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on Energy Economics |
| By: | Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Nepal, Rabindra (University of Wollongong); Davi-Arderius, Daniel (University of Barcelona) |
| Abstract: | Two electricity market crises following the lifting of post-Covid restrictions in 2021 and the natural gas supply interruptions in 2022, challenged the functioning of the EU electricity market and its design. This paper argues that the market design was already ripe for an overhaul as the efficient market paradigm has gradually given way to as instrument of cost-effective attainment of green targets and balancing of the elements of energy trilemma. We discuss the linkages between the long-term and short-term markets. While policy interventions to alleviate short-term affordability are important, they cannot constraint the long-term sustainability and security of supply. Short-term electricity markets have, technically, worked according to design. However, the distributional implications of them call for revisiting how resources are allocated to and operate in the market. We revisit several dimensions of market design with a view to the recent calls and to review and overhaul them such as windfall tax, contract for differences, market decoupling etc. |
| Keywords: | Electricity; Market design; Energy markets; Natural gas; Energy reform; Affordability; Security of supply; Sustainability |
| JEL: | D20 D30 D60 L10 L50 |
| Date: | 2023–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2023_004&r=ene |
| By: | Axel Gautier; Julien Jacqmin; Jean-Christophe Pooudou |
| Abstract: | Renewable energy communities involve various agents who decide to jointly invest in renewable production units and storage. This paper examines how these communities interact with the energy system and can decrease its overall cost. First, we show that a renewable energy community can contribute positively to welfare if the electricity produced by the investment is consumed close to its place of production, i.e. if the community has a high degree of self-consumption. Second, our analysis identifies the condition on prices and grid tariffs to align the community’s interest with welfare maximization. We also show that some of these grid tariffs do not have a negative impact on non-members of the community and could therefore limit potential distributional issues. Third, we argue that various internal organization of the renewable energy communities are feasible. The internal organization impacts the distribution of benefits among members but not the global efficiency of the community. |
| Keywords: | energy communities, decentralized production unites, energy transition, grid regulation |
| JEL: | L30 L94 Q48 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10254&r=ene |
| By: | Adélaïde Fadhuile (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Daniel Llerena (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Béatrice Roussillon (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | A demand response program is a promising tool to increase the share of intermittent renewable energy in the electricity production mix. It requires that households adapt their energy consumption to the level of energy production in order to balance the grid, i.e., decrease (increase) their consumption during peak load (peak energy production) event. However, energy conservation efforts suffer from many cognitive biases that impede the optimization of electricity consumption and thus demand flexibility. This article presents a randomized field experiment aimed at introducing demand response with nonmonetary incentives coupled by a set of nudges addressing these cognitive biases. Our results are very encouraging, as demand was successfully decreased by 21% during the peak load event and increased by 17% during the peak energy production event. Our tested nudges are cheap, easy to implement and provide interesting results in demand management programs. |
| Keywords: | Randomized field experiment, Energy conservation, Nudges, Flexibility |
| Date: | 2023–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03977597&r=ene |
| By: | Alexander Roth; Wolf-Peter Schill |
| Abstract: | The massive expansion of wind power and solar PV is the primary strategy to reduce greenhouse gas emissions in many countries. Due to their variable generation profiles, power sector flexibility needs to increase. Geographical balancing enabled by electricity grids and temporal flexibility enabled by electricity storage are important options for flexibility. As they interact with each other, we investigate how and why interconnection with neighboring countries reduces storage needs. To do so, we apply a cost-minimizing open-source capacity expansion model to a 100% renewable energy scenario of central Europe. We use a factorization method to disentangle the effect of interconnection on optimal storage through distinct channels: differences in (i) countries’ solar PV and wind power capacity factors, (ii) load profiles, as well as (iii) hydropower and bioenergy capacity. Results show that geographical balancing lowers aggregate storage capacities by around 30% in contrast to a similar system without interconnection. We further find that the differences in wind power profiles between countries explain, on average, around 80% of that effect. Differences in solar PV capacity factors, load profiles, or country-specific capacities of hydropower together explain up to 20%. Our analysis improves the understanding of the benefits of geographical balancing for providing flexibility and its drivers. |
| Keywords: | Variable renewable energy sources, electricity storage, interconnection, numerical optimization, 100% renewable energy |
| JEL: | C61 Q42 Q49 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2025&r=ene |
| By: | Böhm, Jonas; Tietz, Andreas |
| Abstract: | In diesem Working Paper wird eine Abschätzung des möglichen zukünftigen Bedarfs an landwirtschaftlicher Fläche für den Ausbau von Photovoltaik-Freiflächenanlagen in Deutschland erarbeitet. Für die Abschätzung werden aktuelle politische Ziele sowie verschiedene Energieszenarien betrachtet, um den Bedarf an installierter PV-Leistung in einem vollständig transformierten Energiesystem zu ermitteln. Die benötigte PV-Leistung kann auf verschiedenen Flächen (wie z.B. Dachflächen, Agrarflächen) installiert werden. Wie viele der Anlagen auf landwirtschaftlichen Flächen errichtet werden, hängt von vielen Faktoren ab und kann sich zukünftig sehr unterschiedlich entwickeln. Darüber hinaus wird der zukünftige Flächenbedarf von der spezifischen Flächeninanspruchnahme, also wie viel Fläche je installierter Leistung benötigt wird, beeinflusst. Alle drei Einflussgrößen sind mit einer hohen Unsicherheit behaftet. Als wahrscheinlichste Entwicklung werden das aktuelle politische Ziel von 215 GWp installierter Leistung bis 2030 und von 400 GWp für ein vollständiges transformiertes Energiesystem bis 2040, ein Anteil von 50 % auf landwirtschaftlichen Flächen sowie eine spezifische Flächeninanspruchnahme von 1, 4 ha/MWp angenom-men. Darauf basierend ergibt sich eine Flächeninanspruchnahme bei einem transformierten Energiesystem (Jahr 2040) von 280.000 ha. Das entspricht einem Anteil an der aktuell landwirtschaftlich genutzten Fläche von 1, 7 %. Die Spannweite aller betrachteten Szenarien liegt zwischen 0, 3 % und 4 %, was die hohe Unsicherheit der Prognose aufzeigt. |
| Keywords: | Erneuerbare Energien, Photovoltaik, Flächeninanspruchnahme, Energiewende, Deutschland, Renewable energies, photovoltaics, land use, energy transition, Germany |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtiwp:204&r=ene |
| By: | Kendall, Alissa; Dayemo, Kristi; Helal, Nadiyah; Iskakov, Galym; Pares, Francisco; Slattery, Margaret; Fulton, Lewis |
| Keywords: | Engineering, Social and Behavioral Sciences, electric vehicles, lithium-ion batteries, life cycle analysis, policy, social impact, global impact |
| Date: | 2023–03–02 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7m2536mp&r=ene |
| By: | Jaller, Miguel; Otero, Carlos |
| Abstract: | Researchers at the University of California, Davis developed a logistics decision-support tool that facilitates the joint routing of pick-ups and deliveries for cooperating entities to reduce environmental impacts and transport costs. The researchers implemented the tool in several hypothetical case studies to better understand the impact of joint routing and zero-emission vehicle policies on transport companies. The tool quantifies the cost and emissions savings from coordinated operations (pick-up and delivery) by estimating reduced fleet requirements and improved utilization factors. Additionally, the tool can consider the technical specifications (e.g., payload, range) and requirements (e.g., charging/fueling) of zero-emission vehicles. |
| Keywords: | Engineering |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt51f3p8r0&r=ene |
| By: | Peter Haan; Adrián Santonja; Aleksandar Zaklan |
| Abstract: | We evaluate German purchase subsidies for battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) using data on new vehicle registrations in Germany during 2015-2022. We account for confounding time trends and interacting EU-level CO2 standards using neighboring countries as a control group. The program was cost-ineffective, as only 40% of BEV and 25% of PHEV registrations were subsidy-induced, and had strong distributional effects, with greater uptake in wealthier and greener counties. The implied abatement cost of 870 euro per ton of CO2 for BEVs and 2, 470 euro for PHEVs suggests that subsidies to PHEVs were especially cost-ineffective. |
| Keywords: | Decarbonizing road transport, electric mobility, purchase subsidies, policy effectiveness, distributional effects of climate policy |
| JEL: | Q54 Q58 H23 R48 |
| Date: | 2023–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0011&r=ene |
| By: | Qiulin Ke; Michael White |
| Abstract: | With buildings accounting for 40% of the UK carbon footprint, environmental issues are becoming a significant focus for the commercial property industry. Since 2007 almost all units marketed for sale or lease have been required to exhibit an Energy Performance Certificate providing a rating of the energy efficiency of the unit from A (very efficient) to G (least efficient) as assessed by a specialist surveyor. However, there has been no consensus in the academic literature that energy efficiency is associated with higher transaction values and rents. But whether the behaviour of investors and tenants have changed due to the pressure of climate change. In this study, using a unique data set of existing office property rents and energy efficiency rating across the UK in 2021, we did not find that a better rating automatically gives rise to a higher rent. Other factors obviously come in to play too - for example, how recently the building may have been refurbished, other services the building provides such as a food service, bicycle shed, etc. The data also revealed that buildings with lower ratings commanded a higher rent than those with a superior EPC rating. |
| Keywords: | Energy Performance Certificate (EPC); Office Building; Office Rent; UK |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_94&r=ene |
| By: | Marcelo Cajias; Anett Wins |
| Abstract: | Whilst there is a broad consensus that energy efficiency as measured by the environmental performance certificates leads to higher asking rents, there is little evidence about investment strategies that consider energy efficiency as an optimisation factor. This paper focusses on identifying the conditions that lead to the highest increase in the willingness to pay for energy-conscious refurbishment. By making use of more than 1.5 m observations in Germany and the UK we disaggregate the expected willingness to pay to spatial, socioeconomic, and hedonic characteristics via Generalized Additive Models (GAMs). In a simulation study, we show that an investment strategy in residential real estate can be optimised via intelligent asset selection considering energy efficiency as an optimisation factor. |
| Keywords: | Energy Performance Certificate; housing; Machine Learning; Non linear effects |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_88&r=ene |
| By: | Yoosoon Chang; Ana María Herrera; Elena Pesavento |
| Abstract: | Using a novel approach to model regime switching with dynamic feedback and interactions, we extract latent mean and volatility factors in oil price changes. We illustrate how the volatility factor constitutes a useful measure of oil market risk (or oil price uncertainty) for policy makers and analysts as it captures uncertainty not reflected in other economic/financial uncertainty measures. Then, in the context of a VAR, we investigate the role of oil price uncertainty in driving inflation expectations and inflation anchoring. We show that shocks to the mean factor lead to higher expected inflation and inflation disagreement among professional forecasters and households. In contrast, shocks to the volatility factor act as aggregate demand shocks in that they result in lower expected inflation, yet they do increase disagreement about future inflation among professional forecasters and, especially, among households. We also provide econometric evidence suggesting the proposed endogenous volatility switching model can outperform other regime switching models. |
| Keywords: | oil price volatility, endogenous regime switching, expected inflation, inflation anchoring |
| JEL: | C13 C32 E32 Q35 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-14&r=ene |
| By: | Bangsund, Dean; Hodur, Nancy |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, Production Economics |
| Date: | 2023–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:333344&r=ene |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/009&r=ene |
| By: | Guillotreau Patrice (UMR MARBEC - MARine Biodiversity Exploitation and Conservation - IRD - Institut de Recherche pour le Développement - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Frédéric Lantz (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Lesya Nadzon (LINDE GAS Benelux); Jonathan Rault (UMR MARBEC - MARine Biodiversity Exploitation and Conservation - IRD - Institut de Recherche pour le Développement - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Olivier Maury (UMR MARBEC - MARine Biodiversity Exploitation and Conservation - IRD - Institut de Recherche pour le Développement - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier) |
| Abstract: | Because most food processes are fossil fuel-based, many food markets are more or less connected to the oil market. Fishing technology in the high seas being energy-intensive, higher oil prices should affect the fish markets. This research looks at price transmission between Marine Diesel Oil and a global fishery commodity, frozen Skipjack tuna (Katsuwonus pelamis) through a time series analysis combining four different methods to look for possible structural breaks and regime shifts in the relationship (Bai-Perron, Lavielle, Gregory-Hansen, Markov-switching). Our results prove that the long-run equilibrium between both prices is weakening after the turn of the 2010s. Explaining the drivers of change is of great interest for short-term forecast but also to build long-term scenarios where both supply and demand variables are likely to affect tuna markets. |
| Abstract: | Puisque la plupart des filières agro-alimentaires reposent sur des énergies fossiles, de nombreux marchés alimentaires sont plus ou moins connectés au marché du pétrole. La technologie des pêcheries hauturières étant elle-même intensive en énergie, un prix plus élevé du pétrole devrait se refléter dans le prix du poisson. Cette recherche s'intéresse à la transmission des prix entre le diesel marin et un produit de la pêche global, le listao (Katsuwonus pelamis) congelé, via une analyse de séries temporelles croisant quatre méthodes différentes pour repérer des changements structurels et de régime dans la relation de prix (Bai-Perron, Lavielle, Gregory-Hansen, Markov-switching). Nos résultats montrent que l'équilibre de long terme s'atténue au tournant des années 2010. Expliquer les facteurs de ce changement représente certes un enjeu important pour des prévisions de court-terme, mais permet également de bâtir des scénarios de long-terme où les variables d'offre et de demande sont susceptibles de perturber conjointement les marchés thoniers. |
| Keywords: | Cointegration, oil prices, tuna markets, regime shift, structural breaks |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03948692&r=ene |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/010&r=ene |
| By: | Ugo Panizza; Martina Hengge; Mr. Richard Varghese |
| Abstract: | Understanding the impact of climate mitigation policies is key to designing effective carbon pricing tools. We use institutional features of the EU Emissions Trading System (ETS) and high-frequency data on more than 2, 000 publicly listed European firms over 2011-21 to study the impact of carbon policies on stock returns. After extracting the surprise component of regulatory actions, we show that events resulting in higher carbon prices lead to negative abnormal returns which increase with a firm's carbon intensity. This negative relationship is even stronger for firms in sectors which do not participate in the EU ETS suggesting that investors price in transition risk stemming from the shift towards a low-carbon economy. We conclude that policies which increase carbon prices are effective in raising the cost of capital for emission-intensive firms. |
| Keywords: | Carbon Emissions; Carbon Prices: Climate Change; Transition Risk; Stock Returns; carbon Policy surprise; investors price; carbon intensity; climate mitigation policy; EU ETS; Greenhouse gas emissions; Stocks; Asset prices; Climate change; Europe; Global |
| Date: | 2023–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/013&r=ene |
| By: | Quang-Loc, Nguyen; Nguyen, Minh-Hoang; La, Viet-Phuong; Bhatti, Muhammad Ishaq Professor (S P Jain School of Global Management); Vuong, Quan-Hoang |
| Abstract: | Climate change poses manifold consequences to human well-being as well as ecosystems. One of the most widely accepted measures to mitigate climate risks is at the firm level, aiming to reduce carbon dioxide and innovate climate-friendly technology. However, doing so requires comprehensive factors, including legislation, the company’s strategy, and finance. Using the Bayesian Mindsponge Framework (MBF) for analyzing 178 enterprises listed in S&P 500 companies from 2016 to 2021, the current study examined how their climate risk mitigation efforts can affect their stock price. We found that emitted carbon dioxide negatively affects the stock price. In contrast, the income and mitigating strategies, including producing eco-friendly products, using renewable energy, and environmental expenditures investments, are positively associated with the increase in share value. However, the mitigation efforts are conditional on the income of the company. The results indicate that investors expect corporations to transform financial capital from the stock market into bankable, climate-resilient projects. Based on these findings, we suggest that building an eco-surplus culture by stimulating climate change knowledge can be a promising approach to promoting a corporation’s mitigation efforts. |
| Date: | 2023–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:gqypk&r=ene |
| By: | Andrea Bacchiocchi (Department of Economics, Society & Politics, Università di Urbino Carlo Bo); Sebastian Ille (Northeastern University London); Germana Giombini (Department of Economics, Society & Politics, Università di Urbino Carlo Bo) |
| Abstract: | The monetary policy operations of a Central Bank (CB) involve allocation decisions when purchasing assets and taking collateral. A green monetary policy aims to steer or tilt the allocation of assets and collateral towards low-carbon industries, to reduce the cost of capital for these sectors in comparison to high-carbon ones. Starting from a corporate bonds purchase program (e.g. CSPP) that follows a carbon-neutral monetary policy, we analyze how a shift in the CB portfolio allocation towards bonds issued by low-carbon companies can favor green firms in the market. Relying on optimal portfolio theory, we study how the CB might include the risk related to the environmental sustainability of firms in its balance sheet. In addition, we analyze the interactions between the neutral or green CB re-balancing policy and the evolutionary choice (i.e. by means of expo- nential replicator dynamics) of a population of firms that can decide to be green or not according to bonds borrowing cost. |
| Keywords: | Monetary Policy; Optimal Portfolio Allocation; Environmental Economics; Interacting Agents; Evolutionary Dynamics |
| JEL: | E52 E58 G11 C61 C73 Q50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:urb:wpaper:23_01&r=ene |
| By: | Anna Choi; Pureum Kim; Abraham Park |
| Abstract: | Causal studies on the effect of air quality on house prices, specifically focusing on a large metropolitan area, are rare and difficult to obtain because of potential endogeneity from residential sorting. In this study, we use the Aliso Canyon gas leak as a natural experiment to examine the effect of air quality on housing prices of Los Angeles City. Using a spatial difference-in-differences model, we estimate that houses within the 5-mile radius of the gas well experienced a 3% discount in price during the leak, and an additional 4.4% discount after the well was sealed and the air quality was restored. The decrease in price lasted beyond 18 months, with houses closer to the leak suffering higher discounts. We conclude that air quality degradation has a direct and longer term negative impact on house prices. |
| Keywords: | Air Quality; gas leak; Housing Price |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_71&r=ene |
| By: | Carozzi, Felipe; Roth, Sefi |
| Abstract: | We study the effect of urban density on the exposure of city dwellers to air pollution using data from the United States urban system. Exploiting geological features to instrument for density, we find an economically and statistically significant pollution-density elasticity of 0.14. We assess the health implications of these estimates and find that increased density in an average city leads to sizeable mortality costs. Our findings highlight the possible trade-off between reducing global greenhouse gas emissions, which is associated with denser cities according to prior empirical research, and preserving local air quality and human health within cities. |
| Keywords: | air pollutiuon; cities; density; health; UK Cities’ seed fund |
| JEL: | Q53 R11 |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117385&r=ene |
| By: | Rainald Borck; Philipp Schrauth |
| Abstract: | We use worldwide satellite data to analyse how population size and density affect urban pollution. We find that density significantly increases pollution exposure. Looking only at urban areas, we find that population size affects exposure more than density. Moreover, the effect is driven mostly by population commuting to core cities rather than the core city population itself. We analyse heterogeneity by geography and income levels. By and large, the influence of population on pollution is greatest in Asia and middle-income countries. A counterfactual simulation shows that PM2.5 exposure would fall by up to 36% and NO2 exposure up to 53% if within countries population size were equalized across all cities. |
| Keywords: | Population density, air pollution, gridded data |
| JEL: | Q53 R12 |
| Date: | 2022–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0008&r=ene |
| By: | Thibault Lemaire (UP1 UFR02 - Université Paris 1 Panthéon-Sorbonne - École d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Paul Vertier (Banque de France - Banque de France - Banque de France) |
| 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 passthrough of 24%, and a long-run pass-through of about 20%, higher than usually found in the literature. We also consider country-specific regressions to test whether estimated pass-through are related to countries' observable characteristics. |
| Keywords: | Commodity prices, food prices, energy prices, inflation, pass-through, Africa |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-03944888&r=ene |
| By: | Boysen-Hogrefe, Jens; Groll, Dominik; Hoffmann, Timo; Jannsen, Nils; Kooths, Stefan; Sonnenberg, Nils; Stamer, Vincent |
| Abstract: | Der deutschen Wirtschaft steht ein schwaches Winterhalbjahr bevor. Die hohen Energiepreise belasten die Kaufkraft der privaten Haushalte und dämpfen den privaten Konsum. Das welt- wirtschaftliche Umfeld ist schwach und liefert keine positiven Impulse für die Konjunktur. Seit dem Herbst haben sich die konjunkturellen Aus- sichten jedoch aufgehellt. Die Großhandels- preise für Gas und Strom sind in den vergange- nen Monaten deutlich gesunken - auch wenn sie sich nach wie vor auf hohem Niveau befin- den. Zudem sollen die Belastungen der privaten Haushalte und Unternehmen durch die hohen Energiekosten durch sogenannte Preisbrem- sen abgefedert werden. Insgesamt wird die In- flation im kommenden Jahr mit 5, 4 Prozent deutlich niedriger sein, als wir in unserer Herbst-Prognose erwartet hatten (8, 7 Prozent). Zwar werden die real verfügbaren Einkommen und in der Folge auch der private Konsum im kommenden Jahr wohl zurückgehen, allerdings wird das Minus deutlich geringer ausfallen als sich noch vor einigen Monaten abgezeichnet hatte. Im Ergebnis rechnen wir für 2023 nun mit einem leichten Anstieg des Bruttoinlandspro- dukts von 0, 3 Prozent (Herbst: -0, 7 Prozent). Im Jahr 2024 dürfte das Bruttoinlandsprodukt mit 1, 3 Prozent wieder etwas stärker zulegen (Herbst: 1, 7 Prozent). Der Arbeitsmarkt zeigt sich trotz der wirtschaftlichen Abkühlung robust, auch weil die Unternehmen nach wie vor hän- deringend nach Fachkräften suchen. Der Fi- nanzierungssaldo des Staates dürfte sich im kommenden Jahr aufgrund der Hilfspakete in Reaktion auf die Energiepreisanstiege deutlich verschlechtern und ein Defizit von rund 4 Pro- zent in Relation zum Bruttoinlandsprodukt auf- weisen. Mit dem Auslaufen der Hilfspakete wird sich das Defizit im Jahr 2024 wieder reduzieren. |
| Keywords: | Weltwirtschaft, Fortgeschrittene Volkswirtschaften, Schwellenländer, Energiekrise, Konjunktur, Deutschland, Fiskalpolitik & Haushalt, Arbeitsmarkt |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkie:268802&r=ene |
| By: | Gebrezgabher, Solomie (International Water Management Institute); Taron, Avinandan (International Water Management Institute); Odero, J.; Sanfo, S.; Ouedraogo, Ramata (International Water Management Institute); Salack, S.; Diarra, K.; Ouedraogo, S.; Ojungobi, K. |
| Keywords: | Circular economy; Bioeconomy; Business models; Energy recovery; Agricultural wastes; Biogas; Fertilizers; Resource recovery; Waste management; Public-private partnerships; Markets; Value chains; Technology; Financial analysis; Environmental impact; Health hazards; Case studies |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:bosers:h051646&r=ene |
| By: | Vázquez, Cristina |
| Abstract: | El transporte constituye un elemento fundamental para el desarrollo de las ciudades. Tanto a nivel mundial como nacional, las urbes destacan por su importancia poblacional y económica. Es reconocido que las ciudades, además de generar externalidades positivas, provocan importantes impactos ambientales. Así, en la búsqueda de soluciones de movilidad urbana, sobre todo relacionadas con el transporte público, es necesario analizar el estado actual de la industria mexicana de autobuses, identificando las ventajas y retos en materia de la fabricación de unidades libres de emisiones. En este estudio se explora la viabilidad de apostar a un transporte público libre de emisiones, así como las implicaciones de un cambio de tal naturaleza para la industria local. Se prevé que esta tendencia sea progresiva y de largo plazo, y se consideran como elementos fundamentales el liderazgo del Gobierno y su coordinación con la industria para la generación de oportunidades locales ante los elevados requerimientos de inversión y financiamiento. |
| Keywords: | CIUDADES, TRANSPORTE URBANO, TRANSPORTE DE PASAJEROS, AUTOBUSES, INNOVACIONES TECNOLOGICAS, TRANSPORTE SOSTENIBLE, DESARROLLO SOSTENIBLE, CITIES, MEDIO AMBIENTE, LUCHA CONTRA LA CONTAMINACION, EMISIONES DE GASES DE EFECTO INVERNADERO, CITIES, URBAN TRANSPORT, PASSENGER TRANSPORT, BUSES, TECHNOLOGICAL INNOVATIONS, SUSTAINABLE TRANSPORT, SUSTAINABLE DEVELOPMENT, ENVIRONMENT, POLLUTION CONTROL, GREENHOUSE GAS EMISSIONS |
| Date: | 2022–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:48638&r=ene |
| By: | Andrianady, Josué R.; Rajaonarison, Njakanasandratra R.; Rasolofomanana, Gherzino H. |
| Abstract: | The objective of this work is to analyze the impacts of the war between Russia and Ukraine on the Malagasy economy. The main channel of transmission of the shock resulting from this tension is the variation in the price of oil, which will generate a deterioration in the balance of payments and a general increase in the price of raw materials in the energy sector and the transport of goods, which remains dependent on oil. In response, diversifying the sources of imports of essential goods and commodities such as energy and food seems attractive in the short term by strengthening intra-African trade. In the longer term, the energy transition is no longer an option but a necessity, as the country has the necessary potential in this area. Nevertheless, the path remains perilous in the sense that it requires significant capital. |
| Keywords: | Russia-Ukraine conflict, international economy, Madagascar |
| JEL: | F16 G00 |
| Date: | 2022–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116463&r=ene |
| By: | Mozgovaya Oxana (The Russian Presidential Academy Of National Economy And Public Administration); Temnaya Olga (The Russian Presidential Academy Of National Economy And Public Administration); Vasily Kuznetsov (The Russian Presidential Academy Of National Economy And Public Administration) |
| Abstract: | This paper presents the results of the study "Research of approaches to the consolidated interregional tariff formations implemented as part of the common state pricing policy in electricity industry”. The authors study the regional differentiation of electricity grid tariffs in Russia and reveal the principles of the consolidated interregional tariff formation. According to the results of the research, the electricity price differentiation factors occurring at the different pricing levels have been revealed. For non-household customers, the main factor of electricity price differentiation is the electricity network transmission tariff differentiation, which accounts for a high percentage of the electricity price structure. The regional differentiation between max and min electricity network tariffs could be as high as 400 to 800%. Practical recommendations for abandoning the electricity price differentiation as part of the implementation of the consolidated interregional tariff formation have been established. |
| Keywords: | interregional tariff |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w2022039&r=ene |
| By: | Robin Lindsey; Ioannis Tikoudis; Katherine Hassett |
| Abstract: | This report takes stock of scientific findings to date regarding the distributional effects of policies discouraging car use in urban areas. These policies include cordon tolls, distance-based charges, fuel taxes, parking measures and public transport subsidies. The report describes the mechanisms responsible for the distributional effects of these policies and offers insights regarding how such policies can be designed to minimise adverse equity outcomes. It also provides recommendations regarding the design and procedural modifications that standard instruments require in order to be more acceptable to the public and to governments. Finally, it identifies a number of issues that warrant further research in the pursuit of greater equity in the outcomes of urban road transport policies. |
| Keywords: | environmental externalities, fuel tax, income distribution, inequality, road pricing |
| JEL: | D63 H23 Q52 Q54 R40 Q56 |
| Date: | 2023–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:211-en&r=ene |
| By: | Grassi, Stefano (University of Rome Tor Vergata, Italy); Ravazzolo, Francesco (BI Norwegian Business School); Vespignani, Joaquin (Tasmanian School of Business & Economics, University of Tasmania); Vocalelli, Giorgio (University of Rome Tor Vergata, Italy) |
| 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 timevarying 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 |
| URL: | http://d.repec.org/n?u=RePEc:tas:wpaper:47658&r=ene |
| By: | IDA Takanori; ISHIHARA Takunori; ITO Koichiro; KIDO Daido; KITAGAWA Toru; SAKAGUCHI Shosei; SASAKI Shusaku |
| Abstract: | We develop an optimal policy assignment rule that integrates two distinctive approaches commonly used in economics—targeting by observable characteristics and targeting through self-selection . Our method uses experimental or quasi-experimental data to identify who should be treated, untreated, and who should self- select to achieve a policymaker’s objective. Applying this method to a randomized controlled trial on a residential energy rebate program, we find that targeting that leverages both observable data and self- selection outperforms conventional targeting for a standard utilitarian welfare function and welfare functions that balance the equity-efficiency trade-off. We highlight that the LATE framework (Imbens and Angrist, 1994) can be used to investigate the mechanism behind our approach. By introducing new estimators called the LATEs for takers and non-takers , we show that our method allows policymakers to identify whose self-selection would be valuable and harmful to social welfare. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23011&r=ene |
| By: | Buccella, Domenico; Fanti, Luciano; Gori, Luca |
| Abstract: | In a three-country model in which export countries adopt environmental policies, this note analyses how abatement ("green") subsidy can become a potential strategic trade policy tool. When governments set the optimal policy tool considering their local environmental damages, a rich set of equilibria arise. In contrast to the standard result, it is shown that subsidising pollution abatement can 1) emerge as a Pareto-efficient equilibrium of the game; and 2) be the only feasible environmental policy when environmental awareness is low, irrespective of the technological efficiency. Therefore, "green" subsidies can lead to a win-win situation. |
| Keywords: | Abatement subsidy, Exports, International duopoly |
| JEL: | H23 F13 L13 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1240&r=ene |
| By: | Krüger, Jens; Tarach, Moritz |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:136458&r=ene |
| By: | Konrad Hedemann; Bing Zhu; Werner Lang |
| Abstract: | Green leases in commercial real estate have gained widespread attention from real estate investors in recent years. As an appendix to the lease contract, a green lease is designed to reduce energy consumption in buildings and ensure compliance with climate targets in their markets. Using a unique database, we study 7, 246 leases in 376 commercial assets to determine whether green leases lead to higher investment returns. Using a propensity score matching method, we find significant green lease premiums on investment returns in commercial assets. A 1% increase in green leases raises the rent by 0.23% and the net asset value by 0.38%, and decreases the operational expenditure ratio by 0.02% on average. The highest premiums were observed in Germany, with increases in rent of 0.40%, and in France, where the net asset value increased by 0.56%. The highest premium on leakage was 0.02%, in Germany, and the highest premium on yield was -0.01% in France. |
| Keywords: | commercial real estate; Green Leases; investment return; Tenant Engagement |
| JEL: | R3 |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:2022_127&r=ene |
| By: | Saúl de los Santos Gómez, José |
| Abstract: | Los autobuses eléctricos se presentan como una alternativa viable a los problemas de contaminación y tráfico que aquejan a las grandes ciudades. A medida que más urbes se interesan por adquirir flotas de autobuses eléctricos, crece el mercado de consumo y las empresas fabricantes expanden sus operaciones mundiales, por lo que surge una oportunidad para los países que desean incursionar en la fabricación de estos autobuses, así como de sus sistemas de apoyo y componentes clave. El presente documento tiene por objeto presentar los retos y oportunidades que enfrentan México y otros países de América Latina, entre ellos, la Argentina, el Brasil y Colombia, para tener una participación significativa en la fabricación de autobuses eléctricos. Por medio de un modelo de factibilidad técnica y económica que utiliza referentes mundiales, se aborda el potencial y la viabilidad de tres modelos de producción mediante los cuales los países antes mencionados pueden incursionar en esta industria. |
| Keywords: | TRANSPORTE PUBLICO, AUTOBUSES, ENERGIA ELECTRICA, VEHICULOS ELECTRICOS, FABRICACION INDUSTRIAL, EVALUACION, POLITICA INDUSTRIAL, DESARROLLO SOSTENIBLE, INNOVACIONES TECNOLOGICAS, PUBLIC TRANSPORT, BUSES, ELECTRIC POWER, ELECTRIC VEHICLES, MANUFACTURING, EVALUATION, INDUSTRIAL POLICY, SUSTAINABLE DEVELOPMENT, TECHNOLOGICAL INNOVATIONS |
| Date: | 2022–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:48629&r=ene |
| By: | Tanguy Bonnet |
| Abstract: | This paper investigates the links between strategic minerals and foreign direct investment. I contribute to the literature on the FDI-resource curse by studying strategic minerals, the fundamental raw material of the energy transition.The paper presents a precise overview of strategic minerals, their uses, and the geographical distribution of mineral production. This presentation highlights the novelties and peculiarities of strategic minerals which, due to their plurality, complexity and interdependencies, represent an energy commodity quite different from hydrocarbons, but of capital interest for the needs of the energy transition. The econometric study in panel data at the macroeconomic level allows to find the results of the literature, namely a negative relationship between foreign direct investments and the presence of hydrocarbons, the FDI-resource curse. The core of my results contributes to the literature by showing a positive relationship between FDI and the presence of strategic minerals. Strategic minerals thus escape the FDI-resource curse. These results can be explained by the new and particular characteristics of strategic minerals which represent new stakes and do not obey the same rules as hydrocarbons. The paper therefore discusses the ambiguous economic consequences of this positive relationship between minerals and foreign investment.Finally, the paper raises the consequences in terms of geopolitical strategies around strategic minerals issues, in terms of production, needs and energy sovereignty, and highlights China's global strategy and foresight. |
| Keywords: | strategic minerals, foreign direct investments, resource curse |
| JEL: | Q4 F21 C23 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2023-7&r=ene |
| By: | Quiroga Barrera Oro, Martín J. |
| Abstract: | Las ciudades son las principales responsables de las emisiones de gases y el transporte es uno de los sectores de mayor incidencia. Ante este escenario, la electrificación de vehículos se presenta como una oportunidad para reducir dichas emisiones y mejorar la calidad de vida en los entornos urbanos y de sus habitantes. Asimismo, puede favorecer la recuperación económica, generar importantes ahorros, crear nuevos puestos de trabajo y contribuir al logro de los objetivos de la Agenda 2030 para el Desarrollo Sostenible y el Acuerdo de París, entre otros compromisos. En este estudio se recuperan algunas experiencias de pruebas piloto de unidades eléctricas en la Argentina y se ofrece un análisis del sector automotor del país, que abastece a la totalidad del mercado de autobuses urbanos. Además, se identifican tanto barreras y desafíos como elementos posibilitadores y oportunidades para expandir la producción de tecnologías más inocuas para el medio ambiente. También se discute la viabilidad de la actualización y se delinean posibles escenarios de renovación de la flota urbana. Por último, se recomiendan una serie de propuestas de políticas públicas e iniciativas que estimulen el desarrollo del sector productivo y la transición hacia una movilidad urbana más sostenible. |
| Keywords: | CIUDADES, TRANSPORTE URBANO, TRANSPORTE DE PASAJEROS, AUTOBUSES, INNOVACIONES TECNOLOGICAS, DESARROLLO INDUSTRIAL, ENERGIA ELECTRICA, TRANSPORTE SOSTENIBLE, AGENDA 2030 PARA EL DESARROLLO SOSTENIBLE, COVID-19, PANDEMIAS, LUCHA CONTRA LA CONTAMINACION, EMISIONES DE GASES DE EFECTO INVERNADERO, CITIES, URBAN TRANSPORT, PASSENGER TRANSPORT, BUSES, TECHNOLOGICAL INNOVATIONS, INDUSTRIAL DEVELOPMENT, ELECTRIC POWER, SUSTAINABLE TRANSPORT, 2030 AGENDA FOR SUSTAINABLE DEVELOPMENT, COVID-19, PANDEMICS, POLLUTION CONTROL, GREENHOUSE GAS EMISSIONS |
| Date: | 2022–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:48637&r=ene |
| By: | Yusifzada, Tural |
| Abstract: | This research is the first study that analyzes the effects of climate change-related factors on the inflation environment in Azerbaijan during 2005-2020 and forecasts annual inflation for the 2021-2030 period. For this purpose, considering the possible long-run cointegration relation among variables and limited historical observations, the chain impact of temperature on agricultural producer prices is analyzed through the BVAR model. Additionally, the transition requirements to the effects of green energy on inflation are examined through the exchange rate pass-through. Since the aim of the research is to reveal climate change’s impact on the long-run trend of inflation, the study generates two climate scenarios for the 2021-2030 period and analyzes the inflation difference at the end of the horizon. According to the model results, climate change’s contribution to inflation is expected to be 1.3 percentage points (pp) in the long run with the baseline scenario, where climate-related variables follow their historical trends. On the other hand, climate contribution to inflation is estimated to be 2.2 pp in the worst scenario of climate change, where 1.2 °C additional temperature anomaly deteriorates the trends. The results imply that climate change is not only the determinant of seasonality but the trend of inflation. In light of these results, the paper highlights the importance of a well-developed climate action plan set by the government and monetary incentives for transitioning to a green environment set by the Central Bank of the Republic of Azerbaijan. This research is the first study that analyzes the effects of climate change-related factors on the inflation environment in Azerbaijan during 2005-2020 and forecasts annual inflation for the 2021-2030 period. For this purpose, considering the possible long-run cointegration relation among variables and limited historical observations, the chain impact of temperature on agricultural producer prices is analyzed through the BVAR model. Additionally, the transition requirements to the effects of green energy on inflation are examined through the exchange rate pass-through. Since the aim of the research is to reveal climate change’s impact on the long-run trend of inflation, the study generates two climate scenarios for the 2021-2030 period and analyzes the inflation difference at the end of the horizon. According to the model results, climate change’s contribution to inflation is expected to be 1.3 percentage points (pp) in the long run with the baseline scenario, where climate-related variables follow their historical trends. On the other hand, climate contribution to inflation is estimated to be 2.2 pp in the worst scenario of climate change, where 1.2 °C additional temperature anomaly deteriorates the trends. The results imply that climate change is not only the determinant of seasonality but the trend of inflation. In light of these results, the paper highlights the importance of a well-developed climate action plan set by the government and monetary incentives for transitioning to a green environment set by the Central Bank of the Republic of Azerbaijan. |
| Keywords: | inflation, climate, fossil fuel, green energy, BVAR, forecasting |
| JEL: | C32 E31 E37 E58 Q54 |
| Date: | 2022–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116522&r=ene |
| By: | Samaniego, Joseluis; Lorenzo, Santiago; Rondón Toro, Estefani; Krieger Merico, Luiz F.; Herrera Jiménez, Juan; Rouse, Paul; Harrison, Nicholas |
| Abstract: | En un contexto de alta vulnerabilidad y tres crisis que afectan de manera simultánea a América Latina y el Caribe, es necesaria una transformación de los modelos de desarrollo en la región que conduzca hacia una transición sostenible. En ese proceso, las políticas nacionales y locales deben ser capaces de aprovechar al máximo el potencial de la acción climática, a través de la adopción de nuevas tecnologías, la innovación, la reorganización productiva y la identificación de sinergias. Por esta razón, las soluciones basadas en la naturaleza y las medidas y tecnologías de remoción de dióxido de carbono cobran especial relevancia para contribuir al cumplimiento de las metas climáticas. En el presente documento, se examinan las oportunidades y los retos de la implementación a gran escala de estas medidas en la región, haciendo hincapié en la necesidad de acelerar los esfuerzos ya realizados, ampliar la frontera de investigación y gestionar los riesgos. Los resultados permiten reconocer las limitaciones existentes y los vínculos entre objetivos, políticas y herramientas, así como los cobeneficios que conlleva la implementación de dichas medidas. |
| Keywords: | MEDIO AMBIENTE, DESARROLLO SOSTENIBLE, ANHIDRIDO CARBONICO, PROTECCION AMBIENTAL, EMISIONES DE GASES DE EFECTO INVERNADERO, INNOVACIONES TECNOLOGICAS, SUELOS, DESERTIFICACION, DEFORESTACION, POLITICA AMBIENTAL, ESTUDIOS DE CASOS, ENVIRONMENT, SUSTAINABLE DEVELOPMENT, CARBON DIOXIDE, ENVIRONMENTAL PROTECTION, GREENHOUSE GAS EMISSIONS, TECHNOLOGICAL INNOVATIONS, SOILS, DESERTIFICATION, DEFORESTATION, ENVIRONMENTAL POLICY, CASE STUDIES |
| Date: | 2022–12–26 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:48615&r=ene |