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on Energy Economics |
| By: | Shitab Ishmam; Heidi Heinrichs; Christoph Winkler; Bagher Bayat; Amin Lahnaoui; Solomon Agbo; Edgar Ubaldo Pena Sanchez; David Franzmann; Nathan Ojieabu; Celine Koerner; Youpele Micheal; Bamidele Oloruntoba; Carsten Montzka; Harry Vereecken; Harrie-Jan Hendricks-Franssen; Jeerawan Brendt; Simon Brauner; Wilhelm Kuckshinrichs; Sandra Venghaus; Daouda Kone; Bruno Korgo; Kehinde Ogunjobi; Vasco Chiteculo; Jane Olwoch; Zachary Getenga; Jochen Lin{\ss}en; Detlef Stolten |
| Abstract: | For fast-tracking climate change response, green hydrogen is key for achieving greenhouse gas neutral energy systems. Especially Sub-Saharan Africa can benefit from it enabling an increased access to clean energy through utilizing its beneficial conditions for renewable energies. However, developing green hydrogen strategies for Sub-Saharan Africa requires highly detailed and consistent information ranging from technical, environmental, economic, and social dimensions, which is currently lacking in literature. Therefore, this paper provides a comprehensive novel approach embedding the required range of disciplines to analyze green hydrogen cost-potentials in Sub-Saharan Africa. This approach stretches from a dedicated land eligibility based on local preferences, a location specific renewable energy simulation, locally derived sustainable groundwater limitations under climate change, an optimization of local hydrogen energy systems, and a socio-economic indicator-based impact analysis. The capability of the approach is shown for case study regions in Sub-Saharan Africa highlighting the need for a unified, interdisciplinary approach. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.07573 |
| By: | Severin Borenstein; Lucas W. Davis |
| Abstract: | Over the last two decades, U.S. households have received $47 billion in tax credits for buying heat pumps, solar panels, electric vehicles, and other “clean energy” technologies. Using information from tax returns, we show that these tax credits have gone predominantly to higher-income households. The bottom three income quintiles have received about 10% of all credits, while the top quintile has received about 60%. The most extreme is the tax credit for electric vehicles, for which the top quintile has received more than 80% of all credits. The concentration of tax credits among high-income filers is relatively constant over time, though we do find a slight broadening for the electric vehicle credit since 2018. The paper then turns to the related question of cost effectiveness, examining how clean energy technology adoption has changed over time and discussing some of the broader economic considerations for this type of tax credit. |
| JEL: | H23 Q42 Q58 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32688 |
| By: | Guglielmo Maria Caporale; Luis Alberiko Gil-Alana; Sakiru A. Solarin; OlaOluwa S. Yaya |
| Abstract: | This study examines the stochastic properties of German green and brown stock prices; more specifically, fractional integration methods are applied to daily data on representative green and brown stock indices for the Berlin, Dusseldorf, Frankfurt, Gettex, Munich, and Stuttgart stock exchanges over the period from 13 May 2019 to 8 May 2024. The results indicate a higher degree of persistence in the case of green stock prices vis-à-vis brown ones, although the differences are not statistically significant over the full sample. However, when splitting the sample into three subperiods (pre-Covid-19, Covid-19 and post-Covid-19), statistically significant differences are found, especially during the pandemic period. Moreover, the estimation of a GARCH (1, 1) model for stock returns shows that their conditional volatility is characterised by lower persistence and shorter half-lives in the case of brown stocks. |
| Keywords: | green stocks, brown stocks, fractional integration persistence, Covid-19 pandemic, Germany |
| JEL: | C22 G10 Q50 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11207 |
| By: | Fulton, Lew; Yang, Chris; Burke, Andrew; Acharya, Tri Dev; Bourne, Beth; Coffee, Daniel; Kong, David |
| Abstract: | To achieve California’s ambitious climate goals, a shift to hydrogen fuel for some transportation sectors may be essential.In this report, we explore the build-out of a hydrogen fuel distribution system including uptake of light-, medium-, and heavy-duty fuel cell electric vehicles. Our analysis of Base and High Case scenarios includes costs of building and operating a hydrogen vehicle and fuel system and estimates workforce impacts. We consider scenarios with about 125, 000 vehicles by 2030 in the Base Case and 250, 000 in the high case. This increases by an order of magnitude to 2045. Vehicle and station investment costs associated with the Base Case reach anywhere from $4 to 12 billion USD by 2030 and increase by a factor of eight by 2045. Costs per kg of hydrogen, including fuel transmission to stations and station costs delivered to vehicles, could be in the range of $4 to 8 per kg. This becomes $6 to 10/kg as a final delivered cost, if production of hydrogen were to cost $2/kg. Workforce impacts in the Base Case include 600 to 2, 200 jobs created by 2030, rising rapidly thereafter. This report was prepared by the ITS-UC Davis Energy Futures Hydrogen Program in partnership with the UCLA Luskin Center for Innovation. |
| Keywords: | Engineering, Hydrogen fuels, fuel cell vehicles, electric vehicles, market penetration, capital costs, economic impacts, jobs |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt133538gw |
| By: | Nahm, Jonas |
| Abstract: | There is probably no other advanced industrial sector in which China plays a greater role in global supply chains than in the solar industry. From the production of basic material inputs to the assembly of solar modules, Chinese firms dominate virtually every segment of global solar photovoltaic (PV) supply chains. This paper reviews the role of industrial policy in shaping China’s current position in current solar supply chains. The author argues that China’s solar industry started as an export-oriented sector driven primarily by subnational government investments in manufacturing capacity. While the Chinese central government enabled the role of subnational actors to some degree, the center responded to subnational government actions more than it guided them. While the central government has taken a more active role in shaping domestic markets since its first intervention in the solar industry in 2009, it has continued to primarily address unintended consequences caused by misaligned incentives for subnational actors. |
| Keywords: | Social and Behavioral Sciences, China, industrial policy, solar, renewable energy, supply chains |
| Date: | 2023–01–04 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt0f34s7b6 |
| By: | Bård Harstad; Katinka Holtsmark |
| Abstract: | We analyze a fundamental dilemma and time-inconsistency problem facing a climate coalition producing natural gas. In the short term, it is tempting to export more to outcompete coal. When this policy is anticipated, however, investments in renewables fall and emissions ultimately increase. When the coalition cannot pre-commit, its policies will be counterproductive. We discuss the robustness of this result and possible solutions. If the coalition can invest directly in renewables, for instance, the incentive to maintain a high price on exports can mitigate the temptation to reduce the price to outcompete coal. Under certain conditions, the commitment outcome can be implemented. |
| JEL: | F18 H23 Q55 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32718 |
| By: | Rubén Domínguez-Díaz (BANCO DE ESPAÑA); Samuel Hurtado (BANCO DE ESPAÑA) |
| Abstract: | We use an endogenous growth model calibrated to the Spanish economy to evaluate the effects of a rapid doubling of international prices of brown energy inputs. In the baseline calibration of the model, which resembles the current state of the Spanish economy, this results in a 0.30% drop in GDP on impact. After increasing the share of renewables in the energy mix from 26% to 85%, in line with the 2050 targets for the Spanish economy, the same shock results in a 0.24% fall in GDP on impact, and the recovery is faster: the present discounted value of the full GDP response is reduced by 65%. The three main conclusions that we draw from this exercise are: i) an increase in the share of renewables makes the economy less vulnerable to shocks in international prices of brown energy inputs; ii) this vulnerability reduction is less than proportional: dividing the share of brown energy by approximately five only reduceds the size of the effects on GDP by between 21% and 65%; and iii) the main statistic that determines how much the vulnerability is reduced is not the share of brown energy inputs, but the degree to which final energy prices respond to the shock to brown energy prices. |
| Keywords: | energy prices, green transition, external shocks, carbon tax |
| JEL: | O38 O52 O44 E32 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2425 |
| By: | Bachmann, Rüdiger; Baqaee, David Rezza; Bayer, Christian; Kuhn, Moritz; Löschel, Andreas; Moll, Ben; Peichl, Andreas; Pittel, Karen; Schularick, Moritz |
| Abstract: | This paper discusses the economic effects of a potential cut-off of the German economy from Russian energy imports. We use a multi-sector open-economy model and a simplified approach based on an aggregate production function to estimate the effects of a shock to energy inputs. We show that the effects are likely to be substantial but manageable because of substitution of energy imports and reallocation along the production chain. In the short run, a stop of Russian energy imports would lead to an output loss relative to the baseline situation, without the energy cut-off, in the range 0.5% to 3% of GDP. |
| Keywords: | Wiley deal |
| JEL: | J1 |
| Date: | 2024–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124094 |
| By: | Tobias Kruse; Jonas Teusch; Filippo Maria D’Arcangelo; Mauro Pisu |
| Abstract: | What is the effect of recent carbon price developments on domestic emissions and carbon leakage? This paper first develops a comprehensive plant-level carbon pricing dataset for key heavy industries at risk of carbon leakage, i.e. aluminium, cement and steel plants in 140 countries, drawing on satellite observations. The new dataset reveals that the average plant-level carbon price for these sectors increased by a factor of seven from USD 1.4 per tonne of CO2-equivalent (tCO2e) in January 2015 to USD 11/tCO2e in December 2021. Over the same time period, carbon price asymmetries i.e. the average difference in carbon prices among trading partners, increased by more than 350%. The paper then tests whether higher carbon prices have reduced plant-level emissions and whether rising carbon price asymmetries have affected international trade and led to carbon leakage. Results suggest that, on average, a USD 1/tCO2e increase in carbon prices reduces cement and steel plants’ emissions by 1.3%. Back-of-the-envelope calculations suggest that carbon leakage through international trade offset around 13% of these domestic emission reductions. |
| Keywords: | carbon leakage, carbon pricing, climate policy, emissions trading, industrial decarbonisation |
| JEL: | C23 H23 Q41 Q48 Q54 F18 |
| Date: | 2024–07–25 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1813-en |
| By: | Ivana Capozza |
| Abstract: | Romania’s clean energy transition needs to accelerate for the country to decarbonise its economy by mid-century. Following an impressive decline from the early 1990s, emissions of greenhouse gases have stopped falling in recent years. Fossil fuel dependence, an increasing and ageing vehicle fleet and poorly insulated buildings increase energy use and carbon intensity. Moving away from fossil fuels in Romania calls primarily for more renewables; shifting to electricity in transport and buildings; substantial energy savings; and improved transport systems. This paper identifies policies that would help bring about these changes cost effectively, while minimising the socio-economic impact of the transition and contributing to improving people’s quality of life. The policy package should include institutional reforms and public investment, regulatory changes, financial support and consistent price signals to encourage private abatement actions. Measures to alleviate the impact of the net-zero transition on vulnerable communities and to adapt to climate change are also required. |
| Keywords: | carbon pricing, clean energy transition, climate policy, energy efficient buildings, energy taxes and subsidies, environment, just transition, Romania, sustainable transport |
| JEL: | H23 H30 O13 O18 Q32 Q41 Q42 Q43 Q48 Q54 Q58 R11 R41 R48 |
| Date: | 2024–07–25 |
| URL: | https://d.repec.org/n?u=RePEc:oec:ecoaaa:1812-en |
| By: | Achilles, Catrina; Limbach, Peter; Wolff, Michael; Yoon, Aaron |
| Abstract: | Using project-level data from the Carbon Disclosure Project, we demonstrate how firms actually reduce greenhouse gas emissions. Most firms mainly pursue projects with small investments (median $127, 000) and short payback periods (maximum three years). Firms experiencing shortterm performance pressure, smaller in size, and with shorter decarbonization horizons are more likely to implement such projects. Short-term projects focus on energy efficiency (e.g., LED upgrades) rather than involving transformative technology. They yield more expected annual carbon dioxide (CO2) and monetary savings and have greater NPVs than the average longer-term project, but exhibit lower total CO2 savings over the projects' lifetime. Firms with a greater share of short-term projects exhibit higher future environmental ratings, but it is a combination of shortand long-term projects that generates the most expected CO2 savings. Our evidence suggests that typical firm climate engagements are neither costly nor long-term oriented. In sum, firms tend to mitigate rather than adapt to climate change. |
| Keywords: | Climate change, Corporate greenhouse gas emissions reduction initiatives, Environmental investment decisions, ESG ratings, Financial incentives, Investment horizon |
| JEL: | D25 D62 G30 M41 Q54 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfrwps:300682 |
| By: | Gazilas, Emmanouil Taxiarchis |
| Abstract: | This study conducts a comprehensive financial assessment of Greece's ten largest energy companies during the tumultuous period of 2019 to 2022, amidst the unprecedented challenges posed by the COVID-19 pandemic. Employing a meticulous analysis of crucial profitability ratios, I delve into the financial resilience and adaptability of these firms within the ever-evolving energy sector landscape. My findings reveal a diverse spectrum of financial performances during the early pandemic years (2019-2020), with notable discrepancies in net profit margins. As the world transitioned to the post-pandemic era (2021-2022), I witnessed varying degrees of adaptability, with certain companies demonstrating impressive resilience while others grappled with shifting market dynamics. This research underscores the imperative of tailored financial strategies and adept cost management practices within the energy sector to effectively weather the challenges of an uncertain world. The insights gleaned offer valuable guidance to industry stakeholders and decision-makers in navigating the complex terrain of Greece's energy landscape. |
| Keywords: | Energy Companies, Financial Resilience, COVID-19 Pandemic, Financial Ratios, Greece |
| JEL: | M41 |
| Date: | 2023–09–26 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121312 |
| By: | Naomi-Rose Alexander; Longji Li; Dr. Jorge Mondragon; Sahar Priano; Ms. Marina Mendes Tavares |
| Abstract: | This study examines the green transition's effects on labor markets using a task-based framework to identify jobs with tasks that contribute, or with the potential to contribute, to the green transition. Analyzing data from Brazil, Colombia, South Africa, the United Kingdom, and the United States, we find that the proportion of workers in green jobs is similar across AEs and EMs, albeit with distinct occupational patterns: AE green job holders typically have higher education levels, whereas in EMs, they tend to have lower education levels. Despite these disparities, the distribution of green jobs across genders is similar across countries, with men occupying over two-thirds of these positions. Furthermore, green jobs are characterized by a wage premium and a narrower gender pay gap. Our research further studies the implications of AI for the expansion of green employment opportunities. This research advances our understanding of the interplay between green jobs, gender equity, and AI and provides valuable insights for promoting a more inclusive green transition. |
| Keywords: | Labor Market Transition; Climate Change; Employment |
| Date: | 2024–07–19 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/156 |
| By: | Beyer, Victor; Bauckloh, Michael Tobias |
| Abstract: | This research investigates the influence of methodological choices in portfolio sorts on the size of the carbon premium. By analyzing more than 100, 000 methodological paths, we find that variations in the construction of brown-minus-green portfolios create substantial non-standard errors. From 2009 to 2022, the mean carbon premium is -0.16% per month, with a non-standard error of 0.26%. Additionally, there is significant time-series variation in non-standard errors, which correlates with climate media attention. Controlling for unexpected changes in climate concerns substantially reduces methodology-induced uncertainty and helps explain the absence of a consistently positive carbon premium. |
| Keywords: | non-standard errors, portfolio sorts, carbon premium, methodological uncertainty |
| JEL: | C58 G11 G12 Q54 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfrwps:300683 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Many countries in the Middle East and North Africa (MENA) region have reinforced their interest in enhancing domestic value creation from renewable energy industries while striving to achieve their green energy transition targets. The Kingdom of Saudi Arabia has identified key segments in the wind and solar supply chain for localization in the short term, medium term, and long term as part of its ongoing efforts to diversify its energy portfolio and protect its economy from external shocks. |
| Keywords: | Belt and Road, Capital expenditure, Circular Carbon Economy, CO2 emissions |
| Date: | 2023–03–21 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2022-wb13 |
| By: | Ms. Margaux MacDonald; Ian W.H. Parry |
| Abstract: | Large reductions in global emissions are needed for the world to be on track to meet global temperature goals. Asia-Pacific countries have a critical role in emissions reduction given their large and rising share in global emissions. This paper discusses the main opportunities and behavioral responses for reducing emissions, and commonly used mitigation instruments. It then considers key design issues for carbon pricing, with a focus on emissions trading schemes (ETS), describes measures to overcome the obstacles to carbon pricing, and discusses experiences with carbon pricing relevant for Asia-Pacific economies. Lastly, the paper covers complementary policy reforms, including reinforcing mitigation instruments, public investment, fuel tax reform, green industrial policies, and supporting reforms to the energy sector. Carbon pricing, including ETSs can be the centerpiece of climate mitigation strategies for most countries, particularly if ETSs are designed to mimic some of the administrative and economic attractions of carbon taxes and implemented appropriately. |
| Keywords: | Emissions trading scheme; climate; Asia |
| Date: | 2024–07–19 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/155 |
| By: | Jérôme Deyris (UPN - Université Paris Nanterre) |
| Keywords: | European Central Bank climate change low-carbon transition monetary policy financial stability green central banking, European Central Bank, climate change, low-carbon transition, monetary policy, financial stability, green central banking |
| Date: | 2023–01–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04638404 |
| By: | Thomas, Stefan; Schnurr, Birte; Wagner, Oliver |
| Abstract: | Damit die Wärmewende gelingt, gilt es, den Wärmebedarf durch energetische Modernisierungen - also bessere Dämmung, Wärmerückgewinnung und Energiemanagement - zu senken und auf klimafreundliche Heizungen umzustellen. Das nützt nicht nur dem Klima, sondern kann auch zu mehr sozialer Gerechtigkeit beitragen, wenn die Politik es richtig angeht. In diesem Zukunftsimpuls beschreiben Forschende des Wuppertal Instituts, welche Maßnahmen dafür zielführend sind. Menschen in wirtschaftlich benachteiligten Haushalten wohnen überwiegend zur Miete. Damit für sie - aber auch andere Mieter*innen - die Warmmiete durch die Wärmewende nicht steigt, müsste die Bundesförderung für Mietwohnungen verbessert werden. Aktuell ist sie jedoch bei der Heizungsumstellung für Eigenheime höher. Hier ließe sich entgegenwirken, indem die Förderung von Investitionen zur energetischen Modernisierung und Heizungsumstellung bei Mietwohnungen kurzfristig um mindestens 20 Prozent erhöht würde. Weitere Maßnahmen zur praktischen Unterstützung von Gebäudeeigentümer*innen bei der Umsetzung müssten die Förderung flankieren, um die Wärmewende sozial ausgewogen zu gestalten - eine wesentliche Voraussetzung, um die nationalen Klimaschutzziele zu erreichen. |
| Abstract: | Energy efficiency renovation and green heat will provide higher financial savings than refunds on CO2 pricing or energy price subsidies - if the German financial incentive scheme is enhanced accordingly For a successful heating transition to net zero emission buildings, we need to reduce heat demand through energy efficiency modernisation-i.e., better thermal insulation, heat recovery, and energy management-and to convert the heating systems to zero-carbon technologies. This will not only be for the benefit of the climate but also enhance social equity, if policy-makers do it right. In this "Zukunftsimpuls", researchers from the Wuppertal Institute discuss the facts and the measures that would be appropriate for reaching these objectives. In Germany, people in economically disadvantaged households predominantly live in rented dwellings. For social equity reasons, energy efficiency renovation and heating system conversion should not increase the total rents for these but also for other tenants. According to the analysis, this would require enhancements of German financial incentive scheme for these investments in rented dwellings. Currently, however, the incentive rates are higher for owner-occupied homes and apartments. Therefore, the grants to support energy efficiency renovation and heating system conversion in rented dwellings will need to be increased by at least 20 per cent. In addition, it should be accompanied by further measures that provide practical implementation support to building owners. This would be indispensable for implementing the heating transition while enhancing social equity-which is an important precondition for achieving the national climate change mitigation targets. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wupimp:300663 |
| By: | Aklin, Michaël; Buntaine, Mark T; Mildenberger, Matto |
| Abstract: | International cooperation depends on conditional commitments between states. We examine the politics of conditional commitments in climate change using three experiments in ten major carbon-emitting countries. We specifically investigate whether public pledges of conditional action made by national governments increase public support for ambitious climate action in other countries. We find that only unconditional pledges increase public support for policy ambition in foreign countries. Additionally, countries seeking financial and technical transfers only gain foreign support for transfers when they combine conditional pledges with ambitious unconditional pledges. We also observe that the public in most countries only favors making part of their country’s climate pledge conditional on other countries’ actions when their home country makes an unconditional commitment at or above the average level necessary to prevent dangerous warming. Overall, public preferences are unconditionally aligned with addressing the climate problem. Conditional commitments are more aligned with increasing domestic support for climate policy than unlocking more ambitious settlements between countries. |
| Keywords: | Social and Behavioral Sciences, climate change, conditional commitments, international governance, climate policy |
| Date: | 2023–08–24 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt3mb417zg |
| By: | Böhl Gutierrez, Mauricio; Vega Araújo, José; Arond, Elisa |
| Keywords: | Combustible fósil, Eliminación subvenciones, ACPM, Transición energética, Colombia, Sector transporte, Economía política, Transición justa, Hidrógeno, Efectos socioeconómicos |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:300631 |
| By: | Colciago, Andrea; Priftis, Romanos; Chafwehé, Boris |
| Abstract: | This paper introduces a New Keynesian multi-sector industry model that integrates firm heterogeneity, entry, and exit dynamics, while considering energy production from both fossil fuels and renewables. We investigate the effects of a sustained increase in fossil fuel prices on sectoral size, labor productivity, and inflation. A hike in the price of fossil resources results in higher energy prices. Due to ex-ante heterogeneity in energy intensity in production, the profitability of sectors is impacted asymmetrically.As production costs rise, less efficient firms leave the market, while new entrants must display higher idiosyncratic productivity. While this process enhances average labor productivity, it also results in a lasting decrease in the entry of new firms. A central bank with a strong anti-inflationary stance can circumvent the energy price increase and mitigate its inflationary effects by curbing rising production costs. This policy entails a higher impact cost in terms of output and lower average productivity, but leads to a faster recovery in business dynamism. Thus, our results suggest that monetary policy faces a trade-off between stabilizing aggregate activity and business dynamism. JEL Classification: E62, L16, O33, Q43 |
| Keywords: | energy, firm entry and exit, monetary policy, productivity |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242961 |
| By: | Taguchi, Hiroyuki |
| Abstract: | China’s rapid industrialization and urbanization in recent decades have deteriorated its air environmental quality. This study focuses on air pollutions in terms of CO, NO2, O3, PM2.5, PM10, and SO2 in Chinese provinces. Although the heterogeneity of environmental Kuznets curves (EKCs) from Chinese provinces has been studied, the positions of provincial EKCs (which reflect the province-specific pollution effects not affected by the provincial income levels) have not been investigated to date. Therefore, through a factor analysis of the heterogeneity of provincial pollutions under the EKC framework, we investigate how the governance shortage for pollution control contributes to the provincial pollution levels. We found that the governance shortage for pollution control accounted for about 50-70% of the province-specific air pollution levels. Our results indicate that China still has a much policy space to mitigate air pollutions. Particularly, in the Post-COVID-19 Era when industrial activities are recovered, pollution-control governance would be vital to make China’s economic growth sustainable. |
| Keywords: | air pollutions, pollution-control governance, Chinese provinces, environmental Kuznets curve |
| JEL: | O53 Q53 Q58 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121488 |
| By: | Felix Bierbrauer |
| Abstract: | Should climate policy rely on a price of Carbon that is uniform across sectors? This paper studies this question from a public finance perspective. It is found that a justification for a uniform price can be given, but it relies on strong assumptions, among them indifference with respect to the distributive consequences of climate policy. Distributive considerations may imply that sectors whose output is consumed mostly by “the poor” should contribute less to meeting the government’s emission target, whereas sectors whose output is consumed mostly by “the rich” should contribute more. |
| Keywords: | climate policy, equity-efficiency trade-off, optimal taxation |
| JEL: | D63 H21 H22 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11201 |
| By: | Beniwal, Ezaboo; Kishore, Avinash |
| Abstract: | Over the past few decades Agricultural irrigation in South Asia has emerged to be dominantly groundwater sourced. The size and structure of a region’s groundwater economy is closely intertwined with its energy economy. Until only a few years ago, diesel was the main source of energy for groundwater irrigation in the region while farmers in the rest of South Asia had access to subsidized or free electricity to operate their pumps. With rapid improvements in rural energy supply, this energy-divide is now disappearing. This has potential to change the area’s groundwater energy nexus. Farmers in Bihar, a populous state of India, have installed more than 200 thousand electric pumps for irrigation since 2015. We use data from a representative sample of 1440 farmers from the state to assess the pattern of electrification of groundwater irrigation and its impact on pump ownership, water markets, and water use in agriculture. Electrification of irrigation is skewed towards west and south Bihar. On average, electric pump owners have smaller landholdings than diesel pump owners and they charge significantly lower irrigation fees from water buyers. However, three out of four pump owners report not selling water from their pumps. Farmers using electric pumps—owned or rented—irrigate their crops more intensively and have higher cropping intensity. Near free electricity for irrigation may undermine the fiscal and environmental sustainability of the irrigation led agricultural growth in Bihar. |
| Keywords: | Agricultural and Food Policy, Resource /Energy Economics and Policy |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344383 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | On September 6, 2022, the workshop “ESG: A Barrier or a Solution to the Oil and Gas Investment Emergency?” was held in conjunction with the Arab Petroleum Investment Corporations (APICORP). This workshop had the following objectives: To continue the campaign to inform stakeholders about the alarming low investment situation in the oil and gas sector, which could result in a supply deficit in two to three years unless urgent measures are taken. To analyze the main factors affecting investment attractiveness in the sector, with particular attention to the climate issues that have shifted investors’ priorities to other industries. To analyze the role of environmental, social, and corporate governance (ESG) scores and strategies and possible solutions that could help the oil and gas industry attract more investment and, at the same time, cope with its sustainability responsibilities. |
| Keywords: | Agreement, Allocations, Alternative fuels, Balance |
| Date: | 2023–02–06 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2022-wb11 |
| By: | Carry, Inga |
| Abstract: | The European Union (EU) is aiming to strengthen its cooperation with like-minded countries to secure its supply of so-called critical raw materials. European Commission President Ursula von der Leyen considers Canada a "perfect match" - a resource-rich and reliable partner that shares the EU's geopolitical interests and sustainability goals. Canada is seeking to diversify its supply chains and counteract the influence of Chinese actors in its mining industry through a policy of friendshoring. To this end, the Canadian government has shown itself to be far more open to cooperation with the EU regarding raw material supply chains and key industries compared to the United States (US) government. It would be beneficial for both sides to deepen this cooperation. However, to truly make this partnership a perfect match, the EU should offer stronger financial incentives for the integration of European and Canadian industries, promote scientific exchange and technical collaboration, and advocate for robust corporate due diligence in supply chains. |
| Keywords: | Kritische Rohstoffe, Strategische Rohstoffe, Lithium, Graphit, Nickel, Kobalt, Kupfer, Seltene Erden, Kathodenaktivmaterial, CAD, Critical Raw Materials Act, CRMA, Manitoba, Saskatoon, Saskatchewan, Yukon, Ring of Fire, ESG, ESG+1, Mineral Security Partnership, MSP, Benefits-Sharing Framework, EU Corporate Sustainability Due Diligence Directive, CSDDD, Canada, EU, European-Canadian raw materials partnership, raw material supply chains, Critical Raw Materials Act, CRMA, Canada's critical raw materials strategy, mineral and metallic raw materials, rare earth elements, REE, mining industry, decoupling, ESG, sustainability standards, Indigenous peoples |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:300625 |
| By: | Katherine Hassett; Rose Mba Mebiame; Aline Mortha; Miwa Nakai; Helene Ahlborg; Kavya Michael; Ugur Ozdemir; Ioannis Tikoudis; Nicolina Lamhauge; Olufolahan Osunmuyiwa; Toshi Arimura; Nick Johnstone |
| Abstract: | This paper offers insights on the factors that determine household choices related to energy use, based on data from the third OECD Survey on Environmental Policies and Individual Behaviour Change (EPIC). The analysis profiles households according to patterns in reported energy use and investment in energy-related technologies, assesses the factors driving such decisions and estimates households’ willingness to pay to reduce the emissions of the electricity they use. Results suggest that the feasibility of installing low-emissions energy technologies appears to remain a key obstacle to their uptake, and that households are willing to pay a small but positive premium for electricity produced with fewer emissions. The presence of cross-country differences in behaviours and preferences signals the importance of considering local factors in approaches to energy policies. Environmental concern and environmental motivation increase engagement in sustainable choices, pointing to the cross-cutting relevance of policy efforts to improve environmental knowledge and awareness. |
| Keywords: | energy conservation, energy efficiency, household behaviour, residential energy consumption |
| JEL: | D12 D91 Q40 Q42 Q54 C25 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:oec:envaaa:247-en |
| By: | Müller, Melanie |
| Abstract: | Nach herben Verlusten bei den Wahlen Ende Mai 2024 wurde der African National Congress (ANC) zum ersten Mal in der Geschichte des demokratischen Südafrikas gezwungen, eine Koalitionsregierung einzugehen. Unter Führung von Cyril Ramaphosa (ANC) haben sich zehn Parteien auf die Bildung einer Regierung der nationalen Einheit (Government of National Unity, GNU) verständigt. Wegen der Dominanz des ANC in dieser Koalition sind kaum gravierende Umbrüche zu erwarten. Erste politische Entscheidungen der GNU deuten sogar darauf hin, dass die Zusammenarbeit mit Südafrika für Deutschland und die EU in den nächsten Jahren einfacher werden könnte. Deutsche und europäische Akteure sollten diesen Moment nutzen, um die bilateralen Beziehungen zu intensivieren und neue außenpolitische Initiativen vorzubereiten, vor allem in der Rohstoffkooperation. |
| Keywords: | Südafrika, Einheitsregierung, Government of National Unity, ANC, Ramaphosa, Zuma, Just Energy Transition Partnership, JETP, Rohstoffkooperation, Korruptionsbekämpfung |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpakt:300627 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Aviation is crucial for connecting people and countries worldwide. Although aviation carriers, manufacturers, and governments have all aimed to increase energy efficiency through significant technological advances over recent decades, this transport mode has struggled to find alternatives to fossil-based fuels. However, recent developments in low-carbon aviation fuel (LCAF), sustainable aviation fuel (SAF), hydrogen-based fuel, and electric power have improved the sustainability of the sector. As a result, a better understanding of the current use, future development, and new challenges of energy sources is essential for the future of the aviation industry. |
| Keywords: | Aviation oil consumption, Aviation oil demand, Crude oil, Diesel |
| Date: | 2022–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2022-wb05 |
| By: | Cabrini, Silvina; Olemberg, Demián; Cristeche, Estela; Pace, Ignacio; Amaro, Ignacio Benito |
| Abstract: | Climate change poses a challenge to agri-food systems. Recognizing the need for emission reduction, the European Union (EU) is contemplating the integration of the agricultural sector into formal carbon pricing mechanisms. This study employs the CLIMTRADE model to assess the potential consequences of a EU's carbon border adjustment mechanism (CBAM) on beef trade for Argentina, Brazil and Uruguay. The model considers a baseline bilateral trade matrix, emission intensities, international transport emissions, and potential carbon prices, resulting in the corresponding impacts on imports and exports, depending on the scenario considered. The results indicate that imposing a carbon tax within the EU leads to reduced beef imports, increased domestic prices, and potential carbon leakage. However, deploying a CBAM could mitigate carbon leakage and further reduce emissions. This study contributes to the discussion on the consequences for livestock production in South America of the advancement of emission reduction policies in agriculture driven by developed countries and their implications for the configuration of international trade. |
| Keywords: | Environmental Economics and Policy, International Relations/Trade |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344399 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Hydrogen is projected to play an important role in meeting decarbonization targets. Hydrocarbon-rich countries perceive this as an opportunity to decarbonize existing assets and monetize undeveloped hydrocarbon reserves. Meanwhile, non-traditional energy exporters rich in renewable energy resources view hydrogen as an opportunity to improve grid stability and a means to export surplus electricity. |
| Keywords: | Carbon, Carbon capture and storage, Carbon neutrality, Hydrogen |
| Date: | 2023–03–21 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2022-wb08 |
| By: | Cullen S. Hendrix (Peterson Institute for International Economics) |
| Abstract: | This Policy Brief assesses the prospects for three Sub-Saharan African countries--Madagascar, Mozambique, and Tanzania--for providing stable supplies of natural graphite to the US market, considering both domestic factors in the three countries and US policies established by the Inflation Reduction Act. These countries have adequate graphite resources and operators headquartered in Western allies. The problem is that there are significant governance-related challenges in Madagascar and Mozambique and some domestic challenges to incorporating East African graphite into US electric vehicle supply chains. US critical mineral sourcing policies will need to be modified to facilitate greater involvement of African producers in US graphite supply chains. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:iie:pbrief:pb24-5 |
| By: | Kaifang Luo; Yueming Lucy Qiu; Pengfei Liu; Yingdan Mei |
| Abstract: | Carbon capture, utilization, and storage (CCUS) techniques are vital to decarbonization goals. A CCUS supply chain captures CO₂ and delivers it to a suitable location where CO₂ can either be used or injected deep underground for long-term storage. CCUS projects reduce carbon emissions but also pose certain risks to local communities. Using nationwide CCUS data combined with property-level transaction records from 1990 to 2021 in the U.S., we quantify the net impact of proximity to CCUS projects on nearby housing prices in light of their positive and negative externalities. The results show that proximity to CCUS projects leads to a price premium on nearby house sales prices, but such effects disappear beyond the 4.2-km buffer. Compared to homes without CCUS projects nearby, houses with CCUS projects within 4.2 km typically command a price premium of 3.90% (or $8, 582). CCUS deployment could be facilitated with a more detailed explanation of the housing price premium. The observed increase in property values near CCUS operations in the U.S. provides insights that could inform CCUS project development in other regions, though local regulatory and socio-economic factors must be carefully considered. |
| JEL: | Q4 Q51 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32713 |
| By: | Bekele, Rahel Deribe; Jeuland, Marc; Munson, Dylan |
| Abstract: | Rural households in Ethiopia mainly depend on agriculture for their livelihood and most commonly use traditional biomass as their primary domestic energy source. Using data collected from 925 rural households and 3, 241 plots in four regions of Ethiopia, this study examines the determinants of fuel choice in rural Ethiopia, and the impact of biomass fuel scarcity on agricultural labor supply, yields, and returns, across the irrigation/dry, Meher, and Belg cropping seasons. We show that the shadow price of biomass energy sources, which are largely collected from the environment, and the market prices of charcoal and kerosene as well as indicators of wealth, are important determinants of households’ fuel choices. Our findings further indicate that the scarcity of biomass fuel, proxied by shadow price, has a negative and significant effect on agricultural labor supply in the irrigation and Belg seasons, which in turn affects yields and returns from agriculture. This suggests the importance of addressing domestic fuel scarcity alongside efforts to enhance agricultural productivity in rural areas, particularly when introducing interventions such as irrigation. |
| Keywords: | Consumer/Household Economics, Farm Management, Resource /Energy Economics and Policy |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp15:344395 |
| By: | Brehm, Margaret E.; Brehm, Paul A.; Cassidy, Alecia; Cassidy, Traviss |
| Abstract: | We examine the economic impacts of natural resource revenue-sharing systems, where central governments transfer a portion of resource revenue to producing regions. Using a natural experiment in Indonesia, we separately identify the effects of shared revenue and resource extraction. Contrary to Dutch disease concerns, shared oil and gas revenue does not harm local manufacturing firms, while extraction promotes manufacturing growth. Both extraction and shared revenue significantly raise local non-oil GDP. We find suggestive evidence of larger gains from shared revenue in areas without onshore extraction, implying central governments could improve aggregate welfare by channeling more resource revenue toward resource-poor areas. |
| Keywords: | Growth, resource booms, decentralization, manufacturing firms, Indonesia, Dutch disease |
| JEL: | H77 O13 O14 Q32 Q33 |
| Date: | 2024–07–09 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121428 |
| By: | Bobasu, Alina; Dobrew, Michael; Repele, Amalia |
| Abstract: | We study how monetary policy shapes the aggregate and distributional effects of an energy price shock. Based on the observed heterogeneity in consumption exposures to energy and household wealth, we build a quantitative small open-economy HANK model that matches salient features of the Euro Area data. Our model incorporates energy as both a consumption good for households with non-homothetic preferences as well as a factor input into production with input complementarities. Independently of policy energy price shocks always reduce aggregate consumption. Households with little wealth are more adversely affected through both a decline in labor income as well as negative direct price effects. Active policy responses raising rates in response to inflation amplifies aggregate outcomes through a reduction in aggregate demand, but speeds up the recovery by enabling households to rebuild wealth through higher returns on savings. However, low-wealth households are further adversely affected as they have little savings to rebuild wealth from and instead loose due to further declining labor income. JEL Classification: E52, F41, Q43 |
| Keywords: | energy prices, heterogeneous agents, monetary policy, non-homothetic preferences, open economy model |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242967 |
| By: | Muhammad Haris Saleem; S. Wajahat Ali; Sheikh Abdullah Shehzad |
| Abstract: | The global transportation industry has become one of the main contributors to air pollution. Consequently, electric buses and green transportation are gaining popularity as crucial steps to reduce emission concerns. Many developed countries have already adopted the concept of Battery Electric Buses (BEBs), while the developing ones are just starting with it. However, BEB fleets have advantages, such as lower fuel, higher efficiency, lower maintenance, and energy security. Yet, several obstacles must be overcome to support the mass deployment of BEBs. These incorporate forthright expense charges, arranging loads, BEB reach, and newness to BEB innovation. Stakeholders like policymakers, private company owners, and government leaders have a lot to consider before introducing BEBs at any level in Pakistan. As a result, to operate an electric bus system profitably, it is crucial to develop a proper electric bus network and fleet, especially for bus operators who need to buy enough electric buses at the appropriate time. As a result, this paper aims to investigate if operating an electric bus could be an alternative to regular bus operations. The proposed methodology develops modeling software to cater to various scenarios to determine a proper-designed electric bus operating system in terms of the electric bus route, service frequency, and quantity. This research work simulates and financially analyses an operating Public Transport Infrastructure with a proposed Green Solution. The results show that regardless of the high upfront costs of BEB infrastructure, it becomes profitable in 6-7 years, resulting in a decreased Total Cost of Ownership (TCO) of approximately 30% of its counterpart. The study also provides a clear policy pathway to help stakeholders make informed decisions related to the electrification of public transport in Pakistan. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.20139 |
| By: | Andres, Pia; Mealy, Penny; Handler, Nils; Fankhauser, Sam |
| Abstract: | This corrigendum resolves an error in the list of green products used to construct the product and country ‘Green Transition Outlook’ measures, as well as trends in overall green trade volume. |
| JEL: | N0 |
| Date: | 2024–08–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124374 |
| By: | Fahimeh Asgari; Seyedeh Gol Ara Ghoreishi; Matin Khajavi; Ali Foozoni; Ali Ala; Ahmad Gholizadeh Lonbar |
| Abstract: | Energy usage and GDP have been the subject of numerous studies over the past decades. It has been overlooked by previous studies that energy consumption correlates with economic growth in relation to GDP. This study uses threshold regression and Granger causality testing to identify GDP-dependent causality in ten OECD countries over the last 10 years. There is a significant correlation between economic growth and energy consumption. Energy consumption and short-term economic growth are statistically significantly correlated. There is a significant positive effect of energy consumption (EC) on GDP in the short run below the threshold of \$10, 936 USD since the coefficient is 3.34 and the p-value is 0.0252. There is a -0.0127-correlation coefficient and a 0.0327 p-value associated with GDP Granger-cause EC over the long run. EC and GDP are not causally related for GDP per capita above \$10, 936 USD. In the long run, GDP Granger causes EC with a coefficient of -0.1638 and a p-value of 0.0675. According to the study, sustainable development requires sustainable use of natural resources, technological investment, foreign direct investment, and gross fixed capital formation. Economic growth can be boosted while adhering to sustainability goals by implementing these recommendations. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.09711 |
| By: | Pouya Janghorban; Temilade Sesan; Muhammad-Kabir Salihu; Olayinka Ohunakin; Narges Chinichian |
| Abstract: | Rural electrification initiatives worldwide frequently encounter financial planning challenges due to a lack of reliable market insights. This research delves into the preferences and marginal willingness to pay (mWTP) for upfront electricity connections in rural and peri-urban areas of Nigeria. We investigate discrete choice experiment data gathered from 3, 599 households and 1, 122 Small to Medium-sized Enterprises (SMEs) across three geopolitical zones of Nigeria, collected during the 2021 PeopleSuN project survey phase. Employing conditional logit modeling, we analyze this data to explore preferences and marginal willingness to pay for electricity connection. Our findings show that households prioritize nighttime electricity access, while SMEs place a higher value on daytime electricity. When comparing improvements in electricity capacity to medium or high-capacity, SMEs exhibit a sharp increase in willingness to pay for high-capacity, while households value the two options more evenly. Preferences for the electricity source vary among SMEs, but households display a reluctance towards diesel generators and a preference for the grid or solar solutions. Moreover, households with older heads express greater aversion to connection fees, and male-headed households show a stronger preference for nighttime electricity compared to their female-headed counterparts. The outcomes of this study yield pivotal insights to tailor electrification strategies for rural Nigeria, emphasizing the importance of considering the diverse preferences of households and SMEs. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2407.15757 |
| By: | Tröster, Bernhard; Papatheophilou, Simela; Küblböck, Karin |
| Abstract: | The Critical Raw Materials Act (CRMA) is a key EU legislation aimed at securing critical raw materials (CRMs) for green, digital, and defense sectors by enhancing extraction, processing, and recycling within the EU. It introduces measures to expedite permitting for strategic projects focused on strategic raw materials (SRMs), granting them "public interest" status and imposing stricter timelines. Our assessment indicates that while the CRMA could shorten permit processes, it will not significantly reduce overall project lead times. Concerns include reduced public participation in environmental impact assessments, as well as political influence and transparency deficiencies in the tasks of the European Commission. Despite introducing obligations for recycling and exploration, challenges such as low social acceptance, high costs, and administrative and budgetary burdens hinder the CRMA's goals. Crucially, the CRMA lacks a focus on reducing resource use, which is necessary to mitigate the environmental and social impacts of raw material projects. |
| Keywords: | Critical Raw Materials Act, Strategic Raw Materials, Mineral policies |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:oefser:300693 |
| By: | John List; Ioannis Pragidis; Michael Price |
| Abstract: | Prosumers are becoming increasingly important in global energy consumption and production. We partner with an energy service provider in Sweden to explore the economics facing such agents by conducting a natural field experiment over a 32-month period. As a policy instrument, we explore how simple nudges affect choices on both the consumption and production sides. Importantly, with the added flexibility to influence both sides of the market, and with a rich data set that permits an analysis of intraday, intraweek, and seasonal variation, we can detail effects on overall conservation efforts, intertemporal substitution, load shifting, and net purchases from the grid. The overarching theme is that nudges have the potential to have an even greater impact on the energy market with prosumers compared to their portmanteau components. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:feb:natura:00791 |
| By: | Pies, Ingo; Schultz, Felix Carl |
| Abstract: | Der Weltklimarat (IPCC) hat jüngst eine Autorengruppe wohlwollend rezipiert, die die These vertritt, Klimaschutz könne (nur) durch Wachstumsverzicht - durch Nullwachstum und besser noch durch Negativwachstum - ambitioniert vorangetrieben werden. Wir rekonstruieren diese spezifische Degrowth-Argumentation und konfrontieren sie aus der Perspektive des ordonomischen Forschungsprogramms mit zwei kritischen Anfragen. Im Ergebnis sehen wir uns veranlasst, die im Titel aufgeworfene Frage zu verneinen. Unsere Gegenargumente lauten: (a) Degrowth verkennt die zivilisatorischen Vorzüge der postmalthusianischen Wachstumsgesellschaft. (b) Degrowth nimmt die klimapolitische Herausforderung nicht ernst genug. Insbesondere wird unterschätzt, dass die zum Klimaschutz für nötig gehaltenen Innovationen unternehmerischer Anstrengungen bedürfen und insofern marktwirtschaftliche Leistungsanreize voraussetzen. |
| Abstract: | The Intergovernmental Panel on Climate Change (IPCC) recently published a favourable assessment of a group of authors who argue that climate protection can only be ambitiously advanced by foregoing growth - through zero growth or, even better, through negative growth. We reconstruct this specific degrowth argumentation and confront it with two critical questions from the perspective of the ordonomic research program. As a result, we feel compelled to answer the question raised in this article's title in the negative. Our counter-arguments are: (a) Degrowth fails to recognize the civilizational advantages of the post-Malthusian growth society. (b) Degrowth does not take the climate challenge seriously enough. In particular, this specific group of degrowth proponents underestimates that the innovations considered necessary for climate protection presuppose entrepreneurial efforts and therefore require market-based performance incentives. |
| Keywords: | Degrowth, grünes Wachstum, Innovation, Klimapolitik, post-malthusianische Gesellschaft, Green Growth, Climate Policy, Post-Malthusian Society |
| JEL: | B59 O44 Q54 Q57 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:mlucee:300639 |
| By: | Manthos D Delis (Audencia Recherche - Audencia Business School); Kathrin De Greiff (Swiss Finance Institute); Maria Iosifidi (Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Steven Ongena (UZH - Universität Zürich [Zürich] = University of Zurich) |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04636040 |
| By: | Santana, Roberto |
| Abstract: | En este documento se presenta una propuesta de marco regulatorio para baterías fuera de uso provenientes de la electromovilidad. Esta propuesta es el resultado del examen de las regulaciones existentes en el mundo y su adaptación a las condiciones de América Latina y el Caribe. Se sugiere como un marco regulatorio que establece los requisitos de ingreso, reciclaje y utilización en segunda vida de las baterías producto de la electromovilidad para almacenamiento estacionario de energía. Avanzar en la utilización de las baterías mediante el reciclaje o de una eventual segunda vida presenta una serie de ventajas, ya que las baterías usadas se convierten en una fuente valiosa de materiales y energía que evita, por ejemplo, la extracción adicional de recursos naturales. El marco regulatorio propuesto puede ser de interés para varios países, ya que se diseñó para poder adaptarlo a las realidades y condiciones específicas de cada uno de ellos. |
| Date: | 2024–07–10 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80474 |
| By: | Klingebiel, Stephan |
| Abstract: | "This policy brief provides an overview and assessments of debates on development policy. In view of changing international contexts, it addresses the need to reorient German development policy in the long term and initiate reforms. Five recommendations for decision-makers are formulated: 1. "Open strategic autonomy" for development policy: Development policy should play an independent and complementary role when supporting partners from the Global South and providing global public goods. "Open strategic autonomy" could integrate different policy areas and actors, but at the same time maintain a certain degree of autonomy in order to act effectively. 2. Redefining goals: Development policy is often seen as purely altruistic and humanitarian, but it should rather be understood as a soft power instrument. Such an understanding could help to break away from the restrictive discourse on values and interests. 3. Interface management and ministerial customisation: There are debates about coordination between ministries and whether an independent development ministry (BMZ) is necessary. More effective interface management and the bundling of humanitarian aid and development cooperation could increase efficiency and effectiveness. The current coalition agreement provides for greater coordination of development policy funds, but progress so far has been limited. In principle, there are reasons in favour of an independent development policy department in Germany. 4. Strategic orientation during implementation: Policy-based financing should play a greater role in order to provide more comprehensive support for reforms and transformations. It is advisable to switch from supply-orientated to demand-orientated development cooperation. By critically scrutinising tied services, competition and choice for partner countries can be strengthened. As is shown by the Just Energy Transition Partnerships and the European Global Gateway Initiative, more new solutions are needed. 5. Dealing with populist and right-wing nationalist movements: Development policy is increasingly under attack from right-wing and populist movements. These attacks are intended to undermine social consensus. In response, these attacks can be ignored or the bogus arguments can be invalidated. In order to counter the changed situation, the democratic parties in the German Bundestag should strive for a new cross-party consensus on development policy. To summarise, it is necessary to focus less on the populist project-related debates. What is needed is a more strategic and long-term perspective on development policy that systematically integrates various political and social interests and offers the prospect of flexible and partnership-based implementation. |
| Keywords: | Development cooperation, development policy, Germany, populism, Global South, geopolitics, geoeconomics, climate finance, migration, Federal Ministry for Economic Cooperation and |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:300633 |
| By: | De Miguel, Carlos J.; Lorenzo, Santiago; Ferrer, Jimy; Gómez, José Javier; Alatorre, José Eduardo |
| Abstract: | La fijación de precios del carbono es una de las opciones de política pública para desincentivar las actividades de producción y consumo que generan emisiones de gases de efecto invernadero (GEI). En este documento se presenta un panorama del uso de la fijación de precios del carbono en América Latina y el Caribe, así como de otras políticas económicas asociadas. Se incluye un examen del estado de los precios explícitos del carbono, como los impuestos al carbono, los sistemas de permisos de emisiones transables, y también los precios implícitos, como el precio social del carbono, que se incluye dentro de la evaluación de la inversión pública. Destaca en este sentido que el uso de estos instrumentos de precios es aún escaso en la región y, además, tiene una baja cobertura en términos de GEI. Por el contrario, es más frecuente el uso de los subsidios a los combustibles fósiles (precio negativo del carbono): los presupuestos que se destinaron a estos subsidios entre 2013 y 2022 fue casi diez veces mayor al financiamiento climático. En el documento se analizan dos escenarios de reforma de los subsidios a los combustibles fósiles y se muestran sus efectos económicos, sociales y ambientales. |
| Date: | 2024–07–22 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80499 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The circular carbon economy (CCE) is an energy transition framework that is based on a holistic, technology-neutral and country context-sensitive approach to achieving net-zero emissions. It embraces all available technologies and tools, from renewable energy to carbon capture and storage (CCS). In November 2021, KAPSARC launched the first edition of the CCE Index, which is a composite indicator that enables cross-country comparisons on two related aspects: how countries are currently performing on the CCE, and how they are positioned to make progress toward CCEs and carbon or greenhouse gas (GHG) emissions neutrality. |
| Keywords: | Air conditioning, Applied general model, Article 6, Blockchain, Circular Carbon Economy |
| Date: | 2023–03–05 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2022-wb06 |
| By: | Thielges, Sonja |
| Abstract: | Für den weltweiten Klimaschutz spielen die USA im "Super-Wahljahr" 2024 eine herausragende Rolle. Denn nach bisher dreieinhalb Jahren, in denen Präsident Joe Biden immense Erfolge im Klimaschutz gelangen, könnte ihm nun laut aktuellen Prognosen Donald Trump folgen. Trump nutzte bereits seine erste Präsidentschaft (2017-2021), um die Klimaschutzmaßnahmen der Vorgängerregierung weitgehend rückgängig zu machen. Dies hat er auch nach einem möglichen Wahlsieg im November vor. Konservative Think-Tanks haben ihm dafür mit dem "Mandate for Leadership" eine detaillierte Blaupause erstellt. Eine Rückkehr Trumps ins Weiße Haus wäre ein fataler Schlag für den Klimaschutz. Denn viele klimapolitische Maßnahmen der Biden-Regierung könnte eine zweite Trump-Administration streichen. Aber nicht alle. Die Zukunft der US-Klimapolitik hängt maßgeblich vom Wahlergebnis für das Weiße Haus, den Kongress, aber auch von den Fortschritten in den US-Bundesstaaten ab. Auch eine weitere demokratische Administration müsste jedoch nachlegen, um die Klimaziele der USA zu erreichen. |
| Keywords: | Dekarbonisierung, Methanemissionen, Environmental Protection Agency, EPA, Loan Programs Office, LPO, Federal Sustainability Plan, Infrastructure Investment and Jobs Act, CHIPS and Science Act, Inflation Reduction Act, IRA, Local-Content-Klausel, Justice40, Priority Climate Action Plan, PCAP, Halbleiter, Climate Caucus, Mandate for Leadership, Project 2025, Carbon Capture and Storage, CSS, Carbon Capture and Utilization, CCU, Kamala Harris, Texas, New Mexico, Pennsylvania |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpakt:300626 |
| By: | Mario Liebensteiner; Jakob Losert; Sarah Necker; Florian Neumeier; Jörg Paetzold; Sebastian Wichert |
| Abstract: | In 2022, Germany introduced a temporary 9-euro monthly ticket for unlimited local and regional public transport. We investigate its impact on mobility patterns, including increased public transport usage, reduced car traffic, and rail network congestion. Using difference-in-difference and event-study analyses with GPS-based mobility, traffic volume, and rail traffic data, we find limited substitution between transportation modes, a strong increase in leisure train journeys, and notable adverse effects on rail infrastructure quality. These effects dissipate after the ticket’s expiration. Our study suggests caution regarding the expected environmental benefits of nearly fare-free ’go-anywhere’ public transport tickets, which are discussed in several countries. |
| Keywords: | fare-free public transport, mobility patterns, traffic volume, mode choice, transport subsidies |
| JEL: | R12 R41 R42 R48 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11229 |
| By: | Ben Groom; Frank Venmans |
| Abstract: | An economic approach to calculating the Social Value of Temporary Reductions (SVTR) in atmospheric carbon is discussed. The SVTR allows different carbon removals projects to be prioritised in a way that maximises welfare and establishes equivalence between temporary, risky removals with permanent ones in terms of avoided welfare losses from climate damages. The approach is compared to previous attempts in the physical and natural sciences and economics to price temporary emissions reductions, none of which successfully integrate economics and climate science. Applications of the SVTR exist in public project appraisal, Life Cycle Analysis, pricing carbon debts and determining short term carbon credit and offset contracts. Potential criticisms of equivalence measures and tonne-year accounting stemming from concerns that temporary removals do not impact long-term temperatures are shown to be special cases of our integrated economic approach. Temporary removals provide transitory cooling benefits and if repeated are equivalent to permanent solutions. They also can have permanent effects via learning by doing or reducing the likelihood of tipping points. The SVTR helps determine how temporary removals can fit into an efficient response to climate. Ruling out temporary removals and equivalence, and the intertemporal transfers that they imply, could unnecessarily tie the hands of policy makers. |
| JEL: | Q54 Q57 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32734 |
| By: | Baraldi, Anna Laura; Fosco, Giovanni |
| Abstract: | Differing attitudes towards environmental issues between men and women as policymakers may affect policies and actions. Accordingly, this research analyses the issue of the causal relationship between women politicians and the level of air pollution. The analysis tests for this in Italy, exploiting a gender quota measure (Law 215/2012) as an exogenous shock to the percentage of female municipal councilors. Difference-indifferences instrumental variable approach finds that an increase in the percentage of female councilors decreases the maximum number of days in which at least one type of monitoring stations (among all the stations installed in the provincial capital municipality) has detected an excess of PM10 with respect to its daily limit. This research provides evidence of the most likely mechanism driving the results by proving that an increase in female officeholders has a positive impact on a number of environmental friendly policies and measures (as the bicycle lanes, the urban green, the bike- and carsharing services, district heating and traffic blockage) aimed at reducing the harmful air particles. |
| Keywords: | Air pollution, Gender quotas, Municipal elections, Female politicians |
| JEL: | C26 D72 J16 Q53 |
| Date: | 2024–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121377 |
| By: | Campiglio, Emanuele; Lamperti, Francesco; Terranova, Roberta |
| Abstract: | We develop a dynamic model where heterogeneous firms take investment decisions depending on their beliefs on future carbon prices. A policy-maker announces a forward-looking carbon price schedule but can decide to default on its plans if perceived transition risks are high. We show that weak policy commitment, especially when combined with ambitious mitigation announcements, can trap the economy into a vicious circle of credibility loss, carbon-intensive investments and increasing risk perceptions, ultimately leading to a failure of the transition. The presence of behavioural frictions and heterogeneity - both in capital investment choices and in the assessment of the policy-maker's credibility - has strong non-linear effects on the transition dynamics and the emergence of ‘high-carbon traps’. We identify analytical conditions leading to a successful transition and provide a numerical application for the EU economy. |
| Keywords: | behavioural macroeconomics; beliefs; credibility; heterogeneous expectations; investment decision-making; low-carbon transition; policy uncertainty |
| JEL: | D84 C63 Q54 Q58 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124234 |
| By: | Hunnicutt, Patrick; Henderson, Geoffrey |
| Abstract: | Addressing policy failures such as crime, violence, and vulnerability to natural disasters often requires broad-based political participation. Prior research suggests policy failures themselves mobilize individuals to engage in politics, yet questions remain about how policy failures affect participation in the aggregate. While policy failures may make individuals more likely to participate, they also may undermine the collective action necessary to influence policy. We investigate the relationship between policy failures and aggregate-level political participation using the case of air pollution, a global threat to public well-being. Our research design leverages variation in particulate matter 2.5 dispersed by wind to estimate the effect of air pollution on county-level political participation in the United States. Our results show that air pollution undermines participation, likely because its health effects weaken individual and collective capacities for mobilization. Policy failures can be self-reinforcing—by undermining the prospects for mass mobilization, pollution may beget more pollution. |
| Keywords: | Social and Behavioral Sciences, pollution, policy failures, collection action, political participation, mobilization |
| Date: | 2023–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt51h8846s |
| By: | Adolphsen, Ole; Könneke, Jule; Thielges, Sonja |
| Abstract: | Die Vertragsstaaten des Pariser Klimaabkommens (PA) sind verpflichtet, bis zum 10. Februar 2025 neue national festgelegte Klimabeiträge (nationally determined contributions, NDCs) mit Zielen für das Jahr 2035 einzureichen. Diese "NDCs 3.0" sollen als umfassende Investitions- und Transformationspläne die Ergebnisse der ersten Globalen Bestandsaufnahme (Global Stocktake, GST) berücksichtigen, die auf der COP 28 in Dubai abgeschlossen wurde, und das 1, 5-Grad-Ziel in Reichweite halten. Verhärtete Positionen zwischen Entwicklungs- und Industrieländern und der Konflikt um Finanzierung erschweren jedoch den Aufbau einer progressiven Koalition zur Entwicklung ambitionierter NDCs. Durch intensivere technische Unterstützung, diplomatische Initiativen und die Einbindung Brasiliens als Schlüsselakteur könnten Deutschland und die EU neuen Schwung in den NDC-3.0-Prozess bringen. |
| Keywords: | NDC 3.0, nationale Klimabeiträge, nationally determined contribution, NDC, Global Stocktake, GST, Pariser Klimaabkommen, UNFCCC, Just Energy Transition Partnerships, JETP, new collective quantified goal, NCQG |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpakt:300624 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Natural gas is a feedstock for the petrochemical industry and a fuel of choice in the power sector to help transition toward clean, sustainable, and affordable energy. As vital as gas is for electricity generation, the petrochemical industry, and the transportation sector, many oil operators flare or vent associated gas as a by-product of oil extraction at the wellhead or gathering stations. |
| Keywords: | Coal bed methane, Applied general model, Bottom up model, Deep water |
| Date: | 2022–10–16 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2022-wb02 |
| By: | Mert Demirer; Ömer Karaduman |
| Abstract: | Using rich data on hourly physical productivity and thousands of ownership changes from US power plants, we study the effects of acquisitions on efficiency and underlying mechanisms. We find a 2% average increase in efficiency for acquired plants, beginning five months after acquisitions. Efficiency gains rise to 5% under direct ownership changes, with no significant change when only parent ownership changes. Investigating the mechanisms, three-quarters of the efficiency gain is attributed to increased productive efficiency, while the rest comes from dynamic efficiency through changes in production allocation. Our evidence suggests that high-productivity firms buy underperforming assets from low-productivity firms and make them as productive as their existing assets through operational improvements. Finally, acquired plants improve their performance beyond efficiency by increasing output and reducing outages. |
| JEL: | L22 L25 L40 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32727 |
| By: | Moritz A. Drupp; Jasper N. Meya; Björn Bos; Simon Disque |
| Abstract: | We study the heterogeneity of preferences regarding the limited substitutability of environmental public goods vis-a-vis private consumption goods and how it affects the economic valuation of environmental public goods. We show theoretically that mean marginal willingness to pay for an environmental public good decreases in society’s mean substitutability preference and increases in the heterogeneity of individual-level substitutability preferences. We then introduce an experimental framework to elicit individual-level substitutability preferences for the first time directly, which we apply to study general population preferences concerning the trade-off between market goods and forest ecosystem services. We estimate preference parameters for almost 1, 500 individuals and document substantial preference heterogeneity. The majority of individual preferences imply a complementary relationship, with a median elasticity of substitution (complementarity) of around 0.4 (2.5). We show that accounting for heterogeneity in substitutability preferences may considerably increase the societal value attached to environmental public goods. These findings are relevant for environmental cost-benefit analysis and for the comprehensive accounting of public natural capital. |
| Keywords: | substitutability, complementarity, heterogeneous preferences, non-market valuation, experiment, donations, public goods, policy appraisal |
| JEL: | Q51 Q56 H41 D64 C99 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11197 |
| By: | Gao, Xinchuchu |
| Abstract: | In order to achieve the goal of climate neutrality, while also enhancing Europe’s industrial competitiveness on the global stage, the acceleration of the twin – green and digital – transitions has been among the top priorities for the European Union (EU). Given the multiplicity of policy areas involved in these twin transitions as well as the nature of the EU as a multilevel organisation, coherence is the key requirement for the twin transitions to be successful. Drawing on the concept of coherence, this article explores whether the EU can be considered a coherent actor when pursuing the twin transitions. It understands coherence as a process to reduce contradictions across different policy domains rather than as a status where no contradictions exist. It also challenges previous views centred solely on coherence during policy implementation, and proposes a broader assessment that begins by framing different policy domains as mutually beneficial and aligned towards common goals. This perspective introduces two dimensions of coherence – conceptual and operational – along horizontal and vertical levels. By examining how policies are framed and interconnected across different levels of governance and policy agendas, this study reveals that while the link between the green and digital transitions and the need for coordination across different governance levels has been widely accepted, conceptual coherence varies across governance levels and policy areas. Furthermore, the study argues that operational coherence – putting ideas into practice – lags behind conceptual coherence, which highlights the challenges of implementing the twin transitions effectively. |
| Keywords: | European Union; climate neutrality; green and digital twin transitions; digitalisation; coherence |
| JEL: | N40 N43 |
| Date: | 2024–06–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124203 |
| By: | Matzner, Anna; Steininger, Lea |
| Abstract: | We study the heterogeneous pass-through of carbon pricing on investment across firms. Using balance sheet data of 1.2 million European firms and identified carbon policy shocks, we find that higher carbon prices reduce investment, on average. However, less carbon-intensive firms and sectors reduce their investment relatively more compared to otherwise similar firms after a carbon price tightening shock. Following carbon price tightening, firms in demand-sensitive industries see a relative decrease not only in investment but also in sales, employment and cashflow. Moreover, we find no evidence that higher carbon prices incentivise carbon-intensive firms to produce less emission-intensively. Overall, our results are consistent with theories of the growth-hampering features of carbon price increases and suggest that carbon pricing policy operates as a demand shock. JEL Classification: Q54, Q58, D22, H23 |
| Keywords: | carbon pricing, climate crisis, corporate finance, economic growth, public policy |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20242958 |
| By: | Robert W. Hahn; Nathaniel Hendren; Robert D. Metcalfe; Ben Sprung-Keyser |
| Abstract: | What are the most effective ways to address climate change? This paper extends and applies the marginal value of public funds (MVPF) framework to help answer this question. We examine 96 US environmental policy changes studied over the past 25 years. These policies span subsidies (wind, residential solar, electric and hybrid vehicles, vehicle retirement, appliance rebates, weatherization), nudges (marketing, energy conservation), and revenue raisers (fuel taxes, cap and trade). For each policy, we draw upon quasi-experimental or experimental evaluations of causal effects and translate those estimates into an MVPF. We apply a consistent translation of these behavioral responses into measures of their associated externalities and valuations of those externalities. We also provide a new method for incorporating learning-by-doing spillovers. The analysis yields three main results: First, subsidies for investments that directly displace the dirty production of electricity, such as production tax credits for wind power and subsidies for residential solar panels, have higher MVPFs (generally exceeding 2) than all other subsidies in our sample (with MVPFs generally around 1). Second, nudges to reduce energy consumption have large MVPFs, with values above 5, when targeted to regions of the US with a dirty electric grid. By contrast, policies targeting areas with cleaner grids such as California and the Northeast have substantially smaller MVPFs (often below 1). Third, fuel taxes and cap-and-trade policies are highly efficient means of raising revenue (with MVPFs below 0.7) due to the presence of large environmental externalities. We contrast these conclusions with those derived from more traditional cost-per-ton metrics used in previous literature. |
| JEL: | H0 Q5 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32728 |
| By: | Jochen Güntner; Magnus Reif; Maik Wolters; Maik H. Wolters |
| Abstract: | We use a structural VAR model to study the German natural gas market and investigate the impact of the 2022 Russian supply stop on the German economy. Combining conventional and narrative sign restrictions, we find that gas supply and demand shocks have large and persistent price effects, while output effects tend to be moderate. The 2022 natural gas price spike was driven by adverse supply shocks and positive storage demand shocks, as Germany filled its inventories before the winter. Counterfactual simulations of an embargo on natural gas imports from Russia indicate similar positive price and negative output effects compared to what we observe in the data. |
| Keywords: | energy crisis, German natural gas market, narrative sign restrictions, natural gas price, structural scenario analysis, vector-autoregression |
| JEL: | E32 F51 Q41 Q43 Q48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11191 |
| By: | Ioannis Tikoudis; Andrea Papu Carrone; Rose Mba Mebiame; Nicolina Lamhauge; Katherine Hassett; Olof Bystrom |
| Abstract: | This paper offers new insights on household choices related to transport, based on data from the third OECD Survey on Environmental Policies and Individual Behaviour Change (EPIC). The analysis explores the role of key factors determining the choice of fuel type in vehicles and the choice of transport mode in trips. The study uses choice experiment data to estimate the importance of key drivers of electric vehicle purchase decisions and to project future adoption rates of electric vehicles. Results show that income, location and environmental awareness play important roles in the choice of whether to own a vehicle, and its fuel type. Convenient access to charging, such as at home or workplace, can significantly increase the likelihood of choosing an electric vehicle. |
| Keywords: | car ownership, electric vehicle adoption, EV subsidies, fuel type choice, household behaviour, mode choice, range anxiety, recharging infrastructure |
| JEL: | C25 D12 D91 Q54 R40 |
| Date: | 2024–07–31 |
| URL: | https://d.repec.org/n?u=RePEc:oec:envaaa:246-en |