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on Energy Economics |
| By: | Krahé, Max; Heilmann, Felix |
| Abstract: | Energy made an outsized contribution to the recent inflationary wave in Europe: On average, 50 percent of year-on-year inflation in 2022 was directly due to energy, the vast majority of which was due to fossil fuel price rises. Additional inflationary effects followed from indirect impacts on other prices, especially food. Renewable energy can help fight inflation both in the short and in the long run. In the short run, faster renewable energy deployment saved European consumers around 95 billion euro between 2021 and 2023 and reduced electricity prices by up to 15 percent (IEA 2023c). In the long run, the secular downwards trend in renewable energy costs suggests further cost saving potential and, once the transition is complete, price stability. The situation is more complicated in the mid-transition. Three challenges appear salient: As long as electricity prices remain linked to fossil fuel prices, especially gas, any increase in fossil fuel price volatility spills over into the pricing of electricity. Supply chain risks may materialize as renewable energy deployment accelerates. And if investment in grids, energy storage, and supply- and demand-side flexibility fails to keep up with accelerating renewable deployment, further bottlenecks and price spikes may emerge. However, these risks are not set in stone. The extent to which they will materialize will depend on today's policy choices. While further research and policy action is needed on the mid-transition, the overall picture that emerges from our analysis is therefore clear: fossil fuels added to the economic and political instability of recent years. Replacing them with renewables can become a pillar of future stability. |
| Keywords: | Inflation, FossilFuels, RenewableEnergy, Europe |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dzimps:279870&r=ene |
| By: | Jon Pareliussen; Axel Purwin |
| Abstract: | Sweden is among OECD best performers in reducing greenhouse gas emissions, much thanks to a comprehensive policy framework and relatively efficient policies. There is nonetheless room to further improve consistency of targets and policies, notably for transport, agriculture and carbon removals. Sweden’s long record as a climate frontrunner is also threatened by policy changes moving the 2030 reduction target out of reach unless compensated by new ambitious measures. A green industrial revolution is gaining momentum in Sweden’s north, fuelled by an abundant supply of clean electricity. Considerable investments in electricity generation, storage and transmission are needed, but long planning and permitting procedures slow many key projects down. The green revolution depends on people and skills to run industry and complementary public services. This is a challenge for northern regions and municipalities already facing labour shortages. |
| Keywords: | Climate policy, energy system, industrial transition, skills |
| JEL: | Q01 Q28 Q48 Q50 Q58 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1778-en&r=ene |
| By: | Shahid Hasan (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Many policymakers now see the use of low-carbon hydrogen as a strong contender in terms of how to achieve climate neutrality goals. Currently, hydrogen is used in refinery processing, ammonia production, or methanol production as feedstock, where no other alternatives exist. However, new uses for hydrogen are being explored in the industry, transport, and electricity sectors, which together account for approximately 85% of global energy-related CO2 emissions. |
| Keywords: | Battery storage, Benefits of electricity trade, Climate change |
| Date: | 2023–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp22&r=ene |
| By: | Fateh Belaid; Mohamad Hejazi; Puneet Kamboj; Fatih Yilmaz (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This article examines the complex issue of energy poverty and its various dimensions, including energy access and affordability. It explores the challenges of addressing energy poverty and the trade-offs that may exist between energy poverty and climate change policy. |
| Keywords: | Energy Poverty, Energy access, Climate change policy |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp18&r=ene |
| By: | Muhammad Javid (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The Kingdom of Saudi Arabia has taken many decisive steps toward a more sustainable future, in line with its Vision 2030, including the use of clean energy, offsetting of emissions, and protection of the environment. In this context, Saudi Arabia has set an ambitious target to reduce its carbon emissions by 278 mtpa by 2030. The objective of this study is to investigate the possibility of interfuel substitution in Saudi Arabia’s industrial sector and to identify the role of substituting fossil fuel with carbon-neutral fuel, such as electricity, in meeting the CO2emissions target. A ridge regression method is used to estimate the parameters of the translog production function for the period 1990–2020. |
| Keywords: | Climate change mitigation, Carbon-neutral fuel, Electricity, Emmission offset |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp25&r=ene |
| By: | Faus Onbargi, Alexia; Dombrowsky, Ines |
| Abstract: | Farmers have started to adopt information and communication technology (ICT), which has considerable potential to impact farm performance. This study uses data from a 2018 survey of 763 vegetable smallholder farms in China to estimate the impact of ICT on technical efficiency (TE). We adopt propensity score matching to create a balanced sample of ICT users and non-users and a stochastic frontier model with sample selection correction to compare the two groups' TE. After accounting for self-selection bias from both observables and unobservables, the study finds a positive effect of ICT use on TE. On average, the TE score of ICT users is 0.64, whereas ICT non-users have a lower score of 0.57. A quantile regression analysis further reveals a heterogeneous impact of ICT on TE, with the largest effects among less efficient farms. These results suggest that vegetable farmers' performance could be fostered by the widespread use of ICT.There has been a significant policy shift in Germany's energy transition - the Energiewende - resulting from Russia's invasion of Ukraine and the subsequent war. The Easter Package, rolled out in Spring 2022, set a series of ambitious renewable energy targets and laws to enable both climate action and energy security. These are to be implemented in tandem with existing laws such as the Coal Exit Law and the Federal Climate Change Act. Aligning policies and targets to reduce greenhouse gas (GHG) emissions and ensure energy reliability and affordability requires concerted policy coherence, a policy process to pursue multiple goals in a way that maximises synergies and minimises trade-offs. Reducing trade-offs (and their consequences) is especially crucial if the energy transition is to be just for all and become a vehicle towards a broader Just Transition, as well as to achieve the aims of the 2030 Agenda for Sustainable Development (including "leaving no one behind") and the Paris Agreement. This policy brief first examines some of the most important policies - and (in)coherences - pertaining to the Energiewende, with a specific focus on the state of North Rhine-Westphalia (NRW), one of Germany's main coal-mining regions. The brief then goes on to explore the main political drivers - through the lens of ideas, interests and institutions - of policy (in)coherence in two parallel Energiewende policy processes that are particularly relevant to the electricity sector: the coal phase-out and the phase-in of onshore wind. Although solar power and green hydrogen are also key to a successful Energiewende, these are not the subject of this brief. Our insights derive from policy document analysis and 28 semi-structured interviews. To move towards a Just Transition, the following recommendations are made to promote coherence in Germany's Energiewende and inform the ongoing revision of the NRW Sustainability Strategy (last updated in 2020). The recommendations may also be of interest to the newly appointed NRW Advisory Board on Sustainability: Mitigate ideological, institutional and interest-based barriers to ambitious climate action by ensuring a political commitment to policy coherence. In NRW in particular, this means meeting recent promises to deliver a coal phase-out by 2030 and lift the 1, 000 metre (m) "rule" (i.e. 1 kilometre (km) between residential buildings and wind turbines), as well as mitigating arising conflicts between residents' interests, particularly around the sharing of profits. Such commitments should be made explicit in the revised NRW Sustainability Strategy and legislated. Promote greater political equality in all Energiewende policy-making decision processes at all governance levels (i.e. federal, state and municipal) in consultative and participatory mechanisms towards greater energy democracy. Reducing political in-equality is key to increase the public's acceptance of renewable energy projects (e.g. through cooperatives) - one of the aims of the latest NRW Sustainability Strategy. Integrate notions of social and climate justice into Energiewende policy to ensure the German energy transition is a just one for all individuals, and not just for German coal workers. Notions of procedural, distribution and recognition justice are featured here and should be highlighted in the updated NRW Sustainability Strategy. |
| Keywords: | Energiewende, Germany, North Rhine-Westphalia, Energy transition, Coal phase-out, On-shore wind phase-in, Political inequality, Synergies, Trade-offs, Policy incoherence |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:idospb:279954&r=ene |
| By: | Gasparini, Matteo |
| Abstract: | Previous research has highlighted a positive correlation between realised returns and carbon emissions. This paper shows that this carbon premium might be partially due to mispricing produced by climate policy uncertainty. For this reason, realised returns may not be representative of expected returns. To show this, I develop an asset pricing model with uncertain expectations about the future cash flows of fossil-fuel firms; the price-dividend ratio increases with uncertainty about a climate policy regime shift. I confirm this proposition empirically using data on analysts' forecasts; I find that analysts' forecast disagreement, as a proxy for climate policy uncertainty, may explain part of the valuations of a large sample of fossil-fuel stocks. Using my model, I show with forward-looking scenarios that cash flow expectations implied in the valuations of fossil-fuel firms may be inconsistent with a net zero carbon transition. |
| Keywords: | Asset Pricing, Uncertainty, Climate Finance, Climate Change |
| JEL: | G11 G18 Q51 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:amz:wpaper:2023-23&r=ene |
| By: | Michael D. Bauer; Eric A. Offner; Glenn D. Rudebusch |
| Abstract: | The Inflation Reduction Act of 2022 (IRA) represents the largest climate policy action ever undertaken in the United States. Its legislative path was marked by two abrupt shifts as the likelihood of climate policy action fell to near zero and then rose to near certainty. We investigate equity price reactions to these two events, which represent major realizations of climate policy transition risk. Our results highlight the heterogeneous nature of climate policy risk exposure. We find sizable reactions that differ by industry as well as across firm-level measures of greenness such as environmental scores and emission intensities. While the financial market response to the IRA was economically significant, it did not lead to instability or financial stress, suggesting that transition risks posed by climate policies even as ambitious as the IRA may be manageable. |
| Keywords: | transition risk, stranded assets, event study, carbon emissions, ESG scores, green stocks, brown stocks |
| JEL: | G14 G38 Q54 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10739&r=ene |
| By: | Marie Petitet; Amro Elshurafa; Frank Felder (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Energy prices in Europe have been soaring, and policymakers are trying to find solutions to immediately contain the energy prices for end-consumers and to enhance the market design in the longer term. This paper discusses some of the current events that are facing the power sector in Europe and some challenges that may face the industry more generally in the future. Then, we propose policy recommendations in the context of Gulf Cooperation Council (GCC) countries by contrasting the power sector design in place in this region with that in the European region. |
| Keywords: | Climate change, Carbon Market, Clean technology, Alternative fuels |
| Date: | 2023–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp24&r=ene |
| By: | Clara Rabelo Caiafa; Amaro Olimpio Pereira; Henny Romijn; Heleen de Coninck |
| Abstract: | To meet climate change mitigation targets, an exponential increase in global green hydrogen trade is expected. Countries rich in renewable energy resources would be in a favourable position to become exporters, potentially bringing opportunities for socio-economic development. The Brazilian state of Ceará is developing a large-scale green hydrogen hub, which is expected to provide one-fifth of European Union (EU) imports by 2030 via the green corridor between Ceará and The Netherlands. Located in what has historically been the least-developed Brazilian region, the green hydrogen hub could bring unique opportunities for regional development in Ceará. However, while empirical studies on economic impacts from other renewable energy projects in developing economies show limited localised benefits, the potential economic co-benefits from export-oriented green hydrogen projects remains uncertain. This study combines semi-structured interviews and input-output modelling to estimate impacts on value-added, income and jobs (by gender) in Ceará according to four local content share scenarios and three renewable energy technologies (onshore wind, offshore wind and solar photovoltaics). By doing so, this study is the first to estimate the potential for economic co-benefits from export-oriented green hydrogen projects in a developing economy context, in a sub-national level, while accounting for technology- and project-specificity as well as impacts on gender inequality. Results suggest that highly internationalised scenarios, that is, with low local content shares and dominated by multinational companies, would not only present local benefits that are often an order of magnitude lower, but could, through distributional implications of employment types, also exacerbate existing income and gender inequalities. |
| Keywords: | Economic Co-benefits, Green Hydrogen, Gender, Input-Output Analysis, Regional development, Brazil |
| Date: | 2023–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:wpaper:y:2023:i:667&r=ene |
| By: | Paul Maximilian R\"ohrig; Nils K\"orber; Julius Zocher; Andreas Ulbig |
| Abstract: | An essential facet of achieving climate neutrality by 2045 is the decarbonization of municipal energy systems. To accomplish this, it is necessary to establish implementation concepts that detail the timing, location, and specific measures required to achieve decarbonization. This restructuring process involves identifying the measures that offer the most compelling techno-economic and ecological advantages. In particular, measures that contribute to the interconnection of energy vectors and domains, e.g. heating, cooling, and electricity supply, in the sense of decentralized multi-energy systems are a promising future development option. Due to the high complexity resulting from a multitude of decision options as well as a temporal coupling across the transformation path, the use of optimization methods is required, which enable a bottom-up identification of suitable transformation solutions in a high spatial resolution. For the design of reasonable concepts, we develop a multistage optimization problem for the derivation of transformation pathways in the context of a multi-location structure, expansion, and operation problem. The results show that the heat supply in the future will mainly be provided by heat pumps with a share of 60%. It can also be shown that an early dismantling of the gas network will lead to the need for transitional technologies such as pellet heating. Overall, the conversion of the municipal energy system can significantly reduce emissions (97%). |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.11576&r=ene |
| By: | Kaffo Fotio, Herve; Nchofoung, Tii; Asongu, Simplice |
| Abstract: | Despite growing attention on the role of renewable energy in promoting economic growth and environmental sustainability, its adoption rate remains uncomfortably low, especially in developing countries. This study attempts to explore the ways to extend the installed capacity of renewable energy in 16 sub-Saharan African (SSA) countries over the period 1980-2017. The results from panel cointegration econometric techniques suggest that policies to enhance financial integration should increase the installed capacity of renewable energy in SSA, though the beneficial effect is only statistically significant in the long run. This effect holds, although disproportionately when the financial integration index is disaggregated into its de facto and de jure aspects. Moreover, the quantile regression analysis reveals that the effect of financial integration on renewable energy capacity is positive but heterogeneous across the conditional distribution of renewable energy capacity. However, the positive effect of financial integration is not enough to ensure the diversification of the energy mix, measured as the share of renewable installed capacity in the total installed capacity. The results show that economic growth is positively linked to renewable energy generation capacity while financial development is negatively associated with renewable energy production. Overall, these findings suggest that policies to increase the openness to foreign capitals are welcomed as far as renewable energy generation is concerned. |
| Keywords: | Financial integration, Renewable energy, Sub-Saharan Africa, Cointegration |
| JEL: | E0 O1 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119063&r=ene |
| By: | Muhammad Adnan Hayat; Khalid Alhadhrami; Amro Elshurafa (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Countries are exploring various options to achieve net-zero emissions, including bioenergy with carbon capture and storage (BECCS), which is the process of capturing and storing carbon dioxide (CO2) from processes that utilize bioenergy to produce heat, electricity or biofuels. However, this technology faces sustainability concerns, an unclear public perception and has complex value chains for its emissions. Adding to this complexity, the literature presents two opposing views regarding the potential of BECCS to achieve negative emissions. This paper analyzes in detail a wide range of BECCS pathways in terms of their ability to achieve negative emissions and their associated costs. Out of the seven assessed pathways, our analysis shows that the corn-to-ethanol and biomethane-production-from-maize BECCS pathways in the U.S., along with biomethane production from wet manure in Europe and baling of straw pellets with trans-Atlantic shipment, can achieve negative emissions at a cost of 50, 108, 159 and 232 dollars per ton of CO2 ($/tCO2), respectively. Other technologies, such as poplar pellets, forest residue and agricultural residue with trans-Atlantic shipments, are not able to achieve negative emissions. |
| Keywords: | Battery Storage, Benefits of electricity trade, Business models, Climate change |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp28&r=ene |
| By: | Sauvant, Karl P.; Zimny, Zbigniew |
| Abstract: | Countries offer hundreds of billions of dollars for semiconductor, electric vehicles and renewable energy projects, super-charging a global FDI incentives race. This Perspective suggests that countries providing incentives should do that in a manner that results in wider benefits for the host economy, outlining how this can be done. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:colfdi:279951&r=ene |
| By: | Deger Saygin; Moongyung Lee |
| Abstract: | Green hydrogen, produced from water and renewable power through the electrolysis process, can play a crucial role in the low-carbon transition to achieve the net-zero emission targets. Currently, the production cost of green hydrogen is not competitive when compared to hydrogen produced from natural gas. High capital costs are a major factor constraining its cost-competitiveness. This working paper utilises financial market data to address the knowledge gap concerning the range of Weighted Average Cost of Capital (WACC) for green hydrogen projects. It also conducts a survey among investors and financiers to identify key risk factors contributing to the high WACC. The key risks that have been identified include offtaker risks, lack of credible offtakers, price uncertainty of green hydrogen, and the absence of hydrogen trading markets. These risks are closely connected to the available risk mitigation strategies and tools. The paper summarises key risk mitigation strategies identified through case studies of lighthouse green hydrogen projects that have either reached or are nearly point of reaching financial investment decisions. |
| Keywords: | cost competitiveness of green hydrogen, cost of capital, green hydrogen, industry decarbonisation, levelised cost of hydrogen |
| JEL: | L20 O14 O25 Q42 Q48 |
| Date: | 2023–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:227-en&r=ene |
| By: | Trinks, Arjan; Hille, Erik |
| JEL: | D22 H23 Q41 Q48 Q52 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277705&r=ene |
| By: | Swaroop Rao (Grenoble Ecole de Management / IREGE-Université Savoie Mont Blanc); David Grover (Grenoble Ecole de Management); Dorothée Charlier (IREGE-Université Savoie Mont Blanc) |
| Abstract: | Adaptation of energy systems worldwide to move away from fossil fuels is widely accepted to be a key step in responding to the challenge of climate change. For developing countries and their development banks, this challenge is compounded by the need to ensure economic development, particularly to lift parts of the population out of poverty. In this article, we analyse the economic impacts of electricity generation projects of the Brazilian national development bank. We use a two-way fixed-effects (TWFE) estimator on a 15-year municipality-level panel with time-varying (or “staggered”) treatment that accounts for recent findings in the panel data analysis literature. Our study finds that clean electricity generation has weaker economic effects compared to fossil electricity generation and compared to other projects of the development bank. This differentiated impact is particularly notable when it comes to the impact of investment on employment creation and wage levels. This is the first study that uses microdata to analyse the different economic impacts of clean electricity generation and fossil electricity generation at the local level. We posit that differences in labour intensities of clean electricity generation jobs and the jobs created by fossil electricity generation as well as other types of development bank investment account for these different impacts of project investments. We recommend that the cost of externalities of these projects be internalised in order for development banks and policymakers to get a fuller picture of the benefits brought about by them. Smaller economic impacts of certain development bank investments might also have negative implications for poverty reduction efforts in the country. |
| Keywords: | energy, Brazil, employment creation, microdata, staggered panel-data analysis |
| JEL: | C18 O22 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2022.01&r=ene |
| By: | Joseph Cordonnier; Deger Saygin |
| Abstract: | Industry decarbonisation is a cornerstone to reach net-zero emissions by this mid-century. The diversity of industrial activities, processes and products, the complexity of global industrial value chains, and the international competition make industry decarbonisation a challenging objective. Annual investments in low-carbon technologies for industry decarbonisation need to increase by a factor of three to five by 2030 compared to current levels to align industrial emissions with net-zero pathways. This paper analyses available financing solutions to scale up investments at pace, especially in emerging and developing economies where industrial production is growing rapidly whilst available finance is limited. It highlights de-risking and financial instruments and models that can help accelerate investments and draws lessons from twelve financing industry decarbonisation case studies which demonstrate how private capital can be mobilised. |
| Keywords: | climate change, climate mitigation, de-risking instruments, economic instruments, financial instruments, greenhouse gas emissions, industry decarbonisation, industry value chains, low-carbon technologies |
| JEL: | G23 L60 O14 Q54 Q56 Q58 |
| Date: | 2023–11–29 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:226-en&r=ene |
| By: | ISSIFOU, Hamza; NADJIMADNAN L., Stéphane |
| Abstract: | Several studies have suggested that an increase in per capita income has an impact on environmental quality; however, other research rejects this conclusion. This paper aims to empirically test the Environmental Kuznets Curve (EKC) hypothesis by analyzing the interaction between per capita income growth and environmental degradation, measured through CO2 emissions as the dependent variable. Furthermore, this study compiles panel data from 2000 to 2014 for all countries in the West African Economic and Monetary Union (WAEMU). The study's results revealed that the EKC hypothesis is not supported in the WAEMU countries. Consequently, it is recommended that WAEMU countries strengthen their environmental policies, with a focus on reducing carbon dioxide (CO2) emissions. Additionally, implementing environmental education programs to raise awareness among citizens is advised. |
| Keywords: | Environmental Kuznets Curve, per capita income, carbon dioxide (CO2) emissions. |
| JEL: | O55 Q52 Q56 Q58 |
| Date: | 2023–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119224&r=ene |
| By: | Tie Wei; Youqi Chen; Zhicheng Duan |
| Abstract: | Energy security is the guarantee for achieving the goal of carbon peaking and carbon neutrality, and exploring energy resilience is one of the important ways to promote energy security transition and adapt to changes in international and domestic energy markets. This paper applies the combined dynamic evaluation method to measure China's energy resilience level from 2004-2021, analyses the spatio-temporal dynamic evolution of China's energy resilience through the center of gravity-standard deviation ellipse and kernel density estimation, and employs geo-detectors to detect the main influencing factors and interactions of China's energy resilience. The study finds that:(1)China's energy resilience level generally shows a zigzagging forward development trend, and the spatial imbalance characteristic of China's energy resilience is more obvious.(2)The spatial dynamics of China's energy resilience level evolves in a northeast-southwest direction, and the whole moves towards the southwest, with an overall counterclockwise trend of constant offset.(3)When the energy resilience level of neighboring provinces is too low or too high, it has little effect on the improvement of the energy resilience level of the province; when the energy resilience level of neighboring provinces is 1-1.4, it has a positive spatial correlation with the energy resilience level of the province, and the synergistic development of the provinces can improve the energy resilience level together.(4)GDP, the number of employees, the number of employees enrolled in basic pension and medical insurance, and the number of patent applications in high-tech industries have a more significant impact on China's energy resilience, while China's energy resilience is affected by the interaction of multiple factors. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.10987&r=ene |
| By: | Yolande Francois (ISEOR - Institut de Socio-économie des Entreprises et des ORganisations - Institut de socio-économie des entreprises et des organisations) |
| Abstract: | This article explores the role of group ethics in influencing organizational and individual behaviors to promote a sustainable energy transition and adaptation to climate change. Group ethics, which emphasizes shared values and goals, can contribute to ethical decision-making, commitment to sustainability, adoption of eco-responsible practices, improvement of collaboration, and promotion of sustainable innovation. By examining the various facets of group ethics, the article highlights its potential to motivate individuals and organizations to engage in responsible actions to combat climate change and support energy transition. Group ethics can also encourage businesses to engage in cross- sectoral and interdisciplinary collaborations, as well as invest in research and development of green technologies. The article emphasizes the importance of group ethics as a catalyst for organizational and individual behaviors for a sustainable response to climate change and a successful energy transition. |
| Abstract: | Cet article explore le rôle de l'éthique groupale dans l'influence des comportements organisationnels et individuels pour favoriser une transition énergétique durable et une adaptation aux changements climatiques. L'éthique groupale, qui met l'accent sur les valeurs et |
| Keywords: | Group ethics, Energy transition, Climate change, Organizational behaviors, Sustainable innovation, Éthique groupale, Transition énergétique, Changements climatiques, Comportements organisationnels, Innovation durable |
| Date: | 2023–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04268006&r=ene |
| By: | Drolsbach, Chiara Patricia; Gail, Maximilian Maurice; Klotz, Phil-Adrian |
| JEL: | H23 L13 L91 Q48 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277655&r=ene |
| By: | Francesco de Cunzo; Davide Consoli; Francois Perruchas; Angelica Sbardella |
| Abstract: | The goal of this paper is to elaborate an empirical analysis of the relationship between Critical Raw Materials (CRMs) and environmental technologies. Using text mining techniques to parse and analyse patent descriptions, we provide a thorough empirical exploration of (i) the dependence of green technologies on CRMs; (ii) the countries that lead the demand of CRMs; and (iii) the countries that are more exposed to global demand for CRMs. Framed in the context of recent policy debates on the viability of the green transition, our study points to criticalities associated to both the evolution of green technology and to the spatial network of demand and supply of CRMs. |
| Keywords: | Critical Raw Materials, Green Technologies, Text Mining |
| JEL: | O33 Q55 O13 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2322&r=ene |
| By: | Roman Le Goff Latimier (ENS Rennes - École normale supérieure - Rennes, SATIE - Systèmes et Applications des Technologies de l'Information et de l'Energie - ENS Rennes - École normale supérieure - Rennes - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay - Université Gustave Eiffel - CY - CY Cergy Paris Université); Hamid Ben Ahmed (ENS Rennes - École normale supérieure - Rennes, SATIE - Systèmes et Applications des Technologies de l'Information et de l'Energie - ENS Rennes - École normale supérieure - Rennes - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay - Université Gustave Eiffel - CY - CY Cergy Paris Université) |
| Abstract: | Driven by the energy transition and the development of distributed energy resources, peer-to-peer markets are the focus of much research. Because of their decentralised structure, they allow scaling up by multiplying the number of agents in a market. Moreover, they permit heterogeneous preferences between peers to introduce behaviours such as local exchanges or an environmentally friendly preference. Despite these attractive features, which make them good candidates for the evolution of power systems, they present several challenges that are still being investigated at present in order to become operationally viable. Supporting many agents is done by exchanging even more messages. Furthermore, integration with power systems requires adapting the interaction with the system operator. The aim is to ensure that the physical limits of the infrastructure are respected and to measure the completed trades. The decentralisation of the energy market also has an impact on the market for capacity reserves to deal with contingencies. Finally, the final challenge is how the enduser will deal with such a change. Despite these various difficulties, several pilot projects highlight the possibilities of these markets for the evolution of power systems. |
| Keywords: | peer to peer market, electricity market, distributed optimisation, grid control |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04268639&r=ene |
| By: | Almendra Awerkin; Paolo Falbo; Tiziano Vargiolu |
| Abstract: | The focus on Renewable Energy Communities (REC) is fastly growing after the European Union (EU) has introduced a dedicated regulation in 2018. The idea of creating local groups of citizens, small- and medium-sized companies, and public institutions, which self-produce and self-consume energy from renewable sources is at the same time a way to save money for the participants, increase efficiency of the energy system, and reduce CO$_2$ emissions. Member states inside the EU are fixing more detailed regulations, which describe, how public incentives are measured. A natural objective for the incentive policies is of course to promote the self-consumption of a REC. A sophisticated incentive policy is that based on the so called 'virtual framework'. Under this framework all the energy produced by a REC is sold to the market, and all the energy consumed must be paid to retailers: self-consumption occurs only 'virtually', thanks a money compensation (paid by a central authority) for every MWh produced and consumed by the REC in the same hour. In this context, two problems have to be solved: the optimal investment in new technologies and a fair division of the incentive among the community members. We address these problems by considering a particular type of REC, composed by a representative household and a biogas producer, where the potential demand of the community is given by the household's demand, while both members produce renewable energy. We set the problem as a leader-follower problem: the leader decide how to share the incentive for the self-consumed energy, while the followers decide their own optimal installation strategy. We solve the leader's problem by searching for a Nash bargaining solution for the incentive's fair division, while the follower problem is solved by finding the Nash equilibria of a static competitive game between the members. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.12055&r=ene |
| By: | Gerhardt, Michaela V.; Kanberger, Elke D.; Ziegler, Andreas |
| JEL: | R4 Q5 D12 C35 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277675&r=ene |
| By: | Marco Tedeschi (Department of Economics and Social Sciences, Universita' Politecnica delle Marche) |
| Abstract: | This study examines the relationship between fossil fuels energy prices and renewable energy ETFs through a two-step approach: cointegration analysis and volatility spillover examination at both aggregate and frequency levels. Using daily closing prices from May 5, 2014, to October 31, 2023, we find evidence of cointegration among prices and a substitutedness (complementarity) relationship between fossil fuels and eolic (solar) energy. Exploring the system's common trend and correction mechanism underscores the influential role of growing Environmental, Social, and Governance (ESG) sentiment in the market. External events, such as the Russia-Ukraine war and the Covid-19 pandemic, have discernible impacts on financial prices. The study provides valuable implications for investors and hedgers, offering guidance for portfolio optimization and emphasizing the consideration of sustainable financial products. |
| Keywords: | Cointegration; Spillovers: Renewable Energies; Fossil Fuels; ESG. |
| JEL: | C22 C58 Q40 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:anc:wpaper:483&r=ene |
| By: | Ider, Gökhan; Kriwoluzky, Alexander; Kurcz, Frederik; Schumann, Ben |
| JEL: | C22 E31 E52 Q43 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277710&r=ene |
| By: | Gornemann, Nils; Hildebrand, Sebastian; Kuester, Keith |
| JEL: | E31 E32 E52 F41 Q43 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277614&r=ene |
| By: | Shobande, Olatunji; Asongu, Simplice A |
| Abstract: | The struggle to combat climate change remains complex and challenging. Currently, two climate change approaches, namely, mitigation and adaptation, have been widely supported. These are empirical, requiring further explanation of the main drivers of carbon emissions. This research seeks to tackle this problem by providing a strategy to reduce climate change impacts. This study contributes to the existing empirical literature in several ways. It investigates whether education and information and communication technology (ICT) matter in promoting environmental sustainability in the Eastern and Southern Africa. The empirical evidence is based on third-generation panel unit root and cointegration tests that account for the potential issue of structural breaks in the series. We further dissect the long and short run dynamics using the panel Granger causality approach. Our findings show the possibility of using education and clean technology investment in a complementary strategy for mitigating carbon emissions and promoting environmental sustainability in the sampled countries. |
| Keywords: | Environmental Sustainability; ICT; Education; Eastern Africa; Southern Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2022–01–02 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119054&r=ene |
| By: | Haiyan Deng; Ge Bai; Kristiaan Kerstens (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Zhiyang Shen (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Total factor productivity is used to explore the input–output efficiency of the economy and the driving factors behind economic growth. Although scholars have researched the total factor productivity approach, comparisons among different models in empirical research are rare and few scholars have focused on worldwide total factor productivity gains. Using convex and nonconvex technologies, this contribution investigates green productivity gains of 129 worldwide countries during 2000–2019 based on three popular productivity measures, namely, Luenberger–Hicks–Moorsteen indicator, Luenberger productivity indicator, and Malmquist–Luenberger index, respectively. Inspired by a metafrontier approach, we compare their productivity evolutions with the energy structure among 121 economies. A negative relationship is expected between the change in the proportion of fossil fuel energy consumption and green productivity. Our results show that the Luenberger–Hicks–Moorsteen productivity indicator under nonconvex technologies is a more convincing productivity measure when considering undesirable outputs in production technology. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04273632&r=ene |
| By: | Christian Bayer; Alexander Kriwoluzky; Gernot J. Müller; Fabian Seyrich |
| Abstract: | The distributional and disruptive effects of energy supply shocks are potentially large. We study the effectiveness of alternative fiscal responses in a two-country HANK model that we calibrate to the euro area. Energy subsidies can stabilize the domestic economy, but are fiscally costly and generate adverse spillovers to the rest of the monetary union: What the subsidizing country gains, the other countries lose. Transfers based on historical energy consumption in the form of a Hicks/Slutsky compensation are less effective domestically as subsidies but do not harm economic activity abroad. In addition, transfers increase welfare at Home while subsidies reduce welfare. |
| Keywords: | Energy crisis, Subsidies, Transfers, HANK2, monetary union, spillovers, heterogeneity, inequality, households |
| JEL: | D31 E64 F45 Q41 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_474&r=ene |
| By: | Andreas Freytag (Friedrich Schiller University Jena, University of Stellenbosch, CESifo-Research Network, STIAS); Matthias Menter (Friedrich Schiller University Jena); Jan Hauke Montag (Friedrich Schiller University Jena); Sebastian Schuhmann (Friedrich Schiller University Jena) |
| Abstract: | Economic development and climate change constitute two of today’s major international policy challenges. While development cooperation has long been on the political agenda, addressing global climate change has gained policymakers’ attention more recently. Transfers for financing single projects have been a common practice in the development field. Empirical evidence suggests that the effectiveness has remained disappointing. Consequently, many developing countries face governance problems affecting their ability to master challenges associated with climate change. Current trends in international climate cooperation follow a similar approach. Political efforts may prove insufficient to meet climate objectives if similar deficiencies occur in climate cooperation. Applying a political economy approach, this paper provides a critical assessment of current practices in international development and climate policies highlighting the observed deficiencies in development and potential implications for climate cooperation. Acknowledging the interlinkages and linking development and climate change policies, could increase the effectiveness and efficiency of political efforts. The paper, furthermore, discusses market-based instruments, especially Emission Trading Schemes as policy alternatives as well as the potential merits for circumventing and solving institutional problems experienced in climate cooperation. We discuss the political economic challenges affecting the implementation and operation of (a global) scheme. |
| Keywords: | development, climate change, policy coordination, emission trading scheme, issue linkage |
| JEL: | O13 O44 P41 P48 |
| Date: | 2023–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:jrp:jrpwrp:2023-019&r=ene |
| By: | Pepe, Jacopo Maria; Ansari, Dawud; Gehrung, Rosa Melissa |
| Abstract: | The transition to a hydrogen-based economy is gaining momentum in both Germany and the European Union (EU). Used as an energy carrier, hydrogen holds the promise of freeing hard-to-decarbonise sectors like heavy industry, aviation, and maritime trade from their emissions. At the same time, policymakers hope that hydrogen will promote Europe's energy independence, push sustainable development, and strengthen value-based trade. This study presents three plausible yet disruptive scenarios for the geopolitics of hydrogen up to the year 2040 (developed with a team of experts in a multi-stage foresight process). "Hydrogen Realignment" considers the possibility of an eastward shift of industry, power, and technological leadership; "Hydrogen (In)Dependence" depicts a future, in which Europe pursues hydrogen self-sufficiency but becomes dependent on raw material supply; and "Hydrogen Imperialism" delves into the dystopian scenario of a hydrogen transition dominated by hegemons and despots. The transition to hydrogen is likely to shift and complicate Europe's external dependence rather than eliminate it; the role of supply chains will become more important. Moreover, the potential of hydrogen trade for global sustainable development is limited and requires targeted efforts. Resource distribution, production potential, current geopolitical power dynamics, and their interplay will influence hydrogen policy and decision-making along the entire value chain, with actors often giving priority to socioeconomic, geopolitical, and technopolitical considerations. Germany and the EU must pursue a proactive hydrogen strategy, acknowledge the preferences of external actors, and form pragmatic partnerships to keep sight of climate goals, retain industry, and avoid losing global influence. In addition to promoting targeted technologies, decision-makers must manage dependencies across sectors and do so in an anticipatory way. Pursuing diversification is indispensable, and instituting targeted diplomacy and development assistance would be helpful. The new hydrogen sector also needs governing institutions - for example a "Hydrogen Alliance" - to mitigate geopolitical risks and allocate investments correctly. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swprps:279892&r=ene |
| By: | Michele Azzone; Maria Chiara Pocelli; Davide Stocco |
| Abstract: | Sustainable investing refers to the integration of environmental and social aspects in investors' decisions. We propose a novel methodology based on the Triangulated Maximally Filtered Graph and node2vec algorithms to construct an hedging portfolio for climate risk, represented by various risk factors, among which the CO2 and the ESG ones. The CO2 factor is strongly correlated consistently over time with the Utility sector, which is the most carbon intensive in the S&P 500 index. Conversely, identifying a group of sectors linked to the ESG factor proves challenging. As a consequence, while it is possible to obtain an efficient hedging portfolio strategy with our methodology for the carbon factor, the same cannot be achieved for the ESG one. The ESG scores appears to be an indicator too broadly defined for market applications. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.12450&r=ene |
| By: | Helen Mashiyat Preoty; Mashfiq Ahasan Hridoy; ASM Shamim Alam Shibly; Tamim Ahmed |
| Abstract: | The power and energy sector of Bangladesh has been confronting several challenges that adversely affected various economic activities in households, agriculture, industries and businesses. These power and energy sector challenges require special attention from the National Budget FY23–24. However, the national budget for FY23–24 was a ‘business as usual’ budget for this sector instead of addressing significant challenges. So, the expectations are lower that the budget passed at the parliament would improve the sectoral health in particular. The study analysis shows that the power and energy sector has no good news in the early future, and load shedding is likely to continue in the coming months, hindering households, businesses, industry, and commercial activities. With huge excess reserves (about 50 per cent in FY25), the power sector will continue struggling to meet the capacity payment, subsidy requirements and fuel import payments. |
| Keywords: | Power Sector, National Budget, FY2024, Renewable Energy, LNG-based power generation, Bangladesh |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:150&r=ene |
| By: | Alexander Mihailov (Department of Economics, University of Reading) |
| Abstract: | This paper is motivated by the urgency of climate change mitigation and by the crucial importance of communicating the need for it, as well as any progress made along the goal of net zero in the near future. Our approach relies on using a comparative visualization in colormap stripes for all countries across the globe that can easily be conveyed, compared and understood even by nonspecialists. It proposes a novel and simple measure of what is referred to as 'greening prosperity stripes' and defined as the ratio of real gross domestic product per capita to carbon dioxide emissions per capita, based on annual data available online from the World Bank since 1990. These new greening prosperity stripes, in effect, complement the University of Reading climate, or warming, stripes due to climatologist Ed Hawkins that are now world-famous. We hope that our indicators of greening prosperity per country and group of countries, illustrated in colors as they evolve with time and in cross-section, will raise awareness of environmental pollution and remind us that we need to act immediately to mitigate and reverse climate change. In the present initial work, a basic concept, its measurement and visualization is proposed, with many intuitive panels of graphs providing various comparative perspectives on the topic, yet further extensions are identified as possible next steps. |
| Keywords: | real GDP per capita, CO2 emissions per capita, greening prosperity stripes, data visualization, public awareness, climate change mitigation |
| JEL: | C82 F64 O44 Q51 |
| Date: | 2023–11–27 |
| URL: | http://d.repec.org/n?u=RePEc:rdg:emxxdp:em-dp2023-17&r=ene |
| By: | Engler, Daniel; Ziegler, Andreas; Gutsche, Gunnar; Simixhiu, Amantia |
| JEL: | Q54 D64 D83 D91 C93 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277662&r=ene |
| By: | HISGUIMA DASSIDI Crépin |
| Abstract: | This study highlights the effect of Fiscal Rules(FR) on Green Investments(GI) in developing countries. We analyze the causal effect of adopting rules on green financing using the entropy balancing method in 78 countries. Two hypotheses are tested in this study. The first one states that adopting Fiscal Rules increases green financing, and the second one is related to the ability of different types of rules to attract more investments to fight climate change. First, the results are robust and show that adopting Fiscal Rules increases climate finance. Unlike expenditure rules, deficit, debt, and revenue rules positively affect green financing. The effect of Fiscal Rules on green finance is amplified in countries with strong economic performance, high levels of democracy, goodquality institutions, and a well-functioning state apparatus. On the other hand, the effect of the rules is mitigated in the presence of high natural resource rents. |
| Keywords: | Fiscal rules, green investment, fiscal policy |
| JEL: | E60 E62 Q5 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp02982023&r=ene |
| By: | Andres M. Alonso; Zehang Li |
| Abstract: | In this note, we illustrate the computation of the approximation of the supply curves using a one-step basis. We derive the expression for the L2 approximation and propose a procedure for the selection of nodes of the approximation. We illustrate the use of this approach with three large sets of bid curves from European electricity markets. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.10738&r=ene |
| By: | Koch, Svea; Aleksandrova, Mariya |
| Abstract: | With the first Global Stocktake to be presented at the 28th Conference of the Parties (COP28) to the United Nations Framework Convention on Climate Change (UNFCCC) in Dubai, the question of inadequate levels of climate finance for developing countries will again take centre stage. Ongoing efforts to reform climate finance include the negotiation of a New Collective Quantified Goal (NCQG) by the end of 2024; the structural reform of Multilateral Development Banks (MDBs) to provide more climate finance and to lower the cost of capital; and the setting-up and integration of the new funding stream for loss and damage. Yet, there are other longstanding issues in international climate finance that likewise need to be addressed as part of these ongoing efforts, which are mainly related to the disentanglement of the development and climate finance regimes. Official Development Assistance (ODA), per definition, aims to promote the economic development and welfare of developing countries, and at the same time plays an increasing role in the global climate finance landscape. However, sourcing climate finance from ODA is already leading to a 'crowding out' of limited ODA resources for its original purposes. Moreover, the current system of reporting on and accounting for climate finance provided through ODA has significant pitfalls and weaknesses. This paper discusses some of the key challenges caused by the blurring of the development assistance and climate finance regimes and argues that the NCQG process and the integration of loss and damage into the climate finance system must go hand in hand with a separation of climate and development finance accounting mechanisms whilst ensuring integrated policy responses. We address these issues in two parts: first we focus on the current system of reporting and accounting for international climate finance (as ODA); and second on the role of ODA to finance mitigation, adaptation, and loss and damage. We argue that there is a political necessity for distinguishing between ODA and climate finance (for transparency and credibility), which contrasts with the operational reality where co-benefits of projects and development finance must be achieved by integrating climate and non-climate objectives. In this regard, the paper analyses the implications of on-going negotiations under the UNFCCC around the NCQG and loss and damage for a necessary ODA reform. In particular, we make the following recommendations: (1) Align the accounting and reporting system of the OECD (Organisation for Economic Co-operation and Development) with the NCQG: one should separate climate and development finance; reduce over-reporting; and establish triangulation of climate finance data reported by donors. (2) Introduce qualitative frameworks for monitoring and assessment of the impact of climate-related interventions; and define 'fit-for-purpose' instru-ments and channels for the provision of climate finance. Looking ahead, we expect discussions on a potential enlargement of the contributor base of climate finance to give new impetus to climate finance reform. |
| Keywords: | development finance, climate change |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:idospb:279953&r=ene |
| By: | Guerrero-Escobar Santiago; Hernández-del-Valle Gerardo; Hernández Vega Marco; De-la-Mora Paula |
| Abstract: | Many companies are setting ambitious targets to reduce their greenhouse gas emissions (GHG) per the Paris Agreement. However, there is limited evidence on the market effects of setting those targets. Using a GARCH model with a trend developed by the authors and a panel fixed effects model, this paper analyzes the short-run effects of committing and setting GHG targets on public companies' stock price returns and volatility. We find no evidence that committing or setting a target yields higher returns but contributes to a reduction in price volatility, albeit the impact is short-lived. In view of these results, we conclude that there are no visible stock market gains in the short term for companies that commit and set GHG targets and that other factors may explain their motivations to engage in GHG mitigation actions. |
| Keywords: | Stock returns;Volatility;GHG emissions;ESG;GARCH |
| JEL: | C1 E1 I0 O4 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdm:wpaper:2023-15&r=ene |
| By: | Flörchinger, Daniela; Frondel, Manuel; Jarke-Neuert, Johannes; Perino, Grischa |
| JEL: | C93 D83 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277680&r=ene |
| By: | Ernst, Anne; Stähler, Nikolai; Hinterlang, Natascha |
| JEL: | E32 E50 E62 H32 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277631&r=ene |
| By: | Thomas Pernet (Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne); Mathilde Maurel (CNRS, Centre d'Economie de la Sorbonne); Zhao Ruili (Shangaï University of International Business and Economics, China) |
| Abstract: | This study explores the role of internal finance on firms' environmental behavior, focusing specifically on sulfur dioxide (SO2) emissions in China's rapidly growing industrial sector. Using a rich and unique dataset provided by the Ministry of Environmental Protection (MEP), our baseline results find a statistically significant positive relationship between asset tangibility and SO2 emissions intensity, revealing that credit-constrained firms with higher tangible assets contribute to elevated pollution levels. Additionally, we observe that firms with stronger internal finances experience a significant reduction in SO2 emissions. Our empirical analysis uncovers two key mechanisms through which internal finance influences firm behavior. First, firms with stronger internal financial health, as measured by metrics like cash flow, current ratio, and coverage ratio, are more inclined to invest in Research & Development and Total Factor Productivity, especially in credit-constrained sectors. Second, these financially robust firms are more proactive in adopting SO2 abatement technologies, an effect that becomes more pronounced in the context of credit-constrained firms. Our findings offer a nuanced understanding of how internal financial resources can serve as a dual lever for both innovation and sustainability, particularly in settings where external financing is limited |
| Keywords: | China; Pollution emissions; Financial constraints; Internal financing; TFP |
| JEL: | G2 G32 L25 L6 Q53 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:23015&r=ene |
| By: | Timo Kuosmanen; Sheng Dai |
| Abstract: | Modeling of joint production has proved a vexing problem. This paper develops a radial convex nonparametric least squares (CNLS) approach to estimate the input distance function with multiple outputs. We document the correct input distance function transformation and prove that the necessary orthogonality conditions can be satisfied in radial CNLS. A Monte Carlo study is performed to compare the finite sample performance of radial CNLS and other deterministic and stochastic frontier approaches in terms of the input distance function estimation. We apply our novel approach to the Finnish electricity distribution network regulation and empirically confirm that the input isoquants become more curved. In addition, we introduce the weight restriction to radial CNLS to mitigate the potential overfitting and increase the out-of-sample performance in energy regulation. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.11637&r=ene |
| By: | Joseph Ikechukwu Uduji (University of Nigeria, Nsukka, Nigeria); Elda Nduka Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Justitia Odinaka Nnabuko (University of Nigeria, Nsukka, Nigeria); Geraldine Egondu Ugwuonah (University of Nigeria, Nsukka, Nigeria); Josaphat Uchechukwu Onwumere (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | This paper critically examines the multinational oil companies' (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on addressing inequalities and empowering women for sustainable ecosystem management in the Niger Delta region of Nigeria. The paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 768 women respondents were sampled across the rural areas of the Niger Delta region. Results from the use of logistic regression model indicate that despite women’s unique and important responsibilities in the use and management of natural resources, women are typically less involved in the formal governance processes, resulting in their interests, goals, knowledge and capabilities being both under-represented and under-utilized. It also shows that the MOCs’ CSR using GMoU model has recorded significant success in addressing gender inequalities and enhancing the capacity of the rural women in natural resources and ecosystem management. The finding suggests that if the MOCs’ CSR targeted at addressing gender issue is increased by one unit, the odd ratio is almost 13 times as high. This implies that addressing gender –related barriers and challenges and championing equitable natural resource governance leads to better livelihoods outcomes. It concludes that business has an obligation to help in solving problems of public concern. |
| Keywords: | Gender, natural resource management, corporate social responsibility, multinational oil companies, sub-Saharan Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:23/069&r=ene |
| By: | Occhiali, Giovanni |
| Abstract: | Increasing the slow pace of adoption of environmental taxes across low-income countries has become a significant priority among international financial institutions, multilateral development banks, and international donors. Yet little is known about the practical institutional, administrative, and political obstacles that have led to their slow implementation and how they can be made more appealing, especially across sub-Saharan Africa. Based on an extensive literature review and 16 in-depth interviews with ministries of finance, revenue authorities, and other government stakeholders across six African countries, this paper provides some evidence that will support action and research on this theme. While there are differences across the countries covered, a lack of data and analytical capacity to develop effective environmental taxes is a common theme, as well as the historical prioritisation of their revenue mobilisation capacity over their environmental impact. A great variety of government actors with a mandate over natural resources, often with competing policy priorities, coupled with a lack of coordination fora, has also impeded the harmonisation of the environmental charges they levy. These measures are also often perceived to be regressive and to pose an obstacle to industrial development, lowering their appeal, given that poverty reduction and employment creation are an overarching priority. Nonetheless, support for introducing specific environmental tax measures exists across the population and policymakers, especially if their revenue can be earmarked for environmental purposes. |
| Keywords: | Climate Change, Environment, Governance, |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18192&r=ene |
| By: | Tauro, Raúl J.; Caballero, José Luis; Salinas, Miguel Ángel; Ghilardi, Adrián; Arroyo, José Manuel |
| Abstract: | En este documento se presentan las estimaciones del potencial técnico de la energía que se puede obtener en El Salvador a través de ciertos tipos de biomasa. Los potenciales se estimaron utilizando la plataforma geoespacial para la evaluación del potencial energético de los recursos biomásicos de los países del Sistema de la Integración Centroamericana (SICA), una iniciativa de la Comisión Económica para América Latina y el Caribe (CEPAL) llevada a cabo en colaboración con el Centro de Investigaciones en Geografía Ambiental (CIGA) de la Universidad Nacional Autónoma de México (UNAM). Los potenciales obtenidos mediante información geoespacial para algunos tipos de bioenergía constituyen una referencia para la toma de decisiones informada sobre el uso de ciertos recursos biomásicos como fuente de energía en El Salvador, con el fin de aumentar la participación de los recursos renovables en la matriz energética del país, en línea con la meta 2 del ODS 7 de la Agenda 2030 para el Desarrollo Sostenible de las Naciones Unidas. |
| Date: | 2023–10–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:68598&r=ene |
| By: | Michael Lainé (Laboratoire d’Économie Dionysien-LED, EA 3391, Université Paris 8 Vincennes - Saint-Denis, Saint-Denis, France - LED) |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04265121&r=ene |
| By: | Giuseppe Attanasi (Sapienza University of Rome, Italy; BETA, University of Strasbourg, France; Université Côte d'Azur, CNRS, GREDEG, France); Barbara Buljat Raymond (Université Côte d'Azur, France; GREDEG CNRS); Agnès Festré (Université Côte d'Azur, France; GREDEG CNRS); Andrea Guido (Université Bourgogne Franche-Comté; Burgundy School of Business) |
| Abstract: | We test whether augmented reality (AR) can serve as a fundraising tool by providing a more immersive way of communicating about environmental issues. In two incentivized studies, we exposed people to AR visualizations illustrating the consequences of plastic pollution, and measure the effect on participant' psychological distance, concern, intention to act and real proenvironmental behavior (donation to pro-environmental organizations). Results show evidence of heterogeneous effects depending on participants’ self-reported pro-environmental attitudes and personal characteristics: following the intervention, individuals with low environmental engagement were likely to reduce their psychological distance, while the opposite happened for individuals engaged in sustainable practices. However, despite AR visualizations reduced the psychological distance of a subset of individuals, our experimental intervention did not increase donation levels. Taken together, our results raise concerns about the use of AR technologies in fundraising and highlight the need for personalised interventions that take into account the heterogeneity of target groups. |
| Keywords: | Augmented Reality (AR), experiment, decision making, environmental fundraising, psychological distance, pro-environmental behavior, pro-environmental attitudes |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2023-15&r=ene |
| By: | Pike, Susan; Handy, Susan |
| Abstract: | This study explores the factors associated with observed changes in transportation mode shares over the period from 2012 to 2017 (corresponding with the period between the two most recent household travel surveys conducted in California). In contrast with the goals of the California Department of Transportation and the State Transportation agency, walking, biking, and using transit all decreased during this period, and driving and the use of personal vehicles increased. There are a number of factors typically associated with transportation mode choices, including socio-demographics, attitudes, life stages, land use and infrastructure availability. Further, large scale events may also have an effect on travel trends; for example, the Great Recessionmay have impacted individuals’ ability to own a personal vehicle and therefore increased the use of alternative means of transportation during the years leading up to our survey period. Similarly, the 2013 passage of legislation allowing for non-citizens to obtain a driver’s license in the state of California, may have impacted mode shares over the study period. This paper compares these and other factors impacting mode shares in 2012 and in 2017 to answer part of the question about why we see this decrease in the use of active modes over this period and what types of planning, programs, and policy actions may help to reverse this trend and get California back on track to increase walking, biking and the use of public transit. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Travel mode shares, Changes in walking and biking, California mode shares, NHTS, CHTS, Survey Methods |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9cg0f12x&r=ene |
| By: | Ricardo Calabrese; Marcelo Romero |
| Abstract: | A crescente urbanização mundial e a dependência de combustíveis fósseis são dois dos principais desafios enfrentados pelas cidades atualmente. A energia fotovoltaica é uma das alternativas sustentáveis e renováveis que podem ser usadas para superar esses desafios. Este artigo discute a integração da energia fotovoltaica no novo planejamento urbano por meio de bairros solares colaborando com a resiliência urbana e descarbonização das cidades. O estudo apresenta exemplos de bairros solares em diferentes partes do mundo que têm sido eficazes na produção de energia elétrica por meio de painéis fotovoltaicos integrados em edifícios residenciais e comerciais. Esses bairros solares também provocaram a redução das emissões de gases de efeito estufa contribuindo para a melhoria da qualidade do ar nas cidades. Além disso, o artigo explora as estratégias de planejamento urbano que podem ser utilizadas para facilitar a integração da energia fotovoltaica em bairros solares. Essas estratégias incluem incentivos fiscais, legislações específicas, políticas públicas e parcerias com empresas de energia renovável. Por fim, o artigo destaca a importância da resiliência urbana no contexto da integração da energia fotovoltaica no planejamento urbano. A resiliência urbana é uma abordagem que busca tornar as cidades mais adaptáveis e resistentes a eventos extremos, como mudanças climáticas e desastres naturais. A integração da energia fotovoltaica em bairros solares pode contribuir para aumentar a resiliência urbana, a independência de combustíveis fósseis e a segurança energética das cidades. Em conclusão, a integração da energia fotovoltaica no planejamento urbano por meio de bairros solares pode ser uma estratégia eficaz para promover a resiliência e descarbonização das cidades. No entanto, é necessário o compromisso das autoridades governamentais, empresas e comunidades locais para implementar essa mudança. |
| Keywords: | bairros solares; Decarbonization; descarbonização; energia fotovoltaica; photovoltaic energy; Planejamento Urbano; resiliência urbana; solar neighborhoods; Urban Planning; urban resilience |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:lre:wpaper:lares-2023-4dpw&r=ene |