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on Energy Economics |
| By: | Verde, Stefano F.; Di Cosmo, Valeria |
| Abstract: | This paper proposes a dynamic carbon tax (DCT) that stabilises gasoline prices by adjusting inversely to crude oil prices. Compared to a standard fixed-rate carbon tax, the DCT can be expected to cut more CO2 emissions while receiving greater public support. Therefore, it could be a useful instrument for accelerating the ecological transition. The analysis is articulated in three parts. First, we show how, in the context of vehicle choice decisions, any policy that reduces uncertainty about future gasoline prices improves the expected utility of more fuel-efficient vehicles relative to less efficient ones. Second, we show how a DCT could be designed to automatically stabilise gasoline prices and thereby reduce price uncertainty. Third, we conduct an econometric test for whether gasoline price volatility, considered as a proxy for price uncertainty, negatively affects vehicle fuel efficiency. Using microdata from the 2017 National Household Transport Survey, we test for negative correlation between gasoline price volatility and fuel efficiency of new vehicles sold in the US. Evidence of a negative correlation is indeed found despite limited volatility of gasoline prices in the study period. Further tests are warranted using data from different time periods and alternative model specifications. |
| Keywords: | Carbon taxation, Gasoline prices, Vehicle choice, Fuel efficiency, Energy transition |
| JEL: | H2 H23 H3 Q4 Q5 |
| Date: | 2024–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120485&r=ene |
| By: | Basaglia, Piero; Isaksen, Elisabeth; Sato, Misato |
| Abstract: | Carbon pricing is often paired with compensation to carbon-intensive firms to mitigate carbon leakage risk. This paper examines the causal impacts of compensation payments for indirect carbon costs embodied in electricity prices. We use confidential UK administrative microdata to exploit firm-level inclusion criteria in both difference-in-differences and regression discontinuity frameworks. Our findings suggest that compensated firms increased production and electricity use relative to uncompensated firms, with no significant effect on energy intensity. While compensation lowers leakage risk, it also implies large forgone opportunity costs of public funds and increased mitigation costs of meeting national emission targets. |
| Keywords: | carbon pricing; compensation schemes; competitiveness; electricity consumption |
| JEL: | Q52 Q58 Q40 Q41 H23 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122364&r=ene |
| By: | Singer, Gregor |
| Abstract: | The transition from traditional labor intensive to modern capital intensive production is a key factor for industrial development. Using half a million observations from Indian manufacturing plants, I analyze the effects of a secular decrease in industrial electricity prices through the lens of a model with technology choices and complementarities between electricity and capital inputs. Using instrumental variables, I show how lower industrial electricity prices can increase both labor productivity and electricity productivity. Apart from positive effects on firm economic and environmental performance, cost-price pass through significantly benefitted consumers, and the productivity improvements limited increases in carbon emissions. |
| Keywords: | industrial development; energy efficiency; electricity productivity; labor productivity; electricity prices; coal prices; incidence; climate policy |
| JEL: | Q41 D24 D20 O14 |
| Date: | 2024–02–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122365&r=ene |
| By: | Salomón García-Villegas (Banco de España); Enric Martorell (Banco de España) |
| Abstract: | How should bank capital requirements be set to deal with climate-related transition risks? We build a general equilibrium macro banking model where production requires fossil and low-carbon energy intermediate inputs, and the banking sector is subject to volatility risk linked to changes in energy prices. Introducing carbon taxes to reduce carbon emissions from fossil energy induces risk spillovers into the banking sector. Sectoral capital requirements can effectively address risks from energy-related exposures, benefiting household welfare and indirectly facilitating capital reallocation. Absent carbon taxes, implementing fossil penalizing capital requirements does not reduce emissions significantly and may threaten financial stability. During the transition, capital requirements can complement carbon tax policies, safeguarding financial stability and trading off long-run welfare gains against lower investment and credit supply in the short run. |
| Keywords: | climate risk, financial intermediation, macroprudential policy, bank capital requirements |
| JEL: | Q43 D58 G21 E44 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bde:wpaper:2410&r=ene |
| By: | pohit, sanjib; Bhattacharya, Anindya; Chaudhuri, Chetana; Beena, P.L.; Mathur, Somya; Pratap, Devender; Mallik, Hrushikesh; Meena, Mohit; Jain, Ritika; Thampi, Malavika |
| Abstract: | As India has embarked on the journey of fulfilling its net-zero emissions target by 2070, the states of India are steering up too to meet the target. The per capita emissions for Kerala are lower than the national average. The energy sector is the main contributor to GHG emissions in Kerala. A major share of 76 percent of electricity power is purchased from other states. When other states undergo an energy transition, the availability of imported electricity may be a challenge for Kerala. Hence, the State needs to harness its own potential for renewable energy sources and incorporate improved technologies leading to energy efficiencies in all sectors. Accordingly, this paper has undertaken integrated modelling (an approach with the primary objective of quantifying the gains and losses of low-carbon transitions and their financial implications). The integrated modelling approach involves soft linking of the macroeconomic top-down CGE model and bottom-up (Messageix) energy model. The integrated model is a recursive dynamic model with multiple periods of time. In this paper, we have undertaken a policy scenario in which (i) the imports of fossil-based electricity from other states of India are restricted to Kerala, (ii) 50 percent of the existing potential of renewable electricity by various modes is achieved in Kerala and the rest of India, and (iii) energy efficiency in all energy sectors is increased to the tune of 2.5 percent per annum along with 1 percent total productivity growth per annum in all sectors of the Kerala and India economies. Our results show that the reduced import of fossil fuel electricity without any policy intervention to strengthen the renewable energy sector would hamper growth. On the other hand, investment in renewable energy to facilitate a complete energy transition with self-reliance on energy for the state would expand the economy, increase the returns to the factors of production, and increase employment. The key message that comes out from our simulation is that the energy transition towards renewable energy will not take place without complementarity support polices towards this sector. Our observation is that energy transition may be a win‒win situation in the sense that growth and employment creation may be positive with suitable policy intervention. It must be mentioned that the paper focused only on the energy sector. The developed model may be used in the future to focus on the economic implications of other policies, such as carbon sequestration. |
| Keywords: | Low carbon pathway, Integrated Assessment model, Kerala, India, Energy transition |
| JEL: | Q42 Q43 Q47 |
| Date: | 2024–02–26 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120363&r=ene |
| By: | Khlil, Brahim (Independent researcher) |
| Abstract: | The paper, "Green Steel Blueprint: Mauritania's Strategic Pathway to Sustainable Industrial Leadership, " positions Mauritania at the forefront of a potential economic and industrial revolution through the development of a green steel industry. Despite its current status as an exporter of iron ore without domestic steel production, Mauritania is uniquely poised to leverage its abundant natural resources, including vast iron ore reserves and significant renewable energy potential, to pioneer sustainable steel production. Highlighting the economic context and recent discoveries of gas reserves alongside renewable energy initiatives, the paper advocates for the adoption of green hydrogen technology in steel manufacturing to reduce carbon emissions and align with global sustainability goals. It underscores the economic viability, environmental benefits, and strategic importance of transitioning to green steel production. Addressing challenges such as technological and financial hurdles, the paper recommends strategic actions including international collaborations and policy support to realize this vision. It suggests that Mauritania can not only diversify its economy and enhance its global standing but also contribute to the fight against climate change by embracing green steel production. |
| Date: | 2024–03–17 |
| URL: | http://d.repec.org/n?u=RePEc:osf:osfxxx:smzb7&r=ene |
| By: | Gourene, Grakolet (United Nations Economic Commission for Africa); Hamouda, Samia Mansour (United Nations Economic Commission for Africa (UNECA)); Brixiova, Zuzana (UNECA) |
| Abstract: | Decoupling economic growth from environmental degradation and climate change, increasing resource efficiency, and promoting both sustainable production and sustainable lifestyles is a challenge in North Africa, a region where even a relative decoupling of income growth and carbon (CO2) emissions has not been achieved. This chapter aims to examine recent trends in emissions and the main drivers of improvement in the region's carbon intensity (carbon emissions per unit of GDP), energy intensity (energy use per unit of GDP), and per capita emissions. It also analyzes the effect of policies such as energy taxes and energy standards on the energy efficiency of SMEs in North Africa and suggests actions and policies to encourage structural transformation and ensure better energy efficiency. |
| Keywords: | carbon emission, carbon intensity, energy intensity, inclusive growth, SMEs |
| JEL: | D22 G21 G32 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:iza:izadps:dp16854&r=ene |
| By: | James H. Stock; Matthew Zaragoza-Watkins |
| Abstract: | From 2015 to 2023, the United States transformed from a net importer of natural gas to the world's largest liquified natural gas (LNG) exporter. We find that this surge in LNG exports has reconnected U.S. gas prices to world market prices, after a hiatus of “shut-in” fracked gas. We estimate that the domestic gas price effect of this recoupling is comparable to a $30/ton carbon tax. For coal prices, which are coupled to gas through competition in the power sector, this effect is comparable to a $20/ton carbon tax. Using the NREL ReEDS model, we estimate that this recoupling reduces U.S. 2030 power sector CO2 emissions by roughly 145 million metric tons. These domestic estimates contribute to estimating the overall climate impact of LNG exports. |
| JEL: | Q41 Q48 Q54 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32228&r=ene |
| By: | Marco Ceccarelli (VU University Amsterdam); Stefano Ramelli (University of St. Gallen - School of Finance; Swiss Finance Institute) |
| Abstract: | We study expectations about the energy transition (climate transition beliefs) as drivers of “green” investment decisions and financial performance expectations. In a preregistered survey of U.S. retail investors (N=1, 007), we document considerable heterogeneity in climate transition beliefs at different horizons. More optimistic climate transition beliefs are associated with higher green expected financial performance and investments, especially for investors without strong pro-environmental preferences. A pre-registered information provision experiment (N=3, 003) provides causal evidence of the role of climate transition optimism in investment behavior. By influencing the availability of capital for green projects, the prevailing narratives and beliefs around the energy transition can have important self fulfilling properties. |
| Keywords: | Behavioral Finance, Climate Change, ESG, Expected returns, Heterogeneous beliefs, Information provision experiment, Survey, Sustainable finance. |
| JEL: | D14 H42 G18 P16 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:chf:rpseri:rp2422&r=ene |
| By: | Robert Addison; Giuseppa Ottimofiore; Costanza Caputi; Alberto Morales; Hamsini Shankar |
| Abstract: | To meet their international climate commitments and strengthen renewable energy production, many countries will require significant new investment in low emissions infrastructure. To deliver low emissions infrastructure at the necessary rate and scale, many countries recognise they need better ways of planning and regulating infrastructure and its value chains. This Working Paper describes the challenges and opportunities for using regulatory, stakeholder engagement and public procurement tools to help countries deliver more effective permitting. It provides international good practice case studies to help countries stimulate investment and reduce barriers for new, low emissions infrastructure so they can fulfil their international climate commitments while ensuring existing policy objectives. |
| Date: | 2024–04–09 |
| URL: | http://d.repec.org/n?u=RePEc:oec:govaaa:68-en&r=ene |
| By: | : Dubois, Loick (University Paris-Dauphine); Sahuc, Jean-Guillaume (Banque de France, University Paris-Nanterre); Vermandel, Gauthier (Ecole Polytechnique, Palaiseau and University Paris-Dauphine) |
| Abstract: | This paper studies the general equilibrium effects of carbon permit banking during the transition to a climate-neutral economy by 2050. The analysis highlights the critical role of permit banking in shaping the policy outcomes. |
| Keywords: | Emission trading systems, cap policies, carbon permit banking, environmental real business cycle model, occasionally-binding constraints, nonlinear estimation |
| JEL: | C32 E32 Q50 Q52 Q58 |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/20&r=ene |
| By: | Manuel Alejandro Cardenete; M. Carmen Lima; Ferran Sancho |
| Abstract: | We study the role that the productive structure plays in determining carbon dioxide (CO2) emissions by industry. Specifically, we distinguish and isolate the interdependencies originating from the structure of the demand for inputs from those resulting from the supply structure. This separation has the advantage of enabling a better identification of the causal origin of emissions and allows the establishment of a catalog of industries based on their characteristics as demanders or suppliers of inputs. This information, linked to the different nature of demand or supply, can be relevant for designing more effective emission containment measures. The empirical basis of the analysis utilizes input-output data for Spain in 2020, while the methodological platform is an adaptation of the hypothetical extraction method (HEM). |
| Keywords: | demand-induced emissions, supply-induced emissions, selective extractions |
| JEL: | C67 D57 Q51 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:bge:wpaper:1435&r=ene |
| By: | Corentin Roussel |
| Abstract: | Differentiated treatment of green credit risk in banks’ capital requirements to favor green transition generates lot of debates among European prudential regulators. The aim of this paper is to examine whether the key Basel 3 finalization instrument - the Output Floor - should be applied to green credit risk in order to ensure stability of banking system and promote green finance. To do so, we assess macrofinancial and environmental benefits of such green policy for the Euro Area through the lens of a general equilibrium model. We get three main results. First, when banks get transitory ’environmental awareness’, an Output Floor (OF) applied to brown credits only (i.e. a brown OF) faces a trade-off between limiting environmental aftermaths and reaching OF objectives (i.e reducing volatility of banks’ capital adequacy ratio). Second, to mitigate the prudential cost of this trade-off, brown OF should be joined with additional green financial policies such as green Quantitative Easing. Third, pollutant emissions tax erodes brown OF efficiency along financial and economic cycles but limits the welfare cost implied by pollution in the long run. |
| Keywords: | Output Floor, Credit Risk, Green Finance, Climate Change, DSGE. |
| JEL: | Q54 G21 E44 E51 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ulp:sbbeta:2024-07&r=ene |
| By: | Abir Khribich (Université Côte d'Azur, CNRS, GREDEG, France); Rami H. Kacem (Faculty of Economic Sciences and Management of Nabeul, University of Carthage, Tunisia; LEGI, Tunisia Polytechnic School); Damien Bazin (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | Numerous studies have been proposed in the literature to analyse the determinants of renewable energy consumption and their effects. Nevertheless, despite the various proposed methods and obtained results, nothing is known about which factors are most or least important. This paper proposes to contribute to the literature by comparing their effects and ranking them according to their importance. This additional information may be important when developing policies for energy transition. The proposed procedure is based on the estimation of a panel vector autoregressive (PVAR) model including simultaneously the commonly considered factors affecting renewable energy consumption in the literature, to be able to compare their effects. Next, impulse response functions are drawn, and variances decompositions are made to provide additional information about how renewable energy consumption responds to shocks in each of the considered factors. Empirical validation for 22 high-income countries reveals that financial development is the most important factor that can affect positively renewable energy consumption. Also, it is found that the response of renewable energy consumption to one shock in financial development is the strongest among the studied factors and lasts to the long run. The variance decompositions show that the contributions to the variation in renewable energy consumption are different from one factor to another. |
| Keywords: | Renewable energy consumption, determinant factors, comparative analysis, PVAR model, high-income countries |
| JEL: | Q20 Q28 Q48 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2024-08&r=ene |
| By: | Constantin, Tea |
| Abstract: | This work provides an ecosystem analysis of the past, present, and future of the biogas industry, from its environmental implications, to market dynamics, and future market expansion prospects. It is structured in four main sections: context, historical roots, market transitions, and future growth. Context presents climate implications of waste-related emissions, introduces biogas as a potent solution, and dives into the present-day favourable market ecosystem for this industry. Historical Roots highlights early drivers and policy instruments that favoured the industry’s nascence, however, also shaped its development in a way that later hindered growth. Market Transitions dives into the industrialization of biogas, detailing key factors that stimulated a transition to market-based approaches. Previously unidentified barriers for non-fossil-fuel industry players are presented. It then outlines recent global events’ favourable influence on stimulating increased attention to this sector. Future Growth delves into the expanded valorization routes for the inputs and outputs of biogas, alongside the mandates that will stimulate exponential demand for this sector’s future. In this, we conclude with how biogas can provide a cost competitive pathway to hydrogen when compared to the electrolysis pathway, which is currently standing at the forefront of global energy transition policy. In sum, this manuscript offers an ecosystem analysis of the biogas industry through the lens of its evolution across time, from past to future, particularly focusing on legal and market perspectives, to highlight this industry’s pivotal role in meeting future energy demands. |
| Date: | 2024–04–02 |
| URL: | http://d.repec.org/n?u=RePEc:osf:thesis:2znby&r=ene |
| By: | Abir Khribich (Université Côte d'Azur, CNRS, GREDEG, France); Rami H. Kacem (Faculty of Economic Sciences and Management of Nabeul, University of Carthage, Tunisia; LEGI, Tunisia Polytechnic School); Damien Bazin (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | This study introduces a pioneering approach marking the first comprehensive analysis explicitly designed to assess the technical efficiency of renewable energy consumption and its influencing factors. Based on data from 22 high-income countries covering the period 1996 to 2019 a Stochastic Frontier Analysis (SFA) was used to derive scores crafting a distinctive ranking of countries. Notably, Norway, Sweden, and Finland emerge as frontrunners, reflecting their efficiently robust approaches to renewable energy adoption. Empirical findings highlight the crucial role of financial development, revealing a significant and positive impact on increased renewable energy consumption efficiency. This is followed by other key factors such as institutional conditions and social development. Particularly, a non-linear impact was observed for other determinants, including trade openness, economic growth, and CO2 emissions. To explore more profoundly, the study projects six prospective scenarios, each exerting distinct influences on technical efficiency scores. Enhanced financial development, trade openness, and higher CO2 emissions are linked to elevated technical efficiency levels, albeit with variable effects among countries. Interestingly, increased growth in social development was associated to decreased technical efficiency scores, similarly, some countries experienced a counterproductive effect from a stimulated economic growth. Simulation results emphasize the imperative to address contextual variability, aiming to strike a balance between developmental objectives and optimizing the use of renewable energy. |
| Keywords: | Renewable energy consumption, Efficiency, Technical Efficiency, SFA, high-income countries |
| JEL: | Q20 Q28 Q48 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2024-09&r=ene |
| By: | Rami H. Kacem (Faculty of Economic Sciences and Management of Nabeul, University of Carthage, Tunisia; LEGI, Tunisia Polytechnic School); Abir Khribich (Université Côte d'Azur, CNRS, GREDEG, France); Damien Bazin (Université Côte d'Azur, CNRS, GREDEG, France) |
| Abstract: | The purpose of this paper is to explore how social development affects renewable energy consumption. The proposed methodology derives from the Social Development Index (SDI) which is calculated by aggregating several indicators associated with social well-being. In addition, the added value of this paper, compared to the literature, is to consider a possible non-linear relationship between social development and renewable energy consumption, based on the nonlinear Autoregressive Distributed Lag (ARDL) approach. Using Tunisian data for empirical validation, the proposed procedure provides original results. Indeed, it provides more details about the impact of increasing versus decreasing portions of social development on renewable energy consumption in the short and long run. Thus, it is found that renewable energy consumption is particularly sensitive to the decrease in social development. Indeed, according to our estimation and for the Tunisian case, a 1% decrease in social development leads to a decrease in renewable energy consumption by 3.235%. The proposed procedure merit to be validated for different cases and contexts. |
| Keywords: | ARDL, Capabilities, Causality, Renewable energy, Social development, Tunisia |
| JEL: | C20 Q20 Q28 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:gre:wpaper:2024-07&r=ene |
| By: | Ojo, Marianne |
| Abstract: | The US Inflation Reduction Act 2022, was signed into law in August 2022. It aims amongst other objectives, “to lower energy costs for families and small businesses, accelerate private investment in clean energy solutions in every sector of the economy – as well as nationally, strengthen supply chains, and create good paying jobs and new economic opportunities for workers.” According to the section, “Investing in Clean Hydrogen”, as provided for in the Inflation Reduction Act Guidebook (2023: see page 74 of 184), “Clean hydrogen constitutes a major component of President Biden’s plan to decarbonize the industrial sector. As well as providing $9.5 billion for clean hydrogen initiatives, through the Bipartisan Infrastructure Law, $1 billion was also set aside for a “Clean Hydrogen Electrolysis program”, to reduce the cost of hydrogen produced from clean electricity.” Further, $500 million was committed towards “Clean Hydrogen Manufacturing and Recycling/Initiatives” aimed at supporting equipment manufacturing and strong domestic supply chains for clean hydrogen. Having experienced inflationary levels at unprecedented record highs – globally, in recent months, the possible impacts of recent accommodative monetary policies will be considered in this paper. The paper will aim to highlight why addressing current inflation levels – and particularly through green energy techniques and technologies – which incorporate and embrace the use of green hydrogen, constitute a much welcomed approach in addressing current inflationary levels. |
| Keywords: | Inflation Reduction Act 2022; Green hydrogen; Green energy, green steel ; technologies; techniques; electrolysis |
| JEL: | F4 F43 F47 F6 F64 H3 P5 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120514&r=ene |
| By: | Afees A. Salisu (Centre for Econometrics and Applied Research, Ibadan, Nigeria; Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Ahamuefula E.Oghonna (Centre for Econometrics and Applied Research, Ibadan, Nigeria); Rangan Gupta (Department of Economics, University of Pretoria, Private Bag X20, Hatfield 0028, South Africa); Oguzhan Cepni (Copenhagen Business School, Department of Economics, Porcelaenshaven 16A, Frederiksberg DK-2000, Denmark; Ostim Technical University, Ankara, Turkiye) |
| Abstract: | In this paper, we employ the generalized autoregressive conditional heteroskedasticity-mixed data sampling (GARCH-MIDAS) framework to forecast the daily volatility of state-level stock returns in the United States (US) based on monthly metrics of oil price uncertainty (OPU), and relatively broader energy market-related uncertainty index (EUI). We find that over the daily period of (February) 1994 to (September) 2022 and various forecast horizons, in 37 out of the 50 states, the GARCH-MIDAS model with EUI can outperform the benchmark, i.e., the GARCH-MIDAS-realized volatility (RV), which in turn, holds for at most 18 cases under OPU. The statistical evidence is further strengthened when we are able to detect higher utlilty gains delivered for 42 states by the GARCH-MIDAS-EUI in comparison to the GARCH-MIDAS-RV. Our findings have important implications for investors and policymakers. |
| Keywords: | Monthly Oil Price and Energy Market Uncertainties, Daily State-Level Stock Returns Volatility, GARCH-MIDAS, Forecasting |
| JEL: | C32 C53 G10 Q02 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:pre:wpaper:202409&r=ene |
| By: | Cristian Concha; Nathaly M. Rivera |
| Abstract: | Despite the extensive evidence linking particulate matter exposure to adverse health effects, a significant portion of the global population, especially in low-income countries, continues to depend on highly polluting fuels like wood-burning for cooking and heating. This study evaluates the immediate effects of wood-burning restrictions, triggered by air quality warnings, on levels of fine and coarse particulate matter in the city of Los Angeles, Chile. Employing a regression discontinuity design, we derive plausible causal estimates indicating that wood-burning restrictions significantly reduce daily concentrations of PM10 and PM2.5 during the most severe air quality warning. A battery of additional estimations supports these findings. However, our empirical analysis suggests that, while effective, wood-burning restrictions may not be sufficient to lower air pollution concentrations to levels deemed safe for health. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:udc:wpaper:wp557&r=ene |
| By: | Lutz Kilian; David Rapson; Burkhard Schipper |
| Abstract: | This paper documents the effect of the oil embargo and price cap on Russian oil exports in the wake of the Russian invasion of Ukraine in February 2022. We show that the embargo forced Russia to accept a $32/bbl discount on its Urals crude in March 2023 relative to January 2022, nearly half of which is directly attributable to the higher cost of shipping crude oil over longer distances, as Russia diverted much of its crude oil exports to India. Based on a calibrated model of global oil supply and demand, the remainder ($17/bbl) can be explained by increased Indian bargaining power. We also provide a similar analysis for the ESPO price discount on exports to China. In contrast, the price cap deprived Russia of the financial resources it spent on assembling a “shadow” fleet of tankers, but its effect on the Russian oil export price was negligible once the adoption of the price cap had facilitated the use of Western services to transport Russian oil to Asia. |
| Keywords: | Russia; oil; sanctions; embargo; price caps |
| Date: | 2024–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:fip:feddwp:98000&r=ene |
| By: | Khlil, Brahim (Independent researcher) |
| Abstract: | This white paper delineates Mauritania’s strategic economic and social blueprint for 2024-2030, aimed at fostering sustainable growth, economic diversification, and resilience. It underscores the nation’s initiative to leverage its rich natural resources and the strategic pivot towards diversifying its economy, with special emphasis on the emerging gas sector and renewable energy ventures. Central to this strategy are pivotal initiatives such as the Tekavoul program, TAAZOUR’s comprehensive health insurance project, and SNDP’s role in bolstering the fisheries sector, each playing a crucial role in enhancing the living standards of Mauritania’s populace and steering the country towards its ambitious 2030 vision. Through these strategic endeavors, Mauritania is poised to navigate the complexities of global economic shifts, underscoring its commitment to sustainable development and prosperity. This document serves as an essential guide for stakeholders and investors looking into Mauritania’s concerted efforts towards a resilient and prosperous future. |
| Date: | 2024–03–30 |
| URL: | http://d.repec.org/n?u=RePEc:osf:africa:hgn46&r=ene |
| By: | Campolmi, Alessia (University of Verona); Fadinger, Harald (University of Mannheim and CEPR); Forlati, Chiara (University of Southampton); Stillger, Sabine (University of Mannheim); Wagner, Ulrich J. (University of Mannheim and ZEW) |
| Abstract: | This paper proposes a Leakage Border Adjustment Mechanism (LBAM) as a mechanism to tackle carbon emissions and avoid leakages. It requires no knowledge of embedded emissions and can be applied to all tradable sectors. It implements import tariffs (and, possibly, export subsidies) that sterilize the changes in imports (and exports) induced by a higher EU carbon price. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:bda:wpsmep:wp2024/19&r=ene |
| By: | Panle Jia Barwick; Hyuk-Soo Kwon; Shanjun Li |
| Abstract: | Attribute-based subsidies (ABS) are commonly used to promote the diffusion of energy-efficient products, whose manufacturers often wield significant market power. We develop a theoretical framework for the optimal design of ABS to account for endogenous product attributes, environmental externalities, and market power. We then estimate an equilibrium model of China's vehicle market under ABS and conduct counterfactual simulations to evaluate the welfare impacts of various subsidy designs. Compared to the uniform subsidies, ABS lead to higher product quality and are more effective in mitigating quantity distortions, albeit with a modest environmental cost. Between 42% to 62% of welfare gains under ABS relative to uniform subsidies are attributed to more desirable product attributes, with the remainder explained by reductions in market power distortions. Allowing subsidy redistribution through product-level subsidies, as suggested by our theoretical model, further enhances welfare gains by an additional 34% to 62%. Among the ABS designs, China's notched subsidy design based on driving range leads to vehicle downsizing that undermines welfare benefits. Subsidies based on battery capacity, as implemented in the U.S., achieve the highest welfare gains by effectively balancing market power and environmental impacts. |
| JEL: | L13 L52 L62 Q58 |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32264&r=ene |
| By: | Elias Asproudis (Department of Economics, Swansea University); Eleftherios Filippiadis (University of Macedonia, Greece) |
| Abstract: | This document delves into the Command-and-Control framework, specifically examining the timing of environmental policymaking within the context of regulating oligopolistic firms to reduce emissions. The regulator faces a crucial decision of implementing technological standards before (ex-ante timing) or after (ex-post timing) firms make production decisions. Geographical considerations also play a role, with regions adopting asymmetric anti-pollution technology standards. An innovative aspect is the inclusion of green trade unions, advocating for environmental conservation during negotiations with firms. The document conducts a comparative analysis of two games employing ex-ante and ex-post approaches, evaluating outcomes across various dimensions. The study emphasizes the significant impact of regulatory timing on environmental and economic outcomes, showcasing the advantages of a proactive (ex-ante) approach in fostering less-polluting technologies, higher production levels, increased profits, elevated social welfare, and reduced environmental damage. These insights contribute to the discourse on environmental policymaking, providing valuable considerations for policymakers, industry stakeholders, and researchers. |
| Keywords: | Command-and-Control, timing of policy, environmental technology, emissions, oligopoly |
| JEL: | D43 L13 Q5 |
| Date: | 2024–03–05 |
| URL: | http://d.repec.org/n?u=RePEc:swn:wpaper:2024-04&r=ene |
| By: | Ahmet Duhan Yassa |
| Abstract: | This paper investigates the role of urban sprawl and urban mobility on long-term fuel consumption after the 2011 Van earthquake in Türkiye. Both province-level synthetic control and firm-level difference-in-differences (DID) analyses indicate a statistically significant increase in fuel consumption in Van after the earthquake, even though there was no dramatic change in the main determinants of fuel consumption in the province in this period. Findings from the satellite-supported population density images and sensor-level traffic density data reveal that rising population density in peripheral regions and increasing urban mobility within the province are the potential drivers of the rise in fuel consumption. While the impact of the Van earthquake on fuel consumption, the foreign trade deficit and greenhouse gas emissions was limited given the size of the city, the results highlight the potential impact of other major disasters that have occurred in the recent past and are expected to occur in the future. |
| Keywords: | Urban sprawl, Fuel consumption, Earthquake, Synthetic control, Greenhouse gas emissions, Trade deficit |
| JEL: | Q54 R11 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:tcb:wpaper:2401&r=ene |
| By: | Yuan, Mingqing |
| Abstract: | In this study, a panel vector autoregressive (PVAR) model with system generalized method of moments (GMM) estimation is utilized to examine the dynamic causalities among economic growth, healthcare expenditure, and CO2 emissions in Asia-Pacific countries from 2000 to 2019. Results show that economic growth has a positive effect on government healthcare expenditure, with bidirectional causality observed with private healthcare spending. No significant long-term relationship is detected in the former case. These results emphasize the role of economic development in bolstering public health and reflect a later weakening of the level of government response as economies expand. Additionally, CO2 emissions negatively affect economic growth in a unidirectional manner. The impulse response analysis supports the presence of the environmental Kuznets curve (EKC). Furthermore, while a bidirectional causality exists between CO2 emissions and government healthcare spending, a long-standing correlation remains elusive. This result calls for a dual focus on enhancing healthcare services and reducing emission for health and environmental benefits. The results of variance decomposition highlight the significant contribution of government healthcare expenditure to economic growth and private healthcare spending, in addition to the important role of private healthcare spending in economic growth. These findings offer policymakers evidence-based insights to formulate strategies that balance economic growth, sustainable development, and healthcare provision. |
| Keywords: | Economic growth, Healthcare expenditure, CO2 emissions, System-GMM, PVAR, Asia-Pacific region |
| JEL: | C33 C36 C51 I15 O44 O5 O53 Q53 Q56 |
| Date: | 2023 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:119994&r=ene |
| By: | Gough, Ian; Horn, Stefan; Rogers, Charlotte; Tunstall, Rebecca |
| Abstract: | This paper addresses a neglected aspect of the UK housing crisis: how to rapidly but fairly decarbonise the housing stock to meet tough net zero targets while meeting housing needs of the entire population. To do so the authors adopt a radical approach based on sufficiency. The sufficiency approach is based on determining both a housing floor – a decent minimum standard for all – and a housing ceiling - above which lies unsustainable excess. The authors define these thresholds in terms of bedrooms and floorspace and analyse the distribution of housing in England. They find that excess housing is widespread, concentrated in home ownership, particularly outright ownership, and characterised by above average emissions per square metre. They conclude that current policies based solely on energy efficiency and increasing housing supply cannot achieve agreed decarbonisation goals while securing decent accommodation for those who are housing deprived. To do this will require new policies that distinguish between sufficient and excess housing and more effective use of the housing stock to meet housing needs within planetary boundaries. |
| Keywords: | sufficiency; fair decarbonisation; minima-floors; maximaceilings; excess housing; housing distribution; sufficiency policy |
| JEL: | R21 |
| Date: | 2024–03–01 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122477&r=ene |
| By: | Michael Keen; Christos Kotsogiannis |
| Abstract: | Border Carbon Adjustment Mechanisms (BCAMs) are becoming reality in the EU and elsewhere, and recur—in very different form—in U.S. legislative proposals. But they remain contentious, with features and differences that leave the underlying welfare rationale and implications unclear. Exploring these, this paper establishes two general principles for Pareto efficient BCAM design: regulatory measures should be recognized symmetrically with explicit carbon prices; and, whatever the ambition of mitigation in the BCA-imposing country, a general ‘difference-in-differences’ form of a BCAM is appropriate. These nest, as special cases, the very different approaches to BCAM design in Europe and the U.S. |
| Keywords: | environmental taxation, carbon pricing, border tax adjustment, international taxation |
| JEL: | H21 H23 H87 F18 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11016&r=ene |
| By: | Sastry, Parinitha; Verner, Emil; Marqués-Ibáñez, David |
| Abstract: | This paper studies the impact of voluntary climate commitments by banks on their lending activity. We use administrative data on the universe of bank lending from 19 European countries. There is strong selection into commitments, with increased participation by the largest banks and banks with the most pre-existing exposure to high-polluting industries. Setting a commitment leads to a boost in a lender’s ESG rating. Lenders reduce credit in sectors they have targeted as high priority for decarbonization. However, climate-aligned banks do not change their lending or loan pricing differentially compared to banks without climate commitments, suggesting they are not actively divesting. We can reject that climate-aligned lenders divest from firms in targeted sectors by more than 2.6%. Firm borrowers are no more likely to set climate targets after their lender sets a climate target, which casts doubt on active engagement by lenders. These results call into question the efficacy of voluntary commitments. JEL Classification: Q50, G21 |
| Keywords: | banks, green lending, voluntary targets |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:ecb:ecbwps:20242921&r=ene |
| By: | Ohnishi, Kazuhiro |
| Abstract: | Nonpoint pollution arises from dispersed sources and lacks direct monitoring. Observing individual abatement levels or discharges is generally impractical. This paper addresses the economic incentives for controlling nonpoint pollution, which differs from point source pollution due to difficulties in monitoring individual polluting actions. The paper examines a mixed Bertrand duopoly model where there are two firms: a private firm and a partially privatized public firm that is jointly owned by the public and private sectors. The model of the paper uses ambient charges as a policy measure for reducing industrial nonpoint source pollution. This paper shows that ambient charges are an effective policy measure. |
| Keywords: | Ambient charge; Nonpoint pollution: Partial privatization; Price competition |
| JEL: | D21 L33 Q58 |
| Date: | 2024–03–23 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120531&r=ene |
| By: | Choi, Jae Hee (KOREA INSTITUTE FOR INTERNATIONAL ECONOMIC POLICY (KIEP)) |
| Abstract: | 본 연구에서는 중국 전기차 배터리 시장의 현황과 중국산 배터리의 글로벌 경쟁력에 대해 살펴보고, 중국기업의 유형별 해외 진출 사례와 특징을 분석했다. 또한 중국의 대표 전기차 배터리 기업을 선정하여 해당 기업의 해외 사업 전략과 경쟁력을 파악하고, 우리 정부와 기업이 활용할 수 있는 종합적인 대응방안을 고찰했다. Chinese EV battery companies, which dominate the Chinese domestic market, are recently entering global market in earnest. The demand for Chinese batteries is also rising as the demand for batteries increases due to the rapid pace of EV conversion in major automobile markets such as Europe and the United States. As the global market share of Chinese companies rises rapidly, the market share of Korean battery companies, which previously dominated the global battery market, is falling. As competition between Korea and China is expected to intensify in the global market in the future, it can be said that identifying the types and characteristics of Chinese companies’ global expansion and analyzing the strategies and competitiveness of major companies is essential to enhancing and maintaining the global competitiveness of the Korean battery industry. Accordingly, this study aims to examine the current status of the Chinese market and the global competitiveness of Chinese batteries, and to understand the characteristics of each type of global expansion of Chinese companies. In addition, I selected China’s leading EV battery companies to analyze their strategies and competitiveness, and consider comprehensive countermeasures that the Korean government and companies can utilize. In Chapter 2, to examine the development of the Chinese EV battery industry, I examines the Chinese market in terms of supply and demand, and identified the recent oversupply phenomenon that has emerged in the Chinese market. I also compared the level of competitiveness of the Chinese battery industry with that of Korea. First of all, in terms of demand, China is already the world’s largest EV battery market, and battery demand is expected to grow continuously until 2025, reaching more than 1TWh. In the Chinese EV battery market, the demand for LFP batteries compared to ternary batteries is increasing rapidly, and LFP batteries are used in 67% of Chinese EVs in 2023. On the supply side, CATL secures a majority of the market share in the ternary battery sector, and BYD and CATL occupy more than 70% of the market in the LFP battery sector. In addition, as the production capacity of batteries in China increases rapidly, the oversupply phenomenon in the Chinese market is intensifying. (the rest omitted) |
| Keywords: | Economic security; energy industry; China; battery; electric vehicle battery; secondary battery; supply chain |
| Date: | 2024–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:ris:kiepre:2023_012&r=ene |
| By: | DiMaria, charles-henri |
| Abstract: | Taxonomy and efficiency assessments provide financial intermediaries (FIs) with guidance to grant funds according to the Environmental, Social and Governance principles. The EBRD provides a classification of industries according to a priori potential risk (low, medium or high). Using a panel of 28 industries in Luxembourg (2008-2019) and National Account data (NA), we challenge this taxonomy. We compute Data Envelopment Analysis (DEA) efficiency scores indicating if an industry could increase output while simultaneously lowering the emission of greenhouse gases. Our results show that EBRD low risk industries are the most efficient ones. Surprisingly, high-risk industries are more efficient than medium-risk ones, suggesting a potential unintended outcome of the EBRD taxonomy—limiting credit to industries classified as high risk that are in fact more efficient than industries classified as medium risk. |
| Keywords: | EBRD Risk taxonomy; Social acceptance; efficiency; bad output; credit rationing; ESG |
| JEL: | C44 G11 Q51 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:120410&r=ene |
| By: | Krzywdzinski, Martin; Domański, Bolesław; Guga, Ştefan; Gwosdz, Krzysztof; Kubisa, Julia; Lukáčová, Katarína; Martišková, Monika; Meszmann, Tibor; Petr Pavlínek, Petr; Rakowska, Katarzyna; Szalavetz, Andrea |
| Abstract: | Die Transition zur Elektromobilität verläuft in Mittelost- und Südosteuropa langsamer als in Deutschland; zugleich wachsen Länder wie Polen und Ungarn zu wichtigen Komponentenstandorten für Elektromobilität heran. Daher werden durch die Transition mittelfristig keine negativen Beschäftigungseffekte erwartet, allerdings bleiben die Handlungsbedingungen für Gewerkschaften schwierig. Bei der Organisierung der Automobilzuliefererindustrie gibt es nur geringe Erfolge und die Koordination von Gewerkschaften innerhalb der Automobilzulieferbranche bleibt eher schwach. |
| Keywords: | Automobilindustrie, Automobilzulieferer, Automobilzulieferbranche, Verbrennungsmotor |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:hbsfof:289444&r=ene |
| By: | Austin Adams |
| Abstract: | This paper studies the market structure impact of cheaper and faster chains on the Uniswap v3 Protocol. The Uniswap Protocol is the largest decentralized application on Ethereum by both gas and blockspace used, and user behaviors of the protocol are very sensitive to fluctuations in gas prices and market structure due to the economic factors of the Protocol. We focus on the chains where Uniswap v3 has the most activity, giving us the best comparison to Ethereum mainnet. Because of cheaper gas and lower block times, we find evidence that the majority of swaps get better gas-adjusted execution on these chains, liquidity providers are more capital efficient, and liquidity providers have increased fee returns from more arbitrage. We also present evidence that two second block times may be too long for optimal liquidity provider returns, compared to first come, first served. We argue that many of the current drawbacks with AMMs may be due to chain dynamics and are vastly improved with cheaper and faster transactions |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.09494&r=ene |
| By: | - |
| Abstract: | En el presente documento se analiza y caracteriza la pobreza energética en la Argentina. En él se aborda el tema mediante un enfoque flexible que considera aspectos históricos, sociales y territoriales. Se define la pobreza energética como la incapacidad de los hogares para satisfacer de manera continua y segura sus necesidades energéticas. El enfoque se desglosa en dimensiones como acceso, calidad y asequibilidad de los servicios energéticos, con indicadores específicos para medir cada una. Finalmente, el objetivo central es proporcionar una metodología de diagnóstico integral y adaptable a diferentes áreas del país. |
| Date: | 2024–02–13 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:68945&r=ene |
| By: | - |
| Abstract: | El cambio climático se hace cada vez más evidente y está teniendo efectos perjudiciales en todo el mundo. América Latina y el Caribe, donde están aumentando la frecuencia y la intensidad de las sequías, los incendios forestales y las tormentas extremas, no es la excepción. Ello ocurre en un contexto de escaso crecimiento regional, que se refleja en un estancamiento que ya lleva un decenio, pone en riesgo los progresos alcanzados en términos de desarrollo y, sobre todo, limita la capacidad de los países de mejorar el bienestar de sus poblaciones de manera sostenible. En esta encrucijada, la acción por el clima ofrece una oportunidad de potenciar el crecimiento y la innovación, crear empleo y mejorar la integración de los países de la región en la economía mundial. Las inversiones, planes y políticas necesarios para hacer frente a la crisis climática también podrían ser útiles para alcanzar las metas económicas y sociales. En este documento se presentan los efectos económicos generales del cambio climático y se describen los compromisos regionales en materia de mitigación y adaptación. Sobre esa base, se estiman las inversiones necesarias y se examinan las políticas específicas que se están aplicando en la región para propiciarlas. |
| Date: | 2024–03–04 |
| URL: | http://d.repec.org/n?u=RePEc:ecr:col022:69031&r=ene |