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on Regulation |
| By: | Patrick Bolton; Marcin Kacperczyk |
| Abstract: | This paper explores whether carbon emissions affect the cross-section of U.S. stock returns. We find that stocks of firms with higher total CO2 emissions (and changes in emissions) earn higher returns, after controlling for size, book-to-market, momentum, and other factors that predict returns. We cannot explain this carbon premium through differences in unexpected profitability or other known risk factors. We also find that institutional investors implement exclusionary screening based on direct emission intensity in a few salient industries. Overall, our results are consistent with an interpretation that investors are already demanding compensation for their exposure to carbon emission risk. |
| JEL: | G12 H23 Q54 |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:26968&r=all |
| By: | Dengiz, Thomas; Jochem, Patrick; Fichtner, Wolf |
| Abstract: | A paradigm shift has to be realized in future energy systems with high shares of renewable energy sources. The electrical demand has to react to the fluctuating electricity generation of renewable energy sources. To this end, flexible electrical loads like electric heating devices coupled with thermal storage or electric vehicles are necessary in combination with optimization approaches. In this paper, we develop a novel privacy-preserving approach for decentralized optimization to exploit load flexibility. This approach, which is based on a set of schedules, is referred to as SEPACO-IDA. The results show that our developed algorithm outperforms the other approaches for scheduling based decentralized optimization found in the literature. Furthermore, this paper clearly illustrates the suboptimal results for uncoordinated decentralized optimization and thus the strong need for coordination approaches. Another contribution of this paper is the development and evaluation of two methods for distributing a central wind power profile to the local optimization problem of distributed agents (Equal Distribution and Score-Rank-Proportional Distribution). These wind profile assignment methods are combined with different decentralized optimization approaches. The results reveal the dependency of the best wind profile assignment method on the used decentralized optimization approach. |
| Keywords: | Demand response,Decentralized optimization,Smart grid,Wind and PV integration,Electric heating,Electric vehicles |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitiip:42&r=all |
| By: | Raul Bajo Buenestado (University of Navarra) |
| Abstract: | A number of countries in Sub-Saharan Africa have recently deployed billions of dollars to improve their electricity infrastructure. However, aggregate data shows that the relative number of households with an electricity connection at home has barely increased. In this paper we study the role of blackouts to partially explain why there have been relatively few additional households with electricity access despite the increase in electrification expenditure. Using geo-localized survey data from Kenya, we find that households that live in neighborhoods in which power outages are relatively more frequent are (at least) about 6%-9% less likely to have electricity at home. We also find that households that have electricity access but which experience frequent power outages are also less likely to purchase electrical appliances. |
| Keywords: | Energy poverty, Electricity access, Electrification rates, Sub-Saharan Africa |
| JEL: | L94 O13 Q41 Q48 |
| Date: | 2020–04–24 |
| URL: | http://d.repec.org/n?u=RePEc:una:unccee:wp0120&r=all |
| By: | Kerstin H\"otte; Anton Pichler; Fran\c{c}ois Lafond |
| Abstract: | Successfully combating climate change will require substantial technological improvements in Low-Carbon Energy Technologies (LCETs). An efficient allocation of R&D budgets to accelerate technological advancement necessitates a better understanding of how LCETs rely on scientific knowledge. In this paper, we sketch for the first time the evolution of knowledge bases for key LCETs and show how technological interdependencies change in time. We use data covering almost all US patents as well as scientific articles published in the past two centuries to quantify the history of LCETs and their dependence on science. We show how the drivers of low-carbon innovations shifted from Hydro and Wind energy to Nuclear fission, and more recently to Solar PV and back to Wind. Our analysis demonstrates that 1) LCETs rely increasingly on science, 2) Solar PV and Nuclear fusion depend heavily on science, while Hydro energy does not, 3) renewable and nuclear energy technologies rely on a strikingly different kind of science, and 4) there is a remarkable convergence of scientific knowledge bases of renewables over recent decades. These findings suggest a need for technology-specific research policies, although targeted research in renewables is likely to cross-fertilize a wider range of LCETs. |
| Date: | 2020–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2004.09959&r=all |
| By: | Wei Wei; Asger Lunde |
| Abstract: | We propose a multi-factor model and an estimation method based on particle MCMC to identify risk factors in electricity prices. Our model identifies long-run prices, shortrun deviations, and spikes as three main risk factors in electricity spot prices. Under our model, different risk factors have distinct impacts on futures prices and can carry different risk premia. We generalize the Fama-French regressions to analyze properties of true risk premia. We show that model specification plays an important role in detecting time varying risk premia. Using spot and futures prices in the Germany/Austria market, we demonstrate that our proposed model surpasses alternative models that have less risk factors in forecasting spot prices and in detecting time varying risk premia. |
| Keywords: | Risk factors, risk premia, futures, particle filter, MCMC. |
| JEL: | C51 G13 Q4 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:msh:ebswps:2020-10&r=all |
| By: | Pauline Affeldt; Tomaso Duso; Florian Szücs |
| Abstract: | We study the evolution of EC merger decisions over the first 25 years of common European merger policy. Using a novel dataset at the level of the relevant antitrust markets and containing all merger cases scrutinized by the Commission over the 1990-2014 period, we evaluate how consistently arguments related to structural market parameters – dominance, concentration, barriers to entry, and foreclosure – were applied over time and across different dimensions such as the geographic market definition and the complexity of the merger. Simple, linear probability models as usually applied in the literature overestimate on average the effects of the structural indicators. Using non-parametric machine learning techniques, we find that dominance is positively correlated with competitive concerns, especially in concentrated markets and in complex mergers. Yet, its importance has decreased over time and significantly following the 2004 merger policy reform. The Commission’s competitive concerns are also correlated with concentration and the more so, the higher the entry barriers and the risks of foreclosure. These patterns are not changing over time. The role of the structural indicators in explaining competitive concerns does not change depending on the geographic market definition. |
| Keywords: | merger policy, EU Commission, dominance, concentration, entry barriers, foreclosure, causal forests |
| JEL: | K21 L40 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_8213&r=all |
| By: | Ekundayo P. Mesagan (Pan Atlantic University, Lagos, Nigeria.); Chidi N. Olunkwa (University of Lagos, Nigeria) |
| Abstract: | This study investigates the effects of energy consumption and capital investment on environmental degradation in selected African countries between 1981 and 2017 using panel cointegration approaches. The Fully Modified and the Dynamic Ordinary Least Squares results affirm that energy consumption positively affects carbon emissions in Algeria, Nigeria, Morocco, and in the panel. At the same time, both also confirm that capital investment positively and significantly impacts carbon emissions in the region. Again, results show that capital investment augments energy use to reduce carbon emissions in Africa significantly. This implies that capital investment can provide needed impetus to reduce environmental degradation in the continent. The study, therefore, recommends that African countries should focus on energy conservation policies to reduce the adverse effect of energy use on carbon emissions. |
| Keywords: | Electricity Consumption, Capital investment, Environmental Degradation, Africa |
| JEL: | Q40 Q42 Q43 Q54 Q57 |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:20/022&r=all |
| By: | Wittmann, Florian; Hufnagl, Miriam; Lindner, Ralf; Roth, Florian; Edler, Jakob |
| Abstract: | The goal to address broader societal problems by mission-oriented research and inno-vation policy has brought new demands for the governance and implementation to the forefront and led to a great diversity of missions. By developing a typology for the clas-sification of different types of missions, this working paper can serve as a first step for studying the impact of the missions of the German High-Tech Strategy 2025 (HTS). Combining existing literature on mission-oriented innovation policy with insights from governance structures, we identify four types of missions - two subtypes of transformer and accelerator missions each - and demonstrate that this typology can be successfully applied to the 12 missions of the German HTS 2025. Thereby, we contribute to a more fine-grained understanding of the different demands and challenges inherent to different missions and thus provide the opportunity for a systematic comparison and a reflection on the varying requirements for assessing the impact of mission-oriented policies. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisidp:64&r=all |
| By: | Hanna Bartoszewicz-Burczy; Rupert Baumgartner (University of Graz); Tina Fawcett; Morgane Fritz (La Rochelle Business School); Gavin Killip; Tamara Valladolid; Christian Violi |
| Abstract: | Improvement of energy efficiency may, in many ways, be beneficial for the economy and society. Energy efficiency programs, however, are often assessed based on energy savings only, without considering the socioeconomic benefits. Therefore, the entire benefit from energy efficiency in national economies and in the global dimension is significantly underappreciated. The basic aim of this paper is to demonstrate the multiple benefits from improving energy efficiency and to analyse them based on selected case studies. |
| Date: | 2019–03–15 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-02547232&r=all |
| By: | Nathaly Rivera (University of Alaska Anchorage); Scott Loveridge (Michigan State University) |
| Abstract: | We derive causal property value impacts of the coal-to-gas fuel switching conversion implemented by several power plants in the United States. We use an extensive dataset of property transactions around the country and adopt several spatial difference-in-difference approaches that use records of residential property transactions of homes with wind exposure and proximity to the switching plants before and after the switch. A triple-differences control function estimator using coal-fired plants that did not innovate strengthens these estimations. Our results indicate that the shutdown of coal-fired generators increases property values of downwind homes by 15% in the immediate vicinity of fuel-switching plants ( |
| Keywords: | Fossil Fuels, Fuel Switching, Environmental Quality, Housing Market, Environmental Valuation, Hedonic Models |
| JEL: | C7 C9 D7 Q2 |
| Date: | 2020–03 |
| URL: | http://d.repec.org/n?u=RePEc:ala:wpaper:2020-01&r=all |