio-economic fragilities continue to persist. The formation of a new government in October 2022 provides an opportunity to rekindle the reform momentum, which has been stalled for over a year amid political uncertainty. The economy has been gradually recovering, supported by strong oil revenues and accommodative policies. Inflation has been relatively contained as the pass-through from high global commodity prices has been muted by food and fuel subsidies. Despite fiscal and external current account surpluses, Iraq’s dependence on oil and vulnerability to future oil price volatility continued to increase.
    Date: 2023–02–03
  4. By: Olovsson, Conny (Research Department, Central Bank of Sweden); Vestin, David (Research Department, Central Bank of Sweden)
    Abstract: This paper examines the hypothesis of "Greenflation". We find that under flexible prices, the relative price adjustment of green and brown energy comes about without consequences for inflation. We extend the analysis to the case of sticky prices and wages and our findings continues to support the notion that a transition to a green economy may progress without too much worry about inflation, at least in the case where the fiscal measures are introduced in an orderly and well planned fashion.
    Keywords: Inflation; green transition; monetary policy; climate change
    JEL: E52 E58 Q43
    Date: 2023–02–01
  5. By: Fetzer, Thiemo (University of Warwick)
    Abstract: Preserving heritage is an important part of maintaining collective identity for future generations. Yet, in the context of the climate crisis, it is imperative to understand to what extent there is a tangible trade-off between conserving character vis-a-vis averting the worst of climate change – a much more existential threat to those future generations. Studying data for more than half of the English housing stock, I show that conservation area status – a special areabased designation to preserve the unique character of a neighborhood – not to be confused with preservation of historic buildings – in England may be responsible for up to 3.2 million tons of avoidable CO2 emissions annually. Using a suite of micro-econometric methods I show that properties in conservation areas have a notable worse energy efficiency; experience lower investment in retrofitting and consume notably higher levels of energy owing to poor energy efficiency. Effect sizes are very consistent comparing engineering based energ consumption estimates with actual consumption data. Effects can be directly attributed to planning requirements for otherwise permitted development that only apply to properties by virtue of them being located inside a conservation area.
    Keywords: energy efficiency ; climate crisis ; zoning ; climate adaptation JEL codes: Q54 ; Q55 ; R14 ; R48 ; N74
    Date: 2023
  6. By: Marco Del Negro; Julian di Giovanni; Keshav Dogra
    Abstract: Are policies aimed at fighting climate change inflationary? In a new staff report we use a simple model to argue that this does not have to be the case. The model suggests that climate policies do not force a central bank to tolerate higher inflation but may generate a trade-off between inflation and employment objectives. The presence and size of this trade-off depends on how flexible prices are in the “dirty” and “green” sectors relative to the rest of the economy, and on whether climate policies consist of taxes or subsidies.
    Keywords: inflation; climate policy; green transition
    JEL: E31
    Date: 2023–02–14
  7. By: Felix Kapfhammer
    Abstract: This paper studies the economic consequences of carbon taxes at the macroeconomic and sectoral level. I propose a novel monthly measure of effective carbon tax rates, which, in contrast to the measures used by the existing literature, accounts for the time-varying emission coverage of taxes that are both explicitly and implicitly levied on greenhouse gas-emitting goods. Employing the new measure for four Nordic countries, I find that effective carbon taxes reduce emissions as expected but also decrease macroeconomic and sectoral activity - though there is some heterogeneity in the effects within and across the Nordic countries.
    Date: 2023–01
  8. By: International Monetary Fund
    Abstract: At the request of the Chilean Minister of Finance, a team from the IMF Fiscal Affairs Department (FAD) conducted a capacity development mission in Santiago to evaluate options to improve green taxes in Chile, as part of a general tax reform presented to Congress in July 2022. The mission reviewed existing carbon taxes in the country, including revenue performance, coverage, and selected design issues. It also discussed changes to green taxes that will take effect in 2023, as well as new mitigation tools introduced in the Framework Law on Climate Change. The mission presented the authorities with four different carbon pricing reform scenarios that would bring Chile closer to or in line with its Nationally Determined Contribution (NDC) for 2030, and the legally binding net-zero pledge for 2050. The mission also stated that additional measures under all proposed scenarios, such as improved energy efficiency policies, introduction of feebates schemes and faster adoption of low and zero emission sources for transport, power, and industry, would further contribute to achieve climate goals. The mission used the Climate Policy Assessment Tool (CPAT) to perform the analysis. The tool was subsequently transferred to the authorities through a four-day hands-on capacity development workshop, which was attended by officials from the Ministries of Finance, Energy, Environment, and Transportation.
    Keywords: Climate mitigation policy carbon pricing carbon taxation climate change emissions energy; IMF Fiscal Affairs Department; Ministry of Finance staff; Ministry of Environment discussion; output price increase; C. energy price; Carbon tax; Greenhouse gas emissions; Climate policy; Global; Caribbean; Western Hemisphere
    Date: 2023–01–19
  9. By: Zaman, Khalid
    Abstract: The research led to the development of novel cross-panel data (CPD) approaches, whereby the regressand of a single nation relies concurrently on regressor from a wide variety of other countries. This research developed the Augmented Cross-Panel (ACP) unit root test and the Cross-Panel ARDL (CPARDL) estimator. It used them to measure Pakistan's environmental quality, which is sensitive to the choices made by other nations in the South Asian region. The information ranges from 1990 to 2021. The CPARDL estimates demonstrate that Pakistan's carbon emissions are mitigated by the increased contribution of India's alternative energy sources and Afghanistan's economic development. The political unrest in Bangladesh negatively impacted Pakistan's ecological stability. The CPD approach evaluates multi-regional projects to ensure sustainable infrastructure development.
    Keywords: Cross-panel data; Cross-panel variables; Cross-panel regression; Augmented cross-panel unit root; Cross-panel ARDL estimator.
    JEL: C32 O1 O13
    Date: 2023–01–02
  10. By: Philippe Quirion (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: Nous présentons l'outil TETE, en libre accès, destiné à évaluer les emplois générés par différentes activités liées à la transition écologique. Basé sur le tableau entrées-sorties, cet outil permet de prendre en compte les emplois directs et indirects. Nous présentons un exemple d'utilisation de cet outil : la quantification du nombre d'emplois dans les énergies renouvelables et la rénovation thermique des bâtiments, en cas de mise en oeuvre du scénario négaWatt 2022.
    Date: 2022
  11. By: Thibault Lemaire; Paul Vertier
    Abstract: Global commodity prices spikes can have strong macroeconomic effects, particularly in developing countries. This paper estimates the global commodity prices pass-through to consumer price inflation in Africa. Our sample includes monthly data for 48 countries over the period 2002m02-2021m04. We consider 17 commodity prices separately to take into account both the heterogeneity in price variations and the cross-correlations between them, and to depart from aggregate indices that use weights unrepresentative of consumption in African countries. Using local projections in a panel dataset, we find a maximum pass-through of 24%, and a long-run (18 months) pass-through of about 20%, higher than usually found in the literature, which typically uses aggregate indices. We also consider country-specific regressions to test whether estimated pass-through are related to countries’ observable characteristics. We find evidence that the pass-through is negatively correlated with the GDP per capita and the quality of transport infrastructure, and positively correlated with the share of food and energy in the consumption basket and the share of taxes on goods and services in government revenue. Net oil exporters, countries with larger energy subsidies and with a more independent central bank tend to have a lower pass-through. We further show that commodity-specific pass-through are correlated with the share of corresponding goods in the consumer basket.
    Keywords: Commodity Prices, Food Prices, Energy Prices, Inflation, Pass-Through, Africa
    JEL: C23 E31 F44 O11 Q02
    Date: 2023
  12. By: Florencia S. Airaudo (Universidad Carlos III de Madrid); Evi Pappa (Universidad Carlos III de Madrid); Hernán D. Seoane (Universidad Carlos III de Madrid)
    Abstract: We design a small open economy model where production combines energy and traditional factors with low short run substitutability and efficient technology adoption. We study green transitional dynamics. Permanent increases in brown energy prices induce a green transition with short run inflation and persistent output losses. Fiscal policy impacts the transition. Brown energy taxes are inflationary and crowd out brown energy use in favor of green energy. Green public investment or green subsidies have moderate macroeconomic effects, but do not crowd out brown energy use. We discuss fiscal costs and evaluate welfare along the green transition using different metrics
    Date: 2023–02
  13. By: Mozgovaya Oxana (The Russian Presidential Academy Of National Economy And Public Administration); Boris Fayn (The Russian Presidential Academy Of National Economy And Public Administration); Dmitry Agafonov (The Russian Presidential Academy Of National Economy And Public Administration)
    Abstract: This paper presents the results of the scientific research "The Development of tariff regulation methodology and estimation of district heating liberalization effects”. The authors studied legislation of the price cap regulation on which the ‘No-More-Than-Alternative-Boiler’ principle is based, constituting mechanisms of new economic relationships in the heating sector in Russia. The paper has studied the impact of the price cap regulation based on the ‘No-More-Than-Alternative-Boiler’ principle established for the biggest unified heat supply companies operating in municipal areas where the heating market has completely transitioned to the new economic model as of the second half of 2021 (i.e. the transition period has ended). A lack of heat price explosion is noted; however, in 12 out of 15 unified heat supply companies studied, the conditions are in place for the consumer heating prices to rise faster than inflation in the next few years. According to the results of the research, the main problems of price cap regulation based on the ‘No-More-Than-Alternative-Boiler’ principle have been revealed, and practical recommendations for improving the mechanisms of ‘No-More-Than-Alternative-Boiler’ principle of the price regulation have been established.
    Keywords: tariff regulation
  14. By: Greenstone, Michael (Energy Policy Institute and Department of Economics, University of Chicago.); Rohini Pande (Department of Economics, Yale University); Sudarshan, Anant (University of Warwick); Ryan, Nicholas (Department of Economics, Yale University)
    Abstract: Market-based environmental regulations are seldom used in developing countries, where pollution is the highest but state capacity is often low. We experimentally evaluate a new particulate matter emissions the first in the world, covering industrial plants in a large Indian city. There are three main findings. First, the market functioned well: permit trade was active and plants obtained permits to meet their compliance obligations almost perfectly. Second, treatment plants, randomly assigned to the emissions market, reduced pollution emissions by 20% to 30%, relative to control plants. Third, the market, holding emissions constant, reduces abatement costs by 11% to 14%. These cost estimates are based on a model that estimates heterogeneous plant marginal abatement costs from plant bids for emissions permits. More broadly, we find that emissions can be reduced at small increases in abatement costs. The pollution market therefore has health benefits that exceed costs by at least twenty-five times.
    Date: 2023
  15. By: Füchtenhans, M.; Glock, C.H.
    Date: 2022–06–24
  16. By: International Monetary Fund
    Abstract: Selected Issues
    Keywords: labor productivity dynamics; Policy recommendation; green policies in Spain; carbon pricing; support measure; Climate finance; Total factor productivity; Labor productivity; Employment; Europe; Global
    Date: 2023–01–19
  17. By: Chiemela Victor Amaechi
    Abstract: A methodological shift in both research and practise is now required to plan and manage low-carbon investments in large real estate assets, in order to satisfy the European energy efficiency criteria recently (see EU Directive 2018/844). Even though a rapid increase in large-scale building retrofit rates is expected, new strategic methods should analyse entire building portfolios rather than single-building perspectives in order to determine the amount of energy retrofit that will result in the greatest overall value. In this paper, discussions on housing decisions is built for the assessment of investment in both monetary and non-monetary benefits of a retrofit expenditure, as well as determining the best efficiency programme across a large building portfolio. In terms of monetary benefit, the savings generated by the investment over its entire life cycle can be achieved. With recent calls for sustainability he environmental benefit in terms of averted CO2 emissions is the first non-monetary item can be achieved. When energy efficiency is also intended as a strategy to maintain the history. Hence, realtors should also examine the value of enhanced indoor comfort and the value of building preservation. This study also intends to raise knowledge in the sustainable real estates, private residential housing market and green buildings to add to the value of biodiversity and urban ecosystem services, as well as the real estate market.
    Keywords: Built Environment; Circular economy; real estate; sustainability
    JEL: R3
    Date: 2022–01–01
  18. By: Antoine Dechezleprêtre; Luis Díaz; Milenko Fadic; Guy Lalanne
    Abstract: The automotive sector is important across OECD countries in terms of value-added and R&D, but is also heavily affected by the green and the digital transformations. This paper offers a novel and holistic view of the automotive sector and its surrounding ecosystem based on a combination of Inter-Country Input-Output (ICIO) tables, patent data, mergers and acquisitions (M&A) transactions, cross-country micro-distributed data and firm-level balance sheet data. It identifies the boundaries of this industrial ecosystem including connected sectors (e.g. upstream and downstream) as well as knowledge and technology providers (e.g. universities or the digital industry). The paper documents emerging trends at the geographical and technological levels and provides a comprehensive assessment of the ecosystem’s changing microstructure, with a growing role of young and digital-intensive companies. Finally, it provides recommendations for effective public policies to support the automotive ecosystem, with a focus on innovation, competition and the growth of young firms.
    Keywords: automotive, autonomous vehicles, decarbonisation, industrial ecosystems, industrial policy
    JEL: L62 O25 L50 O38 Q58
    Date: 2023–03–01
  19. By: Hugh Miller; Simon Dikau; Romain Svartzman; Stéphane Dees
    Abstract: Several ‘critical’ raw materials, including metals, minerals and Rare Earth Elements (REEs), play a central role in the low-carbon transition and are needed to expand the deployment of low-carbon technologies. The reliable and affordable supply of these resources is subject to supply-side risks and demand-induced pressures. This paper empirically estimates the material demand requirements for ‘Transition-Critical Materials’ (TCMs) implied under two NGFS Climate Scenarios, namely the ‘Net Zero by 2050’ and ‘Delayed Transition’ scenarios. We apply material intensity estimates to the underlying assumptions (e.g. with regard to technological innovation) on the deployment of low-carbon technologies to determine the implied material demand between 2021 and 2040 for nine TCMs. We find several materials to be subject to significant demand-induced pressures under both scenarios. Subsequently, the paper examines the possible emergence of material bottlenecks for three materials, namely copper, lithium and nickel. The results indicate possible substantial mismatches between supply (accounting for variables such as existing reserves, technological deployment and recycling rates) and demand, which would be further exacerbated if the transition is delayed rather than realised immediately. We discuss these findings in the context of different possible transmission channels through which these bottlenecks could affect financial and price stability, and propose avenues for future research.
    Keywords: Low-Carbon Transition, Commodities, Critical Raw Materials, Scenario Analysis, Financial Risk, Price Stability, Geopolitics of the Energy Transition
    JEL: Q02 Q5 Q42 L72 G10 E44 E31 F5
    Date: 2023
  20. By: LU Guanyu; TANAKA Kenta; ARIMURA Toshi H.
    Abstract: This study aims to reveal the extent to which the Tokyo and Saitama emissions trading schemes (ETSs) affect the energy efficiency of manufacturing facilities, based on the Economic Census for Business Activity and Census of Manufacture. In this analysis, we estimate the energy efficiency of facilities in Japan using stochastic frontier analysis (SFA). Then, we estimate how much the facilities’ energy efficiency is influenced by the Tokyo and Saitama ETSs. Our results show that the energy efficiency of targeted facilities decreased during the announcement period. Our estimation results show no difference in energy inefficiency between targeted and nontargeted facilities in the implementation period of the ETSs. Additionally, the estimation results imply that carbon leakages through outsourcing did not occur during the implementation period.
    Date: 2023–02
  21. By: Kohei Matsumura (Bank of Japan); Tomomi Naka (Bank of Japan); Nao Sudo (Bank of Japan)
    Abstract: Carbon tax has attracted increasing attention as a means of curbing greenhouse gas (GHG) emissions. While the implementation of carbon taxes necessarily involves consideration of the impact across different sectors and different periods, most existing studies use models which do not provide a detailed account of either sectoral interaction or the dynamic nature of the responses of households and firms. To fill this gap, we construct a New Keynesian multi-sector dynamic stochastic general equilibrium (DSGE) model with an input-output structure of intermediate inputs and an investment network calibrated to Japan's economy. We study the impact over time of carbon tax on different sectors, on aggregate GDP, and on GHG emissions. We then consider the long-term implications through a steady-state analysis, and the short- to medium-term implications by a simulation from 2020 to 2050, under various scenarios with different tax base compositions and announcement timings. We show that the impact on the trade-off between output and GHG emissions is importantly affected by inter-sectoral interactions among firms, and by the intertemporal decisions of households and firms.
    Keywords: carbon tax, climate change, transition risks, input-output linkages
    JEL: D57 E22 H23 Q54
    Date: 2023–02–17
  22. By: Filippo Tassinari (Universitat de Barcelona & IEB)
    Abstract: The aim of this paper is to shed light on the effect of Low Emission Zones (LEZs) on traffic. LEZs are areas in which access is restricted for the most polluting vehicles. They have been found to be effective in reducing pollution, while the expected effect on traffic is not clear. Using high-frequency granular data on traffic for the city of Madrid, I analyse whether LEZ schemes are effective in reducing traffic within the area of implementation and whether they generate a displacement effect. Taking advantage of the exogeneity of the implementation timing, I develop a pre/post analysis based on time. Results suggest a reduction in traffic inside the restricted area and a displacement to all the other areas of the city. I find a switch to public transport for commutes directed towards the restricted area and rerouting of trips for destinations outside Madrid Central to be two of the possible mechanisms explaining these results. The reduction in transit inside the restricted area gradually decreases over time and disappears after 7 months. This is consistent with the renewal of the vehicles’ fleet with unrestricted and cleaner vehicles generated by the policy.
    Keywords: Traffic calming policy, low emission zone, traffic, cities, displacement
    JEL: R41 R48 H23
    Date: 2022
  23. By: Maniatis, Yannis; Doukas, Haris; Karagiannis, Emmanuel
    Abstract: While implementing the New Green Deal, the European Union is faced with major energy challenges and dilemmas. Energy poverty is an issue of critical importance affecting many Europeans. Since Greece has experienced a prolonged period of crises, the strengthening of energy democracy and the fight against energy poverty must be among the top national priorities. Collective energy actions can pave the way towards the uptake of renewable energy, enabling and incentivizing consumers to become prosumers. This study first outlines the main theoretical perspectives on the politics of energy and proposes a new approach to understand renewable energy. Then it describes the EU energy policy and the transition to a climate-neutral economy. It briefly explains the concept of energy communities before focusing on the case of Greece. The study examines the rise of the country’s energy communities, including the Agrinio and Minoan communities. It also explains the measures taken in Greece during the last decade to tackle energy poverty by offering incentives for energy savings. Moreover, the study describes the national energy and climate plan by examining the case of Tilos. Finally, the study summarises the main findings and offer some policy recommendations.
    Keywords: Greece; energy poverty; energy saving; prosumers; energy democracy; renewable energy
    JEL: Q00
    Date: 2023–02–01
  24. By: Natalia Fabra (Universidad Carlos III de Madrid); Imelda (IHEID, Graduate Institute of International and Development Studies, Geneva)
    Abstract: Given the critical role of renewable energies in current and future electricity markets, it is important to understand how they affect firms’ pricing incentives. We study whether the price-depressing effect of renewables depends on their degree of market price exposure. Paying renewables with fixed prices, rather than market-based prices, is more effective at curbing market power when the dominant firms own large shares of renewables, and vice-versa. Our empirical analysis leverages several short-lived changes to renewables regulation in the Spanish market and shows that switching from full-price exposure to fixed prices caused a 2-4 percent reduction in the average price-cost markup.
    Keywords: Market power; Forward contracts; Arbitrage; Renewables
    JEL: D47 L14 J52 Q20
    Date: 2022–12–28
  25. By: Alberto Agnelli; Hélia Costa; Damien Dussaux
    Abstract: The economic consequences for firms investing in green innovation, and therefore their incentives to innovate, are not well understood. This paper empirically assesses the economic returns on innovation in cleaner vehicles. The analysis uses data on passenger car market shares and patents for car manufacturers operating in eight countries for the period 2005-2021. The results show that, when vehicle fuel prices increase, firms having previously successfully filed patents related to both electric and hybrid vehicles and fuel efficiency experience an increase in their market share. This increase takes place between 7 and 8 years after the patent stock is accumulated for patents related to electric and hybrid vehicles and between 8 and 15 years for patents related to fuel efficiency. The analysis also finds that in contexts where fuel price salience is high, price increases generate larger and earlier competitiveness returns for firms having previously invested in cleaner technologies.
    Keywords: firm performance, fuel prices, fuel taxation, green technology, price salience, technological change
    JEL: O30 Q55 Q48
    Date: 2023–02–22
  26. By: Arvanitopoulos, Theodoros; Wilson, Charlie; Ferrini, Silvia
    Abstract: Local energy systems (LES) are designed to decarbonize, balance, and coordinate supply, storage and demand resources. Which local conditions enable LES to flourish? Using a unique dataset of 146 LES projects in the UK from 2010 to 2020, we apply econometric methods to identify energy, institutional and socio-economic conditions significantly associated with LES, but not other local energy forms. We show distributed power generation, low-carbon infrastructure firm activity, local government strategy and active energy efficiency markets are enablers of LES involving multiple actors, sectors and skill sets. These conditions describe a clear policy agenda for stimulating and supporting emerging local energy markets.
    Keywords: decarbonization; decentralization; digital skills; landscape transition; local energy systems; spatial econometric modelling; EP/S031863/1; EP/S031898/ 1; 101003083
    JEL: C10 O33 Q40 R11
    Date: 2022–11–14
  27. By: Blanc, Corin
    Abstract: En 2021, le changement climatique était considéré par l’ensemble des Européens comme le problème le plus inquiétant auquel le monde ait à faire face, au même titre que la propagation des maladies infectieuses. Bien que bouleversés par la pandémie mondiale du COVID-19, les habitants des pays de l’Union Européenne sont restés conscients des conséquences néfastes du réchauffement climatique. La menace que ce dernier représente pour notre bien-être se traduit notamment par la multiplication des catastrophes naturelles, et donc des risques pour les systèmes naturels et humains. La réduction à grande échelle des émissions de gaz à effet de serre (GES), la modification des modes de vies et l’adaptation des infrastructures dans les zones à risque sont devenues aujourd’hui des mesures vitales. Il s’agit ici tout d’abord de déterminer les différences de perception du changement climatique et des pratiques écologiques entre les pays européens. Certaines régions d’Europe ressentent déjà les effets du réchauffement climatique (incendies, canicules, inondations …) tandis que d’autres sont encore relativement épargnées. Cela explique les avis divergents concernant l’urgence à agir, auxquels s’ajoutent les différences culturelles. Dans un deuxième temps, nous analysons la relation entre ces actions et le bien-être de ceux qui les mettent en œuvre. L’utilisation de transports respectueux de l’environnement ou encore l’achat de produits issus de l’agriculture biologique sont corrélés avec une satisfaction de vie plus élevée. Toutefois, la position sociale et le sexe des individus jouent aussi un grand rôle dans la pratique quotidienne de ces actions pro-environnementales.
    Keywords: Bien-être, Environnement, Eurobarometer, Environment, Transition
    Date: 2023–01
  28. By: Kurz, Konstantin; Bock, Carolin; Knodt, Michèle; Stöckl, Anna
    Date: 2022
  29. By: Giulio Cornelli; Jon Frost; Leonardo Gambacorta; Ouarda Merrouche
    Abstract: Billions of dollars in private and public capital have poured into climate tech in the United States since 2005. This raises questions around the social efficiency and financial performance of these investments. We find that more private capital is allocated to technologies with a higher emission reduction potential and that investors have prioritised more mature technologies. Moreover, more private capital is directed to innovative companies as the sector matures and grows and financial frictions abate. Higher allocative efficiency of investments is in turn associated with better financial performance, both at the company level and at the investor level. US government subsidies have been allocated more to technologies attracting less private capital. Their crowding-in effect is greater when allocated to nascent technologies that are not yet patented.
    Keywords: climate change, climate tech, venture capital, innovation
    JEL: G11 G14 G24 Q54
    Date: 2023–02
  30. By: Zare, Fatemeh; Bahmer, Luis; Campuzano-Mojik, Lázaro; Schiereck, Dirk
    Date: 2022–01–26
  31. By: Dessouky, Maged; Yao, Siyuan
    Abstract: California has a long history of reducing greenhouse gas (GHG) emissions, and has been working to accelerate the adoption of battery electric heavy-duty trucks (BEHDTs). Unlike diesel heavy-duty trucks (DHDTs), which have hundreds of miles of range per refill, BEHDTs have a restricted, load-dependent driving range, which makes charging planning an important role in the use of BEHDTs as an alternative to DHDTs. This research study investigates a mixed fleet drayage routing problem (MFDRP) with non-linear charging times. The study extends existing mixed fleet drayage routing models by considering multiple charging locations and allowing for more flexible routes for freight pickup and delivery. We formulate the MFDRP as a mixed integer programming model. After linearization and variable elimination, the model can be solved by commercial optimization solvers. However, the model becomes inefficient to solve when the problem size increases. Therefore, we develop a modified adaptive large neighborhood search algorithm, which can solve the problem with hundreds of units of demand in a few CPU minutes. Finally, we simulate one-day drayage operations with different BEHDT shares in the fleet for the years 2022, 2025, and 2030 to assess the potential for substituting DHDTs with BEHDTs. The numerical experiments indicate that employing BEHDTs as substitutes for DHDTs will increase the fleet size under the same level of demand. To reach the maximum share of BEHDTs in the truck fleet, the fleet size increases by 47.2%, 3.4%, and 3.4% in 2022, 2025, and 2030, respectively. Over 50% (90%) CO2 (NOx) emission reductions can be achieved by employing BEHDTs to the maximum share in the fleet. View the NCST Project Webpage
    Keywords: Engineering, Drayage operations, routing, battery electric heavy-duty trucks
    Date: 2023–02–01
  32. By: Walker, Laverne; de Paula, Jônatas
    Abstract: Science, Technology and Innovation (STI) is important in advancing sustainable development across the globe. One approach available to countries to promote their sustainable development agendas is the advancement of STI to support the adoption of renewable energy technologies. The continued reliance on fossil fuels in the Caribbean is one of the factors hindering the rate at which countries within the subregion are developing. Taking this into account, this study assesses whether the advancement of STI is driving the energy transition in the Caribbean subregion and draws lessons on how STI can better support the subregion’s sustainable development agenda.
    Date: 2022–12–29
  33. By: Franziska Holz; Christian von Hirschhausen; Robin Sogalla; Lukas Barner; Björn Steigerwald; Claudia Kemfert
    Abstract: Ein Jahr nach dem Beginn des russischen Angriffskriegs auf die Ukraine haben sich die Erdgasmärkte in Deutschland und Europa stabilisiert. Obwohl Russland seine Erdgaslieferungen eingestellt hat, ist keine Versorgungsnotlage eingetreten, weil rasch andere Bezugsquellen aktiviert werden konnten und die Nachfrage relativ stark zurückgegangen ist. Auch für den Winter 2023/24 ist nicht mit Engpässen zu rechnen, allerdings bleiben Einsparbemühungen von Industrie und Haushalten wichtig. Angesichts der rückläufigen Bedeutung von Erdgas auf dem deutschen Weg zu Klimaneutralität ist der geplante Bau von Flüssiggasterminals (LNG-Terminals) an Land aber weder energiewirtschaftlich notwendig noch klimapolitisch sinnvoll.
    Date: 2023
  34. By: Annelie Stumpp; Hermann Lebherz
    Abstract: Most Inner Cities suffer from highly condensed built fabric which stores the heat of summer days. To relief this effect several architects have started to integrate not only earth bound greenery but to integrate plants in their vertical facades. Through the plants there is a mitigation of the Heat Island effect since the leaves of the plants prevent the sun rays to heat up stone and glass facades. At the same time plants are generating oxygene to improove air quality of the inner cities. One further aspect of green facades ist hat the leaves can clean air from inner city dust. The whole year greenery gives as well a a positive psycholgical well beening in the nature and are improving the quality of life in inner cities One further positive effect is that plant have no hard surfaces and are therefor not reflecting noise but are reducing noise through their leaves. WLS are consultants for facades of a highrise bilding with a timber facade, a necessary sprinkler system and a planting system at vertical facades. This case study will highlight the state of art of facade greenery in the forefront of green technology with natural materials, combined with highly sophisticated building technology.
    Keywords: generating oxygen to improve air quality; improve quality of life in inner cities; Mitigation of the Heat Island effect; Vertical green facades
    JEL: R3
    Date: 2022–01–01
  35. By: Bartosz Uniejewski
    Abstract: This paper introduces a novel probabilistic forecasting technique called Smoothing Quantile Regression Averaging (SQRA). It combines Quantile Regression Averaging - a well performing load and price forecasting approach - with kernel estimation to improve the reliability of the estimates. Three variants of SQRA are evaluated across datasets from four power markets and compared against well-established benchmarks. Empirical evidence indicates superior predictive performance of the method in terms of the Kupiec test, the pinball score, and the conditional predictive accuracy test. Moreover, considering a day-ahead market trading strategy that utilizes probabilistic price predictions and battery storage, the study shows that profits of up to 9 EUR per 1 MW traded can be achieved when forecasts are generated using SQRA.
    Date: 2023–02
  36. By: Choi, Jaerim (University of Hawaii at Manoa); Hyun, Jay (HEC Montreal); Kim, Gueyon (University of California, Santa Cruz); Park, Ziho (National Taiwan University)
    Abstract: We study long-run environmental impacts of trade liberalization on US manufacturing by exploiting a plausibly exogenous reduction in US trade policy uncertainty: the conferral of Permanent Normal Trade Relations (PNTR) to China. Using detailed data on establishment-level pollution emissions and business characteristics - including trade activities and global subsidiary information - from 1997 to 2017, we show that establishments reduce toxic emissions in response to a reduction in trade policy uncertainty. Emission abatement is mainly driven by a decline in pollution emission intensity, and not by establishment exits or a reduction in production scale. Emission reduction is more pronounced for (i) establishments with foreign sourcing networks and (ii) those under more stringent environmental regulations. We provide further evidence that supports the pollution haven hypothesis whereby offshoring is central to the mechanism - US manufacturers begin to source from abroad and establish more subsidiaries in China after PNTR, especially those that emit pollutants heavily.
    Keywords: pollution haven hypothesis, toxics release inventory, pollution emissions, trade and environment, trade policy uncertainty, offshoring, particulate matter, PNTR
    JEL: Q53 Q56 F14 F18 F23
    Date: 2023–02
  37. By: Marco Castagna; Federico Garzia; Roberto Lollini
    Abstract: The European Green Deal's Renovation Wave of the building stock opens up opportunities to companies in the real estate sector. The use of energy efficient lighting technologies and intelligent control systems significantly contributed to electricity savings and reducing carbon dioxide emissions in the construction sector without requiring deep interventions inside the buildings. To assess the economic revenue of the investment, it is necessary to consider both the financial savings related to electricity consumption and the resulting impact on heating and cooling consumption. Despite the wide acceptance of energy-efficient lighting, the thermal effect on the buildings in terms of heating and cooling load has not been investigated. This study addresses the impact of lighting efficiency interventions on heating and cooling consumption in different types of buildings within various climate zones through dynamic simulations compliant with the UNI EN 52016:2018 standard. The research outcomes provide a set of regression models valuable for carrying out simplified feasibility studies considering electric and thermal impacts of lighting renovation measures.
    Keywords: Artificial light; Dynamic simulations; Energy Efficiency; Regression modelling
    JEL: R3
    Date: 2022–01–01
  38. By: Franz Fuerst
    Abstract: The introduction of minimum energy efficiency standards (MEES) for buildings has been hailed as a milestone for improving the carbon footprints and energy consumption of the lowest performers in a number of countries. However, there is a concern that landlords will either pass on the additional costs to tenants via increased rents or withdraw non-compliant cheaper properties from the market altogether, thereby reducing supply in this market segment and driving up rents. As tenants in properties with lower energy efficiency performance tend to have lower incomes, the any direct or indirect rent increases stand to affect them disproportionately. This paper estimates the impact of the MEES policy on rents in the UK private rental market using a proprietary dataset of 3.6 million rental observations and property characteristics. It comprises a large set of control variables such as location, size, age and condition. The latter is particularly important as rental properties with lower energy efficiency levels are on average older and located in less attractive areas than their more energy efficient counterparts. To estimate the dynamic effects of the change in policy, we also apply a difference-in-difference (DID) estimation and a regression discontinuity design. This allows us to compare the rental price trajectory of a treatment group (EPC F/G rental properties) to one or several control groups (higher EPC bands and/or non-rental properties).
    Keywords: Energy Efficiency; Housing Economics; Policy impact; Sustainability regulations
    JEL: R3
    Date: 2022–01–01
  39. By: Füchtenhans, M.; Glock, C.H.; Grosse, E.H.; Zanoni, S.
    Date: 2023
  40. By: Maya Papineau (Department of Economics, Carleton Univeristy); Nicholas Rivers (Department of Economics, Univeristy of Ottawa); Kareman Yassin (Department of Economics, Univeristy of Ottawa)
    Abstract: Over 50 countries representing three quarters of global CO2 emissions have pledged to achieve a net-zero carbon economy by 2050, and energy efficiency improvements are a primary contributor in policy scenarios that attain this goal. However, uncertainties remain about the realized effectiveness of energy efficiency programs. This paper is provides evidence on the realized savings from Canada’s largest residential energy retroï¬ t program. We use utility data from 20, 000 houses and detailed energy audit records from the EnerGuide for Homes database, which includes modeled predictions of energy savings from retroï¬ t adoptions. The retroï¬ t program reduces natural gas consumption in the average participating home by about 21%, about 60% of predicted natural gas savings. Whole-envelope retroï¬ ts are predicted to reduce natural gas consumption by 67%, but in practice only half of these savings are realized. This underscores the importance of developing new modeling approaches that incorporate house-level utility data, which reflect the outcome of realized rather than predicted occupant behavior, to increase retroï¬ t programs’ realized energy savings and return per subsidy dollar spent. Classification
    Keywords: energy efficiency, energy retrofit program, energy savings, Canada
    Date: 2022–12–19
  41. By: Linde Kattenberg; Erdal Aydin; Dirk Brounen; Nils Kok
    Abstract: Using a natural experimental setting where a solar PV subsidy is assigned randomly to applying households, we estimate the impact of subsidy provision on the adoption of solar PV, installed capacity, timing of the adoption and energy consumption. The results imply that the provision of subsidy leads to an 11.9 percent increase in the probability of adopting solar PV among the households who applied for the subsidy. The findings also indicate that the households who are accepted to the subsidy program invest in an 8.9 percent larger installation as compared to rejected households, and adopt solar panels 55.9 percent faster. Finally, examining the subsequent electricity consumption of the applicants, we report that subsidy provision leads to a 3.74 percent decrease in households' electricity consumption as compared to the rejected applicant group after 1 year, and a 3.93 percent decrease after 5 years.
    Keywords: natural experiment; Residential Sector; solar PV; subsidy program
    JEL: R3
    Date: 2022–01–01
  42. By: Andrea Ugolini (Department of Economics, Management and Statistics, University of Milano-Bicocca); Juan C. Reboredo (Universidade de Santiago de Compostela, Department of Economics, ECOBAS Research Center); Javier Ojea-Ferreiro (Bank of Canada)
    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: Climate transition risk, CDS spreads, credit risk
    JEL: C24 G12 G32 Q54
    Date: 2023–02
  43. By: Faber, Malte; Rudolf, Marco; Frick, Marc; Becker, Mi-Yong
    Abstract: In this paper, we present a way that allows to make fundamental statements about how economic action entails harmful effects on the environment. These effects are due to natural scientific reasons and are particularly present in the industrialised economy. The starting point of our considerations is that every economic action requires energy, of which many different forms exist. Taking all of these forms into account, heat energy has a particular significance, because other forms of energy can never appear in isolation, but only conjointly with heat energy. For this reason, the branch of physics that deals primarily with energy is called thermodynamics. The study of thermodynamics yields the central link between economic activity and its environmental impact. Understanding basic insights of thermodynamics enables decision-makers in environmental policy to understand the nature of environmental problems and to develop possible solutions. First, we deal with the connection between physical work and heat. Then we explain the two main Laws of Thermodynamics and go into detail about the concept of entropy. We use Boltzmann's approach of the degree of order to give an illustration of the entropy concept. We then turn to the consideration of thermodynamics in economics, first provided by Georgescu-Roegen in 1971. Following this we explain the importance of thermodynamics for environmental policy. We conclude with a summary. In diesem Beitrag stellen wir einen Weg vor, der es erlaubt, grundsätzliche Aussagen darüber zu treffen, dass wirtschaftliches Handeln schädliche Auswirkungen auf die Umwelt mit sich bringt. Diese Auswirkungen sind naturwissenschaftlich bedingt und treten insbesondere in der industrialisierten Wirtschaft auf. Ausgangspunkt unserer Überlegungen ist, dass jedes wirtschaftliche Handeln Energie benötigt, von der es viele verschiedene Formen gibt. Unter Berücksichtigung all dieser Formen kommt der Wärmeenergie eine besondere Bedeutung zu, da andere Energieformen nie isoliert, sondern nur in Verbindung mit der Wärmeenergie auftreten können. Aus diesem Grund wird der Zweig der Physik, der sich hauptsächlich mit Energie beschäftigt, Thermodynamik genannt. Das Studium der Thermodynamik stellt die zentrale Verbindung zwischen wirtschaftlicher Tätigkeit und ihren Auswirkungen auf die Umwelt her. Das Verständnis grundlegender Erkenntnisse der Thermodynamik ermöglicht es Entscheidungsträgern in der Umweltpolitik, das Entstehen von Umweltproblemen zu verstehen und mögliche Lösungen zu entwickeln. Zunächst befassen wir uns mit dem Zusammenhang zwischen physikalischer Arbeit und Wärme. Dann erläutern wir die beiden Hauptsätze der Thermodynamik und gehen ausführlich auf das Konzept der Entropie ein. Zur Veranschaulichung des Entropiekonzepts verwenden wir den Boltzmann'schen Ansatz des Ordnungsgrades. Anschließend wenden wir uns der Betrachtung der Thermodynamik in den Wirtschaftswissenschaften zu, die erstmals von Georgescu-Roegen im Jahr 1971 vorgelegt wurde. Anschließend erläutern wir die Bedeutung der Thermodynamik für die Umweltpolitik. Wir schließen mit einer Zusammenfassung.
    Keywords: Classical Mechanics; Joint Production; Environmental Problems; Thermodynamics; Energy; Entropy; Irreversibility; Efficiency
    Date: 2023–02–14
  44. By: Francesca Andreolli (ECCO Climate Think Tank); Chiara D'Alpaos (Department of Department of Civil, Architectural and Environmental Engineering, University of Padova); Peter Kort (Department of Econometrics and Operations Research, Tilburg University)
    Abstract: Due to the deployment of distributed renewable energy sources (e.g., solar), the introduction of communication technologies, and the digitalization of the power system (e.g., smart meters, control devices), energy consumers are switching from passive to active in the management of their energy consumption, production, and storage patterns. In a consumer-centric energy market, Peer-to-Peer (P2P) trading allows consumers and prosumers to directly trade energy without any intermediation by traditional energy suppliers. In this paper, we investigate households’ decisions to invest in domestic PV plants coupled with battery storage, namely PV battery systems (PVBs), and to participate in a local energy community (EC), in which energy quotas can be exchanged among EC members via P2P trading. Thanks to storage and P2P, households can strategically decide their optimal course of action and their optimal energy production/consumption patterns and can actively offer services that other EC participants bid for. In detail, we examine whether P2P trading can increase the value of investments in PVBs and affect the decision on both the optimal investment timing and size. Following the real options approach, we develop a stochastic optimization model. Our results show that ceteris paribus, thanks to P2P trading opportunities, households accelerate investments and invest in larger plants compared to scenarios in which P2P trading in not permitted. According to our findings, at current market prices, it is never optimal to invest immediately and, as P2P traded energy increases, households invest earlier and in smaller plants.
    Keywords: PV Plants, Battery Storage, P2P Trading, Real Options, Dynamic Stochastic Optimization
    JEL: Q42 C61 D81
    Date: 2023–02
  45. By: Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Simplice A. Asongu (Yaoundé, Cameroon)
    Abstract: Since the beginning of 2014, reports of cult violence have increased sharply in the Nigeria’s oil producing communities. Hence, we set out to examine the role of corporate social responsibility (CSR) from multinational oil companies (MOCs) in mitigating the spread of cult group violence in the region. A total of two thousand four hundred respondents were sampled across the nine states of the Niger Delta. Results from the use of estimated logit model reveal that MOCs via Global Memorandum of Understanding (GMoU) are in good position to deter the aggression and rise of cult violence using interventions for youth as a priority target group mechanism. This calls for pro-youth capacity building programmes, specially designed to equip the clusters with appropriate skills required for peaceful engagement and to complement government efforts in the planning and implementation of the development agenda for their respective communities. In turn, this will contribute towards enhancing a peaceful environment for doing business in the Niger Delta region.
    Keywords: Environmental justice, cult violence, corporate social responsibility, oil producing communities, sub-Saharan Africa
    Date: 2023–01
  46. By: Pyddoke, Roger (Swedish National Road & Transport Research Institute (VTI)); Algers, Staffan (Swedish National Road & Transport Research Institute (VTI))
    Abstract: European Union Member States may want to know how far towards their national climate goals currently enacted national policies and Fit for 55 policies can take them. This study compares CO2 emissions from future car fleets and car use in Sweden projected by three models: an application of the PRIMES-TREMOVE model for Sweden, the Swedish Car Fleet Model, and the Swedish Transport Administration model. The projections use official Swedish energy price and policy trajectories as of late 2021. The results of all three models indicate that the evolution of car fleets and car use would bring the emissions from cars close to Sweden’s national goal of reducing CO2 emissions from domestic transport by 70% relative to 2010. The models’ results are very similar, although the models appear to differ considerably. The source of the CO2 emissions, i.e. the car fleet, develops differently in the different models. We discuss the similarities and differences among the models related to emissions and car fleet effects. The discussion concerns conditions prevailing before the pandemic and the Russian invasion of Ukraine. Two important policy implications follow from this. A government keen on achieving its national emission reduction goals may need to compensate for recent energy price changes occurring after forecasts were made by adjusting its policy instruments. Slower adjustments may create higher or even prohibitive costs of achieving goals. By regularly updating projections for exogenous price changes, such scenarios may be prevented.
    Keywords: Keywords CO2 emissions; Car fleet; Car use; Projection; Electrification; Biofuel
    JEL: Q54 Q58 R48
    Date: 2023–02–15
  47. By: Heikkinen, Daan
    Abstract: In the past two decades, technology providers have devoted a lot of their efforts to improving the energy efficiency of data centers in order to make them more efficient. This is because they have since the dawn of the information age in order to make them more efficient and effective. Therefore, this has proved to be beneficial both to the business sector as well as to the environment. In addition, it has also been beneficial both to the business sector and to the environment. In turn, this has resulted in a win-win situation for both sectors. As a result of the advancement of technology throughout history and the advancement of technology as a result of the advancement of technology, there has been a noticeable shift in the focus from efficiency to green as a result of the advancement of technology. To establish a sustainable planet, it will be required to consider the impact of a variety of factors, such as renewable energy, greenhouse gas emissions, water, waste, land, ecosystems, and biodiversity, in order to achieve a sustainable future, such as renewable energy, greenhouse gas emissions, water, waste, land, ecosystems, and biodiversity. Technology providers have the ability to have a positive impact on the environment by reducing the overall carbon footprint of the data centers and increasing the efficiency of the data centers by reducing the overall carbon footprint of the data centers and increasing the efficiency of the data centers by reducing the overall carbon footprint of the data centers. It is actually a fact that there are a number of technology infrastructures that are heavily reliant on data centers. One of the most important components of many of them is their data centers. Whatever the industry, whether it is Mobile App Development, Banking, Government, Telecommunication, or Telecom, there is no doubt that infrastructure technology is housed in a Data Center. This is regardless of the industry. It does not matter what industry you are in. Depending on where they are located, data centers can be classified into two types: those located inside the company and those located outside. The design and implementation of a Data Center is a complex process that requires a significant amount of expertise in order to be successful.
    Keywords: Technology and green, society and carbon free data center, strategies for green data center, data center and solar power
    JEL: L2 O14 O3 O32 O33 Q01 Q55
    Date: 2023–01–26
  48. By: Stefano Grassi; Francesco Ravazzolo; Joaquin Vespignani; Giorgio Vocalelli
    Abstract: This paper shows that the impact of the global money supply is disproportionally high for energy than for non-energy commodities prices. An increase in the global money supply for energy commodity prices results mostly in demand-pull inflation. However, for non-energy commodity prices, an increase in global money supply results in demand-pull inflation and cost-push inflation, as energy is a critical input for non-energy commodities. We introduce a Markov Switching framework with time-varying transition probabilities to quantify this effect. This macro-econometric model accounts for periods when the global money supply growth is slow, moderate, and fast. We find that the response to global money supply shocks is higher for energy than for non-energy commodity prices. We also find heterogeneous responses for both energy and non-energy commodities across regimes.
    Keywords: Global money supply, Energy and non-energy prices, Markov-Switching VAR
    JEL: C54 E31 F01 Q43
    Date: 2023–02
  49. By: Andreolli, Francesca; D'Alpaos, Chiara; Kort, Peter
    Abstract: Due to the deployment of distributed renewable energy sources (e.g., solar), the introduction of communication technologies, and the digitalization of the power system (e.g., smart meters, control devices), energy consumers are switching from passive to active in the management of their energy consumption, production, and storage patterns. In a consumer-centric energy market, Peer-to-Peer (P2P) trading allows consumers and prosumers to directly trade energy without any intermediation by traditional energy suppliers. In this paper, we investigate households’ decisions to invest in domestic PV plants coupled with battery storage, namely PVbattery systems (PVBs), and to participate in a local energy community (EC), in which energy quotas can be exchanged among EC members via P2P trading. Thanks to storage and P2P, households can strategically decide their optimal course of action and their optimal energy production/consumption patterns and can actively offer services that other EC participants bid for. In detail, we examine whether P2P trading can increase the value of investments in PVBs and affect the decision on both the optimal investment timing and size. Following the real options approach, we develop a stochastic optimization model. Our results show that ceteris paribus, thanks to P2P trading opportunities, households accelerate investments and invest in larger plants compared to scenarios in which P2P trading in not permitted. According to our findings, at current market prices, it is never optimal to invest immediately and, as P2P traded energy increases, households invest earlier and in smaller plants.
    Keywords: Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy
    Date: 2023–02–10
  50. By: Nthabiseng MOHLAKOANA; Peta WOLPE
    Abstract: South Africa’s electricity generation and transmission are currently dominated by the country’s vertical monopoly power utility, Eskom. Distribution is shared between 165 licenced municipalities and Eskom. The intention to divisionalise or unbundle Eskom will eventually affect the current distribution framework and the tariff structures in place, which in turn, could directly impact energy poverty within the country. Alongside this, South Africa recognises the dire and urgent need to address climate change and to transform into a low-carbon and climate-resilient country by lowering emissions and moving into a more sustainable energy future, which should be done within a just transition framework. That transition is premised on moving away from being fully dependent on fossil fuels for electricity generation to incorporating renewable energy. This paper attempts to find out if energy poverty alleviation strategies could emerge from a close examination of the distribution system and tariffs in the face of Eskom’s unbundling. In doing so it highlights that the tariff structure in place is to a large extent driven by the political economy of the country and without systemic changes will not, on its own, be a major driver in alleviating energy poverty.
    Keywords: Afrique du Sud
    JEL: Q
    Date: 2023–02–06
  51. By: International Monetary Fund
    Abstract: Selected Issues
    Keywords: staff team of the International Monetary Fund; revenue scenario; green tax; abnormal returns; withdrawal request; capital market depth; AFP investment portfolio; climate strategy; NDC goal; IMF staff calculation; Pension spending; Climate policy; Carbon tax; Greenhouse gas emissions; Global; Caribbean; Western Hemisphere
    Date: 2023–01–20
  52. By: Canavire Bacarreza, Gustavo J. (World Bank); de Ervin, Lyliana Gayoso (World Bank); Galeano, Juan José (Ministry of Finance, Government of Paraguay); Baquero, Juan Pablo (Boston College)
    Abstract: The recent global increases in fuel prices threaten the gains in poverty reduction that countries like Paraguay have achieved over the past few decades. Therefore, policy makers must understand the potential distributional impacts of increases in fuel prices to evaluate the implementation of alternative measures that could mitigate these impacts. This paper analyzes the potential effects of fuel prices on poverty and inequality in Paraguay. Using microsimulation methods and based on the Commitment to Equity framework, it estimates the impact of higher fuel prices on welfare, poverty, and inequality based on three scenarios: (a) increases in gasoline prices, (b) increases in diesel prices, and (c) simultaneous increases in gasoline and diesel prices. The results obtained suggest that the total impact of increasing fuel prices tends to be more regressive in Paraguay. At the same time, the results of the simulations indicate small effects on income inequality.
    Keywords: fuel prices, poverty, inequality, Paraguay
    JEL: D6 Q4 I3 P36
    Date: 2023–02
  53. By: TAKEDA Shiro; ARIMURA Toshi H.
    Abstract: The EU plans to introduce Carbon Border Adjustment Mechanism (CBAM) to curb carbon leakage and protect energy-intensive and trade-exposed (EITE) industry. This move by the EU to introduce CBAMs has raised concerns in Japan that it will harm Japanese industry and the economy. To address these concerns, this study tries to provide an ex-ante and quantitative analysis of the economic and environmental effects of the introduction of the EU CBAM. To capture the effects of the EU CBAM, this study employs a global multi-region, multi-sector computable general equilibrium model with 18 sectors and 17 regions. The main insights obtained from the analysis are as follows. First, we find that the introduction of EU CBAM significantly reduces carbon leakage from the EU. Second, the effects of the introduction of CBAM on GDP and welfare of each country varied from country to country, but the effects were generally very small. While there is a positive impact on GDP and welfare in Japan, again, the magnitude of the impact is very small. There will also be a negative impact on Japan’s EITE industry, but again, the magnitude of this impact is very small and not of great concern.
    Date: 2023–02
  54. 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
  55. By: Mauro Pisu; Filippo Maria D’Arcangelo; Assia Elgouacem; Tobias Kruse; Yannick Hemmerlé
    Abstract: This paper reviews different methods for assessing and comparing across countries the impact of climate change mitigation policies and policy packages on emissions. Broadening and deepening past and recent mitigation policies’ stocktaking efforts, as well as mapping them to their emission base, is key to comparing pricing and non-pricing policies and feed comparable information to ex-post empirical and ex-ante analytical models. Ex-post empirical approaches can provide benchmark estimates of policies' effectiveness from past data and furnish key parameter estimates to calibrate ex-ante analytical models (partial equilibrium, general equilibrium and integrated assessment models). Moreover, they can complement ex-ante analytical models by empirically validating their assumptions and informing models’ choices. Ex-ante analytical modelling are well suited to provide long-term forward-looking projections also on yet-to-be implemented policies. Sector specific models, such as energy system models, are well suited for a granular assessment of the impact on emissions of a wide range of price- and non-price-based policies. Outputs from the ex-ante sector-specific models can then feed into a Computable General Equilibrium model to quantify the effect of individual policies and policy packages on emissions, taking into account second order effects and reducing the risk of double counting the effect of policies.
    Keywords: Climate change, energy system models, evaluation of mitigation policies, general equilibrium models, stocktaking of mitigation policies
    JEL: Q54 Q58
    Date: 2023–02–28
  56. By: Aqib, Muhammad; Zaman, Khalid
    Abstract: Experts are interested in creating human capital's role in boosting economic growth. Some research has been done on using human capital to help lessen carbon emissions in developing countries, but more needs to be done. So, the study looked at how developing human capital can make a country more prosperous by making the environment more sustainable through labour-added technology. The study analyzed data from Pakistan from the years 1975 to 2020 and employed robust least squares regression, Granger causality, and innovation accounting matrix methods to estimate parameters. According to the robust least squares regression results, lowering carbon emissions and increasing human capital may be achieved by investing more in environmentally friendly research and development. However, a green development strategy will never materialize since the federal government needs to invest more money in education, healthcare, and improvements to the employment market. The Granger causality analysis confirmed that continued economic growth Granger causes carbon emissions on the one hand while causing increasing life expectancy and net enrolment rates on the other hand. R&D spending and labour-augmented technology Granger cause an increase in life expectancy by fostering the development of cleaner production methods, which in turn helps improve the long-term viability of healthcare in a nation. According to the innovation accounting matrix results, life expectancy and the net enrolment rate will be the essential human capital factors affecting carbon emissions over the next ten years. In addition to human capital, changes in the labour market, spending on research and development, and technology that helps people do their jobs also affect the green development agenda. Pakistan should spend more of its budget on human development through technical knowledge and research and development. This would help the country switch from fossil fuels to clean, green technologies and hybrid-energy efficient methods to reduce carbon emissions.
    Keywords: Human development; Carbon emissions; Labor augmented technology; R&D expenditures; Pakistan.
    JEL: C32 J24
    Date: 2023–01–04

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