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on Energy Economics |
| By: | Tsanko, Ilona |
| Abstract: | Understanding how consumers respond to price increases is key when designing price-related policies. Using microdata on vehicle usage and paid fuel prices, I analyze consumers' response, focusing on three channels of mitigation: distance driven, fuel efficiency, and search. On average, consumers mitigate 38 percent of a price increase through these channels. Reducing distance driven is the primary channel of mitigation. Increased search efforts mitigate up to 11 percent of a price increase. Response levels vary significantly with newer vehicles' owners mitigating up to 88 percent of a price increase, while older vehicle owners achieve can mitigate up to 45 percent. |
| Keywords: | Demand response, Gasoline prices, Consumers search, Fuel consumption |
| JEL: | D12 Q41 L91 L98 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:zewdip:289454&r=ene |
| By: | Francis Perrin |
| Abstract: | À l’approche du Sommet africain du climat (Africa Climate Summit), qui se tiendra à Nairobi du 4 au 6 septembre 2023, de très nombreuses organisations non gouvernementales (ONG) ont écrit au président du Kenya, William Ruto, pour lui faire part de leurs inquiétudes concernant l’ordre du jour de ce sommet. Selon ces ONG, les intérêts des entreprises et des pays occidentaux pourraient prendre le pas sur ceux de l’Afrique. Les vraies priorités sont notamment d’éliminer progressivement les énergies fossiles et d’investir dans les énergies renouvelables et il est nécessaire que l’ordre du jour soit revu et modifié en vue de refléter les priorités africaines dans la lutte contre le changement climatique, a expliqué cette coalition d’environ 300 ONG. |
| Date: | 2023–09 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb33-23&r=ene |
| By: | Fix, Blair |
| Abstract: | When it comes to Bitcoin, there’s one thing that almost everyone agrees on: the network sucks up a tremendous amount of energy. But from there, disagreement is the rule. For critics, Bitcoin’s thirst for energy is self-evidently bad — the equivalent of pouring gasoline in a hole and setting it on fire. But for Bitcoin advocates, the network’s energy gluttony is the necessary price of having a secure digital currency. When judging Bitcoin’s energy demands, the advocates continue, keep in mind that mainstream finance is itself no model of efficiency. Here, I think the advocates have a point. If you want to argue that Bitcoin is an energy hog, you’ve got to do more than just point at its energy budget and say ‘bad’. You’ve got to show that this budget is worse than mainstream finance. On this comparison front, there seems to be a vacuum of good information. For their part, crypto promoters are happy to show that Bitcoin uses less energy than the global banking system. But this result is as unsurprising as it is meaningless. Compared to Bitcoin, global finance operates on a vastly larger scale. So of course it uses more energy. To be meaningful, any comparison between Bitcoin and mainstream finance must account for the different scales of the two systems. So instead of looking at energy alone, we need to look at energy intensity — the energy per unit of circulating currency. That’s what I’ll do here. In this post, I compare the energy intensity of Bitcoin to the energy intensity of mainstream US finance. Which system comes out on top? The results may surprise you. |
| Keywords: | bitcoin, energy, finance, money |
| JEL: | P1 Q4 E4 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:esprep:289512&r=ene |
| By: | Kässi, Otto |
| Abstract: | Abstract This report examines the allocation of Finland’s green transition and digitalization-related subsidies on an annual basis. The analysis utilizes the business subsidy information service system maintained by the Ministry of Economic Affairs and Employment, which provides comprehensive data for the years 2020–2023. According to the data, the value of green subsidies has increased both relatively and absolutely since 2020. However, on an annual basis, the share of brown subsidies, which increase greenhouse gas emissions, has been larger than that of green subsidies every year. There is no similar growth trend for subsidies aimed at digitalization. Moreover, the value of subsidies directed towards digitalization is lower than brown subsidies on an annual level. A provincial and sectoral comparison of the subsidies reveals that a significant portion of the subsidies is narrowly targeted to specific sectors and regions. |
| Keywords: | Green Transition Subsidies, Digitalization Support, State Subsidies, Environmental Policy Funding, Sectoral and Regional Allocation, Industrial Policy |
| JEL: | H25 H81 Q58 O38 |
| Date: | 2024–04–22 |
| URL: | http://d.repec.org/n?u=RePEc:rif:report:147&r=ene |
| By: | Otaviano Canuto |
| Abstract: | The global economic environment has changed as the U.S.—and to a less confrontational degree, the European Union—have clearly established a context of technological rivalry with China. Hindering China’s progress in the sophistication of semiconductor production has become a centerpiece of current U.S. foreign policy. While the U.S. is clearly winning the semiconductor war, the picture is different when it comes to clean-energy technology. Both technology wars overlap with access to and refinement of critical raw materials (CRM), which are key upstream components of the corresponding value chains, encompassing mineral-rich emerging markets and developing economies. The way in which the U.S. and the European Union approach the goal of self-sufficiency, as well as access to and refinement of CRMs, will make a big difference to their stakes in the technology wars. |
| Date: | 2023–11 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb41-23&r=ene |
| By: | Fulton, Lewis; Gruen, Jonathan |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt2gh6x0x1&r=ene |
| By: | Cheikh T. Ndour (Cheikh Anta Diop University, Dakar, Senegal); Simplice A. Asongu (ASPROWORDA, Cameroon) |
| Abstract: | Purpose – This study examines the relevance of information and communication technologies in the effect of gender economic inclusion on environmental sustainability. Design/methodology/approach – The focus is on a panel of 42 sub-Saharan African countries over the period 2005-2020. The empirical evidence is based on generalized method of moments. The environmental sustainability indicator used is CO2 emissions per capita. Two indicators of women's economic inclusion are considered: women's labour force participation and women's unemployment. The chosen ICT indicators are mobile phone penetration, internet penetration and fixed broadband subscriptions. Findings – The results show that: (i) fixed broadband subscriptions represent the most relevant ICT moderator of gender economic inclusion for an effect on CO2 emissions; (ii) negative net effects are apparent for the most part with fixed broadband subscriptions (iii) both positive ICT thresholds (i.e., critical levels for complementary policies) and negative ICT thresholds (i.e., minimum ICT levels for negative net effects) are provided; (iv) ICT synergy effects are apparent for female unemployment, but not for female employment. In general, the joint effect of ICTs or their synergies and economic inclusion should be a concern for policymakers in order to better ensure sustainable development. Moreover, the relevant ICT policy thresholds and mobile phone threshold for complementary policy are essential in promoting a green economy. Originality/value –The study complements the extant literature by assessing linkages between information technology, gender economic inclusion and environmental sustainability. |
| Keywords: | ICT, Gender inclusion; Environment sustainability; Sub-Saharan Africa |
| JEL: | C52 O38 O40 O55 P37 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/001&r=ene |
| By: | Marc Gronwald; Sania Wadud |
| Abstract: | This paper investigates the informational efficiency of green bond markets using a recently introduced quantitative measure for market inefficiency. The methodology assesses the deviation of observed asset price behavior from the Random Walk benchmark, which represents an efficient market. The main findings of the analysis are as follows: the degree of informational inefficiency of the green bond market is generally found to be very similar to that of benchmark bond markets such as treasury bond markets. For extensive periods, what is more, it is even found to be less inefficient. Overall, the price developments in green bond markets are very similar to those in the benchmark bond markets. In other words, fundamental factors that drive bond prices in general also drive prices for green bonds. It is worth pointing out, however, that the degree of inefficiency of the green bond market during the Covid outbreak in 2020 and the inflation shock in 2022/2023 is lower than that of the treasury bond market. |
| Keywords: | green bonds, efficient market hypothesis, fractional integration |
| JEL: | C22 E30 G14 Q02 Q31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11029&r=ene |
| By: | Arkadiusz Lipiecki; Bartosz Uniejewski; Rafa{\l} Weron |
| Abstract: | Operational decisions relying on predictive distributions of electricity prices can result in significantly higher profits compared to those based solely on point forecasts. However, the majority of models developed in both academic and industrial settings provide only point predictions. To address this, we examine three postprocessing methods for converting point forecasts into probabilistic ones: Quantile Regression Averaging, Conformal Prediction, and the recently introduced Isotonic Distributional Regression. We find that while IDR demonstrates the most varied performance, combining its predictive distributions with those of the other two methods results in an improvement of ca. 7.5% compared to a benchmark model with normally distributed errors, over a 4.5-year test period in the German power market spanning the COVID pandemic and the war in Ukraine. Remarkably, the performance of this combination is at par with state-of-the-art Distributional Deep Neural Networks. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.02270&r=ene |
| By: | Cavalcanti, T.; Mohaddes, K.; Nian, H.; Yin, H. |
| Abstract: | This paper investigates the long-run effects of prolonged air pollution on firmlevel human capital, knowledge and innovation composition. Using a novel firm-level dataset covering almost all industrial firms engaged in science and technology activities in China, and employing a regression discontinuity design, we show that prolonged pollution significantly diminishes both the quantity and the quality of human capital at the firm level. More specifically, we show that air pollution affects firm-level human capital composition by reducing the share of employees with a PhD degree and master’s degree, but instead increasing the share of employees with bachelor’s degree. Moreover, the difference in the composition of human capital materially change the knowledge and innovation structure of the firms, with our estimates showing that pollution decreases innovations that demand a high level of creativity, such as publications and inventions, while increasing innovations with a relatively low level of creativity, such as design patents. Quantitatively, on the intensive margin, one μg/m 3 increase in the annual average PM 2.5 concentration leads to a 0.188 loss in the number of innovations per R&D employee. Overall, we show that air pollution has created a gap in human capital, knowledge, and innovation between firms in the north and south of China, highlighting the importance of environmental quality as a significant factor for productivity and welfare. |
| Keywords: | Pollution, human capital, knowledge, innovation, China |
| JEL: | O15 O30 O44 Q51 Q56 |
| Date: | 2023–01–03 |
| URL: | http://d.repec.org/n?u=RePEc:cam:camjip:2301&r=ene |
| By: | Rim Berahab |
| Abstract: | The energy landscape in 2024 is at a crossroads. Fossil fuels continue to dominate, with prices that are volatile due to geopolitical tensions and shifting demand patterns. However, renewable energy is on the rise thanks to cost declines, policy support, and growing consumer adoption. This Policy Brief examines five significant trends that will shape the energy landscape in 2024. Navigating the complex energy landscape requires careful risk monitoring and prudent policy responses. Key areas to monitor are potential spikes in oil and natural gas prices, and challenges to the expansion of renewable energy. By understanding these trends and proactively managing risks, countries can ensure a more sustainable and secure energy future. |
| Date: | 2024–02 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb05-24&r=ene |
| By: | Marc Gronwald; Sania Wadud; Kingsley Dogah |
| Abstract: | This paper investigates the informational efficiency of global crude oil markets using a recently introduced quantitative measure for market inefficiency. The methodology assesses the deviation of observed oil price behavior from the Random Walk benchmark, representing an efficient market. The main findings of the analysis are as follows: firstly, the degree of crude oil market inefficiency demonstrates temporal variations. Secondly, there are marked increases in the degree of inefficiency during extreme episodes, such as the price downturns experienced in 2008, 2014, and early 2020. Thirdly, the degree of inefficiency exhibits substantial variations across regional crude oil markets before 2006 but converges thereafter. Since this discovery is grounded in the observation of more similar price behavior across markets post-2006, the paper establishes a connection between the literature on oil market integration and that focusing on the informational efficiency of oil prices. |
| Keywords: | world oil markets, efficient market hypothesis, market integration, fractional integration |
| JEL: | C22 E30 G14 Q02 Q31 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11017&r=ene |
| By: | Fabian Scheifele; David Popp |
| Abstract: | Support from local citizens is important for the scale-up of renewable energy. We investigate the impact of utility-scale wind and solar parks on employment, GDP and public finances in Brazilian municipalities using a difference-in-differences design with matching. We find a positive employment impact of 1-1.5 jobs/MW in the 15 months preceding the commissioning of a solar park, when the park is under construction, but no impacts thereafter. For wind, we find no employment impacts during the construction phase and potentially a small impact of 0.2-0.25 jobs/MW in the 12 months following commissioning. In the year after commissioning, GDP increases 23% for an average sized solar park and 12% for an average sized wind project. The impacts only decrease slightly in the following years. We also find significant persistent fiscal revenue impacts in wind compared to only a one-time tax revenue increase in solar at the time of construction. Our results provide different implications for policymakers that want to advocate for renewable energy in their towns. While for solar, the main benefit constitutes a short-term increase in low-skilled employment and public revenues, wind energy provides more long-term financial benefits but less local employment opportunities. |
| Keywords: | employment, renewables, local impact, difference-in-differences |
| JEL: | Q52 O13 O14 E24 J21 H71 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_11023&r=ene |
| By: | Pan-Yang Su; Chinmay Maheshwari; Victoria Tuck; Shankar Sastry |
| Abstract: | The rise of advanced air mobility (AAM) is expected to become a multibillion-dollar industry in the near future. Market-based mechanisms are touted to be an integral part of AAM operations, which comprise heterogeneous operators with private valuations. In this work, we study the problem of designing a mechanism to coordinate the movement of electric vertical take-off and landing (eVTOL) aircraft, operated by multiple operators each having heterogeneous valuations associated with their fleet, between vertiports, while enforcing the arrival, departure, and parking constraints at vertiports. Particularly, we propose an incentive-compatible and individually rational vertiport reservation mechanism that maximizes a social welfare metric, which encapsulates the objective of maximizing the overall valuations of all operators while minimizing the congestion at vertiports. Additionally, we improve the computational tractability of designing the reservation mechanism by proposing a mixed binary linear programming approach that is based on constructing network flow graph corresponding to the underlying problem. |
| Date: | 2024–03 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2403.18166&r=ene |
| By: | Bright A. Gyamfi (Udaipur, India); Divine Q. Agozie (University of Ghana, Business School); Ernest B. Ali (University of Ghana, Ghana); Festus V. Bekun (Istanbul, Turkey); Simplice A. Asongu (Yaoundé, Cameroon) |
| Abstract: | As the environmental sustainability effectiveness of various political systems is taken into consideration, it is doubtful as to whether the presumption of the overall efficiency of democracy can be sustained in global governance architecture. The effectiveness of autocracies and democracies (i.e., governance indicators are compared in the present study) with reference to strengths and weaknesses in environmental objectives. This analysis explores the effect of autocracy, democracy, as well as the trend of globalization on CO2 emissions for open and closed economies from 1990 to 2020. Crucial indicators such as economic growth, renewable energy and non-renewable energy are controlled for while examining the roles of economic expansion on the disaggregated energy consumption portfolios for both open and closed economies. The empirical analysis revealed some insightful results. First, for the open economies, with the expectation of non-renewable energy which show a positive significant impact on emissions, all variables show a negative effect on emissions. Furthermore, the closed economies result indicate that, apart from renewable energy which has a negative relationship with emissions, all the variables including the interaction terms have a positive relation with emissions. However, an inverted U-shaped environmental Kuznets curve (EKC) hypothesis was validated for both economies. |
| Keywords: | Open economies, closed economies, democracy, autocracy, Environmental Kuznets Curve, globalization index, environmental sustainability |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/005&r=ene |
| By: | Marcos Valli Jorge; Angelo M Fasolo; Silvio Michael de Azevedo Costa |
| Abstract: | This paper examines the dynamic behavior of the Brazilian economy under policy regimes aimed at controlling pollutant emissions and limiting environmental damage. Greenhouse gas (GHG) emissions are assumed to be of two types: carbon from fossil resources burning for energy generation (i.e., thermoelectric) or carbon and non-carbon outputs from production processes (i.e., methane from cattle). Firms optimally decide on the demand for fossil and green energy, as the level of effort dedicated to abating emissions coming from production processes. Two alternative policies for emissions, which include emissions taxation (fixed cost) and emission permits trade (quantity caps), are introduced into an open-economy DSGE model for the Brazilian economy. Departing from the estimated parameters of the original version of the model, ratios in the new block of equations for the energy and emissions are calibrated using sectoral data, and some elasticities are set to reproduce the sensibility to some shocks implicit in the NGFS scenarios (Net Zero 2050). Simulations indicate neither of the emissions policies can induce transition in the energy matrix without a green investment policy. The approach adopted here is a first step in building a macroeconomic model capable of challenging scenarios from more specialized models dedicated to energy and emissions by better assessing possible effects and feedback related to the iterations with macroeconomic dynamics. Despite the difficulties concerning the limited availability of data in higher frequency, results indicate those modeling approaches are sufficiently flexible to incorporate the main aspects of energy and emission, serving as valuable tools for policy analysis. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:bcb:wpaper:591&r=ene |
| By: | Khlil, Brahim (Independent researcher) |
| Abstract: | The white paper, *The Desert Powerhouse: Mauritania’s Quest to Become the Capital of Green Hydrogen*, presents a strategic analysis of Mauritania's potential in harnessing its vast renewable resources to lead the green hydrogen industry. It explores Mauritania's endeavors in establishing international collaborations, advancing infrastructural development, and implementing policy reforms to foster an economy powered by sustainable energy. This document provides a blueprint for economic diversification, job creation, and positioning Mauritania as a central hub in the global green hydrogen market, demonstrating a scalable model for renewable energy adoption worldwide. |
| Date: | 2024–03–25 |
| URL: | http://d.repec.org/n?u=RePEc:osf:socarx:4m3nw&r=ene |
| By: | Sogalla, Robin; Wanner, Joschka; Watabe, Yuta |
| Abstract: | This paper investigates the elusive role of productivity heterogeneity in new trade models in the trade and environment nexus. We contrast the Eaton-Kortum and the Melitz models with firm heterogeneity to the Armington and Krugman models without heterogeneity. We show that if firms have a constant emission share in terms of sales - as they do in a wide range of trade and environment models - the three models' emission predictions exactly coincide. Conversely, if firms have a constant emission intensity per quantity - a prominent alternative in the literature - the emission equivalence between the three models breaks. We provide a generalization that nests both constant emission shares in sales and constant quantity emission intensities as special cases. We calibrate the models to global production and trade data and use German firm-level data to estimate the key elasticity of how emission intensity changes with productivity. Our multi-industry quantification demonstrates that the role of firm heterogeneity depends both on the model and the estimated parameters. Moving from the Armington model to the EK model increases the emissions effect on trade, while moving from the Krugman model to the Melitz model decreases the emission effects on trade. |
| Keywords: | International trade, carbon emissions, firm heterogeneity |
| JEL: | F11 F12 F18 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:ifwkwp:289604&r=ene |
| By: | Federica Cappelli (University “Niccolò Cusano”, National Research Council of Italy – CNR, Institute for Studies on the Mediterranean – ISMed) |
| Abstract: | The question of whether changes in income inequality affect CO2 emissions remains a topic of debate at both theoretical and empirical levels. The purpose of this paper is to examine the effect of changes in the full spectre of income distribution on consumption based CO2 emissions per capita. To do so, we estimate a dynamic difference-GMM model and a dynamic threshold regression model allowing for endogeneity on a panel database covering 107 countries between 1990 and 2019. Our analysis highlights how different income classes contribute very differently to consumption-based CO2 emissions. In addition, by accounting for between-country inequalities in the average income of each income group, we uncover non-linearities in the impact on carbon emissions. More specifically, the impact of an increase in the income share of the top 10% on per capita consumption-based carbon emissions varies according to their average income level: it is negative at lower income levels and becomes positive as their income rises. The contribution of the middle class is negative at all income levels, while the CO2 contribution of the poorest segments is negligible. |
| Keywords: | Inequality, Emissions, Income Distribution, Climate Change |
| JEL: | D31 D63 Q54 Q57 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:fem:femwpa:2024.06&r=ene |
| By: | Joseph I. Uduji (University of Nigeria, Nsukka, Nigeria); Elda N. Okolo-Obasi (University of Nigeria, Nsukka, Nigeria); Justitia O. Nnabuko (University of Nigeria, Nsukka, Nigeria); Geraldine E. Ugwuonah (University of Nigeria, Nsukka, Nigeria); Josaphat U. Onwumere (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | We examine the impact of multinational oil companies’ (MOCs) corporate social responsibility (CSR) using global memorandum of understanding (GMoU) on mitigating the resurgence of inter-communal violence in Niger Delta, Nigeria. Using explanatory research design, the study adopted mixed methods to answer the research questions and test the hypotheses of the study. Primary data were generated from a sample of 1200 respondents selected form all the nine states of the region using multiple sampling techniques. We carried out both survey with structured questionnaire and key informant interview to ascertain the effect of CSR on the resurgence of inter-communal violence in the region. Results from the use of a logit model and use of propensity score matching to determine the mean difference between variables in the treatment and control shows that a bantam but significant CSR interventions have been made by the MOCs in the areas that will discourage people from engaging in inter-communal violence. The findings suggest that an increase in CSR targeted at improving access to cultivatable land, enhanced fishing space, reducing multi-dimensional poverty, as well as reducing frustration and indignation; will dissuade local people from involvement in inter-communal violence. |
| Keywords: | Oil extraction communities, inter-communal violence, corporate social responsibility, Nigeria’s Niger Delta |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/010&r=ene |
| By: | Davi-Arderius, Daniel (University of Barcelona and Chair of Energy Sustainability, Barcelona Institute of Economics (IEB), Spain. Copenhagen School of Energy Infrastructure (CSEI), Copenhagen Business School, Denmark); Jamasb, Tooraj (Department of Economics, Copenhagen Business School); Rosellon, Juan (Centro de Investigación y Docencia Económicas, German Institute for Economic Research (DIW Berlin), Center for Energy Studies, Rice University, and Chair of Energy Sustainability, Barcelona Institute of Economics (IEB), Spain) |
| Abstract: | Operating a reliable power system requires respecting strict safety and security criteria such as avoiding grid congestion, minimum levels of inertia, maintaining voltage levels, and having minimum adequacy reserves. However, large scale integration of intermittent renewables is transforming grid operation by creating new operational challenges. When operational security criteria are not met in parts of the network, system operators use ancillary services (redispatching) to activate or curtail specific generation units to manage the flows. In Spain, the volumes and costs of redispatching have multiplied by two and nine times between 2019 and 2023, respectively. In 2023, volumes peaked at 16.5TWh and the costs to 2.1b€. A similar picture is emerging in other countries. We investigate the determinants of network constraints associated with redispatched volumes after the day-ahead and intraday markets. To our knowledge, this is the first study to examine this topic in detail at national level. We use the seasonal autoregressive ARIMA time-series estimator method with hourly operational and market data (2019-2023). We find that actions to alleviate network congestion represent one-third of the redispatched volumes, though increasing every year. After day-ahead markets, most redispatched volumes are aimed at voltage problems, which aggravates when demand decreases, or generation from wind and photovoltaics (power electronics generation) increases. After intraday-markets, two thirds of the redispatched volumes were related to insufficient adequacy reserves, which calls for backup fossil fuel plants. We provide operational and regulatory recommendations aimed at minimizing volumes of these network constraints and the need for corrective actions. |
| Keywords: | Network operation; Renewable integration; Redispatching; Synchronous generation; Power electronics; Network congestion; Voltage issues; Reliability criteria |
| JEL: | L51 L94 Q41 Q42 |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:hhs:cbsnow:2024_008&r=ene |
| By: | Gsottbauer, Elisabeth; Kirchler, Michael; König-Kersting, Christian |
| Abstract: | To address the climate crisis, it is necessary to transform the economy, with the finance industry taking a central role by implementing sustainable investment policies. This study aims to understand the motivations and preferences of its key players—financial professionals and climate experts. Here we use an incentivized experiment to measure the willingness to forgo payout to curb carbon emissions and a survey to elicit attitudes and beliefs toward the climate crisis. We provide suggestive evidence that financial professionals have a lower willingness to curb carbon emissions, are less concerned about climate change, and are less supportive of carbon taxes compared to climate experts. We report differences in motivations and priorities, with financial professionals emphasizing economic and reputational considerations and climate experts prioritizing ecological and social consequences of the crisis. Our findings highlight the importance of financial incentives and reputational concerns in motivating financial professionals to address the climate crisis. |
| JEL: | N0 |
| Date: | 2024–03–27 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122590&r=ene |
| By: | Francis Perrin |
| Abstract: | À la fin de la COP28, qui s’est tenue à Doubaï (Emirats arabes unis) du 30 novembre au 13 décembre 2023, les Etats qui ont signé et ratifié la Convention-cadre des Nations Unies sur les changements climatiques (CCNUCC) ont adopté par consensus le ‘‘Global Stocktake’’ qui prévoit notamment que le monde doit engager une transition qui l’éloignera des énergies fossiles (‘‘transitioning away from fossil fuels’’) de façon ‘‘juste, ordonnée et équitable’’ (‘‘in a just, ordered and equitable manner’’). Un peu moins de 200 Etats sont donc en théorie tenus d’aller dans le sens de ce texte qui fait d’ailleurs déjà l’objet de plusieurs interprétations. De nombreux pays ont estimé qu’il s’agissait du ‘‘début de la fin des énergies fossiles’’, une conclusion qui nous semble un peu hâtive. Au-delà de ces diverses interprétations, revenons sur l’attitude des pays qui ont beaucoup travaillé pour obtenir l’inscription de la phrase citée ci-dessus dans le texte final de la COP28 et qui se sont félicités de ce résultat en estimant que cette COP représentait un tournant majeur. Il y en a beaucoup et nous ne pourrons pas être exhaustifs dans le format de cette note. Mais les exemples que nous avons sélectionnés sont très représentatifs. |
| Date: | 2023–12 |
| URL: | http://d.repec.org/n?u=RePEc:ocp:ppaper:pb47-23&r=ene |
| By: | Herrala, Risto |
| Abstract: | We compare the economic and environmental performances of India and China over the past decade against the Euro Area, Japan, and the USA. India has emerged as the world's fastest growing large economy, but closer scrutiny suggests this impressive economic performance derives largely from structural factors such as labor force growth and the Balassa-Samuelson effect. Indeed, notwithstanding its superior level of economic development relative to India, China still posts stronger economic gains from investment and total factor productivity growth. While the two economies have grown markedly faster than the three developed economies against which we compare them, both Indian and Chinese growth has come with huge increases in greenhouse gas emissions. Our findings underscore the importance of Chinese and Indian participation in efforts to avoid the more dire impacts of climate change. |
| Keywords: | India, China, economic growth, CO2 emissions |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:zbw:bofitb:289621&r=ene |
| By: | Eskander, Shaikh; Istiak, Khandokar |
| Abstract: | Understanding how energy efficiency improvement can mitigate CO2 emissions is critical for global climate change policies to ensure environmental sustainability and a low carbon future. Being the catalyst for training future generations, universities can play a leading role in this vision by adopting energy-saving and emissions reduction strategies. Using HESA data, a centralized system of reporting energy use and corresponding emissions, we adopt a two-step system GMM estimation procedure to estimate the effect of energy efficiency on CO2 emissions for 119 UK universities over the period between 2008-09 and 2018-19. Results confirm that higher energy efficiency is conducive to lower emissions. However, the less-than-elastic relationship between energy efficiency and emissions implies that energy efficiency improvement alone cannot enable the UK universities to comply with their net-zero objectives unless they increasingly adopt renewable energy sources. Despite this, universities were able to avoid 2.21 gtCO2e emissions over the sample period due to energy efficiency improvements. Our results are robust to alternative specifications. |
| Keywords: | emissions; energy; Fisher index; university |
| JEL: | Q41 Q42 |
| Date: | 2022–10–08 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:116687&r=ene |
| By: | Bartosz Uniejewski |
| Abstract: | The most commonly used form of regularization typically involves defining the penalty function as a L1 or L2 norm. However, numerous alternative approaches remain untested in practical applications. In this study, we apply ten different penalty functions to predict electricity prices and evaluate their performance under two different model structures and in two distinct electricity markets. The study reveals that LQ and elastic net consistently produce more accurate forecasts compared to other regularization types. In particular, they were the only types of penalty functions that consistently produced more accurate forecasts than the most commonly used LASSO. Furthermore, the results suggest that cross-validation outperforms Bayesian information criteria for parameter optimization, and performs as well as models with ex-post parameter selection. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2404.03968&r=ene |
| By: | Christina Anderl; Guglielmo Maria Caporale |
| Abstract: | This paper investigates the inflation effects of oil price expectations shocks constructed as functional shocks, i.e. as shifts in the entire oil futures term structure (both standard and risk-adjusted). The latter are then included in a vector autoregressive model with exogenous variables (VARX) to examine the US case. Counterfactual analysis is also carried out to investigate second-round effects on inflation through the inflation expectations channel. These are found to be significant, in contrast to earlier studies based on standard oil price shocks. Additional nonlinear local projections including a shock decomposition exercise show that inflation and inflation expectations are primarily driven by changes in the curvature (level and slope) factor when the latter are anchored (unanchored). These findings provide useful information to policymakers concerning the impact of oil price expectations on inflation and inflation expectations. |
| Keywords: | functional shocks, oil price expectations, inflation anchoring, counterfactual analysis |
| JEL: | C32 E31 Q43 |
| Date: | 2024 |
| URL: | http://d.repec.org/n?u=RePEc:ces:ceswps:_10998&r=ene |
| By: | Passmore, Reid; Watkins, Kari E; Guensler, Randall |
| Abstract: | Planners and engineers need to know how to assess the impacts of proposed cycling infrastructure projects, so that projects that have the greatest potential impact on the actual and perceived cycling safety are selected over those that would be less effective. Planners also need to be able to communicate these impacts to decision-makers and the public. This research addresses these problems using the BikewaySim cycling shortest path model. BikewaySim uses link impedance functions to account for link attributes (e.g., presence of a bike lane, steep gradients, the number of lanes) and find the least impedance path for any origin-destination pair. In this project, BikewaySim was used to assess the impacts of using time-only and time with attribute impedances, as well as two proposed cycling infrastructure projects, on 28, 392 potential trips for a study area in Atlanta, Georgia. These impacts were visualized through bikesheds, individual routing, and betweenness centrality. Two metrics, percent detour and change in impedance, were also calculated. Results demonstrate that BikewaySim can effectively visualize potential improvements of cycling infrastructure and has additional applications for trip planning. An expanded study area was also used to demonstrate bike + transit mode routing for four study area locations. Visualizations examine the accessibility to TAZs, travel time, and the utilized transit modes for each location. Compared to the walk + transit mode, the bike + transit mode provided greater access to other TAZs and reached them in a shorter amount of time. The locations near the center of the transit network where many routes converge offered the greatest accessibility for both the bike + transit and walk + transit modes. The difference in accessibility was greatest for locations near fewer transit routes. This research demonstrated how BikewaySim can be used to both examine the current cycling network and show changes in accessibility likely to result from new infrastructure. Both BikewaySim and TransitSim are open-source Python based tools that will be made available for practitioners to use in bicycle network planning. Future research will focus on calibrating link impedance functions with revealed preference data (cycling GPS traces) and survey response data (surveys on user preference for cycling infrastructure). View the NCST Project Webpage |
| Keywords: | Engineering, Social and Behavioral Sciences, bicycle networks, shortest path routing, bicycle route choice, bicycle facility preference, first and last mile travel |
| Date: | 2024–04–01 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt7pt4d1tk&r=ene |
| By: | Johannes Emmerling (CMCC - Centro Euro-Mediterraneo per i Cambiamenti Climatici [Bologna]); Ulrike Kornek (CAU - Christian-Albrechts-Universität zu Kiel = Christian-Albrechts University of Kiel = Université Christian-Albrechts de Kiel); Stéphane Zuber (PSE - Paris School of Economics - UP1 - Université Paris 1 Panthéon-Sorbonne - ENS-PSL - École normale supérieure - Paris - PSL - Université Paris sciences et lettres - EHESS - École des hautes études en sciences sociales - ENPC - École des Ponts ParisTech - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique) |
| Keywords: | Welfare, Multidimensional, Climate scenarios, Substitutability |
| Date: | 2024–06 |
| URL: | http://d.repec.org/n?u=RePEc:hal:cesptp:halshs-04524550&r=ene |
| By: | Fulton, Lewis; Miller, Marshall; Gruen, Jonathan |
| Keywords: | Social and Behavioral Sciences |
| Date: | 2024–04–15 |
| URL: | http://d.repec.org/n?u=RePEc:cdl:itsdav:qt3sj230pg&r=ene |
| By: | Lucas Epstein; Erich Muehlegger |
| Abstract: | In 2018, California voters rejected Proposition 6, a ballot initiative that sought to repeal state gasoline taxes and vehicle fees enacted as part of the 2017 Road Repair and Accountability Act. We study the relationship between support for the proposition, political ideology and the economic burdens imposed by the Act. For every hundred dollars of annual per-household imposed costs, we estimate that support for the proposition rose by 3 - 9 percentage points. Notably, we find that the relationship between voting and the economic burden of the policy is seven times stronger in the most conservative tracts relative to the most liberal tracts. Since conservative areas in California and elsewhere tend to bear a higher burden from transportation and energy taxes than liberal areas, heterogeneity in the response to economic burdens has important implications for the popular support for environmental taxes and the ongoing policy debate about how to finance future road infrastructure. |
| JEL: | H23 R48 |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:32311&r=ene |
| By: | Criscuolo, Chiara; Lalanne, Guy |
| Abstract: | Industrial policy is back. After having been considered a taboo since the 1970s, “new industrial policies” are at the core of governments’ strategies to support countries during crises and enable the green and digital transitions. Virtually, every government has used and uses industrial policy, despite continued concerns related to anticompetitive effects, within and across countries, captured by vested interests and the opportunity cost of public funds, which economists have pointed out, based on previous unsuccessful experiences. In this paper, we contribute to the debate on industrial policy by presenting both a sound and simple framework to help design industrial policies and also data that allow the comparison of industrial strategies and their priorities across countries. First, this paper summarises our recent framework for industrial strategies, which is designed to offer practical policy advice and shed light on the complementarities between different policy instruments. Such a framework is particularly useful when designing complex mission-oriented industrial strategies promoting the green transition of the business sector. Second, this paper presents some salient results from the new “Quantifying Industrial Strategies” (QuIS) project, which gathers harmonised data on industrial policy expenditures, policy priorities, and policy instruments, thereby allowing the benchmarking of industrial strategies across countries. Based on the aforementioned conceptual framework, QuIS measures industrial policy expenditures across 9 OECD members, for the period 2019–2021. The data, now publicly available on the OECD website, show the importance of industrial policy expenditures, and the growing role of green industrial policies in countries industrial strategies. |
| Keywords: | new industrial policy; quantifying industrial strategies; industrial policy framework; industrial policy taxonomy; green industrial policy; Springer deal |
| JEL: | J1 R14 J01 |
| Date: | 2024–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:ehl:lserod:122361&r=ene |
| By: | Simplice A. Asongu (Oxford, UK); Sara le Roux (Oxford, UK) |
| Abstract: | The study investigates the role of governance (i.e., ‘voice & accountability’, political stability/no violence, regulatory quality, government effectiveness, corruption-control and the rule of law) in the incidence of short-term debt services on infrastructure development in the perspective of telecommunication infrastructure and access to electricity. The focus of the study is on 52 African countries for the period 2002-2021. The generalized method of moments is employed as estimation strategy and the following findings are established. Debt service has a negative unconditional effect on access to electricity and telecommunication infrastructure. Governance dynamics moderate the negative effect of debt service on infrastructure dynamics. Effective moderation is from regulatory quality and corruption-control for access to electricity and from government effectiveness, regulatory quality, corruption-control and rule of law, for telecommunication infrastructure. Policy implications are discussed. |
| Keywords: | Debt service, governance; information technology; access to electricity; Africa |
| JEL: | F34 H63 O10 O40 O55 |
| Date: | 2024–01 |
| URL: | http://d.repec.org/n?u=RePEc:agd:wpaper:24/003&r=ene |
| By: | Thang Nam Do (Crawford School of Public Policy, Australian National University); Paul J. Burke (Crawford School of Public Policy, Australian National University) |
| Abstract: | The phase-out of unabated coal power is crucial for meeting climate agreements in coal-dependent economies such as Indonesia and Vietnam. Despite both countries committing to the 2021 Global Coal to Clean Power Transition Statement, translating phase-out pledges into action poses considerable challenges. Drawing insights from interviews with government, civil society, and industry experts, this study identifies the key barriers hindering coal phase-out in each country. Concerns about potentially escalating electricity prices and power shortages loom large, with the former being more prominent in Indonesia and the latter more prominent in Vietnam. The obstacles appear particularly significant in Indonesia for reasons including its higher coal dependence. We conclude that prioritizing renewable energy growth, as well as halting the construction of new coal plants, would be the most practical and viable way forward for both countries rather than an oversized early focus on coal plant closures. The analysis is of high relevance to informing plans under the two countries’ Just Energy Transition Partnerships. |
| Date: | 2024–04 |
| URL: | http://d.repec.org/n?u=RePEc:een:ccepwp:2401&r=ene |