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on Energy Economics |
| By: | Gregory Casey; Woongchan Jeon; Christian Traeger; Gregory P. Casey; Christian P. Traeger |
| Abstract: | We study clean energy subsidies in a quantitative climate-economy model. Clean en-ergy subsidies decrease carbon emissions if and only if they lower the marginal product of dirty energy. The constrained-efficient subsidy equals the marginal external cost of dirty energy multiplied by the marginal impact of clean energy production on dirty energy production. With standard functional forms, two factors determine the impact of clean subsidies on dirty energy production: the elasticity of substitution between clean and dirty energy and the price elasticity of demand for energy services. At standard parameter values, clean production subsidies increase emissions and decrease welfare relative to laissez faire. With greater substitutability between clean and dirty energy, the subsidies in the Inflation Reduction Act can generate modest emissions reductions. Even in this more optimistic scenario, a clean subsidy generates significantly higher emissions and lower welfare than a tax on dirty energy. |
| Keywords: | climate change mitigation, second-best policies, economic growth |
| JEL: | H23 O44 Q43 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10828&r=ene |
| By: | Chen Chris Gong; Falko Ueckerdt; Christoph Bertram; Yuxin Yin; David Bantje; Robert Pietzcker; Johanna Hoppe; Michaja Pehl; Gunnar Luderer |
| Abstract: | Decarbonizing China's energy system requires both greening the power supply and end-use electrification. While the latter speeds up with the electric vehicle adoption, a rapid power sector transformation can be technologically and institutionally challenging. Using an integrated assessment model, we analyze the synergy between power sector decarbonization and end-use electrification in China's net-zero pathway from a system perspective. We show that even with a slower coal power phase-out, reaching a high electrification rate of 60% by 2050 is a robust optimal strategy. Comparing emission intensity of typical end-use applications, we find most have reached parity with incumbent fossil fuel technologies even under China's current power mix due to efficiency gains. Since a 10-year delay in coal power phase-out can result in an additional cumulative emission of 28% (4%) of the global 1.5{\deg}C (2{\deg}C) CO2 budget, policy measures should be undertaken today to ensure a power sector transition without unexpected delays. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.04332&r=ene |
| By: | Fachry Abdul Razak Afif (Institute for Economic and Social Research, Faculty of Economy and Business, Universitas Indonesia (LPEM FEB UI)); Venkatachalam Anbumozhi (Economic Research Institute for ASEAN and East Asia (ERIA)); Dongmei Chen (King Abdullah Petroleum Studies and Research Center (KAPSARC)); Alin Halimaussadiah (LPEM FEB UI); Vida Hardjono (University of Indonesia); Roes E.G. Lufti (LPEM FEB UI); Dian Lutfiana (Economic Research Institute for ASEAN and East Asia (ERIA)); Julio Mauricio (KAPSARC); Alloysius Joko Purwanto (Economic Research Institute for ASEAN and East Asia (ERIA)); Prof. Widodo Wahyu Purwanto (University of Indonesia); Jitendra Roychoudhury (KAPSARC); Citra Endah Nur Setyawati (Economic Research Institute for ASEAN and East Asia (ERIA)); Majed Al Suwailem (KAPSARC); Wing T. Woo (Jeffrey Cheah Institute on Southeast Asia) |
| Abstract: | As carbon dioxide emission reductions become increasingly urgent to counter climate change, many nations have announced netzero emissions targets. Achieving a net-zero economy will require the decarbonisation of electricity generation, massive expansion of low-carbon energy systems, and investment in net-zero-carbon technologies. These adjustments must consider the existing energy, economic, and social development imperatives of advanced and developing countries, while encouraging regional cooperation. This brief assesses energy transition challenges for the Association of Southeast Asian Nations and the Gulf Cooperation Council (GCC), and proposes new policy pathways towards an inclusive global netzero economy |
| Date: | 2023–02–02 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:pb-2022-09&r=ene |
| By: | Amélie Géal; Bernhard Klaus Michel |
| Abstract: | In international agreements, countries are considered responsible for the greenhouse gas emissions linked to their production activities. The carbon footprint provides an alternative assessment of this responsibility by attributing emissions to the country where the goods and services are consumed. This study presents the production-based CO2 emissions and the carbon footprint of the three Belgian regions for the year 2015. The production-based CO2 emissions are derived from the regional air emission accounts developed for this study, while the regional carbon footprints are calculated based on an input-output model and input-output data that include CO2 emissions. According to the results, the carbon footprint exceeds production-based emissions for all three regions. This implies that their contribution to global CO2 emissions is larger from a consumption perspective than from a production perspective. |
| JEL: | C67 F18 Q53 Q54 Q56 R15 |
| Date: | 2023–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:202301&r=ene |
| By: | Sileci, Lorenzo |
| Abstract: | I assess the air quality and environmental equity impacts of the 2008 carbon tax in British Columbia. Using high-resolution data and a synthetic difference-in-differences strategy, I find that the carbon tax has reduced PM2.5 emissions by 5.2-10.9%. This result is heterogeneously distributed, with larger reductions in areas with lower baseline pollution, lower population density, lower material deprivation, and higher income. While all areas experience substantial positive co-benefits in terms of reduced air pollution hazard rates, quantified at $198 per capita, my results imply a widening of the pre-existing environmental justice gaps. This dynamic represents an additional dimension of carbon tax regressiveness. |
| Keywords: | carbon tax; air quality; PM2.5; co-benefits; environmental justice; air pollution; British Columbia; Canada; climate policy; health impacts; social impacts |
| JEL: | Q58 Q53 H23 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121047&r=ene |
| By: | Beiser-Mcgrath, Liam; Busemeyer, Marius R. |
| Abstract: | Stringent policies that significantly increase the cost of greenhouse gas emissions, such as CO2, are increasingly necessary for mitigating climate change. Yet while richer individuals in society generate the most CO2 emissions, and thus will face the largest absolute cost burden, they also tend to be more supportive of stringent environmental policies. In this paper, we examine how information about the distribution of carbon emissions by income affects support for carbon taxation. While carbon taxation is widely advocated as the most efficient policy for mitigating climate change, it faces significant political hurdles due to its distributional costs. Using original survey data, with an embedded experiment, we find that providing information about the actual distribution of household CO2 emissions by income significantly changes individuals’ support for carbon taxation. These effects are particularly pronounced in the bottom of the household income distribution, leading to increased support for costly climate policies. However, individuals who believe that carbon taxes will reduce their income continue to hold their level of support for carbon taxation. Our findings have significant implications for understanding the public’s response to the distributional consequences of the green transitions, and ultimately their political feasibility. |
| Keywords: | EXC-2035/1; Wiley deal |
| JEL: | J1 |
| Date: | 2023–12–15 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120925&r=ene |
| By: | Mr. Serhan Cevik; Mr. Nadeem Ilahi; Mr. Krzysztof Krogulski; Ms. Grace B Li; Sabiha Mohona; Yueshu Zhao |
| Abstract: | EU’s neighborhood countries (EUN) have lagged the EU on emissions mitigation; coal-heavy power generation and industrial sectors are a key factor. They have also trailed EU countries in emissions mitigation policies since 2000, with little use of market-based instruments, and they still have substantial fossil fuel subsidies. Increasingly stringent EU mitigation policies are asociated with lower emissions in EUN. Overall output effects of the CBAM, in its current form, would be limited, though exports and emissions-intensive industries could be heavily impacted. A unilaterally adopted economywide carbon tax of $75 per ton would significantly lower emissions by 2030, with minimal consequences for output or household welfare, though a safety net for the affected workers may be necessary. To become competitive today by attracting green FDI and technology, overcoming infrastructure constraints and integrating into EU’s supply chains, EUN countries would be well served to front load decarbonization, rather than postpone it for later. |
| Keywords: | Climate change; carbon emissions; climate change mitigation ; carbon tax; Europe |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2023/246&r=ene |
| By: | Kevin R. Kaushal; Lars Lindholt; Hidemichi Yonezawa (Statistics Norway) |
| Abstract: | Unilateral CO2 emission reduction can lead to carbon leakage, such as relocation of power-intensive and trade-exposed industries. In the EU emission trading system, these industries are also subjected to higher cost of electricity due to emission pricing in this sector. As a result, the industries in the EU receive free emission allowances to mitigate carbon leakage as well as CO2 compensation due to higher electricity cost. This paper examines the welfare effects of supplementing free allowances with a CO2 compensation on the power-intensive and trade-exposed goods. The analytical results suggest that introducing CO2 compensation has a regional and global welfare improving effect under certain plausible conditions. Numerical simulations in the context of the EU ETS support the analytical findings if the emission reduction target is stringent enough. |
| Keywords: | CO2 compensation; Emission trading system; Unilateral policy; Carbon leakage |
| JEL: | D61 F18 H23 Q54 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:1008&r=ene |
| By: | Kohnert, Dirk |
| Abstract: | Since Russia's war in Ukraine, many European countries have been scrambling to find alternative energy sources. One of the answers was to increase imports of liquefied natural gas (LNG). By bypassing the use of pipelines from the East by building LNG terminals, the EU opened up a wider variety of potential suppliers. The Europe-Africa Energy and Climate Partnership provides a framework for a win-win alliance. African countries will be key players in the future, including sub-Saharan countries such as Nigeria, Senegal, Mozambique and Angola. According to the REPowerEU plan, hydrogen partnerships in Africa will enable the import of 10 million tons of hydrogen by 2030, replacing about 18 billion cubic meters of imported Russian gas. Algeria, Niger and Nigeria recently agreed to build a 4, 128-kilometer trans-Saharan gas pipeline that would run through the three countries to Europe. Once completed, the pipeline will transport 30 billion cubic meters of gas per year. The African Coalition for Trade and Investment (ACTING) estimates potential sub-Saharan LNG export capacity at 134 million tonnes of LNG (approximately 175 billion m3) by 2030. Sub-Saharan Africa is also expected to become the main producer of green hydrogen by 2050. However, this market remains to be developed and requires significant expansion of renewable production and water availability. However, the EU countries and companies involved would be well advised to take note of the adoption of much stricter EU greenhouse gas reduction targets for 2030 and the publication of the European Commission's methane strategy. That being said, the EU could risk having more than half of Europe's LNG infrastructure idle by 2030, as European LNG capacity in 2030 exceeds total forecast gas demand, including LNG and pipeline gas. Regardless, it should not be forgotten that African countries want and need to develop their domestic gas markets as a priority, and that export potential depends on this domestic development. In the long term, a global energy mix would be needed to accelerate change driven by new resources, new technologies and climate commitments. These changes in the use and availability of energy resources would also affect the use of fossil fuels. Regardless of this, in addition to the LNG supply, the EU must also take care of increasing its own storage capacities to be able to guarantee a cost-efficient response to a natural gas supply bottleneck. However, LNG alone is not enough to ensure the resilience of the system in the event of a supply failure. Alternative energy resources and energy saving remain essential. |
| Keywords: | GNL; Économie hydrogène; e-carburants; Terminaux GNL; Gaz naturel; Sécurité énergétique; Stockage de gaz; Afrique subsaharienne; UE; REPowerEU; Gazoduc transsaharien; marchés émergents; Pacte vert pour l'Europe; Zone de libre-échange; continentale africaine; Eni, TotalEnergies; BP; Sonatrach; Nigeria; Angola; Mozambique; Tanzanie; Sénégal; Cameroun; Guinée équatoriale; Namibie; Études africaines; |
| JEL: | E22 E23 F13 F18 F23 F35 F54 L71 L95 N57 N77 O13 Q35 Z13 |
| Date: | 2023–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119420&r=ene |
| By: | Yongyang Cai; Khyati Malik; Hyeseon Shin |
| Abstract: | We build a dynamic multi-region model of climate and economy with emission permit trading among 12 aggregated regions in the world. We solve for the dynamic Nash equilibrium under noncooperation, wherein each region adheres to the emission cap constraints following commitments outlined in the 2015 Paris Agreement. Our model shows that the emission permit price reaches $749 per ton of carbon by 2050. We demonstrate that a regional carbon tax is complementary to the global cap-and-trade system, and the optimal regional carbon tax is equal to the difference between the regional marginal abatement cost and the permit price. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.15563&r=ene |
| By: | Schlund, David (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The introduction of clean hydrogen as a future energy commodity has prompted significant interest in developing dedicated transportation and storage infrastructures as an enabler for cross-border hydrogen trade and cost-efficient supply. This paper addresses the complex challenges associated with the development of a European hydrogen infrastructure within the existing natural gas network while maintaining the security of supply for natural gas. Through an extension of an existing dispatch model for European natural gas supply and transportation by endogenous investments in hydrogen production, transportation, and storage infrastructure, a comprehensive analysis of the interplay between natural gas and hydrogen supply becomes accessible. The new model is formulated as a mixed-integer linear program in order to explicitly consider the binary decision of repurposing natural gas pipelines. The results offer insights into the cost-efficient strategic planning of a European hydrogen network by simulating a range of scenarios with varying economic and technical constraints. The case study finds a dominant role of the availability of renewable energy sources in shaping the network. Also, providing flexibility through flexible imports, production, or hydrogen storage becomes an essential element in a future hydrogen supply chain. The interconnection of all European countries with dedicated hydrogen pipelines is robust across all scenarios. However, the sizing and choice of large import pipelines strongly depend on the assumed techno-economic constraints. |
| Keywords: | hydrogen economics; hydrogen infrastructure; hydrogen storage; hydrogen trade; strategic energy planning; mixed-integer linear program |
| JEL: | C61 L95 M20 Q41 Q42 Q48 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2023_008&r=ene |
| By: | Rabah Arezki (Harvard Kennedy School); Adnan Mazarei (Peterson Institute for International Economics) |
| Abstract: | The Middle East and North Africa region (MENA) is addicted to fossil fuels, but so too is the rest of the world economy. Solutions to the energy transition have thus to be found in a coordinated global shift in both the supply and demand for fossil fuels and clean(er) energy, where multilateral institutions can play an important role. These institutions could help bolster international technology transfers to MENA, as well as scale up investment and trade in clean energy to facilitate the global energy transition. Given the potential in MENA for solar power, the region could remain a global hub, this time for clean energy. |
| Date: | 2023–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:283&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. |
| Keywords: | persistent unemployment, wealth preferences, pollution, emission restriction, clean technology transfer |
| JEL: | F13 F41 F42 Q52 Q56 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10825&r=ene |
| By: | Dongwei Zhao; Vladimir Dvorkin; Stefanos Delikaraoglou; Alberto J. Lamadrid L.; Audun Botterud |
| Abstract: | This work proposes an uncertainty-informed bid adjustment framework for integrating variable renewable energy sources (VRES) into electricity markets. This framework adopts a bilevel model to compute the optimal VRES day-ahead bids. It aims to minimize the expected system cost across day-ahead and real-time stages and approximate the cost efficiency of the stochastic market design. However, solving the bilevel optimization problem is computationally challenging for large-scale systems. To overcome this challenge, we introduce a novel technique based on strong duality and McCormick envelopes, which relaxes the problem to a linear program, enabling large-scale applications. The proposed bilevel framework is applied to the 1576-bus NYISO system and benchmarked against a myopic strategy, where the VRES bid is the mean value of the probabilistic power forecast. Results demonstrate that, under high VRES penetration levels (e.g., 40%), our framework can significantly reduce system costs and market-price volatility, by optimizing VRES quantities efficiently in the day-ahead market. Furthermore, we find that when transmission capacity increases, the proposed bilevel model will still reduce the system cost, whereas the myopic strategy may incur a much higher cost due to over-scheduling of VRES in the day-ahead market and the lack of flexible conventional generators in real time. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.03868&r=ene |
| By: | Sophie Zhou; Frederick van der Ploeg; Rick van der Ploeg |
| Abstract: | We study climate change in a model with a carbon-intensive and a green sector, each subject to stochastic sectoral productivity shocks, and show how the underlying economic structure affects the risk-adjusted discount rate and the climate risk premium in the social cost of carbon (SCC). Consumption growth, aggregate consumption volatility, and the climate beta are all affected by the elasticity of substitution between the two sectors and the relative size of the sectors, and vary as the green transition progresses. The climate risk premium is hump-shaped during the green transition, with the climate beta playing a dominant role in its magnitude. For sufficiently strong substitutability between the two sectors and sufficiently low correlation between the sectoral shocks, decarbonisation can temporarily reduce aggregate consumption risk, as the climate beta becomes negative in the mid phase of the transition. The risk-adjusted discount rate first falls then rises during the green transition, leading to a SCC to GDP ratio that rises then falls as the green sector grows. We illustrate our analytical results numerically. |
| Keywords: | social cost of carbon, climate beta, carbon risk premium, two-sector model, asset pricing |
| JEL: | E60 G12 H23 O41 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10840&r=ene |
| By: | Al-Ubaydli, Omar; Cassidy, Alecia; Chatterjee, Anomitro; Khalifa, Ahmed; Price, Michael |
| Abstract: | High resource users often have the strongest response to behavioral interventions promoting conservation. Yet, little 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. However, this masks significant heterogeneity. Using machine learning methods on supplemental survey data, we elucidate how agency, motivation, and responsibility activate conservation responses to our identity primes. |
| Keywords: | electricity consumption; natural field experiments; identity; moral suasion; agency; Qatar; super-users; consumer behaviour; electricity; energy; energy saving; household energy |
| JEL: | C93 D90 Q41 |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121048&r=ene |
| By: | Davide D. Pace; Taisuke Imai; Peter Schwardmann; Joël J. van der Weele |
| Abstract: | With a large representative survey (N=1, 128), we document that consumers are very uncertain about the emissions associated with various actions, which may affect their willingness to reduce their carbon footprint. We experimentally test two channels for the behavioural impact of such uncertainty, namely risk aversion about the impact of mitigating actions and the formation of motivated beliefs about this impact. In two large online experiments (N=2, 219), participants make incentivized trade-offs between personal gain and (uncertain) carbon impact. We find no evidence that uncertainty affects individual climate change mitigation efforts through risk aversion or motivated belief channels. The results suggest that reducing consumer uncertainty through information campaigns is not a policy panacea and that communicating scientific uncertainty around climate impact need not backfire. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:dpr:wpaper:1227&r=ene |
| By: | Gordon Rausser; Galina Chebotareva; Wadim Strielkowski; Lubos Smutka |
| Abstract: | This paper explores the critical question of the sustainability of Russian solar energy initiatives in the absence of governmental financial support. The study aims to determine if Russian energy companies can maintain operations in the solar energy sector without relying on direct state subsidies. Methodologically, the analysis utilizes established investment metrics such as Net Present Value (NPV), Internal Rate of Return (IRR), and Discounted Payback Period (DPP), tailored to reflect the unique technical and economic aspects of Russian solar energy facilities and to evaluate the influence of sector-specific risks on project efficiency, using a rating approach. We examined eleven solar energy projects under ten different scenarios to understand the dynamics of direct state support, exploring variations in support cessation, reductions in financial assistance, and the projects' resilience to external risk factors. Our multi-criteria scenario assessment indicates that, under the prevailing market conditions, the Russian solar energy sector is not yet equipped to operate efficiently without ongoing state financial subsidies. Interestingly, our findings also suggest that the solar energy sector in Russia has a greater potential to reduce its dependence on state support compared to the wind energy sector. Based on these insights, we propose energy policy recommendations aimed at gradually minimizing direct government funding in the Russian renewable energy market. This strategy is designed to foster self-sufficiency and growth in the solar energy sector. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.07240&r=ene |
| By: | Zinke, Jonas (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | As redispatch costs and their associated distributional impacts continue to rise, the discussion on reconfiguring bidding zones in European power markets persists. However, determining an appropriate bidding zone configuration is a non-trivial task, as it must prove beneficial under varying weather conditions, load situations, and an uncertain future, essentially necessitating persistent benefits. This paper uses the German-Luxembourg market area as an example to investigate the impact of uncertain factors, such as short-term weather patterns and long-term system changes, on the potential reduction of redispatch costs resulting from a two-zone split. Employing hierarchical clustering on hourly time series of Locational Marginal Prices for multiple historical weather and future scenario years, the paper derives bidding zone splits and assesses their robustness regarding redispatch cost reduction. Sensitivities to uncertain factors such as grid and renewable expansion, demand development, and fuel prices are investigated. The results indicate that a north-south split of the German-Luxembourg market area can robustly reduce redispatch costs.The impact on the reduction potential of yearly weather fluctuations is limited, owing to the structural nature of grid bottlenecks. However, the long-term transformations within the powersystem, coupled with their associated uncertainties, can significantly diminish the potential forcost reduction through a bidding zonesplit. |
| Keywords: | Market Design; Bidding Zone Review; Electricity Markets; Nodal Pricing; Energy System Modeling; Renewable Energies |
| JEL: | C61 D47 Q40 Q48 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2023_007&r=ene |
| By: | O'Brien, Thomas J. |
| Abstract: | In partnership with the Southern California Regional Transit Training Consortium (SCRTTC), the California State University at Long Beach (CSULB) expanded potential audiences and offered program support for the Electric Vehicle Transit Bus High Voltage Safety Awareness class, which was previously developed under the National Center for Sustainable Transportation (NCST). CSULB expanded both the number of online offerings and the geographic reach by opening the class to transit agencies and campus fleet operators within the NCST network. The course was designed to enhance a technician's basic electrical skills and 2-circuit diagnosis, while teaching students how to work with a Digital Volt-Ohm Meter (DVOM). The effort supports the broader goal of building the workforce needed to support the transition to alternative energy and zero emission bus fleets. View the NCST Project Webpage |
| Keywords: | Education, Engineering, Transit, Online training, Workforce Development, Zero emission |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt44r461q0&r=ene |
| By: | Annika Seiler (Center for Global Development); Hannah Brown (Center for Global Development); Samuel Matthews (Center for Global Development) |
| Abstract: | The Just Energy Transition Partnerships (JETPs) are a novel approach to intensifying ongoing efforts toward carbon neutrality, combining country-led strategies to decarbonize the energy sector and addressing development priorities resulting from the ensuing structural transformation with focused, long-term, and plurilateral partnerships. The launches of the $8.5 billion JETP for South Africa in 2021 and the $20.0 billion JETP for Indonesia in 2022 provide momentum for this effort. However, the legacies of coal-based power and modest renewable energy deployment in both countries present key challenges in the areas of political economy, policy alignment, finance, and supply chain development. This paper consolidates available information about these two JETPs and analyzes the approaches taken by South Africa and Indonesia, with the aim of providing a thought framework for these JETPs. It seeks to identify risks and gaps that could obstruct these JETPs’ advancement and to assess whether these JETPs can serve as blueprints for other countries looking to accelerate their move away from coal. Further, this paper highlights complementary action that could enhance the effectiveness of these JETPs and guide the development of similar partnerships in the future. The paper finds that while the JETPs for South Africa and Indonesia appear to deliver a blueprint for moving away from coal in their respective contexts, barriers, risks, and gaps call into question whether the targets can be delivered at the planned pace and scale. |
| Date: | 2023–07–25 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:302&r=ene |
| By: | Johanna Fink |
| Abstract: | This paper estimates how electricity price divergence within Sweden has affected incentives to invest in photovoltaic (PV) generation between 2016 and 2022 based on a synthetic control approach. Sweden is chosen as the research subject since it is together with Italy the only EU country with multiple bidding zones and is facing dramatic divergence in electricity prices between low-tariff bidding zones in Northern and high-tariff bidding zones in Southern Sweden since 2020. The results indicate that PV uptake in municipalities located north of the bidding zone border is reduced by 40.9-48% compared to their Southern counterparts. Based on these results, the creation of separate bidding zones within countries poses a threat to the expansion of PV generation and other renewables since it disincentivizes investment in areas with low electricity prices. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.16161&r=ene |
| By: | Andrej Woerner (LMU Munich); Taisuke Imai (University of Osaka); Davide Pace (LMU Munich); Klaus Schmidt (LMU Munich) |
| Abstract: | The public acceptability of a carbon price depends on how the revenues from carbon pricing are used. In a fully incentivised experiment with a large representative sample of the German population, we compare five different revenue recycling schemes and show that support for a carbon price is maximised by a “Climate Premium” that pays a fixed, uniform, upfront payment to each person. This recycling scheme receives more support than tax and dividend schemes, than using revenues for the general budget of the government, and than earmarking revenues for environmental projects. Furthermore, we show that participants and experts underestimate the public support for carbon pricing. |
| Keywords: | carbon pricing; pigovian taxation; political support for carbon taxes; survey experiments; |
| JEL: | H23 P18 C9 D9 |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:rco:dpaper:489&r=ene |
| By: | Kim, Key Hwan (Korea Institute for Industrial Economics and Trade); Kang, Ji Hyun (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The new green industry bill (known as la loi industrie verte) in France can be seen as the French version of the United States’ Inflation Reduction Act (IRA). The bill introduces new subsidies for electric vehicles (EVs), necessitating an analysis of the possible impact of these subsidies on Korean industries. The EV subsidies of the IRA are designed to relocate production and assembly of finished vehicles and key components parts back to the United States or the countries with which the US has free trade agreements (FTAs) in place. The EV subsidies introduced by the new bill in France, on the other hand, base subsidization on the carbon footprints of EV production and distribution. The new system of EV subsidies seeks to reduce the carbon footprint in six major areas of EV manufacturing: steel, aluminum, other materials, battery production, assembly, and transportation. This system effectively favors EVs produced in European countries, whose industries make more use of renewable energy and which are closer to France, at the cost of EV makers in China and elsewhere in Asia, as the long distances involved in transportation essentially preclude them from subsidization, and constitute non-tariff barriers (NTBs). Serving environmental and industrial objectives simultaneously, the new bill embodies an important paradigm shift in policymaking. From a trade perspective, this shift in the focus of protectionist policymaking from intermediate goods such as EV batteries to finished goods such as EVs threatens to see NTBs erected at every stage of the value chain in which these finished goods are produced. More barriers to trade under protectionist statutes like the IRA and France’s new green industry are likely to prompt the reintegration of markets and production bases after decades of geographical separation. Korean businesses will therefore be forced to change their business model, from an export-led approach that favored production in Korea to a model in which they increasingly produce goods in target markets. This has the potential to hollow out Korean industries. The manufacturing-driven Korean economy needs to adapt to new global reality radically different from the heyday of globalization, when major importing countries were neutral about foreign manufacturers. |
| Keywords: | electric vehicles; EVs; batteries; secondary batteries; Inflation Reduction Act; IRA; la loi industrie verte; France; subsidies; EV subsidies; non-tariff barriers; NTBs; protectionism; economic nationalism; economic security; reshoring; France; Korea |
| JEL: | H23 H25 K32 L60 L62 Q56 Q58 |
| Date: | 2023–09–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2023_016&r=ene |
| By: | Kirchem, Dana; Giberti, Matteo; Kaan Dereli, Recep; Kiviluoma, Juha; Lynch, Muireann Ã; Casey, Eoin |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp764&r=ene |
| By: | Sam Schulhofer-Wohl |
| Abstract: | Opening remarks by Sam Schulhofer-Wohl at the “Energy Finance and the Energy Transition” conference, organized by the Federal Reserve Bank of Dallas and University of Houston. |
| Keywords: | energy transition; finance |
| Date: | 2023–05–19 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddsp:97513&r=ene |
| By: | Charles F. Mason; Neil A. Wilmot |
| Abstract: | Transitioning the economy from one that relies on fossil fuels to one that emphasizes renewable energy sources will have important implications for the pattern of natural resource use. Such a transition depends on government policies. As elected politicians have an incentive to weigh the spatially heterogeneous costs and benefits on their constituents from taking political action, one might hope that particularly unusual climate events might provide an impetus to increased action. We undertake an analysis using a variety of data sources. We first investigate the stochastic process governing temperature anomalies allowing for “fat tails”, which can arise either from a “jump” diffusion process or a time-varying volatility process. Using the parameter estimates from this first stage, combined with demographic and socio-economic variables, we analyze features promoting support for policies addressing climate change. Several of the parameter estimates that capture fat tails in temperature anomalies play a statistically important relation. |
| Keywords: | climate policy, temperature anomalies, fat tails, politics |
| JEL: | Q20 D80 L15 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10815&r=ene |
| By: | Gilles Lepesant (GC (UMR_8504) - Géographie-cités - UP1 - Université Paris 1 Panthéon-Sorbonne - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - UPCité - Université Paris Cité, CMB - Centre Marc Bloch - MEAE - Ministère de l'Europe et des Affaires étrangères - Bundesministerium für Bildung und Forschung - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | energy, Germany, Industry |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-04009197&r=ene |
| By: | Estelle Cantillon; Aurélie Slechten |
| Abstract: | The main argument in favor of markets in environmental contexts is the same as in other contexts: their ability to promote efficient allocations and production. But environmental problems bring their own challenges: their underlying bio-physical processes - and the technologies to monitor them - constrain what is feasible or even desirable. This chapter illustrates the main design dimensions in environmental markets, the trade-offs involved and their impact on performance, through the lens of a regulated market for pollution rights (the EU emissions trading scheme) and a voluntary market for the provision of environmental services (the global market for carbon credits). While both markets eventually contribute to climate change mitigation, their organisation as a “pollution market”, for the former, and as a “provision market”, for second, means that different design considerations take precedence. Both markets also face challenges: volatile prices in the EU emissions scheme and low trust for voluntary carbon markets. We discuss how alternative design options could address those. |
| JEL: | D47 Q2 Q53 Q57 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31987&r=ene |
| By: | Evgeny Kuzmin; Maksim Vlasov; Wadim Strielkowski; Marina Faminskaya; Konstantin Kharchenko |
| Abstract: | This study examines the role of human capital investment in driving sustainable socio-economic growth within the energy industry. The fuel and energy sector undeniably forms the backbone of contemporary economies, supplying vital resources that underpin industrial activities, transportation, and broader societal operations. In the context of the global shift toward sustainability, it is crucial to focus not just on technological innovation but also on cultivating human capital within this sector. This is particularly relevant considering the recent shift towards green and renewable energy solutions. In this study, we utilize bibliometric analysis, drawing from a dataset of 1933 documents (represented by research papers, conference proceedings, and book chapters) indexed in the Web of Science (WoS) database. We conduct a network cluster analysis of the textual and bibliometric data using VOSViewer software. The findings stemming from our analysis indicate that investments in human capital are perceived as important in achieving long-term sustainable economic growth in the energy companies both in Russia and worldwide. In addition, it appears that the role of human capital in the energy sector is gaining more popularity both among Russian and international researchers and academics. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.06450&r=ene |
| By: | Aurélie Méjean (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Antonin Pottier (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CMB - Centre Marc Bloch - MEAE - Ministère de l'Europe et des Affaires étrangères - Bundesministerium für Bildung und Forschung - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - CNRS - Centre National de la Recherche Scientifique); Stéphane Zuber (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Marc Fleurbaey (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Climate policy is often described by economists as an intertemporal consumption trade-off: consume all you want today and face climate damages in the future, or sacrifice consumption today to implement costly climate policies that will bring future benefits through avoided climate damages. If one assumes enduring technological progress, a society that is more averse to intertemporal inequalities should postpone climate policies and let future, richer generations pay more. Growing evidence however suggests that the trade-off is more complex: abrupt, extreme, irreversible changes to the climate may cause discontinuities to socio-economic systems, possibly leading to a sharp decline of human population and consumption per capita. In this paper, we show that, when accounting for a very small risk of catastrophic climate change, it is optimal to pursue stringent climate policies to postpone the catastrophe. Our results conform with the well-known conclusion that tight carbon budgets are preferred when aversion towards inequalities between generations is low. However, by contrast with previous studies, we show that stringent policies are also optimal when inequality aversion is high. The non-monotonicity of the influence of inequality aversion is due to the fact that, for a given investment in abatement, a higher inequality aversion gives a smaller weight to avoided future non-catastrophic damages, but a larger weight to the catastrophic outcome. We also explore the role of population ethics, and show that the size of the optimal carbon budget decreases with the social preference for large populations, although this parameter plays almost no role at extreme levels of inequality aversion. Our result demonstrates that views from opposite sides of the ethical spectrum in terms of inequality aversion converge in terms of climate policy recommendations, warranting immediate climate action. |
| Keywords: | Climate change, Catastrophic risk, Equity Population, Climate-economy model |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-04158009&r=ene |
| By: | Clemence Landers (Center for Global Development); Karen Mathiasen (Center for Global Development); Samuel Matthews (Center for Global Development) |
| Abstract: | The climate agenda has been a dominant feature of World Bank reform efforts, with President Banga aiming to both mobilize new resources and increase the proportion of total funding for climate-related projects. The stakes are high: greenhouse gas (GHG) emissions in many borrowing countries are elevated and rising, dimming prospects for meeting the 2030 Paris Agreement target to limit warming to a 1.5 degrees Celsius increase. To date, stakeholders have focused on how to mobilize new funding for climate mitigation reflecting an emphasis on the supply side (e.g., financing) of the agenda. But there has been little analysis on the demand side (or project pipeline). The assumption is that more money will generate more demand. But this does not necessarily follow. In this paper, we discuss major factors that will influence demand for climate mitigation projects, especially from the largest emitters of greenhouse gases (e.g., China, India, Brazil, Indonesia, Mexico). Our assessment is that factors like World Bank borrowing costs and access to alternative sources of finance will likely limit demand absent financial incentives, which could prove costly and difficult to resource at the scale needed to have meaningful impact. We also see a risk that these incentives could be used inefficiently absent a rigorous analysis to identify where they could have the most impact and a robust framework for assessing results. |
| Date: | 2023–12–11 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:315&r=ene |
| By: | Benjamin Stephens (Instiglio); Sebastián Chaskel (Instiglio); Mariana Noguera (Instiglio); Maria del Mar Oyola (Instiglio); Lucía Pérez (Instiglio); Mateo Zárate (Instiglio) |
| Abstract: | As Dissanayake (2021) and Dissanayake and Camps (2022) have argued, pull financing is an underutilized tool with the potential to drive the development and adoption of critical technologies necessary to address the globe’s climate crisis. The paper builds the case further and provides tangible examples by presenting two case studies that illustrate how pull climate finance can be used to deliver urgently needed climate results and support development objectives across low- and middle-income countries. The case studies respond to two pressing issues contributing to the globe’s climate challenge: (1) the growing use of energy intensive residential air conditioning and (2) the common use of stubble burning agricultural practices. For both cases, we propose that an Advance Market Commitment (AMC), a form of pull finance, could be used as a promising tool to enable technology development and adoption, driving a market shift towards a new and cleaner equilibrium. In the case of cooling, we outline the potential of an AMC to drive a sustained shift in the Indian market by enabling the scale-up of cleaner cooling technologies, driving down their costs to ensure their future competitiveness. In the case of stubble burning, also focused on India, we show that an AMC could offer incentives for producers to innovate to drive short-run take-up of stubble burning alternatives, facilitating a sustained market shift to stubble burning alternatives in the medium-term. We find both cases hold promise to achieve substantial and cost-effective emission reductions, as well as important development benefits in the form of both economic and health outcomes—a finding which should justify significant investments. |
| Date: | 2022–11–23 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:278&r=ene |
| By: | Harrison Hong; Jeffrey D. Kubik; Edward P. Shore |
| Abstract: | Many US states have set ambitious renewable portfolio standards (RPS) that require utilities to switch from fossil fuels toward renewables. RPS increases the renewables capacity, bond issuance, maturity, and yield spreads of investor-owned utilities compared to municipal producers that are exempted from this climate policy. Contrary to stranded-asset concerns, the hit to overall firm financial health is moderate. Falling cost of renewables and passthrough of these costs to consumers mitigate the burden of RPS on firms. Using a Tobin’s q model, we show that, absent these mitigating factors, the impact of RPS on firm valuations would have been severe. |
| JEL: | G0 G18 G31 G35 H0 H23 H25 H41 Q42 Q50 Q54 Q56 Q58 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31960&r=ene |
| By: | Eren Aydin (University of Hamburg); Kathleen Kürschner Rauck (University of St.Gallen; Swiss Finance Institute) |
| Abstract: | We study the short-term effects of the 9-Euro-Ticket, a major German public transport subsidization program, on particulate matter (PM). Using hourly PM readings from pollution monitoring stations throughout Germany, provided by the German Federal Environmental Agency, we find declines in PM₁₀ and PM₂.₅ at core traffic stations, displaying differential effects of -0.44 µg/m³ and -0.41 µg/m³ relative to less frequented locations, which corresponds to approximately 2.8 % and 8.5 % of the current limit guidelines that the WHO suggests to mitigate adverse effects on human health. Pollution reductions materialize in regions with above-average public-transportation accessibility, are most pronounced during peak travel times on weekdays and in regions with above-average population density and larger car fleets, suggesting reductions in car usage sign responsible for our findings. This notion is supported by plausibility tests that employ NO₂ and SO₂ as outcomes. These insights into consequences of ticket-fare subsidization for air quality and potential causal pathways are of relevance for policymakers involved in transportation (infrastructure) planning to accommodate such directly incentivizing policy tools in the future. |
| Keywords: | Public transport subsidy, Air pollution, 9-Euro-Ticket, Germany |
| JEL: | R48 R41 Q53 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp23109&r=ene |
| By: | Laurent Franckx |
| Abstract: | In Belgium, the Law on Fiscal and Social Greening of Mobility of 25 November 2021 eliminates corporate tax deductibility for all company cars except those with zero CO2 emissions.  The main effect of the tax reform is an accelerated electrification of the company car fleet and an accelerated decline in CO2 emissions. Compared to the no-reform scenario, the reform leads to an increase in net tax revenues of about 1 billion euro on an annual basis. |
| Keywords: | Company car taxation, Fiscal reform, Car demand, CO2, Car fleet greening, Discrete choice modelling |
| JEL: | C25 H2 H3 Q58 R48 |
| Date: | 2022–10–12 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:202206&r=ene |
| By: | Guido Núñez-Mujica (Breakthrough Institute); Vijaya Ramachandran (Breakthrough Institute); Scott Morris (Center for Global Development) |
| Abstract: | The World Bank is one of the largest providers of development finance to poor countries. In recent years, it has been under immense public pressure, mostly from its richest shareholders, to expand its climate portfolio. We examine the World Bank’s climate portfolio at the project level for the period 2000-2022 and find that financing is skewed towards mitigation projects. These projects lack estimates of greenhouse gas (GHG) emissions reductions, and there is no standardized reporting on GHG estimates across the portfolio. Further, hundreds of projects tagged climate—many in poorer countries—appear to have little to do with climate change mitigation or adaptation. We recommend that projects labeled climate should be accompanied by a clear explanation of why they mitigate emissions (with estimates of GHG reductions) or how they help increase resilience to climate-related events. Likewise, the World Bank must do more to identify outputs and verify outcomes for climate projects. |
| Date: | 2023–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:296&r=ene |
| By: | David Molitor; Corey D. White |
| 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. |
| JEL: | I12 Q5 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31990&r=ene |
| By: | KIMURA Yosuke |
| Abstract: | As the risk of climate change has increased, companies have advanced their research and development in green transformation (GX) technologies. This paper utilizes the GX classification published by the Japan Patent Office to estimate the values of green and non-green innovation, and analyzes their impacts on firms' resource allocation and growth. This paper finds that (1) green innovation has higher value than non-green innovation on average, (2) non-green innovation measures at the firm level predict a future increase in sales, capital and labor, but green innovation measures do not have predictive power in terms of future variation of firm growth or resource allocation. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23086&r=ene |
| By: | BARRIOS Salvador (European Commission - JRC); PYCROFT Jonathan; STASIO Andrzej Leszek (European Commission - JRC); STOEHLKER Daniel (European Commission - JRC) |
| Abstract: | We assess the extent to which the $391bn of energy and climate tax provisions under the Inflation Reduction Act in the United States could lead to a potential reallocation of investment and production activities away from the European Union. The analysis is based on the JRC’s CORTAX multi-country, general equilibrium model in order to provide estimates of the potential impact of the IRA on main macroeconomic aggregates for the EU as a whole and the US. Our results suggest that, if the US had adopted the subsidies scheme unilaterally, the IRA provisions would have boosted investment in this country at the expense of investment in the EU. However, taking in to account available funding from various EU programmes that are planned under the current Multiannual Financial Framework and NextGenerationEU (e.g. from the Recovery and Resilience Facility), the simulation results suggest that EU green sectors would significantly increase their activity while the positive impact on the EU economy as a whole would be positive and noticeable. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202308&r=ene |
| By: | Phoebe Koundouri; Konstantinos Dellis; Angelos Plataniotis |
| Abstract: | This paper delves into the multifaceted impacts of climate change on Europe. It examines the immediate risks, including infrastructure damage and health crises, and explores the broader socio-economic consequences. The paper highlights Europe's strategic responses, such as the European Green Deal, and its efforts in pioneering innovative, sustainable solutions. Key initiatives like the Net-Zero Cities program and the role of Public-Private Partnerships are discussed, emphasizing the need for holistic, cross-sector collaboration. It also addresses the financial mechanisms and regulatory frameworks crucial for supporting the green transition. Ultimately, the paper underscores the EU's commitment to a sustainable, resilient future, balancing economic growth with environmental stewardship. |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2320&r=ene |
| By: | International Monetary Fund |
| Abstract: | Namibia has shown resilience to the negative shocks from the COVID-19 pandemic and Russia’s war in Ukraine. Output has recovered to the pre pandemic level, inflation has fallen below 6 percent, and expectations remain anchored. Official reserves, at 4.7 month of imports in September, exhibit adequacy consistent with the peg to the rand. Prospects are brightened with discovery of oil and gas reserves. At the same time, Namibia is poised to benefit from the global pivot to green energy through its signature Green Hydrogen Project. Meanwhile, the challenge of improving public sector efficiency and reducing the large wage bill, not only for the sake of preserving debt sustainability, but also for the Namibian people to benefit the most from these new developments, remains paramount. Elections are scheduled for 2024. |
| Date: | 2023–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/401&r=ene |
| By: | Jonathan Beynon (Center for Global Development) |
| Abstract: | The scale, source, and allocation of climate finance have been contentious aspects of the Paris Agreement and its implementation. Central to these are questions of “fair shares”: who might contribute what and whether the group of contributors should be expanded. New analysis presented here concludes that there is a case for nontraditional donors providing 20-30 percent of any total, with this finding robust to a variety of different measures of historical emissions, cut-off dates, and income. China, Russia, South Korea, Saudi Arabia, Taiwan, Poland, the United Arab Emirates, and Mexico consistently feature in the top 20. Developed countries, however, should continue to take primary responsibility, with the United States shouldering at least 40 percent of the burden in virtually all scenarios. The politics of climate finance will continue to be difficult, but it is hard to escape the conclusion that both the United States and China will need to provide more. |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:311&r=ene |
| By: | Laurent Franckx |
| Abstract: | We present a total cost of ownership (TCO) analysis per market segment and powertrain of new cars sold in Belgium. We differentiate our results between cars sold to private households and company cars. Even though the median TCO of electric cars is lower than the median TCO of conventional powertrains in several market segments, there is a significant overlap in the TCOs of different powertrains in each market segment. It is therefore important to consider the whole distribution of the TCO. |
| Keywords: | Electric vehicles |
| JEL: | H22 H23 L62 L92 R48 |
| Date: | 2023–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:fpb:wpaper:202305&r=ene |
| By: | AMORES Antonio F (European Commission - JRC); CHRISTL Michael; DE AGOSTINI Paola (European Commission - JRC); DE POLI Silvia; MAIER Sofia (European Commission - JRC) |
| Abstract: | The hike in energy prices across Europe in 2022 and 2023 led to significant government interventions. Several governments introduced ‘energy price cap’ measures to alleviate the increased burden on households’ expenditures. This paper presents an ex ante assessment of the expected distributional impact of the inflation surge and the cushioning effect of these price cap policies introduced in 2023 in Germany, the Netherlands and Austria. Our analysis combines macroforecasting techniques with microsimulation methods and shows that the inflationary shock of 2023 will more severely affect those households at the bottom of the income distribution. Our results also highlight that the price cap measures will only partly absorb the negative distributional consequences of the inflationary shock while it would completely offset the increase in energy poverty. Additionally, we show that simpler measures, such as lump-sum cash transfers, are more efficient (considering government's budgetary costs) in cushioning the inequality-increasing effects of inflation, especially when such measures are targeted. Price caps, on the other hand, are more efficient in reducing energy poverty, given the non-negligible incidence of energy poverty in middle-income groups. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:taxref:202311&r=ene |
| By: | Beata Cichocka (Center for Global Development); Ian Mitchel (Center for Global Development) |
| Abstract: | This paper identifies and explores a number of challenges in using international public climate finance effectively towards contributing to low-carbon and resilient growth in lower- and middle-income countries. We explore key quantitative and qualitative trends in the climate finance architecture, including predictability of disbursements, affordability and concessionality of funding, provider proliferation and project fragmentation, implementation via modalities supporting recipient ownership, and the degree to which climate-related interventions are evaluated. Our research considers these trends against globally agreed principles of development effectiveness, with the aim of improving understandings of both the common and the climate-specific challenges within development finance. Ultimately, we find that climate-related development finance faces a number of challenges relative to other official development flows, including significantly lower disbursement ratios, a higher share of finance provided through debt instruments—and a rising share of loans to lower-income countries assessed as being at high risk of debt distress, a faster pace in proliferation of providers and shrinking project sizes, and fewer efforts to systematically evaluate impacts of interventions. Each of these areas will need to be tackled by public climate finance providers to ensure that the available funding is used towards climate objectives effectively. These and other issues related to the quality of climate finance should also be considered during the design of the new quantitative climate finance target under the UNFCCC to ensure that the structure of the goal promotes accountability and increases recipients’ ability to trust in the climate finance architecture. |
| Date: | 2022–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:281&r=ene |
| By: | Di Bu (Macquarie University); Matti Keloharju (Aalto University; Research Institute of Industrial Economics; CEPR); Yin Liao (Macquarie University; Australian National University); Steven Ongena (University of Zurich; Swiss Finance Institute; KU Leuven; NTNU Business School; CEPR) |
| Abstract: | How do bankers treat green firms? Utilizing unique loan application and banker preference data from a mid-sized bank, we find that customer managers, serving as front-line bankers, provide more favorable recommendations for green firms, particularly when they hold strong green values. However, a minority of environmentally skeptical bankers counteract this trend. These brown managers fake green interests when their recommendations bear no weight, and conversely, diminish their endorsements to green firms when they do hold significance. Additionally, brown loan officers, acting as superiors to these managers, strive to offset positive green firm evaluations by downgrading them. |
| Keywords: | Green bank lending, customer managers, loan officers, values |
| JEL: | G21 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp23113&r=ene |
| By: | Saleh Ghobbe; Mahdi Nohekhan |
| Abstract: | The environmental conservation issue has led consumers to rethink the products they purchase. Nowadays, many consumers are willing to pay more for products that genuinely adhere to environmental standards to support the environment. Consequently, concepts like green marketing have gradually infiltrated marketing literature, making environmental considerations one of the most important activities for companies. Accordingly, this research investigates the impacts of green marketing strategy on perceived brand quality (case study: food exporting companies). The study population comprises 345 employees and managers from companies such as Kalleh, Solico, Pemina, Sorbon, Mac, Pol, and Casel. Using Cochran's formula, a sample of 182 individuals was randomly selected. This research is practical; the required data were collected through surveys and questionnaires. The findings indicate that (1) green marketing strategy has a significant positive effect on perceived brand quality, (2) green products have a significant positive effect on perceived brand quality, (3) green promotion has a significant positive effect on perceived brand quality, (4) green distribution has a significant positive effect on perceived brand quality, and (5) green pricing has a significant positive effect on perceived brand quality. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.15865&r=ene |
| By: | Luiz de Mello (Economics Department, OECD); Teresa Ter-Minassian (Fiscal Affairs Department, IMF) |
| Abstract: | This paper explores the role of subnational investments in climate change mitigation and adaptation, emphasizing the importance of subnational entities in driving climate action at the local level. We discuss financing options, including public funds and private sector engagement, as well as governance structures necessary for effective subnational climate action. We also highlight the need for multi-level governance, collaboration, and clear policy frameworks to support subnational entities in implementing climate change initiatives. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper2324&r=ene |
| By: | Nancy Lee (Center for Global Development); Valerie Laxton (World Resources Institute); Samuel Matthews (Center for Global Development) |
| Abstract: | If we could reinvent MDBs to respond to urgent development and climate needs and to benefit from 70 years of experience with the model, what would they look like? Many are focused on the scale of MDB finance. This paper focuses on how the model needs to change to effectively deploy more finance. A central question for the model is how country investment priorities are set. This paper advocates that countries should chart their own low-carbon climate resilient development and growth paths, with robust analytical support from MDBs that integrates climate and development challenges, including cross-border challenges, and helps countries set priorities for investments and policies. MDBs should work together as a coherent system to support one country-owned strategy, rather than individually creating their own separate strategies and policy conditions. This approach will help overcome fears by borrowing countries that rich shareholders are compelling them to abandon their own development priorities in favor of other countries’ climate priorities. It will also help break down the silos within and across MDBs that thwart collaboration and diminish their effectiveness. The country strategies should go deep rather than broad, aiming for transformative outcomes in a few priority sectors selected for their importance for achieving the country’s sustainable development and climate goals. Success should be measured based on achievement of targeted outcomes, not by the size of financial inputs. Governments, MDBs, and other development partners should all make finance and other commitments under the strategy and be held accountable for their performance. Governments that meet their policy and finance commitments should be assured of consistent, predictable budget support from MDBs, along with investment project and pay-for-results lending. Beyond their own lending, MDBs should focus on improving the terms of market borrowing for sustainable development, making more use of their guarantee and insurance products. And MDB boards should spend less time on individual project approvals and more on monitoring outcome progress at the country level and country contributions to cross-border goals. A second critical challenge is how to boost MDB performance in mobilizing private finance for climate and development goals. The paper advocates putting mobilization at the center of MDB institutional strategies, setting ambitious mobilization targets, and implementing institutional changes needed to achieve those targets. Two core changes are critical: (1) changing financial product offerings to better match instruments to private capital market gaps, which means less emphasis on senior loans and more deployment of subordinated financial products; and (2) focusing more on creating portfolios of sustainable finance assets to offer private investment opportunities at scale. Partnerships with institutional investors and more risk- tolerant investors are both essential to achieve scale and manage increased risk. |
| Date: | 2023–06–20 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:299&r=ene |
| By: | Nancy Lee (Center for Global Development); Clemence Landers (Center for Global Development); Samuel Matthews (Center for Global Development) |
| Abstract: | Our paper evaluates the climate financial intermediary funds (FIFs) which are one of the largest sources of multilateral grant and concessional finance for climate, especially for middle-income countries. Donors have contributed more than $50 billion to these funds. The World Bank acts as a trustee for twelve climate FIFs. In this paper, we focus on the three largest: the Global Environment Facility (GEF), Climate Investment Funds (CIF), and Green Climate Fund (GCF). Our findings reveal significant challenges at the systemic level and differing performance across FIFs. FIF funding is not allocated according to shared criteria measuring results and impact, nor are there consistent results and impact reporting standards. This makes it hard for donors to assess where best to put their scarce grant resources. Based on our analysis, we recommend consolidating funds in order to increase efficiency and impact; deploying more concessional funds at the climate finance portfolio (vs. transaction) level to achieve greater scale and leverage; avoiding the creation of new climate funds that would further fragment this system; and allocating FIF finance according to a shared set of criteria that maximizes mitigation and adaptation impact and impact per dollar of FIF funding. |
| Date: | 2023–03–14 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:287&r=ene |
| By: | Thierry Grosdidier (LEM3 - Laboratoire d'Etude des Microstructures et de Mécanique des Matériaux - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - Arts et Métiers Sciences et Technologies - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université); Antoine Guitton; Thomas Gries |
| Abstract: | Transition énergétique : les matériaux métalliques pour la filière hydrogène. Genèse d'un projet de club étudiants / chercheurs du programme ORION |
| Date: | 2023–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04326820&r=ene |
| By: | Tobias Schimanski (University of Zurich); Julia Bingler (University of Oxford); Camilla Hyslop (University of Oxford); Mathias Kraus (University of Erlangen); Markus Leippold (University of Zurich; Swiss Finance Institute) |
| Abstract: | Public and private actors struggle to assess the vast amounts of information about sustainability commitments made by various institutions. To address this problem, we create a novel tool for automatically detecting corporate, national, and regional net zero and reduction targets in three steps. First, we introduce an expert-annotated data set with 3.5K text samples. Second, we train and release ClimateBERT-NetZero, a natural language classifier to detect whether a text contains a net zero or reduction target. Third, we showcase its analysis potential with two use cases: We first demonstrate how ClimateBERT-NetZero can be combined with conventional question-answering (Q&A) models to analyze the ambitions displayed in net zero and reduction targets. Furthermore, we employ the ClimateBERT-NetZero model on quarterly earning call transcripts and outline how communication patterns evolve over time. Our experiments demonstrate promising pathways for extracting and analyzing net zero and emission reduction targets at scale. |
| Keywords: | Net Zero Targets, ClimateBERT, Transformers, NLP |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp23110&r=ene |
| By: | Giannetti, Mariassunta; Jasova, Martina; Loumioti, Maria; Mendicino, Caterina |
| Abstract: | Using confidential information on banks’ portfolios, inaccessible to market participants, we show that banks that emphasize the environment in their disclosures extend a higher volume of credit to brown borrowers, without charging higher interest rates or shortening debt maturity. These results cannot be attributed to the financing of borrowers’ transition towards greener technologies and are robust to controlling for banks’ climate risk discussions. Examining the mechanisms behind the strategic disclosure choices, we highlight that banks are hesitant to sever ties with existing brown borrowers, especially if they exhibit financial underperformance. JEL Classification: G11, G15, G21 |
| Keywords: | credit exposure, financial institutions, strategic disclosure, sustainability reporting, zombie lending |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232882&r=ene |
| By: | Julien De Benedittis (Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, FAYOL-ENSMSE - Institut Henri Fayol - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], FAYOL-ENSMSE - Département Management responsable et innovation - ENSM ST-ETIENNE - Ecole Nationale Supérieure des Mines de St Etienne - Institut Henri Fayol); Nadine Dubruc (Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, FAYOL-ENSMSE - Institut Henri Fayol - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], FAYOL-ENSMSE - Département Management responsable et innovation - ENSM ST-ETIENNE - Ecole Nationale Supérieure des Mines de St Etienne - Institut Henri Fayol); Michelle Mongo (Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, FAYOL-ENSMSE - Institut Henri Fayol - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], FAYOL-ENSMSE - Département Management responsable et innovation - ENSM ST-ETIENNE - Ecole Nationale Supérieure des Mines de St Etienne - Institut Henri Fayol); Sophie Peillon (FAYOL-ENSMSE - Département Management responsable et innovation - ENSM ST-ETIENNE - Ecole Nationale Supérieure des Mines de St Etienne - Institut Henri Fayol, Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], COACTIS - COnception de l'ACTIon en Situation - UL2 - Université Lumière - Lyon 2 - UJM - Université Jean Monnet - Saint-Étienne, FAYOL-ENSMSE - Institut Henri Fayol - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris]) |
| Abstract: | Dans un monde de plus en plus connecté, où les entreprises s'appuient sur la technologie pour prospérer, la question de la sobriété numérique émerge comme un impératif incontournable. Les avancées technologiques ont révolutionné nos modes de travail, de communication et de consommation, mais elles ont également entraîné une dépendance croissante envers les ressources numériques dont l'empreinte environnementale est grandissante. Face à ces défis, certaines entreprises réfléchissent sérieusement à leur impact et ont pris des mesures concrètes pour réduire leur empreinte carbone numérique. La sobriété numérique, c'est l'art d'utiliser la technologie de manière responsable, en minimisant sa consommation énergétique, en réduisant la production de déchets électroniques et en préservant nos ressources naturelles. Ce guide a été conçu pour aider chefs et cadres d'entreprises à naviguer dans cet environnement numérique complexe tout en adoptant des pratiques plus durables. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:emse-04322652&r=ene |
| By: | Olivia Bory Devisme (ENERGY Lab - Energy Lab - UR - Université de La Réunion); Pierre-Olivier Lucas de Peslouan (ENERGY Lab - Energy Lab - UR - Université de La Réunion); Frédéric Alicalapa (ENERGY Lab - Energy Lab - UR - Université de La Réunion); Denis Genon-Catalot (LCIS - Laboratoire de Conception et d'Intégration des Systèmes - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | Installation d'un nanoréseau CC (Courant Continu) pour l'étude des gains énergétiques dans le secteur tertiaire à La Réunion |
| Date: | 2023–06–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04326680&r=ene |
| By: | Torijano, Eugenio |
| Abstract: | En este documento se presenta información relevante de la industria eléctrica de los ocho países que conforman el Sistema de la Integración Centroamericana (SICA). En esta publicación se consideran dos grupos de países: i) los seis países que integran el Mercado Eléctrico Regional de América Central se incluyen en la sigla SIEPAC (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua y Panamá), y ii) en la sigla SICA se incluyen los ocho países que conforman el organismo de integración referido (los seis ya mencionados, SIEPAC, más Belice y la República Dominicana). Se presentan cuadros regionales y nacionales con datos estadísticos de la industria eléctrica, la mayor parte actualizados a 2022, que muestran los resultados de los segmentos de producción y distribución de electricidad en los dos mercados relevantes (mercados mayoristas y mercados regulados) y de las transacciones regionales (para los países del SIEPAC) y binacionales (para las transacciones de electricidad entre México, Belice y Guatemala). En la sección de hechos relevantes se comentan las principales tendencias en el comportamiento de la oferta y el consumo de electricidad, y se describen las principales adiciones de nuevas plantas generadoras que iniciaron operaciones. |
| Date: | 2023–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:68763&r=ene |