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on Energy Economics |
| By: | Dai, Ziyi; Rodgers, Michael O; Guensler, Randall |
| Abstract: | Electric Vehicles (EVs) significantly reduce energy consumption and emissions from on-road operations and help create more sustainable transportation environment by reducing emissions from the entire well-to wheel energy cycle. Differences between hybrid electric vehicle (HEV), plug-in hybrid electric vehicle (PHEV), and battery electric vehicles (BEV) users is an important element in understanding potential impacts on travel demand and vehicle adoption, the fact that these vehicles may be adopted into households that undertake very different vehicle activities and energy usage patterns has not been a primary focus in the literature. This study differentiates between HEV, PHEV, and BEV users across three factors: owner household socio-demographic attributes, household daily travel patterns, and household energy usage profiles. The analyses examine factors that appear to influence users’ preferences towards specific EV types and how the selection of different EV types potentially relates to household socio demographics and daily travel patterns. The 2019 Puget Sound Regional Council travel survey data set serves as the main analytical dataset. Influential factors identified as significant through statistical approaches are employed as variables for developing a two-phase choice model for determining potential EV-purchasing households and their choice of specific EV type. As EVs continue to capture increasing market share over time, these research findings and the resulting vehicle type choice model are expected to significantly improve future travel demand model development, allowing activity-based travel demand models to assign specific vehicles to specific households and then to individual trips in planning scenario analysis. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, hybrid electric vehicles (HEVs), battery electric vehicles (BEVs), data mining and statistical learning, EV purchase and use decisions, household demographics, travel patterns and household energy usage, household travel surveys |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt5w91q6bc&r=ene |
| By: | Ian W.H. Parry; Danielle N Minnett; Karlygash Zhunussova |
| Abstract: | This paper discusses potential elements of a comprehensive strategy for making headway on Türkiye’s net zero emissions pedge for 2053. These elements include: (i) aligning 2030 emissions commitments with long term neutrality; (ii) implementing a carbon price rising to an ilustrative $75 per tonne by 2030; (iii) enhancing acceptability through using carbon pricing revenues efficiently and equitably and including competitveness measures; (iv) introducing various feebate schemes (the fiscal analogue of regulations) to reinforce mitigation incentives in the power, industry, transport, building, forestry, and agricultural sectors. According to modelling results a phased revenue-neutral $75 carbon price reduces CO2 emisisons 21 percent below baseline levels in 2030, raises revenues of 1.7 percent of GDP, avoids 11, 000 air pollution deaths over the decade, while imposing an average burden on households of 3 percent of their consumption (before revenue-recycling). With revenues used for targeted transfers and labor tax reductions the overall policy is pro-poor and pro-equity (average household is better off by 0.4 percent). |
| Keywords: | Climate change; Türkiye climate mitigation; carbon pricing; carbon tax; emissions trading system; feebate; power; industry; buildings; transportation; agriculture; forestry. |
| Date: | 2023–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/108&r=ene |
| By: | Urban Sila; Erik Frohm |
| Abstract: | The Czech economy is very carbon-intensive and has among the highest greenhouse gas emissions per unit of GDP in the OECD. Getting on the path towards net zero will require rapid emission reductions over the coming decades. Coal still makes up close to one third of the energy supply and the government has pledged to phase it out by 2033, which will require a swift expansion in the use of renewable energy sources as well as increased energy efficiency. This can be achieved by adopting a comprehensive policy package that includes widely applied carbon pricing, incentives to raise energy efficiency, spending on renewable energy and cutting red tape hindering green investments. Compensating policies and adjustment support will be essential to mitigate the socio-economic impacts of climate policies and to increase public support. Active labour market policies including higher spending on re-training for the unemployed is key to facilitate the green transition. |
| Keywords: | Climate policy, green investment, labour reallocation, redistribution |
| JEL: | Q43 Q48 Q52 Q55 R11 |
| Date: | 2023–05–11 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1754-en&r=ene |
| By: | Ben Conigrave |
| Abstract: | Canada has an ambitious plan to reduce the economy’s net emissions to zero by 2050. This will require a step change in mitigation action, with deep energy savings and near economy-wide replacement of fossil fuels with clean energy. Achieving this while minimising negative impacts on activity and living standards will be challenging. Canada is already using a range of policy instruments to propel its green transition – including carbon pricing, regulations, investment incentives, and public procurement of green technology. This Paper explores reforms that could make climate policies work better together to lock in both deep emissions reductions and strong economic growth. As with important efforts to prepare communities for the impacts of climate change, Canada’s provinces and territories will play a key role in the country’s green transition. |
| Keywords: | Canada, carbon pricing, climate change, climate policy, energy, green investment, green transition, net zero |
| JEL: | H23 H31 H32 Q52 Q58 |
| Date: | 2023–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1760-en&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: | Given that the development of renewable energy is regarded as a sustainable alternative to the realization of environmental quality, it is not surprising that the discussion of the sustainability of the world’s energy sources continues to expand. While renewable energy has a negligible impact on environmental degradation, developing regions like sub-Saharan Africa (SSA) is restricted by the capital-intensive investment requirements of the burgeoning renewable energy market. To explore the significance of available funding sources on renewable energy development in the region, this study investigates the influence of public debt on renewable energy consumption (REC) in a panel of 29 SSA countries, in full and sub-regional categorizations. A combination of the instrumental variable generalized method of moment (IV-GMM) approach and the two-stage least squares estimator was applied to achieve the goal of the study. Overall, our findings indicate that public debt, carbon emission, financial development, and economic growth exert a negative and significant linkage with renewable energy, while urbanization has a positive and significant influence. Aware of the study findings, appropriate policy prescriptions are proposed to improve the debt-financed funding for the development of the renewable energy sector in SSA. |
| Keywords: | Public Debt, Renewable Energy, Financial Development, Economic Growth, Carbon Emission |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/031&r=ene |
| By: | John Bistline; Neil Mehrotra; Catherine Wolfram |
| Abstract: | The Inflation Reduction Act (IRA) represents the largest federal response to climate change to date. We highlight the key climate provisions and assess the Act's potential economic impacts. Substantially higher investments in clean energy and electric vehicles imply that fiscal costs may be larger than projected. However, even at the high end, IRA provisions remain cost-effective. IRA has large impacts on power sector investments and electricity prices, lowering retail electricity rates and resulting in negative prices in some wholesale markets. We find small quantitative macroeconomic effects including a small decline in headline inflation, but macroeconomic conditions–particularly higher interest rates and materials costs–may have substantial negative effects on clean energy investment. We show that the subsidy approach in IRA has expansionary supply-side effects relative to a carbon tax but, in a representative-agent dynamic model, is preferable to a carbon tax only in the presence of a strong learning-by-doing externality. We also discuss the economics of the industrial policy aspects of the act as well as the distributional impacts and the possible incidence of the different tax credits in IRA. |
| JEL: | E20 L94 Q54 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31267&r=ene |
| By: | Timo Leidecker; Tim Bulman; Ilai Levin; Hélène Blake |
| Abstract: | A changing climate is threatening livelihoods and economic activity in Greece and the world. Transitioning to a green economy – mitigating the causes of climate change and adapting to its effects, while sustaining activity and improving well-being – is among the greatest policy challenges of the coming decades. In Greece, legacies of high emission intensity, limited fiscal space and scarce private financing amplify the challenge. Greening Greece’s energy system is at the core of this transition. This entails swiftly developing its large potential for renewable energies and adapting energy consuming sectors. A well-chosen mix of policies – including carbon pricing, public infrastructure investments, and gradually tightening regulations on minimum energy efficiency standards, while providing financial support and protecting vulnerable households – would minimise the cost of this transition. Developing insurance coverage can better protect households and firms from damages resulting from a warming climate, while limiting fiscal exposure. Engaging all stakeholders and supporting those affected by the transition will help build the consensus for implementing these policies into the long-term. |
| Keywords: | climate change adaptation, Climate policies, climate risk insurance, energy policies, green investment |
| JEL: | G22 H23 H31 H32 H40 H84 Q48 Q54 Q58 |
| Date: | 2023–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1757-en&r=ene |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | December 14th, 2022, Viêt Nam with G7 countries plus Denmark and Norway issued a political declaration to establish a Just Energy Transition Partnership. This nonbinding agreement aims to mobilize at least 15.5-billion-USD over the next 3 to 5 years, half as private finance and half as public sector finance. To be prepared by November 2023, the Resource Mobilization Plan (RMP) should support Vietnam's green transition, including these quantified objectives: peaking electricity sector emissions at 170-MtCO2e in 2030; peaking the coal-fired power generation capacity at 30.2-GW; producing 47% of electricity from renewable sources in 2030. This report aims to establish a common understanding to ease the next step: the RMP negotiation. The story is about a group of rich countries seeking to help a middle-income country switch to renewable energy. It starts with a reminder of Vietnam's energy transition context, which has shown impressive gains in the last four years. It then describes the JETP mechanism as a country platform, reviewing the South Africa pathfinder to introduce the Vietnam case, before examining how JETP fit in the international 3nance and climate diplomacy context. Next, it analyzes the two sides of the deal: the pledge to increase the public and private financial Bows into Vietnam's energy sector and the promise to boost Vietnam's GHG emissions reductions. Afer discussing Justice, Technology Transfer, and Finance, the report concludes with a summary of the vision implicit in the JETP political declaration. A comprehensive bibliography on Vietnam's JETP, the verbatim JETP Political Declaration, excerpts from Vietnam's COP26 implementation plan, and our interview protocol including a detailed vision for the JETP implementation are annexed. |
| Keywords: | JETP, Vietnam, Energy transition, Development, Cooperation, Climate Finance |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04094268&r=ene |
| By: | Matías Pacce (Banco de España); Isabel Sánchez (Banco de España); Marta Suárez-Varela (Banco de España) |
| Abstract: | Between December 2020 and June 2021, wholesale electricity market prices almost doubled in Spain. According to our estimates, a substantial portion of the observed increase – around 20% – would be due to the rise in CO2 prices in the European ETS, which directly impacts the cost of generating electricity through fossil fuel technologies. Nevertheless, most of the increase – approximately half – would be attributable to the rise in natural gas prices, one of the inputs in combined cycle plants. Developments in wholesale electricity prices in other European markets have been similar to those in Spain. However, there are substantial differences regarding the pass-through to retail prices. In particular, the increase in the wholesale price of electricity would account for around one-third of the rise in the Harmonised Index of Consumer Prices (HICP) in Spain between December 2020 and June 2021, while its contribution to overall inflation in the main economies of the euro area has been significantly lower. Disparities in retail pricing schemes could be behind the observed differences. |
| Keywords: | inflation, electricity market, European Emissions Trading System (EU ETS), pass-through |
| JEL: | E31 Q41 Q43 Q52 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:2120e&r=ene |
| By: | Jakub Sokołowski; Piotr Lewandowski; Jan Frankowski |
| Abstract: | Increasing climate policy ambitions create tensions in societies with low trust and social divisions, as shown by the Yellow Vests movement that successfully opposed a carbon tax in France. We study preferences for policies to achieve energy security and climate change mitigation goals in the context of the energy crisis caused by the Russian invasion of Ukraine. We conducted a discrete choice experiment on a representative sample of 10, 000 people in Poland, a country heavily dependent on fossil fuels. Using a willingness-to-pay approach, we find a strong aversion to a carbon tax that is only moderately alleviated by redistribution policies. Income and age matter for preferences regarding climate and energy. People with low incomes (bottom quartile) value achieving climate change (15%) and energy security (10%) goals less than the general population (17% and 14% willingness to pay, respectively). Younger people (aged 18-34) are willing to sacrifice more income to mitigate climate change than people aged 55 or more (28% vs. 12%) but are less willing to forego income (11% vs. 16%) to reduce fuel imports from Russia. Consequently, we quantify the heterogeneity of preferences regarding redistribution measures and evaluate their efficiency, providing an example of using discrete choice experiments to mitigate the risks of social tensions due to introducing a carbon tax. |
| Keywords: | carbon tax, redistribution, climate change, discrete choice experiment, willingness to pay |
| JEL: | H23 D74 Q41 Q54 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:wpaper:wp032023&r=ene |
| By: | Grégoire Garsous; Mark Mateo; Jonas Teusch; Konstantinos Theodoropoulos; Astrid Tricaud; Kurt van Dender |
| Abstract: | Building on an approach pioneered in the OECD’s Taxing Energy Use for Sustainable Development report, this paper develops a methodology to estimate effective carbon rates net of pre-tax fossil fuel support: the Net Effective Carbon Rates (Net ECR). This exercise is made possible by combining the two OECD databases: the Taxing Energy Use and Effective Carbon Rates database (the backbone of the newly established OECD series on Carbon Pricing and Energy Taxation) and the Inventory of Support Measures for Fossil Fuels. The paper then explores potential use cases of this new indicator. In particular, it explains how the Net ECR can be used to calculate fossil fuel support (FFS) against external carbon pricing benchmarks and why such an approach facilitates comparisons of FFS across countries and over time. The paper’s conclusions include avenues for future research. |
| JEL: | H23 Q41 Q54 Q48 |
| Date: | 2023–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ctpaaa:61-en&r=ene |
| By: | Jakub Soko³owski; Jan Frankowski |
| Abstract: | Climate policy is crucial for preventing the devastating effects of natural disasters like droughts, floods, and heat waves. It also plays a vital role in reducing Poland's dependence on imported coal, gas, and oil; addressing energy security concerns in the wake of the crisis caused by Russia's invasion of Ukraine. Environmental taxes are a highly effective tool for addressing climate risks. However, they can be controversial instruments, as their implementation may often lead to higher energy prices and social tensions. To mitigate these risks, it is important to implement fair and participatory climate policies that consider social preferences. A key aspect of ensuring the fairness of environmental taxes lies in the effective redistribution of their revenues. Preference research and citizens’ panels can help identify differences between varying social groups, allowing policymakers to better address citizens’ concerns and expectations. By adopting a climate policy based on these principles, Poland can significantly reduce social conflicts and minimise the risk of mass protests akin to the Yellow Vest movement sweeping across France. |
| Keywords: | carbon tax, redistribution, climate change, discrete choice experiment, willingness to pay |
| JEL: | D74 H23 Q41 Q54 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:ibt:ppaper:pp012023&r=ene |
| By: | Jayan, Vishnu |
| Abstract: | Due to climate change, all countries in the world are trying to change energy production from fossil fuel to renewable energy resources. Solar is the most acceptable energy alternative because of the cheap cost of Solar Photovoltaic cells that convert sunlight into electricity and the availability of sunlight which is the energy source. India also brings some policy interventions to change the energy production paradigm from fossil fuels to renewable fuels. The study briefly discusses solar parks, an idea of a centralized solar energy production system to generate more energy from renewable, echo-friendly ways to fight against climate change, and its distribution and progress using available data and tools like GIS. |
| Date: | 2023–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:4nurv&r=ene |
| By: | Kim , Gyu-Pan (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | Japan is mobilizing all its policy capabilities for energy transition from fossil fuels to renewable energy and hydrogen energy from the perspective of realizing carbon neutrality by 2050. Among them, the overseas development and return of hydrogen energy to Japan and the domestic green hydrogen development are making great progress since the announcement of the basic hydrogen strategy in December 2017. Japan promotes the green growth strategy (December 2020) as a national strategy to achieve the 2030 GHG reduction target of 46% (compared to 2013) (NDC) and to realize ‘carbon neutrality by 2050’. Japan's green growth strategy sets 14 areas as key development industries, including offshore wind power, hydrogen, nuclear power, automobiles and batteries, semiconductors, and information & technology. It also presents action plans in the key 14 areas such as R&D, demonstration projects, introduction expansion, and self-reliance/commercialization according to the growth stage of each area. In this WEB, we would like to explore which part of Japan's energy transition policy and green growth strategy the Korean government will refer to in order to achieve the task of realizing carbon neutrality by 2050, and cooperate with Japanese government. |
| Keywords: | Carbon; Neutrality.; Green; Growth; Strategy |
| Date: | 2023–03–03 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2023_008&r=ene |
| By: | Dönitz, Ewa; Breitschopf, Barbara; Burghard, Uta |
| Abstract: | The paper was created in the context of the project Akzept and focuses on the description of the scenario process and its results in the form of three scenarios for a desirable energy transition. The project aimed at analysing the influence of participation, communication, and selected socioeconomic criteria on the acceptance of the energy transition. The impact of self-supply of electricity and membership in a citizen energy initiative on the acceptance of the energy transition by those who did not participate in this way was also studied. The team conducted two scenario workshops to describe future designs of the energy transition as well as the needs and preferences of society in the form of various future scenarios. One workshop included persons who participated in the form of self-supply or membership in energy initiatives, while the other workshop aimed at socalled non-participants with a general interest in the topic of energy. The workshops comprised a combination of different activities, brainstorming, and discussions in small groups, and contributed to ensure engagement of participants with very different backgrounds throughout the scenario development. The scope for the scenario process was formed by important topics related to the energy transition that can be divided into three groups: individual engagement and decisions, energy transition in the broader context, and involvement as well as decisions in general. The energy transition can be achieved along three different paths, so-called scenarios: bottom-up, acceleration, and passive. The bottom-up scenario emphasises decentralised energy production with transparency and fairness, allowing for genuine participation and co-determination of citizens. It involves many small plants for energy production and allows for self-consumption, with low barriers for citizens to participate. The acceleration scenario prioritises rapid implementation and focuses on becoming independent from energy imports. It places a strong emphasis on regulations, and companies that emit high levels of CO2 have to pay a high price for their emissions. The passive scenario is characterised by a low level of interest from citizens, who display weak acceptance towards the energy transition. Information and transparency are not important, and the government is responsible for deciding on how to achieve the energy transition. The transition occurs at low cost, and energy utilities provide renewable energy at low prices. |
| Keywords: | foresight, scenarios, participation, energy transition, acceptance |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s032023&r=ene |
| By: | Will, Christian; Zimmermann, Florian; Ensslen, Axel; Fraunholz, Christoph; Jochem, Patrick; Keles, Dogan |
| Abstract: | Growing numbers of plug-in electric vehicles in Europe will have an increasing impact on the electricity system. Using the agent-based simulation model PowerACE for ten electricity markets in Central Europe, we analyze how different charging strategies impact price levels and production- as well as consumption-based carbon emissions in France and Germany. The applied smart charging strategies consider spot market prices and/or real-time production from renewable energy sources. While total European carbon emissions do not change significantly in response to the charging strategy due to the comparatively small energy consumption of the electric vehicle fleet, our results show that all smart charging strategies reduce price levels on the spot market and lower total curtailment of renewables. Here, charging processes optimized according to hourly prices have the strongest effect. Furthermore, smart charging strategies reduce electricity purchasing costs for aggregators by about 10% compared to uncontrolled charging. In addition, the strategies allow aggregators to communicate near-zero allocated emissions for charging vehicles. An aggregator's charging strategy expanding classic electricity cost minimization by limiting total national PEV demand to 10% of available electricity production from renewable energy sources leads to the most favorable results in both metrics, purchasing costs and allocated emissions. Finally, aggregators and plug-in electric vehicle owners would benefit from the availability of national, real-time Guarantees of Origin and the respective scarcity signals for renewable production. |
| Keywords: | Energy system analysis, Electric mobility, Smart charging, Electricity markets, CO2 emissions, Renewable energies |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:69&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: | Given that the development of renewable energy is regarded as a sustainable alternative to the realization of environmental quality, it is not surprising that the discussion of the sustainability of the world’s energy sources continues to expand. While renewable energy has a negligible impact on environmental degradation, developing regions like sub-Saharan Africa (SSA) is restricted by the capital-intensive investment requirements of the burgeoning renewable energy market. To explore the significance of available funding sources on renewable energy development in the region, this study investigates the influence of public debt on renewable energy consumption (REC) in a panel of 29 SSA countries, in full and sub-regional categorizations. A combination of the instrumental variable generalized method of moment (IV-GMM) approach and the two-stage least squares estimator was applied to achieve the goal of the study. Overall, our findings indicate that public debt, carbon emission, financial development, and economic growth exert a negative and significant linkage with renewable energy, while urbanization has a positive and significant influence. Aware of the study findings, appropriate policy prescriptions are proposed to improve the debt-financed funding for the development of the renewable energy sector in SSA. |
| Keywords: | Public Debt, Renewable Energy, Financial Development, Economic Growth, Carbon Emission |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/031&r=ene |
| By: | Simon Chazel; Sophie Bernard; Hassan Benchekroun |
| Abstract: | What are the implications of primary mineral constraints for the energy transition? Low-carbon energy production uses green capital, which requires primary minerals. We build on the seminal framework for the transition from a dirty to a clean energy in Golosov et al. (2014) to incorporate the role played by primary minerals and their potential recycling. We characterize the optimal paths of the energy transition under various mineral constraint scenarios. Mineral constraints limit the development of green energy in the long run: low-carbon energy production eventually reaches a plateau. We run our simulations using copper as the limiting mineral and we allow for its full recycling. Even in the limiting case of a 100% recycling rate, after five to six decades green energy production is 50% lower than in the scenario with unlimited primary copper, and after 30 decades, GDP is 3–8% lower. In extension scenarios, we confirm that a longer life duration of green capital delays copper extraction and the green energy peak, whereas reduced recycling caps moves the peak in green energy production forward. Quelles sont les implications des contraintes liées aux minéraux primaires pour la transition énergétique ? La production d'énergie à faible teneur en carbone fait appel au capital vert, qui nécessite des minéraux primaires. Nous nous appuyons sur le cadre fondateur de la transition d'une énergie sale à une énergie propre de Golosov et al. (2014) pour intégrer le rôle joué par les minéraux primaires et leur recyclage potentiel. Nous caractérisons les voies optimales de la transition énergétique dans divers scénarios de contraintes minérales. Les contraintes minérales limitent le développement des énergies vertes à long terme : la production d'énergie à faible teneur en carbone finit par atteindre un plateau. Nous effectuons nos simulations en utilisant le cuivre comme minéral limitant et nous permettons son recyclage complet. Même dans le cas limite d'un taux de recyclage de 100 %, après cinq à six décennies, la production d'énergie verte est inférieure de 50 % à celle du scénario où le cuivre primaire est illimité, et après 30 décennies, le PIB est inférieur de 3 à 8 %. Dans les scénarios d'extension, nous confirmons qu'une durée de vie plus longue du capital vert retarde l'extraction du cuivre et le pic de production d'énergie verte, tandis qu'une réduction des plafonds de recyclage avance le pic de production d'énergie verte. |
| Keywords: | Energy Transition, Green Capital, Recycling, Circular Economy, Mineral Constraint, Dynamic General-Equilibrium Model, Transition énergétique, capital vert, recyclage, économie circulaire, contrainte minérale, modèle d'équilibre général dynamique |
| Date: | 2023–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirwor:2023s-09&r=ene |
| By: | Fatih Karanfil; Luc Desire Omgba (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The energy transition toward decarbonization is expected to impact producers of fossil fuels. However, oil-exporting countries are currently key players in the modern economy. Thus, the energy transition will not be successful if state revenues in these countries are not stably maintained. These countries can protect themselves against revenue volatility and mitigate carbon risk by diversifying their economies. However, export diversification appears to be particularly challenging for many oil-producing countries. |
| Keywords: | Adaptation, Circular Carbon Economy, Climate change, Competitiveness |
| Date: | 2023–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp21&r=ene |
| By: | Jana, Sebak Kumar; Lise, Wietze |
| Abstract: | For becoming fastest-growing large economy in the world, India has set a target growth rate of 9%, reaching an economy of $5 trillion by 2024-25. It is an immense challenge to meet both the growth target and keeping the CO2 emissions under control. The present paper aims at discovering the determinants for explaining CO2 emissions in India by carrying out a complete decomposition analysis, where the residuals are fully distributed to the determinants, for the country during the period 1990–2018. The analysis reveals that the biggest contributor to the rise in CO2 emissions in India is the expansion of the economy (scale effect). The intensity of CO2 and the change in composition of the economy, which nearly move in tandem, also contribute to the rise in CO2 emissions, although more slowly. A declining energy intensity of Indian economy is responsible for a considerable reduction in CO2 emissions. As a typical result for an upcoming economy, this paper did not find evidence for an environmental Kuznets curve. This implies that continued economic growth will lead to a continued increases in CO2 emissions. |
| Keywords: | Decomposition analysis; India; Energy; CO2 emissions; Economic growth; Environmental Kuznets curve |
| JEL: | Q43 |
| Date: | 2023–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117245&r=ene |
| By: | Cazzola, Pierpaolo; Santos Alfageme, Maria |
| Keywords: | Engineering, Social and Behavioral Sciences, zero emission vehicles, policy, greenhouse gas emissions, low and middle income countries |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt6766234x&r=ene |
| By: | Mr. Rudolfs Bems; Lukas Boehnert; Mr. Andrea Pescatori; Martin Stuermer |
| Abstract: | Limiting climate change requires a 80 percent reduction in fossil fuel extraction until 2050. What are the macroeconomic consequences for fossil fuel producing countries? We identify 35 episodes of persistent, exogenous declines in extraction based on a new data-set for 13 minerals (oil, gas, coal, metals) and 122 countries since 1950. We use local projections to estimate effects on real output as well as the external and the domestic sectors. Declines in extractive activity lead to persistent negative effects on real GDP and the trade balance. The real exchange rate depreciates but not enough to offset the decline in net exports. Effects on low-income countries are significantly larger than on high-income countries. Results suggest that legacy effects of bad institutions could prevent countries from benefiting from lower resource extraction. |
| Keywords: | Resource-rich countries; energy transition; fossil fuels; macroeconomics; development; climate policies |
| Date: | 2023–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/097&r=ene |
| By: | Frondel, Manuel; Kaestner, Kathrin; Sommer, Stephan; Vance, Colin |
| Abstract: | Recent research suggests that households increase their electricity consumption in the aftermath of installing photovoltaic (PV) panels, a behavioral change commonly referred to as the solar rebound. Drawing on panel data originating from the German Residential Energy Consumption Survey (GRECS), we employ panel estimation methods and the dynamic system estimator developed by Blundell and Bond (1998) to investigate the existence of a solar rebound effect, thereby accounting for simultaneity and endogeneity issues relating to PV installation and the electricity price. Our empirical results suggest that PV panel adoption of households does not change the amount of electricity taken from the grid. As we derive theoretically, this outcome implies a solar rebound that is bounded from above by about 50%, while back-of-the-envelope calculations provide us with a lower bound of 12% and an average solar rebound of 35%. |
| Keywords: | Feed-in tariffs, GMM system estimator, German Residential Energy Consumption Survey (GRECS) |
| JEL: | C23 H10 Q41 |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:954&r=ene |
| By: | Fakhri Hasanov; Muhammad Javid; Jeyhun Mikayilov; Rami Shabaneh; Abdulelah Darandary; Ryan Alyamani (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Macroeconomic and sectoral assessment of the energy price reform (EPR) can provide policymakers with useful insights regarding price deregulation options. A key feature of this research that differentiates it from many other studies is its modeling framework. The framework first estimates how theoretically articulated determinants (e.g., income and price) historically shaped natural gas demand. Then, this estimated equation is integrated into a macroeconometric model called KGEMM to simulate the impact of natural gas prices on key macroeconomic and sectoral indicators that are of policy interest for the coming years. |
| Keywords: | Agent based modeling, Analytics, Applied research, Autometrics |
| Date: | 2023–10–04 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp22&r=ene |
| By: | Juan Ignacio Iba\~nez; Alexander Freier |
| Abstract: | For more than a decade, Bitcoin has gained as much adoption as it has received criticism. Fundamentally, Bitcoin is under fire for the high carbon footprint that results from the energy-intensive proof-of-work (PoW) consensus algorithm. There is a trend however for Bitcoin mining to adopt a trajectory toward achieving carbon-negative status, notably due to the adoption of methane-based mining and mining-based flexible load response (FLR) to complement variable renewable energy (VRE) generation. Miners and electricity sellers may increase their profitability not only by taking advantage of excess energy, but also by selling green tokens to buyers interested in greening their portfolios. Nevertheless, a proper ''green Bitcoin'' accounting system requires a standard framework for the accreditation of sustainable bitcoin holdings. The proper way to build such a framework remains contested. In this paper, we survey the different sustainable Bitcoin accounting systems. Analyzing the various alternatives, we suggest a path forward. |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2305.01815&r=ene |
| By: | Muessel, Jarusch (Potsdam Institute for Climate Impact Research); Ruhnau, Oliver (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | The growing number of electric vehicles (EVs) will challenge the power system, but EVs may also have balancing effects via smart charging. Modeling EVs’ system-level impact while respecting computational constraints requires the aggregation of individual profiles. We show that studies typically rely on too few profiles to accurately model EVs’ system-level impact and that a naïve aggregation of individual profiles leads to an overestimation of the fleet’s flexibility potential. To overcome this, we introduce a scalable and accurate aggregation approach based on the idea to model deviations from an uncontrolled charging strategy as a virtual energy storage unit. We apply this to German mobility statistics and estimate an average flexibility potential of 93 GWh (6.2 kWh/EV), only 10% of the result of a naïve aggregation. We conclude that our approach allows for a more realistic representation of EVs in energy system models and may be applied to other flexible assets. |
| Keywords: | electric vehicles; demand-side flexibility; aggregation; representativity; After Diversity Maximum Demand; energy system modeling; virtual energy storage unit |
| JEL: | A12 C02 |
| Date: | 2022–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2022_017&r=ene |
| By: | Jacobsen, Mark; Sallee, James; Shapiro, Joseph; van Benthem, Arthur A. |
| Abstract: | What is a feasible and efficient policy to regulate air pollution from vehicles? A Pigouvian tax is technologically infeasible. Most countries instead rely on exhaust standards that limit air pollution emissions per mile for new vehicles. We assess the effectiveness and efficiency of these standards, which are the centerpiece of US Clean Air Act regulation of transportation, and counterfactual policies. We show that the air pollution emissions per mile of new US vehicles has fallen spectacularly, by over 99 percent, since standards began in 1967. Several research designs with a half century of data suggest that exhaust standards have caused most of this decline. Yet exhaust standards are not cost-effective in part because they fail to encourage scrap of older vehicles, which account for the majority of emissions. To study counterfactual policies, we develop an analytical and a quantitative model of the vehicle fleet. Analysis of these models suggests that tighter exhaust standards increase social welfare and that increasing registration fees on dirty vehicles yields even larger gains by accelerating scrap, though both reforms have complex effects on inequality. |
| Date: | 2023–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-18&r=ene |
| By: | Diego R. Känzig; Maximilian Konradt |
| Abstract: | This paper investigates the impact of carbon pricing on the economy, with a focus on European carbon taxes and the carbon market. Our analysis reveals three key findings. First, while both policies have successfully reduced emissions, the economic costs of the European carbon market are larger than for national carbon taxes. Second, we explore four factors that explain this difference: fiscal policy and revenue recycling, pass-through and sectoral coverage, spillovers and leakage, and monetary policy. Our findings suggest that all four factors play a significant role. Third, we document substantial regional heterogeneity in the impacts of the carbon market, which crucially depend on the share of freely allocated emission permits and the degree of market concentration in the power sector. |
| JEL: | E32 E62 H23 Q54 Q58 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31260&r=ene |
| By: | Marwil J. Davila-Fernandez; Serena Sordi |
| Abstract: | This paper extends the Marx-Keynes-Schumpeter model in Flaschel (2015) to study the social dimension of climate change. Agents are divided between those supporting and those opposing taxing Green House Gas (GHG) emissions. The composition of the population varies according to a continuous-time version of the discrete-choice approach. Conditional to the level of interaction between players, society chooses the respective tax rate. Higher taxes reduce capital accumulation but support the development of energy-saving production techniques. Output growth and employment rates will be higher or lower depending on which effect prevails. A certain level of economic activity generates GHG emissions and determines the employment rate, which, in turn, endogenously feedback on environmental sentiments. Lower emissions reinforce sustainable attitudes while falling employment increases households’ concerns with more “urgent” needs, decreasing support for taxation. Hence, the model is compatible with a positive relationship between environmental attitudes and energy efficiency but not a clear association with output. A sufficiently strong response of sentiments to emissions combined with partially autonomous pollution regulation may lead to the disappearance of the equilibrium in which most agents oppose taxation, controlling for multistability. By applying the existence part of the Hopf bifurcation theorem, we show that our 3-dimension system admits endogenous persistent and bounded fluctuations, representing the interaction between green attitudes and growth-cycle dynamics |
| Keywords: | Sustainable development; Heterogeneous agents; Hopf bifurcation. |
| JEL: | C63 O11 O44 Q57 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:890&r=ene |
| By: | Kosuke Aoki (University of Tokyo); Jouchi Nakajima (Hitotsubashi University); Masato Takahashi (Bank of Japan); Tomoyuki Yagi (Bank of Japan); Kotone Yamada (Bank of Japan) |
| Abstract: | Recently the efforts toward decarbonization are spreading both in Japan and abroad. In this paper, we examine the developments in Japan's energy intensity, a measure of energy efficiency, and their background at the aggregate and sectoral levels. The main results are as follows. Energy efficiency in Japan improved considerably between the 1970s and the 1980s, mainly due to the progress in energy-saving technical changes in the business sector. Although the pace of improvement decelerated on the whole from the 1990s to the first half of the 2000s, Japan's energy efficiency has returned to a moderate improving trend, particularly in the household sector, in recent years. Our estimate using a simple model of the household sector shows that the recent improvement in aggregate energy efficiency may reflect households' purchases and utilization of energy-saving goods produced by the business sector. Further efforts are expected to be made in each sector to achieve carbon neutrality. |
| Keywords: | Climate Change; Carbon Neutrality; Energy Efficiency; Technical Change |
| JEL: | E21 E22 H23 Q54 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojwps:wp23e10&r=ene |
| By: | Coenen, Günter; Lozej, Matija; Priftis, Romanos |
| Abstract: | We use scenario analysis to assess the macroeconomic effects of carbon transition policies aimed at mitigating climate change. To this end, we employ a version of the ECB’s New Area-Wide Model (NAWM) augmented with a framework of disaggregated energy production and use, which distinguishes between “dirty” and “clean” energy. Our central transition scenario is that of a permanent increase in carbon taxes, which are levied as a surcharge on the price of dirty energy. Our findings suggest that increasing euro area carbon taxes to an interim target level consistent with the transition to a net-zero economy entails a transitory rise in inflation and a lasting, albeit moderate decline in GDP. We show that the short and medium-term effects depend on the monetary policy reaction, on the path of the carbon tax increase and on its credibility, while expanding clean energy supply is key for containing the decline in GDP. Undesirable distributional effects can be addressed by redistributing the fiscal revenues from the carbon tax increase to low-income households. JEL Classification: C54, E52, E62, H23, Q43 |
| Keywords: | carbon taxation, climate change, DSGE model, euro area, monetary policy, fiscal policy |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232819&r=ene |
| By: | Hector H. Sandoval (BEBR/University of Florida); Pedro I. Hancevic (CIDE/Universidad Panamericana) |
| Abstract: | In this paper we provide empirical evidence of the energy-efficiency gap between home-owners and renters and quantify the magnitude of the split incentives problem in an emerging economy by studying Mexican households. Using micro-level data from the first National Survey on Energy Consumption in Private Homes (ENCEVI-2018) and a regression framework, we show that underinvestment problems occur in multiple categories of residential energy efficiency. Concretely, our results show that renters have significantly less insulation and energy-efficient equipment, that they tend to use some of their equipment more frequently, and that they pay higher utility bills than homeowners. In addition, renters are less aware of government programs that can reduce their energy expenditure and are also less likely to take advantage of them. Finally, a substantial reduction in carbon emissions could be achieved if renters were equally energy efficient as homeowners. |
| Keywords: | Split incentives, principal-agent problem, energy efficiency, Mexico |
| JEL: | D12 Q15 Q40 Q53 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:242&r=ene |
| By: | Emanuele Campiglio; Alessandro Spiganti; Anthony Wiskich |
| Abstract: | Access to finance is a major barrier to clean innovation. We incorporate heterogeneous and endogenous financing costs in a directed technical change model and identify optimal climate mitigation policies. The presence of a financing experience effect induces more ambitious policies in the short-term, both to shift innovation and production towards clean sectors and to reduce the financing cost differential across technologies, which further facilitates the transition. The optimal climate policy mix between carbon taxes and clean research subsidies depends on whether experience is gained through clean production or research. In our benchmark scenario, where clean financing costs decline as cumulative clean output increases, we find an optimal carbon price premium of 47% in 2025, relative to a case with no financing costs. |
| Keywords: | carbon tax, directed technological change, endogenous growth, financing experience effect, innovation policy, low-carbon transition, optimal climate policy, sustainable finance |
| JEL: | H23 O31 O44 Q55 Q58 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-25&r=ene |
| By: | Henrique S. Basso (Banco de España); Ourania Dimakou (URJC); Myroslav Pidkuyko (Banco de España) |
| Abstract: | The prominence of emission mitigation policies calls for an understanding of their potential distributional impact. To assess the distributional heterogeneity, we quantify and analyse the consumption emission intensity, defined as carbon emissions per unit of consumption, across households in Spain. With the exception of the poorest households, emission intensity decreases with income and peaks for households whose head is middle-aged (40 years old). Moreover, households whose main earner is less educated and male emit more per unit of expenditure. Thus, emission mitigation policies may disproportionately impact middle-aged households whose income is around €1, 000, and whose head is male and less educated. |
| Keywords: | carbon taxes, carbon caps, emission allowances, household expenditure, CO2 emission intensity |
| JEL: | E21 E31 D12 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:2309&r=ene |
| By: | Yannick Hemmerlé; Enes Sunel; Filippo Maria D’Arcangelo; Tobias Kruse; David Haugh; Álvaro Pina; Mauro Pisu; Cassandra Castle; Giuliana Sarcina |
| Abstract: | Governments rapidly provided large support to help households and firms face the 2021-22 energy price crisis. Drawing on the OECD Energy Support Measures Tracker and country case studies, this paper documents countries’ policy responses and draws lessons for enhancing countries’ preparedness to future energy price shocks. Support implemented or announced by countries so far has been largely untargeted and often fiscally costly. As such it might add to inflationary pressures and in many cases reduce incentives to save energy and transition away from fossil fuels. Reliance on imported energy, technical obstacles to implement a targeted approach and political economy constraints help explain the type of support countries provided. There is now a case for withdrawing broad-based energy support, given the recent moderation in energy prices and ongoing or planned minimum-wage and welfare-benefit increases to compensate for high inflation. Digitalisation would help improve the quality of support countries can provide to face a future energy or other crisis by speeding up payment delivery and facilitating a more targeted approach based on vulnerability factors beyond low income, such as the inability to renovate an energy-inefficient home. Ensuring that support measures maintain incentives for energy savings and encourage energy diversification, combined with investments to accelerate the green transition, is key to reducing vulnerability to energy price shocks. |
| Keywords: | Energy demand, Energy prices, Energy supply, Environment, Fiscal Policy, Government Budget, Government Expenditure, Social Assistance, Welfare programmes |
| JEL: | H31 H32 H53 I38 P18 Q41 Q43 Q48 H61 |
| Date: | 2023–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaab:32-en&r=ene |
| By: | Ajibade, Toyin B.; Ajibade, Ezekiel T.; Muhammad-Lawal, Abdulazeez; Oloyede, Waliyat O. |
| Abstract: | Energy shortage is a major concern in Nigeria. Albeit its abundance, fossil fuel is no viable solution considering varied pollution. Renewable energy technology like solar-powered-hubfor-homes is gaining prominence. The technology positions to address energy deficit in rural households but first, household decision makers’ question of whether such investment is worth its cost demands answers. We assessed impact of this technology on wellbeing of adopting rural farming households in Nigeria and explored the drivers of its diffusion. Designing a Quasi-experiment, we randomly assigned 73 subscribers into treatment group and 219 nonelectrified households into control group. Data were analysed using descriptive statistics, t-test, PSM, and probit regression. We found adoption increased wellbeing of adopters over nonadopters(p<0.05) confirming our hypothesis that access to stand-alone solar-powered energy by off-grid rural households can potentially improve adopter’s personal wellbeing. We found that household and remittance incomes, within-household school-aged children, payment flexibility, subsidy scheme, peer effect and pursuit of life’s ease increased the probability of the technology adoption whereas increase in age, proximity to town and fossil fuel access negatively influenced its adoption (p<0.05). We recommended government subsidy on the technology. Diffusion may be aided by peer effect hence the recommendation to influence key individuals to adopt. |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Resource /Energy Economics and Policy |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334560&r=ene |
| By: | Davide Bazzana (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Massimiliano Rizzati (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Emanuele Ciola (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Enrico Turco (Fondazione Eni Enrico Mattei and The Complexity Lab in Economics, Department of Economics and Finance, Catholic Univeristy of Milan); Sergio Vergalli (Author-Name: Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia) |
| Abstract: | This paper explores the potential impacts of climate change and mitigation policies on the Euro Area, considering the uncertainty and heterogeneity in both climate and economic systems. Using the MATRIX model, a multi-sector and multi-agent macroeconomic model, we simulate various climate scenarios by employing different carbon cycle models, damage functions, and marginal abatement curves found in the literature. We find that heterogeneous climate damages amplify both the magnitude and the volatility of GDP losses associated with global warming. By the end of the century, we estimate that assuming homogeneous shocks may underestimate the effects of climate change on aggregate output by up to one-third. Moreover, we find that the speed and feasibility of a low-carbon transition crucially depend on (i) the stringency of emission reduction targets, which determine the level of a carbon tax, and (ii) the rate of technological progress, which influences the shape of the abatement cost curve. |
| Keywords: | Energy Sector, Agent-Based Models, Macroeconomic Dynamics, Climate change, Climate Policy, Emission Abatement |
| JEL: | C63 Q52 Q58 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2023.09&r=ene |
| By: | Anwar Gasim; Lester C. Hunt; Jeyhun Mikayilov (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | To tackle the threat of climate change, countries worldwide have signed the Paris Agreement. This agreement aims to limit the global average temperature increase to below 2 degrees Celsius and potentially below 1.5 degrees Celsius above pre-industrial levels (UNFCCC 2015). Parties to the Paris Agreement are required to submit domestic climate plans detailing their mitigation measures, known as nationally determined contributions (NDCs). These plans detail countries’ ambitions and efforts to combat and respond to climate change. NDCs are communicated at five-year intervals, and each successive NDC must represent an increase in ambition over the previous one. |
| Keywords: | Belt and Road, Captial expenditure, Circular Carbon Economy, CO2 emissions |
| Date: | 2023–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp19&r=ene |
| By: | Hafele, Jakob; Kuhls, Sonia |
| Abstract: | While reducing industrial greenhouse gas (GHG) emissions is undoubtedly necessary to avoid an ecological disaster, political support for environmental regulation depends largely on its effectiveness and expected side-effects. A potential fallout often associated with environmental policies is a decline in economic competitiveness. Therefore, it is vital to understand whether there is a trade-off, implying that climate mitigation policies necessarily lead to competitiveness losses, or if a suitable policy design can achieve climate change mitigation without risking significant losses in competitiveness. This paper provides a systematic overview of the existing literature - including modelling studies and econometric analyses - regarding the association between GHG emissions reductions and competitiveness risks. To structure the literature, we develop a framework that allows us to cluster the reviewed papers by their theoretical and their empirical approach, rendering possible the analysis of differences between the resulting clusters. Scrutinising the findings of 80 papers, we determine that declines in competitiveness and industrial relocation to unregulated countries (carbon leakage) have so far not been relevant outcomes of existing environmental policies, neither on the firm nor on the country level. Nevertheless, they should not be neglected in the assessment of future policies, as modelling studies foresee small but significant levels of comparative disadvantages and carbon leakage. We discuss potential reasons for this discrepancy between study approaches. Overall, the empirical evidence suggests that carbon pricing regulation and economic competitiveness can be reconciled under specific circumstances, which must be provided by a coherent policy mix that takes climate change mitigation seriously while addressing possible negative side-effects. |
| Keywords: | Carbon Pricing, Comparative Advantage, Competitiveness, International Trade, Technological Innovation |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zoedps:9&r=ene |
| By: | Anthony Liu; Rubal Dua; Wei-Min Hu; Arthur Lin Ku (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Can voluntary carbon emission reduction pledges, such as the nationally determined contributions under the Paris Agreement, result in significant emission reductions? According to prominent experts such as Nordhaus (2015), Barrett (2005), and Weitzman (2019), free-riding is unavoidable in cooperative situations based on voluntary agreements. If their assessments are correct, each country’s nationally determined contribution is unreliable. Countries will strategically promise large cuts while making only minor emission reductions. |
| Keywords: | Adaptation, Circular Carbon Economy, Climate change, Competitiveness |
| Date: | 2023–11–04 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2022-dp11&r=ene |
| By: | Irene Monasterolo (EDHEC BUSINESS SCHOOL, EDHEC-RISK AND CLIMATE IMPACT INSTITUTE (ERCII)); María J. Nieto (Banco de España); Edo Schets (BLOOMBERG) |
| Abstract: | Climate mitigation scenarios are an essential tool for analyzing the macroeconomic and financial implications of climate change (physical risk), and how the transition to a low-carbon economy could unfold (transition risk). The Network for Greening the Financial System (NGFS) has co-developed a set of climate mitigation scenarios for climate financial risk assessment. Despite the important role that these scenarios play in climate stress tests, the understanding of their main characteristics and limitations is still poor. In this paper, we contribute to filling this gap by focusing on the following issues: comparison of the process-based Integrated Assessment Models (IAMs) used by the NGFS with alternative models; the role of Representative Concentration Pathways (RCPs) and Shared Socioeconomic Pathways (SSPs) in shaping the scenario narratives, and their shortcomings; the interpretation and sensitivities of carbon price pathways; and, comparison with other climate mitigation scenarios. We then draw lessons on how to increase the relevance of the NGFS scenarios. These include updating the SSP narratives; considering the potential trade-offs between different types of climate policies; assessing acute physical risks and their compounding; integrating physical risks within transition scenarios; and, taking into account the role of the financial sector and investors’ expectations. |
| Keywords: | NGFS scenarios, climate finance, climate transition risks, climate physical risks, integrated assessment models, carbon pricing, climate financial risk assessment |
| JEL: | Q40 Q50 Q54 Q55 Q58 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:2302&r=ene |
| By: | Saufillah, Zulfiyatus |
| Abstract: | Energy management is critical to achieving sustainable agriculture development and reducing environmental impacts. The strategies for energy management discussed in this essay, including energy efficiency measures, energy management systems, and green financing, can help drive green entrepreneurship growth in the agriculture sector. Implementing these strategies can help green entrepreneurs reduce energy consumption and costs, improve productivity, promote sustainable development, and create new growth opportunities. Therefore, policymakers, investors, and other stakeholders should work together to support the implementation of these strategies in the agriculture sector. |
| Date: | 2023–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:5qcwr&r=ene |
| By: | Singhal, Puja; Sommer, Stephan; Kaestner, Kathrin; Pahle, Michael |
| Abstract: | Rental housing where tenants are responsible for their own energy bills but landlords are responsible for energy retrofits may pose a particular challenge in achieving optimal rates of investments in energy efficiency. In this paper, we investigate the severity of this split-incentive problem in thermal efficiency investments in the German housing market, where the share of renters is among the highest in the European Union and the majority of rented apartments is owned by private individuals. Using data on energy performance scores from Germany's largest online housing market platform between 2019 and 2021, we find economically small differences in the energy efficiency levels between apartments that are offered for sale for own use compared to those that are rented out on the housing market. These findings suggest that there may not be a critical energy efficiency deficit due to the high share of renters in the multi apartment building sector. |
| Keywords: | Energy efficiency, split-incentives, housing market, owner-renter problem |
| JEL: | Q41 Q50 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:992&r=ene |
| By: | Anwar Gasim; Lester C. Hunt; Jeyhun Mikayilov (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Reducing methane (CH4) emissions is key to near-term efforts to limit global warming. CH4 is the second most abundant anthropogenic greenhouse gas (GHG) in the atmosphere after carbon dioxide (CO2). The production, transport, and consumption of fossil fuels, in addition to waste and agriculture, account for most anthropogenic CH4 emissions globally (IPCC 2018). Although CH4has only a 12-year lifetime in the atmosphere, it is 84 times more potent per ton than CO2 in a 20-year period and 28 times more potent in a 100-year period (IPCC 2018). The drastically stronger short-term potency of CH4 explains why its short-term impact on global warming is considerably greater than that of CO2. Therefore, meeting the goals of the Paris Agreement necessitates not only decarbonization but also significant CH4 emissions reductions, especially in the near term. |
| Keywords: | Belt and Road, Capital expenditure, Circular Carbon Economy, CO2 emissions |
| Date: | 2023–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp08&r=ene |
| By: | Burlinson, Andrew (University of East Anglia); Davillas, Apostolos (University of Macedonia); Giulietti, Monica (Loughborough University) |
| Abstract: | The widespread consumer adoption of low-carbon technologies (LCTs) is a cornerstone of net zero targets worldwide, however LCTs may not be equally distributed across socioeconomic characteristics. Our paper contributes to the literature by exploring socioeconomic inequality in LCT adoption and its underlying sources. We exploit nationally representative longitudinal data on the adoption of three key LCTs (solar photovoltaics, solar heating, and electric vehicles) in the UK. We investigate the aggregate role of predetermined socio-economic factors (including family background) in determining socioeconomic inequalities in LCT adoption. We further contribute to the literature by employing Shapley-decomposition techniques to reveal the relative contribution of each socioeconomic factor to the total estimated socioeconomic inequality. Our results suggest that socioeconomic inequalities in LCT adoption have fallen over the last decade but remained prevalent and highly significant. Analysis on longitudinal LCT adoption patterns shows that those following transitory LCT adoption patterns, and especially those who have recently adopted LCTs, are contributing to the reduction in the observed socioeconomic inequalities over time. Policies targeting the most disadvantaged socioeconomic background groups are crucial to mitigate the observed inequalities, potentially holding back the low-carbon transition. |
| Keywords: | technology adoption, inequality, low carbon economy, renewable resources |
| JEL: | L94 Q42 Q55 P46 O33 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16114&r=ene |
| By: | Arnold, Fabian (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Lilienkamp, Arne (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Namockel, Nils (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The transformation of the energy system causes increasing stress on distribution grid components. However, flexible EV charging, if incentivized adequately, can help mitigate this impact by reducing peaks in loads and feed-in. A comprehensive regional analysis is necessary to understand the potential of EV charging ŕexibility for reducing peaks on regional and national levels. To this end, we estimate regional residual demand time series for Germany for the years 2019, 2030 and 2045. We focus on modelling private EV diffusion via sigmoid functions and deriving driving and charging profiles based on micro mobility data. Further, we distinguish two deployment schemes for EV flexibility: (1) all EVs contribute to flattening the national residual load curve; (2) local EVs contribute to flattening regional residual load curves. We find that the residual load curves change structurally as positive and negative peaks in residual demand increase over the years on the regional and national levels. Although the absolute ŕexibility potential of EV home charging increases with the number of vehicles, its marginal utility to reduce load peaks declines. Especially in load-dominated regions, the national deployment of ŕexibility can result in higher regional demand peaks compared to a scenario without charging flexibility. The two approaches of flexibility activation can be contradictory in their effects: While regional incentivization is less efficient in reaching the smoothing in the national residual demand curve, national incentivization can even lead to increased strain on the local level. |
| Keywords: | Flexibility; Electric vehicles; Residual load; Energy transition; Charging profiles |
| JEL: | C61 D47 O33 Q41 Q48 |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2023_004&r=ene |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | energy crisis, international markets, vietnam |
| Date: | 2023–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04088100&r=ene |
| By: | Björnemalm, Rickard (Stockholm School of Economics); Sandström, Christian (The Ratio Institute) |
| Abstract: | Literature on innovation policy has so far paid little attention to policy failure and the mechanisms leading to failure. We describe the Swedish bubble in ethanol cars 2003-2013 and explain why well intended policies may end up with unsatisfactory results. Directives from the European Union forced policymakers in Sweden to act swiftly and the Swedish government put in place The Pump law which forced gas stations to supply ethanol as a fuel from 2006 and onwards. In combination with targeted tax deductions for ethanol cars, a sharp increase in demand took place in 2006-2008. As these started to experience engine problems by 2009-2010, demand declined. Tax deductions were subsequently altered in order to also include cars with very low CO2 emissions, a shift that contributed further to the downfall of ethanol cars. Our data suggests that domestic car manufacturers Volvo and Saab, along with Ford benefited from the ethanol policies as their combined market share for green cars surged from 12 to 75 percent 2005-2008. Ethanol was competitive in the political domain as the fuel was backed by the Centre Party and the associated farmers’ lobby group, but lacked economic, technological and environmental competitiveness. Our findings suggest that innovation policies aimed at supporting new technologies against vested interests may instead end up extending established interests as policies are put in place under the influence of various stakeholders. |
| Keywords: | Ethanol car; policy failure; innovation; technology; environment. |
| JEL: | O25 O31 O38 O44 Q42 |
| Date: | 2023–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0362&r=ene |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | The economic expansion witnessed in the last 0, 08% of modern human history is an anomalous event. It has been compared to a "rocket ship that took off five seconds ago, and nobody knows where it's going." This paper explores the destiny of this rocket ship. It shows that economic growth cannot continue indefinitely and critically reviews Green Growth and Degrowth as responses to planetary overshoot. It concludes that neither Green Growth nor Degrowth will stop overshoot. Moreover, Degrowth may worsen the environment, is a costly method to reduce carbon emissions, is a form of austerity for the working class, is redundant, and is politically infeasible. Finally, a third approach beyond Green Growth and Degrowth is outlined: acceptance of an inevitable societal collapse (as a feature, and not a bug, of complexity) and managing such a collapse to minimise harm, and to get rid of obsolete structures. This may lay the foundation for rebound growth, and a transition to a new kind of economy, which could be as qualitatively different from the current global economy as the industrial world differed from the hunter-gatherer world. |
| Keywords: | Green Growth, Degrowth, energy, ecology, development, collapse |
| JEL: | O40 O33 D01 D64 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16139&r=ene |
| By: | Giorgos Galanis (Queen Mary, University of London, School of Business and Management); Giorgio Ricchiuti (Università degli Studi di Firenze, Complexity Lab in Economics (CLE), Università Cattolica del Sacro Cuore, Milano); Ben Tippet (University of Greenwich) |
| Abstract: | From uneven development to unequal exposure to extreme weather events, the economic geography of climate change implies substantial heterogeneity regarding countries’ preferences for climate action. Yet, how this heterogeneity matters for sustaining high and effective levels of global climate action has not been analysed. This paper develops a novel geographical political economy model of climate action where countries’ choices are influenced by the evolution of greenhouse gas emissions, total participation in climate action and by the dispersion of economic geographical factors. Our results highlight that uneven geographic development can be a barrier to sustained high levels of global action. |
| Keywords: | Uneven Development, Global Political Economy, Climate Action, Green Transition |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:113&r=ene |
| By: | Kalee Burns; Julie L. Hotchkiss |
| Abstract: | This paper examines the distribution of the gasoline tax burden in the presence of increased electric vehicle adoption. Automobile manufacturers and even some states have ambitious goals to phase out gas-powered cars. However, in spite of these plans, the primary source of automobile infrastructure funding in the United States continues to be gasoline taxes. Less demand for gasoline threatens this source of revenue for maintaining roads and further shifts the burden of the tax toward consumers who can’t afford the still relatively expensive electric vehicles. The analysis here illustrates the fundamental regressivity of the gasoline tax, then simulates the distributional impact of replacing the current gas tax with a lump-sum/income tax with different assessment rules designed to replace revenue generated by the gasoline tax. For example, many states are considering switching from a gas tax to a tax based on miles driven to shore up infrastructure funding. Alternatively, the required revenue could be paid equally across income quartiles or assessed based on income. Not surprisingly, the degree of regressivity of replacing the gasoline tax depends on how the tax is assessed across the income distribution. |
| Keywords: | gas tax; incidence; consumer demand system; income distribution; equity |
| JEL: | H22 Q21 D11 |
| Date: | 2023–05–17 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedawp:96275&r=ene |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Technology analysts often dichotomize wind power projects as onshore vs offshore. They neglect nearshore projects installed in the intertidal flats. We explore the characteristics of this intermediate category using an original sample of Vietnam's wind power projects for the 2018–2021 period. The median investment for onshore wind power projects in Vietnam is 1695 USD/kW. It is 2011 USD/kW for nearshore projects. Nearshore wind-power generation capacity requires about 20 % more investment per MW than onshore, inter-quartile range of 0 % – 45 %. Nevertheless, nearshore projects remain much less capital-intensive than far-offshore projects – projected at 3150 USD/kWh in Vietnam based on experience in OECD countries with fixed-bottom projects. Escaping the onshore vs offshore dichotomy allows us to consider a different policy direction for the industry. Rather than pursuing bluefield mega-projects far offshore, a "small steps" policy to extend nearshore wind farms may be cheaper, faster, and more institutionally feasible. |
| Keywords: | Wind power, Vietnam, Investment cost, nearshore, energy policy |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03127371&r=ene |
| By: | Dionne, Georges (HEC Montreal, Canada Research Chair in Risk Management); El Hraiki, Rayane (HEC Montreal, Canada Research Chair in Risk Management); Mnasri, Mohamed (HEC Montreal, Canada Research Chair in Risk Management) |
| Abstract: | We study the intensity of joint hedging of oil and gas prices by US petroleum firms. We aim to explain the rationale for and find the determinants of joint hedging, as well as its impact on firm market value, performance, and riskiness. Joint hedging that takes into account the interdependence between risks should have a positive impact on firm value in the presence of multiple risks. We verify this theory in an innovative way, by testing the effects of hedging oil and gas prices simultaneously and by using an instrumental variable framework to attenuate the problem of endogeneity between firm value and risk management. We find evidence of higher market value, higher accounting performance, and lower riskiness for firms with a high propensity to jointly hedge their oil and gas production to a greater extent. We show that joint hedging dominates single-commodity hedging. |
| Keywords: | Joint hedging; enterprise risk management; oil price; gas price; hedging intensity; bivariate probit; causality; firm value. |
| JEL: | C13 C23 C25 D81 G23 G32 |
| Date: | 2023–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:crcrmw:2023_003&r=ene |
| By: | Moreno-Cruz, Juan; Harding, Anthony |
| Abstract: | Strategic interventions among nations are likely to differ across the portfolio of possible climate change policies, including mitigation, adaptation, and solar geoengineering. With this in mind, we propose a theory of climate policy-motivated foreign intervention to study different forms of international climate governance in the presence of power imbalance. Foreign countries have at least three options to intervene in another country’s domestic climate policy: a) agreements with extraction, b) agreements with transfers, and c) agreements with sanctions. We distill the fundamental properties of different climate-policy options into a simple parameterization and examine the incentives and preferences for each type of foreign intervention. We find that the preference for the type of intervention depends critically on the policy externality of different domestic climate policies. |
| Date: | 2023–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-24&r=ene |
| By: | Johansson, Magnus (Swedish National Road & Transport Research Institute (VTI)); Vierth, Inge (Swedish National Road & Transport Research Institute (VTI)); Holmgren, Kristina (Swedish National Road & Transport Research Institute (VTI)); Cullinane, Kevin (Swedish National Road & Transport Research Institute (VTI)) |
| Abstract: | The objective of this paper is to determine how policy instruments which aim to achieve a modal shift of long-haul freight transport from road to rail or sea affect the direct emissions to air of greenhouse gases, nitrogen oxides, sulfur dioxides, volatile organic compounds and particulate matter. The analysis is conducted in two stages. First, a range of forecasts reflecting different assumptions are applied using the Swedish national freight transport model (SAMGODS) to derive a range of possible future developments of emissions levels up to 2030 and 2040. This has involved determining emission factors per tonne-km for each of the SAMGODS model's six road freight vehicle types, eleven freight train variants and 22 ship types. The model outcomes are then compared to those of the base year of 2017. Second, the effects of two hypothetical modal shift policy instruments are analyzed with respect to their potential impact on emissions to air. The effects of these two policy instruments are evaluated for the base-year of 2017 and for the 2030 and 2040 forecasts. The paper also analyzes whether the Swedish climate objective for domestic transport in 2030 can be expected to be fulfilled given different forecasts and policy instruments. Within the context of a predicted large increase in total freight tonne-km (between 31 and 53%), emissions of greenhouse gases are calculated to decrease by 50 to 60% by 2040. This means that the Swedish freight transport sector will not achieve its share of greenhouse gas emissions reductions necessary to attain the national climate objective of a 70% reduction by 2030. Emissions of nitrogen oxides (NOx) are forecast to reduce by between 60 and 75%, emissions of sulfur dioxides to reduce by between 41 and 50%, emissions of volatile organic compounds to increase by 8 to 30% and emissions of particulate matter (from exhaust and tyre/road wear) are calculated to increase by between 13 and 33%. Using modal shift policy instruments to achieve greenhouse gas reductions is calculated to attain worse results over time, by 2040 it might even be counterproductive |
| Keywords: | Freight transport; Emissions; Climate goals; Environmental quality objectives; Emission factors; Forecasts; Policy analysis |
| JEL: | O21 O33 Q53 Q54 R41 R42 |
| Date: | 2023–05–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2023_005&r=ene |
| By: | Ogunpaimo, Oyinlola Rafiat; Buckley, Cathal; Hynes, Stephen; O'Neill, Stephen |
| Abstract: | Mitigation of climate change remains a central focus of the EU; with it’s 2030 Climate Target Plan, the Commission proposes to raise the EU's ambition on reducing greenhouse gas emissions (GHG) to at least 55% below 1990 levels by 2030. In Ireland, GHG emissions from the agricultural sector are high compared to other developed countries at 37.1% of total greenhouse gas emissions (GHG). Extensive efforts have been brought to bear on the development and evaluation of mitigation measures that reduce greenhouse gases from the agricultural sector. However, the extent to which mitigation measures reduce GHG emissions at the farm level has received less attention, most especially the implications of farm heterogeneity on optimal emission reduction. Using EU Farm Accountancy Data Network data for the Republic of Ireland in 2020, this study uses Marginal Abatement Cost Curve (MACC) analysis to assess a suite of GHG mitigation measures and accounts for interaction and heterogeneous effects across 5 different farm system types. The result of the study shows that crude protein in animal diets is the most cost-effective measure for all the farm systems. While liming and protected urea are cost-effective measures for all the farm systems on the other hand some measures fluctuate in their categorisation. The findings show that no two MACC curves across farm systems are the same, that is the rankings of measures change from one farm system to the other. The combination of mitigation measures to reduce GHG emissions may not necessarily yield a cost-effective outcome. |
| Keywords: | Environmental Economics and Policy, Farm Management |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aesc23:334541&r=ene |
| By: | Sven Heim (CERNA i3 - Centre d'économie industrielle i3 - Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, CRED - Centre de Recherche en Economie et Droit - UP2 - Université Panthéon-Assas, Centre for European Economic Research (Mannheim, Germany) - Zentrum für Europäische Wirtschaftsforschung (ZEW) - Universität Mannheim [Mannheim]); Georg Götz (University of Giessen Lung Center [Giessen, Germany]) |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03519694&r=ene |
| By: | Rodemeier, Matthias (Bocconi University); Löschel, Andreas (Ruhr University Bochum) |
| Abstract: | How can information substitute or complement financial incentives such as Pigouvian subsidies? We answer this question in a large-scale field experiment that cross-randomizes energy efficiency subsidies with information about the financial savings of LED lighting. Information has two effects: It shifts and rotates demand curves. The direction of the shift is ambiguous and highly dependent on the information design. Informing consumers that an LED saves 90% in annual energy costs increases LED demand, but showing them that 90% corresponds to an average of 11 euros raises demand for less efficient technologies. The rotation of the demand curve is unambiguous: information dramatically reduces both own-price and cross-price elasticities, which makes subsidies less effective. The uniform decrease in price elasticities suggests that consumers pay less attention to subsidies when information is provided. We structurally estimate that welfare-maximizing subsidies are up to 150% larger than the Pigouvian benchmark when combined with information. |
| Keywords: | information, nudges, optimal taxation, internality taxes, field experiments, energy efficiency, behavioral public economics |
| JEL: | D61 D83 H21 Q41 Q48 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16141&r=ene |
| By: | Scora, George; Barth, Matthew; Vu, Alex; Oswald, David |
| Abstract: | In recent years, a number of “Smart Pedal” systems have emerged, both as automotive OEM equipment and as third-party hardware. These “Smart Pedal” systems can be installed in vehicles with the potential to reduce fuel consumption and GHG emissions by smoothing a driver’s acceleration patterns, with little effect on travel time or safety. This research evaluates the potential effectiveness of a select “Smart Pedal” system for improving fuel economy and reducing GHG emissions in the Caltrans vehicle fleet. Following a literature review, the SmartPedalTM throttle controller, currently a $299 device that effortlessly attaches to the accelerator pedal, was selected for evaluation. The SmartPedalTM device corrects the accelerator pedal signal for micro accelerations caused by the influence of artifacts in the roadway on the driver’s foot and the accelerator pedal. The SmartPedalTM technology was evaluated using six Caltrans vehicles instrumented with Global Positioning Systems (GPS) enabled Engine Control Unit (ECU) data loggers. ECU and GPS data was collected for a baseline period of vehicle operation without the SmartPedalTM device installed, followed by a period of operation with the SmartPedalTM device installed. For each test vehicle, the two datasets provided comparison data to evaluate the “Smart Pedal” technology. The amount of data in each collection period, in terms of distance, ranged from 548 miles to roughly 2, 800 miles. An average fuel economy increase of up to 6.29% was observed for a vehicle with the "Smart Pedal" technology installed. The payback period for that scenario was evaluated based on the vehicle’s average monthly mileage during the study period and was about 15.76 months. Two of the six vehicles showed a small fuel economy decrease (-0.52% and -1.72%), which suggests that the effect of uncontrolled parameters is significant. This study consisted of real-world operation and the contribution of factors such as changes in payload, number of passengers, driver, accessory usage, etc., is unknown. Despite the limitations of this study, results were largely in-line with larger case studies based on fleet fuel consumption data that showed fuel economy savings in the range of 1.5% to 16.8%. View the NCST Project Webpage |
| Keywords: | Engineering, fuel economy, GHG, pedal controller, throttle controller, smart pedal, SmartPedal, eco pedal, driver behavior |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9xw8g1n0&r=ene |
| By: | Jannik Hensel; Giacomo Mangiante; Luca Moretti |
| Abstract: | This paper studies the impact of carbon pricing on firms’ inflation expectations and discusses the potential implications for what constitutes the core of most central banks’ mandate: price stability. Carbon policy shocks are identified from high-frequency changes in carbon futures price around regulatory events. The shock series is combined with French firm-level survey data. We document that a change in the price of carbon increases firms’ inflation expectations. We then investigate how firms’ business conditions are affected by carbon policy shocks and we find that firms’ own expected and realized price growth respond similarly to inflation expectations. The effect on price expectations is more persistent than on actual price growth leading to positive forecast errors in the medium- /long-run. We also show that a sizable share of the increase in inflation expectations is due to indirect effects. Firms rely on their own business conditions to form expectations about the aggregate price dynamics. Therefore, the expected positive growth in their own prices significantly contributes to the observed increase in inflation expectations. Finally, we study how firms’ responses are heterogeneously influenced by the shocks based on the share of input costs devoted to energy expenditures. We find that high energy-intensive firms tend to overreact relatively more in terms of their own price expectations compared to the actual price change the shocks induce. |
| Keywords: | Climate policies, carbon pricing, inflation expectations, monetary policy, survey data |
| JEL: | E31 E52 E58 Q43 Q54 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:zur:econwp:434&r=ene |
| By: | Iania, Leonardo (Université catholique de Louvain, LIDAM/LFIN, Belgium); Lyrio, Marco; Nersisyan, Liana (Université catholique de Louvain, LIDAM/LFIN, Belgium) |
| Abstract: | We study the effect of oil price shocks on bond risk premia. Based on Baumeister and Hamilton (2019), we identify the different sources of oil price shocks using a structural vector autoregressive (SVAR) model of the global market for crude oil. These structural factors are then used as unspanned factors in an affine term structure model based on the representation of Joslin et al. (2014). This is done for a total of 15 countries. Bond risk premia of net oil-exporting countries show a reaction to the structural shocks which is often statistically significant and in line with the expectation. For oil-importing developed countries, mainly the reaction to economic activity shocks is statistically significant and with the expected sign. The results for oil-importing developing countries are most of the time not statistically significant or run counter what one would expect. Among the unspanned factors, global economic activity explains most of the variability in bond risk premia. Finally, a historical decomposition around the outbreak of the COVID-19 crisis shows a variety of patterns in the evolution of bond risk premia. |
| Keywords: | Oil prices shocks ; affine term structure models ; bond risk premia |
| JEL: | C11 E43 E44 Q43 |
| Date: | 2023–04–27 |
| URL: | http://d.repec.org/n?u=RePEc:ajf:louvlf:2023002&r=ene |
| By: | Inmaculada Martinez-Zarzoso (Unversity of Goettingen and University Jaume 1); Leon Pilgrim (University Jaume 1) |
| Abstract: | The present study aims to shed light on the relationship between income inequality and greenhouse gas emissions by analyzing how income inequality affects carbon dioxide emissions and the emissions-income relationship. Since the literature on the impact of income and income inequality on emissions is still inconclusive, this paper offers further insights on how the effects of income and income inequality on emissions vary in countries with different income levels. The estimations are based on an unbalanced panel dataset that includes annual values for the industry structure, the share of the urban population, civil liberties and political freedom, globalization, and education covering 177 countries from 1990 to 2018. The paper finds evidence for a generally negative impact of income inequality on emissions patterns that turns positive for countries above a certain threshold of GDP per capita, which has not been reached by all high-income countries. Moreover, the results support the relationship proposed by the EKC only in richer countries. |
| Keywords: | Income per capita, income inequality, CO2 emissions, environmental Kuznets curve |
| JEL: | F |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2023.04&r=ene |
| By: | Simplice A. Asongu (Yaounde, Cameroon); Nicholas M. Odhiambo (Pretoria, South Africa) |
| Abstract: | This paper assesses the role of financial inclusion in moderating the incidence of entrepreneurship on energy poverty in Ghana. The assessment is made by using pooled data and two stage least squares. The exposition builds from the 7th (GLSS7) and 6th (GLSS6) rounds focusing on the Ghana Living Standards Survey (GSS, 2014, 2019) that is collected by the Ghana Statistical Service (GSS) from ten principal regions in the country. The findings show that entrepreneurship has an unconditional positive incidence on energy poverty while the interactive incidence between entrepreneurship and financial inclusion on energy poverty is negative. The corresponding financial inclusion policy thresholds that should be exceeded in order for financial inclusion to effectively moderate entrepreneurship for negative outcomes in energy poverty: (i) are between 0.154 and 0.280 index for the full sample; (ii) is between 0.187 index for the rural sub-sample; (iii) are between 0.200 and 0.333 index for the male sample. (iv) Thresholds are not computed for the rural and female sub-samples because at least one estimated coefficient that is needed for the computation of such thresholds is not significant. Policy implications are discussed. This study has complemented the existing literature by assessing how financial inclusion can be employed to influence the nexus between entrepreneurship and poverty in Ghana. |
| Keywords: | Energy poverty; Financial inclusion; Consumption poverty; Education; Household income |
| JEL: | D03 D12 D14 I32 Q41 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/035&r=ene |
| By: | Philipp Galkin; Dongmei Chen; Colin Ward (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Cost‒benefit analysis (CBA) has been used to assess investment projects for decades with the aim of quantifying their externalities and potential impacts on social welfare. However, the domain where CBA is applied has been primarily limited to direct public financing in several sectors where such impacts are perceived to be the most pronounced. This study explores the applicability of CBA principles to petrochemical investment and utilizes the proposed framework to assess a sample ethylene production project. |
| Keywords: | Belt and Road, Capital expenditure, Circular Carbon Economy, CO2 emissions |
| Date: | 2023–04–14 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp06&r=ene |
| By: | Sweeney, Richard L. |
| Abstract: | The 1990 Clean Air Act Amendments imposed extensive restrictions on refined petroleum product markets, requiring select end users to purchase new cleaner versions of gasoline and diesel. I estimate the impact of this intervention on refining costs, product prices and consumer welfare. Isolating these effects is complicated by several challenges likely to appear in other regulatory settings, including overlap between regulated and non-regulated markets and deviations from perfect competition. Using a rich database of refinery operations, I estimate a structural model that incorporates each of these dimensions, and then use this cost structure to simulate policy counterfactuals. I find that the policies increased gasoline production costs by 7 cents per gallon and diesel costs by 3 cents per gallon on average, although these costs varied considerably across refineries. As a result of these restrictions, consumers in regulated markets experienced welfare losses on the order of $3.7 billion per year, but this welfare loss was partially offset by gains of $1.5 billion dollars per year among consumers in markets not subject to regulation. The results highlight the importance of accounting for imperfect competition and market spillovers when assessing the cost of environmental regulation. |
| Date: | 2023–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-19&r=ene |
| By: | Benatti, Nicola; Groiss, Martin; Kelly, Petra; Lopez-Garcia, Paloma |
| Abstract: | This paper analyses the impact of changes in environmental regulations on productivity growth at country- and firm-level. We exploit several data sources and the environmen-tal policy stringency index, to evaluate the Porter hypothesis, according to which firms’ productivity can benefit from more stringent environmental policies. By using panel local projections, we estimate the regulatory impact over a five-year horizon. The identification of causal impacts of regulatory changes is achieved by the estimation of firms’ CO2 emissions via a machine learning algorithm. At country- and firm-level, policy tightening affects high-polluters’ productivity negatively and stronger than their less-polluting peers. However, among high-polluting firms, large ones experience positive total factor productivity growth due to easier access to finance and greater innovativeness. Hence, we do not find support for the Porter hypothesis in general. However for technology support policies and firms with the required resources, policy tightening can enhance productivity. JEL Classification: O44, Q52, Q58 |
| Keywords: | emissions, environmental regulation, euro area, Porter hypothesis, productivity |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232820&r=ene |
| By: | Ahmad Naimzada; Marina Pireddu |
| Abstract: | According to the existing empirical literature the price and the exchanged quantity volatility observed in real-world markets may be explained in terms of the endogenous fluctuations generated by the presence of nonlinearities. We then replace with a sigmoid adaptive best response mechanism, characterized by the presence of two horizontal asymptotes, the linear partial best response mechanism considered in Mamada and Perrings (2020), where the effect produced by quadratic emission charges on the dynamics of a Cournot duopoly model with homogeneous goods was investigated. Due to the sigmoid adaptive mechanism, output variation in each period depends also on current production volume. Moreover, the sigmoid nonlinearity, in addition to being well suited to describe the bounded output variations caused by physical, historical and institutional constraints, makes the model able to generate interesting, non-divergent dynamic outcomes, despite the linearity of the demand function and of marginal costs. Additionally, following the suggestion in Mamada and Perrings (2020), we deal with the more general case of differentiated products. Beyond analytically studying the stability of the unique steady state, coinciding with the Nash equilibrium, and the effect produced by the main parameters on the stability region, we propose two dynamical approaches which allow to evaluate the environmental policy efficacy when the Nash equilibrium is not stable and thus the standard comparative statics technique does not fit for the purpose. In particular, the former approach, which is based on a comparison of emissions for different levels of charges, shows that, also in case the Nash equilibrium is not stable, the considered environmental policy may be effective both with complements and with substitutes. The latter approach, consisting in a comparison of emissions along non-stationary trajectories and along the equilibrium path, in the proposed experiments highlights that emissions are larger along non-stationary trajectories. This gives us the opportunity to show how to act on the level of the asymptotes of the sigmoid adjustment mechanism to reduce output variations, reaching at one time a complete stabilization of the system and limiting pollution. |
| Keywords: | Cournot duopoly, emission charges, differentiated goods, sigmoid output adjustment mechanism, environmental policy efficacy, comparative dynamics. |
| JEL: | C61 C62 D43 Q51 Q58 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:mib:wpaper:517&r=ene |
| By: | Alessia Cafferata; Marwil J. Dávila-Fernández |
| Abstract: | This paper assesses the robustness of the so-called “natalist bias” of pollution control. The latter suggests that taxing emissions encourage agents to shift from production to tax-free activities such as procreation, further deteriorating the environment and gradually impoverishing the next generations. We relax the assumptions that human capital does not depend on environmental quality and that society does not allocate resources to pollution control. Using a similar Overlapping Generations (OLG) growth model, our findings indicate that taxation does not necessarily encourage agents to permanently shift away from production because living under better environmental conditions enhances productivity through human capital formation. As the government increases the emissions price, agents reduce consumption and education spending, hurting output in the short term. However, in the long run, the reduction in emissions that follows taxation more than compensates for the initial adverse effects, provided that the sensitivity of human capital accumulation to environmental degradation is strong enough. Furthermore, as we increase the coefficient capturing such pollution externality, a Neimark-Sacker bifurcation occurs, making the system compatible with persistent endogenous fluctuations |
| Keywords: | Climate change, Natalist bias, OLG, Growth, Neimark-Sacker bifurcation |
| JEL: | Q56 Q57 O11 C62 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:895&r=ene |
| By: | Clara I. González (Banco de España); Soledad Núñez (Banco de España) |
| Abstract: | Climate change and the transition to a low-carbon economy involve the financial system in two ways. First, because it channels the funds needed to make the large investments to comply with the Paris Agreement. Recent years have seen headway, albeit insufficient, in the development of new products, of which green bonds are the most advanced green financing instrument. Second, because of the financial risks associated with climate change and the transition to a low-carbon economy, which affect financial institutions’ balance sheets and are, moreover, systemic. This means that financial institutions have to assess these risks and their exposure to both of them, although it is not an easy task. There are still obstacles and challenges to overcome, such as the lack of a complete taxonomy that comprises what is “green” and what is not green, the lack of information on and knowledge of appropriate methodologies, and the long and uncertain time horizon of these risks, which calls for rolling out new skills and integrating these risks in the whole of the organisation, as well as taking a forward-looking approach. Lastly, central banks’ responsibilities regarding bank supervision, financial stability, asset management and monetary policy also make it necessary for them to analyse the potential systemic implications they may have for the economy and the financial system as a whole in order to incorporate climate-change issues into their supervisory and macro-prudential practices, into the portfolio management of their own portfolios, and, within their mandates, in their monetary policy framework. The progress made in recent years by financial markets, financial institutions and central banks has been significant although there is still a way to go. |
| Keywords: | climate change, financial risks, financial stability, green bonds, central banks, sustainable finance |
| JEL: | G10 G20 E58 Q50 |
| Date: | 2021–10 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:2126&r=ene |
| By: | Mr. Sakai Ando; Mr. Chenxu Fu; Mr. Francisco Roch; Ursula Wiriadinata |
| Abstract: | This paper assembles a comprehensive sovereign green bond database and estimates the sovereign greenium. The development of green bond markets has been one of the most important financial breakthroughs in the domain of sustainable finance during the last 15 years. A central benefit associated with green bonds has been that they exhibit a positive green premium (greenium), i.e., a lower yield relative to a similar conventional bond. Yet, issuances at the sovereign level have been relatively recent and not well documented in the literature. We find that green bonds are issued at a relatively small premium (4 basis points on average) in Advanced Economies. Yet, importantly, the greenium is growing over time and is considerably larger (11 basis points on average) for Emerging Market Economies. |
| Keywords: | Green Bonds; Sustainable Finance; Financial Innovation; Sovereign Debt; Greenium; Climate Change.; bond database; green bond; Green bond data; green premium; Climate finance; Bonds; Sovereign bonds |
| Date: | 2023–04–07 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/080&r=ene |
| By: | Khezr, Peyman; Pourkhanali, Armin |
| Abstract: | The Regional Greenhouse Gas Initiative (RGGI), as the largest cap-and-trade system in the United States, employs quarterly auctions to distribute emissions permits to firms. This study examines firm behavior and auction performance from both theoretical and empirical perspectives. We utilize auction theory to offer theoretical insights regarding the optimal bidding behavior of firms participating in these auctions. Subsequently, we analyze data from the past 58 RGGI auctions to assess the relevant parameters, employing panel random effects and machine learning models. Our findings indicate that most significant policy changes within RGGI, such as the Cost Containment Reserve, positively impacted the auction clearing price. Furthermore, we identify critical parameters, including the number of bidders and the extent of their demand in the auction, demonstrating their influence on the auction clearing price. This paper presents valuable policy insights for all cap-and-trade systems that allocate permits through auctions, as we employ data from an established market to substantiate the efficacy of policies and the importance of specific parameters. |
| Keywords: | Emissions permit, auctions, uniform-price, RGGI |
| JEL: | C5 D21 Q5 |
| Date: | 2023–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117267&r=ene |
| By: | Lucas Bretschger (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland); Evgenij Komarov (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland) |
| Abstract: | We determine optimal climate policy using a dynamic climate model that accounts for the damages to capital and human health from burning fossil fuels. Our theoretical macroeconomic approach incorporates a separate health sector into an integrated climate-economy framework and provides closed-form analytical solutions for the main model variables. Economic growth is endogenously driven by innovation, with labor availability and productivity, and thus human health, being critical. Calibrating the model, we find that 44% of total resource stock should be extracted when considering damages to capital, but only 1% when health damages are included. The health perspective requires optimal environmental policies that are much more stringent than those normally advocated in climate economics, since harm to human health has negative effects on economic growth. Socially optimal growth exceeds the rate under free market conditions. |
| Keywords: | Optimal climate policy, human health, climate damages, optimum resource stock |
| JEL: | I15 Q54 Q32 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:eth:wpswif:23-384&r=ene |
| By: | Monica Montella (ISTAT) |
| Abstract: | European Commission presented a plan to reduce the EU's greenhouse gas emissions by at least 55% in 2030 (compared to 1990 levels), but how can EU-wide coordinated action to meet the six targets (shown in Scheme 1) be measured? How can we monitor sustainable economic growth? It is, therefore, necessary to propose new indicators capable of measuring progress. Still, in order to build new indicators, it is needed at the same time to use a common language to define the actions taken at the European level). The goal of this paper is to propose adopting a new classification shown in Annex 1 (European Taxonomy). This classification focuses on the transition of the classification system of sustainable economic activities, or "ECO list". These are defined as the new ECO-SEA classification - codification of environmentally sustainable economic activities. This proposal informs environmental accountants of the need to adopt it to collect information from businesses, households, and the public administration. Those are the ones who invest in eco-sustainable economic activities and contribute to one or more of the six environmental objectives envisaged by the new European taxonomy. An EU-wide classification system will mean that we have a uniform and harmonized way of determining what economic activities can be regarded as sustainable. This is essential in order for the EU to become the first climate-neutral continent by 2050, as well as to fight biodiversity loss and other environmental challenges urgently. |
| Keywords: | Eco-GDP; European taxonomy |
| JEL: | E01 E23 K23 Q01 P42 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0223&r=ene |
| By: | International Monetary Fund |
| Abstract: | The economy is recovering supported by higher global energy prices and the rebound of the non-energy sector. Inflation has increased driven by imported energy and food prices, partial liberalization of fuel prices, and domestic weather-related shocks. The financial sector appears well-capitalized, liquid, and profitable. Higher global energy prices helped improve the external position, turn the FY2022 fiscal position into a surplus, and lower public debt. |
| Date: | 2023–05–05 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/157&r=ene |
| By: | Lehmann, Paul; Tafarte, Philip |
| Abstract: | Exclusion zones, like protected areas or setback distances, are the most common policy instrument to mitigate environmental impacts of human land-use, including the deployment of renewable energy sources. While exclusion zones may provide environmental benefits, they may also bring about opportunity costs. This paper aims to understand and quantify the drivers determining the opportunity costs related to environmental exclusion zones. Using a simple analytical model, we propose that opportunity costs of exclusion zones can be decomposed into a substitution effect (because production is shifted to sites with higher or lower marginal production costs) and an output effect (because more sites may be needed to satisfy demand for produced goods). We provide a numerical illustration for the opportunity costs for two examples of environmental exclusion zones - setback distances to settlements and forest bans - which are implemented for wind power deployment in Germany. The numerical illustration builds on a spatially explicit optimization model using GIS data for more than 100, 000 potential wind turbine sites in Germany. Our analysis reveals that opportunity costs may primarily arise in terms of higher local environmental impacts of wind power generation. Opportunity costs are mainly due to the output effect for setback distances, and the substitution effect for forest bans. We also show that the actual sign and size of opportunity costs depends a lot on the cost criteria under consideration as well as the type and stringency of the environmental exclusion zone. Our analysis emphasizes the importance to properly understand possible opportunity costs, and compare them carefully with possible benefits when implementing exclusion zones. Interestingly, our analysis also shows that very restrictive setback distances may not be recommendable at all: In our analysis they turn out to increase the total disamenity costs produced by wind power deployment - contrary to the policy objective pursued by this instrument. We believe that our analytical insights are also helpful when thinking about the impacts of environmental exclusion zones applied to other fields of environmental policy, such as urban development or agriculture. |
| Keywords: | forest, Germany, land use, land-use restriction, setback distances, spatial modelling, wind power |
| JEL: | Q23 Q24 Q28 Q42 R14 R32 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:22023&r=ene |
| By: | Luca Gagliardone; Mark Gertler |
| Abstract: | We develop a simple quantitative New Keynesian model aimed at accounting for the recent sudden and persistent rise in inflation, with emphasis on the role of oil shocks and accommodative monetary policy. The model features oil as a complementary good for households and as a complementary input for firms. It also allows for unemployment and real wage rigidity. We estimate the key parameters by matching model impulse responses to those from identified money and oil shocks in a structural VAR. We then show that our model does a good job of explaining unemployment and inflation since 2010, including the recent inflation surge that began in mid 2021. We show that mainly accounting for this surge was a combination oil price shocks and “easy” monetary policy, even after allowing for demand shocks and shocks to labor market tightness. Important for the quantitative impact of the oil price shock is a low elasticity of substitution between oil and labor, which we estimate to be the case. |
| JEL: | E0 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31263&r=ene |
| By: | Böttcher, Miranda; Geden, Oliver; Schenuit, Felix |
| Abstract: | Seit Netto-Null-Ziele ein integraler Baustein der Klimapolitik sind, wird verstärkt darüber nachgedacht, zusätzlich zu einer drastischen Reduzierung der Emissionen Kohlendioxid (CO2) aktiv aus der Atmosphäre zu entfernen. Die Herausforderungen, die mit landbasierten Methoden der Kohlendioxid-Entnahme (Carbon Dioxide Removal, CDR) verbunden sind, werden zunehmend offenbar. Angesichts dessen könnte der Ozean eine neue Hoffnung sein für Strategien zur CO2-Entnahme und -Speichrung in der Europäischen Union (EU) und weltweit. Allerdings ist der Ozean ein Gebiet mit sich überschneidenden und manchmal widersprüchlichen Rechten und Pflichten. Es besteht ein Spannungsverhältnis zwischen dem souveränen Recht der Staaten, die Meeresressourcen innerhalb ihrer ausschließlichen Wirtschaftszonen zu nutzen, und der internationalen Verpflichtung, den Ozean als globales Gemeinschaftsgut zu schützen. Die EU und ihre Mitgliedstaaten müssen das Verhältnis zwischen diesen beiden Paradigmen in der Meerespolitik klären, wenn sie in Erwägung ziehen, den Ozean gezielt als Kohlenstoffsenke oder -speicher zu verwenden. Derzeit wird die Meeresstrategie-Rahmenrichtlinie überarbeitet und ein Rahmen für die Zertifizierung von CO2-Entnahmemethoden auf EU-Ebene entwickelt. Die Schaffung von Querverbindungen zwischen beiden könnte den Weg bereiten für eine Debatte über Zielkonflikte und Synergien zwischen Schutz und Nutzung von Meeresökosystemen. |
| Keywords: | Klimawandel, Klimaschutz, CO2-Entnahme, CO2-Speicherung, Carbon Dioxide Removal, CDR, Ozean als Kohlenstoffsenke, Schutz und Nutzung des Ozeans, Meerespolitik, Klimapolitik, blauer Kohlenstoff, Deutschland, EU, USA, China, Vereinte Nationen, UN |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpakt:202023&r=ene |
| By: | Langot, François; Malmberg, Selma; Tripier, Fabien; Hairault, Jean-Olivier |
| Abstract: | French government implemented a subsidy on the purchase of energy products to shield consumers from rising energy prices during the energy crisis that started in 2021. We develop a new-Keynesian business cycle model with heterogeneous agents to assess the macroeconomic and redistributive effects of this energy subsidy. We propose a new methodology for ex-ante policy evaluation based on the government forecasts embedded in budgetary law. From a macroeconomic perspective, this policy supports economic growth and curbs inflation, but slightly rises debt-to-GDP ratio. In terms of redistribution, this policy contains the rise in consumption inequalities even if the subsidy is not targeted at poorest households. We compare the effects of this policy with alternative policies such as a re-indexation of wages on prices or a redistributive policy targeted at the most vulnerable households. |
| Keywords: | HANK model, Energy crisis, Tariff shield, Policy evaluation |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:cpm:docweb:2305&r=ene |
| By: | Matías Pacce (Banco de España); Isabel Sánchez (Banco de España); Marta Suárez-Varela (Banco de España) |
| Abstract: | Entre diciembre de 2020 y junio de 2021, los precios mayoristas de la electricidad casi se duplicaron en España. De acuerdo con las estimaciones presentadas en este documento, una parte significativa de este aumento —alrededor del 20%— vendría explicado por el encarecimiento observado, en el mismo período, en los precios de los derechos de emisión de CO2, cuyo efecto repercute directamente en los costes de generación de la energía eléctrica a través de tecnologías que hacen uso de combustibles fósiles. No obstante, la mayor parte del incremento —aproximadamente la mitad— provendría del aumento de los precios del gas, materia prima empleada por las centrales de ciclo combinado. La evolución de los precios mayoristas de la electricidad en otros mercados europeos ha sido similar a la del caso español. Sin embargo, existen diferencias sustanciales en cuanto a la traslación a los precios minoristas. En particular, el encarecimiento de los precios de la electricidad en el mercado mayorista habría explicado cerca de una tercera parte del aumento de la tasa interanual del índice armonizado de precios de consumo en España entre diciembre de 2020 y junio de 2021, mientras que su contribución a la inflación general de las principales economías del área del euro habría sido muy inferior. Las discrepancias en los sistemas de fijación de precios minoristas de la electricidad podrían estar detrás de las diferencias encontradas. |
| Keywords: | inflación, mercado eléctrico, régimen de comercio de derechos de emisión (RCDE), pass-through |
| JEL: | E31 Q41 Q43 Q52 |
| Date: | 2021–08 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:2120&r=ene |
| By: | Beckage, Brian; Lacasse, Katherine; Raimi, Kaitlin T.; Visioni, Daniele |
| Abstract: | We develop a conceptual model that describes the transitions in the operationalization of solar radiation modification (SRM) as a climate intervention to reduce impacts from anthropogenic greenhouse gas forcing of the climate system. We distinguish predevelopment, postdevelopment, and postdeployment phases of SRM operationalization. We explore the interactions between the human system and climate system that drive transitions between these stages in the emergence of SRM as a climate intervention. We discuss the insights around SRM development and deployment that emerge from this conceptual model. |
| Date: | 2023–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-22&r=ene |
| By: | Rabah Arezki (Harvard Kennedy School - Harvard Kennedy School, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Ha Nguyen (International Monetary Fund (IMF)); Tristan Reed (World Bank Group); Ana Fernandes (World Bank Group); Federico Merchán (Kiel University) |
| Abstract: | Countries with greater commodity export intensity have more concentrated markets for imported goods. Within countries over time, import market concentration is associated with higher domestic prices, suggesting that markups due to greater concentration outweigh any potential cost efficiency. Hydrocarbon fuel exporting economies especially have higher tariffs, tariff evasion, and non-tariff measures that concentrate markets. These results suggest a novel channel for the resource curse stemming from the monopolization of imports. |
| Keywords: | Imports, Market concentration, Natural resources, Resource curse |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cdiwps:hal-04092285&r=ene |
| By: | Mario Bernasconi; Miguel Espinosa; Rocco Macchiavello; Carlos Suarez |
| Abstract: | Under collusion, firms deviate from current profit maximization in anticipation of future rewards. As current profit maximization places little restrictions on firms’ pricing behaviour, collusive conduct is hard to infer. We show that bids from certain firms in the Colombian wholesale electricity market collapsed immediately after the announcement, and before the implementation, of a reform that potentially made collusion harder to sustain. After ruling out confounders, we uncover how the cartel functioned and how firms may have communicated. Calibrating the dynamic enforcement constraint confirms that collusion was sustainable before, but not after, the reform. The conclusions discuss policy implications. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10384&r=ene |
| By: | Bittó, Virág; Koch, Philipp; Schwarzbauer, Wolfgang |
| Abstract: | Im Februar 2023 stellte die EU-Kommission den ambitionierten Green Deal Industrial Plan for the Net-Zero Age vor. Das Ziel dieser Initiative ist insbesondere den Umstieg auf eine nachhaltigere und klimafreundlichere Produktion von in Europa industriell hergestellten Gütern zu unterstützen. In der grünen Transformation der österreichischen Ökonomie sowie des europäischen Wirtschaftsraums spielt die Produktion im Inland zwar eine relevante Rolle. Tatsache ist aber auch, dass der Innovation und der Forschung & Entwicklung eine ebenso wichtige Rolle zukommt: Zukünftige Spezialisierungsvorteile in der heimischen Produktion Österreichs oder Europas werden von der aktuellen Forschung & Entwicklung mitbestimmt. Darüber hinaus wird ein bedeutender Teil der Treibhausgasemissionen, die in der Produktion jener Güter anfallen, die in Europa konsumiert und investiert werden, nicht in Europa ausgestoßen. Ganz im Gegenteil: Westliche Staaten sind häufig Nettoimporteure von CO2-Emissionen. Vor diesem Hintergrund sollten Anstrengungen zur Bekämpfung der Klimaerwärmung und zur Begleitung der grünen Transformation nicht ausschließlich auf die Produktion in Europa abzielen. Ein Fokus auf Innovation allein, oder die ausschließliche Fokussierung auf den Konsum sind ebenso wenig zielführend, um dem Umstieg zu einer klimafreundlicheren Ökonomie nachhaltig zu schaffen. Vielmehr bedarf es wirtschaftspolitische Hebel stets vor den drei Säulen der grünen Transformation - der Industrie-, Technologie- und Klimapolitik - zu beleuchten und bewerten. (...) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ecoapn:53&r=ene |
| By: | Uddin, Gazi Salah (Department of Management and Engineering, Linköping University); Abdullah-Al-Baki, Chowdhury (Department of Management and Engineering, Linköping University); Park, Donghyun (Asian Development Bank); Ahmed, Ali (Department of Management and Engineering, Linköping University); Tian, Shu (Asian Development Bank) |
| Abstract: | Solar adoption exploded until 2015 in Bangladesh, setting a precedent for electrifying previously unconnected areas worldwide. This study tries to measure the welfare effects of solar adoption using the three rounds of the Bangladesh Integrated Household Surveys. We applied both ordinary least squares and propensity score matching techniques to estimate the welfare effects of solar adoption. We found that solar adoption is associated with higher income, expenditure, and asset value growth, and a massive reduction in kerosene expenditure than non-adopters. Other findings include that solar households tend to abandon sharecropping in favor of trading and poultry farming, and that children in solar households benefit in terms of schooling and nutrition. |
| Keywords: | energy transition; solar adoption; education; welfare; Bangladesh |
| JEL: | D12 O13 O55 Q42 |
| Date: | 2023–06–04 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0685&r=ene |
| By: | Maxence Gérard (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Pierre-Alain Jayet (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | To achieve the European bioenergy objectives, member states are likely to implement support policies targeting the use of lignocellulosic biomass for advanced bioenergy. Such policies could increase prices. In this study, we argue that with higher prices and new market opportunities for lignocellulosic biomass, farmers will account for crop residues in their choice of production and use of inputs. We test this hypothesis in an economic model of the EU agricultural supply coupled with a crop model to assess the effect of crop residue prices on residue supply, land allocation, yields, fertiliser use, and nitrogen pollution. We find that 120 million tonnes of dry matter (tDM) of crop residues are co-produced when they are unpriced. The price-induced additional supply is elastic to price but limited to 8% at €100/tDM and 13% at €200/tDM of the unpriced production. However, the increase in residue prices induces farmers to increase their crop areas and yields, which leads to significantly higher fertiliser consumption and nitrous oxide emission. These results indicate to policy makers that supporting prices would not substantially increase crop residue potential but could have collateral effects on the environment. They raise issues of coordination between bioenergy and agri-environmental policies in the EU. |
| Keywords: | Bioenergy policy, Renewable energy directive, Biomass supply, Crop residues, Mathematical programming model |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04071932&r=ene |
| By: | Shim, David |
| Abstract: | This paper examines the visual dimension of climate activism by exploring how Fridays for Future Germany (FFFG) uses visual imagery to convey the politics of climate change to wider audiences. The author argues that FFFG is an ideal-type form of visual activism in which visual imagery is central to its climate activism. The paper builds on climate change communication scholarship and visual social movement studies to contribute an inquiry about FFFG's visual activism. The focus is on FFFG's visual self-representations, which promises to give insights into its strategies of self-legitimation. The empirical analysis identifies recurring visual patterns in FFFG's visual activism and provides an interpretive reading about the implications of certain ways of seeing and showing climate change. The conclusion puts the findings in a wider political context, highlighting the importance of visualization in the (self-)legitimation of FFFG in debates about global climate governance. |
| Keywords: | Fridays for Future, visual activism, climate change communication, environmental communication, social movements, imaginaries/narratives, visibility |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:khkgcr:33&r=ene |
| By: | Cropper, Maureen L. (Resources for the Future); Muller, Nicholas; Park, Yongjoon; Perez-Zetune, Victoria |
| Abstract: | We examine whether counties designated as out of attainment with the National Ambient Air Quality Standards (NAAQS) under the 1970 CAA experienced larger reductions in total suspended particulates (TSP) during the 1970s than attainment counties. We answer this question using the official designation of nonattainment status which, between 1972 and 1978, was by Air Quality Control Region. Data from balanced panels of TSP monitors in operation 1969–1978 and 1971–1978 are used to examine the impact of nonattainment status on TSP. We also examine that impact using the definition in the literature, which designates a county as out of attainment if any of its monitors violated the NAAQS.On average, using the official designation, TSP fell by more than 9 μg/m3 more in nonattainment than attainment counties, controlling for county and year fixed effects, county population, employment, and per capita income. The average treatment effect is 10.2 μg/m3 and 9.1 μg/m3 using the 1969 and 1971 panels, respectively. Using the definition of nonattainment in the literature yields similar, albeit slightly smaller, average treatment effects: 6.0 μg/m3 and 7.7 μg/m3 using the1969–1978 and 1971–1978 panels, respectively. |
| Date: | 2023–05–10 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-14&r=ene |
| By: | Luiz de Mello; Teresa Ter-Minassian |
| Abstract: | This paper explores the nexus between decarbonisation and intergovernmental fiscal relations, focusing on related challenges and reform options. It highlights the significant role of subnational governments in tackling climate change. Subnational and national governments share responsibilities in areas such as taxation, spending and regulation pertaining to environmental protection, as well as climate change mitigation and adaptation, which calls for effective intergovernmental co-operation to align policy objectives and implementation strategies. The paper outlines decarbonisation requirements across sectors and discusses subnational government involvement in service delivery, investment, revenue generation and regulatory frameworks. Policy options to strengthen subnational contributions to national decarbonisation goals are presented. While focusing primarily on OECD countries, the paper acknowledges the need for improved information on subnational decarbonisation efforts in both advanced and developing countries. |
| JEL: | H23 H70 Q57 |
| Date: | 2023–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ctpaab:43-en&r=ene |
| By: | Sirini Jeudy-Hugo; Leon Charles |
| Abstract: | The first global stocktake (GST1) of collective progress towards the goals of the Paris Agreement will conclude at COP28. How the final stage of GST1 is organised, who is involved and how the final outputs are structured can influence the success of the process. This paper explores how to organise the final component of GST1 and how to design related outputs to be impactful. This paper sets out how to build broad, high-level momentum behind GST1 by structuring activities in 2023 and beyond into four phases of: i) awareness building; ii) socialisation; iii) decision-making; and iv) follow-up. This paper highlights the importance of technical outputs that are fit for purpose and identifies potential options for structuring technical outputs from GST1 to target different actors, including negotiators, policy makers, practitioners, and a broader audience beyond the UNFCCC process. The paper also sets out how to design a package of political outputs from GST1 to include different mutually supportive elements, including negotiated, consultative, and non-negotiated elements, which could play distinct roles and engage different actors. The paper underlines the importance of efforts to monitor how GST1 outputs are taken forward by different actors after COP28. This follow-up could build on existing provisions and establish new processes where needed, to help assess the success of the GST1 exercise and inform subsequent GST cycles. |
| Keywords: | Climate change, Global stocktake, NDCs, Outcomes, Paris Agreement |
| JEL: | Q54 Q56 Q58 F53 |
| Date: | 2023–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2023/01-en&r=ene |
| By: | Ángel Iván Moreno Bernal (Banco de España); Teresa Caminero García (Banco de España) |
| Abstract: | Disclosure of prudential information on environmental, social and governance (ESG) risks will become mandatory from June, 2022 for large institutions with securities traded on a regulated market of any Member State. This paper tries to assess how prepared European financial institutions are for this requirement and applies text mining techniques to analyse the prudential reports, commonly referred to as Pillar 3 reports, for 2019 and 2020 of most of the significant banks under the ECB direct supervision in order to evaluate the level of awareness of these institutions in relation to the materiality of ESG risks. By applying a simple taxonomy of terms based on lexicons and regular expressions using a tool that we have developed, we are able to identify relevant excerpts with a high level of precision searching for different combinations of concepts within the taxonomy of terms. The results indicate that although there is an increased awareness of the ESG risks, with a significant increase in smaller institutions (those with less tan 30 billion in assets), the level of detail included is generally low and the introduction of the new ESG mandatory disclosures should have a significant impact on the level of disclosures in this area. |
| Keywords: | ESG, environment, social, governance, sustainability, climate change, carbon emissions, environmental risks, physical risk, transition risk, natural language processing, Pillar 3 |
| JEL: | C81 G32 Q56 Q54 C19 |
| Date: | 2022–03 |
| URL: | http://d.repec.org/n?u=RePEc:bde:opaper:2204&r=ene |
| By: | Adèle Sébert (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Date: | 2023–07–04 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04086939&r=ene |
| By: | Auer, Judith; Link, Steffen; Plötz, Patrick |
| Abstract: | Adequate public charging infrastructure for battery electric trucks (BETs) is crucial for electrifying road freight transport and, thus, curtailing greenhouse gas emissions. Although manufacturer announcements on BET sales targets are promising, many logistic companies still question their technical feasibility due to the limited all-electric range and insufficient public charging infrastructure. Therefore, knowing the attractiveness of truck stop locations and their relevance for ensuring operational schedules is essential to facilitate the coordinated deployment of public charging infrastructure while its profitability is almost pre-secured. This paper aims to characterize current truck stop locations and evaluate possible public charging station locations for BETs via multi-criteria analyses using Geographical Information Systems (GIS) data. This study benefits from real-world truck stop location data, including geo-coordinates and occupancy data, and uses several GIS data sources to enhance the data and verify the presence of distinct truck-relevant features. Features may comprise the proximity to the TEN-T highway network or infrastructure availability, such as fueling stations or rest areas. Additionally, correlation and archetypal analysis are applied to better understand truck stops and their feature dependencies. The results demonstrate the high attractiveness of industrial areas with many potential business destinations along the TEN-T network. However, no particular feature determines the attractiveness of truck stop locations, but the distinct feature combination is decisive. The archetypal analysis reveals three extremes that may constitute the backbone of a public German charging infrastructure network: (1) industry hotspots, (2) hosted rest areas or truck stops along the TEN-T network, (3) and public truck parking areas with additional services. Finally, 1, 648 public parking and rest areas in Germany are identified using OpenStreetMaps.org (OSM) data, and their attractiveness for future BET charging infrastructure is evaluated. These results are provided in an interactive HTML-based map. |
| Keywords: | Charging infrastructure site selection, Multi-criteria decision analysis, GIS, Battery electric trucks |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:s042023&r=ene |
| By: | Michael Bechtel (University of Cologne); Michael Cannon (Washington University in St. Louis) |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkpbs:049&r=ene |
| By: | Jane Ellis; Luca Lo Re; Sofie Errendal |
| Abstract: | Parties established the Mitigation Work Programme (MWP) at COP26 to ”urgently scale up mitigation ambition and implementation” to help reach the temperature goal of the Paris Agreement. At COP27, Parties further fleshed out the MWP, which will be operationalised each year between 2023-2026 via at least two global dialogues, other dialogues and investment-focused events. This paper outlines key questions that could shape the aims, scope, focus, format, and participation in the dialogues, as well as the possible interplay between the MWP global dialogues and investment-focused events by drawing on experiences with other processes and events inside and outside the UNFCCC. This paper also provides lessons from examples in three sub-sectors where mitigation actions have been rapidly scaled up. This paper highlights several open questions related to the substance, process, and timing of the global dialogues and the investment-focused events, as well as potential linkages between these. The paper also discusses possible implications of different choices on these open questions. Decisions on the scope, format, and aims of the MWP dialogues will influence their impacts and the relevance of these dialogues to different countries and stakeholders. Yet, dialogues and events under the MWP will face trade-offs between concentrating on short- versus longer-term issues and outcomes and on choosing a broad or narrow focus. Such choices will impact how many countries the event or dialogue is relevant to. In addition, there are various ongoing initiatives and events outside the UNFCCC that are relevant to the aims of the MWP and that the MWP could usefully learn from. Careful mapping and co-ordination are needed to ensure that the MWP builds on, rather than duplicates, existing initiatives and events within and beyond the UNFCCC. |
| Keywords: | climate change, global dialogues, investment-focused events, Mitigation work programme, Paris Agreement, UNFCCC |
| JEL: | F53 H70 Q54 Q56 Q58 E22 |
| Date: | 2023–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2023/02-en&r=ene |
| By: | Ambre Maucorps (The Vienna Institute for International Economic Studies, wiiw); Roman Römisch (The Vienna Institute for International Economic Studies, wiiw); Thomas Schwab; Nina Vujanović (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Closing the prosperity gap between regions has always been a key political aspiration of the European Union – and cohesion policy is the primary means to achieve that goal. Europe is currently undergoing a digital and green transition that is drastically changing the way its economy works. How well prepared are regions to capitalise on the twin transition? And what impact will it have on regional cohesion in Europe? Our study finds that greening and digitalising the economy will likely widen the gap between rich and poor regions in Europe. |
| Keywords: | EU, EU regions, regional development, digitalisation, green transition, cohesion |
| JEL: | R11 O21 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:467&r=ene |
| By: | Zehui, Zhao |
| Abstract: | This paper offers a comprehensive review of pro-environmental behavior literature, emphasizing key theories, empirical evidence, and interdisciplinary implications. We discuss the role of individual, social, and contextual factors in shaping pro-environmental behaviors, drawing on major theoretical frameworks. We also examine the effectiveness of economic incentives and non-market approaches in promoting pro-environmental actions, stressing the importance of integrating behavioral economics and social psychology within environmental studies. Finally, we identify promising avenues for future research, including the role of digital technologies, climate change communication, and social networks in fostering sustainable societies. This paper aims to inform researchers and practitioners in developing effective strategies for promoting sustainability. |
| Date: | 2023–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:p27hb&r=ene |
| By: | Campa, Pamela; Muehlenbachs, Lucija (Resources for the Future) |
| Abstract: | In US environmental court cases, a cash penalty can be mitigated if a defendant volunteers to undertake an in-kind project, such as retrofitting school buses or building a public park. A goal of the policy is to address environmental justice concerns for low-income and minority populations, yet the historical record shows that in-kind settlements are most likely to occur in cases involving high-income, majority-white communities. A choice experiment reveals the public prefers in-kind settlements over cash, and a randomized survey reveals that in-kind settlements improve the public’s view of a violating firm, consistent with our finding of positive stock-market reactions to in-kind settlements. |
| Date: | 2023–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-21&r=ene |
| By: | Daniel Garrett; Ivan T. Ivanov |
| Abstract: | We study how regulation limiting ESG policies distorts financial market outcomes. In 2021 Texas enacted laws that prohibit municipalities from contracting with banks with certain ESG policies, leading to the exit of five of the largest municipal bond underwriters from the state. Issuers previously reliant on these underwriters face higher uncertainty and borrowing costs since the enactment of the laws. These effects are consistent with a deterioration in underwriter competition as issuers face fewer potential underwriters. Texas issuers will incur $300- $500 million in additional interest on the $31.8 billion borrowed during the first eight months following enactment. |
| Keywords: | ESG; Public Finance; municipal bonds; Banking Competition |
| JEL: | G24 G28 H74 |
| Date: | 2023–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedhwp:95954&r=ene |