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on Energy Economics |
| By: | Balthazar de Vaulchier; Lionel Fontagné; Yu Zheng |
| Abstract: | Electricity generation presents distinctive modeling challenges due to the absence of storage, instantaneous demandsupply balancing requirements, and heterogeneous generation technologies with different cost structures. This paper addresses these challenges by incorporating a base--peak load structure into large-scale computable general equilibrium (CGE) models, offering a middle ground between detailed energy system models and multisectoral global economic frameworks. We first develop a transparent toy model inspired by \textcite{bachmann2022} to demonstrate that first-order approximations of cascading effects, following Hulten's theorem, are inadequate when shocks are large and elasticities of substitution are low. Building on the theoretical insights, we embed a base--peak structure into the MIRAGE CGE model, treating electricity as a Leontief production function between base load generation (coal, nuclear, hydro, and part of renewables) and peak load generation (gas, oil, and peak renewables). This refinement captures the merit order dispatch mechanism and bottleneck effects when peak generation is constrained. We apply the enhanced model to assess the 2022 Russian gas shock in Germany and the European Union. Our results demonstrate that the base--peak structure more accurately reproduces observed macroeconomic impacts compared to standard electricity representations, with significantly larger GDP and welfare losses particularly affecting energyintensive industrial sectors, and less possible substitution from variable renewable energies. Theoretically, we show that third-order effects become important under conditions we explicitly identify, complementing recent findings on shock amplification in production networks. For policy, our findings highlight two key levers for responding to energy shocks: supply flexibility through storage and grid interconnection, and demand smoothing through dynamic pricing and interruptible contracts. The paper contributes methodologically by demonstrating how simplified yet realistic electricity representations can be integrated into global CGE frameworks without sacrificing the broader economic feedback mechanisms essential for policy analysis. |
| Keywords: | Electricity Modeling;Base Load and Peak Load;Computable General Equilibrium;Energy Shocks;Russian Gas Crisis;MIRAGE Model |
| JEL: | C68 D58 Q41 Q43 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepidt:2026-03 |
| By: | George, Mel; Clarke, Leon; Pachauri, Shonali; Patwardhan, Anand; Pelz, Setu; McJeon, Haewon |
| Abstract: | Energy poverty indicates difficulty in securing levels of decent living energy services. This study examines the intersectional dimensions of energy poverty, with a focus on social class, geography, income, education and gender. Using a nationally representative household survey from India, it demonstrates how overlapping inequities along these dimensions leads to significant disparities in reliable access, affordable use and clean and efficient energy service delivery. Additionally, it finds that these effects differ by the type of energy service as well the dimensions of energy poverty. A counterintuitive finding emerges: urban poor households face the highest cooking fuel affordability burden due to lack of biomass fallback options. This pattern of "reverse intersectionality, " where adding rural location to a deprivation profile reduces affordability pressure through access to non-market fuel sources, challenges standard assumptions of compounding harm. Such systemic inequities extend beyond income poverty and disproportionately affect households with multiple deprivations, whereas households without any of the underlying structural inequities are always considerably better off than the national average. No prior empirical work examines whether intersectional effects vary across energy poverty dimensions or fuel types, a gap with significant implications for measurement and targeting. These findings have important implications for policy, as they suggest that interventions aimed at reducing energy poverty in India must take into account the intersecting identities and experiences of different social groups, as well as the multidimensional nature of energy poverty beyond access alone. Targeted policies and programs that address the specific barriers faced by disadvantaged communities are suggested in order to promote greater energy access and equity in India. |
| Date: | 2026–02–23 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:s6d2b_v1 |
| By: | Hegemann, Hendrik |
| Abstract: | The Euro Area experienced historically high inflation in 2022, with energy prices playing a central role. This paper examines the joint impact of various energy price shocks on inflation in the Euro Area, with a focus on the period encompassing the COVID-19 pandemic and the Russia-Ukraine war. Using a structural VAR model, the analysis identifies shocks to gasoline, diesel, jet fuel, natural gas, and electricity prices and evaluates their effects on headline and core inflation. Historically, before the pandemic, gasoline price shocks had the most substantial impact on the Euro Area HICP, while the effects of other energy price shocks were relatively minor. Spillover effects to non-energy goods were very limited, implying negligible effects on core inflation. Extending the sample to May 2023 reveals a notable change in these relationships. In particular, natural gas price shocks become substantially more important and exhibit significantly more persistent effects on inflation. In contrast to previous findings for the United States, the results suggest that energy prices, especially natural gas price shocks, played a major role in the surge in the HICP and core HICP during 2021 and 2022 within the Euro Area. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:imfswp:338106 |
| By: | Gregory Casey (Williams College); ; ; |
| Abstract: | "How will energy availability affect economic growth? Carefully identified microeconomic estimates suggest that the short-run impact of energy availability on economic outcomes is small. Building on recent advances in the environmental macroeconomics literature, I examine the difference between short- and long-run impacts of energy policy in two quantitative growth models. Both models suggest that the long-run impact of energy availability on output is almost twice as large as the short-run impact. Policies that increase energy availability may be more effective at boosting output than suggested in the existing literature." |
| Keywords: | Energy, Economic Growth, Development |
| JEL: | O44 Q43 |
| Date: | 2025–07–28 |
| URL: | https://d.repec.org/n?u=RePEc:wil:wileco:2025_109 |
| By: | Monti, Francesca (Université catholique de Louvain, LIDAM/CORE, Belgium); Van Keirsbilck, Leïla (Université catholique de Louvain, LIDAM/CORE, Belgium) |
| Abstract: | This paper explores the dynamics of U.S. sectoral producer prices in a large BVAR model where the Input-Output (IO) matrix is used to structure their longrun relationships, allowing to capture flexibly the propagation of micro shocks to aggregate variables. This model’s forecasts of headline inflation have accuracy comparable to the Survey of Professional Forecasters’ and greater than those generated by a standard BVAR with Minnesota priors, confirming that the IO matrix long-run prior conveys relevant information about the data. We identify three key shocks - an oil price shock, a cereal price shock, and a monetary policy shock - using instrumental variables and find that sectoral linkages play a significant role in their transmission. Sectoral asymmetries are crucial for evaluating the macroeconomic consequences of energy price shocks, as industries with slower price adjustments amplify inflation persistence, even after the shock dissipates. And the impact of a sector-specific shock like the cereals price shock is non-negligible once the production network accounted for. |
| Keywords: | BVAR ; production networks ; sectoral shocks |
| JEL: | C11 C55 E30 |
| Date: | 2025–09–23 |
| URL: | https://d.repec.org/n?u=RePEc:cor:louvco:2025014 |
| By: | Abhinav Das (Universität Ulm (Germany, Ulm)); Stephan Schlüter (Technische Hochschule Ulm (Germany, Ulm)); Lorenz Schneider (EM - EMLyon Business School) |
| Abstract: | This paper presents a new hybrid model for predicting German electricity prices. The algorithm is based on a combination of Gaussian process regression (GPR) and support vector regression (SVR). Although GPR is a competent model for learning sto-chastic patterns within data and for interpolation, its performance for out-of-sample data is not very promising. By choosing a suitable data-dependent covariance function, we enhance the performance of GPR. However, since the out-of-sample prediction is dependent on the training data, the prediction is vulnerable to noise and outliers. To overcome this issue, a separate prediction is calculated using SVR, which applies margin-based optimization. This method is advantageous when dealing with nonlinear processes and outliers, since only certain necessary points (support vectors) in the training data are responsible for regression. The individual predictions are then linearly combined using uniform weights. We evaluate the method on historical German day-ahead prices (2021–2023) and show that it outperforms publicly available benchmarks, namely, the LASSO estimated autore-gressive regression model and the deep neural network benchmark from the recent literature. |
| Keywords: | electricity price prediction, Gaussian process regression, support vector regression |
| Date: | 2026–02–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05531916 |
| By: | Claude Crampes; Antonio Estache |
| Abstract: | The paper shows that the entry of data centers in the electricity market leads to priceand consumption effects observed in the real world that were quite predictable froma simple conceptual modelling exercise. The size of the associated welfare losses issensitive to specific electricity market characteristics, explaining why they are oftennot comparable across regions or countries. In general, the historical users are likelyto be worse off in the short run. They will recover their losses in the longer run, butonly if the entrant finances its own capacity needs and if the data centers do not haveexcessive bargaining power. The differences in possible outcomes according to contextsuggests that one-size-fits-all policies to manage the shock across countries or regionswill fail to mitigate undesirable effects in some contexts. |
| Keywords: | Data centers; Electricity; Pricing; Regulation; Incidence |
| JEL: | D63 L50 L16 L94 O33 Q41 Q48 |
| Date: | 2026–03–15 |
| URL: | https://d.repec.org/n?u=RePEc:eca:wpaper:2013/404324 |
| By: | Wissal Zribi (ICL - Institut Catholique de Lille - UCL - Université catholique de Lille); Talel Boufateh; Duc K. Nguyen; Thomas Walther |
| Keywords: | Structure threshold VAR, SV, varying SVAR, time, carbon efficiency, Carbon prices, Uncertainty |
| Date: | 2025–09–30 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05493722 |
| By: | Wang, Yue |
| Abstract: | I study the credit channel of the electric-vehicle (EV) transition using more than 1.8 million German auto loans and leases. I show that EV financing contracts default significantly less often than comparable internal combustion engine vehicle (ICEV) contracts-particularly among lower-income borrowers. Following the 2020 expansion of German federal EV subsidies, lenders adjusted EV financing relative to comparable ICEV contracts. Independent banks tightened EV loan terms while lending to lower-income borrowers. Captive banks also tightened EV loans, mainly through non-price terms, while accommodating subsidy-period EV demand more readily through leasing. |
| Keywords: | Electric vehicles, Auto loans, Auto leasing, Captive banks, Credit risk |
| JEL: | G21 G23 G50 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:safewp:338128 |
| By: | Robert J. R. Eliott; Gavin D. J. Harper; Viet Nguyen-Tien |
| Abstract: | Electric vehicles (EVs) are central to decarbonising road transport, a sector responsible for 23% of global energy-related emissions, and their adoption carries both economic and societal implications. This paper provides an economic review of EV transitions, synthesizing theory, stylized facts, and frontier empirical findings. We document three key observations: EV adoption has historically occurred in waves that stalled and revived; contemporary adoption is highly heterogeneous across countries; and the transition reshapes automotive sector activities and supply chains, increasing reliance on geographically concentrated critical minerals and generating Environmental, Social and Governance (ESG) and political economy challenges. We then analyze the economic drivers of adoption, including total cost of ownership, network externalities, and complementary technologies such as charging infrastructure, grid integration, and digital innovations. Supply-side constraints, resource scarcity, and innovation dynamics are examined, highlighting how the EV platform interacts with broader technological and industrial systems. The analysis emphasizes the systemic, path-dependent, and platform nature of EV transitions and outlines policy-relevant insights for managing adoption, supply chains, and innovation. Finally, we identify avenues for future research, including the economics of end-of-life and used EVs, resilient supply chains, and the role of complementary technologies in accelerating low-carbon transitions. |
| Keywords: | Electric vehicles, critical materials, supply chains |
| Date: | 2026–03–17 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepdps:dp2164 |
| By: | Sarah C. Armitage; Judson Boomhower; Catherine Hausman |
| Abstract: | Reallocation of assets across firms can lead to efficiency gains, but it can also lead to distortions via rent-seeking. We examine the link between asset reallocation and rent-seeking enabled by differences in the expected cost of environmental liabilities. Focusing on the US oil and gas industry, we develop a conceptual framework that incorporates both firm specialization in well types and the judgment-proof problem, by which undercapitalized firms can avoid environmental liabilities. We then build a novel dataset with hundreds of thousands of well transfers over 1992 to 2023, showing that oil and gas wells are transferred frequently, particularly as they age and their revenues decline. Moreover, low-value wells are especially likely to be transferred to low-value firms. Transferred wells produce similar amounts in later years, but are less likely to be plugged – thus posing greater environmental risk. We conclude with policy implications related to well plugging, bonding requirements, and decarbonization. |
| JEL: | G33 G34 L25 L71 Q35 Q58 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:34961 |
| By: | Jovanovic, Nina; Darwish, Maram; Kurdi, Sikandra; Yamauchi, Futoshi |
| Abstract: | This policy note summarizes findings from a clustered randomized controlled trial (RCT) conducted in eastern Yemen to assess the impacts of subsidized solar powered drip irrigation systems on smallholder farmers’ production decisions and household food security. The study provides causal evidence on how subsidizing solar drip irrigation for smallholders affects crop choice, market engagement, and welfare outcomes in a fragile, water-scarce context. The intervention led to a significant shift in cropping patterns, with treated farmers becoming less likely to cultivate cereals and more likely to grow higher-value horticultural crops. Treated households also sold a greater share of their harvest in markets during the first season following installation, suggesting increased commercialization. However, the study did not detect significant short-term impacts on household food security, indicating that production changes did not immediately translate into improved consumption outcomes. |
| Keywords: | climate change adaptation; solar energy; irrigation; evaluation; solar powered irrigation systems; trickle irrigation; groundwater irrigation; irrigation systems; Yemen; Western Asia; Middle East |
| Date: | 2025–12–31 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:masprn:179369 |
| By: | Ashok Gulati (Indian Council for Research on International Economic Relations (ICRIER)); Deepak Guptа; Subhodeep Basu |
| Abstract: | India's electricity distribution system continues to face a structural imbalance. Publicly owned Distribution Companies (DISCOMs) bear the dual burden of universal service obligations and sometimes politically determined tariffs. This results in persistent financial losses, particularly in rural supply. While renewable energy expansion has accelerated nationally, it remains heavily centralised, doing little to alleviate the high cost of rural power delivery. Agriphotovoltaics (APV), the dual use of land for solar power generation while continuing agriculture, offers a structural innovation that can bridge this gap. By generating electricity directly within rural feeders, APV systems reduce transmission losses, defer infrastructure investments, and transform farmers from subsidised consumers into energy partners. Drawing on ICRIER’s pilot projects in Rajasthan and Odisha, the brief demonstrates how farmer-led APV models can align renewable energy deployment with livelihood enhancement. A sensitivity analysis of the Rajasthan pilot reveals that while capital subsidies can ease entry barriers, a remunerative Feed-in Tariff (FiT) of around INR 4.40/kWh is critical for ensuring long-term financial viability and scalability. The findings highlight the need for policy recalibration that recognises APV as both a decentralised energy solution and a rural development instrument that would be capable of improving DISCOM viability, enhancing farmer incomes, and advancing India's just energy transition. |
| Keywords: | Agriphotovoltaics, farmers-income, business models, Feed-in-Tariff, PM KUSUM, icrier |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:bdc:ppaper:62 |
| By: | Paula Pedraza Aguirre (DTS - Département des Technologies Solaires - LITEN / CEA-DES - Laboratoire d'Innovation pour les Technologies des Energies Nouvelles et les nanomatériaux - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INES - Institut National de L'Energie Solaire - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique); Arnaud JAY (DTS - Département des Technologies Solaires - LITEN / CEA-DES - Laboratoire d'Innovation pour les Technologies des Energies Nouvelles et les nanomatériaux - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INES - Institut National de L'Energie Solaire - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique); Monika Woloszyn; Etienne Wurtz (DTS - Département des Technologies Solaires - LITEN / CEA-DES - Laboratoire d'Innovation pour les Technologies des Energies Nouvelles et les nanomatériaux - CEA-DES (ex-DEN) - CEA-Direction des Energies (ex-Direction de l'Energie Nucléaire) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - INES - Institut National de L'Energie Solaire - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - USMB [Université de Savoie] [Université de Chambéry] - Université Savoie Mont Blanc - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | Countries are responding to the need to reduce their carbon footprints by adopting new sustainable energy technologies through emerging trends and economic models. One of these trends is the 'Energy-as-a-Service' (EaaS) model, where companies assume responsibility for investment, operation, and maintenance, while consumers benefit from sustainable energy services. This model is typically structured through subscription or leasing agreements. This study aims to analyze the economic impact of integrating solar systems with conventional heating and domestic hot water (DHW) technologies in residential energy services, using a case study in France. By applying financial analysis methods such as Total Annualized Cost (TAC) and Benefit-Cost Ratio (BCR), four technology configurations with two renewable energy inclusion scenarios are evaluated within a EaaS model structured around annual subscription payments. The study provides initial insights into how economic parameters, such as energy tariffs and financial incentives, influence the transition to energy services. Results indicate that the annual service cost varies significantly depending on factors like capital costs, equipment lifespan, interest rates, and energy prices. Additionally, the integration of photovoltaic systems (PV) suggests that the valuation of the business model can vary depending on sales structuring, highlighting the need for a global sensitivity analysis to draw more conclusive insights. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:cea-05535502 |
| By: | MHA Ridhwan (Bank Indonesia); Meily Ika Permata (Bank Indonesia); Rudy Marhastari (Bank Indonesia); Fichrie Fachrowi Adli (Bank Indonesia); Leinnia Fawaqa (Bank Indonesia); Rasyid Ramadhan (Bank Indonesia); Amanda Lethizya Lestari (Bank Indonesia); Annisa Fisakinah (Bank Indonesia); Muhammad Adamul Khair (Bank Indonesia); Yulian Zifar Ayustira (Bank Indonesia); Gandhiano Dwi Putra (Bank Indonesia) |
| Abstract: | This paper assesses Indonesia’s strategy of downstreaming crude palm oil (CPO) into biodiesel, with a focus on higher blending mandates (B50 and above) and their implications for energy security, macroeconomic stability, and sustainability. We combine CPO and biodiesel material balance sheets with trade and subsidy accounting to quantify diesel import savings, foregone CPO export earnings, and fiscal needs under alternative blending scenarios. These sectoral results are then integrated into a 207-sector, multiregional computable general equilibrium (CGE) model for Indonesia, calibrated using national and interregional input–output tables, as well as empirically derived shocks for diesel and biodiesel output under B50, B60, and B70. The findings show that while biodiesel blending clearly reduces dependence on imported diesel and supports the government’s renewable energy and downstreaming objectives at moderate blend levels, higher mandates generate increasing macroeconomic and fiscal costs. For B50–B70, foregone CPO export revenues systematically exceed diesel import savings, the current account deficit widens, real GDP and household consumption fall, and GRDP declines in all major palm oil–producing provinces. Subsidy requirements rise sharply as biodiesel remains structurally more expensive than diesel. Additionally, the potential land-use change from forest and peat conversion to source feedstock could undermine the net emission benefits of higher blends, raising sustainability concerns. Overall, the results suggest that any move beyond B50 should be conditional on demonstrable improvements in CPO productivity, feedstock diversification, financing architecture, and land-use governance. |
| Keywords: | Biodiesel policy, crude palm oil, downstreaming |
| JEL: | C68 F41 Q18 Q42 Q43 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp052025 |
| By: | Juan S. Mora-Sanguinetti (BANQUE DE FRANCE AND BANCO DE ESPAÑA); Cristina Peñasco (BANQUE DE FRANCE AND UNIVERSITY OF CAMBRIDGE); Rok Spruk (UNIVERSITY OF LJUBLJANA) |
| Abstract: | This paper analyses the impact of “green regulations” - i.e. those aimed at mitigating the effects of climate change and environmental externalities - on innovation, using a novel regulatory database covering the period 008-2022 for Spain. The database identifies regulations at both the national and regional levels through textual analysis. Employing a panel data approach, we assess how different types of environmental regulations - particularly those related to renewable energy - affect firm-level innovation activities. Our findings indicate that national-level green regulations have a positive effect on innovation, whereas regional-level regulations show mixed or negligible impacts. Importantly, the interaction between national and regional regulations, measuring the simultaneous production of legal texts at both levels, can foster innovation but at a reduced pace with respect to the sole production of regulation at the national level. Given the results for regional-level regulation, our findings provide evidence in favour of the hypothesis that regulatory fragmentation due to unequal, overlapping, inconsistent or conflicting procedure across jurisdictions may diminish these benefits. |
| Keywords: | green regulation, innovation, Porter hypothesis, renewable energy, business |
| JEL: | K32 Q5 O44 O13 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:bde:wpaper:2611 |
| By: | Chloé Raffin (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris) |
| Abstract: | While the decarbonization of electricity is a central objective of French energy planning, the possible trajectories remain multiple and varied, particularly concerning the distribution between renewable energies and nuclear power. Each trajectory has macroeconomic impacts, particularly on employment. To address this issue, this article analyzes the impact of RTE power generation scenarios on employment in France, using the TETE input-output model and RTE cost assumptions. The results show that scenarios which tend towards a 100% renewable energy mix generate more jobs, and also require more investment. Thus, the lower number of jobs in the nuclear industry in these scenarios is more than offset by job creation due to renewables. This dynamic varies from region to region, and some will face challenges in terms of reorientation and professional training. Finally, a comparison with other studies using different methods confirms the obtained trends. |
| Abstract: | Si la décarbonation de l'électricité constitue un objectif central de la planification énergétique française, les trajectoires possibles demeurent multiples et variées, notamment en ce qui concerne la répartition entre les énergies renouvelables et le nucléaire. Chaque trajectoire a des implications macroéconomiques, en particulier sur l'emploi. Pour traiter ce sujet, cet article analyse l'impact des scénarios de production électrique élaborés par RTE sur l'emploi en France, en utilisant le modèle entrées-sorties TETE et les hypothèses de coût de RTE. Les résultats démontrent que les scénarios qui tendent vers un mix 100 % renouvelable génèrent davantage d'emplois, et nécessitent également des investissements plus importants. Ainsi, le plus faible nombre d'emplois dans le secteur nucléaire y est plus que compensé par la création d'emplois dans les filières renouvelables. Cette dynamique varie selon les régions et certaines devront faire face à des enjeux de réorientation et de formation professionnelle. Enfin, la comparaison avec d'autres études utilisant des méthodes différentes confirme les tendances obtenues. |
| Keywords: | renewable energies, nuclear, scenario, energy transition, employment, emploi, transition énergétique, scénario, énergies renouvelables, nucléaire |
| Date: | 2025–07–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05535447 |
| By: | Lidia Vidal-Melia; Eva Camacho-Cuena; Till Requate; Israel Waichman |
| Abstract: | We experimentally investigate how the timing of, and commitment to, an environmental regulation affects efficient technology adoption under emission taxes and tradable permits. An environmental regulator can either commit ex-ante to a specific policy level or ex-post to a rule on how to adjust the policy level after firms have decided whether or not to adopt an advanced low-emission technology. In a 2x2 design, we examine the performance of the four environmental policies (ex-ante vs. ex-post; tax vs. permits), all of which should theoretically lead to the social optimum. Indeed, we find that, in all scenarios, firms' adoption of advanced technology is close to the social optimum. Regarding static efficiency, the tax policy slightly outperforms the permit policy. However, the overall efficiency is very high in all treatments, suggesting that ex-post regulations do not necessarily hinder the adoption of low-polluting technologies. |
| Keywords: | technology adoption, emissions trading, regulator commitment timing, market design experiment |
| JEL: | C92 D44 L51 Q28 Q55 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12539 |
| By: | Cathrine Hagem; Snorre Kverndokk; Knut Einar Rosendahl |
| Abstract: | The EU Emissions Trading System (EU ETS) leads to higher electricity prices and thus higher costs for electricity-intensive industries in the EU, reducing their competitiveness compared to those in non-EU countries. This disparity may result in carbon leakage, where production shifts abroad, potentially increasing global emissions. To mitigate this, the EU introduced a compensation scheme in 2012, allowing member states to compensate affected industries for the higher electricity prices. This paper explores analytically and numerically the effects of this compensation scheme on production, electricity efficiency, and emissions. We find that while the EU ETS price signal reduces production and increases electricity efficiency, the compensation scheme can counteract these effects by boosting production and potentially reducing electricity efficiency. Additionally, conditional decarbonization or energy efficiency efforts may lead to socially inefficient investments and could have undesired impacts on electricity efficiency. These findings highlight the complex trade-offs in designing effective climate policies that balance environmental goals with industrial competitiveness. |
| Keywords: | climate policy, EU-ETS, CO2 compensation, electricity efficiency |
| JEL: | D21 H23 Q52 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12541 |
| By: | Rausch, Sebastian; Hornung, Mirko |
| Abstract: | Die Dekarbonisierung des Luftverkehrs stellt eine erhebliche Herausforderung dar und erfordert entschlossene politische Maßnahmen sowie starke Anreize für den Einsatz nachhaltiger Flugkraftstoffe (Sustainable Aviation Fuels, SAF). Derzeit kommen sowohl marktbasierte als auch regulative Instrumente zum Einsatz - etwa das europäische Emissionshandelssystem (EU ETS), die EU-weite SAF-Quote und das internationale Kompensationssystem CORSIA (Carbon Offsetting and Reduction Scheme for International Aviation). Eine neue ZEW-Studie zeigt: Die Marktstruktur und der Wettbewerbsgrad haben entscheidenden Einfluss auf die Kosteneffektivität klimapolitischer Instrumente. Unter Bedingungen des vollkommenen Wettbewerbs sind CO2-Steuern ein kosteneffektiver Weg, um Emissionen zu mindern. Haben Fluggesellschaften jedoch Marktmacht, sind SAF-Quoten vorteilhafter, da sie die Nachfrage stabilisieren und zugleich den Einsatz nachhaltiger Kraftstoffe fördern. Die klimapolitischen Maßnahmen der EU im Luftverkehrssektor sind geeignet, um Emissionen zu reduzieren. Ihre globale Wirkung bleibt jedoch begrenzt. Das stark steigende Passagieraufkommen treibt die Kosten für die Erreichung eines Netto-Null-Emissionswachstums erheblich und unterstreicht, dass internationale Maßnahmen sowie regulatorische Anreize für den Einsatz von SAF unverzichtbar sind. Sollten die im Rahmen von CORSIA verwendeten Offsetting-Zertifikate keine echten Emissionseinsparungen bewirken, besteht die Gefahr, dass die Abhängigkeit von fossilen Flugkraftstoffen fortgeschrieben und die Dekarbonisierung des Luftverkehrs verzögert wird. |
| Keywords: | Luftverkehr, Dekarbonisierung, EU-Klimapolitik |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewpbs:338262 |
| By: | Ilona Dielen (Université Côte d'Azur, CNRS, GREDEG, France; Université Paris-Est Créteil, ERUDITE, France); Patrice Bougette (Université Côte d'Azur, CNRS, GREDEG, France); Christophe Charlier (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | This study examines how the cartel of European truck manufacturers coordinated the timing of compliance with emission standards, generating additional air pollution without violating environmental regulations. Although firms formally complied with environmental law, collusion restricted competition over cleaner technologies, highlighting that anticompetitive agreements can have significant environmental and health consequences. First, we quantify the volume of particulate emissions attributable to cartel behavior by constructing two plausible counterfactual scenarios for truck fleet composition, identifying substantial excess emissions of approximately 119 thousand tonnes of fine particulate matter (PM2.5). Second, we estimate the health impact of traffic-related PM2.5 emissions on infant respiratory outcomes using a panel of 199 European subregions observed over an 18-year period. To address endogeneity concerns, we exploit exogenous variation in EURO emission standards through a shift-share instrumental-variable strategy. The resulting elasticity allows us to compute the number of infant respiratory hospital admissions attributable to the cartel under counterfactual competitive conditions. We estimate that earlier, competition-driven adoption of cleaner technologies could have reduced average yearly infant hospital admissions by 12–18 cases per 1, 000 births at the NUTS 2 level. |
| Keywords: | Air pollution; Truck cartel; Anticompetitive agreement; Environmental damage; EURO standards; European Commission |
| JEL: | I18 K21 L41 Q51 Q52 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2026-06 |
| By: | Katarzyna Chec; Bartosz Uniejewski; Rafal Weron |
| Abstract: | Electricity demand forecasts are crucial for power system operations. Market participants frequently rely on day-ahead predictions provided by Transmission System Operators (TSOs), but these can be systematically biased and - as recent studies report - may be improved using parsimonious autoregressive models. Despite the fact that many operational and economic decisions require well-calibrated uncertainty estimates, previous work has focused on point forecasts. The key question is how to derive accurate quantile and density predictions. Here we show that processing TSO forecasts with the Least Absolute Shrinkage and Selection Operator (LASSO) brings further accuracy gains and provides strong inputs for probabilistic forecasts. Drawing on ten years of data (2016-2025) from three European and North American power markets, we find that Generalized Additive Models for Location, Scale, and Shape (GAMLSS) deliver consistently better probabilistic performance than commonly used econometric and machine learning approaches. Together, these findings highlight how regularization and flexible distributional modeling can improve uncertainty quantification of electricity demand. |
| Keywords: | Electricity demand; Day-ahead market; LASSO; Probabilistic forecasting; GAMLSS |
| JEL: | C22 C45 C51 C52 C53 Q41 Q47 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ahh:wpaper:worms2601 |
| By: | Mario Liebensteiner; Johannes Paha |
| Abstract: | Chronic electricity shortages constrain growth and welfare in many developing countries, where load shedding rations demand. Intermittent renewables can ease shortages, but their effects depend on how infeed timing aligns with scarcity. Using high-frequency data from South Africa and an instrumental-variables strategy, we estimate the effect of wind and solar generation on electricity rationing. On average, an additional MWh of wind generation reduces load shedding by 0.28 MWh, while an additional MWh of solar generation reduces it by 0.40 MWh. Wind provides a more robust reliability contribution across the day, including the evening peak, whereas solar benefits are concentrated in daylight hours. Our estimates permit a welfare-based evaluation of renewable investment. We show that the implied reliability benefits exceed benchmark investment costs by a wide margin and are complemented by sizeable climate and local air-pollution co-benefits. |
| Keywords: | load shedding, renewable energy, rolling blackouts, South Africa |
| JEL: | L94 O13 Q41 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12540 |
| By: | Bourlès, Renaud; Laurent-Lucchetti, Jérémy; Rochet, Jean-Charles |
| Abstract: | More than a decade after COP21, carbon emission trajectories remain far above the 1.5° C threshold, due to lack of international consensus. Departing from cost-benefit approaches, we assess the maximum reduction in carbon emissions that could be accepted by all countries. We characterize the target-consistent mechanism that minimizes global emissions subject to the participation constraint of each country. The mechanism can be implemented either via a uniform carbon tax or as a cap-and-trade system. Calibrated to data from 69 countries, including GDP, carbon intensities, and observed tax rates, our model suggests — for our baseline scenario — that the maximum uniform carbon price politically acceptable for all countries is $250 per ton. It could reduce global emissions by 35%, but would require unprecedented international transfers: up to 3% of world GDP, with a large redistribution from high-income, low-emission countries to carbon-intensive emerging economies. Our analysis highlights the structural ambition gap imposed by voluntary cooperation and identifies two levers to overcome it: convergence in green technologies and stronger political support for mitigation. Without progress in these dimensions, international climate policy remains constrained to deliver only modest results. |
| Date: | 2026–03–12 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:131528 |
| By: | Pedraza, Alvaro; Williams, Tomas; Zeni, Federica |
| Abstract: | Although the climate impact of carbon abatement is geographically invariant, this paper documents limited geographic fungibility in voluntary carbon markets. Firms disproportionately retire offsets in countries where they operate. The paper contrasts an Information Channel, whereby local presence improves project screening, with a Goodwill Channel, whereby supporting local projects enhances reputational visibility. The evidence supports the latter. Offsets retired within firms’ operational footprints exhibit systematically lower project quality than those sourced abroad, revealing a negative local quality gradient. This pattern persists with firm experience and generates equilibrium price-quality decoupling: in jurisdictions with concentrated local demand, prices become less responsive to project quality. The resulting distortions can generate a “market for lemons” dynamic, reallocating climate finance away from high-abatement-potential regions toward areas with greater multinational presence. Strategic corporate incentives thus weaken the allocative efficiency of voluntary carbon markets. |
| Date: | 2026–03–16 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11331 |
| By: | Michael Finus (University of Graz, Austria; University of Bath, United Kingdom); Paolo Zeppini (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | We introduce the concept of green lifestyles in an economic discrete choice model of consumption behaviour. Agents behave in either a ‘selfish’ or ‘pro-social’ way by choosing different degrees of internalisation of environmental damage from the consumption of an environmentally harmful good. Pro-social behaviour means lower consumption, and is rewarded with warm-glow. Moreover, the agents’ decision is influenced by social norms, which endogenously depend on aggregate choices. The model is developed in a dynamic framework, allowing agents to switch behaviour. Our results show that conventional measures limiting consumption at an individual level may increase consumption at the aggregate level. We characterise social tipping points for sustainability transitions in terms of equilibria bifurcations and hysteresis of population dynamics. The model is extended in different directions, with different types of social influence and with a state dependent warm-glow. This more complicated decision environment gives alternative regimes with either dampening or self-reinforcing feedback in decisions. Three scenarios are identified: for strong social norms positive feedback leads to multiple equilibria. For moderate social norms there is a unique equilibrium. For weak social norms, we obtain periodic dynamics of behaviours. In particular, more informed choices and lower variability across agents are ‘destabilising’, leading to periodic dynamics or multiple equilibria. |
| Keywords: | discrete choice; social interactions; sustainable consumption; transitions; warm-glow |
| JEL: | C62 D62 Q56 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:gre:wpaper:2026-08 |
| By: | Lionel Fontagné (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique, PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris); Cristina Mitaritonna (CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Gianluca Orefice (Université Paris Dauphine-PSL - PSL - Université Paris Sciences et Lettres, CEPII - Centre d'Etudes Prospectives et d'Informations Internationales - Centre d'analyse stratégique); Gianluca Santoni (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris Sciences et Lettres - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris) |
| Abstract: | The average energy efficiency of the aviation sector has increased by 2.7 percent per year since 2012, falling short of the 6 percent increase in demand. Optimizing routes by reducing the number of legs per flight is one way to complement technological advances in aircraft and fuels to reduce aviation's environmental footprint. The signature of Air Service Agreements (ASAs) allows airlines to reorganize their flight routes. They reshape the international route network in a more efficient way and ultimately reduce CO 2 emissions per passenger. On the other hand, ASAs increase the demand for international flights, which may offset the reduction in overall CO 2 emissions by airlines. Using unique data on airline tickets and ASAs in force during the period 2012-2019, we show that the considerable reduction in per-passenger CO 2 emissions due to the re-organization of international flight routes induced by ASAs is overcompensated by the additional demand for less time-consuming and, hence, more comfortable international flights. |
| Keywords: | Air Service Agreements, Air Transportation, Environment |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:cesptp:halshs-05545525 |
| By: | Célia Escribe (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris, CMAP - Centre de Mathématiques Appliquées de l'Ecole polytechnique - Inria - Institut National de Recherche en Informatique et en Automatique - X - École polytechnique - IP Paris - Institut Polytechnique de Paris - CNRS - Centre National de la Recherche Scientifique); Philippe Quirion (CIRED - Centre International de Recherche sur l'Environnement et le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - EHESS - École des hautes études en sciences sociales - AgroParisTech - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENPC - École nationale des ponts et chaussées - IP Paris - Institut Polytechnique de Paris) |
| Abstract: | Energy efficiency and decarbonized energy sources are essential yet insufficient for meeting ambitious climate change mitigation goals. Sufficiency strategies, which involve reducing consumption and shifting to less environmentally impactful lifestyles, are increasingly recognized as crucial for decarbonization. However, their wider economic implications remain underexplored. This paper develops a static macroeconomic model with a detailed microeconomic production framework to analyze these implications. We derive comparative statics to unravel three primary propagation channels for consumption changes: direct demand effects, price effects, and substitution effects, based on the production network structure and elasticities of substitution. Using multi-regional input-output data, we assess the impacts of two sufficiency-driven consumption changes: adopting a vegetarian diet and reducing energy use. Our findings reveal significant rebound effects, up to 38% for domestic emissions and 60% for global emissions (accounting for carbon leakage), compared to estimates excluding behavioral aspects. Rebound effects from sufficiency strategies are smaller than those from energy efficiency improvements. Alternatively, conceptualizing sufficiency as increased leisure time preference results in reduced rebound effects and negative carbon leakage. |
| Keywords: | sufficiency, production networks, rebound effect |
| Date: | 2025–12–07 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05535445 |
| By: | Phoenix, Daniel M. (Virginia Tech) |
| Abstract: | Ecological modernization and ecomodernism assume that liberal democracies can address their ecological challenges. However, scholars seem to overlook that each rests on distinct theoretical assumptions and political programs. This paper compares the two approaches and analyzes their practical implications. Ecological modernization and ecomodernism embrace rationalist and reformist environmental politics to achieve absolute decoupling through Green New Deals. Ecological modernization calls for market-led precautionary innovation regulated by governments and supported by green consumerism. In contrast, ecomodernists advocate for state-driven proactionary and comprehensive innovation and are dismissive of demand-side policies. These differences point to three policy implications. First, the precautionary principle might need careful reconsideration to reconcile economic and environmental performance. Second, eco-innovation may require a stronger commitment from nation states to implement effective supply-side policies. Third, accelerated absolute decoupling requires promoting and setting rational consumption targets. Together, these implications involve dilemmas of technological and social innovation that liberal democracies should navigate to meet sustainability goals. |
| Date: | 2026–03–06 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:nv5f7_v1 |
| By: | You Wu (School of Economics, University of Sheffield, Sheffield S10 2TU, UK) |
| Abstract: | China’s New Energy Demonstration Cities (NEDCs) sought to develop affordable, clean energy. This study therefore examines the NEDCs’ effectiveness in mitigating energy poverty (EP). We focus on electricity consumption, economic development, and renewable uptake – three components of International Energy Agency’s (IEA) measure of EP. Using panel data from 281 Chinese cities (2011-2021) and propensity score matching with difference-in-differences, the analysis found no statistically or economically significant overall effect of NEDCs on reducing EP. This is also consistent across the three IEA sub-components. The findings suggest this ineffectiveness may stem from weak enforcement, low public participation, and inequalities in income and education. |
| Keywords: | Difference-in-differences; China; New Energy; Development Policy; Energy Poverty |
| JEL: | Q48 C23 P28 R11 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:shf:wpaper:2026001 |
| By: | Ströher, Tobias; Strüker, Jens; Konoval, Volodymyr |
| Abstract: | Power flow tracing (PFT) methods algorithmically reconstruct how electricity generators supply specific loads and contribute to network losses, enabling physically grounded attribution of electricity flows across a grid. Despite nearly three decades of research, the field lacks a unified conceptual framework that integrates academic and industry perspectives. In this paper, we address this gap by conducting a multivocal literature review (MLR) covering 52 academic and industry sources published between 2019 and 2025, and developing a taxonomy of PFT methods structured along six dimensions and 20 characteristics: input, output, tracing approach, application area, topology model, and level of analysis. Our analysis reveals that linear-equation-based methods embodying the proportional sharing principle dominate both academic and practitioner contexts, and that emissions attribution and renewable energy certification have emerged as the primary application areas, primarily driven by tightening sustainability reporting requirements. While PFT methodologies themselves exhibit considerable maturity, we find that limited data availability, granularity, and quality represent the central barrier to broader practical adoption. We discuss how digital technologies can support the measuring, reporting, and verification of electricity data to overcome these barriers, and propose a research agenda from a data perspective. Our taxonomy supports policymakers and grid operators in selecting suitable PFT methods for regulatory, technical, and operational contexts. |
| Keywords: | Electricity Pricing, Grid Management, Guarantees of Origin, MRV, Multivocal Literature Review, Power Flow Tracing, Scope 2 Emissions, Taxonomy |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bayism:338104 |
| By: | Könneke, Jule; Adolphsen, Ole |
| Abstract: | The fossil-fuel foreign policy of the United States under President Donald Trump has intensified the conflict between petrostates and electrostates in international climate politics. At COP30 in Belém in November 2025, this cleavage was particularly evident in the dispute over a roadmap for the Transition Away from Fossil Fuels (TAFF). While an increasing number of countries regard TAFF as a necessary consequence of the global energy transition, fossil fuel producers prevented any substantive progress being made. The conference highlighted the structural limits of the capacity of the United Nations Framework Convention on Climate Change (UNFCCC) to mediate this distributional conflict. As a result, the EU faces a strategic dilemma: to further politicise the COP process around TAFF or to prioritise the stabilisation of key mechanisms of the Paris Agreement. Whether it can overcome that dilemma will become apparent during the run-up to the next global stocktake, which is due at COP33 in India in 2028. |
| Keywords: | global warming, fossil-fuel foreign policy, Donald Trump, Transition Away from Fossil Fuels (TAFF), COP30, United Nations Framework Convention on Climate Change (UNFCCC), Global Goal on Adaptation (GGA), Tropical Forest Forever Facility (TFFF), Paris Agreement, Intergovernmental Panel on Climate Change (IPCC) |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:338233 |
| By: | Anthony Wiskich |
| Abstract: | Battery vessels (BVs) have been proposed to partially electrify long-distance shipping by connecting to ocean-going vessels at sea and recharging at port, ensuring frequent cycling of the battery. While previous work has examined their maritime economics, we quantify their system-wide effects in a detailed multi-regional capacity expansion model of the Australian east coast in 2050, under multi-year weather variability. BVs have two revenue streams of comparable value - powering ships at sea and temporal grid arbitrage - and can relocate between ports. Thus, they are deployed even at costs per MWh well above stationary batteries, lowering electricity system costs (-1.3%) and reducing renewable curtailment (-31%). As peaker gas generation and electricity-sector emissions are reduced (-12%), decarbonisation through partial ship electrification is reinforced by a cleaner electricity supply. |
| Keywords: | maritime economics, decarbonisation, electricity model, battery vessels |
| JEL: | Q41 Q42 Q47 R40 Q54 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2026-17 |
| By: | Rich Ryan; Nyakundi Michieka |
| Abstract: | The US economy is transitioning away from fossil fuels toward sources of green energy. California policymakers have adopted the goal of carbon neutrality by 2045 or earlier. Within California, Kern County accounts for over 70 percent of oil produced within the state. To understand how the transition may affect opportunities in Kern, we propose a structural vector autoregressive model the jointly explains the crude-oil market and the evolution of employment in Kern. We use monthly data from the Quarterly Census of Employment and Wages to measure employment. While industries directly involved in the extraction of fossil fuels employ less than 2 percent of workers, the oil market is responsible for 11 percent of the variation in employment growth. Employment in Kern would be currently 6.4 percent lower absent the influence of the global oil market. We explain these large effects using a theoretical framework of production that relies on a network of input-output linkages. The findings may be useful to policymakers designing place-based policy aimed at helping vulnerable oil-dependent regions. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2602.23462 |
| By: | You Wu (School of Economics, University of Sheffield, Sheffield S10 2TU, UK); Andrew Burlinson (School of Economics, University of Sheffield, Sheffield S10 2TU, UK) |
| Abstract: | China’s New Energy Demonstration City (NEDC) policy aims to address energy and environmental challenges. While two-way fixed effects (TWFE) regression is often used to evaluate such policies within difference-in-differences frameworks, it can lead to incorrect conclusions if unit and time effects are mis-specified. Re-evaluating the impact of the NEDC policy on energy poverty (EP), as studied in Ma et al. (2025), by correctly specifying unit-specific and time-specific effects, we find that: i) the parallel trends assumption fails, and ii) the previously reported impact on EP becomes economically and statistically insignificant. Whether NEDCs reduce EP therefore remains an open question. |
| Keywords: | Policy evaluation; Two-way fixed effects regression; Difference-in-differences; Energy Poverty |
| JEL: | C12 C23 Q41 Q48 |
| Date: | 2026–03 |
| URL: | https://d.repec.org/n?u=RePEc:shf:wpaper:2026002 |
| By: | Tueske, Annamaria; Lasheras Sancho, Marta |
| Abstract: | Over the past decades, a growing body of research has examined the structural and behavioral barriers that hinder firms from adopting cost-effective technologies to improve energy efficiency. In this paper, we draw on firm-level data from the EIB Investment Survey combined with energy efficiency regulatory indicators from the World Bank's RISE database to analyse two key strategic decisions: firms' likelihood of investing in energy efficiency, and the share of total investment allocated to such measures. Accounting for self-selection into energy efficiency investments, we find that financial constraints, particularly among SMEs, can limit firms' ability toundertake these long-term investments. Moreover, the share of investment allocated to energy efficiency is positively associated with the strength of a country's incentive-based energy efficiency regulatory framework. |
| Keywords: | Energy efficiency, firm investment, Europe, access to finance, regulation, green transition |
| JEL: | D22 L25 O33 Q40 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:338073 |
| By: | Lydia Papadaki; Ebun Akinsete (ICRE8); Alice Guittard (ICRE8); Phoebe Koundouri |
| Abstract: | A comprehensive, innovation-driven approach that incorporates policy frameworks, stakeholder collaboration, and adaptive governance is necessary for the sustainable development of the blue economy (BE). This chapter investigates the potential of systems innovation to resolve critical issues in the maritime sector, such as sustainable fisheries, offshore renewable energy, and marine tourism. It emphasises the significance of cross-sector synergies, data-driven decision-making, and multi-stakeholder engagement in the promotion of long-term sustainability. The chapter also identifies obstacles, including financial constraints, policy misalignment, and data fragmentation, that impede the widespread implementation of sustainable solutions. The chapter offers insights into strategies for accelerating the transition to a sustainable BE and enhancing resilience by examining successful case studies and innovation ecosystems. Key future directions include developing digital platforms for real-time data exchange, improving regulatory coherence, and expanding innovation hubs that bring together policymakers, businesses, researchers, and local communities. In conclusion, the chapter promotes a comprehensive transformation model that emphasises stakeholder-driven governance and systemic innovation as critical components of the blue economy's future. |
| Keywords: | Blue Economy, Systems Innovation, Participatory workshops, Stakeholder Engagement, Living Lab |
| Date: | 2026–03–16 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2611 |
| By: | Thomas Dulak; Guntram Wolff |
| Abstract: | Since the first green bond was issued in 2007, the market has expanded significantly and now accounts for around 3% of the global bond universe. Westudy the liquidity of green bonds. In particular, we are the first to investigategreen bonds’ daily trading volumes and frequency with a unique dataset fromEuroclear. Studying these dimensions of liquidity is particularly important in relatively small markets. Our dataset, covering the period 2020 to 2025, allows us todirectly compare green bonds with conventional bonds. We find that green bondsdo not suffer from a systematic liquidity disadvantage relative to conventionalbonds. On the contrary, they are traded in higher aggregate volumes, drivenby more frequent trading rather than by larger transaction sizes. These differences persist during periods of heightened market-wide stress. Within the greenbond universe, third-party certification is associated with higher trading volumesthrough more intensive trading when bonds are active, while green bonds funding more common project types are traded more regularly than bonds financingmore niche projects |
| Keywords: | Green bonds; Bond liquidity; Trading activity; Market stress; Certification |
| JEL: | G11 G23 Q56 |
| Date: | 2026–03–01 |
| URL: | https://d.repec.org/n?u=RePEc:eca:wpaper:2013/404323 |
| By: | Phoenix, Daniel M. (Virginia Tech); Hatzisavvidou, Sophia |
| Abstract: | Net-zero commitments have become the dominant instrument of climate and energy governance. Hence, energy transitions are increasingly shaped by state-authored visions that project, stabilise, and legitimise visions of the future. Energy social science has developed rich discursive approaches to study conflicts around energy systems, infrastructures, and projects. However, it has paid comparatively less attention to two elements. The first is studying how comprehensive net-zero policy visions are constructed upstream – that is, before implementation and contestation unfold. The second is to combine different qualitative methods to address a single phenomenon. This paper addresses both gaps. It analyses net-zero governance as a formative site of political and symbolic work, where ecological limits, economic priorities, and technological assumptions are assembled into a coherent vision of transformation. The paper introduces an integrative qualitative framework for energy research. It combines discourse analysis, rhetorical analysis, and LLM-assisted interpretation. It shows its applicability using the Spanish government’s net zero policy commitments and their parliamentary contestations as a case study. The analysis shows that Spain’s net-zero governance operates through a politics of managed consensus, in which layered discourses and rhetorical performances absorb contestation while deferring to the future the more radical implications of ecological limits. The paper also responds to calls for methodological pluralism in energy research by demonstrating it in practice. Beyond the case study, the findings help explain why net-zero governance in Europe, while designed to build consensus, may itself generate the conditions for backlash. |
| Date: | 2026–03–09 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:2f5en_v1 |