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on Resource Economics |
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Issue of 2020‒11‒16
five papers chosen by |
| By: | Olivier De Jonghe (National Bank of Belgium & Tilburg University); Klaas Mulier (Ghent University); Glenn Schepens (European Central Bank) |
| Abstract: | This paper shows that, when the price of emission allowances is sufficiently high, emission trading schemes improve the emission efficiency of highly polluting firms. The efficiency gain comes from a relative decrease in emissions rather than a relative increase in operating revenue. Part of the improvement is realized via the acquisition of green firms. The size of the improvement depends on the initial allocation of free emission allowances: highly polluting firms receiving more emission allowances for free, such as firms on the carbon leakage list, have a weaker incentive to become more efficient. For identification, we exploit the tightening in EU ETS regulation in 2017, which led to a steep price increase of emission allowances and made the ETS regulation more binding for polluting firms. |
| Keywords: | climate change; climate regulation;emission trading; firm behaviour |
| JEL: | D22 G34 G38 Q53 Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-390&r=all |
| By: | Tian, Ruijie (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | This paper examines the impact of carbon emissions trading schemes (ETS) on technical change proxied by the number of green patents in the context of the pilot ETS in China. I find a small increase of 0.16 patents per firm and year. A 10 percent increase in carbon prices increases green patents by 2 percent. The strongest effects are for the two regions in the upper range of carbon prices and for more productive firms. However, there are contrasting patterns at the extensive and intensive margins of green innovation: the pilot ETS reduces entry into green innovative activities but increases levels of innovating for firms that were innovative before they were regulated by ETS, especially for the more productive firms. This indicates that an important policy challenge is to encourage the firms covered by ETS to start innovation in green technologies; this applies particularly to the larger and more productive firms. |
| Keywords: | Carbon Pricing; Directed Technological Change; Innovation; Heterogeneous Firms. |
| JEL: | O33 O44 Q54 Q55 |
| Date: | 2020–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0797&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the social cost of carbon |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2077&r=all |
| By: | Hans Degryse (KU Leuven); Roman Goncharenko (KU Leuven); Carola Theunisz (KU Leuven); Tamas Vadasz (KU Leuven) |
| Abstract: | What is the impact of environmental consciousness (i.e., being green) as borrower and as lender on loan rates? We investigate this question employing an international sample of syndicated loans over the period 2011-2019. We find that green firms borrow at a signicantly lower spread, especially when the lender consortium can also be classifed as green, i.e., when \green-meets-green". Further tests reveal that the impact of \green-meets-green" became significant and large negative only after the acceptance of the Paris Agreement in December 2015. We argue that this is evidence for lenders responding to policy events which affect environmental attitudes. |
| Keywords: | Paris Agreement, Green Firms, Green Banks, bank lending |
| JEL: | A13 G21 Q51 Q58 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:nbb:reswpp:202010-392&r=all |
| By: | Richard S.J. Tol (Department of Economics, University of Sussex, Falmer, United Kingdom) |
| Abstract: | Video discussion of the impacts of climate change on economic growth |
| Keywords: | environmental economics, climate change, postgraduate, video |
| JEL: | Q54 |
| Date: | 2020–10 |
| URL: | http://d.repec.org/n?u=RePEc:sus:susvid:2080&r=all |