|
on Energy Economics |
| By: | Dominique Bureau (Ministère de l'écologie et Ecole Polytechnique) |
| Abstract: | Existing gaps between territorial inventories of CO2 emissions and carbon footprints resulting from the final domestic demands of countries highlight the need to reduce imported emissions in developed countries. Generalized carbon border pricing would help but it requires avoiding the risk of its use as a trade barrier. However, such an import tax is not the unique possible approach and it is not a substitute for enhanced climate cooperation. In addition to the advantages usually put forward in terms of efficiency and mechanism design, the setting of a common carbon price, by the means of national taxes or a cap and trade mechanism, would present a threefold interest in this context: of discarding the objections of trade distortions against climate policies; of regulating imported emissions and internal emissions with the same level of ambition; and of acting both on the use of products as well as on their processes. Footprint taxation is then unnecessary, except with non-participants. But a Green Fund is needed for fair sharing of the burden of the efforts. Moreover, its rules must be adapted when integrating trade-related emissions, which has not been pointed out so far in the debates on Article 6 of the Paris Agreement. Corresponding conditions are specified here and it is underlined that this approach has also the advantage having to deal only with the net distributive effects involving trade in carbon. |
| Keywords: | carbon pricing, carbon footprint, climate cooperation, international trade, burden sharing |
| JEL: | Q54 Q56 |
| Date: | 2022–04 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2022.03&r=ene |
| By: | Andrea Amado; Koji Kotani; Makoto Kakinaka; Shunsuke Managi |
| Abstract: | People worldwide aim to reduce the adverse impacts from carbon emissions by adopting clean energy sources. While the literature identifies potential policies, such as carbon taxes, to address this issue, few studies have investigated how these policies can be concretely designed to facilitate cleaner-energy transition. We pose a question of how a carbon tax can be an effective instrument at transitioning to clean energy and hypothesize that providing a set of crucial information with respect to the tax persuades people to support it. We experimentally examine the determinants influencing public support for the introduction of a carbon tax via a vignette experiment with 1500 Japanese subjects. The vignette policy dimensions include “who pays the tax, †“how the tax gets paid, †“where the revenue gets used†and “how much the burden becomes, †each of which is introduced as a treatment with the baseline of “no information†provision. The results indicate that public support comparatively increases when the entities specified to pay are producers, when the tax revenue is used towards renewable energies and when the burden is sufficiently low. Overall, we demonstrate that a carbon tax can be an effective policy instrument for cleaner-energy transition, while garnering public support and ample revenue. To this end, it is necessary to inform people that the carbon-tax policy design targets producers and renewable energy along with a per-capita burden between 500 JPY to 3000 JPY a month. |
| Keywords: | carbon tax, clean energy, policy design, vignette experiment |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:kch:wpaper:sdes-2023-6&r=ene |
| By: | Mathilde Lebrand (World Bank, Prospects Group); Garima Vasishtha (World Bank, Prospects Group); Hakan Yilmazkuday (Department of Economics, Florida International University) |
| Abstract: | This paper investigates the effects of real energy price shocks on current account balances of 45 emerging market and developing economies. The investigation is based on country-specific structural vector autoregression models, where alternative specifications and identification schemes are considered for robustness purposes. The empirical results suggest that one percent of a positive real oil price shock results in up to 0.11 (0.08) percentage points of a cumulative improvement (deterioration) in current account balances of oil exporters (importers) after five years, whereas one percent of a positive real natural gas price shock results in up to 0.06 (0.04) percentage points of a cumulative improvement (deterioration) in current account balances of natural gas exporters (importers) after five years. Real coal price shocks result in higher current account balances of oil exporters and natural gas exporters, suggesting substitution of coal with oil and natural gas in such cases. When contributions of alternative real energy prices to the variance of current account balances are compared, real oil price shocks dominate those of real natural gas and real coal prices. The empirical results investigating the effects of oil demand versus oil supply shocks on current account balances suggest that oil demand shocks (rather than oil supply shocks) result in similar reactions of current account balances to real oil price shocks, supporting the view that the effects of oil demand shocks are different from those of oil supply shocks. The results are robust to the consideration of country-specific changes in real GDP and real effective exchange rates. |
| Keywords: | Current account balance, Oil prices, Natural gas prices, Coal prices, Energy prices |
| JEL: | F32 F41 Q41 Q43 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:fiu:wpaper:2305&r=ene |
| By: | Sven Damen |
| Abstract: | Mandatory energy performance certification for buildings is increasingly used in many countries and is seen as a key policy instrument for reducing energy consumption. Despite the widespread use, empirical evidence on whether or not mandatory certification reduces residential energy consumption is nonexistent. I study the introduction of mandatory energy performance certificates since November 2008 in Flanders, Belgium. I find that houses that were sold after mandatory certification consume 6% less energy. The lower energy consumption is mainly due to lower expenditures on fossil fuels. The results are robust to a whole range of possible alternative explanations such as pre-trends and changes in energy prices or subsidies over time. |
| Keywords: | Energy Efficiency; mandatory energy performance certificates; residential energy consumption |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_16&r=ene |
| By: | Ringstad, Ingrid Emilie Flessum (Dept. of Business and Management Science, Norwegian School of Economics); Tselika, Kyriaki (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | In this paper, we investigate the time and frequency dynamics of connectedness among green assets such as green bonds, clean energy markets, and carbon prices. Using daily price data, we explore return spillovers across these green financial markets by applying the novel framework on time and frequency dynamics proposed by Baruník and Krehlík (2018). This allows us to identify the direction of spillovers among our variables, and decompose the connectedness to differentiate between short-term and long-term return spillovers. Our results indicate that green bonds and carbon prices act as net receivers of shocks, but mainly in the short-term. We also observe a low level of connectedness among our clean energy markets across both low and high frequency bands, even during times of economic or political crisis. Additionally, there are periods in which connectedness between the clean energy assets is driven by the long-term. In periods of economic and political stability, carbon prices may also provide an interesting diversifying tool for short term investors. Our results should be of interest for investors and portfolio managers who focus on green financial markets, by strengthening the notion that green financial markets can offer diversification opportunities, for both short-term and long-term investors. This paper is the first to use this framework to investigate systematic risks within green financial markets. |
| Keywords: | Green finance; Green Bonds; Energy Markets; Connectedness; Time-Frequency space; Systemic Risk; Portfolio Management |
| JEL: | C52 G11 Q40 |
| Date: | 2023–11–07 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2023_018&r=ene |
| By: | Hendrik Mahlkow; Joschka Wanner |
| 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:ces:ceswps:_10729&r=ene |
| By: | Khondaker Golam Moazzem; Rafat Alam; Moumita A Mallick; ASM Shamim Alam Shibly |
| Abstract: | This study addresses the critical issue of Bangladesh’s pursuit of sustained and secure energy amidst its transition from a Least Developed Country (LDC) after 2026 and become a middle-income nation by 2050. The country has committed to different national and international platforms towards a substantial shift to renewable energy, aiming for 40% of its energy mix to be renewable by 2041, yet it is increasingly relying on expensive LNG-based power generation. The associated costs and impacts of this reliance on LNG, including economic, environmental, and social aspects, are examined’. |
| Keywords: | Power Sector, LNG, Renewable Energy, LDC, Energy-Mix, Bangladesh |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:pdb:opaper:149&r=ene |
| By: | Dominika Ehrenbergerova; Simona Malovana; Caterina Mendicino |
| Abstract: | We study how climate policies and significant events affect holdings of securities issued by low-carbon (green) and high-carbon (brown) firms. Using security-level data, we show that financial sector increased its holdings of green firms' securities and reduced its holdings of brown firms' securities following the Paris Climate Agreement and the 2019 UN Climate Action Summit. The COVID-19 pandemic had a similar effect, highlighting the role of the carbon risk premium. Conversely, the private non-financial sector increased its holdings of brown firms' securities, indicating a shift of transition risks toward this sector. Lastly, home bias and the environmental performance of holder and issuer countries significantly influence these effects. |
| Keywords: | Climate policies, COVID-19 pandemic, difference-in-differences, security-level data |
| JEL: | G11 G20 Q54 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:cnb:wpaper:2023/11&r=ene |
| By: | Nkosingizwile Mazwi Mchunu; George Okechukwu Onatu; Trynos Gumbo |
| Abstract: | This paper discusses the impact of electricity blackouts and poor infrastructure on the livelihood of residents and the local economy of Johannesburg, South Africa. The importance of a stable electricity grid plays a vital role in the effective functioning of urban infrastructure and the economy. The importance of electricity in the present-day South Africa has not been emphasized enough to be prioritized at all levels of government, especially at the local level, as it is where all socio-economic activities take place. The new South Africa needs to redefine the importance of electricity by ensuring that it is accessible, affordable, and produced sustainably, and most of all, by ensuring that the energy transition initiatives to green energy take place in a planned manner without causing harm to the economy, which might deepen the plight of South Africans. Currently, the City of Johannesburg is a growing spatial entity in both demographic and urbanization terms, and growing urban spaces require a stable supply of electricity for the proper functioning of urban systems and the growth of the local economy. The growth of the city brings about a massive demand for electricity that outstrips the current supply of electricity available on the local grid. The imbalance in the current supply and growing demand for electricity result in energy blackouts in the city, which have ripple effects on the economy and livelihoods of the people of Johannesburg. This paper examines the impact of electricity blackouts and poor infrastructure on the livelihood of residents and the local economy of Johannesburg, South Africa. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.08929&r=ene |
| By: | Cincotta, Costanza (Dept. of Business and Management Science, Norwegian School of Economics); Thomassen, Øyvind (Dept. of Business and Management Science, Norwegian School of Economics) |
| Abstract: | We use product-level data from 2000 to 2021 to evaluate Norway’s incentives for consumers to choose electric vehicles. These include taxes on fossil fuels, EV exemption from car purchase taxes, and other incentives, like discounts on road tolls. We find that undoing the incentive with the largest effect, the EV exemption from purchase taxes, would reduce the EV market share to 25 percent from the 66 percent observed in 2021, increase CO2 emissions of new cars sold by 170 percent, reduce their total weight by 22 percent, and reduce the number of new cars sold by 10 percent. |
| Keywords: | Environmental taxes; automobiles |
| JEL: | H23 L62 Q58 |
| Date: | 2023–11–08 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:nhhfms:2023_019&r=ene |
| By: | Tijmen van Kempen; Sven Damen |
| Abstract: | Mandatory energy efficiency disclosure policies are increasingly being used by governments around the world to reduce information-driven market failures. We exploit two policy changes in Flanders to study the causal effect of mandatory energy efficiency disclosure policies on house prices. We find that the introduction of mandatory energy performance certificates in 2008 that include an energy efficiency score did not affect the association between energy efficiency and sales prices, indicating that the policy change did not reduce information frictions. However, the introduction of EPC labels in 2019 affected the willingness to pay for energy efficiency. |
| Keywords: | Energy Consumption; energy performance certificates; Information Asymmetry |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_252&r=ene |
| By: | Duthie, Mike; Ankel-Peters, Jörg; Mphasa, Carly; Bhat, Rashmi |
| Abstract: | High hopes are pinned to mini-grids for rural electrification, especially in remote and sparsely populated areas. This note presents new evidence from a large evaluation of a US Millennium Challenge Corporation investment into mini-grids in Indonesia. We find that, a few years after commissioning, many mini-grids in the program do not operate properly, corroborating older concerns about the sustainability of mini-grids and off-grid energy systems that have been voiced for several years. Operational costs are typically high and electricity demand low. Minigrid programs should take these structural challenges into account, and especially abstain from overly optimistic electricity demand projections. |
| Keywords: | Energy access, sustainability, infrastructure, mini-grids |
| JEL: | H54 O13 O21 Q48 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:279545&r=ene |
| By: | Fang, Ximeng; Innocenti, Stefania |
| Abstract: | Green transitions require ambitious policy. This poses a political economy challenge. We study how social norms and economic reasoning jointly shape public views towards carbon taxation with uniform redistribution, using a representative survey experiment in the U.S. (N=2, 688). Video interventions that correct misperceived norms about climate action and/or explain the policy lead to an initial boost in support that fades away after several months and does not increase environmental donations. However, the combined intervention persistently reduces strong opposition by over 20%, pointing towards the joint roles of different motives in shifting the Overton window for climate policy. |
| Keywords: | climate policy, carbon pricing, policy understanding, social norms, pluralistic ignorance, information intervention, survey experiment |
| JEL: | Q54 Q58 D78 D91 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:amz:wpaper:2023-25&r=ene |
| By: | Gianluca Mattarocci; Gibilaro Lucia |
| Abstract: | Energy efficiency is nowadays one of the main targets for reaching sustainable economic growth in the medium long term. Real Estate is one of the main drivers of pollution, and more responsible investments may represent a reasonable strategy for reducing the negative impact on environment. Empirical analysis on the characteristics of real estate assets by REITs may allow identifying if market recognizes a premium or a penalization due to more responsible investment in the real estate industry. Results on a worldwide diversified sample show that currently there is no premium for investing in green oriented REITs and there is not a financial incentive related to REITs’ portfolios characterized by lower energy consumption and more usage of renewable energy. |
| Keywords: | Energy Consumption; pricing model; REIT |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_271&r=ene |
| By: | Kurt R. Brekke (Norwegian School of Economics (NHH), Department of Economics,); Odd Rune Straume (NIPE/Center for Research in Economics and Management, University of Minho, Portugal; and Department of Economics, University of Bergen, Norway); Lars Sørgard (Norwegian School of Economics (NHH), Department of Economics, Helleveien 30, 5045 Bergen, Norway; and Centre for Applied Research at NHH) |
| Abstract: | Energy markets are undergoing a radical shift towards renewable energy and network integration. We study the effects of integrating regions with storable (hydro) and intermittent (wind) energy sources in the presence of market power. Based on a two-period model with price fluctuations in the wind power region and bottlenecks in transmission of energy between regions, we show that a dominant firm (facing a competitive fringe) has an incentive to reallocate more hydropower production to the low-price period in order to induce higher prices in the high-price period. This incentive might be so strong that the bottleneck in the low-price period is removed and the two regions become de facto integrated. Paradoxically, we find that higher hydropower production capacity and/or larger transmission capacity can lead to higher (average) prices in the hydropower region due to the strategic responses by the dominant firm. Moreover, we find that the presence of market power in many cases enables the dominant firm to appropriate a larger share of the surplus from trade without harming domestic consumers, implying that stronger competition in the hydropower region might not be welfare improving. |
| Keywords: | Hydropower, trade, market power |
| JEL: | L13 L94 Q41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:nip:nipewp:10/2023&r=ene |
| By: | Chad P. Bown (Peterson Institute for International Economics); Kimberly A. Clausing (Peterson Institute for International Economics) |
| Abstract: | Recent efforts to reduce greenhouse gas emissions have revealed different policy priorities; the United States and China have emphasized subsidy-based approaches, and the European Union has emphasized carbon pricing. These divergent policy choices--some lowering energy costs, others raising them--raise concerns about industry competitiveness and have implications for upstream and downstream firms in supply chains. This paper identifies the trade tensions resulting from varying climate policy approaches and describes policy efforts to address them. It then describes the role of a rules-based trading system in tackling the challenges that these distinct policy approaches create, examining World Trade Organization (WTO) rules on subsidies, border measures, and export restrictions. The authors suggest that the United States, the European Union, and China prioritize reforms to those rules as a path forward for cooperation on trade and climate. Such an approach would be an important starting point toward creating a functioning multilateral system. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:iie:wpaper:wp23-8&r=ene |
| By: | Kristian S. Blickle; Rajashri Chakrabarti; Maxim L. Pinkovskiy |
| Abstract: | Climate change may pose two types of risk to the economy—from policies and consumer preferences as the energy system transitions to a lower dependence on carbon (in other words, transition risks) or from damages stemming from the direct impacts of climate change (physical risks). In this post, we follow up on our previous post that studied the exposure of the Federal Reserve’s Second District to physical risks by considering how transition risks affect different parts of the District and how they differentially affect the District relative to the nation. We find that, relative to other regions of the U.S., the economy of the Second District has considerably less exposure to fossil fuels. However, the cost of reducing even this relatively low economic dependence on carbon is still likely to be considerable. |
| Keywords: | Second District; climate change; transition risks |
| JEL: | E24 Q54 R10 |
| Date: | 2023–11–09 |
| URL: | http://d.repec.org/n?u=RePEc:fip:fednls:97308&r=ene |
| By: | Bauer, Michael; Huber, Daniel; Rudebusch, Glenn; Wilms, Ole (Tilburg University, School of Economics and Management) |
| Date: | 2022 |
| URL: | http://d.repec.org/n?u=RePEc:tiu:tiutis:6b117156-316d-440a-9fa5-b005b19eeb9b&r=ene |
| By: | Lingshan Xie; Stanimira Milcheva |
| Abstract: | This paper assesses the role of local greenness in attracting ESG capital into infrastructure deals in the US. Local greenness refers to state-level policies and incentives to increase energy efficiency, local capabilities to develop green assets, and local citizen’s green ideology. We identify ESG investors as infrastructure private equity (PE) fund management firms who have signed the United Nations Principles for Responsible Investment (UN PRI). We find that in states with higher greenness, ESG PE investors are more likely to be involved in an infrastructure deal. We show that green policies and incentives contribute to a boost in green capabilities and green ideology thus reducing political and regulatory risk for ESG investors interested in low-risk-low-return way of “greenifying” their portfolio. |
| Keywords: | ESG investors; infrastructure private equity funds; local greenness |
| JEL: | R3 |
| Date: | 2023–01–01 |
| URL: | http://d.repec.org/n?u=RePEc:arz:wpaper:eres2023_264&r=ene |
| By: | Guy Meunier (inrae); Jean-Pierre Ponssard (CNRS) |
| Abstract: | The energy transition requires the deployment of risky research and development (R&D) programs, most of which are partially financed by public funding. Recent recovery plans, associated with the COVID-19 pandemic and the energy transition, increased the funding available to finance innovative low-carbon projects and call for an economic evaluation of their allocation. This paper analyzes the potential benefit of using repayable advance: a lump-sum payment to finance the project that is paid back in case of success. The relationship between the state and innovative firms is formalized in the principal agent framework. Investing in an innovative project requires an initial observable capital outlay. We introduce asymmetric information on the probability of success, which is known to the firm but not to the state agency. The outcome of the project, if successful, delivers a private benefit to the firm and an external social benefit to the state. In this context a repayable advance consists in rewarding failure. We prove that it is a superior strategy in the presence of pure adverse selection. We investigate under what conditions this result could be extended in the presence of moral hazard. Implications for green industrial policy are discussed. |
| Keywords: | green innovation, public financing, information structure, conditional schemes, |
| JEL: | O38 D25 D82 H25 |
| Date: | 2023–07 |
| URL: | http://d.repec.org/n?u=RePEc:fae:wpaper:2023.04&r=ene |
| By: | Alkis Blanz (University of Potsdam, MCC Berlin); Ulrich Eydam (University of Potsdam); Maik Heinemann (University of Potsdam); Matthias Kalkuhl (University of Potsdam, MCC Berlin); Nikolaj Moretti (University of Potsdam, MCC Berlin) |
| Abstract: | The effects of energy price increases are heterogeneous between households and firms. Financially constrained poorer households, who spend a larger relative share of their income on energy, are particularly affected. In this analysis, we examine the macroeconomic and welfare effects of energy price shocks in the presence of credit-constrained households that have subsistence-level energy demand. Within a Dynamic Stochastic General Equilibrium (DSGE) model calibrated for the German economy, we compare the performance of different policy measures (transfers and energy subsidies) and different financing schemes (income tax vs. debt). Our results show that credit-constrained households prefer debt over tax financing regardless of the compensation measure due to their difficulty to smooth consumption. On the contrary, rich households tend to prefer tax-financed measures as they increase the labor supply of poor households. From an aggregate perspective, tax-financed measures targeting firms effectively cushion aggregate output losses. |
| Keywords: | energy prices, E-DSGE, fiscal policy, welfare |
| JEL: | E62 E64 H31 H32 Q43 Q52 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:pot:cepadp:70&r=ene |
| By: | Luigi Viola (University of Campinas, Campinas-SP, Brazil); Saeed Nordin (KTH Royal Institute of Technology, Stockholm, Sweden); Daniel Dotta (University of Campinas, Campinas-SP, Brazil); Mohammad Reza Hesamzadeh (KTH Royal Institute of Technology, Stockholm, Sweden); Ross Baldick (University of Texas at Austin, Austin, TX, USA); Damian Flynn (University College Dublin, Dublin, Ireland) |
| Abstract: | The expansion of variable generation has driven a transition toward a 100\% non-fossil power system. New system needs are challenging system stability and suggesting the need for a redesign of the ancillary service (AS) markets. This paper presents a comprehensive and broad review for industrial practitioners and academic researchers regarding the challenges and potential solutions to accommodate high shares of variable renewable energy (VRE) generation levels. We detail the main drivers enabling the energy transition and facilitating the provision of ASs. A systematic review of the United States and European AS markets is conducted. We clearly organize the main ASs in a standard taxonomy, identifying current practices and initiatives to support the increasing VRE share. Furthermore, we envision the future of modern AS markets, proposing potential solutions for some remaining fundamental technical and market design challenges. |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.02090&r=ene |
| By: | Roland Füss (University of St. Gallen, NTNU Business School, and Swiss Finance Institute); Kathleen Kürschner Rauck (University of St. Gallen; Swiss Finance Institute); Alois Weigand (University of St. Gallen) |
| Abstract: | We study how photovoltaic (PV) systems externally affect the prices of owner occupied houses and rents of residential dwellings. By creating a three-dimensional topographical model of Switzerland, we model each building’s view at surrounding PV installations and merge this data with housing price observations. In our hedonic difference-in-differences regressions, we provide evidence of how this view (impaired or unimpaired) on a PV system is associated with lower residential rents. This effect is stronger for the view at multiple PV systems rather than at a single one as well as in situations where seeing is more likely. However, price penalties are attenuated if rental dwellings have their own PV system or if neighboring properties have a view at comparably large PV systems which may benefit surrounding tenants in terms of electricity provision. Furthermore, by using municipal voting results on the Swiss Energy Act 2017 and the Swiss CO2 Act in 2021, we show how the attitude towards sustainability is driving the external effects of PV systems on rents. In contrast, we cannot document significant impacts of view on prices for owner-occupied housing. |
| Keywords: | Residential Real Estate; Rents; House Prices; Photovoltaic System; View |
| JEL: | Q40 R11 R32 |
| Date: | 2023–10 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp23100&r=ene |
| By: | Brown, David P. (University of Alberta, Department of Economics); Sappington, David E. M. (University of Florida) |
| Abstract: | In industries with extensive infrastructure needs and pronounced scale economies, consumers can be better served by well-designed regulation than by competition. Regulation that replicates the discipline of competitive markets can enhance the welfare of electricity consumers. However, replicating competitive discipline is challenging when regulators have limited knowledge of relevant industry conditions and when the regulators’ policy instruments are restricted. Incentive regulation attempts to harness the regulated firm’s superior knowledge of industry conditions to achieve regulatory objectives. This paper reviews key principles of incentive regulation, and examines how incentive regulation can be designed to enhance performance in the electricity sector. |
| Keywords: | Incentive Regulation; Electricity |
| JEL: | L51 L94 Q40 Q48 |
| Date: | 2023–11–16 |
| URL: | http://d.repec.org/n?u=RePEc:ris:albaec:2023_010&r=ene |
| By: | Scott Alan Carson; Wael M. Al-Sawai; Scott A. Carson |
| Abstract: | Regression model error assumptions are essential to estimator properties. Least squares model parameters are consistent and efficient when the underlying error terms are normally distributed but yield inefficient estimators when errors are not normally distributed. Partially adaptive and M-estimation are alternatives to least squares when regression model errors are not normally distributed. Vertically Integrated firms in the oil and gas industry is one industrial sector where error mis-specification is consequential. Equity returns are a common area where returns are not normally distributed, and inappropriate error distribution specification has substantive effect when estimating capital costs. Vertically Integrated Major equity returns and accompanying regression model error terms are not normally distributed, and this study considers error returns for Integrated oil and gas producers. Vertically Integrated firm returns and their regression model error are not normally distributed, and alternative estimators to least squares have desirable properties. |
| Keywords: | partially adaptive regression models, oil and gas industry, Integrated Majors, vertical integration |
| JEL: | G12 L71 L72 Q40 Q41 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10733&r=ene |
| By: | Gambacorta, Leonardo; Polizzi, Salvatore; Reghezza, Alessio; Scannella, Enzo |
| 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. JEL Classification: G20, G21, M41, Q56 |
| Keywords: | banking, brown lending, climate change, environmental disclosure, environmental risks, green banking |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20232872&r=ene |
| By: | Bonan, Jacopo; Cattaneo, Cristina; D'Adda, Giovanna; Tavoni, Massimo |
| Abstract: | Decisions with significant and long-lasting consequences can be influenced by conditions at the moment of choice, such as weather. Using administrative data from an online retailer, we examine whether temperature and other weather variables affect the search and purchase of energy-using durables, namely, air conditioners (ACs) and dryers. We observe more sales of ACs on hot days and fewer sales of dryers on hot, windy days. We find no impact for appliances whose usefulness is not affected by the weather. For AC, weather-induced searches and purchases are in lower-efficiency energy classes. Product search data allow us to look into the process leading up to purchase. Prospective AC buyers search less intensively when the temperature is higher, and the opposite holds for buyers of dryers when temperature and wind speed increase. Models of memory and attention can explain these behavioral patterns. Understanding these dynamics is important for designing energy-efficiency policies, given the energy needs of cooling technologies and their increased demand and usefulness in a rapidly warming world. |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:rff:dpaper:dp-23-43&r=ene |
| By: | César Ducruet; Hidekazu Itoh; Bárbara Polo Martin; Mame Astou Séné; Mariantonia Lo Prete; Ling Sun; Hidekazu Itoh; Yoann Pigné |
| Abstract: | Despite the skyrocketing growth of environmental studies in recent decades about ports and shipping, the local health impacts of ports remain largely under-researched. This article wishes to tackle this lacuna by statistically analyzing data on global shipping flows across nearly 5, 000 ports in 35 OECD countries between 2001 and 2018. The different traffic types, from containers to bulks and passengers, are analyzed jointly with data on natural conditions, air pollution, socio-economic features, and public health. Main results show that port regions pollute more than non-port regions on average, while health impacts vary according to the size and specialization of port regions. Three types of port regions are clearly differentiated, of which industrial, intermediate, and metropolitan port regions. |
| Keywords: | health; maritime transport; air pollution; port region; vessel movements |
| JEL: | I15 Q53 Q56 R11 R40 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:drm:wpaper:2023-32&r=ene |
| By: | Mehrnaz Kouhihabibi; Erfan Mohammadi |
| Abstract: | This paper reviews the literature on biodegradable waste management in Germany, a multifaceted endeavor that reflects its commitment to sustainability and environmental responsibility. It examines the processes and benefits of separate collection, recycling, and eco-friendly utilization of biodegradable materials, which produce valuable byproducts such as compost, digestate, and biogas. These byproducts serve as organic fertilizers, peat substitutes, and renewable energy sources, contributing to ecological preservation and economic prudence. The paper also discusses the global implications of biodegradable waste management, such as preventing methane emissions from landfills, a major source of greenhouse gas, and reusing organic matter and essential nutrients. Moreover, the paper explores how biodegradable waste management reduces waste volume, facilitates waste sorting and incineration, and sets a global example for addressing climate change and working toward a sustainable future. The paper highlights the importance of a comprehensive and holistic approach to sustainability that encompasses waste management, renewable energy, transportation, agriculture, waste reduction, and urban development. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2311.08678&r=ene |
| By: | Lialiouti, Georgia; Poignet, Raphael; Di Maio, Carlo; Dimitropoulou, Maria; Farkas, Zoe Lola; Houben, Sem; Plavec, Katharina; Verhoeff, Eline Elisabeth Maria |
| Abstract: | We examined the net-zero commitments made by Global Systemically Important Banks (G-SIBs). In recent years, large banks have significantly increased their ambition and now disclose more details regarding their net-zero targets. There is also growing convergence, with the vast majority of G-SIBs now being part of net-zero alliances. Despite this progress, some practices should be further improved. We assessed climate-related risks disclosures publicly available for G-SIBs in 2022. The paper gives an overview about potentially problematic disclosure practices with regards to their net-zero commitments. It identifies and discusses a number of observations, such as the significant differences in sectoral targets used despite many banks sharing the same goal, the widespread use of caveats, the missing clarity regarding exposures to carbon-intensive sectors, the lack of clarity of “green financing” goals, and the reliance on carbon offsets by some institutions. The identified issues may impact banks’ reputation and litigation risk and risk management. The paper explains how the introduction of comparable international rules on climate disclosure and the introduction of transition plans, as envisaged and partly already in place in the European Union, could help mitigate these risks. JEL Classification: G2, G21, G28, Q5, Q54 |
| Keywords: | climate scenarios, disclosures, greenwashing, litigation risk, net-zero commitments, transition plans |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbops:2023334&r=ene |
| By: | Andor, Mark Andreas; Dehos, Fabian; Gillingham, Kenneth; Hansteen, Sven; Tomberg, Lukas |
| Abstract: | The pricing of public transportation is a frequently debated subject, and a notable current trend is leaning towards flat-rate pricing. In the previous year, Germany introduced a flat-rate ticket, enabling individuals to access public transportation across the entire country for just 9 euros per month during the months of June through August. In this paper, we first examine the extent to which the 9-Euro Ticket policy was able to induce a shift from cars to public transport. To this end, we evaluate the policy's impact on mobility behavior and emissions, and compare our results with other analyses of the policy that use different empirical approaches. The combined evidence shows that the flat-rate access induced only a marginal shift from car to public transport. The 9-Euro Ticket has primarily been used to expand personal mobility rather than to substitute between modes of transportation. In a further step, we subject the 9-Euro Ticket to a cost-benefit analysis based on its achieved carbon reduction. When compared to other climate policies, the costs appear disproportionately high. We use these results as a starting point to discuss flat-rate pricing for public transport in conjunction with evidence from programs in other European cities and insights from economic theory. Synthesizing the collected sources, we conclude that there are better options. Instead of a flat-rate ticket, we call for a cheap and dynamic public fare system that prices peak times higher than off-peak times to avoid overcrowding during peak hours. At the same time, a dynamic road pricing system should be introduced. This would further reduce the negative externalities of driving, generate revenues to support public transport, and provide a stronger incentive to switch from car to public transport. |
| Keywords: | Public transport, dynamic pricing, congestion charging, road pricing, flat-rate tariffs, 9-Euro ticket |
| JEL: | R48 Q48 Q51 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:rwirep:279544&r=ene |
| By: | Erik Arnold; Caroline Paunov; Sandra Planes-Satorra; Sylvia Schwaag Serger; Luke Mackle |
| Abstract: | This paper discusses five innovation policy imperatives critical to achieving green and digital transitions: coordinated government, stakeholder engagement, policy agility and experimentation, directionality and support for breakthrough innovation. The paper provides policy examples from Germany, based on the OECD Review of Innovation Policy: Germany, and other countries to illustrate in what ways countries have addressed these imperatives. Overall, the quality and scale of these policy responses need to increase if transitions are to succeed. Open questions for future policy research are also highlighted. |
| Keywords: | agile policy, breakthrough innovation, country policy examples, digital transformation, digital transition, directionality, Germany, governance, green transition, innovation policy, policy experimentation, stakeholder engagement, STI policy |
| JEL: | O31 O33 O38 |
| Date: | 2023–11–30 |
| URL: | http://d.repec.org/n?u=RePEc:oec:stiaac:162-en&r=ene |
| By: | Waidelich, Paul; Krug, Joscha; Steffen, Bjarne |
| Abstract: | Policymakers regularly rely on public financial institutions and government bodies to provide loans to clean energy projects. However, the market failures that public loan provision addresses and the role it can play in a policy strategy that also features de-risking measures, such as interest rate subsidies, remain unclear. Here, we develop a model of banks providing loans to clean energy projects that use a novel technology. Early-stage loans build up financing experience that spills over to peers and hence is undersupplied by the market. In addition to this cooperation problem, bankability requirements can result in a coordination failure where the banking sector remains stuck in an equilibrium with no loans for the novel technology, although a preferable equilibrium with loans exists. Public provision of early-stage loans is inferior to de-risking instruments when solving the cooperation problem because it crowds out private banks' loan provision. However, public loan provision can more effectively resolve the coordination failure by pushing the banking sector to a better equilibrium, ideally in combination with additional de-risking measures to internalize learning spillovers. |
| Keywords: | Energy transition, state investment bank, government loans, credit guarantees, multiple equilibria |
| JEL: | G21 H81 Q48 Q55 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:279551&r=ene |
| By: | Gianluca Biggi; Andrea Mina; Federico Tamagni |
| Abstract: | Using a firm-level dataset from the Spanish Technological Innovation Panel (2003-2016), this study explores the characteristics of environmentally innovative firms and quantifies the effects of pursuing different types of environmental innovation strategies (resource-saving, pollution-reducing, and regulation-driven innovations) on sales, employment, and productivity dynamics. The results indicate, first, that environmental innovations tend to be highly correlated with firms’ technological capabilities, although to varying degrees across types of environmental innovation, whereas structural characteristics are less significant. Second, we observe heterogeneous effects of different types of environmental innovation on performance outcomes. We find no evidence that any type of environmental innovation fosters sales growth while pollution-reducing and regulation-driven innovations boost employment growth. Moreover, both resource-saving and pollution-reducing innovations bring about productivity advantage. |
| Keywords: | Environmental Innovation; Green Investments, Resource-saving, Pollution-reduction, Envi- ronmental compliance; Firm performance. |
| Date: | 2023–11–20 |
| URL: | http://d.repec.org/n?u=RePEc:ssa:lemwps:2023/42&r=ene |
| By: | Angstmann, Marius; Gärtner, Stefan; Angstmann, Marius |
| Abstract: | Zur Erreichung der Klimaschutzziele spielt der Gebäudesektor eine zentrale Rolle. - Der Fokus hierbei darf nicht allein auf Effizienz in der Nutzungsphase liegen. - Auch die Erstellung von Gebäuden trägt in hohem Maße zu CO2-Emissionen bei. - Ferner ist zu befürchten, dass neue Gebäude im Betrieb weniger effizient sind, als erwartet. - Hinzu kommen andere Nachteile des Bauens, wie Flächenversiegelung und zunehmende Verkehrsströme, wenn die Gebäude in nicht integrierten Ortslagen errichtet werden. - Daher stellen sich zwei Fragen: Wie kann Neubau reduziert werden? Wie kann Neubau weniger CO2-intensiv erfolgen? - So gilt es trotz technischer und organisatorischer Innovationen weniger zu bauen und weniger Wohn- und Arbeitsraum in Anspruch zu nehmen. |
| Keywords: | Ressourceneffizienz, Sekundärmaterialien, Bauwirtschaft, Abrissmoratorium, Bauwende |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iatfor:279705&r=ene |
| By: | Joseph Ikechukwu Uduji (University of Nigeria, Nsukka, Nigeria); Elda Nduka Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Justitia Odinaka Nnabuko (University of Nigeria, Nsukka, Nigeria); Geraldine Egondu Ugwuonah (University of Nigeria, Nsukka, Nigeria); Josaphat Uchechukwu Onwumere (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | This paper critically examines the multinational oil companies' (MOCs) corporate social responsibility (CSR) initiatives in Nigeria. Its special focus is to investigate the impact of the global memorandum of understanding (GMoU) on addressing inequalities and empowering women for sustainable ecosystem management in the Niger Delta region of Nigeria. The paper adopts a survey research technique, aimed at gathering information from a representative sample of the population, as it is essentially cross-sectional, describing and interpreting the current situation. A total of 768 women respondents were sampled across the rural areas of the Niger Delta region. Results from the use of logistic regression model indicate that despite women’s unique and important responsibilities in the use and management of natural resources, women are typically less involved in the formal governance processes, resulting in their interests, goals, knowledge and capabilities being both under-represented and under-utilized. It also shows that the MOCs’ CSR using GMoU model has recorded significant success in addressing gender inequalities and enhancing the capacity of the rural women in natural resources and ecosystem management. The finding suggests that if the MOCs’ CSR targeted at addressing gender issue is increased by one unit, the odd ratio is almost 13 times as high. This implies that addressing gender –related barriers and challenges and championing equitable natural resource governance leads to better livelihoods outcomes. It concludes that business has an obligation to help in solving problems of public concern. |
| Keywords: | Gender, natural resource management, corporate social responsibility, multinational oil companies, sub-Saharan Africa |
| Date: | 2023–01 |
| URL: | http://d.repec.org/n?u=RePEc:exs:wpaper:23/069&r=ene |
| By: | - |
| Abstract: | This document is based on the contributions and presentations of the ministerial meeting of the Forum of Ministers and High-Level Authorities of Housing and Urbanism of Latin America and the Caribbean (MINURVI), organised by the Ministry of Territorial Development and Habitat of Argentina, which assumed the presidency of the Forum for the 2023 period. The meeting was held on 10 and 11 April 2023 at the Kirchner Cultural Centre, in the Autonomous City of Buenos Aires 28 member states attended the meeting along with representatives from ECLAC in its role as Technical Secretariat of MINURVI. During this meeting, authorities, leaders, experts in housing and urbanism, and development banks convened with the aim of addressing the issue of financing for climate change mitigation in cities. Strategies and alternatives to address the housing deficit and promote the development of value chains related to construction and sustainable housing were also discussed. The ministerial meeting provided an opportunity to discuss possible strategies for the creation of a green finance fund at the regional level. This fund would seek to expand the financing of projects and programmes with a significant impact on improving climate change resilience and/or reducing greenhouse gas emissions in urban areas. |
| Date: | 2023–10–31 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col043:68651&r=ene |
| By: | Véronique Blum (UGA - Université Grenoble Alpes); Charlotte Krychowski (LITEM - Laboratoire en Innovation, Technologies, Economie et Management (EA 7363) - UEVE - Université d'Évry-Val-d'Essonne - Université Paris-Saclay - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris], IMT-BS - MMS - Département Management, Marketing et Stratégie - TEM - Télécom Ecole de Management - IMT - Institut Mines-Télécom [Paris] - IMT-BS - Institut Mines-Télécom Business School - IMT - Institut Mines-Télécom [Paris]) |
| Abstract: | In their intent to define standards related to extractive activities, many accounting standard setters have addressed the following question: What estimate of future growth prospects is useful to investors in addition to balance sheet and income statement information? Our study uses the Ohlson model (1995) on a sample of 52 companies, listed over a period of 11 years (1996-2006) in order to test the relevance of 4 forward-looking vectors, as complements to the book value and net earnings : the optional values of oil reserves, the free cash flows, the capex and the crude oil price volatility. Our results suggest that a heuristic reserve value based on informational items contributing to a real option pricing is the most informative and least redundant forward-looking value. They question the usefulness of reporting of forward-looking results in the form of point estimates. |
| Abstract: | Alors qu'ils cherchaient à définir une norme spécifique aux activités extractives, de nombreux normalisateurs comptables ont tenté de répondre à la question suivante : quelle estimation des perspectives de croissance future est utile aux investisseurs en complément des informations issues du bilan et du compte de résultat ? Notre étude emploie le modèle d'Ohlson (1995) sur un échantillon de 52 entreprises cotées pendant une période de 11 ans (1996-2006) et examine la pertinence informationnelle de quatre vecteurs orientés vers le futur : la valeur optionnelle des réserves de pétrole, les flux de trésorerie disponibles, les capex et la volatilité du prix du pétrole brut. Nos résultats suggèrent qu'une valeur heuristique des réserves considérées comme une option réelle sur un volume de pétrole découvert est la plus informative et la moins redondante des valeurs prospectives testées. Ils remettent en cause l'utilité de la communication de résultats futurs sous forme d'estimations ponctuelles. |
| Keywords: | Accounting, Extractives industries, Petroleum industry, Financial evaluation, Petroleum reserves, Ohlson model, Comptabilité, Industries extractives, Evaluation financière, Réserves pétrolières, Modèle d'Ohlson |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-04280973&r=ene |
| By: | Jevan Cherniwchan; Nouri Najjar |
| Abstract: | We test the hypothesis that governments alter environmental policy in response to trade by studying NAFTA’s effects on the formation of environmental policy in the US House of Representatives between 1990 and 2000. We find that reductions in US tariffs decreased political support for environmental legislation. This decrease appears to be due to: (i) a reduction in support by incumbent Republican legislators in response to trade-induced changes in the policy preferences of their constituents, and (ii) changes in partisan representation in affected districts due to decreased electoral support for pro-NAFTA Democrats following the agreement. |
| Keywords: | NAFTA; trade liberalization; voting; environmental policy |
| JEL: | F18 F64 F68 Q56 Q58 |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:mcm:deptwp:2023-05&r=ene |
| By: | Carsten Andersen; Timo Hener |
| Abstract: | We analyze the effect of wind turbines on the prices of houses in their proximity. Utilizing the universe of Danish house transactions since 1992 and data on all turbines ever established in Denmark, we are able to control for individual house fixed effects. We distinguish between effects of proximity and shadow flicker from rotor blades partly covering the sun. Our results suggest that nearby turbines have a significant adverse impact on house prices, and this impact is notably more pronounced for taller turbines. Furthermore, homes affected by shadow flicker experience an additional decrease in value comparable to the effect of the tallest turbines. Our findings suggest a nuanced view regarding the local externalities of wind turbines that heavily depend on size and relative location. |
| Keywords: | wind turbines, house prices, shadow flicker |
| JEL: | R31 P18 Q42 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10749&r=ene |
| By: | Fischer, Andreas; Küper, Malte |
| Abstract: | Die EU setzt mit dem Net-Zero Industry Act (NZIA) den Rahmen für die Förderung grüner Technologien und gibt Zielmarken für die europäische Produktion solcher Anlagen aus. Während die EU-Pläne auch für den deutschen Anlagenbau große Potenziale versprechen, ist bisher noch unklar, wie diese Ziele bis 2030 erreicht werden sollen. |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:iwkkur:279685&r=ene |