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on Energy Economics |
| By: | Ro, Jin Wook PhD; Murphy, Colin W. PhD; Wang, Qian PhD |
| Abstract: | The Low Carbon Fuel Standard (LCFS) plays a critical role in California’s efforts to reduce greenhouse gas (GHG) and air pollutant emissions from transportation. The LCFS incentivizes the use of fuels with lower life cycle GHG emissions by using a credit market mechanism to provide incentives for low-carbon fuels, using revenue generated by charges applied to high-carbon ones. Maintaining an approximate balance between LCFS credit and deficit supplies helps support a stable LCFS credit price and the broader transition to low-carbon transportation. The Fuel Portfolio Scenario Model, presented here, evaluates bottom-up fuel supply and LCFS compliance to inform LCFS policy decisions. We considered two key fuel demand scenarios: (1) the Low Carbon Transportation scenario, reflecting the expected transition to low-carbon transportation in California over the next 15 years, and (2) the Driving to Zero scenario, featuring a significantly higher consumption of petroleum gasoline. In both scenarios, 2030 LCFS targets around 30% resulted in a near-balance between credits and deficits, with some banked credits remaining. Several additional scenarios were modeled to explore the impact of target trajectory timing, alternate post-2030 targets, greater biofuel use, and other parameters. This fuel portfolio scenario modeling work can meaningfully inform policy development. |
| Keywords: | Social and Behavioral Sciences, alternate fuels, greenhouse gases, incentives, fuel consumption, emissions trading, standards, policy analysis, forecasting, Low Carbon Fuel Standard |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt6f2284rg&r=ene |
| By: | Manuel Hidalgo-Pérez (Department of Economics, Universidad Pablo de Olavide); Jorge Galindo (Esade Ramón Llul University); Natalia Collado (Esade Ramón Llul University); Ramón Mateo (BeBarlet) |
| Abstract: | As the volatility of short-term energy market prices increases due to exogenous shocks and the changing nature of the energy mix, market interventions are gaining importance in the policy debate. Accurate and robust quantification of their impact is becoming therefore essential. This paper conducts a causality analysis to evaluate the Spanish 'gas cap' for electricity generation during the 2022 energy crisis. We use Bayesian structural time series models to isolate its impact on affected consumers, primarily those under the regulated tariff, from June to December 2022. Our results show that the mechanism successfully lowered prices compared to a counterfactual scenario without the intervention. However, the policy also led to an increase in electricity generation from gas-fired combined cycle plants. In addition, exports to France increased by over 80\% after implementation, as Spanish wholesale prices became cheaper than French prices. Our analysis (1) provides an accurate quantification to date of one of the most consequential energy market interventions in recent years; (2) demonstrates the fruitful use of a novel evaluation method for energy policy; (3) highlights the trade-off between the short-term goal of consumer price relief and the long-term goals of fossil fuel reduction and decarbonisation. |
| Keywords: | policy evaluation, gas price cap, consumer prices, gas consumption. |
| JEL: | D12 Q41 Q48 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pab:wpaper:23.08&r=ene |
| By: | Walid Matar; Noura Mansouri; Evar Umeozor (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Saudi Arabia has announced plans to cut greenhouse gas (GHG) emissions by 278 million tons of CO2 equivalent (CO2e). In this regard, this paper contributes a modeling view of the climate-related effects of various energy policies on the Saudi energy system. The baseline entails the continued progression of current domestic policies without energy price reform. We examine two main alternative scenarios: The announced policies scenario (APS) incorporates some of the plans that the Saudi government has announced. In the other scenario, we run the baseline scenario with a cap on total CO2 emissions equal to those displayed in the announced policies. |
| Keywords: | Applied General model, Bottom up model, Discount rate, Discounting |
| Date: | 2023–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp26&r=ene |
| By: | Afia Malik (Pakistan Institute of Development Economics) |
| Abstract: | Due to concerns over carbon emissions and volatility in fossil fuel prices, there has been a renewed interest in nuclear energy worldwide as a solution to growing energy demands (Vegel and Quinn, 2017). Currently, fossil fuels comprise 63% of Pakistan’s commercial energy supplies, while the remaining 37% is derived from renewables (including hydro)(28%) and nuclear power(9%) (GOP, 2023). |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pid:kbrief:2023:105&r=ene |
| By: | Jason Dunn; Christopher J. Neely |
| Abstract: | So far, Western sanctions on Russian oil and gas exports appear to be working. But in the longer term, Russia may find ways to evade the price cap imposed on its oil sales. |
| Keywords: | Russia; oil and gas; exports; Russian invasion of Ukraine |
| Date: | 2023–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:95701&r=ene |
| By: | Robert J.R. Elliott; Gavin Harper; Benjamin Jones; Viet Nguyen-Tien |
| Abstract: | Rising demand for electric vehicles (EVs) is changing the geopolitical landscape, as the world pivots away from fossil fuels towards the green minerals critical to the EV supply chain. Benjamin Jones, Viet Nguyen-Tien, Robert Elliott and Gavin Harper explain how the race to secure the supply of raw materials needed for EV batteries is creating new opportunities and geopolitical risks. |
| Keywords: | technological change, green growth, electric vehicles, global value chains, resource mobilisation, critical materials |
| Date: | 2023–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepcnp:664&r=ene |
| By: | Ralph De Haas; Ralf Martin; Mirabelle Muuls; Helena Schweiger |
| Abstract: | We use data on 10, 852 firms across 22 emerging markets to analyse how credit constraints and deficient firm management inhibit corporate investment in green technologies. For identification, we exploit quasi-exogenous variation in local credit conditions. Our results indicate that both credit constraints and green managerial constraints slow down firm investment in more energy efficient and less polluting technologies. Complementary analysis of data from the European Pollutant Release and Transfer Register (E-PRTR) reveals the pollution impact of these constraints. We show that in areas where more firms are credit constrained and weakly managed, industrial facilities systematically emit more CO2 and other gases. This is corroborated by the finding that in areas where banks needed to deleverage more after the Global Financial Crisis, industrial facilities subsequently reduced their carbon emissions considerably less. On aggregate this kept CO2 emissions 5.6% above the level they would have been in the absence of credit constraints. |
| Keywords: | Credit constraints, green management, CO2 emissions, energy ei??ciency , Productivity |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:055&r=ene |
| By: | Sven Alsheimer (Fraunhofer Institute for Systems and Innovation Research ISI, Breslauer Str. 48, 76139 Karlsruhe, Germany); Tamara Schnell (Carl von Ossietzky University Oldenburg, Ammerländer Heerstraße 114-118, 26129 Oldenburg, Germany); Camilla Chlebna (Department for Geography, Kiel University, Ludewig-Meyn-Straße 8, 24118 Kiel, Germany); Sebastian Rohe (Carl von Ossietzky University Oldenburg, Ammerländer Heerstraße 114-118, 26129 Oldenburg, Germany) |
| Abstract: | The large-scale deployment of low-carbon energy technologies is crucial for reducing greenhouse gas emissions and ideally limiting climate change. The success of this transition towards a carbon-neutral society depends on how these technologies are perceived by civil society and whether key societal stakeholders support or oppose their roll-out. Two major debates addressing this issue revolve around the concepts of acceptance and legitimacy. Acceptance literature examines the drivers and levels of support of novel technologies and socio-technical systems. Legitimacy literature captures how these technologies are aligned to their institutional environment. Thus far, there is little cross-fertilisation between the two debates. For this contribution, we conducted a systematic literature review of the two research streams to gain a better understanding of how the social dynamics of low-carbon energy technology deployment are conceptualised. Our review involved the analysis of 240 articles from SCOPUS that empirically studied the acceptance or legitimacy of low-carbon energy technologies. Our findings suggest that the two literature strands are indeed rather disconnected – few articles use both concepts conjointly. They further illustrate that both have distinct research foci and intellectual roots. Acceptance studies tend to focus on individual perspectives towards specific technologies and relate these to the individuals’ backgrounds. In contrast, legitimacy studies tend to focus on the overall alignment of specific technologies or entire innovation systems with the institutional context. Based on our findings, we propose a framework, to allow for a better understanding of the dynamic interplay between macro-level legitimacy evaluations and micro-level acceptance evaluations. |
| Keywords: | Acceptance, Legitimacy, Public perceptions, Acceptability, Legitimation, Low-carbon energy technologies |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:aoe:wpaper:2301&r=ene |
| By: | Jake Hitch;Nadine Henderson;Graham Cookson |
| Abstract: | Tackling the climate crisis is an international priority. Healthcare has a high carbon footprint, accounting for 5% of the UK's carbon footprint (Lenzen et al., 2020) and NHS England has estimated that the manufacture, supply, and use of pharmaceuticals account for 25% of the NHS's total carbon footprint (NHS England, 2020). As part of a raft of measures to improve sustainability, the UK government and the NHS in England have shown international leadership by setting ambitious net zero targets in recent years. However, it is widely recognised that to meet net zero targets, the private sector has an important role to play in reducing the carbon and broader environmental footprints of the products and services they supply to society. Many pharmaceutical companies have made commitments to reach net zero carbon across their operations, but in order to deliver, several significant, industry-specific challenges must be overcome. This report sets out the high-priority activities that the NHS, UK government and industry should undertake to tackle these challenges. To adopt the recommendations, investment is needed from the industry, the UK Government and the NHS. No one actor can be expected to foot the bill for the upfront and ongoing investment needed to achieve long-term sustainability within the pharmaceutical industry. Any action taken in the UK will need to be replicated internationally to have any impact. Meaningful engagement, collaboration and action need to be taken now by governments, health systems, medicines regulators and companies globally to secure the era of green pharmaceuticals. The core analysis for this report was undertaken before the energy crisis began. The crisis is caused by a number of global factors that have been worsened by local factors to result in high energy prices. The soaring cost of energy serves to reinforce both the urgency for action and the recommended actions outlined in this report. Specifically, the energy crisis shows how vulnerable the global pharmaceutical supply chain is to geo-political events (such as the war in Ukraine), fluctuations in the price of energy due to shortages of supply and the effects of climate change like heatwaves, fires and draughts. In the context of high energy prices, any actions to improve energy efficiency will pay for themselves more quickly increasing the incentives on companies to invest in energy efficiency to reduce the vulnerability of the industry to global shocks in the future. |
| Keywords: | Supporting the Era of Green Pharmaceuticals in the UK |
| JEL: | I1 |
| Date: | 2022–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:ohe:conres:002474&r=ene |
| By: | Hunter Kuhlwein; Sven Bienert; Yannick Schmidt |
| Abstract: | Recent studies have shown an increase of Embodied Carbon of buildings while operational emissions were reduced in many countries. Since renovations are crucial to tackle climate crisis, this paper aims to investigate to what extent embodied carbon of energetic retrofits is beneficial from an ecological perspective. In particular, this paper researches the question of how long the carbon payback period is for the asset classes and on which ones the focus should initially be in the upcoming modernisations. Starting off with a literature review on embodied carbon in building materials and construction, a set of case studies is then analyzed in terms of avoided emissions and embodied carbon emissions that come along with the retrofit. Typical renovation packages and scopes are compared with each other by calculating the environmental impact as well as their economical payback period. Subsequently, the energy consumption before and after retrofit is considered and the extension of the life cycle by the measure is evaluated. As a result, benchmarks will be established for different energetic retrofit measures in different regions. This paper helps to prioritize retrofit measures from an ecological point of view and at the same time is to the best of the authors' knowledge a first-time framework for the comparison between emission savings and initial carbon emitted during the retrofit. |
| Keywords: | Carbon Budget; Climate Policy; Embodied Carbon; Life cycle assessment |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_192&r=ene |
| By: | Blaber, Richard Michael |
| Abstract: | This paper will argue that the global capitalist economy was founded, and depends, on the consumption of fossil fuels, and the increase in supply of renewable energy in the next three decades will not alter that fact significantly, given both economic and demographic growth and Jevons’ Paradox. The resulting increase in fossil fuel consumption in that time, along with that increased economic activity and human population, which is already unsustainable, will lead to increased greenhouse gas (GHG) emissions, further anthropogenic climate change, and loss of biodiversity. The so-called ‘Doomsday Argument’ predicts that the deleterious impacts of these effects will be so severe as to result in the extinction of our entire species. |
| Date: | 2023–10–28 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:cs3bq&r=ene |
| By: | Schroeder, Christofer; Stracca, Livio |
| Abstract: | This paper studies the impact of national carbon taxes on CO2 emissions. To do so, we run local projections on a cross-country panel dataset, matching measures of emissions of carbon dioxide with information on the introduction of carbon taxes and their implied price. Importantly, we consider both measures of territorial emissions — emissions emitted within a country’s borders — and consumption emissions — emissions emitted anywhere in the world to satisfy domestic demand. We find that carbon taxes reduce territorial emissions over time, but have no significant effect on consumption emissions. Our estimates are robust to propensity-score weighting adjustments and are driven by countries which are more open to trade. Carbon taxes also lead to a modest increase in imports, suggesting that international trade may imply a negative carbon externality. Together, our findings highlight the limitations of national carbon taxes in isolation and the importance of international cooperation in reducing global emissions. JEL Classification: F18, F64, H23, Q58 |
| Keywords: | carbon leakage, carbon taxes, emissions |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232862&r=ene |
| By: | Cian Mulligan (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Localization and local content mandates are an increasing presence in the global investment landscape, and the development of local content policy in Saudi Arabia will be an important factor in the lasting legacy of Vision 2030. While virtually all industries are targeted by local content mandates in Saudi Arabia, a sector tipped for strict targets and maximum local value added is renewable energy production. This is no surprise, as the abundant natural resources of sun and wind make the Kingdom well placed to be globally competitive in the sector, and as the industry is still in its infancy, an opportunity exists to localize from the ground up. This paper looks at the employment possibilities across the value chain of solar PV and onshore wind and, applying the unique characteristics of the Saudi labor force, investigates where localization mandates should target in order to optimize the benefits to the Saudi economy. |
| Keywords: | Belt and Road, Capital expenditure, Circular Carbon Economy, CO2 emissions |
| Date: | 2023–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp15&r=ene |
| By: | Afia Malik (Pakistan Institute of Development Economics) |
| Abstract: | Coal contributes significantly to global energy supplies. In 2021, coal was the second-largest energy source consumed globally (Chart 1). Over the years, coal demand has increased substantially from 2.6 billion tons in 1980 to 5.5 billion tons in 2021 (Chart 2). Because of environmental concerns and the increasing trend towards renewables, its share declined in the United States and many European countries, decreasing global consumption in 2014 and onwards. But the trend reversed in 2020. It is because of the Russia-Ukraine war leading to the worldwide energy crisis that the demand for coal has increased. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pid:kbrief:2023:103&r=ene |
| By: | Leonelli, Giulia Claudia |
| Abstract: | with its narrow focus on price-based policies and 'explicit' carbon prices, the EU carbon border adjustment mechanism (CBAM) aims to prevent carbon leakage by ensuring that imported products 'bear' the same exact economic costs 'borne' by EU products. The proposed US border carbon adjustment (BCA) and the recent proposal for a global steel and aluminium arrangement (GSAA), by contrast, reflect a broader focus on environmental equivalence and recourse to punitive or quasi-punitive remedies. All recently proposed carbon border measures suffer from specific limitations. Further, albeit to a different extent, they are all associated with problematic aspects in terms of WTO law compatibility. This research note enquires whether the GSAA could be fine-tuned at the regulatory design stage in such a way as to provide an environmentally effective and WTO law compatible way forward. The analysis illustrates that recourse to an installation-based approach, emission limit values and product standards would achieve these goals. Nonetheless, the implementation of this ambitious strategy would be fraught with political obstacles. |
| Keywords: | 'Global Steel and Aluminium Arrangement'; 'Green Steel Deal'; carbon border measures; CBAM; climate clubs; GATT 1994 |
| JEL: | J1 |
| Date: | 2022–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120320&r=ene |
| By: | Alkis Blanz; Beatriz Gaitan |
| Abstract: | In this paper, we compare different mitigation policies when housing investments are irreversible. We use a general equilibrium model with non-homothetic preferences and an elaborate setup of the residential housing and energy production sector. In the first-best transition, the energy demand plays only a secondary role. However, this changes when optimal carbon taxes are not available. While providing subsidies for retrofits results in the lowest direct costs for households, it ultimately leads to the highest aggregate costs and proves to be an ineffective way to decarbonize the economy. In the second-best context, a phased-in carbon price outperforms the subsidy-based transition. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.15687&r=ene |
| By: | Kang , Jong Woo (Asian Development Bank); Gapay, Joshua Anthony (Asian Development Bank) |
| Abstract: | Trade encourages economic expansion and improves welfare based on international division of labor. However, trade also has an environmental footprint, particularly in the form of carbon dioxide (CO2) and other emissions. This paper examines the impact of environmental regulation in exporter and importer economies on cross-border carbon flows. It uses pooled estimation, random effects, fixed effects, fixed effects with instrumental variables, and Poisson pseudo maximum likelihood models to estimate the effect of more stringent environmental regulation, while controlling for scale, technique, and composition effects associated with CO2 emissions. While stricter environmental regulations help reduce CO2 emissions from domestic production, leading to lower CO2 emissions embodied in exports, stricter regulations on the importing side lead to higher CO2 emissions embodied in imports. More importantly, stricter environmental regulations could encourage further outsourcing of intermediate inputs by exporters, prompting carbon leakages in the upstream segment of global value chains |
| Keywords: | CO2 emissions; carbon leakage; trade; global value chain |
| JEL: | F10 F14 F18 |
| Date: | 2023–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0700&r=ene |
| By: | Jennifer Considine; Philipp Galkin; Majed Al Suwailem; Abdullah Aldayel (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The purpose of this report is to recommend an interconnected regional and international strategy to share the burden of developing and maintaining commercial and strategic storage infrastructure for Saudi crude oil and products through an alliance with the Gulf Cooperation Council (GCC) and other countries. If properly implemented, the project has the capacity to enhance the security of oil supply throughout the transition to a green economy. Such enhancement can be achieved through the centralized tracking and management of commercial and strategic stockpiles overseas. The initiative will forge new links in the global supply chain for crude oil and liquids and reveal new forms of financing for strategic petroleum reserves (SPRs). |
| Keywords: | Agreement, Allocation, Strategic petroleum reserves, Alternative fuels |
| Date: | 2023–09–26 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp17&r=ene |
| By: | Bahi, Dhilanveer Teja Singh; Paavola, Jouni |
| Abstract: | Despite the acceleration of electrification in India, many communities still suffer from the direct and indirect effects of energy poverty. We investigate whether access to liquified petroleum gas (LPG) and consumption expenditure can be used as measures of energy poverty in India, with a particular focus on gender equality. A district-level, quantitative analysis of household survey data was performed for the energy-poor states of Bihar, Jharkhand, Madhya Pradesh, Odisha, Uttar Pradesh, and West Bengal. Wellbeing and gender equality indices were constructed from contextually relevant indicators, whilst LPG access was considered in terms of physical access, affordability, and awareness. Levels of consumption expenditure were considered based on the updated urban poverty line for India. We found that LPG access and consumption expenditure do not have significant relationship with wellbeing or gender equality. The result indicates that the traditional economic approach of using consumption expenditure cannot capture the multidimensionality of energy poverty. This has significant implications as it challenges the status quo of energy poverty measurement in India. The research also adds value to existing arguments that electricity access cannot be used as a sole indicator of energy poverty, by extending the argument to access to a modern cooking fuel. LPG access was however strongly associated with the education of women on the health effects of ‘chulha’ smoke. Consumption expenditure is also strongly associated with female property ownership which calls for future research on this novel relationship. Overall, this study calls for shifting energy poverty discussions to emerging concepts such as wellbeing and gender equality. |
| Keywords: | energy poverty; modern cooking fuels; wellbeing; gender equality; India |
| JEL: | Q40 |
| Date: | 2023–08–07 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120564&r=ene |
| By: | Leisner, Jonathan (University of Copenhagen); Munch, Jakob R. (University of Copenhagen); Nielsen, August Twile (University of Copenhagen); Schaur, Georg (University of Tennessee) |
| Abstract: | We use Danish firm-level data to examine the causal link between carbon emissions, offshoring, and import competition. Offshoring reduces firms' emission intensity but increases their production. Import competition reduces firms' production without affecting their emission intensity. For Denmark, these effects imply that observed offshoring trends reduced the overall manufacturing emission intensity while import competition did not. However, despite the emission reducing effects in local manufacturing, offshoring did not affect global emissions. Furthermore, import competition substantially increased global emissions. Therefore, based on offshoring and Chinese import competition, our results suggest that international trade may be bad for the global environment. |
| Keywords: | carbon emissions, offshoring, import competition |
| JEL: | F14 F18 Q54 Q56 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16556&r=ene |
| By: | Fatih Yilmaz; Fahad A. Alswaina; Fateh Belaid; Mohamad Hejazi; Mari Luomi (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This study aims to assess the alignment of global sustainable financial flows with transition investment priorities. First, we identify investment gaps based on the difference between the required annual investment to meet global net-zero emissions (NZE) targets and current investment flows. Our assessment reveals that nearly all countries must significantly accelerate their efforts, as their current investment levels fall short of what is required. Second, and perhaps more importantly, investment gaps are particularly large for non-Annex I (developing) countries. Financing these large-scale investments continues to be a major global challenge. The size of global environmental, social and governance (ESG) finance remains low. Specifically, despite their large investment gaps, developing countries receive only a minor share of global ESG funds, where access to conventional finance is already limited. |
| Keywords: | Carbon, Carbon capture and storage, Carbon neutrality |
| Date: | 2023–10–09 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp19&r=ene |
| By: | Yervand Martirosyan |
| Abstract: | Existing studies demonstrate the short-run connection between environmental conditions and academic performance. However, the long-term effects of exposure to adverse living conditions on academic achievement remain underexplored. This study investigates the long-term impact of energy poverty, and policy interventions aimed at alleviating it, on the academic performance of Chinese schoolchildren starting from infancy. It specifically utilizes the Huai River Policy, which provides free winter heating exclusively to northern regions in China but not to adjacent southern regions. My findings suggest a significant positive influence of winter heating on schoolchildren’s academic performance, with a more pronounced effect for children born during winter months. The insights gained from this research could inform policy debates to enhance educational outcomes and human well-being. |
| Keywords: | energy poverty, academic performance, climate |
| JEL: | I24 I25 Q51 Q54 Q58 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:cer:papers:wp761&r=ene |
| By: | Ms. Era Dabla-Norris; Salma Khalid; Giacomo Magistretti; Alexandre Sollaci |
| Abstract: | Building public support for climate mitigation is a key prerequisite to making meaningful strides toward decarbonization and achieving net-zero emissions. Using nationally representative, individual-level surveys for 28 countries, this paper identifies the current levels and drivers of support for climate mitigation policies. Controlling for individual characteristics, we find that pre-existing beliefs about policy efficacy, perceived costs and co-benefits (e.g., cleaner air), and the degree of policy progressivity are important drivers of support for carbon pricing policies. The knowledge gap about climate mitigation policies can be large, but randomized information experiments show that support increases (decreases) after individuals are introduced to new information on the benefits (potential costs) of such policies. |
| Keywords: | Climate mitigation policies; survey; experiments |
| Date: | 2023–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/223&r=ene |
| By: | Jung , Jihyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | China, the world's largest carbon emitter and skeptical of developing countries’ emissions reduction commitments, announced internationally in 2020 its vision to peak carbon emissions in 2030 and achieve carbon neutrality by 2060. China's emission reduction strategy has a significant impact on China's economy and society as a whole, and Korea, which has a close economic ties with China, will also be affected. China's carbon neutral policy announced in 2021 includes the continuous promotion of policies such as direct regulation, public investment, and subsidies, as well as the nationwide implementation of the ETS and the expansion of applicable industries. This study analyzed the impact of China's ETS on Chinese industries using the input-output model, and derived implications for Korea-China economic relations based on the results. |
| Keywords: | China; ETS; Impact on Industries; Korea-China economic relations |
| Date: | 2023–10–19 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2023_037&r=ene |
| By: | Romain Fillon (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, UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Céline Guivarch (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); Nicolas Taconet (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, TU - Technical University of Berlin / Technische Universität Berlin, PIK - Potsdam Institute for Climate Impact Research) |
| Abstract: | We investigate the implications of absolute risk aversion with respect to intertemporal utility, i.e. temporal risk aversion, in the presence of a stylized climate tipping risk affecting productivity irreversibly. Optimal climate policy is more stringent under temporal risk aversion, in order to reduce all present and future probabilities of crossing the tipping point and avoid a situation where all generations are badly off. Temporal risk aversion implies a 30% increase in the social cost of carbon (SCC) under our benchmark calibration and for a 10% irreversible increase in the level of economic damage from climate change. The optimal SCC under temporal risk aversion increases sharply with the level of damage brought by a potential tipping point. |
| Keywords: | Stochastic climate-economy modeling, Risk-sensitive recursive preferences, Environmental policy, Risk aversion, Environmental Economics, Climate change |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04250702&r=ene |
| By: | Sinan Güne; Mustafa Tombul; Harun Tanrivermis |
| Abstract: | Energy consumption prediction on buildings can help building owners and operators to reduce energy costs, reduce environmental impact, improve occupant comfort, and optimize building performance. Study aims to develop a prediction model for energy consumption prediction in university campus buildings using machine learning techniques with time series and physics/engineering-based datasets. Time series energy consumption data sets from existing buildings, as well as building physics/engineering data, will be analyzed to estimate campus scale energy consumption. Time series data will be used for heating/cooling and lighting, and physics/engineering data will be used for outdoor data such as outdoor air temperature, relative humidity, and building specific characteristics such as building floor area, floor height, and material type. To improve prediction accuracy, a simulation study will be conducted using a physics-based approach, and a model will be developed. The results of this approach will be used as input for the data-based approach, and a hybrid model will be presented for prediction using deep learning techniques such as LSTM and RNN. Within the scope of the study, studies on energy consumption prediction of existing buildings generally use models containing time series datasets on energy consumption or models containing building physical information. Considering that each of these data impacts energy consumption, evaluating data together helps make more accurate consumption forecasts. However, evaluating these data together is a big problem in itself. Within the scope of the study, predictions will be made for using these two data types together and the advantages and shortcomings of the model results compared to data-based models will be discussed. While previous research has primarily focused on either time series datasets or building physical information, this study will think to be one of the first to evaluate these two data types together in order to provide more accurate energy consumption predictions and generalizable results. |
| Keywords: | Energy Consumption; Energy Efficiency; gray-box based model; Machine Learning |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_255&r=ene |
| By: | Kreibich, Nico; Schulze-Steinen, Max |
| Abstract: | This policy brief explores different options for the EU to promote the integrity of corporate climate action through activities within as well as outside the EU and partially making use of the Article 6 infrastructure. Taking into consideration the new framework conditions established with the adoption of the Paris Agreement, the paper outlines different options of how the EU could push towards more integrity and fight greenwashing. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuprep:279529&r=ene |
| By: | Calel, Raphael; Dechezlepretre, Antoine; Venmans, Frank |
| Abstract: | Carbon markets have emerged in recent decades as one of the most important tools for curbing industrial greenhouse gas emissions, but they present a number of novel enforcement challenges as compared to more conventional pollution regulations—new regulators with narrow authority, lack of legal precedent, and more. To shed light on the practical issues involved in policing carbon markets, we present the first comprehensive analysis of the EU Emissions Trading System, a single program that was policed by 31 different national regulators. We find generally high rates of compliance coupled with low rates of enforcement, a pattern that is known in the literature as ‘Harrington’s paradox.’ Variation in the probability and severity of fines explain just one tenth of the variation in compliance rates. Meanwhile, other enforcement strategies that have been pointed to as resolutions to Harrington’s paradox in other applications, such as ‘naming and shaming, ’ appear to have had little discernible effect. |
| Keywords: | pollution control; compliance; enforcement; cap-and-trade |
| JEL: | Q50 Q52 C14 |
| Date: | 2023–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120565&r=ene |
| By: | Dennis Aldenhoff; Björn-Martin Kurzrock |
| Abstract: | Limited economic feasibility due to high investment costs and relatively small energy cost savings is seen as a major reason for low refurbishment rates of the building stock in many countries. Improving economic feasibility can therefore be essential to grow refurbishment rates. Carbon tax or funding grants are possible ways to achieve this. Furthermore, the cost-effectiveness of energy-efficient modernization depends on the necessity for refurbishment. If refurbishment measures are necessary, additional energy-efficient modernization can be carried out at comparatively low cost. Accordingly, modernizations are strongly dependent on the refurbishment cycle of the building. Based on a self-developed housing stock model for Germany, this paper presents a modeling approach to link the influence of the economic efficiency of modernizations on the modernization rate in the housing stock. This makes it possible to investigate the effects of adjustments to the economic framework (e.g., carbon tax or funding grants). This further allows the identification of target-oriented economic framework conditions for the transformation to a climate-neutral housing stock. The modeling results suggest that modernizing all existing buildings by 2045 would require unrealistically high economic incentives. In particular, the efficiency of pulling instruments such as funding grants decreases with the amount of funds used, since the share of funds allocated to those already willing to modernize increases steadily. Additionally, the economic obstacles would be particularly high for younger buildings, which have significantly lower energy savings potential, and for buildings that do not require refurbishment. Instead, the model is used to show how a successful transformation to a climate-neutral housing stock in Germany can be achieved with a mix of measures consisting of legal regulations and subsidies that address the current weak points. The results are also relevant to housing markets in Europe and beyond. |
| Keywords: | Carbon tax; climate goals; Energetic refurbishments; housing stock |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_177&r=ene |
| By: | Jafarov, Jafar (Georgia State University); Singh, Tejendra P. (Georgia State University); Sahoo, Soham (Indian Institute of Management Bangalore) |
| Abstract: | We investigate how air pollution impacts outdoor activity avoidance, leveraging changes in local wind direction in an instrumental variable setup for causal identification. Our findings reveal a substantial reduction in time spent outdoors during polluted days, mainly driven by decreased engagement in employment-related activities. This effect varies significantly across age, education level, usual principal activity status, consumption expenditure, and residential location. Moreover, reduced outdoor time due to air pollution can potentially promote a more equitable allocation of unpaid caregiving responsibilities within households via increased male involvement. Our results rule out information provision as the primary mechanism and remain robust under various sensitivity tests. |
| Keywords: | air pollution, time-use, labor supply, intrahousehold bargaining, avoidance behavior, India |
| JEL: | D13 J22 O13 Q53 Q56 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16552&r=ene |
| By: | Leonelli, Giulia Claudia |
| Abstract: | The EU proposal for a carbon border adjustment mechanism (‘CBAM’) has triggered a lively academic and policy debate. In June 2022, the European Parliament put forward amendments regarding the potential introduction of export rebates under the EU Emission Trading System (‘ETS’) and the CBAM. This article focuses on this specific proposal, enquiring into the WTO law compatibility of ETS/CBAM export rebates. First, it enquires whether the ‘pecuniary burden’ associated with compliance with the CBAM would qualify as a ‘charge’ that is ‘equivalent to an internal tax’ and that is ‘imposed consistently with Article III:2 GATT’. Second, it suggests that the ‘pecuniary burden’ associated with compliance with the ETS/ CBAM is unlikely to qualify as an adjustable product tax; the analysis draws on a close examination of relevant provisions in the General Agreement on Tariffs and Trade (GATT) 1994 and the Agreement on Subsidies and Countervailing Measures (‘SCMA’). Finally, the article develops some brief considerations on the detrimental environmental effects of export rebates. As the article concludes, the regulatory design of the CBAM is not perfect; export rebates, however, would make this scheme considerably worse. |
| Keywords: | agreement on Subsidies and Countervailing Measures; border tax adjustment; carbon border adjustment Mechanism; carbon border measures; charge; emission trading system; export rebates; GATT 1994; tax |
| JEL: | J1 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120318&r=ene |
| By: | Senni, Chiara Colesanti; Pagliari, Maria Sole; van 't Klooster, Jens |
| Abstract: | This paper investigates the climate impact of central bank refinancing operations, with a focus the ECB’s TLTRO III program. Notably, we construct a novel database that combines i) confidential data on loans granted by EU banks to non-financial corporations; ii) confidential data on TLTRO III participation and iii) data on sectoral emissions. We find that the emissions content of bank loans granted over the TLTRO III reference period amount to 8% of overall Euro Area 2019 emissions and that more than 80% of total cumulated loans issued in the reference period was directed towards polluting companies. We then investigate the effectiveness of a green credit easing scheme via a general equilibrium model. Our findings are twofold: first, the central bank policy can increase the costs for lending to polluting companies, thus re-directing loans to less-polluting firms; second, the financial stability implications of such a policy should be carefully considered. Finally, we address legal and operational challenges to such a policy by outlining three alternative ways of implementing a “green” TLTRO programme. |
| Keywords: | TLTRO; CO2 emissions; transition risk; monetary policy; financial stability |
| JEL: | E40 E50 Q50 Q54 |
| Date: | 2023–05–31 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120562&r=ene |
| By: | Coppens, Léo; Venmans, Frank |
| Abstract: | Two approaches are predominant in climate models: cost-benefit and cost-effectiveness analysis. On the one hand, cost-benefit analysis maximises welfare, finding a trade-off between climate damages and emission abatement costs. On the other hand, cost-effectiveness analysis minimises abatement costs, omits damages but adds a climate constraint, such as a radiative forcing constraint, a temperature constraint or a cumulative emissions constraint. These constraints can be applied from today onwards or only from 2100 onwards, allowing to overshoot the target before 2100. We analyse the impacts of these different constraints on optimal carbon prices, emissions and welfare. To do so, we fit a model with abatement costs, capital repurposing costs (stranded assets) and technological change on IPCC and NGFS scenarios. The welfare-maximizing scenario reaching 1.5°C in 2100 has almost no net negative emissions at the end of the century (-2GtCO2/y). A constraint on cumulative emissions has the best welfare properties, followed by a temperature constraint with overshoot. A forcing constraint with overshoot has insufficient early abatement, leading to a substantial welfare loss of $29 Trillion, spread out over the century. As to the paths reaching 2°C, all cost-effectiveness analysis abate too late, but the welfare impact of this dynamic inefficiency is milder. Again, a forcing constraint with overshoot scores worst. |
| Keywords: | climate change mitigation; targets formulation; integrated assessment models; optimal abatement path; cost-benefit; cost-effectiveness; welfare; negative emissions |
| JEL: | Q52 |
| Date: | 2023–10–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120567&r=ene |
| By: | Ryou, Kwang Ho (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Jieun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 주요 에너지 생산국의 자원 무기화와 이에 따른 천연가스 가격 변동폭 확대로 글로벌 에너지 안보 위협이 크게 확대된 가운데, 최근 천연가스전 탐사 및 개발 사업이 활발히 이루어지고 있는 동지중해 지역이 새로운 에너지 허브로 주목받고 있다. 본 연구에서는 동지중해 지역 내 천연가스 개발과 이를 둘러싼 인프라 구축 및 파생 산업 육성 현황을 살펴보고 우리나라와의 협력 시사점을 도출하였다. This study explores the current status of natural gas development in the Eastern Mediterranean region and derives its implications for Korea. Our approach encompassed a thorough review of pertinent literature and statistical data, and insightful interviews with local government officials and industry experts, conducted through field surveys and seminars. The key findings of this study are summarized as follows: First, natural gas development in the Eastern Mediterranean region has significantly increased its prominence within the global natural gas market. Egypt, holding largest natural gas reserve in the region, now surpasses major natural gas importers of Korea, including Malaysia, Oman, and Indonesia. The total natural gas reserves in the Eastern Mediterranean region are estimated at 119.1Tcf, 41.1% more than that of Australia, Korea’s largest natural gas importer. It is estimated that there are 286.2Tcf of undiscovered natural gas resources buried along the Eastern Mediterranean coast. This means that only 29.4% of the region’s total natural gas reserves have been found to date. Second, countries in the Eastern Mediterranean have made significant efforts to develop their domestic natural gas resources and to strengthen both domestic and international cooperation. In particular, Egypt, Israel, and Cyprus, major natural gas holders in the region, have been actively pursuing exploration and development and related infrastructure projects to expand their natural gas production and export capacity. Efforts are being made to promote natural gas-related industries such as petrochemicals and hydrogen. In 2019, a regional consultative body for natural gas development, the East Mediterranean Gas Forum, was launched. Since then, through a number of meetings, countries in the region have gathered to discuss specific plans and implement methods for natural gas development. There is also cooperation between Egypt and Israel in the natural gas supply chain, using Egypt’s natural gas liquefaction facilities.(the rest omitted) |
| Keywords: | 천연가스(Natural Gas); 에너지 안보(Energy Security); 동지중해(Eastern Mediterranean Region); 이집트(Egypt); 이스라엘(Israel); 사이프러스(Cyprus); |
| Date: | 2023–10–20 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2023_003&r=ene |
| By: | Alejandro Fernandez |
| Abstract: | Improving the energy efficiency of the built environment is a critical element of the UK’s strategy to achieve net-zero emissions by 2050. Enhanced standards in new homes and subsidies for renovation are among the measures put in place to encourage energy efficiency. On the one hand, a literature stream has focused on the heterogeneity of energy savings across different household types and building typologies to assess renovations. On the other hand, the hedonic pricing literature has delved on the existence of energy premiums across different housing markets. While the distributional impact of different fabric interventions has recently become a focus of research, this has not been the case for increases in house prices across housing quality and age groups. It is in this context that this paper poses the question: “How do increases in house prices affect consumption across age groups, tenure and dwelling energy performance?” To assess the relationship between house prices and consumption, this paper draws from a body of economic research dealing with the Marginal Propensity to Consume (MPC) out of house price increases. This paper builds on a combination of two micro cross-sectional datasets: the English Housing Survey (EHS), including data on the housing stock and its inhabitants, and the Living Costs and Food Survey (LCFS), which holds detailed financial and consumption information. We find that older households, more likely to own outright and live in less energy-efficient houses, have increased their consumption in line with rises in house prices. On the contrary, middle-aged groups, more likely to rent and own with a mortgage, have not increased their consumption in line with house prices. The youngest group does seem to increase their consumption with raises in housing prices but less than the oldest one. Noticeably, improvements in the built environment related to energy efficiency drive consumption down since improved fabric standards result in increased housing costs that are compensated by reduced consumption. Based on the heterogeneity of consumption responses to house price increases, this paper contends that an energy transition model that subsidises older households to retrofit their homes is regressive by strengthening the wealth of older households while penalising younger ones with less housing equity and larger housing needs. The distributions of housing wealth and marginal propensity to consume are particularly relevant as grants and subsidised loans dependent on fabric conditions are likely to have heterogeneous effects over generations reinforcing the concentration of assets among older households. |
| Keywords: | Age Groups; Consumption; Energy Efficiency; House Prices |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_68&r=ene |
| By: | Ryan Alyamani; Dimitris Pappelis; Maria Kamargianni (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This study aims to contribute to the literature by shedding light on consumers’ acceptance of electric vehicles (EVs) in Riyadh and their potential response to adoption incentives. A stated preference experiment (SPE) was developed and then incorporated into an online stated preference survey targeting adult residents of Riyadh to collect 703 responses. Accordingly, a mixed logit model was constructed, complemented by other survey insights to derive the final findings of this paper. |
| Keywords: | Agent based modeling, Electric Vehicles, Autometrics |
| Date: | 2023–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp20&r=ene |
| By: | Borghesi, Simone; Pahle, Michael; Perino, Grischa; Quemin, Simon; Willner, Maximilian |
| Abstract: | Having experienced low prices for about a decade, the European Union Emissions Trading System has been supplemented with the market stability reserve (MSR) that adjusts the supply of allowances to market outcomes. We critically review the literature assessing the performance of the MSR against several policy objectives. In doing so, we cover both conceptual aspects and quantitative assessments. We conclude by pointing out important policy implications and open issues for further research. |
| Keywords: | climate policy; emissions trading; EU ETS; overlapping policies; stability mechanism |
| JEL: | J1 |
| Date: | 2023–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120548&r=ene |
| By: | Thomas Lefebvre; Barbara Castillo Rico |
| Abstract: | The "Climate and Resilience" law aims to accelerate the ecological transition of French society and economy. All sectors are concerned: agriculture and transport, among others, but also housing. More specifically, this law targets landlords of the most energy-consuming properties by banning them from the rental market. In France, according to the regulation, more than 5.2 million dwellings are considered inefficient and won’t be allowed to be rented in 2028. The first rental restriction of this law came into effect in January 2023: the worst housing in terms of energy performance cannot be rented anymore. This represents around 500, 000 housing units. In this paper we assess the impact of this new regulation on the french real estate market. Do landlords renovate their housing or do they prefer to sell? Do their behavior have an impact on sales and rental prices ? What is the perception of the owners about these regulatory changes in favor of energy transition in housing? Based on the observation of 5 million listings published on the french leading professional real estate portal between 2018 and 2022 (SeLoger.com) and a survey that collected 5, 000 responses related to the perception of the impact of the law on the decision process to sell or buy a property, our results suggest that energy consumption of the dwelling has started to become a valuation and selection criteria to buy and sell on the french real estate market. Our results show a significant increase in the number of sales of low-energy homes since 2021: 19.2% of the properties listed on the market for sale in 2022 are not energy efficient versus 11% in 2021. In addition, dwellings with high energy consumption are listed on the market with a selling price of -3.9% less expensive than an equivalent property with better energy efficiency. Therefore, there is a significant difference in the evolution regarding the energy efficiency score. In France, prices of properties with higher energy efficiency have increased on average by +3.7% since July 2021, which is two times less than the other properties (+7%) |
| Keywords: | Housing Policy; Sustainable Real Estate; Valuation |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_195&r=ene |
| By: | Ulrich Bogenstätter; Rabih Slim |
| Abstract: | To implement economic strategies that consider the entire life cycle of a property, criteria such as sustainability, agility, usability, safety, time, and cost are crucial. The literature shows that real estate and facilities management researchers strive to develop agile and easy-to-use calculation methods to achieve CO2 reduction goals and better account for building life-cycle costs by choosing green and cost-effective solutions and strategies. However, few tools can address these issues by providing an integrated IT solution to determine the life cycle cost-effectiveness of construction measures through an easy and performant calculation model. For that reason, the research project on cost-benefit simulation with partners from the University of Applied Sciences Mainz and the “LBB” (State Office for Real Estate and Construction), owner of 1600 buildings in Germany, aims to develop a model for calculating the life-cycle costs, energy efficiency, and the environmental impact of buildings in monetary terms based on the “DIN” Standard Building Occupancy Costs (DIN 18960 2020-11). This paper shows a case study calculated by the new tool “NUKOSI” (Use of cost calculator and simulation) based on the Filemaker platform developed by Claris. With this database solution, existing data from the planning phase use to determine the life cycle costs of a building and to establish an ecological balance. It is, therefore, possible to carry out a study and statistical analysis of the updating of the supply variants (sale, construction, purchase, rent) and budget planning or portfolio management, which is performed easily or automatically by own or external staff. These have efficient consequences, establishing a carbon footprint oriented on the construction elements, minimizing operating costs, providing modernization and maintenance planning, and maximizing value. “NUKOSI” is used operationally by the “LBB” as an IT solution and has been tested, for example, in higher education, trade, real estate funds, and religious institutions. |
| Keywords: | carbon footprint; Facility Management; Life-cycle cost calculation; real estate management |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_73&r=ene |
| By: | Matthias Lehner; Wolfgang Brunauer |
| Abstract: | Energy performance certificates (EPCs) exist for real estate objects in many countries around the world. These documents represent a rich source of real estate information for both residential and commercial properties. Depending on the country, energy performance certificates provide detailed information on energy efficiency and pollutant emissions, as well as a wide variety of other useful data: Information on location, usage profile, year of construction, time of the last change (e.g., year of refurbishment), geometric information (lengths, areas, volumes), temperature-, climate-, heat- and ventilation-related information, information on energy generation and storage as well as information on the validity duration and the issuer. For many applications, it would be desirable to have this data available in a structured, digital form for a large number of properties. For certain applications, for example, to meet legal requirements in the area of environmental, social, and governance (ESG), having this data is mandatory. Reading this data manually from energy performance certificates proves to be very time-consuming, expensive and error-prone: Hundreds of, e.g., numerical values may have to be read out and written down without errors over a period of hours. In order to extract this data easily, quickly, cheaply and with high accuracy, DataScience Service GmbH (DSS), a real estate software company based in Vienna, Austria, has developed an application programming interface (API) that extracts all data of interest from EPCs automatically. Being able to make this data available quickly for a large number of properties opens up many possibilities for answering scientific and engineering questions in real estate economics, urban planning, energy & environmental science, and building physics, and also provides opportunities for developing practical applications in the real estate and energy industry. In this talk, we will provide a brief introduction to the API we developed for the Austrian market, which can be readily extended to support EPCs of other countries depending on market demand. |
| Keywords: | Energy Efficiency; Energy Performance Certificate; EPC; Machine Learning |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_303&r=ene |
| By: | Muhammad Aulia Anis (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada); Wisnu Setiadi Nugroho (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada); Eny Sulistyaningrum (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada) |
| Abstract: | Air pollution is a significant issue in emerging economies like Indonesia, with detrimental effects on human health. This study aimed to analyse the impact of air pollution on child development, using various datasets and employing an instrumental variable approach. The findings revealed that an increase of 1 𠜇𠑔/𠑚3 in regional PM 2.5 concentration had a significant negative effect on child growth, reducing height-for-age and weight-for-age scores by 0.08 standard deviations. No significant impact was observed on the stunting variable. The study also found that girls were particularly susceptible to impaired child development due to air pollution. These results emphasize the need for policies targeting air pollution reduction to support healthy child development, especially in low-income households. |
| Keywords: | Air Pollution, Child Development, PM 2.5, Instrumental Variable |
| JEL: | I15 Q51 Q53 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:gme:wpaper:202308009&r=ene |
| By: | Thomas Hagedorn (Institute of Transport Economics, Muenster); Till Kösters (Institute of Transport Economics, Muenster); Jan Wessel (Institute of Transport Economics, Muenster); Sebastian Specht (Institute of Transport Economics, Muenster) |
| Abstract: | We estimate the relationship between fuel prices and driving speeds on the German Autobahn. The speed price elasticities are higher on sections without a speed limit (-0.047) than on those with a limit (-0.033), thus underlining the distortionary effect of speed limits on previously estimated elasticities. We also find higher elasticities when drivers are alone on the road, for high prices, and slower drivers. Based on the undistorted speed price elasticities, we estimate the short-run fuel demand elasticity and the revealed value of time (20.71 Euro/h; 83% of gross wage), hence providing valuable input for policymakers and infrastructure planning. |
| Keywords: | fuel prices, speed price elasticity, no speed limit, short-run fuel demand elasticity, value of time, German Autobahn |
| JEL: | R41 R48 Q41 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:mut:wpaper:39&r=ene |
| By: | Ralf Martin; Dennis Verhoeven |
| Abstract: | Innovation policy faces a tradeoff between growth and climate objectives when the knowledge spillover externality from clean innovation is low compared to other sectors. To make such a comparison, we use patent data to estimate field-specific spillover returns generated by R&D support. Supporting Clean presents itself as a win-win opportunity, yielding global returns one-eighth higher than those of an untargeted policy. Nevertheless, only a modest portion of the returns stays within country borders, raising the question of whether national interests distort efficient allocation. Our policy simulations underscore the benefits of supranational coordination in clean innovation policy, potentially boosting returns by approximately 25% for the EU and over 60% globally. Moreover, the EU benefits strongly from US Clean innovation spillovers, impacting the debate on the Inflation Reduction Act. Overall, we identify no explicit innovation policy tradeoff in tackling the twin challenges of economic growth and climate change but emphasize the necessity for international cooperation. |
| Keywords: | innovation, knowledge spillovers, clean technology, innovation policy, green transition, net-zero, patent data, Economic geography, Green Growth, Productivity, Technological change |
| Date: | 2023–07–12 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1933&r=ene |
| By: | Nandi Moksnes; William Usher |
| Abstract: | An increasing number of studies using energy system optimisation models are conducted with higher spatial and temporal resolution. This comes with a computational cost which places a limit on the size, complexity, and detail of the model. In this paper, we explore the relative importance of structural aspects of energy system models, spatial and temporal resolution, compared to uncertainties in input parameters such as final energy demand, discount rate and capital costs. We use global sensitivity analysis to uncover these interactions for two developing countries, Kenya, and Benin, which still lack universal access to electricity. We find that temporal resolution has a high influence on all assessed results parameters, and spatial resolution has a significant influence on the expansion of distribution lines to the unelectrified population. The larger overall influence of temporal resolution indicates that this should be prioritised compared to spatial resolution. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.10518&r=ene |
| By: | Jozef Barunik; Lubos Hanus |
| Abstract: | We propose a novel machine learning approach to probabilistic forecasting of hourly intraday electricity prices. In contrast to recent advances in data-rich probabilistic forecasting that approximate the distributions with some features such as moments, our method is non-parametric and selects the best distribution from all possible empirical distributions learned from the data. The model we propose is a multiple output neural network with a monotonicity adjusting penalty. Such a distributional neural network can learn complex patterns in electricity prices from data-rich environments and it outperforms state-of-the-art benchmarks. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.02867&r=ene |
| By: | Alassane Drabo; Kodjovi M. Eklou; Patrick A. Imam; Mr. Kangni R Kpodar |
| Abstract: | This paper investigates the impact of fuel price increases on social unrests in addition to the macroeconomic, social and institutional factors driving this relationship. Using the IV fixed-effect estimator on a sample of 101 developing countries during 2001-2020, we find that changes in fuel prices are positively associated with the number of social unrests, mainly anti-government demonstrations. This impact is however amplified: (i) during economic downturns and periods of high exchange rate instability; (ii) when government spending is low, especially on health and education, thus suggesting that streamlining fuel subsides and diverting parts of the reform savings to the health and education sectors is an appropriate policy that could appease social tensions; (iii) in countries with high income inequality, low institutional quality and high level of corruption. The results are robust to a battery of tests, including the use of an instrumental variable approach to address reverse causality concerns given that social unrests could also prompt a freeze in fuel prices. We also find consistent results using either changes in diesel or gasoline prices. Overall, the findings of the paper provide support to the grievance and deprivation theory in explaining the association between fuel price increases and social unrests, but fail to find evidence for the resource theory and the theory of political opportunities. |
| Keywords: | Retail fuel prices; Social unrests; Public spending; Institutions |
| Date: | 2023–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/228&r=ene |
| By: | Georgia Warren-Myers |
| Abstract: | Sustainable and energy efficient homes in Australia are much needed in the objective to meet carbon targets and create sustainable homes that can ensure a resilient future. Despite an extensive amount of research, market implementation has been slow due to a limited regulatory regime and limited engagement by home builders. Many builders claim consumers have little interest and are not willing to pay, despite a number of consumer studies finding the opposite. A possible barrier is the communication between consumers and builders about sustainability and energy efficiency. Consumers typically have limited understanding of the home building process per se, let alone understand the nuances of sustainability and energy efficiency considerations for a new home. Thus their trust is in the builder to provide them with the information needed and offer appropriate products. The question of the research is, what kind of information is available and what is the quality of the information provided, particularly through key communication channels like websites, blogs and social media? This research used content analysis techniques to investigate the online communication channels of 23 New South Wales (Australia) volume home builders initially in 2020 and again in 2022. The study found the level of content and its quality to be non-existent or quite low, leaving consumers to trust that simple assignations that the home is sustainable, without explanation as to how it is more sustainable or energy efficient. In the repeat analysis of 2022 the industry appeared to have retracted much of the limited sustainability and energy efficiency messaging across their online platforms. The research identified opportunities for the volume housing industry, to enhance their communication capabilities and provide meaningful information that may assist in generating the change required. |
| Keywords: | Communication; Construction; housing; sustainability |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_34&r=ene |
| By: | Fakhri Hasanov; Muhammad Javid; Heyran Aliyeva (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Diversification of the economy, including exports, is a core goal of Saudi Vision 2030 (SV2030). The petrochemical sector can considerably contribute to the Kingdom’s diversification strategy, as it holds a substantial share in non-oil exports. First, this study econometrically estimated how exports of chemicals and rubber-plastics were shaped by theoretically articulated domestic and foreign factors over the 1993-2020 period. Then, the estimated export equations were integrated into a general equilibrium model, called the King Abdullah Petroleum Studies and Research Center (KAPSARC) Global Energy Macroeconometric Model (KGEMM), and a scenario analysis was conducted for the diversification implications of foreign and domestic price shocks until 2035. |
| Keywords: | Agent based modeling, Analytics, Applied Research, Autometrics |
| Date: | 2023–10–22 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp21&r=ene |
| By: | Raghu Dharmapuri Tirumala |
| Abstract: | Historically, sustainability in real estate has centered on green buildings and environmentally friendly structures. However, these efforts have often been confined to individual buildings, overlooking the broader ecosystem. This research paper expands the focus, investigating how various stakeholders in the real estate sector, including developers, financiers, suppliers, and advisors, are addressing environmental challenges. Utilizing the Global Reporting Initiative (GRI) as a framework, the paper analyzes publicly available company disclosures. The results highlight a strong emphasis on emission and energy-related indicators, while other vital aspects such as biodiversity, supplier assessment, and materials are often neglected. The paper also explores regional variations and alignment with global standards, providing insights into the current state of sustainability reporting within the industry. By identifying areas for improvement and underscoring the importance of a multi-stakeholder approach, this study contributes valuable perspectives to the ongoing dialogue on environmental stewardship in real estate and offers actionable recommendations for enhancing transparency and sustainability practices. |
| Keywords: | Australia; Environmental disclosure; India; real estate; Stakeholders; Transparency |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:afr:wpaper:afres2023-047&r=ene |
| By: | Franz Fuerst; Xinyan Huang |
| Abstract: | This study details the findings of a study that seeks to establish how minimum energy efficiency standards have affected the domestic private rental sector using data from England and Wales. The research questions studied mainly concern rent affordability both in the general market as well as above and below the energy efficiency thresholds for legally renting out space under the new regulations. The present study also estimates the effect the policy has had on the attractiveness of investing into rental properties relative to other asset classes and the owner-occupied property market segment. The main findings are: Rents of F/G rated properties were lower before and after MEES implementation compared to higher EPC grades which is in line with previous research During the implementation period, an additional rental discount to properties in the F/G band can be detected with increasing magnitude over time. Above-threshold properties in the EPC E band and/or D show a moderate rent increase in response to MEES No signs of a significant sell-off of properties from the private rental sector into the policy-neutral owner-occupied market segment are detected. The main finding is hence that substandard energy efficiency as indicated by an F or G EPC rating has become significantly lower over time and the evidence suggests that the introduction of MEES has contributed to this trend. Although causal inference is complicated by the staggered introduction of standards which does not permit a clear separation between a pre and post MEES period, it appears that government intervention aimed at upgrading lowest EE has at least supported and augmented a trend towards higher energy efficiency, even if this upgrading process may not have been entirely due to this policy instrument. Concerns about MEES impacting negatively on rental affordability are not supported by the present analysis although some moderate uplifts are found for D/E-rated properties and further research will seek to corroborate these first findings. |
| Keywords: | Affordable Housing; climate change policy; housing market policy; Private Rental Market |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_340&r=ene |
| By: | Edda Donati |
| Abstract: | The research analyzes the business models adopted in several European countries to pursue the energy refurbishment of the building stock. The aim is to identify the best practices that allow the development and diffusion of the circular economy in the building industry. After the enactment of Directive 2010/31/EU, the energy efficiency of the building stock has become a central theme to the policies of the governments, which have promoted subsidies and tax incentives to encourage efficiency-enhancing works. Some countries immediately adopted efficiency policies aimed at pursuing this objective, obtaining satisfactory results, such as Belgium, France, Germany, Holland, Spain and Portugal. In the current phase of the research, after the literature review, data is collected for specific case studies concerning efficiency improvement works that took place in the analyzed countries. By matching the evidence from the literature review and the case studies, the most used business models are identified: the One-stop shop model, the Energy Performance Contracting (EPC) model and the ESA/RENESCO model. The first one is characterized by the presence of a single contractor (ESCo), which deals entirely with financing the efficiency improvement works and their implementation. The customer interfaces exclusively with the latter and is repaid for the work carried out once the work is completed. The second business model, EPC, which still features the presence of a contractor, offers advantages in terms of flexible sources of efficiency, contract integrity, risk sharing and the ability to penetrate the energy efficiency market. The contractor finances the intervention, assumes both the financial and performance risks and is repaid by future cost savings if these are higher than originally agreed. Finally, the third model is again characterized by the presence of a single contractor (ESCo) which provides the customer with retrofit interventions and the energy performance guarantee for specific services exceeding 15 years in exchange for the purchase by the latter. For each of the three models, the elements that constitute their archetype are identified: Value Proposition, Supply Chain, Customer Interface and Financial Model. The forthcoming research period at a construction company is meant to identify which of the best practices has the greatest expectation of success in the Italian context. |
| Keywords: | building industry; Business Models; Circular economy |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_26&r=ene |
| By: | Picard, Julien; Banerjee, Sanchayan |
| Abstract: | Fighting the climate crisis requires changing many aspects of our consumption habits. Previous studies show that a first climate-friendly action can lead to another. Does deciding not to eat meat increase our willingness to do more for the environment? Can encouraging vegetarianism alter this willingness? Using an online randomised control trial, we study the side effects of a social norm nudge promoting vegetarianism on environmental donations. We develop an experimental design to estimate these side effects and a utility maximisation framework to understand their mechanisms. Using an instrumental variable, we find that choosing not to eat meat increases donations to pro-environmental charities. We use machine learning to find that the social norm nudge crowds out donations from the population segment prone to choosing vegetarian food after seeing the nudge. However, the nudge led another group to make less carbon-intensive food choices without affecting their donations. Our results suggest that whilst social norm nudges are effective on specific population segments, they can also reduce the willingness of some groups to do more. |
| Keywords: | social norm; meat; climate change; behavioural spillovers; side effects |
| JEL: | C30 C93 D91 Z10 |
| Date: | 2023–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120566&r=ene |
| By: | Béatrice Parguel (DRM - MLAB - Dauphine Recherches en Management - MLAB - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Guillaume Johnson (DRM MOST - DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In a two-part article, we're going to understand if advertising can be saved from "greenwashing". The first part will explain what "greenwashing" is and how green claims work. The second part will then understand why "greenwashing" is a problem and – most importantly – if and how we can solve it. |
| Keywords: | Green advertising, greenwashing, green claims, sustainability |
| Date: | 2023–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04258804&r=ene |
| By: | Lydia Dimitrakopoulou; Christos Genakos; Themistoklis Kampouris; Stella Papadokonstantaki |
| Abstract: | We examine how competition affects VAT pass-through in isolated oligopolistic markets as defined by the Greek islands. Using daily gasoline prices and a difference-in-differences methodology, we investigate how changes in VAT rates are passed through to consumers in islands with different market structure. We show that pass-through increases with competition, going from 50% in monopoly to around 80% in more competitive markets, but remains incomplete. We also discover a rapid rate of adjustment for VAT changes, as well as a positive relationship between competition and the rate of price adjustment. Finally, we document higher pass-through for products with more inelastic demand. |
| Keywords: | VAT rates, Greek islands, gasoline, competitive markets, monopoly |
| Date: | 2023–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:078&r=ene |
| By: | Saul Nurick; Andrew Thatcher |
| Abstract: | Green building advocates have stated that improved productivity is linked to green buildings, specifically due to enhanced indoor environmental quality (IEQ). Previous research indicated mixed results in this regard, and therefore conjecture still exists. The purpose of the research was to examine both individual productivity and organisational performance of occupants and businesses, respectively, located in green certified office buildings in South Africa. The research focused on financial services companies (FSCs), where each FSC offered a low, moderate and high risk investment product. Quantitative research was conducted on ten FSCs located in nineteen green certified and ten FSCs located thirteen conventional (non-green) office buildings, to assess organisational performance. Qualitative research was conducted in the form of semi-structured interviews across two FSCs comprising fifteen knowledge workers, to assess individual productivity. The research was conducted within the context of a theoretical framework that focused on the implementation of green building features and initiatives (GBFIs) that focus on IEQ. There was a statistically significant positive relationship (high risk products) when comparing annualised returns to IEQ (Pearson’s Correlation). Interview respondents indicated that location and amenities contributed to organisational culture, collaboration spaces, employee attraction and retention, and safety. These attributes were contributed in some degree to individual productivity. The results continue to indicate that the relationship between enhanced IEQ and individual productivity and organisational performance are not absolute, as there may be external contributing factors. |
| Keywords: | Green building features and initiatives (GBFIs); Indoor environmental quality (IEQ); Performance; Productivity |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_17&r=ene |
| By: | Lena Anayi; Nicholas Bloom; Philip Bunn; Paul Mizen; Gregory Thwaites; Ivan Yotzov |
| Abstract: | We use data from a large panel survey of UK firms to analyze the economic drivers of price setting since the start of the Covid pandemic. Inflation responded asymmetrically to movements in demand. This helps to explain why inflation did not fall much during the negative initial pandemic demand shock. Energy prices and shortages of labor and materials account for most of the rise during the rebound. Inflation rates across firms have become more dispersed and skewed since the start of the pandemic. We find that average price inflation is positively correlated with the dispersion and skewness of the distribution. Finally, we also introduce a novel measure of subjective inflation uncertainty within firms and show how this has increased during the pandemic, continuing to rise in 2022 even as sales uncertainty dropped back. |
| Keywords: | price inflation, data, panel survey, UK firms, Covid, pandemic, energy prices |
| Date: | 2022–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:poidwp:058&r=ene |