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on Energy Economics |
| By: | Stern, Nicholas |
| Abstract: | There is growing awareness that actions by policymakers and international organizations to reduce poverty, and those to mitigate and adapt to climate change, are inextricably linked and interwoven. This paper examines relevant academic and policy literature and evidence on this relationship and explores the potential for a new form of development that simultaneously mitigates climate change, manages its impacts, and improves the wellbeing of people in poverty. First, as a key foundation, it outlines the backdrop in basic moral philosophy, noting that climate action and poverty reduction can be motivated both by a core principle based on the right to development and by the conventional consequentialism that is standard in economics. Second, it reviews assessments of the current and potential future impacts of weakly managed climate change on the wellbeing of those in poverty, paying attention to unequal effects, including by gender. Third, it examines arguments and literature on the economic impacts of climate action and policies and how those affect the wellbeing of people in poverty, highlighting the importance of market failures, technological change, systemic dynamics of transition, and distributional effects of mitigation and adaptation. Finally, the paper surveys the current state of knowledge and understanding of how climate action and poverty reduction can be integrated in policy design, indicating where further research can contribute to a transition that succeeds in both objectives. |
| Keywords: | OUP deal |
| JEL: | J1 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121231&r=ene |
| By: | Lucas Chancel (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Philipp Bothe (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Tancrède Voituriez (IDDRI - Institut du Développement Durable et des Relations Internationales - Institut d'Études Politiques [IEP] - Paris, Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement) |
| Abstract: | The triple climate inequality crisis, or in contributions, impacts and capacity to act within and between countries, is a central issue in addressing climate change. This Comment advocates for progressive wealth taxation as a viable solution to the finance gap. |
| Keywords: | climate change, inequality, taxation |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04385157&r=ene |
| By: | Kuosmanen, Natalia; Kuosmanen, Timo; Maczulskij, Terhi; Zhou, Xun |
| Abstract: | Abstract This study investigates the least-cost decarbonization pathways in the Finnish electricity generation industry in order to achieve the national carbon neutrality goal by 2035. Various abatement measures, such as downscaling production, capital investment, increasing labor and intermediate inputs are considered. The marginal abatement costs (MACs) of greenhouse gas emissions are estimated using the convex quantile regression method and applied to unique register-based firm-level greenhouse gas emission data merged with financial statement data. We adjust the MAC estimates for the sample selection bias caused by zero-emission firms by applying the two-stage Heckman correction. Our empirical findings reveal that the median MAC ranges from 0.1 to 3.5 euros per tonne of CO2 equivalent. The projected economic cost of a 90% reduction in emissions is 62 million euros, while the estimated cost of achieving zero emissions is 83 million euros. |
| Keywords: | Abatement cost, Convex quantile regression, Forward-looking assessment, Climate policy, Decarbonization pathways |
| JEL: | O44 Q43 Q51 Q52 Q54 |
| Date: | 2024–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:rif:wpaper:114&r=ene |
| By: | Raimi, Daniel (Resources for the Future); Davert, Elena; Neuenfeldt, Haley; Van Zanen, Amy; Whitlock, Zachary (Resources for the Future) |
| Abstract: | Fossil fuels are the primary contributor to global climate change, and efforts to reach net-zero emissions will require a dramatic curtailment of their extraction and use. However, fossil fuels fund public services at all levels of government, and research has not assessed whether clean energy sources can provide similar scales of revenue. In this paper, we analyze a novel dataset that we have assembled on how fossil fuels and renewable energy contribute to local governments in 79 US counties across 10 states. Revenues from fossil fuels far outweigh renewables in aggregate terms, providing more than $1, 000 per capita annually in dozens of counties. However, wind and solar in some states generate more local public revenue than fossil fuels per unit of primary energy production. In most counties that depend heavily on fossil fuels for local revenues, solar—but not wind—has the technical potential to replace existing fossil fuel revenues, but this would require dedicating implausibly large portions of developable land (in some cases, more than half) to solar. For counties with less reliance on fossil fuels, wind and solar can more plausibly replace fossil fuel revenue streams. This finding suggests that while renewable energy will provide new revenue streams for communities, fossil fuel–dependent regions will need to build new tax bases well beyond wind and solar, develop other sources of revenue, or risk a decline in public service provision. |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-01&r=ene |
| By: | Adel Ben Youssef (UCA - Université Côte d'Azur); Mounir Dahmani (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UCA - Université Côte d'Azur, UGAF - Université de Gafsa - Sidi Ahmed Zarroug) |
| Abstract: | This study examines the dynamic relationships between digitalization, environmental tax revenues, and energy resource capacity within the framework of the Environmental Kuznets Curve (EKC), focusing on their combined impact on environmental quality. It employs a cross-sectional augmented autoregressive distributed lag (CS-ARDL) approach, an advanced technique for complex panel data that is specifically designed to address issues of cross-sectional dependence and slope heterogeneity inherent in panel data analysis. The research covers 88 countries, including both low- and middle-income countries (LMICs) and high-income countries (HICs), to understand how digitalization, as a driving force of the Fourth Industrial Revolution, interacts with environmental taxation and energy resource management to affect greenhouse gas emissions. The results reveal distinct effects of environmental taxes and energy capacity on environmental quality, with marked differences between LMICs and HICs. In HICs, technological progress, especially in information and communication technology (ICT), is found to contribute significantly to environmental quality. For LMICs, the effects are less evident, and the findings suggest the need for tailored strategies in environmental policy and energy management. By providing empirical evidence on the differential impacts of digitalization and energy policies in different economic contexts, this research enriches the environmental economics discourse. It highlights the need for policy frameworks tailored to specific contexts that effectively balance economic growth with sustainable development goals, thereby providing insightful implications for achieving the Sustainable Development Goals (SDGs). |
| Keywords: | ICT, environmental taxes, energy resource capacity, environmental sustainability, developing countries, developed countries, CS-ARDL, DCCEMG, AMG |
| Date: | 2024–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04374125&r=ene |
| By: | Simshauser, P.; Newbery, D. |
| Abstract: | In Australia’s National Electricity Market (NEM), 170+ renewable and battery storage projects reached financial close from 2016-2022, totalling 24GW and $46 billion. With an investment supercycle, not all projects arrive smoothly. Some investors experienced entry frictions from system strength constraints, adverse movements in Marginal Loss Factors and network congestion. Whether these outcomes – which impacted ~20% of entrants – represented workable results in a properly functioning market due to investment error, or arose because of market design defects requiring policy attention, is an open question. An issue that NEM policy advisors are seeking to reform is the non-firm, open access regime. Policy focus is warranted. The ratio of maximum to average wind output is ~3x while solar PV is 4x. Consequently as renewable market share increases, rising levels of curtailment are predictable through excess generation and negative price events, network congestion, or both. But care must be taken with access reform because well-intended ‘intuitive policy prescriptions’ can produce the exact opposite effects by constraining REZ asset productivity, compounding complexity and slow renewable entry rates – the critical variable being the difference between average and marginal curtailment rates. Malalignment between access policy and over-the-counter forward market conventions may distort entry, raise consumer prices and harm welfare. |
| Keywords: | Renewables, Network Congestion, Curtailment, Marginal Curtailment, Renewable Energy Zones |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2363&r=ene |
| By: | ha, jongrim; Kose, Ayhan M.; Ohnsorge, Franziska; Yilmazkuday, Hakan |
| Abstract: | This paper examines the drivers of fluctuations in global inflation, defined as a common factor across monthly headline consumer price index (CPI) inflation in G7 countries, over the past half-century. We estimate a Factor-Augmented Vector Autoregression model where a wide range of shocks, including global demand, supply, oil price, and interest rate shocks, are identified through narrative sign restrictions motivated by the predictions of a simple dynamic general equilibrium model. We report three main results. First, oil price shocks followed by global demand shocks explained the lion’s share of variation in global inflation. Second, the contribution of global demand and oil price shocks increased over time, from 56 percent during 1970-1985 to 65 percent during 2001-2022, whereas the importance of global supply shocks declined. Since the pandemic, global demand and oil price shocks have accounted for most of the variation in global inflation. Finally, oil price shocks played a much smaller role in global core CPI inflation variation, for which global supply shocks were the main source of variation. These results are robust to various sensitivity exercises, including alternative definitions of global variables, different samples of countries, and additional narrative restrictions. |
| Keywords: | Oil prices; demand shocks; supply shocks; interest rate shocks |
| JEL: | E31 E32 Q43 |
| Date: | 2023–12–19 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119645&r=ene |
| By: | Lucidi, Stefano; Sörries, Bernd; Eslamimoshkenani, Mehran |
| Abstract: | Vergleichstools für Telekommunikations- und Energieprodukte sind für Verbraucher und Unternehmen unerlässlich, um fundierte Entscheidungen über ihre Telekommunikationsund Energiedienstleistungen treffen zu können. Deshalb schreiben die europäischen Richtlinien für Telekommunikation und Energie vor, dass Verbraucher Zugang zu mindestens einem unabhängigen Vergleichsinstrument haben müssen. Diese können von öffentlichen Stellen (z. B. Behörden) oder von privaten Anbietern betrieben werden. Für private Anbieter von Vergleichsinstrumenten sieht der sektorspezifische Rechtsrahmen für Telekommunikation und Energie die Möglichkeit einer Zertifizierung vor. Ziel der Studie ist es, Erfahrungen mit der Implementierung von Vergleichsinstrumenten im Telekommunikations- und Energiesektor in verschiedenen Ländern in Europa zu sammeln, um daraus Erkenntnisse für Deutschland abzuleiten. Der Schwerpunkt der Untersuchung liegt dabei auf der Motivation der Länder und Sektoren sich für ein behördliches oder zertifiziertes Vergleichsmarktinstrument zu entscheiden. |
| Abstract: | Comparison tools for telecoms and energy products are essential for consumers and businesses to make informed choices about their telecoms and energy services. That is why the European Telecoms and Energy Directives require consumers to have access to at least one independent comparison tool. These can be run by public bodies (e.g. public authorities) or private providers. For private providers of comparison tools, the sector-specific regulatory frameworks for telecoms and energy provide for the possibility of certification. The aim of the study is to gather experience with the implementation of comparison tools in the telecommunications and energy sectors in various European countries in order to derive lessons for Germany. The focus of the study is on the motivation of countries and sectors to opt for a public or certified comparison tool. |
| Keywords: | Verbraucherschutz, Verbraucherinformation, Vergleich, Telekommunikationsmarkt, Energiemarkt, Deutschland |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wikdps:280931&r=ene |
| By: | Jonathan M. Colmer; David Lagakos; Martin Shu |
| Abstract: | This paper asks whether increasing productivity in the electricity sector can yield larger long-run GDP gains than suggested by electricity’s small share of aggregate economic activity. We answer this question using a dynamic multi-sector model in which electricity is a strong complement to other inputs in production. We parameterize the model using our own new measures of electricity-sector TFP across countries. The model predicts modest long-run GDP gains from improving electricity-sector TFP, contrary to the notion that electricity is a weak link. Parameterizations that make electricity a weak link mostly require the electricity sector to be counterfactually large or unproductive. |
| JEL: | E23 O11 O41 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32041&r=ene |
| By: | Patricia Crifo (École polytechnique, CREST and E4C, France and CIRANO, Canada) |
| Abstract: | This paper examines why a growth process relying on both green innova tion and green human capital may be responsible for higher inequality within and between skills. We propose a theoretical framework and derive some em pirical observations using data from more than 2000 companies in 21 OECD countries in 2022. We discuss the policy implications of this analysis in light of the COVID-19 pandemic, which has led many governments to place green investment at the heart of their recovery plans. |
| Keywords: | Environment, Skill Supply, Innovation-driven Growth |
| JEL: | O33 Q50 J24 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2024-02&r=ene |
| By: | Salem, Leila Ben (University of Sousse); Nouira, Ridha (University of Sousse); Rault, Christophe (University of Orléans) |
| Abstract: | This paper investigates the impact of oil price variations on sectoral inflation for a sample of 10 top oil importing and exporting countries. Specifically, we analyze the effects of oil prices on the consumer price index using monthly data spanning the July 2009 to February 2021 period. Two nonlinear techniques are used to this end: The nonlinear autoregressive distributed lag approach (NARDL), and the Hansen's model (2000). Our econometric results first indicate that the effect of oil price on inflation tends to change across sectors and countries. Second, the inflationary effects of variations in oil prices are likely to affect the energy sector, such as transport and equipment, which are the most dependent on oil. Third, the effect of oil price exists for all countries, but it is stronger in oil-importing than in oil-exporting ones. Besides, the country most sensitive to the oil price level is China. |
| Keywords: | oil-importing countries, panel threshold model, NARDL, sectoral inflation, oil price, oil-exporting countries |
| JEL: | C5 Q4 Q43 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16706&r=ene |
| By: | Raoul Boucekkine (Rennes School of Business, FR); Weiha Ruan (Purdue University Northwest, US); Benteng Zou (DEM, Université du Luxembourg) |
| Abstract: | We study optimal behavior under irreversible pollution risk. Ir- reversibility comes from the decay rate of pollution sharply dropping (possibly to zero) above a threshold pollution level. In addition, the economy can instantaneously move from a reversible to an irreversible pollution mode, following a Poisson process, the irreversible mode be- ing an absorbing state. The resulting non-convex optimal pollution control is therefore piecewise deterministic. First, we are able to char- acterize analytically and globally the optimal emission policy using dynamic programming. Second, we prove that for any value of the Poisson probability, the optimal emission policy leads to more pollu- tion with the irreversibility risk than without in a neighborhood of the pollution irreversibility threshold. Third, we nd that this local result does not necessarily hold if actual pollution is far enough from the irreversibility threshold. Our results enhance the importance of the avoidability of the latter threshold in the optimal economic behavior under the irreversibility risk. |
| Keywords: | "Irreversible pollution, uncertainty, piecewise deterministic, op timal behavior under risk, avoidability of the irreversible regime." |
| JEL: | Q52 C61 D81 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:23-16&r=ene |
| By: | Can Askan Mavi (UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, GIAM - Galatasaray Üniversitesi İktisadi Araştırmalar Merkezi - GSU - Galatasaray Universitesi) |
| Abstract: | This article aims to demonstrate how a market exposed to a catastrophic event strives to find a balance between adaptation and mitigation policies through R&D strategies. Our analysis reveals that, within our framework, there exists no trade-off between adaptation and mitigation. Rather, the critical relationship exists between adaptation and pollution because adaptation (wealth accumulation) increases the growth rate of the economy, leading to a higher flow pollution due to the scale effect. We also investigate the long-run effects of pollution taxes on growth rates and the influence of the probability of catastrophic events on these outcomes. Our findings suggest that even with a higher likelihood of catastrophe, the economy can elevate its R&D endeavors, provided that the penalty rate stemming from an abrupt event remains sufficiently high and the economy confronts a risk of a doomsday scenario. Additionally, we illustrate that pollution taxes can foster heightened long-term growth, with the positive effects being more pronounced when the probability of catastrophe is elevated, assuming an adequately substantial penalty rate. Finally, we find that pollution growth can be higher with less polluting inputs due to a scale effect, a phenomenon akin to the Jevons-type paradox. |
| Abstract: | Cet article vise à démontrer comment un marché exposé à un événement catastrophique s'efforce de trouver un équilibre entre les politiques d'adaptation et d'atténuation par le biais de stratégies de R&D. Notre analyse révèle que, dans notre cadre, il n'existe pas de compromis entre l'adaptation et l'atténuation. La relation critique existe plutôt entre l'adaptation et la pollution car l'adaptation (accumulation de richesses) augmente le taux de croissance de l'économie, ce qui conduit à un flux de pollution plus élevé en raison de l'effet d'échelle. Nous étudions également les effets à long terme des taxes sur la pollution sur les taux de croissance et l'influence de la probabilité d'événements catastrophiques sur ces résultats. Nos résultats suggèrent que même avec une probabilité plus élevée de catastrophe, l'économie peut intensifier ses efforts de R&D, à condition que le taux de pénalité découlant d'un événement brutal reste suffisamment élevé et que l'économie soit confrontée au risque d'un scénario apocalyptique. En outre, nous montrons que les taxes sur la pollution peuvent favoriser une croissance accrue à long terme, les effets positifs étant plus prononcés lorsque la probabilité de catastrophe est élevée, à condition que le taux de pénalité soit suffisamment élevé. Enfin, nous constatons que la croissance de la pollution peut être plus élevée avec des intrants moins polluants en raison d'un effet d'échelle, un phénomène qui s'apparente au paradoxe de Jevons. |
| Keywords: | Schumpeterian growth, adaptation, mitigation, Uncertainty, Adaptation Au Changement Climatique |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04355910&r=ene |
| By: | Clayton, Amanda; Dulani, Boniface; Kosec, Katrina; Robinson, Amanda Lea |
| Abstract: | Initiatives to combat climate change often strive to include women’s voices, but there is limited evidence on how this feature influences program design or its benefits for women. We examine the causal effect of women’s representation in climate-related deliberations using the case of community-managed forests in rural Malawi. We run a lab-in-the-field experiment that randomly varies the gender composition of six-member groups asked to privately vote, deliberate, then privately vote again on their preferred policy to combat local over-harvesting. We find that any given woman has relatively more influence in group deliberations when women make up a larger share of the group. This result cannot be explained by changes in participants’ talk time. Rather, women’s presence changes the content of deliberations towards topics on which women tend to have greater expertise. Our work suggests that including women in decision-making can shift deliberative processes in ways that amplify women’s voices. |
| Keywords: | gender; natural resources management; natural resources; governance; women's empowerment; community forestry; decision making; poverty; capacity development; MALAWI; SOUTHERN AFRICA; AFRICA SOUTH OF SAHARA; AFRICA |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:fpr:ifprid:2232&r=ene |
| By: | Daniel de Wolf (TVES - Territoires, Villes, Environnement & Société - ULR 4477 - ULCO - Université du Littoral Côte d'Opale - Université de Lille); Yves Smeers (CORE - Center of Operation Research and Econometrics [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain) |
| Abstract: | In the current context of the ban on fossil fuel vehicles (diesel and petrol) adopted by several European cities, the question arises of the development of the infrastructure for the distribution of alternative energies, namely hydrogen (for fuel cell electric vehicles) and electricity (for battery electric vehicles). First, we compare the main advantages/constraints of the two alternative propulsion modes for the user. The main advantages of hydrogen vehicles are autonomy and fast recharging. The main advantages of battery-powered vehicles are the lower price and the wide availability of the electricity grid. We then review the existing studies on the deployment of new hydrogen distribution networks and compare the deployment costs of hydrogen and electricity distribution networks. Finally, we conclude with some personal conclusions on the benefits of developing both modes and ideas for future studies on the subject. |
| Abstract: | Dans le contexte actuel d'interdiction des véhicules à énergies fossiles (diesel et essence) adoptée par plusieurs villes européennes, la question se pose du développement des infrastructures de distribution des énergies alternatives, à savoir l'hydrogène (pour les véhicules électriques à pile à combustible) et l'électricité ( pour les véhicules électriques à batterie). Dans un premier temps, nous comparons les principaux avantages/contraintes des deux modes de propulsion alternatifs pour l'utilisateur. Les principaux avantages des véhicules à hydrogène sont l'autonomie et la recharge rapide. Les principaux avantages des véhicules alimentés par batterie sont leur prix inférieur et la large disponibilité du réseau électrique. Nous passons ensuite en revue les études existantes sur le déploiement de nouveaux réseaux de distribution d'hydrogène et comparons les coûts de déploiement des réseaux de distribution d'hydrogène et d'électricité. Enfin, nous concluons par quelques conclusions personnelles sur les avantages de développer à la fois des modes et des idées pour de futures études sur le sujet. |
| Keywords: | battery electric vehicles fuel cell electric vehicles advantages and limitations distribution costs, battery electric vehicles, fuel cell electric vehicles, advantages and limitations, distribution costs |
| Date: | 2023–09–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04367656&r=ene |
| By: | Alessia Camplomi; Harald Fadinger; Chiara Forlati; Sabine Stillger; Ulrich J. Wagner |
| Abstract: | To prevent carbon leakage induced by unilateral carbon pricing, the EU has designed a Carbon Border Adjustment Mechanism (CBAM) that taxes imports based on their carbon content. Since estimating the carbon content of imports is very complex, CBAM will be applied only to a few emissionintensive sectors. We argue that, as a consequence of its limited applicability, CBAM is unlikely to effectively eliminate leakage. We propose a simple alternative route towards leakage prevention with significantly lower information requirements and administrative burden which can be applied to all tradable sectors: the Leakage Border Adjustment Mechanism (LBAM). LBAM offsets the cost disadvantages of domestic producers relative to foreign competitors induced by unilateral carbon pricing by implementing import tariffs and, potentially, export subsidies that hold trade constant at the level before the introduction of carbon pricing. LBAM requires knowledge only about domestic product-specific output-to-emissions elasticities and import demand and export supply elasticities but does not depend upon information on the carbon content of imports. To quantify the welfare and emission effects of LBAM and to compare it to CBAM, we simulate a unilateral carbon-price increase in the EU using a granular structural trade model with 57 countries and 121 sectors. We find that LBAM is very effective in preventing leakage, while the EU CBAM is not. |
| Keywords: | Carbon Border Adjustment, Carbon leakage, Emission trading, Carbon taxation, Trade policy |
| JEL: | F13 F64 Q54 Q56 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_495&r=ene |
| By: | Alberto Botta; Danilo Spinola; Giuliano Toshiro Yajima; Gabriel Porcile |
| Abstract: | This paper studies the relationship between financial integration, external debt sustainability, and fiscal policy space in emerging and developing (EDE) countries. We do so by applying Pasinetti’s “geometry of debt sustainability” to EDE countries and analysing how it is shaped by exposure to global financial cycles. Through the lenses of Pasinetti’s theoretical framework, we study whether global finance opens “windows of opportunities” or creates more constraints for EDE countries in offering fiscal support for structural changes, including green structural transformations. This analysis is crucial for tackling the pressing issue of the climate crisis. We suggest EDE countries may face a “gridlock”. Global finance and pressures to keep external debt sustainable make them struggle to maintain vital public investment and enact counter-cyclical fiscal actions. Lack of fiscal space in turn exacerbates technological backwardness, which feeds back in the form of more binding external constraints and tighter “surveillance” by international creditors. We support our theoretical analysis with an econometric study over a sample of 55 countries from 1980-2018. Capital controls and external macroprudential policy emerge as fundamental policies enabling EDE countries to adeptly manoeuvre through debt challenges without falling into the pitfalls of stagnation and enduring technological underdevelopment. |
| Keywords: | Financial globalisation, fiscal space, structural change |
| JEL: | F65 O14 O23 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pke:wpaper:pkwp2401&r=ene |
| By: | Hailes, Oliver |
| Abstract: | Abstract International large-scale assessments (ILSAs) play an important role in educational research and policy making. They collect valuable data on education quality and performance development across many education systems, giving countries the opportunity to share techniques, organisational structures, and policies that have proven efficient and successful. To gain insights from ILSA data, we identify non-cognitive variables associated with students’ academic performance. This problem has three analytical challenges: (a) academic performance is measured by cognitive items under a matrix sampling design; (b) there are many missing values in the non-cognitive variables; and (c) multiple comparisons due to a large number of non-cognitive variables. We consider an application to the Programme for International Student Assessment, aiming to identify non-cognitive variables associated with students’ performance in science. We formulate it as a variable selection problem under a general latent variable model framework and further propose a knockoff method that conducts variable selection with a controlled error rate for false selections. |
| Keywords: | international large-scale assessment; latent variables; missing data; Model-X knockoffs; variable selection; OUP deal |
| JEL: | J1 |
| Date: | 2023–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:120985&r=ene |
| By: | Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University); Johansson-Stenman, Olof (Department of Economics, School of Business, Economics and Law, Göteborg University); Kataria, Mitesh (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Based on a tailor-made survey, we find that experts – academics and civil servants – are much more willing than citizens in Sweden to accept liberty-reducing regulations. Moreover, both citizens and experts are more supportive of regulating negative internalities (in terms of health) than negative externalities (in terms of climate change). While less liberty-reducing policy instruments receive more support, around 20 percent of citizens and experts support very intrusive measures such as non-transferable individual quotas for air travel and unhealthy foods. Both experts and citizens prefer encouraging to discouraging information provision, while experts are more positive than citizens to tax instruments. |
| Keywords: | externalities; internalities; paternalism; experts; citizens |
| JEL: | D04 D62 D91 Q58 |
| Date: | 2024–01–19 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0841&r=ene |
| By: | Newbery, D. |
| Abstract: | Ambitious plans to decarbonise electricity will require high levels of variable renewable electricity (VRE). At high VRE penetration, the surplus that cannot be exported must be curtailed (spilled). The last MW of wind capacity will be curtailed 3+ time more hours than the average, but even in efficiently designed markets, price signals for VRE investment are given by average, not marginal, curtailment, creating a “tragedy of the commons†that requires a corrective charge to restore efficiency. The paper sets out an analytical model calibrated to Ireland in 2026, showing the source of this distortion and estimates of its magnitude. |
| Keywords: | renewable electricity, marginal wind curtailment, integration costs, market failures, inertia charges |
| JEL: | H23 L94 Q28 Q42 Q48 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2353&r=ene |
| By: | Yoosoon Chang; Yongok Choi; Chang Sik Kim; J. Isaac Miller; Joon Y. Park |
| 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:een:camaaa:2024-04&r=ene |
| By: | Hailes, Oliver |
| Abstract: | Amid the Ukraine war, the energy transition has reached a critical juncture: decisions taken by key governmental or commercial actors may irreversibly threaten efforts to limit the rise in global average temperature to 1.5°C. After defining the notions of ‘energy transition’ and ‘critical juncture’, this article describes how the ‘international law of energy’ may both entrench a socio-technical regime based on fossil fuels and promote the transition towards renewable energy. These categories serve to frame several contributions to a symposium, which assist in mapping the rules, processes, and institutions that organize the decisional options of key actors as they try to drive the energy transition through this critical juncture. We conclude by recalling the practical utility of this dynamic map and the pressing need for an authoritative compass to give interpretive direction to the legal organization of the entitlements, obligations, and decisional options of key actors in reorienting energy activities to avoid the catastrophic tipping points of climate change. |
| Keywords: | OUP deal |
| JEL: | J1 |
| Date: | 2023–12–21 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121255&r=ene |
| By: | Julien Gosse; Chris CM Forman; Nicolas van Zeebroeck |
| Abstract: | Today’s world is profoundly transformed by two major revolutions. The first one is related to the sustainability transition, while the other relates to the digital transformation of our economies and societies. Recently, regions such as Europe have put the integration between these two transformations high on their agenda. A term was coined for it: the twin transition. In a nutshell, the twin transition aims at leveraging the potential of technologies such as Cloud technologies, Internet of Things (IoT) and Artificial Intelligence (AI) to tackle the sustainability transition. |
| Keywords: | Digital Transformation, Environmental Management, Sustainability Practices, Green ICT, ICT for Green |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ict:wpaper:2013/368092&r=ene |
| By: | Navarro, Adoracion M.; Camara, Jethro El L. |
| Abstract: | Given the frequent observation that the Philippine energy sector is complex, this study provides a structured review of issues in the sector. The structured review method is usually employed to systematically introduce readers to the complexities of a broad topic, such as the convolutions of a problem, the intricacies of a theme or sector, or the conjectures about a new trend or technology. The study starts with a discussion of the physical flows of energy via a Sankey diagram of energy flows in the Philippines, and then proceeds to describe the upstream oil, gas, and coal industry, the downstream oil industry, the renewable energy development industry, and the electric power industry. The discussion includes the market structure, regulatory framework, and issues in each industry. As the analysis shows, structuring the understanding of the energy sector by component industry is a useful approach to untangling the complexities of the sector. As part of the concluding remarks, the study claims that another useful approach is to look at problems in the energy sector as cross-cutting concerns or cutting across several industries, such as the energy affordability problem. All the issues identified in the study can be considered future research areas by public and private entities interested in Philippine energy sector research because all those issues are affecting the country’s energy security. Nevertheless, what may be considered as priority future research areas at present are energy affordability concerns and issues that can be addressed by amending the EPIRA. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | energy;upstream industry;downstream oil industry;renewable energy;electric power industry;energy security;energy affordability;clean energy transition |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2023-50&r=ene |
| By: | Sörries, Bernd; Wissner, Matthias |
| Abstract: | Die Umgestaltung der Stromnetze im Zuge der Energiewende erfordert den Ausbau lokaler und regionaler Netze sowie die Digitalisierung von Prozessen, basierend auf Daten, um erneuerbare Energien zu integrieren und den Anschluss von Verbrauchern wie Elektrofahrzeugen und Wärmepumpen zu ermöglichen. Auf europäischer und nationaler Ebene gewinnt das Thema Daten und daraus resultierende Geschäftsmodelle im Zusammenhang mit der Digitalisierung aller Wirtschaftsbereiche zunehmend an Bedeutung, was durch rechtliche Rahmenbedingungen wie den Data Act der EU und eine nationale Datenstrategie vorangetrieben wird. Die Datenökonomie ist dabei als umfassende wirtschaftliche Aktivität zu verstehen, die auf der Nutzung von Daten basiert, wobei die Entwicklung eines Ökosystems von Technologien, Plattformen und Marktakteuren im Fokus steht, während Daten als eigenständiges Produkt dienen und Mehrwerte generieren sollen. Die zunehmende Digitalisierung und Verfügbarkeit von Daten weltweit wird als Grundlage für die Anpassung von Prozessen und die Entwicklung von Dienstleistungen und Produkten betrachtet. Der Erfolg datengetriebener Geschäftsmodelle erfordert dabei das reibungslose Funktionieren und Zusammenspiel jeder einzelnen Komponente in der Wertschöpfungskette, wobei die Herausforderungen von der Datenerfassung bis zur Wahrung des Datenschutzes reichen. |
| Abstract: | The redesign of electricity networks as part of the energy transition requires the expansion of local and regional networks as well as the digitalization of processes based on data in order to integrate renewable energies and enable the connection of consumers such as electric vehicles and heat pumps. At the European and national level, the topic of data and the resulting business models are becoming increasingly important in connection with the digitalization of all economic sectors, which is being driven forward by legal framework conditions such as the EU Data Act and a national data strategy. The data economy is to be understood as a comprehensive economic activity that is based on the use of data, with the focus on the development of an ecosystem of technologies, platforms, and market players, while data should serve as an independent product and generate added value. The increasing digitalization and availability of data worldwide are seen as the basis for adapting processes and developing services and products. The success of data-driven business models requires the smooth functioning and interaction of every single component in the value chain, with challenges range from data collection to maintaining data protection. |
| Keywords: | Stromnetz, Intelligentes Stromnetz, Digitale Dienste, Digitale Plattform, Betriebliche Wertschöpfung, Branche, Deutschland |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wikdps:280933&r=ene |
| By: | Francisco, Kris A.; Abrigo, Michael R.M. |
| Abstract: | Electricity serves as a crucial input to many businesses and household activities. As such, the government has historically focused its efforts on expanding the populations’ access to electricity. By contrast, electricity reliability has received less attention from policymakers despite the economic disruption caused by electricity supply interruptions. This paper seeks to deepen the discussion on electricity reliability in the Philippines by providing empirical evidence on the impact of electricity supply interruptions on local economies. Our results show that frequent electricity supply interruptions lead to lower local government income due to reductions in receipts from economic enterprises, business taxes, and real estate taxes. We also found that, consequently, the local government’s ability to provide services related to housing and community development, as well as labor and employment, is constrained, placing the local population at a disadvantage. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | electricity reliability;electricity supply interruptions;local economies |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:phd:dpaper:dp_2023-49&r=ene |
| By: | Anderson, Anders (Mistra Center for Sustainable Markets (Misum)); Robinson, David (Fuqua School of Business, Duke University; Swedish House of Finance; NBER) |
| Abstract: | In a nationally representative sample of Swedes, we find asymmetric updating of climate change expectations driven by extreme weather exposure and political polarization. We use the updating of beliefs to analyse the development of the Swedish retirement system that went from offering relatively few fossil fuel exclusion funds to being dominated by them. We find that the revision of climate beliefs translates into action only for the financially sophisticated and the politically motivated. |
| Keywords: | Household Finance; Carbon Emissions; Sustainability; Exclusions; Retirement Savings |
| JEL: | G51 |
| Date: | 2024–01–22 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:hamisu:2024_015&r=ene |
| By: | Osiris Jorge Parcero; Elissaios Papyrakis |
| Abstract: | Surprisingly, there has been little research conducted about the cross-country relationship between oil dependence/abundance and income inequality. At the same time, there is some tentative evidence suggesting that oil rich nations tend to under-report data on income inequality, which can potentially influence the estimated empirical relationships between oil richness and income inequality. In this paper we contribute to the literature in a twofold manner. First, we explore in depth the empirical relationship between oil and income inequality by making use of the Standardized World Income Inequality Database; the most comprehensive dataset on income inequality providing comparable data for the broadest set of country-year observations. Second, this is the first study to our knowledge that adopts an empirical framework to examine whether oil rich nations tend to under-report data on income inequality and the possible implications thereof. We make use of Heckman selection models to validate the tendency of oil rich countries to under-report and correct for the bias that might arise as a result of this; we find that oil is associated with lower income inequality with the exception of the very oil-rich economies. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.04046&r=ene |
| By: | Heijmans, Roweno J.R.K. (Dept. of Business and Management Science, Norwegian School of Economics); Engström, Max (Dept. of Economics, Swedish University of Agricultural Sciences) |
| Abstract: | We study dynamic cap-and-trade schemes in which a policy of adjustable allowance supply determines the cap on emissions. Focusing on two common supply policies, price and quantity mechanisms, we investigate how the duration of a cap-and-trade scheme affects equilibrium emissions under its cap. More precisely, we consider the reduction in equilibrium emissions realized by shortening the duration of the scheme. We present four main results. First, the reduction in emissions is positive and bounded from below under a price mechanism. Second, the reduction in emissions is bounded from above under a quantity mechanism. Third, these upper and lower bounds coincide when the price and quantity mechanism are similar. Fourth, we identify sufficient conditions for which the reduction in emissions is strictly negative under a quantity mechanism. We quantify our theoretical results for the European Union, the world’s largest cap-and-trade scheme to use a quantity mechanism; effects on cumulative EU emissions range from trivial to substantial. |
| Keywords: | Emissions trading; market-based emissions regulations; policy design |
| JEL: | E61 H23 Q58 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2024_002&r=ene |
| By: | Martin Feldkircher; Viktoriya Teliha |
| Abstract: | In this paper, we employ a keyword-assisted topic model to quantify the extent of climate-related communication of central banks. We find evidence for a significant increase in climate-related speeches by central banks, which address the topic mostly in parallel with topics on financial stability, payment innovations, and the banking sector. Price stability concerns play a minor role. Finally, we examine factors that can explain the extent of green communication by central banks. Controlling for macroeconomic and climate-related variables, we identify two external factors that can prompt central banks to prioritize climate research on their agenda: First, peer pressure, measured by membership of a working group on green financing, increases green communication. Second, a high degree of governmental climate engagement, reflected by the extent of national climate laws, is positively related to green communication by central banks. Whether the central bank has an implicit or explicit sustainability mandate, however, does not explain the extent of green communication. |
| Keywords: | central banking, climate change, narrative analysis, topic modelling |
| JEL: | E58 E61 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:een:camaaa:2024-03&r=ene |
| By: | Sam Huckstep (Center for Global Development); Helen Dempster (Center for Global Development) |
| Abstract: | The green transition will generate an enormous demand for workers. This paper reviews demand for, and supply of, skills relevant to the green transition in five countries in the Global South and five in the Global North. It focuses on the installation and maintenance workforce needed in two sectors: solar photovoltaic panels and heat pumps. It finds that in almost all of the 10 countries studied, supply of the necessary skilled workers is unlikely to meet demand. In particular, Global North countries, which must cut more emissions sooner, face challenges in obtaining sufficient workers against a backdrop of ageing populations. If green transition targets are to be met, migration is likely to be needed as a complement to domestic training and reskilling. Given that the shortage of green-skilled workers is global, however, migration must be accompanied by support for training and retaining workers at home. |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:cgd:ppaper:318&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: | Seltene Erden; Energiewende; Klimawandel; Umweltverschmutzung; Schwellenländer; Subsahara-Afrika; EU; Minerals Security Partnership; Südafrika; Nigeria; DR Kongo; Afrikastudien; |
| JEL: | D24 D43 D52 E23 F13 F18 F23 F51 F63 F64 L13 L61 L63 L72 N17 N57 Q33 Q53 Z13 |
| Date: | 2024–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119844&r=ene |
| By: | Kaestner, Kathrin; Kruse, Lisa; Schwarz, Antonia; Sommer, Stephan |
| Abstract: | In diesem Artikel untersuchen wir die Verteilungswirkungen der CO2-Bepreisung auf Emissionen in den Sektoren Wärme und Verkehr für Deutschland. Von Ökonom/-innen oft als Leitinstrument einer erfolgreichen und effizienten Klimapolitik betrachtet, wird dieses Preisinstrument unter anderem aufgrund von Bedenken hinsichtlich hoher und ungleicher Kostenbelastungen nur zögerlich vorangetrieben. Anhand von Haushaltsdaten der Einkommens- und Verbrauchsstichprobe sowie einem Mikrosimulationsmodell untersuchen wir die Kostenbelastung privater Haushalte für verschiedene Preishöhen und Entlastungsmaßnahmen. Neben der bereits häufig untersuchten Rückverteilungsvariante der Pro-Kopf-Pauschale analysieren wir insbesondere die Effekte einer Strompreissenkung sowie erstmalig einer einkommensgestaffelten Rückverteilung und einer Pro-Haushalt-Pauschale. Über die aus der Literatur bekannten regressiven Verteilungseffekte einer CO2-Bepreisung ohne Rückverteilung hinaus zeigen unsere Ergebnisse, dass eine Strompreissenkung weniger progressiv als eine Pro-Kopf-Pauschale und eine einkommensgestaffelte Rückverteilung am progressivsten wirkt. Eine Pro-Haushalt-Pauschale könnte Einpersonenhaushalte im Vergleich zu einer Pro-Kopf-Pauschale stärker entlasten, birgt jedoch das Risiko, Anreize für eine größere Wohnfläche pro Person zu schaffen. Während kaum Unterschiede in der CO2-Preis-Kostenbelastung zwischen Haushalten auf dem Land und der Stadt erkennbar sind, zeigen sich anhand der Energieausgabenstruktur und Geräteausstattung Haushalte, die bereits vor einer CO2- Bepreisung zu den vulnerablen Gruppen gehören. Auch wenn der CO2-Preis an alle Haushalte ein wichtiges Signal sendet, ihren Energieverbrauch effizient und emissionsarm zu gestalten, deuten diese Ergebnisse an, dass vulnerable Haushalte neben einer entlastenden Rückverteilung gezielt in ihrem Anpassungsprozess unterstützt werden sollten. |
| Keywords: | Verteilungswirkung, CO2-Preis, Umverteilung |
| JEL: | D30 H23 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwimat:281197&r=ene |
| By: | Evgenii Monastyrenko (DEM, Université du Luxembourg); Pierre M. Picard (DEM, Université du Luxembourg) |
| Abstract: | Since the beginning of the war between Russia and Ukraine in 2022, Western countries have been discussing and then implementing new trade sanctions against Russian fossil fuels. This paper quantifies such policies’ trade and welfare effects using a general equilibrium model with 92 countries and 65 intermediate products and sectoral linkages. The paper breaks down the effects of the bans on gas, crude and refined oil, and coal, and discusses the impact of alternative coalitions of sanctioning countries. In the most stringent case, the model predicts welfare losses of about 16.8% in Russia and 0.42% in the sanctioning countries. These losses are very heterogeneous across sanctioning countries. The OECD countries have an important role as their participation in sanction policies significantly influences expected outcomes in Russia. Meanwhile, should only EU countries implement fossil fuel sanctions, their welfare losses are predicted to be 3.3% on average |
| Keywords: | trade shocks, sanctions, welfare outcomes. |
| JEL: | F13 F14 F17 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:luc:wpaper:23-19&r=ene |
| By: | Davi-Arderius, Daniel (University of Barcelona & Chair of Energy Sustainability, Barcelona Institute of Economics (IEB), Spain. Copenhagen School of Energy Infrastructure (CSEI), Copenhagen Business School, Denmark); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Rosellon, Juan (Centro de Investigación y Docencia Económicas, Mexico; German Institute for Economic Research (DIW Berlin), Germany; Center for Energy Studies, Rice University, USA; University of Barcelona & Chair of Energy Sustainability, Barcelona Institute of Economics (IEB), Spain.) |
| Abstract: | The 2022 energy crisis highlighted the dependence of the European electricity sector on imported natural gas. The European Union adopted measures to reduce gas consumption with peak shaving, energy efficiency, and accelerating the adoption of renewables. We investigate a well-known operational but under-researched issue related to integration of renewables, i.e. the need for conventional generation to ensure system operation requirements (inertia, frequency stability or voltage control) in highly decarbonized systems, which is essential for power system reliability. We analyze the rescheduled supply in Spain in the day-ahead market to respect network constraints, namely ‘redispatching’. Most of the activated volumes are synchronous generators (combined cycle or coal), while an equivalent volume of scheduled renewables (wind) is curtailed to balance the system. These actions have an annual cost of nearly 0.5b€, higher CO2 emissions, and reduce the savings in gas consumption. We also estimate how dispatched volumes evolve under programs that target demand or promote renewables. The Spanish case anticipates similar scenarios in other countries and in the EU. Our main conclusion is that some conventional generators are needed for safe operation of the system and RES and countries need to carefully assess whether to disconnect them from the network. Moreover, solving grid congestions is a necessary but not sufficient for efficient integration of renewables. Grid operators should increase digitalization investments and implement advanced grid planning and operation to anticipate operational constraints. |
| Keywords: | Renewables; Decarbonization; Generation mix; Redispatching; Renewable curtailment; Synchronous generators; Day-ahead market; Network constraints; Gas crisis; System operator; Smart grids; Digitalization |
| JEL: | L51 L94 Q41 Q42 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_003&r=ene |
| By: | Jonathan Colmer; Suvy Qin; John Voorheis; Reed Walker |
| Abstract: | This paper uses administrative tax records linked to Census demographic data and high-resolution measures of fine small particulate (PM2.5) exposure to study the evolution of the Black-White pollution exposure gap over the past 40 years. In doing so, we focus on the various ways in which income may have contributed to these changes using a statistical decomposition. We decompose the overall change in the Black-White PM2.5 exposure gap into (1) components that stem from rank-preserving compression in the overall pollution distribution and (2) changes that stem from a reordering of Black and White households within the pollution distribution. We find a significant narrowing of the Black-White PM2.5 exposure gap over this time period that is overwhelmingly driven by rank-preserving changes rather than positional changes. However, the relative positions of Black and White households at the upper end of the pollution distribution have meaningfully shifted in the most recent years. |
| Keywords: | air pollution, income, environmental inequality, decomposition |
| Date: | 2024–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1974&r=ene |
| By: | Sheybanivaziri, Samaneh (Dept. of Business and Management Science, Norwegian School of Economics); Le Dréau, Jérôme (Laboratoire des Sciences de l’Ingénieur pour l’Environnement (LaSIE), La Rochelle University); Kazmi, Hussain (Dept. of Electrical Engineering, KU Leuven) |
| Abstract: | Due to the increase in renewable energy production and global socioeconomic turmoil, the volatility in electricity prices has considerably increased in recent years, leading to extreme positive and negative price spikes in many electricity markets. Forecasting (the risk of) these prices accurately in advance can enable risk-informed decision-making by both consumers and generators, as well as by the grid operators. In this work, focusing on day-ahead markets, we review recent developments in how price spikes are defined, as well as which explanatory factors and methodologies have been used to forecast them. The paper identifies seven categories of influencing factors, which come with over 30 sub-classifications that can cause price spikes. In terms of methodologies, probabilistic models are being increasingly utilized to capture uncertainty in the price forecast. The review uncovers a wide range in all of these choices as well as others, which makes it difficult to compare methods and select best practices for predicting price spikes. |
| Keywords: | Spikes; Electricity markets; Day-ahead market; Point forecast; Probabilistic forecasts |
| JEL: | C00 C10 C53 |
| Date: | 2024–01–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2024_001&r=ene |
| By: | Kimon Keramidas (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, LPSC - Laboratoire de Physique Subatomique et de Cosmologie - IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Adrien Bidaud (LPSC - Laboratoire de Physique Subatomique et de Cosmologie - IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | The steel sector represents a growing share of global carbon dioxide (CO 2) emissions and is perceived as a hardto-abate sector in the drive towards economy-wide decarbonisation. We present a model detailing steel demand and multiple steel production pathways within a larger global multi-regional energy system simulation model, projecting material, energy and emissions flows to 2100. We examine decarbonisation levels and options under different assumptions on climate policy, technologies and steel demand patterns, and study low-carbon options in the production of hydrogen as a steel decarbonisation vector. Global steel demand increases at a decelerated pace compared to the past two decades (+65 % in 2050 compared to 2020), driven by substantial increases in the underlying socioeconomic conditions. Climate policies lead to a limited positive feedback effect on steel demand (+21 % in 2050) due a faster equipment turnover and higher electrification, which could be overcompensated by energy saving and material efficiency measures. Increased recycling and strong electrification (up to 63 % of production in 2050) are projected as key levers towards decreasing emissions, made possible thanks to the increasing availability of steel scrap. Strong climate policies would be needed to push the steel sector to decarbonise fully, with electrification, carbon capture, biomass and hydrogen all contributing. Carbon capture would be necessary to reach net-zero emissions in the second half of the century. |
| Keywords: | Iron and steel, Climate mitigation, Industry decarbonisation, Energy system model, Integrated assessment model |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04383385&r=ene |
| By: | Simshauser, P. |
| Abstract: | Scaling-up Variable Renewable Energy will face critical bottlenecks vis-a-vis requisite transmission hosting capacity. Network developments must navigate the complexity of encroaching on private land, risk disturbing sites of cultural significance, compete with other environmental (i.e. biodiversity) objectives, and endure backlash from directly affected communities. Transmission is costly and post-pandemic supply-chain constraints are sending equipment costs higher. Given time and cost risks, existing transmission networks and successful augmentations need to function at their outer operating envelope. In this article, a Renewable Energy Zone (REZ) is examined by comparing static and real-time dynamic line ratings. Historically, static line ratings in the Queensland region of Australia’s National Electricity Market reflected the still, hot conditions that characterised critical event maximum demand days. Widespread take-up rates of rooftop solar PV has shifted maximum (grid-supplied) demand to the late-afternoon when wind speeds are rising, which also provides thermal cooling to transmission lines. Optimisation modelling suggests a shift from static to dynamic line ratings for a reference 275kV radial REZ in Queensland can increase wind hosting capacity from ~1700MW to more than 2800MW with limited change in the asset base. Dynamically adjusting Frequency Control Ancillary Services further increases VRE hosting capacity. |
| Keywords: | Renewable Energy Zones, Dynamic Line ratings, Frequency Control Ancillary Services, Variable Renewable Energy |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2362&r=ene |
| By: | Newbery, D. |
| Abstract: | The target-consistent price of carbon for an electricity sector decarbonizing through massive variable renewable electricity (VRE) depends sensitively on the VRE penetration level, as the marginal curtailment of VRE rises rapidly beyond a certain level. This paper develops a simple linear model to illustrate the relation between the shadow carbon price (SPC) and VRE penetration and calibrates it for the island of Ireland’s 2026 target VRE penetration of 55%. The SPC rises rapidly with increased VRE investment beyond a certain point, and can be used to direct mitigating investment in storage, interconnectors, and other flexibility options. The SPC for the final efficient portfolio will be the target-consistent carbon price for electricity that can help judge the appropriateness of the original target level of VRE penetration. |
| Keywords: | social cost of carbon, variable renewable electricity, marginal curtailment |
| JEL: | H23 L94 Q28 Q42 Q48 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2361&r=ene |
| By: | Frédéric Ghersi (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); Adam Poupard (X - École polytechnique, 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); Julien Lefevre (AgroParisTech, 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) |
| Date: | 2023–12–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04384918&r=ene |
| By: | Ergen, Timur; Schmitz, Luuk |
| Abstract: | Decarbonization requires the winding down of - economically - fully viable, if not highly prosperous, lines of economic activity. Different from past episodes of industrial restructuring revolving around the managed decline of sunset industries, accelerating climate change requires reallocation away from economic activities where the metaphorical sun is still shining. Firms, owners, workers, regions, and polities structurally rely on these sources of prosperity and have interwoven their past and future lives with them. We argue that this problem has created a space for state actors to experiment with vertical industrial policies to manage the reallocation of resources from polluting to non-polluting activities. We illustrate this dynamic by investigating the least-likely case of the European Union, a polity heavily tilted towards market governance. European climate policymakers, we argue, have incrementally moved away from the primacy of regulatory, market-making tools and have introduced a plethora of vertical instruments to shift resources away from climate-harming fields. This experimentation with vertical policies unfolds against the backdrop of a thirty-year institutional legacy of single market-oriented policy in the energy field. |
| Abstract: | Dekarbonisierung erfordert die Abwicklung und Restrukturierung von - wirtschaftlich - überlebensfähigen, wenn nicht sogar prosperierenden Wirtschaftszweigen. Anders als in früheren industriellen Restrukturierungsprozessen, bei denen es um die kontrollierte Herunterskalierung von 'Sunset-' oder 'Problemindustrien' ging, macht die Beschleunigung des Klimawandels eine Umverteilung weg von wirtschaftlichen Aktivitäten erforderlich, über denen die metaphorische Sonne noch scheint. Unternehmen, Kapitaleignerinnen und Kapitaleigner, Arbeitnehmerinnen und Arbeitnehmer, Regionen und Staaten bleiben strukturell auf diese Aktivitäten angewiesen und haben ihr Leben mit ihnen verwoben. Wir argumentieren, dass dieses Problem einen Raum für staatliche Akteure geschaffen hat, mit vertikalen industriepolitischen Maßnahmen zu experimentieren, um die Umverteilung von Ressourcen von umweltverschmutzenden zu nicht umweltverschmutzenden Aktivitäten zu befördern. Wir veranschaulichen diese Dynamik anhand einer Fallstudie der Europäischen Union, ein institutionelles Gefüge, das traditionell stark auf marktwirtschaftliche Steuerung ausgerichtet ist. Wir argumentieren, dass sich die europäische Klimapolitik schrittweise vom Primat der regulatorischen, marktwirtschaftlichen Instrumente entfernt und eine Fülle von vertikalen Instrumenten eingeführt hat, um den Ressourcenentzug aus klimaschädlichen Bereichen zu ermöglichen. Dieses Experimentieren mit vertikalen Politikinstrumenten vollzieht sich vor dem Hintergrund eines 30-jährigen institutionellen Erbes marktorientierter Politik im Energiesektor. |
| Keywords: | climate change, cohesion policy, European Union, green transition, industrialpolicy, regional restructuring, Energiewende, Europäische Union, Industriepolitik, Klimawandel, Kohäsionspolitik, regionaler Strukturwandel |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:mpifgd:281202&r=ene |
| By: | Nida Çakır Melek; Musa Orak |
| Abstract: | Mitigating climate change is critically linked to reducing an economy’s reliance on fossil energy. This paper examines U.S. energy dependence, measured by its factor share, using a neoclassical framework in a systematic way. We propose substitution as a simple, explicit economic mechanism for climate change mitigation and understanding energy-saving technical change in terms of observed factor quantities. We show that with time-varying capital equipment and energy substitutability, changes in observed inputs alone can account for most of the variations in the income share of energy over the last 60 years. Advancing the accessibility and quality of capital equipment as well as integrating the dynamic substitutability between energy and capital equipment into the design of climate policies can help economies adapt and achieve environmental policy goals. |
| Keywords: | elasticity of substitution; energy; climate change; technological change; Capital-skill complementarity |
| JEL: | E13 E23 E25 J24 Q41 Q42 Q54 Q55 |
| Date: | 2023–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedkrw:97654&r=ene |
| By: | Guiqiang Shi (NKU - Nankai University); Dehua Shen (NKU - Nankai University); Zhaobo Zhu (Audencia Business School) |
| Abstract: | This paper explores the herding towards carbon neutrality in the Chinese stock market. We find that herding towards carbon neutrality does dynamically exist in the Chinese stock market. Specifically, herding is pronounced during the bear markets and market stress periods such as the post-COVID-19 period. There is a size effect for the herding behavior. Investor attention could significantly decrease the magnitude of herding. Our results hold in various robustness tests. This paper provides some important implications on the style investing, fads, and carbon neutrality. |
| Keywords: | Herding, Carbon neutrality, Investor attention, Cross-sectional volatility |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04348526&r=ene |
| By: | Antoine Bouët (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Erica Perego (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Vincent Vicard (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Mathieu Fouquet (Commissariat général au développement durable - Ministère de l'Ecologie, du Développement durable et du Transport); Alexandre Godzinski (Commissariat général au développement durable - Ministère de l'Ecologie, du Développement durable et du Transport); Frédéric Ghersi (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); Sébastien Jean (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM] - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université); William l'Heudé (Direction Générale du Trésor); Vincent Aussilloux (France Stratégie); Romain Schweizer (France Stratégie); Christophe C. Gouel (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique, UMR PSAE - Paris-Saclay Applied Economics - AgroParisTech - Université Paris-Saclay - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Paul Malliet (OFCE - Observatoire français des conjonctures économiques (Sciences Po) - Sciences Po - Sciences Po); François Langot (CEPREMAP - Centre pour la recherche économique et ses applications - ECO ENS-PSL - Département d'économie de l'ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres, GAINS - Groupe d'Analyse des Itinéraires et des Niveaux Salariaux - UM - Le Mans Université); Aude Pommeret (USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc, France Stratégie); Fabien Tripier (Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres, CEPREMAP - Centre pour la recherche économique et ses applications - ECO ENS-PSL - Département d'économie de l'ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Les conséquences économiques et environnementales des politiques françaises de transition énergétique doivent s'envisager dans le cadre d'une économie ouverte. Tout d'abord, le rythme des efforts et les modalités de la décarbonation de l'activité économique sont en partie dictés au niveau européen, comme dans le cas du marché de quotas d'émission pour les industries hautement émissives. Mais surtout, l'Accord de Paris inscrit l'effort français au sein d'une variété d'engagements nationaux de décarbonation, tant en termes d'ambition que d'instruments mis en œuvre pour y parvenir. Cette diversité des efforts et instruments au niveau international contribue à déterminer les effets économiques des choix faits en matière de politiques climatiques adoptées au niveau européen et français. Ce rapport propose un tour d'horizon synthétique de cette dimension internationale des politiques de transition énergétique. En dépit d'éléments communs, notamment leur objectif final de réduction de l'empreinte carbone de l'activité économique, les politiques climatiques des différents pays sont hétérogènes, qu'il s'agisse de leur ambition – à savoir le niveau de leurs engagements en termes de décarbonation – ou des politiques (prix, réglementations, subventions ou crédits d'impôt) mises en œuvre. Il est dès lors illusoire de tenter de réduire les effets de cette hétérogénéité à une métrique commune de l'effort de chaque pays, comme le serait un équivalent prix des mesures réglementaires ou incitatives en place dans les différents pays. |
| Keywords: | changement climatique, Compétitivité, Transition Energétique, Politique environmentale |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04248556&r=ene |
| By: | Pollitt, M. G. |
| Abstract: | Locational marginal prices (LMPs) are an important design feature of several well-developed electricity markets, particularly in the US. They involve the calculation of energy prices which reflect congestion and losses at particular nodes in the electricity network. They have been hotly debated in Australia and Great Britain, but not implemented so far. In this paper we explore whether and how European countries should adopt LMPs. We consider the concept of locational prices and their use in economics and the theory and evidence on nodal pricing. We discuss key unanswered questions in the literature about nodal pricing before suggesting alternative actions to improve locational signals in the electricity system in Europe, including via the smarter use of LMPs. We conclude that while the theory and modelling behind LMPs is strong, their wider theoretical rationale is less clear cut and the evidence on their impact in use is surprisingly weak. |
| Keywords: | LMPs, nodal pricing, electricity markets |
| JEL: | L94 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2352&r=ene |
| By: | Niedrig, Nicolas (Technische Universität Berlin and BBH Consulting AG, Berlin, Germany); Giehl, Johannes (Department of Economics, Copenhagen Business School); Jahnke, Philipp (BBH Consulting AG, Berlin, Germany); Müller-Kirchenbauer, Joachim (Technische Universität Berlin) |
| Abstract: | Renewable hydrogen is a crucial element of the energy transition towards climate neutrality. A key aspect of the development of a hydrogen economy is a suitable market design. Public and science discuss aspects like generation, consumption sectors, and infrastructure in detail. However, the discussion of the design options for the hydrogen market is insufficient. The current discussion does not cover different possibilities of the final market states. Thus, this paper focuses on options for the future hydrogen market design. <p> The paper presents a two-step approach to identify market designs. First, a literature review and morphological analysis using the electricity and gas market as references provide the basic elements and values of the options. Second, three different infrastructure scenarios for Germany provide the basis for expert interviews to derive suitable market designs. <p> The analysis results in seven elements that are crucial for the future hydrogen market design. The market design should cover the elements marketplace, trading period, price formation, cost components, price orientation, prequalifications, and geographical coverage. The interviews show that over-the-counter trading and, with increasing regional coverage and more participants, stock exchange trading will be part of the market. The implementation of the stock market requires sufficient market liquidity of the seller’s market dominated by potential generation costs. Further aspects of an exchange in combination with prequalifications would be higher transparency and access to information. These aspects could positively influence the development of the hydrogen economy. |
| Keywords: | Renewable hydrogen; Market design; Hydrogen economy; Energy policy; Power-to-gas |
| JEL: | K20 L10 L50 N54 N74 O24 O25 Q21 Q27 Q41 Q42 |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_004&r=ene |
| By: | Kohnert, Dirk |
| Abstract: | The European Union (EU) finds itself in a critical need for rare earths, particularly the refined products essential for the production of electric cars, turbines, and other technological applications. However, the refining process is not only energy-intensive but also poses significant environmental risks. Consequently, local communities, as evidenced by instances in Spain and Portugal, vehemently oppose having such operations in their vicinity, advocating a "beggar thy neighbour" policy. The EU currently relies heavily on China, which controls the majority of global processing, commanding 90% of all rare earths and 60% of lithium. In response to these challenges, the EU took a crucial step in November 2023 by reaching a preliminary agreement on the European Critical Raw Materials Act (CRMA). This legislative initiative aims to enhance and diversify the EU's supply of critical raw materials (CRM), foster the circular economy, fortify Europe's strategic autonomy, and explore alternatives to mitigate dependence. Recent transnational crises, including disruptions to supply chains during the COVID-19 pandemic and Russia's invasion of Ukraine, underscore the imperative of secure supply chains across all economic sectors. These crises also underscore the significant influence wielded by major emerging economies, notably the BRICS countries (Brazil, Russia, India, China, and South Africa), which dominate key global supply chains, including those for critical raw materials (CRMs). Russia plays a pivotal role as one of the world's largest suppliers of palladium (40% of global supply), the second-largest supplier of platinum (13%) and nickel (12%), and a substantial contributor of aluminium and copper. Furthermore, Russia possesses the potential to emerge as a major player in the rare earths market due to its extensive reserves. The country also accounts for a considerable share of the EU's acquisitions, including palladium (41%), platinum (16%), cobalt (5%), and lithium (4%). Notably, Russia serves as the primary EU source for platinum group metals processing (iridium, platinum, rhodium, ruthenium; 40%), phosphate rock extraction (20%), lithium processing (4%), and scandium processing (1%). To attain greater independence in external CRM provision, the EU must make significant investments in its mining and processing facilities. However, mining represents merely the initial phase; subsequent steps involve the separation of rare earth elements (REE) from oxides, refining, and alloy forging a complex, highly specialized, multi-stage process. In this regard, relative newcomers like Europe lag behind, as China has solidified its dominant position in each phase through a concerted, long-term industrial strategy supported by state subsidies. |
| Keywords: | terres rare; transition énergétique; changement climatique; pollution; marchés émergents; autonomie stratégique; Russie; UE; BRICS; Allemagne; France; Italie; USA; Chine; Minerals Security Partnership; Critical Raw Materials Act; politique industrielle; |
| JEL: | D24 D43 D52 E23 F13 F18 F23 F51 F63 F64 L13 L61 L63 L72 N14 N54 Q33 Q53 Z13 |
| Date: | 2024–01–27 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119984&r=ene |
| By: | Kurani, Kenneth |
| Keywords: | Social and Behavioral Sciences, electric vehicles, zero emission vehicles, transition, policy |
| Date: | 2024–01–23 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8tm9q1zh&r=ene |
| By: | Corina Saman |
| Abstract: | The purpose of this paper is to use different quantile models to quantify the effect of economic growth on environmental quality measured by GHG emissions. For this purpose, panel quantile regression models were used. This study used data from World Bank for 28 developing countries for the 2003-2019 period. The results shows that the effect of GDP growth on GHG emissions is a positive effect for all quantiles and is significantly lower for the lower quantiles ( |
| Keywords: | GHG emissions, Economic Growth, Energy consumption, Financial development index, Panel quantile models |
| JEL: | Q56 O57 C23 C51 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:rjr:wpiecf:231001&r=ene |
| By: | Hakan Yilmazkuday (Department of Economics, Florida International University) |
| Abstract: | This paper estimates the pass-through of different shocks into different U.S. prices that are important for policy makers. The investigation is based on a structural vector autoregression model, where quarterly data are used. The empirical results depict oil price pass-through, exchange rate pass-through, import-price pass-through, and producer price pass-through into import prices, producer prices, and consumer prices for the U.S. economy. Policy implications suggest that achieving and sustaining consumer price stability highly depend on monitoring the developments in oil prices, followed by import prices and producer prices. |
| Keywords: | Pass-Through, Oil Prices, Exchange Rates, Import Prices, Producer Prices, Consumer Prices |
| JEL: | E31 F31 Q43 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:2401&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: | rare earths; energy transition; climate change; pollution; emerging markets; Minerals Security Partnership; Sub-Saharan Africa; EU; South Africa; Nigeria; DR Congo; African Studies; |
| JEL: | D24 D43 D52 E23 F13 F18 F23 F51 F63 F64 L13 L61 L63 L72 N17 N57 Q33 Q53 Z13 |
| Date: | 2024–01–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119745&r=ene |