nep-ene New Economics Papers
on Energy Economics
Issue of 2025–06–16
53 papers chosen by
Roger Fouquet, National University of Singapore


  1. Climbing the Energy Ladder: How Energy Resources Hinder, Facilitate, and Fuel Economic Growth By Derek Lemoine
  2. Charting a green-energy transformation in Africa By Rim Berahab; Karim El Aynaoui
  3. France’s Green Horizon: Supply-Side Drivers for a Competitive Transition in Export Markets By Cristina Peñasco
  4. Too much or not enough? The dual nature of green discontent and its geography By Molica Francesco; Marques Anabela
  5. Shifting Gears to Sustainability: A Deep-Dive into Solar-Powered Bike Pathways By Lee, Seungjin; Mazarei Saadabadi, Kasra; Martinez-Morales, Alfredo A.
  6. Evidence of firm-level pollution leakage resulting from clean air policy in China By Chang Liu; Jingrong Wang; David M Reiner
  7. European Natural Gas through the 2020s: the Decade of Extremes, Contradictions and Continuing Uncertainties By Yaroslav Melekh; James Dixon; Katrina Salmon; Michael Grubb
  8. Oil Shocks and their Impact on Corporate Profitability, Productivity, and Credit Risk: Firm-Level Evidence Over Two Decades By Frédéric Vinas
  9. Impact of Gasoline and Diesel Subsidy Reforms on Global Biofuel Mandates By Argueyrolles, Robin; Heimann, Tobias; Delzeit, Ruth
  10. Do Gasoline Price Shocks during Adolescence Reduce Driving as an Adult? A Replication Exercise By Wiebe, Michael
  11. Turning Back the Clock: Industrial, Economic, and Diplomatic Fallout from the U.S. Climate Policy Reversal By Rim Berahab
  12. The lithium market: between the needs of the energy transition and major geostrategic issues By Yves Jégourel
  13. Le marché du lithium : entre les besoins de la transition énergétique et les enjeux géostratégiques majeurs By Yves Jégourel
  14. Understanding Distributional Impacts of Carbon Pricing – Insights from Comparative Analysis By Immervoll, Herwig; Linden, Jules; O'Donoghue, Cathal; Sologon, Denisa Maria
  15. Renewable Energy in Russia in the Midst of Turbulence: Focused on the Republic of Sakha (Yakutia) By TOKUNAGA, Masahiro
  16. Evidence of Firm-level Pollution Leakage resulting from Clean Air Policy in China By Liu, C.; Wang, J; Reiner, D. M.
  17. Mobilising Science, Technology and Innovation to enhance energy efficiency and renewable energy application in Seychelles By Elci Sirin; Galindo Manuel; Sarcina Angela
  18. A Causation-Based Framework for Pricing and Cost Allocation of Energy, Reserves, and Transmission in Modern Power Systems By Luiza Ribeiro; Alexandre Street; Jose Manuel Arroyo; Rodrigo Moreno
  19. Data, Distribution, and Modeling Innovations in Spatiotemporal Energy Economics By Halkos, George
  20. When the Boundary Layer Drops: Air Quality and Healthcare Use in Mexico By Piero Basaglia; Luis Sarmiento
  21. The greener, the better? Evidence from government contractors By Olga Chiappinelli; Ambrogio Dalò; Leonardo M. Giuffrida
  22. The Social Dimensions of Climate Change in India : From Adaptation to Mitigation By Mehta, Soumya Kapoor; Gupta, Neelanjana
  23. Colombia: Squaring energy transition and fiscal credibility to transform the economy By Maxime TERRIEUX
  24. The cost of Germany's nuclear power phase-out, Atomausstieg: Additional Greenhouse Gas Emissions, Illness and Deaths By Pineda, Jesus; Núñez-Mujica, Guido; Wang, Seaver; Sen, Drishti
  25. The geopolitics of crude oil futures contracts benchmarks: RMB-denominated oil futures and the shift towards autonomy By Goghie, Alexandru-Stefan
  26. Forecasting Residential Heating and Electricity Demand with Scalable, High-Resolution, Open-Source Models By Stephen J. Lee; Cailinn Drouin
  27. House price externalities of a Minimum Energy Effciency Standard (MEES) By Barile, Lory; Guin, Benjamin; Sandi, Eleni
  28. From Tank to Odometer: Winners and Losers from a Gas-to-VMT Tax Shift By Christopher R. Knittel; Gilbert E. Metcalf; Shereein Saraf
  29. The Electoral Effects of Banning Cars from the Streets: Evidence from Barcelona’s Superblocks By Cèlia Estruch-Garcia; Albert Solé-Ollé; Filippo Tassinari; Elisabet Viladecans-Marsal
  30. What Makes the Oil Pricing Center? The Impact of Futures Markets and Production By Junlian Gong; Jun Nagayasu
  31. Exit Incentives for Carbon Emissive Firms By Ren\'e A\"id; Xiangying Pang; Xiaolu Tan
  32. The Water-Energy Nexus: The Path to Solving the Water Crisis in the Middle East and North Africa By Ferid Belhaj
  33. Pollution Emissions and Foreign-Owned Manufacturing Plants By J. Scott Holladay; Justin R. Roush
  34. The Local Job Multipliers of Green Industrialization By Frattini, Federico Fabio; Vona, Francesco; Bontadini, Filippo; Colantone, Italo
  35. Market power abuse in wholesale electricity markets By Alice Lixuan Xu; Jorge S\'anchez Canales; Chiara Fusar Bassini; Lynn H. Kaack; Lion Hirth
  36. Assessing the Role of Governance and Environmental Taxes in Driving Energy Transitions: Evidence from High-income Countries By Amal Ben Khaled; Rami Haj Kacem; Nathalie Lazaric
  37. Background report to the guide for the use of the EU Ecolabel criteria in the green public procurement of graphic paper, tissue paper and tissue products By Kowalska Malgorzata Agata; Delre Antonio; Donatello Shane; Faraca Giorgia; Wolf Oliver
  38. The Energy Origins of the Global Inflation Surge By Mr. Jorge A Alvarez; Thomas Kroen
  39. Risk and Reward of Transitioning from a National to a Zonal Electricity Market in Great Britain By Lukas Franken; Andrew Lyden; Daniel Friedrich
  40. From fossils to footsteps: How green economic transitions shape migration patterns By Yaroshevskyi, Artem
  41. Defining low-carbon emissions steel: A comparative analysis of international initiatives and standards By Blanco Sara; Arcipowska Aleksandra; Fiorese Giulia; Maury Thibaut; Napolano Loredana
  42. Social Preferences and Environmental Externalities By Pol Campos-Mercade; Claes Ek; Magnus Soderberg; Florian H. Schneider
  43. Green Shields: The Role of ESG in Uncertain Times By Fatih Kansoy; Dominykas Stasiulaitis
  44. Integrating Environmental Economics into ESG Reporting in Europe: The environmental topic-specific cross-sector European Sustainability Reporting Standards (ESRS) By Halkos, George; Aslanidis, Panagiotis-Stavros
  45. Patent pledge and technological innovation: the "good faith" of Tesla By Ziming Wang
  46. Inflation and pandemic in Spain By Leonardo Tariffi
  47. The Role of National Promotional Banks and Institutions (NBPIs) in the Implementation of UN Agenda 2030 in Europe By Salvatore Amico Roxas; Matteo Cuda; Marina Kisvarday; Filippo Munisteri; Francesco Scotti
  48. Assessing innovation in the nascent value chains of climate-mitigating technologies By Zachary H. Thomas; Ellen D. Williams; Kavita Surana; Morgan R. Edwards
  49. The strategic raw material partnership between the EU and Zambia: Industrial cooperation is key to value creation and long-term collaboration By Schulze, Meike
  50. Participación ciudadana en la gestión de los recursos naturales y la transformación territorial sostenible By Marín, Anabel
  51. Stromnetzausbau: Kapital mobilisieren, Netzentgelte reduzieren By Kölschbach Ortego, Axel; Gassen, Nicolas; Steitz, Janek
  52. Eco positioning drives sustainable fashion consumption through process related strategies and brand familiarity By Jian, Wenze; Zhong, Ziqi
  53. Trade and Industrial Policy in Supply Chains: Directed Technological Change in Rare Earths By Laura Alfaro; Harald Fadinger; Jan S. Schymik; Gede Virananda

  1. By: Derek Lemoine
    Abstract: I show that the nature of the energy resources available to an economy qualitatively determines long-run growth outcomes. A harvested resource such as biomass drags on growth, a mined resource such as coal enables output per capita to hold constant, and both a tapped resource such as oil and a manufactured resource such as solar panels risk degrowth if energy return on energy invested (EROI) cannot stay above a threshold. The only energy resource that can fuel long-run growth is a manufactured resource such as solar panels. Either that resource must rely on substitutable energy inputs that have a sufficiently large EROI, or it must be produced by robots that are themselves produced from robots and energy. Even in these cases, coal and oil economies may have been necessary stages on the way from a biomass economy to a solar economy.
    JEL: O13 O41 Q43
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33864
  2. By: Rim Berahab; Karim El Aynaoui
    Abstract: The demand for energy in Africa is growing rapidly, driven by population growth, urbanisation and industrialisation. Nevertheless, over 600 million Africans still lack access to electricity, which represents a significant energy gap for the continent. At the same time, Africa is endowed with vast renewable-energy potential, including abundant solar and wind resources, along with emerging technologies such as green hydrogen. It is crucial to unlock this potential to meet Africa’s energy needs and to foster sustainable economic development. Africa is well-placed to capitalise on the global drive for clean energy technologies and supply chain development, as renewable energy offers the dual benefits of expanding energy access and promoting green industrialisation across the continent. Nevertheless, achieving this transformation will be complex, involving a range of challenges in relation to governance, policy, financing, costs, domestic markets and competitiveness. Effective governance is vital to guarantee a coordinated and inclusive transition. However, many African countries are confronted with political instability, regulatory uncertainties and fragmented institutions, which make the implementation of ambitious renewable energy policies more challenging. Robust governance frameworks are thus essential to secure the investment required to scale-up renewable energy projects across the continent. It is equally important to consider the policy environment, which should strike a balance between the urgent need for energy access and specific challenges faced by Africa and the sustainability and climate goals.
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_04-25-ch
  3. By: Cristina Peñasco
    Abstract: France's green transition offers a unique lens into the interplay between decarbonisation strategies and industrial competitiveness within the context of a high-income economy. As a major European economy, France stands at a critical moment in balancing its reliance on nuclear power with the acceleration of renewable energy adoption and fostering green industrial innovation. This is relevant as the country faces increasing pressure to align with the EU’s 2050 carbon-neutrality goals while addressing domestic challenges, including fiscal constraints. This study employs a descriptive methodology based on a comparative analysis of indicators. By analysing indicators such as R&D spending, patenting trends, renewable energy costs, and green export shares, the paper assesses France’s green goods export competitiveness, industrial strengths, energy transition inputs, and transition risks relative to other G7 nations, China, and Spain. The findings reveal that while France benefits from strong nuclear infrastructure and high Green Complexity Potential, its share in global green exports has declined—from 4.7% in 2000 to 2.5% in 2022. Furthermore, lagging renewable energy deployment, limited fiscal support, and gaps in green innovation suggest that France risks falling behind some European counterparts, such as Germany or Italy, in achieving leadership in the green transition. However, opportunities exist in high-complexity sectors such as hydrogen, environmental monitoring, and carbon capture technologies, where France’s existing capabilities can drive competitiveness and export growth. Its participation in a single European green good export market is a key strategy to strengthen a competitive transition in France and Europe more widely.
    Keywords: Green Transition, Industrial Competitiveness, Exports, Decarbonization, Green Innovation
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:bfr:banfra:990
  4. By: Molica Francesco; Marques Anabela
    Abstract: This study examines the dual nature of green discontent, which manifests as dissatisfaction with insufficient climate action and opposition to policies perceived as overly restrictive or economically disruptive. The analysis focuses on the spatial dimensions of this phenomenon, assessing how socio-economic, climatic, and institutional factors influence public attitudes toward environmental policies. The study relies on Eurobarometer survey data and voting patterns at the NUTS2 level to capture regional variations in green discontent across Europe. The results reveal clear contrasts between urban areas exposed to climate risks, rural regions dependent on carbon-intensive industries, and economically stable territories. These findings emphasize the importance of adopting place-based approaches to design climate policies that are both equitable and effective. The paper concludes with recommendations on how to integrate territorial environmental justice into climate strategies to address regional vulnerabilities and strengthen public support for ecological transition.
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:ipt:termod:202504
  5. By: Lee, Seungjin; Mazarei Saadabadi, Kasra; Martinez-Morales, Alfredo A.
    Abstract: This white paper evaluates the feasibility of solar-powered bike paths in California, integrating renewable energy generation with sustainable transportation. Drawing on global case studies—including Germany’s solar cycle path roofing project, the Netherlands’ SolaRoad, and South Korea’s solar-integrated bike path—the study highlights the environmental, economic, and technical benefits of these systems. A conceptual case study along the Santa Ana River Trail in Riverside, California, modeled a 1 megawatt solar bike path capable of producing 2, 022, 041 kilowatt-hours (kWh) annually and offsetting 734 metric tons of carbon dioxide emissions. The analysis used advanced tools like PVWatts (a solar energy output estimation tool), System Advisor Model (SAM), and Jobs and Economic Development Impact (JEDI) to assess energy production, financial viability, and job creation. The Riverside project demonstrated a levelized cost of energy of 12.64 cents per kWh and job creation of 20.4 construction jobs and 0.2 operational jobs, confirming financial feasibility for pilot-scale projects. However, challenges such as high upfront costs, maintenance demands, and regulatory complexities must be addressedthrough modular designs and streamlined permitting processes. Key recommendations include leveraging public-private partnerships, prioritizing equity in project siting to benefit underserved communities, and initiating pilot projects in high-visibility areas to demonstrate feasibility and catalyze adoption. Solar bike paths represent a scalable solution to advance California’s climate goals, integrating renewable energy with urban infrastructure to create a cleaner, more equitable future. View the NCST Project Webpage
    Keywords: Engineering, GIS, solar bike paths, geospatial analysis, ArcGIS, System Advisor Model, JEDI model, PVWatts, renewable energy analysis
    Date: 2025–06–01
    URL: https://d.repec.org/n?u=RePEc:cdl:itsdav:qt97k9r1f0
  6. By: Chang Liu; Jingrong Wang; David M Reiner
    Keywords: Environmental regulation, domestic pollution leakage, air pollution, listed pollution-intensive firms, pollution-related investments
    JEL: L25 L60 O13 Q53 Q58 R11
    Date: 2025–06
    URL: https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2511
  7. By: Yaroslav Melekh (UCL Institute of Sustainable Resources); James Dixon (UCL Institute of Sustainable Resources); Katrina Salmon (UCL Institute of Sustainable Resources); Michael Grubb (UCL Institute of Sustainable Resources)
    Abstract: The European gas system has entered a structurally volatile phase defined by post energy crisis overbuild, dislocated demand trajectories, and a decoupling mandate under REPowerEU. This paper interrogates the contradictions between fossil lock-in through LNG import capacity and overcontracting, and policy-driven demand reduction. The EU’s pivot to flexible LNG procurement exposes pricing to global volatility, while decarbonisation hinges on electrification, demand-side retrofits and hydrogen feasibility—each encumbered by cost, infrastructure lag, and political friction. We assess Europe's gas outlook through the decade's residual volatility, policy ambivalence, and the emerging global LNG oversupply regime — a clash with geopolitical energy security imperatives, domestic backlashes against capital-intensive green technologies and market inertia. We argue that Europe’s energy system now operates in a zone of structural ambiguity—where security, sovereignty, economy and climate ambition remain deeply entangled, but as yet far from operationally aligned.
    Keywords: Natural gas trade; LNG; European energy scenarios; European energy security; RePowerEU
    JEL: D40 D47 F15 F21 F50 F51 G13 H12 L60 L95 O25 O38 O52 Q34 Q35 Q41 Q47 Q48 Q54
    Date: 2025–05–13
    URL: https://d.repec.org/n?u=RePEc:thk:wpaper:inetwp233
  8. By: Frédéric Vinas
    Abstract: I study the impact of oil price shocks to non-financial firms over two decades using a highly granular firm-level dataset. I show the impact of these price shocks to key financial and operational metrics, including value added, employment, real wages, labor share, profit margins, dividend payments, productivity, and credit risk. I highlight the asymmetric effects of oil price increases and decreases. A one standard deviation increase in the weighted oil price shocks leads to a €396 decrease in per capita productivity (in 2024 euros), and a 0.30 percentage point increase in the probability of default, while there is no significant effect in the case of oil price decreases, leading to persistent effects of oil price increases in the medium term. I also show heterogeneous effects of oil price increases across firm size and energy intensity. This paper has implications for policymakers, especially those concerned with financial stability (bank stress-testing, climate stress-testing, macro-financial modeling), and competitiveness, and more generally for those studying climate transition risks.
    Keywords: Oil Shock, Oil Price, Raw Materials, Value Added, Wage Bill, Labor Share, Profit Margin, Default, Productivity, Climate Risk, Transition Risk, Physical Risk, Credit Risk
    JEL: D33 E32 G3 G33 G35 Q41
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:bfr:banfra:989
  9. By: Argueyrolles, Robin; Heimann, Tobias; Delzeit, Ruth
    Abstract: Fossil fuel subsidy reform(s) support the deployment of low‐carbon technologies, yet fossil fuel subsidies remain stubbornly high, while money allocated by governments to renewable energy continues to grow. In the transport sector, this tension is observed between biofuels that still rely on national policies and gasoline/diesel subsidies. Using a global Computable General Equilibrium (CGE) model, we study how phasing out gasoline and diesel subsidies would impact global biofuel mandates. We find that where they are implemented, Fossil Fuel Subsidy Reforms increase biofuel competitiveness and lower the cost of achieving the mandates. The fiscal benefit is therefore twofold with savings on fossil and bio‐based energy subsidies. In a multilateral reform scenario, we simulate the rise in fiscal revenue from phasing out the fossil fuel subsidies to be 25% higher when the avoided spending on biofuels' support is accounted for. In the rest of the world, however, the biofuel targets become costlier to achieve as the price of fossil fuels drops. Considering that global biofuel 2030 targets are achieved, governments' support for biofuel falls by $6 billion in regions phasing gasoline and diesel subsidies but increases by $600 million in the rest of the world.
    Keywords: bio-economy, biofuel, computable general equilibrium (CGE), energy transition, fossil fuel subsidy reform, leakages
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:ifwkie:318259
  10. By: Wiebe, Michael
    Abstract: Severen and van Benthem (2022b) studies the effect of gasoline price changes during adolescence on driving behavior as an adult. They find that price changes at ages 15-18 lead to reduced driving during adulthood. In this comment, I replicate the effect on miles travelled using unrestricted data, test whether price decreases and increases have symmetric effects, and test for heterogeneous treatment effects along several dimensions. I find that the extensive margin is driven by price increases, while the intensive margin is explained by price decreases. The effect of price changes varies by region and race, highlighting the need for further investigation into mechanisms. Overall, I find supporting evidence for the main findings.
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:i4rdps:233
  11. By: Rim Berahab
    Abstract: The second Trump administration’s reversal of federal climate policy is reshaping the U.S. energy and industrial landscape, with significant implications for macroeconomic performance, clean technology competitiveness, and global climate cooperation. While the deregulatory shift and emphasis on fossil-fuel production may generate short-term output gains in selected sectors, the long-term structural transformation necessary for sustained growth in an increasingly low-carbon global economy is likely to be undermined. President Donald Trump’s efforts to dismantle the Inflation Reduction Act (IRA) and related climate policies has disrupted private investment flows, stalled infrastructure deployment, and raised uncertainty for firms in clean-energy supply chains. Simultaneously, regulatory weakening—particularly of emissions standards—has heightened fiscal and systemic risks, while eroding the credibility of U.S. financial markets in pricing climate exposure.
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb024_25
  12. By: Yves Jégourel
    Abstract: Lithium prices have plummeted over the past two years, while demand is set to rise sharply to fuel the planned boom in electric vehicles and "clean tech". Is this a paradox, or is it typical of global commodity markets where instability is the rule and geostrategy plays a key role? An analysis of the mechanisms at work in the market for this strategic resource is needed to understand the shape this market may take over the next few years.
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb015_25_2
  13. By: Yves Jégourel
    Abstract: Le lithium a vu ses prix s’effondrer au cours des deux dernières années, alors que sa demande devrait fortement croître pour alimenter l’essor programmé des véhicules électriques et des ‘’ clean techs ‘’. Paradoxe ou situation caractéristique des marchés mondiaux de matières où l’instabilité fait loi et où la géostratégie joue pleinement son rôle ? Une analyse des mécanismes à l’œuvre sur le marché de cette ressource stratégique est nécessaire, afin de comprendre la physionomie que pourra prendre ce marché au cours des prochaines années.
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb015_25
  14. By: Immervoll, Herwig (OECD, Paris); Linden, Jules (LISER (CEPS/INSTEAD)); O'Donoghue, Cathal (University of Galway); Sologon, Denisa Maria (LISER (CEPS/INSTEAD))
    Abstract: Carbon pricing is becoming increasingly common but raises equity concerns and is frequently perceived as putting higher burdens on the poor than the rich. This chapter discusses the reasons for unequal carbon price burdens across countries and population groups, through the lens of a comparative analysis for two countries with comparable climates but different income levels, Lithuania and Finland. The simulations consider multiple revenue recycling options, and they account for both the direct burdens from households’ fuel consumption and indirect burdens associated with the impact of carbon charges on the prices of other goods. With no compensation to affected households, average burdens are larger and also more regressive in Lithuania than in Finland, largely because of cross-country differences in energy expenditure patterns. Net distributional outcomes depend crucially on how carbon tax revenues are used, however, and carefully designed compensation can prevent regressive impacts of carbon-price packages.
    Keywords: Environmental tax reform, Energy budget share, Distributional impact, Carbon tax burden, Carbon taxation, Revenue recycling
    JEL: C8 D12 D31 H23 Q52
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:iza:izadps:dp17898
  15. By: TOKUNAGA, Masahiro
    Abstract: This paper examines the development of renewable energy in Russia, with a focus on the concept of ecological modernization as an analytical framework with an aim to see the realities of green transition in the country that seems to have fallen behind other major countries in the dynamics of decarbonization. At the national level, Russia’s green transition is slow and sluggish in terms of the installation of variable renewable energy (VRE) generators, despite the fact that it has a considerable amount of latent renewable sources to contribute to decarbonization. On top of this, it has become more difficult for the country to navigate the decarbonizing world as a result of the unprecedented economic sanctions that have forced Western firms to give up their operations in the field of renewables. The demonstration project on the use of wind energy in Tiksi, a northern town in the Republic of Sakha (Yakutia), has shown that wind energy production has successfully progressed as part of the Japan–Russia energy cooperation; however, due to the impact of energy and financial sanctions, it seems unlikely to start a new initiative for wind energy development in the republic with abundant wind resources. In the context of ecological modernization theory, the pathway to a decarbonizing society with innovative renewable technologies is now shut down rather than closed for Russia, partly because of malfunction of domestic institutionalization and mainly owing to Western economic sanctions. This is in contrast to China’s experience, wherein ecological modernization has been forced as a national policy in the last two decades.
    Keywords: Renewable energy, Russia, Republic of Sakha (Yakutia), economic sanctions, ecological modernization
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:hit:rrcwps:106
  16. By: Liu, C.; Wang, J; Reiner, D. M.
    Abstract: Pollution leakage occurs when firms shift pollution-intensive activities to lessregulated regions, potentially undermining environmental policies. Given data limitations in developing countries, investment flows offer an alternative to traditional leakage measures. Using manually collected investment data from 390 listed pollution-intensive firms in China, our study evaluates whether regionally differentiated regulations under the 2013 Clean Air Policy triggered domestic pollution leakage. Applying a difference-in-differences approach, we find that regulated firms significantly increased pollution-related investments in subsidiaries located in less-regulated areas after the policy. Pollution leakage patterns vary by region, with firms in the Three Regions (centered around Beijing, Shanghai, and Guangzhou respectively) relocating investments to both nearby provinces and distant western China, while those in ten other major city clusters primarily shifted investments to nearby areas. We also show that industrial agglomeration, transport infrastructure, and weak innovation capacity drive this relocation. Our findings suggest that investment flows offer a valuable lens for identifying pollution leakage, and that unintended east-to-west transfers may undermine environmental gains. Policymakers should strengthen disclosure requirements, target pollution control funding to affected regions, and support green innovation to reduce relocation incentives.
    Keywords: Environmental Regulation, Domestic Pollution Leakage, Air Pollution, Listed Pollution-Intensive Firms, Pollution-Related Investments
    JEL: L25 L60 O13 Q53 Q58 R11
    URL: https://d.repec.org/n?u=RePEc:cam:camdae:2533
  17. By: Elci Sirin; Galindo Manuel; Sarcina Angela (European Commission - JRC)
    Abstract: Recognizing the crucial role of science, technology, and innovation (STI) in achieving the Sustainable Development Goals (SDGs), this report is set within the broader context of the European Commissionâs global and regional initiatives, underscoring the commitment to the Global Gateway initiative. It forms part of a collaborative endeavour by the Joint Research Centre (JRC) and the Directorate-General for International Partnerships (DG INTPA) of the European Commission, focusing on five African countries. Within this framework, the report focuses on Seychelles, exploring STI's role in addressing the country's critical sustainability challenges, particularly in enhancing energy efficiency and integrating renewable energy sources. The objective is to boost energy efficiency and renewable energy uptake by formulating an STI for SDGs Roadmap through participatory and co-creative approaches. The methodology involves comprehensive desk research, stakeholder workshops, interviews, and surveys to collect insights from public and private sectors, NGOs, and academia. Findings highlight Seychelles' significant reliance on fossil fuels, inefficient electricity production, and underutilized renewable energy potential. Key policy recommendations include strengthening STI governance, enhancing human capital, and fostering eco-innovation through focused R&D. The report's originality lies in its tailored approach to leveraging STI for reinforcing Seychelles' energy resilience and sustainability, which provides a well-structured portfolio of STI investments specifically tailored to Seychelles' sustainability challenges and offers a valuable framework for other countries facing similar sustainability issues.
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141389
  18. By: Luiza Ribeiro; Alexandre Street; Jose Manuel Arroyo; Rodrigo Moreno
    Abstract: The increasing vulnerability of power systems has heightened the need for operating reserves to manage contingencies such as generator outages, line failures, and sudden load variations. Unlike energy costs, driven by consumer demand, operating reserve costs arise from addressing the most critical credible contingencies - prompting the question: how should these costs be allocated through efficient pricing mechanisms? As an alternative to previously reported schemes, this paper presents a new causation-based pricing framework for electricity markets based on contingency-constrained energy and reserve scheduling models. Major salient features include a novel security charge mechanism along with the explicit definition of prices for up-spinning reserves, down-spinning reserves, and transmission services. These features ensure more comprehensive and efficient cost-reflective market operations. Moreover, the proposed nodal pricing scheme yields revenue adequacy and neutrality while promoting reliability incentives for generators based on the cost-causation principle. An additional salient aspect of the proposed framework is the economic incentive for transmission assets, which are remunerated based on their use to deliver energy and reserves across all contingency states. Numerical results from two case studies illustrate the performance of the proposed pricing scheme.
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2505.24159
  19. By: Halkos, George
    Abstract: The objective of the present review is to synthesize recent state-of-the-art advances in the field of energy economics. The present review aims to elucidate the interconnections among various applicable and practical methodologies that may facilitate a sustainable energy transition and therefore the novelty lies in the cross-cutting, methodological integration and forward-looking perspective that informs both academic research and practical policy development in the context of sustainable energy transitions. The contribution of this review is fourfold. First, it systematically compiles the core empirical advancements within different sectors of the energy domain, providing a structured assessment of contemporary research efforts. Second, it critically examines the challenges associated with data availability and reviews methodological innovations designed to address these limitations. Third, it consolidates developments in spatiotemporal econometric techniques, highlighting their significance in capturing dynamic spatial and temporal dimensions of energy systems. Fourth, it presents emerging machine learning-based approaches for forecasting, underscoring their potential to enhance predictive capabilities and inform policy and investment decisions. By integrating insights across these domains, the review offers a comprehensive framework for understanding the methodological evolution in energy economics and identifies pathways for future research that support the global pursuit of a sustainable energy future.
    Keywords: energy economics; energy policy; energy transition; energy modelling and forecasting.
    JEL: Q0 Q01 Q40 Q43 Q47 Q48 Q51
    Date: 2025–06–11
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124992
  20. By: Piero Basaglia; Luis Sarmiento
    Abstract: We use the complete set of administrative public healthcare records in Mexico to provide the first nationwide assessment of diagnosed morbidity attributable to PM2.5 exposure across various health conditions in a developing country. By leveraging quasi-random air pollution shocks from variations in the planetary boundary layer height across Mexican municipalities, we determine the causal impact of PM2.5 on healthcare demand. Our findings indicate that a marginal increase in PM2.5 leads to a 2.3% rise in emergency department admission rates. This effect varies significantly by age group and exposure levels. While most of the increase results from respiratory conditions related to air pollution, we also identify significant impacts on several previously unexplored health issues.
    Keywords: air pollution, public health, development, environmental policy, health inequality
    JEL: Q53 Q58 I31 I18
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11901
  21. By: Olga Chiappinelli (University of Barcelona, BEAT); Ambrogio Dalò (Universiy of Groningen); Leonardo M. Giuffrida (ZEW Mannheim, MaCCI, CESifo)
    Abstract: Governments can support the green transition through green public procurement. Despite its strategic importance, the impact of this policy on firms remains unclear. Using US data, this paper provides the first empirical analysis of the causal effects of green contracts on corporate environmental and economic performance. We focus on an affirmative program for sustainable products, which represents one-sixth of the total federal procurement budget, and publicly traded firms, which account for one-third of total US emissions. Our results show that securing green contracts reduces emissions relative to firm size and increases productivity, with these effects persisting in the long run. We find no evidence that the program selects greener firms, nor that green public procurement sales crowd out private sales. We propose that increased R&D investment, incentivized by the program’s requirements, is a key mechanism behind these improvements.
    Keywords: Public Procurement, Environmental Policy, Firm Performance, Staggered Difference-in-difference
    JEL: D22 D44 H32 H57 Q54 Q58
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ewp:wpaper:474web
  22. By: Mehta, Soumya Kapoor; Gupta, Neelanjana
    Abstract: This paper focuses on the social dimensions of both climate change adaptation and mitigation actions in India. On the adaptation side, it documents how people and communities are coping and adapting to climate change, and whether these strategies and their costs vary by socio-economic vulnerability. It narrows in on actions that communities are taking to advance their resilience in climate hotspots in India and makes the case for locally led climate action and devolved climate financing, with an emphasis on empowering women as resilient champions. On the mitigation side, the paper describes the ambitious steps that India has taken towards climate change mitigation, the potential impacts they may have on India’s people (both positive and adverse), and challenges and opportunities presented, to make the case for a socially inclusive transition to low carbon energy. The paper concludes by laying down policy recommendations for India to ensure a people centered approach.
    Date: 2025–06–04
    URL: https://d.repec.org/n?u=RePEc:wbk:wbrwps:202022
  23. By: Maxime TERRIEUX
    Abstract: Despite a robust institutional framework and a broadly sound policy mix, Colombia’s economic model is running out of steam. For over a decade, since the end of the commodities supercycle, growth has been trending downward and socioeconomic indicators have stagnated, signs that the economy is stuck in the middle-income trap. This stagnation has exposed structural problems relating to productivity and underinvestment. More importantly, questions remain about the sustainability of the Colombian economic model in the medium-to-long term. Dependence on fossil fuels remains high, and given the impending depletion of the country’s reserves (around seven years’ supply of oil and gas remains), the need to diversify the economy, and the fight against climate change, a paradigm shift is needed.Although Gustavo Petro’s government has announces a move away from fossil fuels and a reindustrialization plan, no real diversification seems yet to be underway.The economy is also constrained by public finances pressures. Colombia lost its investment grade status in 2021, and despite a strengthened fiscal rule, it is struggling to reestablish its fiscal credibility in the eyes of investors.The doubly challenging context of a faltering economic model and constrained public finances calls for far-reaching changes. The energy transition offers a genuine opportunity to transform the economy and address the former problem. But the authorities’ capacity to implement the various strategies that have been set out, in particular a recent energy transition roadmap, remains to be proven, especially given the difficult political (absence of consensus) and security (failure of the Total Peace policy) context. Restoring fiscal credibility will also be crucial to establish a favorable environment for private investment, which is needed as the main driver of a new, sustainable economic model.
    Keywords: Colombie
    JEL: E
    Date: 2025–05–05
    URL: https://d.repec.org/n?u=RePEc:avg:wpaper:en18070
  24. By: Pineda, Jesus; Núñez-Mujica, Guido; Wang, Seaver; Sen, Drishti
    Abstract: Atomausstieg is Germany’s policy of moving away from nuclear power. A total of 17 nuclear power plants (NPPs) have been phased out since 2011. In this work we analyze the environmental and public health costs of Atomausstieg using hourly electricity generation data. The costs are quantified in two ways: estimated avoidable $CO_{2}$ emissions and estimated number of avoidable deaths and illness from air pollution. We find that the shutdown of NPPs led to an increase in avoidable carbon emissions and an increase in avoidable deaths and illnesses from air pollution derived from additional coal use. Without Atomausstieg, Germany could have avoided 230 million tons of $CO_{2}eq$ emissions, 5, 800 deaths, nearly 55, 900 severe illnesses and 3.29 million minor illnesses linked to air pollution. We also find that without the shutdowns, the average carbon intensity of the German grid would have decreased 48\%{} relative to current levels, and the share of electricity from fossil fuels would have been 26.6\%{} instead of the 46.92\%{} reported for 2023. Our study highlights the unintended effects of misguided energy and environmental policies that prioritized nuclear power plant decommissioning, with valuable insights for other countries considering shutting down their nuclear energy programs.
    Date: 2025–05–12
    URL: https://d.repec.org/n?u=RePEc:osf:osfxxx:r6djg_v1
  25. By: Goghie, Alexandru-Stefan
    Abstract: This article explores the geopolitical implications of China’s introduction of RMB-denominated oil futures contracts, framed through the lens of ‘power-as-autonomy’. It argues that this development marks a strategic shift in the global energy landscape, particularly within the highly dollarized oil market, where pricing and trade have historically been dominated by USD-denominated benchmarks - such as Brent and WTI. By seeking to create a parallel financial infrastructure, also manifested through these RMB-denominated oil futures contracts, China is pursuing a ‘de-dollarization’ strategy aimed at enhancing its autonomy from the United States (US). Through the examination of four key geopolitical outcomes of these RMB-denominated oil futures contracts - enhancing internationalization of the RMB, the reduction of the ‘Asian premium’ in crude oil markets, strengthened energy and financial security for China, and resistance to potential US-led sanctions - this article situates China’s efforts within the larger framework of geopolitical competition between the US and China, highlighting how this shift may reshape international trade relationships and challenges the dominance of dollarized markets.
    Date: 2025–05–11
    URL: https://d.repec.org/n?u=RePEc:osf:socarx:ftsg6_v2
  26. By: Stephen J. Lee; Cailinn Drouin
    Abstract: We present a novel framework for high-resolution forecasting of residential heating and electricity demand using probabilistic deep learning models. We focus specifically on providing hourly building-level electricity and heating demand forecasts for the residential sector. Leveraging multimodal building-level information -- including data on building footprint areas, heights, nearby building density, nearby building size, land use patterns, and high-resolution weather data -- and probabilistic modeling, our methods provide granular insights into demand heterogeneity. Validation at the building level underscores a step change improvement in performance relative to NREL's ResStock model, which has emerged as a research community standard for residential heating and electricity demand characterization. In building-level heating and electricity estimation backtests, our probabilistic models respectively achieve RMSE scores 18.3\% and 35.1\% lower than those based on ResStock. By offering an open-source, scalable, high-resolution platform for demand estimation and forecasting, this research advances the tools available for policymakers and grid planners, contributing to the broader effort to decarbonize the U.S. building stock and meeting climate objectives.
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2505.22873
  27. By: Barile, Lory (Department of Economics, University of Warwick); Guin, Benjamin (Bank of England); Sandi, Eleni (Department of Economics, University of Warwick)
    Abstract: Environmental policies can inadvertently increase transition risks, negatively impacting property prices. The Minimum Energy Effciency Standard (MEES), designed to enhance energy effciency in rental properties, may devalue sub-standard properties and can affect neighboring above-standard ones. Our study documents this spatial externality using a dataset that combines property transaction variables with energy effciency data at the postcode level. We construct a concentration measure for sub-standard properties and apply it to both aggregate and property- level analyses using a difference-in-differences approach. Our findings indicate that MEES comes with spatial externality on properties unaffected by the policy, with a 3.2% price decline in neighborhoods with higher concentrations of sub-standard housing.
    Keywords: Environmental policy ; Spatial externality ; House prices JEL Codes: Q01 ; Q49 ; Q58
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:wrk:warwec:1562
  28. By: Christopher R. Knittel; Gilbert E. Metcalf; Shereein Saraf
    Abstract: With the increase in fuel economy of the personal transportation fleet along with the increased penetration of hybrid and electric vehicles, federal motor vehicle fuel excise tax revenue has been steadily declining. This has led to calls for finding a replacement for this tax. One option is to replace the gas tax with a vehicle miles traveled (VMT) tax. To investigate the impact of such a tax swap, we combine data from the 2017 National Household Transportation Survey (NHTS) and the American Community Survey (ACS). Using machine learning techniques, we generate estimates of VMT and gasoline tax collections at the census tract level. This allows us to explore the distributional implications of this tax swap at a geographically disaggregated level. We find, as have previous researchers, that this tax swap is modestly progressive. Our more granular geographic analysis highlights striking disparities not previously reported. We find that rural areas and census tracts in the center of the country generally benefit from this tax swap, while urban and bicoastal areas generally experience higher taxation. Additionally, Republican-leaning districts, which overlap significantly with rural areas, see marked gains compared to Democratic districts.
    JEL: H22 H23 Q48 R48
    Date: 2025–06
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33894
  29. By: Cèlia Estruch-Garcia (Universitat de Barcelona & IEB); Albert Solé-Ollé (Universitat de Barcelona & IEB); Filippo Tassinari (Universitat Pompeu Fabra & BSE & IEB); Elisabet Viladecans-Marsal (Universitat de Barcelona & IEB & CEPR)
    Abstract: This paper explores the electoral effects of Barcelona's Superblocks pedestrianization policy, a green initiative designed to reduce car traffic and enhance urban environments. Using census tract-level data from the 2023 local elections, we assess the policy's impact on support for the incumbent mayor. Our findings reveal a positive and statistically significant increase in votes in areas directly affected by the policy, with benefits also extending to neighboring districts. Importantly, there is no evidence that the intervention led to traffic displacement, which suggests that such disruptions did not provoke electoral backlash. Further analysis indicates that the policy's effects are not driven by concerns over gentrification or mobility disruptions. Instead, the effects are stronger in more educated neighborhoods, pointing to the role of environmental attitudes in shaping political support. These results contribute to the literature on the political economy of green policies, underscoring the importance of localized impacts in shaping electoral outcomes and sustaining públic support for urban climate initiatives.
    Keywords: Green policies, Cities, Elections
    JEL: D72 Q58 R53
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ieb:wpaper:doc2025-01
  30. By: Junlian Gong; Jun Nagayasu
    Abstract: This study examines the impact of oil futures markets and production on the connectivity and speed of information transmission in a country’s spot oil market within the global network. First, we estimate the causal relationships between 12 spot oil markets using the existence and strength of transfer entropy as edges and weights to construct a series of dynamic networks for the global oil market. Second, we use a temporal network model to analyze changes in the connectivity, closeness, and betweenness of each oil market over different periods, and then compare these variations. Our findings indicate that Brent serves as the central hub of the global oil market, followed by the West Texas Intermediate and Minas markets. Moreover, the presence of oil futures markets significantly enhances the connectivity, information transmission speed, and hub role of spot markets. Oil production also positively impacts connectivity and betweenness; however, it does not have a significant relationship with the speed of information transmission.
    Date: 2025–06
    URL: https://d.repec.org/n?u=RePEc:toh:tupdaa:71
  31. By: Ren\'e A\"id; Xiangying Pang; Xiaolu Tan
    Abstract: We develop a continuous-time model of incentives for carbon emissive firms to exit the market based on a compensation payment identical to all firms. In our model, firms enjoy profits from production modeled as a simple geometric Brownian motion and do not bear any environmental damage from production. A regulator maximises the expected discounted value of firms profits from production minus environmental damages caused by production and proposes a compensation payment whose dynamics is known to the firms. We provide in both situations closed-form expressions for the compensation payment process and the exit thresholds of each firms. We apply our model to the crude oil market. We show that market concentration both reduces the total expected discounted payment to firms and the expected closing time of polluting assets. We extend this framework to the case of two countries each regulating its own market. The presence of a second mover advantage leads to the possibility of multiple equilibria. Applying this result to large producing countries, we find that they are unlikely to agree on the timing to exit market.
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2505.04301
  32. By: Ferid Belhaj
    Abstract: MENA faces a severe water crisis, with 12 of the world’s 17 most water-stressed countries. Climate change, population growth, inefficient water management, and weak governance drive this challenge. Water production, treatment, and distribution require high energy inputs, while energy generation depends on water for cooling and refining. The region must integrate renewable energy, especially solar power, into water solutions like desalination. Inaction could shrink GDP by up to 14% by 2050, while a $500 billion investment over the next decade could secure water resources. Key solutions include renewable-powered desalination, modernized water networks, large-scale wastewater recycling, and innovative financing through green bonds, public- private partnerships, and sovereign wealth funds. Regional collaboration on transboundary water management and shared desalination projects remains essential. MENA must act now. By integrating sustainable water-energy strategies, the region can secure its future and drive stability and growth.
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:ocp:pbcoen:pb016_25
  33. By: J. Scott Holladay (Department of Economics, University of Tennessee, Fellow, Howard B. Baker School for Public Policy); Justin R. Roush (Department of Economics, Xavier University)
    Abstract: We document significant variation in the relative pollution emissions of foreign owned and domestically owned manufacturing plants in the U.S. We use a sample of matched plant characteristics and pollution emissions to document the pollution emissions of foreign owned facilities relative to their competitors in the same industry. On average there is no difference in emissions intensity between domestic and foreign owned plants across all manufacturers, but in some industries foreign owned plants are much cleaner, while in others much dirtier. We show that the variation in relative pollution emissions of foreign owned manufacturing plants is correlated with industry characteristics: lower industry-level trade costs, higher fixed costs, and lower returns to agglomeration are associated with cleaner foreign owned plants. These results are consistent with a theoretical framework in which foreign plants have lower productivity, and therefore more pollution intensity, in industries where foreign ownership is more attractive relative to exporting.
    Keywords: Trade and environment, Firm heterogeneity, Plant-level emissions
    JEL: F1 Q5
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:ten:wpaper:2025-02
  34. By: Frattini, Federico Fabio; Vona, Francesco; Bontadini, Filippo; Colantone, Italo
    Abstract: What are the job multipliers of the green industrialization? We tackle this question within EU regions over the period 2003-2017, building a novel measure of green manufacturing penetration that combines green production and regional employment data. We estimate local job multipliers of green penetration in a long-difference model, using a shift-share instrument that exploits plausibly exogenous changes in non-EU green innovation. We find that a 3-years change in green penetration per worker increases the employment-to-active population ratio by 0.11 pp. The effect is: persistent both in manufacturing and outside manufacturing; halved by agglomeration effects that increase the labour market tightness; stronger for workers with high and low-education; and present also in regions specialized in polluting industries. When focusing on large shocks in a staggered DiD design, we find ten times larger effects, particularly in earlier periods.
    Keywords: Climate Change, Environmental Economics and Policy, Industrial Organization, Labor and Human Capital
    Date: 2025–06–04
    URL: https://d.repec.org/n?u=RePEc:ags:feemwp:358792
  35. By: Alice Lixuan Xu; Jorge S\'anchez Canales; Chiara Fusar Bassini; Lynn H. Kaack; Lion Hirth
    Abstract: In wholesale electricity markets, prices fluctuate widely from hour to hour and electricity generators price-hedge their output using longer-term contracts, such as monthly base futures. Consequently, the incentives they face to drive up the power prices by reducing supply has a high hourly specificity, and because of hedging, they regularly also face an incentive to depress prices by inflating supply. In this study, we explain the dynamics between hedging and market power abuse in wholesale electricity markets and use this framework to identify market power abuse in real markets. We estimate the hourly economic incentives to deviate from competitive behavior and examine the empirical association between such incentives and observed generation patterns. Exploiting hourly variation also controls for potential estimation bias that do not correlate with economic incentives at the hourly level, such as unobserved cost factors. Using data of individual generation units in Germany in a six-year period 2019-2024, we find that in hours where it is more profitable to inflate prices, companies indeed tend to withhold capacity. We find that the probability of a generation unit being withheld increases by about 1 % per euro increase in the net profit from withholding one megawatt of capacity. The opposite is also true for hours in which companies benefit financially from lower prices, where we find units being more likely to be pushed into the market by 0.3 % per euro increase in the net profit from capacity push-in. We interpret the result as empirical evidence of systematic market power abuse.
    Date: 2025–06
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2506.03808
  36. By: Amal Ben Khaled (University of Carthage, Tunisia Polytechnic School, LEGI, Tunisia; Université Côte d'Azur, CNRS, GREDEG, France); Rami Haj Kacem (University of Carthage, Tunisia Polytechnic School, LEGI, Tunisia); Nathalie Lazaric (Université Côte d'Azur, CNRS, GREDEG, France; University of Gothenburg, Sweden)
    Abstract: Digital platforms, ecosystems, and R&D-intensive sectors pose distinctive challenges for merger control. In these fast-evolving markets, shaped by technological change and shifting competitive dynamics, traditional ex-ante reviews often fall short in anticipating long-term outcomes. This paper proposes a multi-step merger control model that includes a mechanism for remedy revision, allowing authorities to adjust behavioral commitments during their implementation. By embedding structured flexibility into merger decisions, our approach enables remedies to evolve in response to market reconfigurations, strategic conduct, or regulatory insights. The framework aims to ensure that remedies remain proportionate, effective, and legally predictable. By bridging ex-ante assessment and ex-post adaptation, it offers a policy instrument better suited to the uncertainties of dynamic competition.
    Keywords: Energy transition index, governance, environmental taxes, Vector Error Correction Model, K-means
    JEL: Q58 Q48
    Date: 2025–06
    URL: https://d.repec.org/n?u=RePEc:gre:wpaper:2025-23
  37. By: Kowalska Malgorzata Agata; Delre Antonio (European Commission - JRC); Donatello Shane; Faraca Giorgia (European Commission - JRC); Wolf Oliver (European Commission - JRC)
    Abstract: Green public procurement (GPP) is a powerful tool to achieve environmental objectives by means of incorporation of green requirements into public sector purchasing contracts. Public authorities, by promoting âgreenâ purchases, incentivise an environmental outcome and foster market innovation as well as the transformation towards a sustainable economy. In order to âgreenâ the market, it is essential for producers to be able to make certifiable and credible green claims about their products and for customers to know what to ask for. While the EU Ecolabel policy can provide environmental references or standards for the former, the EU Green Public Procurement policy can provide for the latter. The EU GPP recommendations in this document are based on the EU Ecolabel criteria and intend to provide authorities with guidance on how to exploit the use of ecolabels in the procurement process. Accordingly, this report aims to bring these two policies together in order to find synergies between on the supply side EU Ecolabel policy and on the demand side EU GPP policy â specifically for the procurement of graphic paper, tissue paper and tissue products.In addition to a brief introduction to the EU Ecolabel policy, to the EU GPP policy and to procurement procedures as a whole, research is presented to support JRC recommendations to public procurers on exactly which green criteria to set when trying to procure environmentally friendly graphic paper, tissue paper and tissue products. The recommended environmental criteria focus on: (i) fibre sourcing; (ii) pulp bleaching; (iii) emissions to water and air; and (iv) energy consumption. For GPP criteria recommendations, both product groups, i.e. (i) graphic paper and (ii) tissue paper and tissue products, are addressed separately to the extent that reflects technological differences. Where relevant, further information is provided about why the criteria are relevant, the meaning of test results and what other ISO 14024 type I ecolabels may be considered equivalent.
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141293
  38. By: Mr. Jorge A Alvarez; Thomas Kroen
    Abstract: This paper investigates the relationship between energy prices and inflation dynamics in the context of the global inflation surge during the COVID-19 pandemic. Using a comprehensive sector-level dataset covering over 30 countries and a local projections empirical strategy, we extend previous studies that primarily focused on single-country analyses or aggregate inflation measures. Our findings indicate that while the energy shocks of 2021–2022 were remarkable, the degree of inflation passthrough of energy shocks appears to be relatively stable over time. Moreover, we show that energy price shocks significantly influence inflation through stable sectoral channels, with structural characteristics such as energy dependence and price flexibility playing critical roles in the passthrough mechanism. These results underscore the necessity of a sectoral perspective in understanding inflationary pressures and highlight the importance of detailed data on price-setting mechanisms and intersectoral connectivity in understanding the energy-inflation passthrough.
    Keywords: Inflation Passthrough; Energy Prices; Production Networks; Price Rigidities; Local Projections.
    Date: 2025–05–09
    URL: https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/091
  39. By: Lukas Franken; Andrew Lyden; Daniel Friedrich
    Abstract: More spatially granular electricity wholesale markets promise more efficient operation and better asset siting in highly renewable power systems. Great Britain is considering moving from its current single-price national wholesale market to a zonal design. Existing studies reach varying and difficult-to-reconcile conclusions about the desirability of a zonal market in GB, partly because they rely on models that vary in their transparency and assumptions about future power systems. Using a novel open-source electricity market model, calibrated to match observed network behaviour, this article quantifies consumer savings, unit-level producer surplus impacts, and broader socioeconomic benefits that would have arisen had a six-zone market operated in Great Britain during 2022-2024. In the absence of mitigating policies, it is estimated that during those three years GB consumers would save approximately {\pounds}9.4/MWh (equalling an average of more than {\pounds}2.3B per year), but generators in northern regions would experience revenue reductions of 30-40\%. Policy interventions can restore these units' national market revenues to up to 97\% while still preserving around {\pounds}3.1/MWh in consumer savings (about {\pounds}750M per year). It is further estimated that the current system could achieve approximately {\pounds}380-{\pounds}770 million in annual welfare gain during 2022-2024 through improved operational efficiency alone. The drivers behind these benefits, notably wind curtailment volumes, are expected to become more pronounced towards 2030, suggesting that purely operationally achieved annual benefits of around {\pounds}1-2 billion beyond 2029 are likely. It is found that the scale of these benefits would outweigh the potential downsides related to increases in the cost of capital that have been estimated elsewhere.
    Date: 2025–06
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2506.04107
  40. By: Yaroshevskyi, Artem
    Abstract: This study investigates how the transition to a green economy affects internal migration patterns across European Union regions. As carbon-intensive sectors decline due to decarbonization policies, certain regions experience structural economic changes that prompt labor reallocation and demographic shifts. Using a novel panel dataset at the NUTS-3 level (2011–2021), this paper estimates a series of random-effects models to assess how carbon-intensive regions differ in migration trends compared to unaffected areas. The analysis incorporates a range of socio-demographic and economic variables to test five hypotheses on the drivers of outmigration, including youth share, elderly population, regional wealth, and median male age. Results indicate that regions classified as “affected” by the green transition exhibit significantly higher outmigration rates. Moreover, interaction effects show that aging male populations amplify these migration trends, while other moderators—such as GDP per capita and youth share—have no significant impact. These findings contribute to the literature on just transitions by highlighting how demographic composition mediates the adverse effects of green restructuring. The paper emphasizes the need for targeted regional policies, particularly in aging and economically vulnerable areas, to ensure equitable outcomes of green economic transitions.
    Keywords: Green transition, internal migration, carbon-intensive regions, demographic structure, panel data, just transition, NUTS-3 regions, labor mobility.
    JEL: Q20 Q40 Q50
    Date: 2025–05–01
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124870
  41. By: Blanco Sara (European Commission - JRC); Arcipowska Aleksandra (European Commission - JRC); Fiorese Giulia; Maury Thibaut (European Commission - JRC); Napolano Loredana (European Commission - JRC)
    Abstract: The steel industry is a major contributor to global greenhouse gas (GHG) emissions, accounting for approximately 7% of worldwide emissions. As steelmakers in the EU invest heavily in decarbonisation, the success of these efforts hinges on the marketâs ability to differentiate and reward low-carbon emissions steel production. In response, multiple initiatives and standards have emerged to define ""low-carbon emissions steel"" and set corresponding emissions thresholds. However, the lack of a unified definition and harmonised criteria presents significant challenges for policymakers, industry stakeholders, and investors alike. This report presents a comparative analysis of major international initiatives and standards, assessing their methodological approaches, system boundaries, and quantitative emissions thresholds. The findings reveal substantial inconsistencies in scope, system boundaries, and emissions accounting methodologies, which undermine comparability across frameworks, affecting market transparency and fair competition. Nonetheless, despite these divergences, the study identifies a trend toward long-term alignment, with most initiatives targeting similar emissions intensities by 2050.
    Date: 2025–04
    URL: https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc141817
  42. By: Pol Campos-Mercade; Claes Ek; Magnus Soderberg; Florian H. Schneider
    Abstract: Standard economic theory assumes that consumers ignore the externalities they create, such as emissions from burning fossil fuels and generating waste. In an incentivized study (N = 3, 718), we find that most people forgo substantial gains to avoid imposing negative externalities on others. Using administrative data on household waste, we show a clear link between such prosociality and waste behavior: prosociality predicts lower residual waste generation and higher waste sorting. Prosociality also predicts survey-reported pro-environmental behaviors such as lowering indoor temperature, limiting air travel, and consuming eco-friendly products. These findings highlight the importance of considering social preferences in environmental policy.
    Keywords: social preferences, prosociality, environmental behaviors, externalities
    JEL: D01 D62 Q53
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:ces:ceswps:_11895
  43. By: Fatih Kansoy; Dominykas Stasiulaitis
    Abstract: The rapid growth of sustainable investing—now exceeding $35 trillion globally—has transformed financial markets, yet the implications for monetary policy transmis sion remain unexplored. While extensive literature documents heterogeneous firm responses to monetary policy through traditional channels like size and leverage, whether environmental, social, and governance (ESG) characteristics create distinct transmission mechanisms is unknown. Using high-frequency identification around 160 Federal Reserve announcements (2005-2025), we uncover an asymmetric pattern: high-ESG firms gain 1.6 basis points protection from contractionary target surprises yet suffer 2.6 basis points greater sensitivity to forward guidance shocks. This asymmetry persists within industries and intensifies with investor climate awareness. Remarkably, the Paris Agreement inverted these relationships—before December 2015, high-ESG firms were more vulnerable to contractionary policy within industries; afterward, they gained protection, a 186 basis point reversal. We develop a two-period model featuring heterogeneous investors with sustainability preferences that quantitatively matches these patterns. The model reveals how ESG investors’ non-pecuniary utility creates differential demand elasticities, simultaneously protecting green firms from imme diate rate changes while amplifying forward guidance vulnerability through their longer investment horizons. These findings establish environmental characteristics as a new dimension of monetary policy non-neutrality, with profound implications as sustainable finance continues expanding.
    Date: 2025–06–02
    URL: https://d.repec.org/n?u=RePEc:oxf:wpaper:1082
  44. By: Halkos, George; Aslanidis, Panagiotis-Stavros
    Abstract: This report examines the interlinkages between the environmental topic-specific cross-sector European Sustainability Reporting Standards (ESRS) within the broader frameworks of Corporate Social Responsibility (CSR) and Environmental, Social, and Governance (ESG) principles. The environmental ESRS offer a structured approach for companies to assess and disclose their environmental impacts, risks, and opportunities (IROs), focusing on five key areas: (i) climate change, (ii) pollution, (iii) water and marine resources, (iv) biodiversity, and (v) resource use. These standards aim to enable transparent and comparable sustainability reporting across sectors while aligning corporate strategies with EU sustainability objectives. The integration of such standards can support companies’ efforts in implementing more effectively CSR initiatives and ESG performance; thus, fostering accountability, resilience, and long-term value creation. Ultimately, the interconnections between the environmental ESRS underscore the complexity and interdependence of environmental challenges, promoting a holistic approach to further achieve Sustainable Development Goals (SDGs).
    Keywords: CSR; ESG; CSRD; SDGs; European green deal.
    JEL: M14 Q01 Q50 Q56
    Date: 2025–06–11
    URL: https://d.repec.org/n?u=RePEc:pra:mprapa:124991
  45. By: Ziming Wang
    Keywords: Patent pledge, intellectual property strategy, ecosystem, invention diffusion, electric vehicles, Tesla
    JEL: O30 O32 O34
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2510
  46. By: Leonardo Tariffi (Universitat de Barcelona, CIVREF)
    Abstract: This paper shows what the main inflation macroeconomics drivers in Spain are. Even if there has been a less than two-digit inflation in the last three decades, it can be emphasized the fact that the inflation rate has raised and declined rapidly in recent years because of its fundamental determinants. Main reasons behind the behaviour of the consumption price index are related to higher prices in the energy sector and a higher government expenditure, particularly after the post-pandemic economy re-opening. Proxy variables such as oil prices free on board in the European Brent market, the 12 months Euribor interest rate of the Economic and Monetary Union, the nominal gross domestic product, the government expenditure of the public administration, and fiscal deficits in terms of the gross domestic product are those variables in which the consumer price index depends on. Changes on interest rates have managed to stabilized inflation rates once again, thereby diminishing the percentage change in the consumer price index.
    Keywords: Inflation rate, Consumer Price Index, Central Banks, Hydrocarbon Fuels
    JEL: E31 E58 L71
    Date: 2024
    URL: https://d.repec.org/n?u=RePEc:ewp:wpaper:480web
  47. By: Salvatore Amico Roxas; Matteo Cuda; Marina Kisvarday; Filippo Munisteri; Francesco Scotti
    Abstract: National Promotional Banks and Institutions (NPBIs) are state-owned or partially state-owned financial entities mandated to pursue specific socioeconomic objectives. Their role has been widely analysed in the literature, particularly in relation to sustainable development and addressing market failures. NPBIs contribute to long-term investments by financing socially desirable projects, often acting countercyclically and providing financial support where private investment is insufficient. They also operate under an “additionality” logic, ensuring that their funding complements rather than replaces private sector investment. Recent regulatory developments, such as the Non-Financial Reporting Directive (NFRD) and the Corporate Sustainability Reporting Directive (CSRD), have increased transparency regarding NPBIs’ impact on sustainability. However, research has not yet fully assessed their ability to implement proactive strategies aligned with the Sustainable Development Goals (SDGs). While studies have examined their contributions to carbon abatement and clean innovation, other key sustainability dimensions, such as water, sanitation, and biodiversity, remain underexplored. Additionally, existing literature often conflates NPBIs with broader public finance mechanisms, failing to distinguish their specific contributions. This paper addresses these gaps by analysing how NPBIs in Europe align their strategies with SDGs. It examines their impact across different sustainability dimensions and explores the correlation between NPBIs' actions and national progress on SDGs. The study also considers the evolving role of NPBIs in the EU policy landscape, particularly regarding the green transition and financial instruments such as InvestEU. Findings of this research show that NPBIs are highly committed to delivering sustainable goals and SDGs, but while historically counter-cyclical, in this analysis NPBIs prioritize long-term policy goals, such as green and digital transitions, which may reduce their flexibility in responding to short-term economic crises. This trade-off highlights the need for a strategic balance between long-term structural objectives and economic resilience, making these findings particularly relevant for policymakers, academia and strategists.
    JEL: G23 M14 O19 Q58
    Date: 2025–03
    URL: https://d.repec.org/n?u=RePEc:euf:dispap:220
  48. By: Zachary H. Thomas; Ellen D. Williams; Kavita Surana; Morgan R. Edwards
    Abstract: Accelerating climate-tech innovation in the formative stage of the technology life cycle is crucial to meeting climate policy goals. During this period, competing technologies are often undergoing major technical improvements within a nascent value chain. We analyze this formative stage for 14 climate-tech sectors using a dataset of 4, 172 North American firms receiving 12, 929 early-stage private investments between 2006 and 2021. Investments in these firms reveal that commercialization occurs in five distinct product clusters across the value chain. Only 15% of firms develop end products (i.e., downstream products bought by consumers), while 59% support these end products through components, manufacturing processes, or optimization products, and 26% develop business services. Detailed analysis of the temporal evolution of investments reveals the driving forces behind the technologies that commercialize, such as innovation spillovers, coalescence around a dominant design, and flexible regulatory frameworks. We identify three patterns of innovation: emerging innovation (e.g., agriculture), characterized by recent growth in private investments across most product clusters and spillover from other sectors; ongoing innovation (e.g., energy storage), characterized by multiple waves of investments in evolving products; and maturing innovation (e.g., energy efficiency), characterized by a dominant end product with a significant share of investments in optimization and services. Understanding the development of nascent value chains can inform policy design to best support scaling of climate-tech by identifying underfunded elements in the value chain and supporting development of a full value chain rather than only end products.
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:arx:papers:2506.00010
  49. By: Schulze, Meike
    Abstract: Diversifying the supply of mineral resources is a strategic necessity - one in which resource-rich countries of the Global South play a crucial role. Zambia, which is a major global copper exporter and possesses other critical raw materials, is seeking long-term alliances that will mobilise investment and promote local value creation. The EU has taken the first step towards cooperation with the strategic raw material partnership. But if it is to remain competitive in the geopolitical arena, a stronger industrial policy foundation will be needed. That includes a coherent raw material foreign policy aligned with the "Team Europe" approach and targeted financial instruments to support industrial cooperation.
    Keywords: EU, Zambia, diversifying, supply of mineral raw materials, Global South, copper, critical raw materials, strategic raw material partnership, "Team Europe" approach
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:swpcom:318313
  50. By: Marín, Anabel
    Abstract: En décadas recientes se ha intensificado la demanda de recursos naturales desde América Latina y el Caribe para atender nuevos requerimientos, como los de la transición energética que necesita minerales abundantes en la región y fuentes de energías limpias como el aire y el agua, de nuevo abundantes en la región. Existe además un interés creciente en fomentar procesos de agregación de valor e incrementar los beneficios asociados a la explotación y exportación de los recursos. No obstante, esta tendencia ha generado también una creciente resistencia social a los grandes proyectos orientados a la explotación de recursos naturales. La conflictividad socio ambiental ha venido creciendo y haciéndose cada vez más visible. En este artículo se presentan propuestas para utilizarla para promover procesos de transición territorial en direcciones más sustentables. Los conflictos sin embargo no se traducen en cambios de manera automática. Es necesario “gestionarla” con modelos de gobernanza innovadores que involucren democratización de las decisiones y que tengan como objetivo explícito la innovación. Al respecto se han propuesto diferentes modelos de participación ciudadana e involucramiento de las poblaciones locales para gestionar los conflictos. En este artículo se discuten tres modelos estilizados de involucramiento, y se analizan de acuerdo a su potencial transformador.
    Date: 2025–03–18
    URL: https://d.repec.org/n?u=RePEc:ecr:col046:81390
  51. By: Kölschbach Ortego, Axel; Gassen, Nicolas; Steitz, Janek
    Abstract: Damit die Energiewende gelingt, muss die deutsche Energieinfrastruktur (Stromübertragungsnetze und Stromverteilnetze) umfassend ausgebaut werden. Es sind Investitionen von mehreren hundert Milliarden Euro nötig. Ein erheblicher Teil davon entfällt auf den Bedarf an zusätzlichem Eigenkapital. Unter den aktuellen regulatorischen und finanziellen Bedingungen gelingt es den Energieversorgungsunternehmen jedoch nicht, das notwendige Kapital zu mobilisieren. Dies gefährdet das Gelingen der Energiewende insgesamt. Um das nötige Eigenkapital zu mobilisieren, schlagen wir eine Kombination aus verstärkter Einbindung privaten Kapitals und staatlichen Beteiligungen vor. Dadurch sichern wir den Ausbau der Netze langfristig ab. Gleichzeitig können die Netzentgelte durch das vorgeschlagene Finanzierungsmodell deutlich gesenkt werden. Im Stromnetzbereich sollte privates Kapital gezielt aktiviert werden. Dazu sollte die regulatorische Eigenkapitalverzinsung moderat erhöht werden. Vor allem für Verteilnetzbetreiber mit eingeschränktem Zugang zum Kapitalmarkt empfehlen wir ein staatlich koordiniertes Fondssystem, das den Zugang zu privatem Kapital erheblich erleichtert. Ergänzend zu dieser stärkeren Einbindung privater Investoren soll der Staat zusätzliches Eigenkapital durch Beteiligungen an Übertragungsnetzbetreibern und Verteilnetzbetreibern bereitstellen. Das Zinsdifferential zwischen der relativ hohen Rendite der Eigenkapitalbeteiligungen und den deutlich günstigeren staatlichen Finanzierungskonditionen ermöglicht es, dass der Staat mit den erzielten Dividenden die Netzentgelte direkt bezuschussen kann. So werden Verbraucher finanziell entlastet und gleichzeitig wird der Netzausbau beschleunigt.
    Keywords: Energiewende, Netzausbau, Strompreis
    Date: 2025
    URL: https://d.repec.org/n?u=RePEc:zbw:dzimps:319293
  52. By: Jian, Wenze; Zhong, Ziqi
    Abstract: This study investigates how eco-positioning strategies influence consumers’ evaluations of fashion brands, their willingness to pay for eco-friendly fashion products, and their sustainable fashion consumption intentions. Based on the Theory of Planned Behavior and the Value-Belief-Norm Theory, this study constructs an integrated analysis framework. Data were collected through a structured online experiment, wherein participants completed three randomized experimental modules, each testing a distinct dependent variable. Within each module, participants were independently assigned to different eco-positioning stimuli. The results indicate that eco-positioning significantly affects brand evaluation and purchase intention, with process-related eco-positioning having a stronger effect. High brand familiarity enhances the effectiveness of eco-positioning strategies. Strong eco-positioning remarkably increases consumers’ willingness to pay, with perceived environmental sustainability playing an important mediating role. Additionally, sustainable fashion consumption intention under eco-positioning advertising is markedly higher than that under other advertising conditions, with environmental concern and fashion involvement acting as key moderating factors.
    Keywords: fashion marketing; eco-positioning; consumer perception; sustainability
    JEL: L81
    Date: 2025–05–21
    URL: https://d.repec.org/n?u=RePEc:ehl:lserod:128137
  53. By: Laura Alfaro; Harald Fadinger; Jan S. Schymik; Gede Virananda
    Abstract: Trade and industrial policies, while primarily intended to support domestic industries, may unintentionally stimulate technological progress abroad. We document this mechanism in the case of rare earth elements (REEs) – critical inputs for manufacturing at the knowledge frontier, with low elasticity of substitution, inelastic supply, and high production and processing concentration. To assess the importance of REEs across industries, we construct an input-output table that includes disaggregated REE inputs. Using REE-related patents categorized by a large language model, sectoral TFP data, trade data, and physical and chemical substitution properties of REEs, we show that the introduction of REE export restrictions by China led to a global surge in innovation and exports in REE-intensive downstream sectors outside of China. To rationalize these findings and quantify the global impact of the adverse REE supply shock, we develop a quantitative general equilibrium model of trade and directed technological change. We also propose a structural method to estimate sectoral input substitution elasticities for REEs from patent data and find REEs to be complementary inputs. Under endogenous technologies and with complementary inputs, input supply restrictions on REEs induce a surge in REE-enhancing innovation and lead to an expansion of REE-intensive downstream sectors.
    JEL: E0 E6 F02 F13 F14 F42 F6 O1 O33 O47
    Date: 2025–05
    URL: https://d.repec.org/n?u=RePEc:nbr:nberwo:33877

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