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on Energy Economics |
| By: | Arnita Rishanty (Bank Indonesia); Retno Puspita K. Wicaksono (Bank Indonesia); Rizkia Sari Yudawinata (WWF Malaysia, Malaysia); Siti Kholifatul Rizkiah (WWF Malaysia, Malaysia); Rafi Aquary (WWF Malaysia, Malaysia); Aurellia Puteri Arfita (WWF Malaysia, Malaysia) |
| Abstract: | Energy sector contributes significantly to emitting the largest emissions from fossil fuel combustions. Driven by the transition agenda towards a low-carbon economy, the industrial sector is expected to decarbonize its greenhouse gas (GHG) emissions by shifting from fossil fuels to renewable energy sources. This paper aims to assess climate transition risks and their impact on the banking credit portfolios of high-emitting and energy-producing sectors in Indonesia, namely coal, oil & gas, power, and automotive sectors, using the 1in1000’s TRISK framework. Using credit data from 1, 567 observations in December 2022, the findings reveal that the majority of banks are expected to experience a notable increase in expected losses (EL) and probability of default (PD) in these sectors. In summary, using the average increase of PD, excluding outlier scenarios, coal sector exhibits the highest increase in PD (45.2%), followed by power (41.5%), oil & gas (0.1%), and, lastly, automotive (0.05%). Although the highest change in PD is observed in coal sector, the highest expected loss is observed in the power sector due to large exposure that the banks have in the power sector. Study signifies the role of banks, including central banks and financial supervisors as the regulatory bodies in facilitating the transition to a low carbon economy and to support the sectoral rebalancing process of high-risk sectors exposures in banks’ portfolio. Additionally, this study also presents several recommendations based on the analysis to guide central banks, financial regulators, and the financial sector at large in managing climate risks effectively. |
| Keywords: | Banking Stress Testing, Climate Scenario Analysis, Climate Transition Risk, High-Emitting Sectors |
| JEL: | Q4 Q2 O1 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp052023 |
| By: | Dragan Crnogorac (School of Economics and Business, University of Ljubljana) |
| Abstract: | This paper investigates the determinants of carbon intensity across various economic sectors in the European Union, focusing on the period that already considers transition policies under the Paris Agreement and the Fit-for-55 initiative. As sectors exhibit diverging emission levels and transition policy implications, understanding the factors influencing carbon intensity has become increasingly relevant. We employ a panel regression analysis using data from 2014 to 2022, examining variables such as brown energy consumption share, total factor productivity, gross value added, employment metrics, energy prices, and environmental taxes. Our findings reveal that carbon intensity is influenced by a complex interplay of factors, with significant variations across sectors. Notably, sectors with high reliance on brown energy show a stronger correlation with carbon intensity levels. The results underscore the necessity for tailored transition policies that consider sector-specific characteristics to effectively reduce carbon emissions within the EU. Furthermore, the study highlights the importance of integrating economic and environmental policies to foster a sustainable transition, providing valuable insights for policymakers aiming to achieve climate targets. |
| Keywords: | Carbon Intensity, Economic Sectors, Panel Regression Analysis, GMM, EU Climate Policies, Fit-for-55 Initiative, Brown Energy Consumption, Total Factor Productivity, Sector-Specific Transition Policies |
| JEL: | Q50 C23 Q54 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516478 |
| By: | Iustina Alina Boitan (Faculty of Finance and Banking, Bucharest University of Economic Studies); Wafaa Shabban (Doctoral School of Finance, Bucharest University of Economic Studies) |
| Abstract: | The study investigates the presence of unilateral or bilateral causality relationship between country-level environmental indicators (as a component of the ESG) and main banking system indicators represented by profitability, solvency, liquidity, efficiency, credit quality and savings ratio, as well as bank concentration. Five indicators belonging to the environmental dimension of the ESG are considered, related to food security, carbon emissions and pollution, and respectively energy sources and energy security. In line with the warnings issued by European authorities regarding the potential of environmental risks to be exacerbated by the physical adverse effects of climate change, we conducted the statistical analysis with an exclusive focus on European Union countries that exhibit a temperate climate profile. Granger causality test is employed in a country-by-country approach to assess the relationship between banking system and environmental indicators, in terms of a cause ? effect framework. Findings outline a significant relationship in terms of causality between country-level environmental indicators and banking system indicators. Interestingly, two out of the five environmental indicators (agriculture, forestry, and fishing value added, and respectively CO2 emissions) are always included in at least one causal relationship with banking system indicators, for every country in the sample. The influence of environmental indicators on banking activity (unidirectional) is most pronounced and precedes banking changes especially in Spain and Portugal, with Italy positioning at the bottom of the ranking. Another result points that banking indicators in most countries considered are particularly sensitive to previous changes in the carbon emissions level, in the production of electricity and energy consumption from polluting sources such as coal or fossil fuels. In terms of bilateral causality occurrence, Greece, Portugal and Spain witness most of them. The variables most often included in the causal interplay are related on one hand to CO2 emissions and agriculture, forestry, and fishing value added, and on the other hand to bank credit to bank deposits (a proxy for bank liquidity) and bank cost to income ratio (a proxy of the operational efficiency). |
| Keywords: | Environment; CO2 emissions; Renewable energy; Fossil fuel energy, Electricity production from coal; Agriculture, Forestry, and fishing; Banking system; Granger causality |
| JEL: | G21 Q20 Q59 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516428 |
| 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: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_05_24 |
| By: | Nadeen Omar (German University in Cairo); Jens Klose (THM Business School) |
| Abstract: | Global efforts towards mitigating climate change are gaining momentum, with reducing carbon dioxide (CO2) emissions and aiming for carbon neutrality being the main goals. Economic factors are major determinants of CO2 emissions coming from production and energy consumption. This paper empirically estimates these economic effects using an unbalanced panel of 78 countries with annual data from 1990 to 2022. We employ a panel vector autoregression (VAR) model to show the dynamic response of CO2 emissions to various macroeconomic variables, including population, GDP, investment, trade, oil prices, renewable energy consumption, inflation, effective exchange rates, and nominal interest rates. Extensive robustness checks account for panel heterogeneity by splitting the sample based on geography, income levels, population density, and emission levels. The results show significant responses of CO2 emissions to shocks from population growth, GDP growth, renewable energy consumption, and interest rates. |
| Keywords: | CO2 emissions, climate change, energy consumption, economic growth, panel VAR |
| JEL: | Q54 F64 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202405 |
| By: | Gregor Schwerhoff |
| Abstract: | Electricity production is the sector with the largest share of global emissions and there are many options for decarbonizing it. Identifying the lowest cost option for achieving decarbonization (and full reliability) is a complex optimization problem at the intersection of economics and engineering. Key determinants are the cost of individual technologies, the geographical potential, the complementarities between energy sources and supporting infrastructure like electricity grids and energy storage. This paper reviews the literature on the subject and draws high-level conclusions from the abundance of specialized analyses. It finds that energy-economy models have strongly changed projections of the optimal electricity mix in recent years. While the models differ in detail, models project that the share of renewable energy, mostly solar and wind power, increases steadily in a “below 2°C” scenario and becomes the dominant source of energy by 2050. An electricity system based on solar and wind power can use flexibility options as a complement instead of baseload energy. Models vary by the degree to which renewable energy is supported by carbon capture and storage, bioenergy, and nuclear energy. |
| Keywords: | energy transition; energy economy modeling; climate policy |
| Date: | 2024–10–04 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/213 |
| By: | Louisa Chen; Koji Takahashi |
| Abstract: | We analyze how U.S. green and brown energy equity mutual funds and ETFs respond to public attention on climate change from 2006 to 2022. Our findings indicate that green fund inflows consistently increased, peaking in 2020 in reaction to climate news, while brown fund inflows steadily declined. This shift toward green investments may discourage brown investments and help mitigate the negative impacts of climate news on stock market and industry production growth. The pace of transition from brown to green funds aligns with changes in U.S. climate policy, with a faster transition associated with positive stock market performance and industry production growth. |
| Keywords: | green and brown fund flows, climate change news, evolving transition, pace of transition |
| JEL: | G11 G23 Q43 Q54 |
| URL: | https://d.repec.org/n?u=RePEc:bis:biswps:1220 |
| By: | Sabrine Emran |
| Abstract: | In the face of oil production cuts by Saudi Arabia and some OPEC members, the energy supply is shrinking again. This is in response to fears of an impending recession, higher inventories in some key countries, and an attempt to keep prices at a certain level. Turning to renewables is now essential to reduce dependence and increase resilience to energy insecurity, while non-renewable energy sources continue to show signs of unpredictability and harmful dependence. Economic outlooks vary from country to country. However, the link between energy demand and economic forecasts is stronger than ever. In this policy brief, we look at recent crude oil supply cuts, recession concerns and the outlook for renewable energy markets. In response to the different economic outlooks, a clear distinction is made between developing and developed countries, resulting in an energy demand that is more likely to come from countries such as China and India than from the major developed countries. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_22-23 |
| By: | Schultz, Alison |
| JEL: | H26 Q58 G23 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302426 |
| By: | Gian Luca Vriz; Luigi Grossi |
| Abstract: | Climate change has emerged as a significant global concern, attracting increasing attention worldwide. While green bubbles may be examined through a social bubble hypothesis, it is essential not to neglect a Climate Minsky moment triggered by sudden asset price changes. The significant increase in green investments highlights the urgent need for a comprehensive understanding of these market dynamics. Therefore, the current paper introduces a novel paradigm for studying such phenomena. Focusing on the renewable energy sector, Statistical Process Control (SPC) methodologies are employed to identify green bubbles within time series data. Furthermore, search volume indexes and social factors are incorporated into established econometric models to reveal potential implications for the financial system. Inspired by Joseph Schumpeter's perspectives on business cycles, this study recognizes green bubbles as a necessary evil for facilitating a successful transition towards a more sustainable future. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.06564 |
| By: | Rim Berahab |
| Abstract: | Green industrial policies are essential to enable the structural transformations needed for a successful transition to a low-carbon economy. Because of the pressing need to decouple economic growth from environmental degradation, it is imperative to reallocate resources strategically from carbon-intensive sectors to sustainable, high-productivity industries. This transition is critical both to mitigate the impacts of climate change and to promote long-term economic growth and sustainability. This paper examines Morocco’s green transition and identifies several key issues that must be addressed to ensure success. These include the need for a coherent institutional framework, the implementation of effective regulatory measures, and greater private-sector involvement. Furthermore, the analysis highlights the importance of regional collaboration, innovation, and research and development in overcoming challenges to a sustainable transition. It also analyses the European Union’s Carbon Border Adjustment Mechanism (CBAM) as a case study of how trade policies can be used to encourage decarbonization and align international trade practices with environmental objectives. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_13-24 |
| By: | Norbert Pfeifer; Robert Hill; Miriam Steurer |
| Abstract: | Increasing the energy efficiency of housing needs to be a key part of strategies to reach Net Zero carbon emissions by 2050. In this paper we measure the market incentives of owners to improve the energy efficiency of residential properties and how these incentives differ by location and property type. By linking sales records for England and Wales with their Energy Performance Certificates (EPCs), we create a merged micro-level dataset providing transaction price, physical and locational characteristics, energy performance, recommended energy efficiency improvements, and associated costs at the level of individual properties. We also construct a proxy for plot size using the exact geographic location and distances to neighbouring properties. We then estimate a hedonic model to predict the property price increases if all EPC recommendations were implemented. Our results reveal significant differences in market incentives across regions and property types. On average, we find that 84.4% of the costs of EPC-recommended energy efficiency improvements are capitalised in property prices for flats, as compared with 59.4% for semis/terraces and 59.3% for detached houses, although significant differences exist across regions. Subsidies targeted to regions and property types where market incentives are weakest could help reduce the cost of reaching Net Zero. |
| Keywords: | Energy Efficiency Improvements; Energy Performance Certificate; housing market |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-064 |
| By: | Langinier, Corinne (University of Alberta, Department of Economics); Ray Chaudhuri, Amrita (University of Winnipeg) |
| Abstract: | We analyze the impact of patent policies and emission taxes on green innovation. We allow for strategic interactions of firms in a duopolistic market in the presence of green conscious consumers. We identify a paradoxical effect of increasing emission taxes beyond a certain threshold which results in an increase in emissions. Decreasing patenting costs mitigates this paradox, while the impact of tightening patentability requirements is more complex. Moreover, we show that the greater the proportion of green-conscious consumers, the less likely firms are to license a green patent, which results in higher emissions levels. With green consumers, the lowest emissions occur for an intermediate range of taxes for which licensing does occur. Finally, we find that while tax increases lead to a switch from overinvestment to underinvestment in the absence of green conscious consumers, they have the reverse effect in their presence. |
| Keywords: | Patent; Green Innovation; Pollution |
| JEL: | L13 O34 Q50 |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:ris:albaec:2024_007 |
| By: | Rim Berahab |
| Abstract: | The Carbon Border Adjustment Mechanism (CBAM) has emerged as an important policy tool in the European Union's (EU) efforts to combat climate change and prevent carbon leakage. By put ting a price on carbon emissions embedded in certain goods imported into the EU, the CBAM has the potential to impact economies worldwide, including Morocco. This policy brief examines recent CBAM developments and assesses their implications for Morocco's economy and climate change efforts. It analyzes the challenges that the Moroccan economy may face, including implications for costs , competitiveness, compliance requirements, supply chain adjustments, and increased risk exposure. The brief also highlights the opportunities available to Morocco, and the importance of implementing targeted policies, strengthening the regulatory framework, promoting capacity-building initiatives, and fostering cooperation to navigate the CBAM transition period effectively . By understanding the complexities of CBAM and adopting proactive strategies, Morocco can position itself to capitalize on the opportunities and overcome the challenges presented by this transformative policy. |
| Date: | 2023–07 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_29_23 |
| By: | Fornari, Fabio; Pianeselli, Daniele; Zaghini, Andrea |
| Abstract: | We provide empirical evidence that the pricing of green bonds tends to be highly sophisticated and based on a two-tiered approach. When buying a green bond, investors do not look only at the green label of the bond but also consider additional characteristics that involve the soundness of the underlying project and the environmental score of the issuer. By comparing the yields at issuance of green bonds to those of a matched control sample of conventional bonds, we identify a premium of 16 basis points for the green label alone. However, when the environmental score of the issuer is in the top tercile of the cross-sectional distribution, the greenium increases up to doubling. Green certification and periods of heightened climate uncertainty also significantly influence the size of the greenium. Additionally, we find that this pricing mechanism fully emerged only after the Paris Agreement came into force in late 2016. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfswop:304317 |
| By: | Mounia Boucetta |
| Abstract: | Over the next decade, the energy transition will transform the global economic landscape in terms of regulations, industrial and energy investments, and technological solutions. The African continent is set to play a significant role in this transition while addressing its own sustainable development needs. To fully capitalize on this emerging dynamic, African countries should pursue innovative paths tailored to their specific contexts and constraints. They should also identify strategic levers to advance and accelerate their energy transition, maximizing economic, social, and environmental benefits. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_25-24 |
| By: | Rim Berahab |
| Abstract: | Carbon pricing mechanisms are central to mitigating climate change. These mechanisms work by internalizing the costs associated with greenhouse gas emissions, thus encouraging emissions reductions and promoting technological progress in favor of sustainable alternatives. However, the implementation of carbon pricing mechanisms faces numerous complexities and challenges, especially in developing countries, given the potentially regressive impact of carbon pricing on low-income groups, and the general lack of socio- political support. This policy paper offers a comparative review of two market-based carbon pricing strategies—carbon taxes and emissions trading systems (ETS)—to shed light on their effectiveness, implementation, and capacity to generate revenue. It also argues that carbon pricing should be integrated into a comprehensive policy framework that addresses both national priorities and international equity considerations, in order to effectively address global climate change. The effectiveness of these policies depends largely on their design and adaptation to the specific political and economic contexts in which they are implemented. |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_07-24 |
| By: | Anna Knoppik; Marcelo Cajias; Wolfgang Schäfers |
| Abstract: | Retrofit measures are critical for achieving policy-driven goals to reduce Carbon dioxide (CO2) emissions. Although the benefits of retrofitting are widely recognized, there has been limited research on how these interventions affect the pricing of assets, particularly regarding regional determinants. Predicated on the assumption that retrofits are compulsory for apartments with inadequate energy efficiency to align with regulations, an understanding of the pricing mechanism is essential. This paper therefore uses a semi-parametric model to examine the influence of energy-efficient refurbishments on the rent-to-price ratio, expressed as net initial yield, in the residential sector in Germany and explores the role of spatial variables that affect the pricing of assets. In addition, a fuzzy K-means cluster analysis is used to identify groups of assets that more likely to benefit form a retrofit. The results show that apartments in rural areas have larger rent and price deviations, which is reflected in the rent-to-price ratio. Furthermore, the analysis reveals that the yield premium from retrofitting fluctuates based on regional conditions and applicable regulations. These findings are crucial for effectively quantifying ESG measures and underline the importance of various determinants for investment decisions. |
| Keywords: | energy performance certificates; Generalized Additive Model; Machine Learning; Residential Real Estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-116 |
| By: | Tristan Jourde; Arthur Stalla-Bourdillon |
| Abstract: | This paper examines the dynamic nature of pro-environmental preferences through an analysis of sector valuations in global equity markets from 2018 to 2023. We classify companies into three groups based on their business activities: green (e.g., renewables), neutral, and brown (e.g., fossil energy). We then run panel regressions to test whether being in the green or brown sectoral category affects stock valuations. We find that investors value sector affiliation, positively for green and negatively for brown, even after controlling for other firm-level financial and extra-financial characteristics. The effect is sizeable, as we report a 24% overvaluation of companies in green sectors and a 12% undervaluation of companies in brown sectors on average compared to the rest of the market. In addition, companies in green sectors have come under increased investor scrutiny since 2018 and appear increasingly overvalued relative to the rest of the market. These results suggest that, for seemingly non-financial motives, investors have developed a strong preference for stocks in green sectors over time. |
| Keywords: | Environmental Preferences, Green Bubble, Stock Market, Stranded Assets, Valuation Ratios |
| JEL: | G10 G32 Q54 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:bfr:banfra:964 |
| By: | Mr. Philippe Wingender; Jiaxiong Yao; Robert Zymek; Benjamin Carton; Mr. Diego A. Cerdeiro; Miss Anke Weber |
| Abstract: | European countries have set ambitious goals to reduce their carbon emissions. These goals include a transition to electric vehicles (EVs)—a sector that China increasingly dominates globally—which could reduce the demand for Europe’s large and interconnected auto sector. This paper aims to size up the tradeoffs between Europe’s shift towards EVs and key macroeconomic outcomes, and analyze which policies may sharpen or ease them. Using state-of-the-art macroeconomic and trade models we analyze a scenario in which the share of Chinese cars in EU purchases rises by 15 percent over 5 years as a result of both a positive productivity shock for car production in China and a demand shock that shifts consumer preferences towards Chinese cars (given China’s dominance in the EV sector). We find that for the EU as a whole, the GDP cost of this shift is small in the short term, in the range of 0.2-0.3 percent of GDP, and close to zero over the long term. Adverse short-run effects are more significant for smaller economies heavily reliant on the car sector, mainly in Central Europe. Protectionist policies, such as tariffs on Chinese EVs, would raise the GDP cost of the EV transition. A further increase in Chinese FDI inflows that results in a significant share of Chinese EVs being produced in Central European economies, on the other hand, would offset losses in these economies by supporting their shift from supplying the internal combustion engine (ICE) production chain to that of EVs. |
| Keywords: | Electric vehicles; green transition; trade; tariffs; global value chains. |
| Date: | 2024–10–11 |
| URL: | https://d.repec.org/n?u=RePEc:imf:imfwpa:2024/218 |
| By: | Claudiu Tiberiu Albulescu (Politehnica University of Timisoara) |
| Abstract: | This paper investigates the asymmetric relationship between corporate tax avoidance and total factor productivity (TFP) using firm-level data for 141 European oil and gas companies, covering the period 2007 to 2015. Firstly, we rely on the novel mechanism advanced by Rovigatti and Mollisi (2018) to compute firms’ TFP. Secondly, we resort to Canay’s (2011) panel data fixed-effect quantile approach to assess the nonlinear, asymmetric effect that tax avoidance has on a firm’s productivity. As novelty, we use two proxy variables to estimate tax avoidance, namely companies’ holding structures and tax haven location. We discover that the impact of tax avoidance on TFP is not straightforward. On the one hand, we report mixed empirical findings regarding the impact of firms’ organization in holding structures on TFP. On the other hand, tax haven location enhances the productivity of oil and gas companies from the extractive industry. Finally, we show that the impact of tax avoidance on TFP is stronger at higher quantiles, that is, for higher levels of productivity. Our findings show that offshore profit transfers represent a quite common practice for European oil and gas firms, in particular for the large companies, which helps them to increase their productivity level. In our analysis we control for the role of ownership structure, firm size, intangibles, indebtedness and energy price dynamics. To check the robustness we use different approaches to compute the TFP. |
| Keywords: | TFP, tax avoidance, oil and gas companies, tax haven, quantile regression |
| JEL: | O |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:inf:wpaper:2024.15 |
| By: | Jonathan M. Colmer; Suvy Qin; John L. Voorheis; Reed Walker |
| Abstract: | This paper explores the relationships between air pollution, income, wealth, and race by combining administrative data from U.S. tax returns between 1979-2016, various measures of air pollution, and sociodemographic information from linked survey and administrative data. In the first year of our data, the relationship between income and ambient pollution levels nationally is approximately zero for both non-Hispanic White and Black individuals. However, at every single percentile of the national income distribution, Black individuals are exposed to, on average, higher levels of pollution than White individuals. By 2016, the relationship between income and air pollution had steepened, primarily for Black individuals, driven by changes in where rich and poor Black individuals live. We utilize quasi-random shocks to income to examine the causal effect of changes in income and wealth on pollution exposure over a five year horizon, finding that these income-pollution elasticities map closely to the values implied by our descriptive patterns. We calculate that Black-White differences in income can explain approximately 10 percent of the observed gap in air pollution levels in 2016. |
| JEL: | H0 H4 Q5 R0 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33050 |
| By: | Chlond, Bettina; Goeschl, Timo; Kesternich, Martin; Werthschulte, Madeline |
| Abstract: | Many industrialized countries have recognized the need to mitigate energy cost increases faced by low-income households by fostering the adoption of energy-efficient technologies. How to meet this need is an open question, but “behavioral insights” are likely components of future policy designs. Applying well-established behavioral insights to low-income households raises questions of transportability as they are typically underrepresented in the existing evidence base. We illustrate this problem by conducting a randomized field experiment on scalable, low-cost design elements to improve program take-up in one of the world’s largest energy efficiency assistance programs. Observing investment decisions of over 1, 800 low-income households in Germany’s “Refrigerator Replacement Program”, we find that the transportability problem is real and consequential: First, the most effective policy design would not have been chosen based on existing behavioral insights. Second, design elements favored by these insights either prove ineffective or even backfire, violating ‘do no harm’ principles of policy advice. Systematic testing remains crucial for addressing the transportability problem, particularly for policies targeting vulnerable groups. |
| Keywords: | Transportability; low-income households; field experiment; randomized controlled trial; governmental welfare programs; energy efficiency; technology adoption |
| Date: | 2024–10–22 |
| URL: | https://d.repec.org/n?u=RePEc:awi:wpaper:0755 |
| By: | Daniel Piazolo |
| Abstract: | Greenhouse gas emissions in the EU have fallen by around 31 per cent by 2022 compared to 1990 levels – covering all relevant sectors like the real estate industry but also including international aviation. The rate of reduction has increased recently, but it is still not enough to achieve the EU targets. According to the EU commission, emissions will probably fall by around 51 per cent by 2030 - which is below the target set out by the “Green Deal” of 55 per cent. The European Environment Agency (EEA) is also cautious. In December 2023, the EEA stated that reaching this target was uncertain".Many actors in the real estate sector have committed themselves to ambitious goals of achieving considerable greenhouse gas emissions reductions or even climate neutrality. Greenhouse gas emissions should therefore fall as far as possible with the remaining emissions in areas such as cement production being offset thanks to forests and other landscape sinks as well as technical solutions. However, it becomes increasingly clear to the participants in the real estate sector, that these greenhouse gas emissions reductions are very costly. Emissions in the real estate sector are falling but not fast enough. Ever since the EU adopted its climate target for the year 2030, it has been clear that the international community's climate policy ambitions especially including the real estate sector will not be achieved unless more carbon dioxide is removed from the atmosphere. |
| Keywords: | Buildings; Climate Change; Emissions Reductions |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-066 |
| By: | Miguel Vazquez; Otaviano Canuto |
| Abstract: | Low-carbon hydrogen is a potential contributor to the goals defined in the Paris Agreement, i.e. limiting the increase in the global average temperature to 1.5°C above pre-industrial levels. The transformation of hydrogen production is a part of this effort, as current production methods in the hydrogen industry are carbon-intensive. To achieve net-zero scenarios, hydrogen production and consumption will need to change. Creating a pipeline of projects plays a central role in driving overall costs down. However, notwithstanding the impressive targets and project announcements that have been made, few low-carbon hydrogen projects have reached the final investment decision stage. It is necessary to design a set of policy tools to promote low-carbon hydrogen investment. To that end, we assess the matching process between the potential supply of capital and the demand for capital associated with projects. This paper looks at the problem from the point of view of financial closure of those projects. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_09-24 |
| By: | Langinier, Corinne (University of Alberta, Department of Economics); Martinez-Zarzoso, Inmaculada (University of Goettingen); Ray Chaudhuri, Amrita (University of Winnipeg) |
| Abstract: | Our theoretical model predicts that green innovation is an inverted U-shaped function of emission tax under free trade, while it is upward sloping under autarky. Our empirical analysis supports this finding by using the Environmental Policy Stringency Index (EPS) as a proxy for environmental regulations. Our theory also determines the conditions under which international technology transfers increase green innovation. The empirical results indicate that technology transfers increase green innovation at any given level of EPS, although the inverted U-shape persists. We observe that OECD and non-OECD countries lie on either side of the turning point. Implementing stricter environmental regulations in non-OECD countries increases green innovation, while the reverse is likely to hold for most OECD countries. Our findings also show that market-based regulations are more effective in non-OECD countries for fostering green innovation, while non-market-based regulations are more effective in OECD countries. |
| Keywords: | Green Innovation; Environmental Policy; International Trade; Technology Transfer |
| JEL: | O34 Q55 Q56 Q58 |
| Date: | 2024–10–10 |
| URL: | https://d.repec.org/n?u=RePEc:ris:albaec:2024_008 |
| By: | Joshua McGillivray; Anatoliy Swishchuk |
| Abstract: | We define a new model using a Hawkes process as a subordinator in a standard Brownian motion. We demonstrate that this Hawkes subordinated Brownian motion or more succinctly, variance-Hawkes process can be fit to 2018 and 2019 natural gas and crude oil front-month futures log returns. This variance-Hawkes process allows financial models to easily have clustering effects encoded into their behaviour in a simple and tractable way. We also compare the simulations of a square of a variance Hawkes process with its Ito formula. We simulate both processes and compare their distributions, trajectories, and percent errors across multiple runs. We derive the generator relating to this Hawkes subordinated Brownian motion, calculate several moments, and conjecture its distribution. We also provide explicit solutions to the second moments of the Hawkes process and its intensity as well as the cross moment between the Hawkes process and its intensity in the case of an exponential kernel. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.08420 |
| By: | Sabrina Camélia Pagop; Luc Savard |
| Abstract: | This study conducts an in-depth exploration of the increasing interest in voluntary carbon markets (VCMs) in Africa, shedding light on the potential opportunities and challenges associated with African participation in these markets. VCMs have gained prominence as promising means to address climate change, driven by substantial financial incentives and market expansion. Nonetheless, persistent debates revolve around the legitimacy of carbon credits and their tangible contributions to climate change mitigation and adaptation. Drawing from secondary data sources, this research undertakes a comprehensive analysis of the theoretical foundations of carbon markets, the historical evolution of VCM initiatives in Africa, and the specific challenges and opportunities that beckon African nations towards more active involvement. Historically, African countries have primarily been passive beneficiaries of VCMs. Therefore, this study aims to provide insights about how African countries can strategically navigate these markets to maximize their potential benefits for sustainable development while contributing meaningfully to climate change mitigation and adaptation endeavors. |
| Date: | 2024–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_05-24 |
| By: | Simplice A. Asongu (Yaoundé, Cameroon); Amarachi O. Ogbonna (Yaoundé, Cameroon); Mariette C. N. Mete (Yaoundé, Cameroon) |
| Abstract: | The present research extends the extant literature by investigating the hypothesis on whether marriage can be a substitute for financial inclusion in energy poverty reduction in Ghana. Pooled data and two stage least squares techniques are used in the estimation process and the validity of the tested hypothesis (i.e., that marriage is a substitute for financial inclusion in energy poverty mitigation) is based on two main criteria: (i) a positive interactive effect relative to the negative unconditional effect of marriage; (ii) a marriage net effect lower in magnitude compared to the unconditional effect of marriage and (iii) an insignificant interactive effect when both unconditional effects are negative. The investigated hypothesis is not valid in the full sample, urban sub-sample and female sub-sample while it is valid in the rural and male sub-samples. Policy implications are discussed. |
| Keywords: | Energy poverty; financial inclusion; consumption poverty; education; household income |
| JEL: | D03 D12 D14 I32 Q41 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/031 |
| By: | Ben Höhn; Sven Bienert; Yannick Schmidt |
| Abstract: | We introduce a comprehensive scoring model designed for both listed and non-listed companies within the real estate sector, offering a systematic approach to evaluate and benchmark their progress in achieving Net Zero commitments. The guide encompasses five distinct implementation categories, namely Targets, Strategies, Organizational Structure, Operational Measures, and Tracking/Monitoring/Reporting. These categories are identified through a prior qualitative study, which involves an extensive examination of Net Zero strategies and expert interviews. Utilizing these identified measures, we have developed a framework and executed an extensive survey involving ESG professionals in the industry representative of companies exceeding $1, 000 billion in AuM. The goal is to establish a ranking system for these measures, ultimately leading to the creation of a robust scoring system to assess holistic strategies. The implemented scoring system contributes to this initiative in three significant ways. Firstly, it streamlines the process for companies seeking to commit to net-zero carbon emissions by providing a structured evaluation framework. Secondly, it aids in pinpointing potential gaps in green actions within the strategies of these companies. Lastly, it enhances the transparency surrounding the quality of net-zero commitments, thereby mitigating the risk of (unintentional) greenwashing practices. |
| Keywords: | Decarbonization; Net Zero; Scoring Model; Transition risk |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-035 |
| By: | Bonetti, Pietro; Leuz, Christian; Michelon, Giovanna |
| Abstract: | The rise of shale gas and tight oil development has triggered a major debate about hydraulic fracturing (HF). In an effort to bring light to HF practices and their potential risks to water quality, many U.S. states have mandated disclosure for HF wells and the fluids used. We employ this setting to study whether targeting corporate activities that have dispersed externalities with transparency reduces their environmental impact. Examining salt concentrations that are considered signatures for HF impact, we find significant and lasting improvements in surface water quality between 9-14% after the mandates. Most of the improvement comes from the intensive margin. We document that operators pollute less per unit of production, cause fewer spills of HF fluids and wastewater and use fewer hazardous chemicals. Turning to how transparency regulation works, we show that it increases public pressure and enables social movements, which facilitates internalization. |
| Keywords: | Environmental regulation, Fracking, Real effects, Disclosure, Water pollution, Sustainability, Corporate social responsibility, Externalities, Unconventional oil & gas development |
| JEL: | D62 G38 K22 K32 L71 L72 M41 M48 Q53 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:cfswop:304316 |
| By: | Dobrinka Stoyanova (Department of Economic Science, University of Plovdiv Paisii Hilendarski); Blaga Madzhurova (Department of Economic Science, University of Plovdiv Paisii Hilendarski); StefanBlaga Raychev (Department of Economic Science, University of Plovdiv Paisii Hilendarski) |
| Abstract: | This study investigates Bulgaria's economic convergence with the EU27, focusing on unemployment rates and GDP per capita from 2012 to 2022. Employing Beta, Gamma, Sigma, and Delta convergence measures, the research assesses the extent of Bulgaria's alignment with the economic performance of its EU counterparts. Additionally, the study critically examines the impact of Bulgaria's green transition?measured through recycling rates and renewable energy usage?on these convergence processes. The findings reveal a complex picture: while Bulgaria demonstrates strong Gamma and Delta convergence, suggesting improvements in its relative economic standing and a reduction in absolute disparities with the EU27, the absence of Beta and Sigma convergence indicates that overall economic growth and variability reduction remain insufficient for full integration. Furthermore, the analysis shows that although green transition efforts have positively influenced certain convergence aspects, they have not significantly contributed to broader economic alignment with the EU27. The study concludes that while Bulgaria is making notable progress in some convergence metrics, achieving comprehensive economic integration with the EU27 will require more robust and diversified policy interventions. The findings underscore the necessity for Bulgaria to enhance its environmental strategies with broader economic policies to effectively close the remaining gaps with its EU counterparts. |
| Keywords: | Economic Convergence, Bulgaria, EU27, Unemployment Rates, GDP per Capita, Beta Convergence, Gamma Convergence, Sigma Convergence, Delta Convergence, Green Transition, Recycling Rates, Renewable Energy, Economic Integration |
| JEL: | O47 Q56 E24 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516476 |
| By: | Stern, Lennart |
| JEL: | F55 F53 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302448 |
| By: | Ash, Thomas; Nikolaishvili, Giorgi |
| Abstract: | Metcalf and Stock (2023) find that an increase in carbon tax has a weakly positive effect on output and employment, along with a negative effect on C02 emissions over a 6-year horizon. The paper identifies a carbon tax shock and uses it to quantify the effect of a permanent unexpected increase in the carbon tax rate. The effect of this increase is obtained using a policy counterfactual exercise based on dynamic effects estimated using panel local projections. We use the authors' own Stata replication package to reproduce the main results of the paper and carry out additional robustness tests. We also conduct these empirical analyses using popular open-source econometric libraries in R. We compare the original permanent carbon tax increase policy counterfactual impulse responses to standard one-time carbon tax shock impulse responses. The justification for this robustness test is that carbon tax rate changes are persistent, so that a transitory shock effectively mimics a permanent shock. We find that (1) the authors' replication package successfully reproduces the results of the paper; (2) alternative local projection specifications and policy counterfactuals largely exhibit the same qualitative properties as the main results of the paper. |
| Keywords: | carbon tax, policy counterfactual, panel local projection |
| JEL: | E23 E24 H23 Q54 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:167 |
| By: | Banzhaf, H. Spencer; Mathews, William; Walsh, Randall |
| Abstract: | This study examines the relationship between racial segregation and environmental equity in Pittsburgh from 1910 to 1940. Utilizing newly digitized historical data on the spatial distribution of air pollution in what was likely America’s most polluted city, we analyze how racial disparities in exposure to air pollution evolved during this period of heightening segregation. Our findings reveal that black residents experi- enced significantly higher levels of pollution compared to their white counterparts, and this disparity increased over time. We identify within-city moves as a critical factor exacerbating this inequity, with black movers facing increased pollution expo- sure. In contrast, European immigrants, who were also initially exposed to relatively high levels of pollution, experience declining exposure as they assimilate over this time period. We also provide evidence of the capitalization of air pollution into hous- ing markets. Taken as a whole, our results underscore the importance of considering environmental factors in discussions of racial and economic inequalities. |
| Keywords: | Environmental Economics and Policy |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:ags:nccewp:347603 |
| By: | Therese E. Zogo (University of Yaoundé II, Cameroun); Christophe M. Mbassi (University of Yaoundé II, Cameroun); Simplice A. Asongu (Johannesburg, South Africa) |
| Abstract: | This paper assesses the effects of coups on access to electricity in Sub-Saharan Africa (SSA). The study covers a sample of 40 sub-Saharan African countries over the period 1980-2017. The econometric approach employed is the generalized method of moments (GMM). While the extant literature has established that political instability can have both positive and negative effects on access to basic public goods and services, the present study finds that coups significantly reduce access to electricity in SSA. This effect is the same regardless of the type of coup, notably: successful, failed, military or civilian coups. Thus, coups are not conducive for the establishment of real democratic transitions in the region which inter alia, are necessary to promote development outcomes such as access to electricity. |
| Keywords: | Coups d’état; Access to electricity |
| JEL: | D74 H41 |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/019 |
| By: | Zhang, Kesen; Pan, Zhen; Zhang, Keming; Ji, Feng |
| Abstract: | Background: The goal of “peak carbon and carbon neutrality” has pointed out the direction for the digital transformation (DIT) of enterprises. Companies need to pay a price when they seek green development or fulfill environmental responsibility. Out of self-interest, enterprises may exaggerate their environmental performance (EP) and then greenwashing behavior appears. Whether DIT can curb greenwashing behavior is a topic worth discussing. Objective: This paper proposes a theoretical framework for the influence of DIT on greenwashing and further discusses how government subsidies, resource slack, and external pressure affect them. The data of China’s listed A - share companies are used to test this theoretical framework. Methods: In this paper, multiple linear regression method is used to test the theoretical mechanism, and Hausman test and instrumental variable method are used to test the correctness of the conclusions. Results: (1) DIT has an inhibitory effect on greenwashing. (2) Government subsidies, resource slack, and public pressure positively moderate the relationship. (3) The effect of DIT does inhibit symbolic behavior, but the impact on substantive behavior is not obvious. The moderating effects of various variables are also different. Discussion: It is suggested that the government take the lead in building more digital public participation platforms to improve the online monitoring and early warning ability of enterprises’ greenwashing behavior, tourge enterprises to configure more intelligent and digital cleaner production equipment and facilities, and to improve their environmental performance. Local governments are encouraged to seize the trend of enterprises’ digital green transformation, introduce more government subsidy policies for DIT, improve digital infrastructure and digital intellectual property protection, and escort enterprises’ green DIT. The government and the banks should cooperate to give more green preferential loans, tax relief, and other measures to enterprises undergoing green DIT. |
| Keywords: | digitisation; digitization; environmental responsibility; greenwashing; legitimacy theory; resources slack |
| JEL: | R14 J01 |
| Date: | 2023–06–02 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125707 |
| By: | Beate Fischer (University of Kassel, Institute of Economics); Tom Schütte (University of Kassel, Institute of Economics); Heike Wetzel (University of Kassel, Institute of Economics) |
| Abstract: | This study evaluates whether a residential solar mandate in the case of roof renovation is a useful complement to economic incentives for further photovoltaics (PV) adoption. Analyzing determinants affecting PV ownership and installation intentions among single-family homeowners, as well as factors influencing support for a solar mandate and perceptions of its effectiveness, our empirical results, based on a survey of German utility customers, show that a residential solar mandate is a rather unpopular policy measure among homeowners. However, a solar mandate addresses two important factors which increase the willingness to install PV: firstly, the perception that the personal environment expects more PV, and secondly, an upcoming roof renovation. Both social desirability and a favorable time window can be institutionalized through a solar mandate. In terms of support for a solar mandate, we find that the perceived effectiveness of such a mandate has a strong influence on homeowner support. Perceived effectiveness, in turn, is closely related to perceived cost savings and perceived environmental benefits of PV. Based on these results, we conclude that an active information policy regarding the environmental and cost implications of PV expansion is essential to increase the acceptance of a solar mandate. |
| Keywords: | Photovoltaics, solar mandate, public support, empirical analysis |
| JEL: | D12 Q42 Q48 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:mar:magkse:202402 |
| By: | Cimini, Francesco; Kalantzis, Fotios |
| Abstract: | This study examines the impact of green and digital investments on the investment inefficiency level of European firms. We define investment inefficiency as the deviation from the optimal investment level, which depends on both the net present value (NPV) of the projects and the marginal benefit and cost of investment. Leveraging matched data from the European Investment Survey (EIBIS) and ORBIS, which results in a sample of 4, 892 firmyear observations from 27 European countries surveyed over the period 2021-2023, we employed a panel data regression model to estimate the effect of green and digital investments on investment inefficiency. Our analysis shows that both types of investments reduce investment inefficiency, particularly for under-investing firms. We also find evidence of a statistically significant interaction effect between green and digital investments for over-investing firms, suggesting that digital technologies can enhance the efficiency gains from green investments. Our results have important implications for policy makers and business managers who aim to foster the twin digital and green transition in Europe and improve their investment efficiency and competitiveness. |
| Keywords: | European Investment Bank Investment Survey, Investment Inefficiency, Green investment, Digital investment, Twin transition |
| JEL: | M41 G31 Q53 O33 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:eibwps:304395 |
| By: | Philippe Bergault; Enzo Cogn\'eville |
| Abstract: | This paper presents a novel model for simulating and analyzing sparse limit order books (LOBs), with a specific application to the European intraday electricity market. In illiquid markets, characterized by significant gaps between order levels due to sparse trading volumes, traditional LOB models often fall short. Our approach utilizes an inhomogeneous Poisson process to accurately capture the sporadic nature of order arrivals and cancellations on both the bid and ask sides of the book. By applying this model to the intraday electricity market, we gain insights into the unique microstructural behaviors and challenges of this dynamic trading environment. The results offer valuable implications for market participants, enhancing their understanding of LOB dynamics in illiquid markets. This work contributes to the broader field of market microstructure by providing a robust framework adaptable to various illiquid market settings beyond electricity trading. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.06839 |
| By: | Blaga Madzhurova (Department of Economic Science, University of Plovdiv Paisii Hilendarski); Dobrinka Stoyanova (Department of Economic Science, University of Plovdiv Paisii Hilendarski); Stefan Raychev (Department of Economic Science, University of Plovdiv Paisii Hilendarski) |
| Abstract: | This study investigates the relationship between environmental health impacts, particularly premature deaths due to fine particulate matter (PM2.5) exposure, and labour market outcomes across European Union (EU) member states from 2012 to 2021, with a special focus on Bulgaria. Utilizing a mixed-method approach that combines graphical analysis and PanelOLS regression modelling, the research examines how air pollution influences long-term unemployment and employment rates within the EU. The findings reveal a statistically significant negative correlation between PM2.5-related premature deaths and employment rates, suggesting that poor air quality contributes to lower labour market performance. Bulgaria exhibits a notable intersection of high long-term unemployment and environmental health challenges, highlighting the compounded effects of economic and environmental factors on labour market outcomes. This study underscores the importance of integrating environmental considerations into economic and labour market policies, especially for countries like Bulgaria that face significant challenges in both areas. By addressing these dual challenges, Bulgaria and other EU member states can enhance public health, improve labour market outcomes, and support a more sustainable and resilient economic future. The research contributes to the discourse on sustainable development, emphasizing the need for policies that simultaneously promote environmental health and economic productivity within the European Union. |
| Keywords: | Green transition, Labour market, Unemployment, Growth, Environmental health, PM2.5 Exposure, Air Pollution, Long-term Unemployment |
| JEL: | Q53 J64 I15 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:sek:iefpro:14516475 |
| By: | Leonardo STANLEY (Center for the Study of State and Society - CEDES (Argentina)); Francisco CASTAÑEDA (School of Economics, Government and Communications, Universidad Central de Chile (Chile)); Nassib SEGOVIA (School of Economics, Government and Communications, Universidad Central de Chile (Chile)) |
| Abstract: | In recent decades an important resource-accumulating agent, whose financial investments have spread across the world, has emerged: The Sovereign Wealth Fund (SWF). This capital comes chiefly from economies that control natural resources and from budget surpluses that some nations can generate. The principal players are in the Middle East and Asia, whose resources come from oil and associated exports. SWFs, with their huge investment portfolios, have taken control of companies around the world, becoming, in turn, not just a principal provider of resources for the businesses but also creditors of various countries, with the objective of diversifying their investment portfolios. In practical terms, SWFs are state-owned investment vehicles that invest globally in various types of assets ranging from financial to real to alternative assets. The main purposes for their establishment are stabilising government and export revenues (fiscal), accumulation of savings for future generations in resource-rich countries to offset the future lack of natural resources (savings), and or/the management of foreign reserves. SWFs, however, could be pursuing more than one objective, mixing macro (fiscal, savings, reserves management) and development issues. SWFs are then capable of solving the Dutch Disease that characterise natural resource rich countries, even having a key role in transforming the economic structure. Developmental issues were basically associated with (traditional) industrial policies; SFWs goals, however, have recently, although timidly started to expand to include sustainable goals, as climate change issues. In Latin America, SWFs have mainly pursued macro-stabilization goals, whereas development related objectives are increasingly considered by funds in Asia and Africa. Furthermore, whereas the latter group has timidly begun to explore and invest in "green", Latin America keeps ignoring the issue due to its fiscal restrictions and urgent needs of income. |
| Keywords: | Sovereign funds, Climate change, energy transition, Investments and Financing |
| JEL: | F3 F55 H23 Q01 |
| Date: | 2024–06 |
| URL: | https://d.repec.org/n?u=RePEc:crc:wpaper:2406 |
| By: | Moll, Ben; Schularick, Moritz; Zachmann, Georg |
| JEL: | J1 |
| Date: | 2023–09–27 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:120515 |
| By: | Jennifer Schäfer |
| Abstract: | This systematic literature review examines the role of environmental, social, and governance (ESG) factors within the smart home innovation-decision process. Due to the potential for smart home technologies (SHTs) to foster sustainability, which is a superordination of ESG, such analysis is critical. Within the smart home context, no article combines all three ESG components in one body of research. The literature also does not distinctly connect ESG aspects with the innovation-decision process. Understanding this potential connection could help to increase the adoption of SHTs. By applying an open coding process, this literature review integrates ESG factors into the five stages of the innovation-decision process. Findings from this framework extension suggest that, environmentally, the literature covers ecological facets, energy efficiency, and sustainability. Socially, acceptability, psychology, socialization, sociodemographic implications, societies, and networks are significant. While governance factors address board characteristics and business models, further research is necessary. Moreover, future research should differentiate between the investor and the end-consumer perspective while enhancing insights on all three ESG components. |
| Keywords: | Esg; Innovation-decision process; literature review; Smart home technologies |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-014 |
| By: | Donni Fajar Anugrah (Bank Indonesia); Arnita Rishanty (Bank Indonesia); Maxensius Tri Sambodo (National Research and Innovation Agency); Ade Dwi Aryani (Bank Indonesia) |
| Abstract: | This research provides a new perspective on developing Indonesia's critical mineral industry ecosystem from the standpoint of business practitioners and experts. Despite Indonesia's significant potential in critical mineral resources, the success of downstream development is determined by how well the upstream and downstream ecosystems can be strengthened. This includes improving raw material and material efficiency, building a strategic position in the global value chain, ensuring long-term supply sustainability, stimulating local demand, prioritizing the use of green energy, enhancing effective hazardous waste management, and addressing social issues in mining and processing areas. The analysis of Net Present Value (NPV) and Internal Rate of Return (IRR) in nickel downstream development indicates that, although substantial investment is required, a quicker return on investment can be achieved through technological changes, such as adopting pyrometallurgy. The NPV and IRR evaluation in copper downstream development demonstrates the economic feasibility of processing copper concentrate, showing significant profitability. The copper industry continues to grow with added value in the value chain, highlighting the economic benefits of copper downstream development. The prospects for downstream development of bauxite and aluminum are also promising. Based on NPV results, brownfield projects appear more economically viable than greenfield projects. Thus, the downstream development of critical minerals in Indonesia necessitates collaboration between the private sector (national and global) and the government to balance economic, social, and environmental objectives. |
| Keywords: | critical minerals, downstream, firm-level, value-added |
| JEL: | L72 O13 Q32 |
| Date: | 2023 |
| URL: | https://d.repec.org/n?u=RePEc:idn:wpaper:wp062023 |
| 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: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_41-23 |
| By: | Aya Nasreddine; Yasmine Essafi Zouari |
| Abstract: | Using the wavelet quantile correlation (WQC) methodology, we measure the suitability of gold, silver, oil, stocks as well as the French and the G7 countries indirect real estate to hedge against global and energy inflation. The WQC allows us to deal with time-varying characteristics of time series and to capture tail dependence. Besides, it has the advantage of dissolving the correlation structure between asset returns and inflation across different timescales, enabling us to consider different investment horizons. Recorded results over the 2000-2023 period show that the response to inflationary pressures varies according to the asset class, the holding period as well as the type of inflation considered. Whereas precious metals seem to be suitable over short term maturities, French listed real estate displays interesting inflation hedging features as the investment horizon lengthens. Oil emerges as an equivocal hedge against both global and energy inflation. |
| Keywords: | Indirect real estate; Inflation Hedging; Investment horizon; Wavelet quantile correlation |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-092 |
| By: | Caro, Florian; Labovich, Asher; Okechi, Chidubem; Reinstein, David; Rodrigues, Maria Clara |
| Abstract: | Colantone et al. (2024a) use survey data to examine how a major ban on combustion engine cars in Milan, Italy affected voting behavior of treated car owners. The authors find that the ban raised the probability of voting for the populist right wing Lega party by 15.4-18.3 percentage points, a 70-80% increase relative to the average car owner. The estimate is statistically significant at the 5% level. These effects are driven by dissatisfaction with money losses rather than more antagonistic attitudes towards environmental protection. In this report, we inspect the data and replication package of the paper with two sets of exercises. First, we successfully computationally reproduce all the main results of the paper. Second, we test the robustness of the authors' main results by exploring different definitions of control variables, variations in the regression specifications, and alternative econometric models and research designs. Our results generally confirm the authors' conclusions, but are smaller in magnitude and suggest that the ATTs in the original paper might have been overstated. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:i4rdps:168 |
| 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: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_33-23 |
| By: | Miguel Ángel Rodríguez López; Diego Rodríguez Rodríguez |
| Abstract: | El objetivo de este trabajo es ofrecer un panorama general sobre los principales campos de aplicación de las técnicas de datos masivos en el ámbito de la energía. Como podrá comprobarse, esos ámbitos son muy variados, por lo que el trabajo pretende también aportar intuición sobre el tipo de cuestiones que generan más interés o que probablemente recibirán más atención en los próximos años, dada su relevancia en el ámbito de la transición energética. Para ello, en el segundo apartado se realiza una aproximación muy introductoria a la transición energética y al estado de desarrollo de distintas tecnologías y estrategias que son claves en el proceso de descarbonización. A continuación, en el tercer apartado, se describen de un modo sencillo las principales aproximaciones metodológicas para el uso masivo de datos. El apartado cuarto motiva y muestra la aplicación de esas técnicas en diversas áreas claves en el área de la transición energética en el ámbito de la electricidad, como la predicción de la generación y los precios, la agregación de la demanda, la integración de las baterías o la demanda de calefacción, entre otros. El quinto apartado extiende esa aproximación a otros vectores no eléctricos, en particular el gas y el petróleo. Por último, el sexto apartado cierra el trabajo con algunas reflexiones finales. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:fda:fdaddt:2024-08 |
| By: | Francis Perrin |
| Abstract: | À la fin de la COP28, qui s’est tenue à Doubaï (E mirats arabes unis) du 30 novembre au 13 décembre 2023, les E tats 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 E tats 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: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_47-23 |
| By: | Otaviano Canuto Hinh T. Dinh Karim El Aynaoui Hafez Ghanem Badr Mandri |
| Abstract: | This policy brief was originally published on T20 India website A decade of poor growth, increased poverty, and political instability followed the serious debt difficulties that emerged worldwide in the 1980s. There are concerns that the looming debt crisis could create similar challenges and result in even more severe consequences. However, the current economic climate differs in many ways from that of the 1980s, when international banks and Paris Club creditors held most of the external debt. Today, the profile of creditors is more diverse, and the mechanisms established by the G20 and multilateral development banks to address this new crisis are partly based on outdated approaches that are no longer effective in adapting to new realities. As a result, a more holistic and integrated approach is required to address the challenges of external debt faced by developing countries, particularly in Africa. Such an approach should take into account the issue of over-indebtedness while also addressing climate protection, the most pressing issue of the 21st century. A promising solution to tackling these challenges could be a new debt reduction initiative focused on climate action. This policy brief recommends a ‘Debt Relief for Climate Initiative’ that will link debt reduction with investments in climate adaptation and mitigation projects. |
| Date: | 2023–06 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rtrade:none |
| By: | Magdalena Potz (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université, AMU - Aix Marseille Université); Solange Hernandez (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université, AMU - Aix Marseille Université); Sarah Serval (CERGAM - Centre d'Études et de Recherche en Gestion d'Aix-Marseille - AMU - Aix Marseille Université - UTLN - Université de Toulon, AMU IMPGT - Institut de management public et de gouvernance territoriale - AMU - Aix Marseille Université, AMU - Aix Marseille Université) |
| Abstract: | This chapter analyzes the French Citizens Convention for Climate (CCC), a democratic experiment in public policy cocreation, responding to climate change and the democratic crisis. The CCC, involving 150 citizens, aimed to propose measures for reducing greenhouse gas emissions. Despite producing 149 proposals, the government's limited implementation led to widespread dissatisfaction, which highlights the complexities of policy cocreation. Through textual statistics analysis, the study reveals the "wicked" nature of cocreation, intensified by diverse values and interests among participants. It underscores the critical need for the government's political readiness and absorptive capacity in cocreation processes. While citizens showed commitment and capability, political-administrative elites displayed resistance, indicating a policy capacity gap. This resistance not only undermined the CCC's efforts but also exacerbated public distrust in political processes. The CCC's experience suggests that future cocreation initiatives in public policy must better integrate with political decision-making. The balance between standardization and contextual adaptation is key to effectively addressing complex societal issues. This chapter advocates for close monitoring of cocreation applications in public policy to assess their effectiveness in resolving societal challenges. |
| Keywords: | Absorptive capacity, citizen participation, cocreation, policy capacity, wickedization |
| Date: | 2024–07–24 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04714400 |
| By: | Heinrichs, Sven; Isselstein, Franz |
| Abstract: | Climate change exists and poses a great threat to all living beings on our planet. Any further delay in global action on mitigation will make it more difficult to secure a liveable and sustainable future for all. In this exploratory study, an inductive approach based on qualitative evidence from expert interviews as well as literature is applied to assess the economic feasibility of ecologically enhancing unused land with an initial focus in Germany and using the so far limited financing potential of blockchain token to incentivize project participation and let investors earn sustainable returns from carbon sequestration and probable future biodiversity rewards. Security token offerings can be a valuable alternative for business and project financing. Tokenization reduces transaction costs through automation and disintermediation, supporting transparency and liquidity. The creation of agroforestry systems can serve as an effective way to benefit the environment as well as agriculture. Private funding initiatives are highly demanded for such activities as government subsidies diminish. Financial modelling shows that under the given assumptions the project can be economically feasible, providing returns comparable to benchmarks for agriculture investments and a positive Net Present Value. However, the expert interviews show, that the lease model / user right schematic should not be neglected and needs to be investigated further as it promises highly promising results. |
| Keywords: | Carbon Sequestration, Security Token, Security Token Offering, Blockchain, climate finance, HedgeToken |
| JEL: | Q57 Q52 Q58 G23 O31 Q01 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:iubhbm:304401 |
| By: | König, Jörg |
| Abstract: | Deutschland hat beschlossen, bis spätestens 2045 klimaneutral zu werden. Dazu wird im Rahmen der Energiewende ein grundlegender Umbau des deutschen Energiesystems angestrebt, den die Politik mit großen Kraftanstrengungen vorantreibt. Bei der Umsetzung der Energiewende- und Klimapolitik wird vor allem ein planerischer Ansatz verfolgt, bei dem der Staat am grünen Tisch passgenau festzulegen versucht, welche Regulierungen und Subventionen die einzelnen Sektoren und Technologien benötigen, um die ambitionierten Klimaziele zu erreichen. Inzwischen wird immer deutlicher, dass dieser von Dirigismus und Wissensanmaßung geleitete Ansatz verfehlt ist: Deutschlands Energiewende ist konkurrenzlos teuer, die Energieversorgung ist perspektivisch nicht gesichert, die erzielten CO2 -Einsparungen sind überschaubar und das versprochene "grüne Wirtschaftswunder" bleibt aus. Die Energiewende wirkt, nur leider in eine Richtung, die den Wohlstand des Landes bedroht. Die politischen Maßnahmen sind oft nicht aufeinander abgestimmt, was dazu führt, dass positive Wirkungen des Emissionshandels durch eine Vielzahl lenkender Eingriffe überlagert werden. Es ist daher nicht verwunderlich, dass die deutsche Energiewende keine internationalen Nachahmer findet und die Stimmung in weiten Teilen der Gesellschaft und Wirtschaft in Bezug auf die Umsetzung der Energiewende gekippt ist: Ein zunehmender Teil der Bevölkerung ist mit der Energiewende- und Klimapolitik unzufrieden, während immer mehr Unternehmen planen, ihre Produktion einzuschränken oder ins Ausland zu verlagern [...] |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:smwarg:304394 |
| By: | Sébastien Shulz (COSTECH - Connaissance Organisation et Systèmes TECHniques - UTC - Université de Technologie de Compiègne, IFRIS - Institut francilien recherche, innovation et société - EHESS - École des hautes études en sciences sociales - OST - UPEM - Université Paris-Est Marne-la-Vallée - M.E.N.E.S.R. - Ministère de l'Education nationale, de l’Enseignement supérieur et de la Recherche - ESIEE Paris - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement, LISIS - Laboratoire Interdisciplinaire Sciences, Innovations, Sociétés - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Université Gustave Eiffel) |
| Abstract: | After a mixed start, the market for short-distance car-sharing platforms is now booming, with considerable public support in the name of the ecological transition of the mobility sector. Yet the solution of a market of digital platforms to meet the environmental challenges of the private car is not self-evident. To understand how this alignment came about, I carried out a survey through semi-structured interviews (N=22), the collection of grey literature and press articles (N=698), and the observation of the socio-technical characteristics of the main platforms (N=5). I analyzed this material by placing myself at the crossroads between the sociology of the political construction of markets and the sociology of market arrangements. The article shows why and how the state favors the techno-market capitalist platform model over the other two models (cooperative and social utility), helping to build an economy of capture. It concludes with a discussion of the tension between the state's objectives of greening the mobility sector, and its support for capitalist platforms whose model is likely to generate "rebound effects". |
| Abstract: | Après des débuts mitigés, le marché des plateformes de covoiturage courte distance connaît un essor et un soutien public importants au nom de la transition écologique du secteur de la mobilité. Pourtant, la solution d'un marché de plateformes numériques en vue de répondre aux enjeux environnementaux de la voiture individuelle ne va pas de soi. Pour comprendre comment cet alignement a été opéré, j'ai mené l'enquête à travers des entretiens semi-directifs (N=22), la récolte de littérature grise et d'articles de presse (N=698), ainsi que l'observation des caractéristiques sociotechniques des principales plateformes (N=5). J'ai analysé ce matériau en me plaçant au croisement au croisement de la sociologie de la construction politique des marchés et la sociologie des agencements marchands. L'article montre pourquoi et comment l'État favorise le modèle des plateformes capitalistes techno-marchandes par rapport aux deux autres modèles (coopératif et d'utilité sociale) en contribuant à construire une économie de la captation. Il conclut sur la tension entre les objectifs d'écologisation du secteur de la mobilité porté par l'État, et son soutien aux plateformes capitalistes dont le modèle est susceptible d'entraîner des « effets rebonds ». |
| Keywords: | Platform, Car-sharing, Digital economy, Political construction of markets, Ecological transition, Plateforme, Covoiturage, Economie numérique, Construction politique des marchés, Transition écologique |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04715550 |
| By: | Charles Hodgson |
| Abstract: | Information spillovers between firms can reduce R&D incentives if competitors can free ride on innovations. However, strong property rights may impede cumulative research and lead to inefficient duplication. These effects are particularly relevant in natural resource exploration, where discoveries are spatially correlated. Using UK offshore oil exploration data, I estimate a dynamic model that captures the trade-off between drilling now and waiting to learn from competitors. Removing free-riding incentives increases industry surplus by 52%, while perfect information flow raises it by 24%. Counterfactual policy simulations highlight a trade-off in property rights design: stronger property rights over exploration well data increase the rate of exploration, while weaker property rights increase the efficiency and speed of learning but reduce the rate of exploration. Spatial clustering of each firm's drilling licenses both reduces the incentive to free ride and increases the speed of learning. |
| JEL: | L0 L72 O30 O32 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33067 |
| By: | Marc Bidan (LEMNA - Laboratoire d'économie et de management de Nantes Atlantique - Nantes Univ - IAE Nantes - Nantes Université - Institut d'Administration des Entreprises - Nantes - Nantes Université - pôle Sociétés - Nantes Univ - Nantes Université); Hugues Ferreboeuf (The Shift Project. Redesigning the economy to achieve carbon transition); Laurie Marrauld (ARENES - Arènes: politique, santé publique, environnement, médias - UR - Université de Rennes - Institut d'Études Politiques [IEP] - Rennes - EHESP - École des Hautes Études en Santé Publique [EHESP] - UR2 - Université de Rennes 2 - CNRS - Centre National de la Recherche Scientifique, EHESP - École des Hautes Études en Santé Publique [EHESP], IDM - Institut du Management - EHESP - École des Hautes Études en Santé Publique [EHESP]); Florence Rodhain (MRM - Montpellier Research in Management - UM1 - Université Montpellier 1 - UPVM - Université Paul-Valéry - Montpellier 3 - UM2 - Université Montpellier 2 - Sciences et Techniques - UPVD - Université de Perpignan Via Domitia - Groupe Sup de Co Montpellier (GSCM) - Montpellier Business School) |
| Abstract: | L'informatique en nuage et les pratiques qui s'y rattachent sont l'une des activités les plus énergivores de tout l'écosystème numérique. Le 10 mars 2021, un incendie a détruit entièrement l'un des quatre centres de données strasbourgeois de OVH, le numéro un français du "cloud computing". Cet incendie malheureux (voir la photo, p. 153) et ses conséquences lourdes doivent nous inciter à repenser le rapport du numérique à l'environnement et à sa propre durabilité. Les dégâts et les impacts de cet incendie montrent que le "cloud", le « nuage », n'est pas si éthéré que cela. Bien au contraire. Lorsque le centre de données brule, c'est bien de la matière qui brule. Nos données sont hébergées et traitées dans des usines, même si leur réalité physique, virtualisée par les discours marketing et médiatiques, est devenue de moins en moins perceptible pour l'utilisateur final. |
| Keywords: | développement durable, environnement, industrie numérique, pollution, pollution numérique |
| Date: | 2024–02–29 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04712797 |
| By: | Luca Cattani (Gran Sasso Science Institute); Giulio Pedrini (Kore University of Enna); Dorel Manitiu (Alma Laurea Consortium) |
| Abstract: | This research examines the changing landscape of academic curricula, with a specific focus on the integration of sustainable development topics into university programs. As the provision of “green skills†and the creation of “green jobs†gain momentum in the sustainability debate at the European and international levels, we aim to analyze unequal labor market (LM) outcomes among graduates resulting from the expansion of green curricula. To address the current gap in research, we use data from the AlmaLaurea Interuniversity Consortium, the Italian Ministry of University and Research, and the Italian Labour Force Survey, conducting a panel fixed effects analysis to evaluate the impact of environmentally focused programs on various graduates' LM outcomes. Our findings shed light on the role of sustainability-oriented higher education in shaping local labor market outcomes and, consequently, inequality among graduates. Our research contributes to the broader discourse on unequal graduate outcomes by offering insights into the consequences of incorporating environmental sustainability into higher education programs. By focusing on the Italian context, we provide new evidence on the potential unintended social consequences of sustainability-oriented higher education policies in the context of a just transition. |
| Keywords: | sustainability, higher education graduates’ employability, local labour markets |
| JEL: | O30 J24 R12 |
| Date: | 2024–05 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp55 |
| By: | Drigo, Alessandra |
| Abstract: | This study addresses the presence of an environmental justice issue along the dimensions of income and ethnicity in the urban context of Bologna, Italy. Among other Italian cities, Bologna has historically had a left-leaning political tendency and has made considerable substantial efforts to address social issues extensively. This makes it a useful cross-section dataset links gridded PM2.5 concentration data at 0.01°x0.01° resolution with census demographic characteristics and income per capita information for the year 2011. This study presents two main findings. i) It confirms the existence of an environmental justice gap, which affects vulnerable segments of the population along both income and ethnicity dimensions. A 1% increase in income per capita is associated with a 0.09% decrease in PM2.5 levels (a rise of 1 standard deviation of income per capita in the census corresponds to a reduction of -0.53 mg/m³ in PM2.5); whereas a 1% increase in the share of non-white individuals living in the census tract leads to a 0.13% increase in PM2.5 levels (+3.92 mg/m³ increase associated with a rise of 1 standard deviation in the proportion of non-whites in the census). ii) There is currently no evidence to suggest that exposure disparities for nonwhite individuals are changing depending on income level, whether it is lower or higher. Residence in lower/higher income areas of the city does not significantly exacerbate/alleviate these disparities for non-white communities. Overall, these results highlight the widespread occurrence of environmental injustice across various geographical and political settings, including those that have historically prioritized social concerns. |
| Keywords: | Climate Change, Sustainability |
| Date: | 2024–10–23 |
| URL: | https://d.repec.org/n?u=RePEc:ags:feemwp:347666 |
| By: | Jonathan Colmer; Eleanor Krause; Eva Lyubich; John Voorheis |
| Abstract: | We examine the labor market impacts of the U.S. coal industry’s decline using comprehensive administrative data on workers from 2005-2021. Coal workers most exposed to the industry’s contraction experienced substantial earnings losses, equivalent to 1.6 years of predecline wages. These losses stem from both reduced employment duration (0.37 fewer years employed) and lower annual earnings (17 percent decline) between 2012-2019, relative to similar workers less exposed to coal’s decline. Earnings reductions primarly occur when workers remain in local labor markets but are not employed in mining. While coal workers do not exhibit lower geographic mobility, relocation does not significantly mitigate their earnings losses. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:cen:wpaper:24-53 |