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on Regulation |
| By: | Kenneth Gillingham; Marten Ovaere; Stephanie M. Weber |
| Abstract: | Will a carbon tax improve the welfare consequences of policies to promote electric vehicles? This paper examines when a complementarity could exist between carbon pricing and high electric vehicle adoption. We analyze electricity generation in recent years to show that in several regions, carbon pricing interacts with electric vehicle adoption. Under moderate carbon prices like those in effect today, additional electric vehicles will be more likely to be charged with coal-fired generation than without carbon pricing. We confirm this finding using a detailed dynamic model that includes the transportation and power sectors. At much higher carbon prices, the effect reverses. |
| JEL: | H23 Q48 Q53 Q54 Q58 R48 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28620&r=all |
| By: | Ryan Rafaty (Nuffield College, University of Oxford); Geoffroy Dolphin (Judge Business School, University of Cambridge); Felix Pretis (Nuffield College, University of Oxford) |
| Abstract: | We study the impact of carbon pricing on CO2 emissions across five sectors for a panel of 39 countries over 1990-2016. Using newly constructed sector-level carbon price data, we implement a novel approach to estimate the changes in CO2 emissions associated with (i) the introduction of carbon pricing regardless of the price level; (ii) the implementation effect as a function of the price level; and (iii) post-implementation marginal changes in the CO2 price. We find that the introduction of carbon pricing has reduced growth in CO2 emissions by 1% to 2.5% on average relative to counterfactual emissions, with most abatement occurring in the electricity and heat sector. Exploiting variation in carbon pricing to explain heterogeneity in treatment effects, we find an imprecisely estimated semi-elasticity of a 0.05% reduction in emissions growth per average $1/metric ton (hereafter abbreviated as: ton) of CO2. After the carbon price has been implemented, each marginal price increase of $1/tCO2 has temporarily lowered the growth rate of CO2 emissions by around 0.01%. These are disappointingly small effects. Simulating potential future emissions reductions in response to carbon price paths, we conclude that – in the absence of complementary non-pricing policy interventions – carbon pricing alone is unlikely to be sufficient to achieve emission reductions consistent with the Paris climate agreement. |
| Keywords: | Carbon Pricing, CO2 Emissions, Decarbonization, Carbon Tax, Climate Change, Climate Policy. |
| JEL: | Q43 Q48 Q54 Q58 H23 |
| Date: | 2020–10–21 |
| URL: | http://d.repec.org/n?u=RePEc:thk:wpaper:inetwp140&r=all |
| By: | Zhu Liu; Biqing Zhu; Philippe Ciais; Steven J. Davis; Chenxi Lu; Haiwang Zhong; Piyu Ke; Yanan Cui; Zhu Deng; Duo Cui; Taochun Sun; Xinyu Dou; Jianguang Tan; Rui Guo; Bo Zheng; Katsumasa Tanaka; Wenli Zhao; Pierre Gentine |
| Abstract: | The COVID-19 pandemic has disrupted human activities, leading to unprecedented decreases in both global energy demand and GHG emissions. Yet a little known that there is also a low carbon shift of the global energy system in 2020. Here, using the near-real-time data on energy-related GHG emissions from 30 countries (about 70% of global power generation), we show that the pandemic caused an unprecedented de-carbonization of global power system, representing by a dramatic decrease in the carbon intensity of power sector that reached a historical low of 414.9 tCO2eq/GWh in 2020. Moreover, the share of energy derived from renewable and low-carbon sources (nuclear, hydro-energy, wind, solar, geothermal, and biomass) exceeded that from coal and oil for the first time in history in May of 2020. The decrease in global net energy demand (-1.3% in the first half of 2020 relative to the average of the period in 2016-2019) masks a large down-regulation of fossil-fuel-burning power plants supply (-6.1%) coincident with a surge of low-carbon sources (+6.2%). Concomitant changes in the diurnal cycle of electricity demand also favored low-carbon generators, including a flattening of the morning ramp, a lower midday peak, and delays in both the morning and midday load peaks in most countries. However, emission intensities in the power sector have since rebounded in many countries, and a key question for climate mitigation is thus to what extent countries can achieve and maintain lower, pandemic-level carbon intensities of electricity as part of a green recovery. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2102.03240&r=all |
| By: | Mathias Reynaert (TSE - Toulouse School of Economics - UT1 - Université Toulouse 1 Capitole - EHESS - École des hautes études en sciences sociales - CNRS - Centre National de la Recherche Scientifique - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement); James M. Sallee (Unknown) |
| Abstract: | Firms sometimes comply with externality-correcting policies by gaming the measure that determines policy. This harms buyers by eroding information, but it benefits them when cost savings are passed through into prices. We develop a model that highlights this tension and use it to analyze gaming of automobile carbon emission ratings in the EU. We document startling increases in gaming using novel data. We then analyze the effects of gaming in calibrated simulations. Over a wide range of parameters, we find that pass through substantially outweighs information distortions; on net, buyers benefit from gaming, even when they are fooled by it. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:hal:journl:hal-03167777&r=all |
| By: | Cedic, Samir; Mahmoud, Alwan; Manera, Matteo; Uddin, Gazi Salah |
| Abstract: | The aim of this paper is to analyze the connectedness between renewable energy (RE) sectors, the oil & gas sector and other assets using time-scale spillover approach. We find that the RE bioenergy firms are the most connected to oil & gas firms and oil prices. The bond market transmits spillover to the RE sectors, while it receives spillover from the oil & gas sector. Moreover, short-run connectedness drives the dynamic total connectedness. Since changes in bond rates mainly spillover to RE firms and not to oil & gas firms, policy makers should also be aware that changes in interest rates may impact the societal transition to a RE based energy system. Since a shock that increases connectedness in the short run will deter investors from investing in RE assets, it is important for climate policy makers to develop policies that reduce the effect of increased connectedness on RE investments. |
| Keywords: | Resource /Energy Economics and Policy |
| Date: | 2021–04–06 |
| URL: | http://d.repec.org/n?u=RePEc:ags:feemwp:310361&r=all |
| By: | Ricardo Gonçalves (Católica Porto Business School, Universidade Católica Portuguesa); Flávio Menezes (School of Economics, University of Queensland, Brisbane, Australia) |
| Abstract: | This paper estimates the market-wide impact of renewables on Australias National Electric- ityMarket (NEM) wholesale prices from 2009 to 2020. The goal is to understand the medium-run impact of renewable generation, as opposed to the short-run impact of weather-driven changes in renewable output. The focus is, therefore, on the relationship between renewable generation (and its growth) and wholesale prices over a long period of time. In particular, we exploit the half-hourly nature of wholesale price setting in the NEM to uncover the impact of solar and wind daily production on the distribution of prices during the day. In contrast to the literature that focuses on the short-run impact of renewables, our results suggest that the daily solar production has a positive, although not always signi cant, impact on wholesale prices throughout the day during an early development stage of solar generation. The results for wind are more in line with the existing literature: the daily production of wind has a small, negative impact on wholesale prices for most of the day. These results are consistent with optimization studies that show that the least-cost generation mix favours wind generation over solar. The reason for this is that the production of solar is highly self-correlated, since it is available during daylight hours, whereas wind generation exhibits less correlation, and therefore is subject to more geographical smoothing. |
| Keywords: | renewables, energy-only markets, prices. |
| JEL: | D4 L9 |
| Date: | 2021–03–26 |
| URL: | http://d.repec.org/n?u=RePEc:qld:uq2004:640&r=all |
| By: | Edward Oughton |
| Abstract: | Internet access is essential for economic development and helping to deliver the Sustainable Development Goals, especially as even basic broadband can revolutionize available economic opportunities. Yet, more than one billion people still live without internet access. Governments must make strategic choices to connect these citizens, but currently have few independent, transparent and scientifically reproducible assessments to rely on. This paper develops open-source software to test broadband universal service strategies which meet the 10 Mbps target being considered by the UN Broadband Commission. The private and government costs of different infrastructure decisions are quantified in six East and West African countries (C\^ote D`Ivoire, Mali, Senegal, Kenya, Tanzania and Uganda). The results provide strong evidence that `leapfrogging` straight to 4G in unconnected areas is the least-cost option for providing broadband universal service, with savings between 13-51% over 3G. The results also demonstrate how the extraction of spectrum and tax revenues in unviable markets provide no net benefit, as for every $1 taken in revenue, a $1 infrastructure subsidy is required from government to achieve broadband universal service. Importantly, the use of a Shared Rural Network in unviable locations provides impressive cost savings (up to 78%), while retaining the benefits of dynamic infrastructure competition in viable urban and suburban areas. This paper provides evidence to design national and international policies aimed at broadband universal service. |
| Date: | 2021–02 |
| URL: | http://d.repec.org/n?u=RePEc:arx:papers:2102.03561&r=all |
| By: | Haraguchi, Junichi; Matsumura, Toshihiro |
| Abstract: | Mixed oligopolies are characterized by the coexistence of private and public enterprises. The literature on mixed oligopolies indicates that, assuming all private firms are identical, the optimal degree of privatization increases with the number of private firms. In other words, the more concentrated the market is, the more the government should privatize public firms. We revisit this problem by introducing cost-heterogeneity among private firms. We show that under the assumption of constant marginal costs, a new entry by a private firm will not reduce the optimal degree of privatization, regardless of the cost differences among private firms. However, under the assumption of increasing marginal costs, we show that a new entry will reduce the optimal degree of privatization when the new entrant is significantly less efficient than the private firms already present. Our results imply that the relationship between competition and privatization policies are more complicated than the literature suggests, and they depend on the cost structure of private firms. |
| Keywords: | privatization and competition policies, market concentration index, partial privatization, new entry, production substitution |
| JEL: | D43 H44 L33 |
| Date: | 2021–04–03 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:106975&r=all |
| By: | Andres Gonzalez-Lira; Ahmed Mushfiq Mobarak |
| Abstract: | Attempts to curb undesired behavior through regulation gets complicated when agents can adapt to circumvent enforcement. We test a model of enforcement with learning and adaptation, by auditing vendors selling illegal fish in Chile in a randomized controlled trial, and tracking them daily using mystery shoppers. Conducting audits on a predictable schedule and (counter-intuitively) at high frequency is less effective, as agents learn to take advantage of loopholes. A consumer information campaign proves to be almost as cost-effective and curbing illegal sales, and obviates the need for complex monitoring and policing. The Chilean government subsequently chooses to scale up this campaign. |
| JEL: | K42 L51 O1 |
| Date: | 2021–03 |
| URL: | http://d.repec.org/n?u=RePEc:nbr:nberwo:28610&r=all |
| By: | Chepeliev, Maksym; Israel Osorio Rodarte; Dominique van der Mensbrugghe |
| Abstract: | While bringing multiple benefits for the environment, achievement of the stringent global greenhouse gas emissions reduction target, like the one outlined in the Paris Climate Agreement, is associated with significant implementation costs and could impact different dimensions of human well-being, including welfare, poverty and distributional aspects. In this paper, we analyze the poverty and distributional impacts of different carbon pricing mechanisms consistent with reaching the Paris Agreement targets. We link a global recursive dynamic computable general equilibrium model ENVISAGE with the GIDD microsimulation model and explore three levels of mitigation effort and five carbon pricing options (trade coalitions). Results suggest that while there is a higher incidence of poverty in all scenarios, mainly driven by lower economic growth, Nationally Determined Contribution (NDC) policies result in progressive income distribution at the global level. Such progressivity is caused not only by lower relative prices of food versus non-food commodities, but also by a general decline in skill wage premia. |
| Date: | 2021 |
| URL: | http://d.repec.org/n?u=RePEc:gta:workpp:6194&r=all |
| By: | Taiwo, Kayode |
| Abstract: | Decentralisation promises efficiency gain and improved access to public goods and services, especially at the local level. Under decentralised governance arrangement, regional and environmental peculiarities are given prominent consideration in delivering public goods and services. Given the impact of the environment in influencing sanitation and water services, particularly water provision, this study examines the effect of decentralisation, as measured by revenue share and expenditure share, on improved access to sanitation and water services. Exploiting the variation in improved access to sanitation facilities and water sources using a static panel data estimator, this study’s empirical results suggest a positive impact of decentralisation on the improved access to sanitation and water services. The positive effect is larger in rural areas vis-à-vis the country level and urban areas. The study reveals that wealth and institutional factors are also important to improve access to sanitation and water services. |
| Keywords: | Decentralisation, Subnational government, Sanitation, Water, Panel data |
| JEL: | H77 O18 |
| Date: | 2020–12 |
| URL: | http://d.repec.org/n?u=RePEc:pra:mprapa:105426&r=all |
| By: | Broughel, James (Mercury Publication) |
| Abstract: | Abstract not available. |
| Date: | 2019–07–01 |
| URL: | http://d.repec.org/n?u=RePEc:ajw:wpaper:10167&r=all |
| By: | Fullenbaum, Richard; Richards, Tyler (Mercury Publication) |
| Abstract: | Abstract not available. |
| Date: | 2020–09–09 |
| URL: | http://d.repec.org/n?u=RePEc:ajw:wpaper:10308&r=all |