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on Energy Economics |
| By: | Gregory Casey; Yang Gao; Gregory P. Casey |
| Abstract: | We study the effectiveness of climate change mitigation policies in reducing carbon emissions, focusing on the channel of economy-wide energy efficiency. Using U.S. data, we estimate impulse response functions (IRFs) that characterize how energy efficiency responds to energy price shocks. Standard climate-economy models cannot replicate the slow transition dynamics observed in the data. We build a tractable model that nests the existing literature and can closely replicate the empirical IRFs. The slow dynamics in our model imply that carbon taxes reduce cumulative emissions less than predicted by standard models and that clean energy subsidies reduce cumulative emissions more than predicted by standard models. |
| Keywords: | climate change, climate policy, energy efficiency |
| JEL: | E24 O33 O44 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11303 |
| By: | Lubos Pastor; Robert F. Stambaugh; Lucian A. Taylor |
| Abstract: | We quantify the U.S. corporate sector's carbon externality by computing the sector's “carbon burden”—the present value of social costs of its future carbon emissions. Our baseline estimate of the carbon burden is 131% of total corporate equity value. Among individual firms, 77% have carbon burdens exceeding their market capitalizations, as do 13% of firms even with indirect emissions omitted. The 30 largest emitters account for all the decarbonization of U.S. corporations predicted by 2050. Predicted emission reductions, and even firms' targets, fall short of the Paris Agreement. Firms' emissions are predictable by past emissions, investment, climate score, and book-to-market. |
| JEL: | D62 G30 G38 Q51 Q54 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33110 |
| By: | John Asker; Allan Collard-Wexler; Charlotte De Canniere; Jan De Loecker; Christopher R. Knittel |
| Abstract: | Market power reduces equilibrium quantities and distorts production, typically causing welfare losses. However, as Buchanan (1969) noted, market power may mitigate overproduction from negative externalities. This paper examines this in the global oil market, where OPEC’s market power affects oil production and carbon intensity. We estimate that from 1970 to 2021, OPEC’s market power reduced emissions by over 67 GtCO2, equating to $4, 073 billion in climate damages and 17.8% of the carbon budget needed for the 1.5◦ C Paris Agreement target. This environmental benefit outweighs the welfare loss from distorted production allocation. |
| JEL: | L12 Q41 Q54 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33115 |
| By: | Aflaki, Sam (HEC Paris); Atasu, Atalay (INSEAD); Van Wassenhove, Luk N. (INSEAD) |
| Abstract: | Moving toward a net zero energy system demands heavy investment in renewable energy sources. Wind energy, specifically offshore wind, has proven to be one of the most promising technologies in this space. To that end, there is a significant trend toward installing larger turbines further offshore, based on the premise that these, often massive installations, generate more energy with less intermittency, which has been a considerable challenge in integrating renewables into the electricity grid. We explore the operational reality of this trend by building a mathematical model of electricity generation that captures the economics and environmental impact of offshore wind electricity generation that spans the lifecycle of the wind turbines, including the maintenance and end-of-life phases. We find that the ongoing trend of larger turbines further offshore can undermine the economic viability of wind farms. Specifically, we show that the decision maker's profit is inverse-U shaped both in turbine size and distance to the shore. Under reasonable assumptions, the optimal turbine size may decrease in the distance to the coast, suggesting that considering maintenance and end-of-life costs, it can be optimal for the further offshore turbines to be smaller. These results are mediated by wake loss---the phenomenon that the wind energy available to be harnessed downwind is reduced after passing through a turbine. Overall, our results caution against considering only the short-term engineering aspects and invite a more thorough understanding of wind turbines' lifetime economics and environmental impact in determining the size and distance to the shore of the wind turbines. |
| Keywords: | Renewable Energy Investment; offshore Wind; Closed loop supply chains |
| JEL: | D24 L95 Q42 Q48 |
| Date: | 2024–02–12 |
| URL: | https://d.repec.org/n?u=RePEc:ebg:heccah:1504 |
| 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:rpaeco:pb_09_23 |
| By: | Jan F. Wiegner; Madeleine Gibescu; Matteo Gazzani |
| Abstract: | Policy efforts have primarily focused on expanding variable renewable energy sources (vRES) to meet carbon emission reduction targets. The integration of high shares of renewables into the energy system is central to both policy making and research, focusing on the need for balancing options between vRES and demand. In this work we analyze and compare three key integration measures: grid expansions, electricity storage, and the role of production, storage and transport of low-carbon hydrogen. We focus on their potential to reduce emissions and energy system costs, individually and in combination. We take the North Sea as an exemplary region with ambitious 2030-2040 targets for offshore wind developments. The projections on installed generation and grid capacities, along with demand estimates from the Ten Year Network Development Plan (TYNDP) 2022, serve as a starting point for our energy system model. This starting model can then be further expanded with the three integration measures. Our findings show that grid expansions across the North Sea are a no-regret measure lowering costs, emissions and required renewable. The production of hydrogen and its direct use in industry has a lower cost reduction potential and emission reduction potential, while hydrogen storage and transport have little to no additional value. In the short term (2030), electricity storage can help to reduce emissions, but it is not cost competitive. In the longer term (2040), storage can help to balance investments in vRES assets by providing additional flexibility to the system. Combining the three integration measures provides additional benefits. The highest emission reductions can be achieved by combining electricity storage with an expansion of the grid. The highest economic benefits can be achieved with a combination of grid expansions and hydrogen production for direct use in industry. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.00540 |
| By: | Sinan Güne; Gülnaz engül Güne; Yeim Tanrvermi |
| Abstract: | The most crucial issue that urgently needs to be addressed for the problems of global warming and the greenhouse effect is carbon emissions. Carbon emissions are extensively generated throughout all stages of the building life cycle, from material production to building design and operation. Therefore, it is essential to rapidly develop and adopt low-carbon design methods. The aim of this study is to identify the challenges faced by Turkey in the transition to low-carbon energy, prioritize these challenges, and highlight the key factors of strategic importance for the effective implementation of energy policies. In the initial phase of the study, challenges in transitioning to low-carbon energy were classified through a literature review, and criteria were established. Subsequently, these criteria were compared through a focus group study. Binary comparison results were then used to obtain an equation based on weighting through the Fuzzy Analytic Hierarchy Process (FAHP) method, determining the challenges in Turkey's energy sector and their priorities for transitioning to low-carbon energy. The findings are crucial for understanding and producing strategic solutions to the obstacles in achieving energy-efficient transitions in Turkey. Furthermore, the results of the study encompass insights for transitioning to high-energy performance buildings. The analyses conducted to identify the key factors in Turkey's transition to low-carbon energy are strategically important for ensuring the effective implementation of energy policies. The outcomes of this study will serve as a valuable guide for policymakers and industry experts to comprehend and address the difficulties encountered in Turkey's energy transformation. |
| Keywords: | energy policies; Energy transition; Fuzzy AHP; low carbon energy |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-235 |
| 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:rpaeco:pb_22-23 |
| By: | Luca Eduardo Fierro; Mario Martinoli |
| Abstract: | We estimate how energy shocks affect the functional distribution of income. Using structural vector autoregressions identified with the oil supply news instrument proposed by Kanzig (2021), we find that an increase in oil prices leads to a substantial and long-lasting decline in the wage share. Real aggregate wage income is significantly impacted, with a considerable part of this decline stemming from distributive dynamics. We also investigate possible asymmetries in the response to oil supply shocks, finding that the wage share is more sensitive to negative shocks than to positive ones. This suggests that wage earners lose from oil price hikes more than they benefit from declines. |
| Keywords: | Oil shocks, Income distribution, proxy-SVAR, Asymmetries |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:ssa:lemwps:2024/30 |
| By: | Antoine Dechezleprêtre; Hélène Dernis; Luis Díaz; Guy Lalanne; Francesco Losma; Sara Romaniega Sancho; Lea Samek |
| Abstract: | While renewable energy adoption has accelerated globally, significant challenges remain in meeting ambitious deployment targets. This paper analyses bottlenecks in the renewable energy ecosystem and explores policy solutions by examining trade, innovation, M&A, jobs, and skills data. The analysis reveals three key findings: first, the renewable energy ecosystem spans multiple sectors beyond electricity production, with machinery, computer and electronics, and scientific and technical activities playing central roles in innovation activity and job creation; second, supply chain concentration is increasing for both capital goods and critical raw materials, creating dependencies on key supplier countries; and third, while innovation offers a pathway to address these dependencies through developing leading-edge manufacturing capabilities and material substitutes, patenting activity in renewable technologies is declining. Additionally, the sector faces potential skills shortages in engineering and technical trades. The findings suggest successful renewable energy deployment requires coordinated policy approaches addressing innovation support, supply chain resilience, and workforce development. |
| Keywords: | Industrial ecosystems, Industrial policy, Net-zero transition, Renewable energy |
| JEL: | L52 L64 O25 O38 Q42 |
| Date: | 2024–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaaa:2024/11-en |
| By: | Emran Sabrine; Canuto Otaviano |
| Abstract: | This paper explores the impact of commodities financialization on crude oil prices and their volatility. While some commodities have been market movers for centuries, introducing others, such as oil, to the financial markets is more recent. The increase in investors' appetite for commodity investing has led to commodities’ financialization, which is often considered an amplifier of commodity price volatility. This paper focuses on the relationship between crude oil prices and the financialization argument through the commitment of traders undertaking long and short positions on the WTI crude oil to study their impact on spot prices and, thus, on crude oil's volatility. It reviews recent swings in oil prices and the correlation between prices of crude oil and speculative positions in financial markets. It also focuses on the relationship between crude oil prices, speculative positions, and volatility represented by the CBOE Crude Oil Volatility ETF through econometric models. The aim is to bring additional information to the literature on whether commodities financialization, specifically the presence of hedgers on crude oil markets, are linked to the volatility in energy markets. We rely on tools such as correlation levels, the Granger Causality test, Vector Autoregression, and Fully Modified Least Square models to study if additional speculative activity in the Crude Oil market is responsible for adding pressure to oil prices on financial markets. We then conclude with the direction of the link between prices and speculative positions, if investors are shaping the market prices and contributing to higher volatility. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaeco:rp_02-23 |
| By: | David P. Brown; Lucija Muehlenbachs |
| Abstract: | To avoid electric-infrastructure-induced wildfires, millions of Californians had their power cut for hours to days at a time. We show that rooftop solar-plus-battery-storage systems increased in zip codes with the longest power outages. Rooftop solar panels alone will not help a household avert outages, but a solar-plus-battery-storage system will. Using this fact, we obtain a revealed-preference estimate of the willingness to pay for electricity reliability, the Value of Lost Load, a key parameter for electricity market design. Our estimate, with an average of $4, 980/MWh, suggests California’s wildfire-prevention outages resulted in losses from foregone consumption of $406 million to residential electricity consumers. |
| Keywords: | batteries, reliability, averting expenditures, power outages, Value of Lost Load |
| JEL: | Q40 Q54 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11377 |
| By: | Davide Radi; Frank Westerhoff |
| Abstract: | We propose an evolutionary competition model to investigate the green transition of firms, highlighting the role of adjustment costs, dynamically adjusted transition risk, and green technology progress in this process. Firms base their decisions to adopt either green or brown technologies on relative performance. To incorporate the costs of switching to another technology into their decision-making process, we generalize the classical exponential replicator dynamics. Our global analysis reveals that increasing transition risk, e.g., by threatening to impose stricter environmental regulations, effectively incentivizes the green transition. Economic policy recommendations derived from our model further suggest maintaining high transition risk regardless of the industry's level of greenness. Subsidizing the costs of adopting green technologies can reduce the risk of a failed green transition. While advances in green technologies can amplify the effects of green policies, they do not completely eliminate the possibility of a failed green transition. Finally, evolutionary pressures favor the green transition when green technologies are profitable. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.20379 |
| 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:rpaeco:pb_04_23 |
| 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:rpaeco:pb_20_23 |
| By: | Linnea Lorentzen; Steinar Strøm; Jon Vislie |
| Abstract: | We derive policy rules for a highly aggregated fossil-based world economy with two competing stochastic thresholds or tipping points. Current production generates emissions that add to a stock of GHGs that affect the probability distribution of hitting a climate threshold with severe consequences (the “ugly” scenario). The fossil-intensive output is used for current consumption and as investment in knowledge production, with the stock of knowledge affecting the probability distribution for hitting a “good” threshold or having a technological breakthrough (the “good” scenario). The new technology will provide a clean emission-free substitute to fossil energy. Given that no threshold has been hit, the decision rules are being continuously revised due to the induced changes in the derived probability distributions. To avoid the ugly scenario, while pushing for the good one, we find that the conditional expected marginal benefit or willingness-to-pay for knowledge will increase over time, with a non-decreasing rate of R&D investment and non-increasing rate of consumption. Implementation of this strategy requires a global organization with coercive power, equipped with instruments to tax the negative stock externality and to eventually subsidize the provision of a public good; the stock of knowledge. The optimal carbon tax is derived and shown to depend on the hazard rate for a climate change, modified by the “odds ratio” for a technological breakthrough. |
| Keywords: | competing stochastic thresholds, climate change, technological innovation, optimal carbon tax, global implementation |
| JEL: | C02 H23 H41 Q54 Q55 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11418 |
| By: | Dong, Kangyin (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Liu, Yang (School of Business, Faculty of Business and Law, University of Wollongong, New South Wales, Australia); Nepal, Rabindra (School of Business, Faculty of Business and Law, University of Wollongong, Australia); Zhao, Congyu (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China) |
| Abstract: | Energy assistance programs aim to improve the energy and environmental conditions of the recipient countries. However, energy aid can also have potential health effects for households, which remain relatively underexplored in the literature. We use a set of regression and mechanism models with panel data from 113 countries spanning from 2002 to 2020. Our results show that energy aid inhibits household health losses from air pollution-induced premature mortality. Also, the household health losses differ among demographic groups and geographical regions. We then analyze the moderating and mediating effects of key factors. The efficiency of energy aid varies notably among the males, children, and high-income groups. Furthermore, energy aid helps alleviate household health losses across regions and government quality and social development enhance the health benefits. Financial development and low-carbon energy transition are crucial impact channels, which means that energy aid indirectly reduces household health losses by facilitating financial development and low-carbon energy transition of recipient countries. Finally, we propose implications for greater energy aid utilization and better sustainable development pathways. |
| Keywords: | Energy aid; Household health; Government quality; Financial development |
| JEL: | C33 F35 Q43 Q54 |
| Date: | 2024–10–30 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_016 |
| By: | Hashimzade, Nigar; Hatsor, Limor; Jelnov, Artyom |
| Abstract: | Recent antitrust regulations in several countries have granted exemptions for col- lusion aimed at achieving environmental goals. Firms can apply for exemptions if collusion helps to develop or to implement costly clean technology, particularly in sec- tors like renewable energy, where capital costs are high and economies of scale are significant. However, if the cost of the green transition is unknown to the competition regulator, firms might exploit the exemption by fixing prices higher than necessary. The regulator faces the decision of whether to permit collusion and whether to commission an investigation of potential price fixing, which incurs costs. We fully characterise the equilibria in this scenario that depend on the regulator’s belief about the high cost of green transition. If the belief is high enough, collusion will be allowed. We also identify conditions under which a regulator’s commitment to always investigate price fixing is preferable to making discretionary decisions. |
| Keywords: | policy, antitrust, collusion, environment |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:305321 |
| By: | Lennard Schlattmann (University of Bonn) |
| Abstract: | Policies to mitigate climate change are high on the political agenda and their distributional consequences are actively discussed. This paper makes two contributions to this discussion. First, it empirically identifies the spatial dimension between rural and urban households as important for the distributional consequences of carbon taxes, because the average annual carbon footprint of rural households in Germany is 2.2 tons higher than that of urban households, around 12 percent of the average carbon footprint. Second, it builds a quantitative spatial general equilibrium model to evaluate different policies of recycling carbon tax revenues in terms of their redistributive effects and their political support along the transition to clean technologies. I find that recycling carbon tax revenues as lump-sum transfers redistributes from rural to urban households. For a carbon tax of 300 Euros per ton, the difference in the present value of net transfers is 8, 000 Euros. In contrast, place-based transfers avoid this spatial redistribution without reducing the speed of the transition to clean technologies. This has important implications for the political support for these policies, as place-based transfers allow to set a higher carbon tax under the constraint that the policy is beneficial to a majority of households in both regions. Finally, carbon taxes have sizeable general equilibrium effects on housing prices, increasing those of non-emitting houses by 5 percent, while decreasing those of carbon emitting houses by the same amount. |
| Keywords: | Climate change, Inequality, Tax and Transfer policies, Spatial Economics |
| JEL: | E21 H23 Q52 R13 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkdps:345 |
| By: | Jamel Saadaoui (University Paris 8, IEE, LED, Saint-Denis, France); Russell Smyth (Monash University, Department of Economics, Monash Business School, Caulfield, Australia); Joaquin Vespignani (University of Tasmania, Australia Tasmanian School of Business and Economics, Australia & Centre for Applied Macroeconomic Analysis, Australian National University, Australia) |
| Abstract: | Ensuring a stable supply of critical minerals at reasonable prices is essential for the clean energy transition. The security of supply of critical minerals is particularly susceptible to geopolitical risk. In this paper, we use constant and time-varying parameter local projection (TVP-LP) regression models to examine the effect of geopolitical risk on prices of six critical minerals: aluminium, copper, nickel, platinum, tin and zinc. We propose a conceptual framework in which we make two predictions. The first is that the responsiveness of prices for critical minerals to geopolitical risk will depend on the non-technical risk associated with procuring each critical mineral, which will be reflected in the elasticity of supply. The second is that geopolitical threats will have a bigger effect on critical mineral prices than geopolitical acts. With the exception of platinum prices, which have suffered a downward structural demand side shock associated with the growth of the electric vehicle market, we find empirical support for the first prediction. Our results are also consistent with the second prediction. We find considerable evidence that the effect of geopolitical risk on the prices of critical minerals are time varying with time-varying effects of geopolitical shocks observed during the Gulf War, following the 9/11 terrorist attacks and during the COVID-19 pandemic with the time varying effects generally being stronger for geopolitical threats than geopolitical acts. |
| Keywords: | Critical Minerals, Energy Security, Geopolitical Risk |
| JEL: | C14 Q20 Q41 Q43 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:mos:moswps:2024-19 |
| By: | Srivastava, Prachi (University College Dublin); Bloom, Nicholas (Stanford University); Bunn, Philip (Bank of England); Mizen, Paul (King’s College London); Thwaites, Gregory (University of Nottingham); Yotzov, Ivan (Bank of England) |
| 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. 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. Climate investment will be driven by larger firms as well as those in more energy‑intensive sectors. 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. |
| Keywords: | Firm data; Decision Maker Panel; climate change; investment |
| JEL: | C83 D22 D25 D84 |
| Date: | 2024–10–18 |
| URL: | https://d.repec.org/n?u=RePEc:boe:boeewp:1095 |
| By: | Jinchi Dong (School of the Environment, Nanjing University, China); Richard S.J. Tol (Department of Economics, University of Sussex, B91 NSL Falmer, United Kingdom); Fanzhi Wang (China Center for Energy and Environmental Policy Research; Beijing Institute of Technology, Beijing, 100081, China:) |
| Abstract: | The majority of estimates of the social cost of carbon use preference parameters calibrated to data for North America and Europe. We here use representative data for attitudes totime and risk across the world. The social cost of carbon is substantially higher in the globalnorth than in the south.The difference ismore pronounced if we count people rather than countries. |
| Keywords: | social cost of carbon |
| JEL: | Q54 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sus:susewp:0724 |
| By: | Qasim Ajao; Lanre Sadeeq; Oluwatobi Oluwaponmile Sodiq |
| Abstract: | Electric vehicles (EVs) represent a significant advancement in automotive technology, utilizing electricity as a power source instead of traditional fossil fuels, while incorporating sophisticated navigation and autopilot systems. These vehicles align with multiple Sustainable Development Goals (SDGs) by offering a more environmentally sustainable alternative to internal combustion engine vehicles (ICEVs). Despite their potential, the adoption of EVs in developing nations such as Nigeria remains constrained. This study expands the Unified Theory of Acceptance and Use of Technology (UTAUT) framework by incorporating key enablers, including poor infrastructure, affordability issues, and government support, within the broader category of facilitating conditions. Additionally, it examines factors such as trust, performance expectations, social influences, and network externalities to identify the primary determinants influencing Nigerian consumers' propensity to adopt EVs. Results show that the percentage increase of H6 (facilitating conditions - behavioral intentions) compared to H5 (network externalities - behavioral intentions) is approximately 32.35%, indicating that traditional drivers significantly influence individuals' willingness to purchase EVs and are particularly strong factors in adoption decisions. The paper concludes with a discussion of these findings and proposes strategies for future research to further explore the barriers and drivers of EV adoption in Nigeria. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.17282 |
| By: | Coppens, Léo; Venmans, Frank |
| Abstract: | Two approaches are predominant in climate models: cost–benefit and cost-effectiveness analysis. Cost–benefit analysis maximizes welfare, finding a trade-off between climate damages and emission abatement costs. By contrast, cost-effectiveness analysis minimizes abatement costs, omits damages but adds a climate constraint, such as a radiative forcing constraint, a temperature constraint or a cumulative emissions constraint. We analyse the impacts of these different constraints on optimal carbon prices, emissions and welfare. To do so, we fit a model with abatement costs, capital repurposing costs (stranded assets) and technological change on IPCC and NGFS scenarios. For scenarios reaching 1.5 °C in 2100, a constraint on cumulative emissions has the best welfare properties, followed by a temperature constraint with overshoot. A forcing constraint with overshoot has insufficient early abatement and large net negative emissions later on, leading to a substantial welfare loss of $23 Trillion. As to the paths reaching 2 °C, all cost-effectiveness analysis abate too late, but the welfare impact of this dynamic inefficiency is milder. Again, a forcing constraint with overshoot scores worst. We show that large negative emissions at the end of the century are never optimal and an artefact of constraints with overshoot. |
| Keywords: | climate change mitigation; targets formulation; integrated assessment models; optimal abatement path; cost-benefit; cost-effectiveness; welfare; negative emissions |
| JEL: | J1 |
| Date: | 2025–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125996 |
| By: | Clark, Callie; Ozturk, Ayse Tugba; Hong, Preston; Gonzalez, Marta C. PhD; Moura, Scott J. PhD |
| Abstract: | Public electric vehicle (EV) chargers are unevenly distributed in California with respect to income, race and education-levels. This creates inequitable access to electric mobility especially for low-income communities of color, which. are less likely to have access to home charging stations. These vulnerable communities are also more likely to be located in areas with poor air quality and would therefore benefit from EV adoption. Currently programs exist in California that fund incentives for public EV chargers in “Disadvantaged Communities” but the process for identifying these communities does not consider key characteristics such as housing type, potential for local emission reduction, and the degree of access to private chargers that would maximize economic benefits to these areas and the state. This study develops a model-based tool that incorporates key additional information to predict economic benefits and health impacts to local communities to guide the location of public charging infrastructure. This tool will improve the equitable distribution of public funds by identifying three types of expected benefits: economic benefit to EV owners/users, economic benefit to infrastructure operators, and greenhouse gas and PM2.5 emission reductions. |
| Keywords: | Engineering, Electric vehicle charging, social equity, disadvantaged communities, economic benefits, public health, greenhouse gases |
| Date: | 2022–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt3jb779n1 |
| By: | Farag, Markos (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The U.S. natural gasmarket is crucial for domestic energy and increasingly important in global trade. Structural analyses of this market often adapt oil market models but overlook key features, such as external trade flows, potentially limiting their ability to fully capture its dynamics. This paper extends these analyses by developing a Structural Vector Autoregression model that incorporates external gas flows and distinguishes between domestic and export-driven demand shocks, contributing to policy discussions on price fluctuations, particularly after the surge in U.S. gas exports following the Russia-Ukraine war. The model uses monthly data to reduce information loss and better capture market dynamics compared to models using quarterly data. The results indicate that supply and domestic demand shocks cause price overshoots, followed by a steady decline, with limited effects on economic activity. Export demand shocks cause short-andmedium-term price increases and gradually expand supply, while inventory demand shocks trigger brief price spikes with minimal long-term impact. The analysis reveals that failing to control for extreme values in COVID-period data yields counterintuitive results, such as reduced gas supply boosting economic activity. A decomposition of 2022–2023 price fluctuations shows domestic demand and inventory demand shocks were the main drivers, while export demand shocks — though important — played a smaller role, influencing prices through alternating effects from increased LNG exports and maintenance disruptions. Finally, the estimated elasticities suggest that natural gas supply is unresponsive to short-term pricechanges, while demand exhibits limited responsiveness. |
| Keywords: | Natural gas market; Structural VAR; Bayesian inference; Demand and supply elasticities |
| JEL: | C11 C32 F14 L71 Q31 Q43 |
| Date: | 2024–11–11 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2024_008 |
| By: | Nader Javani (Faculty of Mechanical Engineering, Yildiz Technical University, Istanbul); Pouya Salyani (Faculty of Electrical Engineering, University of Tabriz); Kazem Zare (Faculty of Electrical Engineering, University of Tabriz); Ali Rifat Bognuegri (Clean Energy Technologies Institute / Department of Electrical Engineering, Yildiz Technical University, Istanbul) |
| Abstract: | The present study investigates a multi-objective strategy for scheduling Multi-Energy Microgrids (MEMs) with Power to X (P2X) conversion technology in advance. The primary objective is to reduce operational expenses, mitigate risks, and decrease CO2 emissions. To address the risks involved in MEM?s scheduling, two risk management tools, namely Conditional Value at Risk (CVaR) and a robust approach, are recommended. These tools aim to mitigate risks from both economic and technical perspectives. The simulation findings indicate that if a risk-neutral unconservative risk approach is taken, the projected operating cost would amount to $7, 400, and the carbon emissions would reach 58 tCO2. Implementing a risk-averse strategy results in a 21% decrease in CVaR, leading to a 24% rise in operating expenses and a 20% decline in emissions. Furthermore, implementing a robust approach to regulation services leads to a 34 */day increase in operational expenses compared to the cautious and conservative strategy. |
| Keywords: | P2X conversion, Multi Energy Grid, Energy storage, Multi-objective optimization, Cost-effective |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14616433 |
| By: | Chafwehé, Boris (Bank of England); Colciago, Andrea (University of Milan-Bicocca); Priftis, Romanos (European Central Bank) |
| Abstract: | This paper introduces a New Keynesian multi-sector industry model that integrates firm heterogeneity, entry, and exit dynamics, while considering energy production from both fossil fuels and renewables. We investigate the effects of a sustained increase in fossil fuel prices on sectoral size, labour productivity, and inflation. A hike in the price of fossil resources results in higher energy prices. Due to ex-ante heterogeneity in energy intensity in production, the profitability of sectors is impacted asymmetrically. As production costs rise, less efficient firms leave the market, while new entrants must display higher idiosyncratic productivity. While this process enhances average labour productivity, it also results in a lasting decrease in the entry of new firms. A central bank with a strong anti-inflationary stance can circumvent the energy price increase and mitigate its inflationary effects by curbing rising production costs. This policy entails a higher impact cost in terms of output and lower average productivity, but leads to a faster recovery in business dynamism. Thus, our results suggest that monetary policy faces a trade-off between stabilising aggregate activity and business dynamism. |
| Keywords: | Energy; productivity; firm entry and exit; monetary policy |
| JEL: | E62 L16 O33 Q43 |
| Date: | 2024–08–16 |
| URL: | https://d.repec.org/n?u=RePEc:boe:boeewp:1091 |
| By: | Siti Indati MUSTAPA (UNITEN Business School, Universiti Tenaga Nasional); Noor Raida ABD RAHMAN (UNITEN Business School, Universiti Tenaga Nasional); Amar Hisham JAAFFAR (UNITEN Business School, Universiti Tenaga Nasional); Nor Salwati OTHMAN (UNITEN Business School, Universiti Tenaga Nasional); Syarifah Mardhiah Syed SALIM (UNITEN Business School, Universiti Tenaga Nasional) |
| Abstract: | This study explores the role of corporate governance in carbon-intensive and non-carbonintensive companies within Malaysian smart cities. The paper aims to understand the challenges and impacts of corporate governance on carbon and financial performance. In the first stage, carbon emissions data from 51 Bursa Malaysia-listed companies were analysed, revealing that corporate governance had no significant impact on carbon and financial performance. However, variations were noted in carbon-intensive industries. Liquidity emerged as a key factor positively affecting carbon performance, while firm size and market-to-book value were the main drivers of financial performance. In the second stage, a survey of 256 firms highlighted a high level of awareness regarding the significance of carbon reporting practices. Challenges included complexity regarding carbon reporting and knowledge limitations. The study advocates for the centralisation of carbon accounting standards, sharing best practices, and fostering of global collaboration to bolster effective climate action. These findings offer empirical evidence crucial for informing policymakers, companies, investors, and regulators alike. Future research could expand with larger samples, explore digital technology’s role in smart cities, and compare carbon reporting practices globally. |
| Keywords: | Carbon performance, corporate governance, financial performance, energy, smart city, carbon neutral |
| JEL: | F14 F40 |
| Date: | 2024–07–11 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-21 |
| By: | Wendt, Charlotte; Kosin, Dominick; Adam, Martin; Benlian, Alexander |
| Abstract: | The growing adoption of smart meters enables the measurement of households' energy consumption, influenced not solely by building characteristics such as thermal insulation but also by residents' behavioural patterns, such as heating and ventilation practices. To motivate residents to adopt more sustainable behaviours, user interfaces on smartphones and laptops are increasingly using consumption data from households' smart meters to enable effective goal‐setting. In contrast to previous research largely focusing on goal‐setting in isolation, this study examines the role of specific social comparison‐related design features that future research and practitioners can consider along with goal‐setting to stimulate sustainable behaviours. Specifically, we look into the influence of residents' perception of their relative performance (i.e., whether their behaviour was better or worse than a reference group) on their ambition to act (i.e., targeted improvement goal) and their actual energy consumption behaviour. Moreover, we investigate the influence of a goal's evaluative standard (i.e., whether the goal refers to one's own or other's performance) on the relationship between relative performance, ambition to act, and energy consumption behaviour. Drawing on social comparison theory, we conducted a framed field experiment with 152 households. We find that a goal's evaluative standard influences residents' awareness of their relative performance, affecting their ambition to act and, ultimately, their energy consumption behaviour. More specifically, we find that whereas other‐ (vs. self‐) referencing goals encourage residents from worse‐than‐average performing households more strongly to improve their energy consumption behaviour, they discourage better‐than‐average ones. Overall, our study provides novel insights into the interplay between relative performance and evaluative standards as a means of fostering social comparison in smart meter‐facilitated goal‐setting, highlighting their crucial role in effectively supporting sustainable behaviours. |
| Date: | 2024–11–04 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:150428 |
| By: | Hornykewycz, Anna; Kapeller, Jakob; Weber, Jan David; Schütz, Bernhard; Cserjan, Lukas |
| Abstract: | This paper presents a general framework for estimating the renovation and investment requirements associated with a green transformation of the residential sector that effectively reduces the net emissions of the residential sector (close) to zero. The framework takes ecological and distributional considerations into account and aims to provide concrete outcomes suitable to inform policy-making, while being as parsimonious as possible on the side of data requirements. All key steps associated with this framework are compiled in an openly accessible toolbox that can be adapted to different country-specific contexts. This paper takes the German case as an example to illustrate the main assumptions, data requirements, and outcomes that can be derived from this toolbox. |
| Keywords: | socio-ecological transformation, residential sector, net zero, just transition, sustainable infrastructure |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifsowp:305298 |
| By: | Frikk Nesje; Robert C. Schmidt; Moritz A. Drupp; Robert Christian Schmidt |
| Abstract: | This study presents a large-scale, global assessment of expert recommendations on key policy design options on how to implement carbon pricing schemes at a country level, for which there is no consensus in the literature. Based on a survey of more than 400 academic experts on carbon pricing, we find that almost twice as many favor a carbon tax over a cap-and-trade scheme for unilateral carbon pricing than vice versa, and three-quarters strongly recommend using border carbon adjustment to address competitiveness concerns. By contrast, guidance on revenue-use from carbon pricing is much more nuanced, with considerably lower support for lump-sum transfers to households than reflected in academic and policy discussions. Furthermore, recommendations on instrument choice and revenue use vary considerably with country- and expert characteristics, such as GDP per capita and academic discipline. Our findings can guide the search for suitable public policy approaches that combine environmental effectiveness with economic efficiency and fairness considerations. |
| Keywords: | carbon pricing, expert survey, instrument choice, border carbon adjustment, revenue recycling |
| JEL: | Q54 H43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11424 |
| By: | Mark Colas; Emmett Reynier |
| Abstract: | We study the optimal design of income-contingent subsidies for residential solar panels. Using remotely sensed data on solar panel installations across the contiguous US and a border-discontinuity design, we estimate that the responsiveness of installation rates to subsidies is strongly decreasing in income. Using these empirical elasticities, we estimate a model that embeds a solar panel installation decision into a dynamic consumption/savings framework with borrow-ing constraints. Counterfactual simulations reveal that switching to production-maximizing income-contingent subsidies leads to a three-fold increase in public funds received by low-income households and a 2.4% increase in national solar production. Means-tested subsidies are justified on both equity and efficiency grounds. |
| Keywords: | rooftop solar, subsidies, renewable energy |
| JEL: | H21 H23 Q42 Q48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11378 |
| By: | Xu, Shuanglei (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China); Deng, Youyi (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China); Nepal, Rabindra (School of Business, Faculty of Business and Law, University of Wollongong, New South Wales, Australia); Jamasb, Tooraj (Department of Economics, Copenhagen Business School) |
| Abstract: | Since the Russian-Ukrainian conflict, the European Union (EU)’s energy imports have faced challenges, and energy security has come to the fore. Focusing on the EU and its relations with major energy trading countries, we adopt a social network approach (SNA) and exponential random graph model (ERGM) to analyze the energy trade impact of the conflict. We use data from a sample of 47 countries from 2014-2023 to explore the characteristics of the structural evolution of the EU’s conventional and renewable trade networks and the influencing mechanisms behind them. As a result of the conflict and the global trend towards decoupling, the EU’s conventional trade network is undergoing a contraction. Meanwhile, its renewable trade network is thriving, indicating a shift in energy structures; the core-periphery undergoing restructuring, Russia fading out of the core circle of the trade, and the US becoming a key hub connecting all parties. Germany, France, and the Netherlands play the role of important importers as core nodes of the network. Mechanistic analysis shows that mutual plays an important role in multilateral trade; rising geopolitical risks, while posing a barrier to energy imports, have facilitated a boom in renewable trade; economic size and trade openness have positively driven energy trade. Foreign investment, intellectual property rights, and levels of population and urbanization have had a differentiated impact on the two types of energy trade; geographic proximity, linguistic commonality, and free trade agreements positively contribute to the construction and maintenance of energy trade networks. This study depicts the dynamics of EU energy trade under geopolitical turbulence, expands the research methodology in this area, deepens the understanding of energy geopolitics, and informs the transformation of the EU’s energy structure. |
| Keywords: | European Union; Conventional energy trade; Renewable energy trade; Social network; Exponential random graph model |
| JEL: | F18 Q43 |
| Date: | 2024–10–30 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_014 |
| By: | Philipp Heimberger (The Vienna Institute for International Economic Studies, wiiw); Andreas Lichtenberger (The Vienna Institute for International Economic Studies, wiiw); Bernhard Schütz (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Klima-Förderungen Eine Analyse der Verteilung von öffentlichen Fördergeldern im Zuge der Dekarbonisierung This publication is available in German language only. For a brief English summary see further below. Diese Studie liefert eine deskriptive Analyse der Verteilung von klimaschutzrelevanten direkten staatlichen Förderungen (Klima-Förderungen) in Gesamtösterreich und im Bundesländervergleich, wobei bei letzterem Oberösterreich in den Mittelpunkt der Untersuchung rückt. Während es zur Analyse von Förderungen in Österreich bereits Arbeiten gibt, liefert unsere Studie erste Ergebnisse zur Verteilungsdimension von Klima-Förderungen. Wir verwenden Daten der Transparenzdatenbank unter Berücksichtigung von Sonderauswertungen durch die Statistik Austria für die Jahre 2021 und 2022. Die analysierten Daten beinhalten direkte Förderprogramme aus vier Kategorien erneuerbare Energie und Energieeffizienzmaßnahmen; Forschung und Klima; alternative Mobilität; und weitere Umwelt- und Klimaschutzmaßnahmen. Wir berichten die Förderungen nach Förderempfängerinnen und Förderempfängern (Personen, Unternehmen und gemeinnützige Organisationen/öffentliche Verwaltung) und nehmen eine Aufteilung der Personenförderungen nach Einkommensgruppen, Altersgruppen und Bildungsstand, sowie bei den Unternehmensförderungen nach Unternehmensumsatz, Anzahl der Mitarbeitenden und Unternehmensbranche vor. Climate subsidies An analysis of the distribution of public subsidies in the context of decarbonisation This study provides a descriptive analysis of the distribution of direct state subsidies relevant for climate protection (in short climate subsidies) in Austria as a whole and in a comparison of the states, with Upper Austria taking centre stage in the latter. While there is already work on analysing subsidies in Austria, our study provides the first results on the distributional dimension of climate subsidies. We use data from the transparency database, taking into account special analysis by Statistik Austria for the years 2021 and 2022. The data analysed includes direct funding programs from four categories renewable energy and energy efficiency measures; research and climate; alternative mobility; and other environmental and climate protection measures. We report the funding by recipients (individuals, companies and non-profit organisations/public administration). The climate subsidies received by persons are broken down by income group, age group and level of education. Funding received by companies is distinguished along the dimensions turnover, number of employees and company sector. |
| Keywords: | Klimapolitik, Dekarbonisierung, Förderungen, öffentliche Ausgaben, Energie und Effizienz |
| JEL: | H25 H31 H32 Q54 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:wii:ratpap:rpg:29 |
| By: | Dong, Kangyin (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China); Yang, Senmiao (International Business Strategy Institute, University of International Business and Economics, Beijing 100029, China); Wang, Jianda (Department of Industrial and Systems Engineering, The Hong Kong Polytechnic University, Hong Kong, China); Nepal, Rabindra (School of Business, Faculty of Business and Law, University of Wollongong, Australia); Jamasb, Tooraj (Department of Economics, Copenhagen Business School) |
| Abstract: | This paper studies 41 countries from 1995 to 2021 and uses the European Green Deal (EGD) as an example to explore the impact of policy intervention on the relationship between geopolitical risk and climate vulnerability. The main findings show that: (1) Geopolitical risk can exacerbate climate vulnerability, primarily manifested in negative impacts on food, water, health, and ecosystems. (2) Green transition and green investment can mitigate the adverse impact of geopolitical risk on climate vulnerability. (3) The positive effect of the EGD on the green transition and green investment can further mitigate climate vulnerability caused by geopolitical conflicts. This study provides practical approaches and references for policymakers to reduce the impact of geopolitical conflicts and enhance climate resilience. |
| Keywords: | The European Green Deal; Geopolitical risk; Climate vulnerability; Green transition; Green investment |
| JEL: | C33 O19 Q54 Q56 |
| Date: | 2024–10–30 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_015 |
| By: | Claudia Serra-Sala; Clàudia Serra-Sala |
| Abstract: | Wind farm development, despite offering global benefits, often encounters local opposition fostered by local negative externalities and uncertain benefits. This study investigates the financial impact of wind farm development on host municipalities using Spanish municipality-level budget data from 1994 to 2022. Results from two-way fixed effect difference-in-difference and event study models show an average 45 percent increase in municipal revenue per capita, funding real investments and current expenditures. This revenue increase, driven by a tax base expansion, is complemented by a rise in capital income and local tax responses in the form of higher tax rates associated with this infrastructure. |
| Keywords: | energy transition, local public finance, wind power |
| JEL: | H20 R10 Q40 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11283 |
| By: | Abbasiharofteh, Milad (University of Groningen); Kriesch, Lukas (Justus Liebig University Giessen) |
| Abstract: | A twin (a joint green and digital) transition aims to facilitate achieving the Green Deal goals. The interplay between regional capabilities and twin transition market applications remains understudied. This research utilizes Large Language Models to analyze web texts of more than 600, 000 German firms, assessing whether their products contribute to the twin transition. Our findings suggest while AI capabilities benefit the twin transition market applications, clean technological capabilities play a significant role only in highly specialized regions. To facilitate future research and informed policymaking, we provide open access to our developed dataset and AI tools (i.e., the TwinTransition Mapper). |
| Keywords: | Twin transition; TwinTransition Mapper; digital layer; technological capabilities |
| JEL: | C81 C88 O30 O31 |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lucirc:2024_016 |
| By: | Clement Brenot (Center for International Development at Harvard University); Douglas Barrios (Center for International Development at Harvard University); Eric S. M. Protzer (Center for Global Development); Nikita Taniparti (Center for International Development at Harvard University); Ricardo Hausmann (Harvard's Growth Lab); Sophia Henn (Center for International Development at Harvard University) |
| Abstract: | Since the end of the 1990s, Kazakhstan has relied on oil and gas as the main drivers of economic growth. While this has led to rapid development of the country, especially during years of high oil prices, it has also subjected the economy to more severe downturns during oil shocks, bouts of currency overvaluation, and procyclicality in growth and public spending. Stronger economic diversification has the potential to drive a new era of sustainable growth by supporting new sources of value added and export revenue, creating new and better jobs, and making the economy more resistant to fluctuations in oil dynamics. However, repeated efforts to stimulate alternative, non-oil engines of growth have so far been inconclusive. This report introduces a new framework to identify opportunities for economic diversification in Kazakhstan. This framework attempts to improve upon previous methods, notably by building country and region-specific challenges to the development of the non-oil economy directly into the framework to identify feasible and attractive opportunities. These challenges are presented in detail in the Growth Diagnostic of Kazakhstan and are summarized along three high-level constraints: (i) an uneven economic playing field dominated by government-related public and private-entities; (ii) difficulties in acquiring productive capabilities, agglomerating them locally, and accessing export markets; and (iii) ongoing macroeconomic factors lowering external competitiveness lower and making the economy less stable. Our approach applies the economic complexity paradigm to identify what specific products and industries are most feasible for diversification, based on the existing productive capabilities demonstrated in the economy. We examine Kazakhstan's economic complexity at the national but also subnational levels, highlighting the heterogeneity of export baskets across regions that makes an analysis of opportunities at the subnational level essential. |
| Keywords: | Economic Complexity, Kazakhstan |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:glh:wpfacu:205 |
| By: | Christian de Boissieu |
| Abstract: | La transition énergétique et écologique (TEE) est inéluctable, souhaitable et désormais acceptée au plan mondial. Mais le financement de cette transition demeure fort incertain. L’objet de ce Policy Paper est d’analyser les besoins de financement à considérer, et de passer en revue les différents canaux financiers possibles. Des pistes ont déjà été lancées, des procédures et des instruments sont mis en place, mais tout cela reste insuffisant. Il va falloir combiner un grand nombre de solutions, lesquelles vont exiger des innovations financières, l’application élargie des critères ESG, une adaptation de certaines réglementations bancaires et financières et plus de coopération internationale. Pour conclure, cet article propose un certain nombre de recommandations pour faciliter le financement de la TEE. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaeco:pp_08-23 |
| By: | Nabeel Asharaf (Department of Economics, University of Sussex, Falmer BN19RH); Richard S.J. Tol (Department of Economics, University of Sussex, B91 NSL Falmer, United Kingdom) |
| Abstract: | This study critically evaluates the impact of the Pradhan Mantri Ujjwala Yojana(PMUY) on LPG accessibility among poor households in India. Using Propensity Score Matching and Differencein-Differences estimators and the National Family Health Survey (NFHS) dataset, the Average Treatment Effect on the intendedly Treated is a modest 2.1 percentage point increase in LPG consumption due to PMUY, with a parallel decrease in firewood consumption. Regional analysis reveals differential impacts, with significant progress in the North, West, and South but less pronounced effects in the East and North East. The study also underscores variance across social groups, with Scheduled Caste households showing the most substantial benefits, while Scheduled Tribes households are hardly affected. Despite the PMUY’s initial success in facilitating LPG access, sustaining its usage remains challenging. Policy should emphasise targeted interventions, income support, and address regional and community-specific disparities or the sustained usage of LPG. |
| Keywords: | PMUY, Energy Poverty, Program Evaluation, India, BPL Households |
| JEL: | I38 O13 Q48 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sus:susewp:0924 |
| By: | Djedjiga KACHENOURA,; David CHETBOUN,; Marine LAGARDE,; Laurent MÉLÈRE,; Damien SERRA |
| Abstract: | In 2015, in the run-up to COP16 in Paris, the speech by Mark Carney, then Governor of the Bank of England and mandated by the G20's Financial Stability Board, made history. He warned of the importance of financial climate risks for the stability of financial institutions and the financial system as a whole. The political burden of transition was left to governments, provided it was orderly, while the responsibility for stability fell to regulators and central banks. Finance”, informed by extra-financial disclosure regimes, would drive demand as a provider of capital. These disclosure regimes were to be initiated by private players and supported by regulators. Mr. Carney feared, however, that they would lack coherence, comparability and clarity. Since then, these schemes have proliferated, covering both risks and the alignment of financial flows with the Paris Agreement. Nevertheless, this “theory of change” and the division of responsibilities between players remain unclear and ambiguous. Financial regulators need to work together to make these different regimes interoperable and clarify their objectives. What's more, compliance costs and the disconnection of certain frameworks from national realities are holding back the mobilization of funding, and may lead to the exclusion of the most vulnerable entities, a subject that has received little attention. |
| JEL: | Q |
| Date: | 2024–11–08 |
| URL: | https://d.repec.org/n?u=RePEc:avg:wpaper:en17553 |
| By: | Jonathan Colmer; Eleanor Krause; Eva Lyubich; John Voorheis |
| Abstract: | The outside options available to workers critically determine the transitional costs of labor demand shocks. Using comprehensive administrative data, we examine the worker-level effects of the decline of coal - a regionally concentrated labor demand shock that reduced employment by more than 50% between 2011 and 2021. We show that coal workers experienced very large, persistent earnings losses compared to similar workers less connected to coal. In contrast to worker-level analyses of labor demand shocks in more spatially diffuse industries, we show that non-employment is an important margin through which adjustment operates. Workers also earn substantially lower earnings when employed. Moving between industries or regions does little to mitigate losses. Instead, we observe significant increases in SSDI receipt. Our findings suggest that transitional costs are higher in regionally concentrated industries when skills do not easily transfer across sectors. |
| Keywords: | decline of coal, earnings, workers, non-employment, technological change |
| Date: | 2024–11–07 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2049 |
| By: | Djedjiga KACHENOURA,; David CHETBOUN,; Marine LAGARDE,; Laurent MÉLÈRE,; Damien SERRA |
| Abstract: | En 2015, à l’approche de la COP16 à Paris, le discours de Mark Carney, alors gouverneur de la Banque d’Angleterre et mandaté par le Conseil de stabilité financière du G20, a fait date. Il alertait sur l’importance des risques financiers climatiques pour la stabilité des institutions financières et du système financier dans son ensemble. La charge politique de la transition était laissée aux États, à condition qu’elle soit ordonnée, tandis que la responsabilité de la stabilité incombait aux régulateurs et aux banques centrales. La « finance », informée par des régimes de divulgation d’informations extra-financières, allait orienter la demande en tant que pourvoyeur de capital. Ces régimes de divulgation devaient être initiés par les acteurs privés et soutenus par les régulateurs. M. Carney craignait cependant qu’ils manquent de cohérence, de comparabilité et de clarté. Depuis, ces régimes ont proliféré couvrant à la fois les risques et l’alignement des flux financiers sur l’Accord de Paris. Néanmoins, cette « théorie du changement » et la répartition des responsabilités des acteurs demeurent floues et ambiguës. Les régulateurs financiers doivent collaborer pour rendre ces différents régimes inter-opérants et expliciter leurs objectifs. De plus, les coûts de mise en conformité et la déconnexion de certains cadres des réalités nationales freinent la mobilisation des financements et peuvent mener à l’exclusion des entités les plus vulnérables, un sujet peu abordé. |
| JEL: | Q |
| Date: | 2024–11–05 |
| URL: | https://d.repec.org/n?u=RePEc:avg:wpaper:fr17553 |
| By: | Carlo Gallier (Free University of Bozen-Bolzano & Leibniz Centre for European Economic Research (ZEW)); Axel Ockenfels (University of Cologne & Max Planck Institute for Research on Collective Goods(MPI)); Bodo Sturm (Leipzig University of Applied Sciences & Leibniz Centre for European Economic Research (ZEW)) |
| Abstract: | Das Pariser Klimaabkommen sieht vor, die globale Erderwärmung auf unter 2°C gegenüber dem vorindustriellen Niveau zu begrenzen. Eine Herausforderung, deren Erfolg von der internationalen Kooperation der Mitgliedsstaaten abhängt und noch in weiter Ferne liegt. In diesem Policy Brief zeigen wir, warum die internationale Klimapolitik stärker auf das Prinzip der Reziprozität setzen sollte, um erfolgreich zu sein. Aktuelle Forschungsergebnisse legen nahe, dass es dabei hilfreich sein kann, wenn die Mitgliedsstaaten in kürzeren Abständen über ihre Klimaschutzmaßnahmen entscheiden. Die Ergebnisse basieren auf einer Studie, die zwei Verhandlungsdesigns zur Förderung der globalen Klimakooperation untersucht: Der Ratchet-Up-Mechanismus, der bereits Bestandteil des Pariser Abkommens ist und von den Staaten verlangt, ihre Klimaschutzmaßnahmen schrittweise zu erhöhen. Sowie einen aktuellen Politikvorschlag, der vorsieht, dass die Mitgliedsstaaten häufiger Beitragsentscheidungen treffen. Die Ergebnisse zeigen ein differenziertes Bild: Häufigere Interaktionen verbessern die Kooperation, aber der Ratchet-Up-Mechanismus hat keinen positiven Effekt. Während häufigere Beitragsentscheidungen ein Umfeld schaffen, in dem gegenseitiges Vertrauen und Kooperation sicherer aufgebaut werden können, erhöht der Ratchet-Up-Mechanismus sogar das Risiko, von Trittbrettfahrern übervorteilt zu werden. Die UN-Klimakonferenz in Baku sollte die Erkenntnisse der Kooperationsforschung stärker als bisher berücksichtigen und insbesondere das Verhandlungsdesign so verändern, dass Reziprozität erleichtert wird. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ajk:ajkpbs:064 |
| By: | Bunel, Emilio E. |
| Abstract: | Este documento presenta un estudio de vigilancia tecnológica para los países de la región que cuentan con salares ricos en litio y busca contribuir a la divulgación de las tecnologías de extracción directa del mineral. En él se revisan brevemente los métodos tradicionales y se presentan algunos de los métodos de extracción directa que han alcanzado mayor nivel de madurez tecnológica. Se explica cada uno de los procesos, se exponen algunas de sus potenciales ventajas y desventajas, y se destaca su posible interacción con el ambiente. También se señalan algunas de las empresas tras estos desarrollos y se describen sus tecnologías. Luego se abordan las oportunidades de métodos todavía en etapas tempranas de desarrollo para la extracción desde distintas fuentes acuosas, no solo salares, y algunas iniciativas en curso en el denominado triángulo del litio que podrían tener resultados positivos. Finalmente, en las conclusiones se resumen algunas de las ventajas y algunas de las limitaciones de las tecnologías de extracción directa de litio, pero se destaca que estas tienen el potencial de cambiar la forma en que el carbonato de litio se ha producido en los últimos 30 años en los salares de esa zona geográfica. |
| Date: | 2024–10–03 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80739 |