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on Energy Economics |
| By: | Bonga-Bonga, Lumengo; Nzimande, Ntokozo; Osuma, Godswill Osagie |
| Abstract: | This paper examines the intermediary role of carbon dioxide emissions and GDP per capita in the relationship between natural resource rents and renewable energy, with a specific focus on distinguishing between renewable energy consumption and production. Specifically, the paper aims to identify the threshold levels of carbon dioxide emissions and GDP per capita at which the negative relationship between natural resource or petroleum rents and renewable energy adoption may shift from negative to positive. Utilising the panel autoregressive distributed lag (ARDL) methodology, particularly the Pooled Mean Group (PMG) estimator, the paper demonstrates that natural resource and petroleum rents can promote both the consumption and production of renewable energy once GDP per capita surpasses a specific threshold, which varies between renewable energy consumption and production. Furthermore, the study finds that an increase in natural resource rents leads to a reduction in renewable energy consumption and production when CO2 emissions exceed a certain threshold. These findings are particularly relevant for European countries, which are at the forefront of international climate agreements, such as the Paris Agreement, and align with the objectives of Sustainable Development Goal 13 (SDG 13) on climate action. |
| Keywords: | renewable energy consumption and production, petroleum rent, natural resource rent, ARDL cointegration. |
| JEL: | C13 Q20 Q40 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121920 |
| By: | Di Foggia, Giacomo; Beccarello, Massimo |
| Abstract: | The drive toward decarbonization has spurred the growth of renewable energy sources, reshaping energy production and consumption patterns. As the energy landscape evolves, so must the market design supporting it to steer the integration of renewable energy. Addressing the challenges of promoting distributed renewable energy is paramount for developing a cleaner energy system and meeting decarbonization targets. This study presents a modern market design that efficiently integrates renewable energy sources, long-term contracts, and flexibility technologies into a single evolved market framework. The approach described herein provides proper price signals for diverse assets and decouples renewable energy from fossil fuels, ensuring economic viability and efficient integration. Taking into consideration key barriers and drivers, the findings provide insights for perfecting energy markets, meeting decarbonization targets, and guiding policymaking to boost cleaner energy systems. |
| Keywords: | market design; RES; Environmental economics; energy markets; energy price; |
| JEL: | H40 L88 Q48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121783 |
| By: | Cristina Jude; Grégory Levieuge |
| Abstract: | At the height of the COVID-19 crisis, many countries have reduced their countercyclical capital buffer (CCyB) and cut key policy rates. We exploit this quasi-natural experiment to gauge the combined effects of these two policies on bank lending rates (BLRs). First, we theoretically show that the joint action of CCyB release and monetary policy easing lowers BLRs by more than the sum of their individual effects. We then empirically confirm this synergy by a difference-in-difference analysis. Notably, for a one percentage point release of the CCyB, corporate BLRs decreased by around 11 basis points more compared to countries without CCyB relief. |
| Keywords: | Countercyclical Capital Buffer, Monetary Policy, Policy Complementarity, Lending Rates, Covid-19 |
| JEL: | G21 G28 E52 E44 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:961 |
| By: | Camille Macaire; Fabio Grieco; Ulrich Volz; Alain Naef |
| Abstract: | Keeping global warming under 1.5°C requires a complete phase-out of coal for electricity generation by 2040 according to the International Energy Agency’s Net Zero Emissions by 2050 (NZE) scenario. In this paper, we use unit-level data from the Global Coal Plant Tracker database to build a phase-out priority score and identify the coal-fired power plants that would need to be decommissioned now to comply with this pathway. We assume the other coal power plants continue to operate to the end of their lifetime. We show that 70% of the capacity of the operating coal fleet should be shut down now, which corresponds to stranded assets worth $842 billion globally. Replacing the coal capacities by equivalent low-carbon capacities would imply a much larger one-off cost of $4.5 trillion worldwide. This upfront investment would also imply large debt financing costs, estimated at $3.1 trillion globally, which would drive up the total cost to $8.4 trillion. But coal plants have much higher operational costs than low-carbon ones, in part because they need fuel to operate, and the cost of CO2 emissions need to be priced. We show that cumulated net operational gains linked to replacing coal plants with low-carbon alternative to comply with the 1.5°C would amount to $3.8 trillion worldwide, thus offsetting close to half of the total costs. By lowering financing costs and increasing carbon pricing in line with the International Energy Agency’s NZE scenario, the total equation could become positive, that is, total savings from the transition to clean energy would be higher than the total costs. |
| Keywords: | Coal Phase-out, Transition Pathways, De-carbonization; Early Retirement Strategy; Just Transition |
| JEL: | Q58 Q48 Q50 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:960 |
| By: | Rolando Fuentes; Amro Elshurafa (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The objective of this study is to map the innovation network in the electricity sector and to identify its pivotal actors to inform policymaking, particularly in Saudi Arabia. This study, which is part of a larger series, aims to identify emerging technologies, anticipate changes and provide crucial insights into innovation. |
| Keywords: | Business models, Digitalization, Enregy transitions, Investments |
| Date: | 2024–03–28 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp08 |
| By: | Therese E. Zogo (University of Yaoundé II, Cameroun); Christophe M. Mbassi (University of Yaoundé II, Cameroun); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | This paper assesses the effects of coups on access to electricity in Sub-Saharan Africa (SSA). The study covers a sample of 40 sub-Saharan African countries over the period 1980-2017. The econometric approach employed is the generalized method of moments (GMM). While the extant literature has established that political instability can have both positive and negative effects on access to basic public goods and services, the present study finds that coups significantly reduce access to electricity in SSA. This effect is the same regardless of the type of coup, notably: successful, failed, military or civilian coups. Thus, coups are not conducive for the establishment of real democratic transitions in the region which inter alia, are necessary to promote development outcomes such as access to electricity. |
| Keywords: | Coups d’état; Access to electricity |
| JEL: | D74 H41 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:agd:wpaper:24/019 |
| By: | Bal\'azs Mark\'o |
| Abstract: | This paper argues that military buildups lead to a significant rise in greenhouse gas emissions and can disrupt the green transition. Identifying military spending shocks, I use local projections to show that a percentage point rise in the military spending share leads to a 1-1.5% rise in total emissions, as well as a 1% rise in emission intensity. Using a dynamic production network model calibrated for the US, I find that a permanent shock of the same size would increase total emissions by between 0.36% and 1.81%, and emission intensity by between 0.22% and 1.5%. The model indicates that fossil fuel and energy-intensive firms experience a considerable expansion in response to such a shock, which could create political obstacles for the green transition. Similarly, investment in renewables and green R&D could be crowded out by defence spending, further hindering the energy transition. Policymakers can use carbon prices or green subsidies to counteract these effects, the latter likely being more efficient due to political and social constraints. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.16419 |
| By: | Hirose, Kosuke; Matsumura, Toshihiro |
| Abstract: | This study theoretically investigates energy-saving investment incentives in duopolies. First, we investigate a binary choice model in which each firm chooses whether to make an energy-saving investment and then they face Cournot competition. We focus on the incentive to become the leading firm by the investment, when the rival does not engage in this project. We find the private incentive to be insufficient for welfare (thereby requiring promotion through policies), if Pigouvian tax is imposed. However, this incentive can be excessive when the emission tax rate is lower than the Pigouvian level. Next, we investigate a model in which firms can choose energy-saving investment levels continuously. We find that the equilibrium investment can be (is not) excessive for welfare when the emission tax rate is lower than (equal to) the Pigouvian. These results suggest a risk of policy formation combining a low emission tax and subsidies for promoting energy-saving investments. |
| Keywords: | emission tax; investment subsidy; policy combination; energy-conservation; production substitution |
| JEL: | L13 Q38 Q58 |
| Date: | 2024–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121836 |
| By: | Marco Due\~nas; Antoine Mandel |
| Abstract: | This paper explores the relationship between economic growth and CO$_2$ emissions across European regions from 1990 to 2022, specifically concerning the dynamics of emissions growth rates through different phases of the European Union Emissions Trading System (EU ETS). We find that emissions dynamics exhibit significant volatility influenced by changing policy frameworks. Furthermore, the distribution of emissions growth rates is asymmetric and displays fat tails, suggesting the potential for extreme emissions events. We identify marked disparities across regions: less developed regions experience higher emissions growth rates and greater volatility compared to many developed areas, which show a trend of declining emissions and reduced volatility. Our findings highlight the sensitivity of emissions to policy changes and emphasise the need for clear and effective governance in emissions trading schemes. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2408.15438 |
| By: | Nicola Borri (LUISS University); Yukun Liu (University of Rochester); Aleh Tsyvinski (Yale University); Xi Wu (University of California - Berkeley) |
| Abstract: | The European Union Emission Trading System is a prominent market-based mechanism to reduce emissions. While the theory is well- understood, we are the first to study the whole cap-and-trade mechanism as a financial market. Analyzing the universe of transactions in 2005-2020 (more than one million records of granular transaction data), we show that this market features significant inefficiencies undermining its goals. First, about 40% of firms never trade in a given ear. Second, many firms only trade during surrendering months, when compliance is immediate and prices are predictably high. Third, a number of operators engage in speculative trading, exploiting private information. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2403 |
| By: | Cristiano Salvagnin |
| Abstract: | This study aims to map the scientific production on the European Union Emissions Trading System (EU ETS) market from 2004 to 2024. By analyzing research articles collected from the Scopus database, this bibliometric review provides a comprehensive overview of the academic landscape surrounding the EU ETS. Utilizing the Bibliometrix package in R, we conducted an in-depth analysis of publication trends, key research themes, influential authors, and prominent journals in the field. Our findings reveal significant growth in scholarly interest, with notable peaks corresponding to major policy updates and economic events. The analysis highlights the most cited works and collaborative networks, offering insights into the evolution of research topics over the past two decades. This review serves as a valuable resource for researchers and policymakers, providing a detailed understanding of the academic contributions to the EU ETS market and identifying emerging trends and gaps in the literature. Through this bibliometric approach, we offer a nuanced perspective on the development and impact of the EU ETS in the context of global carbon markets and climate policy. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.01739 |
| By: | Alexis Spire (IRIS - Institut de Recherche Interdisciplinaire sur les enjeux Sociaux - sciences sociales, politique, santé - EHESS - École des hautes études en sciences sociales - INSERM - Institut National de la Santé et de la Recherche Médicale - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Keywords: | Taxation, Civic actors, Revolt |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04671574 |
| By: | Guillermo Guzmán Prudencio (SDSN Bolivia); Lykke E. Andersen (SDSN Bolivia) |
| Abstract: | This research analyzes the most attractive municipalities in Bolivia, that is, those capable of attracting (and retaining) more population, using new methodological approaches, specifically, using large databases of electricity consumption (Big Data) and powerful satellite images. The central analysis identifies the most attractive municipalities in the country and describes them using certain of their essential characteristics (their population, their geographical position, their political status, and their transport infrastructure). The main hypothesis of the research maintains that the greater concurrence of these variables (essential characteristics) is positively related to the degree of attractiveness of the municipalities. |
| Keywords: | Bolivia, Migration, Attractive Municipalities, Big Data |
| JEL: | O15 O18 |
| Date: | 2023–10 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0623 |
| By: | Yusuf, Tayo |
| Abstract: | The study explores the circumvention of sanctions by Russia using the “Dark Fleet and Gray Fleet”. The research was premised on the rationale that the sanctions imposed by the USA and its allies has only not had its intended effects, studies shows that the Russian economy has weathered the storm and is on an upward trajectory. The study showed how the Russian state along with its collaborators have been able to enlist deficient tankers with obscured ownership to transport oil and fuel the ongoing war with Ukraine . The paper recommends ways by which the United States and its Western allies can collaborate to ensure sanctions are far reaching and fit for purpose. |
| Keywords: | Sanctions, Evasion, Dark Fleet, Gray Fleet, Russia, USA. Ukraine |
| JEL: | K00 Z00 |
| Date: | 2024–08–30 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121829 |
| By: | Domenico Delli Gatti; Tommaso Ferraresi; Filippo Gusella; Lilit Popoyan; Giorgio Ricchiuti; Andrea Roventini |
| Abstract: | We extend the multi-country, multi-sector agent-based model in Dosi et al. (2019, 2021) by incorporating an exchange rate market where heterogeneous chartist and fundamentalist financial traders exchange foreign currencies. This introduces complex interactions between the real and financial side of the economies that reverberate on the dynamics of the exchange rate, which acts both as a transmission channel of endogenous fluctuation and as a source of shocks. Simulation results show that model is able to account for a rich ensemble of stylized facts (e.g., fat tails, volatility clustering, fluctuations and contagion among others) concerning the exchange market and its interactions with the real economy dynamics at different level of aggregation. Moreover, our findings reveal that speculative behavior in the exchange rate market substantially increases financial turbulence and contributes to real economic fluctuations. On the policy side, we highlight the power and limitations of central bank interventions in the exchange rate market. |
| Keywords: | agent-based model, exchange rate dynamics, financial crises, endogenous business cycles, heterogeneous traders, central bank interventions |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/24 |
| By: | Zlata Sergeeva; Colin Ward (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | In 2019, a new product – carbon-neutral LNG – was born. By 2021, the market for this product had grown rapidly. However, in 2022, the number of announcements about the volumes delivered to customers significantly decreased. To a large extent, this decrease was linked to credibility issues because all supplied cargoes used carbon offsets of various qualities to address emissions. Due to the lack of transparency and proper reporting, as well as global standards for the industry, the practice of trading carbon-neutral LNG has received substantial criticism from the media and stakeholders. However, considering the recent energy crisis and growing need for natural gas in certain regions, decarbonizing LNG is crucial for ensuring energy security in the coming decades. |
| Keywords: | Carbon, carbon capture and storage, Carbon Capture and Storage (CCS), Carbon Neutrality |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp22 |
| By: | Jan Behringer (Macroeconomic Policy Institute (IMK)); Lukas Endres (Macroeconomic Policy Institute (IMK)); Maike Korsinnek (Macroeconomic Policy Institute (IMK)) |
| Abstract: | Zum Jahreswechsel 2023/2024 hat die Bundesregierung den nationalen CO2-Preis von 30 Euro auf 45 Euro pro Tonne angehoben. Aktuelle Prognosen gehen davon aus, dass der CO2-Preis 2027 bei 200 Euro liegen wird. Anhand einer Online-Umfrage wird in diesem Policy Brief gezeigt, dass die Akzeptanz der CO2-Bepreisung in der Bevölkerung in Deutschland selbst bei dem aktuellen Preis gering ist. Insbesondere in den neuen Bundesländern und bei Menschen mit geringeren Einkommen und größeren finanziellen Sorgen fällt die Zustimmung schwächer aus. Zudem fühlt sich die große Mehrheit der Bevölkerung nicht ausreichend über den CO2-Preis informiert. Dies bestätigt sich auch darin, dass viele Menschen die finanziellen Auswirkungen der CO2-Bepreisung für ihren Haushalt nicht abschätzen können. So werden die Kosten durch den aktuellen CO2-Preis für den eigenen Haushalt im Durchschnitt überschätzt, wohingegen die zukünftigen Kosten bei steigenden CO2-Preisen unterschätzt werden. Die Ergebnisse unterstreichen das Potenzial, die Akzeptanz der CO2-Bepreisung durch eine Korrektur dieser Fehlwahrnehmung zu erhöhen. Um den Rückhalt für diese Maßnahme in der Bevölkerung auch bei steigenden Preisen zu sichern, sollte zudem zeitnah ein Kompensationsmechanismus umgesetzt werden, der insbesondere untere und mittlere Einkommensgruppen entlastet. |
| Keywords: | CO2-Preis, Akzeptanz, Kosten, Kompensation |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:imk:pbrief:175-2024 |
| By: | Niels Joachim Gormsen; Kilian Huber; Sangmin Simon Oh |
| Abstract: | Firms' perceived cost of green capital has decreased since the rise of sustainable investing. Green and brown firms perceived their cost of capital to be the same before 2016, but after the post-2016 surge in sustainable investing, green firms perceived their cost of capital to be on average 1 percentage point lower. This difference has widened as sustainable investing has intensified. Within some of the largest energy and utility firms, managers have started applying a lower cost of capital to greener divisions. The changes in the perceived cost of green capital incentivize cross-firm and within-firm reallocation of capital toward greener investments. |
| JEL: | D24 E22 G10 G12 G31 G32 G41 Q50 Q51 Q54 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32933 |
| By: | Alice Di Bella; Francesco Pietro Colelli |
| Abstract: | This study explores compounding impacts of climate change on power system's load and generation, emphasising the need to integrate adaptation and mitigation strategies into investment planning. We combine existing and novel empirical evidence to model impacts on: i) air-conditioning demand; ii) thermal power outages; iii) hydro-power generation shortages. Using a power dispatch and capacity expansion model, we analyse the Italian power system's response to these climate impacts in 2030, integrating mitigation targets and optimising for cost-efficiency at an hourly resolution. We outline different meteorological scenarios to explore the impacts of both average climatic changes and the intensification of extreme weather events. We find that addressing extreme weather in power system planning will require an extra 5-8 GW of photovoltaic (PV) capacity, on top of the 50 GW of the additional solar PV capacity required by the mitigation target alone. Despite the higher initial investments, we find that the adoption of renewable technologies, especially PV, alleviates the power system's vulnerability to climate change and extreme weather events. Furthermore, enhancing short-term storage with lithium-ion batteries is crucial to counterbalance the reduced availability of dispatchable hydro generation. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.03593 |
| By: | Gert Bijnen (National Bank of Belgium, Research Department, and KU Leuven, Department of Economics.); Carine Swartenbroekx (National Bank of Belgium, Economics and Research Department) |
| Abstract: | This paper provides a first estimate of the potential greenhouse gas mitigation from the intra-sector reallocation of economic activity by the European manufacturing industry away from carbon-inefficient – or "brown zombie" – firms to more carbon-efficient firms. Using techniques from the literature on productivity, we find a potential reduction of 38% based on a limited reallocation of production, without the need for new technologies. Therefore, when designing emission reduction plans, policymakers should not focus solely on improvements and innovation within existing firms but must also encourage the reallocation of economic activity from "brown zombies" to more carbon-efficient enterprises. |
| Keywords: | climate policy, carbon emission reduction, carbon-intensive industries, reallocation, brown zombies |
| JEL: | D22 L23 L52 L60 O14 Q58 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbb:reswpp:202409-454 |
| By: | Puneet Kamboj; Mohamad Hejazi; Yang Qiu; Page Kyle; Gokul Iyer (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Decarbonizing the transport sector will likely play a crucial role for Saudi Arabia in fulfilling its target of reaching net-zero greenhouse gas (GHG) emissions by 2060. While clear and immediate low-carbon or zero-carbon alternatives exist in some sectors, the transport sector faces challenges. For instance, there are promising solutions for passenger cars, but solutions for long-distance transport are still being developed or are in the early adoption phase. Understanding these challenges requires a comprehensive study of Saudi Arabia’s transport sector and the long-term impact of various policies on the industry. |
| Keywords: | Air conditioning, Applied general model, Article 6, Blockchain |
| Date: | 2024–01–22 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp01 |
| By: | Onur Polat (Department of Public Finance, Bilecik Seyh Edebali University, Bilecik, Turkiye); Juncal Cunado (University of Navarra, School of Economics, Edificio Amigos, E-31080, Pamplona, Spain); Oguzhan Cepni (Ostim Technical University, Ankara, Turkiye; University of Edinburgh Business School, Centre for Business, Climate Change, and Sustainability; Department of Economics, Copenhagen Business School, Denmark); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa) |
| Abstract: | This paper investigates the impact of oil supply, demand, and risk shocks on U.S. state-level stock and bond returns, utilizing daily data from February 1994 to March 2024. It examines the individual effects of oil price shocks on each state’s stock and bond returns and explores how fluctuations in oil prices influence the interdependence between state-level stock and bond markets. The findings reveal that oil demand shocks have a significant positive impact, while oil supply shocks have a significant negative impact on state-level stock returns. Although state-level bond returns also react to these supply and demand shocks, their response is statistically less significant than that of stock returns, indicating that cross-asset diversification is possible during periods of oil supply and demand shocks. However, both stock and bond returns are significantly and negatively affected by oil risk shocks, which implies limited opportunities for cross-asset diversification when oil price fluctuations are driven by risk factors. Additionally, the interdependence between U.S. equity and bond markets is more significantly influenced by oil risk shocks than by supply or demand shocks, suggesting an increase in the interconnectedness of stock and bond returns following an oil risk shock. Further analysis, using a reverse-MIDAS model to relate high-frequency connectedness measures to monthly oil price shocks, indicates that oil supply shocks positively and significantly impact stock market connectedness, while oil inventory demand shocks negatively affect bond market connectedness. Implications of our findings are discussed. |
| Keywords: | Oil price shocks, state-level stock market returns, state-level municipal bond returns, connectedness. |
| JEL: | C22 C32 G10 Q41 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:pre:wpaper:202438 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Developing clean hydrogen industries and markets are strategically crucial for Saudi Arabia and China to achieve their net-zero climate goals. Saudi Arabia has made significant progress in hydrogen development from extraction to commercialization. Different options for galvanizing clean hydrogen production are being explored, with the goal of reaching four million tons of clean hydrogen annually by 2030, most of which will be exported to major energy consumers in East Asia and Europe. China is the world’s largest producer and consumer of hydrogen. The construction of an integrated hydrogen industry by 2035 will promote the use of hydrogen across the transportation, energy storage, and industrial sectors. |
| Keywords: | Belt and Road, Capital expenditure, Circular Carbon Economy (CCE), CO2 emissions |
| Date: | 2024–02–25 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2024-wb01 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The signing and subsequent ratification of the 2015 Paris Agreement, followed by the consequent net-zero emission target pledges of individual countries, have galvanized the global focus on decarbonization activities. The transport sector contributes almost a quarter of all energy-related greenhouse gas (GHG) emissions globally, thus ensuring that decarbonizing transportation is an increasingly critical factor leading to the achievement of overall emissions reduction. |
| Keywords: | Carbon, carbon capture and storage, Carbon Capture and Storage (CCS), Carbon Neutrality |
| Date: | 2024–01–22 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2023-wb05 |
| By: | Hossa Almutairi; Fateh Belaïd; Abdulelah Darandary (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | There is a consensus in the literature regarding the significant role of behavioral change in reducing the level of residential energy consumption. However, there is an ongoing debate concerning the most effective mechanisms and instruments with which to promote energy-efficient actions among individuals. In the Saudi Arabian context, leveraging behavioral economic concepts can play a crucial role in assessing how individual behaviors and lifestyles shape residential energy usage and influence energy consumption patterns. This study proposes a framework for designing behavioral interventions, including social norms, high-alert messages, and energy-saving tips, to reduce residential energy consumption and greenhouse gas emission levels in Saudi Arabia. |
| Keywords: | Agent Based modeling, Analytics, Applied Research, Autometrics |
| Date: | 2024–06–24 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp10 |
| By: | Mari Luomi; Fatih Yılmaz; Thamir Al Shehri (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The Circular Carbon Economy (CCE) Index provides a comparative overview of where countries stand on the road to net-zero and how well equipped they are to get there. The CCE Index compiles quantitative data points from 38 robust sources into a composite indicator covering countries representing approximately 90% of the global economy and CO2 emissions. On each of the indicators, each country receives a score of 0-100, which are combined to form various aggregate scores: for the total CCE Index, CCE Performance, CCE Enablers, and various enabling areas. In addition to these, five more indicators are applied to major oil and gas producing countries for an add-on score called the Oil Producers Lens. This paper presents and analyses the results of the 2023 CCE Index. |
| Keywords: | Circular Carbon Economy (CCE), Climate policy, CO2 emissions, GHGs |
| Date: | 2024–03–31 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp02 |
| By: | Yang, Linge |
| Abstract: | This paper investigates the Chinese secondary industry, revealing two significant findings through the integration of neoclassical economic theory and contemporary quasi-experimental methods. Firstly, it reveals that stringent environmental regulations can result in substantial economic losses, underscoring the trade-off between environmental regulation and economic prosperity. Secondly, it identifies an inverted U-shaped relationship between environmental regulation and economic output, indicating the existence of an optimal regulation level where environmental quality and economic growth are balanced. In light of the ongoing emphasis on sustainability, this paper suggests that it is possible to formulate regulatory policies that align economic and environmental goals, especially in developing countries under global economic pressures. |
| Keywords: | Environmental Regulation, Sustainability, Command-and-control, Porter’s hypothesis |
| JEL: | Q53 Q56 Q58 |
| Date: | 2024–09–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122048 |
| By: | Leimbach, Marian; Hübler, Michael; Mahlkow, Hendrik; Montrone, Lorenzo; Bukin, Eduard; Felbermayr, Gabriel; Kalkuhl, Matthias; Koch, Johannes; Marcolino, Marcos; Pothen, Frank; Steckel, Jan Christoph |
| Abstract: | The decarbonization of India’s economy will have different effects across income groups. As India is in the middle of the transformation process from an agriculture-based economy towards an industry- and service-based economy, called economic structural change, the extent of income distribution across households strongly depends also on the speed of economic transformation. While a number of recent studies have analyzed the distributional effects of carbon pricing, the specific role of structural change across sectors has not been in the focus of the related literature. Our study contrasts distributional effects from climate policy with distributional effects from structural change in India and asks how far carbon pricing supports or hinders structural change and development. We develop and apply a comprehensive model framework that combines economic growth and international trade dynamics related to structural change with detailed household income and expenditure data for India. Our study shows that changes in income and inequality due to carbon pricing vary with changes in the sectoral structure of an economy. Our results indicate that carbon pricing tends to delay economic structural change by retarding the reallocation of economic activities from the agricultural sector to the manufacturing sector. Furthermore, the results emphasize that the increase in inequality due to structural change is substantially stronger than due to carbon pricing. Consequently, socially sensitive policies supporting the process of structural transformation appear to be more important for poor households than lowering climate policy ambitions. |
| Keywords: | Structural Change, Climate Policy |
| JEL: | Q54 O11 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:302045 |
| By: | Guillermo Guzmán Prudencio (SDSN Bolivia); Lykke E. Andersen (SDSN Bolivia); Ariel Zeballos (SDSN Bolivia); Diego Vladimir Romecín Duarte (SDSN Bolivia) |
| Abstract: | The study analyses unfinished migration in Bolivia, understood as the phenomenon by which some families maintain double residence between the countryside and the city. From the analysis of household electricity consumption (as a proxy variable of their socioeconomic level), different livelihood strategies are evaluated, as well as their implications for poverty. The use of big data (more than 100 million observations) and the analytical methodology are certainly novel and propose alternative possibilities for research in applied economics. |
| Keywords: | Bolivia, migration, poverty, electrical consumption |
| JEL: | O15 O18 |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0323 |
| By: | Yang Qiu; Gokul Iyer; Jay Fuhrman; Mohamad Hejazi; Puneet Kamboj; Page Kyle (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The Kingdom of Saudi Arabia (KSA) has pledged to achieve net-zero greenhouse gas (GHG) emissions by 2060. Direct air carbon capture and storage (DACCS) is critical for the country to meet its net-zero target given its reliance on fossil fuels and limited options for carbon dioxide (CO2) removal (CDR). |
| Keywords: | Air conditioning, Applied general model, Article 6, Blockchain |
| Date: | 2024–07–08 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp23 |
| By: | Larch, Mario; Wanner, Joschka |
| Abstract: | International cooperation is at the core of multilateral climate policy. How is its effectiveness harmed by individual countries not participating in the global mitigation effort? We use a multi-sector structural trade model with carbon emissions from production and a constant elasticity of fossil fuel supply function to simulate the consequences of unilateral non-participation in the Paris Agreement. Taking into account both direct and leakage effects, we find that non-participation of the US would eliminate more than a third of the world emissions reduction (31.8% direct effect and 6.4% leakage effect), while a potential non-participation of China lowers the world emission reduction by 24.1% (11.9% direct effect and 12.2% leakage effect). The substantial leakage is primarily driven by technique effects induced by falling international fossil fuel prices. In terms of welfare, the overwhelming majority of countries gain from the implementation of the Paris Agreement and most countries have only very little to gain from unilaterally deciding not to participate. |
| Keywords: | Climate change, International trade, Carbon leakage, Fossil fuel supply |
| JEL: | F14 F18 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:302105 |
| By: | Banerjee, Rhythm |
| Abstract: | This paper investigates the impact of ESG divestments on the share prices of listed equities. The study employs a two-fold approach: (i) an event study analyzing divestment announcements and (ii) a panel regression covering a longer divestment period, considering the actual purchase/sale of shares. We use a diversified historical portfolio of the Norges Bank Investment Management (NBIM), the world’s largest Sovereign Wealth Fund. Incorporating sectoral and dynamic effects, the study captures the short- to medium-term effects of exclusion and non-exclusion on stock prices. We find three significant results. First, the exclusion of firms in the oil and gas industry substantially negatively impacts their share prices. Second, if a company belongs to the same sector as an excluded firm, it experiences a negative effect on stock prices from an exclusion shock. Importantly, exclusion announcements lower prices more than actual divestments. Lastly, divestitures by NBIM have the opposite effect on firms' share prices in the Electric Utilities and Independent Power Producers’ (EUIPP) sector, increasing their share price over a year. However, this effect is narrow and limited to this specific sector. |
| Keywords: | Institutional investors; Sustainable finance; Divestments; Portfolio balance |
| JEL: | G14 G15 G23 |
| Date: | 2024–03–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121922 |
| By: | Ahmed Al-Balawi; Nora Nezamuddin; Frank Felder; Abdelrahman Muhsen; Amro Elshurafa (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Floating offshore wind turbines (FOWTs) have recently gained traction and are being installed in several regions of Europe and Asia. These turbines use the same technology as typical offshore wind turbines but are not directly anchored to the seabed. Instead, they are tethered with mooring lines and can float in the water within a predefined range of movement. This feature could enable development opportunities in areas with a water depth greater than 60 meters (i.e., the limit of current seabed-anchored offshore wind turbines). One of the main obstacles in developing offshore wind turbines in the Red Sea is the water depth, which is greater than 60 meters. Hence, FOWTs are a viable option. |
| Keywords: | Battery storage, Benefits of electricity trade, Business models, Climate change |
| Date: | 2024–05–05 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp11 |
| By: | Rami Shabaneh; Wolfgang Heidug (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | As part of a diverse energy portfolio, hydrogen can support global efforts toward transitioning to a more sustainable energy system. This would align with climate goals, such as those outlined in the Paris Agreement. For hydrogen to fulfill this potential, its production method needs a paradigm shift. The prevalent method used today relies on unabated natural gas and other fossil fuels, leading to significant greenhouse gas emissions. Thus, clean production processes need to be adopted that either eliminate, capture or significantly reduce GHG emissions to meet specific sustainability benchmarks. |
| Keywords: | Carbon, carbon capture and storage, Carbon Capture and Storage (CCS), Carbon Neutrality |
| Date: | 2023–12–14 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp34 |
| By: | Robson, Sally (Resources for the Future); Russell, Ethan (Resources for the Future); Varela Varela, Ana; Shawhan, Daniel (Resources for the Future) |
| Abstract: | Environmental policymakers in the United States are giving increasing attention to reducing the burden on Americans who face both environmental and economic disadvantages. This study considers an important part of the burden: the concentration of airborne fine particulate matter (PM2.5) due to emissions from the nation’s power sector. Using a highly detailed simulation model of the US power sector paired with a model of PM2.5 formation and dispersion, the study projects some of the environmental and economic effects of nationwide implementation of different policies to reduce power plants’ contributions to PM2.5 in environmentally overburdened, disadvantaged communities (EO DACs). Effects from reduced ground-level ozone also are addressed. Results are compared with a policy that is not geographically targeted—a national price on power sector carbon dioxide (CO2) emissions. In addition to the effects on EO DACs, we project the effects for all Americans, Black Americans, Hispanic Americans, Americans in the lowest income quintile, and Americans in highly environmentally burdened (not necessarily disadvantaged) areas. The national power sector CO2 emissions price is the most cost-effective policy for reducing premature mortality from PM2.5 exposure in EO DACs. The other policies, which are geographically targeted toward reducing burdens in EO DACs, have the unintended consequence of increasing PM2.5 exposure in some of those areas. |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-15 |
| By: | Xun Xu; Tianduo Peng; Zhandong Xu; Mi Gan; Dandan Li; Xiaobo Liu (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The containment of road freight transport emission growth is a significant challenge to climate change mitigation, as the road freight sector has been one of the fastest growing sources of greenhouse gas (GHG) emissions and is considered particularly difficult to decarbonize (ITF 2021). Globally, this sector accounts for approximately one-fifth of the world’s oil demand and more than one-third of transport-related CO2 emissions (IEA 2017). The International Transport Forum (ITF) estimates that world freight transport demand (across all modes) will grow more than twofold in the next thirty years (ITF 2021), presenting a significant challenge to the UN’s climate change mitigation agenda. This challenge is exacerbated as low- and middle-income developing countries, often relying on road freight as a key pillar of domestic economic growth, are expected to account for most future surface freight activity growth (ITF 2021; SLOCAT 2021a); however, these countries are ill prepared to confront the mounting climate change mitigation pressure (Timperley 2021; UN Environment Program 2022; Wolf 2022). |
| Keywords: | Energy efficiency, Freight transport activity, Frieght Big data, Uberization of freight |
| Date: | 2024–01–04 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2023-dp27 |
| By: | Marie Petitet; Frank Felder; Amro Elshurafa (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | For important domestic public policy reasons, many oil- and natural-gas-producing countries allocate fuels to their electricity sector at administratively set prices that are below fuel opportunity costs. This article shows that dispatching power units based on fuel opportunity costs can significantly increase efficiency, while, for political reasons, end users’ electricity prices can continue to be defined based on administratively set fuel prices. In addition, opportunity cost dispatch can bring about environmental benefits when it results in switching the priority levels of oil and gas units in the merit order. This work also resolves the electricity trading dilemma since countries do not want to export electricity based on domestic prices. |
| Date: | 2024–03–17 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp03 |
| By: | Felipe Avilés-Lucero; Gabriel Peraita; Camilo Valladares |
| Abstract: | CO2 mitigation policies are one of the main tools to reduce CO2 emissions from industries. Unfortunately, the link between GDP growth and emissions trends has not been directly addressed. In this document, we propose a method for decomposing the growth of CO2 emissions based on information from national accounts, which breaks down the rate of variation of emissions into three components: scale, composition, and mitigation. This method directly measures the effectiveness of mitigation efforts at the national level. Using Chilean data for the last two decades, we show that, without mitigation attempts, total CO2 emissions would have increased nearly 50 percentage points more than the actual number. |
| Date: | 2023–08 |
| URL: | https://d.repec.org/n?u=RePEc:chb:bcchee:140 |
| By: | Vladimir Smirnyagin (University of Virginia); Aleh Tsyvinski (Yale University); Xi Wu (University of California - Berkeley) |
| Abstract: | Analyzing the universe of federal environmental regulations in the U.S., we construct a measure of regulations—direct taxes on pollution. Analyzing the universe of firms’ investor disclosures, we construct a measure of material environmental concerns—indirect taxes on pollution. These two empirical measures are new to the environmental regulations literature. Thirdly, we document an important new fact that the cross-sectional distribution of pollution changes is lumpy. We build a dynamic heterogeneous firm model with non-convex adjustment costs that fits the cross-sectional pollution evidence. The model explains half of the pollution decline in U.S. manufacturing over the last two decades due to direct and indirect taxes. We show that the dynamics of direct taxes (environmental regulations) and indirect taxes (environmental concerns), non-convex adjustment costs, and idiosyncratic productivity shocks are key determinants of pollution dynamics in U.S. manufacturing |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2404 |
| By: | Puneet Kamboj; Mohamad Hejazi; Fateh Belaïd; Mohammad Aldubyan; Yang Qiu; Page Kyle; Gokul Iyer (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | In this paper, an economy-wide, net-zero pathway that enables Saudi Arabia to achieve net-zero greenhouse gas emissions by 2060 is investigated, with a specific focus on the critical role played by the building sector. An exploration is undertaken of the significance of energy efficiency measures, the circular carbon economy framework and the Saudi Energy Efficiency Center’s instrumental contributions in reducing energy demand and GHG emissions within the building sector. |
| Keywords: | Air conditioning, Applied general model, Article 6, Blockchain |
| Date: | 2024–03–25 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp07 |
| By: | Marie Petitet; Benjamin Ricaud; Frank Felder; Amro Elshurafa (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Cross-border electricity trading in the Middle East and North Africa (MENA) can provide cost and environmental benefits. However, for historical reasons, electricity trading has not reached a mature stage in this region. Based on a bespoke economic dispatch model for the 2030 horizon, this paper investigates the cost and emission implications of electricity trade in Gulf Cooperation Council (GCC) countries plus Egypt, Jordan, and Iraq. |
| Keywords: | Battery storage, Benefits of electricity trade, Business models, Climate change |
| Date: | 2024–06–11 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp15 |
| By: | Patricia Peñalosa; Lukas Kleine-Rueschkamp |
| Abstract: | This paper explores the geography of “green innovation hubs” and the relationship between green patents and local labour markets. The analysis considers the spatial distribution and evolution of patenting activity for green inventions and identifies green innovation hubs, i.e., regions demonstrating notable strength in green patenting. It also explores the relationship between the regional level of green patenting, economic activity, education, and local labour dynamics across OECD regions. Greater Copenhagen (a cross-border area including parts of Denmark and Southern Sweden) is used as an example to illustrate one region's green innovation ecosystem, assessing its progress, unique opportunities, and challenges. |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:oec:cfeaaa:2024/09-en |
| By: | Felbermayr, Gabriel; Peterson, Sonja; Wanner, Joschka |
| Abstract: | While international trade can offer gains from specialization and access to a wider range of products, it is also closely interlinked with global environmental problems, above all, anthropogenic climate change. This survey provides a structured overview of the economic literature on the interaction between environmental outcomes, trade, environmental policy and trade policy. In this endeavor, it covers approaches reaching from descriptive data analysis based on input‐output tables, over quantitative trade models and econometric studies to game‐theoretic analyses. Addressed issues are in particular the emission content of trade and emissions along value chains, the relocation of dirty firms and environmental impacts abroad, impacts of specific trade policies (such as trade agreements or tariffs) or environmental policies (such as border carbon adjustment), transportation emissions, as well as the role of firms. Across the different topics covered, the paper also tries to identify avenues for future research, with a particular focus on extending quantitative trade and environment models. |
| Keywords: | carbon border adjustment, carbon leakage, climate change, trade, trade policy |
| JEL: | F13 F18 Q54 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:302108 |
| By: | Kandhra, Diya; MacCurdy, Dwight; Lipman, Timothy PhD |
| Abstract: | To better understand inequities in EV charging costs, we compared charging costs at public EV DCFC stations to the cost for single-family housing (SFH) residents charging at home for three California electric utility service areas, the Sacramento Municipal Utility District (SMUD), San Diego Gas and Electric Company (SDG&E) and Pacific Gas and Electric Company (PG&E), and for three specific urban areas - Sacramento, San Diego, and San Jose. We used a combination of observed pricing data from PlugShare, a crowd-sourced database of public EV charging, and public DCFC pricing data from electric vehicle service provider (EVSP) websites, as well as electric utility tariff information from their respective websites. |
| Keywords: | Engineering |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt9dn2j441 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Building energy efficiency is a critical component of efforts to address climate change and achieve sustainable development and can potentially reduce greenhouse gas emissions, save money, lower energy bills, create new jobs, and improve occupants’ indoor comfort and quality of life. By stimulating and implementing energy-efficient building strategies, countries may make significant progress toward achieving their climate targets. This brief summarizes the discussions carried out during a workshop jointly hosted by King Abdullah Petroleum Studies and Research Center (KAPSARC) and Gulf University for Science and Technology (GUST). |
| Keywords: | Climate policy, Energy consumption, Energy efficiency |
| Date: | 2023–12–24 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2023-wb04 |
| By: | Andrea Éltető (Institute of World Economics, HUN-REN Centre for Economic and Regional Studies) |
| Abstract: | Based on official documents, the paper addresses in detail, why battery production in Hungary cannot be discussed as if it were in another European country. The costs and risks of Hungarian battery production are high because of its specific characteristics, and if current practices remain unchanged, the environmental, health and social damage it causes will directly outweigh the benefits for the population. Experience has shown that large companies will obtain environmental permits, no matter how unclear certain issues remain. Regulations have not been adjusted to this huge battery industry. And even in cases where rules are appropriate, the centrally-mandated authorities are not only lenient, but even break the rules themselves in the interests of the companies. New government regulations are helping the companies instead of local people or workers. There is also a weakening of transparency and inertia on the part of the authorities in many areas. Overall, the environment and nature protection aspects are not being taken into account in this area. |
| Keywords: | battery production, environmental protection, electric car, automotive industry |
| JEL: | O25 P28 Q25 Q58 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:iwe:workpr:276 |
| By: | Sid Ahmed Hamdani; Rami Shabaneh (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This paper investigates the role of the Middle East and Africa (MEA) in supplying liquefied natural gas (LNG) to Europe in the context of sustained Russian gas pipeline disruptions. |
| Keywords: | Energy Trade |
| Date: | 2024–05–23 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp12 |
| By: | Ibrahem Shatnawi; Jeyhun Mikayilov (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The adoption of more stringent fuel economy standards represents a pivotal pathway toward achieving net zero emissions in the transportation sector. By steadily increasing the fuel efficiency of vehicles, this approach drives a gradual but consistent decline in emissions. When coupled with the simultaneous integration of electric and alternative fuel vehicles into the market, the goal of net zero emissions becomes increasingly feasible. |
| Date: | 2024–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp21 |
| By: | Khalid Alhadhrami; Ahmed Al-Balawi; Shahid Hasan; Amro Elshurafa (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | With over seventy countries setting net-zero commitments by or around mid-century, low-carbon hydrogen (H2) is expected to play a pivotal role in the decarbonization of the global economy, especially sectors less dependent on electricity, which are often termed as hard-to-abate industries. |
| Date: | 2024–03–25 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp04 |
| By: | Gianluca Biggi; Martina Iori; Julia Mazzei; Andrea Mina |
| Abstract: | This paper investigates the contribution of Artificial Intelligence (AI) to environmental innovation. Leveraging a novel dataset of USPTO patent applications from 1980 to 2019, it explores the domain of Green Intelligence (GI), defined as the application of AI algorithms to green technologies. Our analyses reveal an expanding landscape where AI is indeed used as a general purpose technology to address the challenge of sustainability and acts as a catalyst for green innovation. We highlight transportation, energy, and control methods as key applications of GI innovation. We then examine the impact of inventions by using measures and econometric tests suitable to establish 1) how AI and green inventions differ from other technologies and 2) what specifically distinguishes GI technologies in terms of quality and value. Results show that AI and green technologies have a greater impact on follow-on inventions and display greater originality and generality. GI inventions stand out even further in these dimensions. However, when we examine the market response to these inventions, we find positive results only for AI, indicating a mismatch between the technological vis-Ã -vis market potential of green and GI technologies, arguably due to greater uncertainty in their risk-return profiles. |
| Keywords: | Artificial Intelligence, Environmental innovation, Green Intelligence (GI), Twin transition, Digitalization, Green technologies |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/23 |
| By: | Toyo A. M. Dossou (University of Abomey-Calavi in Benin); Dossou K. Pascal (Gbégamey-Cotonou, Benin); Emmanuelle N. Kambaye (Wenjiang District, Chengdu, China); Simplice A. Asongu (Yaoundé, Cameroon); Alastaire S. Alinsato (Gbégamey-Cotonou, Benin) |
| Abstract: | Although the impact of financial development on renewable energy consumption has been extensively examined in recent years, the study regarding the moderation of governance quality on the financial development on renewable energy consumption nexus is sparse. By filling the gap in the energy economics literature, this study investigates the moderating effect of governance quality on the relationship between financial development on renewable energy consumption for a panel of 33 African countries over the period 2000-2020. The fully modified ordinary least square (FMOLS) estimation techniques has been used to account for the cointegration and cross-sectional dependence, respectively. The results unveil that the impact of governance quality and financial development on renewable energy consumption is negative and statistically significant. Moreover, the results reveal that the FD-governance quality interactions are significant and negative. Governance quality thresholds at which the negative incidence of financial development on renewable energy consumption is completely nullified are 0.825; 2.15; 2.86; 3.52;3.36; and 0, 1, respectively. |
| Keywords: | Financial development, renewable energy consumption, governance quality, Africa |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:agd:wpaper:24/020 |
| By: | Martin, Ertl (Institute for Advanced Studies Vienna, Austria); Fortin, Ines (Institute for Advanced Studies Vienna, Austria); Hlouskova, Jaroslava (Institute for Advanced Studies Vienna, Austria); Koch, Sebastian P. (Institute for Advanced Studies Vienna, Austria); Kunst, Robert M. (Institute for Advanced Studies Vienna, Austria); Sögner, Leopold (Institute for Advanced Studies Vienna, Austria and Vienna Graduate School of Finance (VGSF)) |
| Abstract: | Recently, many countries were hit by a series of macroeconomic shocks, most notably as a consequence of the COVID-19 pandemic and Russia’s invasion in Ukraine, raising inflation rates to multi-decade highs and suspending well-documented macroeconomic relationships. To capture these tail events, we propose a mixed-frequency Bayesian vector autoregressive (BVAR) model with t-distributed innovations or with stochastic volatility. While inflation, industrial production, oil and gas prices are available at monthly frequencies, real gross domestic product (GDP) is observed at a quarterly frequency. Thus, we apply a mixed-frequency framework using the forward-filtering-backward-sampling algorithm to generate monthly real GDP growth rates. We forecast inflation in those euro area countries which extensively import energy from Russia and therefore have been heavily exposed to the recent oil and gas price shocks. To measure the forecast performance of our mixed-frequency BVAR model, we compare these inflation forecasts with those generated by a battery of competing inflation forecasting models. The proposed BVAR models dominate the competition for all countries in terms of the log predictive density score. |
| Keywords: | Bayesian VAR, mixed-frequency, forward-filtering-backward-sampling, inflation forecasting |
| JEL: | C5 E3 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ihs:ihswps:number56 |
| By: | Sastry, Kartik; Taylor, David; Leamy, Michael |
| Abstract: | Electrification of the transportation sector provides the means to significantly reduce greenhouse gas emissions from internal combustion engine vehicles (ICEVs). However, for electric vehicles (EVs) to remain a viable alternative to ICEVs, solutions must be developed to meet the associated growth in power demand (for charging) without stressing the power distribution infrastructure. One potential solution to this challenge is to control the EV charging load through smart charging. The objectives of the proposed research effort are to (i) clearly define the smart charging problem, (ii) complete a comprehensive literature review, (iii) develop and document fundamental models needed to analyze EV charging and grid impact, and (iv) develop mathematical algorithms for solving the smart-charging problem defined in (i). View the NCST Project Webpage |
| Keywords: | Engineering, Physical Sciences and Mathematics, Electric vehicles, smart charging, convex optimization, grid impact |
| Date: | 2023–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt0v64f30n |
| By: | Lawrence H. Goulder; Marc A.C. Hafstead; Roberton C. Williams III |
| Abstract: | Economists often regard broad-based carbon pricing (whether in the form of a carbon tax or cap and trade) as the most efficient policy to reduce carbon dioxide emissions. Relative to a narrower policy that exempts some emissions sources, a broader policy is often favored because it can exploit more low-cost emissions reduction opportunities and cause less emissions leakage to uncovered sources. Yet narrower approaches have gained considerable political support, partly because they avoid price increases for outputs (such as gasoline) regarded as especially critical to household budgets. Some analysts might lament any departure from broad carbon pricing, citing efficiency costs. This paper offers theory and numerical simulations revealing that such a shift need not sacrifice efficiency. This result reflects differences across sectors in distortions from preexisting taxes and in the elasticity of emissions with respect to the carbon price. Our analytical model reveals that a narrower policy that exploits these differences can be more cost-effective than a policy with a broad, economy-wide tax base. Our numerical model of the US economy compares quantitatively the effects of an economy-wide carbon price with those of several narrower policies, including one that applies only to the power sector, one that exempts gasoline, and one that exempts energy-intensive trade-exposed industries. We compare policies under alternative specifications for policy stringency and find that the broader policy always becomes more cost-effective at sufficiently high stringency. |
| JEL: | D58 D62 H21 H23 Q58 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32915 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | As the world continues to grow and urbanize, the significance of cities will also increase. Urban development is lengthy and costly, justifying the need for effective urban planning. Urban planning is a complex process with many often competing objectives, including sustainability and energy efficiency. Energy consumption is itself a significant concern and a key target of urban sustainability. Being energy efficient can greatly reduce greenhouse gas (GHG) emissions, lower energy costs and enhance residents’ quality of life. |
| Keywords: | Alternative fuels, Carbon market, Clean technology, Climate change |
| Date: | 2024–02–25 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2024-wb02 |
| By: | Nader AlKathiri; Abdulelah Darandary (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Using a sample of 94 countries, we analyze the contribution of energy to cross-country economic growth and convergence since 1980. By extending the traditional frontier approach to include energy as an additional factor of production, we decompose economic growth into components attributable to technological catch-up (movement toward or away from the frontier), technological change (shifts in the world production frontier) and changes in factor inputs per unit of labor (movement along the production frontier). |
| Date: | 2024–05–12 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp14 |
| By: | Yang Qiu; Puneet Kamboj; Mohamad Hejazi; Gokul Iyer; Page Kyle (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The industrial sector plays a crucial role in the economy of the Kingdom of Saudi Arabia (KSA). Its energy consumption primarily relies on natural gas and oil due to the abundance of these resources and their relatively low administered prices. To reduce oil dependence and create a more sustainable and resilient economy, the KSA has adopted several important policies to improve energy efficiency, manage domestic energy consumption, and pursue ambitious climate targets. |
| Keywords: | Air conditioning, Applied general model, Article 6, Blockchain |
| Date: | 2024–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp18 |
| By: | Zhiqiang Liao |
| Abstract: | We study the problem of variable selection in convex nonparametric least squares (CNLS). Whereas the least absolute shrinkage and selection operator (Lasso) is a popular technique for least squares, its variable selection performance is unknown in CNLS problems. In this work, we investigate the performance of the Lasso CNLS estimator and find out it is usually unable to select variables efficiently. Exploiting the unique structure of the subgradients in CNLS, we develop a structured Lasso by combining $\ell_1$-norm and $\ell_{\infty}$-norm. To improve its predictive performance, we propose a relaxed version of the structured Lasso where we can control the two effects--variable selection and model shrinkage--using an additional tuning parameter. A Monte Carlo study is implemented to verify the finite sample performances of the proposed approaches. In the application of Swedish electricity distribution networks, when the regression model is assumed to be semi-nonparametric, our methods are extended to the doubly penalized CNLS estimators. The results from the simulation and application confirm that the proposed structured Lasso performs favorably, generally leading to sparser and more accurate predictive models, relative to the other variable selection methods in the literature. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.01911 |
| By: | Candeias, Teresa De Jesus |
| Abstract: | This article aims to analyze and characterize the primary legal instruments used in the oil industry, with a particular focus on the contractual models that govern hydrocarbon exploration and production operations. It offers a classification of Joint Ventures, a cooperative mechanism that facilitates the shared allocation of risks and resources among the involved parties. The article also discusses License Agreements and Exploration Rights, which grant specific exploration and production rights, thereby regulating the relationship between the state and oil companies. The study proceeds with an analysis of Concession Agreements, highlighting their unilateral nature and the transfer of exploration rights under conditions specified by the grantor. Additionally, the article examines Production Sharing Contracts (PSCs), emphasizing their role in dividing production between the state and the contracted companies, with particular attention to mechanisms for maintaining economic balance and mitigating risks. The exploration of energy resources, particularly in developing countries, is often governed by complex contracts that are essential in structuring operations and securing financing. This study focuses on categorizing and describing the main contractual formats applicable to the upstream sector, addressing their legal and operational characteristics. By providing a deeper understanding of these contractual structures, the article contributes to the ongoing debate regarding the suitability of different contractual models in various geopolitical and economic contexts. |
| Keywords: | contracts; upstream; oil industry; legal; joint venture |
| JEL: | F1 K1 K12 K29 L6 L71 |
| Date: | 2024–08–20 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121849 |
| By: | H. Spencer Banzhaf; William Mathews; Randall Walsh |
| Abstract: | This study examines the relationship between racial segregation and environmental equity in Pittsburgh from 1910 to 1940. Utilizing newly digitized historical data on the spatial distribution of air pollution in what was likely America's most polluted city, we analyze how racial disparities in exposure to air pollution evolved during this period of heightening segregation. Our findings reveal that black residents experienced significantly higher levels of pollution compared to their white counterparts, and this disparity increased over time. We identify within-city moves as a critical factor exacerbating this inequity, with black movers facing increased pollution exposure. We also provide evidence of the capitalization of air pollution into housing markets. Taken as a whole, our results underscore the importance of considering environmental factors in discussions of racial and economic inequalities. |
| JEL: | H44 I15 N30 N92 Q53 R2 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32950 |
| By: | Rich Ryan; Nyakundi Michieka |
| Abstract: | The price of oil can rise because of a disruption to supply or an increase in demand. The nature of the price change determines the dynamic effects. As Kilian (2009) put it: "not all oil price shocks are alike." Using the latest available data, we extend Kilian's (2009) analysis using the R ecosystem and provide more evidence for Kilian's (2009) conclusions. Inference based on unknown conditional heteroskedasticity strengthens the conclusions. With the updated shocks, we assess how a local economy responds to the global oil market, an application that is relevant to policymakers concerned with the transition away from fossil fuels. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.00769 |
| By: | Lykke E. Andersen (SDSN Bolivia); Adrián Villarroel (SDSN Bolivia); Diego Vladimir Romecín Duarte (SDSN Bolivia); Pablo Andrés Cuadros Roca (SDSN Bolivia); C. Ariel Zeballos (SDSN Bolivia); Fabian Calderón (SDSN Bolivia) |
| Abstract: | This paper documents the construction of an anonymized research database with 132 million observations of electricity consumption from individual electricity meters distributed throughout Bolivia’s territory, during the period 2012 to 2016. The research database was constructed from 6101 files submitted by the different electricity distribution companies to the national Electricity Authority, and was cleaned, quality checked, simplified, harmonized, and anonymized. Each electricity meter was also attributed to one of Bolivia’s 339 municipalities to facilitate sub-national level research on many different topics, such as energy consumption, poverty, inequality, and migration. |
| Keywords: | Electricity consumption, inequality, Bolivia |
| JEL: | D30 D63 L94 O13 |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0223 |
| By: | Susanta, Datta |
| Abstract: | The Indian sustainable debt market has grown significantly, dominated by green bonds, but green finance is still at a nascent stage in India. This paper tries to assess India’s relative position in green bond market with reference to world market on the basis of listing and trading information of global sustainable bond markets. Disaggregate level data retrieve from Luxembourg Green Exchange from 1999 to 2024 and SEBI, NSE and Climate Bond Initiatives for Indian Sustainable Bond Market used for this research. The empirical evidence suggest green bond has capture maximum market share in the global market. Luxembourg Green Exchange has maximum variability of bond coupon as well as duration (in months) of bond maturity. EUR, USD widely used currency used for bond trading, while INR has limited presence in the global market. World Bank is the highest issuing institute for both for Green Bonds and Sustainable Bonds in global market. Indian private sector has 84% market share in Indian sustainable bond market. Indian Companies have been involved in issuing green, social, and sustainability bonds, as well as innovative debt instruments such as Sustainability-Linked Bonds and skill impact bonds. However, there are several challenges faced by the green bond market in India, including the lack of a standardized framework for green bonds, limited investor awareness, and the need for more robust disclosure and reporting standards. Increased standardization, openness, and alignment with national and international best practices in policy formulation are essential for the development of India's sustainable finance sector. |
| Keywords: | Green Finance, Sustainable Finance, Bond, Debt, Securities, Green, Sustainable |
| JEL: | G12 G14 Q54 |
| Date: | 2024–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:119925 |
| By: | Kim, Hyunseok |
| Abstract: | South Korea's strategies for deploying battery electric vehicles (BEVs) primarily include providing purchase subsidies and expanding charging infrastructure. An empirical analysis of new vehicle registrations from 2019 to 2022 shows that investing in charging facilities is more costeffective than offering purchase incentives for increasing BEV adoption. To achieve a higher share of BEVs, a stronger policy focus on improving the charging network is necessary to stimulate overall demand for BEVs. |
| Keywords: | Electric vehicle, purchase, subsidy, public spending, sustainable mobility, impact analysis, South Korea |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kdifoc:302800 |
| By: | Fatih Karanfil; Axel Pierru (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The selection of welfare-enhancing projects necessitates the determination of the present value of cash flows from a public policy perspective. For an oil-exporting economy, the domestic energy transition often implies displacing oil from domestic consumption. Economic dependence on oil affects the public discount rate for oil-related cash flows in two opposite ways. On the one hand, it renders the economy more volatile, lowering the risk-free discount rate; on the other hand, it increases the correlation between consumption and the oil price, resulting in a higher risk premium. To study these opposite effects, we first derive the public discount rate for an oil-related investment project. Our framework considers economic uncertainty and an oil price-related risk premium, and it makes it possible to value oil at its opportunity cost. We illustrate our methodology using data from a panel of 26 oil-exporting countries. The results indicate that a risk-free discount rate of 3.1% is appropriate for our panel. However, to discount oil-related cash flows, a risk premium of 1.4% needs to be added to the risk-free rate, yielding a risk-adjusted real discount rate of 4.5%. We find significant disparities between country-specific public discount rates. Additionally, for each country, we assess the present value of reducing domestic oil consumption by a barrel per day from 2023 to 2040, decomposing the different effects. Oil-exporting countries can use our estimates to make investment or policy decisions. |
| Keywords: | Applied general model, Bottom up model, Discount rate, Discounting |
| Date: | 2024–06–05 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp09 |
| By: | Yiwen Chen (Shandong Agricutural University, CN); Nora Paulus (University of Luxembourg); Xi Wan (Nanjing University, CN); Benteng Zou (DEM, Université du Luxembourg) |
| Abstract: | Carbon capture and storage (CCS) can be considered as one of the key tools in the fight against climate change, providing a promising method to reduce human-generated CO2 emissions. Despite its potential, the high cost of CCS deployment leads to an uneven adoption across countries. This paper employs a differential game model with heterogeneous countries facing transboundary pollution to determine the optimal timing to initiate CCS projects, and delivers analytical results for the existence of Markov Perfect Equilibria and the numerical illustration. We show that: (1) The trigger threshold for CCS deployment depends not only on a country’s own costs, but also on the costs of other countries and the costs associated with pollution damage. (2) The optimal timing for different countries to initiate their CCS projects occurs when a country’s pollution level reaches a critical threshold. (3) Countries are more inclined to freeride on the pollution abatement efforts of others when the pollution damage costs are symmetric rather than asymmetric. (4) Finally, we provide sufficient conditions under which some countries refrain from engaging in CCS, despite facing the same pollution damage costs as others. |
| Keywords: | Carbon capture and storage, optimal timing, Markovian perfect equilibrium. |
| JEL: | Q53 Q58 C61 C72 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:24-07 |
| By: | Hossa Almutairi; Axel Pierru; James L. Smith (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | This paper examines the type and quality of information that OPEC needs to stabilize the oil market. We extend our previous structural model, in which OPEC makes potential mistakes in judging the size of market shocks, to now include the possibility that OPEC misestimates how the market price would react to any given adjustment to its production level. Thus, we present a model that incorporates both observational errors regarding physical market developments as well as potentially erroneous judgments regarding the elasticities of supply and demand. We use the model to determine the counterfactual (unstabilized) prices that would have prevailed if OPEC, acting under a broad range of misinformation, had not attempted to stabilize the price. We find that misestimation of the demand and supply elasticities generally increases the computed counterfactual price volatility. By comparison to historical volatility, these elevated counterfactual volatilities strengthen our previous finding that OPEC has substantially decreased price volatility by regulating production from its buffer of spare capacity. This is true of the OPEC+ period and the period prior to OPEC+. |
| Date: | 2024–05–28 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp16 |
| By: | Ettore Gallo (Department of Economics and Management, University of Parma, Italy) |
| Abstract: | The paper develops a theoretical model to examine the effects of transitioning to green investment on business cycle dynamics and CO2 emissions reduction. Building on Goodwin's (`The Nonlinear Accelerator and the Persistence of Business Cycles', Econometrica, pp. 1-17, 1951) endogenous business cycle theory, the paper models the shift from brown to green investment as a logistic diffusion process. This framework captures the short-run procyclicality of emissions while allowing for both coupling and decoupling scenarios between output and emissions over the business cycles. The model demonstrates that the investment channel's impact on emissions varies depending on the transition's timing, magnitude, and sensitivity to green-brown investment dynamics. Furthermore, the paper shows that the integration of climate damage can result in milder expansion phases and sharper downturns, potentially offsetting the positive effects of the green transition. The analysis contributes to the understanding of short-run economy-ecology feedback mechanisms, with the model's flexibility capturing varying degrees of decoupling between emissions and output, thus accommodating scenarios in both advanced economies and emerging markets. |
| Keywords: | Green investment, ecology-economy feedback, climate change, climate damage, business cycle |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:new:wpaper:2413 |
| By: | Mingpu Ma |
| Abstract: | This paper presents an analysis of Green Gross Domestic Product (GGDP) using the System of Environmental-Economic Accounting (SEEA) model to evaluate its impact on global climate mitigation and economic health. GGDP is proposed as a superior measure to tradi-tional GDP by incorporating natural resource consumption, environmental pollution control, and degradation factors. The study develops a GGDP model and employs grey correlation analysis and grey prediction models to assess its relationship with these factors. Key findings demonstrate that replacing GDP with GGDP can positively influence climate change, partic-ularly in reducing CO2 emissions and stabilizing global temperatures. The analysis further explores the implications of GGDP adoption across developed and developing countries, with specific predictions for China and the United States. The results indicate a potential increase in economic levels for developing countries, while developed nations may experi-ence a decrease. Additionally, the shift to GGDP is shown to significantly reduce natural re-source depletion and population growth rates in the United States, suggesting broader envi-ronmental and economic benefits. This paper highlights the universal applicability of the GGDP model and its potential to enhance environmental and economic policies globally. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.02642 |
| By: | King Abdullah Petroleum Studies and Research Center (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Rising ambitions for an energy transition are changing how energy suppliers and consumers think about fuel supply chains. These energy transition ambitions have revitalized interest in alternative energies and technological solutions that reduce greenhouse gas (GHG) emissions to combat climate change. For example, hydrocarbon producers are considering several technological pathways to decarbonize their oil and gas value chains, including carbon capture, utilization, and storage (CCUS) and hydrogen energy. Energy-importing countries are wary of the carbon intensity of fossil fuels and are increasingly taking measures to prevent “carbon leakages.” |
| Keywords: | Circular Carbon Economy (CCE), Saudi Arabia |
| Date: | 2024–01–02 |
| URL: | https://d.repec.org/n?u=RePEc:prc:wbrief:ks--2023-wb02 |
| By: | Rubal Dua; Tamara Sheldon (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Research has shown that when combined in a mobility-on-demand (MOD) framework, automation, carpooling, and electrification have the potential for theoretically large emission reductions. However, there is insufficient research regarding the consumer preferences for and behavioral responses to this vision of transportation in the future. In this paper, we use choice experiment data collected from an online ride-hailing survey to quantify the consumer preferences for these technologies. |
| Keywords: | Ride-hailing, Vehicle Electrification |
| Date: | 2024–03–28 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp06 |
| By: | Elisabetta Cappa; Francesco Lamperti; Gianluca Pallante |
| Abstract: | A rapid transition towards renewable energy sources is crucial to address climate change and improve local energy independence. However, the acceptability of this transition often faces resistance due to concerns about potential job-losses in the fossil-intensive sectors, while the employment potential of renewable energy technologies remains unclear. In this study, we address this concern by employing a novel and detailed geolocalized dataset of energy power units across four technologies and three decades, to examine theemployment impacts of renewable energy investments in four large European countries. To mitigate for the possible non-random allocation of renewable energy technologies, we leverage the physical potential of each region in relation to renewable energy sources, to isolate its exposure to technology-specific investments. We find that the deployment of renewable energy plants has a positive and long-lasting impact on employment. Our central estimates suggest that 1 MW of new renewable energy installed capacity creates around 40 jobs in 7 years locally, indicating that 1 Million USD invested in renewable energy technologies generates approximately 15 jobs over the same time frame. These estimates are mostly driven by the effects generated by the solar and wind installations on the construction sector. We find evidence of substantial heterogeneities across regional features, where rural and low-income areas are the ones experiencing the largest employment effect from renewable energy deployment. Overall, our findings suggest that green energy investments can constitute as a strategic asset to spur local jobs and encourage rural development. |
| Keywords: | renewable energy, employment multiplier, green stimulus, shift-share |
| Date: | 2024–09–11 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/21 |
| By: | Frank Felder; Marie Petitet (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | Probabilistic cost-benefit analyses of the reliability, resiliency, and adaptability of electric power systems can inform policymakers on how to efficiently reduce the frequency, magnitude, duration, and costs of power outages; how to cost-effectively improve the integration of variable and intermittent renewables; and how to enhance equitable outcomes. The elements needed for these analyses are available, and the computations are reasonably tractable due to the rapid improvements in the computational ability to conduct tens of thousands of detailed power system simulations quickly. |
| Keywords: | Battery storage, Benefits of electricity trade, Business models, Climate change |
| Date: | 2024–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp19 |
| By: | Moamar Sayed Mouchaweh; Amro Elshurafa (King Abdullah Petroleum Studies and Research Center) |
| Abstract: | The digitalization of power systems can contribute to a smoother energy transition by, for example, maximizing the use of renewable energy (RE; i.e., minimizing curtailment), peak shaving, and relaxing grid congestion. Collectively, these and other benefits play an important role in creating an affordable, sustainable, and reliable supply. |
| Date: | 2024–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:prc:dpaper:ks--2024-dp24 |