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on Energy Economics |
| By: | Santeramo, Fabio Gaetano; Searle, Stephanie |
| Abstract: | The United States (US) Renewable Fuel Standard and California’s Low Carbon Fuel Standard support the use of soy biodiesel and renewable diesel in the transport fuel supply for climate mitigation. However, linkages between the markets for soy oil and palm oil, which is associated with very high land use change emissions, could negatively affect the climate performance of soy-based biofuels. This study estimates the own and cross-price elasticities for the supply of soy and palm oils in the US using country-level data from 1992 to 2016 under rational expectations, through a seemingly unrelated regressions system of equations. We find a positive cross-price elasticity of palm oil import with respect to soy oil price and a positive reaction of supply of soy oil to increase in prices of palm oil. These results suggest that US biofuel policies may underestimate substitution between soy and palm oils and thus overestimate the climate benefits from soy-based biofuel. |
| Keywords: | Biofuel; Price elasticity; Oils market; SURE |
| JEL: | O13 P28 Q21 Q41 Q42 |
| Date: | 2018–09 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90248&r=ene |
| By: | Zhu Liu; Bo Zheng; Qiang Zhang |
| Abstract: | Global achievement of climate change mitigation will heavy reply on how much of CO2 emission has and will be released by China. After rapid growth of emissions during last decades, China CO2 emissions declined since 2014 that driven by decreased coal consumption, suggesting a possible peak of China coal consumption and CO2 emissions. Here, by combining a updated methodology and underlying data from different sources, we reported the soaring 5.5% (range: +2.5% to +8.5% for one sigma) increase of China CO2 emissions in 2018 compared to 2017, suggesting China CO2 is not yet to peak and leaving a big uncertain to whether China emission will continue to rise in the future. Although our best estimate of total emission (9.9Gt CO2 in 2018) is lower than international agencies in the same year, the results show robust on a record-high energy consumption and total CO2 emission in 2018. During 2014-2016, China energy intensity (energy consumption per unit of GDP) and total CO2 emissions has decreased driven by energy and economic structure optimization. However, the decrease in emissions is now offset by stimulates of heavy industry production under economic downturn that driving coal consumption (+5% in 2018), as well as the surging of natural gas consumption (+18% in 2018) due to the government led coal-to-gas energy transition to reduce local air pollutions. Timing policy and actions are urgent needed to address on these new drivers to turn down the total emission growth trend. |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1811.09475&r=ene |
| By: | Steven E. Sexton; A. Justin Kirkpatrick; Robert Harris; Nicholas Z. Muller |
| Abstract: | Federal and state policies in the U.S. subsidize electricity generation from 1.4 million rooftop solar arrays because of pollution avoidance benefits and grid congestion relief. Yet because these benefits vary across the U.S. according to solar irradiance, technologies of electricity generators, and grid characteristics, the value of these benefits, and, consequently, the optimal subsidy, are largely unknown. Policy, therefore, is unlikely to have induced efficient solar investments. This paper (1) provides the first systematic, theoretically consistent, and empirically valid estimates of pollution damages avoidable by solar capacity in each U.S. zip code, (2) relates these external benefits to subsidy levels in each U.S. state, and (3) estimates the share of these benefits that spillover to other states. It also measures the energy value of capacity across the U.S. and the value of transmission congestion relief in California. Environmental benefits are shown to vary considerably across the U.S., and to largely spillover to neighboring states. Subsidy levels are essentially uncorrelated with environmental benefits contributing to installed capacity that sacrifices approximately $1 billion per year in environmental benefits. Energy value is estimated to vary less than environmental benefits, while California rooftop solar is shown to generate no congestion relief. |
| JEL: | Q47 Q48 Q50 Q52 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:25241&r=ene |
| By: | Mehmet Balcilar (Department of Economics, Eastern Mediterranean University); Zeynel Abidin Ozdemir (Gazi University, Ankara, Turkey); Huseyin Ozdemir (Gazi University, Ankara, Turkey); Muhammad Shahbaz (Montpelier Business School, Montpelier, France) |
| Abstract: | This paper investigates the relationship between carbon dioxide emissions, energy consumption and economic growth in the G-7 countries from a historical perspective. To this end, taking time varying interaction and business cycle into account, we use the historical decomposition method for the first time in the literature. Our results provide evidence that Canada, Italy, Japan and partly the United States need to sacrifice economic growth if they aim to reduce CO2 emissions by decreasing the fossil-based energy use. This situation is not valid since the early 1990s for France, throughout the analysis period for Germany and a few exceptions in all periods for the UK. Furthermore, empirical results provide evidence contrary to the EKC hypothesis for Canada, Germany, Japan, the UK and the US. We found BC-shaped and N-shaped curve for France and Italy, respectively. Although the EKC hypothesis is not valid for Germany and the UK, economic growth has no damaging effect on environmental quality. Also, this effect seems to be cyclical for the US. While the energy conservation theory is fully supported for Canada, it is strongly supported for France, Italy, Japan and the US with the exception of some periods. In addition to these findings, we find strong evidence to support the growth theory for all the G-7 countries. |
| Keywords: | CO2 emissions; Energy consumption; Economic growth; Historical Decomposition; G-7 Countries. |
| JEL: | C22 Q42 Q48 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:emu:wpaper:15-41.pdf&r=ene |
| By: | Bilgili, Faik; Mugaloglu, Erhan; Koçak, Emrah |
| Abstract: | This paper observes the possible co-movements of oil price and CO2 emissions in China by following wavelet coherence and wavelet partial coherence analyses to be able to depict short-run and long-run co-movements at both low and high frequencies. To this end, this research might provide the current literature with the output of potential short run and long run, structural, changes in CO2 emissions upon a shock (a change) in oil prices in China together with the control variables of World oil prices, fossil energy consumption, and renewables consumption, and, urban population in China. Therefore, this research aims at determining wavelet coherencies between the variables and phase differences to exhibit the leading variable in potential co-movements. By following the time domain and frequency domain analyses of this research, one may claim that the oil prices in China has considerable negative impact on CO2 emissions at high frequencies for the periods 1960-2014 and 1971-2014 in China. Besides, one may underline as well other important output of the research exploring that the urban population and CO2 emissions have positive associations, move together for the period 1960-2014 in China. Eventually, this paper might suggest that authorities follow demand side management policies considering energy demand behavior at both shorter cycles and longer cycles to diminish the CO2 emissions in China. |
| Keywords: | Wavelet coherence, wavelet partial coherence, oil price, CO2 emissions, urbanization, China |
| JEL: | C1 C32 C49 C61 C63 E32 E37 I0 J11 J18 Q2 Q21 Q31 Q32 Q40 Q52 Q53 Q56 Q57 R0 |
| Date: | 2018–04 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90170&r=ene |
| By: | Yimeng Du (Graduate School of Economics, Kobe University); Kenji Takeuchi (Graduate School of Economics, Kobe University) |
| Abstract: | This study investigates the effectiveness of regionally differentiated feed-in tariffs (FIT) for the development of renewable energy in China. By using a spatial regression discontinuity design, we estimate the impacts of regionally differentiated FITs on the outcome indicators of wind and solar power generation, such as utilization rate, installed capacity, power generation, and hours of operation. Our findings show that FIT implementation plays a role in promoting renewable energy development in resourcepoor regions. A small difference in the tariff rate leads to statistically significant differences in outcome indicators among regions. Our results suggest that regionally differentiated FITs might help mitigate the overproduction of wind electricity in regions with abundant wind resources but low electricity demand. |
| Keywords: | Feed-in Tariff; Renewable Energy; Renewable Curtailment; Spatial Regression Discontinuity Design |
| JEL: | Q42 Q48 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:koe:wpaper:1828&r=ene |
| By: | Clément Bonnet; Samuel Carcanague; Emmanuel Hache; Gondia Sokhna Seck; Marine Simoën |
| Abstract: | Intellectual property is a central issue in the climate negotiations. On the one hand, it shapes and encourages innovation in low-carbon technologies. On the other hand, it reduces access to these technologies by giving patent holders market power. We analyze the interactions between climate negotiations and the acquisition of patents on renewable energy technologies. First, we recall the geopolitical nature of intellectual property and explain how it is modified by the particularities of low-carbon innovation. The second part of this article is devoted to an inventory of the production of inventions in renewable energy technologies (RETs). In particular, we focus on the relative technological advantages of countries and the value of patented inventions. Major changes are observed in the geographical distribution of low-carbon innovation during the 2000s and they foreshadow a reorganization of the geopolitical balances of innovation in renewable energies. |
| Keywords: | Patent data, energy transition, renewable energy technology, innovation, international relations |
| JEL: | Q42 Q55 O31 O38 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2018-45&r=ene |
| By: | Halkos, George; Barmpoudaki, Kyriaki; Voulagkas, George; Tsilika, Kyriaki |
| Abstract: | The primary objective of this paper is the structural analysis of source-receptor air pollution problems in the EU region. Two views are provided for the analysis: an emission-driven view and a deposition-driven view. Different visual schemes are used to reproduce the global pollution network and identify the biggest sources and sinks of pollution. Visual modelling helps to understand the linkages and interconnections in the transboundary pollution network. Our interactive outputs give the options to zoom in to specific areas of the global source-receptor air pollution scheme and highlight the top emitters or receptors of pollution. Ranking of countries in decreasing order of pollution responsibility and/or vulnerability using graph metrics is a main result. Data sources are emissions-depositions (or source-receptor) tables of air pollutants, available online from the data repository of the European Monitoring and Evaluation Program (EMEP) of the Long-Range Transmission of Air Pollutants in Europe. In our computer-based visual analysis, we employ solely open software. |
| Keywords: | source-receptor air pollution; network analysis; heatmaps; free open-source software. |
| JEL: | C63 C88 Q50 Q53 Q58 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90267&r=ene |
| By: | Michael Olabisi, David L. Tschirley, David Nyange and Titus Awokuse |
| Abstract: | We analyze domestic household energy demand and use patterns in Tanzania, using a detailed household survey of purchase transactions, a multivariate probit model, and the QUAIDS modeling framework. The main fuel sources that we study are kerosene, charcoal, and firewood. These three accounted for 96.5% of spending on energy by households. Charcoal and firewood are used for cooking while kerosene is used for both lighting and cooking. Kerosene is almost exclusively imported, while charcoal and firewood are produced domestically. These fuel sources are important, given the impacts of wood harvesting on the environment and kerosene imports on public finances. We find a statistically significant response in kerosene demand to charcoal prices, suggesting a pattern of substitution, but no strong substitution relationships between other fuel-pairs. These results, which we used in a simulation of tariff change, imply that policies centered on price changes may not be effective in changing consumer behavior unless alternative sources of energy are readily accessible. |
| Keywords: | Agricultural and Food Policy, Food Security and Poverty, International Development |
| Date: | 2018–10–24 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miffrp:279913&r=ene |
| By: | Emmanuel Hache; Angélique Palle |
| Abstract: | This article studies the integration of variable renewable energy sources (RES) into power networks. The main goal is to confront the contents and trends of scientific literature with the eyes and projects of researchers on future topics and issues to be solved, especially in terms of modeling of electrical systems. The analysis relies on a bibliometric study of the Scopus database on the topic and on an online survey sent to the corresponding authors of the identified papers. The paper analyses the dynamics of publication, clusters of collaboration and main studied topics. It then identifies potential research leads, among which unresolved challenges regarding technical aspects, markets and financing issues and social aspects. The paper concludes on the policy implications of the mentioned results. The disparity of models and results is still a necessary evil as research is not mature enough to integrate in one model all the very complex parameters of VRE integration into power systems. Some recurring lacks though, such as the impact of emergent technologies or the development of substitute low carbon emitting technology (other than solar and wind), need to be addressed. The paper also advocates the need for a systemic vision, for both research and policy makers that goes beyond the sole power system. |
| Keywords: | Variable renewable energy, bibliometric analysis, scenario, survey, power network, policy |
| JEL: | Q42 Q48 Q55 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2018-50&r=ene |
| By: | Emmanuel Hache (IFPEN - IFP Energies nouvelles - IFPEN - IFP Energies nouvelles, IRIS - Institut de Relations Internationales et Stratégiques, EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Angélique Palle (IRSEM - Institut de recherche stratégique de l'Ecole militaire - Ecole militaire, PRODIG - Pôle de recherche pour l'organisation et la diffusion de l'information géographique - Sorbonne Université - UPD7 - Université Paris Diderot - Paris 7 - IRD - Institut de Recherche pour le Développement - AgroParisTech - UP1 - Université Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This article studies the integration of variable renewable energy sources (RES) into power networks. The main goal is to confront the contents and trends of scientific literature with the eyes and projects of researchers on future topics and issues to be solved, especially in terms of the modeling of electrical systems. The analysis relies on a bibliometric study of the Scopus database on the topic and on an online survey sent to the corresponding authors of the identified papers. The paper analyzes the dynamics of publication, clusters of collaboration, and main topics studied. It then identifies potential research leads, among which unresolved challenges regarding technical aspects, markets and financing issues, and social aspects. The disparity of models and results is still a necessary evil as research is not mature enough to integrate in one model all the very complex parameters of VRE integration into power systems. There is a lack of recurrence, though, such as the impact of emergent technologies or the development of substitute low carbon-emitting technology (other than solar and wind), need to be addressed. The paper also advocates the need for a systemic vision, for both research and policymakers that goes beyond the sole power system. |
| Keywords: | Variable renewable energy,bibliometric analysis,scenario,survey,power network |
| Date: | 2019–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-01929420&r=ene |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Nicholas M. Odhiambo (University of South Africa, Pretoria, South Africa) |
| Abstract: | In the light of challenges to sustainable development in the post-2015 development agenda, this study assesses how increasing carbon dioxide (CO2) emissions affect inclusive human development in 44 countries in sub-Saharan Africa for the period 2000-2012. The following findings are established from Fixed Effects and Tobit regressions. First, unconditional effects and conditional impacts are respectively positive and negative from CO2 emissions per capita, CO2 emissions from liquid fuel consumption and CO2 intensity. This implies a Kuznets shaped curve because of consistent decreasing returns. Second, the corresponding net effects are consistently positive. The following findings are apparent from Generalised Method of Moments (GMM) regressions. First, unconditional effects and conditional impacts are respectively negative and positive from CO2 emissions per capita, CO2 emissions from liquid fuel consumption and CO2 intensity. This implies a U-shaped curve because of consistent increasing returns. Second, the corresponding net effects are overwhelmingly negative. Based on the robust findings and choice of best estimator, the net effect of increasing CO2 emissions on inclusive human development is negative. Policy implications are discussed. |
| Keywords: | CO2 emissions; Sustainable development; Inclusiveness |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:afe:wpaper:18/015&r=ene |
| By: | Lauf, Thomas; Ek, Kristina; Gawel, Erik; Lehmann, Paul; Söderholm, Patrik |
| Abstract: | The purpose of this paper is to investigate the impacts of land-use policies on wind power deployment at the regional levels in Germany and Sweden, respectively. We use data on added wind capacity at the German district level and the Swedish municipality level over the time period 2008-2012. These data are analysed with a model specification permitting the probability of having any capacity addition (1/0) during this period to be independent of the level of the installed capacity (in MW). The results confirm that the regional variations in wind power deployment can to a significant extent be attributed to land-use policies, not least in the form of priority areas and the designation of restricted areas. The quantitative results display interesting differences across the two countries, not least concerning the role of priority areas, which is found to be much more profound in the German case. The assignment of protected areas appears instead to have constituted a more stringent policy tool in Sweden. Furthermore, cross-country differences in the relevance of various explanatory variables are also found to be related to geographical patterns, the overall extent of wind power deployment, as well as the design of the support schemes for wind power. Overall, the results highlight the need for better understanding of the critical role of land-use policies for future renewable energy development in various national and institutional contexts. |
| Keywords: | wind power,regional distribution,land-use policy,Germany,Sweden |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ufzdps:12018&r=ene |
| By: | Alex Schmitt |
| Abstract: | At what rate should a government price carbon emissions? This paper analyzes optimal carbon pricing while taking into account interactions with the taxation of labor and capital income. In an otherwise standard climate-economy model, the policy maker has to resort to a distortionary tax on labor and capital income, and is unable to commit to future policies. I show that the optimal time-consistent carbon price is in general not at its Pigouvian level, that is, at the level of marginal damages induced by climate change. This is due to the presence of costs and benefits of emitting carbon that only materialize in the presence of income taxes. Quantitatively, I find that in a standard calibration of the model, this tax-interaction effect accounts for deviation of the optimal tax from the level of marginal climate damages in the ballpark of 10%, due to the second-best effects partially offsetting each other. Compared to a setting with lump-sum income taxes, I observe a smaller optimal carbon price without commitment, with the average differences over time amounting to 14%. |
| Keywords: | Climate-economy modeling, carbon tax, optimal income taxation |
| JEL: | E61 E62 H21 H23 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ifowps:_274&r=ene |
| By: | Fujii, Hidemichi; Managi, Shunsuke |
| Abstract: | Sustainable green technology is an important contributor to creating a sustainable society by simultaneously promoting environmental conservation and economic development. This study examines the determinants of sustainable green technology invention in China, with a focus on the differences in green technology development priorities in each five-year plan period. This study uses patent publication data in a patent decomposition analysis framework. We find that sustainable green patent publications increased due to efficiency improvements, the prioritization of sustainable green patents, an increased R&D expenditure share and economic growth, especially during periods of gradual economic development in China. Additionally, we find that the relative priority of R&D shifted from renewable energy technology to pollution abatement and other sustainable green technology in the 12th five-year plan. The different R&D priority trends for sustainable green technologies among the five-year plans can be used to formulate effective policies that promote sustainable green technology invention. |
| Keywords: | sustainable green technology; patent data; decomposition analysis; China; priority change |
| JEL: | O32 O44 Q55 Q56 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:90251&r=ene |
| By: | Sigit PERDANA (Business School, The University of Western Australia); Rod TYERS (Business School, The University of Western Australia and Research School of Economics, Centre for Applied Macroeconomic Analysis (CAMA), Australian National University) |
| Abstract: | Global agreement to reduce carbon emissions has been weakened by slowing growth and burden sharing conflicts. This paper examines strategic interaction amongst regions by simplifying the policy choice to that between carbon taxation and free riding. Benefits from climate change mitigation are constructed via a meta-analysis of existing studies that link carbon concentration with average surface temperature and measures of economic welfare. Implementation costs are then derived by modeling national and global economic performance. Multiplayer, normal form games with payoffs derived by netting costs from shared benefits are then constructed, revealing that the US economy is a net gainer in net present value terms from unilateral implementation. The comparative net benefits to Europe and China are negative but small, making their choice sensitive to the discount rate. The dominant strategy for all other countries is to free ride. Taking the three large economies as a group, there are net gains from implementing carbon taxes, which would be bolstered by universal adoption. Yet compensatory side payments that would induce universal adoption are still not affordable. Moreover, the net gains to all regions do not begin to appear for at least two decades, rendering commitment to abatement politically difficult. |
| Keywords: | climate change, carbon taxation, global dynamic general equilibrium analysis |
| JEL: | F47 Q34 Q54 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:17-09&r=ene |
| By: | Simplice A. Asongu (Yaoundé/Cameroon) |
| Abstract: | We provide policy-relevant critical masses beyond which, increasing CO2 emissions negatively affects inclusive human development. This study examines how increasing CO2 emissions affects inclusive human development in 44 Sub-Saharan African countries for the period 2000-2012. The empirical evidence is based on Fixed Effects and Tobit regressions. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable). All computed thresholds are within policy range. Hence, above these thresholds, CO2 emissions negatively affect inclusive human development. |
| Keywords: | CO2 emissions; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:afe:wpaper:18/020&r=ene |
| By: | D'Orazio, Paola; Popoyan, Lilit |
| Abstract: | While there is a growing debate among researchers and practitioners on the possible role of central banks and financial regulators in supporting a smooth transition to a low-carbon economy, the information on which macroprudential instruments could be used for reaching the "green structural change" is still quite limited. Moreover, the achievement of climate goals is still affected by the so-called "green finance gap". The paper addresses these issues by proposing a critical review of existing and novel prudential approaches to incentivizing the decarbonization of banks' balance sheets and align finance with sustainable growth and development objectives. The analysis carried out in the paper allows understanding under which conditions macroprudential policy could tackle climate change and promote green lending, while containing climate-related financial risks. |
| Keywords: | climate change,climate finance gap,banking regulation,macroprudential policy,central banking,climate-finance risk |
| JEL: | E50 E52 G28 Q50 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:778&r=ene |
| By: | Mehmet Balcilar (Department of Economics, Eastern Mediterranean University); Firat Emir (Department of Economics, Eastern Mediterranean University); Muhammad Shahbaz (Montpelier Business School, Montpelier, France) |
| Abstract: | This paper examines the dynamics of the energy intensity convergence in the EU-28 countries using panel data for the period from 1990 to 2016. We use Phillips and Sul’s (PS) (2007) approach to test for the energy intensity convergence and identify convergence clusters. In addition to the EU-28 members, EU-15 and the new EU members joined after 2004 are analysed as distinct groups for the periods 1990–2016, 1990–2004 and 2005–2016. Our results show convergence amongst the EU countries during the full and two subsample periods considered. However, the convergence takes place within clusters and there is no evidence of all members converging to a single club. Indeed, after the expansion of the EU, and depending on the decoupling of energy intensity levels amongst EU countries, convergence became more common and diverse. The study also makes policy recommendations based on the empirical findings. |
| Keywords: | Energy Intensity, Convergence Test, European Union |
| JEL: | O13 O47 O5 Q52 C22 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:emu:wpaper:15-37.pdf&r=ene |
| By: | Liverpool-Tasie, Lenis Saweda O.; Sanou, Awa; Tambo, Justice A. |
| Abstract: | The poultry sub-sector in Nigeria is experiencing rapid growth and transformation. However, heat stress associated with climate change is a challenge to poultry farmers due to its negative effect on chicken growth and productivity Small poultry farmers tend to invest in traditional strategies such as stocking local breeds Medium and large poultry farmers adopt modern technologies such as air and water ventilation and bulbs that emit less heat Farmers who have experienced heat related losses are more likely to adopt modern practices (water ventilation, pay for litter spreading, buy medicines and vitamins or use energy efficient bulb) and more likely to adopt multiple adaptation strategies. |
| Keywords: | Agricultural and Food Policy, Environmental Economics and Policy, Food Security and Poverty, International Development |
| Date: | 2018–09–10 |
| URL: | http://d.repec.org/n?u=RePEc:ags:miffpb:279872&r=ene |
| By: | Anicet Kabre |
| Abstract: | In this note, we introduce pollution and examine its effects in a finite bilateral oligopoly model where agents have asymmetric Cobb-Douglas preferences. We define two strategic equilibria: the Stackelberg-Cournot equilibrium with pollution (SCEP) and the Cournot equilibrium with pollution (CEP). While the supplied quantities of the polluting and the non-polluting good depend on the preferences of all economic agents in the case of symmetric preferences, we show that when preferences are asymmetric, i) at both equilibria, each polluter’s equilibrium supply depends only on the non-polluters’ preferences for the non-polluting good; ii) at the CEP and the SCEP, the elasticity of the polluters emissions is greater when nonpolluters preferences for the non-polluting good increase, compared to an increase in their own preferences for this good; iii) firm’s emissions’elasticity decreases with the market power if their marginal cost is lower than their competitor. |
| Keywords: | Bilateral oligopoly; Pollution; Cobb-Douglas preferences |
| JEL: | D43 D51 Q52 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2018-48&r=ene |
| By: | Chen, Xi (Yale University) |
| Abstract: | Cognitive functioning is critical as in our daily life a host of real-world complex decisions in high-stakes markets have to be made. The decision-making process can be vulnerable to environmental stressors. Summarizing the growing economic and epidemiologic evidence linking air pollution, cognition performance and real-world decision making, we first illustrate key physiological and psychological pathways between air pollution and cognition. We then document the main patterns of air pollution affecting cognitive test performance by type of cognitive tests, gender, window of exposure, age profile, and educational attainment. We further extend to a review of real-world decision making that has been found to be affected by air pollution and the resulting cognitive impairments. Finally, rich implications on environmental health policies are drawn based on existing evaluations of social costs of air pollution. |
| Keywords: | decision making, air pollution, cognitive performance, intelligence |
| JEL: | I24 Q53 Q51 G11 J24 |
| Date: | 2018–10 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp11921&r=ene |
| By: | Karaki, Mohamad |
| Abstract: | This paper studies the effect of oil price innovations on manufacturing job flows across U.S states. First, I estimate a nonlinear structural equation model and compute impulse response functions by Monte Carlo integration. I find asymmetries in the responses of job flows to positive and negative oil price innovations. Yet, these asymmetries do not pass a test of symmetry on the impulse responses, especially after accounting for data mining. Third, I use a test for the absence of job reallocation to evaluate whether an unexpected increase in the real price of oil price triggers an important change in job reallocation. I find that oil price shocks have limited regional allocative effects. |
| Keywords: | regional business cycles, job flows, oil prices. |
| JEL: | E24 E32 Q43 |
| Date: | 2017–02–24 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:89796&r=ene |
| By: | Manal R. SHEHABI (Business School, The University of Western Australia and Oxford Institute for Energy Studies) |
| Abstract: | From mid-2014 Kuwait has experienced a substantial drop in its petroleum export price and,consequently, government revenue, causing a severe fiscal deficit and impaired economic performance. Cutting energy subsidies has become a policy priority. In the face of widespread opposition, the government raised gasoline prices in August 2016, proclaiming such reform the key to solving economic problems; yet recent policy discussions have not addressed the mechanism of pricing reforms. The paper offers a quantification and assessment of energy pricing reform in the current low petroleum price environment via a general equilibrium model of the Kuwaiti economy that embodies the structure of its economy and its labor market, its oligopolistic industries, and external flows associated with its sovereign wealth fund. Simulations clarify the required adjustments, including the seldom discussed expatriate labor exit and the decline in oligopoly rents. While necessary, subsidy reform implies trade-offs, notably between fiscal stabilization and cost of living sustainability. The results confirm that successful implementation must be accompanied by carefully designed mitigation measures and associated microeconomic reforms. |
| Keywords: | petroleum; price volatility; general equilibrium; subsidy, oligopoly; sovereign wealth fund; expatriate labor; Kuwait, CGE |
| JEL: | C68 D43 D58 E24 E62 F41 H50 L13 L43 O53 Q43 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:17-08&r=ene |
| By: | Simplice A. Asongu (Yaoundé/Cameroon); Jacinta C. Nwachukwu (Preston, United Kingdom); Chris Pyke (Preston, UK) |
| Abstract: | This study examines how information and communication technology (ICT) could be employed to dampen the potentially damaging effects of environmental degradation in order to promote inclusive human development in a panel of 44 Sub-Saharan African countries. ICT is captured with internet and mobile phone penetration rates whereas environmental degradation is measured in terms of CO2 emissions per capita and CO2 intensity. The empirical evidence is based on Fixed Effects and Tobit regressions using data from 2000-2012. In order to increase the policy relevance of this study, the dataset is decomposed into fundamental characteristics of inclusive development and environmental degradation based on income levels (Low income versus (vs.) Middle income); legal origins (English Common law vs. French Civil law); religious domination (Christianity vs. Islam); openness to sea (Landlocked vs. Coastal); resource-wealth (Oil-rich vs. Oil-poor) and political stability (Stable vs. Unstable). Baseline findings broadly show that improvement in both of measures of ICT would significantly diminish the possibly harmful effect of CO2 emissions on inclusive human development. When the analysis is extended with the abovementioned fundamental characteristics, we observe that the moderating influence of both our ICT variables on CO2 emissions is higher in the group of English Common law, Middle income and Oil-wealthy countries than in the French Civil law, Low income countries and Oil-poor countries respectively. Theoretical and practical policy implications are discussed. |
| Keywords: | CO2 emissions; ICT; Economic development; Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2018–01 |
| URL: | http://d.repec.org/n?u=RePEc:afe:wpaper:18/031&r=ene |
| By: | Boysen, Nils; Briskorn, Dirk; Emde, Simon |
| Date: | 2018–02 |
| URL: | http://d.repec.org/n?u=RePEc:dar:wpaper:109725&r=ene |
| By: | Hamann, Franz (Banco de La Republica); Mendoza, Enrique G. (University of Pennsylvania); Restrepo-Echavarria, Paulina (Federal Reserve Bank of St. Louis) |
| Abstract: | In this paper we document the stylized facts about the relationship between international oil price swings, sovereign risk and macroeconomic performance of oil-exporting economies. We show that even though being a bigger oil producer decreases sovereign risk–because it increases a country’s ability to repay–having more oil reserves increases sovereign risk by making autarky more attractive. We develop a small open economy model of sovereign risk with incomplete international financial markets, in which optimal oil extraction and sovereign default interact. We use the model to understand the mechanisms behind the empirical facts, and show that it supports them. |
| Keywords: | Sovereign Risk; Oil Production; Oil Reserves; Oil Price Swings |
| JEL: | F34 Q32 |
| Date: | 2018–10–01 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fedlwp:2018-032&r=ene |
| By: | Estelle Cantillon; Aurelie Cecile Dominique Slechten |
| Abstract: | A key policy argument in favor of emissions markets (relative to command-and-control types of regulation) is their ability to aggregate dispersed information and generate price signals to guide firms' trading and abatement decisions. We investigate this argument in a multi-period model where firms receive noisy private signals about their current period emissions and privately observe their previous period emissions before this information is made public to the rest of the market. Firms respond to information by trading and abating emissions. We show that there exists a rational expectations equilibrium that fully aggregates firms' private information, justifying the policy argument in favor of emissions markets, in the absence of other frictions. We also derive predictions about how prices should be reacting to new private or public information and show that the possibility of abatement dampens the impact of shocks on prices. Finally, we show that the information aggregation result breaks down if firms' abatement costs are also private information. |
| Keywords: | emissions trading, Information aggregation, efficient market hypothesis, price formation |
| JEL: | G14 D83 D84 D85 Q58 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:lan:wpaper:251505309&r=ene |
| By: | Benjamin Leiva |
| Abstract: | The observed proportionality between nominal prices and average embodied energies cannot be interpreted with conventional economic theory. A model is presented that places energy transfers as the focal point of scarcity based on the idea that (1) goods are material rearrangements, and (2) humans can only rearrange matter with energy transfers. Modified consumer and producer problems for an autarkic agent show that the opportunity cost of goods are given by their marginal energy transfers, which depend on subjective and objective factors (e.g. consumer preferences and direct energy transfers). Allowing for exchange and under perfect competition, nominal prices arise as social manifestations of goods' marginal energy transfers. The proportionality between nominal prices and average embodied energy follows given the relation between the latter and marginal energy transfers. |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:1811.12502&r=ene |
| By: | Silvia Blasi (University of Padova); Silvia Rita Sedita (University of Padova) |
| Abstract: | This paper investigates the factors that influence the dissemination of an energy policy innovation, the collective switching, adopting the business ecosystem as unit of analysis. Collective switching is a new phenomenon that recent literature has not yet investigated. It is characterised by a group of people with common characteristics that, through an intermediary, negotiates with the energy suppliers and, thanks to its bargaining power, is able to obtain advantageous contracts. The 6C framework is adopted in order to perform a cross-country analysis oriented to single out differences in the collective switching ecosystems. Through a comparative case study analysis, which examines in rich detail 11 European countries’ collective switching campaigns, this work provides an accurate description of the collective switching business ecosystem and the ways it reacts to a policy innovation. Semi-structured interviews, conducted with consumer associations that organised collective switching campaigns, provide insights for the definition of some policy interventions. |
| Keywords: | Business Ecosystem, policy innovation, collective switching, energy sector, Europe |
| JEL: | Q40 O52 O57 |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:pad:wpaper:0229&r=ene |
| By: | France Caillavet (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique, INRA - Institut National de la Recherche Agronomique); Adélaïde Fadhuile (GAEL - Laboratoire d'Economie Appliquée de Grenoble - Grenoble INP - Institut polytechnique de Grenoble - Grenoble Institute of Technology - INRA - Institut National de la Recherche Agronomique - CNRS - Centre National de la Recherche Scientifique - UGA - Université Grenoble Alpes, UGA UFR FEG - Université Grenoble Alpes - Faculté d'Économie de Grenoble - UGA - Université Grenoble Alpes); Veronique Nichèle (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique, INRA - Institut National de la Recherche Agronomique) |
| Abstract: | A carbon tax on food could contribute to emissions mitigation and act as a strong signal to economic actors. However, tax regressivity is a major disadvantage. This article addresses equity issues by several means. First, this article includes reallocation proposals in a revenue-neutral approach of several emission-based carbon taxation scenarios at the consumption level on food. Second, this article develops these proposals' distributional incidence, and it evaluates the role of carbon pricing in policy impacts. With a carbon-based approach, the differing emission potentials of food groups highlight the relevance of using proteins as a tax base to redirect animal to plant sources in the diet. Thus, a scenario taxing foods rich in animal proteins and subsidizing plant proteins ones is built. Scanner data on French households in 2010 are analyzed. Several GHG emissions indicators and related nutritional impacts, such as diet quality scores and the shift from animal to plant proteins, are evaluated. Using individual changes in food expenditure, distributional effects based on continuous distribution and inequality indexes are measured, allowing the discussion of the policy options of a targeted vs nontargeted tax and a revenue-neutral approach in the food sector. |
| Keywords: | carbon fiscal policy,revenue neutral,food consumption,regressivity,inequalities |
| Date: | 2018–11 |
| URL: | http://d.repec.org/n?u=RePEc:hal:wpaper:hal-01919440&r=ene |
| By: | Rickels, Wilfried; Merk, Christine; Honneth, Johannes; Schwinger, Jörg; Quaas, Martin F.; Oschlies, Andreas |
| Abstract: | Eine rasche Reduktion der Treibhausgasemissionen ist essentiell wenn ambitionierter Klimaschutz erreicht werden soll. Bei der Abschätzung der dafür notwendigen Anstrengungen und der Bewertung des zukünftigen Beitrags von Technologien die es erlauben der Atmosphäre CO2 zu entziehen (negative Emissionstechnologien, NETs) gehen die Meinungen und Interpretationen über den aktuellen Sonderbericht des Weltklimarats stark auseinander. Interpretationen, die sich auf eher große verbleibende CO2-Budgets beziehen und damit gleichzeitig die Rolle von NETs für die Erreichung des Temperaturziels herunterspielen, führen nicht zu verantwortungsvollen oder realistischen Einschätzungen der zukünftigen (Forschungs-)Herausforderung: Wir müssen bereits jetzt die Grenzen und Auswirkungen der verschiedenen NETS und ihre Wechselwirkungen verstehen, wenn die international angestrebten Minderungspfade realistisch sein sollen. Eine frühzeitige Festlegung auf bestimmte NETs sollte vermieden werden. Sobald die sich als effizient erwiesenen Technologien ausgereift genug sind, sollte der Umfang ihres Einsatzes durch die Einbeziehung in CO2-Emissionshandelssysteme oder (freiwillige) CO2-Kompensationsmärkte bestimmt werden. |
| Keywords: | Klimawandel,Pariser Klimavertrag,CO2-Budgets,Negative Emissionstechnologien,Technologieentwicklung |
| JEL: | O32 Q54 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:2116&r=ene |
| By: | Edenhofer, Ottmar; Schmidt, Christoph M. |
| Abstract: | Das Ziel des Pariser Klimaabkommens, den globalen Temperaturanstieg auf deutlich unter 2°C zu begrenzen, erfordert eine emissionsneutrale Weltwirtschaft ab Mitte dieses Jahrhunderts. Ein sektorübergreifender und weltweiter CO2-Preis ist das kosteneffektivste Instrument, um dieses Ziel zu erreichen. Bisherige Bepreisungssysteme weisen jedoch ein zu niedriges Preisniveau auf und sind zudem nicht ausreichend international koordiniert. Deutschland sollte darauf dringen, dass im Europäischen Emissionshandel (EU ETS) ein Mindestpreis von 20 €/t CO2 ab 2020 eingeführt wird, der bis zum Jahr 2030 auf 35 €/t CO2 ansteigt. Sollte ein europaweiter Mindestpreis politisch nicht durchsetzbar sein, es aber eine große Koalition der Willigen unter den EU-Ländern geben, könnten flexible nationale CO2-Steuern die Differenz zwischen dem Preis am europäischen Zertifikatemarkt und dem unter den Willigen vereinbarten Mindestpreis ausgleichen. Zudem sollten in den nicht vom EU ETS erfassten Sektoren, insbesondere Verkehr und Wärme, die Energieabgaben so reformiert werden, dass sie sich ebenfalls am CO2-Gehalt orientieren. Diese Reform muss allerdings so ausgestaltet sein, etwa durch eine deutliche Reduzierung der Stromsteuer, dass sie nicht zulasten einkommensschwacher Haushalte geht. |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwipos:72&r=ene |
| By: | Caillavet, F.; Fadhuile, A.; Nichele, V. |
| Abstract: | Food consumption is a major driver of environmental impacts. This paper designs carbon taxation scenarios on food, including or not subsidies, and assess their distributional, environmental and nutritional effects. Food price elasticities are estimated from an EASI demand system, and distributional effects are estimated on continuous distribution, which enables us to compute an inequality index. Our results show that a tax policy may be effective in reducing emissions and that a revenue-neutral scenario including subsidies improves as well nutritional and equity aspects. However, to obtain a more important emissions mitigation (-15%), taxing all foods may be considered, with no adverse nutritional and equity effects. Acknowledgement : This work was supported by INRA DIDIT Metaprogramme, Ferrero Cie, and IDEX Grenoble University. None of these sources had any involvement in any stage of this research. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277102&r=ene |
| By: | Chen, X.; Ye, J. |
| Abstract: | This paper investigates the existence and magnitude of air pollution spillovers in Chinese cities. Estimation of this spillover effect is complicated because neighboring cities share similar business/pollution cycles and changes in wind direction can be fairly frequent. To circumvent these empirical challenges, we exploit spatial and temporal variations in PM10 concentrations for 108 major cities in China s Eastern Monsoon Region during the East Asian winter and summer monsoon seasons. We find large pollution spillover effects: a city s average PM10 concentration increases by 0.09-0.21 units during the winter monsoon season and by 0.06-0.10 units during the summer monsoon season, if PM10 concentrations in cities upwind of this city increase by one unit. The percentage contributions of PM10 pollution from upwind cities to local PM10 levels vary by region and can be as large as 30%. These findings are comparable to the existing atmospheric evidence. Our findings suggest that pollution control policies must be coordinated between cities to abate urban air pollution. Acknowledgement : |
| Keywords: | Environmental Economics and Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277146&r=ene |
| By: | Peter R. Hartley (Department of Economics and Center for Energy Studies, James A. Baker III Institute for Public Policy, Rice University and Business School, The University of Western Australia) |
| Keywords: | Energy transition, wind, nuclear, natural gas, electricity storage |
| JEL: | D92 L94 Q42 Q54 Q55 |
| Date: | 2017 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:17-07&r=ene |
| By: | Firat Emir (Department of Economics, Eastern Mediterranean University); Mehmet Balcilar (Department of Economics, Eastern Mediterranean University); Muhammad Shahbaz (Montpelier Business School, Montpelier, France) |
| Abstract: | This study examines the convergence properties of CO2 intensity in EU-28 countries, using panel data for the period 1990 to 2016. We use Phillips and Sul’s (2007) approach to test for CO2 intensity convergence and identify convergence clubs. In addition to the EU-28 members, we analyze the EU-15, and the new EU members (EU-new) that joined after 2004, as distinct groups for the periods 1990–2016, 1990–2004, and 2005–2016. Our results show no convergence to a single group among the EU countries during the full and two subsample periods. However, the convergence takes place within five to seven clubs for the EU-28 and within three to five clubs for the EU-15 and EU-new. There is no evidence of all members converging to a single club in either group or the three sub-periods examined. This study highlights the need for adopting new strategies considering club properties and for sustainable growth, which meets the EU-28 environmental regulation standards. |
| Keywords: | Carbon Intensity; Club Convergence; Convergence Test; European Union |
| JEL: | O13 O47 O5 Q52 C22 |
| Date: | 2018 |
| URL: | http://d.repec.org/n?u=RePEc:emu:wpaper:15-38.pdf&r=ene |
| By: | Ye, C.; Zhuo, N. |
| Abstract: | Air pollution is a very serious problem facing hznaghou of China. The local government in Hangzhou has implemented lottery system for license plate application, traffic ban in rush-hours and investment in subway system to decrease automobile exhaust. The main research objective of this paper is to evaluate the effectiveness of these policies on the air pollution. The data analyzed in this paper include four pollutants (PM2.5, PM10, NO2, SO2) daily concentration (unit: ?g/m ), which is provided by the Environmental Protection Bureau of Zhejiang province. We use both OLS regression and regression discontinuity analysis to check the effects of the three policies memtion above. From the regression results, we find that the "lottery license plate", "rush hour traffic quota" , and subway system expansion all policies improved air quality in Hangzhou. Acknowledgement : Chunhui Ye gratefully acknowledges China National Science Foundation (Project 71773113) as well as Zhejiang University for financial support. |
| Keywords: | Agricultural and Food Policy |
| Date: | 2018–07 |
| URL: | http://d.repec.org/n?u=RePEc:ags:iaae18:277527&r=ene |