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on Energy Economics |
| By: | Hunt Allcott; Cass R. Sunstein |
| Abstract: | This paper offers a framework for regulating internalities. Using a simple economic model, we provide four principles for designing and evaluating behaviorally-motivated policy. We then outline rules for determining which contexts reliably reflect true preferences and discuss empirical strategies for measuring internalities. As a case study, we focus on energy efficiency policy, including Corporate Average Fuel Economy (CAFE) standards and appliance and lighting energy efficiency standards. |
| JEL: | D03 D04 D10 D18 D61 D83 H21 K0 K20 L51 L94 Q48 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21187&r=ene |
| By: | MATSUMOTO Shigeru; OMATA Yukiko |
| Abstract: | Typical consumers underestimate the benefits of future energy savings and underinvest in energy efficiency relative to the socially optimal level of energy efficiency. This phenomenon is called the energy-efficiency gap and has been widely studied in many developed countries. However, research on the energy-efficiency gap in developing countries remains very scant. In this study, we use sales data of air conditioners (ACs) in the Vietnamese market and conduct hedonic price analysis to examine how consumers in Vietnam value the energy efficiency of ACs. We find that the implicit discount rate in Vietnam's AC market exceeds 11.7%. This high implicit discount rate suggests that consumers in developing countries place much lower value on energy efficiency than consumers in developed countries, despite the fact that purchasing energy-efficient appliances offers the opportunity to save substantial amounts. Financial and technical support from developed countries are necessary to promote energy-efficient appliances in developing countries. |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:eti:dpaper:15063&r=ene |
| By: | Nadia Ameli; Nicola Brandt |
| Abstract: | Energy efficiency and renewable energy technologies provide important opportunities to reduce greenhouse gas emissions. However, households fail to take up many clean energy investments that are cost-effective. This paper reviews different explanations for apparent underinvestment in energy efficiency that have been put forward in the literature. While investments in renewable energy technologies are typically not (yet) profitable, many of its drivers are similar to those that determine energy efficiency investments, and the two types of investment are therefore assessed jointly. The paper also provides new evidence regarding barriers to investment in energy efficiency based on the OECD Survey on Household Environmental Behaviour and Attitudes. Finally, policy solutions that would help overcome some of these barriers are also presented.<P>Quels sont les obstacles à l'investissement des ménages dans la rénovation énergétique et les énergies renouvelables ?<BR>La rénovation énergétique et les énergies renouvelables constituent un important moyen de réduire les émissions de gaz à effet de serre. Or, les ménages n’engagent pas un grand nombre d’investissements dans les énergies propres qui seraient rentables. Le présent document passe en revue différents arguments présentés dans les travaux publiés pour expliquer le sous-investissement constaté dans l’efficacité énergétique. Même si les investissements dans les technologies d'énergie renouvelable ne sont, généralement pas (encore) rentables, bon nombre de ses pilotes sont similaires à celles qui déterminent les investissements d'efficacité énergétique, et les deux types d'investissement sont donc évalués conjointement. Il présente aussi de nouveaux éléments sur les obstacles à l’investissement dans ce domaine, provenant de l’enquête de l'OCDE sur la politique de l’environnement et le comportement individuel. Enfin, il expose des solutions que les pouvoirs publics pourraient mettre en oeuvre pour aider à surmonter certains de ces obstacles. |
| Keywords: | market failure, behavioural failures, energy efficiency gap, défaillances de marché, défaillances comportementales |
| JEL: | Q38 Q41 |
| Date: | 2015–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1222-en&r=ene |
| By: | Anne Marie Brady; Bert Provan |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticar:casereport89&r=ene |
| By: | Johanna Vogel; Kurt Kratena; Kathrin Hranyai |
| Abstract: | This paper is concerned with measuring and influencing the direction of technological change. First, it provides a comprehensive assessment of the factor bias of technological change using panel data from the World Input-Output Database (WIOD) for 25 EU countries from 1995 to 2009. We measure the bias with respect to the inputs capital, energy, non-energy materials and three types of labour (low-, medium- and high-skilled). For this purpose, the factor cost share approach based on the duality of production theory is applied. Estimating the system of cost share equations derived from a translog cost function, we find that technological change was low- and medium-skilled labour-saving, high-skilled labour-using, and energy- and materials-using. Second, the paper addresses the question how technological change could be redirected towards saving more energy and less labour. Patent applications in energy- and labour-saving technology fields are used to model the direction of technological change. We construct stocks of patents in these fields and integrate them into the system of cost share equations as proxies for the level of technology. Upon finding that they were indeed energy and labour saving over our sample period, we regress them on policy variables to identify instruments for shifting the bias away from saving labour towards saving energy. We conclude that one way to achieve this, at least partly, would be an increase in the energy tax rate coupled with a matching reduction in the social security contributions paid by employers for low-skilled workers. |
| Keywords: | Factor bias of technological change, translog cost function, induced innovation, environmental innovation, ICT, robotics, count data models for panel data, Europe, WIOD |
| JEL: | O33 O31 D24 Q55 Q58 C33 C35 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:feu:wfewop:y:2015:m:5:d:0:i:98&r=ene |
| By: | Pernille Parmer (Department of Economics, Norwegian University of Science and Technology) |
| Abstract: | Many Norwegian local governments are affected by hydropower production. A law passed in 1917 mandates that hydropower plants sell up to 10 percent of their power basis to local governments affected by the production. Historically, this concession power was meant to ensure the small rural local governments supply of electricity, in competition of the larger cities. Today, many local governments resell their concession power when prices are high and generate large revenues. However, the actual transferred concession power is restricted to general electricity consumption in the community. As a result, local governments with a positive gap between potential concession power and general electricity consumption have reduced incentives to save electricity. In other words, the concession power system has adverse effects on incentives for energy eciency. In this study, a simple two-period model to study energy efficiency is developed, and the model's predictions are supported by empirical findings. The results underline how misspecifed and outdated laws can reduce incentives for energy economizing projects. |
| Keywords: | Electricity comsumption, energy efficiency incentives, public sector, hydropower, laws |
| JEL: | D78 H11 H27 H71 Q2 Q4 Q5 |
| Date: | 2014–12–10 |
| URL: | http://d.repec.org/n?u=RePEc:nst:samfok:16014&r=ene |
| By: | Raam Dheep. G; Sreekumar. A |
| Abstract: | The progression of energy supply always possesses some difficulty as the supply does not commensurate with demand. The demand for energy remains higher than production which always leads to imprudent exploitation of precious natural resources, which is available in limited quantities on the mother earth. Energy from non-renewable resources leads to dwindling of natural sources and global warming, whereas energy from renewable resources is sporadic. Solar energy is the primary energy source in renewable energy. The intermittent nature of solar energy necessitates the use of a storage medium. The storage medium stores energy when it is available in excess quantities and delivers the stored energy when the supply is inadequate. Thermal energy storage system plays a major role to achieve high efficiency and uninterrupted operation for solar thermal energy applications such as space heating, solar drying, solar water heating, and industrial process heat and electricity generation. In this article, an attempt has been made to focus on the scope of thermal energy storage system and different techniques of storing solar thermal energy. Scientific investigation was carried out to determine the suitability of an organic phase change material in solar thermal energy storage. This article is expected to be an aid to the scientific society to explore current trends, opportunities and advancement in solar thermal energy storage systems. Key words: Solar energy, Latent heat storage, Phase change materials, Thermal energy storage, Thermo-physical properties. |
| Date: | 2014–03 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2014-03-23&r=ene |
| By: | Calvo-Gonzalez,Oscar; Cunha,Barbara; Trezzi,Riccardo |
| Abstract: | In 2011 the Government of El Salvador implemented a reform to the gas subsidy that increased the welfare of households in all but the top two deciles of the income distribution. However, the reform turned out to be rather unpopular, especially among winners. This paper relies on ad hoc household surveys conducted before the implementation and in the following two and a half years to test which factors help explain the puzzle. The analysis uses probit and logit models to show that misinformation (a negativity bias by which people with limited information inferred negative consequences), mistrust of the government?s ability to implement the policy, and political priors explain most of the (un)satisfaction before implementation. Perceptions improved gradually?and significantly so?over time when the subsidy reception induced households to update their initial priors, although political biases remained significant throughout the entire period. The results suggest several implications with respect to policy reforms in cases where agents have limited information. |
| Keywords: | Economic Theory&Research,E-Business,Children and Youth,Technology Industry,Taxation&Subsidies |
| Date: | 2015–05–15 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7265&r=ene |
| By: | Jeremy West; Mark Hoekstra; Jonathan Meer; Steven L. Puller |
| Abstract: | A major concern with addressing the negative externalities of gasoline consumption by regulating fuel economy, rather than increasing fuel taxes, is that households respond by driving more. This paper exploits a discrete threshold in the eligibility for Cash for Clunkers to show that fuel economy restrictions lead households to purchase vehicles that have lower cost-per-mile, but are also smaller and lower-performance. Whereas the former effect can increase driving, the latter effect can reduce it. Results indicate these households do not drive more, suggesting that behavioral responses do not necessarily undermine the effectiveness of fuel economy restrictions at reducing gasoline consumption. |
| JEL: | L91 Q41 Q48 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21194&r=ene |
| By: | Philippe Quirion (CNRS and CIRED) |
| Abstract: | While most developed and emergent countries support renewable energies in the power sector, they do so in a different manner. The three main existing support systems are feed-in-tariffs, feed-in-premiums and tradable renewable quotas. We provide a survey of the literature which compares these support systems. We conclude that tradable renewable quotas suffer from many weaknesses compared to the other two: bad reaction to uncertainty, important risk for funders which increases investment cost, higher transaction costs. Both feed-in-tariffs and premiums have pros and cons and there is little evidence that the transition from the former to the latter, currently occurring in Germany and France, is justified. Finally, beyond the choice between tariff and premium, many concrete choices are at least as important such as the way to finance the support and the differentiation between market segments, necessary to limit the rents but potentially a source of inefficiency. |
| Keywords: | renewable energy, windpower, photovoltaic, subsidy |
| JEL: | H23 Q28 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2015.08&r=ene |
| By: | J. Scott Holladay (Department of Economics, University of Tennessee); Steven Soloway (School of Law, New York University) |
| Abstract: | We examine the environmental and policy impacts of switching from oil-fired to natural gas-fired generation in New York City (NYC). We create an hourly panel of the fuel use of NYC’s generators and use a semi-parametric approach to identify the fuel price spread that induces the switch from oil to gas. We find that NYC’s pollution emissions decrease significantly after switching to natural gas. Around two-thirds of these emission reductions come from reduced emission intensity within plants, while the remaining third comes from less intense dispatch of oil fired generators. To illustrate the policy impact, we simulate the introduction of a real time pricing (RTP) program in NYC. The results suggest that the environmental benefits of the RTP decreased by nearly 30% due largely to fuel switching. While we focus on RTP, these results can be used to evaluate any energy policy that has a heterogeneous impact across time or the demand profile. |
| JEL: | Q4 Q5 L9 |
| Date: | 2015–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:ten:wpaper:2015-05&r=ene |
| By: | Montag, Josef |
| Abstract: | The volume of pollution produced by an automobile is determined by driver's behavior along three margins: (i) vehicle selection, (ii) kilometers driven, and (iii) on-road fuel economy. The first two margins have been studied extensively, however the third has received scant attention. How significant is this 'intensive margin'? What would be the optimal policies when it is taken into account? The paper develops and analyzes a simple model of the technical and behavioral mechanisms that determine the volume emissions produced by a car. The results show that an optimal fuel tax would provide drivers with appropriate incentives along all three margins and that only public information is needed for a fuel tax to be set optimally. In contrast, an optimal distance tax would require private information. Lastly, relative to the optimal fuel tax, a simple uniform fuel tax is shown to be progressive. Thus, being already deployed worldwide, a uniform fuel tax is an attractive second-best policy. These findings should be accounted for when designing new mechanisms to alleviate motor vehicle pollution. |
| Keywords: | automobile externalities, car pollution, CO2 emissions, fuel economy, driving behavior, distance tax, fuel tax. |
| JEL: | H23 Q58 R41 R48 |
| Date: | 2015–05–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64524&r=ene |
| By: | Ariane Labat (DG CLIMA, European Commission); Alban Kitous (JRC IPTS, European Commission); Miles Perry (DG CLIMA, European Commission); Bert Saveyn (JRC IPTS, European Commission; JRC IPTS , European Commission); Toon Vandyck (JRC IPTS , European Commission); Zoi Vrontisi (JRC IPTS , European Commission) |
| Abstract: | This report presents the modelling work quoted in the EC communication "The Paris Protocol - a blueprint for tackling global climate change beyond 2020” in the EU’s Energy Union package. It examines the effects of a Baseline scenario where current trends continue beyond 2020, and of a Global Mitigation scenario in line with keeping global warming below 2°C. The analysis uses the POLES and GEM-E3 models in a framework where economic welfare is maximised while tackling climate change. In the Baseline, emissions trigger +3.5°C global warming. In the Global Mitigation scenario, all regions realise domestic emission cuts to stay below 2°C, with various profiles in 2020-2050 depending on their national characteristics. A significant transformation of the energy systems and non-energy measures enable regions at all levels of income to move to a low-emission growth pathway. Sectors linked (directly or indirectly) to carbon-intensive processes adjust their investments to be competitive in a low-emission environment. A significant number of regions draw economic benefits from shifting their expenditures on fossil energy imports to investments. GDP growth rates are marginally affected in most regions by global efforts to reduce emissions. Crucially, high growth rates are maintained in fast-growing low-income regions. Economic costs are reduced further when countries use emission permit auction revenues for other tax reductions. Delaying actions to stay below 2°C add large economic costs. |
| Keywords: | GHG emissions, climate mitigation, international negotiations, COP21, IPCC, UNFCCC, modelling, GEM-E3, POLES, Road to Paris |
| JEL: | C68 D58 Q40 Q54 |
| Date: | 2015–04 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc95892&r=ene |
| By: | Anders Skonhoft (Department of Economics, Norwegian University of Science and Technology) |
| Abstract: | As a result of generous policies to increase the use of electric vehicles (EVs), the sales of EVs in Norway are rapidly increasing. This in sharp contrast to most other rich countries without such generous policies. Due to the subsidies, driving an EV implies very low costs to the owner on the margin, probably leading to more driving at the expense of public transport and cycling. Moreover, because most EVs’ driving range is low, the policy gives households incentives to purchase a second car, again stimulating the use of private cars instead of public transport and cycling. These effects are analysed in light of possible greenhouse gas (GHG) emission benefits as well as other possible benefits of utilizing EVs versus conventional cars. We discuss whether the EV policy can be justified, as well as whether this policy should be implemented by other countries. |
| Date: | 2014–06–02 |
| URL: | http://d.repec.org/n?u=RePEc:nst:samfok:15714&r=ene |
| By: | Molyneaux, Lynette; Brown, Colin; Foster, John; Wagner, Liam |
| Abstract: | Measuring energy security or resilience in energy is, in the main, confined to indicators which are used for comparative purposes or to show trends rather than provide empirical evidence of resilience to unpredicted crises. In this paper, the electricity systems of the individual states within the United States of America are analysed for their response to the 1973-1982 and the 2003-2012 oil price shocks. Empirical evidence is sought for elements which are present in systems that experience reduced volatility from the energy shocks in the form of lower prices. Spare capacity is found to be a reliable indicator of reduced prices through both periods whilst renewable energy is found to be an indicator of reduced prices especially in 1973-1982. |
| Keywords: | Resilience metrics; Energy Security; Electricity; Renewable Energy |
| JEL: | Q40 Q48 |
| Date: | 2015–05–25 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64568&r=ene |
| By: | James A. Robinson; Ragnar Torvik; Thierry Verdier |
| Abstract: | We develop a model of the political consequences of public income volatility. As is standard, political incentives create inefficient policies, but we show that making income uncertain creates specific new effects. Future volatility reduces the benefit of being in power, making policy more efficient. Yet at the same time it also reduces the re-election probability of an incumbent and since some of the policy inefficiencies are concentrated in the future, this makes inefficient policy less costly. We show how this model can help think about the connection between volatility and economic growth and in the case where volatility comes from volatile natural resource prices, a characteristic of many developing countries, we show that volatility in itself is a source of inefficient resource extraction. |
| JEL: | D72 D78 Q2 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:21205&r=ene |
| By: | Uri Dadush |
| Abstract: | The plunge in oil prices will only stimulate global and national aggregate demand if it is passed through to consumers. However, pass-through may be limited this time because of fiscal constraints, environmental concerns, and the need to rein in wasteful and regressive energy subsidies. Oligopolies may also appropriate a disproportionate share of the rents. The best course is to maintain high oil product prices at home by reducing energy subsidies or increasing taxes while temporarily raising income transfers to households. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb-15/12&r=ene |
| By: | Roberto Iacono (Department of Economics, Norwegian University of Science and Technology) |
| Abstract: | The aim of this research is to examine the economic effects of natural resources in Basilicata, a southern region of Italy. The paper focuses on the economic effects of large-scale oil extraction that started in 1999. I proceed by systematically constructing a comparison unit for Basilicata using synthetic control techniques. The comparison unit's economic parameters capture how Basilicata's economic activities would have evolved in the absence of the oil extraction industry. The comparison between real GDP per capita in Basilicata and in its comparison unit suggest that a large amount of oil extraction, at times peaking at 50 barrels per capita per year, has no detectable effect on Basilicata's economic performance. |
| Keywords: | Natural resources, Oil Royalties, Regional Development, Synthetic Control Method, Basilicata |
| JEL: | N54 O13 Q32 R15 R58 |
| Date: | 2014–11–24 |
| URL: | http://d.repec.org/n?u=RePEc:nst:samfok:15914&r=ene |
| By: | Yves Jégourel |
| Abstract: | Cet article vise à mieux comprendre la relative inélasticité-prix de l’offre de pétrole et tente de démontrer, qu’au-delà du niveau des prix, la volatilité et la structure de marché ont une influence considérable sur la stratégie des firmes productrices tant à court terme qu’à long terme. Pour cela, différentes variables doivent être considérées : la nature du jeu stratégique entre les producteurs dans un contexte d’oligopole, la nature des chocs d’offre ou de demande jouant sur l’arbitrage production/stockage, ainsi que l’ampleur de l’incertitude à laquelle les producteurs doivent faire face lorsqu’ils s’engagent dans une stratégie d’investissement en capacité de production. |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:rpaper:pp-15/14&r=ene |
| By: | Trommetter, M. |
| Abstract: | Face aux défis environnementaux : changement climatique et érosion de la biodiversité, il ne s'agit pas nécessairement de remettre en cause le système capitaliste, mais de le réformer pour que le maintien, voire la création, de capital naturel soit créateur de valeur. Pour une organisation, la création de valeur passe aujourd'hui par un système comptable internationalement reconnu. Dans cet article, l'auteur suggère des pistes de travail pour proposer de nouvelles règles comptables, par exemple en termes d'amortissement ou d'augmentation du capital, qui permettent de mieux intégrer les questions de biodiversité dans la stratégie des organisations. |
| Keywords: | BIODIVERSITE;RESSOURCE NATURELLE;COMPTABILITE;REGLE COMPTABLE;STRATEGIE DES ORGANISATIONS |
| JEL: | M14 M41 Q20 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:gbl:wpaper:2015-08&r=ene |
| By: | Mario Holzner (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | Summary Kosovo growth dynamics are encouraging but the level of economic activity is very low. Mass unemployment hints at macro-imbalances. Net transfers from migrants are pivotal for covering the huge trade balance deficit, as manufacturing exports are almost non-existent. Wages are low but increasing well ahead of productivity. The lack of an exchange rate policy is a substantial impediment. Transport infrastructure is of average, weak Balkan quality and the energy infrastructure is dismal, even for Balkan standards. The good news is that fiscal space is abundant and overall external indebtedness low as well. Apart from various institutional reforms, conventional policy recommendations comprise mostly supply-side measures that are effective in the medium to long run. These are similar to some of the following actions suggested. Export capacities should be increased via FDI support and the solution of the Trepca mine status. An improvement in market access to neighbouring countries and the EU is of utmost importance. Modern cross-border transport (especially rail) and energy infrastructure should be upgraded. The planned new coal-fired electricity plant and the refurbishment of the old blocks together with a powerful air pollution filter system are of crucial importance. Energy diversification via the redevelopment of the gas network and the improvement of power lines is another goal. Secondary education, specifically vocational training including an apprenticeship system, should be developed. A set of un-conventional policy recommendations for the short to medium run has the potential to more quickly increase aggregate demand and improve social conditions. Circular migration flows and return-migration should be facilitated and incentive schemes for remittances to go into business activities should be developed. Given the present current account constrained growth model of Kosovo, tax increases should target those with the highest income elasticity of demand for imports and government expenditures should involve as few imports as possible. Tax progressivity could be expanded in the corporate and personal income and real estate taxes. Additional luxury taxes on high-end import goods should be applied. A nationwide municipality housing project would solve the housing shortage and employ low-skilled with a comparatively low income elasticity of demand for imports. Moreover, local building materials such as cement and bricks could be used. Area-wide public transport should also have the goal to offer jobs to the less skilled as well as to substitute widespread individual car imports. A network of vocational training centres, health care centres, cultural and sports facilities could support local production as well as human capital and job creation. A comprehensive incomes policy with a centralised wage bargaining system needs to keep the average wage level on a longer-term productivity (cum inflation) growth path. |
| Keywords: | economic growth, competitiveness, industrialisation, infrastructure, economic policy, Kosovo |
| JEL: | F43 O11 O14 O18 O20 |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:wii:pnotes:pn:15&r=ene |
| By: | Bassam AbuAl-Foul |
| Abstract: | The purpose of this research is to investigate the causal relation between energy use and economic growth in one of the MENA countries, Jordan using annual data over the period 1975-2007. The methodology used in this study follows Toda and Yamamoto (1995) procedure in order to test the Granger causality between economic growth and energy use. The empirical results reveal that economic growth Granger causes energy use in Jordan. Thus, these findings lend support to the hypothesis that economic growth positively affects energy use therefore energy conservation policy may not slow the growth in the economy. |
| Keywords: | Energy use, Economic growth, Causality, Jordan |
| URL: | http://d.repec.org/n?u=RePEc:sha:ecowps:05-05/2015&r=ene |
| By: | Phiri, Andrew; Bothwell, Nyoni |
| Abstract: | This research study contributes to the ever-expanding literature by examining multivariate cointegration and causality relationships between electricity consumption, economic growth and other growth determinants for quarterly South African data collected between 1994/Q1 – 2014/Q4. The motivation behind this current research case study becomes apparent when taking into consideration that no previous studies have gone further than bivariate and trivariate analysis in investigating the electricity-growth nexus in South Africa. In conducting our empirical investigation, our obtained empirical results are two-fold in nature. Firstly, we find significant multivariate long-run cointegration relationships between economic growth, electricity consumption and other growth determinants. Secondly, our empirical analysis offers support in favour of the neutrality hypothesis, that is, the notion of no causal effects existing between electricity consumption and economic growth in the long-run. However, we find that exports directly cause electricity consumption whereas economic growth, domestic investment and employment levels causally flow to exports. |
| Keywords: | Electricity consumption; Economic growth; Investment; Inflation; Employment; Exports; Co-integration; Granger causality; South Africa |
| JEL: | C22 C32 Q43 |
| Date: | 2015–05–20 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64489&r=ene |
| By: | Ott, Ingrid; Soretz, Susanne |
| Abstract: | We analyse the interdependence between green attitude and equilibrium development of environmental quality in an endogenous growth model. Individuals take only part of their impact on pollution into account, hence there is a negative externality of capital accumulation on environmental quality. Increasing wealth or increasing pollution enhance green attitude and reduce the externality, because individuals care more about the environment if their income is higher or if pollution is more obvious. The time path of pollution as well as the evolution of equilibrium growth are shown to depend crucially on the determinants of green attitude. If green attitude improves with increasing wealth, e.g. as a consequence of an increase in environmental education, the economy converges to the sustainable growth path and in the long run, also the optimal level of environmental quality is realized. In contrast, pollution remains at a suboptimally high level if individual attitude towards the environment is influenced by pollution itself, that means, if individuals care the more about environmental issues the worse environmental quality. |
| Keywords: | pollution,endogenous growth,green attitude |
| JEL: | O1 O4 Q2 Q5 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kitwps:68&r=ene |
| By: | Khanna,Ashish; Singh,Daljit; Swain,Ashwini K; Narain,Mudit |
| Abstract: | Consumers? participation in regulatory decision-making in infrastructure sectors can be critical to ensure effective regulatory governance. Providing avenues for enabling consumers? voice in the regulatory process expands the information base available to regulators in their decision-making, and is critical for ensuring sustainability of policy and regulatory decisions. However, in the reform process of many developing countries? power sectors, the primary focus has been on the sector?s technical aspects, with inadequate effort to improve the experience of consumers, whether through better quality of service or by ensuring their participation in the regulatory process. This shortfall has often undermined the public?s understanding of and demand for reforms, often reflected in political reversal of key policy decisions. This paper examines the level and quality of consumer participation and protection in five states in India through a review of documents, surveys of consumers, and detailed interviews with key stakeholders. As mandated by law, all states have established standards of performance regulations and set up grievance redressal mechanisms; however, these bodies have not reached the desired level of effectiveness. Similarly, although provisions for consumer participation in regulatory proceedings exist, their adoption is often symbolic and without substantive and deliberative participation. Drawing on analysis of the Indian experience and international best practices, the paper recommends a paradigm shift in pursuing enhanced consumer satisfaction and voice in regulatory decision-making as a central objective of power reforms. |
| Keywords: | Contract Law,Social Accountability,Energy Production and Transportation,Marketing,Infrastructure Regulation |
| Date: | 2015–05–22 |
| URL: | http://d.repec.org/n?u=RePEc:wbk:wbrwps:7275&r=ene |
| By: | Joisa Dutra (Centre for Regulation, FGV, Rio de Janeiro, Brazil); Flavio M. Menezes (School of Economics, The University of Queensland) |
| Date: | 2015–05–13 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:545&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201504&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201510&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201512&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201509&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201503&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201511&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201507&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201508&r=ene |
| By: | John Bryant (Vocat International) |
| Abstract: | Chapter from a book entitled Entropy Man, which deals with the relationships between the disciplines of thermodynamics and economics. Chapter 1 illusrates how entropy impacts on the world in which we live. Chapter 2 is a short history of human development. Chapter 3 covers such concepts as the distribution of income, elasticity, the first and second laws of thermodynamics and utility. Chapter 4 explores production and consumption. Chapter 5 explores the relationship between economic entropy and money, illustrated by data of the UK and USA economies. Chapter 7 explores the relationship between economic entropy and employment. Chapter 8 sets out the key dynamics of resources.Chapter 9 illustrates trends in non-renewable resources of oil, gas, coal, nuclear power, steel, cement and Aluminium. Chapter 10 illustrates trends in renewable resources, including humankind, water, land and soil, cereals and grain, meat, fish, the greeen revolution, and renewable energy, including hydro-electric power, wind and solar energy. Chapter 11 is a summary of trends relating to climate change and economic output, and chapter 12 summarises how economics and entropy relate to a sustainable world. |
| Keywords: | Thermodynamics, economics, Le Chatelier, entropy, utility, money, equilibrium, value, energy, interest, elasticity, employment, climate change |
| JEL: | A1 C02 C68 D5 E O |
| Date: | 2015–03 |
| URL: | http://d.repec.org/n?u=RePEc:voc:wpaper:em201505&r=ene |
| By: | A. Marcel Oestreich (Department of Economics, Brock University, Canada); Ilias Tsiakas (Department of Economics and Finance, University of Guelph, Canada; The Rimini Centre for Economic Analysis, Italy) |
| Abstract: | This paper provides an empirical investigation of the effect of the European Union’s Emissions Trading Scheme on German stock returns. We find that, during the first few years of the scheme, firms that received free carbon emission allowances on average significantly outperformed firms that did not. This suggests the presence of a large and statistically significant “carbon premium”, which is mainly explained by the higher cash flows due to the free allocation of carbon emission allowances. A carbon risk factor can also explain part of the cross-sectional variation of stock returns as firms with high carbon emissions have higher exposure to carbon risk and exhibit higher expected returns. |
| Date: | 2012–08 |
| URL: | http://d.repec.org/n?u=RePEc:rim:rimwps:15-18&r=ene |
| By: | Reckova, Dominika; Irsova, Zuzana |
| Abstract: | We present a meta-regression analysis of the relation between the concentration of carbon dioxide in the atmosphere and changes in global temperature. The relation is captured by “climate sensitivity”, which measures the response to a doubling of carbon dioxide concentrations compared to pre-industrial levels. Estimates of climate sensitivity play a crucial role in evaluating the impacts of climate change and constitute one of the most important inputs into the computation of the social cost of carbon, which reflects the socially optimal value of a carbon tax. Climate sensitivity has been estimated by many researchers, but their results vary significantly. We collect 48 estimates from 16 studies and analyze the literature quantitatively. We find evidence for publication selection bias: researchers tend to report preferentially large estimates of climate sensitivity. Corrected for publication bias, the bulk of the literature is consistent with climate sensitivity lying between 1.4 and 2.3°C. |
| Keywords: | climate sensitivity; climate change; CO2; publication bias; meta-analysis |
| JEL: | C4 Q53 Q54 |
| Date: | 2015–05–18 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64455&r=ene |
| By: | Uri Dadush |
| Abstract: | Economic integration is crucial in order to achieve rapid and sustainable growth. However, instabilities in the MENA region and the recent plunge in oil prices may stifle the economic progress in some of these countries, and threaten their attempts at integration. Within this context, this note seeks to analyze the efforts of integration that MENA countries have undertaken, particularly through trade agreements; and to articulate some principles that can help guide the ongoing search for long-term solutions to the region’s growth and integration issue . |
| Date: | 2015–05 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb-15/16&r=ene |
| By: | Ma, Chunbo; Hailu, Atakelty |
| Abstract: | There is an emerging literature estimating the marginal cost of carbon mitigation in China using distance function approaches; however, empirical estimates vary widely in magnitude and variation, which undermines support for policies to curb carbon emission. Applying three commonly used distance functions to China’s provincial data from 2001 to 2010, we show that the variability can be partially explained by the difference in the input/output coverage and whether the estimated marginal abatement cost (MAC) is conditional or unconditional. We also argue that the substantial heterogeneity in abatement cost estimates could be related to an economic interpretation that radial measures reflect the short-run MACs while non-radial measures reflect the long-run MACs. Our mean short-run MAC for carbon is 20 US$ per tonne, an amount that is very close to the carbon prices observed in China’s recently launched pilot markets. |
| Keywords: | Distance Functions, Marginal Abatement Cost, Carbon, China, Environmental Economics and Policy, Resource /Energy Economics and Policy, N55, Q32, Q52, Q54, |
| Date: | 2015–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:ags:uwauwp:204973&r=ene |
| By: | Ian Gough |
| Abstract: | Since climate change threatens human wellbeing across the globe and into the future, we require a concept of wellbeing that encompasses an equivalent ambit. This paper argues that only a concept of human need can do the work required. It compares need theory with three alternative approaches. Preference satisfaction theory is criticised on the grounds of subjectivity, epistemic irrationality, endogenous and adaptive preferences, the limitlessness of wants, the absence of moral evaluation, and the non-specificity of future preferences. The happiness approach is found equally wanting. The main section shows how these deficiencies can be addressed by a coherent theory of need. Human needs are necessary preconditions to avoid serious harm, are universalisable, objective, empirically grounded, non-substitutable and satiable. They are broader than 'material' needs since a need for personal autonomy figures in all theoretical accounts. While needs are universal, need satisfiers are most often contextual and relative to institutions and cultures. The satiability and non-substitutability of needs is critical for understanding sustainability. The capability approaches of Sen and Nussbaum are compared but argued to be less fundamental. Finally, human needs provide the only concept that can ground moral obligations across global space and intergenerational time and thus operationalise 'sustainable welfare'. |
| Keywords: | Human needs, welfare theory, wellbeing, global justice, intergenerational justice, sustainability, preferences, capabilities |
| JEL: | B5 I00 P46 Z13 |
| Date: | 2014–07 |
| URL: | http://d.repec.org/n?u=RePEc:cep:sticas:case182&r=ene |
| By: | Sneha Master |
| Abstract: | Sustainability of human beings depends on very large extent on the availability of natural resources for future generation. Conservation and accountable usage of natural assets is the responsibility of present generation. Government intervention in the form of law is considered as an important tool for making effective implementation of this responsibility in today’s era. The key is not only to measure the total value of natural assets but also to measure the distribution of benefits, how much goes to each stakeholder group and the dependence of each group on natural capital especially the poor. Key words: green accounting, commerce, legal perspective |
| Date: | 2014–12 |
| URL: | http://d.repec.org/n?u=RePEc:vor:issues:2014-12-10&r=ene |
| By: | Tausch, Arno |
| Abstract: | The pressures of globalization, rising ecological footprint and shrinking biocapacity and concomitant global value change will contribute towards an increase of the importance of environmental issues in the Arab world in the coming years. Without question, already the time series data from available indices – like the KOF-Index of Globalization (2015) and Ecological Footprint Network data on ecological footprint and biocapicity - all point in the direction that in objective terms the Arab World will be confronted by a synchronous increase of these phenomena in the coming years. In addition, the newly available opinion data from the recently released World Values Survey (6) for twelve members of the Arab League (Algeria, Egypt, Iraq, Jordan, Kuwait, Lebanon, Libya, Morocco, Palestinian Territories, Qatar, Tunisia, and Yemen), containing almost 70% of the population of the countries of the Arab League show to us that membership rate environmental organizations, participation in environmental demonstrations and giving priority to protecting the environment over economic growth are already a factor in those countries. Their weight will increase in the years to come, given the general and very robust underlying tendencies. Our article analyzes the empirical relationship between rising globalization and ecological performance by establishing the global long-term, structural macro-quantitative determinants of environmental performance in the world system with cross-national data. In multiple standard OLS regression models, we test the effects of 26 standard predictor variables, including the ‘four freedoms’ of goods, capital, labor and services, whose weight will all increase in the Arab world in the coming years, on the following indicators of sustainable development avoiding net trade of ecological footprint gha per person Carbon emissions per million US dollars GDP CO2 per capita Yale/Columbia Environmental Performance Index (EPI) Global footprint per capita Happy Life Years Happy Planet Index ln (number of people per mill inhabitants 1980-2000 killed by natural disasters per year+1) Our research shows that the apprehensions of quantitative research, critical of neo-liberal globalization are fully vindicated by the significant negative environmental effects of the foreign savings rate. High foreign savings are indeed a driver of global footprint, and are a blockade against a satisfactory Happy Planet Index performance. The new international division of labor is one of the prime drivers of high CO2 per capita emissions. The penetration of economies by foreign direct investments by transnational corporations, which is the master variable of most quantitative dependency theories (MNC penetration), blocks environmental performance (EPI-Index) and several other socially important processes. Worker remittances have a significant positive effect on the Happy Planet Index, and Happy Life Years. In attempting to draw some cautious predictions for the Arab World, the article then evaluates the performance of the Arab countries in this context with our cross-national data and with our analysis of World Values Survey (6) data for the region. While the documented data for the region from the Yale/Columbia EPI Index, which is the best single-shot available global environmental quality indicator today, and the Ecological Footprint Network time series data about rising ecological footprint and shrinking biocapacity in the Arab countries clearly indicate the sharply mounting and pressing environmental policy priorities in the region, the “greening” of Arab civil societies towards a higher degree of environmental consciousness and activism already is also becoming a considerable factor. The overall publics in Qatar and Libya are in the lead, while in the other Arab countries, environmental policy issues will gain considerably in importance in the public mindset as well. Decision makers would be well advised to channel already now these future environmental debates and movements to be expected in a way compatible with the overall well-being, prosperity, democratization and stability of the region. |
| Keywords: | International Relations and International Political Economy; International Migration; Agricultural and Natural Resource Economics - General |
| JEL: | F22 F5 Q00 |
| Date: | 2015–05–21 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64511&r=ene |
| By: | Bell, Margaret; Bergantino, Angela S.; Catalano, Mario; Galatioto, Fabio |
| Abstract: | This paper illustrates the first results of an ongoing research for developing novel methods to analyse and simulate the relationship between trasport-related air pollutant concentrations and easily accessible explanatory variables. The final scope of the analysis is to integrate the new models in traditional traffic management decision-support systems for a sustainable mobility of road vehicles in urban areas. This first stage concerns the relationship between the mean hourly concentration of nitrogen dioxide and explanatory factors like traffic and weather conditions, with particular reference to the prediction of pollution peaks, defined as exceedances of normative concentration limits. Two modelling frameworks are explored: the Artificial Neural Network approach and the ARIMAX model. Furthermore, the benefit of a synergic use of both models for air quality forecasting is investigated. The analysis of findings points out that the prediction of extreme pollutant concentrations is best performed by the integration of the two models into an ensemble. The neural network is outperformed by the ARIMAX model in foreseeing peaks, but gives a more realistic representation of the relationships between concentration and wind characteristics. So, it can be exploited to direct the ARIMAX model specification. At last, the study shows that the ability at forecasting exceedances of pollution regulative limits can be enhanced by requiring traffic management actions when the predicted concentration exceeds a threshold that is pretty high but lower than the normative one. |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:sit:wpaper:15_06&r=ene |
| By: | Anne Schopp; William Acworth; Daniel Huppmann; Karsten Neuhoff |
| Abstract: | We examine under which conditions a cap-and-trade mechanism can deliver a dynamically efficient abatement pathway and contribute to a robust investment framework. For this we develop a numerical dynamic partial-equilibrium model that includes differentiated objective functions of different market participants for holding emission allowances based on their banking strategy. If the surplus of allowances is large, as currently observed in the European Union Emissions Trading System, the equilibrium market outcome can deviate from an efficient abatement pathway and performance of the policy is reduced against a set of key criteria (dynamic efficiency, price credibility, price consistency, and robustness to shocks). The model is applied to assess design options of quantity and price based market stability reserves as discussed in Europe. Both price and quantity based mechanisms can improve the performance of the EU ETS against key criteria. |
| Keywords: | Computational Model, Emissions trading, Environmental Regulation, Market stability reserve |
| JEL: | D84 G18 Q48 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:diw:diwwpp:dp1483&r=ene |
| By: | Louis-Philippe Beland; Vincent Boucher |
| Abstract: | This paper estimates the causal impact of party affiliation (Republican or Democrat) of U.S. governors on pollution. Using a regression discontinuity design, gubernatorial election data, and air quality data from U.S. Environmental Protection Agency (EPA), we find that pollution is lower under Democratic governors. We identify that this is mostly due to environmental policies enacted by Democratic governors. |
| Keywords: | Political Parties, Pollution, Air Quality, Regression Discontinuity |
| JEL: | Q53 Q58 D72 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:1513&r=ene |
| By: | Halkos, George; Skouloudis, Antonis |
| Abstract: | An increasing number of large corporations around the world engage in accounting for and reporting on their plans and measures towards climate change, as part of their environmental responsibility agenda. Using a disclosure index, this study investigates the status of the disclosure practices of the top 100 companies operating in Greece with respect to the pivotal issue of climate change. Determinants which drive Greek companies to publicly disclose such information are examined while overlapping perspectives for the Greek case are outlined. The analysis suggests that only a small group of leading Greek companies appears to endorse a climate change discourse as an instrument of empowering stakeholders’ decision-making. Most other corporations still tend to disregard disclosure practices of their actions towards this global issue. |
| Keywords: | Climate change; corporate disclosure; corporate social responsibility; content analysis; Greece. |
| JEL: | F55 L25 Q50 Q54 Q58 Q59 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64566&r=ene |
| By: | Greaves, Gerry |
| Abstract: | Climate-economy integrated assessment models are often used to assess the interaction between climate change effects and the economy. A simple but powerful model, DICE (Dynamic Integrated Climate-Economy) model, was developed at Yale. This is an easily accessible model that allows exploration of various parameters that affect long-term (years 2000-2300) climate change. The global economic model estimates the future growth of economic output tempered by abatement costs and climate change damages. It uses an optimization scheme to determine the CO2eq price over time that maximizes discounted utility of consumption. However, there are a few areas that may be improved. This paper addresses those areas. First, a model of renewable energy that explicitly accounts for the capital required for the transition is added. This has the effect of smoothing the beginning of the transition, and shows that we can afford the transition. Second, a modified damage function is used that shows a greater penalty for business as usual. Third, the growth model used in DICE results in a level of economic growth too high to be supported by historical data. A modified growth model is proposed based primarily on historical data from the Penn World Table that results in lower growth and a more rapid decline in growth rate. |
| Keywords: | economic growth, energy, climate |
| JEL: | O41 O44 Q43 Q54 |
| Date: | 2015–05–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:64588&r=ene |
| By: | Jean-Denis Garon; Charles Séguin |
| Abstract: | We study the welfare effects of a revenue-neutral green tax reform in a federation. The reform consists of increasing a tax on a polluting input and reducing that on labor income. Households are fully mobile within the federation. Regions are unequally endowed with a non-renewable natural resource. Resource rents are owned by regions and are redistributed to citizens on a residence basis, which generates a motive for inefficiently relocating to the resource-rich jurisdiction. Since the resource-poor region has a higher marginal product of labor than does the resource-rich region, the tax reform mitigates the scope of inefficient migration. This positive welfare effect may significantly reduce abatement costs of pollution and calls for higher environmental tax, as compared with a model where migration is assumed away. |
| Keywords: | Federalism, Environment, Taxation, Equalization, Mobility, Externalities |
| JEL: | D62 H21 H23 H77 |
| Date: | 2015 |
| URL: | http://d.repec.org/n?u=RePEc:lvl:lacicr:1509&r=ene |