|
on Energy Economics |
| By: | Megy, C.; Massol, O. |
| Abstract: | Power-to-gas (PtG), a technology that converts electricity into hydrogen, is expected to become a core component of future low-carbon energy systems. While its economics and performance as a sector coupling technique have been well studied in the context of perfectly competitive energy markets, the distortions caused by the presence of large strategic players with a multi-market presence have received little attention. In this paper, we examine them by specifying a partial equilibrium model that provides a stylized representation of the interactions among the natural gas, electricity, and hydrogen markets. Using that model, we compare several possible ownership organizations for PtG to investigate how imperfect competition affects its operations. Evidence gained from these market simulations show that the effects of PtG vary with the multi-market profile of its operator. Producers of fossil-based hydrogen tend to make little use of PtG, whereas renewable power producers use it more to increase the electricity prices. Although PtG operations are profitable and can be welfare-enhancing, the social gain is either very tiny or negative when PtG is strategically operated in conjunction with variable renewable generation. In that case, PtG also raises environmental concerns as it stimulates the use of polluting thermoelectric generation. |
| Keywords: | Power-to-Gas; Sector coupling; Hydrogen; Renewable energy sources; Multi-market oligopoly; Mixed Complementarity Problem |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:cty:dpaper:23/01&r=ene |
| By: | Pessoa, Joao Paulo; Santos, Roberto Amaral; Chimeli, Ariaster |
| Abstract: | Policies to adopt cleaner fuels have become increasingly important, but their impacts on incumbent fuel prices and resulting greenhouse gas emissions are unclear. We use a panel dataset on weekly prices at the gas station level in a large Brazilian state to study how the growth of natural gas, a cheaper and less carbon-intensive alternative to traditional fuels, affected retail prices and profit margins of gasoline and ethanol. Applying an IV strategy, we estimate that prices and margins have fallen. The intensified competition in the fuel market boosted fuel demand, leading to higher emissions of GHGs and other pollutants. |
| Date: | 2023–07–13 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:7tvgy&r=ene |
| By: | Blaber, Richard Michael |
| Abstract: | This paper examines the issue of forecast global energy demand to 2045, on the basis of the expected growth in the global economy, and the consequent demand in that year for fossil fuels, on the basis of the percentage of energy demand being met by them at that time, assuming growth in the supply of renewable energy between now and then, and calculates the amount of carbon dioxide that will be added to the atmosphere by the burning of those fossil fuels in 2045, showing that they render any hope of keeping global warming below the Paris Agreement target of 2°C utterly impossible. |
| Date: | 2023–07–16 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:j5pe6&r=ene |
| By: | Stephen K. Dimnwobi (Nnamdi Azikiwe University, Awka, Nigeria); Kingsley I. Okere (Gregory University, Uturu, Nigeria); Bernard C. Azolibe (Nnamdi Azikiwe University Awka, Nigeria); Kingsley C. Onyenwife (Igbariam, Nigeria) |
| Abstract: | The combination of rising debt levels, poor electricity access, and environmental deterioration could threaten the attainment of the Sustainable Development Goals (SDGs). Hence, this inquiry examined the implications of public borrowing and access to electricity on environmental sustainability (proxied by ecological footprint (ECOL) and carbon dioxide (CO2) emissions) in Sub-Saharan Africa (SSA), largely overlooked in the literature. In addition to pre-estimation, diagnostic and robustness checks utilized in the study, the instrumental variable generalized method of moment (IV-GMM) approach is employed to examine annual data from 39 SSA economies between 2005 and 2018. The key findings indicate that public debt negatively influences environmental sustainability in the region, while access to electricity exerts a positive and significant impact on environmental sustainability. The study provides recommendations for SSA policymakers to significantly reduce pollution and protect the environment which is vital for sustainable development. |
| Keywords: | Environmental sustainability, SSA, Public debt, Electricity access, Ecological Footprint, Carbon Emission |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/043&r=ene |
| By: | Alexander Roth; Dana Kirchem; Carlos Gaete-Morales; Wolf-Peter Schill |
| Abstract: | Heat pumps are a key technology for reducing fossil fuel use in the heating sector. A transition to heat pumps implies an increase in electricity demand, especially in cold winter months. Using an open-source power sector model, we examine the power sector impacts of a massive expansion of decentralized heat pumps in Germany in 2030, combined with buffer heat storage of different sizes. Assuming that the additional electricity used by heat pumps has to be fully covered by renewable energies in a yearly balance, we quantify the required additional investments in renewable energy sources. If wind power expansion potentials are limited, the roll-out of heat pumps can also be accompanied by solar PV with little additional costs, making use of the European interconnection. The need for additional firm capacity and electricity storage generally remains limited even in the case of temporally inflexible heat pumps. We further find that relatively small heat storage capacities of 2 to 6 hours can substantially reduce the need for short- and long-duration electricity storage and other generation capacities, as well as power sector costs. We further show that 5.8 million additional heat pumps save around 120 TWh of natural gas and 24 million tonnes of CO$_2$ emissions per year. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2307.12918&r=ene |
| By: | Amro Elshurafa; Fakhri Hasanov; Lester C. Hunt (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This study assesses the macroeconomic, energy and emissions impacts of solar photovoltaic (PV) deployment in the Kingdom of Saudi Arabia for the period 2021–2030. This is accomplished by linking an energy and environmental sector augmented macroeconometric model with a power model and a distributed generation model. Furthermore, this study distinguishes between the macroeconomic, energy and emissions impacts of PV deployment at the utility and distributed generation scales. To the best of our knowledge, these two aspects make this work novel. We analyze three scenarios: (i) fully government-funded utility-scale PV deployment, (ii) half-government-funded utility-scale PV deployment and (iii) household-funded distributed-generation-scale PV deployment, with some government support alongside a business-as-usual (BaU) scenario.. |
| Keywords: | Agent based modeling, Analytics, Applied resesarch, Autometrics |
| Date: | 2023–06–22 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp10&r=ene |
| By: | Yermone Sargsyan (Charles University, Institute of Economic Studies, Faculty of Social Sciences, Prague, Czech Republic); Salim Turdaliev (Charles University, Institute of Economic Studies, Faculty of Social Sciences, Prague, Czech Republic); Silvester van Koten (UJEP, Faculty of Social and Economic Studies, Usti nad Labem & CERGE-EI Prague, Czech Republic) |
| Abstract: | This study investigates the effectiveness of "nudges" through monthly peer comparison reports on household energy consumption in Yerevan, Armenia. We collected data from 300 households for a total of 8 months. While monthly peer comparison reports show no significant effect on energy consumption, we find strong and statistically significant heterogeneous treatment effects. Specifically, we find that households utilizing electricity as their primary heating source, households where the respondent is an educated female, and households with respondents aged 56 and above experienced a decrease in electricity usage as a result of the peer comparison reports. Moreover, we discover that high electricity consumers reduce their consumption significantly after receiving the reports. However, we also observe a small "boomerang" effect, whereby households in the lower quartile of electricity consumption slightly increase their usage in response to the reports. Furthermore, we find that the bulk of the reduction in electricity consumption comes from daytime consumption when the marginal cost of electricity is higher. Additionally, we explore the heterogeneous treatment effects of nudges on the investment in the physical stock of appliances. |
| Keywords: | demand side management, nudges, household energy consumption, peer comparison, developing country, heterogeneous treatment effects, electrical appliances |
| JEL: | Q4 Q53 Q48 Q58 C93 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2023_23&r=ene |
| By: | Erich Muehlegger; David Rapson |
| Abstract: | A number of policy proposals call for replacing fossil fuels in the name of decarbonization, but these fuels will be difficult to replace due to their as-yet unrivaled bundle of attributes: abundance, ubiquity, energy density, transportability and cost. There is a growing commitment to electrification as the dominant decarbonization pathway for transportation. While deep electrification is promising for road vehicles in wealthy countries, it will face steep obstacles. In other sectors and in the developing world, it’s not even in pole position. Global transportation decarbonization will require decoupling emissions from economic growth, and decoupling emissions from growth will require not only new technologies, but cooperation in governance. The menu of policy options is replete with tradeoffs, particularly as the primacy of energy security and reliability (over emissions abatement) has once again been demonstrated in Europe and elsewhere. |
| Keywords: | climate policy; energy transition; transportation |
| JEL: | P18 Q42 Q48 |
| Date: | 2023–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:96516&r=ene |
| By: | Andres Felipe Guzman; Juan Nicolas Guzman; Abdulrahman Alwosheel (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Despite the fast global expansion of the aviation industry, due to its sustainability issues, the industry’s concerns about energy efficiency and emissions are still very important. Studying the changing energy consumption patterns in Saudi Arabia is crucial, as the country is expected to see significant changes in the coming years with new infrastructure, an increase in tourism, and new airlines. |
| Keywords: | Aviation Oil Consumption, Aviation Oil Demand, Crude Oil, Diesel |
| Date: | 2023–07–25 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp16&r=ene |
| By: | Döttling, Robin; Rola-Janicka, Magdalena |
| Abstract: | We analyze jointly optimal carbon pricing and financial policies under financial constraints and endogenous climate-related transition and physical risks. The socially optimal emissions tax may be above or below a Pigouvian benchmark, depending on whether physical climate risks have a substantial impact on collateral values. We derive necessary conditions for emissions taxes alone to implement a constrained-efficient allocation, and show a cap-and-trade system or green subsidies may dominate emissions taxes because they can be designed to have a less adverse effect on financial constraints. Additionally introducing leverage regulation can be welfare-improving if environmental policies have a direct negative effect on financial constraints. Furthermore, our analysis highlights the positive effect of carbon price hedging markets on equilibrium environmental policies. |
| Date: | 2023–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:ds7bx&r=ene |
| By: | Philippe Loyson; Rianne Luijendijk; Sweder van Wijnbergen |
| Abstract: | We assess whether climate transition risk is priced in Europe’s equity market by analysing relative equity returns of high versus low CO2-emitting firms. We use a panel data set covering firmspecific carbon emissions of 1555 European companies over the period 2005-2019. We add to the existing literature by addressing problems in carbon data and by using various econometric methods ranging from panel data analysis to synthetic control methods. Fama-French style panel regressions at both the individual firm level as well as portfolio level suggest that carbon intensity is negatively related to stock returns. Treatment effect models, however, provide some evidence for increased pricing of climate transition risk after the Paris Agreement. |
| Keywords: | Climate Change; Carbon Emissions Intensity; Paris Agreement; Transition Risk Premia |
| JEL: | G12 Q54 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:788&r=ene |
| By: | Andreas Kammerlander (Department of International Economic Policy, University of Freiburg) |
| Abstract: | I examine the association between nighttime light luminosity and ten pollution measures (CO2, CO, NOx, SO2, NMVOC, NH3, BC, OC, PM10 and PM2.5) across dierent political regimes at a local level. Although the eects of the political system and economic growth on pollution have been widely analyzed at the country level, this is the rst study to do so at the grid level. The empirical analysis yields three major insights. First, economic growth is positively associated with a wide array of dierent pollution measures. Second, there are signicant dierences in the association between economic growth and air pollution across dierent political regimes. For example, the association between nighttime light luminosity and air pollution is strictly positive for autocracies. The association between nighttime luminosity and air pollution is substantially smaller but still positive for democracies. Furthermore, among democracies the relationship between nighttime light luminosity and air pollution is concave for nine out of ten pollutants; among autocracies, the relationship is either convex (ve out of ten pollutants) or the squared term is insignicant. Third, the dierences among political regimes is driven chiey by pollution emissions in the industry, energy, and transport sectors; there is no dierence between autocracies and democracies in terms of the eect of growth on emissions in the agricultural and residential sectors. |
| Keywords: | local economic growth, air pollution, nighttime lights, geo-data |
| JEL: | O18 Q53 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:fre:wpaper:43&r=ene |
| By: | Kim, Gyupan (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kang, Gusang (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Choi, Wonseok (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Oh, Taehyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Hyun Jean (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Oh , Jonghyuk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Jungeun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 본 연구는 EU, 미국, 중국, 일본 등 세계 주요국 및 주요 지역의 그린성장전략을 개관하고, 핵심정책이라 할 수 있는 에너지전환(재생에너지·차세대 원자력 및 수소에너지), 녹색금융, 탄소가격제에 대한 주요국의 정책 및 제도 운용을 분석하였다. 분석결과를 바탕으로 에너지전환과 녹색금융, 탄소가격제 등 주요국과의 분야별 협력방향과 더불어 우리나라의 제도 운용 개선방향을 제시하였다. This research analyzes the green growth strategies in major countries and regions including the EU, the US, China, and Japan with a focus on key policies such as energy transition(renewable energy, next-generation nuclear power, and hydrogen energy), green finance, and carbon pricing. This study begins by providing an overview of the major policy areas of green growth strategy in each major countries/region. Chapter 2, titled, “Green Growth Strategies in Major Countries: A General Overview” covers this topic. In Chapter 3, titled “Energy Transition (1): Renewable Energy and Next-generation Nuclear Power, ” examines renewable energy policies and the development of next-generation nuclear technology in major countries. It discusses topics such as the European Commission’s Renewable Energy Directive(RED), Japan’s introduction of the Feed-in Premium(FIP) system through the revision of the Renewable Energy Special Measures Act (April 2022), major renewable energy policies and the state and local government-led renewable energy storage projects in the US, and the operation of the Feed-in-Tariff(FIT) system in China. The research also explores the technology and policies of the next generation nuclear energy, with a focus on the development of Small Modular Reactors(SMR). Chapter 4, titled “Energy Transition (2): Hydrogen Energy, ” delves into the hydrogen strategies of the EU, Germany, Japan, and China. It provides an overview of the hydrogen demonstration project known as “Mission Innovation(MI), ” a group composed of government agencies from 22 major countries. The research also analyzes major countries’ international competitiveness in hydrogen technology by classifying hydrogen technologies into four types(gray hydrogen, blue hydrogen, turquoise hydrogen, and green hydrogen) and comparing the dependency and technological influence of each hydrogen technology based on a newly constructed index of backward and forward citations for patents from each country and institution.(the rest omitted) |
| Keywords: | Focusing on economic growth; environmental policies; carbon neutrality and green growth strategies of major countries; EU; USA; China; and Japan |
| Date: | 2022–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kieppa:2022_007&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: | Climate change; Electricity generation; Energy demand; Modelling |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:iwt:conppr:h051892&r=ene |
| By: | Bacchetta, Marc; Bekkers, Eddy; Solleder, Jean-Marc; Tresa, Enxhi |
| Abstract: | We combine econometric estimation with quantitative modelling to generate projections on the trade, GDP, and emissions effects of a potential trade liberalization agreement in energy related environmental goods (EREGs) and environmentally preferable products (EPPs). Trade liberalization can contribute to reduced emissions in two ways in our projections: (i) a reduction of import prices of goods promoting energy efficiency; (ii) a reduction in the costs of intermediate and capital goods used in the production of electricity from renewable sources. We evaluate four scenarios combining reductions in tariffs and non-tariff measures (NTMs) of EREGs and EPPs. Using simulations with the WTO Global Trade Model findings show (i) an increase in exports of EREGs and EPPs both at the global level and in most regions; (ii) a modest increase in GDP in all regions because of falling tariffs, NTMs, and increased energy efficiency; (iii) a modest reduction in global emissions of about 0.6%. The dominant channel is energy efficiency whereas the costs of EREGs as intermediates in renewable energy production play a minor role, with or without end use control. |
| Keywords: | Environmental Goods (EGs), Trade Liberalization, Emissions, Energy efficiency |
| JEL: | F14 F13 F17 F18 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:ersd202305&r=ene |
| By: | Philippe Loyson (VU Amsterdam); Rianne Luijendijk (DNB); Sweder van Wijnbergen (University of Amsterdam) |
| Abstract: | We assess whether climate transition risk is priced in Europe’s equity market by analysing relative equity returns of high versus low CO2-emitting firms. We use a panel data set covering firm-specific carbon emissions of 1, 555 European companies over the period 2005-2019. We add to the existing literature by addressing problems in carbon data and by using various econometric methods ranging from panel data analysis to the SCM. Fama-French style panel regressions at both the individual firm level as well as portfolio level suggest that carbon intensity is negatively related to stock returns. Treatment effect models, however, provide some evidence for increased pricing of climate transition risk after the Paris Agreement. |
| Keywords: | Climate Change, Carbon Emissions Intensity, Paris Agreement, Transition Risk Premia. |
| JEL: | G12 Q54 |
| Date: | 2023–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20230042&r=ene |
| By: | Antoine Fontaine (EVS - Environnement, Ville, Société - ENS de Lyon - École normale supérieure de Lyon - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris] - UL2 - Université Lumière - Lyon 2 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - UJM - Université Jean Monnet - Saint-Étienne - ENTPE - École Nationale des Travaux Publics de l'État - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique); Laurence Rocher (EVS - Environnement, Ville, Société - ENS de Lyon - École normale supérieure de Lyon - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris] - UL2 - Université Lumière - Lyon 2 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - UJM - Université Jean Monnet - Saint-Étienne - ENTPE - École Nationale des Travaux Publics de l'État - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The sharp increase in and volatility of fossil fuel prices, due in particular to the Russian–Ukrainian conflict, is a powerful incentive for cities to accelerate their energy transition. Yet urban authorities have limited power over the construction of energy policies and the management of networks, and they remain dependent on remote and mainly carbon-intensive imported sources of energy. The recovery of waste heat from waste incineration or industrial emissions and its use in heating networks represents a solution for cities to control part of their energy supply, to develop their own capacities for action and to implement local transition strategies, in addition to the development of renewable energies. Based on the analysis of four case studies in France between 2019 and 2022, in the context preceding the current energy crisis, this article examines how cities are trying to develop waste heat recovery and the role this energy resource plays in the decarbonisation of urban energy systems. The analysis highlights that the emergence of these projects is more broadly part of the renegotiation dynamics of energy, ecological and economic relationships between cities and industries, and that their implementation results in the construction of new urban energy nexuses. The use of waste heat makes it possible to improve the energy efficiency of industrial and urban energy systems, sometimes significantly, but it must be seen as a transitional solution because it can temporarily increase cities' dependency on high-carbon and energy-inefficient industrial activities. |
| Keywords: | Urban nexus, Waste heat, Energy transition, Infrastructure, Public policy |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04156338&r=ene |
| By: | Jeyhun Mikayilov; Abdulelah Darandary (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This paper utilizes a structural time series approach to model Saudi Arabia’s regional electricity demand, capturing undetected forces of variability in the data-generating process that include improvements in technology, energy-saving behavior, and other underlying trends that are excluded under conventional estimation methods. National models of aggregate electricity consumption might not be representative, as electricity prices are administered regionally and Saudi Arabia’s regions have unique social and economic characteristics. We find evidence that the regions have unique responses to prices and income levels with regard to electricity demand. Additionally, we use our estimated model to project the regional baseline demand for electricity for Saudi Arabia and create a scenario to demonstrate how a price increase would impact these regions differently. This information is valuable for policymakers in Saudi Arabia, as the fuel mix to generate electricity differs between regions. Our baseline electricity demand projections indicate that under the assumptions of moderate economic growth and no price changes, total electricity demand in Saudi Arabia will reach 366 TWh by 2030. |
| Date: | 2023–07–05 |
| URL: | http://d.repec.org/n?u=RePEc:prc:mpaper:ks--2023-mp01&r=ene |
| By: | Rickels, Wilfried; Meier, Felix; Quaas, Martin |
| Abstract: | Past CO 2 emissions have been causing social costs and continue to reduce wealth in the future. Countries differ considerably in their amounts and time profiles of past CO 2 emissions. Here we calibrate an integrated assessment model on past economic and climate development to estimate the historical time series of social costs of carbon and to assess how much individual countries have reduced global wealth by their fossil and industrial-process CO 2 emissions from 1950 to 2018. Historical social costs of carbon quantify the long-lasting wealth reduction by past CO 2 emissions, which we term ‘climate wealth borrowing’, as economic output has been generated at the expense of future climate damages. We find that the United States and China have been responsible for the largest shares of global climate wealth borrowing since 1950, while the per-capita pattern is quite different. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkie:273658&r=ene |
| By: | Armin Pourkhanali; Peyman Khezr; Rabindra Nepal; Tooraj Jamasb |
| Abstract: | Fuel price caps are one of the potential regulatory tools for controlling wholesale electricity prices when fuel prices are volatile. In this paper, we introduce a theoretical model to study the effects of such caps on firms’ bidding behavior and clearing prices in spot market auctions. We then use data from the Australian National Electricity Market (NEM), which recently implemented such caps, to empirically test and compare their effectiveness in three different states. Our theoretical findings suggest that fuel price caps can be binding, especially when electricity demand is lower and competition among generators is higher. When demand is high, alternative policy tools, such as market price caps, may be more effective in controlling auction prices. Our empirical analysis employs various techniques, such as Generalized Additive Models (GAM) and machine learning algorithms, to test the effectiveness of price caps in the NEM. We find mixed results regarding the effectiveness of fuel price caps in different states. Specifically, fuel price caps reduced wholesale electricity prices in Queensland and New South Wales, while they were not effective in controlling wholesale prices in Victoria. |
| Keywords: | electricity markets, price caps, fuel price |
| JEL: | L94 L51 D4 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-39&r=ene |
| By: | Geden, Oliver; Knopf, Brigitte; Schenuit, Felix |
| Abstract: | Following the conclusion of the 'Fit for 55' package, European Union (EU) climate policy will enter its next phase. One of the most important decisions will be how to set the economy-wide emissions reduction target for 2040, which will form the starting point for the next round of revisions of all EU climate policy legislation. The European Climate Law stipulates that the European Commission shall propose a 2040 target that is based, among other things, on a "projected indicative Union greenhouse gas budget for the 2030-2050 period", informed by a report of the newly established European Scientific Advisory Board on Climate Change. While cumulating emissions resulting from different future trajectories can help to assess ambition levels, strictly deriving a 'science-based' EU emissions budget from the global carbon budget has several pitfalls. The debate on the design of EU climate policy after 2030 should not put too much focus on the 'appropriate' target for 2040 but on how to further develop the governance architecture, strengthen policy instruments, and bolster public support. |
| Keywords: | EU emissions budget approach, EU climate policy, "Fit for 55" package, European Scientific Advisory Board on Climate Change, Paris Agreement, United Nations Framework Convention on Climate Change (UNFCCC) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:342023&r=ene |
| By: | Brucal, Arlan; Tarui, Nori |
| Abstract: | Revenue decoupling (RD) is a regulatory mechanism that allows adjustments of retail electricity rates for the regulated utility to recover its required revenue despite fluctuations in its sales volume. The U.S. utility data in 2000–2019 reveals that RD is associated with about a 4-percentage point higher growth rate of residential electricity prices within the first year after RD is implemented relative to carefully matched non-decoupled utilities with similar pre-RD sales trends. Theoretically, unexpected sales declines would lead to higher electricity prices while unexpected sales increases would lead to lower prices. While RD adjustments have reportedly yielded both refunds and surcharges, our analysis indicates that electricity prices demonstrate downward rigidity and statistically significant upward adjustments for the utilities subject to RD. The asymmetric movement in retail prices may be associated with the political economy underlying the adoption and the implementation of RD. |
| Keywords: | electricity sector; revenue decoupling; utility regulation |
| JEL: | L94 Q41 Q48 |
| Date: | 2021–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:111535&r=ene |
| By: | Guo, Liwen (University of New South Wales); Cheng, Zhiming (University of New South Wales); Tani, Massimiliano (University of New South Wales); Cook, Sarah (University of Nottingham) |
| Abstract: | With air pollution remaining a significant problem in many regions globally, an increasing number of environmentally conscious entrepreneurs have been taking initiatives to combat this issue, accompanied by a growing environmental awareness among the general public. To test the strength of this relationship, we use individual-level information from an enterprise survey in China in 2018 and conducted instrumental variable analyses to study the impact of air pollution on the green innovation behaviours of non-agricultural entrepreneurs. The results indicate that, on average, a one standard deviation increase in PM2.5 concentration is associated with a 4.3 percentage points increase in green innovation (or a 11.9 percentage points increase in green innovation intensity). Entrepreneurs' gambling preferences could potentially mediate the relationship between air pollution and green innovation, while expected firm income and actual firm income may act as suppressors. Specifically, entrepreneurs who launch their businesses following the implementation of environmental policies are more likely to adopt green innovation practices. This study provides insight into why there is a growing trend of environmentally-conscious entrepreneurs in regions with high levels of air pollution. |
| Keywords: | green innovation, air pollution, China |
| JEL: | J01 Q53 Q55 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16321&r=ene |
| By: | Sandrine Michel (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Alexis Vessat (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier) |
| Abstract: | In sub-Saharan Africa (SSA), the energy access gap between urban and rural populations remains considerable, even among households and businesses with potential access to the grid. As the interface between electricity generation conditions, the end user and public energy-access policy, tariff structures are the major instrument of access. This article evaluates how electricity tariff structures contribute to the continued existence of the energy access gap and looks at whether this gap is primarily between rural and urban populations. Using a dynamic panel model with random effects (1990-2012; 33 countries divided into 4 groups; 17 variables related to residential and non-residential consumption, production and share of income spent on electricity), the article shows the systematically regressive effect of electricity pricing on access to both residential and non-residential consumption. We find that electricity pricing fails to provide reduced rates that enable access to the poor, neglects households that have passed the threshold of the first consumption block and is ineffective at addressing energy poverty in both urban and rural households. For households to access a centralised power grid, we find that the criterion of location is less important than the economic conditions of the customers served. |
| Keywords: | Power tariff structures, Electricity access, Urban on-grid access, Rural on-grid access, Rural electrification, Sub-saharan africa, JEL Q48, JEL I38, JEL N17, JEL O11 |
| Date: | 2023–07–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04158100&r=ene |
| By: | David S. Rapson; Erich Muehlegger |
| Abstract: | A number of policy proposals call for replacing fossil fuels in the name of decarbonization, but these fuels will be difficult to replace due to to their as-yet unrivaled bundle of attributes: abundance, ubiquity, energy density, transportability and cost. There is a growing commitment to electrification as the dominant decarbonization pathway for transportation. While deep electrification is promising for road vehicles in wealthy countries, it will face steep obstacles. In other sectors and in the developing world, it’s not even in pole position. Global transportation decarbonization will require decoupling emissions from economic growth, and decoupling emissions from growth will require not only new technologies, but cooperation in governance. The menu of policy options is replete with tradeoffs, particularly as the primacy of energy security and reliability (over emissions abatement) has once again been demonstrated in Europe and elsewhere. |
| JEL: | Q5 R40 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31513&r=ene |
| By: | Chenyan Lyu; Hung Xuan Do; Rabindra Nepal; Tooraj Jamasb |
| Abstract: | This paper investigates price volatility and spillover effects in the Nordic electricity wholesale markets, comprising Sweden, Finland, Denmark, and Norway. Utilizing both the Time-Varying Parameter Vector Autoregressive (TVP-VAR) and Rolling Window-based VAR (RW-VAR) approaches, we analyze the integration dynamics among these regional markets and the impact of carbon prices on volatility spillovers. The study employs a rich dataset of 107, 352 hourly prices spanning from January 2010 to March 2022. The novelty of this research is three-fold. Firstly, we adopt a connectedness approach to explore volatility interactions among the four Nordic markets, contributing to the scarce literature on volatility in this market. Secondly, we segment the Norwegian market into southern and northern regions, revealing differences in volatility spillover patterns. Lastly, we investigate the influence of carbon prices on volatility spillovers, shedding light on its role in market dynamics. We find significant connectedness between the Nordic markets, with an average volatility Total Connectedness Index of 52.4% and 50.9%. Sweden emerges as the sole net volatility spillover transmitter, while Denmark experiences the largest shocks from the system. We further find that carbon prices exert a 5% significant impact on the volatility spillover index, as estimated by the 200-days rolling window VAR. |
| Keywords: | Electricity Markets, Price Volatility, Nord Pool, Carbon Market, Renewable Energy |
| JEL: | D0 D5 L1 L9 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-36&r=ene |
| By: | Geir B. Asheim; Rintaro Yamaguchi |
| Abstract: | We consider the question of how to integrate carbon emissions in comprehensive national accounts for the purpose of indicating whether countries’ development is sustainable. We derive an expression for national saving which includes not only the national effect of current global emissions, but also the future expected paths of emissions nationally and in the rest of the world. We illustrate how the use of our expression for national saving alters the empirical conclusions concerning the sustainability of countries, as compared to the World Bank estimates. Our calculations account for the fact that future prospects of developing countries are more affected by the global carbon emissions than they themselves affect others by their own low per capita emissions. They are thus deemed less sustainable when using our indicator. This information suggests shifting the burden of climate policies away from such countries. |
| Keywords: | climate change, comprehensive national accounting, carbon emissions |
| JEL: | C43 D63 O47 Q01 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10562&r=ene |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Vietnam is at a critical juncture in its energy transition. While robust economic growth drives electricity demand, sustainability concerns necessitate a shift to renewable sources. International cooperation can provide vital support through knowledge, technology and finance. However, funding proposals like the Just Energy Transition Partnership (JETP) require balanced evaluation. Transition policies must also incorporate multifaceted notions of justice and adaptively blend planning with market forces. Seizing opportunities while overcoming hurdles demands policy innovation, stakeholder inclusion and evidence-based analysis. With creativity, pragmatism and social responsibility, Vietnam can pioneer an equitable transition that meets development needs cost-effectively. I present an integrated perspective across technical, financial, political and social dimensions, and welcome expert input on charting an optimal pathway during this pivotal moment. |
| Date: | 2023–07–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04162361&r=ene |
| By: | Stewart, Susan |
| Abstract: | Climate policy in the European Union (EU) and Germany changed significantly with the adoption of net-zero emissions targets. A key new development is the growing importance of carbon management. The umbrella term includes not only the capture and storage of CO2 (carbon capture and storage, CCS), but also CO2 capture and utilisation (carbon capture and utilisation, CCU) as well as the removal of CO2 from the atmosphere (carbon dioxide removal, CDR). It is important to provide clarity when differentiating between these approaches and identifying their relation to so-called residual emissions and hard-to-abate emissions. This is particularly important because it will determine the overall ambition of climate policy as well as shape future policy designs and their distributional impacts. Current policy and legislative processes should ensure that carbon management does not delay the phase-out of fossil fuels. New policy initiatives present an opportunity to actively shape the interface between ambitious climate and industrial policy.The "Zeitenwende" in international politics implies a need to improve strategic thinking and better prepare for future challenges. Germany is already doing so by drafting strategic documents on national security and relations with China. With respect to Russia, a similar approach suggests itself. First, because Russia's aggression against Ukraine has significantly worsened the situation in Europe and beyond for the foreseeable future. Second, because the conception of a Russia policy based on the principles declared since 2022 offers an opportunity to correct previous mistakes and transform measures that have emerged from a crisis situation into long-term policy. |
| Keywords: | "Zeitenwende", Germany's Russia policy, NATO, Ukraine, European Union (EU), USA, China, "Expanding Cooperation with Civil Society in the Eastern Partnership Countries and Russia" (ÖPR), energy policy |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:302023&r=ene |
| By: | Christiane Baumeister |
| Abstract: | The COVID-19 pandemic as well as the Russian invasion of Ukraine have had profound effects on the global energy landscape, with some of the longer-lasting effects still unfolding. This paper discusses how these events have reshaped the supply side of the global oil market by focusing on structural changes in each of the three main oil-producing countries. The demand side has responded to geopolitical developments by devising a set of policy tools to stabilize oil markets and counter inflationary pressures. In particular, the price cap policy was introduced to supplement the EU embargo on seaborne Russian oil exports, and record volumes of oil were released from government-controlled emergency stockpiles. The sources of oil price fluctuations associated with these events are also discussed, as is their role in the recent surge of inflation, with a particular focus on the heterogeneity in the pass-through of oil supply shocks within the Euro area. |
| JEL: | E31 E58 Q41 Q43 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31496&r=ene |
| By: | Juan, Aranzazu de; Poncela, Maria Pilar; Ruiz Ortega, Esther |
| Abstract: | Carbon dioxide (CO2) emissions, largely by-products of energy consumption, account for the largest share of greenhouse gases (GHG). The addition of GHG to the atmosphere disturbs the earth's radiative balance, leading to an increase in the earth's surface temperature and to related effects on climate, sea level rise, ocean acidification and world agriculture, among other effects. Forecasting and designing policies to curb CO2 emissions globally is gaining interest. In this paper, we look at the relationship between CO2 emissions and economic activity using Spanish data from 1964 to 2020. We consider a structural (contemporaneous) equation between selected indicators of economic activity and CO2 emissions, that we further augment with dynamic common factors extracted from a large macroeconomic database. We show that the way the common factors are extracted is crucial to exploit their information content. In particular, when using standard methods to extract the common factors from large data sets, once private consumption and maritime transportation are considered, the information contained in the macroeconomic data set has only negligible explanatory power for emissions. However, if we extract the common factors oriented towards CO2 emissions, they add valuable information not contained in the individual economic indicators. |
| Keywords: | Co2 Emissions; Dynamic Factor Models; Macroeconomic Activity; Oriented Factors; Time Series; Variable Selection |
| Date: | 2023–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:cte:wsrepe:37975&r=ene |
| By: | Sanguinetti, Angela |
| Abstract: | Gig drivers who use their own vehicles to provide transportation and food delivery services face barriers to electric vehicle (EV) adoption including costs, access, and information. To move toward a sustainable transportation future, California is advancing regulations to accelerate electrification of high-mileage vehicles, such as those driven by gig workers for transportation network companies (TNCs) like Uber and Lyft. By 2030, the state istargeting 90% of passenger miles traveled on TNCs to be fueled by electricity. To support this objective, UC Davis researchers developed an online tool to help gig drivers understand their potential cost savings from EVs. This research brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, automobile ownership, costs, electric vehicle charging, electric vehicles, estimating, income, ridesourcing |
| Date: | 2023–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7rd1c2jg&r=ene |
| By: | Jeyhun Mikayilov; Abdulelah Darandary (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | One of the key benefits of understanding regional electricity consumption and its response to policy changes is enhancing the decision-making process. In Saudi Arabia, energy policies are set at the national level, and assessing their impacts at the regional level provides valuable insights for assessing the impact of previous and future policies. The regions of Saudi Arabia have unique social and economic characteristics (Mikayilov et al. 2020b) and are expected to react differently to changing policies. |
| Date: | 2023–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp05&r=ene |
| By: | Leon Bremer (Vrije Universiteit Amsterdam); Sacha J. den Nijs (Vrije Universiteit Amsterdam); Henri L.F. de Groot (Vrije Universiteit Amsterdam) |
| Abstract: | This study investigates the energy efficiency (EE) gap, referring to private agents who are not making seemingly profitable investments to reduce energy use. We deploy a questionnaire among firms in the Netherlands in which we ask them about investment behavior and barriers to investing in EE. A set of 16 barriers is constructed based on the literature. We find that most firms (70%) have made EE investments in the past five years, and that the median firm has saved 10% of its energy use. The remaining profitable EE investment opportunities still leave room for another 15% of energy savings at the median firm. We find that uncertainty about future policies ranks as the leading barrier to EE investments, followed by lock-ins in current equipment, and energy price uncertainty. Especially energy-intensive firms indicate the importance of policy uncertainty. Past policies have not been successful in addressing these barriers. Additionally, we find that a firm’s network can be an important channel for obtaining EE investment knowledge. Classification-JEL: C83, D22, O33, Q40. |
| Keywords: | energy efficiency gap, barriers, investment behavior, technology adoption, policy uncertainty |
| Date: | 2023–07–24 |
| URL: | http://d.repec.org/n?u=RePEc:tin:wpaper:20230043&r=ene |
| By: | Guo, Liwen (University of New South Wales); Cheng, Zhiming (University of New South Wales); Tani, Massimiliano (University of New South Wales); Cook, Sarah (University of Nottingham) |
| Abstract: | Utilizing a nationally representative panel data of middle-aged and elder individuals from China, we assess the health impact of environmental policies, with special attention paid to gender disparities within their effects. This study utilizes thermal inversions to address the endogeneity of air pollution and constructs a fixed effects model. Our findings highlight that the negative impact of air pollution on female health is significant, particularly for females in the middle of the health distribution. Notably, the implementation of environmental policies leads to health improvements in females and plays a key role in bridging the health gap between genders. These findings provide compelling evidence of the importance of environmental policy in promoting health equity. |
| Keywords: | environmental policy, gender health gap, China |
| JEL: | C21 I14 J71 Q53 Q58 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16320&r=ene |
| By: | Lutz Sager |
| Abstract: | Air pollution generates substantial health damages and economic costs worldwide. Pollution exposure varies greatly, both between countries and within them. However, the degree of air quality inequality and its' trajectory over time have not been quantified at a global level. Here I use economic inequality indices to measure global inequality in exposure to ambient fine particles with 2.5 microns or less in diameter (PM2.5). I find high and rising levels of global air quality inequality. The global PM2.5 Gini Index increased from 0.32 in 2000 to 0.36 in 2020, exceeding levels of income inequality in many countries. Air quality inequality is mostly driven by differences between countries and less so by variation within them, as decomposition analysis shows. A large share of people facing the highest levels of PM2.5 exposure are concentrated in only a few countries. The findings suggest that research and policy efforts that focus only on differences within countries are overlooking an important global dimension of environmental justice. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2307.15669&r=ene |
| By: | Rabindra Nepal; Rohan Best; Madeline Taylor |
| Abstract: | This paper assesses ethnic differences for four energy outcomes using a survey of 6, 000 households in Nepal. These four outcomes are avoiding open wick lamps, having a solar lighting system, living in a neighbourhood with street lighting, and having a connection to the national grid. We find large differences across ethnic groups, with the Madhesi group having distinct energy outcomes, for each of the four dimensions. However, progressively more detailed locational variables explain much of the difference. Our interactive analysis then suggests that some of the remaining variation is explained by socioeconomic variables of having a financial account, school attendance, or membership of a women’s group. However, ethnic inequality for the most place-based outcome, of living in an area with street lighting, is not reduced by education or women’s group membership. Our results therefore suggest that ethnic inequality in place-based energy outcomes may not be addressed by policies promoting education and community group participation. Policies to increase the proportions of households with access to financial accounts may have broader effectiveness in reducing ethnic energy inequality across many energy dimensions. |
| Keywords: | ethnicity, financial account, grid, open wick lamp, solar lighting system, street light |
| JEL: | D14 O13 Q40 Q53 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-35&r=ene |
| By: | Cheng, Zhiming (University of New South Wales); Guo, Liwen (University of New South Wales); Tani, Massimiliano (University of New South Wales); Cook, Sarah (University of Nottingham) |
| Abstract: | Our study focuses on exploring the impact of air pollution on household investment in children's education in China. Air pollution poses a significant risk to some cities in northern China. We have used panel data from secondary schools in Shandong Province in 2017 and 2020 and discovered that a rise of one standard deviation of PM2.5 leads to a 9.6-44.6 percentage point decrease in the likelihood of parents spending on their children's education. The impact of air pollution on household education investment is mediated by parents' and children's educational expectations and household incomes. Our findings also indicate that high school students are more likely to receive higher education investment than middle school students, even at the same level of air pollution. The results of our study suggest that air pollution can lead to a decrease in human capital accumulation due to changes in parental behaviors induced by air pollution. |
| Keywords: | air pollution, education investment, China |
| JEL: | Q53 I20 D10 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16322&r=ene |
| By: | Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic & Department of Banking and Insurance, Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic); Barbora Schererova (Faculty of Finance and Accounting, Prague University of Economics and Business, Czech Republic); Jan Sila (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); David Zilberman (Department of Agricultural and Resource Economics, Rausser College of Natural Resources, University of California, Berkeley, USA) |
| Abstract: | We analyze the relationships within the liquid fuels system and its associated supply chain using innovative network filtering methods, namely the Minimum Spanning Tree and Triangulated Maximally Filtered Graph. Our findings reveal that biofuels form robust connections with their feedstocks that intensify during periods of economic or legislative uncertainty. Conversely, fossil fuels form detached clusters primarily influenced by global economic conditions. These insights significantly enhance our understanding of the liquid fuels market dynamics and suggest potential avenues for integrating additional liquid fuels into the supply chain network. |
| Keywords: | fossil fuels, biofuels, crude oil, complex network analysis, community detection, triangulated maximally filtered graph, minimum spanning tree, relationship analysis |
| JEL: | C38 Q41 Q55 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2023_22&r=ene |
| By: | Lutz Kilian |
| Abstract: | It is common in applied work to estimate responses of macroeconomic aggregates to news shocks derived from surprise changes in daily futures prices around the date of policy announcements. This requires mapping the daily surprises into a monthly shock that may be used as an external instrument in a monthly VAR model or local projection. The standard approach has been to sum these daily surprises over the course of a given month when constructing the monthly proxy variable, ignoring the accounting relationship between daily and average monthly price data. In this paper, I provide a new approach to constructing monthly proxies from daily surprises that takes account of this link and revisit the question of how to use OPEC announcements to identify news shocks in VAR models of the global oil market. The proposed approach calls into question the interpretation of the identified shock as oil supply news and implies quantitatively and qualitatively different estimates of the macroeconomic impact of OPEC announcements. |
| Keywords: | Proxy VAR; instrumental variables; shock aggregation; time aggregation; identification; OPEC; supply news; storage demand; oil futures; oil price expectations |
| JEL: | C36 C51 E31 E32 E44 Q43 |
| Date: | 2023–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:96517&r=ene |
| By: | Oleg Alekseev (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Karel Janda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic & Department of Banking and Insurance, Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic); Mathieu Petit (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); David Zilberman (Department of Agricultural and Resource Economics, Rausser College of Natural Resources, University of California, Berkeley, USA) |
| Abstract: | This paper investigates the impact of volatility in the upstream electric vehicles (EV) battery raw materials market on the downstream stock returns of individual EV producers. The study uses the daily stock returns of two lithium producers and the newly proposed EGARCH-EARJI model to capture the jump component of volatility in the EV battery raw materials market. The effect on individual stock returns of EV producers is studied via the adjusted Fama-French model with the jump factor. The results indicate that jumps exist in the EV battery raw materials market and ripple through stock returns of EV producers, having a stronger effect on those specializing in EVs solely. |
| Keywords: | EVs, volatility, jump intensity, jump size, ARJI, EGARCH-EARJI |
| JEL: | C22 G14 L61 L62 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2023_21&r=ene |
| By: | Francesco D'Ercole (LUM University); Alexander F. Wagner (University of Zurich ; Swiss Finance Institute; CEPR; and ECGI) |
| Abstract: | In prior financial and economic crises such as the Global Financial Crisis and COVID-19, environmentally responsible stocks performed well or at least neutrally. Were they also resilient as another banking crisis began unfolding with the collapse of Silicon Valley Bank (SVB) and Signature Bank? Or did they suffer because of the important role that these and other regional banks play for the clean tech sector? We find that stocks with more opportunities in the transition to a low-carbon economy performed worse in the 2023 crisis. Investors favored firms with low debt. Overall, the market appears to anticipate that the (regional) banking sector stress will curtail climate tech development. |
| Keywords: | Bank failure, Clean tech, ESG, Event study, Financial crisis, Silicon Valley Bank |
| JEL: | G12 G30 Q57 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2358&r=ene |
| By: | Gabriel CLAUTIAUX; Grégoire LENA; Christian De GROMMARD; Baptiste COMPAGNON |
| Abstract: | Widely used in the water sector, which is also unprofitable in contexts similar to those prevailing in regions not yet electrified, the Public Service Delegation (PSD) offers a solid regulatory and financial framework that balances Government needs on one side, and greater visibility for private sector operators on the other. It can be applied to all three electrification modes: grid extension, mini-grids, stand-alone PV systems, and is designed to be financially viable. |
| Keywords: | Afrique |
| JEL: | Q |
| Date: | 2023–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en15792&r=ene |
| By: | Thibault Isambourg (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique, TRANSDEV - parent); Emmanuelle Lacan (Département de la gironde) |
| Abstract: | Rising several issues, home-to-school mobility provides an international literature from various fields. Medical disciplines warn of decline in active travelling as a major public health problem. Social sciences study this mobility in the light of the substantial pollutant emission it generates, the role it plays in the children's quality of life and its influence on their behaviour as adults. Nevertheless, the French literature's exploration of the subject remains timid. Relying on a survey conducted in Gironde, a French department, we propose a modelling and an analysis of greenhouse gases emitted by these trips. Three factors emerge: density, gender, and communal standard of living, even after econometric control. The discussion ended by pointing out the benefits of a policy to tackle social and gender-based inequalities in mobility by promoting active transportation. |
| Abstract: | Par ses multiples enjeux, la mobilité scolaire quotidienne fournit une littérature internationale issue de champs divers. Les disciplines médicales alertent du déclin des modes actifs comme un problème majeur de santé publique. Les sciences sociales étudient cette mobilité à l'instar des émissions polluantes substantielles qui en sont dégagées, de la place qu'elle tient dans la qualité de vie des enfants et son influence sur les comportements qu'ils auront étant adultes. Nonobstant, l'exploration du sujet par la littérature française reste timide. À l'appui d'une enquête menée dans le Département de la Gironde, nous calculons et analysons les gaz à effet de serre rejetés par ces déplacements. Trois facteurs explicatifs ressortent : la densité, le genre et le niveau de vie, cela même après l'exercice de contrôle économétrique. Le propos est clôturé en pointant l'intérêt et les pistes d'actions d'une politique de lutte contre les inégalités sociales et genrées de mobilité par la promotion des modes actifs |
| Keywords: | Modal behaviour, Greenhouse gases GHG, sociospatial inequalities, Youth, Home-to-school mobility, Comportements modaux, CO2, Gaz à effet de serre (GES), Inégalités sociospatiales, Jeunes, Mobilité scolaire |
| Date: | 2023–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04145598&r=ene |
| 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 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04157581&r=ene |
| By: | Bresson, Georges (University of Paris 2); Etienne, Jean-Michel (Université Paris-Sud); Lacroix, Guy (Université Laval) |
| Abstract: | Excessive nighttime light is known to have detrimental effects on health and on the environment (fauna and flora). The paper investigates the link between nighttime light pollution and economic growth, air pollution, and urban density. We propose a county model of consumption which accounts for spatial interactions. The model naturally leads to a dynamic general nesting spatial model with unknown common factors. The model is estimated with data for 3071 continental US counties from 2012–2019 using a quasi-maximum likelihood estimator. Short run and long run county marginal effects emphasize the importance of spillover effects on radiance levels. Counties with high levels of radiance are less sensitive to additional growth than low-level counties. This has implications for policies that have been proposed to curtail nighttime light pollution. |
| Keywords: | nighttime light pollution, air pollution, GDP, satellite data, space-time panel data model |
| JEL: | C23 Q53 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16342&r=ene |
| By: | Shaheen, Susan PhD; Cohen, Adam; Broader, Jacquelyn |
| Abstract: | Curb space has been traditionally designed for private vehicle parking, public transit, and passenger and commercial loading. However, in recent years, a growing number of newservices and activities have increased the demand for limited curb space, including passenger pick-up and drop-off; last-mile delivery (e.g., courier network services, personal delivery devices); electric vehicle (EV) charging; micromobility parking and use (e.g., personally owned and shared bikes and scooters); and carsharing services. The curb serves a variety of functions such as vehicle and device storage (including personally owned and shared vehicles and devices), outdoor dining and retail, greenspace, and other uses. These changes are contributing to a notable shift in how people access and use the curb, and how public agencies plan, prioritize, and manage curbside interactions. |
| Keywords: | Engineering |
| Date: | 2023–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt30m9m61b&r=ene |
| By: | Marcos Escobar-Anel; Yiyao Jiao |
| Abstract: | This paper proposes an expected multivariate utility analysis for ESG investors in which green stocks, brown stocks, and a market index are modeled in a one-factor, CAPM-type structure. This setting allows investors to accommodate their preferences for green investments according to proper risk aversion levels. We find closed-form solutions for optimal allocations, wealth and value functions. As by-products, we first demonstrate that investors do not need to reduce their pecuniary satisfaction in order to increase green investments. Secondly, we propose a parameterization to capture investors' preferences for green assets over brown or market assets, independent of performance. The paper uses the RepRisk Rating of U.S. stocks from 2010 to 2020 to select companies that are representative of various ESG ratings. Our empirical analysis reveals drastic increases in wealth allocation toward high-rated ESG stocks for ESG-sensitive investors; this holds even as the overall level of pecuniary satisfaction is kept unchanged. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2307.12161&r=ene |
| By: | Rafael Wildauer; Karsten Kohler; Adam Aboobaker; Alexander Guschanski |
| Abstract: | The paper presents a model of conflict inflation to investigate the distributional effects of energy price shocks. We argue that periods of high inflation are always periods of significant redistribution of income. We analyse how such redistribution occurs along two dimensions: between workers and firms and between sectors of the economy. To study the distributional outcomes of the recent inflationary episode, we build a three-sector model comprising a domestic energy sector which provides inputs for a goods and a services sector. The model is calibrated to US sectoral data with the Method of Simulated Moments. While energy prices are set internationally, non-energy prices and nominal wages are set by firms and workers, giving rise to conflicting claims over the distribution of income. We consider three shocks that trigger inflationary distributional conflict: an energy price shock combined with demand and supply shocks to the goods sector. We find that the recent inflationary episode constitutes a price-wage rather than a wage-price spiral. The combined shocks induce non-energy firms to raise prices, which undermines real wages, and redistributes income towards firms. The sectoral demand shift towards goods in combination with pandemic-related supply bottlenecks further raises mark-ups, accelerating inflation and leading to divergence in sectoral profit margins. We compare three anti-inflationary policies: redistributing windfall profits to workers, nominal wage restraint, and aggregate demand contraction through monetary or fiscal policy. The redistribution of profits via a windfall tax is most effective in reducing inflation without reinforcing reductions in employment and labour shares. |
| Keywords: | energy price shocks, inflation, income distribution, multi-sector model, wageprice spiral, price-wage spiral |
| JEL: | E24 E31 J30 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2309&r=ene |
| By: | Saulich, Christina |
| Abstract: | The German government intends to establish standards for responsible sourcing of metals, and laid out its objectives in a position paper in January 2023 ("Paths to sustainable and resilient raw material supplies"). German firms source much of the metals they use through traders, exchanges and over-the-counter markets. These tend to be located outside the European Union in countries whose regulations on corporate due diligence are weaker than the EU's. Given the central role of commodity traders and exchanges in securing the supply of metals and enforcing sustainability standards in metal supply chains, the German government should ensure that its implementation of its position paper devotes commensurate attention to the commodity trade. Robust supply chain legislation at the EU level, also covering the financial sector, will permit Germany to exert indirect influence on commodity traders, exchanges and over-the-counter markets. |
| Keywords: | due diligence obligations, metal supply chains, sustainability standards, European Union, green transformation, digital transformation, commodity traders, OECD, Extractive Industries Transparency Initiative (EITI) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:322023&r=ene |
| By: | Gabriel CLAUTIAUX; Grégoire LENA; Christian De GROMMARD; Baptiste COMPAGNON |
| Abstract: | Largement utilisée dans le secteur de l’eau, lui aussi non rentable dans des contextes similaires à ceux des régions non encore électrifiées, la délégation de service public (DSP) offre un cadre réglementaire et financier solide permettant de concilier les exigences des États et le besoin de visibilité nécessaire pour l’engagement du secteur privé. Déclinable pour les trois modes d’électrification (extension du réseau national, mini-réseaux et systèmes PV autonomes), elle est conçue pour s’inscrire dans la durée. |
| Keywords: | Afrique |
| JEL: | Q |
| Date: | 2023–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:fr15792&r=ene |
| By: | Delphine Lahet (BSE - Bordeaux Sciences Economiques - UB - Université de Bordeaux - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | investissement, finance, Fonds monétaire international (FMI), transition écologique, obligations, pays en développement |
| Date: | 2023–04–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04157612&r=ene |
| By: | Maxime L. D. Nicolas; Adrien Desroziers; Fabio Caccioli; Tomaso Aste |
| Abstract: | We investigate the response of shareholders to Environmental, Social, and Governance-related reputational risk (ESG-risk), focusing exclusively on the impact of social media. Using a dataset of 114 million tweets about firms listed on the S&P100 index between 2016 and 2022, we extract conversations discussing ESG matters. In an event study design, we define events as unusual spikes in message posting activity linked to ESG-risk, and we then examine the corresponding changes in the returns of related assets. By focusing on social media, we gain insight into public opinion and investor sentiment, an aspect not captured through ESG controversies news alone. To the best of our knowledge, our approach is the first to distinctly separate the reputational impact on social media from the physical costs associated with negative ESG controversy news. Our results show that the occurrence of an ESG-risk event leads to a statistically significant average reduction of 0.29% in abnormal returns. Furthermore, our study suggests this effect is predominantly driven by Social and Governance categories, along with the "Environmental Opportunities" subcategory. Our research highlights the considerable impact of social media on financial markets, particularly in shaping shareholders' perception of ESG reputation. We formulate several policy implications based on our findings. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2307.11571&r=ene |