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on Energy Economics |
| By: | Michael A Mehling; Geoffroy Dolphin; Robert A Ritz |
| Keywords: | CBAM, carbon pricing, carbon leakage, environment-trade nexus, European Union |
| JEL: | F42 H23 Q58 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:enp:wpaper:eprg2416 |
| By: | Podrecca, Matteo (University of Bergamo); Culot, Giovanna (University of Udine); Tavassoli, Sam (Deakin University); Orzes, Guido (Free University of Bozen-Bolzano) |
| Abstract: | This study analyzes the current state of artificial intelligence (AI) technologies for addressing and mitigating climate change in the manufacturing sector and provides an outlook on future developments. The research is grounded in the concept of general-purpose technologies (GPTs), motivated by a still limited understanding of innovation patterns for this application context. To this end, we focus on global patenting activity between 2011 and 2023 (5, 919 granted patents classified for “mitigation or adaptation against climate change” in the “production or processing of goods”). We examined time trends, applicant characteristics, and underlying technologies. A topic modeling analysis was performed to identify emerging themes from the unstructured textual data of the patent abstracts. This allowed the identification of six AI application domains. For each of them, we built a network analysis and ran growth trend and forecasting models. Our results show that patenting activities are mostly oriented toward improving the efficiency and reliability of manufacturing processes in five out of six identified domains (“predictive analytics”, “material sorting”, “defect detection”, “advanced robotics”, and “scheduling”). Instead, AI within the “resource optimization” domain relates to energy management, showing an interplay with other climate-related technologies. Our results also highlight interdependent innovations peculiar to each domain around core AI technologies. Forecasts show that the more specific technologies are within domains, the longer it will take for them to mature. From a practical standpoint, the study sheds light on the role of AI within the broader cleantech innovation landscape and urges policymakers to consider synergies. Managers can find information to define technology portfolios and alliances considering technological co-evolution. |
| Keywords: | artificial intelligence; AI; climate change; sustainability; patent analysis; technology foresight |
| JEL: | O14 O31 O32 O33 O34 |
| Date: | 2024–10–21 |
| URL: | https://d.repec.org/n?u=RePEc:hhs:lucirc:2024_012 |
| By: | Heid, Pascal; Remmy, Kevin; Reynaert, Mathias |
| Abstract: | The transition to electric vehicles (EVs) shifts the complementary market for passenger transport from oil to electricity. We develop and estimate a joint equilibrium model of the German electricity and automobile markets, emphasizing the timing of EV charging, as electricity generation costs and pollution vary intraday. Our results show that under Germany’s current electricity pricing scheme, EVs create a significant pecuniary externality: electricity expenses rise by €0.66 for every €1 spent charging. Exposing charging to wholesale price variation eliminates the pecuniary externality, makes EVs greener, and increases adoption—a triple dividend. |
| Keywords: | Electric vehicles; electricity markets; charging; complementary markets |
| JEL: | L5 L6 L9 Q4 Q5 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:129899 |
| By: | Juliana Oliveira-Cunha; Bruno Serra-Lorenzo; Anna Valero |
| Abstract: | Are businesses in the UK embracing artificial intelligence? And what are they doing to meet net-zero targets? Juliana Oliveira-Cunha, Bruno Serra-Lorenzo and Anna Valero report on how employers believe the two big upheavals of AI and climate change will affect jobs, profits and resilience. |
| Keywords: | covid-19, productivity, uk economy |
| Date: | 2024–10–18 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepcnp:686 |
| By: | Kemper, Marina; Styles, Alexandra; Mundt, Juliane; Werner, Robert; Kreis, Philippa |
| Abstract: | Hamburg Institut has been providing research and consulting services in the fields of climate change mitigation and energy system transformation since 2012 with an interdisciplinary team of experts. Both in our daily research and project work with our customers and in our participation in national, European and international standardisation processes, we keep addressing questions related to certification systems and carbon accounting. A much-discussed topic is the gap between the market-based and the location-based approach to handling emissions from electricity purchases. In their current design and practical application, the parallel use of the two approaches represents an obstacle to comparability and, consequently, to the credibility of carbon accounting as a whole. With this paper, we would like to shed more light on the current issues - but above all, we would like to encourage discussion on possible solutions and emphasise the need to harmonise the existing approaches to electricity accounting. |
| Abstract: | Sowohl in der täglichen Forschungs- und Projektarbeit mit unseren Kunden als auch bei unserem Mitwirken in der nationalen, europäischen und internationalen Normung (z.B. DIN, CEN-CENELEC, ISO) befassen wir uns immer wieder mit Fragestellungen rund um die Nachweisführung und Klimabilanzierung. Ein viel diskutiertes Thema ist dabei das Spannungsfeld zwischen dem markt- und dem ortsbasierten Ansatz bei der Klimabilanzierung von Strom. Deren parallele Anwendung stellt in der derzeitigen Ausgestaltung und praktischen Handhabung ein Hemmnis für die Vergleichbarkeit und in der Folge für die Glaubwürdigkeit der Klimabilanzierung insgesamt dar. Mit diesem Discussion Paper möchten wir die aktuelle Problematik näher beleuchten - vor allem aber eine Diskussion über mögliche Lösungsansätze anregen sowie ein Ausrufezeichen hinter die Notwendigkeit setzen, die Harmonisierung der bestehenden Ansätze zur Strombilanzierung in den Fokus zu rücken. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:hirdps:304459 |
| By: | George Yunxiong Li (Fudan University); Simona Iammarino (University of Cagliari) |
| Abstract: | Many critical raw materials (CRMs) – including rare metals and earth elements – are essential components in renewable energy products, and they work as an irreplaceable material basis for related technological innovation. However, global CRM supply chains are subject to significant risks, posing threats to the stability of the renewable energy industry. To address the challenges, a growing emphasis in both academic and policy circles is directed to de-risking supply chains through diversification and production reshoring. In this study, we investigate the relevance of domestic CRM production as a strategic measure to hedge against global supply shocks, providing competitive advantages for local renewable energy development and innovation. We explore this issue by focusing on two core renewable energy sectors: Wind and Solar energy. Analysing data from a panel of 128 countries spanning from 2007 to 2016, we examine the impact of domestic CRM supply capabilities on the competitiveness of the RE sectors and technological innovation, while controlling for various influencing factors. Our findings show that a stable CRM supply through domestic production significantly supports downstream RE product export and patent output, protecting local RE development from global material supply shocks. Using the case of renewable energy sector, this paper introduces the concept of "material-based technological regime" and underscores the critical importance of supply chain stability for key materials in bolstering national technological advantages. It provides valuable perspectives for both businesses and policymakers. |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:ahy:wpaper:wp48 |
| By: | Andres, Pia |
| Abstract: | Low cost solar energy is key to enabling the transition away from fossil fuels. Despite this, the European Union followed the United States’ example in imposing anti-dumping tariffs on solar panel imports from China in 2013, arguing that Chinese panels were unfairly subsidised and harmed its domestic industry. This paper examines the effects of Chinese import competition on firm-level innovation in solar photovoltaic technology by European firms using a sample of 10, 137 firms in 15 EU countries over the period 1999–2020. I show that firms which were exposed to higher import competition innovated more if they had a relatively small existing stock of innovation, but less if their historical knowledge stock fell within the top 10th percentile of firms in the sample. This suggests that newer firms were more able to respond to increased competition by innovating, while firms with a large historical stock of innovation may have been locked into old technological paradigms. As firms with a smaller knowledge stock tended to innovate more overall, trade with China appears to have been beneficial in encouraging innovation among the most innovative firms. However, I also find evidence that import competition increased the probability of exit among firms in the sample. |
| JEL: | R14 J01 |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:ehl:lserod:125801 |
| By: | Farag, Markos (Faculty of Management, Economics and Social Sciences, University of Cologne); Ruhnau, Oliver (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Regulatory reforms by the European Commission have facilitated the integration of the European gas market, increasing interdependence in prices and associated risks across gas hubs. Recent external shocks, including the COVID-19 pandemic and the Russian invasion of Ukraine, have disrupted market interconnectedness, as evidenced in the literature. However, whether the nature of shock transmission — contemporaneous or delayed — changes during market instability, how quickly price and volatility connectedness recover afterward, and whether spot and futures prices are affected differently remain unclear. This paper analyzes the connectedness of natural gas hubs in Northwest Europe from 2020 to 2024 using the R2 decomposition connectedness method. Our findings show that contemporaneous spillovers dominate lagged ones, even during external shocks, indicating rapid market adjustments. Moreover, while market connectedness significantly decreased during major disruptions, it promptly returned to pre-crisis levels once these disruptions subsided. Regression results indicate a significant link between reduced market connectedness and pipeline congestion, particularly when combined with higher future price expectations. Futures markets showed higher connectedness than spot markets during tight conditions, suggesting alignment with broader expectations and reduced susceptibility to physical constraints. |
| Keywords: | European natural gas market; Dynamic linkages; R2 decomposition; volatility |
| JEL: | C11 C32 F14 L71 Q31 Q43 |
| Date: | 2024–10–24 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2024_006 |
| By: | Christina Anderl; Guglielmo Maria Caporale |
| Abstract: | This paper aims to assess the role of expectations as a determinant of the real price of natural gas. To measure expectations-driven speculative demand three approaches are followed, which are based respectively on using natural gas inventories consistently with the theory of storage (Kilian and Murphy, 2014), the futures spread (Valenti, 2022), and functional shocks defined as shifts in the entire risk-adjusted natural gas futures term structure (Inoue and Rossi, 2021). Three specifications of a structural VAR (SVAR) model are then estimated based on each of those approaches in turn. The results suggest that expectations, especially when measured as functional shocks, lead to strong and persistent increases in the real price of natural gas. A shock decomposition exercise shows that the price of natural gas responds primarily to changes in the curvature of its futures term structure, which indicates that medium-term expectations are the main driver of permanent increases in the spot price of natural gas. Further, the functional natural gas price shocks seem to account for around half of the variation in the real price of natural gas. |
| Keywords: | natural gas price, expectations, speculation, inventories, functional shocks, structural VAR (SVAR) |
| JEL: | D84 G15 Q41 Q43 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11341 |
| By: | Mounia Boucetta |
| Abstract: | Le marché de l’hydrogène vert est appelé à connaitre de grands bouleversements dans les années à venir avec l’émergence de nouveaux acteurs de la transition énergétique. Néanmoins, ce marché est encore tributaire du développement de la demande, de la baisse des coûts de production, de transport et de stockage, du développement d’une chaîne logistique très compétitive et de la mise en place de cadre juridique et règlementaire approprié. Malgré les différents défis que connait ce secteur, plusieurs pays se positionnent déjà entre importateurs et exportateurs pour tirer profit de cette nouvelle dynamique dont les conséquences sont importantes en termes d’investissement aussi bien industriel, logistique que technologique, qu’en termes d’influence diplomatique et géopolitique. Le continent africain dispose de grands atouts grâce à la disponibilité de ressources renouvelables à des prix compétitifs et grâce à sa proximité du marché européen qui mise sur l’hydrogène pour remplacer les combustibles fossiles dans des secteurs difficiles à décarboner tels que les industries d’acier, chimique et de transport. Mais pour transformer ces atouts en de réelles opportunités viables et créatrices de richesses, les pays africains qui visent le marché de l’export devront opter pour des choix appropriés, en tant qu’acteurs de cette transformation, en termes de business modèle, de technologie et d’intégration régionale. |
| Date: | 2023–01 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_01-23 |
| 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:pbcoen:pb_09-24 |
| By: | Kreutz, Julian (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)); Kopp, Jan Hendrik (Energiewirtschaftliches Institut an der Universitaet zu Koeln (EWI)) |
| Abstract: | Climate-neutral hydrogen is set to play a crucial role in decarbonizing Europe by 2050. Yet, assumptions on hydrogen imports vary widely across existing studies — ranging from fully flexible to fixed import volumes — often neglecting the modalities of future hydrogen trade such as long-term contracts (LTC). This paper addresses this gap by investigating the implications of Take-or-Pay (TOP) rates in hydrogen LTCs on a decarbonized European energy system. We employ a numerical model that optimizes generation capacity, storage and infrastructure investment, and dispatch decisions for the European power and hydrogen sector in 2050, explicitly incorporating TOP obligations in hydrogen LTCs. Our findings show that varying TOP-rates induce significant shifts in cost-minimal infrastructure requirements of the energy system.These shifts underscore the necessity to account for the degree of import flexibility in planning assessments for future energy systems relying on hydrogen imports. Additionally, we show that reduced import flexibility imposed by high TOP rates is balanced predominantly by increased hydrogen storage and withdrawal capacity while import capacity decreases. By simulating dispatch decisions for 35 weather years for the energy systems planned with representative weather, we find that systems planned with high TOP-rates exhibit a lower reliability when weather characteristics during operation differ from the planning stage. Yet, the modalities of future hydrogen trade, for example via long-term contracts (LTC), are often neglected and existing research assumes imports to be completely flexible. |
| Keywords: | Energy System Modeling; Hydrogen Infrastructure; Hydrogen Storage; Hydrogen Long-Term-Contracts; Hydrogen and Electricity Markets |
| JEL: | C61 F10 Q27 Q40 Q41 Q48 |
| Date: | 2024–10–29 |
| URL: | https://d.repec.org/n?u=RePEc:ris:ewikln:2024_007 |
| By: | Martijn Dröes; Yasmine Van der Straten |
| Abstract: | This paper shows that lower-income households are less likely to do energy efficiency enhancing home improvements. At the same time, higher-income households sort themselves into homes that are already more energy efficient to begin with. Over a 10-year horizon, the combined effect of energy savings accumulate to 12% of median net wealth, with ex ante sorting explaining 65% of this effect. If all households, regardless of income, had the same high energy-efficient home and the same rate of home improvement, the Gini coefficient on net wealth would be 1.7 percent lower over a 10-year period. These results show that households become green to varying degrees and that this has a fundamental impact on the accumulation and distribution of wealth. |
| Keywords: | Energy Efficiency; home improvements; Wealth |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-145 |
| By: | Nikolas Müller |
| Abstract: | Germany's building sector, crucial for climate protection, exhibits a considerable energy-saving potential. However, this potential remains largely untapped due to the stagnant renovation rate of about 1%, leading to significant delays in energy retrofitting and failure in meeting energy and greenhouse gas reduction targets.This study examines alternative Zero Emission Building (ZEB) standards in terms of cost-effectiveness, macroeconomic efficiency, and their potential in reducing greenhouse gases. The focus is on GdW's real estate portfolio, which comprises 30% of Germany's rental apartments, mostly occupied by low to middle-income households. This demographic accentuates the social impact of energy and climate policies.The findings highlight the inefficacy of current renovation strategies, which blend economic and climate objectives, in realizing the sector's potential. These strategies lead to suboptimal energy savings and reduced affordability for tenants. The research proposes a shift to a ZEB standard defined as low-temperature capable, offering a more cost-effective and feasible alternative to the current 'Efficiency House 55' standard, potentially boosting the achievement of climate goals.A considerable investment discrepancy is noted, with the 'Efficiency House 55' standard necessitating significantly higher funds, raising concerns about the financial feasibility, particularly for socially focused housing corporations.The paper advocates for a balanced approach, merging sufficient energy efficiency with the expansion of renewable energies. This strategy is presented as economically viable and socially fairer, urging a paradigm shift in Germany's building energy and climate policy. The recommended approach better aligns with the EU's 'energy efficiency first' principle and promises greater sustainability and economic soundness. |
| Keywords: | Energy efficiency first; Energy Performance of Buildings Directive (EPBD); Social impact of energy and climate policies; Zero Emission Building (ZEB) |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-137 |
| By: | Joseph Ikechukwu Uduji (University of Nigeria, Nsukka, Nigeria) |
| Abstract: | There have been increasing demands on multinational oil companies (MOCs) to provide community development programmes and security to their host communities in Nigeria. This is mainly because developmental projects and security are lacking in most of these communities and most of the time they are not provided by government. Thus, we set out to examine the impact of MOCs’ Corporate Social Responsibility (CSR) model on cutting the main drivers cum prompters of herder-farmer violence in the Niger Delta expanse of Nigeria. Results from the use of both propensity score matching and logit model indicate that, though, a very skimpy part of the CSR intervention are specifically aimed at alleviating herder-farmer conflict, the CSR has made momentous impact in the drops in land deprivation, social disparities, pressure over land as well as bettering people’s lives in the region. The finding suggests that MOCs are well positioned to tackle the drivers and triggers of farmer-herder violence, when investment in cluster development boards (CDBs) is designed to improve land management infrastructure, train local leaders in dispute resolution techniques, and prioritize trust between communities and the security forces. This implies that business has an obligation to help in solving problems of public concern. |
| Keywords: | Herder-farmer conflict, corporate social responsibility, multinational oil companies, sub-Saharan Africa |
| Date: | 2024–01 |
| URL: | https://d.repec.org/n?u=RePEc:exs:wpaper:24/024 |
| By: | Jonathan Colmer; Ralf Martin; Mirabelle Muûls; Ulrich J. Wagner |
| Abstract: | Ever since the European Union created its market-based carbon policy, governments and businesses have been keen to assess its impact. Jonathan Colmer, Ralf Martin, Mirabelle Muûls and Ulrich Wagner explain why analysing the effectiveness of such policies can be complex - and why hard proof that carbon markets can achieve what they set out to do is scarce. |
| Keywords: | carbon emissions, centre for climate finance and investment, clean energy, climate change, climate finance, coal, economics, environment, finance, green finance |
| Date: | 2024–10–18 |
| URL: | https://d.repec.org/n?u=RePEc:cep:cepcnp:692 |
| By: | Straubinger, Anna |
| Abstract: | Urban Air Mobility (UAM) beschreibt den kommerziellen Personentransport in der Luft, in oder zwischen Städten und ländlichen Gebieten, mittels eVTOL-Vehikeln (electric vertical take-off and landing vehicles). UAM wird ein großes Potenzial prognostiziert, weil die eVTOL-Vehikel effizienter, leiser und günstiger als herkömmliche Helikopter sein sollen. Unsere Studien zeigen, dass aufgrund benötigter Start- und Landeinfrastruktur Reisezeiten oft nicht wesentlich kürzer sein werden, da zusätzliche Anfahrts- und Abgangszeiten hinzukommen. Kurz- und mittelfristig begrenzen hohe Kosten und resultierende hohe Ticketpreise zusätzlich das Marktpotenzial. Wegen des hohen Preises wird UAM voraussichtlich größtenteils von Haushalten mit hohen Einkommen genutzt werden. Haushalte mit geringerem Einkommen werden das Angebot kaum nutzen und überwiegend die negative Externalitäten wie Lärm und visuelle Beeinträchtigungen wahrnehmen. Obwohl die eVTOL-Vehikel elektrisch betrieben werden sollen und daher im Flug keine Emissionen verursachen, ist ihre Nutzung gegenüber bodengebunden Verkehrsmitteln, besonders im Vergleich zu Elektroautos, weniger energieeffizient. Potenzial bietet UAM bei Notfalleinsätzen sowie zur Anbindung abgelegener Regionen. |
| Keywords: | Öffentlicher Nahverkehr, Luftfahrzeug, Soziale Folgen, Deutschland |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:zewpbs:303499 |
| By: | Thielges, Sonja |
| Abstract: | The United States will play a crucial role in global climate protection in what has been called the "super election year" of 2024. After three-and-a-half years of having scored huge successes in climate protection, President Joe Biden could be succeeded by Donald Trump in January 2025, according to opinion polls. Trump used his first Presidency (2017-2021) to largely reverse the climate protection measures of the previous administration; and he intends to take the same approach if he wins in November. Conservative think tanks have provided him with a detailed blueprint for doing so with the "Mandate for Leadership: The Conservative Promise". Trump's return to the White House would deal a fatal blow to climate protection. Many of the Biden administration's climate policy measures could be scrapped by a second Trump administration. While the future of US climate policy depends largely on the results of the elections to the White House and Congress, an important factor will also be the progress that has been made in the individual US states. |
| Keywords: | Joe Biden, Donald Trump, Kamala Harris, US climate policy, Priority Climate Action Plan (PCAP), Conservative Climate Caucus, Paris Agreement, decarbonization, Environmental Protection Agency (EPA), carbon capture and storage (CCS), liquefied natural gas (LNG), fossil fuels, green technologies, renewables |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:swpcom:304324 |
| By: | Kola Akinsomi; Oguntona Olusegun; Andersson Magnus; Lundin Andrea |
| Abstract: | Several works have investigated sustainable communities globally. Turner-Skoff and Nicole Cavender (2019) examine the role of trees and their role for people and the planet. Their study shows that trees are essential for healthy communities and people, and they benefit and can help cities meet 15 of the 17 United Nations sustainable development goals. Schweizer-Ries (2008) examines the role of energy sustainability and the environmental and psychological aspects of the change in energy supply and demand. The paper examines energy-sustainable communities and examines a case study as an example of a community in Germany. Duxbury and Jeannotte (2011) discuss the role of culture and sustainable communities and its benefits to people who live in these communities.Therefore, this literature review attempts to fill the gap in the literature on sustainable communities, which are still quite unpopular globally, by examining the best practices in sustainable communities by examining past literature, exploring and having a clearer understanding of how it impacts real estate value. |
| Keywords: | Global climate; real estate; Sustainable communities; Valuation |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-223 |
| By: | Dirk Broeders; Daniel Dimitrov; Niek Verhoeven |
| Abstract: | Climate-linked bonds, issued by governments and supranational organizations, play a crucial role in achieving a net-zero economy. These bonds adjust their payoffs based on climate variables such as temperature and greenhouse gas levels, offering investors a hedge against long-term climate risks. They also signal government commitment to climate action and incentivize stronger policies. The price differential between climate-linked and nominal bonds reflects market expectations of climate risks. This paper introduces a model of climate hedging and estimates that approximately three percent of government debt in major economies could be converted into climate-linked bonds. |
| Keywords: | climate-linked bonds; climate risk; contingent claims; pricing green finance |
| JEL: | E58 G12 G13 Q54 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:dnb:dnbwpp:817 |
| By: | Christian de Boissieu |
| Abstract: | The energy and ecological transition (EET) is inevitable, desirable, and now accepted worldwide. But how this transition will be financed remains highly uncertain. This Policy Paper analyzes the financing needs and reviews the different possible financial channels. Some avenues have already been launched, and procedures and instruments are being put in place, but all of this remains insufficient. Many solutions will have to be combined, and these will require financial innovations, the broader application of environmental, social, and governance (ESG) criteria, an adaptation of certain banking and financial regulations, and more international cooperation. This paper proposes several recommendations to facilitate the financing of EET. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_12-23 |
| By: | Markus Doepfert; Soner Candas; Hermann Kraus; Peter Tzscheutschler; Thomas Hamacher |
| Abstract: | The shift towards decentralized and renewable energy sources has introduced significant challenges to traditional power systems, necessitating innovative market designs. Local energy markets present a viable solution for integrating distributed energy resources such as photovoltaic systems, electric vehicles, and heat pumps within various grid topologies. This study investigates the techno-economic benefits of local energy markets compared to conventional market designs, focusing on their impact on average energy prices and operational peak power, using a self-developed agent-based energy system simulation tool. Through comprehensive simulations across the countryside, rural, suburban, and urban grid topologies with varying penetration levels of the distributed energy resources, totaling 400 simulation setups, we demonstrate that local energy markets can enhance economic efficiency and grid stability with 99 % of the scenarios boasting lower average energy prices and 80 % lower operational peak power levels. Our findings suggest that local energy markets can play a role in the future energy system, especially in areas with high shares of PV and HP, provided that additional infrastructure, management costs, and bureaucratic complexity are kept to a minimum. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.13330 |
| By: | Asuamah Yeboah, Samuel |
| Abstract: | This review examines the pivotal role of government incentives-tax breaks, subsidies, and green bonds- in advancing sustainable construction practices within developing countries. Tax incentives encourage investment in energy-efficient technologies, stimulate innovation, and enhance market competitiveness for eco-friendly buildings. Subsidies provide crucial financial support, making sustainable building materials and practices accessible, particularly in affordable housing initiatives and underserved regions. Green bonds facilitate capital for large-scale sustainable projects, fostering market confidence and scaling up green building technologies. Effective policy integration ensures alignment with national sustainability goals, supported by continuous monitoring and capacity building. This review explores how these incentives collectively promote sustainable development and resilience in the construction sector of developing economies. |
| Keywords: | Tax breaks, subsidies, green bonds, sustainable construction practices, energy efficiency, innovation, affordable housing, economic development, policy integration, capacity building |
| JEL: | H23 O13 O18 Q56 Q58 |
| Date: | 2024–08–18 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122480 |
| By: | Malancha Chakrabarty; Karim El Aynaoui; Youssef El Jai; Badr Mandri; Manish K Shrivastava |
| Abstract: | This paper was originally published on t20brasil.org In a global context marked by unprecedented economic and environmental challenges, Africa stands at a crossroads. The rapid rise in public debt, coupled with the climate emergency, imposes a dual constraint on the continent's countries, severely limiting their ability to pursue sustainable development and mitigate the effects of climate change. This critical situation calls for innovative and effective solutions capable of transforming obstacles into opportunities for a more resilient and prosperous future. In the face of this reality, it is imperative to rethink traditional financing mechanisms and explore innovative approaches that promote both debt relief and climate action. In this context, Debt-for-Green Swaps are emerging as a promising strategy, offering a viable path to reduce financial vulnerability while accelerating investments in environmental sustainability. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbcoen:tf03_st_03 |
| By: | Laura Gabrielli; Aurora Greta Ruggeri; Massimiliano Scarpa |
| Abstract: | The energy performance of buildings has emerged as a critical factor in the real estate sector, intertwining environmental sustainability with market pricing. Therefore, this study aims to explore the relationship between a building's energy performance, as indicated by its energy class, and its market value. Leveraging a web-parsing automated procedure, the authors gathered approximately 200, 000 observations of properties currently listed for sale across Italy, capturing both asking prices and energy class specifications. Through the analysis of this extensive dataset, an Artificial Neural Network was trained to develop a predictive tool for estimating property market values based on various building characteristics, with particular emphasis on understanding the impact of energy class on market prices. In conclusion, this research opens the debate on the significance of energy class in evaluating the market value of buildings, especially within the context of the European Green Homes Directive. |
| Keywords: | Artificial Neural Network; Energy class; Market Value; Property Valuation |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-198 |
| By: | DORATI Chiara (European Commission - JRC); HORMIGOS FELIU Clara (European Commission - JRC); PERPIÑA CASTILLO Carolina (European Commission - JRC); QUARANTA Emanuele (European Commission - JRC); TAYLOR Nigel (European Commission - JRC); KAKOULAKI Georgia (European Commission - JRC); UIHLEIN Andreas (European Commission - JRC); AUTERI Davide (European Commission - JRC); DIJKSTRA Lewis (European Commission - JRC) |
| Abstract: | The green energy transition and its boost to the deployment of renewable energy can offer a unique opportunity for rural areas to benefit from their natural resources. The present brief summarise the findings of the previous science for policy report and provide a quantitative assessment of the technical potential of renewable energy sources in the EU’s rural areas, focusing on solar, wind and hydropower. It aims to provide relevant insights into how rural areas and communities can contribute to and benefit from the EU’s green energy transition, without undermining natural and key biodiversity areas, high-value natural farms and food production. The report shows that solar photovoltaic systems in rural areas generate 136TWh a year but have the potential to generate 60 times more (8600TWh/year). Rural areas produce 280TWh a year through onshore wind but have the potential to produce four times more (1200TWh/year). Hydropower production in rural areas yields 280TWh a year, but it could potentially be 25% higher (350TWh/year). The document also addresses the concept of energy communities, as an emerging framework intended to foster a just green transition and community engagement. |
| Date: | 2024–09 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc138095 |
| By: | Ajayi, Victor (Energy Policy Research Centre, University of Cambridge); Burlinson, Andrew (School of Economics and Sheffield Urban International Trade and Environmental Economic Group, University of Sheffield); Giulietti, Monica (Nottingham University Business School, University of Nottingham and UK Energy Research Centre); Waterson, Michael (CAGE research centre and Department of Economics, University of Warwick) |
| Abstract: | In April 2022, consumers in Great Britain (GB) witnessed a 54% increase in the energy price cap, as a result of Russia’s invasion of Ukraine on February 24th, which sent wholesale gas prices spiralling across Europe. We leverage high-frequency data collected by the Smart Energy Research Lab, a representative panel containing daily gas and electricity data for around 13, 000 households in Great Britain between January 2021 and December 2023 to investigate the implications. We exploit several datasets linked to the panel data which include time-varying and cross-sectional information. We rely on two price shocks: 1) in October 2021 a wave of energy retail suppliers leaving the industry. At this time over two million consumers on fixed contracts were forced to join a new supplier and pay a variable tariff, and 2) these consumers were exposed to a second price shock caused by the Ukraine-Russia conflict which fed through April 2022’s energy price cap. Exploiting this pseudo-natural experiment, we use a difference-in-difference framework to estimate average treatment effects on this group of consumers and find that they would have consumed an additional 10 percentage points more electricity and 16 percentage points more gas had their prices remained fixed. These estimates are robust to a battery of robustness checks and point towards a significant loss in welfare for consumers on variable tariffs in the early stages of the energy price crisis. |
| Keywords: | Difference-in-differences, energy consumption, energy crisis JEL Classification: L94, E31, D12, I19 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:cge:wacage:727 |
| By: | Rabi Mohtar |
| Abstract: | It is estimated that $1 trillion to $6 trillion per year (up to 2050) needs to be invested globally if the world is to stay below the 2°C global warming ceiling of the Paris Agreement and to meet its adaptation goals. Currently, investments stand at about $630 billion per year, way below the original target. And although great efforts have been made in the climate-finance area, more than 70% of the funds deployed have gone to one sector, renewable energy, followed by the transportation sector. The agriculture sector has been severely underfunded, even though it produces 20% of global greenhouse gas emissions. This leaves the most vulnerable communities at risk as the effects of climate change are already impacting this sector intensely. In this policy brief, four principles are proposed as a foundation when deploying funds into climate-change mitigation and adaptation projects: equity, creativity, impact, and transparency. Climate finance has an enormous potential to make bigger impacts when the right principles are applied. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:pbagri:pb_20_23 |
| By: | Patrick Lehnert; Harald Pfeifer |
| Abstract: | This paper analyzes the impact of environmental awareness on the occupational choices of adolescents. To do so, we exploit the apprenticeship system in Switzerland, where about two-thirds of adolescents choose an apprenticeship in their preferred occupation at around age 15. We consider two dimensions of environmental awareness as potential drivers of their occupational choice. First, we consider time-persistent regional social norms, which we proxy by regional differences in popular votes on environmental issues. Second, we investigate short-term shocks in environmental awareness, which we proxy by the occurrence of Fridays for Future strikes in different locations at different points in time. To measure whether adolescents choose occupations that have the potential to serve environmental protection, we estimate an occupational greenness score based on Swiss job-ad texts as data. Combining this occupational greenness score with detailed process-generated data on adolescents' applications from Yousty, Switzerland’s largest online job board for apprenticeship positions, we find that environmental awareness is positively related to the greenness of adolescents' occupational choices. However, this finding applies only to short-term shocks in environmental awareness and not to time-persistent pro-environmental norms. We interpret this result as evidence for a social-movement effect on norms and values that significantly alter adolescents' occupational choices. |
| Keywords: | Vocational education and training, apprenticeships, occupational choice, environmental awareness, climate strikes, social norms |
| JEL: | D91 J13 J24 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:iso:educat:0231 |
| By: | Matt Hopkins (Academic-Industry Research Network); William Lazonick (Academic-Industry Research Network) |
| Abstract: | In this paper, we assess the implications of Elon Musk's strategic control over Tesla, the pioneering company that has become central to the electric-vehicle transition. We document how, as Tesla's CEO for 16 years, Musk has exercised strategic control to direct the transformation of the company from an uncertain startup to a global leader. Now that Tesla is profitable corporate predators (aka hedge-fund activists) may challenge Musk's strategic control - a possibility of which the CEO is well aware. To retain his control over Tesla as a publicly listed company, Musk depends on holding a sufficient proportion of Tesla's shares outstanding to possess the voting power to fend off predatory value extractors. In addition to accumulating Tesla shares by investing $291.2 million at early stages of the company's evolution, Musk has relied upon massive stock-option grants from the Tesla board, under the guise of "compensation", in 2009, 2012, and 2018, to boost his shareholding and, with it, his voting power. Hence the Delaware Court of Chancery's decision in January 2024 to rescind Musk's 2018 stock-option package - by far the largest ever granted to a corporate executive - poses a threat to Musk's strategic control at Tesla. As the "Technoking" of Tesla strategizes to maintain his control over the company's decision-making, anyone concerned with the role that Tesla will play in the evolving EV transition should be asking how CEO Musk might use, or abuse, his powerful position. |
| Keywords: | Elon Musk, Tesla, electric vehicles, strategic control, stock options, voting power, resource allocation, corporate governance |
| JEL: | D2 D31 G3 J33 L2 L53 L62 M1 N8 O16 O32 Q55 |
| Date: | 2024–09–07 |
| URL: | https://d.repec.org/n?u=RePEc:thk:wpaper:inetwp225 |
| By: | Hamza Mjahed |
| Abstract: | The North Sea has been an important energy hub for many European countries for centuries. It is home to many natural resources, from oil and natural gas, to wind and wave energy, making it a powerhouse of energy production. In recent decades, the North Sea has seen significant investment in energy infrastructure and innovation, allowing many of these resources to be harnessed and used to supply energy to much of Europe. Furthermore, the North Sea has become more important for European energy security in the context of the volatility in global energy markets and European efforts to decouple from Russian fossil fuels. The North Sea is thus bound to play a vital role in the future of European energy security, with a large number of projects set to come online in the coming years, providing a significant boost to energy production. |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_09_23 |
| By: | Jésus Fernández-Villaverde; Kenneth T. Gillingham; Simon Scheidegger; Jesús Fernández-Villaverde; Kenneth Gillingham |
| Abstract: | There is a rapidly advancing literature on the macroeconomics of climate change. This review focuses on developments in the construction and solution of structural integrated assessment models (IAMs), highlighting the marriage of state-of-the-art natural science with general equilibrium theory. We discuss challenges in solving dynamic stochastic IAMs with sharp nonlinearities, multiple regions, and multiple sources of risk. Key innovations in deep learning and other machine learning approaches overcome many computational challenges and enhance the accuracy and relevance of policy findings. We conclude with an overview of recent applications of IAMs and key policy insights. |
| Keywords: | climate change, integrated assessment model, dynamic stochastic general equilibrium |
| JEL: | C61 E27 Q50 Q51 Q54 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11346 |
| By: | Thiemo Fetzer; Christina Palmou; Jakob Schneebacher |
| Abstract: | We study how businesses adjust to significant rises in energy costs. This matters for both the current energy crisis and the longer-term shift towards Net Zero. Using firm-level real-time survey and administrative data backed by a pre-registered analysis plan, we examine how firms respond to the energy price shock triggered by Russia’s invasion of Ukraine along output, price, input, process and survival margins. We find that, on average, firms pass on some cost increases, build up cash reserves, and face higher debt, but do not yet see layoffs or bankruptcies. However, effects are highly heterogeneous by size and industry: for instance, small firms tend to increase cash reserves and prices, while large firms invest more in capital. We estimate separate elasticities for many small industry cells and subsequently use k-means clustering techniques on the estimated effects to identify high-dimensional firm-adaptation archetypes. These estimates can help tailor firm support in the energy transition both in the short and the long term. More generally, the machinery developed in this paper enables policymakers to evaluate and adjust economic policy in near-real time. |
| Keywords: | energy price shock, firm dynamics, climate change, high-dimensional analysis |
| JEL: | D22 D24 H23 L11 O30 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11367 |
| By: | Cynthia Aubert; Charles Séguin; Andrée De Serres |
| Abstract: | The transportation industry is a vector of important change to meet the challenges of sustainability and resilience of our societies. It is the second largest GHG emitter in Canada, accounting for nearly 28% of the country's total emissions. Among these emissions, 57% were attributable to the travel of Canadians in 2021, of which 30% are linked solely to the use of private cars. To limit their circulation, the development of public transit infrastructure is an effective way. However, such infrastructure has indirect effects on GHG emissions due to its interdependence with the urban planning and its socio-economic characteristics. This research paper aims to evaluate the impact of the commissioning of a public transit infrastructure on the evolution of a city's GHG emissions over time. The case of the Vancouver SkyTrain's Canada Line was analyzed. The methodology used to carry out this study is a synthetic control. This is one of the contributions of this research to the existing literature, whose studies generally only assess the direct effects of a transportation infrastructure from the emissions avoided by the modal shift of passengers. The data analyzed was collected from the open databases of Canadian cities and Statistics Canada. These include GHG emissions in CO2 equivalent, GDP, gasoline and fuel tax revenues, construction investments, number of inhabitants and their transportation habits in the cities in the control group. The results show that the introduction of the Canada Line resulted in an increase of approximately 8.6% in Vancouver's GHG emissions in 2011. This increase could be explained by the redevelopment of neighborhoods around infrastructure stations to the detriment of their gentrification, accentuating urban sprawl. For an investment in a sustainable means of transport to effectively reduce GHG emissions in the long term, more emphasis should be placed on the interactions between transport, urban development (to be built or renovated) and the socio-economic characteristics of neighborhoods. Studies with more spatial precision would provide a better understanding of the interweaving of social, economic, and environmental changes generated by transportation infrastructure and affecting a city's GHG emissions. |
| Keywords: | Greenhouse gas emissions; Public transportation infrastructure; Sustainable city; Sustainable mobility |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-150 |
| By: | Andreas Lichtenberger (The Vienna Institute for International Economic Studies, wiiw); Robert Stehrer (The Vienna Institute for International Economic Studies, wiiw) |
| Abstract: | This study investigates the comparative economic resilience of low carbon intensity (LCI) versus high carbon intensity (HCI) industries of the Austrian economy, examining the impact of energy price shocks on real gross value added (GVA) and employment within both LCI and HCI industries. To illustrate these dynamics, we conducted a vector autoregression (VAR) analysis to simulate the effects of various energy price shocks on key economic indicators, comparable to the price surge experienced at the start of the war in Ukraine. The results show that fossil energy price dynamics can lead to significant economic damage, such as a loss in the dimension of 6.6% in real GVA in the HCI sector one year after a gas price shock (reflecting a possible loss of EUR 10 billion) or a loss in the range of 3-4% of jobs in the HCI sector for individual years after the shock (i.e., about job 50-70 thousand jobs in certain years). We argue that LCI industries demonstrate greater resilience in the light of fossil energy price shocks, which appear to destabilise HCI industries to a higher degree at least in the short run, not accounting for other factors and considering that everything else is kept constant. In conclusion, this study underscores the necessity for policy makers to prioritise the transition to low-carbon industries. |
| Keywords: | green transition; energy price shocks; I/O-sector-analysis; VAR; GDP; GVA; employment; climate policy |
| JEL: | Q41 Q43 C22 D57 E61 O44 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:wii:pnotes:pn:83 |
| By: | Mateus Rodrigues; Daniel Da Mata; Vitor Possebom |
| Abstract: | We study the effects of a free-fare transport policy implemented by Brazilian localities on employment and greenhouse gas emissions. Using a staggered difference-in-differences approach, we find that fare-free transit increases employment by 3.2% and reduces emissions by 4.1%, indicating that transport policies can decouple economic activity from environmental damage. Our results are driven by workers transitioning from higher-emission to lower-emission sectors instead of being driven by a decline in private transportation use. Cost-benefit analyses suggest that the costly policy only presents net benefits after considering the tax inflows of the increased economic activity and the benefits of reduced carbon emissions. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.06037 |
| By: | PICKARD GARCIA Nicolas (European Commission - JRC); GOURDON Thomas (European Commission - JRC); SEIGNEUR Isabelle (European Commission - JRC); MARTINY Alice; ARRANZ PADILLA Maria (European Commission - JRC); BELTRAN MIRALLES Manuel (European Commission - JRC); GUERREIRO MIGUEL Mecia (European Commission - JRC) |
| Abstract: | Starting in 2025, the Corporate Sustainability Reporting Directive (CSRD) will strengthen disclosure practices for company transition plans. These plans detail the contribution of corporates to the transition to a sustainable economy. In the meantime, credible transition plans have already become one of the key tools for companies to raise transition finance, as defined in Commission Recommendation (EU) 2023/1425. They are also expected to deliver highly valuable data serving different purposes –from strategy to risk management– and various stakeholders –from financial institutions to policymakers. Defining an EU Transition Plan Credibility Assessment Framework is therefore an opportunity to support the market, and may inform the definition and tracking of transition finance. The JRC has developed two tools –assessment questions and assessment KPIs– to assess specific determinants of a transition plan's credibility: geographical dependencies at asset-level (e.g. availability of resources, policy context) and how those dependencies are addressed. These assessment questions and KPIs may be used by companies to increase the credibility of their transition plan, by financial institutions to assess the credibility of companies’ transition plans and by policymakers to inform public policy and financing. Analysing the geographical dependencies of company transition plans in energy-intensive industries can inform stakeholder dialogues and infrastructure investments on the ground at EU, Member States and regional level. Territorial knowledge should be part of the design of industrial policy that is fit for the Clean Industrial deal, as it enhances public-private partnerships and multi-level governance. |
| Date: | 2024–08 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139084 |
| By: | Ivan Ackermann; Doina Radulescu; Doina Maria Radulescu |
| Abstract: | Policies to address climate change and the energy transition are increasingly gaining ground. However, a large body of research has mainly focused on the efficiency aspect of different instruments rather than their unintended side-effects. Only recently, both policymakers as well as researchers have started to emphasise equity aspects of these policies, since the acceptability of different measures also hinges upon the redistributional implications. This paper contributes to the growing body of research on energy expenditure in-equality in advanced economies by quantifying the regressivity of energy expenditures across 19 European Union countries for the years 2010, 2015, and 2020. We reveal a consistent pattern of regressive energy expenditures across all countries and time periods, with significant variability in the degree and regressivity observed. Our analysis highlights the importance of a nuanced approach to assessing energy expenditure inequality and tailoring suitable energy and climate policies, as countries with the highest or lowest shares of disposable income spent on energy do not necessarily align with those exhibiting the most pronounced regressivity. Tailored policy instruments are essential, particularly when addressing the needs of specific groups, such as low-income households dependent on fossil-based heating systems. However, if broader population segments are affected, more complex solutions may be necessary. We also examine the contributions of various socio-demographic factors to explaining energy expenditures inequality, finding that certain characteristics, such as house-hold size or socio-economic status, contribute to a more even distribution of energy expenditures in the population. These insights suggest that policies aimed at reducing energy expenditure inequality may extend beyond income-based transfers to address the specific needs of different socio-demographic groups. |
| Keywords: | energy policy, energy expenditures, regressivity |
| JEL: | D31 H23 Q48 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11390 |
| By: | Shamim Homaei; Simon Roussanaly; Asgeir Tomasgard |
| Abstract: | In power markets, understanding the cost dynamics of electricity generation is crucial. The complexity of price formation in the power system arises from its diverse attributes, such as various generator types, each characterized by its specific fixed and variable costs as well as different lifetimes. In this paper, we adopt an approach that investigates both long-run marginal cost (LRMC) and short-run marginal cost (SRMC) in a perfect competition market. According to economic theory, marginal pricing serves as an effective method for determining the generation cost of electricity. This paper presents a capacity expansion model designed to evaluate the marginal cost of electricity generation, encompassing both long-term and short-term perspectives. Following a parametric analysis and the calculation of LRMCs, this study investigates the allocation of investment costs across various time periods and how these costs factor into the LRMC to ensure cost recovery. Additionally, an exploration of SRMCs reveals the conditions under which LRMCs and SRMCs converge or diverge. We observe that when there is a disparity between LRMC and SRMC, setting electricity generation prices equal to SRMCs does not ensure the complete recovery of investment and operational costs. This phenomenon holds implications for market reliability and challenges the pricing strategies that rely solely on SRMCs. Furthermore, our investigation highlighted the significance of addressing degeneracy in the power market modeling. Primal degeneracy in the SRMC model can result in multiple values for the dual variable representing SRMC. This multiplicity of values creates ambiguity regarding the precise SRMC value, making it challenging to ascertain the correct estimation. As a result, resolving degeneracy will ensure the reliability of the SRMC value, consequently enhancing the robustness and credibility of our analysis. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2410.15861 |
| By: | Martin Schnauss; Laura Archer-Svoboda |
| Abstract: | The imperative for energy efficiency in real estate investments has been amplified by growing environmental awareness and economic factors. The escalation of energy costs has led to a critical re-evaluation of energy efficiency and the need for property upgrades, particularly in Switzerland. Here, a significant portion of residential real estate is managed by real estate funds, pension funds, and other financial institutions, which are under increasing pressure from investors and regulators to improve the environmental sustainability of their portfolios. In addition, newly enacted regulations imposing rent caps on properties that have not undergone energy-efficient renovations pose a risk to future rental income streams. This context underscores the critical need for improved methods of measurement and accountability. Our presentation addresses the formulation of modern, transparent and data-centric strategies for valuing Swiss real estate assets, with a focus on energy efficiency, combating obsolescence and projecting future market values. Our research highlights ways to assess and manage changing environmental and regulatory requirements. |
| Keywords: | Energy Efficiency; Rating; sustainability |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-201 |
| By: | Emran Sabrine; Canuto Otaviano |
| Abstract: | This paper explores the impact of commodities financialization on crude oil prices and their volatility. While some commodities have been market movers for centuries, introducing others, such as oil, to the financial markets is more recent. The increase in investors' appetite for commodity investing has led to commodities’ financialization, which is often considered an amplifier of commodity price volatility. This paper focuses on the relationship between crude oil prices and the financialization argument through the commitment of traders undertaking long and short positions on the WTI crude oil to study their impact on spot prices and, thus, on crude oil's volatility. It reviews recent swings in oil prices and the correlation between prices of crude oil and speculative positions in financial markets. It also focuses on the relationship between crude oil prices, speculative positions, and volatility represented by the CBOE Crude Oil Volatility ETF through econometric models. The aim is to bring additional information to the literature on whether commodities financialization, specifically the presence of hedgers on crude oil markets, are linked to the volatility in energy markets. We rely on tools such as correlation levels, the Granger Causality test, Vector Autoregression, and Fully Modified Least Square models to study if additional speculative activity in the Crude Oil market is responsible for adding pressure to oil prices on financial markets. We then conclude with the direction of the link between prices and speculative positions, if investors are shaping the market prices and contributing to higher volatility. |
| Date: | 2023–04 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:rp_02-23 |
| 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:pbecon:pb_33-23 |
| By: | Albanese, Marina; Varlese, Monica |
| Abstract: | Digitalization, driven by the transformative impact of digital technologies, plays a crucial role in the energy transition process. Advancements in these technologies are bringing about significant changes in how energy is generated, transmitted, and utilized. In particular, digital technologies enable modern smart grids to optimize energy management by integrating renewable energy sources more effectively. In this context, the paper explores the effects of smart grids on the energy transition, emphasizing their benefits and the key incentives that promote investment. Additionally, it reviews current trends in smart grid development across European countries, with a specific focus on Italy. The objective is to provide a comprehensive overview of the investments required to implement both existing and new smart grid projects. |
| Keywords: | Energy sector, Transition energy, Digitalization, ICT, Smart grids. |
| JEL: | O13 O33 P28 P48 Q01 Q43 Q55 Q56 |
| Date: | 2024–09–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121992 |
| By: | Tom Krebs (University of Mannheim); Isabella Weber (University of Massachusetts, Amherst) |
| Abstract: | In the wake of the global energy crisis, many European countries used energy price controls to fight inflation and to stabilize the economy. Despite its wide adoption, many economists remained skeptical. In this paper, we argue that price controls should be part of the policy toolbox to respond to shocks to systemically important sectors because not using them can have large economic and political costs. We put forward our arguments in two steps. In a first step, we analyze the impact on the German economy and society of the global energy crisis that followed Russia’s attack on Ukraine in February 2022. Our analysis shows that energy shocks matter. Specifically, the one-year GDP loss of the energy crisis 2022 amounts to 4 percent and is comparable to the short-run output losses during the COVID-19 crisis 2020 and the global financial crisis 2008. In addition, during the energy crisis 2022 inflation rates rose dramatically and real wages dropped more than in any other year in postwar Germany. There are also clear signs that the crisis is causing severe long-term economic damage (hysteresis effects). At the beginning of 2024, GDP is 7 percent and real wages are 10 percent below the pre-COVID-19 trend. We argue that the German government handled the immediate response to the energy shock well, but subsequently waited too long to introduce an energy price brake in 2022. This failure to act decisively in response to heightened economic insecurity coincided with a strong rise of the approval rates of the far-right AfD in the summer of 2022. We also show that the German energy price brake was an effective price stabilization policy for households, but did not protect the industrial base appropriately making it more likely that the German economy will continue to stagnate. In a final step, we turn to the use of price controls as an optimal policy response to an energy shock within a general equilibrium framework. We develop a simple production model with an energy sector and shows that price controls are socially optimal whenever self-fulfilling expectations generate endogenous price uncertainty in the wake of an energy shock. We also link our analysis to the so-called sunspot literature that was developed in the 1980s as a response to the rational-expectations revolution in macroeconomics. Finally, we use our theoretical analysis to shed some light on the economic policy debate and the resistance of German mainstream economists to the introduction of energy price controls in 2022. |
| Keywords: | Global energy crisis, German economy, endogenous uncertainty, price controls, inflation, stabilization policy |
| JEL: | D52 D84 E12 E32 E64 Q43 Q48 |
| Date: | 2024–03 |
| URL: | https://d.repec.org/n?u=RePEc:agz:wpaper:2403 |
| By: | Christian de Boissieu |
| Abstract: | La transition énergétique et écologique (TEE) est inéluctable, souhaitable et désormais acceptée au plan mondial. Mais le financement de cette transition demeure fort incertain. L’objet de ce Policy Paper est d’analyser les besoins de financement à considérer, et de passer en revue les différents canaux financiers possibles. Des pistes ont déjà été lancées, des procédures et des instruments sont mis en place, mais tout cela reste insuffisant. Il va falloir combiner un grand nombre de solutions, lesquelles vont exiger des innovations financières, l’application élargie des critères ESG, une adaptation de certaines réglementations bancaires et financières et plus de coopération internationale. Pour conclure, cet article propose un certain nombre de recommandations pour faciliter le financement de la TEE. |
| Date: | 2023–05 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pp_08-23 |
| 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:pbcoen:pb_25-24 |
| By: | Rim Berahab |
| Abstract: | The volatility in energy markets since the outbreak of the Covid-19 pandemic in 2019/2020 has continued, with unprecedented uncertainty about global energy supply developing over the course of 2022 in the wake of Russia's invasion of Ukraine, against a backdrop of weakening macroeconomic conditions and high inflation. While some perceived this as a potential setback for the energy transition, others saw it as an opportunity to move away from fossil fuels and accelerate the development of clean technologies. This Policy Brief explores five recent trends that are likely to shape the transformation of the energy system in 2023 and highlights clean technology challenges to accelerate the transition to a greener future. |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_04_23 |
| By: | Sylla Maldini; Andrée De Serres |
| Abstract: | This study is based on the analysis of the evolution of institutional and regulatory frameworks of four territorial jurisdictions concerning the fight against climate change and biodiversity protection in the real estate sector: European Union, United-Kingdom, United States, and Canada.When it comes to the fight against climate change, obligations for new construction and major renovations are growing. It is possible to observe the inclusion of an approach considering the life cycle of buildings, the monitoring of construction waste, or even the use of less polluting materials and energy consumptions limits with ultra-efficient buildings or even energy production. Existing buildings for their part are not left out, since they will still constitute a large majority of the real estate stock of the legal frameworks studied. Although the room for maneuver is less, the obligations mainly focus on the energy performance dimensions and requirements increasingly target owners by penalizing them in the event of non-compliance with the consumption thresholds per m2 or ft2 that have been imposed. These sanctions may result in the impossibility of renting non-compliant spaces. All these elements are accompanied by tax incentives or assistance to stimulate the achievement of these thresholds.The biodiversity protection is less established than the fight against climate change, because the government concerns about their ecosystemic impacts have emerged more recently. Nevertheless, considerable dynamism exists to frame this theme. In fact, certain frameworks are already requiring for new constructions such as the need to consider as a priority the realization of dense developments on brownfields sites in urban areas in order to limit sprawl, integrate natural elements within the building to ensure that real estate development does not result in a loss of biodiversity or the obligation to prioritize the in-depth renovation of a building before destroying it to build a new one and justifying why, if applicable. Existing buildings are not left out since obligations relating to greening rates are already effective in some jurisdictions and are on the shelf for others.Finally, in terms of data disclosure, most regulatory frameworks have obligations relating to organizations trading on public stock markets. However, some of them have obligations aiming at private organizations. For the moment the thresholds (of turnover, number of employees and number of assets under management) target large organizations, but these thresholds will fall year after year to include more companies. Jurisdictions which have not yet established obligations in this regard are working on similar requirements. These requirements or draft laws are based on benchmarks such as the TCFD, the ISSB or even EFRAG.All these elements in terms of existing or currently developing obligations complicate the development and ownership of real estate assets. It is a sector in which it becomes necessary to collaborate with partners of choice and to develop knowledge and know-how internally to manage existing stock in order to limit the holding of non-compliant properties (by transferring them or undertaking upgrading work). Monitoring and analyzing the regulatory framework is also essential to anticipate the obligations that could arise and ensure that the long-term value of the assets is preserved as well as the value creation model, because the maintenance or retrofit works on the assets as well as the collection of quality data that can be disclosed generates significant costs. |
| Keywords: | Disclosure; Governance & ESG; Regulatory frameworks; Sustainable Real Estate |
| JEL: | R3 |
| Date: | 2024–01–01 |
| URL: | https://d.repec.org/n?u=RePEc:arz:wpaper:eres2024-149 |
| By: | Hafez Ghanem |
| Abstract: | Humanity is losing the climate battle, and existing international institutions are not delivering on climate change. Hence, there is a need for a new international institution that would be a repository for global knowledge on climate change, and would advise governments on climate policies, develop green projects across the Global South, mobilize financing for those projects, and support project implementation. The proposed Green Bank would be different from existing multilateral development banks: (1) it would include private shareholders as well as governments; (2) voting rights would be organized so that countries of the Global South would have the same voice as countries of the Global North and private shareholders; and (3) it would only finance green projects which could be national, regional, or global. The Green Bank would primarily support private green investments through equity contributions, loans, and guarantees. It could also support public investments by using grants to buy-down the interest on other multilateral development bank loans that finance projects that support adaptation to climate change. The Loss and Damage Fund agreed at COP27 could be the source of those grants. This proposal builds on the Bridgetown Initiative, with the aim of mobilizing private funding, in addition to the public trust fund that the initiative proposes. The Green Bank would partner with other institutions and complement the work of existing multilateral development banks, and of specialized funds. |
| Date: | 2023–02 |
| URL: | https://d.repec.org/n?u=RePEc:ocp:rpcoen:pb_06-23 |
| By: | Kemper, Marina; Styles, Alexandra; Mundt, Juliane; Werner, Robert; Kreis, Philippa |
| Abstract: | Sowohl in der täglichen Forschungs- und Projektarbeit mit unseren Kunden als auch bei unserem Mitwirken in der nationalen, europäischen und internationalen Normung (z.B. DIN, CEN-CENELEC, ISO) befassen wir uns immer wieder mit Fragestellungen rund um die Nachweisführung und Klimabilanzierung. Ein viel diskutiertes Thema ist dabei das Spannungsfeld zwischen dem markt- und dem ortsbasierten Ansatz bei der Klimabilanzierung von Strom. Deren parallele Anwendung stellt in der derzeitigen Ausgestaltung und praktischen Handhabung ein Hemmnis für die Vergleichbarkeit und in der Folge für die Glaubwürdigkeit der Klimabilanzierung insgesamt dar. Mit diesem Discussion Paper möchten wir die aktuelle Problematik näher beleuchten - vor allem aber eine Diskussion über mögliche Lösungsansätze anregen sowie ein Ausrufezeichen hinter die Notwendigkeit setzen, die Harmonisierung der bestehenden Ansätze zur Strombilanzierung in den Fokus zu rücken. |
| Abstract: | Hamburg Institut has been providing research and consulting services in the fields of climate change mitigation and energy system transformation since 2012 with an interdisciplinary team of experts. Both in our daily research and project work with our customers and in our participation in national, European and international standardisation processes, we keep addressing questions related to certification systems and carbon accounting. A much-discussed topic is the gap between the market-based and the location-based approach to handling emissions from electricity purchases. In their current design and practical application, the parallel use of the two approaches represents an obstacle to comparability and, consequently, to the credibility of carbon accounting as a whole. With this paper, we would like to shed more light on the current issues - but above all, we would like to encourage discussion on possible solutions and emphasise the need to harmonise the existing approaches to electricity accounting. |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:hirdps:304458 |
| By: | VILKMAN Marja |
| Abstract: | This report summarises the recent advancements in battery technologies for mobility applications, focusing on electric vehicles, and looks at the main barriers encountered in their journey from lab to market. Both Li-ion batteries and next-generation batteries are discussed. The report includes information about identified barriers for scaling-up the battery manufacturing industry in Europe and proposes solutions to overcome them. It identifies technical challenges, such as manufacturing of Li-ion and next-generation batteries at industrial scale, while maintaining high yield and quality without excessive cost. It also reveals that scaling up is hindered by financial issues and lack of funding, especially given how expensive and risky setting up raw material, recycling or cell manufacturing factories is. The findings also highlight how unpredictable permitting can be a significant barrier, as well as the limited citizen acceptance of either new factories or electric vehicles in general. As solutions, we propose setting up pilot facilities to validate new processes and materials, increased financial support and an improved financial framework to create a level playing field when compared to USA and Asia, and clear rules for permitting. Also, activities to train workforce for the factories is needed, as well as sharing clear and reliable information about batteries for citizens and policymakers. The findings are based on interviews with a sample of 17 research centres, companies and umbrella organisations in Europe along the battery value chain, as well as literature information and the author’s participation in European projects, events, and networks. Relevant policies, such as the Net-Zero Industry Act, the Critical Raw Materials Act and the Batteries Regulation, are taken into consideration in the analysis. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc139632 |
| 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:pbecon:pb_41-23 |
| By: | Sandrine Michel (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Lauren Caquant; François Benhmad (MRE - Montpellier Recherche en Economie - UM - Université de Montpellier) |
| Abstract: | The anthropogenic nature of GHG emissions is now accepted. Standards, taxes and markets: economists put forward a variety of instruments to fight against climate warming. In 1997, the Kyoto Protocol institutionalized market instruments to tackle climate change. A market for emissions permits would offer several advantages. It would provide a price signal to economic agents, which would be the best way to ensure effective decentralized decision-making for the energy transition. In a quantitatively constrained system of quotas, it would also enable pollution control efforts to be shared out, minimizing the collective costs of reducing emissions (Crocker 1966, Dales 1968, Montgomerry 1972). In 2005, the European Commission created the first binding carbon market (De Perthuis 2008). The European Emission Trading System (EU-ETS) is a market for tradable emissions permits that sets national caps on CO2 emissions (Gollier & Tirole, 2015), divided between different installations. For each, carbon quota holders must arbitrate between investing in clean production modes, buying quotas on the EU ETS to ensure compliance, or holding them for a later period. From the outset, the power generation sector received the majority of allocations (Cartel et al. 2017). This production emits a significant amount of CO2, which varies according to the quantity produced and the fuel used. We also note that electricity prices now include European capacities, which are part of the interconnected grid. In this context, European prices are still largely dependent on the price of fossil fuels, which play a major role in national power mixes, but also on the price of carbon. French electricity prices are linked to the European electricity market, and therefore to the electricity mixes of the other countries in the zone. This is why, despite a highly decarbonized energy mix, the question of its potential sensitivity to the EU ETS price signal is open. With European interconnection, the price of allowances on the EU-ETS market could be reflected in the price of French electricity, and in its expectations on futures markets. If this were the case, then the highly institutional nature of the electricity and carbon markets would have enabled price formation, capable of supporting the decarbonization of European electricity mixes, wherever the electrons are consumed. |
| Keywords: | Energy and Environment, Energy Demand, Energy Supply, Prices, EU ETS |
| Date: | 2024–06–25 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04723704 |
| By: | Marcin Borsuk (Institute of Economics, Polish Academy of Sciences, University of Oxford); Nicolas Eugster (UQ [All campuses : Brisbane, Dutton Park Gatton, Herston, St Lucia and other locations] - The University of Queensland); Paul-Olivier Klein (Laboratoire de Recherche Magellan - UJML - Université Jean Moulin - Lyon 3 - Université de Lyon - Institut d'Administration des Entreprises (IAE) - Lyon); Oskar Kowalewski (Institute of Economics, Polish Academy of Sciences, LEM - Lille économie management - UMR 9221 - UA - Université d'Artois - UCL - Université catholique de Lille - Université de Lille - CNRS - Centre National de la Recherche Scientifique, IÉSEG School Of Management [Puteaux]) |
| Abstract: | This study examines the relationship between family firms and carbon emissions using a large cross-country dataset of 6600 non-financial firms over the period 2010–2019. We find that family firms emit less carbon than non-family firms, especially after the Paris Agreement. Several factors contribute to this outcome, including governance structure, the degree of family control, R&D spending, and the issuance of green patents. Our study also shows that despite lower carbon emissions, family firms have lower environmental scores, primarily due to their reduced public commitment to emission reduction. Both environmental scores and carbon emissions increase when non-family CEOs are appointed and when family ownership decreases, indicating that agency conflicts may influence these outcomes. |
| Keywords: | Carbon emission, ESG Governance, Family firms, Greenwashing, Climate change |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04710120 |
| By: | Christoph Böhringer; Carolyn Fischer; Nicholas Rivers |
| Abstract: | This paper evaluates alternative options for rebating revenues from a unilateral emissions price, focusing on energy-intensive and trade-exposed industries. A theoretical model is developed to demonstrate that conditional rebating policies—which would be distortionary in a first-best world—may be welfare-improving. For example, this could occur in a context where emissions leakage and terms-of-trade changes are associated with the introduction of an emissions price, or when political constraints prevent the emissions price from fully reflecting the social cost of the e missions. A numerical simulation model is used to quantify the differences in welfare, leakage, terms of trade, output, and emissions across carbon prices with alternative rebating options for these leakage-prone industries. The different situations of the European Union and the United States are used as examples. The findings indicate that from a domestic perspective, rebating emissions revenues proportionately to firm output is typically superior to other rebating options when the emissions price is set close to the social cost of emissions. Rebating emission revenues to reward reductions in emissions intensity is typically superior when emissions are significantly under-priced. A country that is more emissions-intensive and less exposed to leakage may prefer to rebate in proportion to total abatement when the emissions price is sufficiently low. The quantitative results indicate that there are significant welfare losses for incorrect choices of the rebating option. |
| Keywords: | unilateral climate policy, carbon pricing, revenue recycling |
| JEL: | D58 D62 H23 Q58 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11376 |
| By: | Sandrine Michel (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier); Alexis Vessat (UMR ART-Dev - Acteurs, Ressources et Territoires dans le Développement - Cirad - Centre de Coopération Internationale en Recherche Agronomique pour le Développement - UPVM - Université Paul-Valéry - Montpellier 3 - UPVD - Université de Perpignan Via Domitia - CNRS - Centre National de la Recherche Scientifique - UM - Université de Montpellier) |
| Abstract: | Sub-Saharan Africa (SSA) occupies a special position when it comes to achieving universal access to electricity, the goal of SDG7. The rate of access has progressed significantly. However, in a business-as-usual scenario, if the combination of public (governments and national companies) and private investment were to continue at the current pace, the goal of universal access to electricity in SDG7 would not be achieved. On the one hand, this Business as Usual trajectory is based on the extension of the centralized grid, but it also benefits from an increase in territorial coverage based on decentralized technologies. By the way, minigrids of 2nd generation (diesel and hydro) and, more recently, minigrids of 3rd generation (solar power), provide access to previously unserved peri-urban and rural areas. Last but not least, solar-based standalone systems are paving the way for even the most remote areas. Inspired by the main international financial institutions, a consensus seems to be emerging to accelerate this trajectory. It is based on the massive implementation of solar minigrids, including storage capacities, whose full levelized costs have fallen rapidly and sharply. And these costs are set to fall further, not least due to the increase in load factors made possible by good-quality production and, consequently, by a steady rise in consumption. These forecasts, which have been translated into comprehensive public policy projects in some countries, most often assume that the production capacity installed via minigrids will eventually be integrated into the main grid. In SSA, access to electricity is set to increase as the power system evolves (Foster et al. 2021). While the supply side and its organization to achieve this objective are now well designed (ESMAP 2022), on the demand side the analysis remains fragile, subject to the variability of macroeconomic growth conditions (Egli et al. 2023). As the Covid 19 crisis abruptly reminded us, these conditions are a limitation of the electrification schemes envisaged. The purpose of this paper is to review the pricing conditions developed. Indeed, only tariffs that make it possible to contextualize the growth of access both in relation to the technical progress affecting supply, and in relation to the calibration of demand based on objectifiable data, and in particular the income structure of consumers in the economies concerned. |
| Keywords: | Energy Access, Urban access, Rural access, Pricing, Subsaharan Africa |
| Date: | 2024–05–14 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04723812 |
| By: | RADOVANOVIC Nikola (European Commission - JRC); STEVANOVIC CARAPINA Hristina |
| Abstract: | The Western Balkan region is in an advanced stage of the Smart Specialisation design process, with several economies deeply involved in its implementation. The commitment of these economies to adopt an EU-style, transformational innovation policy reflects a dedication to evidence-based and bottom-up innovation policymaking. This approach aims to enhance regional competitiveness sustainably. The EU Green Deal and the associated Green Agenda for the Western Balkans represent templates for transformative change that should underpin innovation policies. Strong parallels between this green transition and Smart Specialisation emerge in shared elements such as sustainability, environmental priorities, societal challenges, and digitalisation. This study investigates regional research and innovation capacities for the green transition through the lens of Smart Specialisation in the Western Balkan region. It proposes policy actions to leverage these capacities within both national frameworks and collaborative initiatives. |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:ipt:iptwpa:jrc136482 |
| By: | Gruner, Friedemann |
| JEL: | Q56 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:vfsc24:302391 |
| By: | Cleo Rose-Innes (Independent analyst and advisor) |
| Abstract: | The decision to end the use of fossil fuels for energy production by 2050 will result in a permanent collapse in demand for oil. This paper examines the likely effects of this "Africa oil shock" on three large African countries, and whether the International Monetary Fund and the World Bank Group would be able to deliver on their Bretton Woods mandate—avoiding the resulting balance of payments and fiscal crisis. The paper also considers whether the expansion of their mandates to include reducing the risk of climate change and limiting the impact of climate shocks also encompasses actions to minimize or avoid this financing crisis. There are seven recommendations. |
| Date: | 2024–10–07 |
| URL: | https://d.repec.org/n?u=RePEc:cgd:ppaper:342 |
| By: | Christoph Böhringer; Knut Einar Rosendah; Halvor Briseid Storrøsten (Statistics Norway) |
| Abstract: | Countries with ambitious climate targets are concerned about carbon leakage to countries with more lenient or no carbon pricing. A common policy measure against leakage is output-based allocation of emissions allowances, whose effectiveness could be further enhanced by consumption taxes levied on the carbon intensity of goods. We combine theoretical and numerical analysis to derive optimal combinations of output-based allocation and consumption taxes for different assumptions on the stringency of emissions reduction targets, the coverage of emissions in regulated sectors, and their trade exposure. A key analytical finding is that output-based allocation and consumption taxes are complements rather than substitutes, i.e., the extent of output-based allocation should be higher if combined with a consumption tax. A key numerical finding is that the optimal output-based allocation and consumption tax rates should be set at almost the same rate and increase substantially with the stringency of the emissions reduction targets. |
| Keywords: | Carbon leakage; output-based allocation; consumption taxes |
| JEL: | D61 F18 H23 Q54 |
| URL: | https://d.repec.org/n?u=RePEc:ssb:dispap:1013 |
| By: | Mehdi Farsi; Sylvain Weber |
| Abstract: | This paper is intended as a reference document for the users of the Swiss Household Energy Demand Survey (SHEDS). We outline the survey’s objectives, provide a description of its structure and design, and showcase a selection of potential applications. SHEDS has been fielded annually between 2016 and 2021. Since 2021, the survey is planned every second year until 2029, resulting in a total of ten waves over a fourteen-year period. While presenting a brief history of SHEDS and its utilization in the past, we discuss new perspectives of data requirements for energy research in Switzerland. We also provide some pathways for achieving a wider usage by the energy-research community in particular energy-system modelers. |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:irn:wpaper:24-06 |
| By: | António Afonso; José Alves; João Jalles; Sofia Monteiro; João Tovar Jalles |
| Abstract: | This study examines the effects of geopolitical risk and global uncertainty on energy prices, conditioned by different exchange rate regimes, for 185 economies over the period 1980-2023. The central question is how uncertainty impacts energy prices and whether exchange rate flexibility mediates these effects. Using panel data techniques, including OLS and Panel VAR, we assess both demand and supply-side channels, exploring country-specific differences. Our key findings indicate that uncertainty shocks significantly raise energy prices, particularly in countries with flexible exchange rates, where currency depreciation amplifies global price fluctuations. Asymmetric results are found regarding emerging markets, with flexible exchange rates, which tend to have lower energy prices, while oil-exporting countries and OPEC members experience distinct pricing dynamics. These results underscore the importance of exchange rate policy choices in shaping energy market responses to global shocks. Policymakers may need to adopt complementary measures to manage the volatility arising from global uncertainty. |
| Keywords: | geopolitical risk, world uncertainty index, global energy markets, exchange rate regimes, asymmetric effects |
| JEL: | C23 E44 G32 H63 |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:ces:ceswps:_11384 |
| By: | Ahmad, Mahyudin; Chen, Jen-Eem; Mohd Zulkifli, Shaliza Azreen; Tan, Yan-Ling; Mustofa, Moh. Solehatul |
| Abstract: | Tourism development has become one of the key drivers of economic growth in many ASEAN countries, however, the adverse environmental impact of tourism and economic growth has raised significant concerns among the policymakers in region. This study investigates the role of tourism development in the context of Environmental Kuznets Curve (EKC) hypothesis across 10 ASEAN countries over a 25-year period from 1995 to 2019 via panel estimators robust to cross-sectional dependence. The findings reveal tourism contributes to environmental degradation significantly. On the EKC hypothesis, the evidence is mixed as only the Panel Corrected Standard Errors estimation indicates an inverted U-shaped relationship between emissions and GDP per capita. The threshold value of GDP per capita is estimated to be around USD 12, 000 showing that the current economic development in ASEAN is still harmful to environment. Furthermore, renewable energy is found to be a strong mitigating factor. Population size, on the other hand, is a significant driver of both CO2 and GHG emissions. The findings of this study highlight the complex relationship between tourism development, economic growth, and environmental quality in the ASEAN region. Subsequently, several policy implications are discussed |
| Keywords: | CO2 emissions, Environmental Kuznets Curve, panel data econometrics, renewable energy, tourism development. |
| JEL: | O13 Q56 |
| Date: | 2024–09–20 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:122153 |