|
on Energy Economics |
| By: | Jeddi, Samir (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | The increasing share of intermittent renewable energy generation amplifies power price volatility, raising the need for storage technologies such as battery energy storage systems (BESS). However, limited transmission infrastructure, particularly constrained grid connections, poses a major barrier to the deployment of both BESS and further renewable generation. Co-locating BESS with wind and solar assets can increase grid connection utilization and lower project costs. This study examines the effects of grid connection rationing on hybrid PV-BESS systems, accounting for weather-induced generation uncertainty and price fluctuations. Findings indicate that PV and BESS margins exhibit a strong negative correlation, leading to risk diversification. Grid withdrawal constraints substantially reduce contribution margins and increase risk exposure by lowering the diversification effect. In contrast, hybrid PV-BESS systems can reduce their grid injection capacity by up to 60% of their nameplate capacity without significantly affecting contribution margins or risk, as peak solar generation coincides with low power prices. A market premium payment diminishes the diversification benefits of hybrid PV-BESS systems and encourages greater grid connections by inflating the value of generation during low-price periods. These findings suggest that the central features of the German EEG innovation tender scheme for hybrid BESS systems - grid withdrawal constraints and a market premium - created an unnecessary excess burden for taxpayers. |
| Keywords: | PV-battery storage; Grid constraints; Renewable integration; Diversification; Risk mitigation |
| JEL: | C61 C63 D81 L51 Q41 Q42 |
| Date: | 2025–05–19 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2025_005 |
| By: | Daniele Colombo (London Business School); Francesco Toni (Université Côte d'Azur, CNRS, GREDEG, France; Scuola Normale Superiore, Italy) |
| Abstract: | We identify supply and demand shocks to the real price of natural gas in the Euro Area and the United States. Demand shocks are identified using exogenous temperature variations, while supply shocks are identified through a high-frequency strategy based on an extensive collection of market-relevant news. This approach enables us to estimate gas market elasticities and uncover key transmission channels through which gas price shocks affect the broader macroeconomy. Our findings show that gas demand in the Euro Area adjusts more slowly than in the United States, amplifying the inflationary impact of supply shocks. This effect is reinforced by inventory accumulation and financial volatility, pointing to a transmission channel driven by expectations and uncertainty. The aggregate real effects appear limited, though we document substantial sectoral heterogeneity. |
| Keywords: | Gas price shocks, gas supply, gas demand, elasticities, proxy-VAR, external instruments, temperature deviations, inflation |
| JEL: | C32 E31 Q38 Q41 Q43 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2025-20 |
| By: | Czock, Berit Hanna (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | This study examines the static market and welfare effects of splitting the German bidding zone, comparing a two-zone and a three-zone configuration for a 2030 scenario. Using a state-of-the-art grid and market model with explicit representation of frictions in flow-based market coupling and redispatch, the analysis finds that the investigated two-zone split results in a 1.6% static welfare loss as redispatch cost savings do not overcompensate the negative effect of more transmission constraints in the electricity market. Contrarily, three zones lead to a 4.4% static welfare gain, as redispatch cost decrease further than with two zones and trade between German zones is enhanced due to a reduction of loop flows on interconnectors between Germany’s North and South. However, both bidding zone split options lead to significant distributional effects, with higher consumer costs and increased subsidy expenditures for renewable energy sources (RES), though these effects are less pronounced with three zones. Additionally, welfare effects are sensitive to scenario definition and representation of frictions. All in all, policymakers should carefully assess the uncertain welfare gains against the transition costs of a bidding zone split, while also considering distribution effects and interactions with existing policies such as the RES subsidy scheme. Reducing frictions in redispatch, albeit with new coordination challenges, could potentially achieve similar objectives with lower transaction costs and fewer distributional impacts. |
| Keywords: | Market Design; Electricity Markets; Nodal Pricing; Energy System Modeling; Renewable Energies; Bidding Zones |
| JEL: | C61 D47 D61 Q40 |
| Date: | 2025–05–15 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2025_004 |
| By: | Asuamah Yeboah, Samuel |
| Abstract: | The paper proposes the Energy Demand–Economic Growth Dynamics Theory (ED-EGD Theory) based on empirical findings from Ghana over the period 1970 to 2011. The theory emphasises the dynamic and long-term interactions between energy demand determinants and economic growth in the context of a developing economy. By utilising a comprehensive dataset spanning four decades and applying robust econometric models (ARDL, Johansen cointegration, Gregory and Hansen structural break tests, and ARIMA forecasting), this study offers a historical foundation for understanding energy-growth linkages. The theoretical model derived from these insights remains relevant to contemporary debates on sustainable energy use and economic planning in emerging economies. While the data ends in 2011, the methodological approach and conceptual development presented in this paper provide a valuable framework for ongoing research and policy formulation. |
| Keywords: | Energy demand, economic growth, structural breaks, Ghana, ARDL, Johansen, ARIMA, fiscal policy |
| JEL: | C32 O55 Q43 |
| Date: | 2025–03–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124513 |
| By: | Lohawala, Nafisa (Resources for the Future); Arshad Rahman, Mohammad |
| Abstract: | The adoption of electric vehicles (EVs) is considered critical to achieving climate goals, yet it hinges on consumer interest. This study explores how public intent to purchase EVs relates to four unexamined factors (exposure to EV information, perceptions of EVs’ environmental benefits, views on government climate policy, and confidence in future EV infrastructure) while controlling for prior EV ownership, political affiliation, and demographic characteristics (age, gender, education, and geographic location). We use data from three nationally representative opinion polls by the Pew Research Center 2021 2023 and Bayesian techniques to estimate the ordinal probit and ordinal quantile models. Results from ordinal probit show that respondents who are well informed about EVs, perceive them as environmentally beneficial, or are confident in development of charging stations are more likely to express strong purchase interest, with covariate effects (CEs)−a metric rarely reported in EV research−of 10.2, 15.5, and 19.1 percentage points, respectively. In contrast, those skeptical of government climate initiatives are more likely to express no interest, by more than 10 percentage points. Prior EV ownership exhibits the highest CE (19.0–23.1 percentage points), and the impact of most demographic variables is consistent with the literature. The ordinal quantile models demonstrate significant variation in CEs across the distribution of purchase intent, offering insights beyond the ordinal probit model. We are the first to use quantile modeling to reveal how CEs differ significantly throughout the spectrum of purchase intent.Keywords: Decarbonization, electric vehicle, ordinal probit, Pew Research, quantile regression, technology adoption. |
| Date: | 2025–05–22 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-25-16 |
| By: | Ozili, Peterson |
| Abstract: | There are calls for monetary and fiscal authorities to use policy tools to support ongoing efforts to achieve the net zero emissions goal. However, limited attention has been paid to the regional differences in the relationship between monetary-fiscal policy and CO2 emissions. This study examines the impact of monetary and fiscal policy on carbon dioxide (CO2) emissions from fossil fuel energy consumption. The study extends the literature by linking monetary and fiscal policy to climate action for achieving the net zero emissions goal. In the empirical analysis, the monetary policy indicator is the lending interest rate, the fiscal policy indicator is the tax revenue to GDP ratio while CO2 emissions from fossil fuel energy consumption is the CO2 emissions indicator. The findings reveal that contractionary monetary and fiscal policy jointly reduce CO2 emissions in the regions of the Americas and Africa. Contractionary monetary and fiscal policy combined with higher renewable energy consumption jointly reduce CO2 emissions in the regions of the Americas, Asia and Europe. Also, contractionary monetary and fiscal policy combined with higher institutional quality jointly reduce CO2 emissions in African countries. Higher renewable energy consumption reduces CO2 emissions in Africa, Asia, Europe and Americas regions while strong institutional quality consistently reduce CO2 emissions in Europe and the Americas. The implication of the findings is that monetary and fiscal authorities should strengthen existing institutions, increase renewable energy consumption, and increase interest rate and taxes on the fossil fuel economy in a coordinated manner to reduce CO2 emissions from fossil fuel energy consumption. |
| Keywords: | CO2 emissions, monetary policy, fiscal policy, institutional policy, population, interest rate, tax revenue to GDP ratio, net zero, sustainable development, renewable energy, economic growth, Africa, Asia, Europe, Americas. |
| JEL: | E31 E52 Q52 Q54 Q56 Q57 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124261 |
| By: | Faisal Quaiyyum; Khondaker Golam Moazzem |
| Abstract: | This study examines the psychological impact of energy crises on households, utilising the Perceived Stress Scale-10 (PSS-10) to measure the stress induced by disruptions in electricity, gas, and fuel supply and pricing. Through a multivariate analysis incorporating Ordinary Least Squares (OLS) regression, Simultaneous-Quantile Regressions (SQR), Random Forest (RF) and Ordered Probit models, the research identifies the key socio-demographic and environmental factors influencing household stress. Our findings reveal that urban residency, low-income households, older individuals, and those with low environmental awareness are particularly vulnerable to stress during energy crises. Regional disparities and attitudes towards nuclear and renewable energy also significantly shape stress responses. The study emphasises the need for psychologically-informed energy policy, advocating for the inclusion of stress metrics in energy planning to enhance resilience and address the multi-dimensional nature of energy insecurity. This research contributes a novel, human-centric perspective to energy policy, urging policymakers to integrate psychosocial resilience alongside traditional technical and economic considerations in the design of energy interventions. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.21541 |
| By: | Sadiq, Kinza; Ali, Amjad; Usman, Muhammad; Sulehri, Fiaz Ahmad |
| Abstract: | Environmental sustainability has become a pressing concern amid accelerating industrialization and economic growth, which have collectively intensified ecological degradation. This study investigates the interconnected roles of green finance and renewable energy consumption in influencing ecological footprints across developed and developing countries from 1995 to 2021. Drawing on ecological modernization theory and sustainable development theory, the analysis employs panel least squares and generalized method of moments methods to examine data from fifty-four countries, using ecological footprint as the dependent variable, while renewable energy consumption and green finance are key explanatory factors. Empirical findings indicate that non-renewable energy consumption significantly increases ecological footprints in all regions, whereas renewable energy reduces ecological impact most notably in developed countries. Green finance contributes to environmental improvement in advanced economies but exhibits a positive correlation with ecological footprint in developing countries, likely due to the transitional nature of green investments. Population density consistently shows a mitigating effect on ecological degradation. These results underscore the importance of tailored green finance policies, technology transfer, and renewable energy expansion, particularly in developing nations, to support global sustainability targets. |
| Keywords: | Ecological Footprint, Green Finance, Renewable Energy Consumption, Sustainability |
| JEL: | Q2 Q5 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124498 |
| By: | Sophie M. Behr; Merve Kucuk; Maximilian Longmuir; Karsten Neuhoff |
| Abstract: | The energy crisis following Russia’s invasion of Ukraine exposed the heightened vulnerability of low-income households to rising heating costs, particularly those in energy inefficient buildings. Using data from the German Socio-Economic Panel (SOEP), this study examines the distributional impact of heating costs across income deciles and evaluates the effectiveness of policy interventions. We find that low-income tenants are the most vulnerable segment of the population, with elevated risks of energy poverty. While carbon pricing with landlordtenant cost splitting shields low-income households from carbon costs, it fails to offset overall energy price increases. In contrast, a "Worst-First" retrofit strategy, prioritizing upgrades in the least efficient buildings, substantially reduces heating costs and mitigates energy poverty. Our findings highlight the need for targeted retrofit policies to ensure both equitable decarbonization and economic relief for vulnerable households. |
| Keywords: | Distributional effects, energy efficiency, retrofit, carbon prices, energy price crisis |
| JEL: | Q41 Q48 D31 D63 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:diw:diwwpp:dp2119 |
| By: | Latino, Carmelo; Pelizzon, Loriana; Riedel, Max; Wang, Yue |
| Abstract: | Using hand-collected data on European auto asset-backed securities (Auto ABS), we examine the role of mutual funds in financing the transition to zero-emission mobility. Mutual funds, particularly those with a green mandate, tend to have a higher exposure to sustainability-transparent Auto ABS and tend to allocate more capital to deals with a higher proportion of electric vehicles. However, we find no clear preference for portfolios with lower average CO2 emissions. This behaviour suggests that, in the absence of a globally recognized framework for green securitizations, asset managers rely on sustainability proxies that are associated with the lowest disclosure processing costs. Our analysis provides important new evidence on how standardized sustainability disclosures at both the prospectus and loan levels could influence asset allocation. |
| Keywords: | Auto ABS, Car Loans, Zero- or low-emission vehicles, Mutual funds, Securitization, Sustainable Finance |
| JEL: | G11 G18 G20 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:316445 |
| By: | Kuai, Wenjing (Hunan University); Elliott, Robert J. R. (University of Birmingham); Okubo, Toshihiro (Keio University); Ozgen, Ceren (University of Birmingham) |
| Abstract: | To address climate change concerns, Japan is accelerating the greening of its economy. In this paper we analyze the characteristics of the workers that are contributing to the green transition and estimate the so-called green wage premium. Using propriety data from a recent worker-level survey for Japan, we provide a continuous measure of the degree to which a job can be considered green and document how green jobs are different from non-green jobs by sector, occupation and different demographics. Our structural model estimates of a green wage premium show that the hourly wage of green workers is 7.3% higher on average than non-green work- ers. A 10% increase in the green intensity of a job is shown to increase average hourly wages by 0.8%. Decomposition results suggest that the explainable part of the wage premium is largely due to task differences, gender disparities (in lower percentiles), and occupation. The unexplained part of the green wage premium are found mainly in high-paying green jobs where certain characteristics appear to be better rewarded, possibly driven by supply and demand imbalances. |
| Keywords: | Japan, wage gap, employment, green jobs, green transition, climate change |
| JEL: | Q50 Q52 J24 J31 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp17878 |
| By: | Koundouri, Phoebe; Alamanos, Angelos; Arampatzidis, Ioannis; Devves, Stathis; Dellis, Konstantinos; Deranian, Christopher; Nisiforou, Olympia; Sachs, Jeffrey D. |
| Abstract: | Achieving climate-neutrality is a global imperative that demands coordinated efforts from both science and robust policies supporting a smooth transition across multiple sectors. However, the interdisciplinary and complex science-to-policy nature of this effort makes it particularly challenging for several countries. Greece has set ambitious goals across different policies; however, their progress is often debated. For the first time, we simulated a scenario representing Greece’s climate-neutrality goals drawing upon its main relevant energy, agricultural and water policies, and compared it with a ‘current accounts’ scenario by 2050. The results indicate that most individual policies have the potential to significantly reduce carbon emissions across all sectors of the economy (residential, industrial, transportation, services, agriculture, and energy production). However, their implementation seems to be based on economic and governance assumptions that often overlook sectoral interdependencies, infrastructure constraints, and social aspects, hindering progress towards a unified and more holistic sustainable transition. |
| Keywords: | Climate Neutrality; Energy-emissions modelling; LEAP; FABLE Calculator; MaritimeGCH; WaterReqGCH; Decarbonization; Greece. |
| JEL: | Q28 Q54 Q58 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124660 |
| By: | Richard Schmitz; Franziska Flachsbarth; Leonie Sara Plaga; Martin Braun; Philipp H\"artel |
| Abstract: | Recent events, including the pandemic, geopolitical conflicts, supply chain disruptions, and climate change impacts, have exposed the critical need to ensure energy security and resilience in energy systems. We review existing definitions and interrelations between energy security and resilience, conceptualising these terms in the context of energy system transformations. We introduce a classification of disturbances into shock events and slow burn processes to highlight key challenges to energy system resilience. Examples illustrate their distinct impacts on technical, economic, and environmental system performance over time. We compile relevant recourse options across resilience capacity levels and system planning horizons to address these challenges, emphasising actionable strategies for an increasingly integrated energy system. Finally, we propose policy recommendations to integrate shock events and slow burn processes into future energy system planning, enabling forward-looking decision-making and system design to analyse and mitigate potential disruptions. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.18396 |
| By: | Sigl-Glöckner, Philippa; Steitz, Janek; Ziesemer, Vinzenz |
| Abstract: | The European Union has reformed its fiscal rules in late 2024, making debt sustainability analysis (DSAs) the central steering tool for European fiscal policy. DSAs will be used to project debt-to-GDP ratios and derive fiscal policy requirements. In this paper, we show that DSAs currently largely ignore economic impacts resulting from climate damages, as well as from the climate policies needed to satisfy the emissions constraint set by European climate targets. Both will likely reduce economic growth and worsen fiscal indicators, according to relevant literature. We further discuss how the growth impact of climate policy depends on the mix of policy instruments. In the presence of market failures beyond the carbon externality and uncoordinated global climate action, a balanced policy approach including public investment will likely lead to better economic outcomes than an approach based purely on carbon pricing. We show how DSAs can account for the impacts of climate damages and for policies in alignment with the current fiscal constraints (a new baseline). Illustrated by indicative simulations, we show that a more balanced climate policy approach could improve growth and possibly even fiscal indicators vis-à-vis this new baseline. We conclude that DSA methodology should be reformed to account for European climate targets and highlight some research gaps and modelling inconsistencies that need to be addressed to do so. |
| Keywords: | climate policy, fiscal rules, debt sustainability analysis |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dzimps:317068 |
| By: | Johannes Gallé; Rodrigo Oliveira; Daniel Overbeck; Nadine Riedel; Edson Severnini |
| Abstract: | This paper provides the first comprehensive analysis of how firms in emerging economies respond to carbon taxation, leveraging detailed administrative data from South Africa—a potential trailblazer for other developing countries with limited state capacity amid the growing global push for carbon pricing. We examine the dynamic impacts of the carbon tax on firm-level outcomes—such as profits, sales, capital, and labour inputs—across manufacturing and mining firms, which are key sectors in the context of the carbon tax. |
| Keywords: | Carbon pricing, Carbon tax, Firm performance, Employment |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-33 |
| By: | Mirko Sch\"afer; Tiernan Buckley; Frank Boerman; Anke Weidlich |
| Abstract: | In 2023, Germany's electricity trade balance shifted from net exports to net imports for the first time since 2002, resulting in an increasing discussion of these imports in the public debate. This study discusses different data driven approaches for the analysis of Germany's cross-border trade, with a focus on the methodological challenges to determine the origin of imported electricity within the framework of European electricity market coupling. While scheduled commercial flows from ENTSO-E are often used as indicators, generally these do not correspond to bilateral exchanges between different market actors. In particular, for day-ahead market coupling only net positions have an economically reasonable interpretation, and scheduled commercial exchanges are defined through ex-post algorithmic calculations. Any measure of the origin of electricity imports thus depends on some underlying interpretation and corresponding method, ranging from local flow patterns to correlations in net positions. To illustrate this dependence on methodological choices, we compare different approaches to determine the origin of electricity imports for hourly European power system data for 2024. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.20232 |
| By: | Ravi Vora; Guglielmo Zappala |
| Abstract: | Stringent environmental policies often lack public support. But after policies are enacted, do individual preferences about them change? Using surveys covering 38 countries around the world, we study the effect of exposure to environmental policies on policy preferences. Exploiting within-country-year, across birth-cohort variation, we find that individuals exposed to more stringent environmental policies during early adulthood are more supportive of environmental policies later on in life. This relationship suggests that a society's environmental policy attitudes evolve endogenously, with implications for forecasting the path of these economic measures, as well as for how to evaluate their normative appropriateness. |
| Keywords: | endogenous preferences, environmental policy, environmental preferences, experience, formative age, policy support. |
| JEL: | D72 D83 H23 H31 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11857 |
| By: | Michaela Kecskésová (Department of Economics, Masaryk University, Lipová 41a, 60200 Brno, Czech Republic); Štěpán Mikula (Department of Economics, Masaryk University, Lipová 41a, 60200 Brno, Czech Republic) |
| Abstract: | This paper investigates the effects of air pollution on public mood using sentiment analysis of geolocated social media data. Analyzing approximately 7 million twitter posts from the United States in July 2015, we examine how fluctuations in air quality caused by Canadian wildfires influence sentiment. We find robust evidence that higher exposure to particulate matter leads to decreased positive sentiment and increased negative sentiment. Given the importance of mood as a factor in labor productivity, our results suggest that the short-term psychological effects of air pollution, alongside its well-documented physical health impacts, should be considered in policy discussions, as negative shifts in public mood due to poor air quality could have far-reaching economic consequences. |
| Keywords: | air pollution; particulate matter; mood; sentiment analysis; Twitter; wildfires |
| JEL: | Q5 D9 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:mub:wpaper:2025-05 |
| By: | Pana Alves (BANCO DE ESPAÑA); Olivier Hubert (BANCO DE ESPAÑA) |
| Abstract: | Este trabajo cuantifica en qué medida el grado de eficiencia energética de las viviendas influye en su precio. Para ello, se analizan datos referentes a más de un millón de inmuebles residenciales vendidos en España entre 2015 y 2022. Mediante el uso de un modelo de regresión hedónica, se concluye que una mayor eficiencia energética incrementa, en promedio, el precio de la vivienda en hasta un 9, 7 % con respecto a las más ineficientes. Un efecto que, además, ha aumentado en los últimos años, especialmente en las viviendas con mayor eficiencia energética. De igual modo, tanto el tipo de vivienda como las necesidades de calefacción y de refrigeración del municipio en el que se ubica influyen en la incidencia del nivel de eficiencia energética sobre el precio. Así, en viviendas aisladas (es decir, casas unifamiliares independientes) y en aquellas que se encuentran en localidades con mayores necesidades de calefacción el grado de eficiencia energética tiene un impacto mayor sobre el precio. |
| Keywords: | mercado inmobiliario residencial, eficiencia energética, certificados de eficiencia energética, modelo de regresión hedónica, precio de la vivienda, España |
| JEL: | C21 O18 Q51 Q58 R21 R28 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2508 |
| By: | Mehdi Abbas (PACTE - Pacte, Laboratoire de sciences sociales - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - IEPG - Sciences Po Grenoble-UGA - Institut d'études politiques de Grenoble - UGA - Université Grenoble Alpes) |
| Abstract: | Souvent appelé CBAM, selon l'acronyme anglais, pour Carbon Border Adjustment Mechanism. 3 Commission européenne (2024), Carbon Border Adjustment Mechanism, disponible à l'adresse suivante : https://taxation-customs.ec.europa.eu/carbonborder-adjustment-mechanism_en. 4 D. PRESTRE, « La mise en économie de l'environnement comme règle. Entre théologie économique, pragmatisme et hégémonie », Écologie et Politique, 2016/1, n° 52, p. 19-44. |
| Keywords: | Union européenne, multilatéralisme, gouvernance climat-énergie-commerce, gouvernance polydimensionnelle, mécanisme d’ajustement carbone aux frontières, économie politique internationale de la décarbonation, transitions écologique-énergétique internationale |
| Date: | 2025–05–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05042616 |
| By: | Prince Nartey Menzo, Benjamin; Asuamah Yeboah, Samuel; Prempeh, Kwadwo Boateng |
| Abstract: | This systematic review investigates the potential of innovative climate finance instruments, specifically green bonds, blended finance, and international climate funds, to support Ghana’s climate resilience goals without compromising fiscal sustainability. Drawing on literature from 2000 to 2025 and guided by the Environmental Kuznets Curve (EKC), Sustainable Development Finance Theory, and Debt Sustainability Analysis (DSA), the study synthesises evidence from academic articles, policy documents, and institutional reports. The findings indicate that although these instruments offer strategic pathways for mobilising investment and diversifying Ghana’s financing mix, their effectiveness is undermined by regulatory fragmentation, limited institutional capacity, and procedural inefficiencies. Green bonds are constrained by governance and disclosure gaps, blended finance suffers from weak coordination and legal ambiguities, and access to international climate funds is hindered by administrative bottlenecks. The review’s originality lies in its integration of fiscal sustainability and climate finance through a multi-theoretical lens, offering a novel synthesis of how Ghana can strategically scale climate finance amid debt constraints. To enhance the impact of these mechanisms, the study recommends a comprehensive green finance framework, institutional reform, and integration of climate-risk assessments into public financial management systems. This work contributes to bridging research and policy by outlining actionable reforms and calling for econometric research to evaluate fiscal-environmental outcomes. |
| Keywords: | Climate finance, green bonds, blended finance, Ghana, debt sustainability, environmental policy, fiscal resilience, systematic review |
| JEL: | G23 H63 O55 Q01 Q56 |
| Date: | 2025–01–14 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124517 |
| By: | Vladescu, Mihaela-Irma (Institutul National de Cercetari Economice al Academiei Române); Oprea, Mihaela-Georgiana (Institutul National de Cercetari Economice al Academiei Române) |
| Abstract: | This study analyzes the position of Romania in the context of European Union from the perspective of the transition to a green economy and demographic changes. Starting from the reality of imbalances caused by economic growth policies uncorrelated with environmental protection, the study highlights the importance of the green transition as a strategic solution to current global challenges. The analysis is based on economic and environmental indicators, such as GDP/PPP, CO2 emissions and the share of renewable energy, in parallel with relevant demographic aspects. The results highlight three clusters of EU countries: developed economies with high emissions; developed countries with effective green transition policies; and countries with less developed economies, including Romania. The study recommends the formulation of policies linking investments in sustainable infrastructure with measures to boost demographic and social stability, in line with the 2030 Agenda goals. |
| Keywords: | green economy, sustainable development, demographic change, CO2 emissions, renewable energy |
| JEL: | J11 O38 Q20 Q50 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:ror:seince:250522 |
| By: | Sehoon Kim; Bernadette A. Minton; Rohan G. Williamson |
| Abstract: | We document that corporate directors’ past experience with abnormally severe climatic natural disasters shape their prosocial preferences and influence firm climate policies. Using detailed data on director career histories and county-level natural disasters, we identify Directors with Abnormal Disaster Experiences (DADEs). DADEs are significantly more likely to be affiliated with nonprofit organizations, consistent with heightened prosocial preferences. Importantly, firms with more DADEs on their boards exhibit lower scope 1 and 2 greenhouse gas emission intensities and are more likely to implement climate-related policies, including board climate oversight, emission targets, and management incentives to reduce emissions. These effects are driven by influential DADEs serving on governance, audit, or ESG committees, but absent among DADEs on finance, compensation, or risk committees, supporting a preference-based rather than risk-based mechanism. Independent directors, rather than the influence of CEOs, play a central role. The effects are stronger when disaster experiences are accumulated over longer histories and in large or high-emission firms. The results are muted in smaller disasters and not driven by recent trends in attention to climate change. Despite the role of preferences, firms with more DADEs do not exhibit worse financial or operational performance. Using director deaths as plausibly exogenous shocks, we provide causal evidence. Our findings show that directors’ experiences heighten their prosocial preferences that lead them to influence corporate climate policy. |
| JEL: | D64 G34 G41 Q54 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33750 |
| By: | de Ridder, Kilian; Schultz, Felix Carl; Pies, Ingo |
| Abstract: | Mit diesem Artikel stellen wir eine Ordnungskonzeption zur Diskussion, die spezifische Ideen zur Klimagerechtigkeit, Klima-Governance und Klimapolitik integrativ miteinander verbindet. Wir beginnen mit dem Problem, dass ein verbindliches Abkommen zur globalen Bepreisung von Kohlenstoff auf absehbare Zeit nicht zu erwarten ist. Unsere Konzeption kombiniert polyzentrische Klima-Governance und prozedurale Klima-Gerechtigkeit. Wir zeigen, dass die Befolgung prozeduraler Gerechtigkeitsnormen die Funktionsweise polyzentrischer Governance-Systeme verbessern kann. Im Gegenzug sind polyzentrische Governance-Systeme gut geeignet, Verfahrensnormen prozeduraler Klima-Gerechtigkeit umzusetzen. Unsere Ordnungskonzeption berücksichtigt auch die politische Dimension. Im Gegensatz zu einer möglichst globalen Kohlenstoffbepreisung benötigen Innovations- und Anpassungsmaßnahmen keinen weltweit bindenden Vertrag, um plausible Kandidaten für die Lösung der Klimakrise zu sein. Sie funktionieren gut in polyzentrischen Systemen. Und es ist ihnen zuträglich, wenn Normen der Verfahrensgerechtigkeit eingehalten werden. In einem komplexen Umfeld (positiver) Unsicherheit und (normativer) Uneinigkeit erweist sich unser konzeptioneller Ordnungsrahmen generell als besonders vorteilhaft. Die Klimapolitik findet in einem solchen Umfeld statt. Polyzentrismus, Verfahrensgerechtigkeit sowie Innovations- und Anpassungspolitik besitzen allesamt spezifische Eigenschaften, die sich sehr gut dazu eignen, die Herausforderungen eines solchen Umfelds zu bewältigen. Sie verbinden sich zu einem Governance-System, das flexibel und im Laufe der Zeit anpassungsfähig ist. Vor allem setzen sie keine globale Einigung über politische Allokationsentscheidungen oder über die Verteilung von Vor- und Nachteilen voraus. Darin liegt die besondere Stärke unseres konzeptionellen Ordnungsrahmens für Klima-Governance, mit wichtigen Implikationen für Klimapolitik und Klimapolitikforschung. |
| Abstract: | In this article, we present a conceptualisation that integratively combines specific ideas on climate justice, climate governance and climate policy. We begin with the problem that a binding agreement on global carbon pricing is unlikely in the foreseeable future. Our concept combines polycentric climate governance and procedural climate justice. We show that adherence to procedural justice norms can improve the functioning of polycentric governance systems. In turn, polycentric governance systems are well suited to implement procedural norms of climate justice. Our conceptualisation also takes the policy dimension into account. In contrast to global carbon pricing, political measures that foster innovation and adaptation do not require a globally binding treaty in order to be plausible candidates for tackling the climate crisis. They work well in polycentric systems. And it is beneficial to them if standards of procedural justice are followed. In a complex environment of (positive) uncertainty and (normative) disagreement, our conceptual framework proves to be particularly favourable. Climate policy takes place in such an environment. Polycentrism, procedural justice as well as innovation and adaptation policy all have specific characteristics that are very well suited to overcoming the challenges of such an environment. They combine to create a governance system that is flexible and adaptable over time. Above all, they do not require global agreement on political allocation decisions or on the distribution of advantages and disadvantages. They therefore cope well with uncertainty and reasonable disagreement. This is the particular strength of our conceptual framework for climate governance, with important implications for climate policy and climate policy research. |
| Keywords: | Klimagerechtigkeit, Verfahrensgerechtigkeit, polyzentrische Governance, gelenkter technischer Fortschritt, Klimawandel, Klimapolitik, climate justice, procedural justice, polycentric governance, guided technological progress, climate change, climate policy |
| JEL: | Q5 O3 P0 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:mlucee:316431 |
| By: | Yang, Guanyu; Rodger, Amy Dr (University of Edinburgh); Coker, Elif; Shipworth, David |
| Abstract: | As the climate crisis becomes more urgent, fostering sustainable behaviours across sectors is essential. Developing effective policy interventions requires insights into how environmental behaviours and policy support vary across geographical regions and energy, transport, and food sectors. Using data from the 2022 OECD Survey on Environmental Policies and Individual Behaviour Change across nine countries, we applied Multi-level Latent Class Analyses (MLCA) to identify population segments with different behavioural patterns in energy, transport, and food. We found distinct population segments with varying levels of sustainable behaviours and socio-demographic characteristics. More sustainable segments generally showed stronger policy support, while cross-sector analyses implied that individuals in sustainable segments of one sector were more likely to behave sustainably in others. Regional disparities exist in segment distribution across the sectors. This study is among the first to apply MLCA to cross-sectoral and cross-regional behavioural patterns, highlighting the importance of tailored policy strategies and harmonised sectoral approaches. |
| Date: | 2025–05–01 |
| URL: | https://d.repec.org/n?u=RePEc:osf:osfxxx:8y9h6_v1 |
| By: | Campos-Mercade, Pol (Department of Economics, Lund University); Ek, Claes (University of Gothenburg, Department of Economics); Söderberg, Magnus (Griffith University, Department of Accounting, Finance and Economics); Schneider, Florian (University of Copenhagen, Department of Economics) |
| Abstract: | Standard economic theory assumes that consumers ignore the externalities they create, such as emissions from burning fossil fuels and generating waste. In an incentivized study (N = 3, 718), we find that most people forgo substantial gains to avoid imposing negative externalities on others. Using administrative data on household waste, we show a clear link between such prosociality and waste behavior: prosociality predicts lower residual waste generation and higher waste sorting. Prosociality also predicts survey-reported pro-environmental behaviors such as lowering indoor temperature, limiting air travel, and consuming eco-friendly products. These findings highlight the importance of considering social preferences in environmental policy. |
| Keywords: | social preferences; prosociality; environmental behaviors; externalities |
| JEL: | D01 D62 Q53 |
| Date: | 2025–05–20 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lunewp:2025_006 |
| By: | Battocletti, Vittoria; Desiato, Alfredo; Romano, Alessandro; Sotis, Chiara; Tröger, Tobias |
| Abstract: | Many firms are making net-zero and carbon neutral pledges. In principle, these pledges should help consumers identify sustainable options, but often they do not correspond to meaningful actions. In response, both in the U.S. and in Europe, courts and policymakers are requiring firms to disclose more information regarding their climate pledges. This strategy assumes that consumers pay attention to the information provided, are able to understand it, and adjust their behavior accordingly. We test this assumption in two studies with representative samples of U.S. residents (N = 300, N = 1500) and a large-scale eyetracking study (N = 500). First, we show that while people are not aware of the meaning of the most common climate pledges, they are willing to pay a considerable premium for these claims, confirming that an unregulated market may lead to greenwashing. Second, we observe that information provision does not affect respondents when making consequential choices on how much to pay for gift cards of firms that have made a climate pledge. Third, we find that in a realistic setting where respondents receive multiple pieces of information about various products, information regarding climate pledges attracts significant attention. However, it does not improve understanding of climate pledges and actually increases recipients' confusion. Our results add to the growing evidence that individual frame interventions are not a viable shortcut to address systemic issues like global warming. |
| JEL: | K1 K2 K32 D82 D83 M38 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:316444 |
| By: | Joao Felipe Gueiros; Hemanth Chandravamsi; Steven H. Frankel |
| Abstract: | This paper explores the use of deep residual networks for pricing European options on Petrobras, one of the world's largest oil and gas producers, and compares its performance with the Black-Scholes (BS) model. Using eight years of historical data from B3 (Brazilian Stock Exchange) collected via web scraping, a deep learning model was trained using a custom built hybrid loss function that incorporates market data and analytical pricing. The data for training and testing were drawn between the period spanning November 2016 to January 2025, using an 80-20 train-test split. The test set consisted of data from the final three months: November, December, and January 2025. The deep residual network model achieved a 64.3\% reduction in the mean absolute error for the 3-19 BRL (Brazilian Real) range when compared to the Black-Scholes model on the test set. Furthermore, unlike the Black-Scholes solution, which tends to decrease its accuracy for longer periods of time, the deep learning model performed accurately for longer expiration periods. These findings highlight the potential of deep learning in financial modeling, with future work focusing on specialized models for different price ranges. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.20088 |
| By: | Alice Ciccone; Cloé Garnache; Gøril Louise Andreassen |
| Abstract: | We conduct a large-scale randomized controlled trial to examine the effects of time- and location-specific, distance-based road pricing on travel behavior and driving externalities. Using financial incentives and a smartphone app that automatically tracks participants' travel behavior across different modes, we find that road pricing reduces driving externalities by 5.3%, implying a price elasticity of -0.07 to -0.15 for the external costs of driving. Our findings suggest that drivers of battery-electric vehicles (BEVs) are much less responsive to road pricing than drivers of non-BEVs. Furthermore, we find that providing information on the expected benefits of road pricing enhances public support for such policies, whereas experience with road pricing has little impact. |
| Keywords: | road pricing, public support, electric vehicles, driving externalities, field experiment, information provision. |
| JEL: | H23 R41 D83 C93 Q54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11867 |
| By: | Nikolaos Kalyviotis; Christopher D. F. Rogers; Geoffrey J. D. Hewings |
| Abstract: | Five life cycle assessment (LCA) methods to calculate a project s environmental value are described: (a) process-based, (b) hybrid, (c) pseudo, (d) simplified, and (e) parametric. This paper discusses in detail and compares the two methods with the least inherent uncertainty: process-based LCA (a bottom-up methodology involving mapping and characterising all processes associated with all life cycle phases of a project) and a hybrid LCA (the EXIOBASE analysis, which incorporates top-down economic input output analysis and is a wider sector-by-sector approach). The bottom-up nature of process-based LCA, which quantifies the environmental impacts for each process in all life cycle phases of a project, is particularly challenging when applied to the evaluation of infrastructure as a whole. Conversely, combining the environmental impact information provided in EXIOBASE tables with the corresponding input output tables allows decision makers to more straightforwardly choose to invest in infrastructure that supports positive environmental outcomes. Employing LCA and a bespoke model using Pearson s correlation coefficient to capture environmental interdependencies between the transport sector and the other four economic infrastructures showed the transport and energy sectors to be most closely linked. Both integrated planning and innovative technologies are needed to radically reduce adverse environmental impacts and enhance sustainability across transport, waste, water, and communication sectors. |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2504.20098 |
| By: | Bagnoli, Lisa Serena; Delgado, Lucia; Luza, Jerónimo; Mitnik, Oscar A.; Pasman, Clara; Serebrisky, Tomás |
| Abstract: | Over the past decades, Latin America and the Caribbean have experienced a significant increase in natural disasters, posing significant threats to infrastructure and economic activity, particularly in regions with poor infrastructure. Understanding the patterns in recovery time after disasters is key to designing accurate responses to natural hazards. In this paper, we develop a methodological approach and use Hurricane Odile, which struck Baja California Sur, Mexico, in September 2014, as a case study to understand the recovery paths following such disasters. We rely on nighttime lights data to capture the initial impact and eventual recovery of electricity service and economic activity in the area of impact of the hurricane. We find that the average luminosity dropped to 78% of pre-hurricane levels immediately after the event and did not fully recover within a year. Impacts are heterogeneous, with localities such as Cabo San Lucas and San José del Cabo experiencing more severe impacts and slower recovery compared to La Paz, which recovered faster. These results suggest that disaster evaluation, mitigation policies, and preventive measures against disaster impacts should be tailored to local realities. |
| Keywords: | Resilience;natural disasters;electricity;Economic activity recovery;nighttime light;Hurricane;Mexico |
| JEL: | O13 Q54 R11 |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14098 |
| By: | Ed Cornforth; Lea de greef; Patricia Sánchez Juanino |
| Abstract: | This paper explores the sensitivity of the macroeconomic impacts of climate change scenarios to underlying assumptions about the policy environment and agent responses. Using the National Institute Global Econometric Model (NiGEM), we analyse the Net Zero long-term scenario developed by the Network for Greening the Financial System (NGFS) modifying the different assumptions related to agent expectations, monetary policy reactions, and fiscal recycling mechanisms. We assess how these options influence the economic outcomes of the transition to net zero. |
| Keywords: | NiGEM, macroeconomic model, expectations, net zero scenario, NGFS, monetary policy, fiscal policy |
| JEL: | E70 E17 Q54 |
| URL: | https://d.repec.org/n?u=RePEc:nsr:niesrd:567 |