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on Energy Economics |
By: | Penelope Ann Mealy; Ganslmeier, Michael; Stephane Hallegatte |
Abstract: | Although the feasibility of introducing climate policies underpins global efforts to curb climate change, there has been limited analysis estimating the likelihood of introducing specific policies in different country contexts. Drawing on a dataset of climate policies introduced globally over the past 50 years, this paper explores patterns in climate policy adoption to quantify policy feasibility across countries. In constructing a ‘Climate Policy Space’ network based on the co-occurrence of policies across countries, the paper shows that climate policy adoption is path-dependent: countries are significantly more likely to introduce policies that are related to their prior climate policymaking experience. Exploiting this finding, the paper constructs empirically validated ‘Climate Policy Feasibility Frontiers’ which identify policies that are likely to be more feasible and could also increase the probability of the adoption of other policies. Complementing traditional cost-benefit analysis, feasibility frontiers can inform more realistic and strategic climate policy prioritization across countries. |
Date: | 2025–03–31 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11094 |
By: | Héctor M. Núñez; Adán L. Martínez-Cruz; Jaime Sainz-Santamaría |
Abstract: | Mexico City, that boasts the first place in electricity consumption among urban centers in the country, is actively advancing its energy transition by promoting renewable energies and tapping into its potential for solar and bio-energy. As households in emerging economies drive global energy demand, this study explores preferences of Mexico City's residents. Using a discrete choice experiment, 940 residents were presented with energy contracts featuring renewable energy sources, green job creation in the energy sector, renewable energy percentages in the energy mix, and electricity prices. Estimates reveal that respondents are willing to pay a 19.5% premium over the average price per kilowatt-hour if the energy source were exclusively solar and created 1000 green jobs. These findings offer insights for other megacities with similar challenges and renewable potential in pursuing a just energy transition. |
Keywords: | Renewable energies;just energy transition;green jobs;middle-income households;Mexico City |
JEL: | Q42 Q48 Q51 |
Date: | 2025–04 |
URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2025-05 |
By: | Karymshakov , Kamalbek (Kyrgyz-Turkish Manas University); Azhgaliyeva , Dina (Asian Development Bank) |
Abstract: | Low-carbon energy transition, which includes the replacement of fossil fuels with low-carbon energy infrastructure, the removal of subsidies, and other measures, requires households to be able to pay for low-carbon energy services. Economic shocks such as the coronavirus disease pandemic and high inflation make paying for energy challenging for households. We use the Kyrgyz Integrated Household Survey data (2019–2021) to study the impact of income decline on energy consumption. We provide the following key results. First, the empirical results show that the effects of income decline on household energy consumption vary (positive or negative) according to income group. Second, the low-income group with income decline reduced energy consumption, while the higher income group (second quartile) increased energy consumption. |
Keywords: | household energy consumption; coal consumption; fossil fuel consumption; income decline; Central Asia; energy transition |
JEL: | Q31 Q41 Q48 |
Date: | 2025–04–04 |
URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0773 |
By: | Qiaoyi Chen (Fudan University); Nicholas Ryan (Yale University); Daniel Yi Xu (Duke University) |
Abstract: | We study carbon offsets sold by firms in China under the Clean Development Mechanism (CDM). We find that offset-selling firms, meant to cut carbon emissions, instead increase them by 49% after starting an offset project. In a model of firm investment decisions and offset review, we estimate that CDM firms increase emissions due to both the selection of higher-growth firms into projects (35 pp) and because offset projects themselves boost firm growth and therefore emissions (14 pp). The CDM reduces global surplus by causing damages from increased emissions four times greater than private gains from trade in the offset market. |
Date: | 2025–03–18 |
URL: | https://d.repec.org/n?u=RePEc:cwl:cwldpp:2434 |
By: | Kaitila, Ville; Kuusi, Tero; Pajarinen, Mika; Wang, Maria |
Abstract: | Abstract This study examines the impacts of the European Union’s Carbon Border Adjustment Mechanism (CBAM) on corporate costs, adaptation strategies, and international trade. CBAM aims to supplement the EU’s emissions trading system and mitigate the risk of carbon leakage. The report evaluates the effects of CBAM’s initial phase and anticipates its future significance for Finnish enterprises. Through the use of gravity modeling, the study distinguishes the effects of CBAM from other trade-influencing factors. Furthermore, companies were surveyed regarding the administrative expenses incurred by CBAM and its influence on value chains. Findings indicate that CBAM decreases imports of covered products from non-EU countries and promotes intra-EU procurement. The system’s complexity and associated costs are deemed particularly burdensome for small businesses. |
Keywords: | Carbon leakage, Carbon border adjustment mechanism, Gravity model, Survey, Administrative cost |
JEL: | Q38 |
Date: | 2025–04–15 |
URL: | https://d.repec.org/n?u=RePEc:rif:report:162 |
By: | Gessner, Johannes; Habla, Wolfgang; Rübenacker, Benjamin; Wagner, Ulrich J. |
Abstract: | Many European companies face the challenge of lowering CO2 emissions from their company car fleets. A promising lever is to increase the notoriously low electric usage of Plug-in Hybrid Electric Vehicles (PHEVs). This paper examines whether home charging infrastructure can help achieve these goals. We leverage quasi-experimental variation in the delivery and installation of home chargers to quantify the impact of this technology on energy use and CO2 emissions of PHEV company cars held by 856 employees of a large German company. Since fuel and electricity expenditures for these cars are covered by the employer, home charging mainly changes the non-monetary costs to an employee. We find that access to home charging increases electricity consumption by 317.9 (±23.3) kWh per quarter and decreases fuel consumption by 97.97 (±36.5) liters, reducing CO2 emissions by 38%. Moreover, access to home charging increases the employee's propensity to choose a Battery Electric Vehicle (BEV) upon renewal of the lease by 28.4 (±25.6) percentage points. We use these estimates to compute the private levelized abatement costs of home chargers for a range of scenarios characterizing the diffusion of BEVs and the effect of the program on vehicle choice. With current tax-inclusive energy prices, home chargers break even for the company within eight to 16 years. |
Keywords: | home charging, charging infrastructure, plug-in hybrid and battery electric vehicles, company cars |
JEL: | D12 L91 Q52 R42 |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:zbw:zewdip:315495 |
By: | Peng, Liqun; He, Gang; Lin, Jiang |
Abstract: | China has pledged to peak its carbon emissions by 2030 and achieve carbon neutrality by 2060. Decarbonizing the power system is key to achieving these targets. Pumped hydropower storage (PHS) can play a crucial role in greening China’s power system, by providing both short- and long-term energy storage, facilitating the integration of renewable energy, and maintaining grid stability. It's critical to evaluate the role of PHS in a power system with a high penetration of renewable energy sources and the amount of PHS needed to support the stability and reliability of a decarbonized power system. Our results indicate that the current PHS target (120 GW) is sufficient to balance the electricity supply and demand in the foreseeable future. However, the capacity of battery storage will witness a substantial increase between 2025 and 2050, emerging as a more economical solution to address the variability of renewable energy and accommodate demand growth. This study suggests that over-investment in PHS could lead to unnecessary electricity price inflation. Introducing market competition through an open and competitive bidding process for PHS development can more effectively control project costs and, consequently, electricity tariffs. |
Date: | 2024–02–08 |
URL: | https://d.repec.org/n?u=RePEc:cdl:agrebk:qt5s56m1rm |
By: | Mattias Nasman; Grace Ballor |
Abstract: | In the second half of the twentieth century, the car industry became a lightning rod for debates about human contributions to climate change. Widespread motorisation galvanised the green movements of the 1960s and 1970s, regulators increasingly demanded the use of pollution and climate mitigation technologies, and carmakers responded to this changing consumer and regulatory environment by gradually observing stricter emissions standards and innovating away from combustible engines at the turn of the millennium. This paper traces the arc of the relationship between car manufacturing and climate change through a business historical lens, from the development of internal combustion engines and their alternatives to the political economy of an energy transition and the decision to prioritise electric vehicles. Our analysis aims to lay a foundation for further research on industry and climate change. |
Keywords: | environmental history, business history, automakers, regulation, climate governance |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:bcu:greewp:greenwp24 |
By: | Valentina Bosetti; Italo Colantone; Catherine E. De Vries; Giorgio Musto |
Abstract: | This narrative review delves into the politics of climate policy, with specific focus on the so-called "green backlash". That is, rising resistance by voters, parties, and governments to the climate transition. We start by reviewing the literature on the political consequences of climate policies. The evidence points to a green backlash among citizens negatively affected by the decarbonization transition. Populist right forces emerge as main beneficiaries of the backlash. They tend to be more skeptical regarding anthropogenic climate change and less supportive of climate policies. Their electoral success has negative implications for countries' climate policy making and performance. Finally, we draw insights from the literature to reflect on what can be done to improve the political sustainability of climate policies. |
Keywords: | Climate policies; green backlash; right-wing populism |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:bcu:greewp:greenwp26 |
By: | Taisuke Imai (The University of Osaka); Davide Pace (LMU Munich); Schwardmann Peter (Carnegie Mellon University); van der Weele Joel (University of Amsterdam) |
Abstract: | Policy makers frequently champion information provision about carbon impact on the premise that consumers are willing to mitigate their emissions but are poorly informed about how to do so. We empirically test this argument and reject it. We collect an extensive new dataset and find both large misperceptions of the carbon impact of different consumption behaviors and clear preferences for mitigation. Yet, in two separate experiments, we show that correcting beliefs has no effect on consumption in large representative samples. Our null results are well-powered and informative, as we target information for maximal impact. These results call into question the potential of correcting carbon footprint misperceptions as a tool to fight climate change. |
Keywords: | climate change; carbon emissions; information provision; consumer behavior; |
JEL: | C81 C93 D84 Q54 |
Date: | 2025–04–01 |
URL: | https://d.repec.org/n?u=RePEc:rco:dpaper:529 |
By: | Bursens Floore; De Poli Silvia; Maier Sofia (European Commission - JRC); Verbist Gerlinde |
Abstract: | This paper explores the distributive impact of a hypothetical carbon tax on households' transport and energy consumption in Belgium. It focuses on the welfare effects across population groups and along the income distribution, as well as on the expected budgetary and environmental effects, accounting for consumer responses under a partial equilibrium microsimulation framework. Given the well-known regressive features of consumption taxes in general, and of energy- or carbon-related taxes in particular, this study evaluates various methods for making the carbon tax more progressive and assesses how these methods affect the overall distributional outcomes. We assess both the expected results as well as the feasibility of each of the tax design scenarios, considering the effect on household income and its distribution vis-a-vis the expected reduction in greenhouse gas emissions. |
Date: | 2025–03 |
URL: | https://d.repec.org/n?u=RePEc:ipt:taxref:202501 |
By: | Pere Suau-Sanchez; Frédéric Dobruszkes; Giulio Mattioli |
Abstract: | This study evaluates the effectiveness of airport slot reductions as a strategy for mitigating greenhouse gas (GHG) emissions, focusing on Amsterdam Schiphol Airport. Following the Dutch Government’s decision to reduce slots from 500, 000 to 440, 000, we analyse various risk scenarios using the D’Hondt method for proportional slot allocation and the Fuel Estimation in Air Transportation (FEAT) model to estimate fuel consumption. Strategies include proportional slot cuts, prioritising short-haul flights, and shifting to rail alternatives. Results show that short-term emissions reductions are modest and do not scale with slot reductions unless long-haul flights are significantly curtailed. Moreover, aircraft up-gauging could lead to increased emissions if airline behaviour is not addressed. Our findings challenge the effectiveness of slot reductions as a climate strategy, highlighting the importance of targeting long-haul flights and adopting comprehensive policies to achieve substantial emissions reductions. The study offers critical insights for sustainable aviation policy development. |
Keywords: | Airport slots; Airport capacity; Aviation sustainability; Demand management; Amsterdam Airport |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/389974 |
By: | Christoph Hambel; Frederick Van Der Ploeg |
Abstract: | We analyze the effects of policy transition risk on asset pricing and the green transition using a global two-sector, macro-finance model of climate and the economy. Policy transition risk results from probabilistic changes between three policy states: no, modest, and ambitious carbon pricing. We show that policy transition risk leads to carbon premiums (i.e. higher expected returns on brown than on green assets), especially if the economy is still quite carbon-intensive and close to the temperature cap, and thus accelerate the green transition. Increased transition risk leads to more precautionary saving and falls in the risk-free rate. We offer extensions to deal with physical risks (temperature-related risk of climate disasters and climate tipping), technology transition risk, and more realistic policy tipping with endogenous transition probabilities. |
Date: | 2025–03–27 |
URL: | https://d.repec.org/n?u=RePEc:oxf:wpaper:1075 |
By: | Goran Dominioni; Isabelle Rojon; Rico Salgmann; Dominik Englert; Cáit Gleeson; Sotiria Lagouvardou |
Keywords: | Environment-Adaptation to Climate Change Environment-Climate Change Mitigation and Green House Gases Environment-Environmental Strategy |
Date: | 2023–06 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:39876 |
By: | World Bank |
Keywords: | Energy-Power & Energy Conversion Energy-Renewable Energy Environment-Adaptation to Climate Change |
Date: | 2023–06 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:39858 |
By: | Jesus Fernandez-Villaverde; Yiliang Li; Le Xu; Francesco Zanetti |
Abstract: | We examine the rise of dark shipping – oil tankers disabling AIS transceivers to evade detection – amid Western sanctions on Iran, Syria, North Korea, Venezuela, and Russia. Using a machine learning-based ship clustering model, we track dark-shipped crude oil trade flows worldwide and detect unauthorized ship-to-ship transfers. From 2017 to 2023, dark ships transported an estimated 7.8 million metric tons of crude oil monthly – 43% of global seaborne crude exports – with China absorbing 15%. These sanctioned flows offset recorded declines in global oil exports but create distinct economic shifts. The U.S., a net oil exporter, faces lower oil prices but benefits from cheaper Chinese imports, driving deflationary growth. The EU, a net importer, contends with rising energy costs yet gains from Chinese demand, fueling inflationary expansion. China, leveraging discounted oil, boosts industrial output, propagating global economic shocks. Our findings expose dark shipping’s central role in reshaping oil markets and macroeconomic dynamics. |
Keywords: | dark shipping, oil sanction, satellite data, clustering analysis, LP |
JEL: | C32 C38 E32 Q43 R40 |
Date: | 2025–02 |
URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-12 |
By: | Letz, Carolin; Rode, Johannes; Römer, Daniel |
Abstract: | Heat pumps are a key technology for decarbonising domestic heat. In the past 10 years, sales of heat pumps have grown considerably in Germany and Europe. There are regional differences and heat pumps already have a very high market share particularly in northern Europe. This study examines the factors in play and analyses the influence of the relative electricity price on the diffusion of heat pumps. The empirical findings suggest that the electricity-to-gas price ratio is a relevant lever for strengthening the diffusion of heat pumps in Germany and Europe. Survey data from the KfW Energy Transition Barometer support this result, as households themselves also mention cost-effectiveness as a major factor for their use. This opens up options – particularly for a country like Germany, which also manufactures heat pumps. |
Date: | 2025–02–20 |
URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:153404 |
By: | Grimaud, André; Rougé, Luc |
Abstract: | Technical progress is considered a key element in the ght against climate change. It may take the form of technological breakthroughs, that is, shocks that induce signicant leaps in the stock of knowledge. We use an endogenous growth framework with directed technical change to analyze the climate impact of such shocks. Two production subsectors coexist: one subsector is fossil-based, using a non-renewable resource, and yields carbon emissions; the other subsector uses a clean, renewable resource. At a given date, the economy benets from an exogenous technology shock. We fully characterize the general equilibrium and analyze how the shock modies the economys trajectory. The overall e¤ect on carbon emissions basically depends on the substitutability between the production subsectors, the initial state of the economy, and the nature and size of the shock. We notably show that green technology shocks induce higher short-term carbon emissions when the two subsectors are gross complements, but also in numerous cases when they are gross substitutes. |
Keywords: | directed technical change; endogenous growth; technology shocks; climate; change |
JEL: | O33 O44 Q32 Q54 Q55 |
Date: | 2025–04–04 |
URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:130495 |
By: | World Bank; Energy Charter Secretariat |
Keywords: | International Economics and Trade-Foreign Direct Investment Energy-Renewable Energy |
Date: | 2023–07 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40087 |
By: | Fikru, Mahelet G (Missouri University of Science and Technology); Ahmed, Bruktawit (Missouri University of Science and Technology); Daher, Wassim |
Abstract: | This study uses a two-stage game theoretic approach to derive and characterize optimal decarbonization policies, focusing on emission taxes and carbon capture and storage (CCS) subsidies. By maximizing a welfare function, the government first selects policy instruments, while carbon-intensive firms subsequently determine production levels and abatement efforts to maximize profit. The derived optimal policies are then analyzed through Monte Carlo simulations to assess their variability and sensitivity under different scenarios. Key findings are: (1) Emission tax and CCS subsidies are strategic substitutes where pollution damage governs this relationship, (2) The optimal policy mix could be a tax-only regime if carbon intensity exceeds a given threshold, otherwise the optimal policy mix either includes both instruments (if pollution damage is large enough) or is a subsidy-only regime (if pollution damage is not very large), (3) Optimal subsidies are relatively more variable than optimal emission taxes, and (4) Certainty in production and market parameters does not reduce optimal policy variability, but shifts the focus towards subsidies rather than taxes. These results highlight the need for flexible and adaptable decarbonization policies in dynamic markets with evolving technologies. |
Date: | 2025–03–27 |
URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:t2bzw_v1 |
By: | World Bank |
Keywords: | Energy-Energy Conservation & Efficiency Energy-Energy Consumption Energy-Energy Policies & Economics |
Date: | 2023–08 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40239 |
By: | Lackner, Klaus; Arcusa, Stephanie; Azarabadi, Habib; Sriramprasad, Vishrudh; Page, Robert |
Abstract: | Life cycle analysis (LCA) is deeply embedded in carbon accounting. LCA is valuable for qualitatively understanding technologies’ environmental footprints. However, ambiguities and insatiable data requirements make it ill-suited for quantitative analysis. Fortunately, accounting without LCA is possible, for example, by demanding that for every ton of carbon coming out of the ground, another ton must be sequestered. This “Carbon Takeback Obligation” (CTBO) policy would eliminate the need for tracking carbon through supply chains. With all supply chains already carbon balanced, it is sufficient to quantify the amount of carbon sequestered without subtracting upstream emissions. Our modeling shows that once full carbon neutrality is demanded, market forces alone will eliminate counterproductive sequestration technologies, approaches that release more CO2 than they store. Complications arise during the transition where some carbon extraction is not yet balanced out by sequestration, as under some policies, counterproductive technologies could be introduced solely to game the system. We explore the economics of four transition pathways: a simple CTBO, a CTBO combined with permits required for all unbalanced carbon, a CTBO combined with a futures market, and permit-future hybrid schemes. A simple CTBO that does not add an economic burden on unmitigated carbon would incentivize low-cost, counterproductive technologies. Contrastingly, a CTBO policy that includes permits and/or futures will render such technologies uneconomical at any point in the transition. A policy with controlled futures would allow for rapid permit phaseout. Hybrid systems could lessen the initiation shock and bridge the transition time when market demand exceeds sequestration capacity. |
Date: | 2023–02–17 |
URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:q9pzb_v1 |
By: | Pietro Calice; Dimitri G Demekas |
Keywords: | Macroeconomics and Economic Growth-Fiscal & Monetary Policy Macroeconomics and Economic Growth-Fiscal Adjustment |
Date: | 2023–07 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40067 |
By: | Andreas Gerster (Johannes-Gutenberg University, Germany); Manuel Frondel (RWI – Leibniz-Institut für Wirtschaftsforschung, Germany); Kathrin Kaestner (RWI – Leibniz-Institut für Wirtschaftsforschung, Germany); Michael Pahle (Potsdam Institute for Climate Impact Research, Germany); Puja Singhal (Potsdam Institute for Climate Impact Research, Germany) |
Abstract: | Premium programs are seen as a politically attractive substitute for Pigouvian taxes to establish incentives for energy conservation, particularly when energy prices are high. Using an incentive-compatible survey experiment with almost 4, 500 participants, this paper analyzes consumers’ uptake of a savings premium paid when a household reaches a pre-defined energy conservation target. We find that the financial benefit of a savings premium motivates only 11 percent of households to opt for it. 42 percent of households never take part, irrespective of generous premium payments of up to 1, 500 euros. The remaining households prefer the conditional payment under the premium program to an equally large unconditional amount, which indicates that they use the premium program as a commitment device. Our findings challenge the view that premium programs and taxes are equivalent resource conservation policies. In particular, they imply that generous premium programs will be largely ineffective. |
Keywords: | Energy conservation, commitment devices, goal setting, savings premium |
JEL: | D12 D91 Q41 |
Date: | 2025–03–20 |
URL: | https://d.repec.org/n?u=RePEc:jgu:wpaper:2504 |
By: | Ireri Hernandez Carballo; Gian Maria Mallarino; Marco Percoco |
Keywords: | EU ETS, Carbon policies, CO2 Emissions, Regional Economics, Economic Geography |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:bcu:greewp:greenwp27 |
By: | Marzouk, Osama A. |
Abstract: | Using observation records of wind speeds from weather stations in the Sultanate of Oman between 2000 and 2023, we compute estimators of the two Weibull distribution parameters (namely, the Weibull distribution's shape parameter and the Weibull distribution's scale parameter) in 10 weather station locations within eight Omani governorates. The 10 weather station locations in Oman and their corresponding governorates are Seeb (in Muscat), Salalah (in Dhofar), Buraimi (in Al Buraimi), Masirah (in Ash Sharqiyah South), Thumrait (in Dhofar), Sur (in Ash Sharqiyah South), Khasab (in Musandam), Sohar (in Sohar), Fahud (in Az Zahirah), and Saiq (in Ad Dakhiliyah). The obtained wind speed distributions at these weather stations are then used to predict the annual energy production (AEP) for a proposed reference amount of 1 MWp of wind turbine capacity, and this specific AEP is designated here by the term “normalized annual energy production (NAEP).” The direction of the wind is also analyzed statistically over the same period to identify the more probable wind directions. Four locations were clearly distinguishable as being windy compared to the others. The simulated probability of exceeding a feasible 6 m/s (21.6 km/h) wind speed in these locations is 41.71% in Thumrait, 37.77% in Masirah, 29.53% in Sur, and 17.03% in Fahud. The NAEP values in these four locations are estimated as 1.727 GWh/MWp/year, 1.419 GWh/MWp/year, 1.038 GWh/MWp/year, and 0.602 GWh/MWp/year; respectively. The wind in the location of Thumrait is not only the fastest (on average) among the selected locations, but also the most unidirectional, blowing almost always from the south–south-east (SSE) direction; and both features make this non-coastal location in southern Oman, with an altitude of about 467 m, an attractive site for utility-scale wind farms. We also statistically analyze wind data in the port city of Duqm; and we show that the simulated probability of exceeding 6 m/s wind speed there is 24.04%, the estimated NAEP there is 0.927 GWh/MWp/year, and the wind direction there is approximately blowing from the south–south-west (SSW) direction most of the time. When compared to photovoltaic (PV) solar energy systems, onshore wind turbine systems with the same installed capacity appear to be less effective in Oman. This study closes a gap in the field of wind energy where no similar standardized NAEP as the one we propose is present. |
Date: | 2025–03–17 |
URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:8jvcn_v1 |
By: | Christian Scharrer (University of Augsburg, Department of Economics); Johannes Huber (University of Regensburg, Department of Economics) |
Abstract: | We study the effects of different financing rules for untargeted energy price brakes and subsidies on intergenerationalwelfare in a large-scale overlapping generations model. The results indicate that, in comparison to a laissez-faire solution without any government interventions, debt-financed implementations of such measures are very detrimental for young and future generations. However, the taxation of windfall profits can significantly contribute to reduce the economic burdens of these generations, whereas the positive effects on older generations are much less pronounced. |
Keywords: | Fiscal Policy, Price Brakes, Price Subsidies, Energy Crisis, Welfare |
JEL: | E62 E30 H20 H30 |
Date: | 2023–08 |
URL: | https://d.repec.org/n?u=RePEc:aug:augsbe:346 |
By: | Behnaz Minooei Fard; Giovanni Di Bartolomeo; Willi Semmler |
Abstract: | This study analyzes the dynamics of the global rare earth element (REE) market, with a focus on China's dominant role as the primary supplier, which is crucial for the energy transition and digitalization. Using a game-theoretic approach, the research examines a potential duopoly market structure that may emerge over time, as well as potential shifts in supply from China to other countries in this scenario. It considers China’s low marginal costs and factors like resource extraction and discoveries. Additionally, the study examines the strategic market interactions, the role of technological advancements, and policy support in shaping market outcomes. The methodology incorporates the assumption that agents have limited foresight and use a learned value function to strategically assess outcomes based on their own and others' actions while accounting for environmental constraints. |
Keywords: | Rare earth elements; Game theory; Duopoly; Known reserves dynamics; Policy support; Relative scarcity; NMPC; Reinforcement learning |
JEL: | C61 C7 Q3 |
Date: | 2025–04 |
URL: | https://d.repec.org/n?u=RePEc:sap:wpaper:wp260 |
By: | Atsuki Kotani |
Abstract: | The technical change from steam engines to electric motors dramatically transformed manufacturing activities during the Second Industrial Revolution. This paper explores how this technical change progressed and what consequences it brought for the evolution of economic geography. I hypothesize that electric motors powered by purchased electricity lowered barriers to entry in the manufacturing sector due to their significantly lower fixed costs compared to steam engines. To examine this hypothesis, I exploit the historical expansion of electricity grids in early 20th-century Japan and newly digitized establishment-level official records, including information on power sources of establishments. Descriptive evidence shows that electric motors were widely adopted by establishments of all sizes, whereas steam engines were primarily adopted by large establishments, indicating lower fixed costs of electric motors. Using hydropower potential as an instrument, I document that new entrants played a crucial role in driving this technical change and stimulating manufacturing activities. Overall, these findings lend substantial support for the hypothesis. Furthermore, I find that regions with earlier electricity access experienced substantial population growth throughout the early 20th century and exhibit larger economic activity even in the 21st century. These findings suggest a persistent impact of this technological shock: the rapid increase in entrant activities generated agglomeration forces in manufacturing, with accumulated effects still visible in the spatial distribution of economic activity today. |
Date: | 2025–03 |
URL: | https://d.repec.org/n?u=RePEc:dpr:wpaper:1279 |
By: | Wang, Wenjun; Khanna, Nina; Liu, Xu; Lin, Jiang |
Abstract: | Measurement, Reporting, and Verification (MRV) is a systematic approach to tracking and documenting greenhouse gas (GHG) emissions and emission reductions. MRV can be used across all sectors and for all GHGs to track emissions patterns, evaluate programs, and promote transparency. As methane and other short-lived climate pollutants become critical to mitigating near-term climate change impacts, MRV systems become critical in improving emission inventories; facilitating the development of climate change policies and targets, and tracking and demonstrating progress towards sustainable development. This report focuses on current sectoral issues – including the emerging roles for satellites and remote sensing technologies - and international best practices in MRV policies and programs for non-carbon dioxide (CO2) GHGs including methane, nitrous oxide (N2O), and hydrofluorocarbons (HFCs) in specific sectors. Based on international best practices and a review of China’s current MRV system, we offer suggestions for a possible path forward for developing and implementing a stronger non-CO2 MRV system. |
Date: | 2023–12–14 |
URL: | https://d.repec.org/n?u=RePEc:cdl:agrebk:qt76j3p5df |
By: | Monica Barahona-Varon; Toker Doganoglu (University of Wuerzburg); Lukasz Grzybowski (University of Warsaw, Faculty of Economic Sciences) |
Abstract: | This paper examines Eurobarometer survey data from 27, 438 individuals across 28 EU Member States in 2019 to evaluate the awareness and impact of EU Energy Labels. Specifically, we analyze the role of socioeconomic characteristics such as age, gender, education, financial stability, and political engagement. Our results suggest that individual characteristics have a greater effect on the influence of labels on purchase decisions than on label awareness. However, significant heterogeneity across countries persists even after controlling for individual characteristics. Using our model, we conduct three exercises in which we assume a policymaker can either increase label awareness among all unaware individuals or target those with specific characteristics, and we demonstrate the resulting impact on the share of people whose purchases are influenced by the label. The findings reveal that even when label awareness is at its highest level, it does not necessarily translate into substantially higher influence on purchasing decisions in some countries. Additionally, at the country level, certain socioeconomic and political variables are positively correlated with label awareness. |
Keywords: | European Green Deal, Ecodesign Directive, Energy-efficiency |
JEL: | D12 Q41 Q48 C83 |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2024-25 |
By: | Delera, Michele; Mathew, Nanditha (Maastricht Graduate School of Governance, RS: GSBE MORSE, RS: GSBE MGSoG); Treibich, Tania (RS: GSBE MORSE, Macro, International & Labour Economics) |
Abstract: | The global fragmentation of production has important implications for the environment. As emerging economies increase their participation in trade, scale effects increase environmental impacts worldwide. Yet at the same time, access to international markets might help offset these impacts by increasing the efficiency of production. Existing literature suggests that trading firms tend to be more energy efficient than non-traders. However, this literature does not take into account the effect of firms’ product baskets. In this paper, we leverage a rich plantand product-level database from India to investigate the effects of importing on plant-level environmental outcomes. We first construct a measure of energy efficiency that is net of effects arising from plants’ product baskets. We then use an event study set up to compare outcomes between importers and future importers at the time of their entry into import markets. Our design takes advantage of plants’ staggered entry into importing to address issues of selection. Our findings suggest that after they start importing, plants experience increases in their energy intensity. Plants which start importing also grow larger and more productive, and diversify their product baskets. Our results suggest that access to international markets leads to gains in scale and productivity, but not in environmental performance. This finding suggests that there is an environmental cost to learning and product diversification. |
JEL: | D22 F10 F14 F18 O11 O33 |
Date: | 2025–03–31 |
URL: | https://d.repec.org/n?u=RePEc:unm:unumer:2025009 |
By: | Giorgio Musto; Marco Percoco |
Abstract: | The share of the population living in urban centres has vastly increased in recent decades, and is predicted to further expand in the future. In this context, research on the environmental impact of different urban environments, in terms of both the form and built-up structure of cities, is particularly important to understand whether smart urban design can help mitigate the nefarious impacts of climate change. This study aims at investigating relevant associations between urban form (and specifically, urban compactness) and carbon dioxide emissions of the residential and on-road transport sectors on a global scale. The study also employs a recently established, internationally comparable definition of "urban centre", which follows population-based criteria to eliminate bias from socio-cultural or administrative factors potentially determining city boundaries. The results show that lower levels of emissions of the residential and transport sectors occur in urban environments taking on more compact shapes especially in Africa and Asia, whereas the impact of urban compactness is found to be limited in Europe and North America. |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:bcu:greewp:greenwp25 |
By: | Kamath, Ram Mohan Sasikumar |
Abstract: | Given the adverse efects of climate change (such as drought and fooding, damage to ecosystems and infrastructure, depletion of resources, deterioration of human health), society needs to transition to using sustainable systems of production and consumption. Regions and countries increasingly view the creation of green-clusters that can nurture green-innovation and spur new green-industries, as a solution to this challenge. In fact, the formation of green-clusters, and the greening of existing industrial clusters has been identifed as an important tool to achieving the GHG-reduction goals of the European Green Deal. However, Green-clusters need not be intrinsically sustainable. Especially when green-clusters are derived from existing clusters, they will inherit unsustainable processes. This means before these clusters can help regions and nations transition, they must themselves transition to greener products and production techniques. The green-restructuring of clusters has become a key area of interest to Evolutionary Economic Geography; and to the emerging feld of Geography of Transitions, which bridges Evolutionary Economic Geography and Sustainability-Transition Studies. However, owing to extant cluster-evolution frameworks' and cluster-evolution studies' inability to settle still ongoing discussions regarding the development of clusters, scholarship risks falling behind policymakers. This thesis contributes to the resolution of some of these discussions. Most importantly, we address the debate regarding the dynamics behind the process of clusters' green-restructuring. We then address debates regarding the role of place-based structures in shaping cluster-evolution, the role of agency in shaping cluster-evolution, the role of proximitydimensions in shaping the greening of clusters, and the multiscalar nature of cluster-evolution. |
Keywords: | Climate Change, Environmental Economics and Policy, Research and Development/Tech Change/Emerging Technologies, Sustainability |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:ags:iamost:356433 |
By: | Shahidur R. Khandker; Douglas F. Barnes; Hussain A. Samad; Bonsuk Koo |
Keywords: | Energy-Electric Power Energy-Energy and Economic Development |
Date: | 2023–07 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40238 |
By: | Hilde C. Bjornland; Jamie L. Cross; Jonas Holz |
Abstract: | This paper examines how central banks respond to supply-side shocks and investigates the trade-offs they face in stabilizing inflation and output. To do so we develop a dual external instrument proxy structural vector autoregressive (SVAR) model to disentangle the macroeconomic effects of oil supply news and monetary policy shocks. Our identification strategy, which combines multiple external instruments with sign restrictions, enables a sharp distinction between structural shocks, allowing us to analyze their dynamic effects and construct policy counterfactuals for different central bank objectives. We find that both oil supply and monetary policy shocks significantly influence U.S. output and inflation. Moreover, while monetary policy can mitigate some of the output losses caused by oil price shocks, it cannot fully offset their inflationary effects. Finally, we estimate that the Federal Reserve’s historical response aligns closely with a policy that places twice as much weight on inflation stabilization than on output stabilization. |
Keywords: | proxy-SVAR, monetary policy instrument, oil price instrument, counterfactual analysis, monetary policy trade-offs |
JEL: | C32 E31 E43 Q41 Q43 |
Date: | 2025–04 |
URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-19 |
By: | Tanu Gupta (Indian Statistical Institute, New Delhi, India.); Md. Tajuddin Khan (Roanoke College, Salem, Virginia, United States.); Digvijay Singh Negi (Ashoka University, Sonepat, Haryana, India.) |
Abstract: | We study the linkages between electrification, activity participation and time use of individuals in rural Bangladesh. We find that households’ access to grid electricity positively correlates with the likelihood of males participating in non-farm work and females participating in agriculture. In electrified households, females reallocate time from domestic work and caregiving to more leisure and farming. Household access to electricity is positively associated with greater ownership of appliances like fans, refrigerators, televisions, and mobile phones. Moreover, we observe a greater likelihood of electrified households irrigating via electrical pumps and using female family labor on their farms. Electrification is also positively associated with women’s involvement in decisions regarding farm-related activities and household expenses. The findings suggest that in farming communities, agriculture may play a critical role in the link between rural electrification, women’s workforce participation, and household bargaining power. |
Date: | 2024–12–13 |
URL: | https://d.repec.org/n?u=RePEc:ash:wpaper:137 |
By: | Toker Doganoglu (University of Wuerzburg); Lukasz Grzybowski (University of Warsaw, Faculty of Economic Sciences); Joanna Rachubik (University of Warsaw, Faculty of Economic Sciences) |
Abstract: | In this paper, we analyze the determinants of individual’s willingness to pay higher prices and taxes and to reduce their standard of living to support environmental protection. Using data from the 2020 International Social Survey Programme (ISSP), Environment IV module from 26 countries on about 29, 000 individuals, we investigate the influence of socio-demographic factors, consumer behavior, environmental beliefs, opinions, and attitudes. The findings reveal significant variations in willingness to bear financial burdens for environmental protection across different countries and socio-economic groups. Our analysis highlights the critical role of education, religion, political affiliation, and trust in institutions in shaping environmental attitudes and behaviors. Moreover, after controlling for individual characteristics, significant international disparities persist, with countries like India showing exceptionally high willingness across all measures, while many European countries, despite their progressive environmental policies, show lower willingness for higher taxes due to possibly already high tax burdens. These findings underscore the importance of tailoring policy communications to different socio-economic groups, emphasizing both the immediate and long-term benefits of environmental protection to enhance acceptance among various demographic segments. |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2024-24 |
By: | Meyerrose, Anna M |
Keywords: | Social and Behavioral Sciences |
Date: | 2025–04–09 |
URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt2z517160 |
By: | World Bank |
Keywords: | Environment-Adaptation to Climate Change Information and Communication Technologies-ICT Applications |
Date: | 2023–08 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40222 |
By: | Lagemann, Andreas; Sacht, Stephen |
Abstract: | Currently, achieving sustainable transformation toward a carbon-dioxide-free industrial production process is one of the greatest challenges. The chemical element hydrogen used as an energy source and a basic feedstock can play an important role in reaching this goal. Our analysis is based on the CGE framework and focuses on a total switch toward hydrogen used in production in northern Germany until 2045. The simulation results indicate that such a cost-intensive procedure can lead not only to a negative development in regional GDP and employment but also to a decline in the output of heavy industries such as chemical, steel, and copper. Reverse effects are obtained in the case of further deregulation, which has the potential to increase the efficiency of an established hydrogen core network. This observation emphasizes the need to accompany the transformation process by maintaining low-level regulation. |
Abstract: | Die nachhaltige Transformation hin zu einem kohlendioxidfreien industriellen Produktionsprozess stelle eine große Herausforderung dar. Das chemische Element Wasserstoff kann als Energieträger und Rohstoff einen wichtigen Beitrag zur Erreichung dieses Ziels leisten. Unsere Analyse basiert auf einem CGE-Modell und konzentriert sich auf eine vollständige Umstellung der Produktion auf Wasserstoff in Norddeutschland bis 2045. Die Simulationsergebnisse zeigen, dass ein solch kostenintensiver Prozess nicht nur zu einer negativen Entwicklung des regionalen BIP und der Beschäftigung, sondern auch zu einem Rückgang der Produktion in der Schwerindustrie wie der Chemie-, Stahl- und Kupferindustrie führen kann. Umgekehrte Effekte ergeben sich bei einer weiteren Deregulierung, die das Potenzial hat, die Effizienz eines bestehenden Wasserstoff-Kernnetzes zu steigern. Diese Beobachtung unterstreicht die Notwendigkeit, den Transformationsprozess durch die Beibehaltung einer dezenten Regulierung zu begleiten. |
Keywords: | Computable General Equilibrium Model Analysis, Hydrogen Economy, Regional and Industrial Development, Northern Germany, Regulations |
JEL: | C68 O13 Q21 R13 |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:zbw:hwwiwp:315476 |
By: | Koppel, Oliver |
Abstract: | Die Stärke Deutschlands im globalen Patentwettbewerb bemisst sich nicht an jenen Patentanmeldungen, die hierzulande hervorgebracht werden, sondern vielmehr an jenen, die von Deutschland aus kontrolliert werden. Die industriepolitisch relevante Frage lautet folglich, wer als Global Ultimate Owner (finaler Eigentümer) eines Patents fungiert und in welcher Region der Welt demnach die zugehörigen Kontrollrechte liegen. In der Entstehungsperspektive vereint Deutschland aktuell zwar 16, 5 Prozent aller transnationalen Patentanmeldungen der Jahre 2017-2021 auf sich, in der Kontrollperspektive dagegen lediglich 14, 7 Prozent. Per Saldo verliert Deutschland folglich in einem relevanten Ausmaß hierzulande hervorgebrachte intellektuelle Eigentumsrechte an das Ausland. Eine in diesem Zusammenhang große Herausforderung für das deutsche Geschäftsmodell stellen Unternehmensübernahmen dar. Aktuell sind rund 4.400 verschiedene Unternehmen am Forschungsstandort Deutschland patentaktiv, die samt ihren Patenten von einem Global Ultimate Owner aus dem Ausland kontrolliert werden. Als unmittelbare Konsequenz befinden sich zum aktuellen Zeitpunkt rund 39.700 oder 26 Prozent aller in Deutschland hervorgebrachten transnationalen Patentanmeldungen in ausländischem Besitz, während rund 25.000 im Ausland entstandene Patentanmeldungen von Deutschland aus kontrolliert werden. Hinter den USA fließen die drittmeisten Patente bereits nach China ab. Angesichts der aktuellen geopolitischen Entwicklungen müssen nicht nur letztere, sondern auch erstere kritisch hinterfragt werden. Diesen Ergebnissen und auch der pessimistischen Stimmungslage zum Trotz behauptet Deutschland in zahlreichen Technologiebereichen trotz hoher Volumina der entsprechenden Patent-Weltmärkte einen hohen Anteil. Liegt eine derart dominante Position vor, so ist der zugehörige Weltmarkt stark von deutscher Technologie abhängig. Insbesondere im Maschinen- und Fahrzeugbau kontrolliert Deutschland zahlreiche wichtige Technologie, so bei Maschinen aus den Bereichen Druck, Landwirtschaft und Bearbeitung von Werkstoffen, bei Schienenfahrzeugen, aber auch im Bereich der Elektromobilität, etwa beim Laden des elektrifizierten Antriebsstrangs. Und auch in einigen Technologiebereichen der erneuerbaren Energien zählt Deutschland zur internationalen Spitze und kontrolliert beispielsweise 36 Prozent aller transnationalen Patentanmeldungen bei Windkraftanlagen sowie 32 Prozent bei Wärmepumpen. Besonders stark ausgeprägt ist die Abhängigkeit des Weltmarkts von deutscher Technologie bei Flüssigkristall-Materialien, die in Displays, optoelektronischen Bauelementen sowie polymeren Werkstoffen zum Einsatz kommen. Mit einem Anteil von 73 Prozent kontrolliert Deutschland in diesem Bereich nahezu drei Viertel aller transnationalen Patentanmeldungen weltweit. |
Abstract: | Germany's strength in global patent competition is not accurately measured by patent applications emerging from Germany, but rather by those that are actually controlled by Germany. The relevant question in terms of industrial policy is therefore who acts as the global ultimate owner of a patent and in which region of the world do the associated control rights lie. From a emergence perspective, Germany currently accounts for 16.5% of all transnational patent applications in the years 2017-2021, but only 14.7% from a control perspective. On balance, Germany is therefore losing a relevant amount of intellectual property rights generated in Germany to other countries. In this context, company takeovers represent a major challenge for the German business model. Currently, around 4, 400 different companies are patent-active in Germany as a research location, which are controlled by a global ultimate owner from abroad, together with their patents. As a direct consequence, around 39, 700 or 26 percent of all transnational patent applications generated in Germany are currently owned by foreign entities, while around 25, 000 patent applications generated abroad are controlled from Germany. After the USA, the third most patents already flow to China. In view of current geopolitical developments, not only the latter but also the former must be critically scrutinized. Despite these results and the pessimistic mood, Germany maintains a high share in numerous technology areas despite the high volumes of the corresponding global patent markets. With such a dominant position, the corresponding global market is heavily dependent on German technology. In mechanical engineering and vehicle construction in particular, Germany controls numerous important technologies, such as machines in the fields of printing, agriculture and the processing of materials, rail vehicles, but also in the field of electromobility, for example in the charging of electrified powertrains. Germany is also an international leader in some areas of renewable energy technology, controlling 36% of all transnational patent applications for wind turbines and 32% for heat pumps, for example. The global market is particularly dependent on German technology for liquid crystal materials, which are used in displays, optoelectronic components and polymer materials. With a share of 73 percent, Germany controls almost three quarters of all transnational patent applications worldwide in this area. |
JEL: | O31 O57 F20 |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:zbw:iwkrep:313656 |
By: | World Bank |
Keywords: | Environment-Air Quality & Clean Air Environment-Adaptation to Climate Change Urban Development-Urban Housing |
Date: | 2023–06 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:39872 |
By: | Linckens, Sarah; Horn, Carmen; Perret, Jens K. |
Abstract: | The sustainability trend of recent years is reflected in society's growing environmental awareness and the increasing promotion of green products and services in the market. The flip side is that most advertisements and green branding originate from companies that still have a negative impact on the environment. Therefore, it is necessary to understand how greenwashing marketing campaigns are perceived despite increasing environmental awareness in society. This study answers how greenwashing is perceived, whether the perception differs depending on the degree of environmental consciousness, and which effects the perception has. In order to answer these questions, a qualitative study via expert interviews with participants belonging to Gen Z has been conducted, making specific reference to the "Conscious Spring" greenwashing campaign by H&M. The qualitative content analysis showed that the majority of participants recognized greenwashing through misleading word choice and contradictory actions that are advertised in the campaign. Nevertheless, there were also interviewees who were misled by the campaign. The campaign had an effect on the participants' attitudes towards the brand, both on their feelings and beliefs about the brand, as well as on their behavioral intentions. The findings are largely used to understand the advertising impact of greenwashing, but they will also be helpful for sustainable clothing companies in creating green campaigns or for NGOs working to combat greenwashing and educate consumers. |
Keywords: | Clothing industry, Greenwashing, Perception, Generation Z, Advertising impact |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:zbw:ismwps:313087 |
By: | Axel Ockenfels (University of Cologne & Max Planck Institute for Research on Collective Goods, Bonn); David Bothe (Frontier Economics); Matthias Janssen (Frontier Economics) |
Abstract: | Gasspeicher sind ein zentraler Baustein für eine sichere Energieversorgung und damit für eine funktionierende Wirtschaft und Gesellschaft. Derzeit bietet der Markt jedoch kaum Anreize, die Gasspeicher zu nutzen oder in deren Erhalt zu investieren. Im Gegenteil: Seit November letzten Jahres beobachten wir negative Sommer-Winter-Spreads – das heißt, Gas ist im Sommer teurer als im Winter. Es lohnt sich also für Marktakteure nicht, im Sommer Gas für den Winter einzuspeichern, obwohl der Bedarf in der kalten Jahreszeit deutlich höher ist. Kernursache für dieses umgekehrte Preissignal sind die Füllstandsvorgaben, die mit dem Gasspeichergesetz in der Energiekrise 2022 eingeführt wurden. Sie verpflichten sowohl die Marktteilnehmer als auch letztlich die Marktgebietsverantwortliche THE („Trading Hub Europe“), im Sommer für den Winter einzuspeichern – unabhängig von den Preissignalen. Das Ergebnis ist, dass der Markt unter Berücksichtigung der regulatorischen Vorgaben Gas im Sommer als knapper ansieht als im Winter. Der negative Sommer-Winter-Spread spiegelt dies wider. Der staatliche Eingriff konterkariert damit die verbleibenden kommerziellen Anreize zur Einspeicherung im Sommer und erhöht damit den notwendigen Umfang und die Kosten weiterer Eingriffe zur Speicherbefüllung. In diesem Beitrag diskutieren wir die Vor- und Nachteile verschiedener politischer und regulatorischer Handlungsoptionen zur Lösung dieses Dilemmas. Dazu gehören die Aufhebung oder Flexibilisierung der Füllstandsvorgaben, der derzeit von der Bundesregierung, der Bundesnetzagentur und THE erwogene Subventionsmechanismus („Strategisches Befüllungsinstrument“), der die Einspeisung bei negativen Sommer-Winter-Spreads alimentiert, sowie eine Strategische Reserve, bei der ein Teil der Speicherkapazität staatlich befüllt und außerhalb von Krisensituationen vom Markt zurückgehalten wird. |
JEL: | Q41 Q48 D47 L95 H23 |
Date: | 2025–02 |
URL: | https://d.repec.org/n?u=RePEc:ajk:ajkpbs:066 |
By: | Wilson Kang; Russell Smyth; Joaquin Vespignani |
Abstract: | This paper applies the macroeconomic fragility framework for studying the effects of supply chain disruptions, proposed by Acemoglu and Tahbaz-Salehi (2024), to critical minerals markets. A key prediction of the macroeconomic fragility framework is that equilibrium supply chains are inherently fragile, meaning that even small shocks can trigger cascading supply chain breakdowns that can significantly magnify the discontinuous response of aggregate supply to shocks, leading to higher volatility and prices of critical minerals. We highlight the important role that the non-technical risk premium plays in magnifying global supply chain shocks in the specific case of critical minerals. Using a mixed-frequency Structural VAR model with agnostic sign restrictions and newly constructed data on non-technical risk premiums, we estimate the impact of supply chain disruption, the non-technical risk premium and their interaction on the prices and volatility of six critical minerals. We find that global supply chain disruptions, magnified by non-technical risk premiums, significantly increase critical mineral prices and price volatility for all six critical minerals studied, indicating inefficient outcomes which we interpret as macroeconomic fragility in critical minerals markets. We also show that stockpiling has the potential to reduce macroeconomic fragility in critical mineral markets. |
Keywords: | global supply chain disruption, critical minerals, non-technical risk premiums macroeconomic fragility |
JEL: | F62 Q43 Q30 |
Date: | 2025–04 |
URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-21 |
By: | Karsten Neuhoff; Fernanda Ballesteros; Till Köveker |
Abstract: | Die europäische Grundstoffindustrie muss investieren, um wettbewerbsfähig zu bleiben. Dabei steht sie vor einem Dilemma: Konventionelle Technologien gefährden die Klimaziele und bergen daher langfristige Risiken. Klimaneutrale Technologien kosten kurzfristig mehr und sind aktuell noch nicht wirtschaftlich. Der CO2-Preis des Europäischen Emissionshandels sollte eigentlich die Wirtschaftlichkeit klimaneutraler Technologien sichern. Um dabei internationale Wettbewerbsverzerrungen zu vermeiden, erhält die Grundstoffindustrie kostenlose Zertifikate im Emissionshandel, was jedoch zugleich die Wirtschaftlichkeit klimaneutraler Optionen verhindert. Der EU-Grenzausgleichsmechanismus soll daher anstelle der Ausnahmereglungen die CO2-Kostenunterschiede aus-gleichen und so Investitionen in klimaneutrale Optionen in Europa ermöglichen. Allerdings zeigt sich in der Umsetzung, dass hohe und langfristige internationale CO2-Preisunterschiede nicht aus-reichend ausgeglichen werden. Deswegen wird eine pragmatische Übergangslösung benötigt, um Wettbewerbsverzerrungen zu vermeiden, bis CO2 weltweit vergleichbar bepreist wird. Eine Kombi-nation aus drei Maßnahmen wird empfohlen: (1) Der EU-Emissionshandel und die kostenlose Zu-teilung von Emissionszertifikaten führen weiterhin zum CO2-Preis und setzen Anreize für Effizienz-steigerungen bei konventioneller Produktion. (2) Ausschreibungen von Klimaschutzverträgen sichern Investitionen in klimaneutrale Grundstoffproduktion ab. (3) Ein Clean-Economy-Beitrag, der auf heimische und importierte Grundstoffe erhoben wird, unterstützt effizienten Materialeinsatz und finanziert Klimaschutzverträge und andere Clean-Economy-Programme. |
Date: | 2025 |
URL: | https://d.repec.org/n?u=RePEc:diw:diwakt:114de |
By: | Philipp Heimberger (The Vienna Institute for International Economic Studies, wiiw) |
Abstract: | This paper provides a critical assessment of the new EU fiscal framework, with a focus on its implications for public expenditure on the twin green and digital transition. According to the reformed rules, member states may commit to a package of investment and reform to extend the fiscal adjustment path from four years to a maximum of seven years, provided the European Commission agrees that the package meets predefined criteria, including the contribution to EU priorities (in particular, the European Green Deal and the EU digital strategy). However, the reformed framework does not provide any broad-based exemption for public investment in the twin transition, although the necessary large expansion in public assets is rather unlikely, given the requirement to reduce public liabilities relative to output over the medium term. This implies that, if member countries want to increase green and digital public spending, they will have to make room for it either by restraining other spending items (e.g. social protection, health or education) or by increasing taxes. A major fiscal consolidation will be required in a number of (big) euro area countries from 2025 onwards to comply with the reformed EU fiscal rules. However, the temporary exemption for additional defence spending will make the overall fiscal stance in EU countries more expansionary than it would otherwise have been. There is now a political focus in the EU on industrialisation through rearmament. The pressure to go for additional deficit-financed defence spending will, however, eventually raise the share of government interest payments in total tax revenue, and the political aversion to higher fiscal deficits must be expected to exert downward pressure on public spending on the green and digital transition. Against that background, this paper discusses three options for how to boost the fiscal space for the required additional public spending on the twin transition implementing changes to key assumptions in the technical substructure of the new fiscal framework when it comes to assessing country-specific debt sustainability; expanding national co-financing of EU programmes; and introducing an EU investment fund for climate and digitalisation. |
Keywords: | Green transition, digital transition, EU fiscal rules, public investment, fiscal policy, austerity |
JEL: | H41 H54 H60 |
Date: | 2025–04 |
URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:94 |
By: | Engelmann, Tanja; Götz, Michelle; Weiler, Jessica; Würth, Anton |
Abstract: | The importance of energy-saving behaviour has become crucial due to recent negative events. The current empirical study investigates the factors that influence such behaviour. Hypotheses based on the revised theory of planned behaviour (Ajzen, 2020: 314f.) were formulated to examine the relationships between different influencing factors. An online questionnaire was used to gather data from 158 participants. The results widely confirmed the assumptions of the revised theory of planned behaviour. Among other results, the study showed that attitude towards energy-saving behaviour and the subjective norm significantly predict the intention to save energy. In addition, this intention explains energy-saving behaviour. |
Keywords: | Energieeinsparung, Faktorenanalyse, Befragung, Konsumentenverhalten, Deutschland |
Date: | 2024 |
URL: | https://d.repec.org/n?u=RePEc:zbw:ismwps:313090 |
By: | World Bank Group |
Keywords: | Energy-Energy Resources Development Energy-Energy and Environment |
Date: | 2023–08 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40264 |
By: | World Bank |
Keywords: | Macroeconomics and Economic Growth-Economic Conditions and Volatility Environment-Natural Disasters Macroeconomics and Economic Growth-Inflation |
Date: | 2023–07 |
URL: | https://d.repec.org/n?u=RePEc:wbk:wboper:40068 |