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on Energy Economics |
| By: | Piero Basaglia; Sophie M. Behr; Moritz A. Drupp |
| Abstract: | We investigate how fuel taxation reduces climate and pollution externalities by evaluating the world’s largest environmental tax reform. Using spatially detailed emissions data from more than 1, 000 European regions in a synthetic difference-in-differences framework, we evaluate the impact of Germany’s 1999 ecological tax reform on transport-related carbon and air pollutant emissions. We document sizable aggregate reductions for all emissions, exceeding 10 percent on average per year relative to synthetic baselines. Using official damage valuations, we estimate avoided external costs of more than €100 billion, two-thirds of which stem from health benefits due to reduced air pollution. Emission reductions and associated monetized benefits are larger in lower-income regions, contrasting with a slightly regressive distribution of fuel costs. These findings underscore the importance of incorporating air quality co-benefits when evaluating the efficiency and distributional effects of fuel and carbon pricing. |
| Keywords: | environmental policy, externalities, fuel tax, carbon tax, synthetic difference-in-differences, tax elasticity, climate, pollution |
| JEL: | Q58 H23 I18 R48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11949 |
| By: | Calel, Raphael; Dechezlepretre, Antoine; Venmans, Frank |
| Abstract: | Carbon markets have emerged in recent decades as one of the most important tools for curbing industrial greenhouse gas emissions, but they present a number of novel enforcement challenges as compared to more conventional pollution regulations—new regulators with narrow authority, lack of legal precedent, and more. To shed light on the practical issues involved in policing carbon markets, we present the first comprehensive analysis of the EU Emissions Trading System, a single program that was policed by 31 different national regulators. We find generally high rates of compliance coupled with low rates of enforcement, a pattern that is known in the literature as ‘Harrington’s paradox.’ Variation in the probability and severity of fines explain just one tenth of the variation in compliance rates. Meanwhile, other enforcement strategies that have been pointed to as resolutions to Harrington’s paradox in other applications, such as ‘naming and shaming, ’ appear to have had little discernible effect. |
| Keywords: | pollution control; compliance; enforcement; cap-and-trade |
| JEL: | Q50 Q52 C14 |
| Date: | 2023–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128531 |
| By: | Millward-Hopkins, Joel; Hickel, Jason; Nag, Suryadeepto |
| Abstract: | Background: Increasing global use of energy and materials is breaching planetary boundaries, but large inequalities mean that billions of people still cannot meet basic needs. Researchers have estimated minimum energy and material requirements to secure human wellbeing. However, it remains unclear whether countries with shortfalls in energy and material use are increasing their consumption towards sufficient levels, and whether countries with surplus consumption are reducing theirs to sustainable levels. Methods: In this empirical modelling study, we compared large datasets of national energy and material footprints with estimates of the energy and material required for each country to bring its poorest populations up to decent living standards (DLS). We then estimated the share of countries that are in shortfall and in surplus, for both energy and material consumption, and assessed to what degree countries are moving in the right direction, given existing growth rates. For countries with consumption shortfalls, we calculated the time it will take, at current growth rates, to reach energy and material use sufficient for DLS. Findings: The world currently uses more energy and materials than is required to achieve DLS for all (approximately 2·5 times more), even with existing within-country distributions (approximately 1·5 times more). However, 50% of nations currently have energy shortfall, and 46% have material shortfall. For most of these countries, growth in energy and material use is too slow to achieve DLS by 2050. Indeed, with current growth rates and national inequalities, at least one in five countries will remain in shortfall in 2100. By contrast, the growth rates of countries in surplus are four times higher than the growth rates of countries in shortfall, exacerbating ecological pressures. Interpretation: Currently, the world is not moving towards a just and ecological future for all. Growth in energy and material use is occurring primarily in countries that do not need it and is not occurring fast enough (or is declining) in countries that do need it. A substantial redistribution of energy and material use is needed—both within countries and between them—to achieve faster progress on DLS with less ecological pressure. Indeed, this redistribution is imperative if we are to achieve DLS for all while also achieving the Paris Agreement objectives. Convergence between the Global North and South is necessary but is not occurring fast enough. At current rates, convergence will not occur within the next 100 years. Funding: European Research Council. |
| JEL: | Q56 O40 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128547 |
| By: | Benhao Du; Thomas Treillard; Francois Wang |
| Abstract: | This paper explores stochastic control models in the context of decarbonization within the energy market. We study three progressively complex scenarios: (1) a single firm operating with two technologies-one polluting and one clean, (2)two firms model and (3) two firms without any regulatory incentive. For each setting, we formulate the corresponding stochastic control problem and characterize the firms' optimal strategies in terms of investment and production. The analysis highlights the strategic interactions between firms and the role of incentives in accelerating the transition to cleaner technologies. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.14286 |
| By: | Inaki Veruete Villegas (Charles University, Institute of Economic Studies at Faculty of Social Sciences & The Environment Center, Czech Republic & BETA, CNRS, University of Strasbourg); Milan Scasny (Charles University, Institute of Economic Studies at Faculty of Social Sciences and The Environment Center, Czech Republic.) |
| Abstract: | The current geopolitical landscape, exemplified by the Russian invasion of Ukraine, has heightened concerns about energy security. This study delves into the nexus of energy security and natural gas utilization in the Czech Republic, offering a thorough analysis amid these turbulent times. Despite the fact that the environment/energy-extended input-output models have been significantly improved, they still fail to fully capture a sector’s role in an economic system characterized as a network of sectors as they primarily analyze sectors as both ends of the supply chain, ignoring a significant role of transmission sectors. We overcome this gap by applying a multidimensional approach to scrutinize the energy supply chain in order to assess the repercussions of heightened natural gas prices post-Russian invasion. Specifically, we combine domestic energy input-output demand and price models to assess the economic impacts under constrained alternative energy scenarios, particularly relevant given the challenges of replacing Russian gas. Additionally, leveraging network analysis techniques —node and edge betweenness centrality—and the hypothetical extraction method are used to identify critically important structural elements within the country’s natural gas consumption chain. While the former pinpoints vital transmission sectors based on gas flow, the latter gauges sectoral significance by simulating complete disconnections, without being influenced by the number of times the sector appears in the supply chain path. Last, we develop a complete map of the embodied energy flows. Structural Path Analysis traces intermediate product flows, enabling the quantification of embodied energy across the supply chain and its representation as a tree-like structure. Our findings reveal significant implications of natural gas price fluctuations on key manufacturing industries, notably those engaged in international trade which are vulnerable to energy supply and price disruptions. We emphasize the critical role of sectors providing essential household goods and services, like energy, food, and transportation. Strategic interventions may be necessary to safeguard domestic demand and the competitive edge of vital sectors like automotive. As energy security remains a dynamic and evolving challenge, our research contributes significantly to the ongoing discourse on energy resilience, particularly for countries dependent on energy imports. Despite the fact our study is applied to the energy field, this framework is useful to analyze the footprint of any inputs, including usage of critical materials, environmental inputs, or emissions, which face similar complexities. |
| Keywords: | Energy-Extended Input-Output Aanalysis; Energy Supply Chain; Natural Gas Footprint; Embodied Energy; Betwenness Centrality; Hypothetical Extraction; Structural Path Analysis; Input-Output Price Model |
| JEL: | C67 Q43 H56 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2024_18 |
| By: | Magaletti, Nicola; Notarnicola, Valeria; di Molfetta, Mauro; Leogrande, Angelo |
| Abstract: | This work tests the relationship of the building sector's carbon dioxide (CO₂) emissions with a set of environmental, social, and governance (ESG) indicators in an international panel of countries. Using machine learning approaches alongside traditional econometric techniques, the work identifies strong predictors of emissions intensity in the nature of scientific productivity, healthcare infrastructure, and good governance. The findings indicate higher scientific productivity and better government governance are associated with reduced CO₂ emissions from building stocks, while the effectiveness of government and R&D expenditures are found to be associated with higher emission rates, possibly due to the broader urban infrastructures of the developed nations. With the help of clustering as well as permutation-based measures of importance, the work establishes the complex dynamics interlinking development, knowledge creation, and environmental efficiency. The result provides practical indications for policymakers who aim to harmonize the national ESG policies with the targets of decarbonization in the built space. |
| Keywords: | Carbon Emissions, ESG Indicators, Building Sector, Machine Learning, Governance Effectiveness |
| JEL: | C55 H52 O38 O44 Q56 |
| Date: | 2025–06–20 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125068 |
| By: | Stefaniia Parubets; Hisahiro Naito |
| Abstract: | This study evaluates the effectiveness of satellite-derived tropospheric nitrogen dioxide (NO2) concentrations as a proxy for economic activity in Japan. While nighttime light (NTL) data has been widely used to approximate economic output, recent research has highlighted its' key limitations. In particular, the relationship between NTL and economic outcomes weakens in sub-sample analyses with shorter time spans or restricted geographic coverage. NTL data also faces several key limitations: saturation in dense urban areas reduces measurement accuracy, capturing nighttime emissions fails to account for essential daytime economic activity, inconsistent sensors across different satellites introduce measurement variability, and the technology's sensitivity diminishes when differentiating economic development beyond certain brightness thresholds. Our results show that NO2's effectiveness as an economic proxy is highly dependent on spatial resolution. Using 0.25 degree esolution NO2 data, we find statistically significant relationships with prefecture-level GDP across multiple sectors. Mining shows the strongest elasticity (3.02%), followed by electricity, gas, and water (1.51%), and manufacturing (0.48%). Agriculture, forestry, and fisheries exhibit negative associations (-0.11%), consistent with vegetation serving as NO2 sinks. However, when using higher resolution 0.1 degree NO2 data, these relationships largely disappear, with most coefficients becoming statistically insignificant and sometimes counterintuitive. These findings highlight the importance of matching satellite data resolution to the geographic scale of economic analysis, with coarser resolution being optimal for prefecture-level analysis in Japanese context. This research demonstrates NO2's potential as a more reliable alternative to NTL for economic monitoring when appropriately calibrated. This study examines the effect of exports on subnational income and regional inequality between urban (trade hub) and rural (non–trade hub) areas, using nighttime luminosity as a proxy for economic activity. We construct a country-period panel dataset covering 104 countries, based on five-year average data from 1997 to 2020. Trade hub areas are defined as the union of areas within a 30 km or 50 km radius of each of the three largest ports and three international airports in a country, while all remaining areas are classified as non–trade hub areas. To address endogeneity, we employ a two-stage least squares (2SLS) approach, using predicted trade as an instrumental variable. Predicted trade is derived from a dynamic gravity equation in which time dummies are interacted with sea and air transport distances. This instrument captures variation in transportation costs driven by technological advances that have shifted trade from sea to air, thereby influencing trade volumes. Our results show that a 1\% increase in exports raises nighttime luminosity by 0.3% in trade hub areas and by 0.06\% in non–trade hub areas. Export growth also leads to population increases in trade hub areas, but not in non–trade hub areas. Furthermore, we find that a 1% increase in exports raises nighttime luminosity per capita by 0.18% in trade hub areas and by 0.06% in non–trade hub areas. These findings suggest that while exports stimulate economic activity in trade hubs, population inflows partially offset per capita gains. Nonetheless, exports significantly exacerbate regional inequality. |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:tsu:tewpjp:2025-002 |
| By: | Miguel Martinez Rodriguez; Chi Kong Chyong; Timothy Fitzgerald; Miguel Vazquez Martínez |
| Keywords: | Hydrogen infrastructure, pipeline regulation, third-party access (TPA), unbundling, market design |
| JEL: | L95 L51 Q48 Q42 D47 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2514 |
| By: | Venkatachalam Anbumozhi (Economic Research Institute for ASEAN and East Asia (ERIA)); Kaliappa Kalirajanl (Emeritus Professor, Australian National University); Ayu Pratiwi Muyasyaroh (Economic Research Institute for ASEAN and East Asia (ERIA)); Veerapandian Karthick (Assistant Professor, Institute for Social and Economic Change, Bengaluru, India) |
| Abstract: | Carbon pricing is a policy tool designed to account for the external costs of carbon emissions, such as damage to crops, healthcare costs, and property loss due to climate change. It attaches a price to these costs and allocates responsibility to the sources of emissions. This approach helps incentivise the reduction of carbon emissions and encourages the adoption of technologies aimed at achieving a net zero economy. Revenue generated from carbon pricing can be reinvested by companies to support sustainable practices, including employee benefits and health insurance. While a few countries in the Association of Southeast Asian Nations (ASEAN) and East Asia have implemented carbon pricing mechanisms, there is limited understanding of individual preferences regarding these mechanisms at the national and regional levels. The Carbon Border Adjustment Mechanism of the European Union aims to standardise carbon prices for internationally traded products. However, there is a lack of knowledge about preferences for such policy instruments across key stakeholders and countries. A survey has been conducted to elicit stakeholders’ preferences and willingness to pay (WTP) for a carbon price in ASEAN and East Asia. The overall proportion of ‘yes’ answers to the WTP question was around 70%. Mean WTP corresponds to an additional price of US$10–US$15. The analysis of more than 500 consumer responses revealed that several modifiers impact the choice of higher and lower WTP additional costs for climate actions. Amongst the consumer groups, academia and household residents are more concerned about climate change and its harmful consequences but have less knowledge and lower appreciation of external pressures such as the European Union’s Carbon Border Adjustment Mechanism. This, coupled with the already high electricity price, could have resulted in the lower WTP by the private sector respondents. Three null hypotheses on the effects of WTP on carbon emission reductions, revenue recycling, and regional cooperation are tested. The low WTP underscores the urgency of measures to overcome market size and technical and financing constraints, and to address regulatory hurdles that raise transaction costs, to achieve industrial competitiveness |
| Keywords: | carbon price; climate change; net zero economy; revenue recycling; willingness to pay; ASEAN and East Asia |
| JEL: | Q49 Q58 C46 |
| Date: | 2025–06–04 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2025-03 |
| By: | Sulaimanova, Burulcha (OSCE Academy, Bishkek); Azhgaliyeva, Dina (Asian Development Bank); Holzhacker, Hans (Central Asia Regional Economic Cooperation Institute); Overland, Indra (Norwegian Institute of International Affairs) |
| Abstract: | This study investigates factors influencing household cooling choices in Central Asia, focusing on air-conditioning and fans/sunscreen films. Using data from the 2023 “Household Access to Energy in the Fergana Valley” survey in the Kyrgyz Republic, Tajikistan, and Uzbekistan, the analysis employs a multinomial probit model to examine socioeconomic, environmental, and power supply factors. Across the three countries, it finds that 48% of households use fans or sunscreen films (without air-conditioning), 30% use no cooling, and 22% use air-conditioning, noting significant variations between countries. Cooling degree days (CDD) significantly impact cooling appliance adoption, with higher CDD regions more likely to use cooling solutions. Power outages negatively affect air-conditioning adoption but not fans/sunscreen films, highlighting the importance of power stability. Robustness checks confirm that power supply reliability is crucial for cooling choices. The findings suggest policy implications, including the potential of solar panels to meet summer energy demands. This research underscores the need to address power sector reliability and climate adaptation in vulnerable regions. |
| Keywords: | heat waves; environmental extremes; infrastructural adaptations; power outages; cooling technologies; Central Asia |
| JEL: | Q41 Q54 R21 |
| Date: | 2025–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0787 |
| By: | Nicholas Z. Muller |
| Abstract: | Despite the central role of firewood in the development of the early American economy, prices for this energy fuel are absent from official government statistics and the scholarly literature. This paper presents the most comprehensive dataset of firewood prices in the United States compiled to date, encompassing over 6, 000 price quotes from 1700 to 2010. Between 1700 and 2010, real firewood prices increased by between 0.2% and 0.4%, annually, and from 1800 to the Civil War, real prices increased especially rapidly, between 0.7% and 1% per year. Rising firewood prices and falling coal prices led to the transition to coal as the primary energy fuel. Between 1860 and 1890, the income elasticity for firewood switched from 0.5 to -0.5. Beginning in the last decade of the 18th century, firewood output increased from about 18% of GDP to just under 30% of GDP in the 1830s. The value of firewood fell to less than 5% of GDP by the 1880s. Prior estimates of firewood output in the 19th century significantly underestimated its value. Finally, incorporating the new estimates of firewood output into agricultural production leads to higher estimates of agricultural productivity growth prior to 1860 than previously reported in the literature. |
| JEL: | N11 N12 N51 N52 N71 N72 Q23 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33974 |
| By: | Hoogland, Kelly PhD; Hardman, Scott PhD |
| Abstract: | Battery-electric vehicles (BEVs) are central to California’s strategy to reduce transportation-related emissions; however, low-income households face significant structural barriers to adoption. These barriers include the high upfront purchase costs of new BEVs, limited supply of used BEVs, limited access to home charging, and low awareness of BEVs. To better understand these obstacles and identify effective policy responses, our research team analyzed survey data collected from 2, 051 priority population households throughout California between December 2023 and June 2024. The survey asked households about their vehicle purchasing behavior, ownership costs, and socio-demographics. |
| Keywords: | Engineering |
| Date: | 2025–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt5996v4gn |
| By: | Henze, Levi |
| Abstract: | Die Bundesregierung plant ein Subventionspaket, um die Strompreise zu senken. Wir diskutieren mögliche Hürden und simulieren eine kurzfristig umsetzbare Strompreissenkung von 2, 5 ct/kWh für die Industrie und 5 ct/kWh für private Haushalte: Diese besteht aus der dauerhaften Absenkung der Stromsteuer, einem temporären Netzentgeltzuschuss und einem Brückenstrompreis für die energieintensive Industrie. Über alle Verbrauchsgruppen gleichmäßig zu entlasten, ist nicht praktikabel. Bis 2030 entstehen leicht positive Effekte auf die industrielle Wertschöpfung von jährlich bis zu 10 Milliarden Euro. Für private Haushalte sind Entlastungen bis zu 130 Euro im Jahr zu erwarten, die sich jedoch erst zum Ende der Legislaturperiode einstellen. Für den Bundeshaushalt entstehen bis zu 19 Milliarden Euro jährlicher Zusatzbelastungen. Die induzierte Produktionsleistung wird in der kurzen Frist bis zu 3, 6 Millionen Tonnen CO2-Emissionen außerhalb des EU-ETS I erzeugen. Die dauerhafte Absenkung der Stromsteuer dürfte jedoch langfristig jährliche Emissionseinsparungen in der gleichen Größenordnung verursachen. Ein Netzentgeltzuschuss sollte als temporäre Maßnahme ausgestaltet werden. Die dauerhafte Absenkung der Stromsteuer muss anderweitig gegenfinanziert werden. Ein von der EU-Kommission derzeit angedachter gesonderter Industriestrompreis sollte ebenfalls befristet eingesetzt werden. Substanzielle Maßnahmen, um die Strompreise langfristig zu senken, wie die staatliche Beteiligung am Netzausbau, ein ungehinderter Ausbau der Erneuerbaren und eine ausgewogene Kraftwerkstrategie sollten demgegenüber Priorität haben. |
| Keywords: | Klima, Energie, Fiskalpolitik |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:dzimps:320380 |
| By: | Handy, Susan L.; Volker, Jamey M. B. |
| Abstract: | Guidelines for the California Environmental Quality Act require the mitigation of projected increases in vehicle miles traveled (VMT) stemming from highway expansion projects. Quantifying the likely effects of proposed mitigation measures enables an assessment of the degree to which the mitigation program offsets the estimated increase in VMT for a project. The purpose of this report is to provide an overview of possible estimation methods for 45 mitigation strategies and recommendations on the most appropriate method for estimating the reduction in the number of miles of vehicle travel that could be expected to result from the implementation of a specific measure. The methods take into account the extent of the measure but may not account for the specific context. In general, two types of methods are available: travel demand forecasting models, and effect-size approaches. For several measures, this report concludes that the reduction in VMT cannot be estimated based on the available evidence. The Evidence Assessment Report provides as assessment of the strength of the evidence for each of the measures (Handy et al., 2024). |
| Keywords: | Social and Behavioral Sciences, Vehicle miles traveled, mitigation strategies, effect size, quantification |
| Date: | 2025–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt29r3h971 |
| By: | Stefano Di Bucchianico; Mario Di Serio; Matteo Fragetta; Giovanni Melina |
| Abstract: | A Bayesian factor-augmented interacted vector autoregression framework purified of expectations is employed to analyze how government spending shocks have impacted CO2 emissions in the United States from the 1980s to the pre-pandemic period. Consumption-generated emissions are found to have generally risen following fiscal expansions, although their elasticity to government spending has declined substantially over time—with the five-year elasticity dropping from about 0.5 in the early 1980s to 0.1 by 2019. In contrast, positive government spending shocks increased production-generated emissions in the early 1980s—with a five-year elasticity near 0.4—but reversed course by the 1990s, eventually reaching an elasticity of –0.5 by the end of the sample. Examination of time-varying interaction variables suggests that environmental regulation, tertiarization, and a larger share of spending on public goods can mitigate—or even reverse—the emissions growth associated with economic expansions driven by government spending. Furthermore, government consumption, rather than investment, is chiefly responsible for these shifts in emissions elasticities. |
| Keywords: | government spending, fiscal policy, CO2 emissions |
| JEL: | C32 C38 E62 Q54 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11960 |
| By: | Carry, Inga |
| Abstract: | In summer 2023, the EU entered a strategic raw materials partnership with Chile. While the EU is seeking to gain better access to critical raw materials such as lithium and copper, Chile is aiming to diversify its raw materials sector and boost local value creation. Despite progress having been made in the scientific and technological spheres, industrial cooperation has so far fallen short of expectations. To fully realise the potential of the partnership, the EU should seek to ensure that its existing initiatives with Chile are more closely aligned and should make more effective use of synergies between raw materials, renewable energy and hydrogen. This will require stronger investment incentives for European companies. Given the new US trade policy, it is especially important that the EU underpins its partnership promises through concrete actions in order to demonstrate that it is a reliable partner. |
| Keywords: | raw materials, Chile, EU, geopolitical dynamics, lithium, copper, industrial cooperation, partnership, renewable energy, hydrogen, mining companies, CODELCO |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:319693 |
| By: | Ioannou, Petros; Liu, Xiaocheng; Waqas, Muhammad; Barth, Matthew; Boriboonsomsin, Kanok; Peng, Dongbo |
| Abstract: | The transition to zero-emission freight transportation is a critical component of California’s climate strategy, yet the adoption of battery electric trucks (BETs) in both long-haul and short-haul operations faces significant challenges. Limited charging infrastructure, long charging durations, grid reliability concerns, and regulatory constraints—such as Hours of Service (HOS) requirements—pose operational hurdles for fleet operators. This study develops a comprehensive optimization framework for electric truck fleet management, addressing the interplay between infrastructure limitations, operational uncertainties, and energy cost fluctuations. This research will also provide scalable insights for policymakers and industry leaders, supporting the broader transition to sustainable freight transportation. Investments in ultra-fast charging infrastructure, extended-range BETs, and microgrid-based energy management are key to accelerating the electrification of freight operations while ensuring cost efficiency and operational resilience. For long-haul electric trucking, this study leverages real-world data to optimize charging stops, minimize delays, and ensure regulatory compliance. Using a combination of mixed-integer programming and linearization techniques, the proposed model dynamically identifies cost-effective charging strategies, balancing factors such as driver wages, energy costs, and charging delays. For short-haul trucking, this study introduces a novel dispatching model—the electric vehicle routing problem with backhauls and time windows under uncertainty. View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, Sustainable freight transportation, Electric Vehicle Routing Problem, Metaheuristics, Robust Optimization, Microgrid, Platooning |
| Date: | 2025–07–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt1048s9wt |
| By: | Alessandro Ramponi; Sergio Scarlatti |
| Abstract: | We propose a credit risk model for portfolios composed of green and brown loans, extending the ASRF framework via a two-factor copula structure. Systematic risk is modeled using potentially skewed distributions, allowing for asymmetric creditworthiness effects, while idiosyncratic risk remains Gaussian. Under a non-uniform exposure setting, we establish convergence in quadratic mean of the portfolio loss to a limit reflecting the distinct characteristics of the two loan segments. Numerical results confirm the theoretical findings and illustrate how value-at-risk is affected by portfolio granularity, default probabilities, factor loadings, and skewness. Our model accommodates differential sensitivity to systematic shocks and offers a tractable basis for further developments in credit risk modeling, including granularity adjustments, CDO pricing, and empirical analysis of green loan portfolios. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2506.12510 |
| By: | Anna D. Mata; Héctor M. Núñez |
| Abstract: | This study examines the energy efficiency and environmental performance of Mexico's manufacturing sector across regions. We employ a Data Envelopment Analysis model that optimizes the weighted output-input ratio for each decision-making unit. Specifically, a non-radial directional distance function model is used to account for both desirable outputs and undesirable outputs, represented by greenhouse gas emissions. The findings show that including undesirable outputs reduces the estimated economic efficiency. Over the analysis period, the production frontier shifted only modestly. Regionally, northern states perform best, while southern states lag behind, revealing considerable potential for national energy and emission savings. |
| Keywords: | Undesirable output;Energy efficiency improvements;GHG emission performance;Directional distance function |
| JEL: | C61 D24 Q43 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:bdm:wpaper:2025-10 |
| By: | Aurore Fransolet; Amy Phillips; Deborah Lambert; Julien Vastenaekels; Tao An Tung |
| Abstract: | This report introduces the main results from the first phase of the COGITO project, a prospective research project that explores scenarios for a just transition to carbon neutrality and climate resilience in the Brussels Capital region (BCR) at horizon 2050. More specifically, it presents the prospective diagnosis of social-ecological inequalities in the BCR in the three interlinked domains considered as part of COGITO: green infrastructure, housing and mobility. The main objective of such diagnosis is to “understand, in a systemic and dynamic way, the present and past evolutions both of the system itself and of its environment” (Goux-Baudiment 2013, p. 16, personal translation). This work is based on an original social-ecological justice framework that combines perspectives of the (social-)environmental and the ecological justice models. It considers five types of social-ecological inequalities in relation with intergenerational, intragenerational and interspecies justice: 1) the unequal contribution to environmental degradation, 2) the unequal distribution of environmental goods and burdens, 3) the unequal impacts of environmental policies, 4) the unequal participation in environmental policy- and decision-making processes, and 5) the unequal recognition of the needs of vulnerable/vulnerabilized groups.The prospective diagnosis has involved the development of a retrospective analysis of social-ecological inequalities in the BCR based on documentary research, exploratory interviews, and thematic workshops. In this context, the past evolution and current state of social-ecological inequalities in green infrastructure, housing and mobility in the region, as well as the factors that have influenced these inequalities has been explored. This analysis has highlighted the complex and multidimensional nature of social-ecological inequalities in these different domains, alongside their many interrelated influencing factors. |
| Keywords: | Just transition; Social-ecological inequalities |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/391574 |
| By: | Manuel Llorca; Ana Rodriguez-Alvarez |
| Keywords: | Energy poverty, policy evaluation, stochastic frontier analysis, Spain, Bono Social Eléctrico |
| JEL: | C23 D12 I38 Q48 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2516 |
| By: | Moro, Alessandro; Zaghini, Andrea |
| Abstract: | With the aim of providing a comprehensive framework of analysis, the paper develops a signaling model in which green bonds are able to increase the environmental performance of companies, as they allow investors, endowed with environmental preferences, to uncover the adoption of clean production processes. Companies relying on green technologies are rewarded by lower financing costs. In particular, green bonds encourage more polluting firms to embark on the transition toward a cleaner production. Relying on a large sample of companies located worldwide and implementing a difference-in-difference strategy, we successfully test the model implications. The analysis also reveals that green bonds issued to finance mitigation policies are the most effective in improving companies' environmental performance. In line with model predictions, these bonds display the largest yield differential (greenium) with respect to their conventional peers. |
| Keywords: | Sustainable finance, ESG scores, Green bonds, Greenium, Corporate bonds |
| JEL: | G11 G12 G24 Q51 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfswop:320433 |
| By: | Liang , Pinghan (Sun Yat-sen University); Lou , Yadi (Sun Yat-sen University); Tian , Shu (Asian Development Bank) |
| Abstract: | Since the early 21st century, air quality concerns in the People’s Republic of China (PRC) have garnered significant attention from both the public authorities and society. This study investigates the effects of digital environmental monitoring technology on air pollution. Specifically, we explore the data from government procurement of digital environmental monitoring technologies over the 2014–2019 period. The baseline results indicate that on average, each additional environmental contract per 100, 000 residents signed by governments is associated with an 8-percentage point reduction in city PM2.5 levels. This effect arises from more accurate pollutant identification, which strengthens enforcement of environmental regulations, facilitating any necessary transition and, where applicable, orderly exit of heavily polluting enterprises, and fosters green innovation. Further, this effect exhibits regional variation in the extent of environmental concern and the level of information disclosure. The results suggest that technology-driven environmental governance, supported by public engagement and policy frameworks, plays a crucial role in enhancing air quality in the PRC. |
| Keywords: | digital environmental monitoring; PM2.5; public monitoring; information disclosure |
| JEL: | O18 O33 Q50 |
| Date: | 2025–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0788 |
| By: | Humberto Valera (UPPA - Université de Pau et des Pays de l'Adour); Franck Ravat; Philippe Roose; Jiefu Song; Nathalie Vallès-Parlangeau |
| Abstract: | ECOFLOC: outil de mesure énergétique multi-composants |
| Date: | 2025–03–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05093346 |
| By: | Eric Benyo, Reinhard Ellwanger, Stephen Snudden |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:wlu:lcerpa:jc0158 |
| By: | Martin Bordon Lesme (Department of Applied Economics, Autonomous University of Barcelona.); Gerardo Blanco (Escuela de Ingeniería Eléctrica, Pontificia Universidad Católica de Valparaíso.); Jaume Freire-Gonzalez (Institute for Economic Analysis (CSIC) and Barcelona School of Economics.); Emilio Padilla Rosa (Department of Applied Economics, Autonomous University of Barcelona.) |
| Abstract: | Energy efficiency is critical for decarbonization, yet its benefits are often undermined by the rebound effect, particularly in emerging economies where pent-up demand is high. Traditional static models fail to capture the temporal dynamics, behavioral feedbacks, and systemic instabilities that shape policy outcomes. This study addresses these gaps by developing a novel system dynamics model to serve as a ’policy sandbox.’ We analyze the dynamic consequences of policy interventions, moving beyond conventional metrics to assess household welfare trajectories. Our findings reveal that while isolated efficiency gains can backfire, conventional corrective taxes, when interacting with realistic household financial behaviors, can engineer a devastating energy poverty trap—a state where vulnerable households pay more for a reduced level of essential energy service. This research unmasks a fundamental tension not just between sustainability and equity, but between a policy’s intended equilibrium and the survivability of its transient path. We provide a robust analytical tool for designing adaptive, justice-centered policies capable of navigating this complex landscape and avoiding the most severe, unintended consequences of the energy transition. |
| Keywords: | Rebound effect, Energy justice, System dynamics modeling, Time-varying policy, Emerging economies, Energy affordability |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:uab:wprdea:wpdea2505 |
| By: | Abatemarco, Antonio (CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy); Dell'Anno, Roberto (CELPE - CEnter for Labor and Political Economics, University of Salerno, Italy); Lagomarsino, Elena (Department of Economics, University of Genoa - Italy) |
| Abstract: | The implementation of environmental policies varies substantially across geographical areas. This paper proposes a conceptual and methodological framework—adapted from the health economics literature—to assess equity in the allocation of environmental policy effort. We define “environmental care” as the set of local policy interventions aimed at improving environmental quality within an area, and evaluate its distribution relative to environmental need. Using direct and indirect standardization techniques, we measure horizontal inequity (unequal care among areas with similar need) and vertical inequity (differential care in response to differing needs). Applying this framework to traffic-related air pollution policies in Italian municipalities from 2012 to 2021, we find that the observed reduction of overall inequality in environmental care is mostly driven by a decline in hori- zontal inequity. However, we find evidence of persistent socioeconomic disparities, with lower-income municipalities receiving disproportionately less policy effort relative to their environmental needs. |
| Keywords: | environmental equity; environmental inequality; air pollution; distributive justice |
| JEL: | Q53 Q58 R58 |
| Date: | 2025–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:sal:celpdp:0172 |
| By: | Deschenes, Olivier; Jarvis, Stephen; Jha, Akshaya; Radford, Alan D |
| Abstract: | There is a large literature documenting the adverse impacts of air pollution on human health. In contrast, there is a paucity of research studying the effects of air pollution on animal health. We fill this gap, utilizing five years of data on over seven million visits to veterinary practices across the United Kingdom. Leveraging within-city variation in daily monitor-measured air pollution levels, we find that increases in fine particulate matter (i.e., PM2.5) lead to significant increases in the number of vet visits for both cats and dogs. In aggregate, these estimates indicate that reducing ambient PM2.5 levels to a maximum of 5µg/m3 as recommended by the World Health Organization would result in eighty thousand fewer vet visits each year (a 0.4% reduction). |
| Keywords: | pets; air pollution; animal health |
| JEL: | I00 Q51 Q53 Q57 |
| Date: | 2024–10–17 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128526 |
| By: | Aurore Fransolet; Josefine J.V. Vanhille |
| Keywords: | Transition juste; Justice sociale-écologique; Inégalités environnementales; Belgique |
| Date: | 2023–11–07 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/365729 |
| By: | Ambec, Stefan; Crampes, Claude; Lamp, Stefan |
| Abstract: | The energy transition requires significant investment in intermittent renewable energy sources, such as solar and wind power. New generation capacities are generally procured through fixed price contracts, such as power purchase agreements and contracts for difference, or feed-in tariffs. With these designs, renewable technologies are selected based on their generation, regardless of their adequacy with demand and supply by other technologies. We show that fixed-price contracts implement the optimal portfolio of renewable technologies if the price is adjusted with a technology-specific bonus-malus system that depends on the correlation between renewable energy production and the wholesale electricity price. We estimate the bonus-malus for solar and wind power in California, France, Germany, and Spain and decompose it to identify the key market factors driving the adjustment. We argue that the bonus-malus measures the cost of integrating intermittent generation into the energy mix. Therefore, it should be added to the levelized cost of energy (LCOE) to obtain the cost of generating an additional megawatt-hour with a specific renewable technology. |
| Keywords: | Electricity market; levelized cost of energy; climate change; intermittent renewable energy; feed-in tariff; power purchase agreement; contract for difference. |
| JEL: | D47 L23 Q41 Q48 |
| Date: | 2025–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:130654 |
| By: | Heimann, Tobias; Wähling, Lara-Sophie; Honkomp, Tomke; Delzeit, Ruth; Pirrone, Alessandra; Schier, Franziska; Weimar, Holger |
| Abstract: | Bioenergy with carbon capture and storage (BECCS) is a crucial element in most modelling studies on emission pathways of the Intergovernmental Panel on Climate Change to limit global warming. BECCS can substitute fossil fuels in energy production and reduce CO2 emissions, while using biomass for energy production can have feedback effects on land use, agricultural and forest products markets, as well as biodiversity and water resources. To assess the former pros and cons of BECCS deployment, interdisciplinary model approaches require detailed estimates of technological information related to BECCS production technologies. Current estimates of the cost structure and capture potential of BECCS vary widely due to the absence of large-scale production. To obtain more precise estimates, a global online expert survey (N = 32) was conducted including questions on the regional development potential and biomass use of BECCS, as well as the future operating costs, capture potential, and scalability in different application sectors. In general, the experts consider the implementation of BECCS in Europe and North America to be very promising and regard BECCS application in the liquid biofuel industry and thermal power generation as very likely. The results show significant differences depending on whether the experts work in the Global North or the Global South. Thus, the findings underline the importance of including experts from the Global South in discussions on carbon dioxide removal methods. Regarding technical estimates, the operating costs of BECCS in thermal power generation were estimated in the range of 100–200 USD/tCO2, while the CO2 capture potential was estimated to be 50–200 MtCO2yr−1 by 2030, with cost-efficiency gains of 20% by 2050 due to technological progress. Whereas the individuals' experts provided more precise estimates, the overall distribution of estimates reflected the wide range of estimates found in the literature. For the cost shares within BECCS, it was difficult to obtain consistent estimates. However, due to very few current alternative estimates, the results are an important step for modelling the production sector of BECCS in interdisciplinary models that analyse cross-dimensional trade-offs and long-term sustainability. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ifwkie:319917 |
| By: | Yukihiro Nishimura (Osaka University and CESifo) |
| Abstract: | This paper develops a Kantian equilibrium framework, subsuming the global pollution model with private ownership, wherein agents condition their contributions on a universalizable moral imperative reflecting income and preference heterogeneity. After showing a specific proportionality assumption linking Kantian reasoning to other agents’ behavior that must make the Kantian equilibrium coincide with the Lindahl equilibrium, we show that the level of the public good increases with income inequality. Applying this framework to a global pollution model, we demonstrate that the Lindahl allocation in the global pollution model may fail to Pareto dominate the voluntary contribution (disagreement) equilibrium. In the global public good problem, we compare the Lindahl allocation with other proposed solutions, so we will discuss the nature of inter-country transfers and whether it Pareto dominates the disagreement equilibrium. Our analysis contributes to a re-interpretation of the morally grounded mechanisms for global public good provision, offering a bridge between normative ethics and economic design. |
| Keywords: | Global externalities, Kantian equilibrium, Income inequality, International emissions trading |
| JEL: | H41 D63 Q54 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:osk:wpaper:2504 |
| By: | Hastreiter, Nikolaus |
| Abstract: | This paper investigates the effectiveness of collective investor engagement in driving corporate climate action. Empirically, I focus on Climate Action 100+ (CA100+), the world’s largest investor coalition on climate change. To address common measurement issues in previous research, I conduct a multidimensional assessment of companies’ climate action. In particular, I collect new primary data on the ambition of carbon emission reduction targets and use the ClimateBERT model to analyse climate-related disclosure. To isolate the causal impact of CA100+, I examine the selection of the coalition’s focus companies and employ a Difference-in-Differences analysis. While the findings suggest that CA100+ has had no effect on companies’ disclosures or reductions in carbon emissions, I observe a significant impact on targets. However, this effect holds only for medium- and long-term targets, not in the short-term, and is exclusively driven by companies potentially selected based on prior investor knowledge. Overall, this study finds limited effectiveness of collective engagement through CA100+. It raises questions about the importance of investor selectivity for engagement success and highlights the risk of companies backloading their decarbonisation efforts. |
| JEL: | E22 Q50 |
| Date: | 2024–11–25 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128523 |
| By: | Mahdi Ghodsi (The Vienna Institute for International Economic Studies, wiiw); Francesca Micocci; Armando Rungi |
| Abstract: | This paper investigates how the presence of foreign direct investment (FDI) contributes to domestic innovation with a focus on green technologies in the European regions between 2013 and 2018. Using a rich dataset combining patent data, firm-level data and FDI proxies, we identify a clear pattern when foreign investors are technologically sophisticated, domestic firms in the regions where they invested show a higher propensity for patenting. The patenting activity by the parent companies of multinational enterprises (MNEs) and their corporate perimeter plays a more crucial role than local foreign subsidiaries. Furthermore, we find that the technological focus of MNEs – green vs. non-green – shapes the direction of these spill-overs. Notably, we provide novel evidence of linkages between the green patenting activity of MNE parents located abroad and the green innovation of domestic firms in the European Union, mediated through foreign subsidiaries operating in close proximity. Policy efforts aiming to foster green innovation should therefore prioritise attracting foreign investors with strong innovation records in environmentally sustainable technologies. |
| Keywords: | technological spill-overs, multinational enterprises, FDI, domestic innovation, firm-level data |
| JEL: | O32 F23 O34 L23 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:wii:wpaper:266 |
| By: | Kalantzis, Fotios; Revoltella, Debora; Gatti, Matteo |
| Abstract: | Leveraging data from the European Investment Survey (EIBIS) spanning 2019-2022, encompassing the pandemic crisis and the 2022 energy price shocks, our study investigates how uncertainty influence firms' climate action investment decisions in Europe at a time of one of the largest energy shocks in recent history. Our results offer insights into firms' investment behaviors across various dimensions including country, sector, and firm size. We find that increasing energy prices drove European firms to invest in both energy efficiency and climate action investments to maintain competitiveness, albeit with a more pronounced effect on the former. By contrast, uncertainty deters firms from investing in climate action and reaching their potential, making them prioritize short-term challenges over long-term climate concerns. Additionally, we observe that firm characteristics, notably energy intensity, play a significant role in shaping investment decisions, with firms operating in energyintensive sectors demonstrating a greater likelihood to invest in climate action regardless of uncertainty levels. Our results reveal the challenges and trade-offs that firms face when investing in climate action under uncertainty and high energy prices and emphasize the need for consistent and supportive policies to foster a green transition. |
| Keywords: | European Investment Bank Investment Survey, Uncertainty, Energy efficiency, Corporate investments, Energy costs, Climate Action |
| JEL: | D22 P28 Q5 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:319634 |
| By: | Marten Ovaere; Mark Vergouwen (-) |
| Abstract: | We use high-frequency electricity consumption data from a natural experiment in Flanders to study the interacting effects of real-time electricity pricing, which encourages consumption during periods of low generation cost, and peak demand charges, which discourage simultaneous demand that stresses local grids. Our matched difference-in-differences estimates show that real-time pricing increases household peak demand, while peak demand charges reduce it by 1–3% on average. Reductions are largest among electric vehicle owners, who shift up to 0.75 kWh per day to nighttime hours. These household-level responses result in lower coincident grid-level demand peaks, reducing the need for costly grid reinforcement. |
| JEL: | C23 D12 Q48 L94 D91 Q41 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:25/1115 |
| By: | Kim, Keuntae; Volker, Jamey M.B.; McGinnis, Claire; Zepeda, Melissa; Barajas, Jesus M. |
| Abstract: | In 2018, pursuant to Senate Bill (SB) 743 (2013), the Governor’s Office of Planning and Research (OPR) and the California Natural Resources Agency promulgated regulations and technical guidance that eliminated automobile level of service (LOS) as a transportation impact metric for land development projects under the California Environmental Quality Act (CEQA), and replaced it with Vehicle Miles Traveled (VMT). The authors investigated the equity effects of VMT mitigation measures and developed a framework for evaluating those effects at the project level. The authors then applied the framework to two highway expansion case studies in California. They found that most VMT mitigation would be implemented at least partially within the project impact areas, as well as some disadvantaged communities, but would generally benefit communities outside of the project area, too. Most of the proposed mitigation measures would not displace existing residences or businesses or pose a significant risk of gentrification. Many of the measures showed substantial potential to improve accessibility to jobs, though less potential to improve accessibility to grocery stores. Community engagement and empowerment was harder to gauge. Overall, the five-part framework can provide a first-cut assessment of the equity effects of VMT mitigation measures during the environmental review phase of VMT-generating projects, like roadway expansions. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, VMT, mitigation, equity, environmental justice, induced travel, gentrification, displacement, accessibility |
| Date: | 2025–06–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt3vq3k9h3 |
| By: | Guanyu LU; Kenta TANAKA; Toshi H. ARIMURA |
| Abstract: | This study examines the impact of the Tokyo and Saitama regional emissions trading systems (ETSs) on the productivity of Japan’s manufacturing installations. Utilizing data from the Economic Census for Business Activity and the Census of Manufacture, we measure the total factor productivity (TFP) of both regulated and unregulated manufacturing installations. Subsequently, we estimate the extent to which the ETSs impact the TFP of regulated manufacturing installations. Our findings indicate that the TFP of regulated installations increases after the implementation of ETS compared to that of unregulated installations. Furthermore, the results of factor analysis suggest that investment trends in equipment differ between regulated and unregulated installations. These findings underscore the interaction between environmental regulations and installation productivity in Japan, contributing to policy discussions on effective climate change mitigation strategies. |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25063 |
| By: | Schenuit, Felix |
| Abstract: | In den Diskussionen, die auf EU-Ebene über das neue Emissionsminderungsziel für 2040 geführt werden, rückte zuletzt die Rolle internationaler Zertifikate in den Fokus. Die Diskussionen gewinnen auch deshalb an Dynamik, weil die Bundesregierung ihre Unterstützung für das Ziel, die Emissionen um netto 90 Prozent gegenüber dem Wert von 1990 zu mindern, an die Bedingung knüpft, bis zu drei Prozent der Zielvorgabe mittels internationaler Zertifikate aus Partnerländern zu erfüllen. Wie das Ziel konkret ausgestaltet werden soll und was daraus für die europäischen Politikinstrumente folgt, wird in den bevorstehenden EU-Gesetzgebungsprozessen Anlass für Konflikte sein. Trotz offener Fragen zur Qualität, Zusätzlichkeit und Verfügbarkeit der Zertifikate ist eine frühzeitige Debatte über ihre möglichen Funktionen sinnoll - um Politikinstrumente gegebenenfalls weiterzuentwickeln und spätere Korrekturen zu ermöglichen. Zielführend wäre es, den Einsatz internationaler Zertifikate auf dauerhafte CO2-Entnahmetechnologien zu konzentrieren, die in der EU selbst nur begrenzt skalierbar sind. Internationale CO2-Entnahme-Zertifikate könnten als Ausgleich von Restemissionen nicht nur einen Beitrag zur Bewältigung der noch bevorstehenden Herausforderungen auf dem Weg zu Treibhausgasneutralität leisten; die Etablierung einer institutionalisierten Nachfrage nach qualitativ hochwertigen Entnahmemethoden würde zugleich eine wichtige Grundlage für das Erreichen netto-negativer Emissionen schaffen. |
| Keywords: | EU, Emissionsminderungsziel für 2040, CO2-Entnahme-Zertifikate, Treibhausgasneutralität, Klimapolitik, Netto-Null-Treibhausgasemissionen, Carbon Management, CCS, CCU, CDR, Klimarahmenkonvention (UNFCCC) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpakt:319695 |
| By: | Marwil J. Davila-Fernandez; Christian R. Proano; Serena Sordi |
| Abstract: | Drawing on the political science literature, we develop a heterogeneous agents macro model that differentiates between left- and right-wing voting preferences in two political dimensions: the economic-distributive (ED) and the socio-cultural (SC) in particular regarding climate change. The model is compatible with the emergence of "ED-left/SC-left", "ED-left/SC-right", "ED-right/SC-left", and "ED-right/SC-right" coalitions, each associated with a tax rate on the skill wage premium and on carbon emissions. Human capital accumulation regarding results in a wage differential that influences production and feedback on inequality. Through induced technical change, taxing emissions impacts the development of carbon-neutral production techniques, affecting output and ultimately feeding political attitudes. We study analytically and through numerical simulations the conditions resulting in the coexistence of multiple stable equilibria and the possible implications for carbon emissions. Three results are worth highlighting. First, when income inequality, captured by the skill premium, is the primary motivation to become more educated, left-wing ED coalitions generate higher inequality than their right-wing counterpart. Second, it is shown that the consensus required to implement a carbon tax is only the first part of the problem. Absolute decoupling requires a sufficiently strong response from technology favouring carbon-neutral production techniques. Finally, our model suggests that the SC dimension matters most under medium levels of inequality. When inequality is very high, as in the pre-war period, ED dominates the debate, and there is a right-wing SC consensus. As inequality fell during the 1950s and 1960s, socio-cultural aspects gained importance. This change led to a situation where "ED-left/SC-left", "ED-left/SC-right", "ED-right/SC-left", and "ED-right/SC-right" stable coalitions became possible, creating a disconnect between education and left-wing support. |
| Keywords: | political cleavages, climate change, inequality, human capital, carbon tax |
| JEL: | C62 D72 Q01 Q54 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-37 |
| By: | Paola Galfrascoli; Gianna Serafina Monti; Elisa Ossola |
| Abstract: | We propose a synthetic green indicator incorporating several dimensions contributing to the definition of greenness at the bond level. We include information on the presence of a green label attributed by a data provider based on the use of proceeds of the funds raised and certifications by external institutions. Variables regarding how the proceeds of green bonds are managed and whether a commitment exists to ongoing reporting on the funded projects are also added to account for the transparency of the bond issuance. To establish its role among the determinants of green bond yields, we perform a regression analysis consistent with the literature on measuring the greenium. The study comprehends a sample of European corporate green bonds between 2013 and 2024, and results highlight a significant negative premium, indicating that, ceteris paribus, “the more green†a bond is, the higher its greenium. |
| Keywords: | corporate green bonds, green premium, sustainable finance, climate policy, multilevel models. |
| JEL: | G12 G28 Q5 C21 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:mib:wpaper:556 |
| By: | Howarth, Candice; Mcloughlin, Niall; Murtagh, Ellie; Kythreotis, Andrew P.; Porter, James |
| Abstract: | The integration of climate change mitigation and adaptation policy – or ‘climate policy integration’ (CPI) – is key to mainstreaming and harmonising both of these crucial strands of action in policy responses to climate change worldwide. However, little is known about how CPI can be applied in practice beyond single policy areas. This paper addresses this gap by considering how CPI can be better implemented in the context of responding to extreme heat, a climate change impact and risk that is growing in international importance. Using the heatwaves that occurred in the UK during the summer of 2022 as a case study, the paper explores the extent to which key stakeholders consider the integration of adaptation and mitigation to be important; perceptions of the feasibility of such integration; and the main enablers and challenges associated with integrating adaptation and mitigation. They find appetite for integrating mitigation and adaptation but a lack of integration happening in practice. |
| Keywords: | heat risk; adaptation; migration; integration; resilience; climate resilient net zero |
| JEL: | Q54 Q58 |
| Date: | 2024–10–21 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128525 |
| By: | Blasberg, Alexander; Kiesel, Rüdiger; Taschini, Luca |
| Abstract: | Using Credit Default Swap spreads, we construct and validate a forward-looking, market-implied carbon risk (CR) factor and show that the impact of carbon regulations on firms’ credit risk varies with the regulation’s scope and stringency, and with the speed of mandated carbon reduction. We find that explicit carbon pricing sharpens lenders’ evaluations, resulting in firms under such regimes incurring three times the additional credit protection costs. This impact escalates with the proportion of a firm’s direct emissions subject to regulation – the policy’s stringency – and varies by the sector in which the firm operates. With an increase in the CR factor, lenders foresee higher costs for short-term transitions. |
| Keywords: | carbon risk; climate change; climate finance; credit risk; transition risk |
| JEL: | C21 C23 G12 G32 Q54 |
| Date: | 2024–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128528 |
| By: | Francesco Ravazzolo (Norwegian Business School, Norway; Free-University of Bozen-Bolzano, Italy; Rimini Centre for Economic Analysis); Luca Rossini (University of Milan, Italy; Fondazione Eni Enrico Mattei, Italy); Andrea Viselli (University of Milan, Italy) |
| Abstract: | This paper introduces a novel Bayesian reverse unrestricted mixed-frequency model applied to a panel of nine European electricity markets. Our model analyzes the impact of daily fossil fuel prices and hourly renewable energy generation on hourly electricity prices, employing a hierarchical structure to capture cross-country interdependencies and idiosyncratic factors. The inclusion of random effects demonstrates that electricity market integration both mitigates and amplifies shocks. Our results highlight that while renewable energy sources consistently reduce electricity prices across all countries, gas prices remain a dominant driver of cross-country electricity price disparities and instability. This finding underscores the critical importance of energy diversification, above all on renewable energy sources, and coordinated fossil fuel supply strategies for bolstering European energy security. |
| Keywords: | Dynamic panel model, Mixed-frequency, Bayesian time series, Electricity Prices, Renewable energy sources, Market Integration |
| JEL: | C11 C32 C33 C55 Q40 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:rim:rimwps:25-06 |
| By: | Keitaro Nagai (Hakuoh University) |
| Abstract: | This study investigates the transition from coal-to petroleum-based production in Japan’s chemical industry during the high-growth era by focusing on the Ministry of International Trade and Industry (MITI) raw material conversion policies. Through case studies, this study reexamines the prevailing view of MITI’s role in Japan’s economic development, highlighting a collaborative policymaking process between the government and industry. The analysis elucidates how acetaldehyde production shifted swiftly to petrochemical methods during the Second Petrochemical Phase Plan (1960–1964) as MITI’s policies incorporated earlier proposals from industry. For ammonia, the transition happened through the First and Second Large-Scale Expansion Plans launched in 1965 and 1967, respectively. These policies were formally established by the MITI, but they were implemented in response to requests from industry stakeholders. |
| Keywords: | Industrial Policy, MITI (Ministry of International Trade and Industry), HighGrowth Era, Chemical Industry, Energy Transition |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:wap:wpaper:2516 |
| By: | Aurore Fransolet; Jönne Huhnt; Alexandre Désaubry; Julien Vastenaekels; Amy Phillips; Deborah Lambert |
| Abstract: | In recent years, the concept of ‘just transition’ has evolved from a narrow social project, aimed at protecting workers in industries affected by environmental regulations, to a comprehensive social-ecological project aimed at addressing social inequalities and environmental degradation in an integrated way. This integrated pursuit of social justice and environmental sustainability objectives is particularly relevant for the urban context, where social and ecological issues concentrate and intertwine. Despite the growing prominence of just transition imperatives in urban agendas, questions of what a just and sustainable city could and should look like remain under-investigated. Against that background, the main objective of the present research is to explore urban visions that explicitly combine social justice and environmental sustainability objectives. More specifically, this research aims at 1) outlining contrasting visions of a just and sustainable city in the Brussels Capital Region, 2) identifying the actors who support these visions, and 3) highlighting the areas of consensus and debate on the issue. With that aim in mind, we conducted a survey of Brussels’ stakeholders based on a Q-methodology, i.e. a statistically supported survey method for understanding the plurality of perspectives on a topic within a group. This survey was carried out between December 2023 and January 2024, and 32 representatives of administrations and other public institutions, NGOs and associations, business federations, trade unions and citizen movements took part. The statistical analysis of survey data and the interpretation of its results led to the definition of three contrasted urban visions bridging social justice and environmental sustainability objectives: The ‘Smart City’, the ‘Foundational City’ and the ‘Exnovation City’. The main distinguishing characteristics of these visions of the just and sustainable city reflecting the different perspectives of Brussels' stakeholders are presented in the summary figure. By identifying and exploring three original visions of Brussels bridging social justice and environmental sustainability objectives, this research contributes to understanding the contours of the future(s) towards which just urban transitions could orient, alongside the main disagreements and consensus on this issue. It thus provides fruitful ground for open debate and further research on just transitions in Brussels-Capital Region and other metropolitan areas. |
| Keywords: | Just transition; Just sustainabilities |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ulb:ulbeco:2013/391572 |
| By: | Wietschel, Martin; Thielmann, Axel; Gnann, Till; Hettesheimer, Tim; Langkau, Sabine; Neef, Christoph; Plötz, Patrick; Sievers, Luisa; Tercero Espinoza, Luis Alberto; Edler, Jakob; Krail, Michael; Doll, Claus; Link, Steffen; Stephan, Annegret; Scherrer, Aline; Klobasa, Marian; Speth, Daniel; Wicke, Tim; Schicho, Michaela; Kamamia, Ann Wahu; Loibl, Antonia |
| Abstract: | When looking at the key issues along the entire battery value chain, it becomes clear that there are no insurmountable obstacles to the continued widespread market diffusion of battery-electric cars. However, there are still several technical, economic, environmental, regulatory and social challenges to address in the coming years. These challenges can be overcome, provided there is the political will to do so. The most important findings are summarized below and discussed in greater detail in the sections on the individual questions. Note: This policy brief was published under the same title in 2020, but its content has been completely revised, and new aspects have been added. It reflects the state of research as of February 2025. |
| Keywords: | Electric vehicle, battery, electromobility, sustainable mobility |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fisipp:320419 |
| By: | Imke Reimers; Benjamin Reed Shiller; Benjamin R. Shiller |
| Abstract: | We analyze how self-driving vehicles (SDVs) influence commuter behavior and returns to long-lived public transit investments. Using a commuting mode model estimated on detailed home and work location data from Greater Boston, we simulate the widespread entry of SDVs, which offer passive travel similar to transit but use existing road networks. We find that SDVs increase vehicle miles by 40% while decreasing public transit use by about 10%. Transit improvements continue to moderately boost revenues and lower miles driven, but their effects on mileage are small compared to SDVs. These findings highlight planning challenges posed by the emergence of SDVs. |
| Keywords: | self-driving vehicles, public transit investment, infrastructure planning, transportation economics |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11956 |
| By: | Kalantzis, Fotios; Kesidou, Effie; Ri, Anastasia; Roper, Stephen |
| Abstract: | This paper investigates how firms navigate the dual challenges of digitalisation and climate change. Our comprehensive approach considers climate change strategies, distinguishing adaptation-only, mitigation-only and 'dual' adaptation and mitigation strategies. Drawing on theoretical insights from the literature on digital affordances, we argue that digitalisation enables firms to recognise better the opportunities and risks associated with climate change. These affordances significantly influence strategic decisions regarding adaptation, mitigation, or a combination of both, ultimately impacting the intensity of their implementation efforts. To empirically examine these dynamics, we analyse data from the 2022 and 2023 European Investment Bank Investment Survey waves. Our sample includes over 24, 000 firms, spanning small and medium-sized enterprises (SMEs) and large businesses across 27 EU Member States and the USA. Our results reveal that firms with higher digitalisation are more likely to adopt a 'dual' strategy that combines mitigation and adaptation efforts rather than pursuing a single climate strategy or no climate response. Furthermore, we find a positive relationship between digitalisation and climate action intensity across mitigation and adaptation measures. Importantly, these patterns hold consistently across different sectors and firm sizes. Overall, our study sheds light on the critical role of digital technologies in shaping firms' climate responses, emphasising the need for organisations to leverage their technological strengths to address environmental challenges effectively. |
| Keywords: | Business, Strategic management, Digitalization, Climate change, Climate protection, Environmental management, EU countries, USA |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:319607 |
| By: | Osti, Davide |
| Abstract: | I briefy review and comment on some papers about climate change economics through time and space along the following exposition, especially centering on the work of William D. Nordhaus' dynamic integrated climate economy model (DICE) and other integrated assessment models to study the effects of climate change on temperatures, amenities, and the economy more broadly. |
| Keywords: | climate change, DICE model, IAMs models, parameter uncertainty |
| JEL: | C15 C51 D58 D62 D63 D71 D72 F43 F53 Q32 Q34 Q51 Q52 Q53 Q54 Q55 Q56 |
| Date: | 2025–06–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:124987 |
| By: | Ferrazzi, Matteo; Kalantzis, Fotios; Zwart, Sanne |
| Abstract: | We present an index to measure climate risk for over 170 countries, separately assessing physical and transition risk while accounting for adaptation and mitigation capacity. Crucially, we carefully select the most relevant risk factors and assign the related weights based on the literature and empirical evidence. This integrated approach distinguished our index from existing rankings which, through the use of numerous equally-weighted indicators, implicitly assign equal importance to risk factors. Our climate risk country scores for 2024 show that low-income economies are more vulnerable to physical risk, in particular to extreme weather events and excessive heat. Countries dependent on fossil fuel revenues are among the most exposed to transition risk, while high-income economies, which generate significant emissions, tend to face high transition risks as well. The scores can be used as a risk management tool, both at the country level and, as starting point, for the assessment of economic entities in each geography. In addition, they can also help to identify mitigation and adaptation priorities and related financing needs. The accompanying excel file (available upon request) allows to easily assess the impact of risk factors on the final scores and to adapt the methodology to alternative purposes. |
| Keywords: | Climate risk, Climate change, Climate scores, Physical risk, Transition risk |
| JEL: | F64 Q5 Q50 Q54 Q56 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:319635 |
| By: | Guglielmo Maria Caporale; Luis Alberiko Gil-Alana; Nieves Carmona-González |
| Abstract: | This paper analyses trends and persistence in atmospheric pollution in ten US cities over the period from January 2014 to January 2024 using fractional integration methods. The results support the hypothesis of long memory and mean reversion in atmospheric pollution in all cities examined. They also indicate that Boston is the only city in the sample where atmospheric pollution exhibits a significant positive linear trend, though it is also characterised by the lowest degree of integration, which implies that shocks have transitory effects and mean reversion occurs at a fast rate. |
| Keywords: | atmospheric pollution, particular matter (PM2.5), fractional integration, long memory, persistence |
| JEL: | C22 Q53 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11957 |
| By: | Irma Alonso-Álvarez (BANCO DE ESPAÑA); Daniel Santabárbara (BANCO DE ESPAÑA) |
| Abstract: | In this paper, we present a straightforward structural model of the oil market designed to disentangle demand and supply shocks. This model is regularly employed and updated in the Banco de España to enhance the understanding of oil market dynamics. Building on the work of Kilian and Murphy (2014), we introduce a novel business cycle measure based on the co-movement of real commodity prices to capture global demand shocks, and also include an oil-specific demand shock. Our impulse response functions and historical decomposition align with previous studies and effectively capture significant historical milestones. |
| Keywords: | oil structural model, supply, demand, global real activity, oil-specific demand, VAR, sign restrictions. |
| JEL: | Q41 Q43 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2513e |
| By: | Hasna, Z.; Hatton, H.; Jaumotte, F.; Kim, J.; Mohaddes, K. |
| Abstract: | This paper investigates how climate policies affect low-carbon innovation (as measured by patents) and assesses the link between such innovation and economic activity. Climate policies, including international cooperation, spur both specific and overall innovation, with regulations, emissions-trading systems, and expenditure measures such as R&D subsidies and feed-in tariffs being particularly impactful. In turn, low-carbon innovation raises economic activity as much as other types of innovation and past technological revolutions. However, the mechanisms are different: low-carbon innovation increases capital accumulation, while other types of innovation increase total factor productivity (TFP). |
| Keywords: | Low-Carbon Innovation, Growth, Climate Policies, Climate Change, Porter Hypothesis |
| JEL: | F64 H23 O33 O44 Q55 Q56 Q58 |
| Date: | 2025–06–30 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camjip:2516 |
| By: | Bazoumana Ouattara |
| Abstract: | This paper examines how African cities can reconcile rapid urbanization and development imperatives with urgent decarbonization goals through structural transformation. It begins by mapping key sources of urban carbon-energy poverty, inefficient buildings, poor planning, transport systems, waste management, and construction practices-and quantifies their contributions to emissions. |
| Keywords: | Structural transformation, Urbanization, Green cities, Investments, Governance, Carbon emission intensity, low-carbon future |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:unu:wpaper:wp-2025-43 |
| By: | Ozili, Peterson K |
| Abstract: | This study examines the effect of CO2 emissions from gaseous fuel consumption on financial inclusion through physical financial access points in non-crisis years. The findings reveal that higher CO2 emissions are associated with a high level of financial inclusion in European, Asian and developing countries, implying that CO2 emissions do not decrease the level of financial inclusion. CO2 emissions decrease the level of financial inclusion in African countries that have strong institutions and a high lending rate. CO2 emissions also decrease the level of financial inclusion in developing countries that have a high lending rate. The implication is that policymakers and banks in European, African and Asian countries should reduce their reliance on physical financial access points to increase financial inclusion. They should adopt digital financial inclusion strategies to mitigate the adverse effect of CO2 emissions on the physical financial access points provided by banks to increase financial inclusion. |
| Keywords: | climate change, CO2 emissions, financial inclusion, institutional quality, inflation, interest rate, financial access points, bank branch, ATM, Africa, Asia, Europe, developing countries. |
| JEL: | G21 Q01 Q50 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125032 |
| By: | Rik Rozendaal |
| Abstract: | This paper studies the relationship between climate policy, market power and innovation. Using data on patenting and firms' balance sheets, I document that firms with a higher degree of market power are, on average, more invested in dirty technologies than their direct competitors. I then develop a model of directed technical change with strategic innovation incentives, incorporating the empirical evidence. A carbon tax affects market power and both the intensity and the direction of innovation. In the calibrated model, a carbon tax lowers aggregate markups and increases clean innovation while also increasing dirty innovation by some firms. |
| Keywords: | climate policy, market power, innovation, directed technical change |
| JEL: | O30 O44 Q55 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11938 |
| By: | Theile, Philipp (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | With the growing adoption of electric vehicles, understanding user charging behavior is increasingly important for informing operational, investment, and policy decisions regarding their integration into the power system. While utility functions are commonly used to describe user preferences in charging behavior models, most existing studies rely on formulations with limited theoretical consistency and empirical validation, potentially leading to biased expectations. This paper empirically compares different utility function specifications and examines their implications for charging behavior modeling and charging station profitability. I introduce a novel discrete choice model framework to efficiently estimate utility function parameters from revealed preference data. Using a dataset of observed charging sessions at public charging stations in Germany, the model identifies accurate utility functions, uncovers charging preferences, and simulates station segment viability. The results suggest that charging utility is non-linear: marginal utility decreases with charged energy and marginal disutility increases with charging duration. An interaction between energy and duration leads to higher marginal valuation of energy for longer charging durations. Stations profit from inelastic demand driven by users who highly value energy content, are less price sensitive, and engage in high-value activities at the charging location, such as in urban areas or traffic hubs. |
| Keywords: | Electric Vehicles; charging behavior; utility function; discrete choice model; revealed preference data; charging station viability |
| JEL: | C25 C44 C53 Q40 R40 |
| Date: | 2025–07–02 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2025_007 |
| By: | Michael G Pollitt; Marta Moretto Terribile |
| Keywords: | Zonal pricing, electricity markets, congestion management, bidding zones |
| JEL: | L94 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2515 |
| By: | Federico Fabio Frattini; Francesco Vona; Filippo Bontadini; Italo Colantone |
| Abstract: | What are the job multipliers of the green industrialization? We tackle this question within EU regions over the period 2003-2017, building a novel measure of green manufacturing penetration that combines green production and regional employment data. We estimate local job multipliers of green penetration in a long-difference model, using a shift-share instrument that exploits plausibly exogenous changes in non-EU green innovation. We find that a 3-years change in green penetration per worker increases the employment-to-active population ratio by 0.11 pp. The effect is: persistent both in manufacturing and outside manufacturing; halved by agglomeration effects that increase the labour market tightness; stronger for workers with high and low-education; and present also in regions specialized in polluting industries. When focusing on large shocks in a staggered DiD design, we find ten times larger effects, particularly in earlier periods. |
| Keywords: | green industrialisation, local job multipliers, employment effects of the green transition, shift-share IV design, difference-in-differences |
| JEL: | J21 O14 R11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11939 |
| By: | Tröster, Bernhard; Papatheophilou, Simela; Küblböck, Karin |
| Abstract: | Global demand for specific mineral raw materials is increasing, driven largely by the energy and digital transition. Although the EU is making efforts to boost domestic supply, it will remain highly dependent on imports of those minerals from third countries to achieve strategic autonomy in manufacturing capacities for both transition-related and military sectors in Europe. As global competition over access to raw materials intensifies, the EU is adapting its policy approaches in response. This briefing paper examines how geopolitical dynamics and evolving EU priorities are shaping EU's external raw materials policies. It assesses the use of different trade policy instruments and raw materials diplomacy, including new approaches such as the introduction of Strategic Projects, Raw Materials Club or Strategic Partnerships on raw materials. These partnerships reflect the EU's broader goal of strengthening manufacturing in Europe by integrating raw materials sectors from partner countries into these new value chains. However, we find that the incentives offered by the EU - such as more sustainable mining, increased investment, and mutual economic gains - remain non-binding and challenging to implement in practice. This is largely due to the lack of enforceable sustainability provisions and the absence of a coherent strategy to support investment and value-added processing in the raw materials sector. At the same time, traditional tools such as free trade agreements and regulatory cooperation remain central. These instruments must balance EU interests with the development needs of partner countries, particularly by allowing policy space for industrialization strategies and ensuring that environmental and social standards are effectively implemented. |
| Keywords: | EU raw materials policy, Critical Raw Materials, Critical Raw Materials Act (CRMA), Strategic Partnerships, Energy and Raw Materials Chapters in Free Trade Agreements |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:oefseb:319648 |
| By: | Schuß, Eric; Thöne, Michael |
| Abstract: | Im Zuge der durch die Bundesregierung formulierten Klimaschutzziele haben sich auch zahlreiche Kommunen in Deutschland eigene ambitionierte Ziele zur Reduzierung der Treibhausgase gesetzt. Als lokale Akteure können die Kommunen oftmals besser als übergeordnete Ebenen einschätzen, in welchen Maßnahmen vor Ort das größte Potenzial zur Einsparung von Treibhausgasen ruht. Aufgrund ihrer zentralen Rolle bei der Erreichung der Klimaschutzziele betrachtet der vorliegende Projektbericht explizit die Rolle der Kommunen und den Investitionspfad, der nötig ist, um ihren Kapitalstock klimaorientiert zu transformieren. Hierzu werden mehrere finanzwissenschaftliche Instrumente vorgestellt, die dabei helfen sollen, die finanziellen Ressourcen, die für den Klimaschutz und die Klimaanpassung zur Verfügung stehen, auszuweiten und effizient(er) einzusetzen. Im Zentrum steht dabei der Vorschlag eines wirkungsorientierten Förderbudgets, das den Kommunen langfristig als Finanzierungsgrundlage zur Verfügung stehen soll, um in die klimaorientierten Maßnahmen investieren zu können, die aus Sicht der Kommunen am dringlichsten sind. Dieser Vorschlag sieht vor, die Klimawirkung einer Maßnahme in den Mittelpunkt bei der Frage zu stellen, in welche Maßnahmen investiert werden soll. Gleichzeitig soll dadurch die Autonomie der Kommunen im Rahmen der Auswahl der Maßnahmen gestärkt werden. Als zweite wichtige Frage wird untersucht, welche klimaorientierten Maßnahmen in den Kommunen überhaupt ergriffen werden müssen, um die Klimaziele zu erreichen. Basierend auf der bisherigen Forschung wurde hierzu eine Übersicht mit den wichtigsten Maßnahmen in den Investitionsbereichen Verkehr, Energie und Gebäude sowie Grund und Boden erstellt. Dabei wurde auch geprüft, anhand welcher Indikatoren Fortschritte in den genannten Bereichen beschrieben und welche Indikatoren mit Daten auf kommunaler Ebene gefüttert werden können. Dadurch wird ersichtlich, inwiefern und in welchen Investitionsbereichen und bei welchen Maßnahmen die Datengrundlage noch ausbaufähig ist. Diese Fragen sind Grundlage für eine konsistente "Gesamtperspektive 2045" als Wissens-, Planungs- und Entscheidungsgrundlage für die Kommunen. Durch dieses Projekt wird insbesondere deutlich, dass für die Erreichung der Klimaziele nicht nur die Durchführung einzelner Maßnahmen wichtig ist, sondern vor allem das Verfolgen eines zusammenhängenden Gesamtkonzepts. Gleiches gilt für eine entsprechende Datengrundlage, mit der die klimaorientierte Investitionstätigkeit vor allem auf kommunaler Ebene hinsichtlich seiner Klimaschutzwirkung sowie seiner Wirkung auf Wirtschaftskraft, öffentliche Finanzen und den Arbeitsmarkt fundiert evaluiert werden könnte. |
| Abstract: | In the context of the climate protection targets of the German federal government, numerous municipalities have set their own ambitious targets for reducing greenhouse gases. As local actors, municipalities are often in a better position than superior levels to assess which local measures offer the greatest potential for reducing greenhouse gases. Due to their central role in achieving climate protection targets, this project considers explicitly the role of the German municipalities and the investment pathway that is required to transform their capital stock in a climate-oriented manner. For this purpose, several financial instruments are presented that should help to expand the financial resources available for climate change mitigation and adaptation and to use them more efficiently. At the centre of this project, we consider the proposal of an impact-oriented funding budget, which should provide a long-term financing basis to local authorities to enable them to invest in climate-oriented measures that are most urgent from the local authorities' perspective. This proposal is aimed at placing the climate impact of a measure at the centre of the question as to which measures should be invested in. At the same time, the funding budget is intended to strengthen the autonomy of local authorities in the selection of measures. The second important question is which climate-oriented measures need to be used in the municipalities in order to achieve the climate targets. Based on previous research, an overview of the most important measures in the investment areas of transport, energy and buildings as well as land and soil was elaborated. In this context, it was examined which indicators can be used to describe progress in these areas and whether data at the municipal level is available to empirically assess this progress. This should underline to what extent and in which investment areas and for which measures the data basis should be expanded. These questions form the basis for a consistent "Overall Perspective 2045" as a knowledge, planning and decision-making basis for the municipalities. This project highlights that it is not only the implementation of individual measures that is important for achieving the climate targets, in particular, a coherent overall concept is very essential. The same applies to a corresponding data basis that can describe the climate-oriented investment activities, especially at the municipal level, and that also helps to evaluate the effects of local climate protection measures on economic development, public finances and the labour market. |
| Keywords: | Climate change and climate adoption, municipalcapital stock, investments, impact-oriented funding budget, Klimaschutz und -anpassung, kommunaler Kapitalstock, Investitionen, wirkungsorientiertes Förderbudget |
| JEL: | H71 Q58 R11 R53 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:fifore:319879 |
| By: | Maxime Sauzet |
| Abstract: | Can environmentally-minded investors impact the cost of capital of green firms even when they invest through financial intermediaries? To answer this and related questions, I build an equilibrium intermediary asset pricing model with three investors, two risky assets, and a riskless bond. Specifically, two heterogeneous retail investors invest via a financial intermediary who decides on the portfolio allocation that she offers between a green and a brown equity. Both retail investors and the financial intermediary can tilt towards the green asset, beyond pure financial considerations. Perhaps surprisingly, the green retail investor can have significant impact on the pricing of green assets, even when she invests via an intermediary who does not tilt: a sizable green premium --that is, a lower cost of capital-- can emerge on the equity of the green firm. This good news comes with important qualifications, however: the green retail investor has to take large leveraged positions in the portfolio offered by the intermediary, her strategy must be inherently state-dependent, and economic conditions or the specification of preferences can overturn or limit the result. When the financial intermediary decides (or is made) to tilt instead, the impact on the green premium is substantially larger, although it is largest when preference are aligned with retail investors. I also study what happens when the green retail investor does not know the weights in the portfolio offered by the intermediary, the potential impact of greenwashing, and the effect of portfolio constraints. Taken together, these findings highlight the central role that financial intermediaries can play in channeling financing (or not) towards the green transition. |
| Keywords: | sustainable finance, intermediary asset pricing, index investing, portfolio choice |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11944 |
| By: | Namockel, Nils (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Within the transition to climate-neutral energy systems, hydrogen has the potential to support decarbonization of multiple sectors. Just like in electricity markets, volatility in hydrogen supply and process-specific demand may lead to volatile prices in a hydrogen market. This volatility may affect the interplay of hydrogen and electricity markets, which remains insufficiently explored. This study investigates fundamental price formation mechanisms for hydrogen and electricity, emphasizing their mutual dependencies, volatility, and the impact of short-term system conditions such as weather and demand variability. Additionally, it explores how these dynamics respond to variations in system conőgurations. Using the European energy system model DIMENSION, enhanced to incorporate detailed hydrogen supply and demand options including storage, cross-border trade, and updated import cost data, this study derives shadow prices as the basis for the subsequent statistical analysis. Results show that hydrogen and electricity prices are governed by short-term interactions. While electricity price formation can be well explained by renewable generation and demand, hydrogen prices emerge to be more structurally driven. Storage dynamics and cross-border trade moderate hydrogen price formation next to electrolysis. Strong price coupling between the hydrogen and electricity market likely occurs under low residual load conditions dominated by electrolysis, whereas decoupling arises during high residual load situations dominated by storage discharge. The electricity-to-hydrogen price ratio averages 0.56, lower than previous estimates, primarily due to the consideration of inflexible hydrogen imports and infrastructure constraints. Furthermore, the analysis indicates that short-term price signals alone may be insufficient for investment recovery, highlighting the need for complementary market mechanisms to develop a liquid hydrogen market. |
| Keywords: | Hydrogen; Electricity; Energy system modeling; Price formation; Climate neutrality |
| JEL: | C61 D47 Q21 Q41 Q48 |
| Date: | 2025–06–23 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2025_006 |
| By: | Coppens, Léo; Venmans, Frank |
| Abstract: | Two approaches are predominant in climate models: cost-benefit and cost-effectiveness analysis. On the one hand, cost-benefit analysis maximises welfare, finding a trade-off between climate damages and emission abatement costs. On the other hand, cost-effectiveness analysis minimises abatement costs, omits damages but adds a climate constraint, such as a radiative forcing constraint, a temperature constraint or a cumulative emissions constraint. These constraints can be applied from today onwards or only from 2100 onwards, allowing to overshoot the target before 2100. We analyse the impacts of these different constraints on optimal carbon prices, emissions and welfare. To do so, we fit a model with abatement costs, capital repurposing costs (stranded assets) and technological change on IPCC and NGFS scenarios. The welfare-maximizing scenario reaching 1.5°C in 2100 has almost no net negative emissions at the end of the century (-2GtCO2/y). A constraint on cumulative emissions has the best welfare properties, followed by a temperature constraint with overshoot. A forcing constraint with overshoot has insufficient early abatement, leading to a substantial welfare loss of $29 Trillion, spread out over the century. As to the paths reaching 2°C, all cost-effectiveness analysis abate too late, but the welfare impact of this dynamic inefficiency is milder. Again, a forcing constraint with overshoot scores worst. |
| Keywords: | climate change mitigation; targets formulation; integrated assessment models; optimal abatement path; cost-benefit; cost-effectiveness; welfare; negative emissions |
| JEL: | Q54 Q58 D61 |
| Date: | 2023–10–26 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:128529 |
| By: | Samuel Fiifi Eshun (Institute of Economic Studies, Charles University, Prague, Czech Republic); Evzen Kocenda (Institute of Economic Studies, Charles University, Prague, Czech Republic; Environment Centre, Charles University, Prague, Czech Republic; CESifo Munich; IOS Regensburg); Princewill Okwoche (Environment Centre, Charles University, Prague, Czech Republic; Namibia University of Science and Technology, Windhoek, Namibia; School of Economics, University of Cape Town); Milan Scasny (Institute of Economic Studies, Charles University, Prague, Czech Republic; Environment Centre, Charles University, Prague, Czech Republic) |
| Abstract: | We analyze the determinants of industrial energy demand in five new European Union member states (Czechia, Lithuania, Poland, Romania, and Slovenia) with a focus on the effects of energy prices, sectoral output, energy-saving investment, and technological progress. Using a panel dataset covering 16 industrial sectors over more than two decades (1995-2018), we employ advanced estimation approaches employed in related literature to address issues of heterogeneity, cross-sectional dependence, and persistence, often overlooked in studies relying solely on fixed effects. Our empirical results show that output levels and energy prices consistently drive energy consumption, with their effects amplified when cross-correlations are accounted for. From our preferred estimation procedure (Dynamic Common Correlated Effects - Mean Group), we obtain evidence of intuitively relevant values: the energy price elasticity is -0.42, and the output elasticity is 0.32. Energy demand exhibits moderate levels of persistence, showing that past consumption patterns drive current energy consumption. Energy-saving investments tend to increase energy use, as they often accompany industrial growth or modernization, whereas research and development show only a limited effect. These findings provide valuable insights to policymakers on energy solutions to influence energy demand and mitigate the pressures of industrial growth. |
| Keywords: | Energy demand; cross-sectoral dependency; income elasticity; price elasticity |
| JEL: | C23 O52 Q41 Q43 Q48 |
| Date: | 2025–06 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2025_11 |
| By: | Ignacio Félez de Torres (BANCO DE ESPAÑA); Clara I. González Martínez (BANCO DE ESPAÑA); Elena Triebskorn (DEUTSCHE BUNDESBANK) |
| Abstract: | With the effects of climate change becoming more evident every year, preventing and, ideally, reversing it is a pressing challenge. The Paris Agreement was a milestone in the fight against climate change, establishing a series of specific targets for 2050. The agreement sets out various goals, including to hold the increase in the global temperature to below 2°C above pre-industrial levels and to pursue efforts to limit the increase to 1.5°C. Assessing the world’s progress towards this goal requires forward-looking information on the transition to net-zero of countries, companies and the financial sector. In this paper, we begin by highlighting the importance of forward-looking indicators for assessing climate-related transition risks, both for corporations and countries. We then assess a range of currently available data sources, which provide a variety of indicators, particularly for corporations. However, we find that results vary depending on the data sources used, and only a limited number of firms, primarily large ones, are currently disclosing forward-looking indicators. These discrepancies can partly be attributed to differences in methodology, they are not always easy to understand, nor are they always comparable or communicated transparently. Therefore, their appropriate use depends on specific use cases. We also analyse the goals and pathways established by countries to achieve the Paris Agreement’s main target to limit the increase in global temperature through different data sources and frameworks. We find that there are different approaches based on the original goals set by each country with different coverage. We close the paper by outlining potential ways forward for central banks and ways by which statisticians, standard setters and other relevant stakeholders, including private entities, can help improve the quality, accessibility and comparability of forward-looking climate transition risk data. |
| Keywords: | climate change, goals, forward-looking, indicators |
| JEL: | C00 E58 Q54 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2515e |
| By: | Augustus Smith |
| Abstract: | Many countries plan to ban the sale of new combustion engine vehicles. I examine the impact of introducing such a ban in Great Britain in 2023, estimating demand, and calculating the reduction in the carbon externality using data on vehicle emissions and individual mileages. This reveals issues with the ban’s design, mainly due to hybrids’ popularity: anticipation will not incentivise firms to develop electric vehicles, low-income households would be harmed most, and CO2 emissions would not be substantially reduced. Using a revenue-neutral combination of sales taxes and subsidies delivers 50% of the ban’s climate benefit at 15% of the cost. |
| Date: | 2025–06–17 |
| URL: | https://d.repec.org/n?u=RePEc:oxf:wpaper:1083 |
| By: | Abdulrahman, Abdulrahman |
| Abstract: | This paper investigates the determinants of energy consumption in Egypt using annual data from 1984 to 2014. It examines the relationships between energy consumption and key macroeconomic variables: GDP per capita, gross capital formation, CO₂ emissions, and financial development. Using multiple regression analysis (OLS model), the study finds statistically significant coefficients: GDP per capita and investment negatively influence energy consumption, while CO2 emissions show a strong positive correlation. Financial development displays a mixed effect. The regression model demonstrates a high explanatory power (R² = 99.3%), indicating that these variables jointly explain energy consumption patterns in Egypt. These results offer policy-relevant insights for balancing economic development with environmental sustainability through efficient energy use. |
| Keywords: | Energy consumption, GDP per capita, Investment, CO2 emissions, Financial development, Egypt, OLS regression, Macroeconomic determinants, Sustainable development, Environmental economics |
| JEL: | Q4 Q43 Q47 Q48 Q5 Q51 Q54 Q56 Q58 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:125085 |