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on Energy Economics |
| By: | Garcia Silva, Pablo; Gutierrez Schweitzer, Maria de los Angeles; Medina Guzman, Juan Pablo |
| Abstract: | We examine the macroeconomic effects of the energy transition, focusing on the impact of oil prices on GDP, productivity and inflation. We find that energy dependence on fossil fuels increases vulnerability to oil price shocks, negatively affecting Total Factor Productivity (TFP). Using the Solow decomposition and including energy as part of the capital stock, we find two key effects: The Price and Scale Effect, in which higher energy prices increase production costs and reduce TFP; and The Recomposition Effect, in which greater use of domestic renewables boosts TFP by reducing reliance on non-renewable imports. Our findings for Chile between 2001 and 2019 the TFP adjustment for energy factors provides a complementary and enriched view of productivity, especially in periods or contexts with high volatility in energy consumption or prices. Finally, using a New-Keynesian DSGE model calibrated for Chile, we examine the macroeconomic consequences of the energy transition. A counterfactual scenario shows that, without diversification of the energy matrix, the economic impact of higher oil prices would have been more severe, with larger GDP declines, higher inflation, tighter monetary policy, and a steeper fall in TFP, highlighting the benefits of Chile's shift to a more renewable energy matrix. |
| Keywords: | DSGE Model, Aggregate Production Function, Monetary Policy, Environment and Growth, Energy Shocks |
| JEL: | C54 E23 E52 O44 Q43 |
| Date: | 2025–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123225 |
| By: | Madsen, Theis; Kountouris, Ioannis; Bramstoft, Rasmus; Koundouri, Phoebe; Keles, Dogan |
| Abstract: | Decarbonization of the energy system is a major challenge for today’s energy system to combat climate change. This challenge is addressed in the EU through different political strategies and plans such as the European Green Deal, Fit-for-55, and REPowerEU, which set specific emission reduction goals for 2030 and 2050. Different mechanisms are in place to achieve these goals, such as the system-wide ETS and the country-level National Energy and Climate Plans. However, there is a difference in the enforcement level between European countries, despite their connection to the same integrated energy system. Hence, there might be discrepancies between the effectiveness of the EU system-level target and the achievements of national goals and plans. To understand and address these discrepancies, we utilize the open-source, sector-coupled energy system optimization model Balmorel to analyze the impact of different decarbonization methods in a fully interconnected, pan-European energy system. In three scenarios, we consider 1) the use of only a system-level carbon budget in line with Fit-for-55 and the European Green Deal, 2) the application of a carbon budget at the country level, and 3) the use of a carbon tax instead of a budget on all production of electricity, heat, and hydrogen. The novelty of this paper lies in the first comparison of these three decarbonization mechanisms and their impact on alignment with policy targets. We demonstrate that the pan-European energy system can reach decarbonization targets across all scenarios. Still, diving from the system perspective into the country level, challenges appear, causing nations to overshoot their allocated budgets. Country-level emission targets are more effective with little cost increase compared to the only system-level target scenario but also cause cross-border effects of fossil fuel based energy production. The carbon tax scenario is the most effective at decarbonizing but comes at up to 27 % higher costs in intermediary years, requiring more early investments. |
| Keywords: | Energy policy, Energy Transition Pathway, Decarbonization Strategies, Balmorel, Energy System Modeling |
| JEL: | C3 C8 O2 |
| Date: | 2024–02 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:121998 |
| By: | Ibadoghlu, Gubad |
| Abstract: | Azerbaijan, heavily dependent on oil and gas exports, faces significant economic challenges due to fluctuations in global energy markets, declining oil revenues, rising imports, and increasing fiscal instability. This paper examines the potential impact of the Trump administration’s energy policies on global oil prices and their broader implications for Azerbaijan’s economy. While deregulation and expanded fossil fuel production in the U.S. could drive oil prices down, geopolitical uncertainties surrounding Russia, Iran, and Venezuela may offset these effects. Additionally, U.S. alignment with Saudi Arabia and OPEC+ members, combined with capital discipline in the energy sector, may constrain the anticipated increase in production. Given these dynamics, Azerbaijan must urgently implement policy reforms and economic diversification strategies to mitigate potential risks and ensure long-term financial stability. |
| Keywords: | Trump Energy Policy, Oil Prices, Azerbaijan Economy, National Energy Emergency Act, U.S. Oil Production, Global Energy Market, Fossil Fuels, Geopolitical Risks, Oil and Gas Revenues, Economic Diversification |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:zbw:esprep:309950 |
| By: | NAKAISHI Tomoaki; YOO Sunbin; KUMAGAI Junya; MANAGI Shunsuke |
| Abstract: | The adoption of residential solar photovoltaic (PV) systems is widely regarded as a critical measure to mitigate global warming by reducing carbon emissions and supporting a shift toward renewable energy. However, the broader impact of residential solar PV on household consumption behaviors remains underexplored. This study investigates the effects of residential solar PV adoption on household electricity consumption, with a focus on the mediating roles of pro-environmental behaviors and technology adoption. Using structural equation modeling (SEM) and data from Japanese households, we examine electricity costs post-adoption as a proxy for usage and emissions, highlighting seasonal variations across winter, summer, and spring. Our findings reveal that residential solar PV adoption is associated with increased electricity costs in winter (13.899%) and spring (2.429%), but a decrease in summer (6.322%). This pattern is partly driven by a greater use of energy-efficient products and electric vehicles (EVs) beyond levels that would have been previously been necessary, actually increasing costs, as households perceive solar energy as a low-cost resource. These insights suggest that while solar PV reduces fossil fuel reliance, it may inadvertently lead to higher energy use. To maximize the environmental benefits of solar energy, policies that promote energy conservation, incentivize battery storage, and curb excessive use of energy-efficient products are recommended. |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:eti:dpaper:25011 |
| By: | Vinícius da Silva Centeno |
| Abstract: | This work aims to develop an analytical model that addresses the transition to a low-carbon economy by interplaying demand-driven dynamics and energy supply constraints. As the modeling of energy production in the ecological macroeconomics literature has been addressed within supplydriven growth models, the novelty of this article lies in integrating the energy sector into a demandled growth framework. On the growth side, our model follows the Sraffian supermultiplier literature (Serrano, 1995). On the energy side, it draws inspiration from Bernardo and D’Alessandro (2016), explicitly modeling energy production from renewable sources. We assume business-as-usual and green government expenditures are sources of autonomous demand, with investment and capital stock composed of green and conventional components, respectively. The growth and energy sides of the model are connected through a green investment equation, which embodies a constraint on green capital stock accumulation given by the availability of renewable energy. Therefore, the growth dynamics are demand-driven, but the feasibility of the ecological transition is supply-constrained. Numerical simulations demonstrate that scenarios combining green fiscal policy and low growth are more conducive to promoting the energy transition, aligned with post-growth approaches. |
| Keywords: | Ecological macroeconomics; demand-led growth; energy transition; mission-oriented policy Jel Classification:Q57; E11; E12; E62; P28 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:usi:wpaper:922 |
| By: | Andrea Bastianin (Department of Economics, Management, and Quantitative Methods, University of Milan and Fondazione Eni Enrico Mattei); Xiao Li (Department of Economics, Management, and Quantitative Methods, University of Milan; Fondazione Eni Enrico Mattei and University of Pavia); Luqman Shamsudin (Fondazione Eni Enrico Mattei and Department of Environmental Science and Policy, University of Milan) |
| Abstract: | The transition to a cleaner energy mix, essential for achieving net-zero greenhouse gas emissions by 2050, will significantly increase demand for metals critical to renewable energy technologies. Energy Transition Metals (ETMs), including copper, lithium, nickel, cobalt, and rare earth elements, are indispensable for renewable energy generation and the electrification of global economies. However, their markets are characterized by high price volatility due to supply concentration, low substitutability, and limited price elasticity. This paper provides a comprehensive analysis of the price volatility of ETMs, a subset of Critical Raw Materials (CRMs). Using a combination of exploratory data analysis, data reduction, and visualization methods, we identify key features for accurate point and density forecasts. We evaluate various volatility models, including Generalized Autoregressive Conditional Heteroskedasticity (GARCH) and Stochastic Volatility (SV) models, to determine their forecasting performance. Our findings reveal significant heterogeneity in ETM volatility patterns, which challenge standard groupings by data providers and geological classifications. The results contribute to the literature on CRM economics and commodity volatility, offering novel insights into the complex dynamics of ETM markets and the modeling of their returns and volatilities. |
| Keywords: | Critical Raw Materials, Energy Transition, Features, Volatility, Forecasting, Density forecasts |
| JEL: | C22 C53 C58 Q02 Q30 Q42 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.04 |
| By: | Philipp M. Richter; Joschka Wanner |
| Abstract: | In this EconPol Policy Report, we assess various options for EU climate policy utilizing a quantitative trade and environment model. We investigate the EU’s 2030 emission reduction target, evaluate the impact of the newly introduced Carbon Border Adjustment Mechanism (CBAM), and analyze different climate coalitions with the EU at their core, including the recently launched “G7-led Climate Club.” We thereby assess the impact on both national and global emissions accounting for carbon leakage, on international economic competitiveness and changes in the global market shares of the EU, as well as on aggregate income gains and losses.Our findings indicate that EU climate policies do not impose substantial costs, have a limited impact on global emissions, but generate substantial gains from avoided climate damages. The only modest global emission reduction is primarily due to the EU’s relatively small share in global emissions and carbon leakage in response to its climate policy. Our analysis demonstrates that the CBAM reduces, but does not entirely eliminate, carbon leakage and helps prevent income losses for the EU. In contrast to the low average costs for the EU across all scenarios, we show that the costs of climate policy are disproportionately borne by resource-rich countries. Achieving significant global emission reductions will require a climate coalition. However, our findings suggest that relying solely on a “G7-led Climate Club” is insufficient for the necessary global emission reductions. This underscores the need to foster a comprehensive global coalition. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:econpr:_53 |
| By: | Federico Lubello |
| Abstract: | We develop a dynamic, stochastic general equilibrium (DSGE) model for the euro area that accounts for climate change-related risk. The model features polluting (“brown”) firms and non-polluting (“green”) firms and a climate module with endogenous emissions modeled as a byproduct externality. In the model, exogenous shocks propagate throughout the economy and affect macroeconomic variables through their impact on interest rate spreads. We assess the business cycle and policy implications of transition risk stemming from changes in the carbon tax, and the implications of micro- and macroprudential tools that account for climate considerations. Our results suggest that a higher carbon tax on brown firms dampens economic activity and volatility, shifting lending from the brown to the green sector and reducing emissions. However, it entails welfare costs. From a policy-making perspective, we find that when the financial regulator integrates climate objectives into its policy toolkit, it can minimize the tradeoff between macroeconomic volatility and welfare by fully coordinating its micro- and macroprudential policy tools. |
| Keywords: | Climate risk; macroprudential policy coordination; DSGE models |
| JEL: | E1 E2 O41 Q5 Q58 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:bcl:bclwop:bclwp192 |
| By: | Anna Schulze-Tilling |
| Abstract: | Carbon labels have been shown to reduce the carbon footprint of consumption choices in several contexts. But are they also an effective policy tool? This depends on how the reductions produced by carbon labels relate to what can be achieved with the alternative policy tools we have available. This paper establishes a comparison to carbon taxes, using several field experiments in the student canteen. I estimate that carbon labels reduce carbon emissions by approx. 4%, and that a carbon tax of €120 per ton would be needed to achieve similar reductions with price changes alone. This comparison conveys that carbon labels are relatively effective: €120 per ton exceeds current EU ETS trading prices by more than 150% and is three times the current German carbon tax on gasoline. Furthermore, I provide evidence that the main reason carbon labels are effective is not that they are able to correct consumers’ misperceptions about carbon footprints. Instead, they appear to primarily influence consumers by directing attention towards carbon emissions at the moment of choice. |
| Keywords: | carbon footprint, food consumption, welfare, behavioral intervention, field experiment |
| JEL: | D12 C91 C93 Q18 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_639 |
| By: | Hardman, Scott; Chakraborty, Amrita; Hoogland, Kelly; Sugihara, Claire; Helveston, John Paul; Jensen, Anders Fjendbo; Jenn, Alan; Jochem, Patrick; Plötz, Patrick; Sprei, Frances; Williams, Brett; Axsen, Jonn; Figenbaum, Erik; Pontes, Jose; Tal, Gil; Refa, Nazir |
| Abstract: | Most net-zero emissions targets require electrification of the entire light-duty vehicle fleet, and before that the electrification of all new vehicle sales. In this paper, we review literature on demand-side issues related to achieving 100% zero-emissions vehicle sales, focusing on plug-in electric vehicles (PEVs). We discuss potential demand-side challenges to increasing PEV sales and related research gaps, including consumer factors (perceptions, knowledge, and consumer characterises), demand-focused policy (incentives), infrastructure, and energy prices. While global PEV sales have substantially increased in recent years, several challenges remain: some demographic groups are currently underrepresented among PEV buyers (e.g. renters, lower income buyers), some car drivers are resistant to PEVs, incentives are influential but have predominantly benefited higher-income new-car buyers and are being phased out, infrastructure is not sufficiently developed or equally distributed, infrastructure is not user friendly, and some households lack charging access. Some issues we identify may be related to the early stage of the PEV market, though will need to be addressed to reach higher PEV sales and PEV fleet shares. Finally, we outline areas where more research is needed to understand and guide the PEV transition. |
| Keywords: | Engineering |
| Date: | 2025–01–09 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt0xr0c0sq |
| By: | Crampes, Claude; Renault, Jérôme |
| Abstract: | Electricity is consumed continuously night and day and is not storable at large scale. Consequently, in an electricity industry organized and managed efficiently, demand should be tightly responsive to time-varying prices. We explore the consequences of the limited ability of electricity consumers to use price signals in their decisions to withdraw energy from the grid and the advantages of an assistance service that can correct this bias. Depending on the statistical distribution of price misperception types, we determine the allocation of assistance that allows to decrease total consumption and the outcome of different market structures. Because of the impossibility of distinguishing between consumers who underestimate and those who overestimate electricity prices, we show that it may be suboptimal to organize a market for assistance. We also show that it is less efficient to rely on a private integrated monopoly than on two separate private monopolies, one for assistance, the other for energy. |
| JEL: | C72 D24 D47 L23 L94 |
| Date: | 2025–01–30 |
| URL: | https://d.repec.org/n?u=RePEc:tse:wpaper:130188 |
| By: | Marco A. Marini (Department of Social Sciences and Economics, Sapienza University of Rome); Samuel Nocito (Department of Social Sciences and Economics, Sapienza University of Rome) |
| Abstract: | We investigate whether climate activism favors pro-environmental consumption by examining the impact of Fridays for Future (FFF) protests in Italy on second-hand automobile sales in rally-affected areas. Leveraging data on 10 million automobile transactions occurring before and after FFF mobilizations, we exploit rainfall on the day of the event as an exogenous source of attendance variation. Our findings reveal a reduction in both the total number of cars purchased and their average CO2 emissions, with an uptick in the market share of low-emission vehicles and a corresponding decrease in the market share of high-emission counterparts. We test for two potential mechanisms at work: one mediated by an increase in environmental awareness, the other induced by a rational anticipation of future stricter regulations. Empirical evidence suggests that the latter mechanism is generally more pronounced than the former. However, the first channel seems likely to be at work among individuals aged 18-25, a group that is potentially more involved in the FFF movement. |
| Keywords: | Fridays for Future, climate activism, green consumption, carbon emissions, automobiles |
| JEL: | D72 D12 Q53 R41 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.01 |
| By: | Yash Chawla; Katarzyna Chojnacka; Michal Paca; Anna Pudelko; Przemysław Zaleski; Rafal Weron |
| Abstract: | The widespread adoption of selective kitchen and garden waste processing in closed biogas plants is often hindered by financial feasibility and social acceptance. This study presents a comprehensive cost-benefit analysis of waste processing through wet and dry fermentation, evaluating energy recovery options from combined heat and power and compressed natural gas installations. Drawing on data from a Polish investment project and a novel concept in waste management research – a survey of professional energy forecasters, we provide financial projections until 2035 to guide sustainable decision-making. Our results emphasize the economic viability of bio-based energy recovery technologies, while also highlighting the potential social and environmental benefits. By diverting waste from landfills and recovering energy, biogas plants contribute to both energy transition goals and the broader objectives of sustainable waste management, including improved resource efficiency and reduced reliance on fossil fuels. This study offers practical insights for municipalities and businesses, promoting policies that support public-private partnerships and the long-term viability of renewable energy projects within the circular economy framework. |
| Keywords: | Municipal solid waste; Biogas plant; Cost-benefit analysis; Professional forecasters survey |
| JEL: | C22 C51 C53 Q41 Q47 |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ahh:wpaper:worms2501 |
| By: | Neal Ma; Ningkun Zheng; Ning Qi; Bolun Xu |
| Abstract: | The rapid growth of battery energy storage in wholesale electricity markets calls for a deeper understanding of storage operators' bidding strategies and their market impacts. This study examines energy storage bidding data from the California Independent System Operator (CAISO) between July 1, 2023, and October 1, 2024, with a primary focus on economic withholding strategies. Our analysis reveals that storage bids are closely aligned with day-ahead and real-time market clearing prices, with notable bid inflation during price spikes. Statistical tests demonstrate a strong correlation between price spikes and capacity withholding, indicating that operators can anticipate price surges and use market volatility to increase profitability. Comparisons with optimal hindsight bids further reveal a clear daily periodic bidding pattern, highlighting extensive economic withholding. These results underscore potential market inefficiencies and highlight the need for refined regulatory measures to address economic withholding as storage capacity in the market continues to grow. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.13324 |
| By: | Alvi, Muzna; Sufian, Farha; Singh, Tushar |
| Abstract: | Rural energy access remains a critical challenge in developing economies, with profound implications for agricultural productivity, household welfare, and gender dynamics. Nepal's diverse geographical landscape—spanning the plains of Terai to the challenging Mid-hills and mountain regions—presents a unique context for understanding energy poverty and its multifaceted impacts. This study examines the intricate relationships between energy infrastructure, household economic status, and social outcomes in rural Nepalese communities. By investigating electricity access, cooking fuel technologies, and agricultural mechanization, we reveal how energy transitions are not merely technical interventions but complex social processes that reshape household labor, economic opportunities, and gender relations. Our research highlights the significant disparities in energy access between different geographical regions and wealth quintiles. Beyond infrastructure, we explore how energy technologies interact with dietary diversity, women's empowerment, and agricultural productivity. The findings underscore the need for nuanced, context-specific energy policies that consider local socioeconomic and geographical variations. |
| Keywords: | agricultural productivity; energy consumption; energy sources; household surveys; dietary diversity; women; agricultural mechanization; Nepal; Southern Asia; Asia |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cgiarp:168399 |
| By: | Mohiuddin, Hossain; Fukushige, Tatsuya; Fitch-Polse, Dillon |
| Abstract: | Micromobility options such as electric bike-share and scooter-share services are a fundamental part of the existing shared mobility landscape. Research has shown that micromobility use can reduce car dependence. This is accomplished through trip-level mode replacement and adjustments in mode-use configurations in daily travel. Understanding the full potential of micromobility services as a car replacement can help cities better plan for the services to meet environmental sustainability goals. Researchers at the University of California, Davis collected GPS-based travel diary data from individual micromobility users from 48 cities in the US and examined their travel behavior and micromobility use patterns. They found that micromobility services can displace car use. To achieve environmental sustainability goals, cities must pursue options that will deliver benefits, such as micromobility services. This policy brief summarizes the findings from that research and provides policy implications. View the NCST Project Webpage |
| Keywords: | Social and Behavioral Sciences, Bicycles, micromobility, modal split, scooters, travel surveys, vehicle miles of travel, vehicle sharing |
| Date: | 2025–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:cdl:itsdav:qt91w588s7 |
| By: | Juhro, Solikin M.; Robinson, Irman; Rahadyan, Heru; Rishanty, Arnita |
| Abstract: | Climate change poses major challenges to the global economy and society, requiring coordinated efforts to alleviate its impacts. Given the nature of climate change, the adoption of central bank policies offers a more holistic strategy for managing and mitigating climate risks, thereby bolstering the resilience of the financial system and the economy. This paper aims to explore the critical tasks of coping with climate risks and proposes an integrated central bank climate regulatory framework to foster sustainable economic growth, by exploring the transmission mechanisms of central bank policies to support the establishment of just transition targets. The framework delineates three essential strategies, namely: (i) data, tools, and research, (ii) regulation and supervision, and (iii) climate transition policy. This paper shows that the central bank’s climate policies to manage transition risks can navigate just transition and support the achievement of sustainable economic growth. The operationalization of these strategies extends beyond the traditional purview of central bank activities, necessitating a collaborative and synergistic approach among regulators and industry stakeholders to guide the global economy toward sustainability. |
| Keywords: | climate risks, just transition target, sustainability, sustainable finance, sustainable economic growth, central bank policy. |
| JEL: | O13 Q52 Q54 Q56 Q58 |
| Date: | 2024–12–15 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123324 |
| By: | Georges Prat (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique); Remzi Uctum (EconomiX - EconomiX - UPN - Université Paris Nanterre - CNRS - Centre National de la Recherche Scientifique) |
| Abstract: | This paper contributes to the literature on crude oil risk premiums by providing ex-ante measures of these premiums using survey oil price expectations over an extended period. These ex-ante premiums are uncorrelated with ex-post premiums commonly used in existing studies, whereas they are more relevant as they directly influence investors' decision-making. Utilizing a portfolio choice model, we explain the ex-ante premium as the product of the price of risk and the expected variance, both varying over time and across horizons. We estimate this relationship using a multivariate state-space framework. From our estimated risk prices we find, on average, that investors exhibit risk-seeking behaviour in the short term and risk aversion in the long term. It follows that the term structure of oil risk premiums are prominently upward-sloping. Additionally, consistent with the prospect theory, investors are found to be predominantly risk averse in a context of expected gains and risk-seeking in a context of expected losses. Finally, the dynamics of risk prices are shown to be driven by identifiable economic, financial, and oil market-related factors. |
| Keywords: | Oil price expectations, Ex-ante oil risk premium, Survey data, Prospect theory, D81, G11, Q43 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04873466 |
| By: | Fernando Avalos; Wenqian Huang; Kevin Tracol |
| Abstract: | European futures markets for natural gas and electricity were deeply disrupted by the events following the Russian invasion of Ukraine, including through large fluctuations in margins. The fluctuations in margins put significant liquidity demands on market participants, prompting the official sector to establish liquidity facilities in some jurisdictions. Fluctuations in initial margins were associated with material reductions in open interest of market participants, in line with standard deleveraging mechanisms seen in financial markets. |
| Date: | 2023–09–13 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisblt:77 |
| By: | Sufian, Farha; Alvi, Muzna; Beniwal, Ezaboo |
| Abstract: | Energy use in India plays a critical role in shaping the country’s sustainable development trajectory, particularly in the context of the water-energy-food-environment nexus. As the world’s most populous nation with a rapidly growing economy, India faces significant challenges and opportunities in transitioning to cleaner and more efficient energy systems. The country’s energy access and use portfolio is closely linked to agricultural productivity, household well-being, and environmental sustainability, making it a key area for policy interventions. Access to clean and reliable energy is essential for improving food security, enhancing economic opportunities, and empowering marginalized communities, particularly women. However, India’s energy landscape is diverse, with rural areas heavily reliant on traditional energy sources like firewood and kerosene, while urban regions increasingly adopt modern energy technologies. The energy transition in India needs to go beyond increasing the use of renewable energy to addressing the disparities between regions and income groups to ensure that all households—especially those in rural and underserved areas—gain access to the benefits of cleaner and more efficient energy. This is the declared goal of the CGIAR Initiative on NEXUS Gains, which explores synergies between water, energy, food, and environmental sustainability. By understanding how energy choices are linked to household activities, agricultural practices, and broader socioeconomic outcomes, this analysis contributes to the global discourse on sustainable development and the urgent need for integrated solutions that address the complex interdependence of these sectors. |
| Keywords: | energy consumption; energy sources; Sustainable Development Goals; agricultural productivity; food security; women; gender; household surveys; India; Southern Asia; Asia |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cgiarp:168396 |
| By: | Jean-Baptiste Hasse (Aix Marseille Univ, CNRS, AMSE, Marseille, France); Capucine Nobletz (Banque de France, Institut Louis Bachelier, Paris, France) |
| Abstract: | In this paper, we present a critical raw materials index (CRMI) that represents the price dynamics of the raw materials required for the low-carbon transition. Using a unique market and trade dataset covering 29 critical raw materials from 2012 to 2023, we construct a weekly trade weighted price index following a robust methodological framework. The relevance of our index is demonstrated through a validation process including a plausibility analysis and a comparability analysis. In addition, a sensitivity analysis provides empirical evidence of the robustness of our index to alternative data treatment, weighting factors and weighting schemes. Our framework offers policymakers a useful price benchmark to track the underlying metal market dynamics required by the growing clean energy sectors. |
| Keywords: | Critical Raw Materials Index (CRMI), Energy Transition, Index Construction, Metal prices. |
| JEL: | C43 Q3 Q4 Q54 |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:aim:wpaimx:2428 |
| By: | Anne de Bortoli |
| Abstract: | Despite the ever-growing massive consumption of aggregates, knowledge about their environmental footprint is limited. My literature review on virgin aggregate Life Cycle Assessments (LCA) highlighted many shortcomings, such as low-quality inputs and fragmented system boundaries, and estimated that gravel consumption is responsible for 0.17 to 1.8 percent of the global carbon footprint. I thus developed comprehensive LCAs, based on field data collected from quarries in Quebec producing annually 7 million tons of aggregates, representing different types of rocks, productions (mobile, fixed), and energies consumed, using ecoinvent 3.7 and TRACI characterization method. Results show that the often-forgotten blasting and machinery are major contributors to several impact categories, along with diesel consumption. The link between the nature of the rock and the environmental impacts of aggregates is demonstrated for the first time: the harder it is, the more exposive it requires, thus increasing the impacts. Moreover, the more abrasive the rock is, the faster it wears out machinery, generating higher maintenance that increases human and ecosystem toxicities. A pronounced sensitivity of the impacts to the electricity mix is also shown based on a scenario analysis carried on Europe, China, and different Canadian and American regions. Additionally, aggregate transportation to the consumer, modeled with tailored inventories, can more than double the impact of the aggregate at the gates of the quarry, with strong regional variability. In a near future, I call for considering consistent system boundaries in aggregate LCA, refining blasting, energy consumption, machinery manufacturing and maintenance, as well as customizing truck transportation models, for more reliable aggregate LCAs. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.10457 |
| By: | Baziar, Aliasghar; Askari, Mohammadreza; Taherianfard, Elahe; Heydari, Mohammad Hossein; Niknam, Taher |
| Abstract: | Optimizing energy and water consumption in smart buildings is a critical challenge for enhancing sustainability and reducing operational costs. This paper presents a Cyber-Physical System (CPS) framework that integrates Deep Reinforcement Learning (DRL) and Genetic Algorithms (GA) for real-time decision-making and resource optimization. The system leverages IoT sensors and actuators to monitor and control building systems such as HVAC, lighting, and water management, continuously adjusting parameters to minimize resource consumption while maximizing efficiency. Key findings from the implementation of the DRL + GA framework include up to 20% reductions in energy and water consumption compared to traditional methods. The proposed approach demonstrates significant cost savings and improved system performance, showcasing its effectiveness in real-time optimization. Additionally, the system adapts dynamically to fluctuating conditions such as weather, occupancy, and energy demand. This work contributes to the development of sustainable building management strategies and lays the foundation for smart city applications. The integration of DRL and GA provides a promising solution for optimizing resource allocation and advancing energy efficiency in urban infrastructures. |
| Keywords: | yber-Physical System (CPS), Smart Buildings, Energy Optimization, Water Consumption, Deep Reinforcement Learning (DRL), Genetic Algorithms (GA), Real-Time Decision-Making, Resource Efficiency, Sustainability, IoT Sensors and Actuators |
| JEL: | Q00 Q4 Q40 Q47 Q5 Q56 |
| Date: | 2024–11 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123270 |
| By: | Tommaso Pardi (IDHES - Institutions et Dynamiques Historiques de l'Économie et de la Société - UP1 - Université Paris 1 Panthéon-Sorbonne - UP8 - Université Paris 8 Vincennes-Saint-Denis - UPN - Université Paris Nanterre - UEVE - Université d'Évry-Val-d'Essonne - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay, MSH Paris-Saclay - Maison des Sciences de l'Homme - Paris Saclay - UVSQ - Université de Versailles Saint-Quentin-en-Yvelines - Université Paris-Saclay - CNRS - Centre National de la Recherche Scientifique - ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay, ENS Paris Saclay - Ecole Normale Supérieure Paris-Saclay); Marc Alochet (X - École polytechnique - IP Paris - Institut Polytechnique de Paris); Bernard Jullien (UB - Université de Bordeaux); Samuel Klebaner (CEPN - Centre d'Economie de l'Université Paris Nord - CNRS - Centre National de la Recherche Scientifique - Université Sorbonne Paris Nord) |
| Abstract: | From executive summary (page 6): Why do we need a small, affordable, sustainable electric vehicle (ASEV)? Why do we not have an ASEV in Europe? What can we learn from countries (Japan, China) where such AS(E)V exist? How can we promote a European made ASEV ? 1) Create a sub-M1 category (M1 ASEV) and create a new-M0 category (M0 ASEV) 2) Adjust the CO2 regulation for ASEV and more efficient decarbonisation 3) Introduction of a dedicated financial framework to support production take-off 4) Introduction of a European Eco score for cars: 5) Promotion of a European ASEV toolkit for Member States, regions and cities What would be the impact of ASEV on decarbonisation, just transition and European industry competitiveness? |
| Date: | 2024–10 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04878220 |
| By: | Adhikari, Shisham |
| Abstract: | Successfully transitioning to a low-carbon economy by 2050 necessitates not only technological advancements but also the swift reallocation of the workforce. Existing policies, such as the Inflation Reduction Act (IRA), focus on firm subsidies while overlooking critical labor market coordination frictions. Workers face high entry costs and uncertainty about green job opportunities, while firms hesitate to invest without a reliable labor supply. This creates a coordination problem: workers are reluctant to enter the green sector without job guarantees, and firms delay expansion without sufficient workers. This paper extends the Diamond-Mortensen-Pissarides (DMP) model to incorporate these coordination frictions, calibrating it to U.S. labor market data. By evaluating subsidies targeted at firms, workers, and a combined strategy, the analysis shows that while individual subsidies can achieve the green employment target of 14% by 2030, a combined approach is far more efficient. It aligns incentives, reduces unemployment, and minimizes fiscal costs, highlighting the necessity of addressing coordination frictions to ensure a cost-effective and equitable green transition. |
| Keywords: | Green transition, Policy misalignment, Coordination friction, Unemployment, Fiscal efficiency, Search-match model |
| JEL: | E61 J2 J6 J64 |
| Date: | 2025–01–20 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123479 |
| By: | Harald Mayr; Mateus Souza |
| Abstract: | Without heat metering, households face strong free-riding incentives. Using data from Swiss households, we find that the staggered introduction of submetering reduced heating expenses by 17%, on average. Machine learning techniques reveal highly heterogeneous effects, consistent with coordination failure in larger buildings and strategic exit of free-riders. We find that households are price elastic even when they share a common heating bill. Our results suggest that most households do not exploit the free-riding incentive, especially in smaller buildings. “Schmeduling, ” inattention to the billing regime, and pro-social behavior can explain the low prevalence of free-riding. Nevertheless, submetering is welfare-improving for most buildings. |
| Keywords: | Free-riding, submetering, individual billing, heating energy, tragedy of the commons, welfare |
| JEL: | D61 Q41 Q52 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_629 |
| By: | Dangel, Alexander; Goeschl, Timo |
| Abstract: | This paper studies temporal factors influencing the effectiveness of don't drive appeals (DDAs) which policy-makers use to encourage motorists to voluntarily reduce driving during transitory high pollution episodes. We derive and empirically validate a theoretical framework for DDAs where the desired behavioral response is sensitive to the number of consecutive DDA days and recovery time between episodes. Our analysis of daily traffic ows from automatic traffic counters in Stuttgart, Germany shows that DDAs at best reduce overall car trip demand during pollution events by less than 1% on average, but treatment effects vary. Difference-in-difference event study estimates reveal that DDAs: i) lead to approximately 3% traffic reductions on the first three days of DDAs and taper off in effectiveness during longer episodes, ii) regain effectiveness at the tail end of DDA episodes once local authorities announce when they will be lifted, and iii) only reduce city center traffic following lengthy recovery periods between events. Our findings provide evidence that temporal factors like social norms and intertemporal substitution dynamically affect voluntary short-term pollution mitigation programs. They also confirm prior North American evidence on DDA traffic displacement and limited overall impact in a European setting. |
| Keywords: | pollution mitigation; information-based regulation; voluntary policies; air quality alerts; policy timing; prosocial behavior; transportation choice |
| Date: | 2025–01–29 |
| URL: | https://d.repec.org/n?u=RePEc:awi:wpaper:0760 |
| By: | Bulut, Hamid; Samuel, Robin |
| Abstract: | In the face of climate change, the principles of distributive social justice have become paramount in addressing the implications of resource allocation and the unequal impacts of environmental degradation. Our study explores the relationship between distributive social justice and environmental attitudes among young people in the context of climate change. Using a natural experimental design, we examine how the 2021 European Floods influenced social justice and environmental attitudes. Our results indicate significant shifts in attitudes, particularly regarding social justice, following the flooding. We found a strong and robust relationship between social justice and environmental attitudes. A causal mediation analysis revealed that floods affected environmental attitudes indirectly through social justice attitudes beyond direct effects. Our results emphasise the importance of integrating the principles of justice in addressing climate change and suggest that young people’s perspectives on social justice play a crucial role in shaping environmental policies and responses to climate crises. |
| Date: | 2025–01–21 |
| URL: | https://d.repec.org/n?u=RePEc:osf:socarx:gx4hc |
| By: | Georges Daw (Université Paris-Saclay, Faculté Jean Monnet Droit, Économie, Management, , LED - Laboratoire d'Economie Dionysien - UP8 - Université Paris 8 Vincennes-Saint-Denis) |
| Abstract: | In demand since time immemorial, increasingly used as intermediate consumption and at the heart of energy and digital transitions, mineral substances are vital to the functioning of economies. While all are important, not all are strategic, and even less so, critical (as lithium). The European Union depends on them. Since 2010, the European Commission has produced statistics evaluating a broad and extensible set of criticality sub-indicators integrated in a two-dimensional matrix (Supply Risk, SR, and Economic Importance, EI) and a list of critical substances based on a combination of SR and EI, updated every 3 years. This article takes a closer look at one of these dimensions, namely the EI one. Our proposed dimension, "Economic effect, EE", integrates cost of using raw materials. Articulated in coherence with EI and assessed over the most recent period, it is compared with EI for lithium. EE suggests a systematically higher criticality than EI. Lithium stands out as 4% more critical. The dynamics of its criticality, on the other hand, is non-monotonic, enriching that of EI. The article also numerically illustrates the prospective use of SR, EI and EE. In addition, an up-to-date overview of lithium (markets, uses, production costs, supply, demand, prices, stocks and trade) has been provided, both for the EU and worldwide. |
| Abstract: | Sollicitées depuis la nuit des temps, de plus en plus utilisées comme consommations intermédiaires et au cœur des transitions énergétique et numérique, les substances minérales sont vitales pour le fonctionnement des économies. Si toutes sont importantes, toutes ne sont pas stratégiques, et encore moins critiques (comme le lithium). L'Union européenne en dépend. Depuis 2010, la Commission européenne produit des statistiques évaluant un ensemble large et extensible de sous-indicateurs de criticité intégrés dans une matrice bidimensionnelle (risque d'approvisionnement, RS, et importance économique, IE) et une liste de substances critiques basée sur une combinaison de RS et d'IE, mise à jour tous les 3 ans. Cet article examine de plus près l'une de ces dimensions, à savoir celle de l'IE. La dimension que nous proposons, « Effet économique, EE », intègre le coût d'utilisation des matières premières. Articulée en cohérence avec l'IE et évaluée sur la période la plus récente, elle est comparée à l'IE pour le lithium. L'EE suggère une criticité systématiquement plus élevée que l'IE. Le lithium se distingue par une criticité supérieure de 4 %. La dynamique de sa criticité, en revanche, est non-monotone, enrichissant celle de l'IE. L'article illustre également numériquement l'utilisation prospective de SR, EI et EE. En outre, un aperçu actualisé du lithium (marchés, utilisations, coûts de production, offre, demande, prix, stocks et commerce) a été fourni, tant pour l'UE que pour le monde. |
| Keywords: | JEL classification: A10 A12 F52 F60 N54 Q31 Q32 Raw materials criticality Lithium European Commission's criticality assessments Supply risk Economic importance Economic effect |
| Date: | 2025–02 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04872358 |
| By: | Jaecheol Lee; Andrew J. Wilson; Solomon M. Hsiang |
| Abstract: | Particulate matter (PM) is a major, clinically important air pollutant. A large portion of emitted PM crosses borders, damaging health outside of its originating jurisdiction, but due in part to technical obstacles these pollutant flows remain unregulated. Proposed attribution approaches assume that units of PM originating in different jurisdictions cause the same harm, despite a widespread understanding that differing chemical and physical features of PM could generate distinct health effects. We use an atmospheric model to decompose the origins of PM individuals are exposed to at each location in South Korea, the nexus of one of the world's most contentious transboundary air pollution disputes, every day during 2005–2016. We then link these data to universal healthcare records in an econometric analysis that simultaneously measures and accounts for harms from seven types of PM, each from a distinct origin. We discover that the health harm of a unit of transboundary PM is approximately 5× (North Korea) and 2.6× (China) greater than a unit of PM originating within South Korea, and that health responses to PM from natural sources differs from those to anthropogenic sources. Because harms differ by origin, we compute that transboundary sources contribute only 43% of anthropogenic PM exposure in South Korea but generate over 70% of its associated respiratory health costs. Our results suggest that PM should be treated as a mixture of distinct pollutants, each with a unique measurable impact on human health. |
| JEL: | C80 F18 H51 H79 H87 I1 I18 Q52 Q53 R11 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33379 |
| By: | Panle Jia Barwick; Hyuk-Soo Kwon; Shanjun Li; Nahim B. Zahur |
| Abstract: | Electric vehicle (EV) battery costs have declined by more than 90% over the past decade. This study investigates the role of learning-by-doing (LBD) in driving this reduction and its interaction with two major government policies – consumer EV subsidies and local content requirements. Leveraging rich data on EV models and battery suppliers, we develop and estimate a structural model of the global EV industry that incorporates heterogeneous consumer choices and strategic pricing behaviors of EV producers and battery suppliers. The model allows us to recover battery costs for each EV model and quantify the extent of LBD in battery production. The learning rate is estimated to be 7.5% during our sample period after controlling for industry technological progress, economies of scale, input costs, and EV assembly experience. LBD magnifies the effectiveness of consumer EV subsidies and drives cross-country spillovers from these subsidies. Upstream battery suppliers capture only a minor share of LBD’s economic benefits, and consumer EV subsidies correct for the under-provision of learning and improve social welfare. China’s local content requirement helps domestic suppliers gain a competitive advantage at the cost of consumers and foreign suppliers but would have harmed domestic welfare if delayed by five years. |
| JEL: | F13 L0 L52 L62 Q48 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33378 |
| By: | Fernando Avalos; Ryan Niladri Banerjee; Matthias Burgert; Boris Hofmann; Cristina Manea; Matthias Rottner |
| Abstract: | Major price increases in energy and food were key drivers of the 2021–22 inflation surge. These large supply-driven commodity price increases, occurring when inflation was already elevated in many countries, increased the risk of moving to a high-inflation regime. Central banks have tended to look through commodity price fluctuations due to their often transitory nature and the implied trade-off between inflation and output stabilisation in the case of supply-driven price shocks. Growing geopolitical disruptions, climate change and a bumpy transition to green energy threaten to make commodity price shifts larger and more frequent going forward. This potentially raises greater risks for price stability, thereby limiting the scope for monetary policy to look through them. |
| Date: | 2025–01–08 |
| URL: | https://d.repec.org/n?u=RePEc:bis:bisblt:96 |
| By: | Clare A. Balboni; Joseph S. Shapiro |
| Abstract: | How do environmental goods and policies shape spatial patterns of economic activity? How will climate change modify these impacts over the coming decades? How do agglomeration, commuting, and other spatial forces and policies affect environmental quality? We distill theoretical and empirical research linking urban, regional, and spatial economics to the environment. We present stylized facts on spatial environmental economics, describe insights from canonical environmental models and spatial models, and discuss the building blocks for papers and the research frontier in enviro-spatial economics. Most enviro-spatial research remains bifurcated into either primarily environmental or spatial papers. Research is only beginning to realize potential insights from more closely combining spatial and environmental approaches. |
| JEL: | F18 F64 H23 J61 O18 Q50 R11 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:nbr:nberwo:33377 |
| By: | Takeshima, Hiroyuki; Yamauchi, Futoshi; Dauda, Bawa; Balana, Bedru |
| Abstract: | Modern cooling technologies, including cold storage, have been considered one of the critical tools to address increasingly complex challenges in agrifood systems in developing countries, including poverty, economic growth, food loss and waste, food and nutrition security, and environmental sustainability (e.g., IFPRI 2020; Kashyap & Agarwal 2020). Cold storage can minimize most human pathogens, ensuring enhanced food safety (Uçar & Özçelik 2013; Kopp & Mishra 2022) and contribute to increased consumption of micronutrient-rich horticulture crops (Schreinemachers et al. 2018). Cooling technologies can also improve market functions by enabling higher and more stable prices received by suppliers (Rakshit 2011; Schreinemachers et al. 2018) and reducing losses (Allen & de Brauw 2018). Cooling-chain development has been a significant part of food system transformation outside Africa South of the Sahara (SSA) (IFPRI 2020). Similar technologies may become more broadly relevant in SSA in the near future (Tschirley et al. 2015). Traditionally, the use of cold storage has been constrained by high energy consumption and adverse environmental effects like carbon emissions (Pueyo et al. 2020; Steyn et al. 2016). However, a growing set of potential energy solutions are being proposed and introduced on a pilot basis, including solar power (Takeshima et al. 2023). |
| Keywords: | agrifood systems; agricultural technology; capacity development; cold storage; cooling; horticulture |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cgiarp:163560 |
| By: | Taherianfard, Elahe; Heydari, Mohammad Hossein; Niknam, Taher; Baziar, Aliasghar; Askari, Mohammadreza |
| Abstract: | This study explores the integration of Variational Autoencoders (VAEs) and Genetic Programming (GP) to address key challenges in the development of smart cities as cyber-physical systems (CPS). The primary objective is to enhance decision-making processes, optimize resource allocation, and improve energy management within urban infrastructures. VAEs are employed for dimensionality reduction and feature extraction, enabling efficient processing of large-scale urban data, while GP is utilized for optimization, ensuring the effective configuration and management of smart city systems. The proposed framework is evaluated across various metrics, including energy consumption, system resilience, and traffic flow optimization. The results demonstrate substantial improvements over traditional methods, highlighting the potential of the VAEs + GP combination in tackling complex CPS challenges. This approach not only contributes to the advancement of smart city technologies but also offers a scalable and adaptive solution to the evolving demands of urban environments. Overall, the study showcases the transformative potential of combining deep learning and evolutionary algorithms to build sustainable and intelligent smart cities. |
| Keywords: | Smart Cities, Cyber-Physical Systems (CPS), Variational Autoencoders (VAEs), Genetic Programming (GP), Resource Allocation, Energy Management, Dimensionality Reduction, Optimization Algorithms, Urban Data Processing, Intelligent Systems |
| JEL: | Q0 Q4 Q41 R0 |
| Date: | 2024–12 |
| URL: | https://d.repec.org/n?u=RePEc:pra:mprapa:123271 |
| By: | Gaël Giraud (CES - Centre d'économie de la Sorbonne - UP1 - Université Paris 1 Panthéon-Sorbonne - CNRS - Centre National de la Recherche Scientifique); Paul Valcke (GEJP - Georgetown Environmental Justice Program [Washington] - GU - Georgetown University [Washington]) |
| Abstract: | Abstract Designing policy for global warming requires an integrated analysis of the interplay between the economy and the environment. The consensus is growing that, despite their dominance in the economics literature and their influence in public discussion and policymaking, the methodology employed so far by most Integrated Assessment Models (iams) ‘rests on flawed foundations' (Stiglitz et al. 2016). This is particularly worrisome in the face of the immense risks and challenges of global warming and the radical changes in our economies that an effective response requires. This paper introduces an alternative paradigm, IDEE (Integrated Dynamics Environment-Economy), based on coupling a medium-size climate model with nonlinear, out-of-equilibrium, stock-flow-consistent macroeconomic dynamics in continuous time. IDEE allows for multiple economic steady states, endogeneous business cycles, endogenous growth, corporate default, and the short- and long-run assessment of various mitigation and adaptation policies. We argue that this approach is suitable for providing insights into managing the transition to net-zero emissions and coping with damages induced by the ecological crisis. |
| Abstract: | L'élaboration d'une politique de lutte contre le réchauffement climatique nécessite une analyse intégrée de l'interaction entre l'économie et l'environnement. Il est de plus en plus admis que, malgré leur domination dans la littérature économique et leur influence dans le débat public et l'élaboration des politiques, la méthodologie employée jusqu'à présent par la plupart des modèles d'évaluation intégrée (MEI) « repose sur des bases erronées » (Stiglitz et al. 2016). Ceci est particulièrement inquiétant face aux risques et défis immenses du réchauffement climatique et aux changements radicaux de nos économies qu'une réponse efficace requiert. Cet article présente un paradigme alternatif, IDEE (Integrated Dynamics Environment-Economy), basé sur le couplage d'un modèle climatique de taille moyenne avec une dynamique macroéconomique non linéaire, hors équilibre, cohérente avec les flux de stocks en temps continu. IDEE permet des états stables économiques multiples, des cycles économiques endogènes, une croissance endogène, des défaillances d'entreprises et l'évaluation à court et à long terme de diverses politiques d'atténuation et d'adaptation. Nous soutenons que cette approche est adaptée à la gestion de la transition vers des émissions nettes nulles et à la gestion des dommages induits par la crise écologique. |
| Keywords: | climate change, extreme risk, market imperfections, climate policy, integrated assessment, stock-flow consistency |
| Date: | 2023–02–01 |
| URL: | https://d.repec.org/n?u=RePEc:hal:journl:hal-04872596 |
| By: | Emilio Barucci; Daniele Marazzina; Aldo Nassigh |
| Abstract: | We explore the interplay between sovereign debt default/renegotiation and environmental factors (e.g., pollution from land use, natural resource exploitation). Pollution contributes to the likelihood of natural disasters and influences economic growth rates. The country can default on its debt at any time while also deciding whether to invest in pollution abatement. The framework provides insights into the credit spreads of sovereign bonds and explains the observed relationship between bond spread and a country's climate vulnerability. Through calibration for developing and low-income countries, we demonstrate that there is limited incentive for these countries to address climate risk, and the sensitivity of bond spreads to climate vulnerability remains modest. Climate risk does not play a relevant role on the decision to default on sovereign debt. Financial support for climate abatement expenditures can effectively foster climate adaptation actions, instead renegotiation conditional upon pollution abatement does not produce any effect. |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:arx:papers:2501.11552 |
| By: | Sufian, Farha; Alvi, Muzna; Raja, Sehrish |
| Abstract: | Rural energy access remains a critical challenge in developing economies, with profound implications for agricultural productivity, household welfare, and gender dynamics. Pakistan's economy depends heavily on agriculture, which accounts for 20 percent of its gross domestic product and employs 42 percent of workers. Most farmers are small landholders who struggle with limited energy access and unreliable irrigation. Rain-dependent farming leaves these farmers vulnerable to weather changes, hindering their ability to improve agricultural productivity and resilience through modern agricultural technology. Furthermore, in Pakistan limited access to energy within the household and reliance on traditional cooking methods not only constrain productivity but also directly affect dietary quality for families, especially in low-income and agrarian communities. Women, who traditionally manage household nutrition and often bear the burden of energy-intensive food preparation, are particularly vulnerable to these energy constraints. This policy note examines the rural energy portfolio in Rahim Yar Khan (RYK), in the Punjab province of Pakistan, and its association with household well-being outcomes. The energy portfolio in rural RYK is diverse, with households relying on a combination of traditional and modern sources of energy. This analysis aims to explore how on- and off-farm energy choices impact key aspects of household well-being, including women’s dietary diversity, agency in energy choices, and workload. The findings offer valuable insights for policymakers seeking to promote sustainable energy solutions that enhance household welfare in rural Pakistan. |
| Keywords: | household surveys; energy consumption; rural areas; agriculture; women; dietary diversity; nutrition; energy sources; Pakistan; Southern Asia; Asia |
| Date: | 2024 |
| URL: | https://d.repec.org/n?u=RePEc:fpr:cgiarp:168398 |
| By: | José Alberto Fuinhas (Faculty of Economics, and Centre for Business and Economics Research (CeBER), University of Coimbra); Asif Javed (School of Advanced Studies, University of G. D'Annunzio Chieti-Pescara); Dario Sciulli (Department of Economic Studies, University of G. D'Annunzio Chieti-Pescara); Edilio Valentini (Department of Economic Studies, University of G. D'Annunzio Chieti-Pescara) |
| Abstract: | Governments across the globe are implementing stricter environmental policies to combat climate change and promote sustainability. This study contributes to the growing literature exploring the influence of environmental policy on skill-biased employment across various occupations. Specifically, we examine the causal effect of the revised version of Environmental Policy Stringency Index (EPS) and its components on skill-biased employment, focusing on occupations such as managers, professionals, technicians, and manual workers across 21 European economies from 2008 to 2020. Using the Method of Moments Quantile Regression (MMQR), the findings reveal that stringent environmental policies affect employment shares across different occupational categories. Skilled workers tend to benefit more from such policies, with a notable increase in the employment of professionals across all policy measures and a more differentiated impact among technicians and managers. In contrast, manual workers are generally adversely affected by environmental policies. These asymmetric effects on occupations exacerbate labour market inequalities, including disparities in employment levels and potential earnings. This research highlights the importance of designing tailored policies to mitigate adverse labour market outcomes while facilitating a transition to sustainable economic practices. |
| Keywords: | Environmental policy stringency, Skilled workers, Employment, Method of Moments Quantile Regression |
| JEL: | Q58 J24 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:fem:femwpa:2025.02 |
| By: | Ñancupil, Ignacio; Gil, Marina; Poveda Bonilla, Rafael |
| Abstract: | El cambio climático y la emisión de gases de efecto invernadero son problemas mundiales, en que los sectores de la energía y el transporte son grandes contribuyentes. En la región, el transporte consume el 37% de la energía, principalmente de fuentes fósiles. Para reducir las emisiones, es necesario avanzar en el uso de fuentes de energía primaria renovables y modificar los patrones de consumo basados en combustibles fósiles, por ejemplo, mediante el uso de vehículos eléctricos en el transporte público y privado. Esto implica un aumento significativo de la demanda eléctrica y requiere una planificación adecuada de las redes eléctricas para evitar congestión y falta de capacidad de transmisión. En este estudio, en la provincia de San José (Costa Rica), se evaluaron los impactos y las necesidades de inversión para la electromovilidad, considerando tres escenarios de integración. Los resultados mostraron que se necesitará un aumento del 12, 7% en inversiones de generación y transmisión respecto de las inversiones estimadas previamente por el Instituto Costarricense de Electricidad (ICE) para cumplir las metas del Plan Nacional de Descarbonización del país a 2030. Además, se requerirán inversiones anuales del 0, 35% del PIB hasta 2030 para adquirir buses eléctricos y expandir la infraestructura para la electromovilidad. |
| Date: | 2024–11–18 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80955 |
| By: | Somers, Melline (RS: GSBE other - not theme-related research, ROA / Health, skills and inequality) |
| Abstract: | This study explores how elements of the German dual system can inspire improvements in the Dutch vocational education and training (VET) system, aiming to address key challenges and meet the ambitions of Dutch VET stakeholders. Skilled VET graduates are crucial to meet workforce demands in sectors such as healthcare, education, and construction, and to support the energy transition. However, the Netherlands faces significant labour shortages in these fields, exacerbated by a declining interest in vocational pathways as more students opt for academic routes. Through 23 interviews with experts from the German and Dutch education systems, along with a review of relevant literature, this study identifies nine recommendations to enhance the Dutch VET system. The findings suggest strategies to increase the attractiveness of vocational education, improve the quality of company-based training, and optimise the funding structure for in-company training. |
| Date: | 2025–01–24 |
| URL: | https://d.repec.org/n?u=RePEc:unm:umarep:2025002 |
| By: | Julio Saavedra |
| Abstract: | AbstractThe European Union faces several simultaneous threats to its competitiveness: weakness in the industries of the future, insufficient innovation, expensive energy, the need to green its economy, and geopolitical and trade shifts, to name but a few. The EconPol Europe Annual Conference, on whose proceedings this policy brief is based, focused on three aspects that could make a substantial contribution to securing prosperity in the EU, but are in a lamentable state: they all currently fall far short of their potential. These are the power of the single market, the level of its innovation, and the capacity to defend itself. Both the high-level speakers at the conference as well as EconPol and ifo research make clear that some low-hanging fruit are there for the taking, if only the political will were there, a good dose of national chauvinism could be overcome, and an effective communication campaign were undertaken to explain to voters why some measures are not only necessary, but unavoidable. Key MessagesTo secure its future prosperity, Europe needs to tackle three principal challenges to its competitiveness: leveraging the power of its single market, improving its level of innovation, and building the capacity to defend itself.Policy measures to reduce non-tariff barriers for the EU’s trade in services should include the EU-wide standardization of qualifications, and the digitalization of public administrations and services.To boost growth by fostering disruptive technologies, EU innovation policy should be technology-neutral, competitively awarded, and designed to lever-age the powers of public procurement and of the EU single market. Maintaining peace by preparing for war must be the guiding principle when it comes to European defense policy. The EU must create a single market for defense and implement a collectively borrowed fund, similar to the €750 billion COVID recovery fund. |
| Date: | 2025 |
| URL: | https://d.repec.org/n?u=RePEc:ces:econpb:_68 |
| By: | Pica-Téllez, Andrés; Cid, Francisca; Ferrer, Jimy; Valdés, Orietta; Peralta, Carlos; Contreras, Rodrigo; Henríquez, Rodrigo |
| Abstract: | En este documento se presenta la estimación de la actualización del precio social del carbono para Chile, como resultado de la asistencia técnica prestada por la División de Desarrollo Sostenible y Asentamientos Humanos de la Comisión Económica para América Latina y el Caribe (CEPAL) a la División de Evaluación Social de Inversiones del Ministerio de Desarrollo Social y Familia. Se incluye un examen de los compromisos que el país planteó en sus contribuciones determinadas a nivel nacional (CDN) y en la Estrategia Climática de Largo Plazo de Chile a 2050. Se presentan alternativas metodológicas para calcular el precio social del carbono, así como los requerimientos de información para aplicarlas. Considerando la disponibilidad de información en Chile, es posible aplicar las tres metodologías consideradas. Según los resultados obtenidos con la metodología de costo de mitigación, para alcanzar un objetivo de política pública se recomienda utilizar los siguientes valores del precio social del carbono: 63, 4 dólares por tonelada de dióxido de carbono equivalente (tCO2e) en 2024, 71, 1 dólares por tCO2e en 2025 y 109, 7 dólares por tCO2e en 2030. Se presentan los resultados de cada uno de los métodos y se hacen análisis de sensibilidad para distintas tasas sociales de descuento. |
| Date: | 2024–11–22 |
| URL: | https://d.repec.org/n?u=RePEc:ecr:col022:80999 |
| By: | Arthur Seibold; Sebastian Seitz; Sebastian Siegloch |
| Abstract: | Public disability insurance (DI) programs in many countries are under pressure to reduce spending to maintain fiscal sustainability. In this paper, we investigate the welfare effects of expanding the role of private insurance markets in the face of public DI cuts. We exploit a reform that abolished one part of German public DI and use unique data from a larger insurer. We document modest crowding-out effects of the reform, such that private DI take-up remains incomplete. We find no adverse selection in the private DI market. Instead, private DI tends to attract individuals with high income, high education, and low disability risk. Using a revealed preference approach, we estimate individual insurance valuations. Our welfare analysis finds that partial DI provision via the voluntary private market can improve welfare. However, distributional concerns may justify a full public DI mandate. |
| Keywords: | disability insurance, social insurance, mandate, privatization, risk-based selection, welfare |
| JEL: | H55 G22 G52 |
| Date: | 2025–01 |
| URL: | https://d.repec.org/n?u=RePEc:bon:boncrc:crctr224_2025_640 |