|
on Energy Economics |
| By: | Gutierrez-Lythgoe, Antonio |
| Abstract: | This study addresses the analysis of residential demand in Spain, focusing on various energy goods such as electricity, natural gas, and fuels for personal vehicles. Employing an approach based on the QUAIDS model and using data from the 2022 Household Budget Survey from the Spanish National Statistics Institute, the potential endogeneity of expenditure is considered to ensure robust results. The findings reveal that electricity exhibits an inelastic demand, strengthening its status as an essential good, while natural gas and fuels for personal vehicles are characterized by elastic demand, classifying them as luxuries based on expenditure elasticities. Furthermore, disparities in price and expenditure elasticities are documented concerning various sociodemographic realities, with the most pronounced differences observed in households headed by unemployed individuals. |
| Keywords: | Electricity; Natural Gas; Fuels; QUAIDS; Residential Demand |
| JEL: | C30 Q20 Q30 Q40 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120229&r=ene |
| By: | Michele Loberto (Bank of Italy); Alessandro Mistretta (Bank of Italy); Matteo Spuri (Bank of Italy) |
| Abstract: | Mitigating the negative impact of climate change implies a drastic reduction in greenhouse gas emissions: moving towards the net-zero target requires, among other things, a dramatic improvement in the energy efficiency of residential buildings, which account for 12.5 per cent of greenhouse gas emissions in Italy. This paper estimates the extent to which energy efficiency labels are capitalized into house prices. We find that the most energy-efficient houses sell at a 25 per cent premium over the least efficient ones. Our contribution is relevant for two reasons. First, we provide granular estimates of the impact of energy labels on house prices in Italy and show that the energy efficiency premium is significantly heterogeneous across provinces due to differences in climate conditions and regulatory frameworks. Second, energy labels play a key role and are used as a benchmark for several policies, and the heterogeneity in the energy efficiency premium may call for more targeted public policies that promote investment in energy efficiency. |
| Keywords: | housing, energy efficiency |
| JEL: | O1 Q5 R3 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_818_23&r=ene |
| By: | Preuß, Sabine; Kunze, Robert; Scherrer, Aline; Zwirnmann, Jakob; Rummel, Alexandra |
| Abstract: | Plug-in electric vehicles (PEV) are widely considered a promising option to reduce greenhouse gas (GHG) emissions in transport. The electricity used for charging is decisive for the environmental assessment of PEV. Most studies assume the average grid mix for charging. A study in 2021 showed that the share of renewables in charging electricity of PEV in Europe was above the grid mix. The present study provides an update of this study to further refine the database and to compare the results from 2021 and 2023. In addition, small methodological adjustments were implemented to improve the estimate of renewable electricity in PEV charging across Europe. Therefore, this article presents results of an extensive survey with over 3, 400 PEV users in 13 countries across the EU. Results reveal that PEV users still charge their PEV mostly at home. However, the share of renewable charging tariffs for home charging decreased compared to the results from 2021. When considering all charging locations (home, work and public charging), the respective share of renewable contracted electricity, and the number of PEV per EU country, the share of renewables in the charging electricity of PEV has further increased and is still above the European grid mix (i.e., balanced total supplier mix). We discuss reasons for this finding by outlining differences between the results of the study from 2021 and the present one. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:283599&r=ene |
| By: | Maximilian Konradt; Thomas McGregor; Mr. Frederik G Toscani |
| Abstract: | What is the effect of carbon pricing on inflation? This paper shows empirically that the consequences of the European Union’s Emission Trading System (ETS) and national carbon taxation on inflation have been limited in the euro area, so far. This result is supported by analysis based on a panel local projections approach, as well as event studies based on individual countries. Our estimates suggest that carbon taxes raised the price of energy but had limited effects on overall consumer prices. Since future climate policy will need to be much more ambitious compared to what has been observed so far, including the need for larger increases in carbon prices, possible non-linearities might make extrapolating from historical results difficult. We thus also use input-output tables to simulate the mechanical effect of a carbon tax consistent with the EU’s ‘Fit-for-55’ commitments on inflation. The required increase of effective carbon prices from around 40 Euro per ton of CO2 in 2021 to around 150 Euro by 2030 could raise annual euro area inflation by between 0.2 and 0.4 percentage points. It is worth noting that the energy price increases caused by the rise in the effective carbon price to 150 Euro is substantially smaller than the energy price spike seen in 2022 following the invasion of Ukraine. |
| Keywords: | Green transition; carbon taxes; climate policy; inflation |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/031&r=ene |
| By: | Jayasooriya, Sujith |
| Abstract: | Renewable energy is a key concern for the sustainable future of any economy. This review explains the green energy finance landscape of Sri Lanka with the motive of green energy financing framework for solving the issues. |
| Keywords: | green energy, finance, Sri Lanka |
| JEL: | Q21 Q40 |
| Date: | 2024–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120228&r=ene |
| By: | Emanuel Kohlscheen; Richhild Moessner; Elod Takats |
| Abstract: | We provide ex-post empirical analysis of the effects of climate policies on carbon dioxide emissions at the aggregate national level. Our results are based on a comprehensive database of 121 countries. As climate policies we examine carbon taxes and emissions trading systems (ETS), as well as the overall stringency of climate policies. We use dynamic panel regressions, controlling for macroeconomic factors such as economic development, GDP growth, urbanisation, as well as the energy mix. We find that higher carbon taxes and prices of permits in ETS reduce carbon emissions. An increase in carbon taxes by $10 per ton of CO2 reduces CO2 emissions per capita by 1.3% in the short run and by 4.6% in the long run. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.03800&r=ene |
| By: | Simone Emiliozzi (Bank of Italy); Fabrizio Ferriani (Bank of Italy); Andrea Gazzani (Bank of Italy) |
| Abstract: | The Russian invasion of Ukraine in February 2022 led to severe disruptions in the European gas market, with significant repercussions on a global scale. The conflict caused a surge in energy prices, a major reshuffling of global natural gas flows, and a shift in the policy-makers' agendas towards energy supply security. This paper describes the global gas market and analyses the consequences of the war, focusing in particular on the European gas market and on global LNG trade flows. We first review the characteristics of the gas market in terms of both pricing benchmarks and contractual terms. Next, we analyse the changes to LNG and natural gas production, consumption, and trade flows throughout the 2022-23 energy crisis. Finally, we review the main policy response to the energy crisis and present some considerations on the gas market outlook. |
| Keywords: | natural gas, energy crisis, LNG, fragmentation |
| JEL: | L95 P28 Q35 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_824_23&r=ene |
| By: | Ramaharo, Franck Maminirina (Ministry of Economy and Finance (Ministère de l'Economie et des Finances)); Razanajatovo, Yves Heritiana Mihaja (Ministry of Economy and Finance (Ministère de l'Economie et des Finances)) |
| Abstract: | We investigate the macroeconomic determinants of renewable energy consumption in Madagascar, using annual data from 1990 to 2021 and the ARDL bounds testing approach. Our results reveal that, in the long run, domestic investment, financial development, trade openness and foreign direct investment have a significant and positive impact on renewable energy consumption. Conversely, increased economic growth, industrial development, income distribution, and carbon emissions lead to a reduction in renewable energy consumption. Therefore, to achieve its ambitious goal of generating 85% of its energy from renewable sources by 2030, the government must carefully monitor and continually analyze these interconnected macroeconomic factors. This will enable effective tailoring of policies and interventions, paving the way for a successful transition to clean and renewable energy. |
| Date: | 2024–02–20 |
| URL: | http://d.repec.org/n?u=RePEc:osf:africa:dfk2c&r=ene |
| By: | Hoogland, Kelly; Hardman, Scott; Chakraborty, Debapriya; Bunch, David S |
| Abstract: | To mitigate climate change and air pollution, multiple US states and other countries have beensetting and adjusting goals and policies aimed at shifting sales from conventional, fossil-fuel–powered vehicles to plug-in electric vehicles (PEVs), defined as plug-in hybrid and battery electric (all-electric) vehicles. For example, US policies have offered federal tax credits for the purchase of PEVs, with limits set on how many PEVs from a single manufacturer, which PEVs, and which consumers qualify. A key to developing or adjusting these policies is understanding how financial incentives affect consumers’ decisions to purchase or lease PEVs. To better understand the impact of financial incentives on PEV leasing and purchasing, researchers at the University of California, Davis, analyzed survey responses from approximately 2, 800 California PEV owners. The survey asked: If the federal tax credit were not available would you: purchase or lease the same PEV, switch to a different PEV, switch to a conventional or hybrid (non-plug in) vehicle, or not acquire a vehicle at all? This policy brief discusses findings from those survey responses and provides policy implications. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Automobile ownership, Consumer preferences, Decision making, Electric vehicles, Incentives, Leasing, Taxation |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt33r245zv&r=ene |
| By: | Kohnert, Dirk |
| Abstract: | Human activity has transformed the planet at a pace and scale unprecedented in recorded history, causing irreversible damage to communities and ecosystems. Countries have focused their capacities on economic growth, with too little attention to externalities in terms of environmental quality. The world will not avoid catastrophic warming unless wealthy nations accelerate their reduction of own emissions and help poorer countries to do the same. North America and Europe have contributed 62 % of carbon dioxide emissions since the industrial revolution, while Africa has contributed only 3%. However, it is in sub-Saharan Africa (SSA) that the impacts are most severe and the people most vulnerable. Developed countries, in their own interests, should focus on ways to help developing countries phase out fossil fuels and transition to renewable energy. However, there are tensions between richer and poorer nations over who should pay the costs of global warming. Rich countries have a responsibility to act more quickly than their low-income counterparts. Yet governments continue to subsidise the use of fossil fuels, and banks and companies still invest more in polluting industries than in climate solutions. The consumption habits of the richest 10 % of people generate three times more pollution than those of the poorest 50 %. Emerging economies such as China and India, which plan to achieve net-zero emissions by 2060 and 2070 respectively, should join the developed world in accelerating emissions reductions. It is not just the way we produce and use energy that needs to change quickly. It's the way we consume food, the way we protect nature. It's everything, everywhere, all at once. The agricultural sector is particularly vulnerable, especially in SSA countries where agriculture is central to the economy. Among the top eight countries with the highest cumulative net emissions from agriculture, forestry and other land use are two SSA countries, Nigeria and DR Congo. Most of these emissions are embodied in trade and are caused by consumption in regions such as Europe, the United States and China. The establishment of the Loss and Damage Fund agreed at COP27 will not be enough to turn the tide, nor will it necessarily translate into climate finance commitments, given the lack of progress in delivering the promised US$100 billion in annual climate finance from rich countries. African countries themselves need to reflect on their own strengths and step up their efforts in a timely and substantial way. |
| Keywords: | Environmental sustainability; Carbon neutrality; climate change; Carbon dioxide; environmental pollution; greenhouse gas; fossil fuel; renewable energy; Governance; European Union; highly industrialized countries; emerging economies; BRICS; Sub-Saharan Africa; South Africa; Nigeria; DR Congo; |
| JEL: | E21 E22 E23 E26 F18 F54 F64 G38 H23 H84 H87 I15 I31 K32 N17 N37 N57 O13 O44 O55 Q54 Z13 |
| Date: | 2024–02–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120212&r=ene |
| By: | Kohnert, Dirk |
| Abstract: | Human activity has transformed the planet at a pace and scale unprecedented in recorded history, causing irreversible damage to communities and ecosystems. Countries have focused their capacities on economic growth, with too little attention to externalities in terms of environmental quality. The world will not avoid catastrophic warming unless wealthy nations accelerate their reduction of own emissions and help poorer countries to do the same. North America and Europe have contributed 62 % of carbon dioxide emissions since the industrial revolution, while Africa has contributed only 3%. However, it is in sub-Saharan Africa (SSA) that the impacts are most severe and the people most vulnerable. Developed countries, in their own interests, should focus on ways to help developing countries phase out fossil fuels and transition to renewable energy. However, there are tensions between richer and poorer nations over who should pay the costs of global warming. Rich countries have a responsibility to act more quickly than their low-income counterparts. Yet governments continue to subsidise the use of fossil fuels, and banks and companies still invest more in polluting industries than in climate solutions. The consumption habits of the richest 10 % of people generate three times more pollution than those of the poorest 50 %. Emerging economies such as China and India, which plan to achieve net-zero emissions by 2060 and 2070 respectively, should join the developed world in accelerating emissions reductions. It is not just the way we produce and use energy that needs to change quickly. It's the way we consume food, the way we protect nature. It's everything, everywhere, all at once. The agricultural sector is particularly vulnerable, especially in SSA countries where agriculture is central to the economy. Among the top eight countries with the highest cumulative net emissions from agriculture, forestry and other land use are two SSA countries, Nigeria and DR Congo. Most of these emissions are embodied in trade and are caused by consumption in regions such as Europe, the United States and China. The establishment of the Loss and Damage Fund agreed at COP27 will not be enough to turn the tide, nor will it necessarily translate into climate finance commitments, given the lack of progress in delivering the promised US$100 billion in annual climate finance from rich countries. African countries themselves need to reflect on their own strengths and step up their efforts in a timely and substantial way. |
| Keywords: | changement climatique; neutralité carbone; dioxyde de carbone; pollution; combustibles fossiles; énergies renouvelables; gouvernance; Union européenne; pays industrialisés; économies émergentes; BRICS; Afrique subsaharienne; Afrique du Sud; Nigeria; RD Congo; |
| JEL: | E26 F16 F18 F54 F64 G38 H23 H84 H87 I15 I31 K32 N17 N37 N57 O13 O44 O55 Q54 Z13 |
| Date: | 2024–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120231&r=ene |
| By: | Burani, Nadia; Mantovani, Andrea |
| Abstract: | We consider a duopolistic market in which a green firm competes with a brown rival, and both firms offer vertically differentiated products. Consumers are heterogeneous in both their willingness to pay for intrinsic quality and environmental concern. The latter is positively related to the green firm's market share, giving rise to a green network e¤ect. We characterize how price and quality schedules are set and how consumers sort between the two firms at the market equilibrium. When considering pollution both from consumption and production, we compute total welfare and evaluate the impact of an emission tax and a subsidy for the consumption of the green good. Our analysis demonstrates that efficiency can be achieved through an emission tax, which restores the optimal differential between firms' intrinsic qualities, combined with a discriminatory subsidy, which restores the optimal sorting of consumers. |
| Keywords: | bidimensional product differentiation; environmental concern; green network effect; pollution emissions; price discrimination; subsidy |
| JEL: | D21 L13 H21 Q58 Q51 |
| Date: | 2024–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:129135&r=ene |
| By: | Piergiorgio Alessandri (Bank of Italy); Andrea Gazzani (Bank of Italy) |
| Abstract: | How do shifts in the supply of natural gas affect output and inflation? To answer this question, we construct an instrument for gas supply shocks using a large set of daily news on the European gas market over the 2010-2022 period and use the instrument within a Bayesian VAR model. We find that negative supply shocks are stagflationary and that their effects materialize over far longer horizons than those of oil supply shocks, with peaks (troughs) in core inflation (industrial production) that follow the shock by two years or more. This pattern is consistent with the structural features of the gas market, and it suggests that European economies are still grappling with the large price spikes that took place in 2022. |
| Keywords: | natural gas prices, inflation, narrative identification, Bayesian VAR |
| JEL: | E31 E32 Q35 Q43 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1428_23&r=ene |
| By: | Martin Kittel; Wolf-Peter Schill |
| Abstract: | As variable renewable energy sources increasingly gain importance in global energy systems, there is a growing interest in understanding periods of variable renewable energy shortage (``Dunkelflauten''). Defining, quantifying, and comparing such shortage events across different renewable generation technologies and locations presents a surprisingly intricate challenge. Various approaches exist in different bodies of literature, such as hydrology, wind and solar energy analysis, or energy system modeling. The subject of interest in previous analyses ranges from single technologies in specific locations to diverse technology portfolios across multiple regions, focusing either on supply from variable renewables or its mismatch with electricity demand. We provide an overview of methods for quantifying variable renewable energy shortage. We explain and critically discuss the merits and challenges of different approaches for defining and identifying shortage events and propose further methodological improvements for more accurate shortage determination. Additionally, we elaborate on comparability requirements for multi-technological and multi-regional energy shortage analysis. In doing so, we aim to contribute to unifying disparate methodologies, harmonizing terminologies, and providing guidance for future research. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.06758&r=ene |
| By: | Gaetano Basso (Bank of Italy); Fabrizio Colonna (Bank of Italy); Domenico Depalo (Bank of Italy); Graziella Mendicino (Bank of Italy) |
| Abstract: | The paper discusses the role of labour in the transition to a net zero economy and provides an analysis for Italy over the period 2011-2021. First, we observe that the emissions generated from production activities declined over this period. We estimate that the contribution of employment reallocation across sectors was modest, while that of sectoral efficiency – particularly the shift in the energy mix towards cleaner sources – was decisive. Second, we show that the share of employment in the environmental goods and services sector was small in 2020 and has remained broadly stable since 2014. Our results suggest that, so far, labour has not played a prominent role in the green transition. However, this trend could change in the near future, as CO2 emission reduction targets take on an increasingly key role in production activities. |
| Keywords: | labour demand, green economy, ecological transition, public investments |
| JEL: | J23 Q52 Q56 H54 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_811_23&r=ene |
| By: | E. Zigah; M. Barry (Service de dermatologie [Bordeaux] - Université Bordeaux Segalen - Bordeaux 2 - CHU Bordeaux - Hôpital Haut-Lévêque [CHU Bordeaux] - CHU Bordeaux, Histologie et Pathologie Moléculaire - Université Bordeaux Segalen - Bordeaux 2, Department of Mathematics and Statistics [Boston] - BU - Boston University [Boston], Service de dermatologie Hôpital Saint-André Bordeaux - CHU Bordeaux, Inserm U1312 - BRIC - BoRdeaux Institute in onCology - UB - Université de Bordeaux - INSERM - Institut National de la Santé et de la Recherche Médicale); Anna Creti (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique, 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: | While it is commonly acknowledged that mini-grids are the new pathway to bridging the high electricity access deficit in Sub-Saharan Africa (SSA), comparably few studies have assessed how existing regulations and tariff policies in SSA affect their potentials to attract the number of private investments required to scale-up deployments. Private investors' participation is particularly crucial to meet the annual electrification investment needs of $120 billons in SSA. We study the regulatory framework, the tariff structure, and the subsidy schemes for mini-grids in Tanzania. Additionally, using an optimization technique, we assess the profitability of a mini-grid electrification project in Tanzania from a private investment perspective. We find that the approved standardized small power producers' tariffs and subsidy scheme in Tanzania still do not allow mini-grid for rural electrification projects to be profitable. A further study is required to identify successful business models and strategies to improve mini-grids profitability. |
| Keywords: | Electricity access, Mini-grids, Africa, Clean energy policy, Energy regulation, Pricing |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04439989&r=ene |
| By: | Andrea Colabella (Bank of Italy); Luciano Lavecchia (Bank of Italy); Valentina Michelangeli (Bank of Italy); Raffaella Pico (Bank of Italy) |
| Abstract: | This paper presents an assessment of the energy price shocks that hit Italian households starting in mid-2021 and their impact on households' financial vulnerability. First, we estimate the price elasticity of electricity and heating demand and compute the variation between 2020 and 2022 within the framework presented in Faiella and Lavecchia (2021b). Second, we study how those variations affected households' financial vulnerability, based on an extension of the modelling strategy proposed by Faiella et al. (2022). Our results indicate that, if energy price elasticity is not duly accounted for, financial vulnerability rises excessively on the heels of an energy price upsurge. In contrast, when consumption rebalancing within a dynamic microsimulation model is taken into account, financial vulnerability remains rather low and in line with supervisory data. While the risks for financial stability associated with energy shocks are therefore limited, this occurs at the of expense of household consumption and welfare. |
| Keywords: | climate stress test, financial vulnerability, inflation, demand elasticity |
| JEL: | C1 G5 Q41 Q54 Q58 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_800_23&r=ene |
| By: | Fridahl, Mathias; Schenuit, Felix; Lundberg, Liv; Möllersten, Kenneth; Böttcher, Miranda; Rickels, Wilfried; Hansson, Anders |
| Abstract: | Given the escalating climate crisis, the task of integrating novel carbon dioxide removals into the European Union’s climate policy is urgent and long overdue. Here, we argue that there is a window of opportunity for responding now, and put forward a solution. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkie:281982&r=ene |
| By: | Dessouky, Maged; Yao, Siyuan |
| Abstract: | In the United States, the transportation sector is the largest single source of greenhouse gas (GHG) and nitrogen oxide (NOx) emissions, and heavy-duty trucks contribute a disproportionately large share. Therefore, the trucking industry has been seeking ways to minimize emissions, such as adopting zero-emission vehicles and improving truck operating strategies to reduce truck miles. Battery-powered vehicles have different limitations than those with internal combustion engines. In this study, researchers from the University of Southern California investigated the adoption of battery electric heavy-duty trucks (BEHDTs) in the short-haul freight movement sector and the drayage industry. Drayage is a short-haul pickup and delivery service for transporting freight among ports, warehouses, and other facilities. With drayage routing, vehicles have limited weight and volume capacities and often make many stops. Routing involves optimizing for multiple factors, like fuel, distance traveled, and timeliness. This brief summarizes the findings from that research and provides implications for the field. View the NCST Project Webpage |
| Keywords: | Engineering, Diesel trucks, Drayage, Electric trucks, Electric vehicle charging, Routes and routing, Vehicle mix |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt0q7056s8&r=ene |
| By: | Ciaran O'Connor; Joseph Collins; Steven Prestwich; Andrea Visentin |
| Abstract: | Short-term electricity markets are becoming more relevant due to less-predictable renewable energy sources, attracting considerable attention from the industry. The balancing market is the closest to real-time and the most volatile among them. Its price forecasting literature is limited, inconsistent and outdated, with few deep learning attempts and no public dataset. This work applies to the Irish balancing market a variety of price prediction techniques proven successful in the widely studied day-ahead market. We compare statistical, machine learning, and deep learning models using a framework that investigates the impact of different training sizes. The framework defines hyperparameters and calibration settings; the dataset and models are made public to ensure reproducibility and to be used as benchmarks for future works. An extensive numerical study shows that well-performing models in the day-ahead market do not perform well in the balancing one, highlighting that these markets are fundamentally different constructs. The best model is LEAR, a statistical approach based on LASSO, which outperforms more complex and computationally demanding approaches. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.06714&r=ene |
| By: | Brandi, Clara; Holzer, Kateryna; Morin, Jean-Frédéric; van Asselt, Harro; Weber, Katharina |
| Abstract: | Linking trade to environmental goals is gaining momentum. Ever more discussion about trade and climate interlinkages are prevalent in both the trade and climate policy communities. The dedicated Trade Day at the 28th Conference to the Parties (COP28) of the United Nations Framework Convention on Climate Change (UNFCCC) underlines the growing interest in trade and climate interlinkages. Given the urgency of the climate crisis, using the toolbox of trade policies to help tackle climate change should be a priority. Preferential Trade Agreements (PTAs) are a promising trade policy tool to accelerate the transition toward greener economies and help address the climate crisis. PTAs - agreements that reduce trade barriers among their parties - are mushrooming around the world and they include an increasing number of environmental provisions. These provisions in PTAs can help reduce environmentally harmful subsidies, incentivise the green transition, and favour the diffusion of environmental technologies. But so far, climate-related environmental provisions in PTAs have not been designed in ways that enable them to live up to this potential. Many such climate provisions in PTAs remain vague, weak, and not very innovative. This policy brief outlines why we should use PTAs as a policy tool; discusses pitfalls of their current design; and shows how negotiators should improve the design of climate-related provisions to unlock their full potential. We discuss three types of provisions that have the potential to strengthen climate protection through PTAs: ossil fuel subsidies: Climate provisions in PTAs should seek to eliminate or phase down fossil fuel subsidies, provide for Special and Differential Treatment (SDT) for developing countries, and increase transparency on fossil fuel subsidies. Environmental goods and services (EGS): Climate provisions in PTAs should eliminate tariffs and non-tariff trade barriers for EGS, offer SDT for developing countries in the context of EGS, and should incentivise limate-friendly production through preferential tariffs. Investment: Climate provisions in PTAs should be designed so as to shield climate policy measures from legal challenges by providing a treaty-wide exception specifically for climate policy measures, reaffirming the right to regulate explicitly in relation to climate policy measures or carving out measures taken to address climate change from the application of Investor State Dispute Settlement (ISDS). We also outline five general policy recommendations for promoting the effectiveness of climate provisions in PTAs: 1) Prioritise win-win solutions; 2) facilitate the participation of non-state actors; 3) strengthen capacity-building and assistance; 4) enhance impact assessment, and knowledge diffusion; and 5) promote compliance and enforcement. |
| Keywords: | trade & investment, climate change |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:idospb:283117&r=ene |
| By: | Agnese Bafundi (Bank of Italy); Antonio Sparacino (Bank of Italy) |
| Abstract: | This paper analyses the relationship between the procurement methods adopted by Italian municipalities for the purchase of electricity and gas and the cost per capita incurred for these supplies. It empirically evaluates the effect of centralized purchasing for these expenditure categories. Using a unique dataset including payments made by Italian municipalities between 2019 and 2022, recorded on the Siope+ platform, we find that purchasing through Consip or regional procurement centres is associated with cost savings compared with direct procurement. Our analysis confirms the effectiveness of centralized procurement in the context of energy expenditures and highlights the potential efficiency gains associated with the ongoing increase in the rate of adoption of such systems. |
| Keywords: | centralization, procurement, energy expenses, local public finance |
| JEL: | H57 H76 K23 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_826_23&r=ene |
| By: | Patrick Welch (Lincoln Institute of Land Policy); Enrique Silva (Lincoln Institute of Land Policy); Martim Smolka (Lincoln Institute of Land Policy); Amy Cotter (Lincoln Institute of Land Policy) |
| Abstract: | The urgent need to address climate change has prompted subnational governments worldwide to explore innovative financing mechanisms to fund climate investments. This paper examines land value capture (LVC) as a potential source of financing for local climate action, reviewing instruments and implications associated with their implementation. It demonstrates how public climate interventions, including low-carbon transportation and green infrastructure, can positively impact land values and how subnational governments can recover those increments through LVC for additional public benefit. The paper examines common LVC instruments and their rationale, exploring how these mechanisms have been employed in different jurisdictions to fund climate mitigation and adaptation efforts. The paper underscores the potential of LVC as a viable financing mechanism for subnational climate action, offering insights into its practical implementation. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ays:ispwps:paper2401&r=ene |
| By: | Francesco Cusano (Bank of Italy); Danilo Liberati (Bank of Italy); Stefano Piermattei (Bank of Italy); Lorenzo Rubeo (Bank of Italy) |
| Abstract: | The work deals with the market of green securitizations in Italy. Green securitizations are financial instruments for which there are not yet accepted definitions or common methodologies to identify them. Firstly, we discuss on the possible definitions and the way to identify these instruments. Secondly, we describe the main characteristics of the market of green securitizations originated by banks in Italy during the ten years 2010 – 2019. We find that banks’ securitized loans to “brown†economic activities grew much more rapidly than “green†activities suggesting that banks preferred to keep loans to “green†activities in their balance sheet and to derecognize loans to the less sustainable ones. Finally, we show how the usual indexes of carbon content of Italian banks’ loans at carbon-critical sectors level can overestimate the amount of financed emissions if they do not consider the banks’ securitization activity. |
| Keywords: | green securitizations, carbon emissions |
| JEL: | G21 G23 Q56 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:opques:qef_809_23&r=ene |
| By: | Heimann, Tobias; Argueyrolles, Robin; Reinhardt, Manuel; Schuenemann, Franziska; Söder, Mareike; Delzeit, Ruth |
| Abstract: | The Renewable Energy Directive (RED II) by the European Union (EU) provides an updated framework for the use of renewable energy in the EU transport sector until 2030, and bans the use of biofuels with a high risk of causing indirect land‐use change in high carbon stock areas (high ILUC‐risk criteria). The only biofuel feedstock affected by this criterion is palm oil. We employ the computable general equilibrium (CGE) model DART‐BIO for a scenario‐based policy analysis and evaluate a phase‐out of palm oil‐based biodiesel, and an additional phase‐out of soy oil‐based biodiesel in the EU. Our results show that the palm phase‐out has only a relatively small impact on global palm fruit production and total crop land use in tropical and subtropical regions, while the soy phase‐out leads to a comparable stronger decrease in global soy production, and a reduction in total cropland use in soy‐producing regions. Both policies lead to increased oilseed production in the EU. Therefore, farmer in Malaysia and Indonesia face a significantly reduced income. While European farmers profit the most, EU firms and households are confronted with higher expenditures. Finally, this study indicates that unilateral demand‐side regulations for a single good in a single sector is not sufficient for effective environmental protection. Enhanced binding sustainability criteria and certification schemes for the use of all vegetable oils in every sector and industry as well as improved protection schemes for sensible forest areas are necessary. |
| Keywords: | Biofuels, Computable General Equilibrium (CGE), Land Use, Palm Oil, Renewable Energy Directive (RED II), Soy Oil |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkie:281955&r=ene |
| By: | Odran Bonnet; Étienne Fize; Tristan Loisel; Lionel Wilner |
| Abstract: | This paper exploits the introduction of the German carbon tax in 2021 as well as excise tax rebates on fuel in both France and Germany, consecutive to the 2022 oil crisis, to infer how fuel tourism responds to changes in relative prices. Based on French high-frequency transaction-level data issued from individual banking accounts, we find substantial displacement between foreign and domestic consumption. When relative prices increase by 1%, the relative cross-border demand decreases by 7.7%. In border areas, the elasticity of tax revenue with respect to foreign prices is as high as 0.5. Moreover, there is no substantial difference in demand response to either carbon or excise tax. Such empirical evidence illustrates the importance of coordinating tax policy within EU. |
| Keywords: | commodity taxation, tax coordination, carbon pricing, fuel tourism, transaction-level data |
| JEL: | H20 H23 H77 R48 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10918&r=ene |
| By: | Rodrigo Moita; Halisson Rodrigues; Thiago Rodrigues; Claudio Lucinda; Renata Lopes; Camila Stefanello; Thais Chaves |
| Abstract: | This paper aims to examine the key factors influencing default rates among residential electricity consumers in Brazil. To achieve this, we use a unique dataset comprising monthly electricity bills, and we combine it with several administrative data sources. By leveraging the policy designs adopted by the regulator, we employ a causal inference approach to identify the effects of tariff changes and enforcement actions implemented by electricity distributors on default rates. Our findings indicate that an increase in electricity tariffs raises the likelihood of default. Furthermore, the results reveal that power cuts represent the primary tool for combating default, and allowing such cuts can reduce the default duration by up to 9%. These findings contribute to the understanding of the factors influencing household default behavior and their implications for ensuring electricity affordability. |
| Keywords: | electricity tariff; electricity bill default; power cuts |
| JEL: | L94 L51 G50 |
| Date: | 2024–02–16 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2024wpecon5&r=ene |
| By: | Ruiz, Miguel Haro; Schult, Christoph; Wunder, Christoph |
| Abstract: | This study employs synthetic control methods to estimate the effect of the Iberian exception mechanism on wholesale electricity prices and consumer inflation, for both Spain and Portugal. We find that the intervention led to an average reduction of approximately 40% in the spot price of electricity between July 2022 and June 2023 in both Spain and Portugal. Regarding overall inflation, we observe notable differences between the two countries. In Spain, the intervention has an immediate effect, and results in an average decrease of 3.5 percentage points over the twelve months under consideration. In Portugal, however, the impact is small and generally close to zero. Different electricity market structures in each country are a plausible explanation. |
| Keywords: | Iberian exception mechanism, inflation, policy evaluation, synthetic controls, wholesale electricity prices |
| JEL: | E31 L51 Q41 Q48 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:283618&r=ene |
| By: | Bonga-Bonga, Lumengo |
| Abstract: | This paper evaluates the impact of varying magnitudes of oil price shocks on the equity market returns in BRICS countries under diverse market conditions using quantile-on-quantile regression analysis. Uniquely, unlike previous studies, this paper differentiates between demand and supply oil price shocks, under the assumption of a perfectly elastic oil supply. This assumption is grounded in a structural vector autoregressive (SVAR) framework, enhancing the analysis's precision in identifying the specific nature of oil price shocks. The empirical findings reveal that the impact of demand oil price shocks on the equity markets of BRICS nations varies according to the resource endowment of each country, showing distinct effects between countries with greater and lesser resource endowments. Additionally, the influence of supply oil price shocks on equity markets differs based on the market conditions, specifically whether the countries are net oil importers or exporters. These findings offer critical insights for policymakers and investors in BRICS countries, enabling the development of economic and business strategies that are closely aligned with the unique economic conditions and characteristics of each nation. |
| Keywords: | oil price shocks; stock markets; BRICS; quantile-on-quantile |
| JEL: | C31 C58 G15 |
| Date: | 2024–02–14 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120190&r=ene |
| By: | Aguilar-Gómez , Sandra (Universidad de los Andes); Cárdenas, Juan Camilo (Universidad de los Andes); Salas Díaz, Ricardo (Universidad de Massachusetts) |
| Abstract: | Driven by environmental justice activism and policy reforms, recent social science research conducted mostly in the US has documented the greater environmental degradation faced by marginalized communities. Yet, the ethnoracial categories used in these studies may not fully capture environmental inequality in the Global South. This study presents novel findings that quantify and decompose the link between skin tone and ambient air pollution exposure in Colombia, moving beyond conventional race and ethnicity variables. By matching household geolocations with satellite-based pollution measures, we find that skin tone —even more than predetermined ethnoracial categories— predicts both initial pollution levels and their changes over time. Darker-skinned individuals encounter more significant pollution increases, even after controlling for ethnoracial self-identification. These patterns hold among migrants and non-migrants, indicating that sorting and siting contribute to these disparities. Our results underline the importance of considering skin tone in environmental justice discussions, particularly in contexts where traditional race and ethnicity classifications fall short. |
| Keywords: | Environmental justice; air pollution; skin tone; Colombia |
| JEL: | I31 J15 Q53 Q56 R23 |
| Date: | 2024–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:021042&r=ene |
| By: | Andrea Bastianin; Elisabetta Mirto; Yan Qin; Luca Rossini |
| 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. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.04828&r=ene |
| By: | Ozili, Peterson K |
| Abstract: | The chapter explores the role of the central bank of Nigeria (CBN) in greening the financial system. I explore the ways in which the central bank could green the financial system. Some of the offered suggestions include disclosure requirements, establishing green finance labs, creating a green bank, and the use of differentiated cash reserve requirement based on environmental impact. The insights offered in this chapter are useful to bank supervisors and the monetary authority in understanding how financial and monetary decisions affect the environment. |
| Keywords: | Central bank, green finance, financial institutions, financial system, green bonds. |
| JEL: | E51 Q54 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120157&r=ene |
| By: | Gertjan Vlieghe (London School of Economics (LSE); Centre for Macroeconomics (CFM); Resolution Foundation) |
| Abstract: | In the post-pandemic period, there was substantial cross-country heterogeneity in energy prices faced by consumers, due to variation in countries’ energy mix, as well as variation in government energy subsidy policies. The main contribution of this paper is to exploit this country-level variation to show that countries with higher domestic energy prices faced higher subsequent core inflation. Core inflation rises gradually after an energy shock, for a little over a year, before falling back to the pre-shock rate of inflation. We argue that, in the aftermath of large energy price shocks, core inflation is not a reliable measure of underlying or persistent inflation, and should be adjusted for the predicted, country-specific, energy cost pass-through. Focusing more narrowly on services inflation rather than core inflation does not solve the problem, as services inflation responds similarly, in both magnitude and duration, to energy price shocks. |
| Keywords: | OECD, cross-country, core inflation, energy, monetary policy |
| JEL: | E30 Q43 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2407&r=ene |
| By: | Eckert, Linus; Schemel, Benjamin; Stagl, Sigrid |
| Abstract: | In diesem Working Paper werden die Ergebnisse einer in Österreich bundesweit durchgeführten Studie zur gesellschaftlichen Akzeptanz von Klimaschutzmaßnahmen vorgestellt. Die Ergebnisse zeigen, dass die österreichische Bevölkerung generell sehr positiv zu Klimaschutzmaßnahmen eingestellt ist. 24 der 27 abgefragten Klimaschutzmaßnahmen zeigen im Ergebnis in der bundesweiten Bevölkerung mehr Unterstützung als Widerstand. Die befragten Klimaschutzmaßnahmen wurden in einem vorigen Projektschritt im Auftrag des Bundesministeriums für Klimaschutz im Rahmen des Nationalen Energie und Klimaplans identifiziert. |
| Keywords: | Energy transition; Public acceptance; Climate change |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus045:60825202&r=ene |
| By: | Thomas Klitgaard |
| Abstract: | China’s aggressive policies to develop its battery-powered electric vehicle (BEV) industry have been successful in making the country the dominant producer of these vehicles worldwide. Going forward, BEVs will likely claim a growing share of global motor vehicle sales, helped along by subsides and mandates implemented in the United States, Europe, and elsewhere. Nevertheless, China’s success in selling BEVs may not contribute much to its GDP growth, owing both to the maturity of its motor vehicle sector and the strong tendency for countries to protect this high-profile industry. |
| Keywords: | battery-powered electric vehicle (BEV); exports; trade; China; Europe; tariffs; protectionism |
| JEL: | F0 |
| Date: | 2024–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:97869&r=ene |
| By: | Francesco Corsello (Bank of Italy); Marianna Riggi (Bank of Italy) |
| Abstract: | Energy price shocks broaden inflation inequality, measured by the gap between consumer prices for households at the bottom and top of the expenditure distribution, which is due to different consumption baskets. We provide a VAR-based quantification of the impact of energy shocks on inflation inequality. We then develop and estimate a general equilibrium two-agent model with imported energy to rationalize the empirical results and show why this effect becomes stronger when monetary policy responds aggressively to inflation. Indeed, though less affluent consumers too benefit from the containment of inflation resulting from monetary policy action, they do so to a lesser extent than more affluent ones, given the relatively lower share of consumption spent on items whose prices are sensitive to cyclical conditions. Our results call for the need to complement the monetary policy response with targeted fiscal measures. |
| Keywords: | energy shocks, inflation inequality, VAR, dynamic general equilibrium, two-agent model |
| JEL: | E31 E32 E50 E52 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1429_23&r=ene |
| By: | Schult, Christoph |
| Abstract: | I estimate a dynamic stochastic general equilibrium (DSGE) model for the United States that incorporates oil market shocks and risk shocks working through credit market frictions. The findings of this analysis indicate that risk shocks play a crucial role during the Great Recession and the Dot-Com bubble but not during other economic downturns. Credit market frictions do not amplify persistent oil market shocks. This result holds as long as entry and exit rates of entrepreneurs are independent of the business cycle. |
| Keywords: | financial frictions, NK-DSGE models, oil price, recessions, risk |
| JEL: | E32 E37 E44 Q43 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:283617&r=ene |
| By: | Anna Bartocci (Bank of Italy); Alessandro Cantelmo (Bank of Italy); Pietro Cova (Bank of Italy); Alessandro Notarpietro (Bank of Italy); Massimiliano Pisani (Bank of Italy) |
| Abstract: | We use a dynamic equilibrium model featuring different sources of energy to assess the macroeconomic effects, in the euro area, of a temporary reduction in excise taxes on fossil fuels and an increase in lump-sum transfers to the poorest ('hand-to-mouth') households, and of raising the monetary policy rate in response to a temporary increase in the global prices of fossil fuels. In the model, the central bank should raise the monetary policy rate to stabilize inflation even if excise taxes are lowered, in particular if price- and wage-setting decisions are not strongly anchored to the central bank's inflation target. Lump-sum transfers to hand-to-mouth households can stabilize their consumption with limited inflationary effects. |
| Keywords: | monetary policy, fiscal policy, dynamic general equilibrium model, euro area, fossil fuel price shocks |
| JEL: | D58 E52 E62 Q43 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1431_23&r=ene |
| By: | Frondel, Manuel; Schmidt, Christoph M. |
| Abstract: | Die CO2-Bepreisung für fossile Kraft- und Brennstoffe wurde 2021 eingeführt, um deren Verbrauch zum Zwecke des Klimaschutzes zu reduzieren. Um bei steigenden CO2-Preisen eine breite Akzeptanz zu sichern, sollte die Politik diese Einnahmen wieder komplett an die Verbraucher zurückgeben. Bislang soll dies in Form jährlicher Pauschalbeträge geschehen. Um die Bevölkerung und die Unternehmen schneller und unkompliziert zu entlasten, sollte die Bundesregierung die Einnahmen aus der CO2-Bepreisung, die dem Klima- und Transformationsfonds (KTF) zufließen, besser dafür verwenden, Komponenten des Strompreises zu senken, vor allem die Netzentgelte. Durch die Absenkung der Strompreise würden sowohl die privaten Haushalte als auch Unternehmen, besonders kleine und mittlere Unternehmen (KMU), deutlich entlastet - für Unternehmen entstünden neue Investitionsanreize und die Wirtschaft könnte stärker wachsen. In Zeiten massiver finanzieller Engpässe beim Klima und Transformationsfonds wäre es klug, die knappen Mittel so zu verwenden, dass damit zugleich die Energiewende vorangebracht und die Unternehmen sowie die Bevölkerung entlastet werden. Das würde durch eine Verwendung der KTF-Mittel zur Senkung der Netzentgelte und der zahlreichen Umlagen auf den Strompreis der Fall sein, nicht aber bei Auszahlung eines Klimageldes. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwipos:283895&r=ene |
| By: | Elie Bouri (School of Business, Lebanese American University, Lebanon); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Christian Pierdzioch (Department of Economics, Helmut Schmidt University, Holstenhofweg 85, P.O.B. 700822, 22008 Hamburg, Germany) |
| Abstract: | In the wake of a massive thrust on designing policies to tackle climate change, we study the role of climate policy uncertainty in impacting the presidential approval ratings of the United States (US). We control for other policy related uncertainties and geopolitical risks, over and above macroeconomic and financial predictors used in earlier literature on drivers of approval ratings of the US president. Because we study as many as 19 determinants, and nonlinearity is a well-established observation in this area of research, we utilize random forests, a machine-learning approach, to derive our results over the monthly period of 1987:04 to 2023:12. We find that, though the association of the presidential approval ratings with climate policy uncertainty is moderately negative and nonlinear, this type of uncertainty is in fact relatively more important than other measures of policy-related uncertainties, as well as many of the widely-used macroeconomic and financial indicators associated with presidential approval. In addition, and more importantly, we also detect that the importance of climate policy uncertainty has grown in recent years in terms of its impact on the approval ratings of the US president. |
| Keywords: | Presidential approval ratings, Climate policy uncertainty, Random forests |
| JEL: | C22 Q54 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202406&r=ene |
| By: | OECD |
| Abstract: | This working paper provides a granular overview of investments into low-carbon infrastructure, both in the real economy and financial market. The descriptive analysis shows that there is room to scale up cross-border infrastructure investment and to shift investment into low-carbon assets. Specifically, low-carbon cross-border investment can be increased by shifting infrastructure investments, that currently flow into the financial economy, to the real economy and by incentivising the use of financing instruments, i.e., securitised products, that bundle projects and meet different liquidity tastes of investors. The analysis also highlights the important role of foreign direct investment (FDI) into infrastructure from foreign real economy companies. |
| Keywords: | Infrastructure, investment |
| JEL: | F21 Q56 H54 |
| Date: | 2024–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:oec:dafaaa:2024/1-en&r=ene |
| By: | Mingyang Li; Han Pengsihua; Fujiao Meng; Zejun Wang; Weian Liu |
| Abstract: | This academic paper examines the strategic interactions between Japan, other nations, and the International Atomic Energy Agency (IAEA) regarding Japan's decision to release treated nuclear wastewater from the Fukushima Daiichi Nuclear Power Plant into the sea. It introduces a payoff matrix and time-delay elements in replicator dynamic equations to mirror real-world decision-making delays. The paper analyzes the stability of strategies and conditions for different stable states using characteristic roots of a linearized system and numerical simulations. It concludes that time delays significantly affect decision-making stability and evolution trajectories in nuclear wastewater disposal strategies. The study highlights the importance of efficient wastewater treatment technology, the impact of export tax revenue losses on Japan's strategies, and the role of international cooperation. The novelty of the research lies in integrating time-delay elements from ocean dynamics and governmental decision-making into the game-theoretical model. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.07227&r=ene |
| By: | Theo Drossidis (Brunel University); Haroon Mumtaz (Queen Mary University of London, School of Economics & Finance); Angeliki Theophilopoulou (Brunel University) |
| Abstract: | This paper uses high frequency data on the distribution of US income to investigatethe heterogeneous effects of oil supply news shocks. Using a FAVAR with an external instrument, We show that these shocks have large negative effects on the left and right tail of the distribution. For low income individuals, the effect is driven by a decline in wages and proprietor’s income, while a fall in corporate profits and interest income drives the effect for affluent individuals. |
| Keywords: | Oil shock; income inequality; FAVAR; External instrument identification. |
| JEL: | O23 E32 Q54 |
| Date: | 2024–02–19 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:975&r=ene |
| By: | Burke, Andrew; Ogden, Joan; Fulton, Lewis; Cerniauskas, Simonas |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2024–02–27 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt83p5k54m&r=ene |
| By: | Fatouros, Nikos |
| Abstract: | We examine the effect that higher natural disaster frequency has on economic outcomes. Even if there is clear evidence that natural disaster incidents are not only going to be more frequent but will also start affecting a wider pool of countries, research has not yet analyzed the economic impact of the interaction between climate change and more frequent extreme rare events. With this study, we try to unveil the mechanisms through which natural disasters and climate change are interconnected, as well as provide policy insights regarding the adoption of greener inputs, in the form of green capital. Our findings suggest that raising temperatures are expected to negatively affect consumption as well as increase debt. We also show that under “green” technology adaptation, countries are projected to achieve higher levels of consumption and welfare. |
| Keywords: | Green Technologies, Natural Disasters, Climate Change, Sustainable Growth |
| JEL: | E60 O11 Q51 Q52 Q56 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120162&r=ene |
| By: | Adolfsen, Jakob Feveile; Ferrari Minesso, Massimo; Mork, Jente Esther; Van Robays, Ine |
| Abstract: | This paper develops a Bayesian VAR model to identify three structural shocks driving the European gas market: demand, supply and inventory shocks. We document how gas price fluctuations have a heterogeneous pass-through to euro area prices depending on the underlying shock driving them. The pass-through is stronger and more persistent when gas prices are driven by aggregate demand or supply pressures, while inventory shocks have a weaker impact. Supply shocks, moreover, are found to pass through to all components of euro area inflation – producer prices, wages and core inflation, which has implications for monetary policy. We finally document how the response of gas prices to shocks is non-linear and is significantly magnified in periods of low unemployment. JEL Classification: C50, C54, E30, E31, Q43 |
| Keywords: | euro area, gas price, pass-through, price |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242905&r=ene |
| By: | Kapeller, Jakob; Hornykewycz, Anna; Weber, Jan; Cserjan, Lukas |
| Abstract: | Der Gebäudesektor stellt einen Schlüsselsektor für eine erfolgreiche Dekarbonisierung Deutschlands dar und bildet damit eine wesentliche Schnittstelle zur Erreichung der gesamtgesellschaftlichen Klimaziele. Vor diesem Hintergrund versucht dieser Policy Brief, den nötigen Sanierungsbedarf zur Erreichung einer solchen Dekarbonisierung zu bestimmen, die damit verbundenen Kosten zu schätzen und Vorschläge für mögliche Finanzierungsmodelle einer solchen Transformation des Gebäudesektors vorzulegen. Darüber hinaus sollen auch kritische Randbedingungen der untersuchten Transformationsstrategie - wie mögliche Kapazitätsgrenzen, technologische Fallstricke oder bestehende Importabhängigkeiten - diskutiert werden. |
| Keywords: | Klimawandel, Gebäude, Sanierung, Dekarbonisierung, Klimaneutralität, Sozial-ökologische Transformation, "just transition" |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifsoex:283901&r=ene |
| By: | Mallesh Pai (Rice University); Philipp Strack (Yale University) |
| Abstract: | We consider the optimal taxation of a good which exhibits a negative externality, in a setting where agents differ in their value for the good, their disutility from the externality, and their value for money, while the planner observes neither. Pigouvian taxation is the unique Pareto efficient mechanism, yet it is only optimal if the planner puts higher Pareto weights on richer agents. We derive the optimal tax schedule for both a narrow allocative objective and a utilitarian objective for the planner. The optimal tax is generically nonlinear, and Pareto inefficient. The optimal mechanism might take a Ònon-marketÓ form and cap consumption, or forbid it altogether. We illustrate the tractability of our model by deriving closed form solutions for the lognormal and Rayleigh distribution. Finally, we calibrate our model and derive optimal taxes for the case of air travel. |
| Date: | 2022–08–09 |
| URL: | http://d.repec.org/n?u=RePEc:cwl:cwldpp:2377&r=ene |
| By: | Mingyang Li; Han Pengsihua; Songqing Zhao; Zejun Wang; Limin Yang; Weian Liu |
| Abstract: | On August 24, 2023, Japan controversially decided to discharge nuclear wastewater from the Fukushima Daiichi Nuclear Power Plant into the ocean, sparking intense domestic and global debates. This study uses evolutionary game theory to analyze the strategic dynamics between Japan, other countries, and the Japan Fisheries Association. By incorporating economic, legal, international aid, and environmental factors, the research identifies three evolutionarily stable strategies, analyzing them via numerical simulations. The focus is on Japan's shift from wastewater release to its cessation, exploring the myriad factors influencing this transition and their effects on stakeholders' decisions. Key insights highlight the need for international cooperation, rigorous scientific research, public education, and effective wastewater treatment methods. Offering both a fresh theoretical perspective and practical guidance, this study aims to foster global consensus on nuclear wastewater management, crucial for marine conservation and sustainable development. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.07210&r=ene |
| By: | Paul Hurlet (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Ouassim Manout (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Azise Oumar Diallo (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles) |
| Abstract: | This work addresses the challenges of implementing shared e-scooter services (SSS) in urban areas. Despite their potential for sustainable mobility, issues like road safety and street cluttering persist. Policy regulation is crucial, and recent efforts have focused on free-floating e-scooter parking legislation. To assist decision-making, this paper proposes an agent-based framework to design SSS parking supply and evaluate its impact. The methodology is applied in Lyon, France, where the SSS is gaining more and more territory. The main outcomes show parking regulation can introduce conflicting objectives, with a reduction of SSS use due to an increase in the access and egress walking distance. |
| Keywords: | Shared e-Scooter Services (SSS), Micromobility, Regulation, Parking, Agent-Based Model (ABM), MATSim |
| Date: | 2024–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04422427&r=ene |