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on Energy Economics |
| By: | Pierre-André Jouvet (EconomiX, University of Paris Ouest - [-]); Ingmar Schumacher (Department of Economics, Ecole Polytechnique - CNRS : UMR7176 - Polytechnique - X, Banque Centrale du Luxembourg - [-]) |
| Abstract: | We assess the impact of being able to substitute an unlimited but costly energy substitute (like wind, solar) for a non-renewable resource (like oil, coal) in a model of sustainable growth. The prospects for sustainability on the optimal path depend crucially on the costs of this substitute.Furthermore, the poorer a country, measured in terms of capital stock at a given point in time, the later it should switch to the renewable substitute, and the more likely it will be unsustainable. Taking learning-by-doing in account, we find that this leads to an earlier switching time but does not guarantee sustainability. |
| Keywords: | backstop technology; non-renewable resource; resource substitution; sustainability; learning-by-doing. |
| Date: | 2011–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-00637960&r=ene |
| By: | Erix Ruiz; Juan Rosellón |
| Abstract: | This research presents an application of the Hogan, Rosellón and Vogelsang (2010) (HRV) mechanism to promote electricity transmission network expansion in the Peruvian electricity transmission system known as SEIN (Sistema Eléctrico Interconectado Nacional). The HRV mechanism combines the merchant and regulatory approaches to promote investment into transmission grids. This mechanism gives incentives for efficient investment in expansion of the network by the rebalancing over time of the fixed and variable charges of a two-part tariff in the framework of a wholesale electricity market with locational pricing. The expansion of the network is carried out through the sale of Financial Transmission Rights (FTR's) for the congested lines. The mechanism is applied for 103 nodes of the SEIN using detailed characteristics of generators, nodes and transmission lines. Under Laspeyres weights and linear cost of expansion of transmission capacity, it is shown that prices converge to lower levels as a result of increased transmission capacity. |
| Keywords: | Electricity transmission expansion, incentive regulation, Peru, congestion management |
| JEL: | L51 L91 L94 Q40 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1171&r=ene |
| By: | Hélène Joachain; Frédéric Klopfert |
| Abstract: | Using complementary currencies systems as policy instruments for environmental purposes is a trend that seems to be progressively emerging in Europe. The Belgian Science Policy INESPO Project ,in the framework of which the research presented in this paper was carried out, is building on this emerging trend. The aim of the INESPO project is indeed to build new instruments for energy saving policies in the household sector based on the innovative coupling of Complementary Currencies (CC) and Smart Meters (SM). This CC-SM instrument is intended to promote both behavioural changes in everyday life and investment decisions leading to increased energy efficiency. In order to gain insights for the design of the CC part of the instrument, a first step was to turn to projects that had already used in the past CC as policy instrument for behavioural change. Two projects (NU-Spaarpas and E-portemonnee) that have pioneered this path in Europe were analysed to this purpose. This analysis revealed that, although those two projects had not been left unnoticed by academics, no taxonomy of their constitutive parameters had been developed yet. This paper is intended to contribute to the research on CC as policy instrument for environmental sustainability by proposing such a taxonomy for those CC projects. The resulting hierarchical classification of parameters has already been tested as a building tool during the design phase of the INESPO project. In the process, it became evident that the conceptual frameworks used to understand and explain behaviours had a major impact on the design of the CC-SM instrument and could lead to very different choices for key parameters of the system. |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:sol:wpaper:2013/101209&r=ene |
| By: | Shiro Kawai; Kouchi Tonosaki; Kouji Tokoro |
| Abstract: | Basically, urban greenery spaces have a lot of roles such as recreational function, evacuation space, environmental conservation, and the landscape planning. Recently, in addition to these things, most scientists insist that urban greenery spaces have a wide variety of potential, which are relevant to biodiversity conservation, maintenance of ecological networks, absorption of greenhouse gas emissions, and the cooling of surrounding areas. In these roles, especially, we considered that the cooling potential by greenery spaces are very important because the urban heat island phenomenon has become a serious topic of public concern during summer. This is the reason why we are addressing this issue. Based on these ideas, this paper aims to quantify the cooling potential of urban greenery spaces in summer. Initially, we have observed that greenery space and anthropogenic heat emissions have a great effect on the temperature in downtown areas from the various data collected from 27 observation points in Minato-Ku, Tokyo. Secondly, we have clarified the cooling potential of greenery spaces. Judging from the regression analysis, it can be said that the cooling influence by greenery spaces of 22,500 square meters is equivalent to the heating influence by the anthropogenic heat released from seventy office buildings of the average size in Minato-Ku, this having a total floor area of about 211,726 square meters. Furthermore, the cooling potential of a greenery space of 22,500 square meters from July to September can be expected to reduce about 236 times as much quantity of carbon dioxide as the same greenery space absorbed for one year. Our calculations take into consideration the fact that the reduction of temperature caused by greenery spaces makes air-conditioner usage will be reduced, therefore less fossil fuel will be consumed in electricity. In conclusion, greenery spaces in urban downtown areas have the function of air-conditioning given by nature. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p74&r=ene |
| By: | Elisabetta Troglio; Tigran Haas; Matteo Doni |
| Abstract: | Nowadays, large parts of the world population (50-60%) are living in urban areas, which represent the most energy consuming systems (Buckley et al., 2009). Local governments are therefore asked to take new responsibilities in terms of energy management, adopting the urban scale as level of action, developing new methods and strategies to bring energy sustainability (saving/producing) and environmental quality into the cities. The development of a new energetic and environmental planning approach that can set energy as primary key – leading to a high level of urban efficiency and having a broad effect on other urban areas – is hence highly important. Different studies have pointed out the fundamental energetic role of urban morphology and typology (Ratti et al., 2004). Recognizing the key role of planning and design, and the contribution of modeling, some questions are arising: is it possible to analyze the performances of the built environment in a georeferenced way, considering the effect of urban design/form aspects, in order to achieve a better knowledge of those city characteristics that influence energy demand? Which is the role played by typologies in (re)orienting the energy analyses/model? Which targets can be achieved in reducing cost and energy? The project explore different factors involved in the energy performance of the city, in particular using an innovative evaluation model of heat energy demand, which has urban typologies as starting and key point of the analyses. A dynamic and georeferenced method has been specifically developed, allowing the estimation of the energy behavior of the “real†city. The empirical study is applied at the City of Gorgonzola - Italy, which holds potential both for the dimension of the built environment and the variety of urban typologies, which allow a comparison between them. Purpose of the paper is thus to analyze the results coming from the estimation, that can lead to a strong integration between energy, urban design and planning system. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1362&r=ene |
| By: | Shamsunnahar Khanam; Yuzuru Miyata; Yan Liu |
| Abstract: | Since the industrialization, the appearance of cities has been enhancing great changes of people's lives by mass production and mass consumption. Because of the human society has been developing through industrialization and urbanization, many environmental problems, such as Green House Gas (GHG) emissions, waste generation have been occurring as well. Thus, city planners and urban policy makers look forward for designing a compact city to attain a sustainable urban system. Because the form of compact city contributes to improve harmful effects of urban sprawl and offers us many benefits, such as less car dependency thus lower emissions, reduce energy consumption, etc. An influential study in 'Cities and Automobile Dependence: An International Sourcebook, 1989' by Peter Newman and Jeff Kenworthy show that the denser urban areas in the developed countries have a greater mixture of land use and lower car dependency, thus trends to lower energy consumption and emissions. However, the suburban cities in the developed countries have a common trend of high car dependency, thus increasing energy consumption and emissions. Thus, in order to reduce GHG (especial focus on CO2) emissions from the suburban areas, this research takes vehicle as subject and is dedicated to introduce an electric vehicle and the low-carbon society. The great advantage of electric vehicles will be to reduce CO2 emissions, but only when the electric automobiles are powered by natural energy, like solar power. If EVs are powered by the electricity generated from coal, gas, petroleum etc., there will be no significant impact for reducing CO2 emissions. Thus, solar energy comes first to our mind to reduce CO2 emissions. We set Toyohashi City as the study region and apply a static computable general equilibrium (CGE) model to analyze the economic impact of realization of electric automobile oriented society in Toyohashi City. Our model will show us how large the economic impact of spread of electric automobiles is, and will offer us a new industrial structure in a Low Carbon Society (LCS) in the world. And this model could be easily extended in other areas of Japan and in other countries to reduce GHG emissions and energy consumption. Keywords: Electric Vehicle (EV), Green House Gas, Low-Carbon Society. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1892&r=ene |
| By: | César Pakissi |
| Abstract: | Huambo city although currently not industrialized, list an increasing degradation of its environment in terms of atmospheric and noise pollution, for the fact of current lack of supply of electric energy, to stimulate the use of individual form, electric chain generators on the part of the city dwellers, fact that this stops beyond if disclosing as an authentic threat for the environment, besides impracticable under the economic point of view. This situation together whith an inapropriate use of the potentialities of power plants cleaner than the region offers becomes a worry subjects which are analyzed in the present work about the contribution for energy and environmental maintenance in Huambo city, on this basis the diagnosised problem and use of diverse methods, from the hypothesis that the individual production of energy in Huambo city is the main factor responsible for the atmospheric pollution that is seen in this region. Potential was analyzed three scenes that allows to characterize the current problems of energy supply in Huambo city, its economic and ambient impacts and is considered alternative that they point viable power plants under the economic and ambient point of view. Keys-words: energy, pollution and environment |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1793&r=ene |
| By: | Jorge Cerda; Carlos Marmolejo; Josep Roca |
| Abstract: | The main objective of the study is the development of a model for the evaluation of the environmental and energy efficiency of the interaction (mobility) and land use structure (called as 'territorial functionality'), applied to the metropolitan area of Barcelona . In particular there are four points that underpin the model: a) a basic land use-transportation model (LUTM), b) a model for the energy consumption and environmental emissions produced by the territorial functionality, c) a model for the consumption of land produced by the territorial functionality (developed land), and d) assessment of social equity in access to urban activities, and exposure to environmental effects. The goodness of the proposed model is that is composed of empirical models (econometric), robust in their specific topic, but spatially disaggregated (municipality). With this structure is possible to evaluate the effects of functional changes (transport projects or urban planning) in the spatial structure of energy consumption, environmental emissions, and consumption of land, and also identifying the participation (responsibility) of different territories in these effects. It is a systemic and spatial view of the role that each territory plays in the functionality, and their responsibility in the environmental effects. The model is currently under construction, joining the calibrated models of consumption and environmental emissions to an existing transport model in the metropolitan area of Barcelona. This paper presents the mathematical model, and the indicators defined for characterizing the state of the territorial system, and a simple simulation of the possible analysis and results. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p192&r=ene |
| By: | Dirk Fornahl; Robert Hassink; Claudia Klaerding; Ivo Mossig; Heike Schröder |
| Abstract: | Wind energy-related employment has been surging recently in Germany: it rose from 9,200 in 1997 to 90,000 in 2007 and is estimated to be 112,000 in 2020. The industry particularly emerged in coastal, northern Germany. Recently big hopes are particularly set on the offshore wind energy industry. Two recently discussed evolutionary concepts explain the emergence of new industries, such as wind energy, in space in different ways: the windows of locational opportunity concept stresses the locational freedom in the earliest stages of industrial development, whereas path creation emphasises the role of existing industrial development paths, such as shipbuilding, from which new paths, such as wind energy, emerge. The paper aims at analysing whether the new path of offshore wind energy emerged out of existing paths, mainly shipbuilding, in the five states of coastal Germany. It concludes that shipbuilding only indirectly affected the emergence of the new development path of offshore the wind energy industry in northern Germany. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p558&r=ene |
| By: | Georg Hirte; Stefan Tscharaktschiew |
| Abstract: | Germany like many other European countries subsidize commuting by granting the right to deduct commuting expenses from the income tax base. This regulation has often been changed and has regularly been under debate during the last decades. The pros (e.g. causing efficiency gains with respect to the spatial allocation of labor) and cons (e.g. causing urban sprawl) are well documented. Nonetheless, there is need for further research. For reasons of tractability the few models applied in the tax deduction related literature are based on restrictive assumptions particularly concerning the design of the income taxation scheme and the structure of households (neglecting household heterogeneity) and, most importantly, they do not integrate labor supply and location decision problems simultaneously. Here, for the first time, those and more features are taken into account in a full spatial general equilibrium simulation approach calibrated to an average German city. This model is applied to calculate the impacts of tax deductions on an urban economy thereby considering different funding schemes. Our results suggest that the tax deduction level currently chosen is below the optimal level in the case of income tax funding. If a change in the tax base occurs, e.g. toward consumption tax or energy tax funding, the optimal size of the subsidy should be even higher. Furthermore, the different policy packages cause a very differentiated pattern regarding welfare distribution, environmental (COâ‚‚ emissions) and congestion effects. We also find surprisingly small effects on urban sprawl characterized by suburbanization of residences and jobs and increasing commuting distances. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p274&r=ene |
| By: | Andreas P. Cornett; Nils Karl Soerensen |
| Abstract: | Most mature industrial economies faced the challenge of severe structural changes in the last decades. Traditional manufacturing moved from the metropolitan and central regions to the periphery. Later the value chain in most industries changed toward knowledge intensive and service activities. This tendency has been reinforced by the trend toward globalization and recently by the impacts of the financial crisis. The aim of the paper is to sketch the long term trends of regional and industrial development in Denmark; and to identify the drivers of economic and geographical change in the production system Denmark belongs to. The starting hypothesis is that the long term transition is driven by a combination of domestic and international factors. The first part provides an overview of the Danish economy in an international perspective focusing on structural change (i.e. the relative size of primary, secondary and tertiary activities) and the impacts of the internationalization. The second section provides an analysis of the regional structural change in Denmark with special attention on the impacts of globalization and the changes in the international production system. The main focus is on the fact that the global financial crisis seemingly has been a catalyst of a process of change, with probably irreversible impacts on the geography of economic activities in Denmark. The third part digs deeper into the processes of regional and functional transformation based on a case study of the Danish wind power industry facing fierce global competition and the challenges of international relocation, with heavy regional consequences for employment. Regional impacts in particular in Western Denmark have been significant both with regards to employment and value-added. The functional and competence profile of the industry in Denmark has transformed, reducing the content of physical production. Currently two tendencies are identified; the move from a production to a skill and knowledge based industry integrated in a global value chain, and an increasing importance of construction and service provision for production capacities in offshore locations. Keywords: International interdependence – regional and structural change – a new functional division of production – toward a service based economy |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p148&r=ene |
| By: | Michael Saunders |
| Abstract: | The City of Batumi, Georgia had suffered from a complete disintegration in public transport after the collapse of the Soviet Union in the 1990s. However, recently the city has undergone a revival period that has seen investment in all municipal sectors, including public transport. The municipally owned bus company’s bus fleet has been increased from 20 buses to 101 buses and has the potential to serve the entire 150,000 population of the coastal city. However, the initial route planning was not based upon the ability for passengers to transfer from one route to another; this created many inefficient parallel route sections. This inefficiency is affecting the company financially and causing additional energy use and carbon emissions. A study was commissioned by the City and Bus Company with the aid of the European Bank of Reconstruction and Development to optimise the bus routes and create a bus network that includes the ability to transfer from one route to another. The initial results have shown that at least 30% operational, energy and carbon savings can be achieved following a two year action plan that includes creation of a central transfer terminal and optimisation of bus routes. The new bus routes cover the same territory at even lesser intervals which also benefits the passenger. In addition, the citizen of Batumi will have complete access to the whole city via public transport, making the city more accessible for those reliant on public transport or who chose it over the motor vehicle. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p339&r=ene |
| By: | Jorge Cerda; Yraida Romano; Claudia Perez; Josep Roca |
| Abstract: | The study of the developed land and the energy consumption is part of a main project, which objective is the development of a model for the evaluation of the environmental and energy efficiency of the interaction (mobility) and land use structure (called as 'territorial functionality'), applied to the metropolitan area of Barcelona . One of the most important points of the main project is the modeling of energy consumption, and developed land produced by the territorial functionality. This paper presents the calibrations results of econometrics models (log-log) for developed land, and electricity consumption. The used information for those models was; built surface by activity (cadastre), coverings of land uses of Catalonia (CREAF), electric consumption by economic activity (CNAE), meteorological variables, and operating time of activities. The analysis was for the 164 municipalities of the metropolitan area of Barcelona. The electric consumption was analyzed in different categories of activities like as residential, industrial, trade, financial services, hotels, transport, education, public lighting, etc. The artificial area was differentiated in three categories; cadastre surface, streets, and developed land without cadastre. Overall, the results show that the extension of developed land depends (with 0.8 R2) mainly from single-family homes, followed by industrial activities, and finally sport activities. The trade activities induce a contraction of developed land, result that is consistent with agglomeration economies. The different models calibrated for energy consumption show a strong dependence (with R2 between 0.5 and 0.9) first with built surface, and second with other variables such as weather condition in the municipality (minimum temperature in summer), and average operating time of the activities (mean work time, shopping time, etc). Finally, the electric consumption by public lighting depends significantly on the developed land, representing the union between the two dimensions of the study. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p193&r=ene |
| By: | Travaglini, Giuseppe; Rugiero, Serena |
| Abstract: | In this paper we argue that energy efficiency and environmental efficiency are two aspects of the same problem. To show this, we assess the analytical utility of the well-known IPACT and ImPACT models, presenting here a new developed identity named Augmented ImPACT. For Italy, our findings suggest that over the last twenty years the rise of energy efficiency has been accompanied by a controversial consumption of environmental resources and of CO2 accumulation. Specifically, the italian sector of services appears to be highly inefficient. In the second part of the paper we use a VAR model to estimate the impact of energy efficiency on economy, looking at employment value added and polluted emissions. Our results suggest that a rise in energy efficiency can help in improving both economic and environmental scenarios. |
| Keywords: | Contabilità ambientale; efficienza energetica e ambientale; VAR; simulazioni di risposta all'impulso |
| JEL: | Q53 C30 Q43 |
| Date: | 2011–09–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:34520&r=ene |
| By: | Atsumi Furuya; Masahito Fukami; Harald Ellingsen; Seiichi Kagaya |
| Abstract: | Japan’s fish production volume in 2008 was 5.59million tons, it accounted for 4% of world’s production and consisted of catch (4.40million tons) and aquaculture (1.19 million tons). For the far sea fishery, its’ fishing grounds are in domestic and foreign countries’ exclusive economic zone and international waters, since the total production volume of this fishery has been declining, offshore and coastal fishery have become mainly in Japan. In this study, the estimation of the energy consumptions in a kelp aquaculture and three types of fisheries, such as squid, fixed net and gill net, is done for comparison to the consumptions of fisheries in foreign countries. The result reveals that the characteristics of these fisheries’ energy consumptions and the measures for reductions of energy use. Furthermore, in Minamikayabe as surveyed fishing village, the carbon dioxide balance in this village is evaluated. The carbon dioxide emissions from the energy (fuel and electricity) use and the escape Chlorofluorocarbons (CFCs) and Hydrochlorofluorocarbons (HCFCs) from freezers, refrigerators and ice manufacture machines in the village are calculated. Meanwhile, as forests and oceans are carbon dioxide sinks, it is possible to estimate the volume of carbon dioxide stored by woods and seaweed along the coast. Finally, several measures for carbon dioxide reductions are shown. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1322&r=ene |
| By: | Lei Zhu (Center for Energy and Environmental Policy Research, Institute of Policy and Management, Chinese Academy of Sciences); ZhongXiang Zhang (East-West Center); Ying Fan (Center for Energy and Environmental Policy Research, Institute of Policy and Management, Chinese Academy of Sciences) |
| Abstract: | This paper applies real options theory to establish an overseas oil investment evaluation model that is based on Monte Carlo simulation and is solved by the Least Squares Monte-Carlo method. To better reflect the reality of overseas oil investment, our model has incorporated not only the uncertainties of oil price and investment cost but also the uncertainties of exchange rate and investment environment. These unique features have enabled our model to be best equipped to evaluate the value of oil overseas investment projects of three oil field sizes (large, medium, small) and under different resource tax systems (royalty tax and production sharing contracts). In our empirical setting, we have selected China as an investor country and Indonesia as an investee country as a case study. Our results show that the investment risks and project values of small sized oil fields are more sensitive to changes in the uncertainty factors than the large and medium sized oil fields. Furthermore, among the uncertainty factors considered in the model, the investment risk of overseas oil investment may be underestimated if no consideration is given of the impacts of exchange rate and investment environment. Finally, as there is an important tradeoff between oil resource investee country and overseas oil investor, in medium and small sized oil investment negotiation the oil company should try to increase the cost oil limit in production sharing contract and avoid the term of a windfall profits tax to reduce the investment risk of overseas oil fields. |
| JEL: | Q41 Q43 Q48 G31 O13 O22 C63 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:ewc:wpaper:wp121&r=ene |
| By: | Joaquim Guilhoto; Cinthia Costa; Marcelo Cunha; Kathleen Araujo |
| Abstract: | Sustainable energy strategies require decision-makers in government, industry, academia and civil society alike to make choices among tradeoffs. Within the transport sector alone, ethanol has been shown to be the dominant solution among viable, low carbon options to date, yet questions remain over the economic and ecological impacts of this industry. In Brazil - the largest producer of sugarcane-based ethanol and a country with over three decades of ethanol development – we find a strong basis for evaluating the ethanol industry’s role in a national economy. In the mid 1970’s, Brazilian ethanol production received an important boost with the launch of the “Proálcool†program. The ethanol industry has subsequently evidenced flux until its consolidation in the period following 2000. Over the course of three decades, economic, institutional, technological and environmental determinants have factored in the success of Brazilian ethanol diffusion. In economic terms, price tradeoffs for ethanol vs. sugar and ethanol vs. gasoline played a role in scale-up of the biofuel together with balance of payment considerations. From an institutional standpoint, support for the Proálcool program, deregulation of the sugar-cane sector in the 1990’s and fuel pump adaptations also factored. With respect to technology, the development of flex fuel cars, greater use of mechanized harvesting, and launch of domestic, co-generated, electrical power were key drivers. Finally, in environmental terms, challenges associated with pollution and public health in major cities as well as questions related to climate change gained visibility. In this paper, we analyze a set of input-output tables for the Brazilian economy from 1975 to 2008, taking the above factors into consideration. Deriving a series of indicators, such as multipliers and linkages, we study the evolution of the ethanol sector’s role in the Brazilian economy and its relation to the productive structure of the country. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1478&r=ene |
| By: | Grant Allan (Department of Economics, Fraser of Allander Institute, University of Strathclyde) |
| Abstract: | The regional economic impact of biofuel production depends upon a number of interrelated factors: the specific biofuels feedstock and production technology employed; the sector’s embeddedness to the rest of the economy, through its demand for local resources; the extent to which new activity is created. These issues can be analysed using multisectoral economic models. Some studies have used (fixed price) Input-Output (IO) and Social Accounting Matrix (SAM) modelling frameworks, whilst a nascent Computable General Equilibrium (CGE) literature has also begun to examine the regional (and national) impact of biofuel development. This paper reviews, compares and evaluates these approaches for modelling the regional economic impacts of biofuels. |
| Keywords: | biofuels; economic modelling; input-output; social accounting matrix; computable general equilibrium. |
| JEL: | D57 D58 R13 R11 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:str:wpaper:11-30&r=ene |
| By: | Feng XU; Nan XIANG; Shanshan WANG; Yang LI; Takeshi MIZUNOYA; Yabar HELMUT |
| Abstract: | Recently, various environmental problems have been generated with the rapid economic development in China. That’s because China currently over-emphasized economic development beyond environmental issues; therefore, now it is important to enforce optimal environmental policies in order to achieve economic development as well as environmental improvement. In this study, we selected Jiaxing city as research area for that the environmental pollution problem has become prominent with economic high growth, and we constructed environmental system model and social economic model to establish the scenarios. Through computer simulation, we can evaluate the efficiency of the comprehensive environmental policies from both environmental preservation and social economic development aspects. While the social-economic model shows the socioeconomic activities which are vital events, fortune and service, such as production, finance and budget; the environmental system model shows the water pollutants and the greenhouse gas movement in the region. The dynamic optimization simulation is accomplished based on this environmental and socio-economic system model. In view of the restriction on water pollutants, greenhouse gas total exhausted amount, and economic activity in the catchment area, the simulation we practiced can provide concrete inner-generating optimal policies which can achieve the best economic and environment improvement with the consideration of policy, regional and timing choice in Jiaxing City, China. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p547&r=ene |
| By: | Hallegatte, Stephane; Heal, Geoffrey; Fay, Marianne; Treguer, David |
| Abstract: | Green growth is about making growth processes resource-efficient, cleaner and more resilient without necessarily slowing them. This paper aims at clarifying these concepts in an analytical framework and at proposing foundations for green growth. The green growth approach proposed here is based on (1) focusing on what needs to happen over the next 5-10 years before the world gets locked into patterns that would be prohibitively expensive and complex to modify and (2) reconciling the short and the long term, by offsetting short-term costs and maximizing synergies and economic co-benefits. This, in turn, increases the social and political acceptability of environmental policies. This framework identifies channels through which green policies can potentially contribute to economic growth. However, only detailed country- and context-specific analyses for each of these channels could reach firm conclusion regarding their actual impact on growth. Finally, the paper discusses the policies that can be implemented to capture these co-benefits and environmental benefits. Since green growth policies pursue a variety of goals, they are best served by a combination of instruments: price-based policies are important but are only one component in a policy tool-box that can also include norms and regulation, public production and direct investment, information creation and dissemination, education and moral suasion, or industrial and innovation policies. |
| Keywords: | Environmental Economics&Policies,Climate Change Economics,Economic Theory&Research,Transport Economics Policy&Planning,Energy Production and Transportation |
| Date: | 2011–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5872&r=ene |
| By: | Peng Wu; Ying Jin; Yongjiang Shi |
| Abstract: | As a stark contrast to the diminishing media profile of the UN climate change talks, the global manufacturers appear to have become more carbon aware than ever before. Carbon audits have been carried out within many corporations to assess the carbon intensity of production processes. This is partly to address cost issues of the present (i.e. the recent rise in fossil fuel prices) and of the future (e.g. new carbon related taxes and trade tariffs). Moreover, the adoption of low carbon, clean manufacturing processes has become an increasingly prominent part of branding for many products, which could affect market share and business performance in ways that go beyond questions of cost competitiveness. How will this carbon awareness affect the configuration of the value chains of global manufacturing? Will the individual manufacturers’ decisions lead to an effective reduction of total carbon emissions at the global value chain scale? Our paper aims to answer these questions through developing a theoretical model and testing it empirically through case studies of global value chains. The model accounts explicitly costs of energy, carbon, other intermediate inputs and primary inputs in the production and transport of each component, product assembly and delivery to the market. Much work has been done on the value chain location problem – e.g. on the production unbundling among different countries from a macro-economic perspective, or on operations management at the microscopic or individual manufacturer level. It is only until recently that the economic and technology aspects have been combined in the study of global value chains (for example in the paper by Baldwin and Venables in last year’s ERSA Congress). The appropriate spatial scale for our research questions would appear to be at a meso-level: i.e. the model goes beyond the micro-level operational analysis of a single plant to cover the entire value chain for a given product, but does not cover the full interactions at the macro level. This perspective is relatively rare in the literature and provides a tool that connects the micro level and macro level perspectives. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1724&r=ene |
| By: | ZhongXiang Zhang (East-West Center); ; |
| Abstract: | Paragraph 31(iii) of the Doha Ministerial Declaration mandates to the liberalization of environmental goods and services. This mandate offers a good opportunity to put climate-friendly goods and services on a fast track to liberalization. Agreement on this paragraph should represent one immediate contribution that the WTO can make to fight against climate change. This paper presents the key issues surrounding the liberalization of trade in climate-friendly goods and technologies in WTO environmental goods negotiations. It begins with discussing what products to liberalize and how. Given that WTO Members are divided by this key issue, the paper explores options to move current negotiations on the liberalization of trade in environmental goods and technologies forward, both within and outside the WTO. Recognizing that there is no one-size-fits-all strategy for tariff liberalization for all countries and for all environmental goods, the paper suggests the need for a high degree of flexibility to accommodate different situations and stakes in the liberalization of trade in environmental goods. Given that there are simply not enough environmental markets or these markets are weak in many developing countries, the paper emphasizes that creating markets for environmental goods in developing countries is far more important than just improving market-access conditions for associated goods, and discusses how to best serve the interests and concerns of developing countries. |
| JEL: | F18 F13 P28 Q42 Q48 Q56 Q54 Q58 Q48 |
| Date: | 2011–10 |
| URL: | http://d.repec.org/n?u=RePEc:ewc:wpaper:wp120&r=ene |
| By: | Joseph E. Aldy; Robert Stavins |
| Abstract: | Because of the global commons nature of climate change, international cooperation among nations will likely be necessary for meaningful action at the global level. At the same time, it will inevitably be up to the actions of sovereign nations to put in place policies that bring about meaningful reductions in the emissions of greenhouse gases. Due to the ubiquity and diversity of emissions of greenhouse gases in most economies, as well as the variation in abatement costs among individual sources, conventional environmental policy approaches, such as uniform technology and performance standards, are unlikely to be sufficient to the task. Therefore, attention has increasingly turned to market-based instruments in the form of carbon-pricing mechanisms. We examine the opportunities and challenges associated with the major options for carbon pricing: carbon taxes, cap-and-trade, emission reduction credits, clean energy standards, and fossil fuel subsidy reductions. |
| JEL: | D02 F18 H23 K32 L38 Q28 Q48 Q5 Q54 Q58 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17569&r=ene |
| By: | Mendelsohn, Robert; Emanuel, Kerry; Chonabayashi, Shun |
| Abstract: | This paper constructs an integrated assessment model of tropical cyclones in order to quantify the impact that climate change may have on tropical cyclone damages in countries around the world. The paper relies on a tropical cyclone generator in each ocean and several climate models to predict tropical cyclones with and without climate change. A damage model is constructed to compute the resulting damage when a cyclone strikes each country. Economic development is expected to double global tropical cyclone damages because more will be in harm's way. Climate change is expected to double global damage again, causing an additional $54 billion of damage per year. The damage is projected to be concentrated in North America and eastern Asia but many Caribbean islands will suffer the highest damages per unit of GDP. Most of the increased damage will be caused by rare but very powerful storms. |
| Keywords: | Climate Change Economics,Climate Change Mitigation and Green House Gases,Hazard Risk Management,Science of Climate Change,Global Environment Facility |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5562&r=ene |
| By: | Mendelsohn, Robert; Emanuel, Kerry; Chonabayashi, Shun |
| Abstract: | This paper quantifies hurricane damage caused by climate change across the US. A damage function is estimated from historic hurricane data to measure the impacts at each location given the storm's strength. The minimum barometric pressure of each storm turns out to be a better indicator of damages than the traditional measure of maximum wind speed. A hurricane generator in the Atlantic Ocean is then used to create 5000 storms with and without climate change. Combining the location and intensity of each storm with the income and population projected for each location, it is possible to estimate a detailed picture of how hurricanes will impact each state with and without climate change. Income and population growth alone increase expected baseline damage from $9 to $27 billion per year by 2100. Climate change is expected to increase damage by another $40 billion. Over 85 percent of these impacts are in Florida and the Gulf states. The 10 percent most damaging storms cause 93 percent of expected damage. |
| Keywords: | Climate Change Economics,Climate Change Mitigation and Green House Gases,Hazard Risk Management,Science of Climate Change,Global Environment Facility |
| Date: | 2011–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:5561&r=ene |
| By: | Ravi Bansal; Marcelo Ochoa |
| Abstract: | This article makes a contribution towards understanding the impact of temperature fluctuations on the economy and financial markets. We present a long-run risks model with temperature related natural disasters. The model simultaneously matches observed temperature and consumption growth dynamics, and key features of financial markets data. We use this model to evaluate the role of temperature in determining asset prices, and to compute utility-based welfare costs as well as dollar costs of insuring against temperature fluctuations. We find that the temperature related utility-costs are about 0.78% of consumption, and the total dollar costs of completely insuring against temperature variation are 2.46% of world GDP. If we allow for temperature-triggered natural disasters to impact growth, insuring against temperature variation raise to 5.47% of world GDP. We show that the same features, long-run risks and recursive-preferences, that account for the risk-free rate and the equity premium puzzles also imply that temperature-related economic costs are important. Our model implies that a rise in global temperature lowers equity valuations and raises risk premiums. |
| JEL: | E0 G0 Q0 |
| Date: | 2011–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:17574&r=ene |
| By: | Bruno Nkuiya |
| Abstract: | We characterize the equilibrium level of emissions, the equilibrium stock of global pollution and the discounted net social welfare for both the cooperative and non-cooperative equilibria when the countries face the threat of a sudden irreversible jump in the global damages at an unknown date. The goal is to analyze the impact of this type of uncertainty on the equilibrium behavior of the countries. We find that it can have a significant effect on those equilibria. Countries reduce their emissions to mitigate their exposure to this threat. As the level of threat rises, countries adjust their emissions to lower the stock of pollutant. However, although initially this threat has the effect of lowering the discounted net welfare, it can in the long run have a net positive effect on welfare. The emissions trajectory is non-monotonic and discontinuous, but only under the threat. |
| Keywords: | Global pollution, environmental uncertainty, regime shift, stochastic differential games |
| JEL: | C61 C7 D81 Q54 |
| Date: | 2011 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:creacr:2011-1&r=ene |
| By: | Sofia Franco; Antonieta Sa; Renato Rosa |
| Abstract: | Forests can play a major role in climate regulation by reducing levels of carbon dioxide and other greenhouse gases in the atmosphere. Forests also provide a range of other ecological goods and services such as biodiversity and watershed protection and amenity benefits. On the other hand, deforestation and suburban sprawl have substantially changed and fragmented our landscape. While the economic importance of open space and forest amenities and the implications of nontimber benefits for harvesting within the traditional Faustmann framework are well understood, the feedback effects between urban development and forest land changes are not. However, the development of a framework to fully exploit the interplay between urban development and deforestation may reinforce the workings of emission reduction programs if co-benefits from land-based mitigation are realized. The purpose of this paper is to offer a first step towards such framework. In particular, this paper has developed a model of a single forest owner operating with perfect foresight in a dynamic open-city environment that allows for switching between alternative competing land uses (forest and urban use) at some point in the future. The model also incorporates external values of an even-aged standing forest in addition to the value of timber when it is harvested. Timber is exploited based on a multiple rotation model a la Faustmann with clear-cut harvesting. In contrast to previous models, our alternative land use to forest land is endogenous. Within this framework, we study the problem of the private owner as well as that of the social planner, when choosing the time to harvest, the time to convert land and the intensity of development. We also examine the extent to which the two-way linkage between urban development and forest management practices (timber production and provision of forest amenities) contributes to economic efficiency and improvements in non-market forest benefits. Finally, we consider policy options available to a regulator seeking to achieve improvements in efficiency including anti-sprawl policies (impact fees and density controls) and forest policies such a yield tax. Numerical simulations illustrate our analytical results. |
| Date: | 2011–09 |
| URL: | http://d.repec.org/n?u=RePEc:wiw:wiwrsa:ersa11p1472&r=ene |
| By: | Kalirajan, Kaliappa (Asian Development Bank Institute); Singh, Kanhaiya (Asian Development Bank Institute); Thangavelu, Shandre (Asian Development Bank Institute); Venkatachalam, Anbumozhi (Asian Development Bank Institute); Perera, Kumidini (Asian Development Bank Institute) |
| Abstract: | There is an urgent need to mainstream the key challenges of climate change into sector and development planning and decision making processes to create sustainable long-term development. Empirical results in this study emphasize that more caution is needed in directing overseas development aid (ODA) towards climate change mitigation and adaptation due to the links between various macroeconomic variables related to growth and poverty reduction. |
| Keywords: | climate change; overseas development assistance; millennium development goals; technology transfer |
| JEL: | F35 O19 P33 Q56 |
| Date: | 2011–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:ris:adbiwp:0318&r=ene |