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on Energy Economics |
| By: | Harstad, Bard (Stanford U); Holtsmark, Katinka (U of Oslo) |
| Abstract: | We analyze a fundamental dilemma and time-inconsistency problem facing a climate coalition producing natural gas. In the short term, it is tempting to export more to outcompete coal. When this policy is anticipated, however, investments in renewables fall and emissions ultimately increase. When the coalition cannot pre-commit, its policies will be counterproductive. We discuss the robustness of this result and possible solutions. If the coalition can invest directly in renewables, for instance, the incentive to maintain a high price on exports can mitigate the temptation to reduce the price to outcompete coal. Under certain conditions, the commitment outcome can be implemented. |
| JEL: | F18 H23 Q55 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:stabus:4205 |
| By: | Glenk, Gunther (U of Mannheim and MIT); Meier, Rebecca (U of Mannheim); Reichelstein, Stefan (U of Mannheim and Stanford U) |
| Abstract: | Companies in various industries are under growing pressure to assess the costs of decarbonizing their operations. This paper develops a generic abatement cost concept to identify the cost-efficient combination of technological and operational changes firms would need to implement to drastically reduce greenhouse gas emissions from current production processes. The abatement cost curves resulting from our framework further serve as a decision tool for managers to determine the optimal abatement levels in the presence of environmental regulations, such as carbon pricing. We calibrate our model in the context of European cement producers that must obtain emission permits under the European Emission Trading System (EU ETS). We find that a price of €85 per ton of carbon dioxide (CO2), as observed on average in 2023 under the EU ETS, incentivizes firms to reduce their annual direct emissions by about one-third relative to the status quo. Yet, this willingness to abate emissions increases sharply if carbon price were to rise above the €100 per ton of CO2 benchmark. |
| JEL: | M1 O33 Q42 Q52 Q54 Q55 Q58 |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:stabus:4202 |
| By: | Campiglio, Emanuele; Spiganti, Alessandro; Wiskich, Anthony |
| Abstract: | Access to finance is a major barrier to clean innovation. We incorporate a financial sector in a directed technological change model, where research firms working on different technologies raise funding from financial intermediaries at potentially different costs. We show that, in addition to a rising carbon tax and a generous but short-lived clean research subsidy, optimal climate policies include a clean finance subsidy directly aimed at reducing the financing cost differential across technologies. The presence of an endogenous financing experience effect induces stronger mitigation efforts in the short-term to accelerate the convergence of heterogeneous financing costs. This is achieved primarily through a carbon price premium of 39% in 2025, relative to a case with no financing costs. |
| Keywords: | carbon tax; endogenous growth; green financial policy; innovation policy; low-carbon transition; optimal climate policy; sustainable finance |
| JEL: | H23 O31 Q55 Q58 G18 |
| Date: | 2024–11–30 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:126063 |
| By: | Arth Mishra |
| Abstract: | The widening financing gaps for the Sustainable Development Goals (SDGs) and the Green Energy Transition in developing countries have established an impetus to mobilise foreign private resources for infrastructure. By developing a novel theoretical framework and leveraging a large dataset of infrastructure projects in developing countries from 1989-2022, this analysis investigates the role of Development Finance Institutions (DFIs) in indirectly mobilising private finance. Theoretical analysis demonstrates that DFI participation in a particular country-sector can catalyse private finance by specifically reducing the perceived risks of financing. Empirical analysis assessing the presence and magnitude of mobilisation effects at the extensive margin is consistent with theory on mobilisation. DFI participation is strongly correlated with an increase in the number of commercial foreign banks, total project activity, and the number of projects with at least one commercial foreign bank. Evidence suggests that this effect is amplified by DFI participation induced private financing acting as an independent signal for further private financing. However, the mobilisation effect does not seem to spill over across countries and sectors and does not extend to projects that are entirely financed by commercial foreign financiers. These findings suggest that DFI capital should target infrastructure segments with high growth potential, through project structures that resemble the conditions for private financing and contribute towards creating a pipeline of investable projects in those country-sectors. Immediate policy implications include improving data reporting on current and future projects to bolster demonstration effects and facilitate research on intensive margin mobilisation effects. |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:csa:wpaper:2023-13 |
| By: | Mirjana Miletic, Danilo Cerovic and Aleksandar Tomin; Mirjana Miletic (National Bank of Serbia); Danilo Cerovic (National Bank of Serbia); Aleksandar Tomin (National Bank of Serbia) |
| Abstract: | The aim of this paper is to examine the extent to which global factors – supply chain disruptions and rising oil prices – affect inflation in Serbia and other European countries, this being particularly important in the context of the ongoing episode of global inflation growth, which is largely a consequence of the outbreak of the Covid-19 pandemic, but also of the energy crisis and the conflict in Ukraine. The analysis was carried out using the panel method, whereby an estimation was made for 31 European countries considered together and separately for European advanced and emerging economies. The analysis was carried out for the period from Q1 2006 to Q2 2023 using the panel ARDL model and estimates were obtained using the PMG and DFE methods, as well as the asymmetric ARDL model, where the inflationary impact of the rise and fall in global energy prices and of the tightening and easing of supply bottlenecks was tested separately. The obtained results suggest that global supply chain disruptions have a statistically significant effect on consumer and producer prices in the long term, and global oil prices in both the short and long term (controlled for the influence of domestic factors). The link between inflation and supply bottlenecks has been confirmed for both advanced and emerging economies, as well as by various disruption indicators (the European Commission’s Business Climate Indicator, measuring the level of disruption specific to a country, and the Fed’s Global Supply Chain Pressure Index, gauging the intensity of global pressures), which indicates the robustness of the obtained estimates. When the asymmetric ARDL model is applied, a higher coefficient is obtained for the indicator of global supply chain disruptions (measured by GSCPI) when a negative shock occurs (their loosening) than in the case of a positive shock (tightening), which is a consequence of the significant drop in this indicator in the last three quarters of the period analysed. This suggests that the obtained result is not robust in relation to the period analysed, which is why, before drawing final conclusions regarding this part of the analysis, the model should be re-evaluated once data for a few more quarters become available. |
| Keywords: | inflation, global supply chain disruptions, energy, panel |
| JEL: | C32 C33 E43 |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:nsb:bilten:19 |
| By: | Righetti, Edoardo; Egenhofer, Christian |
| Abstract: | The European Union’s climate neutrality objective will require the progressive decarbonisation of the transport sector, including road. Targets and policies are lowering technology costs and accelerating the deployment of low-carbon vehicles. The rollout of a widespread and reliable refuelling and recharging infrastructure is a condition for these policies and technologies to succeed. In the context of the Alternative Fuels Infrastructure Regulation, the deployment of hydrogen refuelling stations is under discussion and soon to be agreed upon. Most studies predict a considerable number of hydrogen-fuelled vans and trucks, with demand for hydrogen-fuelled passenger vehicles continuing to be subject to debate. Current low market penetration of hydrogen-powered vehicles limits the profitability of the hydrogen refuelling infrastructure. Support mechanisms will be required to ensure stations’ profitability and sustain their deployment. Building on an analysis of the economics of hydrogen refuelling stations and an overview of support measures typically implemented in Europe and beyond in infrastructure development, this report focuses on the cost-effectiveness of instruments in a situation of initial low demand. It identifies mandates and availability payments as the most suitable instruments, allowing the mobilisation of private capital. |
| Date: | 2022–12 |
| URL: | https://d.repec.org/n?u=RePEc:eps:cepswp:38567 |
| By: | Righetti, Edoardo; Rizos, Vasileios |
| Abstract: | The uptake of strategic green and digital technologies will massively increase demand for critical raw materials (CRMs) over the coming years. CRM supply chains, however, are now heavily concentrated in a limited number of countries, with China holding significant market power. In the EU, this has raised legitimate concerns about its excessive exposure to CRM supply risks – all the more justified amid mounting geopolitical tensions. As a growing number of countries are coming to acknowledge these risks and adopt CRM strategies, the Critical Raw Materials Act was the EU’s response to these concerns. As the EU consolidates its CRM strategy, several realistic policy options emerge. Domestically, there is potential to produce both primary and secondary CRMs at scale, yet significant time and resources will be required to turn this potential into large-scale production. Mining operations still face a host of challenges, including lengthy permitting processes and public opposition, as well as a possible lack of specialised workforce and difficulty in attracting private capital. Overall, the absence of a comprehensive mapping of EU resources leaves a substantial degree of uncertainty as to the underground potential of the continent. Given the intrinsic limitations of domestic sourcing, the EU will need to consider a broader policy toolkit, especially in the short term. Material substitution and resource efficiency might play non-negligible roles, provided continued research and innovation efforts support the market uptake of alternative solutions. On the international front, both trade policy and international cooperation hold significant prospects for mitigating CRM supply risks. For the former, this entails lowering tariff and non-tariff barriers to CRM trade. For the latter, it means engaging in business-oriented strategic partnerships to channel know-how and capital into extra-EU production capacity. Multilateral fora such as the Minerals Security Partnership and the Critical Raw Materials Clubs promise to play an important role in coordinating global efforts. If properly managed, stockpiling CRMs can also help shield against short-term supply or price shocks. Building upon existing evidence and expert inputs, this CEPS In-Depth Analysis provides an overview of EU CRM supply risks and the options available for securing access to these resources. |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:eps:cepswp:41929 |
| By: | Rizos, Vasileios; Righetti, Edoardo; Kassab, Amin |
| Abstract: | Rare earth elements are strategically important for the EU to sustain and accelerate its green and digital transition, particularly due to their use in permanent magnets. Rare earths permanent magnets are critical components of low carbon technologies such as wind turbines and electric vehicles, but also home appliances and consumer electronics. Yet faced with an expected surge in demand, limited domestic manufacturing capacity, high import dependency and rising geopolitical tensions, the EU’s ability to meet the future demand for rare earths magnets is at risk. Recycling can help secure some of this demand. However, permanent magnets recycling is not yet developed at scale in the EU because of a combination of regulatory, financial, supply chain and technological constraints. Building upon the lessons learnt during the EU-funded INSPIRES project, as well as interviews with experts in the permanent magnets value chain and own quantitative assessments, this research report examines the major barriers hindering the establishment of a viable magnets recycling chain in the EU, whilst estimating the extent to which recycling could compensate the upcoming increase in rare earths magnets demand in the foreseeable future. Tacking stock of the analysis, the report suggests that introduction of product labelling requirements, the development of recycling quotas, the provision of financial support to recycling operations and the establishment of eco-design requirements. These are the critical actions that need to be implemented to ensure the development of magnets recycling in the EU. |
| Date: | 2022–12 |
| URL: | https://d.repec.org/n?u=RePEc:eps:cepswp:38613 |
| By: | Bach, Amadeus (U of Mannheim); Onori, Simona (Stanford U); Reichelstein, Stefan J. (U of Mannheim and Stanford U); Zhuang, Jihan (Stanford U) |
| Abstract: | The rapidly growing number of lithium-ion battery packs deployed in electric vehicles (EVs) entails enormous economic potential for used EV batteries to be redeployed in a second life application, e.g., for behind-the-meter stationary energy storage. To examine this potential, we develop a generic economic valuation model for used capacity assets in which second life usage requires repurposing costs and delays the receipt of recycling payoffs. Our model estimates point to a robust economic case for repurposing battery packs with iron-based cathodes (LFP batteries). Specifically, we project that the fair market value of LFP batteries exiting from electric vehicles generally exceeds 40% of the market value of a new battery. The value retention shares of used LFP packs are substantially higher in the U.S. market than in China, owing to the fact that new batteries are traded at higher market prices in the U.S. In contrast, our findings point only to a marginal economic case for repurposing batteries with nickel-cobalt-based cathodes (NCX batteries) in the context of the U.S. market. This finding reflects the relatively large recycling payoffs available from nickel and cobalt as well as the relatively short life cycle of NCX cathodes. For the Chinese market, we obtain the unambiguous conclusion that owners of NCX batteries are better off not incurring the requisite repurposing costs but instead immediately collecting the available recycling payoff. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:stabus:4203 |
| By: | Rizos, Vasileios; Urban, Patricia |
| Abstract: | Introduced as part of the new EU regulatory frameworks for ecodesign and batteries, the digital product passport (DPP) supports the collection and sharing of product-related data among supply chain actors. As the first tool of this kind globally, it aspires to address existing information gaps for products and components throughout global supply chains, thus becoming a key enabler for circular business models. Produced through the EU-funded BATRAW project that develops circular approaches for electric vehicle batteries, this CEPS In-Depth Analysis paper delves into the new EU regulatory framework for batteries and the expanding EU DPP landscape. It identifies key opportunities and challenges for battery passports based on qualitative data collected from companies at different segments of the battery value chain. There are a growing number of initiatives within the evolving EU DPP landscape that are developing proof of concepts or pilot cases. In addition to batteries for which the passport will be a legal requirement as of 2027, these initiatives include many other sectors including textiles, construction and electronics. This suggests that interoperability and alignment between the different DPP initiatives is important. Such initiatives can also facilitate multi-stakeholder collaboration and provide inspiration and lessons for other product groups beyond batteries. The qualitative empirical data suggest that the digital battery passport can help break down information silos among supply chain actors and support recycling and reuse processes. It also provides opportunities for increasing transparency about carbon footprint impacts across battery supply chains, whilst creating a level playing field with horizontal requirements for all supply chain actors irrespective of their origins. Simultaneously, several implementation challenges have also emerged. These include confidentiality concerns and the existence of data silos between battery supply chain actors, a lack of standards to ensure interoperability of data, concerns about reliability and the validity of collected data, and a lack of clarity regarding battery passport responsibilities at different end-of-life stages. The paper recommends that more clarity be provided about battery passport-related responsibilities, that passport data interoperability be supported, and that a platform be created for sharing best practices of battery passport initiatives. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:eps:cepswp:42379 |
| By: | Amadei, Claudia; Dosi, Cesare; Pintus, Francesco Jacopo |
| Abstract: | The decoupling of energy-related carbon emissions from economic growth has been mostly driven by reductions of the energy intensity of GDP, which can be attributed either to changes in countries’ economic structure or within-sector energy-efficiency improvements. One question is whether observed reductions in energy intensity may stem from shifts to less energy-intensive sectors without equivalent changes in consumption patterns, raising uncertainty on their true impact on global decarbonization. This paper aims to empirically investigate this mechanism in a panel of 15 OECD countries. First, using an Index Decomposition Analysis (IDA) including an offshoring factor, we show that structural changes in the production side have generally been unmatched with similar changes in consumption patterns. We then proxy a “demand-invariant structural change” in a Bayesian Structural Panel VAR model, by exploiting a novel measure given by the divergence between consumption-based and production-based carbon emissions. We find that shocks in this divergence measure are efficiently associated with demand-invariant structural changes and persistently and significantly reduce national energy intensity. Taken together, our results support the thought that caution should be taken when using production-based indicators to assess a country’s contribution to global carbon mitigation. |
| Keywords: | Climate Change, Environmental Economics and Policy, Sustainability |
| Date: | 2024–11–14 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:348101 |
| By: | Wendt, Charlotte; Kosin, Dominick; Adam, Martin; Benlian, Alexander |
| Abstract: | The growing adoption of smart meters enables the measurement of households' energy consumption, influenced not solely by building characteristics such as thermal insulation but also by residents' behavioural patterns, such as heating and ventilation practices. To motivate residents to adopt more sustainable behaviours, user interfaces on smartphones and laptops are increasingly using consumption data from households' smart meters to enable effective goal‐setting. In contrast to previous research largely focusing on goal‐setting in isolation, this study examines the role of specific social comparison‐related design features that future research and practitioners can consider along with goal‐setting to stimulate sustainable behaviours. Specifically, we look into the influence of residents' perception of their relative performance (i.e., whether their behaviour was better or worse than a reference group) on their ambition to act (i.e., targeted improvement goal) and their actual energy consumption behaviour. Moreover, we investigate the influence of a goal's evaluative standard (i.e., whether the goal refers to one's own or other's performance) on the relationship between relative performance, ambition to act, and energy consumption behaviour. Drawing on social comparison theory, we conducted a framed field experiment with 152 households. We find that a goal's evaluative standard influences residents' awareness of their relative performance, affecting their ambition to act and, ultimately, their energy consumption behaviour. More specifically, we find that whereas other‐ (vs. self‐) referencing goals encourage residents from worse‐than‐average performing households more strongly to improve their energy consumption behaviour, they discourage better‐than‐average ones. Overall, our study provides novel insights into the interplay between relative performance and evaluative standards as a means of fostering social comparison in smart meter‐facilitated goal‐setting, highlighting their crucial role in effectively supporting sustainable behaviours. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:dar:wpaper:150457 |
| By: | Gunther Maier; Katarzyna Reyman; Micha Guszak |
| Abstract: | Real Estate is one of the key sectors when it comes to the development toward sustainability. National and international policy as well as the market request buildings to be sustainable. The complexity of buildings and their durability make it difficult, however, to determine their degree of sustainability as well as to demonstrate it to potential buyers. Green building certification schemas were developed as instruments to measure sustainability of buildings and as instruments for third party verification of building quality in this realm.In this paper we want to investigate the diffusion process of certified green buildings in Europe. We will look at the diffusion over space and over time for the most important international certification schemas. We will try to identify leaders and laggers in the process at the levels of countries, regions, and cities. Since this is exploratory work, we will try to derive hypotheses about the reasons for certain observable patterns. These should serve as the basis for future more detailed research. |
| Keywords: | diffusion; Europe; Green Buildings |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-225 |
| By: | Ghosh, Surajit (International Water Management Institute); Holmatov, Bunyod (International Water Management Institute); Rajakaruna, Punsisi (International Water Management Institute) |
| Keywords: | Greenhouse gas emissions; Estimation; Hydropower; Reservoirs; Climate change mitigation; Sustainability; Frameworks; Bibliometric analysis; Policies |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:iwt:bosers:h052593 |
| By: | Fricke, Daniel; Meinerding, Christoph |
| Abstract: | The average yield differential between a green and a matched conventional bond ("greenium") amounts to minus 3 basis points. We decompose this greenium along the bonds' ownership structure and document that investment funds, banks and insurance companies pay most of it. Dissecting further, the greenium paid by investment funds (and their clients) is mostly explained by an average level effect, confirming the narrative that these investors have non-pecuniary sustainability preferences. The greenium paid by banks is markedly different and cannot be explained by such preferences. Rather banks overweight specific green bonds with a sizeable greenium, pointing towards an interaction between the greenium and bank-related financial frictions. |
| Keywords: | Green bonds, sustainable investment, greenium, ownership structure, securities holdings |
| JEL: | G11 Q01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:bubdps:305279 |
| By: | Moustafa Feriga; Mancy Lozano Gracia; Pieter Serneels |
| Abstract: | This paper identifies five areas where climate change may impact work and draws lessons for developing countries by reviewing the evidence. Firstly, demand for labor is unevenly affected, with agriculture, heat-exposed manufacturing, and the brown energy sector experiencing downturns, while other sectors may see a rise, resulting in an uncertain overall impact. Secondly, climate change impacts labor supply through absenteeism, shirking, and altering work-time patterns, depending on the activity and sector. Thirdly, productivity may decline, especially in heat-exposed industries, primarily due to health reasons. Fourthly, heightened earnings variability likely increases vulnerability among the self-employed. Fifthly, climate change can influence labor allocation and catalyze sectoral reallocation. Higher temperatures are also linked to increased migration. But caution is needed in interpreting these findings, as studies across these topics predominantly use fixed effect estimation and concentrate on short-term impacts, neglecting adaptation. Emerging research on adaptation indicates that workplace cooling is unappealing for firms with narrow profit margins, while coping strategies of farms and households have unclear optimality due to adoption barriers. Government responses remain understudied, with six potential areas identified: green jobs, green skills, labor-oriented adaptation, flexible work regulation, labor market integration, and social protection. The paper concludes by outlining future research directions. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:csa:wpaper:2024-02 |
| By: | Timothé Beaufils; Joschka Wanner; Leonie Wenz |
| Abstract: | The European Union (EU) is implementing a Carbon Border Adjustment Mechanism (CBAM) at its borders, which will require exporters of basic materials to surrender emission permits when exporting to the EU market. Since it makes foreign producers compete under a carbon price, the EU CBAM may motivate some trade partners to implement their own carbon pricing mechanisms, thereby encouraging the creation of a coalition of countries with ambitious carbon pricing policies protected by a joint CBAM. Such geostrategic potential of the EU CBAM has been identified in previous literature, but the conditions under which it could be realised remain largely unknown. Here, we present a modelling framework to simulate the potential of CBAMs to motivate the creation of climate coalitions. We use a fully interlinked New Quantitative Trade model to evaluate the pay-offs of a dynamic club negotiation model. Compared to previous research, our approach allows for a more granular definition of climate policies and requires relatively little input data and numerical power. This allows us to explore the formation and stability of climate coalitions under a broader range of CBAM implementation options. Our results highlight that the potential of a CBAM-based climate coalition strongly depends on the exact CBAM design. In its current version, the EU CBAM would only trigger the formation of a modest coalition. Future extensions of the EU CBAM could motivate the adoption of carbon pricing in all countries except China, India and Russia. Meanwhile, export rebates shrink its coalition-building potential. |
| Keywords: | Carbon Border Adjustment, climate policy, international trade, climate cooperation, climate clubs |
| JEL: | C68 F18 Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11429 |
| By: | Qiulin Ke |
| Abstract: | The benefits of cycling as a sustainable transportation mode are widely recognized. In recent years, the concept of commuting by bike has gained considerable attention. Cycling to work brings a multiple benefits for individuals, employers and the environment from improving physical health, wellbeing, productivity and public health to reducing carbon emissions. Governments in many countries have implemented a variety of policy measures, intervention and initiatives to increase the cycling level. Some cities and town encouraged workplaces to provide bike-friendly amenities such as secure bike parking/storage, showers, and changing rooms (called end of trip facilities) to accommodate cyclists and motivate more employees to embrace sustainable transportation options. At the same time, such amenities are identified to influence cycling behavior and deter the people from cycling to work. Given the desirability for these amenities, the number of the office building with bike storage and share room is small; their economic value is unknown. In this paper, we investigate whether presence of cycling to work supportive facilities could add value to office buildings. This study uses office buildings across the England at the end of 2021, we examine with hedonic technique:1. Whether the office buildings with bike storage and/or shower facility could secure rent premium; 2. Whether the existence of rent premium for bike storage and/or shower varies in location and across regions in England and independently from the premium for BREEM certificate. |
| Keywords: | bike storage; cycle to work; rent of office building; shower room |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-224 |
| By: | Eric Pilling; Martin B\"ahr; Ralf Wunderlich |
| Abstract: | The optimal control of sustainable energy supply systems, including renewable energies and energy storages, takes a central role in the decarbonization of industrial systems. However, the use of fluctuating renewable energies leads to fluctuations in energy generation and requires a suitable control strategy for the complex systems in order to ensure energy supply. In this paper, we consider an electrified power-to-heat system which is designed to supply heat in form of superheated steam for industrial processes. The system consists of a high-temperature heat pump for heat supply, a wind turbine (WT) for power generation, a sensible thermal energy storage (TES) for storing excess heat and a steam generator for providing steam. If the system's energy demand cannot be covered by electricity from the WT, additional electricity must be purchased from the power grid. For this system, we investigate the cost-optimal operation aiming to minimize the electricity cost from the grid by a suitable system control depending on the available wind power and the amount of energy stored in the TES. This is a decision making problem under uncertainties about the future prices for electricity from the grid and the future generation of wind power. The resulting stochastic optimal control problem is treated as finite horizon Markov decision process (MDP) for a multi-dimensional controlled state process. We first consider the classical backward recursion techniques for solving the associated dynamic programming equation for the value function and compute the optimal decision rule. Since that approach suffers from the curse of dimensionality we also apply Q-learning techniques that are able to provide a good approximate solution to the MDP within a reasonable time. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.02211 |
| By: | Lola Blandin (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); Hélène Bouscasse (CESAER - Centre d'économie et de sociologie rurales appliquées à l'agriculture et aux espaces ruraux - UBFC - Université Bourgogne Franche-Comté [COMUE] - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Dijon - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Sandrine Mathy (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: | Numerous Low Emission Zones (LEZs) have been implemented across Europe to improve air quality and reduce car use. However, to date, the impact of LEZs has been widely perceived as regressive, since vehicles that meet the low emission requirements are more expensive than others. The literature assessing the impact of LEZs on vulnerable and poor households prior to their implementation is sparse, particularly if we take into account the diversity of households' capacities to adapt according to their characteristics and mobility habits, beyond the sole solution of purchasing a LEZ-compatible vehicle. However, such assessments would make it possible to define accompanying policies to improve the social justice of the LEZs. In this article, we develop a methodology to evaluate the ex-ante impacts of a LEZ on vulnerable or poor households. First, we identify households affected by the LEZ. Second, the VulMob multidimensional indicator is used to identify, among affected households, households with low transport-affordability and highly vulnerable households according to their vulnerability profiles. Third, we assess the adaptive capacity in terms of modal shift options and considering the possibility to modify the destination. We apply this methodology to the Grenoble area (France), using the Local Household Travel Survey. The results show that not only are highly vulnerable households more affected by the LEZ than other households, but also that more of them are left with no alternative but to buy a LEZ-compliant car. Nevertheless, modal shift seems an adaptation solution with great potential for all households. This could improve the environmental and health performance of LEZs. This work can guide decision-makers in the definition of preventive and compensatory policies, considering the profiles of transport vulnerability and the specificities of the territory. |
| Keywords: | Low-emission zone, Transport vulnerability, Ex-ante evaluation |
| Date: | 2025–03 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04766903 |
| By: | Philipp Denter |
| Abstract: | Two office-driven politicians compete in an election by proposing policies. There are two possible states of the world: climate change is either mild, with no lasting effect on welfare if addressed properly, or severe, leading to reduced welfare even with appropriate measures. Voters receive signals about the state but may interpret them in a non-Bayesian way, holding motivated beliefs. An equilibrium always exists where voters ignore signals suggesting severe consequences, causing politicians to propose policies for mild climate change -- even when they know otherwise. If severe climate change leads to only moderate welfare losses, another efficient equilibrium exists. In this equilibrium, voters trust politicians to choose the optimal policies, implying voters choose to trust their signals, which in turn encourages optimal policy choices by politicians. The model highlights the role of political rhetoric and trust in government, and a first glance at the data reveals patterns consistent with the models predictions. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.20982 |
| By: | Demirer, Mert (MIT); Karaduman, Omer (Stanford U) |
| Abstract: | Using rich data on hourly physical productivity and thousands of ownership changes from U.S. power plants, we study the effects of acquisitions on efficiency and underlying mechanisms. We find a 2% average increase in efficiency for acquired plants, beginning five months after acquisitions. Efficiency gains rise to 5% under direct ownership changes, with no significant change when only parent ownership changes. Investigating the mechanisms, three-quarters of the efficiency gain is attributed to increased productive efficiency, while the rest comes from dynamic efficiency through changes in production allocation. Our evidence suggests that high-productivity firms buy underperforming assets from low-productivity firms and make them as productive as their existing assets through operational improvements. Finally, acquired plants improve their performance beyond efficiency by increasing output and reducing outages. |
| JEL: | G34 L22 L25 L40 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:ecl:stabus:4209 |
| By: | Brueckner , Markus (Australian National University); Ciminelli, Gabriele (Asian Development Bank); Loayza, Norman (World Bank) |
| Abstract: | We examine the relationship between oil price windfalls and labor market regulation empirically through panel regressions in a sample of 83 countries spanning 1970–2014. We find that oil price windfall gains lead to a deregulation of the labor market in autocracies but have no effects in democracies. Windfall losses instead cause a sizeable deregulation in democracies but have limited effects in autocracies. We then consider possible transmission channels. Democracies appear to redistribute the rents stemming from a positive windfall by increasing government expenditure. Rent extraction and economic efficiency considerations are instead both plausible deregulation drivers following windfall gains in autocracies, as expenditures are not raised, while gross domestic product and employment gradually increase after positive windfalls. Finally, the deregulation following windfall losses in democracies is consistent with the crisis-inducedreform hypothesis, as windfall losses deteriorate the current account and budget balances and increase the probability of a systemic banking crisis. |
| Keywords: | oil price; windfalls; labor market; deregulation; political institutions |
| JEL: | F16 J41 O13 P11 P16 Q02 |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:0752 |
| By: | Twarath SUTABUTR |
| Abstract: | Thailand is a developing country with a growing economy, which has led to increased energy consumption and carbon emissions. To tackle this issue, the Royal Thai Government has implemented several policies and initiatives to reduce the country’s carbon footprint and promote sustainable development. Carbon capture utilisation and storage (CCUS) has just become one of Thailand’s policies to help push a low-carbon agenda and to enable net-zero emissions in 2065. The Thailand National Committee on Climate Change Policy approved the establishment of the Greenhouse Gas Reduction Steering Committee, which initiated the technology applications for the country’s first CCUS. The committee’s mission is to accelerate the actions that can mitigate climate impacts by applying CCUS technology in the energy and industry sectors, leveraging the knowledge and experiences in the petroleum exploration and production industry. This first CCUS pilot project, originally initiated by a team in the PTT Group, is the Thailand CCUS HUB Project. This paper summarises the conceptual design and actions required to start implementing the project. |
| Keywords: | carbon capture, CCUS policy, CCUS hub, CCUS development, Thailand |
| Date: | 2024–06–18 |
| URL: | https://d.repec.org/n?u=RePEc:era:wpaper:dp-2024-08 |
| By: | Basile Michel (PLACES - EA 4113 - PLACES - Laboratoire de géographie et d'aménagement - CY - CY Cergy Paris Université, ESO - Espaces et Sociétés - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UM - Le Mans Université - UA - Université d'Angers - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - IGARUN - Institut de Géographie et d'Aménagement Régional de l'Université de Nantes - Nantes Université - pôle Humanités - Nantes Univ - Nantes Université - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement); Aurélien Martineau (PLACES - EA 4113 - PLACES - Laboratoire de géographie et d'aménagement - CY - CY Cergy Paris Université, ESO - Espaces et Sociétés - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UM - Le Mans Université - UA - Université d'Angers - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique - Nantes Univ - IGARUN - Institut de Géographie et d'Aménagement Régional de l'Université de Nantes - Nantes Université - pôle Humanités - Nantes Univ - Nantes Université - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement) |
| Abstract: | Shaka Ponk's decision to stop the band for ecological reasons illustrates the environmental impasse in which contemporary music finds itself. Despite the recent proliferation of "green" initiatives, the sector is still dominated by a model that causes significant socio-environmental degradation. But alternative experiments are emerging... |
| Abstract: | L'arrêt du groupe Shaka Ponk pour des raisons écologiques illustre les impasses dans lesquelles sont empêtrées les musiques actuelles sur le plan environnemental. Malgré la multiplication récente des initiatives "vertes", le secteur reste pour l'instant dominé par un modèle qui cause d'importantes dégradations socio-environnementales. Mais des expérimentations alternatives émergent… |
| Keywords: | music, ecology, artist, music event, ecological crisis, musique, écologie, artiste, événement musical, crise écologique |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04771139 |
| By: | Toman, Michael A. (Resources for the Future); Joiner, Emily (Resources for the Future); Lohawala, Nafisa (Resources for the Future) |
| Abstract: | This paper examines possibilities for reducing greenhouse gas emissions from aviation through alternative aviation fuels with lower life-cycle emissions. After discussing various technological options for such fuels, the paper considers how various policies in the United States and other countries affect their production and usage. The paper also outlines a possible policy mechanism for reducing the carbon intensity of aviation fuel in the United States and highlights important questions that must be addressed to increase the use of low-carbon fuels. |
| Date: | 2024–11–19 |
| URL: | https://d.repec.org/n?u=RePEc:rff:dpaper:dp-24-20 |
| By: | Hakan Yilmazkuday (Department of Economics, Florida International University) |
| Abstract: | This paper investigates the interaction between global geopolitical risks and global energy uncertainty by focusing on their implications for global and domestic energy prices of 157 countries. The empirical investigation is based on a structural vector autoregression model covering the monthly sample period between 1996m1-2022m10, where global real economic activity is controlled for. The results show that a unit shock to global geopolitical risk (normalized to one standard deviation) results in about 1.13 units of an increase in global energy uncertainty (normalized to one standard deviation) in the long run (after two years), whereas the corresponding effects on global energy prices are statistically insignificant. In contrast, a unit shock to global energy uncertainty results in about 52% (57%) of a reduction in global energy prices (global economic activity), acting like negative global demand shocks. When statistically significant country-specific results are considered in the long run, a positive shock to the global geopolitical risk affects domestic energy prices positively (negatively) in 10% (10%) of oil producing countries, 32.1% (19.7%) of non-oil producing countries, 47.2% (0%) of advanced economies, 55% (0%) of euro area countries, 25% (22.4%) of emerging markets, and 22.2% (26.7%) of developing countries. In comparison, a positive shock to the global energy uncertainty affects domestic energy prices positively (negatively) in 5% (40%) of oil producing countries, 3.6% (54%) of non-oil producing countries, 0% (61.1%) of advanced economies, 0% (50%) of euro area countries, 3.9% (56.6%) of emerging markets, and 6.7% (37.8%) of developing countries. Important policy implications follow regarding the energy security of countries. |
| Keywords: | Geopolitical Risk, Energy Uncertainty, Energy Prices, Real Economic Activity |
| JEL: | E31 F62 Q41 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:fiu:wpaper:2413 |
| By: | Teebken, Julia; Jacob, Klaus |
| Abstract: | EU climate policy has grown into an established policy field which generates its political relevance particularly at the international level. Over the past three decades, a complex global governance architecture has emerged and climate policy has been mainstreamed into many different policy areas because of its cross-cutting nature. This CEPS In-Depth Analysis report identifies key areas where the EU should focus if it wishes to enhance its actorness and effectiveness in the climate policy domain. These strategic priorities include: procedures, participation, knowledge and the representation of core EU values, coordination and policy ambivalence, burden sharing, the participation of civil society and local actors, monitoring and reporting mechanisms, and trade. This report is part of a series drawing on the outcomes of the EU-funded TRIGGER (Trends in Global Governance and Europe’s Role) project that ran from 2018 to 2022. Using the conceptual framework developed as part of TRIGGER, the report moves beyond observing the characteristics of the EU as an actor to explore its actorness/effectiveness over time in a specific policy domain – in this case, climate change. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:eps:cepswp:39487 |
| By: | Sakshi Bhayana; Biswajit Nag |
| Abstract: | This study explores whether the Global Value Chain(GVC) participation of 16 emerging market economies (EMEs) from 1995 to 2018 in the manufacturing sector leads to a rise in carbon emissions embodied in trade. The study covers the ecological dimension of the Global Value Chain and validates the Pollution Haven Hypothesis in developing nations.To address the problem of cross-sectional dependence, autocorrelation, and heteroscedasticity panels, we estimate the above models using the feasible generalized least squares (FGLS) method. Our findings exhibit a continuous growth in carbon emissions of all the EMEs, there exists a positive association between GVC participation and domestic CO2 emissions embodied in gross exports. Also, EMEs' foreign carbon emissions embodied in gross exports directly correlate with backward GVC Participation, suggesting that the cleaner environment in developed countries comes at the expense of a dirtier environment in developing countries. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2411.02963 |
| By: | Urban, Patricia; Nipius, Luca; Egenhofer, Christian |
| Abstract: | The nascent green steel industry requires increased demand to grow and a stable market to facilitate investments and to scale up production sites. Simultaneously, the automotive industry can use green steel’s environmental benefits to reduce its carbon footprint, as a large share of the industry’s emissions stem from the different steel components used in the construction of vehicles. Accounting for around 12 % of global steel consumption but potentially being able to pass on the price of a ‘green steel premium’ to its end consumers, the automotive industry is uniquely positioned to create demand for green steel without having to rely on public subsidies. This CEPS In-Depth Analysis investigates different policy options that could trigger more demand for green steel from the automotive industry. We analysed various multi-stakeholder initiatives as well as a range of policy options in terms of their potential to facilitate such demand. While multi-stakeholder initiatives have been important for industry cooperation and creating awareness for green steel within the automotive industry, the differences between their definitions and standards make it difficult to compare the various kinds of low-carbon steel. This may therefore reduce their potential to stimulate demand. The need for common EU standards for green steel has emerged as a crucial prerequisite for many policy options. Against the backdrop of carbon pricing and sustainable finance, creating transparency (e.g. through reporting activities) may indirectly induce demand for low-emissions steel among vehicle manufacturers. However, introducing a set target for reduced material emissions would likely have the largest potential to drive change. There are several policy options that could have scope to introduce such a target. Still, many uncertainties remain on how such a target could be designed and implemented, and policymakers will need to address some inherent conflicts. For example, obliging manufacturers to use a certain share of green steel for producing a vehicle may instead incentivise them to switch to other materials. Trying to regulate a vehicle’s overall carbon footprint could have a similar impact. Carmakers could achieve the necessary emissions reductions by using other materials while continuing to buy conventionally produced steel. This would not stimulate demand for green steel. |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:eps:cepswp:42024 |
| By: | Urban, Patricia; Rizos, Vasileios; Ounnas, Alexandre; Kassab, Amin; Kalantaryan, Hayk |
| Abstract: | In recent years, the concept of green jobs has been the focus of increasing attention from both policy and research circles. At the EU policy level, the green transition is seen as an opportunity to create jobs in existing and emerging economic sectors. The need for re- and upskilling workers to ensure a socially just green and digital transition is also increasingly being highlighted in the policy debate. Despite this renewed surge in interest, partly propelled by the necessity to mitigate the impacts of the climate crisis as well as external shocks such as the Covid-19 pandemic and the Russian invasion of Ukraine, the notion of green jobs is not a recent one. A large number of different approaches to how green jobs can be defined and classified have been put forward in the past few decades. While these definitions and taxonomies display certain overlaps, often in terms of a focus on jobs in the Environmental Goods and Services Sector, key analytical differences compromise the comparability of assessments. These differences along with gaps identified in existing definitions and frameworks have exposed the need to create a novel taxonomy for green jobs. Combining various elements of these approaches in a quantifiable, and thus practically applicable, manner, this report develops an integrated taxonomy based on four pillars: inputs, outputs, processes, and job quality. The use of different indicators to operationalise these pillars aims to enable more accurate assessments and comparison of case studies, to support policymaking in this area. A number of different strategies and policies that incorporate green jobs elements have been launched, at the EU level as well as by Member States and internationally, in the past couple of years. In line with other recent policy developments, most of these initiatives focus on developing skills for the green transition. In addition, many strategies incorporate a social dimension to green jobs, aiming to ensure that vulnerable groups are protected in the green transition. Tackling the creation and retention of green jobs while phasing out brown jobs may profit from a more integrated approach that goes beyond skills, while also taking into account the greenness of work processes, outputs and supply chain inputs, as put forward by this report. |
| Date: | 2023–09 |
| URL: | https://d.repec.org/n?u=RePEc:eps:cepswp:40726 |
| By: | Knut Are Aastveit; Hilde C. Bjørnland; Jamie L. Cross; Helene Olsen |
| Abstract: | This paper demonstrates that inflation expectations have acted as significant amplifiers of recent global demand and supply shocks, thereby playing a crucial role in maintaining inflation at relatively high levels. This finding is established by applying a structural vector autoregression model that includes various shocks to global demand and supply, along with domestic inflation and inflation expectations for six economies: the United States, Canada, New Zealand, the Euro area, the United Kingdom, and Norway. We begin by documenting that global demand and supply shocks in the oil market, as well as global supply chain disruptions, have been major drivers of the recent inflation surge in all these economies. Subsequently, through various counterfactual and conditional forecasting exercises, we demonstrate that inflation expectations generally amplify the transmission of global shocks to inflation and have played a critical role in sustaining elevated inflation rates in recent years, particularly in the United States, Canada, and New Zealand. |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:bny:wpaper:0132 |
| By: | Marcus Gawronsky; Chun-Sung Huang |
| Abstract: | This paper introduces a novel approach to financial risk analysis that does not rely on traditional price and market data, instead using market news to model assets as distributions over a metric space of risk factors. By representing asset returns as integrals over the scalar field of these risk factors, we derive the covariance structure between asset returns. Utilizing encoder-only language models to embed this news data, we explore the relationships between asset return distributions through the concept of Energy Distance, establishing connections between distributional differences and excess returns co-movements. This data-agnostic approach provides new insights into portfolio diversification, risk management, and the construction of hedging strategies. Our findings have significant implications for both theoretical finance and practical risk management, offering a more robust framework for modelling complex financial systems without depending on conventional market data. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.23447 |
| By: | Guillermo Guzmán Prudencio (SDSN Bolivia); Lykke E. Andersen (SDSN Bolivia) |
| Abstract: | El estudio analiza la pobreza y la desigualdad a nivel subnacional en Bolivia a partir de los datos de consumo de los medidores eléctricos de todo el país (categoría residencial), con una frecuencia mensual de 2012 a 2016, agrupados en torno a 327 municipios y con un total de 130 millones de observaciones (Big data). La hipótesis central de la investigación sostiene que los municipios más poblados (las grandes ciudades) son los que mejores resultados tienen en la reducción de la pobreza y la desigualdad, en contraposición con los municipios pequeños y rurales, típicamente pobres; ponderando, además, factores de ubicación geográfica por regiones (tierras altas, valles y tierras bajas) y la cualidad de los municipios metropolitanos. Los resultados muestran que estos fenómenos tienen importantes componentes comunes, pero también, particularidades notables; ayudándonos a comprender de mejor manera la realidad boliviana, ciertamente compleja. |
| Keywords: | Bolivia, pobreza, desigualad, consumo eléctrico, Big data |
| JEL: | I32 D6 |
| Date: | 2024–07 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0424 |
| By: | Mohiuddin, Hossain; Fitch-Polse, Dillon T. PhD |
| Abstract: | To understand the extent to which micromobility services such as bike-share and scooter-share are enabling car-light lifestyles by replacing driving, we explore the trip-chaining patterns of micromobility users. We use travel diary data collected from micromobility users in 48 cities across the US. Our analysis incorporated 15, 985 trip chains from 1, 157 survey participants who provided at least seven days of travel diary data, and an imputed dataset of 35, 623 trip chains from 1, 838 participants from the same survey. Our analysis of both datasets shows that a considerable portion of car owners are leaving their cars at home when using micromobility. This suggests that, for a subset of users, micromobility can form part of a car-free or car-light day of travel, despite having a car available. Trip chains with less frequent car use are composed of a variety of different modes in combination with micromobility. Micromobility services are supportive of complex trip chains that include both work and non-work trips with reduced reliance on cars. The use of micromobility services tends to entirely replace shorter car trips on shorter-length trip chains. Our findings show the importance of considering the chain of trips rather than individual trips to understand the sustainability potential of micromobility services. The policy implications of these findings are improving methods of travel behavior analysis of shared mobility services. |
| Keywords: | Social and Behavioral Sciences, Micromobility, shared mobility, trip chaining, mode choice, travel surveys |
| Date: | 2024–09–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt2r66k788 |
| By: | Alice Pizzo (Copenhagen Business School); Christina Gravert (Department of Economics, University of Copenhagen); Jan M. Bauer (Copenhagen Business School); Lucia Reisch (University of Cambridge, Judge Business School) |
| Abstract: | We examine the impact of a carbon tax on consumer choices via a large-scale online randomized controlled trial. Higher taxes generally reduce the demand for high-carbon goods. Compared to an import tax, a carbon tax reduces demand when the tax is zero (i.e., announced but not levied) but shows relatively higher demand for high-carbon goods when a positive tax is introduced. This contradiction of basic price theory is entirely driven by climate-concerned consumers. Our findings suggest that carbon taxes can crowd out climate concerns, leading to important implications for policy. |
| Keywords: | Behavioral response; Carbon pricing; Climate change; Experiment; Moral licensing. |
| JEL: | Q58 C90 D03 D90 Q50 Q51 |
| Date: | 2024–11–13 |
| URL: | https://d.repec.org/n?u=RePEc:kud:kucebi:2416 |
| By: | Hatsor, Limor; Hashimzade, Nigar; Jelnov, Artyom |
| Abstract: | Recent antitrust regulations in several countries have granted exemptions for col- lusion aimed at achieving environmental goals. Firms can apply for exemptions if collusion helps to develop or to implement costly clean technology, particularly in sec- tors like renewable energy, where capital costs are high and economies of scale are significant. However, if the cost of the green transition is unknown to the competition regulator, firms might exploit the exemption by fixing prices higher than necessary. The regulator faces the decision of whether to permit collusion and whether to commission an investigation of potential price fixing, which incurs costs. We fully characterise the equilibria in this scenario that depend on the regulator’s belief about the high cost of green transition. If the belief is high enough, collusion will be allowed. We also identify conditions under which a regulator’s commitment to always investigate price fixing is preferable to making discretionary decisions. |
| Keywords: | policy; antitrust; collusion; environment |
| JEL: | F0 G38 K21 Q52 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122611 |
| By: | Greer, Fiona PhD; Bin Thaneya, Ahmad; Apte, Joshua PhD; Rakas, Jasenka PhD; Horvath, Arpad PhD |
| Abstract: | California must build, operate, and maintain transportation infrastructure while ensuring that the health of communities and the planet are not compromised. In addition to vehicleemissions, supply chain inputs and energy use from constructing and maintaining transportation projects (e.g., roads, airports, bridges) result in pollution that contributes to climate change and impacts the health of local communities. Project-specific air and noise pollution can further burden vulnerable populations. By assessing transportation projects using a life-cycle perspective, all relevant emission sources and activities from raw material production, supply chain logistics, construction, operation, maintenance, and end-of-life phases of a project can be analyzed and mitigated. |
| Keywords: | Engineering |
| Date: | 2024–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt5tg2b0dp |
| By: | OECD |
| Abstract: | The OECD Recommendation on Information and Communication Technologies (ICTs) and the Environment was adopted in 2010 and recognised the link between digital technologies and environmental sustainability. Today, advances in digital technologies underscore their growing role in achieving climate resilience. At the same time, digital technologies and their underlying infrastructure have an environmental footprint that must be managed. This report takes stock of technology and policy developments since the adoption of the Recommendation and provides a gap analysis and assessment of its relevance, concluding that the Recommendation remains relevant and identifying areas for revision. |
| Keywords: | environment, information and communication technologies, Recommendation of the Council on Information and Communication Technologies and the Environment |
| Date: | 2024–11–21 |
| URL: | https://d.repec.org/n?u=RePEc:oec:stiaab:370-en |
| By: | Erika Soliz (UPB); Ricardo Nogales (UPB) |
| Abstract: | Access to clean energy is critical for economic development, poverty reduction, and enhancing individual well-being, aligning with Sen's capability approach which emphasizes the importance of energy services in achieving essential life functions. Despite its importance, nergy poverty remains underexplored in Latin America, particularly in Bolivia. We address this gap by evaluating energy poverty convergence at the municipal level in Bolivia from 2012 to 2016. We employ a β-convergence analysis to compare observed and expected convergence rates, identifying municipalities that are energy poverty pockets—regions with high initial poverty levels and slow improvement rates. Our study also characterizes these lagging municipalities and projects their energy poverty levels for 2030. Findings from our study aim to inform targeted public policies by highlighting regional disparities and providing a nuanced understanding of energy poverty dynamics in Bolivia, thereby contributing to more effective interventions aligned with national and international development goals. |
| Keywords: | Energy poverty; Bolivia; Convergence; Inequality. |
| JEL: | D63 P28 O13 |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:iad:sdsnwp:0624 |
| By: | Hatsor, Limor; Jelnov, Artyom |
| Abstract: | The premise of industrial symbiosis (IS) is that advancing a circular economy that reuses byproducts as inputs in production is valuable for the environment. We challenge this premise in a simple model. Ceteris paribus, IS is an environmentally friendly approach; however, implementing IS may introduce increased pollution into the market equilibrium. The reason for this is that producers’ incentives for recycling can be triggered by the income gained from selling recycled waste in the secondary market, and thereby may not align with environmental protection. That is, producers may boost production (and subsequent pollution) to sell byproducts without internalizing the pollution emitted in the primary industry or the recycling process. We compare the market solution to the social optimum and identify a key technology parameter (the share of reused byproducts) that may have mutual benefits for firms, consumers, and the environment. |
| Keywords: | circular economics; industrial symbiosis; pollution; environmental policy |
| JEL: | L11 Q5 Q52 Q53 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122612 |