Michael Hübler , Malin Wiese , Marius Braun , Johannes Damster
{"title":"The distributional effects of CO2 pricing at home and at the border on German income groups","authors":"Michael Hübler , Malin Wiese , Marius Braun , Johannes Damster","doi":"10.1016/j.reseneeco.2024.101435","DOIUrl":"10.1016/j.reseneeco.2024.101435","url":null,"abstract":"<div><p>While climate policy studies are widespread, fully fledged computable general equilibrium (CGE) model analyses of distributional policy effects are challenging because the required data and approaches are not directly available. To ease such distributional analyses, we provide a step-by-step “recipe” for disaggregating a country-specific representative consumer of a CGE model. Using this “recipe”, we implement German household survey data in a global CGE model by distinguishing three income groups of the German representative consumer. We find that the negative consumption effect of CO<span><math><msub><mrow></mrow><mrow><mn>2</mn></mrow></msub></math></span> pricing is highest for the low-income group, whereas the negative income effect is highest for the high-income group and exceeds the consumption effect. The low-income group benefits most from (per capita-based redistribution of) carbon pricing revenues and receives social transfers such that poor households can be better off with such climate policies than without them. CO<span><math><msub><mrow></mrow><mrow><mn>2</mn></mrow></msub></math></span> pricing of imports at the (EU) border slightly strengthens these distributional effects and is mainly beneficial for the low-income group. The geographic extension of emissions trading within a “climate club” leads to substantial efficiency gains that are beneficial for Germany and the EU.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-02-13","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765524000113/pdfft?md5=0507c63903c313654d538e3f4aae24f5&pid=1-s2.0-S0928765524000113-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139815530","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Domestic versus international emissions trading with capital mobility","authors":"Haitao Cheng","doi":"10.1016/j.reseneeco.2024.101433","DOIUrl":"10.1016/j.reseneeco.2024.101433","url":null,"abstract":"<div><p>We employ the footloose capital model to examine and compare how two countries decide on their emission permits non-cooperatively under domestic and international emissions trading in the presence of capital mobility. We find that even if two countries are symmetric and have the same carbon prices under domestic emissions trading, they can benefit from international emissions trading. This finding holds regardless of capital mobility. We also find that allowing footloose capital increases each country’s and global emissions under domestic emissions trading; however, it does not affect emissions under international emissions trading. Additionally, we show that the cooperative choices of emission permits are the same regardless of international mobility of emission permits and capital and are always lower than the non-cooperative ones.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-02-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765524000095/pdfft?md5=1c341b18aa44253284cb27e5cc917433&pid=1-s2.0-S0928765524000095-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139677351","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Juan Rosas-Munoz , Ana Espinola-Arredondo , Felix Munoz-Garcia
{"title":"When should the regulator be left alone in the commons? How fishing cooperatives can help ameliorate inefficiencies","authors":"Juan Rosas-Munoz , Ana Espinola-Arredondo , Felix Munoz-Garcia","doi":"10.1016/j.reseneeco.2024.101434","DOIUrl":"10.1016/j.reseneeco.2024.101434","url":null,"abstract":"<div><p>This paper examines a common-pool resource where quotas and fines are set by a regulator, an artisanal organization (cooperative), or both. We analyze the interaction between these two regulatory agencies under a flexible policy regime, where quotas and fines can be revised across periods, and under an inflexible policy regime, where they cannot. We show that inefficiencies arise in the inflexible regime, but they are reduced when the two agencies coexist. Overall, we demonstrate that the artisanal organization may be preferred when environmental damages are low, but the regulator may be preferable otherwise.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-01-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139578600","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Exclusion zones for renewable energy deployment: One man’s blessing, another man’s curse","authors":"Paul Lehmann , Philip Tafarte","doi":"10.1016/j.reseneeco.2023.101419","DOIUrl":"https://doi.org/10.1016/j.reseneeco.2023.101419","url":null,"abstract":"<div><p>Exclusion zones, like protected areas or setback distances, are the most common policy instrument to mitigate environmental impacts of human land-use, including the deployment of renewable energy sources (RES). However, exclusion zones may also increase generation and environmental costs of RES deployment. This paper aims to understand and quantify these trade-offs. Using a simple analytical model, we propose that cost effects of exclusion zones can be decomposed into a substitution effect (because RES generation is shifted to sites with higher or lower marginal costs) and an output effect (because more sites may be needed to attain a given RES generation target). We provide a numerical illustration for two examples of exclusion zones – setback distances to settlements and forest bans – which are implemented for wind power deployment in Germany. We find that moderate setback distances reduce disamenity costs but also lead to increases in generation and other environmental costs. This trade-off is primarily due to the output effect. Importantly, the output effect also implies that very restrictive setback distances may fail to reduce, and even increase, aggregate disamenity costs of wind power deployment. For forest bans, our analysis reveals substantial increases in disamenity costs. This trade-off mainly results from the substitution effect. Our analytical insights can be transferred to other fields of environmental policy, for example, exclusion zones regulating agricultural land-use or urban development.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-01-18","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S092876552300074X/pdfft?md5=3bd24b19c40964b3b0347ac212f60b38&pid=1-s2.0-S092876552300074X-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139494139","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"The long-run value of electricity reliability in India","authors":"Shefali Khanna , Kevin Rowe","doi":"10.1016/j.reseneeco.2024.101425","DOIUrl":"10.1016/j.reseneeco.2024.101425","url":null,"abstract":"<div><p>This paper evaluates residential consumers’ electricity consumption and appliance investment responses to power outages from 2015 to 2019 in Delhi, India. Our empirical strategy takes advantage of features of the electricity distribution network in the service territory of one of Delhi’s regulated distribution utilities that exposes similar customers to plausibly exogenous annual variation in electricity reliability. Using original household survey data and four years of billing and power outage records for more than one million customers, we estimate that an additional hour per month of power outages reduced electricity consumption by 4.8 percent. These estimates suggest that households are willing to pay USD 1.50 per kWh of lost consumption, which is more than 25 times the average price they pay for grid electricity.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765524000010/pdfft?md5=12c6f62c661fca2716170cc16a108199&pid=1-s2.0-S0928765524000010-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139422806","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Michael Hanemann , Xavier Labandeira , José M. Labeaga , Felipe Vásquez-Lavín
{"title":"Discrete-continuous models of residential energy demand: A comprehensive review","authors":"Michael Hanemann , Xavier Labandeira , José M. Labeaga , Felipe Vásquez-Lavín","doi":"10.1016/j.reseneeco.2024.101426","DOIUrl":"10.1016/j.reseneeco.2024.101426","url":null,"abstract":"<div><p>This paper reviews forty years of research applying econometric models of discrete-continuous choice to analyze residential demand for energy. The review is primarily from the perspective of economic theory. We examine how well the utility-theoretic models developed in the literature match data that is commonly available on residential energy use, and we highlight the modeling challenges that have arisen through efforts to match theory with data. The literature contains two different formalizations of a corner solution. The first, by Dubin and McFadden (1984) and Hanemann (1984), models an extreme corner solution, in which only one of the discrete choice alternatives is chosen. While those papers share similarities, they also have some differences which have not been noticed or exposited in the literature. Subsequently, a formulation first implemented by Wales and Woodland (1983) and extended by Kim et al. (2002) and Bhat (2008) models a general corner solution, where several but not all of the discrete choice alternatives are chosen. Seventeen papers have employed one or another of these models to analyze residential demand for fuels and/or energy end uses in a variety of countries. We review issues that arose in these applications and identify some alternative model formulations that can be used in future work on residential energy demand.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2024-01-11","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765524000022/pdfft?md5=2c28b8d331581decc8ca73e0b70bc7ce&pid=1-s2.0-S0928765524000022-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139422854","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Effectiveness of electric vehicle subsidies in China: A three-dimensional panel study","authors":"Tong Zhang , Paul J. Burke , Qi Wang","doi":"10.1016/j.reseneeco.2023.101424","DOIUrl":"10.1016/j.reseneeco.2023.101424","url":null,"abstract":"<div><p>Electric vehicles (EVs) are likely to emerge as the main means of zero-emission road transport. China has used a variety of policy approaches to encourage EV adoption, including vehicle purchase subsidies. This study uses a three-dimensional dataset to estimate the effect of purchase subsidies for domestic EVs on adoption in 316 cities in China over January 2016–December 2019. An instrumental variable approach that utilizes the timing of the cancellation of local subsidies by the central government is pursued. The findings suggest that purchase subsidies for domestic EVs have led to a sizeable increase in uptake, but have discouraged uptake of imported EVs. Higher consumer awareness of the subsidies is associated with a larger proportional effect on uptake of domestically-produced vehicles. We estimate that increases in the per-vehicle subsidy rate have on average reduced carbon dioxide (CO<sub>2</sub>) emissions at a marginal subsidy cost of about 4453 CNY (US$712) per tonne, which is high. However other benefits, including long-run benefits from the emergence of a new clean technology sector, may be substantial.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2023-12-29","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765523000799/pdfft?md5=3004e0382569b3e1e289ee1c90e5c320&pid=1-s2.0-S0928765523000799-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139193473","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Climate policy with electricity trade","authors":"Stefan Ambec , Yuting Yang","doi":"10.1016/j.reseneeco.2023.101422","DOIUrl":"10.1016/j.reseneeco.2023.101422","url":null,"abstract":"<div><p><span>Trade reduces the effectiveness of climate policies such as carbon pricing when domestic products are replaced by more carbon-intensive imports. We investigate the impact of unilateral carbon pricing on electricity generation in a country open to trade through interconnection lines. We characterize the energy mix with intermittent renewable sources of energy (wind or solar power). Electricity trade limits the penetration of renewables due to trade-induced competition. A carbon border adjustment mechanism (CBAM) removes this limit by increasing the cost of imported power, or by deterring imports. The CBAM must be complemented by a subsidy on renewables to increase </span>renewable generation<span> above domestic consumption. The interconnection line is then used to export power rather than importing it when renewables are producing. We also examine network pricing and investment into interconnection capacity. A higher carbon price increases interconnection investment which further reduces the effectiveness of carbon pricing. In contrast, when renewable electricity is exported, a higher subsidy on renewables reduces further carbon emissions by expanding interconnection capacity.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2023-12-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"139029830","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
{"title":"Energy transition and climate change abatement: A macroeconomic analysis","authors":"Lucas Bretschger","doi":"10.1016/j.reseneeco.2023.101423","DOIUrl":"10.1016/j.reseneeco.2023.101423","url":null,"abstract":"<div><p>The paper integrates the characteristics of regenerative energies into a dynamic macroeconomic model with climate change. Learning and economies of scale in new energy moderate the cost of emissions reductions and increase the speed of decarbonization. I provide closed-form analytical solutions for the development of regenerative energies, emissions, consumption, and population. The elasticity of substitution between clean and dirty energy inputs, stringency of climate policy, and potential raw material scarcity constitute critical conditions for reaching carbon neutrality by 2050. I find that a timely carbon phase-out requires sufficient substitution in the energy sector, continued learning and scale effects in regenerative energies, and active climate policy, which is indispensable even with enormous cost degression of regenerative energies. Raw material scarcity induced by regenerative energy use slows down the transition but can be overcompensated by more stringent climate policy at a moderate economic cost.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2023-12-19","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765523000787/pdfft?md5=a68cd940e45a23afb3281755636957d8&pid=1-s2.0-S0928765523000787-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138821849","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"OA","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}
Mallory Long , Patrick Withey , Dave Risk , Van Lantz , Chinmay Sharma
{"title":"Economic impacts of reducing methane emissions in British Columbia’s oil and natural gas sectors: Taxes vs technology standards","authors":"Mallory Long , Patrick Withey , Dave Risk , Van Lantz , Chinmay Sharma","doi":"10.1016/j.reseneeco.2023.101421","DOIUrl":"10.1016/j.reseneeco.2023.101421","url":null,"abstract":"<div><p><span>As countries reduce greenhouse gas emissions to fight the potential impacts of climate change, increasing attention is being paid to methane, which is roughly 34 times more potent than CO</span><sub>2</sub><span><span> over a 100-year time span. Governments in many jurisdictions aim to reduce methane by 45–75% in oil and gas sectors by 2030. Methane reductions are often achieved by implementing new technologies and operational techniques, but jurisdictions have discussed the implementation of a methane tax. While several studies have focused on the financial costs of reducing methane emissions through adopting new technologies, little information exists on the economy-wide impacts of these initiatives and the effectiveness of different policy tools. We develop a dynamic </span>computable general equilibrium model for British Columbia, Canada, to evaluate the economy wide impacts of methane technology standards versus taxes. Findings indicate that methane can be reduced by 75% by 2030 using technology standards at a loss of 0.0089% of GDP in 2030. Impacts associated with a methane tax will range from a loss of 0.0071–0.18% in 2030, depending on whether new technologies are assumed to be adopted. If a sufficiently high methane tax incentivizes adoption of new technology, the negative impacts of a tax are lower than that of a standard once the policy is fully implemented. While the overall economy-wide impact of a technology standard is relatively low, we find that it is as much as 65% higher than the direct costs.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":null,"pages":null},"PeriodicalIF":2.9,"publicationDate":"2023-12-09","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"138569381","PeriodicalName":null,"FirstCategoryId":null,"ListUrlMain":null,"RegionNum":3,"RegionCategory":"经济学","ArticlePicture":[],"TitleCN":null,"AbstractTextCN":null,"PMCID":"","EPubDate":null,"PubModel":null,"JCR":null,"JCRName":null,"Score":null,"Total":0}