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on Resource Economics |
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Issue of 2009‒06‒17
five papers chosen by |
| By: | Marius-Cristian Frunza (Centre d'Economie de la Sorbonne et Sagacarbon); Dominique Guegan (Centre d'Economie de la Sorbonne - Paris School of Economics) |
| Abstract: | The aim of this work is to bring an econometric approach upon the CO2 market. We identify the specificities of this market, and regarding the carbon as a commodity. We investigate the econometric particularities of CO2 prices behavior and their result of the calibration. We apprehend and explain the reasons of the non-Gaussian behavior of this market focusing mainly upon jump diffusion and generalized hyperbolic distributions. We test these results for the risk modeling of a structured product specific to the carbon market, the swap between two carbon instruments : The European Union Allowances and the Certiified Emission Reductions. We estimate the counterparty risk for this kind of transaction and evaluate the impact of different models upon the risk measure and the allocated capital. |
| Keywords: | Carbon, Normal Inverse Gaussian, CER, EUA, Swap. |
| Date: | 2009–05 |
| URL: | http://d.repec.org/n?u=RePEc:mse:cesdoc:09038&r=res |
| By: | Jaccard, Mark (School of Resource and Environmental Management at Simon Fraser University, Vancouver) |
| Abstract: | Many people believe we must quickly wean ourselves from fossil fuels to save the planet from environmental catastrophe, wars and economic collapse. However, we have the technological capability to use fossil fuels without emitting climate-threatening greenhouse gases or other pollutants. The natural transition from conventional oil and gas to unconventional oil, unconventional gas and coal for producing electricity, hydrogen and cleaner-burning fuels will decrease energy dependence on politically unstable regions. In addition, our vast fossil fuel resources, perhaps especially coal, are likely to remain among the cheapest sources of clean energy for the next century and perhaps longer, which is critical for the economic and social development of the world's poorer countries. By buying time for increasing energy efficiency, developing renewable energy technologies and making nuclear power more attractive, fossil fuels will play a key role in humanity's quest for a sustainable energy system. |
| Keywords: | Sustainable energy systems; clean fossil fuels |
| JEL: | Q40 Q42 Q55 Q56 |
| Date: | 2007–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibpap:2007_004&r=res |
| By: | Kolev, Atanas (European Investment Bank, Economic and Financial Studies); Riess, Armin (European Investment Bank, Economic and Financial Studies) |
| Abstract: | Recognising that environmental and technology externalities affect the development of renewable energy technologies, this paper illustrates how environmental policies induce technological change and how market failures that hinder technological progress weaken the impact of environmental policies on technological change; examines the rationale for and type of policies in support of renewables at an early stage of their commercialisation; analyses to what extent so-called experience curves enlighten the debate on the rationale of such policies; and - assuming that early-stage renewables cannot establish themselves in the market - develops a method for assessing the economics of renewable energy projects based on new technologies. |
| Keywords: | Environmental externalities; learning; renewables |
| JEL: | L52 O38 Q40 Q48 |
| Date: | 2007–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibpap:2007_012&r=res |
| By: | Finon, Dominique (Centre International de Recherche sur l'Environnement et le Developpement, France) |
| Abstract: | Following a brief review of the rationale for promoting renewable energy sources, this paper compares alternative policies to promote the production of renewable electricity. The focus is on feed-in tariffs (used in Germany, Spain, and France - for instance) and tradable green certificate (TGC) systems (United Kingdom and Italy, for instance). Considering economic theory and practical experience, the criteria for comparing these two alternatives are: cost-effectiveness, environmental effectiveness, and compatibility with market liberalisation. The paper argues that economic theory does not suggest a clear-cut advantage of one instrument over the other and it emphasises that, in any event, the choice of instrument depends on the relative importance attached to these criteria and on cultural factors such as faith - or lack thereof - in markets to help solve environmental problems. In this context, the paper questions the practical usefulness of a European-wide TGC system. |
| Keywords: | Renewable energy sources; feed-in tariffs; green certificates |
| JEL: | L52 Q40 Q42 Q48 |
| Date: | 2007–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:ris:eibpap:2007_011&r=res |
| By: | Francesco Caselli; Tom Cunningham |
| Abstract: | We discuss political economy mechanisms which can explain the resource curse, in which anincrease in the size of resource rents causes a decrease in the economy's total value added.We identify a number of channels through which resource rents will alter the incentives of apolitical leader. Some of these induce greater investment by the leader in assets that favourgrowth (infrastructure, rule of law, etc.), others lead to a potentially catastrophic drop in suchactivities. As a result, the effect of resource abundance can be highly non-monotonic. Weargue that it is critical to understand how resources affect the leader's "survival function", i.e.the reduced-form probability of retaining power. We also briefly survey decentralisedmechanisms, in which rents induce a reallocation of labour by private agents, crowding outproductive activity more than proportionately. We argue that these mechanisms cannot befully understood without simultaneously studying leader behaviour. |
| Keywords: | Natural resource endowment, resource curse, political economy |
| JEL: | O11 O13 P26 |
| Date: | 2009–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:cepdps:dp0913&r=res |