nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒08‒14
37 papers chosen by
Roger Fouquet, National University of Singapore

  1. Historical Evolution of Global Inequality in Carbon Emissions and Footprints versus Redistributive Scenarios By Victor Yakovenko; Gregor Semieniuk
  2. Energy and the Environment in Economic History By Karen Clay
  3. Reaching net zero while safeguarding competitiveness and social cohesion in Germany By Zeev Krill; Robert Grundke; Marius Bickmann
  4. China’s Carbon Emissions After the Pandemic By Khalid Ahmed; David I. Stern
  5. Green hydrogen: Implications for international cooperation. With special reference to South Africa By Stamm, Andreas; Altenburg, Tilman; Strohmaier, Rita; Oyan, Ece; Thoms, Katharina
  6. Assessing Benefits from Demand Response (DR) Program in the Different Climatic Zones of Georgia on the Example of Residential PV Installations By Ekaterine Maglakelidze; Eka Gegeshidze; Nino Jgamadze; Irakli Malaguradze; Maia Veshaguri
  7. Distributional and climate implications of policy responses to energy price shocks By Fetzer, Thiemo; Gazze, Ludovica; Bishop, Menna
  8. Emissions and Energy Impacts of the Inflation Reduction Act By John Bistline; Geoffrey Blanford; Maxwell Brown; Dallas Burtraw; Maya Domeshek; Jamil Farbes; Allen Fawcett; Anne Hamilton; Jesse Jenkins; Ryan Jones; Ben King; Hannah Kolus; John Larsen; Amanda Levin; Megan Mahajan; Cara Marcy; Erin Mayfield; James McFarland; Haewon McJeon; Robbie Orvis; Neha Patankar; Kevin Rennert; Christopher Roney; Nicholas Roy; Greg Schivley; Daniel Steinberg; Nadejda Victor; Shelley Wenzel; John Weyant; Ryan Wiser; Mei Yuan; Alicia Zhao
  9. Analysis of the state of the hydropower market in modern conditions: the case study of the BRICS countries By Dmitriy Pavlinov; Oksana Savchina
  10. The Changing Economics of China’s Electricity System: Why Renewables and Electricity Storage may be a Lower Cost Way to Meet Demand Growth than Coal By Kahrl , Fritz; Lin, Jiang
  11. Green monetary and fiscal policies: The role of consumer preferences By Mohamed Tahar Benkhodja; Xiaofei Ma; Tovonony Razafindrabe
  12. Is Air Pollution Regulation Too Stringent? Evidence from US Offset Markets By Joseph S. Shapiro; Reed Walker
  13. Curbing Energy Consumption through Voluntary Quotas: Experimental Evidence By Nicola Campigotto; Marco Catola; Simone D’Alessandro; Pietro Guarnieri; Lorenzo Spadoni
  14. A Robust and Efficient Optimization Model for Electric Vehicle Charging Stations in Developing Countries under Electricity Uncertainty By Mansur Arief; Yan Akhra; Iwan Vanany
  15. 국제사회의 산업부문 탄소중립 추진 동향과 대응방향: 중소기업을 중심으로(Global Efforts to Achieve Carbon Neutrality in the Industrial Sector and Implications: Focusing on SMEs) By Kim, Eunmi; Lee, Sunghee
  16. The Effects of Cash for Clunkers on Local Air Quality By Ines Helm; Nicolas Koch; Alexander Rohlf
  17. Identification of Expectational Shocks in the Oil Market using OPEC Announcements By Degasperi, Riccardo
  18. How Exposed Are U.S. Banks’ Loan Portfolios to Climate Transition Risks? By Hyeyoon Jung; João A. C. Santos; Lee Seltzer
  19. Policy Uncertainty Reduces Green Investment By Mengyu Wang; Jeffrey Wurgler; Hong Zhang
  20. Compensation for atmospheric appropriation By Fanning, Andrew L.; Hickel, Jason
  21. Dynamic Net Metering for Energy Communities By Ahmed S. Alahmed; Lang Tong
  22. Think Globally, Act Globally: Opportunities to Mitigate Greenhouse Gas Emissions in Low- and Middle-Income Countries By Rachel Glennerster; Seema Jayachandran
  23. Green cultural transition, environmental taxes, and collective lobbying by social groups of citizens By Donatella Gatti; Julien Vauday
  24. The role of social protection in environmental fiscal reforms By Malerba, Daniele
  25. Pro-environment Attitudes and Worker Commuting Behavior By Gimenez-Nadal, José Ignacio; Molina, José Alberto; Velilla, Jorge
  26. Statistical Physics Perspective on Economic Inequality By Victor M. Yakovenko
  27. Mobilités décarbonées : une transformation au milieu du gué By Yannick Perez; Carine Staropoli
  28. Climate change and reindeer herding – a bioeconomic model on the economic implications for Saami reindeer herders in Sweden and Norway By Irmelin Slettemoen Helgesen; Anne Borge Johannesen
  29. “Co-construction” in Deliberative Democracy: Lessons from the French Citizens’ Convention for Climate By Louis-Gaëtan Giraudet; Bénédicte Apouey; Hazem Arab; Simon Baeckelandt; Philippe Begout; Nicolas Berghmans; Nathalie Blanc; Jean-Yves Boulin; Eric Buge; Dimitri Courant; Amy Dahan; Adrien Fabre; Jean-Michel Fourniau; Maxime Gaborit; Laurence Granchamp; Hélène Guillemot; Laurent Jeanpierre; Hélène Landemore; Jean-François Laslier; Antonin Macé; Claire Mellier; Sylvain Mounier; Théophile Pénigaud; Ana Povoas; Christiane Rafidinarivo; Bernard Reber; Romane Rozencwajg; Philippe Stamenkovic; Selma Tilikete; Solène Tournus
  30. 10$ a ton of carbon ? The Stern-Nordhaus Controversy : Methodological and Ethical Issues By Mathieu Guigourez
  31. Growth and sustainability in post-Keynesian perspective: Some notes By Heise, Arne
  32. The Usage of Internet in the Context of ESG Model at World Level By Angelo Leogrande
  33. Post-growth and the demand-pull hypothesis of innovation: Biting the hand that feeds you? By Jasny, Johannes; Schubert, Torben
  35. Exploring new metrics to measure environmental innovation By Damien Dussaux; Alberto Agnelli; Nordine Es-Sadki
  36. Estimating the price elasticity of gasoline demand in correlated random coefficient models with endogeneity By Michael Bates; Seolah Kim
  37. Sectoral dynamics of industrial production in 2022 By Kaukin Andrei; Miller Evgenia

  1. By: Victor Yakovenko (University of Maryland); Gregor Semieniuk (University of Massachusetts Amherst)
    Abstract: Ambitious scenarios of carbon emission redistribution for mitigating climate change in line with the Paris Agreement and reaching the sustainable development goal of eradicating poverty have been proposed recently. They imply a strong reduction in carbon footprint inequality by 2030 that effectively halves the Gini coefficient to about 0.25. This paper examines feasibility of these scenarios by analyzing the historical evolution of both weighted international inequality in CO2 emissions attributed territorially and global inequality in carbon footprints attributed to end consumers. For the latter, a new dataset is constructed that is more comprehensive than existing ones. In both cases, we find a decreasing trend in global inequality, partially attributed to the move of China from the lower to the middle part of the distribution, with footprints more unequal than territorial emissions. These results show that realization of the redistributive scenarios would require an unprecedented reduction in global inequality far below historical levels. Moreover, the territorial emissions data, available for more recent years up to 2017, show a saturation of the decreasing Gini coefficient at a level of 0.5. This observation confirms an earlier prediction based on maximal entropy reasoning that the Lorenz curve converges to the exponential distribution. This saturation further undermines feasibility of the redistributive scenarios, which are also hindered by structural tendencies that reinforce carbon footprint inequality under global capitalism. One way out of this conundrum is a fast decarbonization of the global energy supply in order to decrease global carbon emissions without relying crucially on carbon inequality reduction.
    Keywords: Carbon footprint, Sustainable development, Maximum entropy
    JEL: Q01 Q54 Q56 Q43
    Date: 2023–07
  2. By: Karen Clay
    Abstract: Both energy and the environment are inputs into production, influencing the economy and the overall welfare of the population. While the economy itself has been a central focus of economic history from its inception, energy and the environment have received more limited attention. On the energy side, the relative lack of attention reflects economic historians' focus on labor, capital, and technology. Two areas that have received attention are the effects of energy on the spatial location of economic activity and the importance of coal for the Industrial Revolution. On the environmental side, the relative lack of attention likely reflects the focus on the positive aspects of industrialization and the difficulty of finding data related to air, water, and land pollution. One environmental area that has received attention is water pollution from human waste, which had large mortality impacts, particularly in cities. This essay reviews long run trends in energy use and water and air pollution and then turns to the energy and environmental literatures in economic history. The conclusion offers some thoughts regarding opportunities for further research in energy and the environment.
    JEL: N50 N70 Q32 Q53
    Date: 2023–06
  3. By: Zeev Krill; Robert Grundke; Marius Bickmann
    Abstract: Germany intends to reach climate neutrality in 2045, tripling the speed of emission reductions that was achieved between 1990 and 2019. Soaring energy prices and the need to replace Russian energy imports have amplified the urgency to act. Various policy adjustments are needed to ensure implementation and achieve the transition to net zero cost-effectively. Lengthy planning and approval procedures risk slowing the expansion of renewables, while fossil fuel subsidies and generous tax exemptions limit the effectiveness of environmental policies. Germany should continue to rely on carbon pricing as a keystone of its mitigation strategy and aim to harmonise prices across sectors and make them more predictable. Carbon prices will be more effective if complemented by well-designed sectoral regulations and subsidies, especially for boosting green R&D, expanding sustainable transport and electricity network infrastructure, and decarbonising the housing sector. Subsidies for mature technologies and specific industries should be gradually phased out. Using carbon tax revenue to compensate low-income households and improve the quality of active labour market policies would help to support growth and ensure that the transition does not weaken social cohesion.
    Keywords: Carbon Pricing, CGE climate modelling, Climate Policy, Energy, Environmental Taxation, Germany, Green Investment, Industrial Policy, Labour Market Analysis, Plant Closure, Social Consequences of Mitigation Policies, Transport
    JEL: H23 H54 J65 Q42 Q48 Q54 Q58 R48 C68
    Date: 2023–07–17
  4. By: Khalid Ahmed (Crawford School of Public Policy, Australian National University); David I. Stern (Crawford School of Public Policy, Australian National University)
    Abstract: Is China on a path to peak its greenhouse gas emissions in the near future? We compare trends in carbon emissions and energy production in the first five months of 2019 to the first five months of 2023. Emissions grew substantially, especially from the energy sector. Though renewable energy production has increased substantially, coal production is growing more strongly than before the pandemic. The changing geopolitical environment may further impede the peaking of emissions in China.
    Date: 2023–02
  5. By: Stamm, Andreas; Altenburg, Tilman; Strohmaier, Rita; Oyan, Ece; Thoms, Katharina
    Abstract: Green hydrogen - produced with renewable energy - is indispensable for the decarbonisation of economies, especially concerning 'hard-to-abate' activities such as the production of steel, cement and fertilisers as well as maritime transport and aviation. The demand for green hydrogen is therefore booming. Currently, green hydrogen is far more expensive than fossil fuel-based alternatives, but major initiatives are underway to develop a global green hydrogen market and bring costs down. Green hydrogen is expected to become cost-competitive in the mid-2030s. Given their endowment with solar and wind energy, many countries in the Global South are well-positioned to produce low-cost green hydrogen and are therefore attracting investments. Whether and to what extent these investments will create value and employment for - and improve environmental conditions in - the host economies depends on policies. This discussion paper analyses the potential industrial development spillovers of green hydrogen production, distinguishing seven clusters of upstream and downstream industries that might receive a stimulus from green hydrogen. Yet, it also underlines that there is no automatism. Unless accompanied by industrial and innovation policies, and unless there are explicit provisions for using revenues for a Just Transition, hydrogen investments may lead to the formation of socially exclusive enclaves. The paper consists of two parts. Part A provides basic information on the emerging green hydrogen market and its technological ramifications, the opportunities for countries with abundant resources for renewable energy, how national policies can maximise the effects in terms of sustainable national development and how this can be supported by international cooperation. Part B delves into the specific case of South Africa, which is one of the countries that has an advanced hydrogen roadmap and hosts several German and international development projects. The country case shows how a national hydrogen strategy can be tailored to specific country conditions and how international cooperation can support its design and implementation.
    Keywords: Green hydrogen, energy transition, industrial development, industrial policy, South Africa, Just Transition, technological learning, international cooperation
    Date: 2023
  6. By: Ekaterine Maglakelidze (The University of Georgia); Eka Gegeshidze (The University of Georgia); Nino Jgamadze (The University of Georgia); Irakli Malaguradze (The University of Georgia); Maia Veshaguri (Iv. Javakhishvili Tbilisi State University)
    Abstract: We continue the series of investigations toward the market uptake measures of renewable energy systems for achievement of balance between electricity supply and demand in the local electricity market of Georgia. At present the research objective is to assess the benefits of residential customers living in the different climatic zones of Georgia with varied average annual solar radiation and willing to participate in the Demand Response (DR) program so called net-metering (NEM) for the purpose to figure out in which climatic zones of Georgia is more reasonable to make investments in small-scale solar PV plants. For achieving the research objective, the total benefits/costs of residential customers (with the average monthly electricity consumption between 101 kWh and 301kWh) living in four different climatic zones of Georgia (Tbilisi, Batumi, Telavi, and Mestia) and willing to invest in small-scale solar PV installations with the installed capacity of 3, 465 kW and sell excess electricity (capacity) to the grid, is estimated. Besides, the capacity factors for Tbilisi, Batumi, Telavi, and Mestia were determined to illustrate how location affects the actual output of small-scale PV plants.During the study the following research hypothesis has been tested: ?Residential customers can benefit from retail-rate net energy metering if they choose to participate in this program but their benefits depend heavily on the location where PV installations are applied.? Our cost-benefit analyses revealed that solar is often a solution suitable for the geographical needs of remote communities with higher potential of solar radiation.
    Keywords: Demand Response (DR), small-scale solar PV plants, net energy metering (NEM), renewable energy resources, Distributed Energy Resources (DER), Energy Balance, energy efficiency (EE).
    JEL: D19 M31 Q21
    Date: 2022–10
  7. By: Fetzer, Thiemo (University of Warwick); Gazze, Ludovica (University of Warwick); Bishop, Menna (University of Warwick)
    Abstract: Which households are most affected by energy price shocks? What can we learn about the distributional implications of carbon taxes? How do interventions in energy markets affect these patterns? This paper introduces a measurement framework that leverages granular property-level data representing more than 50% of the English and Welsh housing stock. We use this ex-ante measurement framework to investigate these questions and set out an empirical evaluation framework to study the causal effects of the energy crisis more broadly. We find that the energy price shock has a more pronounced effect on relatively more affluent areas highlighting the likely progressive impact of carbon taxation. We document that commonly used untargeted interventions in energy markets significantly weaken market price signals for able-to-pay households. Alternative, more targeted policies are cheaper, easily implementable, and could better align energy saving incentives.
    Keywords: Energy crisis ; Carbon taxation ; Climate change ; Energy efficiency gap JEL codes: : Q48 ; C55
    Date: 2023
  8. By: John Bistline; Geoffrey Blanford; Maxwell Brown; Dallas Burtraw; Maya Domeshek; Jamil Farbes; Allen Fawcett; Anne Hamilton; Jesse Jenkins; Ryan Jones; Ben King; Hannah Kolus; John Larsen; Amanda Levin; Megan Mahajan; Cara Marcy; Erin Mayfield; James McFarland; Haewon McJeon; Robbie Orvis; Neha Patankar; Kevin Rennert; Christopher Roney; Nicholas Roy; Greg Schivley; Daniel Steinberg; Nadejda Victor; Shelley Wenzel; John Weyant; Ryan Wiser; Mei Yuan; Alicia Zhao
    Abstract: If goals set under the Paris Agreement are met, the world may hold warming well below 2 C; however, parties are not on track to deliver these commitments, increasing focus on policy implementation to close the gap between ambition and action. Recently, the US government passed its most prominent piece of climate legislation to date, the Inflation Reduction Act of 2022 (IRA), designed to invest in a wide range of programs that, among other provisions, incentivize clean energy and carbon management, encourage electrification and efficiency measures, reduce methane emissions, promote domestic supply chains, and address environmental justice concerns. IRA's scope and complexity make modeling important to understand impacts on emissions and energy systems. We leverage results from nine independent, state-of-the-art models to examine potential implications of key IRA provisions, showing economy wide emissions reductions between 43-48% below 2005 by 2035.
    Date: 2023–07
  9. By: Dmitriy Pavlinov (Peoples' Friendship University of Russia (RUDN University)); Oksana Savchina (Peoples' Friendship University of Russia (RUDN University))
    Abstract: Today, hydropower remains its position as the main source of renewable energy in the world, though the share of it in the energy mix has decreased with the increase of other alternative sources such as wind and solar. On the hydropower market, the BRICS countries hold four positions out of the top-10 leading countries by overall installed capacity and electricity generation, with China being the absolute leader, followed by Brazil in the 2nd, Russia in the 5th and India in the 6th places3. This article aims to analyse the dynamics of hydropower development in these countries, seeing as together they make up more than half of the market (55.8% in 2021, an increase of 16.4 p.p. from 2012). The authors assess indicators such as electricity generation and capacity, as well as identify the overall role hydropower holds in the energy mix of these countries and on the world hydropower market. It is noted that over the past 10 years, China has been the key player amongst the BRICS countries, followed by Brazil.
    Keywords: Hydropower, renewable energy sources, BRICS, electricity, developing countries
    JEL: L94 Q42 Q25
    Date: 2022–10
  10. By: Kahrl , Fritz; Lin, Jiang
    Abstract: Concerns around reliability in China’s electricity sector have rekindled interest in a traditional solution: building more coal-fired generation. However, over the past decade China’s electricity sector has seen significant changes in supply costs, demand patterns, and regulation and markets over the past decade, with falling costs for renewable and storage generation, “peakier” demand, and the creation of initial wholesale markets. These changes suggest that traditional approaches to evaluating the economics of different supply options may be outdated. This paper illustrates how a net capacity cost metric – fixed costs minus net market revenues – might be better suited to evaluating supply options in China. Using a simplified example with recent resource cost data, the paper illustrates how, with a net capacity cost metric, solar PV and electricity storage may be a more cost-effective option for meeting demand growth than coal-fired generation.
    Keywords: Social and Behavioral Sciences, peak demand, economics of electricity generation, China, coal power
    Date: 2023–07–01
  11. By: Mohamed Tahar Benkhodja (ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Xiaofei Ma (ESSCA - Ecole Supérieure des Sciences Commerciales d'Angers); Tovonony Razafindrabe (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique)
    Abstract: We establish a two-sector model to simulate the potential effects of green fiscal poli- cies and unconventional green monetary policy on the economy during a recovery or in case of a stimulus policy. We find that instruments such as a carbon tax, an implicit tax on brown loans, and a subsidy for the purchase of green goods are all beneficial to the green sector, in contrast to green quantitative easing. A carbon tax imposed directly on firms in the brown sector is the most effective tool to reduce pollution. More importantly, the marginal effects of green instruments on the economy depend on consumer preferences. Namely, the marginal effects are the most prominent when consumers start to purchase more green goods as an increasing part of their consumption basket. Furthermore, the effects of those green policies are more effective when the elasticity of substitution between green and brown goods increases. This finding suggests that raising consumers' awareness and ability to consume green goods reinforce the effectiveness of public policies designed for low-carbon transition of the economy.
    Keywords: Consumers’ preferences, E-DSGE, Economic recovery, Elasticity of substitution, Environmental policies, Stimulus policy
    Date: 2023
  12. By: Joseph S. Shapiro; Reed Walker
    Abstract: This paper describes a framework to estimate the marginal cost of air pollution regulation, then applies it to assess whether a large set of existing U.S. air pollution regulations have marginal costs exceeding their marginal benefits. The approach utilizes an important yet under-explored provision of the Clean Air Act requiring new or expanding plants to pay incumbents in the same or neighboring counties to reduce their pollution emissions. These “offset” regulations create several hundred decentralized, local markets for pollution that differ by pollutant and location. We show that these markets cover much US economic activity, experience search frictions, have rising prices over time, and reflect local regulatory stringency. We provide empirical and theoretical evidence consistent with the idea that offset transaction prices are close to the marginal cost of pollution abatement, and we compare offset prices to estimates of the marginal benefit of abatement from leading air quality models. We find that for most regions and pollutants, the marginal benefits of pollution abatement exceed mean offset prices more than ten-fold. In at least one market, however, estimated marginal benefits are below offset prices.
    JEL: H23 Q52 Q53 R11
    Date: 2023–06
  13. By: Nicola Campigotto; Marco Catola; Simone D’Alessandro; Pietro Guarnieri; Lorenzo Spadoni
    Abstract: This paper explores the potential of voluntary consumption quotas as a strategy to address resource supply shortages. The results of an incentivized online experiment are presented in which a Nash demand game was used to model an energy consumption problem. Participants had the option to join an energy conservation programme by accepting a consumption quota. Those who accepted the quota traded off their maximum demand for energy in exchange for the certainty that their demand would be met, while those who rejected the quota could demand and possibly earn more but risked suffering from a power outage, in which case they received nothing. Three different quota schemes are examined, and their policy implications are discussed. Our findings suggest that voluntary quotas may lead to a significant decrease in overall demand and contribute to enhancing consumption security.
    Keywords: energy consumption, online experiment, Nash demand game, power outages, voluntary quotas
    JEL: C72 C99 Q48
    Date: 2023–07–01
  14. By: Mansur Arief; Yan Akhra; Iwan Vanany
    Abstract: The rising demand for electric vehicles (EVs) worldwide necessitates the development of robust and accessible charging infrastructure, particularly in developing countries where electricity disruptions pose a significant challenge. Earlier charging infrastructure optimization studies do not rigorously address such service disruption characteristics, resulting in suboptimal infrastructure designs. To address this issue, we propose an efficient simulation-based optimization model that estimates candidate stations' service reliability and incorporates it into the objective function and constraints. We employ the control variates (CV) variance reduction technique to enhance simulation efficiency. Our model provides a highly robust solution that buffers against uncertain electricity disruptions, even when candidate station service reliability is subject to underestimation or overestimation. Using a dataset from Surabaya, Indonesia, our numerical experiment demonstrates that the proposed model achieves a 13% higher average objective value compared to the non-robust solution. Furthermore, the CV technique successfully reduces the simulation sample size up to 10 times compared to Monte Carlo, allowing the model to solve efficiently using a standard MIP solver. Our study provides a robust and efficient solution for designing EV charging infrastructure that can thrive even in developing countries with uncertain electricity disruptions.
    Date: 2023–07
    Abstract: 전 세계적으로 다수의 국가와 기업이 탄소중립을 추구함에 따라 다량의 온실가스를 배출하는 산업부문의 감축 노력이 강화되고 있다. 본 연구는 주요국의 정부뿐만 아니라 민간의 온실가스 감축 전략을 비교분석하고, 설문조사를 토대로 우리나라 중소기업의 정책 수요를 파악하여 시사점을 도출하였다. 특히 산업부문의 탈탄소화 과정에서 중소기업의 역할이 중요함에도 이를 다각도로 분석한 연구가 부족하다는 점에서 차별성을 확보하고 있다. The international community has stepped up efforts to achieve carbon neutrality or net zero emissions and has begun to expand the scope of greenhouse gas management to all companies in the supply chain. In particular, the decarbonization of industries that emit large amounts of greenhouse gases is an important task for countries not only to effectively respond to climate change, but also to improve their energy security and international competitiveness. Although decarbonization can be achieved by all companies regardless of their sizes, small and medium-sized enterprises (SMEs) are struggling with a lack of resources and capabilities. Therefore, the purpose of this study is to analyze the characteristics of national and multilateral carbon-neutral strategies, identify policy demands of SMEs based on survey results, and derive implications for the decarbonization of the industrial sector and, in particular, SMEs in Korea. Chapter 2 mainly analyzes policies to reduce greenhouse gases in the industrial sector and cases of multilateral cooperation between both major governments and global companies. Sweden, Germany, the United States, the UK and Japan are increasing their financial support for decarbonization efforts in their industrial sectors, also rearranging relevant policies and institutions. Sweden is working closely with the EU and its local governments to support carbon reduction projects, and also subsidizes investments with greenhouse gas reduction benefits but not expected to generate a return on investment without subsidies. Germany is inducing technological innovation and international cooperation among SMEs. The United States is expanding its investment in clean energy and providing research and development funding to SMEs and startups through federal agency-level programs such as SBIR/STTR programs. The UK is promoting decarbonization particularly in high-emitting industrial clusters, and is stimulating private investment through public funding for technology innovation. Japan is expanding its financial support in this area, for instance through tax benefits for companies pursuing green transformation (GX), and helping SMEs and startups enter or expand their business in developing countries through funds including Official Development Assistance (ODA).(the rest omitted)
    Keywords: Environmental policy; industrial policy; carbon neutrality; decarbonization; climate change; sustainability; SMEs
    Date: 2023–05–28
  16. By: Ines Helm; Nicolas Koch; Alexander Rohlf
    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
  17. By: Degasperi, Riccardo (University of Warwick)
    Abstract: Surprises in the price of oil futures computed on the day of OPEC announcements have been used as an exogenous measure of shifts in market beliefs about future oil supply to identify shocks to oil supply expectations. I show that these surprises capture not only revisions in market expectations about oil supply, but also revisions in expectations about oil demand. This con ation of supply and demand components invalidates the use of the surprises as an exogenous measure of shocks to oil supply expectations. I show that imposing an additional restriction on the sign of the co-movement between surprises in oil futures and changes in stock prices within the day of the OPEC announcement disentangles the two underlying shocks. Accordingly, I derive two robust instruments for the identification of shocks to oil supply and demand expectations that combine the surprises with this additional sign restriction, and I test them on a set of empirical specifications modelling the oil market and the global economy. A negative shock to oil supply expectations has deep and long-lasting stag ationary e ects on global economic conditions that are stronger and more immediate than previously reported. These effects represent a challenge for monetary authorities that seek to stabilise both prices and output. I show that information effects are a prominent feature of the oil market and need to be accounted for when estimating the effects of shocks to oil supply expectations.
    Keywords: Oil supply expectations ; Information frictions ; OPEC announcements ; Highfrequency ; identification ; External instruments ; International transmission JEL codes: C3 ; E3 ; Q4
    Date: 2023
  18. By: Hyeyoon Jung; João A. C. Santos; Lee Seltzer
    Abstract: Much of the work on climate risk has focused on the physical effects of climate change, with less attention devoted to “transition risks” related to negative economic effects of enacting climate-related policies and phasing out high-emitting technologies. Further, most of the work in this area has measured transition risks using backward-looking metrics, such as carbon emissions, which does not allow us to compare how different policy options will affect the economy. In a recent Staff Report, we capitalize on a new measure to study the extent to which banks’ loan portfolios are exposed to specific climate transition policies. The results show that while banks’ exposures are meaningful, they are manageable.
    Keywords: risk exposures; climate risk; banks; Network for Greening the Financial System (NGFS) scenarios
    JEL: G2
    Date: 2023–07–10
  19. By: Mengyu Wang; Jeffrey Wurgler; Hong Zhang
    Abstract: Government subsidies are often used to stimulate environment-friendly investment. We find that Chinese firms reduce green investment as the uncertainty of subsidies rises. This effect is identified from weather-driven fluctuations in air pollution that lead to fluctuations in subsidy allocations: Firms in cities where weather-driven subsidy uncertainty is high engage in less green R&D investment, patent applications, and research staff. Industries that are heavy emitters and those focused on environmental technologies are more affected. The results suggest that policy uncertainty may originate not only from political and macroeconomic shocks but from behavioral mechanisms that link policy to salient recent conditions.
    JEL: D8 O13 O3
    Date: 2023–06
  20. By: Fanning, Andrew L.; Hickel, Jason
    Abstract: Research on carbon inequalities shows that some countries are overshooting their fair share of the remaining carbon budget and hold disproportionate responsibility for climate breakdown. Scholars argue that overshooting countries owe compensation or reparations to undershooting countries for atmospheric appropriation and climate-related damages. Here we develop a procedure to quantify the level of compensation owed in a ‘net zero’ scenario where all countries decarbonize by 2050, using carbon prices from IPCC scenarios that limit global warming to 1.5 °C and tracking cumulative emissions from 1960 across 168 countries. We find that even in this ambitious scenario, the global North would overshoot its collective equality-based share of the 1.5 °C carbon budget by a factor of three, appropriating half of the global South’s share in the process. We calculate that compensation of US$192 trillion would be owed to the undershooting countries of the global South for the appropriation of their atmospheric fair shares by 2050, with an average disbursement to those countries of US$940 per capita per year. We also examine countries’ overshoot of equality-based shares of 350 ppm and 2 °C carbon budgets and quantify the level of compensation owed using earlier and later starting years (1850 and 1992) for comparison.
    Keywords: REAL—ERC-2022-SYG reference number 101071647 and the María de Maeztu Unit of Excellence (CEX2019–374 000940-M) grant from the Spanish Ministry of Science and Innovation.; María de Maeztu Unit of Excellence (CEX2019–374 000940-M) grant
    JEL: J50
    Date: 2023–06–05
  21. By: Ahmed S. Alahmed; Lang Tong
    Abstract: We propose a social welfare maximizing market mechanism for an energy community that aggregates individual and community-shared energy resources under a general net energy metering (NEM) policy. Referred to as Dynamic NEM (D-NEM), the proposed mechanism dynamically sets the community NEM price based on aggregated community resources. D-NEM guarantees a higher benefit to each community member than possible outside the community, and no sub-communities would be better off departing from its parent community. D-NEM aligns each member's incentive with that of the community such that each member maximizing individual surplus under D-NEM results in maximum community social welfare. Empirical studies compare the proposed mechanism with existing benchmarks, demonstrating its member and community-level welfare benefits.
    Date: 2023–06
  22. By: Rachel Glennerster; Seema Jayachandran
    Abstract: Reductions in greenhouse gas emissions are a global public good, which makes it efficient to act globally when addressing this challenge. We lay out several reasons that high-income countries seeking to mitigate climate change might have greater impact if they invest their resources in opportunities in low- and middle-income countries. Specifically, some of the easiest and cheapest options have already been tapped in high-income countries, land and labor costs are lower in low- and middle-income countries, it is cheaper to build green than to retrofit green, and global targeting matters in integrated economies. We also discuss economic counterarguments such as the challenge of monitoring emissions levels in low- and middle-income countries, ethical considerations, the importance of not double-counting mitigation funding as development aid, and policy steps that might help to realize this opportunity.
    JEL: F18 O13 Q54 Q56
    Date: 2023–07
  23. By: Donatella Gatti (University Sorbonne Paris Nord, CEPN UMR-CNRS 7234); Julien Vauday (University Sorbonne Paris Nord, CEPN UMR-CNRS 7234)
    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-Ã -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 (2023), 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.
    Keywords: Collective lobby, Environmentalism, Carbon tax, Environmental policy, Social change
    JEL: A13 D71 D72 H23
  24. By: Malerba, Daniele
    Abstract: Socio-ecological transitions need to address the pressing challenges of our time, namely climate change mitigation and social development - including poverty and inequality reduction - in a complementary manner. The importance of achieving resilient and sustainable societies has been made more evident by recent shocks such as the Covid-19 pandemic and the war in Ukraine. As a consequence, national and international development policies need to foster links between social and environmental goals and policies. One way to achieve such synergies is through environmental fiscal reforms, defined as the combination of carbon-pricing mechanisms and consequent revenue spending for environmental and socio-economic goals. Even though carbon pricing is just one of the instruments needed to achieve climate goals, it provides the complementary benefit of expanding revenues while incentivising a reduction in emissions though market signals. This paper discusses environmental fiscal reforms from the perspective of low- and middle-income countries and development cooperation, with a focus on how to improve the social outcomes of such reforms. While revenues can be recycled for different purposes - including compensating industries with high adaptation costs, further investments in environmental projects and research, and use for the general budget - the paper focusses on social spending. The revenue can be used to decrease poverty and inequality levels and to compensate the poorest for increases in prices by utilising social protection mechanisms. This is particularly important to garner broad societal support and to make environmental fiscal reforms and carbon pricing more socially acceptable and implementable at sufficient levels in more countries. The paper first presents the key features of different carbon-pricing policies and the revenues they can generate, especially for low- and middle-income countries that have limited fiscal space. It then shows how the revenue can be used to fund social protection mechanisms that can compensate the poorest and address distributional concerns. It underlines the gaps and limitations of current social protection programmes, especially in terms of low coverage of vulnerable populations. This also constrained the response to the war in Ukraine, as lower-income countries had to use price stabilisation mechanisms - which ultimately generated negative fiscal and environmental effects - to avoid inflicting greater burdens on the poor instead of providing targeted programmes. The paper also offers some design principles to best address distributional concerns, including sequencing and sectoral coverage. It then discusses the role that development cooperation can have in implementing environmental fiscal reforms in low- and middle-income countries. Overall, the paper suggests that environmental fiscal reforms can be used to achieve resilient societies and accelerate the fight against climate change, with the goal of building a more inclusive and sustainable future. Such reforms should become a priority of German development cooperation and a key lever for its strategic goals, instead of occupying a peripheral role, as it currently does. Most importantly, the analysis strongly underlines the case for environmental fiscal reforms rather than the current use of subsidies and price controls; this is true when considering both climate goals (as keeping prices low does not incentivise shifts in production and consumption) as well as social goals (e.g. cash transfers result in significantly greater levels of poverty and inequality reduction when compared to untargeted subsidies). Therefore, social protection investments are urgently needed, also in lower-income countries. The current energy crisis due to the war in Ukraine and the Covid-19 pandemic has made this clearer.
    Keywords: climate change, social security and inclusion
    Date: 2023
  25. By: Gimenez-Nadal, José Ignacio (University of Zaragoza); Molina, José Alberto (University of Zaragoza); Velilla, Jorge (University of Zaragoza)
    Abstract: The private vehicle is, for most developed countries, the prevalent commuting mode of workers, and one of the main source of CO2 emissions. The choice of the mode of transport for commuting trips clearly depends on individual preferences, and it may be that pro-environmental attitudes and values are related to environmental awareness and minimization of harm to the environment. This paper explores how pro-environmental attitudes and values relate to commuting behaviors, using data from the American Time Use Survey for the period 2003-2019. We focus on the time spent commuting, and on commuting modes. The results show that, net of observable factors, regions in which social attitudes are more pro-environmental are related to longer commuting times, but also to a higher percentage of active commuters and public transit commuters. These results suggest that policies aimed at shifting pro-environmental social values may help in reducing the use of private vehicles and encourage green means of transport, in order to reduce the environmental costs of commuting.
    Keywords: pro-environmental attitudes, commuting time, transport mode, American Time Use Survey, American Values Survey, general social survey
    JEL: A13 Q52 R41
    Date: 2023–06
  26. By: Victor M. Yakovenko
    Abstract: This article is a supplement to my main contribution to the Routledge Handbook of Complexity Economics (2023). On the basis of three recent papers, it presents an unconventional perspective on economic inequality from a statistical physics point of view. One section demonstrates empirical evidence for the exponential distribution of income in 67 countries around the world. The exponential distribution was not familiar to mainstream economists until it was introduced by physicists by analogy with the Boltzmann-Gibbs distribution of energy and subsequently confirmed in empirical data for many countries. Another section reviews the two-class structure of income distribution in the USA. While the exponential law describes the majority of population (the lower class), the top tail of income distribution (the upper class) is characterized by the Pareto power law, and there is no clearly defined middle class in between. As a result, the whole distribution can be very well fitted by using only three parameters. Historical evolution of these parameters and inequality trends are analyzed from 1983 to 2018. Finally, global inequality in energy consumption and CO2 emissions per capita is studied using the empirical data from 1980 to 2017. Global inequality, as measured by the Gini coefficient G, has been decreasing until around 2010, but then saturated at the level G=0.5. The saturation at this level was theoretically predicted on the basis of the maximal entropy principle, well before the slowdown of the global inequality decrease became visible in the data. This effect is attributed to accelerated mixing of the world economy due to globalization, which brings it to the state of maximal entropy and thus results in global economic stagnation. This observation has profound consequences for social and geopolitical stability and the efforts to deal with the climate change.
    Date: 2023–07
  27. By: Yannick Perez (CentraleSupélec, Gif-sur-Yvette, 91192, France); Carine Staropoli (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement)
    Abstract: Face aux défis du changement climatique, la révolution de la mobilité durable tant attendue et annoncée tarde à se concrétiser. Les transports sont encore responsables du tiers des émissions de gaz à effet de serre en France (dont 72 % pour le transport routier), 24 % au niveau mondial, et sont le seul secteur où elles continuent d'augmenter par rapport à 1990 (le ralentissement lié aux restrictions de déplacement pendant la pandémie en 2020 constituant une parenthèse). La décarbonation de la mobilité est pourtant un impératif pour respecter les engagements du pays d'atteindre la neutralité carbone en 2050 ce qui impose des étapes tout aussi ambitieuses et contraignantes. En 2030, l'Europe va obliger beaucoup de secteurs de l'industrie, dont les transports, à réduire leurs émissions de CO2 de 55 % par rapport au niveau actuel ce qui se traduit pour les constructeurs de véhicules légers par la nécessité de vendre des véhicules qui émettent en moyenne 55 % de moins de CO2 que les véhicules vendus en 2021. En 2035, la vente de véhicules thermiques neufs sera tout simplement interdite. Pourtant, des changements ont eu lieu mais à un rythme trop lent qui ne permet pas le passage à l'échelle : les usages de la mobilité évoluent, l'industrie innove avec une perspective technologique favorable du côté des véhicules électriques, les investisseurs publics et privés poursuivent leurs engagements dans des projets d'infrastructures et les politiques publiques sont mises en œuvre à tous les niveaux pour promouvoir la mobilité durable.
    Date: 2022–09
  28. By: Irmelin Slettemoen Helgesen (Department of Economics, Norwegian University of Science and Technology); Anne Borge Johannesen (Department of Economics, Norwegian University of Science and Technology)
    Abstract: The Arctic is warming three times faster than the global average. Rising temperatures could reduce the snow-covered season and increase plant productivity in the spring, fall and summer. While this may increase carrying capacity and growth of semi-domesticated reindeer, rising temperatures could also lead to an increase the frequency of ice-locked pastures, negatively affecting reindeer body mass, survival and reproductive success. We create a stage-structured bioeconomic model of reindeer herding that incorporates two counteracting effects of climate change on reindeer growth, reproduction, and survival. The model is calibrated using historical data on reindeer numbers and slaughter weights, in combination with weather data. We find that one more day with ice-locked pastures has a greater negative impact than the benefit of earlier spring. Then the model is used to simulate the economic impact of three climate change scenarios, and four areas in Norway and Sweden. All areas experience an improvement in herding profits in the Paris Agreement scenario. In the BAU scenario, the impact of climate change is negative for all areas. We also find that the potential loss in pasture related to certain emission mitigating policies may be more detrimental to reindeer husbandry than climate change itself.
    Keywords: reindeer husbandry, climate change, commons, livestock, food limitation
    JEL: Q24 Q54
    Date: 2023–07–07
  29. By: Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, 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); Bénédicte Apouey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Hazem Arab (UP1 - Université Paris 1 Panthéon-Sorbonne); Simon Baeckelandt (CERAPS - Centre d'Etudes et de Recherches Administratives, Politiques et Sociales - UMR 8026 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Philippe Begout; Nicolas Berghmans (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris); Nathalie Blanc (LADYSS - Laboratoire Dynamiques Sociales et Recomposition des Espaces - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité); Jean-Yves Boulin (IRISSO - Institut de Recherche Interdisciplinaire en Sciences Sociales - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Eric Buge (IMV - Institut Michel Villey pour la Culture Juridique et la Philosophie du Droit - Université Paris-Panthéon-Assas); Dimitri Courant (UNIL - Université de Lausanne = University of Lausanne, CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, Harvard University); Amy Dahan (CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Adrien Fabre (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]); Jean-Michel Fourniau (Université Gustave Eiffel); Maxime Gaborit (CEE - Centre d'études européennes et de politique comparée (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Laurence Granchamp (LINCS - Laboratoire interdisciplinaire en études culturelles - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique); Hélène Guillemot (CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Laurent Jeanpierre (CESSP - Centre européen de sociologie et de science politique - UP1 - Université Paris 1 Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique); Hélène Landemore (Yale University [New Haven]); Jean-François Laslier (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Antonin Macé (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Claire Mellier (Cardiff University); Sylvain Mounier; Théophile Pénigaud (TRIANGLE - Triangle : action, discours, pensée politique et économique - ENS de Lyon - École normale supérieure de Lyon - UL2 - Université Lumière - Lyon 2 - IEP Lyon - Sciences Po Lyon - Institut d'études politiques de Lyon - Université de Lyon - UJM - Université Jean Monnet - Saint-Étienne - CNRS - Centre National de la Recherche Scientifique); Ana Povoas (ULB - Université libre de Bruxelles); Christiane Rafidinarivo (LCF - Laboratoire de recherches sur les espaces créoles et francophones - UR - Université de La Réunion, CEVIPOF - Centre de recherches politiques de Sciences Po (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Bernard Reber (CEVIPOF - Centre de recherches politiques de Sciences Po (Sciences Po, CNRS) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique); Romane Rozencwajg (Cresppa-LabToP - Laboratoire Théories du politique : pouvoir et relations sociales - CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Philippe Stamenkovic (BGU - Ben-Gurion University of the Negev); Selma Tilikete (Cresppa-CSU - Cultures et sociétés urbaines - CRESPPA - Centre de recherches sociologiques et politiques de Paris - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CAK-CRHST - Centre Alexandre Koyré - Centre de Recherche en Histoire des Sciences et des Techniques - MNHN - Muséum national d'Histoire naturelle - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique, EHESS - École des hautes études en sciences sociales); Solène Tournus (CNRS - Centre National de la Recherche Scientifique)
    Abstract: Launched in 2019, the French Citizens' Convention for Climate (CCC) tasked 150 randomly-chosen citizens with proposing fair and effective measures to fight climate change. This was to be fulfilled through an "innovative co-construction procedure, " involving some unspecified external input alongside that from the citizens. Did inputs from the steering bodies undermine the citizens' accountability for the output? Did co-construction help the output resonate with the general public, as is expected from a citizens' assembly? To answer these questions, we build on our unique experience in observing the CCC proceedings and documenting them with qualitative and quantitative data. We find that the steering bodies' input, albeit significant, did not impair the citizens' agency, creativity and freedom of choice. While succeeding in creating consensus among the citizens who were involved, this co-constructive approach however failed to generate significant support among the broader public. These results call for a strengthening of the commitment structure that determines how follow-up on the proposals from a citizens' assembly should be conducted.
    Keywords: Citizens’ assemblies, Climate assemblies, Deliberative democracy, Co-construction, Carbon tax, Referendum
    Date: 2022–06
  30. By: Mathieu Guigourez (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique)
    Abstract: The Stern-Nordhaus controversy has been emblematic of the economic and ethical debate around the formulation of a discount rate and a carbon price. The aim of this article is to study this controversy in order to shed light on the epistemological and ethical postulates implicitly accepted by the two economists in their work, and more broadly in the integrated models concluding to a social cost of carbon. These implicitly accepted postulates are 1) the comprehension of economic rationality solely as the maximization of expected utility, and 2) a consequentialist point of view. The latter compartmentalize the scope of the ethical debate into cleavages over the formulation of an optimal discount rate. This article aims to broaden the ethical debate around these integrated models by questioning the implicit normativity of how economic rationality is at play in these models and proposes a new way of conceiving individual responsibility in regard to climate change.
    Keywords: Integrated Assessment Models, Economic Rationality, Discount Rate, Social Cost of Carbon, Individual Responsibility, Philosophy of Economics, Expected utility
    Date: 2023–05
  31. By: Heise, Arne
    Abstract: It can hardly be denied that perhaps the most serious challenge to mankind has not yet been addressed properly by post-Keynesianism: the over-stretching of our planetary boundaries. Most of the resources which we need to sustain our lives are non-renewable and, therefore, limited. And most of our production processes produce some kind of joint product (externality) like air, ground or water pollution which hold no value to the producer and instead harm the environment upon disposal. Consequently, the existence of mankind on this planet may be threatened when indispensable resources such as energy are running out and the environmental damage changes our living conditions in a way that mankind cannot survive.
    Keywords: Ecological crisis, monetary production economy, zero growth, stagnation, growth imperative
    JEL: B59 E12 P18 Q50
    Date: 2023
  32. By: Angelo Leogrande (LUM University Giuseppe Degennaro)
    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 Classification: D7 D70 D72 D73 D78, 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 Classification: D7, D70, D72, D73, D78
    Date: 2023–06–24
  33. By: Jasny, Johannes; Schubert, Torben
    Abstract: The post-growth discourse emphasizes the role need to limit economic growth as a primary means to stop continuous environmental degradation associated with production induced overexploitation of natural resources. A criticism of the post-growth discourse is, however, that innovation is known to be demand-driven implying that limiting growth may then undermine incentives to innovate. This may reduce the speed with which new environmentally friendly technologies are developed. Empirical analysis of this claim however do not exist. Relying on data from the European Manufacturing Survey 2018 for Germany, we match macroeconomic sector-growth statistics from the German Statistical Office and analyse how firm-level and sector level growth drive firms' innovation activities with a specific focus to environmental innovations. We find that while firm-level growth is strongly associated with all kinds of innovation activities, sector-level growth is not. Our results suggest that limiting overall economic growth may not undermine incentives to innovate as long as growth is still feasible on the level of the firm.
    Keywords: Economic growth, Innovation, Post-growth, Demand pull hypothesis, Green growth
    Date: 2023
  34. By: Sari, Ajeng Rossantika; Sulistiyana, Fitri; Pandin, Maria Yovita R
    Abstract: This research has the purpose of analyzing the application of green accounting which has the ability as environmental costs and environmental performance with the level of profit. The research object studied at this time is PT Unilever Indonesia Tbk which uses a descriptive qualitative method where the data collection source is the company's annual report distributed by the Indonesia Stock Exchange (IDX). The environmental cost variable has no influence on the level of profit, the environmental performance variable has no influence on the level of profit. This study aims to improve Green Accounting in the application of company profitability.
    Date: 2023–06–16
  35. By: Damien Dussaux; Alberto Agnelli; Nordine Es-Sadki
    Abstract: Several efforts have been made to track progress on environmental innovations using very different approaches. However, many lack coverage, granularity, timeliness and may involve high data collection costs, especially when conducted on a large scale. Traditional indicators also overlook commercialised innovation and breakthrough innovation. This issue is particularly relevant for environmental innovation, where scaling-up is considered key to address the climate, biodiversity and pollution crises. The paper reviews potential metrics to measure commercialised climate change-related innovation and to measure breakthrough environmental innovation. By comparing advantages and drawbacks of various options, the paper selects two families of metrics to measure commercialised climate change-related innovation: one based on patent assignments and the other one based on licensing agreements. For breakthrough environmental innovation, the paper concludes that a family of metrics based on venture capital data is currently the most promising option to pursue. The paper then develops the selected new metrics and provides trends in environmental innovation over time, across sectors and when possible across countries. The paper concludes that additional data sources should be explored to extend the application of the proposed new metrics in more countries and consider a more comprehensive set of supports to innovation.
    Keywords: assignment, breakthrough innovation, green innovation, innovation metrics, licensing, patent, transfer, venture capital
    JEL: O31 Q55
    Date: 2023–07–24
  36. By: Michael Bates (University of California-Riverside); Seolah Kim (Albion College)
    Abstract: We propose a per-cluster instrumental-variables approach (PCIV) for estimating correlated random coefficient models in the presence of contemporaneous endogeneity and two-way fixed effects. We use variation across clusters to estimate coefficients with homogeneous slopes (such as time effects) and within-cluster variation to estimate the cluster-specific heterogeneity directly. We then aggregate them to population averages. We demonstrate consistency, showing robustness over standard estimators, and provide analytic standard errors for robust inference. Basic implementation is straightforward using standard software such as Stata. In Monte Carlo simulation, PCIV performs relatively well against pooled 2SLS and fixed-effects IV (FEIV) with a finite number of clusters or finite observations per cluster. We apply PCIV in estimating the price elasticity of gasoline demand using state fuel taxes as instrumental variables. PCIV estimation allows for greater transparency of the underlying data. In our setting, we provide evidence of correlation between heterogeneity in the first and second stages, violating a key assumption underpinning consistency of standard estimators. We see significant divergence in the implicit weighting when applying FEIV from the natural weights applied in PCIV. Overlooking effect heterogeneity with standard estimators is consequential. Our estimated distribution of elasticities reveals significant heterogeneity and meaningful differences in estimated averages.
    Date: 2023–06–15
  37. By: Kaukin Andrei (Gaidar Institute for Economic Policy); Miller Evgenia (RANEPA)
    Abstract: In 2022, The trend component of the industrial production index exhibited growth, which was provided by both the extractive sector and the manufacturing industry. In the first case, owing to high prices and growth of external demand for energy resources. In the second case, due to the production of goods replacing foreign brands, which curtailed their activities on the Russian market after the launch of the SMO, as well as due to the growth of demand for intermediate products for the state defense order. For correct interpretation of the existing trends in separate sectors, it is necessary to decompose their output into components: calendar, seasonal, irregular and trend component;2 the interpretation of the latter is of substantial interest. The Gaidar Institute experts made seasonal adjustment of the series of indices of all the branches of industrial production for 2003—2022 and singled out the trend component3 on the basis of the current statistics published by Rosstat on the indices of production in industrial sectors of the economy.
    Keywords: Russian economy, production, external and internal demand, GDP structure
    JEL: G19 G28
    Date: 2023

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