|
on Energy Economics |
| By: | Markus Dertwinkel-Kalt; Christian Wey |
| Abstract: | To support the green transition in the automotive sector, the EU has introduced CO2 emission performance standards, also known as the excess emissions premium (EEP) regulation, which will tighten until 2035. Manufacturers exceeding their average fleet emission targets must pay a penalty. The regulation also allows pooling of fleets, enabling manufacturers to combine fleets. We analyze how this affects market outcomes. The EEP creates a positive externality of electric on conventional cars. Pooling eases compliance but may weaken competition among existing market players, while simultaneously encouraging the entry of electric-only manufacturers into the EU. |
| Keywords: | green regulation, automotive industry, excess emissions premium |
| JEL: | D04 L11 L50 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11762 |
| By: | Thurner, Stefan; Borsos, András; Tabachová, Zlata (Complexity Science Hub); Diem, Christian (Institute for New Economic Thinking at the Oxford Martin School); Stangl, Johannes (Complexity Science Hub) |
| Abstract: | On the way towards carbon neutrality, climate stress testing provides estimates for the physical and transition risks that climate change poses to the economy and the financial system. Missing firm-level CO2 emissions data severely impedes the assessment of transition risks originating from carbon pricing. Based on the individual emissions of all Hungarian firms (410, 523), as estimated from their fossil fuel purchases, we conduct a stress test of both actual and hypothetical carbon pricing policies. Using a simple 1:1 economic ABM and introducing the new carbon-to-profit ratio, we identify firms that become unprofitable and default, and estimate the respective loan write-offs. We find that 45% of all companies are directly exposed to carbon pricing. At a price of 45 EUR/t, direct economic losses of 1.3% of total sales and bank equity losses of 1.2% are expected. Secondary default cascades in supply chain networks could increase these losses by 300% to 4000%, depending on firms' ability to substitute essential inputs. To reduce transition risks, firms should reduce their dependence on essential inputs from supply chains with high CO2 exposure. We discuss the implications of different policy implementations on these transition risks. |
| Keywords: | transition risks, climate stress testing, firm-level carbon emissions estimation, carbon pricing, EU ETS II, supply chain network contagion, firm-level production network, systemic risk, climate policy relevant sectors |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2025-04 |
| By: | J. Dunsmore; L. M. Arthur; R. S. Kemp |
| Abstract: | We estimate the variability of solar and wind energy generation potential in Europe over a 43 year period between 1980-2022 with the MERRA-2 reanalysis datasets. We compare the estimated supply potential to hourly demand data from 36 European countries to calculate the reliability of a highly renewable electricity grid in Europe. We find that in cost-optimised scenarios with onshore wind, solar and storage, but no natural gas, reliably meeting the last 1% of demand represents 36% of the entire system cost. Including small amounts of dispatchable natural gas drastically reduces the cost of a renewable, highly reliable grid: overall system costs fall by 31% when just 1% of total generation is permitted to come from natural gas. Large renewable overbuild factors (greater than $\times$4 peak demand) are required to meet modern grid reliability standards in all scenarios, and wind, rather than solar, dominates the generation mix. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2503.23604 |
| By: | Wadim Strielkowski |
| Abstract: | This paper focuses on assessing the potentials for the efficient low carbon development in green hydrogen and ammonia economy using an example of Ukraine as a case study. It describes the country prerequisites for the transition to renewable energy sources and outlines the ongoing green hydrogen projects. Moreover, it offers a comprehensive SWOT analysis of Ukraine engagement in the green hydrogen and ammonia economy. Furthermore, the paper employs a comprehensive bibliometric network analysis using a sample of 204 selected publications indexed in the Web of Science database. It is doing so by carrying out the network cluster analysis using the text data as well as the bibliometric data with the help of VOSViewer software. The results and outcomes might be helpful for researchers, stakeholders, and policymakers alike in devising effective strategies and policies aimed at rebuilding and recreating Ukrainian efficient low-carbon energy sector based on the renewable energy sources. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2503.22326 |
| By: | Christian Keuschnigg; Giedrius Kazimieras Stalenis |
| Abstract: | We study a small open economy that must implement an emissions reduction plan and eventually phase out fossil fuel. R&D leads to the design of energy saving new machines. Endogenous scrapping eliminates old inefficient machines. We identify two distortions that delay the adoption and diffusion of energy saving technology: scrapping of old equipment and investment in new machines are both too low. The optimal policy to manage the energy transition thus combines a carbon tax with a profit tax to speed up exit, and an investment subsidy to speed up investment in new equipment. The optimal policy increases capital turnover, the diffusion of energy saving technology, and thereby mitigates the costs of the energy transition. Compared to a policy that exclusively relies on carbon taxes, the optimal policy could reduce the GDP loss of moving to net zero from 7.8 to 6.1% of GDP. |
| Keywords: | energy saving innovation, vintage capital, emissions reduction |
| JEL: | D21 D62 H23 O33 Q41 Q43 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11722 |
| By: | Alona Zharova; Felix Creutzig |
| Abstract: | Intermittent renewable energies are increasingly dominating electricity grids and are forecasted to be the main force driving out fossil fuels from the grid in most major economies until 2040. However, grids based on intermittent renewables are challenged by diurnal and seasonal mismatch between supply of sun and wind and demand for electricity, including for heat pumps and electric two and four wheelers. Load management and demand response measures promise to adjust for this mismatch, utilizing information- and price-based approaches to steer demand towards times with high supply of intermittent renewables. Here, we systematically review the literature estimating CO$_2$ savings from residential load management in developing and developed nations. We find that load management holds high potential, locally differentiated with energy mix (including the respective share of renewables and fossils), climate zone, and the regulatory environment and price mechanism. Most identified studies suggest a mitigation potential between 1 and 20%. Load management becomes more relevant with higher shares of intermittent renewables, and when electricity prices are high. Importantly, load management aligns consumers' financial incentives with climate change mitigation, thus rendering accompanying strategies politically feasible. We summarize key regulatory steps to facilitate load management in economies and to realize relevant consumer surplus and mitigation potential. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.02811 |
| By: | Hochmuth, Philipp (Oesterreichische Nationalbank); Krusell, Per (Stockholm University); Mitman, Kurt (Stockholm University) |
| Abstract: | The EU has embarked on an ambitious path toward climate neutrality. How difficult will this transition be for the population as a whole and different subsets of consumers? This paper investigates this question using a dynamic general equilibrium model that captures a key feature of energy consumption: the relative energy content in one's consumption basket falls significantly as a function of one's relative income. Thus, poorer consumers are expected to be hit harder by the higher energy prices that we anticipate over the next few decades. In the model, energy---a complementary input to capital and labor---can be produced either using fossil fuel or a "green'' technology. We represent the EU policy in terms of a tax on fossil fuel and show that the European Commission's Fit-for-55 package implies a 168% tax on the fossil-based technology. The output losses from this tax are substantial, and GDP is 9.3% lower in the new steady state. The burden falls primarily on the poor agent who is 50% more worse off than the rich agent. The output losses can be compensated for if the economy achieves a 1.49% annual increase in energy efficiency as outlined in the Fit-for-55 package. |
| Keywords: | inequality, green transition, Fit-for-55 |
| JEL: | E61 Q43 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17861 |
| By: | Mr. Christian Bogmans; Patricia Gomez-Gonzalez; Ganchimeg Ganpurev; Mr. Giovanni Melina; Mr. Andrea Pescatori; Sneha D Thube |
| Abstract: | The development and deployment of large language models like ChatGPT across the world requires expanding data centers that consume vast amounts of electricity. Using descriptive statistics and a multi-country computable general equilibrium model (IMF-ENV), we examine how AI-driven data center growth affects electricity consumption, electricity prices, and carbon emissions. Our analysis of national accounts reveals AI-producing sectors in the U.S. have grown nearly triple the rate of the private non-farm business sector, with firm-level evidence showing electricity costs for vertically integrated AI companies nearly doubled between 2019-2023. Simulating AI scenarios in the IMF-ENV model based on projected data center power consumption up to 2030, we find the AI boom will cause manageable but varying increases in energy prices and emissions depending on policies and infrastructure constraints. Under scenarios with constrained growth in renewable energy capacity and limited expansion of transmission infrastructure, U.S. electricity prices could increase by 8.6%, while U.S. and global carbon emissions would rise by 5.5% and 1.2% respectively under current policies. Our findings highlight the importance of aligning energy policies with AI development to support this technological revolution, while mitigating environmental impacts. |
| Keywords: | generative AI; data centers; energy and the macroeconomy; climate change and growth; CGE models |
| Date: | 2025–04–22 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/081 |
| By: | Schmitz Andreas (European Commission - JRC); Schade Burkhard (European Commission - JRC); Garaffa Rafael (European Commission - JRC); Keramidas Kimon (European Commission - JRC); Dowling Paul (European Commission - JRC); Fosse Florian (European Commission - JRC); Diaz Ana; Russ Peter (European Commission - JRC); Weitzel Matthias (European Commission - JRC) |
| Abstract: | "This study examines the impacts of enhancing technology progress in clean energy technologies on the global energy system and economy. The analysis focuses on eight thematic technology groups, including wind, solar, batteries, hydrogen and fuel cells, carbon capture, direct air capture and synfuels, biofuels, and heat pumps. Two policy scenarios are considered: a 2°C scenario with stringent carbon policies and a Reference scenario driven primarily by market forces.The study examines the technology adoption patterns within each technology group for the two scenarios, highlighting the differences in the evolution of costs, capacities and production. Moreover, the study analyses the overall impacts in terms of CO2 reduction, investment needs and energy supply costs of enhanced learning within each technology group, as well as for combining enhanced learning across multiple technology groups. The results show that enhanced learning can lead to significant reductions in greenhouse gas emissions, investment needs, and energy supply costs. Moreover, enhanced learning results in favourable in socio-economic outcomes (e.g. economy-wide investments, consumption and energy prices). However, the study suggests that enhancing technology progress is not at all a substitute for stringent climate policies to reduce CO2 emissions." |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc140568 |
| By: | Lavinia Heisenberg; Richhild Moessner |
| Abstract: | A key element in the transition to net zero carbon emissions is increasing the use of renewable energy, especially wind and solar energy, and scaling up energy storage sustainably to enable their greater use. This paper discusses the advantages and challenges of scaling up renewable energy storage with increased development and use of sodium ion batteries, and the role for green technology policy in addressing the externalities associated with these challenges. Sodium ion batteries can be built without the use of lithium and cobalt, in contrast to commonly used lithium ion batteries, thereby avoiding large environmental and social costs associated with mining of lithium and cobalt. There are externalities in building a recycling system for sodium ion batteries, since its components are not very valuable. Moreover, there are network externalities in building large-scale grid storage infrastructure, for which sodium ion batteries are suitable. Due to these externalities, there is a role for green technology support policies in helping to scale up renewable energy storage with sodium ion batteries. |
| Keywords: | energy storage, renewable energy, batteries, energy grid infrastructure, externalities, green technology policies, sustainability, climate change. |
| JEL: | Q00 Q48 Q58 Q40 Q50 Q55 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11803 |
| By: | Huntington, Hillard |
| Abstract: | Electrifying household and economic activity remain a cornerstone of the transition towards deep decarbonization. This analysis conducts a cross-country evaluation through a pooled mean-group model based upon 33 OECD nations since 1980. Electrification is defined as electricity’s share of the total energy system. The results show that electrification would have decreased by approximately 13 to 31 percent below other countries if the electricity price level had increased above other countries by 100 percent. Additional sensitivities show that symmetry between this response between price increases and price decreases depends upon whether GDP is exogenous. These estimates highlight the critical importance of finding new generation, transmission and distribution technologies that both reduce emissions and remain cost competitive. They also emphasize that any successful transition pathway must price electric power competitively based upon the opportunity costs of providing power. Efforts to bundle costly social programs and other expenses into power prices should be avoided. |
| Keywords: | OECD electrification; electricity prices; cross-country panel analysis |
| JEL: | C23 L94 L98 Q41 Q48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124376 |
| By: | Ansari, Dawud; Gehrung, Rosa Melissa; Pepe, Jacopo Maria |
| Abstract: | Central Asian economies, particularly Kazakhstan and Uzbekistan, are pursuing increasingly ambitious goals for renewable energy. Apart from China - an established player in the market - it has increasingly been Gulf countries that have been implementing respective projects, particularly Saudi Arabia and, to a lesser extent, the United Arab Emirates (UAE). Both China and Gulf countries seem to have found a cooperative approach that is based on sharing the Central Asian market along the value chain. This approach could be a blueprint for future Gulf-China relations, which have become relevant for global politics. Simultaneously, the dynamics also exemplify the growing number of energy and geopolitical dynamics over which Europe has little influence. For the European Union (EU) and Germany, the developments serve as a reminder: While intra-Asian dynamics are gaining importance, Germany and the EU risk being marginalised in matters concerning energy, climate, and geopolitics - and not just in Central Asia. In response, a more consistent Central Asia strategy is required, alongside a constructive and non-ideological approach towards relations with the Arab Gulf States. |
| Keywords: | Kazakhstan, Uzbekistan, China, Saudi Arabia, United Arab Emirates (UAE), EU, Germany, Central Asian market, Gulf-China relations, energy, geopolitical dynamics, ACWA Power Renewable Energy Holding, PowerChina, hydrogen, carbon capture and storage, climate technologies, fossil fuels, green energy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:315531 |
| By: | Samuel Rosenow; Alvaro Espitia; Ana Margarida Fernandes |
| Abstract: | Addressing climate change requires green technology deployment. This paper uses firm-level import data in 35 emerging markets to examine how trade policies affect firms’ imports of products associated with solar, wind power, and electric vehicle value chains. Panel estimates show a particularly negative effect of tariffs on green value chain imports compared to average imports, especially in solar and downstream segments. This effect is pervasive from import values and quantities to import probabilities, with undiversified firms most affected. Import regulations have smaller, varied impacts. Emerging markets should avoid protectionist policies, as local firms depend on imports to adopt green technologies. |
| Keywords: | imports, green value chains, trade policy, tariffs, non-tariff measures, firm-level imports, decarbonization value chains, green technology adoption, trade and environment, green technologies |
| JEL: | F13 F14 L11 O19 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11726 |
| By: | Bryan Campbell; Michel Magnan; Robert Normand; Elizabeth Labonté; Léo Lamy-Laliberté |
| Abstract: | According to a recent report by KPMG International, success in achieving global and national carbon neutrality targets depends greatly on cities' climate risk management decisions and actions. According to some estimates, emissions from municipal services account for around 3% of a community's total emissions. The management of carbon neutrality by the municipal administration can have a significant knock-on effect on the population and the private sector in general. In this report, the authors propose a “dashboard of carbon emissions” resulting from activities specific to the management of a city. This includes Scope 1 emissions, i.e., those directly related to the organization (essentially, emissions resulting from fuel use by municipal vehicles, waste and residual materials management and industrial activities that could be carried out by a city) and Scope 2 emissions, i.e., those resulting from energy consumption (electricity and gas) by an organization's physical infrastructure (buildings). Four cities representative of the major categories of Quebec municipalities were selected: Trois-Rivières, Victoriaville, Varennes and Nicolet. Their analyses show that carbon intensity per dollar spent is conditional on some strategic choices: use of electricity or natural gas for building heating, use of electric or gas-powered vehicles, selective waste collection and management with or without composting obligation. Other dimensions, such as the size of the municipality, may also have an effect on the carbon intensity of spending, but measuring their impact would have required a larger sample. The authors identify four main issues that could affect the reliability of carbon emissions measurement: 1) the traceability of the carbon intensity of municipal activities through the financial information system; 2) the availability of carbon intensity when municipal activities are outsourced; 3) the conditioning or treatment applied in solid waste or wastewater management; and 4) the accounting classification itself. Selon un récent rapport de KPMG International, le succès dans l’atteinte des cibles mondiales et nationales de carboneutralité repose en grande partie sur les décisions et actions des villes en matière de gestion des risques climatiques. Selon certaines estimations, les émissions émanant des services offerts par l’administration municipale représentent environ 3 % des émissions totales d’une collectivité. La gestion de la carboneutralité par l’administration municipale peut avoir un effet d’entraînement important sur la population et le secteur privé en général. Dans ce rapport, les auteurs proposent un « tableau de bord des émissions de carbone » découlant des activités propres à la gestion d’une ville. Sont incluses les émissions de portée 1, soit celles qui relèvent directement de l’organisation (essentiellement, les émissions découlant de l’utilisation de carburant par les véhicules municipaux, de la gestion des déchets et matières résiduelles et des activités industrielles qui pourraient être conduites par une ville) et les émissions de portée 2, soit celles découlant de la consommation d’énergie (électricité et gaz) par l’infrastructure physique (immeubles) d’une organisation. Quatre villes représentatives des grandes catégories de municipalités québécoises ont été retenues : Trois-Rivières, Victoriaville, Varennes et Nicolet. Leurs analyses révèlent que l’intensité carbone par dollar dépensé est conditionnelle à certains choix stratégiques : utilisation d’électricité ou de gaz naturel pour le chauffage des bâtiments, utilisation de véhicules électriques ou à essence, collecte et gestion de déchets sélective avec ou sans obligation de compostage. D’autres dimensions, comme la superficie de la municipalité, peuvent également avoir un effet sur l’intensité carbone des dépenses, mais la mesure de leur impact aurait nécessité un échantillonnage plus grand. Les auteurs identifient quatre principaux enjeux susceptibles d’affecter la fiabilité de la mesure des émissions de carbone : 1) la traçabilité de l’intensité carbone des activités municipales à travers le système d’information financière ; 2) la disponibilité de l’intensité carbone lorsque les activités municipales sont externalisées ; 3) le conditionnement ou le traitement appliqués dans la gestion des déchets solides ou eaux usées ; et 4) la classification comptable elle-même. |
| Keywords: | Dashboard, greenhouse gases (GHG), emissions, municipalities, financial policy, Tableau de bord, gaz à effet de serre (GES), émissions, municipalités, politique financière |
| Date: | 2025–04–29 |
| URL: | https://d.repec.org/n?u=RePEc:cir:cirpro:2025rp-13 |
| By: | Beaufils, Timothé; Jakob, Michael; Kalkuhl, Matthias; Richter, Philipp M.; Spiro, Daniel; Stern, Lennart; Wanner, Joschka |
| Abstract: | • Durch die Verringerung der Abhängigkeit von fossilen Energieträgern kann die EU-Klimapolitik die Finanzkraft Russlands deutlich verringern und damit dessen militärische Fähigkeiten zur Fortführung der Aggression gegen die Ukraine und darüber hinaus einschränken. • Wir liefern Schätzungen für die Sicherheitsdividende der EU-Klimapolitik. • Eine Reduzierung des Ölverbrauchs in der EU um einen Euro führt zu einer sicherheitspolitischen Dividende von 37 Cent (zentrale Schätzung). • Allein auf der Grundlage der Sicherheitsdividende ist ein signifikanter CO2-Preis (zentrale Schätzung von 60 Euro pro Tonne CO2) auf den Ölverbrauch gerechtfertigt - zusätzlich zu den Vorteilen für Klima, Terms of Trade und lokale Gesundheit. • Eine ehrgeizige EU-Klimapolitik, die die Nachfrage nach Erdöl und Erdgas reduziert, sollte als wichtiger Pfeiler der europäischen Sicherheitsarchitektur gesehen werden, der Militärausgaben, diplomatische Bemühungen und die weitere Unterstützung der Ukraine ergänzt. |
| Abstract: | • By reducing reliance on fossil fuels, EU climate policy substantially lowers Russia's financial strength, thereby limiting its military capabilities to sustain its aggression on Ukraine and beyond. • We provide estimates for the security dividend of EU climate policy. • A one-euro reduction in oil consumption in the EU results in a security dividend of 37 cents (central estimate). • Based on the security dividend alone, a significant carbon price (central estimate of 60 euros per ton of CO2) on oil consumption is justified - in addition to its climate, terms-of-trade, and local health benefits. • Ambitious EU climate policy that reduces demand for oil and natural gas should be seen as an important pillar of the European security architecture, complementing military spending, diplomatic efforts, and continued support to Ukraine. |
| Keywords: | EU-Klimapolitik, Sicherheitsdividende, Russland, Ukraine, Verteidigungsausgaben, Geopolitische Externalität, EU climate policy, Security dividend, Russia, Ukraine, Defense spending, Geopolitical externality |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkpb:315746 |
| By: | Beaufils, Timothé; Jakob, Michael; Kalkuhl, Matthias; Richter, Philipp M.; Spiro, Daniel; Stern, Lennart; Wanner, Joschka |
| Abstract: | • By reducing reliance on fossil fuels, EU climate policy substantially lowers Russia's financial strength, thereby limiting its military capabilities to sustain its aggression on Ukraine and beyond. • We provide estimates for the security dividend of EU climate policy. • A one-euro reduction in oil consumption in the EU results in a security dividend of 37 cents (central estimate). • Based on the security dividend alone, a significant carbon price (central estimate of 60 euros per ton of CO2) on oil consumption is justified - in addition to its climate, terms-of-trade, and local health benefits. • Ambitious EU climate policy that reduces demand for oil and natural gas should be seen as an important pillar of the European security architecture, complementing military spending, diplomatic efforts, and continued support to Ukraine. |
| Abstract: | • Durch die Verringerung der Abhängigkeit von fossilen Energieträgern kann die EU-Klimapolitik die Finanzkraft Russlands deutlich verringern und damit dessen militärische Fähigkeiten zur Fortführung der Aggression gegen die Ukraine und darüber hinaus einschränken. • Wir liefern Schätzungen für die Sicherheitsdividende der EU-Klimapolitik. • Eine Reduzierung des Ölverbrauchs in der EU um einen Euro führt zu einer sicherheitspolitischen Dividende von 37 Cent (zentrale Schätzung). • Allein auf der Grundlage der Sicherheitsdividende ist ein signifikanter CO2-Preis (zentrale Schätzung von 60 Euro pro Tonne CO2) auf den Ölverbrauch gerechtfertigt - zusätzlich zu den Vorteilen für Klima, Terms of Trade und lokale Gesundheit. • Eine ehrgeizige EU-Klimapolitik, die die Nachfrage nach Erdöl und Erdgas reduziert, sollte als wichtiger Pfeiler der europäischen Sicherheitsarchitektur gesehen werden, der Militärausgaben, diplomatische Bemühungen und die weitere Unterstützung der Ukraine ergänzt. |
| Keywords: | EU climate policy, Security dividend, Russia, Ukraine, Defense spending, Geopolitical externality, EU-Klimapolitik, Sicherheitsdividende, Russland, Ukraine, Verteidigungsausgaben, Geopolitische Externalität |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkpb:315745 |
| By: | Fries, Steven |
| Abstract: | Decarbonization policies exhibit clear sequencing patterns within sectors and countries as well as across them. This paper explains these sequences using a Solow-Swan growth model with two distinguishing features. One is a variable elasticity of substitution production function with both fossil fuel–based and low carbon inputs. The second is a choice of decarbonization policy: a carbon price or low carbon investment subsidy. Their policy costs have significant macroeconomic impacts. One cost arises from a short-run tradeoff between decarbonizing productive activities and maintaining the level of output. There are also a second-round policy cost associated with the policy choice between a low carbon subsidy or a carbon price that varies with progress in decarbonization. The modeling shows how these policy costs can be managed by the observed policy sequence of a low carbon investment subsidy before a carbon price and initial use of this decarbonization policy in sectors where low carbon inputs are stronger substitutes for the incumbents. These macroeconomic explanations of observed decarbonization policy sequences complements others based on microeconomic considerations of efficiency in imperfect markets, distributional fairness, and economic interests in change. |
| Keywords: | aggregate productivity, climate change, climate policy, energy and growth, sustainable growth, technological change |
| JEL: | O33 O44 Q43 Q54 Q58 |
| Date: | 2023–11 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2023-26 |
| By: | Olga Chiappinelli; Ambrogio Dalò; Leonardo M. Giuffrida; Vitezslav Titl |
| Abstract: | Governments support the green transition through green public procurement. Using US data, this paper provides the first empirical analysis of the causal effects of green contracts on corporate greenhouse gas emissions and economic performance. We focus on an affirmative program for sustainable products, which represents one-sixth of the total federal procurement budget, and publicly traded firms, which account for one-third of total US emissions. Our results show that securing green contracts reduces emissions relative to firm size and increases productivity. We find no evidence that the program selects greener firms, nor that green public procurement sales crowd out private sales. |
| Keywords: | public procurement, environmental policy, firm performance, greenhouse gas emissions, R&D, recycled materials, staggered difference-in-difference |
| JEL: | D22 D44 H32 H57 Q53 Q54 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11696 |
| By: | Jean Chateau; Hugo Rojas-Romagosa; Sneha D Thube; Dominique van der Mensbrugghe |
| Abstract: | IMF-ENV is a global dynamic computable general equilibrium (CGE) model developed by the IMF's Research Department. The model features a database of 160 countries and regions, along with 76 sectors, and can be calibrated to a wide range of country-sector combinations. The model's general equilibrium structure, combined with its high level of detail, enables it to assess both direct and indirect domestic structural changes and cross-border spillover effects of policies. This makes it suitable for examining the medium- and long-term macroeconomic effects as well as structural shifts arising from national and/or global climate mitigation, energy, fiscal and trade policies. The model reports impact on macroeconomic variables, sectoral outcomes, employment and bilateral trade flows, along with detailed information for energy demand and supply, electricity generation and GHG emissions. |
| Keywords: | Computable general equilibrium models; energy transition; energy security; energy policies; climate policies; structural change; trade policies |
| Date: | 2025–04–11 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/077 |
| By: | Björn Bos; Moritz A. Drupp; Lutz Sager |
| Abstract: | Low emission zones (LEZ) represent a key environmental policy instrument to address air pollution in cities. LEZs have reduced air pollution and associated health damages in regulated areas, but it remains unclear who has benefited from cleaner air. To examine the distributional effects of LEZs, we combine gridded data on resident characteristics, including income and a proxy for ethnicity, with high-resolution estimates of fine particle (PM2.5) concentrations in Germany, the country with the highest number of LEZs. We estimate heterogeneous treatment effects with a difference-in-differences approach and show that PM2.5 pollution reductions are distributed unequally across society. While residents with German name origins experience larger improvements within LEZs, residents with foreign names disproportionately live in LEZs and thus benefit more when assessed at a nationwide scale. Monetizing air quality benefits following governmental guidance, we find that they are distributed pro-poor within LEZs, disproportionately benefiting lower-income residents. From a nationwide perspective, benefits are distributed almost proportionally although the sign is sensitive to how benefits from cleaner air scale with income. Overall, our results suggest that LEZs have nuanced distributional implications that differ sharply between a national perspective and local assessments that focus on effects within LEZs. |
| Keywords: | air pollution, distributional effects, low emission zones, traffic regulation |
| JEL: | J15 Q52 Q53 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11739 |
| By: | Philipp Ludwig |
| Abstract: | The international shipping sector is a vital part of the global trading system but also a large emitter of carbon dioxide emissions. In the absence of a multilateral carbon policy for the shipping sector, different countries are starting to impose unilateral measures to decarbonize maritime trade. This paper investigates the impact of unilateral policy on global carbon emissions and welfare by introducing heterogeneous transport technology to a quantitative model of trade. The framework emphasizes the role of transport providers which allocate clean and dirty vessels to shipping routes and thereby determine trade flows, transport costs and emissions in the entire network. Unilateral policy interferes with the allocation process by altering the cost of transport or restricting port access to specific vessel types. Using unique data on ship-level fuel consumption and network traffic, I study the impact of upcoming unilateral policy in the EU. I find that carbon taxes can achieve sizeable emission savings as long as the supply of transport services is sufficiently elastic. Emission savings, however, are not large enough to compensate for lower levels of trade, resulting in an aggregate loss of welfare. |
| Keywords: | carbon emissions, container shipping, transport network, unilateral policy |
| JEL: | F18 R12 R13 R41 H23 Q52 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11712 |
| By: | Immervoll, Herwig (OECD, Paris); Linden, Jules (LISER (CEPS/INSTEAD)); O'Donoghue, Cathal (National University of Ireland, Galway); Sologon, Denisa Maria (LISER (CEPS/INSTEAD)) |
| Abstract: | We assess household burdens from a carbon tax with revenue recycling, comparing them to burdens from price changes during the recent cost-of-living crisis. We focus on Lithuania, an OECD country that attained high-income status a decade ago, and that recently enacted a €60/ton CO2 carbon tax despite a challenging policy context, with high poverty rates and concerns about the affordability of energy. Households spend large parts of their budget on energy, but the impact of the carbon tax on overall cost of living is modest (3% on average), substantially smaller than the impact of inflation between 2021-24 (36%). Direct carbon-tax burdens, from higher fuel prices, fall disproportionately on lower-income households. But indirect effects, from higher prices of goods other than fuel, are sizeable and broadly “flat” across the income distribution, which dampens regressivity. We simulate seven different options for compensating households by recycling carbon-tax revenues back to them through transfers or by lowering other taxes. When carefully designed, revenue recycling allows considerable scope for cushioning burdens, and for addressing concerns about disproportionate costs for some groups of households and voters. |
| Keywords: | carbon pricing, revenue recycling, inflation, inequality |
| JEL: | C8 D12 D31 H23 Q52 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17826 |
| By: | Bulut, Hamid; Samuel, Robin |
| Abstract: | An increasing number of countries are considering implementing domestic carbon taxes to achieve the carbon-reduction targets set in the Paris Agreement. However, introducing such taxes presents significant challenges for policymakers worldwide. Despite their effectiveness, carbon taxes remain the least popular policy instrument. Furthermore, few studies focus on public support for carbon taxation in low- and middle-income countries, a crucial area of research given the global significance of their emissions. Therefore, we conducted a pre-registered full factorial survey experiment involving more than 13, 000 evaluations of policy designs in China, Germany, India, and the UK to address the most prevalent barriers to the popularity of carbon taxes, as discussed in academic research, policy analysis, and public discourse: perceived effectiveness, average household costs, the types of revenue recycling schemes implemented, and the extent of international cooperation. Our findings revealed striking differences in how the countries responded to carbon tax policies. The key findings included the following: cost transparency unexpectedly reduced support, whereas communicating the effectiveness of the policy increased it; preferences for revenue recycling schemes varied significantly across the four countries, highlighting the need for tailored approaches; and, surprisingly, international cooperation increased support only in Germany, challenging assumptions about global climate policy. These findings have profound implications for policymakers, suggesting that an effective carbon tax design must be carefully calibrated in the national context. This study provides a roadmap for designing carbon tax policies that are environmentally effective and politically viable for diverse global economies. |
| Date: | 2025–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:fq4tn_v2 |
| By: | Simon Hirsch |
| Abstract: | Probabilistic electricity price forecasting (PEPF) is a key task for market participants in short-term electricity markets. The increasing availability of high-frequency data and the need for real-time decision-making in energy markets require online estimation methods for efficient model updating. We present an online, multivariate, regularized distributional regression model, allowing for the modeling of all distribution parameters conditional on explanatory variables. Our approach is based on the combination of the multivariate distributional regression and an efficient online learning algorithm based on online coordinate descent for LASSO-type regularization. Additionally, we propose to regularize the estimation along a path of increasingly complex dependence structures of the multivariate distribution, allowing for parsimonious estimation and early stopping. We validate our approach through one of the first forecasting studies focusing on multivariate probabilistic forecasting in the German day-ahead electricity market while using only online estimation methods. We compare our approach to online LASSO-ARX-models with adaptive marginal distribution and to online univariate distributional models combined with an adaptive Copula. We show that the multivariate distributional regression, which allows modeling all distribution parameters - including the mean and the dependence structure - conditional on explanatory variables such as renewable in-feed or past prices provide superior forecasting performance compared to modeling of the marginals only and keeping a static/unconditional dependence structure. Additionally, online estimation yields a speed-up by a factor of 80 to over 400 times compared to batch fitting. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.02518 |
| By: | Alice Pizzo; Christina Gravert; Jan M. Bauer; Lucia Reisch |
| Abstract: | We examine the impact of a carbon tax on consumer choices via a large-scale online randomized controlled trial. Higher taxes generally reduce the demand for high-carbon goods. Compared to an import tax, a carbon tax reduces demand when the tax is zero (i.e., announced but not levied) but leads to relatively higher demand for high-carbon goods when a positive tax is introduced. This contradiction of basic price theory is entirely driven by climate-concerned consumers. Our findings suggest that carbon taxes can crowd out climate concerns, leading to important implications for policy. |
| Keywords: | behavioral response, carbon pricing, climate change, climate policy, experiment, moral licensing |
| JEL: | Q58 C90 D03 D90 Q50 Q51 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11719 |
| By: | Adolphsen, Ole; Könneke, Jule; Schenuit, Felix |
| Abstract: | With the Green Deal, the European Union (EU) has not only significantly increased the ambition of its climate policy in recent years, but it has also added an international dimension to European domestic climate policy. In fact, numerous recently adopted legal acts directly or indirectly affect international partners. Nevertheless, the internal and external dimensions of climate policy are not systematically interlinked in the new European Commission, and there is little strategic diplomatic support for the measures. In view of the increased importance of competitiveness and geopolitical constellations, there is an opportunity for a new strategy process. This could help EU institutions and member states coordinate the external dimension and achieve a meaningful advancement of European climate policy. |
| Keywords: | Green Deal, European climate policy, European Union (EU), European Commission, US President Donald Trump, competitiveness, geopolitical constellations, EU Commission President Ursula von der Leyen, Russia's invasion of Ukraine, European Parliament, Carbon Border Adjustment Mechanism (CBAM), Net Zero Industry Act (NZIA), Corporate Sustainability Due Diligence Directive (CSDDD) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:315529 |
| By: | Danielian, Armen |
| Abstract: | This paper discusses the economic and legal challenges of price regulation in spot electricity markets during extreme events, taking the 2021 Texas winter storm as an example. The dual role of spot electricity prices (resource allocation and overall system reliability) in ERCOT's energy-only market resulted in allocating system reliability costs to load-shed consumers and spot electricity buyers, implying that complementary tools for covering system reliability costs should be sought. Further nuances are highlighted through a comparative qualitative analysis of value-of-lost-load pricing and anti-gouging legislation in the event context. |
| Keywords: | Value of lost load; Anti-gouging laws; Extreme events; ERCOT; Electricity spot market design; Price regulation; System reliability |
| JEL: | D47 D82 Q41 |
| Date: | 2025–01–06 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123964 |
| By: | Adolphsen, Ole; Könneke, Jule |
| Abstract: | The 29th Climate Change Conference (COP29) in Baku revealed a shift in the balance of power in international climate politics following the US elections. While China played a constructive role in the negotiations on international climate finance, vulnerable countries were forced to make painful compromises. Saudi Arabia managed to systematically block progress on mitigation, while middle powers increasingly criticised the EU's climate protection measures. To obviate the risk of isolation and avoid repercussions for its climate and competition agenda, the new European Commission needs to reorientate its climate diplomacy. |
| Keywords: | COP29, World Climate Conference, USA, China, European Union, EU, New Collective Quantified Goal, NCQG, Baku to Belém Roadmap to 1.3T, United Nations Framework Convention on Climate Change, UNFCCC, Carbon Border Adjustment Mechanism, CBAM, Global Gateway, New Collective Quantified Goal (NCQG) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:315525 |
| By: | Ansari, Dawud; Gehrung, Rosa Melissa; Pepe, Jacopo Maria |
| Abstract: | Greater Asia is emerging as a major factor in the global energy transition. This shift is associated with growing independence from external actors such as the European Union and the United States, with unfolding developments increasingly concentrated within the region itself. Key trends include the monopolisation of critical raw materials, the formation of new alliances that intersect with new value chain interdependencies, and the adoption of innovative technologies like small modular nuclear reactors. At the same time, geopolitical tensions and crises have the potential to reshape the region and its energy transition. To remain relevant and effective in Asia, Germany and the EU need to ensure that their engagement is constructive and attuned. |
| Keywords: | Greater Asia, geopolitics, global energy transition, European Union, United States, monopolisation of critical raw materials, value chain interdependencies, adoption of innovative technologies, strategic foresight, geopoliticisation, militarisation |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:315527 |
| By: | International Monetary Fund |
| Abstract: | Indonesia is exposed to both climate change transition risks and physical risks. With primary energy supply heavily dominated by fossil fuels, like many other countries, and as a major exporter of coal and liquefied natural gas, Indonesia is exposed to risks from the transition toward a carbon-neutral economy. Moreover, Indonesia is vulnerable to natural hazards, such as floods, droughts, and wildfires. With global temperatures rising, the frequency and severity of such events is expected to rise as well. |
| Date: | 2025–02–26 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfscr:2025/051 |
| By: | José Prudence Fongnikin (LEP/UAC - Université d’Abomey-Calavi / Laboratoire d’Économie Publique (LEP), Bénin); Magloire Lanha (LEP/UAC - Université d’Abomey-Calavi / Laboratoire d’Économie Publique (LEP), Bénin) |
| Abstract: | This study identifies the relationship between the characteristics of democratic systems and greenhouse gas (GHG) emissions. Using a panel dataset covering over 110 countries from 1961 to 2022 and employing a threshold model, this study examines how democracy influences environmental quality. The findings from the analyses reveal that in a thriving democracy, freedom of expression is an effective means of improving environmental quality by reducing greenhouse gas emissions. Conversely, the concentration of political power hinders the reduction of greenhouse gas emissions. It is observed that when political power is centralized in the hands of the executive branch, excluding opportunities for oversight of government actions, the economy becomes increasingly emission-intensive, thereby degrading environmental quality. It is also noted that at a low level of GDP per capita, greenhouse gas emissions increase, but when GDP per capita rises to a certain threshold, greenhouse gas emissions decrease. This demonstrates the validity of the Environmental Kuznets Curve hypothesis for all countries in the study. These results highlight the need to develop appropriate climate policies while strengthening participatory and institutional mechanisms within democracies to optimize their impact on environmental sustainability. |
| Abstract: | Cette étude identifie la relation entre les caractéristiques des systèmes démocratiques et les émissions de gaz à effet de serre (GES). En utilisant un ensemble de données de panel couvrant plus de 110 pays sur la période allant de 1961 à 2022 en présence d'un modèle de seuil, la présente étude examine la manière dont la démocratie influence la qualité de l'environnement. Les résultats issus de analyses révèlent que dans une démocratie prospère, la liberté d'expression est un moyen efficace pour améliorer la qualité de l'environnement par la réduction des émissions de gaz à effet de serre. En revanche, une concentration du pouvoir politique est une entrave à la réduction des émissions de gaz à effet de serre. Il est constaté que lorsque le pouvoir politique est centré dans les mains de l'exécutif en excluant les possibilités de contrôle de l'action gouvernementale, l'économie dévient de plus en plus émettrice, dégradant ainsi qualité de l'environnement. Il est remarqué aussi qu'à un niveau bas du produit intérieur brut par habitant, les émissions de gaz à effet de serre connaissent une augmentation mais quand produit intérieur brut par habitant évolue pour atteindre un certain seuil les émissions de gaz à effet de serre connaissent une baisse. Ceci démontre la validité de l'hypothèse de la courbe environnementale de Kuznets pour l'ensemble des pays de l'étude. Ces résultats soulignent la nécessité d'élaborer des politiques climatiques adéquates, tout en renforçant les mécanismes participatifs et institutionnels au sein des démocraties pour optimiser leur impact sur la durabilité environnementale. |
| Keywords: | Démocratie , Gaz à effet de serre, Environnement , Politique climatique., African Scientific Journal, Democracy Greenhouse gases Environment Climate policy, Democracy, Greenhouse gases, Environment, Climate policy |
| Date: | 2025–03–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04985530 |
| By: | Schenuit, Felix; Treß, Domenik |
| Abstract: | The role of permanent carbon dioxide removal (CDR) from the atmosphere is currently the subject of intensive discussion within the context of developing a new EU emissions reduction target for 2040 and a German long-term strategy on negative emissions. At the same time, a short-term strategy for the coming years is needed to ensure the successful scaling of technologies for what can be called "industrial CDR". So far, the focus has tended to be on a conceptual discussion of the quantities of CDR that are required to achieve net-zero greenhouse gas emissions; as a result, sufficient attention has not been paid to the question of how and on what time horizon the first large-scale CDR projects can come into being. Some countries have already developed short-term instruments aimed at triggering an initial investment drive into industrial CDR. A comparative assessment of these approaches reveals several viable policy options for targeted CDR scaling in both the EU and Germany. |
| Keywords: | carbon dioxide removal (CDR), new EU emissions reduction target for 2040, German long-term strategy on negative emissions, carbon dioxide, EU Emissions Trading System (ETS), land use, land-use change and forestry (LULUCF) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:315539 |
| By: | David Schaurecker; David Wozabal; Nils L\"ohndorf; Thorsten Staake |
| Abstract: | Maximizing revenue for grid-scale battery energy storage systems in continuous intraday electricity markets requires strategies that are able to seize trading opportunities as soon as new information arrives. This paper introduces and evaluates an automated high-frequency trading strategy for battery energy storage systems trading on the intraday market for power while explicitly considering the dynamics of the limit order book, market rules, and technical parameters. The standard rolling intrinsic strategy is adapted for continuous intraday electricity markets and solved using a dynamic programming approximation that is two to three orders of magnitude faster than an exact mixed-integer linear programming solution. A detailed backtest over a full year of German order book data demonstrates that the proposed dynamic programming formulation does not reduce trading profits and enables the policy to react to every relevant order book update, enabling realistic rapid backtesting. Our results show the significant revenue potential of high-frequency trading: our policy earns 58% more than when re-optimizing only once every hour and 14% more than when re-optimizing once per minute, highlighting that profits critically depend on trading speed. Furthermore, we leverage the speed of our algorithm to train a parametric extension of the rolling intrinsic, increasing yearly revenue by 8.4% out of sample. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.06932 |
| By: | Manoj Krishnan Cg (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Arun G (NICHE - Noorul Islam Centre for Higher Education) |
| Abstract: | For decades, businesses have struggled with the dichotomy between going green and becoming sustainable. Consumers are frequently seen as the most significant challenge when companies attempt to become more sustainable and greener. Although most consumers claim to be environmentally conscious, their green consumption habits are limited by other life commitments, showing an intention-action gap. There are only a handful of studies have developed an optimal model for predicting green consumer behavior. In this paper, the researcher identified a set of antecedents of Buying Behavior, including Environmental Prosocial Attitude, Green Consumption Value, and Openness to Green Communication, to develop an optimal model for predicting Green Consumer Buying Behavior. The findings demonstrate how widespread environmental prosocial attitudes and beliefs are related to green consumption values. As a result, these green values can have a positive relationship with openness to green advertising and green buying behavior. The research provides new insight into the factors influencing green buying behavior, especially consumer prosocial attitudes. Companies must understand consumers' green values and prosocial attitudes to accept green marketing communications and influence green buying behavior. A developed model is important for companies in creating creative green marketing content for implementing effective green marketing Campaigns to create favorable green consumer behaviors. |
| Keywords: | Environmental prosocial attitudes, Green customer values, Openness to green communication, Buying behavior, Green marketing |
| Date: | 2024–12–21 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04991813 |
| By: | Wesley Bonicontro Ambrosio; Bruna Ara\'ujo de Sousa; Jo\~ao Marcos Kanieski; Priscila Marchiorie; Gustavo Mockaitis |
| Abstract: | Sustainable Aviation Fuels (SAF) are pivotal in the global effort to decarbonize the aviation sector and meet greenhouse gas (GHG) reduction targets established by international frameworks such as CORSIA and Brazil ProBioQAV. This study evaluates SAF potential to reduce lifecycle carbon emissions by up to 80% while being compatible with existing aviation infrastructure. Through bibliometric analysis, scenario evaluation, legal and regulatory framework analysis and economic modeling, the research examines two key SAF production technologies: Hydroprocessed Esters and Fatty Acids Synthetic Paraffinic Kerosene (HEFA-SPK) and Alcohol-to-Jet (ATJ) pathways in the Brazilian context. The findings reveal significant economic challenges, particularly high feedstock and production costs, which hinder SAF competitiveness with fossil fuels at recent and current market prices in Brazil, leading to the analysis of potential incentives and commercial conditions aiming to increase economic attractiveness of SAF production. Based on interviews with relevant stakeholders and decision makers in the industry, scenarios incorporating tax incentives, carbon credits, capital grants, and premium pricing for SAF and its biogenic by-products demonstrate that combined policy interventions and commercial arrangements, along with a regulated Carbon Market are essential for SAF economic viability. Future research is suggested to look at regional assessments of feedstock availability, supply chain logistics, and global market eligibility. This research provides insights for guiding public policy and private investment to support the transition to sustainable aviation in Brazil and beyond. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.03880 |
| By: | Hugo Delcayre (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Sébastien Bourdin (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School) |
| Abstract: | Renewable energy (RE) projects are vital to achieving sustainable development in the context of the pressing challenges of climate change and the energy transition. However, despite the global consensus on their importance, RE projects often encounter significant resistance at the local level. This article investigates how territorial characteristics influence the social acceptability of RE projects and explores the concept of fertile ground as a framework for understanding the conditions that foster or hinder local support for such projects. Drawing on theories of regional path dependency and leadership agency, we identify the historical, socioeconomic, cultural and governance factors shaping local attitudes towards RE projects. By employing qualitative methods, including semi-structured interviews with diverse stakeholders and the analysis of press articles, we develop a nuanced approach that incorporates key territorial dynamics. Our findings reveal the critical role of historical industrial conflicts, political leadership, place attachment and perceptions of fairness in shaping local acceptability. They also highlight the influence of habituation and saturation effects, which shows that the acceptability of RE projects is not static; rather, it evolves over time in response to local conditions and stakeholder engagement. By situating the fertile ground concept within broader frameworks of social acceptability, this study provides actionable insights to policymakers and project developers seeking to align RE initiatives with local contexts and values. |
| Keywords: | Territorial characteristics, Social acceptability, Renewable energy, Fertile ground, Regional path dependency, Agency |
| Date: | 2025–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04991562 |
| By: | Burtraw, Dallas (Resources for the Future, Washington, DC, USA); Holt, Charles (University of Virginia, Charlottesville, VA, USA); Löfgren, Åsa (Department of Economics, School of Business, Economics and Law, Göteborg University); Shobe, William (University of Virginia, Charlottesville, VA, USA) |
| Abstract: | Many climate solutions including carbon dioxide removal (CDR) technologies require investments in capital intensive technologies that require large capacity investments and exhibit modest unit costs. Governments seeking to achieve net zero goals may invest directly in CDR to procure negative emissions credits to offset emissions in hard-to-abate sectors such as agriculture. In a procurement auction for a declining cost industry, the optimal allocation will generally require all winning bidders operating at full capacity. Because of the lumpy nature of investments, this may not fit within the government’s budget, leaving one or more winning bidders at the margin, operating at less than full capacity, and consequently with higher average costs. Protection can be provided to the marginal bidder by letting bids specify a range of acceptable quantities up to full capacity. The auction can be executed with sealed bids (specifying prices with associated minimum quantities) or by having the proposed bid price be lowered sequentially in a “clock auction” with quantity intervals specified by bidders at the current clock price. We consider the performance of sealed bid and clock auctions, in the presence of 1) a fixed government procurement budget, 2) “common value” uncertainty about the true per-unit production cost, and 3) the presence of a large, fixed cost. Laboratory experiment simulations with financially motivated human subjects are valuable for testing and developing auction designs that have never been used before, without relying on theoretical properties that depend on strong assumptions of perfect cost information and “truthful bidding.” Preliminary experiment results indicate that winner’s curse effects (bidder losses) are infrequent in both auction formats (clock and sealed bid), but the clock tends to restrict bidder profits in a manner that reduces the average cost for the buyer of the “units” representing CDR. Our experiments are informed by the projected use of auctions by the government of Sweden to procure carbon capture and sequestration from its domestic wood products and energy industry. |
| Keywords: | Carbon dioxide removal (CDR); Procurement auctions; Common value uncertainty; Capital-intensive technologies |
| JEL: | C92 D44 H57 Q54 Q55 Q58 |
| Date: | 2025–04–28 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:gunwpe:0854 |
| By: | Li, Ruoxuan |
| Abstract: | This review investigates Singapore’s emergence as a carbon credit trading hub and its evolving role in shaping Southeast Asia’s climate finance architecture. Drawing on a narrative-integrative methodology, the paper synthesizes grey literature, government policy, institutional reports, and verified academic sources to critically assess how Singapore constructs and governs its carbon market platform. The analysis is structured around three interrelated questions: (1) how Singapore builds its institutional and financial infrastructure to mediate carbon flows; (2) how public and private actors coordinate to establish authority and credibility within a hybrid governance model; and (3) how the platform-based architecture produces both opportunities and asymmetries across the ASEAN region. Conceptually, the paper engages with theories of platform capitalism, soft market regulation, and green financial intermediation to interpret Singapore’s infrastructural strategy. The findings suggest that Singapore’s market-oriented approach—anchored by mechanisms such as Climate Impact X, Article 6 bilateral agreements, and green financial instruments—functions not only as a facilitator of decarbonization but also as a gatekeeper of regional participation. While this model enables cross-border interoperability and enhances access to global climate finance, it also introduces risks of institutional dependency and normative concentration. The paper concludes by identifying gaps in current scholarship and proposing a future research agenda focused on comparative carbon governance, platform power, and the political economy of Article 6 implementation in Asia. |
| Date: | 2025–04–18 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:2j5nd_v1 |
| By: | Zakaria El Hathat (UIR - Université Internationale de Rabat); V.G. Venkatesh (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); V. Raja Sreedharan (Cardiff Metropolitan University); Tarik Zouadi (UIR - Université Internationale de Rabat); Yangyan Shi (Macquarie University [Sydney], CUEB - Capital University of Economics and Business); Manimuthu Arunmozhi (Aston Business School - Aston University [Birmingham]) |
| Abstract: | This study investigates the complex dynamics of stakeholder engagement on social media platforms within the context of carbon reduction engineering. To shed light on this underexplored phenomenon, we gather a unique dataset of 6, 940 Facebook-verified page posts, and we employ advanced data mining techniques to analyze the factors influencing stakeholder engagement. The findings demonstrate the significant impact of post characteristics on stakeholder engagement rates. Factors such as post length, hashtags, vividness level, hyperlinks, and the inclusion of call-to-action (CTA) play essential roles in shaping engagement patterns. Specifically, we find that shorter posts without hashtags tend to have lower engagement, while posts with moderate character counts, low vividness, and no hyperlinks often generate higher engagement. Additionally, our topic modeling analysis identifies critical themes discussed in carbon reduction engineering, including collaborative efforts among stakeholders, the role of academic institutions, renewable energy adoption, AI technology, and climate change mitigation. This, in turn, highlights the diverse perspectives and concerns of stakeholders actively engaged in these discussions. Our results significantly expand the literature on stakeholder theory, social interaction management, and the application of data mining techniques in analyzing social media engagement. |
| Keywords: | Carbon reduction engineering, Stakeholder engagement, Social interaction management, CHAID decision tree, Topic modeling, Social media, Facebook |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04992181 |
| By: | Könneke, Jule |
| Abstract: | The new EU Commission is promising to improve the bloc's geoeconomic resilience, make progress on decarbonisation and increase competitiveness. Achieving these aims will mean working with emerging economies like Brazil - where the EU's influence is waning as China's expands. The EU lacks a long-term strategy and is poorly positioned to engage with a newly assertive Brazil in an increasingly multipolar world. This is increasingly problematic for the EU's strategic agenda. |
| Keywords: | EU Commission, European Green Deal (EGD), EU Regulation on Deforestation-free Products (EUDR), EU's strategic agenda, greenhouse gases, geoeconomic resilience, decarbonisation, competitiveness, green technology, Donald Trump, Clean Industrial Deal, Net Zero Industry Act, Critical Raw Materials Act, Mercosur, Brazil, Luiz Inácio Lula da Silva, Carbon Border Adjustment Mechanism (CBAM), BRICS, Belt and Road Initiative (BRI) |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:315524 |
| By: | Ohyun Kwon (LeBow College of Business, Drexel University); Hao Zhao (School of Ecology and Environment, Renmin University of China); Min Qiang Zhao (MOE Key Laboratory of Econometrics, Xiamen University) |
| Abstract: | This paper investigates the reallocation effects of emissions cap-and-trade policy, leveraging China’s phased implementation of chemical oxygen demand (COD) regulations as a quasi-experiment. Our theoretical model posits that a pro rata emissions cap is more stringent for more productive firms, resulting in negative reallocation, whereas emissions trading restores efficiency through positive reallocation by reallocating emissions towards more productive firms. Utilizing the spatial and temporal variation in policy implementation, our empirical findings demonstrate that emission intensities of more productive firms, relative to less productive counterparts, declined after adopting the cap policy but subsequently increased with the introduction of cap-and-trade, aligning with our theoretical predictions. We also find that firms operating under a cap-and-trade regime, on average, experienced faster output growth compared to those operating under a cap-only regime, highlighting the role of emissions trading in enhancing production efficiency, even within imperfect markets. |
| Keywords: | emissions cap-and-trade; heterogeneous firms; imperfect competition; reallocative efficiency |
| JEL: | L51 Q53 Q58 |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:drx:wpaper:202514 |
| By: | Muellbauer, John |
| Abstract: | A green land value tax (LVT) can resolve conflicts among meeting climate goals, equity and housing affordability, while reducing intergenerational injustice. Land prices, reflected in house prices relative to incomes, are near all-time records, pricing younger citizens out of home-ownership and affordable rents. The OECD confirms that annual property taxes linked to recent market values can improve macroeconomic stability and also boost long-run growth. The green LVT – effectively a split-rate property tax – would consist of a charge on the land plus a charge on the building minus a discount depending on its energy usage. Regular revaluations discourage speculation and avoid cliff-edge changes. To protect cash-poor but land-rich households, everyone would have the right to defer the tax. To avoid complex interest charges, the tax authority would register a proportionate claim at the land registry equal to the unpaid tax for each year deferred, settled upon the property's transfer or sale. |
| Date: | 2023–07 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2023-12 |
| By: | Innocenti, Stefania; Bharadwaj, Preethika (School of Geography and the Environment, University of Oxford) |
| Abstract: | Fossil fuel subsidies pose a significant barrier to achieving decarbonisation goals, yet their removal remains challenging due to concerns about public opposition and the potential impact on vulnerable groups. In Malaysia, where a petrol subsidy reform is underway, we conducted a mixed-methods study to explore strategies to increase public support for the reform. The study combined an incentivised experimental online survey (N=1, 208) and interviews with policymakers (N=12). The survey tested redistributive and environmental framing interventions, while the interviews examined policymakers' perceptions of public support and its interplay with other reform considerations. Results show that emphasising the redistributive benefits of the reform can increase public support by at least 8 percentage points from a baseline of 25%, while the environmental framing increases support by at least 5 percentage points from a 39% baseline among prior opposers. Policymakers acknowledged the challenges posed by the unpopularity of subsidy reforms, but underscored the critical role of strategic communication in addressing public concerns. By crafting transparent and resonant narratives, policymakers can garner greater support for implementing the reform. |
| Keywords: | climate policy, fuel subsidy reform, public support, communication, survey-based experiment, Malaysia |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2025-03 |
| By: | Abajian, Alexander; Carleton, Tamma; Meng, Kyle; Deschênes, Olivier |
| Abstract: | Many behavioral responses to climate change are carbon-intensive, raising concerns that adaptation may cause additional warming. The sign and magnitude of this feedback depend on how increased emissions from cooling balance against reduced emissions from heating across space and time. We present an empirical approach that forecasts the effect of future adaptive energy use on global average temperature over the 21st century. We estimate that energy-based adaptation will lower global mean surface temperature in 2099 by 0.07 to 0.12 °C relative to baseline projections under Representative Concentration Pathways 4.5 and 8.5. This cooling avoids 0.6 to 1.8 trillion U.S. Dollars ($2019) in damages, depending on the baseline emissions scenario. Energy-based adaptation lowers business-as-usual emissions for 85% of countries, reducing the mitigation required to meet their unilateral Nationally Determined Contributions by 20% on average. These findings indicate that while business-as-usual adaptive energy use is unlikely to accelerate warming, it raises important implications for countries existing mitigation commitments. |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:agrebk:qt9642j569 |
| By: | Gazilas, Emmanouil Taxiarchis |
| Abstract: | This study examines the short-term stock market response of eleven Greek energy firms to the April 2, 2025, U.S. tariff announcement. Using an event study methodology over an 11-day window, results reveal limited reaction on the event day but significant negative abnormal returns in the days that followed. A temporary rebound occurred, though not sustained. The findings highlight the sensitivity of small-market energy firms to international trade policy shocks, even when not directly targeted. |
| Keywords: | Event study; U.S. tariffs; Greek energy firms; Trade policy shocks |
| JEL: | F13 G14 Q40 |
| Date: | 2025–04–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124354 |
| By: | Xipeng Gao (School of Economics and Finance, XiÕan Jiaotong University, XiÕan, Shaanxi, PR China); Xiangju Li (School of Economics and Finance, XiÕan Jiaotong University, XiÕan, Shaanxi, PR China); Jorge Martinez-Vazquez (International Center for Public Policy, Georgia State University, Atlanta, Georgia, United States) |
| Abstract: | A central tenet in the fiscal federalism literature posits that inter-jurisdictional tax competition can engender economic efficiency losses. However, diverse firms exhibit heterogeneous sensitivities to varying tax burdens. When firms strategically evaluate differential tax pressures across tax categories, tax competition evolves into competition over tax structure. This dynamic is particularly pronounced in the case of green taxes and fees, which aim to internalize negative externalities compared to conventional tax instruments. We identify a Òrace to the bottomÓ phenomenon in corporate green taxes and fees driven by structural distortions within the tax system in China. Based on the constructed theoretical model of energy factor allocation that includes a distortionary coefficient of green taxes and fees, we predict that the efficiency growth of firms will decrease as the intensity of their Òrace to the bottomÓ competition increases in response to the relative pressure of green taxes and fees. Using data from listed companies in China, we find a robust negative relation between the Òrace to the bottomÓ competitive intensity of green taxes and fees pressure and total factor productivity growth. Our findings indicate that increasing the intensity of fiscal and environmental decentralization exacerbates the problem of the intensity of competition in the corporate tax structure, generating significant efficiency losses. These findings provide new evidence on the economic disadvantages of unchecked tax competition in decentralized systems. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:ays:ispwps:paper2507 |
| By: | Budría, Santiago (Universidad Nebrija); Bravo Chew, Leslie (Universidad Nebrija) |
| Abstract: | Evidence on how energy poverty persistence and vulnerability to key factors are distributed across different population groups remains scarce. This paper seeks to bridge this gap by analyzing the dynamics and determinants of energy poverty within population clusters. The significance of the paper is highlighted in the integration of a two-stage Generalized Method of Moments (GMM) estimation procedure with K-means cluster analysis. K-means clustering is a fundamental tool within AI to understand and find patterns and structure in data without labeled outputs. Two key findings emerge. First, the degree of energy poverty state dependence varies substantially across clusters, with some segments of the population deeply entrenched and facing significant barriers to escape. Second, variables critical for identifying at-risk groups, such as income and energy prices, exhibit different impacts across clusters. These findings highlight the need for targeted policy interventions tailored to the specific vulnerabilities of distinct population segments. |
| Keywords: | energy poverty, state dependence, K-means clustering, Generalized Method of Moments |
| JEL: | Q40 I32 C38 C33 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17809 |
| By: | Darren Shannon; Jin Gong; Barry Sheehan |
| Abstract: | Public announcement dates are used in the green bond literature to measure equity market reactions to upcoming green bond issues. We find a sizeable number of green bond announcements were pre-dated by anonymous information leakages on the Bloomberg Terminal. From a candidate set of 2, 036 'Bloomberg News' and 'Bloomberg First Word' headlines gathered between 2016 and 2022, we identify 259 instances of green bond-related information being released before being publicly announced by the issuing firm. These pre-announcement leaks significantly alter the equity trading dynamics of the issuing firms over intraday and daily event windows. Significant negative abnormal returns and increased trading volumes are observed following news leaks about upcoming green bond issues. These negative investor reactions are concentrated amongst financial firms, and leaks that arrive pre-market or early in market trading. We find equity price movements following news leaks can be explained to a greater degree than following public announcements. Sectoral differences are also observed in the key drivers behind investor reactions to green bond leaks by non-financials (Tobin's Q and free cash flow) and financials (ROA). Our results suggest that information leakages have a strong impact on market behaviour, and should be accounted for in green bond literature. Our findings also have broader ramifications for financial literature going forward. Privileged access to financially material information, courtesy of the ubiquitous use of Bloomberg Terminals by professional investors, highlights the need for event studies to consider wider sets of communication channels to confirm the date at which information first becomes available. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.03311 |
| By: | Ives, Matthew; Beinhocker, Eric; Gasparini, Matteo; Fry, Sophie; Carr, Ben |
| Abstract: | The discussions around the role of the financial system in fostering the green transition have been steadily growing. Companies are increasingly required to quantify and disclose climate risks. However, the influential role of existing accounting and financial reporting requirements, and broader financial regulation, are not commonly considered to be a significant driver in the transition. Analyzing data and classifications from the European Banking Authority, we test whether existing frameworks might inadvertently be disincentivizing divestments from brown assets. We find that a significant bias exists – differences in the provision coverage ratio (PCR) reveal banks have to account for nearly double loan loss provisions for lending to non-brown sectors as to brown. We argue that this bias could be present in other model-based regulations, such as capital requirements and possibly impact the ability of banks to fund green investments. Finally, we discuss the possible underlying drivers of this effect and some avenues for further research. |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2023-11 |
| By: | Hellsmark, Hans; Rosenberg, Viktor Jonsson; Mäkitie, Tuukka; Folkesson, Elin |
| Abstract: | The emergence of the hydrogen economy is expected to play a central role in industrial decarbonization, yet little is known about how hydrogen transitions shape labor markets across sectors and regions. This paper examines the formation of hydrogen-related labor markets in Sweden, Norway, and Denmark, using job postings as a proxy for recruitment activity. Drawing on socio-technical systems theory and cluster analysis, we identify emerging configurations of actors, competences, and regional specializations. Data was collected from national job portals between August 2023 and September 2024 and analyzed using unsupervised machine learning. Six labor market clusters were identified, showing distinct combinations of recruiting organizations, sectoral focus, and geographical distribution. Engineering jobs—comprising over 40% of the dataset—were also examined in a separate cluster analysis, revealing variation in recruitment needs across technical disciplines and national contexts. Findings suggest that labor market formation is deeply shaped by prior industrial specializations and policy frameworks. Norway’s labor market reflects its offshore energy legacy, dominated by consulting and engineering firms. Denmark shows a capital-concentrated, research-driven pattern, while Sweden’s job creation is led by large incumbents, particularly in energy utilities. The study demonstrates how labor market data can serve as an empirical window into early-stage socio-technical configurations in sustainability transitions. It highlights the potential of combining digital trace data and machine learning to understand regional, sectoral, and competence dynamics in emerging green economies. This approach advances the study of sectoral labor dynamics in energy transitions and offers tools for informing cross-sectoral policy and workforce planning. |
| Date: | 2025–04–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:4m3kg_v1 |
| By: | Adrien Mutunzi (Université de Kisangani, Kisangani, République Démocratique du Congo, UNIKIS - Université de Kisangani) |
| Abstract: | Abstract This paper addresses the issue of economic growth from a sustainable development perspective. Through appropriate econometric modeling, it relates the different dimensions of sustainable development and their effects on economic growth in the Democratic Republic of Congo (DRC). Data estimation using the Ordinary Least Square method is corrected by the Vector Error Correction Model (VECM). Correction Model"). The results show that, in the long term, the HDI and CO2 emissions have a fairly significant influence on economic growth in the DRC over the study period. If the HDI varies by 1-point, economic growth in the DRC increases by 3.261384%, while an increase in economic growth of 7.8 points leads to an increase in CO2 pollution of 1 point. Any long-term increase in production leads to an increase in CO2 emissions. There is therefore a negative influence between the economic dimension of sustainable development and the environmental dimension. Also, any long-term increase in GDP leads, all other things being equal, to an increase in the HDI, i.e. a positive change in the population's standard of living. This result shows that there is a positive influence between the social dimension of sustainable development and the economic dimension. The Congolese government therefore needs to implement an expansionist structural economic policy with a focus on environmental protection, in order to minimize the negative effects of economic growth in terms of social inequality and increased atmospheric pollution. |
| Abstract: | Résumé Ce papier aborde la question de croissance économique dans une perspective du développement durable. A travers une modélisation économétrique appropriée, il met en relation les différentes dimensions du développement durable et leurs effets sur la croissance économique de la République démocratique du Congo (RDC). L'estimation des données par la méthode de Moindre Carré Ordinaire est corrigée par le Modèle Vectoriel à Correction d'Erreur (VECM, « Vector Error Correction Model »). Les résultats renseignent qu'à long terme l'IDH et l'émission de CO2 ont une influence assez significative sur la croissance économique de la RDC pendant la période sous étude. Si l'IDH varie de 1 point, la croissance économique de la RDC augmente de 3, 261384% alors que l'augmentation de la croissance économique de 7, 8 points entraine une augmentation de la pollution de CO2 de 1 point. Toute augmentation à long terme de la production entraine une augmentation des émissions de CO2. Il y a donc une influence négative entre la dimension économique du développement durable et la dimension environnementale. Aussi, toute augmentation du PIB à long terme entraine toute chose restant égale par ailleurs, l'augmentation de l'IDH soit une modification positive du niveau de vie de la population. De ce résultat, on dégage l'existence d'une influence positive entre la dimension sociale du développement durable et la dimension économique. Ainsi, Le gouvernement congolais devra donc mettre en place une politique économique structurelle expansionniste mettant l'accent sur la protection de l'environnement afin de minimiser les retombées négatives de la croissance économique qui se traduisent par des inégalités sociales et l'accentuation de la pollution de l'atmosphère. |
| Keywords: | Sustainable development, economic growth, CO2 emission, DRC, Développement durable croissance économique émission de CO2 RDC, Développement durable, croissance économique, émission de CO2 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05008080 |
| By: | Shujie Wu; Mindy Mallory; Teresa Serra |
| Abstract: | We investigate the impact of the policy-driven expansion of the diesel and renewable diesel industry on local soybean prices. Because soybean oil is a key feedstock for biodiesel and renewable diesel, significant investments have been made in new soybean crush facilities and the expansion of existing ones. We quantify the effect of both new and existing soybean plants on soybean basis using panel data and a differences-in-difference approach. The data available on new plants does not allow us to identify any statistically significant impacts. However, existing plants increase the basis by 23.36 to 9.20 cents per bushel, with the effect diminishing with distance. These results suggest the relevance of biofuel policies in supporting rural economies and have relevant policy implications. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.01756 |
| By: | Valentine Erné-Heintz (CERDACC - Centre européen de recherche sur le risque, le droit des accidents collectifs et des catastrophes - CERDACC - UR3992 - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar, IDEES - Identité et Différenciation de l’Espace, de l’Environnement et des Sociétés - UNICAEN - Université de Caen Normandie - NU - Normandie Université - ULH - Université Le Havre Normandie - NU - Normandie Université - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université - CNRS - Centre National de la Recherche Scientifique - IRIHS - Institut de Recherche Interdisciplinaire Homme et Société - UNIROUEN - Université de Rouen Normandie - NU - Normandie Université) |
| Abstract: | Nuclear power is at the crossroads of science and society, because of the scale of the economic, political, social, environmental and ethical challenges it poses. The issues exceed by far the concerns of the scientific and expert community, which have been reignited by recent debates on the European taxonomy. Nuclear power sparks fervent controversies, oppositions and conflicts within our society. In this context, the inquiry focuses on the ability to involve young citizens in the debate on the future of a territory subsequent to the shutdown of a nuclear power plant. The underlying hypothesis highlights the value of introducing a serious game into a controversial setting, and its ability to build consensus around a new trajectory. Consequently, after presenting the framework of our case study, we will analyze the results in order to understand how students from the local middle school take hold of the future of their territory, which happens to be a controversial nuclearized territory. |
| Abstract: | RésumésFrançais English Le nucléaire se trouve aux interactions entre sciences et société du fait de l'ampleur des défis économiques, politiques, sociaux, environnementaux et éthiques que cette technologie porte en elle. En effet, les questionnements qu'il suscite vont bien au-delà des questionnements scientifiques et de la communauté des experts que les débats récents autour de la taxonomie européenne ont ravivé. Le nucléaire génère des controverses passionnelles, des oppositions et des conflits dans la société. Dans ce contexte, la question porte sur la capacité à faire participer de jeunes citoyens dans le débat sur le devenir d'un territoire après la fermeture d'une centrale. L'hypothèse sous-jacente porte sur l'intérêt d'introduire un serious game dans un contexte controversé et sa capacité à faire émerger un consensus autour d'une nouvelle trajectoire. Ainsi, après avoir présenté le cadre de notre étude de cas, nous exposerons les résultats afin de comprendre comment de jeunes collégiens du territoire s'emparent du devenir de leur territoire, celui d'un territoire nucléarisé controversé.Nuclear power is at the crossroads of science and society, because of the scale of the economic, political, social, environmental and ethical challenges it poses. The issues exceed by far the concerns of the scientific and expert community, which have been reignited by recent debates on the European taxonomy. Nuclear power sparks fervent controversies, oppositions and conflicts SEARCHTout OpenEdition within our society. In this context, the inquiry focuses on the ability to involve young citizens in the debate on the future of a territory subsequent to the shutdown of a nuclear power plant. The underlying hypothesis highlights the value of introducing a serious game into a controversial setting, and its ability to build consensus around a new trajectory. Consequently, after presenting the framework of our case study, we will analyze the results in order to understand how students from the local middle school take hold of the future of their territory, which happens to be a controversial nuclearized territory. |
| Keywords: | transition serious game nucléaire gouvernance territoire transition serious game nuclear power governance territory, transition, serious game, nucléaire, gouvernance, territoire transition, nuclear power, governance, territory |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04992955 |
| By: | World Bank |
| Abstract: | The transition to a net-zero economy presents significant social and economic challenges, particularly for industries and regions reliant on high-carbon activities, hence the need for a just transition. This paper examines exposure to just transition risks—a newly introduced category of financial risk defined as social risks driven by climate transition risks—in the Polish banking sector. Using a sector- and place-based methodology, the paper identifies financial exposures to just transition relevant sectors, classified as declining (subject to job losses) or transforming (requiring adaptation to lower-carbon processes). Leveraging granular credit data, the findings show that 17.2 percent of Polish banks’ financing is exposed to just transition relevant sectors, predominantly in transforming sectors like transportation. Regional analysis reveals that 2.7 percent of total just transition relevant sector credit is concentrated in European Union Just Transition Fund–backed regions, where policy support mitigates some risks, but residual social risks may persist. Meanwhile, 9.1 percent of total credit is linked to non–Just Transition Fund regions, where exposure to just transition risks is potentially higher. Although not conclusive, these findings underscore the need for Polish banks to integrate just transition considerations into risk management frameworks—enhancing due diligence and data aggregation capabilities—and engage with affected stakeholders to mitigate legal and reputational risks while supporting a socially equitable climate tr ansition. |
| Date: | 2025–04–09 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11098 |
| By: | Alexander Wimmers; Christian von Hirschhausen; Fabian Präger; Claudia Kemfert; Josephine Hiepler; Claudia Humann; Pauline Kaiser; Andrea Lagoda; Theresa Lang; Leila Lubosch; Ruta Nonnenbroich; Henning Pahlke; Raphael Stiemke; Zoe Tercier; Alexander Buschner |
| Abstract: | Even after the closure of the last commercial nuclear power plants in Germany, substantial challenges of the nuclear legacy remain. Nuclear power plants must be decommissioned, and remaining nuclear waste must be storaed safely for the coming millenia. With the de facto delay in the selection of a site for a deep geological repository for high-level radioactive waste in Germany until the second half of this century, the German legislators’ focus is shifting towards a so-called long-term interim storage facilities of this waste. Today, most of the high-level radioactive waste is stored at the 16 decentralized interim storage facilities, mostly located at the sites of former nuclear power plants. The first operating licenses will expire within the next ten years. This results in unresolved questions about the safe long-term interim storage of radioactive waste in Germany. This data documentation provides a comprehensive introduction to the terminology of nuclear waste disposal and an overview of the current stocks in German interim storage facilities, including low-, intermediate, and high-level wastes. It highlights the discrepancies between the data provided by the various stakeholders at individual sites and discusses key challenges, particularly with regard to pending new licenses. Furthermore, this data documentation serves as a reference work for the film “Einfach mal (zwischen)lagern” (see https://www.youtube.com/watch?v=GWjAWtBdxOg), which was published as a study project. Auch nach der Abschaltung der letzten kommerziellen Kernkraftwerke in Deutschland ist die Atomwende noch nicht abgeschlossen: Nach der Abschaltung folgt der Rückbau der Kernkraftwerke und die Herausforderungen der sicheren Entsorgung der nuklearen Abfälle müssen bewältigt werden. Mit der de-facto Verzögerung der Standortauswahl für ein tiefengeologisches Endlager für hochradioaktive Abfälle in Deutschland in die zweite Hälfte dieses Jahrhunderts rückt die Zwischenlagerung dieser Abfälle in den Fokus. Heute lagern die meisten hochradioaktiven Abfälle in den 16 dezentralen Zwischenlagern, zumeist an den Standorten der ehemaligen Kernkraftwerke und erste Betriebsgenehmigungen laufen in den kommenden zehn Jahren aus. Dies resultiert in ungeklärten Fragen zur sicheren Langzeitzwischenlagerung der radioaktiven Abfälle in Deutschland. Diese Data Documentation stellt eine umfassende Einführung in die Terminologie der nuklearen Entsorgung und einen Überblick über die aktuellen Bestände (schwach-, mittel- und hochradioaktive Abfälle) in deutschen Zwischenlagern dar. Dabei werden an einzelnen Standorten die Diskrepanzen zwischen den zur Verfügung gestellten Daten der verschiedenen Akteure herausgearbeitet und wesentliche Herausforderungen, insb. hinsichtlich der anstehenden Neugenehmigungen, thematisiert. Weiterhin dient diese Data Documentation als Nachschlagewerk für den als Studienprojekt veröffentlichten Film „Einfach mal (zwischen)lagern“ (siehe https://www.youtube.com/watch?v=GWjAWtBd xOg). |
| Keywords: | Radioaktive Abfälle, Zwischenlager, Zwischenlagerung, Deutschland, Brennelementelagerung, CASTOR // Nuclear waste management, interim waste storage, Germany, spent fuel, CASTOR |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwddc:dd110 |
| By: | Megan Elizabeth Lang |
| Abstract: | Prepaid electricity contracts lower enforcement costs but may burden consumers, particularly when market frictions are present. This paper presents the results of a randomized control trial where 2, 000 randomly selected, rural Rwandese consumers were offered a line of credit for electricity payments. The line of credit lowered liquidity constraints and transaction costs. Twenty percent of consumers borrowed and demand for the credit was inelastic; however, the line of credit did not change average demand for electricity. Detailed administrative data reveal that consumers primarily used the line of credit to lower transaction costs, suggesting that rural consumers highly value convenience. The results highlight potential Pareto improvements from more flexible prepaid contracts. |
| Date: | 2025–04–09 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11097 |
| By: | Gilberto Miller Devós Ganga (UFSCar - Federal University of São Carlos); Roberta Dell Avanzi (UFSCar - Federal University of São Carlos); Guilherme Ramos (UFSCar - Federal University of São Carlos); Mario Henrique Callefi (Chemnitz University of Technology / Technische Universität Chemnitz); Moacir Godinho Filho (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Fabiane Letícia Lizarelli (UFSCar - Federal University of São Carlos); Glauco Henrique de Souza Mendes (UFSCar - Federal University of São Carlos) |
| Abstract: | Electric autonomous vehicles, including Autonomous Electric Buses (AEBs), offer significant societal benefits such as fewer accidents, reduced pollution, and enhanced driving efficiency, presenting a promising alternative to public transportation. While research on this subject exists in developed countries like Europe, China, and Germany, there remains a significant gap in our understanding of the acceptance of AEBs in emerging economies. Our study investigated the adoption factors of AEBs in a medium-sized Brazilian city by surveying 554 respondents. In our structural model, we adopted a hybrid approach that integrates elements from the modified Technology Acceptance Model (TAM), Theory of Planned Behavior (TPB), and Unified Theory of Acceptance and Use of Technology (UTAUT). The study's findings indicate that a positive attitude, perceived usefulness, initial trust, and subjective norm significantly influence Brazilian consumers' intention to use AEBs. The theoretical implications of this study involve the creation of a model that intricately merges elements from multiple existing frameworks (TAM, TPB, and UTAUT). This proposed model synthesizes key factors influencing the acceptance of AEBs in emerging economies, providing a foundation for developing effective public policies for urban logistics automation. |
| Keywords: | Autonomous electric buses, Technology acceptance, Autonomous public transport, Emerging economy |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04992013 |
| By: | Congluo Xu; Yu Miao; Yiling Xiao; Chengmengjia Lin |
| Abstract: | This paper proposes DeepGreen, an Large Language Model Driven (LLM-Driven) system for detecting corporate green-washing behaviour. Utilizing dual-layer LLM analysis, DeepGreen preliminarily identifies potential green keywords in financial statements and then assesses their implementation degree via iterative semantic analysis of LLM. A core variable GreenImplement is derived from the ratio from the two layers' output. We extract 204 financial statements of 68 companies from A-share market over three years, comprising 89, 893 words, and analyse them through DeepGreen. Our analysis, supported by violin plots and K-means clustering, reveals insights and validates the variable against the Huazheng ESG rating. It offers a novel perspective for regulatory agencies and investors, serving as a proactive monitoring tool that complements traditional methods.Empirical tests show that green implementation can significantly boost the asset return rate of companies, but there is heterogeneity in scale. Small and medium-sized companies have limited contribution to asset return via green implementation, so there is a stronger motivation for green-washing. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.07733 |
| By: | Sofiane Tanji; Yassine Kamri; Fran\c{c}ois Glineur; Mehdi Madani |
| Abstract: | Convex Hull (CH) pricing, used in US electricity markets and raising interest in Europe, is a pricing rule designed to handle markets with non-convexities such as startup costs and minimum up and down times. In such markets, the market operator makes side payments to generators to cover lost opportunity costs, and CH prices minimize the total "lost opportunity costs", which include both actual losses and missed profit opportunities. These prices can also be obtained by solving a (partial) Lagrangian dual of the original mixed-integer program, where power balance constraints are dualized. Computing CH prices then amounts to minimizing a sum of nonsmooth convex objective functions, where each term depends only on a single generator. The subgradient of each of those terms can be obtained independently by solving smaller mixed-integer programs. In this work, we benchmark a large panel of first-order methods to solve the above dual CH pricing problem. We test several dual methods, most of which not previously considered for CH pricing, namely a proximal variant of the bundle level method, subgradient methods with three different stepsize strategies, two recent parameter-free methods and an accelerated gradient method combined with smoothing. We compare those methods on two representative sets of real-world large-scale instances and complement the comparison with a (Dantzig-Wolfe) primal column generation method shown to be efficient at computing CH prices, for reference. Our numerical experiments show that the bundle proximal level method and two variants of the subgradient method perform the best among all dual methods and compare favorably with the Dantzig-Wolfe primal method. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.01474 |
| By: | Fusillo Fabrizio; Manera Maria; Orsatti Gianluca; Quatraro Francesco; Rentocchini Francesco (European Commission - JRC) |
| Abstract: | Reducing uncertainty around critical raw materials (CRM) supply is a policy priority for the EU in view of their role for advanced carbon neutral and digital technologies. A new, AI based indicator is introduced to measure the exposure of inventive activities to critical raw materials, outperforming existing approaches by identifying CRM relevance even when not immediately evident. High exposure sectors, such as aerospace & defence and ICT services, intensify inventive efforts in response to CRM supply risk, indicating strategic shifts towards substitution and diversification. European regions differ significantly in CRM exposure: some areas (e.g. parts of France, Germany, Italy, and Scandinavia) show con-siderable hidden CRM based inventive activity. Firms in CRM exposed sectors adapt by both increasing their inventive efforts and seeking alternative inventive routes, suggesting that innovation can mitigate supply risk vulnerabilities. |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141261 |
| By: | Javier Aliaga Lordemann (INESAD Associate Researcher); María Cecilia Lenis Abastoflor (INESAD Junior Researcher); Louis Schöder (International specialist in renewable energy) |
| Abstract: | En este documento se analiza el consumo energético de los productores de quinua en el altiplano boliviano. El objetivo de la investigación es evaluar cómo el consumo de energía influye en el gasto total de los productores y, además, ofrecer recomendaciones para promover prácticas energéticas sostenibles. Estudios previos realizados en contextos similares indican que el acceso a fuentes de energía modernas está relacionado con un mayor valor agregado en la producción agrícola. La presente investigación incluye una encuesta a 137 productores de quinua en cuatro comunidades del altiplano. En ella se mide el consumo de biomasa, el uso de tecnologías renovables y el impacto en la producción agrícola. Se aplicaron modelos econométricos (i.e. Mínimos Cuadrados Ordinarios (MCO) y regresiones cuantílicas) para analizar la relación entre el gasto en diferentes fuentes de energía y el gasto total. Los hallazgos revelan que el gasto en electricidad tiene una relación positiva con el gasto total, lo que sugiere que mayores ingresos permiten acceder a fuentes más eficientes. En contraste, el gasto en leña y combustible presenta relaciones negativas, lo que indica que existe una dependencia de fuentes tradicionales vinculada a la pobreza energética. La deprivación energética afecta significativamente a los hogares de menores ingresos y evidencia su vulnerabilidad. Además, el uso de la tecnología se asocia con una mayor eficiencia energética, y resalta la necesidad de políticas que fomenten el acceso a tecnologías modernas. |
| Keywords: | Consumo energético, área rural del altiplano boliviano, regresiones cuantílicas. |
| JEL: | Q4 Q41 Q56 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:adv:wpaper:202412 |
| By: | Müller, Melanie; Strack, Lea; Vulović, Marina |
| Abstract: | In July 2024, the European Union (EU) and the Serbian government signed a strategic raw materials partnership. For the EU, this cooperation represents an important step towards diversifying its supply chains and strengthening economic partnerships in its neighbourhood. Serbian President Aleksandar Vuéci´c has a geopolitical interest in this cooperation, which he also wants to use to further consolidate his already extensive power domestically. The signing of the partnership agreement has triggered massive protests in Serbia. Critics fear that the implementation of the raw materials partnership could further undermine already fragile rule-of-law structures, as well as environmental and social standards. The case of Serbia illustrates that the EU can only exert limited influence on the country's authoritarian government in a geopolitically tense context. However, it must strategically use its available leverage to mitigate the existing risks. |
| Keywords: | Serbia, Aleksandar Vuéci´c, rule of law, sustainability, Europe's raw materials cooperation, Critical Raw Materials Act (CRMA), ESG (environmental, social, governance), Jadar Project, lithium, boron, German Mineral Resources Agency (DERA), Rio Sava |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:315536 |
| By: | Rind Alhage (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); Valérie Seguin (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) |
| Abstract: | Présentation sur l'intérêt du fonctionnement flexible des électrolyseurs en France horizon 2030 et les contraintes d'infrastructures associées. Le travail traite aussi la question de la flexibilité de la demande industrielle et utilise PERSEE. |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:cea-04995080 |
| By: | Isabella Gourevich |
| Abstract: | Key MessagesUkraine possesses confirmed reserves for two-thirds of the 34 raw materials classified as critical by the EU. Despite this geological richness, current extraction levels remain limited.The EU faces lower supply risks for raw materials currently mined in Ukraine than for those that remain part of the country’s untapped resource potential.Ukraine currently plays a minor role in EU raw material value chains. However, it is a potential future key partner in enhancing the EU’s resource security.Realizing Ukraine’s potential as a raw material supplier requires more than mining. Significant investment in downstream capabilities is essential to create integrated value chains.The EU must pursue a multi-pronged strategy: deepen partnerships with resource-rich and politically stable countries, expand domestic refining capacities, and accelerate recycling, substitution, and circular economy initiatives. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:econpb:_72 |