{"title":"Environmental taxation in the Bertrand differentiated duopoly: New insights","authors":"Ghina Abdul Baki , Walid Marrouch","doi":"10.1016/j.reseneeco.2022.101329","DOIUrl":"10.1016/j.reseneeco.2022.101329","url":null,"abstract":"<div><p><span>We derive an optimal emission tax under </span>imperfect competition<span> among polluters, while taking into account the significance of the spatial dimension for non-uniformly mixed pollutants. This setup reflects a large number of pollution scenarios across developed and developing countries. We build a partial equilibrium model that is based on Hotelling’s location model, and that is further generalized to include the polluters’ abatement levels. First, the firms’ locations are considered to be exogenous, but later we relax this assumption. Our results shed light on a trade-off between the environmental externality and the distortions resulting from the Bertrand competition. This trade-off is modulated by the locations of the two producers as well as preferences for a clean environment. Our results also indicate that, in the presence of more than one market failure, the principle of maximal differentiation is not always guaranteed. We further stress that designing a spatial emission tax is not too demanding in terms of regulator information. Lastly, we reveal that when environmental awareness is well-promoted, the green preference would be a cheaper anti-pollution instrument than emission taxes.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101329"},"PeriodicalIF":2.9,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42321714","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":"Exposure to wind turbines, regional identity and the willingness to pay for regionally produced electricity","authors":"Elke D. Groh","doi":"10.1016/j.reseneeco.2022.101332","DOIUrl":"10.1016/j.reseneeco.2022.101332","url":null,"abstract":"<div><p><span><span>To reduce greenhouse gas emissions the expansion of renewable energies is vital. However, negative externalities in the regions where </span>wind turbines are installed raise local opposition. A promising way to promote the installation of regional energy plants is the use of regional electricity labels. This paper examines if there is a willingness to pay for regionally produced electricity and whether the willingness to pay is related to exposure to wind turbines or causally affected by regional identity. To that end, this study is based on a large-scale survey among more than 1800 individuals in </span>Germany<span> including a combined priming and stated choice experiment on electricity contracts in combination with official data on wind turbines. The results of the econometric analysis reveal a highly significant willingness to pay a price premium for regional electricity contract attributes. In addition, we find no empirical evidence for a relationship between the exposure to wind turbines and the willingness to pay for regionally produced electricity. Furthermore, the estimation results provide evidence that regional identity reduces the willingness to pay for regionally produced electricity. The results have implications for public policy as well as commercial enterprises.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101332"},"PeriodicalIF":2.9,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"46229129","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":"Rural access to electricity and welfare outcomes in Rwanda: Addressing issues of transitional heterogeneities and between and within gender disparities","authors":"Philip Kofi Adom , Aimable Nsabimana","doi":"10.1016/j.reseneeco.2022.101333","DOIUrl":"10.1016/j.reseneeco.2022.101333","url":null,"abstract":"<div><p>The literature on the impact of electricity access are generally inconclusive. Potential causes include geographical differences, limited external validity (due to the focus on small-scale projects) and self-selection bias (due to not accounting for observed and unobserved heterogeneities) of some studies. Moreover, a large part of the literature on energy-gender nexus addresses between-gender instead of within-gender disparity, which is considered relevant because socio-economic characteristics do differ within a particular gender group. We address some of these concerns in the literature, using the endogenous switching regression (as identifying strategy) and the Rwanda national fifth Integrated Household Living Conditions Survey data of 2016/2017 to examine electricity adoption decision and impact of electrification on welfare outcomes in rural Rwanda. We find that having access to electricity impacts positively on equivalised consumption and labour force participation by 3.097 percent and 22 more days, respectively. We find significant positive transitional heterogeneity effects, suggesting that unobserved factors do inflate the estimated impacts. Further, the result reveals significant male – female gap (both in terms of vertical and horizontal changes) in the impact of electrification on labour force participation and equivalised consumption expenditure. We discuss the policy implications.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101333"},"PeriodicalIF":2.9,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44652769","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":"Entry, location, and optimal environmental policies","authors":"Manuel Estay , John K. Stranlund","doi":"10.1016/j.reseneeco.2022.101326","DOIUrl":"10.1016/j.reseneeco.2022.101326","url":null,"abstract":"<div><p>We investigate the problem of choosing environmental regulations to control a multilateral, spatially heterogeneous pollution externality. There are three sources of inefficiency in this problem; the number of firms, their locations and their production/emissions levels. A first-best policy requires three instruments to address each of the sources of inefficiency, but such policies are not practical in most settings. Therefore, we examine the relative performance of second-best policies that optimally control one or two of the sources of inefficiency while leaving the other one or two sources uncontrolled. Because of the complexity of our theoretical model, we conduct numerical simulations to compare the alternative policies. We find that a policy of optimally-chosen individual quotas by themselves perform very poorly, because they encourage excessive entry. Combining individual quotas with an optimal entry restriction performs significantly better. Spatially differentiated taxes alone perform very well, because they partially address both the entry and location sources of inefficiency in addition to limiting pollution. We also argue that the welfare losses associated with even simpler policies like zoning restrictions or homogeneous taxes may not be high enough to justify the additional implementation difficulties associated with theoretically more efficient policies.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101326"},"PeriodicalIF":2.9,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43978289","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 transitions and technology change: “Leapfrogging” reconsidered","authors":"T. Robert Fetter","doi":"10.1016/j.reseneeco.2022.101327","DOIUrl":"10.1016/j.reseneeco.2022.101327","url":null,"abstract":"<div><p>Understanding the relationship of economic growth, energy consumption, and pollution is critical for forecasting energy demand and environmental impacts. Energy technology innovations create opportunities for low- and middle-income countries to “leapfrog” over older technologies that dominated the development paths of today’s industrialized countries. Yet technology change may also increase consumption at earlier development stages, and institutions and policy choices can hinder energy-efficient development. Extending a recent paper by van Benthem (2015), I build a panel dataset over 136 countries and nearly 60 years to show that over this wider and longer panel, the long-run energy intensity of economic growth is substantially lower for today’s developing countries than in developing countries in the past.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101327"},"PeriodicalIF":2.9,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"41319833","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":"Optimal federal co-regulation of renewable energy deployment","authors":"Jan-Niklas Meier , Paul Lehmann","doi":"10.1016/j.reseneeco.2022.101318","DOIUrl":"10.1016/j.reseneeco.2022.101318","url":null,"abstract":"<div><p>In federally organized countries the allocation of renewable energy (RE) deployment is regulated by national and subnational governments. We analyze the efficiency of this federal co-regulation when different types of policy instruments – price and quantity – are applied at different government levels. Using an analytical model with two government levels, we show that efficient federal co-regulation crucially depends on the burden sharing of national subsidy costs among subnational jurisdictions. We find that national price-based regulation, i.e. feed-in tariff, is efficient if burden shares of subnational jurisdictions are distributed in proportion to their population. This holds regardless of the policy instrument applied at the subnational level as long as RE deployment causes regional costs instead of regional benefits. Under national quantity-based regulation, i.e. tenders, efficient burden sharing depends on the policy instrument applied at the subnational level. Subnational price-based regulation, e.g. state-level levies, combined with national quantity-based regulation requires burden shares to be oriented towards first-best RE deployment shares. By contrast, subnational quantity-based regulation, i.e. spatial planning, combined with national quantity-based regulation, under certain conditions, requires population-oriented burden sharing, namely, if RE deployment only causes negative regional effects. If so, we also show that national quantity-based regulation ends up to be de-facto price-based.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101318"},"PeriodicalIF":2.9,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"43782249","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":"Which “second-best” climate policies are best? Simulating cost-effective policy mixes for passenger vehicles","authors":"Chandan Bhardwaj , Jonn Axsen , David McCollum","doi":"10.1016/j.reseneeco.2022.101319","DOIUrl":"10.1016/j.reseneeco.2022.101319","url":null,"abstract":"<div><p><span>In the real-world of political opposition and complex market failures, carbon pricing alone will not achieve deep GHG mitigation targets. Hence, we search for the most cost-effective “second-best” policies. Focusing on the light-duty vehicle sector in the case of Canada, we compare several policies in terms of effectiveness (regarding 2030 GHG goals) and mitigation costs, namely: (i) a carbon tax; (ii) a vehicle </span>emission standard<span> (or VES); (iii) a zero emissions vehicle (ZEV) mandate, and (iv) combinations of all three at various stringencies. In this effort, we apply the AUtomaker-consumer Model (AUM), which endogenously simulates consumer and automaker decisions and technological change. Comparing individual policies, the regulations are about three times more expensive than the carbon tax. Among “second-best” policies, the VES is cheaper than a ZEV mandate at lower stringencies, but at higher stringencies the two are similarly efficient (both incentivize widespread ZEV deployment). In policy mixes, cost-effectiveness is improved by a carbon tax. Specifically, inclusion of a CDN$100–150/tonne tax can achieve targets while being 30–40% less costly than a regulation alone. We suggest that policymakers implement carbon pricing as stringently as politically feasible (for efficiency), complemented by regulations as needed (for efficacy) to meet GHG targets.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"70 ","pages":"Article 101319"},"PeriodicalIF":2.9,"publicationDate":"2022-11-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42146200","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":"Could the environment be a normal good for you and an inferior good for me? A theory of context-dependent substitutability and needs","authors":"Marion Dupoux , Vincent Martinet","doi":"10.1016/j.reseneeco.2022.101316","DOIUrl":"10.1016/j.reseneeco.2022.101316","url":null,"abstract":"<div><p>Theoretical models often assume the environment to be a normal good, irrespective of one’s income. However, a priori, nothing prohibits an environmental good from being normal for some individuals and inferior for others. We develop a conceptual framework in which private consumption and an environmental public good act as substitutes or complements for satisfying different needs. Subsequently, the environment can switch between normal and inferior depending on one’s income and environment and corresponding prevalent needs. If the environment is inferior for some range of income, then the willingness to pay for environmental preservation becomes non-monotonic with respect to income. We discuss the relevance of our framework in the context of (income-adjusted) unit benefit transfers, dual-rate discounting and the Environmental Kuznets curve.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"69 ","pages":"Article 101316"},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765522000331/pdfft?md5=7a3e53d18f8804ab32d58bde633f4c58&pid=1-s2.0-S0928765522000331-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"42808865","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":"Corporate social responsibility, social optimum, and the environment-growth tradeoff","authors":"Juin-Jen Chang , Jhy-Hwa Chen , Ming-Fang Tsai","doi":"10.1016/j.reseneeco.2022.101311","DOIUrl":"10.1016/j.reseneeco.2022.101311","url":null,"abstract":"<div><p>This paper examines the implications of environmental corporate social responsibility<span> (CSR) for the environment-growth tradeoff and social optimum in a dynamic general equilibrium growth model. We show that environmental CSR activity loosens the tradeoff between the environment and growth, but it cannot achieve the social optimum. Firm participation in environmental CSR induces the perceived CSR of green consumers and increases their willingness to pay. Because the environmental CSR promotes more consumption and increases growth, the environment-growth tradeoff loosens up in the competitive equilibrium. However, to translate the CSR perceived benefits into their profits, firms need some degree of monopoly power to set their prices to capture the stronger demand. CSR is thus promoted as a marketing strategy to help companies achieve their competitive advantage, and becomes a way of product differentiation in the environment of monopolistic competition. Since monopoly power serves as a catalyst, CSR alone cannot achieve the first-best optimum in terms of the environment and growth by fully removing the distortions caused by market imperfection.</span></p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"69 ","pages":"Article 101311"},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"48491294","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}
Lorenzo Montrone , Jan Christoph Steckel , Matthias Kalkuhl
{"title":"The type of power capacity matters for economic development – Evidence from a global panel","authors":"Lorenzo Montrone , Jan Christoph Steckel , Matthias Kalkuhl","doi":"10.1016/j.reseneeco.2022.101313","DOIUrl":"10.1016/j.reseneeco.2022.101313","url":null,"abstract":"<div><p>We examine the relationship between different types of power investments and regional economic dynamics. We construct a novel panel dataset combining data on regional GDP and power capacity additions for different technologies between 1960 and 2015, which covers 65% of the global power capacity that has been installed in this period. We use an event study design to identify the effect of power capacity addition on GDP per capita, exploiting the fact that the exact amount of power capacity coming online each year is determined by random construction delays. We find evidence that GDP per capita increases by 0.2% in the 6 years around the coming online of 100 MW coal-fired power capacity. We find similar effects for hydropower capacity, but not for any other type of power capacity. The positive effects are regionally bounded and stronger for projects on new sites (green-field). The magnitude of this effect might not be comparable to the total external costs of building new coal-fired power capacity, yet our results help to explain why policymakers favor coal investments for spurring regional growth.</p></div>","PeriodicalId":47952,"journal":{"name":"Resource and Energy Economics","volume":"69 ","pages":"Article 101313"},"PeriodicalIF":2.9,"publicationDate":"2022-08-01","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"https://www.sciencedirect.com/science/article/pii/S0928765522000306/pdfft?md5=55674c56ec6b1c350bfccf83aa2e39d3&pid=1-s2.0-S0928765522000306-main.pdf","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"44652558","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}