|
on Energy Economics |
| By: | Bustamante, Maria Cecilia; Zucchi, Francesca |
| Abstract: | The control of carbon emissions by policymakers poses the corporate challenge of developing an optimal carbon management policy. We provide a unified model that characterizes how firms should optimally manage emissions through production, green investment, and the trading of carbon credits. We show that carbon pricing reduces firms’ emissions but also induces firms to tilt towards more immediate yet transient types of green investment—such as abatement as opposed to innovation—as it becomes costlier to comply. Green innovation subsidies mitigate this effect and complement carbon pricing in ensuring innovation-driven sustainability. Perhaps surprisingly, we show that carbon regulation need not reduce firm value. JEL Classification: G30, G31, G12, D62, O33 |
| Keywords: | carbon abatement, carbon emissions, Carbon pricing, green innovation, sustainability |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242885&r=ene |
| By: | Eshchanov, Bahtiyor; Kochkorova, Djamilya |
| Abstract: | The aim of this study is to evaluate the impact of central energy supply deficiency on energy poverty in Kyrgyz republic, by analyzing 1900 households in 2013. The cross-household analysis conducted by World Bank- GIZ Survey, called CALISS 2013 were used. The relationship between traditional fuel consumption and energy poverty was investigated, mainly by using Energy Poverty Ratio (EPR). EPR is the ratio representing the portion of energy and fuel expenditure over income of household, by the use of ‘10% indicator’ approach. Households, with the share of income above 10% coverage of expenses associated with fuel and energy services, are acknowledged to be energy poor households. Obtained results represent statistically significant energy and fuel consumption affect on energy poverty index. The results specify extensive traditional biomass and fuel dependence of houses and increase in the number of energy poor households; a substantial decline in supplied energy consumption, indicating a shortage of central energy supply. Results, conclusion and some recommendations were suggested in terms of policy to be implemented, focusing on decreasing the level of energy poverty. |
| Keywords: | energy poverty; energy poverty ratio; energy supply; energy poor households |
| JEL: | H41 H53 O13 O44 P2 P28 |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119548&r=ene |
| By: | Többen, Johannes; Banning, Maximilian; Hembach-Stunden, Katharina; Stöver, Britta; Ulrich, Philip; Schwab, Thomas |
| Abstract: | The European Green Deal mandates a substantial transformation of the energy sector, responsible for more than 80 % of total greenhouse gas emissions. This study investigates the economic implica-tions of achieving climate neutrality in the European energy sector in light of the EU's core goal of economic cohesion, i.e. harmonious economic development across European regions. Employing a novel multi-regional input-output model, our analysis reveals how the renewable energy transition affects European regions. Under complete decarbonisation, changes in value added per capita range from -2, 450 Euro to +1, 570 Euro, and employment levels fluctuate between -2.1 % and +4.9 %. On average, most regions experience positive effects, characterised by an average increase in value added per capita of 10 Euro and a 0.3 % rise in employment in 2050. Overall, rural regions with sub-stantial renewable energy potential derive the greatest benefits, while urban regions heavily reliant on carbon-intensive industries are more likely to experience adverse effects. This dynamic fosters economic cohesion by providing opportunities for lagging regions to catch up, yet also poses fresh challenges to achieving this goal. Therefore, cohesion policy must expand its scope to counter the adverse effects as well as leveraging opportunities created by the renewable energy transition in all European regions. |
| Keywords: | energy, transition, cohesion, inequality, regions |
| JEL: | C67 O11 Q43 |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119374&r=ene |
| By: | Pollitt, M G. |
| Abstract: | This paper examines the 2021-2023 energy crisis in Europe exacerbated by the energy consequences of the full-scale Russia – Ukraine war which began in February 2022. We show that this is an historically unprecedented price shock to both gas and electricity prices. We then draw on lessons from UK energy policy in World War Two to inform European energy policy during this crisis. In light of this, we examine actual policy responses by the European Union (EU). The EU has responsibility for the European single market in electricity and gas (which also formally includes Norway and effectively includes the UK) and has attempted to co-ordinate EU-27 responses to the crisis. We highlight four good and three bad policy responses observed across Europe. We conclude with longer-run lessons for energy and climate policy arising from this gas and electricity price shock. |
| Keywords: | energy crisis, single market in energy, wartime |
| JEL: | L94 L95 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2350&r=ene |
| By: | Chaves, J. P.; Cossent, R.; Gómez San Román, T.; Linares, P.; Rivier, M. |
| Abstract: | The current European energy crisis, caused to a large extent by the unlawful invasion of Ukraine by Russia, has renewed calls for a deep reform of the European electricity market. In this paper, we look at the alternatives proposed for the reform of the European electricity market, analysing their advantages and disadvantages, and we put forward a specific proposal for the reform. We focus mostly on measures directed at the wholesale generation market, although we also propose some changes that we believe will also be needed at the retail level. Emergency measures to tackle the current energy crisis, which are not necessarily consistent with the long-term reform and should definitely not determine the long-term design of the European electricity market, are very briefly assessed in an annex, including their compatibility with this long-term reform. |
| Keywords: | Electricity market, energy transition, renewables |
| JEL: | Q41 L51 L94 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2325&r=ene |
| By: | Mehling, M. A. |
| Abstract: | Climate policy ambition lags behind committed decarbonization targets, due in large measure to the unfavorable political economy of climate policies that require a reduction in emissions or increase their cost, such as phase-out mandates or carbon pricing. This paper describes a policy innovation, supply-side crediting, that can improve the political economy of climate action, catalyze innovation, and contribute to the objective of a just transition. By creating a revenue stream for the decommissioning of fossil fuel reserves, supply-side crediting alters the incentive structure and generates political buy-in from key stakeholders in the energy economy. Revenue from supply-side crediting can scale up climate finance and accelerate the commercialization of necessary low-carbon solutions, such as carbon dioxide removal technologies. Through various impact channels, supply-side crediting can help overcome resistance against climate policy ambition and address socioeconomic impacts of the energy transition. Over time, supply-side crediting can thus unlock a virtuous sequence that enables increased viability of demand-side carbon constraints such as carbon pricing. |
| Keywords: | Supply-side approaches, fossil fuels, offset credits, political economy |
| JEL: | H23 O30 P18 Q54 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2346&r=ene |
| By: | Chyong, C. K.; Reiner, D. M.; Ly, R.; Fajardy, M. |
| Abstract: | We build a unit-commitment optimisation model of a flexible combined-cycle gas turbine (CCGT) with solvent-based post-combustion carbon capture and storage (CCS). We derive the economic benefits of CCS with solvent storage for a 20-year investment (2030-2050) based on the expected long-term increase in carbon prices and the volatility of electricity prices. Drawing on National Grid’s Future Energy Scenarios for the UK, our model shows that the CCGT-CCS plant profit is, on average, higher with solvent storage because of intertemporal arbitrage opportunities created by having this storage solution available. We find that the economic value of this intertemporal flexibility increases with greater electricity price volatility. Under high price volatility, the total return on investment (ROI) could reach 81- 246%. In relative terms, this is much higher than the total ROI of the CCGT-CCS plant itself (7-64%). While there is an economic case for investing in flexible CCS with solvent storage, there are wider system benefits too. A flexible solvent storage solution should be seen in the context of the overall system ‘flexibility’ requirements of a low-carbon power system. On a cost basis, solvent storage represents just a fraction of the capital costs of more “mainstream†energy storage technologies, such as lithium-ion batteries or hydro pumped storage, while CCGT-CCS offers firm power. Overall, while seen as a rather technical solution, if abated fossil fuel generation is to be part of a future low-carbon power system having this flexibility adds economic benefits not just to operators but also improves overall system security and complements high shares of variable renewables on the grid. |
| Keywords: | Combined-cycle gas turbines, Carbon capture and storage, unit-commitment models, optimisation, flexible carbon capture, solvent storage |
| JEL: | C61 Q47 Q48 Q52 Q55 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2336&r=ene |
| By: | Mehling, M. A. |
| Abstract: | Two types of spillover effects influence progress towards decarbonization: greenhouse gas emissions leakage as well as low-carbon technology innovation and diffusion. Emissions leakage caused by uneven imposition of carbon constraints limits their climate benefits, undermines political support, and gives rise to equity concerns. Solutions to address emissions leakage, meanwhile, are incompatible with global decarbonization or face serious implementation challenges. Diffusion of low -carbon technology averts emissions leakage, but depends on scaled up investment in research, development and deployment to drive down technology cost. Supply-side crediting can address both spillover effects, reducing emissions leakage by increasing global fossil fuel prices, and generating revenue for investment in lowcarbon technologies to accelerate their diffusion and further limit emissions leakage. |
| Keywords: | Climate change, spillover effects, emissions leakage, supply-side approaches, technology, offset credits |
| JEL: | H23 K33 O30 Q54 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2345&r=ene |
| By: | Lee, J.; Reiner, D. M. |
| Abstract: | We empirically derive the determinants of British public preferences for different low-carbon energy sources using machine learning algorithm-based variable selection methods (ridge, lasso, and elastic net regression models). We seek to understand the drivers of support for solar, wind, biomass, and nuclear energy, which are the largest low-carbon energy sources and together account for the majority of UK power generation. Explanatory variables examined include those related to demographics, knowledge, perceptions of climate change, and government policy. We carry out a comparative study by synthesising the results of our independent analyses for each energy source and find that the preferred energy sources vary with respondents’ views on anticipated climate change impacts. Those who believe that potential effects of climate change will be catastrophic tend to prefer renewable energy sources whereas those less concerned about climate change tend to prefer nuclear power. The public also prefer energy sources about which they are more familiar or knowledgeable. |
| Keywords: | low carbon energy, variable selection models, energy mix, public trust, climate change perceptions, nuclear power, renewables |
| JEL: | B4 C5 P48 Q42 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2320&r=ene |
| By: | Lu; Pollitt, M. G.; Wang, K.; Wei, Y-M. |
| Abstract: | China has adopted the carbon emissions trading system (ETS) due to its advantages on efficiency and cost grounds. Prior to the national carbon market, China operated seven ETS pilots as experiments for eight years in addition to the existing Energy Conservation and Carbon Abatement Target Responsibility System (ECCA-TRS) in order to accumulate experience with carbon markets. However, the incremental effects of these pilots are unclear so far. Here, we show that the ETS pilots have produced no additional carbon abatement effect or abatement cost-saving effect, while ECCA-TRS contributed primarily to the relative decline in CO2 emissions and absolute decline in CO2 intensity of covered industries in pilot regions. A binding target is necessary to permit ETS to act as the backstop emissions constraint. Adjusting local governments' abatement achievement using the buy-in and sell-out of carbon allowances can allow the ECCA-TRS and ETS to act as well-integrated instruments. |
| Keywords: | Carbon Emissions Trading Scheme, Target responsibility system, Policy evaluation, Triple difference-in-differences |
| JEL: | Q54 L94 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2349&r=ene |
| By: | Dowds, Jonathan; Howerter, Sarah; Hines, Paul; Aultman-Hall, Lisa |
| Abstract: | This paper describes a model for developing highly resolved, time-of-day specific electric vehicle charging demand profiles from travel survey data. Since timing of vehicle charging is dependent on electric vehicle supply equipment (EVSE) availability, four EVSE scenarios are considered: 1) home only, 2) home and workplace only, 3) universal EVSE, and 4) a probabilistic scenario where EVSE availability varies by location. To illustrate the implications of differing demand profiles on power grid operation with high renewable generating capacity, the profiles are in a typical regional economic dispatch model. The results provide a valuable approach for understanding the interactions between vehicle electrification and renewable energy deployment while exploring an updated range of assumptions about EVSE availability and charging behaviors for New York and the six New England states. All scenarios result in increased peak demand and increased generation by non-renewable generating sources. This indicates that incentive mechanisms that influence charging decisions are necessary to attain lower emissions outcomes. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Electric vehicle, electric dispatch model, vehicle charging, National Household Transportation Survey |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9nv8z4kc&r=ene |
| By: | Hansen, Gerrit |
| Abstract: | The upcoming United Nations Climate Change Conference in Dubai (COP28) will see a new round of battle regarding the call to phase out fossil fuels. Intense debates have taken place in Germany and the European Union (EU) to determine positions in the run-up to the conference. The main point of contention is whether to call for a complete global phase-out of all fossil fuels or only for a phase-down of their unabated use, that is, without additional abatement measures such as carbon capture and storage (CCS). The role of abated fossil fuels in a net-zero economy is very controversial. In the long run, it will depend on several factors, including the effective deployment and scale-up of CCS, the capture rates achieved therein and the availability of carbon dioxide removal (CDR) technologies to address residual emissions. CCS is unlikely to make a significant contribution to urgently needed greenhouse gas reductions in the power sector by 2030. Whether the decision in Dubai will deliver a credible signal to rapidly reduce fossil fuel emissions depends in no small part on a precise, science-based definition of the scale of emission reductions required for fossil fuels to be considered as abated in line with the temperature goal of the Paris Agreement. |
| Keywords: | United Nations Climate Change Conference in Dubai 2023 (COP28), Intergovernmental Panel on Climate Change (IPCC), global CO2 emissions, net zero, climate crisis, European Union (EU), Carbon Capture and Storage (CCS), Carbon Dioxide Removal (CDR), UNFCCC, coal, oil, gas, Global Stocktake (GST) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:281027&r=ene |
| By: | Severin Borenstein |
| Abstract: | Since the 1970s, high volumetric (per kilowatt-hour) electricity prices have been justified in many policy discussions as encouraging more efficient use of electricity and placing more of the cost burden on those who are less prudent in their use. The argument has been used in support of increasing-block electricity pricing, under which the price per kilowatt-hour rises as a household consumes more electricity per month. More recently, in California, opponents of a proposal to lower volumetric prices and replace the revenue through fixed monthly charges have suggested that the change would just benefit “energy hogs”. In this paper, I first investigate characteristics of households who are high electricity consumers and ask how effectively such pricing targets profligate residential electricity consumption. I then look more broadly at the energy usage individuals are responsible for in the economy, how other energy usage is priced, and the role that residential electricity use plays in the overall picture. Finally, I connect the discussion of profligate direct and indirect energy consumption with the negative externalities produced, which are typically the justification for such penalty pricing. |
| JEL: | Q41 Q48 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32023&r=ene |
| By: | Martijn A. Boermans; Maurice Bun; Yasmine van der Straten |
| Abstract: | We study whether climate transition risk is priced in corporate bond markets. We assess whether corporate bond investors value companies’ efforts to mitigate climate change by innovating in the green space. By combining global firm-level data on greenhouse emissions and green patents with bond-level holdings data, we provide evidence of a positive transition risk premium, which is significantly lower for emission intensive companies that engage in green innovation. The joint effect of emission intensity and green innovation on bond yield spreads is driven by European investors, specifically institutional investors. Overall, our results indicate that investors care about whether companies are ‘fit’ for the green transition. |
| Keywords: | Climate Change; Climate Transition Risk; Carbon Premium; Greenium; Green Innovation; Green Patents; Institutional Investors; Institutional Ownership |
| JEL: | G12 G15 G23 Q51 Q54 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:797&r=ene |
| By: | Antonio Sileo (Fondazione Eni Enrico Mattei); Monica Bonacina (Fondazione Eni Enrico Mattei) |
| Abstract: | This paper studies the effects of the latest European regulations on carbon emissions on the Italian car market and discusses the possibility of achieving climate neutrality of road transport through the “mere” replacement of cars currently on the road with new zero-emission cars. Since 2016, automakers’ production strategies have changed dramatically, with an increasing number of zero (and low) emission models on car lists. To date, these changes on the supply side have not been matched by similar changes in purchasing habits. In recent years, not only have few zero (and low) emission cars been sold, but also few new cars. Unless epoch-making changes occur, it is completely unrealistic to think that we can achieve climate neutrality by 2050 by leveraging exclusively on the renewal of the fleet. |
| Keywords: | automotive market, sustainable mobility, road transport decarbonization, electro-mobility, EU-car CO2 regulation |
| JEL: | L62 Q55 Q58 R41 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2024.01&r=ene |
| By: | Lanshina, Tatyana (Ланьшина, Татьяна) (The Russian Presidential Academy of National Economy and Public Administration) |
| Abstract: | The paper analyzes how the geopolitical events of 2022 influenced plans for the energy transition in the EU, and how they affected the development of the renewable energy sector in Russia. In the course of the study, it was revealed that in the current conditions, the intention of the EU to carry out the energy transition has not only not weakened, but, on the contrary, has strengthened. The Russian renewable energy industry, which until 2022 developed with a significant lag compared to both developed and developing countries, after February 2022, was in limbo, because a number of Western partners left the industry or intend to leave it, and the search for Eastern partners is complicated by risks, which potential new partners may face when cooperating with Western partners, as well as by the small size of the Russian RES market, which makes potential cooperation meaningless, especially in light of the identified risks. The research methodology consists in the use of general scientific methods (analysis and synthesis, induction and deduction, etc.). The results of the study contain recommendations for Russia's energy transition policy, which could contribute to the establishment of new economic partnerships between Russia and other countries in the field of modern energy in the long term. One of the most important components of such a policy is to strengthen the nationally determined contribution to the implementation of the Paris Agreement. However, new partnerships are out of the question as long as hostilities continue. |
| Keywords: | climate policy, carbon neutrality, renewable energy sources (RES) |
| JEL: | Q42 |
| Date: | 2022–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:rnp:wpaper:w20220304&r=ene |
| By: | Schaffer, Lena Maria (University of Luzern); Magyar, Zsuzsanna |
| Abstract: | We examine how exposure to energy transition and climate policy vulnerability influence popular support for more ambitious climate policy. Moreover, we explore whether this relationship depends on a person's generalized and political trust. Comparing data from surveys in Germany and Switzerland, our findings reveal that perceived exposure to energy transition positively influences climate policy support, while individual climate policy vulnerability decreases it. For individuals with higher levels of trust, exposure helps enhance the positive effect (subjective exposure) or dampen the negative effect (policy vulnerability). These results underscore the importance of incorporating trust and subjective perceptions into climate policy frameworks. |
| Date: | 2023–12–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:8cquz&r=ene |
| By: | Liam Welsh; Sebastian Jaimungal |
| Abstract: | In response to the global climate crisis, governments worldwide are introducing legislation to reduce greenhouse gas (GHG) emissions to help mitigate environmental catastrophes. One method to encourage emission reductions is to incentivize carbon capturing and carbon reducing projects while simultaneously penalising excess GHG output. Firms that invest in carbon capturing projects or reduce their emissions can receive offset credits (OCs) in return. These OCs can be used for regulatory purposes to offset their excess emissions in a compliance period. OCs may also be traded between firms. Thus, firms have the choice between investing in projects to generate OCs or to trade OCs. In this work, we present a novel market framework and characterise the optimal behaviour of GHG OC market participants in both single-player and two-player settings. We analyse both a single-period and multi-period setting. As the market model does not elicit a closed form solution, we develop a numerical methodology to estimate players' optimal behaviours in accordance to the Nash equilibria. Our findings indicate the actions players take are dependent on the scale of their project opportunities as well as their fellow market participants. We demonstrate the importance of behaving optimally via simulations in order to offset emission penalties and the importance of investing in GHG reducing or capturing projects from a financial perspective. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.01427&r=ene |
| By: | Dirk Broeders; Marleen de Jonge; David Rijsbergen |
| Abstract: | We document a positive and statistically significant carbon premium that investors demand for investing in bonds issued by high carbon-emitting firms in the euro area. Over the entire sample period, we estimate that doubling a firm’s Scope 1 and 2 emissions results in an average increase of 6.6 basis points in the spread on the firm’s issued bonds. In addition, we find that the carbon premium has increased since 2020 and the effect reached 13.9 basis points by early 2022. These results suggest that European companies with high levels of carbon emissions are experiencing progressively higher financing costs. Our research also reveals a distinctive carbon premium term structure, rising with longer maturities. Interestingly, over time the term structure flat tens, suggesting investors’ confident anticipation of ongoing carbon pricing in the European Union at a stable pace. |
| Keywords: | Carbon Premium; Carbon Premium Term Structure; Climate Change; Climate Transition Risk |
| JEL: | G12 G15 G23 Q51 Q54 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:798&r=ene |
| By: | Simshauser, P. |
| Abstract: | The creation of Australia’s National Electricity Market and the associated structural reforms triggered the separation of transmission from generation during the 1990s. The economic framework which governs electricity networks is largely based on the British model and Littlechild’s (1983) RPI-X incentive regulation. This framework was designed to correct over-capacity, a characteristic of the pre-reform era. The NEM experienced one episode of network over-investment (viz. 2007-2015) but there is no evidence of regulatory failure per se. Investment mistakes in retrospect were driven by policy error and forecast error – noting this period was preceded by very strong growth in electricity demand, and then coincided with the Global Financial Crisis (2007-2009) and Australia’s rapid uptake of rooftop solar PV – the effects of which were virtually unforecastable, ex ante. From 2015, the regulatory framework proved effective in correcting the 2007-2015 cycle with electricity networks now considered the more stable part of the energy supply chain. However, while NEM regulation has been effective in dealing with episodes of overcapacity, as to whether the rigid and highly prescriptive Rules are capable of dealing with the accelerating task of decarbonisation is an open question. NEM State Governments are legislating outside the Rules to meet their own policy objectives and timeframes. |
| Keywords: | Microeconomic reform, electricity transmission, network regulation |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2340&r=ene |
| By: | Lilienkamp, Arne (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Namockel, Nils (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Adopting electric vehicles (EVs) and implementing variable electricity tariffs increase peak demand and the risk of congestion in distribution grids. To avert critical grid situations and sidestep expensive grid expansions, Distribution System Operators (DSOs) must have intervention rights, allowing them to curtail charging processes. Various curtailment strategies are possible, varying in spatio-temporal differentiation and possible discrimination. However, evaluating different strategies is complex due to the interplay of economic factors, technical requirements, and regulatory constraints - a complexity not fully addressed in the current literature. Our study introduces a sophisticated model to optimize electric vehicle charging strategies to address this gap. This model considers different tariff schemes (Fixed, Time-of-Use, and Real-Time) and incorporates DSO interventions (basic, variable, and smart) within its optimization framework. Based on the model, we analyze the flexibility demand and total electricity costs from the users’ perspective. Applying our model to a synthetic distribution grid, we find that flexible tariffs offer consumers only marginal economic benefits and increase the risk of grid congestion due to herding behavior. All curtailment strategies effectively alleviate congestion, with variable curtailment featuring spatio-temporal differentiation, approaching optimality regarding flexibility demand. Notably, applying curtailment from the users’ perspective does not lower cost savings significantly. |
| Keywords: | Distribution Grid; Electric Vehicles; Smart Charging; Flexibility |
| JEL: | C61 D47 Q41 Q48 |
| Date: | 2024–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2024_001&r=ene |
| By: | Francisco Estrada; Veronica Lupi; Wouter Botzen; Richard S. J. Tol |
| Abstract: | The social cost of carbon (SCC) serves as a concise gauge of climate change's economic impact, often reported at the global and country level. SCC values are disproportionately high for less-developed, populous countries. Assessing the contributions of urban and non-urban areas to the SCC can provide additional insights for climate policy. Cities are essential for defining global emissions, influencing warming levels and associated damages. High exposure and concurrent socioenvironmental problems exacerbate climate change risks in cities. Using a spatially explicit integrated assessment model, the SCC is estimated at USD$137-USD$579/tCO2, rising to USD$262-USD$1, 075/tCO2 when including urban heat island (UHI) warming. Urban SCC dominates, with both urban exposure and the UHI contributing significantly. A permanent 1% reduction of the UHI in urban areas yields net present benefits of USD$484-USD$1, 562 per urban dweller. Global cities have significant leverage and incentives for a swift transition to a low-carbon economy, and for reducing local warming. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.00919&r=ene |
| By: | Covatariu, A.; Duma, D.; Giulietti, M.; Pollitt M. |
| Abstract: | There is growing consensus that the role of the distribution system operator (DSO) is changing given the implications of net zero. The transition process requires additional roles for the DSO in facilitating the new technologies and business models that will contribute to decarbonization. Discussions on the active DSO abound yet a working definition is still missing. This paper aims to propose such a definition and a workable methodology for measuring the extent to which a DSO is active. The methodology will be applied to electricity and gas DSOs in the UK and the challenges will be presented and analyzed. |
| Keywords: | distribution system operator, distributed energy resources, decarbonisation |
| JEL: | L94 L95 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2348&r=ene |
| By: | Juan S. Mora-Sanguinetti (Banque de France - Eurosystème and Banco de España - Eurosistema); Andrés Atienza-Maeso (Universidad Carlos III and Banco de España - Eurosistema) |
| Abstract: | The achievement of an environmentally sustainable growth model, the development of renewable energies or the adoption of energy efficiency measures are nowadays fundamental issues in economic analysis and are a substantial part of the public debate. However, while there may be an increased social awareness of these issues, a different question is at what pace these social concerns have been translated into regulation, fostering or hindering the development of new markets or “green” technologies. This paper proposes a rigorous empirical study identifying and quantifying, through text analysis, all regulations related to four different subject blocks associated with “green growth” (renewable energies, sustainable transportation, pollution and energy efficiency), issued by Spanish national or regional governments over the period 2000-2022. This research thus constructs a database in panel data format. Among other results, we identify 3, 482 regulations related to renewable energies, 783 regulations dealing with sustainable transportation, 108 on pollution management and 5, 116 related to the measurement (and management) of energy efficiency. The results show that regulation is diverse by subject matter, reflects significant regional diversity and has increased over time, especially in more recent years, after a certain standstill during the Great Recession. This database could help develop future research projects on the impacts of “green” regulation on certain economic or institutional variables (such as “green” innovation or environmental conflict). The paper concludes with a comparison of renewable energy regulation in France and Spain, also based on text analysis. Spain shows a higher and more disaggregated volume of regulation. |
| Keywords: | energy efficiency, renewable energies, sustainable transport, pollution, regulation, regulatory complexity, text mining |
| JEL: | K32 Q5 O13 O44 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2336&r=ene |
| By: | Toba, N.; Jamasb, T.; Maurer, L.; Sen, A. |
| Abstract: | Auctions are an increasingly popular means of competitively promoting and procuring renewable energy to meet energy, social, and climate change objectives. To succeed, the technology designs need to accommodate technological progress, declining costs, and increasing Environmental, Social and Governance (ESG) demand. This analysis examines international experiences with large-scale solar photovoltaic (PV) and battery energy storage systems (BESS) auctions, which may be useful for East and Southeast Asia. It revisits auctions' theoretical and conceptual frameworks while concentrating on the ESG aspect from the perspective of such key stakeholders as investors, government, bidders, and communities, regarding efficient allocations of risks, costs, and benefits. It then relates this framework to real-world practices and international evidence on solar PV with and without BESS. The analysis shows that integrating ESG in auction designs and business models is possible and can benefit business and sustainable development. This analysis’ focus on the ESG and solar PV plus BESS in auctions contribute are nearly non-existent in the existing academic literature according to the review by del Río and Kiefer (2023). |
| Keywords: | Renewable energy, solar power, battery storage, auction design |
| JEL: | D0 D4 D8 L0 L1 L9 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2344&r=ene |
| By: | Economou, George; Halkos, George |
| Abstract: | Natural resources provide ecosystem services to humans and society. Economic sectors use natural resources for economic benefits. Intense and uncontrolled economic activities and human intervention create adverse effects on the balance between all pillars of sustainability, namely the economy, environment, and society. In this context, researchers investigate potential causalities to provide inputs and insights into relevant decision-making processes and structure effective, applicable, and long-lasting plans and policies. These policies highlight the role of energy efficiency by accelerating the replacement of fossil fuels with renewables and minimizing greenhouse and carbon dioxide emissions. The Environmental Kuznets Curve (EKC) hypothesis and the energy growth nexus discussion offer research fields to determine whether growth creates environmental degradation or whether energy drives economic growth. Both approaches can be used under different methodological approaches using various indicators, groups of countries, and thematic fields. Research findings should accompany relevant practical implications for the business world and everyday life. These implications are expected to advance responsible consumptive behavior, the use of technological advancement, and a sustainability culture concerning households, organizations, and consumers. The key target is to bring a better future closer to our reality. |
| Keywords: | Environment; energy; economy; sustainability. |
| JEL: | Q01 Q40 Q50 Q56 Q58 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119780&r=ene |
| By: | Klaus Gugler (Department of Economics, Vienna University of Economics and Business); Florian Szücs (Department of Economics, Vienna University of Economics and Business); Thomas Wiedenhofer (Department of Economics, Vienna University of Economics and Business) |
| Abstract: | This article evaluates if and to which extent policy can steer innovation towards eco-friendly technologies. We construct a cross-country dataset on sectoral green innovation and complement it with data on policies designed to address environmental market failures: environmental taxes, regulation, and R&D subsidies. While all of these tools exert a positive effect on green innovation, our IV estimates reveal substantial heterogeneities across policies. Overall, green innovation reacts most strongly to R&D subsidies for renewables, but interaction effects between different policies need to be considered. |
| Keywords: | climate change, environmental policies, directed technological change, green patents, regulation, taxes, R&D |
| JEL: | Q54 Q55 Q58 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp355&r=ene |
| By: | Dittmar, Robert F.; Schlag, Christian; Thimme, Julian |
| Abstract: | Standard applications of the consumption-based asset pricing model assume that goods and services within the nondurable consumption bundle are substitutes. We estimate substitution elasticities between different consumption bundles and show that households cannot substitute energy consumption by consumption of other nondurables. As a consequence, energy consumption affects the pricing function as a separate factor. Variation in energy consumption betas explains a large part of the premia related to value, investment, and operating profitability. For example, value stocks are typically more energy-intensive than growth stocks and thus riskier, since they suffer more from the oil supply shocks that also affect households. |
| Keywords: | Asset pricing, consumption, cross-section of stock returns |
| JEL: | G12 E44 D81 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:280967&r=ene |
| By: | Gohdes, N.Nicholas; Simshauser, P.; Wilson, C. |
| Abstract: | Energy markets were designed to maximise productive, allocative and dynamic efficiency. Although renewables have become the dominant investment in deregulated energy markets, decarbonisation may not proceed at a pace consistent with the aspirations of policymakers. This has led governments in a number of jurisdictions to prime markets through ‘Contracts for- Differences’ (CfDs) or Power Purchase Agreements (PPAs), thus bringing forward investment and decarbonisation efforts. The war in Ukraine and its adverse impact on energy prices only emphasises a sense of urgency on an energy security dimension. Variable Renewable Energy (VRE) projects in Australia are typically underpinned by run-of-plant PPAs, but an emerging trend has been rising number of semi-merchant projects whereby some level of spot market exposure is retained. In this article, we examine how and why the semi-merchant investment model has arisen along with the minimum contracted coverage for a bankable project financing. Results reveal for investors with a target of 60-65% debt within the capital structure, a revenue mix comprising 73-78% PPA coverage and 22-27% merchant plant exposure is viable and a tractable project financing. For policymakers seeking to elicit 5000 MW of VRE plant capacity, the auction need only offer ~3800MW of CfD’s capacity, which has the benefit of reducing taxpayer exposures (cf. on-market transactions). |
| Keywords: | PPAs, Renewable Energy, Counterparty Credit, Project Finance, Cost of Capital |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2334&r=ene |
| By: | Hansen, Gerrit |
| Abstract: | Bei der anstehenden UN-Klimakonferenz in Dubai (COP28) wird erneut um den globalen Ausstieg aus fossilen Brennstoffen gerungen. Auch in Deutschland und der EU gab es im Vorfeld intensive Debatten zur Positionsfindung. Strittig ist vor allem die Frage, ob global ein Komplettausstieg aus allen fossilen Brennstoffen gefordert werden soll - oder nur ein Herunterfahren der ungeminderten Nutzung, also jener ohne zusätzliche Klimaschutzmaßnahmen wie Kohlendioxidabscheidung und -speicherung (Carbon Capture and Storage, CCS). Welche Rolle emissionsreduzierte fossile Energieträger in einer klimaneutralen Wirtschaft haben können, ist sehr umstritten. Langfristig ist dies abhängig von einem erfolgreichen Hochlauf von CCS, den dabei erreichten Abscheideraten und der Verfügbarkeit von Technologien zur CO2-Entnahme aus der Atmosphäre (Carbon Dioxide Removal, CDR), mit der Restemissionen ausgeglichen werden. Bis 2030 ist nicht mit signifikanten Einsparungen von Treibhausgas durch CCS im Stromsektor zu rechnen. Ob in Dubai ein glaubwürdiges Signal für das rasche Absenken fossiler Emissionen gesetzt werden kann, hängt nicht zuletzt an einer klaren und wissenschaftsbasierten Definition, wann von einer emissionsreduzierten Nutzung fossiler Brennstoffe im Einklang mit dem Temperaturziel des Pariser Klimaabkommens die Rede sein kann. |
| Keywords: | UN-Klimakonferenz in Dubai 2023 (COP28), Ausstieg aus fossilen Brennstoffen, Kohle, Öl und Gas, Kohlendioxidabscheidung und -speicherung (Carbon Capture and Storage, CCS), CO2-Entnahme aus der Atmosphäre (Carbon Dioxide Removal, CDR), Klimarahmenkonvention der Vereinten Nationen (UNFCCC), Pariser Klimaabkommen, 1, 5-Grad-Ziel, Global Stocktake (GST) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpakt:281024&r=ene |
| By: | Webbe-Wood, D.; Nuttall, W. J.; Kazantzis, N. K.; Chyong C. K. |
| Abstract: | A developer considering the construction of a Steam Methane Reforming facility for the production of hydrogen from natural gas faces the decision as to whether to incorporate and operate a Carbon Capture and Storage (CCS) unit, as part of the facility, in an environment where the costs of inputs and the price of hydrogen are uncertain. Conventional valuation methodologies such as Discounted Cash Flow (DCF) cannot systematically integrate uncertainty from changing market and regulatory conditions. Such methods are also unable to account for the ability of management to make use of flexibility to respond as the uncertainties are progressively resolved proactively. Consequently, an Engineering Flexibility / Real Options approach has been developed to allow the calculation of the additional value that the developer might obtain if a CCS unit is not fitted at the time of construction of the SMR plant. Instead, the plant is constructed so that the CCS unit can be retrofitted during the plant’s lifetime if the economic conditions are such that it appears that this will increase the value of the SMR plant. Application of this approach has shown that, for this example, the Net Present Values are increased in a range of energy price and cost of CO2 release scenarios, i.e. the Real Option has a positive value. These findings hold for a range of discount rates. Similarly, the approach improves the Value at Risk and the Value at Gain. Whilst in this work, the approach has been applied to the example of the decision of whether to fit a CSS unit to an SMR plant for the production of blue hydrogen, it is believed that a similar approach can be applied to other situations. |
| Keywords: | Uncertainty, Investment Decisions, Blue Hydrogen, Carbon Capture and Storage Under Uncertainty, Real Options, Monte-Carlo Simulation |
| JEL: | D81 G11 Q40 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2338&r=ene |
| By: | Matthew Ashenfarb; Matthew Kotchen |
| Abstract: | This paper provides stated preference (SP) estimates of the average social cost of carbon (ASCC) for use in evaluation of the benefits and costs of climate policy. Based on a U.S. nationally representative survey, we find an average individual willingness-to-pay (WTP) of $1, 116 per year to keep global warming less than 2°C by 2100 compared to a business-as-usual temperature change. Combining the WTP estimate with population projections and assessments of the required emission reductions, we find a domestic ASCC of $8 per tonne of carbon dioxide (CO2). Applying a benefits transfer approach to infer WTP in other countries, we obtain an estimate of the global ASCC of $39 per tonne, with a 95-percent confidence interval of $32-$48. The estimate is insensitive to the discount rate, but it does vary with assumptions about the income elasticity of WTP and the rate of change in marginal abatement costs. Reasonable scenarios create a range of estimates between $12-$118 per tonne. We also examine the impact of distributional weighting based on the elasticity of the marginal utility of income, providing distributionally-weighted estimates of the global ASCC for use in all countries. We argue that a SP estimate of the ASCC is an useful complement to existing estimates of the marginal social cost of carbon (SCC) based on different valuation approaches. |
| JEL: | H4 Q51 Q54 Q58 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32043&r=ene |
| By: | Gilles Lafforgue (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Etienne Lorang (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres) |
| Abstract: | This paper investigates the recycling opportunities of an industrial sector constrained by resource, climate, and waste capacities. To do this, we model the full lifecycle of a good to consider the waste and greenhouse gas (GHG) emissions coming from both its production — from virgin or recycled materials — and consumption. We identify the optimal trajectories of resources use, mainly depending on the relative scarcity of the resources and on their emissions. Although recycling is usually, and correctly, noted as an opportunity to reduce the impact of consumption on primary resources and waste, we also consider the possible negative environmental consequences of recycling and we discuss the resulting arbitrations. We characterize the optimal recycling strategy and we show that, in some cases, the recycling rate through time is an inverted U-shape, and there can be a catch-up phase of consumption at the end of the social planner program. Finally, we discuss the policy implications of our model by identifying and analyzing the set of optimal tax-subsidy schemes, and we highlight the existence of standard environmental externalities as well as a positive externality linked to the absence of a market for waste. |
| Keywords: | Recycling, Resource extraction, Waste, GHG emissions |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03542512&r=ene |
| By: | Arpita Ghosh (Department of Economics, University of Exeter); Brendon McConnell (Department of Economics, City University of London); Jaime Millán-Quijano (Navarra Center for International Development, Universidad de Navarra) |
| Abstract: | We study the housing market response to a country-wide policy that mandated the provision of energy efficiency information with all marketing material at the time of listing. Using the near universe of housing sales in England and Wales, we match in the energy efficiency status of the property from Energy Performance Certificates data. We develop a conceptual framework that makes clear the key channels through which the policy may impact house prices - an information-driven salience channel and a market valuation channel. We provide causal evidence of homebuyers' willingness to pay for a higher energy rated property, documenting a 1-3% premium to a higher energy efficiency rating at the national level, and a 3-6% premium in the London market. We explore a set of key margins along which homebuyers can respond, ruling out as explanations both a consumption channel and an information channel. We conclude that the elevated EPC-rating premiums are driven by a market valuation channel, a conclusion for which we provide empirical support. Such a conclusion is of key policy importance, as it suggests market-facing energy efficiency regulations can increase demand for more energy efficient housing, even in absence of any discernible demand-side consumption or information effects. |
| Keywords: | hedonic price models, energy performance certificates, real estate |
| JEL: | R38 Q48 K32 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:exe:wpaper:2402&r=ene |
| By: | Newbery, D. |
| Abstract: | Liberalized electricity markets require unbundling transmission from generation. For least system cost, generation needs to locate to minimize generation and transmission investment and operation cost. Britain offers a good example of the challenges of and responses to setting transmission access fees to guide the location of massive renewables entry, very differently located to old fossil plants for which the grid was designed. Over-rewarding renewables pre-2014 worked strongly against these location signals, amplifying congestion. Proposals to coordinate transmission and generation off-shore show considerable benefits but coordination needs to be extended on-shore. Partial Locational Marginal Pricing (LMP in the realtime market might deliver less than full LMP but at much lower cost. Modest changes to transmission and auctioned renewables contracts could deliver quick coordination benefits independent of LMP. |
| Keywords: | transmission fees, regulation, off-shore wind, LMP |
| JEL: | D02 D44 H54 L51 L94 Q42 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2335&r=ene |
| By: | Robert J.R. Elliott; Viet Nguyen-Tien; Eric Strobl; Chengyu Zhang |
| Abstract: | Knowing how long the average vehicle remains roadworthy before being scrapped is a crucial input into life cycle assessment (LCA) and total cost of ownership (TCO) studies of different vehicle powertrains. This study leverages a dataset of over 300 million MOT records from 2005 to 2022 for over 30 million vehicles registered in Great Britain and uses parametric survival analysis with interval-censored data to examine the longevity of various powertrains under real usage conditions. Our findings reveal that (plugin) hybrid electric vehicles have the longest expected longevity in terms of years and mileage, both of which are about 50% higher than those of an average fleet vehicle. Battery electric vehicles (BEVs), while initially showing lower reliability, have benefited from rapid technological improvements such that the latest BEVs in our sample match the lifespan of petrol vehicles despite being used more intensively. Longevity is also impacted by engine size, location, and make of vehicle. The results provide parameter estimates that can be used to update TCO and LCA models and also shed light on EV diffusion patterns, fleet replacement strategies, and end-of-life treatment planning, including the increasingly important debate around EV battery recycling and second-life options. |
| Keywords: | electric vehicles, survival analysis, total cost of ownership, life cycle assessment |
| Date: | 2024–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1972&r=ene |
| By: | Geoff Boeing; Clemens Pilgram; Yougeng Lu |
| Abstract: | This study estimates the relationships between street network characteristics and transport-sector CO2 emissions across every urban area in the world and investigates whether they are the same across development levels and urban design paradigms. The prior literature has estimated relationships between street network design and transport emissions -- including greenhouse gases implicated in climate change -- primarily through case studies focusing on certain world regions or relatively small samples of cities, complicating generalizability and applicability for evidence-informed practice. Our worldwide study finds that straighter, more-connected, and less-overbuilt street networks are associated with lower transport emissions, all else equal. Importantly, these relationships vary across development levels and design paradigms -- yet most prior literature reports findings from urban areas that are outliers by global standards. Planners need a better empirical base for evidence-informed practice in under-studied regions, particularly the rapidly urbanizing Global South. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.01411&r=ene |
| By: | Carlos Esquivel (Rutgers University) |
| Abstract: | I study the impact of giant oil field discoveries on default risk. I document that interest rate spreads of emerging economies increase by 1.3 percentage points following a discovery of median size. I develop a sovereign default model with investment, three-sector production, and oil discoveries. Following a discovery, borrowing and investment increase. Capital reallocates from manufacturing toward oil and non-traded sectors, increasing the volatility of tradable income. Borrowing increases default risk and higher volatility increases the risk premium, both of which increase spreads. Discoveries generate welfare gains of 0.44 percent. Insurance against low oil prices increases these gains to 0.60. Select number of author(s): : 1 |
| Keywords: | Soveriegn default, Oil Discoveries |
| JEL: | F34 F41 Q33 |
| Date: | 2024–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:rut:rutres:202404&r=ene |
| By: | De Santis, Roberto A. |
| Abstract: | We identify jointly supply chain disruptions shocks and energy supply shocks together with demand shocks using a structural BVAR with narrative restrictions. The impact of adverse supply chain disruption shocks on inflation expectations and core HICP is strong and rather persistent, while the impact is small and transitory after energy supply shocks. Supply chain disruption shocks and favourable demand shocks explain the large faction of output fluctuations in the 2020-2022 period. The dynamics of core prices and inflation expectations are instead mostly explained by supply chain disruption shocks and to a lesser extent by adverse energy supply shocks. JEL Classification: C32, E32 |
| Keywords: | energy supply shocks, inflation expectations, narrative identification, supply chain disruption shocks, SVAR |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242884&r=ene |
| By: | Kang, Gu Sang (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Hyok Jung (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kim, Jonghyuk (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Kwon, Hyuk Ju (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Park, Eunbin (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Yeo Joon, Yeo Joon (Pusan National University) |
| Abstract: | The U.S. has taken a leading role in global discussions, not only in addressing major economic and trade issues but also in formulating cooperative measures on the international stage. Consequently, understanding the U.S. position and response strategies for each critical issue arising from external shocks is essential. This understanding holds significant importance in shaping Korea's mid- to long-term foreign economic strategy. By comprehending the U.S. position and response strategies, particularly regarding major issues, this study aims to derive Korea’s future trade strategies with the U.S. and develop cooperation plans with the U.S. As a result of conducting research under these objectives, the following cooperation strategies between South Korea and the United States have been derived. First, in the context of supply chain restructuring, South Korea should consider expanding local investment and production in the semiconductor and battery sectors within the U.S. close collaboration between the government and companies is essential to maximize national interests. It is crucial for our companies to take advantage of the tax incentives and other regulatory incentives offered by the U.S. government when entering the U.S. market, and our government should provide diplomatic support for these efforts. Regarding digital trade, South Korea should actively participate in international discussions led by the U.S. to set standards for essential infrastructure in the global digital transformation, such as advanced communication networks like 5G and 6G. Further-more, South Korea should actively lead discussions within the IPEF on the Trade Facilitation and Digital Commerce Working Group to overcome limitations within the KORUS FTA's digital trade provisions and collaborate with participating countries to develop a roadmap for digital trade norms. In the area of climate change mitigation, South Korea and the U.S. should strengthen their cooperation by promoting joint research in environmentally friendly, low-carbon technologies such as hydrogen production and utilization, fuel cells, carbon capture, utilization, and storage (CCUS), and energy storage devices. Additionally, both countries should collaborate on producing related products. Furthermore, South Korea should proactively engage with the U.S. in discussions related to climate change policies that the U.S. and the EU are considering. (the rest omitted) |
| Keywords: | Korea-U.S. cooperation; Global Supply Chain; Digital Trade; Climate Change |
| Date: | 2023–12–28 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2023_045&r=ene |
| By: | Nicola Francescutto |
| Abstract: | I employ household-level data over 2006-2017 to quantify the impact of retirement on gasoline consumption. Based on a fuzzy regression discontinuity design, I show that gasoline consumption declines by 32-36 percent on average over my different specifications. The reduction reaches 59-66 percent when I restrict the sample to single-person households. I further find that the probability to use any gasoline decreases by 5-6 percent at retirement (13-16 percent for single-person households). These findings suggest that demographic trends represent an important driver of CO2 emissions as- sociated with private mobility in developed countries. |
| Keywords: | gasoline consumption; retirement effect; Household expenditure survey; fuzzy regression discontinuity design |
| JEL: | C21 C23 D12 Q4 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:irn:wpaper:24-01&r=ene |
| By: | Karen McGuinness |
| Abstract: | While climate change was largely tackled by government policies in the past, central banks are increasingly grappling with the risks climate change poses. They are evaluating their operational policies to reflect these risks and the transition to a net-zero economy. This paper explores the trade-offs and considerations central banks face. |
| Keywords: | Central bank research; Climate change; Financial markets |
| JEL: | D53 E58 E63 G32 Q Q54 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bca:bocadp:23-31&r=ene |
| By: | LIN Kexin; KIMURA Yosuke; INOUE Kotaro |
| Abstract: | This study uses proprietary data on environmental and social issue engagement in Japan to examine institutional investors’ selection criteria and the effects of engagement on the environmental and social performance of companies. The results indicate that institutional investors engage with companies that align with their monitoring motivations, exhibit relatively good capital efficiency, and demonstrate good governance practices. Additionally, environmental engagements lead to the adoption of long-term CO2 emission targets and a reduction in companies' CO2 emissions. Social and governance engagement increased the representation of women on corporate boards. These results indicate the presence of differences in the effects of engagements across different themes. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:23091&r=ene |
| By: | Avotra Narindrajanahary; Olivia Ricci |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:tep:tepprr:rr23-11&r=ene |
| By: | Schöpper, Yannick; Digmayer, Claas; Bartusch, Raphaela; Ebrahim, Ola; Hermens, Sarah; Nejabat, Razieh (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Steireif, Niklas; Wendorff, Jannik; Jakobs, Eva-Maria; Lohrberg, Frank; Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Mütze-Niewöhner, Susanne; Reicher, Christa; Böschen, Stefan |
| Abstract: | Current developments such as increasing energy demands and the integration of rising shares of renewable energies pose significant challenges for existing distribution networks based on alternating current (AC). Recent literature discusses the suitability and potential advantages of direct current (DC) to meet such demands. The focus here is technically driven, for example, looking at technological readiness assessments. What is missing in these considerations is a model that examines the readiness of such DC technologies developed in niches from the viewpoint of Transition Studies. Therefore, this study draws on the Multi-Level Perspective (MLP) and Strategic Niche Management (SNM) literature to draft an approach of a Niche Readiness Level (NRL) Model. Using a multi-method approach, we identified key socioeconomic mechanisms that influence the maturation of DC technologies towards temporal and spatial market diffusion. Moreover, we stress potential benefits of the Niche Readiness Level Model with special regard to theoretical and practical implications. |
| JEL: | A11 A14 |
| Date: | 2023–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2023_011&r=ene |
| By: | Kohnert, Dirk |
| Abstract: | The African continent is increasingly becoming a battleground in the race between superpowers for access to critical minerals needed for the 'Green Revolution', such as rare earth minerals (REE). Companies from China, the USA and Russia play a major role. In most cases, critical minerals are mined by international mining companies supported by their governments and organizing complex global value chains. So far, China has dominated supply chains and has secured mining contracts across sub-Saharan Africa (SSA). Currently, China produces 58% of all REEs worldwide. It is the main importer of minerals from Africa, with mineral exports from sub-Saharan Africa to China totalling USD 10 bn in 2019. Its dominance of the global rare earths market is rooted in politics, not geography. Rare earths are neither that rare nor that concentrated in China. Beijing has adopted a strategy of imports, dumping and control of rare earths that is hardly consistent with WTO rules. Therefore, in June 2022, a newly founded 'Minerals Security Partnership', consisting of the USA, the EU, Great Britain and other Western industrialized countries, invited mineral-rich African countries to counter Chinese dominance. These included resource-rich countries such as South Africa, Botswana, Angola, Mozambique, Namibia, Tanzania, Zambia, Uganda and the Democratic Republic of Congo. The West's push became even more urgent after Beijing imposed export controls on the strategic metals gallium and germanium in July 2023, sparking global fears that China could be next to block exports of rare earth or processing technology. Because African markets are small, they are forced to rely on foreign financing. However, so far, foreign direct investment in rare earth production has confirmed the 'pollution haven' hypothesis about the environmentally harmful effects of FDI flowing into the affected countries. Although the full potential of rare earths in SSA has remained largely untapped due to low exploration, the dark side of the energy transition is becoming increasingly visible. These include pollution of soil, air and water as well as inadequate disposal of toxic residues and intensive water and energy use, occupational and environmental risks, child labour and sexual abuse as well as corruption and armed conflicts. In August 2023, Nigeria, Africa's largest economy, suspended certain illegal Chinese mining activities within its borders, including the activities of Ruitai Mining Company due to its involvement in illegal titanium ore mining. Namibia and the DR Congo followed suit. |
| Keywords: | terres rares; transition énergétique; réchauffement climatique; pollution; marchés émergents; Afrique subsaharienne; UE; Minerals Security Partnership; Afrique du Sud; Nigeria; RD Congo; études africaines; |
| JEL: | D24 D43 D52 E23 F18 F23 F51 F63 F64 L13 L61 L63 L72 N17 N57 Q33 Q53 Z13 |
| Date: | 2024–01–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119767&r=ene |
| By: | Idrees Khawaja (Pakistan Institute of Development Economics); Zehra Gardezi (Pakistan Institute of Development Economics); Mohammad Shaaf Najib (Pakistan Institute of Development Economics); Maryam Akhtar Khan (Pakistan Institute of Development Economics) |
| Abstract: | Free parking is a subsidy to car owners in the sense that motorists undervalue the cost of driving resulting in car use beyond the optimal level. This imposes several costs on society in the form of traffic congestion, urban sprawl, greater consumption of energy, and pollution. Evidence suggests that paid parking reduces car use, yet the policy response to more cars on the roads has been to increase the number of parking spaces – thus instead of demand management, the focus is on augmenting the supply. Parking spaces are developed on valuable urban land that has competing uses, hence there should be a limit on land that can be allocated to parking – pricing the parking land will determine the limit. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pid:rrepot:2023:4&r=ene |
| By: | Sivakumar, Marimuthu |
| Abstract: | India is a large developing country of 1.2 billion people, that is, nearly 17 percent of the world's population. A large proportion of this population continues to live in rural areas and depends heavily on agriculture and forestry for its livelihood which is needed the green healthy environment and climate. India's geography and climate are as varied as the country. The Himalayas mark the northern boundaries, the Thar Desert the Western, a 7500 km densely populated coastline along the peninsula, and a heavily monsoon-dependent economy, all make India vulnerable to the effects of climate change. Area of dry land would increase by 11 per cent in the coming years due to climate change. 1.8 billion People would live in countries with absolute water scarcity and the hardest hit would be the rain-fed agriculture which covers 96 per cent of all cultivated land in Sub-Sahara Africa, 87 per cent in South America and 61 per cent in Asia, and the climate variability would aggravate loss of land productivity. Recognising that climate change is global challenge, India is ¬actively engaging in multilateral negotiation in the UN Framework Convention on Climate Change, in a positive, constructive and forward- looking manner. In this perspective India launched a National Action Plan on Climate Change in 2008. |
| Keywords: | India- Climate Change- Action Plan- Green Economy- National Mission for Green India |
| JEL: | Q50 Q54 Q57 Q58 |
| Date: | 2023–12–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119591&r=ene |
| By: | Shinsuke KYOI (Research Institute for Humanity and Nature); Kengo IWATA (Kyoto Institute of Economic Research, Kyoto University); Yoshiaki USHIFUSA (Faculty of Economics, The University of Kitakyushu) |
| Abstract: | The purpose of this study is to investigate local citizens' recognition of offshore wind power and to evaluate their preferences for offshore wind turbines in four prefectures in Japan, namely, Akita, Chiba, Fukuoka, and Nagasaki, where is promoted areas of offshore wind power. Although the development of offshore wind power is an important measure for Japan to achieve a decarbonized society by 2050, local opposition is one of the main barriers to promoting offshore wind power. This study conducts an online survey and choice experiment with 2400 respondents from the four prefectures. The survey reveals that 55% of respondents agree with the promotion of offshore wind power. Those who opposes the offshore wind power concerns about the durability of turbines and future removal plans. Moreover, the mixed logit model shows that people prefer a greater distance from turbines, a larger number of turbines but not too many, and less impact on marine ecosystems. The model also shows the heterogeneous preferences among individuals and prefectures. Furthermore, the ordered logit model demonstrates that those who recognize the possible contributions of offshore wind turbines are likely to accept the development of offshore wind turbines while those who are concerned about the negative impact of turbines on the marine landscape and removal plans seem to oppose the turbines. The study highlights the importance of tailoring offshore wind farm strategies to local concerns to effectively build consensus among stakeholders. |
| Keywords: | Social acceptance; Offshore wind power; Preference heterogeneity; Choice experiment; Carbon neutral |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:kyo:wpaper:repec:kyo:wpaper:1101&r=ene |
| By: | Ximeng Fang (University of Oxford); Lorenz Goette (University of Bonn); Bettina Rockenbach (University of Cologne); Matthias Sutter (Max Planck Institute for Research on Collective Goods, University of Cologne, University of Innsbruck); Verena Tiefenbeck (Friedrich-Alexander Universität Nürnberg-Erlangen, ETH Zurich); Samuel Schoeb (University of Bamberg); Thorsten Staake (University of Bamberg, ETH Zurich) |
| Abstract: | Behavioral policy often aims at influencing behavior by mitigating biases due to, e.g., imperfect information or inattention. We study how this is affected by the simultaneous presence of multiple biases arising from different sources, through a field experiment on resource conservation in an energyand water-intensive everyday activity (showering). One intervention, shower energy reports, primarily targeted knowledge about environmental impacts; another intervention, real-time feedback, primarily targeted salience of resource use. We find a striking complementarity. While only the latter induced significant conservation effects when implemented in isolation, each intervention became more effective when implemented jointly. This is consistent with predictions from a theoretical framework that highlights the importance of targeting all relevant sources of bias to achieve behavioral change. |
| Keywords: | behavioral public policy, pro-environmental behavior, limited attention, information provision, real-time feedback, policy interactions |
| JEL: | D83 D90 Q41 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:mpg:wpaper:2023_13&r=ene |
| By: | Mahdi Nohekhan; Mohammadmahdi Barzegar |
| Abstract: | Given the move towards industrialization in societies, the increase in dynamism and competition among companies to capture market share, raising concerns about the environment, government, and international regulations and obligations, increased consumer awareness, pressure from nature-loving groups, etc., organizations have become more attentive to issues related to environmental management. Over time, concepts such as green marketing have permeated marketing literature, making environmental considerations one of the most important activities of companies. To this end, this research examines the impact of green marketing strategy on brand awareness (case study: food exporting companies). The population of this research consists of 345 employees and managers of companies like Kalleh, Solico, Pemina, Sorbon, Mac, Pol, and Castle, from which 182 individuals were randomly selected as the sample using Cochran's formula. This research is practical, and the required data have been collected through a survey and a questionnaire. The research results indicate that (1) green marketing strategy significantly affects brand awareness. (2) Green products have a significant positive effect on brand awareness. (3) Green promotions have a significant positive effect on brand awareness. (4) Green distribution has a significant positive effect on brand awareness. (5) Green pricing has a significant positive effect on brand awareness. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.02042&r=ene |
| By: | Latino, Carmelo |
| Abstract: | This paper investigates stock market reaction to greenwashing by analyzing a new channel whereby companies change their names to green-related ones (i.e., names that evoke green and sustainable sentiments) to persuade the public that their activities are green. The findings reveal a striking positive stock price reaction to the announcement of corporate name changes to green-related names only for companies not involved in green activities at the time of the announcement. However, over an extended period of time, companies unrelated to green activities experience substantial negative abnormal returns if they fail to align their operational focus with the new name after the change. |
| Keywords: | Corporate Social Responsibility, Sustainable Investments, Greenwashing, Corporate Name Change |
| JEL: | M14 G24 G11 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewp:280965&r=ene |
| By: | Rowland, Neil; McVicar, Duncan; Vlachos, Stavros; Jahanshahi, Babak; McGovern, Mark E.; O’Reilly, Dermot |
| Abstract: | Extensive evidence shows exposure to ambient PM2.5 is associated with a wide range of poor health outcomes. But few studies examine genuinely long-run pollution exposures in nationally representative data. This study does so, exploiting longitudinally-linked Census data for Northern Ireland, linked to annual average PM2.5 concentrations at the 1km grid-square level from 2002-2010, exploiting complete residential histories. We show strong unconditional associations between PM2.5 exposure, self-rated general health, disability, and all available (eleven) domain-specific health measures in the data. Associations with poor general health, chronic illness, breathing difficulties, mobility difficulties, and deafness are robust to extensive conditioning and to further analysis designed to examine sensitivity to unobserved confounders. |
| Keywords: | Long-term exposure to ambient air pollution, PM2.5, population health, linked Census data, neighbourhood fixed effects, Oster method for unobserved confounding |
| JEL: | I10 I18 Q53 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:qmsrps:202401&r=ene |
| By: | Souad Lajili Jarjir (IRG - Institut de Recherche en Gestion - UPEC UP12 - Université Paris-Est Créteil Val-de-Marne - Paris 12 - Université Gustave Eiffel); Martin Lebelle; Syrine Sassi |
| Date: | 2022–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03428710&r=ene |
| By: | William Brock; Anastasios Xepapadeas |
| Abstract: | This paper puts forth a growth model that takes into account the fact that the economy is embedded in a finite Earth. Economic activity causes greenhouse gas (GHG) emissions into the atmosphere and uses services from the biosphere. There are two main messages from the analysis: First, R&D in technologies that reduce GHG emissions and inputs from the biosphere must be ramped up rapidly. Second, in view of the fact that the top 10% of the world's inhabitants have roughly 76% of the world's wealth, consumption that causes emissions and uses inputs from the biosphere must decrease rapidly. |
| Keywords: | growth, limits, biosphere, population dynamics, impact inequality, biosphere saving technology |
| JEL: | O44 J13 Q01 |
| Date: | 2024–01–16 |
| URL: | http://d.repec.org/n?u=RePEc:aue:wpaper:2402&r=ene |
| By: | Alexandre Mathieu (SOURCE - SOUtenabilité et RésilienCE - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - IRD [France-Nord] - Institut de Recherche pour le Développement) |
| Abstract: | The realm of green jobs presents a fertile ground for understanding the intersecting pathways between sustainable transition and the labor market. We have crafted a bibliometric dataset centered on this concept, amassing 414 articles from the Scopus and Web of Science databases, following a laid down protocol, PRISMA, spanning the period from 1995 to 2022. This endeavor aims to depict the dynamics, themes, and conceptual approaches shaping the discourse on green jobs. The dataset, structured around 13 descriptive variables such as authors, keywords, and cited references, is made available to researchers, institutions, and decision-makers to provide insight into the academic debates on ecological transition through the lens of employment, especially in the wake of a green economy. The potential for reutilizing these data is expansive. They can serve as a foundation for comparative analyses with the media and institutional portrayals of green jobs. Furthermore, the dataset can be enriched by integrating other forms of literature, such as books, chapters, or conference proceedings, while retaining the existing structure. This expansibility paves the way for a multidisciplinary and multilingual exploration, thereby enhancing the richness and diversity of possible analyses. |
| Abstract: | Le domaine des emplois verts représente un terrain fertile pour comprendre les chemins croisés entre la transition soutenable et le marché du travail. Nous avons élaboré un ensemble de données bibliométriques centré sur ce concept, accumulant 414 articles des bases de données Scopus et Web of Science, suivant un protocole établi, PRISMA, couvrant la période de 1995 à 2022. Cette entreprise vise à dépeindre la dynamique, les thèmes et les approches conceptuelles qui façonnent le discours sur les emplois verts. L'ensemble de données, structuré autour de 13 variables descriptives telles que les auteurs, les mots-clés et les références citées, est mis à disposition des chercheurs, des institutions et des décideurs pour fournir un aperçu des débats académiques sur la transition écologique à travers le prisme de l'emploi, notamment dans le sillage d'une économie verte. Le potentiel de réutilisation de ces données est vaste. Elles peuvent servir de base pour des analyses comparatives avec les représentations médiatiques et institutionnelles des emplois verts. De plus, l'ensemble de données peut être enrichi en intégrant d'autres formes de littérature, telles que des livres, des chapitres ou des actes de conférence, tout en conservant la structure existante. Cette expansibilité ouvre la voie à une exploration multidisciplinaire et multilingue, améliorant ainsi la richesse et la diversité des analyses possibles. |
| Keywords: | Bibliometrics, Green Job, Green collar job, Green work, Green employment, Green economy, Sustainable development, Bibliometrics Green Job Green collar job Green work Green employment Green economy Sustainable development, Bibliométrie, Emploi vert, Travail vert, Travail soutenable, Économie verte, Développement soutenable |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04338772&r=ene |
| By: | KEIDA Masayuki; TAKEDA Yosuke |
| Abstract: | Environmental, social, and governance (ESG) investing in equity markets has surged for corporate firms, whose managerial efforts are disclosed and evaluated in favor of environmental, social, or governance-oriented issues. Since managerial information is costly for individual investors to acquire and process, “exit or voice†activities of speculators through market monitoring is necessary to reduce uncertainty associated with firms’ managerial performance (Holmstrӧm and Tirole, 1993; Tirole, 2006). This study examines Japan’s Government Pension Investment Fund (GPIF), which announced that it selected some ESG indices for Japanese equities and commenced passive investment tracking them. We estimate the effects of several announcements made by GPIF on the equity prices of the monitored firms, empirically showing the effects of informational efficiency in market monitoring on share prices in a case of positive screening through GPIF’s choice over the ESG indices based on public information. The panel regressions indicate that the GPIF’s soft voice influencing the corporations’ pro-ESG managerial efforts was loud enough to cause temporary increases in stock prices. However, the transient effects of the GPIF’s market monitoring are contradictory in that the effects are absent for the corporations whose sustainability reports reveal information on their positive ESG-related performances. Our finding that the ESG ratings accurately reflect the content of sustainability reports is supportive of the GPIF’s objectives of positive screening based on public information in choosing the ESG indices. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24002&r=ene |