|
on Energy Economics |
| By: | Kässi, Otto; Wang, Maria |
| Abstract: | Abstract This policy brief analyses the level and structure of business support measures related to the green transition in Finland in a European comparative perspective. Finland ranks among the EU countries with the highest level of green transition support when business subsidies are measured relative to GDP. However, a high level of support alone does not indicate the steering or incentive effects of subsidy policy. A comparison with other EU countries shows that Finland’s support system places greater emphasis on cost-compensating instruments, whereas in many large member states support is more directly targeted at investment projects and technological transformation. The available empirical evidence does not so far indicate that the main Finnish support instruments have had significant effects on firms’ investment activity, productivity growth, or long-term competitiveness, despite their substantial fiscal cost. At the same time, assessing the overall impact of the support system is complicated by the fact that subsidies are concentrated on large and financially strong firms, for which suitable comparison groups are difficult to identify. The policy brief highlights that the central challenge of green transition support policy lies in the structure of support measures and in evaluating their effectiveness, rather than in the overall level of support. |
| Keywords: | Green Transition Subsidies, State Subsidies, Environmental Policy Funding, Industrial Policy |
| JEL: | H23 H25 H81 Q58 O38 |
| Date: | 2026–02–09 |
| URL: | https://d.repec.org/n?u=RePEc:rif:briefs:174 |
| By: | Cass, Leanne; Sato, Misato; Saussay, Aurelien |
| Abstract: | Steep declines in solar PV costs raise questions about whether, and how, to continue support. This paper analyses Scotland’s interest-free Home Energy Scotland (HES) Loan, which encourages household PV adoption by lowering borrowing costs and extending repayment periods, reducing upfront capital barriers. This type of instrument has a low fiscal cost but has been relatively under-examined in previous research on solar subsidies. Using a database of more than one million household PV installations in the UK over the period 2010–2021, the authors compare Scottish localities that have access to loans with similar English localities that are ineligible, before and after 2017, when the HES Loan was introduced. The results show clearly that the HES Loan increased household adoption of rooftop solar panels in Scotland, even though the country has relatively low solar potential, and shifted take-up towards smaller systems suitable for smaller properties. In terms of the distributional impacts across wealth groups, unlike previously examined policies including upfront rebates and Feed-in-Tariffs (FiTs), there were broad gains and relatively larger effects in lower-wealth areas and across urban and accessible-rural locations, yielding a less skewed wealth and geographical distribution of installations. The paper also examines the value-for-money for the government. The results consistently indicate positive welfare gains from the loan at modest fiscal cost. Overall, the paper provides robust evidence that interest-free loans can cost-effectively expand the uptake of household solar PV while promoting equitable access, complementing (and in some contexts outperforming) production-based support policies (i.e. those that subsidise households per unit of electricity produced by their solar panels). |
| Keywords: | renewable support policies; interest-free loans; residential PV; distributional impact; MVPF |
| JEL: | H22 H23 H81 Q42 Q48 Q58 |
| Date: | 2026–01–10 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137107 |
| By: | Baehr, Christian J. |
| Abstract: | An outstanding question in climate politics is how oil-exporting governments will respond to a global clean energy transition. I argue that persistent oil revenue shortfalls strain social contracts in oil-exporting states, compelling governments to enact targeted governance reforms under tightening fiscal constraints. I exploit the sudden emergence of the U.S. shale oil industry as an exogenous supply shock to examine how oil exporters adjust to sustained revenue declines. Using a difference-in-differences design, I find governments exposed to the shale revolution did not respond through broad political liberalization or public goods retrenchment and instead adopted targeted reforms. Systematic evidence on specific reform uptake and a case study indicate these reforms protected public goods provision and curtailed private capture, consistent with a political survival motive driven by rising mass public threats. The findings point to an asymmetric resource curse, in which oil shortfalls generate political responses distinct from those produced by windfalls. |
| Date: | 2026–02–11 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:pc5nz_v1 |
| By: | Pansong Jiang; Donglan Zha; Qian Chen; Jaume Freire González |
| Abstract: | The carbon rebound effect, a phenomenon that usually accompanies improvements in energy efficiency, is frequently observed in households. To mitigate the household carbon rebound effect, the removal of fossil fuel subsidies has emerged as a potential strategy. This paper aims to systematically simulate the consequences of removing such a subsidy to inform evidence-based policy-making. We develop an analytical framework that facilitates a detailed investigation of changes in the prices of various goods and services consumed by residents after the removal of fossil fuel subsidies, as well as the main sources of household carbon rebound effect (CRE). Moreover, we examine the extent to which the removal of fossil fuel subsidies can counteract the rebound effect. Our findings indicate that rebound-driven fossil fuel consumption is the primary contributor to the total CRE. Meanwhile, consumption in the 'residence' category is the dominant source of the indirect CRE. We further show that removing all fossil fuel subsidies could totally offset the CRE in Chinese households. A notable urban-rural heterogeneity is observed. The subsidy removal for oil and natural gas yields the strongest mitigation effect on CRE in urban regions, whereas removing the oil subsidy proves most effective in rural areas. These results affirm the effectiveness of policies to remove fossil fuel subsidies. We conclude that reforming fossil fuel subsidies is a powerful tool to counteract the CRE, offering valuable insights not only for China but also for other developing countries with similar household consumption patterns. |
| Keywords: | CO2 emissions, fossil fuel subsidies, household consumption, input-output price model, Rebound effect |
| JEL: | H23 Q41 Q54 R15 R21 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:bge:wpaper:1561 |
| By: | Ryan Singleton; Qazi Haque; Firmin Doko Tchatoka |
| Abstract: | The global transition to low-carbon energy has led many countries to adopt national hydrogen strategies, yet their policy impacts and adoption drivers remain poorly understood. This paper investigates these issues using panel data for 49 countries from 2010 to 2023. Policy impacts are assessed via a staggered difference-in-differences framework, while the determinants of adoption are analysed using a fixed-effects linear probability model. We find that adoption is associated with a sustained and economically significant increase in public hydrogen R&D spending, signalling credible government commitment, and a smaller rise in carbon capture, utilisation, and storage (CCUS) R&D, reflecting continued support for fossil-fuel-linked technologies. No short-run reduction in industrial process emissions is observed, suggesting that decarbonisation effects materialise gradually. Turning to the determinants of adoption, within-country growth in renewable electricity generation emerges as the strongest predictor of adoption, highlighting the interdependence between renewable expansion and hydrogen policy formation, while macroeconomic and political factors appear largely insignificant. These results shed light on the effectiveness and determinants of national hydrogen strategies in the global energy transition. |
| Keywords: | hydrogen policy, national hydrogen strategies, difference-in-differences, event study, policy adoption, energy transition |
| JEL: | C21 C23 O13 Q42 Q48 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:een:camaaa:2026-14 |
| By: | Mohamed Hajjaji (SPE - Laboratoire « Sciences pour l’Environnement » (UMR CNRS 6134 SPE) - CNRS - Centre National de la Recherche Scientifique - Università di Corsica Pasquale Paoli [Université de Corse Pascal Paoli], UTM - Tunis El Manar University [University of Tunis El Manar] [Tunisia] = Université de Tunis El Manar [Tunisie] = جامعة تونس المنار (ar)); Christian Cristofari (SPE - Laboratoire « Sciences pour l’Environnement » (UMR CNRS 6134 SPE) - CNRS - Centre National de la Recherche Scientifique - Università di Corsica Pasquale Paoli [Université de Corse Pascal Paoli]) |
| Abstract: | The European Union's ambitious target of achieving climate neutrality by 2050 necessitates a transition away from fossil fuels towards renewable energy sources. Hydrogen has emerged as a promising alternative, particularly as a fuel for large-scale transportation, including heavy-duty vehicles. The fleet buses in Ajaccio travel 1, 494, 007.9 km per year, responsible for 1453.67 tonnes of CO2 emissions annually. Utilizing green hydrogen, derived from renewable sources, can reduce these emissions by 87.3%. This paper conducts a comprehensive techno-economic analysis of a hydrogen refueling station, aiming to foster the adoption of this technology and gain widespread acceptance. Our objective is to determine the economic viability of a hydrogen station capable of producing 440 kg of hydrogen daily. The Levelized Hydrogen Cost (LHC) is found to be 6.95 €/kg over a 20-year lifespan with electrolyzers operating at a power of 4.5 MW. The total installation cost amounts to 22, 324, 617 €. Remarkably, the return on investment is realized in the 11th year of operation. Electrolyzers account for 46% of the system's total CAPEX and 29% of its OPEX, indicating that advancements in electrolyzer technology will play a crucial role in reducing production costs. Our findings underscore the economic viability of the hydrogen refueling station, with a compelling LHC value indicative of its cost-effectiveness. The successful return on investment within a relatively short timeframe highlights the project's potential as a financially sound and sustainable initiative. |
| Keywords: | green hydrogen, renewable energy, hydrogen buses, techno-economic, heavy mobility |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05483341 |
| By: | Sandra Batten; Stephen Millard |
| Abstract: | In this paper, we use a DGE model to examine the effect of the move to net zero in the United Kingdom on productivity. One argument is that the transition is likely to be productivity–reducing, as it will involve a move from more to less efficient means of producing. Alternatively, it could be argued that the transition will be productivity–enhancing, as the capital investment required to bring about this move leads to a rise in productivity, both within the specific "greening" industries and more generally via productivity spillovers to the rest of the economy. Our model enables us to examine how this potential trade–off varies depending on whether we look at the short, medium or long run. We find that the introduction of a carbon tax, applied to encourage the move towards net zero, reduced GDP and total hours worked, but since total hours fell by more than GDP, increased productivity. As electricity becomes more substitutable for petrol and gas, the effect on productivity becomes more positive as GDP recovers while total hours remain permanently lower than initially. Finally, our results suggest that unless investment in green technology leads to significant technological gains elsewhere, it is unlikely that the move to net zero will have a large effect on productivity growth above and beyond the direct effect resulting from the capital deepening that will be associated with it. |
| Keywords: | Climate Change, Dynamic General Equilibrium, Carbon Tax, Climate policy, Energy, Renewable energy |
| JEL: | Q28 Q38 Q43 Q48 Q58 E32 |
| URL: | https://d.repec.org/n?u=RePEc:nsr:niesrd:575 |
| By: | Tittor, Anne; Simon, Jenny; Kalt, Tobias |
| Abstract: | We are witnessing the rise of a global hydrogen economy characterised by uneven global geographies of energy, industrial production and extractivism. In this new landscape, large-scale hydrogen production is anticipated to develop in Global South countries with the goal of exporting it to the Global North to support their decarbonization and green industrialisation initiatives. Although some exporting countries in the Global South are pursuing plans for self-determined green industrialisation, there is a significant risk that these efforts may fail. Instead, it seems likely that once again extractivist patterns are reproduced and socio-environmental costs externalised to the Global South. Additionally, the debate about the material basis for so-called low-carbon hydrogen is undergoing a shift. While the initial focus had been on hydrogen production from renewable energy, now hydrogen based on fossil fuels with carbon capture and storage as well as from nuclear energy are gaining importance. Furthermore, fossil continuities continue to shape the emerging hydrogen economy even in cases where green hydrogen is prioritised. To analyse these contested and contradictory developments of the global hydrogen economy, we employ the concept of post-fossil extractivism and provide empirical evidence from the EU, Germany, South Africa, Namibia, Argentina and Chile. |
| Keywords: | Decarbonisation, extractivism, fossil fuels, green industrial policy, hydrogen |
| JEL: | B52 F18 F52 Q42 Q43 O13 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:ipewps:336776 |
| By: | Francisco, Kris A.; Basilio, Patricia Thea A. |
| Abstract: | Electricity subsidies serve diverse policy goals but pose significant fiscal, efficiency, and equity challenges. This paper focuses on the Philippines’ three major electricity subsidy mechanisms: the Universal Charge for Missionary Electrification (UCME), the Lifeline Rate, and the Senior Citizen Discount, situating their design and outcomes within a broader international evidence base. Recent empirical work from peer-reviewed journals and international organizations is synthesized to identify design features associated with improved efficiency and equity. The analysis emphasizes prevalent mechanisms such as increasing block tariffs, cross-subsidy mechanisms, time-variant pricing, and targeting approaches. A systematic review examines how these mechanisms perform across different contexts and assesses their transferability to the Philippine setting, considering the country’s institutional capacity, political economy constraints, and electricity market structure. Key findings highlight recurring design flaws, including pressures for fiscal sustainability, leakage and mis-targeting of benefits, and regressive distribution patterns, as well as effective practices such as targeted, transparent, and administratively feasible reforms that align subsidies with intended vulnerable groups. The paper concludes with implications for policy design, implementation, and future research directions, emphasizing the value of international lessons to inform fiscally sustainable and socially equitable electricity subsidies in the Philippines. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | Electricity Subsidies, Philippine Energy Market, Subsidy Reform |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2025-42 |
| By: | Navarro, Adoracion M. |
| Abstract: | This study examines the structural, regulatory, and institutional challenges facing the power transmission sector in the Philippines amid rapidly rising electricity demand and comparatively slow grid expansion. While electricity consumption grew by about 140 percent from 2003 to 2024, the growth of the transmission network lagged significantly, contributing to congestion, reliability concerns, and energy insecurity. Using a qualitative research approach, the study analyzes key documentary sources, including the transmission concession agreement, transmission development plans, regulatory filings, and regulatory decisions. The analysis situates the performance of the Philippine transmission sector within the context of economic theories regarding transmission as a regulated natural monopoly in liberalized power markets. It highlights gaps between theory and practice, particularly in regulatory practices, investment incentives, system operation, and risk allocation. The study identifies persistent issues such as project delays, regulatory lag in rate-setting, right-of-way constraints, weaknesses in ancillary services procurement, coordination failures among institutions, ownership and national security concerns, and increasing transmission congestion. The findings suggest that while private participation and performance-based regulation were intended to improve efficiency and investment, regulatory delays and uncertainty, as well as institutional frictions, have weakened incentives for timely and adequate grid expansion. The study concludes by drawing policy implications and proposing reforms aimed at strengthening regulatory capacity and credibility, improving coordination, aligning investment incentives with public interest objectives, and enhancing the reliability and resilience of the Philippine power transmission system. Comments to this paper are welcome within 60 days from the date of posting. Email publications@pids.gov.ph. |
| Keywords: | power transmission, liberalized power markets, grid regulation, return-on-rate base regulation, performance-based regulation, transmission investment, transmission congestion |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:phd:dpaper:dp_2025-57 |
| By: | Huang Zhenyu; Yuan Zhao |
| Abstract: | While ex-ante screening and static price caps are global standards for mitigating price volatility, Singapore's electricity market employs a unique dual-defense mechanism integrating vesting contracts (VC) with a temporary price cap (TPC). Using high-frequency data from 2021 to 2024, this paper evaluates this mechanism and yields three primary findings. First, a structural trade-off exists within the VC framework: while VC quantity (VCQ) suppresses average prices, it paradoxically exacerbates instability via liquidity squeezes. Conversely, VC price (VCP) functions as a tail-risk anchor, dominating at extreme quantiles where VCQ efficacy wanes. Second, a structural break around the 2023 reform reveals a fundamental re-mapping of price dynamics; the previously positive pass-through from offer ratios to clearing prices was largely neutralized post-reform. Furthermore, diagnostics near the TPC threshold show no systematic evidence of strategic bid shading, confirming the TPC's operational integrity. Third, the dual-defense mechanism exhibits a critical synergy that resolves the volatility trade-off. The TPC reverses the volatility penalty of high VCQ, shifting the elasticity of conditional volatility from a destabilizing 0.636 to a stabilizing -0.213. This synergy enables the framework to enhance tail-risk control while eliminating liquidity-related stability costs. We conclude that this dual-defense mechanism successfully decouples price suppression from liquidity risks, thereby maximizing market stability. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2602.12782 |
| By: | Willem THORBECKE |
| Abstract: | Artificial intelligence (AI) use and its energy requirements are skyrocketing. This paper finds that the market capitalizations of Amazon, Google, Meta, and Microsoft have increased by more than $500 billion above predicted values since ChatGPT was launched in 2022. Nevertheless they negotiate aggressively to lower energy costs and transfer electricity expenses to other ratepayers. Their appetite for energy is also met by burning fossil fuels including coal. This paper considers how to incentivize Big Tech companies to internalize the externalities associated with data center electricity use. It also recommends innovations that can reduce AI energy demand. These include using AI itself to save energy at data centers and in the production of batteries, steel, glass, hydrogen, ammonia, and copper. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26013 |
| By: | Layer, Kira; Gutmayer, Stephanie; Sandmeier, Thorben; Ringger, Jonas; Cermak, Jan; Fichtner, Wolf |
| Abstract: | Electricity generation as well as electricity demand are dependent on the weather and climate, and this dependency is expected to further increase in the future. Challenges in energy systems arising from this dependency can be studied using large-scale weather patterns (WPs). These WPs can help reveal the atmospheric drivers of the challenges, but there exist many different classifications of large-scale WPs. Although WPs are widely used in energy-related studies, to our knowledge, no systematic review has yet evaluated the applicability of weather pattern classifications to analyzing extreme events and variability in energy systems. In this study, we aim to fill this gap by reviewing and combining literature dealing with both WP classifications and weather-induced challenges in energy systems. A total of 69 studies are included, which use different classification methods to study weather-induced challenges on energy systems. Overall, most challenges to the energy system arise during blocking weather patterns. Furthermore, we find that stable large-scale WPs allow for better forecasts of wind power generation if combined with other predictors. This review reveals research gaps underscoring the need to consider the whole energy system, including demand and the electricity grid, not only the generation of wind power and photovoltaics. |
| Keywords: | weather patterns, weather regimes, high residual load events, energy drought, weather variability, forecasting, energy system |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kitiip:336809 |
| By: | Römer, Daniel; Rode, Johannes |
| Abstract: | In many countries, stronger climate action is becoming less of a priority. After moderate declines in recent years, support for the energy transition in Germany has grown slightly again. According to the KfW Energy Transition Barometer, 83% of households consider the energy transition to be important or very important, up from 82% last year. In contrast, the share willing to take action themselves has dipped slightly to 59%. Overall, 13.5 million households (33%) use at least one green technology – an increase of around 800, 000 households, or about two percentage points, on the previous year. Green technologies include for example heat pumps, photovoltaic systems and electric vehicles. Cost-effectiveness is crucial for uptake; rising fossil fuel prices under the EU-ETS2 could support future adoption. |
| Date: | 2025–10–01 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:159311 |
| By: | Corentin Jacquier (G2Elab-SYREL - G2Elab-SYstèmes et Réseaux ELectriques - G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Rémy Rigo-Mariani (G2Elab-SYREL - G2Elab-SYstèmes et Réseaux ELectriques - G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Vincent Debusschere (G2Elab-SYREL - G2Elab-SYstèmes et Réseaux ELectriques - G2ELab - Laboratoire de Génie Electrique de Grenoble - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes); Jean-Nicolas Louis (VTT - VTT Technical Research Centre of Finland); Silvana Mima (GAEL - Laboratoire d'Economie Appliquée de Grenoble - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - UGA - Université Grenoble Alpes - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - UGA - Université Grenoble Alpes) |
| Abstract: | Medium and low voltage distribution grids are at the core of the energy transition as they are expected to host a large share of renewables and flexible resources. Their modeling within decarbonization pathways is then of great importance in providing realistic future energy scenarios. This paper investigates different scenarios at the French national scale up to 2050 while varying the electricity demand, renewables installed in both transmission and distribution grids, and the considered flexibility technologies. The methodology relies on coupling a longterm energy model ( POLES) and an open-source short-term optimization framework (Backbone). POLES produces long-term decarbonization scenarios, while Backbone enables the optimization of the power system. Technical and financial impacts are studied through ten scenarios regarding produced energy, installed capacities, and investment costs. The results highlight the importance of the load demand modeling assumptions, even raising the question of the feasibility of high-demand scenarios. Also, results show that demand-side flexibility can significantly reduce the requirements in conventional storage technologies (up to 98 %). Distributed flexibilities, such as electric vehicle smart charging, are especially effective. Considering multiple types of distribution grids allows, in the end, to show that installing renewable generation at the transmission or distribution level only moderately influences global costs, with a minor advantage for centralization to limit reverse flows on transformers. The paper concludes with a comparison with other scenarios (drawn from up-to-date literature) and a discussion of the environmental footprint of these scenarios, both in terms of mineral resource consumption (raw materials) and land footprint. |
| Keywords: | Energy system modeling, Long-term scenarios, Flexibility, Distribution grids, Critical raw materials, Land footprint |
| Date: | 2026–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05507434 |
| By: | Fanny Henriet; Yannick Kalantzis; Matthieu Lemoine; Noëmie Lisack; Harri Turunen |
| Abstract: | Long-run benefits of transition policies are clear and well-documented in the literature, which shows huge economic losses in case of inaction. These policies also have medium-run consequences, which we study here. We use a new approach to model the impact on the French economy of a carbon tax in line with the CO2 emission reduction of Fit-for-55. Under the conservative assumption that there are no new clean technologies along the transition, we find that the long-term benefits of reducing carbon emissions implies some macro costs during the transition. In the short run, with unchanged monetary policy, inflation increases slightly due to the direct transmission of carbon taxes to prices. In the medium run, we find slower output growth, mainly driven by large real supply effects. <p> Les bénéfices à long terme des politiques de transition sont clairs et bien documentés dans la littérature, qui montre d’énormes pertes économiques en cas d’inaction. Ces politiques ont également des conséquences à moyen terme, que nous examinons ici. Nous utilisons une nouvelle approche pour modéliser l’impact sur l’économie française d’une taxe carbone en ligne avec la réduction des émissions de CO2 du paquet Fit-for-55 (ajustement à l’objectif 55). En faisant l’hypothèse prudente d’une absence de nouvelles technologies propres au cours de la transition, nous constatons que les bénéfices à long terme de la réduction des émissions de carbone impliquent des coûts macro pendant la transition. À court terme, à politique monétaire inchangée, l’inflation augmente légèrement en raison de la transmission directe de la taxe carbone aux prix. À moyen terme, nous constatons un ralentissement de la croissance de la production, principalement lié à d’importants effets d’offre réels. |
| Date: | 2026–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:426 |
| By: | Stelzer, Jonathan; Esser, Katharina; Weiskopf, Thorsten; Ardone, Armin; Bertsch, Valentin; Fichtner, Wolf |
| Abstract: | The transition to a net-zero energy system requires large-scale integration of variable renewables, increasing demand for flexibility beyond short-term batteries and seasonal hydrogen. Emerging storage technologies feature cost structures that position them between these options, offering discharge durations of several hours to a few days, here referred to as mid-term storage. However, their economic feasibility depends strongly on their techno-economic parameters and evolving market dynamics. Identifying profitable and robust storage configurations under uncertain future market conditions is therefore crucial to bridge the perspectives of technology developers and investors. We employ the agent-based electricity market model PowerACE, which explicitly represents market participants as interacting decision-making agents. Using mean-reverting stochastic representations of fuel prices and renewable generation, we capture the impact of uncertainties on storage profitability from an individual investor's perspective. The analysis determines the maximum capital expenditure that still yields economically viable storage configurations across relevant combinations of techno-economic parameters. The results reveal that profitability is limited under current cost conditions, as the marginal contribution of storage capacity declines sharply with higher storage durations. At the same time, higher round-trip efficiency not only improves returns but also reduces market risk. Balancing efficiency, costs, and duration is essential for mid-term storage competitiveness, while risk-based assessments can guide robust technology and investment decisions. |
| Keywords: | Energy storage, Electricity markets, Investment risk, Capital expenditure, Storage technology design, Mean-reverting processes |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:kitiip:336783 |
| By: | Psaltis, Charis; Loizides, Neophytos; Michael, Andreas; Ioannidis, Nikandros; Morgan Jones, Edward; Sudulich, Laura |
| Abstract: | The paper presents key findings from a public opinion survey and conjoint experiment with a representative sample of 800 Greek Cypriots, examining public attitudes toward natural resources co-management in the Eastern Mediterranean and the green transition in the context of the Cyprus Problem. It examines views on climate change, joint energy projects, political arrangements, and possible confidence building measures (CBMs) that could build trust between the two communities. The major finding of this research is that it identified potential peace packages accepted by a majority of the Greek Cypriot voters that include Cyprus-Turkey co-operation as part of a comprehensive settlement and wider regional co-operation on energy in the Eastern Mediterranean. |
| Keywords: | Cyprus; Cyprus Issue; energy cooperation; EasternMediterranean; conjoint experiment; bizonal bicommunal federation |
| JEL: | N0 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137247 |
| By: | Simon Mathex (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Lisette Ibanez (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier); Raphaële Préget (CEE-M - Centre d'Economie de l'Environnement - Montpellier - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Montpellier - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement - UM - Université de Montpellier) |
| Abstract: | A rebound effect occurs when an energy efficiency improvement results in less energy savings than expected. Usually, this phenomenon is attributed to a price effect, as improvements in the energy efficiency of a technology reduce its cost of use, thereby encouraging increased usage. Recent studies taking into account environmental preferences suggest that the rebound effect is not only due to a price effect. A behavioral phenomenon, called moral licensing effect, may also lead users of a more efficient technology (often less damaging to the environment) to feel less guilt to use it more, and thus to increase the rebound effect. We conducted a survey involving 1, 510 French households to explore the moral licensing effect in the context of heating behavior. First, we show that most people declare they would increase their heating consumption if it had a lesser environmental impact. Second, we show that wood heating is perceived as a heating fuel with less environmental impact than oil, gas and electricity. Based on these results we conclude that policies promoting wood heating as a more environmentally friendly energy source may indeed induce a moral licensing effect, leading people to increase their heating usage and potentially counteracting expected environmental benefits of wood heating. |
| Keywords: | Rebound effect, Moral licensing effect, Heating fuels, Wood heating, Survey |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05488755 |
| By: | Vespignani, Joaquin L.; Smyth, Russell; Saadaoui, Jamel; Wang, Yitian |
| Abstract: | We develop novel, stage-specific, geopolitical risk indicators to examine how geopolitical risk is distributed across the supply-chain for lithium and copper, two minerals which are vital for low-carbon technologies. We find that refining is the geopolitical bottleneck for both minerals, reflecting that refining capacity is highly concentrated in China. We examine refining diversification, strategic stockpiling, and AI-driven productivity gains as complementary policy instruments for mitigating exposure to geopolitical risk at the refining stage. We show that reducing China’s refining share substantially lowers refining-stage geopolitical risk, with larger gains for lithium than for copper. We find that stockpiling plays a critical role in buffering near-term geopolitical shocks, but significantly increases the projected shortfall in copper and lithium which is needed to realize the clean energy transition under alternative Net Zero pathways. We demonstrate that AI-driven productivity gains will be needed to narrow the projected supply gaps for both minerals. Our results suggest that ensuring effective security of critical minerals requires a coordinated policy mix, combining refining diversification, strategic stockpiling, and productivity-enhancing technological change. |
| Keywords: | Critical Minerals; Copper; Lithium; Geopolitical Risk; Refining bottlenecks |
| JEL: | C14 Q20 Q41 Q43 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127877 |
| By: | Brian Hanley; Pieter Tans; Edward A. G. Schuur; Geoffrey Gardiner; Adam Smith |
| Abstract: | We present an entirely new physics founded approach to estimating the social cost of carbon (SCC). For this, we developed our Ocean-Heat-Content Physics and Time Macro Economic Model (OPTiMEM) to estimate future heat content (separately published). The heat conjecture assumes that weather damages curves are stochastically proportional to ocean heat increase. We model carbon combustion, validate to datasets for greenhouse gas (GHG), temperature, and ocean heat content (OHC). We show that the social cost of 4 GHGs: CO2, CH4, N2O and halogenated hydrocarbons, cannot be single values, but must be represented by a kind of economic phase space. We propose very long-term carbon bonds to implement real discounting. This obviates the Gordian knot of the descriptivist versus prescriptivist discount disagreement that is unsolvable. Implementing these bonds leads to a new monitoring metric: real-dollar spending and bond discount rates compared to SC-GHG cost with variation on the discount scale, where the discount has no relationship to the pure rate of time preference (PRTP). This heat conjecture is based on OPTiMEM. OPTiMEM initiates from a fossil fuel consumption function to produce CO2, with 18 scenarios implemented to provide the uncertainty range. We provide 1:N year loss risk models (1:10, 1:100, 1:1000) that government, engineers, and actuaries should find useful. A scenario implementing DICE family of models carbon and growth assumptions shows +18{\deg} C is breached by 2210 CE, and +110{\deg} C by 2300 CE -- both of which outcomes are obviously not compatible with the fairly rosy conclusions of DICE models. Concerns are raised about having enough low-cost fossil fuel for conversion to minimal CO$_2$ maximal energy return on energy invested (EROEI) power if nations wait too long, and low EROEI power is questioned because monetary value is dependent on energy. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2602.03009 |
| By: | Camelo Vega, Ana |
| Abstract: | The global energy transition, essential for achieving climate goals and sustainable development, faces significant challenges, particularly in emerging markets and developing economies. These challenges include high capital costs, policy inconsistencies, debt burdens, and limited mobilization of private capital due to high perceived risks. This paper explores the importance of regional perspectives in overcoming these barriers, emphasizing how regional public goods, cross-border investments, and tailored financial mechanisms can drive scalable solutions. It provides a comprehensive assessment of regional contexts- highlighting opportunities and constraints in Africa, Asia and the Pacific, and Latin America and the Caribbean-and identifies the potential of innovative financial catalysts, namely blended finance. The analysis underscores the critical role of regional collaboration and financial innovation in fulfilling global commitments, such as the latest USD 300 billion pledge, and presents actionable recommendations for policymakers, international financial institutions, and private sector stakeholders to accelerate the energy transition equitably and effectively. |
| Keywords: | Sustainable Finance, Energy Transition, Cost of Capital, Emerging Markets, Regional Pathways |
| JEL: | Q01 Q40 F35 G23 O16 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iedlwp:336686 |
| By: | Roberto Zoboli (DISEIS and CRANEC, Università Cattolica del S. Cuore; Corresponding Fellow Accademia Nazionale dei Lincei; Sustainability Environmental Economics and Dynamics Studies (SEEDS)) |
| Abstract: | The paper addresses the role natural and environmental resources in armed and non-armed conflicts through a political economy approach. The analytical reading key is the classifications of economic goods —‘private’, ‘public’, and common goods or ‘commons’, renewable and non-renewable resources, tradable and non-tradable goods. The main hypothesis is that the economic attributes of resources as economic goods can inference the likelihood of observing conflicts or cooperation, especially at the international level. In the case of fossil resource - ‘private goods’, non-renewable, tradable – the likelihood of conflict is high, particularly in weak state contexts, through mechanisms such as resource rents and smuggling networks. Geopolitical factors, price fluctuations and strategic control, influence global conflict patterns and resource-based power struggles. However, the analysis underscores that fossil resource can also foster cooperation, however unstable, within the paradigm of ‘peace and trade’. In the case of water – ‘private good’ or ‘commons’, renewable, non-tradable - conflicts are often localized but cooperation prevails in transboundary contexts. Conflicts over water are relatively rare compared to cooperative arrangements, but climate change and the variability of hydrological regime are increasing tensions, particularly in regions dependent on rain-fed agriculture. In the case of climate – a ‘commons’, non-renewable when taking a Global Carbon Budget perspective, non-tradable when leaving aside emission trading systems – the paper highlight tow paradigms - the ‘fossil paradigm’ and the ‘climate change paradigm’ - that are clashing one another to gain the socio-economic and the ‘vision’ dominance of the world system. Key findings reveal that the persistence of fossil fuel interests and the strategic management of critical raw materials pose significant obstacles to a rapid energy transition and equitable climate governance. The analysis underscores that aligning climate policies with principles of shared governance and equity is essential for mitigating conflicts and advancing cooperation. As a general conclusion, non-renewable, tradable resources such as fossil fuels are more prone to conflict yet can also foster cooperation through the ‘peace and trade’ paradigm. Conversely, ‘commons’ like transboundary waters and climate can bring, because of their own economic nature, to global governance and peace-promoting processes. However, different types of tensions internal to cooperative governance can arise, and critical raw materials - ‘private goods’, non-renewable, tradable – can bring to new conflicts or, conversely, to cooperation through ‘peace and trade’ within the ‘climate change paradigm’. |
| Keywords: | Private goods, public goods and commons; Fossil resources; Oil; Water; Climate change; Critical raw materials; Conflicts and wars; Paradigm shift |
| JEL: | F02 F15 F18 O13 O14 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:srt:wpaper:0326 |
| By: | Miller, Hugh; Martinez Martinez, Juan Pablo |
| Abstract: | The energy transition and the increase in trade restrictions driven by geofragmentation present significant risks to critical mineral markets. This paper examines a subset of essential transition-critical minerals – aluminium, cobalt, copper, lithium and nickel – to assess how metal commodity markets may be impacted by shifting global economic dynamics. The study explores the key long-term drivers of commodity price formation, the medium-term effects of trade interventions on price expectations, and the short-term volatility triggered by trade announcements. The results indicate that metal commodity markets are primarily influenced by demand-related shocks, with copper and aluminium prices being primarily driven by aggregate demand, whereas nickel prices are influenced by a more diverse set of shocks. Similarly, in the short term, nickel, cobalt and lithium prices are more sensitive to trade announcements compared with copper and aluminium prices. The findings and discussion focus on the risks to the energy transition and financial markets. |
| Keywords: | aluminium; cobalt; commodities; copper; critical minerals; energy transition; lithium; metals; nickle; trade |
| JEL: | N0 R14 J01 |
| Date: | 2026–01–12 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137108 |
| By: | Andrés García-Suaza (Universidad del Rosario); Carlos Sepúlveda-Rico (Universidad del Rosario); Pamela Caiza-Guamán (Universidad del Rosario) |
| Abstract: | The green transition is expected to be one of the most significant forces shaping labor markets in the incoming years. As economies shift toward cleaner technologies, green jobs will expand, while employment in high-emission sectors will either decline or move into other sectors, depending on skill transferability and policy design. In this context, the ability of workers to transition between green and non-green jobs will be crucial to ensure a just labor market adjustment. Labor transitions into and out of green jobs remain understudied, particularly in developing economies where data constraints limit empirical analysis. This paper addresses this gap, using household survey data and a synthetic panel approach to estimate the probability of labor transitions employs a skills-based green index. The results reveal a high degree of labor market persistence, explained by the role of skills in shaping mobility, and show a wage premium of 10.6% for green occupations compared to their non-green counterparts. These findings have important policy implications for ensuring a just energy transition. Given the observed rigidities in green labor mobility, targeted upskilling and reskilling programs are important to enabling non-green workers to acquire the necessary skills for green jobs. |
| Keywords: | Labor mobility; Wage inequality; Just transition; Informality |
| JEL: | J21 J24 Q52 J62 |
| Date: | 2025–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:col:000092:022159 |
| By: | Picazo-Tadeo, Andrés, J. (Department of Applied Economics II, University of Valencia (Spain)); Melguizo, Celia (Department of Applied Economics II, University of Valencia (Spain)); Peiró-Palomino, Jesús (Department of Applied Economics II, University of Valencia (Spain)) |
| Abstract: | A key objective of the green transition is to minimise the environmental impact of human activity while ensuring sustained economic progress. Efficiently allocating policy resources requires accurately measuring this intricate relationship. Eco-efficiency indicators are useful tools for this purpose, offering valuable insights to policymakers by assessing territories’ potential to minimise environmental impact while maintaining economic performance. This research calculates eco-efficiency scores in terms of greenhouse gas emissions, a major cause of global warming, for European Union regions in 2023. The results reveal significant disparities between and within countries. Generally, the Nordic and Western regions rank among the best performers, whereas the Central and Eastern European regions are mostly among the weakest performers. In a second stage, the paper addresses the study of the determinants of regional eco-efficiency. Relevant factors fostering performance include economic development, government quality, and social capital. Conversely, large industrial sectors hinder progress towards the green transition. These results emphasise the need for place-based policy interventions that prioritise technological upgrading, industrial diversification and innovation to foster emission reductions that are compatible with sustained economic growth. Moreover, reinforcing governance quality, institutional effectiveness and social capital can enhance policy implementation and sustain long-term eco-efficiency improvements. |
| Keywords: | Eco-efficiency; European Green Deal; European Union; Greenhouse gases emissions; Green transition; regions |
| JEL: | C61 D62 Q54 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:eec:wpaper:2602 |
| By: | Simshauser, P. |
| Abstract: | From their inception, the energy-only electricity market design has been characterised by policymaker concerns of resource adequacy. Spot market price ceilings set too low and lacking a clear nexus with reliability criteria, capricious regulatory interference into otherwise legitimate scarcity pricing events, and a lack of demand-side participation are all thought to make the task of timely entry of requisite reserve plant intractable, and therefore 'un-bankable'. The manifestly random nature of peaking plant spot market revenues are said to have been amplified by the 'merit order effects' associated following the entry of near zero marginal cost intermittent renewables en-masse. Large structural LP utility planning models may produce reliable forecasts of market averages, but struggle to replicate ex ante what will be an energy-only markets' high-end volatility, ex post. The latter frequently underpins entry frictions facing peaking gas turbines. In this article, a stochastic block bootstrapping modelling framework is applied to Australia's energy-only National Electricity Market setting – where the spot market price ceiling does have a tight nexus with the reliability criteria. The market is also characterised by looming coal plant retirements. While reliance on spot market revenues proves problematic for bankability purposes, when combined with cap derivatives from the forward markets, a tractable result emerges. |
| Keywords: | Peaking Duties, Energy-Only Markets, Dispatchable Plant Capacity, Gas Turbines |
| JEL: | D52 D53 G12 L94 Q40 |
| Date: | 2025–11–30 |
| URL: | https://d.repec.org/n?u=RePEc:cam:camdae:2610 |
| By: | Driscoll, Daniel; Kiefel, Max; Larsen, Mathias |
| Keywords: | state capacity; industrial policy; international political economy; critical minerals; electric vehicles; climate change; geopolitics |
| JEL: | R14 J01 |
| Date: | 2026–02–04 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137142 |
| By: | Saadaoui, Jamel; Smyth, Russell; Vespignani, Joaquin L.; Wang, Yitian |
| Abstract: | This paper examines how geopolitical risk affects metal prices and stockpiling when demand is unevenly distributed across end uses. We develop a Theory of Use-Specific Storage Premia, which posits that demand concentration and limited redeployability raise effective storage costs and weaken the stabilizing role of inventories/stockpiling. Using deterioration in United States–China political relations as a shock to forward-looking demand expectations, we estimate price and inventory responses for metals with well-established markets. Broad-use metals exhibit significant price declines and precautionary stockpiling following geopolitical deterioration, while use-specific metals display muted responses. Cross-sectional evidence links these patterns directly to use-specificity. The results imply that traditional stockpiling is structurally less effective for battery-linked critical minerals subject to geopolitical risk. |
| Keywords: | Geopolitical risk; Critical minerals; Inventory and stockpiling; Energy transition; Commodity prices; Use-specific demand |
| JEL: | F52 Q31 Q41 |
| Date: | 2026–02–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:128022 |
| By: | Clotilde Grassart (CLERSÉ - Centre Lillois d’Études et de Recherches Sociologiques et Économiques - UMR 8019 - Université de Lille - CNRS - Centre National de la Recherche Scientifique); Adèle Sébert (REGARDS - Recherches en Economie Gestion Agroressources Durabilité et Santé - CRIEG - Centre de Recherche Interdisciplinaire Economie Gestion - MSH-URCA - Maison des Sciences Humaines de Champagne-Ardenne - URCA - Université de Reims Champagne-Ardenne) |
| Abstract: | Using meso-economic analysis from an industrial economics perspective, the article examines the conditions under which Associations pour la Mutualisation d'une Energie de Proximité (AMEP) emerged in France as a particular form of collective self-consumption within energy communities. A historical review of sectoral developments since the 20th century reveals the market and institutional regulations that have enabled the emergence of citizen actors in the electricity sector, as well as the intertwining of political, productive and technical dynamics in the emergence of new modes of electricity production, supply and consumption. The article thus highlights the logic of productive and political differentiation of AMEP with regard to industrial actors and with regard to other energy communities involved in structuring and disseminating this new model. |
| Abstract: | Dans une perspective méso-économique issue de l'économie industrielle, l'article revient sur les conditions d'émergence des Associations pour la Mutualisation d'une Énergie de Proximité (AMEP) en France, comme forme particulière d'autoconsommation collective au sein du paysage des communautés d'énergie. La lecture historique des évolutions sectorielles à l'œuvre depuis le XXe siècle rend compte des régulations marchandes et institutionnelles ayant permis l'irruption d'acteurs citoyens dans le secteur de l'électricité mais aussi de l'enchevêtrement de dynamiques politiques, productives et techniques dans l'émergence de nouveaux modes de production, fourniture et consommation d'électricité. L'article met ainsi en lumière les logiques de différenciation productives et politiques des AMEP vis-à-vis des acteurs industriels et des autres communautés d'énergie qui accompagnent la structuration et la diffusion de ce nouveau modèle. |
| Keywords: | collective self-consumption, mesoeconomy, solidarity, ecology, renewable energy, electricity, électricité, énergie renouvelable, autoconsommation collective, solidarité, mésoéconomie |
| Date: | 2026–02–06 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05501463 |
| By: | Pia Andres; Chiara Cavaglia; Sam Fankhouser; Ilya Ilin; Francois Lafond; Fulvia Marotta; Ralf Martin; Sandra McNally; Viet Nguyen-Tien; Alice Owen; Emilien Ravigne; Maxwell Read; Xiyu Ren; Misato Sato; Aurelien Saussay; Arjun Shah; Trang Thu Tran; Anna Valero; Guglielmo Ventura; Dennis Verhoeven; Francesco Vona; Golvine de Rochambeau |
| Abstract: | The transition to net zero can bring economic benefits - improving productivity and living standards while tackling climate change and this collection of briefing papers shows how. Pathways to productive and inclusive net zero brings together highlights of research carried out under the Productive and Inclusive Net Zero (PRINZ) programme. |
| Keywords: | Green Growth, UK Economy |
| Date: | 2026–02–13 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepsps:54 |
| By: | Moro, Alessandro; Zaghini, Andrea |
| Abstract: | Donald Trump's re-election and renewed exit from the Paris Agreement marked a deterioration in the US green bond market. Using a difference-in-differences approach, we estimate a 4.4-6.0 percentage point drop in issuance probability and a USD 20-28 million decline in monthly green-issuance volume per issuer. As a result, the share of green bonds in the US market dropped from 1.7 per cent in the pre-Trump period to just 0.6 per cent thereafter. At the same time, the greenium - the typically negative yield spread between green and traditional bonds with similar characteristics - turned from negative to positive. This change in the greenium, coupled with reduced issuance, signals weakened investors' demand for green assets, likely driven by both reduced environmental concerns and less optimistic outlook for environmentally-conscious firms. The impact of Trump's re-election and policies on green bonds was stronger in the US than in other markets, highlighting diverging trajectories in sustainable finance at the international level. |
| Keywords: | Sustainable finance, Green bonds, Greenium, Political shock, Trump's presidency |
| JEL: | G11 G12 G24 Q51 Q56 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfswop:336812 |
| By: | Yosr Ammar (UJML - Université Jean Moulin - Lyon 3 - Université de Lyon, MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon, IFGE - Institut Français de Gouvernement des Entreprises - EM - EMLyon Business School); Julien Cloarec (MAGELLAN - Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon, UJML - Université Jean Moulin - Lyon 3 - Université de Lyon, Iaelyon - Iaelyon School of Management - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon); Bertrand Valiorgue (CleRMa - Clermont Recherche Management - ESC Clermont-Ferrand - École Supérieure de Commerce (ESC) - Clermont-Ferrand - UCA [2017-2020] - Université Clermont Auvergne [2017-2020], EM - EMLyon Business School) |
| Abstract: | As technological advancements, artificial intelligence (AI), and climate change become increasingly intertwined, energy efficiency has emerged as a crucial issue for organizations and public authorities. This research examines how companies can align financial and environmental goals to attract diverse investor groups, focusing on AI-driven energy efficiency strategies. Using the Economies of Worth framework, we explore how investor behavior is influenced by AI adoption in energy management and varying accountability structures. Across four studies with 1, 500 investors, we find that environmental motivations can reduce investor willingness to invest, mediated by perceived energy efficiency. However, AI integration improves this relationship, particularly when paired with internal accountability mechanisms.Firms that adopt AI-based energy solutions, combined with appropriate accountability measures, are more likely to appeal to both traditional and impact-oriented investors. This study contributes to sustainable investment research by highlighting the critical role of AI and accountability in shaping investor perceptions of energy efficiency, offering practical insights for businesses balancing financial and environmental objectives. |
| Keywords: | accountability, artificial intelligence, sustainable investment, energy efficiency, Energy management systems, Energy management systems energy efficiency sustainable investment artificial intelligence accountability |
| Date: | 2025–07–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05470476 |
| By: | Andrés García-Suaza (Universidad del Rosario); Pamela Caiza-Guamán (Universidad del Rosario); Alexander Sarango-Iturralde (Université Paris I); Bernardo Romero-Torres (Universidad del Rosario); Catalina Buitrago (Universidad del Rosario) |
| Abstract: | The green transition represents one of the most significant transformational forces in the labor market in the coming years. This paper analyzes the incidence of green jobs in four Latin American countries using information from job vacancy data. The results reveal a low incidence of demand for jobs with green potential or for new and emerging occupations related to the green transition. Such occupations are characterized by requiring high levels of education and offer a significant wage premium. These results highlight the main challenge of the green transition, which lies in the need to implement training processes, while revealing opportunities for the creation of high-quality jobs in the region. |
| Keywords: | Labor demand; Green jobs; Green transition; Climate change; Skills |
| JEL: | J24 J62 Q52 Q58 |
| Date: | 2025–06–28 |
| URL: | https://d.repec.org/n?u=RePEc:col:000092:022158 |
| By: | Candeias, Teresa De Jesus |
| Abstract: | This paper investigates the legal challenges and potentialities arising from the implementation of smart contracts and blockchain technology in the oil industry. The research analyzes how these instruments may contribute to enhancing transparency, efficiency, and promptness in access to commercial data, as well as to simplifying regulatory compliance processes. Nevertheless, the study also examines the inherent limitations and risks of their adoption, including difficulties in contractual interpretation, the rigidity of pre-programmed rules, incompatibility with open-ended clauses, and the challenge of adapting to unforeseen circumstances. |
| Keywords: | Smartcontracts; Blockchain; Oil Industry; Petroleum Contracts; Upstream |
| JEL: | K12 K22 K23 K3 L71 |
| Date: | 2026–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127802 |
| By: | Bartzokas, Anthony |
| Abstract: | Emerging economies confront unprecedented challenges mobilizing finance for green industrial transitions while maintaining development trajectories. This paper examines implementation effectiveness across India, South Africa, Brazil, and Indonesia-major economies representing diverse political systems, economic structures, and policy approaches- documenting systematic gaps between stated climate commitments and realized outcomes ranging from 33% to 77% of stated targets. Through comparative analysis of policy frameworks, financing architectures, and sectoral dynamics spanning renewable energy, industrial decarbonization, sustainable agriculture, and just transitions, we reveal that aggregate capital availability constitutes only partial explanation. Firm-level financial constraints systematically structure which technologies firms can adopt constrained firms pursue incrementally cleaner but emission-intensive options, while only unconstrained firms access frontier low-emission technologies. This "pecking order" mechanism-predicted by recent theoretical work and validated across four diverse country contexts-generates three fundamental policy challenges. Three critical implications emerge. First, green credit must target frontier technologies precisely, yet such targeting creates politically challenging coverage gaps and exceeds institutional capacity. Second, blended finance exhibits fundamental tension between leverage maximization and genuine additionality. Third, just transition programs systematically underserve workers dependent on constrained firms unable to finance transitions. Looking forward, financing effectiveness will depend increasingly on institutional autonomy rather than merely capital costs: capacity to navigate fragmented global financial architectures, preserve infrastructure control, and maintain policy space as geopolitical competition intensifies and debt burdens rise. |
| Keywords: | green industrial policy, development finance, blended finance, financial constraints, just transitions, emerging economies |
| JEL: | O38 L52 O16 G28 Q58 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iedlwp:336698 |
| By: | Francisco Espinosa (Inclusión S.A.S); Juan Benavides (Fedesarrollo) |
| Abstract: | El gas natural ha sido, durante más de dos décadas, un pilar del bienestar social y la calidad de vida en los hogares colombianos. Su disponibilidad, seguridad y precio accesible han permitido ampliar la cobertura energética y reducir los costos de acceso a servicios esenciales como la cocción, el calentamiento de agua y la climatización, contribuyendo al bien-estar de los hogares; liberando tiempo de las labores domésticas, proporcionando formas seguras y saludables de cocinar y aumentando la funcionalidad de las viviendas. Sin embargo, el déficit creciente de oferta doméstica y la necesidad de suplir la demanda con gas importado elevan de manera sostenida los precios para los usuarios finales. Este encarecimiento tiene implicaciones directas e indirectas sobre el bienestar de los hogares, desde una aproximación monetaria: por un lado, aumenta el gasto en facturas de gas natural residencial; por otro, se traslada a los precios de bienes y servicios intensivos en el uso de gas natural como insumo —como los alimentos preparados, la elaboración de pan, los restaurantes y las manufacturas—, afectando el poder adquisitivo de los hogares.--------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- Esta nota cuantifica ambos canales de impacto monetario: (i) el efecto directo, asociado al mayor gasto de los hogares en la factura del servicio de gas natural, y (ii) l efecto indirecto, derivado del aumento en los precios de los bienes y servicios que utilizan gas como insumo productivo. |
| Keywords: | Gas; Gas Natural; Política Energética; Transición Energética; Crecimiento Económico; Política Pública Precios de Gas Natural Colombia |
| JEL: | L72 L95 O13 Q41 |
| Date: | 2025–11–24 |
| URL: | https://d.repec.org/n?u=RePEc:col:000124:022239 |
| By: | Qian, Jingye; Marín Díazaraque, Juan Miguel; Veiga, Helena |
| Abstract: | We develop a structural VAR with Threshold Stochastic Volatility (VAR-TSV) to study state-dependent transmission among climate conditions, energy prices, and industrial activity. The model combines volatility-in-mean effects with a threshold in log-volatility dynamics that generates discrete shifts between low- and high-volatility states, while keeping VAR propagation and contemporaneous identification unchanged across regimes. The threshold is an observed Low Economic Growth indicator that shifts the level of industrial volatility. We estimate the model in a Bayesian framework and apply it to monthly data for seven European economies (1970s to 2023, varying according to availability) using temperature anomalies, CPI inflation in energy and industrial production growth. Volatility-shock impulse responses and volatility-state-conditional connectedness reveal strong cross-country heterogeneity, with high resilience in Northern Europe, high sensitivity in Central Europe, and high persistence in Southern Europe. |
| Keywords: | Bayesian VAR; Climate uncertainty; Connectedness; Energy transition; Stochastic threshold volatility; Volatility-in-mean; Volatility regimes |
| JEL: | Q43 Q54 C11 C32 |
| Date: | 2026–02–16 |
| URL: | https://d.repec.org/n?u=RePEc:cte:wsrepe:49327 |
| By: | Jessica Clement (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: | Policies that aim to protect the environment have unintended consequences on marginalized communities. Often translating into increased pressures on such communities, these consequences may be linked to top-down decision-making practices that do not consider the preferences and priorities of the marginalized in society. In this chapter, the just transition (JT) policy processes are explored for Hainaut, Belgium. The elaboration of the Territorial Just Transition Plan has guided these processes and led to three axes for the JT in the region (industry, energy, and socio-economic). However, through interviews and multi-actor forums with marginalized communities, important "justice gaps" were identified. For each axis, decision-makers prioritized technical and innovation concerns over social ones, leading to unintended consequences for marginalized communities. Looking through a socio-technical lens, this chapter concludes that JT decision-making processes led to a technical decarbonization focus in the region, but without an accompanying social shift. Considering the perspectives of marginalized communities may help fill these gaps, account for the needs of the marginalized, and support leaving no one behind in JT processes. |
| Keywords: | Just transition, Marginalized communities |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05490286 |
| By: | Bell, Peter |
| Abstract: | This paper describes a methodology to compare historical episodes where governments announce policy changes that impact natural resources and extractive industries. For example, the Province of British Columbia implemented a new tax policy for mining in 1974 that created “super royalty payments” and drastically reduced local mining activity; this paper introduces statistical measurements to capture media attention, stock market effects, and GDP impacts of policy changes like the creation of super royalties in BC. These statistical measures can be compared between different historical episodes to understand the range of outcomes for government policy changes. The method also applies to logging, oil and gas, and agriculture, which are highly impacted by government policy. The paper identifies several historical episodes that can serve as case studies to use the methodology, although full implementation of the method is beyond the scope of this paper. |
| Keywords: | Government, Action, Natural Experiment, Methodology, Historical, Data Science, Mining, Oil, Forestry, Agriculture, Chile, Norway, Saudi Arabia, Canada, |
| JEL: | B5 C8 C80 C81 D6 E6 G0 G1 G17 H2 H23 H25 H5 K2 K23 L5 L7 L72 N5 O2 P11 P16 Q3 Q32 Q33 Q4 Q5 Y1 |
| Date: | 2025–12–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127298 |
| By: | Sara Ramírez; Carolina Silva (Fedesarrollo); Nicolás Montoya (Fedesarrollo); Sergio Cabrales (Fedesarrollo); Juan Benvides (Fedesarrollo) |
| Abstract: | El gas natural es indispensable para el funcionamiento eficiente de la actividad económica, especialmente en los sectores industrial y comercial, que dependen de este insumo para sus procesos productivos esenciales. Estos dos sectores representan el 67% de la demanda nacional de gas natural no térmica del país, y aproximadamente 29% del producto interno bruto. Los precios altos y las restricciones en la oferta de gas natural pueden generar importantes impactos negativos y sobre la economía. Además, esta situación podría llevar a que los usuarios vuelvan al uso del carbón, con un alto costo ambiental, o recurran a otros energéticos más costosos, como el gas licuado de petróleo (GLP) y el diésel. En esta nota técnica se estiman (i) los impactos de corto plazo del aumento del precio del gas natural en un contexto de menor producción local y de mayores importaciones sobre el crecimiento económico y la balanza comercial y (ii) los efectos de mediano plazo de un posible racionamiento de gas natural en el país. El análisis se concentra en la industria, el comercio, los servicios públicos, la minería y el sector agropecuario. |
| Keywords: | Gas; Gas Natural; Crecimiento Económico; Balanza Comercial; Servicios Públicos; Minería; Sector Agropecuario; Colombia |
| JEL: | L72 L95 O13 Q41 |
| Date: | 2025–08–19 |
| URL: | https://d.repec.org/n?u=RePEc:col:000124:022238 |
| By: | Phoebe Koundouri; Utku Demir; Ioanna Grypari; Dietmar Lampert; Lydia Papadaki; Charalampos Stavridis; Nicolaos Theodossiou; Haris Papageorgiou |
| Abstract: | Interdisciplinary and participatory approaches are necessary to address the complex challenges that climate change presents in various sectors, particularly energy, agriculture, and food production. In this paper, the methodology and results of the IntelComp Living Lab on Climate Change (LLoCC) in Greece, which was established as part of the IntelComp project and funded by the EU's Horizon 2020 programme, are presented. The LLoCC endeavours to facilitate evidence-based policymaking by employing artificial intelligence tools that analyse vast quantities of science, technology, and innovation (STI) data, utilising a Living Labs methodology that is rooted in real-world, user-driven co-creation. The study provides a comprehensive account of the stakeholder mapping and engagement process, the seminars that were conducted in the energy and agri-food sectors, and the iterative feedback that was employed to improve the STI Viewer and STI Participation Portal tools. The identification of priority policy concerns, sectoral innovation trends, and evaluation indicators, as well as insights on transparency, usability, and trust in data, are among the key outputs. The LLoCC demonstrates a collaborative model for aligning digital innovation tools with national climate policy requirements, supporting the work of Greece's High-Level Committee for Climate Change, by emphasising openness, empowerment, continuity, and practical relevance. |
| Keywords: | Climate Change, Living Labs, Artificial Intelligence for Policy, Stakeholder Engagement, Energy and Agri-Food Sectors |
| Date: | 2026–02–17 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2604 |
| By: | Sven A. Hartmann (Institute for Labour Law and Industrial Relations in the European Union (IAAEU), Trier University) |
| Abstract: | This paper analyzes the causal effect of exposure to uncensored environmental reporting on individuals’ environmental preferences and pro-environmental behavior. We exploit a natural experiment occurring in the German Democratic Republic, where geographic characteristics determined access to Western TV. Western media provided information on environmental pollution, a topic censored in East German state media. Using individual-level data from the German Socio-Economic Panel, we find a positive and persistent effect of Western TV exposure on environmental concerns and participation in environmental organizations. Complementing these findings, the analysis of county-level data reveals additional changes in pro-environmental behavior. Specifically, we show that Western TV induced GDR citizens to submit complaint letters on environmental issues to local authorities. Furthermore, regions with Western TV access exhibited stronger electoral support for the Green Party in the first two federal elections of reunified Germany. These results highlight the influential role of mass media in shaping both environmental preferences and corresponding behavior. |
| Keywords: | Television; Environmental preferences; Pro-environmental behavior; Natural experiment |
| JEL: | N54 P28 Q53 |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:iaa:dpaper:202601 |
| By: | Wu, Hangjian; Mentzakis, Emmanouil; Schaafsma, Marije |
| Abstract: | Air pollution is a globally recognised problem that causes premature deaths and economic loss. 95% of these premature deaths occur in developing countries, which often trade off investing in air quality improvement against economic growth. In these countries, economic growth may be prioritised by governments due to resource constraints, causing citizens to experience future air quality deterioration. Evidence from studies in developed countries suggests that social capital can be a potential impactful mediator urging the government to implement more pro-environmental policies. However, little empirical evidence exists for developing countries where environmental governance is often complicated by competing policy priorities. We investigated residents' preferences for clean air in Beijing, China, using a discrete choice experiment. In the experiment, attributes of air pollution were specified as either an improvement or a deterioration as a result of policy prioritisation. The effects of social capital (consisting of social trust, norms and networks) were examined by incorporating social capital indicators into a novel hybrid choice model. The results suggest that social capital was positively associated with individual preferences when air quality was projected to be improved (i.e., higher social capital leads to higher preferences for air quality improvement) as well as deteriorated (i.e., higher social capital leads to higher resistance to air quality deterioration). Our findings imply that in a society with high social capital, policymakers who prioritise economic growth at the expense of the environment are likely to cause considerable public welfare losses. |
| Keywords: | Air quality, discrete choice experiment, social capital, social trust, social norms, social networks |
| JEL: | D6 Q51 Q53 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iedlwp:336688 |
| By: | Brückmann, G. PhD (University of Bern); Torné, A.; Trutnevyte, Evelina; Stadelmann-Steffen, Isabelle |
| Abstract: | While climate scientists largely agree that we are in a severe climate crisis, political leaders around the world struggle with the drastic reductions in greenhouse gas emissions that are needed. The literature on public support indicates that this is often due to domestic distributive conflicts over short-term policy costs, especially for market-based policies. This study focuses on two regulation-based policy instruments (an obligation to retrofit building envelopes and a ban on new fossil-fuelled boilers) that target the same level of emissions reductions in the Swiss residential sector, but with different distributions of costs between tenants and homeowners. In a large-scale preregistered survey experiment (n= 1831), conducted in summer 2025, we inform respondents about the effectiveness of these policy instruments to assess public support. We experimentally manipulate whether distributive information (disaggregated by dwelling type (flat or house) and ownership type (owners or renters) is displayed and whether redistributive measures (policy exceptions or targeted subsidies) are included in the policy proposal. The results show that no redistributive measure can recover the drop in public support from providing the information on the policies' distributive effects. Notwithstanding, there is still a majority support for banning fossil-fuel boilers rather than retrofitting building envelopes. Additional subgroup analyses show that homeowners oppose the latter across all experimental conditions, including the control group. This indicates that homeowners are already aware of the costs for building envelope retrofits, before the experimental treatment can make policy costs salient through distributive information. As they are also unlikely to be more supportive when redistributive measures are implemented, a key obstacle persists. |
| Date: | 2026–02–09 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:bmcjy_v1 |
| By: | Ferreira, Thomas; Hoyle, Tristan; Horn, Aidan J.; Steenkamp, Daan |
| Abstract: | This paper explores the use of night lights to track economic activity in South Africa at a level of spatial granularity and periodic frequency not obtainable by traditional indicators. It shows mismatches between urban population density, economic activity and infrastructure. We show that satellite data suggest very low growth in night light intensity across South Africa over the last decade and a decoupling from economic and population growth. We show that satellite data sheds light on the implications of the collapse of state service delivery and South Africa's decline in GDP per capita over the last decade. The most likely explanation of the slow growth in night light intensity in South Africa is municipal infrastructural degradation, observed in the breakdown of a large proportion of streetlights. Other possibilities include a shift to solar and off‐grid electricity supply, the decline in industrial and manufacturing production in South Africa, or improvements in energy efficiency. However, the shift to more efficient lighting technologies does not explain why night lights has grown so much more in fast growing developing countries. These results reveal a lack of densification in urban areas that contribute to higher transportation costs and reservation wages, discriminating against job creation and efficient service provision. Our results raise questions about the depth of South Africa's structural slowdown, the ability of traditional indicators to fully capture shifts in spatial economic vibrancy, and the impacts of urban planning policies on economic efficiency and development. |
| Keywords: | night lights, satellite data, regional activity |
| JEL: | C55 R11 R12 |
| Date: | 2026–01–23 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:127824 |
| By: | McConnel, Caitlin |
| Abstract: | Since ratification of the Paris Agreement in 2015, the development of policy aimed at building climate resilience has largely focussed on holding the increase in global temperature average whilst making finance flow consistent with a pathway towards low greenhouse gas emissions and climate-resilient development; with buzzwords such as ‘ESG’, ‘net zero’, ‘climate-smart’ and ‘natural capital’ now common in day-to-day vernacular. Whilst the emergence of these terms has coincided with statutory obligations to report on sustainability initiatives or climate risks, as well as investment opportunities in renewable energy projects or alternative food production technologies, it is arguable that such terminology demonstrates a continued focus by government and business to value natural assets and food security through a numerical lens of economic growth and development. Although placing a numerical value on nature and food production can help promote innovation or incentivise environmental protection; it is a little-known fact that the Paris Agreement was entered into in pursuit of the United Nations Framework Convention on Climate Change (UNFCCC), which both reiterate that: • increasing our ability to adapt to climate change, foster climate resilience, and reducing greenhouse gas development must be done in a manner that does not threaten food production, and • when taking action to address climate change, parties must consider: • their respective obligations on human rights, and • the fundamental priority of safeguarding food security, food production systems, and Mother Earth. Furthermore, few decision-makers are aware that courts of law across multiple jurisdictions are now scrutinizing the alleged failures by government or business to consider the aesthetic and spiritual value of nature in the context of human rights through climate litigation; in a real-time convergence demonstrating the importance of returning to the first principles of ecologically sustainable development. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ags:cfcp25:391425 |
| By: | Jorge Ale-Chilet (UANDES - Universidad de los Andes [Santiago]); Cuicui Chen (SUNY - State University of New York); Jing Li (Tufts University [Medford]); Mathias Reynaert (TSE-R - Toulouse School of Economics - UT Capitole - Université Toulouse Capitole - Comue de Toulouse - Communauté d'universités et établissements de Toulouse - 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) |
| Abstract: | We study collusion among firms against imperfectly monitored environmental regulation. Firms increase variable profits by violating regulation and reduce expected noncompliance penalties by violating jointly. We consider a case of three German automakers colluding to reduce the effectiveness of emissions control technology. By estimating a structural model of the European automobile industry from 2007 to 2018, we find that collusion lowers expected noncompliance penalties substantially and increases buyer and producer surplus. Due to increased pollution, welfare decreases by €1.57–5.57 billion. We show how environmental policy design and antitrust play complementary roles in preventing noncompliance. |
| Keywords: | noncompliance, automobile market, pollution, regulation, collusion |
| Date: | 2026–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05492381 |
| By: | Rehmatulla, Nishatabbas; Iyer, Poorvi; Nameghi, Fatemeh Habibi |
| Abstract: | This paper examines the measures available to improve operational energy efficiency from the perspective of onboard crew, the barriers associated with implementing those measures and how crew behaviour can be nudged using incentives. A total of 25 semi-structured interviews and subsequent surveys with 42 onboard crew were carried out to gather qualitative information on two main domains: operational efficiency and incentive schemes. In-depth thematic analysis of interviews showed the central and recurring themes such as stakeholder hierarchy, autonomy and accountability, temporal restrictions, profitability and type of charter. Due to the heterogeneity in interview responses on the topic of incentives, online surveys were conducted. The findings of the study show that whilst speed reduction was seen as the single most important measure to optimise, it was also the most difficult to implement in practice due to several barriers. These include contractual obligations, a complex web of accountability and perverse incentives to increase speed. Other measures such as trim–draft optimisation and auxiliary engine load optimisation have smaller efficiency gains but were found to have more potential for increasing implementation through behavioural changes and encouraged through incentives. Both monetary and non-monetary incentives were perceived to be important and going beyond the status quo of incentivising captains so that rewards are shared equitably amongst the crew. Whilst not generalisable, preliminary findings suggest that there is room to consider alternatives to the current approaches on incentives, which do not take advantage of the importance of acknowledgment and recognition, as well as fostering positive interpersonal relationships. |
| Keywords: | shipping; energy efficiency; incentives; nudging; seafarer; behaviour; onboard; operations |
| JEL: | R14 J01 |
| Date: | 2026–02–03 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:137283 |
| By: | Sheheryar Banuri (University of Cambridge); Ha M. Nguyen (IMF); Ernest J. Sergenti (The World Bank) |
| Date: | 2025–12–09 |
| URL: | https://d.repec.org/n?u=RePEc:erg:wpaper:1810 |
| By: | Mehic, Adrian (Research Institute of Industrial Economics (IFN)) |
| Abstract: | How are preferences for innovation formed, and what determines the long-run direction of technological change? This paper shows that early-life exposure to environmental accidents can durably reorient inventive effort decades later, even in the absence of targeted policy. I study radioactive fallout from the 1986 Chernobyl nuclear accident across Sweden, exploiting plausibly exogenous variation in local exposure driven by rainfall. Combining municipality-level fallout data with Swedish patent records from 1967 to 2021, I find that more exposed areas experienced a persistent increase in green patenting, with no change in total patenting. The effect emerges only in the early 2000s, and is driven by individuals exposed during childhood: matching inventor-level data with detailed administrative records, I show that individuals exposed to fallout during their formative years are more likely to enter the patent system as green inventors and to begin their inventive careers with green technologies, consistent with a cohort-based entry mechanism. A simple model of directed technical change with formative exposure rationalizes these findings. In addition, the paper shows that green patents originating from more exposed areas do not have a lower number of citations than other patents, suggesting that the results are not driven by low-quality innovations. |
| Keywords: | Patent; Environmental accidents |
| JEL: | D91 O31 Q53 Q55 |
| Date: | 2026–02–16 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:iuiwop:1552 |
| By: | Pierre Bui Quang; David Nefzi |
| Abstract: | The environmental requirements of the SRI label were tightened in 2024. Following this reform, SRI funds redirected their investments towards less carbon-intensive securities. This contributed to reducing their footprint more rapidly than other funds, although other factors may also have played a role. However, this impact is necessarily limited by the fact that the SRI label takes into account other non-financial criteria in addition to the carbon footprint alone. <p> Les exigences environnementales du label ISR ont été revues à la hausse en 2024. À la suite à cette réforme, les fonds ISR ont réorienté leurs investissements vers des titres moins intensifs en carbone, ce qui a contribué à réduire leur empreinte plus rapidement que d’autres fonds, même si d’autres facteurs ont pu jouer. Pour autant, cet impact est nécessairement limité par le fait que le label ISR retient d’autres critères extra-financiers que la seule empreinte carbone. |
| Date: | 2026–02–13 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:econot:434 |
| By: | Javier Aliaga Lordemann (Investigador senior asociado de INESAD); Ronaldo Terrazas (Investigador Junior de INESAD) |
| Abstract: | La motivación de este trabajo es analizar la experiencia boliviana de 2010, cuando el intento por eliminar el subsidio a los carburantes fracasó y desencadenó un conflicto social y económico significativo. La situación actual, desabastecimiento de diésel y gasolina, producción nacional en declive y contrabando, agravan la vulnerabilidad sectorial. A ello se suman un déficit fiscal elevado, un diferencial cambiario y desalineamientos en los incentivos a la producción de hidrocarburos. Estos elementos combinados subrayan la necesidad de comprender en detalle lo ocurrido en 2010 para evitar repetir la improvisación y sus efectos sociales. El diagnóstico exige analizar las interacciones fiscales, cambiarias y sectoriales para proponer cualquier corrección de precios. |
| Keywords: | Subsidios a los carburantes, Modelo contable de cadena de valor, Modelo macroeconómico semiestructural, Spread cambiario, Contrabando de combustibles, Política fiscal, Política Energética. |
| JEL: | H23 Q41 Q48 E62 F31 O17 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:adv:wpaper:202510 |
| By: | Robert J R ELLIOTT; Wenjing KUAI; Toshihiro OKUBO; Ceren OZGEN |
| Abstract: | This paper examines how international engagements shape heterogeneity in the greenness of Japanese manufacturing firms. Using a new firm-level dataset, we construct intensity-based greenness indicators distinguishing between the greenness of market facing products and the greenness of more governance-driven production processes. Our empirical results are three-fold. First, green activity is widespread across Japanese manufacturing sectors but is predominantly process-oriented, with the greenest firms concentrated in a small subset of industrial activities. Second, greenness is not linked to internationalization in general, but to firms being embedded in global value chains (GVCs), particularly in Western oriented networks, and this association is stronger for green processes. Third, we identify a vulnerability whereby product greening does not attenuate tariff induced sales losses among internationally engaged firms, and green processes do appear to amplify tariff exposure, especially for GVC participants. Overall, the results highlight that going green is multidimensional and that environmental process compliance interacts with GVC integration in shaping firms’ resilience to trade policy shocks under a trend towards further geoeconomic fragmentation. |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:26018 |
| By: | Wim Naudé (RWTH Aachen University & University of Coimbra, CeBER) |
| Abstract: | This paper provides a non-technical and selective explanation of the theory of innovation and economic growth, in light of the 2025 Bank of Sweden Prize in Memory of Alfred Nobel, awarded to Joel Mokyr, Philippe Aghion, and Peter Howitt. Their body of scholarship is critically evaluated, and the useful, less useful, and most problematic aspects are highlighted. The verdict is that it is largely a collection of anthropocentric stories of innovation and growth. It avoids spelling out why sustained growth is desirable, it reduces innovation’s ultimate goal to the pursuit of economic growth, it is based on a deep-seated notion of human exceptionalism, and it promotes directed technical change - based on the assumption that all resources are fungible and can be substituted - as a way to sustain economic growth without causing environmental destruction. Their analysis of growth is useful for highlighting the importance of scientific knowledge, for showing that creative destruction can be more destructive than creative, and that economic growth will only be sustained under very special conditions. However, the failure to satisfactorily address energy in innovation and growth remains a glaring gap in modern economic growth theory. For economics to become more useful, it would require becoming an Earth Systems Science based on biocentric holism. |
| Keywords: | Innovation, economic growth, technology, sustainability, energy |
| JEL: | O31 O33 J11 J24 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:gmf:papers:2026-03 |
| By: | Matthew T. Cole (Department of Economics, California Polytechnic State University); James Lake (Department of Economics, University of Tennessee); Ben Zissimos (Department of Economics, University of Exeter) |
| Abstract: | International environmental agreements (IEAs) often condition entry into force on ratification by a minimum number of countries, yet deep environmental commitments frequently face strong domestic political resistance. We study how IEA breadth, through minimum ratification thresholds (MRTs), and depth are jointly determined when domestic ratification incentives are endogenous. In our model, lobbying competition between pro- and anti-environmental interest groups shape domestic ratification outcomes, and lobbying incentives depend on expectations about ratification in other countries. MRTs affect domestic political incentives by altering the pivotality of a country’s ratification for entry into force and the extent to which global emissions externalities are internalized. As a result, deeper agreements optimally feature lower MRTs: governments relax breadth requirements to offset endogenous domestic political resistance to more ambitious environmental commitments. Our analysis provides a political-economy foundation for the breadth–depth trade-off and offers a novel perspective on free riding that operates through domestic political effort rather than participation or enforcement mechanisms. |
| Keywords: | International environmental agreements, Miniumum ratification thresholds, Contest, Ratification, Lobbying, Domestic polictial economy, Breadth-depth trade-off, Free riding |
| JEL: | Q54 H41 D72 F53 |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:cpl:wpaper:2601 |
| By: | Roll, Stephan |
| Abstract: | Five of the world's most active and largest sovereign wealth funds are to be found in the Gulf Region: the Saudi Public Investment Fund (PIF), the Qatar Investment Authority (QIA) and the United Arab Emirates' Abu Dhabi Investment Authority (ADIA), Mubadala and ADQ. These funds not only serve to convert oil revenues into investment capital, thereby enabling the transition from rent-based to more diversified economies; they also contribute to expanding the foreign policy capabilities of the countries in which they are based. Institutional and personnel linkages enable the Saudi, Qatari and UAE governments to deploy their funds strategically, which, in turn, allows them to significantly expand their hard, soft, and sharp power - for example, through domestic and foreign investments in sectors such as armaments, media, sports and new technologies as well as through cooperation with politically influential actors. At the same time, the Gulf monarchies seek to portray their sovereign wealth funds as apolitical and purely profit-oriented - a narrative that is facilitated by the establishment of subsidiaries or cooperation with private equity firms. Understandably, Germany and its European partners have an interest in attracting sovereign wealth funds as investors, but they must not overlook the risks involved. These include third parties gaining access to critical infrastructure, sensitive military and security technology being leaked and the Gulf monarchies exercising political influence. Further, Germany and the EU must take a more fundamental look at how the three Gulf monarchies have increased their foreign policy options through the sovereign wealth funds. This is important as the actions of Saudi Arabia, the UAE and Qatar - at both the regional and international level - are at times contrary to German and European interests. |
| Date: | 2026 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swprps:336773 |
| By: | Alejandro Ome; Laura Giles Alvarez; Gerson Javier Pérez-Valbuena; Cristhian Larrahondo |
| Abstract: | This study analyzes the impact of natural resource funds (NRF) on municipal fiscal results in Colombia, using an instrumental variable approach. It specifically analyzed the case of the Oil Savings and Stabilization Fund (FAEP). The results suggest that a 1 percent increase in royalty revenue caused a 0.2 percent increase in gross capital formation (GCF) expenses and that this effect was cancelled out by FAEP participation. We also find that neither resource revenue windfalls nor participation in the FAEP had any impact on operating expenses nor on tax revenues, and that resource revenues have had impact on capital expenses other than GCF, but FAEP participation did not. Although we find that FAEP was indeed effective in reining in GFC expenses, the results suggest that other factors, such as subnational fiscal rules, could have had a strong effect on operating and other investment spending. Countries should thus consider a range of instruments to promote fiscal discipline and smooth out spending, including regulation and NRFs, in the face of natural resource revenue windfalls. **** RESUMEN: Este estudio analiza el impacto de los fondos de recursos naturales (FRN) en los resultados fiscales municipales en Colombia utilizando un enfoque de variables instrumentales. En particular, se examinó el caso del Fondo de Ahorro y Estabilización Petrolera (FAEP) de Colombia. Los resultados sugieren que un aumento del 1 por ciento en los ingresos por regalías provocó un incremento del 0, 2 por ciento en los gastos de formación bruta de capital (FBK), y que este efecto fue contrarrestado por la participación en el FAEP. También se encontró que ni los aumentos inesperados en los ingresos por recursos ni la participación en el FAEP tuvieron impacto en los gastos de funcionamiento ni en los ingresos tributarios. Aunque los ingresos por recursos sí afectaron los gastos de capital distintos a la FBK, la participación en el FAEP no lo hizo. Si bien se concluye que el FAEP fue efectivo para contener los gastos en FBK, los resultados sugieren que otros factores —como las reglas fiscales subnacionales— podrían haber tenido un efecto significativo en el gasto operativo y en otras inversiones. Por lo tanto, los países deberían considerar una variedad de instrumentos para fomentar la disciplina fiscal y estabilizar el gasto ante aumentos inesperados en los ingresos provenientes de recursos naturales, incluyendo la regulación y los FRN. |
| Keywords: | natural resource funds, local public finances, instrumental variables, fondos de recursos naturales, finanzas públicas locales, variables instrumentales |
| JEL: | Q32 H72 C36 |
| Date: | 2026–02 |
| URL: | https://d.repec.org/n?u=RePEc:bdr:region:339 |
| By: | Pénélope Nicolleau (MRM-MKG - Montpellier Research in Management - Marketing - MRM - Montpellier Research in Management - UPVD - Université de Perpignan Via Domitia - UM - Université de Montpellier); Francesca Bergianti (UNIMORE - Università degli Studi di Modena e Reggio Emilia = University of Modena and Reggio Emilia) |
| Abstract: | Research on emotions among young adults highlights anger and hope as key drivers of proenvironmental actions. Righteous anger, emerging from perceived injustices, fuels the desire for change and pushes individuals to seek reparations, while hope provides meaning and a vision of an achievable goal. Together, these contrasting emotions form a "moral battery" supposed to stimulate motivation to act, although their specific impact on sustainable behaviors remains little studied. This study examines the association of anger and hope in online discussions through a netnographic approach, focusing on young adults, known for their ecological sensitivity. Through content analysis of 28 Reddit threads on climate change, we identified central themes linked to these emotions. The study reveals parallels in the way anger and hope are expressed and interconnected, thus providing a basis for future research. Hope appears as a determining force able to conduct anger into constructive action, while in turn, hope is activated, fueled by a feeling of self-efficacy. By recognizing the emotional complexity of consumers and introducing hope as a counterbalance to eco-anger, this research could help companies and institutions more effectively promote sustainable practices and build authentic relationships with environmentally conscious consumers. |
| Abstract: | Les émotions, notamment l'espoir et la colère, sont reconnues comme des moteurs clés des comportements proenvironnementaux. La colère, traditionnellement vue comme négative, émerge des injustices perçues et alimente une force motivationnelle pour le changement, tandis que l'espoir est une base de l'engagement, lui donnant du sens. L'association de deux émotions opposées constituerait une « batterie morale ». A travers une approche netnographique du forum Reddit, cette étude explore les discussions sur la colère et l'espoir face au changement climatique. L'analyse de contenu de 28 fils de discussion révèle des parallèles dans la manière dont ces émotions sont liées à l'action et se nourrissent mutuellement. En reconnaissant la complexité émotionnelle des consommateurs et en introduisant l'espoir comme contrepoids à l'éco-colère, cette recherche pourrait aider les entreprises et les institutions à promouvoir plus efficacement des pratiques durables et des communications efficaces, et établir des relations authentiques avec les consommateurs soucieux de l'environnement. |
| Keywords: | Climate change, Sustainability, Netnography, Young adults, Moral emotions, Sustainable consumption |
| Date: | 2025–05 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05375314 |
| By: | Aleksandra Vujko; Darjan Karabašević; Aleksa Panić; Martina Arsić; Vuk Mirčetić (Assistant Professor, Faculty of Applied Management, Economics and Finance (MEF)) |
| Abstract: | Tourism is a key spatial process linking human mobility, resource consumption, and environmental change. Despite growing awareness of climate risks, sustainable travel behavior often remains inconsistent with pro-environmental attitudes, reflecting the persistent attitude-behavior gap. This study examines how psychological factors-sustainability motives, ecological identity, and climate attitudes-interact with artificial intelligence (AI) transparency to shape travel decisions with spatial and environmental consequences. Using survey data from 1795 leisure travelers and a discrete-choice experiment simulating hotel booking scenarios, the study shows that ecological identity and climate attitudes reinforce sustainability motives and intentions, while transparent AI recommendations enhance perceived clarity, data visibility, and reliability. These transparency effects amplify the influence of eco-scores on revealed spatial preferences, with trust mediating the relationship between transparency and sustainable choices. Conceptually, the study integrates psychological and technological perspectives within a geographical framework of humanenvironment interaction and extends this lens to rural destinations, where travel decisions directly affect cultural landscapes and climate-sensitive ecosystems. Practically, the findings demonstrate that transparent AI systems can guide spatial redistribution of tourist flows, mitigate destination-level climate pressures, and support equitable resource management in sustainable tourism planning. These mechanisms are particularly relevant for rural areas and traditional cultural landscapes facing heightened vulnerability to climate stress, depopulation, and uneven visitation patterns. Transparent and trustworthy AI can thus convert environmental awareness into spatially sustainable behavior, contributing to more resilient and balanced tourism geographies. |
| Keywords: | spatial decision-making, ecological identity, climate attitudes, tourism geography, resource management, rural destinations, cultural landscapes, trust, AI transparency, sustainable travel, sustainable travel AI transparency trust spatial decision-making ecological identity climate attitudes tourism geography resource management rural destinations cultural landscapes |
| Date: | 2025–12–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-05475497 |