nep-res New Economics Papers
on Resource Economics
Issue of 2023‒05‒01
four papers chosen by
Maximo Rossi
Universidad de la República

  1. The Value of Electricity Reliability: Evidence from Battery Adoption By Brown, David P.; Muehlenbachs, Lucija
  2. The Green Innovation Premium: Evidence from U.S. Patents and the Stock Market By Markus Leippold; Tingyu Yu
  3. The Economic Impact of Tropical Cyclones: Case Studies in General Equilibrium By Jere Lehtomaa; Clément Renoir
  4. Environmental matters in sport: sustainable research in the academy By Tim Breitbarth; Brian P Mccullough; Andrea Collins; Anna Gerke; David M Herold

  1. By: Brown, David P. (University of Alberta, Department of Economics); Muehlenbachs, Lucija (University of Calgary)
    Abstract: To avoid electric-infrastructure-induced wildfires, millions of Californians have had their power cut for hours to days at a time. We show that rooftop solar-plus-battery storage systems increased in zip codes with the longest power outages. Rooftop solar panels alone will not help a household avert outages, but a solar-plus-battery-storage system will. Using this fact, we obtain a revealed preference estimate of the willingness to pay for electricity reliability, the Value of Lost Load, a key parameter for electricity market design. Our estimate, of around $4, 300/MWh, suggests California's wildfire-prevention outages resulted in losses from foregone consumption of $322 million to residential electricity consumers.
    Keywords: batteries; reliability; averting expenditures; power outages; Value of Lost Load
    JEL: Q40 Q54 Q58
    Date: 2023–04–18
  2. By: Markus Leippold (University of Zurich; Swiss Finance Institute); Tingyu Yu (University of Zurich)
    Abstract: This paper investigates if firms’ green innovation efforts are reflected in their stock market prices. Firms with a higher proportion of green patents experience lower stock returns than those with a lower percentage. A long-short portfolio based on green patent shares has an average annual return of 8%, which remains significant when we control for common risk factors. However, firms with high green patent shares outperform their counterparts after events that increase climate concerns and strengthen environmental regulations. Moreover, firms with green innovation attract more institutional ownership and can weakly decrease their future carbon intensity and incident involvement.
    Keywords: Green patents, cross-section of stock returns, event study, institutional investors
    JEL: G12 G14 O34 Q55
    Date: 2023–03
  3. By: Jere Lehtomaa (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland); Clément Renoir (Center of Economic Research, ETH Zurich, Zurichbergstrasse 18, 8092 Zurich, Switzerland)
    Abstract: We present a new framework for estimating the long-run economic impacts of natural disasters. Our approach combines a disaster impact model with a general equilibrium model of the economy. We apply the methodology to study the effects of tropical cyclones in the United States, the Caribbean islands, Japan, China, and the Philippines. Our results show that the post-disaster recovery after a single shock can take several decades, with notable cumulative negative effects for frequently affected regions. For instance, cyclone activity reduces long-run aggregate consumption between 0.3 - 22 %, depending on the region. To evaluate the robustness of our results, we extend the model with two additional scenarios. First, we consider endogenous economic productivity gains from specialization. Second, we add a scenario where climate change alters the intensity and frequency of future disasters. The extensions slightly modify the numerical results but do not change the qualitative conclusions.
    Keywords: Tropical Cyclones, Climate Change, Growth, General Equilibrium
    JEL: C63 O11 Q54
    Date: 2023–04
  4. By: Tim Breitbarth (Cologne Business School); Brian P Mccullough (Texas A&M University [College Station]); Andrea Collins (Cardiff University); Anna Gerke (Audencia Business School); David M Herold (QUT - Queensland University of Technology [Brisbane])
    Abstract: Research Question: Climate change continues to be a critical issue that impacts the ways we produce and consume sport. The extent to which sport responds to climate change (e.g. minimizing carbon emissions, adapting to climate impacts) will become more dire. Thus, it is crucial for sport to respond now to address current and emerging sustainability challenges. The popularity of sport can create opportunities to promote and influence individual behaviour change and drive organizational efforts to be environmentally sustainable. Research Methods: The sport management academy is currently limited in its efforts to highlight, examine, and educate industry and students on the issues raised due to changes in the natural environment and the impact on the sport sector. The five articles included in this special issue aim to begin to bridge this gap. Results and Findings: Sport is not inherently sustainable or unsustainable. We introduce this special issue to provide an overview of the current and future environmental challenges in sport management. Implications: We encourage sport researchers to critically assess existing practices and enhance the management knowledge that not only influences the world of sport and sport managers, but also policymakers and sport fans on mitigating the impacts of climate change. We hope the following articles spark ideas, discussions, and further research projects.
    Keywords: Ecology environmental sustainability climate change global warming sport management, Ecology, environmental sustainability, climate change, global warming, sport management
    Date: 2023–01–31

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