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on Energy Economics |
| By: | Blázquez, Mario (Dept. of Business and Management Science, Norwegian School of Economics); Hovdahl, Isabel (Dept. of Business and Management Science, Norwegian School of Economics); Arve, Malin (Dept. of Business and Management Science, Norwegian School of Economics); Bjørndal, Endre (Dept. of Business and Management Science, Norwegian School of Economics); Bjørndal, Mette (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | We study the effect of introducing a market for green energy attributes on the market for the energy itself. In Europe, renewable energy producers receive Guarantees of Origin (GOs) that they can sell to consumers who wish to declare their electricity consumption as “green”. In a model of price competition, we show how the introduction of such a GO market can increase competition in the spot electricity market, leading to reduced electricity prices. In the current market design, the trade of GOs is not restricted by the physical transmission capacity in the spot electricity market. However, since the production capacity of GOs is still limited by the total dispatch of electricity, suppliers have incentives to compete more fiercely in the spot market. This pro-competitive effect disappears if the physical transmission capacity is also imposed on the GO market. |
| Keywords: | Electricity market; competition; pricing; guarantees of origin |
| JEL: | D43 L13 L94 Q41 Q48 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2023_024&r=ene |
| By: | Lionel Fontagné; Philippe Martin; Gianluca Orefice |
| Abstract: | Based on firm level data in the French manufacturing sector, we find that firms adapt quickly, strongly and through multiple channels to energy shocks, even though electricity and gas bills represent a small share of their total costs. Over the period 1996-2019, faced with an idiosyncratic energy price increase, firms reduce their energy demand, improve their energy efficiency, increase intermediate inputs imports and optimize energy use across plants. Firms are also able to pass-through the cost shock fully into their export prices. Their production, exports and employment fall. A consequence of these multiple adjustment mechanisms is that the fall in profits is either non-significant, small or specific to only the most energy intensive firms. We also find that the impact of electricity shocks has weakened over time, suggesting that only firms able to adapt their production process to energy cost shocks have survived. Importantly, when faced with large electricity and gas price increases, firms are less able to reduce their consumption. These results shed light on the mechanisms of resilience of the European manufacturing sector in the context of the present energy crisis. |
| Keywords: | Energy Crisis, Employment, Production, Competitiveness, Electricity, Gas |
| JEL: | L6 Q41 Q43 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:929&r=ene |
| By: | Ekaterina Alekhanova (Department of Economics, Carleton University); Maya Papineau (Department of Economics, Carleton University); Kareman Yassin (Department of Economics, University of Ottawa) |
| Abstract: | We assess realized energy and air leakage changes in homes constructed before and after new building energy code adoptions in three Canadian provinces: Ontario, New Brunswick, and Alberta. We find no energy or air leakage reductions attributable to more stringent code requirements. There is no evidence that natural gas consumption declined among houses built up to five years before or four years after a code change. Instead, a generalized improvement in residential electricity consumption and air leakage rates is observable at least three to five years before any new code adoptions, depending on the province. These pre-existing trends in electricity consumption and air leakage may point to changes in building industry practice preceding new building code adoptions, though further investigation is required to assess the drivers of these changes. The estimated energy savings are also not in line with ex-ante engineering projections, which predicted natural gas savings of about 10% and little to no electricity savings. |
| Keywords: | Building Codes, Residential Energy Consumption, Building Simulation, Energy Efficiency Policy, Climate Change, Net Zero |
| Date: | 2023–10–30 |
| URL: | http://d.repec.org/n?u=RePEc:car:carecp:23-06&r=ene |
| By: | Yvan Guillemette; Jean Château |
| Abstract: | This paper describes the latest update of the OECD’s long-term scenarios, which are done every 2-3 years to quantify some of the most important long-term macroeconomic trends and policy challenges facing the global economy. For the first time, this update incorporates the effect of the low-carbon energy transition. The study first presents a baseline projection that acts as a business-as-usual scenario against which the economic effects of the transition can be gauged. Next, it outlines extensions to the OECD global long-term model (LTM) to consider energy use and associated CO2 emissions and describes an alternative stylised scenario in which OECD and non-OECD G20 countries successfully transition to low-carbon energy in a way broadly consistent with a net-zero target for greenhouse gas emissions by 2050. These extensions rely on a variety of sources, but most crucially on simulations of CO2 mitigation costs with the OECD’s ENV-Linkages model. Finally, the model’s extensions are used to explore some fiscal implications of the energy transition, in particular how the negative economic effects of carbon mitigation could be alleviated by fiscal or other structural reforms. |
| Keywords: | CO2 emissions, CO2 mitigation costs, energy transition, fiscal pressure, fiscal sustainability, long-term projection, long-term scenario, revenue recycling |
| JEL: | H68 J11 O4 Q43 |
| Date: | 2023–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaab:33-en&r=ene |
| By: | Nelly Petkova; Krzysztof Michalak; Yuliia Oharenko |
| Abstract: | This study evaluates the progress of fossil-fuel subsidy reform in Ukraine since its launch in 2016 using the OECD “bottom-up”, inventory, approach. It also identifies major subsidy schemes that need significant reform. The report reflects the energy subsidy policies and reforms in Ukraine prior to Russia’s full-scale invasion in February 2022. The analysis covers: budgetary transfers, government revenue foregone (or tax expenditure), induced transfers in the form of cross-subsidies or below market tariffs and transfer of risk to government. The study also covers fossil-fuels subsidies to production and consumption, particularly, for natural gas, coal and electricity generated from fossil fuels while support for energy efficiency and renewables is considered for comparative purposes. This report also briefly discusses the taxation and energy pricing policies in Ukraine that have had direct or indirect impact on the evolution of fossil-fuel subsidies in the country. Detailed estimates of all individual support measures are provided in the Annexes to the report. |
| Keywords: | energy sector, energy sector reform, energy taxation policy, fossil-fuel subsidies |
| JEL: | H23 H53 H61 H71 P18 Q35 Q41 Q48 |
| Date: | 2023–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:228-en&r=ene |
| By: | Sitarz, Joanna; Pahle, Michael; Osorio, Sebastian; Luderer, Gunnar; Pietzcker, Robert |
| Abstract: | Carbon prices in the EU emissions trading system (EU ETS) are a key instrument driving Europe’s decarbonization. Between 2017 and 2021, they surged tenfold, exceeding 80 €/tCO2 and reshaping investment decisions across the electricity and industry sectors. What has driven this increase is an open question. While it coincided with two significant reforms tightening the cap (“MSR reform” and “Fit for 55”), we argue that a reduced supply of allowances alone cannot fully explain the price rise. A further crucial aspect is that actors must have become more farsighted as the reform signaled policymakers’ credible long-term commitment to climate targets. This is consistent with model results that show historic prices can be better explained with myopic actors, while explaining prices after the reforms requires actors to be farsighted. To underline the role of credibility, we test what would happen if a crisis undermines policy credibility such that actors become myopic again, demonstrating that carbon prices could plummet and endanger the energy transition. |
| Keywords: | Carbon prices, EU Emissions Trading System (EU ETS), Myopia, Foresight, Market Stability Reserve (MSR), Policy Credibility, European Green Deal, Electricity Decarbonization |
| JEL: | Q48 Q58 D84 H23 E37 D78 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:280455&r=ene |
| By: | Davydova Altana (Department of Economics, Lomonosov Moscow State University) |
| Abstract: | The paper compares the economic effects of the introduction of a national carbon taxation and the emission trading system (ETS) between the EAEU and BRICS countries in the medium-term. We also add to this group of countries Uzbekistan, which has an observer status in the EAEU, and Turkmenistan, trade and economic partner of the EAEU. The static computable general equilibrium model GTAP-E is used. Targets for reducing emissions are formulated on the basis countries’ intermediate goals, according to the national documents under the Paris Agreement. The results of simulations show that in terms of real GDP, countries such as Belarus, Russia, Kyrgyzstan, Kazakhstan, Armenia, Brazil, and India prefer an emission trading scheme to national taxation. While for China, South Africa, Uzbekistan and Turkmenistan, participation in the ETS leads to a greater reduction in GDP. Since the second group of countries has lower abatement costs than the equilibrium carbon price under the ETS, in the ETS scenario they reduce emissions by a greater amount and sell emission permits. The analysis also shows which sectors increase production after the carbon regulation. A considerable increase in production and exports is observed in chemicals, nonferrous, ferrous metals in several BRICS and EAEU countries. Despite that these industries are energy-intensive, countries decrease emissions by reducing production in the energy sectors. These industries can be potential joint comparative advantages in the context of declining demand for traditional energy sources. The findings can be useful for the integration policy. |
| Keywords: | Computable general equilibrium model, Carbon regulation, ????2 emissions, BRICS, EAEU, integrational policy |
| JEL: | D58 F11 Q43 Q48 Q56 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:upa:wpaper:0058&r=ene |
| By: | Konstantins Benkovskis (Latvijas Banka); Dzintars Jaunzems (Latvijas Banka); Olegs Matvejevs (Latvijas Banka) |
| Abstract: | We propose a novel method for modelling energy substitution in CGE models using energy processes defined according to the purposes of energy use. The purpose-based approach is superior for modelling the green transition because it closely mimics firms’ decisions regarding switching energy sources and is more parsimonious, relying on fewer industry-specific elasticities in the production structure. Latvia’s Computable General Equilibrium (CGE) model is an integral part of the joint CGE-EUROMOD modelling system used for policy simulations at Latvijas Banka. We improve this model by 1) incorporating endogenous substitution of energy resources by enterprises through the proposed purpose-based approach, 2) including the accounting of greenhouse gas (GHG) emissions generated by all public and private sector entities, and 3) introducing explicit modelling of expenses related to these emissions both due to state-level levies and participation in the EU Emissions Trading Scheme (EU ETS). To illustrate the advantages of the augmented model, we simulate a scenario in which Latvia follows a linear path to achieve GHG emissions reduction consistent with its European Green Deal objectives by 2030 achieved solely through carbon pricing. The analysis of this scenario suggests that over a three-year horizon ending in 2025, the resulting cumulative welfare losses would exceed 2% in the case of an uncompensated carbon tax (resulting in a budget balance improvement of 2.6% of GDP) or amount to 0.3% if government consumption is increased to keep the budget balance constant. If instead the size of the public sector is maintained and the higher carbon tax is compensated by a VAT rate cut, economic activity expands by 1% but GHG emissions fall by 40% less. |
| Keywords: | CGE model, Latvia, GHG emissions, Emissions Trading Scheme, carbon tax, energy substitution, green transformation, energy transition, European Green Deal, EUROMOD |
| JEL: | C68 Q58 Q48 Q54 Q41 |
| Date: | 2023–12–18 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:wpaper:202307&r=ene |
| By: | Grafström, Jonas (The Ratio Institute) |
| Abstract: | This paper examines the influence of volatile electricity prices on the industrial landscape of Europe. The record-breaking prices experienced in the European wholesale electricity market throughout 2022, along with contributing factors such as the surging gas prices, nuclear power limitations, and reduced hydroelectric output, present complexities and challenges to Europe at the same time as a new wave of green industrialization is forming. Drawing from European Commission- and Eurostat data a new tool, the Green Industrial Location Attractiveness Index (GILAI) is introduced that should be helpful for predicting future green industrial establishments. The top three countries for green industrial establishments in Europe are Sweden, Finland, and Austria. A North/South European split with northern countries achieving higher rankings, while southern countries grapple with several factors. Through this analysis, the aim is to contribute to a better understanding of the evolving industrial landscape in Europe and identify strategies to enhance industry competitiveness and sustainability in the face of fluctuating electricity prices. |
| Keywords: | Electricity; Industry; Europe; Renewable; Transformation |
| JEL: | L94 Q41 Q42 Q54 |
| Date: | 2023–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:ratioi:0369&r=ene |
| By: | Sergei, Chernavskii |
| Abstract: | Many countries, for one reason or another, suffer from a shortage of fossil fuels, which have been the main source of primary energy in the world for more than 200 years. As early as the 1960s, nuclear power plants with lower production costs than fossil fuel condensing power plants began to be built. This created a widespread demand for nuclear power plants in many not only developed but also developing countries. However, the spread of nuclear power as a primary energy source has been very uneven. Periods of accelerated growth of nuclear power alternate with periods of deceleration and even stagnation. A wide palette of factors influencing both the growth of nuclear power (energy balance deficit, countries' desire for energy independence and reduction of energy supply costs, threat of global warming on Earth, depletion of fossil fuel resources, use of economies of scale, etc.) and its inhibition (assessment of the acceptability of nuclear energy as a primary energy source, lack of knowledge about the development of nuclear reactions in nuclear reactors, complexity of human and technical systems, serious a It is shown that a realistic, objective and comprehensive assessment of the whole palette of drivers and limiting factors of nuclear power growth requires an interdisciplinary approach and contributes to improving the quality of forecasting the development of nuclear power and society as a whole. |
| Keywords: | nuclear power, public welfare, energy demand, energy production costs, primary energy, accidents at nuclear power plants, acceptability, global climate warming, renewable energy sources, depletion of fossil fuel resources |
| JEL: | Q43 |
| Date: | 2023–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119263&r=ene |
| By: | Alice Di Bella; Federico Canti; Matteo Giacomo Prina; Valeria Casalicchio; Giampaolo Manzolini; Wolfram Sparber |
| Abstract: | In 2021, the European Commission has adopted the Fit-for-55 policy package, legally binding European countries to reduce their CO2 emissions by 55% with respect to 1990, a first step to achieve carbon neutrality in 2050. In this context, it is crucial to help national policymakers to choose the most appropriate technologies to achieve these goals and energy system modelling can be a valuable tool. This article presents a model of the Italian power system realized employing the open energy modelling framework Oemof. A Linear Programming Optimization is implemented to evaluate how to minimise system costs at decreasing CO2 emissions in 2030. The developed tool is applied to evaluate different research questions: i) pathway towards full decarbonization and power self-sufficiency of the electricity sector in Italy, ii) relevance of flexibility assets in power grids: li-ion batteries, hydrogen storage and transmission lines reinforcement. A 55% CO2 emissions reduction for the actual Italian power sector can be achieved through an increase of 30% of the total annual system cost. Full decarbonization can be reached with four times today's annual costs, which could be lowered with sector coupling and considering more technologies. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.17443&r=ene |
| By: | Jakob Lehr; Katrin Rehdanz |
| Abstract: | This paper represents an addition to the scanty empirical evidence relating to the impact of temperature on the manufacturing sector. To study the effect of temperature on CO2 emissions (energy use) and plants’ economic performance, we combine daily temperature information from 11, 000 German municipalities with the German census of the manufacturing industry for the period 2004 - 2017. We find that temperature affects industrial emissions significantly. Low temperatures cause a large and robust increase in CO2 emissions as a reflection of heating requirements. For example, one additional day with a mean temperature below -6°C increases the average plant’s emissions by ≈ 0.15% or 6t CO2 relative to a day with mean temperatures between 12°C and 15°C. Evidence for increased emissions from electricity consumption due to cooling needs is less consistent. We extend our analysis to encompass the effect of temperature on economic performance. While finding consistent evidence for a negative effect of cold days on gross output and labor productivity, results for hot days are mixed. Finally, we interpret our estimates against the backdrop of climate projections. |
| Keywords: | Temperature, Manufacturing, Climate Change, Energy Use, CO2 Emissions, Gross Output, Germany |
| JEL: | Q41 Q54 D22 L60 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_489&r=ene |
| By: | Jenn, Alan; Li, Xinwei |
| Abstract: | Vehicle electrification has attracted strong policy support in California due to its air quality and climate benefits from adoption. However, it is unclear whether these benefits are equitable across the state’s sensitive populations and socioeconomic groups and whether disadvantaged communities are able to take advantage of the emission savings and associated health benefits of electric vehicle (EV) adoption. In this study, we analyze the statewide health impacts from the reduction of on-road emissions reduction (from reducing gasoline powered cars) and the increase in power plant emissions (from EV charging) across disadvantaged communities (DACs) detected by using the environmental justice screening tool CalEnviroScreen. The results indicate that EV adoption will reduce statewide primary PM2.5 emissions by 24.02-25.05 kilotonnes and CO2 emissions by 1, 223-1, 255 megatonnes through 2045, and the overall monetized emission-related health benefits from decreased mortality and morbidity can be 2.52-2.76 billion dollars overall. However, the average per capita per year air pollution benefit in DACs is about $1.60 lower than that in the least 10% vulnerable communities in 2020, and this disparity expands to over $31 per capita per year in 2045, indicating that the benefits overlook some of the state's most vulnerable population, and suggesting clear distributive and equity impacts of existing EV support policies. This study contributes to our growing understanding of environmental justice rising from vehicle electrification, underscoring the need for policy frameworks that create a more equitable transportation system. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Electric vehicles, emissions, health impacts, environmental justice |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt5xv65775&r=ene |
| By: | Nandeeta Neerunjun (Univ. Grenoble Alpes, CNRS, INRAE, Grenoble INP, GAEL, 38000 Grenoble, France); Hubert Stahn (Aix-Marseille Univ., CNRS, AMSE, Marseille, France) |
| Abstract: | This paper is essentially based on the assumption that policies supporting investment in intermittent renewable technologies cannot be contingent on meteorological events causing this intermittence. This decision was taken by most policymakers to avoid overly complex policy prescriptions. But in doing so, the first-best energy mix may be out of reach. We compare, in a unified second-best setting, the feed-in tariff, renewable premiums and tradable green certificates policy. We consider a "two-period, S-state" model. The S states reflect intermittency. Production decisions for renewable electricity are taken prior to the resolution of the uncertainty while the fossil-fuel sector adjusts its decision in each state. Retailers buy electricity on a state-dependent wholesale market which they deliver to consumers according to a fixed-tariff or a real-time-pricing contract. All these elements matter in the efficiency assessment of these policies. |
| Keywords: | intermittency, renewables, feed-in tariff, premiums for renewable, tradable green certi ficates |
| JEL: | D24 D61 D62 Q41 Q42 Q48 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2335&r=ene |
| By: | Bellefontaine, Andre; Rich Steinmetz, Lindsay; Buffa, Valkyrie; Storment, David; Fraas, Arthur G. (Resources for the Future) |
| Abstract: | Decarbonizing the electric utility sector will require a substantial investment in renewable energy projects. The federal government has set the goal of reducing greenhouse gas emissions by half by 2030 and entirely by 2050. Investing in clean renewable energy is a vital part of realizing a goal of net zero-emissions. States have a key role in promoting the development of renewable energy facilities to replace fossil fuels in the electricity sector. They have established Renewable Portfolio Standards (RPSs) requiring that a certain percentage of electricity sold to customers must be from renewable sources; 31 states, Washington, DC, and three territories have adopted RPSs, and seven states and one territory have set renewable energy goals (Shields 2021). The time required to complete National Environmental Policy Act (NEPA) review of major infrastructure projects—including for renewable energy—has been a key concern in recent years. The recently enacted Fiscal Responsibility Act of 2023 (FRA) included a permitting reform provision that codified presumptive deadlines for completing NEPA reviews. At the end of July, CEQ issued a proposed NEPA rule implementing the FRA provisions.This case study examines the federal permitting processes affecting siting and construction of utility-scale solar projects to identify the possible barriers associated with achieving federal and state renewable energy goals. The Western Solar Plan defines utility-scale solar as having a nameplate capacity of 20 or more megawatts (MW). We used the 20 MW threshold to identify major utility-scale projects. We assembled a sample of 46 utility-scale solar projects completing NEPA review for 2005–2021. We believe this sample covers most—if not all—of the solar projects completing NEPA review over this period.We find that most of these projects completed formal NEPA review within two years. However, many of them required 8–10 years from filing an initial application to reach operational status. The delay in taking these projects from initial application to full operation often occurred before (in a prequel stage) and/or after formal NEPA review. Resolving potential NEPA issues before formal review has likely contributed to delays in the early prequel stage. We also examine the efforts of the Bureau of Land Management (BLM) to expedite review and find that a major BLM initiative—the Western Solar Plan launched in 2012—has yielded a disappointing record over its first 10 years.Section I provides background information on utility-scale solar facilities. Section II describes the NEPA process and associated reviews (Fish and Wildlife Service (FWS), US Army Corps of Engineers (USACE), etc.). Section III presents summary info on the projects that went through NEPA reviews and shows that many of the operational projects took 8–10 years (as of the end of 2021) from the initial application to reach operational status; Section IV outlines BLM’s actions, including the Western Solar Plan, to expedite its review process for siting solar projects on public lands. |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-45&r=ene |
| By: | Dahlström, Petter (Indek, Royal Institute of Technology); Lööf, Hans (Indek, Royal Institute of Technology); Sjöholm, Fredrik (Research Institute of Industrial Economics (IFN)); 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 Energy geopolitics; Net-zero technologies; Patents; Innovation |
| JEL: | F02 O18 Q50 R10 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:iuiwop:1483&r=ene |
| By: | Isabella Neuweg |
| Abstract: | The paper presents the understanding of and attitudes towards climate change and climate policies in Ukraine, using a survey on a representative sample of more than 1 500 Ukrainians. The survey was carried out between October 2021 and February 2022 and presents the situation before Russia’s large-scale invasion of Ukraine. The survey tests support for three main climate policies in detail: a green infrastructure programme, a carbon tax with cash transfers and a ban on combustion-engine cars. It shows that support for climate policies depends on three key factors: how people perceive the effectiveness of the policies in reducing emissions, how they perceive distributional impacts on lower-income households (inequality concerns), and if they think their household will gain or lose from the policy. The survey also shows that when citizens receive information that specifically addresses these concerns, they exhibit stronger support for the policy. How the policy is designed also matters: Ukrainians widely accept a carbon tax when its revenues finance green investments and/or compensate lower-income households. The paper highlights seven considerations for Ukraine policymakers to design measures that are effective and supported by citizens. Following Russia’s war of aggression and once conditions are right, Ukrainian policymakers can also use the survey results to guide the reform of the environmental tax system- one of the goals in Ukraine’s recovery and reform agenda. The survey in Ukraine that the paper describes was conducted as part of a large-scale OECD international survey of attitudes toward climate policies carried out on over 40 000 respondents in twenty countries. |
| JEL: | D78 H23 Q54 Q58 P48 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:229-en&r=ene |
| By: | Yukihide Kurakawa (Kanazawa Seiryo University.); Makoto Tanaka (National Graduate Institute for Policy Studies.) |
| Abstract: | This study demonstrates how market power in the day-ahead electricity market influences the balancing cost in incentive-based demand response (DR) programs. The marginal cost of DR in an incentive-based DR program corresponds to the marginal benefit of energy services that might be provided under baseline electricity consumption. We analyze a stylized Cournot oligopoly model and demonstrate that distortion of an imperfectly competitive day-ahead market generates additional social cost (welfare loss) in the balancing period by increasing the cost of DR. We further investigate the case where some firms in the day-ahead market can also benefit from power generation in the balancing period and demonstrate that the strategic behavior of these firms further decreases total supply in an imperfectly competitive day- ahead market. The results indicate that procompetitive policies in the day-ahead market will lower the cost of DR, which makes demand more flexible and yields additional welfare gains, thereby lowering the balancing cost during the balancing period. |
| Keywords: | Incentive-based demand response, Market power, Day-ahead electricity market, Demand-side flexibility |
| JEL: | L13 Q41 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:was:dpaper:2303&r=ene |
| By: | D, Silva S. K. B.; K.G.D, Piyumali; Perera, Rasitha Thilini Suranjana; Kaluarachchi, K.D. K. G; Munagamage, Thilini; R.M.R, Ahammed; P, Piyankarage C. S.; Shahmy, Seyed (National Science and Technology Commission); Karunaratne, Veranja |
| Abstract: | Renewable energy, energy storage, and green hydrogen (EES) in Sri Lanka have a significant relationship with the United Nations' Sustainable Development Goals (SDGs). This commentary aims to provide a critical perspective on the report's recommendations of the National Science and Technology Commission's Biennial Conference 2023 on Science and Technology (BISOST IX), the sub-thematic technical report on Clean Energy, and their alignment with the UN SDGs in the Sri Lankan context. The technical report provides insightful recommendations for Sri Lanka's energy sector under three main sections: renewable energy, energy storage, and green hydrogen. Also, it explores the potential of various renewable energy sources, energy storage systems, and green hydrogen as sustainable solutions to address the country's energy challenges with spill over effects that contribute the enterprise's job creation to the development of the economy. |
| Date: | 2023–10–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:72g43&r=ene |
| By: | Mahlkow, Hendrik; Wanner, Joschka |
| Abstract: | International trade is highly imbalanced both in terms of values and in terms of embodied carbon emissions. We show that the persistent current value trade imbalance patterns contribute to a higher level of global emissions compared to a world of balanced international trade. Specifically, we build a Ricardian quantitative trade model including sectoral input-output linkages, trade imbalances, fossil fuel extraction, and carbon emissions from fossil fuel combustion and use this framework to simulate counterfactual changes to countries' trade balances. For individual countries, the emission effects of removing their trade imbalances depend on the carbon intensities of their production and consumption patterns, as well as on their fossil resource abundance. Eliminating the Russian trade surplus and the US trade deficit would lead to the largest environmental benefits in terms of lower global emissions. Globally, the simultaneous removal of all trade imbalances would lower world carbon emissions by 0.9 percent or 295 million tons of carbon dioxide. |
| Keywords: | Carbon emissions, international trade, gravity |
| JEL: | F14 F18 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:280404&r=ene |
| By: | Jakob Lehr |
| Abstract: | Using the German census of the manufacturing industry, I analyze the impact of import competition on carbon emissions per unit of deflated sales (emission intensity). I combine precise information on firm-level CO2 emissions with sector-level trade flows. Looking at the period 1995 until 2017, I focus on the impact of the rise of Eastern Europe and China while addressing the endogeneity of trade flows with an instrumental variable approach. The baseline results suggest that a 1pp increase in the import penetration ratio caused a reduction of the average firms’ emission intensity by approximately 0.3%. This result implies that the rise of the joint East kept the average firm emission intensity 6% below the level it would have had in the absence of the East’s rise. I do not find strong indication for reallocation of production towards more efficient firms. Finally, I supplement the analysis by examining the effect of export opportunities due to the East’s rise. The results indicate that exporting to the East increased sales and, through that channel, lowered emission intensities. |
| Keywords: | CO2 Emission Intensity, Energy Efficiency, Import Competition, Manufacturing Firms, Environment, Germany |
| JEL: | F18 Q54 L60 D22 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_488&r=ene |
| By: | Srikanth, R; Bhatt, J R |
| Abstract: | Eighteen percent of the World's population lives in India with a per capita energy consumption equal to that of 1/8th of the Developed Countries. This paper explains the role of coal in achieving India's SDGs with energy security, and summarises potential pathways for India's low carbon development strategy to attain Net Zero by 2070. |
| Date: | 2023–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:f6dhe&r=ene |
| By: | Tal, Gil; Gamage, Tisura; Karanam, Vaishnavi; Garas, Dahlia |
| Keywords: | Engineering, electric vehicle, charging infrastructure, zero-emissions vehicle, DC fast charger |
| Date: | 2023–11–21 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt0z69n0x6&r=ene |
| By: | Anton Nakov (ECB and CEPR); Carlos Thomas (Banco de España) |
| Abstract: | We study the implications of climate change and the associated mitigation measures for optimal monetary policy in a canonical New Keynesian model with climate externalities. Provided they are set at their socially optimal level, carbon taxes pose no trade-offs for monetary policy: it is both feasible and optimal to fully stabilize inflation and the welfare-relevant output gap. More realistically, if carbon taxes are initially suboptimal, trade-offs arise between core and climate goals. These trade-offs however are resolved overwhelmingly in favor of price stability, even in scenarios of decades-long transitions to optimal carbon taxation. This reflects the untargeted, inefficient nature of (conventional) monetary policy as a climate instrument. In a model extension with financial frictions and central bank purchases of corporate bonds, we show that green tilting of purchases is optimal and accelerates the green transition. However, its effect on CO2 emissions and global temperatures is limited by the small size of eligible bonds’ spreads. |
| Keywords: | Ramsey optimal monetary policy, climate change externalities, Pigouvian carbon taxes, green QE |
| JEL: | E31 E32 Q54 Q58 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2334&r=ene |
| By: | Danon Alejandro M.; Diaz-Campo Cecilia S.; Gars Jared; Kestelman Borges Mariana; Zulli Lourdes |
| Abstract: | Understanding how electricity demand responds to price shocks is a key question for a number of actors along the electricity supply chain as well as policy makers, albeit its estimation present several challenges. In this paper, we exploit a natural experiment to estimate the short-run impact of a price shock on residential electricity consumption. In particular, in January of 2021 the utility company adopted a new tariff schedule whereby the fixed component of the tariff was organized in four tiers based on households’ annual moving average consumption, which we exploit in a regression-discontinuity design. Despite the large average price increases at each fixed-cost cutoff, we find no significant effect of the tariff change on subsequent electricity consumption around the three thresholds. This lack of demand response to prices suggests that non-price instruments may be more effective at influencing residential electricity consumption. |
| JEL: | L95 D12 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4639&r=ene |
| By: | Alessandro De Palma; Marco Faillo; Roberto Gabriele |
| Abstract: | This paper focuses on decentralized energy in Germany and how households’ environmental behavior in terms of energy consumption is shaped in these contexts. It sets out to gain a more precise understanding of whether decentralized energy initiatives are a good tool to promote the adoption of renewable energies and engagement in other sustainable behaviors to mitigate global warming. This study would be one of the first to investigate the effect of living in 100% Renewable Energy Regions, i.e., regions committed to achieving the status of 100% renewable, on households’ behavior using a large-scale dataset, with a quasi-experimental setting. The analysis, indeed, combines micro-level data from the German Socio-Economic Panel (SOEP) with information on the Landkreis (districts) that took part in a regional energy project aimed at supporting regions to achieve 100% neutrality of energy production: Project 100% Erneuerbare-Energie-Regionen (100ee-Region). The findings show that German households living in these districts have considerably increased their energy consumption through the years with respect to untreated households. Moreover, results report that the adoption of renewable energies mediates the effect of the treatment on energy usage, outlining a concave parabolic relationship between the mediator and the outcome. These findings, based on real-world evidence, provide powerful information that should be considered by policymakers when promoting the decentralization of energy. Moreover, this study fits into the literature on the determinants of pro-environmental behavior, showing that contextual factors are crucial drivers of it. |
| Keywords: | Decentralized energy, energy behavior, rebound effects, Germany, policy evaluation |
| JEL: | C22 D19 Q40 Q48 Q28 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2055&r=ene |
| By: | KANEMOTO Yoshitsugu |
| Abstract: | Designing power markets is not easy because power systems have a number of troublesome technical characteristics that can lead to market failure. Perhaps least well known but most intellectually challenging among them are the nonconvexities introduced by generator start-up costs and minimum output constraints. With these nonconvexities a competitive equilibrium may fail to exist, which makes the task of designing electricity markets highly challenging. In Japan as well as other developed countries, the problem of start-up costs is becoming more serious, and the redesign of the electricity market is being considered. This paper reviews two approaches to dealing with nonconvexity in power generation, one European and one U.S. ISO approach. It also discusses the recent developments in pricing under nonconvexity and how to deal with the large forecast errors that have arisen with the rapid increases in variable renewable energy. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:eti:rdpsjp:23048&r=ene |
| By: | GARCIA-GUTIERREZ Pelayo (European Commission - JRC); KLENERT David; MARSCHINSKI Robert (European Commission - JRC); TONINI Davide (European Commission - JRC); SAVEYN Hans (European Commission - JRC) |
| Abstract: | The first part of this study applies life cycle analysis and life cycle costing methods to assess the impacts of eight alternative scenarios (pathways) for the management of 1 tonne of waste oil with certain physico-chemical properties, including three regeneration pathways (hydro-treatment, solvent extraction and distillation) and five energy recovery pathways (two types of distillation into fuel oil, direct incineration in cement kilns, direct incineration in hazardous waste incinerators and direct incineration in industrial boilers). Whereas regeneration outperforms all energy recovery pathways from a climate change perspective, the results are more nuanced when considering the societal life cycle costs, i.e. the sum of internal and external costs (monetised environmental emissions). In the second part of this study, we analyse different policies to achieve higher regeneration rates in terms of their environmental and socio-economic impacts. In particular, we quantify the impacts of a 70% and an 85% regeneration target at EU level. Both targets indicate rather minor benefits. The 70% target leads to 0.6 Mt total CO2-equivalent savings and 124 million € net savings in terms of societal costs over the period 2024-2045. For the 85% target, CO2-equivalent savings amount to 1.7 Mt, net savings in terms of societal costs to 330 million € (both over the period 2024-2045) and net employment creation to 329 jobs by 2045. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc133752&r=ene |
| By: | Masako Ikefuji; Yoshiyasu Ono |
| Abstract: | Global warming is a serious and acute threat to our planet, but, when negotiating the allocation of permissible carbon emissions, conflicts of interest exist between developed and developing countries. Developing countries insist that global warming is the result of prolonged pollution emissions by developed countries, while developed countries demand that developing countries make efforts comparable to their own to reduce carbon emissions. They both generally believe that stricter emission limits will burden their economies because of the extra abatement costs required. We use a two-country model with wealth preferences and find that the effects of a country’s emission limit on the two countries’ real consumption and pollution emissions differ, depending on the combination of their business situations. If both countries achieve full employment, one country’s stricter emission limit decreases both countries’ real consumption, as expected. However, if one country faces aggregate demand stagnation and the other achieves full employment, a stricter emission limit imposed by the stagnant country increases both countries’ real consumption. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1222&r=ene |
| By: | Wolf-Peter Schill; Alexander Roth; Adeline Guéret; Felix Schmidt |
| Abstract: | The German traffic light coalition began its term two years ago with ambitious energy policy goals. Halfway through the legislative period, its track record is mixed. Good progress has been made in some areas, but in others a large gap between targets and the status quo remains. The Ampel-Monitor Energiewende by the German Institute for Economic Research (DIW Berlin) shows where we stand today in terms of key technologies for the transition to climate neutrality. This brief study first provides an overview of various indicators, followed by a detailed look at the dynamics of individual developments. While Germany is making good progress with photovoltaics, for example, the expansion of onshore wind power is currently well below the target path. Progress in electromobility is also clearly too slow. Overall, the pace of the energy transition must be significantly increased to meet Germany's climate protection commitments. How-ever, if the government increases its efforts and acts consistently, the targets can still be achieved. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwfoc:10en&r=ene |
| By: | Rakas, Jasenka PhD; Achatz Antonelli, Pietro; Walia, Chanan; Rouzbahani, Parham; Gikas, George |
| Abstract: | The use of airport gate electrification infrastructure in the form of ground power (GP) and preconditioned air (PCA) systems can reduce energy and maintenance costs, emissions, and health risks by limiting the use of aircraft auxiliary power unit (APU) engines at the gate. However, their benefits can only be gained when they are actually being used; otherwise, pilots keep APUs on to fulfill their aircraft’s demands for electrical power and air conditioning. GP and PCA systems require a large initial infrastructure investment to increase energy efficiency, and they are installed with the assumption that they will be highly utilized. In this report, a method is developed to examine how much and why GP and PCA are not used to their full potential when they are readily available. |
| Keywords: | Engineering |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt71q5d7x3&r=ene |
| By: | Bhatta, Bibek |
| Abstract: | This study examines whether the current discourses and debates at international level are aligned with Sustainable Development Goal (SDG) 7 for i) affordable energy and ii) clean energy. Guided by the overarching vision of SDG7, this study assumes that both "affordably energy" and "clean energy" are of equal importance and examines their prevalence along two dimensions: parliamentary debates and news cycle. Results suggest that "clean energy" is used significantly more compared to "affordable energy" in both parliamentary debates and newspapers in the UK, US and Ireland. This is the first study that we are aware of that examines the possible incongruity between international discourses and SDG7. It also adds to the emerging debate on whether affordable energy and clean energy are of equal importance or whether one is superior to the other. It also points towards the need for a macroeconomic evaluation and cost consideration when it comes to creation of 'green jobs'. Finally, given that this incongruity is most severe in the US congress, this study also points to geopolitical implications for other countries. |
| Keywords: | SDG7, clean energy, affordable energy, green jobs, sustainable development |
| JEL: | Q40 Q42 Q43 Q48 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qmsrps:202308&r=ene |
| By: | Miriam Fritzsche; Nikolaus Wolf |
| Abstract: | Fossil fuels have shaped the European economy since the industrial revolution. We use new long-run panel data to analyse the effect of both, coal and oil on economic growth between 1900 and 2015, exploiting variation at the level of European NUTS2 and NUTS3 regions. We show that the reversal of fortune of coal regions resulted from the second energy transition. Specifically, an “oil invasion” in the early 1960s turned regional coal abundance from a blessing into a curse. Human capital accumulation contributed to this reversal of fortune and fully explains the negative effects until today. Moreover, we find substantial heterogeneity between former coal regions that is in line with Glaeser’s “reinvention hypothesis”: regions with a higher skill-level adjusted much better to the decline of coal. In particular, we show that coal regions with a higher urban density before 1800 were much more resilient than others. |
| Keywords: | coal, oil invasion, second energy transition, education, reinvention, growth |
| JEL: | O13 O44 Q32 N14 R10 I25 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10805&r=ene |
| By: | Navajas Fernando |
| Abstract: | This paper reviews some critical issues for addressing the structure of electricity tariffs for ulterior purposes of policy research agenda. Starting from economic principles behind electricity tariff design, this paper asks what options ahead Latin America has in terms of improving electricity tariff design from a heterogeneous status quo, where trade-offs among cost recovery, cost reflectivity and affordability stand out. Options look like an avenue for improving cost recovery through better wholesale market design and regulation; move outside excess volumetric pricing and towards fixed and capacity charges; reduce excessive increasing block pricing; promote metering and regulatory flexibility for menu pricing with optional schemes and guaranteed bills; foster flexibility for new customer clustering and pricing to accommodate innovation in the energy transition; attend affordability with lump sum transfers through differentiated fixed charges and taxes and reform taxation to coordinate tariff format reform across different regulatory jurisdictions. Above all these dimensions, countries should coordinate on common information standards on the level and structure of electricity rates. |
| JEL: | L51 L94 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4676&r=ene |
| By: | Omar Al-Ubaydli; Alecia W. Cassidy; Anomitro Chatterjee; Ahmed Khalifa; Michael K. Price |
| Abstract: | High resource users often have the strongest response to behavioral interventions promoting conservation. Yet, litlle is known about how to motivate them. We implement a field experiment in Qatar, where residential customers have some of the highest energy use per capita in the world. Our dataset consists of 207, 325 monthly electricity meter readings from a panel of 6, 096 customers. We employ two normative treatments priming identity - a religious message quoting the Qur’an, and a national message reminding households that Qatar prioritizes energy conservation. The treatments reduce electricity use by 3.8% and both messages are equally effective. Using machine learning methods on supplemental survey data, we elucidate how agency, motivation, and responsibility activate conservation responses to our identity primes. |
| JEL: | C93 D90 Q4 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31931&r=ene |
| By: | David Kr\"oger; Jan Peper; Nils Offermann; Christian Rehtanz |
| Abstract: | Offshore wind power in the North Sea is considered a main pillar in Europe's future energy system. A key challenge lies in determining the optimal spatial capacity allocation of offshore wind parks in combination with the dimensioning and layout of the connecting high-voltage direct current grid infrastructure. To determine economically cost optimal configurations, we apply an integrated capacity and transmission expansion problem within a pan-European electricity market and transmission grid model with a high spatial and temporal granularity. By conducting scenario analysis for the year 2030 with a gradually increasing CO2 price, possible offshore expansion paths are derived and presented. Special emphasis is laid on the effects of weather uncertainty by incorporating data from 21 historical weather years in the analysis. Two key findings are (i) an expansion in addition to the existing offshore wind capacity of 0 GW (136 EUR/tCO2), 12 GW (159 EUR/tCO2) and 30 GW (186 EUR/tCO2) dependent on the underlying CO2 price. (ii) A strong sensitivity of the results towards the underlying weather data highlighting the importance of incorporating multiple weather years. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.17981&r=ene |
| By: | Ferretti, I.; Glock, C. H.; Zanoni, S. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:141891&r=ene |
| By: | Bergquist, Ann-Kristin (Department of Economic History, Uppsala University); Lindmark, Magnus (Unit of Economic History, Umeå University) |
| Abstract: | The climate crisis is at the core of attention to the need for an energy transition at a scale resembling a new ‘low carbon’ industrial revolution. As energy transitions are relatively exceptional and prolonged processes, social scientists have increasingly turned their attention to historical experiences for lessons about how they might unfold in the future. Against this backdrop, the paper examines how the present political economy and barriers for energy transitions compare with past energy transitions. The paper argues that formidable challenges posed by existing energy regimes. Established over centuries and having played a foundational role in the development of modern capitalism since the Industrial Revolution, these 'incumbent' regimes or ‘historical blocks’ are not easily displaced. It urges economic historians to move beyond its traditional focus on how energy via technological change has created new economic growth opportunities and look more into the barriers for energy transition embedded in the architecture of the political economy. |
| Keywords: | Energy transitions; economic history; business history; political economy |
| JEL: | N50 N70 Q40 Q50 |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uuehwp:2023_011&r=ene |
| By: | Miriam Fritzsche (HU Berlin); Nikolaus Wolf (HU Berlin) |
| Abstract: | Fossil fuels have shaped the European economy since the industrial revolution. We use new long-run panel data to analyse the effect of both, coal and oil on economic growth between 1900 and 2015, exploiting variation at the level of European NUTS2 and NUTS3 regions. We show that the reversal of fortune of coal regions resulted from the second energy transition. Specifically, an “oil invasion” in the early 1960s turned regional coal abundance from a blessing into a curse. Human capital accumulation contributed to this reversal of fortune and fully explains the negative effects until today. Moreover, we find substantial heterogeneity between former coal regions that is in line with Glaeser’s “reinvention hypothesis”: regions with a higher skill-level adjusted much better to the decline of coal. In particular, we show that coal regions with a higher urban density before 1800 were much more resilient than others. |
| Keywords: | coal; oil invasion; second energy transition; education; reinvention; growth; |
| JEL: | O13 O44 Q32 N14 R10 I25 |
| Date: | 2023–11–25 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:465&r=ene |
| By: | Carl Grekou (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Emmanuel Hache (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, IRIS - Institut de Relations Internationales et Stratégiques); Frédéric Lantz (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School); Olivier Massol (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IFP School, LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay, CentraleSupélec); Valérie Mignon (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Lionel Ragot (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique) |
| Abstract: | The war in Ukraine is shaking up the European energy scene and its dependence on Russia. This article analyzes the stakes and challenges for Europe of the Russian-Ukrainian conflict on the gas market. It first highlights the evolution and extent of the dependence of European economies on Russian gas and discusses the economic impacts that have been evident since the beginning of the hostilities. It then describes the various responses implemented in Europe to emancipate itself from this dependence. Finally, it discusses some of the blind spots in European decisions and outlines various ways to overcome them. |
| Abstract: | La guerre en Ukraine bouleverse la scène énergétique européenne et sa relation de dépendance à la Russie. Cet article analyse les enjeux et les défis, pour l'Europe, du conflit russo-ukrainien sur le marché gazier. Il met d'abord en évidence l'évolution et l'ampleur de la dépendance des économies européennes au gaz russe et en discute les impacts économiques qui se sont manifestés dès le début des hostilités. Il décrit ensuite les différentes réponses mises en œuvre en Europe pour s'émanciper de cette dépendance. Enfin, il discute quelques angles morts des décisions européennes et esquisse diverses pistes pour les dépasser. |
| Keywords: | Russo-Ukrainian War, Natural Gas Markets, Energy security, Guerre en Ukraine, Dépendance énergétique, Gaz naturel, Europe, Russie |
| Date: | 2022–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03955439&r=ene |
| By: | Filippo Maria D’Arcangelo; Tobias Kruse; Mauro Pisu |
| Abstract: | This paper identifies different types of climate change mitigation strategies countries adopted over the last two decades and assesses the policy synergies they might generate. The analysis exploits the rich policy repository of the OECD’s Climate Actions and Policies Measurement Framework (CAPMF). This is the most comprehensive and harmonised mitigation policy database to date, covering more than 120 policy instruments and 50 countries over 2000-20. Statistical cluster analysis yields four types of mitigation strategies, which differ in the variety and stringency of mitigation policies. Until the mid-2000s mitigation strategies were similar and based on few policies and low overall stringency. They started to differentiate in the mid-2000s and then in the mid-2010s as some countries enlarged the variety of policy instruments and raised stringency. Regression results indicate that emissions are negatively associated with the overall stringency of the country’s mitigation strategies. Moreover, this relationship is stronger for mitigation strategies comprising a larger set of instruments, pointing to larger policy synergies. |
| Keywords: | Climate policy, cluster analysis, cross-country analysis, greenhouse gas emissions |
| JEL: | Q54 Q58 C23 |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1786-en&r=ene |
| By: | Dimnwobi, Stephen; Madichie, Chekwube; Ekesiobi, Chukwunonso; Asongu, Simplice A |
| Abstract: | Financial sector performance is increasingly linked with the transition to renewable energy in the sustainability discourse of developing economies. This paper examines the nexus and implication (s) of financial development on renewable energy consumption in Nigeria (the largest and most populous economy in Africa). Specifically, this study utilised the broad based financial development index data to effectively address the multidimensional nature of financial development and the portion of renewable energy in total energy consumption as key variables, while other relevant pieces of information (growth rate of per capita GDP, foreign direct investment and consumer price index) were incorporated. The study employed a blend of the ADF test and Zivot-Andrew test to ascertain stationarity properties as well as the likelihood of structural breaks, while the ARDL was utilized to determine the long-run relationship(s) using data from 1981 to 2019. The study estimation finds, among other things, that financial development is critical for renewable energy consumption in Nigeria and recommends policies to promote better outcomes for the financial and energy sectors, respectively. |
| Keywords: | Financial development; Renewable energy consumption; Nigeria |
| JEL: | O1 O13 |
| Date: | 2022–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119312&r=ene |
| By: | Patrick Gruning (Latvijas Banka); Zeynep Kantur (Baskent University) |
| Abstract: | The most effective approach to tackling climate change is by decarbonising produc- tion processes. However, decarbonisation might render assets stranded, impacting not only the relevant sector but also causing a ripple effect across all sectors, thereby potentially destabilising macroeconomic stability. We develop a multi-sector New Keynesian model with two physical capital types (brown and green) and input- output linkages to examine the economic impact of sector-specific capital stranding. Stranded brown capital in the brown sector yields a relocation of economic ac- tivities to the green sector and thus environmental benefits with small aggregate consequences, while brown capital stranding in both sectors implies larger economic costs and smaller environmental benefits. Brown consumption taxes and green pro- ductivity shocks facilitate the green transition, while brown investment taxes or green investment subsidies turn out to be less favourable policies in this respect. However, a combination of these two investment policies yields favourable economic and environmental outcomes. Doubling the carbon tax in the brown sector yields significant relocation activities at relatively small economic costs. If the central bank responds strongly to short-run inflationary pressures of carbon tax increases, this leads to larger output losses in the short run and higher output gains in the long run. |
| Keywords: | capital utilization, stranded assets, production network, climate change, fiscal policy, monetary policy |
| JEL: | E22 E32 E52 E61 L14 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:wpaper:202306&r=ene |
| By: | Yue Sun (Center for Policy Research, Maxwell School, Syracuse University, 426 Eggers Hall, Syracuse, NY 13244) |
| Abstract: | Cardiovascular disease (CVD) is the leading cause of death in the United States, but there are large disparities in CVD death rates across the country. Air pollution also plays an important role in shaping geographic disparities in CVD mortality, as air pollutants can become absorbed in human circulation systems, and cause inflammation, damage nervous systems, and trigger poor CVD outcomes. This brief reports the results of a study that used data on air pollution and from death certificates to estimate the association between fine particulate matter and cardiovascular disease mortality rates in the U.S. in 2016-2018. Results show that cutting air pollution to match the World Health Organization’s proposed standards could have prevented over 300, 000 CVD deaths in the U.S. over this period. |
| Keywords: | Pollution, Cardiovascular Disease |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:max:cprpbr:66&r=ene |
| By: | Ying Li; Lei Li; Zhi Su; Libo Yin |
| Abstract: | This paper studies the propagation of environmental regulation along the supply chain and quantifies its welfare implications. By incorporating input-output linkages into the workhorse tax incidence model, we derive statistically sufficient representations of the incidence under a general imperfect competition framework. In the context of China’s SO2 emission regulation, we show that emission fees affect manufacturing producers through two channels. First, manufacturing producers bear the full brunt of emissions fees imposed directly on them. Second, emission fees imposed on their upstream suppliers translate into higher input costs faced by manufacturing producers, who bear 29% of the burden. Neglecting the role of the latter would result in an underestimation of 5%–13% of the cost burden for most industries. |
| Keywords: | Input-Output-Linkage, Emission Fees, Incidence, Pass-Through |
| JEL: | H22 H23 Q52 D57 L60 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2023_483&r=ene |
| By: | Christian Krekel; Johannes Rode; Alexander Roth |
| Abstract: | While wind power is considered key in the transition towards net zero, there are concerns about adverse health impacts on nearby residents. Based on precise geographical coordinates, we link a representative longitudinal household panel to all wind turbines in Germany and exploit their staggered rollout over two decades for identification. We do not find evidence of negative effects on general, mental, or physical health in the 12-Item Short Form Survey (SF-12), nor on self-assessed health or doctor visits. We also do not find evidence for effects on suicides, an extreme measure of negative mental health outcomes, at the county level. |
| Keywords: | wind turbines, externalities, health, renewable energy, difference-in-differences, event study |
| JEL: | D62 I10 Q20 Q42 R10 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwsop:diw_sp1197&r=ene |
| By: | Daniel Bartusek (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic); Evzen Kocenda (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic; CESifo, Munich, Germany; IOS, Regensburg, Germany) |
| Abstract: | Prices of oil-based commodities are often heavily influenced by the occurrence of various events covered in the news. We analyze over 900 events related to oil from 1978 to 2022 and group them based on a set of repeating characteristics. We quantify dynamic connectedness among energy commodities and use a novel bootstrap-after-bootstrap testing econometric framework to identify over 20 statistically significant historical events that triggered a sudden and lasting rise in volatility connectedness. We show that geopolitical events are linked with increases in connectedness much more often than economic events. Natural events do not exhibit a similar impact, though. The Majority of the events after which volatility connectedness increased share three common characteristics: they are negative, unexpected, and introduce fear of oil supply shortage. |
| Keywords: | energy commodities; crude oil; volatility connectedness; systemic events; bootstrapafter-bootstrap procedure |
| JEL: | C32 C58 G15 Q02 Q35 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2023_35&r=ene |
| By: | Jules Linden; Cathal O’Donoghue; Denisa M. Sologon |
| Abstract: | This paper decomposes and compares the distributional impact of uniform national carbon taxes across six EU countries. We quantify the contribution of the key determinants of the carbon tax burden to its impact on inequality and regressivity indicators. We identify large cross-country differences in carbon tax burdens, their composition, and the drivers of the within-country distributional impact. A carbon tax is regressive in all countries, but carbon tax burdens and their impact on income inequality are larger in poorer countries of our sample. Cross-country differences in the primary driver of carbon tax regressivity suggest that the most effective policy lever to mitigate carbon tax regressivity differs across countries. Differences in the composition of the consumption basket play an important role in most countries, but not all. Differences in savings rates play the most important role in the wealthier countries of our sample. The carbon intensity of consumption plays a larger role in the poorer countries of our sample. Overall, this article suggests that differences in the structure of carbon tax incidence and the drivers of its distributional impact across countries pose a challenge to cross-country policy learning, and highlights the need for in-depth country-level and comparative analysis. |
| Keywords: | Distributional effect; Carbon pricing; Energy; Decomposition; Income inequality; Carbon Intensity |
| JEL: | D12 D31 H22 H23 Q48 Q50 Q52 Q58 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:irs:cepswp:2023-10&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 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2056&r=ene |
| By: | Ryan Kellogg; Richard L. Sweeney |
| Abstract: | We study how the Jones Act — a 100-year-old U.S. regulation that constrains domestic waterborne shipping — affects U.S. markets for crude oil and petroleum products. We collect data on U.S. Gulf Coast and East Coast fuel prices, movements, and consumption, and we estimate domestic non-Jones shipping costs using freight rates for Gulf Coast exports. We then model counterfactual prices and product movements absent the Jones Act, allowing shippers to arbitrage price differences between the Gulf and East Coasts when they exceed transport costs. Eliminating the Jones Act would have reduced average East Coast gasoline, jet fuel, and diesel prices by $0.63, $0.80, and $0.82 per barrel, respectively, during 2018–2019, with the largest price decreases occurring in the Lower Atlantic. The Gulf Coast gasoline price would increase by $0.30 per barrel. U.S. consumers’ surplus would increase by $769 million per year, and producers’ surplus would decrease by $367 million per year. |
| JEL: | F13 K33 L72 Q37 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31938&r=ene |
| By: | Robert Stewart (University of Toronto) |
| Abstract: | This paper discusses property assessed clean energy (PACE) financing as an arrangement to support building decarbonization efforts in Canadian cities. PACE financing allows building owners to acquire debt financing for energy efficiency upgrades to their property, secured through a property tax lien on the building, and the debt is repaid through the property tax. The debt is bonded to the property and not the owner, and the property tax lien provides a collateralization feature that may support more favourable borrowing terms. This paper outlines and examines the three general approaches used to deliver PACE financing: government administered and financed; privately administered but government financed; and privately administered and financed. It further makes a recommendation for privately administered and financed programs to support the scaling up of PACE financing in Canada. Privately administered and financed programs can bring significant private capital to PACE programs while also reducing the public administrative burdens associated with program delivery. This paper then presents sustainability-linked debt as a funding tool to attract private capital to PACE programs. Sustainability-linked debt is debt that is linked to sustainability performance outcomes. The paper details the characteristics of sustainability-linked bonds (SLBs) and discusses how they could be used to attract impact investors by linking the greenhouse gas (GHG) emissions reductions from buildings to the return (coupon) rate of the SLBs. SLBs could be used by private PACE program providers to raise capital or by local government administered programs to acquire private capital to support PACE financing. In the latter case, the paper suggests that municipalities establish special purpose entities dedicated to PACE financing and capitalize these entities through SLB issuances. |
| Keywords: | property assessed clean energy financing; PACE financing; sustainabilitylinked bonds; SLBs; building decarbonization; energy performance contracting; EPC; guaranteed savings; shared savings |
| JEL: | O10 Q01 Q50 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:mfg:wpaper:65&r=ene |
| By: | Catherine Locatelli (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Mehdi Abbas (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes) |
| Abstract: | What are the effects of the intensification of energy interdependence between Russia, the world's second largest exporter of hydrocarbons, and China, the world's largest importer? Bilateral interdependence is the lever for the hybridization of the institutions governing international energy relations. Based on the issues of power and energy security, the intensification of interdependence leads to institutional changes, known as hybridisation, which are linked to a specific security-efficiency trade-off. Four factors shape this hybridisation: the structural context faced by the actors, the strategic behaviour of the state-firm complex, sectoral properties and existing institutional arrangements. |
| Abstract: | Quels sont les effets de l'intensification de l'interdépendance énergétique entre la Russie, deuxième exportateur mondial d'hydrocarbures, et la Chine, premier importateur mondial ? L'interdépendance bilatérale serait le levier de l'hybridation des institutions d'encadrement des relations énergétiques internationales. Centrée sur des enjeux de puissance et de sécurité énergétique, l'intensification de l'interdépendance s'accompagne de changements institutionnels, qualifiés d'hybridation, fondés sur un arbitrage sécurité-efficience spécifique. Quatre facteurs paramètrent cette hybridation : le contexte structurel auquel font face les acteurs, le comportement stratégique du complexe Etat-Entreprises, les propriétés sectorielles et les arrangements institutionnels existants. |
| Keywords: | Hybridization, Energy interdependence, Energy security, Hybridation, Interdépendance énergétique, Sécurité énergétique |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04297005&r=ene |
| By: | Khezr, Peyman; Pourkhanali, Armin |
| Abstract: | The Regional Greenhouse Gas Initiative (RGGI), as the largest cap-and-trade system in the United States, employs quarterly auctions to distribute emissions permits to firms. This study examines firm behavior and auction performance from both theoretical and empirical perspectives. We utilize auction theory to offer theoretical insights regarding the optimal bidding behavior of firms participating in these auctions. Subsequently, we analyze data from the past 58 RGGI auctions to assess the relevant parameters, employing panel random effects and machine learning models. Our findings indicate that most significant policy changes within RGGI, such as the Cost Containment Reserve, positively impacted the auction clearing price. Furthermore, we identify critical parameters, including the number of bidders and the extent of their demand in the auction, demonstrating their influence on the auction clearing price. This paper presents valuable policy insights for all cap-and-trade systems that allocate permits through auctions, as we employ data from an established market to substantiate the efficacy of policies and the importance of specific parameters. |
| Keywords: | Emissions permit, auctions, uniform-price, RGGI |
| JEL: | C5 D21 Q5 |
| Date: | 2023–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119289&r=ene |
| By: | Benedict Clements (Universidad de las Américas); Sanjeev Gupta (Center for Global Development); João Jalles (University of Lisbon-Lisbon School of Economics and Management (ISEG)); Bernat Adrogue (Center for Global Development) |
| Abstract: | Climate change is a systemic risk to the global economy. While there is a large body of literature documenting the potential economic consequences of climate change, there is relatively little research on the link between vulnerabilities to climate change, the buildup of climate debt by countries with historically large carbon dioxide emissions, and how well financial markets incorporate (or not) these risks to sovereign governments. This paper investigates the impact of both climate debt and climate vulnerabiities/resiliency on sovereign bond yields and spreads in advanced and emerging market economies, using a novel dataset. We find that changes in climate debt are an important determinant of spreads, but only in emerging market economies. Countries with high vulnerabilities and low resilency to climate change also pay higher spreads. This implies a triple whammy of challenges for emerging market economies as they confront the economic damages of climate change, the high fiscal costs of climate adaptation, and high borrowing costs. |
| Keywords: | climate change vulnerability; government bond spreads; sovereign risk; panel data; social cost of carbon |
| JEL: | C23 E21 H5 H63 H74 Q54 |
| Date: | 2023–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:wpaper:660&r=ene |
| By: | Marie Girod (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay, RTE - Réseau de Transport d'Electricité [Paris]); Efthymios Karangelos (Institut Montefiore - Department of Electrical Engineering and Computer Science - Université de Liège); Emily Little (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay, RTE - Réseau de Transport d'Electricité [Paris]); Viktor Terrier (RTE - Réseau de Transport d'Electricité [Paris]); Jean-Yves Bourmaud (RTE - Réseau de Transport d'Electricité [Paris]); Virginie Dussartre (RTE - Réseau de Transport d'Electricité [Paris]); Oualid Jouini (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay); Yannick Perez (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Keywords: | Balancing, congestion management, cross-border capacity, flow-based, market integration |
| Date: | 2022–09–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03894205&r=ene |
| By: | David Molitor (University of Illinois and NBER); Corey White (Monash University and IZA) |
| Abstract: | Do environmental conditions pose greater health risks to individuals living in urban or rural areas? The answer is theoretically ambiguous: while urban areas have traditionally been associated with heightened exposure to environmental pollutants, the economies of scale and density inherent to urban environments offer unique opportunities for mitigating or adapting to these harmful exposures. To make progress on this question, we focus on the United States and consider how exposures—to air pollution, drinking water pollution, and extreme temperatures—and the response to those exposures differ across urban and rural settings. While prior studies have addressed some aspects of these issues, substantial gaps in knowledge remain, in large part due to historical deficiencies in monitoring and reporting, especially in rural areas. As a step toward closing these gaps, we present new evidence on urban-rural differences in air quality and population sensitivity to air pollution, leveraging recent advances in remote sensing measurement and machine learning. We find that the urban-rural gap in fine particulate matter (PM2.5) has converged over the last two decades and the remaining gap is small relative to the overall declines. Furthermore, we find that residents of urban counties are, on average, less vulnerable to the mortality effects of PM2.5 exposure. We also discuss promising areas for future research. |
| Keywords: | environment, urban, rural, pollution, health |
| JEL: | I10 Q53 Q54 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2023-25&r=ene |
| By: | Isabella Neuweg (OECD); Nelly Petkova (OECD); Krzysztof Michalak (OECD); Yuliia Oharenko |
| Abstract: | The paper analyses the current system of environmental taxation and environmental expenditure in Ukraine, identifies issues in the way environmental tax policy is currently designed and implemented and highlights main areas where environmental taxation and expenditure could be improved. It uses data on environmental tax revenue and budgets from expenditure reports of the State Treasury Service of Ukraine over the period 2010 - 2020. Where available, preliminary data for 2021 were also included. The paper aims to support the government of Ukraine in reforming environmental taxation and public funding for environmental protection. Ukraine’s Post-War Recovery and Reconstruction Plan outlines ambitious plans for reform, including in the environmental domain. It envisions restructuring the current environmental tax system, expanding it to energy and transport and harmonising it with that of the European Union. It also foresees an analytical study systematising current taxes and payments in line with Eurostat classification standards. This paper can support these efforts. |
| JEL: | H23 H61 H71 Q54 Q58 |
| Date: | 2023–12–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:231-en&r=ene |
| By: | Nobuhiro Abe (Bank of Japan); Yusuke Kawasumi (Bank of Japan); Yutaro Takano (Bank of Japan); Tomomi Naka (Bank of Japan); Naohisa Hirakata (Bank of Japan); Kohei Matsumura (Bank of England); Ko Munakata (Bank of Japan) |
| Abstract: | The use of scenario analysis for climate-related financial risks is progressing in various jurisdictions. In this paper, we conduct a top-down scenario analysis of transition risk for Japanese banks. We analyze a short-term (5-year) scenario, while long-term scenarios of about 30 years are often used in climate-related scenario analysis. In our analysis, we examine two cases regarding the extent to which firms adjust smoothly to carbon price increases: a smooth adjustment case and a slow adjustment case. In addition, we use a multi-sector dynamic general equilibrium model to account for inter-industry spillovers. There are two main findings of this paper. First, we find that the degree of firms' adjustment leads to substantial differences in credit cost ratios of banks. This suggests the importance of accounting for the degree of adjustment to carbon price increases. Second, we find that the carbon price increase not only has an impact on the directly affected key sectors, but also spreads indirectly to other sectors through inter-industry linkages, resulting in an increase in the credit cost ratio. This suggests that even regional banks with relatively small exposure to key sectors need to pay close attention to the transition risk. |
| Keywords: | Banks' stability; Macro stress test; Climate change; Transition risks; Carbon tax |
| JEL: | E10 E17 E44 E47 E65 F20 G10 G21 G28 G38 Q54 |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:boj:bojron:ron231221a&r=ene |
| By: | Sousa, Ricardo (University of Minho); Kyophilavong, Phouphet (National University of Laos); Abdullah-Al-Baki, Chowdhury (Linköping University); Uddin, Gazi Salah (Linköping University); Park, Donghyun (Asian Development Bank) |
| Abstract: | We investigate the impact of electrification on the economic, educational, and environmental outcomes of the Lao People’s Democratic Republic (Lao PDR). We use household-level data and a novel identification scheme, whereby we instrument the electrification status with the proportion of grid-connected households in a community. We find evidence consistent with the so-called “peer pressure for technology adoption, ” as a higher proportion of electrified households is linked with a boost in the electrification of neighboring households. Additionally, we find that electrification: (i) significantly increases income (in particular, farm income); (ii) improves children's educational completion; and (iii) reduces the use of dirty fuel for lighting and cooking. From a policy perspective, public investments and financial incentives for electricity generation and distribution can play a key role in alleviating the existing economic, educational, and environmental bottlenecks of developing countries like the Lao PDR. |
| Keywords: | electrification; household; fuel; income; education; Lao People’s Democratic Republic |
| JEL: | Q40 Q49 |
| Date: | 2023–12–04 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0705&r=ene |
| By: | Joshua Aizenman; Robert Lindahl; David Stenvall; Gazi Salah Uddin |
| Abstract: | We investigate the event-based geopolitical shocks from the Russian invasion of Ukraine on selected agricultural and energy commodities using daily event-based structural vector autoregression (SVAR). We find that the geopolitical shock affects the markets of wheat (3%) and European natural gas (12%). However, substantial heterogeneity is observed among the food and energy markets. Geopolitical risk affects the European natural gas market more strongly than the US and Asian markets. The regional segment of natural gas markets could explain this. Finally, the dynamics of the impacts of geopolitical news are analyzed in the stock, currency, and bond markets. |
| JEL: | F30 F50 G10 G14 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31950&r=ene |
| By: | Christophe Midler (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique, Académie des Technologies); Marc Alochet (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | In China, Europe and the United States, the transition from thermal to battery electric vehicles is ongoing under the effect of technology forcing regulations. We investigate whether and how those related to high voltage batteries could shape the future of the automotive industry. Wile China is leading the way, Europe and the United States, with very high levels of funding, are racing against time to catch up and develop a sustainable battery value chain controlled by local champions. As the U.S. resorts to protectionism, we hypothesize that we may see the emergence of three geographic production hubs, ending the globalization of the battery industry. |
| Keywords: | High voltage battery, zero emission vehicle, regulation, China, Europe, United States, Battery manufacturing, battery supply chain, localization |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04303575&r=ene |
| By: | Patire, Anthony D. PhD; Dion, Francois PhD; Bayen, Alexandre M. PhD |
| Abstract: | Connected and automated vehicles (CAVs) willrevolutionize the way we travel; however, what impact this revolution will have on advancing broader societal goals is uncertain. To date, the private sector technology rollout has emphasized the automation side of CAVs and neglected the potentially transformative possibilities brought by a more collaborative notion of connectivity. This may have significant downsides from a broader societal perspective. For example, CAVs (including those on the road today) collect a vast amount of data gathered through onboard systems (e.g., radar, lidar, camera), however, this data is not typically shared with other vehicles, roadside infrastructure, or public transportation agencies. This lack of collaboration will likely make traffic worse and forfeit the opportunity to manage traffic at the systems-level, which is where significant gains can be made in terms of improving traffic flow and safety, reducing greenhouse gas emissions and vehicle energy use, and more. |
| Keywords: | Engineering |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsrrp:qt7vm0d838&r=ene |
| By: | Jongrim Ha; M. Ayhan Kose; Franziska Ohnsorge; Hakan Yilmazkuday |
| Abstract: | This paper examines the drivers of fluctuations in global inflation, defined as a common factor across monthly headline consumer price index (CPI) inflation in G7 countries, over the past half-century. We estimate a Factor-Augmented Vector Autoregression model where a wide range of shocks, including global demand, supply, oil price, and interest rate shocks, are identified through narrative sign restrictions motivated by the predictions of a simple dynamic general equilibrium model. We report three main results. First, oil price shocks followed by global demand shocks explained the lion’s share of variation in global inflation. Second, the contribution of global demand and oil price shocks increased over time, from 56 percent during 1970-1985 to 65 percent during 2001-2022, whereas the importance of global supply shocks declined. Since the pandemic, global demand and oil price shocks have accounted for most of the variation in global inflation. Finally, oil price shocks played a much smaller role in global core CPI inflation variation, for which global supply shocks were the main source of variation. These results are robust to various sensitivity exercises, including alternative definitions of global variables, different samples of countries, and additional narrative restrictions. |
| Keywords: | oil prices, demand shocks, supply shocks, interest rate shocks |
| JEL: | E31 E32 Q43 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2023-66&r=ene |
| By: | Geden, Oliver; Knopf, Brigitte; Schenuit, Felix |
| Abstract: | Nach dem Abschluss des Fit for 55-Pakets wird die Klimapolitik der Europäischen Union (EU) in ihre nächste Phase eintreten. Eine der wichtigsten Entscheidungen wird sein, das übergreifende Emissionsreduktionsziel für 2040 festzulegen, das den Ausgangspunkt für die nächste Runde der Überarbeitung aller klimapolitischen Rechtsvorschriften der EU bilden wird. Das Europäische Klimagesetz sieht vor, dass die Europäische Kommission ein Ziel für 2040 vorschlägt, das unter anderem auf einem "projizierte[n] indikative[n] Treibhausgasbudget der Union für den Zeitraum von 2030 bis 2050" basiert. Dieses Budget wiederum stützt sich auf einen Bericht des mit dem EU-Klimagesetz neu geschaffenen Europäischen wissenschaftlichen Beirats zum Klimawandel. Das Kumulieren von Emissionen, die sich aus verschiedenen Minderungsszenarien ergeben, kann bei der Bewertung der jeweiligen Ambitionsniveaus helfen; dagegen birgt die strikte Ableitung eines EU-Emissionsbudgets aus dem globalen CO2-Budget mehrere Fallstricke. Die Debatte über die Gestaltung der EU-Klimapolitik nach 2030 sollte sich indes nicht zu sehr auf ein "wissenschaftlich angemessenes" Niveau des Ziels für 2040 konzentrieren, sondern darauf, wie die Governance-Architektur weiterentwickelt, die politischen Instrumente gestärkt und die öffentliche Unterstützung für eine ehrgeizige Klimapolitik befördert werden kann. |
| Keywords: | Klimapolitik EU, Europäischer Grüner Deal, European Green Deal, Überarbeitung klimapolitische Rechtsvorschriften EU, Emissionsreduktionsziel EU 2040, Treibhausgasbudget, Budgetierung, CO2-Budget, Treibhausgasemissionen, Kumulieren von Emissionen, Kumulierung, Pariser Abkommen, Pariser Klimaabkommen, pledge and review, Verteilungsprinzipien, Weltklimarat, IPCC, Europäisches Klimagesetz, EU-Klimagesetz, Klimaschutz-Governance EU, Emissionsminderungspfade |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpakt:279924&r=ene |
| By: | Scott Morris (Center for Global Development); Rowan Rockafellow (Center for Global Development); Alan Cameron (BlueCrest Capital Management) |
| Abstract: | Sovereign bond guarantees (SBGs) are an effective but underutilized instrument available to the US government in support of developing country partners. By protecting bond purchasers in the event of a foreign issuer country’s default, SBGs substantially reduce borrowing costs for developing country governments. In this CGD policy paper, we estimate the costs and benefits of historical US sovereign bond guarantees in order to model the use of SBGs for climate finance purposes. We demonstrate that the US government-provided SBG has the effect of conferring the US government’s cost of borrowing on the partner government. On that basis, it represents substantial savings for these countries. Based on this analysis, we propose a $20 billion “Green” SBG program aimed at financing climate change mitigation efforts in 28 emerging market economies. We estimate that the US government could support $20 billion in bond issuances through a subsidy outlay of $2 billion, resulting in a 22 percent reduction in borrowing cost of the target countries, which represents $4 billion in budgetary saving for their governments. We propose that the subsidy appropriations in support of the guarantees be retained and recycled within the Green SBG program, which would substantially improve the financial leverage of the program over time. We also suggest that the program could be used for climate adaptation purposes by targeting a different group of developing countries |
| Date: | 2022–02–07 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:250&r=ene |
| By: | Afees A. Salisu (Centre for Econometrics & Applied Research, Ibadan, Nigeria; Department of Economics & Department of Economics, University of Pretoria, Private, South Africa); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | This study examines the out-of-sample predictability of expected skewness of oil price returns for stock returns of 10 (8 advanced plus 2 emerging) countries using long-range monthly data of over a century for each country. Using a distributed lag predictive econometric model, which controls for endogeneity, persistence, and conditional heteroscedasticity, we provide evidence of the strong statistical significance of the predictive impact of the third moment of oil price returns for equity returns for all the countries across various forecast horizons and length of out-of-sample periods. These findings also continue to hold for the shorter sample periods of 3 other emerging markets: Brazil, China and Russia. Our findings have important implications for academics, investors and policymakers. |
| Keywords: | Stock returns, expected skewness of oil returns, forecasting, advanced and emerging equity markets |
| JEL: | C22 G15 G17 Q02 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202339&r=ene |
| By: | Simona Pojar |
| Abstract: | Green budgeting can help governments to incorporate environmental considerations into the budget decision making process and, thus, to meet their green commitments. Integrating such tools into the regular budget process is crucial to ensure that green budgeting can influence policy development and budget allocation. This paper presents an overview of how some EU Member States use green budgeting tools when planning the budget. It shows that, considering the various stages of the budget cycle, such tools are commonly used during the preparation phase, which is essential for the inclusion of green considerations into the budget. However, green budgeting has so far been mostly used to provide transparency over government actions and less so to decide on budget allocations. As the process matures, countries aim to use green budgeting more strongly as a decision-making tool. |
| JEL: | H5 H61 Q58 Q51 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:196&r=ene |
| By: | Ahmed S. Alahmed; Lang Tong |
| Abstract: | We analyze the overall benefits of an energy community cooperative game under which distributed energy resources (DER) are shared behind a regulated distribution utility meter under a general net energy metering (NEM) tariff. Two community DER scheduling algorithms are examined. The first is a community with centrally controlled DER, whereas the second is decentralized letting its members schedule their own DER locally. For both communities, we prove that the cooperative game's value function is superadditive, hence the grand coalition achieves the highest welfare. We also prove the balancedness of the cooperative game under the two DER scheduling algorithms, which means that there is a welfare re-distribution scheme that de-incentivizes players from leaving the grand coalition to form smaller ones. Lastly, we present five ex-post and an ex-ante welfare re-distribution mechanisms and evaluate them in simulation, in addition to investigating the performance of various community sizes under the two DER scheduling algorithms. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.18792&r=ene |
| By: | Sarah Johnston; Yifei Liu; Chenyu Yang |
| Abstract: | Generators applying to connect to the U.S. power grid go through an interconnection queue. Most wind and solar generators that begin the process do not complete it. Using new data, we find that a long queue increases the average waiting time, and high interconnection costs are a key factor in a generator’s decision to withdraw. We develop and estimate a dynamic model of the queue and quantify the effects of policy reforms. Our simulations indicate that reducing waiting times can significantly increase completions. An alternative queuing mechanism can therefore increase completed capacity by removing certain generators to reduce congestion. A flat entry fee has a similar effect. We also quantify the effects of reforming how interconnection costs are assessed. These policy reforms lead to a substantial reduction in carbon emissions. |
| JEL: | D02 L0 Q00 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31946&r=ene |
| By: | Sivropoulos-Valero, Anna Valero; Van Reenen, John |
| Keywords: | ES/V009478/1; ES/T014431/1; Wiley deal |
| JEL: | Q50 Q58 |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120737&r=ene |
| By: | Burda, Michael; Zessner-Spitzenberg, Leopold |
| JEL: | O44 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:vfsc23:277677&r=ene |
| By: | Golka, Philipp; Murau, Steffen; Thie, Jan-Erik |
| Abstract: | Sustainable finance is often discussed as a solution to the climate crisis, but its impacts are limited and its discourse focusses on mobilizing private investments through public de-risking, without considering direct government action. We argue that this is due to an implicit reference to mainstream economic theory assuming that an active state leads to time inconsistency problems and crowding-out effects. However, these assumptions have been sufficiently refuted as public investments may actually crowd-in private capital. We therefore propose a paradigm shift towards what we call “Public Sustainable Finance”, geared at empowering the role of the state in the Green Transition on the discursive, policy, and political economy levels. Studying the case of Germany, we show how Public Sustainable Finance can be introduced despite tight fiscal regimes. To this end, we propose that – and describe how – the Klima- und Transformationsfonds (KTF) be given its own borrowing powers. By borrowing an average of 23 billion euros annually from 2024 to 2030, the existing financing gap that has been exacerbated following the November 2023 constitutional court ruling can be closed, enabling a more rapid and effective Green Transition. |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:zcvue&r=ene |
| By: | Leonor Coutinho; Mirko Licchett |
| Abstract: | Inflation differentials in the euro area widened in 2022 to historically high levels in the context of a surge in energy and other commodity prices. On the one hand, some degree of inflation differentials within the euro area may be seen as a natural part of an adjustment process, rather than a problem per se for economic policy. On the other hand, persistent inflation differentials can adversely affect competitiveness in higher inflation countries. This paper uses principal component and panel regression models to investigate the drivers of inflation differentials. Our empirical estimates suggest that the asymmetric impact of a common shock – mostly related to the increase in energy and food prices – can explain around half of the increase in headline inflation in 2022 in the euro area. The estimated responses to the common factor increase with energy intensity, reflecting the important role of energy prices in driving global shocks to inflation, and decline with the share of services in Gross Value Added (GVA), suggesting that countries with a larger manufacturing sector have been more sensitive to common factors. The common factor is also found more prominent in 2020-22 than in previous periods. The remainder of inflation developments can be explained by inflation persistence, along with more local and crisis related factors. This persistence might be associated with a relatively long pass-through for the energy shock, related to the staggered nature of supply contracts and price setting in the euro area. Indeed, when estimated without the lagged dependent variable, controlling for residual autocorrelation, our results suggest that common factors can account for up to two thirds of the increase in inflation in 2022 while the contribution of local drivers remains more limited. |
| JEL: | E31 F45 Q43 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:euf:dispap:197&r=ene |
| By: | Ankel-Peters, Jörg; Schmidt, Christoph M. |
| Abstract: | The toolkit of the so-called credibility revolution dominates empirical economics, with its promise of causal identification to improve scientific knowledge and ultimately policy. By examining the case of rural electrification in the Global South, this opinion paper exposes the limits of this evidence-based policy paradigm. The electrification literature boasts many studies using the credibility revolution toolkit, but at the same time several systematic reviews demonstrate that the evidence is divided between very positive and muted effects. This bifurcation presents a challenge to the science-policy interface, where policymakers, lacking the resources to sift through the evidence, may be drawn to the results that serve their (agency's) interests. The interpretation is furthermore complicated by unresolved methodological debates circling around external validity as well as selective reporting and publication decisions. These features, we argue, are not particular to the electrification literature but inherent to the credibility revolution toolkit. We propose a humbler evaluation approach that refrains from undue generalization and rather focusses on improving the specific program under evaluation. |
| Abstract: | Das Instrumentarium der so genannten Glaubwürdigkeitsrevolution dominiert die empirische Ökonomie mit ihrem Versprechen, durch die Identifizierung von Kausalzusammenhängen wissenschaftliche Erkenntnisse und letztlich die Politik zu verbessern. Durch die Untersuchung des Falles ländlicher Elektrifizierung im Globalen Süden zeigt dieses Positionspapier die Grenzen des evidenzbasierten Politikparadigmas auf. In der Literatur zur Elektrifizierung finden sich zahlreiche Studien, die das Instrumentarium der Glaubwürdigkeitsrevolution nutzen, doch gleichzeitig zeigen mehrere systematische Übersichten, dass die Evidenz zwischen sehr positiven und gedämpften Auswirkungen aufgeteilt ist. Diese Zweiteilung stellt eine Herausforderung für die Schnittstelle zwischen Wissenschaft und Politik dar, da die politischen Entscheidungsträger, die nicht über die Mittel verfügen, um die Beweise zu sichten, von den Ergebnissen angezogen werden können, die ihren (Behörden-)Interessen dienen. Die Interpretation wird außerdem durch ungelöste methodologische Debatten um die externe Validität sowie durch selektive Berichterstattung und Veröffentlichungsentscheidungen erschwert. Diese Merkmale, so argumentieren wir, sind keine Besonderheit der Elektrifizierungsliteratur, sondern dem Instrumentarium der Glaubwürdigkeitsrevolution inhärent. Wir schlagen einen bescheideneren Evaluierungsansatz vor, der von unangemessenen Verallgemeinerungen absieht und sich stattdessen auf die Verbesserung des zu evaluierenden spezifischen Programms konzentriert. |
| Keywords: | Energy access, evidence-based decision-making, systematic reviews, meta-science |
| JEL: | O13 D78 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:280423&r=ene |
| By: | Bianchetti, Luca |
| Abstract: | El presente trabajo se enmarca en una investigación más amplia que busca describir el avance de la transición energética en Argentina. En este se presentan cuatro dimensiones (seguridad energética, democracia y ciudadanía, justicia y sostenibilidad ambiental) que se proponen utilizar al describir la transición energética desde el enfoque de la triple sostenibilidad, así como también la operacionalización de las variables que se suscriben a estas dimensiones y su respectiva disponibilidad. |
| Keywords: | Transición Energética; Recursos Energéticos; Fuentes de Energía Renovables; Argentina; |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:3988&r=ene |
| By: | OCDE |
| Abstract: | Ce document donne un aperçu du développement des énergies renouvelables dans les régions ultrapériphériques de l’Union européenne (RUP de l’UE), se concentrant sur la capacité de ces énergies à contribuer à la transition verte tout en ouvrant des perspectives de développement économique durable. Il décrit les cadres d'action et les outils mis en place par les RUP de l’UE pour agir dans le domaine des énergies renouvelables, et formule des recommandations politiques. Ce document s’inscrit dans le cadre du projet conjoint UE-OCDE sur les régions ultrapériphériques du monde. |
| JEL: | O52 O54 O55 P45 R11 R58 Q42 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dcdaab:52-fr&r=ene |
| By: | Chloé Zapha |
| Abstract: | This paper identifies the bank credit restrictions that small firms face after bankruptcy. Using the French credit register, I implement a difference-in-difference strategy that exploits staggered removal of bankruptcy flags in the form of an exogenous change in credit ratings. I focus on small and medium-sized businesses between 2012 and 2019 and show that flag removal leads to an increase in bank credit of 1.7% and a 2 percentage point higher chance of forming new banking relationships. Less well-informed banks increase their credit supply after flag removal, particularly to firms whose credit rating reveals good financial performance. New banks start lending to the most constrained firms. As a result, firms substitute trade credit for bank credit and increase their investment rate. This paper supports the policy choice of shortening the bankruptcy flag. |
| Keywords: | Corporate bankruptcy, Debt Restructuring, Credit Rating, Bank Lending Relationship, SMEs |
| JEL: | G21 G24 G33 G34 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:928&r=ene |
| By: | Marwil J. Dávila-Fernández; Germana Giombini; Edgar J. Sánchez-Carrera |
| Abstract: | Recent empirical evidence is challenging the conventional paradigm in macroeconomics, which assumes money is neutral in the long run. On the other hand, central banks are gradually acknowledging that climate change can potentially impact price stability, and the term climateflation has entered the vocabulary of policymakers. This paper contributes to current developments between these two major themes. We present an Overlapping Generations (OLG) model to study the interplay between conventional monetary policy and the environment in a context where the so-called “independence hypothesis” does not hold. Individuals are assumed to derive utility from consumption and environmental quality. Firms operate in a competitive market, but output is weighted by a damage function reflecting a negative externality from ecological degradation. We innovate by linking the environment to inflation through inflationary expectations in a modified Phillips curve. Central banks set the nominal interest rate using a generalised Taylor rule. They affect wealth composition via the individual’s intertemporal optimisation problem. Numerical experiments allow us to assess the robustness of the trade-off between environmental quality and economic activity when (i) expectations are more responsive to climateflation, (ii) the monetary authority is more inflation-averse, (iii) the central bank increases the inflation target, and (iv) fiscal policy is less stringent. |
| Keywords: | Monetary policy; Inflation targeting; Green transition; OLG. |
| JEL: | E52 E60 O44 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:usi:wpaper:905&r=ene |
| By: | Alexis Lebeau (EDF R&D SYSTEME - EDF R&D - EDF R&D - EDF - EDF, LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Date: | 2023–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04305844&r=ene |
| By: | La, Viet-Phuong; Nguyen, Minh-Hoang; Vuong, Quan-Hoang |
| Abstract: | Climate change, primarily driven by human activities, is becoming one of the most urgent global challenges of our time. Despite lingering doubts about climate change in some research documents, strong consensus within the scientific community still affirms that global surface temperatures have risen in recent decades. Over the past decade, significant efforts have been made by humans to address the climate change crisis, resulting in certain impacts in combating climate change and raising awareness about its consequences. However, the question remains: Are we heading in the right direction to effectively address this crisis, or do we need to reconsider our approach? This essay will examine some of major achievements in the fight against climate change, the increasing awareness of its impacts, the escalating severity of the climate crisis, and whether our actions are on the right track or require reevaluation. |
| Date: | 2023–11–18 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:xv4u5&r=ene |
| By: | Hansen, Gerrit |
| Abstract: | Die diesjährigen Zwischenverhandlungen der Klimarahmenkonvention der Vereinten Nationen (UNFCCC) in Bonn geben wenig Grund zum Optimismus. Verhärtete Fronten vor allem zwischen einigen großen Schwellenländern und den Industriestaaten prägten das Treffen. Uneinigkeit darüber, wie die »gemeinsame, aber differenzierte Verantwortung« und das Gerechtigkeitsprinzip auszulegen seien, verhinderten substantielle Fortschritte. Die Vorbereitungen für die erste Globale Bestandsaufnahme zur Ambitionssteigerung im Rahmen des Klimaabkommens von Paris, die bei der 28. Vertragsstaatenkonferenz (COP28) im Dezember in Dubai abgeschlossen werden soll, verliefen enttäuschend. Gleichzeitig versuchten einige Schwellenländer und insbesondere China, die Bedeutung des sechsten Sachstandsberichts (AR6) des Weltklimarates IPCC als gemeinsame wissenschaftliche Basis zu relativieren. Sollte China bei dieser Haltung bleiben, drohen negative Konsequenzen für den multilateralen Klimaprozess weit über die COP28 hinaus. |
| Keywords: | UN-Klimaprozess, UN-Klimarahmenkonvention, UNFCCC, Klimaabkommen von Paris, Pariser Klimaabkommen, Prinzipien des Pariser Klimaabkommens, Artikel 2 Pariser Abkommen, IPCC, COP28 Dubai, Globale Bestandsaufnahme, Global Stocktake, GST, nationale Klimabeiträge, NDCs, Klimafinanzierung, Bridgetown-Agenda, Klimaprozess und wissenschaftliche Erkenntnisse |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpakt:279921&r=ene |
| By: | Alessandro Bratti (Autorità di bacino distrettuale del fiume Po (ADBPO) and University of Ferrara); Alberto Cavazzini (University of Ferrara, DOCPAS, Italy); Elisa Chioatto (University of Ferrara, DEM, Italy); Massimiliano Mazzanti (University of Ferrara, DEM, Italy); Fabiola Onofrio (University of Ferrara, DEM, Italy) |
| Keywords: | green chemistry, innovation, petrochemical industry |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:srt:wpaper:0323&r=ene |
| By: | Fabio GALEOTTI; Astrid HOPFENSITZ; César MANTILLA |
| Abstract: | One of the most challenging problems of society today is climate change. Faced with this problem, people must change the way they behave to mitigate the effects of climate change and adapt to them. Such change in behavior can be achieved through a normative shift, i.e., a change in the social norms that regulate people’s social interactions and behavior in a society or a group. Climate change education (CCE) can be a powerful tool to achieve this shift. In this paper, we conduct a systematic review (SR) of the literature on CCE, with the aim of offering a comprehensive overview of the empirical research in this field. We particularly emphasize studies that assess the effects of educational interventions on social norms. Specifically, we focus on studies that either measure actual behaviors or investigate individuals' beliefs regarding the prevalence or acceptability of these behaviors in a society or reference group. We identify 86 studies evaluating CCE interventions. Among these, only 19 look at the effects of CCE on norm-related beliefs or actual behavior. Among the 86 studies, we find a disproportionate focus on interventions conducted in high-income, less climate-vulnerable countries and urban populations, with a general absence of cross-country comparisons. Most studies also employ pre-post evaluations, which are more susceptible to demand effects and social desirability bias. Among the 18 studies that look at norms, only few of them provide a belief-based measure of social norms. The vast majority measures actual behavior, mainly in terms of recycling, trashing and energy saving. Most interventions involve activities aimed at engaging learners. Others focus on nudges (like stickers or posters). A minority is based on lectures, deliberative discussions and interaction with scientists or science in general. The results of this SR reveal important gaps in the literature and potential tensions that can inform future research in this area. |
| JEL: | Q |
| Date: | 2023–11–14 |
| URL: | http://d.repec.org/n?u=RePEc:avg:wpaper:en16145&r=ene |
| By: | Chenglin Qing; Shanyue Jin |
| Abstract: | Recently, environmental, social, and governance (ESG) has become an important factor in companies' sustainable development. Artificial intelligence (AI) is also a core digital technology that can create innovative, sustainable, comprehensive, and resilient environments. ESG- and AI-based digital transformation is a relevant strategy for managing business value and sustainability in corporate green management operations. Therefore, this study examines how corporate sustainability relates to ESG- and AI-based digital transformation. Furthermore, it confirms the moderating effect of green innovation on the process of increasing sustainability. To achieve the purpose of this study, 359 data points collected for hypothesis testing were used for statistical analysis and for mobile business platform users. The following conclusions are drawn. (1) ESG activities have become key variables that enable sustainable corporate growth. Companies can implement eco-friendly operating processes through ESG activities. (2) This study verifies the relationship between AI-based digital transformation and corporate sustainability and confirms that digital transformation positively affects corporate sustainability. In addition, societal problems can be identified and environmental accidents prevented through technological innovation. (3) This study does not verify the positive moderating effect of green innovation; however, it emphasizes its necessity and importance. Although green innovation improves performance only in the long term, it is a key factor for companies pursuing sustainable growth. This study reveals that ESG- and AI-based digital transformation is an important tool for promoting corporate sustainability, broadening the literature in related fields and providing insights for corporate management and government policymakers to advance corporate sustainability. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.18351&r=ene |
| By: | Puig Julian Mariano |
| Abstract: | El trabajo estudia la pobreza energética (PE) en Argentina, utilizando las últimas tres encuestas disponibles de gastos de los hogares (ENGHo) para los años 2005, 2013 y 2018. La PE se estudia tanto desde un enfoque unidimensional como multidimensional. El primero define bajo PE a los hogares que destinan más del 10% de su ingreso a gastos en servicios energéticos (``regla del 10%''). El segundo define PE en base a el Indicador de Pobreza Energética Multidimensional (MEPI) que considera dimensiones de acceso físico a energía y propiedad de electrodomésticos además del gasto energético. Bajo ambas mediciones, la PE tiene una forma de ``U'' con caídas significativas entre 2005 y 2013, y aumentos considerables hacia 2018. La ``regla del 10%'' indica que las tasas de PE para dichos años son 12.1%, 1.9%, y 17.0%, respectivamente. Esto es consistente con la agresiva política de subsidios a la energía implementada entre 2002 y 2015, revertida desde 2016. El trabajo también explora heterogeneidades regionales y encuentra que aquellas provincias de menores ingresos experimentan mayores niveles de PE. Finalmente, se encuentra una remarcable relación positiva y significativa entre la PE y la pobreza monetaria. |
| JEL: | I32 Q40 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:aep:anales:4687&r=ene |