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on Energy Economics |
| By: | António Rua; Fátima Cardoso |
| Abstract: | climate and environmental policies aimed at promoting sustainable development and human well-being. The importance of reducing the carbon footprint has long been acknowledged and the European countries have been paving the way in this respect. In particular, we focus on Portugal where a striking reduction of carbon emissions has been observed in just a few years. We perform a structural decomposition analysis over the last two decades allowing to unveil the main drivers underlying the evolution of carbon emissions. We find that the investment on renewable energy sources, namely wind, has been key for a successful transition to a cleaner economy. The impact has been felt both on the reduction of carbon intensity as well as on the increase of energy efficiency in power generation. We also find that such benign evolution was partly counterbalanced by the increase of the contribution of final demand to carbon emissions despite being attenuated with the COVID-19 pandemic. These findings highlight the importance of the adoption of renewable energy sources to support a further mitigation of the carbon footprint in a context of economic growth. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ptu:wpaper:w202312&r=ene |
| By: | Kosuke Suzuki; Jens Matthias Arnold; Jean Chateau; Supatra Sripumphet; Wilailuk Poolee |
| Abstract: | This paper discusses Thailand’s green growth policy framework with a focus on finding the right policy mix and institutional setup. Given that the economy is in a process of catching up with advanced economies, particular emphasis will need to be placed on making the green transition conducive to economic growth and further improvements in living standards. Implementing Thailand’s current pledge to achieve carbon neutrality by 2050 and net zero emissions by 2065 will require substantial policy changes. While the expansion of natural gas use over the past years has helped Thailand to contain increases of carbon emissions, reversing the still rising emissions calls for a strong shift towards renewable energy sources. Thailand has already started these efforts. The use of biofuels has increased in road transport, and other renewable energy sources have also expanded. Investments into greener production technologies and a more responsible use of resources have received strong attention. However, most current initiatives are voluntary, which will not be sufficient to achieve the country’s climate goals. As Thailand is highly vulnerable to climate change risks, policies that promote adaptation to climate change will also play an important role. |
| Keywords: | carbon pricing, energy efficiency, green growth, green innovation, renewable energy sources, Thailand |
| JEL: | D58 H23 O38 O44 O53 Q48 Q58 |
| Date: | 2024–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1797-en&r=ene |
| By: | Hardman, Scott PhD; Chakraborty, Amrita PhD; Hoogland, Kelly; Sugihara, Claire |
| Abstract: | This project provides a literature review of research on zero emission vehicles (ZEVs) which includes fuel cell vehicles, battery electric vehicles, and plug-on hybrid electric vehicles, the latter are referred to as plug-in electric vehicles (PEV). In the review we focus on PEVs due to a lack of literature on fuel cell vehicles. We consider buyer and consumer perceptions of PEVs including perceived barriers to PEV adoption, consumer knowledge of PEVs, issues associated with incentives, and issues associated with infrastructure. The aim is to understand potential barriers to higher PEV sales and future research needs relating to PEV adoption. The PEV market shows many signs of becoming more robust. This includes PEV buyer demographics shifting toward the demographics of buyers of all types of new cars and improvements in PEV technology. Some challenges may remain, however. These include understanding the needs of households without home charging, engaging female car buyers in PEVs, engaging more of the general population in the PEV transition, substantially reducing PEV purchase prices, and incentive discontinuities potentially impacting adoption. Finally, disparities in rebate allocation, infrastructure deployment, and PEV sales indicate the transition is not yet equitable. This may require specific policy actions to address. |
| Keywords: | Engineering, Zero emission vehicles, plug-in hybrid vehicles, incentives, consumer behavior, demographics, electric vehicle charging, automobile ownership |
| Date: | 2022–12–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt8dt5b2q6&r=ene |
| By: | Li, Shuping; Meng, Jing; Hubacek, Klaus; Eskander, Shaikh M. S. U.; Li, Yuan; Chen, Peipei; Guan, Dabo |
| Abstract: | Many economies set climate mitigation targets for 2020 at the 2009 15th Conference of the Parties conference of the United Nations Framework Convention on Climate Change in Copenhagen. Yet no retrospective review of the implementation and actual mitigation associated with these targets has materialized. Here we track the national CO2 emissions from both territory and consumption (trade adjusted) perspectives to assess socioeconomic factors affecting changes in emissions. Among the 34 countries analysed, 12 failed to meet their targets (among them Portugal, Spain and Japan) and 7 achieved the target for territorial emissions, albeit with carbon leakage through international trade to meet domestic demand while increasing emissions in other countries. Key factors in meeting targets were intensity reduction of energy and the improvement of the energy mix. However, many countries efforts fell short of their latest nationally determined contributions. Timely tracking and review of mitigation efforts are critical for meeting the Paris Agreement targets. |
| Keywords: | 72373081; 72250710169; 72140001; 101137905 (PANTHEON) |
| JEL: | N0 |
| Date: | 2024–04–16 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122815&r=ene |
| By: | Pierre-Olivier Gourinchas (International Monetary Fund); Gregor Schwerhoff (International Monetary Fund); Antonio Spilimbergo (International Monetary Fund) |
| Abstract: | The green transition faces old and new challenges. Old challenges include insufficient domestic action and challenging international coordination. New challenges include the quest for energy security and the rising threat of geoeconomic fragmentation, the political backlash against climate policies, and a slowing growth prospect. At the same time, technological progress has been faster than expected. The success of the green transition depends on the outcome of the race between technological progress and rising inward-looking policies. Energy security and green transition are mutually reinforcing provided clear policy directions are given. The challenge is to pursue collaboration to exploit technological progress in a world at risk of fragmentation. |
| Keywords: | climate policy, energy security, innovation |
| JEL: | O38 Q43 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp24-4&r=ene |
| By: | Uribe, Adolfo (Universidad de Talca); Chávez, Carlos (Universidad de Talca); Gómez, Walter (Universidad de la Frontera); Jaime, Marcela (School of Management and Business, Universidad de Concepción); Bluffstone, Randy (Portland State University and EfD Initia) |
| Abstract: | We estimate the key private benefits from a program to improve ambient air quality during winter in central Chile by replacing inefficient wood-fired home heating stoves with more efficient pellet stoves. We are interested in the private benefits to households because they represent the additional value of the program and likely drive private adoption. Combining electronic stove surface temperature and air pollution monitoring with household surveys, we estimate the effects of adoption on household fuel expenditures, indoor temperatures, and indoor air pollution concentrations (PM2.5). We also explore heterogeneous effects of the program by income group and energy poverty status. Our results suggest that, after controlling for observable characteristics of individuals and dwellings, users of pellet stoves on average enjoy 14% lower indoor PM2.5 concentrations compared with those who have traditional stoves. Lower-income and energy-poor households receive much greater than average improvements in indoor air pollution than those with higher-incomes, driving the overall sample estimate and indicating that the program is progressive in this dimension. While those who use more efficient pellet stoves have more stable indoor temperatures than those using traditional stoves, we find no differences in mean temperatures. The improved heating stove has significantly higher operating costs, and we find that these costs are most salient for low-income and energy-poor households. |
| Keywords: | Air pollution; energy transition; environmental policies; household behavior; heating; stoves |
| JEL: | C21 Q48 Q52 Q55 Q58 |
| Date: | 2022–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2022_018&r=ene |
| By: | Tony Addison; Alan R. Roe |
| Abstract: | The extractives industries are highly controversial but remain vitally important in much of the developing world. This paper considers their role in reducing energy poverty and discusses scenarios for the future of the global markets for oil, gas, and metals (emphasizing the increasing importance of Asia). It then provides a snapshot of the increasing dependence of many developing countries on the extractives sector and uses that analysis to provide a perspective on the new opportunities arising from the global net-zero transition. |
| Keywords: | Climate, Commodities, Extractive industries, Mining, Natural gas, Oil |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-26&r=ene |
| By: | Emanuel Gasteiger (Institute for Mathematical Economics and Statistics, Vienna University of Technology); Michael Kuhn (International Institute for Applied Systems Analysis (IIASA)); Matthias Mistlbacher (Institute for Mathematical Economics and Statistics, Vienna University of Technology); Klaus Prettner (Department of Economics, Vienna University of Economics and Business) |
| 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 |
| JEL: | O11 O14 H21 H23 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp364&r=ene |
| By: | Inaki Veruete Villegas (Charles University, Institute of Economic Studies at Faculty of Social Sciences & The Environment Center, Czech Republic & BETA, CNRS, University of Strasbourg); Milan Scasny (Charles University, Institute of Economic Studies at Faculty of Social Sciences and The Environment Center, Czech Republic.) |
| Abstract: | The current geopolitical landscape, exemplified by the Russian invasion of Ukraine, has heightened concerns about energy security. This study delves into the nexus of energy security and natural gas utilization in the Czech Republic, offering a thorough analysis amid these turbulent times. Despite the fact that the environment/energy-extended input-output models have been significantly improved, they still fail to fully capture a sector’s role in an economic system characterized as a network of sectors as they primarily analyze sectors as both ends of the supply chain, ignoring a significant role of transmission sectors. We overcome this gap by applying a multidimensional approach to scrutinize the energy supply chain in order to assess the repercussions of heightened natural gas prices post-Russian invasion. Specifically, we combine domestic energy input-output demand and price models to assess the economic impacts under constrained alternative energy scenarios, particularly relevant given the challenges of replacing Russian gas. Additionally, leveraging network analysis techniques —node and edge betweenness centrality—and the hypothetical extraction method are used to identify critically important structural elements within the country’s natural gas consumption chain. While the former pinpoints vital transmission sectors based on gas flow, the latter gauges sectoral significance by simulating complete disconnections, without being influenced by the number of times the sector appears in the supply chain path. Last, we develop a complete map of the embodied energy flows. Structural Path Analysis traces intermediate product flows, enabling the quantification of embodied energy across the supply chain and its representation as a tree-like structure. Our findings reveal significant implications of natural gas price fluctuations on key manufacturing industries, notably those engaged in international trade which are vulnerable to energy supply and price disruptions. We emphasize the critical role of sectors providing essential household goods and services, like energy, food, and transportation. Strategic interventions may be necessary to safeguard domestic demand and the competitive edge of vital sectors like automotive. As energy security remains a dynamic and evolving challenge, our research contributes significantly to the ongoing discourse on energy resilience, particularly for countries dependent on energy imports. Despite the fact our study is applied to the energy field, this framework is useful to analyze the footprint of any inputs, including usage of critical materials, environmental inputs, or emissions, which face similar complexities. |
| Keywords: | Energy-Extended Input-Output Aanalysis; Energy Supply Chain; Natural Gas Footprint; Embodied Energy; Betwenness Centrality; Hypothetical Extraction; Structural Path Analysis; Input-Output Price Model |
| JEL: | C67 Q43 H56 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2024_19&r=ene |
| By: | Reinhilde Veugelers (Peterson Institute for International Economics) |
| Abstract: | This paper focuses on the innovation angle in green industrial policy design. The innovation system, delivering new and improved technology solutions for the clean energy transition, can be the cornerstone of a successful transition that reconciles decarbonization, competitive value creation and jobs, and strategic autonomy on a global scale. This, however, requires the innovation system to be properly directed. This paper first lays out the principles of a policy design that properly steers the innovation system. It then documents the current performance on clean energy innovations and clean energy policymaking globally, with focus on the Inflation Reduction Act (IRA) and the Net-Zero Industry Act (NZIA) trends in clean tech policymaking in the United States and European Union, respectively. The evidence shows that the innovation system is not at full potential, and there is still ample room to improve the current clean energy policymaking and international policy coordination. |
| Keywords: | climate change, clean tech, innovation, green innovation policy, strategic autonomy |
| JEL: | O31 O38 Q55 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp24-5&r=ene |
| By: | Gero Dasbach (University of Lille, France) |
| Abstract: | Gains from trade liberalization are accompanied by environmental externalities of increased greenhouse gas emissions. The EU is currently active on both trade and climate policy frontiers. By means of a new quantitative trade model, this study uncovers counterfactual changes in trade, CO2 emissions, and welfare of an EU-India FTA, first as a standalone policy, and then, in conjunction with the Carbon Border Adjustment Mechanism (CBAM). Trade data from the OECD Inter-Country Input-Output (ICIO) tables and CO2 emission data from the OECD Trade in Embodied CO2 (TECO2) database are used. While the CBAM decreases trade volumes and CO2 emissions, a hypothetical EU-India FTA results in significant increases in both trade and CO2 emissions. When considering the Armington assumption of national product differentiation and no intermediate goods, the welfare effects of the EU-India FTA alone are found to be negative for India. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bai:egeiwp:egei_wp-3_2024&r=ene |
| By: | Twerefou, Daniel Kwabena (University of Ghana); Abeney, Jacob Opantu (University of Ghana); Toman, Michael (World Bank); Turkson, Festus Ebo (University of Ghana); Baffour, Priscilla Twumasi (University of Ghana) |
| Abstract: | Demand-side management of energy consumption using energy efficiency improvements has the potential to reduce poverty in addition to reducing greenhouse emissions. However, very little is known about the impact of electrical energy consumption inefficiency on poverty. Using data from a household survey and the Ordinary Least Square estimation technique, we first assess the impact of household electricity consumption efficiency on multidimensional poverty using a stochastic energy demand frontier model. Next, we estimate the impact of electricity consumption efficiency on consumption poverty based on a probit model. The results show that a percentage increase in energy efficiency reduces multidimensional poverty by approximately 9.4 percentage points while for lower and upper consumption poverty, the probabilities reduce by approximately 10.2% and 14.3% respectively. Male-headed households are more likely to experience poverty than female-headed households. Multidimensional poverty is reduced more for risk-taking households than risk-averse ones. However, being risk-neutral is not enough to reduce the probability of household consumption poverty. Education in both cases is found to significantly reduce the probability of being poor. We recommend that government should encourage demand-side management of electricity through efficiency improvement options such as star ratings and appliance rebate systems and also increase awareness of energy efficiency as a way of addressing poverty. |
| Keywords: | Households; Electricity Consumption; Efficiency; Environment; Poverty |
| JEL: | I32 Q01 Q42 |
| Date: | 2023–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2023_011&r=ene |
| By: | John Hassler (Stockholm University); Per Krusell (Stockholm University); Conny Olovsson (Sveriges Riksbank) |
| Abstract: | This paper provides scientific starting points for climate-economy modeling. The sensitivity of climate change to emissions of greenhouse gases is uncertain. The same is true about the long-run economic consequences of climate change. Therefore, the authors argue that traditional cost-benefit analyses including calculations of optimal carbon taxes are, and will remain, unconvincing. Climate-economic models are nevertheless useful for finding effective climate policies that are robust to different assumptions about these uncertainties. This paper outlines such a model. A key result is that a transition to climate neutrality can be implemented at an acceptably low cost. The authors discuss the policies required for this transition, compare climate policies in the European Union and the United States, and provide suggestions for future research. |
| Keywords: | Climate-economic modeling, climate change, climate neutrality, emissions, climate transition |
| JEL: | Q54 E1 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp24-8&r=ene |
| By: | Tony Addison; Alan R. Roe |
| Abstract: | This paper analyses the risks facing resource-dependent countries. These include: (i) economic mismanagement (the 'resource curse'); (ii) political mismanagement; (iii) environmental damage (climate change and the destruction of natural capital). It distinguishes 'risk' (which can be addressed probabilistically) from 'uncertainty' (infrequent unpredictable events). Mozambique, with its large natural gas resource, provides examples of all the component risks and uncertainties. |
| Keywords: | Africa, Extractive industries, Debt crisis, Mining, Natural gas, Oil |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-27&r=ene |
| By: | Olivier de Groote (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Axel Gautier (HEC Liège, Université de Liège); Frank Verboven (Department of Economics [Leuven] - KU Leuven - Catholic University of Leuven = Katholieke Universiteit Leuven) |
| Abstract: | We analyze the political impact of a generous solar panel subsidization program. Subsidies far exceeded their social benefit and were partly financed by new taxes on adopters and by electricity surcharges for all consumers. We use local panel data from Belgium and find a decrease in votes for government parties in municipalities with high adoption rates. This shows that the voters' punishment for a costly policy exceeded the potential reward by adopters who received generous subsidies. Further analysis indicates that punishment mainly comes from non-adopters, who change their vote towards anti-establishment parties. |
| Keywords: | Photovoltaic systems, Retrospective voting, Financing climate policy |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04547811&r=ene |
| By: | Dagar, Vishal; Dagher, Leila; Rao, Amar; Doytch, Nadia; Kagzi, Muneza |
| Abstract: | Global energy security is a growing worldwide concern in the presence of high economic policy uncertainty (EPU) that can be addressed by advancing sustainable energy diversification (ED) practices. Energy security can be estimated by combining ED and EPU indices; hence, this study uses a dataset covering three continents and 26 countries from 1995 to 2023 to measure energy security employing this approach. The study employs quantile regression and panel data analysis, finding a positive relationship between EPU and ED. The results reveal that when EPU increases, the spectrum of energy sources declines, negatively impacting energy security. Other factors of globalization, Gross Domestic Product, gross capital formation, and the labor force also have an impact on the spectrum of energy sources. To obtain a sustainable level of ED, policymakers should increase investment in gross capital formation because economic growth and openness via pro-global policies have less impact on ED. This study also demonstrates that labor capital shifts have a significant effect on ED. The quantitative results reveal the importance of clear and precise economic policies for increasing investment in carbon-free energy security. |
| Keywords: | Economic Policy Uncertainty; Energy Security; Energy Diversification; Carbon Neutrality; Risk Mitigation. |
| JEL: | C23 G18 Q43 Q48 Q54 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120705&r=ene |
| By: | Carla Guerriero (Università di Napoli Federico II and CSEF); Antonia Pacelli (University of Naples Federico II, Naples School of Economics.) |
| Abstract: | This paper uses Italian data on industrial plant emissions over a 12 years period to assess the differential impact of negative shocks in the allocation of free allowances across various industrial sectors in the context of the EU Emission Trading Scheme (ETS). Specifically, it examines the consequences of reduced free allowances for certain sectors in contrast to those that maintain their existing allocation. By using a novel indicator of emission intensity based on quantity this study shows that the absence of free allowances does not directly impact the incentive to abate emissions but foster the entry of cleaner producers. The results offer evidence of regional heterogeneity by analysing the variations in policy effects between the South and the North of Italy. |
| Keywords: | Carbon pricing, free allowances, carbon leakage, emission intensity. |
| JEL: | D22 H23 Q54 Q58 |
| Date: | 2023–12–12 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:699&r=ene |
| By: | Julius Berger; Waldemar Marz |
| Abstract: | We identify and examine a novel welfare channel of fuel economy standards through the in-teraction with public transit and households’ location choices. A stricter emission standard for cars decreases the marginal cost of driving and triggers a shift in modal choice from public to private transport and a rise in carbon emissions. In the long run, the modal shift exacerbates the increase in the average commute length that results from lower driving costs, as well as traffic congestion. The annual welfare cost for a 50 percent emission reduction goal in a setting calibrated with U.S. data turns out 8 percent (equiv. to 54 USD p.c.) higher than when neglecting public transport. With a larger role of public transport as in Europe, this effect rises to 12 percent (equiv. to 83 USD p.c.). An alternative fuel tax policy, by contrast, induces a modal shift towards public transport and reduces the average commute, urban congestion and the welfare cost of emission reductions. |
| Keywords: | fuel economy standards, public transport, monocentric city, fuel tax, carbon emissions |
| JEL: | H23 Q48 R13 R48 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11061&r=ene |
| By: | Daniel de Wolf (TVES - Territoires, Villes, Environnement & Société - ULR 4477 - ULCO - Université du Littoral Côte d'Opale - Université de Lille); Ngagne Diop (TVES - Territoires, Villes, Environnement & Société - ULR 4477 - ULCO - Université du Littoral Côte d'Opale - Université de Lille); Moez Kilani (LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Abstract We extend a multimodal transport model to simulate an increase of the market share of electric vehicles. The model, which is described in detail in Kilani et al. (Sustainability 14(3):1535, 2022), covers the north of France and includes both urban and intercity trips. It is a multi-agents simulation based on the MATsim framework and calibrated on observed traffic flows. We find that the emissions of pollutant gases decrease in comparable proportion to the market share of the electric vehicles. When only users with shorter trips switch to electric vehicles, the impact is limited and demand for charging stations is small since most users will charge by night at home. When the government is able to target users with longer trips, the impact can be higher by more than a factor of two. But, in this case, our model shows that it is important to increase the number of charging stations with an optimized deployment for their accessibility. |
| Abstract: | Nous étendons un modèle de transport multimodal pour simuler une augmentation de la part de marché des véhicules électriques. Le modèle, décrit en détail dans Kilani et al. (Sustainability 14(3):1535, 2022), couvre le nord de la France et inclut les déplacements urbains et interurbains. Il s'agit d'une simulation multi-agents basée sur le framework MATsim et calibrée sur les flux de trafic observés. Nous constatons que les émissions de gaz polluants diminuent dans une proportion comparable à la part de marché des véhicules électriques. Lorsque seuls les utilisateurs effectuant des trajets plus courts passent aux véhicules électriques, l'impact est limité et la demande de bornes de recharge est faible puisque la plupart des utilisateurs rechargent la nuit à leur domicile. Lorsque le gouvernement est en mesure de cibler les utilisateurs effectuant des trajets plus longs, l'impact peut être plus d'un facteur deux. Mais, dans ce cas, notre modèle montre qu'il est important d'augmenter le nombre de bornes de recharge avec un déploiement optimisé pour leur accessibilité. |
| Keywords: | Transport modeling and simulation, Electric vehicles, Deployment of charging stations, Local pollution, North of France, Spatial distribution, Decision support, CO2 emissions |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04551704&r=ene |
| By: | Stefan Ambec (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Federico Esposito (Tufts University [Medford]); Antonia Pacelli (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - UT - Université de Toulouse - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, University of Naples Federico II = Università degli studi di Napoli Federico II) |
| Abstract: | In a trade model with endogenous emissions abatement, we investigate the impact of three policy instruments aimed at mitigating carbon leakage: free emission allowances, a Carbon Border Adjustment Mechanism (CBAM), and a CBAM with export rebates. We show that providing free allowances does not alter the incentives to abate carbon emissions, but, instead fosters the entry of more carbon intensive producers. This "levels the playing field" both domestically and internationally, and may even reverse carbon leakage. In contrast, a CBAM only levels the playing field domestically, and may lead to an autarky equilibrium. To reverse carbon leakage, a CBAM must be complemented with export rebates. We further show that a CBAM and export rebates improve welfare for any carbon price, and we identify the optimal share of free allowances with or without a CBAM. Finally, we perform a calibration exercise on cement and steel sectors to simulate the effects of the CBAM recently adopted by the European Union. Our model predicts a scenario with reverse carbon leakage and significant welfare gains for both sectors. |
| Keywords: | Carbon pricing, Trade, Carbon leakage, CBAM, Free allowances, Export rebates |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04550380&r=ene |
| By: | Stefan Raychev (Department of Economic Science, University of Plovdiv Paisii Hilendarski); Blaga Madzhurova (Department of Economic Science, University of Plovdiv Paisii Hilendarski); Dobrinka Stoyanova (Department of Economic Science, University of Plovdiv Paisii Hilendarski) |
| Abstract: | The offered study tackles the problem of whether a country can be synchronously rich and "green". The toolkit applied to resolve this dilemma, on the one hand, involves a review of theoretical sources on the issue, and on the other hand, necessitates a conduct of an empirical study of the dependencies between economic growth, and in particular GDP per capita and carbon dioxide emissions (CO2 ) per capita. This is an assessment method of the eventual impact of economic growth on environmental degradation. An evaluation of the theories indicates that a relationship exists between economic growth and environmental degradation, however it is multidimensional. The outcomes of the in-depth analysis of the relationship between economic prosperity and environmental sustainability, after applying correlation and regression analyses, along with the RANSAC regressor, actually reveal that there is a positive relationship between CO2 emissions and GDP per capita. The visualization of the results gives a clear idea of the relationship for each year of the research period. These findings contribute to the current debate concerning the balance between economic growth and environmental protection. |
| Keywords: | Green transition, GDP per capita, Economic growth, CO2 emissions per capita |
| JEL: | E01 O40 Q01 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:14116004&r=ene |
| By: | Anita Schiller; Aurelie Slechten |
| Abstract: | This study examines the effects of oil and gas extraction activities on the educational outcomes of high school students in Texas, focusing on potential variations in these impacts among different demographic groups. We use school-level data from the Texas Academic Performance Reports between 2012-2020, with school performance measured by average scores on the American College Test (ACT). The primary variable of interest is the exposure to oil and gas activities, measured by changes in oil and gas revenues within each school district. The empirical approach controls for school characteristics, and student demographics. To address endogeneity concerns, we adopt an instrumental variable approach. Although the overall impact of oil and gas operations on average school ACT scores is not statistically significant, these activities do influence the relationship between student socioeconomic status and academic achievement. Specifically, for schools situated within districts that receive substantial oil and gas revenues, a small increase in the proportion of economically disadvantaged students is associated with a substantial decline in ACT scores. |
| Keywords: | natural resources, oil and gas activities, human capital, education |
| JEL: | H75 I21 I24 R23 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:411897926&r=ene |
| By: | Kikstra, Jarmo S.; Li, Mengyu; Brockway, Paul E.; Hickel, Jason; Keysser, Lorenz; Malik, Arunima; Rogelj, Joeri; van Ruijven, Bas; Lenzen, Manfred |
| Abstract: | IPCC reports, to date, have not featured ambitious mitigation scenarios with degrowth in high-income regions. Here, using MESSAGEix-Australia, we create 51 emissions scenarios for Australia with near-term GDP growth going from +3%/year to rapid reductions (−5%/year) to explore how a traditional integrated assessment model (IAM) represents degrowth from an economic starting point, not just energy demand reduction. We find that stagnating GDP per capita reduces the mid-century need for upscaling solar and wind energy by about 40% compared to the SSP2 growth baseline, and limits future material needs for renewables. Still, solar and wind energy in 2030 is more than quadruple that of 2020. Faster reductions in energy demand may entail higher socio-cultural feasibility concerns, depending on the policies involved. Strong reductions in inequality reduce the risk of lowered access to decent living services. We discuss research needs and possible IAM extensions to improve post-growth and degrowth scenario modelling. |
| Keywords: | degrowth; Integrated assessment models; post-growth; NE/S007415/1; Discovery Project grants DP0985522; DP130101293; DP190102277; DP200103005 and DP200102585; s Large Infrastructure; Equipment and Facilities (LIEF) grant LE160100066; Discovery Early Career Researcher Award DE230101652; University of Sydney SOAR Prize; National eResearch Collaboration Tools and Resources project (NeCTAR; Fellowship award EP/R024254/1 |
| JEL: | N0 |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122721&r=ene |
| By: | Kacker, Kanishka (Indian Statistical Institute); Gupta, Ridhima (South Asian University); Ali , Saif (Indraprastha Institute of Information Technology) |
| Abstract: | Will reducing traffic congestion bring health benefits? We use high frequency data from Uber for Delhi – a city that experiences high levels of air pollution and traffic congestion - to answer this question. Exploiting information by time of day for every day of 2018 at the neighborhood level that covers over 16000 possible trips during each of these time periods, we employ an econometric framework that models wind direction together with day, month, time-of-day and trip fixed effects to remove important sources of unobserved heterogeneity. Congestion has a non-linear, dynamic impact on pollution raising it sharply by over a standard deviation. The pattern of response shown by the results is consistent with known information regarding vehicular emissions and ambient air pollution, suggesting bias in the estimates to be low. Simulations using parameters from epidemiological studies suggest congestion may be responsible for up to 40% of all premature deaths from pulmonary and heart disease in Delhi. |
| Keywords: | air pollution; traffic congestion; vehicular regulation |
| JEL: | L91 O18 Q53 R41 |
| Date: | 2023–07–03 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2023_010&r=ene |
| By: | Stephane Hallegatte (World Bank); Florent McIsaac (World Bank); Hasan Dudu (International Monetary Fund); Charl Jooste (World Bank); Camilla Knudsen (World Bank); Hans Beck (World Bank) |
| Abstract: | In 2022 the World Bank Group launched a new core diagnostic tool: the Country Climate and Development Report (CCDR). Published for 42 economies so far, CCDRs use resilient and low-emission development scenarios to identify synergies and tradeoffs between development and climate objectives. There are several modeling challenges associated with the analysis of the macroeconomic consequences of these development pathways, including those related to the nonmarginal nature of the required transformation, the role of technologies, and the replacement of fossil fuel-based assets with greener ones. To address some of these challenges, several CCDRs have used a hybrid modeling approach that combines a set of sectoral analyses with macroeconomic models. Specifically, sectoral techno-economic models are employed to construct resilient and low-emission development trajectories in key sectors. The macroeconomic implications of these sectoral transitions are then assessed by linking the sectoral models with two macroeconomic frameworks: a multisector general equilibrium framework and an aggregate macrostructural model. This hybrid approach combines the advantages of multiple tools and captures the various dimensions of the transition, including the need to tackle multiple market failures, beyond the emissions externality; analyze price and nonprice policies and their interactions; represent explicitly the replacement of assets and infrastructure; assess the macroeconomic feasibility of the sectoral transitions and the required investments. This paper uses the case of Turkey to describe the methodological approach and summarizes the results of the CCDRs that have been published to date. Findings suggest that, despite large investment needs, the transition can contribute positively to economic growth, especially when indirect mitigation benefits are taken into account, but only if structural challenges can be managed, climate and development policies are well designed, and negative impacts on some sectors or communities are mitigated. |
| Keywords: | Macroeconomic modeling; climate change; technological change |
| JEL: | E60 Q43 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp24-6&r=ene |
| By: | Chakraborty, Debapriya PhD; Konstantinou, Theodora PhD; Gutierrez Lopez, Julia Beatriz MSc; Tal, Gil |
| Abstract: | The primary metric for measuring electric vehicle (EV) adoption growth is new car sales. However, to enable mass market penetration, EV adoption in the used car market will play a crucial role. The used vehicle market is relatively under-studied or has been studied mostly for specific regions. This project analyzed US national consumer expenditure survey data that tracks households' expenditure on vehicle acquisition and operation. The study aim is to understand new versus used vehicle choice behavior and the consequent cost of vehicle ownership, with the larger aim of determining how much households who generally buy used vehicles can gain or lose if they transition from a used internal combustion engine vehicle (ICEV) to a used EV. A choice model and cluster analysis showed that ownership of used vehicles is influenced by family size, income, housing tenure, and age. For lower-income renters, current vehicle ownership and purchase costs tend to constitute a high fraction of their household income, raising concerns related to equity and suggesting that these households in particular should be considered in policies to encourage the EV transition. Moreover, while at present the average price paid for a used ICEV is approximately $18, 000, the price of a comparable used EV can range between $14, 000 (e.g., lower electric range Nissan Leaf) to $50, 000 (high-range Tesla), suggesting the need for incentives to encourage the used EV market. |
| Keywords: | Engineering, Electric vehicles, used vehicle industry, automobile ownership, households, choice models, operating costs |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3jh4f34x&r=ene |
| By: | Ahmed Kouider Aissa; Alessandro Tampieri |
| Abstract: | We investigate the interaction between consumers' environmental concern, environmental corporate social responsibility (ECSR), and environmental regulations during the transition towards sustainable production. We study an economy in which a subpopulation of consumers is sensitive to environmental issues. In this setting, we analyse the steady-state equilibrium in a framework à la Droste et al. (2002), where rms compete in quantities and decide whether or not to engage in ECSR activities, which ultimately reduce the impact of production on the environment. We nd that the variation of social welfare with the increase of ECSR rms is U-shaped, driven by the variation in consumer surplus, while environmental damage is minimised when all rms adopt ECSR practices. Therefore, the short-run social incentives to pursue a transition towards sustainable production are scarce. In contrast, there exists a private incentive to internalise emissions and to proliferate ECSR rms, as prots increase with the proportion of ECSR rms. |
| Keywords: | Mixed oligopoly markets, emission reduction investment, evolutionary dynamics |
| JEL: | C73 H23 L13 L21 M14 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_04.rdf&r=ene |
| By: | Jinchi Dong; Richard S. J. Tol; Fangzhi Wang |
| Abstract: | The majority of estimates of the social cost of carbon use preference parameters calibrated to data for North America and Europe. We here use representative data for attitudes to time and risk across the world. The social cost of carbon is substantially higher in the global north than in the south. The difference is more pronounced if we count people rather than countries. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.04989&r=ene |
| By: | Felix Bierbrauer (University of Cologne) |
| Abstract: | A uniform price for carbon is at the center of market-based approaches to climate policy. Actual climate policy, by contrast, has many sector-specific rules. This paper studies the desirability of the market-based approach using tools from the theory of taxation. It is found that a justification for the market-based approach can be given, it involves indifference with respect to the distributive consequences of climate policy, and it requires that a condition of proportional fiscal externalities is met. If these conditions are not met, a sector specific approach is preferable. |
| Keywords: | Climate policy, equity-efficiency trade-off, optimal taxation |
| JEL: | D63 H21 H22 Q58 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ajk:ajkdps:299&r=ene |
| By: | ANDRIANADY, Ravahiny Josué; RAZANAJATOVO, H. Yves; RAVELOMANANTSOA, M. Fabienne |
| Abstract: | This work employs the Autoregressive Distributed Lag (ARDL) approach to investigate the nexus between macroeconomic variables and inflation in Madagascar. The findings reveal significant impacts of various factors, including imports, GDP, exchange rates, and oil prices, on inflation dynamics. Specifically, the study highlights the substantial influence of oil prices, with a one-unit increase leading to a 9.21 unit rise in inflation. These results underscore the importance of implementing targeted policy measures to address the inflationary pressures arising from volatile oil markets. Strategies such as diversification of imports, energy source diversification, and improvements in public transportation infrastructure are recommended to mitigate the adverse effects of oil price fluctuations and promote economic stability in Madagascar. |
| Keywords: | Inflation, Madagascar, ARDL, Macroeconomic Variables, Oil Prices, Exchange rate, Imports |
| JEL: | A1 C0 C01 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120686&r=ene |
| By: | Wendt, Charlotte; Kosin, Dominick; Adam, Martin; Benlian, Alexander |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:144275&r=ene |
| By: | Stefan Raychev (University of Plovdiv Paisii Hilendarski); Dobrinka Stoyanova (University of Plovdiv Paisii Hilendarski); Blaga Madzhurova (University of Plovdiv Paisii Hilendarski) |
| Abstract: | The complex relationship between green transition and socio-economic factors implies a detailed and comprehensive analysis of the interdependencies between the indicators. The employment and unemployment variables will be particularly affected. Amounting research shows that the transformation to "green" jobs, if not supported by adequate policies, will put the labour market at risk. On the one hand, the need for new skills means higher public costs, and on the other hand, the drive to reduce carbon emissions, if not accompanied by unemployment control, will also put economic growth at risk. This implies a gradual transformation of the countries, which in turn requires updated social and fiscal pacts. Such countries must be adapted to the future, must tackle modern risk structure, must ensure the expansion of the scope of rights and urgently face the challenges of low productivity, social vulnerability and inequality, institutional weakness and technological and climate change. |
| Keywords: | Green transition, Labour market, Social-economic dimension, Unemployment, Growth, CO2 emissions |
| JEL: | E24 Q01 G28 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:14115973&r=ene |
| By: | Stefan Raychev (University of Plovdiv Paisii Hilendarski); Yuliyan Mollov (University of Plovdiv Paisii Hilendarski) |
| Abstract: | This article presents the cohesion policy in the EU and analyzes the role of decentralization for the sustainable development of the European regions at the NUTS 2 level. It examines the regional policy in the EU member states and its relationship with the decentralization and social progress of the regions. The study also covers sustainable urban development in Europe. Trends and effects of decentralization on economic growth and regional inequalities are discussed. A methodology based on statistical analysis is used to compare the social progress of European regions. A comprehensive approach is applied to reveal relationships and dependencies between indicators of a socio-economic nature within EU NUTS 2 level regions. In this sense, the methodology uses statistical software tools to reveal trends in the structural aspect of regional development and thus draw conclusions and recommendations for policies and measures aimed at increasing the effectiveness of fiscal regionalization. Incorporating principles of green economics into regional policy and decentralization efforts can drive the adoption of sustainable practices, such as renewable energy deployment, eco-friendly infrastructure development, and the promotion of green industries. The integration of green economic strategies within regional governance structures empowers regions to pursue environmentally conscious initiatives, contributing to the overall transition towards a low-carbon and resource-efficient economy. |
| Keywords: | Green transition, Region development, Social-progress index of regions, Decentralization, Cohesion, Sustainable development |
| JEL: | R11 Q01 R58 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:14115972&r=ene |
| By: | Puch González, Luis Antonio; Ruiz, Jesús |
| Abstract: | This paper investigates the asymmetrical effects of supply chain disruptions on oil prices and inflation. To this purpose, we identify anticipated (news) shocks associated to the global supply chain. Then we estimate the effects of these shocks on oil prices and inflation in the US. We allow 'escalating' (restrictive) and 'deescalating' (expansionary) supply chain news shocks tohave differing effect sizes. Our empirical findings reveal that anticipated supply chain disruptions exert a substantial and statistically significant influence on both oil prices and inflation. We uncover a significant asymmetry in these effects: 'escalating news' shocks exhibit a markedly stronger and more persistent impact compared to 'deescalating news' shocks. Consequently, the oil price is less sensitive to an alleviation of supply chain strain than to an exacerbation. Our results can be rationalized by a small open economy model which is used to assess the validity of our empirical approach. Furthermore, we demonstrate that the mechanisms governing thetransmission of supply chain news shocks in the model align closely with observed empirical patterns. Failing to account for this asymmetry could lead to misjudgments regarding the repercussions of supply chain pressures. |
| Keywords: | News shocks; Inflation; Oil prices; Supply chain disruption; Expectations |
| JEL: | E2 E6 E32 E44 Q42 Q43 Q58 |
| Date: | 2024–02–29 |
| URL: | http://d.repec.org/n?u=RePEc:cte:werepe:43758&r=ene |
| By: | Tommaso Oliviero (Università di Napoli Federico II and CSEF); Sandro Rondinella (University of Calabria.); Alberto Zazzaro (University of Naples Federico II, CSEF and MoFiR.) |
| Abstract: | Green investment by private companies is essential to sustainable growth paths in the advanced economies. Whether, and to what extent, investments by green firms are hampered by lack of external finance is an open question. Here we estimate the sensitivity of investment to internal finance in firms engaging in green innovation, finding that the elasticity of investment to cash flow is four times less for green than for non-green firms. This result is stronger among smaller firms and robust to alternative definitions of “green firms.” Our findings indicate that green firms are less financially constrained, consistent with the growing perception of the importance of the green transition, which potentially affects financial investors outside the company. |
| Keywords: | Green investment; cash flow; external finance; financial constraints. |
| JEL: | E22 G30 Q55 |
| Date: | 2024–02–23 |
| URL: | http://d.repec.org/n?u=RePEc:sef:csefwp:700&r=ene |
| By: | Tan-Soo, Jie-Sheng (Lee Kuan Yew School of Public Policy, National University of Singapore); Finkelstein, Eric (Duke-NUS Medical School, Singapore); Qin, Ping (School of Applied Economics, Renmin University of China); Jeuland, Marc (Sanford School of Public Policy, Duke University, USA); Pattanayak, Subhrendu (Sanford School of Public Policy, Duke University, USA); Zhang, Xiaobing (School of Economics, Renmin University of China) |
| Abstract: | Due to worsening air quality across many cities in developing countries, there is an urgent need to consider more aggressive air pollution control measures. Valuation of the benefits of clean air is crucial for establishing the rationale for such policies, but is methodologically challenging, often expensive, and therefore remains limited. This study assesses the potential for more standardized and cost-effective measurement of the demand for air quality improvements, applying a contingent valuation procedure via online surveys, in three Asian megacities facing severe but varying pollution problems – Beijing, Delhi, and Jakarta. The study’s primary contribution is to demonstrate the viability of this approach, which significantly enhances comparability of valuations and their drivers across locations, and thereby has great potential for informing policy analysis and targeting of specific interventions. A second contribution is to supply sorely needed data on the benefits of clean air in these three particular Asian cities, which collectively have a population of about 50 million people. The annual willingness-to-pay for air quality to reach national standards is estimated to be US$150 in Jakarta (where average PM2.5 concentration, at 45µg/m3, exceeds national standards by the smallest amount, specifically a factor of 1.3), US$1845 in Beijing (PM2.5 at 58µg/m3, 1.7 times the standard), and US$1760 in Delhi (PM2.5 at 133µg/m3, 3.3 times the standard). The methods deployed could be applied more widely to construct a worldwide database of comparable air quality valuations. |
| Keywords: | Low and middle-income countries; air pollution; contingent valuation |
| JEL: | D00 |
| Date: | 2023–05–30 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunefd:2023_008&r=ene |
| By: | Haroon Bhorat; Timothy Köhler |
| Abstract: | Frequent electricity outages threaten to impede the benefits of expanded access achieved by many developing countries in recent decades. A large literature documents these negative effects, however almost none consider labour market effects. This paper merges labour force survey microdata with high-frequency electricity supply and demand data to provide the first estimates of the relationships between outages and labour market outcomes in South Africa, a country characterized by frequent, severe outages referred to as load shedding. |
| Keywords: | Electricity, Labour market, Developing countries, South Africa |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-20&r=ene |
| By: | Orsetta Causa; Emilia Soldani; Maxime Nguyen; Tomomi Tanaka |
| Abstract: | Climate change mitigation policies affect the allocation of workers on the labor market: jobs in high-polluting industries will contract, while jobs in the “green” sector will grow. A just transition in the labour market requires policies to improve the allocation of workers and their deployability, for instance towards performing green tasks; as well as to manage and minimise scarring effects associated with job losses in polluting industries. Using an econometric analysis, this paper investigates the role of structural and policy factors in shaping a number of relevant labour market transitions, uncovering heterogeneity across different groups of workers. Education is the most important individual-level driver of transitions from non-employment to green jobs, with a particularly strong effect from graduating in scientific fields for young people entering the labour market. Women are significantly less likely than men to move into green jobs out of non-employment. Workers employed in high-polluting occupations face higher displacement risks than other workers, but this does not translate into higher long-term unemployment risks. In terms of policies, the paper finds that the labour market implications of the greening economy can be addressed by general structural policies favouring labour market efficiency in terms of workers’ reallocation, labour market inclusiveness in terms of promoting equality of opportunities and minimising long-term scars. Results also suggest that place-based policies are needed to mitigate scarring effects for displaced workers. |
| Keywords: | green transition, labour markets, policy analysis |
| JEL: | J08 J21 Q52 Q48 |
| Date: | 2024–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1803-en&r=ene |
| By: | Gong Cheng; Eric Jondeau; Benoit Mojon; Dimitri Vayanos |
| Abstract: | We study the impact of green investors on stock prices in a dynamic equilibrium model where investors are green, passive or active. Green investors track an index that progressively excludes the stocks of the brownest firms; passive investors hold a value-weighted index of all stocks; and active investors hold a mean-variance efficient portfolio of all stocks. Contrary to the literature, we find large drops in the stock prices of the brownest firms and moderate increases for greener firms. These effects occur primarily upon the announcement of the green index's formation and continue during the exclusion phase. The announcement effects imply a first-mover advantage to early adopters of decarbonisation strategies. |
| JEL: | G12 G23 Q54 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32317&r=ene |
| By: | Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | The energy-renewables ecosystem (ERES) plays a particularly important role in the green transition. This paper analyses its relevance in EU member states and the competitiveness for the EU27 as a whole vis-à-vis other global players and identifies structural dependencies and vulnerabilities. It does so by drawing on the Joint Research Centre’s FIGARO dataset and detailed trade data, and by developing a novel approach that adapts input-output indicators to the analysis of industrial ecosystems. A number of key findings emerge from our analysis. First, the ERES is particularly relevant in new member states, Austria and Germany. At the global level, the EU27 is the second most important exporter after China. Second, in 2020 the EU ecosystem was dependent on imports of coal and lignite from Russia, as well as on a variety of other products from China (including medium- and high-tech electronic products). Third, analysis on the basis of detailed trade data indicates that a few products in the ERES supply chain are delivered by only a handful of countries, which could indicate some vulnerability. Most of the partner countries supply some products that may be characterised as ‘risky’, but China is a main source of such products. |
| Keywords: | green transition; energy-renewables ecosystem; linkages; dependencies; open strategic autonomy |
| JEL: | F10 F14 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:wii:rpaper:rr:473&r=ene |
| By: | Joaquin Vespignani (Tasmanian School of Business and Economics, University of Tasmania, Australia); Russell Smyth (Department of Economics, Monash University, Clayton, Australia) |
| Abstract: | This paper employs insights from earth science on the financial risk of project developments to present an economic theory of critical minerals. Our theory posits that back-ended critical mineral projects that have unaddressed technical and nontechnical barriers, such as those involving lithium and cobalt, exhibit an additional risk for investors which we term the “back-ended risk premium”. We show that the back-ended risk premium increases the cost of capital and, therefore, has the potential to reduce investment in the sector. We posit that the back-ended risk premium may also reduce the gains in productivity expected from artificial intelligence (AI) technologies in the mining sector. Progress in AI may, however, lessen the back-ended risk premium itself through shortening the duration of mining projects and the required rate of investment through reducing the associated risk. We conclude that the best way to reduce the costs associated with energy transition is for governments to invest heavily in AI mining technologies and research. |
| Keywords: | Critical Minerals, Artificial Intelligence, Risk Premium |
| JEL: | Q02 Q40 Q50 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:mos:moswps:2024-08&r=ene |
| By: | Avraham Turgeman (West University of Timisoara); Claudiu Botoc (West University of Timisoara); Marilen Pirtea (West University of Timisoara); Octavian Jude (West University of Timisoara) |
| Abstract: | The main aim of the paper is to test an autoregressive implied volatility (IV) model that can significantly predict realized volatility (RV) of stock index. Subsequently, we want to test the predictive power of products that are external to the index of interest (S&P), by including certain commodities that are derived from VIX, i.e., crude oil and gold. The results do not reject the memory effect, given the predictive power of several lags for VIX over realized volatility. Furthermore, crude oil volatility is a significant predictor, alternatively in realized volatility and implied volatility. Finally, gold implied volatility (with higher lags) predicts stock returns volatility, which suggests a gap since traders tend to start gaining gold earlier to be on the safe side. Our findings have certain implications for trading and risk estimation. |
| Keywords: | Implied volatility, Realized volatility, AR model, Forecasting |
| JEL: | C22 G17 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:14115804&r=ene |
| By: | H. Spencer Banzhaf; Randall Walsh |
| Abstract: | Like today, one hundred years ago air pollution was a matter of grave concern in the world's most polluted cities. In the wake of its famous 1908-9 social survey, the City of Pittsburgh commissioned an "Economic Survey of Pittsburgh" from John T. Holdsworth, a prominent institutional economist at the University of Pittsburgh. Although wide ranging, the report opened by stating that "The first fundamental need in Pittsburgh is the eradication of smoke." This report was followed by a series of Smoke Investigations, in which, astonishingly, jars were placed around the city and the ash weighed monthly. In one application, Holdsworth's assistant, John J. O'Connor, estimated the economic costs from smoke. Arguably the first damage-cost study, O'Connor's work challenges our understanding of what counts as "economic" in the progressive era. |
| JEL: | B1 Q5 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32328&r=ene |
| By: | Tushar Gahlaut; Gourav Dwivedi |
| Abstract: | Electric vehicles (EVs) are increasingly becoming popular as a viable means of transportation for the future. The use of EVs may help in providing better climatic conditions in urban areas with a pocket friendly cost for transportation to the consumers throughout its life. EVs enact as a boon to the society by providing zero tailpipe emissions, better comfort, low lifecycle cost and higher connectivity. The article aims to provide scientific information throughout the literature across various aspects of EVs in their lifetime and thus, assist the scholarly community and various organisations to understand the impact of EVs. In this study we have gathered information from the articles published in SCOPUS database and through grey literature with the focus of information post 2009. We have also used a hybrid methodology using Best-Worst Method (BWM) and technique for order preference by similarity to ideal solution (TOPSIS) for comparing EVs, internal combustion engine vehicles (ICEVs) and hybrid vehicles in various price segments. The study has helped us conclude that EVs should be preferred over ICEVs and hybrids by the users. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.11705&r=ene |
| By: | Alberto González Pandiella; Alessandro Maravalle |
| Abstract: | Mexico has large potential to boost its productivity and attract investment from companies looking to relocate their operations to North America. It also has an historic opportunity to spread the benefits of trade throughout the country, integrate SMEs more forcefully into value chains and to create more and better value chain linkages. Nearshoring is also an opportunity to step up efforts to address and mitigate climate change. Fully realising these opportunities will require addressing long standing challenges related to transport and digital connectivity, regulations, the rule of law, renewable energy and water scarcity. |
| Keywords: | Competition, Digitalization, Logistics, Nearshoring, Productivity, renewables, Rule of Law, Trade, Water |
| JEL: | B27 K42 L41 L96 Q4 Q25 |
| Date: | 2024–05–07 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1799-en&r=ene |
| By: | Torijano, Eugenio |
| Abstract: | En este documento se presentan cuadros regionales y nacionales con datos estadísticos del subsector hidrocarburos de los ocho países que conforman el Sistema de la Integración Centroamericana (SICA): Belice, Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panamá y la República Dominicana. Se elaboró gracias a la colaboración de las instituciones nacionales y regionales del sector petrolero de los países del SICA. El informe consta de seis grupos de cuadros, todos referidos al petróleo (petróleo crudo y productos derivados) y gas natural: i) valor de las importaciones y precios; ii) balances de petróleo, derivados y gas natural; iii) consumo interno de hidrocarburos; iv) consumo de energía proveniente de hidrocarburos; v) procedencia de las importaciones y la capacidad de almacenamiento, y vi) estructura de los mercados. La sección de gráficos y mapas se divide en cuatro grupos: i) procedencia de las importaciones, ii) evolución y estructura de los precios de los combustibles, iii) consumo de los derivados del petróleo y gas natural, y iv) impacto de las importaciones en la balanza comercial. |
| Date: | 2024–04–30 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col094:69189&r=ene |
| By: | Ana Zrnic (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek); Dubravka Pekanov (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek); Ivana Fosi? (Faculty of Economics in Osijek, Josip Juraj Strossmayer University of Osijek) |
| Abstract: | This paper provides an analysis of sustainability reporting practices in the European Union, focusing on indicators disclosed by energy companies in accordance with the Global Reporting Initiative (GRI) guidelines and standards. By analyzing data from sustainability reports of energy companies between 2016 and 2019, the paper investigates the evolution of indicator disclosure over time. The findings reveal that economic indicators have been consistently reported without significant fluctuations, while environmental indicators show a slight decline since 2017, albeit without major deviations. On the other hand, social indicators demonstrate a positive trend throughout the entire period, particularly when compared to the lowest disclosure rate in 2016. The analysis highlights the voluntary nature of GRI standards' application and the limited disclosure of economic indicators by companies. It underscores the need to include economic indicators in sustainability reports to ensure a comprehensive representation of all three dimensions of sustainability. Furthermore, the study suggests narrowing down GRI standards as many indicators are underutilized in the analyzed companies. While the development of sustainability reporting standards for EU companies is underway, global comparability remains a challenge. Therefore, the paper envisions the future development of a global sustainability reporting framework, akin to financial reporting, to enhance organizations' assessment, comparability, and improvement of sustainability performance. In this regard, the GRI framework, based on its current application, holds potential for further refinement and formalization. Ultimately, achieving adequate standardization and harmonization will be crucial in advancing the field of sustainability reporting. This is particulary important for investors interested in making informed decisions based on environmental, social, and governance (ESG) factors. |
| Keywords: | Sustainability reporting, GRI standards, Energy companies, Sustainable investment |
| JEL: | M48 Q56 Q49 |
| URL: | http://d.repec.org/n?u=RePEc:sek:iefpro:14115959&r=ene |
| By: | Salome O. Ighomereho; Ifeoma E. Ezeabasili |
| Abstract: | Public policy decision making has become more complex and complicated in recent times. Some authors have attributed this to the fact that public policy decision makers now have more variables to consider in every decision more than ever before. Others have argued that the rate of civilization, globalization and information technology has made the public to be more enlightened and abreast with the activities of government and so can oppose government decisions if they are unfavourable. This tends to increase government need for more and better information in order to satisfy the public. Consequently, this paper examined the issue of fuel subsidy removal in Nigeria, the impact of the policy on the public as well as the country and the role marketing principles would have played if the Nigerian government had taken some time to investigate what should be done, how it should be done and when it should be done. It also proposed a roadmap for future policies that have direct implications for the general public. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.17551&r=ene |
| By: | Martino, Edoardo D; Ringe, W. Georg |
| Abstract: | In the past decade, the legal and economic literature on blockchain technology and its applications has flourished. This new technology holds great promise for enhancing the efficiency of contracting. Building on the classic Coase theorem, blockchain as a decentralised mechanism of decision-making should be superior to centralised regulation, possibly yielding substantial efficiency gains. Notably, it also has the potential to improve the allocation of property rights and reduce transaction costs. However, many of these enthusiastic views about what blockchain technology may bring are overblown. This article demonstrates that blockchain creates a variety of new externalities, which cannot be addressed by the decentralised actors using it. The most obvious of them is the environmental externality stemming from the energy-intensive mining process. In addition, more immediate externalities emerge, for example through the operational and legal risks of being part of a blockchain transaction, which are particularly evident in the crypto economy. Moreover, issues surrounding blockchain governance may exacerbate these challenges. In conclusion, we propose several regulatory strategies to mitigate these shortcomings and harness the full potential of blockchain technology. |
| Keywords: | blockchain technology, Coase theorem, social cost |
| JEL: | K11 K22 K29 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ilewps:80&r=ene |