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on Energy Economics |
| By: | Gasteiger, Emanuel; Kuhn, Michael; Mistlbacher, Matthias; Prettner, Klaus |
| Abstract: | While automation technologies replace workers in ever more tasks, robots, 3D printers, and AI-based applications require substantial amounts of electricity. This raises concerns regarding the feasibility of the energy transition towards mitigating climate change. How does automation interact with conventional capital in driving energy demand and how do taxes on robots and taxes on electricity affect the adoption of robots and AI? To answer these questions, we generalize a standard economic growth model with automation and electricity use. In addition, we augment the model with electricity taxes and robot taxes and show the mechanisms by which these taxes affect automation. We find that an electricity tax serves a similar purpose as a robot tax. However, a robot tax is much more difficult to implement from a practical perspective. |
| Keywords: | Automation; Robots; Growth; Electricity Use; Energy Taxes; Robot Taxes |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wus005:62095883&r=ene |
| By: | Karim Darban (University Hassan II [Casablanca]); Smail Kabbaj (UH2MC - Université Hassan II [Casablanca]); Mostafa El Jay (University Hassan II [Casablanca]) |
| Abstract: | This paper explores how AI can greatly enhance green marketing strategies by improving customer targeting, providing personalized recommendations, optimizing supply chains, and accurately forecasting market trends. And addresses the challenges associated with data quality, privacy concerns, biases in algorithms, and transparency issues that need to be overcome for responsible AI implementation. The paper suggests practical recommendations for policymakers to promote ethical and sustainable use of AI in green marketing. It emphasizes the importance of collaboration among businesses, policymakers, and researchers to ensure responsible AI adoption. |
| Keywords: | Digital marketing, Social-Media, Sustainability, AI Digital marketing Green marketing strategies Social-Media Sustainability, AI, Green marketing strategies |
| Date: | 2023–08–31 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04523586&r=ene |
| By: | Alexandre Kornelius; Jose Angelo Divino |
| Abstract: | Transition to renewable energy might affect sensitivity to different types of energy supply and demand shocks economy wide. This paper develops a DSGE model that features renewable energy production, stochastic growth, and external habit formation to tackle this issue. The model is estimated by Bayesian techniques for Brazil, a large country highly dependent on renewable sources with an energy matrix that may soon reflect other countries' matrices. We assess historical decompositions of energy supply and demand shocks, address measurement errors due to regulated energy prices, account for the sharp increase in volatility during the pandemic period, compute structural impulse response functions, and calculate price-elasticities of energy demand. Energy supply shocks are the major driving force of energy prices. Output growth variations are mostly explained by non-energy shocks. Nevertheless, energy shocks account for 4.6% of its fluctuations, decomposed in 2% to energy-price (supply) shocks and 1.3% to each residential and industrial consumption (demand) shocks. Price-elasticities for residential energy usage are -0.150%, -0.364%, and -0.459% after one, ve, and ten years, respectively. Accordingly, price increases would have a limited impact to refrain energy consumption in times of climate change and adverse shocks in renewable sources. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bcb:wpaper:592&r=ene |
| By: | Daiya Isogawa (Graduate School of Economics, Osaka Metropolitan University); Hiroshi Ohashi (Faculty of Economics, The University of Tokyo); Tokunari Anai (Tokyo Electric Power Company Holdings, Incorporated,) |
| Abstract: | Time-varying electricity prices is pivotal for efficient electricity demand management, particularly when supply is inflexible. Utilities often issue advance notices during peak demand periods to alert users of imminent price hikes. However, the extent to which such notices influence demand response (DR) effectiveness has been understudied, either theoretically or empirically. This paper investigates the impact of advance notifications periods on industrial responses to fluctuating electricity prices. It posits that for users with a lower rate of inter-temporal elasticity of substitution, DR efficacy wanes as advanced warnings of peak prices lead to more homogenized consumption patterns over time. Empirical evidence from an industrial DR program in Japan substantiates this theory. Furthermore, the paper explores the economic rationale behind utilities’ decisions to issue advance notices, despite their potential to lessen DR impact. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:tky:fseres:2024cf1226&r=ene |
| By: | Sievert, Maximiliane |
| Abstract: | Electrification is frequently said to foster women's development and contribute to a modernization of gender roles. Using Demographic and Health Survey data from rural areas in 22 Sub-Saharan countries collected between 1999 and 2014, this paper examines the role of electricity access in reducing Intimate Partner Violence (IPV). Women in households with electricity report significantly lower acceptance of IPV. This relationship is largely driven by endogeneity, though, and applying matching and region panel approaches cast doubts on the causality of electricity for changes in attitudes towards IPV. The paper also illustrates how inference for a large number of countries is hampered by a lack of local context and observable variation, i.e. the trade-off between internal and external validity in empirical research. |
| Keywords: | rural electrification, domestic violence, intimate partner violence, region fixed effects, propensity score matching |
| JEL: | J12 J16 O13 O18 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:293991&r=ene |
| By: | Fulton, Lewis; UC Davis ITS Hydrogen Study Team |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt97s439v1&r=ene |
| By: | Giacomo Battiston (University of Padova); Matteo Bizzarri (University of Naples Federico II and CSEF.); Riccardo Franceschin (Sabanci University) |
| Abstract: | The relationship between resource value and conflict in a territory is affected by the interest of powerful third parties, which could deter predators. By employing widely-used measures of resource value and geologic predictors of oil presence, as well as a measures of third party presence, we examine this relationship, providing evidence of non-monotonicity in countries exposed to a powerful third party. We show that conflict probability is nonmonotonic in the value of oil in a country, in areas under US military influence. As we show, US influence in the data proxies for a higher probability of intervention in case of conflict, which may deter predator conflict in countries with large resource value. |
| Keywords: | conflict, resource curse, third party, oil, intervention. |
| JEL: | F51 Q34 D74 P48 |
| Date: | 2024–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:701&r=ene |
| By: | MASUJIMA Yuki; SATO Yuki |
| Abstract: | This paper tries to investigate the driving factors of FX rates, focusing on the roles of sovereign credit risks and energy prices in the post-pandemic period. We find that the yen’s safe-haven status has weakened, and the European currencies became more sensitive to debt risks and fragile to uncertainty. The yen’s sensitivity to higher sovereign risks increased after the introduction of the yield curve control (YCC) policy implemented by the Bank of Japan (BOJ), even if its policy could have reduced the volatility of Japan’s credit default swap (CDS) rates. Moreover, the type of shock (supply or demand) may change the impacts of oil prices on FX moves. Our results hint at the policy implication that the government’s fiscal policy stance is important not only for sovereign risk premiums but for exchange rate movement. The BOJ’s YCC could unintentionally limit some sovereign risks, but it may cause a rapid depreciation of the home currency when debt sustainability becomes more doubtful. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:24054&r=ene |
| By: | Jin-Young MOON, Jin-Young MOON (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Seung Kwon NA, Seung Kwon NA (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); LEE, Sunghee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); KIM, Eunmi (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | The international community faces two major challenges: securing stable energy supplies and achieving carbon neutrality. Concerns about energy security that aroused due to the oil crises in the 1970s are no longer limited to the stable supply of fossil fuels. The concept of energy security is changing in line with the need for transition from fossil fuels to clean energy. As energy prices have soared due to the recent Russia-Ukraine war, major countries are actively pursuing related policies and external cooperation to diversify their energy supply chain and decarbonize their economic structures. In order to appropriately respond to these challenges, continuous efforts are needed to gradually reduce the use of fossil fuels and in crease the use of clean energy in the medium to long-term. In particular, as the proportion of power generation from variable renewable energy sources increases, maintaining the stability of the power grid becomes a more important task. Demand for minerals essential for clean energy related technologies is expected to increase, however, production of these minerals is concentrated in specific countries. Major concerns related to carbon neutrality or clean energy investment include whether sufficient investment is being made, whether funds are being directed to countries or sectors in urgent need of financial support, and how to induce private investment through public funds. Accordingly, our study analyzed energy security from the perspective of energy transition, and derived key issues and notable cases of international cooperation to ensure energy security and carbon neutrality. Based on our findings, we suggested policy implications for Korea. |
| Keywords: | Energy Security; Carbon Neutrality; Energy Transition |
| Date: | 2024–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2024_010&r=ene |
| By: | Magacho, Guilherme; Godin, Antoine; Spinola, Danilo; Yilmaz, Devrin |
| Abstract: | Inclusion of developing and emerging countries in the low carbon transition agenda is imperative to meet climate goals, and policies should be tailored to their unique characteristics. Despite their significance, the structural specifics of these countries are frequently overlooked in lowcarbon transition models. In an effort to establish an appropriate framework for such analyses, this article formulates a Structural StockFlow Consistent (Structural SFC)model designed for open developing economies. This model categorizes production into three sectors: resource based exports, non-tradable goods and services, and other tradable sectors. While SFC models play a crucial role in emphasizing financial constraints, they frequently lack a multi-sectoral viewpoint and disregard structural specificities. Our model makes a dual contribution: (1) it offers a flexible framework capable of accommodating diverse country characteristics while balancing short-term demand with long term structural strategies, and (2) it underscores the inadequacy of relying solely on carbon pricing for economies deeply rooted in carbon-intensive sectors. By incorporating structurally distinct sectors within a genuinely monetary framework, the model enables us to comprehend the decisive role played by financial constraints arising from structural rigidities in shaping the dynamics of the low-carbon transition. Our findings show that the efficacy of carbon pricing is contingent on a country’s commercial, financial, and productionstructure. Inclusion of developing and emerging countries in the low carbon transition agenda is imperative to meet climate goals, and policies should be tailored to their unique characteristics. Despite their significance, the structural specifics of these countries are frequently overlooked in lowcarbon transition models. In an effort to establish an appropriate framework for such analyses, this article formulates a Structural StockFlow Consistent (Structural SFC)model designed for open developing economies. This model categorizes production into three sectors: resource based exports, non-tradable goods and services, and other tradable sectors. While SFC models play a crucial role in emphasizing financial constraints, they frequently lack a multi-sectoral viewpoint and disregard structural specificities. Our model makes a dual contribution: (1) it offers a flexible framework capable of accommodating diverse country characteristics while balancing short-term demand with long term structural strategies, and (2) it underscores the inadequacy of relying solely on carbon pricing for economies deeply rooted in carbon-intensive sectors. By incorporating structurally distinct sectors within a genuinely monetary framework, the model enables us to comprehend the decisive role played by financial constraints arising from structural rigidities in shaping the dynamics of the low-carbon transition. Our findings show that the efficacy of carbon pricing is contingent on a country’s commercial, financial, and productionstructure. |
| Keywords: | Low-carbon transition; Stock-Flow Consistent Model; Developing and emerging countries; Structural Change; Industrialisation |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:akf:cafewp:15459&r=ene |
| By: | Fujii, Hidemichi; Webb, Jeremy; Mundree, Sagadevan; Rowlings, David; Grace, Peter; Wilson, Clevo; Managi, Shunsuke |
| Abstract: | Voluntary carbon offset markets play an important role in climate change mitigation by deploying technologies in order of lowest abatement cost. The objective of this study is to identify the key drivers of changes in the volume of carbon credits issued in voluntary registry offset markets from 2006 to 2020 using a decomposition analysis framework. The results show that the volume of issued carbon credits related to forestry and land use increased from 2006 to 2015 due to priority increases and scale expansions in REDD+ projects. In addition, the reasons for the priority changes in carbon credits issued varied according to the scale of carbon offset programs in each region. The comparison of scale effect and carbon offset program priority is a useful tool for understanding changes in carbon credits issued according to project technology and region. The very rapid increase in forestry carbon credits issued does however pose important policy implications given it has been accompanied by widespread indications of poor governance and questionable outcomes in terms of CO2 reduction. In light of the IPCC’s reliance on carbon credits the need for thoroughgoing policy reform is underlined. |
| Keywords: | voluntary registry offset market; carbon credit; decomposition analysis |
| JEL: | Q54 Q57 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120657&r=ene |
| By: | Felix Kubler (University of Zurich) |
| Abstract: | This paper examines constrained optimal carbon pricing in a general equilibrium model with incomplete asset markets. A carbon policy consists of state-dependent carbon taxes and a sharing rule for tax revenue recycling. The social cost of carbon (SCC) is defined as the present value of the future marginal costs of additional CO2 emissions, discounted at (personalized) prices. For the case of complete markets, we state simple, sufficient conditions that ensure that setting carbon taxes equal to the SCC results in a Pareto-efficient competitive equilibrium. When markets are incomplete, constrained Pareto-efficient carbon taxes generically differ from the SCC. To examine the potential quantitative importance of these differences, we consider an Aiyagari [1994]-style model with a climate change externality. We prove that (i) the SCC cannot be estimated from aggregate damage functions and market prices alone, and (ii) the deviations of constrained optimal carbon taxes from the SCC can be arbitrarily large. |
| Keywords: | climate change, financial frictions, heterogeneous agents, carbon taxes, environmental policy, integrated assessment models |
| JEL: | C61 D52 D62 Q51 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2427&r=ene |
| By: | Heinz Welsch (University of Oldenburg, Department of Economics) |
| Abstract: | Carbon pricing is on the rise, as evidenced, for example, by the European Commission’s proposal to extend the trade in carbon emissions to the building and transport sectors. An important feature of carbon pricing is that it generates revenues which can be rebated to households. Rebating the revenues from household sector carbon pricing on an equal-per-capita basis or recycling of revenues to those most affected economically can compensate inequitable impacts, which is expected to increase support for carbon mitigation. This paper addresses carbon pricing and the rebating of carbon pricing revenues from the perspective of their impacts on subjective well-being (SWB). Against the background of pertinent findings in well-being research the paper argues that the rebating of revenues from carbon pricing in the household sector may not be able to compensate the negative effects of carbon pricing on SWB. Referring to research on how energy affordability on the one hand and income on the other affect SWB, it is suggested that the net SWB effect of household sector carbon pricing and equal-per-capita rebating of revenues may be strictly negative. This is not only problematic per se, but all the more so because drops in SWB have been found to be strong predictors of populist voting, which poses a serious threat to carbon mitigation policy. |
| Keywords: | carbon pricing; rebating; energy affordability; subjective well-being; populist voting |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:old:dpaper:444&r=ene |
| By: | Jiansong Xu |
| Abstract: | Carbon pricing, including carbon tax and cap-and-trade, is usually seen as an effective policy tool for mitigating emissions. Although such policies are often perceived as worsening affordability issues, earlier studies find insignificant or deflationary effects of carbon pricing. We verify this result for the food sector by using provincial-level data on food CPI from Canada. By using a staggered difference-in-difference (DiD) approach, we show that the deflationary effects of carbon pricing on food do exist. Additionally, such effects are weak at first and grow stronger after two years of implementation. However, the overall magnitudes are too small to make carbon pricing blamable for the current high inflation. Our subsequent analysis suggests a reduction in consumption is likely to be the cause of deflation. Contrarily, carbon pricing has little impact on farm production costs owing to the special treatment farmers receive within carbon pricing systems. This paper decomposes the long-term influence Canadian carbon pricing has on food affordability and its possible mechanisms. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.09467&r=ene |
| By: | Teresa Lackner; Luca E. Fierro; Patrick Mellacher |
| Abstract: | The paper introduces an integrated approach, blending Opinion Dynamics with a Macroeconomic Agent-Based Model (OD-MABM). It aims to explore the co-evolution of climate change mitigation policy and public support. The OD-MABM links a novel opinion dynamics model that is calibrated for European countries using panel survey data to the Dystopian Schumpeter meeting Keynes model (DSK). Opinion dynamics regarding stringent climate policy arise from complex interactions among social, political, economic and climate systems where a household's opinion is affected by individual economic conditions, perception of climate change, industry-led (mis-)information and social influence. We examine 133 policy pathways in the EU, integrating various carbon tax schemes and revenue recycling mechanisms. Our findings reveal that while effective carbon tax policies initially lead to a decline in public support due to substantial macroeconomic transition costs, they concurrently drive a positive social tipping point in the future. This shift stems from the evolving economic and political influence associated with the fossil fuel-based industry, gradually diminishing as the transition unfolds. Second, hybrid revenue recycling strategies that combine green subsidies with climate dividends successfully address this intertemporal tradeoff, broadening public support right from the introduction of the carbon tax. |
| Keywords: | Climate change, mitigation policy, opinion dynamics, agent-based models, transition risks |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2024/11&r=ene |
| By: | Carlo Jaeger (Global Climate Forum (GCF)); Jonas Teitge (Global Climate Forum (GCF)); Jan-Erik Thie (Macroeconomic Policy Institute (IMK) and Global Climate Forum (GCF)); Antje Trauboth (Global Climate Forum (GCF)) |
| Abstract: | Long after the debates about tertiarisation and post-industrial society, deindustrialisation is a hot topic again. An important example is the future of the German car industry. Some people believe that the forces of climate policy and digitalisation will lead to a smooth shift from selling internal combustion cars to battery electric ones. We show that things are much more difficult by distinguishing three different futures. First, a pink scenario of global industrial expansion based on electric cars and renewable electricity (1), then, a black scenario of a shrinking market for German cars and a global car fleet far from reaching climate neutrality by 2050 (2), finally a green scenario where carbon neutral self-driving robotaxis and shuttles on demand help realise the goals of the Paris accord and where the German car industry embraces digitalisation to sell mobility as a service, bridging the divide between private and public transport (3). Moreover, the pattern of incremental innovations the German innovation system is locked in is a problem. Germany needs to renew the creative capacity it had when the invention of the automobile planted the seed of the German car industry. This will require patient research able to analyse and foster an unprecedented economic transition. We explain and propose the multisectoral approach to economic dynamics developed at the interface of mathematics and economics by John von Neumann because it offers an adequate starting point for this indispensable effort. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:wpaper:221-2023&r=ene |
| By: | OECD; Orsetta Causa; Maxime Nguyen; Emilia Soldani |
| Abstract: | Greening the economy entails jobs contracting in “high-polluting” economic activities and expanding in environment-friendly activities. Minimizing the corresponding transition costs is crucial to accelerate decarbonisation and reduce displacement costs for affected workers. Using individual-level labour force data for a large sample of European countries, this paper finds that the shares of green and high-polluting jobs remained approximately stable between 2009 and 2019, hinting at a slow or yet-to-come green transition in labour markets. Green and high-polluting jobs are unequally distributed across socioeconomic groups: women are under-represented in both green and high-polluting jobs, while green jobs are associated with higher educational attainment, and high-polluting jobs with lower educational attainment. Equally important from a policy perspective, the results show that high-polluting jobs are concentrated in rural areas. These results are confirmed by analyzing labour market transitions: for instance, while women are more likely to transition from study to job, they are significantly less likely to get a green job. Overall, the results suggest that well designed and targeted policies are needed to support efficient and inclusive labour market transitions in the greening economy: to minimize scarring effects for displaced workers, help individuals’ upskilling and reskilling, and support the matching between workers and jobs in higher demand. |
| Keywords: | green transition, labour markets, policy analysis |
| JEL: | H23 I3 Q41 Q48 H12 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1796-en&r=ene |
| By: | Ashutosh Yadav (Patna, Bihar, India); Bright Akwasi Gyamfi (Udaipur, Rajasthan, India); Simplice A. Asongu (Johannesburg, South Africa); Deepak Kumar Behera (Patna, Bihar, India) |
| Abstract: | In the context of sustainable development, this study investigates the intricate dynamics among good governance, renewable energy investment, and green finance in BRICS nations. The aim of the study is to assess how green finance and governance effectiveness moderate the impact of renewable energy investment on CO2 emissions. Utilizing the Cross-Sectional Autoregressive Distributed Lag (CS-ARDL) model, a meticulous analysis spanning two decades was conducted to unravel the relationships among key variables and CO2 emissions. The findings underscore a nuanced interplay where renewable energy investments, synergized with robust governance and strategic green finance, significantly mitigate CO2 emissions, contributing to sustainable economic development. However, the study reveals non-linear relationships, highlighting the necessity for optimal allocation and strategic planning to maximize environmental benefits. In the short-run, a government effectiveness policy threshold that should be attained in order for renewable energy investment to reduce CO2 emissions is provided. In the long-run, the negative responsiveness of CO2 emissions to renewable energy investment is further consolidated by green finance. Moreover, enhancing renewable energy investment in the long run is positive for environmental sustainability. It follows that policy makers should tailor policies aimed at enhancing renewable energy investment in the long-run as well as complementing renewable energy investment with green finance in the long-run in order to ensure environmental sustainability by means of reducing CO2 emissions. Policymakers in BRICS nations are urged to strengthen governance structures, promote renewable energy investments, leverage green finance, foster public-private partnerships, adopt a holistic approach, and address non-linear effects to accelerate the transition to a low-carbon economy. |
| Keywords: | Sustainable Development, Governance, Renewable Energy Investment, BRICS and CS-ARDL |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/015&r=ene |
| By: | Zhang, Bing (Nanjing University); Liu, Mengdi (University of International Business and Economics) |
| Abstract: | To cope with the stricter environmental regulation, manufacturing firms need to carry out pollution reduction activities and change their optimal production decisions, which may affect their labor demand. Using a ten-year firm-level panel dataset (1998-2007), we use an estimation technique pairing propensity score matching (PSM) with a difference-in-differences (DID) estimator to examine the impacts of a national air pollution control policy on employment in China. We find that China’s Key Cities for Air Pollution Control (KCAPC) policy effectively lowered sulfur dioxide (SO2) emissions by approximately 26%. The new environmental regulation significantly reduced manufacturing labor demand by approximately 3%. Most importantly, firms reduce pollution emission mainly by upgrading production technology so the decline in labor is partly due to the increase in labor productivity brought about by technological progress. As a result of pollution reduction, low-skilled employees, female employees, and workers in domestic manufacturing firms are more affected by environmental regulation in China. |
| Keywords: | Labor demand; Environmental regulation; Air pollution control; Manufacturing firm; China |
| JEL: | Q56 |
| Date: | 2024–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2024_004&r=ene |
| By: | Victor Cardenas |
| Abstract: | The document provides an overview of financial climate risks. It delves into how climate change impacts the global financial system, distinguishing between physical risks (such as extreme weather events) and transition risks (stemming from policy changes and economic transitions towards low carbon technologies). The paper underlines the complexity of accurately defining financial climate risk, citing the integration of climate science with financial risk analysis as a significant challenge. The paper highlights the pivotal role of microfinance institutions (MFIs) in addressing financial climate risk, especially for populations vulnerable to climate change. The document emphasizes the importance of updating risk management practices within MFIs to explicitly include climate risk assessments and suggests leveraging technology to improve these practices. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.07331&r=ene |
| By: | Kristoffersson, Ida (Swedish National Road and Transport Research Institute (VTI)); Pyddoke, Roger (Swedish National Road and Transport Research Institute (VTI)); Kristofersson, Filip (Swedish National Road and Transport Research Institute (VTI)); Algers, Staffan (TPmod) |
| Abstract: | The policies for supplying charging infrastructure will be an important issue for the accel-eration of electrification of cars. In Sweden most early adopters of chargeable vehicles have been residents in detached houses. Residents in apartment buildings will be more dependent on public charging. This paper therefore examines how access to public charg-ing can affect the probability of buyers of new cars to choose a chargeable car. The main results indicate that the density of public charging stations close to home and work has a small but significant effect for buyers of private cars, as well as for buyers of other com-pany cars. We cannot however show any effect for the acquisition of Benefit In-Kind (BIK) company cars, but this could be due to incomplete data on charging access at the workplace. The socio-economic control variables are household income, having more than one car in the household, residence in a detached house, and that the owners of the apart-ment building received a grant for installing charging infrastructure close to the apartment building. These variables all have strong effects in the model. In the models of company cars, type of industry has strong effects for some industries. |
| Keywords: | Car type choice; Discrete choice modelling; Electric vehicle adoption; Electrification and decarbonization of transport; Revealed preference; Charging infrastructure |
| JEL: | H54 R42 |
| Date: | 2024–04–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:vtiwps:2024_004&r=ene |
| By: | Gao, Zhenyu (Chinese University of Hong Kong); Luo, Yan (Fudan University); Tian, Shu (Asian Development Bank); Yang, Hao (Fudan University) |
| Abstract: | Based on Alibaba’s renowned “green” initiative, the Ant Forest program, we develop a novel measure to reveal an individual investor’s nonpecuniary green preference and link it to an individual’s investment actions. We present compelling evidence that supports nonfinancial incentives for investing in green mutual funds while divesting from “brown” funds. Concerns over climate physical and regulatory risks further reinforce this influence. Individuals’ green preferences do not lead to financial gains from trading. Moreover, we mitigate the endogeneity issue by employing the development of a local subway network as a source of variations in green preferences. |
| Keywords: | nonpecuniary preference; revealed preference; sustainable finance; FinTech |
| JEL: | G11 G50 Q55 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbewp:0722&r=ene |
| By: | Vesa Pursiainen (University of St. Gallen; Swiss Finance Institute); Meichen Qian (University of Chicago Booth School of Business); Dragon Yongjun Tang (The University of Hong Kong - Faculty of Business and Economics) |
| Abstract: | We study the role of environmental commitments by technology entrepreneurs in their reward-based crowdfunding campaigns. Technology projects with public environmental commitments are significantly less likely to receive funding, but this varies depending on local climate opinions and political views. Backers in areas less concerned about climate change and more Republican areas are significantly less likely to fund campaigns with environmental commitments. The negative relationship between campaign outcomes and environmental commitments is stronger in cases where such commitments might be assumed more costly, suggesting that at least some backers interpret there to be a trade-off between sustainability and other product features. |
| Keywords: | Sustainability, entrepreneurship, crowdfunding, environmental attitudes |
| JEL: | G11 M13 Q55 Q56 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2425&r=ene |
| By: | Irene Monasterolo (Utrecht University and SUERF.); Antonia Pacelli (Toulouse School of Economics and INRAE); Marco Pagano (University of Naples Federico II, CSEF, EIEF, and CEPR.); Carmine Russo (University of Naples Federico II) |
| Abstract: | The European Union faces a large climate investment gap. To fill it, we propose the joint issuance of EU climate bonds. These bonds would be funded by the sale of emission allowances, traded on the EU Emissions Trading System and extended to cover all sectors. Access to the resulting funds would be conditional on countries’ performance on the implementation of climate investments. EU climate bonds would meet global demand for a safe and liquid asset, while increasing the speed and efficiency of EU climate investing, its resilience to sovereign crises, and the greening of investors’ portfolios and monetary policy. |
| Keywords: | climate finance, green investment, EU safe asset, emission allowances, ETS. |
| JEL: | D62 E61 H23 H27 P18 Q51 Q52 Q53 Q54 Q58 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:702&r=ene |
| By: | Helgeson, Broghan (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The paper at hand offers a quantitative assessment of the transformation of the European energy system in achieving the goal of the European Commission of carbon neutrality in Europe by 2050. In doing so, the investment and dispatch optimization model DIMENSION is extended to comprise a greater number of sectors and technologies as well as endogeneous links between energy supply and demand for 28 countries in Europe up to 2050. The model is applied to examine the costminimal decarbonization pathway for two cenarios with varying spatial boundaries of the optimization, namely the Green Island Europe and Green Importer Europe scenarios: Whereas the consumption of green hydrogen and/or synthetic fuels in the Green Island Europe scenario requires an investment in the necessary power-to-x production and electricity generating capacities within Europe, the Green Importer Europe scenario allows for such zero-carbon and carbon-neutral fuels to be available for purchase from outside of Europe. Results of the cost minimization in both scenarios show that the model chooses to most rapidly decarbonize the electricity sector, with capacities of wind and solar electricity generation in Europe tripling between 2019 and 2030. Simultaneously, a 500 TWhel increase in electricity demand is observed as 77% of heat generation in Europe is supplied by electricity-consuming heating technologies in 2030. By 2050, flexibility options such as electricity storage, demand-side management and electric vehicles expand their market presence, while the more hard-to-abate sectors such as transport and industry experience a rapid shift from fossil fuels to biofuels as well as to green hydrogen. As a result, the cross-sectional European CO2 shadow price rises to 225 €/CO2 in 2040 and to 559 €/tCO2 in 2050. In the Green Island Europe scenario, carbon neutrality in an energy-independent Europe leads to an overall increase in electricity consumption in Europe of over 4000 TWhel between 2019 and 2050. Yet the long-term results of the two scenarios diverge as the emergence of a demand for green hydrogen leads to a diversification of Europe’s hydrogen supply, with approximately 300 TWhth of green hydrogen (19% of total consumption) imported from outside of Europe in 2050. In turn, the 250 TWhth decrease in domestic green hydrogen production leads to a ramping down of electrolysis systems in the Green Importer Europe scenario, creating an opportunity for other flexibility options. Finally, the difference in average consumer and producer surplus as well average total welfare between the scenarios is examined for players in the European electricity and green hydrogen markets. |
| Keywords: | Energy system modeling; Flexibility options; Electricity sector; Power-to-X; Green hydrogen; Synthetic fuels; Green fuels; Sector coupling; Decarbonization; Carbon neutrality; Energy independence; Security of supply; Welfare analysis |
| JEL: | C61 C68 D61 N70 Q41 Q42 Q48 |
| Date: | 2024–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:ris:ewikln:2024_002&r=ene |
| By: | Javier Andrés; José Emilio Boscá; Rafael Doménech; Javier Ferri |
| Abstract: | We evaluate the welfare and macroeconomic implications of three distinct strategies aimed at reducing carbon emissions, which could be categorized within the diverse landscape of ideas encompassed by the degrowth literature. These strategies include penalizing fossil fuel demand, substituting aggregate consumption with leisure, and curbing consumption by limiting total factor productivity growth. Using an environmental dynamic general equilibrium model (eDGE) that incorporates both green renewable technologies and fossil fuels in the production process, our study sets an emissions reduction target aligned with the goals of the Paris Agreement by 2050. The results reveal that the strategies analyzed, which most closely align with the strictest interpretations of degrowth—namely, a reduction in the consumption of goods and services compensated by an increase in leisure, or strong impediments against conventional economic growth—may entail significant economic consequences, leading to a notable decline in welfare. In particular, a degrowth scenario aimed at curbing consumption through a decline in Total Factor Productivity (TFP) yields the most pronounced reduction in welfare. Conversely, inducing a reduction in fossil fuel demand by increasing the price of fossil fuels through taxes, despite potential social backlash, shows noticeably less detrimental effects on welfare compared to other degrowth policies. Furthermore, under this degrowth strategy, our findings suggest that a globally coordinated strategy could result in long-term welfare gain. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:fda:fdaddt:2024-04&r=ene |
| By: | Maria Tsouri; Ron Boschma; ; |
| Abstract: | Studies show that local capabilities contribute to the green transition, yet little attention has been devoted to the role of scientific capabilities. The paper assesses the importance of local scientific capabilities and the inflow of scientific knowledge from elsewhere for the ability of regions in Europe to diversify into photovoltaic (PV) segments during the period 1998 to 2015, employing a combined dataset on patents and scientific publications. We find that local scientific capabilities matter, but not so much the inflow of relevant scientific knowledge from other regions, as proxied by scientific citations of patents in PV segments. Regions are also likely to diversify into a PV segment when they have technological capabilities related to other PV segments. Finally, we found that European regions are less likely to lose an existing PV segment specialization when they have intra-regional and extra-regional scientific capabilities in this PV segment. |
| Keywords: | relatedness, photovoltaic technologies, green diversification, regional diversification, scientific capabilities, related scientific capabilities, inter-regional linkages, Europe |
| JEL: | O25 O38 R11 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2410&r=ene |
| By: | Adel Ben Youssef (GREDEG - Groupe de Recherche en Droit, Economie et Gestion - UNS - Université Nice Sophia Antipolis (1965 - 2019) - CNRS - Centre National de la Recherche Scientifique - UniCA - Université Côte d'Azur); Mounir Dahmani (Université de Gafsa) |
| Abstract: | This study examines the complex relation among environmental taxes, productive capacities, urbanization, and their collective effects on environmental quality in Africa, drawing on two decades of data from twenty African countries. It situates the study within the broader discourse on sustainable development and economic growth, emphasizing the Environmental Kuznets Curve (EKC) framework to examine the relationship between economic development, characterized by urban expansion and increased productive capacities, and the adoption of environmental taxes amidst the continent's diverse economic and environmental environments. Using advanced econometric techniques, including the Cross-Section Augmented Autoregressive Distributed Lag (CS-ARDL) model and the Dynamic Common Correlated Effects Mean Group (DCCEMG) estimator, the study addresses data challenges such as cross-sectional dependence and slope heterogeneity. The results provide important insights into the dynamics of environmental quality in relation to economic and urban growth and the role of environmental taxation. The study proposes tailored policy strategies aimed at strengthening sustainable development initiatives in line with international agreements such as the Paris Agreement and the Sustainable Development Goals. These strategies advocate for a nuanced application of environmental taxes and the promotion of productive capacities to enhance environmental sustainability across the African continent. |
| Keywords: | environmental taxes, productive capacities, urbanization, environmental quality, CS-ARDL, DCCEMG, AMG |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04527172&r=ene |
| By: | Felix Frischmuth; Mattis Berghoff; Martin Braun; Philipp Haertel |
| Abstract: | Climate neutrality paradigms put electricity systems at the core of a clean energy supply. At the same time, indirect electrification, with a potential uptake of hydrogen or derived fuel economy, plays a crucial role in decarbonising the energy supply and industrial processes. Besides energy markets coordinating the transition, climate and energy policy targets require fundamental changes and expansions in the energy transmission, import, distribution, and storage infrastructures. While existing studies identify relevant demands for hydrogen, critical decisions involve imports versus domestic fuel production and investments in new or repurposing existing pipeline and storage infrastructure. Linking the pan-European energy system planning model SCOPE SD with the multiperiod European gas market model IMAGINE, the case study analysis and its transformation pathway results indicate extensive network development of hydrogen infrastructure, including expansion beyond refurbished methane infrastructure. However, the ranges of future hydrogen storage costs and market uptake restrictions expose and quantify the uncertainty of its role in Europes transformation. The study finds that rapidly planning the construction of hydrogen storage and pipeline infrastructure is crucial to achieving the required capacity by 2050. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.12974&r=ene |
| By: | Sebastian Dullien (Macroeconomic Policy Institute (IMK)); Tom Bauermann (Macroeconomic Policy Institute (IMK)); Alexander Herzog-Stein (Macroeconomic Policy Institute (IMK)); Katja Rietzler (Macroeconomic Policy Institute (IMK)); Sabine Stephan (Macroeconomic Policy Institute (IMK)); Silke Tober (Macroeconomic Policy Institute (IMK)); Andrew Watt (Macroeconomic Policy Institute (IMK)) |
| Abstract: | Die Energie- und Nahrungsmittelpreisschübe stellen einen massiven Schock für die Wirtschaft dar. Er zeigte sich am deutlichsten im rapiden Anstieg der Inflation auf das 70-Jahres-Hoch von 10, 4 % im Verlauf von 2022. Bei einem Terms-of-Trade-Schock ist eine etwas expansivere Wirtschaftspolitik sinnvoll, da die gedämpfte gesamtwirtschaftliche Nachfrage eine Unterauslastung der Kapazitäten bewirkt. Die Energiepreisbremsen stabilisieren die Nachfrage, erhalten den erforderlichen Sparanreiz und wirken zugleich als automatische Stabilisatoren. Die Zinserhöhungen der EZB an der Schwelle zur Rezession waren angesichts bisher moderater Lohnsteigerungen überzogen. Sie erhöhen das Risiko einer tiefen Rezession und von Marktturbulenzen. Die Maßnahmen der Bundesregierung wirken insgesamt zwar stabilisierend, sollten aber verteilungspolitisch nachgebessert werden. Der Energieverbrauch dürfte auch im Winter reduziert bleiben. Mittelfristig muss der Weg für eine klimaneutrale Produktion geebnet werden, insbesondere mit erneuerbaren Energien. Die EU sollte zügig den CO2-Grenzausgleichsmechanismus umsetzen, um zu verhindern, dass Unternehmen ihre energieintensive Produktion ins Ausland verlagern. Die Verlängerung des erleichterten Zugangs zu Kurzarbeit und grundsätzlich auch das Bürgergeld sind zu begrüßen. Eine gesetzliche Erleichterung der Allgemeinverbindlicherklärung von Tarifverträgen wäre in der aktuellen Krise ein wichtiges Signal. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:report:179-2023&r=ene |
| By: | OECD; Orsetta Causa; Maxime Nguyen; Emilia Soldani |
| Abstract: | This paper develops a novel classification of high-polluting occupations for a large sample of European countries. Unlike previous efforts in the literature, the classification exploits country-level data on air polluting emission intensity by industry. The country-level data allows to capture important cross-country differences, due to differences in technology and in production focus. Applying the new classification to European Labour Force Survey data shows that, on average across the countries covered, about 4% of workers are employed in high-polluting jobs, ranging from 9% in Czechia and the Slovak Republic to around 2% in Austria. These shares do not exhibit any clear decreasing trend over the past decade. High-polluting jobs are unequally distributed, being over-represented among men, workers with lower and medium educational attainment and those living in rural areas. |
| Keywords: | air polluting emissions, classification, climate change, green transition, high-polluting jobs, labour markets |
| JEL: | J21 Q51 Q53 Q56 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1795-en&r=ene |
| By: | Li, Zhi (Xiamen University); Zhang, Da (Tsinghua University); Zhang, Xiliang (Tsinghua University) |
| Abstract: | With a unique opportunity of recruiting hundreds of emissions trading system (ETS) participants in a series of lab-in-the-field experiments, we compare a revenue-neutral consignment auction (CA) with free allocation (grandfathering, GF hereafter) and a uniform price auction (UPA) as alternative permit allocation designs. In our setup, firms first receive their permits for free. Then, under the two auction mechanisms, they need to buy back a share of the permits, either with auction revenues returned to the firms in the primary market (CA) or not returned (UPA), followed by a spot (secondary) market for all mechanisms with the continuous double auction. We find that enforced permit transactions in the primary market induce a higher price, facilitating price discovery with lower volatility and more effective trading in the spot market. Both auctions reduce non-compliance compared with GF, because the auctions reduce both permit hoarding and risky over-selling in the spot market. Both CA and UPA help smaller polluting firms lower their profit risks. CA also helps large, cleaner firms increase profits. Our results provide insights on permit allocation designs when introducing an ETS, especially for developing countries that are pondering the balance between market efficiency and firms’ cost burden. |
| Keywords: | emissions trading; consignment auction; uniform price auction; grandfathering; spot market; price collar |
| JEL: | C92 D44 Q52 Q54 Q58 |
| Date: | 2022–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2022_010&r=ene |
| By: | Gebrehiwot , Tagel (Ethiopian Climate Research Center, Policy Studies Institute, Addis Ababa, Ethiopia); Hassen, Sied (World Bank, Washington, DC) |
| Abstract: | In this paper, we investigate the impact of electricity on household food consumption and the nutritional status of children under the age of five, with attention to female-headed households, and discuss possible channels of causation. Using three rounds of the World Bank’s Living Standard Measurement Survey and a Difference in Difference approach, we found that access to electricity increased households’ calorie consumption by 153 Kcal per day in 2013 and by 187 Kcal in 2016. Further, children in households with access to electricity are less stunted than children in households without access to electricity. The findings imply that the channel of causation may be related to the greater convenience of electricity as a cooking fuel compared to firewood or other biomass. In terms of policy, expansion of electricity, in addition to providing lighting and other end use services, has an impact in improving households’ calorie intake and reducing children’s stunted growth. |
| Keywords: | electricity; energy; nutrition; wasting; stunting |
| JEL: | D10 D12 Q40 |
| Date: | 2022–06–23 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2022_011&r=ene |
| By: | Valentin Winkler |
| Abstract: | This study uses a structural vector autoregressive (SVAR) model to examine the relationships between the intensity of drilling (i.e. investment) for natural gas production, natural gas withdrawals, economic activity and natural gas prices in the United States. The results show that the reaction of drilling to an unexpected change in natural gas prices depends on the source of the price change. Specifically, I find that the reaction of drilling is significantly stronger after an economic activity shock than after a gas demand shock (e.g. due to oil price fluctuations). In addition, it is shown that demand-side factors were more important than supply-side factors in explaining the 85% drop in natural gas prices from June 2008 to April 2012. This contradicts prevailing explanations focused on shale gas development and should dampen the expectations of policy makers seeking to rapidly expand shale gas production in order to obtain similar cheap energy as the U.S. after 2008. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:wpaper:217-2023&r=ene |
| By: | Francois Geerolf |
| Abstract: | In a controversial policy paper, Bachmann et al. (2022) argued back in March 2022 that the economic effects for Germany of a complete immediate stop of energy imports from Russia would be small, between 0.5% and 3% of GDP. Baqaee et al. (2022) even presented 0.3% GDP loss in the case of an embargo as the headline number in a follow-up report for the French Council of Economic Analysis (CAE). This note argues that these estimates are both problematic from a scientific point of view, and also strongly biased towards finding small effects of a gas embargo: this is true of the (so-called) "Baqaee-Farhi approach" arriving at 0.2-0.3% of GDP, the "production function approach" arriving at 1.5% to 2.3% of GDP, as well as the "sufficient statistics approach" (also based on Baqaee-Farhi) arriving at 1% of GDP. This note argues that Olaf Scholz was correct in saying that the mathematical models which were used "don't really work" here, and tries to explain why. In any case, these models do not permit such categorical statements. |
| Keywords: | Energy, sanctions, economic models |
| JEL: | D2 E1 Q4 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:wpaper:218-2023&r=ene |
| By: | OECD; Alvaro Leandro |
| Abstract: | Australia has committed to achieving net zero greenhouse gas emissions by 2050 and more recently outlined a more ambitious intermediate target for emission reductions by 2030. However, achieving these targets will be challenging given a historical reliance on coal generation and the presence of significant mining and agriculture sectors. It will require a rapid transformation of the electricity grid, significant emissions reductions in highly-polluting sectors such as industry and agriculture, and sufficient offsets generated by “negative emissions” technologies and practices to counterbalance any emissions that cannot be fully eliminated. At the same time, Australia is particularly vulnerable to the physical impacts of climate change, as the driest inhabited continent on the planet with the majority of the population living on the coasts. Further significant reforms are required to meet the emission reduction goals, support the reallocation of workers and adapt to climate change. |
| Keywords: | agriculture, Australia, climate change mitigation, energy, transport |
| JEL: | H23 Q15 Q18 Q42 Q48 Q58 R48 |
| Date: | 2024–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1794-en&r=ene |
| By: | David Adler |
| Abstract: | In this working paper, the Congressional Budget Office provides an overview of CBO-ReEDS, an adapted version of the National Renewable Energy Laboratory’s Regional Energy Deployment System (NREL’s ReEDS) model for analyzing policies in the electric power sector. The paper discusses the strengths and limitations of the model and how CBO modifies it to align with the agency’s assessment of electricity demand, fuel prices, and technology costs. Finally, the paper provides projections of the effects of the 2022 reconciliation act (Public Law 117-169) on emissions of carbon |
| JEL: | Q47 Q48 Q54 Q58 |
| Date: | 2024–05–02 |
| URL: | http://d.repec.org/n?u=RePEc:cbo:wpaper:59880&r=ene |
| By: | Joshua S. Graff Zivin; Benjamin Krebs; Matthew J. Neidell |
| Abstract: | We study the private adoption and diffusion of a technology that provides a local public good – PurpleAir (PA) pollution monitors. From a purely informational perspective, the ideal spacing of these monitors should reflect the degree of spatial correlation in pollution. In stark contrast, we find that monitor adoption is spatially highly clustered in less polluted areas, suggesting the marginal monitor adopted provides minimal additional public information. Moreover, monitor adoption mainly occurs in affluent, predominantly white neighborhoods, underscoring the potential environmental justice concerns associated with the private provision of this public good. |
| JEL: | H41 Q53 Q55 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32356&r=ene |
| By: | Axelle Arquie (CEPII); Malte Thie (CEPII and Université Paris Dauphine) |
| Abstract: | We explore how, in the French manufacturing sector, producer prices vary with market power during a severe episode of energy price hikes (between January 2020 and February 2023). Our work provides some empirical evidence in favor of a role for firms' market power in explaining inflation, and in favor of the "sellers' inflation" hypothesis (Weber and Wasner (2023)): in less competitive sectors, firms could use the energy price hike to increase their prices more than warranted by actual changes in costs. Using a rich dataset on French manufacturing firms' balance sheets, we first estimate markups at the firm-level, and aggregate them at the sectoral level. We then study the response of the producer price index (PPI) to a change in spot energy prices, depending on average market power within sectors. We show that, in sectors with higher markups, prices increase relatively more: in the least competitive sector, firms pass through up to 110% of the energy shock, implying an excess pass-through of 10 percentage points. In addition, we find that the association between markup and pass-through is even higher when markup dispersion is low, consistent with the argument that firms engage in price hikes when they expect their competitors to do the same. |
| Keywords: | Inflation, Markups |
| JEL: | E31 F4 L11 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:wpaper:220-2023&r=ene |
| By: | Maria Cotofan; Karlygash Kuralbayeva; Konstantinos Matakos |
| Abstract: | This study examines how regional temperature variations across OECD countries influence political behavior and support for offset policies. Our analysis reveals that exposure to higher temperatures correlates with political moderation, reduced backing for extreme and populist parties, heightened climate concerns, and increased support for environmentally conscious agendas. These effects are primarily driven by older individuals, who exhibit increased concerns about climate change and the economic costs of climate policies following temperature spikes. Moreover, they express support for policies aimed at mitigating these economic impacts. Conversely, younger individuals show less apprehension about the economic consequences of climate policies and demonstrate readiness to bear them, including through higher energy bills. These findings emphasize the necessity of accounting for age-related perspectives when formulating effective climate policies for the future. |
| Keywords: | preference formation, environmental policies, policy support, voting |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp1991&r=ene |
| By: | Böcking, Lars; Michaelis, Anne; Schäfermeier, Bastian; Baier, André; Kühl, Niklas; Körner, Marc-Fabian; Nolting, Lars |
| Keywords: | Generative Künstliche Intelligenz, GenAI, Energiewirtschaft, TenneT |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bayism:290410&r=ene |
| By: | Bergquist, Ann-Kristin (Department of Economic History, Uppsala University); David, Thomas (University of Lausanne) |
| Abstract: | This paper engages with the literature that has looked at the historical response to climate change among industries positioned to have had a far-reaching impact on changing the course of the climate crisis. While much of the historical research in this domain has focused on the role of big oil companies, the utility industry and conservative think tanks in the manufacturing of doubt regarding climate science and opposing ambitions climate policies, our focus is on the International Chamber of Commerce (ICC) – the world’s largest transnational business association. Unlike individual multinational corporations, the ICC developed a close ties and collaborations with the United Nations Environment Programme (UNEP), which made ICC positioned to influence international policy discussions. This study finds that the ICC developed a dual strategy, which set aside climate change as the focus for discussion and business action. One strategy, led by ICC Environment Committee, involved intense collaboration with the United Nations and developing a business agenda for sustainable development. At the same time, the creation of the International Panel of Climate Change (IPCC) in 1988 and the Intergovernmental Negotiating Committee for a Framework Convention on Climate Change (INC) in 1991, gave rise to a parallel strategy, led by ICC’s related oil companies. As this study finds, the ICC’s Energy Committee developed close ties to the Global Climate Coalition, a front group designed to combat the scientific evidence of climate change. The paper concludes that the ICC was able to delay meaningful regulatory response to climate change the between 1988-1992 by forming a broad coalition of competing interests and collaborating with agencies established under the auspices of the United Nations. |
| Keywords: | International Chamber of Commerce; United Nations; Climate Governance; Sustainability; Climate Delay |
| JEL: | N40 N50 N80 P18 |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:uuehwp:2024_015&r=ene |
| By: | Boris Chafwehe; Andrea Colciago; Romanos Priftis |
| Abstract: | This paper proposes a New Keynesian multi-sector industry model incorporating firm heterogeneity, entry, and exit dynamics, while considering energy production from both fossil fuels and renewables. We examine the impacts of a sustained fossil fuel price hike on sectoral size, labor productivity, and inflation. Final good sectors are ex-ante heterogeneous in terms of energy intensity in production. For this reason, a higher relative price of fossil resources affects their profitability asymmetrically. Further, it entails a substitution effect that leads to a greener mix of resources in the production of energy. As production costs rise, less efficient firms leave the market, while new entrants must display higher idiosyncratic productivity. While this process enhances average labor productivity, it also results in a lasting decrease in the entry of new firms. A central bank with a strong anti-inflationary stance can circumvent the energy price increase and mitigate its inflationary effects by curbing rising production costs while promoting sectoral reallocation. While this entails a higher impact cost in terms of output and lower average productivity, it leads to a faster recovery in business dynamism in the medium-term. |
| Keywords: | Energy; productivity; firm entry and exit; monetary policy |
| JEL: | E62 L16 O33 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:dnb:dnbwpp:811&r=ene |
| By: | Lee, Wang-Sheng (Monash University); Tran, Trang My (Monash University) |
| Abstract: | Environmental research related to military activities and warfare is sparse and fragmented by discipline. Although achieving military objectives will likely continue to trump any concerns related to the environment during active conflict, military training during peacetime has environmental consequences. This research aims to quantify how much pollution is emitted during regular military exercises which has implications for climate change. Focusing on major military training exercises conducted in Australia, we assess the impact of four international exercises held within a dedicated military training area on pollution levels. Leveraging high-frequency data, we employ a machine learning algorithm in conjunction with program evaluation techniques to estimate the effects of military training activities. Our main approach involves generating counterfactual predictions and utilizing a "prediction-error" framework to estimate treatment effects by comparing a treatment area to a control area. Our findings reveal that these exercises led to a notable increase in air pollution levels, potentially reaching up to 25% relative to mean levels during peak training hours. |
| Keywords: | machine learning, military emissions, military training, pollution |
| JEL: | C55 Q53 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16889&r=ene |
| By: | Elvis K. Ofori (Zhengzhou University, Henan, China); Simplice A. Asongu (Johannesburg, South Africa); Ernest B. Ali (Ural Federal University, Russia); Bright A. Gyamfi (Istanbul, Turkey.); Isaac Ahakwa (Hefei, China) |
| Abstract: | Since the industrial era, the selection of energy sources to facilitate economic advancement has been criticized because of the resulting ecological calamity. This has prompted the introduction of radical approaches such as ISO 14001, which tackles the drivers of pollution. Therefore, this study analyses the ISO 14001 - environment nexus from three distinct points of view BRICS, MINT, and G7 countries from 1999-2020. Also, our work fills an extant gap in assessing structural change and innovation's role in augmenting the relationship. The Driscoll and Kraay (DK) estimator is employed as an analytical tool for cross-sectional dependence and slope homogeneity, while the fixed effects approach provides sufficient robustness checks on the findings. While some outcomes vary per bloc, others are relatively similar across the three (3) blocs. That is: (1) ISO 14001 shows an abatement portfolio for only the G7 bloc, and the Full sample. (2) Structural change showed potential for abating carbon emissions in all blocs. (3) Technology led to an increase in Pollution in all blocs except for the MINT economy. (4) ICT in the form of mobile phones also help reduce carbon emissions in all three blocs except for their composite. (5) Renewable energy helps reduce carbon emission in all blocs except for G7. ISO 14001 shows the potential to encourage green growth. As a result, policymakers should work to enhance ISO 14001 certification, which might serve as a management tool to promote sustainable development. |
| Keywords: | ISO 14001, Sustainable development, Structural change, Technology, BRICSMINT, G7 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/014&r=ene |
| By: | Thea Kolasa (University of Zurich - Department Finance; Swiss Finance Institute); Zacharias Sautner (University of Zurich - Department of Finance; Swiss Finance Institute; European Corporate Governance Institute (ECGI)) |
| Abstract: | This article examines the role of institutional investors in the fight against climate change. We explain the institutional context, provide evidence highlighting institutional investors’ bright and dark sides in this fight, and develop multiple ideas for future research. We show that climate change has a significant impact on institutional investors. Simultaneously, we demonstrate that institutional investors can have a significant positive impact on fighting climate change, particularly if they actively engage with portfolio firms to reduce carbon emissions. For risk management reasons, this is in their own interest, and it is also in the interests of society. We highlight possible future research avenues on the link between institutional investors and climate change, emphasizing issues related to environmental, social, and governance (ESG) rating agencies, greenwashing, and the risk of a loss of trust in ESG products. Climate change constitutes one of the grand challenges of our time, and substantially more research on the role of finance is required. |
| Keywords: | institutional investors, climate change, climate risks, ESG ratings, greenwashing |
| JEL: | F34 G12 G32 M14 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2426&r=ene |