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on Energy Economics |
| By: | Carolyn Fischer; Chenfei Qu; Lawrence H. Goulder |
| Abstract: | Jurisdictions employing emissions trading systems (ETSs) to control emissions often utilize other environmental or energy policies as well, including policies to support renewable energy and reduce energy consumption. Interactions with these other policies lead to different outcomes from what might be predicted by examining the policies separately. The prior literature considering policy interactions has focused mainly on the case where the ETS is cap and trade. This paper extends the literature by examining the outcomes under a wide range of ETSs (including several forms of tradable performance standards) and overlapping policies (including various renewable subsidies and electricity consumption taxes). An analytical model demonstrates that the impacts of overlapping policies on allowance prices, emissions, and electricity output depend critically on the nature of the ETS. A numerical general equilibrium model tailored to China’s economy explores the implications for the cost-effectiveness of emissions reductions. Results indicate that overlapping policies that reduce cost-effectiveness under cap and trade can significantly enhance cost-effectiveness under tradable performance standards. The model predicts that under the current and planned designs for China’s ETS, which sets differentiated tradable performance standards for emitters, implementing renewable portfolio standards and accounting for indirect emissions from electricity consumption are both beneficial. Together they can reduce the cost of achieving the national emissions target by 20-30 percent over the interval 2020-2035. Transitioning to uniform benchmarks for emitting power generators could save another 10-15 percent. The findings highlight the importance of coordinating the designs of emissions trading systems with the overlapping policies. |
| JEL: | O38 Q48 Q52 Q58 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33197 |
| By: | Ryan Kellogg |
| Abstract: | It is now plausible to envision scenarios in which global demand for crude oil falls to essentially zero by the end of this century, driven by improvements in clean energy technologies, adoption of stringent climate policies, or both. This paper asks what such a demand decline, when anticipated, might mean for global oil supply. One possibility is the well-known “green paradox”: because oil is an exhaustible resource, producers may accelerate near-term extraction in order to beat the demand decline. This reaction would increase near-term CO2 emissions and could possibly even lead the total present value of climate damages to be greater than if demand had not declined at all. However, because oil extraction requires potentially long-lived investments in wells and other infrastructure, the opposite may occur: an anticipated demand decline reduces producers' investment rates, decreasing near-term oil production and CO2 emissions. To evaluate whether this disinvestment effect outweighs the green paradox, or vice-versa, I develop a tractable model of global oil supply that incorporates both effects, while also capturing industry features such as heterogeneous producers, exercise of market power by low-cost OPEC producers, and marginal drilling costs that increase with the rate of drilling. I find that for model inputs with the strongest empirical support, the disinvestment effect outweighs the traditional green paradox. In order for anticipation effects on net to substantially increase cumulative global oil extraction, I find that industry investments must have short time horizons, and that producers must have discount rates that are comparable to U.S. treasury bill rates. |
| JEL: | L71 Q40 Q54 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33207 |
| By: | Souhir Ben Amor; Smaranda Sgarciu; Taimyra BatzLineiro; Felix Muesgens |
| Abstract: | Global warming is caused by increasing concentrations of greenhouse gases, particularly carbon dioxide (CO2). A metric used to quantify the change in CO2 emissions is the marginal emission factor, defined as the marginal change in CO2 emissions resulting from a marginal change in electricity demand over a specified period. This paper aims to present two methodologies to estimate the marginal emission factor in a decarbonized electricity system with high temporal resolution. First, we present an energy systems model that incrementally calculates the marginal emission factors. Second, we examine a Markov Switching Dynamic Regression model, a statistical model designed to estimate marginal emission factors faster and use an incremental marginal emission factor as a benchmark to assess its precision. For the German electricity market, we estimate the marginal emissions factor time series historically (2019, 2020) using Agora Energiewende and for the future (2025, 2030, and 2040) using estimated energy system data. The results indicate that the Markov Switching Dynamic Regression model is more accurate in estimating marginal emission factors than the Dynamic Linear Regression models, which are frequently used in the literature. Hence, the Markov Switching Dynamic Regression model is a simpler alternative to the computationally intensive incremental marginal emissions factor, especially when short-term marginal emissions factor estimation is needed. The results of the marginal emission factor estimation are applied to an exemplary low-emission vehicle charging scenario to estimate CO2 savings by shifting the charge hours to those corresponding to the lower marginal emissions factor. By implementing this emission-minimized charging approach, an average reduction of 31% in the marginal emission factor was achieved over the 5 years. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.17379 |
| By: | Thibault Briera (AgroParisTech, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Julien Lefèvre (AgroParisTech, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Despite a vast potential, the accessibility of low cost finance remains a critical barrier to the deployment of Variable Renewable Energy (VRE) in many developing countries. High financing costs threaten the competitiveness of renewable energy technologies and impede progress in the energy transition. This study aims to assess the extent to which international climate finance could help reduce the cost of capital for VRE investments and accelerate the renewable energy transition in developing countries. We employ the IMACLIM-R multi-regional Integrated Assessment Model (IAM) to examine various climate finance scenarios, factoring in the interaction between public and private capital through a dedicated model for the average cost of capital (CoC). The results show that international climate finance can significantly enhance the adoption of renewable energy in regions that receive this support. For instance, Africa could achieve +43% electricity generation from VRE by 2030 in a scenario with deep risk sharing and mitigation for VRE investments, compared to a no-policy scenario. Our study demonstrates that reducing the financing costs of VRE investment through international climate finance encourages clean and affordable energy development. However it must be complemented by other policies to achieve more ambitious climate and sustainable development objectives. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04824002 |
| By: | Simmons, Richard; Weed, Caleb; Rodgers, Michael |
| Abstract: | This research explores electric vehicle (EV) and grid interactions with a focus on CO2 emissions for future scenarios where EVs comprise growing market shares (e.g., 10% of the overall fleet mix). A major contribution of this effort has been to develop a methodology that integrates sub-system models and datasets that have previously stood alone, namely models and data that characterize: vehicle energy consumption, travel demands, vehicle charging, and temporal emission profiles associated with electric power generation dispatch. This convergence research helps quantify the relative emissions of light duty vehicle use and charging during various times of day to enable comparison of EV modes against one another and against conventional vehicle baselines. An initial use case involving light duty commuter and recharging scenarios has been explored as a means of validating and tuning the methodology. Under certain simulated scenarios, observed marginal emissions can be as much as 20% lower in the overnight hours compared to marginal CO2 emissions experienced during an identical charging event during the daytime. This study also confirms that marginal CO2 assumptions generally yield higher CO2 impacts than identical simulations that assume weighted average emissions. This variance is broad, ranging from 22% less to 97% greater, depending on a host of case-sensitive factors. These findings suggest that it will be essential to coordinate charging schedules and consider upstream grid implications in order to reduce the environmental impacts of EVs. By quantifying technical parameters related to both the magnitude and the range of possible emissions impacts, the study’s findings can be useful for education and awareness by all EV users, and will help decision-makers consider the importance of emission rate assumptions and the temporal granularity of the tools and data. More specifically, stakeholders should be incentivized to charge when marginal emissions are lowest whenever possible. This idea also has important implications about the location, type, cost and ownership models for tomorrow’s charging infrastructure. Translating and operationalizing this type of guidance will require some combination of education, access to rigorous and clear decision-support tools, signals between stakeholders (e.g., utilities and consumers), and behavioral change. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Electric vehicles, low carbon transportation, emissions, CO2, EV charging, marginal emissions, electric grid |
| Date: | 2024–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt9kh490xz |
| By: | Russo, Suzanne (Resources for the Future); Holmes, Brandon (Resources for the Future) |
| Abstract: | The need to transform the energy infrastructure of the United States to support a low-carbon economy will bring extensive development opportunities and challenges to communities, particularly those in the vicinity of existing oil and gas installations. These frontline communities are the most likely to also host new large clean energy projects, such as the Department of Energy (DOE) Regional Clean Hydrogen Hubs and Carbon Capture and Storage facilities (The White House, 2023; Musick et al., 2023).The process of energy redevelopment to meet ambitious climate targets will attract tens of billions of dollars in private and public investment over the coming decades, with capital already deployed through the Biden-Harris administration’s Inflation Reduction Act and Bipartisan Infrastructure Law (De La Garza, 2022; US Department of Energy, 2022). Local residents are often economically dependent on the fossil fuel industry for direct employment, local tax revenue, and spillover demand supporting local restaurants, shops, and other small businesses (Kaufman, 2024). However, fossil fuel communities can suffer social and environmental harms from new energy infrastructure (Resources for the Future, 2021). Neighborhoods adjacent to oil and gas wells and refineries, for example, have been disproportionately exposed to harmful air and water pollution for decades, resulting in lower public health outcomes (Proville et al., 2022). The section of the Lower Mississippi River in Louisiana between Baton Rouge and New Orleans has earned the infamous nickname Cancer Alley because of the more than 200 fossil fuel installations located there, which are responsible for a quarter of domestic petrochemical production (Castellón, 2021).Low-income people of color often constitute a significant demographic in fossil fuel communities (Donaghy et al., 2023). A 2024 paper found that Black Americans are three-quarters more likely than all other racial groups, on average, to reside near polluting sites, and more than one million Blacks live less than half a mile from a petrochemical plant (McCoy, 2022). Historically, disadvantaged communities have lacked the bargaining power to ensure that infrastructure developers invest in local economies as part of their projects and to hold industry accountable for pollution and other environmental impacts (Willis & Buonocore, 2023). As the sustainable energy transition ushers in a new era of large-scale energy facility construction, such as hydrogen hubs and direct air capture facilities, there is a need for additional community engagement, planning, and agreements to ensure that communities adjacent to existing and new energy investments benefit from the clean energy transition.In recognition of the need for community representation and economic benefits in the clean energy transition, DOE currently requires Community Benefits Plans (CBPs) for large-scale energy facilities funded through its Office of Clean Energy Demonstrations, which include hydrogen and direct air capture facilities, as well as other competitively awarded projects funded by the Bipartisan Infrastructure Law and the Inflation Reduction Act. DOE also recently launched the Regional Energy Democracy Initiative (REDI), which is intended to provide technical assistance and capacity building to support communities in meaningful engagement in the design and implementation of community benefits associated with DOE-funded projects in the US Gulf South region (US Department of Energy, n.d.).CBPs, when done well, require considerable time on the part of community members and project developers. Understanding whether CBPs are the optimal vehicle to generate community representation in project planning decisions and to deliver local social, economic, and environmental benefits is important to determine whether CBPs should continue as the preferred community engagement and benefits tool for DOE-funded projects. To inform the approaches undertaken through REDI and in other communities across the country where DOE-funded energy projects will take place, we sought to understand how the DOE CBP process is currently unfolding, if there are opportunities for improvement, and if Community Benefits Agreements (CBAs)—legally binding contracts negotiated between a community and a developer—can provide a useful paradigm for improved community outcomes.Ideally, such an analysis would include review of CBPs developed by DOE-funded project teams, including an examination of whether and how the CBPs changed between application submission and contractual obligation, as well as the nature of community participation in the drafting of these plans. Unfortunately, such an analysis is not currently possible, as the only documentation presently released on the CBPs of DOE-funded projects is a high-level “Community Benefits Commitment Summary, ” describing the types of benefits a project will aim to provide to the community and discussing possible future community engagement. However, through literature review and evaluation of community-generated statements and papers, lessons can be learned to guide future public sector efforts that seek to ensure representative community participation, benefits sharing, and reduction of cumulative impacts. |
| Date: | 2025–01–22 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-25-02 |
| By: | Stathis Devves; Angelos Alamanos; Phoebe Koundouri |
| Abstract: | The terrestrial transportation sector, including passengers, buses, and trains, is becoming an increasingly complex field in terms of decarbonization, requiring science-driven, data-based solutions to address its energy and emissions challenges effectively. Greece exemplifies these challenges, as its transportation sector has been slow in transitioning towards decarbonization, despite the country's commitments. Factors such as dependence on conventional fuels, infrastructure inefficiencies, and policy gaps exacerbate the situation, highlighting the urgent need for comprehensive modeling and assessment tools. This research presents a detailed assessment of Greece's transportation sector, focusing on energy demand and associated greenhouse gas (GHG) emissions, per use and per fuel type. Leveraging the Low-Emission-Analysis Platform (LEAP) model, we analyze the sector's fuel mix across various uses at a national scale, marking, to the best of our knowledge, the first such effort for Greece. The model is tested under Shared Socioeconomic Pathways (SSPs) scenarios: SSP1 (sustainability-focused), SSP2 (moderate progress), and SSP5 (fossil-fueled development), projected to 2050. Our findings reveal critical insights into how different decarbonization pathways could reshape Greece's transportation sector. The key outcomes discussed include variations in energy consumption, emission trajectories, and the feasibility of achieving national and EU decarbonization targets under diverse socio-economic conditions. This work aims to support policymakers in designing robust, forward-looking transportation strategies aligned with sustainability objectives. |
| Keywords: | Transportation Decarbonization, LEAP Modeling, Energy Demand Analysis, Greenhouse Gas Emissions, Shared Socioeconomic Pathways (SSPs), Greece |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2515 |
| By: | Stathis Devves; Giannis Arampatzidis; Angelos Alamanos; Phoebe Koundouri |
| Abstract: | The global Agenda for energy transition and the imperative for climate adaptation mandate a comprehensive understanding of resource use and emissions in energy systems. Industries play a pivotal role in this transformation, both as major energy consumers and as key contributors to greenhouse gas (GHG) emissions. Building climate resilience requires the inclusion of interconnected natural resources such as water in industrial planning, highlighting the need for joint energy-water assessments to develop adaptive and holistic climate mitigation strategies. This consideration is an overlooked issue in southern European countries, given their lower industrialization levels than northern Europe. However, the analysis of resource use and emissions in industrial energy systems is a particularly critical issue for southern European countries because they face significant challenges due to their drier climate, naturally limited water resources, and their high vulnerability to climate change. At the same time, there are major emitting industries in those countries as well, and the sector's energy transition largely depends on their decarbonization as well. This research addresses this gap by analyzing Greece's industrial energy, water demands, and GHG emissions, from 2022 to 2050. It breaks the industrial sector into 17 subcategories, including food and tobacco, textiles and leather, wood products, paper pulp and printing, chemicals and chemical products, rubber and plastic, non-metallic minerals, basic metals, machinery, transport equipment, other manufacturing, coke and refined petroleum products, mining, cement and steel production. The annual energy and water consumption alongside GHG emissions were estimated, by coupling the Low Emissions Analysis Platform (LEAP) model with the WaterReqGCH model. Such integrated assessments are essential for informed policy evaluation and decision-making. Further, we evaluate the Greek National Energy and Climate Plan, showing its potential to shape a more sustainable industrial sector, considering its effects on the simulated water-energy-emissions system. Findings reveal critical synergies, trade-offs, and gaps, emphasizing the necessity of co-considering water resources into energy planning, developing thus more holistic pathways. |
| Keywords: | Industry Decarbonization, LEAP Modeling, Water-Energy-Emissions Analysis, National Energy and Climate Plan (NECP), Greece |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2510 |
| By: | Khondaker Golam Moazzem; Tamim Ahmed; Mashfiq Ahasan Hridoy |
| Abstract: | Accelerating renewable energy financing is essential for Bangladesh to achieve its ambitious target of 40 per cent renewable energy-based power generation by 2041. Currently, renewable energy constitutes only 4.5 per cent of the country’s total energy mix, underscoring the need for substantial investment to meet future goals. Along with different domestic and international energy financing overseas investment, particularly from China, could be a key contributor to the sector. |
| Keywords: | Bangladesh renewable energy, Chinese overseas investment, Clean energy financing, Renewable energy, Bangladesh energy mix, Bangladesh |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:pbrief:61 |
| By: | Mr. Serhan Cevik; Yueshu Zhao |
| Abstract: | European electricity markets are in the midst of unprecedented changes—caused by Russia’s invasion of Ukraine and the rise of renewable sources of energy. Using high-frequency data, this paper investigates volatility spillovers across 24 countries in the European Union (EU) during the period 2014–2024 to provide a better understanding of the transmission of risks in an international context. We develop both a static and a dynamic assessment of spillover effects and directional decomposition between individual countries. Our main findings show that about 73 percent of the forecast error variation is explained by cross-variance shares, which means only 27 percent can be attributed to shocks within each country. In other words, cross-border volatility spillovers dominate the behavior in national electricity markets in Europe—and this effect has grown over time. We also implement an augmented gravity model of bilateral volatility spillovers across power markets in the EU. Altogether, these results provide important insights to policymakers and regulators with regards to greater integration of electricity markets and infrastructure improvements that would also help with the transition to low-carbon sources of power generation and strengthen energy security in Europe. |
| Keywords: | Electricity prices; Volatility; Spillovers; Gravity model; Renewable energy; Electricity market reform; Europe |
| Date: | 2025–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/007 |
| By: | Rim Berahab; Afaf Zarkik |
| Abstract: | This Policy Paper was originally published on freiheit.org This study explores how Morocco can successfully develop a green hydrogen market and at the same time contribute to the global energy transition. Authors Rim Berahab and Afaf Zarkik show how Morocco’s bold strategies and investments in renewables can shape a promising future for green hydrogen. They chart a path to decipher the potential of this energy vector, while outlining the elements necessary for the emergence of a green hydrogen market in Morocco. By considering both the country’s internal energy needs and competitive pressures on the international stage, they aim to offer an analysis that can guide Morocco towards consolidating and amplifying its competitive advantage. Morocco, by capitalizing on its pioneering role in the field of green hydrogen, can pave the way towards a more sustainable and prosperous energy future. Moreover, collaboration around Green Hydrogen can potentially constitute an important new chapter in Morocco-German relations. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:rpnn_73 |
| By: | Frederik Neuwahl (European Commission - JRC); Moritz Wegener (European Commission - JRC); Raffaele Salvucci (European Commission - JRC); Marc Jaxa-Rozen (European Commission - JRC); Juan Gea Bermudez (European Commission - JRC); Przemyslaw Sikora (European Commission - JRC); Mate Rozsai (European Commission - JRC) |
| Abstract: | This report describes the POTEnCIA CETO 2024 Scenario, which showcases how the deep decarbonisation of the EU’s energy system can be achieved from an energy technology perspective in alignment with the general objectives of the European Climate Law. The scenario has been modelled using the JRC-in-house developed POTEnCIA model in order to provide a detailed explanation of how the different technology pathways were derived for the accompanying CETO 2024 technology reports. The report summarises the underlying methodology of the POTEnCIA model as well as the key policies and data inputs used to develop the POTEnCIA CETO 2024 Scenario. The results show that the deployment of clean energy technologies such as renewable energy sources, electrification, and carbon capture, utilisation and storage technologies are critical for achieving the EU’s climate targets. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139836 |
| By: | Kupzok, Nils (Columbia University); Nahm, Jonas |
| Abstract: | In the late 2010s, countries began to strengthen policies that redirect financial flows into decarbonization, such as higher carbon prices and new green industrial policies. However, investments remain below what is necessary to reach official climate targets. We argue that the green turn reflects the success and limits of political bargains that attempt to use decarbonization as a means to fortify countries’ growth models and dominant economic interests. Such bargains have proven effective in overcoming entrenched path dependencies, unlocking policy progress. But these bargains also entail trade-offs that constrain the scope and goals of decarbonization. Prioritizing incumbent economic interests can slow emission cuts, limit tools to the unpopular and ineffective, and thwart visions of a just transition. To develop this argument empirically, we provide original quantitative estimates of climate policies in the G20 and conduct case studies of the UK, the EU, and South Korea. |
| Date: | 2025–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:d6p9h |
| By: | Ulf von Kalckreuth |
| Abstract: | Measuring carbon contents reliably, for products, firms and industries, is key for identifying climate change related transition risks. Phase 3 of the G20 Data Gaps Initiative requests the collection of emission data and multiregional Input-Output (IO) tables to enable the calculation of aggregate carbon contents. What sectoral distinctions do we need – and at what level of granularity? Do we need information on technology? How can statistical data be used in carbon accounting? Based on IO tables and company-level data from the United States (US), I construct a micro simulation environment that can act as a laboratory for answering these questions. The database consists of almost 5000 units located (with few exceptions) in the US and Canada. The analysis focuses on indirect emissions and carbon contents. For levels of aggregation typical of IO tables, the within-sector heterogeneity of carbon contents is very high in some industries. Still, averages can be very useful for company-level carbon accounting. Statistical data can provide consistent starting values for inputs in cases where direct information from providers is missing. Specifically, they may be used to approximate indirect emissions of suppliers, when company-level information on their direct emissions is available. This will be the standard case in the European Union (EU), once upcoming reporting requirements are in place. |
| Keywords: | greenhouse gas intensities, carbon accounting, green finance |
| JEL: | Q56 Q51 C81 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisiwp:24 |
| By: | Alexander Wimmers; Fanny B\"ose; Leonard G\"oke |
| Abstract: | Recent pledges to triple global nuclear capacity by 2050 suggest a "nuclear renaissance, " bolstered by reactor concepts such as sodium-cooled fast reactors, high-temperature reactors, and molten salt reactors. These technologies claim to address the challenges of today's high-capacity light-water reactors, i.e., cost overruns, delays, and social acceptance, while also offering additional non-electrical applications. However, this analysis reveals that none of these concepts currently meet the prerequisites of affordability, competitiveness, or commercial availability. We omit social acceptability. The cost analysis reveals optimistic FOAK cost assumptions of 5, 623 to 9, 511 USD per kW, and NOAK cost projections as low as 1, 476 USD per kW. At FOAK cost, the applied energy system model includes no nuclear power capacity, and thus indicates that significant cost reductions would be required for these technologies to contribute to energy system decarbonization. In low-cost scenarios, reactors capable of producing high temperature heat become competitive with other low-carbon technologies. We conclude that, for reactor capacties to increase significantly, a focus on certain technology lines ist necessary. However, until a concept becomes viable and commercially available, policymakers should prioritize existing technologies to decarbonize energy systems. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.15083 |
| By: | Lydia Papadaki; Olympia Nisiforou; Angelos Alamanos; Phoebe Koundouri |
| Abstract: | As the need for more environmentally friendly and energy-efficient operations becomes increasingly urgent, shipping - Shipping, despite being a carbon-efficient mode of transport - faces mounting pressure to adapt. The growing awareness of climate change and its impacts has led to a push for the decarbonisation of maritime transport, an industry responsible for approximately 3% of global greenhouse gas emissions. With international trade largely dependent on shipping, ensuring that maritime operations become more sustainable is essential for achieving broader global climate targets. This transition towards sustainability is especially crucial because of the sector's worldwide magnitude, which is growing in tandem with the surging shipping demand. The industry must fulfil these demands while substantially minimising its environmental impact... Alongside the increase in shipping demand, the transition to net-zero necessitates more environmental restrictions, which are expressed through policies (e.g., Emissions Trading Systems - ETS, etc.). Through a brief review of these new mandates, this paper provides a general overview of the main methods and simulation and optimisation models that have been proposed so far for analysing sustainable shipping scenarios, combining techno-economic and environmental parameters. These models combine techno-economic and environmental parameters to offer a comprehensive understanding of potential pathways for decarbonisation. Optimisation models considering technical shipping, fuels and costs, alternative fuels, transition rates, and various 'what-if' or policy scenarios, have been largely used to provide guidance to policymakers with respect to shipping decarbonisation. Herein, different case studies and scales are considered, in order to provide a more holistic picture of the techno-economic and environmental optimisation modelling approaches in maritime operations. Finally, different scenarios examined by these models are discussed, including different modelling cases related to the economic prices of various parameters, shipping demand, the stringency of environmental policies, and more. The findings of this research provide valuable insights for policymakers, shipping industry stakeholders, and researchers as they explore different models, and develop strategies to balance the need for increased shipping capacity with the imperative of environmental sustainability. |
| Keywords: | Shipping, Sustainable maritime operations, Fleet Optimization, Environmental regulations, Techno-economic analysis, Modelling scenarios |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2511 |
| By: | Ran Yan; Nan Zhou; Minda Ma; Chao Mao |
| Abstract: | As an emerging emitter poised for significant growth in space cooling demand, India requires comprehensive insights into historical emission trends and decarbonization performance to shape future low-carbon cooling strategies. By integrating a bottom-up demand resource energy analysis model and a top-down decomposition method, this study is the first to conduct a state-level analysis of carbon emission trends and the corresponding decarbonization efforts for residential space cooling in urban and rural India from 2000 to 2022. The results indicate that (1) the carbon intensity of residential space cooling in India increased by 292.4% from 2000 to 2022, reaching 513.8 kilograms of carbon dioxide per household. The net state domestic product per capita, representing income, emerged as the primary positive contributor. (2) The increase in carbon emissions from space cooling can be primarily attributed to the use of fans. While fan-based space cooling has nearly saturated Indian urban households, it is anticipated to persist as the primary cooling method in rural households for decades. (3) States with higher decarbonization potential are concentrated in two categories: those with high household income and substantial cooling appliance ownership and those with pronounced unmet cooling demand but low household income and hot climates. Furthermore, it is believed that promoting energy-efficient building designs can be prioritized to achieve affordable space cooling. Overall, this study serves as an effective foundation for formulating and promoting India's future cooling action plan, addressing the country's rising residential cooling demands and striving toward its net-zero goal by 2070. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.06360 |
| By: | Julia Skretting (Statistics Norway) |
| Abstract: | This paper provides evidence that oil price fluctuations have been an important driver of petroleum investment in Norway. To show this, I utilize a Bayesian vector autoregressive (BVAR) model combined with local projections, using various investment data from national accounts and firms’ survey data. I find that a 10 percent increase in real oil prices typically results in about a 4 percent rise in petroleum investment, primarily boosting activities in exploration and existing fields, while field development investments show minimal response. These results contribute to a broader understanding of the role of oil prices in shaping Norwegian business cycles. |
| Keywords: | Oil Prices; VAR model; Investment Dynamics; Macroeconomic Shocks; Bayesian Analysis; Energy Economic |
| JEL: | Q43 E22 C32 L71 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ssb:dispap:1016 |
| By: | Praveen Kumar Vidyarthi (LIVE - Laboratoire Image, Ville, Environnement - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique, IIT Roorkee - Indian Institute of Technology Roorkee); Nadège Blond (ENGEES - École Nationale du Génie de l'Eau et de l'Environnement de Strasbourg, LIVE - Laboratoire Image, Ville, Environnement - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique); Pratham Arora (IIT Roorkee - Indian Institute of Technology Roorkee); Jean-Luc Ponche (LIVE - Laboratoire Image, Ville, Environnement - UNISTRA - Université de Strasbourg - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Efficient domestic wastewater management is essential for mitigating the impact of wastewater on human health and the environment. Wastewater management with conventional technologies generates sewage sludge. The present study considered a modelling approach to evaluate various processing pathways to produce energy from the sewage sludge. Anaerobic digestion, gasification, pyrolysis, and hydrothermal liquefaction are analysed in terms of their energy generation potentials with the Aspen Plus software. A techno-economic assessment is performed to assess the economic viability of each pathway. It reveals that gasification appears as the most promising method to produce electricity, with 0.76 kWh/kgdrysludge, followed by anaerobic digestion (0.53 kWh/kgdrysludge), pyrolysis (0.34 kWh/kgdrysludge), and hydrothermal liquefaction (0.13 kWh/kgdrysludge). In contrast, the techno-economic analysis underscores the viability of anaerobic digestion with levelized cost of electricity as 0.02 $/kWh followed by gasification (0.11 $/kWh), pyrolysis (0.14 $/kWh), and hydrothermal liquefaction (2.21 $/kWh). At the same time, if the products or electricity from the processing unit is sold, equivalent results prevail. The present study is a comprehensive assessment of sludge management for researchers and policymakers. The result of the study can also assist policymakers and industry stakeholders in deciding on alternative options for energy recovery and revenue generation from sewage sludge. |
| Keywords: | Aspen Plus, bioenergy, gasification, pyrolysis, anaerobic digestion, hydrothermal liquefaction |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04796594 |
| By: | Rim Berahab |
| Abstract: | The energy sector faces many challenges that undermine economic growth, energy security and access, and environmental sustainability. To address these challenges, Atlantic Basin countries need to improve access to reliable energy, diversify their energy mix with low-carbon alternatives and improve energy efficiency in the long term. However, the transition to clean energy will also create new risks and challenges that differ from one Atlantic country to another, requiring additional risk mitigation measures and raising the question about the appropriate pace of energy transition. Therefore, the key to managing these risks, lies in robust, equitable, and interdependent global markets and supply chains coupled with strong regional partnerships and national alliances. Therefore, a new energy security paradigm for the Atlantic Basin must emerge to address current and future challenges and ensure that energy security for some does not create massive insecurity for others. However, this new paradigm will require making explicit the new geopolitical risks and trade-offs of sustainable energy systems. "This Paper is prepared within the framework of the Jean Monnet Atlantic Network 2.0. The European Commission's support for the production of this publication does not constitute an endorsement of the contents, which reflect the views only of the authors, and the Commission cannot be held responsible for any use which may be made of the information contained therein." |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaeco:rpnn_72 |
| By: | Jann Weinand; Tristan Pelser; Max Kleinebrahm; Detlef Stolten |
| Abstract: | Land use is a critical factor in the siting of renewable energy facilities and is often scrutinized due to perceived conflicts with other land demands. Meanwhile, substantial areas are devoted to activities such as golf, which are accessible to only a select few and have a significant land and environmental footprint. Our study shows that in countries such as the United States and the United Kingdom, far more land is allocated to golf courses than to renewable energy facilities. Areas equivalent to those currently used for golf could support the installation of up to 842 GW of solar and 659 GW of wind capacity in the top ten countries with the most golf courses. In many of these countries, this potential exceeds both current installed capacity and medium-term projections. These findings underscore the untapped potential of rethinking land use priorities to accelerate the transition to renewable energy. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.15376 |
| By: | Elias Demetriades (Audencia Business School, Audencia Recherche - Audencia Business School); Panagiotis N. Politsidis (Audencia Business School) |
| Abstract: | How do banks react to firms' climate risks? Using almost 80, 000 global syndicated loans originated from 2001 to 2021, we study bank lending to fossil fuel firms vis-à-vis other firms. We find that loans to fossil fuel firms are at least 7% more costly compared to other firms, and even more so toward the end of our sample. However, loan amounts to fossil fuel firms are approximately 22% larger, implying heavy financing of brown activities. We show that the pricing effects are even stronger for banks with higher reliance on ESG considerations, consistent with the shifts driven by the supply side (bank behaviour). Overall, our findings corroborate the view that banks price in climate risks but continue to heavily lend to polluting firms in the medium term (with an average maturity of four and one quarter years). |
| Keywords: | Syndicated loans, Bank lending, Oil and gas sector, ESG ratings, Fossil fuel lending |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04790588 |
| By: | Elias Demetriades (Audencia Business School); Panagiotis Politsidis (Audencia Business School) |
| Abstract: | How do banks react to firms' climate risks? Using almost 80, 000 global syndicated loans originated from 2001 to 2021, we study bank lending to fossil fuel firms vis-à-vis other firms. We find that loans to fossil fuel firms are at least 7% more costly compared to other firms, and even more so toward the end of our sample. However, loan amounts to fossil fuel firms are approximately 22% larger, implying heavy financing of brown activities. We show that the pricing effects are even stronger for banks with higher reliance on ESG considerations, consistent with the shifts driven by the supply side (bank behaviour). Overall, our findings corroborate the view that banks price in climate risks but continue to heavily lend to polluting firms in the medium term (with an average maturity of four and one quarter years). |
| Keywords: | Fossil fuel lending, Syndicated loans, Bank lending, Oil and gas sector, ESG ratings |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04804492 |
| By: | Ramadoss, Trisha; Tal, Gil |
| Abstract: | To meet zero-emission vehicle targets, people will have to adopt electric vehicles and convert their entire fleets. In the United States and California, most households own two or more vehicles; most of these households will need to switch their traditional vehicles for plug-in electric vehicles (PEVs). However, most of the research on PEV adoption has focused on people acquiring their first PEV. This work is the first to examine households’ decision to maintain at least two PEVs in their household fleets. Utilizing a multi-year survey of PEV adopters between 2012 and 2020, 3, 039 respondents who acquired a vehicle after obtaining an initial PEV are identified. Respondents are divided in two groups: those who reverted to an internal combustion engine vehicle (Single PEV) and those who added an additional PEV (Multi PEV). Modelling the groups using binary logistic regression, several factors that differentiate Single from Multi PEV households are identified. Compared to Single PEV, Multi PEV households are more likely to have owned previous PEVs, live in detached single-family homes with solar, own an SUV prior to their initial PEV, purchase a Tesla for their initial PEV, and use the initial PEV for commuting. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Electric vehicles, synthetic population, EV adoption, electric vehicle market |
| Date: | 2024–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt6pg9w6sc |
| By: | Putra Farrel Azhar |
| Abstract: | To achieve the federal goal to make half of all new vehicles sold in the U.S. in 2030 zero-emissions vehicles, the U.S. Department of Transportation's (DOT) Federal Highway Administration (FHWA) has employed the National Electric Vehicle Infrastructure (NEVI) Formula Program, which aims to promote an interconnected network of publicly accessible electric vehicle (EV) charging stations. By analyzing panel data on a subset of U.S. counties, this paper examines the relationship between different classes of EV charging stations and plug-in hybrid electric vehicles (PHEVs) and battery electric vehicles (BEVs). Through an instrumental approach to identify potential endogeneity, this study suggests that public charging stations and the implications of the NEVI Formula Program might not provide the optimistic benefit expected in achieving the federal goal. This finding indicates the need to reevaluate current strategies and explore additional incentives to enhance EV adoption and the effectiveness of public charging infrastructure. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.03608 |
| By: | Stathis Devves; Angelos Alamanos; Kostas Dellis; Phoebe Koundouri |
| Abstract: | Agricultural systems are becoming increasingly complex, requiring data-driven, science-supported models to address their multifaceted challenges and ensure sustainable management. In Greece, agriculture is a critical sector, contributing significantly to the economy and rural livelihoods, but it faces pressing challenges such as competing water uses, energy demands, lackluster productivity, and environmental pressures. This study presents a comprehensive multi-model assessment of Greece's Water-Energy-Food-Ecosystems Nexus, evaluating agricultural production alongside its energy and water requirements and quantifying the associated air pollution impacts at the national level. For the first time to our knowledge, we connect the FABLE Calculator (the software of the FABLE Consortium), with LEAP (Low Emissions Analysis Platform, from the Stockholm Environmental Institute), and the WaterReqGCH (a model developed by the Global Climate Hub). The FABLE Calculator provides detailed estimates of the agricultural and livestock production, which are then used by LEAP to calculate the respective energy demand and the associated greenhouse gases emissions, per fuel type used. The WaterReqGCH model uses the activity levels used in FABLE and LEAP in order to estimate the water requirements of the agricultural and livestock sector. The models run under a combination of mild-medium-extreme future scenarios until 2050 considering the Representative Concentration Pathways (RCPs) and the Shared Socioeconomic Pathways (SSPs) scenarios. The combination of the insights provided by this multi-model approach are useful and holistic evidence for policymaking. |
| Keywords: | Agricultural Systems, Energy-Emissions, Production, FABLE, LEAP, WaterReqGCH, Global Climate Hub, Water-Energy-Food Nexus |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2514 |
| By: | Kistinger, Dorothea (Mercator Research Institute on Global Commons and Climate Change (MCC)); Kögel, Noah (Mercator Research Institute on Global Commons and Climate Change (MCC)); Koch, Nicolas (Mercator Research Institute on Global Commons and Climate Change (MCC)); Kalkuhl, Matthias (Mercator Research Institute on Global Commons and Climate Change (MCC)) |
| Abstract: | The transition to a renewable heating system poses extraordinary policy challenges to societies in Europe and beyond. Many buildings are heated decentrally, which makes broad public acceptance essential. As governments may be held responsible for perceived policy impacts on individuals, analyzing their effects on electoral support is of high relevance. This study examines the electoral impact of an amendment to the German Buildings Energy Act which proposed a phase-out of fossil-fueled heating systems. We combine municipal election data with granular socioeconomic and building stock data and apply difference-in-differences regressions to identify treatment effects of the policy amendment on electoral support. We find that material costs of the policy, proxied by the characteristics of the local building stock, led to relative gains for the right-wing populist party, further increasing in low-income areas. These findings highlight the importance of holistic climate policy approaches that account for heterogeneous burdens and counteract a political backlash through compensation policies. |
| Keywords: | climate policy, public acceptance, voting, building sector, difference-in-differences |
| JEL: | C21 D72 Q48 Q58 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17596 |
| By: | Ross McKitrick (Department of Economics and Finance, University of Guelph, Guelph ON Canada) |
| Abstract: | The classical Pigovian analysis leads to the “polluter pay” concept, in which firms pay the marginal damages (MD) of their emissions, evaluated where MD equals marginal abatement costs (MACs). But Sandmo (1975) showed that the emission tax rate should be normalized by the marginal social cost of the tax system or it will lead to a suboptimal outcome. This insight implies a distinction between private and social MACs, the implication of which is largely ignored in environmental policy textbooks and in practice. Here I review the underlying theory, provide a simple graphical summary and then offer a formal derivation in general equilibrium. The Pigovian and Sandmo pricing rules can be reconciled by noting that tax distortions drive a wedge between private and social MACs and the Sandmo rule compensates for the difference. I discuss some of the practical implications and surprising paradoxes created by the Sandmo analysis. I then present a detailed discussion of how the Sandmo model can be applied to the development of optimal climate policy. |
| Keywords: | Green taxes; Pigovian rule; Sandmo model; tax interactions; damage thresholds; climate policy |
| JEL: | H21 H23 Q54 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:gue:guelph:2024-03 |
| By: | Natali, Ilaria |
| Abstract: | Recent scientific research suggests that the environment represents an important pathway for the spread of antimicrobial resistance (AMR). This paper is the first to provide causal estimates of the impact of fine particulate matter (PM2.5) on AMR diffusion. I focus on EU countries and the period 2002 to 2019. To pin down causal effects, I use an instrumental variable approach that exploits temperature inversions as a source of exogenous shocks to air pollution. I find that a 1% increase in PM2.5 leads to about a 0.7% increase in average antibiotic resistance, but there is significant heterogeneity across pathogen-antibiotic combinations in their responsiveness to changes in pollution. I then separately estimate the direct impact of pollution on resistance, as well as the impact of an indirect channel via antibiotic consumption. When antibiotic use is accounted for, the direct influence of air pollution on AMR remains sizable and significant. Finally, I provide a counterfactual analysis assessing the impact of alternative air pollution control policies on resistance and compare their effectiveness vis-à-vis interventions aimed at reducing antibiotic use in humans. Findings imply that air pollution policies can be fruitfully leveraged in the fight against AMR propagation. |
| JEL: | I12 I18 Q51 Q53 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:130132 |
| By: | Bård Harstad |
| Abstract: | A simple dynamic game is used for analyzing international environmental problems and climate agreements. Different countries are, over time, emitting as well as investing in green technology. In this framework, we can analyze the business-as-usual outcome, short vs. long term agreements, self-enforcing agreements, participation, compliance, alternative designs, and the development from the Kyoto Protocol to the Paris Agreement. The text should be accessible to students at any level. |
| JEL: | C72 F53 H87 Q2 Q5 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33161 |
| By: | Bouchta Aloui (ESSOR - Laboratoire Essor: droit, philosophie et société, FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès); Salim El Alaoui (FSJES-Fès - Faculté des Sciences Juridiques, Economiques et Sociales de Fès, USMBA - Université Sidi Mohamed Ben Abdellah, ESSOR - laboratoire essor : droit, philosophie et société) |
| Abstract: | Grüne Finanzen, auch bekannt als nachhaltige oder ethische Finanzen, erheben sich als ein aufkommendes Paradigma, das auf die wachsenden Bedenken hinsichtlich des Umweltschutzes und des imperativen Bedarfs an nachhaltiger Entwicklung reagiert. Ihr Hauptziel besteht darin, finanzielle Mittel in Projekte und Initiativen zu lenken, die dem Umweltschutz, der Verringerung der Treibhausgasemissionen und der Förderung einer Wirtschaft, die den Schutz der Biodiversität priorisiert, gewidmet sind. Die wesentlichen Dimensionen grüner Finanzen sind erstens die Förderung von Investitionen in Projekte, die die Umweltverträglichkeit unterstützen, wie erneuerbare Energien, Energieeffizienz und die nachhaltige Bewirtschaftung natürlicher Ressourcen. Zweitens müssen Projekte, die unter grünen Finanzen finanziert werden, strenge Umweltkriterien erfüllen, um mit den internationalen Nachhaltigkeitsprinzipien übereinzustimmen. Diese Kriterien umfassen Umweltleistungsstandards, ökologische Auswirkungenbewertungen und andere relevante Maßnahmen zum Schutz der Umwelt. Allerdings, in Abwesenheit eines expliziten und rigorosen rechtlichen Rahmens, besteht das Risiko von „Greenwashing", bei dem einige Projekte fälschlicherweise als ökologisch ausgeben, um Investoren anzulocken. Daher werden Transparenz und Verifizierung zwingend erforderlich, um solche betrügerischen Praktiken zu verhindern. Es ist daher entscheidend, dass Finanzinstitute wie Banken, Investmentfonds und Versicherungsunternehmen strenge Umweltkriterien in ihre Investitionsentscheidungsprozesse integrieren und verantwortungsvolle Finanzpraktiken fördern. Die größte Herausforderung der grünen Finanzen liegt darin, die finanziellen Mittel vom traditionellen Sektor in Projekte umzuleiten, die auf den Umweltschutz ausgerichtet sind. Indem sie die Entwicklung von Sektoren wie erneuerbaren Energien fördert, trägt sie aktiv zur Minderung schädlicher Umweltauswirkungen bei. Im Wesentlichen stellt die grüne Finanzierung einen innovativen Ansatz dar, der darauf abzielt, finanzielle Interessen mit den Anforderungen der Umweltverträglichkeit in Einklang zu bringen und somit eine grundlegende Rolle im Übergang zu einer ökologischeren und widerstandsfähigeren Wirtschaft zu spielen. |
| Abstract: | Green finance, also known as sustainable or ethical finance, is emerging as a paradigm that addresses growing concerns about environmental preservation and the imperative to promote sustainable development. Its primary goal is to direct financial flows toward projects and initiatives dedicated to environmental protection, reducing greenhouse gas emissions, and fostering an economy that prioritizes biodiversity conservation. The key dimensions of green finance are, first, the promotion of investments aimed at projects that support environmental sustainability, such as renewable energy, energy efficiency, and the sustainable management of natural resources. Second, projects financed under green finance must meet strict environmental criteria to align with international sustainability principles. These criteria include environmental performance standards, ecological impact assessments, and other relevant measures for environmental protection. However, in the absence of an explicit and rigorous legal framework, the risk of "greenwashing" arises, where some projects may falsely claim to be ecological in order to attract investors. Consequently, transparency and verification become imperative to prevent such fraudulent practices. Therefore, it is crucial that financial institutions, such as banks, investment funds, and insurance companies, integrate stringent environmental criteria into their investment decision-making processes and promote responsible financial practices. The major challenge of green finance lies in redirecting financial flows from traditional sectors to projects focused on environmental preservation. By supporting the development of sectors such as renewable energy, it actively contributes to mitigating harmful environmental impacts. In essence, green finance represents an innovative approach that seeks to align financial interests with the demands of environmental sustainability, thus playing a fundamental role in the transition to a more ecological and resilient economy. |
| Abstract: | La finance verte, aussi connue sous les termes de finance durable ou éthique, s'affirme comme un paradigme émergent répondant aux préoccupations croissantes concernant la sauvegarde de l'environnement et l'impératif de promouvoir le développement durable. Son objectif primordial réside dans l'orientation des flux financiers vers des projets et initiatives dédiés à la préservation de l'environnement, à la réduction des émissions de gaz à effet de serre et à la promotion d'une économie qui accorde une priorité à la sauvegarde de la biodiversité. Or, les dimensions essentielles de la finance verte se déclinent, primo, dans la promotion des investissements orientés vers des projets favorisant la durabilité environnementale, tels que les énergies renouvelables, l'efficacité énergétique et la gestion durable des ressources naturelles. Deuzio, les projets financés sous l'égide de la finance verte doivent répondre à des critères environnementaux stricts, afin d'être conformes aux principes internationaux de durabilité. Ces critères incluent des normes de performance environnementale, des évaluations de l'impact écologique et d'autres mesures pertinentes pour la sauvegarde de l'environnement. Toutefois, en l'absence d'un cadre juridique explicite et rigoureux, le risque de « greenwashing » se manifeste, où certains projets peuvent se revendiquer abusivement comme écologiques dans le but d'attirer des investisseurs. Dès lors, la transparence et la vérification deviennent impératives pour prévenir de telles pratiques frauduleuses. En conséquence, il est crucial que les institutions financières, telles que les banques, les fonds d'investissement et les compagnies d'assurance, intègrent des critères environnementaux stricts dans leurs processus décisionnels d'investissement et promeuvent des pratiques financières responsables. L'enjeu majeur de la finance verte réside dans la réorientation des flux financiers du secteur traditionnel vers des projets centrés sur la sauvegarde de l'environnement. En favorisant le développement de secteurs tels que les énergies renouvelables, elle contribue activement à atténuer les impacts environnementaux néfastes. En essence, la finance verte incarne une approche novatrice visant à harmoniser les intérêts financiers avec les exigences de durabilité environnementale, jouant ainsi un rôle fondamental dans la transition vers une économie plus écologique et résiliente. |
| Keywords: | finance verte développement durable RSE prêt vert entreprises banques charte, finance verte, développement durable, RSE, prêt vert, entreprises, banques, charte |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04775425 |
| By: | Azizul Hakim Rafi; Abdullah Al Abrar Chowdhury; Adita Sultana; Abdulla All Noman |
| Abstract: | Given the fact that climate change has become one of the most pressing problems in many countries in recent years, specialized research on how to mitigate climate change has been adopted by many countries. Within this discussion, the influence of advanced technologies in achieving carbon neutrality has been discussed. While several studies investigated how AI and Digital innovations could be used to reduce the environmental footprint, the actual influence of AI in reducing CO2 emissions (a proxy measuring carbon footprint) has yet to be investigated. This paper studies the role of advanced technologies in general, and Artificial Intelligence (AI) and ICT use in particular, in advancing carbon neutrality in the United States, between 2021. Secondly, this paper examines how Stock Market Growth, ICT use, Gross Domestic Product (GDP), and Population affect CO2 emissions using the STIRPAT model. After examining stationarity among the variables using a variety of unit root tests, this study concluded that there are no unit root problems across all the variables, with a mixed order of integration. The ARDL bounds test for cointegration revealed that variables in this study have a long-run relationship. Moreover, the estimates revealed from the ARDL model in the short- and long-run indicated that economic growth, stock market capitalization, and population significantly contributed to the carbon emissions in both the short-run and long-run. Conversely, AI and ICT use significantly reduced carbon emissions over both periods. Furthermore, findings were confirmed to be robust using FMOLS, DOLS, and CCR estimations. Furthermore, diagnostic tests indicated the absence of serial correlation, heteroscedasticity, and specification errors and, thus, the model was robust. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.16166 |
| By: | Koski, Heli; Wang, Maria |
| Abstract: | Abstract This study evaluates the impacts of public subsidies on firms in energy-intensive industries, focusing on R&D subsidies and compensation subsidies. Using firm-level data from Finnish energy-intensive industries between 2010 and 2022, it examines how these subsidies influence firm competitiveness and innovation outcomes. Compensation subsidies, designed to alleviate the additional electricity costs imposed by the EU Emissions Trading Scheme (ETS) on firms operating in certain energy-intensive industries, and to enhance their international competitiveness show no significant effects on employment, value added, or labor productivity. R&D subsidies, instead, demonstrate a substantial positive impact on innovation. Specifically, R&D subsidies significantly increase the citation stocks of climate change mitigation technology patents filed with the United States Patent and Trademark Office (USPTO). Total patent citation stocks associated with the European Patent Office (EPO) and USPTO also show statistically significant growth. |
| Keywords: | Firm subsidy, R&D subsidies, EU ETS, Competitiveness, Green innovation, Patents |
| JEL: | D22 H23 L52 O3 Q58 |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:rif:wpaper:125 |
| By: | Anton Pichler |
| Abstract: | Despite dramatic growth and cost improvements in renewables, existing energy companies exhibit significant inertia in adapting to the evolving technological landscape. This study examines technology transition patterns by analyzing over 140, 000 investments in power assets over more than two decades, focusing on how firms expand existing technology holdings and adopt new technologies. Building on our comprehensive micro-level dataset, we provide a number of quantitative metrics on global investment dynamism and the evolution of technology portfolios. We find that only about 10\% of firms experience capacity changes in a given year, and that technology portfolios of firms are highly concentrated and persistent in time. We also identify a small subset of frequently investing firms that tend to be large and are key drivers of global technology-specific capacity expansion. Technology transitions within companies are extremely rare. Less than 3% of the more than 8, 400 fossil fuel-dominated firms have substantially transformed their portfolios to a renewable focus and firms fully transitioning to renewables are, up-to-date, virtually non-existent. Notably, firms divesting into renewables do not exhibit very characteristic technology-transition patterns but rather follow idiosyncratic transition pathways. Our results quantify the complex technology diffusion dynamics and the diverse corporate responses to a changing technology landscape, highlighting the challenge of designing general policies aimed at fostering technological transitions at the level of firms. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.11597 |
| By: | Ashish Ashok Uikey (Symbiosis International (Deemed University), Pune, India); Ruturaj Baber (CHRIST (Deemed to be University)) |
| Abstract: | This study attempts to examine the impact of green brand trust and self-brand connection on green brand loyalty, with green perceived value and green transparency as antecedents. The responses were collected from and users of electric vehicles, and the proposed hypotheses were tested using Structural Equation Modeling (SEM) through SmartPLS 4. The study found that green brand trust had a significant positive impact on green brand loyalty, while the relationship between self-brand connection and green brand loyalty significant but weak. The study highlighted the importance of green perceived value as an antecedent for self-brand connection and green brand trust, which was more significant than green transparency. The study offers insights to practitioners enhancing their knowledge on formation of customer, allowing them to develop effective marketing strategies. The study recommends that companies emphasize transparency in their marketing approaches and address green challenges related to their products' environmental value. Furthermore, the study suggests that green brand loyalty may be achieved through green transparency and green perceived value, which are crucial for establishing green brand trust. |
| Keywords: | Green Marketing, Green Transparency, Green Brand Trust, Self-brand Connection, Green Brand Loyalty, Consumer Behavior, Electric Vehicles |
| Date: | 2023–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04803874 |
| By: | Stéphane Goutte (PSB - Paris School of Business - HESAM - HESAM Université - Communauté d'universités et d'établissements Hautes écoles Sorbonne Arts et métiers université, SOURCE - SOUtenabilité et RésilienCE - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - IRD [Ile-de-France] - Institut de Recherche pour le Développement); Klemens Klotzner; Hoang Viet Le (SOURCE - SOUtenabilité et RésilienCE - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - IRD [Ile-de-France] - Institut de Recherche pour le Développement); Hans Jörg von Mettenheim (IPAG Business School) |
| Abstract: | In this paper, we address the refinement of solar energy forecasting within a 2-day window by integrating weather forecast data and strategically employing entity embedding, with a specific focus on the Multilayer Perceptron (MLP) algorithm. Through the analysis of two years of hourly solar energy production data from 16 power plants in Northern Italy (2020-2021), our research underscores the substantial impact of weather variables on solar energy production. Notably, we explore the augmentation of forecasting models by incorporating entity embedding, with a particular emphasis on embedding techniques for both general weather descriptors and individual power plants. By highlighting the nuanced integration of entity embedding within the MLP algorithm, our study reveals a significant enhancement in forecasting accuracy compared to popular machine learning algorithms like XGBoost and LGBM, showcasing the potential of this approach for more precise solar energy forecasts. |
| Keywords: | Entity embedding, Machine learning, Neural networks, Solar energy, Time series forecasting |
| Date: | 2024–09–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04779953 |
| By: | Qiqi Tao (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENPC - École nationale des ponts et chaussées - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres); Marie Naveau (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENPC - École nationale des ponts et chaussées - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres); Alexis Tantet (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENPC - École nationale des ponts et chaussées - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres); Jordi Badosa (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENPC - École nationale des ponts et chaussées - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres); Philippe Drobinski (LMD - Laboratoire de Météorologie Dynamique (UMR 8539) - INSU - CNRS - Institut national des sciences de l'Univers - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENPC - École nationale des ponts et chaussées - SU - Sorbonne Université - CNRS - Centre National de la Recherche Scientifique - Département des Géosciences - ENS-PSL - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres) |
| Abstract: | The residential sector is important for the energy transition to combat global warming. Due to the geographical variability of socio-economic factors, the highly dependent residential electricity consumption (REC) should be studied locally. This study aims to project future French REC considering climate change and air-conditioning (AC) scenarios and to quantify its spatial variability. For this purpose, a linear temperature sensitivity model fitted by annual observed electricity consumption data and historical temperature is applied at an intra-regional scale. Future temperature-sensitive REC is computed by applying the model to temperature projections under the climate change pathway RCP8.5. Three AC scenarios are considered: (1) A 100% AC rate scenario assuming that any region partially equipped with AC systems nowadays will have all its households equipped with AC, but local temperature sensitivity will no longer progress; (2) A gradual spreading scenario mimicking "do like my neighbor" behavior; (3) A combination of the two scenarios. Increasing temperatures lead to an overall REC decrease (−8 TWh by 2040 and down to −20 TWh by 2100) with significant spatial variability, which had never been quantified and mapped due to a lack of suited methodology and limited available data at the finest scale. The evolution of REC is modulated by the evolution of cooling needs and the deployment of AC systems to meet those needs. In the first 2 AC scenarios, the decrease of REC due to climate change could be totally offset in the South of France, which would then display an increase in REC. When the 2 AC scenarios are combined, an increase in REC could be seen over the whole country. The most extreme AC scenario shows a potential REC rise due to AC usage by 2% by 2040 and even 32% by 2100, which could be canceled by increasing the cooling setpoint up to 26–27 °C |
| Keywords: | Residential electricity consumption, Cooling demand, Climate change impacts |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04799294 |
| By: | LARABI JAÏDI; RIM BERAHAB; SABRINE EMRAN |
| Abstract: | This paper assesses the outcomes of COP29 in Baku, focusing on its achievements and shortcomings in advancing global climate governance. Key milestones included the adoption of the new collective quantified goal (NCQG), the tripling of climate finance commitments to $300 billion annually by 2035, and progress on Article 6 carbon markets to mobilize international cooperation and finance. However, finance remains insufficient to meet the needs of developing countries, and unresolved issues such as transparency and the risk of greenwashing challenge the integrity of carbon markets. The conference also failed to maintain momentum on fossil-fuel divestment, reflecting geopolitical divisions and waning ambition. As the world prepares for COP30 in Belém, Brazil, the credibility of the COP process depends on addressing these gaps and delivering stronger, actionable commitments to meet the Paris Agreement’s aim of keeping global warming within 1.5°C. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpaeco:pp_21-24 |
| By: | Geoffrey Heal |
| Abstract: | I distinguish between reduction offsets and removal offsets, the former generated by a reduction in the rate of greenhouse gas emissions and the latter generated by the removal of greenhouse gases from the atmosphere. I show that only removal offsets make any contribution to mitigating climate change. There is a simple intuitive explanation: a firm buys an offset to compensate for the fact that it is emitting greenhouse gases and plans to continue to do so. What should “compensate” mean in this context? That the purchase of the offset undoes the negative impact of the continuing emissions on the climate. This can only happen by the removal from the atmosphere of a quantity of greenhouse gases equal to that emitted by the purchaser of the offset. So an offset which compensates for the climatic impact of emissions has to remove greenhouse gases from the atmosphere. I also review carbon offsets generated by forest management, as of all currently-traded offsets these are the closest to removal offsets. |
| JEL: | Q2 Q5 Q58 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33170 |
| By: | Anne Baschwitz (TECH ECO (ex-ITESE) - Institut Technico-Economie - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay); Vincent Bos (TECH ECO (ex-ITESE) - Institut Technico-Economie - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay); Elisabeth Le Net (TECH ECO (ex-ITESE) - Institut Technico-Economie - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay); Youcef Smadhi (TECH ECO (ex-ITESE) - Institut Technico-Economie - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay); Alice Marie (LITEN / CEA-DES - Laboratoire d'Innovation pour les Technologies des Energies Nouvelles et les nanomatériaux - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INES - Institut National de L'Energie Solaire - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Insight for a methodological approach for the construction of critical minerals modelling and delivering scenarios This presentation is based on a value chain perspective. Crossing global lithium-based energy transition policies (decarbonized mobility in particular), it aims to offer methodological insights for the forecast of critical minerals through modelling and the constitution of resource intensive energy transition scenarios. The presentation will be based on a lithium system dynamic modelling, ANTLIA, a model developed on a World and European scales to 2050 to anticipate the evolution of lithium production and consumption and to establish a sovereignty index to anticipate European needs based on policies recommendations. We will present the framework of the model (modules and parameters) and the value chains (stocks, flows, offer, demand). We will show how dynamic system modellings can be useful to establish a reference scenario and to identify the sensibility of the parameters. Changing the value of parameters provide alternative scenarios built on two major dimensions: critical minerals energy transition systems (lithium-intensive systems) and indexes of sovereignty. |
| Date: | 2023–10–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:cea-04812128 |
| By: | Yiwen Chen (Shandong Agricultural University, CN); Nora paulus (DEM, Université du Luxembourg, LU); Weihua Ruan (Purdue University Northwest, US); Benteng Zou (DEM, Université du Luxembourg) |
| Abstract: | The global transition to renewable energy technologies has significantly increased the demand for critical minerals, underscoring the need for strategies to mitigate supply chain vulnerabilities. This paper examines the dynamics between exporting and importing countries in the critical minerals market, with a focus on recycling and substitution as alternative solutions. We develop a dynamic game model to analyze the investments of the importing country in recycling and the development of backstop substitutions, while considering the optimal supply strategies of the exporting country. Our study simultaneously investigates the optimal rates of recycling and substitution within a Markovian subgame-perfect Nash equilibrium framework. This paper explores regime-switching conditions across four distinct modes: exclusive reliance on non-renewable resources, recycling readiness, substitution readiness, and the coexistence of recycling and substitution. Key contributions include deriving regime-switching conditions through impulse control, determining optimal supply strategies under different market modes, characterizing explicit mode-switching criteria, and identifying the emergence of multiple Nash equilibria in the presence of recycling. These findings offer valuable insights into reducing dependence on critical minerals, promoting sustainable resource management, and fostering resilient supply chains. |
| Keywords: | critical minerals, recycling, substitution, differential game, impulse control. |
| JEL: | Q34 C61 D4 L72 L12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:luc:wpaper:25-04 |
| By: | Saurab Chhachhi; Fei Teng |
| Abstract: | Given the vital role that smart meter data could play in handling uncertainty in energy markets, data markets have been proposed as a means to enable increased data access. However, most extant literature considers energy markets and data markets separately, which ignores the interdependence between them. In addition, existing data market frameworks rely on a trusted entity to clear the market. This paper proposes a joint energy and data market focusing on the day-ahead retailer energy procurement problem with uncertain demand. The retailer can purchase differentially-private smart meter data from consumers to reduce uncertainty. The problem is modelled as an integrated forecasting and optimisation problem providing a means of valuing data directly rather than valuing forecasts or forecast accuracy. Value is determined by the Wasserstein distance, enabling privacy to be preserved during the valuation and procurement process. The value of joint energy and data clearing is highlighted through numerical case studies using both synthetic and real smart meter data. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.07688 |
| By: | Marzia Sesini (Florence School of Regulation, European University Institute); Anna Cretì (Chaire économie du climat - Chaire économie du climat, Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres, LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique); Olivier Massol (IFPEN - IFP Energies nouvelles, IFP School, CentraleSupélec, City University of London) |
| Abstract: | The scaling up of renewable gases is now being presented as a critical and effective component of the EU's long-term decarbonization strategy. Yet, the support schemes implemented for biogas and biomethane are far less studied than the ones dedicated to renewable power generation (e.g., solar or wind). This work bridges this gap by reviewing the supporting policies implemented in the EU and conducting a retrospective comparative analysis of the mechanisms implemented in Germany, Denmark, and Italy. The analysis is based on primary data extracted from policy statements that have been harmonized. Results show that incentivizing the supply side lowers the risk associated with early investments and market development. Conversely, they highlight inhomogeneity among countries in accounting for demand and end-use in their policies. Finally, they point at the availability of feedstock and the geographic and economic structure of a country as factors influencing the development of a market for renewable gases. The analysis stresses the value of policy mix in promoting biogas and biomethane in the EU's energy mix, and it hinges on the importance of scrutinizing sectoral massification, novel business models, infrastructure integration, and enhanced financial accessibility to improve their competitiveness and market advancement within the energy landscape. |
| Keywords: | Renewable gas, Biomethane, Biogas, Policy mix, Subsidies, Comparative analysis |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04779838 |
| By: | Ådne Cappelen; Marek Jasinski; Håvard Hungnes; Julia Skretting (Statistics Norway) |
| Abstract: | Petroleum-producing countries face unique challenges in meeting global emissions targets. As global petroleum consumption declines, these nations must reallocate resources and phase out a historically profitable industry. This study examines Norway's economic transformation resulting from a significant downturn in the petroleum sector, akin to a reverse Dutch disease. Industries linked to petroleum, particularly those supplying factor inputs, must pivot to new markets, while other sectors may benefit from real exchange rate depreciation. Our findings indicate that long-term macroeconomic adjustments are modest, whereas short-term effects can be significant but are largely mitigated through standard fiscal and monetary policy measures. |
| Keywords: | Petroleum industry; Green transition; Dutch disease |
| JEL: | Q32 Q54 E60 F41 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ssb:dispap:1014 |
| By: | Broeders, Dirk; Dimitrov, Daniel; Verhoeven, Niek |
| Abstract: | Climate-linked bonds, issued by governments and supranational organizations, are pivotal in advancing towards a net-zero economy. These bonds adjust their payoffs based on climate variables such as average temperature and greenhouse gas emissions, providing investors a hedge against long-term climate risks. They also signal government commitment to climate action and incentivize stronger policies. The price differential between climate-linked bonds and nominal bonds reflects market expectations of climate risks. This paper introduces a model of climate risk hedging and estimates that approximately three percent of government debt in major economies could be converted into climate-linked bonds. JEL Classification: E58, G12, G13, Q54 |
| Keywords: | asset pricing, climate-linked bonds, climate risk, contingent claims, green finance |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253011 |
| By: | Mounia Boucetta |
| Abstract: | Au cours de la prochaine décennie, la transition énergétique transformera le paysage économique mondial en termes de régulations, d’investissements industriels et énergétiques et de solutions technologiques développées. Le continent africain est appelé à jouer un rôle important dans cette transition, tout en répondant à ses propres besoins de développement durable. Pour tirer pleinement profit de cette dynamique naissante, les pays africains devraient s'engager sur des chemins innovants et adaptés à leurs spécificités et à leurs contraintes. Ils devraient également identifier des leviers stratégiques pour stimuler l'avancement et l’accélération de leur transition énergétique, en maximisant les retombées économiques, sociales et environnementales. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb_25-24_0 |
| By: | Robin Sogalla; Joschka Wanner; Yuta Watabe |
| Abstract: | This paper investigates the role of firm heterogeneity in environmentally extended new trade models, contrasting Eaton-Kortum and Melitz models to Armington and Krugman models. We show that when emissions per sales are constant across firms -- a standard assumption in the literature -- all four models predict identical emission responses. However, when emissions per quantity are constant across firms, this equivalence breaks. We propose a generalized framework that nests both assumptions. Calibrating the model with multiple industries and estimating the key elasticity between emission intensity and productivity using German firm-level data, we find that firm heterogeneity considerably raises emissions from trade liberalization. |
| Keywords: | international trade, carbon emissions, firm heterogeneity, quantitative modeling |
| JEL: | F11 F12 F18 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11596 |
| By: | Aurélien Alfonsi (MATHRISK - Mathematical Risk Handling - UPEM - Université Paris-Est Marne-la-Vallée - ENPC - École nationale des ponts et chaussées - Inria de Paris - Inria - Institut National de Recherche en Informatique et en Automatique, CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - ENPC - École nationale des ponts et chaussées); Nerea Vadillo (CERMICS - Centre d'Enseignement et de Recherche en Mathématiques et Calcul Scientifique - ENPC - École nationale des ponts et chaussées) |
| Abstract: | This paper develops a coupled model for day-ahead electricity prices and average daily temperature which allows to model quanto weather and energy derivatives. These products have gained on popularity as they enable to hedge against both volumetric and price risks. Electricity day-ahead prices and average daily temperatures are modelled through non homogeneous Ornstein-Uhlenbeck processes driven by a Brownian motion and a Normal Inverse Gaussian Lévy process, which allows to include dependence between them. A Conditional Least Square method is developed to estimate the different parameters of the model and used on real data. Then, explicit and semi-explicit formulas are obtained for derivatives including quanto options and compared with Monte Carlo simulations. Last, we develop explicit formulas to hedge statically single and double sided quanto options by a portfolio of electricity options and temperature options (CDD or HDD). |
| Keywords: | Pricing of Securities (q-fin.PR), Portfolio Management (q-fin.PM), Risk Management (q-fin.RM), FOS: Economics and business, Energy quanto options, Weather derivatives, Joint Temperature-Electricity model, Risk hedging |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04358505 |
| By: | Olympia Nisiforou; Angelos Alamanos; Jorge Andres Garcia; Lydia Papadaki; Phoebe Koundouri |
| Abstract: | The maritime industry is undergoing significant transformation as it grapples with the need for more sustainable shipping practices. This transition involves a shift in fuel preferences, with traditional high-polluting fuels being phased out in favour of cleaner, more sustainable alternatives. The sector is also contending with increasingly stringent environmental regulations, particularly regarding the reduction of greenhouse gas (GHG) emissions. These regulatory demands, coupled with the already complex techno-economic considerations for optimizing shipping operations, present a set of multifaceted challenges that require comprehensive and integrated solutions. In response to these challenges, the Global Climate Hub (GCH) - an initiative under the United Nations Sustainable Development Solutions Network (UN SDSN) - has been actively developing models that offer sustainable pathways for all economic sectors, including the shipping industry. This paper presents such a model: MaritimeGCH, a free, open-source, and comprehensive tool (optimization model) designed to tackle the diverse challenges associated with maritime fleet management. It has been developed in Python, and there can be different variations, depending on the problem being studied and its scale. MaritimeGCH integrates a range of factors, including techno-economic, fuels, environmental, and operational elements, into a single, unified model. It also incorporates recent European environmental policies and penalties, offering a tool that is detailed, flexible, and adaptable to various scales. The model's optimization framework is tailored specifically for maritime challenges, balancing the need for economic efficiencystriving for environmental sustainability. The paper first describes the optimization logic applied to maritime problems, followed by a detailed mathematical breakdown of the MaritimeGCH model. Finally, the model's utility for policy-relevant scenario analysis is discussed. By making MaritimeGCH publicly available, the GCH aims to encourage the broader application of the model while fostering continuous improvements. The model offers significant potential for helping the maritime industry navigate its path toward sustainability while balancing economic and environmental goals in an increasingly complex regulatory landscape. |
| Keywords: | MaritimeGCH, Global Climate Hub, Fleet Optimization, Shipping, Sustainable maritime operations, Environmental regulations, Techno-economic analysis |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2512 |
| By: | Adair Morse; Parinitha R. Sastry |
| Abstract: | Banks have voluntarily committed to align their lending portfolios with a net zero path toward a decarbonized economy. In this review, we explore the economic channels for why portfolio decarbonization might be consistent with lender profit maximization. We frame the question by positing that net zero lending may create differential value through the channels of risk and returns, where return topics span profit margins and lending book growth arguments. We then use the lens of the frame to survey the literature and speak to gaps in research knowledge. We uncover multiple roles for risk arguments influencing decarbonization. Moreover, decarbonization and green investment are tied to enhanced profitability through bank lending growth. Yet, the literature has many dots yet to connect. We suggest that future work may draw further connections between the literature in climate finance and the broader literature in banking, to enhance our understanding of the role that banks will play in the net zero transition. |
| JEL: | G21 G28 G31 Q54 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33148 |
| By: | Lubos Pastor; Robert F. Stambaugh; Lucian A. Taylor |
| Abstract: | We review the literature on sustainable investing, focusing on financial effects. First, we examine the effects of investor tastes on portfolio tilts and asset prices in a simple equilibrium setting. We establish novel connections, including a direct relation between the green portfolio tilt and the greenium. We also relate our framework to prior modeling of divestment. Finally, we review evidence related to the main concepts from our theoretical analysis, including the greenium, green tilts, climate risk, and investor tastes. |
| JEL: | G12 G23 Q5 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33252 |
| By: | Garth Heutel; J. Paul Kelleher |
| Abstract: | We survey various ethical issues related to the use of pollution pricing. While pollution pricing, for example in the form of Pigouvian taxes or cap-and-trade systems, is widely used in environmental economics modeling, many moral and ethical assumptions lie behind those models, and many ethical objections to pollution pricing are disregarded. We hope this review will be helpful to environmental economists who are regularly engaged in the use of such models, and in economic reasoning more generally, but who are less familiar with their ethical underpinnings and possible implications. |
| JEL: | H23 Q50 Q52 Q58 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33300 |
| By: | Romain Presty (LGI - Laboratoire Génie Industriel - CentraleSupélec - Université Paris-Saclay, IFP School) |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04830327 |
| By: | Angelos Alamanos; Stathis Devves; Giannis Arampatzidis; Phoebe Koundouri |
| Abstract: | Land use changes, and especially urbanization, significantly impact water and energy systems, and the associated greenhouse gases (GHG) emissions. However, studying the urbanization and population dynamics and quantifying their effects on coupled water-energy-emissions systems remains underexplored in certain countries. Greece, for instance, has been slow to integrate those systems into data-driven models assessing their feedbacks. To fill this gap, this research investigates these dynamics in Greece, for the period 2022-2050, by combining different modelling approaches, for the first time to our knowledge. A Remote Sensing analysis, utilizing freely available satellite data and open-source tools such as QGIS, was applied to map and monitor land use changes, including urbanization. Greece has been proved to be a particularly interesting case study as simultaneous population decline and increasing urbanization are reshaping key sectors of the developing urban centers, such as the residential and services sectors. To capture the complex feedbacks between the developing urban centers with the changing population, to their water-energy-emissions responses, we coupled the LEAP (Low Energy Analysis Platform) model with the WaterReqGCH model. Thus, the energy consumption and the associated GHG emissions were simulated along with the water consumption of the residential and the services sectors. The results reveal critical trends: population decline drives a reduction of the overall water and energy consumption, yet, despite the reducing trends, urban areas claim increasing shares of these resources over time. Similarly, GHG emissions decrease but exhibit shifts in pollutant distribution, with certain emissions holding larger shares in urban contexts. This integrated land-water-energy-emissions analysis underscores the value of holistic assessments to manage these systems sustainably, and highlights the need to develop plans considering them as a whole. The provision of detailed information on the evolution patterns and feedbacks of those systems is critical to shape integrated policies aiming at multiple benefits. By linking urbanization patterns with resource dynamics and environmental impacts, we discuss how our findings can be translated into actionable insights for sustainable urban planning and resource management strategies. |
| Keywords: | Land cover change, Urbanization, Remote Sensing, Satellite Imagery, Water-Energy Nexus, Water consumption, Energy-Emissions modelling |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2517 |
| By: | Alessandra Alfieri; Lauren Holloway; Ulf von Kalckreuth; Stephan Moll; Christian Schmieder; Bruno Tissot |
| Date: | 2024–10–31 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisifr:16 |
| By: | Auriane Meilland (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, AgroParisTech); Yann Kervinio (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, ENPC - École nationale des ponts et chaussées); Aurélie Méjean (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique, CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Are countries contributing their fair share to the Paris Agreement? The answer to this central question can rely on knowledge about existing and potentially shared views about fairness. Yet, current studies on existing fairness views are rare and often have a limited practical scope. In this article, we design and administer a survey to elicit fairness judgements among French and US citizens regarding these issues. We find that in both countries, most respondents think that principles of climate justice should be settled internationally even if they go against some countries' interests, and express a preference for common (rather than differentiated) responsibilities -all the more likely when they are concerned about climate change. We observe support for two theoretical effort sharing rules: a convergence towards equal per capita emissions, and an operationalized version of grandfathering. Our survey also shows inconsistencies in observed fairness judgements, and that citizens have difficulties coordinating on simple judgements regarding existing nationally determined contributions. We eventually call for the progressive development of standardised surveys on these questions. |
| Keywords: | fairness, climate justice, tacit coordination game, survey, empirical social choice |
| Date: | 2024–10–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04825108 |
| By: | Stefano Carattini; Anomitro Chatterjee; Todd Cherry |
| Abstract: | Biased beliefs affect real-world decisions, including political solutions to societal challenges. One crucial example is environmental policy: people tend to underestimate the incentive effect of Pigouvian policies. Addressing biased beliefs at scale is then paramount. In the days leading up to a ballot initiative in Washington state, we implemented a large-scale field experiment providing information on carbon taxes to over 285, 000 individuals. We complemented it with a survey experiment of about 1, 000 individuals, with the same treatments as in the field experiment, shedding light on social desirability bias and mechanisms around belief revision. Using data at the voting precinct level, we show that our intervention increases revealed support for carbon taxes, mainly for a treatment centered around earmarking of tax revenue, which was one of the design features of the ballot initiative. We find the effect to be stronger in precincts relatively opposed to the initiative, and less exposed to media coverage of carbon taxes, and more exposed to coverage challenging their effectiveness. |
| Keywords: | carbon taxes, voting behaviour, Facebook ads, natural field experiment |
| JEL: | C93 D72 D82 D83 H23 Q54 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11599 |
| By: | H. Burcu Gürcihan |
| Abstract: | In this paper, we explore the interaction of monetary policy and a regulatory policy for controlling pollution within an economy populated with financially constrained producers exhibiting heterogeneity in production technology and pollution rates. Environment related components of the model include pollution externality, an abatement technology and environmental policy in the form of tax on pollutants. Our analysis is organized around two main topics: assessing the effect of monetary policy on social welfare in the presence of environmental concerns and investigating how the existence of pollution-type externality and environmental regulation influences optimal monetary policy. Our findings suggest that in the presence of heterogeneity, due to its distributional impact, monetary policy can play a role in enhancing social welfare and complementing regulatory efforts to mitigate pollution. In our model, featuring heterogeneity in productivity and pollution intensity, monetary policy influences social welfare through both pollution and consumption. The impact of monetary policy on pollution occurs indirectly through change in the allocation of production. The impact of monetary policy on consumption operates through real wage adjustments and money transfers. Furthermore, the indirect effect on consumption arises from the impact of monetary policy on optimal regulatory policy. Money growth that redirects production away from the pollutant agent creates a room for looser regulatory policy, leading to higher consumption. |
| Keywords: | Monetary policy, Environmental policy, Pollution, Cash-in-advance |
| JEL: | E58 H23 Q52 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:tcb:wpaper:2502 |
| By: | Christiane Baumeister; Florian Huber; Thomas K. Lee; Francesco Ravazzolo |
| Abstract: | This paper provides a comprehensive analysis of the forecastability of the real price of natural gas in the United States at the monthly frequency considering a universe of models that differ in their complexity and economic content. Our key finding is that considerable reductions in mean-squared prediction error relative to a random walk benchmark can be achieved in real time for forecast horizons of up to two years. A particularly promising model is a six-variable Bayesian vector autoregressive model that includes the fundamental determinants of the supply and demand for natural gas. To capture real-time data constraints of these and other predictor variables, we assemble a rich database of historical vintages from multiple sources. We also compare our model-based forecasts to readily available model-free forecasts provided by experts and futures markets. Given that no single forecasting method dominates all others, we explore the usefulness of pooling forecasts and find that combining forecasts from individual models selected in real time based on their most recent performance delivers the most accurate forecasts. |
| JEL: | C11 C32 C52 Q41 Q47 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33156 |
| By: | Enzo Cogn\'eville; Thomas Deschatre; Xavier Warin |
| Abstract: | In this paper, we propose a complete modelling framework to value several batteries in the electricity intraday market at the trading session scale. The model consists of a stochastic model for the 24 mid-prices (one price per delivery hour) combined with a deterministic model for the liquidity costs (representing the cost of going deeper in the order book). A stochastic optimisation framework based on dynamic programming is used to calculate the value of the batteries. We carry out a back test for the years 2021, 2022 and 2023 for the German market and for the French market. We show that it is essential to take liquidity into account, especially when the number of batteries is large: it allows much higher profits and avoids high losses using our liquidity model. The use of our stochastic model for the mid-price also significantly improves the results (compared to a deterministic framework where the mid-price forecast is the spot price). |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.15959 |
| By: | David d'Acunto; Raffaele Filieri (Audencia Business School); Stefano Amato (Alta Scuola Politecnica) |
| Abstract: | Consumers are increasingly concerned about sustainable development. This study investigates the impact of environmentally-framed reviews on review rating scores considering the moderation of the reviewer's country's environmental performance. We use ordered logistic and linear regression analysis on a dataset of 45k TripAdvisor reviews of green hotels posted by reviewers from 150 countries. The findings reveal that environmentally-framed reviews are associated with higher rating scores, and the reviewer's country's environmental performance positively moderates this impact. This indicates that the environmental ranking of the reviewer's country of origin influences environmentally-framed eWOM about green and non-green services. |
| Keywords: | environmentally-framed reviews rating score electronic word-of-mouth country environmental performance environmental performance index green hotels big data analytics, environmentally-framed reviews, rating score, electronic word-of-mouth, country environmental performance, environmental performance index, green hotels, big data analytics, Environmentally-framed reviews, Rating score, Electronic word-of-mouth, Country environmental performance, Environmental performance index, Green hotels, Big data analytics |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04781820 |
| By: | Odran Bonnet (Institut national de la statistique et des études économiques (INSEE)); Étienne Fize (IPP - Institut des politiques publiques, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - ENPC - École nationale des ponts et chaussées - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Tristan Loisel (Institut national de la statistique et des études économiques (INSEE)); Lionel Wilner (CREST - Centre de Recherche en Économie et Statistique - ENSAI - Ecole Nationale de la Statistique et de l'Analyse de l'Information [Bruz] - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - ENSAE Paris - École Nationale de la Statistique et de l'Administration Économique - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Compensating agents against substantial and sudden shocks requires both targeting tax policies and taking behavioral responses into account. Based on transaction-level data from France, this article exploits quasi-experimental variation provided by 2022 fuel price inflation and excise tax cuts. After disentangling anticipation from price effects, we estimate a price elasticity of fuel demand of -0.31, on average, which varies little with respect to income and location but substantially decreases with fuel spending, in absolute value. Using targeted transfers only achieves imperfect compensation, yet a budget-constrained policy-maker seeking to alleviate excessive losses relative to income prefers income-based transfers to price subsidies. |
| Keywords: | Commodity taxation, Excise fuel tax, Tax-and-transfer schemes, Gasoline price elasticity, Anticipatory behavior, Transaction-level data |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04799412 |
| By: | Andrew Holmes; Matt Jensen; Sarah Coffland; Hidemi Mitani Shen; Logan Sizemore; Seth Bassetti; Brenna Nieva; Claudia Tebaldi; Abigail Snyder; Brian Hutchinson |
| Abstract: | The Global Change Analysis Model (GCAM) simulates complex interactions between the coupled Earth and human systems, providing valuable insights into the co-evolution of land, water, and energy sectors under different future scenarios. Understanding the sensitivities and drivers of this multisectoral system can lead to more robust understanding of the different pathways to particular outcomes. The interactions and complexity of the coupled human-Earth systems make GCAM simulations costly to run at scale - a requirement for large ensemble experiments which explore uncertainty in model parameters and outputs. A differentiable emulator with similar predictive power, but greater efficiency, could provide novel scenario discovery and analysis of GCAM and its outputs, requiring fewer runs of GCAM. As a first use case, we train a neural network on an existing large ensemble that explores a range of GCAM inputs related to different relative contributions of energy production sources, with a focus on wind and solar. We complement this existing ensemble with interpolated input values and a wider selection of outputs, predicting 22, 528 GCAM outputs across time, sectors, and regions. We report a median $R^2$ score of 0.998 for the emulator's predictions and an $R^2$ score of 0.812 for its input-output sensitivity. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.08850 |
| By: | Robin Braun; George Kapetanios; Massimiliano Marcellino |
| Abstract: | This paper studies the estimation and inference of time-varying impulse response functions in structural vector autoregressions (SVARs) identified with external instruments. Building on kernel estimators that allow for nonparametric time variation, we derive the asymptotic distributions of the relevant quantities. Our estimators are simple and computationally trivial and allow for potentially weak instruments. Simulations suggest satisfactory empirical coverage even in relatively small samples as long as the underlying parameter instabilities are sufficiently smooth. We illustrate the methods by studying the time-varying effects of global oil supply news shocks on US industrial production. |
| Keywords: | Time-varying parameters; Nonparametric estimation; Structural VAR; External instruments; Weak instruments; Oil supply news shocks; Impulse response analysis |
| JEL: | C14 C32 C53 C55 |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:fip:fedgfe:2025-04 |
| By: | Mikkel Bennedsen; Eric Hillebrand; Morten {\O}rregaard Nielsen |
| Abstract: | The Global Carbon Budget, maintained by the Global Carbon Project, summarizes Earth's global carbon cycle through four annual time series beginning in 1959: atmospheric CO$_2$ concentrations, anthropogenic CO$_2$ emissions, and CO$_2$ uptake by land and ocean. We analyze these four time series as a multivariate (cointegrated) system. Statistical tests show that the four time series are cointegrated with rank three and identify anthropogenic CO$_2$ emissions as the single stochastic trend driving the nonstationary dynamics of the system. The three cointegrated relations correspond to the physical relations that the sinks are linearly related to atmospheric concentrations and that the change in concentrations equals emissions minus the combined uptake by land and ocean. Furthermore, likelihood ratio tests show that a parametrically restricted error-correction model that embodies these physical relations and accounts for the El-Ni\~no/Southern Oscillation cannot be rejected on the data. Finally, projections based on this model, using Shared Socioeconomic Pathways scenarios, yield results consistent with established climate science. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.09226 |
| By: | Michael Haylock; Martin Karlsson; Maksym Obrizan |
| Abstract: | Economic growth in Sweden during the early 20th Century was largely driven by industry. A significant contributor to this growth was the installation of different kinds of engines used to power factories. We use newly digitized data on engines and their energy source by industry sector, and combine this with municipality-level data of workers per industry sector to construct a new variable reflecting economic output using dirty engines. In turn, we assess the average externality of dirty output on mortality in the short-run, as defined by deaths over the population in the baseline year. Our results show substantial increases of up to 17% higher mortality in cities where large increases to dirty engine installations occurred, which is largely driven by the elderly. We also run a placebo test using clean powered industry and find no effect on mortality. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.01532 |
| By: | Gaël Giraud (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Paul Valcke (GEJP - Georgetown Environmental Justice Program [Washington] - GU - Georgetown University [Washington]) |
| Abstract: | Abstract Designing policy for global warming requires an integrated analysis of the interplay between the economy and the environment. The consensus is growing that, despite their dominance in the economics literature and their influence in public discussion and policymaking, the methodology employed so far by most Integrated Assessment Models (iams) ‘rests on flawed foundations' (Stiglitz et al. 2016). This is particularly worrisome in the face of the immense risks and challenges of global warming and the radical changes in our economies that an effective response requires. This paper introduces an alternative paradigm, IDEE (Integrated Dynamics Environment-Economy), based on coupling a medium-size climate model with nonlinear, out-of-equilibrium, stock-flow-consistent macroeconomic dynamics in continuous time. IDEE allows for multiple economic steady states, endogeneous business cycles, endogenous growth, corporate default, and the short- and long-run assessment of various mitigation and adaptation policies. We argue that this approach is suitable for providing insights into managing the transition to net-zero emissions and coping with damages induced by the ecological crisis. |
| Abstract: | L'élaboration d'une politique de lutte contre le réchauffement climatique nécessite une analyse intégrée de l'interaction entre l'économie et l'environnement. Il est de plus en plus admis que, malgré leur domination dans la littérature économique et leur influence dans le débat public et l'élaboration des politiques, la méthodologie employée jusqu'à présent par la plupart des modèles d'évaluation intégrée (MEI) « repose sur des bases erronées » (Stiglitz et al. 2016). Ceci est particulièrement inquiétant face aux risques et défis immenses du réchauffement climatique et aux changements radicaux de nos économies qu'une réponse efficace requiert. Cet article présente un paradigme alternatif, IDEE (Integrated Dynamics Environment-Economy), basé sur le couplage d'un modèle climatique de taille moyenne avec une dynamique macroéconomique non linéaire, hors équilibre, cohérente avec les flux de stocks en temps continu. IDEE permet des états stables économiques multiples, des cycles économiques endogènes, une croissance endogène, des défaillances d'entreprises et l'évaluation à court et à long terme de diverses politiques d'atténuation et d'adaptation. Nous soutenons que cette approche est adaptée à la gestion de la transition vers des émissions nettes nulles et à la gestion des dommages induits par la crise écologique. |
| Keywords: | climate change, extreme risk, market imperfections, climate policy, integrated assessment, stock-flow consistency |
| Date: | 2023–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:hal-04872596 |
| By: | Angelos Alamanos; Olympia Nisiforou; Lydia Papadaki; Phoebe Koundouri |
| Abstract: | The Global Climate Hub (GCH) has been developed under the United Nations Sustainable Development Solutions Network (UN SDSN). It is an international research-led initiative for tackling complex sustainability challenges. The SDSN GCH develops national and regional pathways (optimal dynamic and spatial mixture of policies, technologies, and fiscal and financial instruments) for the transition to climate neutrality and climate resilience, using a holistic and interdisciplinary methodology: We co-design pathways for climate resilience and neutrality with stakeholders, based on the integration of downscaled climate scenarios with science-based national and regional systems modelling (energy, land and marine use systems, health and socioeconomics systems). The approach is aided by an open-access AI-driven data gathering, aggregation and visualization platform, various innovation accelerators and a training and education unit, aimed at strengthening stakeholder involvement and capacity. The work of the GCH is the result of the coordination of nine distinct research units, covering a wide range of expertise in digital applications, climate science, land, water, food, biodiversity, and marine and maritime systems, energy and decarbonization, land and maritime transport, public health, solutions� application, policy, finance, labour markets, participatory approaches, education and training. The coordinated work of these nine units provides a unique approach of holistically addressing all levels of the human-environmental interface for providing truly sustainable solutions tailored per case study or region. In this presentation, we describe for the first time how maritime operations are seen as a part of a broader sustainability framing of the nine research units of the GCH. First, the importance of "Data, Platforms and Digital Applications" (unit 1) in modelling sustainable maritime operations is outlined. Then, the actual modelling is briefly presented (unit 3), combining the use of climate change projections (unit 2), and the optimal maritime operations, considering energy-fuels-emissions models (unit 4), as well as the economy and finance tools to ensure a just transition (unit 7). Moreover, their interactions and impacts on "environment and public health" (unit 5) are discussed. To bridge science to practical application and policy, and ensure the long-term implementation, we present the role of: the "Transformative and Participatory Approaches" (unit 8) to co-design solutions with stakeholders; the "Innovation/ Acceleration" unit 6, to practically implement these solutions� and the "Education, Training, Upskilling and Reskilling" (unit 9), to develop the necessary expertise for the stakeholders to own and manage the solutions. This approach comprehensively addresses all aspects of human-environment interaction, providing comprehensive and long-lasting sustainable solutions. |
| Keywords: | MaritimeGCH, Global Climate Hub, Sustainability, Shipping, Sustainable maritime operations, Model integration |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2513 |
| By: | Daniel Thompson; Gianluca Pescaroli; Maham Furqan |
| Abstract: | This study examines historical relationships between Public Safety Power Shutoffs (PSPS) events enacted by California's investor-owned utilities (IOUs), at the system and sub-system levels, along with other disruptions to macro electricity systems. This study contributes to understanding the balance between system-wide resilience goals, such as wildfire hazard mitigation, and sub-system-level priorities, such as minimizing the frequency and duration of localized disruptions. Focusing on circuit-level data from 2018 to 2023 as a proxy for sub-systems, we evaluate differences in outage frequency, duration, and customer impact across three major IOUs in California. Results highlight a differentiation between 'higher impact' de-energization events, which have occurred less frequently, and circuits impacted frequently but with lower customer or duration impacts. Study outcomes suggest that resilience, from the perspective of PSPS events, may be more temporal, which in this case is driven by infrastructure and planning investments by IOUs. Future work aims to incorporate socio-demographic factors, including urban-rural divide, to identify further opportunities to enhance resilience at the circuit and sub-circuit levels. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.13413 |
| By: | Serge Tomasi (MEAE - Ministère de l'Europe et des Affaires étrangères) |
| Abstract: | The fight against climate change is an emblematic public good that has been at the top of the international agenda for many years. Since 1992, the United Nations Conferences of the Parties (COPs) have laid down principles to guide international action and have approved commitments, particularly of a financial nature. These principles include the additionality of climate finance to official development assistance (ODA), the common but differentiated responsibilities of the States party to the Convention, and the "polluter pays" rule. A key element in getting developing countries to sign up to the climate agreements, particularly low-income countries (LICs) and small island developing states (SIDS), has been the commitment to annual financial transfers from industrialised countries to developing countries (DCs) to offset the additional costs incurred by the ecological transition. [...] |
| Keywords: | Climate change, Development financing, COP, Official development assistance ODA |
| Date: | 2024–11–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04818129 |
| By: | Eric Aries (European Commission - JRC); Georgios Chronopoulos (European Commission - JRC); Frauke Schorcht (European Commission - JRC); Serge Roudier (European Commission - JRC) |
| Abstract: | The Best Available Techniques (BAT) Reference Document for the Smitheries and Foundries Industry (SF BREF) is part of a series of documents presenting the results of an exchange of information between EU Member States, the industries concerned, non-governmental organisations promoting environmental protection, and the Commission, to draw up, review and – where necessary – update BAT reference documents as required by Article 13(1) of Industrial Emissions Directive 2010/75/EU. This document is published by the European Commission pursuant to Article 13(6) of the Directive. The BREF for Smitheries and Foundries covers smitheries with hammers the energy of which exceeds 50 kilojoule per hammer, where the calorific power used exceeds 20 MW, ferrous metal foundries with a production capacity exceeding 20 tonnes per day, non-ferrous metal foundries, with a melting capacity exceeding 4 tonnes per day for lead and cadmium or 20 tonnes per day for all other metals and a number of other activities specified in the Scope of the document. The BREF consists of six main chapters. Chapter 1 provides general information, the applied processes and techniques and the current consumption and emission levels for Smitheries. Chapter 2 provides general information, the applied processes and techniques and the current consumption and emission levels for Foundries. Chapter 3 provides information on techniques to consider in the determination of BAT for smitheries and foundries. Chapter 4 presents the BAT conclusions as defined in Article 3(12) of the Industrial Emissions Directive (2010/75/EU). Chapter 5 provides information on emerging techniques. Concluding remarks and recommendations for future work are presented in Chapter 6. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc140209 |
| By: | Otaviano Canuto Hinh T. Dinh Karim El Aynaoui Hafez Ghanem Badr Mandri |
| Abstract: | This policy brief was originally published on T20 India website A decade of poor growth, increased poverty, and political instability followed the serious debt difficulties that emerged worldwide in the 1980s. There are concerns that the looming debt crisis could create similar challenges and result in even more severe consequences. However, the current economic climate differs in many ways from that of the 1980s, when international banks and Paris Club creditors held most of the external debt. Today, the profile of creditors is more diverse, and the mechanisms established by the G20 and multilateral development banks to address this new crisis are partly based on outdated approaches that are no longer effective in adapting to new realities. As a result, a more holistic and integrated approach is required to address the challenges of external debt faced by developing countries, particularly in Africa. Such an approach should take into account the issue of over-indebtedness while also addressing climate protection, the most pressing issue of the 21st century. A promising solution to tackling these challenges could be a new debt reduction initiative focused on climate action. This policy brief recommends a ‘Debt Relief for Climate Initiative’ that will link debt reduction with investments in climate adaptation and mitigation projects. |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbtrad:pbnn_31 |
| By: | Tiziano De Angelis; Caio C\'esar Graciani Rodrigues; Peter Tankov |
| Abstract: | We study a problem of optimal irreversible investment and emission reduction formulated as a nonzero-sum dynamic game between an investor with environmental preferences and a firm. The game is set in continuous time on an infinite-time horizon. The firm generates profits with a stochastic dynamics and may spend part of its revenues towards emission reduction (e.g., renovating the infrastructure). The firm's objective is to maximize the discounted expectation of a function of its profits. The investor participates in the profits and may decide to invest to support the firm's production capacity. The investor uses a profit function which accounts for both financial and environmental factors. Nash equilibria of the game are obtained via a system of variational inequalities. We formulate a general verification theorem for this system in a diffusive setup and construct an explicit solution in the zero-noise limit. Our explicit results and numerical approximations show that both the investor's and the firm's optimal actions are triggered by moving boundaries that increase with the total amount of emission abatement. |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2412.00986 |
| By: | Donatella Gatti (CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord, Université Sorbonne Paris Nord); Imen Ghattassi (CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord); Gaye-Del Lo (CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord); Malo Mofakhami (LIRSA - Laboratoire interdisciplinaire de recherche en sciences de l'action - CNAM - Conservatoire National des Arts et Métiers [CNAM], CEET - Centre d'études de l'emploi et du travail - CNAM - Conservatoire National des Arts et Métiers [CNAM] - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - Ministère du Travail, de l'Emploi et de la Santé); Sandra Rigot (Université Sorbonne Paris Nord); Julien Vauday (CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Date: | 2024–11–28 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04812528 |
| By: | Serge Tomasi (MEAE - Ministère de l'Europe et des Affaires étrangères) |
| Abstract: | La lutte contre le changement climatique constitue un bien public emblématique, au sommet de l'agenda international depuis de longues années. Depuis 1992, les Conférences des Parties des Nations unies (COP) ont posé des principes devant guider l'action internationale et ont approuvé des engagements, notamment financiers. Ces principes concernent notamment l'additionnalité de la finance climat au regard de l'aide publique au développement (APD), la responsabilité commune mais différenciée des États parties à la convention, et la règle du « pollueur-payeur ». Un élément clé pour l'adhésion des pays en développement aux accords climat, notamment les pays à faible revenus (PFR) et les petits États insulaires en développement (PEID), a été l'engagement de transferts financiers annuels des pays industrialisés vers les pays en développement (PED) pour compenser les coûts additionnels induits par la transition écologique. |
| Keywords: | Changement climatique, Finance climat, Financement du développement durable, Financement du développement |
| Date: | 2024–11–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04779614 |
| By: | Cormac Lynch; Yeliz Simsek; Jean-Francois Mercure; Panagiotis Fragkos; Julien Lefèvre (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Thomas Le Gallic (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique); Kostas Fragkiadakis; Leonidas Paroussos; Dimitris Fragkiadakis; Florian Leblanc; Femke Nijsse |
| Abstract: | A net zero transition is likely to generate substantial and irreversible economic transformation. High-carbon industries and their related occupations will disappear, while new low-carbon industries and occupations will be created. In the aggregate, the impact of the transition on GDP and employment is commonly projected to be relatively moderate. However, such estimates hide drastic distributional issues that are sectorally and regionally concentrated. We use three sectorally detailed and regionally disaggregated macroeconomic models to explore the possible levels and impacts of structural change in a well below 2°C scenario. In addition to the expected decline in the carbon-intensive industries, we observe secondary impacts, particularly in the services sectors, that vary significantly between models. The risks entailed with structural change involve worsening economic disparity and societal division that could exacerbate existing socioeconomic and political polarisation. Impact assessments of decarbonisation should consider such distributional issues to avoid post-industrial decline and widening socioeconomic inequalities. |
| Keywords: | Structural change, Post-industrial decline, Multi-sectoral macroeconomic modelling, Climate policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04824037 |
| By: | Antoine Missemer (CNRS - Centre National de la Recherche Scientifique, CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - ENPC - École nationale des ponts et chaussées - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | À l'occasion de la parution du n°4 de la revue 'Transitions : les nouvelles Annales des ponts et chaussées', cet article revient sur quelques leçons à tirer de l'historiographie récente en matière d'économie de l'environnement pour la transition écologique au XXIe siècle. Deux exemples sont brièvement exposés : celui de la formation des préférences pour l'étude des choix des consommateurs, et celui du débat croissance verte vs. décroissance. Il en ressort que regarder vers le passé peut aussi être source d'inspiration pour construire la recherche et les politiques publiques du futur. |
| Keywords: | histoire de la pensée économique, transition écologique, croissance verte, décroissance |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04841497 |
| By: | Oussama Tayebi; Sabrine Emran |
| Abstract: | Ce papier a été initialement publié sur legrandcontinent.eu À bas bruit, plusieurs pays africains sont en train de monter dans la chaîne de valeur des véhicules électriques. Terrain de bataille de la rivalité sino-américaine sur les matières critiques, l’Afrique pourrait trouver dans la nouvelle fragmentation mondiale des chaînes d’approvisionnement une opportunité. Étude de cas depuis la République démocratique du Congo. Les perturbations successives des chaînes d’approvisionnement durant la décennie 2010 et les premières années de la décennie 2020 ont incité les décideurs politiques et économiques, notamment aux États-Unis et en Europe, à réfléchir à des moyens pour atténuer les risques associés à une forte dépendance vis-à-vis d’un nombre limité de fournisseurs, en particulier la Chine... |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:pbnn_41 |
| By: | USDA Office of the Chief Economist |
| Abstract: | Excerpt from the report Introduction: This report assesses the current state of carbon markets and provides foundational information to determine the establishment of a Greenhouse Gas Technical Assistance Provider and Third Party Verifier Program at the U.S. Department of Agriculture (USDA). It begins with an overview of current carbon credit markets and activities related to forestry and agricultural carbon credit generation. It then provides information on the supply and demand for carbon credits; descriptions of protocols and registries and other systems used to generate carbon credits; a summary of quantification and accounting methods; an assessment of barriers to entry into carbon markets; and options to address these barriers. Finally, the report discusses opportunities for other voluntary markets outside of voluntary environmental credit markets to foster the trading, buying, or selling of credits that are derived from activities that provide other ecosystem service benefits, including activities that improve water quality, water quantity, wildlife habitat enhancement, and other ecosystem services. |
| Keywords: | Agricultural and Food Policy, Climate Change, Crop Production/Industries, Demand and Price Analysis, Environmental Economics and Policy, Land Economics/Use, Livestock Production/Industries, Resource /Energy Economics and Policy |
| Date: | 2023–10 |
| URL: | https://d.repec.org/n?u=RePEc:ags:usdami:349044 |