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on Regulation |
| By: | Guy Meunier; Jean-Pierre Ponssard (X - École polytechnique) |
| Abstract: | Summary: Hydrogen is a possible alternative to the internal combustion engine, alongside battery-powered vehicles, in the context of reducing greenhouse gas emissions associated with transport activities. The costs associated with hydrogen vehicles are currently high, even when considering the greenhouse gas emissions and other pollutants avoided by their use. Efforts to reduce these costs, which will determine the social and environmental desirability of hydrogen vehicles, face two challenges : the high cost of refueling, linked to the crucial problem of coordination between development of the vehicle fleet and refueling infrastructure; and high purchase prices, which may decrease when sufficient quantities generate experience effects. This policy brief argues that each of these two handicaps calls for a specific policy design : at a local level for coordination between actors, and at a European level to generate sufficient volumes. The example of hydrogen-powered urban buses offers a telling illustration of these issues.. Key points: The growing importance of the hydrogen sector has been encouraged by various initiatives in France. These initiatives are based on the idea of a regional ecosystem : around a city, a network of local communities, or even a department or a region. The example of hydrogen buses shows that the abatement costs induced by this technology are still too high. The problem lies both in the price of the vehicles and the supply of fuel. Reducing the costs associated with the supply of fuel requires the resolution of coordination problems linked to network effects, which calls for a response at the local level. Achieving vehicle purchase prices low enough to be competitive requires a European approach, which alone makes it possible to reach significant volumes. |
| Date: | 2020–07 |
| URL: | http://d.repec.org/n?u=RePEc:hal:ipppap:halshs-03019425&r=all |
| By: | World Bank |
| Keywords: | Public Sector Development - Regulatory Regimes Energy - Electric Power Energy - Energy Policies & Economics Energy - Energy Sector Regulation Energy - Renewable Energy Energy - Solar Energy |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:33255&r=all |
| By: | Aleksandar Zaklan |
| Abstract: | This paper tests the independence property under the Coase Theorem in a large multinational cap-and-trade scheme for greenhouse gas emissions, the EU Emissions Trading System (EU ETS). I analyze whether emissions of power producers regulated under the EU ETS are independent from allowance allocations, leveraging a change in allocation policy for a difference-in-differences strategy. The evidence suggests that the independence property holds overall and for larger emitters. It fails for small emitters, indicating that transaction costs distort their emission decisions. However, due to their small share of aggregate emissions the independence property remains intact at the sector level. |
| Keywords: | Coase theorem, independence property, cap-and-trade, EU ETS, greenhouse gas emissions |
| JEL: | Q58 Q54 Q52 L94 |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1925&r=all |
| By: | Rahul Srinivasan; Debabrata Chattopadhyay |
| Keywords: | Energy - Electric Power Energy - Energy Demand Energy - Energy Policies & Economics |
| Date: | 2020–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:33168&r=all |
| By: | Maya Papineau (Department of Economics, Carleton University); Kareman Yassin (Department of Economics, University of Ottawa); Guy Newsham; Sarah Brice |
| Abstract: | We implement a conditional demand analysis (CDA) using a large dataset of electricity consumers in a Canadian province with a high market share of electric heating technologies. In doing so we also provide a unifying review of the breadth of interdisciplinary applications of CDA, beginning from the earliest studies up to the present, and test for evidence of unobservable variable bias from random effects panel data estimators. We find that local (i.e. minisplit) heat pumps and thermostat setbacks show the largest electricity savings. Central heat pumps generally do not save heating electricity compared to electric baseboards, and exhibit higher cooling season consumption compared to local heat pumps. We also observe a consistent decline in electricity consumption for newer homes, with the largest effects in the post-2010 period. Our results can inform research to identify promising technologies that support a shift towards large-scale electrification and decarbonization of energy end-uses, on the basis of robust statistical analysis utilizing realized household consumption data. |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:car:carecp:20-21&r=all |
| By: | Nicoletta Batini; Ian Parry; Philippe Wingender |
| Abstract: | Denmark has a highly ambitious goal of reducing greenhouse gas emissions 70 percent below 1990 levels by 2030. While there is general agreement that carbon pricing should be the centerpiece of Denmark’s mitigation strategy, pricing needs to be effective, address equity and leakage concerns, and be reinforced by additional measures at the sectoral level. The strategy Denmark develops can be a good prototype for others to follow. This paper discusses mechanisms to scale up domestic carbon pricing, compensate households, and possibly combine pricing with a border carbon adjustment. It also recommends the use of revenue-neutral feebate schemes to strengthen mitigation incentives, particularly for transportation and agriculture, fisheries and forestry, though these schemes could also be applied more widely. |
| Keywords: | Carbon tax;Greenhouse gas emissions;Consumption;Climate change;Agricultural commodities;Denmark climate mitigation,carbon pricing,feebate,revenue recycling,border carbon adjustment,transportation,agriculture.,WP,emission rate,EU ETS,emissions price,sliding scale,greenhouse gas,proxy emissions fee |
| Date: | 2020–11–12 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:2020/235&r=all |
| By: | Wilson, Kyle; Xiao, Mo; Orazem, Peter F. |
| Abstract: | In a rapidly growing industry, potential entrants strategically choose which local markets to enter. Facing the threat of additional entrants, a potential entrant may lower its expectation of future profits and delay entry into a local market, or it may accelerate entry due to preemptive motives. Using the evolution of local market structures of broadband Internet service providers from 1999 to 2007, we find that the former effect dominates the latter after allowing for spatial correlation across markets and accounting for endogenenous market structure. On average, it takes two years longer for threatened markets to receive their first broadband entrant. Moreover, this entry delay has long-run negative implications for the divergence of the U.S. broadband infrastructure: one year of entry delay translates into an 11% decrease in average present-day download speeds. |
| Date: | 2020–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genstf:202010270700001120&r=all |
| By: | Rania Hentati-Kaffel (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Alessandro Ravina (CES - Centre d'économie de la Sorbonne - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper assesses the impact of low-carbon policy on stock returns by means of an environmental extension of Fama and French's (2015) five factor model. This paper makes four major contributions. Firstly, for the first time a factor, GMC (green minus carbon), meant to provide the premium which results from not paying a carbon price is constructed. The GMC factor is obtained by means of a sample of 182 firms from 19 European countries operating in 35 sectors: from January 2008 to December 2018 the value-weight returns of 91 firms regulated by the 2003/87/CE directive are subtracted from the value-weight returns of 91 firms exempted by the 2003/87/CE directive upon which the EU-ETS is based. Secondly, we provide evidence that the addition of the GMC factor improves the performance of the 5 factor model in Europe in the 2008-2018 time span. Thirdly, results show that there is a high green premium rather than a carbon premium as it was asserted by parts of the literature, and that this green premium is highly statistically significant. Fourthly, after performing a carbon stress test, we show the effects of EU-ETS average price shocks on both carbon and green firms for each market cap tranche. |
| Keywords: | Low-carbon transition risks,EU-ETS,CO2 emissions,asset pricing model,green premium |
| Date: | 2020–02–10 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:hal-03045804&r=all |
| By: | Cezar Santos; Tiago Cavalcanti; Zeina Hasna |
| Abstract: | We evaluate the aggregate and distributional effects of climate change mitigation policies using a multi-sector equilibrium model with intersectoral inputoutput linkages and worker heterogeneity calibrated to different countries. The introduction of carbon taxes leads to changes in relative prices and inputs reallocation, including labor. For the United States, reaching its Paris Agreement pledge would imply at most a 0.6% drop in output. This impact is distributed asymmetrically across sectors and individuals.Workers with a comparative advantage in dirty energy sectors who do not reallocate bear relatively more of the cost but constitute a small fraction of the labor force. |
| JEL: | E13 H23 J24 |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:ptu:wpaper:w202017&r=all |
| By: | World Bank |
| Keywords: | Energy - Electric Power Energy - Energy Policies & Economics Energy - Energy Trade |
| Date: | 2020 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wboper:34158&r=all |
| By: | G Raghuram, Rachna Gangwar and Charu Rastogi (Adani Institute of Infrastructure Management, Ahmedabad); Rachna Gangwar (Indian Institute of Management, Bangalore); G Raghuram |
| Abstract: | In this paper, we critique the initiative for public private partnership in passenger train operations, started by the Ministry of Railways in July 2020. First, we examine each of the clusters in terms of parameters having implications on market and design coherence. The parameters include category of service (based on running time), train kms per week, train hours per week and average speed. Second, we present the salient features of bid parameters and conditions as per the documents released by the Ministry of Railways. Third, we assess the public private partnership initiative and bid conditions on parameters such as drivers for the initiative, market coherence, design coherence, bidding process and timeline, bid criteria, concession period, issues of competition, financial capacity, entry costs, train set features, fare and ticketing, terminals, schedule and stoppages, haulage and other charges and operations & maintenance. We also draw lessons from our understanding of the public private partnership experience of container train operators, where applicable. Finally, we suggest a way forward for the stakeholders in this public private partnership initiative. |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:alt:wpaper:02-01&r=all |
| By: | Xiao-Shan Yap; Bernhard Truffer; Deyu Li; Gaston Heimeriks; |
| Abstract: | Recent research in catching-up and leapfrogging literature has been at pains to explain how latecomer countries, besides a few exceptional cases, could achieve leadership positions in global industries. We propose to extend the potential development strategies by drawing on recent insights at the interface between economic geography and socio-technical transition studies. Whereas the extant catch-up literature has strongly focused on conditions of knowledge development, we claim that processes of “valuation†and in particular the formation of new markets needs to be considered more explicitly. Drawing on recent developments in the Chinese solar photovoltaics industry, we show how companies in the country moved from a knowledge based catch-up strategy, to increasingly leading the innovation frontier of the PV sector. However the most promising leapfrogging opportunity only seems to take shape in the most recent phase, where market deployment and entrepreneurial experimentation increasingly target a transition of the electricity sector towards accommodating a high share of renewables. In a nutshell, the experience of the Chinese solar photovoltaics industry progressed from manufacturing PV cells, to climbing the value chain ladder, and finally towards the construction of entirely new socio-technical systems. We argue that this approach is increasingly necessary as sustainability requirements become more urgent and that other countries may learn in order to move out of the middle- income trap. |
| Keywords: | Catch-up; Leapfrog; Middle-income trap; Socio-technical systems; Knowledge; Unrelated diversification |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:egu:wpaper:2059&r=all |
| By: | Chakraborti, Lopamudra |
| Abstract: | In this study, we document regulator reputation effects in a developing country. We construct a panel on 3,432 major toxic polluters from 2004 to 2015 using detailed plant-specific data on pollution, inspections, and fines. Results show that: regulators target polluters based on past violations; fines induce more accurate self-reporting and result in higher self-reported pollution at the sanctioned facility; increased fines on other polluters lead to long-term improvements in environmental performance and reductions in toxic pollution. An increase in amount fined by 1% on all others in the same municipality leads to an individual plant reducing its annual pollution discharges by 0.1% for all seven toxics examined. These findings are significant as toxic pollutants are harmful even at small concentrations. We highlight synergies in costs of monitoring and enforcement of mandatory reporting regulation. |
| Keywords: | Environmental Deterrence; Inspections and Fines; developing countries; Toxics Pollution Registry; Regulator Regulation Effects; Voluntary Environmental Regulation |
| JEL: | K32 Q52 Q53 Q58 |
| Date: | 2020–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:104580&r=all |
| By: | Ralf Martin; Petra Sarapatkova; Dennis Verhoeven |
| Abstract: | UK greenhouse gas (GHG) emissions are declining and have been declining for some time. As of 2018, the UK emitted 449 million tonnes of CO2 equivalent (tCO2e). That corresponds to a reduction of 43% relative to 1990 levels, which should make it easy to meet the 2020 target of a reduction of 37%. Moreover, the UK has a framework of long-run targets developed by the Committee on Climate Change, an independent body of experts advising government. At present, this requires a reduction of 51% by 2025 and 57% by 2030. In addition, shortly before resigning as prime minister, Theresa May introduced a so-called 'net zero' target, requiring a reduction of emissions to (net) zero by 2050. |
| Keywords: | greenhouse gas emissions, committee on climate change, offshore wind power |
| Date: | 2019–11 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepeap:054&r=all |