nep-res New Economics Papers
on Resource Economics
Issue of 2017‒03‒05
two papers chosen by
Maximo Rossi
Universidad de la República

  1. Rapacious Oil Exploration in face of Regime Switches: Breakthrough Renewable Energy and Dynamic Resource Wars By Frederick van der Ploeg
  2. The adoption of green energy technologies: The role of policies in an international comparison By Spyros Arvanitis; Michael Peneder; Christian Rammer; Tobias Stucki; Martin Wörter

  1. By: Frederick van der Ploeg (University of Oxford)
    Abstract: Rapacious fossil fuel extraction occurs if fossil fuel producers fear that there is a probability that their under-the-ground assets becomes worth less. They show that rapacious depletion of oil reserves occurs if there is a probability of a breakthrough renewable energy coming to the market or a probability of climate policy finally becoming seriously ambitious. These are examples of one-way regime switches leading to the so-called Green Paradox. Two-way regimes switches also lead to rapacious oil depletion. They occur if there is a chance of being removed from office in a partisan political context with perennial election cycles or if there are dynamic resource wars with the hazard of being removed from office dependent on fighting efforts. This rapacity effect is stronger in societies with bad institutions and lack of political cohesiveness.
    Keywords: D81, H20, Q31, Q38
    Date: 2017–02–21
  2. By: Spyros Arvanitis (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Michael Peneder (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Christian Rammer (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Tobias Stucki (KOF Swiss Economic Institute, ETH Zurich, Switzerland); Martin Wörter (KOF Swiss Economic Institute, ETH Zurich, Switzerland)
    Abstract: We contribute to the existing research about policy?induced technology adoption in several ways. First, we suggest a new survey design to measure the energy?related policy environment. Second, we simultaneously estimate the policy effects for the adoption propensity and the adoption intensity simultaneously and, third, we conduct an international comparison of the policy effects. Based on a representative sample of firms for Austria, Germany, and Switzerland we find that policies in all three countries essentially promote the adoption of technologies and they are practically ineffective for the intensity, which poses a great challenge to future policy designs. Voluntary agreements or demand related factors are among the most important drivers for the adoption propensity of green energy technologies. Given the current institutional framework in the surveyed countries, subsidies are more effective in Austria, taxes are more effective in Germany, and demand related factors are relatively more effective in Switzerland.
    Date: 2016–09

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