|
on Energy Economics |
| By: | Thema, Johannes; Roa García, María Cecilia |
| Abstract: | This Wuppertal Paper analyses the energy transition models of Colombia and Germany. The emphasis of the exercise is on an analysis of options for the complete decarbonization of the energy system in Colombia as a Global South country. To this end, it analyses the current situation, projections, public policy and narratives, and contrasts it with Germany as one of the countries of the Global North with which Colombia has historically maintained energy trade relations and is currently collaborating in the exploration of energy alternatives for decarbonization. Detailed analysis of sectoral energy consumption in Colombia shows the sectors with the highest fossil energy consumption (in this order): transport (fuels), industry (gas, coal), electricity generation (gas, coal) and residential (gas). We show the projected increase in demand for fuels and electricity, and calculate the amount of electricity theoretically needed to substitute fossil sources in each sector. We estimate the total electricity required for decarbonization via sector coupling and derive a first estimation of the range of additional renewable energy capacities needed to supply this demand. We find that required capacities are expectedly large (56-110 GW), depending on decarbonization pathways, and that export capacity beyond national demand may be limited. Our analysis of the policy and scenario arena in both countries finds that Colombia is still lacking both sector-specific decarbonization strategies and an embedding in a systemic vision of a systemic energy transition. Germany has more advanced sector strategies and (national) systemic visions, but lacks embedding assumptions on energy imports in a global-system analysis, i.e. in the analysis of an energy transition in potential exporting countries like Colombia. We formulate requirements to close these gaps in our conclusions. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuppap:200&r=ene |
| By: | Gabriela Nascimento da Silva (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, UFRJ - Universidade Federal do Rio de Janeiro); Frédéric Lantz (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles); Pedro Rochedo (UFRJ - Universidade Federal do Rio de Janeiro); Alexandre Szklo (UFRJ - Universidade Federal do Rio de Janeiro) |
| Abstract: | Hydrogen from renewable sources has been discussed worldwide as a crucial energy carrier for climate change mitigation. It has multiple possibilities of production routes, as well as many current and potential applications. The objective of this research is to develop an optimization model for expanding and operating the hydrogen infrastructure for the promotion of hydrogen markets. The developed model can be applied for every location. It addresses the whole hydrogen value chain, from the H2 production, including water electrolysis and steam reform with and without carbon capture, up to the H2 delivery to consumers via road transportation or pipelines. The model was developed in GAMS language using Mixed Integer Linear Programming (MIP). Its objective function is to minimize the total cost of hydrogen supply, subject to demand, CO2 emissions constraints, availability of resources and energy and mass balances of technologies. The model has an hourly discretization and includes options of hydrogen storage, electricity storage, grid electricity use, in addition to mixing different complementary resources and production technologies. |
| Keywords: | Hydrogen, Energy, Climate |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-04147420&r=ene |
| By: | Kingsley I. Okere (Gregory University, Uturu, Nigeria); Stephen K. Dimnwobi (Nnamdi Azikiwe University, Awka, Nigeria); Chukwunonso Ekesiobi (Igbariam, Nigeria); Favour C. Onuoha (Evangel University Akaeze, Nigeria) |
| Abstract: | A popular theme in the literature is the examination of a variety of factors that contribute to energy poverty, but little is known about the connection between public debt and energy poverty, particularly for developing regions of the world. This study clearly illustrates the nexus between public debt and energy poverty, focusing on thirty SSA nations from the years 2007 to 2018. In conjunction with disaggregated energy poverty variables such as urban electrification, national electricity access, rural electrification, access to clean cooking fuels, renewable energy utilization and output, a composite energy poverty index was developed using the principal component analysis and estimated in relation to public debt via the Instrumental Variable Generalized Method of Moments approach. Additionally, the effects of a debt threshold are taken into account and their implications for the region’s energy poverty are assessed. The main finding of the study reveals that public debt has a positive and significant linear effect on the energy poverty index, national electricity access, urban electrification, rural electrification and access to clean cooking fuels while it reduces renewable energy production and utilization. Thus, our research contributes to the body of knowledge and offers policy recommendations for SSA's targeted reduction in energy poverty through sustainable public debt management. |
| Keywords: | Public Debt, Energy Poverty, Sub-Saharan Africa, Debt Threshold, Electricity Access. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/041&r=ene |
| By: | Serhan Cevik, João Tovar Jalles |
| Abstract: | Policymakers across the world are striving to tackle the century-defining challenge of climate change without undermining potential growth. This paper examines the impact of structural reforms in the energy sector (electricity and gas) on enviromental outcomes and green growth indicators in a panel of 25 advanced economies during the period 1970-2020. We obtain striking results. First, while structural reforms so far failed in reducing greenhouse gas emissions per capita, there is some evidence for greater effectiveness in lowering emissions per unit of GDP. Second, although energy reforms are not associated with higher supply of renewable energy as a share of total energy supply, they appear to stimulate a sustained increase in environmental inventions and patents per capita over the medium term. We also find strong evidence of nonlinear effects, with market-friendly energy reforms leading to better environmental outcomes and green growth in countries with stronger environmental regulations. Looking forward, therefore, structural reforms should be designed not just for market efficiency but also for green growth. |
| Keywords: | Structural reforms; environment; green growth; panel data; local projection; environmmental policy. |
| JEL: | D31 L43 L51 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp02782023&r=ene |
| By: | Huh, Sun Kyung (Korea Institute for Industrial Economics and Trade) |
| Abstract: | This study analyzes hydrogen policies in key countries and uses the implications carried by the analysis to formulate a strategic framework for the development of the domestic Korean hydrogen industry. A comprehensive national hydrogen strategy is crucial if Korea is to achieve a swift and effective transition to a hydrogen-based economy. The prevailing concerns surrounding climate change and environmental issues have prompted a significant shift in the global energy landscape. Consequently, numerous countries have embraced policies aimed at augmenting the proportion of renewable energy sources in order to mitigate greenhouse gas emissions. This pursuit of an energy transition and efforts toward carbon neutrality have emerged as central tenets of national energy and environmental agendas across the globe. Korea too is a part of this international movement toward cleaner energy and carbon neutrality, exemplified by the Korean government’s promulgation of the Energy Transition Roadmap in 2018. Hydrogen energy addresses a major shortcoming of many renewables: their intermittent nature. They hydrogen sector also contributes to the decarbonization of industries and transportation, and can stimulate economic growth as a burgeoning green sector. Recognizing the pivotal role that the hydrogen industry will play in facilitating the transition toward carbon neutrality, this study ascertains the distinctive features of domestic and international hydrogen industry policies, and proposes a suite of domestic policy strategies based on these findings specifically tailored to the Korean context. |
| Keywords: | hydrogen; hydrogen energy; hydrogen industry; alternative energy; renewable energy; greenhouse gas mitigation; climate change; carbon reduction; emissions reduction; clean energy; green energy; decarbonization; green industry; carbon neutrality; net-zero; Korea |
| JEL: | Q40 Q42 Q43 Q48 Q50 Q53 Q54 Q55 Q56 Q58 |
| Date: | 2023–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2023_016&r=ene |
| By: | Lee, Sangwon (Korea Institute for Industrial Economics and Trade) |
| Abstract: | Consumers and businesses on the demand side worldwide are beginning to look more favorably on tighter carbon regulations, leading players on the supply side to voluntarily launch carbon reduction initiatives. The industrial sector is also under increasing public pressure to minimize energy consumption and cut carbon emissions. Trends in this space include eco-friendly design, enhanced durability and longer usable life, remanufacturing, and recycling. Previous studies such as IPCC (2022) and Allwood et al. (2011) have stressed the importance of material efficiency in reducing carbon emissions in the industrial sector. These studies see material efficiency as a typical demand-side reduction effort. Identifying effective and diverse demand-side mitigation strategies is crucial to overcome the limitations of traditional supply-side industrial carbon reduction strategies. To date, carbon reduction activities in the industrial sector have primarily focused on supplier- or producer-funded energy transition policies, such as substituting fossil-based energy with alternative fuels and expanding renewable energy. In the context of government policies that prioritize supply, such as clean electricity and hydrogen policies, this paper reviews the contemporary discourse on material demand management, recycling, and reuse. |
| Keywords: | materials; material efficiency; carbon mitigation; emissions reduction; climate change; environmental policy; environmental regulation; carbon regulation; waste reduction; resource circularity; consumption reduction; sustainability; sustainable growth; sustainable development; Korea |
| JEL: | F18 F64 Q50 Q53 Q54 Q55 Q56 Q58 |
| Date: | 2023–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieter:2023_017&r=ene |
| By: | Olimpia Fontana (Mario Albertini Fellow at Centro Studi sul Federalismo, Torino, Italy) |
| Abstract: | In 2019, the European Commission launched the European Green Deal and outlined its developing model to combat climate change, particularly focused on accelerating the pace of reducing CO2 emissions. Emissions in Europe have thus far been reduced by 20% compared to 1990 values, while now the goal, as the "Fit for 55" package suggests, is to achieve a 55% reduction by 2030 and to reach climate neutrality by 2050. With these commitments, the EU intends to comply with the Paris Agreement by keeping “the global average temperature to well below 2°C above pre-industrial levels and pursuing efforts to limit the temperature increase to 1.5°C above pre-industrial levels, recognising that this would significantly reduce the risks and impacts of climate change†(Art. 2(1)(a) of the Agreement).[...] |
| Keywords: | European Commission, European Green Deal, CO2, climate change, carbon pricing, carbon leakage |
| JEL: | E43 E58 F33 F38 F41 F42 G15 H71 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:azz:ppaper:52&r=ene |
| By: | Kingsley I. Okere (Gregory University, Uturu, Nigeria); Stephen K. Dimnwobi (Nnamdi Azikiwe University, Awka, Nigeria); Chukwunonso Ekesiobi (Igbariam, Nigeria); Favour C. Onuoha (Evangel University Akaeze, Nigeria) |
| Abstract: | A popular theme in the literature is the examination of a variety of factors that contribute to energy poverty, but little is known about the connection between public debt and energy poverty, particularly for developing regions of the world. This study clearly illustrates the nexus between public debt and energy poverty, focusing on thirty SSA nations from the years 2007 to 2018. In conjunction with disaggregated energy poverty variables such as urban electrification, national electricity access, rural electrification, access to clean cooking fuels, renewable energy utilization and output, a composite energy poverty index was developed using the principal component analysis and estimated in relation to public debt via the Instrumental Variable Generalized Method of Moments approach. Additionally, the effects of a debt threshold are taken into account and their implications for the region’s energy poverty are assessed. The main finding of the study reveals that public debt has a positive and significant linear effect on the energy poverty index, national electricity access, urban electrification, rural electrification and access to clean cooking fuels while it reduces renewable energy production and utilization. Thus, our research contributes to the body of knowledge and offers policy recommendations for SSA's targeted reduction in energy poverty through sustainable public debt management. |
| Keywords: | Public Debt, Energy Poverty, Sub-Saharan Africa, Debt Threshold, Electricity Access. |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/041&r=ene |
| By: | Sebastian Busch; Ruben Kasdorp; Derck Koolen; Arnaud Mercier; Magdalena Spooner |
| Abstract: | Renewable energy sources (RES) play a crucial role in the decarbonisation of the electricity system. Their share in electricity production has grown significantly since 2005 and it is expected to grow further to reach over 70% of gross electricity generation in 2030. This development will change electricity market dynamics and increase the need for flexible power. The introduction of RES has so far been policy driven. Technology development has progressed thanks to massive public support to deployment. Different modes of support have been used, with various impacts on the market. We need to continue to move towards more market-based instruments in order to reduce both overall support costs and the distortive impact on the market, and in particular towards self-standing instruments such as power purchase agreements (PPAs). The key question is whether and when renewable technologies can become competitive in the electricity market. A complication is their cost structure, with close to zero marginal costs. Our analysis shows that their profitability depends on both the price level of energy commodities and the carbon price, and the flexibility of the electricity system to reduce the cannibalisation effect that renewables have on their own revenues. As renewables move to open merchant markets, we need to ensure adequate investments by introducing different forms of long-term contracts. Such contracts would contribute to stabilise market revenues of these investments, thereby benefiting both consumers and producers while ensuring market-based solutions. |
| JEL: | Q40 Q42 Q47 Q48 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:187&r=ene |
| By: | Destek, Mehmet Akif; Oguz, İbrahim Halil; Okumus, Nuh |
| Abstract: | Background: The adoption of growth strategies based on foreign trade, especially in the previous century when liberal policies began to dominate, is one of the main reasons for the increase in output and indirectly for environmental concerns. On the other hand, there are complex claims about the environmental effects of liberal policies and thus of globalization. Objectives: This study intends to analyze the effects of global collaborations involving 11 transition economies that have completed the transition process on the environmentally sustainable development of these nations. Research Design: In this direction, the effects of financial and commercial globalization indices on carbon emissions are investigated. The distinctions of globalization are used to distinguish the consequences of the two types of globalization. Subjects: In doing so, the de facto and de jure indicator distinctions of globalization are used to differentiate the consequences of two types of globalization. In addition, the effects of real GDP, energy efficiency, and use of renewable energy on environmental pollution are dissected. Measures: For the main purpose of the study, the CS-ARDL estimation technique that allows cross-sectional dependency among observed countries is used to separate the short and long-run influences of explanatory variables. In addition, CCE-MG estimator is used for robustness check. Results: According to the empirical findings, the economic growth and increasing energy intensity increases carbon emissions, but the increase in renewable energy consumption improves environmental quality. Furthermore, trade globalization does not have a significant impact on the environment in the context of globalization. On the other hand, the increase in de facto and de jure financial globalization indices results in an increase in carbon emissions, but de jure financial globalization causes more environmental damage. Conclusions: The harmful impact of de jure financial globalization on environmental quality suggests that the decreasing investment restrictions and international investment agreements of transition countries have been implemented in a manner that facilitates the relocation of investments from pollution-intensive industries to these countries. |
| Keywords: | Financial globalization, Trade globalization, De Facto, De Jure, Carbon emissions, Energy efficiency |
| JEL: | F18 F64 Q56 |
| Date: | 2023–06–06 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117735&r=ene |
| By: | Rickels, Wilfried; Rischer, Christian; Schenuit, Felix; Peterson, Sonja |
| Abstract: | In the European Union (EU), a second emissions trading system (EU ETS2) covering buildings, road transport and small energy and industrial installations is expected to be introduced from 2027. Until 2030, however, EU ETS2 will not be a separate pillar of EU climate policy, but will support Member States in meeting their national targets under the Effort Sharing Regulation (ESR). If there are net regional shifts in emission reductions within the EU ETS2, for example, if companies in one member state buy in aggregated terms net allowances, this must be compensated for at the national level. We study the EU ETS2 for the year 2030 using the general equilibrium model DART. In our analysis, the introduction of an EU ETS2 generates about a quarter of the efficiency gains of a comprehensive emissions trading system, assuming that nation states use the flexibility mechanisms of the ESR and compensate for regional abatement leakage through interstate emissions trading. However, this is only true if there is no extensive price stabilization in the EU ETS2. Our analysis suggests an EU ETS2 allowance price of around EUR 300/tCO2. Stabilizing the EU ETS2 price at the envisaged intervention price of 45 EUR/tCO2 would require about 415 million additional allowances and thus imply additional emissions of the same amount in 2030 alone. |
| Keywords: | European Union Climate Policy, Emissions Trading, Computable General Equilibrium Model |
| JEL: | Q54 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2249&r=ene |
| By: | Claude Crampes (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Thomas-Olivier Léautier (EDF - EDF) |
| Abstract: | To encourage building renovations and the replacement of old energy-consuming equipment, some governments have introduced a system of white certificates requiring large producers and distributors of natural gas, electricity and fuel to prove that they have financed energy-saving operations. The system is proving to be much less efficient than expected because energy saving works are "credence goods", which means that their quality can be correctly measured neither before nor after their achievement. Because of this informational bias, white certificates encourage economically inefficient works. Despite this, they are favored by the public authorities because they belong to the panoply of nonpunitive, non-fiscal, decentralized and local job-creating micro-policies. |
| Abstract: | Les certificats d'économie d'énergie (CEE) encouragent la rénovation des bâtiments et le remplacement de vieux équipements en obligeant les fournisseurs de gaz naturel, d'électricité et de fioul à réduire leurs livraisons. L'analyse microéconomique permet de relier le marché des certificats au marché des travaux d'économies d'énergie et à celui de l'énergie. Le handicap informationnel des ménages pour évaluer le lien entre travaux et consommation d'énergie et l'appartenance des travaux à la catégorie des « biens de confiance » expliquent la faible efficacité quantitative et financière du dispositif. Nous expliquons aussi pourquoi les CEE gardent les faveurs des pouvoirs publics malgré leurs mauvaises performances en mettant en avant leur appartenance à la panoplie des micropolitiques non punitives, non fiscales, décentralisées et créatrices d'emplois locaux. |
| Keywords: | Energy savings, White certificates, Micro-politics, Incentive mechanisms, Fuel poverty, Economies d’énergie, Certificats blancs, Micro-politiques, Mécanismes incitatifs |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04128779&r=ene |
| By: | Chu, Yin; Holladay, J. Scott; Qiu, Yun; Tian, Xian-Liang; Zhou, Maigeng |
| Abstract: | We leverage the timing of coalmine accidents to examine the effect of coal mining on air pollution. Safety regulations mandate that coal mining be suspended if a mine experiences an accident with 10 or more fatalities. We use a stacked difference-in-differences approach to compare counties with an accident to those experiencing an accident more than two years earlier or later. We provide evidence that the timing of accidents cannot be predicted. Next, we combine satellite-based air pollution data at the county-day level with the dates of accidents to show that on average, suspending coal mining reduces local air pollution by 8%. Changes in the level of coal consumption do not drive this reduction. We also find significant decreases in respiratory mortality after suspending coal mining with particularly large effects on vulnerable populations. |
| Keywords: | air pollution, coal mining, coalmine accidents, health impacts |
| JEL: | I10 Q40 Q53 R11 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1302&r=ene |
| By: | Schoniger, F.; Resch, G.; Suna, D.; Hasengst, F.; Pardo-Garcia, N.; Totschnig, G.; Formayer, H.; Maier, P.; Leidinger, D.; Nadeem, Imran |
| Keywords: | Agribusiness, Demand and Price Analysis, Environmental Economics and Policy |
| Date: | 2023–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iwmicp:337108&r=ene |
| By: | Valentin Poucineau (CRIEF - Centre de recherche sur l'intégration économique et financière - Université de Poitiers, RURALITES - RURALITES Rural, Urbain, Acteurs, Liens, Territoires, Environnement, Sociétés - Université de Poitiers) |
| Abstract: | This article focuses on local energy enterprises (LEEs), owned by local authorities and operating in a few territories in France. In a context of energy and climate crises, do their direct ties with local authorities make them levers for energy transition? A method combining statistical analysis and semi-directed interviews leads us to identify three clusters of LEEs. Many are too small to invest in energy transition. Others stand together and pool their resources to create joint ventures. Some large LEEs having expertise all over the energy value chain are regarded as tools that can be used by local authorities for energy transition. This paper discusses the relevance of alternative – or at least complementary – models to the centralized model in France in a context of territorialization of energy transition. To be considered as such, LEEs will have to adapt to market changes and new expectations regarding energy in territories. |
| Abstract: | Cet article s'intéresse aux entreprises locales d'énergie (ELE), opérateurs énergétiques détenus par des collectivités locales et présents sur quelques territoires en France. Dans un contexte de crise climatique et énergétique, leurs liens directs avec les collectivités locales en font-ils un levier de transition énergétique ? Une méthode combinant analyses statistiques et entretiens semi-directifs nous conduit à caractériser trois grands groupes d'ELE. De nombreuses ELE ne disposent pas d'une taille et de moyens suffisants pour investir dans la transition énergétique. D'autres s'unissent et mutualisent leurs moyens en créant des structures communes. Enfin, quelques ELE de taille importante et disposant d'une expertise sur toute la chaîne de valeur de l'énergie sont des outils dont peuvent se saisir les collectivités locales. Ce travail participe à la recherche de modèles alternatifs, ou tout du moins complémentaires, au modèle centralisé dans la territorialisation de la transition énergétique en France. Pour être considérées comme telles, les ELE devront s'adapter aux évolutions de marché et aux nouvelles attentes et besoins des territoires en matière d'énergie. |
| Keywords: | local energy enterprises, energy transition, territories, energy, entreprises locales d'énergie, transition énergétique, territoires, énergie |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04120406&r=ene |
| By: | Federica Lanterna (University Roma Tre, Department of Economics) |
| Abstract: | The paper suggests a possible strategy to reform energy excise duties to address the issue of climate change, following the provisions of the proposed revision of the Energy Taxation Directive. The analysis focuses on three products: petrol, diesel, and electricity consumption. The logic of the environmental reform follows the double dividend theory. Indeed, using a micro-simulation model on data from the Household Budget Survey provided by the Italian National Statistics Institute, a first reform scenario is simulated for the values of the excise duties mentioned. The focus is on the additional revenue generated by the environmental reform, which will be used to intervene firstly on VAT, the main indirect tax in Italy, and secondly on excise duties themselves. The aim is to demonstrate that more robust redistributive effects can be achieved by using public expenditure to limit the regressive effect of the environmental reform, working with a comprehensive tax reform. |
| Keywords: | Tax Reform, Energy excise duties, VAT, Redistribution |
| JEL: | H20 H23 H31 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:rtr:wpaper:0277&r=ene |
| By: | Merk, Christine; Andersen, Gisle; Nordø, Åsta Dyrnes; Helfrich, Torben |
| Abstract: | Carbon Capture and Storage (CCS) has been identified as an essential part of the lowest-cost path toward reaching the goals of the Paris Agreement. In Europe, an accelerated pace of CCS development indicates that a CO2 transport and storage system could be established by 2030. However, we know little about how the public views the market for transport and storage of CO2 currently under development in Europe. In early 2023, we conducted an experimental comparative survey to study public opinions on cross-border CO2 trade for storage in Denmark, Germany, the Netherlands, Norway and the UK. The share of respondents that perceive CCS as somewhat positive or very positive varies considerably between the countries; we find the highest share in Denmark (69%), followed by the UK (68%), Norway (67%), the Netherlands (57%) and the lowest share in Germany (49%). Especially concerns about environmental risks and costs lead to more negative views, while perceptions of job creation and economic opportunities lead to more positive evaluations. The experimental results show that importing CO2 for storage is among the least preferred options in all countries, while the storage of CO2 that has been captured in the own country is the most preferred option; the gap in the share of positive evaluations is substantial and amounts to up to 20 percentage points in the UK. Respondents who feel that countries are responsible for reducing national greenhouse gas emissions and storing their own captured CO2 drive the pattern of a more positive evaluation of a domestic CCS value chain and a more negative evaluation of importing CO2. |
| Keywords: | carbon capture and storage, public perceptions, trade |
| JEL: | F35 O18 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2252&r=ene |
| By: | Ran Yan; Nan Zhou; Wei Feng; Minda Ma; Xiwang Xiang; Chao Mao |
| Abstract: | As the two largest emerging emitters with the highest growth in operational carbon from residential buildings, the historical emission patterns and decarbonization efforts of China and India warrant further exploration. This study aims to be the first to present a carbon intensity model considering end-use performances, assessing the operational decarbonization progress of residential building in India and China over the past two decades using the improved decomposing structural decomposition approach. Results indicate (1) the overall operational carbon intensity increased by 1.4% and 2.5% in China and India, respectively, between 2000 and 2020. Household expenditure-related energy intensity and emission factors were crucial in decarbonizing residential buildings. (2) Building electrification played a significant role in decarbonizing space cooling (-87.7 in China and -130.2 kilograms of carbon dioxide (kgCO2) per household in India) and appliances (-169.7 in China and -43.4 kgCO2 per household in India). (3) China and India collectively decarbonized 1498.3 and 399.7 mega-tons of CO2 in residential building operations, respectively. In terms of decarbonization intensity, India (164.8 kgCO2 per household) nearly caught up with China (182.5 kgCO2 per household) in 2020 and is expected to surpass China in the upcoming years, given the country's robust annual growth rate of 7.3%. Overall, this study provides an effective data-driven tool for investigating the building decarbonization potential in China and India, and offers valuable insights for other emerging economies seeking to decarbonize residential buildings in the forthcoming COP28 age. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.13858&r=ene |
| By: | Andrea Ugolini; Juan C. Reboredo; Javier Ojea Ferreiro |
| Abstract: | We study whether the credit default swap (CDS) spreads of firms reflect the risk from climate transition. We first construct a climate transition risk (CTR) factor by using information on the vulnerability of a firm’s value to the transition to a low-carbon economy. We then document how this factor shifts the term structure of the CDS spreads of more vulnerable firms but not of less vulnerable firms. Considering the impact of different climate transition policies on the CTR factor, we find that these policies have asymmetric and significant economic impacts on the credit risk of more vulnerable firms, and negligible effects on other firms. |
| Keywords: | Climate change; Credit risk management; Econometric and statistical methods |
| JEL: | C24 G12 G32 Q54 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocawp:23-38&r=ene |
| By: | Dück, Alexander; Le, Anh H. |
| Abstract: | Climate change has become one of the most prominent concerns globally. In this paper, we study the transition risk of greenhouse gas emission reduction in structural environmental-macroeconomic DSGE models. First, we analyze the uncertainty in model prediction on the effect of unanticipated and pre-announced carbon price increases. Second, we conduct optimal model-robust policy in different settings. We find that reducing emissions by 40% causes 0.7% - 4% output loss with 2% on average. Pre-announcement of carbon prices affects the inflation dynamics significantly. The central bank should react slightly less to inflation and output growth during the transition risk. With optimal carbon price designs, it should react even less to inflation, and more to output growth. |
| Keywords: | Climate change, Environmental policy, Optimal policy, Transition risk, Model uncertainty, DSGE models |
| JEL: | Q58 E32 Q54 C11 E17 E52 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:imfswp:187&r=ene |
| By: | Francis X. Diebold; Glenn D. Rudebusch |
| Abstract: | Arctic sea ice has steadily diminished as atmospheric greenhouse gas concentrations have increased. Using observed data from 1979 to 2019, we estimate a close contemporaneous linear relationship between Arctic sea ice area and cumulative carbon dioxide emissions. For comparison, we provide analogous regression estimates using simulated data from global climate models (drawn from the CMIP5 and CMIP6 model comparison exercises). The carbon sensitivity of Arctic sea ice area is considerably stronger in the observed data than in the climate models. Thus, for a given future emissions path, an ice-free Arctic is likely to occur much earlier than the climate models project. Furthermore, little progress has been made in recent global climate modeling (from CMIP5 to CMIP6) to more accurately match the observed carbon-climate response of Arctic sea ice. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2307.03552&r=ene |
| By: | Berg, Tobias; Carletti, Elena; Claessens, Stijn; Krahnen, Jan Pieter; Monasterolo, Irene; Pagano, Marco |
| Abstract: | Climate risk has become a major concern for financial institutions and financial markets. Yet, climate policy is still in its infancy and contributes to increased uncertainty. For example, the lack of a sufficiently high carbon price and the variety of definitions for green activities lower the value of existing and new capital, and complicate risk management. This column argues that it would be welfare-enhancing if policy changes were to follow a predictable longer-term path. Accordingly, the authors suggest a role for financial regulation in the transition. |
| Keywords: | Climate Change, Financial Regulation and Banking |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safepl:100&r=ene |
| By: | Helm, Ines (Ludwig-Maximilians-Universität München); Koch, Nicolas (Mercator Research Institute on Global Commons and Climate Change (MCC)); Rohlf, Alexander (Mercator Research Institute on Global Commons and Climate Change (MCC)) |
| Abstract: | We study the effects of a large car scrappage scheme in Germany on new car purchases and local air quality by combining vehicle registration data with data on local air pollutant emissions. For identification we exploit cross-sectional variation across districts in the number of cars eligible for scrappage. The scheme had substantial effects on car purchases and did not simply reallocate demand across time in the short-term. Nevertheless, about half of all subsidized buyers benefited from windfall gains. The renewal of the car stock improved local air quality suggesting substantial mortality benefits that likely exceed the cost of the policy. While policy take-up is somewhat smaller in urban districts, improvements in air quality and health tend to be larger due to a higher car density. |
| Keywords: | cash for clunkers, local air quality, car scrappage schemes, emissions, car rebate |
| JEL: | H20 H23 Q53 Q58 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16266&r=ene |
| By: | Martijn Boermans; Rients Galema |
| Abstract: | We investigate the extent to which investors exhibit carbon home bias: disproportionate investment in carbon-intensive firms from the home market. We utilize a comprehensive stock-level holdings dataset of European investors to understand the relationship between carbon home bias, divestment and disclosure. We show that investors exhibit significant carbon home bias, with about half of their carbon emissions stemming from their domestic portfolios. Over our sample period 2013-2022, European investors have decarbonized their portfolios, but predominantly through their foreign portfolios. Domestic carbon exposures have persisted. Differences-in-differences analyses show that a shock inducing institutional investors to decarbonize is associated with higher ownership of domestic carbon-intensive stocks. Consistent with engagement, higher domestic ownership of carbon-intensive stocks is associated with lower carbon emissions and a higher likelihood of carbon disclosure. Our results show that carbon home bias is not driven by differential home-foreign carbon risk premia, but instead suggest investors’ successful engagement at home while divesting abroad. |
| Keywords: | home bias; carbon footprint; divestment; engagement; securities holdings statistics |
| JEL: | G11 G15 G23 H55 Q54 Q56 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:786&r=ene |
| By: | Swanson, Andrew C. |
| Keywords: | Environmental Economics and Policy, Marketing, Agricultural and Food Policy |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335864&r=ene |
| By: | Raffaele Sgarlato |
| Abstract: | The availability of historical data related to electricity day-ahead prices and to the underlying price formation process is limited. In addition, the electricity market in Europe is facing a rapid transformation, which limits the representativeness of older observations for predictive purposes. On the other hand, machine learning methods that gained traction also in the domain of electricity price forecasting typically require large amounts of data. This study analyses the effectiveness of encoding well-established domain knowledge to mitigate the need for large training datasets. The domain knowledge is incorporated by imposing a structure on the price forecasting problem; the resulting accuracy gains are quantified in an experiment. Compared to an "unstructured" purely statistical model, it is shown that introducing intermediate quantity forecasts of load, renewable infeed, and cross-border exchange, paired with the estimation of supply curves, can result in a NRMSE reduction by 0.1 during daytime hours. The statistically most significant improvements are achieved in the first day of the forecasting horizon when a purely statistical model is combined with structured models. Finally, results are evaluated and interpreted with regard to the dynamic market conditions observed in Europe during the experiment period (from the 1st October 2022 to the 30th April 2023), highlighting the adaptive nature of models that are trained on shorter timescales. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2306.14186&r=ene |
| By: | Mark Keese; Luca Marcolin |
| Abstract: | This study sets out a conceptual framework to analyse the impact of climate change and greenhouse gases mitigation efforts on the labour market, migration flows and people’s health, as well as the most important policy levers that can cushion potential negative impacts and maximise opportunities from the climate transition. |
| JEL: | I18 J08 J2 Q52 Q54 F22 |
| Date: | 2023–07–06 |
| URL: | http://d.repec.org/n?u=RePEc:oec:elsaab:295-en&r=ene |
| By: | Andersson, Jonas (Dept. of Business and Management Science, Norwegian School of Economics); Sheybanivaziri, Samaneh (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | In this paper, we study the performance of prediction intervals in situations applicable to electricity markets. In order to do so we first introduce an extension of the logistic mixture autoregressive with exogenous variables (LMARX) model, see (Wong, Li, 2001), where we allow for multiplicative seasonality and lagged mixture probabilities. The reason for using this model is the prevalence of spikes in electricity prices. This feature creates a quickly varying, and sometimes bimodal, forecast distribution. The model is fitted to the price data from the electricity market forecasting competition GEFCom2014. Additionally, we compare the outcomes of our presumably more accurate representation of reality, the LMARX model, with other widely utilized approaches that have been employed in the literature. |
| Keywords: | Prediction intervals; probabilistic forecasts; electricity prices; spikes; mixture models |
| JEL: | C10 C50 C53 |
| Date: | 2023–07–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2023_011&r=ene |
| By: | Tesfatsion, Leigh |
| Abstract: | Locational Marginal Pricing (LMP) implemented for grid-supported centrally-managed wholesale power markets is conceptually problematic. In analogy to the standard competitive (marginal cost = marginal benefit) spot-pricing rule, LMP assigns a common unit-price ($/MWh) to each unit (MWh) of grid-delivered energy, conditional on delivery location and time.However, competitive pricing requires the transacted asset be a commodity; that is, an asset with a standard unit of measurement such that, conditional on location and time, each trader (supplier or buyer) considers all "next" units available for trade to be perfect substitutes. In contrast, a trader's valuation of any "next" unit (MWh) of grid-delivered energy, conditional on grid delivery location b and operating interval T, typically depends on the specific dynamic attributes of the path of power injections and/or withdrawals (MW) used to implement this delivery at b during T. One option is to muddle through, forcing suppliers, buyers, and system operators to express cost and benefit valuations for "next" units of grid-delivered energy in per-unit form ($/MWh) without regard for the true costs and benefits of flexible power delivery. Another option is to explore alternative conceptually-coherent product definitions, settlement rules, and bid/offer contract formulations enabling electric power grids to function efficiently as flexibility-support insurance mechanisms. |
| Date: | 2023–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202307051413210000&r=ene |
| By: | Kim, Miseok; Yoo, Do-il |
| Keywords: | Environmental Economics and Policy, Agribusiness, Risk and Uncertainty |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335938&r=ene |
| By: | Alvaro MORENO; Diego GUEVARA; Jhan ANDRADE; Christos PIERROS; Sebastian VALDECANTOS; Antoine GODIN; Devrim YILMAZ |
| Abstract: | The transition to a low-carbon and climate resilient economy is a process of heavy restructuring of the productive network, during which sunset industries are in decline or even disappear, while sunrise industries emerge and flourish. This process affects all aspects of the economy: the demand and the supply side, the public and the private sector, the financial structure and the informal economy. In this paper, we propose a holistic framework that assesses the macroeconomic vulnerability that emerges from a low-carbon transition, especially in developing economies. We consider vulnerability as a multidimensional phenomenon and, thus, pay attention to all fiscal, social, monetary, financial and external dimensions of the economy. We, then apply this framework to the Colombian economy. We use indicative variables of vulnerability, in all its aspects, and a stock-flow consistent growth model in order to monitor their evolution across time. We consider two scenarios related to a reduction of real fossil fuel exports of Colombia and a global rise in the interest rates. Results indicate that the more delayed is the global transition, the higher the vulnerability of the Colombian economy. Similarly, global monetary tightening becomes an obstacle in the transition process, as it induces vulnerability stemming from the financial and external side of the economy. |
| Keywords: | Colombie |
| JEL: | Q |
| Date: | 2023–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en15700&r=ene |
| By: | Nicolas Gratiot; Jérémie Klein; Marceau Challet; Olivier Dangles; Serge Janicot; Miriam Candelas; Géraldine Sarret; Géremy Panthou; Benoît Hingray; Nicolas Champollion; Julien Montillaud; Pascal Bellemain; Odin Marc; Cédric-Stéphane Bationo; Loïs Monnier; Laure Laffont; Marie-Alice Foujols; Véronique Riffault; Liselotte Tinel; Emmanuel Mignot; Nathalie Philippon; Alain Dezetter (HSM - Hydrosciences Montpellier - IRD - Institut de Recherche pour le Développement - UM2 - Université Montpellier 2 - Sciences et Techniques - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique, HSM - Hydrosciences Montpellier - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Alexandre Caron; Guillaume Piton; Aurélie Verney-Carron; Anne Delaballe; Nelly Bardet; Florence Nozay-Maurice; Anne-Sophie Loison; Franck Delbart; Sandrine Anquetin; Françoise Immel; Christophe Baehr; Fabien Malbet (IPAG - Institut de Planétologie et d'Astrophysique de Grenoble - CNES - Centre National d'Études Spatiales [Toulouse] - OSUG - Observatoire des Sciences de l'Univers de Grenoble - INSU - CNRS - Institut national des sciences de l'Univers - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Météo-France); Céline Berni; Laurence Delattre (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Vincent Echevin; Elodie Petitdidier; Olivier Aumont; Florence Michau; Nicolas Bijon; Jean-Philippe Vidal (RiverLy - RiverLy - Fonctionnement des hydrosystèmes - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Sébastien Pinel; Océane Biabiany; Cathy Grevesse; Louise Mimeau; Anne Biarnès; Charlotte Récapet; Morgane Costes-Thiré; Mariline Poupaud; Maialen Barret; Marie Bonnin; Virginie Mournetas; Bernard Tourancheau; Bertrand Goldman; Marie Paule Bonnet; Isabelle Michaud Soret |
| Abstract: | A growing portion of scientists realises the need to not only alert about climate change, but also change their professional practices. A range of tools have emerged to promote more sustainable activities, yet many scientists struggle to go beyond simple awareness-raising to create concrete transition actions. Here we propose a game-based transition support system MaTerre180' , which has been designed to build scenarios of greenhouse gas (GHG) emission reductions in the academic community. After providing a common scientific background about the context (global warming issue, its causes and consequences) and setting up a challenge (50% reduction of carbon budget by 2030), the participants belonging to the academic community and its governance bodies immerse themselves into fictional characters, to simulate the behaviour of real research groups. The game has been deployed during the year 2021, with six hundred participants from nine countries and 50 cities. Results explore clear pathways for GHG reductions between 25 and 60%, and a median reduction of 46%. The alternatives allowing the greatest reduction are video communication tools (36%), followed by mutualization of professional activities and voluntary cancellation or reduction, that represent 22 and 14% of reduction, respectively. The remaining 28% of reduction consists of transport alternative, relocation of professional activities, extended duration of some travels, etc. In addition, the analyses pointed out the importance of the guided negotiation phase to bring out some alternatives such as relocation, local partners and computing optimization. An added value of this transition support system is that the information it collects (anonymously) will be used to answer pressing research questions in climate change science and environmental psychology regarding the use of serious games for promoting changes in attitudes and behaviours towards sustainability, and including broader questions on how network structures influence "climate behaviour", knowledge and the governance of the commons. Modestly, MaTerre180' offers an innovative game-based transition support system to build scenarios of greenhouse gas (GHG) emission reductions in the academic community. It is not simply a question of moving tokens on a virtual gameboard and a playful adjustment of practices, but rather a question of brainstorming about possible and desirable ways of remodelling research and teaching communities and embracing a new paradigm. After tens of workshops, our results show clear pathways for reaching up to 50% GHG reductions and stress the importance of guided negotiations to bring out alternatives to carbonized activities. This first attempt reinforces our belief that scientific engagement is at the heart of the international development agenda and a key approach to tear down the institutional barriers that inhibit the transformation needed to achieve a more sustainable society. |
| Date: | 2023–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04126329&r=ene |
| By: | Sheldon, Ian M.; McCorriston, Steve |
| Keywords: | International Relations/Trade, Environmental Economics and Policy, Marketing |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335697&r=ene |
| By: | Marco Percoco; Ana Maria Ruiz Rivadeneira; Margaux Lelong; Ludovica Mager |
| Abstract: | Infrastructure plays a pivotal role in achieving climate neutrality and resilience. However, infrastructure is also vulnerable to certain risks, and poor management of infrastructure assets can lead to increased dependency on fossil fuels and lock in climate-related risks. For this reason, an infrastructure governance framework is needed that can direct public investments towards sustainability objectives.To this end, the OECD has provided technical support to the Government of Ireland to strengthen climate-related and environmental considerations in public infrastructure decision making (i.e. strategic planning, project appraisal, budgeting). Building on Irish Public Spending Code and on standardised criteria based on international good practices, this working paper develops a new methodological approach to assessing the climate-related impacts of infrastructure and integrate climate-related risk and uncertainty in the appraisal of infrastructure projects. |
| Keywords: | adaptation, climate, environment, infrastructure, mitigation, public investment |
| JEL: | H54 O18 Q56 O44 |
| Date: | 2023–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaaa:61-en&r=ene |
| By: | Henry Aray (Department of Economic Theory and Economic History, University of Granada.); David Vera (Department of Economics, Craig School of Business, California State University Fresno.) |
| Abstract: | Lack of and delayed investment in high capital-intensive industries along with mismanagement can lead to collapse in output. This article focuses on the recent Venezuelan experience, a country with an oil-based rentier economy whose oil industry collapsed. We use synthetic control methods to compare actual oil production performance in Venezuela with a counterfactual scenario since the beginning of Hugo Chavez’s presidency in 1999. Our findings indicate that the synthetic Venezuela outperforms the actual Venezuelan oil production, with the gap increasing notably since the late 2000s. On average, actual oil production in Venezuela was approximately 1 million barrels per day lower than the synthetic scenario during the 1999-2021 period. The results are robust to including additional predictors and a battery of placebo test. |
| Keywords: | Oil, Venezuela, Synthetic control. |
| JEL: | L71 Q35 C32 |
| Date: | 2023–07–14 |
| URL: | http://d.repec.org/n?u=RePEc:gra:wpaper:23/10&r=ene |
| By: | Pascal LEVASSEUR (IFIP - Institut du Porc); Nicolas QUERAL (IFIP - Institut du Porc) |
| Abstract: | Poster présenté aux 54es JRP. Face à la nécessité de réduction des émissions de Gaz à Effet de Serre (GES), l'Union Européenne et la France se sont fixées un objectif de neutralité carbone à l'horizon 2050 (JORF, 2019). L'agriculture sera mise à contribution, son émission devant diminuer de 46% entre 2015 et 2050 (MTES, 2020). Pour cela, un certain nombre de leviers d'action sont mentionnés, dont la gestion des effluents d'élevage. A ce titre, des scénarios prospectifs de réduction des émissions directes de GES par une meilleure gestion des effluents d'élevages porcins ont été réalisés pour la période 2020 - 2050. |
| Keywords: | gaz à effet de serre, effluent, simulation |
| Date: | 2022–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04003299&r=ene |
| By: | Ohler, Adrienne |
| Keywords: | Health Economics and Policy, Environmental Economics and Policy, Resource/Energy Economics and Policy |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335760&r=ene |
| By: | Leogrande, Angelo |
| Abstract: | In this article, I estimate the value of “Individual Using Internet”-IUI in the context of Environmental, Social and Governance-ESG database of the World Bank. I use data from 193 countries for the period 2011-2020. I found that among others the value of IUI is positively associated to “Methane Emissions” and “People Using Safely Managed Sanitation Services” and negatively associated among others to “Fossil Fuel Energy Consumption” and “Renewable Energy Consumption”. I apply the k-Means algorithm for the clusterization optimized with the Elbow Method and we find the presence of three clusters. Finally, I confront eight machine-learning algorithms to predict the future value of IUI. I found that the best predictive algorithm is Linear Regression and that the value of IUI is expected to decrease on average of 0.30% for the analysed countries. |
| Keywords: | Analysis of Collective Decision-Making, General, Political Processes: Rent-Seeking, Lobbying, Elections, Legislatures, and Voting Behaviour, Bureaucracy, Administrative Processes in Public Organizations, Corruption, Positive Analysis of Policy Formulation, Implementation. |
| JEL: | D7 D70 D72 D73 D74 D78 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:117743&r=ene |
| By: | Karol Szafranek (Narodowy Bank Polski); Grzegorz Szafrański (Narodowy Bank Polski); Agnieszka Leszczyńska-Paczesna (Narodowy Bank Polski) |
| Abstract: | Following recent exceptional events in the world economy inflation increased remarkably across most countries, reinvigorating the prevalent discussion on the sources of consumer price dynamics. We analyse this issue for the small open economy of Poland by means of the Bayesian structural VAR. The model describes the evolution of eight key macroeconomic variables and is identified with a set of zero and sign restrictions. This framework, applicable also to other small open economies, provides sound economic interpretation of three domestic and five external shocks, of which two are country-specific and the remaining three are purely global. In a robust manner we show that country-specific energy price and global supply shocks mostly determine the recent inflation surge in Poland. We illustrate that inflation response to these two shocks has become markedly more persistent after the outbreak of the Covid-19 pandemic. We also demonstrate that the choice of an inadequate energy prices proxy may result in the understated importance of the energy price shock, whereas accounting for recent geopolitical threats and other exogenous events does not alter our baseline findings. For policy makers, we show that counterfactual inflation net of external shocks is far lower, but has recently increased as well. |
| Keywords: | Inflation decomposition, Bayesian SVAR model, energy prices, supply disruptions, domestic and external shocks. |
| JEL: | C11 C32 C51 E31 Q43 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:nbp:nbpmis:357&r=ene |
| By: | Ke, Yue; Sloggy, Matthew R. |
| Keywords: | Production Economics, Productivity Analysis, Labor and Human Capital |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ags:aaea22:335677&r=ene |
| By: | Donatella Gatti (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique, Université Sorbonne Paris Nord); Julien Vauday (CEPN - Centre d'Economie de l'Université Paris Nord - UP13 - Université Paris 13 - USPC - Université Sorbonne Paris Cité - CNRS - Centre National de la Recherche Scientifique, CEPN - Centre d'Economie de l'Université Paris Nord - LABEX ICCA - UP13 - Université Paris 13 - Université Sorbonne Nouvelle - Paris 3 - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité - Université Sorbonne Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Abstract: | While environmental values are spreading among societies, they hardly lead to effective political actions. This may be due to an overestimation of the sharing of those values among people, or to a lack of political power of environmentalists vis-à-vis materialist citizens. We propose a theoretical model to investigate these two channels, based on a setup a la Grossman and Helpman (1994), in which lobby is a strategy available to social groups, in order to influence the government on environmental taxes. Because societies have being historically marked by materialist habits, citizens sharing those habits face lower costs when getting organized. By considering endogenous lobby formation a la Mitra (1999), we show that, in order for environmental and materialist lobbies to coexist, the society must be mixed enough. Based on a dynamic framework a la Besley and Persson (2019), we investigate how social values change over time. Whenever lobbying by materialists prevails, a unique social equilibrium exists, featuring a stable hegemony by materialist values. If environmentalists get organized too, a second social equilibrium emerges, that is locally stable and more favorable to them. However, the threshold might be very high, above which the cultural transition effectively takes off. By calibrating the model, we study counter-acting forces allowing to improve the odds of the environmental transition, such as cultural mutations, social-signaling, and lowering organizational costs. Finally, we provide policy implications. |
| Abstract: | Alors que les valeurs environnementales se répandent dans les sociétés, elles ne débouchent guère sur des actions politiques efficaces. Cela peut être dû à une surestimation du partage de ces valeurs entre les gens, ou à un manque de pouvoir politique des écologistes vis-à-vis des citoyens matérialistes. Nous proposons un modèle théorique pour investiguer ces deux canaux, basé sur un cadre à la Grossman et Helpman (1994), dans lequel le lobbying est une stratégie à la disposition des groupes sociaux, afin d'influencer le gouvernement sur les taxes environnementales. Parce que les sociétés ont été historiquement marquées par des habitudes matérialistes, les citoyens les partageant font face à des moindres coûts lorsqu'ils s'organisent. En considérant la formation de lobby endogène à la Mitra (1999), nous montrons que, pour que les lobbies écologistes et matérialistes coexistent, la société doit être suffisamment mixte. Sur la base d'un cadre dynamique à la Besley et Persson (2023), nous étudions comment les valeurs sociales changent au fil du temps. Chaque fois que le lobbying des matérialistes prévaut, un équilibre social unique existe, caractérisé par une hégémonie stable des valeurs matérialistes. Si les écologistes s'organisent eux aussi, un second équilibre social émerge, localement stable, qui leur est plus favorable. Cependant, le seuil peut être très élevé, au-dessus duquel la transition culturelle s'enclenche effectivement. En calibrant le modèle, nous étudions les forces permettant d'améliorer les chances de la transition environnementale, telles les mutations culturelles, le social-signaling et la baisse des coûts d'organisation. Enfin, nous fournissons des implications de politique économique. |
| Keywords: | Lobby, Environmentalism, Carbon tax, Environmental policy, Social change |
| Date: | 2023–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cepnwp:hal-04158754&r=ene |
| By: | Csaba Burger (Magyar Nemzeti Bank (the Central Bank of Hungary)); Dariusz Wojcik (University of Oxford, School of Geography and the Environment) |
| Abstract: | Incorporating climate change considerations in central bank decisions has been fraught with legal and technical controversies. Legal, because interpretations of central bank mandates in relation to sustainability has been widely cited as hurdles to the discussion of climate change; and technical, because no methodology used to exist to assess and to measure the impact of climate risks on financial stability. This paper first analyses the spatial and temporal process climate change-related risk analysis spread among central banks by text mining - counting relevant bigrams - in 941 European financial stability reports of 39 central banks in Europe. It then maps climate risk relevant references of these reports. The study argues that geographical proximity played a significant role in the spread of the climate friendly central bank mandate interpretations. It also shows that the ECB, together with representatives of EU national central banks and their technical know-how, played a pivotal role in turning an innovation from being a novel research method into an accepted analytical framework. At the beginning of 2023, it now paves the way a towards a Basel-conform banking regulation within the EU, which reflects climate change risks too. |
| Keywords: | financial geography, central bank mandates, climate change, financial stability, text mining, bigram search, fiduciary duty |
| JEL: | E58 Q54 G17 G21 L38 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:mnb:opaper:2023/150&r=ene |
| By: | John Hartwick |
| Abstract: | We ”translate”Hotelling’s continuous-time, exhaustible resource extraction Model of 1931 into a linear program of present value extraction cost minimization subject to a stock endowment and period by period demand constraints. The appropriate form of the demand constraints allows for resource rent rising at the rate of interest in the dual program. A useful variant has the stock size endogenous. |
| Keywords: | resource extraction, linear program, rent and interest rate |
| JEL: | Q32 C61 D46 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1506&r=ene |