|
on Energy Economics |
| By: | Christoph Graf; Frank A. Wolak |
| Abstract: | Producers in locational pricing markets have the ability to exercise market power by impacting the extent to which transport capacity constraints bind. We extend the single-location residual demand curve concept to a residual demand hypersurface that quantifies the impact of a supplier’s output change at one location on prices at all locations. This concept improves our ability to explain the offers suppliers submit in the Italian locational pricing electricity market and demonstrates why the locations of a firm’s generation capacity determines the size and direction of locational price changes associated with the divestment of a fixed amount of generation capacity. |
| JEL: | L10 L13 Q48 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34272 |
| By: | Cavit Baran; Janet Currie; Bahadir Dursun; Erdal Tekin |
| Abstract: | This paper provides the first nationwide evidence on how electric vehicle (EV) adoption has improved both air quality and child health. We assemble a rich dataset from 2010–2021 that links county-level EV registrations to measures of air pollution, birth outcomes, and emergency department visits. The endogeneity of EV adoption is addressed using two complementary strategies: Two-way fixed effects and instrumental variables (IV). The IV exploits the staggered rollout of Alternative Fuel Corridors as a source of exogenous variation in charging infrastructure that affected EV adoption. The estimates show that greater EV penetration significantly reduces nitrogen dioxide (NO2), a key pollutant linked to vehicular emissions. These improvements in air quality yield significant health benefits, including reductions in very low birth weight and very premature births, as well as fewer asthma-related emergency department visits among children ages 0 to 5. This is true even when potentially offsetting increases in pollution from the electricity generation needed to power EVs are accounted for. The benefits are higher in the high-pollution counties with Alternative Fuel Corridors, where baseline exposures are greatest. The resulting reductions in very low birth weight births alone could generate annual benefits of $1.2 to $4.0 billion. These findings underscore the dual environmental and public health benefits of EV adoption. |
| JEL: | I14 I18 Q53 R38 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34278 |
| By: | Paula Patzelt |
| Abstract: | This paper identifies electricity supply shocks by exploiting the fact that variations in wind speed at turbine locations are exogenous with respect to macroeconomic outcomes and drive electricity prices in European wholesale markets inframarginally. Instrumenting electricity price changes with these wind supply shocks, I find that higher electricity prices raise inflation and reduce electricity use as expected, but generate surprising effects on economic activity. Unemployment rises, but industrial production also rises over time, and the effect on GDP is negligible. As these effects differ markedly from the impact of oil price shocks, they suggest that as economies shift from fossil fuels to renewable electricity, business cycle dynamics may persistently change. |
| Keywords: | business cycle, prices, energy supply, energy shocks, wind energy |
| JEL: | E31 E32 Q42 Q43 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12146 |
| By: | Dimitra Spyropoulou (Charles University Environment Centre, Charles University, Prague, Czech Republic); Milan Scasny (Charles University Environment Centre, Charles University, Prague, Czech Republic) |
| Abstract: | This study investigates consumer preferences for passenger battery electric vehicles and their joint adoption with a residential solar photovoltaic system in Greece, where electric vehicle uptake remains low. Using discrete choice experiments, we analyse the preferences of 891 potential car buyers for conventional, hybrid, plug-in hybrid, and battery electric vehicles, comparing scenarios where a battery electric vehicle is offered alone or as a bundle with subsidised home solar photovoltaics. Results indicate that offering a technology bundle shifts consumer preferences, with the most notable effect being a decrease in the likelihood of choosing conventional vehicles. The willingness to pay for the bundle also exceeds that for battery electric vehicles, suggesting that installing PV systems adds value to BEVs. Key factors influencing adoption include purchase price, operating costs, wallbox subsidies, and normal charging time, while driving range and fast-mode charging do not seem to significantly affect consumer preferences. However, the analysis reveals substantial unobserved preference heterogeneity across all attributes. Robustness checks support the validity of our results. These findings suggest that integrated green technology bundles can accelerate low-carbon transport adoption, supporting the EU decarbonisation targets through complementary renewable energy and electromobility solutions. |
| Keywords: | Battery Electric Vehicles; Photovoltaics; Technology bundle; Consumer choices; Discrete Choice Experiments; Willingness to Pay |
| JEL: | C15 D12 D90 Q42 Q55 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2025_16 |
| By: | Kemper, Annika (Center for Mathematical Economics, Bielefeld University); Schmeck, Maren Diane (Center for Mathematical Economics, Bielefeld University) |
| Abstract: | In this paper, we extend the market price of risk for delivery periods (MPDP) of electricity swap contracts by introducing a dimension for jump risk. As introduced by Kemper et al. (2022), the MPDP arises through the use of geometric averaging while pricing electricity swaps in a geometric framework. We adjust the work by Kemper et al. (2022) in two directions: First, we examine a Merton type model taking jumps into account. Second, we transfer the model to the physical measure by implementing mean-reverting behavior. We compare swap prices resulting from the classical arithmetic (approximated) average to the geometric weighted average. Under the physical measure, we discover a decomposition of the swap’s market price of risk into the classical one and the MPDP. |
| Keywords: | Electricity Swaps, Delivery Period, MPDP for Diffusion and Jump Risk, Mean-Reversion, Jumps, Samuelson Effect, Seasonality |
| Date: | 2025–08–14 |
| URL: | https://d.repec.org/n?u=RePEc:bie:wpaper:726 |
| By: | Jules Welgryn; Louis Soumoy |
| Abstract: | Decarbonising European industry requires significant electrification, yet long-term electricity contracting – particularly through Power Purchase Agreements (PPAs) – has failed to take off at scale. While policy makers imagined PPAs as a key tool to reduce risk and encourage investment in both clean electricity and electrified industrial processes, historical data shows that this expectation may be misplaced. In this paper, we bring new theoretical backing to the initially unexpected lack of contracting, by highlighting the intricate relationship between risk and ambiguity in these infrastructure-heavy settings – and show that the irreversible nature of such contract can hinder their signature. To achieve this, we build a bilateral contracting model mimicking contract negotiations between two agents faced with irreversible investment decisions. By addressing these issues, we bridge a literature gap by linking research on industrial decarbonisation, electricity market incompleteness, and risk management.Our bilateral contracting model contributes to several strands of research. It offers a new perspective on market incompleteness for infrastructure-heavy sectors. We then extend the theoretical insights with real-world calibrations, allowing us to determine whether the risk aversion or irreversibility effect dominate in electricity markets. Our findings suggest that high market volatility amplifies the irreversibility premium and the associated opportunity costs of entering contracts, thereby outweighing the effects of ambiguity aversion. Through these results, we also contribute to the literatures exploring electricity market incompleteness as well as industrial decarbonisation under uncertainty - at times where risk and ambiguity are considered as the main barriers preventing rapid decarbonisation investments in these sectors. |
| Keywords: | Electricity Markets, Industrial Decarbonisation, Investment, Real-Options, Incomplete Markets, Risk, Ambiguity |
| JEL: | D21 D25 L94 L97 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:drm:wpaper:2025-37 |
| By: | Vojtech Sikl (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague); Zuzana Irsova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague); Peter Kudela (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague); Anna Kudelova (Institute of Economic Studies, Faculty of Social Sciences, Charles University, Prague) |
| Abstract: | This meta-analysis synthesizes 4, 521 elasticity estimates drawn from 413 studies to examine the presence of publication and endogeneity bias in the literature. We coded over 100 study-level variables to assess how electricity consumers respond to price changes. Our results show that electricity demand is price inelastic, with an average short-run elasticity of -0.231 and average long-run elasticity of -0.532. However, after correcting for publication bias, the short-run elasticity declines in magnitude to -0.116, while the long-run elasticity adjusts to -0.303. Using Bayesian model averaging, we explore substantial heterogeneity in elasticity estimates. Factors such as declining tariff structures, demographic characteristics, fuel usage controls, daylight hours, and citation frequency significantly affect reported elasticities. In contrast, variables related to average and marginal electricity prices and time-of-use tariffs contribute minimally to the observed variation. |
| Keywords: | meta-analysis, elasticity, price elasticity, electricity, heterogeneity, publication bias, consumer sensitivity |
| JEL: | D01 Q40 Q49 C11 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:fau:wpaper:wp2025_17 |
| By: | Gechert, Sebastian; Mey, Bianka; Prante, Franz; Schäfer, Teresa |
| Abstract: | We create a large meta-dataset of price elasticities of energy demand for heating and cooling in buildings, comprising close to 5000 price elasticity estimates including study and observation characteristics from more than 400 primary studies. We find robust and strong signs of p-hacking and publication bias with insignificant or positive elasticities being underrepresented. Correcting for this bias, the price elasticities range from -0.05 to -0.2 for the short run and from -0.1 to -0.3 for the long run. This holds for all relevant fossil fuels and electricity, poor and rich countries, residential and business usage, and aggregate and survey data. |
| Keywords: | Meta-analysis, Price elasticity, Energy demand, Publication Bias |
| JEL: | C83 Q41 Q48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:265 |
| By: | Bonacina, Monica |
| Abstract: | Tokong, Romolo Consigna |
| Keywords: | Climate Change, Sustainability |
| Date: | 2025–09–19 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:369377 |
| By: | Clausen, Jens |
| Abstract: | Es gibt verschiedene Antworten auf die Frage nach dem Nutzen der Transformation des Energiesystems. Die klassische Antwort besteht in Argumenten für die Klimafreundlichkeit der erneuerbaren Energien und die Chance, durch ihre Skalierung die fossilen Energien aus dem Markt zu drängen, die Treibhausgasemissionen deutlich zu reduzieren und so einen wirksamen Beitrag zum Klimaschutz zu leisten. Leider beobachten wir gegenwärtig eine politische Kultur, die die Frage des schlichten Überlebens der Menschheit ignoriert und entweder die Klimakrise an sich in Frage stellt oder aber die Dringlichkeit des Handelns nicht anerkennt und so keinen Grund sieht, bereits zeitnah Fortschritte zu erreichen. Beide politischen Positionen sehen sich in eklatantem Gegensatz zur Klimaforschung, lassen sich aber aus Gründen der Popularität ihrer politischen Positionen nicht von ihren Ansichten und Absichten abbringen. Der vorliegende Beitrag versucht daher am Beispiel der Elektromobilität, Grundlagen für ein zweites Argument zu entwickeln, welches die Frage des Klimawandels weitgehend außen vorlässt. Das neue Argument lautet: „Lasst uns ein Energiesystem entwickeln, welches für Haushalte und Unternehmen preiswertere Energie bereitstellt als es die fossilen Energien einschließlich der Kernenergie möglichmachen.“ Dieses kurze Paper nimmt die Kosten der Elektromobilität in den Fokus. Diese sind auf dem besten Wege so günstig zu werden, dass die Verbreitung der Elektromobilität als „soziale Innovation“ eingestuft werden kann, die das Leben vieler Menschen preiswerter macht. Der Weg dahin führt über ein breiteres Angebot günstiger Gebrauchtwagen, was zweierlei bedingt: ein wachsendes preiswertes Angebot elektrischer Klein- und Kleinstwagen sowie ein Umschwenken der Dienstwagenbeschaffung der Unternehmen auf Elektro. Durch den Betrieb von Elektroautos sind schon in naher Zukunft erhebliche wirtschaftliche Vorteile für diejenigen Haushalte und Unternehmen zu erwarten, die sich dieser Art von Fahrzeug bedienen. Dies hängt zunächst mit der hohen Effizienz des Elektroantriebs zusammen. Ein Elektrofahrzeug inkl. sämtlicher Verluste bringt etwa 69 % des z.B. am Windkraftwerk erzeugten Stroms „auf die Straße“. Beim fossilen Verbrenner liegt dieser Wert, bezogen auf den Treibstoff, bei unter 30 % und beim E-Fuel Verbrenner bei ca. 13 % der regenerativen Stromerzeugung, die ja die Basis für die Elektrolyse von Wasserstoff und die Synthese künstlicher Treibstoffe bildet. Bei einem Vergleich von Energiekosten verschiedener Antriebsarten schneidet schon bei gegenwärtigen Preisen das Elektroauto mit einem erheblichen Kostenvorteil ab. Weitere Kostenvorteile ergeben sich durch eine in den ADAC-Pannenstatistiken jedes Jahr deutlicher werdende, signifikant höhere Zuverlässigkeit sowie durch günstigere Wartungskosten. Zur weiteren Förderung der Elektromobilität ist aber noch vieles zu tun, damit Elektroautos im Einkauf preiswerter werden. Die gegenwärtig angekündigten preiswerten Einstiegmodelle wie der VW ID every1 sind dazu genauso ein wichtiger Beitrag wie die weiter fallenden Preise für Batterien. Auch die Reduktion der Subventionen für fossile Brennstoffe wie z.B. das Dieselprivileg wäre hilfreich und die Festsetzung von CO2-Emissionsnormen für neue PKW durch die EU sollte keineswegs in Frage gestellt oder gar zurückgenommen werden, da sie auch einen Beitrag zu einem relativen Preisvorteil von Elektroautos leistet. Auch die Sonderzölle auf chinesische Elektroautos sind an dieser Stelle wenig produktiv. |
| Keywords: | Elektromobilität, Elektroautos, Verbrennungsmotor, Kostenvergleich, Betriebskosten, Ladeinfrastruktur, Reichweitenangst, Batterie (Lebensdauer / Recycling), Klimabilanz, CO₂-Emissionen, Wartungskosten, Flottenbetrieb, Gebrauchtwagenmarkt, Steuerliche Vorteile, Energiewende |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esrepo:325854 |
| By: | Brockmann, Fabian (Dept. of Business and Management Science, Norwegian School of Economics); Kohn, Rieke S. (Dept. of Accounting, Auditing and Law, Norwegian School of Economics); Marinelli, Mattia (Dept. of Wind and Energy Systems, DTU Technical University of Denmark) |
| Abstract: | The rapid adoption of electric vehicles (EVs) presents both opportunities and challenges for energy systems. While smart charging algorithms have been widely studied to optimize EV charging schedules, the role of EV users' plug-in behavior that precedes any smart charging remains largely unexplored. This study addresses this critical gap by approximating the human plug-in decision-making process through an agent-based simulation model, capturing how EV users adjust their plug-in behavior in response to status of charge and dynamic electricity prices. Furthermore, we evaluate the impact of plug-in behavior on EV users' charging cost, battery lifetime, and EV fleet peak power demand. Our numerical analysis reveals that a price-sensitive plug-in behavior can substantially decrease charging cost and generally extend battery lifetime, though some users may experience shorter battery lifespans due to deeper discharge cycles. Moreover, this behavior also leads to synchronized charging patterns, increasing peak power demand and potentially straining grid infrastructure. These findings reveal the trade-off between user benefits and grid operation drawbacks, underscoring the need for holistic approaches in the assessment of EV user behavior. Furthermore, our study highlights the importance of user engagement in smart charging technologies. |
| Keywords: | EV; Behavior; Grid; Battery; Cost; Smart Charging |
| JEL: | Q00 Q40 |
| Date: | 2025–09–22 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:nhhfms:2025_024 |
| By: | Julian Geis; Fabian Neumann; Michael Lindner; Philipp H\"artel; Tom Brown |
| Abstract: | As variable renewable energy increases and more demand is electrified, we expect price formation in wholesale electricity markets to transition from being dominated by fossil fuel generators to being dominated by the opportunity costs of storage and demand management. In order to analyse this transition, we introduce a new method to investigate price formation based on a mapping from the dual variables of the energy system optimisation problem to the bids and asks of electricity suppliers and consumers. This allows us to build the full supply and demand curves in each hour. We use this method to analyse price formation in a sector-coupled, climate-neutral energy system model for Germany, PyPSA-DE, with high temporal resolution and myopic foresight in 5-year steps from 2020 until full decarbonisation in 2045. We find a clear transition from distinct price levels, corresponding to fossil fuels, to a smoother price curve set by variable renewable energy sources, batteries and electrolysis. Despite higher price volatility, the fully decarbonised system clears with non-zero prices in 75% of all hours. Our results suggest that flexibility and cross-sectoral demand bidding play a vital role in stabilising electricity prices in a climate-neutral future. These findings are highly relevant for guiding investment decisions and informing policy, particularly in support of dynamic pricing, the expansion of energy storage across multiple timescales, and the coordinated development of renewable and flexibility technologies. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.10092 |
| By: | Zanfrillo, Alicia Inés |
| Abstract: | La industria offshore en Argentina enfrenta un escenario de capacidades desiguales a lo largo del litoral atlántico, con fortalezas concentradas en Mar del Plata y Bahía Blanca, pero con marcadas brechas en localidades portuarias menores en términos de infraestructura, formación técnica y servicios estratégicos. A partir de un análisis prospectivo, se propone una hoja de ruta basada en tres ejes clave -servicios y logística, formación de capacidades, y gobernanza- que permite orientar decisiones públicas y privadas hacia un modelo sostenible y territorialmente equilibrado. La articulación interinstitucional, la inversión estratégica y la participación ciudadana emergen como condiciones indispensables para transformar el potencial offshore en una oportunidad concreta de desarrollo productivo, tecnológico y social en clave de transparencia, comunicación y respeto por la comunidad y su entorno. El estudio aporta una perspectiva más amplia de los desafíos que implica la transformación del horizonte energético argentino, subrayando que el desarrollo de la industria offshore no puede abordarse de forma aislada. Se conciben así al fortalecimiento y a la consolidación de capacidades estratégicas en tierra firme -infraestructurales, institucionales y humanas- como condiciones necesarias para el desarrollo integral, eficiente y sostenible de la exploración y producción de hidrocarburos. |
| Keywords: | Exploración Petrolera; Industria del Petroleo; Desarrollo Industrial; Mar del Plata; Bahía Blanca; |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4390 |
| By: | Aneli Bongers (Department of Economics, University of Malaga); Jose L. Torres (Department of Economics, University of Malaga) |
| Abstract: | Computing the so-called Business-as-Usual (BaU) scenario in Integrated Assessment Models (IAMs) that include environmental externalities is a non-trivial task. Traditionally, general equilibrium growth models with such externalities are solved in a centralized framework, where a social planner maximizes welfare by fully internalizing the environmental damage. This is the approach taken in the well-known DICE model by Nordhaus (1992). However, in DICE, the BaU scenario is defined as the planner’s solution with zero abatement, even though the externality is already internalized through investment decisions to maximize social welfare. This creates a mismatch when comparing the BaU scenario to the true first-best allocation. This paper solves the DISE-2024 (Dynamic Integrated Space Economy) model in a decentralized economy, using a fixed point method to compute orbital debris trajectories under a laissez-faire setting, and compares them with the first-best optimal trajectories from a centralized economy. |
| Keywords: | Orbital debris; Satellites; Integrated assessment models; Business-as-Usual; Competitive decentralized equilibrium |
| JEL: | D62 E21 Q53 Q58 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bhw:wpaper:08-2025 |
| By: | Tristan Jourde; Quentin Moreaux |
| Abstract: | This paper introduces a market-based framework to study the effects of tail climate risks in the financial sector. In addition to identifying the financial institutions most vulnerable to physical and transition climate risks, our framework explores the potential for these risks to induce contagion effects in the financial sector. Based on the securities of large European financial institutions (including the UK) spanning from 2005 to 2022, we show that, unlike physical risk, transition risk significantly and increasingly influences systemic risk in the financial sector. We also examine the potential levers available to financial institutions and regulators to address climate-related financial risk. |
| Keywords: | Climate Risks, Contagion, ESG, Financial Stability, Systemic Risk |
| JEL: | G10 G20 G32 Q54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:993 |
| By: | Gazze, Ludovica (University of Warwick and CAGE); Gupta, Tanu (University of Southampton Delhi); Huang, Allen (Weiyi) (St Hilda's College, University of Oxford); Londoño, Valentina (Universidad del Rosario); Saavedra, Santiago (Universidad del Rosario); Toma, Mattie (University of Warwick) |
| Abstract: | There is limited evidence on the non-health impacts of air pollution, including productivity in the workplace and behavior. We examine the effect of air pollution on participation, collaboration, and feedback provision in a workplace setting. Our experiment randomly assigns air purifiers to rooms at three large academic conferences to investigate the causal impact of air pollution on participants’ engagement behavior. We construct a participant engagement index based on 12 presentation-level behavioral outcomes directly measured by conference observers through an online form and weigh each behavioral outcome using weights elicited from an expert survey. Conference rooms treated with air purifiers exhibit 48% less PM2.5 concentration compared to control rooms. However, we do not find a statistically significant change in engagement. Communication in the workplace might not be a large driver of the empirical relationship between air quality and productivity, albeit more research is needed across workplaces and measures of communication. |
| Keywords: | Indoor air quality; Engagement; Workplace; Field Experiment JEL Classification: Q53, J24 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:cge:wacage:773 |
| By: | Matilda Baret (University of Orléans); Yannick Lucotte (University of Orléans); Sessi Tokpavi (University of Orléans) |
| Abstract: | The 21st century is facing climate change challenge, which has rapidly intensified, impacting global systems in various ways. The need to mitigate climate change necessitates deep, fast and sustainable reductions in greenhouse gas (GHG) emissions. Efforts should go through several channels including Scope 3 emissions, which encompass indirect emissions from a company’s entire value chain. However, accurately estimating Scope 3 emissions at the company level remains challenging due to data scarcity and reliability issues. This paper presents a new empirical methodology designed to estimate Scope 3 emissions at the company level, taking into account the dynamics of value chains and company-specific factors. Using input-output tables and sectoral emissions data, we reconstruct company value chains and calculate emissions from upstream and downstream sectors. We address the challenge of missing data by using parametric and machine learning techniques, to predict both reported and unreported emissions. Our model, applied to French companies’ data, shows that company-specific characteristics play a key role in Scope 3 emissions, and sectors’ emissions in the value chain as a whole significantly influence Scope 3 emissions. The results suggest that machine learning models, particularly Random Forest, outperform traditional models in predicting Scope 3 emissions. The study also highlights the importance of expanding data reporting and designing comprehensive climate policies to better manage emissions across all sectors. |
| Keywords: | Climate change, climate policy, Scope 3 Emissions, value chain, machine learning, estimation, prediction |
| JEL: | C Q |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2025.12 |
| By: | Bernad, Mariana (University of London); De Haas, Ralph (EBRD, London); Rud, Juan Pablo (Royal Holloway, University of London) |
| Abstract: | We document how banks' voluntary climate commitments predict both their green lending practices and their borrowers' environmental investments. Using structured surveys of 644 bank CEOs and heads of credit across 33 low- and middle-income countries, we develop indices of banks' green management and lending practices. These unique organizational data reveal that banks signing international climate initiatives ('talk') indeed exhibit stronger green practices ('walk') than non-signatories. We then merge our bank data with detailed surveys of 4, 719 firms and show that firms borrowing from climate-committed banks are more likely to undertake green investments. Exploiting geocoded bank branch and firm locations, we further find evidence of spatial matching: environmentally-oriented firms preferentially borrow from climate-committed banks in their vicinity. These patterns are consistent with voluntary climate commitments reflecting genuine environmental orientation rather than greenwashing. |
| Keywords: | green management, emerging markets, banks, limate change, greenwashing |
| JEL: | D22 G21 G32 O12 Q54 Q56 R51 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:iza:izadps:dp18131 |
| By: | Véronique Genre; Alice Magniez; David Nefzi; François Robin |
| Abstract: | As part of the G20 initiative to develop new climate indicators, we propose an original measure of the carbon footprint of French companies' foreign direct investment based on the CO2 emissions of around 2, 500 French multinational groups. This footprint is greater in Asia and Africa, even though the amounts invested are relatively lower. <p> S’inscrivant dans l’initiative du G20 visant à développer de nouveaux indicateurs climat, nous proposons une mesure originale de l'empreinte carbone des investissements directs étrangers des entreprises françaises basée sur les émissions de CO2 d'environ 2 500 groupes multinationaux français. Cette empreinte est plus forte en Asie et en Afrique alors que les montants investis y sont relativement plus faibles. |
| Date: | 2025–07–23 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:409 |
| By: | Aamir Javed (UNICH - Universita' degli Studi "G. d'Annunzio" Chieti-Pescara); Mahjabeen Usman (2IU - International Islamic University [Islamabad, Pakistan]); Nabila Abid (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School); Agnese Rapposelli (UNICH - Universita' degli Studi "G. d'Annunzio" Chieti-Pescara) |
| Abstract: | Fossil fuel energy consumption not only leads to climate change but also contributes to energy poverty and the unequal distribution of its supply, urging investment in alternative and clean energy sources. Furthermore, unprecedented geopolitical risk and climate policy uncertainty pose serious concerns for a steady energy supply, and the literature provides insufficient evidence for these important indicators, particularly considering the amount of renewable energy investment in the USA. The current paper formulates an interesting framework to scrutinize the impact of geopolitical risk, climate policy uncertainty, environmental policy stringency, and financial institutions' efficiency on renewable energy investment in the USA. For empirical analysis, this study utilizes modern econometric approaches such as the recently developed novel dynamic simulated ARDL and the frequency domain causality approach, harnessing the annual time series data spanning from 1990 to 2022. The obtained results explain that geopolitical risk negatively affects renewable energy investment, suggesting that higher geopolitical risk hinders renewable energy investment. Contrary to this, climate policy uncertainty, environmental policy, financial integration, and financial institutions' efficiency have a significant positive impact on renewable energy investment. In addition, the frequency domain causality test provides evidence of long, medium, and short-term causal connections between variables. The robustness analysis corroborates the main findings. Based on these results, the USA should promote renewable energy initiatives to mitigate geopolitical concerns among investors. Furthermore, the financial framework should support sustainability by directing energy investments in the capital market, encouraging long-term financial funding for energy projects, and incentivizing renewable energy investments. |
| Keywords: | Dynamic ARDL simulation, Financial integration and efficiency, Environmental policy stringency, Climate policy uncertainty, Geopolitical risk, Renewable energy investment |
| Date: | 2025–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05235793 |
| By: | Cigna, Luca; Di Carlo, Donato; Durazzi, Niccolò |
| Abstract: | The green transition is fundamentally transforming contemporary economies and societies. This article investigates how European models of capitalism perform and specialize across the green value chain—conceptualized as innovation, manufacturing, services, and deployment—and how national skill formation systems underpin these specializations. Integrating insights from comparative capitalism literatures with descriptive statistics and principal component analysis (PCA), we develop and test expectations about growth regime‐specific patterns of green specialization and skill profiles. Our findings reveal marked cross‐national variation between green leaders and laggards: Nordic economies characterized by dynamic services and continental manufacturing‐based models are frontrunners in the green transition, while Eastern Europe's FDI‐led regimes and Southern Europe's demand‐led regimes emerge as laggards. Furthermore, PCA results uncover two distinct decarbonization pathways among European green leaders: one group of countries (Austria, Finland, Germany) specializes in green manufacturing, supported by high shares of STEM graduates; another (Denmark, Switzerland, and to a lesser extent Norway and Sweden) focuses on green innovation and dynamic services, sustained by a strong supply of STEM doctorates. This article contributes to political economy debates on the green transition by identifying distinct green specializations and decarbonization pathways across European models of capitalism and by underscoring the growing centrality of high‐level STEM skills in the green transition. |
| Keywords: | growth regimes; skill formation; global value chains; green transition; comparative political economy |
| JEL: | N0 R14 J01 |
| Date: | 2025–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129591 |
| By: | Abderraouf Ben Ahmed Mtiraoui (MOFID-Université de Sousse); Samira Chaabene (USO - جامعة سوسة = Université de Sousse = University of Sousse); Radhia Maskhi (USO - جامعة سوسة = Université de Sousse = University of Sousse) |
| Abstract: | This study explores the impact of the energy transition on sustainable development in developing countries, focusing on pollution reduction, climate adaptation, and resilience. From 2000 to 2022, international funding, incentive policies, and capacity-building initiatives enabled the deployment of solar panels and small wind turbines, fostering job creation, reducing emissions, and improving energy access. A simultaneous equations model is used to examine the interactions between economic, institutional, social, and environmental factors. The research highlights the role of renewable energy, innovative policies, and localized initiatives in driving sustainable progress. Findings demonstrate how clean energy reduces greenhouse gases, strengthens institutional frameworks, and improves living conditions for vulnerable groups. Special attention is given to rural and isolated areas, where renewable energy fosters socio-economic and environmental benefits. |
| Keywords: | Energy Transition, Sustainable Development, Developing Countries, Simultaneous Equation Model |
| Date: | 2024–07–26 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05212133 |
| By: | Hardaker, Adam; Asanov, Igor; Bartoš, František; Bruns, Stephan B. |
| Abstract: | Behavioral interventions on citizens are often promoted as a low-cost route to induce environmen-tally friendly behavior, yet published estimates of their effectiveness are highly variable and prone to selective reporting. We reanalyzed the evidence of behavioral interventions on citizens. We con-ducted Robust Bayesian Meta-Analysis (RoBMA), averaging across a full set of publication-bias adjusted models, to the 144 effect estimates (91 studies) compiled by Nisa et al. (2019). The bias-adjusted model-averaged posterior mean standardized effect of behavioral interventions on citizens is shrunk to 0.00 (95 % credible interval 0.00; 0.00), with a Bayes factor of 66 favoring the null. Accordingly, the previously reported noteworthy mean benefit of -0.093 (95% confidence interval -0.123; -0.063) of behavioral interventions, including promising light-touch interventions (nudges or social comparison), on households and individuals is an artefact of publication bias. There is, how-ever, evidence for small between-study heterogeneity, indicating that some specific interventions might have an effect. Exploratory subgroup tests offered only weak, inconsistent hints of context-specific gains. These results imply that, on average, behavioral interventions on households and individuals are unlikely to deliver material climate benefits. |
| Keywords: | Behavioral interventions, Climate change mitigation, Publication bias, Robust Bayes-ian Meta-Analysis, Pro-environmental behavior |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:263 |
| By: | Fanny Henriet; Yannick Kalantzis; Matthieu Lemoine; Noëmie Lisack; Harri Turunen |
| Abstract: | The climate transition has long been considered as a long-term challenge, and the tools used to analyse it have been long-term models. At short- to medium-term horizons, forecasting models generally focus on demand effects of such a shock through the purchasing power of households. In this paper, we bridge the gap between these two approaches in order to study the effect of the Fit-for-55 package of the European Commission on the French economy by 2030, using an energy-augmented two-sector real model, FR-GREEN, as a source of shocks for the nominal forecasting model FR-BDF. We show that the benefit of reducing emissions implies some macro costs during the transition. In the short run, inflation increases substantially because of the direct effect of taxes levied on households. In the medium run, most of the total impact on output and inflation is due to large real supply effects from FR-GREEN. These supply effects come from a loss of apparent productivity implied by the transition from brown to green technologies, in the absence of any favourable assumption regarding technological progress potentially driven by the transition. |
| Keywords: | Energy, Climate, Transition, Carbon Tax, General Equilibrium |
| JEL: | Q43 Q54 Q58 E37 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:1000 |
| By: | David Cuberes (CLARK UNIVERSITY); Aitor Lacuesta (BANCO DE ESPAÑA); María de los Llanos Matea (BANCO DE ESPAÑA); Daniel Oto-Peralías (UNIVERSIDAD PABLO DE OLAVIDE) |
| Abstract: | En España, la administración que aprueba la instalación de plantas fotovoltaicas difiere en función de si su potencia excede o no los 50 megavatios (MW) de capacidad. Este documento analiza el efecto de dicha regulación sobre la capacidad de las plantas instaladas. A diferencia de lo que ocurre en otros países, se observa una discontinuidad en la relación entre el número de plantas fotovoltaicas y su capacidad en el rango comprendido entre 40 y 50 MW. Un análisis basado en una muestra de proyectos aprobados en 2024 sugiere que esta discontinuidad podría deberse a un comportamiento estratégico del promotor, motivado por unos mayores tiempos de tramitación de la autorización administrativa —a cargo de la Administración General del Estado (AGE)— en los proyectos de más de 50 MW y por diferencias en los criterios de aprobación entre la AGE y algunas comunidades autónomas, si bien el mencionado análisis no constituye evidencia concluyente al respecto. Esta discontinuidad, visible aun considerando la capacidad conjunta de aquellas plantas próximas y pertenecientes al mismo propietario, podría sugerir la existencia de ineficiencias económicas relacionadas con estas diferencias entre administraciones. |
| Keywords: | energía, plantas fotovoltaicas, parques fotovoltaicos, regulación, fragmentación de proyectos |
| JEL: | D22 L51 L94 Q42 Q48 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bde:opaper:2519 |
| By: | Jérémi Montornès; Alexandre Bourgeois |
| Abstract: | Made in France, defined as domestic value added content of the final domestic demand, fell by 11 points between 1965 and 2019, from 89% to 78%. This downward trend is common to European countries and reflects the growing globalization process of recent decades. The location of a production plant in France has consequences throughout the value chain. These spillovers increase the positive effects of setting up a new plant on economic activity and employment in France, compared to the creation of a similar plant abroad. The spillover effect, defined as the total value added of the new plant and its suppliers compared to the value added of the new plant alone, and simulated here under the strong assumption that the supply chain of the new plant is similar to those of existing firms, would be around 2.0 in manufacturing industry and 1.6 in market services. If greenhouse gas emissions from production increase in France, they decrease worldwide, since production in France is less carbon-intensive than in the countries that supply imports. |
| Keywords: | Multi-Regional Input-Output Model, Reshoring, Carbon Footprint |
| JEL: | C67 F62 Q53 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:992 |
| By: | Marie-Sophie Lappe; Francesco Nicoli |
| Abstract: | Green public procurement supports EU climate goals but may conflict with other objectives, creating trade-offs that challenge its effectiveness |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:bre:wpaper:node_11304 |
| By: | Michel Grabisch (Centre d'Economie de la Sorbonne, Université Paris 1 Panthéon-Sorbonne, Paris School of Economics); Elena Parilina (Saint Peterburg State University); Agnieszka Rusinowska (Centre d'Economie de la Sorbonne, CNRS, Université Paris 1 Panthéon-Sorbonne, Paris School of Economics); Georges Zaccour (GERAD, HEC Montréal) |
| Abstract: | Dealing with climate change requires that all countries engage in costly efforts to reduce their emissions. Reaching this objective has so far been elusive because it is in the best interest of each country to let the others do the effort and benefit itself from a better environment. The presence of negative externalities and strategic behavior have made game theory a natural paradigm to design an international environmental agreement (IEA) that codifies what countries should do. Considering that countries are sovereign and no supranational entity can impose an agreement, a stream of literature adopted a noncooperative mode of play to the formation of an environmental coalition. On the other hand, as joint optimization of all countries’ payoff leads to the best outcome, cooperative games approach has also been proposed to share the cost of climate change. Both approaches have their pros and cons. In this paper, we propose a model of coalition formation that combines both cooperative and noncooperative modes of play. Starting from any given coalition, we implement a Markov process that shows sequentially which countries join or leave the coalition until reaching an absorbing state. All possible sequential scenarios are considered and an allocation to the player is made taking into account individual rationality. An illustration with vulnerable and invulnerable countries to pollution is given |
| Keywords: | Coalition Formation; International Environmental Agreement; Markov Process; Shapley Value |
| JEL: | C71 C72 F53 Q53 |
| Date: | 2025–07 |
| URL: | https://d.repec.org/n?u=RePEc:mse:cesdoc:25020 |
| By: | Marco Pinchetti |
| Abstract: | Geopolitical shocks are not all alike -- different classes of geopolitical shocks can have different macroeconomic implications, particularly on inflation. This paper exploits the comovement between the Geopolitical Risk Index (GPR) developed by Caldara and Iacoviello (2022) and oil prices across major geopolitical events to disentangle two types of geopolitical shocks within a structural VAR model for the US economy. The VAR estimates suggest that geopolitical shocks associated with disruptions in energy markets are on average inflationary and contractionary. In contrast, geopolitical shocks associated with macroeconomic developments that are unrelated to energy markets are on average deflationary and contractionary. To validate this interpretation, the paper exploits the heterogeneity across sectoral output and prices of the US economy to show that a sector’s response to a geopolitical shock depends on its energy intensity. Sectors characterized by higher energy intensity are subject to larger output losses and price increases in response to geopolitical energy shocks. |
| Keywords: | Geopolitical Risk, Business Cycles, Energy, High-Frequency Sign Restrictions, High-Frequency Identification. |
| JEL: | E31 E32 Q41 Q43 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:1005 |
| By: | Minju Lee (Korea Institute for Industrial Economics and Trade); Sang Hyun Lee (Korea Institute for Industrial Economics and Trade) |
| Abstract: | Recently, Small Modular Reactors (SMRs) have been attracting attention as a promising way to power the rapidly proliferating number of artificial intelligence (AI) server farms and other data centers.<p> This paper examines the current state of the global SMR industry and identifies the implications for Korean policy carried by the analysis. |
| Keywords: | artificial intelligence; AI; large language models; LLMs; generative AI; small modular reactors; SMRs; SMR; electricity generation; electricity consumption; power generation; power consumption; data c |
| JEL: | Q41 Q43 Q48 Q55 L94 L86 |
| Date: | 2025–08–31 |
| URL: | https://d.repec.org/n?u=RePEc:ris:kieter:021550 |
| By: | Krüger, Jens J.; Tarach, Moritz |
| Abstract: | The reduction of greenhouse gas emissions is the key action to limit global warming. An important source of greenhouse gas emissions and pollution is the inefficiency of production processes. We report results from a stochastic nonparametric efficiency analysis using directional distance functions to take account of undesirable outputs like greenhouse gases. With this approach, we are able to provide estimates of the potential emission reductions for 7 main sectors in 16 European countries. A specially adapted bootstrapping approach allows to implement a bias correction of the estimates and to compute confidence intervals. The results show that static efficiency improvements are a quantitatively important element of the emission reductions which are required to achieve the reduction targets of the European Union. |
| Date: | 2025–08–19 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:156572 |
| By: | Zanfrillo, Alicia Inés |
| Abstract: | La exploración y explotación de recursos offshore representa un pilar estratégico en la transición energética y el desarrollo económico global, configurándose como una oportunidad para naciones con potencial hidrocarburífero. En este contexto, Brasil, Guyana y Namibia destacan como ejemplos de las diferentes etapas y enfoques en el desarrollo de sus industrias offshore. Brasil, con su consolidada infraestructura, marcos regulatorios avanzados y el liderazgo de empresas como Petrobras, ha logrado integrar a las pequeñas y medianas empresas en la cadena de valor, convirtiéndose en un referente regional. Por su parte, Guyana, aunque enfrenta desafíos asociados a su limitada capacidad industrial y tensiones políticas internas, está experimentando un auge económico acelerado gracias a recientes descubrimientos que lo posicionan como un actor clave en el Atlántico occidental. Namibia, aún en las primeras etapas de desarrollo, presenta un gran potencial impulsado por políticas emergentes que buscan maximizar el contenido local y mitigar los impactos ambientales. Estos casos subrayan la importancia de articular estrategias sostenibles que permitan a las naciones aprovechar su riqueza hidrocarburífera sin comprometer el desarrollo económico, social y ambiental a largo plazo. En este marco, Argentina se encuentra frente a una posibilidad estratégica para aprovechar su potencial hidrocarburífero en áreas del Mar Argentino, donde las exploraciones recientes podrían consolidar su rol como un actor energético relevante. Este resumen ejecutivo sintetiza las principales dinámicas, desafíos y oportunidades identificados en este estudio sobre el desarrollo de la industria offshore. En primer lugar, se analizan las capacidades logísticas, de servicios y formativa en las ciudades del litoral atlántico (Mar del Plata, Necochea-Quequén, Bahía Blanca, Punta Alta, San Antonio Oeste y San Antonio Este, Sierra Grande-Punta Colorada, Puerto Madryn, Rawson y Comodoro Rivadavia, Caleta Olivia, Puerto Deseado, Puerto Santa Cruz - Punta Quilla, Río Gallegos - Punta Loyola, Ushuaia y Río Grande). De acuerdo con la descripción comparada de estas localidades, se observan diferencias en sus características y en el grado de complementariedad con el desarrollo de la industria offshore. Bahía Blanca se posiciona como un nodo logístico estratégico, debido a su capacidad portuaria de 19 muelles y un calado máximo de 14 metros, ideal para operaciones de gran escala. En contraste, Mar del Plata y Necochea-Quequén enfrentan limitaciones en infraestructura portuaria y restricciones de expansión urbana, aunque Mar del Plata se destaca por su capacidad hotelera con 57.000 plazas, siendo óptima para actividades que requieran una alta concentración de personal en tierra, mientras que Necochea, con 40.000 plazas, refuerza su atractivo turístico. En términos de servicios esenciales, Punta Alta lidera con la mejor cobertura sanitaria (78, 4%), mientras que las localidades del Departamento de San Antonio en Río Negro muestran rezagos significativos con un 66, 72%. Estas características resaltan la necesidad de articular las fortalezas de cada región para superar desafíos y maximizar el potencial del sector offshore en el país. En segundo lugar, teniendo en cuenta el posicionamiento relativo de las ciudades de Mar del Plata y Bahía Blanca, se profundizó en el impacto de la actividad offshore en los sectores de pesca y turismo en ambas ciudades. Finalmente, se propusieron escenarios para orientar las acciones y decisiones, integrando los resultados de las capacidades logísticas y de formación y el impacto en las actividades productivas de referencia en las dos ciudades mencionadas. |
| Keywords: | Exploración Petrolera; Industria del Petroleo; Desarrollo Industrial; Mar del Plata; Bahía Blanca; |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:nmp:nuland:4389 |
| By: | Mulabdic, Alen; Nayyar, Gaurav; Stapleton, Katherine |
| Abstract: | The environmental Kuznets curve postulates an inverted-U relationship between environmental degradation and economic growth. And economic growth has been synonymous with structural transformation. How do patterns of growth and structural transformation relate to carbon emissions? Based on data across almost 100 countries between 1960 and 2017, we find that the movement of workers into the manufacturing and services sectors is associated with a higher carbon emissions intensity of GDP. However, this positive association diminishes at higher shares of employment in both the manufacturing sector and modern, knowledge-intensive services. The diminishing positive association between emissions intensity and structural transformation towards these sectors is more discernible for developing economies compared with advanced economies. Further, based on sector-specific carbon emissions across 66 countries between 1995 and 2018, we find evidence of convergence in the carbon emissions intensity of production across countries in all sectors, with the potential for further reductions in developing economies, especially given relatively high indirect carbon emissions through inter-sectoral linkages. |
| Date: | 2025–09–15 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11214 |
| By: | Anaya Longaric, Pablo; Kostakis, Vasileios; Parisi, Laura; Vinci, Francesca |
| Abstract: | Europe’s lack of energy independence raises concerns about its vulnerability to external energy shocks, such as Russia’s 2022 invasion of Ukraine. This paper examines how energy shocks impact firm-level investment, comparing European and US firm responses. Using global oil supply news shocks, S&P’s Compustat data, and a local projections approach, the study reveals that European firms significantly cut capital and R&D expenditures after an oil shock, unlike US firms. The disparity is primarily driven by financially constrained firms in energy-intensive sectors. Additionally, differences in capital market structures play a role, as European firms relying more on market-based financing reduce investment by less. Lastly, our analysis confirms that the US shale revolution was a contributing factor in shaping Europe’s relative vulnerability. These findings highlight the need for national and EU policies to securethe energy supply, lower prices, and deepen capital markets, enhancing resilience and future competitiveness amid energy volatility. JEL Classification: D22, E22, F15, Q43 |
| Keywords: | competitiveness, corporate investment, energy, oil shocks |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20253116 |
| By: | Lola Blandin; Hélène Bouscasse; Sandrine Mathy |
| Abstract: | Social (in)justice is an argument often put forward to explain the successive setbacks to the roll-out of low-emission zones (LEZs) in France. However, until now, this is not based on any rigorous assessment. We are developing a methodology for assessing the impact of a LEZ on mobility vulnerabilities based on a multidimensional vulnerability indicator (VulMob). We apply this methodology to the Grenoble region. Firstly, we show that the number of households without a solution is extremely low and that there are solutions to help these households specifically, without calling the whole policy into question. Moreover, modal shift appears to be a high-potential adaptation solution for all households, which could improve the environmental and health performance of the LEZs. It should be noted, however, that highly vulnerable households are more affected and more likely to remain without a solution other than buying a car that complies with the LEZ. This work can guide the operational implementation of the LEZs and the definition of support policies, taking into account vulnerability profiles and the specific characteristics of the area. |
| Keywords: | Low Emission Zones, Mobility, Modal Shift, Public Policy Evaluation, Vulnerabilities. |
| JEL: | Q52 Q58 R48 |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:gbl:wpaper:2025-05 |
| By: | Lorenzo Emer; Andrea Mina; Andrea Vandin |
| Abstract: | Artificial intelligence (AI) is a key enabler of innovation against climate change. In this study, we investigate the intersection of AI and climate adaptation and mitigation technologies through patent analyses of a novel dataset of approximately 63 000 Green AI patents. We analyze patenting trends, corporate ownership of the technology, the geographical distributions of patents, their impact on follow-on inventions and their market value. We use topic modeling (BERTopic) to identify 16 major technological domains, track their evolution over time, and identify their relative impact. We uncover a clear shift from legacy domains such as combustion engines technology to emerging areas like data processing, microgrids, and agricultural water management. We find evidence of growing concentration in corporate patenting against a rapidly increasing number of patenting firms. Looking at the technological and economic impact of patents, while some Green AI domains combine technological impact and market value, others reflect weaker private incentives for innovation, despite their relevance for climate adaptation and mitigation strategies. This is where policy intervention might be required to foster the generation and use of new Green AI applications. |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2509.10109 |
| By: | Xia Li; Caroline Flammer |
| Abstract: | When exposed to greater physical and transition climate risks, are firms more likely to engage in climate mitigation, climate adaptation, or/and political strategies? This study examines this question and finds that firms exposed to greater physical and transition climate risks are less likely to undertake substantial mitigation efforts. Instead, they pursue other strategies. Specifically, firms exposed to greater physical climate risks are more inclined to pursue adaptation strategies, while firms facing higher transition climate risks are more likely to engage in anti-climate political strategies (such as lobbying against climate policies). The intensity of how firms manage their climate risks is influenced by their time horizon: the more myopic they are, the less they engage in climate mitigation and the more they oppose climate-friendly policies, thereby decreasing transition risks today while worsening their exposure to future physical and transition climate risks. Overall, this study provides insights into the (lack of) preparedness of the corporate sector for heightened climate risks. |
| JEL: | D72 G34 L21 M14 Q54 Q56 Q58 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34276 |
| By: | Alexandre Chirat (Université Marie et Louis Pasteur, CRESE UR3190, F-25000 Besançon, France); Basile Clerc (Université Paris Nanterre, EconomiX, UMR 7235, F-92000 Nanterre, France) |
| Abstract: | Drawing on the historical analogy with War Economy, this article investigates the concept of a “Climate War Economy” (CWE) to address the medium run macroeconomic imbalances inherent in the green transition. We argue that, as in war economies, the green transition is likely to generate a structural disequilibrium between constrained supply and rising demand, leading to medium-run inflationary pressures. This article uses the CWE analogy to open a broader discussion on the economic and political relevance of revisiting the macroeconomic stabilization tools deployed during World War II. It first examines how, in response to wartime constraints, governments suspended market mechanisms through price and quantity controls. Then, it explores the parallels with today’s green transition. By tracing the reasoning behind these interventions, the article shows how this historical experience can inform climate policy-makers and enriched ecological macroeconomics. Finally, the paper addresses the limitations of the war economy analogy, while arguing that price and quantity controls can be used to manage the macroeconomic imbalances of the green transition without undermining liberal democratic principles. |
| Keywords: | Green Transition, Inflation, Price control, War Economy, Planning |
| JEL: | Q54 P11 B00 N00 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:crb:wpaper:2025-10 |
| By: | Arenas Arroyo, Esther; Fabian, Jacob; Mengel, Friederike; Schmidpeter, Bernhard; Serafinelli, Michel |
| Abstract: | How does firms’ skill demand change as the business landscape evolves? We present evidence from the green transition by analyzing how hurricanes impact demand for green skills. These disasters signal the risks of not acting on environmental issues. Using data from U.S. online job postings (2010–2019) and hurricane paths, we create a new measure of green job postings. Firms in areas affected by hurricanes are 6.4% more likely to post jobs that require green skills after the event, particularly those serving local markets. |
| Keywords: | Green skills; Green transition; Online job postings; Hurricanes |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:wiw:wus005:77526928 |
| By: | Pablo Astorga (Institut Barcelona d’Estudis Internacionals (IBEI)) |
| Abstract: | From a long-term perspective little is known about income inequality in Venezuela. This is regrettable as the country offers a unique opportunity to study distributional dynamics in an economy dominated by oil richness since the 1920s amid an accelerated process of structural change amid demographic and institutional transformations. The main reason for this lacuna is scarcity of data. Consistently-defined household surveys are available from 1974 and cover only labour income. The paper benefits from a new set of Ginis based on dynamic social tables with four occupational groups defined by their skill level, and National Accounts data. This evidence sheds light on inequality in two contrasting periods shaped by the interplay of external forces linked to international oil markets and endogenous transformations: one from 1920 to the 1970s of a rapidly growing economy driven by the consolidation of the oil industry, the rise of the middle class, increasing real wages, and industrialisation; the other, ending in 2013 characterised by economic stagnation, a collapse in real wages, the hollowing out of the middle class, declining oil production, volatile oil rents, and de-industrialisation. Altogether, income inequality has been primarily oil driven, first, by a steady rise in oil production and fiscal revenues influencing the pace and nature of endogenous transformations; and, since 1973, by the timing of oil-price shocks. Overall inequality widened during the 1970s and 2000s booms, but also during the slump of the 1980s and 1990s. Prosperity favoured most those in the top group; adversity impacted worst those in the bottom group. |
| Keywords: | Economic Development, Income Inequality, Wage Structure, Non-renewable Resources, Oil Prices |
| JEL: | O10 O15 J3 Q32 Q43 |
| Date: | 2025–09 |
| URL: | https://d.repec.org/n?u=RePEc:hes:wpaper:0283 |
| By: | Rym Ayadi (City University of London); Yeganeh Forouheshfar (LEDA-DIAL - Développement, Institutions et Modialisation - LEDa - Laboratoire d'Economie de Dauphine - IRD - Institut de Recherche pour le Développement - Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres - CNRS - Centre National de la Recherche Scientifique, Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres); Omid Moghadas (REGARDS - Recherches en Economie Gestion Agroressources Durabilité et Santé - CRIEG - Centre de Recherche Interdisciplinaire Economie Gestion - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne) |
| Abstract: | The growing urgency of climate change necessitates innovative strategies to enhance system resilience across many sectors. Artificial Intelligence (AI) emerges as a transformative tool in this regard, yet existing research remains fragmented across sectors and regions. We conducted a systematic literature review of 385 peer-reviewed articles published between 2000 and early 2025, following the PRISMA protocol. The analysis classifies AI applications across nine key sectors and evaluates their relevance to adaptation, mitigation, or both. AI methodologies and regional distribution were also assessed. The findings show a dominant focus on adaptation (64.4%), with only 16% of studies addressing mitigation, and 19.4% engaging both. Classical Machine Learning techniques are the most used (51.4%), followed by deep learning models (22.3%). Regional disparities are evident: Asia and global-scale studies account for two-thirds of the literature, while Africa and South America are underrepresented. Sectorally, agriculture and urban infrastructure receive the most attention. Despite the promise of AI, major challenges persist in data access, model transparency, and equitable deployment, particularly in vulnerable regions. This review distinguishes itself by offering a comprehensive, cross-sectoral synthesis and emphasizing system-level resilience. It highlights the need for regionally tailored AI solutions, interdisciplinary collaboration, and ethical frameworks to ensure AI contributes meaningfully to global climate resilience efforts. |
| Abstract: | L'urgence croissante du changement climatique nécessite des stratégies innovantes pour renforcer la résilience des systèmes dans de nombreux secteurs. L'intelligence artificielle (IA) apparaît comme un outil transformateur à cet égard, mais les recherches existantes demeurent fragmentées selon les secteurs et les régions. Nous avons mené une revue systématique de la littérature portant sur 385 articles, publiés entre 2000 et le début de 2025, en suivant le protocole PRISMA. L'analyse classe les applications de l'IA dans neuf secteurs clés et évalue leur pertinence pour l'adaptation, l'atténuation (ou les deux) au changement climatique. Les méthodologies en IA ainsi que la répartition régionale ont également été examinées. Les résultats montrent une prédominance des travaux centrés sur l'adaptation (64, 4 %), tandis que seulement 16 % portent sur l'atténuation et 19, 4 % abordent les deux dimensions. Les techniques classiques d'apprentissage automatique sont les plus utilisées (51, 4 %), suivies par les modèles d'apprentissage profond (22, 3 %). Des disparités régionales sont évidentes : l'Asie et les études à l'échelle mondiale représentent les deux tiers de la littérature, tandis que l'Afrique et l'Amérique du Sud sont sous-représentées. Sectoriellement, l'agriculture et les infrastructures urbaines sont les plus représentés. Malgré le potentiel de l'IA, des défis majeurs persistent en matière d'accès aux données, de transparence des modèles et de déploiement équitable, en particulier dans les régions vulnérables. Cette revue se distingue en proposant une synthèse complète et intersectorielle, en mettant l'accent sur la résilience systémique. Elle souligne la nécessité de solutions d'IA adaptées aux contextes régionaux, de collaborations interdisciplinaires et de cadres éthiques afin de garantir une contribution significative de l'IA aux efforts mondiaux de résilience climatique. |
| Keywords: | artificial intelligence (AI), system resilience, climate change, green transition, sustainable development, climate adaptation, machine learning |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05268750 |