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on Energy Economics |
| By: | Stern, Nicholas; Stiglitz, Joseph E. |
| Abstract: | Contrary to much of the conventional wisdom, taking stronger actions on climate change may enhance economic growth, even as conventionally measured, but even more so, in terms of societal well-being. We identify the flaws in the models and analyses which contend that there must be a trade-off and explain the mechanisms and dynamic forces which have the potential to enhance growth. Critically, there are numerous market failures that result in suboptimal economic performance. We explain how addressing climate change reduces the bite of these failures and enhances the incentives and political will to address them. We identify packages of policies that alleviate market failures, enhance growth, and reduce carbon emissions. Finally, we argue that the green transition is coming at a time when, both because of persistent deficiencies of aggregate demand and advances in technology, including artificial intelligence and robotization, the macroeconomic opportunity costs of strong climate actions may be especially low and the benefits particularly high. |
| JEL: | O40 O49 Q58 |
| Date: | 2023–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118100&r=ene |
| By: | Adélaïde Fadhuile; Daniel Llerena; Béatrice Roussillon |
| 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: | Flexibility, Randomized Field Experiment, Energy Conservation, Nudges |
| JEL: | D9 C93 Q41 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2023-01&r=ene |
| By: | Amro Elshurafa; Marie Petitet; Frank Felder (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The power generation sectors of many countries are undergoing a transformation through the deployment of renewable energy (RE) to address climate change issues. Saudi Arabia, for example, intends to retire liquid fuels in its power mix and develop its renewable capacity to meet its 50% renewable target by 2030 (Vision 2030 2022; Saudi & Middle East Green Initiatives 2023). |
| Keywords: | Battery storage, Electricity trade, Business models, Climate change |
| Date: | 2023–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp01&r=ene |
| By: | Cerniauskas, Simonas; Fulton, Lewis; Ogden, Joan |
| Keywords: | Engineering, Social and Behavioral Sciences, transportation fuel, hydrogen, transportation infrastructure, pipeline |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt1z0325v2&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. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:bny:wpaper:0113&r=ene |
| By: | Kilian, Lutz; Zhou, Xiaoqing |
| Abstract: | We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. These differences, which are primarily driven by variation in the cost of producing and distributing gasoline, create cross-sectional dispersion in gasoline price growth in response to an aggregate oil price shock. We find that the elasticity was stable near -0.3 until the end of 2014, but subsequently rose to about -0.2. Our estimates inform the recent debate about gasoline-tax holidays and policies to reduce carbon emissions. |
| Keywords: | Price elasticity of gasoline demand, pass-through, gasoline tax, gasoline supply, identification, IV, cross-section |
| JEL: | D12 L71 Q31 Q41 Q48 R48 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:685&r=ene |
| By: | Reinhard Ellwanger; Hinnerk Gnutzmann; Piotr Śpiewanowski |
| Abstract: | Commodity markets are linked through international trade but are separated by heterogeneous regulations and input markets. We investigate theoretically and empirically how regional, as opposed to global, cost shocks pass through into global prices. Capacity constraints mitigate the output response to regional cost shocks in the short run. Once constraints bind, the pass-through of a cost increase is enhanced while for cost decreases it drops to zero. We study the market for ammonia, a commodity produced largely from natural gas, to highlight the nonlinearity of the cost pass-through and its implications for unilateral climate policies. |
| Keywords: | Climate change; Econometric and statistical methods; Inflation and prices; International topics |
| JEL: | L13 L65 Q54 Q40 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-16&r=ene |
| By: | Yoosoon Chang (Indiana University, Department of Economics); Hilde C. Bjornland (BI Norwegian Business School); Jamie L. Cross (BI Norwegian Business School) |
| Abstract: | This paper proposes a new mixed vector autoregression (MVAR) model to examine the relationship between aggregate time series and functional variables in a multivariate setting. The model facilitates a re-examination of the oil-stock price nexus by estimating the effects of demand and supply shocks from the global market for crude oil on the entire distribution of U.S. stock returns since the late 1980s. We show that the MVAR effectively extracts information from the returns distribution that is more relevant for understanding the oil-stock price nexus beyond simply looking at the first few moments. Using novel functional impulse response functions (FIRFs), we find that oil market demand and supply shocks tend to increase returns, reduce volatility, and have an asymmetric effect on the returns distribution as a whole. In a value-at-risk (VaR) analysis we also find that the oil market contains important information that reduces expected loss, and that the response of VaR to the oil market demand and supply shocks has changed over time. |
| Keywords: | Oil market, stock market, oil-stock price nexus, functional VAR. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:inu:caeprp:2023005&r=ene |
| By: | Kilian, Lutz; Zhou, Xiaoqing |
| Abstract: | Consumers purchase energy in many forms. Sometimes energy goods are consumed directly, for instance, in the form of gasoline used to operate a vehicle, electricity to light a home, or natural gas to heat a home. At other times, the cost of energy is embodied in the prices of goods and services that consumers buy, say when purchasing an airline ticket or when buying online garden furniture made from plastic to be delivered by mail. Previous research has focused on quantifying the pass-through of the price of crude oil or the price of motor gasoline to U.S. inflation. Neither approach accounts for the fact that percent changes in refined product prices need not be proportionate to the percent change in the price of oil, that not all energy is derived from oil, and that the correlation of price shocks across energy markets is far from one. This paper develops a vector autoregressive model that quantifies the joint impact of shocks to several energy prices on headline and core CPI inflation. Our analysis confirms that focusing on gasoline price shocks alone will underestimate the inflationary pressures emanating from the energy sector, but not enough to overturn the conclusion that much of the observed increase in headline inflation in 2021 and 2022 reflected non-energy price shocks. |
| Keywords: | Headline, core, oil, gasoline, diesel, jet fuel, natural gas, coal, electricity |
| JEL: | E31 E52 Q43 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:686&r=ene |
| By: | María T. Verónica Culós; María Florencia Gabrielli; Marcos Herrera Gómez |
| Abstract: | The liquid fuels market in Argentina is characterized by a high level of concentration, especially in local geographic areas. This paper studies the demand of the liquid fuels wholesale chain in Argentina, using the discrete choice approach, based on the premise that different firms offer differentiated goods, by virtue of the intrinsic characteristics of the good, and that such differentiation gives them the power to set prices above marginal production costs. The difference between prices and marginal costs determines the firms market power. Using a novel dataset, we provide new empirical evidence that quantifies market power across firms and regions. |
| JEL: | C52 L13 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4554&r=ene |
| By: | Afaf Zarkik |
| Abstract: | L’invasion russe de l'Ukraine a incité l'Union Européenne, en coordination avec d’autres puissances mondiales, à monter en urgence une réponse coordonnée de sanctions sans précédent. La plus emblématique d'entre elles est l'embargo partiel contre le pétrole et autres produits raffinés russes, qui signifie en essence la transition du commerce pétrolier d’une logique économique vers une logique géopolitique. D'où la montée en flèche des cours du pétrole et d'autres matières premières. Où iront les excédents de barils russes ? La compensation serat- elle au rendez-vous pour satisfaire les besoins énergétiques de l’Europe ? Jusqu’où iront les cours du brut ? Le présent Policy Brief se propose d’apporter des éléments de réponse à ces interrogations. |
| Date: | 2022–08 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb47-22&r=ene |
| By: | Jean Imbs; Laurent Pauwels |
| Abstract: | We propose a data-based approximation of the effects of trade sanctions. We validate the approximation by comparing it with exact responses simulated from a canonical multi-country multi-sector model. The approximation is palatable for a broad range of elasticities of substitution, except for extremely low ones. It is based on a decomposition of high order trade according to destination or inputs markets and can readily be computed on the basis of international input-output data. As such it provides a practical shortcut to evaluating the consequences of trade sanctions without having to make difficult calibration choices. We implement our approximation to evaluate the consequences of trade sanctions between Europe and Russia. Our approximated effects are within the range of existing estimates, but they mask vast asymmetries. First, the effects of sanctions are about fifteen times larger on Russia than on Europe. Second, the effects within Europe are enormously asymmetric, with much larger consequences on ex-“satellite†countries of the Soviet Union than on large Western European economies. We then adapt our approach to show that the most affected European countries do not typically have access to substitute markets and are in fact highly dependent on Russia. We show that this extreme dependence on Russia is at least partly explained by the existence of specific energy transporting infrastructure (pipelines) that appear to constrain tightly the production of electricity in those heavily affected East European economies. These findings illustrate the practical potentiality of our approximation in a variety of different contexts. |
| Keywords: | European Energy Imports, Russian Sanctions, Economic Consequences of Sanctions, Global Value Chain |
| JEL: | F14 F42 F51 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-16&r=ene |
| By: | Braakmann, Nils (Newcastle University); Dursun, Bahadir (Newcastle University); Pickard, Harry (Newcastle University) |
| Abstract: | How do private consumers adapt to changes to energy prices, in particular do they invest in energy-saving measures? We study this question in the context of the rapid rise in energy prices caused by the Russian invasion of Ukraine in February 2022 and the demand for energy efficiency in the UK housing market. We find that the housing market barely reacted to a 60% increase in the price of energy. This finding holds in multiple contexts and across various robustness checks. Supplementary survey evidence suggests that people believe the energy price increases are temporary, not permanent. |
| Keywords: | gas prices, energy efficiency, property markets |
| JEL: | Q35 Q41 Q51 R31 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15959&r=ene |
| By: | Nicolás Bertholet; Gabriel Montes Rojas; Fernando Toledo |
| Abstract: | Este trabajo intenta analizar el efecto de los shocks de precios de alimentos y energía sobre la inflación en un panel de 52 países para el periodo 1995 2020 mediante diferentes técnicas econométricas basadas en paneles dinámicos paneles autorregresivos. En primer, se utilizarán los estimadores de GMM en diferencias y sistema GMM. Posteriormente y dado el problema, señalado por Roodman (2009) de proliferación de instrumentos vamos a abordar diferentes formas de solucionarlo. Como chequeo de robustez, se estimará un modelo de datos de panel vectorial autorregresivo (modelo PVAR) para 40 países durante el período 1995-2020. El análisis de las funciones de impulso-respuesta muestra efectos similares de los shocks energéticos (petróleo crudo y gas natural) y alimentarios en la tasa de inflación de la muestra. Un aumento del 10 % en el precio del petróleo produce un aumento del 0, 1 % en la tasa de inflación en los dos primeros trimestres, desapareciendo gradualmente. El efecto acumulativo ronda el 0, 5 %. Por otro lado, un shock inflacionario de alimentos de 10 % implica un aumento de 0, 6 % en el primer trimestre, que se vuelve no significativo en períodos posteriores. En este caso, entonces, hay un traspaso inmediato a la tasa de inflación local sin efectos de retraso. También pretendemos diferenciar no solo el impacto heterogéneo del incremento en los diferentes precios de este tipo de bienes sino también si existen asimetrías entre exportadores e importadores netos de commodities. Cuando dividimos la muestra entre exportadores e importadores netos para ambos shocks energéticos, no hay un patrón claro para poder separar los efectos en los exportadores netos e importadores netos de alimentos. Sin embargo, encontramos que el efecto acumulativo sobre la inflación se aplica principalmente a los importadores netos, aunque para los exportadores netos también hay un efecto estadísticamente significativo. De manera similar, encontramos que ambos shocks para ambas submuestras tienen un efecto positivo sobre el producto para el primer trimestre, aunque se vuelven negativos para los siguientes. Además, el efecto de apreciación es mayor para los exportadores netos que para los importadores netos. |
| JEL: | C23 E31 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4541&r=ene |
| By: | Matteo Gasparini (University of Oxford); Peter Tufano (Harvard Business School, General Management Unit) |
| Abstract: | The urgency and the magnitude of climate change will affect every aspect of our economies, societies, and planet. The academic finance research has begun to study the financial implications of global warming, although this body of literature is small. The field has distinct geographic tilts, draws young researchers, and much remains outside of the traditional finance domain. We explore, quantitatively and qualitatively, the emerging field of climate finance. We discuss its relevance for finance research and teaching and provide implications for financial economist and practitioners—in particular the need to incorporate this massive externality in valuation and risk analyses. |
| Keywords: | Climate Finance; Climate Change; Finance; Finance Academia; Greenhouse Gas; Sustainable Finance; Financial Decisions; Educational Finance |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:hbs:wpaper:23-057&r=ene |
| By: | Bert Van Roosebeke (International Association of Deposit Insurers); Ryan Defina (International Association of Deposit Insurers) |
| Abstract: | Drawing on a survey amongst IADI Members, this IADI Survey Brief takes stock of the incorporation of climate related issues in fund management by deposit insurers. It provides a snapshot of current deposit insurer practices, identifies deposit insurers’ expectations, and explores possibilities for future developments. |
| Keywords: | deposit insurance, bank resolution, ESG |
| JEL: | G21 G33 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:awl:surbri:5&r=ene |
| By: | Pérez, Rafaela; Ruiz, Jesús; Guinea, Laurentiu |
| Abstract: | We examine the asymmetric effects of financial instability shocks and their volatility on the conventional and renewable energy mix. We utilize Chicago Board Options Exchange (CBOE) Volatility Index (VIX) and the Volatility-of-Volatility index (vVIX) in a nonlinear autoregressive distributed lag (NARDL) model to examine the short- and long-term asymmetry effects across energy mix in Europe, the US, and China. Furthermore, we examine the dynamic long-run asymmetry of financial instability shocks on the energy sector and how this relationship evolves over time. Our estimation indicate that the long-term effects over the energy mix are more significant than their short-term effects. The study found that the responses to the volatility of financial instability, vVIX, are different from the responses to financial instability itself, VIX. The impact is more noticeable on changes in the vVIX than on VIX. In the US, there is a higher inclination to adopt renewable energy during periods of lower volatility, whereas Europe tends to rely on natural gas when financial instability is high but decreases its use when volatility is low. China shows symmetrical responses for gas, oil, and coal but has asymmetrical responses for renewable energy, with a negative response to high financial stability and also negative response to high uncertainty volatility. Regarding dynamic asymmetry, we notice that for oil, the long-run asymmetry is similar in both Europe and the US, with the US showing a high level of stability. Similarly, coal demonstrates high stability in both Europe and the US, while China experienced a period of instability from 2017 to 2020. Moreover, in Europe, the stable periods for gas coincide with the unstable ones in the US. However, for renewable sources, the instability periods coincide for Europe and US, but China exhibits high stability in this regard. |
| Keywords: | Asymmetries; Financial Instability; Nardl; Renewable Energy; Vix; Volatility-Of-Volatility |
| JEL: | C12 C32 C58 G01 G13 G17 Q42 |
| Date: | 2023–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:36916&r=ene |
| By: | Ozili, Peterson K |
| Abstract: | This paper analyses the association between financial inclusion and environmental sustainability. The study uses Pearson correlation analysis to analyse the association between financial inclusion and environmental sustainability. The level of financial inclusion was measured using two supply-side financial inclusion indicators: the number of ATMs per 100, 000 adults and the number of commercial bank branches per 100, 000 adults. Environmental sustainability was measured using two indicators: the environmental policy stringency index and the environmentally adjusted multifactor productivity growth index. The study finds that financial inclusion is positively correlated with environmental sustainability particularly in non-EU countries. The result implies that financial inclusion programs and efforts in non-EU countries complement environmental sustainability efforts toward achieving the United Nations sustainable development goals (SDGs). The findings also reveal a significant and negative association between environmental policy stringency and environmentally adjusted multifactor productivity growth particularly in EU member-countries and European countries, implying that strict environmental protection policies may harm green growth in EU and European countries. |
| Keywords: | Environment, sustainability, sustainable development, financial inclusion, access to finance, supply-side financial inclusion |
| JEL: | G21 Q01 Q54 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116586&r=ene |
| By: | Wojewska, Aleksandra; Staritz, Cornelia; Tröster, Bernhard; Leisenheimer, Luisa |
| Abstract: | The eco-technological fix to the climate crisis renders certain resources, such as lithium, as "critical". We argue that criticality is actively produced in socio-technological processes, involving three interrelated levels - demand, supply and price perceptions, policies linked to green extractivism, and underlying narratives around the role of commodities in development. Criticality is interrelated with firm strategies in global production networks (GPNs) as well as financial actors' strategies, legitimizing extractivism for sustainability transformations. We highlight the role of financial actors and interests in enabling lithium expansion and assess two channels through which financial actors shape producer strategies and GPNs - financing and price-determination. Driven by criticality, financial actors mobilize "green" investment stories along the sustainability-finance nexus. This enables the shifting of extractive frontiers through funding new projects and creates variable price-setting regimes linked to derivative markets. Financial interests introduce an additional speculative momentum to lithium extraction, contributing to accelerating boom-bust patterns and short-termism. Methodologically, the paper draws on sector data, industry and company reports, as well as semi-structured interviews with lithium sector and financial actors in London, Switzerland, Chile and Zimbabwe. |
| Keywords: | green extractivism, lithium, criticality of resources, sustainability-finance nexus, global production networks |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:oefsew:71&r=ene |
| By: | André Fontana |
| Abstract: | En tenant compte de l’influence de la masse d’un véhicule sur l’énergie dépensée au train roulant, l’incidence d’un surpoids lié à l’installation de batteries, la consommation d’énergie nette est évaluée. En se basant sur des consommations moyennes d’essence, des rendements des moteurs, de ceux du système de charge des batteries en des rendements des productions et transports d’énergie, l’impact environnemental du « tout électrique » montre un accroissement non négligeable des énergies brutes consommées. |
| Keywords: | voiture électrique; énergie; Environnement |
| Date: | 2023–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:sol:ppaper:2013/357033&r=ene |
| By: | Afia Malik (Pakistan Institute of Development Economics); Amena Urooj (Pakistan Institute of Development Economics) |
| Abstract: | In a perfectly competitive market, electricity is priced at the Marginal Cost (MC); MC pricing guarantees economic efficiency (Gunatilake, et al., 2008). In other words, efficient electricity tariffs consider all power supply costs. To a great degree, it also accounts for capital investments for future expansion and up-gradation (Kojima, et al., 2014). In a free market, market forces of demand and supply pushed for MC recovery. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pid:kbrief:2022:81&r=ene |
| By: | Billimoria, F.; Simshauser, P. |
| Abstract: | Challenges to the term financing of standalone storage in energy-only electricity markets relate to the difficulty of obtaining long-tenor contracts given multiple volatile revenue streams. Government and central agency-initiated contracting and procurement of storage has garnered interest as a means of catalysing adoption and learning curve effects, particularly given the required scale and pace of the decarbonisation objective. Given the complexity of storage operations and multiple streams of value, standard contract forms are yet to emerge. While there is flexibility in the design of forward contract arrangements, flow on effects of design on incentive compatibility in dispatch, risk-trading and investment represent a critically important avenue of investigation. This article establishes six principles for government-initiated contracting and examines the incentive compatibility of storage contract designs. We find that that preferences for structural simplicity in contract design could introduce incentive incompatibility without careful consideration of the interactions between storage operations and investment. |
| Keywords: | Electricity markets, risk trading, project finance, renewables, energy storage |
| Date: | 2023–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2322&r=ene |
| By: | Abdulelah Darandary; Jeyhun Mikayilov; Salaheddine Soummane (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Evaluating the potential outcomes of energy price reforms is essential for policymakers to assess their effectiveness. In 2016 and 2018, the Saudi government enacted two waves of energy price reforms to curb historically fast-growing electricity demand. We quantify the effects of these measures on regional fuel consumption and carbon emissions. |
| Keywords: | Agent based modeling, Analytics, Appllied research, Autometrics |
| Date: | 2023–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp14&r=ene |
| By: | Müller, Melanie; Saulich, Christina; Schöneich, Svenja; Schulze, Meike |
| Abstract: | German and European businesses are highly dependent on metals. Demand for these raw materials is expected to grow even further as they will be needed for the green energy and electric mobility transition, digitalisation and other emerging technologies. Geopolitical developments influence security of supply. China's central role in mineral supply chains is a major factor of uncertainty in this context. The European Union has set ambitious sustainability targets. Implementing these in complex multi-tier metal supply chains is no easy matter, given the magnitude of environmental and human rights risks. Nevertheless, sustainability should not be sacrificed for security of supply. Instead, the European Union should pursue a strategic raw materials policy that reconciles the demands of both. The two biggest challenges in sustainability governance are: firstly, the diversity of standards and their inconsistent implementation and enforcement; and secondly, power asymmetries and lack of transparency along metal supply chains. A sustainable raw materials policy must seek to reduce dependency through strategic diversification and partnerships with countries that share European values. Transparency-enhancing measures and a regulatory "smart mix"will be decisive elements. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swprps:12023&r=ene |
| By: | Emre Hatipoglu; Brian Efird; Saleh Al Muhanna (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This paper evaluates the evolving political will in Japan to restart nuclear power plants to generate electric power, in light of the country’s political and economic developments over the past few years. We apply a model of collective decision-making processes (CDMPs), using the KAPSARC Toolkit for Behavioral Analysis (KTAB), to simulate the interactions among different interest groups including policymakers, national and local political leaders, electricity companies, and the public, given their varying interests, goals and priorities. |
| Date: | 2023–01–29 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp10&r=ene |
| By: | Cohen, Adam; Shaheen, Susan PhD |
| Abstract: | Advanced air mobility (AAM) is a broad concept enabling consumers access to air mobility, cargo and package delivery, healthcare applications, and emergency services through an integrated and connected multimodal transportation network. AAM includes local use cases of about a 50-mile radius in rural or urban areas and intraregional use cases of up to approximately 500 miles that occur within or between urban and rural areas. The Future of Aviation Conference: Advancing Aerial Mobility through Technology, Sustainability, and On-Demand Flight was held in person at the San Francisco International Airport from August 2 to 5, 2022. The conference commenced with an AAM 101 workshop hosted by the Community Air Mobility Initiative (CAMI) on August 2nd. The full conference program began on August 3rd. This event advanced key research and policy discussions around environmental impacts, safety, security, equity, multimodal integration, and the role of government. |
| Keywords: | Engineering |
| Date: | 2023–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt93t0f73m&r=ene |
| By: | Maria Ali (Pakistan Institute of Development Economics) |
| Abstract: | The Quaid-e-Azam Solar Power Park was designed and built at the incorrect location. Bahawalpur’s climate is not suitable for the project. The temperature rises above 45 degrees Celsius, which does not produce the required amount of electricity. The project was designed to project 1000 MW of energy; however, up until this point, it has only generated 400 MW. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:pid:wbrief:2022:106&r=ene |
| By: | Laurencio Daniel Artana |
| Abstract: | En el siguiente trabajo se presenta un modelo basado en Navajas et. al. (2012) que busca proponer una reforma tributaria del status quo de los impuestos a la energía en Argentina. El modelo parte de la existencia de componentes uniformes y no uniformes en la estructura impositiva del status quo, donde estos últimos son explicados por diversas presiones de las elites políticas. La idea general es reformar este componente y modificarlo de manera normativa tal que las alícuotas se impongan en relación a la contaminación que genera cada producto energético, como también eliminar los subsidios a la energía existentes en el país. Se presentan resultados en relación a los cambios en los precios, las emisiones de cada producto, la recaudación, y la incidencia distributiva de la reforma. Los resultados generales de la reforma son positivos y significativos en términos ambientales y recaudatorios, mientras que presenta regresividad en términos de incidencia en la distribución del ingreso. La reforma no tiene en cuenta las posibles políticas sociales que podrían realizarse con los ingresos extra de la reforma en pos de mitigar la regresividad de la misma. |
| JEL: | H23 Q51 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4537&r=ene |
| By: | David Ardia; Keven Bluteau; Gabriel Lortie-Cloutier; Thien-Duy Tran |
| Abstract: | We explore the factor exposure heterogeneity in green and brown stocks using the peer-exposure ratio. By creating peer groups of S&P 500 index firms over 2014-2020 based on their greenhouse gas emission levels, we find that, on average, the largest factor exposure heterogeneities are observed for the value factor in green stocks and the momentum factor in brown stocks. Moreover, investing in brown stocks allows managers to distinguish themselves more in terms of factor exposure than green stocks, except in the value factor. Compared to earlier periods, investment managers now have more opportunities to differentiate themselves in their factor exposures. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.11729&r=ene |
| By: | Eskander, Shaikh M.S.U.; Fankhauser, Sam |
| Abstract: | We analyse the international impact on carbon emissions from national climate legislation in 111 countries over 1996–2018. We estimate trade-related carbon leakage, or net carbon imports, as the difference between consumption and production emissions. Legislation has had a significant negative and roughly similar impact on both consumption and production emissions. The net impact on trade-related emissions is therefore not statistically significant, neither in the short term (laws passed in the last 3 years) nor the long term (laws older than 3 years). We find a significant negative long-term impact on domestic emissions from laws passed by trade partners. This latter specification corresponds to the traditional definition of carbon leakage. Overall, we conclude that there has been no detrimental effect of climate legislation on international emissions. |
| Keywords: | carbon leakage; climate change legislation; climate policy; consumption emissions; production emissions; technology spillovers |
| JEL: | F18 K32 Q54 Q56 Q58 |
| Date: | 2023–02–22 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118331&r=ene |
| By: | Grzegorz W. Kolodko; Ambre Maucorps (The Vienna Institute for International Economic Studies, wiiw); Olga Pindyuk (The Vienna Institute for International Economic Studies, wiiw); Roman Römisch (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Chart of the Month Taking stock of the COVID-19 pandemic by Olga Pindyuk Opinion Corner A third of a century of economic transformation by Grzegorz W. Kolodko Although a third of a century has passed since the Polish Round Table and the fall of the Berlin Wall, we do not know when the post-socialist political and economic transformation really began – or whether it is already over. All things considered, it has proved a great and historic success, even if the scale of it has varied across different countries. Alternative measures of living standards that go beyond GDP suggest that the gap between post-socialist countries and the West may now be smaller than is customarily believed. Economic and environmental convergence in the EU by Roman Römisch Economic convergence is a topic widely discussed in the EU cohesion policy debate, while environmental convergence is a new term, born out of the substantial variations in greenhouse gas emissions across regions and the EU’s aim of becoming climate neutral by 2050. In this article, we ask whether economic convergence is compatible with environmental convergence. Our answer is not necessarily optimistic. Phasing out coal? A challenge to European territorial cohesion in times of energy crisis by Ambre Maucorps A shift away from coal in favour of sustainable energy sources has been promoted by the European Commission as an essential step towards achieving climate neutrality by 2050. But the energy crisis now unfolding in the wake of Russia’s war in Ukraine and the use of locally extracted solid fossil fuels as an alternative to natural gas could render the EU’s low-carbon transition ambitions unrealistic – unless EU countries maintain their phase-out plans and show greater solidarity with the regions and communities likely to be most affected. Monthly and quarterly statistics for Central, East and Southeast Europe |
| Keywords: | new COVID-19 cases, COVID-19 related deaths, excess mortality, transition outcomes, catching up, inequality-adjusted human development index, economic convergence, environmental convergence, carbon intensity of output, energy crisis, European Green Deal, coal phaseout |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:wii:mpaper:mr:2022-09&r=ene |
| By: | Fetzer, Thiemo (University of Warwick CAGE) |
| 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 area-based 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 and alternative identification strategies ranging from saturated specifications, border discontinuity, matching estimation and an instrumental variables approach leveraging World War II wartime destruction in London – 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 energy 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 Classification: Q54, Q55, R14, R48, N74 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:654&r=ene |
| By: | Sophie Behr; Merve Küçük; Karsten Neuhoff |
| Abstract: | Vor dem Hintergrund der Energie- und der Klimakrise sind Energieeinsparungen dringender denn je nötig. Im Gebäudesektor können diese Einsparungen vor allem über energetische Sanierungen erreicht werden. Bisher geht es dabei nur sehr langsam voran. In Deutschland wird pro Jahr weniger als ein Prozent des Wohngebäudebestands saniert. Die bisherigen Förderprogramme alleine bieten zu wenig Verlässlichkeit für die dafür notwendigen Investitionen in zusätzliche Produktionskapazitäten für Baumaterialien und Baukapazitäten, um die energetische Modernisierung von Gebäuden zu beschleunigen. Deshalb berät am heutigen Montag das EU-Parlament über neue Mindestenergiestandards, die Gebäude schrittweise erreichen müssen. Zusätzlich ist eine verbindliche Zielvorgabe für die jährliche Rate der energetischen Gebäudesanierung notwendig. So könnten vor allem einkommensschwache Haushalte nachhaltig vor Energiekostenschocks geschützt werden. Zudem könnten – wie von der Expert*innenkommission Gas und Wärme empfohlen – Gaseinsparungen erreicht werden, im Jahr 2025 bereits bis zu 14 Prozent. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwakt:87de&r=ene |
| By: | Santos Espina Mairal; Hildegart Ahumada; Fernando Navajas; Alejandro Rasteletti |
| Abstract: | We extend the measurement of effective carbon rates, adapting the OECD methodology (OECD-ECR, 2019, 2021), to 18 countries in Latin America and the Caribbean (LAC) for 2018, starting from energy balances and revising comprehensively the level and structure of excises and carbon taxes across countries and accounting for specificities in the emission structure (eg biofuels) and the existence of energy subsidies, all that quite differ from OECD patterns. This allows us to build up a sample of 66 countries (which includes some Asian and African countries also captured by OECD estimates) across 6 sectors and document stylized facts about the sectoral and aggregate level and structure of carbon pricing. Such facts show a biased structure of taxation towards road transport (which has a genesis, decades ago, different from the sole objectives of carbon taxation). This motivates an econometric modelling strategy where we first account for the determinants of economy-wide effective carbon rates (ECR) and then explain differences in road transport and the rest of sectors across countries with an automatic, machine learning model selection and using large set of potential explanatory variables that cover different structural, economic and institutional dimensions. Fiscal variables such as proxies for the marginal cost of public funds are important determinants of ECR in the road transport sector, as expected from the genesis of fuel excises. Emission trading systems tend to increase the value of ECR, while the same does not happen for carbon taxes suggesting that the later are introduced in a reform that substitute for excises. We document that LAC has a lower ECR and that energy subsidies are relevant in changing results only for some countries. However, we find that LAC does not depart from the model estimated for the whole sample insofar the main determinants of ECR. The exception are ETS since these are not observed in LAC, suggesting there might be an avenue for improving ECR by the introduction of ETS in some LAC countries. |
| JEL: | Q4 H2 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4559&r=ene |
| By: | Angrist, Noam; Winseck, Kevin; Patrinos, Harry Anthony; Zivin, Joshua Graff |
| Abstract: | Addressing climate change requires individual behavior change and voter support for proclimate policies, yet surprisingly little is known about how to achieve these outcomes. This paper estimates causal effects of additional education on pro-climate outcomes using new compulsory schooling law data across 16 European countries. It analyzes effects on pro-climate beliefs, behaviors, policy preferences, and novel data on voting for green parties - a particularly consequential outcome to combat climate change. Results show a year of education increases pro-climate beliefs, behaviors, most policy preferences, and green voting, with voting gains equivalent to a substantial 35% increase. |
| Keywords: | Human Capital, Education, Climate Change, Compulsory Schooling Laws, Voting |
| JEL: | D72 H41 I20 I28 P16 Q01 Q5 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1246&r=ene |
| By: | Manuela María Cerimelo; Pablo De la Vega; Natalia Porto |
| Abstract: | This paper aims to identify and characterize the potential of green jobs in Argentina, i.e., those that would benefit from a transition to a green economy, using occupational green potential scores calculated in US O*NET data. We apply the greenness scores to Argentine household survey data and estimate that 25% of workers are in green jobs, i.e., have a high green potential. However, when taking into account the informality dimension, we find that 15% of workers and 12% of wage earners are in formal green jobs. We then analyze the relationship between the greenness scores (with emphasis on the nexus with decent work) and various labor and demographic variables at the individual level. We find that for the full sample of workers the green potential is relatively greater for men, the elderly, those with very high qualifications, those in formal positions, and those in specific sectors such as construction, transportation, mining, and industry. These are the groups that are likely to be the most benefited by the greening of the Argentine economy. When we restrict the sample to wage earners, the green potential score is positively associated with informality. |
| JEL: | E20 Q50 J80 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4550&r=ene |
| By: | Daniel Ostalé Valriberas; Elisa Lanzi; Zbigniew Klimont; Rita Van Dingenen |
| Abstract: | This report quantifies the environmental, health and economic consequences of policy action on air pollution in Arctic Council countries, with a focus on sectoral differences. The report takes a modelling approach and compares a baseline scenario that reflects current legislation, with a policy scenario in which the best available techniques to reduce emissions are deployed in all emitting sectors. The report highlights that benefits from air quality improvements can be obtained when considering emission reductions throughout the economy, and not just in the sectors that are targeted more often, such as industry and transport. The results presented in the report also highlight the need for country-specific policy strategies that take into account the current levels of policy stringency, the sectoral contributions to air pollution, and the need for sectoral investment in new technologies, which also vary by country. |
| Keywords: | air pollution, air quality, best available techniques, computable general equilibrium models |
| JEL: | C68 Q53 Q52 |
| Date: | 2023–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:212-en&r=ene |
| By: | Rim Rejeb; Hélène Bouscasse; Sandrine Mathy; Carole Treibich |
| Abstract: | Although France is exposed to significant levels of air pollution, it is lagging behind its European neighbors in the implementation of low-emission zones (LEZs). Acceptability issues seem to be central to this delay. The Climate and Resilience Law passed in 2021 introduces the obligation for cities with more than 150, 000 inhabitants to implement a LEZ by the end of 2024. Thirty-three new urban areas in France are thus concerned, including the Grenoble metropolitan area. Using original survey data, this article proposes an ex-ante evaluation of the acceptability of this future LEZ and its determinants. The analysis is based on original data collected through a telephone survey. Using bivariate analysis and binary logit regression, we found a good level of acceptability of the LEZ on average, but with lower levels for individuals directly affected by the traffic restrictions. The results show that acceptability is mainly determined by positive attitudes and individual perceptions of the LEZ and less influenced by socio-demographic characteristics. |
| Keywords: | Low Emission Zones, Social Acceptability, Econometric Analysis, France |
| JEL: | Q48 Q52 Q53 R58 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2023-02&r=ene |
| By: | Hao, Peng; Oswald, David; Wu, Guoyuan; Barth, Matthew J |
| Abstract: | Surface transportation systems (e.g., arterial roadways with signalized intersections) are inherently inefficient, particularly at higher traffic volumes. In general, both the infrastructure (e.g., traffic signals) and the vehicles operate independently, with little coordination between them. Previous research has shown that implementing strategies that take advantage of infrastructure-tovehicle communication can improve overall mobility and reduce environmental impacts, e.g., the Eco-Approach and Departure (EAD) application that takes advantage of communicating signal phase and timing information to the vehicles. In this paper, the authors build upon this past research to develop a new cooperative traffic operation approach that takes advantage of not only infrastructure-to-vehicle communications, but also vehicle-to-infrastructure communications. This effort integrates a dynamic traffic signalization algorithm together with EAD algorithm to achieve even greater traffic efficiency. The research was carried out in a high-fidelity simulation environment and shows upwards of 15% fuel savings and 85% reductions in waiting time. View the NCST Project Webpage |
| Keywords: | Engineering, Physical Sciences and Mathematics, Cooperative traffic optimization, eco-approach and departure, SUMO, traffic simulation, vehicle-to-infrastructure communication |
| Date: | 2023–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt4nd624jd&r=ene |
| By: | Ferguson, Beth; Sanguinetti, Angela |
| Abstract: | Micromobility is well-suited to address first- and last-mile connectivity with public transit by extending the catchment area around transit stations and bridging gaps in the existing transit network, ultimately facilitating access to jobs and services. However, the uptake of micromobility depends on a variety of factors including environmental design features at and around public transit stations that support or inhibit access. This research covered environmental audits at 18 BART stations to count arrivals, departures, and parked personal and shared micromobility vehicles, an online survey of BART and micromobility users, and interviews with government, industry, and community stakeholders. This research showed that in the California Bay Area, the prevalence of personal micromobility currently dwarfs rates of shared micromobility use, and that includes a burgeoning segment of transit users connecting with their own e-bikes and e-scooters. Successes and challenges were highlighted, and recommendations made for station design, including greater availability of shared micromobility vehicles, more affordable secure parking for personal micromobility vehicles, better signage and wayfinding. Beyond the station proper, there is a need for protected bike lanes and consistent design standards for bike facilities throughout the region. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Micromobility, public transportation, shared mobility, scooter, bike |
| Date: | 2023–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt4fm8z1ct&r=ene |
| By: | Zhou Fang |
| Abstract: | We propose a virtual bidding strategy by modeling the price differences between the day-ahead market and the real-time market as Brownian motion with drift, where the drift rate and volatility are functions of meteorological variables. We then transform the virtual bidding problem into a mean-variance portfolio management problem, where we approach the mean-variance portfolio management problem by using the exploratory mean-variance portfolio management framework |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.02303&r=ene |
| By: | Erik Grigoryan (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Zenathan Adnin Hasannudin (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Alberto Isgut (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Patrick Martin (Consultant, Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific); Deanna Morris (Macroeconomic Policy and Financing for Development Division, United Nations Economic and Social Commission for Asia and the Pacific) |
| Abstract: | Under the Paris Agreement, developed and developing countries have committed to do their part to ensure that the warming of the planet is capped at well below 2 °C above pre- industrial levels and are pursuing efforts to limit the temperature increase to 1.5 °C above pre- industrial levels. These commitments are reflected in their Nationally Determined Contributions (NDCs), which countries are required to submit every five years. However, with COVID-19 recovery efforts demanding a massive increase in government expenditure amid slowing economic activity, sovereign debt levels have risen sharply in 2020 and are likely to remain high in the near future. Currently, 11 Asia-Pacific countries are at high risk of debt distress, seven of which are Pacific Small Island Developing States: Afghanistan, Kiribati, Lao PDR, Maldives, Marshall Islands, Micronesia (Federated States of), Papua New Guinea, Samoa, Tajikistan, Tonga and Tuvalu. Furthermore, as countries prioritize addressing health concerns and a speedy economic recovery, relatively less attention is being paid to tackling climate change. Given this situation, there has been increasing support for debt-for-climate swaps as a solution to simultaneously reduce sovereign debt burdens and increase financing to scale up investments in climate mitigation and adaptation projects. Earlier this year, the Managing Director of the IMF announced that the IMF and the World Bank are working together to develop an “organizing framework†for connecting debt relief to countries’ plans for investing in green, resilient and inclusive development. Their joint proposal for green debt swaps will be announced during COP 26. |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:unt:pbmpdd:pb121&r=ene |
| By: | Ayşegül Kanay (CLLE-LTC - Cognition, Langues, Langage, Ergonomie - EPHE - École pratique des hautes études - PSL - Université Paris sciences et lettres - UT2J - Université Toulouse - Jean Jaurès - CNRS - Centre National de la Recherche Scientifique); Denis Hilton (CLLE-LTC - Cognition, Langues, Langage, Ergonomie - EPHE - École pratique des hautes études - PSL - Université Paris sciences et lettres - UT2J - Université Toulouse - Jean Jaurès - CNRS - Centre National de la Recherche Scientifique); Laetitia Charalambides (UNIL - Université de Lausanne = University of Lausanne, CLLE-LTC - Cognition, Langues, Langage, Ergonomie - EPHE - École pratique des hautes études - PSL - Université Paris sciences et lettres - UT2J - Université Toulouse - Jean Jaurès - CNRS - Centre National de la Recherche Scientifique); Jean-Baptiste Corrégé (LIMSI - Laboratoire d'Informatique pour la Mécanique et les Sciences de l'Ingénieur - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CLLE-LTC - Cognition, Langues, Langage, Ergonomie - EPHE - École pratique des hautes études - PSL - Université Paris sciences et lettres - UT2J - Université Toulouse - Jean Jaurès - CNRS - Centre National de la Recherche Scientifique); Eva Inaudi (UT2J - Université Toulouse - Jean Jaurès); Laurent Waroquier (LAPSCO - Laboratoire de Psychologie Sociale et Cognitive - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne); Stéphane Cézéra (TSE-R - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - Université Fédérale Toulouse Midi-Pyrénées - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | We compared the effectiveness of basket goal-setting to product information strategies on sustainable consumption in a simulated online supermarket. Experiment 1 found a significant effect of basket goal setting techniques with carbon basket feedback in either numerical or graphical form on the carbon content of baskets purchased but no effect of numerical product information alone or in combination with basket CO2 information. Experiment 2 also found that basket goal setting was effective, but found no additional effect of introducing five-colour coding of the carbon footprints of either products or baskets. Experiment 3 found that repeated visits to the online supermarket led to improved learning about product carbon footprint in the basket goal setting condition, which mediated the effect of goal setting on basket carbon footprint. Our results suggest that goal setting techniques with feedback can reduce the carbon footprint of online shopping baskets and facilitate learning about product carbon footprint. |
| Keywords: | Sustainable consumption, Goal-setting, Decision-aiding, Carbon labels, Groceries |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03403040&r=ene |
| By: | Rob Bauer; Dirk Broeders; Annick van Ool |
| Abstract: | In this paper, we analyze the disclosures of sustainable investing by Dutch pension funds in their annual reports from 2016 to 2021. We introduce a novel textual analysis approach using state-of-the-art natural language processing (NLP) techniques to measure the awareness and implementation of sustainable investing, where we define awareness as the amount of attention paid to sustainable investing in the annual report. We exploit a proprietary dataset to analyze the relation between pension fund characteristics and sustainable investing. We find that a pension fund’s size increases both the awareness and the implementation of sustainable investing. Moreover, we analyze the role of signing the International Responsible Business Conduct (IRBC) initiative. Large pension funds, pension funds with more female trustees, or pension funds with a positive belief about the risk-return relation of sustainable investing are more likely to sign the IRBC initiative. Although signing this initiative increases the specificity of pension fund statements about sustainable investing, we do not find an effect on the implementation of sustainable investing. |
| Keywords: | ESG; sustainability; SI initiatives; pension funds; textual analysis; natural language processing. |
| JEL: | C8 G11 J32 M14 Q54 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:770&r=ene |
| By: | Markus Brueckner; Haidi Hong; Joaquin Vespignani |
| Abstract: | This paper presents estimates of the effects that government regulation of diesel and petrol prices has on GDP growth. Theory suggests that when supply curves are convex, a decrease in the regulatory price has a larger effect on output than a tantamount increase. Motivated by this theoretical insight, we specify VAR models with asymmetric effects of positive and negative changes in the regulatory prices of diesel and petrol. We estimate the VAR models on quarterly data from China’s national accounts during the period Q1 1998 to Q4 2018. Our main findings are that: (i) negative growth rates of regulatory diesel and petrol prices significantly reduce GDP growth; (ii) positive growth rates of regulatory diesel and petrol prices have a positive, but quantitatively small and statistically insignificant effect on GDP growth. |
| Keywords: | GDP growth, energy price regulation |
| JEL: | Q43 K20 E02 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-17&r=ene |
| By: | Paula Pereda; Andrea Lucchesi, Thais Diniz, Rayan Wolf |
| Abstract: | We discuss the impact of a carbon tax on the maritime transport sector, which is responsible for approximately 3% of global emissions. The International Maritime Organization (IMO) has set long-term targets to reduce carbon intensity and achieve carbon neutrality, but the impact of the policies to achieve those targets on the global and local economies must be assessed. We use a global and multi-region Computable General Equilibrium (CGE) model - Global Trade Analysis Project Energy-Environmental augmented version (GTAP-E) – to evaluate the environmental and economic effectiveness of a carbon tax of $50/tCO2e on international shipping. GTAP-E does not provide emissions data by transport mode and accurately estimating emissions is crucial to proposing a carbon pricing measure. Therefore, we have applied machine-learning techniques to predict the share of international trade transported by sea by sector, origin and destination countries and calculate ship emissions for each bilateral flow by sector. The findings indicate that while the tax considerably reduced emissions from ships, it also had a negative impact on exports and resulted in mixed impacts on GDP, exacerbating existing inequalities across regions. Our analysis highlights the importance of considering various economic and social variables in impact assessments to identify potential trade-offs and synergies between policy objectives. |
| Keywords: | Carbon Pricing; Carbon Tax; Shipping; Computable General Equilibrium |
| JEL: | Q52 R48 F17 Q56 |
| Date: | 2023–03–16 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2023wpecon4&r=ene |
| By: | Hamid Balali (Ali Sina University); Mohammad Reza Farzanegan (University of Marburg); Omid Zamani (Thuenen Institute of Market Analysis); Mostafa Baniasadi (Ali Sina University) |
| Abstract: | This study aims to simulate the future trends of carbon emissions under different international sanction scenarios in Iran. A System Dynamics (SD) model is developed and several variables that capture multiple levels of economic, social, and environmental concepts are taken into account. Our findings indicate that, despite Iran's sluggish economic growth, fossil fuel use and CO2 emissions will rise in the scenarios with international sanctions. Imposed sanctions on Iran exacerbate the environmental negative externalities through increasing energy intensity of economic sectors and consequently cause more CO2 emissions. Thus, based on our findings, prolonging international sanctions could be a major barrier to improving energy intensity and lowering CO2 emissions. Given the potential unintended environmental consequences of international sanctions, this study suggests that international communities, particularly sanctioning countries, should consider the environmental impacts of sanctions in their policy-making decisions in order to reduce emissions and related environmental damages. |
| Keywords: | Sanctions; System Dynamics; Environmental Impacts; Simulation; CO2 Emissions; Iran; JCPOA |
| JEL: | P18 F51 Q2 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202303&r=ene |
| By: | Koji Takahashi; Junnosuke Shino |
| Abstract: | This paper investigates the effect of the greenhouse gas (GHG) emissions of firms on bank loans using bank–firm matched data of Japanese listed firms from 2006 to 2018. Previous findings suggest that climate risks priced in corporate bonds or syndicated loans are statistically significant but economically minor. This paper investigates bank lending behavior in terms of the loan amount, which we consider to have a more direct effect on firm investment decisions. This paper finds that banks significantly decrease loans to firms with higher GHG emissions. Moreover, this GHG emissions effect appears to have prevailed even before the signing of the Paris Agreement, which the existing literature considers as the starting point where GHG emissions are incorporated in the pricing of debt instruments as credit risk. Finally, banks with greater leverage and a lower return on assets are more likely to decrease loans to firms with high GHG emissions. |
| Keywords: | greenhouse gas, bank lending, leverage, loan-level data |
| JEL: | E51 G21 Q54 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1078&r=ene |
| By: | Plötz, Patrick; Wachsmuth, Jakob; Sprei, Frances; Gnann, Till; Speth, Daniel; Neuner, Felix; Link, Steffen |
| Abstract: | Following the Paris Agreement, virtually all countries worldwide have committed themselves to undertaking efforts to limit global warming to 1.5°C. Within the European Union (EU), the recent "Fit for 55" policy package proposes ambitious greenhouse gas (GHG) mitigation policies for all sectors as part of the EU's contribution to limiting global warming. Yet, it is unclear whether the proposed policies are sufficient for the EU to limit global warming to 1.5°C and it remains an open policy problem how to translate global temperature targets into sector-specific emission budgets and further into sector-specific policies. Here, we derive GHG budgets for transport in EU27 and obtain GHG mitigation pathways for Europe consistent with 1.5°C global warming. We do not provide a comprehensive assessment of the "Fit for 55" transport package but we discuss the main policies for road transport in light of the GHG emission budgets, their level of ambition, and suggest amendments to these policies as well as improvements to the "Fit for 55" package. Our results suggest that parts of the "Fit for 55" for transport are still not ambitious enough to align with a 1.5°C scenario. |
| Keywords: | Climate policy, transport emissions, battery electric vehicles |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s022023&r=ene |
| By: | Rodemeier, Matthias (Bocconi University) |
| Abstract: | What do markets for voluntary climate protection imply about people's valuations of en- vironmental protection? I study this question in a large-scale field experiment (N=255, 000) with a delivery service, where customers are offered carbon offsets that compensate for emissions. To estimate demand for carbon mitigation, I randomize whether the delivery service subsidizes the price of the offset or matches the offset's impact on carbon mitigation. I find that consumers are price-elastic but fully impact-inelastic. This would imply that consumers buy offsets but their willingness to pay (WTP) for the carbon it mitigates is zero. However, I show that consumers can be made sensitive to impact through a simple information treatment that increases the salience of subsidies and matches. Salient information increases average WTP for carbon mitigation from zero to 16 EUR/tCO2. Two complementary surveys reveal that consumers have a limited comprehension of the carbon-mitigating attribute of offsets and, as a result, appear indifferent to impact variations in the absence of information. Finally, I show that the widely-used contingent valuation approach poorly captures revealed preferences: Average hypothetical WTP in a survey is 200 EUR/tCO2, i.e., 1, 150% above the revealed preference estimate. |
| Keywords: | climate change, carbon mitigation, willingness to pay, carbon offsets, contingent valuation, nudging |
| JEL: | D61 D82 H21 Q51 Q58 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp15939&r=ene |
| By: | Sophie Behr; Merve Küçük; Karsten Neuhoff |
| Abstract: | The energy and climate crisis enhance the need for energy savings. In the building sector, these savings can be achieved primarily through thermal retrofitting. So far, progress in this area has been slow. To date, less than one percent of the residential building stock in Germany is retrofitted each year. The existing support programs alone offer too little reliability for the necessary investments in additional production capacities for building materials and in the construction sector to take place. In order to accelerate the energetic modernization of buildings, minimum energy performance standards (MEPS) for buildings and binding target for the annual rate of thermal building retrofitting is necessary. Low-income households in particular could be sustainably protected from future energy cost shocks and gas savings of up to 14 percent could be achieved by end of 2025. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwfoc:9en&r=ene |
| By: | Walter Cont; Fernando Antonio Ignacio González; Eliana Mariel Uesu |
| Abstract: | The global sustainable development agenda indicates that countries must achieve a rapid reduction in greenhouse gases emissions (decarbonization) while sustaining economic growth to continue improving living standards -especially in developing countries-. The relationship between emissions and economic growth is complex. One of the most widely used tools to model this relationship is the so-called Environmental Kuznets curve (EKC). The EKC suggests the existence of an inverted-U relationship between greenhouse gases (GHG) emissions and economic growth. In this work, we estimate the EKC for a broad panel of countries spanning the last three decades (1990-2019), using a panel regression with fixed effects. We find a positive relationship between GHG emissions and growth. Emissions eventually turn with income when we narrow down the analysis to carbon dioxide excluding land use, land use change and forestry, supporting the EKC hypothesis. These results are robust when decomposing by emitting activities (energy and industrial processes) and sub-activities (electricity, transportation and buildings), but they are not robust to decomposition by regions. In the 1990-2019 sample, we find no relationship between emissions and growth in the Latin American and the Caribbean, as well as some other regions. We use the results to assess the level of income at which emissions eventually decouple from growth. Even though we show some disperse results, which are common in the literature, we recommend cautiousness and deeper research in fostering growth hoping emissions will eventually turn. Therefore, decarbonization efforts should not be diminished. |
| JEL: | Q56 O13 |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4553&r=ene |
| By: | Thomas M\"obius; Mira Watermeyer; Oliver Grothe; Felix M\"usgens |
| Abstract: | Energy system models require a large amount of technical and economic data, the quality of which significantly influences the reliability of the results. Some of the variables on the important data source ENTSO-E transparency platform, such as transmission system operators' day-ahead load forecasts, are known to be biased. These biases and high errors affect the quality of energy system models. We propose a simple time series model that does not require any input variables other than the load forecast history to significantly improve the transmission system operators' load forecast data on the ENTSO-E transparency platform in real-time, i.e., we successively improve each incoming data point. We further present an energy system model developed specifically for the short-term day-ahead market. We show that the improved load data as inputs reduce pricing errors of the model, with strong reductions particularly in times when prices are high and the market is tight. |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2302.11017&r=ene |
| By: | Nordø, Åsta Dyrnes; Andersen, Gisle; Merk, Christine |
| Abstract: | The risk of opposition from the population increasingly plays a role in choosing the climate policy measures to achieve the objective to substantially reduce greenhouse gas emissions. In Norway, there is a long-standing cross-party consensus that the development of new technologies will be crucial for solving climate challenges. Comparing public opinion surveys, Norwegians are significantly more convinced that new technology will solve problems induced by climate change, compared people in other European countries. A concrete example of such a technology is carbon capture and storage (CCS). Despite discussions about the costs of establishing the technology, there is a cross-party consensus in Norway that CCS is a good and suitable measure for reaching climate policy goals. In this article, we review the historical background that has led to this broad support in Nor-way. Furthermore, we look at how this has been expressed in the political parties' attitudes towards CCS. There has been a long standing consensus among all major parties that CCS should be developed and deployed. We argue that this lay the foundation for the societal support for CCS. We analyze data from the Norwegian Coordinated Online panels for research on DEMocracy and governance (KODEM) to examine the attitudes toward CCS among citizens and three functional elites, namely elected representatives, bureaucrats, and journalists. We find that CCS receives strong support in all four groups, but that citizens and elected representative are more skeptical compared to bureaucrats and journalists. However, when looking at the factors that influence the perception of CCS, the pattern is the same for all four groups. The more technology optimistic a person is, the more positively they tend to perceive CCS as a method to fight climate change. We also find that those who think the political efforts to reduce greenhouse gases are too great are less positive about CCS com-pared to those who think the efforts are appropriate or too small. Overall, the analysis indicates that all four societal groups are technology optimistic and characterized by the same attitudes toward climate change. We discuss the role of technology optimism in Norway's climate policy and the reasons for the high degree of political consensus across groups with different societal functions. |
| Keywords: | Climate policy, carbon capture, CCS, technology optimism, citizen-elite congruence |
| JEL: | Q54 Q55 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2239&r=ene |
| By: | Peter Hoeller; Volker Ziemann; Boris Cournède; Manuel Bétin |
| Abstract: | The housing sector is one of the main sources of CO2 emissions in OECD countries, accounting for over a quarter of the total. Robust and rapid action is required to reach the net zero emission target by 2050. Decarbonising housing involves halting the use of fossil fuels in homes, ensuring that electricity is generated from carbon-free sources, using high-energy-efficiency appliances and heating systems, ensuring effective insulation and encouraging behavioural changes. This paper discusses which policy instruments can prompt this transformation of the housing sector, ranging from carbon pricing through energy labelling requirements to green housing finance. |
| Keywords: | decarbonisation, energy efficiency, Housing, insulation |
| JEL: | F64 H23 |
| Date: | 2023–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1751-en&r=ene |
| By: | Michaela V. Gerhardt (University of Kassel); Elke D. Kanberger (University of Kassel); Andreas Ziegler (University of Kassel) |
| Abstract: | This paper examines the individual preferences for a reduction of life-cycle CO2 emissions in vehicle purchase decisions. The empirical analysis is based on data from a stated choice experiment with more than 1, 100 citizens in Germany that refers to decisions between three types of electric vehicles and a conventional (i.e. gasoline or diesel) vehicle that are characterized by several attributes like purchase price or fuel costs. With respect to CO2 emissions, we specifically examine emissions in vehicle production besides the commonly considered emissions in vehicle use. Our econometric analysis with flexible mixed logit models reveals a strong stated preference for the reduction of CO2 emissions in both vehicle use and production, whereby the estimated willingness to pay for CO2 emission reductions is higher for vehicle production. Furthermore, we find that conventional vehicles are significantly preferred over plug-in hybrid electric vehicles and particularly strongly significantly preferred over extended-range and pure electric vehicles. Surprisingly, environmental attitudes, i.e. environmental awareness and ecological policy identification, have no significant effects on the reduction of CO2 emissions in both vehicle use and production. These results suggest that citizens in Germany with strong environmental identity do not consider reductions of CO2 emissions in vehicle purchase decisions as an important direction for climate protection. Instead, this group rather tends to avoid the purchase of conventional vehicles since environmental attitudes have a significantly positive effect on the stated choice of electric vehicles, whereby this estimated effect is dominated by an ecological policy orientation instead of general environmental awareness. The latter result suggests the strong relevance of the controversial political discussion about the transition to electromobility in Germany. By considering economic preferences, the econometric analysis additionally reveals that individual trust is relevant for the purchase of plug-in hybrid electric vehicles. |
| Keywords: | Vehicle purchase decisions, CO2 emissions in vehicle use and production, climate protection, electric vehicles, stated choice experiment, mixed logit models |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:mar:magkse:202305&r=ene |