Energy EconomicsPub Date : 2025-04-09DOI: 10.1016/j.eneco.2025.108482
Aftab Chowdhury, Huw Dixon
{"title":"Energy expenditures and CPI inflation in 2022: Inflation was even higher than we thought","authors":"Aftab Chowdhury, Huw Dixon","doi":"10.1016/j.eneco.2025.108482","DOIUrl":"10.1016/j.eneco.2025.108482","url":null,"abstract":"<div><div>Following the sudden increase in the energy price in the second quarter of 2022 caused by the Russia-Ukraine war, inelastic demand generated significant changes in household expenditure shares for energy (particularly in electricity, gas, and other fuels and in fuels and lubricants). These produced a significant downward bias in the official CPI inflation rate for energy and in the official CPI inflation rate for all items in the UK. The downward bias was significantly higher in the European Union in 2022, specifically in Belgium, Estonia, Ireland, Greece, Italy, Cyprus, Lithuania, the Netherlands, Romania, and Slovenia.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108482"},"PeriodicalIF":13.6,"publicationDate":"2025-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143834088","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-09DOI: 10.1016/j.eneco.2025.108459
Michele Azzone, Roberto Baviera, Pietro Manzoni
{"title":"The puzzle of Carbon Allowance spread","authors":"Michele Azzone, Roberto Baviera, Pietro Manzoni","doi":"10.1016/j.eneco.2025.108459","DOIUrl":"https://doi.org/10.1016/j.eneco.2025.108459","url":null,"abstract":"A growing number of contributions in the literature have identified a puzzle in the European carbon allowance (EUA) market. Specifically, a persistent cost-of-carry spread (C-spread) over the risk-free rate has been observed. We are the first to explain the anomalous C-spread with the credit spread of the corporates involved in the emission trading scheme. We obtain statistical evidence that the C-spread is cointegrated with both this credit spread and the risk-free interest rate. This finding has a relevant policy implication: the most effective solution to solve the market anomaly is including the EUA in the list of European Central Bank eligible collateral for refinancing operations. This change in the ECB monetary policy operations would greatly benefit the carbon market and the EU green transition.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"30 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2025-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143849386","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-09DOI: 10.1016/j.eneco.2025.108410
Yi-Fan Chen
{"title":"Cap-and-trade system, firm selection, and emission intensity","authors":"Yi-Fan Chen","doi":"10.1016/j.eneco.2025.108410","DOIUrl":"10.1016/j.eneco.2025.108410","url":null,"abstract":"<div><div>We investigate the impact of cap-and-trade on firm selection and emission intensity in an economy with heterogeneous firms. A cap-and-trade system with free allowances may worsen firm composition by acting as a subsidy and reallocating production resources across sectors, allowing less productive firms to remain operative. This effect can distort the allocation of emission permits, leading to a higher emissions per unit of output in the economy than when environmental regulations are absent. To analyze the role of this effect, we develop a general equilibrium model that incorporates firm heterogeneity, input–output linkages, and green technology innovation. This framework allows us to evaluate how cap-and-trade policies shape firm composition, innovation incentives, and emission allocation across firms. We then calibrate the model to the EU Emissions Trading System and conduct simulations to evaluate the effects of its planned phase-out of free allowances. Our results show that the removal of free allowances, either partially or fully, substantially improves firm composition, enhances innovations and emission efficiency. Under the existing allowance allocations, a cap-and-trade system results in a higher economy-wide emission intensity than an unregulated economy, despite lowering total emissions. Our simulations show that properly phasing out free allowances reverses this effect, primarily through improved firm composition.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108410"},"PeriodicalIF":13.6,"publicationDate":"2025-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143817197","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-09DOI: 10.1016/j.eneco.2025.108484
Shajara Ul-Durar , Marco De Sisto , Noman Arshed , Naveed Yasin , Kae Reynolds
{"title":"Natural capital productivity as a decoupler of energy and emissions in Sub-Saharan Africa","authors":"Shajara Ul-Durar , Marco De Sisto , Noman Arshed , Naveed Yasin , Kae Reynolds","doi":"10.1016/j.eneco.2025.108484","DOIUrl":"10.1016/j.eneco.2025.108484","url":null,"abstract":"<div><div>This paper explores the relationship between decarbonization processes and energy-economic growth coupling dynamics in less developed regions of Sub-Saharan Africa. Using comprehensive analytics, this study illuminates the twin effects of energy use on economic growth vis-à-vis sustainability through theoretical frameworks typified by the load capacity curve and environmental Kuznets curve hypotheses. Using the data of 39 Sub-Saharan African countries in panel dynamic fixed effect quantile ARDL (Autoregressive Distributed Lag) with Fourier function. The study supports U-shaped energy intensity effects on carbon intensity, which is flipped to an inverted U-shape via the moderating role of natural capital productivity capacity, thus contributing to decoupling the energy–carbon emissions relationship. The controlling factors included electrification, development, and industrialization levels in the sample countries where development contributes in decarbonization while others lead to demand-led carbonization. The analysis conducted in this paper not only pursues the scale effect of energy in aiding growth but also supports sustainability through the energy transition and energy conservation. The findings reveal that the decarbonization pathway does not necessarily require a fall in energy intensity but rather the expansion of natural capital productivity that can contribute to environmental development. Policymakers can optimize the decarbonization‑leading energy use and productivity investment portfolio using the developed model.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108484"},"PeriodicalIF":13.6,"publicationDate":"2025-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143825852","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-09DOI: 10.1016/j.eneco.2025.108472
David Newbery, Cambridge Energy Policy Research Group
{"title":"Implications of renewable electricity curtailment for delivered costs","authors":"David Newbery, Cambridge Energy Policy Research Group","doi":"10.1016/j.eneco.2025.108472","DOIUrl":"10.1016/j.eneco.2025.108472","url":null,"abstract":"<div><div>At high penetration levels, the ratio of the marginal: average curtailment of an extra MW of wind is typically 3+ times its average. For a portfolio of on- and off-shore wind and solar PV, the ratio is considerably higher. With increasing methods of using potentially surplus VRE (exports, storage) average curtailment falls but the ratio of the marginal: average curtailment rises. The marginal levelised cost of VRE is inversely proportional to the Marginal Capacity Factor, which falls as marginal curtailment increases, raising concerns that reducing average curtailment may not lower the marginal cost of VRE. This paper proves this is not the case. Reducing curtailment has a magnified effect on marginal curtailment and does indeed lower the marginal cost of VRE.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108472"},"PeriodicalIF":13.6,"publicationDate":"2025-04-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143829782","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Energy SPACs performance and governance","authors":"Nebojsa Dimic , Mario Hernandez Tinoco , Vanja Piljak , Milos Vulanovic","doi":"10.1016/j.eneco.2025.108478","DOIUrl":"10.1016/j.eneco.2025.108478","url":null,"abstract":"<div><div>This study examines the performance of Special Purpose Acquisition Companies (SPAC) operating in the energy sector. Existing since 2003 and labeled as a new asset class, SPACs brought structural changes in the IPO market and outnumbered traditional IPOs in the last few years. A significant proportion of SPACs entering the market are energy-related. This paper analyzes a sample from 2003 to 2023 and provides novel insights on Energy SPAC's financial returns and corporate governance characteristics. We document that Energy SPACs exhibit positive returns at the merger announcement, while merger and long-term returns are negative. Moreover, among the corporate governance characteristics, the most prominent variable is the foreign origin of the CEO.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108478"},"PeriodicalIF":13.6,"publicationDate":"2025-04-08","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143817199","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-05DOI: 10.1016/j.eneco.2025.108435
Yiming Hu, Hua Liao
{"title":"High temperatures and national saving: Experience in the latest six decades","authors":"Yiming Hu, Hua Liao","doi":"10.1016/j.eneco.2025.108435","DOIUrl":"10.1016/j.eneco.2025.108435","url":null,"abstract":"<div><div>This study investigates the impact of climate change on saving rates. Using a geographic gridded data set, we develop a population-weighted high temperature shocks intensity index. We find that an additional percentage point increase in the share of a country’s population exposed to high temperature shocks will increase its saving rate by 0.03 percentage points. This effect is persistent. Additionally, the rise in saving rates is more pronounced in Asia, and in regions with larger high temperature shocks variability (e.g., Australia) and in regions with fast economic growth. More specifically, high temperature shocks can cause savings to rise by strengthening precautionary incentives and changing demographic structures. The findings shed light on how climate change can affect the macroeconomy.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108435"},"PeriodicalIF":13.6,"publicationDate":"2025-04-05","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143817198","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-04DOI: 10.1016/j.eneco.2025.108353
Muhammad Abubakr Naeem , Nadia Arfaoui
{"title":"Corrigendum to “Exploring downside risk dependence across energy markets: Electricity, conventional energy, carbon, and clean energy during episodes of market crises” [Energy Economics Volume 127, Part B, November 2023, 107082]","authors":"Muhammad Abubakr Naeem , Nadia Arfaoui","doi":"10.1016/j.eneco.2025.108353","DOIUrl":"10.1016/j.eneco.2025.108353","url":null,"abstract":"","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108353"},"PeriodicalIF":13.6,"publicationDate":"2025-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143768585","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-04DOI: 10.1016/j.eneco.2025.108453
Sungho Moon , Jongsu Lee , Junghun Kim , Hyunhong Choi
{"title":"Analysis on the acceptance of coal phase-out policy considering public preferences: Policy implications and future direction based on empirical evidence from South Korea","authors":"Sungho Moon , Jongsu Lee , Junghun Kim , Hyunhong Choi","doi":"10.1016/j.eneco.2025.108453","DOIUrl":"10.1016/j.eneco.2025.108453","url":null,"abstract":"<div><div>The urgency of coal phase-out has intensified as countries strive to mitigate climate change and achieve carbon neutrality. However, various conflicts may arise during policy implementation, and public acceptance can vary significantly depending on how policies are designed to address these challenges. This study investigates public preferences for coal phase-out policies in South Korea using a discrete choice experiment and simulates the acceptance rates of different policy options based on these preferences. Policy attributes included in the choice experiment are the capacity of decommissioned coal-fired power plants, plant locations, the utilization plan of idle power plant sites, the remaining period until decommissioning, labor conversion rates, and monthly electricity bill increases. Preference analysis indicates that the public prefers decommissioning coal-fired power plants located in the East Sea region and repurposing them into renewable energy power plants. Our simulation analysis reveals that, due to the differing electricity cost increases under each repurposing option, public acceptance declines as decommissioned capacity increases when power plants are repurposed into renewable energy facilities or LNG-combined cycle plants, whereas acceptance of cultural complexes rises. This study further simulates public acceptance for 15 coal-fired power plants in various location and determines the phase-out preference ranking for each plant. Lastly, higher labor conversion rates among the coal workforce can enhance public acceptance of the coal phase-out policy. Overall findings of this study highlight the importance of designing coal phase-out policies that account for economic and social aspects to ensure a balanced and effective just transition.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108453"},"PeriodicalIF":13.6,"publicationDate":"2025-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143829781","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Energy EconomicsPub Date : 2025-04-04DOI: 10.1016/j.eneco.2025.108461
Zhuhua Jiang , Xiyong Dong , Seong-Min Yoon
{"title":"Impact of oil prices on key energy mineral prices: Fresh evidence from quantile and wavelet approaches","authors":"Zhuhua Jiang , Xiyong Dong , Seong-Min Yoon","doi":"10.1016/j.eneco.2025.108461","DOIUrl":"10.1016/j.eneco.2025.108461","url":null,"abstract":"<div><div>The intricate relationship between the prices of oil and key energy minerals is vital for understanding the dynamics of energy markets and guiding future energy-related policies. In this study, we examine the influence of oil prices on key clean energy mineral prices by employing quantile and wavelet approaches. The main empirical results are as follows. First, the quantile cointegration test reveals a long-term equilibrium between oil and energy mineral prices, indicating that oil price changes influence these prices over time. Second, the quantile causality test shows that oil price changes significantly affect key energy mineral prices, particularly in tranquil markets. However, under the extreme conditions of energy mineral markets, this influence is generally insignificant, except for cobalt and manganese. Third, oil prices show stronger long-term positive correlations with most energy minerals, except cobalt, lithium, manganese, and rare earth elements, whose prices are shaped by renewable energy transitions, inefficiencies, and reliance on long-term contracts. Policymakers, investors, and companies can use these insights for risk management and strategic planning of clean/renewable energy projects.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"145 ","pages":"Article 108461"},"PeriodicalIF":13.6,"publicationDate":"2025-04-04","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"143790992","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":2,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}