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on Energy Economics |
| By: | Pat McAllister; Ilir Nase |
| Abstract: | Energy transition from fossil fuels has been a key focus of governments post Paris Agreement. In 2019, the UK government legislated a net zero emissions target by 2050. Existing buildings account for roughly 40% of the energy related global CO2 emissions, of which nearly 30% comes from operational carbon. Given their contribution to total greenhouse gas emissions, residential buildings operations’ impact has received increased attention with targeted legislative frameworks at the national and supranational levels. A key aspect of the net zero transition are heat pumps as the alternative to fossil fuel, particularly in climates with limited solar energy potential. This paper investigates the heat pump take up rate by new dwellings across local authorities in England and Wales. In addition to documenting the perceived low take up rate, we analyse the factors determining the nuanced dispersion of these rates. We conclude that further action is needed in heat pump take up if they are to constitute a key factor in reducing CO2 emissions to help the UK government achieve its net zero ambition by 2050. |
| Keywords: | Energy transition; Heat pumps; Residential Real Estate |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_328&r=ene |
| By: | Jean Chateau; Antonela Miho; Martin Borowiecki |
| Abstract: | This study analyses the economic effects of the EU's ‘Fit for 55’ climate mitigation policies using the OECD ENV-Linkage model, a dynamic, global Computable General Equilibrium model. The model projects macroeconomic, sectoral, energy and emission trends for the EU, and for the five largest EU economies separately, up to 2035. Policy scenarios combine carbon pricing with regulations to reach the ‘Fit For 55’ emission reduction target in 2030. Additional scenarios analyse i) harmonised carbon pricing across countries and sectors, ii) different forms of revenue recycling from carbon pricing, iii) the effect of the EU’s proposed Carbon Border Adjustment Mechanism on competitiveness, and iv) the effect of Russia’s war against Ukraine on mitigation costs. Given the short time horizon of the analysis (until 2035), the model does not assess the positive economic benefits associated with fewer climate impacts and extreme climate events. ‘Fit for 55’ policies are projected to lead to a loss of GDP per capita of 2.1% in 2035 compared to the reference scenario (pre-‘Fit for 55’ policies), reflecting increasing production costs on the back of higher carbon pricing. Higher carbon pricing is also projected to lead to a loss of competitiveness in energy-intensive industries. The EU’s proposed Carbon Border Adjustment Mechanism may only partly mitigate the loss of competitiveness of energy-intensive industries. Harmonising carbon pricing across sectors would help limit the loss to GDP per capita, as a uniform carbon price is lower and allows for directing emission reduction efforts to sectors and countries with the lowest abatement costs. Finally, Russia’s war against Ukraine has not substantially increased the GDP costs of mitigation. Without the war, lower fossil fuel import prices would have led to higher fossil fuel demand, ultimately requiring more stringent mitigation action. |
| Keywords: | climate change mitigation, Computable General Equilibrium Model, energy, European Union |
| JEL: | C68 H23 Q42 Q48 Q58 R48 |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1775-en&r=ene |
| By: | Martin Borowiecki; Joaquín Calvo Giménez; Federico Giovannelli; Francesco Vanni |
| Abstract: | The EU’s ambitious Green Deal aims at achieving net zero emissions by 2050. The EU is starting from a relatively good position. It has successfully reduced greenhouse gas emissions over the past decade. But further efforts are needed to reach the net zero target. These include an extension of emission trading to agriculture and the phase-out of generous subsidies for fossil fuels. Such efforts should be complemented by additional measures to shift to clean energy, notably more integrated electricity markets and deeper capital markets that provide the necessary investment in new technologies. Accelerating the green transition will also involve costs for displaced workers. Bolstering workers’ mobility and training will help improve labour reallocation and reduce transition costs. |
| Keywords: | agriculture, climate change mitigation, energy, European Union, transport |
| JEL: | H23 Q15 Q18 Q42 Q48 Q58 R48 |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1777-en&r=ene |
| By: | Burke, Andrew; Fulton, Lewis |
| Keywords: | Engineering, Social and Behavioral Sciences, clean fuel, hydrogen, transportation fuel, synthetic natural gas |
| Date: | 2023–11–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt00h2k09h&r=ene |
| By: | Linde Kattenberg; Nils Kok; Piet Eichholtz |
| Abstract: | Energy efficiency in the housing market is considered an important tool to reduce energy consumption and carbon emissions, as well as to enhance national energy independence and protect consumer balance sheets. Home insulation plays an important role in improving the energy efficiency of a home. However, the impact of insulation measures on actual gas consumption is typically based on engineering predictions, and the efficacy of insulation measures is subject to debate. This study exploits a unique home insulation sample, combined with detailed household data on actual gas consumption before and after these interventions, and information on the socio-economic characteristics of occupants. Using a difference-in-difference approach, we document that home insulation reduces gas consumption by about 20%, on average, both for owner-occupied and rental homes. For the latter, the treatment is plausibly exogenous. We find no evidence of a temporal rebound effect: the reduction in gas consumption is consistent up to ten years after the intervention. At 2022 gas prices, the average treatment effect translates into an €866 reduction in the annual gas bill, and an average rate of return of 41.6% on the initial investment. |
| Keywords: | Energy Efficiency; insulation; Residential |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_57&r=ene |
| By: | Daniel Piazolo |
| Abstract: | In the yearly United Nations Climate Change Conferences the participating countries have agreed to establish legally binding obligations to reduce greenhouse gas emissions. The climate change reduction measures as set out in the Paris Agreement are translated for the various countries into specific regulatory requirements by the nationally determined contributions – NDCs. The necessary reductions in greenhouse gas emissions until the year 2050 are split up for the various sectors like buildings, energy, industry, transport, agriculture or waste management. The building sector is decisive to limit global warming stemming from the increase in CO2 emissions. If the maximum temperature rise due to CO2 emission should be really kept to 2.0% (or even 1.5%) how much does the building stock has to decarbonize by when? Is this achievable for Europe? Seventy-five per cent of buildings in Europe are energy inefficient. Most of today’s buildings will still be in use in 2050. The annual renovation rate is only around 1.2 per cent. Investments in higher energy efficiency in real estate are often seen as low return and high risk. The perception of high risk is related to unclear investment costs, uncertain financing options and payback periods that are considered long. It is examined how the required route to net-zero for the real estate sector according to the nationally determined contributions match the present circumstances of the existing building stock in Europe. |
| Keywords: | Buildings; Climate Change; Decarbonization; Emissions |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_202&r=ene |
| By: | Kim, Hyunseok |
| Abstract: | As carbon reduction targets are being strengthened globally, it is increasingly important in Korea to comprehend the impact of two major greenhouse gas (GHG) reduction policies, Target Management System (TMS) and Emissions Trading System (ETS), on industrial competitiveness. ETS relies more on individual firms' economic incentives compared to TMS, which is a command-andcontrol regulation. While the transition from TMS to ETS in 2015 is found to have partially alleviated the burden for manufacturing firms, there is a need to enhance policy effectiveness by acknowledging their limited performance in reducing carbon emissions thus far. While TMS was introduced in 2011 with the aim of enforcing emissions reduction and enhancing energy efficiency across different sectors, heavy emitters have been managed separately through ETS since 2015. Knowing the low abatement performance in the manufacturing industry after mid-2010, the reduced burden can be attributed to two factors: i) improvement in efficiency resulting from the transition, and ii) alleviation of the burden through the provision of free allocations. The policy efforts should aim for a greater reduction by strengthening the targets for the regulated firms, which is in line with the reinforced policy goals announced in October 2021. Stricter goals are inevitable in the future, and therefore, policymakers must endeavor to bolster the sustainability of the manufacturing sectors by developing a detailed roadmap based on multiple indicators. Taking into account the varying impacts of GHG reduction policies on the competitiveness based on the energy intensity and emission intensity of each sector, the roadmap needs to be carefully crafted in order to impose a feasible burden on the regulated firms. |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:kdifor:279691&r=ene |
| By: | Domeshek, Maya (Resources for the Future); Burtraw, Dallas (Resources for the Future); Palmer, Karen (Resources for the Future); Roy, Nicholas (Resources for the Future); Shih, Jhih-Shyang (Resources for the Future) |
| Abstract: | The Inflation Reduction Act (IRA) promises to deliver important reductions in CO2 emissions from the electricity sector along with a host of other benefits to citizens and electricity consumers, but it falls short of achieving the 80 percent reduction below 2005 levels by 2030 (80x30) consistent with meeting the nation’s Paris goals. This paper examines the consequences of the IRA and of policies designed to hit the Paris targets for generation mix, consumer costs of electricity, the federal budget, air quality, and human health. Our modeling shows that the IRA substantially reduces the allowance price for necessary an emissions cap to meet the 80x30 goal in the power sector and that doing so yields savings to consumers, particularly those with lower incomes, and additional health benefits beyond those promised from the IRA. |
| Date: | 2023–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-42&r=ene |
| By: | Wang, Junbo; Ma, Zhenyu; Fan, Xiayang |
| Abstract: | Amid the escalating global climate crisis, the European Union (EU) has assumed a prominent role by introducing the Carbon Border Adjustment Mechanism (CBAM). This initiative aims to bolster climate action and mitigate carbon leakage. Nevertheless, considerable debate surrounds the practical efficacy of this measure and its conformity with World Trade Organization (WTO) regulations. This paper's objective is to quantitatively evaluate the welfare and carbon abatement effects of CBAM on the EU and other prominent economies. We develop a comprehensive multi-country, multi-sector general equilibrium model that incorporates EU carbon tariffs, global production networks, and carbon emissions to achieve this goal. The estimation of key parameters is conducted through a structural methodology that directly evaluates the impacts on welfare and carbon emissions resulting from unilateral or multilateral low-carbon policies. The analysis revealed that CBAM would enhance the welfare of the EU, Japan, South Korea, Norway, Switzerland, and the United States. Conversely, all other economies would experience a reduction in welfare, with Russia suffering the most significant loss and China the least. Furthermore, despite CBAM's effective global carbon emission reduction, its impact on the EU's domestic carbon reduction is limited. Counterfactual analyses indicate that global carbon emissions decrease in scenarios involving a globally standardized carbon pricing mechanism, China's elevation of carbon pricing alongside a carbon tariff, and the European Union's extension of taxation to all sectors. However, these scenarios result in substantial disparities in welfare levels among countries, with the most substantial reduction in global carbon emissions occurring exclusively with a globally harmonized carbon price, accompanied by the most minor overall welfare loss. In conclusion, this paper advocates for enhanced international collaboration and dialogue among nations to foster harmonizing carbon pricing policies and adopt a universally standardized carbon pricing mechanism. |
| Keywords: | EU CBAM; Carbon leakage; Carbon abatement; Welfare analysis; Quantitative trade model |
| JEL: | F17 F64 Q56 Q58 |
| Date: | 2023–09–08 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:118978&r=ene |
| By: | Gegner, Martin |
| Abstract: | Am 21. April 2023 wurde das Gesetz zum Neustart der Digitalisierung der Energiewende (GNDEW), eingebracht von den Fraktionen Bündnis 90/ Die Grünen, der SPD sowie der FDP und federführend entwickelt vom Bundesministerium für Wirtschaft und Klimaschutz (BMWK), vom Bundestag, verabschiedet. Das GNDEW ist, eingebunden in die Novellen des Erneuerbare-Energien-Gesetzes, des Energiewirtschaftsgesetzes, des Gebäudeenergiegesetzes und Wärmeplanungsgesetzes, ein wichtiger Bestandteil der Vorhaben des grünen Koalitionspartners zur Förderung und Beschleunigung der Energiewende, wenn auch dieses weitaus weniger bekannt ist und diskutiert wurde als die anderen genannten Gesetze. Bezeichnenderweise gibt es eine für die Sektorenkopplung mit der Energie notwendige Verkehrswende, die Maßnahmen zur Reduktion des CO2 -Ausstoßes im Verkehr voranbringt, keine Gesetzesinitiativen des zuständigen Fachministers von der FDP. Im Gegenteil: 2023 wurden die geplante Anpassung der CO2 -Bepreisung verschoben und die Pendlerpauschale um 3 Cent pro Kilometer erhöht, also Maßnahmen beschlossen, die eher zur CO2 -Steigerung als zur Minderung beitragen. Damit liegt die Aktivität der Regierung beim Ziel, die Klimaneutralität möglichst in den 2030er Jahren zu erreichen, zurzeit einzig bei den Grünen und hier vor allem beim, von Vizekanzler Habeck geführten, BMWK. Die hier im Rahmen des BMBF-geförderten Projekts Mobility2Grid interessierende Fragen lauten, ob die regulativen Vorhaben der derzeitigen Bundesregierung zur Förderung der Sektorenkopplung von Energie- und Verkehrswende auf die Akzeptanz der beteiligten Stakeholder stoßen, wer von den Maßnahmen profitiert und welche energiepolitischen und gesamtgesellschaftlichen Folgen sich daraus ergeben. Dies soll am Beispiel des GNDEW untersucht werden. |
| Abstract: | On 21 April 2023, the Act on the Re-launch of the Digitalisation of the Energy Transition (GNDEW), introduced by the parliamentary groups Bündnis 90/Die Grünen, SPD and FDP and developed by the Federal Ministry of Economics and Climate Protection (BMWK), was passed by the Bundestag. The GNDEW, integrated into the amendments to the Renewable Energy Sources Act, the Energy Industry Act, the Building Energy Act, and the Heat Planning Act, is an important component of the green coalition partner's plans to promote and accelerate the energy transition, even though it is far less known and discussed than the other laws mentioned. Significantly, the transport turnaround (Verkehrswende), which is necessary for sector coupling with energy and which advances measures to reduce CO2 emissions in transport, has not been the subject of any legislative initiatives by the responsible minister from the FDP. On the contrary: in 2023, the planned adjustment of CO2 pricing was postponed and the commuter tax allowance was increased by 3 cents per kilometer, i.e. measures were adopted that contribute more to increasing CO2 than to reducing it. This means that the government's activity towards the goal of achieving climate neutrality, if possible in the 2030s, currently lies solely with the Greens, and here above all with the BMWK led by Vice-Chancellor Habeck. The questions of interest here in the context of the BMBF-funded project Mobility2Grid are whether the regulatory plans of the current federal government to promote the sector coupling of energy and transport transition meet with the acceptance of the stakeholders involved, who benefits from the measures and what are the consequences for energy policy and society as a whole. This will be investigated using the example of the GNDEW. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wzbdms:279779&r=ene |
| By: | Mahlkow, Hendrik; Wanner, Joschka |
| Abstract: | International trade is highly imbalanced both in terms of values and in terms of embodied carbon emissions. We show that the persistent current value trade imbalance patterns contribute to a higher level of global emissions compared to a world of balanced international trade. Specifically, we build a Ricardian quantitative trade model including sectoral input-output linkages, trade imbalances, fossil fuel extraction, and carbon emissions from fossil fuel combustion and use this framework to simulate counterfactual changes to countries' trade balances. For individual countries, the emission effects of removing their trade imbalances depend on the carbon intensities of their production and consumption patterns, as well as on their fossil resource abundance. Eliminating the Russian trade surplus and the US trade deficit would lead to the largest environmental benefits in terms of lower global emissions. Globally, the simultaneous removal of all trade imbalances would lower world carbon emissions by 0.9 percent or 295 million tons of carbon dioxide. |
| Keywords: | Carbon emissions, international trade, gravity |
| JEL: | F14 F18 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:wuewep:279808&r=ene |
| By: | Hanming Fang; King King Li; Peiyao Shen |
| Abstract: | Coal heating in residential homes is an important source of indoor air pollution, leading to detrimental health effects. We conduct a randomized field experiment in northern China using three types of SMS campaigns targeting three potential biases that may hinder the adoption of electric heating: a Cost SMS campaign, designed to address the overestimation of electricity expenses; a Health SMS campaign, aimed at addressing the underestimation of health damage associated with coal heating; and a Social Comparison SMS campaign, intended to inform households about the popularity of electric heating. We find that the Cost SMS backfires: it instead leads to a substantial reduction in electric heating, which can be attributed to salience bias induced by the Cost SMS, which drew heightened attention to the cost of electricity. The Health SMS is ineffective for households that underestimate the health damage of coal heating and even backfires for those who expressed little concern about the health consequences. Social Comparison SMS is only effective for a small proportion of households who were concerned about their neighbors' heating choices. Overall, our findings suggest that SMS campaigns targeting these biases are largely ineffective, and caution should be exercised when applying plausible nudge interventions. The findings also suggest that households may be motivated to maintain their beliefs and resist paternalistic interventions. |
| JEL: | C93 D91 Q50 Q58 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:31841&r=ene |
| By: | Bangsund, Dean A.; Hodur Nancy M. |
| Keywords: | Demand and Price Analysis, Environmental Economics and Policy, Marketing, Production Economics |
| Date: | 2023–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:ags:nddaae:338861&r=ene |
| By: | Wilhelm, Maike; Aydemir, Ali; Rohde, Clemens |
| Abstract: | Previous international climate change agreements have primarily been driven by states, such as the UN Conference on Environment and Development in Rio de Janeiro in 1992, followed by the Kyoto Protocol in 1997 and the Paris Agreement in 2015. Perhaps due to the national focus of these agreements, discussions and actions to date have mainly centred on direct carbon emissions from households, transport and industry. However, it is important not to overlook the significant potential for the financial industry to contribute towards combating climate change. Through their lending activities, they determine which economic activities receive financing and which do not. This economic power is needed to achieve the Paris climate goals. While Germany's Climate Protection Act provides a framework for meeting these goals, it does not impose specific requirements on banks. However, German banks have voluntarily committed to fulfilling their responsibilities in regards to climate policy. In this study, we analyze the goals and measures that German banks plan to pursue in their efforts to combat climate change based on self-statements found in their strategy papers. |
| Keywords: | green finance, sustaible finance, policy measures |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:fisisi:279796&r=ene |
| By: | International Monetary Fund |
| Abstract: | Climate change is both a major threat and a source of opportunities for Morocco’s development. On one hand, Morocco is one of the world’s most water-stressed countries, and water scarcity is a serious constraint to the country’s ambition to transition to a new model of development. The authorities are planning to boost investment in water infrastructure, but this should be complemented by demand management reforms that bring the price of water closer to its actual cost and induce a shift in consumption behavior. On the other hand, Morocco can take advantage of its abundant competitive renewable energy resources to reduce its still high dependence on fossil fuels. Decarbonizing the energy matrix would require significant investments in renewable energy, which should be largely shouldered by the private sector. It would also require deep regulatory reforms, including further efforts to liberalize the electricity sector. Fully exploiting this renewable energy potential could reduce Morocco´s reliance on imported fuels, help Moroccan firms’ competitiveness in neighboring markets that are embracing a green energy transition (most notably the European Union), and help create jobs. The strong earthquake that hit Morocco on September 8, exerting a heavy toll in terms of human lives and physical damages, highlights the importance of strengthening the country’s preparedness and resilience to natural disasters, including from climate change. |
| Date: | 2023–10–27 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/354&r=ene |
| By: | Miguel Cárdenas Rodríguez; Florian Mante; Ivan Haščič; Adelaida Rojas Lleras |
| Abstract: | Multifactor productivity is a comprehensive measure of productivity where the underlying production function accounts for multiple factor inputs, traditionally labour and produced capital. While single-factor productivity is intuitively simple, such measure offers a biased picture of the economy because it attributes all variation in output growth to a single factor input (e.g. consumption of fossil fuels or material resources) while the role of other factors is ignored. Multifactor productivity aims at addressing this shortcoming, and as such it is a valuable component of the OECD set of Green Growth headline indicators. This paper presents further progress in measuring the EAMFP and related growth accounting indicators in 52 countries for 1996-2018. An important novelty is the inclusion of renewable natural resources such as land, timber and fisheries, and ecosystem services such as coastal and watershed protection. Exploratory results on accounting for renewable energy resources are also included. |
| Keywords: | air pollution, costs, ecosystem services, environmental accounting, exhaustible resources, forest, fossil fuels, greenhouse gases, income, indicators, land, minerals, multifactor productivity, natural capital, pollution, prices, production, renewable energy, renewable resources |
| JEL: | D24 O44 O47 Q2 Q3 Q5 Q52 Q53 Q56 |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envddd:2023/01-en&r=ene |
| By: | Wentao Yu (School of Economics and Management, Fuzhou University and Business School, University of Western Australia); Yanrui Wu (Business School, The University of Western Australia); Xiaolan Tan (School of Public Administration, Hohai University and School of Marxism, Fuzhou University); Xiumei Guo (School of Economics and Management, Fuzhou University) |
| Abstract: | The platform economy is growing fast in the world. Its expansion, exemplified by industry giants like Amazon, Airbnb, and Uber, is reshaping societal lifestyles and commercial business. However, its environmental impacts are uncertain. Currently, the relationship between e-commerce activities and environmental pollution has attracted a lot of attention. This paper attempts to construct a comprehensive theoretical model to investigate the nexus between e-commerce and regional environmental pollution, with a particular focus on the effects of air pollution and waste pollution. Fixed effect models and China’s provincial data during the period from 2008 to 2018 are employed to examine the roles of resource consumption and energy efficiency in such a nexus. The findings suggest that the development of e-commerce is linked to a reduction in regional air pollution through the channel of improving transportation energy efficiency. The results also show that e-commerce is associated with an increase in regional waste pollution due to the mechanism of resource consumption in the express packaging industry. As a result, the relationship between e-commerce and environmental pollution is quite complex at the regional level, transcending a binary distinction of solely positive or negative impacts. This paper contributes to a better understanding of the complex environmental impacts of e-commerce and helps governments design more efficient and targeted policies to reduce regional pollution. |
| Keywords: | e-commerce strategy; environmental pollution; energy efficiency; China |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:uwa:wpaper:23-11&r=ene |
| By: | Jacob Funk Kirkegaard (Peterson Institute for International Economics) |
| Abstract: | The European Union managed to overcome Russian energy blackmail in 2022 and used the political motivation from this national security crisis to accelerate its decarbonization process. The planned dramatic increase in the scope of carbon pricing in the European Union can herald the total decarbonization of sectors covered in the EU Emissions Trading System and expand into important new ones. The interplay between the EU carbon border adjustment mechanism (CBAM) and the US Inflation Reduction Act may cause transatlantic trade friction. But these two approaches could also offer a path to greater cooperation. Kirkegaard outlines proposals for how both the European Union and the United States can implement additional policies to secure their comprehensive decarbonization. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:iie:pbrief:pb23-13&r=ene |
| By: | Ms. Zeina Hasna; Ms. Florence Jaumotte; Jaden Kim; Samuel Pienknagura; Gregor Schwerhoff |
| Abstract: | Innovation in low-carbon technologies (LCTs), which is essential in the fight against climate change, has slowed in recent years. This Staff Discussion Note shows that a global climate policy strategy can bolster innovation in, and deployment of, LCTs. Countries that expand their climate policy portfolio exhibit higher (1) climate-change-mitigation-patent filings, (2) LCT trade flows, and (3) “green” foreign direct investment flows. Importantly, boosting innovation in, and deployment of, LCTs yields medium-term growth, which mitigates potential costs from climate policies. This note stresses the importance of international policy coordination and cooperation by showcasing evidence of potential climate policy spillovers. |
| Keywords: | Low-carbon technologies; green innovation; technological diffusion and deployment; environmental policies; economic performance; portfolio exhibit; green FDI inflow; Policy implication; LCT trade; policy coordination; Climate policy; Foreign direct investment; Emerging and frontier financial markets; Climate change; Global |
| Date: | 2023–11–06 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfsdn:2023/008&r=ene |
| By: | Tiffany Hutcheson; Sara Wilkinson |
| Abstract: | The adverse impact of climate change on the environment has seen the building industry adopt environmentally-friendly building codes. In Australia, new buildings are required to meet minimum standards in terms of their use of energy. Green Star certification recognises the energy, water and ventilation efficiency in buildings. More efficient energy use in buildings decreasing the impact on the environment. Society’s support for buildings being more environmentally-friendly can be influenced by their views on the environment. This study surveys university students on their attitude and behaviour in terms of the environment. Undergraduate and postgraduate students studying finance and building subjects were surveyed. These subjects cover topics on environmental decision making. The findings of the survey provide insights into the behavioural attitudes towards the environment by individuals. They expose whether action needs to be undertaken to improve society’s understanding of the positive impact energy efficient buildings have on the environment. |
| Keywords: | Behavioural attitudes; Environment; sustainability |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_204&r=ene |
| By: | Sirini Jeudy-Hugo; Sofie Errendal |
| Abstract: | The Mitigation Work Programme (MWP) was established at COP26 to urgently enhance mitigation ambition and implementation in this critical decade. This paper explores how the MWP could build on and amplify relevant existing efforts, within and outside the UNFCCC, to trigger the rapid scale up of mitigation efforts required to keep the temperature goal of the Paris Agreement within reach. As a multilateral platform backed by the legitimacy and convening power of the UNFCCC, the MWP could help to raise awareness of available tools and solutions, build momentum behind relevant ongoing mitigation-related initiatives without being prescriptive, and deliver more effective, targeted mitigation efforts across all fronts in the near-term. This paper also outlines potential options for the annual decision on the MWP which provides an important opportunity to maintain attention on the need to urgently scale up mitigation efforts and encourages learning-by-doing. The annual MWP decision could be structured around different mutually supportive elements including lessons learned from the MWP’s first year, follow-up from MWP activities and related mitigation commitments at previous COPs, synergies with other UNFCCC processes, and how to complement the global stocktake. |
| Keywords: | climate change, global dialogues, international co-operation, investment-focused events, just energy transition, Mitigation Work Programme, non-Party stakeholders, Paris Agreement, UNFCCC |
| JEL: | D63 F53 H70 O29 Q49 Q54 Q56 Q58 E22 |
| Date: | 2023–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:oec:envaab:2023/03-en&r=ene |
| By: | Wehrhöfer, Nils |
| Abstract: | I investigate how households and firms adjust their inflation expectations when experiencing an increase in their energy prices. I use monthly panel survey data in combination with a difference-in-difference approach to show that households increase their inflation expectations when they personally experience an increase in their electricity prices. This result is inconsistent with full-information rational expectations but can be rationalized by households extrapolating their personal experience. The effect is driven by low-income households, households who are uninformed about past inflation, and those not trusting the ECB. Due to households extrapolating, their inflation forecasts become less accurate and diverge more from professional forecasts. Contrary to households, firms do not extrapolate energy price increases to their inflation expectations. Thus, decision-makers in firms form their expectations similarly to high-income households. |
| Keywords: | inflation expectations, households, firms, energy prices, extrapolation |
| JEL: | D14 D22 D84 E31 Q41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bubdps:279809&r=ene |
| By: | Marcelo Cajias; Rebecca Restle |
| Abstract: | Knowledge of emission sources is essential to take measures in time to mitigate the subsequent effects on health and the environment. In general terms, substances that are harmful to health and the environment are called air pollutants. The World Health Organization (WHO 2022b) estimated ~ 37.000 premature deaths related to ambient air pollution in Germany in 2016. Air pollution is a concern for everyone, but its effects are not compensated, and the originator is not required to cover the costs. Several methods have been developed to determine these costs. In the context of air pollution, the revealed-preference method is considered as it "involves determining the value that consumers hold for an environmental good by observing their purchase of goods in the market that directly – or indirectly – relate to environmental quality". Based on a semiparametric hedonic regression this paper evaluates the impact of air quality on the asking rents in Berlin between 2018 and 2021. The rental income of apartments located in areas with low pollution was 2% higher than market average. Assets in areas with high pollution were offered at a discount between –2% and -6% in comparison with average assets. |
| Keywords: | Air pollution; Geostatistics; Residential Real Estate; semiparametric geographic hedonic models |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_50&r=ene |
| By: | Manuel T. Valdés; Mar C. Espadafor; Risto Conte Keivabu (Max Planck Institute for Demographic Research, Rostock, Germany) |
| Abstract: | -In late 2018, the government of Madrid instituted a low emission zone (LEZ) in the central district of the city, aiming primarily to alleviate traffic-related emissions and enhance air quality. Extensive research has documented the adverse effects of air pollution on academic performance. Consequently, the success of Madrid’s LEZ in reducing traffic-related emissions could potentially translate into improved performance among students schooled in the designated area. Through a difference-in-differences design, we demonstrate the policy's effectiveness in improving air quality during the four years following its implementation. Subsequently, we show a noteworthy increase of 0.17 standard deviations in the average EvAU scores (high-stakes examinations for university admittance) of high schools within the LEZ, a crucial advantage for gaining entry into the most competitive university programs. Importantly, our findings reveal positive spillover effects in the surroundings of the LEZ area and a larger effect the longer and earlier the exposure to cleaner air. In sum, our study offers compelling empirical evidence of the beneficial educational impacts resulting from the implementation of a low emission zone successful in improving air quality. |
| JEL: | J1 Z0 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:dem:wpaper:wp-2023-048&r=ene |
| By: | International Monetary Fund |
| Abstract: | This diagnostic mission, financed under a SECO Transformative Statistics Agenda two-year project (FY23-25), assessed country priorities in view of Ghana’s climate challenges and identified key indicators for development under the Environment and Climate Change Statistics Capacity Development Program. Discussions were conducted during plenary and bilateral sessions with key national stakeholders representing data compilers and users to take stock of work already undertaken on climate change related statistics for Ghana, ongoing capacity development initiatives with other agencies, policy needs and data gaps, and data sources. These discussions were facilitated by provision of introductory training on climate change indicators. Participating agencies included the Ghana Statistical Service (GSS), the Ministry of Finance, Ministry of Environment, Science, Technology, and Innovation (MESTI), Environment Protection Agency (EPA), Energy Commission, National Development Planning Commission (NDPC), and the Bank of Ghana. |
| Keywords: | Ghana; climate change statistics; air emissions accounts; energy accounts; environmental statistics; physical and transition risks; carbon footprints. |
| Date: | 2023–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:imf:imfscr:2023/355&r=ene |
| By: | Tesemma, Tewodros (Department of Economics, School of Business, Economics and Law, Göteborg University) |
| Abstract: | The extent of vehicle ownership is increasing in many <p> developing countries. Most of the increase takes place <p> through import of second-hand vehicles that are usually <p> fuel-inefficient and have poor emissions standards. This is <p> creating enormous environmental pressures, since most <p> developing countries also lack the necessary policies to <p> regulate the sector. This study investigates the effect of <p> a recent policy reform in Ethiopia that aimed at <p> encouraging adoption of cleaner vehicles. In March 2020, <p> Ethiopia introduced a new vehicle excise tax that linked the <p> excise tax rate to engine size and age of vehicles, <p> imposing lower rates on ‘fuel-efficient’ vehicles and higher <p> rates on ‘fuel-inefficient’ ones. Exploiting the <p> quasiexperimental nature of the reform and employing a <p> difference-in-differences design, the study investigates the <p> reform’s effect on vehicle ownership and composition of the <p> vehicles, and in reducing CO2 emissions. The results show <p> that while the reform has no significant effect on total <p> vehicle ownership, it has a significant effect in increasing <p> the adoption of newer vehicles. We also find no significant <p> increase in the adoption of smaller-engine vehicles. The <p> reformled to no significant reduction on CO2 emissions <p> intensity of the vehicles. The reform, however, <p> significantly increased adoption of small-engine but new <p> vehicles - relatively the most ‘fuel-efficient’ <p> alternatives. The results are robust to various robustness <p> checks. The study discusses the policy implications of the <p> results, especially for developing countries. |
| Keywords: | transportation; environment; policy instruments; developing countries |
| JEL: | H23 Q40 Q58 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:gunwpe:0838&r=ene |
| By: | Anthony J. Venables; Frederick Van Der Ploeg |
| Abstract: | In the presence of strategic complementarities stemming from peer effects in demand or from technological spill-overs, propagation and amplification mechanisms increase the effectiveness of climate policies. This suggests that climate goals can be met with smaller policy interventions. However, if there are multiple equilibria, radical and more ambitious climate policies are needed to shift the economy from a high-emissions to a low-emissions path.. Once the radical shift has taken place the transformative policies can be withdrawn. More generally, such policies can set in motion social, technological, and political tipping points. The rationale for such policies is strengthened due to key households, corporations and institutions being at the centre of networks, and thus radical climate policies should identify those agents and leverage them. Our proposals offer a complementary perspective to scholars that have emphasised insights from the literature on early warning signals to advocate sensitive intervention points to get more effective and more transformative climate policies. |
| Date: | 2022–11–03 |
| URL: | http://d.repec.org/n?u=RePEc:oxf:wpaper:990&r=ene |
| By: | Grzegorz Marcjasz; Tomasz Serafin; Rafal Weron |
| Abstract: | We propose a novel electricity price forecasting model tailored to intraday markets with continuous trading. It is based on distributional deep neural networks with Johnson SU distributed outputs. To demonstrate its usefulness, we introduce a realistic trading strategy for the economic evaluation of ensemble forecasts. Our approach takes into account forecast errors in wind generation for four German TSOs and uses the intraday market to resolve imbalances remaining after day-ahead bidding. We argue that the economic evaluation is crucial and provide evidence that the better performing methods in terms of statistical error metrics do not necessarily lead to higher trading profits. |
| Keywords: | Intraday electricity market; Probabilistic forecast; Path forecast; Prediction bands; Trading strategy; Neural networks |
| JEL: | C22 C32 C45 C51 C53 Q41 Q47 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ahh:wpaper:worms2301&r=ene |
| By: | Hokkanen, Topi |
| Abstract: | Carbon leakage is one of the major issues facing policymakers today when designing environmental regulation. While the empirical and trade literature on carbon leakage is rich, much less is known about the implications of carbon leakage risk on optimal regulatory policies under asymmetric information. To this end, I derive the optimal incentive compatible mechanism to regulate polluting firms under asymmetric information of both their abatement costs and carbon leakage risk, which I model as type-dependent outside options. The resulting regulatory distortions depend on the affiliation between the firm's abatement and relocation costs. The optimal policy is less strict than first-best whenever this affiliation is negative or mildly positive, whereas under strong positive affiliation I find a novel upwards distortion in the optimal policy. My results imply that rather than being a byproduct of unsuccessful regulation, carbon leakage may be the optimally induced outcome of incentive compatible regulation, contrasting with the received wisdom in policy debate. |
| Keywords: | carbon leakage, mechanism design, externalities, asymmetric information |
| JEL: | D62 D82 L51 Q54 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofrdp:279565&r=ene |
| By: | Leonardo Gambacorta; Salvatore Polizzi; Alessio Reghezza; Enzo Scannella |
| Abstract: | This study examines whether the level of environmental disclosure in banks' financial reports matches less brown lending portfolios. Using granular credit register data and detailed information on firm-level greenhouse gas emission intensities, we find a negative relationship between environmental disclosure and brown lending. However, this effect is contingent on the tone of the financial report. Banks that express a negative tone, reflecting genuine concern and awareness of environmental risks, tend to lend less to more polluting firms. Conversely, banks that express a positive tone, indicating lower concern and awareness of environmental risks, tend to lend more to polluting firms. These findings highlight the importance of increasing awareness of environmental risks, so that banks perceive them as a critical and urgent pressing threat, leading to a genuine commitment to act as environmentally responsible lenders. |
| Keywords: | green banking, brown lending, banking, environmental disclosure, environmental risks, climate change |
| JEL: | G20 G21 M41 Q56 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:bis:biswps:1143&r=ene |
| By: | Hokkanen, Topi |
| Abstract: | This paper discusses the externalities and market failures in cryptocurrency markets. In particular, I highlight the significant environmental externalities created by Proof-of-Work (PoW) cryptocurrencies, the most prominent of which is Bitcoin. The main goals of this paper are to quantify these externalities, illustrate the mechanisms by which they arise, and finally discuss feasible mechanisms to regulate them. Latest estimates show that Bitcoin mining consumes roughly the same amount of electricity as Argentina or Sweden, with commensurate carbon dioxide emissions. The two main factors driving these externalities are Bitcoin's electricity-intensive consensus protocol and Bitcoin prices, which directly influence mining incentives. Efficient supply-side regulation of these externalities is hamstrung by the internationally mobile nature of Bitcoin miners, creating a risk of carbon leakage and regulatory arbitrage in the absence of a global carbon tax. Moreover, the cryptocurrency market and exchanges themselves are to a high degree unregulated and opaque. This exacerbates the situation since cryptocurrency prices are directly linked to mining incentives. Instead of regulating the miners i.e. the supply side of the market, as the literature has broadly suggested, I recommend focusing on regulating the demand side, the exchanges and marketplaces, as a reasonable first step in the comprehensive regulation of cryptocurrencies. Cross-border coordination is likely to be a crucial aspect in mitigating the environmental externalities of cryptocurrencies. |
| Keywords: | forecasting, investment, Tobin's Q, discrete wavelets, bitcoin, cryptocurrency, externalities, crypto mining |
| JEL: | D62 E42 H23 Q54 Q58 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofecr:279702&r=ene |
| By: | Hanxin Zhao |
| Abstract: | Green ammonia is poised to be a key part in the hydrogen economy. This paper discusses green ammonia supply chains from a higher-level industry perspective with a focus on market structures. The architecture of upstream and downstream supply chains are explored. Potential ways to accelerate market emergence are discussed. Market structure is explored based on transaction cost economics and lessons from the oil and gas industry. Three market structure prototypes are developed for different phases. In the infancy, a highly vertically integrated structure is proposed to reduce risks and ensure capital recovery. A restructuring towards a disintegrated structure is necessary in the next stage to improve the efficiency. In the late stage, a competitive structure characterized by a separation between asset ownership and production activities and further development of short-term and spot markets is proposed towards a market-driven industry. Finally, a multi-linear regression model is developed to evaluate the developed structures using a case in the gas industry. Results indicate that high asset specificity and uncertainty and low frequency lead to a more disintegrated market structure, and vice versa, thus supporting the structures designed. We assume the findings and results contribute to developing green ammonia supply chains and the hydrogen economy. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.19498&r=ene |
| By: | Cesar Barreto; Robert Grundke; Zeev Krill |
| Abstract: | The green transformation of the economy is expected to lead to a sharp reduction in employment in carbon-intensive industries. For designing policies to support displaced workers, it is crucial to better understand the cost of job loss, whether there are specific effects of being displaced from a carbon-intensive sector and which workers are most at risk. By using German administrative labour market data and focusing on mass layoff events, we estimate the cost of involuntary job displacement for workers in high carbon-intensity sectors and compare it with the displacement costs for workers in low carbon-intensity sectors. We find that displaced workers from high carbon-intensity sectors have, on average, higher earnings losses and face stronger difficulties in finding a new job and recovering their earnings. Our results indicate that this is mainly due to human capital specificity, the regional clustering of carbon-intensive activities and higher wage premia in carbon-intensive firms. Workers displaced in high carbon-intensity sectors are older, face higher local labour market concentration and have fewer outside options for finding jobs with similar skill requirements. They have a higher probability to switch occupations and sectors, move to occupations that are more different in terms of skill requirements compared to the pre-displacement job, and are more likely to change workplace districts after displacement. Women, older workers and those with vocational degrees as well as workers in East Germany, experience particularly high costs in case they are displaced from high carbon-intensity sectors. |
| Keywords: | carbon-intensive sectors, difference-in-differences, green transition, human capital specificity, Job loss effect, labour displacement, labour market concentration, labour reallocation |
| JEL: | J24 J31 J42 J63 J64 J65 Q52 |
| Date: | 2023–11–13 |
| URL: | http://d.repec.org/n?u=RePEc:oec:ecoaaa:1774-en&r=ene |
| By: | Brückbauer, Frank; Cézanne, Thibault; Kirschenmann, Karolin; Schröder, Michael |
| Abstract: | On February 28, 2023, the European Union (EU) reached a political agreement on a future regulation of green bonds, the European Green Bond Standard (EU GBS). Last Friday, the European Parliament officially adopted this new regulation. The regulation aims to improve the effectiveness, transparency, comparability and credibility of the green bond market in the EU. In this policy brief, we evaluate the potential advantages and limits of this new regulation. The EU GBS certainly makes sense from a political point of view. It could become a reliable benchmark for evaluating the "greenness" of a bond that directly aligns with regulatory and political action. However, the EU GBS is unlikely to be widely accepted by market participants. The already existing market-based green bond standards seem to be well established. Apart from that, the EU GBS can be seen as a combination of some of those already existing labels, but with the additional obligation for issuers to provide some legally binding information in their prospectuses. The latter could indeed discourage green bond issuers from using the EU GBS. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewpbs:279678&r=ene |
| By: | Ombuya, Sherri; Shishlov, Igor; Michaelowa, Axel |
| Abstract: | The Paris Agreement reaffirmed the commitment to provide USD 100 billion in international climate finance to developing countries by 2020. This Working Paper delves into the history and challenges of international climate finance. We emphasize the complexities tied to diverse definitions and accounting practices, leading to disputes over climate finance figures, as well as the struggle of developed countries to meet the USD 100 billion annual target. With the need to mobilize finance for addressing loss and damage (L&D) gaining traction in UN climate negotiations, we examine how similar challenges may hinder progress on the L&D agenda. Furthermore, we stress the importance of fostering trust between donor and recipient countries in the context of financial support pledges under the Paris Agreement. We identify how key negotiation processes, like the New Collective Quantified Goal on Climate Finance (NCGG), have the potential to change the status quo. |
| Keywords: | International Climate Finance, Loss and Damage, Climate Finance Accounting, Adaptation Finance, Conference of the Parties (COP) |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:oefsew:279804&r=ene |
| By: | Sudries, Laura; Lapillonne, Bruno |
| Abstract: | This document is a contribution of ADEME and ECLAC to measurement of the progress in Latin America on energy policies related to Sustainable Development Goal 7 of the United Nations 2030 Agenda for Sustainable Development. The document was prepared within the framework of the Energy Efficiency Indicators Database project, which aims to contribute to technical capacity-building in the countries of the region to monitor their progress towards affordable, efficient, secure and modern energy. |
| Date: | 2023–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68653&r=ene |
| By: | JUNG, Jione (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | Korea plans to use voluntary cooperation under Article 6 of the Paris Agreement as a complementary measure to its domestic mitigation efforts. There is an urgent need to establish a plan to promote international emission reduction and to prepare specific implementation measures. The government needs to play a role in se-curing funding and providing support for international emissions reduction projects, as well as establishing laws and regulations to promote emissions reduction activities abroad. |
| Keywords: | Paris Agreement Artcle 6; NDC; ITMOs |
| Date: | 2023–11–02 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepwe:2023_039&r=ene |
| By: | Ilaria Piatti (Queen Mary University of London); Joel Shapiro (Said Business School, University of Oxford); Xuan Wang (SBE Vrije Universiteit Amsterdam and Tinbergen Institute) |
| Abstract: | We model investors that take into account the amount of public good that firms produce (e.g., by reducing carbon emissions) when making their portfolio allocation. In an equilibrium asset pricing model with production and public goods provision, we find that environmentally conscious investors invest more than others, invest more in clean firms, and may invest more in dirty firms. Whether clean firms exhibit CAPM alphas depends on the amount of systematic risk of the firm and its relative contribution to the public good. There is underprovision of the public good in equilibrium. Lower government provision may lead to a surge in investment and government provision may be dominated by green subsidies. Finally, we extend the model to analyze negative externalities, donations, and uncertainty regarding public good provision. |
| Keywords: | Sustainable finance, ESG investing, public good pro-vision, asset pricing |
| JEL: | G11 G12 H41 |
| Date: | 2023–11–17 |
| URL: | http://d.repec.org/n?u=RePEc:qmw:qmwecw:969&r=ene |
| By: | Estalia Rona Ratu Roy (Diponegoro University, Semarang, Indonesia Author-2-Name: Eri Dwi Wibawa Author-2-Workplace-Name: PT Hutama Karya (Persero), Jakarta, Indonesia Author-3-Name: Gregorius Aji Sentosa Author-3-Workplace-Name: PT Hutama Karya (Persero), Jakarta, Indonesia Author-4-Name: Ines Wahyuniati Riza Author-4-Workplace-Name: "PT Hutama Karya (Persero), Jakarta, Indonesia " Author-5-Name: Author-5-Workplace-Name: Author-6-Name: Author-6-Workplace-Name: Author-7-Name: Author-7-Workplace-Name: Author-8-Name: Author-8-Workplace-Name:) |
| Abstract: | " Objective - Air pollution is an environmental threat that significantly impacts human health as it can cause premature death to 7 million people every year. In 2010, human activities added at least 35 billion tons of carbon dioxide emissions to the atmosphere. Methodology/Technique - One opportunity to minimize this impact is environmentally friendly automotive technology. One example of such a solution is Toyota Motor Corporation's (TMC) research collaboration with BMW Group (since 2011), focusing on improving the performance and capacity of lithium-ion battery cells. Using an explanatory qualitative method and data from a deductive literature review, the author formulates indicators of the company's research success and collaboration impact. Finding - To support the success of the research, the authors use the Theory of International Economic Cooperation. This study argues that research cooperation in the automotive field based on green technology conducted by BMW Group and TMC can significantly impact the global economic sector Novelty - The benchmark for the success of corporate research cooperation between other countries in the future by determining a research agenda plan equipped with a market segment plan and adjusted to differences in regulations and culture. Type of Paper - Review" |
| Keywords: | Research Cooperation, BMW Group, TMC, Success Indicators, Collaboration Impact |
| JEL: | E30 E50 |
| Date: | 2023–09–30 |
| URL: | http://d.repec.org/n?u=RePEc:gtr:gatrjs:gjbssr636&r=ene |
| By: | Floris Blok; Angelika Brändle; Ante Busic; Franz Fuerst; Marius Zumwald |
| Abstract: | Using a hedonic regression, we examine the relationship between natural hazard exposure and residential rents using a sample of 18.339 dwellings in Switzerland. Hillslope debris flow and storm hazard are found to be associated with a significant discount across the study area. Flooding and surface runoff hazard are associated with significant discounts outside of urban areas, but results are inconsistent within urban areas. We explore some possible explanations for this finding. Results on the effect of avalanches, debris flow, landslides, hail and rockfall on rents are inconclusive. Exposure to heat is not associated with lower rents in Switzerland. Similarly, we find no evidence that increased exposure to flooding and surface runoff (in the form of living on the ground floor) is associated with lower rents relative to dwellings on higher floor levels. Furthermore, we find that the “MINERGIE” energy-efficiency rating is associated with a small premium depending on the general standard of the building. |
| Keywords: | Energy Efficiency; Hedonic Price Method; Natural hazards; Residential Rents |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_258&r=ene |
| By: | Ying-Hui Shao; Yan-Hong Yang |
| Abstract: | Drawing inspiration from the significant impact of the ongoing Russia-Ukraine conflict and the recent COVID-19 pandemic on global financial markets, this study conducts a thorough analysis of three key crude oil futures markets: WTI, Brent, and Shanghai (SC). Employing the visibility graph (VG) methodology, we examine both static and dynamic characteristics using daily and high-frequency data. We identified a clear power-law decay in most VG degree distributions and highlighted the pronounced clustering tendencies within crude oil futures VGs. Our results also confirm an inverse correlation between clustering coefficient and node degree and further reveal that all VGs not only adhere to the small-world property but also exhibit intricate assortative mixing. Through the time-varying characteristics of VGs, we found that WTI and Brent demonstrate aligned behavior, while the SC market, with its unique trading mechanics, deviates. The 5-minute VGs' assortativity coefficient provides a deeper understanding of these markets' reactions to the pandemic and geopolitical events. Furthermore, the differential responses during the COVID-19 and Russia-Ukraine conflict underline the unique sensitivities of each market to global disruptions. Overall, this research offers profound insights into the structure, dynamics, and adaptability of these essential commodities markets in the face of worldwide challenges. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.18903&r=ene |
| By: | Nour Nassar (Vilnius Gediminas Technical University); Wadim Strielkowski (UC - University of California) |
| Abstract: | The purpose of the article is to outline the relationship between the green management aspects in the financial sector that lead to the green competitiveness from the external stakeholders' perspective. The methodology used in this study is based on the Preferred Reporting Items for Systematic reviews and Meta-Analyses for Scoping Reviews (PRISMA-SCR) approach seeking to develop a greater understanding of relevant terminology, core concepts, and key factors affecting the transition process towards the green financial sector. The main outcome of this research is constructing a model of transition towards the green financial sector for gaining green competitiveness in which the external stakeholders' perspective hass been emphasized. This study creates a research tool that can be used for weighting green managerial aspects from the external stakeholders' point of view. While performing this study, the authors were focusing on the Middle East area which constitutes the main limitation of this research. Therefore, more attention and focus on other geographical areas might be necessary for more accuracy. |
| Keywords: | transition, sustainable development, green competitiveness, green management, financial sector, stakeholders |
| Date: | 2022–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04242575&r=ene |
| By: | Charles M. Kahn |
| Abstract: | Russia’s recent decree to 'unfriendly' buyers of its natural gas may not make a great deal of difference in economic terms. |
| Keywords: | Russian invasion of Ukraine; natural gas; Russian ruble |
| Date: | 2022–04–08 |
| URL: | http://d.repec.org/n?u=RePEc:fip:l00001:94129&r=ene |
| By: | Fanchao Liao; Jaap Vleugel; Gustav B\"osehans; Dilum Dissanayake; Neil Thorpe; Margaret Bell; Bart van Arem; Gon\c{c}alo Homem de Almeida Correia |
| Abstract: | Electric mobility hubs (eHUBS) are locations where multiple shared electric modes including electric cars and e-bikes are available. To assess their potential to reduce private car use, it is important to investigate to what extent people would switch to eHUBS modes after their introduction. Moreover, people may adapt their behaviour differently depending on their current travel mode. This study is based on stated preference data collected in Amsterdam. We analysed the data using mixed logit models. We found users of different modes not only have a varied general preference for different shared modes, but also have different sensitivity for attributes such as travel time and cost. Compared to car users, public transport users are more likely to switch towards the eHUBS modes. People who bike and walk have strong inertia, but the percentage choosing eHUBS modes doubles when the trip distance is longer (5 or 10 km). |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2310.19036&r=ene |
| By: | Iveena Mukherjee |
| Abstract: | With the onset of climate change and the increasing need for effective policies, a multilateral approach is needed to make an impact on the growing threats facing the environment. Through the use of systematic analysis by way of C-ROADS and En-ROADS, numerous scenarios have been simulated to shed light on the most imperative policy factors to mitigate climate change. Within C-ROADS, it was determined that the impacts of the shrinking ice-albedo effect on global temperatures is significant, however differential sea ice melting between the poles may not impact human dwellings, as all regions are impacted by sea ice melt. Flood risks are also becoming more imminent, specifically in high population density areas. In terms of afforestation, China is the emerging leader, and if other countries follow suit, this can incur substantial dividends. Upon conducting a comprehensive analysis of global trends through En-ROADS, intriguing patterns appear between the length of a policy initiative, and its effectiveness. Quick policies with gradual increases in taxation proved successful. Government intervention was also favorable, however an optimized model is presented, with moderate subsidization of renewable energy. Through this systematic analysis of assumptions and policy for effective climate change mitigation efforts, an optimized, economically-favorable solution arises. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.03546&r=ene |
| By: | Qiulin Ke; Michael White |
| Abstract: | MEES is a measure to improve buildings’ energy efficiency. However, whether this legislation will achieve its goals is not certain. Since the implementation of MEES, limited evidence of possible impact and effectiveness has been published, especially there is no post-implementation evidence. In this paper, we investigate whether price differentials exist between the EPC-labeled office buildings and nonlabelled buildings; then we further investigate whether the premiums/discount are affected by the level of rating if the price differentials exist, especially for the ones below MEES. We use a much larger sample of office buildings across England and Wales. We use the data of the office buildings, their hedonic features, and the rents from Costar. The EPCs are from data from the Ministry of Housing, Communities and Local Government with which the EPC assessment and rating reports are registered. The proportion of energy performance-certified buildings in our sample has increased significantly to above 50% of the total sample. 12, 514 investment office buildings with the full information at the end of 2021 are included in the study, among them, 55% of the office buildings have valid EPC ratings. This is the first study of UK commercial real estate with such a large sample to examine the effect of the EPC on commercial real estate value and provide some post-implementation evidence of the effectiveness of the MEES regulation. |
| Keywords: | EPC; Office Building; rental premium; UK |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_341&r=ene |
| By: | François J. Dessart (European Commission - JRC) |
| Abstract: | (1) GreenComp is the recently published European Sustainability Competence Framework, which identifies sustainability competences that learners need for a more sustainable society. (2) This policy brief uses behavioural insights and evidence to assess whether and how these sustainability competences can make learners behave in a more sustainable way. (3) GreenComp’s competences leverage several proven psychological drivers of sustainable behaviour, and also address psychological barriers that evidence links to unsustainable behaviour. (4) The sustainability competences identified in GreenComp can thus indeed help learners behave more sustainably. This review therefore confirms the potential of acquiring these sustainability competences to contribute to a more sustainable society |
| Keywords: | sustainability, skills, competences, green |
| Date: | 2022–12 |
| URL: | http://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc130950&r=ene |
| By: | Bianchetti, Luca; Catelén, Ana Laura |
| Abstract: | En Argentina, la mayor cantidad de gases efecto invernadero son producidos por el sector energético, de allí el interés de conocer cómo viene avanzando el proceso de la transición energética. En el presente trabajo se exhibe una descripción resumida de la evolución de la seguridad energética, una de las cuatro dimensiones que se proponen utilizar al representar la transición energética desde el enfoque de la triple sostenibilidad. Los resultados muestran que la participación de las energías renovables en la oferta interna y los indicadores del consumo de energía tienen un avance favorable, a diferencia de la dependencia neta de las importaciones que ha empeorado en la última década. |
| Keywords: | Recursos Energéticos; Fuentes de Energía Renovables; Argentina; |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:nmp:nuland:3966&r=ene |
| By: | Luciano Campi; Federico Cannerozzi; Fanny Cartellier |
| Abstract: | Coarse correlated equilibria (CCE) are a good alternative to Nash equilibria (NE), as they arise more naturally as outcomes of learning algorithms and they may exhibit higher payoffs than NE. CCEs include a device which allows players' strategies to be correlated without any cooperation, only through information sent by a mediator. We develop a methodology to concretely compute mean field CCEs in a linear-quadratic mean field game framework. We compare their performance to mean field control solutions and mean field NE (usually named MFG solutions). Our approach is implemented in the mean field version of an emission abatement game between greenhouse gas emitters. In particular, we exhibit a simple and tractable class of mean field CCEs which allows to outperform very significantly the mean field NE payoff and abatement levels, bridging the gap between the mean field NE and the social optimum obtained by mean field control. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.04162&r=ene |
| By: | Christopher Hautbois (Université Paris-Saclay); Michel Desbordes (Université Paris-Saclay) |
| Abstract: | Sport is one of the most popular social activities in the world. It is also one of the most thriving industries from an economic standpoint. The sport sector is at the crossroads of economic, political and social issues. For this reason, sport organisations have to consider sustainability as a major concern. When facing such major issues (environmental protection, social connections, the concern of business for society), sport can appear as the "most important insubstantial thing". But it could be seen both as the best and the worst example in terms of sustainability. This article addresses two complementary objectives. The first one is to provide an overview of the current state of sustainability-in-sport research over the last 20 years and demonstrate how this field became a major topic in the last 10 years. This has been done through a systematic search of existing academic research concerning sustainability in sport. The second is to offer an explanation of how the field of sport currently manages different sustainability-related issues. This has been accomplished by interviewing an industry panel, which also gives some perspectives for the future. |
| Keywords: | sustainability, sport, carbon footprint, event, industry, sport venues |
| Date: | 2023–08–01 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04252259&r=ene |
| By: | Vogel, Henrik |
| Abstract: | The fashion industry is considered one of the most relevant industries worldwide. At the same time, however, it is repeatedly accused of irresponsible behavior toward the environment and society. For fashion brands who identify Generation Z as an attractive customer target group, the increasing consumer sensitivity for environmental protection and corporate social responsibility (CSR) could offer promising potential for differentiation. Although this assumption is frequently cited, there has been surprisingly little research to date. In a quantitative-empirical study among n = 157 members of Generation Z in Germany, the impact, a) attitude toward responsible fashion consumption and b) environmental concern were analyzed. The results show that both, attitudes towards responsible fashion consumption and environmental concern have a positive effect on the intention to buy clothes from CSR-driven fashion brands. Furthermore, environmental concern has a reinforcing effect on the attitude-intention relationship. Recommendations for managerial practice and ideas for possible future research are derived from the results. The work is intended to contribute to a deeper understanding of the responsible fashion consumption behavior of Generation Z in Germany. |
| Keywords: | brand choice, consumer behavior, corporate social responsibility (CSR), environmental concern, fashion, Generation Z, purchase intention |
| JEL: | M14 M31 L67 L81 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iubhma:279795&r=ene |
| By: | Lee, So Jeong |
| Abstract: | En julio de 2021, la Comisión Europea presentó el paquete Fit for 55 con el objetivo de reducir las emisiones de gases de efecto invernadero en la Unión Europea en al menos un 55% para 2030. Este paquete incluye el mecanismo de ajuste fronterizo de carbono (CBAM) dirigido inicialmente al cemento, fertilizantes, hierro, acero, aluminio, electricidad e hidrógeno. La introducción de este impuesto transfronterizo al carbono ha generado debates a nivel mundial y ha suscitado preocupaciones sobre la posibilidad de que se convierta en una vía para el lavado verde, así como sobre acusaciones de proteccionismo y neocolonialismo climático atribuidas a la Unión Europea. A pesar de que se espera que su impacto en la subregión sea limitado, es fundamental que los países se preparen para esta iniciativa y futuras acciones similares. Esto implica la implementación de políticas laborales y el respaldo a los sectores más vulnerables. Asimismo, la coordinación de políticas comerciales y de adaptación al cambio climático, así como la creación de alianzas regionales, desempeñan un papel fundamental en la respuesta a los desafíos climáticos que se avecinan. |
| Date: | 2023–10–23 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68639&r=ene |
| By: | Justin Larouze (Mines Paris - PSL (École nationale supérieure des mines de Paris) - PSL - Université Paris sciences et lettres); Etienne Martin (ICMCB - Institut de Chimie de la Matière Condensée de Bordeaux - UB - Université de Bordeaux - Institut Polytechnique de Bordeaux - INC - Institut de Chimie du CNRS - CNRS - Centre National de la Recherche Scientifique); Pierre Calmon (LEMA-LIST - Laboratoire architecture Electronique, Modélisation et Analyse de données - DIN (CEA-LIST) - Département d'instrumentation Numérique - LIST (CEA) - Laboratoire d'Intégration des Systèmes et des Technologies - DRT (CEA) - Direction de Recherche Technologique (CEA) - CEA - Commissariat à l'énergie atomique et aux énergies alternatives - Université Paris-Saclay) |
| Abstract: | This communication reports on a study carried out in the context of the collaborative FOEHN project (Human and Organizational Factors in Non-Destructive Evaluation) supported by the French National Research Agency. The motivation of this project comes from the observation that human and Organizational factors (HOF) are not sufficiently considered by the NDT community. Its goal is to analyse and model the influence of the HOF on selected cases of study in the perspective of a better evaluation of the performance of inspections. The communication is focused on a radiographic test (RT) case of study in which it appeared that several successive inspections had failed to detect an existing in-service defect. The analysis and modelling of HOF related to interpretation of films has been achieved in the framework of the CREAM (Cognitive and Reliability and Error Analysis Method). A survey has been conducted during the training and the maintaining of the proficiency of NDT (Non Destructive Testing) operators. This was followed by a non-participant observation of operators on site and several individual interviews including a sample of people covering the main organizational and hierarchical roles (eg. project management, management, operations, invigilation). The exchange with the HOF experts resulted in a hierarchical analysis of "radiogram interpretation" tasks (31 sub-tasks) and a list of contextual and organizational factors that may affect the performance of interpretation of films by the operator. From such a description the CREAM method allows to determine critical tasks and probability of "errors" linked to a limited set of "Common Performance Conditions" (CPC). The first conclusions of this study are that the model CREAM seems well-adapted to the estimation of the impact of HOF on NDT performances. The next phases should be to apply it to other tasks (here only radiograph interpretation) and techniques. The expected benefit of this study is to provide tools for the evaluation and optimisation of NDT implementation. |
| Keywords: | Nuclear Power Plant, Inspection, Radiography, Human Organisational Factors (HOF), Cognitive and Reliability and Error Analysis Method (CREAM), Non-Destructive testing, defect, reliability, signal processing |
| Date: | 2023–06–27 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04249459&r=ene |