|
on Energy Economics |
| By: | Michael G. Pollitt |
| Keywords: | Energy crisis, single market in energy, wartime |
| JEL: | L94 L95 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2317&r=ene |
| By: | Natsuko Toba; Tooraj Jamasb; Luiz Maurer; Anupama Sen |
| Keywords: | Renewable energy, solar power, battery storage, auction design |
| JEL: | D0 D4 D8 L0 L1 L9 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2312&r=ene |
| By: | Seung Min Kim; Kenneth Gillingham |
| Abstract: | There is strong evidence on the mortality and morbidity external costs of air pollution. This paper focuses on another source of air pollution externality: the loss in solar electricity generation from increased atmospheric opacity due to air pollution. We use data from residential rooftop solar panels and exploit quasi-random variation in air opacity from wildfire smoke and wind conditions to estimate that PM2.5 pollution reduced annual solar generation in California by over 450GWh, or 4% of total potential generation. This is equivalent to an annual externality of $177 per ton of PM2.5 emitted. Our findings suggest that there is a positive feedback from decarbonisation policies, where reduced dependence on fossil fuels improves air quality, leading to an even greater productivity of solar generation, further reducing emissions. |
| Keywords: | solar energy, air pollution, equity |
| JEL: | Q48 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10948&r=ene |
| By: | Michael G. Pollitt |
| Keywords: | LMPs, nodal pricing, electricity markets |
| JEL: | L94 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2318&r=ene |
| By: | Zeenat Hameed; Michael Pollitt; Paul Kattuman; Chresten Træholt |
| Keywords: | Ancillary services, spot markets, forecast, battery energy storage |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2220&r=ene |
| By: | Nicholas Gohdes; Paul Simshauser; Clevo Wilson |
| Keywords: | PPAs, renewable energy, counterparty credit, project finance, cost of capital |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2306&r=ene |
| By: | Giorgos Galanis (School of Business and Management, Queen Mary University of London (UK).); Mauro Napoletano (GREDEG, CNRS, Université Côte d’Azur, Sciences Po, OFCE, SKEMA Business School.); Lilit Popoyan (School of Business and Management, Queen Mary University of London (UK).); Alessandro Sapio (University of Naples "Parthenope" (Italy)); Olivier Vardakoulias (Climate Action Network (CAN) Europe (Belgium)) |
| Abstract: | Climate change has sparked a vivid discussion on its socio-economic risks, capturing the attention of academic circles and policymakers. While it is widely argued that a low-carbon transition should be socially just, the precise criteria that policies must adhere to, in order to be universally accepted as `just', remain insufficiently defined. We draw on relevant theories of distributive justice to provide a formal definition of a just transition. According to our definition, just transition policies should minimise costs for the most vulnerable groups and also take into account the uneven responsibility for causing damages. |
| Keywords: | climate change; distributive justice; green policies; just transition; inequality |
| JEL: | O13 Q52 Q54 Q58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cgs:wpaper:114&r=ene |
| By: | Stefan Bergheimer; Estelle Cantillon; Mar Reguant |
| Abstract: | Wholesale electricity markets solve a complex allocation problem: electricity is not storable, demand is uncertain, and production involves dynamic cost considerations and indivisibilities. The New Zealand wholesale electricity market attempts to solve this complex allocation problem by using an indicative price and quantity discovery mechanism that ends at dispatch. Can such a market mechanism without commitment provide useful information? We document that indicative prices and quantities are increasingly informative of the final prices and quantities and that bid revisions are consistent with information-based updating. We argue that the reason why the predispatch market is informative despite the lack of commitment is that it generates private benefits in terms of improved intertemporal optimization of production plans. |
| Keywords: | Electricity markets, Price discovery, Pre-play communication, Non-trading mechanisms, Coordination, Intertemporal optimization |
| Date: | 2023–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/368728&r=ene |
| By: | Baikie, Victoria (Monash University) |
| Abstract: | This paper analyses how income inequality changes through the clean energy transition. Gini Coefficients are used to present overall changes in inequality over the chosen time period. Influences of rooftop solar and electrification are considered in this report as the literature suggests there is unequal access to these technologies. Key findings suggest the energy transition contributes to an overall decline in inequality from 2023 to 2050 and energy prices become cheaper. Larger proportion of households with solar, reduces the burden of high energy prices. However, the fall in inequality is shown to not be equal across all income brackets with the lowest two brackets declining the least. In the data, the gap between the highest and lowest income brackets remains prevalent at the point of Net Zero. |
| Keywords: | Energy Transition ; Income Inequality ; Solar ; Energy Prices JEL classifications: P28 ; Q43 ; Q58 ; O15 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:wrk:wrkesp:71&r=ene |
| By: | Victor Ajayi; Michael G. Pollitt |
| Keywords: | Green growth, net zero, circular economy, future energy scenarios, productivity |
| JEL: | D24 O44 Q53 Q54 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2215&r=ene |
| By: | Michael Hoel; Michael Olaf Hoel |
| Abstract: | To reach the goals of the Paris agreement, net carbon emissions must be reduced to zero by the second half of this century. To achieve this, some kind of carbon dioxide removal (CDR) is needed. The paper gives an analysis of the interaction between extraction of fossil energy resources and CDR. If there is sufficient capacity for storing captured carbon, it will be optimal to have a period of negative net emissions. In this case cumulative extraction will not depend on climate costs, but will be higher the lower is the cost of CDR at low levels of CDR. |
| Keywords: | net zero emissions, negative emissions, carbon removal, CDR, CCS, stranded assets |
| JEL: | Q35 Q40 Q54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10939&r=ene |
| By: | Best, Frank |
| Abstract: | In order to avoid carbon leakage, the EU decided to introduce the Carbon Border Adjustment Mechanism to put a fair price on embedded carbon emissions of products imported into the EU. Once the CBAM is operational, importing companies will have to declare the embedded emissions for their products and surrender the corresponding amount of CBAM certificates. Taiwan is an important trade partner of the EU, especially for electronic components, and also for base metals like Iron & Steel or Aluminium. The industrial manufacturing for base metals yields high Scope 1 greenhouse gas emissions; additionally, power generation in Taiwan relies heavily on fossil fuels. This paper identifies the Iron & Steel product flows from Taiwan to the EU. It describes the CBAM requirements and the potential impact on Taiwanese Iron & Steel exports, pointing out challenges and opportunities. It intends to support Taiwanese companies to prepare for CBAM rules both during the transition phase and once the system is fully active. |
| Abstract: | Um Carbon Leakage zu vermeiden, beschloss die EU den Carbon Border Adjustment Mechanism (CBAM) als Grenzausgleichsmechanismus einzuführen, um CO2-Emissionen von Produkten, die in die EU importiert werden, fair zu bepreisen. Sobald der CBAM funktionsfähig ist, müssen importierende Unternehmen die entstandenen Emissionen für ihre Produkte deklarieren und die entsprechende Menge an CBAM-Zertifikaten abgeben. Taiwan ist ein wichtiger Handelspartner der EU, insbesondere für elektronische Komponenten, aber auch für Grundstoffe wie Eisen & Stahl oder Aluminium. Die industrielle Herstellung dieser Produkte führt zu hohen Scope-1-Treibhausgasemissionen; zusätzlich basiert die Stromerzeugung in Taiwan stark auf fossilen Brennstoffen. Dieses Papier identifiziert die Importströme von Eisen & Stahl von Taiwan in die EU. Es beschreibt die Anforderungen des CBAM und die potenziellen Auswirkungen auf die Exporte von taiwanesischem Eisen & Stahl und zeigt Herausforderungen und Chancen auf. Es zielt darauf ab, taiwanesische Unternehmen dabei zu unterstützen, sich sowohl während der Übergangsphase als auch nach der vollständigen Inbetriebnahme des Systems auf die CBAM-Regeln vorzubereiten. |
| Keywords: | CBAM, Carbon Border Adjustment Mechanism, Emission Intensity, Emission Trading Scheme, EU-ETS, Imports, Iron, Steel, Taiwan, TSCE |
| JEL: | F14 H23 M16 L61 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esconf:285308&r=ene |
| By: | Wataru Miyamoto; Thuy Lan Nguyen; Dmitry Sergeyev |
| Abstract: | Using high-frequency responses of oil futures prices to prominent oil market news, we estimate the effects of oil supply news shocks when systematic monetary policy is switched off by the zero lower bound (ZLB) and when it is not (normal periods) in Japan, the United Kingdom, and the United States. We find that negative oil supply news shocks are less contractionary (and even expansionary) at the ZLB compared to normal periods. Inflation expectations increase during both periods, while the short nominal interest rates remain constant at the ZLB, pointing to the importance of monetary policy for oil shock propagation. |
| Keywords: | oil price shocks; high-frequency identification; Zero Lower Bound (ZLB); monetary policy |
| JEL: | E5 E7 G4 |
| Date: | 2023–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedfwp:97925&r=ene |
| By: | Massimiliano Rizzati (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Emanuele Ciola (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia); Enrico Turco (Fondazione Eni Enrico Mattei and The Complexity Lab in Economics, Department of Economics and Finance, Catholic University of Milan); Davide Bazzana (Fondazione Eni Enrico Mattei and Department of Economics and Management, Università degli Studi di Brescia) |
| 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: | Energy Sector, Agent-Based Models, Macroeconomic Dynamics, Climate Policy, Emission Abatement, Green preferences |
| JEL: | C63 Q52 Q58 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2024.03&r=ene |
| By: | Jan K. Brueckner; Matthew E. Kahn; Jerry Nickelsburg |
| Abstract: | The durability of the transportation capital stock slows down the pace of decarbonization since newer vintages feature cutting-edge technology. If older vintages were to be retired sooner, the social cost of travel would decline. This paper analyzes and explores the viability of a potential cash-for-clunkers program for the airline industry, which would help to hasten decarbonization of US aviation. Our estimation and calculations show that airlines can be induced to scrap rather than sell older planes upon retirement with a payment that is less than the forgone carbon damage, yielding net social benefits. |
| JEL: | Q54 R49 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32205&r=ene |
| By: | Ivo Welch |
| Abstract: | Shared socioeconomic pathways (SSPs) are perhaps the most influential economic policy analyses today. My paper evaluates their development, natural associations, logical consequences, and economic identification. All five SSP baseline scenarios are predicting scenarios that historical time-series analysis would consider empirically highly implausible. This alternative — econometric time-series analysis based on worldwide IPAT components — suggests alternative emission scenarios, mapping into expected radiative forcing of about RCP 6.5, with a reasonable plausibility range from RCP 4.5 to RCP 7.0. |
| JEL: | Q54 Q55 Q56 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32178&r=ene |
| By: | Mei Lu; Michael G. Pollitt; Ke Wang; Yi-Ming Wei |
| Keywords: | Carbon emissions trading scheme, target responsibility system, policy evaluation, triple difference-in-differences |
| JEL: | Q54 L94 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2316&r=ene |
| By: | Chi Kong Chyong; Michael Pollitt; David M. Reiner; Carmen Li |
| Keywords: | Energy system modelling, spatial flexibility, temporal flexibility, networks, intraday storage, long-duration storage, power-to-x, Net Zero, deep decarbonisation pathways |
| JEL: | C6 O13 Q4 Q47 |
| Date: | 2023–02 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2302&r=ene |
| By: | Antonis Papapantoleon; Jasper Rou |
| Abstract: | We develop a novel deep learning approach for pricing European options in diffusion models, that can efficiently handle high-dimensional problems resulting from Markovian approximations of rough volatility models. The option pricing partial differential equation is reformulated as an energy minimization problem, which is approximated in a time-stepping fashion by deep artificial neural networks. The proposed scheme respects the asymptotic behavior of option prices for large levels of moneyness, and adheres to a priori known bounds for option prices. The accuracy and efficiency of the proposed method is assessed in a series of numerical examples, with particular focus in the lifted Heston model. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.00746&r=ene |
| By: | Achim Hagen; Gilbert Kollenbach |
| Abstract: | We study the interaction of climate policies and investments into fossil and renewable energy generation capacity if policies are set by democratically elected governments and can lead to stranded assets. We develop an overlapping generations model, where elections determine carbon taxation and green investment subsidies, and individuals make investments into fossil and renewable capacity. We find that some fossil investments become stranded assets, if the party offering the higher carbon tax is unexpectedly elected. In contrast, if the individuals have perfect foresight, there are no stranded assets, climate damages are fixed and carbon taxation only serves redistributive purposes. Then, there is either no or prohibitive carbon taxation and energy generation completely relies on renewables in the latter case. Green investment subsidies can be used by governments to bind the hands of their successor. If the party representing the young generation is in power, it can use a high subsidy to reduce or even avoid potentially stranded assets in the next period. With endogenous reelection probability, we show that this party can also use investment subsidies strategically to influence the elections. The party that represents the old generation abstains from both types of climate policies to avoid a redistribution of income towards the young generation. |
| Keywords: | Stranded Assests, Political Economy, Fossil Fuel, Renewable Energy, Carbon Tax, Investment Subsidy |
| JEL: | D72 H23 Q54 Q58 |
| Date: | 2024–03–06 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0033&r=ene |
| By: | Chetana Chaudhuri (National Council of Applied Economic Research, Delhi, India); Devender Pratap (National Council of Applied Economic Research, Delhi, India); Sanjib Pohit (National Council of Applied Economic Research, Delhi, India) |
| Abstract: | The Social Accounting Matrix (SAM) for India was historically constructed based on Input-Output table (IO). But from 2011-12, Government of India, is publishing SupplyUse table, instead of input-output table. While erstwhile Input-Output Table published by Government of India had same number of products and industries, Supply-Use table provides one ‘Supply matrix’ and one ‘Use matrix’, each of which is a rectangular table with 140 products and 66 industries (for 2018-19). Converting the Supply-Use table to a square Input-Output table and subsequently extending it to Social Accounting Matrix require utilisation of various data sources, application of numerous steps and adjustments, and there are not many literatures on it, despite the usefulness of both IO and SAM matrices in macroeconomic policy design. This study aims to bridge the gap by constructing Input-Output Table and Social Accounting Matrix for India from the SupplyUse table incorporating information from many other sources, and describes the method of construction of the matrices. Our IO and SAM also focus on various energy sectors, including different sources of power generation, biomass etc. and disaggregate energyintensive sectors like cement or aluminium, considering the immense usefulness of the energy-extended macro structure to research of energy and environment policies. The study focuses on construction of a 59×59 SAM for India, with base year of 2021-22 incorporating 3 factors of production and 10 categories of households. As an application of the newly constructed SAM, we have analysed the employment implication of India’s Nationally Determined Contribution (NDC) emission commitments. |
| Keywords: | Social Accounting Matrix, Input-Output Table, Supply-Use Table, SAM Multiplier, India, Energy |
| JEL: | E16 C67 D57 |
| Date: | 2024–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:nca:ncaerw:160&r=ene |
| By: | Maris, Robbie (Centre for Education Policy and Equalising Opportunities, University College London (UCL)); Zack, Dorner (Department of Environmental Management, Lincoln University); Carlsson, Fredrik (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | Shifting individual behaviour is an important tool for addressing environmental issues and there is a wide literature evaluating interventions to encourage pro-environmental behaviour. One important but under-researched area is the effect of combining interventions to affect behaviour. In this paper, we evaluate the effects of two interventions – monetary incentives and nudges – on nature restoration volunteering. We use a two-by-two treatment design to evaluate the individual and combined effects of the interventions in a field experiment setting. We find that the monetary incentive significantly increases volunteering behaviour, despite concerns incentives may crowd out motivation, but that nudging alone is ineffective at shifting behaviour. However, there are considerable positive synergies between the monetary incentive and nudge. The monetary incentive becomes more than twice as effective when it is combined with a nudge. We find support for our theoretical prediction that this synergy arises because the nudge reduces motivational crowding out effects from the incentive. Our results have important policy implications, showing that concerns around motivation crowding out from monetary incentives could be mitigated by simple, low-cost nudges. |
| Keywords: | Field experiment; incentive; nature restoration; nudge; PEB; pro-environmental behaviour; synergy; volunteering |
| JEL: | C93 D91 Q57 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0842&r=ene |
| By: | Faustino Prieto; Catalina B. Garc\'ia-Garc\'ia; Rom\'an Salmer\'on G\'omez |
| Abstract: | Carbon dioxide (CO2) emissions have emerged as a critical issue with profound impacts on the environment, human health, and the global economy. The steady increase in atmospheric CO2 levels, largely due to human activities such as burning fossil fuels and deforestation, has become a major contributor to climate change and its associated catastrophic effects. To tackle this pressing challenge, a coordinated global effort is needed, which necessitates a deep understanding of emissions patterns and trends. In this paper, we explore the use of statistical modelling, specifically the lognormal distribution, as a framework for comprehending and predicting CO2 emissions. We build on prior research that suggests a complex distribution of emissions and seek to test the hypothesis that a simpler distribution can still offer meaningful insights for policy-makers. We utilize data from three comprehensive databases and analyse six candidate distributions (exponential, Fisk, gamma, lognormal, Lomax, Weibull) to identify a suitable model for global fossil CO2 emissions. Our findings highlight the adequacy of the lognormal distribution in characterizing emissions across all countries and years studied. Furthermore, to provide additional support for this distribution, we provide statistical evidence supporting the applicability of Gibrat's law to those CO2 emissions. Finally, we employ the lognormal model to predict emission parameters for the coming years and propose two policies for reducing total fossil CO2 emissions. Our research aims to provide policy-makers with accurate and detailed information to support effective climate change mitigation strategies. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.00653&r=ene |
| By: | Miwa Nakai (Faculty of Economics, Fukui Prefectural University, 4-1-1, Matsuoka Kenjojima, Eiheiji-cho, Fukui, 910-1195, Japan); Naonari Yajima (Faculty of Economics, Seijo University, 6-1-20, Seijo, Setagata-ku, Tokyo, 157-0066, Japan); Majah-Leah Ravago (Department of Economics, Ateneo de Manila University, Room 409, Leong Hall, Loyola Heights, Quezon City, Philippines 1108) |
| Abstract: | Energy efficiency of home appliances plays a crucial role in climate mitigation policies, especially considering the increasing energy consumption in developing countries. Particularly in countries with high temperatures such as the Philippines, switching to energy efficient air conditioners (ACs) can make a substantial contribution to both climate mitigation and sustainable development. We conducted a field survey among households with a choice experiment in the Philippines. We investigated the attributes that influence the decision to purchase ACs and to understand the variations in preferences among consumers in the tropics. Utilizing primary data with a broad range of socio-economic characteristics, we find that households have higher willingness-to-pay for energy efficient models. Moreover, in terms of preference variability, certain consumer groups such as AC owners, younger age segments, higher income brackets, and those with higher environmental awareness displayed higher willingness-to-pay. Furthermore, our survey reveals the potential for a significant rebound effect in AC use if households purchase an energy efficient model. Therefore, we emphasise the importance of combining the transition to energy efficient ACs with additional policy measures to reduce wastage and consume energy efficiently across other domains, as a country transitions to more sustainable and cleaner energy. |
| Keywords: | Appliance labelling, Energy-saving behaviour, Choice experiment, Air conditioner, Tropical climate, Philippines |
| JEL: | D12 R11 Q56 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:was:dpaper:2304&r=ene |
| By: | Rodrigo Pizarro; Santaro Sakata; Miguel Cárdenas Rodríguez; Abenezer Zeleke Aklilu; Ekaterina Ghosh |
| Abstract: | The Paris Agreement maps out a path for internationally coordinated efforts to curb global warming. At the centre of the Paris Agreement are Nationally Determined Contributions (NDCs) that establish countries’ plans to mitigate greenhouse gas (GHG) emissions as well as adapt to the impacts of climate change. However, mitigation contributions defined in NDCs are different across countries in terms of target types, coverage of sectors and gases. This makes it challenging to assess progress on mitigation commitments. To complement the UNFCCC efforts, and facilitate the evaluation and monitoring of targets, this paper develops a methodology that harmonises countries’ 2030 mitigation targets in physical units and provide clarity on sector and gas coverage. The results are used to develop the GHG Emission Trends and Targets (GETT) indicators for non-EU countries and the EU-27 covered under the International Programme for Action on Climate (IPAC). The GETT indicators support the analyses of emissions' trajectories by describing historical GHG emission trends and comparing them to NDC emission targets, considering various reference years and indicators, including emissions intensity per capita or per unit of GDP. |
| Keywords: | GHG Emission Trends and Targets, Harmonised indicators, Nationally Determined Contributions, Paris Agreement |
| JEL: | C89 Q54 Y10 |
| Date: | 2024–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:230-en&r=ene |
| By: | Chakraborty, Lekha (National Institute of Public Finance and Policy); Thomas, Emmanuel (JNU) |
| Abstract: | Against the backdrop of fiscal transition concomitant to energy transition policies with climate change commitments, revenue from extractive sector needs a recalibration in subnational fiscal space. Extractive tax is the payment due to the government in exchange for the right to extract the mineral substance. Extractive tax has been fixed and paid in multiple tax regimes, sometimes on the measures of ad valorem (value based) or profits or as the unit of the mineral extracted. Using the ARDL methodology, this paper analyses the buoyancy of extractive revenue across the States in India, for the period 1991-92 to 2022-23 and analysed the short run and long run coefficients and their speed of adjustment. There are no identified structural breaks in the series predominantly because of the homogenous extractive policy regime shift to ad valorem from unit based regime. Our findings revealed that extractive tax is a buoyant source of own revenue, though there is distinct State-specific differentials. The policy implication of our study is crucial for "just transition" related to climate change commitments where extractive industries' tax buoyancy is compared to other tax buoyancy across Indian States, and be used as the base scenario to estimate the loss of revenue when fiscal transition sets in with energy transition policies. |
| Keywords: | fiscal rules ; energy transition ; tax buoyancy ; ARDL ; extractive sector regime |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:24/407&r=ene |
| By: | Melanie Marten (Université de Cergy-Pontoise, THEMA) |
| Abstract: | This paper investigates the impact of a 2016 electricity tax reform on French manufacturing using micro-panel data spanning eight years. The reform intro- duced a tax reduction on electricity use contingent on gross electricity tax liabil- ity exceeding 0.5% of firm value-added. Firms that satisfy the threshold criteria are considered electro-intensive. This paper exploits a Differences-in-Differences (DiD) event study specification to estimate the effect of the tax cut relative to inel- igible firms. On average, electro-intensive firms experienced a relative drop in in their average electricity costs ranging between 8.5% and 12.4% in the post-reform period. Findings also uncover heterogeneous effects across manufacturing sectors. Nevertheless, results do not indicate that the reform had a significant or robust im- pact on either energy use input choice or on economic performance. |
| Keywords: | Electricity tax, Policy Evaluation, Manufacturing, France |
| JEL: | Q48 L5 L6 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ema:worpap:2024-02&r=ene |
| By: | Markus Leippold (University of Zurich; Swiss Finance Institute); Zacharias Sautner (University of Zurich - Department of Banking and Finance; Swiss Finance Institute; European Corporate Governance Institute (ECGI)); Tingyu Yu (University of Zurich - Department of Banking and Finance) |
| Abstract: | A common concern is that ambitious climate policy is—at least in parts—obstructed by corporate lobbying activities. We quantify corporate anti- and pro-climate lobbying expenses, identify the largest corporate lobbyists and their motives, establish how climate lobbying relates to corporate business models, and document whether and how climate lobbying is priced in financial markets. Firms spend on average $295, 921 per year on anti-climate lobbying ($164, 991 on pro-climate lobbying). Recently, firms have tried to camouflage their climate lobbying activities. Large anti-climate lobbyists have more carbon-intensive business models and face more climate-related incidents in the future. Firms that spend more on anti-climate lobbying earn higher returns, probably because of a risk premium. Their stock prices went up when the Waxman-Markey Cap-and-Trade Bill failed, and down when the Inflation Reduction Act was announced. |
| Keywords: | Corporate Lobbying, Climate Change, Stock Returns |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2414&r=ene |
| By: | Ahmed S. Alahmed; Guido Cavraro; Andrey Bernstein; Lang Tong |
| Abstract: | We propose an operating envelopes (OEs) aware energy community market mechanism that dynamically charges/rewards its members based on two-part pricing. The OEs are imposed exogenously by a regulated distribution system operator (DSO) on the energy community's revenue meter that is subject to a generalized net energy metering (NEM) tariff design. By formulating the interaction of the community manager and its members as a Stackelberg game, we show that the proposed two-part pricing achieves a Nash equilibrium and maximizes the community's social welfare in a decentralized fashion while ensuring that the community's operation abides by the OEs. The market mechanism conforms with the cost-causation principle and guarantees community members a surplus level no less than their maximum surplus when they autonomously face the DSO. The dynamic and uniform community price is a monotonically decreasing function of the community's aggregate renewable generation. We also analyze the impact of exogenous parameters such as NEM rates and OEs on the value of joining the community. Lastly, through numerical studies, we showcase the community's welfare, pricing, and compare its members' surplus to customers under the DSO and other OEs arrangements. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.17201&r=ene |
| By: | Best, Frank |
| Abstract: | In its “Fit for 55” program, the European Union (EU) integrates several instruments with the goal of achieving climate neutrality by 2050. One of the cornerstones of the program is the EU Emissions Trading System (EU-ETS), which imposes a levy on CO2 and other greenhouse gas (GHG) emissions, thus internalizing external costs, restoring fair competition, incentivizing sustainable investment and efficiently distributing the remaining greenhouse gas budget through a cost-effective, market-oriented mechanism. This carbon pricing scheme, however, only affects companies which emit GHGs within the EU. Imported products thereby achieve a cost advantage over products produced within the scope of the EU-ETS, leading to competitive pressure on EU-ETS companies and the risk that they might move production facilities outside the scope of the EU-ETS (“carbon leakage”). In order to avoid carbon leakage and encourage cleaner industrial production in partner countries, the EU decided to introduce the Carbon Border Adjustment Mechanism (CBAM) to put a fair price on carbon emissions from the manufacturing of products imported into the EU. The CBAM transitional phase will go into effect on October 1, 2023. Initially, it will only apply to selected industrial products and precursors whose production is particularly carbon intensive and which are deemed to have the highest potential risk of carbon leakage. Once the CBAM is fully active, all importing companies will have to declare the embedded emissions for their products and surrender the corresponding amount of CBAM certificates. It is to be expected that importing companies will strongly rely on their international suppliers to provide information on the embedded emissions. India is both an important trade partner of the EU and, because of its strong reliance on coal power plants, a heavy greenhouse gas emitter both in absolute and relative terms. Importers of products from India into the EU will therefore have to purchase a significant number of carbon allowances under the CBAM regulations. This paper explains the functional mechanism of the CBAM and identifies the product flows from India to the EU for the affected products. It describes the product groups, their importance for Indian companies as well as the future requirements, and is intended to support Indian companies that export to the European Union to prepare for the CBAM requirements both during the transition phase and once the system is fully active. |
| Abstract: | Im Rahmen ihres Programms "Fit for 55" integriert die Europäische Union (EU) mehrere Instrumente mit dem Ziel, bis 2050 Klimaneutralität zu erreichen. Einer der Eckpfeiler des Programms ist das EU-Emissionshandelssystem (EU-ETS), das eine Abgabe auf CO2 und andere Treibhausgasemissionen erhebt und somit externe Kosten internalisiert, fairen Wettbewerb wiederherstellt, nachhaltige Investitionen anregt und das verbleibende Treibhausgasbudget durch einen kosteneffizienten, marktorientierten Mechanismus effizient verteilt. Dieses System zur Bepreisung von Kohlenstoffemissionen betrifft jedoch nur Unternehmen, die Treibhausgase innerhalb der EU emittieren. Importierte Produkte erlangen dadurch einen Kostenvorteil gegenüber europäischen Produkten, was zu Wettbewerbsdruck auf EU-Unternehmen führt. Dieser Druck birgt das Risiko der Verlagerung von Produktionsstätten außerhalb des EU-ETS-Bereichs verlagern ("Carbon Leakage"). Um Carbon Leakage zu vermeiden und eine emissionsarme Produktion in Partnerländern zu fördern, beschloss die EU, den Carbon Border Adjustment Mechanism (CBAM) einzuführen, um einen fairen Preis für CO2-Emissionen importierter Produkte festzulegen. Die Übergangsphase des CBAM ist am 1. Oktober 2023 in Kraft getreten. Anfangs gilt der CBAM nur für ausgewählte Industrieprodukte und Vorprodukte, deren Produktion besonders kohlenstoffintensiv ist und die als besonders gefährdet für Carbon Leakage gelten. Sobald der CBAM vollständig aktiv ist, müssen alle importierenden Unternehmen die eingebetteten Emissionen für ihre Produkte deklarieren und die entsprechende Menge an CBAM-Zertifikaten abgeben. Es ist zu erwarten, dass importierende Unternehmen stark auf ihre internationalen Lieferanten angewiesen sein werden, um Informationen zu den eingebetteten Emissionen bereitstellen zu können. Indien ist sowohl ein wichtiger Handelspartner der EU als auch aufgrund seiner starken Abhängigkeit von Kohlekraftwerken ein siginifikanter Treibhausgasemittent. Importeure von Produkten aus Indien in die EU werden daher unter den CBAM-Vorschriften eine signifikante Anzahl von Kohlenstoffzertifikaten erwerben müssen und abgeben müssen. Dieser Artikel erklärt den funktionalen Mechanismus des CBAM und identifiziert die Produktströme von Indien in die EU für die betroffenen Produkte. Er beschreibt die Produktgruppen, ihre Bedeutung für indische Unternehmen sowie die zukünftigen Anforderungen und soll indischen Unternehmen, die in die Europäische Union exportieren, dabei helfen, sich auf die CBAM-Anforderungen sowohl während der Übergangsphase als auch bei vollständiger Inbetriebnahme des Systems vorzubereiten |
| Keywords: | Aluminium, CBAM, Carbon Border Adjustment Mechanism, Carbon Intensity, Emission Trading Scheme, EU-ETS, India, Imports, Iron & STeel |
| JEL: | Q56 F13 Q58 F18 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esrepo:285311&r=ene |
| By: | Odran Bonnet (Insee); Etienne Fize (Institut des Politiques Publiques, Paris School of Economics); Tristan Loisel (Insee, Crest); Lionel Wilner (Insee, Crest) |
| Abstract: | This article exploits both the crude oil price surge consecutive to the invasion of Ukraine and 2022 fuel excise tax rebates in France as quasi-natural experiments to infer the price sensitivity of fuel demand. Based on granular individual bank account data at the transaction level, we properly disentangle anticipation effects from price effects, and estimate an average price elasticity of -0.31. It varies little with respect to income and location but substantially decreases, in absolute, with respect to fuel spending and is higher for retirees. We evaluate financial and distributional effects of the actual tax policy as well as its impact on CO2 emissions based on counterfactual simulations. We empirically demonstrate that resorting to transfers, be they targeted or not, achieves only imperfect compensation against fuel inflation. However, we show that a policy maker subject to a tight budget constraint and seeking to alleviate excessive losses, relative to income, prefers means-tested transfers to rebates. |
| Keywords: | Commodity taxation; Excise tax; Tax-and-transfer schemes; Fuel price elasticity; Anticipatory behavior; Transaction-level data. |
| JEL: | C18 C51 D12 H23 H31 L71 Q31 Q35 Q41 |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2024-05&r=ene |
| By: | Paul Simshauser |
| Keywords: | Microeconomic reform, electricity transmission, network regulation |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2311&r=ene |
| By: | Immanuel Feld (University of Warwick & Bonn and affiliated with CEPR, CAGE, NIESR, ECONtribute, Grantham Institute); Thiemo Fetzer (Warwick University) |
| Abstract: | Climate action requires significant public- and private sector investment to achieve meaningful reductions in carbon emissions. This paper documents that large-scale austerity, coupled with barriers to flows of data and a lack of (digital) skills in (local) government, may have been a significant barrier to delivering climate action in the form of retrofitting. Decomposing heterogeneity in esti-mated treatment effects of a large-scale energy efficiency savings program that was rolled out through a regression discontinuity design in the early 2010s, we find that both the extent of austerity-induced local budget cuts and poor digital connectivity – may be responsible for up to 30% fewer retrofit installations that counterfactually would have taken place had it not been for austerity. |
| Keywords: | state capacity, austerity, skills, climate action, public economics |
| JEL: | Q54 Q58 H76 C21 O33 R11 H54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:281&r=ene |
| By: | Thiemo Fetzer (University of Warwick & Bonn and affiliated with CEPR, CAGE, NIESR, ECONtribute, Grantham Institute); Callum Shaw (London School of Economics); Jacob Edenhofer (University of Oxford) |
| 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 percent-age 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 inter-generational 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 capac-ity 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 infor-mational 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: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:282&r=ene |
| By: | Arpita Ghosh, Brendon McConnell, Jaime Millan-Quijano. |
| Keywords: | Hedonic Price Models, Energy Performance Certificates, Real Estate. |
| JEL: | R38 Q48 K32 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nva:unnvaa:wp03-2024&r=ene |
| By: | Frankovic, Ivan; Etzel, Tobias; Falter, Alexander; Gross, Christian; Ohls, Jana; Strobel, Lena; Wilke, Hannes |
| Abstract: | This paper presents the methodology applied in the Deutsche Bundesbank's climate transition stress test for the German financial system, see Deutsche Bundesbank (2023). It discusses the construction of the transition scenarios underlying the analysis, including a long-run orderly scenario and a more disruptive short-term carbon price shock. Furthermore, the document shows the methodology for translating scenario impacts onto the asset level, which includes the consideration of firm-level carbon emission data where available. Finally, the impacts on the balance sheets of German banks, funds and insurers are discussed. |
| Keywords: | climate risks, stress testing, climate scenarios, financial stability |
| JEL: | G2 H23 Q5 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubtps:283347&r=ene |
| By: | Clemens Fuest; Andrei Marcu; Michael Mehling |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:econpr:_48&r=ene |
| By: | Michael A. Mehling |
| Keywords: | Supply-side approaches, fossil fuels, offset credits, political economy |
| JEL: | H23 O30 P18 Q54 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2314&r=ene |
| By: | Füchtenhans, M.; Glock, C.H.; Grosse, E.H. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:143346&r=ene |
| By: | Paul Simshauser |
| Keywords: | Electricity markets, energy policy, fuel poverty |
| JEL: | D4 L5 L9 Q4 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2216&r=ene |
| By: | Felix Dammann; Giorgio Ferrari |
| Abstract: | This paper proposes and analyzes a stationary equilibrium model for a competitive industry which endogenously determines the carbon price necessary to achieve a given emission target. In the model, firms are identified by their level of technology and make production, entry, and abatement decisions. Polluting firms are subject to a carbon price and abatement is formulated as an irreversible investment, which entails a sunk cost and results in the firms switching to a carbon neutral technology. In equilibrium, we identify a carbon price and a stationary distribution of incumbent, polluting firms, that guarantee the compliance with a certain emission target. Our general theoretical framework is complemented with a case study with Brownian technology shocks, in which we discuss some implications of our model. We observe that a carbon pricing system alongside installation subsidies and tax benefits for green firms trigger earlier investment, while higher income taxes for polluting firms may be distorting. Moreover, we discuss the role of a welfare maximizing regulator, who, by optimally setting the emission target, may mitigate or revert some parameters' effects observed in the model with fixed limit. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.16401&r=ene |
| By: | Estelle Cantillon; Leticia Pieraerts Garcia De La Cuadra |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/368800&r=ene |
| By: | David Webbe-Wood; William J. Nuttall; Nikolaos K. Kazantzis; Chi Kong Chyong |
| Keywords: | Uncertainty, investment decisions, blue hydrogen, carbon capture and storage under uncertainty, real options, Monte-Carlo simulation |
| JEL: | D81 G11 Q40 |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2309&r=ene |
| By: | Juyong Lee; David M. Reiner |
| Keywords: | Low carbon energy, variable selection models, energy mix, public trust, climate change perceptions, nuclear power, renewables |
| JEL: | B4 C5 P48 Q42 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2303&r=ene |
| By: | Estelle Cantillon; Elise Viadere |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/368801&r=ene |
| By: | Stanley, Leonardo Ernesto |
| Abstract: | El planeta ha sido planteado como un espacio no sujeto a límites, tal la idea de progreso que consideró a la naturaleza un espacio de conquista. La crisis climática viene a demostrar lo errado de dicha visión. Fruto de la concentración de carbono y otros gases de efecto invernadero en la atmósfera, la temperatura promedio global del planeta sigue en aumento. Avanzar con la transición energética deviene un imperativo, y el financiamiento es un aspecto clave en dicho proceso. Postergarlo conlleva riesgos sistémicos, cuyas consecuencias sobre la macroeconomía y el sistema financiero resultan mayúsculas. Ello debe instar a quienes gobiernan a actuar, introducir respuestas de política económica. También debería repensarse desde lo institucional, modificar el andamiaje legal-normativo que termina perpetuando el modelo energético del pasado. Resulta necesario discutir la problemática ambiental, así como lo irreversible del proceso de transición energética. El autor señala los diversos factores que muestran lo irreversible del proceso, los cambios tecnológicos, pero también aquellos de orden institucional o de hábitos de consumo que explican tal tendencia. Pero, la transición no ocurre en un vacío. Motivado por intereses espurios un grupo de actores ejerce presión sobre los gobiernos, para así mantener sus privilegios. Al desinterés de muchos se debe añadir la desinformación que generan unos pocos, todo ello vuelve imprescindible analizar la transición desde una perspectiva multidisciplinaria; una visión de política económica global que presente actores, describa políticas y muestre cómo el poder influye en la toma de decisiones. El libro analiza estos diversos factores y destaca la complejidad del problema y, por ende, la necesidad de abordarlo desde una perspectiva multidisciplinaria. |
| Keywords: | Transición Energética; Crisis Energética; Cambio Climático; |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:4047&r=ene |
| By: | Bekkers, Eddy; Yilmaz, Ayse Nihal; Bacchetta, Marc; Ferrero, Mateo; Jhunjhunwala, Kirti; Métivier, Jeanne; Okogu, Bright E.; Ramos, Daniel; Tresa, Enxhi; Xu, Ankai |
| Abstract: | We explore a global carbon pricing framework to inform the potential coordination of carbon pricing and equivalent policies. The framework has three main features aligning with the current multilateral system for climate action. First, the carbon price is determined by a global average carbon price to achieve emission reductions required to remain on a 1.5-2 degrees Celsius global warming trajectory. The framework further incorporates a set of economy-level criteria determining variation in carbon prices between economies: historical emissions, the current level of economic development, and the economic costs of climate change. Second, a moderate share of carbon pricing revenues is allocated to support lower-income economies, economies with higher costs of climate change and economies with higher economic costs of carbon pricing. Third, the framework allows economies to achieve equivalent carbon emission reductions through the implementation of alternative policy instruments. Simulations with the Global Trade Model show that, under the framework, the projected economic costs of carbon pricing are in proportion to the economy-level criteria, implying higher costs for economies with higher historical emissions, a higher level of development and lower projected costs of climate change. The projected reduction in output and exports in emission-intensive trade-exposed sectors (EITEs) displays only a weak negative correlation with the carbon price level. The framework is not meant as a policy proposal but as a contribution to the discussion on coordination of carbon pricing policies. Such coordination can help to inform the discussion about policy options to prevent fragmentation of carbon pricing and other climate change mitigation policies. Such fragmentation is costly and could lead to the introduction of complementary policies which could come with trade frictions. |
| Keywords: | Carbon pricing, Climate change mitigation, CGE Models |
| JEL: | C68 F18 Q54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wtowps:285362&r=ene |
| By: | Alexandru Petrea (Alexandru cel Bun Military Academy, Chisinau, Republic of Moldova) |
| Abstract: | The European Union has set ambitious targets for renewable energy, aiming to increase the percentage share of renewable energy in gross final energy consumption and promote its use in transportation and heating sectors. Romania, having a significant potential in renewable energy, especially wind and solar energy, can play an important role in achieving these goals. The exploitation of abundant natural resources and the development of production capacities in wind, solar and hydropower can contribute to the transition to a cleaner and more sustainable energy system, bringing economic and environmental benefits to the country and contributing to significant reductions in greenhouse gas emissions. |
| Keywords: | Renewable Energy Source, Energy Transition, Energy Policies, Energy Efficiency, Climate Goals, Sustainable Energy Technologies and Assessments |
| Date: | 2023–06 |
| URL: | http://d.repec.org/n?u=RePEc:smo:raiswp:0286&r=ene |
| By: | Klaus Desmet; Esteban Rossi-Hansberg |
| Abstract: | With average temperature ranging from -20°C at the North Pole to 30°C at the Equator and with global warming expected to reach 1.4°C to 4.5°C by the year 2100, it is clear that climate change will have vastly different effects across the globe. Given the abundance of land in northern latitudes, if population and economic activity could freely move across space, the economic cost of global warming would be greatly reduced. But spatial frictions are real: migrants face barriers, trade and transportation are costly, physical infrastructure is not footloose, and knowledge embedded in clusters of economic activity diffuses only imperfectly. Thus, the economic cost of climate change is intimately connected to these spatial frictions. Building on earlier integrated assessment models that largely ignored space, in the past decade there has been significant progress in developing dynamic spatial integrated assessment models (S-IAMs) aimed at providing a more realistic evaluation of the economic cost of climate change, both locally and globally. This review article discusses this progress and provides a guide for future work in this area. |
| JEL: | F1 Q5 R0 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32197&r=ene |
| By: | Philippe Quirion (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: | All public policy tools designed to promote ecological transition have distributional effects, i.e. they do not affect social groups in the same way, particularly the rich and the poor. This article examines the causes of these distributive effects. The most relevant distinction is not between economic and regulatory tools, but between those that target newly marketed goods and services and those that target all existing goods and services; the latter have a much more marked distributive effect. Neutralizing these effects requires detailed studies that take into account not only household income, but also a whole range of socio-economic characteristics. |
| Abstract: | Les outils économiques pour favoriser la transition écologique et leurs effets distributifs Philippe Quirion-directeur de recherche au CNRS, CIRED Qu'elles soient de nature réglementaire ou économique (taxes, quotas d'émission échangeables), les politiques publiques pour la transition écologique ont un impact différencié selon les groupes sociaux en termes d'émissions polluantes, de prix des biens de consommation ou encore d'emploi. Pour corriger ces inégalités, ces politiques doivent être assorties de compensations et prendre en compte la vulnérabilité multi-factorielle des populations. |
| Date: | 2022–06–21 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04457612&r=ene |
| By: | Shangen Li |
| Abstract: | Does a more transparent climate disclosure policy induce lower emissions? This paper analyzes the welfare consequences of transparency in corporate disclosure regulation in an environment in which regulatory disclosure constitutes the sole avenue for the verification of a firm's emissions. On the one hand, a potential trade-off between disclosure transparency and externality suggests a non-monotonic relationship between them. On the other hand, increased transparency never makes the firm worse off. Consequently, mandating full disclosure is no different from maximizing the firm's private benefit while disregarding the ensuing externality. When the regulator is symmetrically informed about the firm's energy efficiency level, transparency beyond binary disclosure does not lead to welfare improvements. In the presence of information asymmetry, the welfare-maximizing disclosure takes a threshold form: all emissions above the threshold are pooled together, whereas all emissions below are fully disclosed. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.11961&r=ene |
| By: | Bernard Gazier (Centre d'Economie de la Sorbonne); Frédéric Bruggeman (Ex-expert auprès des comités d'entreprise) |
| Abstract: | This paper aims at sketching what should be, in terms of actors, objects and structures, the evolution of the existing social dialogue in order to contribute to triggering and managing the radical changes needed in the field of environment. Our elaboration takes place in a context of little, if any, existing reflection on the connection between the functionning of the labour markets and the urgent changes needed in production and consumption, beyond the so-called "green" or "greening" jobs and the idea of a corporate social and environmental responsibility. We proceed in three steps. We start from the French situation and briefly asset recent changes (1), then introduce a normative theoretical perspective: the "Transitional Labour Markets" (TLM). Their aim is to build and structure collective capacities of transition and projects in the field of work and employment (2). Last, we discuss major changes in terms of coordination and bargaining targets and levers, in order to yield foundations to a renewed social dialogue, able to actively support public policy efforts and initiatives from the citizens (3) |
| Keywords: | Social dialogue; Ecological transition; scarcity; labour market; quality of work |
| JEL: | J22 J24 J50 J62 J80 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:24002&r=ene |
| By: | Thomaßen, Georg; Bruckner, Thomas |
| Abstract: | This paper investigates market-based decarbonization, driven by carbon pricing, and under different regulatory settings. These consist of a conventional energy-only market (EOM), an EOM with operating reserve demand curve (ORDC) and a capacity market (CM). We find that contrary to previous research findings, all markets produce conclusive market outcomes in all stages of decarbonization, as flexible technologies create market signals that ensure the economic viability of renewables. This is relevant for systems that rely on carbon pricing, but also for those relying on out-of-the-market measures to deploy renewables, as it implies that markets can be deregulated again later if carbon prices are sufficiently high. All three regulatory scenarios further achieve close-to-optimal market outcomes, if they are calibrated well. The outcome in CMs, however, is especially prone to suboptimal configurations, relying on several design parameters, which are commonly deducted from weather data and system projections. Varying only one of these parameters induced large changes in the observed generation mix. ORDCs provided more stable results, even if the input parameters differed strongly from optimal values. We therefore recommend to rely on ORDCs to maintain resource adequacy, as they appear to produce lower costs and interfere less with the general market dynamics than CMs. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iirmco:285121&r=ene |
| By: | - |
| Abstract: | Climate change is a key issue on the parliamentary agenda in Latin America and the Caribbean, and its proper management can boost economic development and foster social inclusion in the region. Legislators belonging to the Parliamentary Observatory on Climate Change and Just Transition (OPCC) therefore requested their parliamentary teams, under the supervision of the Economic Commission for Latin America and the Caribbean (ECLAC) office in Brasilia, to prepare this document, which analyses the framework legislation on climate change in eight countries, selected according to criteria of diversity and representation in OPCC —Argentina, Brazil, Chile, Colombia, Costa Rica, Guatemala, the Plurinational State of Bolivia and Uruguay— and highlights some good practices that offer opportunities for improvement. One of the conclusions drawn from a comparative analysis is that this type of legislation is generally enacted with a broad consensus, evolves over time, and tends to regulate institutional frameworks for climate policy and the economic aspects of climate change management. However, other elements appear less frequently, such as mitigation targets or comprehensive approaches to just transition strategies. |
| Date: | 2024–01–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68878&r=ene |
| By: | Reichelstein, Stefan (U of Mannheim and Stanford U) |
| Abstract: | Current corporate disclosures regarding carbon emissions lack commonly accepted accounting rules. The carbon accrual accounting system described here takes the rules of historical cost accounting for operating assets as a template for generating a Carbon Emissions (CE) balance sheet and flow statement. The asset side of the CE balance sheet reports the carbon emissions embodied in operating assets. The liability side conveys the firm's cumulative direct emissions into the atmosphere as well as the cumulative emissions embodied in goods acquired from suppliers less those sold to customers. Flow statements report the cradle-to-gate carbon footprint of goods sold during the current period. Taken together, balance sheets and flow statements generate key indicators of a company's past, current and future performance with regard to carbon emissions. |
| JEL: | M41 M48 Q53 Q54 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:ecl:stabus:4123&r=ene |
| By: | Pille-Riin Aja; Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Sébastien Houde (UNIL - Université de Lausanne = University of Lausanne) |
| Abstract: | The adoption of air conditioning (AC) could grow exponentially across Africa under the joint effect of acute warming, sustained income growth and rapid urbanization. The implications for greenhouse gas emissions will crucially depend on the energy efficiency of the models adopted. Little is known, however, about how energy efficiency information is conveyed to consumers in these markets. To fill this gap, we gathered data on cooling appliances' characteristics from Africa's largest e-commerce platform, serving 13 countriess—Algeria, Cameroon, Côte d'Ivoire, Egypt, Ghana, Kenya, Morocco, Nigeria, Senegal, South Africa, Tanzania, Tunisia, and Uganda. We find that less than 10% of the AC models available on the marketplace (N=1, 229) have information disclosed about their energy performance. Information disclosure appears to be highly idiosyncratic with weak strategic motives. This overall lack of information about energy efficiency represents an important challenge for enforcing energy performance standards and steering demand toward energy-efficient cooling appliances. |
| Keywords: | energy efficiency; climate adaptation; air conditioning; Africa; e-commerce; webscraping |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04456844&r=ene |
| By: | Scherrer, Aline; Helferich, Marvin; Speth, Daniel; Link, Steffen |
| Abstract: | The electrification of heavy-duty road transport and logistics operations presents a significant challenge in meeting CO2 reduction goals. Despite increasing attention to battery-electric trucks (BETs) as a primary strategy among manufacturers, their market share remains limited in Europe and Germany. Logistics companies, as primary users of heavy-duty vehicles (HDVs), face various challenges such as tight budgets, time constraints, and diverse operational needs, which significantly influence the adoption of BETs. Previous studies have identified general key obstacles including purchase price, charging infrastructure availability, vehicle range, payload limitations, total ownership costs, technology perception, and operational adaptations. However, further investigation is needed to understand company-specific requirements and operations of different logistics segments, especially regarding charging infrastructure limitations. This study employs a mixed methods approach to explore logistic companies' perspectives on charging infrastructure and BET adoption. A survey of German logistics companies, followed by semi-structured interviews, provides insights into current fleet operations, attitudes towards BETs, and motivations for electrification. The survey findings highlight the diverse vehicle types and driving profiles within logistics fleets, with a focus on identifying most readily electrifiable trucks (RETs) based on usage patterns. Analyses of survey data, conducted mainly through descriptive statistics, reveal the complexities of trip planning, on-site charging infrastructure, and public charging implications for BET adoption. Interviews with selected respondents further delve into company characteristics, daily operations, usage intentions, and barriers related to BET adoption and charging infrastructure. The results indicate that the regularity and plannability of trips differs across tour types and distances, impacting the potential integration of BETs in operations. Tour regularity varies greatly for individual vehicles beyond urban applications, impacting the flexibility needed for charging. The longest coherent parking time is predominantly spent on private property, with home depots being more important than client locations. Challenges for establishing and using charging infrastructure include the lack of medium voltage grid connections for fast charging at home depots, heterogeneous conditions at client waiting and loading areas, and uncertainties regarding the availability and operational integration of public charging infrastructure. Companies in the sample operating a large number of RETs also hold the most positive attitudes towards BETs, with some already deploying such vehicles. Factors influencing the engagement of logistics companies in fleet electrification include personal motivations, growing customer demands for decarbonised transport, and regulatory requirements. Methodological limitations of the study include a bias towards large fleets in the sample, limiting extrapolation of findings to the broader market. Key recommendations include addressing barriers to at-home and client location charging to support fleet electrification efforts effectively. The findings provide insights into the operational considerations and motivations driving charging infrastructure deployment and fleet electrification. Furthermore, they offer implications for policymakers and industry stakeholders aiming to accelerate the transition to electric HDVs. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:285361&r=ene |
| By: | Farhad Billimoria; Paul Simshauser |
| Keywords: | Electricity markets, risk trading, project finance, renewables, energy storage |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2304&r=ene |
| By: | Könneke, Jule; Adolphsen, Ole |
| Abstract: | The outcome of the 28th UN Climate Change Conference shows that international cooperation remains possible despite today's challenging geopolitical situation. Instead of the feared blockade, an agreement was reached for the first time - some three decades after the start of the COP process - to move away from fossil fuels in energy systems. Overall, the steps agreed in Dubai are a compromise that sends a political signal short of what is necessary from a scientific perspective. On the one hand, international climate cooperation continues to be characterized by traditional conflicts between developing countries and industrialized nations (issues of global justice, financial commitments), with new trade tensions and what at times amounted to an obstructionist attitude among a handful of countries compounding the difficulties. On the other hand, dynamic North-South coalitions have formed in the negotiation tracks on 'loss and damage' and the global energy transition. These must be further strengthened as the starting point for lasting alliances against fossil fuel interests. German climate foreign policy can make an important contribution by undertaking consistent diplomatic efforts to implement structural reforms of the international financial system and by offering attractive partnerships. |
| Keywords: | World Climate Conference, COP28, Global North, Global South, Russia's war of aggression against Ukraine, energy security, Global Stocktake (GST), nationally determined contributions (NDCs), carbon border adjustment mechanism (CBAM), Intergovernmental Panel on Climate Change (IPCC) |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpcom:284703&r=ene |
| By: | Adeline Gu\'eret; Wolf-Peter Schill; Carlos Gaete-Morales |
| Abstract: | Electrifying the car fleet is a major strategy for mitigating greenhouse gas emissions in the transport sector. However, electrification alone will not solve all the negative externalities associated with cars. In light of other problems such as street space as well as concerns about the use of mineral resources for battery electric cars, reducing the car fleet size would be beneficial, particularly in cities. Carsharing could offer a way to reconcile current car usage habits with a reduction in the car fleet size. However, it could also reduce the potential of electric cars to align their grid interactions with variable renewable electricity generation. We investigate how electric carsharing may impact the power sector in the future. We combine three open-source quantitative methods, including sequence clustering of car travel diaries, a probabilistic tool to generate synthetic electric vehicle time series, and an optimization model of the power sector. For 2030 scenarios of Germany with a renewable share of at least 80%, we show that switching to electric carsharing only moderately increases power sector costs. In our main setting, carsharing increases yearly power sector costs by less than 100 euros per substituted private electric car. This cost effect is largest under the assumption of bidirectional charging. It is mitigated when other sources of flexibility for the power sector are considered. Carsharing further causes a shift from wind power to solar PV in the optimal capacity mix, and may also trigger additional investments in stationary electricity storage. Overall, we find that shared electric cars still have the potential to be operated largely in line with variable renewable electricity generation. We conclude that electric carsharing is unlikely to cause much damage to the power sector, but could bring various other benefits, which may outweigh power sector cost increases. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.19380&r=ene |
| By: | Elisabeth Christen |
| Abstract: | In Ergänzung zum reformierten EU-Emissionshandelssystem stellt der EU-Grenzausgleich einen zentralen Baustein dar, um internationale Unterschiede in den Klimaambitionen und in der Bepreisung von CO2-Emissionen auszugleichen und eine klimaneutrale EU bis 2050 zu erreichen. Mit dem Instrument setzt sich die EU zum Ziel, die Wettbewerbsfähigkeit europäischer Produzenten trotz verschärfter EU-Klimaziele und steigender CO2-Kosten zu sichern und das Risiko von Carbon Leakage, die Verlagerung von Emissionen in Länder mit weniger strengen Emissionsvorschriften, zu vermindern. Die Modellsimulationen der Studie "Trade and Welfare Effects of New Trade Policy Instruments" zeigen, dass ein klimapolitischer Alleingang der EU nur ein sehr begrenztes Potenzial zur Verringerung der globalen Emissionen aufweist und moderate Wohlstandseinbußen mit sich bringt. Im Gegensatz dazu erzielt eine klimapolitische Kooperation die größten globalen Emissionsminderungen und schafft durch Vermeidung von Klimafolgekosten Wohlfahrtsgewinne. Ein gemeinsamer Klimaklub der EU mit den USA, dem Vereinigten Königreich, Kanada und Japan senkt die globalen Emissionen um 14, 8%, dies entspricht einer jährlichen Reduzierung der CO2-Emissionen um 5, 46 Mrd. t. |
| Date: | 2024–02–28 |
| URL: | http://d.repec.org/n?u=RePEc:wfo:rbrief:y:2024:i:2&r=ene |
| By: | Chi Kong Chyong; David M. Reiner; Rebecca Ly; Mathilde Fajardy |
| Keywords: | Combined-cycle gas turbines, carbon capture and storage, unit-commitment models, optimisation, flexible carbon capture, solvent storage |
| JEL: | C61 Q47 Q48 Q52 Q55 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2308&r=ene |
| By: | Costa, Francisco J M (FGV EPGE Brazilian School of Economics and Finance); Szerman, Dimitri; Assunção, Juliano |
| Abstract: | This paper estimates the impacts of ten recently built hydroelectric power plants in the Brazilian Amazon on deforestation. Using the inventory of all sites with hydropower potential yet undeveloped, we apply the synthetic control method to estimate the causal impact of each power plant on forest loss. Overall, the construction of the ten plants contributed to 21 percent of the observed forest loss within a 50-kilometer radius of the construction site. Notably, this impact is solely attributed to four plants. In at least three of these plants, construction licenses were granted despite technical recommendations against them. In contrast, the remaining plants, which received technical clearance from the environmental agency, have negligible effects. These findings highlight the effectiveness of robust environmental regulations and underscore their vulnerability to high-level political interference. |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:6y7vk&r=ene |
| By: | Pierre-Henri Bono (CEVIPOF, Sciences Po); Alain Trannoy (Aix-Marseille Univ., CNRS, AMSE, Marseille, France) |
| Abstract: | The Airplane Carbon Barter (ACB) mechanism is a sort of Personal Carbon Trading (PCT) system for allocating emissions allowances to French air travelers, combined with a barter mechanism at the shadow carbon price of €100 in the first year, and following the price growth trajectory defined in the Quinet II report for the following years. Based on the latest available data, each French citizen would have an emission allowance of 0.4 tons of carbon in the first year. The modus operandi is similar to a Covid-type app, with a QR code required at check-in by airlines to obtain a boarding pass. The personal carbon account is reserved for French nationals or residents of France. We estimate that the TCA could lead to a 6% reduction in total emissions in the first year, for a market exchange value of around €1.5 billion. The TCA is also a transfer mechanism that redistributes purchasing power essentially from the last decile to the first decile, which could increase its purchasing power by 0.5%. We also propose a variant of the ACB mechanism to make it consistent with the EU-ETS. |
| Keywords: | Avion, Carbone, Emissions, droits, Redistribution |
| JEL: | Q52 Q54 Q58 R48 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:aim:wpaimx:2409&r=ene |
| By: | von Graevenitz, Kathrine; Rottner, Elisa; Richter, Philipp M. |
| 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, Melitz model, Manufacturing |
| JEL: | F18 H23 L60 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283591&r=ene |
| By: | Tiago Cavalcanti; Kamiar Mohaddes; Hongyu Nian; Haitao Yin |
| Keywords: | Pollution, human capital, knowledge, innovation, China |
| JEL: | O15 O30 O44 Q51 Q56 |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2301&r=ene |
| By: | Yener Altunbas (Bangor University); Xiaoxi Qu (Bangor University); John Thornton (University of East Anglia) |
| Abstract: | We present and estimate a Bernanke et al. (1999)-type dynamic general equilibrium model modified to allow the authorities to use monetary and fiscal policy to shape bank behavior in support of climate goals. In the model, central bank refinancing and reserve requirements are employed to support bank lending for environmentally friendly projects at lower rates of interest than for other projects. At the same time, fiscal policy supports green bank lending through loan guarantees, which also reduces the relative cost of borrowing by green firms. Under reasonable parameters of the model, rediscount lending is shown to be the most effective policy tool for directing bank lending to support climate goals |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:aoz:wpaper:310&r=ene |
| By: | Jim Krane |
| Keywords: | Saudi Arabia, Net Zero 2060, decarbonisation, oil and natural gas, Saudi Aramco, greenhouse gas (GHG), carbon dioxide (CO2), emissions offsets, renewables, hydrogen, energy subsidy reform, carbon intensity, carbon capture and storage (CCS), emissions clusters, credible commitment, Paris Agreement NDC, climate pledge, peak oil demand, Scope 1, 2 and 3 emissions |
| JEL: | Q01 Q4 P16 P18 Q32 Q35 Q38 Q54 Q58 H23 |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2217&r=ene |
| By: | Serge Darolles (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Gaëlle Le Fol (DRM - Dauphine Recherches en Management - Université Paris Dauphine-PSL - PSL - Université Paris sciences et lettres - CNRS - Centre National de la Recherche Scientifique); Yuyi He (CUHK - The Chinese University of Hong Kong [Hong Kong]) |
| Abstract: | We examine how the information contained in corporate social performance isincorporated into stock prices. Pastor et al. (2021) propose an equilibrium modelfocusing exclusively on the demand part coming from investors (discount rate story).They show that brown assets should have higher expected returns than green assetsbecause investors have green tastes. In line with theoretical model of Pedersen etal. (2021), Derrien et al. (2022) analyze how the impact of negative ESG news onfirms' future value, focusing exclusively on the expectations of futures sales (cashflows story). To understand the net effect of ESG on stocks returns, we must reconcilethe two stories and analyze the perception of customers and investors' green realinvestment of firms and the effects of their actions and interactions. Neither theory, nor empirical studies give a clear conclusion on the sign of the effect because they onlylook at one channel at a time. We decompose here the effect of "S" scores on expectedreturns via changes in institutional ownership, and show that the negative effect candisappear when allowing for both the cash flows and the discount rate parts in theempirical model. Finally, we show that "E", "S", and "G" qualities are not perceivedthe same by customers and investors changing the overall effect on stocks returns. |
| Date: | 2023–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04462749&r=ene |
| By: | Kevin Moran; Dalibor Stevanovic; Stéphane Surprenant |
| Abstract: | Economic policy and central bank and government decisions are generally based on economic forecasts that represent “the best estimates of the future trajectory of economic variables of interest that analysts can make using available data.” Prudent management suggests taking into account the risks associated with forecasts. We use a vector autoregression (VAR) approach to produce macroeconomic forecasts conditional on four risk scenarios: a high oil price, a U.S. recession, a tight labor market and restrictive monetary policy. Our results show that these scenarios represent important risk factors for the evolution of the Canadian economy. In particular, the scenario of high oil prices is rather positive for the Canadian economy, while an American recession could lead us into a recession. A very tight labor market results in additional price increases, while the very restrictive monetary policy scenario is associated with a slight rise in the unemployment rate and a lower inflation rate. La politique économique et les décisions des banques centrales et des gouvernements s’appuient généralement sur des prévisions économiques qui représentent « les meilleures estimations de la trajectoire future des variables économiques d’intérêt que les analystes peuvent établir en utilisant les données disponibles ». Or, une gestion prudente suggère de prendre en compte les risques associés aux prévisions. Nous utilisons une approche par vecteurs autorégressifs (VAR) pour produire des prévisions macroéconomiques conditionnelles à quatre scénarios de risque : un prix du pétrole élevé, une récession américaine, un marché d’emploi tendu et une politique monétaire restrictive. Nos résultats montrent que ces scénarios représentent des facteurs de risque importants pour l’évolution de l’économie canadienne. En particulier, le scénario de prix de pétrole élevé est plutôt bénéfique pour l’économie canadienne tandis qu’une récession américaine nous plonge dans une récession. Un marché d’emploi très tendu se reflète dans des hausses de prix supplémentaires, tandis que le scénario sur la politique monétaire très restrictive est associé à une légère hausse du taux de chômage et un taux d’inflation plus bas. |
| Keywords: | Economic forecasts, risk scenarios, VAR, macroeconomic fluctuations, conditional forecasts, Prévisions économiques, scénarios de risque, VAR, fluctuations macroéconomiques, prévisions conditionnelles |
| JEL: | E32 F41 F44 |
| Date: | 2024–03–11 |
| URL: | http://d.repec.org/n?u=RePEc:cir:cirpro:2024rp-02&r=ene |
| By: | Altenburg, Tilman; Pegels, Anna; Böhl Gutierrez, Mauricio; Brandi, Clara; Fuhrmann-Riebel, Hanna; Jauregui Fung, Franco; Malerba, Daniele; Never, Babette; Stamm, Andreas; Strohmaier, Rita; Volz, Ulrich |
| Abstract: | While polluting industries are still flourishing, the green economy is on the rise. In low- and middle-income countries, the resulting opportunities are mostly underexplored. The Federal Ministry for Economic Cooperation and Development (BMZ)'s new strategy for 'Sustainable economic development, training and employment' shifts gears towards a green and inclusive structural transformation, recognising that only a just transition approach with credible co-benefits for societies can gain societal acceptance (BMZ, 2023). It is now essential to provide evidence of how a greener economy can offer direct economic benefits to national economies and the majority of their citizens. Ongoing cooperation portfolios need to be adjusted to this new and timely orientation in the BMZ's core strategy. We suggest focusing on the following six areas: Eco-social fiscal reform should be a priority area in at least 15 of the over 40 partner countries with whom Germany cooperates on 'sustainable economic development', systematically linking revenues from pricing pollutions to pro-poor spending. Development policy should promote inclusive green finance (IGF) through market-shaping policies, such as an enabling regulatory framework for the development of digital IGF services and customer protection in digital payment services. It should also build policymakers' capacity in developing IGF policies and regulation. Support in the area of sustainable, circular con-sumption should focus on eco-design, and repair and reuse systems. It should build systems design capa-cities and behavioural knowledge, to integrate con-sumers in low-carbon and circular industry-consumer systems. This will need new collaborations with actors shaping systems of consumption and production, for instance with supermarkets or the regulators of eco-design guidelines. Germany should strategically support national hydro-gen strategies, including a just transition approach and prioritising green over other 'colours' of hydrogen. This means strengthening industrial policy think tanks, technology and market assessment agencies, technology-related policy advice as well as skills development, and exploring distributive mechanisms to spread the gains and ensure societal acceptance. Sustainable urbanisation should be a more explicit priority, given its potential for job creation and enterprise development. This means supporting partners in integrating land-use, construction and mobility planning for compact, mixed-use neighbourhoods, and anti-cipating green jobs potential and skills required within cities. Lastly, Germany should support green industrial policy and enlarge policy space in trade rules by promoting the core institutions of industrial policy, for example, technology foresight agencies, coordinating platforms for industry upgrading, and policy think tanks, and working towards reforms of the trading system, such as rules to allow clearly defined green industrial subsidies, preferential market access for green goods and services from low-income countries, or technology transfer. It is evident for all areas that the challenges in low- and middle-income countries will differ from those in high-income countries. It is, therefore, imperative that successful programmes are co-developed with local partners. A just green transition that harvests benefits beyond a healthier environment and is supported by societies will then be achievable. |
| Keywords: | Green industrial policy, structural transformation, development policy, green growth, green finance, eco-social fiscal reform, sustainable cities, sustainable consumption, green trade, green hydrogen |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:idospb:284723&r=ene |
| By: | Hinterlang, Natascha; Martin, Anika; Röhe, Oke; Stähler, Nikolai; Strobel, Johannes |
| Abstract: | Climate change and climate policy will have far-reaching economic implications, thereby also posing new challenges for macroeconomic analysis. This is partly because climate risks have an important global dimension. Moreover, climate change and climate polices are likely to affect different economic sectors to varying degrees. Hence, in order to adequately gauge the macroeconomic implications of climate risks, models with sufficient regional and sectoral differentiation are needed. Against this background, we developed the environmental multi-sector dynamic stochastic general equilibrium model EMuSe. This paper presents the main features of the benchmark closed-economy flexible-price model, an open-economy extension of the model, a variant of the model with price-setting frictions and selected applications to illustrate key transmission channels. In order to give those who are interested the opportunity to gain more experience with EMuSe, the model codes are published together with this documentation. |
| Keywords: | climate risks, DSGE, production linkages, sectoral heterogeneity |
| JEL: | E3 E6 F4 H3 Q5 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubtps:280900&r=ene |
| By: | David Newbery |
| Keywords: | Transmission fees, regulation, off-shore wind, LMP |
| JEL: | D02 D44 H54 L51 L94 Q42 |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2307&r=ene |
| By: | Peter Gibbard; Kevin Remmy |
| Abstract: | We estimate a structural model of electricity retailer choices accommodating various sources of consumer inertia, including inattention, limited information, switching costs, and product differentiation. The model disentangles the relative importance of different frictions. We estimate our model using individual-level data of all retailer switches and queries on a price comparison website in New Zealand. We find that price comparison tools strongly impact market structure and consumer surplus. However, mandating all consumers search for alternatives has stronger effects on market structure and consumer surplus gains. Our results help policymakers design policies that improve consumer choices and effective competition in retail markets. |
| Keywords: | consumer inertia, consumer search, retail electricity markets, structural demand estimation |
| JEL: | D12 D83 L13 L94 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_516&r=ene |
| By: | Michael A. Mehling |
| Keywords: | Climate change, spillover effects, emissions leakage, supply-side approaches, technology, offset credits |
| JEL: | H23 K33 O30 Q54 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2313&r=ene |
| By: | Chung Yi See; Vasco Rato Santos; Lucas Woodley; Megan Yeo; Daniel Palmer; Shuheng Zhang; Ashley Nunes |
| Abstract: | Although electric vehicles are less polluting than gasoline powered vehicles, adoption is challenged by higher procurement prices. Existing discourse emphasizes EV battery costs as being principally responsible for this price differential and widespread adoption is routinely conditioned upon battery costs declining. We scrutinize such reasoning by sourcing data on EV attributes and market conditions between 2011 and 2023. Our findings are fourfold. First, EV prices are influenced principally by the number of amenities, additional features, and dealer-installed accessories sold as standard on an EV, and to a lesser extent, by EV horsepower. Second, EV range is negatively correlated with EV price implying that range anxiety concerns may be less consequential than existing discourse suggests. Third, battery capacity is positively correlated with EV price, due to more capacity being synonymous with the delivery of more horsepower. Collectively, this suggests that higher procurement prices for EVs reflects consumer preference for vehicles that are feature dense and more powerful. Fourth and finally, accommodating these preferences have produced vehicles with lower fuel economy, a shift that reduces envisioned lifecycle emissions benefits by at least 3.26 percent, subject to the battery pack chemistry leveraged and the carbon intensity of the electrical grid. These findings warrant attention as decarbonization efforts increasingly emphasize electrification as a pathway for complying with domestic and international climate agreements. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.00458&r=ene |
| By: | J.P. Chaves; R. Cossent; T. Gómez San Román; P. Linares; M. Rivier |
| Keywords: | Electricity market, energy transition, renewables |
| JEL: | Q41 L51 L94 |
| Date: | 2023–03 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2305&r=ene |
| By: | Grundmann, Justus; Silberbach, Anna; Auria, Laura |
| Abstract: | Carbon taxation is currently one of the most salient risks with respect to the transition to a low carbon economy for European enterprises. Although there are ample scientific studies that analyse the economic effect on a macro scale (climate stress tests etc.), there is not much literature to be found at a granular level. The present exercise aims at analysing the potential financial risks resulting from a carbon intensive production conveyed through an increased tax burden. It is based on the idea of scenario analysis and uses the European Emissions Trading System (EU ETS) as a data source. The EU ETS also serves in a broader sense as a stance for the institutional framework that is assumed in the exercise. The developed model delivers a stressed probability of default estimated at the company level on the basis of the individual financial ratios. It can serve as a tool in different ways: It can up-date the rating relevant balance sheet information to a more current state and is thus helpful in the operative rating business, when political and economic developments are dynamic or include turning-points. It can be extended beyond the EU ETS data to explore hypothetical scenarios and long term prospects, too. Carbon intensive production will very likely be in the focus of transition enforcing policy measures in the coming years. The respective enterprises will most likely be required to change their business and/or production model. So the outcome of adverse hypothetical scenarios can be interpreted as measure of the structural pressure to adapt and its impact on the creditworthiness of the company. The paper will outline the developed methodology and present some results for German enterprises. |
| Keywords: | carbon taxation risk, climate change risk, transition risk, (in-house) credit assessment, scenario analysis, EU ETS |
| JEL: | E50 E58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubtps:283346&r=ene |