|
on Energy Economics |
|
Issue of 2012‒07‒08
forty-five papers chosen by Roger Fouquet Basque Climate Change Centre, Bilbao, Spain |
| By: | Martin Bohl; Philipp Kaufmann; Patrick Stephan |
| Abstract: | Stocks of German renewable energy companies have commonly been regarded as lucrative investment opportunities. Their innovative line of business initially seemed to promise considerable future earnings. As shown by two powerful bubble tests, the positive sentiment for renewable energy stocks even led to explosive price behavior in the mid-2000s. However, intense sector competition and the economic downturn following the global financial crisis erased profit margins to a large extent. As a result, the former fad stocks have recently turned into losers, loading negatively on price momentum and delivering significantly negative Carhart (1997) four-factor alphas. The radical shift in Germany's energy policy following the Fukushima nuclear disaster in Japan could thus only temporarily halt the continuing decline in alternative energy stock prices. |
| Keywords: | Renewable Energy Stocks, Performance Measurement, Speculative Bubbles, Sup ADF Test, Markov Regime-Switching ADF Test |
| JEL: | G10 G11 G12 Q42 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:cqe:wpaper:2412&r=ene |
| By: | Paul Collier; Anthony J. Venables |
| Abstract: | Africa is well endowed with potential for hydro and solar power, but its other endowments – shortages of capital, skills, and governance capacity – make most of the green options relatively expensive, while its abundance of hydro-carbons makes fossil fuels relatively cheap. Current power shortages make expansion of power capacity a priority. Africa’s endowments, and the consequent scarcities and relative prices, are not immutable and can be changed to bring opportunity costs in Africa closer to those in the rest of the world. The international community can support by increasing Africa’s supply of the scarce factors of capital, skills, and governance. |
| Keywords: | Africa, climate change, energy, renewable, leapfrog, latecomer |
| JEL: | Q54 Q5 Q40 O55 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:csa:wpaper:2012-06&r=ene |
| By: | Kimberly Burnett (UHERO, University of Hawaii at Manoa); Christopher Wada (UHERO, University of Hawaii at Manoa) |
| Abstract: | This report provides the first comparison of standard economic indicators for three sectors that are key to future sustainability in Hawai‘i - renewable energy, agriculture and natural resource management. Economic information has long been collected for many sectors in Hawai‘i, including agriculture and energy, but no systematic surveys have been conducted on the NRM sector to date. With support from The Nature Conservancy and Hau‘oli Mau Loa Foundation, the University of Hawai‘i Economic Research Organization was tasked with characterizing this important part of Hawai‘i’s economy, in terms of number and types of jobs, salaries, and annual expenditures. |
| Keywords: | Hawaii, Green Growth, Agriculture, Energy, Natural Resource Management |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:hae:wpaper:2012-2&r=ene |
| By: | Pauline Lacour (CREG - Centre de recherche en économie de Grenoble - Université Pierre Mendès-France - Grenoble II : EA4625); Jean-Christophe Simon (EDDEN - Economie du développement durable et de l'énergie - CNRS : FRE3389 - Université Pierre Mendès-France - Grenoble II) |
| Abstract: | Les stratégies de développement contemporaines se déploient dans un univers particulièrement incertain - en particulier du fait de la contrainte climatique. Cette contrainte est de plus en plus prise en compte par les pays du Sud comme en témoignent la mobilisation dans le cadre de la convention sur le climat (CNUCC) mais aussi la mise en oeuvre des dispositions du Protocole de Kyoto, et tout particulièrement le Mécanisme de Développement Propre (MDP). A travers l'analyse du MDP, notre contribution examinera l'efficacité du mécanisme pour deux dimensions majeures de la politique climatique des pays en développement : la réduction des émissions sectorielles de gaz à effet de serre, et le transfert des technologies pour fonder une économie "décarbonée". La contribution est basée sur des travaux visant à apprécier la portée des projets MDP dans les stratégies de développement durable des pays en développement. Elle s'appuie sur des rapports récents analysant le fonctionnement du MDP depuis 2005 ainsi que sur les statistiques officielles de l'UNFCCC. Notre travail vise à caractériser la relation entre la diversité des projets MDP et l'intensité des transferts mobilisés entre pays développés financeurs et pays en développement récepteurs. Nous retiendrons une approche à deux niveaux : macro pour un groupe de pays ayant hébergé un nombre significatif de projets et micro à travers une étude détaillée portant sur les projets installés en Chine. |
| Keywords: | développement durable ; protocole de Kyoto ; pays en développement ; politique de développement ; politique climatique ; transfert de technologie ; mécanisme pour un développement propre ; Chine |
| Date: | 2012–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00713067&r=ene |
| By: | Benjamin, Richard M |
| Abstract: | This paper provides a technical primer for the energy economist wishing to study the optimal power flow problem. The paper’s aims are to provide the reader with sufficient technical background sufficient to calculate power transfer distribution factors (PTDF’s, or network shift factors) for a more complicated model than the simple 3-node model common to energy economics studies and to understand the optimal power flow problem. |
| Keywords: | optimal power flow; power transfer distribution factors; Alternating Current; Direct Current |
| JEL: | Q40 |
| Date: | 2012–06–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:39666&r=ene |
| By: | Steffen JENNER; Lotte OVAERE; Stephan SCHINDELE |
| Abstract: | In the last two decades, many U.S. states introduced support policies to promote electricity generation from renewable energy sources. Renewable portfolio standards are their most popular policy choices to date. This paper tackles the question why some state legislators were front-running the trend of RPS implementation while others adopted policies just recently, and again others have not incentivized investment so far. In short, what drives states to support renewable energy? We base our empirical analysis on theoretical reasoning. First, we present an application of the common agency model developed by Dixit et al. (1997) to better understand the impact of special industrial interests on policy decision-making. Second, we compile data on financial contributions of conventional energy interests (CEI) and renewable energy interests (REI) to state-level policymakers between 1998 and 2006. Third, in a series of panel, hazard and tobit regressions, we test the impact of these financial contributions on (i) the probability of a state to adopt a RPS policy and (ii) on the stringency of the RPS. We also control for state effects, time trends, and a set of socio-economic and political covariates. Combining our empirical framework with the theoretical model produces key insights into U.S. state level energy policy making. First, CEI have donated over-proportionally to state-level legislators affiliated with the Republican party while contributions from REI went largely to Democrats. Second, we reveal statistically significant links between the likelihood of RPS adoption and private interest contributions. Financial contributions from CEI have a negative impact on the likelihood of RPS adoption while REI contributions have a positive impact. Third, the estimates show a similar – albeit less significant – pattern on RPS stringency. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ete:ceswps:ces12.09&r=ene |
| By: | Marie Hyland; Ronan C. Lyons; Sean Lyons |
| Abstract: | Following the transposition of the EU Energy Performance of Buildings Directive into Irish law, all properties offered for sale or to let in Ireland are obliged to have an energy efficiency rating. This paper analyses the effect of energy efficiency ratings on the sale and rental prices of properties in the Republic of Ireland. Using the Heckman selection technique we model the decision to advertise the energy efficiency rating of a property and the effect of energy efficiency ratings on property values. Our results show that energy efficiency has a positive effect on both the sales and rental prices of properties, and that the effect is significantly stronger in the sales segment of the property market. We also analyse the effect of energy efficiency across different market conditions and we find that the effect of the energy rating is stronger where market conditions are worse. |
| Keywords: | Domestic building energy ratings, Hedonic valuation, Ireland |
| JEL: | Q51 R31 Q58 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:614&r=ene |
| By: | Hayashi, Takashi; Yamamoto, Mitasu |
| Abstract: | The world is facing serious resource shortage and environmental problems. Eco-efficiency is more attention for sustainable development not only in manufacturing sector but also agricultural sector. This study investigates whether Japanese agriculture improves its eco-efficiency. To conduct the analysis, we, first, develop a System of Environmental and Economic Accounting (SEEA) for agriculture and forestry, and then estimate the eco-efficiencies and Factor values (FVs) of the agricultural sector, using a case study in Japan. Eco/energy-efficiencies and FVs are estimated based on greenhouse gas emission, acidification, eutrophication, air pollution, and energy and water use in every five year from 1985 to 2005. The results shows that although the absolute amounts of environmental impact and resource use have declined, eco/resource-efficiencies have worsened and FVs are less than 1 throughout the estimation period. Further governmental support for farmers is required to achieve improved eco-efficiency. |
| Keywords: | Eco-efficiency, Factor value, System of Environmental and Economic Accounting (SEEA), Agriculture, Japan, Environmental Economics and Policy, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126199&r=ene |
| By: | Tesfatsion, Leigh; Aliprantis, Dionysios |
| Abstract: | This study proposes an explicit practical reformulation of the Day-Ahead Market (DAM) design implemented in centrally managed United States wholesale electrical power markets. This reformulation takes into account the financial nature of DAM outcomes as well as the temporal positioning of the DAM on any day D-1 within a cascade of market and administrative processes aimed at ensuring the efficient procurement of adequate power at each operating point of day D. A key aspect of the reformulation is that the non-profit Independent System Operator (ISO) or Regional Transmission Organization (RTO) managing the DAM is permitted to augment generation company supply offers and load-serving entity demand bids with ISO-determined virtual generation offers and demand bids. This added flexibility would help ISOs/RTOs to weigh the cost of alternative resource procurement opportunities and to hedge uncertainty regarding future variable generation and load levels. |
| Keywords: | Day-ahead market; economic dispatch; electrical energy; financial contracts; Forecasting; forward planning; unit commitment; virtual demand bid; virtual supply offer |
| JEL: | D4 D8 G1 Q4 |
| Date: | 2012–06–26 |
| URL: | http://d.repec.org/n?u=RePEc:isu:genres:35243&r=ene |
| By: | Carmine De Franco; Peter Tankov; Xavier Warin |
| Abstract: | We develop algorithms for the numerical computation of the quadratic hedging strategy in incomplete markets modeled by pure jump Markov process. Using the Hamilton-Jacobi-Bellman approach, the value function of the quadratic hedging problem can be related to a triangular system of parabolic partial integro-differential equations (PIDE), which can be shown to possess unique smooth solutions in our setting. The first equation is non-linear, but does not depend on the pay-off of the option to hedge (the pure investment problem), while the other two equations are linear. We propose convergent finite difference schemes for the numerical solution of these PIDEs and illustrate our results with an application to electricity markets, where time-inhomogeneous pure jump Markov processes appear in a natural manner. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1206.5393&r=ene |
| By: | Palzer, Andreas (Fraunhofer Institute for Solar Energy Systems ISE); Westner, Günther (E.ON Energy Projects GmbH); Madlener, Reinhard (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)) |
| Abstract: | In this paper we design and evaluate eight different strategies for hedging commodity price risks of industrial cogeneration plants. Price developments are parameterized based on EEX data from 2008-2011. The probability distributions derived are used to determine the value-at-risk (VaR) of the individual strategies, which are in a final step combined in a mean-variance portfolio analysis for determining the most efficient hedging strategy. We find that the strate-gy adopted can have a marked influence on the remaining price risk. Quarter futures are found to be particularly well suited for reducing market price risk. In contrast, spot trading of CO2 certificates is found to be preferable compared to forward market trading. Finally, portfolio optimization shows that a mix of various hedging strategies can further improve the profita-bility of a heat-based cogeneration plant. |
| Keywords: | Commodity price risk; Cogeneration; Hedging; mean-variance portfolio optimization |
| JEL: | D22 D81 G11 G32 Q48 |
| Date: | 2012–03 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2012_002&r=ene |
| By: | Ashley, S.F.; Fenner, R.A.; Nuttall, W.J.; Parks |
| Abstract: | The potential for countries which currently have a nominal nuclear energy infrastructure to adopt thorium-uranium-fuelled nuclear energy systems, using a once-through “open” nuclear fuel cycle, has been presented by the International Atomic Energy Agency. This paper highlights Generation III and III+ nuclear energy technologies that could potentially adopt an open thorium-uranium fuel cycle and qualitatively highlights the main differences between the open thorium-uranium and open uranium fuel cycles. Furthermore, 28 indicators (and corresponding metrics) have been identified that could elucidate the advantages and disadvantages of nuclear energy systems which utilise thorium-uranium fuels in an open cycle. Such systems will be compared to an AREVA EPR operating with a once-through uranium fuel cycle. The indicators determined in this work have been drawn by grouping 270 indicators from eight previous studies of indicators associated with holistic and specific appraisals of the various life-cycle stages associated with the nuclear fuel cycle. The 28 indicators cover technoeconomic, environmental, waste, social, and proliferation-resistance themes and can be determined quantitatively, either by explicit determination or from an appropriate sensitivity analysis. |
| Keywords: | Nuclear, Thorium, Sustainable Development, Indicators |
| JEL: | O13 Q01 Q42 Q55 Q56 |
| Date: | 2012–06–28 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camdae:1233&r=ene |
| By: | Kessides, Ioannis N. |
| Abstract: | Skeptics point out, with some justification, that the nuclear industry's prospects were dimmed by escalating costs long before Fukushima. If history is any guide, one direct consequence of the calamity in Japan will be more stringent safety requirements and regulatory delays that will inevitably increase the costs of nuclear power and further undermine its economic viability. For nuclear power to play a major role in meeting the future global energy needs and mitigating the threat of climate change, the hazards of another Fukushima and the construction delays and costs escalation that have plagued the industry will have to be substantially reduced. One promising direction for nuclear development might be to downsize reactors from the gigawatt scale to less-complex smaller units that are more affordable. Small modular reactors (SMRs) are scalable nuclear power plant designs that promise to reduce investment risks through incremental capacity expansion; become more standardized and reduce costs through accelerated learning effects; and address concerns about catastrophic events, since they contain substantially smaller radioactive inventory. Given their lower capital requirements and small size, which makes them suitable for small electric grids, SMRs can more effectively address the energy needs of small developing countries. |
| Keywords: | Energy Production and Transportation,Water and Industry,Engineering,Climate Change Mitigation and Green House Gases,Environment and Energy Efficiency |
| Date: | 2012–06–01 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:6112&r=ene |
| By: | Petter Osmundsen, Knut Einar Rosendahl and Terje Skjerpen (Statistics Norway) |
| Abstract: | We examine the largest cost component in offshore development projects, drilling rates, which have been high in recent years. To our knowledge, rig rates have not been analysed empirically before in the economic literature. Using econometric analysis, we examine the effects of gas and oil prices, rig capacity utilisation, contract length and lead time, and rig-specific characteristics on Gulf of Mexico rig rates. Having access to a unique data set containing contract information, we are able to estimate how contract parameters crucial to the relative bargaining power between rig owners and oil and gas companies affects rig rates. Our econometric framework is a single equation random effects model, in which the systematic part of the equation is non-linear in the parameters. Such a model belongs to the class of non-linear mixed models, which has been heavily utilised in the biological sciences. |
| Keywords: | Rig contracts; GoM rig rates; Panel data |
| JEL: | C18 C23 L14 L71 Q4 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:696&r=ene |
| By: | Marko Melolinna (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.) |
| Abstract: | This paper studies oil market and other macroeconomic shocks in a structural vector au- toregression with sign restrictions. It introduces a new indicator for oil demand, and uniquely, performs a sign restriction set-up with a penalty function approach in an oil market vector au- toregression. The model also allows for macroeconomic shocks in the US. The results underline the importance of the source of an oil shock for its macroeconomic consequences. Oil supply shocks have been less relevant in driving real oil prices, and had less of an e¤ect on US ination than demand shocks. Overall, the e¤ects of oil shocks on US real activity have been relatively limited, as also highlighted by a counterfactual experiment of recent oil market developments. JEL Classification: C01, C32, E32 |
| Keywords: | oil demand shocks, oil supply shocks, business cycle, Bayesian econometrics |
| Date: | 2012–05 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20121432&r=ene |
| By: | Sascha Buetzer (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Maurizio Michael Habib (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.); Livio Stracca (European Central Bank, Kaiserstrasse 29, D-60311 Frankfurt am Main, Germany.) |
| Abstract: | Do oil shocks matter for exchange rates? This paper addresses this question based on data on real and nominal exchange rates as well as an exchange market pressure index for 44 advanced and emerging countries. We identify three structural shocks (oil supply, global demand, and oil specific demand) which raise the real oil price and analyse their effect on individual exchange rates. Contrary to the predictions of the theoretical literature, we find no evidence that exchange rates of oil exporters systematically appreciate against those of oil importers after shocks raising the real oil price. However, oil exporters experience significant appreciation pressures following an oil demand shock, which they tend to counter by accumulating foreign exchange reserves. Results for general commodity exporters are similar, showing minor differences compared with oil exporters. JEL Classification: F31, Q43. |
| Keywords: | Oil, structural VAR, exchange rate, exchange market pressure, global imbalances. |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20121442&r=ene |
| By: | Shaun K. Roache |
| Abstract: | Shocks to aggregate activity in China have a significant and persistent short-run impact on the price of oil and some base metals. In contrast, shocks to apparent commodity-specific consumption (in part reflecting inventory demand) have no effect on commodity prices. China’s impact on world commodity markets is rising but, perhaps surprisingly, remains smaller than that of the United States. This is mainly due to the dynamics of real activity growth shocks in the U.S, which tend to be more persistent and have larger effects on the rest of the world. |
| Keywords: | China , Commodity markets , Demand , External shocks , Spillovers , Supply , |
| Date: | 2012–05–08 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfwpa:12/115&r=ene |
| By: | Serra, Teresa |
| Abstract: | In this article, a review of the price transmission literature addressing volatility interactions between biofuel and food and fossil fuel markets is presented. The data used, the modeling techniques and the main findings of this literature are discussed. Future extensions of this flourishing research area are proposed and late developments introduced. |
| Keywords: | time series, biofuels, volatility, literature review, Agricultural and Food Policy, Demand and Price Analysis, Resource /Energy Economics and Policy, q11, c32, q42, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126057&r=ene |
| By: | Serra, Teresa; Gil, Jose M. |
| Abstract: | This article studies the capacity of biofuels to reduce motor fuel price fluctuations. For this purpose, we study dependence between crude oil and biodiesel blend prices in Spain. Copula models are used for this purpose. Results suggest that the practice of blending biodiesel with diesel can protect consumers against extreme crude oil price increases. |
| Keywords: | biodiesel, crude oil, dependency analysis, copula models, Agricultural and Food Policy, Demand and Price Analysis, c32, q11, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:126056&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech12012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech22012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech32012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech42012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech52012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech62012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech72012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech82012&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Thermoeconomics, A Thermodynamic Approach to Economics (Third Edition), which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 covers historical research on the disciplines, the structural comparisons between of the ideal gas equation and the quantity theory. Chapter 2 concerns a general stock model that can be adapted to represent those of money, labour and economic output. Chapter 3 deals with economic representations of the first and second laws of thermodynamics, work done, internal value and entropic value, reversibility, entropy, particular economic processes and utility. Chapter 4 concerns a thermodynamic representation of production processes, reaction kinetics entropy and maximisation and the cycle. Chapter 5 constructs a thermodynamic money system, using historical data of the UK and USA economies to provide empirical analysis. Particular aspects covered include elastic relationships, entropy, and interest rates. Chapter 6 describes aspect of labour and unemployment. Chapter 7 describes the principles of investment and economic entropy, including DCF, annuities and bonds. Chapter 8 sets out analyses of world energy and climate change to illustrate empirically some of the principles covered by the book.Chapter 9 is a discussion of thermoeconomics and sustainability. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:tech92012&r=ene |
| By: | John Feddersen |
| Abstract: | The literature on carbon leakage has not yet benefitted from many of the insights of the ‘New Economic Geography’ (NEG). Most studies assume both an absence of agglomeration forces and that factors do not move inter-regionally. This paper develops a 2-region NEG model with factor mobility to study the impact of regionally-differentiated environmental regulation on the location of polluting firms. There are three main results: (i) trade liberalisation can reduce firms’ incentives to relocate in response to a regulatory disadvantage; this arises because trade liberalisation increases the agglomeration forces attracting firms to a given location, and may explain why the pollution haven hypothesis (PHH), which is a common prediction of standard trade models of environmental regulation, has been so difficult to detect empirically; (ii) unilaterally tightening environmental regulation by one region may increase global pollution; and (iii) if industry is dispersed between regions, individual firms respond to higher (lower) relative domestic pollution taxes by polluting more (less). |
| Keywords: | Carbon leakage, Environmental regulation, International environmental agreements, International trade, Pollution haven |
| JEL: | F18 Q56 |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:613&r=ene |
| By: | Fischer, Carolyn (Resources for the Future); Salant, Stephen (Resources for the Future) |
| Abstract: | Efforts to limit cumulative emissions over the next century may be partially thwarted by the responses of fossil fuel suppliers. Current price-cost margins for major reserves are ample, leaving scope for significant price reductions if climate policies reduce demand for fossil fuels through conservation or substitution to clean alternatives. Most models simulating the consequences of climate policies completely disregard these supply responses. As for theoretical models, under standard assumptions they predict such strong supplier responses that climate policies may have no effect on cumulative emissions and may even leave society worse off, suffering damages from global warming sooner and with less time to adapt (the “green paradox”).We contribute to this literature by developing a richer theoretical model that takes account of the different extraction costs and emissons rates of different fossil reserves. We use this model to compare the qualitative effects of four policy options—accelerating cost reductions in the clean backstop technologies, taxing emissions, improving energy efficiency, and a clean fuel blend mandate. We also discuss the consequences of mandating carbon capture and sequestration. All policies can reduce cumulative emissions, but the backstop policy accelerates emissions while conservation policies (energy efficiency or blend mandates) delay emissions. We then calibrate the model using data on costs, reserves, and emissions factors for five major categories of oil. Using this calibrated model, we estimate the interemporal leakage rate—the percentage error in cumulative emissions reductions that would arise if no account is taken of the supply responses of oil producers. We find that conservation policies can have higher intertemporal leakage rates and backstop policies can have lower leakage than an emissions tax. Leakage rates generally decline as the policies become more stringent. |
| Keywords: | green paradox, climate change, exhaustible resources |
| JEL: | Q3 Q4 Q5 |
| Date: | 2012–04–23 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-12-16&r=ene |
| By: | Christoph Böhringer (Department of Economics University of Oldenburg, Germany); Brita Bye (Statistics Norway, Oslo, Norway); Taran Fæhn (Statistics Norway, Oslo, Norway); Knut Einar Rosendahl (Statistics Norway, Oslo, Norway) |
| Abstract: | In the absence of effective world-wide cooperation to curb global warming, import tariffs on embodied carbon have been proposed as a potential supplement to unilateral emissions pricing. We consider alternative designs for such tariffs, and analyze their effects on global welfare within a multi-region, multi-sector computable general equilibrium (CGE) model of global trade and energy. Our analysis suggests that the most cost-efficient policy could be region-specific tariffs on all products, based on direct plus electricity emissions. In the end, however, the potential cost savings through carbon tariffs must be weighed against the administrative costs as well as legal issues and political considerations |
| Keywords: | carbon leakage, embodied carbon, border tariffs |
| JEL: | Q43 Q54 H2 D61 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:345&r=ene |
| By: | Christoph Böhringer (Department of Economics, University of Oldenburg); Jared C. Carbone (University of Calgary, Canada); Thomas F. Rutherford (University of Wisconsin, USA) |
| Abstract: | The cost-effectiveness of unilateral emission abatement can be seriously hampered by emission leakage. We assess three widely-discussed proposals for leakage reduction targeted at energy-intensive and trade-exposed industries: border tax adjustments, output-based allocation and industry exemptions. We find that none of these measures amounts to a “magic bullet” when both efficiency and equity criteria matter. Border tax adjustments reduce leakage and provide global cost savings but exacerbate regional inequality. Exemptions produce very little leakage reduction and run the risk of increasing efficiency cost of climate policy. Output-based allocation does no harm but also does relatively little good by our outcome measures. |
| Keywords: | Unilateral Climate Policy, Leakage, Efficiency, Equity |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:346&r=ene |
| By: | Bjart Holtsmark og Dag Einar Sommervoll (Statistics Norway) |
| Abstract: | Using a non cooperative climate policy game applied in the literature, we find that an agreement with international emissions trading leads to increased emissions and reduced efficiency. |
| Keywords: | Climate change; international environmental agreements; emissions trading; non-cooperative game theory. |
| JEL: | C7 Q2 Q4 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:ssb:dispap:693&r=ene |
| By: | Christoph Böhringer (Department of Economics, University of Oldenburg); Andreas Lange (University of Hamburg, Department of Economics, Germany); Thomas F. Rutherford (ETH Zürich, CEPE, Switzerland) |
| Abstract: | Carbon leakage provides an efficiency argument for unilateral climate policy to differentiate emission prices in favor of emission-intensive and trade-exposed sectors. At the same time, differential emission pricing can be (mis-)used as a beggar-thy-neighbor policy to exploit terms of trade. Using an optimal tax framework, we propose a method to decompose the leakage motive and the terms-of-trade motive for emission price differentiation. We employ our method for a quantitative impact assessment of unilateral climate policy based on empirical data. We find that the leakage motive yields only small efficiency gains compared to uniform emission pricing. Likewise, the terms-of-trade motive has rather limited potential for strategic burden shifting. We conclude that the simple first-best rule of uniform emission pricing remains a practical guideline for unilateral climate policy design. |
| Keywords: | optimal taxation, emission leakage, terms of trade |
| JEL: | H21 Q43 R13 D58 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:old:wpaper:347&r=ene |
| By: | Ghosh, Gaurav (E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN)); Shortle, James (Department of Agricultural Economics and Rural Sociology) |
| Abstract: | We compare two tradable permit markets in their ability to meet a safety first environmental target at least cost when some polluters have stochastic, correlated, and non-measurable emissions. In both markets, the point source permit defines the allowable level of the observed (deterministic) point source pollution load. The permit for unobservable and stochastic nonpoint source pollution cannot be defined in this way. One market bases the nonpoint permit on expected nonpoint pollution and uses a trading ratio between the two pollution types to manage stochasticity. This model follows existing point-nonpoint markets for water quality trading. The second model defines the nonpoint permit as a multi-attribute good, where the attributes inform the market about the stochasticity of the underlying pollution load. The multi-attribute permit market is demonstrated to out-perform the trading ratio market. This result is an artifact of polluters directly pricing stochasticity in the former market but not in the latter, where stochasticity is only controllable under highly restrictive conditions. |
| Keywords: | Emissions trading; Environmental policy; Market design; Nonpoint pollution; Water Quality |
| JEL: | D02 D62 D81 Q52 Q53 Q58 |
| Date: | 2012–01 |
| URL: | http://d.repec.org/n?u=RePEc:ris:fcnwpa:2012_001&r=ene |
| By: | Mehdi Fadaee (Department of Economics, University of Bologna, Italy); Luca Lambertini (Department of Economics, University of Bologna, Italy; ENCORE, University of Amsterdam, The Netherlands; The Rimini Centre for Economic Analysis, Italy) |
| Abstract: | Acquired wisdom has it that the allocation of pollution rights to firms hinders their willingness to undertake uncertain R&D projects for environmental-friendly technologies. We revisit this issue in a model where firms strategically choose whether to participate in a lottery to attain pollution permits, or instead invest in green R&D, to show that, somewhat counterintuitively, a desirable side effect of the pollution permit is in fact that of fostering environmental R&D in an admissible range of the model parameters. |
| Keywords: | environmental externalities, pollution rights, pollution-reducing innovation |
| JEL: | L13 O31 Q55 |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:43_12&r=ene |
| By: | Gurgel, Angelo Costa |
| Abstract: | The Brazilian government has announced volunteer targets to reduce greenhouse gas (GHG) emissions during the 2009 COP meeting in Copenhagen. In this paper we estimate the economic impacts from alternative policies to achieve such targets, including actions to cut emissions from deforestation and agricultural production. We employ a dynamic-recursive general equilibrium model of the world economy. The main results show that deforestation emissions in Brazil can be reduced at very low costs, but the costs of cutting emissions from agricultural and energy use may reach 2.3% loss in GDP by 2020 if sector specific carbon taxes are applied. Those costs may be reduced to 1.5% under a carbon trading scheme. The negative impacts of carbon taxes on agricultural production indirectly reduce deforestation rates. However, directly cutting emissions from deforestation is the most cost-effective option, since it does not hurt agricultural production, which still expands on lower yield and underutilized pasture and secondary forest areas. |
| Keywords: | Climate policies, Brazil, deforestation, general equilibrium, Environmental Economics and Policy, Land Economics/Use, Q54, Q58, Q15, C68, |
| Date: | 2012 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae12:125937&r=ene |
| By: | Dirk Rübbelke; Stefan Vögele |
| Abstract: | In the course of European efforts to mitigate global warming, the application of carbon dioxide capture and storage (CCS) technologies is discussed as a potential option. Some political opposition was raised – inter alia – by uncertainties about the effective cost of such technologies. Because of the cost structure of CCS power plants with high ‘flat’ investment cost and – in case of high carbon allowance prices – comparable low variable cost, the application of CCS will induce a merit-order effect causing a decline in electricity prices on the spot market. On the one hand, the reduction of electricity supply cost raises suppliers’ rents, while the decline of electricity prices augments consumers’ surpluses. These positive welfare effects tend to mitigate political opposition against CCS. On the other hand, the merit-order effect reduces electricity suppliers’ revenues as the electricity prices decline. This mitigates their scope for additional investments in CCS capacity. In this study, we focus on the influence of CCS in Germany on electricity supplier and consumer surpluses and associated impacts on the scope for investments in additional CCS capacity. By means of the applied model of electricity markets, influences on European electricity exchange and welfare levels are investigated |
| Keywords: | Carbon dioxide capture and storage (CCS), merit-order effect, redistribution of wealth |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:bcc:wpaper:2012-05&r=ene |
| By: | Amigues, Jean-Pierre; Lafforgue, Gilles; Moreaux, Michel |
| Abstract: | We determine the optimal exploitation time-paths of three types of perfect substitute energy resources: The first one is depletable and carbon-emitting (dirty coal), the second one is also depletable but carbon-free thanks to a carbon capture and storage (CCS) process (clean coal) and the last one is renewable and clean (solar energy). We assume that the atmospheric carbon stock cannot exceed some given ceiling. These optimal paths are considered along with alternative structures of the CCS cost function depending on whether the marginal sequestration cost depends on the flow of clean coal consumption or on its cumulated stock. In the later case, the marginal cost function can be either increasing in the stock thus revealing a scarcity effect on the storage capacity of carbon emissions, or decreasing in order to take into account some learning process. We show among others the following results: Under a stockdependent CCS cost function, the clean coal exploitation must begin at the earliest when the carbon cap is reached while it must begin before under a flow-dependent cost function. Under stock-dependent cost function with a dominant learning effect, the energy price path can evolve non-monotonically over time. When the solar cost is low enough, this last case can give rise to an unusual sequence of energy consumption along which the solar energy consumption is interrupted for some time and replaced by the clean coal exploitation. Last, the scarcity effect implies a carbon tax trajectory which is also unusual in this kind of ceiling models, its increasing part been extended for some time during the period at the ceiling. |
| Keywords: | Carbon capture and storage; Energy substitution; Learning effect; Scarcity effect; Carbon stabilization cap. |
| JEL: | Q32 Q42 Q54 Q55 Q58 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:ide:wpaper:26019&r=ene |
| By: | Amigues, Jean-Pierre; Lafforgue, Gilles; Moreaux, Michel |
| Abstract: | We determine the optimal exploitation time-paths of three types of perfect substitute energy resources: The first one is depletable and carbon-emitting (dirty coal), the second one is also depletable but carbon-free thanks to a carbon capture and storage (CCS) process (clean coal) and the last one is renewable and clean (solar energy). We assume that the atmospheric carbon stock cannot exceed some given ceiling. These optimal paths are considered along with alternative structures of the CCS cost function depending on whether the marginal sequestration cost depends on the flow of clean coal consumption or on its cumulated stock. In the later case, the marginal cost function can be either increasing in the stock thus revealing a scarcity effect on the storage capacity of carbon emissions, or decreasing in order to take into account some learning process. We show among others the following results: Under a stockdependent CCS cost function, the clean coal exploitation must begin at the earliest when the carbon cap is reached while it must begin before under a flow-dependent cost function. Under stock-dependent cost function with a dominant learning effect, the energy price path can evolve non-monotonically over time. When the solar cost is low enough, this last case can give rise to an unusual sequence of energy consumption along which the solar energy consumption is interrupted for some time and replaced by the clean coal exploitation. Last, the scarcity effect implies a carbon tax trajectory which is also unusual in this kind of ceiling models, its increasing part been extended for some time during the period at the ceiling. |
| Keywords: | Carbon capture and storage; Energy substitution; Learning effect; Scarcity effect; Carbon stabilization cap. |
| JEL: | Q32 Q42 Q54 Q55 Q58 |
| Date: | 2012–04 |
| URL: | http://d.repec.org/n?u=RePEc:tse:wpaper:26012&r=ene |
| By: | Michel Damian (LEPII - Laboratoire d'Economie de la Production et de l'Intégration Internationale - CNRS : FRE2664 - Université Pierre Mendès-France - Grenoble II) |
| Abstract: | L'article soutient que l'économie du changement climatique est à repenser. La manière dont on a posé le problème et recherché des solutions (coopération internationale " par le haut ", permis CO2, taxe, prix du carbone) est présentée et discutée. Il est montré que la transition énergétique et industrielle qui se dessine témoigne d'un changement de paradigme par rapport à l'économie néoclassique de l'environnement qui a sous-tendu la politique climatique depuis la conférence de Rio en 1992. Sur le plan normatif, l'article défend l'idée que la seule taxation du CO2 envisageable est une taxe non pas Pigouvienne mais à la Marshall, c'est-à-dire une taxe dédiée, de financement, dont le montant ne pourrait être au départ que modeste. |
| Keywords: | ECONOMIE DU CHANGEMENT CLIMATIQUE ; TRANSITION ENERGETIQUE ; POLITIQUE CLIMATIQUE |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00709929&r=ene |
| By: | Pannell, David J.; Roberts, Anna M.; Park, Geoff; Alexander, Jennifer |
| Abstract: | A multidisciplinary team of researchers made efforts to influence the design and implementation of environmental policy in Australia. A focus of these efforts was the development of the Investment Framework for Environmental Resources (INFFER). In addition, the team undertook a diversity of communication activities, training, user support, and participation in committees and enquiries. Transaction costs were relevant to these efforts in a variety of ways. Environmental managers who adopted some elements of INFFER incurred higher transaction costs than they did using traditional, simpler methods for planning and prioritising. The benefits that could be generated by bearing specific transaction costs were carefully considered, and a balance was struck between the system having simplicity (and low transaction costs) and delivering valuable environmental outcomes in the long term. Transaction costs were factored into the planning and prioritisation processed developed for INFFER. For example, public and private transaction costs are accounted for in the calculation of the Benefit: Cost Ratio for each project, and in the analysis of which type of policy mechanisms would be most suitable. The researchers’ experiences highlight the importance of transaction costs and the diverse roles that they play in the processes of developing, implementing and influencing environmental policy programs. |
| Keywords: | transaction costs, policy mechanism choice, benefit: costs analysis, prioritisation, planning, Environmental Economics and Policy, Institutional and Behavioral Economics, Resource /Energy Economics and Policy, Teaching/Communication/Extension/Profession, Q50, Q57, Q58, D23, |
| Date: | 2012–06–18 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:125851&r=ene |
| By: | Mehdi Abbas (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : FRE3389 - Université Pierre Mendès-France - Grenoble II) |
| Abstract: | Cette contribution aborde les dimensions théoriques et institutionnelles du lien entre l'agenda de la lutte contre les changements climatiques et la globalisation économique entendue comme l'accroissement de l'interdépendance commerciale et de l'intégration productive. Elle interroge la thèse du soutien mutuel qui est devenue une expression centrale du droit international ayant une portée normative et prescriptive majeures en matière de coopération économique internationale. |
| Keywords: | CHANGEMENT CLIMATIQUE : COMMERCE INTERNATIONAL ; MONDIALISATION ; COOPERATION ECONOMIQUE INTERNATIONALE |
| Date: | 2012–06–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00711103&r=ene |
| By: | Patrick Criqui (LEPII - Laboratoire d'Économie de la Production et de l'Intégration Internationale - CNRS : FRE3389 - Université Pierre Mendès-France - Grenoble II); Alban Kitous (IPTS - European Joint Research Center - Commission européenne) |
| Abstract: | L'avenir du climat planétaire à long terme se jouera au cours des prochaines décennies. Alors que le développement économique s'est fondé depuis deux siècles sur le développement massif des énergies fossiles, la question majeure pour l'énergie au XXIe siècle est certainement celle de la transition vers des systèmes énergétiques bas carbone. Cela supposera des transformations profondes, voire des ruptures, dans les variables structurelles qui caractérisent le développement énergétique de chaque région du monde, en particulier l'intensité énergétique du PIB et l'intensité en carbone du mix énergétique. L'accumulation des gaz à effet de serre dans l'atmosphère et donc le climat pour les générations futures dépendra directement de la capacité de la communauté internationale à se mobiliser pour mettre en œuvre rapidement les bifurcations nécessaires. |
| Keywords: | TRANSITION ENERGETIQUE ; CHANGEMENT CLIMATIQUE ; MIX ENERGETIQUE |
| Date: | 2012–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:halshs-00709938&r=ene |
| By: | Randall S. Jones; Byungseo Yoo |
| Abstract: | Korea, which has had the highest growth rate of greenhouse gas emissions in the OECD area since 1990, adopted an ambitious Green Growth Strategy in 2009. It aims at reducing emissions by 30% by 2020 relative to a “business as usual” scenario, implying a 4% cut from the 2005 level. The Strategy also includes a Five-Year Plan with public spending of 2% of GDP per year to promote green growth. Korea is planning to establish a carbon price through a cap-and-trade emissions trading scheme. Such an approach, combined with a carbon tax in sectors not covered by the scheme, is necessary to reduce emissions in a cost-effective manner and foster innovation in green technology. In addition, each sector should face the same electricity price based on production costs to promote efficient energy use. Given market failures, the government has a role to play in green R&D, particularly for basic research, in fostering green finance and in developing renewable energy resources.<P>Concrétiser le projet d'une « croissance verte et sobre en carbone » en Corée<BR>La Corée, qui affiche le plus fort taux d’accroissement des émissions de gaz à effet de serre de la zone OCDE depuis 1990, a adopté en 2009 une ambitieuse Stratégie de croissance verte. L’objectif est de réduire de 30 % les émissions d’ici à 2020 par rapport au scénario « au fil de l’eau », ce qui équivaut à une baisse de 4 % par rapport à leur niveau de 2005. La Stratégie institue également un Plan quinquennal qui prévoit les dépenses publiques correspondant à 2 % du PIB par an pour promouvoir la croissance verte. La Corée envisage de créer un prix du carbone grâce à la mise en place d’un système de plafonnement et d'échange de permis d'émissions. Une telle approche conjuguée à l’application d’une taxe carbone dans les secteurs non concernés par ce système est nécessaire pour abaisser les émissions de manière efficace et économe et stimuler l’innovation dans les technologies vertes. En outre, chaque secteur devrait se voir appliquer le même prix de l’électricité, fondé sur les coûts de production, afin de promouvoir une utilisation rationnelle de l’énergie. Compte tenu des défaillances du marché, les pouvoirs publics ont un rôle à jouer dans la R-D verte, notamment dans le domaine de la recherche fondamentale, dans la promotion de la finance verte et dans le développement des énergies renouvelables. |
| Keywords: | Korea, renewable energy, R&D, climate change, energy efficiency, energy subsidies, carbon tax, greenhouse gas emissions, environmental taxes, green growth, Korean economy, emissions trading system, green certificates, National Strategy for Green Growth, electricity pricing, Five-Year Plan, Corée, changement climatique, émissions de gaz à effet de serre, énergies renouvelables, efficacité énergétique, croissance verte, économie coréenne, système d'échange de permis d'émission, taxes environmentales, subventions d'énergie, R-D, certificats verts, Stratégie nationale pour la croissance verte, taxe carbone, tarification de l’électricité, Plan quinquennal |
| JEL: | Q28 Q48 Q54 Q56 Q58 |
| Date: | 2012–06–05 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:964-en&r=ene |