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on Energy Economics |
| By: | Berkouwer, Susanna; Biscaye, Pierre; Hsu, Eric; Kim, Oliver; Lee, Kenneth; Miguel, Edward; Wolfram, Catherine |
| Abstract: | In response to the Covid-19 crisis, 186 countries implemented direct cash transfers to households, and 181 introduced in-kind programs that lowered the cost of utilities such as electricity, water, transport, and mobile money. During times of crisis, do people prefer in-kind transfers or cash, and why? In this paper, we compare electricity transfers against a benchmark of cash transfers (mobile money) among 2000 rural and urban residents of Kenya with pre-paid electricity meter connections. We offer participants an incentivized choice between electricity transfers or mobile money, totaling approximately USD 10 to 15, and then implement their choice over three months. We generate three main findings. First, participants overwhelmingly prefer cash, with three-quarters of participants opting for mobile money even when offered electricity tokens with a cash value that is 40 percent higher, possibly due to the flexibility in expenditures or credit constraints. Second, despite relatively low baseline electricity consumption, preference for cash is slightly lower in rural areas, possibly due to higher transaction costs for purchasing electricity, lower mobile money penetration, or savings constraints. Third, electricity tokens transfers generate a larger increase in electricity consumption than equivalent cash transfers, suggesting a role for mental accounting; however, we estimate no impact of either electricity or cash transfers on a broad set of socioeconomic outcomes. These patterns suggest that mobile money transfers generate larger welfare gains than electricity credit, at least in settings with high mobile money penetration. |
| Keywords: | Economics, Applied Economics, Clinical Research, Development economics, Cash transfers, Electricity subsidies, Government programs, Utility subsidies, Kenya, Electrical and Electronic Engineering, Mechanical Engineering, Energy, Banking, finance and investment, Applied economics, Econometrics |
| Date: | 2023–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:econwp:qt77q3w4sm&r= |
| By: | Jinapor, John Abdulai; Abor, Joshua Yindenaba; Graham, Michael |
| Abstract: | This paper examines the potential impact of energy consumption and foreign direct investment (FDI) on inclusive growth in 32 Sub-Saharan Africa (SSA) countries from 2000 to 2019. The results from the 2-stage system generalised method of moment (GMM), reveal that energy consumption induces inclusive growth. The results also show a substantial impact of non-renewable energy, relative to renewable energy, on inclusive growth. Additionally, the results further reveal that FDI has a non-linear relationship with inclusive growth, where FDI dampens inclusive growth to a certain point and begins to induce it after that point. Moreover, FDI effectively forms synergies with energy consumption towards promoting inclusive growth in SSA. The interactive term results revealed that FDI forms synergies with both renewable and non-renewable energy to promote inclusive growth in SSA. We recommend that African leaders focus on attracting FDIs towards financing their energy needs, particularly in the area of low-carbon or renewable energy sources, by leveraging private sector capital investments to achieve inclusive growth whilst attaining sustainable development. |
| Keywords: | SSA; Renewable Energy Consumption; Non-Renewable Energy Consumption; FDI; Inclusive Growth |
| JEL: | F20 O20 Q4 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121143&r= |
| By: | Ofori, Isaac K.; Gbolonyo, Emmanuel Y.; Ojong, Nathanael |
| Abstract: | Tracking the progress of countries in inclusive green growth (IGG) is crucial for shaping effective sustainable development policies. However, comprehensive IGG data is often inaccessible. Accordingly, rigorous empirical contributions in this direction in the context of Africa remain sparse. To address this, we computed IGG scores for 22 African countries from 2000-2020. Our data reveal that only nine of these countries are achieving green and inclusive growth. This dataset equips researchers and institutions to assess IGG progress and identify pathways that African governments can leverage to promote sustainable development. |
| Keywords: | Africa, Inclusive green growth, IGG, Sustainable Development |
| JEL: | O55 Q01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:298863&r= |
| By: | Ruhinduka, Remidius D.; Bensch, Gunther; Selejio, Onesmo; Lokina, Razack Bakari |
| Abstract: | Increasing electricity access remains a challenge, particularly in rural areas of sub-Saharan Africa. This study examines the case of Tanzania, where rural connection rates remain low even among households residing 'under the grid', and this despite substantial government subsidies for household connections. Using data from 1774 rural households living within reach of the electricity grid, we investigate correlates of the low grid electricity uptake. We find that proxies for wealth, including housing characteristics, are positively associated with connection status, while social network variables are less so. Capacity to pay thus appears to remain a major barrier, and in-house wiring costs emerge as a significant expense unaccounted for by the subsidy scheme, exceeding the cost of grid connection by a factor of eight. We also find that similar mechanisms govern choices between grid electricity and traditional or solar energy sources. Together, these findings inform the ongoing policy debate regarding on-grid versus off-grid energy solutions. |
| Abstract: | Die Verbesserung des Zugangs zu Elektrizität stellt nach wie vor eine Herausforderung dar, insbesondere in den ländlichen Gebieten in Afrika südlich der Sahara. Diese Studie untersucht die Situation in Tansania, wo Anschlussquoten in ländlichen Gebieten selbst bei den Haushalten, die "unter dem Netz" wohnen, auf niedrigen Niveaus verharren- und dies trotz erheblicher staatlicher Subventionen für Haushaltsanschlüsse. Mittels Daten von 1774 ländlichen Haushalten, die innerhalb der Reichweite des Stromnetzes leben, untersuchen wir Faktoren, die mit der geringen Netzstromnutzung korrelieren. Wir stellen fest, dass Indikatoren für Wohlstand, einschließlich Wohnungsmerkmale, positiv mit dem Anschlussstatus im Zusammenhang stehen, während dies weniger stark auf Variablen zum sozialen Umfeld zutrifft. Die Zahlungsfähigkeit scheint somit weiterhin ein großes Hindernis darzustellen. In diesem Zusammenhang erweisen sich die Kosten für die hausinterne Verkabelung als erhebliche, durch das Subventionsprogramm nicht abgedeckte Ausgaben, die die Kosten für den Netzanschluss um das Achtfache übersteigen. Wir stellen auch fest, dass ähnliche Mechanismen die Wahl zwischen Netzstrom und traditionellen oder solaren Energiequellen bestimmen. Diese Ergebnisse liefern Informationen für die laufende politische Debatte über netzgebundene und netzunabhängige Energielösungen. |
| Keywords: | Electrification, household decision, electricity access, Tanzania, energy transition |
| JEL: | D12 O13 O33 Q41 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:299233&r= |
| By: | Maru, Lucy; Makambi, Steve Anyona |
| Abstract: | One of the most important steps towards a greener economy is assessing the path through which climate risks are internalized in to bank portfolios. Aligned with literature on market risks and credit risks emanating from climate risk exposure, this paper sought to assess the feedback effect between banking sector performance and climate risk and identify the transmission pathway of climate risk to banking sector performance. The paper employed conditional process analysis. Using meteorological data, data on weather disasters, bank level data and interest rate between 2011- 2022, the study found that: - i) there exists a relationship between climate risk and bank performance to the extent that changes in interest rate spread are mediated by climate disasters having been moderated by temperature variation. ii) increase in non-performing loans leads to decrease in interest rate spread. Therefore, this paper persuades policy makers to adjust risks to include climate related risks and develop risk models that capture climate related risks in risk pricing. Additionally, the paper recommends that the regulator may develop an adaptable reporting framework to transition bank portfolios to a green and financially sustainable path. |
| Keywords: | Climate risk, Interest rate spread, non-performing loans, Carbon transition |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kbawps:297994&r= |
| By: | Bensch, Gunther; Grimm, Michael |
| Abstract: | Energy-efficient biomass cookstoves and small solar systems play a vital role in the transition to clean energy. Despite their affordability and scalability, their uptake remains low among households in sub-Saharan Africa. This paper examines the potential contribution of individual-specific behavioural factors to the under-adoption of these technologies. Drawing on data from real-purchase offers in rural Rwanda and Senegal, the analysis focuses on how the willingness to pay for the technologies varies with behavioural constraints including risk aversion, innovation resistance, time preferences, and beliefs. Our results confirm that these factors carry relevant variation that helps understanding the purchase decision process. These findings contribute to a better comprehension of consumer adoption behaviour of innovative consumer goods at the base of the pyramid, providing valuable insights for suppliers entering these markets and informing policy interventions aimed at facilitating households' transition to clean energy. |
| Abstract: | Energieeffiziente Biomasse-Kochherde und Kleinsolarsysteme sind entscheidende Übergangstechnologien bei der Umstellung auf saubere Energieträger. Obwohl sie erschwinglich und skalierbar sind, sind sie in ländlichen Gegenden Afrikas südlich der Sahara nach wie wenig verbreitet. In diesem Beitrag wird untersucht, inwieweit individualspezifische Verhaltensfaktoren zur geringen Verbreitung dieser Technologien beitragen. Auf der Grundlage von Daten aus realen Kaufangeboten im ländlichen Ruanda und Senegal konzentriert sich die Analyse darauf, wie die Bereitschaft, für die Technologien zu zahlen, mit Faktoren wie Risikoaversion, Innovationsresistenz, Zeitpräferenzen und Überzeugungen variiert. Unsere Ergebnisse bestätigen, dass diese Faktoren zum Verständnis des Kaufentscheidungsprozesses beitragen. Diese Ergebnisse liefern ein besseres Verständnis des Kaufverhaltens von armen Verbrauchern im Hinblick auf innovative Konsumgüter bei. Sie liefern wertvolle Erkenntnisse für Anbieter, die diese Märkte erschließen, und liefern Informationen für Politikmaßnahmen, die darauf abzielen, den Übergang von Haushalten zu sauberer Energie zu erleichtern. |
| Keywords: | Base of the pyramid, energy transition, willingness to pay, household decision, behaviour |
| JEL: | D12 O12 O13 O33 Q41 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:rwirep:298848&r= |
| By: | Kaur, S.; Pollitt, M. G. |
| Abstract: | Stabilization of prices has been an important element of achieving food price stability in most countries — both developing and developed, including India. In this paper, we rethink the ex-tension of the price stabilization as a compensation strategy to stimulate change in favour of low-water crops in Punjab. Groundwater facilitated impressive agricultural production, particularly record increases in wheat and rice productivity in Punjab, but also accelerated depletion of aquifers. Free electricity and negligible pumping costs aggravated the problem and the resultant policy failure encouraged unregulated use of groundwater, lower relative profitability of water efficient crops and a shift in favour of water intensive crops. Questions are now being raised about the sustainability of this intensive agriculture strategy. The rapidly depleting water table level and soil deterioration from overuse of fertilizers and pesticides are attributed to farmers’ preference for high-water rice variety. Drawing from the Payment for Ecosystem Services scheme, this stated preference experiment investigates farmers’ preferences to change high-water rice variety by low-water variety with compensatory payments. Results show that majority of farmers are willing to accept compensation for substitution by low-water intensive rice variety. In addition, the scheme can be accompanied by significant willingness to pay for electricity, but the WTP is contingent upon the nature of electricity charge. |
| Keywords: | Agriculture, energy water nexus, electricity, discrete choice, Punjab, India |
| JEL: | O13 Q1 Q4 Q5 Q12 Q24 Q25 Q28 Q48 Q57 |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2433&r= |
| By: | Adrian Odenweller; Falko Ueckerdt |
| Abstract: | Green hydrogen is critical for decarbonising hard-to-electrify sectors, but faces high costs and investment risks. Here we define and quantify the green hydrogen ambition and implementation gap, showing that meeting hydrogen expectations will remain challenging despite surging announcements of projects and subsidies. Tracking 137 projects over three years, we identify a wide 2022 implementation gap with only 2% of global capacity announcements finished on schedule. In contrast, the 2030 ambition gap towards 1.5{\deg}C scenarios is gradually closing as the announced project pipeline has nearly tripled to 441 GW within three years. However, we estimate that, without carbon pricing, realising all these projects would require global subsidies of \$1.6 trillion (\$1.2 - 2.6 trillion range), far exceeding announced subsidies. Given past and future implementation gaps, policymakers must prepare for prolonged green hydrogen scarcity. Policy support needs to secure hydrogen investments, but should focus on applications where hydrogen is indispensable. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.07210&r= |
| By: | Federica Daniele; Guido de Blasio; Alessandra Pasquini |
| Abstract: | Local opposition to the installation of renewable energy sources is a potential threat to the energy transition. Local communities tend to oppose the construction of energy plants due to the associated negative externalities (the so-called 'not in my backyard' or NIMBY phenomenon) according to widespread belief, mostly based on anecdotal evidence. Using administrative data on wind turbine installation and electoral outcomes across municipalities located in the South of Italy during 2000-19, we estimate the impact of wind turbines' installation on incumbent regional governments' electoral support during the next elections. Our main findings, derived by a wind-speed based instrumental variable strategy, point in the direction of a mild and not statistically significant electoral backlash for right-wing regional administrations and of a strong and statistically significant positive reinforcement for left-wing regional administrations. Based on our analysis, the hypothesis of an electoral effect of NIMBY type of behavior in connection with the development of wind turbines appears not to be supported by the data. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.03022&r= |
| By: | Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Christian Pierdzioch (Department of Economics, Helmut Schmidt University, Holstenhofweg 85, P.O.B. 700822, 22008 Hamburg, Germany); Aviral K. Tiwari (Indian Institute of Management Bodh Gaya, Bodh Gaya, India) |
| Abstract: | We use random forests, a machine-learning technique, to formally examine the link between real gasoline prices and presidential approval ratings of the United States (US). Random forests make it possible to study this link in a completely data-driven way, such that nonlinearities in the data can easily be detected and a large number of control variables, in line with the extant literature, can be considered. Our empirical findings show that the link between real gasoline prices and the presidential approval ratings is indeed nonlinear, and that the former even has predictive value in an out-of-sample exercise for the latter. We argue that our findings are in line with the so-called pocketbook mechanism, which stipulates that the presidential approval ratings depend on gasoline prices because the latter have sizable impact on personal economic situations of voters. |
| Keywords: | Presidential approval ratings, Gasoline price, Random forests, Forecasting |
| JEL: | C22 C53 Q40 Q43 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pre:wpaper:202427&r= |
| By: | Saroj Bhattarai; Arpita Chatterjee; Gautham Udupa |
| 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 non-homothetic 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: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2024-45&r= |
| By: | Ahsanuzzaman,; Eskander, Shaikh; Islam, Asad; Wang, Liang Choon |
| Abstract: | We use a randomized controlled trial in Bangladesh to test three types of non-price energy conservation strategies that influence electricity consumption of households: (i) advice on electricity conservation methods (knowledge treatment); (ii) (median) electricity consumption of others in the suburb (suburb comparison); and (iii) (median) electricity consumption of neighbors (neighbor comparison). We find that providing advice on saving energy could reduce households' electricity consumption and bills significantly. The effects are stronger for advice on electricity conservation methods than neighbor and suburb comparisons. The effects of providing information about own electricity consumption relative to neighbors’ electricity consumption is similar to the effects of giving information about own electricity consumption relative to electricity consumption of households in the same suburb. The effects among households who were inefficient users in neighbor and suburb comparison groups are almost as strong as those in the knowledge treatment group. The effects across all treatment groups become stronger over time as they receive repeated information. |
| Keywords: | electricity consumption; energy efficiency; field experiment; non-price information; social norms |
| JEL: | J1 |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123900&r= |
| By: | Niftiyev, Ibrahim |
| Abstract: | This discussion paper examines the key themes and findings from four major events and three pieces of media content on sustainable development, climate finance and environmental policy. Direct observation and structured notes were used as the main methods. The analysis begins with the webinar “Bridge Building in Baku, ” which highlighted the need for improved quality and quantity of climate finance to support developing countries in their efforts to reduce carbon emissions. It then discusses the comparative perspectives on environmental issues between Azerbaijan and Türkiye, highlighting the need for renewable energy generation to offset environmental deficits. The paper also examines the event “COP29: Opportunities and Challenges for Climate Action, ” which focused on international cooperation and learning from global best practices to address environmental challenges. Finally, the discussion at the event “Green and Circular Economy in the Turkic World” emphasizes the importance of reducing resource dependency and improving energy efficiency in Turkish states. Policy suggestions include creating financial incentives for green technologies, improving public education on sustainability and promoting international cooperation to effectively address environmental challenges. This paper aims to map the intellectual landscape of climate finance and sustainable development and provides insights for policymakers and stakeholders involved in global climate action based primarily on COP29. |
| Keywords: | Azerbaijani economy, climate events, climate change, COP29, renewable energy, sustainable development |
| JEL: | Q20 Q28 Q54 Q57 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:298401&r= |
| By: | Murray Leclair, Emmanuel |
| Abstract: | The economic cost of carbon pricing depends on the ability and incentives of firms to switch towards cleaner fuels. Yet, many fundamental economic forces that drive firms' decisions to use different fuels are unobserved, causing significant uncertainty over the effectiveness of carbon policies. In this paper, I propose a new dynamic production model with multidimensional unobserved heterogeneity that underly technology differences and captures how firms' fuel choices respond to price changes. These differences cause heterogeneity in abatement costs, which generates heterogeneous responses to carbon pricing. Leveraging minimal assumptions about optimal input choice and the technology frontier, I quantify the model from a detailed panel of Indian steel establishments. Based on these estimates, implementing a carbon tax equivalent to 2, 000 INR/ton (25 USD/ton) of carbon dioxide equivalent leads to a 70% reduction in emissions. But only 18% of this reduction comes from fuel-switching within existing firms. I find that the larger reductions come from reallocation of output across firms (58%) and costly reduction in aggregate output (24%). Substantial heterogeneity in the fuel efficiency of existing furnaces coupled with the limited geographical reach of natural gas pipelines towards high-emission firms explains the prevalence of output reallocation relative to fuel switching. |
| Keywords: | Firm dynamics, input choice, fuel efficiency, production function, climate change |
| JEL: | H23 L11 L61 Q41 Q52 |
| Date: | 2024–04–15 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121139&r= |
| By: | Sugandha Srivastav; Michael Zaehringer |
| Abstract: | The combustion of coal, the most polluting form of energy, must be significantly curtailed to limit global average temperature increase to well below 2 degrees C. The effectiveness of carbon pricing is frequently undermined by sub-optimally low prices and rigid market structures. Consequently, alternative approaches such as compensation for the early closure of coal-fired power plants are being considered. While bilateral negotiations can lead to excessive compensation due to asymmetric information, a competitive auction can discover the true cost of closure and help allocate funds more efficiently and transparently. Since Germany is the only country till date to have implemented a coal phaseout auction, we use it to analyse the merits and demerits of the policy, drawing comparisons with other countries that have phased out coal through other means. The German experience with coal phaseout auctions illustrates the necessity of considering additionality and interaction with existing climate policies, managing dynamic incentives, and evaluating impacts on security of supply. While theoretically auctions have attractive properties, in practice, their design must address these concerns to unlock the full benefits. Where auctions are not appropriate due to a concentration in coal plant ownership, alternative strategies include enhanced incentives for scrappage and repurposing of coal assets. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.14238&r= |
| By: | Hohendanner, Christian (Institute for Employment Research (IAB), Nuremberg, Germany); Janser, Markus (Institute for Employment Research (IAB), Nuremberg, Germany); Lehmer, Florian (Institute for Employment Research (IAB), Nuremberg, Germany) |
| Abstract: | "Efforts to mitigate climate change and promote environmental sustainability have far-reaching implications for businesses and their employees. These efforts require firms to adapt their business models and processes to meet the demands of a greener economy. At the same time, firms are facing an increasing shortage of skilled labour. It has become particularly challenging for companies to find employees with the necessary environmentally and climate-friendly skills. In order to trace the importance and development of green skills in companies in recent years, we aggregate the Greenness of Jobs Indicator (GOJI) generated at the occupational level to the establishment level. This allows us to analyse how the proportion of establishments and their employees with significant shares of green, brown and white skills has developed in recent years since 2012. The results show that establishments with green skills are tending to gain in importance in quantitative terms. The analysis suggests that establishments with green skills may be somewhat better positioned to compete for labour, although there is no evidence of climate quitting, i.e. employees leaving brown establishments in favour of green establishments. However, the data shows that women are more frequently represented in establishments with green skills than in those with brown skills. This could indicate that establishments with green skills are more attractive to women. Overall, the study shows that the ecological transformation brings both challenges and opportunities for companies. While labour shortages are a problem, companies with green skills may be better positioned to meet these challenges and benefit from the opportunities that arise." (Author's abstract, IAB-Doku) ((en)) |
| Keywords: | IAB-Open-Access-Publikation ; IAB-Betriebspanel |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:iab:iabfob:202413&r= |
| By: | Ramaharo, Franck Maminirina (Ministry of Economy and Finance (Ministère de l'Economie et des Finances)) |
| Abstract: | This study employs the Logarithmic Mean Divisia Index (LMDI) decomposition method to analyze the drivers of overall electricity intensity in Madagascar over the period 2007-2022. The decomposition results reveal that the residential sector is the primary driver of overall electricity intensity, followed by the service and industry sectors. Notably, the industry sector has contributed to a decrease in intensity. Furthermore, the results indicate that the intensity effect has had a significant impact on increasing overall electricity intensity, whereas the structure effect has played a role in reducing total intensity. Building on these findings, we investigate the impact of key macroeconomic factors on the observed electricity intensity trend using the Auto Regressive Distributed Lag (ARDL) bounds testing approach with quarterly data over the same study period. The ARDL cointegrating approach estimation results reveal a long-run association between financial development, foreign direct investment, industry development, consumer energy inflation, and trade openness. Moreover, the long-run coefficients, which are further supported by the Dynamic Ordinary Least Squares (DOLS) estimates, indicate that financial development and trade openness have a positive and significant impact on electricity intensity in Madagascar, while foreign direct investment, industry development, and consumer energy inflation have a negative and significant impact, suggesting that these factors contribute to electricity efficiency. The Toda-Yamamoto non-causality approach uncovers unidirectional causal relationships, specifically from financial development, industrial development, and consumer energy inflation to electricity intensity, as well as from electricity intensity to foreign direct investment. These causal directions are further corroborated by the forecast-error variance decomposition, providing strong evidence for these relationships. These findings provide valuable insights for policymakers and stakeholders in Madagascar's energy sector, highlighting the importance of promoting energy efficiency initiatives. |
| Date: | 2024–06–16 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:gc5qe&r= |
| By: | Bernhard K Meister; Henry CW Price |
| Abstract: | The gas fee, paid for inclusion in the blockchain, is analyzed in two parts. First, we consider how effort in terms of resources required to process and store a transaction turns into a gas limit, which, through a fee, comprised of the base and priority fee in the current version of Ethereum, is converted into the cost paid by the user. We hew closely to the Ethereum protocol to simplify the analysis and to constrain the design choices when considering multidimensional gas. Second, we assume that the gas price is given deus ex machina by a fractional Ornstein-Uhlenbeck process and evaluate various derivatives. These contracts can, for example, mitigate gas cost volatility. The ability to price and trade forwards besides the existing spot inclusion into the blockchain could be beneficial. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.06524&r= |
| By: | Demekas, Dimitri G.; Grippa, Pierpaolo |
| Abstract: | In ‘Embracing the Brave New World: A Response to Demekas and Grippa’, a response to our article ‘Walking a Tightrope: Financial Regulation, Climate Change, and the Transition to a Low-Carbon Economy’, both published in the Journal of Financial Regulation, Gruenewald, Knijp, Schoenmaker, and van Tilburg claim that climate risk is a clear and present danger to financial stability that justifies imposing higher capital requirements on supervised firms. Until the current prudential risk framework is revised to fully capture climate risk, they advocate ad hoc measures, such as adjustments to risk weights, which, they believe, would have the desired effect. In this article, we argue that these claims are misguided. Given the nature of climate risk, risk assessment models cannot provide a reliable basis for calibrating capital requirements. On the basis of the evidence, prudential tools would have only a negligible impact on the transition. And the idea of adjusting risk weights for climate exposures has been abandoned—for good reasons. Ultimately, there is nothing financial regulation can do about the energy transition that an appropriately designed carbon tax cannot do better. Central banks and financial regulators should resist the pressure to take on additional responsibilities that are essentially political and that they cannot properly discharge. |
| Keywords: | financial stability; financial regulation; climate change; central banking; OUP deal |
| JEL: | F3 G3 |
| Date: | 2024–06–11 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123012&r= |
| By: | Francesca Guadagno (The Vienna Institute for International Economic Studies, wiiw); Oliver Reiter (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Increasing production of green technologies in the EU holds great potential for the European economy. This study uses trade data and input-output tables to estimate the impacts on GDP and employment of reshoring to the EU the production of five major green technologies photovoltaics, wind turbines, batteries, electric motors and electric vehicles. Our findings show that reshoring these five technologies would increase EU GDP by EUR 18.4 billion, or 0.13% of EU GDP, and create 242, 728 new jobs. The same shift of imports to EU production would have had roughly half of the impact in 2010. We also find significant spillover effects on other sectors of the economy, particularly for metal products, wholesale and retail, professional, scientific and technical activities, and administrative and support services. To make the most from the transition, we argue that EU green industrial policy should put more emphasis on manufacturing capacities and innovation to meet the targets of the Net Zero Industry Act, remain internationally competitive, and reduce strategic dependencies. |
| Keywords: | green transition; photovoltaics; batteries; electric vehicles; GDP; employment |
| JEL: | Q55 Q56 F14 O25 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:80&r= |
| By: | Anthony Mann; Young Chang |
| Abstract: | The global challenge of the green transition, aimed at achieving net-zero emissions, is expected to reshape the labour market significantly, impacting industries, consumption patterns, and energy provision worldwide. This shift is likely to create new jobs while rendering many existing ones obsolete, presenting both economic and redistributive consequences. There is increasing concern about the lack of skilled workers hindering this transition, particularly affecting young people entering the job market. Governments are increasingly acknowledging these challenges and enhancing efforts to prepare for labour market transformations within environmental policies. Education plays a crucial role in preparing students for future careers, not only through academic training but also by fostering the necessary knowledge, skills, attitudes, and values to meet upcoming challenges. However, there is a gap in how well schools are preparing students for careers in building sustainable societies, particularly in signalling green job opportunities. To address this gap, career guidance systems are essential, serving as bridges between students' interests and labour market demands. This scoping study examined 87 guidance programmes within primary and secondary education across 20 OECD countries, aimed at enhancing students' understanding of and progression towards green careers. While the programmes represent only a portion of initiatives in this field, they provide valuable insights into the conceptualisation and implementation of green guidance programmes, which are expected to become increasingly important in the future. |
| Date: | 2024–07–05 |
| URL: | https://d.repec.org/n?u=RePEc:oec:eduaab:318-en&r= |
| By: | Czock, Berit (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Frings, Cordelia (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Arnold, Fabian (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | To decrease emissions from residential buildings, Germany employs a number of policies like renewable energy requirements, subsidies, and CO2 prices that incentivize heating decarbonization. This paper analyses policy-driven household decision-making with regards to decentralized heating technology investment and the resulting costs. We apply a building level mixed integer linear programming model that computes optimal energy investment and operation for decentralized building energy technologies in 770 archetype buildings that represent the German residential building stock. We find that under renewable energy requirements, subsidies, CO2 prices, high medium-term gas prices, and moderately increasing electricity prices, it is optimal for many buildings to replace their fossil systems prematurely by electric heat pumps, achieving quick and substantial decarbonization. However the costs for decentralized decarbonization differ greatly between buildings: Some buildings profit from the subsidies, while others face high burdens. Especially, single family homes with recently installed gas and oil systems and inhabitants of multi family homes potentially face high expenditures for CO2 prices. Policy-makers should consider these dynamics when prioritizing buildings for district heating or hydrogen in the municipal heat planning processes and when designing CO2 price revenue recycling mechanisms. |
| Keywords: | Emission reduction; building sector; building stock; household heating; CO2 pricing; building policy; MILP; archetype buildings; subsidies; decentralized technologies |
| JEL: | C53 C54 D15 D30 H20 Q48 |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2024_004&r= |
| By: | Costella, Cecilia Valentina; Shabahat, Elham Shirin; Sadiq, Nian; Okamura, Yuko |
| Abstract: | This paper reviews the current and potential roles of social protection and jobs (SPJ) policies and mechanisms in supporting address the challenges related to climate change. Given its central role in reducing poverty and vulnerability and in helping people cope with various shocks, SPJ can play a greater instrumental role in both adaptation and mitigation efforts, managing the impacts of climate change as well as the impacts of decarbonization. However, at present, its potential remains underrecognized and SPJ policies and programming seldom integrate climate consideration in a deliberate and strategic manner. To realize this untapped opportunity, this note aims to concisely present SPJ’s role in the climate agenda. It first presents an overview of the potential ways in which SPJ policies and programs can strategically support climate goals, while explaining key issues and concepts. It then reviews existing evidence for and examples of current practice on SPJ and climate change and highlights policy and operational considerations, including key takeaways that SPJ practitioners can use to drive the climate and SPJ agenda forward. |
| Date: | 2024–05–31 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:hdnspu:191318&r= |
| By: | Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Qiang Ji (Institutes of Science and Development, Chinese Academy of Sciences, Beijing, China; School of Public Policy and Management, University of Chinese Academy of Sciences, Beijing, China); Christian Pierdzioch (Department of Economics, Helmut Schmidt University, Holstenhofweg 85, P.O.B. 700822, 22008 Hamburg, Germany) |
| Abstract: | Focusing on China, we study the predictive value of Chinese climate policy uncertainty (CCPU) for subsequent stress in China’s financial markets in a sample of daily data running from October 2006 to December 2022. We control for the impact of international spillover effects of financial stress originating in the European Union (EU), the United Kingdom (UK), and the United States (US), and also for a large number of other important macroeconomic, financial, behavioral variables. Given the large number of predictors, we use random forests, an ensemble machine-learning technique, to trace out the impact of CCPU on financial stress by means of an out-of-sample forecasting experiment. We find that CCPU has predictive value for subsequent financial stress, and that its predictive power is stronger than that of measures of global climate risk. Its predictive value is strongest at a short (daily) forecast horizon and tends to decrease when the length of the forecast horizon increases. Moreover, we document the predictive value of CCPU across a spectrum of conditional quantiles of financial stress. |
| Keywords: | Financial stress, Climate risks, China, Random forests, Forecasting |
| JEL: | C22 C32 C53 G15 Q54 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pre:wpaper:202428&r= |
| By: | Sahar Amidi (Université d'Orléans); Rezgar Feizi (University of Luxembourg) |
| Abstract: | This paper investigates how various factors affect pollution levels in Europe’s manufacturing industry. The paper explores how productivity, expenditure share, trade cost, and environmental regulations affect pollution levels in Europe’s manufacturing industry. The World Input-Output Database provides data on global and local pollution for each industrial sector solely for the period ranging from 1995 to 2009. We use a general equilibrium model and quantitative trade model that considers pollution as a byproduct of production. The study aims to examine the effectiveness of regulations and control for the primary causes of environmental pollution (the main causes). Our empirical results reveal that air pollution emissions from EU manufacturing decreased by 33.21 percent despite an 85.44 percent increase in real manufacturing output. This outcome could provide evidence for the role of reducing the pollution contamination of manufacturing. The study finds that most of the decrease in emissions can be ascribed to changes in environmental regulations, rather than changes in expenditure share, trade cost, and productivity. Increasing environmental regulations by 20 percent can eliminate emissions intensity. After increasing environmental regulations by 20%, the emission of global pollutants such as methane decreased by 17.27% in 2009. |
| Keywords: | Environmental account and accounting, environmental taxes, general equilibrium model, productivity, quantitative model, technological innovation, trade cost |
| JEL: | Q |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2024.10&r= |
| By: | Sulehri, Fiaz Ahmad; Ali, Amjad |
| Abstract: | The concept of sustainable development holds immense importance for both current and future generations. This study investigates the manner in which economic growth acts as a mediator in the relationship between sustainable development and the regulatory framework. We have utilized the structural equation modeling technique to investigate the direct and indirect impacts of exogenous and endogenous variables. We executed this investigation using a sample of 24 countries that accounted for about 65% of global greenhouse gas emissions between 2000 and 2019. According to empirical results based on direct effects, the regulatory framework hinders sustainable development and economic growth. The empirical findings indicate that the regulatory framework has a noteworthy and favorable indirect influence on sustainable development, with economic growth serving as a mediating factor. Furthermore, because of the positive indirect effect, the regulatory framework's negative direct effect on sustainable development outweighs its total adverse effect. In the end, legislators should give utmost importance to creating a balanced regulatory framework that promotes economic expansion while incorporating concepts of environmental, social, and economic sustainability to ensure the well-being of present and future generations. |
| Keywords: | Regulatory Framework, Economic Growth, Sustainable Development, Structural Equation Model |
| JEL: | K32 O44 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121285&r= |
| By: | Gbolonyo, Emmanuel Y.; Ofori, Isaac K.; Ojong, Nathanael |
| Abstract: | Despite the growing scholarly attention concerning the effect of economic complexity (ECI) on inclusive growth and the environment, there remain some pertinent gaps in the literature. First, previous studies have not explored the effect of ECI on inclusive green growth (IGG). Second, prior contributions have not assessed the role of energy consumption (disaggregated into renewable and non-renewable) in the relationship between ECI and IGG. This study addresses these gaps by using macro data for 22 selected African countries. Robust evidence based on the dynamic system GMM and the Driscoll-Kraay standard errors estimators reveal that economic complexity promotes IGG. Additionally, the contingency analysis reveals that non-renewable energy diminishes the IGG-enhancing effect of ECI, whereas renewable energy amplifies it. Finally, when we decompose IGG into environmental and socioeconomic sustainability, we find that the ECI-energy consumption interaction has a greater effect on the latter rather than the former. We conclude that investments for boosting Africa's productive knowledge and renewable energy capacities are crucial for IGG. |
| Keywords: | Africa, Economic Complexity, Renewable Energy Consumption, Inclusive Green Growth |
| JEL: | O44 O55 Q01 Q43 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:298785&r= |
| By: | Moritz, Michael (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Czok, Berit (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Ruhnau, Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | To tackle climate change, residential heating must become climate-neutral. Which technology costefficiently achieves this goal is a complex question, given the heterogeneity of buildings and existing infrastructure, as well as uncertainty regarding future energy prices and grid fees. This article aims to disentangle this complexity by comparing the future costs of various decentral and central climate-neutral heating options. Using Germany as a case study, we calculate the future levelized costs of major heating technologies for different building and settlement types and a wide range of assumptions for uncertain parameters like energy prices and infrastructure costs. We find that electric heat pumps are economical most often within the modeled range of inputs, deployed either decentrally in rural areas or centrally with heating grids in more urban areas. Hydrogen boilers can also be cost-efficient, mainly in rural areas and scenarios with low hydrogen prices and grid fees or high electricity grid fees. By contrast, heating with synthetic natural gas seems unlikely to be economical across our broad range of plausible input assumptions. |
| Keywords: | Infrastructure costs; Energy prices; Heat pumps; Hydrogen; Decarbonization; Techno-economic analysis; Levelized costs of heating; Residential heating; Building energy |
| JEL: | D61 E61 Q40 Q42 Q48 |
| Date: | 2024–06–21 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2024_003&r= |
| By: | Peter Klimek; Maximilian Hess; Markus Gerschberger; Stefan Thurner |
| Abstract: | The steel industry is a major contributor to CO2 emissions, accounting for 7% of global emissions. The European steel industry is seeking to reduce its emissions by increasing the use of electric arc furnaces (EAFs), which can produce steel from scrap, marking a major shift towards a circular steel economy. Here, we show by combining trade with business intelligence data that this shift requires a deep restructuring of the global and European scrap trade, as well as a substantial scaling of the underlying business ecosystem. We find that the scrap imports of European countries with major EAF installations have steadily decreased since 2007 while globally scrap trade started to increase recently. Our statistical modelling shows that every 1, 000 tonnes of EAF capacity installed is associated with an increase in annual imports of 550 tonnes and a decrease in annual exports of 1, 000 tonnes of scrap, suggesting increased competition for scrap metal as countries ramp up their EAF capacity. Furthermore, each scrap company enables an increase of around 79, 000 tonnes of EAF-based steel production per year in the EU. Taking these relations as causal and extrapolating to the currently planned EAF capacity, we find that an additional 730 (SD 140) companies might be required, employing about 35, 000 people (IQR 29, 000-50, 000) and generating an additional estimated turnover of USD 35 billion (IQR 27-48). Our results thus suggest that scrap metal is likely to become a strategic resource. They highlight the need for a massive restructuring of the industry's supply networks and identify the resulting growth opportunities for companies. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.12098&r= |
| By: | Na Wei; Wen-Jie Xie; Wei-Xing Zhou |
| Abstract: | With the frequent occurrence of black swan events, global energy security situation has become increasingly complex and severe. Assessing the resilience of the international oil trade network (iOTN) is crucial for evaluating its ability to withstand extreme shocks and recover thereafter, ensuring energy security. We overcomes the limitations of discrete historical data by developing a simulation model for extreme event shock-recovery in the iOTNs. We introduce network efficiency indicator to measure oil resource allocation efficiency and evaluate network performance. Then, construct a resilience index to explore the resilience of the iOTNs from dimensions of resistance and recoverability. Our findings indicate that extreme events can lead to sharp declines in performance of the iOTNs, especially when economies with significant trading positions and relations suffer shocks. The upward trend in recoverability and resilience reflects the self-organizing nature of the iOTNs, demonstrating its capacity for optimizing its own structure and functionality. Unlike traditional energy security research based solely on discrete historical data or resistance indicators, our model evaluates resilience from multiple dimensions, offering insights for global energy governance systems while providing diverse perspectives for various economies to mitigate risks and uphold energy security. |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2406.11467&r= |
| By: | Briera Thibault (AgroParisTech, 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); Julien Lefèvre (AgroParisTech, 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: | Credible climate policy commitments are crucial for aligning decision-makers' expectations with policy objectives, thereby catalyzing timely low-carbon investments. However, Integrated Assessment Models (IAMs), the primary numerical tools for evaluating solution spaces, policy timing, and investment dynamics in mitigation scenarios, have largely neglected this critical issue. Here, we introduce a framework for addressing credible climate policy commitments with IAMs and conduct a quantitative assessment of their significance for global climate policy effectiveness in achieving long-term goals. We clarify the shortcomings of existing narratives and analytical approaches, proposing a method to integrate a more sophisticated representation of policy credibility in an IAM. Our findings demonstrate that failing to get expectations right can increase cumulative CO2 emissions by 11% compared to scenarios with perfect policy foresight. By 2035, the emissions gap can be as high as 45% in the power sector with regard to the perfect foresight case, under low credibility and limited foresight on policy implementation, highlighting the adverse interplay between capital inertia and low policy credibility. These results underscore the urgent need to explicitly incorporate the credibility of policy commitments into the tools used for climate policy-making. |
| Date: | 2024–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:hal:ciredw:halshs-04619188&r= |
| By: | Gökhan Ider; Alexander Kriwoluzky; Frederik Kurcz; Ben Schumann |
| Abstract: | This paper first shows that, contrary to conventional wisdom, the European Central Bank (ECB) can influence global energy prices. Second, through Lucas critique-robust counterfactual analysis, we uncover that the ECB’s ability to affect fast-moving energy prices plays an important role in the transmission of monetary policy. Third, we empirically document that, to optimally fulfill its primary mandate, the ECB should swiftly tighten policy in response to an increase in energy prices. Crucially, the tightening required depends on the ECB’s ability to influence global energy prices. Finally, we find this policy strategy could have largely prevented the post-pandemic inflation episode. |
| Keywords: | Inflation, energy prices, monetary policy transmission mechanism |
| JEL: | C22 E31 E52 Q43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2089&r= |
| By: | Akoh Fabien Yao (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique); Maxime Sèbe (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique); Laura Recuero Virto (PULV - Pôle Universitaire Léonard de Vinci); Abdelhak Nassiri (AMURE - Aménagement des Usages des Ressources et des Espaces marins et littoraux - Centre de droit et d'économie de la mer - IFREMER - Institut Français de Recherche pour l'Exploitation de la Mer - UBO - Université de Brest - IUEM - Institut Universitaire Européen de la Mer - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - UBO - Université de Brest - CNRS - Centre National de la Recherche Scientifique - CNRS - Centre National de la Recherche Scientifique); Hervé Dumez (i3-CRG - Centre de recherche en gestion i3 - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - I3 - Institut interdisciplinaire de l’innovation - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Environmental practices can enable most businesses, including ports, to gain a competitive advantage. Given the chicken-and-egg dilemma for the adoption of alternative fuels in the shipping industry, this article assesses whether and to what extent ports have incentives to provide liquefied natural gas (LNG) bunkering infrastructure. More specifically, we test whether such facilities positively affect the competitiveness of the ports, which would be an additional incentive to drive the transition to alternative fuels. Using multilevel regressions and propensity score matching on LNG-fueled vessel movements in the Baltic Sea Region in 2019, we found no significant effect of LNG bunkering infrastructure on port competitiveness, measured by port choice probabilities expressed by vessels. Although our findings indicate that ports do not gain a competitive advantage in the short-term, we do not rule out potential gains in the long-term. Policy intervention is desirable in the short-term to maintain incentives for port investments |
| Abstract: | Les pratiques environnementales peuvent permettre à la plupart des entreprises, y compris les ports, d'obtenir un avantage concurrentiel. Compte tenu du dilemme de la poule et de l'œuf pour l'adoption de carburants de substitution dans l'industrie du transport maritime, cet article évalue si et dans quelle mesure les ports ont des incitations à fournir des infrastructures de soute au gaz naturel liquéfié (GNL). Plus précisément, nous testons si ces installations ont une incidence positive sur la compétitivité des ports, ce qui serait une incitation supplémentaire à conduire la transition vers des carburants alternatifs. En utilisant les régressions à plusieurs niveaux et l'adéquation des scores de propension sur les mouvements des navires alimentés par le GNL dans la région de la mer Baltique en 2019, nous n'avons constaté aucun effet significatif de l'infrastructure de soute de GNL sur la compétitivité des ports, mesurée par les probabilités de choix portuaire exprimées par les navires. Bien que nos conclusions indiquent que les ports n'obtiennent pas d'avantage concurrentiel à court terme, nous n'excluons pas les gains potentiels à long terme. L'intervention politique est souhaitable à court terme pour maintenir des incitations aux investissements portuaires. |
| Keywords: | LNG, Port choice, Baltic Sea, Multilevel regression, Propensity score matching, GNL, Choix du port, Mer Baltique, Régression à plusieurs niveaux, Correspondance de scores de propension |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04611804&r= |
| By: | Zhiyuan Li (School of Economics, Fudan University); Bing Lu (School of Statistics, Beijing Normal University); Sili Zhou (Faculty of Business and Administration, University of Macau, and Asia-Pacific Academy of Economics and Management, University of Macau) |
| Abstract: | This paper documents that international trade can cause uneven distribution of production opportunities to countries in face of uncoordinated environmental policies. Specifically, we use exogenous introductions of national carbon policy to study how local firms react to such shocks, especially when they make sourcing decisions on carbon inputs. Results show that regulatory carbon taxes lead domestic firms to import more carbon products, such as cement, iron and steel, from foreign producers. Micro evidence further shows that firms will increase their trade shares to foreign suppliers located in pollution haven. Exploiting global supply chain information, we further find that domestic regulatory carbon taxes do benefit foreign carbon suppliers, helping them to, for example, increase fixed investment, expand production scales and improve financial performance. These findings highlight the importance to take into account international trade when forming environmental policies in order to fulfill the growth, welfare and emission reduction goals of such policies. |
| Keywords: | Green Trade, Carbon Taxes, Carbon Leakage, Production Reallocation, Global Supply Chain |
| JEL: | F18 F23 F64 H23 Q56 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:boa:wpaper:202413&r= |
| By: | Rim Berahab |
| Abstract: | Carbon pricing mechanisms are central to mitigating climate change. These mechanisms work by internalizing the costs associated with greenhouse gas emissions, thus encouraging emissions reductions and promoting technological progress in favor of sustainable alternatives. However, the implementation of carbon pricing mechanisms faces numerous complexities and challenges, especially in developing countries, given the potentially regressive impact of carbon pricing on low-income groups, and the general lack of socio- political support. This policy paper offers a comparative review of two market-based carbon pricing strategies—carbon taxes and emissions trading systems (ETS)—to shed light on their effectiveness, implementation, and capacity to generate revenue. It also argues that carbon pricing should be integrated into a comprehensive policy framework that addresses both national priorities and international equity considerations, in order to effectively address global climate change. The effectiveness of these policies depends largely on their design and adaptation to the specific political and economic contexts in which they are implemented. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaper:pp-07-24&r= |
| By: | Khezri, Mohsen; Karimi, Mohammad Sharif; Naysary, Babak |
| Abstract: | Many countries emphasize entrepreneurship promotion as a policy focus. However, empirical research has often neglected the complex environmental consequences associated with such initiatives. In this study, we analyzed data using a panel model from 14 countries, covering the years 2002 to 2018. Our goal was to thoroughly assess the impact of eleven distinct entrepreneurship indicators on CO2 emissions. Our findings indicate that some control variables, like trade liberalization, are fundamental in reducing emissions. This contrasts with traditional views, which typically revolve around a consistent Kuznets curve that depicts the environmental effects of economic growth. Instead, our research uncovers a dynamic pattern transitioning from a concave upward trajectory to an inverted U-shaped curve, primarily due to increased levels of entrepreneurship. Remarkably, various entrepreneurial indicators, such as government support and policies, taxes and bureaucracy, governmental programs, and cultural and social norms, demonstrate direct positive impacts on CO2 emissions. Conversely, other indicators show a mix of positive and negative effects. Furthermore, examining the spill-over effects of entrepreneurship indicators, particularly in their role in energy use intensity and GDP per capita, reveals significant implications for improving energy consumption efficiency. However, it is important to acknowledge that despite the potential for enhanced efficiency, the negative effects resulting from an increased scale of output may not be completely counteracted. |
| Keywords: | CO2 emission; economic development; entrepreneurship; Kuznets curve |
| JEL: | R14 J01 |
| Date: | 2024–05–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:123865&r= |
| By: | Brüggemann, Anke; Rode, Johannes |
| Abstract: | A recent analysis of the KfW Climate Barometer revealed that in the year 2022, 4.3% or approx. 160, 000 private-sector firms in Germany invested in the generation and storage of electricity or heat from renewable energy sources. That was significantly more than in the previous year. The increase in fossil fuel prices caused by Russia's war of aggression against Ukraine has made investment in renewables more attractive. More than half of firms (54%) in Germany were already using electricity from renewables. But only one in ten businesses was using heat from renewable energy. Both electricity and heat from renewables are more common in larger enterprises than in smaller firms. The provision of heat in industry and commerce is still largely based on burning fossil fuels. That is why it is now necessary to place a stronger focus on the decarbonisation of industrial process heat supply. |
| Date: | 2024–04–26 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:145732&r= |
| By: | ITF |
| Abstract: | This report assesses the potential of decarbonising heavy-duty trucks in India with zero-emission technologies, focusing on battery-electric technology. It presents a four-pillared roadmap for a transition to zero-emission trucks that addresses technology, infrastructure and operations, financing, and policy interventions for India. It achieves this by identifying economically feasible truck segments (based on weight classification) for the transition, along with strategies for developing support infrastructure and innovative financing models. |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:oec:itfaac:130-en&r= |
| By: | Takanori Ida; Takunori Ishihara; Koichiro Ito; Daido Kido; Toru Kitagawa; Shosei Sakaguchi; Shusaku Sasaki |
| Abstract: | Economic policies often involve dynamic interventions, where individuals receive repeated interventions over multiple periods. This dynamics makes past responses informative to predict future responses and ultimate outcomes depend on the history of interventions. Despite these phenomena, existing economic studies typically focus on static targeting, possibly overlooking key information from dynamic interventions. We develop a framework for designing optimal dynamic targeting that maximizes social welfare gains from dynamic policy intervention. Our framework can be applied to experimental or quasi-experimental data with sequential randomization. We demonstrate that dynamic targeting can outperform static targeting through several key mechanisms: learning, habit formation, and screening effects. We then propose methods to empirically identify these effects. By applying this method to a randomized controlled trial on a residential energy rebate program, we show that dynamic targeting significantly outperforms conventional static targeting, leading to improved social welfare gains. We observe significant heterogeneity in the learning, habit formation, and screening effects, and illustrate how our approach leverages this heterogeneity to design optimal dynamic targeting. |
| JEL: | C1 C50 C9 C93 Q4 Q40 Q41 Q48 Q50 Q58 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32561&r= |
| By: | Kaur, S.; Pollitt, M. G. |
| Abstract: | The policy of free electricity since 1997 is hugely popular with farmers in Punjab who are its biggest beneficiaries. Successive Governments have either lacked the courage or willingness to pursue market oriented electricity sector reforms even though the adverse con-sequences are increasingly visible. Over the past few decades, experts have expressed concern over the rapidly receding level of the water table and forecast of desertification, as well as the financial burden on the electricity distribution utility and government. Withdrawing free electricity and charging a price for electricity is a huge challenge. This research aims to estimate willingness to pay (WTP) for electricity and consider preferences for an annual free electricity limit with reward for meter installation and a novel incentive-penalty scheme designed to reward low consumption and discourage over-consumption. A discrete choice experiment assuming random probit and multinomial logit choice behaviour model is deployed to estimate the model parameters. We find that more than 82% of respondents are willing to accept an entitlement to a free electricity limit – with a reward for consuming less than this – rather than the current policy of free and unmetered electricity. We also find that the WTP for electricity increases with higher entitlements. Considering the WTP alone, the results suggest that increasing the electricity price can be acceptable to farmers. Further research is needed to develop a pricing strategy that considers the inter-relatedness between electricity entitlement, saving incentive and price. |
| Keywords: | Agriculture, energy water nexus, entitlement, incentive, groundwater, irrigation, electricity consumption, paddy, subsidy, electricity pricing, discrete choice, Punjab |
| JEL: | O13 Q1 Q4 Q5 Q12 Q24 Q25 Q28 Q48 Q57 |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2434&r= |
| By: | R. ABBAS (INSEE); N. CARNOT (INSEE); M. LEQUIEN (INSEE); A. QUARTIER-LA-TENTE (INSEE); S.ROUX (INSEE) |
| Abstract: | Avec un modèle de choix optimal d'investissement – ou d'échouage – en capital brun, émetteur de gaz à effet de serre, ou vert, sans émissions, nous décrivons les transitions optimales vers la neutralité carbone qui respectent des contraintes climatiques de type plafonds ponctuels d'émissions (Fit for 55) ou budget carbone. Nous montrons que : i) un échouage anticipé ne peut pas se produire avec des cibles ponctuelles ; ii) pour limiter le réchauffement à un niveau donné, introduire explicitement cette contrainte sous la forme d'un budget carbone restant minimise le coût économique associé, induisant un échouage initial élevé avec des budgets limités. Des plafonds d'émissions réguliers dès la première année, et choisis à partir des émissions de cette trajectoire optimale, entraînent une trajectoire proche ; iii) à cumul d'émissions donné, retarder la transition augmente les coûts et l'échouage ; iv) l'investissement total durant et après la transition est inférieur à celui de l'état initial. Tous les codes utilisés sont disponibles sous https://github.com/InseeFrLab/DT-way-to- net-zero. |
| Keywords: | transition écologique, budget carbone, neutralité carbone, capital échoué, investissements |
| JEL: | Q54 Q58 E20 C61 P18 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:nse:doctra:2024/11&r= |
| By: | Webster, Richard J; Harrison, Mary-Ann; Zitikyte, Gabriele |
| Abstract: | Decision makers around the world are announcing climate targets, but often assume that future technologies will make their decarbonisation promises of today achievable tomorrow. Concerningly, the IPCC states that current technologies are insufficient to address the climate crises. Digital tools (e.g., software, phone apps, dashboards) provide an interesting microcosm to investigate the pace of emerging technologies, as they are rapidly developed, easily scaled, and leverage analytics; yet little is known about digital tools for climate action. This scoping review aims to i) identify digital tools for climate mitigation, ii) assess their pace of innovation, and iii) perform a gap analysis. We identified 352 digital tools for climate mitigation. This repository of tools has particular value as 72% of these digital tools were found to be open source. A novel statistical analysis was used to determine the pace of innovation and assess the maturity of climate mitigation digital technologies. Encouragingly, digital tools for climate mitigation are emerging at an annual rate of 19% (95% CI: 16- 22%), with open-source solutions driving this exponential growth. This snowballing growth of climate mitigation digital innovations might yield disruptive solutions for emissions savings and is optimistic news for tackling the climate crisis. |
| Date: | 2024–06–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:92sp3&r= |
| By: | OECD |
| Abstract: | Agendas on climate change mitigation and plastic pollution have largely developed independently. However, the two issues are closely linked. Most plastics are produced from fossil fuels. Jointly, the production, conversion and waste management of plastics generate greenhouse gas emissions. This paper reviews the interactions and synergies between climate change and plastics pollution. It subsequently reviews interactions between policies to reduce greenhouse gas emissions and plastic pollution. The findings from this work can help inform policy agendas and provide opportunities for countries to develop policies which exploit synergies. |
| Date: | 2023–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:oec:envaac:45-en&r= |
| By: | Heinz Welsch (Universiy of Oldenburg, Department of Economics) |
| Abstract: | The Paris Agreement on Climate Change requests signatory countries to specify voluntary caps on their greenhouse gas emissions. The caps stated by the end of 2021 imply percentage emission reductions that vary widely across countries. This paper uses globally representative data from the Global Climate Change Survey to study how countries’ emission reduction pledges are related to climate action preferences of their respective citizens. The study finds the following: (1) Nations’ percentage reduction pledges (PRPs) are not significantly related to citizens’ mean national willingness to contribute (WTC) to climate change mitigation. (2) WTC and PRPs are linked to key country characteristics in diametrically opposite ways. Specifically, (2a) WTC is positively related to average annual temperatures and negatively related to per-capita income and per-capita emissions, whereas (2b) PRPs are negatively related to average annual temperature and positively related to per-capita income and per-capita emissions. (3) Measures of divergence between PRPs and WTC are negatively related to citizens’ satisfaction with democracy. Assuming that temperatures, per-capita income, and per-capita emissions indicate sensitivity to climate change, adaptive capacity, and mitigation costs, respectively, finding (2a) is consistent with standard cost-benefit considerations. Assuming that per-capita emissions and per-capita income indicate “Differentiated Responsibilities and Respective Capabilities†, finding (2b) is consistent with ethical principles of equity and fairness. Considering right-wing populists’ using climate change as a political battleground, finding (3) suggests the possibility that ambitious mitigation targets may backfire by fuelling support for anti-climate populist parties – a political- economy tragedy of the commons. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:old:dpaper:445&r= |
| By: | Srdelic, Leonarda |
| Abstract: | To identify sectors in Croatia that are particularly sensitive to the European Union's measures for transitioning to a low-carbon economy, this paper analyses data from the United Nations Framework Convention on Climate Change (UNFCCC) on greenhouse gas emissions. The aim is to identify the sectors that contribute most to climate change, assess their effectiveness in implementing emission reduction policies, and achieve sustainable development goals. Based on the analysis, it is clear that the energy, transport, and industrial processes sectors are key in the context of sensitivity to EU climate policies. In contrast, the Land Use, Land-Use Change and Forestry sector stands out as offering unique opportunities for mitigating climate change through carbon sequestration activities and thereby achieving climate neutrality. |
| Keywords: | transition risks, climate change, greenhouse gas emissions, Croatia, euro area |
| JEL: | E01 Q54 Q58 |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121318&r= |
| By: | Habla, Wolfgang; Kokash, Kumai; Löfgren, Åsa; Straubinger, Anna; Ziegler, Andreas |
| Abstract: | Based on data from broadly representative surveys among more than 1, 400 citizens in Germany and Sweden, this paper empirically examines the support of different groups of climate-related (passenger) transport policy measures targeting vehicle use, public transport, air travel, and bicycle use. Our descriptive analysis reveals that pull policy measures (e.g. the financial support of public transport) are more strongly supported in both countries than push policy measures (e.g. the increase in taxes on flight tickets). Furthermore, bans (i.e. a sales ban on new gasoline- and diesel-powered vehicles and a ban on domestic flights) do not receive much support. Our econometric analysis with multivariate ordered and binary probit models points to the strong relevance of economic self-interest for the support of vehicle-, air travel-, and bicycle-related policy measures, i.e. citizens who are negatively affected by a certain measure are significantly more likely to disagree with it, while citizens who benefit from a certain measure are significantly more likely to support it. For example, owners of vehicles that run exclusively on conventional fuels are significantly less likely to agree with the introduction of road user charges on highways and especially the sales ban on new gasoline- and diesel-powered vehicles. Our econometric analysis also shows that environmental awareness and political identification play an important role for the agreement with most of the policy measures considered. Finally, we discuss our empirical results in the context of current policy debates in Germany and Sweden and some implications for policymakers. |
| Keywords: | Climate change, transport policy measures, individual support, multivariate probit models, simulated maximum likelihood estimation |
| JEL: | Q54 R48 L98 Q48 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:300007&r= |
| By: | Cavallo, Eduardo A.; Cepeda, Ana; Panizza, Ugo |
| 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 analyzing 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 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:13537&r= |
| By: | Giovanardi, Francesco; Kaldorf, Matthias |
| Abstract: | This paper proposes a quantitative multi-sector DSGE model with bank failure and firm default to study the interactions between bank regulation and climate policy. Households value the liquidity of deposits, which are protected by deposit insurance. Banks collect deposits and issue equity to extend defaultable loans to clean and fossil energy firms. Bank capital regulation affects liquidity provision to households, bank risk-taking, and loan supply across sectors. Using a calibrated version of the model, we obtain four results: first, fossil penalizing capital requirements can be discarded as climate policy instrument, since their effect on sector-specific investment is quantitatively negligible in general equilibrium. Second, Ramsey-optimal capital requirements in response to a tax-induced clean transition decline to counteract negative loan demand effects. Third, differentiated capital requirements are only necessary if banks are not perfectly diversified across sectors. Fourth, nominal rigidities induce a temporary tightening of capital requirements if the transition is inflationary and, thus, spurs a boom on the loan market. |
| Keywords: | Bank Regulation, Liquidity Provision, Risk-Taking, ClimatePolicy, Clean Transition, Multi-Sector Model |
| JEL: | E44 G21 G28 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:298857&r= |
| By: | Dirk Pilat (The Productivity Institute) |
| Keywords: | Climate change, net zero, environmentally-adjusted productivity measurement |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:anj:ppaper:032&r= |
| By: | Kang, Munsu (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Son, SungHyun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Ryou, Kwangho (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Lee, Jieun (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)); Han, Saerom (Sookmyung Women's University) |
| Abstract: | 중동·북아프리카 지역의 에너지 보조금 정책 개혁에 관한 논의는 정부 재정 건전화, 사회보장 서비스 확대를 위한 재원 확보, 기후변화 대응 및 탈탄소화를 근거로 지속적으로 이루어지고 있다. 그러나 2010년대 이후 이루어진 보조금 정책 개혁에 따라 물가가 급등하면서 사회적 불안정이 발생하는 계기가 되기도 하였다. 이에 본 연구에서는 2010~21년 사이 에너지 보조금 정책이 중동·북아프리카 지역 경제 활동과 환경에 미친 영향, 그리고 에너지 보조금에 관한 사회적 인식도 조사를 바탕으로 보조금 정책 개혁을 위한 정책 과제를 제시하였다. 에너지 보조금 개혁에 관한 논의는 역내 경제 성장, 사회적 영향, 그리고 환경적인 영향까지 종합적으로 고려해서 이루어져야 하는바, 이에 본 연구에서는 취약계층을 위한 사회 서비스 개선, 대중교통 시스템 및 에너지 효율성 개선, 재생에너지 지원 확대, 캠페인을 통한 인식 개선을 정책 과제로 제시하였다. In recent years, international efforts have been made to reduce fossil fuel-based energy subsidies as the energy transition has accelerated in response to climate change. As part of a social contract, energy subsidies have been used to stabilize domestic prices and stimulate the economy, especially in the Middle East and North Africa. As a result, per capita energy subsidies in the Middle East and North Africa (hereafter referred to as MENA) have reached the highest levels in the world, and excessive government spending has also been identified as a factor preventing the expansion of social services for the most vulnerable. In light of the decarbonization trends and research showing that energy subsidies contribute to air pollution, subsidy policies are at a critical crossroads between reduction and maintenance. However, the Arab Spring in 2011 occurred in countries that attempted to reduce energy subsidies and resulted in consumer prices rises contributing to political instability. More recently, the overall increase in energy subsidies since 2020 was also an attempt to stabilize the domestic situation by overcoming the economic downturn through the successive outbreaks of the COVID-19 pandemic and the Russian-Ukrainian war. Despite its importance, there is little research on the impact and social perceptions of energy subsidy policies in the MENA region with coverage since the late 2010s. To fill this gap, this study focuses on the impact of energy subsidy policies on the economy and environment, and social perceptionsof energy subsidies in the MENA region. Using satellite data such as nighttime lights and air pollution concentrations, this study examines trends in energy subsidy policies and levels in the MENA region in the 2010-2021 period. Lastly, we conducted an online survey to examine awareness of energy subsidy policy and policy reform in the MENA. Based on these findings, this study proposed recommendations for energy subsidy policy reform, taking into account the MENA context. (the rest omitted) |
| Keywords: | Middle East and North Africa(MENA); climate change; energy subsidy reform; energy transition |
| Date: | 2023–12–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieppa:2023_018&r= |
| By: | Audi, Marc; Ali, Amjad |
| Abstract: | This research has examined the impact of business freedom on environmental degradation in developed and developing countries from 2000 to 2022. Panel least squares and generalized method of moments have been applied for empirical analysis. Our findings show that both business freedom and renewable energy consumption have a significant and detrimental influence on environmental degradation in both developed and developing nations. Furthermore, our findings highlight the significant influence of financial development on environmental degradation in both the whole sample and developing nations. Urbanization, on the other hand, has a significant impact on environmental degradation in both developed and developing nations. Interestingly, financial development has a negative and significant impact on environmental degradation in developed nations, while energy consumption has a notable positive and significant relationship with environmental degradation across the board. These findings suggest that the encouragement of entrepreneurial independence and the use of renewable energy sources might be helpful ways for mitigating environmental damage. Addressing the negative consequences of urbanization on the environment is also critical. The short-run dynamics give useful insight for developing tailored strategies to establish a sustainable balance between economic expansion and environmental preservation at the same time. |
| Keywords: | Business freedom, renewable energy consumption, environmental degradation, urbanization, energy consumption |
| JEL: | F41 Q30 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121287&r= |
| By: | Böhl Gutierrez, Mauricio; Vega Araújo, José; Arond, Elisa |
| Abstract: | This policy brief addresses the critical issue of phasing out diesel subsidies in Colombia and underscores the urgent need for coordinated action and strategic planning. The Colombian government views the subsidy phase-out as part of its energy transition strategy, proposing investments in carbon-neutral technologies as a replacement. However, the transport sector - the main consumer of diesel - largely considers these plans inadequate and is sceptical about their feasibility. Subsidies for diesel and gasoline, stemming from the Fuel Price Stabilisation Fund (FEPC), burden the Colombian budget with a significant deficit and threaten Colombia's fiscal sustainability. In 2022, subsides represented 2.5 per cent of the national gross domestic product (GDP). A failed subsidy phase-out could undermine the country's energy transition efforts, potentially leading to national strikes by the transport sector and eroding trust in the government's transformation plan. The brief examines the hurdles for the diesel subsidy phase-out process, with a particular focus on the necessary reforms within the transport sector, scepticism about the government's energy transition plans and the potential negative effects for state-owned enterprise Ecopetrol. Drawing from these insights, the policy brief distils policy recommendations for the short and medium term. In the concluding remarks, it stresses that a failed subsidy phase-out could jeopardise broader energy transition efforts. Recommendations for the national government (see p. 5 for more details): Short term - 1. Re-initiate stakeholder meetings on the phase-out promptly, with the Ministry of Transport taking the lead and involving additional key stakeholders such as clients of the transport sector, the Ministries of Social Prosperity, Environment, and Labour, as well as the National Planning Department. 2. Collaborate with these stakeholders to develop an action plan, incorporating support measures for the transport sector such as improving energy efficiency and coordination between the transport companies. 3. Create specific social programmes aimed at mitigating socioeconomic effects, using the Participatory Guarantee System (SPG) and strengthening the System for the Identification of Potential Beneficiaries of Social Programmes (Sisbén). Medium term - 4. Review the objectives and strategies of national planning documents to accurately reflect the circumstances of self-employed truckers. These should consider reallocating funds from subsidies to supplement the existing Vehicle Fleet Replacement Fund (Fondo de Reposición del Parque Automotor). 5. Restructure the transport sector to enhance resilience and promote investment in sustainability. For instance, explore the model of cooperatives in the Colombian passenger transport sector, which enables truckers to maintain autonomy while mitigating investment risks. 6. Explore strategic partnerships between Colombian and foreign private-sector entities with experiences incorporating sustainable and responsible practices, academia and research institutions, and development agencies that have an interest in the Colombian energy transition process to expedite the transition to more sustainable technologies in the transport sector. |
| Keywords: | Fossil Fuel, Subsidy Phase-Out, Diesel, Energy Transition, Colombia, Transport Sector, Political Economy, Just Transition, Hydrogen, Socioeconomic Effects |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:299532&r= |
| By: | Shi, Xiangyu; Gong, Jiaowei; Zhang, Xin; Wang, Chang |
| Abstract: | In this paper, we document a novel fact that disclosures of public information reshape social dynamics in China. Using the staggered roll-out of a quasi-natural experiment of air pollution information disclosure and a novel high-frequency data set of social and public events, we find socioeconomic cooperation and protests both significantly decrease after disclosure. The negative effects are larger when the disclosed pollution level is higher and when residents have higher environmental awareness and lower trust in local governments. Our results are rationalized in a theoretical model and suggest that information disclosure involves a tradeoff between economic efficiency and political stability and leads to a dilemma for policymakers. |
| Keywords: | Air pollution; Information; Social dynamics; Public events; Socioeconomic cooperation; Protests; China |
| JEL: | D7 D9 O1 Q5 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121357&r= |
| By: | Kaur, S.; Pollitt, M. G. |
| Abstract: | Diesel and electric pumps have dominated groundwater irrigation in Punjab since the advent of intensive agriculture in 1966. National policies offer a range of subsidies for solar pumps, but there is limited empirical evidence of their effectiveness in promoting adoption. To address this need, a discrete choice method is applied to estimate the level of financial incentives for solar pumps preferred by farmers. The results show that enhanced subsidies combined with energy buyback have a significant impact on adoption decisions. The impact of contextual factors on the acceptance of grid-connected solar pumps is also estimated. Additionally, willingness to pay estimates and economic evaluations are improved with the use of flexible mixed logit formulation. The findings confirm that low subsidy limits the diffusion of solar pumps in Punjab agriculture. Further, the results from the statistical models indicate high public acceptance of individual solar agriculture pumps. We suggest that solar subsidies combined with grid purchases of surplus solar electricity can both reduce emissions and reduce the over-use of ground water, by indirectly introducing a price of electricity for water pumping. |
| Keywords: | Renewable energy, solar pumps, feeder level solarization, energy water nexus, energy subsidies, irrigation water, electricity, groundwater depletion, Punjab |
| JEL: | Q1 Q20 Q25 Q42 Q58 O13 O38 P48 |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2435&r= |