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on Energy Economics |
| By: | Eisenbarth, Sabrina; Day, Brett; Golub, Alla; Baldos, Uris Lantz C. |
| Keywords: | Environmental Economics and Policy, Research Methods/Statistical Methods, Land Economics/Use |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343765 |
| By: | Ravazzolo, Francesco; Rossini, Luca; Viselli, Andrea |
| Abstract: | This paper introduces a novel Bayesian reverse unrestricted mixed-frequency model applied to a panel of nine European electricity markets. Our model analyzes the impact of daily fossil fuel prices and hourly renewable energy generation on hourly electricity prices, employing a hierarchical structure to capture cross-country interdependencies and idiosyncratic factors. The inclusion of random effects demonstrates that electricity market integration both mitigates and amplifies shocks. Our results highlight that while renewable energy sources consistently reduce electricity prices across all countries, gas prices remain a dominant driver of cross-country electricity price disparities and instability. This finding underscores the critical importance of energy diversification, above all on renewable energy sources, and coordinated fossil fuel supply strategies for bolstering European energy security. |
| Keywords: | Environmental Economics and Policy, Resource/Energy Economics and Policy, Sustainability |
| Date: | 2025–11–12 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:376266 |
| By: | Phoebe Koundouri; Miranda McLannahan; Giannis Arampatzidis; Angelos Alamanos; Dimitris Raptis |
| Abstract: | This paper investigates cost-optimal electricity generation pathways for Europe to achieve carbon neutrality by 2050. Using a pan-European optimization framework developed in the Low Energy Analysis Platform (LEAP) with its NEMO least-cost solver, the study models 35 interconnected countries and incorporates harmonized technology costs, fuel prices and electricity demand projections. The model minimizes total discounted system costs while allowing cross-border trade to capture the effect of transmission on balancing variable renewable energy. Results indicate significant geographical disparities in decarbonization trajectories: by 2050, 14 countries achieve fully renewable electricity systems, while others continue to rely on biomass or nuclear due to capacity and land constraints. Large-scale renewable deployment increases generation costs in several regions, whereas early adopters benefit from long-term fuel savings and export opportunities. Cross-border electricity flows prove essential for system stability and cost efficiency, emphasizing the importance of interconnection and aligned national strategies. Our findings highlight both the feasibility and complexity of a coordinated European energy transition and offer policy recommendations regarding infrastructure investment, decarbonization alignment and targeted support for lagging regions. The study underscores the need for improved spatial and temporal cost datasets to enhance future policy-relevant modelling. |
| Keywords: | Energy, LEAP, Emissions, Least-Cost Optimization, Europe, Sustainable development |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:aue:wpaper:2567 |
| By: | Jorge S\'anchez Canales; Alice Lixuan Xu; Chiara Fusar Bassini; Lynn H. Kaack; Lion Hirth |
| Abstract: | Researchers and electricity sector practitioners frequently require the supply curve of electricity markets and the price elasticity of supply for purposes such as price forecasting, policy analyses or market power assessment. It is common practice to construct supply curves from engineering data such as installed capacity and fuel prices. In this study, we propose a data-driven methodology to estimate the supply curve of electricity market empirically, i.e. from observed prices and quantities without further modeling assumptions. Due to the massive swings in fuel prices during the European energy crisis, a central task is detecting periods of stable supply curves. To this end, we implement two alternative clustering methods, one based on the fundamental drivers of electricity supply and the other directly on observed market outcomes. We apply our methods to the German electricity market between 2019 and 2024. We find that both approaches identify almost identical regimes shifts, supporting the idea of stable supply regimes stemming from stable drivers. Supply conditions are often stable for extended periods, but evolved rapidly during the energy crisis, triggering a rapid succession of regimes. Fuel prices were the dominant drivers of regime shifts, while conventional plant availability and the nuclear phase-out play a comparatively minor role. Our approach produces empirical supply curves suitable for causal inference and counterfactual analysis of market outcomes. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.23068 |
| By: | Emre Akusta |
| Abstract: | This study analyzes the potential of renewable energy sources to reduce the environmental impact of military expenditures in Turkiye. ARDL method is preferred in the analysis using annual data for the period 1990-2021. In addition, an interaction term is added to the model to determine the effectiveness of renewable energy sources. The results show that military expenditures have a positive impact on CO2 emissions in the short and long run with coefficients of 0.260 and 0.196, respectively. Moreover, renewable energy use has a statistically significant negative impact on CO2 emissions in the short and long run with coefficients of -0.119 and -0.120, respectively. GDP has a positive impact on CO2 emissions in the short and long run with coefficients of 0.162 and 0.193, respectively. Although population growth does not have a statistically significant impact in the short run, it is found to increase CO2 emissions in the long run with a coefficient of 0.095. Moreover, the interaction term shows that renewable energy use reduces the environmental impact of military expenditures in Turkiye in the short and long run with coefficients of -0.130 and -0.140, respectively. The results indicate that renewable energy use can play an important role in mitigating the environmental impacts of military expenditures. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.04467 |
| By: | Beatrice Pataracchia; Philipp Pfeiffer; Marco Ratto; Jan Teresiński |
| Abstract: | We estimate a large-scale open-economy DSGE model to assess the role of energy commodity prices in euro area inflation and short-run output dynamics. The model features rich pass-through from energy import prices to consumer and producer prices, distinguishing between natural gas and crude oil and their use in both consumption and production. Transmission is quantified through direct effects on household energy consumption, indirect effects via energy as an intermediate input, and second-round general-equilibrium effects through, for example, wages and markups. Bayesian estimation suggests that in 2022, shocks to energy import prices alone added about 2 percentage points (pps) to inflation. Integrating broader energy measures increases this contribution to over half of the 2021–22 surge (to around 3 pps). Backward-looking indexation, often associated with wage–price spirals, is estimated to be limited. The post-2020 surge leaves substitution elasticities broadly unchanged but points to a steeper Phillips curve and slightly lower real wage rigidity. |
| JEL: | C51 E31 F41 Q43 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:euf:dispap:233 |
| By: | Ferrer, Jimy; De Miguel, Carlos J.; Lorenzo, Santiago; Alatorre, José Eduardo |
| Abstract: | This document presents an overview of carbon pricing policies in Latin America and the Caribbean. It focuses on the characteristics of carbon pricing instruments, both explicit, such as carbon taxes and emissions trading systems, and implicit, such as fuel taxes, the social price of carbon and the reduction of fossil fuel subsidies. The document also provides an analysis of the effects of related policies (e.g. subsidies and elasticities) on the effectiveness of carbon pricing, and includes the estimation of an econometric model that measures the effectiveness of carbon pricing in terms of reducing emissions. The results of this estimation identify a statistical link between the carbon tax rate and a reduction in emissions in the five countries of the region that implement a carbon tax. However, to ensure that carbon taxes are an effective public policy instrument for reducing emissions, they must be coordinated and consistent with other policies. |
| Date: | 2025–11–05 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:83165 |
| By: | Cohen, Adam; Shaheen, Susan A. |
| Abstract: | Advanced air mobility, also known as AAM, is a broad concept focusing on emerging aviation markets and use cases for on-demand aviation in urban, suburban, and rural communities (Cohen et al., 2024). AAM includes local use cases of about an 80 km radius in rural or urban areas and intraregional use cases of up to approximately 500 km. |
| Keywords: | Engineering |
| Date: | 2025–11–11 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt9v88s6pr |
| By: | Musibau, Hammed (School of Economics and Public Policy, University of Adelaide, Adelaide, Australia); Nepal, Rabindra (School of Business, Faculty of Business and Law, University of Wollongong, Wollongong, Australia); Jamasb, Tooraj (Department of Economics, Copenhagen Business School) |
| Abstract: | This study investigates environmental impacts of wealth inequality, and the moderating roles of governance quality, education, and readiness for green transition. Using CO2 emissions as a multidimensional indicator, the study employs panel data from 216 countries (1970-2023) and IV-2SLS methodology. Findings suggest equitable societies achieve better environmental outcomes through social cohesion and inclusive governance. Strong institutions, education access, and renewable energy investments mitigate inequality's environmental effects. |
| Keywords: | Wealth Inequality; Environmental Degradation; Governance; Green Energy; Education; Sustainable Development |
| JEL: | C33 H23 I25 O44 Q56 |
| Date: | 2025–08–27 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2025_008 |
| By: | Emre Akusta; Raif Cergibozan |
| Abstract: | The aim of this study is to prioritize renewable energy sources to achieve sustainable development in Turkiye by using fuzzy AHP method. In our study, we used 30 criteria that affect the investment in renewable energy sources. We also calculated the weights of these criteria in investment decisions. In addition, we analyzed the advantageous renewable energy sources according to each criterion. Thus, it was determined which renewable energy source is advantageous according to which criteria. The results show that the most important main criteria for renewable energy investments in Turkiye are economic, political, technical, environmental and social criteria, respectively. The most appropriate renewable energy sources according to economic, political, technical and social criteria are solar, wind, hydroelectric, |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.05444 |
| By: | Yassine, Ziad; Shaheen, Susan A. |
| Abstract: | The transition toward electric vehicles (EVs) represents a pivotal shift in transportation technology, promising significant environmental benefits through reduced greenhouse gas emissions and decreased dependence on fossil fuels. However, the integration of EVs presents unique challenges and opportunities within the context of social equity. EVs have emerged as a key technology in the evolution of transportation, with their history tracing back to the late ninteenth century. |
| Keywords: | Engineering |
| Date: | 2025–11–11 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsrrp:qt7pb0s2db |
| By: | Volker, Jamey |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewed academic literature and has detailed discussions of study selection and methodological issues.VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizes can be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effect sizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt6p48d3b2 |
| By: | Simona Pojar; Johanna Bärnreuther |
| Abstract: | Numerous workstreams have been developed to foster more climate- and environmentally friendly public and private financial management systems. They include green budgeting at national level, meaning using the tools of budgetary policymaking to help achieve climate and environmental goals, green mainstreaming of the EU budget, climate tracking under the various EU funding programmes, minimum spending requirements contributing to climate objectives, including in the recovery and resilience plans, the EU Taxonomy for sustainable finance, the ‘Do No Significant Harm’ principle, a methodology to identify environmentally harmful subsidies, and green bond standards. Since these workstreams and the related tools are rooted in policy commitments taken in different contexts and times, harmonising, integrating and mutually reinforcing their implementation, where appropriate, would help guide policy makers. This paper takes stock of workstreams and associated tools and investigates existing and potential links between them, as well as challenges in creating such links. It also presents good practices from Member States. For green budgeting, the paper suggests that there is no single “optimal” combination of tools, but that practices need to be tailored to the national context. Close cooperation between the ministries and departments involved, transparency, and a stepwise approach are crucial to ensuring coherence between various green workstreams to strengthen their effectiveness and raise the efficiency of their application. |
| JEL: | H5 H61 Q58 Q51 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:euf:dispap:230 |
| By: | Jiashu Zhu; Wenbin Zhou; Laura Diaz Anadon; Shixiang Zhu |
| Abstract: | Residential solar photovoltaic (PV) systems are a cornerstone of residential decarbonization and energy resilience. However, most existing systems are PV-only and cannot provide backup power during grid failures. Here, we present a high-resolution analysis of 377, 726 households in Indianapolis, US, quantifying how power outages influence the installation of PV-only systems between 2014 and 2023. Using a two-part econometric panel model, we estimate the causal effect of power outage exposure and project future risks under a middle of the road climate scenario (RCP 4.5). We find that each additional hour of annual outage duration per household lowers the new-installation rate by 0.012 percentage points per year, equivalent to a 31% decline relative to the historical mean (2014-2023). With outage duration and frequency projected to double by 2040, these results reveal a potential vicious cycle between grid unreliability and slower decarbonization, calling for policies that integrate grid resilience and clean-energy goals. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.05027 |
| By: | Chiara Falco (Department of Environmental Science and Policy, University of Milano); Valentina Raimondi (Department of Environmental Science and Policy, University of Milano) |
| Abstract: | In Brazil, hydropower generates more than 60% of the national electricity supply, placing the country among the most hydropower-dependent economies worldwide. This study analyses the causal impact of dam construction on forest loss in Brazil using a new municipality-level panel dataset covering 379 dams, combined with high-resolution satellite data on forest coverage, among other variables. Applying modern staggered difference-indifferences estimators and a dynamic event study, we find that dams reduce forest cover by almost 9% percent in the municipality. No anticipatory effects are detected, but postconstruction losses increase steadily over time. Mechanism show that forest loss occurs mainly through cropland expansion, with smaller increases in pasture and higher agricultural value added. Effects are concentrated in the North and North-East regions, amplified in municipalities with high public land shares and unequal land distribution, consistent with persistent institutional legacies. Our results highlight that while hydropower enhances energy security, it entails substantial environmental costs requiring stronger land governance. |
| Keywords: | Hydropower dam, forest loss, land use change, institutions |
| JEL: | Q56 Q15 O13 |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.29 |
| By: | Laura Alfaro; Harald Fadinger; Jan 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, 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. |
| Keywords: | Trade Restrictions, Industrial Policy, Global Value Chains, Rare Earths, Directed Technological Change, Input-Output Linkages, Downstream Sectors, Innovation |
| JEL: | F13 F14 F42 O33 O47 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_720 |
| By: | Rainald Borck; Matthias Kalkuhl; Kai Lessmann |
| Abstract: | The work-from-home (WFH) revolution is reshaping economic activities and location choices with potentially important implications for environmental pollution. We use a quantitative spatial model calibrated to the German economy to assess the effects of increasing WFH from pre- to post-pandemic levels on pollution from commuting, residential and office buildings, and industrial production. We find that residential population moves from large cities to suburbs and smaller cities, while jobs concentrate in urban centers. A decrease in equilibrium commuting frequency by 18 percentage points reduces nation-wide emission of particulate matter (PM2.5) by 1.9% and carbon dioxide emissions by 2.2%. Commuting emissions decrease by 20.2% – despite a substantial rebound effect induced by a 9% increase in commuting distances. Residential emissions barely change, while there is a shift from on-site to remote office emissions. Pollution falls most strongly in rural counties and least in dense urban ones. |
| Keywords: | work from home, pollution, commuting, energy use |
| JEL: | Q53 Q54 R12 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_12300 |
| By: | Bagnoli, Lisa Serena; Balza, Lenin; Belmar, José; Matías, David |
| Abstract: | Changing weather patterns pose a fundamental challenge to electricity systems reliant on water resources. Using two decades of plant-level generation and fuel input data matched to hydrological basins in Chile, we show that local droughts reduce hydro output by about 20% on average and trigger sharp increases in thermal generation among plants with spare capacity. This substitution cushions short-run losses in supply and guarantees reliability of the system but creates a double burden for affected regions, which face both water scarcity and increases in local pollution. At the aggregate level, emissions from high-capacity thermal plants rise by roughly 34% during system-wide droughts, corresponding to about 1.4--1.8% of annual national emissions and 5.5--6.5% of the power sector's total. We also document that prolonged droughts were followed by expansions in thermal capacity, consistent with long-run lock-in of high-carbon-intensity technologies. Together, these results provide quantitative benchmarks for infrastructure planning, highlight the risk of path dependence in investment under climatic stress, and underscore the importance of ensuring sufficient capacity, diversification, and resilience in power system planning. |
| Keywords: | Droughts;Hydropower generation;Thermal generation;Electricity systems;emissions;Latin America and the Caribbean |
| JEL: | Q54 Q41 Q25 O54 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:idb:brikps:14412 |
| By: | Giacomo Benini (Department of Business and Management Science, Norwegian School of Economics); Erik Enstad (Department of Business and Management Science, Norwegian School of Economics); Amare Alemaye Mersha (Department of Economics, Management and Quantitative Methods, University of Milan); Luca Rossini (Department of Economics, Management and Quantitative Methods, University of Milan; Fondazione Eni Enrico Mattei) |
| Abstract: | This study provides the first global, plant-level analysis of technical and environmental efficiency in steel production using data from 143 mills across 50 countries (2019–2023). Using a Stochastic Directional Distance Function, we estimate plants’ distance to the frontier and compute shadow prices of CO2e emissions. Results show efficient electric arc furnace mini-mills, common in North America, face high abatement costs and low inefficiency. Conversely, integrated plants in developing countries are inefficient but can abate cheaply, with Europe in between. Shadow prices remain well below carbon market rates, underscoring the need for tailored climate policies. |
| Keywords: | Decarbonization, Environmental Efficiency, Shadow Price of Emissions, Steel Industry, Stochastic Directional Distance Function, Technical Efficiency |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.22 |
| By: | Rong, Rong; Crago, Christine L.; Wang, Rui |
| Keywords: | Resource/Energy Economics and Policy, Environmental Economics and Policy, Institutional and Behavioral Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343734 |
| By: | Bas Gorrens |
| Abstract: | Carbon pricing is a central policy instrument for reducing emissions, but governments face a trade-off: faster decarbonization can raise output losses and carbon leakage, while gradual implementa-tion slows emission reductions. This paper studies how EU carbon policies have shaped firms’ adoption of abatement technologies and identifies the optimal trajectory to reach the EU’s 2050 net zero target, particularly in a unilateral context. I develop a dynamic heterogeneous-firm model in which forward-looking manufacturing firms choose when to adopt discrete abatement technologies under a gradually tightening carbon price. I estimate it using panel data on EU ETS firms from 2005-2019. The model rationalizes the low carbon prices of the 2010s as a consequence of gradual policy and firm anticipation. Emission reduc-tions arise mainly from large, productive, and initially polluting firms. Anticipation of future tightening mitigates half of the short-run output losses in 2025 and two-thirds by 2050, keeping overall output losses below 2%. A moderately faster tightening could cut cumulative emissions by 15% at an additional cost of only 0.11% of output. Finally, because firms anticipate future policy changes, unilateral and global carbon pricing yield nearly identical effects on domestic output and carbon leakage. |
| Keywords: | trade and environment, technology adoption, firm decisions, climate policy, carbon leakage |
| Date: | 2025–11–26 |
| URL: | https://d.repec.org/n?u=RePEc:ete:vivwps:777266 |
| By: | Carl Grekou; Thomas Grjebine; Florian Morvillier |
| Abstract: | Energy price shocks never occur in isolation: their impact is shaped by the broader macroeconomic context, in particular by governments' fiscal stance. This paper investigates how two key forces-energy price shocks and demand stimuli induced by fiscal policy-affect industrial performance in advanced economies, and shows that their effects depend critically on trade exposure. Using sector-level data for 30 countries over the period 1978-2022, we find that rising energy prices reduce manufacturing value added through both cost and demand channels, with more persistent effects in less open sectors. In contrast, demand-led fiscal expansions generate more complex dynamics: while boosting domestic sales, they simultaneously weaken external competitiveness. On average, a 1% increase in domestic demand leads to a 1.8% decline in manufacturing exports within three years. The overall effect on value added depends on the degree of trade openness - it is positive in the short term for sheltered sectors, but turns negative after two years in globally integrated ones. |
| Keywords: | Energy Prices;Demand Shocks;Industry;Competitiveness |
| JEL: | Q41 Q43 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:cii:cepidt:2025-19 |
| By: | Shi, Hongxu; Chen, Kelin; Zhang, Jun |
| Keywords: | Environmental Economics and Policy, Community/Rural/Urban Development, Resource/Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343702 |
| By: | Volker, Jamey |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewedacademic literature and has detailed discussions of study selection and methodological issues.VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizescan be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effectsizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt1mk638z3 |
| By: | Li, Xinrui; Yu, Chin-Hsien; Zhao, Jinsong; Shi, Yingyi |
| Keywords: | Production Economics, Resource/Energy Economics and Policy, Environmental Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343667 |
| By: | Chen, Kelin; Zhang, Jun; Zhang, Yuehua |
| Keywords: | Resource/Energy Economics and Policy, Community/Rural/Urban Development, Consumer/Household Economics |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343855 |
| By: | Felipe Beltrán; Mr. David O Coble Fernandez; Manuel Escobar; Felipe D Rojas |
| Abstract: | In this paper we study how aggregate demand surprises affect and propagate to the global economy, with particular attention to their impact on Emerging Market Economies (EMEs). To do so, we introduce a new high-frequency external instrument to identify global demand shocks: the sensitivity of oil futures prices around labor market announcements from the US and the Euro Area, two events that consistently trigger strong revisions in global growth expectations across financial markets. Using a proxy-SVAR framework, our results suggest that a global demand shock has positive effects on world industrial production, reduces oil inventories and global uncertainty, and improves financial conditions. In EMEs, upward revision in macroeconomic outlook leads to higher industrial production and inflation, real exchange rate appreciation, and lower EMBI spreads. When the sample is split between oil-importers and exporters, we observe results consistent with the role of external trade exposure in shaping transmission, heterogeneity in the magnitude and persistence of output, inflation, real exchange rates, and sovereign risk responses. These results are consistent with theoretical expectations and the related literature. Our findings offer a credible empirical strategy for isolating global demand shocks and have direct implications for empirical macroeconomic modeling of emerging market economies. |
| Keywords: | Proxy SVAR; oil futures prices; global demand shocks; Emerging Markets; high frequency identification; labor reports releases |
| Date: | 2025–12–05 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/253 |
| By: | Rafael Finck; Derck Koolen; Arnaud Mercier; Marija Miletic; Gonçalo Terça; Andreas Zucker |
| Abstract: | The European Union’s goal of achieving climate neutrality by 2050 requires substantial investments in low carbon electricity generation, particularly wind, solar and nuclear power. By 2040, the EU aims for over 90% of electricity to come from low-carbon sources. This study examines the cost-competitiveness of various low carbon technologies in different market environments and the influence of two key mechanims that support their investment and integration in the market: flexibility and long-term contacts. Overall, the cost-competitiveness on a market basis of low-carbon electricity generation is possible but it is sensitive to the cost of capital and the commodity cost of price-setting technologies. Flexibility, which is the ability of assets to adjust energy consumption or production, plays an essential role in the integration of electricity from renewable sources. While flexibility has in general a positive effect on the profitability of low carbon technologies and reduces price volatility, the analysis highlights the clear need to ensure coherence across policies supporting the integration of renewable energy and flexibility. Contracts for Difference (CfDs) are long-term contracts between an electricity generator and a public entity, providing a stable revenue for the generator and protection for consumers from volatile and extreme prices. The strike price of a CfD contract is a key parameter determining the profitability for producers and the cost-effectiveness of the instrument for the public counterparty. The analysis shows that CfD revenues and cash flows largely depend on the potential for the technology to capture (high) market prices, and the level of the agreed strike prices per technology, indicating the importance of competitive auctions to allocate these CfDs. |
| JEL: | Q40 Q42 Q47 Q48 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:euf:dispap:236 |
| By: | Ruike Lyu; Anna Li; Jianxiao Wang; Hongxi Luo; Yan Shen; Hongye Guo; Ershun Du; Chongqing Kang; Jesse Jenkins |
| Abstract: | In many countries, declining demand in energy-intensive industries (EIIs) such as cement, steel, and aluminum is leading to industrial overcapacity. Although overcapacity is traditionally seen as problematic, it could unlock EIIs' flexibility in electricity use. Using China's aluminum smelting sector as a case, we evaluate the system-level cost-benefit of retaining EII overcapacity for flexible electricity use in decarbonized systems. We find that overcapacity enables smelters to adopt a seasonal operation paradigm, ceasing production during winter load peaks driven by heating electrification and renewable seasonality. In a 2050-net-zero scenario, this paradigm reduces China's electricity-system investment and operating costs by 15-72 billion CNY per year (8-34% of the industry's product value), enough to offset the costs of maintaining overcapacity and product storage. Seasonal operation also cuts workforce fluctuations across aluminum smelting and thermal-power sectors by up to 62%, potentially mitigating socio-economic disruptions from industrial restructuring and the energy transition. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.22839 |
| By: | Bichler, Shimshon; Nitzan, Jonathan |
| Abstract: | 우리는 최근 발표한 글 「가자에 이르는 길(The Road to Gaza) 1편」에서 세 최고-신 교회(supreme-God churches)의 역사와, 전 세계 곳곳의 무력 분쟁과 전쟁에서 민병대가 맡는 역할이 어떻게 커져 왔는지를 검토했다. 본 논문은 이러한 민병대 전쟁들을 자본주의 권력 양식(capitalist mode of power)이라는 보다 넓은 조망 속에 위치시킨다. 특히 중동에 초점을 맞추어, 우리는 민병대 전쟁이 상대적 석유 가격과 차등적 석유 이윤(differential oil profits)에 미치는 영향을 보여주고, 전쟁 그 자체와 전쟁을 부추기는 자들, 그리고 그 전쟁에서 싸우는 주체들이 어떻게 모두 자본화된 권력(capitalized power)의 계산 속으로 할인(discounted)*되는지를 설명한다. |
| Keywords: | capitalization, church, corporation, differential accumulation, dominant capital, energy conflicts, Gaza, Middle East, militias, oil, OPEC, religion, war, Weapondollar-Petrodollar Coalition |
| JEL: | P00 P1 P12 P18 H56 N4 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:333211 |
| By: | Pike, Susie |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewedacademic literature and has detailed discussions of study selection and methodological issues. VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizes can be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effect sizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt062858ng |
| By: | Md. Bokhtiar Hasan (Islamic University, Bangladesh); Md. Tapan Mahmud (Bangladesh University of Professionals); Gazi Salah Uddin (Linköping University); Ali Ahmed (Linköping University); Donghyun Park (Asian Development Bank); John Beirne (Asian Development Bank) |
| Abstract: | Climate change, currently one of the most pressing challenges, requires increased public awareness and decisive action to support effective mitigation efforts. Comprehending digitalization’s potential role in shaping public understanding of climate-related issues has become a progressively important area of study. Against this backdrop, we undertake a pioneering attempt to examine how digitalization influences climate change awareness across diverse countries. To capture the multifaceted nature of digitalization, we construct a digitalization index, applying principal component analysis. Leveraging an annual panel dataset encompassing 65 countries over 2005–2020, our study applies several econometric techniques: panel-corrected standard errors, feasible generalized least squares, two-step system generalized method of moments, and panel quantile regression, to investigate this nexus. Our findings unveil a nonlinear U-shaped relationship between digitalization and climate awareness, suggesting that digitalization initially has a negligible or adverse impact but substantially boosts climate awareness after a digital maturity threshold is achieved. Furthermore, the share of renewable energy consumption also follows a U-shaped nonlinear pattern, while household consumption and corruption control contribute to boosting climate awareness. Conversely, the impact of human development, gross fixed capital, and trade openness becomes negligible when endogeneity is controlled. Our quantile-based analysis further validates these conclusions, although some factors vary across quantiles. These findings carry important policy implications, particularly emphasizing targeted fiscal policies to strengthen digital infrastructure and climate communication efforts, thereby facilitating tailored strategies for improved public climate awareness to meet climate sustainability. |
| Keywords: | digitalization;climate awareness;panel data analysis;nonlinear relationship |
| JEL: | C33 O11 Q01 Q54 |
| Date: | 2025–11–27 |
| URL: | https://d.repec.org/n?u=RePEc:ris:adbewp:021788 |
| By: | Samuel Darwisman |
| Abstract: | The theoretical landscape of transportation cost planning is shifting from deterministic linear models to dynamic, data-driven optimization. As supply chains face volatility, static 20th-century cost assumptions prove increasingly inadequate. Despite rapid technological advancements, a unified framework linking economic production theory with the operational realities of autonomous, sustainable logistics remains absent. Existing models fail to address non-linear stepwise costs and real-time stochastic variables introduced by market dynamics. This study reconstructs transportation cost planning theory by synthesizing Grand, Middle-Range, and Applied theories. It aims to integrate stepwise cost functions, AI-driven decision-making, and environmental externalities into a cohesive planning model. A systematic theoretical synthesis was conducted using 28 high-impact papers published primarily between 2018 and 2025, employing multi-layered analysis to reconstruct cost drivers. The study identifies three critical shifts: the transition from linear to stepwise fixed costs, the necessity of AI-driven dynamic pricing for revenue optimization, and the role of Autonomous Electric Vehicles (AEVs) in minimizing long-term marginal costs. A "Dynamic-Sustainable Cost Planning Theory" is proposed, arguing that cost efficiency now depends on algorithmic prediction and autonomous fleet utilization rather than simple distance minimization. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.10494 |
| By: | Volker, Jamey |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewedacademic literature and has detailed discussions of study selection and methodological issues. VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizes can be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effect sizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt0k26x2jw |
| By: | Guerin, Adrian; Najjar, Nouri; Schaufele, Brandon |
| Keywords: | Environmental Economics and Policy, Land Economics/Use, Resource/Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343660 |
| By: | Darryl Biggar; Mohammad Reza Hesamzadeh |
| Abstract: | Electric power systems are increasingly turning to energy storage systems to balance supply and demand. But how much storage is required? What is the optimal volume of storage in a power system and on what does it depend? In addition, what form of hedge contracts do storage facilities require? We answer these questions in the special case in which the uncertainty in the power system involves successive draws of an independent, identically-distributed random variable. We characterize the conditions for the optimal operation of, and investment in, storage and show how these conditions can be understood graphically using price-duration curves. We also characterize the optimal hedge contracts for storage units. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2511.21327 |
| By: | McGuinness, Seamus; Staffa, Elisa; Flynn, Eimear; Redmond, Paul |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:esr:wpaper:wp809 |
| By: | Morgan, Marc; Ranaldi, Marco |
| Abstract: | This paper introduces a novel application of the Kaya identity to assess the roles of technological change and consumption behaviour in shaping global greenhouse gas emissions. Drawing on numerical insights from counterfactual emission reduction scenarios, we quantify the adjustments in technology and consumption required to remain within the carbon budget by 2050 and explore their distributional implications. Building on this analysis, we develop a simple analytical model that formalizes the resulting carbon budget trilemma : under binding ecological constraints, rising consumption, technological progress, and widening inequality cannot sustainably coexist. We place these transformations in historical perspective by examining a set of precedents---from wars and epidemics to economic collapses and episodes of rapid technical upgrading---that provide comparative magnitudes for the scale of change implied by a binding carbon budget. Our conclusions unveil a race between technological innovation and consumption sobriety to reach planetary sustainability, in which global inequality acts as a boundary constraint. Given past technological progress, and current levels of global inequality, it is unlikely that sustained reductions in average consumption can be avoided if we are to respect ecological constraints. |
| Keywords: | Carbon budget, Technology, Consumption, Climate change mitigation, Kaya identity, Inequality and sustainability |
| JEL: | Q54 Q56 O44 D63 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:gnv:wpaper:unige:189430 |
| By: | Marco Gallegati (Polytechnic University of Marche); William Ginn (Labcorp, Coburg University of Applied Sciences); Jamel Saadaoui (University Paris 8); Solomos Solomou (University of Cambridge); Kun Tian (University of Kent) |
| Abstract: | This paper examines the impact of El Niño-Southern Oscillation (ENSO) shocks on U.S. oil futures and goods market prices from 1983:03 to 2024:10 via the Time-Varying Parameter Local Projections (TVP-LP) model. By allowing impulse responses to evolve over time, we capture dynamic shifts in the oil market’s sensitivity to El Niño and La Niña events across different time-horizons. Our findings reveal an asymmetric response, where El Niño shocks exhibit a negative effect on oil futures and goods market prices, while La Niña shocks–especially extreme ones–lead to persistent upward price pressures. The effect becomes more pronounced at horizons within 12 months, indicating delayed transmission mechanisms through supply chain disruptions and changes in global energy demand. Additionally, the response intensifies in extreme ENSO episodes, highlighting non-linearities in climate-driven oil price fluctuations. |
| Keywords: | Oil futures and goods market price, ENSO, local projections |
| JEL: | E F Q |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2025.20 |
| By: | Hardman, Scott PhD |
| Abstract: | More than 30 countries and several states and provinces (e.g., California, British Columbia) intend to reach 100% zero-emission vehicle (ZEV) sales by between 2025 and 2040. In 2024, 22% of global vehicle sales were plug-in electric vehicles (PEV), some large auto markets reached 10-30% in PEV sales, and some Nordic nations achieved sales of between 30% and 90%. Little research focuses specifically on challenges in reaching 100% ZEV sales. This policy brief is based on a literature review of the growing body of research on PEVs. The review focuses on understanding challenges in reaching 100% PEV sales and identifies current research questions on issues related to 100% PEV adoption. |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2024–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt0338k1mk |
| By: | Roth, Jakob; Schwab, Laura; Hintermann, Beat |
| Abstract: | The European travel sector is experiencing a transformation driven by increased climate awareness and policy measures aimed at reducing external costs such as emissions. This study examines how Swiss travelers respond to these developments, using a stated preference experiment including the modes train, night train, car, and airplane. Employing nested logit models, we find a significant willingness-to-pay for sustainable aviation fuel (SAF) of CHF 94 per ton of CO2e. Based on the estimated coefficients, we evaluate the impacts of four policy scenarios: an aviation tax (CHF 30), a night train subsidy (CHF 20), a SAF blending quota, and a market outlook for 2030. These scenarios are benchmarked against the first-best Pigovian tax on transport externalities. Assessing demand shifts, consumer surplus, and external costs, we find that subsidizing night train prices, the aviation tax, and the 2030 scenario increase welfare, whereas a 6% SAF mandate reduces it. |
| JEL: | D6 R4 Q5 |
| Date: | 2025–12–02 |
| URL: | https://d.repec.org/n?u=RePEc:bsl:wpaper:2025/08 |
| By: | Matthias Burgert; Matthieu Darracq Pariès; Luigi Durand; Mario Gonzalez; Romanos Priftis; Oke Röhe; Matthias Rottner; Edgar Silgado-Gómez; Nikolai Stähler; Janos Varga |
| Abstract: | This paper presents a novel model comparison to examine the challenges posed by changes in carbon-intensive energy prices for monetary policy. The employed environmental monetary models have a detailed multi-sector structure. The comparison assesses the effects of both a temporary and a permanent energy price increase with a particular focus on the euro area and the United States. Temporary and permanent price shocks are both inflationary. However, the inflationary impact of the permanent shock depends on the underlying model assumptions and monetary policy response. The analysis also establishes that these models share large commonalities in their quantitative and qualitative results, while also pointing out cross-country differences. |
| Keywords: | climate change, monetary policy, multi-sector models, model comparison, DSGE models |
| JEL: | C54 E52 H23 Q43 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1313 |
| By: | Ashley C. Craig; Thomas Lloyd; Dylan T. Moore |
| Abstract: | How should taxes on externality-generating activities be adjusted if they are regressive? In our model, the government raises revenue using distortionary income and commodity taxes. If more or less productive people have identical tastes for externality-generating consumption, the government optimally imposes a Pigouvian tax equal to the marginal damage from the externality. This is true regardless of whether the tax is regressive. But, if regressivity reflects different preferences of people with different incomes rather than solely income effects, the optimal tax differs from the Pigouvian benchmark. We derive sufficient statistics for optimal policy, and use them to study carbon taxation in the United States. Our empirical results suggest an optimal carbon tax that is remarkably close to the Pigouvian level, but with higher carbon taxes for very high-income households if this is feasible. When we allow for heterogeneity in preferences at each income level as well as across the income distribution, our optimal tax schedules are further attenuated toward the Pigouvian benchmark. |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.05602 |
| By: | Jan Nill; Francesca Crucitti; Magdalena Spooner; Janos Varga |
| Abstract: | The EU’s Fit for 55 policy package to reduce net greenhouse gas emissions by at least 55% by 2030 has direct impacts on households. The distributional analysis in this paper is in line with the existing literature in pointing to the risk of a moderately regressive distributional impact and to the resources provided by carbon pricing revenues to mitigate this impact. This paper then analyses the measures through which the Fit for 55 policy package addresses its regressive distributional impacts. The package fosters structural measures for negatively impacted population groups that address the root causes of the relative higher share of energy costs of consumption for poorer households, leaving the design of these measures to the Member States. An example is the Social Climate Fund. New stylised ECFIN E-QUEST macroeconomic modelling scenarios of different ETS revenue uses show that redistributive measures can imply a macroeconomic trade-off in terms of equity and efficiency. In case income related financial measures are used to complement structural measures, the modelling indicates that a targeted reduction of labour taxation instead of lump sum payments could mitigate this trade-off. Additional microeconomic modelling of household heating with income inequality and borrowing constraints highlights that only structural measures boost adoption of cleaner more efficient technologies. Overall, the analysis indicates that, from an economic and fiscal point of view and drawing also on energy crisis lessons, redistributive policy measures should be well targeted and preferably structural. |
| JEL: | D1 D3 D4 E1 E6 H2 Q4 Q5 |
| Date: | 2025–10 |
| URL: | https://d.repec.org/n?u=RePEc:euf:dispap:229 |
| By: | Maryam Fazal; Kyohei Yamada (IUJ Research Institute, International University of Japan) |
| Abstract: | This study examines the impact of non-price interventions on the energy conservation behavior of residential consumers in Pakistan. Building upon research on descriptive social norms, we hypothesized that individuals would reduce their electricity use when informed that many others were doing so. To test this hypothesis, we conducted a randomized experiment with 128 participants in Islamabad City. In the first phase, participants completed an online survey and were randomly assigned to receive one of two messages in the survey: one indicating that many residents were increasing electricity use, and the other suggesting that many were conserving. Participants were then asked to report their intention to save electricity. In the second phase, we collected actual electricity usage and billing data. Contrary to our expectation, the group informed that others were increasing their electricity reduced their own consumption by 14%, and paid 18% less in bills, compared to the other group. While inconsistent with previous experimental studies of descriptive social norms, our findings suggest that non-price interventions can promote energy conservation. |
| Keywords: | Electricity; Descriptive social norms; Randomized experiment; Pakistan |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:iuj:wpaper:ems_2025_06 |
| By: | Barbour, Elisa |
| Abstract: | This project reviews and summarizes empirical evidence for a selection of transportation and land use policies, infrastructure investments, demand management programs, and pricing policies for reducing vehicle miles traveled (VMT) and greenhouse gas (GHG) emissions. The project explicitly considers social equity (fairness that accounts for differences in opportunity) and justice (equity of social systems) for the strategies and their outcomes. Each brief identifies the best available evidence in the peer-reviewed academic literature and has detailed discussions of study selection and methodological issues. VMT and GHG emissions reduction is shown by effect size, defined as the amount of change in VMT (or other measures of travel behavior) per unit of the strategy, e.g., a unit increase in density. Effect sizes can be used to predict the outcome of a proposed policy or strategy. They can be in absolute terms (e.g., VMT reduced), but are more commonly in relative terms (e.g., percent VMT reduced). Relative effect sizes are often reported as the percent change in the outcome divided by the percent change in the strategy, also called an elasticity. |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–04–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt3nz8z47p |
| By: | Cassidy, Daniel; de Bruin, Kelly C |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:esr:wpaper:wp815 |
| By: | Jakob Schneebacher (Institute for Fiscal Studies); Fizza Jabbar (Competition and Markets Authority (CMA)); Joel Kariel (Competition and Markets Authority (CMA)) |
| Date: | 2025–12–05 |
| URL: | https://d.repec.org/n?u=RePEc:ifs:ifsewp:25/57 |
| By: | Brennan, Dominic |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:globco:qt8zw6t6m7 |
| By: | Aggarwal, Raavi (Indian Statistical Institute, New Delhi, India and Technical University of Berlin, Berlin, Germany, and Potsdam Institute for Climate Impact Research, Potsdam, Germany); Missbach, Leonard (Potsdam Institute for Climate Impact Research, Potsdam, Germany); Somanathan, E. (Indian Statistical Institute, New Delhi, India); Steckel, Jan Christoph (Potsdam Institute for Climate Impact Research, Potsdam, Germany and Technical University of Munich, Munich, Germany); Sterner, Thomas (University of Gothenburg, Gothenburg, Sweden) |
| Abstract: | Climate change mitigation is often assumed to be cheaper in developing countries than in developed countries. Yet, existing analyses frequently ignore the cost-effectiveness of price-based climate policies in the presence of other externalities such as indoor air pollution. Using detailed household data for six representatively selected countries, we examine the demand responses of biomass consumption to higher prices of electricity, liquefied petroleum gas (LPG) and kerosene. We show that for these fuels, carbon pricing can generate substantial domestic health costs resulting from increasing indoor air pollution that exceed the global benefits of climate mitigation in four out of six countries. Our results challenge the notion that climate change mitigation is cheaper in low-income countries relative to high-income countries. The design of climate policies needs to take contextual factors into account, in particular with respect to the fuels used by the poorest. |
| Keywords: | Carbon pricing; Biomass use; Indoor air pollution; Clean cooking |
| JEL: | I10 |
| Date: | 2025–11–06 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:gunefd:2025_009 |
| By: | Yao Dong; Martina Hengge; Mr. Fabian Valencia; Mr. Richard Varghese |
| Abstract: | We study how carbon risk affects the pricing of U.S. corporate loans and how firms’ and lenders’ commitments influence both loan terms and business decisions. Combining syndicated loan data with firm-level carbon emissions, we document a carbon risk premium: financial institutions charge higher loan risk spreads to borrowers with a higher carbon intensity. This premium varies with the environmental commitments of borrowers and lenders. Borrowers signaling commitments—emission targets, emission disclosures, or green loans—receive discounts that decline with increasing carbon intensity, while committed lenders charge higher interest rates to carbon-intensive borrowers. Beyond affecting the carbon premium, commitments influence real economic outcomes by increasing corporate investment and R&D expenditures, and by reducing precautionary liquidity holdings. We also show that the carbon premium in U.S. loan markets intensifies during periods of monetary tightening in line with the risk-taking channel of monetary policy. Notably, the carbon premium is time varying and has declined in recent years. |
| Keywords: | carbon premium; interest rate; lending; corporate investment; monetary policy |
| Date: | 2025–12–05 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2025/250 |
| By: | Majeed, Fahd; Khanna, Madhu; Miao, Ruiqing |
| Keywords: | Resource/Energy Economics and Policy, Environmental Economics and Policy, Agricultural and Food Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:344043 |
| By: | Ladha, Rij; Khan, Sarah; Das Banerjee, Anannya; Ramji, Aditya |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt6q05q3mb |
| By: | Mattia Guerini (Università degli Studi di Brescia and Fondazione Eni Enrico Mattei); Giovanni Marin (Università degli Studi di Urbino Carlo Bo, Fondazione Eni Enrico Mattei and SEEDS, Sustainability Environmental Economics and Dynamics Studies); Francesco Vona (Università degli Studi di Milano, Fondazione Eni Enrico Mattei and OFCE Sciences-Po) |
| Abstract: | We study how monetary policy shapes firm level carbon emissions. Our identification strategy exploits the European Central Bank’s July 2012 move to the zero lower bound as a plausibly exogenous easing of credit supply, combined with rich administrative and survey data on French manufacturing firms from 2000–2019. Using a difference-in-differences design with debt-to-asset ratios as exposure, we find that financially constrained firms cut emissions by about 9.4% more than unconstrained ones. This effect primarily stems from improvements in energy efficiency, lower carbon intensity of energy, and general productivity improvements associated with capital deepening that outweighed modest scale effects. Small and medium firms drive these results, while large and EU ETS regulated firms show no significant response. On average, emissions fell by 3.3% per year, summing up to 5.3 million tonnes of CO2 saved. Despite the smaller marginal effects, total carbon savings due to the monetary easing are comparable to the savings from the EU ETS, highlighting the untargeted nature of the policy. |
| Keywords: | Financial constraints, credit supply, firm level carbon emissions, climate policies |
| JEL: | Q52 Q48 D22 |
| Date: | 2025–12 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.31 |
| By: | Ebadi, Ebad; Rentschler, Jun |
| Abstract: | Environmental Engel curves characterize the relationship between the embodied environmental impact of household consumption choices and their respective income levels. Using detailed microdata from 109 countries across all income levels, this paper studies household expenditure shares on 11 fuel types that differ in their air pollution intensity. The findings show that wealthier households tend to shift away from dirty fuels and toward cleaner ones, although this transition is not guaranteed. In low-income countries, limited infrastructure and poor access to clean fuels slow this process, demonstrating that income alone cannot drive energy transitions. By documenting systematic variation in environmental Engel curves across income groups and national contexts, the paper emphasizes the joint role of income growth and infrastructure development. The analysis also reveals a dual burden of pollution in which richer households are the primary contributors to outdoor air pollution, while poorer households remain reliant on polluting fuels that increase their exposure to indoor air pollution. |
| Date: | 2025–12–02 |
| URL: | https://d.repec.org/n?u=RePEc:wbk:wbrwps:11266 |
| By: | Ramji, Aditya; Jamhar, Jameel |
| Keywords: | Engineering, Social and Behavioral Sciences |
| Date: | 2025–12–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt9j23v00w |
| By: | Alvaro-Taus, Marta; Curtis, John |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:esr:wpaper:wp810 |
| By: | Paulo Roberto de Melo Barros Junior; Monica Alexandra Vilar Ribeiro De Meireles; Jose Luis Lima de Jesus Silva |
| Abstract: | Our work investigates the economic efficiency of the prevailing "ladder-step" investment strategy in oil and gas exploration, which advocates for the incremental acquisition of geological information throughout the project lifecycle. By employing a multi-agent Deep Reinforcement Learning (DRL) framework, we model an alternative strategy that prioritizes the early acquisition of high-quality information assets. We simulate the entire upstream value chain-comprising competitive bidding, exploration, and development phases-to evaluate the economic impact of this approach relative to traditional methods. Our results demonstrate that front-loading information investment significantly reduces the costs associated with redundant data acquisition and enhances the precision of reserve valuation. Specifically, we find that the alternative strategy outperforms traditional methods in highly competitive environments by mitigating the "winner's curse" through more accurate bidding. Furthermore, the economic benefits are most pronounced during the development phase, where superior data quality minimizes capital misallocation. These findings suggest that optimal investment timing is structurally dependent on market competition rather than solely on price volatility, offering a new paradigm for capital allocation in extractive industries. |
| Date: | 2025–11 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2512.00243 |
| By: | Zhang, Haotian (Lingnan College, Sun Yat-Sen University, Guangzhou 510275, China); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Nepal, Rabindra (School of Business, University of Wollongong, NSW 2522, Australia); Dong, Kangyin (School of International Trade and Economics, University of International Business and Economics, Beijing 100029, China) |
| Abstract: | Gender equality and carbon inequality are interrelated and pervasive. However, there is limited evidence on the presence and nature of the causality relationships between gender equality and carbon inequality in the literature. This paper examines how gender equality affects carbon inequality and the underlying mechanisms using a theoretical model analysis with a novel perspective and panel data from 153 countries for the period 2006–2019. We find that gender equality mitigates carbon inequality by alleviating wealth and income disparities with democratization and anti-corruption efforts amplifying its impact. The reduction in carbon inequality and economic inequality stems mainly from the decrease in carbon emissions and the economic share of the wealthy. The benefits of gender equality for the poor are relatively small, while democratization and anti-corruption and efforts strengthen its positive effects on disadvantaged groups. |
| Keywords: | Gender equality; Carbon inequality; Democratization; Corruption; Wealth inequality; Income inequality |
| JEL: | C23 F35 O13 P28 Q55 |
| Date: | 2025–12–04 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:cbsnow:2025_011 |
| By: | Khondaker Golam Moazzem; Atikuzzaman Shazeed; Mehadi Hasan Shamim |
| Abstract: | The interim government has taken a major initiative to revise key policies and plans related to the power and energy sector of the country. In this connection, the Power Division has published the online version of a draft policy titled ‘Renewable Energy Policy (draft) 2025’ for necessary comments and feedback. |
| Keywords: | Universal Health Coverage (UHC), primary healthcare services, Bangladesh healthcare, maternal and child mortality, healthcare disparities, quality healthcare |
| Date: | 2025–04 |
| URL: | https://d.repec.org/n?u=RePEc:pdb:pbrief:72 |
| By: | Yu, Chengzheng; Zhang, Zhi Min; Wei, Liangchun |
| Keywords: | Environmental Economics and Policy, Health Economics and Policy, Resource/Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343628 |
| By: | Hrozencik, Robert A.; Rouhi Rad, Mani; Uz, Dilek; Li, Liqing |
| Keywords: | Community/Rural/Urban Development, Resource/Energy Economics and Policy |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ags:aaea24:343894 |
| By: | Kumar, Praveen (Ashoka University); Gupta, Eshita (KPMG, Gurugram, India); Karumba, Mary (Dept. of Economic Planning and Statistics, Govt of Kenya); Beyene, Abebe Damte (Environment and Climate Research Center, Ethiopia); Chukwuone, Nnaemeka (University of Nigeria - Nsukka); Jeuland, Marc (Duke University); Somanathan, E. (Indian Statistical Institute Delhi) |
| Abstract: | Cooking, a ubiquitous household activity, presents a significant opportunity for energy transition. This study focuses on the transition to the understudied and under-adopted—despite high electricity access— practice of electric cooking as a clean solution by examining both demand and supply factors. Using nationally representative data from India, Nepal, Kenya, Ethiopia, and Nigeria, we highlight the role of electricity reliability as a central determinant of electric cooking adoption. Reliability consistently shows a strong positive association with adoption in India, Nepal, Ethiopia, and Nigeria, underscoring that access alone is insufficient without dependable supply. Alongside reliability, household expenditure, urban location, and education also emerge as important correlates. Qualitative evidence further reveals that while electric cooking is valued for its speed and convenience, it is predominantly used in a stacked manner and faces several barriers—poor and unreliable electricity quality, inadequate household electrical wiring and infrastructure, high upfront appliance costs, limited appliance durability, and lack of local repair services— that inhibit greater use of this fuel. These findings can be valuable for further research, data collection, and government policies to effectively scale electric cooking |
| Keywords: | Electricity Reliability; Household air pollution; Energy Transition; Electric Cooking; Clean Cooking |
| JEL: | O12 O13 O18 Q40 Q48 Q55 |
| Date: | 2025–11–07 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:gunefd:2025_010 |