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on Energy Economics |
| By: | Haonan Zhang |
| Abstract: | Building energy retrofits have been identified as key to realizing climate mitigation goals in Canada. This study aims to provide a roadmap for existing mid-rise building retrofits in order to understand the required capital investment, energy savings, energy cost savings, and carbon footprint for mid-rise residential buildings in Canada. This study employed EnergyPlus to examine the energy performance of 11 energy retrofit measures for a typical multi-unit residential building (MURB) in Metro Vancouver, British Columbia, Canada. The author employed the energy simulation software (EnergyPlus) to evaluate the pre-and post-retrofit operational energy performance of the selected MURB. Two base building models powered by natural gas (NG-building) and electricity (E-building) were created by SketchUP. The energy simulation results were combined with cost and emission impact data to evaluate the economic and environmental performance of the selected energy retrofit measures. The results indicated that the NG-building can produce significant GHG emission reductions (from 27.64 tCO2e to 3.77 tCO2e) by implementing these energy retrofit measures. In terms of energy savings, solar PV, ASHP, water heater HP, and HRV enhancement have great energy saving potential compared to other energy retrofit measures. In addition, temperature setback, lighting, and airtightness enhancement present the best economic performance from a life cycle perspective. However, windows, ASHP, and solar PV, are not economical choices because of higher life cycle costs. While ASHP can increase life cycle costs for the NG-building, with the financial incentives provided by the governments, ASHP could be the best choice to reduce GHG emissions when stakeholders make decisions on implementing energy retrofits. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2304.00456&r=ene |
| By: | Christoph Böhringer; Carsten Helm |
| Abstract: | It is widely acknowledged that the transition towards a zero-emissions economy requires electrification of energy-related processes across all sectors of the economy — so-called sector coupling. In our analysis we consider countries whose electricity sectors are regulated by a multilateral emissions trading system (ETS). We examine the implications of a unilateral CO2 tax by a group of countries on emissions in their transport and buildings sectors. The tax induces a switch to electricity-based technologies (e.g., electric vehicles and heat pumps), thus raising the demand for emission allowances and their price in the electricity sector. This induces emission reductions in the electricity sectors of the other countries covered under the ETS; hence we have a “reverse waterbed effect”. CO2-intensive electricity generation technologies, especially coal, are most affected by this and their output falls as a result of sector coupling. Subsidies for electricity-based technologies in the transport and buildings sectors have similar effects, and the main insights still hold if these sectors are governed by a separate ETS, as it is planned for the EU. We examine this in a stylized analytical model and use a computable general equilibrium model calibrated to data for the EU to quantify the effects. Moreover, for the case of a second ETS, our numerical results suggest that the unilateral cancellation of emission allowances in the power sector leads to substantially higher welfare losses than doing so in the transport and buildings sectors. |
| Keywords: | sector coupling, unilateral action, overlapping regulation, ETS, reverse waterbed effect |
| JEL: | H23 D58 Q54 Q38 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10362&r=ene |
| By: | Carlos Gaete-Morales; Julius J\"ohrens; Florian Heining; Wolf-Peter Schill |
| Abstract: | In the passenger car segment, battery-electric vehicles (BEV) have emerged as the most promising option to decarbonize transportation. For heavy-duty vehicles (HDV), the technology space still appears to be more open. Aside from BEV, electric road systems (ERS) for dynamic power transfer are discussed, as well as indirect electrification with trucks that use hydrogen fuel cells or e-fuels. Here we investigate the power sector implications of these alternative options. We apply an open-source capacity expansion model to future scenarios of Germany with high renewable energy shares, drawing on detailed route-based truck traffic data. Results show that power sector costs are lowest for flexibly charged BEV that also carry out vehicle-to-grid operations, and highest for HDV using e-fuels. If BEV and ERS-BEV are not charged in an optimized way, power sector costs increase, but are still substantially lower than in scenarios with hydrogen or e-fuels. This is a consequence of the relatively poor energy efficiency of indirect HDV electrification, which outweighs its temporal flexibility benefits. We further find a higher use of solar PV for BEV and ERS-BEV, and a higher use of wind power and, to some extent, fossil generators for hydrogen and e-fuels. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.16629&r=ene |
| By: | Philip Adams; Louise Roos |
| Abstract: | Greenhouse gas emissions in Jordan come primarily from the combustion of refined oil products in transport. Hence, plans to reduce emissions focus primarily on the transport sector. These plans, often detailed from a technological point of view, seldom present reasoned economic measures of likely consequences. This paper provides an assessment of the likely economic costs and benefits for Jordan of two typical schemes to reduce the environmental effects of transport. Both relate to the delivery of passenger services. The first is to encourage the uptake of Battery Electric Vehicles (BEVs) at the expense of Internal Combustion Vehicles (ICVs) and, to a lesser extent, hybrid vehicles. The second is to invest in new public transport infrastructure -- phase 2 of the Bus Rapid Transport system -- assisting to reduce the use of private vehicles principally in urban areas. The analysis is based on scenarios to 2050 constructed using a large model of Jordan's economy, named JorGE. JorGE is calibrated to data for 2020 and has a detailed industrial classification. That classification recognizes electricity produced by several different conventional fossil fuel and renewable technologies and a number of road transport service industries. The road transport industries distinguish passenger from freight services. For passenger services there are separate industries producing public transport services and private transport services. The latter is further disaggregated into services provided by the three different passenger vehicle types -- ICVs, EVs and Hybrids. |
| Keywords: | CGE modelling, electric vehicles (BEV), internal combustion vehicles (ICV), greenhouse gas, public transport |
| JEL: | C68 R41 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:cop:wpaper:g-339&r=ene |
| By: | Wang, Qian; Miller, Marshall; Fulton, Lewis |
| Abstract: | In this study, we investigate how potential changes in US light-duty and medium/heavy-duty vehicle technology and fuel mix from 2020 to 2050 may affect the transition to a very low-carbon future in the United States. Given US targets to reach 50% or more zero-emission vehicle sales by 2030, we consider new sales trajectories for battery-electric vehicles and hydrogen fuel cell vehicles, and rates of uptake across the country needed to reach these. We also consider biofuels use (ethanol and renewable diesel) in remaining internal combustion engine cars and trucks to minimize GHG emissions from those vehicles. Costs of all vehicles sold, and their fuel and other operating costs, are calculated and projected. To account for characteristics of specific vehicle types (e.g., weight, application, fuel economy, drive cycle, etc.), we disaggregate light-duty vehicles and medium/heavy-duty vehicles into ten subcategories. Relative to a business-as-usual case, we develop a series of low-carbon scenarios where three regions of the US adopt zero-emission vehicles at different rates. One is California, where the strongest targets and policies have been set. We also consider “Section 177” states that have agreed to adopt at least some California policies, and the third is the remaining states. Our findings suggest that even slower adoption scenarios can reduce greenhouse gas emissions in 2050 by 90% of 2015 levels. Greater reductions can be attained with rapid adoption cases. However, even a case with all US states adopting California-style policies with a five-year delay—for LDVs, essentially the equivalent of the April 2023 regulatory proposals of the US EPA—may not be quite sufficient to reach the apparent US targets. Despite significant upfront investments required to undertake transitions in the near-term, these scenarios all feature large net savings to consumers after 2030 (or sooner) as fuel and maintenance savings exceed higher costs in purchasing vehicles. Overall net savings from 2020 to 2050 (mostly accrued after 2030) are in the range of $1.7 to $4.8 trillion. However, achieving these full benefits could be challenging due to the need for a rapid rate of zero-emission vehicle adoption and possibly high production volumes of low-carbon biofuels. |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2023–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3tb2c3js&r=ene |
| By: | Luo, Qian; Garcia-Menendez, Fernando; Yang, Haozhe; Deshmukh, Ranjit; He, Gang; Lin, Jiang; Johnson, Jeremiah X |
| Abstract: | China's power system is highly regulated and uses an "equal-share" dispatch approach. However, market mechanisms are being introduced to reduce generation costs and improve system reliability. Here, we quantify the climate and human health impacts brought about by this transition, modeling China's power system operations under economic dispatch. We find that significant reductions in mortality related to air pollution (11%) and CO 2 emissions (3%) from the power sector can be attained by economic dispatch, relative to the equal-share approach, through more efficient coal-powered generation. Additional health and climate benefits can be achieved by incorporating emission externalities in electricity generation costs. However, the benefits of the transition to economic dispatch will be unevenly distributed across China and may lead to increased health damage in some regions. Our results show the potential of dispatch decision-making in electricity generation to mitigate the negative impacts of power plant emissions with existing facilities in China. |
| Keywords: | Humans, Carbon Dioxide, Reproducibility of Results, Coal, Climate, Air Pollution, Power Plants, China, air pollution, power system in China, public health, Climate-Related Exposures and Conditions, Climate Action, Environmental Sciences |
| Date: | 2023–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:agrebk:qt2vq7v90q&r=ene |
| By: | Papa, Javier; et., al. |
| Abstract: | Access to energy, in this case to a basic electricity service, is considered a human right as established in most countries’ National Constitution. High electricity costs are frequently seen as an obstacle to get energy access in the case of most vul-nerable households. In Argentina, the size of energy subsidies has been growing up to 2.8% of GDP in 2014. The substantial increase in energy tariffs that has occurred since 2016 brought down the weight of such subsidies to 1.1% of GDP in 2019, though it went up again to 2.2% of GDP in 2020 vis-à-vis a reduction in the level of energy tariffs. The purpose of this paper is to put forward a new mechanism for subsidies focalization which is more efficient to reduce the burden on the national budget while, at the same time, is socially fair to allow low-income consumer access to a basic electricity service. Combining both energy policy and social policies in Argentina, the authors suggest the implementation of the so-called Programa Energizar, which would be made of a fixed discount out of the monthly electricity bill of most vulnerable households. Such a discount would become effective through the use of the existing Tarjeta Alimentar, which is oriented towards the purchase of goods and services of low-income consumers. Any further saving in energy consumption could be used to smooth out seasonal variations in consumption and/or be used towards the purchase of additional goods and services, which would represent and incentive towards energy efficiency measures in vulnerable households |
| Keywords: | Energy, Tariff focalization, Subsidies, Efficiency & Equity, Argentina |
| JEL: | L94 O13 O21 O38 O54 Q41 Q43 Q48 |
| Date: | 2022–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116742&r=ene |
| By: | Lutz Kilian; Xiaoqing Zhou |
| Abstract: | We propose a new instrument for estimating the price elasticity of gasoline demand that exploits systematic differences across U.S. states in the pass-through of oil price shocks to retail gasoline prices. We show that these differences are primarily driven by the cost of producing and distributing gasoline, which varies with states’ access to oil and gasoline transportation infrastructure, refinery technology, and environmental regulations, creating cross-sectional gasoline price shocks in response to an aggregate oil price shock. Time-varying estimates do not support the view that the gasoline demand elasticity has declined in absolute value to near zero since the 1980s. The elasticity was stable near -0.3 until the end of 2014. It rose to about -0.2 in 2015-16, but has remained stable since 2016. Gasoline demand is more responsive in states with lower personal income, higher unemployment rates and lower urban population shares. There is no evidence for an asymmetry in the elasticity with respect to positive and negative gasoline price shocks. We illustrate how these elasticity estimates inform the recent policy debate about the impact of gasoline tax holidays on consumers’ discretionary income, about the demand destruction from the spike in gasoline prices after the invasion of Ukraine, and about the impact of rising gasoline prices on carbon emissions. |
| Keywords: | price elasticity of gasoline demand, pass-through, gasoline tax, gasoline supply, identification, IV, cross-section |
| JEL: | D12 Q41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10350&r=ene |
| By: | Johannes Mauritzen |
| Abstract: | A fundemantal and unanswered question for the widely shared goal of electrifying passenger vehicles is how the price of electricity, which can vary greatly across countries and regions, affects buying behavior. I make use of a natural experiment in Norway in the period 2021-2022 when large price differences between north and south emerged to estimate the effect of electricity prices on the decision to purchase a pure battery-electric vehicle. Simple difference estimates along the border of the price zones as well as a difference-in-difference regression model suggest a significant but economically modest effect of a 2-4\% reduction in the probability of purchasing an electric vehicle in the high price zone. A counterfactual simulation suggests that there would have been about 3000 to 6000 fewer electric vehicles sold in the high-price south compared to a scenario where the south had equally low prices as in the north. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2304.01709&r=ene |
| By: | Ioannou, Petros; Chen, Pengfei |
| Abstract: | Today’s airport terminals face a critical problem of traffic congestion in the terminal area partly caused by uncoordinated shuttle operations. The congestion near pick-up and drop-off points negatively affects passenger traffic leading to unnecessary idling, delays and congestion with negative impact on air quality and mobility. The need for an intelligent shuttle management system becomes more urgent with the development of information technologies, battery electric shuttles and autonomous vehicles. In this project, we developed a centrally coordinated shuttle scheduling and routing management system for mixed fleets of diesel and electric shuttles using a digital twin of LAX to LA downtown traffic road network by optimizing the total combined cost of energy consumption and travel time. A Co-Simulation Optimization method is used to solve the problem. The objective is to reduce congestion at the designated pick up and drop off points due to different shuttles showing up at these points during overlapping time windows which exceed the curb capacity. Another objective is to integrate into the system mixed fleet of shuttles that include diesel and battery operated. The proposed centrally coordinated shuttle scheduling and routing management system takes into account the characteristics of mixed shuttle fleets and is shown to reduce the operational cost such as energy consumption and delays. The results also suggest the deployment of electric shuttles in order to reduce emissions and improve air quality further. View the NCST Project Webpage |
| Keywords: | Engineering, Shuttle Scheduling and Routing, Load Balancing System, Co-Simulation, Mixed Shuttle Fleet, Electric Shuttle, Autonomous Shuttle |
| Date: | 2023–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt6gg7r6c5&r=ene |
| By: | Arjan Trinks (CPB Netherlands Bureau for Economic Policy Analysis); Erik Hille (HHL Leipzig Graduate School of Management) |
| Abstract: | Entrepreneurs seem to be adapting their business operations to climate policy, instead of relocating their business to countries without or with less stringent climate policies. There is little to no evidence that climate policy has depressed the profit, productivity or turnover of an average industrial firm. This follows from a CPB study into the effect of carbon costs for approximately 3 million firms in 32 countries between 2000 and 2019. |
| JEL: | D22 H23 Q41 Q48 Q52 Q58 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:cpb:discus:445&r=ene |
| By: | Avgousti, Aris; Caprioli, Francesco; Caracciolo, Giacomo; Cochard, Marion; Dallari, Pietro; Delgado-Téllez, Mar; Domingues, João; Ferdinandusse, Marien; Filip, Daniela; Nerlich, Carolin; Prammer, Doris; Schmidt, Katja; Theofilakou, Anastasia |
| Abstract: | Fiscal policy plays a prominent role in climate change mitigation and adaptation. An optimal combination of revenue policies, in particular taxes, and expenditure policies, such as subsidies and investment, is essential in order to achieve greenhouse gas emissions targets. This paper analyses the main fiscal instruments in place in European Union Member States, focusing on specific issues, such as the fiscal impact of extreme weather events, the interaction between debt sustainability and climate change, the green investment gap and the distributional impact of climate policies. The paper aims to provide an overview of existing fiscal policies and of the main fiscal challenges for a comprehensive European climate change strategy. JEL Classification: H2, H5, H6, Q54, Q58, D63 |
| Keywords: | carbon tax, climate change, debt sustainability, extreme weather events, green investment, redistribution |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2023315&r=ene |
| By: | Oliver Loertscher; Pau S. Pujolas |
| Abstract: | We study the behaviour of Canadian total factor productivity growth over the past 60 years. We find that the observed stagnation during the last 20 years is entirely accounted for by the Oil sector. Higher oil prices made capital-intensive sources of oil like the oil sands viable to extract on a commercial scale. However, the greater input required per barrel of oil slowed productivity growth. Comparing Canadian TFP growth to that of the United States reinforces these results. However, our result should not be interpreted to carry any welfare implications. |
| Keywords: | Canadian Productivity Stagnation; Oil Sector; TFP |
| JEL: | D24 E01 O47 O51 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:deptwp:2023-01&r=ene |
| By: | Tal, Gil; Pares, Francisco; Busch, Pablo; Chandra, Minal |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2023–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt57s3t1hg&r=ene |
| By: | {\L}ukasz Lepak; Pawe{\l} Wawrzy\'nski |
| Abstract: | An increasing part of energy is produced from renewable sources by a large number of small producers. The efficiency of these sources is volatile and, to some extent, random, exacerbating the energy market balance problem. In many countries, that balancing is performed on day-ahead (DA) energy markets. In this paper, we consider automated trading on a DA energy market by a medium size prosumer. We model this activity as a Markov Decision Process and formalize a framework in which a ready-to-use strategy can be optimized with real-life data. We synthesize parametric trading strategies and optimize them with an evolutionary algorithm. We also use state-of-the-art reinforcement learning algorithms to optimize a black-box trading strategy fed with available information from the environment that can impact future prices. |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2303.16266&r=ene |
| By: | Bossler, Mario (Institute for Employment Research (IAB), Nuremberg); Moog, Alexander (University of Mainz); Schank, Thorsten (University of Mainz) |
| Abstract: | In course of the current energy crisis, the consequences of increasing gas prices are heavily discussed. To date, however, there is no evidence of the impact of gas prices on the labor market. Using administrative employment data from 2012–2020, we find for manufacturing establishments a gas price elasticity of labor demand of −0.02, likely reflecting a scale effect. We also show that a rise in the gas price leads to an increase in establishment closure. A negative impact of the gas price on wages of 2 percent is consistent with rent-sharing. |
| Keywords: | labor demand, gas price, elasticity, wages, establishment closure |
| JEL: | J23 Q31 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16015&r=ene |
| By: | Tal, Gil; Pares, Francisco; Busch, Pablo; Chandra, Minal |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2023–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt1pt8q0zc&r=ene |
| By: | Jeremi Assael (BNPP CIB GM Lab - BNP Paribas CIB Global Markets Data & AI Lab, MICS - Mathématiques et Informatique pour la Complexité et les Systèmes - CentraleSupélec - Université Paris-Saclay); Thibaut Heurtebize (BNP Paribas Asset Management, Quantitative Research Group, Research Lab); Laurent Carlier (BNPP CIB GM Lab - BNP Paribas CIB Global Markets Data & AI Lab); François Soupé (BNP Paribas Asset Management, Quantitative Research Group, Research Lab) |
| Abstract: | As of 2022, greenhouse gases (GHG) emissions reporting and auditing are not yet compulsory for all companies, and methodologies of measurement and estimation are not unified. We propose a machine learning-based model to estimate scope 1 and scope 2 GHG emissions of companies not reporting them yet. Our model, designed to be transparent and completely adapted to this use case, is able to estimate emissions for a large universe of companies. It shows good out-of-sample global performances as well as good out-of-sample granular performances when evaluating it by sectors, countries, or revenue buckets. We also compare the model results to those of other providers and find our estimates to be more accurate. Explainability tools based on Shapley values allow the constructed model to be fully interpretable, the user being able to understand which factors split explains the GHG emissions for each particular company. |
| Keywords: | sustainability, disclosure, greenhouse gas emissions, machine learning, interpretability, carbon emissions, scope 1, scope 2, interpretable machine learning |
| Date: | 2023–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03905325&r=ene |
| By: | Echeverría, Lucía; Gimenez-Nadal, J. Ignacio; Molina, José Alberto |
| Abstract: | Mobility gives individuals access to different daily activities, facilities, and places, but at the cost of imposing environmental externalities. The sustainable growth of society is linked to green mobility (e.g., public transport, walking, cycling) as a way to alleviate individual carbon footprints. This study explores the socio-demographic profile of individuals performing green travel (public and active modes of transport) and identifies cross-country differences in green travel behavior. We rely on information from the Multinational Time Use Study, MTUS, for Bulgaria, Canada, Spain, France, Hungary, Italy, the Netherlands, the United Kingdom, and the United States, from 2000 to 2019. We estimate Ordinary Least Squares regressions modelling individual decisions regarding green mobility. Our results indicate that the socio-demographic and family profile of travelers is not homogenous across green modes of transport, with walking as a mode of travel exhibiting a much more consistent profile, across countries, in comparison to the use of public transport and cycling. Results indicate that some countries are more prone to green travel, and that transport infrastructure is a factor in the proportion of time spent on both public and active transport. Our findings help in understanding who is committed to green mobility, while revealing interesting systematic differences across countries |
| Keywords: | Perfil del Viajero; Medios de Transporte; Transporte No Motorizado; Transporte Público; 2000-2019; |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:3755&r=ene |
| By: | Sanjit Dhami |
| Abstract: | We consider technology choices between green and brown technologies by firms. We use insights from complexity theory and also take account of true uncertainty in designing public policy. The green technology offers relatively higher returns to scale from adoption, and there are type-contingent differences among firms in their suitability for the green technology. We show that the long-run outcome is unpredictable despite there being no fundamental uncertainty in the model; small accidents of history can lead to large effects; and the final outcome is an ‘emergent property’ of the system. We describe the role of taxes and subsidies in facilitating adoption of the green technology. We also consider issues of the conflict between optimal Pigouvian taxes and green technology adoption; optimal temporal profile of subsidies; and the desirability of an international fund to provide technology assistance to poorer countries. Despite the simplicity of the framework, several novel results are demonstrated that typically do not arise in the standard analysis of the problem. |
| Keywords: | technology choice, climate change, complexity, lock-in effects, increasing returns, green subsidies, public policy, Pigouvian taxes, stochastic dynamics |
| JEL: | D01 D21 D90 H32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10364&r=ene |
| By: | Benoliel, Peter; Hernandez Rios, Kevin; Garcia Sanchez, Juan Carlos; Tal, Gil |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2023–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7qh0x0mf&r=ene |
| By: | Ibrahim A. Adekunle (Babcock University, Nigeria); Olukayode E. Maku (Olabisi Onabanjo University, Nigeria); Tolulope O. Williams (Olabisi Onabanjo University, Nigeria); Judith Gbagidi (Africa PPP Advisory Services); Emmanuel O. Ajike (Babcock University, Nigeria) |
| Abstract: | Purpose With heterogeneous findings dominating the growth and natural resources relations, there is a need to explain the variances in Africa’s growth process as induced by robust measures of factor endowments. This study used a comprehensive set of data from the updated database of the World Bank to capture the heterogeneous dimensions of natural resource endowments on growth with a particular focus on establishing complementary evidence on the resource curse hypothesis in energy and environmental economics literature in Africa. These comprehensive data on oil rent, coal rent, and forest rent could provide new and insightful evidence on obscure relations on the subject matter. Design/methodology/approach This paper considers the panel vector error correction (PVECM) procedure to explain changes in economic growth outcomes as induced by oil rent, coal rent and forest rent. The consideration of the (PVECM) was premised on the panel unit root process that returns series that were cointegrated at the first-order differentials. Findings The paper found positive relations between oil rent, coal rent and economic development in Africa. Forest rent, on the other hand, is inversely related to economic growth in Africa. Trade and human capital are positively related to economic growth in Africa, while population growth is negatively associated with economic growth in Africa. Research limitations/implications Short-run policies should be tailored toward the stability of fiscal expenditure such that the objective of fiscal policy, which is to maintain the condition of full employment, economic stability, and stabilise the rate of growth, can be optimised and sustained. By this, the resource curse will be averted, and productive capacity will increase, leading to sustainable growth and development in Africa, where conditions for growth and development remains inadequately met. Originality/value The originality of this paper can be viewed from the strength of its arguments and methods adopted to address the questions raised in this paper. This study further illuminated age-long obscure relations in the literature of natural resource endowment and economic growth by taking a disaggregated approach to the component-by-component analysis of natural resources factors (the oil rent, coal rent and forest rent) and their corresponding influence on economic growth in Africa. This pattern remains underexplored mainly in previous literature on the subject. Many African countries are blessed with an abundance of these different natural resources in varying proportions. The misuse and mismanagement of these resources along various dimensions have been the core of the inclination toward the resource curse hypothesis in Africa. Knowing how growth conditions respond to changes in the depth of forest resources, oil resources and coal resources could be a useful pointer in Africa's overall use and management. This study contributed to the literature on natural resource-induced growth dynamics by offering a generalisable conclusion as to why natural resource-abundance economies are prone to poor economic performance. This study further asks if mineral deposits are a source or reflection of illgrowth and underdevelopment in African countries. |
| Keywords: | Natural Resource Endowment; Economic Growth; Resource Curse Hypothesis; PVECM; Africa |
| JEL: | C33 O44 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/015&r=ene |
| By: | David B. Adler; Edson R. Severnini |
| Abstract: | Ground-level ozone has been shown to have significant negative health externalities from short-term exposure, and as such has been regulated by the U.S. Clean Air Act since the 1970s. Ozone is not emitted directly; instead formation occurs due to a complex Leontief-like combination of air pollutants, under sunlight and warm temperatures, that results in high levels mid-day and low levels at night. Despite this known relationship, EPA regulations mostly consider the total emissions of ozone precursors and not when these emissions occur. Using hourly data on ambient ozone from 1980-2017 near the U.S. time zone borders, we provide evidence that the 1-hour time difference on either side of a border leads to a nontrivial change in ozone levels in certain hours of the day. We then examine a cap-and-trade program targeting ozone precursor emissions – the NOx Budget Program – finding that while it reduced ozone overall it did not have an economically significant effect on the timing of those emissions. We conclude by outlining a possible policy approach to account for the time-varying value of reductions in ozone precursor emissions. |
| JEL: | H22 Q53 Q58 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31069&r=ene |
| By: | Andrea La Nauze; Erica Myers |
| Abstract: | We use an experiment to test whether consumers optimally acquire information on energy costs in appliance markets where, like many contexts, consumers are poorly informed and make mistakes despite freely available information. To test for optimal information acquisition we compare the average utility gain from improved decision making due to information with willingness to pay for information. We find that consumers acquire information suboptimally. We then compare two behavioral policies: a conventional subsidy for energy-efficient products and a non-traditional subsidy paying consumers to acquire information on energy costs. The welfare effects of each policy depend on the benefits of improved decisions versus the losses of mental effort (from the information subsidy) or distorted choices (from the product subsidy). In our context, information subsidies dominate product subsidies. In a variety of settings where decisions are made and information is delivered online, paying for attention could more effectively target welfare improvements. |
| Keywords: | endogenous information acquisition, behavioral bias, information interventions, energy efficiency |
| JEL: | D91 D12 D83 Q41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10335&r=ene |
| By: | David Amaglobeli; Mr. Gee Hee Hong; Emine Hanedar; Celine Thevenot; Mengfei Gu |
| Abstract: | The surge in energy and food prices, which was amplified by Russia’s invasion of Ukraine, has prompted a flurry of policy responses by countries during 2022. The aim of these policy responses was to mitigate social and economic impact of higher prices. In this paper we document announcements of policy measures based on the Database of Energy and Food Price Actions (DEFPA), which was developed based on two rounds of survey responses of IMF country teams conducted in March/April and June/July of 2022. The paper also provides discussion on policy trade-offs when considering appropriate policy responses both for countries with strong and weak social safety nets. Key policy message is that providing targeted support to households in the form of cash transfers is the most cost-effective way of alleviating the burden on vulnerable households and have to be preferred over broad-based mechanisms that prevent international prices to pass through to domestic consumers. |
| Keywords: | Energy prices; food Prices; cost of living; social policy |
| Date: | 2023–03–24 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/074&r=ene |
| By: | Viral V Acharya; Richard Berner; Robert Engle; Hyeyoon Jung; Johannes Stroebel; Xuran Zeng; Yihao Zhao |
| Abstract: | We explore the design of climate stress tests to assess and manage macro-prudential risks from climate change in the financial sector. We review the climate stress scenarios currently employed by regulators, highlighting the need to (i) consider many transition risks as dynamic policy choices; (ii) better understand and incorporate feedback loops between climate change and the economy; and (iii) further explore “compound risk” scenarios in which climate risks co-occur with other risks. We discuss how the process of mapping climate stress scenarios into financial firm outcomes can incorporate existing evidence on the effects of various climate-related risks on credit and market outcomes. We argue that more research is required to (i) identify channels through which plausible scenarios can lead to meaningful short-run impact on credit risks given typical bank loan maturities; (ii) incorporate bank-lending responses to climate risks; (iii) assess the adequacy of climate risk pricing in financial markets; and (iv) better understand and incorporate the process of expectations formation around the realizations of climate risks. Finally, we discuss the relative advantages and disadvantages of using market-based climate stress tests that can be conducted using publicly available data to complement existing stress testing frameworks. |
| Keywords: | climate finance |
| JEL: | G00 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10345&r=ene |
| By: | Gilles Debizet (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes) |
| Abstract: | L'envolée des prix de l'énergie et les doutes sur la sécurité de l'approvisionnement confortent ce qu'un nombre croissant d'acteurs préconisent depuis longtemps, à savoir la relocalisation de la production d'énergie. La relocalisation rejoint le mot d'ordre de résilience mis à l'agenda politique par les campagnes électorales locales de 2020 : la résilience des territoires et des collectifs pour réduire leur dépendance énergétique, autrement dit pour accroître leur autonomie vis-à-vis des entités et des institutions sur lesquelles ils n'ont pas prise. La nouvelle loi d'accélération des énergies renouvelables mise surtout sur les grands parcs éoliens et solaires et les grandes entreprises de l'énergie. Elle ne dit mot sur l'autoconsommation individuelle qui, pourtant, se développe rapidement ; demain, avec l'extension du parc de véhicules électriques (et des batteries), elle risque d'échapper à toute régulation publique et d'instiller de grandes disparités entre les ménages. Entre ces deux échelles, le législateur fait aussi l'impasse sur les communautés énergétiques, qui instaurent des conventions marchandes alternatives au marché spéculatif. Ces communautés existent pourtant déjà, elles orientent l'épargne des ménages vers les énergies renouvelables, contribuent au financement des réseaux publics et accroissent l'acceptabilité des infrastructures de production. Leur montée en puissance est en cours mais pourrait se heurter au régime sociotechnique dominant dans la production de l'électricité, en particulier dans un pays centralisé comme la France, marqué par une alliance entre l'Etat et quelques grandes entreprises pourvoyeuses d'énergie. Le présent article décrit la nature et l'essor des coopératives citoyennes et des opérations d'autoconsommation collective en France. En analysant les acteurs qui portent des projets locaux de production et de fourniture, il met en exergue des modèles relationnels entre producteurs et consommateurs alternatifs au marché dominant et il pointe des reconfigurations émergentes de démocratie énergétique. In fine, il propose trois paradigmes dépassant celui de grand marché européen de l'énergie et permettant de penser des chemins de la transition énergétique vers la neutralité carbone. |
| Date: | 2023–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04068469&r=ene |
| By: | Mandal, Biswajit; Roy Bardhan, Arya |
| Abstract: | The consternation regarding environment is manifold. One of them is environmental quality which has both short-run and long-run implications including sustainable development goals. In view of such apprehension, this paper develops a Heckscher-Ohlin nugget kind of competitive general equilibrium model with four sectors and four factors of production to analyse the effect of tax policy to curb environmental pollution. Surprisingly we find that environmental tax on the polluting sector eventually raises the production of polluting output and widens the wage inequality between skilled and unskilled labour. On the other hand, taxing the non-polluting sector yields the desired outcome in both production and factor income. The possibility of vanishing sector strengthens the counterintuitive results we get in case of taxing the non-polluting sector. Such an intriguing outcome is driven by the recursive nature of structure of the H-O nugget model. We empirically test the efficacy of environmental taxes using panel data of 10 OECD countries for 1997-2020 and find that environmental taxes have a deleterious effect on pollution. |
| Keywords: | General Equilibrium, Environmental Tax, H-O Nugget, Wage Inequality |
| JEL: | F11 F18 F6 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:116961&r=ene |
| By: | Casey B. Mulligan |
| Abstract: | The extent of voluntary cooperation in the presence of externalities is shown as an equilibrium outcome in the supply and demand framework. The analysis uses familiar ingredients to provide a new way of understanding the results of the extensive literature beginning with Buchanan, Coase, Ostrom, Shapley, Telser, Tullock, and Williamson showing that a Pigouvian tax is not the only alternative to independently acting individuals who are coordinated merely through distorted market prices. Voluntary cooperation can have a far different incidence than Pigouvian taxes and subsidies while changing the character of the costs resulting from externalities. The paper discusses applications including forest management, volume discounts, residential associations, energy policy, the scope of planning of household activities, and the role of workplaces in preventing infectious disease. |
| JEL: | D62 D71 H23 L25 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31095&r=ene |
| By: | Vasily Astrov (The Vienna Institute for International Economic Studies, wiiw); Andrei V. Belyi; Tetiana Bogdan; Vladislav L. Inozemtsev |
| Abstract: | Chart of the Month Gas supply cuts as Russia’s weapon in the economic war with the West by Vasily Astrov Gazprom’s gas exit by Andrei V. Belyi By going to war with Ukraine, Russia clearly chose the short-term geopolitical agenda over its longer-term economic interests. In the aftermath of the EU sanctions and Russia’s counter-sanctions, there is only one major gas export route to the EU that remains unaffected by Russia’s supply cuts the one via Turkey. Meanwhile, deliveries via the Yamal-Europe pipeline, Nord Stream 1 and Ukraine have all suffered to varying degrees. Thus, ironically, Gazprom has helped the EU in its efforts to reduce its dependence on Russian gas by two thirds by the end of the year. Opinion Corner Russia’s economic suicide, act 2 by Vladislav Inozemtsev The economic consequences of the recently announced military mobilisation in Russia will be dramatic and manifold. Up to 8% of the male workforce will be lost, consumption and investment will suffer, and new Western sanctions are on the cards. As a result, Russian GDP could decline by 10% this year. Ukraine’s public finances radical change in time of war by Tetiana Bogdan Since the start of the Russian aggression, Ukraine’s government revenues have plunged sharply; by contrast, expenditure has risen on the back of defence spending. So far, the ensuing fiscal gap has been covered by a combination of foreign aid and deficit monetisation; but more foreign aid will be needed to face the upcoming challenges. Monthly and quarterly statistics for Central, East and Southeast Europe |
| Keywords: | gas exports, economic war, Yamal-Europe, Nord Stream, gas transit via Ukraine, TurkStream, partial mobilisation, labour supply, domestic demand, budget revenues, budget expenditures, budget deficit financing, seigniorage |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:wii:mpaper:mr:2022-10&r=ene |
| By: | Tal, Gil; Benoliel, Peter K; Garcia Sanchez, Juan Carlos; Hernandez Rios, Kevin |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2023–04–12 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt5nv441q2&r=ene |