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on Energy Economics |
| By: | Rode, Johannes |
| Abstract: | This study describes the regional diffusion of household photovoltaic systems in Germany. By the end of 2023, one in eight residential buildings was equipped with such a rooftop solar system. Germany needs to continue accelerating the increase in installed capacity to meet the climate targets. This is important because, among other things, household photovoltaics (PV) generate electricity on site and households can consume it right away, easing the load on the power grid. However, not all regions are equally suitable for PV. Global radiation determines how much electricity a PV system can generate. Considering the regional global radiation, the following regions currently hold great potential for household PV: Bremen, Hamburg, the Saarland, Mecklenburg-Western Pomerania, the region around Dresden, Schleswig-Holstein, the regions around Lüneburg and Trier, parts of Upper Bavaria, Thuringia and southern Hessen. Information offerings and advertising campaigns by suppliers of PV can be particularly promising to speed up diffusion in these regions. |
| Date: | 2024–04–05 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:144789&r= |
| By: | Aude Pommeret (USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Antonin Pottier (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CMB - Centre Marc Bloch - MEAE - Ministère de l'Europe et des Affaires étrangères - Bundesministerium für Bildung und Forschung - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This note is concerned by the difference between production-based taxation and consumption-based taxation of CO2 emissions. We focus on the possible discrepancy between a carbon tax paid by the producer and a tax on the carbon content of the consumed good. We want to appraise if and how incentives from consumption-based taxation are pushed down the production chain. Depending on whether the producer takes as fixed the price he receives or the price paid by the consumer (price the producer receives plus the tax on carbon content), we have two different conclusions. This raises a puzzle: which price should be considered as fixed? We show that, if producers are rational, they should take the price paid by the consumer as given, not the price received by the producer. In this case, the tax on carbon content (consumption-based taxation) is equivalent to the standard carbon tax (production-based taxation). Our analysis stresses the importance of the producer's rationality, as well as the importance of differentiating taxation by the actual carbon content, specific to each producer. |
| Keywords: | Carbon tax, Tax on carbon content, Optimal taxation, Consumption-based policies, Energy transition |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04534079&r= |
| By: | Hiroaki Ino (School of Economics, Kwansei Gakuin University); Toshihiro Matsumura (Institute of Social Science, The University of Tokyo) |
| Abstract: | This study examines the optimal combination of emission and fuel taxes for reducing greenhouse gas emissions in a monopoly market. Greenhouse gases are emitted during both production and consumption stages (life-cycle emissions). We show that when a producer selects fuel efficiency endogenously, an additional strictly positive fuel tax should be imposed even if an optimal emission tax is introduced. Remarkably, the unit cost of fuel should be larger than the marginal social cost of fuel. The results imply that a government may maintain fuel taxes even after introducing an effective emission tax. |
| Keywords: | fuel tax, emission tax, optimal taxation, carbon pricing, vehicle industry, fuel efficiency |
| JEL: | Q58 Q48 H23 L51 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:kgu:wpaper:273&r= |
| By: | Maya A. Norman; Wolfram Schlenker |
| Abstract: | The Green Paradox posits that fossil fuel markets respond to changing expectations about climate legislation, which limits future consumption, by shifting consumption to the present through lower present-day prices. We demonstrate that oil futures responded negatively to daily changes in the prediction market's expectations that the Waxman-Markey bill — the US climate bill discussed in 2009-2010 — would pass. This effect is consistent across various maturities as the proposed legislation would reset the entire price and consumption path, unlike temporary supply or demand shocks that phase out over time. The bill’s passage would have increased current global oil consumption by 2-4%. Furthermore, a strengthening of climate policy, as measured by monthly variations in media salience regarding climate policy over the last four decades, and two court rulings signaling limited future fossil fuel use, were associated with negative abnormal oil future returns. Taken together, our findings confirm that restricting future fossil fuel use will accelerate current-day consumption. |
| JEL: | G18 Q41 Q54 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32405&r= |
| By: | KERAMIDAS Kimon; FOSSE Florian (European Commission - JRC); DIAZ RINCON Andrea (European Commission - JRC); DOWLING Paul (European Commission - JRC); GARAFFA Rafael (European Commission - JRC); ORDONEZ Jose (European Commission - JRC); RUSS Peter (European Commission - JRC); SCHADE Burkhard (European Commission - JRC); SCHMITZ Andreas (European Commission - JRC); SORIA RAMIREZ Antonio (European Commission - JRC); VAN DER VORST Camille (European Commission - JRC); WEITZEL Matthias (European Commission - JRC) |
| Abstract: | This edition of the Global Energy and Climate Outlook (GECO 2023) presents an updated view on the implications of energy and climate policies worldwide to reaching the goals of the Paris Agreement, and contributes to JRC’s work in the UNFCCC policy process. This report provides insight into the investment and related new jobs required by the transition to a low-carbon economy. Current climate policy pledges and targets imply a rapid decline in greenhouse gas emissions. Still, there remains both an implementation gap in adopting policies aligned with countries' mid-term Nationally Determined Contributions and Long-Term Strategies, and a collective ambition gap in reducing emissions to reach the Paris Agreement targets of pursuing efforts to limit global warming to 1.5°C. Global emissions are projected to peak during the current decade, but failing to implement additional policies puts the world on a trajectory towards a long-term temperature increase of 3°C. The current decade is key for keeping the 1.5°C target possible. GECO 2023 highlights the global investment needs of the 1.5°C scenario. Accelerated carbonisation efforts are needed across all sectors of the economy. Energy sector investments need to triple this decade, doubling energy efficiency rates and bringing renewables deployment to 11 TW by 2030. This transition comes along with substantial investment spill-over and stimulus effects, boosting investment and employment across value chains, e.g. in the construction and electrical and equipment goods manufacturing. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136265&r= |
| By: | Christoph Böhringer; Knut Einar Rosendahl; Halvor Briseid Storrøsten |
| Abstract: | Countries with ambitious climate targets are concerned about carbon leakage to countries with more lenient or no carbon pricing. A common policy measure against leakage is output-based allocation of emissions allowances, whose effectiveness could be further enhanced by consumption taxes levied on the carbon intensity of goods. We combine theoretical and numerical analysis to derive optimal combinations of output-based allocation and consumption taxes for different assumptions on the stringency of emissions reduction targets, the coverage of emissions in regulated sectors, and their trade exposure. A key analytical finding is that output-based allocation and consumption taxes are complements rather than substitutes, i.e., the extent of output-based allocation should be higher if combined with a consumption tax. A key numerical finding is that the optimal output-based allocation and consumption tax rates should be set at almost the same rate and increase substantially with the stringency of the emissions reduction targets. |
| Keywords: | carbon leakage, output-based allocation, consumption taxes |
| JEL: | D61 F18 H23 Q54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11102&r= |
| By: | Frondel, Manuel; Gerster, Andreas; Hiemann, Philipp; Kaestner, Kathrin; Pahle, Michael; Schwarz, Antonia; Singhal, Puja |
| Abstract: | Im Herbst 2022 fand die zweite Erhebung des im Rahmen des BMBF-geförderten Kopernikus-Projekts Ariadne etablierten Wärme- & Wohnen-Panels unter ca. 15.000 Haushalten statt. Das Panel verknüpft in bislang einzigartiger Weise Informationen zum Gebäudebestand und dem Endenergiebedarf mit Angaben zu den sozioökonomischen Charakteristika der Haushalte. Ein Schwerpunkt lag auf den Auswirkungen der durch den Angriff Russlands auf die Ukraine verursachten Energiepreiskrise auf die privaten Haushalte. So wurde gefragt, wie stark die Teilnehmenden von den steigenden Energiepreisen betroffen sind und welche Maßnahmen sie dagegen ergreifen würden. Lediglich 28% der Teilnehmenden planten jedoch, ihren Heizenergieverbrauch im Winter 2022/2023 stark oder sehr stark zu reduzieren. Ein bemerkenswertes Ergebnis ist auch, dass nur etwa 21% der Antwortenden angaben, die Informationskampagne der Bundesregierung mit dem Titel "80 Millionen gemeinsam für den Energiewechsel" wahrgenommen zu haben. Andererseits hat die überwältigende Mehrheit von etwa 88% der Befragten von der für Herbst 2022 geplanten, letztlich aber nicht eingeführten Gasumlage gehört. Als größten Hinderungsgrund in Bezug auf energetische Modernisierung wurden steigende Preise im Baugewerbe genannt, die Unsicherheit über die Preisentwicklung verschiedener Energieträger war ebenfalls von großer Bedeutung. |
| Abstract: | In fall 2022, the second survey of the Heating & Living Panel, which was established as part of the BMBF-funded Kopernikus project Ariadne, was conducted among around 15, 000 households. The panel combines information on the building stock and final energy demand with data on the socio-economic characteristics of households in a unique way. One focus was on the effects of the energy price crisis caused by Russia's attack on Ukraine on private households. Participants were asked how badly they were affected by rising energy prices and what measures they would take to counteract this. However, only 28% of participants planned to reduce their heating energy consumption significantly or very significantly in the winter of 2022/2023. Another notable result is that only around 21% of respondents stated that they had taken note of the German government's information campaign entitled "80 million together for the energy transition". On the other hand, the overwhelming majority of around 88% of respondents had heard about the gas levy planned for fall 2022 but ultimately not introduced. Rising prices in the construction industry were cited as the biggest obstacle to energy modernization, while uncertainty about the price development of various energy sources was also of great importance. |
| Keywords: | Endenergiebedarf, Heizkosten, Modernisierungsrate |
| JEL: | D12 Q41 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwimat:295239&r= |
| By: | Hugo Morão |
| Abstract: | This paper explores the impact of unexpected changes in European carbon policy on Portugal’s energy sector, focusing on effects on sales, output prices, and labor market dynamics. Using a structural vector autoregression (SVAR) model, the study finds that news of tighter carbon regulations leads to a significant short-term increase in domestic sales. Output prices rise in both home and foreign markets, with a larger increase observed in the latter. The labor market responds positively, as evidenced by higher wages and hours worked. The study also reveals that these carbon policy changes have played a significant role in historical fluctuations within the energy sector, especially during the Great Financial Crisis and key policy changes. The findings highlight the importance of judicious policymaking concerning carbon regulations, as the escalation in energy prices wields significant economic effects, though not all of these effects are bad from the energy industry standpoint. |
| Keywords: | climate policy, carbon credits, emissions trading, cap and trade, Euro Area, SVAR |
| JEL: | E32 E62 H23 Q48 Q58 L94 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ise:remwps:wp03212024&r= |
| By: | Tony Addison; Alan R. Roe |
| Abstract: | While market mechanisms and private initiatives can deliver much for development, public action is also necessary to: maximize the economic benefits of the extractive industries; manage potentially large capital and revenues flows; minimize adverse environmental and social impacts; and steer the economy towards a net zero future. An 'All of Government Approach' is desirable: to coordinate action, especially between local and central government, around a long-term sector strategy; and to provide the private sector with a consistent policy framework which encourages investment. |
| Keywords: | Extractive industries, Oil, Mining, Natural gas, Sovereign wealth funds, Taxation |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-33&r= |
| By: | Tony Addison; Alan R. Roe |
| Abstract: | This paper analyses the roles that states, civil society, and international actors can play in tackling the weak governance that sometimes leads to resources being used for private rather than public benefit. It discusses the corruption that bedevils licensing and commodities trading; and oil theft which runs into billions of dollars. Ensuring transparency in revenue flows to the state is vital to better fiscal management, building governmental accountability to citizens, and to avoiding state fragility. |
| Keywords: | Commodities, Corruption, Extractive industries, Mining, Natural gas, Oil |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-32&r= |
| By: | Tony Addison; Alan R. Roe |
| Abstract: | Companies in the oil, gas, and mining sectors face ever intensifying scrutiny over their environmental, social, and governance (ESG) practices and impacts: from civil society but also from investment funds and other stakeholders with ESG mandates. Companies with good practices—and the paper documents significant progress since 2000—can deliver substantial benefits to host economies: both local and national. The paper suggests further ways in which they could enhance their impacts in partnerships with government. |
| Keywords: | Africa, Extractive industries, Mining, Natural gas, Oil |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:unu:wpaper:wp-2024-34&r= |
| By: | Joaquin Vespignani; Russell Smyth |
| 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:een:camaaa:2024-30&r= |
| By: | Bolz, Simon J.; Naumann, Fabrice; Richter, Philipp M. |
| Abstract: | Expanding on a general equilibrium model of offshoring, we analyze the effects of a unilateral emissions tax increase on the environment, income, and inequality. Heterogeneous firms allocate labor across production tasks and emissions abatement, while only the most productive can benefit from lower labor and/or emissions costs abroad and offshore. We find a non-monotonic effect on global emissions, which decline if the initial difference in emissions taxes is small. For a sufficiently large difference, global emissions rise, implying emissions leakage of more than 100%. The underlying driver is a global technique effect: While the emissions intensity of incumbent non-offshoring firms declines, the cleanest firms start offshoring. Moreover, offshoring firms become dirtier, induced by a reduction in the foreign effective emissions tax in general equilibrium. Implementing a BCA prevents emissions leakage, reduces income inequality in the reforming country, but raises inequality across countries. |
| Keywords: | Offshoring, Emissions leakage, Environmental policy, BCA, Heterogeneous firms, Income inequality |
| JEL: | F18 F12 F15 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuewep:295231&r= |
| By: | Roland Condor (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie) |
| Abstract: | The purpose of this article is to present and discuss an ongoing research programme on local carbon offsetting. It is based on a literature review and a few interviews with local voluntary carbon offsetting actors: farmers, communities, farmer services and experts. The paper first outlines how we moved from international to local carbon offsetting. The research methodology is then presented before the first elements of reflection are presented and discussed. In conclusion we propose a new term for designing local carbon offsetting: short carbon supply chain. This new concept suggests to think about carbon offsetting as a local supply chain dedicated to carbon storage and credits. |
| Keywords: | Carbon offsetting, Short Carbon Supply Chain, Carbon credits |
| Date: | 2023–07–17 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04552631&r= |
| By: | Feld, Immanuel (University of Warwick); Fetzer, Thiemo (University of Warwick & Bonn and affiliated with CEPR, CAGE, NIESR, ECONtribute, Grantham Institute) |
| Abstract: | Climate action requires significant public- and private sector investment to achieve meaningful reductions in carbon emissions. This paper documents that large-scale austerity, coupled with barriers to flows of data and a lack of (digital) skills in (local) government, may have been a significant barrier to delivering climate action in the form of retrofitting. Decomposing heterogeneity in estimated treatment effects of a large-scale energy efficiency savings program that was rolled out through a regression discontinuity design in the early 2010s, we find that both the extent of austerity-induced local budget cuts and poor digital connectivity – may be responsible for up to 30% fewer retrofit installations that counterfactually would have taken place had it not been for austerity |
| Keywords: | state capacity, austerity, skills, climate action, public economics JEL Classification: Q54, Q58, H76, C21, O33, R11, H54 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:cge:wacage:708&r= |
| By: | Célia Escribe (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CMAP - Centre de Mathématiques Appliquées - Ecole Polytechnique - X - École polytechnique - CNRS - Centre National de la Recherche Scientifique); Lucas Vivier (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, ENPC - École des Ponts ParisTech); Louis-Gaëtan Giraudet (ENPC - École des Ponts ParisTech); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | The low uptake of low-carbon heating systems across Europe has prompted au- thorities to consider more ambitious measures, including a complete ban on the instal- lation of new fossil fuel boilers. In this analysis, we assess this measure by simulating 3, 072 scenarios covering major uncertainties in a framework that includes both real- istic policy response and key interactions between the residential and energy sectors. Taking France as a case study, we demonstrate that the ban is critical to meet car- bon neutrality. Despite costly investments in heating system, the ban leads to higher cost-effectiveness across uncertainties, by saving additional flexibility capacity in the energy system. We finally illustrate how a well-designed subsidy program is instrumen- tal in mitigating horizontal and vertical inequalities that may arise from the policy's implementation. |
| Keywords: | climate change mitigation, fossil fuel ban, residential sector, energy mix, policy assessment |
| Date: | 2024–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04538870&r= |
| By: | Michel Aglietta; Camille Macaire |
| Abstract: | Le 14e plan quinquennal de la Chine a inauguré la «double circulation», un changement structurel de l’accumulation intensive de capital (la Chine comme usine du monde) vers un développement dirigé par l’innovation. La part intérieure de la stratégie consiste à développer le marché domestique, en adressant la question du vieillissement démographique. Elle constitue une opportunité de développement, avec la constitution d’un immense marché de consommation. Mais elle exigera aussi une refonte en profondeur des filets de sécurité, qui peine à se matérialiser. La montée en gamme de l’appareil productif, élément central de la stratégie intérieure, se heurte à l’instrumentalisation par les États-Unis de l’industrie des semi-conducteurs dans leur stratégie d’endiguement de la Chine, avec des implications aussi bien civiles que militaires. Enfin, le chemin vers la neutralité carbone en 2060 sera très abrupt, et la feuille de route pour y parvenir est lacunaire et peine à convaincre pour l’instant. La Chine, qui est devenue leader dans l’industrie de la transition énergétique, pourrait toutefois transformer en partie ce défi en opportunité comme relais de croissance. La part internationale de la transformation du régime de croissance consiste à proposer une alternative au système organisé autour des institutions de Bretton Woods pour un nouvel ordre géopolitique, en faisant de la Chine le chef de file des pays émergents. Cet appel trouve un écho favorable auprès de pays qui pour certains manifestent leur volonté de s’émanciper de l’influence américaine, comme on l’a vu à l’occasion du dernier sommet annuel des BRICS. Mais il se heurte à une méfiance toujours forte vis-à-vis des desseins chinois, dans un contexte de résurgence d’un antagonisme sino-américain qui s’est fortement durci et qui paraît irréconciliable. La Chine a une feuille de route ambitieuse. Elle devra faire face à des défis majeurs, démographiques, climatiques et géopolitiques, qui pourraient ralentir la transformation de son modèle de croissance et limiter sa sphère d’influence sur la scène mondiale. |
| Keywords: | China;dual circulation;energy transition;geopolitical fragmentation;BRICS |
| JEL: | E61 F02 F33 F51 O53 |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepipb:2023-43&r= |
| By: | Lucas Vivier (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, ENPC - École des Ponts ParisTech); Louis-Gaëtan Giraudet (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, ENPC - École des Ponts ParisTech) |
| Abstract: | This study assesses the long-term cost-effectiveness and distributional impacts of various energy efficiency policies to decarbonize the French residential sector. It does so using Res-IRF 4.0, a significantly enhanced version of a behaviorally- and technologically-rich model of residential energy demand in France. Our analysis reveals that deep decarbonization targets cannot be achieved with current policies. However, we demonstrate that the progressive implementation of new mitigation policies generates net socio-economic benefits. In particular, newly implemented direct subsidies that direct support toward low-income households and deep renovation outperform precedent attempts. Mandatory renovation for privately rented dwelling and carbon tax, plays a significant role in enhancing socio-economic balance. Finally, we illustrate that banning the adoption of new natural-gas boilers will significantly accelerate the transition to low-carbon fuels with social benefits outweighing additional costs. Our research highlights the importance of a multifaceted approach to reach climate and social objectives. Overall, by incorporating policy frictions in bottom-up modelling, we provide more plausible long-term policy assessments. |
| Keywords: | climate change mitigation, energy efficiency, residential sector, building stock models, ex-ante policy assessment, applied policy analysis |
| Date: | 2024–01–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04510798&r= |
| By: | Rim El Khoury; Nohad Nasrallah (LARGE - Laboratoire de Recherche en Gestion et Economie - UNISTRA - Université de Strasbourg); Khaled Hussainey; Rima Assaf |
| Abstract: | This study is epicentral to analyze the impact of the Russia–Ukraine war on the financial markets, specifically focusing on the connectedness and spillover dynamics of FinTech, Environmental, Social, and Governance (ESG), renewable energy, gold, and Morgan Stanley Capital International (MSCI) indices in developed and emerging countries. Data are collected from Thomson Reuters, ranging from May 8, 2020, to May 11, 2022, and a time-varying parameter vector autoregression (TVP-VAR) and the dynamic conditional correlation (DCC) generalized autoregressive conditional heteroskedasticity (GARCH) t-Copula (DCC-GARCH t-Copula) are used to analyze the data. The results show that FinTech, ESG, and MSCI are net transmitters in developed countries, whereas gold and renewable energy are net receivers pre- and during war periods. ESG and MSCI are net transmitters in emerging countries, while FinTech, renewable energy, and gold become net receivers in both periods. The hedging ratio sheds light on the costs and weights of efficient pair investments that might change in the context of each region and under the combined scenario. The study has important implications for merchant bankers, policymakers, investors, hedgers, and risk managers. |
| Date: | 2023–05–26 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04564870&r= |
| By: | NEIFAR, MALIKA; HDIDER, ANIS |
| Abstract: | Through an empirical analysis of the impact of fluctuations in the international prices of crude oil, natural gas and wheat on the US stock market performance, the study seeks to show evidence of the investor social network sentiment effects post the Ukraine war declaration on February 24, 2022. A comparative approach was used for Ukraine's pre- vs post-war declaration period. The considered models are of the GARCH-X type. Founding show that only post-war declaration; investor sentiment as well as the economic factors such as the prices of raw materials (including crude oil and natural gas) and food (wheat) have caused the volatility of the S&P 500 index return, while market volatility (VIX) affect negatively the stock market return pre- and post-war declaration. |
| Keywords: | S&P500 stock index; American market volatility (the VIX index); American investor sentiment on tweeter, Ukraine War; commodity prices (crude oil, natural gas and wheat); GARCH-X model. |
| JEL: | E44 G11 G15 |
| Date: | 2024–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120920&r= |
| By: | Yuan, Mingqing |
| Abstract: | This study examines the stock market reactions to the announcements and issuances of 402 ESG bonds from 153 listed Japanese firms, employing an event study methodology. Results show strong positive market reactions to green bonds and transition bonds, while sustainability bonds evoke modest short-term positivity following their announcement. Social and sustainability-linked bonds show minimal to insignificant impact, and transition-linked bonds incurs negative stock reactions. These outcomes offer insights for the market by indicating differentiated investor perceptions of ESG bonds, for issuers by highlighting positively priced green financing instruments, and for policymakers by evaluating the effectiveness of green finance policies. |
| Keywords: | Green bonds, Green finance, Market reactions, Event study |
| JEL: | G14 G3 G32 Q5 Q56 Q57 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120943&r= |
| By: | Rickels, Wilfried; Fridahl, Mathias; Rothenstein, Roland; Schenuit, Felix |
| Abstract: | A carbon central bank (CCB) that translates carbon removals into allowances would transform the European Union Emissions Trading System (EU ETS) from a fiat allowance to a gold standard system, ensuring unchanged net emissions on the path to net-zero greenhouse gas (GHG) targets. Meeting such expectations would require a CCB with a clear commitment to a net-zero GHG target, but also with the capacity to manage the market on the path to that target. This requires a strong institutional framework, which could be achieved by integrating the CCB into the European Central Bank (ECB), building on its reputation and capacity. Given the long lead time to set up such an institution, the European Commission should already take the first steps to fulfil the other requirement, namely building up a large carbon removal certificate (CRC) reserve, which would provide the CCB with the credibility to stabilize the market in the future. To fill the CRC reserve, the EU should emulate the US approach by immediately initiating result-based carbon removal procurement as a first key step of a sequential approach to integrated carbon removal into climate policy. This could be achieved by developing a centralized procurement program, supporting existing procurement programs, such as Sweden's or Denmark's, and incentivizing additional EU member states to initiate procurement. An important prerequisite for this is the ability to bank CRCs that are not yet eligible for compliance with near-term EU climate targets and use them in later crediting periods. |
| Abstract: | Eine CO2-Zentralbank (Carbon Central Bank, CCB), die atmosphärische CO2-Entnahme in Zertifikate übersetzt, würde das Emissionshandelssystem der Europäischen Union (EU ETS) langfristig von einem Fiat-Zertifikate-System in ein Goldstandard-System umwandeln und damit unveränderte Nettoemissionen auf dem Weg zu Netto-Null-Treibhausgasemissionen gewährleisten. Um diese Erwartungen zu erfüllen, bedarf es einer starken CCB mit einem klaren Bekenntnis zu einem Netto-Null-Treibhausgas-Ziel. Zudem sollte die CCB mit der Fähigkeit ausgestattet werden, den Markt auf dem Weg zu diesem Ziel zu stabilisieren. Dies erfordert einen starken institutionellen Rahmen, der durch die Eingliederung der CCB in die Europäische Zentralbank (EZB) erreicht werden könnte, wobei auf deren Ruf und Kapazität aufgebaut werden könnte. Angesichts der langen Vorlaufzeit für die Einrichtung einer solchen Institution sollte die Europäische Kommission bereits jetzt erste Schritte unternehmen, um die andere Voraussetzung zu erfüllen, nämlich eine Reserve an CO2-Entnahme Zertifikaten aufzubauen, die einer CCB in der Zukunft die Glaubwürdigkeit verleihen würde, den Markt zu stabilisieren. Um die CRC-Reserve aufzubauen, sollte die EU nach dem Vorbild der USA sofort mit der ergebnisorientierten Beschaffung von CO2-Entnahme zu beginnen, der dann den ersten Schritt für eine sequenzielle Integration von CO2-Entnahme in die Klimapolitik bilden würde. Dies könnte durch die Entwicklung eines zentralen Beschaffungsprogramms erreicht werden, das bestehende Programme wie in Schweden oder Dänemark unterstützt und neue Programme in weiteren Mitgliedstaaten anreizt. Eine wichtige Voraussetzung dafür ist die Möglichkeit, CO2-Entnahme-Zertifikate, die noch nicht für die Erfüllung der kurzfristigen EU-Klimaziele in Frage kommen, zu "sparen" und in späteren Anrechnungszeiträumen zu nutzen. |
| Keywords: | Carbon Dioxide Removal, Carbon Central Bank, Carbon Certificate Banking, Net-Zero Emissions Targets, Net-Negative Emissions Targets, CO2-Entnahme, CO2-Zentralbank, CO2-Zertifikatereserve, Netto-Null Emissionsziele, Netto-Negative Emissionsziele |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkpb:295745&r= |
| By: | Simola, Heli |
| Abstract: | A sharp increase in fixed investment has been a key factor supporting Russia's economy in recent years. This brief highlights the drivers of Russia's recent investment boom. During 2022, the first year of the full-blown war in Ukraine, investment growth was dominated by increased budget spending, war-related investment in construction of transport and warehouse infrastructure, as well as investment in oil & gas production in western Siberia. In 2023, the emphasis in investment growth shifted to firms funding investment out of pocket and manufacturing, particularly firms involved in war-related or resource-intensive branches. Although intellectual property (IP) only represents a small share of Russia's total investment, IP investment has increased sharply in recent years. |
| Keywords: | Russia, war, economy, investment |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofitb:295238&r= |
| By: | Stefano Clò; Gianluca Iannucci; Alessandro Tampieri |
| Abstract: | This paper examines the interplay between firms' choices regarding Environmental Corporate Social Responsibility (ECSR) activities and the implementation of an emission trading system (ETS) within an oligopoly industry. We determine the equilibrium and stability conditions of an endogenous industry configuration where profit-seeking (PS) and ECSR firms coexist in the presence of an ETS policy. We derive some testable findings: first, the ECSR strategy is favoured by the increase in consumers' environmental concern, irrespective of any policy implementation. Second, the number of ECSR firms increases with the implementation of the ETS policy, provided that the number of allowances is sufficiently high. Finally, the number of ECSR firms decreases with the stringency of the ETS policy. We test the theoretical findings with a longitudinal dataset spanning the years 2002-2021, by evaluating how the number of ECSR firms in several industries and countries is affected by the introduction of the ``EU ETS scheme'' in 2005. Our empirical results are consistent with what is expected from the theory. |
| Keywords: | Emission trading scheme, Mixed oligopoly markets, Emission reduction investment |
| JEL: | C73 H23 L13 L21 M14 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:frz:wpaper:wp2024_06.rdf&r= |
| By: | Bartsch, Florian; Busies, Iulia; Emambakhsh, Tina; Grill, Michael; Simoens, Mathieu; Spaggiari, Martina; Tamburrini, Fabio |
| Abstract: | Amid the growing financial vulnerabilities posed by climate change, we investigate macroprudential capital buffers to mitigate systemic risks and increase the resilience of the banking sector. Leveraging granular data and state-of-the-art stress testing methods, we quantify potential bank losses attributed to climate-related transition risks. Focusing on short-term transition scenarios, we document a significant variance among banks in their risk exposure, with the most exposed institutions being those characterized by lower excess capital. Subsequently, we introduce a methodological framework for tailoring bank-specific buffer requirements to cover these losses, offering macroprudential authorities a practical method for calibrating climate-related macroprudential capital buffers, complementing microprudential policies. While we focus our application on transition risks, the framework can be extended to capture all climate risks in general. The study demonstrates the potential of macroprudential capital buffers to mitigate potential climate-related losses and contributes to the understanding of the appropriate prudential policy response to these challenges. JEL Classification: E61, G21, G28, Q54 |
| Keywords: | climate change, climate risk, macroprudential policy, transition risk |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242943&r= |
| By: | Aidan Coville; Joshua S. Graff Zivin; Arndt Reichert; Ann-Kristin Reitmann |
| Abstract: | Solar technologies have been associated with private and social returns, but their technological potential often remains unachieved because of persistently low demand for high-quality products. In a randomized field experiment in Senegal, we assess the potential of three types of quality signaling to increase demand for high-quality solar lamps. We find no effect on demand when consumers are offered a money-back guarantee but increased demand with a third-party certification or warranty, consistent with the notion that consumers are uncertain about product durability rather than their utility. However, despite the higher willingness to pay, the prices they would pay are still well below market prices for the average household, suggesting that reducing information asymmetries alone is insufficient to encourage wider adoption. Surprisingly, we also find that the effective quality signals in our setting stimulate demand for low-quality products by creating product-class effects among those least familiar with the product. |
| JEL: | D12 D83 L15 O13 Q41 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32397&r= |
| By: | Paolo Gelain; Marco Lorusso; Saeed Zaman |
| Abstract: | We document a sizable effect of oil price fluctuations on US banking variables by estimating an SVAR with sign restrictions as in Baumeister and Hamilton (2019). We find that oil market shocks that lead to a contraction in world economic activity unambiguously lower the amount of bank credit to the US economy, tend to decrease US banks' net worth, and tend to increase the US credit spread. The effects can be strong and long-lasting, or more modest and short-lived, depending on the source of the oil price fluctuations. The effects are stronger for smaller and lower leveraged banks. |
| Keywords: | oil market shocks; Bayesian SVAR models; sign restrictions; bank credit |
| JEL: | E32 E44 Q35 Q43 |
| Date: | 2024–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedcwq:98264&r= |
| By: | Saroj Bhattarai (University of Texas at Austin); Arpita Chatterjee (University of New South Wales); Gautham Udupa (CAFRAL, Reserve Bank of India) |
| Abstract: | Exogenous global commodity price shocks lead to a significant decline over time in Indian household consumption. These negative effects are heterogeneous along the income distribution: households in lower income groups experience more adverse consumption effects following an exogenous rise in food prices, whereas households in the lowest and the two highest income groups are affected similarly following an exogenous rise in oil prices. We investigate how income and relative price changes contribute to generating these heterogeneous effects. Global food price shocks lead to significant negative wage income effects that mirror the pattern of negative consumption effects along the income distribution. Both global oil and food price shocks pass-through to local consumer prices in India and increase the relative prices of fuel and food respectively. Expenditure share of food increases with such a rise in relative prices, which provides unambiguous evidence for nonhomothetic preferences. Using the expenditure share responses together with theory, we show that food, compared to fuel, is a necessary consumption good for all income groups. |
| Keywords: | Global Price shocks; Food prices; Oil prices; Inequality; Household heterogeneity; Household consumption; Necessary good; Non-homotheticity; India |
| JEL: | F41 F62 O11 |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:swe:wpaper:2024-03&r= |
| By: | Adrien Bilal; Diego R. Känzig |
| Abstract: | This paper estimates that the macroeconomic damages from climate change are six times larger than previously thought. We exploit natural variability in global temperature and rely on time-series variation. A 1°C increase in global temperature leads to a 12% decline in world GDP. Global temperature shocks correlate much more strongly with extreme climatic events than the country-level temperature shocks commonly used in the panel literature, explaining why our estimate is substantially larger. We use our reduced-form evidence to estimate structural damage functions in a standard neoclassical growth model. Our results imply a Social Cost of Carbon of $1, 056 per ton of carbon dioxide. A business-as-usual warming scenario leads to a present value welfare loss of 31%. Both are multiple orders of magnitude above previous estimates and imply that unilateral decarbonization policy is cost-effective for large countries such as the United States. |
| JEL: | E01 E23 F18 O44 Q54 Q56 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32450&r= |
| By: | Pazhanisamy, R.; Mathew, Thomas |
| Abstract: | With the evolving landscape of automotive technologies and increased environmental regulations, there is a pressing need for advanced fuel additives that can enhance the performance, efficiency, and environmental footprint of next-generation combustion engines. The developed additive comprises a unique blend of detergents, cetane and octane boosters, antioxidants, and corrosion inhibitors, tailored to improve fuel efficiency, engine life, and emissions quality. The formulation also includes novel bio-based components that enhance the biodegradability and reduce the carbon footprint of the fuel, aligning with global sustainability goals. The introduction of this fuel additive not only promises to extend the operational life of next-generation engines but also supports the automotive industry's move towards more sustainable and environmentally friendly solutions. Future research will focus on optimizing the additive formulation for use with alternative fuels and exploring the potential impacts on emerging propulsion technologies. In this context a new generation fuel has introduced in India named super petrol which can add the values to the petrol by increasing vehicles performance and reducing the carbon emission with some minimal additional cost. But the market for such inevitable eco friendly product becomes disappeared in both the auto mobile industry and from the literature which demand and attempt to make an investigation into the market failure. This paper is attempted to fill this gap in the research. |
| Keywords: | Environmental effects of fuel, Environmental economics & government policy, Refining Hydrocarbon fuels, Management of Technological Innovation and R&, Alternative Energy Sources, Government policy and externalities |
| JEL: | Q51 Q58 L71 O32 Q42 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:295100&r= |
| By: | Haldar, Stuti (CIRCLE, Lund University); Grillitsch, Markus (CIRCLE, Lund University); Bazaz, Amir (Indian Institute for Human Settlements) |
| Abstract: | This paper addresses the critical gap in understanding the justice implications of renewable energy transitions, particularly concerning the agency of different actor groups, including marginalised and local communities. Given urgency of transitioning to renewables to mitigate climate risks, it highlights the need for more human centric approaches to ensure equitable outcomes. To bridge this gap, the study proposes a theoretical framework centered on the capability approach, human agency, and energy justice. This framework demonstrates how capability sets shape human agency and influence the trajectory of transitions. Through a case study of the Pavagada Solar Power Park in India, the study exemplifies the practical application of this framework, exploring how policy interventions can enhance capability sets and empower communities throughout transition processes. By surfacing the mechanisms through which capability enhancement can foster more just outcomes, this research seeks to inform policymakers, practitioners, and scholars navigating the complexities of just energy transitions. Overall, this study contributes to advancing the discourse on energy justice and offers actionable insights for achieving more equitable and resilient energy transition pathways. |
| Keywords: | energy justice; energy transitions; institutional work; human agency; capability approach |
| JEL: | O20 O44 |
| Date: | 2024–05–30 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lucirc:2024_007&r= |
| By: | Clara Turner; Jeff Allen; Karen Chapple; Sarah A. Smith (University of Toronto) |
| Abstract: | This paper assesses the potential effects of housing development on regional greenhouse gas emissions in Ontario’s Greater Golden Horseshoe. Using models of different development scenarios based on household vehicle kilometres travelled and energy use, we evaluate the impacts of different forms of new housing production on greenhouse gas reduction targets and suggest housing and land use best practices and policy approaches. We model core scenarios of development from 2023 to 2030 that reflect current debates on housing development and land use planning in the region that include Build as Usual (on-going intensification); All-Sprawl (under recent policy changes); and four alternatives: Business as Usual, Moderate, Limited, and No Sprawl. Our findings suggest that aggressive intensification would reduce greenhouse gas emissions by as much as 26 percent, with particularly significant and compounding effects to be expected over the long term. We conclude that progressive land use planning and other mechanisms by the provincial, regional, and municipal orders of government that reduce the emissions generated by buildings, preserve open space that provides critical carbon sequestration, and reduce vehicle miles travelled, should be aggressively strengthened to build on progress made under the Province’s Growth Plan for the Greater Golden Horseshoe. |
| Keywords: | intensification, sprawl, land use planning, climate change, greenhouse gas emissions, Canada, ghg, greater golden horseshoe, ontario |
| JEL: | R52 R58 Q58 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:mfg:wpaper:67&r= |
| By: | Khezri, Mohsen; Mamkhezri, Jamal; Heshmati, Almas |
| Abstract: | Purpose: This study endeavors to elucidate the divergent conclusions encountered in empirical research regarding the interplay of Economic Growth (EG) and Energy Consumption (EC). Design/methodology/approach: For this purpose, we employ the Panel Smooth Threshold Regression (PSTR) model to intricately examine the non-linear impacts of independent variables on EC and EG within a dataset encompassing 46 countries over the period from 1996 to 2021. Findings: The outcomes of our investigation can be summarized as follows: First, the findings underscore the positive impact of the logarithm of net capital formation on EG. This impact is particularly pronounced at low levels of Research and Development (R&D), gradually waning beyond a certain threshold. Second, the ratio of capital to labor exhibits a negative influence on EC at lower R&D levels. Notably, these detrimental impacts become more pronounced as R&D levels increase. Third, trade openness contributes positively to EG, particularly evident at low R&D levels. However, with increasing R&D levels, the incremental benefits from trade diminish. Finally, our findings lend support to the feedback hypothesis. Nevertheless, the impact of R&D expenditures in countries moderates these positive effects. Practical implications: Policymakers should strategically balance resource allocation between capital formation and research endeavors, considering diminishing returns at elevated levels of R&D spending, to ensure sustained EG. |
| Keywords: | economic growth (EG); energy consumption (EC); panel smooth threshold regression (PSTR) model; R&D spending |
| JEL: | F43 O32 O40 O47 Q41 |
| Date: | 2024–05–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122698&r= |
| By: | Dorothée Charlier (USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc, IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Aude Pommeret (USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc, IREGE - Institut de Recherche en Gestion et en Economie - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc); Francesco Ricci (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | We present a formal model that analyzes the trade-offs between environmental policy and economic growth in a developing economy. The adoption of restrictive environmental policies limits the use of abundant fossil energy resources, which may slow down economic development and thus violate the Right-to-Development. If faster economic growth allows a country to grow out of pollution sooner, less stringent policies are good for growth and even for the environment, having adopted a long-term horizon. Accounting for a ceiling on cumulative emissions can reinforce the argument by providing an additional rationale to phase out pollution. One assumption is crucial for the argument to hold: polluting fossil energy is an essential input over the early phase of economic development, but not in the later phases. Such a discontinuity could result from structural change. We provide empirical evidence for the plausibility of a discontinuity in the elasticity of carbon dioxide emissions with respect to aggregate output, using cross country data, even if it does not appear to be as strong as assumed in the model economy. |
| Keywords: | Developing countries, Structural change, Fossil energy intensity, Pollution, Right to development |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04569038&r= |
| By: | NEIFAR, MALIKA; HarzAllah, AMIRA |
| Abstract: | This paper seeks to explore the impact of oil price shocks, real industrial production and interest rate on stock prices for six oil exporting countries and five oil importing countries using nonlinear autoregressive distributed lags (NARDL)model using monthly data for the period 1993 : 09−2017 : 01. Empirical results show strong evidence of asymmetry in the impact of positive and negative changes in oil prices, industrial production, and short term interest rate on the stock market price. We find that the reaction of real stock prices to an oil shock can vary considerably depending on whether the country is a net importer or net exporter of oil. |
| Keywords: | NARDL; Asymmetry ; Symmetry ; Oil exporting countries ; Oil importing countries |
| JEL: | C32 G1 G15 Q43 |
| Date: | 2024–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120938&r= |
| By: | Bruno Fontaine (SMASH - Société de Mathématiques Appliquées et de Sciences Humaines, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Antoine Teixeira (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, ADEME - Agence de l'Environnement et de la Maîtrise de l'Energie); Fanny Vicard (ADEME - Agence de l'Environnement et de la Maîtrise de l'Energie) |
| Keywords: | Input-output, Carbon footprint, Material footprint, Net-zero transition, hybrid calibration |
| Date: | 2023–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ciredw:hal-04483042&r= |
| By: | Samuel Fiifi Eshun (Institute of Economic Studies, Charles University, Prague, Czech Republic); Evzen Kocenda (Institute of Economic Studies, Charles University, Prague, Czech Republic; CESifo, Munich, Germany; IOS, Regensburg, Germany; Department of Banking and Insurance, Faculty of Finance and Accounting; Institute of Information Theory and Automation of the CAS, Prague; the Euro Area Business Cycle Network) |
| Abstract: | This study explores the dynamic relationship between financial inclusion and green sustainability across 38 African countries. We constructed an environmental pollution index and a financial inclusion index covering the period 2000-2021 to account for the several dimensions within both indicators and employed them in the System GMM approach. We also tested for intra-regional heterogeneity in Africa. Our empirical results show that financial inclusion, while economically beneficial, poses a significant risk of environmental degradation and has a distinctive inverted U-shaped relationship. A direct link between increases in financial inclusion and pollution alters at a turning point, beyond which further increments in financial inclusion enhance green sustainability. The same pattern is observed for aggregate output. The results hold even when we control for a score of macro-level determinants. Our findings indicate the existence of an intra-regional heterogeneity in that Southern and Western African states exhibit a more significant negative impact on environmental pollution than Eastern Africa. These results remain robust for alternative proxies of green sustainability. We offer valuable insights for policymakers to promote sustainability through inclusive financial practices and policies in Sub-Saharan Africa. |
| Keywords: | Environmental Pollution Index, Financial Inclusion Index, Green Sustainability, Sub-Saharan Africa (SSA), System Generalized Methods of Moments (GMM) |
| JEL: | C23 E44 F64 K32 O55 Q43 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:fau:wpaper:wp2024_23&r= |
| By: | Frank, David; Scheidler, Viktoria; Schmid, Eva |
| Abstract: | Es ist eine Herausforderung und häufig noch eine methodische Leerstelle in Beteiligungsprozessen, wie unterschiedliches Wissen zusammengeführt und der Stand der Diskussion aufgearbeitet und geteilt werden kann. In diesem Paper zeigen wir auf, wie die Methode der Argumentationskartierung dazu genutzt werden kann, in einem transdisziplinären Forschungsprojekt Zielkonflikte und Lösungsstrategien zu identifizieren. Im Rahmen des Forschungsprojektes "Dezentrale Energiewende zwischen sozialer Gerechtigkeit, Systemkosten und Umweltschutz - Zielkonflikte und Lösungsstrategien" (Kurztitel DEZ-ZIELKONFLIKTE) wurde zur Aufarbeitung der Debatte, inwiefern eine dezentrale Energiewende erstrebenswert ist, die Methode der Argumentkartierung angewendet und soll in diesem Papier als Case-Study dienen. Die Case-Sudy zeigt, dass Argumentationslandkarten einen möglichst umfänglichen und geordneten Überblick über eine Debatte geben und damit die Brennpunkte der Debatte sichtbar machen, so dass Lösungsstrategien und wohlinformierte Entscheidungen erarbeitet werden können. |
| Abstract: | It is a challenge and often still a methodological gap in participation processes how different knowledge can be brought together and how the status of the discussion can be processed and shared. In this paper, we show how the method of argumentation mapping can be used to identify trade offs and solution strategies in a transdisciplinary research project. As part of the research project "Decentralized energy transition between social justice, system costs and environmental protection - trade offs and solution strategies" (short title DEZ-ZIELKONFLIKTE), the argument mapping method was used to examine the debate on the extent to which a decentralized energy transition is desirable and will serve as a case study in this paper. The case study shows how argumentation maps provide a comprehensive and organized overview of the debate and thus make the focal points visible so that solution strategies and well-informed decisions can be developed. |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wzbdms:295744&r= |
| By: | Yanqiao Deng; Minda Ma |
| Abstract: | Assessing the energy and emissions of representative plug-in hybrid electric vehicle (PHEV) model operations is crucial for accelerating carbon neutrality transitions in China's passenger car sector. This study makes the first attempt to create a bottom-up model to measure the real-world energy use and carbon dioxide (CO2) emissions of China's top twenty selling PHEV model operations across different geographical regions during 2020-2022. The results indicate that (1) the actual electricity intensity for the best-selling PEHV models (20.2-38.2 kilowatt-hour [kWh]/100 kilometers [km]) was 30-40% higher than the New European Driving Cycle (NEDC) values, and the actual gasoline intensity (4.7 to 23.5 liters [L]/100 km) was 3-6 times greater than the NEDC values. (2) The overall energy consumption of the best-selling models exhibited variations among various geographical regions, and the total gasoline equivalent was twice as high in southern China (1283 mega-liters, 2020-2022) than in northern China and the Yangtze River Middle Reach. (3) The top-selling models emitted 4.9 mega-tons (Mt) of CO2 nationwide from 2020-2022, 1.9 Mt from electricity and 3 Mt from gasoline. In northern China, carbon emissions per vehicle were more than 1.2 times greater than those in other regions. Furthermore, targeted policy implications for expediting the carbon-neutral transition within the passenger vehicles are proposed. Overall, this study reviews and compares national and regional benchmark data and performance data for PHEV operations. Its objective is to bolster national decarbonization initiatives, ensuring low emissions and expediting the transportation sector's transition toward a net-zero era. |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2405.07308&r= |
| By: | Lorenzo Caliendo; Marcelo Dolabella; Mauricio Moreira; Matthew Murillo; Fernando Parro |
| Abstract: | We study the role of trade policy in one of the most pressing climate policy challenges that developing countries face: meeting voluntary emission restraints (VERs). To do so, we develop a general equilibrium trade model that extends Caliendo and Parro (2015) in three dimensions. First, we model extractive sectors that feature a continuum of producers with heterogeneous productivity, demanding labor, dirty natural resources, and intermediate goods from all industries. Second, we consider that production generates different amounts of emissions across sectors and countries, and households experience disutility from carbon emissions, modeled as a pure externality as in Shapiro (2021). Third, we model a general set of taxes along the value chain—on production, intermediate and final consumption, and on labor—which allows for different options of carbon taxes and tariffs that impact emissions and other outcomes in general equilibrium. In our quantitative analysis, we focus on two groups of policies: those that are in the traditional realm of trade policy, related to tariff reform and potential emission biases; and those that combine a Pigouvian carbon tax with border adjustments. Our main findings point to a nuanced role of trade policy as a climate policy in developing economies. Although it is effective in mitigating emission leakages, such leakages are small in magnitude, and border adjustment tariffs have collateral effects in terms of trade declines, and in many countries, welfare losses. These findings contrast with the implications of climate policy in large economies, where emission leakages are much more significant and the impact on trade less costly. Our main results also indicate that carbon taxes and tariffs will not be enough for most developing countries to meet their net-zero emission targets dictated by the VERs. |
| JEL: | A10 F13 F18 F6 H23 Q5 Q56 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32459&r= |
| By: | Minh Ha-Duong (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École des Ponts ParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | As Vietnam pursues its ambitious goal of transitioning from a middle-income to a higher-income country while simultaneously moving towards a zero-carbon society, it faces a complex set of challenges. This article delves into these challenges, focusing on the technological, infrastructural, financial and collaborative needs of this transition. |
| Date: | 2024–04–20 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04567669&r= |
| By: | Lukas Endres (Macroeconomic Policy Institute (IMK)) |
| Abstract: | Ab 2027 ist mit der Einführung des EU-ETS 2 für die Sektoren Verkehr und Wärme mit deutlich höheren Preisen für CO2-Zertifikate zu rechnen. Infolge dürften die Energiekosten für viele private Haushalte erheblich steigen. Als Kompensationsmechanismus hat die Bundesregierung die Auszahlung einer Pro-Kopf Pauschale angekündigt. Dieser Policy Brief zeigt anhand der Einkommens- und Verbrauchsstichprobe, dass sich hierdurch vor allem Haushalte in unteren Einkommensgruppen und jene mit mittleren Verbräuchen umfassend entlasten lassen. Insbesondere für Haushalte mit höheren Verbräuchen in der Mitte der Einkommensverteilung bleibt die Belastung relativ zum Einkommen jedoch hoch. Im Bereich der Wärmeenergie sind vor allem Haushalte mit Wohneigentum stärker betroffen, während Haushalte in Mietwohnungen von der CO2-Kostenaufteilung profitieren. Eine deutlich höhere Belastung in beiden Sektoren verzeichnen außerdem Haushalte in ländlichen Regionen. Insgesamt sind die Verbräuche von Kraftstoffen und Wärmeenergie und somit die Kosten durch die CO2-Bepreisung sehr ungleich verteilt. Ein pauschales Klimageld reicht daher für viele Haushalte nicht aus, um teils hohe finanzielle Belastungen zu kompensieren. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:imk:pbrief:161-2023&r= |
| By: | Fix, Blair |
| Abstract: | When it comes to our sustainability problems, striving for greater resource efficiency seems like an obvious solution. For example, if you buy a new car that’s twice as efficient as your old one, it should cut your gasoline use in half. And if your new computer is four times more efficient than your last one, it should cut your computer’s electric bill fourfold. In short, boosting efficiency seems like a straightforward way to reduce your use of natural resources. And for you personally, efficiency gains may do exactly that. But collectively, efficiency seems to have the opposite effect As technology gets more efficient, we tend to consume more resources. This backfire effect is known as the ‘Jevons paradox’, and it occurs for a simple reason. At a social level, efficiency is not a tool for conservation; it’s a catalyst for technological sprawl. Here’s how it works. As technology gets more efficient, it cheapens the service that it provides. And when services get cheaper, we tend to use more of them. Hence, efficiency ends up catalyzing greater consumption. Take the evolution of computers as an example. The first computers were room-sized machines that gulped power while doing snail-paced calculations. In contrast, modern computers deliver about a trillion times more computation for the same energy input. Now, in principle, we could have taken this trillion-fold efficiency improvement and reduced our computational energy budget by the same amount. But we didn’t. Instead, we took these efficiency gains and invested them in technological sprawl. We took more efficient computer chips and put them in everything — phones, TVs, cars, fridges, light bulbs, toasters … not to mention data centers. So rather than spur conservation, more efficient computers catalyzed the consumption of more energy. In this regard, computers are not alone. As you’ll see, efficiency backfire seems to be the rule rather than the exception. Far from delivering a cure for our sustainability woes, efficiency gains appear to be a root driver of the over-consumption disease. |
| Keywords: | efficiency, energy, Jevons Paradox |
| JEL: | P00 Q4 B1 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:295211&r= |
| By: | Winikoff, Justin B.; Maguire, Karen |
| Abstract: | A significant portion of energy production in the United States takes place on farmland, which can have substantial economic implications for the farmers who host such developments. This report analyzes energy payments made to farmers for the production of oil, natural gas, and wind energy on their land. The authors used 10 years of data (2011–20) from the USDA’s Agricultural Resource Management Survey (ARMS) in their analysis. Results show that 3.5 percent of farm operations received energy payments and that the average annual payment to the operators was more than $30, 000 (in 2020 dollars), contributing substantially to farm household income and exceeding government payments to these operations. Energy payments were more common in counties producing oil and natural gas than in those with wind energy development. Larger farms were significantly more likely to receive energy payments and received higher payments on average. Further, Hispanic producers and those with less education were significantly less likely to receive energy payments. Although the average energy payment varied by ethnicity and education status, this report did not find a statistically significant difference after accounting for farm location and size. |
| Keywords: | Land Economics/Use, Resource /Energy Economics and Policy |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uersib:342468&r= |
| By: | Kleeman, Michael J. PhD; Wu, Shenglun |
| Abstract: | Lack of a strong reduction in ambient ozone (O3) concentrations during reduced traffic periods associated with COVID-19 calls into question the conventional wisdom that mobile sources dominate air pollution in California. Fossil-fueledmmotor vehicles emit oxides of nitrogen (NOx) and volatile organic compounds (VOCs) that are precursors to O3 formation, but the chemical reaction system that forms O3 is complex. The ratio of NOx/VOCs determines if the O3 formation regime is NOx-limited (reducing NOx reduces O3) or NOx-rich (reducing NOx increases O3). This project developed new methods to directly measure O3 chemistry in the atmosphere and applied them over long-term campaigns in multiple California cities to quantify traffic contributions to O3 formation. A seasonal-cycle was observed of NOx-rich O3 chemistry during cooler months trending toward NOx-limited chemistry in warmer months. Superimposed on this seasonal cycle was a spatial pattern of NOx-rich chemistry in dense urban cores and NOx-limited chemistry in areas downwind of urban cores. Chemistry-based models with source tagging were also developed to better understand these trends. Seasonal changes to biogenic VOC and gasoline evaporative VOC emissions likely explain the seasonal changes in O3 formation chemistry. Reduced traffic emissions in March 2020 did not reduce O3 concentrations because the chemistry was heavily NOx-rich during the spring season. Extended model predictions suggest that similar traffic reductions could have reduced ambient O3 concentrations in small and intermediate cities if they would have occurred in summer months. Traffic reductions alone would not be sufficient to reduce O3 concentrations in the urban cores of larger cities. Reduced emissions from transportation sources can improve air quality in California, but transportation sources no longer exclusively dominate O3 formation. Future emissions controls should be coordinated across multiple sectors (including transportation) to achieve their objectives. |
| Keywords: | Engineering, Air quality, nitrogen oxides, ozone, vehicle emissions, traffic volume |
| Date: | 2023–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt0sk24033&r= |
| By: | Ankel-Peters, Jörg; Schmidt, Christoph M. |
| Abstract: | The so-called credibility revolution dominates empirical economics, with its promise of causal identification to improve scientific knowledge and ultimately policy. By examining the case of rural electrification in the Global South, this opinion paper exposes the limits of this evidencebased policy paradigm. The electrification literature boasts many studies using the credibility revolution toolkit, but at the same time several systematic reviews demonstrate that the evidence is divided between very positive and muted effects. This bifurcation presents a challenge to the science-policy interface, where policymakers, lacking the resources to sift through the evidence, may be drawn to the results that serve their (agency's) interests. The interpretation is furthermore complicated by unresolved methodological debates circling around external validity as well as selective reporting and publication decisions. These features, we argue, are not particular to the electrification literature but inherent to the credibility revolution toolkit. |
| Keywords: | Energy access, evidence-based decision-making, systematic reviews, meta-science |
| JEL: | O13 D78 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:i4rdps:123&r= |
| By: | Honma, Satoshi; Ushifusa, Yoshiaki; Taghizadeh-Hesary, Farhad; Okamura, Soyoka; Vandercammee, Lilu |
| Abstract: | This study measured the environmental and energy efficiency of 47 regions in Japan for the period 2005–2017, which was before and after the Great East Japan Earthquake (GEJE) in March 2011, using the slacks-based measure data envelopment analysis model. Our model had comprehensive inputs and outputs: seven inputs (labor, capital, coal, oil, gas, renewables, and electricity), one desirable output (gross regional product), and four undesirable outputs (CO2, SOx, NOx, and dust). In our results, before GEJE, the mean environmental efficiency deteriorated from 0.529 in 2005, 0.518 in 2008, 0.501 in 2011, and 0.464 in 2014 but improved to 0.527 in 2017. Iwate, Miyagi, and Fukushima in the Tohoku region were severely damaged by the earthquake, but these areas were inefficient even before the disaster. Tokyo's environmental efficiency deteriorated from unity in 2005 and 2008 to 0.839 in 2008 and 0.698 in 2011 and then improved back to unity in 2017. We also presented potential reduction ratios for energy and undesirable outputs. To examine the determinants of efficiency, we regressed the efficiency on influencing factors using the panel Tobit model. Gross regional product per capita and tertiary industry share were positively correlated with environmental efficiency. This implies that the development of the service sector is more helpful for transitioning to a sustainable society compared with other sectors. |
| Keywords: | Environmental efficiency; Data envelopment analysis; Fukushima nuclear disaster; Japan |
| JEL: | Q0 Q4 Q53 Q54 |
| Date: | 2024–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120945&r= |
| By: | Parinitha R. Sastry; Emil Verner; David Marques Ibanez |
| Abstract: | We use administrative credit registry data from Europe to study the impact of voluntary lender net zero commitments. We have two sets of findings. First, we find no evidence of lender divestment. Net zero banks neither reduce credit supply to the sectors they target for decarbonization nor do they increase financing for renewables projects. Second, we find no evidence of reduced financed emissions through engagement. Borrowers of net zero banks are not more likely to set decarbonization targets or reduce their verified emissions. Our estimates rule out even moderate-sized effects. These results highlight the limits of voluntary commitments for decarbonization. |
| JEL: | G2 G21 G3 Q5 |
| Date: | 2024–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32402&r= |
| By: | Simon J. Bolz; Fabrice Naumann; Philipp M. Richter |
| Abstract: | Expanding on a general equilibrium model of offshoring, we analyze the effects of a unilateral emissions tax increase on the environment, income, and inequality. Heterogeneous firms allocate labor across production tasks and emissions abatement, while only the most productive can benefit from lower labor and/or emissions costs abroad and offshore. We find a non-monotonic effect on global emissions, which decline if the initial difference in emissions taxes is small. For a sufficiently large difference, global emissions rise, implying emissions leakage of more than 100%. The underlying driver is a global technique effect: While the emissions intensity of incumbent non-offshoring firms declines, the cleanest firms start offshoring. Moreover, offshoring firms become dirtier, induced by a reduction in the foreign effective emissions tax in general equilibrium. Implementing a BCA prevents emissions leakage, reduces income inequality in the reforming country, but raises inequality across countries. |
| Keywords: | offshoring, emissions leakage, environmental policy, BCA, heterogeneous firms, income inequality |
| JEL: | F18 F12 F15 Q58 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11096&r= |
| By: | Rodica Loisel (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); Lionel Lemiale (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Adrien Bidaud (IN2P3 - Institut National de Physique Nucléaire et de Physique des Particules du CNRS) |
| Abstract: | This paper depicts the power system adequacy with respect to nuclear strategies by coupling investment with dispatching. The long-term energy model POLES simulates the Paris Agreement worldwide and is soft-linked with a power market model applied to France, EcoNUK. The nuclear flexibility is described by cycling frequency and amplitude, constrained by reactors minimum rated power and half-hour ramping rates. Results in 2050 show that the French power system made of 26% nuclear and 71% renewables in POLES needs deeper and longer flexibility with nuclear and gas in EcoNUK, due mainly to higher granular time-steps than the prospective model; and that reactors perform more deep cycles than allowed by their license (230 instead of 200). We show that scenarios with high shares of renewables build on the arbitrage between nuclear and gas, notably during peak loads in winter and night periods. Meeting the double target to reduce nuclear and carbon emissions requires more renewables, hence significant gas and nuclear power for adequacy, facing the dilemma nuclear versus emissions. Coupling short-term operation with long-term investment indicates that nuclear flexibility varies with the time-step of intermittency modeling, so scenarios need to include reactors constraints to reach an informed decision on renewables and nuclear. |
| Keywords: | Scenarios, Nuclear, Load-following, Long-term investment, Short-term operation |
| Date: | 2022–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04568072&r= |
| By: | Eduardo Cavallo (Inter-American Development Bank); Ana Cepeda (International Monetary Fund); Ugo Panizza (Geneva Graduate Institute & CEPR) |
| Abstract: | This paper studies the interplay between environmental performance and financial valuation of firms in Latin America and the Caribbean. We provide insights into how environmental considerations are integrated into financial decision-making and investor behavior by analyz-ing the stock market reaction to environmental news of firms with different levels of carbon emission intensity. We find that high emission intensity firms tend to underperform after the release of environmental damage news. Our baseline estimates indicate that, after the release of such news, firms at the 75th percentile of the distribution of emission intensity experience stock returns that are 17% lower than those of firms at the 25th percentile of the distribution of emission intensity. These results suggest that investors care about and price carbon risk, but only when this risk is salient. |
| Keywords: | Carbon emissions; Climate change; Environmental news; Stock returns |
| JEL: | G12 G14 G18 G32 G38 Q54 |
| Date: | 2024–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:gii:giihei:heidwp08-2024&r= |
| By: | Arnold Khoza; Mokgabiso Tshenkeng; Sumaiya Sidat Kgotso Morema |
| Abstract: | Despite ongoing weakness, GDP growth has been unexpectedly higher during the first half of 2023 as the mining, manufacturing and finance sectors outperformed expectations. Meanwhile, on the demand side, better than expected growth from government expenditure and private sector gross fixed capital formation was realised. Better-than-expected growth outcomes can be ascribed to firms adapting to load-shedding; Eskom reducing its planned maintenance to improve generation capacity and relying more on its Open Cycle Gas Turbines; and increases in self-generating rooftop solar power and wind energy. This occurred amidst trading partner growth resilience. Looking ahead into 2024, GDP growth outlook remains weak, but risks to the outlook are still balanced. |
| Date: | 2024–04–25 |
| URL: | http://d.repec.org/n?u=RePEc:rbz:oboens:11052&r= |
| By: | Tang, Cheng Keat; Gibbons, Stephen |
| Abstract: | Overhead electrical power lines and pylons have long raised concerns regarding the effects of electromagnetic fields on health, noise pollution and the visual impact on rural landscapes. These issues are once again salient because of the need for new lines to connect sources of renewable energy to the grid. In this study we provide new evidence on the cost implied by these externalities, as revealed in house prices. We use a spatial difference-in-difference approach that compares price changes in neighbourhoods that are close to overhead power-lines, before and after they are constructed, with price changes in comparable neighbourhoods further away. Our findings suggest that the construction of new overhead pylons reduces prices by 3.9% for properties up to 1500 meters away, suggesting the impacts extend further than previously estimated. |
| Keywords: | externalities; overhead power lines; pylons; house prices; revealed preferences; Centre for Economic Performance |
| JEL: | R32 Q48 Q51 |
| Date: | 2024–05–03 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122635&r= |
| By: | Ricciutelli, Francesco |
| Abstract: | Recent research unveiled the heterogeneous effects of rising energy prices for low-income and high-income European households, as they tend to purchase distinct consumption baskets. We explore the effects of energy inflation on consumption inequality in a Two-Agent New Keynesian (TANK) model with an exogenous energy sector, and look for the optimal monetary policy response to an energy price shock. We find that rising energy prices widen consumption inequality through the expansions of inflation and income gaps. The effects of a maximizing welfare monetary policy are partially approximated by a core inflation targeting Taylor rule. |
| Keywords: | TANK Models; Energy; Consumption Inequality; Monetary Policy |
| JEL: | E52 I14 Q43 |
| Date: | 2024–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120899&r= |
| By: | Ouassim Manout (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique); Azise-Oumar Diallo (LAET - Laboratoire Aménagement Économie Transports - UL2 - Université Lumière - Lyon 2 - ENTPE - École Nationale des Travaux Publics de l'État - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Autonomous vehicles will be one of the most disruptive technologies of the automative industry. Their wider implications on society are expected to be considerable, even if these implications are still under debate. Meanwhile, various stakeholders, including cities and tech companies, are launching different AV pilot projects to test and help boost the technology readiness level. This research assesses some of the impacts of three AV mobility scenarios: private, shared, and pooled AVs in Lyon, France. An agent-based simulation framework is used (MATSim). Results suggest that AV services can reshuffle existing transportation dynamics by attracting a significant share of travel demand, especially from public transport and walking. If not regulated, these services can produce substantial excess travel distances and increase energy consumption and emissions of the transportation system. In this regard, pooled robotaxis are the least impactful introduction scenario of AVs compared to non-pooled robotaxis or private AVs. |
| Keywords: | Autonomous vehicle, Shared autonomous vehicle, Pooled autonomous vehicle, Robotaxi, Impact, Agent-based model |
| Date: | 2023–06–14 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04570546&r= |
| By: | Sirini Jeudy-Hugo; Luca Lo Re; Coline Pouille; Sofie Errendal |
| Abstract: | The Paris Agreement is underpinned by Nationally Determined Contributions (NDCs) in which Parties set out how they plan to support the Agreement’s long-term temperature goal. Parties are to submit their next NDCs by early 2025, informed by the first global stocktake (GST1). The GST1 sets out key signals and a series of mitigation focused calls in line with 1.5°C pathways that can guide the next generation of NDCs. This paper explores how Parties can prepare enhanced NDCs that take forward GST1 outcomes on mitigation and relevant provisions on NDCs, building on lessons learned from successive NDCs and available follow-up opportunities to support this process. Insights from experiences highlight the interlinkages between enhancing NDC ambition and implementation. Ambitious NDCs underpinned by robust implementation plans and accompanying investment plans can ensure NDCs are action oriented, implementation ready and investable. At the same time, adopting whole-of-government, whole-of-society approaches to NDCs can foster a sense of national ownership and increase social acceptance, leading to more ambitious NDCs and support subsequent implementation. The paper also explores potential guidance that could be relevant for negotiations on NDC features in 2024. While recognising the nationally determined character of NDCs, Parties could use these negotiations to provide clarity on new issues that have emerged since the Paris Agreement was adopted and on existing elements that could benefit from clarification. When addressing negotiations on NDC features, Parties may also want to consider a longer-term perspective beyond the next NDCs and links with other relevant negotiation processes on reporting and transparency. |
| Keywords: | Climate change, Global stocktake, NDCs, Paris Agreement, UNFCCC |
| JEL: | F53 Q56 Q58 Q54 |
| Date: | 2024–05–27 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2024/01-en&r= |
| By: | Bennæs, Anders; Skogset, Martin; Svorkdal, Tormod; Fagerholt, Kjetil; Herlicka, Lisa; Meisel, Frank; Rickels, Wilfried |
| Abstract: | Carbon capture and storage (CCS) for industrial emission point sources is one of the potential instruments to achieve net-zero carbon dioxide (CO2) goals. However, emission point sources and storage formations are often far from each other, which requires capable CO2 transportation infrastructure. While pipeline transportation promises low cost for high and stable flows of CO2, ship transportation may be more expensive but also more flexible with regards to transport quantities and storage locations. Here, we present a mixed integer programming (MIP) model to provide decision support for a CCS Supply Chain Design Problem (CCS-SCDP) with the goal of minimizing total supply chain costs. We apply the model to four future CO2 supply scenarios, capturing CO2 from German industrial sources and bringing them to the Northern Lights unloading port in Kollsnes, Norway, for storage in a submarine geological formation. Our analysis reveals that the fraction of transportation costs of total supply chain costs drop considerably from 22 to 10 percent by economies of scale if annual capture volume increases. For low capture volumes, a ship-based solution is cheaper, while an offshore pipeline solution is favored for larger capture volumes. Accordingly, the potential gains from economies of scale in a pipeline-based solution must be balanced against potential lock-in effects in the investment decision for a CCS supply chain. |
| Keywords: | Carbon capture and storage, Supply chain design, Pipeline network, Ship transportation, German–Norwegian case study, Mixed integer programming |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkie:295104&r= |
| By: | Forero Buitrago, Juan Camilo (Universidad de los Andes) |
| Abstract: | El propósito de este trabajo de investigación es identificar el efecto y las relaciones que pueden ocurrir sobre la inflación, el crecimiento económico y el consumo de combustibles fósiles (gasolina y diésel), a través del mecanismo de estabilización de precios de los combustibles que tiene Colombia, el Fondo de Estabilización de Precios de los Combustibles (FEPC). Se estima un modelo autorregresivo vectorial estructural (SVAR, por sus siglas en inglés) para cada combustible fósil utilizando datos desde marzo de 2010 hasta agosto de 2023. En particular, a lo largo de este documento será posible resaltar el efecto positivo que el subsidio implícito entregado a través del FEPC ha tenido sobre el poder adquisitivo de los hogares y el crecimiento económico del país, así como la diferencia de estos efectos entre los subsidios implícitos para gasolina y diésel. Simultáneamente, este estudio se cuantifica el impacto de este subsidio en el consumo de combustibles fósiles, proporcionando un análisis integral de los efectos que ejerce. |
| Keywords: | precios de los combustibles; inflación; crecimiento económico; consumo de combustible; SVAR |
| JEL: | C32 E31 O40 Q43 |
| Date: | 2024–05–28 |
| URL: | http://d.repec.org/n?u=RePEc:col:000089:021141&r= |