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on Energy Economics |
| By: | Karsten Neuhoff |
| Keywords: | Price cap, security of supply, gas saving, consumer welfare |
| JEL: | D30 D47 D61 L95 |
| Date: | 2022–06 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2212&r=ene |
| By: | Frédéric Gonand; Pedro Linares; Andreas Löschel; David Newbery; Karen Pittel; Julio Saavedra; Georg Zachmann |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:econpr:_49&r=ene |
| By: | Hugo Rojas-Romagosa |
| Abstract: | Russia’s war in Ukraine has disrupted the supply of natural gas for many European countries, triggering an energy crisis and affecting energy security. We simulate the medium-term effects of these trade disruptions and find that most European countries have limited GDP losses but those more dependent on Russian natural gas face moderate losses. European fossil fuel consumption and emissions are reduced and after accounting for the war impacts, achieving Europe’s emission targets becomes slightly less costly. In terms of energy security, the war eliminates European energy dependency from Russian imports, but most of the natural gas and oil imports will be substituted by other suppliers. We also find that constructing a new Russian pipeline to China does not provide significant macroeconomic benefits to either country. |
| Keywords: | Energy supply; energy security; trade disruptions; greenhouse gas emissions; computable general equilibrium |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/039&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) |
| Date: | 2023–01–12 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04469217&r=ene |
| By: | H. Kava; K. Spanaki (Audencia Business School); T. Papadopoulos; S. Despoudi; O. Rodriguez Espindola; M. Fakhimi |
| Abstract: | We introduce the BDA dynamics and explore the associated applications in renewable energy sector with a focus on data-driven innovation. Our study draws on the exponential growth of renewable energy initiatives over the last decades and on the paucity of literature to illustrate the use of BDA in the energy industry. We conduct a qualitative field study in the UK with stakeholder interviews and analyse our results using thematic analysis. Our findings indicate that no matter if the importance of the energy sector for ‘people's well- being, industrial competitiveness, and societal advancement, old fashioned approaches to analytics for organisational processes are currently applied widely within the energy sector. These are triggered by resistance to change and insuicient organisational knowledge about BDA, hindering innovation opportunities. Furthermore, for energy organisations to integrate BDA approaches, they need to deal with challenges such as training employees on BDA and the associated costs. Overall, our study provides insights from practitioners about adopting BDA innovations in the renewable energy sector to inform decision-makers and provide recommendations for future research |
| Keywords: | Big data analytics, Energy sector, Renewable energy, Difusion of, innovations, Field study |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04478933&r=ene |
| By: | Paul Simshauser |
| Keywords: | Electricity, regulated utilities, dividend policy |
| JEL: | D25 D80 G32 L51 Q41 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2210&r=ene |
| By: | Valero, Anna |
| Abstract: | The urgent need for tackling climate change brings with it the need to understand the impacts of net zero policies on the labour market. Various approaches have been taken in attempts to measure and describe green jobs, and compare them to their non-green counterparts. This essay focuses on the UK and summarises findings from an occupational approach, which classifies jobs as being green when they involve new tasks or skills required by the transition to net zero, or when they are likely to see increased demand due to the transition. Drawing on this analysis, and other complementary approaches, this essay sets out evidence that green jobs have the potential to be good jobs, requiring higher skills and paying well. However, they have not been accessible to all workers to date. In the next phase of the transition, net zero is expected to be a net creator of jobs. Overall, this is largely a story of change in existing jobs and sectors–very few jobs will be phased out. The transition and its impacts on the labour market will be difficult in specific sectors and places, requiring targeted programmes and broader skills policies to ensure that net zero can not only be delivered, but delivered in an inclusive way. |
| Keywords: | green skills; net zero; green jobs; ES/T014431/1; ES/V009478/1; ES/W010356/1; This article draws on research funded on a number of grants; including from Candriam Institute for Sustainable Development for LSE research on green jobs and the Nuffield Foundation for Economy 2030 Inquiry work on green jobs. |
| JEL: | J20 Q50 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122227&r=ene |
| By: | Michael Jakob (MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research); Stavros Afionis (Cardiff University, University of Leeds); Max Åhman (Lund University); Angelo Antoci (UNISS - Università degli Studi di Sassari = University of Sassari [Sassari]); Marlene Arens (Lund University); Fernando Ascensão (cE3c - Centre for Ecology - Evolution and Environmental Changes - ULISBOA - Universidade de Lisboa = University of Lisbon); Harro van Asselt (University of Eastern Finland, Universiteit Utrecht / Utrecht University [Utrecht]); Nicolai Baumert (Lund University); Simone Borghesi (EUI - European University Institute, UNISI - Università degli Studi di Siena = University of Siena); Claire Brunel; Justin Caron (HEC Montréal - HEC Montréal); Aaron Cosbey (IISD - International Institute for Sustainable Development); Susanne Droege (Stiftung Wissenschaft und Politik); Alecia Evans (Purdue University [West Lafayette]); Gianluca Iannucci (UniFI - Università degli Studi di Firenze = University of Florence); Magnus Jiborn (Lund University); Astrid Kander (Lund University); Viktoras Kulionis (ETH Zürich - Eidgenössische Technische Hochschule - Swiss Federal Institute of Technology [Zürich]); Arik Levinson (GU - Georgetown University [Washington]); Jaime de Melo (UNIGE - Université de Genève = University of Geneva); Tom Moerenhout (Columbia University [New York]); Alessandro Monti (UCPH - University of Copenhagen = Københavns Universitet); Maria Panezi (UNB - University of New Brunswick); 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); Lutz Sager (GU - Georgetown University [Washington]); Marco Sakai (University of York [York, UK]); Juan Sesmero (Purdue University [West Lafayette]); Mauro Sodini (University of Pisa - Università di Pisa, VSB - Technical University of Ostrava [Ostrava]); Jean-Marc Solleder (UNIGE - Université de Genève = University of Geneva); Cleo Verkuijl (FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Valentin Vogl (Lund University); Leonie Wenz (MCC - Mercator Research Institute on Global Commons and Climate Change - PIK - Potsdam Institute for Climate Impact Research); Sven Willner (PIK - Potsdam Institute for Climate Impact Research) |
| Abstract: | Economic analysis has produced ample insights on how international trade and climate policy interact (1). Trade presents both opportunities and obstacles, and invites the question of how domestic climate policies can be effective in a global economy integrated through international trade. Particularly problematic is the potential relocation of production to regions with low climate standards. Measures to level the playing field, such as border carbon adjustments (BCAs), may be justified for specific emissions-intensive and trade-exposed sectors but need to be well-targeted, carefully navigating tensions that can arise between the desire to respect global trade rules and the need to elaborate and implement effective national climate policies. The conformity of specific trade measures with international trade and climate change law is not entirely clear. Yet, clarity is needed to ensure that the industry actors affected will find the rules predictable and be able to adhere to them. |
| Date: | 2022–06–24 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04466107&r=ene |
| By: | Olivier Blanchard (Peterson Institute for International Economics); Christian Gollier (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Jean Tirole (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement) |
| Abstract: | Climate change poses an existential threat. Theoretical and empirical research suggest that carbon pricing and green R&D support are the right tools, but their implementation can be improved. Other policies, such as standards, bans, and targeted subsidies, also all have a role to play, but they have often been incoherent, and their implementation is delicate. |
| Keywords: | Climate change, Carbon price, Green R&D, Carbon border adjustment, Climate finance |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04472569&r=ene |
| By: | Samuel Pienknagura |
| Abstract: | This paper assesses the role of climate policies as a catalyst of low carbon technologies deployment through foreign direct investment (FDI). Leveraging detailed cross-border project-level information, it identifies “green” FDI and finds that a higher number of active climate policies is associated with higher levels of green FDI inflows. Importantly, climate policies do not appear to be linked to lower levels of non-green projects, suggesting relatively small overall costs from the green transition. The paper also finds heterogeneity across sectors and policy instruments. The association between climate policies and green projects is particularly strong in energy and manufacturing, and when the composition of the recipient's climate portfolio is tilted towards binding policies (e.g., taxes and regulation) and expenditure measures. Finally, results point to policy spillovers, whereby larger climate policy portfolios in the source country are linked to higher green FDI outflows, but green subsidies can discourage them. This, in turn, implies that subsidies could hamper efforts to deploy low-carbon technologies across countries. |
| Keywords: | Climate policies; FDI; low carbon technologies; renewable energy |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/046&r=ene |
| By: | Rottner, Elisa |
| Abstract: | Rising energy prices might lead to adjustments along the supply chain and make firms outsource energy-intensive processes. This could lead to carbon leakage. I provide empirical evidence whether energy price-induced offshoring occurs using firm-level data on energy use, imports, and material purchases. I document that import shares in German industry have increased between 2009 and 2013, and that energy prices correlate positively with imports. Despite this positive correlation, I show in a quasi-experimental setup that a sudden drastic drop in electricity prices has not led firms to significantly reduce their imports or their domestic material purchases relative to an unaffected control group. This holds for very electricityintensive firms; for firms using easily tradable goods; and both for regular importers with a trade network and occasional/non-importers. |
| Keywords: | Offshoring, Energy Prices, Climate Policy, Manufacturing |
| JEL: | F14 F18 L60 Q41 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283593&r=ene |
| By: | Reichelstein, Stefan |
| Abstract: | Current corporate disclosures regarding carbon emissions lack generally 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 Carbon Emissions (CE) balance sheets and flow statements. 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 company's annual corporate carbon footprint calculated as the cradle-to-gate carbon footprint of goods sold during the current period. Taken together, balance sheets and flow statements generate key performance indicators of a company's past, current and future performance in the domain of carbon emissions. |
| JEL: | M41 M48 Q53 Q54 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:283586&r=ene |
| By: | Richard S. J. Tol |
| Abstract: | A new version of the database for the meta-analysis of estimates of the social cost of carbon is presented. New records were added, and new fields on the impact of climate change and the shape of the welfare function. The database was extended to co-author and citation networks. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2402.09125&r=ene |
| By: | Kohnert, Dirk |
| Abstract: | Human activity has transformed the planet at a pace and scale unprecedented in recorded history, causing irreversible damage to communities and ecosystems. Countries have focused their capacities on economic growth, with too little attention to externalities in terms of environmental quality. The world will not avoid catastrophic warming unless wealthy nations accelerate their reduction of own emissions and help poorer countries to do the same. North America and Europe have contributed 62 % of carbon dioxide emissions since the industrial revolution, while Africa has contributed only 3%. However, it is in sub-Saharan Africa (SSA) that the impacts are most severe and the people most vulnerable. Developed countries, in their own interests, should focus on ways to help developing countries phase out fossil fuels and transition to renewable energy. However, there are tensions between richer and poorer nations over who should pay the costs of global warming. Rich countries have a responsibility to act more quickly than their low-income counterparts. Yet governments continue to subsidise the use of fossil fuels, and banks and companies still invest more in polluting industries than in climate solutions. The consumption habits of the richest 10 % of people generate three times more pollution than those of the poorest 50 %. Emerging economies such as China and India, which plan to achieve net-zero emissions by 2060 and 2070 respectively, should join the developed world in accelerating emissions reductions. It is not just the way we produce and use energy that needs to change quickly. It's the way we consume food, the way we protect nature. It's everything, everywhere, all at once. The agricultural sector is particularly vulnerable, especially in SSA countries where agriculture is central to the economy. Among the top eight countries with the highest cumulative net emissions from agriculture, forestry and other land use are two SSA countries, Nigeria and DR Congo. Most of these emissions are embodied in trade and are caused by consumption in regions such as Europe, the United States and China. The establishment of the Loss and Damage Fund agreed at COP27 will not be enough to turn the tide, nor will it necessarily translate into climate finance commitments, given the lack of progress in delivering the promised US$100 billion in annual climate finance from rich countries. African countries themselves need to reflect on their own strengths and step up their efforts in a timely and substantial way. |
| Keywords: | Environmental sustainability; Carbon neutrality; climate change; Carbon dioxide; environmental pollution; greenhouse gas; fossil fuel; renewable energy; Governance; European Union; highly industrialized countries; emerging economies; BRICS; Sub-Saharan Africa; South Africa; Nigeria; DR Congo; |
| JEL: | E21 E22 E23 E26 F18 F54 F64 G38 H23 H84 H87 I15 I31 K32 N17 N37 N57 O13 O44 O55 Q54 Z13 |
| Date: | 2024–02–17 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120210&r=ene |
| By: | Natalia Fabra; Catarina Pintassilgo; Mateus Souza |
| Abstract: | Free-Floating Car-Sharing (FFCS) services allow users to rent electric vehicles by the minute without restrictions on pick-up or drop-off locations within the service area of the rental company. Beyond enlarging the choice set of mobility options, FFCS may reduce congestion and emissions in cities, depending on the service’s usage and substitution patterns. In this paper, we shed light on this by analyzing the universe of FFCS trips conducted through a leading company in Madrid during 2019. We correlate FFCS usage patterns with data on traffic conditions, demographics, and public transit availability across the city. We find complementarities between FFCS and public transport in middle-income areas with scarce public transport options. Moreover, we find that the use of FFCS peaks earlier than overall traffic and is broadly used during the summer months. This suggests that FFCS may have smoothed road traffic in Madrid, contributing to a reduction in overall congestion. |
| Keywords: | Car-sharing, shared mobility, road congestion, electric vehicles. |
| JEL: | R41 Q52 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2024_512&r=ene |
| By: | Nelson, Clare; Rowangould, Gregory |
| Abstract: | As governing bodies continue to explore mileage fees as an alternative to the gas tax, the uncertainty surrounding public support remains a critical barrier to policy uptake. This study examines the extent to which public perceptions of mileage fees are guided by misinformation or lack of information using a national, internet-based survey. Hypothetical voting opportunities were used to gather respondent support for mileage fees, coupled with educational treatments that address mileage fee fairness, privacy, and costs. The findings indicate that respondents are largely misinformed or lack information about mileage fees and the gas tax. Pre-education, only 32% of respondents supported the policy, but post-education, 46% of respondents supported the policy. Through binomial, multinomial, and fixed effect modeling, we examined the factors associated with policy support, changes in policy support, and the educational treatments. Ultimately, our findings indicate that education can play a key role in increasing support for a mileage fee policy as an alternative to the gas tax. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Mileage fees, gas tax, transportation funding, information choice questionnaire, equity, education |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt4ft4h3xt&r=ene |
| By: | Robert A. Ritz |
| Keywords: | Cap-and-trade, carbon border adjustment, carbon leakage, industrial competitiveness |
| JEL: | H23 L11 Q54 |
| Date: | 2022–05 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2211&r=ene |
| By: | Batabyal, Amitrajeet; Yoo, Seung Jick |
| Abstract: | We utilize the public good features of Ganges water pollution clean-up and conduct a game-theoretic analysis of an economy consisting of two Indian cities, Kanpur and Varanasi, through which the Ganges flows. We show how heterogeneity in the two cities in population and the value placed on pollution clean-up determines whether clean-up ought to be centralized or decentralized. Under decentralization, in several scenarios, it is optimal for only one city to clean-up pollution. Under centralization, this exclusive clean-up of pollution is suboptimal but the amount of pollution cleaned up can be larger or smaller than the amount cleaned up under decentralization. We note the broader environmental and public health implications of pollution control and contend that the two differences between Kanpur and Varanasi and the use of majority voting are key factors to consider when pondering how much pollution to clean up in this economy and in other settings. |
| Keywords: | Clean-up, Ganges River, Population Difference, Values Difference, Water Pollution |
| JEL: | D81 Q53 Q56 |
| Date: | 2023–06–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120289&r=ene |
| By: | Santeramo, Fabio G.; Ferrari, Emanuele; Toreti, Andrea |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iatrtp:340815&r=ene |
| By: | Marc Gronwald; Sania Wadud; Kingsley Dogah |
| Abstract: | This paper analyses the informational efficiency of the WTI crude oil markets using a recently proposed quantitative measure for market inefficiency. The procedure measures the extent to which observed oil price behaviour deviates from the Random Walk benchmark which represents an efficient market. The key findings are, first, that crude oil market inefficiency varies over time. Second, abrupt increases in inefficiency occur during extreme episodes such as the price downturns witnessed in 2008, 2014, and early 2020, as well as the begin of the Ukraine war in 2022. Third, the paper puts forward the interpretation of oil market inefficiency as oil market turbulence. This occurs when the quantity of information the market has to process is exceptionally high. Fourth, the paper demonstrates that oil market turbulence (or the drivers behind it) have negative macroeconomic consequences. |
| Keywords: | crude oil markets, efficient market hypothesis, quantity of information, fractional integration |
| JEL: | C22 E30 G14 Q02 Q31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10995&r=ene |
| By: | Carballo, Jerónimo; Marra de Artiñano, Ignacio; Sztajerowska, Monika; Volpe Martincus, Christian |
| Abstract: | Sustainability has become an imperative. Understanding the effects of countries policies thereon has therefore acquired vital importance. This is particularly the case with ubiquitous policies such as investment promotion. In this paper, we address this timely policy question from an environmental perspective. We examine whether and how investment promotion policies affect Latin American economies emissions of pollutants. To do so, we create and use a unique dataset that combines data on multinational firms location, investment promotion agencies (IPAs) assistance, and pollutant-specific emission intensities across countries and sectors over time. Our analysis yields three main findings. First, multinational firms operating in Latin America have higher emission intensities than those located in Europe and that this is primarily driven by their sectoral distribution. Second, IPA client portfolios are biased toward more polluting multinational firms and this is mainly associated with the type of sectors targeted by the IPAs. Third, while on average the effects of IPA assistance are similar across multinational firms with different pollution levels, these are stronger on more polluting ones within priority sectors. These findings highlight the need and relevance of data-based evidence to uncover potential tensions and balance different economic and sustainability goals. |
| Keywords: | Investment Promotion;Multinational Production;Sustainability |
| JEL: | F23 F14 F13 L23 L25 L52 O25 |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:idb:brikps:13306&r=ene |
| By: | Miquel-Flores, Ixart; Reghezza, Alessio; Buchetti, Bruno; Perdichizzi, Salvatore |
| Abstract: | This study investigates the underlying reasons for banks’ continued support of fossil fuel-based firms and examines the role of public guaranteed loans (PGLs) in redirecting resources towards greener economic activities, thereby facilitating the climate transition process. Using a unique pan-European credit register dataset, we combine supervisory bank data with firm-level greenhouse gas emission data and financial information. Our analysis yields three main findings. Firstly, European banks perceive lending to green companies as riskier compared to their brown counterparts, a phenomenon we term as the “green-transition risk.” Secondly, we provide evidence that during the COVID-19 pandemic, European banks have strategically leveraged PGLs to channel resources towards environmentally sustainable activities, thereby augmenting the proportion of green loans in their portfolios and partially shifting the inherent “green-transition risk” to European governments and citizens. Lastly, our investigation reveals a banking preference for awarding PGLs to financially robust green firms over less profitable, highly indebted green firms, which could pose significant challenges for green businesses requiring financial support during the COVID-19 crisis. JEL Classification: G20, G21, G28 |
| Keywords: | climate change, credit risk, green lending, public guaranteed loans |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242916&r=ene |
| By: | Zeynep Kantur (Baskent University) |
| Abstract: | A stranded asset refers to economic assets that lose their ability to contribute value within their own sector and in other sectors due to the decarbonization of production processes required to meet global climate targets. This process involves either idling or abandoning a portion of physical capital, which can harm the sector in which it is employed and propagate negative effects throughout the entire economy. This study examines the exposure of sectors in Latvia to the risk of physical capital stranding resulting from decarbonizing the economy. Using Input-Output Tables and capital stock data, we quantify the effects of stranded assets and find that the mining and quarrying sector has the highest external asset stranding multipliers. The sectors in Latvia most vulnerable to the impacts of global fossil stranding include land transportation and pipeline transport (H49), electricity, gas, steam, and air conditioning (D35), and agriculture (A01). |
| Keywords: | capital utilization, stranded assets, Input-Output Model, Ghosh multipliers |
| JEL: | C67 E22 L72 |
| Date: | 2024–02–21 |
| URL: | http://d.repec.org/n?u=RePEc:ltv:dpaper:202401&r=ene |
| By: | Immanuel Feld; Thiemo Fetzer |
| 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 estimated 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 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10990&r=ene |
| By: | Schwartz, Demitrius; Batabyal, Amitrajeet |
| Abstract: | The potential of rooftop solar power has been identified as a main driver of clean energy adoption in an urban environment. While residential solar projects have lower capacity than commercial systems, residential solar represents most of the installation base for rooftop solar projects. Rooftop solar adoption in the commercial market lags residential solar installation. To better understand why this is the case, we conduct a case study of a small, manufacturing firm. Based on the firm's energy demand and the physical attributes of its location, we study a 25-kilowatt solar array using the National Renewable Energy Laboratory’s (NREL) System Advisor Model (SAM). Our empirical study is used to evaluate the economic prospects of a rooftop solar installation project for the firm under study. This analysis sheds light on the financial ramifications of the adoption of solar panels by small, commercial firms in New York state. |
| Keywords: | Decision-Making, Incentive, Photovoltaic System, Solar Energy, Small Business |
| JEL: | D81 M21 Q42 |
| Date: | 2023–12–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120361&r=ene |
| By: | Manuel Alejandro Cardenete; M. Carmen Lima; Ferran Sancho |
| Abstract: | TWe study the role that the productive structure plays in determining carbon dioxide (CO2) emissions by industry. Specifically, we distinguish and isolate the interdependencies originating from the structure of the demand for inputs from those resulting from the supply structure. This separation has the advantage of enabling a better identification of the causal origin of emissions and allows the establishment of a catalog of industries based on their characteristics as demanders or suppliers of inputs. This information, linked to the different nature of demand or supply, can be relevant for designing more effective emission containment measures. The empirical basis of the analysis utilizes input-output data for Spain in 2020, while the methodological platform is an adaptation of the hypothetical extraction method (HEM) |
| Keywords: | Demand-induced emissions, Supply-induced emissions, Selective extractions |
| JEL: | C67 D57 Q51 |
| Date: | 2024–03–19 |
| URL: | http://d.repec.org/n?u=RePEc:aub:autbar:974.24&r=ene |
| By: | Kuhls, Sonia |
| Abstract: | This paper examines the potential of the foundational economy as an industrial policy strategy for addressing the challenges posed by the socio-ecological transformation. Grounded in Marxist and feminist theories, the analysis sets out to deconstruct the jobs-versus-environment dilemma, revealing that dignified employment and climate mitigation are jointly imperiled by the capitalist mode of production. Nonetheless, ambitious environmental policies will necessitate structural economic changes and hence labor reallocations. In this context, the paper seeks to establish links between the foundational economy concept - which is primarily concerned with economic development and industrial policy - and sustainability research. I contend that the foundational economy emerges as a promising avenue for addressing potential adverse effects of the socio-ecological transformation for two main reasons. First, it serves as a practical guide for necessary labor reallocations, proposing the absorption of workers into low-carbon, welfare-oriented sectors. Second, it functions as a discursive strategy that directly engages with workers'self-perception and concerns, prioritizing community health and offering socially sustainable and meaningful employment. Despite these merits, the paper underscores the need for the foundational economy to address feminist critiques of labor and unpaid social reproduction to fully unlock its transformative potential. Additionally, the role of trade unions in supporting and shaping the foundational economy warrants further investigation, urging future research to delineate the positionality and strategies of trade unionsin the consolidation of this economic approach. |
| Keywords: | employment, foundational economy, industrial policy, social reproduction, socio-ecological transformation, trade unions |
| JEL: | B51 B54 J21 J51 L52 Q56 Q57 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:285376&r=ene |
| By: | Leila Ben Salem; Montassar Zayati; Ridha Nouira; Christophe Rault |
| Abstract: | This paper investigates the co-movements of oil prices and the exchange rates of 10 top oil-importing and oil-exporting countries. Firstly, we estimated the total static spillover index based on vector autoregressive (VAR) models. Secondly, we adopted the recent DCC-GARCH-CONNECTEDNESS approach proposed by Gabauer (2020) to conduct a time-varying analysis that investigates the directionally dynamic connectedness among WTI and Shanghai crude oil futures and currency markets. We explored contagion spillover volatility by focusing on a sample of major oil-exporting and oil-importing countries using daily data from 4 March 2018 to 25 August 2023. We analysed this relationship during four phases: the entire sample; before COVID-19; during COVID-19; and during the Russian‒Ukrainian war. Our results confirm the persistence of volatility for the series studied, thereby justifying the use of the dynamic connectedness approach. Our findings also reveal strong evidence of volatility transmission between oil prices and exchange-rate markets. However, the COVID-19 pandemic and the Russian‒Ukrainian war have altered this link. The connectedness between the two markets (petrol and exchange) was stronger at the beginning of the crisis period and then gradually depreciated in value over time. Our findings reveal that exchange rates for both oil-exporting and oil-importing countries are more sensitive to oil price shocks during crises than in normal periods. This suggests that volatility contagion between these two markets continues to exist, thus emphasising the role of oil price shocks as net transmitters across the network during extreme scenarios. |
| Keywords: | Shanghai futures, WTI, exchange rates, DCC-GARCH-CONNECTEDNESS, Covid-19, Russian-Ukraine war |
| JEL: | C50 Q40 Q43 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10989&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 paper exploits the introduction of the German carbon tax in 2021 as well as excise tax rebates on fuel in both France and Germany, consecutive to the 2022 oil crisis, to infer how fuel tourism responds to changes in relative prices. Based on French high-frequency transaction-level data issued from individual banking accounts, we find substantial displacement between foreign and domestic consumption. When relative prices increase by 1%, the relative cross-border demand decreases by 7.7%. In border areas, the elasticity of tax revenue with respect to foreign prices is as high as 0.5. Moreover, there is no substantial difference in demand response to either carbon or excise tax. Such empirical evidence illustrates the importance of coordinating tax policy within EU. |
| Keywords: | Commodity taxation; Tax coordination; Carbon pricing; Fuel tourism; Transaction-level data. |
| JEL: | H20 H23 H77 R48 |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:crs:wpaper:2024-06&r=ene |
| By: | Pica-Téllez, Andrés; Cid, Francisca; Ferrer, Jimy; Francos, Martin; Dishmey, Yanna |
| Abstract: | Este documento, que forma parte de un conjunto de estudios nacionales realizados por la División de Desarrollo Sostenible y Asentamientos Humanos de la Comisión Económica para América Latina y el Caribe (CEPAL) en apoyo a los sistemas nacionales de inversión pública de América Latina y el Caribe, presenta la estimación del precio social del carbono para la República Dominicana. En el documento se incluyen un breve análisis sobre la conveniencia de usar el precio social del carbono como parte de la evaluación de los proyectos de inversión y opciones metodológicas para definir ese precio. Se dan a conocer distintas experiencias internacionales sobre su uso y algunos valores sugeridos de precios sociales del carbono estimados por organismos internacionales. Tomando en cuenta las características de cada metodología, sus ventajas y desventajas, sus necesidades de información y la disponibilidad en el país, se seleccionó como mejor alternativa el costo social del carbono para la República Dominicana. Del estudio surgen recomendaciones para utilizar un precio social del carbono de 26 dólares de 2021 por tonelada de carbono. Además, se realiza una estimación preliminar de los valores proyectados para 2025 y 2030, sobre la base del modelo dinámico integrado de cambio climático y economía (Dynamic Integrated Climate-Economy -DICE) y el análisis de políticas del efecto invernadero (Policy Analysis of Greenhouse Effect -PAGE), usando la tasa de descuento social decreciente. |
| Date: | 2024–01–15 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68810&r=ene |
| By: | Bopha Chhun; Deepika Sehdev; Amy Cano Prentice; Miguel Cárdenas Rodríguez; Ivan Haščič |
| Abstract: | This paper presents tagging methodologies for 22 environmental domains in the OECD Policy INstruments for the Environment (PINE) database, including seven domains on environmental protection (air pollution, water pollution, soil pollution, solid waste, ozone layer, noise and radiation), six domains on natural resource management (fisheries, forests, freshwater, renewable energy, fossil fuels and minerals) and nine cross-cutting domains (climate change mitigation, climate change adaptation, land degradation, biodiversity, ocean, chemicals management, energy efficiency, circular economy and mercury). The environmental domains in the PINE database support tracking progress towards domestic and international environmental objectives. Tagging environmental domains allows harmonised comparisons across countries, years and policy instrument types. |
| Keywords: | deposit-refund schemes, environmental policy, environmental protection, fees, market-based instruments, natural resource management, subsidies, taxes, tradable permits, voluntary approaches |
| JEL: | H25 H27 H71 H72 P48 Q1 Q2 Q3 Q4 Q5 R48 |
| Date: | 2024–03–18 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaaa:232-en&r=ene |
| By: | Nelson, Clare; Rowangould, Gregory |
| Abstract: | In the United States, mileage fees, or road user charges, are being explored as an alternative to motor fuel taxes, often called “gas taxes.” The search for alternatives is motivated by rising fuel efficiency standards and the increasing number of electric vehicles on the road. These factors have diminished the revenue-generating capacity of gas taxes. While mileage fees are a more stable and fuel-agnostic transportation funding source, they face criticism and low levels of public support due to concerns about costs, protection of drivers’ location and privacy, and perceptions that they would raise taxes on low-income and rural households. Researchers from the University of Vermont Transportation Research Center used data from over 360, 000 Vermont vehicles to assess the financial and equity impacts of replacing the Vermont state gas tax with a revenue-neutral mileage fee of 1.5 cents per mile. The researchers then surveyed 623 car drivers in northern New England and 2, 114 drivers around the US, before and after offering them an educational experience about mileage fees. The educational experience included videos and quiz-style questions. It covered reasons for a switch to mileage fees, fairness across income and community types, and a personalized cost comparison between the gas tax and mileage fee, based on each respondent’s vehicle and travel information. This brief summarizes the findings from that research and provides implications for the field. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Mileage fees, gas tax, transportation funding, information choice questionnaire, equity, education |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt88k6z1zq&r=ene |
| By: | Van Vyve, Mathieu (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | Identifying when a given threshold has been breached in the global temperature record has become of crucial importance since the Paris Agreement. However there is no formally agreed methodology for this. In this work we show why local smoothing methodologies like the moving average and other climate modeling based approaches are fundamentally ill-suited for this purpose, and propose a better one, that we call the minmax average. It has strong links with the isotonic regression, is conceptually simple and is arguably closer to the intuitive meaning of ”breaching the threshold” in the climate discourse, all favorable features for acceptability. When applied to the global mean surface temperature anomaly (GMSTA) record from Berkeley Earth, we obtain the following conclusions. First, the rate of increase has been ~+0.25◦C per decade since 1995. Second, based on this new estimate alone, we should plausibly expect the GMSTA to reach 1.49◦C in 2023 and not go below that on average in the medium-term future. When taking into account the record temperatures of the second half of 2023, not having breached the 1.5◦C threshold already in July 2023 is only possible with record long and/or deep La Nina in the following years. |
| Date: | 2024–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:cor:louvco:2024004&r=ene |
| By: | Lee, Jae Yoon (Korea Institute for Industrial Economics and Trade); Lee, Go Eun (Korea Institute for Industrial Economics and Trade) |
| Abstract: | The steel industry, which has been pivotal to the growth of the Korean manufacturing sector, remains a pillar of the Korean economy amid an ongoing transition into an advanced economy driven by cutting-edge technologies and services. As climate change looms as the predominant issue on almost all countries’ policy radar, however, the Korean steel industry faces significant challenges ahead, with rising pressure to achieve environmental sustainability. In this report, we analyze the structure and characteristics of the steel industry and its value chain, comparing its competitiveness to international counterparts with a view toward identifying implications for policy that might enhance the competitiveness of the Korean steel industry. Korea is the world’s fourth-largest steelmaker. But despite this, Korean steelmakers cannot rest on their laurels, and should strive to maintain their global position by accelerating electric-arc furnace production and shifting toward a low-carbon, high-value-added structure. In this paper we highlight the need for developing eco-friendly technologies such as hydrogen-based reduction methods, boosting product and value chain competitiveness, and securing robust legal, institutional, and infrastructure investment to ensure a sustainable future for the industry. |
| Keywords: | steel; steel industry; climate change; emissions; greenhouse gases; sustainability; electric arc furnaces; electric arc steel; green steel; hydrogen reduction |
| JEL: | L61 Q01 Q54 Q55 Q56 |
| Date: | 2023–12–29 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2023_020&r=ene |
| By: | Hackmann, Angelina; Lindner, Vincent; Pelizzon, Loriana; Riedel, Max |
| Abstract: | This paper addresses the need for transparent sustainability disclosure in the European Auto AssetBacked Securities (ABS) market, a crucial element in achieving the EU's climate goals. It proposes the use of existing vehicle identifiers, the Type Approval Number (TAN) and the Type-Variant-Version Code (TVV), to integrate loan-level data with sustainability-related vehicle information from ancillary sources. While acknowledging certain challenges, the combined use of TAN and TVV is the optimal solution to allow all stakeholders to comprehensively assess the environmental characteristics of securitised exposure pools in terms of data protection, matching accuracy, and cost-effectiveness. |
| Keywords: | Securitisation, Car Loans, Sustainable Finance, Regulation |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:safewh:285378&r=ene |
| By: | Massimiliano Caporin (Department of Statistical Sciences, University of Padova, Via Cesare Battisti 241, 35121 Padova, Italy); Petre Caraiani (Institute for Economic Forecasting, Romanian Academy, Romania; Bucharest University of Economic Studies, Romania); Oguzhan Cepni (Copenhagen Business School, Department of Economics, Porcelaenshaven 16A, Frederiksberg DK-2000, Denmark; Ostim Technical University, Ankara, Turkiye); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | This paper explores how climate risks impact the overall systemic stress levels in the United States (US). We initially apply the TrAffic Light System for Systemic Stress (TALIS) approach that classifies the stock markets across all 50 states based on their stress levels, to create an aggregate stress measure called ATALIS. Then, we utilize a nonparametric causality-in-quantiles approach to thoroughly assess the predictive power of climate risks across the entire conditional distribution of ATALIS, accounting for any data nonlinearity and structural changes. Our analysis covers daily data from July 1996 to March 2023, revealing that various climate risk indicators can predict the entire conditional distribution of ATALIS3, particularly around its median. The full-sample result also carries over time, when the nonparametric causality-in-quantiles test is conducted based on a rolling-window. Our findings, showing that climate risks are positively associated with ATALIS over its entire conditional distribution, provide crucial insights for investors and policymakers regarding the economic impact of environmental changes. |
| Keywords: | State stock markets, Systemic stress, Climate risks, Quantile predictions |
| JEL: | C21 C32 C53 G10 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202407&r=ene |
| By: | Liepold, Constanze (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Fabianek, Paul (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | The Greenhouse Gas (GHG) Mitigation Quota is a unique instrument in Europe that redistributes money from high emission to low emission fuel markets, while forcing fuel distributors to reduce the average emissions of their fuels. This paper presents the design of the German 2022 GHG Quota, places it in the context of environmental policy instruments, and examines its impact on the affected fuel markets in relation to other environmental policy instruments. We aim to identify the strengths and weaknesses of the GHG Quota Trading as an alternative to allowance trading and carbon taxes, deliver results that can be applied in industry and policy making, and provide a basis for further research. Field research was conducted in the form of expert interviews. Furthermore, intermediaries and brokers were contacted via email and asked for transaction data. In addition, a qualitative literature review was conducted and publications of responsible authorities as well as relevant legal texts, were used to gather information. We find that the GHG Quota Trading overlaps with the instruments emission standards and emission trading scheme and therefore falls under the category of tradable performance standards. However, it also contains aspects of a subsidy and interacts directly or indirectly with several different markets |
| Keywords: | GHG Quota; environmental policy instrument; poolers |
| JEL: | A11 B55 |
| Date: | 2023–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2023_009&r=ene |
| By: | Mr. Simon Black; Mr. Ruud de Mooij; Vitor Gaspar; Ian W.H. Parry; Karlygash Zhunussova |
| Abstract: | Internationally coordinated climate mitigation policies can effectively put the world on a path toward achieving the agreed Paris temperature goals. Such coordination could be initiated by large players, such as China, the US, India, the African Union, and the European Union. We find that the implications for fiscal revenues over time will be shaped by a combination of rising carbon prices, the gradual erosion of existing fuel tax bases, and possible revenue sharing arrangements. Public spending rises during the transition to build green public infrastructure, promote innovation, and support clean technology deployment. Countries will also need financing for compensating vulnerable households and industries, and to transfer funds to poor countries. With well-designed climate-fiscal policy relying on carbon pricing, global decarbonization will have anything from moderately positive to moderately negative impacts on fiscal balances in high-income countries. For middle and low-income countries, net fiscal impacts are generally positive and can be significant. Revenue sharing at the global level would make an historical contribution to breaching the financial divide between rich and poor countries. |
| Keywords: | Climate mitigation policy; Fiscal impact; Global coordination; Carbon pricing |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/045&r=ene |
| By: | Victor Ajayi; Michael G. Pollitt |
| Keywords: | Total factor productivity, incentive regulation, corporate reorganisations, gas networks, data envelopment analysis |
| JEL: | C23 D24 L51 L94 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2214&r=ene |
| By: | Lee, Sul-Ki (Korea Institute for Industrial Economics and Trade) |
| Abstract: | South Korea's active hydrogen industry policy has fueled significant growth, with the number of firms increasing 56 percent by 2021 and industry-wide revenue rising 474 percent. Participation by large corporations led to this rapid expansion, but our analysis identifies further key steps: 1) developing and localizing core materials and technologies to transform the industry into a new growth engine, and 2) incentivizing small and medium enterprises to participate, sustaining the momentum. This study proposes two key policy actions to strengthen the position of the Korean hydrogen industry: 1) foster targeted demand, particularly in the mobility sector, and 2) bolster the supply chains of core materials for hydrolysis and fuel cells. |
| Keywords: | hydrogen; hydrogen energy; alternative energy; renewable energy; green hydrogen; hydrogen policy; hydrogen industry; hydrogen fuel cells; transportation industry; hydrogen supply chains; Korea; KIET |
| JEL: | Q41 Q42 Q48 Q55 Q58 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kietrp:2023_022&r=ene |
| By: | Murau, Steffen |
| Abstract: | Dieser Aufsatz zeichnet den Wandel der monetären Architektur und der damit einhergehenden Praxis der Emission von Staatsanleihen in Preußen und dem Deutschen Kaiserreich von 1740 bis 1914 nach, um die zeitgenössischen Vorstellungen über das angemessene Verhältnis zwischen dem Finanzministerium, der Zentralbank und dem privaten Bankensystem in Fragen der Emission von Staatsschulden zu beleuchten. Dazu werden drei Institutionen als "Protagonisten" diskutiert - die Preußisch Königliche Bank, die Seehandlung und die Disconto-Gesellschaft - und durch vier Phasen der preußischen und deutschen Geschichte begleitet: das feudale Preußen von Friedrich II. bis zur Niederlage gegen Napoleon (1740-1806); von den Stein-Hardenberg'schen Reformen bis zur Märzrevolution (1807-1848); das nachrevolutionäre Preußen mit dem Aufstieg Bismarcks, seinen drei Kriegen und der Gründung des Deutschen Kaiserreiches (1849-1871); und Preußen im Deutschen Kaiserreich in der ersten Ära der Globalisierung (1871-1914). Vor dem Hintergrund der monetären Architektur als konzeptionellem Rahmen ergeben sich aus der Analyse drei wesentliche Erkenntnisse. Erstens haben bilanzexterne Fiskalagenturen (off-balance-sheet fiscal agencies, OBFAs) schon eine Schlüsselrolle bei der Emission und Verwaltung von Staatsanleihen gespielt, bevor sich Zentralbanken und Finanzministerien im modernen Sinne entwickelt hatten. Dies wird an der institutionellen Rolle der Seehandlung deutlich, die während der Napoleonischen Kriege als Erste mit der Emission von preußischen Staatsanleihen begann. Zweitens haben Zentralbanken innerhalb des öffentlich-privaten Spektrums im Laufe der Zeit ihre Rolle verändert. Die staatliche Preußische Königliche Bank wurde durch die Umwandlung in die hybride Preußische Bank wesentlich funktionstüchtiger und besser zu kontrollieren. Als sie 1875 in die Reichsbank umgewandelt wurde, entschied man sich für eine vollständig private Eigentümerstruktur. Drittens führten die wirtschaftliche Liberalisierung nach 1848 und die zunehmende notwendige Nutzung privater Mittel für die Kriegsfinanzierung zum Aufkommen der Konsortialemission von Staatsanleihen. Die Disconto-Gesellschaft, die eine zentrale Rolle im Preußen-Konsortium und im Reichsanleihekonsortium spielte, war führend daran beteiligt, ein neues Verhältnis zwischen privaten Finanzinstituten und dem Staat zu etablieren. |
| Keywords: | Fiskalpolitik, Verschuldung, Institutionen, Geschichte |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:dzimps:285320&r=ene |
| By: | Bantle, Melissa |
| Abstract: | The paper uses a machine learning technique to build up a screen for collusive behavior. Such tools can be applied by competition authorities but also by companies to screen the behavior of their suppliers. The method is applied to the German retail gasoline market to detect anomalous behavior in the price setting of the filling stations. Therefore, the algorithm identifies anomalies in the data-generating process. The results show that various anomalies can be detected with this method. These anomalies in the price setting behavior are then discussed with respect to their implications for the competitiveness of the market. |
| Keywords: | Machine Learning, Cartel Screens, Fuel Retail Market |
| JEL: | C53 K21 L44 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hohdps:285380&r=ene |
| By: | Tianyu Li; Ciwei Gao; Michael G. Pollitt; Tao Chen; Hao Ming |
| Keywords: | Power system reform (PSR), social cost benefit analysis (SCBA), electricity market, industrial and commercial electricity price |
| JEL: | L94 |
| Date: | 2022–09 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2213&r=ene |