nep-res New Economics Papers
on Resource Economics
Issue of 2015‒11‒01
six papers chosen by
Maximo Rossi
Universidad de la República

  1. Toward a low carbon growth in Mexico : is a double dividend possible ? A dynamic general equilibrium assessment By Gissela Landa; Frédéric Reynès; Ivan Islas; François-Xavier Bellock; Fabio Grazi
  2. Energy Consumption, CO2 Emissions, and Economic Growth: A Moral Dilemma By Antonakakis, Nikolaos; Chatziantoniou, Ioannis; Filis, George
  3. Economic Impact of CO2 Emissions and Carbon Tax in Electric Vehicle Society in Toyohashi City in Japan By Yuzuru Miyata; Hiroyuki Shibusawa; Tomoaki Fujii
  4. The Green Entrepreneurial State By Mariana Mazzucato
  5. Environmental Macroeconomics: A critical literature review and future empirical research directions By Halkos, George; Paizanos, Epameinondas
  6. Tracing Brazilian states’ CO2 emissions in domestic and global trade By Denise Imori; Joaquim Jose Martins Guilhoto

  1. By: Gissela Landa (OFCE (OFCE)); Frédéric Reynès (Nederlandse Organisatie voor Toegepast Natuurwetenschappelijk Onderzoek); Ivan Islas (Instituto Nacional de Ecología y Cambio Climático (INEC)); François-Xavier Bellock (Agence Française de Féveloppement (AFD)); Fabio Grazi (Agence Française de Féveloppement (AFD))
    Abstract: This paper simulates the medium- and long-term impact of proposed and expected energy policy on the environment and on the Mexican economy. The analysis has been conducted with a Multi-sector Macroeconomic Model for the Evaluation of Environmental and Energy policy (Three-ME). This model is well suited for policy assessment purposes in the context of developing economies as it indicates the transitional effects of policy intervention. Three-ME estimates the carbon tax required to meet emissions reduction targets within the Mexican “Climate Change Law”, and assesses alternative policy scenarios, each reflecting a different strategy for the recycling of tax revenues. With no compensation, the taxation policy if successful will succeed in in reducing CO2 emissions by more than 75% by 2050 with respect to Business as Usual (BAU), but at high economic costs. Under full redistribution of carbon tax revenues, a double dividend arises and the policy is beneficial both in terms of GDP and CO2 emissions reduction.
    Keywords: Climate policy; Energy economy modelling; Energy system; Double dividend
    Date: 2015–10
  2. By: Antonakakis, Nikolaos; Chatziantoniou, Ioannis; Filis, George
    Abstract: In this study we examine the dynamic interrelationship in the output-energy-environment nexus by applying panel vector autoregression (PVAR) and impulse response function analyses to data on energy consumption (and its subcomponents), carbon dioxide emissions and real GDP in 106 countries classified by different income groups over the period 1971-2011. Our results reveal that the effects of the various types of energy consumption on economic growth and emissions are heterogeneous on the various groups of countries. Moreover, causality between total economic growth and energy consumption is bidirectional, thus making a case for the feedback hypothesis. However, we cannot report any statistically significant evidence that renewable energy consumption, in particular, is conducive to economic growth, a fact that weakens the argument that renewable energy consumption is able to promote growth in a more efficient and environmentally sustainable way. Finally, in analysing the case for an inverted U-shaped EKC, we find that the continued process of growth aggravates the greenhouse gas emissions phenomenon. In this regard, we cannot provide any evidence that developed countries may actually grow-out of environmental pollution. In the light of these findings, the efficacy of recent government policies in various countries to promote renewable energy consumption as a means for sustainable growth is questioned. Put differently, there seems to be a moral dilemma, between high economic growth rates and unsustainable environment and low or zero economic growth and environmental sustainability.
    Keywords: Energy Consumption, Economic Growth, CO2 Emission, Panel Vector Auto Regression, Panel Impulse Response Function.
    JEL: C33 O13 O44 P28 P48 Q42 Q56
    Date: 2015–10–23
  3. By: Yuzuru Miyata; Hiroyuki Shibusawa; Tomoaki Fujii
    Abstract: In this paper, we explore the economic impact of promotion and realization of an electric vehicle society (EVS) in Toyohashi City in Japan. More concretely, this paper emphasizes a computable general equilibrium (CGE) modeling approach to evaluate the following issues: economic impacts of subsidies for promotion of an EVS, economic impacts of carbon tax for reducing CO2, industrial structure change towards an EVS, and modal shift occurring towards an EVS. Our simulation results demonstrate that after applying 5 ~ 25% up subsidies to five industries including electric vehicle (EV) manufacturing, EV transport, solar power, cogeneration and other transport, the total industrial output and city GDP increase. A large growth rate is found in industries where subsidies are introduced, but non-ferrous metal industry also grows without subsidies due a repercussion effect. Moreover, it is interesting that decreasing proportions are found in oil and coal product, mining, heat supply and gasoline vehicle (GV) transport industries. However the total CO2 emission in Toyohashi City is increased being interpreted as a rebound effect. All the commodity prices decrease since subsidies are given to some industries. Hence Toyohashi CityÂfs economy shows a direction where the demand for conventional vehicles and energy use are decreased, conversely, the demand for EVs and renewable energy are increased illustrating a different life style from the current one. Regarding CO2 emissions, we introduced a carbon tax of 1,000 yen/t-CO2 for industries except the five industries mentioned above. As a result the total CO2 emission is decreased and the equivalent variation shows a positive value as compared with the base case. Thus introducing 5 ~ 25% subsidies and the carbon tax can really represent a realistic alternative society to EVS in Toyohashi City.
    Keywords: CGE model; electric vehicle; carbon tax; solar power; Toyohashi City
    JEL: Q00 Q01 Q50 Q51 Q53 Q55
    Date: 2015–10
  4. By: Mariana Mazzucato (SPRU (Science Policy Research Unit), School of Business, Management & Economics, University of Sussex, Brighton, BN1 9SL, U.K.)
    Abstract: The paper considers the direct, strategic investments that have been made by international public institutions creating and shaping (not only fixing) green technology. It builds on the key themes found in The Entrepreneurial State: debunking public vs. private sector myths.
    Keywords: Financial institutions; environment; economic development; technological change; industrial policy
    JEL: G20 O13 O16 O38 L52
    Date: 2015–10
  5. By: Halkos, George; Paizanos, Epameinondas
    Abstract: In the existing literature much attention has been given to the toolbox of regulatory policy instruments at the disposal of policy makers for addressing environmental concerns. Microeconomic treatment of environmental policy considers the optimal allocation of a given scale of resource flow within the economy, but neglects the scale and composition of economic activity relative to the ecosystem that supports it. An ecological approach to macroeconomics requires the appreciation of physical constraints to economic growth. This paper presents the theoretical underpinnings and the empirical findings of the literature on the link between economic growth and environmental quality, as well as of the relationship between fiscal policy and environmental degradation, by reviewing the relevant literature. The empirical findings on both relationships are not robust and are therefore inconclusive. The paper provides conclusions and directions for future research which may assist to solve this ambiguity on the examined relationships.
    Keywords: Environmental Macroeconomics; Economic growth; Natural resources; Fiscal policy.
    JEL: E62 P28 Q01 Q28 Q32 Q56
    Date: 2015–10
  6. By: Denise Imori; Joaquim Jose Martins Guilhoto
    Abstract: The current Brazilian position on climate change has been formalized with the law of National Climate Change Policy, which provides a legal framework for national actions aimed at mitigation and adaptation. Within PNMC, the country has defined its national voluntary reduction targets for greenhouse gases emissions, with reductions between 36.1% and 38.9% of projected emissions by 2020. The distribution of the corresponding mitigation efforts by regions is of great concern in a large country like Brazil. In fact, most of Brazilian states have established public policies on climate change. In this context, questions raised in the literature on global climate change, such as the environmental responsibility for emissions embodied in trade, also apply at the regional level, and perhaps even to a larger extent. In order to analyze at regional level the current relationship between Brazil’s CO2 emissions and domestic and global value chains, in this study we adopt a new framework that combines a world input-output table with an inter-regional input-output table. Also, a new database is compiled on Brazilian states’ energy use (by fuel) and related CO2 emissions at sectoral level, based on states’ official energy balances. We are able to evaluate the CO2 emissions in each of the 27 Brazilian states, considering their respective productive structure, energy use, as well as their trade with other states or foreign countries. We find that, in 2008, emissions from the production of inter-regionally traded goods and services corresponded to 36% of Brazilian CO2 emissions. There is great variation among states concerning their emissions intensities and carbon content of their trade relationships with their states and foreign countries.
    Keywords: CO2 emissions; input-output analysis; global value chains
    JEL: Q56 C67 R15
    Date: 2015–10–17

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