|
on Energy Economics |
| By: | Pichler, Anton; del Rio-Chanona, R. Maria; Farmer, J. Doyne; Ives, Matthew; Bücker, Joris |
| Abstract: | Transitioning to a net-zero emissions power system will create and destroy jobs in different occupations, creating skill mismatches and labor mobility frictions. We analyze the employment dynamics of a fast transition scenario for the US electricity sector that reaches 95% decarbonization by 2035, using an input-output model coupled to an occupational mobility network. We find three distinct labor market phases during the transition: 'scale-up', 'scale-down', and a long-term steady state. During the scale-up phase, from 2023–2034, for every job lost in a given industry, twelve new jobs are created elsewhere. But only a few occupations experience a consistent increase in demand throughout the transition. We predict that skill mismatches will create labor frictions during the transition, especially in the scale-down phase. Without proper planning, rapidly growing industries will struggle to find skilled labor in the scale-up phase, and displaced workers will have difficulty finding jobs during the scale-down phase. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:amz:wpaper:2023-28&r=ene |
| By: | Klaus Eisenack |
| Abstract: | Cities increasingly address climate change, e.g. by pledging city-level emission reduction targets. This is puzzling for the provision of a global public good: what are city governments’ reasons for doing so, and do pledges actually translate into emission reductions? Empirical studies have found a set of common factors which relate to these questions, but also mixed evidence. What is still pending is a theoretical framework to explain those findings and gaps. This paper thus develops an abstract public choice model. The model features economies of scale and distinguishes urban reduction targets from actual emission reductions. It is able to support some stylized facts from the empirical literature and to resolve some mixed evidence as special cases. Two city types result. One type does not achieve its target, but reduces more emissions than a free-riding city. These relations reverse for the other type. The type determines whether cities with lower abatement costs more likely set targets. A third type does not exist. For both types, cities which set targets and have higher private costs of carbon are more ambitious. If marginal net benefits of mitigation rise with city size, then larger cities gain more from setting climate targets. Findings are contrasted with an alternative model where targets reduce abatement costs. Some effects remain qualitatively the same, while others clearly differ. The model can thus guide further empirical and theoretical work. |
| Keywords: | Local provision of public goods; public choice; voters; lobbyists; cobenefits; private costs of carbon |
| JEL: | Q54 Q58 D72 |
| Date: | 2023–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0029&r=ene |
| By: | Hein, Eckhard |
| Abstract: | This paper reviews the post-Keynesian theory of inflation against the background of the simultaneous rise in inflation and profit shares in the course of the Covid-19 recovery and the Russian war in Ukraine. It distinguishes between the Keynes, Kaldor, Robinson, and Marglin tradition, and the Kalecki, Rowthorn, and Dutt tradition. Two prototype models in the latter tradition-the Dutt, Blecker/Setterfield and Lavoie variant, and the Rowthorn and Hein/Stockhammer variant-are discussed. The paper applies the latter to elucidate recent inflation trends propelled by increasing imported energy prices and then rising mark-ups. The effects of inflation-targeting central bank interest policies versus a post-Keynesian alternative macroeconomic policy approach are evaluated. It is argued that from a post-Keynesian perspective inflation is always and everywhere a conflict phenomenon, with different potential triggers. Adequate policies should thus focus on moderating distribution conflict by incomes policies, complemented by central banks targeting low long-term real interest rates, functional finance fiscal policies and international coordination of inflation targets. |
| Keywords: | conflict inflation, post-Keynesian models, imported energy inflation shock |
| JEL: | E12 E25 E31 E61 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:280430&r=ene |
| By: | Enzmann, Johannes; Ringel, Marc |
| Abstract: | The European Union aims at net-zero emissions by 2050. A key sector to achieve this goal is road transport, where emissions show no signs of reducing but continue to grow. A review of policies undertaken by EU member states and the G20 to reduce transport emissions reveals that both present and planned policies focus on binding supply-side measures, but offer only weak demand-side incentives. To address this imbalance, we developed a downstream, demand-side policy prototype through an expert interview design process. We call the prototype “cap-and-surrender” because it caps road emissions, and then allocates tradable emission allowances to individual vehicles that drivers surrender at each fill-up. Allowance pricing, both by the state and in the secondary market, is designed to incentivize decarbonization of the sector. Though the system would require significant investment, its revenue potential to the state should exceed this investment by several multiples. We discuss the potential economic, environmental and social impacts of the policy, as assessed by European transport experts. We find that the approach can deliver significant transport emission reductions in an effective and economically efficient manner. Through the appropriate design of national allocation rules and a gradual phasing in of cap and surrender, potential negative social consequences can be mitigated, and public acceptance of the policy promoted. |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:141745&r=ene |
| By: | OECD |
| Abstract: | In the context of the green transition, universities have much to offer in joint green innovation projects with business, government and citizens. As hubs of diverse expertise, universities are uniquely placed to build interdisciplinary teams and bridge gaps between society and industry. Their regional ties also enable them to engage with the local ecosystem. This paper draws from ten international case studies of university partnerships with industry and society in green mobility, green energy and green products, services and processes. The comparative evidence gathered from interviews with representatives from these initiatives examines universities’ practices for green co-creation. Additionally, the paper outlines policy recommendations crucial to supporting these initiatives, essential for the global success of sustainable development efforts. |
| Keywords: | civil society, co-creation, Green transition, Industry-science linkages, Innovation, Innovation policy, STI policy, universities |
| JEL: | O30 O36 O38 |
| Date: | 2023–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:163-en&r=ene |
| By: | Dertwinkel-Kalt, Markus; Wey, Christian |
| JEL: | D04 L12 Q48 K33 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277575&r=ene |
| By: | Aurore Fransolet; Julien Vastenaekels |
| Abstract: | Just transition occupies an increasingly important place in political agendas from global to local levels. In recent years, this concept has evolved from a reactive social project aimed at protecting industrial workers affected by environmental regulations to a proactive social-ecological project aimed at simultaneously reducing social inequalities and environmental degradation. This ambition of bridging social justice and sustainability objectives is particularly relevant for the urban context, where social and environmental issues tend to concentrate and intertwine. However, questions of what a just and sustainable city could and should look like remain largely unexplored. While there exist several urban visions that centre social justice (most notably Susan Fainstein’s “Just City”), sustainability issues are not central to these visions. At the same time, it remains unclear whether and how urban visions that do focus on sustainability (e.g. sustainable cities, eco-cities, green cities, low-carbon cities.) consider social justice concerns. This research has two main goals: first, to identify and analyse the role of sustainability in the prominent just city visions and, second, to examine visions of sustainable cities and their conceptualization of justice. The research is based on an analysis of several seminal texts on just cities and sustainable city visions. The visions are analysed through a framework that highlights considerations of distributional, procedural and recognition-based justice. By analysing the place of sustainability within just city visions and the place of social justice in sustainable city visions, we give direction to and open discussion about the contours of possible just and sustainable urban futures. |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/364471&r=ene |
| By: | Stefan Jestl (The Vienna Institute for International Economic Studies, wiiw); Roman Römisch (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | The paper analyses drivers of migration in carbon-intensive and non-carbon-intensive regions in the EU. Using a mix of econometric methods, such as spatial panel and spatial cross-sectional methods, as well as geographically weighted regressions on data for EU NUTS-2 and NUTS-3 regions, the results indicate that particularly carbon-intensive regions in Central and Eastern Europe are not only challenged by a potential decline in carbon-intensive employment but also by outward migration flows that could diminish their prospects for longer-term economic prosperity. From a policy point of view, the results indicate that policies focusing on the replacement of the lost jobs in carbon-intensive industries might not be enough for the carbon-intensive regions in Central and Eastern Europe. Instead, these regions need a simultaneous package of additional policies to improve their attractiveness. |
| Keywords: | carbon-intensive regions, green transition, regional migration |
| JEL: | Q50 R11 R23 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:wii:wpaper:236&r=ene |
| By: | Vulović, Marina |
| Abstract: | The economic and financial crisis of 2008 disrupted the European Union's (EU) enlargement policy for the Western Balkans. At least since that time, the region has seen greater involvement by economic actors from non-EU countries such as China, Russia, Turkey and the United Arab Emirates (UAE). Their engagement has been most evident in the areas of direct investment, trade and energy security. Investments from these countries can increase the risk of 'corrosive capital', which could have a negative impact on the development of the rule of law and democracy in the Western Balkans. In view of a visibly intensifying rivalry between the EU on the one hand and Russia and China on the other, the question therefore arises as to how the EU can react to and strategically counteract the intensified economic interconnectedness of the Western Balkans with these actors. |
| Keywords: | Western Balkans, Western Balkan countries, European Union, EU, China, Russia, Turkey, United Arab Emirates, UAE, direct investment, trade relations, energy security, investment in renewable energy, gradual EU accession, EU enlargement process, Instrument for Pre-Accession Assistance, IPA, Economic and Investment Plan, EIP |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:279922&r=ene |
| By: | Batabyal, Amitrajeet |
| Abstract: | In this short paper, I briefly discuss the economic theory of externalities. After first defining the concept, I pay attention to the history of this concept, the way in which it has been conceptualized, new developments, and the contemporary policy relevance of externalities and their regulation. |
| Keywords: | Global Externality, Negative Externality, Policy, Positive Externality, Regulation |
| JEL: | H20 Q50 |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119233&r=ene |
| By: | Fangzhi Wang (School of Management and Economics; Beijing Institute of Technology); Hua Liao (School of Management and Economics; Beijing Institute of Technology); Richard S.J. Tol (Department of Economics, University of Sussex, BN1 9SL Falmer, United Kingdom) |
| Abstract: | We investigate optimal carbon abatement in a dynamic general equilibrium climate-economy model with endogenous structural change. By differentiating the production of investment from consumption, we show that social cost of carbon can be conceived as a reduction in physical capital. In addition, we distinguish two final sectors in terms of productivity growth and climate vulnerability. We theoretically show that heterogeneous climate vulnerability results in a climate-induced version of Baumol’s cost disease. Further, if climate-vulnerable sectors have high (low) productivity growth, climate impact can either ameliorate (aggravate) the Baumol’s cost disease, call for less (more) stringent climate policy. We conclude that carbon abatement should not only factor in unpriced climate capital, but also be tailored to Baumol’s cost and climate diseases. |
| Keywords: | Structural change, Climate capital, Integrated assessment model, Social cost of carbon, Baumol’s cost disease |
| JEL: | O41 O44 Q54 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susewp:0823&r=ene |
| By: | Ringel, Marc |
| Abstract: | Climate change entails many situations of tele-coupling. We analyze an example in the field of European climate and energy policy. The EU aims at an almost full decarbonisation of its economy by 2050. Achieving this objective asks for transforming the energy sectors of EU Member States. These are responsible for 80% of carbon emissions. Further to this policy coupling, the EU transformation objectives have to be implemented by the Member States, regions and local actors. This proves especially complex in the field of energy efficiency. Here, a variety of policy instruments and actors are in place. In our contribution, we investigate in the question how multi-level governance arrangements in the energy efficiency field are designed. We focus on Germany as example for a federal state setting. Our review method comprises literature content analysis, primary sources, expert interviews and an in-depth screening of the German Sustainable Energy Action Plans. We find that formal vertical coordination has been successfully backed up by horizontal and especially informal governance mechanisms, leading to a model of polycentric governance. This model might serve as blueprint for other multi-level governance arrangements. Yet, we find that the “last mile” of this coordination still needs strengthening: Local actors need more active engaging and empowering to reap the full potential of the governance arrangements. |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:141593&r=ene |
| By: | Rodríguez-Pose, Andrés; Bartalucci, Federico |
| Abstract: | The impacts of climate change are unevenly distributed across territories. Less is known about the potential effects of climate policies aimed at mitigating the negative consequences of climate change while transitioning economies towards low-carbon standards. This paper presents an analytical framework for identifying and assessing the regional impacts of the green transition. We develop a Regional Green Transition Vulnerability Index, a composite measure of the regional vulnerability of European regions to the socio-economic reconfigurations prompted by the green transition. The index brings to light strong regional variations in vulnerability, with less developed, peri-urban and rural regions in Southern and Eastern Europe more exposed to the foreseeable changes brought about by the green transition. We also draw attention to the potential rise of pockets of growing ‘green’ discontent, especially if the green transition contributes, as is likely to be the case, to leaving already left-behind regions further behind. |
| Keywords: | green transition; environment; left-behind regions; development trap; European Union |
| JEL: | O56 R11 |
| Date: | 2023–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120536&r=ene |
| By: | Qing Li (Department of Economics and Finance, SILC Business School, Shanghai University); Kexing Yu (Department of Economics and Finance, SILC Business School, Shanghai University); Yanrui Wu (Business School, The University of Western Australia) |
| Abstract: | This paper aims to re-estimate green total factor productivity (GTFP) with the consideration of intangible capital in Chinese provinces during 2003 and 2017. Intangible capital is broadly defined and categorised into computerised information, innovative property and economic competency property. The finding suggests that the conventional GTFP is underestimated especially during the post-financial crisis period in China. It is also found that technical efficiency, which shows the trend of deterioration without capitalising intangibles, improves steadily and jointly with technological progress contributes to the improvement of productivity. The mismeasurement of GTFP is more severe in developed regions in China where intangible investment is more emphasised. Furthermore, regional GTFP shows the trend of convergence after intangible capital is incorporated and the rate of convergence turns to be faster in coastal regions than that in the interior. |
| Keywords: | Green total factor productivity, intangible capital, data envelopment analysis, China |
| JEL: | O47 O34 R11 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:23-13&r=ene |
| By: | Fleiter, Jannik (RWTH Aachen university); Atasoy, Ayse Tugba (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | In this paper, we examine the significance of compliance costs in the context of solar photovoltaics deployment and installed capacity decisions by private households in Germany. We investigate possible adverse effects of feed-in remuneration schemes induced by tax compliance costs. More specifically, we study how private households respond to a tax policy instruction issued by the German Federal Ministry of Finance in June 2021, which enables to avoid the tax compliance obligations if the installed capacity does not exceed 10 kWp. A decision model and two different empirical models are employed to show how such compliance costs may distort both deployment decisions and capacity choices. We find that the tax instruction led to a change in the capacity distribution of newly built PV systems towards 50-65% intensified excess bunching slightly below 10 kWp, leading to inefficient use of rooftop space. Lack of crosssectional variation in the data and a large number of confounding events in the observation period calls for further research to corroborate our findings. |
| Keywords: | Feed-in tariff; Prosumer household; Solar photovoltaics; Compliance cost; Attribute-based regulation; Bunching; Regression discontinuity (in time) approach; |
| JEL: | C14 D12 O33 Q42 Q48 |
| Date: | 2023–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2023_008&r=ene |
| By: | Tatyana Deryugina; Julian Reif |
| Abstract: | Many environmental hazards produce health effects that take years to arise, but quasi-experimental studies typically measure outcomes and treatment over short time periods. We develop a new approach to overcome this challenge and use it to gauge the effect of exposure to air pollution on US life expectancy. Using changes in wind direction as an instrument for daily sulfur dioxide levels, we first characterize the short-run mortality effects of acute exposure during the time period 1972-1988. Exposure causes two distinct mortality patterns: a short-run mortality displacement effect, and a persistent accelerated aging effect. We then incorporate our estimates into a flexible health production model to quantify the lifelong effects of chronic air pollution exposure for a cohort born in 1972. Model calculations of the effect of chronic exposure on life expectancy are 7-8 times larger than the effect implied by simple extrapolation of our short-run empirical estimates. Ninety percent of the survival benefits accrue after the first fifty years of life, implying that most of the 1970 Clean Air Act's health benefits have yet to emerge for cohorts born after its passage. |
| JEL: | I18 Q53 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31858&r=ene |
| By: | Mr. Damien Capelle; Mr. Divya Kirti; Mr. Nicola Pierri; Mr. German Villegas Bauer |
| Abstract: | Using self-reported data on emissions for a global sample of 4, 000 large, listed firms, we document large heterogeneity in environmental performance within the same industry and country. Laggards—firms with high emissions relative to the scale of their operations—are larger, operate older physical capital stocks, are less knowledge intensive and productive, and adopt worse management practices. To rationalize these findings, we build a novel general equilibrium heterogeneous-firm model in which firms choose capital vintages and R&D expenditure and hence emissions. The model matches the full empirical distribution of firm-level heterogeneity among other moments. Our counter-factual analysis shows that this heterogeneity matters for assessing the macroeconomic costs of mitigation policies, the channels through which policies act, and their distributional effects. We also quantify the gains from technology transfers to EMDEs. |
| Keywords: | Climate Change; Productivity; Technology Adoption; Capital Vintages; Emissions |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/242&r=ene |
| By: | Yanfei Li (Economic Research Institute for ASEAN and East Asia (ERIA)); Jia Zhao (Hunan University of Technology and Business); Jianjun Yan (Hunan University of Technology and Business) |
| Abstract: | Currently, major economies are competing on the technological and industrial development of fuel cell electric vehicles (FCEVs). This paper discusses the relationship between the patent value of FCEVs and the commercialisation of this technology. First, the patent data of FCEVs are analysed, focusing on data of China, Germany, Japan, the Republic of Korea, and the United States. Then, the paper constructs the FCEV patent value index framework based on the technological value and economic value of patents. Finally, this paper conducts an empirical study to analyse the influence of patent value on the development of the FCEV industry. It is found that, under the current situation, individual patent value can significantly promote the development of the FCEV industry, whilst the gross patent value of a certain country even has a negative impact. In addition, the increase of hydrogen infrastructure, research and development expenditure, and market demand will significantly promote the development of the FCEV industry. The development level of related industries such as the battery electric vehicle industry and the reduction of environmental pollution are also significant drivers of the development of FCEVs |
| Keywords: | FCEV, patent value, industry development |
| Date: | 2023–06–09 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:dp-2023-05&r=ene |
| By: | Naef, Alain |
| Abstract: | Regulators are starting to question what it means for an investment vehicle to be labelled ESG (Environmental, social, and corporate governance). Also, retail climate-conscious investors have a right to have clear information on their investments. Here I analysed all the large equity Exchange Traded Funds (ETFs) labelled as ESG available at the two largest investors in the world: Blackrock and Vanguard. For Blackrock, out of 82 funds analysed, only 9% did not invest in fossil fuel companies. Blackrock ESG funds include investments in Saudi Aramco, Gazprom or Shell. But they exclude ExxonMobil or BP. This suggests a best-in-class approach by the fund manager, picking only certain fossil fuel companies that they see as generating less harm. But it is unclear what the criteria used are. For Vanguard, funds listed as ESG did not contain fossil fuel investment. Yet this needs to be nuanced as information provided by Vanguard on investments is less transparent and Vanguard offers fewer ESG funds. |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:45xyv&r=ene |
| By: | Alessio D’Amato (University of Rome Tor Vergata); Roberta Sestini (Tuscia University) |
| Abstract: | We investigate an asymmetric duopoly featuring two polluting firms that are heterogeneous in terms of production efficiency. The less efficient firm performs abatement by buying an environmental good (EG) in exchange of a fixed fee, while the more efficient firm engages directly in abatement effort. The cost asymmetry across the two firms is therefore determined by the nature (fixed or variable) of abatement costs. In this set-up, we compare two environmental policy settings: one where the regulator commits to policy before observing abatement investment, and one where such commitment is not credible (i.e. time-consistency). We conclude that, in the latter setting, emission taxes are lower, whilst environmental innovation, aggregate profits and consumers’ surplus are enhanced with respect to the case with commitment. The welfare ranking is however not straightforward, as commitment may make society better off than under time-consistency, depending on the degree of technological asymmetry in product on. Moreover policy makers might be †trapped†in a time-consistent policy scenario, due to the interest of involved stakeholders, at the expense of environmental policy effectiveness. |
| Keywords: | Eco-industry, Environmental regulation, Time-consistent policies. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0423&r=ene |
| By: | Congressional Budget Office |
| Abstract: | To help reduce U.S. emissions of carbon dioxide (CO2), the federal government has provided financial support for more than a decade to spur the development and use of technologies for capturing CO2 emissions. Recent legislation significantly increased that support. |
| JEL: | H23 Q48 Q58 |
| Date: | 2023–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:report:59345&r=ene |
| By: | Bo Zhao |
| Abstract: | This paper is the first to empirically examine the impact of a man-made disaster on consumer credit outcomes. It uses the 2018 Merrimack Valley natural gas explosions as a quasi-random natural experiment and shows that the explosions had a temporary negative effect on debt balances, credit limits, and the number of delinquencies, and did not affect credit scores. The decreases in debt balances and credit limits were likely driven by a decline in credit demand when the affected individuals faced severe life disruption, great uncertainty, and negative financial shocks associated with the disaster. It took some time for the explosions to have an impact on delinquencies, suggesting that the affected individuals may have received short-term forbearance or used default as a last resort. The lack of large, long-lasting effects of the explosions likely reflects the critical role that external assistance to the affected communities played in mitigating the disaster’s impact. |
| Keywords: | man-made disasters; household credit; consumer debt |
| JEL: | D14 G51 Q59 |
| Date: | 2023–09–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedbwp:97402&r=ene |
| By: | Amor Aniss Benmoussa, Reinhard Ellwanger, Stephen Snudden (Wilfrid Laurier University) |
| Abstract: | This paper proposes techniques to include information from the underlying nominal daily series in model-based forecasts of average real series. We apply these approaches to forecasts of the real price of crude oil. Models utilizing information from daily prices yield large forecast improvements and, in some cases, almost halve the forecast error compared to current specifications. We demonstrate for the first time that model-based forecasts of the real price of crude oil can outperform the traditional random walk forecast, which is the end-of-month no-change forecast, at short forecast horizons. |
| Keywords: | Forecasting and Prediction Methods, Temporal Aggregation, Oil Prices |
| JEL: | C18 C53 Q47 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:wlu:lcerpa:bm0141&r=ene |
| By: | Michael W. McCracken; Trần Khánh Ngân |
| Abstract: | An analysis of CPI data suggests that a measure of inflation excluding food and energy and a measure excluding only energy are useful predictors of overall inflation 12 months in the future. |
| Keywords: | core inflation; headline inflation; Consumer Price Index (CPI) |
| Date: | 2023–11–28 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:97414&r=ene |
| By: | Hansen, Gerrit |
| Abstract: | Entrenched positions, particularly between industrialised countries and some major emerging economies, dominated negotiations at June's UN Climate Change Conference in Bonn. Disagreements over the interpretation of 'common but differentiated responsibilities' and the principle of equity hindered substantial progress. Preparations for the first Global Stocktake (GST) to ratchet up the ambition under the Paris Agreement (2015), which will conclude at the 28th Conference of the Parties (COP28) in Dubai in December, did not meet expectations. At the same time, some emerging economies, notably China, attempted to lessen the significance of the IPCC's Sixth Assessment Report (AR6) as a common scientific basis. Should China maintain this position, it could result in negative consequences for the multilateral climate process well beyond COP28. |
| Keywords: | United Nations Framework Convention on Climate Change (UNFCCC), Climate Change Conference in Bonn 2023, Global Stocktake (GST), Paris Agreement 2015, 28th Conference of the Parties (COP28) in Dubai, IPCC Synthesis Report |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:279926&r=ene |
| By: | Alanda Venter (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Roula Inglesi-Lotz (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | Climate change is one of the most significant market failures transpiring and hampering human development progress. Government intervention is required to correct this market failure to avoid catastrophic repercussions. The UNDP indicated climate change has become a ``defining human development issue of our generation" (United Nations Development Program, 2022). Given the threat that climate change poses to human development, it is imperative to find effective ways to mitigate its targeted effects on human development. The study investigates how institutions might assist in reducing the harmful impacts of emissions on human development. Utilizing panel data analysis as the methodological foundation this study uses 36 countries for the time period 2003 to 2018. The results indicate that institutions can be a robust instrument in modulating climate change effects. |
| Keywords: | Climate Change, Institutions, Emissions, Institutional Quality, Inclusive Human Development, Inequality |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202334&r=ene |
| By: | Dahlström, Petter (Royal Institute of Technology); Lööf, Hans (Royal Institute of Technology); Sjöholm, Fredrik (Research Institute of Industrial Economics); Stephan, Andreas (Linnaeus University) |
| Abstract: | The net-zero agreement on carbon emission from Paris 2015 gives a key role to fossil-free energy technologies with an expected multifold growth rate over the coming decades, when successively replacing oil, coal, and gas. In this paper, we delve into the EU’s competitive advantage in the evolving trade war in clean energy, investigate European strengths and weaknesses in innovation and production, and discuss the impact of the upcoming trade war on the global warming challenge. Our results show that the EU has a strong position in innovation capabilities in the strategic net-zero technologies. However, this is not matched by production capabilities: EU has only a few firms among the leading manufacturers in net-zero technologies. |
| Keywords: | energy geopolitics; net-zero technologies; patents; innovation |
| JEL: | F02 O18 Q50 R10 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cesisp:0495&r=ene |
| By: | Afees A. Salisu (Centre for Econometrics & Applied Research, Ibadan, Nigeria; Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Ahamuefula E. Ogbonna (Centre for Econometrics & Applied Research, Ibadan, Nigeria); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Elie Bouri (School of Business, Lebanese American University, Lebanon) |
| Abstract: | The aim of this paper is to predict the daily return volatility of 28 developed and developing stock markets based on the monthly metrics of corresponding country and global energy-related uncertainty indexes (EUIs) recently proposed in the literature. Using the generalized autoregressive conditional heteroscedasticity-mixed data sampling (GARCH-MIDAS) framework, the results show that country-specific and global EUIs have predictive powers for stock returns volatility for the in-sample periods, with increased levels of EUIs exhibiting the tendency to heighten volatility. This predictability also withstands various out-of-sample forecast horizons, implying that EUI is a statistically relevant predictor of stock returns volatility in the out-of-sample analysis. Moreover, the forecast precision of the GARCH-MIDAS model is improved by incorporating global EUIs relatively more than country-specific EUIs. Our findings are robust to the choice of EUI proxies and sample definition. They have important implications for investors and policymakers concerned with stability in the global financial system and economy. |
| Keywords: | Monthly energy-related uncertainty index, daily stock returns volatility, developed and developing economies, GARCH-MIDAS; predictions |
| JEL: | C32 C53 G15 G17 Q43 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202336&r=ene |
| By: | Harrison Fell; Stephen P. Holland; Andrew J. Yates |
| Abstract: | Green hydrogen may decarbonize sectors which are difficult to electrify, and the recent Inflation Reduction Act (IRA) provides tax credits to encourage hydrogen production. We analyze a model in which hydrogen produced using electricity replaces natural gas. The electricity may be procured from dedicated renewables or from the grid with and without offsetting. In the absence of Pigouvian taxation, optimal hydrogen subsidies are positive if the unpriced externality from avoided natural gas is larger than the unpriced externality from electricity. With optimally differentiated subsidies, offsetting increases welfare. With undifferentiated subsidies, offsetting can decrease welfare, unless it is restricted to regions with higher unpriced electricity externalities. Short-run parameterization shows that the IRA's subsidy of $3/kg-H2 is rationalized: i) by hydrogen production from dedicated renewables if the social cost of carbon (SCC) is $500 or ii) by hydrogen production from the (relatively clean) grid in California with renewables offsetting (relatively dirty) electricity in the non-RGGI East if the SCC is $185. Allowing offsetting of production in California with renewables in any region does not reduce welfare, but the reverse does not hold. |
| JEL: | D62 Q58 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31902&r=ene |
| By: | Fahmida Khatun; Muntaseer Kamal; Foqoruddin Al Kabir; Nadia Nawrin; Mohammad Syful Hoque |
| Abstract: | The study aims to assess the state of green transition initiatives in Bangladesh’s textile and RMG sector. It seeks to gather evidence on the adoption of green practices, identify barriers and drivers for such initiatives, assess factory knowledge and capacity for green transformation, understand worker perceptions of green practices’ benefits, and provide recommendations to overcome challenges in making the sector more environmentally friendly and sustainable. Based on the findings from primary data collected from nationwide survey, key informant interviews (KIIs), and focus group discussions (FGDs), this study offers a set of recommendations for facilitating the green transition in Bangladesh’s textile and RMG sector. These recommendations are categorised into five broad themes: policy and regulatory measures, economic incentives, green finance, awareness and knowledge sharing, and skills and capacity development. It is important to note that these themes are not mutually exclusive and may overlap. |
| Keywords: | Green Transition, Textile Sector, RMG Sector, Renewable Energy, Green practices, green finance, knowledge sharing, skill development, Bangladesh |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:report:43&r=ene |
| By: | Thielges, Sonja |
| Abstract: | Climate experts are apprehensive about the approaching Presidency of the United Arab Emirates at this year's Conference of the Parties (COP) to the UN Framework Convention on Climate Change (UNFCCC). So far, the oil producer has not set a shining example with its climate protection efforts; and Sultan Al Jaber, this year's COP president, is head of the Abu Dhabi National Oil Company, one of the largest oil concerns in the world. To achieve the goal set by the Paris Climate Agreement of seeking to limit the average global temperature to 1.5 degrees Celsius above the pre-industrial level, the international community is striving for climate neutrality in the second half of this century. For this to happen, global energy systems will have to largely phase out fossil fuels, which, however, remain the dominant energy source. The fact that at present, a complete phase-out of fossil fuels cannot be expected is often lost in climate policy debates; in most countries, it is neither politically desired nor envisaged in long-term climate strategies. However, a speedy and orderly phase-down would have major benefits, such as providing the right investment incentives and supporting the necessary socioeconomic transformations in fossil-fuel producing countries. Today there is an urgent need to further develop the relevant policy and governance instruments as time is running out. |
| Keywords: | fossil energy, Conference of the Parties (COP), UN Framework Convention on Climate Change (UNFCCC), Paris Climate Agreement |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:279925&r=ene |
| By: | Subhash C. Ray (University of Connecticut); Shilpa Sethia (University of Connecticut, National Grid USA Service Company Inc.) |
| Abstract: | This paper develops a framework for centralized allocation of resources and production targets among firms that produce a bad output side-by-side with a good output. The production technology is specifically defined for thermal power generation sector that produces one good output (electricity) and one bad output (stack emissions) with one polluting input (coal) and two neutral inputs (installed capacity of power plants and labor). The undesirable output is modeled as an incidental by-product resulting from use of the polluting input. We use a modified Directional Distance Function of Aparicio, Pastor, and Ray (2013), formulated with non-parametric Data Envelopment Analysis, to determine the extent by which good output can be increased in each region while minimizing the use of polluting inputs and the level of bad output, by increasing efficiency through reallocation. For empirical illustration, we use data from major coal-fired power plants in India for fiscal year 2005-06 through 2014-15. Each stte within India is treated as a regional jurisdiction within which inputs (only coal and labor) and outputs are reallocated under alternative structural assumptions. Our findings reveal that the thermal power sector is sub-optimal, leaving a scope for emission reduction and increase in power generation in different states of India. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:uct:uconnp:2023-08&r=ene |
| By: | Marco A. Marini (Sapienza University of Rome); Samuel Nocito (Sapienza University of Rome) |
| Abstract: | We investigate whether climate activism favors pro-environmental consumption by examining the impact of Fridays for Future (FFF) protests in Italy on second-hand automobile transactions in the strike-affected areas. Leveraging data on 10 million automobile transactions occurring before and after FFF, we exploit rainfall on the day of the events as exogenous source of attendance variation. Our findings reveal that local participation to the events is associated with a reduction in the per capita CO2 emissions of purchased cars, an uptick in the market share of low-emission vehicles and a corresponding decrease in the market share of high-emission counterparts. Notably, we uncover heterogeneous effects across gender and age groups. Results are primarily driven by a rise in the purchase of petrol cars, with electric cars contributing to a lesser extent, thereby displacing the demand for diesel vehicles. This evidence indicates substitution effects between goods prospectively subject to more stringent environmental regulations toward those obeying milder restrictions. The study provides valuable insights into the mechanisms underlying individuals’ consumption choices under the influence of social protests. |
| Keywords: | Fridays for Future, climate activism, green consumption, carbon emissions |
| JEL: | D12 D91 Q50 Q53 R41 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2023.24&r=ene |
| By: | Stegmaier, Vincent; Krause, Melanie |
| JEL: | Q40 D72 R14 O18 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277671&r=ene |
| By: | Davide Bazzana (Department of Economics and Management, University of Brescia and Fondazione Eni Enrico Mattei); Nicola Comincioli (Department of Economics and Management, University of Brescia and Fondazione Eni Enrico Mattei); Camilla Gusperti (Fondazione Eni Enrico Mattei); Demis Legrenzi (Department of Economics and Management, University of Brescia and Fondazione Eni Enrico Mattei); Massimiliano Rizzati (Department of Economics and Management, University of Brescia and Fondazione Eni Enrico Mattei); Sergio Vergalli (Department of Economics and Management, University of Brescia and Fondazione Eni Enrico Mattei) |
| Abstract: | Carbon Capture Utilization and Storage (CCUS) stands as a pivotal technology crucial for achieving the most ambitious climate objectives. Despite its prominent inclusion in energy mix projections, its current deployment falls short of the requisite level. Additionally, uncertainties surrounding future developments pose potential obstacles to its optimal diffusion. This study addresses two primary shortcomings that could impede the widespread adoption of CCUS. Firstly, it investigates how investments in CCUS technologies either compete with or complement other green research and development (R&D) activities. Secondly, it explores how the heterogeneity among different economies and the factors influencing the technology might lead to alternative configurations compared to the current trajectory. To address these issues, this study introduces CCUS into a regional Integrated Assessment Model (IAM) incorporating endogenous green R&D and heterogeneous cost functions. The model generates optimal pathways for both CCUS and green R&D, revealing a significant challenge: an insufficient valuation of R&D costs could potentially displace all investment in CCUS. Furthermore, the distribution of CCUS capital across regions by the end of the century necessitates substantial investments from regions with currently lower values, such as Europe and lower-income countries. This research underscores the imperative need for policies that mitigate uncertainties surrounding future technologies and coordinate contemporary state investments. Such policies are essential for CCUS to attain the envisaged contributions to emission reduction targets. |
| Keywords: | Carbon Capture Utilization and Storage (CCUS), Integrated Assessment Model (IAM), Green Research and Development (R&D), Climate Objectives, Technological Uncertainties, Regional Disparities, Emission Reduction Targets |
| JEL: | Q53 Q54 O32 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2023.25&r=ene |
| By: | Kingsley I. Okere (Gregory University, Uturu, Nigeria); Stephen K. Dimnwobi (Nnamdi Azikiwe University, Awka, Nigeria); Chukwunonso Ekesiobi (Igbariam, Nigeria); Favour C. Onuoha (Evangel University Akaeze, Nigeria) |
| Abstract: | In a rapidly changing world marked by environmental degradation and governance disparities, understanding their impact on African women’s participation in the labor force remains a critical puzzle. This research seeks to unveil the intricate connections between pollution, governance quality, and women’s economic engagement in Africa, shedding light on vital pathways to empower women, mitigate pollution’s impact, and drive sustainable development in the region. Specifically, this study evaluates the impacts of governance quality and environmental pollution on gender economic outcomes in Sub-Saharan Africa (SSA) using data from 28 nations spanning 1996 to 2020. The study employs the dynamic panel threshold model. The key results reveal a negative and significant influence of ecological footprint on female economic participation. Furthermore, the dynamic threshold analysis reveals that environmental degradation undermines female labour engagement irrespective of the threshold level. The study also showed that below the threshold level, the interaction between governance quality variables and the ecological footprint exacerbates the negative impact of the ecological footprint on women’s economic participation. Above the threshold level, the interaction between governance quality variables and the ecological footprint mitigates the negative impact. Overall, key recommendations like improved pollution control measures, inclusive governance, and effecting targeted policies and programs to empower women economically, among others, are proffered to contribute to the improvement in governance, environmental sustainability, and gender economic outcomes in SSA. |
| Keywords: | Governance quality, Environmental pollution, Gender economic outcomes, Sub-Saharan Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:aak:wpaper:23/016&r=ene |
| By: | Olga, Evseeva |
| Abstract: | The article analyzes and compares the forecasts of the development of the world oil market for the period up to 2040, made in 2022 and 2023 by BP oil Company, the International Energy Agency and OPEC, their main conclusions and scenario solutions obtained in the forecasts. |
| Keywords: | geopolitics, forecasting subjects, sanctions, scenarios, forecast, oil market, world oil demand, world oil supply, oil price, trends |
| JEL: | Q47 |
| Date: | 2023–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119260&r=ene |
| By: | Filkin, Mikhail; Bozhko, Maksim |
| Abstract: | The article discusses the technology of operation of distributed ledger algorithms (blockchain) and smart contracts as applied to the energy industry. It is shown how the advantages of technology can help optimize the energy industry amid ongoing energy transition. Examples of global projects for implementing blockchain into existing or new energy systems are reviewed, and risks and obstacles associated with the implementation of blockchain platform solutions in energy systems are discussed. |
| Keywords: | energy industry, blockchain, distributed ledger, energy transition, smart contract, electricity, decentralization |
| JEL: | L94 Q40 |
| Date: | 2023–10–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119244&r=ene |
| By: | Filkin, Mikhail |
| Abstract: | The article is devoted to the study of a number of government programs of the People’s Republic of China, which provided the country with world leadership in the development of solar energy. Since 2014, China has set goals for renewable energy electrification and poverty alleviation in poor regions of the country. It seems that a number of aspects of these programs may be useful in the development of Russian strategies for the development of the renewable electricity. |
| Keywords: | solar energy, China, photovoltaic generation, government program, renewable energy source, poverty alleviation, regional development |
| JEL: | L94 O25 |
| Date: | 2023–07–31 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119229&r=ene |
| By: | Olga, Evseeva |
| Abstract: | Predicting the global oil market for the long term, both oil companies and analytical centers use a systematic approach, striving to take into account all the main factors affecting the sensitive oil market. Each new factor affects the market in a new way, setting new vectors of development or restrictions. The climate factor that had been in effect until recently, which prompted the global energy market to restructure taking into account the gradual reduction of CO2 emissions, was replaced by a pandemic factor that limited the development of demand for oil. The latest recent factor was the factor of political decisions related to the escalation of the conflict between Russia and Ukraine, which resulted in unprecedented sanctions pressure on the Russian economy. The forecasting entities represented by BP Oil Company, the International Energy Agency and OPEC have once again revised their forecasts for the development of the oil market. This article is devoted to the analysis of these forecasts, as well as comparison with previous forecasts made after the pandemic. |
| Keywords: | pandemic, geopolitics, forecasting subjects, sanctions, scenarios, forecast, oil market, world oil demand, world oil supply, oil price, oil companies, trends |
| JEL: | Q47 |
| Date: | 2023–06–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119259&r=ene |
| By: | Wolf-Peter Schill; Alexander Roth; Adeline Guéret; Felix Schmidt |
| Abstract: | Mit ambitionierten energiepolitischen Zielen hat die Ampel-Regierung vor zwei Jahren ihre Arbeit aufgenommen. Zur Halbzeit der Legislaturperiode ist die Erfolgsbilanz gemischt – in einzelnen Bereichen sind gute Fortschritte erzielt worden, in anderen klaffen große Lücken zwischen Ist- und Sollzustand. Der Ampel-Monitor Energiewende des Deutschen Instituts für Wirtschaftsforschung (DIW Berlin) zeigt auf, wo wir heute bei wichtigen Technologien für die Transformation zur Klimaneutralität stehen. Diese Kurzstudie bietet zunächst eine Übersicht verschiedener Indikatoren. Es folgt ein detaillierter Blick auf die Dynamik einzelner Entwicklungen: Während Deutschland etwa bei der Photovoltaik auf einem guten Weg ist, liegt der Ausbau der Windkraft an Land derzeit deutlich unter dem Zielpfad. Auch bei der Elektromobilität geht es zu langsam voran. Das Tempo der Energiewende muss deutlich gesteigert werden, um die deutschen Klimaschutzverpflichtungen einzuhalten. Wenn die Regierung die Anstrengungen erhöht und konsequent handelt, können die gesetzten Ziele aber noch erreicht werden. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwakt:90de&r=ene |
| By: | Vuong, Quan-Hoang; La, Viet-Phuong; Nguyen, Minh-Hoang |
| Abstract: | The importance of addressing the existential threat to humanity, climate change, has grown remarkedly in recent years while conflicting views and interests in societies exist. Therefore, climate change agendas have been weaponized to varying degrees, ranging from the international level between countries to the domestic level among political parties. In such contexts, climate change agendas are predominantly driven by political or economic ambitions, sometimes unconnected to concerns for environmental sustainability. Consequently, it can result in an environment that fosters antagonism and disputes over power and position and increases the risk of prolonged confrontations, hindering the collective global efforts to mitigate and adapt to climate change. Through the current discourse, we aim to provide a preliminary definition of the weaponization of climate change and environmental degradation and examine its risks and consequences on international relations, political dynamics, public perception, and the comprehensive integrity of climate action. We also recommend embracing a globally coordinated, scientifically substantiated approach to circumvent climate change by building an eco-surplus cultural value system. |
| Date: | 2023–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:v9qrm&r=ene |