nep-ene New Economics Papers
on Energy Economics
Issue of 2023‒11‒06
forty-four papers chosen by
Roger Fouquet, National University of Singapore

  1. Mineral Wealth and Offshore Accounts: Evidence from the Panama Papers By Subramaniam, Archana
  2. Benefit of Hindsight: Did the 2015 Oil Price Shock and Policy Response Play Any Role in Household Food Insecurity in Nigeria? By Justin Quinton; Glenn P. Jenkins; Godwin Olasehinde-Williams
  3. Fueling Financial Stability: The Financial Impact of U.S. Renewable Fuel Standard By Karel Janda; Jan Sila; David Zilberman
  4. Seizing sustainable growth opportunities from tidal stream energy in the UK By Pia Andres; Ralf Martin; Esin Serin; Arjun Shah; Anna Valero
  5. Carbon Taxes: Many Strengths but Key Weaknesses By Roger H. Gordon
  6. Uncertainty and Climate Change: The IPCC approach vs Decision Theory By Anastasios Xepapadeas
  7. Divestment and Engagement: The Effect of Green Investors on Corporate Carbon Emissions By Kahn, Matthew E.; Matsusaka, John G.; Shu, Chong
  8. A multiproduct gasoline supply chain with product standardization and postponement strategy. By Rafael Bernardo Carmona Benitez; Hector
  9. Disentangling Small-Scale Solar Photovoltaic Adoption: A Spatial Analysis of Decision Factors and Localized Interactions in Germany By Tobias Stein; Lisa Sieger; Christoph Weber
  10. From broadband deployment to climate action: Key considerations in the development of climate policies across OECD countries By Palmer, Sarah Kate; Rowsell, Joe; Schmidt, Stephen
  11. Market-Based Approaches to Achieve Australia’s Emissions Reduction Targets By McFadzean-Lodge, Liam
  12. Vehicle Choice Modeling for Light-, Medium-, and Heavy-Duty Zero-Emission Vehicles in California By Burke, Andrew; Zhao, Jingyuan; Miller, Marshall; Fulton, Lewis
  13. The Impact of the Energy Conservation Law on Enterprise Energy Efficiency: Quasi-Experimental Evidence from Chinese Firms By Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le
  14. Oil price shocks and energy transition in Africa By Tii N. Nchofoung
  15. Securing future-fit jobs in the green transformation: A policy framework for industrial policy By Hafele, Jakob; Le Lannou, Laure-Alizée; Rochowicz, Nils; Kuhls, Sonia; Gräbner-Radkowitsch, Claudius
  16. Impact of Economic Uncertainty, Geopolitical Risk, Pandemic, Financial & Macroeconomic Factors on Crude Oil Returns -- An Empirical Investigation By Sarit Maitra
  17. The Labor Market Worsening Effects of a Resource Bust: Evidence from the Crude Oil Price Shock in Ecuador By Parra-Cely, Sergio; Zanoni, Wladimir
  18. The impact of spectrum policy on carbon emissions By Zagdanski, Jakub; Castells, Pau
  19. People can understand IPCC visuals and are not influenced by colors By Battocletti, Vittoria; Romano, Alessandro; Sotis, Chiara
  20. Investigating Inefficiencies in the German Rental Housing Market: The Impact of Disclosing Total Costs on Energy Efficiency Appreciation By Lisa Sieger
  21. The Environmental Cost of Easy Credit: The Housing Channel By Manuel Adelino; David T. Robinson
  22. IPCC - Nachdenkliches zur Klimaökonomik By Pies, Ingo
  23. Learning from experts: Energy efficiency in residential buildings By Billio, Monica; Casarin, Roberto; Costola, Michele; Veggente, Veronica
  24. INDONESIA’S CLIMATE POLICY By Popova, Irina (Попова, Ирина)
  25. Greenhouse Gas Emissions Associated with Argentina's Exports: A Decomposition Exercise By Jalile, Ileana Raquel; Moncarz, Pedro E.
  26. Consequences of economic inequality of countries dependent on oil exports By Shapor, Maria (Шапор, Мария)
  27. Green macrofinancial regimes By Gabor, Daniela; Braun, Benjamin
  28. Do shared E-bikes reduce urban carbon emissions? By Li, Qiumeng; Fuerst, Franz; Luca, Davide
  29. Towards A Just Coal Transition Labor Market Challenges And People’s Perspectives From Wielkopolska By Christiaensen, Luc; Ferré, Céline; Honorati, Maddalena; Gajderowicz, Tomasz Janusz; Wrona, Sylwia Michalina
  30. Preferred design elements of the energy transition: From the perspective of households By Breitschopf, Barbara; Büttner, Isabelle; Burghard, Uta
  31. Review on Decarbonizing the Transportation Sector in China: Overview, Analysis, and Perspectives By Jiewei Li; Ling Jin; Han Deng; Lin Yang
  32. Do Wind Turbines Have Adverse Health Impacts? By Krekel, Christian; Rode, Johannes; Roth, Alexander
  33. Exposure or Income? The Unequal Effects of Pollution on Daily Labor Supply By Hoffmann, Bridget; Rud, Juan Pablo
  34. CO2-Bepreisung in Deutschland: Kenntnisstand privater Haushalte im Jahr 2022 By Eßer, Jana; Frondel, Manuel; Sommer, Stephan; Wittmann, Julia
  35. How Much Will It Cost to Achieve the Climate Goals in Latin America and the Caribbean? By Galindo Paliza, Luis Miguel; Hoffmann, Bridget; Vogt-Schilb, Adrien
  36. Institutions, Comparative Advantage, and the Environment By Joseph S. Shapiro
  37. Increasing inequality between countries in key renewable energy costs By Barbrook-Johnson, Peter; Tankwa, Brendon
  38. Empowering Electricity Consumers through Demand Response Approach: Why and How By Weiss, Mariana; Chueca, J. Enrique; Jacob, Jorge; Gonçalves, Felipe; Azevedo, Marina; Gouvêa, Adriana; Ravillard, Pauline; Carvalho Metanias Hallack, Michelle
  39. Climate change and carbon policy: A story of optimal green macroprudential and capital flow management By Le, Anh H.
  40. The Political Economy of Commitment to Policies By Josse Delfgaauw; Otto H. Swank
  41. From Wells to Wealth? Government Transfers and Human Capital By Acuna, Julio; Balza, Lenin; Gómez Parra, Nicolás
  42. New Challenges for the Russian Energy Industry By Potashnikov, Vladimir (Поташников, Владимир); Levakov, Pavel (Леваков, Павел)
  43. 'Shop Until You Drop': the Unexpected Effects of Anti-consumerism and Environmentalism By Giovanni Maccarrone; Marco A. Marini; Ornella Tarola
  44. Kingfisher’s GHG emission reduction plan By Vuong, Quan-Hoang

  1. By: Subramaniam, Archana (Monash University)
    Abstract: This paper studies the effect of mineral price shocks on the probability of offshore incorporations in tax-havens. Since offshore accounts are widely tied to rent-seeking and corruption in the natural resource sector, we use these observed effects to gain insight into patterns of rent-seeking in mineral dependent countries. We construct a novel dataset that combines monthly data on the incorporation of offshore accounts from the Panama Papers with information about a country’s mineral endowments and monthly world mineral prices. Using a fixed-effects linear probability model, we find that that a large price increase has a positive effect on probability of offshore incorporations in subsequent months, in mineral dependent countries. This effect is stronger in countries with weak institutional quality and higher levels of foreign ownership of mines. We deviate from previous work through our focus on the effects of mineral rents rather than petroleum rents and through our introduction of ownership structure as a key variable of importance.
    Keywords: Resource curse ; Mining ; Offshore entities ; Panama papers ; Corruption. JEL classifications: D72 ; D73 ; O13 ; Q32 ; Q33
    Date: 2023
  2. By: Justin Quinton (Department of Economics, Queens University, Kingston, Ontario, Canada); Glenn P. Jenkins (Department of Economics, Queens University, Kingston, Ontario, Canada and Cyprus International University, North Cyprus); Godwin Olasehinde-Williams (Department of Management Information Systems Istanbul Ticaret University, Turkey)
    Abstract: In this paper, the determinants of household food insecurity and the impact of the 2015 oil price shock in Nigeria are investigated using panel data from three waves (2012, 2015 and 2018) of the General Household Survey. This survey is a nationally representative sample of approximately 5, 000 households that have been surveyed six times across the three waves. It is found that despite the decline in real food prices globally, Nigeria experienced a marked rise in food insecurity, from approximately 26% of households in 2012/2015 to 43.7% in 2018. The precipitous decline in oil prices in 2015 led to a devaluation of the Nigerian naira which in turn increased the price of imported goods. Nigeria had become more reliant on imported food between 2004 and 2015 as foreign exchange became readily available and the appreciated naira at that time made imported food relatively cheap. Although oil prices crashed in 2015, the full effect was not felt until 2018. Had the Nigerian government been prepared to act quickly, a substantial amount of the effect of the food crisis could have been avoided. The total value of food imports is found to decline overall. From the regression analysis on food insecurity status, a novel result emerges concerning the impact of gender of the head of the household. Previous studies report that female head of household is a key determinant of household food insecurity; however, once single parent status, household size and the proportion of children in the household are accounted for, the gender of the head of the household becomes inconsequential. Thus, it is the composition of the household that is relevant for food insecurity rather than just the gender of the head of the household.
    Keywords: Food insecurity, GHS-P, Nigeria, Oil price shock, Policy.
    JEL: D10 E2 Q17
    Date: 2023–10–23
  3. By: Karel Janda (Faculty of Finance and Accounting, Prague University of Economics and Business, Prague, Czech Republic & Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, 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, University of California, Berkeley, CA)
    Abstract: Oil price shocks, which materialize in petrol prices, put severe inflationary pressures on countries that rely largely on fossil fuels, causing financial instability. The Renewable Fuel Standard (RFS) program, implemented in the USA in 2005, sanctions blending corn-based ethanol with fuel and can offset oil price shocks. RFS is a technological innovation that protects against inflationary pressures while being ecologically beneficial. We examine how global oil price changes affect US petrol costs and the resulting savings for US families by assessing the program´s effectiveness. Our findings show that blending ethanol into petrol serves as a buffer against global oil price shocks, delivering an average $0.185 per gallon savings from 2019 to 2022. This translates to $22.8 billion in annual savings for American consumers. As the global debate shifts towards sustainable energy and climate change mitigation, our findings highlight the practical benefits of diversifying energy sources, which promote both environmental sustainability and economic stability in the face of volatile commodity price shocks.
    Keywords: Financial stability, Commodities, Energy markets, Technological Innovation, Ethanol, U.S.A.
    JEL: C22 E63 Q42 Q41
    Date: 2023–02
  4. By: Pia Andres; Ralf Martin; Esin Serin; Arjun Shah; Anna Valero
    Abstract: This is the decade for managing the immense risks of climate change, and delivery on net zero. That means rapidly increasing the share of renewable sources in our energy mix alongside a step-change in energy and resource efficiency. Energy transitions will look different in different parts of the world and will be most sustainable if countries leverage the unique opportunities offered by their local geographies to cut emissions as quickly as possible. As an island nation, the UK has a uniquely rich marine energy resource. Using this resource is an opportunity the UK cannot afford to miss as it works to fulfil its own target of net zero as well as its international commitments under the Paris Agreement. This report adds to a growing evidence base concluding that tidal stream energy presents a clear sustainable growth opportunity for the UK due to the net zero, energy security and regional growth benefits it offers. Given its predictability, tidal stream energy offers important complementarities with other renewable sources of generation and in turn, the potential to improve the overall resilience of the energy system. The report also showcases the UK's innovative specialisms in tidal stream technologies, pointing out an opportunity for the UK to export its expertise in the future to many other countries around the world that have the potential to deploy tidal stream energy - if it acts quickly to establish a strong domestic sector.
    Keywords: Green Growth, growth, policy, net zero, Technological change, employment, Economic geography, UK Economy
    Date: 2023–06–22
  5. By: Roger H. Gordon
    Abstract: There is a consensus among economists that a carbon tax is the best approach for addressing the effects of CO2 emissions on the global climate. However, past international agreements on climate change instead specify caps on emissions (a quantity target) for each country. This paper explores several advantages of such use of quantity targets. For one, if a country were to impose a carbon tax at a rate high enough to correct for global externalities, this rate would far exceed the rate in that country’s own self-interest. The result is an incentive to make use of other domestic government policies to encourage greater emissions, undercutting the intended abatement under a carbon tax. A quantity target instead by construction caps emissions. Second, the paper argues that a quantity target can better insure that global warming remains below two degrees Celsius, given the uncertainties faced regarding the response to any given carbon tax rate. Third, the set of quantity targets set for each country can more flexibly be adjusted to ensure that most countries benefit from participating in a global accord, while still allowing efficient patterns of abatement by giving countries credit for cross-border abatement efforts.
    JEL: H20 H22 H3 Q54
    Date: 2023–10
  6. By: Anastasios Xepapadeas
    Abstract: One of the most important challenges in the study of climate change and its interactions with the economy is uncertainty. The present paper looks at this uncertainty from two different points of view. The first is the way that IPCC deals with uncertainty at its report and the way that uncertainty is communicated. The IPCC approach is implemented by a combination of qualitative and qualitative methods and the use of heuristics. IPCC studies climate change its evolution and its impact in a context, which in terms of decision making approach is akin to analysis under risk. The second is the point of view of the part of decision theory that deals with uncertainty in the Knightian sense and more specially with uncertainty which is manifested in multiple probabilistic models or priors. The presence of multiple priors is associated with ambiguity aversion and misspecification concerns that necessitate the use of maxmin optimizing approaches. The IPCC and the decision theory approaches are briefly reviewed and compared seeking ways to accommodate the concept of risky parameters or impacts of the IPCC framework, to the framework of optimization under uncertainty under multiple probabilistic models.
    Keywords: Climate change, IPCC, risk, uncertainty, misspecification, ambiguity aversion
    JEL: Q54 D81
    Date: 2023–08–24
  7. By: Kahn, Matthew E. (University of Southern California); Matsusaka, John G. (University of Southern California); Shu, Chong (University of Utah)
    Abstract: This paper studies whether green investors can influence corporate greenhouse gas emissions through capital markets, either by divesting their stock and limiting polluters' access to capital, or holding polluters' stock and engaging with management. We focus on public pension funds, classifying them as green or non-green based on which political party controlled the fund. To isolate the causal effects of green ownership, we use exogenous variation caused by state-level politics that shifted control of the funds and portfolio rebalancing in response to returns on non-equity investment. Our main finding is that companies reduced their greenhouse gas emissions when stock ownership by green funds increased and did not alter their emissions when ownership by non-green funds changed. We find evidence that ownership and constructive engagement was more effective than confrontational tactics such as voting or shareholder proposals. We do not find that companies with green investors were more likely to sell off their polluting facilities (greenwashing). Overall, our findings suggest that (a) corporate managers respond to the environmental preferences of their investors; (b) divestment in polluting companies may be counterproductive, leading to greater emissions; and (c) private markets may be able to address environmental challenges without explicit government regulation.
    Keywords: corporate decarbonization, divestment, engagement, investors
    JEL: G11 Q54
    Date: 2023–10
  8. By: Rafael Bernardo Carmona Benitez (Universidad Anahuac Mexico (Mexico)); Hector (Universidad Anahuac Mexico (Mexico))
    Abstract: The development of the global economy is highly dependent on energy (Chen & Wu, 2017). The energy sector is formed by the fossil fuel industries, the electric power industry, the nuclear power industry, and the renewable energy industry. The oil industry is one of the fossil fuel industries with fast growth, 40.5% from 1980 to 2016 (OPEC, 2017). This growth is due to the globalisation of the oil industry (Sahebi, Nickel, & Ashayeri, 2014) that has generated millions of jobs, developed infrastructure, and enhanced economies through a global supply chain. Hence, the study of oil supply chain and its derivatives is of the great importance for the development of the economy of any country in the world, and its study is a main interest for oil companies that must develop strategies to achieve advantages against their competitors (Sahebi, Nickel, & Ashayeri, 2014) mainly by developing supply chain strategies to maximize efficiencies (Chima, 2007) and minimize the costs of production and supply of finished products to consumers (Lisita, Levina, & Lepekhin, 2019). Knowing the importance of the energy sector to the economy, in 2013, Mexico enacted an energy constitutional reform that changes, between other things, the supply chain of gasoline obligating Pemex (Mexican state-owned company) to share its pipelines and storage terminals (located at ports, refineries and/or distribution centers) with other oil companies. The main goal of the supply chain of gasoline proposed in the reform is to lower gasoline prices to consumers by enhancing competition and finishing Pemex monopoly. However, in this paper, we analyze the viability of the supply chain of gasoline proposed in this reform, and we find that a supply chain problem is created when multiple oil companies share pipelines and storage terminals to simultaneously distribute different types of gasoline as the reform dictates, because costs increase due to the production of interfaces created each time two different types of gasoline are sequentially shipped through the same pipeline (Fig 1) (an interface is a blend of gasoline called “transmix gasoline†or “mid-grade gasoline" produced and distributed, at the end of each batch, through the same pipeline because of the consecutive distribution of gasoline in a process called batching (Wang et al., 2008)). Therefore, the aim and main contribution of this paper is to design and optimize a supply chain of gasoline that allows multiple oil companies share pipelines and storage terminals to simultaneously distribute different types of gasoline at minimum cost.
    Keywords: gasoline, supply chain
    Date: 2023–02
  9. By: Tobias Stein; Lisa Sieger; Christoph Weber (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen)
    Abstract: The existence of spatial patterns in the adoption of small-scale solar photovoltaic (PV) systems is widely accepted in the academic literature. The diffusion of these systems depends on decisions of heterogenous units, often households, that form their decision based on unit characteristics and attitudes, the built environment, economic and physical factors, as well as peer effects. When including several of these factors, many studies use macro-level datasets, which have a limited ability to capture ‘real’ small-scale spatial patterns. Using data on a 1 km² grid level for Germany, we identify spatial patterns of adoption while also controlling for highly localized explanatory variables. Spatial dependence is estimated and tested with spatial econometric models. Using this set of small-scale data, we show that spatial clustering affects the adoption of residential PV systems, which is increasing with larger neighborhood sizes. Further, the presence of large-scale PV installations has strong direct and also indirect, i.e., spillover effects on the adoption of rooftop PV installations. Finally, spillover effects from defined neighborhoods are found to become statistically insignificant with larger distances, promoting the use of such small-scale data.
    Keywords: Solar PV adoption, Spatial econometrics, Adoption behavior, Energy transition
    JEL: C31 Q28 Q55 R12
    Date: 2023–10
  10. By: Palmer, Sarah Kate; Rowsell, Joe; Schmidt, Stephen
    Abstract: This research paper examines an underexplored facet of climate change mitigation - digital climate policies. Despite empirical evidence demonstrating the potential of broadband networks to substantially reduce greenhouse gas emissions (GHGe), these networks are conspicuously absent from the climate policies of G7 countries. To address this critical omission, the paper investigates three key areas: the countries and sectors with the greatest potential for adopting digital climate policies; the effectiveness of digital climate policies in reducing GHGe under various economic and social conditions; and the barriers hindering the development of such policies. Utilizing a mixed-methods approach, the study aims to provide a comprehensive understanding of the role digital climate policy can play in climate change mitigation, fostering an international community of practice and offering robust data for further empirical research. The findings of this paper hold significant implications for the design and implementation of climate policies in advanced economies.
    Keywords: Telecommunications, Broadband, 5G networks, 5G solutions, digitization, telecommunications policy, climate change, digital policy, climate change policy
    Date: 2023
  11. By: McFadzean-Lodge, Liam (Monash University)
    Abstract: With Australia recently legislating a 2030 emissions reduction target, market-based approaches (such as carbon pricing) should be considered as a policy approach to achieve these reductions at least cost to the economy. This paper begins by delving into the economic theory behind carbon pricing and why it is considered the least cost emissions reduction method, then synthesises the literature on the outcomes of carbon pricing implemented in other jurisdictions to inform a potential Australian policy. This paper then explores market-based approaches in the Australian context by analysing Australia’s previous attempt to implement carbon pricing. Empirical analysis in the paper demonstrates what level of emissions reductions can be expected for different levels of carbon tax, for instance, a carbon tax of AUD$112/tCO2 would reduce emissions by 41.18% from 2005 levels by 2030 (Australia's target is 43%). These findings inform policymakers determining the best policy mix to achieve emissions reduction targets, and what level of reductions should come from a carbon price compared to other policy measures. This paper also highlights the importance of accompanying carbon pricing with policies addressing the inequality effects to increase the longevity of the policy and to avoid mistakes of previous failed attempts to implement carbon pricing.
    Keywords: climate change ; energy demand ; government policy JEL classifications: Q41 ; Q48 ; Q54
    Date: 2023
  12. By: Burke, Andrew; Zhao, Jingyuan; Miller, Marshall; Fulton, Lewis
    Keywords: Engineering, Social and Behavioral Sciences
    Date: 2023–10–20
  13. By: Yu, Hongwei; Chen, Wenjin; Wang, Xinyi; Delina, Laurence; Cheng, Zhiming; Zhang, Le
    Abstract: We employ a regression discontinuity design (RDD) to investigate the causal effect of China's Energy Conservation Law (ECL) on the energy efficiency of Chinese firms. Using data from the 2018 China Employer-Employee Survey (CEES), we find that the energy regulation has a positive impact on enterprise energy efficiency. Furthermore, we observe that the effects of the regulation vary across industries, ownership types, and firm ages. We also find that energy management system (EnMS) and technological innovation are mechanisms through which the energy regulation helps improve enterprise energy efficiency. These findings underscore the importance of well-designed and effectively implemented energy regulations in fostering energy efficiency and reducing carbon emissions in the industrial sector. They also highlight the need to consider the heterogeneity of the regulatory impact when designing energy-saving policies.
    Keywords: Energy Conservation Law, energy regulation, energy efficiency, China, regression discontinuity design
    JEL: K32 Q56 Q58
    Date: 2023
  14. By: Tii N. Nchofoung (University of Dschang, Cameroon)
    Abstract: When commodity prices rise in international markets, Africa's economic performance scarcely improves, and when commodity prices fall, its economic performance suffers substantially. This study examines the effect of oil price shocks on Africa’s energy transition (ET). Data is obtained for 53 African countries between 2000 and 2020, with the Driscoll and Kraay and Panel VAR regression procedures used. The results reveal that oil price shocks have an adverse influence on Africa's ET, with the findings being strong in both rural and urban contexts. Furthermore, the results expose that the adverse effect is visible only in net crude oil exporting countries, whereas net oil importing countries have no significant effect. Moreover, oil price shocks cannot explain Africa's urban-rural differences in clean energy access. As policy implications, African policymakers should reduce the rural-urban gap in clean energy by investing more in clean energy and technologies in rural areas, which help enhance the resilience of the energy sector to oil price shocks.
    Keywords: Crude oil price shocks, energy transition; Panel VAR, Africa
    Date: 2023–01
  15. By: Hafele, Jakob; Le Lannou, Laure-Alizée; Rochowicz, Nils; Kuhls, Sonia; Gräbner-Radkowitsch, Claudius
    Abstract: Achieving compatibility between economies and planetary boundaries poses a momentous challenge. It requires a fundamental restructuring of current industrial systems, with a dual focus on the creation and protection of green technologies and firms, as well as the redirection of workers and technologies from ecologically harmful activities to support sustainable production patterns. This paper acknowledges that during the process of green industrial restructuring, certain non-future fit sectors will inevitably decline due to regulatory requirements or reduced competitiveness. Allowing market forces to solely determine the decline of these sectors would result in extensive economic and social consequences. Instead, this paper advocates for the implementation of active industrial policies to facilitate the phasing out of non-future-fit sectors and to ensure a just transition for the workers affected. To this end, the paper introduces a data-driven political framework with two objectives: 1) identify emission-intensive sectors with limited potential to stay competitive (non-future-fit sectors) and 2) identify sectors capable of absorbing workers from declining sectors while presenting better economic potential (complementary future-fit sectors). Despite the data limitations, applying this framework in Germany and Hungary reveals two significant challenges. First, the results indicate a limited number of skill-related sectors able to absorb workers from declining industries, highlighting the reluctance of workers to adapt to the changing landscape due to the costs associated with retraining and relocation. Second, a market-driven approach to the green transformation is likely to result in gradual shifts, requiring ongoing worker retraining as other problematic sectors decline. These preliminary findings underscore the need to anticipate these challenges and prioritise worker retraining and skill development, particularly in cases where there are limited complementary future-fit sectors.
    Keywords: Green Transformation, Industrial Policy, Competitiveness, Emission Intensity, Economic Complexit
    Date: 2023
  16. By: Sarit Maitra
    Abstract: This study aims to use simultaneous quantile regression (SQR) to examine the impact of macroeconomic and financial uncertainty including global pandemic, geopolitical risk on the futures returns of crude oil (ROC). The data for this study is sourced from the FRED (Federal Reserve Economic Database) economic dataset; the importance of the factors have been validated by using variation inflation factor (VIF) and principal component analysis (PCA). To fully understand the combined effect of these factors on WTI, study includes interaction terms in the multi-factor model. Empirical results suggest that changes in ROC can have varying impacts depending on the specific period and market conditions. The results can be used for informed investment decisions and to construct portfolios that are well-balanced in terms of risk and return. Structural breaks, such as changes in global economic conditions or shifts in demand for crude oil, can cause return on crude oil to be sensitive to changes in different time periods. The unique aspect ness of this study also lies in its inclusion of explanatory factors related to the pandemic, geopolitical risk, and inflation.
    Date: 2023–10
  17. By: Parra-Cely, Sergio; Zanoni, Wladimir
    Abstract: To assess the effects of an oil price bust on individual labor market outcomes, we leverage the 2015 exogenous decline in international oil prices with geographical variation in oil-dependency in Ecuador. To account for propagation mechanisms, we also test the causal effect of the oil price bust on public transfers to local autonomous governments. Reduced form results suggest a moderate oil price pass-through channel on wages and nonlabor earnings but not on labor supply and participation. Public transfers play an amplification role, as a one percentage point decrease in these funds implies workers in oil-dependent areas to experience a wage reduction of 1.5%. Spillover effects to nonextractive industries, with reduced economic activity at the firm level, seem to be the transmission channels explaining the drop in individual earnings during the oil price bust.
    Keywords: Resource bust;wages;public transfers;Ecuador;Extractivas;transformación productiva;región andina;Andean Region
    JEL: J21 J22 J30 H41 H72 I31
    Date: 2022–06
  18. By: Zagdanski, Jakub; Castells, Pau
    Abstract: By assigning rights and conditions of use, spectrum policy regulates how radio frequencies can be used by mobile networks. We develop a parameterised calculator tool to estimate the impact of various spectrum policy aspects on the emissions of the mobile sector. We model the impacts during the main phase of 5G rollout (2022-2031) in representative medium-sized low-income and high-income countries. (population: 80 million). We find that the carbon footprint of the mobile sector can increase between 1% (up to 0.4 MtCO2e) as a result of fragmented 5G spectrum, and up to 9% ( up to 2.6 MtCO2e) as a result of a two year-delay to 5G assignment Importantly, we find that the potential impact on the emissions of other sectors and households as a result of lower adoption of emission-saving use cases could be many times greater. A two-year delay to assignment of 5G spectrum could lead to emissions in other sectors and households increasing by up to 37 MtCO2e.
    Keywords: Radio spectrum, spectrum policy, emissions, climate change
    JEL: Q54 Q58 D44
    Date: 2023
  19. By: Battocletti, Vittoria; Romano, Alessandro; Sotis, Chiara
    Keywords: climate change; IPCC report; climate visuals; colors; framing; visuals; carbon tax; REF fund
    JEL: J1
    Date: 2023–09–20
  20. By: Lisa Sieger (Chair for Management Sciences and Energy Economics, University of Duisburg-Essen)
    Abstract: Energy efficiency and renewable energy are key pillars of the energy transition that is high on the political agenda of governments in face of the climate crisis. Germany, however, is underperforming in its emissions reduction goals. There is still room for improvement, especially in the building sector – but this is often associated with high upfront investments. There is evidence that the market for energy efficiency in the German rental housing market is inefficient, resulting in underinvestment. To investigate these inefficiencies, this study estimates a hedonic pricing model combined with a total-cost-of-use perspective based on the observation of warm rents for a sample of 3, 903, 473 rental offers from 2014 to 2021. In a “perfect world†, the effect of the energy performance score given in energy performance certificates as an indicator of energy consumption or demand, respectively, is expected to be zero, as corresponding costs are already included in the warm rent. If the coefficient is significantly different from zero, it can be interpreted as measure for inefficiencies. The study further investigates whether disclosing heating costs in real estate advertisements could lead to a better appreciation of energy efficiency in the rental market and thus contribute to closing the information gap. Results show that the market for energy efficiency is indeed inefficient; however, the disclosure of full information can help to overcome these inefficiencies. These results lead to several important policy implications.
    Keywords: energy efficiency, rental housing market, information asymmetry, hedonic pricing
    JEL: C31 Q40 R21 R31
    Date: 2023–10
  21. By: Manuel Adelino; David T. Robinson
    Abstract: Heating, cooling, and powering the residential housing stock accounts for about one-fifth of total annual greenhouse gas emissions in the US. Home size is a key determinant of energy intensity. The average newly built single-family home is 50% larger than in the 1950s. Using distinct identification strategies spanning the last four decades of banking history, we show that more abundant credit increases average new home size. It also facilitates more construction but does not produce offsetting increases in home quality or durability. These results highlight potential environmental costs associated with monetary policies that expand access to credit.
    JEL: G30 Q43 R21 R31
    Date: 2023–10
  22. By: Pies, Ingo
    Abstract: Dieser Kurztext analysiert die jüngsten Äußerungen des Weltklimarats (IPCC) zum gegenwärtigen Erkenntnisstand der Klimaökonomik und gibt Interpretationshilfen, die darauf abzielen, die kritische Urteilskraft im Umgang mit solchen Äußerungen zu stärken.
    Keywords: IPCC, Klimaökonomik, Kosten-Nutzen-Analyse, Climate Economics, Cost-Benefit Analysis
    Date: 2023
  23. By: Billio, Monica; Casarin, Roberto; Costola, Michele; Veggente, Veronica
    Abstract: Measuring and reducing energy consumption constitutes a crucial concern in public policies aimed at mitigating global warming. The real estate sector faces the challenge of enhancing building efficiency, where insights from experts play a pivotal role in the evaluation process. This research employs a machine learning approach to analyze expert opinions, seeking to extract the key determinants influencing potential residential building efficiency and establishing an efficient prediction framework. The study leverages open Energy Performance Certificate databases from two countries with distinct latitudes, namely the UK and Italy, to investigate whether enhancing energy efficiency necessitates different intervention approaches. The findings reveal the existence of non-linear relationships between efficiency and building characteristics, which cannot be captured by conventional linear modeling frameworks. By offering insights into the determinants of residential building efficiency, this study provides guidance to policymakers and stakeholders in formulating effective and sustainable strategies for energy efficiency improvement.
    Keywords: Energy efficiency, Energy Performance Certificate, Machine learning, Tree-based models, big data
    JEL: C10 C53 C50
    Date: 2023
  24. By: Popova, Irina (Попова, Ирина) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: This paper studies Indonesia’s climate policy and its transformation in the context of the geopolitical and economic crisis. Indonesia is one of the world's fastest growing economies and a major emitter. Its actions to combat climate change will facilitate achievement of Paris goals globally. In addition, the country is playing an increasing role in developing the tools of global economic governance, including in the field of climate. The purpose of the study is to distinguish the main priorities and directions of Indonesia's climate policy and their transformation. Based on the results of the study, the authors conclude that Indonesia is demonstrating its commitment to the goals of decarbonization, showing its readiness to introduce even the strictest instruments, including carbon pricing. International partners need to support Indonesia's aspirations and efforts as they advance the achievement of the Paris goals. The principle of common and differentiated responsibilities enshrined in the UNFCCC processes takes into account the national context, therefore, given the centrality of coal to the economic development model and the traditionally high share of emissions from land and forest use, Indonesia's strategy and policy can be considered ambitious.
    Keywords: Indonesia, climate policy, restrictions and taxes, Indonesian green taxonomy, green cover, Just Energy Transition Partnership
    JEL: F52 F53 O38
    Date: 2023–08–02
  25. By: Jalile, Ileana Raquel; Moncarz, Pedro E.
    Abstract: Two databases are constructed on GHG emissions associated with Argentina's international trade between 2000 and 2017, emissions derived from the production of exported goods and those associated with the international transport of exports and imports. Food, beverages, and tobacco, and agriculture, hunting, and related activities, followed by manufactures of metal and chemical products, are the main sectors that explain GHG emissions linked to exports. Petroleum, gas, and mining became less significant. The same sectors explain most of the CO2 emissions linked to the international transportation of exports. For emissions linked to the transportation of imports used in the production of exports, the main contributing sectors are those relating to industrial manufacturing. A decomposition exercise reveals that for emissions linked to the production of exports, the scale effect contributed more significantly in 2000-2011 than in 2012-2017, although in both cases its effect was positive. The composition effect was much less significant. For the emissions associated with international transportation, the main drivers were the scale, sector, and partner effects. Changes in the sector structure of exports appear to have caused more emissions between 2000 to 2011, but the opposite was observed between 2011 and 2017. In the case of emissions from international transportation, changes in the sector structure increased pollution in the case of the transportation of exports, while the opposite was the case for the transportation of imports.
    Keywords: exports
    JEL: F10 F18
    Date: 2022–04
  26. By: Shapor, Maria (Шапор, Мария) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: The final part of the presented study, which consisted of four parts, is devoted to assessing the consequences of the economic inequality of countries, including those dependent on the export of hydrocarbon energy. Note that the estimates presented in this paper also cover the period of various types of sanctions, which also have certain consequences for income inequality. Based on the presented thesis, the purpose of this part of the study is to assess the consequences of economic inequality in the group of countries under study based on the use of econometric models, as well as to conduct a dynamic assessment of indicators of income inequality between countries.
    Keywords: consequences of countries' economic inequality, influence of macroeconomic variables on inequality, quantification of the consequences of income inequality, influence of external shocks on income inequality
    JEL: E01 E21 E22 E27
    Date: 2023–03–18
  27. By: Gabor, Daniela; Braun, Benjamin
    Abstract: Debates about climate policy have neglected the question of macrofinancial pathways to decarbonisation, not all of which are politically and environmentally viable. We propose a theory of macrofinancial regimes, understood as combinations of monetary, fiscal, and financial institutions that shape the creation and allocation of credit/money, and hence the speed and nature of the green transition. Examining recent green industrial policy initiatives, we distinguish between a weak derisking state that tweaks the risk-return profile on infrastructure assets, and a robust derisking state that intervenes directly in the organisation of production by subsidizing capital expenditure in cleantech manufacturing. Although the derisking state is hegemonic today, coordination problems and regressive distributional consequences render this regime unstable. This instability may tip societies into carbon shock therapy, or it may give rise to a big green state, capable of planning and implementing a just green transition through non-market means of coordination.
    Date: 2023–10–05
  28. By: Li, Qiumeng; Fuerst, Franz; Luca, Davide
    Abstract: Under the threat of climate change, many global cities nowadays are promoting shared commuting modes to reduce greenhouse gas emissions. Shared electric bikes (e-bikes) are emerging modes that compete with bikes, cars, or public transit. However, there is a lack of empirical evidence for the net effect of shared e-bikes on carbon emissions, as shared e-bikes can substitute for both higher carbon emissions modes and cleaner commuting modes. Using a large collection of spatio-temporal trajectory data of shared e-bike trips in two provincial cities (Chengdu and Kunming) in China, this study develops a travel mode substitution model to identify the changes in travel modes due to the introduction of shared e-bike systems and to quantify the corresponding impact on net carbon emissions. We find that, on average, shared e-bikes decrease carbon emissions by 108–120 g per kilometre. More interestingly, the reduction effect is much stronger in underdeveloped non-central areas with lower density, less diversified land use, lower accessibility, and lower economic level. Although the actual carbon reduction benefits of shared e-bike schemes are far from clear, this study bears important policy implications for exploring this emerging micro-mobility mode to achieve carbon reduction impacts.
    Keywords: carbon emissions; E-bikes; micro-mobility; sharing economy; substitution effects; yrban context
    JEL: J1
    Date: 2023–10–01
  29. By: Christiaensen, Luc; Ferré, Céline; Honorati, Maddalena; Gajderowicz, Tomasz Janusz; Wrona, Sylwia Michalina
    Abstract: Part of a three-region set of papers analyzing coal-related labor market challenges in Poland, this paper focuses on Wielkopolska, which is most advanced in the transition out of coal. Finding viable job transitions is of enormous importance. The findings call for a more territorial-oriented approach to brokering the coal transition, rather than a sectoral one. First, even though limited from a regional perspective (4, 000 workers), affected jobs are highly concentrated in a few already lagging and depopulating municipalities. Second, while coal-related workers are similarly skilled as other workers in Wielkopolska, non-coal related workers in the at-risk municipalities are substantially less skilled, exposing them to potential displacement effects. Finally, while ready to work and to be re-skilled, discrete choice experiments about their job attribute preferences show that all workers are averse both to commuting and relocating for work, even more so than in Silesia and Lower Silesia. Complementary social protection and employment support will be needed, and the paper suggests some policy options based on international experience. The paper concludes by illustrating how a big-data driven job-matching tool, calibrated on the Polish labor market, could be used to assist caseworkers in identifying “viable-job-transition-pathways” for affected workers as well as to help policymakers identify reskilling needs and attract investments
    Keywords: Just transition; Wielkopolska; skills; workers; job-matching; investment.
    Date: 2022–10–18
  30. By: Breitschopf, Barbara; Büttner, Isabelle; Burghard, Uta
    Abstract: In light of the increasing climate change, policy makers have set ambitious targets for greenhouse gas emission. To achieve these targets, it is necessary to speed up the installation of renewable wind and solar power plants. This dynamic calls for an accelerated planning and permitting process with low resistance from citizens. To ensure a high acceptance of the energy transition, it is important to understand which design elements or characteristics, objectives or impacts of the energy transition are more or less preferred by citizens. This study therefore investigates what the preferred design elements for a fair and secure energy transition of German households look like. Based on literature and Energy Union objectives and policies, key dimensions are identified and then described by design elements. The dimensions are: the form of burden sharing of energy transition costs (distributional aspects), actions with respect to investment in and consumption of energy, the origin and security of energy supply and policies for a sustainable energy transition. To identify the favoured design elements, we applied a conjoint analysis. In an online survey conducted among 2000 German citizens, the respondents were asked to choose between two designs of the energy transition that are described by a design element per dimension. The results show that German households favour the polluter-pays rule for burden sharing, a regional energy supply to ensure supply security, information and appeals as policy instruments to promote the energy transition. Regarding actions, households opt for installing private photovoltaics. At the level of dimensions, the approval and refusal of the suggested burden sharing mechanisms were larger than those of the suggested energy supply design elements.
    Keywords: design elements, energy transition, preferences, burden sharing, energysecurity, investor
    Date: 2023
  31. By: Jiewei Li; Ling Jin; Han Deng; Lin Yang
    Abstract: This review identifies challenges and effective strategies to decarbonize China's rapidly growing transportation sector, currently the third largest carbon emitter, considering China's commitment to peak carbon emissions by 2030 and achieve carbon neutrality by 2060. Key challenges include rising travel demand, unreached peak car ownership, declining bus ridership, gaps between energy technology research and practical application, and limited institutional capacity for decarbonization. This review categorizes current decarbonization measures, strategies, and policies in China's transportation sector using the "Avoid, Shift, Improve" framework, complemented by a novel strategic vector of "Institutional Capacity & Technology Development" to capture broader development perspectives. This comprehensive analysis aims to facilitate informed decision-making and promote collaborative strategies for China's transition to a sustainable transportation future.
    Date: 2023–10
  32. By: Krekel, Christian (London School of Economics); Rode, Johannes (Darmstadt University of Technology); Roth, Alexander (DIW Berlin)
    Abstract: While wind power is considered key in the transition towards net zero, there are concerns about adverse health impacts on nearby residents. Based on precise geographical coordinates, we link a representative longitudinal household panel to all wind turbines in Germany and exploit their staggered rollout over two decades for identification. We do not find evidence of negative effects on general, mental, or physical health in the 12-Item Short Form Survey (SF- 12), nor on self-assessed health or doctor visits. We also do not find evidence for effects on suicides, an extreme measure of negative mental health outcomes, at the county level.
    Keywords: wind turbines, externalities, health, renewable energy, difference-in-differences, event study
    JEL: D62 I10 Q20 Q42 R10
    Date: 2023–10
  33. By: Hoffmann, Bridget; Rud, Juan Pablo
    Abstract: We use high-frequency data on fine particulate matter air pollution (PM 2.5) at the locality level to study the effects of high pollution on labor supply decisions and hospitalizations for respiratory disease in the metropolitan area of Mexico City. We document a negative, non-linear relationship between PM 2.5 and same-day labor supply, with strong effects on days with extremely high pollution levels. On these days, the average worker experiences a reduction of around 7.5% of working hours. Workers partially compensate for lost hours by increasing their labor supply on days that follow high-pollution days. Informal workers reduce their labor supply less than formal workers on high-pollution days and also compensate less on the following days. This suggests that informal workers may experience greater exposure to high pollution and greater reductions in labor supply and income. We provide evidence that reductions in labor supply due to high pollution are consistent with avoidance behavior and that income constraints may play an important role in workers' labor supply decisions.
    Keywords: Air pollution;Informal workers;Mexico
    JEL: Q52 Q53 J22 J46 I14
    Date: 2022–02
  34. By: Eßer, Jana; Frondel, Manuel; Sommer, Stephan; Wittmann, Julia
    Abstract: Im Jahr 2021 wurde in Deutschland die sogenannte CO2-Bepreisung fossiler Kraft- und Brennstoffe eingeführt, um deren Verbrauch zum Zwecke des Klimaschutzes zu reduzieren. Dieser Preisaufschlag auf fossile Energieträger wird in den kommenden Jahren sukzessive erhöht. Der vorliegende Beitrag untersucht die Kenntnis der Bürgerinnen und Bürger zur Wirkungsweise und Höhe der CO2-Bepreisung und der für sie daraus resultierenden individuellen finanziellen Konsequenzen. Eine Erhebung unter mehr als 6.000 Haushalten aus dem Jahr 2022 zeigt, dass sich die überwiegende Mehrheit der Befragten überhaupt nicht oder eher schlecht über die CO2-Bepreisung informiert fühlt. Dies bestätigt sich vor allem durch das mangelnde Wissen über die individuellen finanziellen Konsequenzen: Eine überwältigende Mehrheit von über 80 % der Befragten weiß zwar, dass der CO2-Preis auf fossile Kraft- und Brennstoffe wie Benzin, Diesel, Heizöl und Erdgas aufgeschlagen wird. Allerdings können sie die für sie aus dem CO2-Preis folgende Kostenbelastung nicht korrekt abschätzen. Vielmehr überschätzen sie die finanziellen Konsequenzen oft maßlos. Überdies vermuten viele Befragte irrtümlich, dass der CO2-Preis auch auf weitere Güter wie Kerosin oder Plastiktüten erhoben wird. Diese Ergebnisse stellen die Effektivität der CO2-Bepreisung in Frage. Politik und Wissenschaft sind daher gleichermaßen gefordert, durch bessere Kommunikation und höhere Transparenz die Wirksamkeit dieses Klimaschutzinstrumentes zu fördern.
    Keywords: Panelerhebung, Klimawandel
    JEL: D12 C25
    Date: 2023
  35. By: Galindo Paliza, Luis Miguel; Hoffmann, Bridget; Vogt-Schilb, Adrien
    Abstract: Latin America and the Caribbean must respond to the challenge of climate change while making progress with other sustainable development goals. How much will it cost to meet climate change goals in this context? This work reviews the evidence on the costs of meeting the goals the goals of the Paris Agreement and the sources of finance available to do so in the region. Its main thesis is that climate action does not consist solely or primarily of additional spending, but also requires a massive redirection of existing financial flows. The climate goals cannot be achieved without addressing other sustainable development goals intrinsically related to climate, such as those related to energy, transportation, water, agriculture, and ecosystem conservation, among others. Furthermore, climate action is closely linked to social spending since social conditions such as poverty, inequality, and lack of access to basic health services exacerbate vulnerability to climate change. Finally, the transition to a decarbonized and resilient economy must be fair. A so-called just transition means maximizing socioeconomic benefits, minimizing, or compensating transition costs, and involving all affected parties in decision-making processes. Consequently, climate action is also linked to competitiveness, education levels, labor markets, and social institutions. We find that responding to the climate crisis requires annual spending on the provision of infrastructure services of between 2% to 8% of GDP and annual spending to address a variety of social challenges of between 5% and 11% of GDP. This will involve aligning in total from 7% to 19% of annual GDP, representing from US$470 billion to US$1, 300 billion of infrastructure and social spending in 2030, with sustainable, resilient, and decarbonized development goals. The benefit of this redirection will be far greater than its costs because it will avoid the worst impacts of climate change and generate economic, social, fiscal, and environmental benefits. Specific financing sources, such as green taxes and sustainable bonds, can finance part of the effort. However, to redirect public and private spending and foreign investment into solutions consistent with climate goals, governments will also need to reform policies and regulations in all sectors. Comprehensive climate strategies can help identify the necessary transformations to move toward a resilient, carbon-neutral economy in the region by 2050. Development banks can directly finance a small part of the necessary spending and support the design and implementation of reforms to redirect existing financial flows.
    Keywords: climate change
    JEL: Q54 H51 H52 H53 H54 H55 H23
    Date: 2022–02
  36. By: Joseph S. Shapiro
    Abstract: This paper proposes that strong financial, judicial, and labor market institutions provide comparative advantage in clean industries, and thereby improve a country's environmental quality. Five complementary tests support this hypothesis. First, industries that depend on institutions are disproportionately clean. Second, strong institutions increase relative exports in clean industries, even conditional on environmental regulation and factor endowments. Third, an industry's complexity helps explain the link between institutions and clean goods. Fourth, a quantitative general equilibrium model indicates that strengthening a country's institutions decreases its pollution through relocating dirty industries abroad, though increases pollution in other countries. Fifth, cross-country differences in the composition of output between clean and dirty industries explain more of the global distribution of emissions than differences in the techniques used for production do. The comparative advantage that strong institutions provide in clean industries gives one under-explored reason why developing countries have relatively high pollution levels.
    JEL: F18 F55 F6 F64 H23 O4 O44 P48 Q50 Q56
    Date: 2023–10
  37. By: Barbrook-Johnson, Peter; Tankwa, Brendon
    Abstract: There is growing optimism that the energy transition will be strongly aided by the reduction in global renewable technology costs. We use trends in solar PV and onshore wind costs and related factors to explore differences between countries and consider how cost inequalities might affect the energy transition. We show that, despite average costs falling, technology cost inequality between countries is increasing over time. The impacts of this could be severe as certain countries and investors face higher costs to implement green technologies. Countries with historic developmental disadvantages, and lower emissions, face higher costs, reinforcing potential injustices in the energy transition. We also show that demand pull factors (e.g., income, ease of doing business), renewable industry competitiveness, and policy portfolios are significant explanatory factors for cost differences.
    Keywords: renewable energy, solar energy, wind energy, technology costs, just transition
    Date: 2023–10
  38. By: Weiss, Mariana; Chueca, J. Enrique; Jacob, Jorge; Gonçalves, Felipe; Azevedo, Marina; Gouvêa, Adriana; Ravillard, Pauline; Carvalho Metanias Hallack, Michelle
    Abstract: Los avances masivos de la digitalización han hecho que los programas de Respuesta a la demanda (RD) en el sector residencial sean factibles; sin embargo, la mayoría de los hogares en la región de América Latina y el Caribe (ALC) no conocen esta clase de programas. En este informe, los autores exploran experimentos sobre la disposición de los consumidores residenciales a adoptar RD para reducir sus facturas. Los autores analizan la probabilidad de que los hogares de ingresos bajos y medios en 11 países de ALC adopten un plan de RD. Los cuestionarios contaron con explicaciones sobre los propósitos y beneficios de los programas de RD. Los autores también analizaron la clase de tecnología de comunicación a la que es más probable que los consumidores respondan. La mayoría de los entrevistados entendieron que sería justo tener tarifas de horas pico y horas valle para cubrir los costos de suministro. En tres de los cinco casos analizados, más del 50% de los entrevistados optaron por pasarse a un plan de RD. Esos fueron el caso de los programas de RD con una meta de ahorro pico y un descuento preacordado, y el control del calentador o aire acondicionado por parte de la empresa de servicios públicos durante las horas pico. Los resultados sugieren que los diseñadores de políticas deberían comenzar a considerar los programas de respuesta a la demanda como una herramienta para aumentar la asequibilidad de los servicios de electricidad para los consumidores residenciales. Para eso, es importante considerar también la curva de aprendizaje que se requerirá de los usuarios, proveedores de servicios y reguladores.
    JEL: O54 Q40 Q41 Q42 Q48 Q43
    Date: 2022–03
  39. By: Le, Anh H.
    Abstract: This paper studies the macro-financial implications of using carbon prices to achieve ambitious greenhouse gas (GHG) emission reduction targets. My empirical evidence shows a 0.6% output loss and a rise of 0.3% in inflation in response to a 1% shock on carbon policy. Furthermore, I also observe financial instability and allocation effects between the clean and highly polluted energy sectors. To have a better prediction of medium and long-term impact, using a medium-large macro-financial DSGE model with environmental aspects, I show the recessionary effect of an ambitious carbon price implementation to achieve climate targets, a 40% reduction in GHG emission causes a 0.7% output loss while reaching a zero-emission economy in 30 years causes a 2.6% output loss. I document an amplified effect of the banking sector during the transition path. The paper also uncovers the beneficial role of pre-announcements of carbon policies in mitigating inflation volatility by 0.2% at its peak, and our results suggest well-communicated carbon policies from authorities and investing to expand the green sector. My findings also stress the use of optimal green monetary and financial policies in mitigating the effects of transition risk and assisting the transition to a zero-emission world. Utilizing a heterogeneous approach with macroprudential tools, I find that optimal macroprudential tools can mitigate the output loss by 0.1% and investment loss by 1%. Importantly, my work highlights the use of capital flow management in the green transition when a global cooperative solution is challenging.
    Keywords: Climate change, Environmental policy, Optimal policy, Transition risk
    JEL: Q58 E32 Q54 C11 E17 E52
    Date: 2023
  40. By: Josse Delfgaauw (Erasmus University Rotterdam); Otto H. Swank (Erasmus University Rotterdam)
    Abstract: IPCC (2022) documents a looming gap between climate goals and implemented policies and points to a lack of political commitment. We study policymakers' incentives to commit. A policymaker decides on a policy to encourage citizens to make investments and determines the degree of flexibility to change the policy after investments have been made. This adds redistributive concerns to the trade-off between commitment and flexibility. When a majority of citizens invest, redistributive concerns alleviate the time-inconsistency problem. When a minority of citizens invest, redistributive concerns aggravate the time-inconsistency problem. Then, the policymaker either commits too strongly or refrains from commitment altogether.
    Keywords: commitment, flexibility, redistribution, median voter, climate
    JEL: D72 D78 H23 Q52
    Date: 2023–10–12
  41. By: Acuna, Julio; Balza, Lenin; Gómez Parra, Nicolás
    Abstract: To study the causal impact of oil royalties on human capital, we exploit quasi-experimental variation arising from a law in Ecuador that transfers resources to municipalities regardless of their oil-producing status. We find that royalties increase the likelihood of students completing primary and secondary education. Students reaching high school are also more likely to pass and excel on the exit exam. Furthermore, schools are more likely to remain open, increase their size, and become more road-accessible. However, the likelihood of students pursuing higher education decreases as they face steeper opportunity costs when labor demand increases.
    JEL: I25 O13 O15 Q32 Q35
    Date: 2022–05
  42. By: Potashnikov, Vladimir (Поташников, Владимир) (The Russian Presidential Academy of National Economy and Public Administration); Levakov, Pavel (Леваков, Павел) (The Russian Presidential Academy of National Economy and Public Administration)
    Abstract: Currently many sectors of the Russian economy, including the fuel and energy sector, are undergoing structural changes. This is due both to the energy transformation (a significant change in the structure of the energy balance) and the recent events of 2022. The article analyzes how these changes will affect the Russian energy sector. Firstly, the risks of reducing natural gas exports to the EU countries are assessed. Gas supplies to the EU are a significant part of Russia's export earnings, and the supplies themselves are difficult to redirect to other directions. Secondly, it is analyzed how recent changes will affect the development of the energy sector using the example of two scenarios for the development of the energy industry before and after 2022. Finally, it is assessed how the changes that have taken place will affect the effectiveness of an active climate policy in Russia. The possibility of a reduction in domestic demand for gas in the EU or an increase in production is unlikely. However, an increase in LNG (liquefied natural gas) imports is possible, which may allow the EU to abandon natural gas imports from Russia in the coming years. EU nominal regasification capacity allows for a potential increase in EU LNG imports by 110 billion cubic meters per year. This can be done both by redirecting supplies from other countries to the EU, and by increasing production and liquefaction of LNG. As a result of an increased sanctions pressure, with a high degree of probability, without an active climate policy, the level of greenhouse gas emissions will increase significantly. In addition to climate effects and associated negative environmental impact, this also negatively affects the prospects for economic development. Thus, greater consumption of fossil fuels makes the economy more dependent on their prices and reduces the potential for an increase in the volume of export. An analysis of decarbonization scenarios has shown that because of the recent events, an active climate policy will cost more, with more modest results.
    Keywords: natural gas, climate policy, international trade, energy, decarbonization, RUTIMES, LNG, Representative Energy System
    JEL: F1 O13 Q4
    Date: 2022–11–10
  43. By: Giovanni Maccarrone (Department of Social Sciences and Economics, Sapienza University of Rome); Marco A. Marini (Department of Social Sciences and Economics, Sapienza University of Rome); Ornella Tarola (Department of Social Sciences and Economics, Sapienza University of Rome)
    Abstract: In an economy where consumers are heterogeneous in their preferences over the hedonic and environmental attributes of goods on sale, we explore the effects of anti-consumerism and environ- mentalism. We show that when the environmental attributes of products come at the expense of the hedonic attributes, a higher supply of anti-consumerism and environmentalism yields the ex- pected positive effect on the environment. In contrast, when hedonic and environmental attributes are jointly met by a good, higher levels of anti-consumerism and environmentalism negatively affect the society's environmental footprint. Moreover, the impact of anti-consumerism and environmen- talism on social welfare is far from being obvious, giving rise to unexpected redistributive effects between firms and consumers.
    Keywords: environmentalism, hedonism, anti-consumerism, hedonic and environmental product attributes, vertical product differentiation.
    JEL: D11 L13 Q50
    Date: 2023–01
  44. By: Vuong, Quan-Hoang
    Abstract: *Editorial note: This story is the closing chapter of The Kingfisher Story Collection (3rd Ed.) [1]. It was translated by Minh-Hoang Nguyen from the original Vietnamese version.
    Date: 2023–09–15

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