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on Energy Economics |
| By: | Teevrat Garg; Ryan Hanna; Jeffrey Myers; Sebastian Tebbe; David G. Victor |
| Abstract: | To minimize the environmental costs of electric vehicles (EVs) and support decarbonizing electric grids, drivers must charge their EVs when renewable energy generation is abundant. To induce a shift in charging behavior toward daytime hours with ample solar energy, we conducted a field experiment (n = 629) at a large workplace to measure the influence of environmental nudges and financial incentives on the usage and timing of workplace charging. Environmental nudges led drivers to shift from early to later morning charging, whereas discounts to charge at work increased total workplace charging and prompted a shift from daytime to early morning and overnight charging. We identify three clusters of mechanisms explaining these temporal shifts: the utilization and reliability of the charging network, concerns about charger scarcity, and driver characteristics. Finally, we compute the societal effects of CO2 emissions and marginal electricity costs of these shifts in workplace charging sessions. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11445 |
| By: | Souhir Ben Amor; Thomas M\"obius; Felix M\"usgens |
| Abstract: | This paper combines a techno-economic energy system model with an econometric model to maximise electricity price forecasting accuracy. The proposed combination model is tested on the German day-ahead wholesale electricity market. Our paper also benchmarks the results against several econometric alternatives. Lastly, we demonstrate the economic value of improved price estimators maximising the revenue from an electric storage resource. The results demonstrate that our integrated model improves overall forecasting accuracy by 18 %, compared to available literature benchmarks. Furthermore, our robustness checks reveal that a) the Ensemble Deep Neural Network model performs best in our dataset and b) adding output from the techno-economic energy systems model as econometric model input improves the performance of all econometric models. The empirical relevance of the forecast improvement is confirmed by the results of the exemplary storage optimisation, in which the integration of the techno-economic energy system model leads to a revenue increase of up to 10 %. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.04880 |
| By: | Pierre Coster; Julian di Giovanni; Isabelle Mejean |
| Abstract: | This paper investigates how firms adapt their sourcing of clean and dirty inputs in response to changes in climate policy. We use information from the European Union’s Emissions Trading System (EU ETS) and the Carbon Border Adjustment Mechanism (CBAM) to create a new classification of clean and dirty products based on whether they are subject to a domestic or a border carbon tax. We then combine this dataset with French firms’ product-level import data over 2000–2019 and estimate that firms’ propensity to import dirty inputs from non-EU countries increased in the 2010s, reflecting carbon leakage. A heterogeneous firm model is then used to quantify the impact of changes in firms’ sourcing of clean and dirty inputs given the implementation of a carbon tax and a carbon tariff. The simulated ETS carbon tax scenario is able to match leakage observed in the data and leads to a higher price level and a modest decline in emissions. The scenario that further includes the CBAM carbon tariff reverses carbon leakage at the cost of an additional rise in prices. Overall, household welfare declines because the higher costs associated with the carbon policies outweigh the benefits of reduced emissions. |
| Keywords: | firm sourcing; supply chain adaptation; carbon tax; carbon tariffs; carbon leakage; environment |
| JEL: | F14 F18 F64 H23 Q56 |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fednsr:99085 |
| By: | Victor Cardenas |
| Abstract: | The document addresses the essential role of financial regulatory frameworks in mitigating climate-related risks within the financial sector. The assessment evaluates Canada's efforts to establish a regulatory framework for financial climate risk disclosure, compares it to international standards, and identifies areas for improvement. The regulatory framework, fiscal impact, and incentives to relinquish investments in fossil fuel projects and transition to renewable energies swiftly and seamlessly are the primary challenges that Canada faces in achieving energy net zero targets. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.02668 |
| By: | Ramji, Aditya; Das, Anannya; Ladha, Rijhul; Palia, Ridhi |
| Keywords: | Social and Behavioral Sciences, transportation policy, electric vehicles, electric trucks, India |
| Date: | 2024–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt22s2v6k5 |
| By: | Nigar Hashimzade; Limor Hatsor; Artyom Jelnov |
| Abstract: | Recent antitrust regulations in several countries have granted exemptions for collusion aimed at achieving environmental goals. Firms can apply for exemptions if collusion helps to develop or to implement costly clean technology, particularly in sectors 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. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.06095 |
| By: | Matthias Kalkuhl (PIK Potsdam, MCC Berlin, University of Potsdam, CEPA); Maximilian Kellner (PIK Potsdam, MCC Berlin); Noah Kögel (PIK Potsdam, MCC Berlin, University of Potsdam); Lennart Stern (PIK Potsdam, MCC Berlin) |
| Abstract: | We build a dynamic model in which home owners decide when and how to switch to carbon-neutral heating. Agents differ with regard to carbon intensity and abatement costs, the latter being private information which is non-observable by the government. The heating-related investment model is nested in an overlapping generations Mirrlesian optimal taxation model with heterogeneous home ownership and labor productivity. We develop a compensation mechanism which guarantees a weak Pareto-improvement for every agent when aggregate benefits of climate policy exceed aggregate costs. The mechanism includes carbon pricing with category-based transfers, uniform ad-valorem subsidies on investments that are financed by public debt, and an income tax adjustment based on climate mitigation benefits, used to service debt. We show that exact compensation of homeowners’ dynamic abatement cost requires only minimal information: the interest rate and the future fossil fuel price path. By means of exact compensation, our model utilizes the income-tax system to redistribute heterogeneous transformation costs between households according to any number of normative considerations without efficiency losses. We numerically illustrate subsidy rates and income tax adjustments for Germany. |
| Keywords: | climate policy mix, building sector, heterogeneous abatement, Pareto improvement, compensation, income tax adjustment, subsidies |
| JEL: | H21 H23 Q58 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:pot:cepadp:82 |
| By: | Erika Christie Berle; ; ; ; |
| Abstract: | The successful transition toward renewable energies requires public support in areas where their expansion may cause adverse effects. In this context, narratives are crucial as they shape people’s perceptions. This article examines the relationship between onshore wind power and related narratives in regions across Germany. We run a series of spatial regression models on regional newspaper data, and our findings suggest that wind-related topics are more prominent and more neutrally (less angrily) framed in regions with more wind turbines. Public attitudes supporting wind energy expansion correlate with the prominence of related topics in regions’ narrative landscapes. In contrast, support for anti-wind protests does not seem to correlate with the prominence of wind-energy-related topics in regions with higher wind turbine densities. |
| Keywords: | narrative landscapes, wind turbines, regional analysis, regional news, narratives, Germany |
| JEL: | R10 R12 R52 Q28 Q48 Q50 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:egu:wpaper:2438 |
| By: | Lu, Hongyu; Rodgers, Michael O.; Guensler, Randall |
| Abstract: | In this study, a modeling framework was developed to generate high-resolution synthetic fleets, for use with synthetic household modeling in activity-based travel models, by integrating various data sources. The synthetic households were generated by pairing household locations and demographic attributes, and synthetic fleets were assigned to the households so that travel demand model outputs would have vehicles associated with each model-predicted tour for energy and emissions analysis. The CO emissions were modeled for each vehicle and each link traversed by vehicles as predicted by the travel demand model, and the results of the synthetic fleet (by employing Monte Carlo simulations and Bootstrap techniques) were compared with those from standard regional and sub-regional fleet configurations. The results demonstrated that using a traditional sub-regional fleet scenario produced 30% higher predicted emissions than when the synthetic fleet was employed with predicted vehicle trips, and that using a regional average fleet (applied throughout the region) produced emissions that were more than 50% higher than synthetic fleet emissions. Lowest household emissions were associated with low-income and non-working households, and highest emissions were associated with moderate-income households and one-person high income household groups. The results presented in the research are not necessarily conclusive, because the licensed vehicle data procured for Atlanta appear to be biased toward older vehicles. Model year penetration rates are accounted for in these analyses, but the authors believe that the variability in the registration mix for newer vehicles is likely underestimated in the data procured for these analyses. The authors conclude that access to statewide registration data will be required to remove potential biases that exist in licensed private data sets. Nevertheless, the study does demonstrate that properly pairing vehicle model years with the most active households (and their daily trips) significantly impacts energy and emissions analysis. View the NCST Project Webpage |
| Keywords: | Engineering, Synthetic Household, Synthetic Fleet, Emission Modeling, Travel Demand Model |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt20h266r6 |
| 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 ex-amine 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. |
| Keywords: | income, inequality, air pollution |
| Date: | 2024–11–12 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2051 |
| By: | Hasan Dinçer (The School of Business, ?stanbul Medipol University); Serhat Yüksel (The School of Business, ?stanbul Medipol University); Bijan Abadi (University of Maragheh) |
| Abstract: | Wind energy storage technologies should be improved by taking appropriate actions. However, all improvements increase the operational costs for the companies. Therefore, the most essential criteria should be identified to implement these actions efficiently. Accordingly, the purpose of this study is to understand the key issues for wind energy storage technologies. For this situation, a new model is established by using DEMATEL and TOPSIS techniques. Firstly, selected indicators are weighted via DEMATEL. Secondly, emerging seven economies are ranked with the help of TOPSIS. Hence, the main contribution of this study to the literature is that prior strategies can be identified for the improvements of the wind energy storage technologies by creating a new model. The results of this study can pave the way for the investors to increase the effectiveness of these projects. The findings indicate that technological development is the most critical issue for the performance improvements of the wind energy storage technologies. Durable materials and storage capacity are other critical factors for the development of these technologies. It is also stated that durable material is the most influencing factor since it affects all other criteria. On the other hand, storage capacity is the most influenced determinants because it is affected from all other items. In addition to them, it is also concluded that China is the most successful country with respect to the wind energy storage technology performance. Russia is another important emerging country in this framework. |
| Keywords: | Wind Energy; Energy Storage; Techno-economic Assessment |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14716414 |
| By: | St\'ephane Cr\'epey; Mekonnen Tadese; Gauthier Vermandel |
| Abstract: | Emissions markets play a crucial role in reducing pollution by encouraging firms to minimize costs. However, their structure heavily relies on the decisions of policymakers, on the future economic activities, and on the availability of abatement technologies. This study examines how changes in regulatory standards, firms' abatement costs, and emissions levels affect allowance prices and firms' efforts to reduce emissions. This is done in a Radner equilibrium framework encompassing inter-temporal decision-making, uncertainty, and a comprehensive assessment of the market dynamics and outcomes. The results of this research have the potential to assist policymakers in enhancing the structure and efficiency of emissions trading systems, through an in-depth comprehension of the reactions of market stakeholders towards different market situations. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.06185 |
| By: | Gipper, Brandon (Stanford U); Sequeira, Fiona (Stanford U); Shi, Shawn X. (U of Washington) |
| Abstract: | We examine the role of assurance--third-party verification--on carbon accounting quality. We develop a measure of carbon accounting quality based on the deviation of reported emissions from a model-based expected level and use two other survey-based measures. We show that assurance is associated with improved carbon accounting quality. This association cannot be explained by firm type or firm-level transparency, is isolated to the scope-specific emissions being assured, does not relate to financial reporting quality, and is stronger when assurance is more thorough and pervasive. Assurance improves carbon accounting quality by identifying issues in a firm’s carbon accounting system, resulting in fewer omissions and revisions of prior errors. Using the implementation of mandated assurance in three E.U. countries for non-financial reporting, we show that countries with these mandates experience within-firm improvements in carbon accounting quality post-regulation. Together, the findings highlight the importance of external assurance in shaping carbon accounting quality. |
| JEL: | G11 G18 G30 M14 M41 M42 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:stabus:4186 |
| By: | Hambur Wang |
| Abstract: | Air pollution has emerged as a serious challenge for China, posing a threat to public health and hindering the progress of sustainable economic development. In response to air pollution and other environmental issues, the Chinese government introduced a new Environmental Protection Law in 2015. This paper investigates the impact of the new Environmental Protection Law's implementation and corporate Environmental, Social, and Governance (ESG) investments on air pollution and public subjective well-being. Using panel data at the macro level, we employ a difference-in-differences (DID) model, with Chinese provinces and municipalities as units of analysis, to examine the combined effects of the new Environmental Protection Law and changes in corporate ESG investment intensity. The study evaluates their impacts on air quality and public subjective well-being. Findings indicate that these policies and investment behaviors significantly improve public subjective well-being by reducing air pollution. Notably, an increase in ESG investment significantly reduces air pollution levels and is positively associated with enhanced well-being. These results underscore the critical role of environmental legislation and corporate social responsibility in improving public quality of life and provide empirical support for promoting sustainable development in China and beyond. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.06110 |
| By: | Lorie Logan |
| Abstract: | Dallas Fed President Lorie K. Logan delivered these remarks at the ninth joint energy conference hosted by the Federal Reserve Banks of Dallas and Kansas City. |
| Keywords: | energy; monetary policy |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:fip:feddsp:99102 |
| By: | Chris McElroy (University of Vermont; University of Leeds); Daniel W. O'Neill (University of Leeds; Universitat de Barcelona) |
| Abstract: | We use multi-regional input-output analysis to calculate the paid labour, energy, emissions, and material use required to provide basic needs for all people. We calculate two different low-consumption scenarios, using the UK as a case study: (1) a "decent living" scenario, which includes only the bare necessities, and (2) a "good life" scenario, which is based on the minimum living standards demanded by UK residents. We compare the resulting footprints to the current footprint of the UK, and to the footprints of the US, China, India, and a global average. Labour footprints are disaggregated by sector, skill level, and region of origin. We find that both low-consumption scenarios would still require an unsustainable amount of labour and resources at the global scale. The decent living scenario would require a 26-hour working week, and on a per capita basis, 89 GJ of energy use, 5.9 tonnes of emissions, and 5.7 tonnes of used materials per year. The more socially sustainable good life scenario would require a 53-hour working week, 165 GJ of energy use, 9.9 tonnes of emissions, and 11.5 tonnes of used materials per capita. Both scenarios represent substantial reductions from the UK's current labour footprint of 68 hours per week, which the UK is only able to sustain by importing a substantial portion of its labour from other countries. We conclude that reducing consumption to the level of basic needs is not enough to achieve either social or environmental sustainability. Dramatic improvements in provisioning systems are also required. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.06337 |
| By: | Aditya Dave; Mengchen Zhu; Dapeng Hu; Sachin Tiwari |
| Abstract: | Corporate Greenhouse Gas (GHG) emission targets are important metrics in sustainable investing [12, 16]. To provide a comprehensive view of company emission objectives, we propose an approach to source these metrics from company public disclosures. Without automation, curating these metrics manually is a labor-intensive process that requires combing through lengthy corporate sustainability disclosures that often do not follow a standard format. Furthermore, the resulting dataset needs to be validated thoroughly by Subject Matter Experts (SMEs), further lengthening the time-to-market. We introduce the Climate Artificial Intelligence for Corporate Decarbonization Metrics Extraction (CAI) model and pipeline, a novel approach utilizing Large Language Models (LLMs) to extract and validate linked metrics from corporate disclosures. We demonstrate that the process improves data collection efficiency and accuracy by automating data curation, validation, and metric scoring from public corporate disclosures. We further show that our results are agnostic to the choice of LLMs. This framework can be applied broadly to information extraction from textual data. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.03402 |
| By: | Lukasz Kozak |
| Abstract: | Purpose - This study aims to examine the satisfaction of photovoltaic installation users with the facilities they were provided and the whole process of energy production from the sun. Secondly, their attitudes towards increasing self-consumption of the energy that is being produced in their households were under question combined with their readiness to buy new equipment to grow the demand for the energy for their own needs. Finally, a trial to look at the prosumers' moods towards changing law circumstances was undertaken showing the possible future of net-billing/dynamic regulations regarding the process of buying/selling of the produced energy.Design/methodology/approach - To undertake the research a survey among photovoltaic installation users was conducted. The questionnaire consisted of 31 questions which after being formulated were sent to 9 directly chosen PV owners to evaluate them and to make needed amendments. After clarifying minor ambiguities the final version of the survey was administered via the Internet among members of different groups gathering energy prosumers. As the answers were being collected without remuneration and among random participants it is considered to ensure the credibility and impartiality of the research.Findings - The results show that most PV users are satisfied with their installations and do not encounter major technical problems. More than 90% of them reckon the facilities as cost-effective and what is very important at least 20% among them has contracts already on net-billing rules which are less beneficial. Around 70% of respondents try to use the energy in the peak hours of production and nearly 60% adapt their lifestyles to the rhythm of solar energy production. However, only 36% consider buying/installing new energy sources to increase the level of energy self-consumption.Originality/value - Compared to other studies of this kind that had been previously conducted in various countries, this research was undertaken in the environment of changing law circumstances which gives a lot of valuable data. Moreover, while the past studies focused mainly on the other factors determining the development of photovoltaic installations, this survey examined the dependence between lifestyle management and people's attitudes on the increase of household energy self-consumption, thus showing its indirect influence on the development of PVs. |
| Keywords: | energy self-consumption; lifestyle management; net-billing; photovoltaic installation |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-258 |
| By: | Christina M. Andersen; Jørgen Brandt; Jesper H. Christensen; Lise M. Frohn; Camilla Geels; Timo Hener; Marianne Simonsen; Lars Skipper |
| Abstract: | This paper examines the effects of daily outdoor air pollution variation on student test scores. Using Danish register data for all elementary and lower secondary students, we link home addresses to a 1 km x 1 km pollution grid to measure test day and lifetime pollution exposure. An increase in fine particles (PM2.5) from a very clean to an average day reduces math scores by 1.8% and reading by 0.9% of a standard deviation. Even at low pollution levels, student performance is harmed, especially in math. We find no evidence of heterogeneity by health, socio-economic status, or lifetime exposure. |
| Keywords: | air pollution, cognition, test scores |
| JEL: | Q53 I21 I18 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11434 |
| By: | Amini, Sara; Rousseau, Lola; Hertwich, Edgar (Norwegian University of Science and Technology) |
| Abstract: | As buildings become more energy efficient due to construction and technological improvements and stricter regulations, the impact of construction and maintenance materials is gaining prominence in the life cycle emissions of buildings. In high-income countries like Norway, renovation of the existing building stock is crucial for reducing overall environmental impacts. However, there is a lack of comprehensive data on the life cycle assessment (LCA) of Norwegian buildings, especially concerning material use and embodied emissions. Building archetypes offer a solution by providing structured background data to enhance LCA studies. This paper addresses this gap by examining the space heating demand and material use of residential building archetypes in Norway, categorized by type and construction cohort. Dynamic energy simulations were conducted using EnergyPlus, combined with the BuildME Python package for material aggregation and calculation. Our results show that structural components dominate the material intensity (MI) of most archetypes, particularly in buildings with basements. Multi-family houses (MFHs) built after 1991 outperform single-family houses (SFHs) and apartment blocks (ABs) in both MI and material per person (MpP). Renovating SFHs to accommodate more occupants could reduce their MpP while maintaining a comfortable living environment. The higher MI in ABs, driven by concrete floor decks, suggests that using wood in future constructions could significantly lower both MI and MpP, reducing resource use and embodied emissions. This work links energy performance with material efficiency, offering valuable data for improving policy and practices in the Norwegian building sector. |
| Date: | 2024–11–15 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:emsa4 |
| By: | Eléonore Disse; Tiphaine Gautier; Maya Mokeddem; Soline Ralite |
| Abstract: | Pour atteindre l'objectif de l'Accord de Paris de limiter le réchauffement à 1, 5°C, la réduction des émissions de gaz à effet de serre (GES) et la neutralité carbone sont essentielles. Cela nécessite le maintien des capacités de stockage de carbone, qu'elles soient naturelles (puits terrestres et océaniques) ou technologiques (CCS - Carbon Capture and Storage). En notant que l’efficacité des puits naturels est de plus en plus mise à mal par le changement climatique, tandis que les puits technologiques ne sont pas encore matures et éprouvés à grande échelle. Selon le GIEC, ces puits sont nécessaires pour compenser les émissions résiduelles des secteurs difficiles à décarboner (hard to abate activities). Parmi les outils de gestion des puits, les crédits carbone (CC) jouent un rôle complémentaire aux politiques climatiques publiques, mais reposent sur un marché volontaire non réglementé (MVC), souvent utilisé par les entreprises pour des stratégies de compensation.Au-delà des débats sur l’efficacité des projets individuels (permanence, additionnalité, fuites...), cette étude propose une analyse critique du MVC, en identifiant ses limites structurelles et conceptuelles. Elle propose un nouveau cadre, centré sur les notions de « budget carbone » et de « dette climatique ». L’étude constate l'absence d'un cadre de suivi permettant d'articuler les MVC avec les politiques publiques et les objectifs nationaux (CND) ou mondiaux.À travers le cadre de comptabilité socio-environnementale C.A.R.E, l’étude introduit la notion de « solvabilité climatique », attribuant la responsabilité de l’endettement et offrant un panorama des options de gestion de cette « dette climatique ». Ce cadre distingue les activités de réduction des émissions, de maintien et de développement des puits de carbone, tout en remettant en question le modèle actuel d'arbitrage coût-bénéfice entre réduction et compensation, qui tend à confondre leurs effets climatiques. A travers son approche gestionnaire, il favorise une meilleure valorisation des coûts nécessaires pour les projets de maintien et de développement des puits, indépendamment des prix du MVC. Il fournit également un « diagnostic partagé » de l’état des engagements climatiques individuels et agrégés et permet enfin de lier les MVC avec les politiques climatiques nationales et les objectifs globaux. |
| JEL: | Q |
| Date: | 2024–11–15 |
| URL: | https://d.repec.org/n?u=RePEc:avg:wpaper:fr17603 |
| By: | Omar Barbiero |
| Abstract: | Real investment—spending (net of inflation) on nonresidential construction, manufacturing equipment, and intellectual property products (IPP)—in the United States has grown substantially over the last few years despite the high-interest-rate environment that emerged in 2022 and is only now beginning to subside. The current strength of investment is important to policymakers because its sensitivity to interest rates makes it a key channel through which monetary policy is transmitted into the economy and because real private domestic investment constitutes 15 percent of US real GDP. |
| Keywords: | CHIPS and Science Act; Inflation Reduction Act; green energy; semiconductors; manufacturing investment; fiscal incentives |
| JEL: | E01 E22 E62 E65 Q58 |
| Date: | 2024–11–19 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedbcq:99142 |
| By: | Hertwich, Edgar (Norwegian University of Science and Technology) |
| Abstract: | Empirical research from a top-down perspective employing input-output analysis suggests that we use one third of the metals to produce machinery and equipment and that their production causes 8% of global greenhouse gas emissions. Yet, our empirical understanding of how much different types of machinery and equipment contribute is limited. Machines are not represented explicitly in climate change mitigation models. There is limited research on mitigation opportunities related to machinery and equipment, and the practice and potential for circular material flows has yet to be explored. It is a very diverse category. For an overview, economic statistics and input-output models building on these are essential. Mitigation opportunities, however, can only be understood through engineering research of specific types. We identify several data sources available for empirical research and indicate options to combine these. We present a dozen propositions for further research. A machinery and equipment scenario model would represent cohorts of machinery archetype parameterized based on empirical parameters derived from statistical data, as well as application- and machine-specific engineering models. It could help us understand investment dynamics, future metal demand, and mitigation opportunities. |
| Date: | 2024–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:t35aw |
| By: | CARBONELL Juan Sebastian |
| Abstract: | This paper examines the concept of « twin transition » using the core/periphery structure of the European automotive industry as a case study. This term has emerged in recent years as a new leitmotif in international organisations and industrial companies. The idea is that the digital and green transitions can fuel each other in a virtuous economic circle of « smart growth ». This paper defends that this concept is part of the automotive industry’s long history of socio-technical paradigms. Using the theories on the performativity of economic concepts, we deconstruct the idea of a « twin transition ». We show that it is necessary to dissociate the production process from the output in order to understand the possible interactions between the two transitions. For this, we describe the regional structure of the European automotive industry in terms of core and periphery, we show then the forms taken by digitalisation and electrification in the value chain of the European automotive industry in processes and products. Finally, we show that the concept of « twin transition » has little empirical basis, but rather aims to attract resources in the context of significant economic uncertainty and the lack of coherent industrial policy. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:laedte:202405 |
| By: | Panle Jia Barwick; Hyuk-Soo Kwon; Shanjun Li; Yucheng Wang; Nahim B. Zahur |
| Abstract: | This paper examines the impact of industrial policies (IPs) on innovation in the global automobile industry. We compile the first comprehensive dataset linking global IPs with patent data related to the auto industry from 2008 to 2023. We document a major shift in policy focus: by 2022, nearly half of all IPs targeted electric vehicles (EV)-related sectors, up from almost none in 2008. In the meantime, there has been a clear technological transition from internal combustion engine (GV) technologies to EV innovations. Our analysis finds a positive relationship between policy support and innovation activity. At the country level, a one-standard-deviation increase in five-year cumulative EV-targeted IPs is associated with a four-percent rise in new EV patent applications. Firm-level analyses (using OLS, IV, and PPML) indicate that a ten-percent increase in EV financial incentives received by automakers and EV battery producers leads to a similar four-percent increase in EV innovations. We confirm the importance of path dependence in the direction of technology change in the automobile industry but find no evidence that EV-targeted IPs stimulate innovation in GV technologies. |
| JEL: | H20 L5 L60 L62 O3 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33138 |
| By: | Yuan, Boning |
| Abstract: | Using panel data from 35 listed banks' annual reports and corporate social responsibility reports from 2009 to 2022 as a sample, this study empirically examines the impact of green credit on the performance of commercial banks and takes China Merchants Bank as the case analysis object. Based on the theory of green finance, this paper discusses the function mechanism of the effect of green credit on commercial banks by empirical method, heterogeneity analysis and robustness test. Then, using the specific business data of China Merchants Bank in the field of green credit and its business performance data, the paper further reveals the specific impact of green credit on the business performance of the bank. The research shows that commercial banks have improved their asset income ability through green credit, significantly enhanced their operating efficiency in social responsibility and risk control, and positively impacted the overall operating effect. Finally, this paper suggests that green credit can positively promote commercial banks' performance and point out a new path for the sustainable development and social responsibility of commercial banks. This research has not only contributed to theory but also provided important reference for practice. |
| Date: | 2024–11–03 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:xk6ew |