|
on Energy Economics |
| By: | Kathrine von Graevenitz; Elisa Rottner |
| Abstract: | Climate change is the result of global market failure and remedying the situation requires effective policy action. Climate policies often increase energy prices thereby affecting all actors in the economy. Concerns about competitiveness impacts of unilateral policies hamper the development of effective policies. We provide causal evidence on how industrial plants respond to electricity price increases. Our research design uses exogenous variation in German electricity prices in combination with detailed administrative data on German manufacturing plants. We find that rising electricity prices led German manufacturing plants to significantly reduce their electricity procurement with an own-price elasticity of -0.4 to -0.6 on average and substantial variation across procurement levels. They also induced industrial users to replace electricity procurement by electricity generated onsite contributing to a decentralization of electricity generation. We find no statistically significant negative effects on competitiveness indicators. |
| Keywords: | Electricity use, firm performance, climate policy |
| JEL: | D22 L60 Q41 Q48 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_504&r=ene |
| By: | Gautam Gowrisankaran; Ashley Langer; Mar Reguant |
| Abstract: | Natural gas has replaced coal as the dominant fuel for U.S. electricity generation. However, U.S. states that regulate electric utilities have retired coal more slowly than others. We build a structural model of rate-of-return regulation during an energy transition where utilities face tradeoffs between lowering costs and maintaining coal capacity. We find that the current regulatory structure retires only 45% as much coal capacity as a cost minimizer. A regulated utility facing a carbon tax does not lower carbon emissions immediately but retires coal similarly to the social planner. Alternative regulations with faster transitions clash with affordability and reliability goals. |
| JEL: | L51 L94 Q48 Q50 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32088&r=ene |
| By: | Rizzati, Massimiliano; Ciola, Emanuele; Turco, Enrico; Bazzana, Davide; Vergalli, Sergio |
| Abstract: | Green preferences are often regarded as crucial factors in facilitating the energy transition. However, it is unclear if they can alone propel an economy towards achieving a net-zero emissions outcome. In this study, we expand the multi-agent integrated assessment model MATRIX by incorporating considerations on implicit emissions in the decision-making process of consumers and firms. To evaluate the efficacy of those green preferences, we construct a range of experiments encompassing varying degrees of pro-environmental attitudes. Those scenarios are then compared to more conventional incentive-based climate policies, such as a carbon tax and a Cap-and-Trade mechanism, with and without a subsidy for abatement technology, each implemented at different stringency. Our findings indicate that only exceptionally high and unrealistic values of green preferences for both firms and consumers can achieve a net-zero outcome in the absence of an active policy. Moreover, the most favorable scenario in terms of environmental, economic and distributional outcomes emerges from a carbon tax accompanied by a moderate subsidy. Without subsidy, policies entail mainly negative economic and distributional consequences as firms transfer the increased costs to consumers. |
| Keywords: | Environmental Economics and Policy, Research Methods/ Statistical Methods |
| Date: | 2024–02–15 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:339796&r=ene |
| By: | Bunch, Davis S.; Chakraborty, Debapriya; Brownstone, David |
| Abstract: | To reduce greenhouse gas (GHG) emissions from the transportation sector, government programs and regulations are encouraging a transition from internal combustion engine vehicles (ICEVs) to battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs), collectively referred to as plug-in electric vehicles (PEVs). California has targets of having 5 million PEVs and Fuel Cell Electric Vehicles on the road by 2030, and 100% of new vehicle sales being zero-emission by 2035. An increasing diversity of vehicle types, paired with a growing demand for PEVs, has major implications for vehicle miles traveled (VMT), air pollution, and emissions. To better understand what is likely to happen, researchers predict household vehicle preference and VMT by vehicle body and fuel type. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Vehicle Choice, Vehicle Miles Traveled, Joint Discrete Choice Model |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt42g2n4nz&r=ene |
| By: | Nicola Campigotto; Marco Catola; Andrè Cieplinksi; Simone D'Alessandro; Tiziano Distefano; Pietro Guarnieri; Till Heydenreich |
| Abstract: | There is currently no consensus among scholars on how to achieve a just low-carbon transition. To address this issue, this paper subjects a macrosimulation model to an extensive sensitivity analysis and then fits random forests to the simulation results to identify policy combinations that can reduce carbon emissions while promoting income equality. Our find- ings indicate that interventions aimed at supporting low-income groups result in an increase in these groups’ energy demand and emissions, and that this negative effect should be off-set through a faster deployment of renewable energy sources and measures that redistribute income away from top earners. Our analysis also confirms the importance of well-known policies such as carbon taxation and working time reduction. On the other hand, we do not find energy efficiency to be crucial in achieving inequality and emission reduction goals. |
| Keywords: | ecological macroeconomics; just transition; inequality; scenario discovery |
| JEL: | Q56 Q57 C63 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pie:dsedps:2024/304&r=ene |
| By: | Rangrang Zheng (University of Hawaii); Greg Schivley (Princeton University); Patricia Hidalgo-Gonzalez (University of California San Diego); Matthias Fripp (Environmental Defense Fund); Michael J. Roberts (University of Hawaii) |
| Abstract: | Solar and wind power are cost-competitive with fossil fuels, yet their intermittent nature presents challenges. Significant temporal and geographic differences in land, wind, and solar resources suggest that long-distance transmission could be particularly beneficial. Using a detailed, open source model, we analyze optimal transmission expansion jointly with storage, generation, and hourly operations across the three primary interconnects in the United States. Transmission expansion offers far more benefits in a high-renewable system than in a system with mostly conventional generation. Yet while an optimal nationwide plan would have more than triple current interregional transmission, transmission decreases the cost of a 100% clean system by only 4% compared to a plan that relies solely on current transmission. Expanding capacity only within existing interconnects can achieve most of these savings. Adjustments to energy storage and generation mix can leverage the current interregional transmission infrastructure to build a clean power system at a reasonable cost. |
| Keywords: | Decarbonization, renewable energy, intermittency, transmission, trade, optimization |
| JEL: | Q42 Q52 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2024-2&r=ene |
| By: | Kathrine von Graevenitz; Elisa Rottner; Philipp M. Richter |
| Abstract: | Relative prices determine competitiveness of different locations. In this paper, we focus on the role of regulatory differences between Germany and other EU countries which affect the shadow price of carbon emissions. We calibrate a Melitz-type model, extended by firms’ emissions and abatement decisions using data on aggregate output, trade and emissions. The parameter estimates are estimated from the German Manufacturing Census. The quantitative model allows us to recover a measure of how regulatory stringency evolved in the EU and Germany in terms of an implicit carbon price paid on emissions. This price reflects energy and carbon prices in addition to command-and-control measures and decreased from 2005 to 2019 in most sectors – both in Germany and other EU countries. The trend is more pronounced in Germany than in the rest of the EU. In counterfactual analyses, we show that this intra-EU difference has substantially increased German industrial emissions. Had the EU experienced the same decrease in implicit carbon prices as Germany, German emissions would have been substantially lower. Germany has increasingly become a pollution haven. |
| Keywords: | Carbon emissions, climate policy, manufacturing, international trade, heterogeneous firms |
| JEL: | F18 H23 L60 Q56 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_503&r=ene |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Christophe Cassen (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) |
| Abstract: | Since COP26, four Just Energy Transition Partnerships (JETP) political declarations have promised to mobilize billions of dollars to stimulate the energy transition in emerging markets. It is too early to judge the success of these four pilot partnerships. Implementation revealed many challenges, including the risk of being used for geopolitical purposes, hidden conditions, loss of confidence, and excessive debt. To mitigate these risks, JETPs should report results under the Paris Agreement transparency mechanisms, adopt widely accepted social and environmental standards, and reduce the share of sovereign debt in the package of measures while increasing the share of private finance. |
| Keywords: | JETP, Energy transition, Emerging countries, Climate financing, North-South cooperation |
| Date: | 2024–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04412457&r=ene |
| By: | Murphy, Colin; Ro, Jin Wook |
| Keywords: | Engineering, Social and Behavioral Sciences, Low Carbon Fuel Standard, transportation policy, policy making |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt5wf035p8&r=ene |
| By: | OECD |
| Abstract: | The report is the first comprehensive, India-specific analysis of urban passenger transport emissions using a life-cycle perspective. The life-cycle assessment (LCA) approach offers insights into how policy choices affect greenhouse gas emissions throughout vehicle and infrastructure development and use. The analysis shows that Indian cities must prioritise measures that shift private vehicle users to public transport. In addition, a transition to electric buses – preferably powered by 100% renewable energy – is needed. The report highlights the critical importance of analysing and understanding emissions levels through all life-cycle stages of transport services when taking public policy and investment decisions. |
| Date: | 2023–08–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:itfaac:120-en&r=ene |
| By: | Juan S. Mora-Sanguinetti; Andrés Atienza-Maeso |
| Abstract: | The achievement of an environmentally sustainable growth model is a fundamental issue in economic analysis and is a substantial part of the public debate. However, a different question is at what pace this concern has 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” and climate change (renewable energies, sustainable transportation, pollution and energy efficiency) over the period 2000-2022 for Spain (at the national and regional levels) and France. This research thus constructs a database in panel data format. The results show that regulation is diverse by subject matter, reflects significant regional diversity and has increased over time, especially in more recent years. From the comparison of French and Spanish regulations on renewable energy matters, it can be concluded that Spain shows a greater volume (and a greater regional disaggregation) in its regulation. 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 conflicts). |
| Keywords: | Energy Efficiency, Renewable Energies, Sustainable Transport, Pollution, Regulation, Regulatory Complexity, Text Mining |
| JEL: | K32 Q5 O13 O44 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:bfr:banfra:937&r=ene |
| By: | Michela Boldrini; Valentina Bosetti; Salvatore Nunnari |
| Abstract: | Negative Emissions Technologies (NETs) — a range of methods to remove carbon dioxide from the atmosphere— are a crucial innovation in meeting temperature targets set by international climate agreements. However, mechanisms which undo the adverse consequences of short-sighted actions (as NETs) can fuel substitution effects and crowd out virtuous behaviors (e.g., mitigation efforts). For this reason, the impact of NETs on environmental preservation is an open question among scientists and policy-makers. We model this problem through a novel restorable common-pool resource game and use a laboratory experiment to exogenously manipulate key features of NETs and assess their consequences. We show that crowding out only emerges when NETs are surely available and cheap. The availability of NETs does not allow experimental communities to either conserve the common resource for longer or accrue higher earnings and makes the earnings distribution more unequal. |
| Keywords: | climate crisis, environmental sustainability, carbon dioxide removal, common-pool resource, free-rider problem, laboratory experiment |
| JEL: | C92 H41 Q55 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10905&r=ene |
| By: | Bensch, Gunther; Jeuland, Marc; Lenz, Luciane; Ndiaye, Ousmane |
| Abstract: | Rural areas of sub-Saharan Africa have experienced limited progress towards the sustainable development goal of universal access to clean cooking. Energy-efficient biomass cookstoves (EEBCs) are considered a potential bridge technology, but EEBC models vary widely, and there is a lack of understanding about their real-world use implications. We conduct a randomized controlled trial in rural Senegal to compare a low-cost, locally produced stove designed to achieve fuel savings and an expensive, imported stove shown to be more efficient and emissions-reducing in the laboratory. We find that the two EEBCs perform similarly: both reduce fuel consumption but have no significant impact on cooking time and fuel collection, emissions, or objective health measures. We conclude that the technically advanced option is not cost effective for most of our sample, while the low-cost EEBC can be seen as a stop-gap solution that primarily reduces fuel use. The findings underpin the importance of customizing EEBC dissemination to local context and baseline cooking patterns. |
| Abstract: | In den ländlichen Gebieten Afrikas südlich der Sahara lassen sich nur begrenzte Fortschritte beim allgemeinen Zugang zu sauberem Kochen beobachten. Energieeffiziente Biomasse-Kochherde (EEBCs) gelten als potenzielle Brückentechnologie, EEBC-Modelle unterscheiden sich jedoch sehr, und es mangelt an Evidenz zu ihrer Effektivität in der Praxis. Diese Studie vergleicht einen kostengünstigen, lokal produzierten Herd, der auf Brennstoffeinsparung ausgelegt ist, mit einem teuren, importierten Herd, der sich im Labor als effizienter und emissionsmindernd erwiesen hat. Hierfür nutzen wir eine randomisierte, kontrollierte Studie unter Haushalten im ländlichen Senegal. Wir kommen zu dem Ergebnis, dass die beiden EEBCs ähnliche Effekte zeigen: Beide reduzieren den Brennstoffverbrauch, haben aber keinen signifikanten Einfluss auf die Kochzeit, die Dauer des Sammelns von Brennstoff, die Emissionen oder objektive Gesundheitsmessungen. Wir kommen zu dem Schluss, dass die technisch fortschrittlichere Option für die meisten Haushalte unserer Stichprobe nicht kosteneffizient ist, während die kostengünstige EEBC als Übergangslösung angesehen werden kann, die in erster Linie den Brennstoffverbrauch reduziert. Die Ergebnisse unterstreichen, wie wichtig es ist, die Verbreitungsstrategien von EEBCs auf den lokalen Kontext und lokale Kochgewohnheiten anzupassen. |
| Keywords: | Cookstoves, energy access, biomass burning, energy efficiency, technology choice |
| JEL: | C93 D12 O12 O13 Q51 Q53 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:282010&r=ene |
| By: | Diwas Paudel; Tapas K. Das |
| Abstract: | Fast-charging hubs for electric vehicles will soon become part of the newly built infrastructure for transportation electrification across the world. These hubs are expected to host many DC fast-charging stations and will admit EVs only for charging. Like the gasoline refueling stations, fast-charging hubs in a neighborhood will dynamically vary their prices to compete for the same pool of EV owners. These hubs will interact with the electric power network by making purchase commitments for a significant part of their power needs in the day-ahead (DA) electricity market and meeting the difference from the real-time (RT) market. Hubs may have supplemental battery storage systems (BSS), which they will use for arbitrage. In this paper, we develop a two-step data-driven dynamic pricing methodology for hubs in price competition. We first obtain the DA commitment by solving a stochastic DA commitment model. Thereafter we obtain the hub pricing strategies by modeling the game as a competitive Markov decision process (CMDP) and solving it using a multi-agent deep reinforcement learning (MADRL) approach. We develop a numerical case study for a pricing game between two charging hubs. We solve the case study with our methodology by using combinations of two different DRL algorithms, DQN and SAC, and two different neural networks (NN) architectures, a feed-forward (FF) neural network, and a multi-head attention (MHA) neural network. We construct a measure of collusion (index) using the hub profits. A value of zero for this index indicates no collusion (perfect competition) and a value of one indicates full collusion (monopolistic behavior). Our results show that the collusion index varies approximately between 0.14 and 0.45 depending on the combinations of the algorithms and the architectures chosen by the hubs. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.15108&r=ene |
| By: | Andrea Bastianin (University of Milan and Fondazione Eni Enrico Mattei); Elisabetta Mirto (University of Milan); Yan Qin (London Stock Exchange Group); Luca Rossini (University of Milan and Fondazione Eni Enrico Mattei) |
| Abstract: | Putting a price on carbon – with taxes or developing carbon markets – is a widely used policy measure to achieve the target of net-zero emissions by 2050. This paper tackles the issue of producing point, direction-of-change, and density forecasts for the monthly real price of carbon within the EU Emissions Trading Scheme (EU ETS). We aim to uncover supply- and demand-side forces that can contribute to improving the prediction accuracy of models at short- and medium-term horizons. We show that a simple Bayesian Vector Autoregressive (BVAR) model, augmented with either one or two factors capturing a set of predictors affecting the price of carbon, provides substantial accuracy gains over a wide set of benchmark forecasts, including survey expectations and forecasts made available by data providers. We extend the study to verified emissions and demonstrate that, in this case, adding stochastic volatility can further improve the forecasting performance of a single-factor BVAR model. We rely on emissions and price forecasts to build market monitoring tools that track demand and price pressure in the EU ETS market. Our results are relevant for policymakers and market practitioners interested in quantifying the desired and unintended macroeconomic effects of monitoring the carbon market dynamics. |
| Keywords: | Bayesian inference, Carbon prices, Climate Changes, EU ETS, Forecasting |
| JEL: | C11 C32 C53 Q02 Q50 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2024.02&r=ene |
| By: | Namasi G. Sankar; Suryadeepto Nag; Siddhartha P. Chakrabarty; Sankarshan Basu |
| Abstract: | In the context of whether investors are aware of carbon-related risks, it is often hypothesized that there may be a carbon premium in the value of stocks of firms, conferring an abnormal excess value to firms' shares as a form of compensation to investors for their transition risk exposure through the ownership of carbon instensive stocks. However, there is little consensus in the literature regarding the existence of such a premium. Moreover few studies have examined whether the correlation that is often observed is actually causal. The pertinent question is whether more polluting firms give higher returns or do firms with high returns have less incentive to decarbonize? In this study, we investigate whether firms' emissions is causally linked to the presence of a carbon premium in a panel of 141 firms listed in the S\&P500 index using fixed-effects analysis, with propensity score weighting to control for selection bias in which firms increase their emissions. We find that there is a statistically significant positive carbon premium associated with Scope 1 emissions, while there is no significant premium associated with Scope 2 emissions, implying that risks associated with direct emissions by the firm are priced, while bought emissions are not. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.16455&r=ene |
| By: | Franck Ramaharo; Fitiavana Randriamifidy |
| Abstract: | The aim of this note is to identify the factors influencing renewable energy consumption in Madagascar. We tested 12 features covering macroeconomic, financial, social, and environmental aspects, including economic growth, domestic investment, foreign direct investment, financial development, industrial development, inflation, income distribution, trade openness, exchange rate, tourism development, environmental quality, and urbanization. To assess their significance, we assumed a linear relationship between renewable energy consumption and these features over the 1990-2021 period. Next, we applied different machine learning feature selection algorithms classified as filter-based (relative importance for linear regression, correlation method), embedded (LASSO), and wrapper-based (best subset regression, stepwise regression, recursive feature elimination, iterative predictor weighting partial least squares, Boruta, simulated annealing, and genetic algorithms) methods. Our analysis revealed that the five most influential drivers stem from macroeconomic aspects. We found that domestic investment, foreign direct investment, and inflation positively contribute to the adoption of renewable energy sources. On the other hand, industrial development and trade openness negatively affect renewable energy consumption in Madagascar. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.13671&r=ene |
| By: | Ribeiro, Beatriz Couto (Technical University of Berlin (TUB) and University of Campinas (UNICAMP)); Jamasb, Tooraj (Department of Economics, Copenhagen Business School) |
| Abstract: | With the rise of renewable and distributed energy sources, electricity distribution and transmission utilities are facing increasing demand by regulators to innovate and adopt new technologies and transit to smart grids. However, these regulated natural monopolies often lack economic incentives to develop and adopt new technologies. To overcome this barrier, some regulatory authorities have introduced the so-called "innovation-stimuli" regulations to foster experimentation, technological adoption, and innovative solutions. We analyze and compare the effectiveness of two different innovation-stimuli regulations, the cost-pass through and WACC approaches, in the UK and Italy, respectively. To assess the impact of these different regulations on innovation, we use synthetic control (SC) and synthetic difference-in-differences (SDID) methods, which constitute causal inference techniques for small-n case study design and, for the first time, are employed to assess the impact of regulations on innovation outputs. Our panel data encompasses 13 European countries covering 1995 to 2013 and used smart grid projects and patent applications as dependent variables. Differently from what one might expect, not every innovation-stimuli regulation effectively supports innovation outputs. Meanwhile, cost-pass-through significantly and positively affected patent applications in the UK. In Italy, WACC did not affect patent applications, and European Commission-funded projects mostly drove the increases in smart-grid projects. |
| Keywords: | Innovation; Electricity sector; Regulation |
| JEL: | K23 O31 Q48 |
| Date: | 2024–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_007&r=ene |
| By: | Aswani, Jitendra; Raghunandan, Aneesh; Rajgopal, Shivaram |
| Abstract: | An influential emerging literature documents strong correlations between carbon emissions and stock returns. We reexamine that data and conclude that these associations are driven by two factors. First, stock returns are correlated only with unscaled emissions estimated by the data vendor, but not with unscaled emissions actually disclosed by firms. Vendor-estimated emissions systematically differ from firm-disclosed emissions and are highly correlated with financial fundamentals, suggesting that prior findings primarily capture the association between such fundamentals and returns. Second, unscaled emissions, the variable typically used in academic literature, is correlated with stock returns but emissions intensity (emissions scaled by firm size), an equally important measure used in practice, is not. While unscaled emissions represent an important metric for society, we argue that, for individual firms, emissions intensity is an appropriate measurement choice to assess carbon performance. The associations between emissions and returns disappear after accounting for either of the issues above. |
| Keywords: | carbon emissions; stock returns; trucost; estimated emissions; emissions disclosure; OUP deal |
| JEL: | D62 G23 G30 M14 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:118364&r=ene |
| By: | Jonathan 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 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. |
| Keywords: | electricity, economic development, weak link, TFP |
| JEL: | O40 O11 Q43 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10874&r=ene |
| By: | Burda, Michael C. (Humboldt University Berlin); Zessner-Spitzenberg, Leopold (TU Wien) |
| Abstract: | The existence of an environmental limit in the Solow-Swan economy changes the nature of economic growth, but does not preclude it. When atmospheric greenhouse gases reach a predetermined absolute threshold, further growth requires a permanently expanding, resource-intensive mitigation effort. If the rate of technical progress in mitigation is too low, it becomes the effective constraint on economic growth. Yet growth in both quantities and relative prices remains a robust feature of this class of economies. It also characterizes the social planner's optimum that anticipates the costs of reaching the environmental limit abruptly. |
| Keywords: | Solow-Swan growth model, Baumol cost disease, anthropogenic climate change, mitigation, price-driven economic growth, Ramsey optimal policy |
| JEL: | O44 Q01 Q54 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16771&r=ene |
| By: | Claire Borsenberger (Groupe La Poste); Helmuth Cremer (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); Denis Joram (Groupe La Poste); Jean-Marie Lozachmeur (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, CNRS - Centre National de la Recherche Scientifique); Estelle Malavolti (ENAC-LAB - Laboratoire de recherche ENAC - ENAC - Ecole Nationale de l'Aviation Civile) |
| Abstract: | We study how consumers' environmental awareness (CEA) affects the design of environmental policy in the e-commerce sector. We also examine if there is a need for regulation requiring delivery operators to reveal their emissions. We consider a model with two retailers who sell a differentiated product and two parcel delivery operators. Delivery generates CO2 emissions and their total level creates a global (atmosphere) externality. We assume that it is more expensive for the delivery operator to use less polluting technologies. We consider different scenarios reflecting the type of competition and the vertical structure of the industry. We shown that CEA mitigates the inefficiency of the equilibrium by bringing the level of emissions closer to its optimal level. This is true under perfect and imperfect competition. This efficiency enhancing effect of CEA also affects the design of emissions taxes, which leads to an amended Pigouvian rule. Under perfect competition the tax is reduced by exactly the level of CEA expressed in monetary terms. Under imperfect competition the adjustment exceeds this level. |
| Keywords: | Consumers' environmental awareness, Pigouvian rule, Emission taxes, E-commerce, Parcel delivery operators, Vertical integration |
| Date: | 2023–04–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03613363&r=ene |
| By: | Azevedo, Deven; Wolf, Hendrik; Yamazaki, Akio |
| Abstract: | This paper investigates the employment impacts of British Columbia’s revenue neutral carbon tax. Using the synthetic control method with firm-level data, we find considerable heterogeneity in employment responses to the policy. We show that firm size matters. In particular, the carbon tax had a negative impact on large emissionintensive firms, but simultaneous tax cuts and transfers increased the purchasing power of low income households, substantially benefiting small businesses in the service sector and food/clothing manufacturing. Furthermore, we find that aggregate employment was not adversely affected by the policy. Our results provide additional insight for the “job-shifting hypothesis” of revenue neutral carbon taxes. |
| Keywords: | carbon tax; employment; unilateral climate policy; firms |
| JEL: | E24 H23 J20 Q50 |
| Date: | 2023–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:117346&r=ene |
| By: | George Yunxiong Li; Simona Iammarino; |
| Abstract: | Many critical raw materials (CRMs) – including rare metals and earth elements – are essential components in renewable energy products, and they work as an irreplaceable material basis for related technological innovation. However, global CRM supply chains are subject to significant risks, posing threats to the stability of the renewable energy industry. To address the challenges, a growing emphasis in both academic and policy circles is directed to de-risking supply chains through diversification and production reshoring. In this study, we investigate the relevance of domestic CRM production as a strategic measure to hedge against global supply shocks, providing competitive advantages for local renewable energy development and innovation. We explore this issue by focusing on two core renewable energy sectors: Wind and Solar energy. Analysing data from a panel of 128 countries spanning from 2007 to 2016, we examine the impact of domestic CRM supply capabilities on the competitiveness of the RE sectors and technological innovation, while controlling for various influencing factors. Our findings show that a stable CRM supply through domestic production significantly supports downstream RE product export and patent output, protecting local RE development from global material supply shocks. Using the case of renewable energy sector, this paper introduces the concept of "material-based technological regime" and underscores the critical importance of supply chain stability for key materials in bolstering national technological advantages. It provides valuable perspectives for both businesses and policymakers. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2403&r=ene |
| By: | Costantiello, Alberto; Leogrande, Angelo |
| Abstract: | We estimate the determinants of CO2 Emissions-COE in the context of Environmental, Social and Governance-ESG model at world level. We use data of the World Bank for 193 countries in the period 2011-2020. We found that the level of COE is positively associated, among others to “Methane Emissions”, “Research and Development Expenditures”, and negatively associated among others to “Renewable Energy Consumption” and “Mean Drought Index”. Furthermore, we have applied a cluster analysis with the k-Means algorithm optimized with the Elbow Method and we find the presence of four cluster. Finally, we apply eight machine-learning algorithms for the prediction of the future value of COE and we find that the Artificial Neural Network-ANN algorithm is the best predictor. The ANN predicts a reduction in the level of COE equal to 5.69% on average for the analysed countries. |
| Date: | 2024–01–25 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:53djm&r=ene |
| By: | Sina Sahebi; Sahand Heshami; Mohammad Khojastehpour; Ali Rahimi; Mahyar Mollajani |
| Abstract: | Adaptive cruise control (ACC) is a technology that can reduce fuel consumption and air pollution in the automotive industry. However, its availability in Iran is low compared to industrialized countries. This study examines the acceptance and willingness to pay (WTP) for ACC among Iranian drivers. Data from an online survey of 453 respondents were analyzed using the Technology Acceptance Model (TAM) and an ordered logit model. The results show that perceived ease of use and perceived usefulness affect attitudes toward using ACC, which in turn influence behavioral intentions. The logit model also shows that drivers who find ACC easy and useful, who have higher vehicle prices, and who are women with cruise control (CC) experience are more likely to pay for ACC. To increase the adoption of ACC in Iran, it is suggested to target early adopters, especially women and capitalists, who can influence others with their positive feedback. The benefits of ACC for traffic safety and environmental sustainability should also be emphasized. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.17329&r=ene |
| By: | Yi Yiang; Richard S. J. Tol |
| Abstract: | In the era of sustainability, firms grapple with the decision of how much to invest in green innovation and how it influences their economic trajectory. This study employs the Crepon, Duguet, and Mairesse (CDM) framework to examine the conversion of R&D funds into patents and their impact on productivity, effectively addressing endogeneity by utilizing predicted dependent variables at each stage to exclude unobservable factors. Extending the classical CDM model, this study contrasts green and non-green innovations' economic effects. The results show non-green patents predominantly drive productivity gains, while green patents have a limited impact in non-heavy polluting firms. However, in high-pollution and manufacturing sectors, both innovation types equally enhance productivity. Using unconditional quantile regression, I found green innovation's productivity impact follows an inverse U-shape, unlike the U-shaped pattern of non-green innovation. Significantly, in the 50th to 80th productivity percentiles of manufacturing and high-pollution firms, green innovation not only contributes to environmental sustainability but also outperforms non-green innovation economically. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2401.16030&r=ene |
| By: | Jaller, Miguel PhD; Xiao, Runhua Ivan |
| Abstract: | This project identifies factors that affect three truck-related parameters: idling, searching for parking, and parking demand. These parameters are examined in communities in Kern County California that have high air pollution levels and are located near transportation corridors, industrial facilities, and logistics centers. Daytime truck idling is concentrated in and around commercial and industrial hubs, and nighttime idling is concentrated around major roads and highway entrances and exits. Truck idling, searching for parking, and parking demand correlate with shorter distances from freight-related points-of-interest such as warehouses, increased size of nearby industrial or commercial land use, and proximity to areas of dense population or income inequality. Based onthese findings, policy recommendations include targeted anti-idling interventions, improved truck parking facilities, parking systems that provide real-time availability information to drivers, provision of alternate power sources in parkingfacilities to allow trucks to turn off, cleaner fuels and technologies, enhanced routing efficiency, stricter emission standards, and stronger land-use planning with buffer zones around residential areas. |
| Keywords: | Engineering, Trucking, trucks, parking demand, engine idling, air pollution, industrial areas, underserved communities, environmental justice |
| Date: | 2023–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt9w28d01h&r=ene |
| By: | Evžen Kočenda; Michala Moravcová; Evžen Kocenda |
| Abstract: | We analyze (frequency) connectedness and portfolio hedging among U.S. energy commodities from 1997 to 2023. We show that the total connectedness increased over time, likely due to the increasing financialization of energy commodities. It fluctuates with respect to (i) different investment horizons and (ii) different periods of distress. The early stage of the Russia-Ukraine war is associated with the highest systemic risk, followed by the Covid-19 pandemic and global financial crisis (GFC). In the frequency domain, the results imply that investors perceive the greatest risk at longer investment horizons, particularly during the three major distress periods. We also show that despite it is difficult and more costly to diversify an energy portfolio during distress periods, adding natural gas seems to bring non-marginal diversification benefits. |
| Keywords: | connectedness, volatility spillovers, frequency decomposition, portfolio weights and hedge ratios, energy commodities, distress |
| JEL: | C58 F65 G15 Q34 Q41 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10889&r=ene |
| By: | R.Boucekkine (Centre for Unframed Thinking, Rennes School of Business (France), and Corresponding Member, IRES-UCLouvain); W.Ruan (Purdue University Northwest, USA); B.Zou (Corresponding author. DEM, University of Luxembourg) |
| Abstract: | We study optimal behavior under irreversible pollution risk. Irreversibility 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 being an absorbing state. The resulting non-convex optimal pollution control is therefore piecewise deterministic. First, we are able to characterize 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 pollution with the irreversibility risk than without in a neighborhood of the pollution irreversibility threshold. Third, we find 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, optimal behavior under risk, avoidability of the irreversible regime |
| JEL: | Q52 C61 D81 |
| Date: | 2024–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:ctl:louvir:2024001&r=ene |
| By: | Xi Sun; Karsten Neuhoff |
| Abstract: | We investigate policies for increasing recycling to facilitate decarbonization within the basic material sector, including market-based policies, such as carbon pricing, advanced disposal fee and minimum recycled content requirement, and non-market policies, such as product design standard. We develop an analytical model to assess the role of these policy instruments for recycling related choices of manufacturing industry, consumers, and waste management. We find that individual policy instruments can deliver some benefits in terms of emission reductions and welfare improvements, but that a package of policy instruments is necessary to reach the welfare maximum and effective scale of emission reductions and resource saving. |
| Keywords: | Industry decarbonization, market failure, high-quality recycling, policy package |
| JEL: | D62 H23 Q53 Q54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp2069&r=ene |
| By: | Sanjit Dhami; Paolo Zeppini |
| Abstract: | We consider firms’ choices between a clean technology that benefits, and a dirty technology that harms, the environment. Green firms are more suited to the clean, and brown firms are more suited to the dirty technology. We use a model derived from complexity theory that takes account of true uncertainty and increasing returns to technology adoption. We examine theoretically, the properties of the long-run equilibrium, and provide simulated time paths of technology adoption, using plausible dynamics. The long-run outcome is an ‘emergent property’ of the system, and it unpredictable despite there being no external technological or preference shocks. We describe the role of taxes and subsidies in facilitating adoption of the clean technology; the conflict between optimal Pigouvian taxes and adoption of clean technologies; the optimal temporal profile of subsidies; and the desirability of an international fund to provide technology assistance to poorer countries. Finally, we extend our model to stochastic dynamics in which firms experiment with technological alternatives, and demonstrate the existence of punctuated equilibria. |
| Keywords: | technology choice, climate change, complexity, lock-in effects, increasing returns, green subsidies, public policy, Pigouvian taxes, stochastic dynamics |
| JEL: | D01 D21 D90 H32 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10900&r=ene |
| By: | Markus Brueckner; Gabriele Ciminelli; Norman Loayza |
| Abstract: | We examine the relationship between oil price windfalls and labor market regulation empirically through panel regressions in a sample of 83 countries spanning the 1970-2014 period. We find that oil price windfall gains lead to a deregulation of the labor market in autocracies but have no effects in democracies. Windfall losses instead cause a substantial deregulation in democracies but have no effects in autocracies. We then consider possible transmission channels. Democracies appear to redistribute the rents stemming from a positive windfall by increasing government expenditures. Rent extraction and economic efficiency considerations are both plausible drivers of the deregulation following windfall gains in autocracies, as expenditures are not raised, while GDP and employment gradually increase after positive windfalls. The deregulation following windfall losses in democracies is instead consistent with the crisis-induced-reform hypothesis, as the windfall loss induce a sharp deterioration of the current account and budget balances. |
| Keywords: | oil price; windfalls; labor market; deregulation; political institutions |
| JEL: | F16 J41 O13 P11 P16 Q02 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:acb:cbeeco:2023-696&r=ene |
| By: | Lin, Fan; Xie, Danyang |
| Abstract: | We analyze China's economic growth and climate change relationship using a dynamic equilibrium model with regional disparity. Our simulation findings suggest that without intervention, China's temperatures could rise to 4.7◦C and 3.4◦C in advanced and backward regions, respectively, by mid-next century. A social planner path could limit this rise to 3.3◦C across both regions, yielding welfare benefits. However, if China adheres to the Paris Agreement's 2◦C limit without exceptional low-carbon technology advancements, significant social welfare losses could occur. |
| Keywords: | Economic Development, Climate Change, China |
| JEL: | E27 E61 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119970&r=ene |
| By: | Paul Dutronc-Postel (IPP - Institut des politiques publiques); Arthur Guillouzouic (IPP - Institut des politiques publiques); Clément Malgouyres (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique, IPP - Institut des politiques publiques); Rachel Paya (ESSEC Business School, IPP - Institut des politiques publiques); Laurent Bach (ESSEC Business School) |
| Abstract: | Présentation Qui sont les entreprises françaises qui contribuent le plus aux émissions de CO2 de l'industrie française, et quelles sont leurs caractéristiques ? Quels dispositifs de réduction des émissions de CO2 s'appliquent à elles, et selon quelles modalités ? Quel rôle insoupçonné peuvent avoir les outils fiscaux généraux, a priori sans visée environnementale ? Cette note répond successivement à ces trois questions, et propose un premier cadre d'analyse pour l'évaluation ex ante des mesures de politiques publiques à destination des entreprises. Nous documentons la distribution de l'intensité carbone dans le tissu industriel français, ainsi que les tarifications effectives du carbone auxquelles sont soumis différents types d'entreprises. Enfin, nous examinons le ciblage carbone implicite de différents dispositifs fiscaux sans visée environnementale. Résultats clés Les émissions de CO2 du secteur industriel sont extrêmement concentrées ; 10 % de la valeur ajoutée représentent 75 % des émissions de CO2. Cette forte concentration est en grande partie tirée par des effets sectoriels ; la métallurgie, la chimie, les minéraux métalliques (comme le ciment), et le papier/carton sont les secteurs les plus intenses en CO2. Deux grands régimes de tarification effective du CO2 cohabitent dans l'industrie : celle des établissements soumis au marché du carbone (SCEQE, 70 % des émissions), dont la tarification effective augmente avec le temps ; et celle des établissements hors SCEQE (30 % des émissions), gelée de 2018 à 2024. En 2019, la tarification effective du CO2 des entreprises les plus émettrices est plus faible (31€/tCO2e) que celle des entreprises les moins émettrices (47€/tCO2e). En 2022, elle est plus élevée (84€/tCO2e contre 60€/tCO2e). L'allocation de quotas gratuits, dont le volume représente, en 2022, 90 % des émissions réalisées par le secteur industriel, abaisse considérablement le poids effectif du marché carbone pour les entreprises qui y sont soumises. Par leur ciblage implicite, les dispositifs fiscaux sans visée environnementale peuvent avoir un effet sur les émissions industrielles totales. En 2019, le niveau de la contribution économique territoriale (les « impôts de production », fortement allégés dans le plan France Relance) est substantiellement plus élevé pour les 10 % des entreprises les plus intenses en CO2 (3 % de la valeur ajoutée), que pour les 10 % les moins intenses (1, 2 %). Une suppression de ces impôts bénéficie donc davantage aux entreprises très émettrices. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ipppap:halshs-04439232&r=ene |
| By: | Shin, Kiseok; Grant, Jason; He, Xi; Arita, Shawn; Sydow, Sharon; Tomlin, Hazelle; Jones, Jason |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iats23:339522&r=ene |
| By: | - |
| Abstract: | The Caribbean Community (CARICOM) member States are highly vulnerable to climate change. This vulnerability has been further exacerbated by their large debt burden, high debt servicing costs and limited fiscal space which limit the domestic financial resources available to adequately address climate change (UNDP, 2009). It is noteworthy that from 2000 and 2019 the Caribbean Community produced between 0.11 and 0.16% of global emissions (World Bank, 2023). However, despite being only minor emitters these countries find themselves on the sharp end of the impact of climate change, being increasingly vulnerable to floods, droughts, rising temperatures, rising sea-levels, hurricanes and coral bleaching etc. Furthermore, CARICOM member States2 have submitted their nationally determined contributions (NDCs) to the United Nations Framework Convention for Climate Change (UNFCCC). Whilst the Caribbean has received some measure of grant funding in support of the implementation of NDCs, the financing being offered in this regard has largely been in the form of loans, thereby leaving the subregion lagging behind in the receipt of concessionary support for its climate change adaptation and mitigation needs (Mohan, 2022). |
| Date: | 2024–01–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col095:68818&r=ene |
| By: | Roman Buchtele (Department of Regional Management and Law, Faculty of Economics, University of South Bohemia In České Budějovice) |
| Abstract: | Education for sustainable development has become a key parameter of modern higher education. The integration of the concept of sustainable development into education represents a natural consequence of the growth of environmental awareness that began in the second half of the last century. This education has also gained importance in the context of the green economy. The main aim of the study is to investigate the impact of the teaching of environmental topics and sustainable development in terms of environmental knowledge on students' decisions regarding their future professions. Furthermore, the secondary aim is to find out whether students have pro-environmental values and attitudes. The research is based on a quantitative approach, where the questionnaire was chosen as the main instrument of data collection. The questionnaire includes the tool of environmental sociology, the New Ecological Paradigm (NEP) & Human Exceptionalism Paradigm (HEP) analysis. The remaining questions are based on sub-hypotheses which draw on the theoretical part. The research results confirmed pro-environmental attitudes among university students. Basic characteristics of environmental education and the role of environmental knowledge as perceived by these students have also been described. The correlation analysis extended the findings in relation to the possible influence of environmental education on students’ decision regarding their future profession. |
| Keywords: | Education for sustainable development, Environmental knowledge, Higher education, NEP & HEP analysis, Sustainable development, Quantitative approach |
| JEL: | I20 I23 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:boh:wpaper:04_2022&r=ene |
| By: | Colmer, Jonathan Mark; Evans, Mary F.; Shimshack, Jay |
| Abstract: | Citizen complaints feature prominently in public oversight contexts. The nature and effects of complaints, however, are controversial and poorly understood. We first investigate attitudes about citizen complaints using a nationally representative survey. We document that the public believes complaints promote open, efficient, and equitable governance. We then exploit novel administrative data on over 130, 000 complaints in Texas to investigate their observed dynamic effects on regulator behavior. Empirically, complaints are associated with sharp increases in regulator monitoring and enforcement. Complaints uncover more, and more severe violations, than more standard monitoring approaches. Overall, our findings are consistent with complaints enhancing regulatory efficiency. |
| Keywords: | citizen complaints; environmental regulation; compliance; monitoring and enforcement; pollution |
| JEL: | Q58 Q53 K32 D78 |
| Date: | 2023–03–09 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:121326&r=ene |
| By: | Thiemo Fetzer; Callum Shaw; Jacob Edenhofer |
| Abstract: | Formal conceptions of state capacity have mostly focused on indirect measures of state capacity – by, for instance, using the state’s fiscal or extractive capacity as a proxy for its overall capacity. Yet, this input or extractive view of state capacity falls short, especially since cross-country empirical evidence suggests that similar levels of fiscal capacity, measured by tax revenues as a percentage of GDP, can produce starkly different outputs – both in classic economic terms and in broader terms that citizens would recognize as desirable outcomes, including quality of life, health, security, equality of opportunity, and intergenerational mobility. This paper argues that a central step towards addressing these shortcomings of the conventional view is to account for a crucial and largely ignored boundary of the state or dimension of state capacity: its capacity to gather, process, and deploy information in its conduct of fiscal policy. Specifically, we study how the presence or lack of such informational capacity constrains governments in responding to crises, such as the recent energy price shock. Our framework provides the analytical toolkit to examine how the informational boundary of the state shapes the incentives for policymakers to resort to untargeted and/or distortionary policy instruments, as opposed to targeted and non-distortionary ones, in responding to crises. The policy response to the energy crisis following the invasion of Ukraine provides the empirical context upon which we bring this theoretical framework to bear on data, though the latter can be straightforwardly extended to other recent crises. |
| Keywords: | state capacity, economic development, carbon taxation, political economy, pork-barrel politics |
| JEL: | H11 O43 D63 D73 Q48 P16 C21 C55 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10901&r=ene |
| By: | Deborah Nusche; Marc Fuster Rabella; Simeon Lauterbach |
| Abstract: | State-of-the-art scientific evidence shows that our planet is approaching several environmental and climate tipping points faster than previously expected. This means that the international community is facing a rapidly closing window of opportunity to achieve profound transformations across sectors, systems and mindsets to secure a sustainable and liveable future. What is the role of education system in enabling social change at the massive scale and pace needed for climate change mitigation? And what policy levers can they employ to build resilience and adapt to environmental challenges? This paper explores ways to rethink educational approaches in the context of climate change, focussing primarily on school education, while exploring links to other levels of education. It looks specifically at strategies to restructure foundational science education and cross-curricular learning, zooms in on the potential of place-based approaches in empowering learners for action, and concludes by identifying policy levers to increase education system resilience. |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:oec:eduaab:307-en&r=ene |
| By: | Phu Nguyen-Van; Tuyen Tiet; Quoc Tran-Nam |
| Abstract: | Although numerous studies examine the impacts of environmental compliance and innovation on a firm's economic performance, the role of export activities in this nexus has remained unanswered. In this study, we revisit the Porter hypothesis by investigating synergy strategies of dierent environmental and economic practices (i.e., environmental compliance, product innovation, process innovation and having export activities) on total factor productivity (TFP) of Vietnamese manufacturing SMEs. Our results suggest that while encouraging either product or process innovation is also essential in the environment-promoting policy, joint implementation of these two practices should be carefully considered by managers. Moreover, entering export markets positively impacts rms' productivity; complying with the domestic/local environmental standards could signicantly increase the chances for SMEs to enter the export markets |
| Keywords: | Environmental compliance; Export; Product innovation; Process innovation; Productivity; SMEs |
| JEL: | L25 M11 O12 Q55 Q56 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2024-1&r=ene |