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on Energy Economics |
| By: | Franziska Funke; Linus Mattauch; Thomas Douenne; Adrien Fabre; Joseph E. Stiglitz |
| Abstract: | To accept carbon pricing, citizens desire viable alternatives to fossil-fuel based options. As inflation and higher interest rates have exacerbated access barriers for capital-intensive green substitutes, the political success of carbon pricing will be measured by how well policy design enables consumers to switch. |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:bdp:dpaper:0038&r=ene |
| By: | Christopher J. Erceg; Marcin Kolasa; Jesper Lindé; Mr. Andrea Pescatori |
| Abstract: | Many countries have used energy subsidies to cushion the effects of high energy prices on households and firms. After documenting the transmission of oil supply shocks empirically in the United States and the Euro Area, we use a New Keynesian modeling framework to study the conditions under which these policies can curb inflation. We first consider a closed economy model to show that a consumer subsidy may be counterproductive, especially as an inflation-fighting tool, when applied globally or in a segmented market, at least under empirically plausible conditions about wage-setting. We find more scope for energy subsidies to reduce core inflation and stimulate demand if introduced by a small group of countries which collectively do not have much influence on global energy prices. However, the conditions under which consumer energy subsidies reduce inflation are still quite restrictive, and this type of policy may well be counterproductive if the resulting increase in external debt is high enough to trigger sizeable exchange rate depreciation. Such effects are more likely in emerging markets with shallow foreign exchange markets. If the primary goal of using fiscal measures in response to spikes in energy prices is to shield vulnerable households, then targeted transfers are much more efficient as they achieve their goals at lower fiscal cost and transmit less to core inflation. |
| Keywords: | Energy Prices; Energy Subsidies; Monetary Policy; International Spillovers |
| Date: | 2024–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/081&r=ene |
| By: | Bickenbach, Frank; Dohse, Dirk; Langhammer, Rolf J.; Liu, Wan-hsin |
| Abstract: | China makes extensive use of subsidies in order to take a leading role on the global markets in the green technology sectors of electric vehicles, wind turbines and railway rolling stock. According to DiPippo et al. (2022) and recent OECD studies, the industrial subsidies in China are at least three to four times or even up to nine times higher than in the major EU and OECD countries. According to a very conservative estimate, industrial subsidies in China amounted to around EUR 221 billion or 1.73% of Chinese GDP in 2019. According to recent data of 2022, direct government subsidies for some of the dominant Chinese manufacturers of green technology products had also increased significantly - the electric car manufacturer BYD alone received EUR 2.1 billion. The authors point out that Chinese companies are benefiting from further support measures, including subsidized inputs, preferential access to critical raw materials, forced technology transfers, the strategic use of public procurement and the preferential treatment of domestic firms in administrative procedures. The authors recommend the EU to use its anti-subsidy proceeding against BEV imports from China to enter into negotiations with the Chinese government and persuade it to abolish public support measures that are particularly harmful to the EU. |
| Abstract: | China setzt in großem Umfang Subventionen ein, um auch bei den grünen Technologiebranchen Elektrofahrzeuge, Windturbinen und Schienenfahrzeuge eine Führungsrolle auf den Weltmärkten einzunehmen. Die Industriesubventionen in China sind nach DiPippo et al. (2022) und aktuellen OECD Studien um das Drei- bis Vierfache bzw. bis hin zum Neunfachen höher als in den großen EU- und OECD-Ländern. Nach einer konservativen Schätzung beliefen sich die Industriesubventionen in China im Jahr 2019 auf rund 221 Mrd. Euro oder 1, 73 Prozent des chinesischen BIP. Am aktuellen Rand des Jahres 2022 waren zudem die direkten staatlichen Subventionen für einige der dominierenden chinesischen Hersteller grüner Technologieprodukte deutlich gestiegen - allein der Elektroautohersteller BYD erhielt 2, 1 Mrd. Euro. Die Autoren weisen darauf hin, dass die chinesischen Unternehmen von weiteren Unterstützungsmaßnahmen profitieren. Dazu zählen: Subventionierte Vorleistungen, der bevorzugte Zugang zu kritischen Rohstoffen, einem teils erzwungenen Technologietransfer und die Vorzugsbehandlung einheimischer Unternehmen in öffentlichen Vergabe- und Verwaltungsverfahren. Die Autoren empfehlen der EU, das laufende Antisubventionsverfahren gegen Elektroauto-Importe aus China zu nutzen, um mit der chinesischen Regierung in Verhandlungen einzutreten und sie zur Abschaffung von Subventionen zu bewegen, die für die EU besonders schädlich sind. |
| Keywords: | China, industrial subsidies, battery electric vehicles, wind turbines, railway rolling stock, EU anti-subsidy proceeding, China, Industriesubventionen, Batteriebetriebene Elektrofahrzeuge, Windturbinen, Schienenfahrzeuge, Antisubventionsverfahren der EU |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkpb:289609&r=ene |
| By: | Moritz A. Drupp; Ulrike Kornek; Jasper N. Meya; Lutz Sager |
| Abstract: | Environmental degradation and economic inequality are two of the defining challenges of the twenty-first century. We synthesize conceptual mechanisms that underpin inequality-environment interlinkages and take stock of the relevant empirical evidence. We propose three channels of interaction, describing, first, how the cost of environmental policy is distributed across households, second, how environmental benefits vary with household income, third, how income inequality and redistribution shape environmental outcomes. The three channels determine how both environmental quality and economic inequality matter for policy appraisal. We argue that it is crucial to consider inequality-environment interlinkages in economic research and policy design, as neither issue can be fully understood in isolation, and close by highlighting future research needs. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11036&r=ene |
| By: | Singh, Khushboo; Jana, Sebak Kumar |
| Abstract: | In today's globalized world, the interconnection between the economy and the environment is evident. A nation's prosperity and self-reliance hinge on adopting sustainable methods of energy production. Lack of energy security and self-sufficiency compels a country to import necessary energy resources, significantly impacting both sustainability and the foreign reserves. This paper addresses India's suboptimal utilization of energy resources, focusing on the import dependency in the energy sector due to the prevalent use of fossil fuel-based energy (conventional energy) from 2006 to 2020. Data analysis, incorporating graphical representations of conventional energy import and consumption, highlights the status, growth, and import dependency trends. The findings reveal that India heavily relies on imports for conventional energy resources, particularly crude oil. The paper concludes that the key solution for improving economic and environmental conditions lies in transitioning towards renewable energy resources. |
| Keywords: | Energy import dependency, conventional energy, sustainability, renewable energy. |
| JEL: | Q40 |
| Date: | 2024–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120577&r=ene |
| By: | Afees A. Salisu (Centre for Econometrics & Applied Research, Ibadan, Nigeria; Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Ahamuefula E. Ogbonna (Centre for Econometrics & Applied Research, Ibadan, Nigeria); 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 employ the generalized autoregressive conditional heteroscedasticity-mixed data sampling (GARCH-MIDAS) framework to forecast the daily volatility of 19 dollar-based exchange rate returns based on monthly metrics of oil price uncertainty (OPU), and relatively broader global and country-specific energy market-related uncertainty indexes (EUI) over the daily period of January, 1996 to September, 2022. We find that the global EUIs tend to perform better than the OPU, in terms of their respective GARCH-MIDAS-based forecast performances relative to the benchmark (GARCH-MIDAS-realized volatility (RV)) model, highlighting the need to look beyond the oil market to capture energy related uncertainties. This line of reasoning is further enhanced when we observe the relative (to the United States) country-specific EUIs to outperform the benchmark in a statistically significant manner for at least 14 currencies across the short-, medium-, and long-term forecasting horizons. Our findings have important implications for currency traders. |
| Keywords: | Monthly Oil Price and Energy Market Uncertainties, Daily Exchange Rate Returns Volatility, GARCH-MIDAS, Forecasting |
| JEL: | C32 C53 F31 F37 Q02 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202418&r=ene |
| By: | Pica-Téllez, Andrés; Cid, Francisca; Ferrer, Jimy; Tula, Francisco; Salas, Johanna; Mora, Marianella; Ávila, Sandra |
| Abstract: | En este documento se presenta la estimación del precio social del carbono en Costa Rica como resultado de la asistencia técnica prestada por la Comisión Económica para América Latina y el Caribe (CEPAL) al Ministerio de Planificación Nacional y Política Económica de ese país. Se incluyen algunas consideraciones económicas para introducir el precio social del carbono como parte de la evaluación de los proyectos de inversión. Se presentan distintas metodologías que pueden usarse para definir un precio social del carbono, así como experiencias internacionales sobre el uso de estos precios y algunos valores sugeridos estimados por organismos internacionales. Sobre la base de los requerimientos de información de las distintas metodologías y su disponibilidad en Costa Rica, se seleccionó como mejor alternativa actual la definición política con base empírica. Para la estimación se desarrolló un análisis multicriterio (AMC). Los resultados del estudio recomiendan utilizar un precio social del carbono de 40 dólares de 2021 por tonelada. También se presentan valores de referencia (rango) para el precio social del carbono en Costa Rica obtenidos mediante una evaluación comparativa, basada en un análisis econométrico de las preferencias reveladas por los países que han implementado un precio social del carbono a nivel nacional. |
| Date: | 2024–03–20 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:69074&r=ene |
| By: | Altsitsiadis, E.; Kaiser, M.; Tsakas, A.; Kyriakidis, A.; Stamos, A. |
| Abstract: | Clean energy transition underpins the European Energy strategy with ambitious objectives for Renewable Energy Technologies (RET) deployment. Yet, social support remains a significant barrier to accelerating the energy transition. Existing studies have examined wide-ranging social-psychological factors that can affect support for RETs but have failed to address key local barriers. This study aims to illuminate regional characteristics that can influence social support for energy alternatives by assessing public support for two emerging renewables, hydrogen and biomethane, in three different EU countries, the Netherlands, Spain and Greece. We combine our micro-data with EU regional indicators to extend our model beyond known individual-level factors and test the effects of higher-scale antecedents covering regional development, poverty and social exclusion statistics. Our multilevel regression analysis reveals that severe material deprivation plays a key role in social support for RETs. In particular, our results suggest that people living in regions with elevated poverty levels are less likely to support such energy systems. This finding is consistent for both the renewables examined in the three EU countries studied. Our research offers significant and timely insights for accelerating the clean energy transition, while highlighting the need for better strategies to gain and increase social support for RETs. |
| Keywords: | Renewable energy acceptance, just transition, energy poverty, regional factors |
| JEL: | I32 Q42 Q55 R58 |
| Date: | 2024–04–18 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:2419&r=ene |
| By: | Peter Andre (Leibniz Institute for Financial Research SAFE); Teodora Boneva (Department of Economics, University of Bonn); Felix Chopra (Department of Economics, University of Copenhagen); Armin Falk (Department of Economics, University of Bonn) |
| Abstract: | We document the individual willingness to act against climate change and study the role of social norms in a large sample of US adults. Individual beliefs about social norms positively predict pro-climate donations, comparable in strength to universal moral values and economic preferences such as patience and reciprocity. However, we document systematic misperceptions of social norms. Respondents vastly underestimate the prevalence of climate-friendly behaviors and norms. Correcting these misperceptions inan experiment causally raises individual willingness to act against climate change as well as individual support for climate policies. The effects are strongest for individuals who are skeptical about the existence and threat of global warming. |
| Keywords: | Climate change, climate behavior, climate policies, social norms, misperception, beliefs, economic preferences, moral values, survey experiments |
| JEL: | D64 D83 D91 Q51 Q54 Z13 |
| Date: | 2024–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:kud:kucebi:2408&r=ene |
| By: | Natasha Aggarwal (TrustBridge Rule of Law Foundation; TrustBridge Rule of Law Foundation); Bhavin Patel (TrustBridge Rule of Law Foundation) |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bjd:wpaper:5&r=ene |
| By: | Batten, Sandra (Bank of England); Millard, Stephen (National Institute of Economic and Social Research, Durham University Business School, University of Portsmouth and Centre for Macroeconomics) |
| Abstract: | We build an open economy Dynamic Stochastic General Equilibrium model with energy and use it to simulate the impact of different climate policies – specifically the introduction of a carbon tax and bans on petrol or gas usage by households – on macroeconomic variables. We show how the introduction of a carbon tax leads to falls in both households’ consumption of energy and firms’ use of energy in production, while also having the effect of shifting the production of electricity from fossil fuels to renewable sources. The effects of a ban on household consumption of petrol or gas depend crucially on the elasticity of substitution between different energy sources in consumption. For very low elasticities of substitution, a ban on petrol or gas usage also led households to cut down on their use of electricity, whereas for larger elasticities of substitution, households switched into electricity. Regardless of the elasticity of substitution, aggregate consumption fell on impact in response to the bans before rising over time. GDP and the gross output of non‑energy fall in response to both a carbon tax and a ban on petrol or gas consumption by households. Finally, both policies result in a temporary increase in inflation and a tightening in monetary policy. |
| Keywords: | Climate change; dynamic stochastic general equilibrium; carbon tax; climate policy; energy; energy policy; renewable energy; macroeconomics; UK economy |
| JEL: | E32 Q28 Q38 Q43 Q48 Q58 |
| Date: | 2024–03–08 |
| URL: | http://d.repec.org/n?u=RePEc:boe:boeewp:1064&r=ene |
| By: | Jonatan Pinkse (The University of Manchester, King's College London, The Productivity Institute) |
| Keywords: | Productivity, green transition, Net Zero |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:anj:ppaper:024&r=ene |
| By: | Richhild Moessner |
| Abstract: | This paper provides ex-post empirical evidence on the effects of green technology support policies, in comparison with other climate policies, on carbon dioxide emissions at the aggregate national level. The paper uses cross-country dynamic panel estimation for a sample of 38 countries over the period from 1990 to 2015, controlling for macroeconomic determinants such as economic development, GDP growth, urbanisation and the energy mix. It uses a new index which measures the strength of green technology support policies, including separate sub-indices for the public support of expenditure on research and development of low-carbon energy technologies, and for the support of the adoption of wind energy and of solar energy. We find that an increase by one index point of the green technology support policy index leads to a significant reduction of around 0.9% in CO2 emissions per capita in the short run, and of around 3.7% in the long run. An increase by one index point of the green R&D expenditure support policy index leads to a significant reduction of around 0.4% in CO2 emissions per capita in the short run, and of around 1.7% in the long run. An increase by one index point of the wind energy support policy index leads to a significant reduction of around 0.5% in CO2 emissions per capita in the short run, and of around 2.1% in the long run. |
| Keywords: | green technology support policies, solar energy, wind energy, climate policigreen technology support policies, solar energy, wind energy, climate policies, carbon tax, carbon dioxide, climate changees, carbon tax, carbon dioxide, climate change, emissions |
| JEL: | Q00 Q48 Q58 Q55 Q40 Q50 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11047&r=ene |
| By: | Falcão, Tatiana |
| Abstract: | This paper aims to highlight the key policy considerations undertaken when drafting the articles that informed the text of the Multilateral Carbon Tax Treaty (MCTT). It is the product of the many comments received from the commentators invited to provide inputs to the MCTT. The MCTT comprises 31 articles that together establish an obligation on contracting states to tax carbon contained in fossil fuel ore or one of its byproducts, at the level of extraction. If the country entitled to tax at the level of extraction chooses not to exercise its right to tax, it allows first the country of refining or processing, and second, the country of consumption, under a secondary and tertiary allocation of rights. The MCTT identifies a minimum carbon tax, but not a ceiling. It provides for different tax rate schedules according to the country’s level of development and following the principle of common but differentiated responsibilities. This is an environmental agreement that uses a tax instrument (a carbon tax) to assist countries in meeting the mitigation objective contained in the nationally determined contributions, as set forth in the Paris Agreement. In other words, it is an environmental agreement that enables countries to use a tax instrument to quantify and reduce carbon dioxide emissions in furtherance of the climate commitments assumed under the Paris Agreement. |
| Keywords: | Climate Change, Development Policy, Environment, Politics and Power, |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18295&r=ene |
| By: | Chukwunonso Ekesiobi (Anambra State, Nigeria.); Stephen Obinozie Ogwu (Asaba, Delta State, Nigeria); Joshua Chukwuma Onwe (Enugu State, Nigeria); Ogonna Ifebi (Anambra State, Nigeria); Precious Muhammed Emmanuel (University of Ibadan, Nigeria); Kingsley Nze Ashibogwu (Ozoro, Delta State, Nigeria) |
| Abstract: | Our study assesses financial development and debt status impact on energy efficiency in Nigeria as a developing economy. We combined the Autoregressive Distributed Lag (ARDL), FMOLS, and CCR analytical methods to estimate the parameters for energy efficiency policy recommendations. Secondary data between 1990 and 2020 were used for the analysis. The result confirms the long-run nexus between energy efficiency, financial development and total debt stock. Furthermore, the ARDL estimates for our key variables show that financial development promotes energy efficiency in the short run but hinders long-run energy efficiency. Total debt stock limits energy efficiency in Nigeria in short and long-run periods. The environmental consequences of energy intensity are being felt globally, with the developing countries most vulnerable. The cheapest way to curb these consequences is to promote energy efficiency to reduce the disastrous effect. Driving energy efficiency requires investment in energy-efficient technology, but the challenge for developing economies i.e. Nigeria's funding, remains challenging amid a blotted debt profile. This becomes crucial to investigate how financial sector development and debt management can accelerate energy-efficient investments in Nigeria. The financial sector must ensure the availability of long-term credit facilities to clean energy investors. The government must maintain a sustainable debt profile to pave the way for capital expenditure on clean energy projects that promote energy efficiency. The limitation of this study is that the scope is limited to Nigeria as a developing economy. The need to support energy efficiency projects is a global call requiring cross-country analysis. Despite our study focusing on Nigeria, it provides useful insights that can guide energy efficiency policy through the financial sector and debt management. |
| Keywords: | Financial Development, Public Debt, Energy Efficiency, Environment, Nigeria |
| JEL: | E22 E44 E62 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/016&r=ene |
| By: | Cappelli, Federica |
| Abstract: | The question of whether changes in income inequality affect CO2 emissions remains a topic of debate at both theoretical and empirical levels. The purpose of this paper is to examine the effect of changes in the full spectre of income distribution on consumption based CO2 emissions per capita. To do so, we estimate a dynamic difference-GMM model and a dynamic threshold regression model allowing for endogeneity on a panel database covering 107 countries between 1990 and 2019. Our analysis highlights how different income classes contribute very differently to consumption-based CO2 emissions. In addition, by accounting for between-country inequalities in the average income of each income group, we uncover non-linearities in the impact on carbon emissions. More specifically, the impact of an increase in the income share of the top 10% on per capita consumption-based carbon emissions varies according to their average income level: it is negative at lower income levels and becomes positive as their income rises. The contribution of the middle class is negative at all income levels, while the CO2 contribution of the poorest segments is negligible. |
| Keywords: | Environmental Economics and Policy, Research Methods/ Statistical Methods |
| Date: | 2024–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:341641&r=ene |
| By: | PERPIÑA CASTILLO Carolina; HORMIGOS FELIU Clara (European Commission - JRC); DORATI Chiara (European Commission - JRC); KAKOULAKI Georgia (European Commission - JRC); PEETERS Leen; QUARANTA Emanuele (European Commission - JRC); TAYLOR Nigel (European Commission - JRC); UIHLEIN Andreas (European Commission - JRC); AUTERI Davide (European Commission - JRC); DIJKSTRA Lewis (European Commission - JRC) |
| Abstract: | The green energy transition and its boost to the deployment of renewable energy can offer a unique opportunity for rural areas to benefit from their natural resources. The present study aims to provide a quantitative assessment of the technical potential of renewable energy sources in the EU’s rural areas, focusing on solar, wind and hydropower. This will help to provide relevant insights into how rural areas and communities can contribute to and benefit from the EU’s green energy transition, without undermining natural areas, key biodiversity and bird areas, high-value natural arms and food production. Moreover, a comparative analysis between current renewable energy production and potential in rural areas identifies which sustainable development trajectories for the future deployment of renewables are the most suitable in each specific territory. The report shows that solar photovoltaic systems in rural areas generate 136TWh a year but have the potential to generate 60 times more (8600TWh/year). Rural areas produce 280TWh a year through onshore wind but have the potential to produce four times more (1200TWh/year). Hydropower production in rural areas yields 280TWh a year, but it could potentially be 25% higher (350TWh/year). This work also addresses the concept of energy communities, as an emerging framework intended to foster a just green transition for rural communities, where generated values and benefits can be retained locally, while also promoting democratic participation and citizen engagement. |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc135612&r=ene |
| By: | Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw); Zahra Mousavi; Leon Podkaminer (The Vienna Institute for International Economic Studies, wiiw); Bernd Christoph Ströhm (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Chart of the Month Moving up the ladder of ‘complexity’ via structural transformation by Francesca Guadagno Opinion Corner The European Central Bank’s bemusing ‘strategy’ by Leon Podkaminer After a protracted period of inaction, in November 2022 the ECB finally embarked on policy tightening – even though inflation in the euro area had by that time already started to decline. One possible explanation for this paradox may have been the ECB’s motivation to ‘save face’ in a situation where inflation could hardly be contained by conventional monetary policy tools. Patents as green technology barometers Trends and disparities by Mahdi Ghodsi and Zahra Mousavi As the urgency of the climate crisis grows, this study offers a unique perspective on eco-innovation, through the analysis of patents granted in green and environmental technologies. The research identifies energy generation and transportation as the leading sectors, with 36% and 34%, respectively, of all green patents granted globally. However, while the advanced economies are at the forefront of green innovation, the developing nations are lagging significantly behind. This inequality not only exacerbates climate vulnerabilities, but also widens the global divide. Investment in natural gas capacities in the Western Balkans by Bernd Christoph Ströhm Russia’s military invasion of Ukraine in February 2022 forced those EU countries that relied on Russian gas to diversify their energy supplies. In the Western Balkans, Croatia in particular is transitioning to become a regional energy powerhouse and power hub, while the governments of Montenegro and Serbia are also investing in the expansion of natural gas capacities. With those investments, LNG could temporarily become the main energy source for Western Balkan countries and could facilitate the phasing-out of coal use in the region by 2050. Monthly and quarterly statistics for Central, East and Southeast Europe |
| Keywords: | economic complexity index, inflation, monetary policy, green technologies, greenhouse gas emissions, patents, LNG, energy mix, natural gas pipelines, energy supply diversification |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:wii:mpaper:mr:2023-10&r=ene |
| By: | Teodora Dobos; Martin Bichler; Johannes Kn\"orr |
| Abstract: | The European day-ahead electricity market is split into multiple bidding zones. Within these zones, a uniform energy price is computed for each hour. Large bidding zones have been under scrutiny. The fact that zonal clearing ignores the transmission capacities within zones and the increase in renewables lead to a growing number of interventions in the generation of energy sources and large redispatch costs. The European Union Agency for the Cooperation of Energy Regulators (ACER) proposed alternative bidding zone configurations that should be analyzed as part of the Bidding Zone Review. For Germany, four alternative configurations were suggested. Bidding zones shall be stable and based on long-term, structural congestion in the grid. We analyzed the proposed configurations considering different clustering algorithms and periods. We found that the configurations do not reduce the price standard deviations within zones considerably, while the average prices across zones are similar. Other configurations identified based on clustering prices lead to lower price standard deviations but are not geographically coherent. Importantly, different configurations emerge depending on clustering features, algorithm, and period considered. Given the substantial changes in energy supply and demand that can be expected in the future, defining stable configurations appears to be a moving target. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.06489&r=ene |
| By: | Schoppengerd, Stefan |
| Abstract: | Industrial trade unions in Europe and North America often struggle to develop a coherent strategy on climate change and overcoming fossil fuel production patterns. Trade union policy in the German steel industry is an interesting example of this: the "green" restructuring is firmly in favour, as it is easily compatible with positions on maintaining production sites. However, the hydrogen technology required for this brings with it new contradictions. At the same time, the IG Metall trade union recently held a collective bargaining round on reducing working hours in the socio-ecological transformation. This working paper analyses this situation by reconstructing the fundamental structures of industrial relations, the coming hydrogen economy and working time policy. |
| Keywords: | Steel, Hydrogen, Working Time Policy, Just Transition, Socio-Ecological Transformation |
| JEL: | J51 J59 L50 L61 O14 Q55 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ipewps:290386&r=ene |
| By: | Iost, Susanne; Glasenapp, Sebastian; Jochem, Dominik; Shmyhelska, Liliya; Weimar, Holger |
| Abstract: | Alternative Kraftstoffe gelten laut dem Nationalen Klimaschutzplan 2050 als ein wesentlicher Baustein zur Dekarbonisierung des Verkehrssystems in Deutschland. Zu den alternativen Kraftstoffen zählen auch Kraftstoffe auf Basis biogener Ressourcen. Welchen Beitrag diese Kraftstoffe für die Reduktion der Treibhausgasemissionen im Verkehrssektor leisten können, hängt u.a. von der nachhaltigen Rohstoffverfügbarkeit ab. Im Projekt BIOKRAFT wurde die nachhaltige Verfügbarkeit von holzartiger Biomasse für den Einsatz im Verkehrssektor untersucht. Der vorliegende Bericht (BIOKRAFT AP 3) beschreibt als Grundlage dafür das Aufkommen und die Verwendung von Holzrohstoffen in Deutschland und der EU-27 für den Zeitraum 2000 - 2040. Für den Einsatz im Verkehrssektor liegt der Fokus auf Rest- und Abfallstoffen, da die möglichst hochwertige stoffliche Nutzung von Stamm- und Industrieholz klar priorisiert wird und der Einsatz von diesen Sortimenten im Verkehrssektor kritisch hinterfragt werden muss. Die historische Entwicklung von Holzaufkommen und -verwendung in Deutschland und der EU-27 wurde für den Zeitraum 2000 bis 2020 analysiert. Die zukünftig potenziell verfügbaren und verwendeten Mengen holziger Biomasse wurden in einer systematischen Literaturrecherche ermittelt. Der betrachtete Zeitraum war 2020 bis 2040 für Deutschland und die EU-27. Diese quantitativen Untersuchungen waren Teil des Projektes BIOKRAFT1. Insgesamt sind das Aufkommen und die Verwendung von Rohholz in Deutschland und der EU-27 zwischen den Jahren 2000 und 2020 gestiegen. Im Vergleich zum Jahr 2000 stieg die Rohholzentnahme aus dem Wald in Deutschland bis 2020 um 34 % (von knapp 60 auf knapp 79 Mio. m³). Eine ähnliche Tendenz ist in der EU-27 zu beobachten (von 419 auf 508 Mio. m³). In Deutschland lag der Nadelholzanteil an der Rohholzentnahme im betrachteten Zeitraum im Mittel bei 74 %. Seit dem Jahr 2018 ist die Menge an Schadholz infolge von Trockenheit und nachfolgendem Schädlingsbefall deutlich angestiegen. Dies trug zum Anstieg des gesamten Rohholzeinschlags bei. Im Zeitraum von 2000 bis 2020 stieg auch die Rohholzverwendung an. In den traditionellen Verwendungssektoren (Sägeindustrie, Zellstoff- sowie Holzwerkstoffindustrie) wurde bis ins Jahr 2020 25 % mehr Holz verwendet, als noch im Jahr 2000. In der Energieerzeugung stieg die Rohholzverwendung im gleichen Zeitraum von knapp 9 auf mehr als 20 Mio. m³. Im Verlauf stieg die energetische Rohholzverwendung auf den bisher höchsten Wert von ca. 28 Mio. m³ im Jahr 2013 und sank bis zum Jahr 2020 auf ca. 20 Mio. m³. Reststoffe aus primären Aufkommensquellen sind Rinde, Waldrestholz und Landschaftspflegematerial. Deren Aufkommen sind schwer zu beziffern. Zum einen wird beim Waldrestholz die Abgrenzung des Begriffs unterschiedlich gehandhabt, zum anderen fehlen regelmäßig bei allen primären Reststoffen direkt erhobene Daten. Sekundäre Holzreststoffe sind Altholz, Sägenebenprodukte, sonstiges Industrierestholz und Ablauge. Das Aufkommen an sekundären Holzreststoffen ist im Grundsatz von der Rohholzverwendung abhängig, da Holzreststoffe bei Be- und Verarbeitung von Rohholz sowie durch die Entsorgung von Holzprodukten entstehen. Ihr Aufkommen kann recht zuverlässig aus der empirischen Erfassung auf Seite der Verwender abgeleitet werden. Die Verwendung dieser Reststoffe erfolgt zur Energieerzeugung, zur Herstellung von Energieholzprodukten (v.a. Pellets) sowie in der Holzwerkstoff- und Zellstoffindustrie. Ablauge wird in der Zellstoffindustrie energetisch genutzt. Altholz wird in Deutschland zu mehr als 80 % zur Energieerzeugung verwendet, wobei davon wiederum ca. 80 % in Biomassefeuerungsanlagen mit einer Feuerungswärmeleistung von > 1 MW genutzt werden. Für die EU-27 sind kaum Daten zu Aufkommen und Verwendung von Holzreststoffen verfügbar, daher können hier keine belastbaren Schätzungen vorgenommen werden. Mögliche zukünftige Entwicklungen von Aufkommen und Verwendung von Holzrohstoffen werden häufig mittels szenarienbasierter Modellierungen geschätzt. Die zugrundliegenden Szenarien gehen zum einen von einer erhöhten Holznutzung aus. Zum anderen werden Szenarien modelliert, in denen politische und gesellschaftliche Tendenzen zu mehr Naturschutz und weniger Holznutzung angenommen werden. Hier wird der Kohlenstoffspeicherung im Wald durch Steigerung des stehenden Vorrats eine größere Bedeutung beigemessen, was eine geringere Rohholzproduktion zur Folge hätte. Somit ergeben Untersuchungen zur zukünftigen Holzverfügbarkeit in der Modellierungsperiode 2037-2042 für Deutschland potenzielle Rohholzaufkommen zwischen 41 Mio. m³ und knapp 100 Mio. m³ pro Jahr. Für die EU wird das potenzielle Rohholzaufkommen in den modellierten Basisszenarien auf ca. 330 bis 480 Mio. m³ beziffert. Informationen zum zukünftigen Aufkommen von primären und sekundären Holzreststoffen sind spärlich. Es kann jedoch davon ausgegangen werden, dass bei einem möglichen Rückgang der Nutzung von Rohholz auch die Mengen an Holzreststoffen abnehmen werden.Für Deutschland beruhen die in die Auswertung eingeschlossenen Modellierungen des zukünftigen Holzaufkommens auf Daten der Bundeswaldinventur von 2012 (BWI 3). Die modellierten Szenarien berücksichtigen keine möglichen Auswirkungen des Klimawandels auf den Wald in Deutschland. Vor dem Hintergrund stark zunehmender Waldschäden seit 2018 und der damit möglicherweise verbundenen Vorratsabsenkung im Wald in Deutschland, wird sich das zukünftige Aufkommen eher im unteren Bereich der Modellierungsergebnisse bewegen. Für eine sichere Bewertung sind die kommenden Inventurdaten der BWI 4 abzuwarten, die voraussichtlich Ende 2024 zur Verfügung stehen werden. Die vorliegende Auswertung gibt einen umfassenden Überblick über Aufkommen und Verwendung von Holzrohstoffen in Deutschland. Es wird gezeigt, welche Reststoffe bei der Be- und Verarbeitung von Holz entstehen und dass sie in unterschiedlichen Sektoren stofflich oder energetisch verwendet werden. Die Auswertung zeigt, dass auf Grundlage der verfügbaren Daten keine direkte Gegenüberstellung von Aufkommen und Verwendung und somit keine verlässliche Schätzung verfügbarer Potenziale möglich ist. Theoretisch könnten in Verwendung befindliche Holzrohstoffe für die Herstellung von Biokraftstoffen umgenutzt werden. Um dann das Ziel einer größtmöglichen Reduktion von Treibhausgasen zu erreichen, müsste der potenzielle Reduktionseffekt im Verkehrssektor im Kontext der anderen möglichen Verwendung von Holzrohstoffen betrachtet werden. |
| Abstract: | Alternative fuels are considered, according to the National Climate Action Plan 2050, as a crucial element for decarbonizing the transportation system in Germany. Among the alternative fuels are those based on biogenic resources. The contribution of these fuels to reducing greenhouse gas emissions in the transportation sector depends, among other factors, on the sustainable availability of woody biomass. In the BIOKRAFT project, the sustainable availability of woody biomass for use in the transportation sector was assessed. The presented report (BIOKRAFT AP 3) describes the supply and use of wood resources in Germany and the EU-27 for the period 2000 - 2040. For use in the transportation sector, the focus is on residual and waste materials, as the high-quality material utilization of stem and industrial wood is clearly prioritized, and the use of these assortments in the transportation sector must be critically examined. The historical development of wood supply and utilization in Germany and the EU-27 was analyzed for the period 2000 to 2020. Future potentially available and used quantities of woody biomass were determined through systematic literature research. The period considered was 2020 to 2040 for Germany and the EU-27. These quantitative investigations were part of the BIOKRAFT2 project. Overall, the supply and use of roundwood in Germany and the EU-27 increased between 2000 and 2020. Compared to 2000, roundwood removals from forests in Germany increased by 34 % by 2020 (from just under 60 to just under 79 million m³). A similar trend is observed in the EU-27 (from 419 to 508 million m³). In Germany, the proportion of softwood in roundwood removals averaged 74 % during the period under review. Since 2018, the amount of damaged timber has increased significantly due to drought and subsequent pest infestations, contributing to the overall increase in roundwood fellings. Roundwood utilization also increased from 2000 to 2020. In traditional utilisation sectors (sawmilling industry, pulp and paper industry, wood-based panel industry), 25 % more wood was used by 2020 compared to 2000. In energy generation, roundwood use increased from just under 9 to over 20 million m³ in the same period. Over time, the use of roundwood for energy increased to its highest level of approximately 28 million m³ in 2013 and then decreased to around 20 million m³ by 2020. Wood residues from primary sources include bark, forest residues and landscape conservation material. Their volumes are difficult to quantify. The definition of forest residues is handled differently, and there is a regular lack of directly collected data for all primary wood residues. Secondary wood residues are recovered post-consumer wood, sawmill by-products, other industrial waste wood and waste liquor. The quantity of secondary wood residues depends primarily on the use of roundwood, as wood residues are produced during the treatment and processing of roundwood and the disposal of wood products. Their quantities can be derived quite reliably from the empirical data collected in wood using sectors. These residues are used for energy generation, production of energy wood products (especially pellets), and in the wood-based materials and pulp industries. Waste liquor is utilised for energy in the pulp industry. In Germany, over 80 % of recovered post-consumer wood is used for energy generation, with approx. 80 % of this used in biomass combustion plants with a rated thermal input of > 1 MW. Data on the supply and use of wood residues are scarce for the EU-27, so reliable estimates cannot be made. Possible future developments in supply and use of woody biomass are often estimated using scenario-based modelling. On the one hand, the underlying scenarios assume increased wood utilisation. On the other hand, scenarios are modelled in which political and social trends towards more nature conservation and less wood use are assumed. Here, greater importance is attributed to carbon storage in forests by increasing standing stock, resulting in lower roundwood production. Modelling results of these studies show potential future roundwood volumes of between 41 million m³ and just under 100 million m³ per year for Germany in the 2037-2042 modelling period. For the EU, the potential roundwood supplies in the modelled baseline scenarios are estimated at around 330 to 480 million m³. Information on the future supply of primary and secondary wood residues is scarce. However, it can be assumed that if the utilisation of roundwood declines, the quantities of wood residues will also decrease. For Germany, the modelling of future wood supplies included in the evaluation is based on data from the 2012 National Forest Inventory (BWI 3). The modelled scenarios do not take into account any possible effects of climate change on forests in Germany. The modelled scenarios do not consider possible effects of climate change on forests in Germany. Against the backdrop of significantly increasing forest damage since 2018 and the potentially associated reduction in stock in German forests, future supplies are likely to be at the lower end of the modelling results. To make a reliable assessment, the upcoming inventory data from BWI 4, expected to be available by the end of 2024, must be awaited. The presented analysis provides a comprehensive overview of the supply and use of woody biomass in Germany. It shows which wood-based residues are generated during the treatment and processing of wood and how they are utilised in different sectors for material or energy purposes. Based on the available data, no direct comparison of supply and use is possible, and thus no reliable estimation of available potentials. Theoretically, wood raw materials currently in use could be repurposed for the production of biofuels. To achieve the goal of maximum reduction of greenhouse gases, the potential reduction effect in the transportation sector must be considered in the context of other possible uses of woody biomass. |
| Keywords: | Biokraftstoffe, Biomasse, Holzrohstoffe, Kalamität, Schadholz, Aufkommen, Verwendung, Szenarien, systematische Literaturanalyse, advanced biofuels, woody biomass, woody residues, calamities, damaged timber, supply, use, scenarios, systematic literature review |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:jhtiwp:289612&r=ene |
| By: | Efthymios Altsitsiadis; Micha Kaiser; Anastasios Tsakas; Anastasios Kyriakidis; Angelos Stamos |
| Keywords: | Renewable energy acceptance, just transition, energy poverty, regional factors |
| JEL: | I32 Q42 Q55 R58 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2402&r=ene |
| By: | Garnache, Cloé; Ghosh, Arijit; Gibney, Garreth |
| Abstract: | Greenstone et al. examine the effect of the introduction of automatic air pollution monitoring on the reporting of local air pollution in China. Using 654 regression discontinuity designs (RDDs) based on city-level variation in the day that monitoring was automated, they find an immediate and lasting increase of 35 percent in reported PM10 concentrations post-automation. Moreover, they find that automation's introduction increases online searches for face masks and air filters by 200 percent and 28 percent, respectively, using an RDD. Results are consistent when using an event study design. First, we were able to computationally replicate the results. Second, we find that results are robust to more flexible specifications of the weather variables, to re-constructed weather variables using the same matching procedure as the authors (i.e., closest station) and meteorological data with additional weather stations, to alternative construction of the weather variables using an inverse distance weighted approach of the surrounding weather stations, and to more flexible choices of fixed effects (up to the city level). Finally, we find limited evidence of discontinuity in objective measures of ground pollution (i.e., AOD) for a sub-sample using alternative weather variables. The estimate, however, is economically insignificant. Moreover, no discontinuity is observed in the full sample. Therefore, we believe this result does not invalidate the original study's findings. |
| JEL: | D82 O13 P28 Q53 Q55 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:i4rdps:113&r=ene |
| By: | Bickenbach, Frank; Dohse, Dirk; Langhammer, Rolf J.; Liu, Wan-hsin |
| Abstract: | China setzt in großem Umfang Subventionen ein, um auch bei den grünen Technologiebranchen Elektrofahrzeuge, Windturbinen und Schienenfahrzeuge eine Führungsrolle auf den Weltmärkten einzunehmen. Die Industriesubventionen in China sind nach DiPippo et al. (2022) und aktuellen OECD Studien um das Drei- bis Vierfache bzw. bis hin zum Neunfachen höher als in den großen EU- und OECD-Ländern. Nach einer konservativen Schätzung beliefen sich die Industriesubventionen in China im Jahr 2019 auf rund 221 Mrd. Euro oder 1, 73 Prozent des chinesischen BIP. Am aktuellen Rand des Jahres 2022 waren zudem die direkten staatlichen Subventionen für einige der dominierenden chinesischen Hersteller grüner Technologieprodukte deutlich gestiegen - allein der Elektroautohersteller BYD erhielt 2, 1 Mrd. Euro. Die Autoren weisen darauf hin, dass die chinesischen Unternehmen von weiteren Unterstützungsmaßnahmen profitieren. Dazu zählen: Subventionierte Vorleistungen, der bevorzugte Zugang zu kritischen Rohstoffen, einem teils erzwungenen Technologietransfer und die Vorzugsbehandlung einheimischer Unternehmen in öffentlichen Vergabe- und Verwaltungsverfahren. Die Autoren empfehlen der EU, das laufende Antisubventionsverfahren gegen Elektroauto-Importe aus China zu nutzen, um mit der chinesischen Regierung in Verhandlungen einzutreten und sie zur Abschaffung von Subventionen zu bewegen, die für die EU besonders schädlich sind. |
| Abstract: | China makes extensive use of subsidies in order to take a leading role on the global markets in the green technology sectors of electric vehicles, wind turbines and railway rolling stock. According to DiPippo et al. (2022) and recent OECD studies, the industrial subsidies in China are at least three to four times or even up to nine times higher than in the major EU and OECD countries. According to a very conservative estimate, industrial subsidies in China amounted to around EUR 221 billion or 1.73% of Chinese GDP in 2019. According to recent data of 2022, direct government subsidies for some of the dominant Chinese manufacturers of green technology products had also increased significantly - the electric car manufacturer BYD alone received EUR 2.1 billion. The authors point out that Chinese companies are benefiting from further support measures, including subsidized inputs, preferential access to critical raw materials, forced technology transfers, the strategic use of public procurement and the preferential treatment of domestic firms in administrative procedures. The authors recommend the EU to use its anti-subsidy proceeding against BEV imports from China to enter into negotiations with the Chinese government and persuade it to abolish public support measures that are particularly harmful to the EU. |
| Keywords: | China, Industriesubventionen, Batteriebetriebene Elektrofahrzeuge, Windturbinen, Schienenfahrzeuge, Antisubventionsverfahren der EU, China, industrial subsidies, battery electric vehicles, wind turbines, railway rolling stock, EU anti-subsidy proceeding |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkpb:289608&r=ene |
| By: | Rolf Golombek; Michael Hoel; Snorre Kverndokk; Stefano Ninfole; Knut Einar Rosendahl; Michael Olaf Hoel |
| Abstract: | It is widely recognized that a cost-efficient way to achieve the climate targets of the Paris agreement requires investment in carbon capture and storage (CCS). However, to trigger sizeable investment in CCS the carbon price must exceed the historic carbon prices. This paper examines whether a higher price of carbon enhances competition of storage services and thus leads to lower costs of CCS. Using a Hotellling model with two storage sites, each being located at each end of the Hotelling line, we show that there are three alternative competition regimes. The level of the carbon tax determines which regime materializes. For “low” carbon taxes, there is no competition between the two storage firms. For “high” carbon taxes, there is standard Bertrand competition between the two storage firms. Finally, for “intermediate” carbon taxes, there is so called partial competition with multiple equilibria. Contrary to the standard conclusion on competition, we find that when each storage site is imposed to charge the same price for all its clients, the price under monopoly is lower than under partial competition. We offer several extensions of the model as well as numerical illustrations. With our reference parameter values and a carbon tax sufficiently high to reach the Paris targets, we find that we may end in a partial competition regime. |
| Keywords: | Hotelling line, kinked demand curve, duopoly, multiple equilibria, emission tax, carbon capture and storage |
| JEL: | L13 Q35 Q38 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11052&r=ene |
| By: | Sarah Nandnaba (Department of Economics, Ecole normale superieure (ENS) Paris-Saclay, 91190 Gif-sur-Yvette, France.); Abebe Hailemariam (Bankwest Curtin Economics Centre, Faculty of Business and law, Curtin University Perth, 6102, Australia); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Xin Sheng (Lord Ashcroft International Business School, Anglia Ruskin University, Chelmsford, United Kingdom.) |
| Abstract: | The paper empirically examines the role of Greenhouse Gases (GHGs) emissions on the oil consumption-growth nexus of sixteen OECD countries. Using a nonlinear local projection approach and a long historical dataset from 1890 to 2022, we find that the impact of oil consumption on economic growth is conditional on the categorization of the countries based on the level of GHGs emissions. More specifically, we find that economies under the high-emission category face a slowdown in growth, while those in low-emission group can benefit from a positive shock in oil consumption, especially in the post World War II era. The results have important policy implications for sustainable growth. |
| Keywords: | Oil consumption, economic growth, sustainability, climate change, greenhouse gases emissions, nonlinear local projection |
| JEL: | Q43 Q53 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202417&r=ene |
| By: | Thomas Steger; Timo Trimborn |
| Abstract: | To gain insights into the mechanisms that shape the interaction between economic growth and climate change, we analyze the simplified DICE through the lens of growth theory. We analytically show that this model exhibits a continuum of saddle-point stable steady states, a property that carries over to a large set of (analytical and numerical) IAMs. This novel insight is important because it implies initial conditions of stock variables, notoriously difficult to calibrate, matter for the ultimate steady state, i.e. for the long-run economic and climate outcomes. However, we also show that a lack of information about the stock of global capital is considerably less consequential than a lack of information about GHG in the atmosphere. These properties have important implications for understanding the consequences of delayed climate policy implementation and the optimal carbon tax. We employ numerical techniques to show how a postponement of optimal climate policy implementation leads to a higher long-run temperature. We also show that the SCC-to-GDP ratio is in fact largely constant, despite transitional dynamics. However, its level depends strongly on the point in time the policy is implemented. Finally, we employ the setup to better understand the consequences of stronger TFP growth for the climate. |
| Keywords: | economic growth, climate change, IAM, DICE, continuum of steady states, delayed climate policy, TFP growth, peak temperature |
| JEL: | E10 H40 O44 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11053&r=ene |
| By: | Rose, Julian (RWI - Leibniz Institute for Economic Research); Ankel-Peters, Jörg; Hodel, Hanna; Sall, Medoune; Bensch, Gunther |
| Abstract: | Claims for removing fossil fuel subsidies in the Global South are based on climate and equity concerns, but they can be at odds with improving access to Liquefied Petroleum Gas (LPG) as a clean cooking fuel. We examine the case of urban Senegal where LPG usage rates were among the highest in sub-Saharan Africa in the late 2000s. Using Demographic and Health Survey (DHS) data, we show that LPG usage declined sharply following the removal of subsidies in 2009. Counterintuitively, the decline was not reversed when falling world market prices led to a local price decrease. To explore this puzzle, we use detailed cooking data from surveys we conducted in 2009 and 2019. We find that households change to charcoal after the subsidy removal, but they increasingly use newly promoted energy-efficient charcoal stoves. These stoves make charcoal cooking cheaper and hence the switch back to LPG less attractive. Our results underscore that the energy transition of the poor is highly price responsive – an important insight not only for the debate about fossil fuel subsidies but also carbon taxation. |
| Date: | 2024–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:6tgqs&r=ene |
| By: | Poltak T. Sinaga (School of Business and Management, Institut Teknologi Bandung, Indonesia Author-2-Name: Togar M. Simatupang Author-2-Workplace-Name: School of Business and Management, Institut Teknologi Bandung, Indonesia Author-3-Name: Mursyid H. Basri Author-3-Workplace-Name: School of Business and Management, Institut Teknologi Bandung, Indonesia Author-4-Name: Author-4-Workplace-Name: Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - Coal mining operations encounter substantial risks and uncertainties that originate from a wide array of sources, encompassing but not limited to natural calamities, supplier disruptions, market volatilities, regulatory modifications, and geopolitical instability. This study aims to conduct a comprehensive literature review on supply chain resilience in the coal mining industry and pinpoint potential avenues for further investigation. Methodology - A systematic literature review (SLR) was utilized to examine a total of 115 studies in the field of management and the coal mining supply chain. The studies were published from 2010 to 2023. The vulnerabilities and resilience strategies within the coal mining supply chain are the focal points of our research. We have integrated viewpoints from the domains of management and the coal mining supply chain to support our analysis. Findings - Challenges such as resource distribution, government policies, and maintenance are prevalent, pointing to the need for strategies that enhance performance through dynamic optimization and incentivizing integration. Practitioners must identify vulnerabilities in the coal mining supply chain to proactively anticipate and effectively manage potential disruptions, thus bolstering operational resilience. Novelty - This study fills the gap in extant literature by investigating the sequential application of supply chain resilience in the context of coal mining operations using the integrative view of supply chain nodes. Type of Paper - Review" |
| Keywords: | Coal mining, Disruption, Risk mitigation, Supply chain resilience, Systematic literature review |
| JEL: | M00 L72 M11 O13 |
| Date: | 2024–03–31 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:jber242&r=ene |
| By: | Mr. Christian Bogmans; Mr. Andrea Pescatori; Ivan Petrella; Ervin Prifti; Martin Stuermer |
| Abstract: | This paper establishes supply and demand elasticities for a broad set of commodities based on a consistent dataset and identification methodology. We apply granular IV methods to a new cross-country panel dataset of commodity production and consumption from 1960-2021. The results indicate that commodity demand and supply are typically price inelastic. Demand and supply tend to be the most inelastic for minerals, whereas they are most elastic for agricultural commodities. The elasticities of energy commodities fall somewhere in between. Supply and demand become more elastic at longer time horizons for mineral and energy commodities, but not for most agricultural commodities. |
| Keywords: | Commodities; international trade; price elasticities; demand; supply; energy; agriculture; minerals; metals. |
| Date: | 2024–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2024/077&r=ene |
| By: | Gruener, Sven; Angelova, Denitsa |
| Abstract: | Climate activism encompasses movements that intentionally utilize legal and/or illegal forms of protest to raise awareness of the causes and consequences of climate change, calling upon society to take action. |
| Date: | 2024–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:2keq4&r=ene |
| By: | Cristofer H. Marques; Paula Carvalho Pereda; Ramiro F. Ramos; Olav Fiksdahl; Luiz F. Assis; Newton N. Pereira; Andrea Lucchesi; Jean-David Caprace |
| Abstract: | To reduce greenhouse gas emissions from transport, the International Maritime Organization has been studying measures to be implemented in the short term. The present work presents an assessment of cost and environmental outcomes from the implementation of mandatory reductions of speed on the world merchant ship fleet. Considering the product usually transported by each group and the distance navigated between ports, average values of capital, operational, voyage expenditure and CO2 emissions are calculated. Results reveal that capital and operational expenditure increase with speed reduction while voyage expenditure and CO2 emission decrease. The effect is different for each region and ship type, whereby a given speed reduction is more beneficial for some than for others. Higher speed reductions were found to be environmentally beneficial but significantly increased the annual seaborne transport cost, which would likely affect ocean-going commerce. |
| Keywords: | shipping; GHG emissions; environmental effect |
| JEL: | L91 L92 |
| Date: | 2024–04–17 |
| URL: | http://d.repec.org/n?u=RePEc:spa:wpaper:2024wpecon15&r=ene |
| By: | Sieber, Niklas; Krail, Michael; Hölzemann, Charlotte |
| Abstract: | Baden-Württemberg verfolgt das Ziel, seine verkehrsbedingten CO2-Emissionen bis 2030 um 55 % gegenüber 1990 zu senken. Zur Erreichung dieses Ziels ist eine Vielzahl von verkehrlichen Maßnahmen denkbar, unter denen vom Ministerium für Verkehr Baden-Württemberg (VM) drei identifiziert wurden, für die ein besonderer Forschungsbedarf besteht und die in dieser Studie besondere Beachtung finden sollen: 1. Benutzervorteile für die Elektromobilität, 2. Parkraummanagement und 3. Mobilitätspass als Maßnahme zum massiven ÖPNV-Ausbau. Die Literaturstudie basiert auf einer intensiven Recherche von nationalen und internationalen Veröffentlichungen, grauer Literatur und Projektdokumenten zu dem Thema. Bei der Studie wurden über 300 relevante Quellen gefunden und ausgewertet. |
| Keywords: | Klimawirkungen von verkehrlichen Maßnahmen, ÖPNV-Ausbau, Benutzervorteile für Elektromobilität, Parkraummanagement, Mobilitätspass, Maßnahmen zur Reduktion von CO2 Emissionen im Verkehr, Klimaschutz im Verkehr, Literaturstudie Klimaschutz im Verkehr |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:290394&r=ene |
| By: | Gasparini, Matteo; Ives, Matthew C.; Carr, Ben; Fry, Sophie; Beinhocker, Eric |
| Abstract: | Investments via the financial system are essential for fostering the green transition. However, the role of existing financial regulations in influencing investment decisions is understudied. Here we analyse data from the European Banking Authority to show that existing financial accounting frameworks might inadvertently be creating disincentives for investments in low-carbon assets. We find that differences in the provision coverage ratio indicate that banks must account for nearly double the loan loss provisions for lending to low-carbon sectors as compared with high-carbon sectors. This bias is probably the result of basing risk estimates on historical data. We show that the average historical financial risk of the oil and gas sector has been consistently estimated to be lower than that of renewable energy. These results indicate that this bias could be present in other model-based regulations, such as capital requirements, and possibly impact the ability of banks to fund green investments. |
| JEL: | N0 R14 J01 |
| Date: | 2024–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122630&r=ene |
| By: | Daniel Davi-Arderius; Tooraj Jamasb; Juan Rosellon |
| Keywords: | Renewables, decarbonisation, generation mix, redispatching, renewable curtailment, synchronous generators, day-ahead market, network constraints, gas crisis, system operator, smart grids, digitalisation |
| JEL: | L51 L94 Q41 Q42 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:enp:wpaper:eprg2403&r=ene |
| By: | Talan B. İşcan; Benjamin Dennis |
| Abstract: | Targeted financing of transition to a "net zero" global economy entails climate transition risk. We propose a measure of transition risk at the country-sector dyad level composed of five tiers of transition risk based on two factors: i) the gap between a dyad's existing emission factor (EF) - a measure of the greenhouse gas intensity of output – and the global 'frontier' sectoral EF, and ii) a dyad's recent convergence towards the frontier EF. Dyads that are either close to the frontier or converging towards the frontier carry lower transition risk. Our measure, using 45 sectors across 66 countries, accounts for both direct greenhouse gas emissions as well as those that enter into production through complex supply chains as captured by intercountry, input-output tables, and can be applied at different levels of stringency to high-, middle-, and low-income economies. Our measure thus accounts for, and sheds light on, EF reductions through investment in lower emissions production techniques in own facilities as well as sourcing intermediate inputs with lower embodied emissions. |
| Keywords: | Transition risk; Greenhouse gas emissions; Direct emissions; Production emissions; Convergence |
| JEL: | E16 G10 Q54 |
| Date: | 2024–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedgfe:2024-17&r=ene |
| By: | Rim Berahab |
| Abstract: | The Carbon Border Adjustment Mechanism (CBAM) has emerged as an important policy tool in the European Union's (EU) efforts to combat climate change and prevent carbon leakage. By putting a price on carbon emissions embedded in certain goods imported into the EU, the CBAM has the potential to impact economies worldwide, including Morocco. This policy brief examines recent CBAM developments and assesses their implications for Morocco's economy and climate change efforts. It analyzes the challenges that the Moroccan economy may face, including implications for costs, competitiveness, compliance requirements, supply chain adjustments, and increased risk exposure. The brief also highlights the opportunities available to Morocco, and the importance of implementing targeted policies, strengthening the regulatory framework, promoting capacity-building initiatives, and fostering cooperation to navigate the CBAM transition period effectively. By understanding the complexities of CBAM and adopting proactive strategies, Morocco can position itself to capitalize on the opportunities and overcome the challenges presented by this transformative policy. |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb29-23&r=ene |
| By: | Pessey, Snowdein |
| Abstract: | Inflation continues to be a canker the world over, but is more pronounced in The Least Developed Countries like Ghana. Having identified petroleum products as a key inflation driver in Ghana, and petroleum taxes in a deregulated petroleum regime as a potentially significant driver of inflation in the wake of a hyperinflation period, this study was necessitated. This study uses the Chow Test and Gregory Hanson Structural Cointegration Test to find the significance of petroleum pricing regimes on Inflation. It also adopts the ARDL approach in analyzing the role of petroleum prices in general price levels. It goes further by using a Test for Proportions to find the significance of petroleum taxes in petroleum prices, having determined the significance of petroleum prices in inflation. The findings inform policymakers to pursue petroleum deregulation but find the right balance between revenue generation via inelastic products like petroleum products and inflation control through the exaction of the right and sufficient taxes. This study confirms existing knowledge of the relationship between inflation and petroleum products, and the insignificance of petroleum deregulation policy on inflation. It goes further to add new knowledge of the significance of petroleum taxes as a proportion of petroleum prices and inflation. |
| Keywords: | Petroleum Deregulation Policy, Inflation, Petroleum Taxation Policy. |
| JEL: | E31 H21 L95 |
| Date: | 2023–10–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120313&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:aak:wpaper:24/004&r=ene |
| By: | Buccella, Domenico; Fanti, Luciano; Gori, Luca |
| Abstract: | The Corporate Social Responsibility (CSR) theory of the firm states that, in strategic markets, social actions lead to a prisoner's dilemma. This paper develops a model with pollution externalities and environmental taxation to incentivise firms' abatement activities through green R&D investments. When the firms' objective function embed environmental issues (Environmental CSR, ECSR), a large spectrum of Nash equilibria emerges, from the Pareto inefficient to the Pareto efficient (ECSR, ECSR), depending on social concern and product differentiation degree. The time (in)consistency policy affects the endogenous market structure of the ECSR decision game more than in the standard CSR without abatement and taxation. |
| Keywords: | Abatement, Corporate Social Responsibility, Duopoly, Emissions |
| JEL: | H23 L13 M14 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:glodps:1421&r=ene |
| By: | Peter Nilsson; Matthew Tarduno; Sebastian Tebbe; J. Peter Nilsson |
| Abstract: | We provide a framework for setting congestion charges that reflect emission and congestion externalities and policy responses, such as vehicle ownership, driving, and residential sorting. Using Swedish administrative microdata, we identify these responses by exploiting a temporary exemption for alternative fuel vehicles and variation in individuals’ exposure to congestion charges. We find that commuters respond by adopting exempted alternative fuel vehicles, shifting trips away from fossil fuel toward alternative fuel vehicles, and changing where they live and work. We combine the estimated responses with the framework to recover an optimal congestion charge of €9.46 per crossing in Stockholm. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11038&r=ene |
| By: | Sabrine Emran |
| Abstract: | In the face of oil production cuts by Saudi Arabia and some OPEC members, the energy supply is shrinking again. This is in response to fears of an impending recession, higher inventories in some key countries, and an attempt to keep prices at a certain level. Turning to renewables is now essential to reduce dependence and increase resilience to energy insecurity, while non-renewable energy sources continue to show signs of unpredictability and harmful dependence. Economic outlooks vary from country to country. However, the link between energy demand and economic forecasts is stronger than ever. In this policy brief, we look at recent crude oil supply cuts, recession concerns and the outlook for renewable energy markets. In response to the different economic outlooks, a clear distinction is made between developing and developed countries, resulting in an energy demand that is more likely to come from countries such as China and India than from the major developed countries. |
| Date: | 2023–05 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb22-23&r=ene |
| By: | Reza Hafezi; David A. Wood; Firouzeh Rosa Taghikhah |
| Abstract: | Climate change and environmental concerns represent a global crisis accompanied by significant economic challenges. Regular international conferences held to address these issues, such as in the UK (2021) and Egypt (2022), spark debate about the effectiveness and practicality of international commitments. This study examines international treaties from a different perspective, emphasizing the need to understand the power dynamics and stakeholder interests that delay logical actions to mitigate anthropogenic contributions to climate change and their impacts. Environmental and social concerns tend to increase within nations as their economies develop, where they fight to keep acceptable standards of living while reducing emissions volume. So, nations play disproportionate roles in global decision-making based on the size of their economies. Addressing climate change requires a paradigm shift to emphasize acknowledging and adhering to global commitments through civil pressure, rather than relying on traditional yet biased systems of international political diplomacy. Here, climate-friendly actions are evaluated and ideas to promote such activities are proposed. We introduce a "transition regime" as a solution to this metastasis challenge which gradually infects all nations. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.07574&r=ene |
| By: | Léo Coppens; Simon Dietz; Frank Venmans |
| Abstract: | Integrated assessment models (IAMs) provide key inputs to decision-makers on economically efficient climate policies, and technical change is one of the key assumptions in any IAM that estimates mitigation costs. We conduct a systematic survey of how technical change is currently represented in the main IAMs and find that a diversity of approaches continues to exist. This makes it important to conduct an up-to-date assessment of what difference technical change makes to IAM results. Here we attempt such an assessment, using an analytical IAM with a reduced-form representation of technical change, which we can calibrate on the relationship between abatement costs and the timing of abatement in 109 IAM scenarios from two major databases. We first show in theory how a range of technical-change mechanisms can be adequately captured in a reduced-form model, in which the key difference is whether technical change is a function of time, i.e., exogenous, or cumulative past emissions abatement, i.e., endogenous. We then derive analytical and quantitative results on the effect of technical change on optimal climate policy, for both cost-benefit and cost-effectiveness policy problems. Under cost-benefit analysis, technical change has a quantitatively large, negative effect on long-run emissions and temperatures. The effect on carbon prices differs markedly depending on whether technical change is exogenous or endogenous, and whether clean technology deployment is incentivised by carbon prices or a dedicated deployment subsidy. Under cost-effectiveness analysis, technical change has a small effect on transient emissions and temperatures, but it has a large, negative effect on carbon prices almost irrespective of the policy instruments available. We make several practical recommendations for how IAMs can better incorporate TC, particularly when facing computational constraints. |
| Keywords: | climate change, cost-benefit analysis, induced innovation, integrated assessment models, technical change |
| JEL: | C61 O30 Q54 Q55 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11059&r=ene |
| By: | Falcão, Tatiana |
| Abstract: | These are the draft articles of the Multilateral Carbon Tax Treaty (MCTT). It is the product of the many comments received from the commentators invited to provide inputs to the MCTT. The MCTT comprises 31 articles that together establish an obligation on contracting states to tax carbon contained in fossil fuel ore or one of its byproducts, at the level of extraction. If the country entitled to tax at the level of extraction chooses not to exercise its right to tax, it allows first the country of refining or processing, and second, the country of consumption, under a secondary and tertiary allocation of rights. The MCTT identifies a minimum carbon tax, but not a ceiling. It provides for different tax rate schedules according to the country’s level of development and following the principle of common but differentiated responsibilities. This is an environmental agreement that uses a tax instrument (a carbon tax) to assist countries in meeting the mitigation objective contained in the nationally determined contributions, as set forth in the Paris Agreement. In other words, it is an environmental agreement that enables countries to use a tax instrument to quantify and reduce carbon dioxide emissions in furtherance of the climate commitments assumed under the Paris Agreement. |
| Keywords: | Climate Change, Development Policy, Environment, Politics and Power, |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:idq:ictduk:18294&r=ene |
| By: | Rabi Mohtar |
| Abstract: | It is estimated that $1 trillion to $6 trillion per year (up to 2050) needs to be invested globally if the world is to stay below the 2°C global warming ceiling of the Paris Agreement and to meet its adaptation goals. Currently, investments stand at about $630 billion per year, way below the original target. And although great efforts have been made in the climate-finance area, more than 70% of the funds deployed have gone to one sector, renewable energy, followed by the transportation sector. The agriculture sector has been severely underfunded, even though it produces 20% of global greenhouse gas emissions. This leaves the most vulnerable communities at risk as the effects of climate change are already impacting this sector intensely. In this policy brief, four principles are proposed as a foundation when deploying funds into climate-change mitigation and adaptation projects: equity, creativity, impact, and transparency. Climate finance has an enormous potential to make bigger impacts when the right principles are applied. |
| Date: | 2023–04 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb20-23&r=ene |