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on Energy Economics |
| By: | Andrew J. Hinchberger; Mark R. Jacobsen; Christopher R. Knittel; James M. Sallee; Arthur A. van Benthem |
| Abstract: | The marginal cost of electricity fluctuates hour-by-hour, yet retail customers typically face flat prices. Using data from all seven US wholesale markets and a new method to evaluate alternative rates set in advance that accounts for equilibrium price effects, we estimate efficiency gains from time-varying price schedules that better align price with cost. We have three main results. First, time-of-use rates and critical-peak pricing, the two most common time-varying rate plans, each correct about 10% of mispricing. Second, complex rate structures based on historical prices often backfire. Third, real-time pricing with price ceilings can capture most potential efficiency gains while limiting customer risk. |
| JEL: | L94 L97 Q41 Q48 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32995 |
| By: | Daniel Davi-Arderius; Tooraj Jamasb |
| Keywords: | Energy-only market, day-ahead electricity markets, negative prices, renewables, decarbonisation, ancillary services |
| JEL: | D47 L10 L22 L50 L94 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2413 |
| By: | Ramadoss, Trisha; Davis, Adam; Tal, Gil |
| Abstract: | The path to transportation decarbonization will rely heavily on electric vehicles (EVs) in the United States. EV diffusion forecasting tools are necessary to predict the impacts of EVs on local energy demand and environmental quality. Few EV adoption models operate at a fine spatial scale and those that do still rely on aggregated demographic information. This adoption model is one of the first attempts to employ a synthetic population to examine EV distribution at a fine spatial and demographic scale. Using a synthetic population at the Census-Tract-level, enriched with household fleet body types and home-charging access, the researchers consider the effect of vehicle body type on EV spatial distribution and home-charging access in California. The project examines two EV body type mixes in a high electrification scenario where 8 million EVs are distributed across 6 million households in California: a “Small Vehicles” scenario where 6 million EVs are passenger cars and 2 million EVs are trucks, sport utility vehicles (SUVs), or vans and a “Large Vehicles” scenario with 4 million of each category. The authors find that an electrification scenario with more electric trucks and SUVs serves to distribute electrified households more evenly throughout the state, shifting them from urban to rural counties, while there is little impact on home-charging access. View the NCST Project Webpage |
| Keywords: | Physical Sciences and Mathematics, Social and Behavioral Sciences, Electric vehicles, synthetic population, EV adoption, electric vehicle market |
| Date: | 2024–08–31 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt2b05w8pk |
| By: | Hugo Lauret (LEST - Laboratoire d'Economie et de Sociologie du Travail - AMU - Aix Marseille Université - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | L'objectif de cette communication est d'identifier la nature des tensions organisationnelles qui émergent du paradoxe entre la transition numérique et la transition écologique dans les organisations culturelles, et d'examiner la manière dont les acteurs agissent face à ces tensions afin de les résoudre (ou a minima de les gérer). Ainsi, pour identifier ces tensions, nous avons réalisé une étude de cas approfondie sur un centre de création des arts et des cultures numériques qui diffuse des œuvres numériques et encourage les formes artistiques qui recourent aux nouvelles technologies. Ce travail de recherche permet d'apporter un éclairage précieux sur les enjeux du secteur culturel face aux attentes sociétales pour que les arts et la culture continuent d'être des agents de changement pertinents dans l'action climatique à travers leurs capacités à façonner les imaginaires et les valeurs. |
| Keywords: | Arts numériques, transition numérique, transition écologique, gestion des paradoxes, changement organisationnel, industries culturelles et créatives |
| Date: | 2024–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04693573 |
| By: | Willem THORBECKE |
| Abstract: | Oil prices are volatile. How do oil prices affect Taiwanese industries? This paper investigates how oil price increases driven by shocks to global aggregate demand and to oil supply affect Taiwanese sectoral stock returns. It uses Hamilton’s (2014) approach to divide oil price changes into portions driven by demand and supply factors. The results indicate that the semiconductor sector and Taiwan Semiconductor Manufacturing Company (TSMC) are harmed by oil price increases. Since oil prices are often high and quick to change, these findings imply that TSMC should expedite its goal of switching from depending on fossil fuels to utilizing renewable energy. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:24071 |
| By: | Willem THORBECKE |
| Abstract: | Oil prices have been high and volatile. This paper investigates how oil prices affect Indonesian and South Korean stocks. Using Hamilton’s (2014) method to decompose oil prices into portions driven by shocks to aggregate demand and to oil supply, the results indicate that demand-driven oil price increases benefit sectors such as coal, iron and steel, and shipbuilding that compete in global markets. They harm sectors such as food and consumer goods that use oil for production and depend on consumer purchasing power. Supply-driven oil price increases benefit the resource sector in Indonesia and harm the airlines, electricity, and industrial transport sectors in Korea. The finding that several sectors benefit from oil price increases indicates that blanket fuel subsidies are suboptimal. The finding that many sectors suffer from oil price increases indicates that Indonesia and Korea should reduce their exposure to oil by switching to sustainable energy sources. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:24070 |
| By: | Abdhut Deheri (Assistant Professor, School of Social Sciences and Languages, Vellore Institute of Technology, Vellore); Lecturer/ Research Associate, Madras School of Economics, Chennai ((Corresponding Author) Director and Professor, Madras School of Economics, Gandhi Mandapam Road, Chennai) |
| Abstract: | The paper examines the existence of asymmetry and nonlinearity in the influence of global crude oil price shocks on oil product prices in India for the time period April 2000 to March 2022. For the purpose, novel assessments of symmetry and linearity, namely slope and impulse response tests, have been utilized. The findings of the slope tests indicate that there is absence of nonlinearity in the reaction of the majority of oil product prices to global crude oil price shocks. In contrast, the results obtained from the impulse response test indicate that with the exception of liquid petroleum gas, all oil product prices exhibit asymmetric responses to positive and negative crude oil shocks of varying magnitudes. The findings are in line with prior research on the transmission of oil prices to oil product prices and provide evidence for the existence of a rockets-andfeathers phenomenon in the Indian oil products market. From a policy standpoint, the results suggest the government to consider reducing taxes on petroleum products. This measure would help to ensure a symmetric response of oil product prices to global fluctuations in crude oil prices and expected to mitigate the welfare loss experienced by consumers due to the presence of asymmetry |
| Keywords: | Oil shocks, Oil products prices, Asymmetry, Non-linearity, Slope test, Impulse response test, India. |
| JEL: | C3 C22 D4 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:mad:wpaper:2024-265 |
| By: | Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Justitia O. Nnabuko (University of Nigeria, Nsukka, Nigeria); Geraldine E. Ugwuonah (University of Nigeria, Nsukka, Nigeria); Josaphat U. Onwumere (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | We examine the impact of multinational oil companies’ (MOCs) corporate social responsibility (CSR) using global memorandum of understanding (GMoU) on mitigating the resurgence of inter-communal violence in Niger Delta, Nigeria. Using explanatory research design, the study adopted mixed methods to answer the research questions and test the hypotheses of the study. Primary data were generated from a sample of 1200 respondents selected form all the nine states of the region using multiple sampling techniques. We carried out both survey with structured questionnaire and key informant interview to ascertain the effect of CSR on the resurgence of inter-communal violence in the region. Results from the use of a logit model and use of propensity score matching to determine the mean difference between variables in the treatment and control shows that a bantam but significant CSR interventions have been made by the MOCs in the areas that will discourage people from engaging in inter-communal violence. The findings suggest that an increase in CSR targeted at improving access to cultivatable land, enhanced fishing space, reducing multi-dimensional poverty, as well as reducing frustration and indignation; will dissuade local people from involvement in inter-communal violence. |
| Keywords: | Oil extraction communities, inter-communal violence, corporate social responsibility, Nigeria’s Niger Delta |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/010 |
| By: | Naudé, Wim (RWTH Aachen University) |
| Abstract: | This paper discusses four dimensions of the economics of AI that are neglected in business school and university teaching and research. First, students are not being taught that there is no 4th Industrial Revolution; on the contrary, the narrative of the inevitability and wonders of the 4IR is a vital staple of the curricula. Second, students are rarely told that we do not live in a technologically disruptive era; on the contrary, the mantra of "disrupt or else be disrupted" in a world of ceaseless innovation is drummed into students. Third, little is discussed about AI's scaling problem - it faces ecological constraints due to being an energy and water guzzler. Fourthly, business schools largely fail to create awareness that AI has essentially become a project of platform capitalism (techfeudalism) and that the last extraction zone it is being applied to is the Military Industrial Complex (MIC), in furtherance of the Permanent War Economy. Implications for AI governance and business school teaching and research are drawn from this big picture. |
| Keywords: | Artificial Intelligence, capitalism, economic growth, climate change, war |
| JEL: | P18 P17 N40 Q55 O33 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17306 |
| By: | Ferrer, Jimy; Castro Salazar, Mauricio |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80701 |
| By: | Acosta, Claudia; Oliveira, Vitor |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80698 |
| By: | Rodríguez, Ennio; Padilla, Ramón; Santacruz, Camilo |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80703 |
| By: | - |
| Abstract: | El presente documento tiene como objetivo fomentar la formulación de políticas públicas de electromovilidad en el transporte público de Costa Rica con una mirada de articulación de distintos actores, incluidos el Poder Legislativo, los sectores técnicos y el sector privado. Se busca así promover la realización de debates que permitan incorporar puntos de vista más amplios y diversificados sobre el tema, y a la vez facilitar la toma de decisiones sobre la base de estudios comparativos que contribuyan a lograr esa transición. En los capítulos del documento se aplican distintas metodologías de análisis, de manera que en cada uno de ellos se presenta un conjunto de propuestas de políticas o acciones aplicables al tema analizado, lo que permite visualizar desde una perspectiva más completa los posibles caminos para acelerar la transición hacia la electromovilidad del transporte público en el país. |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80666 |
| By: | Ñancupil, Ignacio; Gil Sevilla, Marina; Poveda Bonilla, Rafael |
| Date: | 2024–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80705 |
| By: | Simplice A. Asongu (Yaoundé, Cameroon); Amarachi O. Ogbonna (Amritapuri, India); Mariette C. N. Mete (Yaoundé, Cameroon) |
| Abstract: | The present research extends the extant literature by investigating the hypothesis on whether marriage can be a substitute for financial inclusion in energy poverty reduction in Ghana. Pooled data and two stage least squares techniques are used in the estimation process and the validity of the tested hypothesis (i.e., that marriage is a substitute for financial inclusion in energy poverty mitigation) is based on two main criteria: (i) a positive interactive effect relative to the negative unconditional effect of marriage; (ii) a marriage net effect lower in magnitude compared to the unconditional effect of marriage and (iii) an insignificant interactive effect when both unconditional effects are negative. The investigated hypothesis is not valid in the full sample, urban sub-sample and female sub-sample while it is valid in the rural and male sub-samples. Policy implications are discussed. |
| Keywords: | Energy poverty; financial inclusion; consumption poverty; education; household income |
| JEL: | D03 D12 D14 I32 Q41 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:agd:wpaper:24/031 |
| By: | Boonpanya, Ornicha |
| Abstract: | With the advancement of information and communications technology (ICT), we are exposed to environmental knowledge from various sources and can witness the impacts of environmental crises in real time. Consequently, the rise of global environmental concerns has led to campaigns and initiatives from both the public and private sectors to address these issues. The question remains: Why are sustainable ways of living still far from being achieved, despite industries' efforts to transition to greener pathways and public sector attempts to promote policies that encourage behavioral changes? While environmental awareness is linked to behavior, translating this knowledge into consistent action at the individual level remains an ongoing challenge. Apart from systematic obstacles such as the lack of supportive infrastructure and economic factors, irrational behaviors and ingrained habits often deter individuals from making sustaible choices. Digital nudging harnesses the power of technology to counteract these barriers by influencing more sustainable decisions with various strategies. Therefore, this study aims to investigate how digital nudges with informational provisions influence green purchase intentions. |
| Keywords: | Digital nudges, Green claims, Social norms, Green purchase intentions, Greenwashing |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:itsb24:302500 |
| By: | Harry O'Rahilly (Department of Economics and School of Politics and International Relations, University College Dublin, Dublin, Ireland); Patrick Paul Walsh (Department of Economics and School of Politics and International Relations, University College Dublin, Dublin, Ireland) |
| Abstract: | We model the retail motor fuel market in Ireland in a two-stage market entry game, with exogenous sunk costs in stage one, and price competition with horizontal product differentiation in stage two, utilizing Salop (1979). Using GIS tools, we show how driving times, benchmarked against road distance and straight-line measures, alter estimates of the disutility of traveling between rival locations. We estimate a robust and unbiased long-run equilibrium relationship between mark-ups and market structure, identified by driving times between locations to conduct an ex-post evaluation of a merger and divestment remedies in the retail motor fuel market in Ireland. |
| Keywords: | Market Structure, Performance; Spatial Econometrics |
| JEL: | L10 L38 |
| Date: | 2024–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:ucd:wpaper:202404 |
| By: | Rousseau, Lola; Næss, Jan Sandstad; Carrer, Fabio; Amini, Sara; Brattebø, Helge; Hertwich, Edgar (Norwegian University of Science and Technology) |
| Abstract: | Resource efficiency strategies are key to reduce material use and help limit global warming to below 2°C in 2100. Understanding the role of such strategies at municipal-level requires a localized approach. Here we evaluate a ramp-up of resource efficiency strategies and their associated effects on vehicle usage and climate benefits towards 2050 for 19 individual sub-regions within the Greater Oslo region in Norway. In our scenarios, material stocks increase from 344 megatonnes (Mt) in 2022 to 349-367 Mt in 2050 driven by population growth, with low-end estimate relying on a sufficiency scenario limiting floor area per capita and banning new single-family houses. The sufficiency (SUF) scenario reduces total material consumption until 2050 (48 Mt) with 28% relative to a business-as-usual (BAU) scenario (66.3 Mt) with continuation of ongoing trends, thereby reducing GHG emissions from material production by 17% (BAU: 12.44 MtCO2-eq, SUF: 10.36 MtCO2-eq). If resource efficiency strategies are combined with rapid material production decarbonization in-line with a 2°C scenario, a 30% reduction in emissions is achievable (8.67 MtCO2-eq). Car ownership rates and traveled distance per capita decrease in the sufficiency scenario compared to 2022 with 6.4%. Assuming the current relationship between settlement characteristics and transport demand, total driving distance fails to decline due to population growth. Limiting the floor-area per capita in residential buildings significantly decreases material demand. Resource efficiency strategies including densification need to be complemented with a rapid decarbonization of material supply and stronger incentives to move away from car driving to maximize climate change mitigation. |
| Date: | 2024–09–17 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:9ek48 |
| By: | Pablo Garcia; Pascal Jacquinot; ÄŒrt LenarÄ iÄ; Kostas Mavromatis; Niki Papadopoulou; Niki Papadopoulou |
| Abstract: | We analyze the economic impact of the green transition in the euro area by extending the Euro Area and Global Economy (EAGLE) model with green and brown energy sectors. Energy goods are consumed as final goods by households and as inputs by intermediate goods firms. A carbon tax manifests itself as an adverse cost-push shock. Without subsidies to green energy firms, the green transition is limited to household expenditure switching towards green energy goods. When authorities direct subsidies to green energy firms a strong supply effect in the market for green energy is triggered lowering its price and boosting the intermediate good sector’s demand for green energy inputs. When carbon taxes are raised globally, the recession in the euro area deepens while inflationary pressures amplify, triggered partly by a weakening of the euro. Taxes on brown capital investment are also contractionary but lead to a decline in inflation. In this case, subsidies to investment in green capital can mitigate the recession and are essential to trigger a switch towards green energy consumption goods and inputs. |
| Keywords: | climate policy; Carbon Taxation; Monetary Policy; Fiscal Policy; Euro Area; DSGE modeling |
| JEL: | C53 E32 E52 F45 H30 Q48 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:dnb:dnbwpp:816 |
| By: | Thiemo Fetzer (University of Warwick & University of Bonn); Christina Palmou (Office for National Statistics (ONS), UK); Jakob Schneebacher (Competition and Markets Authority (CMA), UK & King’s College London) |
| Abstract: | We study how businesses adjust to significant rises in energy costs. This matters for both the current energy crisis and the longer-term shift towards Net Zero. Using firm-level real-time survey and administrative data backed by a pre-registered analysis plan, we examine how firms respond to the energy price shock triggered by Russia's invasion of Ukraine along output, price, input, process and survival margins. We find that, on average, firms pass on some cost increases, build up cash reserves, and face higher debt, but do not yet see layoffs or bankruptcies. However, effects are highly heterogeneous by size and industry: for instance, small firms tend to increase cash reserves and prices, while large firms invest more in capital. We estimate separate elasticities for many small industry cells and subsequently use k-means clustering techniques on the estimated effects to identify high-dimensional firm-adaptation archetypes. These estimates can help tailor firm support in the energy transition both in the short and the long term. More generally, the machinery developed in this paper enables policymakers to evaluate and adjust economic policy in near-real time. |
| Keywords: | Energy price shock, firm dynamics, climate change, high-dimensional analysis |
| JEL: | D22 D24 H23 L11 O30 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:337 |
| By: | Audun Botterud; Christopher R. Knittel; John Parsons; Juan Ramon Senga; Drew Story |
| Abstract: | The substantial decline in the cost of wind and solar generation over recent decades has significantly altered the energy landscape. With these technologies becoming economically viable, even without stringent decarbonization policies, the role of interregional transmission has become increasingly important. This study examines the value of interregional transmission to the U.S. grid under current policies and deep decarbonization scenarios. By utilizing the GenX capacity expansion model, we evaluate the proposed BIG WIRES Act, which mandates a minimum interregional transfer capability requirement. Our analysis focuses on four key areas: interregional transmission builds and grid characteristics, electricity system cost savings, grid reliability during extreme weather events, and climate benefits. Results show that the Act can lead to a 68% increase in interregional transfer capability under current policies, resulting in annual system cost savings of $487 million and a 43.33 Mmt reduction in CO2 emissions. The benefits are even greater under a 95% CO2 reduction mandate. The study underscores the importance of interregional transmission in optimizing renewable energy use, enhancing grid reliability, and achieving cost savings and emissions reductions. |
| JEL: | H23 L51 Q58 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:32996 |
| By: | Zhang, Xin (Beijing Normal University); Wang, Yixuan (Ohio State University); Hu, Xingyi (Ohio State University); Chen, Xi (Yale University) |
| Abstract: | This paper examines the impact of fetal exposure to air pollution on low-stakes test performance across a broad age range, with a focus on gender-specific parental responses to this negative shock. Using data from a nationally representative survey in China, we find that fetal PM2.5 exposure significantly reduce cognitive ability in women, particularly those with brothers. Gender-biased human capital investment by families tends to amplify the harmful effects for girls, while diminishing these effects for boys. Specifically, when exposed to the same level of fetal PM2.5, females receive less homework assistance from their families and attain lower levels of education. |
| Keywords: | air pollution, cognitive ability, fetal exposure, gender bias, parental investment |
| JEL: | Q53 I24 D13 J16 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17288 |
| By: | Vashold, Lukas; Pirich, Gustav; Heinze, Maximilian; Kuschnig, Nikolas |
| Abstract: | Minerals are essential to fuel the green transition, can foster local employment and facilitate economic development. However, their extraction is linked to several negative social and environmental externalities. These are particularly poorly understood in a development context, undermining efforts to address and internalize them. In this paper, we exploit the discontinuous locations of mines along rivers and their basins to identify causal effects on agricultural yields in Africa. We find considerable impacts on vegetation and yields downstream, which are mediated by water pollution and only dissipate slowly with distance. Our findings suggest that pollution from mines may play a role in the limited adoption of intensive agriculture. They underscore an urgent need for domestic regulations and international governance to limit negative externalities from mining in vulnerable regions. |
| Keywords: | pollution; agriculture; river basin; mining; earth observation |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wus005:67404185 |
| By: | Elvis K. Ofori (Zhengzhou, Henan, China); Simplice A. Asongu (Johannesburg, South Africa); Ernest B. Ali (Ekaterinburg, Russia); Bright A. Gyamfi (Istanbul, Turkey); Isaac Ahakwa (Hefei, China) |
| Abstract: | Since the industrial era, the selection of energy sources to facilitate economic advancement has been criticized because of the resulting ecological calamity. This has prompted the introduction of radical approaches such as ISO 14001, which tackles the drivers of pollution. Therefore, this study analyses the ISO 14001 - environment nexus from three distinct points of view BRICS, MINT, and G7 countries from 1999-2020. Also, our work fills an extant gap in assessing structural change and innovation's role in augmenting the relationship. The Driscoll and Kraay (DK) estimator is employed as an analytical tool for cross-sectional dependence and slope homogeneity, while the fixed effects approach provides sufficient robustness checks on the findings. While some outcomes vary per bloc, others are relatively similar across the three (3) blocs. That is: (1) ISO 14001 shows an abatement portfolio for only the G7 bloc, and the Full sample. (2) Structural change showed potential for abating carbon emissions in all blocs. (3) Technology led to an increase in Pollution in all blocs except for the MINT economy. (4) ICT in the form of mobile phones also help reduce carbon emissions in all three blocs except for their composite. (5) Renewable energy helps reduce carbon emission in all blocs except for G7. ISO 14001 shows the potential to encourage green growth. As a result, policymakers should work to enhance ISO 14001 certification, which might serve as a management tool to promote sustainable development. |
| Keywords: | ISO 14001, Sustainable development, Structural change, Technology, BRICSMINT, G7 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/014 |
| By: | Ekström, Mathias (Dept. of Economics, Norwegian School of Economics and Business Administration); Sjåstad, Hallgeir (Dept. of Strategy and Management, Norwegian School of Economics and Business Administration); Bjorvatn, Kjetil (Dept. of Economics, Norwegian School of Economics and Business Administration) |
| Abstract: | To mitigate global warming, collective behavior change is needed. But which tools should policymakers prioritize: economic incentives, nudges, or a combination? Current evidence from social science provides little direct advice, as it either lacks credible identification of causality or objective long-term behavioral data. Addressing both limitations, we present causal evidence from a two-year field experiment, comparing how a small price incentive and a social norm-nudge affect the recycling behavior of more than 2, 000 households. The results show a large, immediate, and persistent positive effect of incentives on both the quantity and quality of recycling, but no effect of the norm-nudge. However, the price incentive reduced customer satisfaction, unless it was combined with the norm-nudge, suggesting that appealing to norms can make climate incentives more acceptable. |
| Keywords: | economic incentives; nudges; behavior change; norm-nudge |
| JEL: | J01 J12 |
| Date: | 2024–09–26 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhheco:2024_015 |
| By: | Leonelli, Giulia Claudia; Clora, Francesco |
| Abstract: | The US Inflation Reduction Act (‘IRA’) has heralded the advent of a new era of industrial policy within and beyond the US. As the net-zero economy transition unfolds and national economic security paradigms entrench, industrial policy is here to stay. Net-zero subsidies are employed as multi-purpose policy tools to promote domestic manufacturing, de-risk from China, and boost the net-zero transition. This new scenario prompts a fresh look at old questions surrounding environmental subsidies and their justification, actionability and countervailability. This article makes three contributions. First, it articulates a conceptual framework to assess questions surrounding the justification of net-zero subsidies. It advocates a direct focus on their environmental effectiveness, drawing a distinction between justifiable trade-distorting effects and unjustifiable protective or discriminatory application associated with the pursuit of reshoring or geopolitical goals. Second, it employs a careful analysis of different IRA tax credits to operationalize the article’s framework and test its robustness. Third, it draws on legal and economic insights to shed some light on the environmental effects of different groups of net-zero subsidies. On these grounds, it advances a streamlined threefold categorization and demarcates the boundaries within which different subsidies should be justifiable, non-actionable and non-countervailable. |
| JEL: | Q58 H23 K32 N50 |
| Date: | 2024–09–14 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:124604 |
| By: | Cyrille Grumbach (ETH Zürich); Didier Sornette (Risks-X, Southern University of Science and Technology (SUSTech); Swiss Finance Institute) |
| Abstract: | Bitcoin's substantial carbon footprint is widely acknowledged, though debates persist regarding its true scale. In this study, we present a novel methodology to quantify Bitcoin's carbon footprint, demonstrating a dramatic increase from 0.02 MtCOe in 2011 to 89 MtCO 2 e in 2023. By leveraging large language models to analyze Bitcoin Forum data, we accurately identify miners' hardware configurations, addressing the limitations of prior research that lacked empirical data. Our findings also highlight that Bitcoin mining is approaching cost-price parity, positioning it as a potentially enduring financial instrument. |
| Keywords: | Bitcoin, blockchain technology, Carbon footprint, Cryptocurrency mining, mining hardware |
| JEL: | C19 C80 Q01 Q56 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2451 |
| By: | Paul Simshauser; Joel Gilmore |
| Keywords: | Gas markets, gas turbines, renewables, firming capacity |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2414 |
| By: | Chukwunonso Ekesiobi (Anambra State, Nigeria); Stephen Obinozie Ogwu (Asaba, Delta State, Nigeria); Joshua Chukwuma Onwe (Enugu State, Nigeria); Ogonna Ifebi (Anambra State, Nigeria); Precious Muhammed Emmanuel (University of Ibadan, Nigeria); Kingsley Nze Ashibogwu (Ozoro, Delta) |
| Abstract: | Our study assesses financial development and debt status impact on energy efficiency in Nigeria as a developing economy. We combined the Autoregressive Distributed Lag (ARDL), FMOLS, and CCR analytical methods to estimate the parameters for energy efficiency policy recommendations. Secondary data between 1990 and 2020 were used for the analysis. The result confirms the long-run nexus between energy efficiency, financial development and total debt stock. Furthermore, the ARDL estimates for our key variables show that financial development promotes energy efficiency in the short run but hinders long-run energy efficiency. Total debt stock limits energy efficiency in Nigeria in short and long-run periods. The environmental consequences of energy intensity are being felt globally, with the developing countries most vulnerable. The cheapest way to curb these consequences is to promote energy efficiency to reduce the disastrous effect. Driving energy efficiency requires investment in energy-efficient technology, but the challenge for developing economies i.e. Nigeria's funding, remains challenging amid a blotted debt profile. This becomes crucial to investigate how financial sector development and debt management can accelerate energy-efficient investments in Nigeria. The financial sector must ensure the availability of long-term credit facilities to clean energy investors. The government must maintain a sustainable debt profile to pave the way for capital expenditure on clean energy projects that promote energy efficiency. The limitation of this study is that the scope is limited to Nigeria as a developing economy. The need to support energy efficiency projects is a global call requiring cross-country analysis. Despite our study focusing on Nigeria, it provides useful insights that can guide energy efficiency policy through the financial sector and debt management. |
| Keywords: | Financial Development, Public Debt, Energy Efficiency, Environment, Nigeria |
| JEL: | E22 E44 E62 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/016 |
| By: | Álvaro Carbonell Rodríguez; Jean Fouré; Elisa Lanzi |
| Abstract: | To meet the goal of net-zero emissions by 2050, Spain will need to take further climate action in the years ahead. Enhanced policy measures, such as taxes, subsidies and standards, will have implications for the public budget and for the economy. This paper quantifies these implications by comparing two scenarios developed with the ENV-Linkages model: a baseline with current policies, and a net-zero scenario in which more ambitious climate policy measures are implemented to reduce CO2 emissions. The analysis shows that ambitious climate action and economic growth can go hand-in-hand. While the consequences for the public budget will be strongly influenced by the chosen climate policy instruments, the findings illustrate that the changes in net fiscal revenues induced by additional climate policy can be small compared to the overall size of government revenues in 2050. |
| Keywords: | climate change mitigation, computable general equilibrium models, net-zero, public budget |
| JEL: | C68 H20 H61 Q43 Q54 H23 |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:oec:envaaa:250-en |
| By: | Bright A. Gyamfi (Bhatewar- Udaipur, India); Divine Q. Agozie (University of Ghana, Ghana); Ernest B. Ali (University of Ghana, Ghana); Festus V. Bekun (, Istanbul, Turkey); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | As the environmental sustainability effectiveness of various political systems is taken into consideration, it is doubtful as to whether the presumption of the overall efficiency of democracy can be sustained in global governance architecture. The effectiveness of autocracies and democracies (i.e., governance indicators are compared in the present study) with reference to strengths and weaknesses in environmental objectives. This analysis explores the effect of autocracy, democracy, as well as the trend of globalization on CO2 emissions for open and closed economies from 1990 to 2020. Crucial indicators such as economic growth, renewable energy and non-renewable energy are controlled for while examining the roles of economic expansion on the disaggregated energy consumption portfolios for both open and closed economies. The empirical analysis revealed some insightful results. First, for the open economies, with the expectation of non-renewable energy which show a positive significant impact on emissions, all variables show a negative effect on emissions. Furthermore, the closed economies result indicate that, apart from renewable energy which has a negative relationship with emissions, all the variables including the interaction terms have a positive relation with emissions. However, an inverted U-shaped environmental Kuznets curve (EKC) hypothesis was validated for both economies. |
| Keywords: | Open economies, closed economies, democracy, autocracy, Environmental Kuznets Curve, globalization index, environmental sustainability |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/005 |
| By: | Endong Wang |
| Abstract: | We propose a structural model-free methodology to analyze two types of macroeconomic counterfactuals related to policy path deviation: hypothetical trajectory and policy intervention. Our model-free approach is built on a structural vector moving-average (SVMA) model that relies solely on the identification of policy shocks, thereby eliminating the need to specify an entire structural model. Analytical solutions are derived for the counterfactual parameters, and statistical inference for these parameter estimates is provided using the Delta method. By utilizing external instruments, we introduce a projection-based method for the identification, estimation, and inference of these parameters. This approach connects our counterfactual analysis with the Local Projection literature. A simulation-based approach with nonlinear model is provided to add in addressing Lucas' critique. The innovative model-free methodology is applied in three counterfactual studies on the U.S. monetary policy: (1) a historical scenario analysis for a hypothetical interest rate path in the post-pandemic era, (2) a future scenario analysis under either hawkish or dovish interest rate policy, and (3) an evaluation of the policy intervention effect of an oil price shock by zeroing out the systematic responses of the interest rate. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.09577 |
| By: | Sophie Giordano-Spring (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School); Carlos Larrinaga (Universidad de Burgos); Géraldine Rivière-Giordano (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School) |
| Abstract: | Purpose Since the withdrawal of IFRIC 3 in 2005, there has been a regulatory freeze in accounting for emission rights that contrasts with the international momentum of climate-related financial disclosures. This paper explores how different narratives and institutional dynamics explain the failure to produce guidance on accounting for emission rights. Design/methodology/approach This paper mobilises the notion of field-configuring events to examine a sequence of six events between 2003 and 2016, including four public consultations and two dialogues between standard setters. The paper presents a qualitative analysis of documents produced in this space that investigates how different practices and narratives configured the field's positions, agenda, and meaning systems. Findings Accounting for emission rights was gradually decoupled from climate change and carbon markets, relegated to the research pipeline, and forgotten. The obstacles that the IASB and EFRAG found in presenting themselves as central in the recurring events, the excess of representations, and the increasingly technical and abstract debates eroded the 2003 momentum for regulation, making the different initiatives to revitalise the project vulnerable and open to scrutiny. Lukes (2021) refers to nondecision-making to express that some issues are suffocated before they are expressed. Originality/value The regulation of accounting for emission rights, an area that has received scant attention in the literature, provides some insights into the different narrative mechanisms that, materialising in specific times and spaces, draw regulatory attention to particular accounting issues, which are problematised and, eventually, forgotten. This study also illustrates that identifying interests is problematic as actors shift from alternative positions over a long period. The case examined also raises some doubts about the previous effectiveness of international standard setters in dealing with matters of connectivity between the environment and finance, as is the case for accounting for emissions rights. |
| Keywords: | Emission rights Accounting regulation IASB Field-configuring events Carbon Paper type Research, Emission rights, Accounting regulation, IASB, Field-configuring events, Carbon Paper type Research |
| Date: | 2024–07–17 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04686904 |
| By: | Rozendaal, Rik (Tilburg University, School of Economics and Management); Vollebergh, Herman (Tilburg University, School of Economics and Management) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:tiu:tiutis:ccec3fbf-d177-4a0d-ac6c-d87205fa57ba |
| By: | Richard S. J. Tol |
| Abstract: | An updated and extended meta-analysis confirms that the central estimate of the social cost of carbon is around $200/tC with a large, right-skewed uncertainty and trending up. The pure rate of time preference and the inverse of the elasticity of intertemporal substitution are key assumptions, the total impact of 2.5K warming less so. The social cost of carbon is much higher if climate change is assumed to affect economic growth rather than the level of output and welfare. The literature is dominated by a relatively small network of authors, based in a few countries. Publication and citation bias have pushed the social cost of carbon up. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2409.08158 |