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on Energy Economics |
| By: | Koichiro Ito |
| Abstract: | The global expansion of renewable energy is key to addressing climate change. After a decade of dramatic cost reductions—especially for solar photovoltaics and wind—renewables now approach cost parity with fossil generation. While this cost reduction has led to a steep increase in solar and wind power in several countries, the global share of solar and wind generation remains modest—approximately 15% as of 2023. This article reviews recent economic studies and identifies three central challenges and corresponding opportunities for scaling up renewable energy—underdeveloped regulatory and market design, insufficient intertemporal market integration, and inadequate spatial market integration. The insights from this review highlight effective ways to accelerate the global transition to renewable energy. |
| JEL: | Q40 Q50 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34644 |
| By: | Bekele, Rahel Deribe; Jeuland, Marc; Munson, Dylan |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361128 |
| By: | Tankwa, Brendon; Ravigné, Emilien (The Institute for New Economic Thinking at the Oxford Martin School, University of Oxford); Farmer, J. Doyne |
| Abstract: | We study how climate policies shaped solar and wind deployment in 49 OECD+ countries from 1990 to 2023. Combining capacity data with policy stringency from the OECD Climate Actions and Policies Measurement Framework, we estimate event-study difference-in-differences models for diffusion speed (the annual growth rate of log installed capacity) around policy onsets and strengthenings, and embed these responses in an S-curve framework to map growth-rate changes into counterfactual capacity paths. Three findings stand out. First, policy design and timing matter more than simple presence: positive feed in tariff (price and duration) reforms and renewable expansion planning reliably accelerate deployment, while carbon pricing, emissions trading systems, and renewable portfolio standards do not show robust short-run effects; coal exit measures yield delayed gains, mainly for solar. Second, policy-induced increases in growth rates are transient but cumulate into level differences: relative to a no-policy diffusion baseline, the policy bundle roughly doubles solar capacity and increases wind capacity by about 30 percent, with feed-in tariffs and renewable expansion planning accounting for most of this boost. Significant cross-country heterogeneity exists in total policy-induced boosts, along with a moderate correlation between solar and wind outcomes. Third, effectiveness depends on the stage of diffusion and on technology: well-designed deployment support introduced at low penetration delivers much larger proportional gains than the same instruments implemented later, and solar is more policy-sensitive than wind. The results imply that policy portfolios aimed at rapid decarbonisation should prioritise early, credible deployment support tailored to technology and system constraints, rather than economy-wide pricing instruments. |
| Keywords: | Technology diffusion, solar/wind adoption, Policy Impacts, Feed-in-Tariffs, Grid integration, Coal phase-out, Auctions |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:amz:wpaper:2026-01 |
| By: | Bryan K. Bollinger; Kenneth Gillingham; A. Justin Kirkpatrick |
| Abstract: | Prosocial behavior plays a role in many economic contexts, and it has been explained by altruism, social pressure, signaling, and expectations of fairness and reciprocity. We examine prosocial behavior in a context that allows us to distinguish the role of self-signaling and social signaling from alternative explanations, including warm glow. Our context is residential solar, and self-signaling is separately identified from social signaling by the exogenous visibility of potential solar arrays. We show that the political affiliation of proximate peers influences the extent of self-signaling and is crowded out by the private benefits of installing solar. |
| JEL: | D64 H41 Q40 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34652 |
| By: | Pates, Nicholas J; Ramsey, Steven M. |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361212 |
| By: | Flandoli, Franco; Leocata, Marta; Livieri, Giulia; Morlacchi, Silvia; Corvino, Fausto; Pirni, Alberto |
| Abstract: | This paper develops two mathematical models to understand subjects’ behavior in response to the urgency of a change and inputs from governments e.g., (subsides) in the context of the diffusion of the solar photovoltaic in Italy. The first model is a Markov model of interacting particle systems. The second one, instead, is a MeanField Game model. In both cases, we derive the scaling limit deterministic dynamics, and we compare the latter to the Italian solar photovoltaic data. We identify periods where the first model describes the behavior of domestic data well and a period where the second model captures a particular feature of data corresponding to companies. The comprehensive analysis, integrated with a philosophical inquiry focusing on the conceptual vocabulary and correlative implications, leads to the formulation of hypotheses about the efficacy of different forms of governmental subsidies. |
| Keywords: | green energy transition; individual based modeling; Markov model; mean-field games; procrastination; solar photovoltaic |
| JEL: | C1 |
| Date: | 2025–07–29 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:129077 |
| By: | Rielli, L. E.; Wang, Jodi Ann |
| Abstract: | Ensuring that the energy transition actively accounts for stakeholders' concerns is critical to both addressing and redressing (in)justices. From an energy justice perspective, key aspects – including distributive, procedural, recognitional, and restorative justice – must be duly inscribed across the lifecycles of new renewable energy infrastructures. This article aims to identify the salient stakeholder concerns and propose corresponding policy actions that embed justice principles in the energy transition. It particularly emphasizes on the implications for affected stakeholders groups, namely workers, suppliers, communities, and consumers. Drawing on evidence from ethnographic field observations and semi-structured interviews (n = 47) in solar photovoltaic energy projects in Brazil and Portugal, this Perspective article proposes a framework of structural and practical policy actions that centre the affected stakeholders' concerns, which can be adapted across global geographies. This work contributes to the just energy transitions global agenda by providing practical recommendations for integrating justice into energy policies. |
| Keywords: | energy justice; energy transition; policy; Policy; Energy justice; Energy transition |
| JEL: | R14 J01 |
| Date: | 2026–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130918 |
| By: | Cha, Min-kyeong (Min); Matisoff, Daniel |
| Abstract: | How does electricity consumption behavior change with different energy sources? We seek to understand how consumers change their consumption behaviors when they begin to use renewable electricity via a community solar program. Previous research has found that consumers distinguish the power sources of electricity and even change their consumption behavior. Recent studies have explored changes in consumption associated with utility-run green electricity programs and rooftop solar, finding mixed results; however, studies on community solar programs are lacking. This study explores household-level consumption behavior after adopting solar electricity without panel installation. We use household-level monthly electricity consumption data from a large electric co-op in Georgia, U.S., ranging from 2015 to 2023, for both community solar subscribers and non-subscribers. We use staggered difference-in-differences, along with matching, to compare consumption changes before and after the subscription. Findings reveal that the consumption does not change after subscription, but subscribers' monthly bills increase by about 3–4 %, indicating they pay more to make the grid greener. This study will broaden the understanding of electricity sources and consumer behavior by adding the analysis of prevalent but under-studied community solar electricity programs in the U.S. Southeast context. It will help utility planners understand the changing demand as a result of renewable energy adoption. |
| Keywords: | community solar; electricity consumption behavior; equity in renewable energy; solar electricity |
| JEL: | J1 |
| Date: | 2026–01–31 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:130888 |
| By: | Ben Youssef, Slim |
| Abstract: | This paper evaluates the long-run impact of fuel ethanol production, exports of crops and livestock, and the asymmetric impact of temperature change on the forest area in Brazil. We use the non-linear autoregressive distributed lag model and annual data between 1990 and 2022. An increase in ethanol production or in exports of crops and livestock importantly reduces the forest area in Brazil, in the long-run. We demonstrate that while positive temperature change does reduce forest area in the long-run, falling temperatures do not guarantee the regeneration of lost forests. A temperature change increase of 1°C leads in the long term to a significant and very worrying reduction in the forest area of Brazil, of almost 9.8%. Some policy recommendations are drawn: i) To reduce GHG emissions, Brazil should encourage R&D and innovation in energy efficiency and renewable energy (e.g., solar, wave), especially in second-generation or third-generation biofuels production, through appropriate competitive credits and subsidies; ii) Brazil should encourage agricultural research to increase agricultural yields and the use of aeroponics for vegetable culture or smart agriculture, because this will lead to less pressure on agricultural lands and therefore on deforestation; iii) A strategy to preserve or even to recover the Brazilian Amazon forest should be established combined with a strategy for developing green tourism. |
| Keywords: | Forest area; Temperature change; Ethanol production; Exports of crops and livestock; Non-linear autoregressive distributed lag; Brazil. |
| JEL: | C22 F18 O13 O54 Q15 Q23 Q54 |
| Date: | 2025–12–07 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127224 |
| By: | Moon, Jineon; Chandio, Rabail; Feng, Hongli |
| Abstract: | While wind turbines have been rapidly increasing across the United States, especially in Iowa, empirical research on how they would change the underlying or nearby farmland values is limited. We estimate the impact of wind turbines on farmland prices in various aspects, including their varying effects by time and proximity, based on the hedonic approach. Leveraging the detailed farmland transactions and wind turbines data across Iowa, several findings are observed. First, wind turbines increase the per-acre price of the underlying farmlands by 13.5 percent between 2012 to 2019, while the effect becomes insignificant after 2020. Next, the price of farmlands near wind turbines is estimated not to be affected by the turbines. Last, while the total generation capacity of wind turbines increases the price of underlying farmland, the turbines’ age has no significant impact on farmland prices. |
| Keywords: | Agricultural Finance, Farm Management |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360672 |
| By: | Paula Sofia Castro Acevedo (DISP - Décision et Information pour les Systèmes de Production - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées); Yenny A. Paredes-Astudillo (DISP - Décision et Information pour les Systèmes de Production - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées); Lorraine Trilling (DISP - Décision et Information pour les Systèmes de Production - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées); Anne-Laure Ladier (DISP - Décision et Information pour les Systèmes de Production - UL2 - Université Lumière - Lyon 2 - UCBL - Université Claude Bernard Lyon 1 - Université de Lyon - INSA Lyon - Institut National des Sciences Appliquées de Lyon - Université de Lyon - INSA - Institut National des Sciences Appliquées) |
| Abstract: | La diversification des sources énergétiques en Europe est devenue une nécessité stratégique, notamment en raison de la diminution des importations de gaz liée à la situation géopolitique actuelle [2]. Dans ce contexte, le biogaz constitue une alternative durable au gaz naturel. Issu de la fermentation anaérobie des déchets organiques dans un digesteur, le biogaz est un mélange gazeux principalement composé de méthane. Son épuration permet d'obtenir du biométhane, un gaz aux propriétés comparables à celles du gaz naturel, pouvant être injecté dans le réseau de distribution ou utilisé comme carburant. Bien que le biométhane constitue une source d'énergie permettant de répondre aux besoins croissants en gaz en Europe, la mise en place des infrastructures d'épuration nécessaires à sa production demeure un processus intrinsèquement complexe, long et coûteux. Ce processus requiert le déploiement d'une structure multi-niveaux, issue de l'ensemble des activités spécialisées impliquées dans la conception, la production et l'installation de ces plateformes. Ces caractéristiques accentuent la complexité de la gestion des flux de matières et d'informations, tout en augmentant la vulnérabilité du système. Dans ce cadre, nous développons une approche de modélisation et d'optimisation de la chaîne d'approvisionnement pour la fabrication et l'assemblage des épurateurs de biogaz afin de garantir la capacité du système à absorber l'augmentation de la demande grâce au concept de montée en cadence (ramp-up) de la chaîne d'approvisionnement, tout en assurant sa résilience face aux fluctuations du marché et aux perturbations potentielles. Ce travail s'appuie sur l'étude d'un cas spécifique d'une chaîne d'approvisionnement située dans la vallée du Rhône, en France. |
| Keywords: | Épurateur de biogaz, Programmation linéaire, Montée en charge, Chaîne logistique, Chaîne d'approvisionnement multi-niveaux |
| Date: | 2025–05–21 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05351395 |
| By: | Nicolas Astier; Frank A. Wolak |
| Abstract: | Nuclear and intermittent renewables (wind and solar) are generally regarded as the only scalable technologies producing low-carbon electricity. However, the extent to which these technologies can co-exist in a reliable power system depends on whether nuclear units can adjust their operations to renewable output fluctuations. Using hourly data from the French power system, we find that nuclear units are operated quite flexibly, and that the foregone energy production due to “load following” actions (relative to the counterfactual of operating at full capacity during load following events) is currently limited. However, we find that an additional load following event is associated with a slightly higher likelihood of a unit failure. We also find that unit-level minimum output constraints are binding more frequently as system-wide renewable generation increases, especially so for units most exposed to solar generation. In 2024, hours during which available nuclear flexibility was exhausted are associated with non-positive hourly day-ahead prices. |
| JEL: | L94 Q2 Q42 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34662 |
| By: | Gong, Ziqian; Shaw, Brooke; Martin, Gray D.; Petruas, Jeff; Ohrel, Sara; Marie, Lewis |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361218 |
| By: | Zenghui, Chao; Zhang, Jing; Chen, Kelin; Zhang, Jun |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360661 |
| By: | Humberto Llavador; John Roemer; Thomas Stoerk |
| Abstract: | The Paris Agreement is designed to increase climate ambition gradually through a process of ratcheting up. What is the plausible endpoint of this process? We develop a tractable integrated assessment model in which countries interact through a decentralized general equilibrium and negotiate unanimously over a global carbon budget, with all mitigation implemented via a global carbon price. We prove existence and uniqueness of a unanimous international agreement on global emissions, in which carbon pricing revenues are redistributed across countries in proportion to marginal climate damages. In a quantitative application for 154 countries, the resulting equilibrium limits global mean surface temperature change to 1.51◦C, at a carbon price of 320 USD/tCO2. The associated international transfers of carbon pricing revenue are progressive toward lower-income countries and amount to about 0.8% of global GDP annually - an order of magnitude larger than the Paris Agreement’s climate finance target. |
| Keywords: | Paris Agreement, climate policy, international environmental agreement, climate economics |
| JEL: | Q54 Q56 Q58 F35 F53 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:upf:upfgen:1935 |
| By: | Joseph Nyangon; Brecht Seifi |
| Abstract: | The global carbon market is fragmented and characterized by limited pricing transparency and empirical evidence, creating challenges for investors and policymakers in identifying carbon management opportunities. The European Union is among several regions that have implemented emissions pricing through an Emissions Trading System (EU ETS). While the EU ETS has contributed to emissions reductions, it has also raised concerns related to international competitiveness and carbon leakage, particularly given the strong integration of EU industries into global value chains. To address these challenges, the European Commission proposed the Carbon Border Adjustment Mechanism (CBAM) in 2021. CBAM is designed to operate alongside the EU ETS by applying a carbon price to selected imported goods, thereby aligning carbon costs between domestic and foreign producers. It will gradually replace existing carbon leakage mitigation measures, including the allocation of free allowances under the EU ETS. The initial scope of CBAM covers electricity, cement, fertilizer, aluminium, iron, and steel. As climate policies intensify under the Paris Agreement, CBAM-like mechanisms are expected to play an increasingly important role in managing carbon-related trade risks and supporting the transition to net zero emissions. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2601.05490 |
| By: | Ahmed S. Alahmed; Audun Botterud; Saurabh Amin; Ali T. Al-Awami |
| Abstract: | We develop a mathematical framework for the optimal dispatch of flexible water desalination plants (WDPs) as hybrid generator-load resources. WDPs integrate thermal generation, membrane-based controllable loads, and renewable energy sources, offering unique operational flexibility for power system operations. They can simultaneously participate in two markets: selling desalinated water to a water utility, and bidirectionally transacting electricity with the grid based on their net electricity demand. We formulate the dispatch decision problem of a profit-maximizing WDP, capturing operational, technological, and market-based coupling between water and electricity flows. The threshold-based structure we derive provides computationally tractable coordination suitable for large-scale deployment, offering operational insights into how thermal generation and membrane-based loads complementarily provide continuous bidirectional flexibility. The thresholds are analytically characterized in closed form as explicit functions of technology and tariff parameters. We examine how small changes in the exogenous tariff and technology parameters affect the WDP's profit. Extensive simulations illustrate the optimal WDP's operation, profit, and water-electricity exchange, demonstrating significant improvements relative to benchmark algorithms. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2601.02243 |
| By: | Tang, Junxian; Zhang, Ruohao; Lei, Zhen; Wan, Xibo; Hu, Xianbiao |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361222 |
| By: | Shigeharu Okajima (Department of Economics, Osaka University of Economics. 2-2-8, Osumi, Higashiyodogawa-ku, Osaka, 533-8533, Japan.); Hiroko Okajima (School of Economics, Nagoya University. Furo-cho, Chikusa-ku, Nagoya, 464-8601, Japan.); Yoshito Nakayama (Department of Economics, Osaka University of Economics. 2-2-8, Osumi, Higashiyodogawa-ku, Osaka, 533-8533, Japan.) |
| Abstract: | This study quantitatively assesses the negative externalities of geothermal power plants by analyzing their impact on local land values in Japan. Using a hedonic pricing approach and a difference-in- differences framework, the analysis finds that land prices within a 2 km radius of a geothermal power plant declined by approximately 7% to 12% after their installation, even after accounting for various fixed effects and robustness checks. The study utilizes data on all 28 large-scale geothermal power plants with a capacity of at least 1, 000 kilowatts that were operational in Japan as of 2018, covering a 42-year period from 1983 to 2024. The findings highlight the complex interplay between renewable energy expansion and local economic conditions, emphasizing the need to balance the benefits of clean energy with local stakeholders’ concerns to ensure a sustainable energy transition in Japan. |
| Keywords: | renewable energy, geothermal power, hedonic analysis, negative externality |
| JEL: | Q24 Q42 Q51 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:was:dpaper:2505 |
| By: | Jérôme Hambye-Verbrugghen (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Stefano Bianchini (BETA - Bureau d'Économie Théorique et Appliquée - AgroParisTech - UNISTRA - Université de Strasbourg - Université de Haute-Alsace (UHA) - Université de Haute-Alsace (UHA) Mulhouse - Colmar - UL - Université de Lorraine - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); Paul E Brockway (SEE - School of Earth and Environment [Leeds] - University of Leeds); Emmanuel Aramendia (SEE - School of Earth and Environment [Leeds] - University of Leeds); Matthew K Heun (SEE - School of Earth and Environment [Leeds] - University of Leeds, Calvin University [Grand Rapids], SU - Stellenbosch University); Zeke Marshall (SEE - School of Earth and Environment [Leeds] - University of Leeds) |
| Abstract: | This paper evaluates the potential of digitalisation to drive structural transformations towards a sustainable economy. We apply an index decomposition analysis (IDA) to understand the factors influencing energy demand in a panel of 31 high-income countries (1971-2019). The IDA framework includes four factors related to the scale and sectoral composition of the economy and technical improvements, accounting for the quality of energy flows and actual work potential through useful exergy measures. We apply the model at the sector level across 16 productive industries to explore cross-sector heterogeneity in energy demand, and then compare results across digitial intensity categories. We find that value added growth is the primary driver of energy use. While digitalisation alone does not fully explain trends in energy demand, it is strongly associated with value added growth in high digital intensity sectors and amplifies the use of energy. Left ungoverned, digitalisation risks intensifying economic-ecological tensions, but if steered towards socioecological priorities-while addressing the environmental costs of growth-it holds potential to deliver real benefits. We discuss these findings in the context of recent policy actions promoting the ''twin" green and digital transition. |
| Keywords: | Technological change, Structural change, Digitalisation, Energy efficiency, Energy |
| Date: | 2025–09–08 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05460038 |
| By: | Dante Amengual (CEMFI, Centro de Estudios Monetarios y Financieros); Gabriele Fiorentini (Università di Firenze and RCEA); Enrique Sentana (CEMFI, Centro de Estudios Monetarios y Financieros) |
| Abstract: | We propose specification tests for Gaussian SVAR models identified with short- and long-run restrictions that assess the theoretical justification of the chosen identification scheme by checking the independence of the structural shocks. We consider both moment tests that focus on their coskewness and cokurtosis and contingency table tests with discrete and continuous grids. Our simulations confirm the finite sample reliability of resampling versions of our proposals, and their power against interesting alternatives. We also apply them to two influential studies: Kilian (2009) with short-run restrictions in oil markets and Blanchard and Quah (1989) with long-run ones for the aggregate economy. |
| Keywords: | Consistent test, coskewness, cokurtosis, independence test, moment tests, oil market, pseudo maximum likelihood estimators, supply and demand shocks. |
| JEL: | C32 C52 E32 Q41 Q43 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:cmf:wpaper:wp2025_2532 |
| By: | Ren, Lifeng; Woodhouse, Elliott; Johnson, Justin; Leclère, David; Wögerer, Michael; Wong, Christopher |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360804 |
| By: | Tenbrock, Sebastian; Wernick, Christian; Gries, Christin-Isabel |
| Abstract: | Die Erfassung und Berechnung der indirekten Treibhausgasemissionen entlang der gesamten Wertschöpfungskette (Scope 3-Emissionen) stellt Telekommunikationsunternehmen in der Praxis der Berichterstattung vor besondere Herausforderungen. Die Studie untersucht, wie TK-Anbieter ihre Scope-3-Emissionen entlang ihrer vor- und nachgelagerten Wertschöpfungsketten erfassen. Dabei wurden die Nachhaltigkeitsberichte von 16 europäischen, börsennotierten TK-Anbietern ausgewertet und Expertengespräche mit 15 Vertretern von Telekommunikationsanbietern, Verbänden und Stadtwerken in Deutschland geführt. Scope 3 machen in der TK-Branche den größten Anteil an den Gesamtemissionen aus, insbesondere solche Emissionen, die im Zusammenhang mit eingekauften Gütern und Dienstleistungen und Kapitalgütern sowie bei der Nutzung der verkauften Produkte durch gewerbliche und private Endkunden entstehen. Diese drei Scope 3-Kategorien dominieren bei allen betrachteten europäischen und deutschen Anbietern und zeigen, dass die zentralen Emissionstreiber branchenweit vergleichbar sind. Gleichzeitig zeigt die Untersuchung, dass die Erfassung von Scope 3 aufgrund der Komplexität, kleinteiliger Strukturen und Prozesse sowie begrenzter Datenverfügbarkeit ungenau und mit Unsicherheiten behaftet ist. Hinzu kommt, dass die verschiedenen möglichen Reportingansätze z.T. stark voneinander abweichende Ergebnisse generieren. Die meisten Unternehmen haben in den letzten Jahren ihr Reporting deutlich ausgeweitet, sowohl was die umfassten Kategorien als auch die Detailtiefe innerhalb der Kategorien angeht. Im Ergebnis haben diese beiden Aspekte zur Folge, dass eine Vergleichbarkeit sowohl im Zeitablauf auf Unternehmensebene als auch zwischen den berichtenden Unternehmen nur eingeschränkt möglich ist. Branchenweite Best Practices werden bislang nur punktuell umgesetzt. Die Entwicklung gemeinsamer Ansätze hängt dabei auch von der Größe der TK-Anbieter ab. Während kleinere Unternehmen vor allem in projektbasierten Verbandsformaten kooperieren, entwickeln größere multinational tätige Anbieter in internationalen Initiativen gemeinsame Standards weiter. Insgesamt verfügen größere Unternehmen über mehr Ressourcen und sind in der Lage, ihre Zulieferer stärker zur Mitwirkung beim Reporting und zur Umsetzung von Nachhaltigkeitszielen zu verpflichten. Bis zu den Änderungen des europäischen Rechtsrahmens im Zuge der CSRD- und EU-Omnibus-Initiative bestand bei kleineren Anbietern Unsicherheit darüber, ob und wenn ja ab wann, sie einer Verpflichtung zur Nachhaltigkeitsberichterstattung unterliegen werden. Diese Unsicherheit ist durch die Verabschiedung der Trilog-Einigung weitgehend beseitigt worden. Bei den Unternehmen, die wider Erwarten doch nicht der Berichtspflicht unterliegen werden, steht nun allerdings zu erwarten, dass das Thema Nachhaltigkeit und Nachhaltigkeitsberichterstattung deutlich an Relevanz verlieren wird. |
| Abstract: | The collection and calculation of indirect greenhouse gas emissions along the entire value chain (Scope 3 emissions) pose particular challenges for telecommunications companies in their reporting practices. The study examines how telecommunications providers record their Scope 3 emissions along their upstream and downstream value chains. The sustainability reports of 16 European, publicly traded telecommunications providers were evaluated, and expert discussions were held with 15 representatives of telecommunications providers, associations, and municipal utilities in Germany. Scope 3 emissions account for the largest share of total emissions in the telecommunications industry, particularly emissions from purchased goods and services, capital goods, and the use of sold products by commercial and private end customers. These three Scope 3 categories dominate among all European and German providers considered and show that the key emission drivers are comparable across the industry. At the same time, the study shows that the recording of Scope 3 is inaccurate and subject to uncertainty due to its complexity, fragmented structures and processes, and limited data availability. In addition, the various possible reporting approaches sometimes generate widely differing results. Most companies have significantly expanded their reporting in recent years, both in terms of the categories covered and the level of detail within the categories. As a result, these two aspects mean that comparability is only possible to a limited extent, both over time at the company level and between the reporting companies. Industry-wide best practices have so far only been implemented selectively. The development of common approaches also depends on the size of the telecommunications providers. While smaller companies cooperate primarily in project-based association formats, larger multinational providers continue to develop common standards in international initiatives. Overall, larger companies have more resources and are in a position to oblige their suppliers to cooperate more closely in reporting and implementing sustainability goals. Until the changes to the European legal framework in the wake of the CSRD and EU Omnibus Initiative, there had been uncertainty among smaller providers as to whether, and if so when, they would be subject to sustainability reporting requirements. This uncertainty has been largely removed with the adoption of the trilogue agreement. For companies that, contrary to expectations, will not be subject to reporting requirements, it is to be expected that the topic of sustainability and sustainability reporting will become significantly less relevant. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:334506 |
| By: | Zhu, Mingying; Chen, Bo; Hu, Zhiren; Du, Wei |
| Abstract: | This paper investigates whether productivity growth in the service sector can improve environmental quality. Using the expansion of China's national 5A-level tourist attraction list as a natural experiment, we find that when a city obtains its first nationally recognized "best" tourist attraction, the PM2.5 concentration declines by about 5.1% over the following decade. The improvement in air quality is driven by structural transformation resulting from the reallocation of capital and labor toward the service sector, rather than strengthened environmental regulations. The air quality improvement generated an additional USD 3.1 billion in revenue for China's tourism sector over the decade. |
| Keywords: | Community/Rural/Urban Development |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360758 |
| By: | Anna Alberini; Javier Bas; Cinzia Cirillo |
| Abstract: | We devise a difference-in-difference study design to assess the impact of fare-free bus service in Alexandria, located in the Washington, DC metro area. Our surveys show modest to no effect, with at most 6% more residents in Alexandria increasing their bus usage compared to control locations. We find no effect on ground-level ozone or road crashes, suggesting little to no impact on road traffic. One-third of respondents in control locations indicated they would use buses more frequently if fare-free service were available in their areas. Based on the respondent-reported reductions in car miles, the program led to a reduction of 0.294 to 0.494 tons of CO2 per year, or 5% to 9% of the average annual emissions from a US car, at a cost of $70-$120 per ton of CO2. We predict a CO2 reduction of 0.454 tons per year, equivalent to 8% of the average US car's annual emissions if the fare-free bus covered all of the study areas. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2601.02190 |
| By: | Robert D. Metcalfe; Andrew Schein; Cohen R. Simpson; Yixin Sun |
| Abstract: | One of the promising opportunities offered by AI to support the decarbonization of electricity grids is to align demand with low-carbon supply. We evaluated the effects of one of the world’s largest AI managed EV charging tariffs (a retail electricity pricing plan) using a large-scale natural field experiment. The tariff dynamically controlled vehicle charging to follow real-time wholesale electricity prices and coordinate and optimize charging for the grid and the consumer through AI. We randomized financial incentives to encourage enrollment onto the tariff. Over more than a year, we found that the tariff led to a 42% reduction in household electricity demand during peak hours, with 100% of this demand shifted to lower-cost and lower-carbon-intensity periods. The tariff generated substantial consumer savings, while demonstrating potential to lower producer costs, energy system costs, and carbon emissions through significant load shifting. Overrides of the AI algorithm were low, suggesting that this tariff was likely more efficient than a real-time-pricing tariff without AI, given our theoretical framework. We found similar plug-in and override behavior in several markets, including the UK, US, Germany, and Spain, implying the potential for comparable demand and welfare effects. Our findings highlight the potential for scalable AI managed charging and its substantial welfare gains for the electricity system and society. We also show that experimental estimates differed meaningfully from those obtained via non-randomized difference-in-differences analysis, due to differences in the samples in the two evaluation strategies, although we can reconcile the estimates with observables. |
| JEL: | Q4 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34709 |
| By: | Fornari, Fabio; Zaghini, Andrea; Pianeselli, Daniele |
| Abstract: | We provide empirical evidence that the pricing of green bonds tends to be highly sophisticated and based on a two-tiered approach. When buying a green bond, investors do not look only at the presence of a green label, but also consider additional characteristics of the bond that involve the environmental score of the issuer and the soundness of the underlying project. By comparing the yields at issuance of green bonds to those of a matched control sample of conventional bonds, our baseline specification identifies a premium of 16 basis points for the green label alone. Furthermore, when the environmental score of the issuer is in the top tercile of the cross-sectional distribution of such an indicator across the analyzed issuers, the greenium nearly doubles. Green certification and periods of heightened climate uncertainty also significantly affect the size of the greenium. JEL Classification: G12, G15, C21, C58, Q56 |
| Keywords: | corporate bonds, ESG scores, green bonds, greenium, sustainable finance |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:ecb:ecbwps:20263176 |
| By: | Antonio Colomer; Óscar Arnedillo; Marcelo Rabinovich; Diego Rodríguez; Jorge Sanz |
| Abstract: | El Plan Nacional Integrado de Energía y Clima (PNIEC) contiene los objetivos comprometidos por España en el decenio 2021-2030 para la reducción de emisiones de gases de efecto invernadero, el aumento de la penetración de renovables y la reducción del consumo y la dependencia energética, así como un amplio conjunto de medidas que se desean implementar para el cumplimiento de esos objetivos. La primera versión del PNIEC es del año 2019 si bien, siguiendo lo establecido en el Reglamento de Gobernanza de la Unión de la Energía y el Clima, fue actualizada en 2024. En este trabajo, todas las referencias al PNIEC se hacen con respecto a esa versión actualizada1. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:fda:fdaeee:eee2026-02 |
| By: | Dong, Caroline Y.; McCarl, Bruce A.; Jones, Jason P.H.; Pierce, Anna; Fei, Chengcheng J. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360786 |
| By: | Ou, Yunbei; Bailey, Nick (University of Glasgow); McArthur, David Philip; Zhao, Qunshan |
| Abstract: | An extensive literature shows a positive relationship between housing energy efficiency and house prices. However, the methodological issue of omitted variable bias (OVB) has weakened claims of a causal effect. It is also unclear whether any willingness-to-pay (WTP) for housing energy efficiency reflects a concern with energy costs or a more symbolic ‘green’ consumption. The recent exogenous shock of the global ‘energy crisis’ in 2022 offers a novel opportunity to examine both. If WTP changes significantly after the energy crisis, it effectively removes OVB issues and strengthens causal interpretations. It could also indicate that WTP for energy efficiency is driven (at least in part) by energy cost savings. Using over 170, 000 listings for second-hand house sales in Greater Manchester, UK (2017-24), we model WTP for energy efficiency before and after the dramatic rise in energy prices using multilevel hedonic regressions. We find that WTP for more energy efficient homes increased after the energy crisis, largely because the ‘brown discount’ (penalty) for more inefficient homes increased. These results confirm the causal interpretation of the relationship between house prices and energy efficiency and indicate that consumers are motivated at least in part by energy cost savings. These findings suggest that policymakers could promote housing energy efficiency by focussing on financial benefits in policy design and advertisements, as well as support financially vulnerable households to ensure an equal sustainable housing transition process. |
| Date: | 2026–01–07 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:m5d7n_v2 |
| By: | Albores, Isaac |
| Abstract: | This study examines the return and volatility spillovers, as well as tail-risk dynamics, between energy and agricultural commodity markets by analyzing the quantile connectedness of a system comprising key agricultural and energy commodities under extreme market conditions. We utilize a quantile vector autoregression (QVAR) model to show differences in the total connectedness index across varying market conditions and across time. Our findings show asymmetric returns spillovers between the commodities of interest, showing distinct risk transmission effects. In extreme market conditions, both bullish and bearish, we found the network connectivity of returns to be significantly stronger than under the median quantile, which represents normal market conditions. We also find under extreme scenarios, energy commodity markets tend to be more net transmitters, while the energy markets are net receivers of shocks. Our findings have implications for investors in risk management and portfolio diversification, as well as policymakers looking to manage commodity risk. |
| Keywords: | Risk and Uncertainty |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360695 |
| By: | Hormigos Feliu Clara (European Commission - JRC); Florio Pietro (European Commission - JRC); Dijkstra Lewis (European Commission - JRC); Auteri Davide (European Commission - JRC); Bertozzi Cecilia (European Commission - JRC) |
| Abstract: | In its initiative towards more resilient rural areas, the EU’s Long-Term Vision for Rural Areas underlines the need to fund building renovation in rural areas, boost local renewable energy production and reduce energy poverty. In this policy brief, we look at the EU’s territories, and especially its rural areas, through these two connected perspectives: energy poverty and energy needs in the building stock. Data on thermal comfort, economic strain and dwelling energy efficiency indicates that rural areas in the EU could face higher levels of energy poverty compared to urban areas, especially in Bulgaria, Romania and Greece. On the other hand, rural areas are leading in renovations, with 29% of rural residents living in dwellings that improved their energy efficiency in recent years. A mostly low-rise rural building stock with large volumes per inhabitant, however, poses challenges for energy efficiency and needs in rural areas. In this context, rural areas stand to benefit substantially from rooftop photovoltaic development, aided by larger roof areas per inhabitant and a large share of rural ownership (78% of owned dwellings). With extensive rooftop PV adoption, rural areas could potentially produce 2 200 kWh/inhabitant annually, 38% more than the average household electricity consumption in the EU. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc145097 |
| By: | Antoine Bouët; Lionel Fontagné; Christophe Gouel; Houssein Guimbard; Cristina Mitaritonna |
| Abstract: | MIRAGE is a multi-region, multi-sector computable general equilibrium (CGE) model, initially devoted to trade policy analysis and more recently applied to long-term growth and environmental issues. It incorporates energy, carbon pricing, imperfect competition, and rigid investment allocation, in a sequential dynamic setup where installed capital is assumed to be immobile. The model provides trade analysis with detailed treatment of trade costs and Armington specifications, drawing upon a detailed measure of trade barriers through the MAcMap-HS6 database. Production features nested CES functions with capital-energy bundles under both perfect and imperfect competition frameworks, while final demand follows a LES-CES utility function. The sequential dynamic framework enables longterm simulations by combining total factor productivity calibration with macroeconomic projections from the MaGE model. The most recent version offers significant improvements in electricity sector modeling with renewable energy representation, base-load and peak-load dinstinctions, and detailed greenhouse gas (GHG) emissions accounting with carbon market mechanisms. This documentation provides complete technical specifications, calibration procedures, and implementation guidelines for researchers and policymakers using MIRAGE for economic policy analysis. |
| Keywords: | Computable General Equilibrium;Trade Policy;Environnemental Policy |
| JEL: | C68 F1 Q54 Q56 Q40 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepidt:2026-01 |
| By: | Millend Roy; Agostino Capponi; Vladimir Pyltsov; Yinbo Hu; Vijay Modi |
| Abstract: | Electricity markets are under increasing pressure to maintain reliability amidst rising renewable penetration, demand variability, and occasional price shocks. Traditional capacity market designs often fall short in addressing this by relying on expected-value metrics of energy unserved, which overlook risk exposure in such systems. In this work, we present CapOptix, a capacity pricing framework that interprets capacity commitments as reliability options, i.e., financial derivatives of wholesale electricity prices. CapOptix characterizes the capacity premia charged by accounting for structural price shifts modeled by the Markov Regime Switching Process. We apply the framework to historical price data from multiple electricity markets and compare the resulting premium ranges with existing capacity remuneration mechanisms. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.12871 |
| By: | Ngueuleweu Tiwang Gildas |
| Abstract: | Understanding how climate and innovation policies perform during socio-technical transitions remains a central challenge in innovation studies. Empirical analyses of the relationship between economic growth and carbon emissions continue to yield conflicting results, partly because they rely on pooled models that implicitly assume stable and homogeneous dynamics. Transition theory, by contrast, emphasizes that decarbonization unfolds through heterogeneous regimes characterized by varying degrees of stability, inertia, and reconfiguration. Yet, empirical tools capable of identifying these regimes prior to policy evaluation or forecasting remain limited. This paper introduces a regime-diagnostic framework designed to condition empirical analysis on the structural state of the climate-economy system. Rather than estimating causal effects or generating forecasts directly, the framework reconstructs latent transition regimes from the time varying responsiveness of emissions to economic activity. These diagnostics are used as a pre-modeling step, allowing econometric and machine learning tools to be applied conditionally on empirically identified regimes. Using a global panel of approximately 150 countries over the period 1991-2022, we apply the framework to the emission-growth relationship. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2601.01545 |
| By: | Zuloaga, Gonzalo; Plückebaum, Thomas; Kulenkampff, Gabriele; Ockenfels, Martin |
| Abstract: | Mobilfunknetze müssen sich immer wieder veränderten Nutzungsbedürfnissen anpassen, da sie mit knappen Frequenzressourcen arbeiten. Im Vordergrund steht dabei primär das ständig steigende Datenvolumen, dann aber auch die sich ändernden Qualitätsanforderungen, insbesondere in Bezug auf Signallaufzeiten und Zuverlässigkeit der Übertragung. Diese werden wesentlich in den Funkzugangsnetzen (RAN) bestimmt, die ca. 50 % des Energieverbrauchs der Mobilfunknetze benötigen. Daher konzentriert sich diese Studie auf dieses Netzsegment. Die Anpassung der Mobilfunknetze erfolgt einerseits durch den Einsatz neuer Funkschnittstellen, neuer und leistungsfähigerer Codierungsverfahren, neuer Antennentechniken und zusätzlicher neuer Frequenzbänder in höheren Frequenzlagen. Höhere Frequenzlagen (Trägerfrequenzen) haben jedoch andere, i.d.R. beschränktere Ausbreitungscharakteristika bzgl. Reichweite, Störungsempfindlichkeit und Umgehung/Penetration von Sichtbehinderungen, wie z. B. Geländestrukturen, Bäume oder Gebäude. Die neuen Technologien und die neuen Frequenzressourcen bieten erhebliche Bandbreitenverbesserungen und übertragen den Verkehr effizienter. Sie bieten durch die neuen Codierungen und Antennentechniken deutlich mehr Kapazität zur Datenübertragung, aber natürlich haben sie auch einen anderen Energiebedarf. Ein Kernproblem in Mobilfunknetzen ist die Grundlast im RAN, d.h. die permanente Sende- und Empfangsbereitschaft, wegen der das RAN in Niederlastzeiten nicht vollständig abgeschaltet werden kann. Hier gab es mit der 5G Funkschnittstelle deutliche Fortschritte. Die Studie beschreibt auf der Basis von Erfahrungen aus der Modellierung des Energieverbrauches in bestehenden Mobilfunknetzen die Zusammenhänge von Nutzerbedarfsveränderungen und Energieverbrauch, unter Einbeziehung neuer, energieeffizienterer Technologien und neuer Frequenzen, bis hin zur Wirkung von Funkzellverdichtungen. Dabei wird gezeigt, dass das Datenvolumen nur ein eingeschränkt geeigneter Proxy für die Prognose des Energieverbrauchs von Funkzugangsnetzen ist. Im Ergebnis bleibt die Perspektive, dass der Energieverbrauch der Mobilfunknetze angesichts der stark wachsenden Nachfrage und trotz einer deutlichen Steigerung der Energieeffizienz der Netztechnologien, sichtbar ansteigen wird. Dem kann weiterhin begegnet werden, indem ergänzend zu den Mobilfunknetzen, insbesondere in Gebäuden, das Zusammenspiel von Smartphones durch Mobile-Offloading über Wi-Fi in Glasfaserfestnetze weiter ausgebaut wird und so die Mobilfunknetze entlastet werden. |
| Abstract: | Mobile telecommunication networks must be adapted to changing user demand in a frequent manner, because they rely on scarce frequency resources. In the fore is the permanently increasing data volume per user, but next comes the increasing quality demand, especially regarding the latency and reliability of the transmission. All will be dominantly determined by the Radio Access Networks (RAN). The RAN consumes approximately 50 % of the power consumption of the mobile networks. Thus, this study concentrates on this important network segment. The adaption on the increasing demand will be taken care off by introducing new radio interfaces with new and more powerful coding methods, new antenna techniques, additional frequency blocks in higher frequency spaces. Higher frequency spaces (bearer frequencies) have different typically more restricted emission characteristics regarding reach, noise susceptibility and surrounding/ penetration of walls, line of sight interruptions, by landscape/ surface, trees/ forests or buildings. The new technologies and frequency resources offer significant bandwidth improvements and transmit traffic more efficiently. By new coding and new antenna techniques they offer significantly higher data transmission capacity. But of course, they have a different power consumption demand. A mobile radio network's core problem is the basic power demand for being always on to send or receive transmissions, thus the RAN cannot be switched off completely. 5G new radio improves this situation by allowing to switch-off frequency blocks completely, if at least some blocks remain ready to operate for sensing and activating on demand. Based on experience on modelling energy demand in existing mobile networks the study describes the interdependencies of changing user demand and power demand, taking into account new and more energy efficient technologies and new frequency blocks up to radio cell densification This shows that data volume is only a limited proxy for forecasting the energy consumption of wireless access networks. As a result, the view remains that the total power consumption of mobile networks will increase significantly due to strong demand, which exceeds the substantial increase in the energy efficiency of telecommunications network elements. One can counteract these effects by improving the inhome/indoor interaction of smartphones and Wi-Fi access points for mobile off-loading, thus relaxing the mobile network load. |
| Keywords: | Telefonnetz, Energieeinsparung, Telekommunikationsnetz, Konsumentenverhalten, Telekommunikationspreis |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:334507 |
| By: | Massimo Guidolin, Serena Ionta |
| Abstract: | We study forward-looking climate policy uncertainty through a macro-finance lens, focusing on the transmission of climate uncertainty shocks to aggregate and sectoral dynamics. Using monthly U.S. data from 2014 to 2025, we estimate a Bayesian Proxy-SVAR identified with an external instrument derived from the realized volatility of the ICE U.S. Carbon Futures Index, a market directly exposed to climate regulation. This proxy isolates the unexpected and forward-looking component of climate-policy uncertainty. We find that climate uncertainty shocks tighten financial conditions, raise market volatility and financial stress, and reduce output, prices, and stock market valuations, triggering an accommodative monetary policy response. At the sectoral level, we document heterogeneity along two complementary dimensions. A broad green–brown decomposition shows that transition risk exposed (brown) sectors experience deeper and more persistent contractions, whereas less exposed (green) sectors recover faster. We then perform a full sector-by-sector disaggregation of industrial production and valuation responses and match each sector to its EPA supply-chain emission intensity. This granular mapping reveals a systematic relationship between carbon intensity and the severity of climate uncertainty-induced contractions: higher emission industries exhibit larger and more persistent real and financial declines. Overall, forward-looking climate-policy uncertainty acts as a financial amplifier, propagating primarily through volatility and valuation channels and reinforcing the asymmetric dynamics of the low-carbon transition. |
| Keywords: | Climate Policy Uncertainty, Financial Transmission Mechanism, Bayesian ProxySVAR, Green vs Brown Sectors, Realized Volatility. |
| JEL: | E32 E44 Q54 G12 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:baf:cbafwp:cbafwp26262 |
| By: | Zuloaga, Gonzalo; Plückebaum, Thomas; Kulenkampff, Gabriele; Eltges, Fabian |
| Abstract: | Diese Studie analysiert die energie- und emissionsbezogenen Wirkungen der Kupfer-Glasfaser-Migration im deutschen Anschlussnetz vor dem Hintergrund der klimapolitischen Zielsetzungen des European Green Deal, der seit 2019 eine Reduktion der Treibhausgasemissionen um 50 % bis 2030 sowie Klimaneutralität bis 2050 vorsieht. Ziel der Analyse ist es, den Beitrag des Glasfaserausbaus zur Steigerung der Energieeffizienz und zur Reduktion der CO₂-Emissionen differenziert zu bewerten und auf Basis szenariobasierter Modellrechnungen Maßnahmen zu identifizieren, die diese Effekte gezielt unterstützen. Methodisch basiert die Studie auf einem Bottom-Up-Modellansatz. In einem ersten Schritt wird über eine detaillierte Netzdimensionierung das Mengengerüst sowohl der passiven Infrastruktur für den FTTH/B-Netzausbau als auch der aktiven Netzkomponenten für den Netzbetrieb ermittelt. Der Ausbau berücksichtigt ausschließlich die noch erforderlichen Trassenkilometer für eine flächendeckende Glasfasererschließung. Das Mengengerüst des Netzbetriebs differenziert nach Zugangstechnologien und wird im Zeitverlauf durch die modellierte Kupfer-Glasfaser-Migration variiert. In einem zweiten Schritt werden diese Mengengerüste mit technologiespezifischen Stromverbräuchen und globalen Emissionsfaktoren für Deutschland verknüpft, sodass sowohl der Energieverbrauch als auch die CO₂-Emissionen von Netzausbau und -betrieb jahresbezogen bis 2050 ermittelt werden können. Die zugrundeliegende Datenbasis besteht aus gemeindespezifischen Struktur- und Versorgungsdaten von DESTATIS, dem Breitbandatlas der Bundesnetzagentur sowie technischen und umweltbezogenen Kenndaten einzelner Netzelemente, insbesondere standardisierte Energiegrenzwerte aus dem EU Code of Conduct on Energy Consumption of Broadband Communication Equipment. Die Modellergebnisse zeigen, dass eine vollständige Anschlussmigration auf FTTH relevante Energieeinsparpotenziale aufweiset, die die Emissionen des Glasfaserausbaus bis 2040 vollständig amortisieren. Somit ist bis 2050 mit einer insgesamt positiven Netto-Bilanz des Glasfaserausbaus durch die Kupfer-Glasfaser-Migration in Deutschland zu rechnen. Ein Verbleib von FTTB-, DOCSIS- oder Mobilfunkanschlüssen würde diese Entwicklung nachteilig beeinflussen und könnte sogar die positive ökologische Netto-Bilanz von Glasfaserausbau- und -Migration gefährden. Zusätzlich kann die Dekarbonisierung des Energiemixes zum Multiplikator der Migration werden. Die Kupfer-Glasfaser-Migration steigert Energieeffizienz im Netzbetrieb, die Dekarbonisierung trägt ferner dazu bei, dass die erzeugte Energie zunehmend ohne CO₂- Emissionen erzeugt werden kann. In jedem Fall ist eine Verringerung des Energiebedarfs oder dessen unterproportionalem Wachstum im Verhältnis zur Steigerung der Datenvolumina von wesentlicher Bedeutung, unabhängig davon, wie sauber die Energie erzeugt wird. Elektrische Energie benötigt immer Ressourcen, und sei es zur Herstellung und Aufstellung von photovoltaischen Kollektoren und Speicherverfahren zum Ausgleich zwischen Erzeugungs- und Verbrauchszyklen. Ein Verbrauch für die Telekommunikation bedeutet immer, dass diese ggf. sauber erzeugte Energie für andere Zwecke nicht zur Verfügung steht, sieht man einmal von den Kosten für die Energie ab. |
| Abstract: | This study examines the energy- and emissions-related impacts of the copper-to-fibre migration in the German access network in the context of the climate policy objectives of the European Green Deal, which aims to reduce greenhouse gas emissions by 50 % by 2030 and to achieve climate neutrality by 2050. The analysis seeks to assess, in a differentiated manner, the contribution of fibre deployment to improvements in energy efficiency and reductions in CO₂ emissions, and to identify - based on scenario-based modelling - measures that can effectively enhance these outcomes. Methodologically, the study applies a bottom-up modelling approach. In a first step, detailed network dimensioning is used to derive the quantity framework for both the passive infrastructure required for FTTH/B deployment and the active network components involved in network operation. The expansion considers exclusively the remaining fiber optic network infrastructure needed to achieve nationwide fibre coverage. The quantity framework for network operation is differentiated by access technology and evolves over time as a result of the modelled copper-to-fibre migration. In a second step, these quantities are combined with technology-specific electricity consumption values and national average emission factors, enabling the quantification of both energy consumption and CO₂ emissions from the network deployment and network operation over multiple periods up to 2050. The analysis is based on municipality-level demographical data from DESTATIS, and coverage data from the Breitbandatlas and Bundesnetzagentur, complemented by technical and environmental data of individual network elements, particularly from the standardised energy benchmarks from the EU Code of Conduct on Energy Consumption of Broadband Communication Equipment. The modelling results show that a complete migration to FTTH offers significant energy savings potential, which will completely offset the emissions from fibre optic network rollout by 2040. By 2050, fibre optic expansion is expected to have an overall positive net balance in Germany as a result of the migration from copper to fibre optics. Retaining FTTB, DOCSIS or mobile based connections would have a negative impact on this development and could even jeopardise the positive net ecological balance of fibre optic expansion and migration. In addition, the decarbonisation of the energy mix can become a multiplier for the savings effects of the migration. Copper-fibre migration increases energy efficiency in network operation, while decarbonisation also contributes to the required energy being produced with fewer CO₂ emissions. In any case, reducing energy consumption or ensuring that it grows at a slower rate than the data volumes increase, is essential, regardless of how cleanly the energy is generated. Energy production always requires resources, whether for the production and installation of photovoltaic collectors or for storage methods to balance generation and consumption cycles. Consumption for telecommunications always means that this energy, which may have been generated cleanly, is not available for other purposes, apart from the cost of the energy itself. |
| Keywords: | Glasfaserkommunikation, Energieeinsparung, Telekommunikationsnetz, Netzwerk, Deutschland |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:wikdps:334509 |
| By: | Yan, Shen; Wang, Huajin; Guo, Feng |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360781 |
| By: | Laurens, Noémie |
| Abstract: | Critical minerals (CMs) have become a strategic priority for the European Union (EU) amid the green and digital transitions. These resources - including lithium, cobalt, rare earths and nickel - are essential for clean energy technologies, defence systems and electronics. Yet, their processing and refining are highly concentrated in a few countries, leaving the EU especially vulnerable to supply disruptions and fuelling geopolitical tensions. Recent shocks, including the COVID-19 pandemic and the war in Ukraine, have further exposed the fragility of supply chains. At the same time, extracting and trading CMs pose severe environmental and social challenges, from high carbon footprints to local community impacts. EU trade policy is therefore confronted with a trilemma: how to safeguard economic competitiveness, ensure environmental sustainability and enhance security of supply. This policy brief summarises research tracing how the European Commission's trade discourse on CMs has evolved to address the trilemma (Laurens, 2025). Initially, communications focused narrowly on free trade and market access for raw materials. Gradually, sustainability and security considerations entered the narrative. Most recently, the EU has embraced a hybrid framing, simultaneously highlighting economic, environmental and security objectives in its trade discourse on CMs. Although this hybrid discursive approach can help build broader support for CM policies and agreements by appealing to diverse stakeholders, it also demands careful policy design to minimise trade-offs and deliver on its promises. Without credible implementation and genuine integration of economic, environmental and security objectives, hybrid framing risks remaining largely rhetorical and failing to steer policy in practice. Key policy messages: The EU should adopt an integrated approach that effectively addresses economic, sustainability and security goals together while anticipating trade-offs to support more robust CM policies. This requires strong coordination across trade, industry, environment and security-related directorates-general to align CM strategies, avoid policy conflicts and maximise synergies. It may also require short-term economic sacrifices for long-term resilience. Early and meaningful engagement with research institutions, civil society, local communities and industry should move beyond formal consultation and enable genuine co-creation of solutions. Dialogue should begin before key decisions on CMs are finalised, incorporate stakeholder input transparently, and respond to concerns about sustainability and security of supply. CM policies and agreements should provide for binding obligations and concrete implementation plans to ensure environmental and labour protection, local value addition, skills development and technology transfer in resource-rich but economically vulnerable regions. Listening to partner governments and local communities as well as investing in the knowledge of local political, social and environmental contexts are essential for building trust and long-term partnerships. International cooperation on CMs should be strengthened through inclusive arrangements that involve both major consumers and producing countries. Clubs composed primarily of resource-poor but wealthy economies risk being perceived as exclusionary. |
| Keywords: | competitiveness, critical minerals, discourse analysis, European Commission, framing, geopolitics, green transition, security, sustainability, trade |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:idospb:334560 |
| By: | Martín Saldias; Roberto Panzica |
| Abstract: | This paper examines the impact of transition risk on the stability of the European financial system. Using a novel dataset, we assess the systemic relevance of euro area banks’ exposures to climate-relevant sectors as of 2024. By clustering banks into communities, we find that those more exposed to transition risk tend to have smaller total exposures towards non-financial corporation and greater sectoral diversification. We then introduce two climate stress-test methodologies: one based on a policy shock and another linked to a regulatory CO2 reduction target. The latter shows that shocks in carbon-intensive sectors propagate through industrial interdependencies, affecting less-intensive sectors and amplifying impacts on highly intensive ones. Under mild scenarios, voluntary capital buffers absorb losses in most banks, amounting to EUR 104 billion and EUR 54 billion for the two methodologies, indicating overall system resilience. In extreme scenarios, however, losses rise to EUR 209–220 billion, with capital depletion of 2.4–2.6% of risk-weighted assets; voluntary buffers cover losses in 85–90% of banks. The CO2-based approach highlights the importance of indirect input–output spillovers, which account for 73% of total losses. |
| JEL: | G01 G10 G21 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ptu:wpaper:w202520 |
| By: | Ai, Dan; Crago, Christine L.; Mullins, Jamie T. |
| Abstract: | We examine the impact on mortality of co-exposure to hot temperatures and power outages using a county-level data set in the United States from 2015 to 2019. We find that each additional hour of power outage is associated with a 0.04% increase in monthly mortality rate. Furthermore, we show that the mortality effects of hot days are exacerbated by the co-occurrence of power outages, with each hour of power outage in a month increasing the harm from a hot day by 3%. Larger magnitudes of both of these effects are identified for longer and more widespread outages. We also show heterogeneity across climate regions in the estimated relationships, which is consistent with heavier reliance on technological adaptations to heat such as air conditioning in hotter climate regions. Taken together, our results suggest that the reliability of electricity grids serves as an important means of adaptation to high temperatures and climate change. |
| Keywords: | Health Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360929 |
| By: | Matthieu Bordenave; Giovanna Ciaffi |
| Abstract: | This paper evaluates the macroeconomic impact of green public spending by quantifying the responses of GDP, private investment, employment, and labour productivity across 30 European countries from 1995 to 2020. Using linear and nonlinear Local Projection methods, our findings indicate that green fiscal policies can positively and persistently affect GDP and employment levels, crowding-in private investment and generating a positive impact on productivity dynamics. When distinguishing between low- and high-income countries, we observe that the multipliers on GDP and employment are higher for the latter group, although no significant gains in productivity are found. However, productivity gains, albeit small in magnitude, appear to be concentrated in low-income countries. Moreover, our results show that the impact of green investments on GDP and private investment is higher in countries with high levels of green public consumption expenditure over total green public expenditure. These findings underline the importance of tailored fiscal policies to maximize the benefits of green public expenditure across different economic contexts. |
| Keywords: | Green Public Spending, Fiscal Multipliers, Green Investment, Green Consumption, European Divide, Ecological Economics |
| JEL: | E62 Q54 Q58 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:imk:fmmpap:121-2025 |
| By: | Robson, Beatrice |
| Abstract: | Agrifood systems contribute one-third of anthropogenic greenhouse gas emissions, about half of which originate from livestock through biological processes like enteric fermentation and manure. Anaerobic digesters are a technology that can reduce manure-based methane emissions, and in many cases convert the methane into energy that can be sold or used on-farm. Despite multiple supportive policies and subsidies, adoption remains limited. This study examines anaerobic digesters on United States dairy operations through the EPA-USDA AgSTAR database, exploring determinants to the emission abatement and the privately desirable energy outputs. Stochastic frontier production analysis is then used to model the efficiency of operational digesters, with implications for climate policy analysis and profitability studies for dairy operators. The average emissions abatement efficiency is found to be around 70%, and the average energy generation slightly lower, indicating opportunities for improvement both in terms of climate performance and cost-offsetting energy outputs. |
| Keywords: | Productivity Analysis, Research and Development/Tech Change/Emerging Technologies |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361181 |
| By: | Uz, Dilek; Adom, Enoch; Gordon, Beatrice |
| Keywords: | Resource/Energy Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:361220 |
| By: | Pranshu Raghuvanshi (India Institute of Science, Bangalore, India); Anjula Gurtoo (India Institute of Science, Bangalore, India) |
| Abstract: | This study uses the Theory of Planned Behaviour (TPB) framework and expands it by including Optimism, Innovativeness and Range Anxiety constructs. In this study, conducted in Lucknow, the capital of India's most populous province (Uttar Pradesh), a multi stage random sampling design was employed to select 432 respondents from different city areas. The survey instruments were adapted from similar studies and suitably modified to suit the context. Using exploratory factor analysis, 18 measurement items converged into six factors, namely attitude, subjective norms, perceived behavioural control, optimism, innovativeness and range anxiety. We confirmed the reliability and validity of the constructs using Cronbach's alpha, composite reliability, average variance extracted and discriminant validity analysis. We explored the relationship between them using structural equation modelling. All factors but Optimism were found to be significantly associated with adoption intention. We further employed mediation analysis to examine the mediation pathways. The TPB components mediated the effect of innovativeness but not range anxiety. The study's insights can help policymakers and marketers design targeted interventions that address consumer concerns, reshape consumer perceptions, and foster greater EV adoption. The interventions can target increasing the mediating variables or decreasing range anxiety to facilitate a smoother transition to sustainable transportation. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.07188 |
| By: | Grace Weishi Gu; Galina Hale; Bhavyaa Sharma; Jinhong Wu |
| Abstract: | Do banks help or hamper green transition? To answer this question, we analyze the dynamics of bank lending to firms in the US, EU, and separately Denmark in relation to the borrowers' emissions of CO2. We evaluate the allocation of bank loans across industries and within industries across firms, allowing for heterogeneity of firm emissions and changes in these emissions. To facilitate green transition, bank lending needs to flow to greener and greening firms, but not out of high-emission industries that need funding to transition to cleaner production methods. Using syndicated loan data, we find that for US borrowers, bank lending was likely hampering green transition, while in the EU bank lending is more likely to facilitate it. Zooming in on Denmark, for which we have data on the full universe of firms and banks, we find more significant credit reallocation to greener firms, especially within industries. However, the reallocation of funds to green firms is, to a large extent, a byproduct of green firms becoming bigger. We do not find any evidence consistent with banks active stewardship of green transition. |
| JEL: | F21 G21 Q54 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34681 |
| By: | Halkos, George; Zisiadou, Argyro; Gkargkavouzi, Anastasia; Aslanidis, Panagiotis-Stavros |
| Abstract: | This Annual Report presents the scientific contributions in 2025, highlighting its interdisciplinary engagement with contemporary challenges in climate change, sustainable development, and economic policy. The objective is to summarize the core scientific strands, inter alia, (i) climate change and risk governance, (ii) circular economy, (iii) energy policy, (iv) environmental psychology and social dimensions, (v) sustainable development and welfare, and (vi) sustainable tourism. Through empirical analyses, methodological advancements, and policy-oriented frameworks, the research addresses systemic environmental risks, energy transition challenges, advances in eco-efficiency measurement, inclusive wealth policy insights, and behavioral drivers of sustainability. Particular emphasis is given on resiliencebased governance against climate change and the challenges of circular economy transition within European industries. Moreover, the role of the integration of psychological and sociocultural dimensions into environmental valuation and policy design was also important. To summarize, the current report documents a year of scholarly progress and provides a robust foundation for future research and evidence-based decision-making in support of sustainable and climate-resilient development pathways. |
| Keywords: | Climate change; Circular economy; Energy policy; Environmental psychology; Sustainable development; Inclusive wealth; Climate resilience. |
| JEL: | D81 O13 Q01 Q54 Q56 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127744 |
| By: | Ofori, Isaac K.; Veling, Louise; Cullen, John |
| Abstract: | As the EU Commission strategises towards a more technologically advanced region, a critical question arises: Does frontier technology adoption (FTR) truly foster inclusive green growth (IGG)? This study answers this question by empirically examining the impact of FTR on IGG, while accounting for the contingency role of electricity access. Applying pooled least squares, Driscoll-Kraay standard errors, and the dynamic generalised method of moments techniques, we uncover a paradox: while FTR accelerates economic growth and lowers greenhouse gas emissions, it exacerbates income inequality. The second lesson from this study is that although electricity access enhances the growth and environmental sustainability benefits of FTR, it only mitigates (but does not nullify) the downside of income inequality. These findings underscore the crucial need for the EU Commission to establish complementary and compensatory mechanisms to ensure that the EU’s technological leap delivers greener and more inclusive growth. |
| Keywords: | AI, EU, Electricity access, Frontier technologies, Inclusive green growth, Technological transition |
| JEL: | O33 O52 Q01 Q43 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:335106 |
| By: | Jules Linden; Cathal O'Donoghue; Denisa Sologon |
| Abstract: | Carbon taxes are increasingly popular among policymakers but remain politically contentious. A key challenge relates to their distributional impacts; the extent to which tax burdens differ across population groups. As a response, a growing number of studies analyse their distributional impact ex-ante, commonly relying on microsimulation models. However, distributional impact estimates differ across models due to differences in simulated tax designs, assumptions, modelled components, data sources, and outcome metrics. This study comprehensively reviews methodological choices made in constructing microsimulation models designed to simulate the impacts of carbon taxation and discusses how these choices affect the interpretation of results. It conducts a meta-analysis to assess the influence of modelling choices on distributional impact estimates by estimating a probit model on a sample of 217 estimates across 71 countries. The literature review highlights substantial diversity in modelling choices, with no standard practice emerging. The meta-analysis shows that studies modelling carbon taxes on imported emissions are significantly less likely to find regressive results, while indirect emission coverage has ambiguous effects on regressivity, suggesting that a carbon border adjustment mechanism may reduce carbon tax regressivity. Further, we find that estimates using older datasets, using explicit tax progressivity or income inequality measures, and accounting for household behaviour are associated with a lower likelihood of finding regressive estimates, while the inclusion of general equilibrium effects increases this likelihood. |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2601.07713 |
| By: | Shigeharu Okajima (Kobe University, Graduate School of International Cooperation Studies, 2-1 Rokkodai-cho, Nada-ku, Kobe 657- 8501.); Hiroko Okajima (Nagoya University, Nagoya University Graduate School of Economics, Furocho, Chikusa Ward, Nagoya City Aichi 464-8601.); Kenta Nakamura (Kobe University, Graduate School of Economics, 2-1 Rokkodai-cho, Nada-ku, Kobe 657-8501); Yoshito Nakayama (Osaka University of Economics, 2-2-8 Osumi HigashiYodogawa-ku Osaka-shi, 533-8533.) |
| Abstract: | This study evaluates the environmental effectiveness of Japan’s eco-car tax incentive program by explicitly accounting for the strategic weight manipulation by automobile manufacturers. Using monthly vehicle- level panel data from 2005 to 2021, we estimate a structural demand model for the Japanese passenger car market to examine how firms respond to weight-based fuel economy standards. Our results show that vehicles strategically adjusted to exceed regulatory weight thresholds experienced a 31% increase in relative market share, reflecting a substantial demand expansion driven by regulatory compliance rather than genuine fuel efficiency improvements. To assess the broader implications, we conduct a structural substitution counterfactual analysis comparing the observed outcomes with a no- manipulation benchmark. The counterfactual analysis reveals that strategic weight manipulation increases the sales of manipulated vehicles by 102, 771 units and reduces the sales of compliant vehicles by only 3, 707 units. This asymmetric displacement indicates that manipulation primarily expands overall demand rather than reallocating sales among substitutes. The resulting demand distortion produced a net increase of 133, 162 tons of CO2 emissions over the sample period, substantially undermining the policy’s emissions-reduction objectives. Our findings demonstrate that weight-class-based fuel economy regulation creates strong incentives for regulatory gaming, which materially weakens environmental effectiveness. The results highlight the need for policy designs that minimize discrete eligibility thresholds and reward continuous and verifiable improvements in real-world fuel efficiency. |
| Keywords: | eco-car policy, strategic manipulation, vehicle demand, CO2 emissions |
| JEL: | Q51 Q53 Q58 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:was:dpaper:2504 |
| By: | Geden, Oliver; Reisinger, Andy |
| Abstract: | Die globale Erwärmung wird voraussichtlich bis Anfang der 2030er Jahre über 1, 5 °C steigen. Eine Rückkehr zu 1, 5 °C vor Ende des 21. Jahrhunderts würde zwar nicht alle Schäden verhindern, die in einer Phase überhöhter Temperaturen entstehen. Doch verglichen mit einer dauerhaften Erwärmung über 1, 5 °C würde sie die Risiken verringern. Um Ausmaß und Dauer des »Overshoot«, also der Phase oberhalb der 1, 5°C-Linie, sowie die damit einhergehenden Klimarisiken zu begrenzen, sind verstärkte Klimaschutzmaßnahmen dringend erforderlich. Ziel muss es dabei sein, die maximale globale Erwärmung deutlich unter 2 °C zu halten. Für das anschließende Wiederabsenken der globalen Durchschnittstemperatur sind global anhaltende netto-negative Emissionen von Kohlendioxid (CO2) notwendig, möglicherweise sogar netto-negative Emissionen aller Treibhausgase (THG). Dies stellt die internationale Klimapolitik in ihrem Bemühen, »1, 5 °C in Reichweite zu halten«, vor neue Herausforderungen. Für klimapolitische Vorreiter wie die Europäische Union (EU) bedeutet dies, dass »Netto-Null« nicht mehr als Endpunkt, sondern nur als Übergangspunkt auf dem Weg zu netto-negativen THG-Emissionen betrachtet werden muss, begleitet von der Entwicklung neuer politischer Instrumente. |
| Keywords: | globale Erwärmung, Anstieg um 1, 5 °C, Treibhausgase (THG), Overshoot, Kohlendioxid (CO2) |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpakt:334556 |
| By: | Woolford Jayne (European Commission - JRC); Kostarakos Ilias (European Commission - JRC) |
| Abstract: | Silesia is characterised by a coal mining and energy intensive industrial heritage and is undergoing a transition to exit coal that has significant impacts on its industry, employment and communities. In the context of the changing regulatory context for cohesion policy under the next Multiannual Financial Framework, and the transition pathways of the industrial ecosystems developed by DG GROW, a pilot exercise was undertaken: firstly, to track the key development indicators in the region and, secondly, to determine the extent to which the needs of transitioning ecosystem actors in Silesia were being met by current EU financial resources and programming in the region. The research concluded that, partially as a result of the significant amount of funding directed to Poland and the breadth of its focus, the majority of the challenges were being addressed. Nevertheless, some remaining investment gaps and bottlenecks to territorial and ecosystem development were identified, most significantly, that the transition to renewable and energy sources is occurring too slowly, and rapid investment in renewable energy with a long-term perspective is needed in the region. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc144056 |
| By: | Ricardo Alonzo Fern\'andez Salguero |
| Abstract: | The growing urgency of the climate crisis has driven the implementation of diverse policy instruments to mitigate greenhouse gas (GHG) emissions. Among them, carbon pricing mechanisms such as carbon taxes and emissions trading systems (ETS), together with voluntary carbon markets (VCM) and compensation programs such as REDD+, are central components of global decarbonization strategies. However, academic and political debate persists regarding their true effectiveness, equity, and integrity. This paper presents an umbrella review of the empirical evidence, synthesizing key findings from systematic reviews and meta-analyses to provide a consolidated picture of the state of knowledge. A rigorous methodology based on PRISMA guidelines is used for study selection, and the methodological quality of included reviews is assessed with AMSTAR-2, while the risk of bias in frequently cited primary studies is examined through ROBINS-I. Results indicate that carbon taxes and ETS have demonstrated moderate effectiveness in reducing emissions, with statistically significant but heterogeneous elasticities across geographies and sectors. Nonetheless, persistent design problems -- such as insufficient price levels and allowance overallocation -- limit their impact. By contrast, compensation markets, especially VCM and REDD+ projects, face systemic critiques regarding integrity, primarily related to additionality, permanence, leakage, and double counting, leading to generalized overestimation of their real climate impact. We conclude that while no instrument is a panacea, compliance-based carbon pricing mechanisms are necessary, though insufficient, tools that require stricter design and higher prices. Voluntary offset mechanisms, in their current state, do not represent a reliable climate solution and may undermine the integrity of climate targets unless they undergo fundamental reform. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.06887 |
| By: | Kim, Yunjin; Rhew, Chanhee |
| Keywords: | Agricultural and Food Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360668 |
| By: | Covelli María Paula |
| Abstract: | Las ciudades concentran cerca del 70% de las emisiones globales de gases de efecto invernadero (GEI). En Argentina, la Ciudad Autónoma de Buenos Aires (CABA) genera el 4% de las emisiones nacionales, siendo el consumo eléctrico su principal fuente. Este trabajo evalúa el impacto económico de una medida del Plan de Acción Climática local que busca instalar paneles solares en el 30% de los techos residenciales hacia 2050. Para ello, se desarrolló una Matriz de Contabilidad Social bi-regional de Argentina (2018), con apertura detallada del sector energético, y se simuló la medida mediante un modelo insumo-producto regional. Los resultados indican efectos económicos positivos tanto en CABA como a nivel nacional, impulsados por la caída en el precio de la electricidad. |
| JEL: | Q4 R5 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:aep:anales:4788 |
| By: | Shubhangi, Tanaya |
| Abstract: | This study is an empirical analysis into the causal claim that India’s National Clean Air Programme (NCAP), despite being an ambient air pollution policy is able to bring down industrial emissions. Using a panel dataset of Indian cities from 2011-2022 and by employing a Synthetic Differences-in-differences (SDID) approach, the study measures the causal impact of NCAP on industrial emissions, proxied by PM10 levels, to answer this question. The SDID model is particularly suited for this analysis as it creates a robust, data-driven counterfactual from a small control group. Results indicate NCAP caused a significant reduction in PM10 concentrations, with an estimated average treatment effect of −14.05 𝜇𝑔/𝑚3. This result suggests well-designed ambient regulations can be a cost-effective policy tool for pollution mitigation in developing countries. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea25:360766 |