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on Energy Economics |
| By: | Majid Hashemi; Glenn Jenkins (Queen's University); Frank Milne (Queen's University) |
| Abstract: | This study develops a generalized evaluation framework that can be used to quantify the financial, economic, stakeholder, and environmental impacts of renewable energy support programs. The application of this framework is demonstrated by evaluating the Feed-In Tariff (FIT) program for solar distributed energy resources (DER) in Ontario, Canada. Our analysis reveals that Ontario’s FIT program has successfully promoted the adoption of solar DER across communities. However, the program has caused inequitable societal outcomes through a crosssubsidization with a present value of 9 CAD billion, paid for by the electricity consumer base for the benefit of only the 0.06 percent of electricity consumers who could install solar systems. The cost imposed on the Canadian economy ranges from 2.86 to 5.37 CAD billion, depending on the discount rate applied. The sensitivity analysis results indicate that the burden of this program on the Canadian economy would have been reduced by 50 percent if the program had been delayed and implemented in 2016 instead of 2010 due to the declining trend in solar system investment costs. The lessons from this analysis provide insights for designing future environmental and emission reduction policies. |
| Keywords: | Renewable Energy Subsidy, Distributed Energy Resources, Feed-in Tariff, Stakeholder Analysis, Benefit-cost Analysis, Ontario, Canada |
| JEL: | H23 O13 Q42 Q48 |
| Date: | 2023–08 |
| URL: | http://d.repec.org/n?u=RePEc:qed:wpaper:1514&r=ene |
| By: | KANG, Munsu (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | While energy accessibility in East Africa is still low, global agenda on energy transition brings African countries moving towards increasing green energy supply such as solar and wind power. East African countries are cooperating in the energy sector to improve energy access and power generation through EAC Vision 2050 and EAPP. One of the key message of those policies is that diversifying energy mix by increasing the share of green energy is essential. For this reason, Korea and East African countries could cooperate on improving policy environment on the energy sector, scaling up green energy projects, diversifying the energy cooperation, and promoting private sector to enter East African market. |
| Keywords: | Green energy; East Africa; Energy cooperation |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2023_041&r=ene |
| By: | Spandagos, Constantine; Tovar Reaños, Miguel; Lynch, Muireann à |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp762&r=ene |
| By: | Hoai Son Nguyen (NEU - National Economics University [Hanoï, Vietnam]); Minh Ha-Duong (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); Xuân Tháng Nguyen (NEU - National Economics University [Hanoï, Vietnam]) |
| Abstract: | The study retests the economy of scale in electricity consumption under the tiered electricity pricing conditions with panel data constructed from the Vietnam Household Living Standards Survey (VHLSS) for the years 2014, 2016, and 2018. Using instrumental variables developed by McFadden, Puig, and Kirschner (1977) to represent tiered prices, the study has separated the impact of tiered pricing to estimate the economy of scale in electricity consumption of households in Vietnam from 2014 to 2018. The results show that even under the influence of tiered pricing, households still exhibit economies of scale in electricity consumption. With each additional member, the per capita electricity consumption of each household decreases by 5.36 kWh/month, equivalent to a 15% reduction. This result has a small deviation compared to the results estimated in other Asian countries such as China. Summary for policymakers: This study examines how of electricity consumption by Vietnamese households between 2014 and 2018 depends on households size, income and other factors. It utilizes instrumental variables to adjust for the effects of increasing block tariffs. The result confirm the existence of economies of scale in electricity use among Vietnamese households: each additional member in the household decreases the per capita power consumption by 15%. Results imply that the observed social trend towards smaller households may contributes to the electricity demand increase. Indeed, between 2014 and 2020, the average household size in Vietnam decreased, correlating with a large increase in per capita electricity consumption. However, the study finds that diseconomies of scale only explain a small part (5%) of the households electricity demand increase. The majority of the increase is due to other factors, such as the number of households, their income growth, and urbanization. |
| Abstract: | Nghiên cứu kiểm định lại tính kinh tế theo quy mô trong tiêu dùng điện dưới điều kiện giá điện bậc thang với số liệu mảng được xây dựng từ Khảo sát mức sống dân cư (VHLSS) của ba năm 2014, 2016 và 2018. Sử dụng biến công cụ do McFadden, Puig và Kirschner (1977) phát triển để đại diện cho giá bậc thang, nghiên cứu đã phân tách được tác động của giá bậc thang để ước tính được tính kinh tế theo quy mô trong tiêu dùng điện của các hộ gia đình tại Việt Nam giai đoạn từ năm 2014 đến năm 2018. Kết quả cho thấy, ngay cả dưới ảnh hưởng của giá bậc thang, các hộ gia đình vẫn có tính kinh tế theo quy mô trong tiêu dùng điện. Với mỗi thành viên tăng thêm, lượng điện tiêu thụ trên đầu người của mỗi hộ sẽ giảm đi 5, 36 kWh/tháng, tương đương với lượng giảm 15%. Kết quả này có sai biệt không lớn với các kết quả đã được ước lượng tại các nước châu Á khác như Trung Quốc. |
| Keywords: | Economy of scale, electricity demand function, tiered pricing, Vietnamese households. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04332519&r=ene |
| By: | Palencia González; Tovar Reaños, Miguel; Labeaga Azcona, Jose Maria |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp765&r=ene |
| By: | Wadim Strielkowski; Larisa Gorina; Elena Korneeva; Olga Kovaleva |
| Abstract: | This paper explores the role of energy-saving technologies and energy efficiency in the post-COVID era. The pandemic meant major rethinking of the entrenched patterns in energy saving and efficiency. It also provided opportunities for reevaluating energy consumption for households and industries. In addition, it highlighted the importance of employing digital tools and technologies in energy networks and smart grids (e.g. Internet of Energy (IoE), peer-to-peer (P2P) prosumer networks, or the AI-powered autonomous power systems (APS)). In addition, the pandemic added novel legal aspects to the energy efficiency and energy saving and enhanced inter-national collaborations and partnerships. The paper highlights the importance of energy efficiency measures and examines various technologies that can contribute to a sustainable and resilient energy future. Using the bibliometric network analysis of 12960 publications indexed in Web of Science databases, it demonstrates the potential benefits and challenges associated with implementing energy-saving technologies and autonomic power systems in a post-COVID world. Our findings emphasize the need for robust policies, technological advancements, and public engagement to foster energy efficiency and mitigate the environmental impacts of energy consumption. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.11711&r=ene |
| By: | Yoosoon Chang (Department of Economics, Indiana University); Yongok Choi (School of Economics, Chung-Ang University); Chang Sik Kim (Department of Economics, Sungkyunkwan University); J. Isaac Miller (Department of Economics, University of Missouri); Joon Y. Park (Department of Economics, Indiana University) |
| Abstract: | We employ a semiparametric functional coefficient panel approach to allow an economic relationship of interest to have both country-specific heterogeneity and a common component that may be nonlinear in the covariate and may vary over time. Surfaces of the common component of coefficients and partial derivatives (elasticities) are estimated and then decomposed by functional principal components, and we introduce a bootstrap-based procedure for inference on the loadings of the functional principal components. Applying this approach to national energy-GDP elasticities, we find that elasticities are driven by common components that are distinct across two groups of countries yet have leading functional principal components that share similarities. The groups roughly correspond to OECD and non-OECD countries, but we utilize a novel methodology to regroup countries based on common energy consumption patterns to minimize root mean squared error within groups. The common component of the group containing more developed countries has an additional functional principal component that decreases the elasticity of the wealthiest countries in recent decades. |
| Keywords: | energy consumption, energy-GDP elasticity, partially linear semiparametric panel model, functional coefficient panel model |
| JEL: | C14 C23 C51 Q43 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:umc:wpaper:2401&r=ene |
| By: | Fouquet, Roger |
| Abstract: | To better understand the processes of digitalisation, dematerialisation and decarbonisation, this paper examines the relationship between energy and information for the global economy since 1850. It presents the long run trends in energy intensity and communication intensity, as a proxy for total information intensity. The evidence suggests that, relative to GDP, global economic production has been reducing energy and increasing information use since 1913. The analysis indicates that it initially required little information to replace energy in production and that the ability to substitute away from energy and towards information has been declining. The result implies that the global economy is now reducing energy and increasing information at a substitution rate of 0.2 kB per kWh of conserved energy or 0.8 GB per tonne of carbon dioxide mitigated. As the price ratio of energy to information is currently higher than this marginal rate of substitution, there are incentives to further substitute information for energy. However, one conclusion is that (without the long run escalation of carbon prices) substitution away from energy and towards information is likely to cease within the next few decades and, beyond that, digitalisation will play a declining role in the decarbonisation process. |
| Keywords: | ES/R009708/1; EP/R035288/1 |
| JEL: | J1 |
| Date: | 2023–12–13 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121063&r=ene |
| By: | Fangzhi Wang; Hua Liao; Richard S. J. Tol |
| Abstract: | We investigate optimal carbon abatement in a dynamic general equilibrium climate-economy model with endogenous structural change. By differentiating the production of investment from consumption, we show that social cost of carbon can be conceived as a reduction in physical capital. In addition, we distinguish two final sectors in terms of productivity growth and climate vulnerability. We theoretically show that heterogeneous climate vulnerability results in a climate-induced version of Baumol's cost disease. Further, if climate-vulnerable sectors have high (low) productivity growth, climate impact can either ameliorate (aggravate) the Baumol's cost disease, call for less (more) stringent climate policy. We conclude that carbon abatement should not only factor in unpriced climate capital, but also be tailored to Baumol's cost and climate diseases. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.00160&r=ene |
| By: | Vijaya Ramachandran (Breakthrough Institute; Center for Global Development); Arthur Baker (Development Innovation Lab, University of Chicago) |
| Abstract: | The push for the World Bank and others to link their investments to addressing climate concerns stems from a fear that, unless developing countries take action to decarbonize now, their economic growth will lead to vast emissions that will derail all global efforts to limit climate change. This approach, which treats low- and middle-income countries as a monolith, is unhelpful to the conversation about climate change. To understand better where emissions are concentrated and how to address them, we projected carbon dioxide emissions to 2035—the point at which observers believe they will level off in most countries due to technological advances and accumulating wealth—under some simple assumptions. Emissions from the world’s poorest 64 countries, those which get IDA loans, will remain very low for decades to come, even if their economies grow rapidly and without action to reduce emissions. Pressuring low- and lower-middle-income countries to replace plans for gas power with solar or wind energy will have limited climate benefits compared to replacing coal generation in richer countries. It is just more efficient—and just—to focus on climate mitigation where emissions are high, and on poverty reduction where poverty is high. And given that there is no sign of an increase in aid spending, especially in the poorest countries, rich countries must not cannibalize development aid or reinvent the development finance architecture |
| Date: | 2022–06–08 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:263&r=ene |
| By: | J. Andrés; J.E. Boscá; R. Doménech; J. Ferri |
| Abstract: | We assess the macroeconomic and welfare implications of carbon mitigation strategies using an environmental Dynamic General Equilibrium model. The economy uses energy from both green renewable technologies and fossil fuels. We set an emission reduction target in line with the Paris Agreement and analyze the welfare and macroeconomic impacts of various strategies, including (1) raising the domestic price of fossil fuels, (2) implementing a subsidy on green investment funded through lump-sum taxes, (3) imposing taxes on emissions with rebates to households, and (4) utilizing emission taxes to support green investment. Our model provides a framework for evaluating the welfare consequences of various carbon mitigation strategies, emphasizing the need to balance the short and long-term effects of incentives for investment and innovation in green technologies, as well as taxes and other policies designed to reduce carbon emissions. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaeee:eee2024-01&r=ene |
| By: | Mohammad Arief Rajendra (Department of Economics, Faculty of Economics & Business, Universitas Gadjah Mada); Sekar Utami Setiastuti (Department of Economics, Faculty of Economics and Business, Universitas Gadjah Mada) |
| Abstract: | This study examines the relationship between climate policy uncertainty and the demand for renewable energy in the United States. The primary findings suggest that there is a nonlinear threshold effect resulting from climate policy uncertainty, as measured by the Climate Policy Uncertainty Index (CPU) and the Environmental Policy Uncertainty Index (ENVPU), on renewable energy demand (REC). The findings indicate a negative relationship between the CPU and the REC when the CPU is beyond a specific threshold. This suggests that economic agents adopt a cautious approach, sometimes referred to as the "wait and see" policy, in their renewable energy allocation. In essence, customers may opt to reduce their utilization of renewable energy in favor of alternate sources as a means to circumvent the investment risks associated with renewable alternatives. |
| Keywords: | Climate policy uncertainty, Renewable energy demand, Crude oil price |
| JEL: | C24 Q28 Q43 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:gme:wpaper:202312012&r=ene |
| By: | Alexander Roth |
| Abstract: | The decarbonization of buildings requires the phase-out of fossil fuel heating systems. Heat pumps are considered a crucial technology to supply a substantial part of heating energy for buildings. Yet, their introduction is not without challenges, as heat pumps generate additional electricity demand as well as peak loads. To better understand these challenges, an ambitious simultaneous heat pump rollout in several central European countries with an hourly-resolved capacity expansion model of the power sector is studied. I assess the structure of hours and periods of peak heat demands and their concurrence with hours and periods of peak residual load. In a 2030 scenario, I find that meeting 25% of total heat demand in buildings with heat pumps would be covered best with additional wind power generation capacities. I also identify the important role of small thermal energy storage that could reduce the need for additional firm generation capacity. Due to the co-occurrence of heat demand, interconnection between countries does not substantially reduce the additional generation capacities needed for heat pump deployment. Based on six different weather years, my analysis cautions against relying on results based on a single weather year. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.06589&r=ene |
| By: | Pradhananga , Manisha (Asian Development Bank); Raitzer , David (Asian Development Bank); Sebastian-Samaniego, Iva (Asian Development Bank); Naval, Daryll (Asian Development Bank) |
| Abstract: | Unless developing Asia decarbonizes its development, global warming is unlikely to stay below the internationally agreed limit of 2°C above preindustrial levels. Integrated assessment modeling offers insights into how a low carbon transition can be achieved. The Sixth Assessment Report of the Intergovernmental Panel on Climate Change incorporated an ambitious model intercomparison effort that compiled thousands of model-scenario combinations to consider low carbon development pathways. This paper explores the evidence within that database to consider decarbonization pathways for developing Asia. Overall, a comparison of the major models finds strong consistency in the transformation of the energy sector required to achieve Paris Agreement goals. This includes a rapid decline in the share of coal—a mainstay of the power sector in developing Asia—and a substantial rise in renewable energy. The cost of the transition can be relatively low if mitigation efforts are efficient, as assumed in the models. |
| Keywords: | climate change; integrated assessment model; mitigation; energy; Paris Agreement; NDCs |
| JEL: | C61 D58 Q40 Q54 |
| Date: | 2023–12–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0711&r=ene |
| By: | Forshaw, Rachel; Kharadi, Natalya; McLaughlin, Eoin |
| Abstract: | Air pollution is a global public health threat, responsible for more deaths annually than conventional lifestyle risk factors. While the link between particulate pollution and cardiovascular disease is well-established, evidence for gaseous pollutants remains limited. This study estimates the long-term population effects of a gaseous pollutant - SO2 - from 1901 to 1975 in a panel comprising 29 countries distributed globally, contributing to the under-explored literature on its cardiovascular disease mortality impact. Across a comprehensive range of empirical specifications, we observe a robust economically and statistically significant rise in cardiovascular disease mortality for an increase in SO2 emissions. We also contribute to the literature on economic growth and long-term health outcomes. Our historical perspective aligns with the call for more research on the effects of air pollution in developing nations. We highlight a complex trade-off: greater SO2 emissions increases cardiovascular disease mortality but leads to short-term regional cooling and reduced global warming and as such its abatement may contribute to future climate-related deaths. |
| Keywords: | Air pollution, Cardiovascular disease mortality, Economic growth, Environmental Kuznets Curve, Global public health, SO2 emissions |
| JEL: | I15 N30 N50 Q53 Q54 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hwuaef:280754&r=ene |
| By: | Gustavo Ferro; Carlos A. Romero; María Priscila Ramos |
| Abstract: | A smart grid is the superposition of one physical electricity network on an information system. “Digitalization” (the growing application of information and communication technologies across the economy) enables electricity to break away from exclusive and centralized generation, opening it up to the increased integration of small-scale renewable sources in distribution networks. Digitalization also facilitates two-way communications between clients and providers, transforming them -progressively into “prosumers”. This suggests a new electricity system requiring changes in regulatory and technical norms. Transmission improves, losses decrease, renewables can be better integrated, and demand peaks can be smoothed. On the other hand, there is an important need for investments in smart meters, and IT technology, as well as concerns over the correct treatment of clients’ data. The massive introduction of dynamic tariffs is a consequence of smart grid development. |
| Keywords: | Smart Grids; Renewable Energy Sources; Electricity markets |
| JEL: | C14 Q42 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:cem:doctra:859&r=ene |
| By: | Camille Megy (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Abstract: | Alongside our baseline scenario without PTG, we define a series of alternative scenarios that represent various PTGownership structures. |
| Date: | 2022–12–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04325987&r=ene |
| By: | Marco Gortan; Lorenzo Testa; Giorgio Fagiolo; Francesco Lamperti |
| Abstract: | Although high-resolution gridded climate variables are provided by multiple sources, the need for country and region-specific climate data weighted by indicators of economic activity is becoming increasingly common in environmental and economic research. We process available information from different climate data sources to provide spatially aggregated data with global coverage for both countries (GADM0 resolution) and regions (GADM1 resolution) and for a variety of climate indicators (average precipitations, average temperatures, average SPEI). We weigh gridded climate data by population density or by night light intensity -- both proxies of economic activity -- before aggregation. Climate variables are measured daily, monthly, and annually, covering (depending on the data source) a time window from 1900 (at the earliest) to 2023. We pipeline all the preprocessing procedures in a unified framework, which we share in the open-access Weighted Climate Data Repository web app. Finally, we validate our data through a systematic comparison with those employed in leading climate impact studies. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.05971&r=ene |
| By: | Carnazza, Giovanni; Renström, Thomas I.; Spataro, Luca |
| Abstract: | The EU has embarked on multiple initiatives reflecting its commitment to environmental enhancement and sustainable transitions. Notable among these are the European Green Deal and the NextGenerationEU recovery plan, both pivotal in fostering eco-friendly policies and sustainable practices within the region. Conversely, the fiscal rules within the EU, designed to manage budgetary deficits and debt-to-GDP ratios, may pose challenges to the implementation of fiscal measures targeted at achieving environmental quality objectives. These regulatory constraints potentially curtail the fiscal space available for policies aligned with the environmental goals set forth by the EU. To address this issue, using a panel of 27 European member countries observed annually from 1995 to 2021, we investigate the impact of two different indicators on the overall carbon intensity: on the one hand, the implicit tax rate on energy reduces environmental pollution; on the other hand, an increase in the stringency of the European fiscal framework and/or the debt-to-GDP ratio increase carbon intensity. From a policy point of view, our outcomes stress the importance of shaping national and European regulations to foster more sustainable environmental development. |
| Keywords: | Environmental Economics and Policy, Public Economics, Research Methods/ Statistical Methods |
| Date: | 2023–12–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:339126&r=ene |
| By: | Moro, Alessandro; Zaghini, Andrea |
| Abstract: | We propose a model with mean-variance foreign investors who exhibit a convex disutility associated to brown bond holdings. The model predicts that bond green premia should be smaller in economies with a closer financial account and highly volatile exchange rates. This happens because foreign intermediaries invest relatively less in such economies, and this lowers the marginal disutility of investing in polluting activities. We find strong empirical evidence in favor of this hypothesis using a global bond market dataset. Exchange rate volatility and financial account openness are thus able to explain the higher financing costs of green projects in emerging markets relative to advanced economies, especially when green bonds are denominated in local currency: a disadvantage that we can call the "green sin" of emerging economies. |
| Keywords: | Green bonds, Greenium, Exchange rate volatility, Financial openness, Original sin |
| JEL: | F21 F30 F31 G11 G12 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:cfswop:280929&r=ene |
| By: | Anna Alberini (AREC, University of Maryland, College Park); Levan Bezhanishvili (Institute of Economic Studies at Faculty of Social Sciences, Prague, Czech Republic.); Milan Scasny (Charles University, Environment Center, and Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague, Czech Republic.) |
| Abstract: | During the Covid-19 pandemic, the governments of many countries adopted measures to support the population during the lockdowns and periods of reduced economic activity. In the Republic of Georgia, in April 2020 the government announced that it would pay the electricity bills of residential customers in April and May 2020, effectively making electricity free, as long as usage would not exceed 200 kWh/month. In August 2020, the government announced that the policy would be in force again in November and December 2020, and January and February 2021. We examine meter readings from the entire country outside of the Tbilisi city limits, finding that the average household increased usage by some 5% above and beyond their normal. This figure however masks considerable heterogeneity in the effects of the policy across urban, rural, and "high mountain" status areas. We examine the possibility that awareness of the policy might decrease with the distance from the capital Tbilisi, but find little evidence of "distance decay" effect. We find that, as suggested by economic theory, in the months when the policy is in place low-volume consumers increase their electricity usage and high-volume consumers decrease it in an effort to make the 200 kWh mark. Assuming that the increase in electricity demand was met with imports and domestic generation by gas-fired power plants, our models predict that in our sample CO2 emissions increased by 2, 028 tons during the "free electricity months, " despite an actual reduction among the residents of large cities. |
| Keywords: | residential electricity consumption; increasing block rate (IBR) tariffs; salience; free electricity |
| JEL: | D12 Q41 Q48 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2023_37&r=ene |
| By: | Christian P. Fries; Lennart Quante |
| Abstract: | Today's decisions on climate change mitigation affect the damage that future generations will bear. Discounting future benefits and costs of climate change mitigation is one of the most important components of assessing efficient climate mitigation pathways. We extend the DICE model with stochastic discount rates to reflect the dynamic nature of discount rates. Stochastic rates give rise to a mitigation strategy, resulting in all model quantities becoming stochastic. We show that the classical calibration of the DICE model induces intergenerational inequality: future generations have to bear higher costs relative to GDP and that this effect worsens under stochastic discount rates. Accounting for additional financing risks, we investigate two modifications of DICE. We find that allowing financing of abatement costs and considering non-linear financing effects for large damages improves intergenerational effort sharing. We propose a modified optimisation to keep costs below 3\% of GDP, resulting in more equal efforts between generations. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.07614&r=ene |
| By: | Marouane Nakhcha (laboratoire de recherche en sciences de gestion des organisations - ENCG Kenitra); Mamdouh Tlaty (laboratoire de recherche en sciences de gestion des organisations - ENCG Kenitra) |
| Abstract: | This article explores the complex interconnection between digitization, green finance, and economic sustainability, highlighting the transformative potential of digitization for a greener economy. Adopting a rigorous research methodology, we examine the foundations of digitization and green finance, identifying the challenges and opportunities inherent in their convergence. The principles and objectives of green finance, inspired by thinkers such as Zadek and Elkington, are confronted with the advances of digitization. Our theoretical analysis reveals complex synergies between digitization and green finance, highlighting their implications for transparency, market efficiency, impact measurement, investment diversification, and innovation. However, these synergies pose challenges such as data security and regulation, requiring a responsible approach. In examining the challenges of digitizing green finance, we highlight the contributions of renowned researchers such as Rob Bauer, Andreas G. F. Hoepner, and Ioannis Oikonomou. Data privacy and regulatory challenges emerge as significant obstacles to a successful transition to greener, more sustainable finance. Our four-step methodology offers a balanced analysis of technological and regulatory challenges, exploring theoretical perspectives and potential solutions. Experts such as Rob Bauer, Andreas G. F. Hoepner, Ioannis Oikonomou, and Carolyn M. Wilkins offer innovative strategies for overcoming these obstacles, emphasizing the importance of collaboration and proactive regulation. Our article contributes to understanding the relationship between digitization, green finance, and economic sustainability. Although the transition to green digital finance presents challenges, the theoretical recommendations offer promising avenues for a more responsible and innovative economy. Our analysis encourages ongoing reflection and determined action to build a more sustainable future. |
| Keywords: | Innovation, Green Finance, Economic Sustainability, Technological Challenges, Catalyst, Sustainable development |
| Date: | 2023–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04333883&r=ene |
| By: | Alatorre, José Eduardo; Lalanne, Álvaro; Lavalleja, Martín |
| Abstract: | Este documento tiene como objetivo proporcionar estimaciones de las vulnerabilidades macroeconómicas de los países de América Latina a la transición baja en carbono. A partir de la metodología desarrollada por Espagne et al. (2021) para evaluar la exposición externa, fiscal y socioeconómica de los países y, considerando su sensibilidad a la transición y su capacidad para adaptar su estructura productiva, se estudia las vulnerabilidades y riesgos de los países en estas diferentes dimensiones. |
| Date: | 2023–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col032:68761&r=ene |
| By: | Ramji, Aditya; Dayemo, Kristi |
| Keywords: | Engineering, Social and Behavioral Sciences, supply chain, lithium-ion batteries, graphite, electric vehicles |
| Date: | 2024–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt0q83t5fd&r=ene |
| By: | Alain Bensoussan; Benoit Chevalier-Roignant (EM - emlyon business school); Alejandro Rivera |
| Abstract: | A renewable energy site can expand its power generation capacity by an endogenous amount, but may also want to shut down to save on fixed operating costs and interest payments if the market prospects deteriorate. We model such circumstances and derive managerial implications that help us explain real-world conundrums, illustrating the intricate interactions between the operational decision to build up capacity and the financial decision to exit an industry. Shutting down may be delayed in the hope of expanding capacity upon recovery; expansion may also be delayed in the presence of a valuable exit option. Numerical extensions provide further managerial insights. In particular, the presence of fixed or proportional financing costs may lead the firm to delay its expansion decision, but the scale of investment will only be affected by proportional costs. If herding behavior causes equipment prices to increase (resp., decrease) when electricity prices are high (resp., low), managers should invest earlier (resp., later) and more (resp., less) while equipment prices are low (resp., high). Furthermore, although volume swings (due to capacity decommissionings and expansions) are marked in a homogeneous industry (when the default and expansion thresholds are reached), heterogeneity in the population of wind farms smooths out such effects. |
| Date: | 2022–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04325553&r=ene |
| By: | Preksha Jain; Rupayan Pal (Indira Gandhi Institute of Development Research) |
| Abstract: | This paper explores the possibility of designing environmental regulation that ensures `zero emission', by promoting non-polluting `green' technology adoption by firms, without creating new rooms for corruption. It demonstrates that it is feasible to implement the `target equilibrium', in which there is `no emission and no corruption', through environmental regulation alone. It also characterizes the `target equilibrium' implementing `minimum environmental regulation', which corresponds to the least possible subsidy expenditure and the lowest possible tax burden on firms, in alternative scenarios. More interestingly, it shows that, in the presence of corruption possibilities, introduction of reputation enhancing non-monetary incentives for `green' technology adoption makes it harder to implement the target equilibrium'. It underscores that usefulness of status incentives to nudge firms' behaviour for environmental protection is rather limited. These are robust results. |
| Keywords: | Zero emission, Corruption, Minimum environmental regulation, Non-monetary status incentive, Brown tax, Green technology subsidy |
| JEL: | Q58 H23 Q52 D73 |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ind:igiwpp:2023-009&r=ene |
| By: | Raihan M. Ramadhan (Economic Research Institute for ASEAN and East Asia (ERIA)); Pyan A. Muchtar (Economic Research Institute for ASEAN and East Asia (ERIA)) |
| Abstract: | Despite facing global uncertainties, Indonesia has achieved macroeconomic stability, supported by strong responses in fiscal and monetary policy, as well as robust domestic supply chains. By using its natural resources and following the global trend of green industries, Indonesia aims to become a key player in the global renewable energy market. Sound infrastructure is one of the key requirements to attract high-profile investments, but Indonesia struggles with poor and unequal infrastructure. Cumbersome bureaucracy and restrictiveness towards services trade also hinder the nation from reaching its potential. Strengthening physical, human, and institutional infrastructure will help the country secure investments and boost trade. |
| Date: | 2023–01–10 |
| URL: | http://d.repec.org/n?u=RePEc:era:wpaper:pb-2022-07&r=ene |
| By: | G. Nocera (Audencia Business School); M. Bedendo; L. Siming |
| Abstract: | Banks are expected to play a key role in assisting the real economy with the green transition process. One of the tools used for this purpose is the issuance of green bonds. We analyze the characteristics of banks that issue green bonds to understand: (i) which banks are more likely to resort to these funding instruments, and (ii) if the issuance of green bonds leads to an improvement in a bank's environmental footprint. We find that large banks and banks that had already publicly expressed their support for a green transition are more likely to issue green bonds. Conditional on being a green bond issuer, smaller banks tend to resort to green bonds in a more persistent manner and for relatively larger amounts, while larger banks issue green bonds on a more occasional basis and for smaller amounts. This heterogeneity is also reflected in our findings that only banks that issue green bonds more intensively improve their emissions and reduce lending to polluting sectors, thus contributing to the decarbonization of the financial sector. |
| Keywords: | green bonds, decarbonization, sustainable finance, Green banking |
| Date: | 2022–12–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04318899&r=ene |
| By: | Valentin Bellassen (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Dès le 1 er janvier 2024, un score environnemental devrait apparaître sur les produits alimentaires (et textiles), sorte de « Nutriscore » de l'écologie. Or, depuis plusieurs mois, la bataille des méthodologies fait rage. Plusieurs parties prenantes reprochent ainsi à l'Ecoscore, qui devrait inspirer le futur outil gouvernemental, de se borner à procéder à l'analyse du cycle de vie du produit. Ils mettent en avant que l'analyse de cycle de vie rend mal compte de l'impact des produits sur la biodiversité. Les défenseurs du Planet score reprochaient notamment au score environnemental retenu par les autorités, inspiré de l'Ecoscore, de donner de moins bonnes notes aux produits issus de l'agriculture biologique. [Plus de 85 000 lecteurs font confiance aux newsletters de The Conversation pour mieux comprendre les grands enjeux du monde. Abonnez-vous aujourd'hui] Etal d'un marché. Pxhere Affichage environnemental : bio ou pas, comment évaluer l'impact écologique des aliments ? |
| Keywords: | argiculture biologique, affichage environnemental, empreinte carbone, biodiversité, qualité de l'eau, impact environnemental |
| Date: | 2023–11–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04289337&r=ene |
| By: | Ashish Ashish Ashok Uikey (Symbiosis International University); Ruturaj Baber (Symbiosis International University) |
| Abstract: | This study attempts to examine the impact of green brand trust and self-brand connection on green brand loyalty, with green perceived value and green transparency as antecedents. The responses were collected from and users of electric vehicles, and the proposed hypotheses were tested using Structural Equation Modeling (SEM) through SmartPLS 4. The study found that green brand trust had a significant positive impact on green brand loyalty, while the relationship between self-brand connection and green brand loyalty significant but weak. The study highlighted the importance of green perceived value as an antecedent for self-brand connection and green brand trust, which was more significant than green transparency. The study offers insights to practitioners enhancing their knowledge on formation of customer, allowing them to develop effective marketing strategies. The study recommends that companies emphasize transparency in their marketing approaches and address green challenges related to their products' environmental value. Furthermore, the study suggests that green brand loyalty may be achieved through green transparency and green perceived value, which are crucial for establishing green brand trust. |
| Keywords: | Green Marketing Green Transparency Green Brand Trust Self-brand Connection Green Brand Loyalty Consumer Behavior Electric Vehicles, Green Marketing, Green Transparency, Green Brand Trust, Self-brand Connection, Green Brand Loyalty, Consumer Behavior, Electric Vehicles |
| Date: | 2023–09–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04346255&r=ene |
| By: | Harter, Franziska |
| Abstract: | Does the promotion of public transport crowd out other modes of climate friendly mobility? During the summer of 2022, Germany introduced two policy measures to countervail the rising cost of living and energy. This paper demonstrates that these measures did not only affect individuals relying on motorized mobility but cyclists as well. Employing publicly available data from urban bike counters and data from city administrations, I find that the number of trips commuted by bicycle significantly decreased on average by 20 rides per hour and station. Moreover, I find lasting impacts after the withdrawal that indicate that the pre-intervention trend reverted. |
| Keywords: | mobility, bike counter, policy intervention, interrupted time-series |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:roswps:168&r=ene |
| By: | Phoebe Koundouri; Conrad Landis; Konstantinos Dellis; Angelos Plataniotis |
| Abstract: | The paper consists of a review of the Environmental, Social and Governance Criteria (ESGs) and Sustainable Development Goals (SDGs) Frameworks with a focus on the EU policy context. Based on the most recent Literature, the integration of the SDGs in the ESG framework is discussed and we underline the need for more interdisciplinary and holistic frameworks to incorporate the long-term SDG targets into the Corporate Sustainability reporting framework in order to accelerate the transition of the EU business sector. |
| Keywords: | ESG, Sustainable Development Goals, SDG, CSRD, Sustainability Reporting |
| Date: | 2024–01–04 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2401&r=ene |
| By: | Fangzhi Wang; Hua Liao; Richard S. J. Tol; Changjing Ji |
| Abstract: | Carbon abatement decisions are usually based on the implausible assumption of constant social preference. This paper focuses on a specific case of market and non-market goods, and investigates the optimal climate policy when social preference for them is also changed by climate policy in the DICE model. The relative price of non-market goods grows over time due to increases in both relative scarcity and appreciation of it. Therefore, climbing relative price brings upward the social cost of carbon denominated in terms of market goods. Because abatement decision affects the valuation of non-market goods in the utility function, unlike previous climate-economy models, we solve the model iteratively by taking the obtained abatement rates from the last run as inputs in the current run. The results in baseline calibration advocate a more stringent climate policy, where endogenous social preference to climate policy raises the social cost of carbon further by roughly 12%-18% this century. Moreover, neglecting changing social preference leads to an underestimate of non-market goods damages by 15%. Our results support that climate policy is self-reinforced if it favors more expensive consumption type. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.11010&r=ene |
| By: | BELTRAN MIRALLES Manuel (European Commission - JRC); GOURDON Thomas (European Commission - JRC); SEIGNEUR Isabelle (European Commission - JRC); ARRANZ PADILLA Maria (European Commission - JRC); PICKARD GARCIA Nicolas (European Commission - JRC) |
| Abstract: | In its more common formulation in the European Union (EU) policy context, the ‘Do No Significant Harm’ (DNSH) principle aims to ensure that EU policies and programmes do not have a negative impact on the EU’s climate and environmental objectives. By doing this, the principle has transformed the ‘green oath’ from the European Green Deal into a reality applied by different EU initiatives. This study analyses the application of the DNSH principle in six EU instruments which have pioneered the use of the DNSH principle to integrate climate and environmental objectives in private finance and public funding: 1) the EU Taxonomy for sustainable activities; 2) the Recovery and Resilience Facility; 3) the European Regional Development Fund; 4) the Cohesion Fund; 5) the Just Transition Fund; and 6) the InvestEU Fund. The analysis maps the divergences in the way the DNSH principle is implemented across these EU instruments, identifying reasons that help to explain them. It also highlights existing interlinkages and commonalities in the application of the principle as well as the potential to build on the knowledge gained to develop common tools that could guide its implementation across EU instruments. Additionally, the implementation of the DNSH principle is starting to be applied in EU instruments extending beyond the current 2021-2027 policy cycle. In this context, the study suggests additional actions to take advantage of existing opportunities and to minimise potential risks. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc135691&r=ene |
| By: | Kejia Yang (Department of Environmental Social Science, Eawag, Dübendorf, Switzerland); Kaidong Feng (Centre for Technology, Innovation and Culture (TIK), University of Oslo, Norway) |
| Abstract: | In this paper, we explore how governance structures influence different transition pathways in the case of China’s green energy transitions. The paper challenges the dominant understanding, focused on state-led models, of China’s transitions, by comparing two different governance structures that emerged on the ground in two of China’s provinces. One structure follows the current path of centralised power systems, led by the developmental state model; the other departs from the existing model by building more distributed energy systems driven by a wide range of actors, this model being characterised as ‘distributed governance structures’. Although it is still too early to conclude which model will be dominant in the future, these two models may result in two divergent transition pathways for China’s future low-carbon development. We therefore present two governance scenarios for China’s future energy transitions and discuss their general implications. One governance capacity depends on the developmental state and its capacities to reflectively collect information and build knowledge capacity by engaging with big players. The other governance capacity depends on distributed capacity among a wide range of actors, and the learning and interactions among them. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:tik:inowpp:20240108&r=ene |
| By: | Bryan Bollinger; Naim Darghouth; Kenneth Gillingham; Andres Gonzalez-Lira |
| Abstract: | Product complementarities can shape market patterns, influencing the demand for related products and their accessories. This study examines complementarities in the demand for rooftop solar and an accessory, battery energy storage. Using nationwide administrative data, we estimate a dynamic nested-logit model of solar and storage adoption. We quantify the demand complementarity between solar and storage, and find that if storage was not available, 20% of households who coadopt solar and storage would not adopt anything. We find that the demand for solar and storage bundles increases with power outages, with a larger effect in California. |
| JEL: | C51 L94 Q48 Q58 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32003&r=ene |
| By: | Radhika Prosad Datta |
| Abstract: | This paper explores the application of Sample Entropy (SampEn) as a sophisticated tool for quantifying and predicting volatility in international oil price returns. SampEn, known for its ability to capture underlying patterns and predict periods of heightened volatility, is compared with traditional measures like standard deviation. The study utilizes a comprehensive dataset spanning 27 years (1986-2023) and employs both time series regression and machine learning methods. Results indicate SampEn's efficacy in predicting traditional volatility measures, with machine learning algorithms outperforming standard regression techniques during financial crises. The findings underscore SampEn's potential as a valuable tool for risk assessment and decision-making in the realm of oil price investments. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2312.12788&r=ene |
| By: | Bozzolo Lueckel, Fabio; Monaghan, Rory; Lynch, Muireann à |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:esr:wpaper:wp763&r=ene |
| By: | Pascal da Costa (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay) |
| Abstract: | La formation en ligne du DU AllCan permettra d'aborder les notions clés dans des champs disciplinaires variés (économie, droit de l'environnement, physique, écologie, RSE, histoire environnementale, ...) dans le but d'avoir une vue holistique des enjeux et des solutions associés aux transitions énergétique, climatique et écologique. • Acquérir les notions fondamentales pour comprendre les enjeux globaux associés au changement climatique et à l'érosion de la biodiversité • Permettre à l'apprenant de compléter et mettre en perspective leur formation initiale. • Acquérir un langage commun afin d'intégrer les savoirs de base des différentes disciplines abordées. • Etre capable d'analyser les conséquences du dérèglement climatique • Permettre d'aborder les solutions d'adaptation et de préservation des écosystèmes et des ressources naturelles. Programme : • Cours 1 : Présentation du volet 1 du GIEC par Valérie Masson Delmotte • Cours 2 : Présentation du volet 3 du GIEC par Franck Lecocq • Cours 3 : Synthèse des Impacts des changements climatiques sur la biodiversité par Paul Leadley • Cours 4 : Penser le DD et la RSE en termes de philosophie morale et de gouvernance par J-P Vanderlinden • Cours 5 : L'énergétique en quelques chiffres et notions clés par Laurent Zimmer • Cours 6 : Economie : Nexus énergie-climat-environnement par Pascal da Costa • Cours 7 : Introduction à l'économie circulaire par Yann Leroy |
| Keywords: | Economie du climat, Services écosystémiques |
| Date: | 2023–09–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04330665&r=ene |
| By: | Harpenau, Franziska; Magalhaes, Katrin Marques; Steffen, Nico; Wiewiorra, Lukas |
| Abstract: | More efficient and sustainable energy consumption behaviors are crucial to mitigate the adverse effects of climate change. This paper examines how dynamic personal pricing and externality cost incentives interact and affect energy conservation behaviors. We conduct an online lab experiment in which participants complete real-effort tasks under different cost schemes. Increasing personal costs that reduce individual bonuses, significantly decreases participants' energy usage, although it requires more effort in the form of additional time. However, emphasizing increases in externality costs, representing environmental damage through reduced donations, does not impact performance. This suggests that the introduction of such prosocial incentives matters more than their magnitude. While environmental attitudes predict baseline usage, they do not change marginal responses to cost changes. Our results provide novel evidence on the motivational nuances underlying energy conservation and have key implications for policies considering a combination of incentives. |
| Abstract: | Ein effizientes und nachhaltiges Energiesparverhalten ist von zentraler Bedeutung, um die negativen Auswirkungen des Klimawandels abzumildern. In diesem Beitrag wird untersucht, wie dynamische Anreize von Preisen und Externalitäten zusammenwirken und das Energiesparverhalten beeinflussen. Wir nutzen ein Online-Laborexperiment, bei dem die Teilnehmenden "Real-effort" Aufgaben unter verschiedenen Kostenstrukturen lösen. Eine Erhöhung der Kosten, welche individuelle Boni reduzieren, führt zu einem signifikanten Rückgang des Energieverbrauchs der Teilnehmenden, was aber mehr Aufwand in Form von zusätzlicher Zeit erfordert. Allerdings hat die Kommunikation steigender Externalitätskosten - die eine Spende verringern und Umweltschäden simulieren - keine Auswirkungen auf das Verhalten im Experiment. Dies deutet darauf hin, dass die Einführung solcher prosozialer Anreize wichtiger ist als deren Höhe. Während umweltfreundliche Einstellungen den grundsätzlichen Energieverbrauch beeinflussen, ändern sie hier nicht die marginalen Reaktionen auf Kostenänderungen. |
| Keywords: | Energy consumption, Energy conservation, Behavioral, Environment |
| JEL: | Q41 Q56 D91 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wikwps:280956&r=ene |