|
on Energy Economics |
| By: | Abeliansky, Ana Lucia; Prettner, Klaus; Rodriguez-Crespo, Ernesto |
| Abstract: | What are the environmental impacts of the increasing use of automation technologies? To answer this question, we propose a model of production in the age of automation that incorporates emission externalities. We derive a threshold condition subject to which the use of industrial robots affects emissions. This model leads to three testable predictions, i) the use of industrial robots causes higher emissions on average, ii) with increasing efficiency of industrial robots, the effect becomes weaker and could turn negative, and iii) in countries in which electricity is predominantly produced using (clean) renewable energy, industrial robot use has the potential of decreasing emissions. Empirically, we find support for the theoretical hypotheses implying that the effect of automation on emissions is non-linear or moderated by other variables. |
| Keywords: | Automation; Robots; Emissions; Climate Change |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wus005:68239986 |
| By: | T. Chamarande (IGE - Institut des Géosciences de l’Environnement - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Fédération OSUG - Observatoire des Sciences de l'Univers de Grenoble - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes, GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); B. Hingray (IGE - Institut des Géosciences de l’Environnement - IRD - Institut de Recherche pour le Développement - INSU - CNRS - Institut national des sciences de l'Univers - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Fédération OSUG - Observatoire des Sciences de l'Univers de Grenoble - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Sandrine Mathy (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | The massive development of mini-grids (MGs) is seen as a promising alternative to the extension of national grids to achieve universal access to electricity. MGs based on solar photovoltaic are often recognized fully consistent with net-zero CO2 emissions objectives. However, if they have low or even no direct emissions from diesel consumption, they embed indirect carbon emissions due to solar panels and batteries manufacturing. Electrification policies, mainly based on the levelized costs of electricity (LCOE), should likely account for the carbon footprints (CFP) of possible electrification strategies. In this work, we assess the CFP of hybrid MGs (solar, battery, diesel) for rural electrification in Africa. We consider a large number of MG configurations for many locations across the continent. For each location, we identify the lowest CFP and LCOE, and estimate their dependency to meteorological and socio-economic factors. Our results show that: (i) the lowest CFP depends on location and is around 200gCO2/kWh; (ii) it can be higher than the CFP of certain African national grids; (iii) the CFP of hybrid MGs can be lower than the CFP of MGs relying only on solar PV; (iv) for most techno-economic and environmental assumptions, moderate LCOE increases allow significant CFP reductions. |
| Keywords: | PV hybrid mini-grids, Rural electrification, Levelized cost of electricity (LCOE), Carbon footprint, Africa |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04721670 |
| By: | Carroll, James; Denny, Eleanor; Lyons, Ronan C.; Petrov, Ivan |
| Abstract: | With buildings accounting for roughly 40 % of energy consumption in the US and Europe, energy efficiency upgrades will be central in meeting climate targets. Using a nationwide controlled field experiment, we find that the inclusion of property-specific energy cost labels within property advertisements increases energy efficiency premiums. We also show that more energy efficient properties sell faster and, for the first time, that energy cost labels shortened time-to-sell. While a major departure from existing property labelling policy, these results suggest that framing property energy efficiency according to their cost implications, rather than in energy units, increases the demand for energy efficiency. |
| Keywords: | energy efficiency; energy policy; field experiment; framing; housing demand; imperfect information |
| JEL: | R21 Q41 Q48 D83 D91 |
| Date: | 2024–11–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125663 |
| By: | Badenhoop, Nikolai; Riedel, Max |
| Abstract: | We examine the EU car labelling regime for CO2 emissions and fuel efficiency under Directive 1999/94/EC and document strongly diverging national labelling methodologies. Our contribution is fourfold. First, we distil the most relevant economic and behavioural research findings on car labelling. Labels effectively help consumers make informed decisions if they are well-designed, comprehensible, and informative about hidden costs. Second, we compare the national car labelling methodologies and find stark inconsistencies, undermining the EU's effort to decarbonise the car sector. Empirically, we find heterogeneous distributions of the national labels if applied to the national and EU car fleets. Third, we assess the EU energy efficiency labelling regime for electric appliances under Regulation (EU) 2017/1369 as a labelling role model. Finally, we propose a standardised EU car label with comparative information in two distinct coloured scales using absolute labelling thresholds for CO2 emissions and fuel or energy efficiency. |
| Keywords: | Car labels, CO2 emissions, Energy efficiency, Fuel economy, Directive 1999/94/EC, Passenger cars, Sustainable transport |
| JEL: | R4 K30 K32 L92 L98 Q48 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:305283 |
| By: | D'Agosti, Natalia; Danza, Facundo |
| Abstract: | Since 2010, the Uruguayan government has fostered the instal lation of solar panels among households and firms to promotesmall-scale renewable electricity production. Under this policy, agents with solar panels are allowed to feed any electricity sur plus into the grid. We study the economic and environmental consequences of this policy. We collect a novel dataset on elec tricity extraction and injection into the grid at a household-firm level for the whole country. First, we find that installing a solarpanel reduces the electricity extracted from the grid. Second, we find that it increases the electricity injected into the grid. Third, we find that it reduces CO2 emissions between 0.35 and 0.03 kg per month and agent. Fourth, we find evidence of a rebound effect: electricity consumption after the solar panel installation increases between 20% and 26%, on average. Lastly, we propose an alternative policy that allows agents to store their electricity surplus in batteries instead of immediately injecting it into the grid. According to our model, the best time to inject electricity into the grid is around 9 PM, when fossil-fuel facilities satisfy most of the electricity demand. We leverage household and firm-level data to study the effect of a net-metering policy on electricity extraction and injection, showing what countries can expect from implementing such a policy. |
| Keywords: | Ambiente, Desarrollo, Energía, |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2164 |
| By: | Suphi Sen; Serhan Sadikoglu; Changjing Ji; Edwin van der Werf |
| Abstract: | We estimate the effect of the staggered adoption of carbon pricing policies across the globe between 1990 and 2017 on per capita CO2 emissions from fossil fuel combustion. Applying recent econometric techniques robust to treatment effect heterogeneity, we find reductions of 8 to 12 percent on average. Our dynamic treatment effect estimations indicate gradual adjustments after implementation, resulting in a 19 to 23 percent decrease after 10 years. These effects were primarily driven by resource substitution rather than improvements in energy efficiency, largely independent of the potential effects of renewable energy policies, and were not driven by short-term responses to carbon prices. These results highlight the role of carbon pricing policies in steering medium-term expectations and complementing the climate policy mix. |
| Keywords: | carbon pricing, cap and trade, emission trading, carbon tax, staggered design, dynamic treatment effects |
| JEL: | Q41 Q48 Q54 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11291 |
| By: | Andrea La Nauze; Lana Friesen; Kai Li Lim; Flavio Menezes; Lionel Page; Thara Philip; Jake Whitehead |
| Abstract: | In a field experiment tracking 390 electric vehicles minute-by-minute, we show that incentives reduce charging by 17%—27% during peak times and increase it by 34% during midday when solar generation is highest. Peak charging decreases at home, while midday charging rises out of the home. Participants shift and reduce charging, drive less, and run batteries lower. We find heterogeneity based on rooftop solar ownership, commuting, and having a fast home charger. These findings suggest electric vehicles can support the shift from fossil fuels to renewable energy and highlight the enabling role of charging infrastructure. |
| Keywords: | electric vehicles, field experiment, renewable energy, rooftop solar, dynamic electricity prices |
| JEL: | Q41 Q42 Q48 R41 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11386 |
| By: | Anthony R. Harding; Juan Moreno-Cruz |
| Abstract: | With the rapid expansion of Artificial Intelligence, there are expectations for a proportional expansion of economic activity due to increased productivity, and with it energy consumption and its associated environmental consequences like carbon dioxide emissions. Here, we combine data on economic activity, with early estimates of likely adoption of AI across occupations and industries, to estimate the increase in energy use and carbon dioxide emissions at the industry level and in aggregate for the US economy. At the industry level, energy use can increase between 0 and 12 PJ per year, while emissions increase between 47 tCO2 and 272 ktCO2. Aggregating across industries in the US economy, this totals an increase in energy consumption of 28 PJ per year, or around 0.03% of energy use per year in the US. We find this translates to an increase in carbon dioxide emissions of 896 ktCO2 per year, or around 0.02% of the CO2 emissions per year in the US. |
| Keywords: | artificial intelligence, energy, climate change |
| JEL: | O44 Q43 Q54 Q55 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11360 |
| By: | Hamza Mjahed |
| Abstract: | The North Sea has been an important energy hub for many European countries for centuries. It is home to many natural resources, from oil and natural gas, to wind and wave energy, making it a powerhouse of energy production. In recent decades, the North Sea has seen significant investment in energy infrastructure and innovation, allowing many of these resources to be harnessed and used to supply energy to much of Europe. Furthermore, the North Sea has become more important for European energy security in the context of the volatility in global energy markets and European efforts to decouple from Russian fossil fuels. The North Sea is thus bound to play a vital role in the future of European energy security, with a large number of projects set to come online in the coming years, providing a significant boost to energy production. |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_09_23 |
| By: | Yves Jégourel |
| Abstract: | La fin des stratégies d’intégration verticale constitue le corollaire naturel de la baisse durable du prix de la quasi-totalité des produits de base observée depuis de nombreux mois. S’il apparait encore prématuré d’affirmer avec précision quelles seront les conséquences de cette déconsolidation dans la chaine de valeur des matières premières, il est cependant probable que le rôle stratégique du négoce physique se renforce. Sous une telle hypothèse, les stratégies industrielles des pays en développement et exportateurs de produits de base pourraient devoir muter et désormais favoriser en priorité l’optimisation des circuits de distribution internationaux et la gestion du risque de prix. |
| Date: | 2015–12 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:none |
| By: | Rim Berahab |
| Abstract: | The energy landscape in 2024 is at a crossroads. Fossil fuels continue to dominate, with prices that are volatile due to geopolitical tensions and shifting demand patterns. However, renewable energy is on the rise thanks to cost declines, policy support, and growing consumer adoption. This Policy Brief examines five significant trends that will shape the energy landscape in 2024. Navigating the complex energy landscape requires careful risk monitoring and prudent policy responses. Key areas to monitor are potential spikes in oil and natural gas prices, and challenges to the expansion of renewable energy. By understanding these trends and proactively managing risks, countries can ensure a more sustainable and secure energy future. |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_05_24 |
| By: | Roxana Dumitrescu; Redouane Silvente; Peter Tankov |
| Abstract: | We study the price impact of storage facilities in electricity markets and analyze the long-term profitability of these facilities in prospective scenarios of energy transition. To this end, we begin by characterizing the optimal operating strategy for a stylized storage system, assuming an arbitrary exogenous price process. Following this, we determine the equilibrium price in a market comprising storage systems (acting as price takers), renewable energy producers, and conventional producers with a defined supply function, all driven by an exogenous demand process. The price process is characterized as a solution to a fully coupled system of forward-backward stochastic differential equations, for which we establish existence and uniqueness under appropriate assumptions. We finally illustrate the impact of storage on intraday electricity prices through numerical examples and show how the revenues of storage agents may evolve in prospective energy transition scenarios from RTE, the French energy electricity network operator, taking into account both the increasing penetration of renewable energies and the self-cannibalization effect of growing storage capacity. We find that both the average revenues and the interquantile ranges increase in all scenarios, highlighting higher expected profits and higher risk for storage assets. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.12495 |
| By: | Hamza Mjahed |
| Abstract: | The North Sea has been an important energy hub for many European countries for centuries. It is home to many natural resources, from oil and natural gas, to wind and wave energy, making it a powerhouse of energy production. In recent decades, the North Sea has seen significant investment in energy infrastructure and innovation, allowing many of these resources to be harnessed and used to supply energy to much of Europe. Furthermore, the North Sea has become more important for European energy security in the context of the volatility in global energy markets and European efforts to decouple from Russian fossil fuels. The North Sea is thus bound to play a vital role in the future of European energy security, with a large number of projects set to come online in the coming years, providing a significant boost to energy production. |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:pb_09_23 |
| By: | McRae, Shaun D; Wolak, Frank A |
| Abstract: | High electricity prices hinder efforts to decarbonize through electrification. In this paper, we demonstrate the inefficiencies of the retail electricity tariffs for both residential and non residential consumers in Colombia. We show the low take up for a 2012 policy in Colombia that reduced electricity prices for industrial users. As an alternative, we propose a novel tariff design that eliminates customer class distinctions, aligns prices with marginal costs, and introduces a fixed charge based on estimated willingness to pay. Using data for the entire population of electricity consumers in Colombia, we illustrate the tariff’s potential to eliminate existing distortions in electricity pricing across customer classes while limiting bill increases for low income households. |
| Keywords: | Energía, |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2266 |
| By: | Joseph E. Aldy |
| Abstract: | The Inflation Reduction Act could deliver more than $1 trillion in tax expenditures and outlays targeting clean energy deployment, but considerable uncertainty characterizes the economic, emissions, energy, and fiscal implications of the law. I review the features of the political system governing implementation, the regulatory system overlaying performance standards, the innovation responding to IRA incentives, and the energy networks in which IRA-supported investments operate to identify the key factors influencing IRA’s outcomes. Drawing from past research and policy experience, I illustrate how these factors could play out and how future program evaluation could reduce uncertainty and inform better climate policy. |
| JEL: | H23 Q48 Q58 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33092 |
| By: | Ajayi, Victor (Energy Policy Research Centre, University of Cambridge); Andrew Burlinson, Andrew (University of Sheffield); Giulietti, Monica (Nottingham University Business School); Waterson, Michael (University of Warwick & CAGE research centre) |
| Abstract: | In April 2022, consumers in Great Britain (GB) witnessed a 54% increase in the energy price cap, as a result of Russia’s invasion of Ukraine on February 24th, which sent wholesale gas prices spiralling across Europe. We leverage high-frequency data collected by the Smart Energy Research Lab, a representative panel containing daily gas and electricity data for around 13, 000 households in Great Britain between January 2021 and December 2023 to investigate the implications. We exploit several datasets linked to the panel data which include time-varying and cross-sectional information. We rely on two price shocks : 1) in October 2021 a wave of energy retail suppliers leaving the industry. At this time over two million consumers on fixed contracts were forced to join a new supplier and pay a variable tariff, and 2) these consumers were exposed to a second price shock caused by the Ukraine-Russia conflict which fed through April 2022’s energy price cap. Exploiting this pseudo-natural experiment, we use a difference-in-difference framework to estimate average treatment effects on this group of consumers and find that they would have consumed an additional 10 percentage points more electricity and 16 percentage points more gas had their prices remained fixed. These estimates are robust to a battery of robustness checks and point towards a significant loss in welfare for consumers on variable tariffs in the early stages of the energy price crisis |
| Keywords: | Difference-in-differences ; energy consumption ; energy crisis JEL Codes: L94 ; E31 ; D12 ; I19 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1523 |
| By: | Frauke Wiese (Europa-Universität Flensburg); Nicolas Taillard (Association Négawatt); Emile Balembois (Association Négawatt, Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], EVS - Environnement, Ville, Société - ENS de Lyon - École normale supérieure de Lyon - Université de Lyon - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris] - UL2 - Université Lumière - Lyon 2 - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées - UJM - Université Jean Monnet - Saint-Étienne - ENTPE - École Nationale des Travaux Publics de l'État - ENSAL - École nationale supérieure d'architecture de Lyon - CNRS - Centre National de la Recherche Scientifique - ALLHiS - Approches Littéraires, Linguistiques et Historiques des Sources - UJM - Université Jean Monnet - Saint-Étienne, FAYOL-ENSMSE - Institut Henri Fayol - Mines Saint-Étienne MSE - École des Mines de Saint-Étienne - IMT - Institut Mines-Télécom [Paris], FAYOL-ENSMSE - Département Génie de l’environnement pour les organisations - Institut Henri Fayol - ENSM ST-ETIENNE - Ecole Nationale Supérieure des Mines de St Etienne); Benjamin Best; Stephane Bourgeois (Association Négawatt); José Campos (ELTE - Eötvös Loránd University); Luisa Cordroch (Europa-Universität Flensburg); Mathilde Djelali (Association Négawatt); Alexandre Gabert (Association Négawatt); Adrien Jacob (Association Négawatt); Elliott Johnson (Sustainability Research Institute, School of Earth and Environment - University of Leeds); Sébastien Meyer (IMMC - Institute of Mechanics, Materials and Civil Engineering [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain); Béla Munkácsy (Department of Environmental and Landscape Geography - ELTE - Eötvös Loránd University); Lorenzo Pagliano (POLIMI - Politecnico di Milano [Milan]); Sylvain Quoilin (Université de Liège); Andrea Roscetti (POLIMI - Politecnico di Milano [Milan]); Johannes Thema (Europa-Universität Flensburg); Paolo Thiran (IMMC - Institute of Mechanics, Materials and Civil Engineering [Louvain] - UCL - Université Catholique de Louvain = Catholic University of Louvain); Adrien Toledano (Association Négawatt); Bendix Vogel (Europa-Universität Flensburg); Carina Zell-Ziegler (TUB - Technical University of Berlin / Technische Universität Berlin); Yves Marignac (Association Négawatt) |
| Abstract: | A detailed assessment of a low energy demand, 1.5 ∘ C compatible pathway is provided for Europe from a bottom-up, country scale modelling perspective. The level of detail enables a clear representation of the potential of sufficiency measures. Results show that by 2050, 50% final energy demand reduction compared to 2019 is possible in Europe, with at least 40% of it attributable to various sufficiency measures across all sectors. This reduction enables a 77% renewable energy share in 2040 and 100% in 2050, with very limited need for imports from outside of Europe and no carbon sequestration technologies. Sufficiency enables increased fairness between countries through the convergence towards a more equitable share of energy service levels. Here we show, that without sufficiency measures, Europe misses the opportunity to transform energy demand leaving considerable pressure on supply side changes combined with unproven carbon removal technologies. |
| Keywords: | Climate-change mitigation, Energy modelling, Energy supply and demand |
| Date: | 2024–10–19 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04747574 |
| By: | Sabrine Emran |
| Abstract: | In the face of oil production cuts by Saudi Arabia and some OPEC members, the energy supply is shrinking again. This is in response to fears of an impending recession, higher inventories in some key countries, and an attempt to keep prices at a certain level. Turning to renewables is now essential to reduce dependence and increase resilience to energy insecurity, while non-renewable energy sources continue to show signs of unpredictability and harmful dependence. Economic outlooks vary from country to country. However, the link between energy demand and economic forecasts is stronger than ever. In this policy brief, we look at recent crude oil supply cuts, recession concerns and the outlook for renewable energy markets. In response to the different economic outlooks, a clear distinction is made between developing and developed countries, resulting in an energy demand that is more likely to come from countries such as China and India than from the major developed countries. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_22-23 |
| By: | Sirini Jeudy-Hugo; Luca Lo Re; Coline Pouille; Heeweon Hyun |
| Abstract: | Under the Paris Agreement, Parties are to put forward their next nationally determined contributions (NDCs) in February 2025. The outcomes of the first global stocktake (GST1) provides key signals to inform this next round of NDCs, including the adoption of economy-wide emission reduction targets, as well as global calls to achieve net-zero emissions in the energy sector by mid-century and halt deforestation and forest degradation by 2030. This paper explores how Parties can take forward these global calls in their next NDCs. Information provided by Parties in their NDCs and biennial transparency reports (BTRs) on their responses to the global energy and forestry calls will be important for assessing collective ambition and progress towards the GST1 mitigation outcomes. Drawing on lessons from experiences, this paper also explores how to gear the next NDCs towards implementation and investment. Underpinning NDCs with more granular information, whether in the NDC or in subsequent documents, establishing robust whole-of-government approaches and inclusive stakeholder engagement processes, can help to meet the needs of different actors, unlock finance and investment, and support the delivery of climate actions. |
| Keywords: | BTRs, Climate change, Deforestation, Global stocktake, NDCs, Paris Agreement, Transparency, UNFCCC |
| JEL: | F53 H87 Q54 Q56 Q58 O44 |
| Date: | 2024–10–29 |
| URL: | https://d.repec.org/n?u=RePEc:oec:envaab:2024/03-en |
| By: | Emanuela Benincasa (Swiss Finance Institute; University of Zurich - Department of Finance); Olimpia Carradori (Swiss Finance Institute - University of Zurich); Miguel A. Ferreira (Nova School of Business and Economics; European Corporate Governance Institute (ECGI); Centre for Economic Policy Research (CEPR)); Emilia Garcia-Appendini (Norges Bank; University of St. Gallen - School of Finance; Swiss Finance Institute) |
| Abstract: | We show that climate transition risks can significantly disrupt supply chain networks. Specifically, suppliers affected by the California cap-and-trade program are more likely to lose customer relationships and less likely to form new ones compared to their competitors unaffected by the program. The effects are more pronounced among suppliers facing high competitive pressure and producing standardized inputs. Additionally, affected suppliers experience declines in revenues, assets, and profitability. This supply chain rewiring induced by uncoordinated climate policies is consistent with carbon leakage, as customers exposed to the program through production networks show an increase in their supply chain emission intensity. |
| Keywords: | Climate finance, Carbon pricing policy, Carbon emissions, Supply chain, Product market competition, Input specificity |
| JEL: | G32 Q54 Q55 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:chf:rpseri:rp2456 |
| By: | Gutiérrez - Meave, Raúl; Núñez, Héctor; Rosellón, Juan |
| Abstract: | This research analyzes the potential economic effects of accelerated electrification and decarbonization in selected Latin American countries. Using an economic equilibrium model, four scenarios were evaluated: 1) a Business-as-Usual (BAU) scenario, 2) a BAU scenario with increased electricity interconnections, 3) a green scenario with an emphasis on higher renewable energy growth rates, and 4) a green scenario integrating both higher energy growth rates and interconnection improvements. We aim to assess the impact of these strategies on significant economic indicators by comparing the optimal solutions of each scenario, and determine the difference in gains. Our approach prioritizes the complexities of the energy sector while underscoring economic factors, enabling the identification of necessary compensatory redistributions. The comparison of these scenarios will provide policymakers and stakeholders with valuable insights into the costs and benefits of transitioning to a more sustainable energy system in Latin America. |
| Keywords: | Economía, |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2252 |
| By: | Ivey, Cesunica; Nguyen, Alexander; Xu, Ruifeng; Hao, Peng; Barth, Matthew |
| Abstract: | Traffic and air pollution pose significant challenges to environmental sustainability in the South Coast Air Basin, particularly in urban areas like Riverside, California, where major highways contribute to high levels of background air pollution. This study investigates the impact of traffic-related air pollutants, specifically NO2 and PM2.5, in Riverside's Innovation Corridor, a six-mile roadway serving key urban centers and logistics activities. Utilizing a low-cost, measurement-based approach over a one yearperiod, the researchers employed gradient-boosted regression trees to model pollutant concentrations based on traffic and meteorological conditions. Preliminary findings indicate that background PM2.5 and relative humidity are crucial drivers for local PM2.5 levels, while NO2 concentrations are influenced by daily traffic patterns. The study confirms that NO2, a primary pollutant, is closely linked to daily activity, whereas PM2.5 is influenced by regional trends and local meteorology. These insights suggest that pollution reduction strategies should focus on NO2 emissions while also considering the complex dynamics of PM2.5. The study highlights the need for further investigation into the sources of NO2 and the effectiveness of proposed traffic interventions in improving local air quality. Future analyses will aim to evaluate the impact of modifications in traffic patterns on pollutantlevels along the corridor. View the NCST Project Webpage |
| Keywords: | Engineering, Physical Sciences and Mathematics, Social and Behavioral Sciences, Traffic, air pollution, vehicle miles traveled, air quality, goods movement |
| Date: | 2022–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt1wb0p4rk |
| By: | Simone M Cuiabano |
| Abstract: | The document presents an innovative analysis of ethanol demand, emphasizing the significant role of spatially differentiated fuel retailers in shaping consumer preferences and fuel-switching behavior. Utilizing a nested logit model and data from Brazilian fuel retailers, the study reveals that ethanol demand is highly responsive to price changes, with relative price elasticity exceeding that of gasoline. Key findings indicate that retailer characteristics, such as branding and location, influence consumer preferences, highlighting the importance of considering spatial differentiation in demand estimation models. The study's results have profound implications for policy-making, suggesting that encouraging the use of ethanol as an alternative energy source can serve as an effective climate change mitigation strategy. The recommendations stress the need for policies that account for consumer price sensitivities and the competitive landscape of fuel retailers. This could enhance the adoption of cleaner fuels and reduce dependency on imported oil, aligning with broader environmental and economic objectives. |
| Keywords: | ethanol; demand estimation; nested logit; fuel retailer; ethanol demand; retailer characteristic; influence consumer preference; Fuel prices; Gasoline; Logit models; Price elasticity; Agricultural prices; West Africa; Europe |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/231 |
| By: | Bonga-Bonga, Lumengo; Kirsten, Frederich |
| Abstract: | This paper adds to the existing body of research on the connection between renewable energy generation and financial market development. It does so by examining this relationship while differentiating between three types of financial market development: access, efficiency, and depth, and by categorizing renewable energy generation into three types: wind, solar, and hydroelectric energy. Additionally, the paper evaluates the mediating role of stock market capitalisation in the relationship between renewable energy and financial market development. Using panel two-stage least squares (2SLS) based on Lewbel's instrumental variable approach, the study concludes that wind energy generation is the most responsive to the various components of financial market development among European countries. The bootstrapping causal mediation analysis shows the significant mediating role of stock market capitalisation, particularly in the impact of financial market development on wind energy generation. These findings offer valuable insights for policymakers seeking to finance renewable energy projects in order to achieve Sustainable Development Goal 13. |
| Keywords: | renewable energy, financial market development, 2SLS, Lewbel, mediation |
| JEL: | C23 Q2 Q43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122461 |
| By: | Rabi Mohtar |
| Abstract: | It is estimated that $1 trillion to $6 trillion per year (up to 2050) needs to be invested globally if the world is to stay below the 2°C global warming ceiling of the Paris Agreement and to meet its adaptation goals. Currently, investments stand at about $630 billion per year, way below the original target. And although great efforts have been made in the climate-finance area, more than 70% of the funds deployed have gone to one sector, renewable energy, followed by the transportation sector. The agriculture sector has been severely underfunded, even though it produces 20% of global greenhouse gas emissions. This leaves the most vulnerable communities at risk as the effects of climate change are already impacting this sector intensely. In this policy brief, four principles are proposed as a foundation when deploying funds into climate-change mitigation and adaptation projects: equity, creativity, impact, and transparency. Climate finance has an enormous potential to make bigger impacts when the right principles are applied. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_20_23 |
| By: | Rim Berahab |
| Abstract: | Les fluctuations que connaissent les marchés de l'énergie depuis le début de la pandémie de la Covid-19 en 2019/2020 se sont prolongées, avec une incertitude sans précédent, sur l'approvisionnement énergétique mondial, qui s'est développée au cours de 2022 à la suite de l'invasion de l'Ukraine par la Russie, dans un contexte d'affaiblissement de la macroéconomie et d'inflation élevée. Alors que certains voyaient en ce contexte un risque de ralentissement de la transition énergétique, d’autres y ont vu une opportunité pour s’affranchir des énergies fossiles et accélérer le développement des technologies propres. Ce Policy Brief explore cinq tendances récentes qui sont susceptibles de façonner la transformation du système énergétique en 2023 et met l’accent sur les enjeux des technologies propres qui seront nécessaires pour accélérer la transition vers un avenir plus vert. |
| Date: | 2023–01 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbecon:pb_04_23 |
| By: | Rim Berahab |
| Abstract: | The Carbon Border Adjustment Mechanism (CBAM) has emerged as an important policy tool in the European Union's (EU) efforts to combat climate change and prevent carbon leakage. By put ting a price on carbon emissions embedded in certain goods imported into the EU, the CBAM has the potential to impact economies worldwide, including Morocco. This policy brief examines recent CBAM developments and assesses their implications for Morocco's economy and climate change efforts. It analyzes the challenges that the Moroccan economy may face, including implications for costs , competitiveness, compliance requirements, supply chain adjustments, and increased risk exposure. The brief also highlights the opportunities available to Morocco, and the importance of implementing targeted policies, strengthening the regulatory framework, promoting capacity-building initiatives, and fostering cooperation to navigate the CBAM transition period effectively . By understanding the complexities of CBAM and adopting proactive strategies, Morocco can position itself to capitalize on the opportunities and overcome the challenges presented by this transformative policy. |
| Date: | 2023–07 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_29_23 |
| By: | Hastreiter, Nikolaus |
| Abstract: | This paper investigates the effectiveness of collective investor engagement in regulating corporate climate action. Empirically, I focus on Climate Action 100+ (CA100+), the world’s largest investor coalition on climate change. To address common measurement issues in previous research, I conduct a multidimensional assessment of companies’ climate action. In particular, I collect new primary data on the ambition of carbon emission reduction targets and use the ClimateBERT model to analyse climate-related disclosure. To isolate the causal impact of CA100+, I examine the selection of the coalition’s focus companies and employ a Difference-in-differences analysis. While the findings suggest that CA100+ has had no effect on companies’ disclosures or reductions in carbon emissions, I observe a significant impact on targets. However, this effect holds only for medium- and long-term targets, not in the short-term, and is exclusively driven by companies potentially selected based on prior investor knowledge. Overall, this study finds limited effectiveness of collective engagement through CA100+. It raises questions about the importance of investor selectivity for engagement success and highlights the risk of companies backloading their decarbonisation efforts. |
| JEL: | Q50 M14 |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125852 |
| By: | Hernandez-Cortes, Danae; Mathes, Sophie |
| Abstract: | This paper studies the employment impacts of renewable energy projects in Brazil. Between 2006 and 2017, Brazil’s solar capacity increased from 0.001 GW to 1.01 GW, and wind capacity increased from 0.233 GW to 12.4 GW. Using detailed employment information from the universe of formal workers in Brazil, we analyze whether the development of renewable energy projects impacts employment in the local municipalities. Solar energy projects appear to have no significant impact on local economic activity. In contrast, we find that when new wind energy projects come online, total employment in a municipality increases by 15.95 percent, and the number of firms in a municipality increases by 14.84 percent. The number of jobs in the electricity sector increases by as much as 74.33 percent, 51.72 percent in the construction sector, and 22.54 in transportation. The employment increases appear to stem from growth of existing firms and growth of new firms. The effects persist and are even larger when we consider only municipalities that have not experienced expansions in their electricity grid. Proxying land lease income with municipal tax revenues, we do not find evidence that the effects are driven by windfall income from land leases. |
| Keywords: | Desarrollo, Energía, Evaluación de impacto, |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2201 |
| By: | Arnita Rishanty (Bank Indonesia); Donni Fajar Anugrah (Bank Indonesia); Dian Rahmawati (Bank Indonesia) |
| Abstract: | This research is to explore socio-economic impact of energy transitions of coal phasing out in Indonesia, a rich resource developing country. First, we measure and analyze the potential transition risks faced in the future particularly from the decline of the coal industry using granular mining companies’ data in Indonesia. Second, we explore qualitatively the preparedness of stakeholders including workers in facing the coal phase-out to achieve just transition. This study finds that assuming current policies surrounding domestic coal pricing in Indonesia persist, fewer coal mines will be economically viable in a global transition and will be forced to shut down. The financial consequences will be borne by the government, coal mining companies and the coal supply chain. This study also finds that job losses in the coal mining sector could be severe. This signifies the role of banks (hence, central bank) to finance local economic transitions and to support the regional sectoral rebalancing (a shift from coal-producing communities to a more inclusive sector such as service or trade sectors). |
| Keywords: | Product Just Transition, Transition Risk, Socioeconomic Impact, Indonesia |
| JEL: | Q43 J68 L72 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp042023 |
| By: | Lukas Brunninger (Department of Economics, Vienna University of Economics and Business); Markus Dertwinkel-Kalt (University of Münster and Max Planck Institute for Collective Goods); Klaus Gugler (Department of Economics, Vienna University of Economics and Business); Sven Heim (Mines Paris – PSL, ZEW – Leibniz Centre for European Economic Research Mannheim and CEPR) |
| Abstract: | In the aftermath of the Russian invasion in Ukraine and rising gas prices, the “gas Price brake” was implemented in Germany. We employ a difference-in-differences Approach and analyze data on offered gas contracts from two countries with comparable gas markets, where one country (Germany) has implemented the gas price brake and the other (Austria) has not. Our findings support the theoretical prediction, indicating that the gas price brake led to an increase in total annual gas costs in Germany. This increase is entirely attributable to incumbents increasing counterfactual gas prices by up to 90%. Non-incumbents do not ’milk‘ the brake. |
| Keywords: | Energy Policy, Gas Price Brake, Moral Hazard, Incumbents |
| JEL: | D04 Q40 Q48 L50 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wiwwuw:wuwp372 |
| By: | Prachi Srivastava; Nicholas Bloom; Philip Bunn; Paul Mizen; Gregory Thwaites; Ivan Yotzov |
| Abstract: | We analyse the importance of climate-related investment using a large economy-wide survey of UK firms. Over half of firms expect climate change to have a positive impact on their investment in the medium term, with around a quarter expecting a large impact of over 10%. Around two-thirds of these investments are expected to be in addition to normal capital expenditure, with some firms investing less elsewhere. These investments will be driven by larger firms as well as those in more energy-intensive sectors. Climate investments are expected mainly in switching to green energy sources and improving energy efficiency, and firms expect to finance these mainly using internal cash reserves. Overall, although firms are expecting to invest more resources in adapting to climate change, under reasonable assumptions, these investments are still not sufficient to meet the estimated targets implied by the UK Net Zero Pathway. |
| JEL: | C83 D22 D25 D84 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33081 |
| By: | Julien Gourdon (AFD - Agence française de développement, CERDI - Centre d'Études et de Recherches sur le Développement International - IRD - Institut de Recherche pour le Développement - CNRS - Centre National de la Recherche Scientifique - UCA - Université Clermont Auvergne, FERDI - Fondation pour les Etudes et Recherches sur le Développement International); Hugo Lapeyronie (UP1 - Université Paris 1 Panthéon-Sorbonne) |
| Abstract: | Despite its unsustainable nature, mining is essential to the energy transition and the development of renewable energies. This report calls for a clear awareness of the issues related to critical minerals, avoiding indifference to the challenges of the energy transition and a naïve view of the risks of the mining sector |
| Abstract: | L'activité minière, malgré son caractère non durable, est essentielle pour la transition énergétique et le développement des énergies renouvelables. Ce rapport appelle à une prise de conscience claire des enjeux liés aux minerais critiques, en évitant l'indifférence face aux défis de la transition énergétique et une vision naïve des risques du secteur minier |
| Date: | 2024–09–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04741999 |
| By: | Rim Berahab |
| Abstract: | Carbon pricing mechanisms are central to mitigating climate change. These mechanisms work by internalizing the costs associated with greenhouse gas emissions, thus encouraging emissions reductions and promoting technological progress in favor of sustainable alternatives. However, the implementation of carbon pricing mechanisms faces numerous complexities and challenges, especially in developing countries, given the potentially regressive impact of carbon pricing on low-income groups, and the general lack of socio- political support. This policy paper offers a comparative review of two market-based carbon pricing strategies—carbon taxes and emissions trading systems (ETS)—to shed light on their effectiveness, implementation, and capacity to generate revenue. It also argues that carbon pricing should be integrated into a comprehensive policy framework that addresses both national priorities and international equity considerations, in order to effectively address global climate change. The effectiveness of these policies depends largely on their design and adaptation to the specific political and economic contexts in which they are implemented. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaeco:pp_07-24 |
| By: | Brauch, Martin Dietrich; Mayr, Stefan; Luthin, Carl Frederick |
| Abstract: | After terminating intra-EU bilateral investment treaties (BITs) and withdrawing from the Energy Charter Treaty, the EU and its member states should terminate BITs with extra-EU partners. Extra-EU BITs risk undermining the autonomy of EU law, hinder EU energy and climate goals, and fail to establish balanced sustainable investment partnerships. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:colfdi:305243 |
| By: | Cartuyvels, Jacques (Université catholique de Louvain, LIDAM/CORE, Belgium); Bertrand, Gilles (ACER); Papavasiliou, Anthony (NTUA) |
| Abstract: | This paper provides a framework for analyzing the interaction of imbalance settlement with the clearing of real-time energy and reserve markets. We characterize the optimal strategies of price-taking flexibility providers that can participate in sequential capacity auctions for automatic and manual frequency restoration reserves, followed by an auction that is conducted by the system operator for activating balancing energy. We establish equilibria based on three market features: (i) reserve demand curves, (ii) the activation strategy implemented by the system operator, and (iii) the imbalance settlement scheme. The optimal activation strategy is derived and the effect of the imbalance pricing scheme on bidding incentives, cost efficiency, and reserve prices is discussed. |
| Keywords: | Electricity Markets Design ; Balancing Markets ; Multi-Product Markets ; Reserve |
| Date: | 2024–05–13 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2024007 |
| By: | Savin, Ivan; Mundt, Philipp; Bellanca, Margherita |
| Abstract: | Prior research produced contradicting evidence regarding the role of international influence in the diffusion of climate policies. To unravel this puzzle, we examine various policy instruments adopted by G20 countries, demonstrating that peer pressure stimulates convergence in the number of new policies adopted but divergence in their stringency. This suggests that policymakers emulate the appearance of their peers but not the rigor of regulation, creating opportunities for carbon leakage. |
| Keywords: | climate change, market instruments, policy adoption, variance decomposition, spatial model |
| JEL: | C21 F18 F42 F64 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bamber:305288 |
| By: | Ou, Yunbei; Bailey, Nick (University of Glasgow); McArthur, David Philip; Zhao, Qunshan |
| Abstract: | Reduction in energy demand and decarbonisation of energy supply is crucial to achieve overall goals for net-zero by 2050, underscoring the importance of housing energy efficiency improvement in the housing sector. While Energy Performance Certificates (EPCs) in the EU are important tools to encourage investment in energy efficiency through market incentives, their effectiveness remains in question. This review aims to summarise the European literature in English on the price premium of residential EPCs. The objectives are to summarise research scope and scale, methodological approaches and limitations, and synthesise price premium. Adopting a scoping review approach with digital databases and artificial intelligence tools for literature searching, 68 studies and 111 models are included covering studies from 2011 to 2024. Findings show that studies are mainly concentrated in those parts of Europe where EPC data are openly available, and that the publication pace is increasing in recent years. With hedonic models being the dominant approach, major limitations found in this field include property-level data availability and omitted variable bias (OVB), rendering difficulties in isolating the impact of energy efficiency. Results synthesis shows a positive price premium for energy-efficient homes, as well as variation between some submarkets. It suggests future research leverage new forms of data and methods to address the OVB, as well as exploring submarket studies and studies on wider housing market impact. To realise a sustainable transition, policymakers should support property-level data infrastructure, strengthen the implementation and harmonisation of the EPC system, and tailor energy retrofit policies for different submarkets. |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:bm9xk |
| 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. |
| Keywords: | electricity, time-of-use pricing, critical- peak pricing, real-time pricing, efficiency |
| JEL: | L94 L97 Q41 Q48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11355 |
| By: | Jonathan Colmer; Suvy Qin; John Voorheis; Reed Walker |
| Abstract: | This paper explores the relationships between air pollution, income, wealth, and race by combining administrative data from U.S. tax returns between 1979–2016, various measures of air pollution, and sociodemographic information from linked survey and administrative data. In the first year of our data, the relationship between income and ambient pollution levels nationally is approximately zero for both non-Hispanic White and Black individuals. However, at every single percentile of the national income distribution, Black individuals are exposed to, on average, higher levels of pollution than White individuals. By 2016, the relationship between income and air pollution had steepened, primarily for Black individuals, driven by changes in where rich and poor Black individuals live. We utilize quasi-random shocks to income to examine the causal effect of changes in income and wealth on pollution exposure over a five year horizon, finding that these income–pollution elasticities map closely to the values implied by our descriptive patterns. We calculate that Black-White differences in income can explain ~10 percent of the observed gap in air pollution levels in 2016. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-57 |
| By: | Miguel Vazquez; Otaviano Canuto |
| Abstract: | Low-carbon hydrogen is a potential contributor to the goals defined in the Paris Agreement, i.e. limiting the increase in the global average temperature to 1.5°C above pre-industrial levels. The transformation of hydrogen production is a part of this effort, as current production methods in the hydrogen industry are carbon-intensive. To achieve net-zero scenarios, hydrogen production and consumption will need to change. Creating a pipeline of projects plays a central role in driving overall costs down. However, notwithstanding the impressive targets and project announcements that have been made, few low-carbon hydrogen projects have reached the final investment decision stage. It is necessary to design a set of policy tools to promote low-carbon hydrogen investment. To that end, we assess the matching process between the potential supply of capital and the demand for capital associated with projects. This paper looks at the problem from the point of view of financial closure of those projects. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaeco:pb_09-24 |
| By: | Panayotis G. Papaioannou; George P. Papaioannou; George Evangelidis; George Gavalakis |
| Abstract: | We investigate the impact of several critical events associated with the Russo Ukrainian war, started officially on 24 February 2022 with the Russian invasion of Ukraine, on ten European electricity markets, two natural gas markets (the European reference trading hub TTF and N.Y. NGNMX market) and how these markets interact to each other and with USDRUB exchange rate, a financial market. We analyze the reactions of these markets, manifested as breakpoints attributed to these critical events, and their interaction, by using a set of three tools that can shed light on different aspects of this complex situation. We combine the concepts of market efficiency, measured by quantifying the Efficient market hypothesis (EMH) via rolling Hurst exponent, with structural breakpoints occurred in the time series of gas, electricity and financial markets, the detection of which is possible by using a Bayesian ensemble approach, the Bayesian Estimator of Abrupt change, Seasonal change and Trend (BEAST), a powerful tool that can effectively detect structural breakpoints, trends, seasonalities and sudden abrupt changes in time series. The results show that the analyzed markets have exhibited different modes of reactions to the critical events, both in respect of number, nature, and time of occurrence (leading, lagging, concurrent with dates of critical events) of breakpoints as well as of the dynamic behavior of their trend components. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.07224 |
| By: | Batsukh, Daginnas; Tao, Jill Leslie; Puntsagnamjil, Mend-Amgalan |
| Abstract: | This research, a collaborative effort, aims to bridge the gap between governance recommendations at the international level for Non-Governmental Organizations (NGOs) and local practice (local perspectives). It explores local stakeholders’ environmental concerns through demographic attributes, including gender, education, and generational cohort. Stakeholders' knowledge, attitudes, and behaviors regarding environmental concerns were assessed within the context of the local mid-term restoration program, Green Darkhan-2030, in Darkhan City, Mongolia. 266 participants from the "Green Darkhan-2030 forum, " who are considered key stakeholders of the local restoration program, completed our survey. To ensure the reliability of the survey findings, interviews were conducted with 16 stakeholder representatives, including residents, government officials, NGOs, research and training organizations, and international organizations. The data were categorized into five groups using 24 indicator statements: environmental policy knowledge, climate change awareness, attitudes on environmental pollution, land degradation awareness, and sustainability practices. We saw variations in environmental concern across different generations, including Gen Z, Millennials, Gen X, and Baby Boomers, with young Millennials aged 27 to 35 demonstrating significantly higher levels of environmental concern. The research findings also provide valuable insights into the impact of gender differences on pollution and degradation concerns. While education significantly influences environmental concerns, we found that it had a limited impact on climate change awareness, urban greening, and environmental policy knowledge. These research findings have since been incorporated into the Darkhan City midterm restoration program, ensuring that the perspectives and insights of stakeholders will help to shape future efforts. |
| Date: | 2024–10–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:eux56 |
| By: | Hafez Ghanem |
| Abstract: | Humanity is losing the climate battle, and existing international institutions are not delivering on climate change. Hence, there is a need for a new international institution that would be a repository for global knowledge on climate change, and would advise governments on climate policies, develop green projects across the Global South, mobilize financing for those projects, and support project implementation. The proposed Green Bank would be different from existing multilateral development banks: (1) it would include private shareholders as well as governments; (2) voting rights would be organized so that countries of the Global South would have the same voice as countries of the Global North and private shareholders; and (3) it would only finance green projects which could be national, regional, or global. The Green Bank would primarily support private green investments through equity contributions, loans, and guarantees. It could also support public investments by using grants to buy-down the interest on other multilateral development bank loans that finance projects that support adaptation to climate change. The Loss and Damage Fund agreed at COP27 could be the source of those grants. This proposal builds on the Bridgetown Initiative, with the aim of mobilizing private funding, in addition to the public trust fund that the initiative proposes. The Green Bank would partner with other institutions and complement the work of existing multilateral development banks, and of specialized funds. |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_06-23 |
| By: | Qu, Chunzi (Dept. of Business and Management Science, Norwegian School of Economics); Bang, Rasmus Noss (SNF - Centre for Applied Research at NHH) |
| Abstract: | This paper presents a comprehensive survey of recent literature on European energy system modeling and analysis with special focus on grid development. Spanning the years from 2013 to 2023, we analyze 59 selected articles, organizing them by geographical scope, grid expansion strategies, research focus, and methodology. Additionally, we provide an overview of established and recurring frameworks, including ELMOD, EMPIRE, AnyMOD, LIMES, TIMES, FlexPlan, PyPSA, REMix, and Balmorel. Further, we elaborate on the recent trends in research and modeling. Based on our observations, we propose avenues for future research. For instance, considering recent changes in the geopolitical environment, we suggest shifting the geographical research focus from the North Sea region to the Central and Eastern European regions. Other suggestions include investigating grid development under imperfect market competition, merging the study of grid development with sector coupling, and increasing the focus on blue hydrogen, which appear to not receive much focus, as opposed to green hydrogen. Overall, this work may serve as a useful resource for newcomers to grid-related research and a practical guide for seasoned researchers in the field. |
| Keywords: | Grid expansion; Optimization; Model; Renewable energy; Development; Europe |
| JEL: | Q40 Q50 |
| Date: | 2024–10–31 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhhfms:2024_011 |
| By: | Te Li; Mengze Zhang; Yan Zhou |
| Abstract: | Against the backdrop of increasingly severe global environmental changes, accurately predicting and meeting renewable energy demands has become a key challenge for sustainable business development. Traditional energy demand forecasting methods often struggle with complex data processing and low prediction accuracy. To address these issues, this paper introduces a novel approach that combines deep learning techniques with environmental decision support systems. The model integrates advanced deep learning techniques, including LSTM and Transformer, and PSO algorithm for parameter optimization, significantly enhancing predictive performance and practical applicability. Results show that our model achieves substantial improvements across various metrics, including a 30% reduction in MAE, a 20% decrease in MAPE, a 25% drop in RMSE, and a 35% decline in MSE. These results validate the model's effectiveness and reliability in renewable energy demand forecasting. This research provides valuable insights for applying deep learning in environmental decision support systems. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.15286 |
| By: | Ornella Tarola (DISSE, University of Rome La Sapienza, Rome, Italy); Emmanuelle Taugourdeau (CNRS, CREST, Palaiseau, France) |
| Abstract: | In light of the ongoing debate on Common But Differentiated Responsibilities (CBDR), we wonder whether it is worthwile for industrialized countries to take the lead in reducing emissions, rather than acting simultaneously with less advanced countries. To do this, we compare national payoffs and global emissions in each situation. We also examine whether industrial leakage is an inevitable outcome of asymmetric policies with differentiated abatement responsibilities and, if so, whether unambigously hurts the more industrialized countries. We show that leadership can improve payoffs while reducing global emissions, even though these goals appear to be at odds. |
| Keywords: | Tax Competition, Capital Integration, Global Pollution, Environmental agreements |
| JEL: | H2 R3 R5 Q5 |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:crs:wpaper:2024-11 |
| By: | Trung V. Vu |
| Abstract: | This paper establishes a statistically and economically significant cross-country relationship between national responses to climate change and genetic distance, which is a proxy for countries’ dissimilarities in cultures, ancestry, and historical legacies associated with long-term exposure to divergent historical trajectories. It finds that countries that are genetically distant to the world-leading nation-state of climate change mitigation tend to experience barriers to the cross-border diffusion of climate change policies and hence exhibit worse responses to climate change. A potential explanation is that climate change polices are more likely to spread between closely related countries with more similar preferences for the provision of the public goods of environmental and climate protection. The findings imply that strengthening climate change mitigation requires overcoming obstacles to international policy diffusion. |
| Keywords: | genetic distance, long-term relatedness, climate change, policy diffusion |
| JEL: | O11 O13 O33 Q54 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2024-66 |
| By: | Gregor Schwerhoff; Mouhamadou Sy |
| Abstract: | The 2023 United Nations Climate Change Conference reinforced already existing pressure to transition away from fossil fuels, in particular for the most polluting source, coal. We use a comprehensive dataset on bank loans for coal projects to shed light on which type of banks continue to finance coal and how coal phase-out commitments affect coal financing. We find that coal financing is becoming increasingly concentrated, partly in banks with a very high coal exposure. We also find that many coal loans have maturities much shorter than the remaining lifetime of coal assets, thus exposing equity holders of coal assets to the risk of a more difficult loan rollover. An econometric analysis shows that countries with a strong commitment to coal phase-out, fixed in national law for example, receive less coal financing. Using an instrumental variable, we identify this effect as causal. |
| Keywords: | Coal; climate change; stranded assets; coal; divestment; United Nations climate change conference; Coal financing; phase-out commitment; coal financing; financing to the coal sector; Non-renewable resources; Financial sector development; Climate policy; Foreign direct investment; Asia and Pacific; Global; Europe; Middle East; Sub-Saharan Africa |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/228 |
| By: | Afaf Zarkik |
| Abstract: | This year, the Conference of the Parties (COP27) will be held in in Sharm el-Sheikh, Egypt. On the outset of this auspicious occasion, it is befitting to reflect upon contemporary climate adaptation and mitigation policies, from a southern and African point of view. Indeed, climate change is one of the stickiest policy problems of the 21st century, because it is inherently a global and multidimensional problem entailing a bundle of policy features. Following the consecutives shocks to the global economy caused by fossil fuels, the timing has never been better to melt the polarization around climate change politics and propose innovative solutions to surf the uncertainty and complexity of this intractable policy problem. |
| Date: | 2022–11 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_63-22 |
| By: | Andres, Pia |
| Abstract: | Low cost solar energy is key to enabling the transition away from fossil fuels. Despite this, the European Union followed the United States’ example in imposing anti-dumping tariffs on solar panel imports from China in 2013, arguing that Chinese panels were unfairly subsidised and harmed its domestic industry. This paper examines the effects of Chinese import competition on firm-level innovation in solar photovoltaic technology by European firms using a sample of 10, 137 firms in 15 EU countries over the period 1999–2020. I show that firms which were exposed to higher import competition innovated more if they had a relatively small existing stock of innovation, but less if their historical knowledge stock fell within the top 10th percentile of firms in the sample. This suggests that newer firms were more able to respond to increased competition by innovating, while firms with a large historical stock of innovation may have been locked into old technological paradigms. As firms with a smaller knowledge stock tended to innovate more overall, trade with China appears to have been beneficial in encouraging innovation among the most innovative firms. However, I also find evidence that import competition increased the probability of exit among firms in the sample. |
| JEL: | R14 J01 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125249 |
| By: | Sarah Spycher |
| Abstract: | This paper examines the role of domestic elections and political polarisation in shaping international environmental agreements and how electoral dynamics may explain the limited success of current climate cooperation. I focus on two key factors: the impact of domestic electoral pressure on international policy decisions and the mismatch between short election cycles and long-term treaty commitments. Using a 4-stage game modelling a bilateral environmental agreement, I analyse how incumbents strategically balance policy preferences with reelection prospects. Results show that while a green incumbent is often forced to temper their ambitions, a brown incumbent faces fewer electoral constraints, explaining why stringent policies are harder to achieve. Nonetheless, electoral pressure can moderate policies, producing outcomes more aligned with the preferences of the median voter. Finally, I discuss how political polarisation, particularly in two party systems, adds complexity to international cooperation on global public goods. |
| JEL: | Q58 C72 D62 H41 P16 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:bol:bodewp:wp1196 |
| By: | Jorge Miranda-Pinto; Mr. Andrea Pescatori; Martin Stuermer; Xueliang Wang |
| Abstract: | We examine the role of metals as economic inputs by using a production network model, calibrated for various countries using input-output (I-O) tables. Empirically, we employ local projections to study how metal shocks influence inflation, testing country-level heterogeneity in the sensitivity to these shocks. Our findings indicate that metals price shocks have significant and persistent effects on core and headline inflation, with particularly pronounced effects on countries that are highly exposed to metals in their production networks. This is in contrasts to oil supply shocks, which predominantly affect headline inflation. A shift of the global economy towards a higher relative metals intensity due to the energy transition could lead to commodity price shocks increasingly influencing core rather than headline inflation. This could make commodity price shocks less visible on impact but more persistent. Central banks should consider this shift when assessing inflation dynamics and risks. |
| Keywords: | International macroeconomics; inflation; metals; production networks; supply shocks.; inflation dynamics; metal shock; metals price shock; production network model; price shock; core CPI inflation; GDP deflator; Metal prices; Supply shocks; Global |
| Date: | 2024–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/215 |
| By: | Bénédicte Coestier; Mathieu Bernard; Fabienne Llense; Maxime Lucet |
| Abstract: | During the 2010s, mandatory disclosure of extra-financial information in France has been encouraged by five major laws passed to reinforce corporate social, environmental and climate responsibility of systemic actors, key to the transition process to a low-carbon, circular and sustainable economy. Whether these laws are paper tigers is of the utmost importance in understanding, notably, how firms disclose whendisclosure is mandatory. Considering laws as linguistic formulations and their meanings, we provide a qualitative analysis of Universal Reporting Documents of some of the largest publicly traded French companies (CAC40). We demonstrate that this intense regulation period has fostered a common language, instilling an environmental and climate reporting culture. In addition, based on a variety of accountability profiles - responsiveness-oriented, controllabillity-oriented, and out-of-step firms -, we highlight diverse dynamics as to the appropriation of the successive laws, along with private and institutional standards. |
| Keywords: | Mandatory disclosure, Accountability, Textual analysis, Environment, Climate, Law analysis |
| JEL: | C43 C81 C88 D83 K20 Q56 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:drm:wpaper:2024-32 |
| By: | Mariza Montes de Oca Leon; Achim Hagen; Franziska Holz |
| Abstract: | We study the impact of fossil fuel subsidy removal on presidential popularity using difference-indifference approaches and a stylized theoretical model. Analyzing macro level data for two subsidy removal events in Mexico and Bolivia in the early 2010s, we find evidence of a negative impact on presidential approval. Our theoretical probabilistic voting model predicts that the decline in popularity is driven by high income groups if subsidies are regressive, and that lack of trust in the government lowers popularity of the removal in all income groups. We confirm these predictions using micro level data for the Mexican subsidy removal event. |
| Keywords: | Political economy; Fossil fuels; Subsidy removal |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/230 |
| By: | González Ayestarán, Rodrigo; Garcia Fronti, Javier Ignacio |
| Abstract: | This study delves into the intricate world of risk management at YPF S.A., Argentina's premier energy company, spanning the period from 2007 to 2019. We begin by examining the dynamic landscape of the Argentine oil market and YPF's pivotal role within it. Subsequently, we dissect YPF's initial risk management framework in 2007, tracing its evolution over the subsequent years. Key components such as the Risk and Sustainability Committee, the Global Risk Management Policy and Regulations, and the Risk Management are explored. The study culminates in a detailed analysis of YPF's financial risk management policies, with a particular focus on the strategic utilization of derivative financial instruments. |
| Keywords: | Risk Management, Financial Risks, Oil Market |
| JEL: | M11 |
| Date: | 2024–10–29 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122540 |
| By: | Otaviano Canuto |
| Abstract: | The global economic environment has changed as the U.S.—and to a less confrontational degree, the European Union—have clearly established a context of technological rivalry with China. Hindering China’s progress in the sophistication of semiconductor production has become a centerpiece of current U.S. foreign policy. While the U.S. is clearly winning the semiconductor war, the picture is different when it comes to clean-energy technology. Both technology wars overlap with access to and refinement of critical raw materials (CRM), which are key upstream components of the corresponding value chains, encompassing mineral-rich emerging markets and developing economies. The way in which the U.S. and the European Union approach the goal of self-sufficiency, as well as access to and refinement of CRMs, will make a big difference to their stakes in the technology wars. |
| Date: | 2023–11 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaeco:pb_41-23 |
| By: | Mounia Boucetta |
| Abstract: | The green hydrogen market 1 is poised for major upheaval in the years to come as new players in the energy transition emerge. This market, however, still depends on the development of demand, the reduction of production, transport and storage costs, the development of truly competitive supply chains and the establishment of and appropriate legal and regulatory framework. Despite the many challenges facing this sector, a number of countries have begun to position themselves as importers and/or exporters to capitalize on this new dynamic, with significant implications for industrial, logistical and technological investment, as well as diplomatic and geopolitical influence. Africa has significant advantages in terms of renewable resources at competitive prices and proximity to European markets, which depend on hydrogen to replace fossil fuels in sectors that are difficult to decarbonize, including steel, chemicals and transportation. But to translate these assets into real, viable, wealth-creating opportunities, African countries targeting the export market will need to make the right choices as stakeholders in this transformation, with respect to business models, technology and regional integration. |
| Date: | 2023–01 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_01-23 |
| By: | Francis Perrin |
| Abstract: | À l’approche du Sommet africain du climat (Africa Climate Summit), qui se tiendra à Nairobi du 4 au 6 septembre 2023, de très nombreuses organisations non gouvernementales (ONG) ont écrit au président du Kenya, William Ruto, pour lui faire part de leurs inquiétudes concernant l’ordre du jour de ce sommet. Selon ces ONG, les intérêts des entreprises et des pays occidentaux pourraient prendre le pas sur ceux de l’Afrique. Les vraies priorités sont notamment d’éliminer progressivement les énergies fossiles et d’investir dans les énergies renouvelables et il est nécessaire que l’ordre du jour soit revu et modifié en vue de refléter les priorités africaines dans la lutte contre le changement climatique, a expliqué cette coalition d’environ 300 ONG. |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_33-23 |
| By: | Mercadal, Ignacia |
| Abstract: | La transición hacia una matriz energética libre de emisiones de gases invernadero presenta múltiples desafíos desde el punto regulatorio. Primero, será necesario proveer los incentivos para que haya capacidad de generación y transmisión suficiente para mantener un sistema confiable, lo que se hace más difícil debido a que la intermitencia de las tecnologías renovables aumenta la volatilidad de la generación y la hace más difícil predecir. Para esto, también es importante proveer incentivos para que el sistema opere de manera eficiente, para lo cual es necesario que los precios a los que se transan los distintos servicios reflejen el costo de producirlos. En el artículo se discuten los desafíos en estas dos líneas, y finalmente se discute brevemente el caso de algunos países en su transición energética. |
| Keywords: | Energía, Productividad, Desarrollo, |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2254 |
| By: | Francis Perrin |
| Abstract: | À la fin de la COP28, qui s’est tenue à Doubaï (E mirats arabes unis) du 30 novembre au 13 décembre 2023, les E tats qui ont signé et ratifié la Convention-cadre des Nations Unies sur les changements climatiques (CCNUCC) ont adopté par consensus le ‘‘ Global Stocktake’’ qui prévoit notamment que le monde doit engager une transition qui l’éloignera des énergies fossiles ( ‘‘ transitioning away from fossil fuels’’) de façon ‘‘juste, ordonnée et équitable’’ (‘‘in a just, ordered and equitable manner’’). Un peu moins de 200 E tats sont donc en théorie tenus d’aller dans le sens de ce texte qui fait d’ailleurs déjà l’objet de plusieurs interprétations. De nombreux pays ont estimé qu’il s’agissait du ‘‘début de la fin des énergies fossiles’’, une conclusion qui nous semble un peu hâtive. Au-delà de ces diverses interprétations, revenons sur l’attitude des pays qui ont beaucoup travaillé pour obtenir l’inscription de la phrase citée ci-dessus dans le texte final de la COP28 et qui se sont félicités de ce résultat en estimant que cette COP représentait un tournant majeur. Il y en a beaucoup et nous ne pourrons pas être exhaustifs dans le format de cette note. Mais les exemples que nous avons sélectionnés sont très représentatifs. |
| Date: | 2023–12 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_47-23 |
| By: | Tornarolli, Leopoldo; Puig, Jorge |
| Abstract: | Este trabajo estima el acceso de los hogares latinoamericanos a distintas fuentes de energía (modernas y no modernas), así también como el gasto asociado a su consumo. En particular, se estudia cómo difiere el acceso a lo largo de la distribución del ingreso, entre hogares residiendo en áreas urbanas y rurales y entre hogares localizados en distintas regiones de los respectivos países. En la medida de lo posible se presenta información para comienzos de siglo, comienzos de los 2010s y la información más reciente. Los resultados obtenidos indican que la región ha logrado avanzar bastante en la universalización del acceso a electricidad residencial, pero muestran que existe un largo camino a recorrer para garantizar el acceso a gas de red y gas licuado de petróleo. Asimismo, la evidencia presentada también señala que existen importantes diferencias, tanto entre países como al interior de ellos, en el acceso y utilización de las distintas fuentes de energía. |
| Keywords: | Energía, |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2253 |
| By: | Peñaloza-Pacheco, Leonardo; Triantafyllou, Vaios; Martínez, Gonzalo |
| Abstract: | In this paper, we analyze the local environmental and economic impacts of lithium extraction in the Atacama Salt Flat (ASF) inChile. We use satellite data to estimate the effects on vegetation at a resolution of 30m × 30m as well as on the local human populations at a resolution of 100m × 100m near the ASF. We compare changes over time in NDVI and human settlements and show how they are affected by exposure to lithium extraction. Our estimates suggest that an increase of 1 standard deviation in our measure of exposure to lithium extraction reduced vegetation in nearby areas by 0.09 standard deviations, and specifically inhuman settlements by 0.22 standard deviations. Also, human populations in the local villages were reduced by 0.04 standard deviations for 1 standard deviation closer to the ASF. Further, we show that the negative effect on NDVI was greater for thoselocations with higher levels of vegetation at baseline. |
| Keywords: | Ambiente, Cambio climático, Desarrollo, Evaluación de impacto, Recursos naturales, |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2173 |
| By: | Nie, Rong (Dalian University of Technology & University of Warwick); Song, Jinbo (Dalian University of Technology); Carneiro, Juliana (University of Warwick) |
| Abstract: | This study examines the impact of emissions data disclosure on alleviating NIMBYism (Not In My Backyard) concerns surrounding Waste-to-Energy (WtE) incineration plants. Leveraging China’s 2017 “Installing, Erecting, and Networking” (IEN) policy as a quasi-natural experiment, we employ a difference-in-differences (DID) approach to analyze over 35, 000 housing transactions near 13 plants. Results indicate that the IEN policy attenuates the housing price gradient by 30.43%, equivalent to 38% of an urban Chinese resident’s annual disposable income. This robust evidence highlights how transparency policies can enhance public trust and thus promote more sustainable urban development. |
| Keywords: | information disclosure ; incineration ; NIMBYism concerns ; housing price gradient JEL Codes: Q28 ; Q58 ; R31 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:wrk:warwec:1527 |
| By: | Sandoval, Héctor; Hancevic, Pedro; Bejarano, Hernán |
| Abstract: | We conducted an audit experiment in which fictional households requested quotes for the purchase, installation, and interconnection of solar photovoltaic systems in four cities across Mexico. This allowed us to identify whether there was opportunistic behavior among local sellers and to quantify the extent of discrimination based on characteristics of residential users, such as gender, socioeconomic status, product knowledge, and access to external financing sources. The main findings indicate that women and customers with higher socioeconomic status not only face price discrimination but are also offered oversized systems. There is no evidence of such practices towards customers with prior product information or those who have secured external financing for the purchase. |
| Keywords: | Energía, Equidad e inclusión social, Finanzas, Integración, |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:dbl:dblwop:2186 |