|
on Energy Economics |
| By: | Mr. Simon Black; Weronika Celniak; Alberto Garcia Huitron; Ian W.H. Parry; Paulina Schulz Antipa; Nate Vernon-Lin |
| Abstract: | This paper provides a bi-annual assessment of efficient fossil fuel prices and subsidies for 170 countries, based on a comprehensive analysis of environmental and other externalities from fuel consumption. Globally, explicit (or fiscal) subsidies were $725 billion (0.6 percent of GDP) in 2024. Implicit subsidies, primarily underpricing of environmental costs, were $6.7 trillion (5.8 percent of GDP), with three quarters from underpriced air pollution and climate change.* Relative to GDP, explicit subsidies have stablized at pre-COVID levels while implicit subidies have increased somewhat and are expected to rise gradually until 2035. Explicit subsidy removal would reduce CO2 emissions by six percent below baseline levels in 2035, avoid 70, 000 premature air pollution deaths annually, raise 0.6 percent of GDP in government revenue, and generate net economic benefits worth 0.5 percent of GDP. Removal of both explicit and implicit subsidies (through corrective taxes) generates substantially larger benefits, such as 1.1 million fewer premature air pollution deaths and a 46 percent reduction in CO2 emissions, but would be politically difficult. Subsidizing fuels is an inefficient way to support low-income households: for every dollar spent on explicit fuel subsidies, the poorest 20 percent of households receive just 8 cents. |
| Keywords: | Fossil fuel subsidies; efficient fuel prices; supply costs; climate change; local air polution mortality; traffic accidents; emissions reductions; revenue gains; welfare gains; distributional impacts |
| Date: | 2025–12–19 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/270 |
| By: | Ireri Hernandez Carballo; Elena Verdolini; Jan Christoph Steckel; Massimo Tavoni; Francesco Vona |
| Abstract: | Addressing climate change requires policies that are ethically defensible, politically acceptable, and implementable. The concept of a ‘just transition’—a decarbonization process that avoids leaving workers and communities behind and mitigates burdens on vulnerable and historically marginalized groups—has gained prominence in academic and policy debates. This paper bridges these debates with insights from environmental economics. We identify and examine four key dimensions of a just transition—distributional, restorative, procedural, and recognition justice—and use them to map existing economic research. We highlight the contributions and limitations of environmental economics in addressing justice concerns and discuss gaps that future research should address to better inform the design of equitable climate policies. |
| Keywords: | just transition, environmental economics, climate policy, energy transition, decarbonization |
| JEL: | Q50 Q56 D63 P18 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12357 |
| By: | Le, Hoanh; Gálvez-Soriano, Oscar |
| Keywords: | Land Economics/Use, Resource/Energy Economics and Policy, Environmental Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343763 |
| By: | Hankinson, Michael (George Washington University) |
| Abstract: | Research on energy siting conflict argues that high levels of local control and public input increase the perceived fairness of the permitting process. However, these studies largely rely on retrospective evaluations, meaning respondents may form their attitudes about procedural fairness and legitimacy based on whether they secure their preferred policy outcome. In contrast, I use experimental designs to randomly vary whether respondents learn the policy outcome prior to judging the permitting process. Across two pre-registered survey experiments, state control and limited public input decrease the perceived fairness and legitimacy of wind turbine siting. This relationship is unaltered by knowing the policy outcome. However, the resilient effect of these specific process on legitimacy is only around half the size as the effect of getting one's preferred policy outcome. Consequently, studies which measure public perceptions after siting may largely capture the effect of the outcome, rather than that of process alone. |
| Date: | 2025–12–24 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:8xf3m_v1 |
| By: | Marco Pinchetti |
| Abstract: | Not all geopolitical shocks hit the economy in the same way – and that matters, especially for their transmission to inflation. This blog post, based on a recent Banque de France working paper, proposes a novel methodology to decompose geopolitical risk fluctuations into geopolitical energy shocks and geopolitical macro shocks. <p> Tous les chocs géopolitiques n’affectent pas l’économie de la même manière – et c’est un point important, en particulier s’agissant de leur transmission à l’inflation. Ce billet de blog, qui s’appuie sur un récent document de travail de la Banque de France, propose une méthodologie novatrice pour décomposer les fluctuations du risque géopolitique en chocs géopolitiques énergétiques et chocs géopolitiques macroéconomiques. |
| Date: | 2025–11–24 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:420 |
| By: | Tomás Peruchin (Department of Economics, Universidad de San Andrés) |
| Abstract: | This thesis examines the design of petroleum exploration and production (E&P) rights auctions in Argentina, emphasizing the theoretical and policy implications of President Milei’s 2024 Ley Bases reform to Hydrocarbon Law 17, 319, which introduced royalty bidding as an alternative to the prevailing investment-commitment framework.The study develops a Bayesian auction model in which firms, facing incomplete information, compete after receiving noisy private signals regarding the tract’s underlying value. Two mechanisms are examined: (i) work-commitment bidding, where competition is based on the scale of exploration and production expenditures under a flat royalty; and (ii) royalty bidding, where firms bid a royalty rate rather than committing to a fixed investment level.The symmetric Bayesian Nash equilibrium is characterized by numerically solving coupled integro-differential equations, calibrated to the specific conditions of Argentina’s hydrocarbon sector.The analysis reveals a key policy trade-off: royalty bidding enhances government rent capture but exposes the state to greater fiscal volatility, whereas work-commitment schemes provide more stable, though typically smaller, revenue flows, limiting the upside from high-quality tracts. |
| Keywords: | Auction of Natural Resources; Bayesian Nash Equilibrium; Petroleum Contract Design; Oil and gas E&P rights; Fiscal Regimes in Extractives; Resource Rent Capture. |
| JEL: | D44 D82 H21 Q35 Q38 Q47 Q48 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:sad:ypaper:20 |
| By: | Luc Jacolin; Florian Léon; Edouard Mien; Paul Vertier |
| Abstract: | Granular mine data show that the supply of minerals critical to the energy transition reacts rapidly to price movements caused by demand shocks. The reaction depends on the characteristics of mines and of global mineral markets. It is weaker in Africa due to the higher prevalence of conflicts near mines, which makes it harder for supply to adjust. <p> Des données minières granulaires permettent de montrer que l’offre de minerais critiques à la transition énergétique réagit rapidement aux variations de prix induites par un choc de demande. Cette réaction dépend des caractéristiques des mines et du marché mondial. Elle est plus faible sur le continent africain, en raison de conflits plus nombreux à proximité des mines, limitant la capacité de réaction de l’offre. |
| Date: | 2025–11–20 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:419 |
| By: | Shivani, .; Khan, Sarah; Ramji, Aditya; Das Banerjee, Anannya |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt3qs6r50g |
| By: | Shivani, .; Khan, Sarah; Ramji, Aditya |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt5wj570b8 |
| By: | Wang, Yitian (Department of Economics, Monash University, Clayton, Australia); Vespignani, Joaquin (Tasmanian School of Business & Economics, University of Tasmania); Smyth, Russell (Department of Economics, Monash University, Clayton, Australia) |
| Abstract: | Accelerating transport electrification is vital for net-zero goals, yet remains hindered by slow, uncertain development of battery minerals. We show how non-technical risk, such as policy, regulatory, social, and geopolitical risk, inflate capital costs, delay greenfield supply, and heighten price volatility for lithium, cobalt, nickel, manganese, graphite, and copper. Combining Fraser Institute investment scores with reserve shares of these critical minerals, we construct dynamic, mineral-specific risk premiums, derive an optimal stockpiling rule balancing risk and storage costs and introduce a distance-to-iso-cost map comparing recycling and stockpiling strategies. Our framework suggests that in 2040 recycling-led stabilization will be the optimal strategy for mitigating non-technical risk for Japan and Korea, strategic stockpiling will be the optimal strategy for China and the United States, and mixed outcomes for Europe. The method that we propose provides a tractable and updateable toolkit for deciding optimal stockpiles and prioritising recycling where it is most cost-effective. |
| Keywords: | economics; finance; energy economics |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:tas:wpaper:60464201 |
| By: | Shivani, .; Das Banerjee, Anannya; Ramji, Aditya |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt3db4b4cv |
| By: | David Rapson; Blake Shaffer |
| Abstract: | Electricity distribution network constraints may ultimately limit the pace of transportation electrification. This paper examines the underappreciated challenges that electric vehicle (EV) adoption poses for the distribution grid. While prior research has focused on bulk power and private service upgrades, we emphasize how local distribution capacity is strained by reduced load diversity at small aggregations. We highlight two alternatives to costly infrastructure expansion: (1) demand-based tariffs that allocate scarce distribution capacity more efficiently, and (2) managed charging programs that coordinate EV loads within local limits. While managed charging reduces transformer overloads and smooths load profiles, consumer participation remains a barrier. Economists can play a key role by designing rate structures that align user incentives with local network constraints and by evaluating consumer acceptance of these solutions as electrification advances. |
| Keywords: | energy transition; electrification; electricity distribution network |
| JEL: | L94 Q40 Q50 |
| Date: | 2025–12–22 |
| URL: | https://d.repec.org/n?u=RePEc:fip:feddwp:102283 |
| By: | Li, Yanning PhD; Jenn, Alan PhD |
| Abstract: | The transition to a decarbonized energy system is creating significant changes in the electricity distribution grid, particularly with the rapid uptake of electric vehicles (EVs). This study explores the equity implications of these changes by analyzing needed distribution grid upgrades across various communities in California. Utilizing real-world distribution grid data and detailed simulations of light-duty, medium-duty, and heavy-duty EV charging behavior, we assess the spatial disparities in grid resource upgrade needs and utilization. Our findings show that by 2035, with the growth in EV charging demand, high-density residential areas are expected to have a higher fraction of feeders (neighborhood electric lines and transformers) that will need an upgrade. Additionally, communities with higher CalEnviroScreen scores (indicating greater pollution and socioeconomic burdens) generally exhibit lower EV adoption rates and are expected to have a higher share of feeders that will need to be upgraded, though with less extensive upgrades on average. Despite differences in capacity upgrade needs among different communities, the costs versus benefits from the upgraded distribution grid resources is expected to be quite proportional among different communities. While the top 20% disadvantaged communities utilize grid resources less than other communities due to their lower charging demand, the infrastructure upgrade costs in these communities are also lower. |
| Keywords: | Engineering, Electric vehicles, Electric vehicle charging, Electrical grids, Electric power transmission, Underserved communities, Transportation equity |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt0wc135vt |
| By: | Baptiste Rigaux; Sam Hamels; Marten Ovaere (-) |
| Abstract: | We study household acceptance of flexibility contracts for electric vehicles (EVs) and heat pumps (HPs), two key technologies for the energy transition. Using a survey and choice experiment with around 3, 000 households, we analyze how contract design—particularly comfort limits such as indoor temperature or driving range— affects both the decision to participate and the flexibility households are willing to supply at different levels of remuneration. Around 70% of households in our sample are willing to participate. Discomfort affects utility nonlinearly for EVs: remaining range is valued at close to €0/km above 100 km but rises to €0.40/km below, while HP flexibility is valued at about €2 per degree of indoor temperature reduction. We derive conditions under which flexibility contracts can achieve cost-effectiveness while remaining acceptable to households. Back-of-the-envelope calculations suggest potential load reductions of up to 300 MW/event from HPs and 800 MW/event from EVs per million units. |
| Keywords: | Electricity Demand; Choice Experiment; Preferences; Thermal comfort; Range anxiety; Heat pump; Electric vehicle |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:rug:rugwps:25/1130 |
| By: | Palia, Ridhi; Das Banerjee, Anannya; Ramji, Aditya; Khan, Sarah |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt8x683995 |
| By: | Jain, Aakansha; Ramji, Aditya; Parés Olguín , Francisco |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt9n1768tk |
| By: | Jamel Saadaoui; Russell Smyth; Joaquin Vespignani; Yitian Wang |
| Abstract: | Geopolitical tensions between the United States and China pose significant risks to global critical-mineral supply chains, particularly because refining capacity for most critical minerals, including aluminium, copper, nickel, tin and zinc, is overwhelmingly concentrated in China. Using monthly data from 1995-2025 and a structural VAR-local projection framework, we estimate the dynamic effects of exogenous shocks to the US-China Political Relations Index (PRI) on mineral markets. We find that geopolitical deterioration systematically induces significant precautionary stockpiling. We then construct a multidimensional friend-shoring index incorporating reserves, alignment, regime type and distance, showing that only a narrow set of United States partners, primarily Australia and Canada, offer feasible pathways for refining diversification. The policy recommendation stemming from our findings is that the United States should make strategic stockpiling of refined critical minerals, rather than raw ores, the centerpiece of its strategy to build supply chain resilience, while negotiating long-term bilateral packages for the supply of refined critical minerals with Australia and Canada. |
| Keywords: | geopolitical risk, critical minerals, friend-shoring |
| JEL: | Q34 Q37 F51 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2025-72 |
| By: | Sébastien Houde; Maya Papineau; Nicholas Rivers; Kareman Yassin |
| Abstract: | We introduce the concept of marginal hassle cost (MHC)–the opportunity cost of time required to complete burdensome administrative tasks–as a measure of non-pecuniary transaction costs. We then propose an experimental procedure to elicit the MHC and validate the approach through a large-scale field experiment on heat pump adoption in Canada. On average, the MHC is equal to respondents’ wage rate, but it exhibits substantial individual heterogeneity and is only weakly correlated with wages. MHCs are systematically higher for human-assisted than for computer-assisted tasks. Our findings highlight that total hassle costs are economically significant and deter participation in government programs aimed at decarbonization. |
| Keywords: | hassle costs, government programs, decarbonization, field experiments |
| JEL: | H20 H31 Q40 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12326 |
| By: | Billerbeck, Anna; Hoffmann, Jakob (LMU Munich); Fritz, Markus |
| Abstract: | The fate of the energy transition hinges not only on the existence of well-crafted policies, but also on their successful implementation, oftentimes by conglomerates of local actors. Usually involving both public and private parties without clear hierarchies, local implementation of policy is a process of multi-stakeholder governance and often characterized by difficult collective decision-making due to different perceptions of challenges and priorities. A good example of this process is energy and heat planning, which involves several local stakeholders with different hierarchical structures. In this paper, we study the evaluation of challenges and success factors among municipalities and utilities in the context of heat planning in Germany. Based on a survey of 267 communal stakeholders, we find an effect of inversion in juxtaposing importance and difficulty ratings: While municipalities perceive factors such as effective communication, clearly defined responsibilities and concrete measures and projects as more important than their utility counterparts, utilities see them as more challenging. Such perceptual inversion has the potential to complicate collective goal-setting and decision-making and thus can slow down energy transition governance processes. |
| Date: | 2025–12–08 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:pagvs_v1 |
| By: | Khanna, Shefali |
| Abstract: | Market-based instruments like carbon pricing are increasingly being adopted in developing countries to mitigate carbon emissions. However, institutional features such as long-term electricity contracts and regulated tariffs may mute their effectiveness. I explore this question in the context of the electric power sector in India, where electricity is transacted primarily via long-term bilateral contracts and state-owned distribution utilities self-schedule contracted power plants to meet their demand. The absence of a centralized and dynamic market-based economic dispatch mechanism generates short-run misallocation in electricity dispatch and distorts long-run investment decisions, such as the incentive to invest in flexible generation capacity and energy storage to complement renewable-based capacity. Using panel data on coal price schedules and monthly plant-level operations from 2012 to 2020, I construct a predicted delivered coal price index to estimate the elasticity of plant utilization with respect to fuel prices. I find that the demand for electricity from coal-fired power plants with a higher share of capacity allocated under long-term bilateral contract(s) is less sensitive to changes in coal prices, implying that the existing market design could erode some of the environmental benefits of carbon pricing. |
| Keywords: | regulated industries; utilities; energy demand; energy markets |
| JEL: | R14 J01 |
| Date: | 2025–12–12 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129494 |
| By: | Rennert, Kevin (Resources for the Future); Ho, Mun (Resources for the Future); Nehrkorn, Katarina (Resources for the Future); Elkerbout, Milan (Resources for the Future) |
| Abstract: | The Clean Competition Act (CCA) of 2025, updated and introduced to the 119th Congress by Senator Sheldon Whitehouse (D-RI), would establish a domestic performance standard and a symmetric carbon border adjustment mechanism (CBAM) for certain energy-intensive, trade-exposed goods. US manufacturers of goods covered by the legislation would pay a fee for carbon emissions above a benchmark specified for those goods. Imported, covered goods would face an analogous tariff based on how much more carbon-intensive that good was compared to the benchmark. The benchmark for each good would initially be set at the average level of emissions for its manufacture in the United States, becoming more stringent over time. The carbon emissions fee and tariff rates would also increase over time, providing an ongoing set of symmetric incentives to reduce the emissions intensity of both US manufacturing and imported goods.Here, we use the Global Economic Model (GEM) to assess the effects of a CBAM stylized after the CCA.We find that the CCA would have the following effects:Shift US imports toward countries with less carbon-intensive manufacturing: Imports for covered products are reduced from countries facing the carbon tariffs (e.g., China, Mexico, and India) and increased from countries exempt from the tariffs (e.g., the European Union, United Kingdom, and Japan) due to their lower carbon intensity of manufacturing for those products.Reduce emissions globally, led by the United States: Emissions are projected to decrease globally by 81 million metric tonnes (MMt) in the first year of the policy, with US emissions reductions of 63 MMt leading all other countries. The increasing fee and tightening standards lead to greater reductions over time, with 140 MMT of global and 119 MMt of US emission reductions in the tenth year after enactment. US emissions reductions result from decreased energy and emissions intensity of manufacturing driven by the CCA’s domestic performance standard, as well as reductions in overall demand for energy intensive goods.Raise revenue: Annual revenues from the policy are projected to be $7.2 billion (in 2024 US$) for the covered refining and manufacturing sectors in the first year and total $101 billion over the first ten years of the policy. Roughly 75 percent of the revenues derive from the domestic performance standard.Reduce US outputs in covered sectors and downstream industries: The tariffs have a protective effect for US manufacturers, whilst the performance standard increases costs for higher-intensity producers. The balance of effects is slightly negative for US production of covered products: cement (–0.02 percent), aluminum (–1.9 percent), iron and steel (–0.6 percent), and pulp and paper (–0.3 percent). Output in industries such as construction and transportation equipment manufacturing falls slightly (0.04–0.5 percent) in response to higher prices for covered inputs. |
| Date: | 2025–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:rff:report:rp-25-19 |
| By: | Moradipoor, Sorour; Jalaee, Seyed Abdolmajid |
| Abstract: | This paper develops a non-cooperative game-theoretic model to analyze strategic natural gas export decisions under binding geopolitical and institutional constraints, focusing on Iran–Qatar interaction in the European market. Export strategies are defined as empirically grounded regimes rather than continuous quantities, capturing observed export suspensions and partial utilization under sanctions and infrastructural frictions. The model incorporates quantity-dependent production and transportation costs as well as explicit geopolitical constraint penalties. Scenario-based payoff matrices calibrated to post-2022 market conditions reveal that rising constraint costs can render high-export strategies unprofitable even at elevated gas prices. The analysis identifies an asymmetric Nash equilibrium in which Qatar maintains high exports while Iran optimally reduces or suspends exports. These results highlight that institutional access and geopolitical frictions, rather than resource endowments alone, are central determinants of export behavior and European energy security in fragmented gas markets. Keywords: Geopolitical constraints; Natural gas exports; Game theory; European gas market; Iran–Qatar interaction; Energy security. |
| Date: | 2025–12–27 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:awh2s_v1 |
| By: | Ashley C. Craig; Thomas Lloyd; Dylan Moore; Ashley Craig |
| Abstract: | How should taxes on externality-generating activities be adjusted if they are regressive? In our model, the government raises revenue using distortionary income and commodity taxes. If more or less productive people have identical tastes for externality-generating consumption, the government optimally imposes a Pigouvian tax equal to the marginal damage from the externality. This is true regardless of whether the tax is regressive. But, if regressivity reflects different preferences of people with different incomes rather than solely income effects, the optimal tax differs from the Pigouvian benchmark. We derive sufficient statistics for optimal policy, and use them to study carbon taxation in the United States. Our empirical results suggest an optimal carbon tax that is remarkably close to the Pigouvian level, but with higher carbon taxes for very high-income households if this is feasible. When we allow for heterogeneity in preferences at each income level as well as across the income distribution, our optimal tax schedules are further attenuated toward the Pigouvian benchmark. |
| Keywords: | optimal taxation, externalities, corrective taxation, income taxation, climate change, carbon tax, commodity taxation, redistribution |
| JEL: | H21 H23 Q52 Q54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12317 |
| By: | Mr. Damien Capelle; Eduardo Espuny Diaz; Mr. Divya Kirti; Mr. Germán Villegas-Bauer; Sharan Banerjee |
| Abstract: | This paper analyzes the effectiveness of green financial policies—green credit policies and free emissions allowances—at improving emission efficiency while supporting output. We develop a heterogeneous-firm model with financial constraints and endogenous adoption of cleaner capital. The model matches key targeted and untargeted moments from granular micro-data, including the facts that more financially constrained firms are less productive, more emission intensive, and respond less to carbon pricing. In counterfactual simulations in our model, credit policies without green bias raise output but also raise emissions, as firms become more capital and energy intensive. In contrast, well-targeted green credit policies—focusing on frontier technologies—cut emissions while boosting output. In the presence of financial frictions, free emissions allowances offset the output costs of carbon pricing, breaking the usual irrelevance of permits allocation. |
| Keywords: | Climate Change; Emissions; Financial Constraints; Financial Frictions; Productivity; Technology Adoption; Capital Vintages. |
| Date: | 2025–12–19 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/269 |
| By: | Berg, Florian; Ceccarelli, Marco; Heeb, Florian; Ivashchenko, Alexey; Rigobón, Roberto; Zwinkels, Remco C. J. |
| Abstract: | We study pricing in the voluntary carbon market (VCM) using a novel proprietary dataset of sales of emission reduction certificates (credits) by a leading VCM dealer. We document extraordinary price dispersion, with carbon credits trading between a few cents and $100 per ton of CO2. Prices are systematically related to the credit project, buyer, and trade characteristics, rather than to a common value of carbon emissions. Credits from the least reliable emission reduction technologies, but with positive noncarbon externalities, are twice as expensive as trusted industrial solutions. Buyers in low-emission industries, wealthier countries, and large firms pay a premium for carbon credits, while heavy polluters and firms with explicit sustainability commitments do not. VCM pricing also features volume and client relationship discounts typical for over-the-counter markets. Finally, we document a causal link between the introduction of the VCM futures market and price premia for credits eligible for expiring futures settlement. |
| JEL: | Q54 G12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:333925 |
| By: | Cornish, Brian; Miao, Ruiqing |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:344079 |
| By: | Bernd Bonfert (Métis Lab EM Normandie - EM Normandie - École de Management de Normandie = EM Normandie Business School) |
| Abstract: | Rising energy costs expose the instability of our energy system and underline the urgency of transitioning towards decentralized renewable energy provision. Many European countries have tasked municipalities with driving this transition and the European Union has designated local energy communities to receive stronger support. Energy communities involve public, private or community actors in co-producing and distributing renewable energy. They are often praised for helping democratize, decentralize and socially embed the energy system, but remain constrained by economic and legal barriers. To what extent they can contribute to transforming the energy system thus depends on their ability to scale beyond their niche.This article identifies opportunities and challenges encountered by energy communities, especially regarding legislation, municipal governance, and stakeholder participation. Drawing on 'foundational economy' concepts, it explains to what extent energy communities are governed and scaled by public, private or community actors, and discusses the transferability, social cohesion, and democratizing potential of energy innovations. The article compares qualitative findings from four energy community pilot projects in the Netherlands, Belgium, Sweden and the UK, based on interviews, observation and document analysis. It finds that while many cities are wellpositioned to launch energy communities, they lack the authority and means to scale up innovations, thus having to rely on other actors. While private companies are often hesitant about adopting innovations, municipal companies are more willing to do so, yet citizen participation is lacking across cases. Findings thus underline a need for legislation to remove barriers to energy innovation and enable democratic participation. |
| Keywords: | Public companies, Citizen participation, Local governance, Peer-to-peer exchange, Social innovation, Renewable energy, Energy communities |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05395002 |
| By: | Maxime Barthe; Thomas Choquet; Tristan Jourde |
| Abstract: | Where firms fail to disclose their carbon emissions, the data can be estimated using machine learning models, which yield better predictive performances than standard methods. When combined with human expertise, these models can fill in gaps in the data and refine the assessment of transition risk. <p> Lorsqu’aucune donnée d’émissions carbone n’est publiée par les entreprises, cette information peut être estimée à l’aide de modèles d’apprentissage automatique, dont les performances prédictives surpassent celles des méthodes classiques. Complétés par une expertise humaine, ces modèles permettent de combler les lacunes en matière de données et d’affiner l’évaluation des risques de transition. |
| Date: | 2025–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:421 |
| By: | Fekria Belhouichet; Guglielmo Maria Caporale; Luis Alberiko Gil-Alana |
| Abstract: | This study examines the contemporaneous and lagged connectedness between the daily returns of AI and robotics-related assets, a global stock market index, commodity prices (gold and Brent crude oil), cryptocurrencies, and a carbon index over the period from 3 January 2023 to 30 September 2025, against a backdrop of persistent geopolitical tensions, using the innovative R² connectedness method developed by Balli et al. (2023). The results reveal that contemporaneous effects predominate over lagged ones. Furthermore, AI and robotics-related assets behave primarily as net emitters of shocks, as does the MSCI World Index, which exerts positive contagion effects and plays a central role in risk transmission. By constrast, gold and Brent crude oil act as net receivers of shocks, which in the case of the former reflects its role as a safe-haven asset. Cryptocurrencies instead exhibit heterogeneous dynamics : Cardano (ADA) acts as a net transmitter of shocks, while Bitcoin (BTC) and Stellar (XLM) behave more as receivers, contributing to market stability. Finally, the CO₂ index displays net negative connectedness, which confirm its role as a receiver of shocks. These findings provide useful information to investors and portfolio managers for risk diversification purposes and to policy-makers for ensuring financial stabilily, especially during periods of market turbulence. |
| Keywords: | assets returns, CO2 emissions, contemporaneous and lagged R2 connectedness |
| JEL: | C32 G11 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12333 |
| By: | Daniel H. Karney; Don Fullerton; Kathy Baylis |
| Abstract: | Computational general equilibrium (CGE) models can evaluate detailed tax reforms, trade restrictions, or environmental policy. These models can capture many complexities, but these complexities can make results difficult to interpret. Analytical general equilibrium (AGE) models provide better intuition and interpretation but cannot capture relevant complexities. We propose a method that employs AGE models to understand CGE models – a “model of the model”. We apply this idea to climate policy and carbon leakage – the increase in emissions elsewhere. Our AGE models identify seven key economic determinants of leakage within any one outcome. We then unpack results from three existing CGE models. |
| Keywords: | analyticala general equilibrium, AGE, and computable general equilibrium (CGE) models |
| JEL: | C63 H23 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12332 |
| By: | Eugenie Dugoua; Jacob Moscona |
| Abstract: | This chapter examines the economics of climate innovation and its role in the clean technology transition. It outlines the incentives, market failures, and policy levers that shape the development and diffusion of clean technologies; traces global patterns in technology development and deployment; and highlights frontier challenges and open questions related to climate adaptation, critical mineral supply chains, artificial intelligence, and geopolitics. The analysis explores the role of effective climate policy, stressing the relevance of coordinated approaches that match instruments to technology maturity and local context. |
| JEL: | O3 O30 O31 O33 O38 Q5 Q55 Q58 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34601 |
| By: | Heeb, Florian; Kölbel, Julian; Weder, Camilla |
| Abstract: | This paper surveys beliefs about the climate impact of green investing among academic experts and retail investors. Using the views of academic experts as a benchmark, we show that retail investors have overly optimistic climate impact beliefs. While most academic experts do not believe that a typical green fund has a meaningful climate impact, the vast majority of retail investors do. The median retail investor expects a e10, 000 green investment to offset 10% of an average person's carbon footprint. By contrast, the median estimate among academic experts is 2%, with 0% being the most common estimate. Impact beliefs influence investment decisions: When informed of academic experts' views, retail investors reduce their climate impact beliefs and willingness to pay for the green fund. Qualitative statements suggest that retail investors' optimistic beliefs are driven by a neglect of financial-market transmission mechanisms. |
| Keywords: | green finance, subjective beliefs, climate change, willingness to pay, expert survey, behavioral finance |
| JEL: | D14 G11 G41 H41 Q54 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:333926 |
| By: | Bakhtavoryan, Rafael; Hovhannisyan, Vardges |
| Keywords: | Demand and Price Analysis, Consumer/Household Economics, Environmental Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343883 |
| By: | Henrekson, Magnus (Research Institute of Industrial Economics (IFN)) |
| Abstract: | This study critically examines HYBRIT (Hydrogen Breakthrough Ironmaking Technology), a Swedish flagship project—led by the government-owned iron ore company LKAB—to produce fossil-free sponge iron using hydrogen from fossil-free electricity. Positioned as a cornerstone of the EU Green Deal and Sweden’s green industrial transition, HYBRIT promised CO₂ reductions significantly exceeding Sweden’s current total emissions, but entailed unprecedented technological, economic, and infrastructural challenges. The analysis situates HYBRIT within the broader trend of “moonshot” industrial policies, emphasizing their susceptibility to political enthusiasm, rent-seeking, and disregard for opportunity costs. Technologically, the project required large-scale hydrogen production, storage, and industrial adaptation, unproven at a commercial scale. Economically, profitability hinged on exceptionally low electricity prices and high CO₂ emission costs—conditions unlikely to persist—while facing intensifying global competition in the green steel sector. Electricity supply constraints, particularly in northern Sweden, compounded feasibility concerns. Political, regional, and corporate interests aligned to advance HYBRIT despite these risks, aided by limited external scrutiny of state-owned firms. Growing criticism and competing priorities eventually led LKAB to defer its sponge iron ambitions indefinitely, reframing its strategy around high-grade ore and the extraction of rare earth metals and phosphorus. The case illustrates the pitfalls of mission-oriented policies when technological and market realities are subordinated to political symbolism, underscoring the need for rigorous, independent evaluation of large-scale green industrial projects. |
| Keywords: | Green deals; Green steel; Hydrogen; Mission-oriented policies; Moonshots; Public choice; Rent-seeking |
| JEL: | L20 L52 L70 O38 Q28 Q48 |
| Date: | 2025–12–11 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1546 |
| By: | Bisi, Davide; Landini, Fabio; Rinaldi, Riccardo |
| Abstract: | The interaction between organised employee representation (ER) and firms' engagement in the green transition remains insufficiently understood. Theoretically, two opposing mechanisms may operate. In the bargaining view, representation can slow green investments by increasing adjustment costs and exposing firms to rent-seeking pressures. In contrast, the employee voice perspective holds that ER enables sustainability by facilitating information exchange, eliciting workers' environmental preferences, and supporting joint problem-solving when organisational adaptation is required. We test these predictions using survey and administrative data from nearly 2, 000 firms in Emilia-Romagna. Firms with ER are systematically more likely to pursue green investments, especially in climate mitigation, water use, circularity, and pollution prevention. These results also hold when accounting for the endogeneity of ER via IV. Consistent with the voice mechanism, the association between ER and green investments is stronger in firms employing younger and more educated workers, who are more likely to hold proenvironmental preferences and contribute specialised knowledge relevant for organisational change. Taken together, our findings challenge the view that organised labour inhibits the green transition. Instead, ER emerges as a strategic policy lever that can foster decarbonisation pathways that are technologically feasible, socially negotiated, and democratically anchored at the workplace level. |
| Keywords: | worker voice, employee representation, sustainability, climate change, green investments |
| JEL: | J50 O33 Q50 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:glodps:1699 |
| By: | Ladha, Rijhul; Das Banerjee, Anannya; Ramji, Aditya; Hwang, Roland |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–11–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt4jr4348c |
| By: | Julian Keutz (Institute of Energy Economics at the University of Cologne (EWI)); Jan Hendrik Kopp (Institute of Energy Economics at the University of Cologne (EWI)) |
| Abstract: | The European Unions pursuit of climate neutrality necessitates a robust and secure energy system that will likely become reliant on imported green hydrogen. However, this dependency introduces inherent risks related to import disruptions and the weather-driven production variability of green hydrogen. This paper develops a comprehensive modeling approach to address these risks in a decarbonized European energy system. We use stochastic optimization to account for weather-induced variability, while applying dedicated mitigation strategies to analyze the cost and implications of hedging against import disruptions. We model hydrogen imports via long-term contracts, with prices and delivery profiles determined based on a stochastic calculation of the levelized cost of hydrogen supply. This approach informs the stochastic modeling of the European energy system using the HYEBRID model, which accounts for weather variability across domestic and exporting regions. Our analysis reveals that the stochastic extension of HYEBRID reduces system costs by one-third compared to a deterministic solution that assumes average weather conditions. We also identify the need for a substantial expansion of hydrogen storage capacity, considerably exceeding previous estimates, to manage fluctuations in both domestic and imported supply. A pure cost minimization of imports results in significant market concentration, with only three exporters being contracted. By evaluating strategies to mitigate import disruption risk, we find that diversification and import reduction strategies incur higher costs in the investment stage, which can be economically justified if the perceived risk of exporter disruption is sufficiently high. |
| Keywords: | Energy System Modeling; Hydrogen Infrastructure; Stochastic Optimization; Weather Variability; Hydrogen Import Risks |
| JEL: | C61 F52 Q27 Q41 Q42 Q48 |
| Date: | 2025–12–17 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:021921 |
| By: | Jonathan Thebault; Meltem Chadwick |
| Abstract: | This study shows that Paris-aligned indices (PAB) have similar return and volatility to conventional indices for both equities and bonds. Thus, from an investor’s perspective, Paris aligned investments do not necessarily add volatility despite reduced diversification, and they may offer investors, including institutionals, an opportunity to green their portfolios without taking on additional risk. <p> Cette étude montre que les indices alignés sur l’Accord de Paris (Paris-aligned benchmarks, PAB) ont des rendements et une volatilité comparables à ceux des indices classiques pour les actions comme pour les obligations. Ainsi, du point de vue de l’investisseur, les investissements alignés sur l’Accord de Paris n’accroissent pas nécessairement la volatilité, malgré une diversification réduite, et ils peuvent offrir une possibilité de verdir les portefeuilles sans prendre de risque supplémentaire, y compris pour les investisseurs institutionnels. |
| Date: | 2025–12–08 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:422 |
| By: | Kumar Abhishek (Indian Council for Research on International Economic Relations (ICRIER)); Amrita Goldar; Sunishtha Yadav; Sajal Jain; Diya Dasgupta |
| Abstract: | The escalating threat of global climate change has positioned energy efficiency (EE) at the forefront of energy and environmental policy. While EE technologies offer significant potential to reduce both financial costs and environmental impacts, their adoption remains limited, revealing a persistent paradox. Drawing evidence from key focus states, this study examines the barriers contributing to the EE adoption gap, highlighting compliance-driven behaviour, high upfront costs, undervaluation of future savings, and gaps in workforce skills. Integrating repair and maintenance practices with operational processes emerges as a critical pathway to expand adoption. Beyond operational benefits, EE investments also generate significant macroeconomic spillovers by creating jobs and upskilling workers, reinforcing their strategic value. These findings highlight the EE gap and underscore the need for coordinated, integrated approaches that strengthen in-house capacity, support workforce development, and simultaneously drive adoption, operational efficiency, and broader socio-economic gains. |
| Keywords: | Energy Efficiency Gap, Market Barriers, Behavioural Barriers, Employment, icrier |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:ppaper:53 |
| By: | Siwar Khelifa; Jie He |
| Abstract: | This paper provides the first evidence from a developing-country setting on the long-term educational impacts of early-life exposure to a major environmental regulation. We study China's 1998 Two Control Zones policy and implement a difference-in-differences design comparing adjacent birth cohorts in targeted and non-targeted counties. We find no detectable effects of early-life exposure to the policy on long-term educational outcomes. Across a wide range of measures, including high school attendance, academic versus vocational track placement, and high-quality school attendance around age 15, as well as college entrance exam participation, exam scores, and post-secondary enrollment around age 18, the estimates are statistically indistinguishable from zero. These null results are robust across alternative specifications and hold in subgroups defined by gender and maternal education. |
| Keywords: | Education, environmental regulation, TCZ policy, early-life conditions, China |
| JEL: | I18 I24 J24 Q51 Q56 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:irn:wpaper:25-08 |
| By: | Cheng, Yang; Hu, Lianyi |
| Keywords: | Research and Development/Tech Change/Emerging Technologies, Labor and Human Capital, Resource/Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343645 |
| By: | Jakub Bandurski (University of Warsaw, Faculty of Economic Sciences); Eliza Hałatek (University of Warsaw, Faculty of Economic Sciences); Adam Łaziński (University of Warsaw, Faculty of Economic Sciences); Michał Künstler (University of Warsaw, Faculty of Economic Sciences) |
| Abstract: | The Energiewende is a deep-rooted notion in the German economy. The main goal is to achieve climate neutrality by transitioning to renewable energy sources. However, the feasibility of this transition is partially hindered by power grid congestion, which undermines system efficiency and leads to both economic and environmental costs. We address this issue by making a prediction of the likelihood of congestion occurrence within the German TenneT DE electricity network in the years 2020-2023. We propose a twofold approach offering a combination of advanced econometric models and state-of-the-art machine learning methods. We offer separate solutions for up congestion when additional energy needs to be pushed to the network as well as down congestion when energy needs to be pulled away from the network. Analyzing the CatBoost with XAI, we identify factors that play a significant role in driving redispatch events within the German electricity network. |
| Keywords: | energiewende, econometrics, machine learning, climate policy, catboost |
| JEL: | Q47 Q48 Q54 C01 C53 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:war:wpaper:2025-30 |
| By: | Andrea Ciaccio; Francesco Moscone; Elisa Tosetti |
| Abstract: | In this paper we investigate the causal impact of the European Union Emissions Trading System, a cap-and-trade scheme limiting greenhouse gas emissions of firms, on their environmental performance. Although previous studies have focused primarily on the effect of the emission cap imposed by the policy, we argue that the trading mechanism creates complex interdependencies among firms that can change the policy's intended effects. We develop a novel Difference-in-Differences approach that disentangles the direct causal effects of the scheme on regulated firms from the indirect spillover effects arising from trading among firms. By incorporating potential interference between treated units, our methodology allows a more comprehensive assessment of the policy's overall effectiveness. Monte Carlo simulations show that our proposed estimators perform well in finite samples, confirming the reliability of our approach. To assess the direct and indirect effects of the scheme, we construct a novel database on emissions of European industrial sites by matching information on treated plants from the European Commission's Community Independent Transaction Log with emission data from the European Pollutant Release and Transfer Register for the years from 2001 to 2017. We find that the scheme reduced emissions only for non-trading plants, but such reduction is entirely offset when accounting for spillovers from trading plants, thus suggesting that the trading mechanism neutralizes the environmental benefits of the policy. Our findings have important implications for the design of future environmental policies and the ongoing evaluation of cap and trade policies. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.15377 |
| By: | Zhang, Wenbei; Qiu, Feng |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:344062 |
| By: | Jan Baran (Narodowy Bank Polski; University of Warsaw); Patryk Czechowski (Narodowy Bank Polski); Jakub Mućk (Narodowy Bank Polski; Warsaw School of Economics) |
| Abstract: | In this paper we examine the role of the electromobility transformation for exports of the automotive sector. To do so, we propose a novel mapping of granular codes of automotive products into three categories: (i) combustion-specific, (ii) neutral, and (iii) electric-specific. We estimate a standard gravity model of the trade flows of automotive products, comparing the three categories with each other. We demonstrate that key drivers of export of the electric-specific products are similar to the combustion-specific ones. However, exports related to electric vehicles are more technologically intensive and supported by either a domestic R&D potential or international knowledge spillovers through FDI. In particular, export-oriented production of electric-specific intermediates proves to be to a large extent R&D intensive. Our results also suggest that the ongoing structural change in the automotive industry leads rather to intra-industry reorganization than to more fundamental restructuring of existing Global Value Chains. |
| Keywords: | automotive industry, international trade, gravity model of trade, structural change, electric vehicles, electromobility, Global Value Chains |
| JEL: | F14 L16 L62 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:nbp:nbpmis:379 |
| By: | Pike, Susie; Waechter, Maxwell |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewed academic literature and has detailed discussions of study selection and methodological issues. VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizes can be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effect sizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt303675p9 |
| By: | Agata Gałkiewicz (University of Potsdam, IAB, CEPA) |
| Abstract: | Random disturbances such as air pollution may affect cognitive performance, which, particularly in high-stakes settings, may have severe consequences for an individual’s productivity and well-being. This paper examines the short-term effects of air pollution on school leaving exam results in Poland. I exploit random variation in air pollution between the days on which exams are held across three consecutive school years. I aim to capture this random variation by including school and time fixed effects. The school-level panel data is drawn from a governmental program where air pollution is continuously measured in the schoolyard. This localized hourly air pollution measure is a unique feature of my study, which increases the precision of the estimated effects. In addition, using distant and aggregated air pollution measures allows me for the comparison of the estimates in space and time. The findings suggest that a one standard deviation increase in the concentration of particulate matter PM2.5 and PM10 decreases students’ exam scores by around 0.07–0.08 standard deviations. The magnitude and significance of these results depend on the location and timing of the air pollution readings, indicating the importance of the localized air pollution measure and the distinction between contemporaneous and lingering effects. Further, air pollution effects gradually increase in line with the quantiles of the exam score distribution, suggesting that high-ability students are more affected by the random disturbances caused by air pollution. |
| Keywords: | air pollution, particulate matter, education, cognitive performance, test scores, Poland |
| JEL: | I20 I21 I24 Q53 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:pot:cepadp:96 |
| By: | Nicol\'as Blampied; Alessia Cafferata; Marwil J. Davila-Fernandez |
| Abstract: | Can constantly comparing ourselves to others lead to overconsumption, ultimately increasing the ecological footprint? How do social comparisons shape green preferences over time? To answer these questions, we develop an environmental Overlapping Generations (OLG) model that explicitly accounts for Veblen effects and allows green preferences to be updated asynchronously, influenced by past environmental conditions and relative status considerations. We show that, along the optimal path, positional spending leads to overconsumption, which is detrimental to the environment. Taxing consumption is counterproductive as it does not directly address the social comparisons issue, leaving the problem unchanged. When the Veblenian mechanism is weak, the introduction of a materialistic ``secular trend'' -- that lowers the importance placed on the public good -- gives rise to two stable equilibria separated by a saddle: one in which agents care about environmental quality as much as consuming, and the other in which they derive utility solely from the latter. Studying the basins of attraction reveals that green investments are highly fragile. Our numerical experiments further indicated that, when Veblen effects are strong, the model depicts endogenous, persistent, aperiodic oscillations. In this case, green preferences fluctuate close to zero, and environmental quality is very low. Taken together, these findings suggest environmental vulnerability grows in parallel with status-driven consumption. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.16806 |
| By: | Stefano Carattini; Wade Davis; Béla Figge; Anton Heimerdinger |
| Abstract: | Rooftop solar photovoltaic mandates are becoming a popular policy across Europe and the United States. In this paper, we leverage the frontrunner experience of California to examine their economics. First, we evaluate the private payoffs of solar adoption for residential new construction. To do so, we assemble a rich dataset of new construction building projects and parameterize an engineering model to provide estimates of private payoffs across our sample. Second, we evaluate the hypothesis of what we call a "solar gap'' by comparing the cost-effectiveness estimates from the engineering model to observed builder decisions. We find substantial variation in the cost-effectiveness of solar across building locations and characteristics, though the estimated private payoffs are generally positive across a robust variety of model parameterizations and financial assumptions. We observe that the majority of buildings in our data do not adopt solar despite engineering estimates suggesting opportunities for positive payoffs. Relatedly, we find that payoffs explain little of the variation in solar adoption decisions. Lastly, we estimate the effectiveness of both San Francisco's citywide solar mandate and California's statewide mandate. Across a variety of empirical approaches, we find that both the citywide and statewide mandates increased solar adoption. However, new construction solar adoption remains below 100 percent. We discuss compliance accordingly. |
| Keywords: | solar photovoltaic, building codes, regulation, engineering models |
| JEL: | H70 Q42 Q48 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12359 |
| By: | Javier Ferri; Francisca Herranz-Báez |
| Abstract: | This paper analyzes the macroeconomic and distributional impacts of carbon pricing policies targeting both residential and non-residential sectors. Using a model that incorporates nominal price rigidities, sectoral labor adjustment, and financial frictions tied to housing collateral, we uncover critical transmission mechanisms affecting household welfare.Our analysis highlights the distinct effects on borrowers and lenders: carbon pricing in the non-residential sector reduces labor demand and wages, disproportionately impacting borrowers, while residential carbon pricing lowers housing prices, tightening credit constraints for borrowers but imposing higher welfare costs on lenders who own more housing assets. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:fda:fdaddt:2025-14 |
| By: | Pike, Susie |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewed academic literature and has detailed discussions of study selection and methodological issues. VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizes can be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effect sizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt0pm432rc |
| By: | Pike, Susie |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewed academic literature and has detailed discussions of study selection and methodological issues. VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizes can be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effect sizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt10m052z2 |
| By: | Bernd Bonfert (Aarhus University [Aarhus]); Helle Ørsted Nielsen (Aarhus University [Aarhus]); Anders Branth Pedersen (Aarhus University [Aarhus]) |
| Abstract: | Strategies for transforming capitalist economies often struggle with scaling up more socially just and ecologically sustainable alternatives. To avoid being stuck in a "local trap", many prefigurative initiatives form larger networks and coalitions. Agroecological practices, such as community-supported agriculture (CSA), have been especially expansive in recent years. However, since most scholarship on the growing CSA networks focuses primarily on their development and positive achievements, we learn little about their encountered challenges and their strategies for overcoming them. This article therefore investigates the causes and extent of "network failure", including barriers to collaboration and potential responses, among CSA networks in the UK and Germany. It draws on qualitative case studies, based on interviews, observation and document analysis. The article finds that CSA networks operate well at national and local level, but have experienced relative network failure at regional level, and encounter regular barriers to collaboration due to capacity limitations, differences and competition between members, all of which they are trying to address. |
| Keywords: | Green cities, Experimental governance, Local governance, Energy communities, Energy transition, Renewable energy |
| Date: | 2024–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05394859 |
| By: | Lee, Young Gwan; Elbakidze, Levan |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343835 |
| By: | Dang, Ruirui |
| Keywords: | Resource/Energy Economics and Policy, Environmental Economics and Policy, Community/Rural/Urban Development |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343840 |
| By: | Tehranchian, Amirmansour; Roudari, Soheil; Khabbaz, Seyedeh Mahsa |
| Abstract: | New technologies play an increasingly vital role in managing energy resources and enhancing environmental sustainability. Given the significant challenges posed by the use of non-renewable energy sources, it is essential to examine how technology can mitigate their consumption and promote ecological resilience. This study investigates the asymmetric effects of non-renewable energy consumption on ecological resilience through technological influence in Iran over the period 1990–2022, using the Threshold Structural Vector Autoregression (TSVAR) model. The results reveal a threshold of 0.171% for the growth rate of non-renewable energy consumption, beyond which the impact on ecological resilience differs substantially. The study finds that the ecological response varies depending on whether energy consumption is above or below this threshold. These findings underscore the importance of integrating advanced technologies and digital solutions into the energy sector. Policy implications include prioritizing technological innovation and smart energy systems to improve efficiency, reduce reliance on fossil fuels, and ultimately strengthen ecological resilience across multiple dimensions. |
| Keywords: | Energy consumption , Ecological resilience , Information and communications technology , TSVAR model |
| JEL: | Q35 Q50 |
| Date: | 2025–05–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:126834 |
| By: | Kurronen, Sanna |
| Abstract: | The study aims to identify economic measures that enhance support for climate change mitigation, particularly in oil-rich communities. Using US county-level data, the research shows that the presence of oil reserves is negatively associated with the attribution of human influence to climate change and policies regulating CO2 emissions. Interestingly, a high current dependence on mineral extraction is associated with greater support for climate policies, while a decline in the mining-income share in oil-rich regions does not correlate with increased support for climate action, underpinning our hypothesis of persistence of climate attitudes. This suggests that a region's current economic dependence on mining is not necessarily an obstacle to greater action to mitigate human impacts on climate. While evidence on the impact of extreme weather events on climate attitudes is mixed, we also present evidence that regional economic losses from natural disasters and rising home insurance costs may help convince people of the need for climate policy measures. |
| Keywords: | Climate Attitudes, Oil Wealth, Panel Data, United States |
| JEL: | Q35 Q54 C33 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bofitp:333961 |