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on Energy Economics |
| By: | Burtraw, Dallas (Resources for the Future); Domeshek, Maya (Resources for the Future) |
| Abstract: | Using its existing authority under the Clean Air Act, the Environmental Protection Agency (EPA) can jump-start the Biden administration’s plan to reduce US greenhouse gas emissions by 52 percent and contribute important air quality benefits in this decade.Under Section 111(d) of the Clean Air Act, the EPA can establish guidelines and require states to develop standards of performance for existing sources of air pollution. These performance standards are emissions limits that the EPA administrator determines are achievable using an adequately demonstrated best system of emissions reductions. This provision has been successfully exercised many times; however, the two times it has been used to regulate carbon dioxide (CO2) emissions at existing electricity-generating units (EGUs), it has failed in the courts. We describe and model an approach that is likely to be more successful, based on the opportunity to use natural gas to cofire with coal to reduce emissions at coal EGUs.The Obama administration took a broad approach in its Clean Power Plan (CPP), which identified performance standards for the entire power system. This approach was stayed (frozen) by the courts for review based on its breadth, since it identified emissions reductions that were conditioned on actions (such as expanded use of renewable energy) that could be taken at sources other than the regulated existing fossil units. The Trump administration withdrew the CPP before the court’s review was complete and, as a replacement, proposed the Affordable Clean Energy (ACE) rule, which in turn was struck down by the courts because it proposed a standard based on a set of technologies that was too narrow, resulting in emissions reductions that would be insignificant.We describe a performance standard, based on the opportunity to cofire with natural gas at coal EGUs, that would address most of the concerns that have been raised before the courts. Natural gas cofiring is already a demonstrated and widespread practice. Although the ACE rule explicitly rejected gas cofiring as a basis for a performance standard, previous analysis provided to EPA indicated that in 2017, gas cofiring occurred at 35 percent of coal EGUs across 33 states. Indeed, if the monthly maximum use of gas at these units were achieved in every month, emissions reductions comparable to those anticipated by all other measures in the ACE rule could be achieved. Because a performance standard based on the opportunity for cofiring applies to an individual facility, it does not raise concerns about measures taken outside regulated emissions sources. This approach is based on a broader set of technologies than those included in the ACE rule and is likely to achieve more significant emissions reductions. Importantly, it would provide a soft landing for coal units that choose to phase out production and reduce emissions at units that continue to operate.We model a natural gas cofiring standard using RFF’s Haiku electricity market model, including gas price forecasts from Annual Energy Outlook 2019, and site-specific estimates of the capital cost to expand gas delivery provided by Natural Resources Defense Council. We identify five key findings. |
| Date: | 2021–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-21-04&r=ene |
| By: | Shawhan, Daniel (Resources for the Future); Cleary, Kathryne (Resources for the Future); Funke, Christoph (Resources for the Future); Witkin, Steven (Resources for the Future) |
| Abstract: | The benefits of additional research, development, and demonstration (RD&D) for advanced energy technologies are likely to greatly exceed the costs. Additional funding like that authorized by the Energy Act of 2020 would generate projected societal benefits averaging $30 billion to $40 billion in present value per technology during 2040–2060. [1]Twenty-six experts in advanced nuclear, advanced geothermal, energy storage, natural gas with carbon capture and sequestration (NG-CCS), and direct air capture (DAC) projected the effects of the additional RD&D funding on the future costs of the technologies. The experts expect the additional funding to reduce the costs of the technologies by 9–30 percent in 2035, compared with the case of no additional funding.Average power sector benefits across the technologies are likely to exceed costs by about 7 times if there is no new national clean energy policy and by more than 10 times if there is a national clean energy standard (CES). Benefits outside the power sector may also be significant and would increase these ratios. An economy-wide analysis for DAC found benefits of 27 times the costs of the additional funding, assuming a national economy-wide emissions policy.Without a CES, the estimated benefits of added RD&D funding are split mainly among lower electricity bills, health benefits, and climate benefits. With a CES, the estimated benefits are mainly in the form of lower electricity bills. Average annual electricity bill savings per household for each technology are about $14 without a CES and $56 with a CES.[1] All dollar values in this brief are in 2020 dollars.[2] Parts of the analysis were also done for a sixth technology, multiday energy storage. See the working paper for details.To read the full issue brief, click "Download" above. The issue brief is a summary of the working paper linked below. |
| Date: | 2021–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-21-03&r=ene |
| By: | Look, Wesley (Resources for the Future); Palmer, Karen (Resources for the Future); Burtraw, Dallas (Resources for the Future); Linn, Joshua (Resources for the Future); Hafstead, Marc (Resources for the Future); Domeshek, Maya (Resources for the Future); Roy, Nicholas (Resources for the Future); Rennert, Kevin (Resources for the Future); Gillingham, Kenneth; Xiahou, Qinrui (Resources for the Future) |
| Abstract: | With the Biden Administration’s recent announcement of the American Jobs Plan and nationally determined contribution (NDC) under the Paris Agreement, and as Congress begins to seriously consider legislation to advance clean energy and cut greenhouse gas emissions, RFF researchers have been investigating environmental outcomes under various policy scenarios. In this issue brief, we provide a snapshot from this work—including estimates of energy-related CO2 emissions and cost-effectiveness. |
| Date: | 2021–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-21-02&r=ene |
| By: | Lee, Sul-Ki (Korea Institute for Industrial Economics and Trade) |
| Abstract: | Korea lacks an abundance of natural resources, and has not traditionally been recognized as a major player in the energy industry. Accordingly, Korean energy policy has focused on the national power generation mix, rather than on industrial development. This trend has continued until very recently; only now is there growing momentum for expanding the proportion of renewable energy in the energy mix. However, there is an increasing need to cultivate new and renewable energy industries such as hydrogen, wind power, and solar power individually. We see this manifest in the new organizational re-composition of government ministries. To enhance the competitiveness of the domestic hydrogen industry during the transition to a hydrogen economy, it is essential to implement successful industrial policies. The purpose of this study is to examine the development of Korean hydrogen industry from an industrial research prospective. Specifically, the works outlines a strategy for fostering the hydrogen industry to facilitate a quick transition to a hydrogen economy. |
| Keywords: | hydrogen; hydrogen energy; renewable energy; alternative energy; energy policy; renewables policy; energy development strategy; renewables strategy; Korea |
| JEL: | Q40 Q41 Q42 Q43 Q48 Q49 Q53 Q54 Q55 Q56 Q58 |
| Date: | 2023–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2023_011&r=ene |
| By: | Diego R. Känzig |
| Abstract: | This paper studies the economic impacts of carbon pricing. Exploiting institutional features of the European carbon market and high-frequency data, I document that a tighter carbon pricing regime leads to higher energy prices, lower emissions and more green innovation. This comes at the cost of a fall in economic activity, which is borne unequally across society: poorer households lower their consumption significantly while richer households are less affected. The poor are more exposed because of their higher energy share and, importantly, also experience a larger fall in income. Targeted fiscal policy can help alleviate these costs while maintaining emission reductions. |
| JEL: | E32 E62 H23 Q54 Q58 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31221&r=ene |
| By: | Kaitila, Ville |
| Abstract: | Abstract A drastic decline in global greenhouse gas (GHG) emissions is needed to stop the climate change. This requires a variety of political and market mechanisms. Europe is globally at the forefront among the industrialised countries in reducing its GHG emissions. We analyse the development of emission intensities – GHG emissions relative to value added produced – and use a panel data to further our understanding of their evolution at the level of industries in 2008–2020 in Europe. We find that labour productivity is negatively associated with changes in GHG-emission intensities. Furthermore, higher investments, higher carbon prices within the ETS mechanism, and higher environmental taxes are associated with lower GHG-emission intensities. Consequently, policies that promote productivity growth and financial incentives to decrease emissions lead to lower emissions. Finland’s carbon competitiveness, as measured by relative GHG-emission intensities, varies by industries. See also Etla Brief no 123 Carbon Competitiveness is Shaped in Firms (in Finnish). |
| Keywords: | Greenhouse gas emissions (GHG), GHG-intensity, Carbon competitiveness, Productivity, ETS |
| JEL: | C23 O44 Q54 Q56 |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:139&r=ene |
| By: | Mathias Mier |
| Abstract: | European energy crisis has three elements: skyrocketing prices for energy carriers such as natural gas, coal, as well as electricity, reduced nuclear power plant availability in France, and lower hydro power generation in Europe. This paper decomposes the effects of those elements on power markets and the EU ETS. Permanently higher natural gas prices reduce the canceling volume in the MSR by 425 million and prevent gas-CCS from being competitive in the long-run. Electricity prices are almost unaffected because gas-CCS is substituted by similarly competitive nuclear. Half of the 2022 European electricity price increase can be traced back to higher energy prices (from 36 to 143 e/MWh), whereas the other half (from 143 to 247 e/MWh) comes from French nuclear and European hydro problems. The decision to stretch the operation of three German nuclear power plants to counteract against those crises brings down European (German) electricity prices by 0.89% (2.47%) in 2023. Extending them for seven years after stretching, starting from September 2023, brings down electricity prices by 1.88% (4.8%) in 2024. |
| Keywords: | Electricity prices, natural gas prices, coal prices, nuclear power, hydro power, EU ETS, market stability reserve, power market modeling, intertemporal optimization |
| JEL: | C61 H21 H23 L94 Q41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_394&r=ene |
| By: | Eskander, Shaikh M.S.U.; Nitschke, Jakob |
| Abstract: | We investigate the progress of the UK universities in greening their energy sources in line with the UK's goal of becoming a net-zero economy by 2050. Using the HESA estate management data for 116 universities over 2012-13 to 2018–19, we employ a Log Mean Divisa Index decomposition method within an extended Kaya identity framework to decouple the changes in total carbon emissions from a range of variables, with a special focus on the impact of different energy sources on energy use and carbon efficiency measures. Overall, between 2012-13 and 2018–19, universities have reduced emissions by 29% although their energy consumption remained mostly stable, implying that these reductions mostly stemmed from reductions in emission coefficient effect (which measures carbon efficiency of energy generation) by 24% and energy intensity effect by 25%. Consistently, estimated correlation coefficients confirm that emission coefficient, intensity, and affluence effects are major contributors behind the annual change in total emissions, with estimated correlation coefficients being 0.42, 0.66, and −0.24, respectively. The share of renewable energy sources was reduced by 2.2%, which is a major reason, in addition to increased number of students, behind the sector's overall failure achieve the 2020 goal of reducing emissions by 43% from the 2005 level. Finally, our results also expose considerable regional variations in mitigating and worsening factors behind emissions that calls for stronger coordination and supervision by policymakers. |
| Keywords: | emissions; energy; Kaya identity; university |
| JEL: | Q41 Q42 |
| Date: | 2021–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:110764&r=ene |
| By: | Kaitila, Ville |
| Abstract: | Abstract Greenhouse gas (GHG) emissions are now one factor that affects firms’ broader competitiveness. We analyse the development of emission intensities – GHG emissions relative to value added produced – at the level of industries in 2008–2020 in Europe. Finland’s carbon competitiveness, as measured by relative GHG-emission intensities, is average but varies by industries. Competitiveness is good in most industries, but it falls behind the EU27 average in agriculture, paper industry, construction, and land transportation, and behind Sweden and/or Germany also in basic metals, energy industry, and sewerage and waste management. We find that labour productivity is negatively associated with the level of and changes in GHG-emission intensities in Europe. Furthermore, higher investments, higher carbon prices within the ETS mechanism, and higher environmental taxes are associated with lower emission intensities. Consequently, policies that promote productivity growth and financial incentives to decrease emissions are likely to help reach lower emissions. See also Etla Report no 139 Labour Productivity and Development of Carbon Competitiveness: Industry-Level Evidence from Europe. |
| Keywords: | Greenhouse gas emissions, GHG-intensity, Carbon competitiveness, Productivity, ETS |
| JEL: | C23 O44 Q54 Q56 |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:rif:briefs:123&r=ene |
| By: | Guinea, Laurentiu; Ruiz, Jesús; Puch, Luis A. |
| Abstract: | This paper investigates the impact of anticipated (news) shocks on renewable and fossil energy use on the US economy. Using structural vector autoregressions (SVARs), we identify the news shocks captured in energy stock market indexes. Our findings show that renewable and fossil energy news shocks significantly affect economic activity, revealing the tensions between the traditional fossil fuel-based industries and the emerging green technology-based ones. We further identify news shocks on Economic Policy Uncertainty (EPU) index, as policy is a key factor driving the changes in the energy mix. First, we show that the identified anticipated shocks have very different propagation mechanisms from traditional surprise shocks. Then, we find that the combination of news shocks to energy stock prices and economic policy uncertainty jointly account for about 90% of the variability of output, job openings and house prices. To interpret our findings, we use a DSGE model that incorporates fossil and renewable energy sectors and news shocks as a driving force, and we show that the propagation mechanisms of news shocks in the model are consistent with our empirical observations. Our study illustrates on the critical interaction between energy news and economic policy uncertainty in affecting the real economy in the transition from dirty to clean energy technologies. |
| Keywords: | News Shocks; Renewable Energy; Economic Policy Uncertainty; Expectations |
| JEL: | E2 E6 E32 E44 Q42 Q43 Q58 |
| Date: | 2023–05–24 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:37355&r=ene |
| By: | Daniela Kletzan-Slamanig (WIFO); Claudia Kettner |
| Abstract: | For the project "Social Aspects of Market-Based Instruments for Greenhouse Gas Emission Reductions – SoMBI" Austria and Poland were chosen as case study countries to compare the impacts of an EU-wide carbon price combined with different revenue recycling policies. The detailed analysis will focus on the macroeconomic and greenhouse gas emission effects of the introduction of the carbon pricing and revenue recycling schemes as well as the distributional effects of such price mechanisms for different household types. The two countries were chosen as they differ considerably in terms of their energy systems and economic conditions. Further differences regard the level of ambition of the respective domestic climate policies as well as the priorities set in energy policies. The aim of this paper is to provide indications of the sectors that are emission-intensive and/or labour-intensive and are likely to gain or lose from the chosen revenue recycling mechanisms. Moreover, the findings will provide background information for the interpretation of modelling results for the various carbon pricing and recycling options. |
| Date: | 2023–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2023:i:661&r=ene |
| By: | Kronvall, Anna |
| Abstract: | This working paper addresses large-scale projects, often known as megaprojects, and their disruptive effects on policy and planning. Drawing on literature from various disciplines, the first part of the paper traces large-scale project development in the 20th and 21st century and reflects on different kinds of projects, the intentions behind their implementation, and the impacts they have on places, systems, and communities. The second part of the paper examines the concept of the green transition and the role that large-scale renewable energy (RE) projects play in achieving it. Wind power farms, solar power parks, hydropower dams and gigafactories for electric vehicle and battery manufacturing are examples of such projects. They are promoted by decision-makers and investors alike as imperative in transforming energy and mobility systems, but are often met with local resistance in the places where they are implemented. The paper discusses the nature and significance of such projects, and reflects on their wider implications for local communities, governance and institutions. Disruptions triggered by large-scale RE projects accentuate sometimes conflicting values (e.g., climate mitigation, nature conservation, economic growth), and pose challenges for governance at different scales and across different sectors. The need to accelerate RE expansion also brings regulatory issues to the fore, as project implementation is often obstructed by lengthy and complex permitting procedures. By examining large-scale RE projects, the paper draws attention to the diverging interests, values and prospects of future that materialize in the context of the green transition. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:irsdia:12023&r=ene |
| By: | Ekaterina Alekhanova (Department of Economics, Carleton University) |
| Abstract: | The paper reports the results of evaluating the hourly impact of a behavioral intervention tested in a randomized controlled trial. Under the program, a randomly selected group of households in Alberta was provided visual information on their home heat loss. I find that the households conserve the same amount of electricity during peak and off-peak electricity demand hours, i.e. the intervention has failed to target peak times, so accounting for the intraday distribution of the electricity savings is not important when measuring the social benefits of the program. The most plausible reason for the flat savings profile could be the absence of hourly variation in retail electricity rates. As a policy recommendation, the study suggests implementing retail electricity prices fluctuating within a day. |
| Keywords: | Peak Electricity Demand, Behavior Nudge, Energy Efficiency, Randomized Controlled Trial |
| Date: | 2023–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:car:carecp:23-01&r=ene |
| By: | Carradori, Olimpia; Giuzio, Margherita; Kapadia, Sujit; Salakhova, Dilyara; Vozian, Katia |
| Abstract: | Using evidence from the EU emissions trading system, we collect verified emissions of close to 4000 highly polluting and mostly non-listed firms responsible for 26% of EU’s emissions. Over the period 2013 - 2019, we find a non-linear relationship between leverage and emissions. A firm with higher leverage has lower emissions in subsequent years. However, when leverage exceeds 50%, a further increase is associated with higher emissions. Our difference-in-differences approach sheds light on the existence of a group of firms that are too indebted to successfully accomplish the low-carbon transition, even when they face a steep increase in the cost of their emissions. JEL Classification: C58, E58, G32, Q51, Q56, Q58 |
| Keywords: | climate change, debt finance, EU ETS, low-carbon transition, transition finance |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232813&r=ene |
| By: | Döttling, Robin; Rola-Janicka, Magdalena |
| Abstract: | We analyze jointly optimal carbon pricing and leverage regulation in a model with financial constraints and endogenous climate-related transition and physical risks. The socially optimal emissions tax is below the Pigouvian benchmark (equal to the direct social cost of emissions) when emissions taxes amplify financial constraints, or above this benchmark if physical climate risks have a substantial impact on collateral values. Additionally introducing leverage regulation can be welfare-improving only if tax rebates are not fully pledgeable. A cap-and-trade system or abatement subsidies may dominate carbon taxes because they can be designed to have a less adverse effect on financial constraints. JEL Classification: D62, G28, G32, G38, H23 |
| Keywords: | carbon pricing, climate risk, financial constraints, financial regulation, Pigouvian tax |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232812&r=ene |
| By: | Martinez Cillero, Maria (European Commission); Gregori, Wildmer Daniel (Banco de Portugal); Bose, Udichibarna (University of Essex) |
| Abstract: | This analysis explores the implications of technological shifts towards greener and sustainable innovations on acquisition propensity between firms with different technological capacities. Using a dataset of completed control acquisition deals over the period of 2009-2020 from 23 OECD countries, we find that innovative firms are more likely to acquire innovative target companies. We also find that green acquirors (i.e., firms with green patents) are more inclined to enter into acquisition deals with green firms, possibly due to their technological proximity and informational advantages which further enhances their post-acquisition green innovation performances. Our results also show an increase in green acquisitions after the Paris Agreement by non-green acquiror firms, and these are more pronounced for acquirors in climate policy-relevant sectors and countries with low environmental standards than their counterparts. However, green acquisitions after the Paris Agreement do not show any significant impact on their post-acquisition innovation performances, raising concerns related to greenwashing behaviour by investing firms. |
| Keywords: | Acquisitions, green patents, firm innovation, Paris agreement, green transition |
| JEL: | G34 O30 Q54 Q55 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:jrs:wpaper:202304&r=ene |
| By: | Favour C. Onuoha (Evangel University Akaeze, Nigeria); Stephen K. Dimnwobi (Nnamdi Azikiwe University, Awka, Nigeria); Kingsley I. Okere (Gregory University, Uturu, Nigeria); Chukwunonso Ekesiobi (Igbariam, Nigeria) |
| Abstract: | Prompted by the renewable energy funding challenge in sub-Saharan Africa (SSA) amid surging public debt in the region, this study investigates the moderating role of governance quality in the relationship between public debt and REC in the region using the Feasible Generalized Least Squares. The study established that public debt positively impacts REC, but the interactive effect of governance quality and public debt impedes REC. Policy prescriptions are put forward to address the funding challenges of transitioning to a green energy future in SSA by highlighting the critical role of governance. |
| Keywords: | Public Debt, Renewable Energy Consumption, Governance Quality, Sub-Saharan Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/028&r=ene |
| By: | R. Le Frioux; A. de Palma; N. Blond (Université de Cergy-Pontoise, THEMA) |
| Abstract: | This research builds an integrated chain of models to compute the economic costs of population exposure to air pollution from roads. The framework uses data with a high geographical resolution (1 km x 1 km), a mobility module to simulate population movements, and a Gaussian dispersion model-based exposure model to evaluate population air pollution exposure and the related costs. This paper investigates the impact of two policies on La Réunion, a French island.: replacing old vehicles with electric ones and allowing flexible departure times for commuting trips. |
| Keywords: | dynamic traffic simulation, air pollution, road traffic pollution, population exposure costs, integrated chain of models, electric vehicles. |
| JEL: | I18 L91 L92 P25 R41 Q5 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2023-09&r=ene |
| By: | Fateh Belaïd (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Ahmed Elsayed; Anis Omri |
| Abstract: | With the growing pressure from the adverse impact of environmental pollution and climate change, the deployment of renewable sources is becoming one of the economic priorities for governments worldwide. Despite potential gains of renewable sources, little evidence is provided in the literature about the determinants of renewable energy deployment in the MENA region. In particular, whether political stability, governance quality and financial development matter or not for unleashing the potentials of renewable energy programs. To this end, this paper aims to fill the gap by examining the impact of political stability, quality of governance and institutions, and financial development on the deployment of renewable energy production in 9 selected MENA countries using annual data over the period 1984-2014. Accordingly, an innovative panel quantile regression model with non-additive fixed effect has been developed to tackle this issue. Our findings confirm that the effect of political stability is clearly heterogeneous and supports earlier claims about the importance of political stability to foster investments in the renewable energy sector. Findings also show that financial development has a positive impact on renewable energy production. In addition, we also find that the interaction term between governance effectiveness and financial development is negative for the lower quantiles but positive for the highest quantiles. These findings support our hypotheses and suggest that political stability, governance effectiveness, and financial development are essential drivers for promoting renewable energy production in the MENA region. |
| Keywords: | Renewable energy, Political stability, Financial development, Governance, Panel quantile, MENA Region |
| Date: | 2021–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03272568&r=ene |
| By: | Torijano, Eugenio |
| Abstract: | En este documento se presentan cuadros regionales y nacionales con datos estadísticos del subsector hidrocarburos de los ocho países que conforman el Sistema de la Integración Centroamericana (SICA): Belice, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panamá y la República Dominicana. Ha sido elaborado gracias a la colaboración de las instituciones nacionales y regionales del sector petrolero de los países del SICA. El informe consta de seis grupos de cuadros, todos referidos al petróleo (petróleo crudo y productos derivados) y gas natural: i) valor de las importaciones y precios; ii) balances de petróleo, derivados y gas natural; iii) consumo interno de hidrocarburos; iv) consumo de energía proveniente de hidrocarburos; v) procedencia de las importaciones y la capacidad de almacenamiento, y vi) estructura de los mercados. La sección de gráficos y mapas se divide en cuatro grupos: i) procedencia de las importaciones, ii) evolución y estructura de los precios de los combustibles, iii) consumo de los derivados del petróleo y gas natural, y iv) impacto de las importaciones en la balanza comercial. |
| Keywords: | COMBUSTIBLES, HIDROCARBUROS, PETROLEO, CONSUMO, IMPORTACIONES, EXPORTACIONES, PRECIOS DEL PETROLEO, RECURSOS ENERGETICOS, ESTADISTICAS DE ENERGIA, FUELS, HYDROCARBONS, PETROLEUM, CONSUMPTION, IMPORTS, EXPORTS, PETROLEUM PRICES, ENERGY RESOURCES, ENERGY STATISTICS |
| Date: | 2023–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:48855&r=ene |
| By: | Fetzer, Thiemo (University of Warwick, CAGE, NIESR and CEPR) |
| Abstract: | The invasion of Ukraine has led to an unprecedented increase in energy prices in much of Western Europe with policy makers actively intervening in energy markets to cushion the shock. The UK’s policy response stands out: the energy price guarantee (EPG) was entirely untargeted and is, in real terms, much less generous to those living in properties with low energy efficiency. Using granular data and following a documented research approach this paper documents that areas more exposed to the energy price shock saw a notable increase in burglaries and anti-social behaviour: the energy price shock is responsible for a 6 to 10 percent increase in burglaries and a 9 to 24 percent increase in police reported anti-social behaviour between October 2022 to March 2023 inclusive. A quantification of policy alternatives suggests that a more targeted energy support package and/or a more energy efficient housing stock could have resulted in a drastically less pronounced uptick in crime. |
| Keywords: | crime, welfare, instability, climate crisis, cost-of-living JEL Classification: Q40, Q48, K42 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:662&r=ene |
| By: | Bandeira Morais, Margarida; Iammarino, Simona; Lee, Neil |
| Abstract: | The concept of economic complexity, introduced by Hidalgo and Hausmann {2009), suggests that countries' knowledge and capabilities can be inferred through their ability to export a wide range of products relative to the rest of the world. The associated Economic Complexity Index {ECI) has since grown in popularity as a way of predicting countries' economic growth, income inequality, and human development, among other outcomes. However, the applicability of this concept across different contexts has remained unquestioned. We argue that the unique characteristics of natural resource dependent countries are largely disregarded. Using the ECI for 179 countries from 1995 to 2019, we focus on the case of the Gulf Cooperation Council countries {GCCs), generally considered as high- income economies heavily reliant on oil and natural gas exports. While we find that the link between the ECI and subsequent economic growth observed across countries holds for the GCC and other oil-dependent countries, our analysis exposes important ways in which the ECI is affected by the high dependence on oil and its price volatility. Contrary to existing literature, we found no association between economic complexity and economic growth within countries over time. Our analysis calls for more caution when relying on economic complexity measures for policy-making and highlights the need for additional and more granular analysis of different contexts, particularly those heavily reliant on natural resources. |
| Keywords: | Economic Complexity Index; economic growth; natural resources; oil-dependency; GCC |
| JEL: | J1 |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118788&r=ene |
| By: | Saussay, Aurélien; Zugravu-Soilita, Natalia |
| Abstract: | Most analyses of the impact of heterogeneous environmental policy stringency on the location of industrial firms have considered the relocation of entire activities – the well-known pollution haven hypothesis. Yet international enterprises may decide to only offshore a subset of their production chain – the so-called pollution offshoring hypothesis (POH). We introduce a simple empirical approach to test the POH combining a comprehensive industrial mergers and acquisitions dataset, a measure of sectoral linkages based on input-output tables and an index score of environmental policy stringency. Our results confirm the impact of relative environmental policy stringency on firms’ decisions to engage in cross-country M&As. Our findings also indicate that environmental taxation have a stronger impact on international investment decisions than standards-based policies. Further, we find that transactions involving a target firm operating in a sector upstream of the acquirer are more sensitive to environmental policy stringency, especially when that sector is highly pollution-intensive. This empirical evidence is consistent with the pollution offshoring hypothesis. |
| Keywords: | FDI; pollution offshoring; global supply chain; firm location; environmental regulation; Centre for Climate Change Economics and Policy grant (ES/R009708/1);Climate SOLSTICE project JUST-DECARB (ES/V013971/1);PRINZ (ES/W010356/1); Leverhulme Early Career Fellowship (ECF/2021/536); Grantham Foundation for the Protection of the Environment; Elsevier deal |
| JEL: | D20 F23 Q28 |
| Date: | 2023–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118352&r=ene |
| By: | Josse Delfgaauw (Erasmus University Rotterdam); Otto Swank (Erasmus University Rotterdam) |
| Abstract: | Due to taxes and subsidies, gasoline prices vary dramatically across countries. Externalities cannot fully account for this. We develop a simple political-economic model that shows that group interests, resulting from the composition of a country’s car fleet, help to explain differences in gasoline taxes even among countries with identical fundamentals. In the model, citizens’ car ownership is endogenous, which can yield multiple equilibria. Our model demonstrates the possibility of a society in a climate trap where a low gasoline tax reflects the views of a majority, but another majority would benefit from transitioning to an equilibrium with a higher gasoline tax and fewer emissions. |
| Keywords: | median voter, gasoline taxes, multiple equilibria. |
| JEL: | D62 D72 H23 Q58 |
| Date: | 2023–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20230026&r=ene |
| By: | Camille Salesse (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | I estimate the relationship between income, the number of days of exposure to the four main air pollutants and the proportion of "cocktail days" with French municipal data over the period 2012-2018. I find contrasting results between rural and urban areas. The most affluent urban municipalities have on average a lower number of pollution days compared to the poorest urban municipalities. In urban areas, the pollution days are composed of an equal proportion of cocktail days between the poorest and the most affluent municipalities. On the other hand, in the rural areas the better-off municipalities have on average a higher number of days of pollution, composed of more toxic mixtures, compared to the poorer municipalities. I also show that the pollution levels and the difference in the number of pollution days between the better-off and poorer municipalities are higher in urban areas. |
| Keywords: | air pollution, cocktail, inequality, environmental justice |
| Date: | 2022–12–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-03882438&r=ene |
| By: | Pierre Jacques (UCL - Université Catholique de Louvain = Catholic University of Louvain); Louis Delannoy (Inria Grenoble - Rhône-Alpes - Inria - Institut National de Recherche en Informatique et en Automatique, LJK - Laboratoire Jean Kuntzmann - Inria - Institut National de Recherche en Informatique et en Automatique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Baptiste Andrieu (UGA - Université Grenoble Alpes, The Shift Project - Redesigning the Economy to Achieve Carbon Transition); Devrim Yilmaz (AFD - Agence française de développement); Hervé Jeanmart (UCL - Université Catholique de Louvain = Catholic University of Louvain); Antoine Godin (AFD - Agence française de développement) |
| Abstract: | The biophysical foundations of socio-economic systems are underrepresented in the vast majority of macroeconomic models. This lack is particularly troublesome when considering the links between energy, matter and the economy in the context of the energy transition. As a remedy, we present here a biophysical stock-flow consistent macroeconomic model calibrated at the global scale, that combines detailed bottom-up estimates for the high capital intensity of renewable energies and the decreasing energy return on investment (EROI) of fossil fuels. We find that the completion of a global energy transition scenario compatible with the 1.5 °C objective of the Paris Agreement leads to a decrease of the system's EROI and to high investment share, employment and inflation trends, characteristic of a "war economy". Our results further indicate that a slower growth rate eases the transition, and call for further work on post-growth scenarios studies. |
| Keywords: | Ecological macroeconomics, Stock-flow consistent modelling, Energy transition, Energy return on investment |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04087628&r=ene |
| By: | Ludovic A. Julien; Anicet Kabre; Louis de Mesnard |
| Abstract: | We introduce polluting emissions in a sequential noncooperative oligopoly model of bilateral exchange. In one sector a leader and a follower use polluting technologies which create negative externalities on the payoffs of strategic traders who belong to the other sector. By modeling emissions as a negative externality, we show that the leader pollutes more (less) than the follower when strategies are substitutes (complements). Then, we consider the implementation of public policies to control the levels of emissions, namely two taxation mechanisms and a permit market. We study the effects of these public policies. Moreover, we determine the conditions under which these public policies can implement a Pareto-improving allocation. |
| Keywords: | Stackelberg competition; pollution; fiscal policy; permit market |
| JEL: | C72 D43 Q50 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2023-14&r=ene |
| By: | Simon Briole (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Augustin Colette (INERIS - Institut National de l'Environnement Industriel et des Risques); Emmanuelle Lavaine (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | While a sharp decline in air pollution has been documented during early Covid-19 lockdown periods, the stability and homogeneity of this effect are still under debate. Building on pollution data with a very high level of resolution, this paper estimates the impact of lockdown policies on P M 2.5 exposure in France over the whole year 2020. Our analyses highlight a surprising and undocumented increase in exposure to particulate pollution during lockdown periods. This result is observed during both lockdown periods, in early spring and late fall, and is robust to several identification strategies and model specifications. Combining administrative datasets with machine learning techniques, this paper also highlights strong spatial heterogeneity in lockdown effects, especially according to long-term pollution exposure. |
| Keywords: | air pollution, P M 2.5, lockdown, spatial heterogeneity, machine learning, Covid-19 |
| Date: | 2023–04–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-04084912&r=ene |
| By: | Hyeyoon Jung |
| Abstract: | A growing number of climate-related policies have been adopted globally in the past thirty years (see chart below). The risk to economic activity from changes in policies in response to climate risks, such as carbon taxes and green subsidies, is often referred to as transition risk. Transition risk can adversely affect the real economy through the banking sector. For example, a shock to borrowers’ transition risk can impair their ability to repay, which can then lead to an amplified effect on banks’ current and expected future profits, resulting in a systemic undercapitalization of banks. In a recent Staff Report co-authored with Robert Engle and Richard Berner, we examine whether banks are sufficiently capitalized to absorb losses during stressful conditions due to heightened climate (transition) risk. |
| Keywords: | climate; climate risk; financial stability; stress testing; systemic risk |
| JEL: | G1 G2 |
| Date: | 2023–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:96024&r=ene |
| By: | Alistair Ulph; David Ulph |
| Abstract: | Faced with a global emissions problem such as climate change we know that if countries' emissions decisions are made in an independent and self-interested fashion the outcome can be very far from optimal. One proposed solution is to have countries act more morally by co-operating and so taking account of the impact of their emissions decisions on the welfare of other countries. However, if the decision to co-operate is made in a self-interested fashion the standard non-cooperative model of IEAs yields the pessimistic conclusion that the more serious the environmental problem the smaller will be the equilibrium membership of an IEA. Our paper examines the implications for emissions, IEA membership and welfare of assuming that countries make both emissions and IEA membership decisions in the alternative moral fashion of acting as imperfect Kantians as defined by Alger and Weibull (2013). A similar approach has been taken in Eichner and Pethig (2022) who show that the grand coalition (and first-best) can be achieved when countries have a weight on Kantian behaviour greater than a critical value below 2/3. We argue that their approach to modelling the membership decision of imperfect Kantians is problematic and propose an alternative approach. We show that (i) for any weight attached to Kantian behaviour, the equilibrium level of IEA membership and resulting global welfare is higher using our model; (ii) consequently achieving the grand coalition and hence first-best does not require such a high weight on Kantian behaviour; (iii) acting cooperatively and in a Kantian fashion are complementary rather than substitute moral approaches to achieving the first best. |
| Keywords: | international environmental agreements; moral behaviour; Kantian ethics |
| JEL: | C72 Q50 Q58 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:man:sespap:2302&r=ene |
| By: | William D. Nordhaus; Douglas Rivers |
| Abstract: | Are speculators driving up oil prices? Should we raise energy prices to slow global warming? The present study takes a small number of such questions and compares the views of economic experts with those of the public. This comparison uses a panel of more than 2000 respondents from YouGov with the views of the panel of experts from the Initiative on Global Markets at the Chicago Booth School. We found that most of the US population is at best modestly informed about major economic questions and policies. The low level of knowledge is generally associated with the intrusion of ideological, political, and religious views that challenge or deny the current economic consensus. The intruding factors are highly heterogeneous across questions and sub-populations and are much more diverse than the narrowness of public political discourse would suggest. Many of these findings have been established for scientific subjects, but they appear to be equally important for economic views. |
| JEL: | C8 E7 G53 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31217&r=ene |
| By: | Simon Mathex (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Lisette Hafkamp Ibanez (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | The rebound effect occurs when improvements in energy efficiency result in lower energy savings than expected due to changes in behavior. These behavioral changes can be caused by an economic compensation and a moral compensation. For moral compensation, we consider moral licensing effect, but also the case of moral cleansing effect. The objective of our paper is to distinguish the economic and moral compensation in the rebound effect. To do so, we propose a theoretical model and an online experiment with 1622 subjects. Our experimental results show that an improvement in energy efficiency leads to a rebound effect through economic compensation. Concerning moral compensation, we do not observe any moral licensing but rather consistent behavior among participants with strong environmental attitudes. Finally, we find evidence for moral cleansing, which reduces the magnitude of the rebound effect. |
| Keywords: | Rebound effect, economic compensation, moral compensation, moral licensing effect, moral cleansing effect, online experiment |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpceem:hal-04071161&r=ene |
| By: | Banning, Maximilian; Großmann, Anett; Heinisch, Katja; Hohmann, Frank; Lutz, Christian; Schult, Christoph |
| Abstract: | In recent years, the impacts of climate change become increasingly evident, both in magnitude and frequency. The design and implementation of adequate climate adaptation policies play an important role in the macroeconomic policy discourse to assess the impact of climate change on regional and sectoral economic growth. We propose different modelling approaches to quantify the socio-economic impacts of climate change and design specific adaptations in three emerging market economies (Kazakhstan, Georgia and Vietnam) which belong to the areas that are heavily exposed to climate change. A Dynamic General Equilibrium (DGE) model has been used for Vietnam and economy-energy-emission (E3) models for the other two countries. Our modelling results show how different climate hazards impact the economy up to the year 2050. Adaptation measures in particular in the agricultural sector have positive implications for the gross domestic product (GDP). However, some adaptation measures can even increase greenhouse gas emissions. In addition, the focus on GDP as the main indicator to evaluate policy measures can produce welfare-reducing policy decisions. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhstu:22023&r=ene |
| By: | Goeschl, Timo; Soldà, Alice |
| Abstract: | Pledges feature in international climate cooperation since the 2015 Paris Agreement. We explore how differences in pledgers' trustworthiness affect outcomes in a social dilemma that parallels climate change. In an online experiment, two participants interact with a randomly matched third player in a repeat maintenance game with a pledge stage. Treatments vary whether participants are matched with a player that is more or less trustworthy as revealed by behavior in a promise-keeping game; and whether they observe that trustworthiness. We find that participants knowingly matched with more trustworthy players cooperate more than participants matched with less trustworthy players (knowingly or unknowingly), but also more than participants unknowingly matched with more trustworthy players. In contrast, participants knowingly matched with less trustworthy players do not cooperate less than participants who are unknowingly so. Our findings suggest that the use of pledges, as per the Paris Agreement, can leverage the power of trustworthiness to enhance cooperation. |
| Keywords: | social dilemmas; pre-play communication; pledges; cooperation; credibility; group formation |
| Date: | 2023–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:awi:wpaper:0728&r=ene |
| By: | Clement Brenot (Center for International Development at Harvard University); Douglas Barrios (Center for International Development at Harvard University); Eric S. M. Protzer (Center for Global Development); Nikita Taniparti (Center for International Development at Harvard University); Ricardo Hausmann (Center for International Development at Harvard University); Sophia Henn (Center for International Development at Harvard University) |
| Abstract: | Since the end of the 1990s, Kazakhstan has relied on oil and gas as the main drivers of economic growth. While this has led to rapid development of the country, especially during years of high oil prices, it has also subjected the economy to more severe downturns during oil shocks, bouts of currency overvaluation, and procyclicality in growth and public spending. Stronger economic diversification has the potential to drive a new era of sustainable growth by supporting new sources of value added and export revenue, creating new and better jobs, and making the economy more resistant to fluctuations in oil dynamics. However, repeated efforts to stimulate alternative, non-oil engines of growth have so far been inconclusive. This report introduces a new framework to identify opportunities for economic diversification in Kazakhstan. This framework attempts to improve upon previous methods, notably by building country and region-specific challenges to the development of the non-oil economy directly into the framework to identify feasible and attractive opportunities. These challenges are presented in detail in the Growth Diagnostic of Kazakhstan and are summarized along three high-level constraints: (i) an uneven economic playing field dominated by government-related public and private-entities; (ii) difficulties in acquiring productive capabilities, agglomerating them locally, and accessing export markets; and (iii) ongoing macroeconomic factors lowering external competitiveness lower and making the economy less stable. Our approach applies the economic complexity paradigm to identify what specific products and industries are most feasible for diversification, based on the existing productive capabilities demonstrated in the economy. We examine Kazakhstan's economic complexity at the national but also subnational levels, highlighting the heterogeneity of export baskets across regions that makes an analysis of opportunities at the subnational level essential. |
| Keywords: | Economic Complexity, Kazakhstan |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:cid:wpfacu:426&r=ene |
| By: | Chen Fengxian; Lv Xiaoyao |
| Abstract: | Based on the panel data of 283 prefecture-level cities in China from 2006 to 2019, this paper measures the extent and mechanism of the impact of RMB real effective exchange rate fluctuations on carbon emission intensity. The results show that: (1) For every 1% appreciation of the real effective exchange rate of RMB, the carbon emission intensity decreases by an average of 0.463 tons/10000 yuan; (2) The "carbon emission reduction effect" of RMB real effective exchange rate appreciation is more obvious in the eastern regions, coastal areas, regions with high urbanization levels, and areas with open information; (3) The appreciation of RMB real effective exchange rate can reduce carbon dioxide emission intensity by improving regional R&D and innovation ability, restraining foreign trade and foreign investment, promoting industrial structure optimization and upgrading, and improving income inequality. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2305.01558&r=ene |
| By: | Christopher J. Waller |
| Date: | 2023–02–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgsq:95831&r=ene |
| By: | Zehui, Zhao |
| Abstract: | This paper provides a comprehensive review of the literature on pro-environmental behavior and actions, highlighting key theories, empirical evidence, and practical implications for both sociology and economics. We begin by outlining the foundations of pro-environmental behavior research, drawing from the Theory of Planned Behavior (Ajzen, 1991), the Value-Belief-Norm Theory (Stern, Dietz, & Guagnano, 1995), and the Social Identity Theory (Tajfel & Turner, 1986) as primary theoretical frameworks. We then discuss the role of individual, social, and contextual factors in shaping pro-environmental behaviors, focusing on the importance of personal values (Schwartz, 1992), environmental concern (Dunlap & Van Liere, 1978), social norms (Cialdini, Reno, & Kallgren, 1990), and self-efficacy (Bandura, 1977). Next, we explore the role of economic incentives in promoting pro-environmental actions, highlighting the effectiveness of market-based instruments, such as carbon pricing (Stavins, 1998) and environmental subsidies (Goulder & Parry, 2008), as well as non-market approaches, like nudges (Thaler & Sunstein, 2008) and informational campaigns (McKenzie-Mohr, 2011). We emphasize the importance of interdisciplinary approaches in understanding and promoting pro-environmental behavior, including the integration of behavioral economics (Shogren & Taylor, 2008) and social psychology (Gifford & Nilsson, 2014) within the broader field of environmental studies. In conclusion, we highlight the most promising avenues for future research, such as the role of digital technologies in fostering environmental engagement (Milkoreit et al., 2018), the impact of climate change communication on behavior change (Moser, 2010), and the potential for leveraging social networks and community-based initiatives to promote sustainable lifestyles (Burchell, Rettie, & Patel, 2013). By synthesizing the extensive body of literature on pro-environmental behavior and actions, this paper aims to guide both researchers and practitioners in developing more effective strategies to foster sustainable societies. |
| Date: | 2023–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:cajup&r=ene |