|
on Energy Economics |
| By: | Nicolò Gnocato (Bank of Italy) |
| Abstract: | This paper studies the optimal conduct of monetary policy in the presence of heterogeneous exposure to energy price shocks between the employed and the unemployed, as it is documented by data from the euro-area Consumer Expectations Survey: higher energy prices weigh more on the unemployed, who consume less and devote a higher proportion of their consumption to energy. I account for this evidence into a tractable Heterogeneous-Agent New Keynesian (HANK) model with Search and Matching (S&M) frictions in the labour market, and energy as a complementary input in production and as a non-homothetic consumption good: energy price shocks weigh more on the jobless, who consume less due to imperfect unemployment insurance and, since preferences are non-homothetic, devote a higher share of this lower consumption to energy. Households' heterogeneous exposure to rising energy prices induces an endogenous trade-off for monetary policy, whose optimal response involves partly accommodating core inflation so as to indirectly sustain employment and, therefore, prevent workers from becoming more exposed to the shock through unemployment. |
| Keywords: | heterogeneous agents, New Keynesian, unemployment risk, energy shocks, optimal monetary policy, endogenous trade-off |
| JEL: | E21 E24 E31 E32 E52 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1450_24&r=ene |
| By: | Hinterlang, Natascha; Jäger, Marius; Stähler, Nikolai; Strobel, Johannes |
| Abstract: | The dependency on imported essential production inputs poses a threat of abrupt price hikes and shortages, potentially triggered by political events. The energy crisis resulting from the Russian war of aggression is an example. This paper investigates whether governments should bolster production via transfers or cost subsidies in the event of a crisis, utilizing a dynamic multi-sector economic model that is calibrated to Germany and incorporates endogenous firm entry and exit. Our findings suggest that subsidizing production costs is more beneficial for economic activity and welfare, provided the energy demand due to the subsidy does not significantly influence the price of the essential production input. If it does, this approach could become exceedingly expensive. In such scenarios, it is economically more efficient to provide lump-sum transfers to firms. The effectiveness of these policies ultimately hinges on their impact on the price of the imported input. |
| Keywords: | Dynamic General Equilibrium Model, Input-Output Matrix, Energy crisis, Gas Price Brake |
| JEL: | E32 E50 E62 H32 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:287760&r=ene |
| By: | Witness Simbanegavi; Andrea Leonard Palazzi |
| Abstract: | A review of the literature on second-round effects from food and energy (non-core) inflation shows that these effects are mainly transmitted via cost-push and demand-pull inflation channels. We deploy a gap model to investigate the presence of second-round effects in South Africa in the period 20032022. We find evidence that shocks to non-core inflation cause core inflation to revert to headline inflation, suggesting that these shocks transmit to core inflation. Core inflation reverts to headline inflation within one year, but the reversion is only partial, which could be interpreted as affirming the credibility of the South African Reserve Bank (SARB). Thus, following shocks to non-core inflation, policymakers should closely monitor conduits such as wage settlements and firms mark-ups for signs of spillovers and pass-through. Keeping inflation expectations well anchored should minimise these risks. |
| Date: | 2023–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:rbz:oboens:11045&r=ene |
| By: | Paula Patzelt (London School of Economics (LSE); Centre for Macroeconomics (CFM)); Ricardo Reis (London School of Economics (LSE); Centre for Macroeconomics (CFM)) |
| Abstract: | When the price of electricity increases by 1%, households’ average expected inflation increases by 1.0 to 1.3 basis points. But, if those expectations have become unanchored, as happened between the start of 2021 and 2023, then the effect is higher by 0.2 to 1.6 basis points. This paper arrives at these estimates by exploiting variation both in the time series, and especially in the cross section, from newly-available public data on expected inflation by Euro area households across region, gender, education, and income, and on the cost of energy across region and source. The impact of exogenous shocks to energy prices on expected inflation increases for 8 to 12 months, but they can only account for a small share of the rise in expected inflation in 2021-23. |
| Keywords: | Great Inflation, Monetary policy, Inattention |
| JEL: | D84 E31 Q43 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:cfm:wpaper:2411&r=ene |
| By: | Andrea Gazzani (Bank of Italy); Fabrizio Venditti (Bank of Italy); Giovanni Veronese (Bank of Italy) |
| Abstract: | Oil prices contain information on global shocks of key relevance for monetary policy decisions. We propose a novel approach to identify these shocks at the daily frequency in a Structural Vector Autoregression (SVAR). Our method is devised to be used in real time to interpret developments in the oil market and their implications for the macroeconomy, circumventing the problem of publication lags that plagues monthly data used in workhorse SVAR models. This method proves particularly valuable for monetary policymakers at times when macroeconomic conditions evolve rapidly, like during the COVID-19 pandemic or the invasion of Ukraine by Russia. |
| Keywords: | oil prices, VAR, real time, monetary policy |
| JEL: | Q43 C32 E32 C53 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1448_24&r=ene |
| By: | Jeworrek, Sabrina; Tonzer, Lena |
| Abstract: | Promoting green product consumption is one important element in building a sustainable society. Yet green products are usually more costly. In times of high inflation, not only budget constraints but also the fear that prices will continue to rise might dampen green product consumption and, hence, limit the effectiveness of exerted efforts to promote sustainable behaviors. To test this suggestion, we conducted a Germany-wide survey with almost 1, 200 respondents, followed by a framed field experiment (N=500) to confirm causality. In the survey, respondents' stated "green" purchasing behavior is, as to be expected, positively correlated with concerns about climate change. It is also negatively correlated with concerns about future inflation and energy costs, but after controlling for observable characteristics such as income and educational level only the correlation with concerns about future prices remains significant. This result is driven by individuals with below-median environmental attitude. In the framed field experiment, we use the priming method to manipulate the saliency of inflation concerns. Whereas sizably relaxing the budget constraint (i.e., by 50 percent) has no impact on the share of organic products in participants' baskets, the priming significantly decreases the share of organic products for individuals with below-median environmental attitude, similar to the survey data. |
| Keywords: | consumption behavior, inflation concerns, online shopping experiment, organic food, sustainability |
| JEL: | C93 D12 D84 D91 E31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:287754&r=ene |
| By: | François Cohen (UB Department of Economics, Energy Sustainability Chair & IEB); Victor Kahn (Mines Paris PSL); Guillaume Wald (Mines Paris PSL) |
| Abstract: | Vast amounts are being invested in the energy transition worldwide, with optimistic expectations of economic growth and green job creation. Yet, we crucially lack ex-post validations of the multiplier effects widely used to quantify new green jobs. Focusing on the French Energy Efficiency Obligations scheme, this paper provides the first ex-post estimate of the employment effect of a large energy-retrofit investment program. We exploit a discontinuity in the provision of subsidies and use a novel synthetic control method on disaggregated data to estimate regional-level employment effects. We estimate that the scheme created 1.4 jobs per million euros invested. |
| Keywords: | Energy Efficiency, Green Jobs, Employment, Energy Transition, Subsidies, Certificates |
| JEL: | J21 H23 Q43 Q48 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2024-01&r=ene |
| By: | Jean-Marc Fournier; Tannous Kass-Hanna; Liam Masterson; Anne-Charlotte Paret; Sneha D Thube |
| Abstract: | We quantify cross-border effects of the recent climate mitigation policies introduced in Canada and the U.S., using the global general equilibrium model IMF-ENV. Notably, with the substantial emission reductions from Canada’s carbon tax-led mitigation policies and the U.S.’ Inflation Reduction Act, these two countries would bridge two-thirds of the gap toward their Nationally Determined Contribution (NDC) goals. While the broadly divergent policies are believed to elicit competitiveness concerns, we find the aggregate cross-border effects within North America to be very limited and restricted to the energy intensive and trade exposed industries. Potential carbon leakages are also found to be negligible. A more meaningful difference triggered by policy heterogeneity is rather domestic, especially with U.S. subsidies increasing energy output while the Canada model with a carbon tax would marginally decrease it. This analysis is complemented by a stylized model illustrating how such divergence can affect the terms of trade, but also how these effects can be countered by exchange rate flexibility, border adjustments or domestic taxation. |
| Keywords: | Climate Policy; Climate Change Policy; Nationally Determined Contributions (NDCs); Mitigation; Climate subsidies; Carbon Tax; Carbon pricing; Spillovers; North America; Global; IMF-ENV model; Computable General Equilibrium (CGE) models; Competitiveness; Greenhouse Gas Emissions (GHG); Revenue Recycling; Inflation Reduction Act (IRA); Power; Electricity |
| Date: | 2024–03–22 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/068&r=ene |
| By: | Simplice A. Asongu (Oxford, UK); Sara le Roux (Oxford, UK) |
| Abstract: | The study investigates the role of governance (i.e., ‘voice & accountability’, political stability/no violence, regulatory quality, government effectiveness, corruption-control and the rule of law) in the incidence of short-term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002-2021. The generalized method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption-control for access to electricity and from government effectiveness, regulatory quality, corruption-control and rule of law, for telecommunication infrastructure. Policy implications are discussed. |
| Keywords: | Debt service, governance; information technology; access to electricity; Africa |
| JEL: | F34 H63 O10 O40 O55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:24/003&r=ene |
| By: | Samuel Pienknagura |
| Abstract: | Curbing carbon emissions to meet the targets set in the Paris Agreement requires the deployment of low carbon technologies (LCTs) at a global scale. This paper assesses the role of climate and trade policies in fostering LCT diffusion through trade. Leveraging a comprehensive database of climate policies and a new database identifying trade in low carbon technologies and the tariffs applied to these goods, this paper shows that the introduction of new climate policies has a positive and significant impact on LCT imports. Zooming into specific climate policies, the paper finds that, except for non-binding ones, all climate policies stimulate LCT imports. The paper also highlights the role of trade policies as an engine of LCT diffusion—reductions in tariffs applied on LCT goods have a sizeable impact on LCT imports. On the flip side, results suggest that more protectionist measures would impede the spread of low-carbon technologies. |
| Keywords: | Climate policies; trade; low carbon technologies; technological diffusion. |
| Date: | 2024–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/075&r=ene |
| By: | Fuchs, Larissa; Ngyuen, Huyen; Nguyen, Trang; Schaeck, Klaus |
| Abstract: | Does banking supervision affect borrowers' transition to the carbon-neutral economy? We use a unique identification strategy that combines the French bank climate pilot exercise with borrowers' carbon emissions to present two novel findings. First, climate stress tests actively facilitate borrowers' transition to a low-carbon economy through a lending channel. Stress-tested banks increase loan volumes but simultaneously charge higher interest rates for brown borrowers. Second, additional lending is associated with some improvements in environmental performance. While borrowers commit more to reduce carbon emissions and are more likely to evaluate environmental effects of their projects, they neither reduce direct carbon emissions, nor terminate relationships with environmentally unfriendly suppliers. Our findings establish a causal link between bank climate stress tests and borrowers' reductions in transition risk. |
| Keywords: | climate change, climate stress test, green finance, syndicated loans |
| JEL: | G21 G28 K11 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwhdps:287752&r=ene |
| By: | Cheikh T. Ndour (Cheikh Anta Diop University, Dakar, Senegal); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | Purpose – This study examines the relevance of information and communication technologies in the effect of gender economic inclusion on environmental sustainability. Design/methodology/approach – The focus is on a panel of 42 sub-Saharan African countries over the period 2005-2020. The empirical evidence is based on generalized method of moments. The environmental sustainability indicator used is CO2 emissions per capita. Two indicators of women's economic inclusion are considered: women's labour force participation and women's unemployment. The chosen ICT indicators are mobile phone penetration, internet penetration and fixed broadband subscriptions. Findings – The results show that: (i) fixed broadband subscriptions represent the most relevant ICT moderator of gender economic inclusion for an effect on CO2 emissions; (ii) negative net effects are apparent for the most part with fixed broadband subscriptions (iii) both positive ICT thresholds (i.e., critical levels for complementary policies) and negative ICT thresholds (i.e., minimum ICT levels for negative net effects) are provided; (iv) ICT synergy effects are apparent for female unemployment, but not for female employment. In general, the joint effect of ICTs or their synergies and economic inclusion should be a concern for policymakers in order to better ensure sustainable development. Moreover, the relevant ICT policy thresholds and mobile phone threshold for complementary policy are essential in promoting a green economy. Originality/value –The study complements the extant literature by assessing linkages between information technology, gender economic inclusion and environmental sustainability. |
| Keywords: | ICT, Gender inclusion; Environment sustainability; Sub-Saharan Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:24/001&r=ene |
| By: | Polemis, Michael |
| Abstract: | The longevity of cartels has been a highly contested topic among economists and managers, with numerous researchers arguing that cartels are inherently unstable and their endurance is usually short-lived. Understanding the main factors that influence a cartel duration is essential from a managerial point of view let alone the competition policy perspective. Despite having a large body of literature, there has been no systematic evaluation of the existing driving factors to determine the current understanding and identify potential paths for future research. The present paper employs quantile regression techniques thus allowing for a more thorough and precise depiction of the data in terms of estimations compared to the traditional OLS analysis. The empirical findings support that the number of cartelists imposes an asymmetric effect, reducing (increasing) the lifespan of the collusion only in the short (long) lived cartels. Operating internationally and having a third-party facilitator both lengthen cartels, but the magnitudes of these effects decline monotonically over the range of the distribution. Relative to price-fixing, bid-rigging lengthens cartels in the bottom 20% of the distribution but has no significant effect elsewhere. Finally, the prevalence of leniency programs appears to have no significant effect on cartel duration, except at the very bottom of the distribution where the effect is small in magnitude. |
| Keywords: | Collusion; Longevity; Cartelists; Sanctions; Quantiles |
| JEL: | C31 D43 L13 L41 |
| Date: | 2024–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120534&r=ene |
| By: | Moisson, Paul-Henri |
| Abstract: | The paper investigates socially responsible investment (SRI) when savers’ moral compass is direct consequentialism. It unveils the determinants of the (positive) green premium under laissez-faire and studies the ability of Pigouvian taxes to deliver the first-best outcome. It characterizes conditions under which, despite leakage, divestment increases social welfare. It describes when best-in-class strategies dominate exclusion. It further demonstrates that, whenever a polluting technology may be cleaned, shareholder activism in the polluting sector may be the morally right action. The paper then conducts the same analysis with two other moral criteria: "shared responsibility" and rule consequentialism, and compares their implications to the ones of direct consequentialism. |
| Keywords: | socially responsible investment; consequentialism; impact investing; green premium; Pigou tax; divestment, shareholder activism |
| JEL: | A13 D62 H23 Q59 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:124697&r=ene |
| By: | Reda Cherif; Fuad Hasanov; Madi Sarsenbayev |
| Abstract: | Oil-exporting economies face the risk of an acceleration in the energy transition. A risk-based approach calls for urgent preparation for the post-oil era by diversifying exports and transforming the prevailing growth model. We outline the principles of industrial policy to achieve this objective based on the experience of the Asian Miracles and propose a sketch of the strategy required to transform these principles into practice. The key component of the strategy is to select sectors along two dimensions—proximity to the current production structure or capabilities set and a timeframe for results to materialize. The three strategies—snail crawl, leapfrogging, and moonshots—determine how far from the current production structure the selected sectors are. These sectors need to show results both in the short run to jumpstart growth and ensure policy continuity—“quick wins”—and the long run to create a new growth model—“transformative gains.” We argue that the strategy should focus on supporting the exports of sophisticated sectors in both manufacturing and services while capitalizing on complex tasks and activities in existing industries but should leave non-sophisticated sectors such as tourism and non-tradable services to the private sector. |
| Keywords: | Diversification; Industrial Policy; Energy Transition; Oil Exporters |
| Date: | 2024–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/074&r=ene |
| By: | Andersson, Fredrik N G (Department of Economics, Lund University); Arvidsson, Susanne (Department of Business Administration, Lund University) |
| Abstract: | This study examines the integration of climate change and biodiversity into business strategies and governance structures of listed firms on the Swedish stock exchange NasdaqOMX Large Cap. The results show clear disparities in the level of integration and the factors driving the integration process. All, but a few small firms, have integrated climate change into business strategies, and are ahead in the process of integrating it into governance structures. Biodiversity integration is lagging behind the integration of climate change. We also find that the integration process depends on the sustainability competences within the board unlike climate change when the board composition is less important. Additionally, our results show that firms require external pressures from, e.g., regulations to integrate biodiversity and climate change into business strategies and governance structures. |
| Keywords: | biodiversity; climate change; sustainable finance; business strategy; governance structures; CSRD |
| JEL: | Q20 Q28 Q30 Q57 |
| Date: | 2024–04–04 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:lunewp:2024_002&r=ene |
| By: | Sabine Bacouël-Jentjens (ISC Paris Business School); Grégory Levieuge (Banque de France); José Riascos (University of Orléans); Camelia Turcu (University of Orléans) |
| Abstract: | This paper investigates the impact of mining on sustainable development in Mexico. Specifically, it examines whether mining affects different dimensions of sustainable development, including consumption patterns, inequalities, education, and environmental quality. Using household data on 2, 403 municipalities over a period of 30 years considering four waves of census data (1990, 2000, 2010, 2020), we find that the mining sector has mixed effects on sustainable development. It has a limited positive effect on the income of neighboring households but it also generates negative environmental spillovers. We do not find significant effects on inequalities or education. Overall, our study provides a more nuanced understanding of the impact of mining on various aspects of sustainable development, contributing to ongoing debates on the relationship between natural resource extraction and sustainable development in emerging economies. |
| Keywords: | Sustainable development, environment, extractive industry, Mexico |
| JEL: | Q |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2023.17&r=ene |
| By: | West Togbetse (Université d’Orléans); Camelia Turcu |
| Abstract: | In this study, we assess the effect of natural resources on FDI flows to Africa within the energy transition context. To do this, and given China’s growing presence in Africa, we focus only on China as a main investor in Africa. We analyze its outward FDI flows, at micro and macro level to 30 African countries over a 19-year period (2000 to 2018). Our results show that not all natural resources are attractive factors for FDI. Mineral resources and natural gas were found to be key determinants of Chinese FDI while oil resources have a negative impact on Chinese FDI flows to Africa. These results might suggest an engagement in the energy transition process which requires specific mineral resources. |
| Keywords: | FDI , natural resources, energy transition |
| JEL: | F |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2023.15&r=ene |
| By: | Juan Armando Torres Munguía (Georg-August-Universität Göttingen); Marlies Hesselman (University of Groningen); Inmaculada Martínez-Zarzoso (Georg-August-Universität Göttingen); Ilse Ruyssen (Ghent University) |
| Abstract: | This paper compiles and presents a global panel dataset of energy poverty policy actions spanning the period March 2020 and March 2021. It builds on the COVID-19 Energy Map that collects policies to ensure the affordability of energy supplies for households during the COVID-19 pandemic. The monthly-frequency dataset is organized in a user-friendly way, allowing not only experts and researchers, but also the broader non-expert public, to examine and analyse the month-by-month policy changes across countries. The panel dataset is widely applicable for future research, especially as other global or regional datasets pertaining to the early years of the pandemic become available. |
| Keywords: | Energy poverty; COVID-19 |
| JEL: | Q |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2024.04&r=ene |
| By: | Theo Janse van Rensburg; Kgotso Morema |
| Abstract: | This economic note investigates the slowdown in South African growth since the global financial crisis. It finds that domestic growth (both actual and potential) has been on a declining trend largely due to structural constraints, which over the last two years have been exacerbated by load-shedding. SARB models estimate the impact of load-shedding at between -0.7 and -3.2 percentage points, while other institutions' estimated impacts range between -0.4 and -4.2 percentage points. In our view, load-shedding will likely continue for longer as Eskom embarks on major repairs, new capital investment and maintenance projects. To prevent further growth slippage, it is crucial that there is efficient implementation of energy reforms as well as private sector participation and investment. |
| Date: | 2023–06–29 |
| URL: | http://d.repec.org/n?u=RePEc:rbz:oboens:11048&r=ene |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The main message is that Vietnam aspires to become a global role model in sustainable development, particularly in building a green economy, ensuring social equity during the energy transition, and leading climate action on the international stage. Vietnam has potential to inspire other nations and suggests concrete actions to attract investment, develop human resources, and collaborate with international partners, especially France and Europe, in the field of renewable energy. The vision for Vietnam is to harness its strategic advantages, such as its location, vibrant economy, and commitment to green growth, to showcase how a country can achieve rapid economic development while transitioning to a low-carbon future. The interview discusses key strategies, policies, and initiatives that Vietnam should prioritize, with a focus on green finance, innovation, just energy transition, international cooperation, and capacity building in the energy sector. |
| Date: | 2024–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04519631&r=ene |
| By: | Matteo Foglia (Department of Economics and Finance, University of Bari ``Aldo Moro", Italy); Vasilios Plakandaras (Department of Economics, Democritus University of Thrace, Komotini, Greece); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Qiang Ji (Institutes of Science and Development, Chinese Academy of Sciences, Beijing, China; School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing, China) |
| Abstract: | In this paper, we examine the potential spillovers between returns, volatility, skewness and kurtosis of developed stock markets under the lenses of rare disaster events, proxied by climate risks. The goal of this study is to depict the transmission mechanism of rare disaster events involving moments within and between advanced equity markets. In doing so, we provide estimates of the aforementioned moments based on model-implied distributions of stock returns, derived from the quantile autoregressive distributed lag mixed-frequency data sampling (QADL-MIDAS) method, using a long span of data. Our research framework includes the G7 and Switzerland over the period December 1924 to February 2023, where we apply a multilayer approach to spillovers, adding the effect of climate risk to our analysis. Our empirical findings are as follows: firstly, spillovers are significant within- and across stock markets for each of the four moments. Secondly, based on a nonparametric causality-in-quantiles approach, changes in temperature anomalies, have the predictive power to shape the entire conditional distribution of various metrics of spillover involving single- and multiple-layers of returns and risks layers. In sum, we show that the multi-layer approach offers a comprehensive and nuanced view of how stock market-related information is transmitted across the stock markets of advanced economies, carrying implications for investors and policymakers. |
| Keywords: | Returns and risk spillovers, advanced equity markets, multi-layer spillover approach, nonparametric causality-in-quantiles method, climate risks, predictability |
| JEL: | C22 C32 C53 G15 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202415&r=ene |
| By: | Moisés Obaco (Universidad Católica del Norte & FACEA & Departamento de Economía, Antofagasta, Chile); Daniel Davi-Arderius (Copenhagen School of Energy Infrastructure (CSEI), Copenhagen Business School, Denmark & University of Barcelona and Chair of Energy Sustainability & Barcelona Institute of Economics (IEB)); Nicola Pontarollo (Department of Economics and Management, University of Brescia) |
| Abstract: | Developing countries are making great efforts to electrify residences to reduce dependence on fossil fuels and deal with climate change. In 2014, Ecuador launched a clean-cooking program known as the Programa de Cocción Eficiente (PCE) aimed at replacing liquefied petroleum gas (LPG)-fired cookstoves and LPG-fired boilers with electric devices. Using an original dataset of monthly information (2015-2021) at the parish level, we study several important determinants of participation in this program that have not yet been addressed. We first model spatial spillovers and then investigate the impact of regional power quality and the effect of other subsidized programs related to electricity consumption. Our results show spillover effects for PCE participation with regard to cooking but not for the overall PCE participation rate. Higher participation is associated to better supply quality and with the use of other power subsidies. Policy recommendations include the need to perform detailed spatial analyof the determinants of participation in these programs, instead of using surveys, and designing programs using a placed-based approach, in addition to evaluating cross-sectional effects between subsidies in advance in order to avoid unforeseen trade-offs and considering the regulatory framework for utilities to provide effective incentives to improve supply quality. |
| Keywords: | Clean-cooking programs, Energy poverty, Spatial spillover effects, Power quality, Electrical reliability, Latin America, Developing countries, Ecuador |
| JEL: | Q01 Q43 Q52 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:wpaper:doc2023-07&r=ene |
| By: | Olimpia Cutinelli Rendina (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, PJSE - Paris Jourdan Sciences Economiques - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance - CdF (institution) - Collège de France); Sonja Dobkowitz (Universität Bonn = University of Bonn); Antoine Mayerowitz (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, Collège de France - Chaire Economie des institutions, de l'innovation et de la croissance - CdF (institution) - Collège de France) |
| Abstract: | How do firms respond to rising environmental concerns of consumers? We investigate this question for the automotive industry in the US using a shift-share instrumental variable approach. We construct a novel dataset at the firm-level to instrument changes in household preferences with natural disasters. Our findings suggest that firms not only engage in cleaner innovation but also increase their lobbying on environmental topics. We show that the increase in environmental lobbying and clean patenting follow the same dynamics which points to a complementarity between the two strategies. These results can be understood as firms using lobbying to increase the value of clean patents: higher environmental standards tailored to the firm's new clean technologies diminish the competition the firm faces. |
| Date: | 2024–03–13 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04502992&r=ene |
| By: | Patozi, A. |
| Abstract: | In this paper, I investigate how the Net-Zero transition affects the transmission of monetary policy. I first document an upward trend in environmental performance among US publicly listed companies over the last decade. Second, I evaluate the implications of firms becoming ‘greener’ for the transmission of monetary policy on asset prices, credit risk and firm-level investment. In response to a shock to monetary policy, ‘green’ firms (with high environmental scores) are significantly less impacted than their ‘brown’ counterparts (with lower environmental scores). The dependence of monetary policy responses on firm-level greenness is not explained by intrinsic differences in firms’ characteristics. Instead, I show that the heterogeneous response is the result of investors’ preferences for sustainable investing. Using a stylized theoretical framework, I illustrate how incorporating such preferences attenuates the semi-elasticity of ‘green’ asset prices with respect to monetary policy shocks. |
| Keywords: | Climate Change, ESG, Heterogeneity, Monetary Policy, Sustainable Investing |
| JEL: | E52 G12 G14 G30 |
| Date: | 2023–01–18 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camjip:2302&r=ene |
| By: | BECKER Annette (European Commission - JRC); FATICA Serena (European Commission - JRC); LONDON Melina (European Commission - JRC); PANZICA Roberto (European Commission - JRC); PAPADOPOULOS Georgios (European Commission - JRC) |
| Abstract: | This report conducts a first stocktake of finance for green investment in Europe. It puts forward some conceptual lines to build a monitoring framework for green finance. It also proposes a dashboard of indicators to measure real economy outcomes and financial outcomes, and provides a first implementation by calculating prioritised indicators based on relevance and data availability. The report identifies data gaps with regard to climate adaptation as well as the non-climate objectives listed in the EU taxonomy regulation, while it highlights the complexity of the operationalisation of high-level definitions to implement the monitoring. Primarily data driven in its implementation, this monitoring exercise is set to evolve and improve as new data become available. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136925&r=ene |
| By: | Nosratzadeh, Hossein; Bhowmick, Debjit; Carmona, Ana Belén Ríos; Thompson, Jason; Thai, Thao; Pearson, Lauren; Beck, Ben |
| Abstract: | E-bikes are recognized as a sustainable mode of transportation with an unmet potential for widespread adoption. However, despite a decade of global implementation, research gaps persist regarding the design and characteristics of incentive programs for e-bikes. This review examines different design elements of implemented financial incentive programs for e-bike uptake in OECD countries. The findings reveal three main components common to these schemes: (1) target cohort, with the majority of programs focusing on the local population; (2) eligible e-bike types, with regular e-bikes being the most frequently chosen; and (3) financial incentive structures aimed at maximizing uptake among the target cohort, with post-purchase rebates being the most prevalent. Another significant aspect identified is the allocation process, predominantly following a "first come, first served" structure. However, prioritizing project goals and promoting equity is recommended for optimal program design. The array of structures and designs in these schemes highlights challenges in determining optimal designs, constrained by limited evidence informing transport policies. This review synthesizes global insights on designing financial incentive schemes to boost e-bike uptake, providing a comprehensive guide for policy making and program administrators in designing executive programs. |
| Date: | 2024–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:5xgch&r=ene |
| By: | Fabian Scheifele; David Popp |
| Abstract: | Support from local citizens is important for the scale-up of renewable energy. We investigate the impact of utility-scale wind and solar parks on employment, GDP and public finances in Brazilian municipalities using a difference-in-differences design with matching. We find a positive employment impact of 1-1.5 jobs/MW in the 15 months preceding the commissioning of a solar park, when the park is under construction, but no impacts thereafter. For wind, we find no employment impacts during the construction phase and potentially a small impact of 0.2-0.25 jobs/MW in the 12 months following commissioning. In the year after commissioning, GDP increases 23% for an average sized solar park and 12% for an average sized wind project. The impacts only decrease slightly in the following years. We also find significant persistent fiscal revenue impacts in wind compared to only a one-time tax revenue increase in solar at the time of construction. Our results provide different implications for policymakers that want to advocate for renewable energy in their towns. While for solar, the main benefit constitutes a short-term increase in low-skilled employment and public revenues, wind energy provides more long-term financial benefits but less local employment opportunities. |
| JEL: | E24 H71 J21 O13 O14 Q52 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32274&r=ene |
| By: | Alejandro Esteller-Moré (Institut d’Economia de Barcelona (IEB) / Universitat de Barcelona); Matilde Muñoz (UC Berkeley); John D. Wilson (Michigan State University); Isabel Z. Martínez (KOF Swiss Economic Institute) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:report:ieb_report_2_2023&r=ene |
| By: | Mikhail Andreyev (Bank of Russia, Russian Federation); Alyona Nelyubina (Bank of Russia, Russian Federation) |
| Abstract: | We use a DSGE model for a hydrocarbon-rich country to examine the macroeconomic implications of scenarios that lead to an energy transition. Our findings show that the scenario of the fall in export revenues from brown energy sales is the least preferred for energy transition in terms of welfare loss, while the scenario of imposing higher taxes is more acceptable. The most favourable scenario leading to the smallest drop in public wealth and long-term growth in output and consumption involves the productivity incentives in the green energy sector. We also analyse the impact of mechanisms such as monetary policy inertia, the level of openness of the financial account, technological substitutability between brown and green energy. We found that news about the future implementation of green policies alone cannot trigger the energy transition. Investments become cleaner after the news announcement, but this barely increases green energy production. |
| Keywords: | : dynamic models, general equilibrium, rational expectations, green energy, energy transition, climate policy, cross-border tax, monetary policy. |
| JEL: | D58 E47 E62 E63 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:bkr:wpaper:wps122&r=ene |
| By: | Kwon, Ohyun (Drexel University School of Economics); Zhao, Hao (School of Environmental and Natural Resources, and Institute of Ecological Civilization, Renmin University of China); Zhao, Min Qiang (MOE Key Laboratory of Econometrics, the Wang Yanan Institute for Studies in Economics, Xiamen University) |
| Abstract: | We propose a novel method for calculating product-level emission intensities (PLEI) at highly disaggregate level (Harmonized System 6-digit) for nine emission categories. This method effectively disentangles PLEI from the firm-level efficiency factor that varies across firms and years. Utilizing firm-level emissions data from China for the period 2000–2013, our analysis shows that: (i) there is substantial heterogeneity in PLEI across different products; (ii) the 10% most emission-intensive products contribute to nearly 75% of total emissions, while comprising only 4% of total exports; (iii) a less aggregate categorization of products markedly underestimates the variation in emission intensities; and (iv) China’s export profile shows no tendency towards specialization in products with high emission intensity. |
| Keywords: | International trade; Emission intensities; China |
| JEL: | D22 F18 Q56 |
| Date: | 2024–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:ris:drxlwp:2024_004&r=ene |
| By: | MARQUES SANTOS Anabela (European Commission - JRC); BARBERO Javier; SALOTTI Simone (European Commission - JRC) |
| Abstract: | The transition to a competitive and sustainable economy is at the heart of EU strategies to achieve climate neutrality while increasing economic efficiency. An indicator to measure the competitive and sustainable transition at regional level is presented based on Santos et al. (2023). The indicator accounts for shifts in employment towards greener and more productive sectors over the 2008-2020 period. On average, the share of employment in more productive and greener sectors is increasing over time, although the impact of the Covid-19 crisis is tangible. There is strong heterogeneity across EU regions, but most of the less developed regions lag behind the more developed ones. However, on the dimension measuring competitiveness, the less developed regions perform better than the more developed ones. The opposite is true for the environmental sustainability dimension. This suggests that regions initially improve along the competitiveness dimension, and only afterwards are capable of concentrating on environmental sustainability. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136629&r=ene |
| By: | Giraldo, Carlos (Latin American Reserve Fund); Giraldo, Iader (Latin American Reserve Fund); Turner, Philip (University of Basel) |
| Abstract: | Understanding the intricate relationship between oil price volatility and economic growth is essential for policymakers and investors seeking to develop effective policies to promote sustainable development and reduce vulnerabilities in the Latin American region. Our aim of this research paper was to analyze this relationship by accounting for the unique characteristics of the region, including both oil-producing countries and net oil importers, and comparing it with other regions worldwide. Our results revealed that the surge in oil prices following the pandemic has directly impacted the economic growth of Latin America. However, the economic growth of advanced economies has a more significant influence on Latin America's growth compared to that of other regions. Furthermore, we examined the potential implications of oil price volatility for inflation levels within countries, and we analyze the relationship between oil prices and the profitability of oil-producing firms based on microeconomic data, which elucidates the overall impact of oil price volatility on the region's economic growth. |
| Keywords: | Economic Growth; Commodities Market; Oil Prices; Latin America; |
| JEL: | F43 N16 Q02 Q11 |
| Date: | 2024–04–11 |
| URL: | http://d.repec.org/n?u=RePEc:col:000566:021125&r=ene |
| By: | Balietti, Anca; Zeising, Tom |
| Abstract: | This paper investigates the role of the U.S. Environmental Protection Agency in advancing environmental justice through monitoring and enforcement efforts mandated by the Clean Air Act. Our analysis relies on a comprehensive dataset encompassing auditing information from all environmentally relevant plants between 2000 and 2018. Leveraging county-level variation in racial composition and environmental auditing, we find a substantial and persistent reduction in the proportion of inspected plants following increases in the share of non-White population. This decline coincides with a decrease in political activism, particularly among entities typically advocating for more stringent environmental protection. |
| Keywords: | Environmental auditing; racial demographic shifts; Environmental justice; Political activism |
| Date: | 2024–03–07 |
| URL: | http://d.repec.org/n?u=RePEc:awi:wpaper:0745&r=ene |
| By: | Charmi Mehta (xKDR Forum); Radhika Pandey (National Institute of Public Finance and Policy); Renuka Sane (TrustBridge Rule of Law Foundation); Ajay Shah (xKDR Forum) |
| Abstract: | Indian electricity utilities face significant financial stress on account of unfunded subsidies. This paper places the problem of electricity subsidies in the context of a debt sustainability analysis (DSA) for Tamil Nadu. We find the state fails on five out of six indicators for debt sustainability. We integrate the electricity sector into the conventional DSA, giving a "corrected DSA". These modifications are material in changing our sense of the fiscal situation in the state. There are concerns about the extent to which the current fiscal path is sustainable. Fiscal stress harms investibility in electricity. Resolving the problems of electricity policy is a critical component of the development of the medium-term fiscal strategy for the state government. |
| JEL: | H2 H3 H7 Q4 Q5 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bjd:wpaper:2&r=ene |
| By: | Gupta, Anandita (National Institute of Public Finance and Policy); Pandey, Radhika (National Institute of Public Finance and Policy); Sapatnekar, Sanhita (Department of Economics, University of Navarra, Spain) |
| Abstract: | In May 2023, the European Union (EU) implemented the Carbon Border Adjustment Mechanism (CBAM) to prevent carbon leakage risks associated with its ambitious climate policies. Examining CBAM in conjunction with the EU Emissions Trading System (EU ETS), the paper highlights potential CBAM implications and discusses proposals to address key issues. CBAM is likely to impact exporters’ profitability and trade competitiveness, favouring nations with faster decarbonisation ability and robust carbon pricing systems. The paper advocates for non-EU countries to strengthen their emissions monitoring, reporting, and verification (MRV) systems and carbon pricing frameworks. For India, changing the nomenclature of the coal component under the GST Compensation Cess to a ‘carbon tax’ could be considered to reduce industries’ potential carbon liabilities. The development of India’s national emissions trading system could consider CBAM-related impacts, international standards, and insights from other jurisdictions, to strengthen its carbon market and achieve its climate commitments. Lastly, the paper highlights the need for a task force under the leadership of the Prime Minister for continuous engagement on evolving carbon market issues and the dynamic global trade landscape. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:npf:wpaper:24/408&r=ene |
| By: | Bakari, Sayef |
| Abstract: | In the context of this study, we aim to assess the impact of domestic investments and carbon dioxide emissions on economic growth in 48 Sub-Saharan African countries over the period 1990-2022. By employing an estimation methodology based on static gravity models (fixed and random effects) as well as the Panel GMM model (fixed and random effects), our results significantly and positively indicate that domestic investments and CO2 emissions influence economic growth. We recommend that policymakers and stakeholders in Sub-Saharan African countries take these findings into consideration when formulating economic policies. The positive and significant implications of domestic investments and CO2 emissions on economic growth underscore the importance of promoting policies that encourage appropriate levels of domestic investment and sustainable management of CO2 emissions. |
| Keywords: | CO2 Emissions, Domestic Investment, Economic Growth, Sub-Saharan African Countries. |
| JEL: | E22 O47 O55 Q56 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120370&r=ene |
| By: | Schenuit, Felix; Geden, Oliver |
| Abstract: | Als letzte große klimapolitische Initiative vor den Europawahlen hat die scheidende Europäische Kommission ihre Mitteilung für ein 2040-Ziel veröffentlicht. Mit ihrer Empfehlung eines 90%-Netto-Reduktionsziels im Vergleich zu 1990 schlägt sie erste strategische Pflöcke für die nächste Legislaturperiode ein. Dabei unterstreicht sie die zunehmende Bedeutung industriepolitischer Flankierung der Klimapolitik, besonders von Carbon-Management-Technologien. Zwar beginnt die Ausgestaltung der klimapolitischen Architektur für die Jahre 2031 bis 2040 erst nach den Europawahlen. Doch die Mitteilung zum 2040-Ziel gibt einen Vorgeschmack auf die politischen Herausforderungen, denen sich auch die Bundesregierung stellen muss. |
| Keywords: | Europäische Kommission, europäische Klimapolitik, 2040-Ziel, Europäischer Rat, Carbon Management, CCS, BECCS, DACCS, CCU, CDR |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:swpakt:289464&r=ene |
| By: | Paine, Joshua; Sheargold, Elizabeth |
| Abstract: | Commitments to facilitate climate friendly FDI increasingly feature in investment facilitation agreements, in broader trade agreements and in non-binding green economy agreements. This Perspective argues that commitments for ongoing cooperation, which identify shared priorities and establish mechanisms for implementation, are a concrete way for treaties to facilitate climate friendly FDI. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:colfdi:289491&r=ene |
| By: | Assche, Hanne Lamberts-Van; Lavrutich, Maria (Tilburg University, School of Economics and Management); Compernolle, Tine (Tilburg University, School of Economics and Management); Thomassen, Gwenny; Thijssen, Jacco J. J. (Tilburg University, School of Economics and Management); Kort, Peter M. (Tilburg University, School of Economics and Management) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:d0025c98-b331-4b0f-813b-1abb74d482cd&r=ene |
| By: | Oleksandr Galychyn (PARTHENOPE - Università degli Studi di Napoli “Parthenope” = University of Naples); B.D. Fath (Towson University [Towson, MD, United States] - University of Maryland System); D. Wiedenhofer (BOKU - Universität für Bodenkultur Wien = University of Natural Resources and Life [Vienne, Autriche]); E. Buonocore (PARTHENOPE - Università degli Studi di Napoli “Parthenope” = University of Naples); P.P. Franzese (PARTHENOPE - Università degli Studi di Napoli “Parthenope” = University of Naples) |
| Abstract: | Urban activities currently consume 75% of global final energy demand, which is expected to increase given absolute and relative population growth in cities. Assessments of both producer (upstream) and consumer(downstream) ecological and socioeconomic impacts of urban inter-industry exchanges are needed to reduce energy consumption and resource use behind the industrial footprints of cities. Environmental extensions in the input-output analysis are designed from the user side perspective, focusing only on commercial energy su Delete French Add Keywords You can add keywords in multiple languages : choose the desired language and click on + to add new keywords. The characters ", " and ";" can be used to separate keywords in a list. English Delete English Add Fulltext language Licence Journal Cleaner Production Letters (ISSN : 2666-7916) Journal not referenced in Sherpa-Romeo Publication date Accepted formats are YYYY-MM-DD or YYYY-MM or YYYY In press If you choose the option "In Press", the publication date will no longer be required Volume Number page number Identifiers Identifiers Add the identifiers of this work in other data bases such as DOI, arXiv, PubMed, ADS DOI Delete ArXiv Add Related data Add the DOI identifiers to link your submissions to research data. Delete Add Funding ANR project(s) Add the code décision (ANR-19-ASMA-0007), the acronym or the title of the project. You can add more than one ANR project European project(s) Add one or multiple European projects this work is related to Contract, financing Economical sources of this work Add Other Informations Production date Accepted formats are YYYY-MM-DD or YYYY-MM or YYYY Science popularization Peer-reviewed Audience Electronic publication date Accepted formats are YYYY-MM-DD or YYYY-MM or YYYY Volume title Add the collection title or the volume title Conference/Publisher URL Classification PACS, MSC, etc. ACM Classification 2012 Enter keywords from ACM 2012 classification ACM Classification 1998 Enter keywords from ACM 1998 classification Mesh thesaurus Fill in information from the MeSH (Medical Subject Headings) Add JEL thesaurus Fill in information from the JEL keyword thesaurus Comment Internal note Add Project/Collaboration Add See also URL to related ressources Add Research infrastructure From the National Roadmap for Research Infrastructures Validation, Check your informations and agree to terms I check the information in the citation Journal articles Oleksandr Galychyn, B.D. Fath, D. Wiedenhofer, E. Buonocore, P.P. Franzese. An urban emergy footprint: Comparing supply- and use-extended input-output models for the case of Vienna, Austria. Cleaner Production Letters, 2024, 6, pp.100058. ⟨10.1016/j.clpl.2024.100058⟩ I transfer my submission arxiv To transfer your document on arXiv, your submission needs to comply with the following conditions: The document must have an abstract in english One of the chosen domain must be a sub-domain of arXiv Every file must weight |
| Keywords: | Emergy accounting Emergy-evaluated carbon footprint Carbon footprint Environmental |
| Date: | 2024–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04507173&r=ene |
| By: | Mr. Daniel Garcia-Macia; Mr. Waikei R Lam; Anh D. M. Nguyen |
| Abstract: | Managing the climate transition presents policymakers with a tradeoff between achieving climate goals, fiscal sustainability, and political feasibility, which calls for a fiscal balancing act with the right mix of policies. This paper develops a tractable dynamic general equilibrium model to quantify the fiscal impacts of various climate policy packages aimed at reaching net zero emissions by mid-century. Our simulations show that relying primarily on spending measures to deliver on climate ambitions will be costly, possibly raising debt by 45-50 percent of GDP by 2050. However, a balanced mix of carbon-pricing and spending-based policies can deliver on net zero with a much smaller fiscal cost, limiting the increase in public debt to 10-15 percent of GDP by 2050. Carbon pricing is central not only as an effective tool for emissions reduction but also as a revenue source. Delaying carbon pricing action could increase costs, especially if less effective measures are scaled up to meet climate targets. Technology spillovers can reduce the costs but bottlenecks in green investment could unwind the gains and slow the transition. |
| Keywords: | Climate change; mitigation; public debt; carbon pricing; subsidies; public investment; industrial policies; dynamic general equilibrium. |
| Date: | 2024–03–29 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/071&r=ene |
| By: | West Togbetse (Université d’Orléans); Camelia Turcu |
| Abstract: | In the context of climate change, countries need natural resources for their development and energy transition process. A large share of these resources is based in emerging and developing countries. Within this framework, we investigate whether natural resources endowment has become a key determinant in the allocation of development aid. We put a specific focus on China, which has started to have a proactive role in international aid to other countries, although it is still an emerging economy. In particular, we analyze whether China is increasingly granting aid to countries well endowed with natural resources and if this official development assistance is motivated by economic interests, mainly those related to natural resources. To do so, we use two sets of data: an original database at the country level, covering the period 2000-2016, and geocoded data on 1650 Chinese development projects across 2969 physical locations in Africa over the period 1999-2013. We built thus our analysis at a macro and microeconomic level. Our results show that the aid granted by China can be linked to access to natural resources. |
| Keywords: | Foreign aid, natural resources, energy transition |
| JEL: | F Q |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:inf:wpaper:2023.16&r=ene |
| By: | Alessandro Moro (Bank of Italy); Valerio Nispi Landi (Bank of Italy) |
| Abstract: | We examine the global implications of carbon taxation using a two-country environmental DSGE model, with a specific focus on the strategic interactions between countries, the case for cooperation, and the impact on the balance of payments. From a normative perspective, we show that, assuming a convex disutility of pollution, carbon taxes are strategic substitutes across countries: when one country increases carbon taxation, the other country finds it optimal to reduce it. From a positive perspective, a country imposing unilateral carbon taxation experiences a reduction in its production, a decrease in its interest rates, a depreciation of its currency on impact and an appreciation thereafter, higher debt, and equity outflows to the rest of the world. |
| Keywords: | carbon tax, climate change, capital flows, international policy transmission, DSGE |
| JEL: | F31 F32 F41 F42 Q58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bdi:wptemi:td_1445_24&r=ene |
| By: | María Teresa Costa-Campí (Institut d’Economia de Barcelona (IEB) / Universitat de Barcelona / Cátedra de Sostenibilidad Energética (IEB-UB)); Elisa Trujillo-Baute (Universitat de Lleida / Cátedra de Sostenibilidad Energética (IEB-UB)); Andrew Burlinson (University of Sheffield / UK Energy Research Centre); Monica Giulietti (Nottingham University / UK Energy Research Centre); Daire McCoy (Grantham Research Institute / London School of Economics / OFGEM) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ieb:report:ieb_report_3_2023&r=ene |
| By: | TRIPPL Michaela; SOETE Luc; KIVIMAA Paula; SCHWAAG SERGER Sylvia; KOUNDOURI Phoebe; PONTIKAKIS Dimitrios (European Commission - JRC) |
| Abstract: | We explore the regional implications of the policy concepts of open strategic autonomy and technology sovereignty, examining how those policies may impact and interact with industrial development and the socio-economic and -ecological transformation of regions. We highlight that the effects of policies on promoting strategic autonomy and technology sovereignty can vary significantly across regions. We demonstrate that the effectiveness of such policies can depend with regional development and cohesion strategies under certain circumstances. To exemplify these arguments, we analyse several cases, including the territorial aspects of military security, energy transitions, microchip production, and critical raw materials. Achieving OSA related goals without compromising environmental and social sustainability requires a fundamental rethink of supply chains, material sourcing and use, radically different energy systems, and a new industrial policy centred on renewable energy sources and sustainable material use. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136428&r=ene |
| By: | Tubagus Aryandi Gunawan; Lilianna Gittoes; Cecelia Isaac; Chris Greig; Eric Larson |
| Abstract: | We present design methods and insights for CO2 capture, transport, and storage systems for clusters of industrial facilities, with a case-study focus on the state of Louisiana. Our analytical framework includes: (1) evaluating the scale and concentration of capturable CO2 emissions at individual facilities for the purpose of estimating the cost of CO2 capture retrofits, (2) a screening method to identify potential CO2 storage sites and estimate their storage capacities, injectivities, and costs; and (3) an approach for cost-minimized design of pipeline infrastructure connecting CO2 capture plants with storage sites that considers land use patterns, existing rights-of-way, demographics, and a variety of social and environmental justice factors. In applying our framework to Louisiana, we estimate up to 50 million tCO2/y of industrial emissions (out of today's total emissions of 130 MtCO2/y) can be captured at under 100 USD/tCO2, and up to 100 MtCO2/y at under 120 USD/tCO2. We identified 98 potential storage sites with estimated aggregate total injectivity between 330 and 730 MtCO2/yr and storage costs ranging from 8 to 17 USD/tCO2. We find dramatic reductions in the aggregate pipeline length and CO2 transport cost per tonne when groups of capture plants share pipeline infrastructure rather than build dedicated single-user pipelines. Smaller facilities (emitting less than 1 MtCO2/y), which account for a quarter of Louisiana's industrial emissions, see the largest transport cost benefits from sharing of infrastructure. Pipeline routes designed to avoid disadvantaged communities (social and environmental justice) so as not to reinforce historical practices of disenfranchisement involve only modestly higher pipeline lengths and costs. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.17162&r=ene |