Pub Date : 2024-11-26DOI: 10.1016/j.eneco.2024.108051
Marc Bacchetta, Eddy Bekkers, Jean-Marc Solleder, Enxhi Tresa
We combine econometric estimation with quantitative modeling to generate projections on the trade, GDP, and emissions effects of a potential trade liberalization agreement involving energy-related environmental goods (EREGs) and environmentally preferable products (EPPs). Trade liberalization can contribute to reduced emissions in two ways in our projections: (i) a reduction of import prices of goods promoting energy efficiency; and (ii) a reduction in the costs of intermediate and capital goods used in the production of electricity from renewable-energy sources. Four scenarios are evaluated, combining reductions in tariffs and non-tariff measures (NTMs) for EREGs and EPPs. Using simulations with the WTO Global Trade Model we find (i) an increase in exports of EREGs and EPPs both at the global level and in most regions; (ii) a modest increase in GDP in all regions because of falling tariffs, NTMs, and increased energy efficiency; and (iii) a modest reduction in global emissions of about 0.6%. The dominant channel is energy efficiency, whereas the costs of EREGs as intermediates in renewable energy production play a minor role, with or without end-use control.
{"title":"The potential impact of environmental goods trade liberalization on trade and emissions","authors":"Marc Bacchetta, Eddy Bekkers, Jean-Marc Solleder, Enxhi Tresa","doi":"10.1016/j.eneco.2024.108051","DOIUrl":"https://doi.org/10.1016/j.eneco.2024.108051","url":null,"abstract":"We combine econometric estimation with quantitative modeling to generate projections on the trade, GDP, and emissions effects of a potential trade liberalization agreement involving energy-related environmental goods (EREGs) and environmentally preferable products (EPPs). Trade liberalization can contribute to reduced emissions in two ways in our projections: (i) a reduction of import prices of goods promoting energy efficiency; and (ii) a reduction in the costs of intermediate and capital goods used in the production of electricity from renewable-energy sources. Four scenarios are evaluated, combining reductions in tariffs and non-tariff measures (NTMs) for EREGs and EPPs. Using simulations with the WTO Global Trade Model we find (i) an increase in exports of EREGs and EPPs both at the global level and in most regions; (ii) a modest increase in GDP in all regions because of falling tariffs, NTMs, and increased energy efficiency; and (iii) a modest reduction in global emissions of about 0.6%. The dominant channel is energy efficiency, whereas the costs of EREGs as intermediates in renewable energy production play a minor role, with or without end-use control.","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"10 1","pages":""},"PeriodicalIF":12.8,"publicationDate":"2024-11-26","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142825383","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}
Pub Date : 2024-11-24DOI: 10.1016/j.eneco.2024.108060
Hua-Tang Yin , Jun Wen , Hongming Yang , Yushuang He , Chun-Ping Chang
This paper investigates the dynamic interaction between energy ETF accessibility and stock market sentiment through the lens of resilience during the post COVID-19 pandemic period. We find that they tend to positively co-move in the long run. Adverse exogenous shocks on one of them not only have a persistent impact on itself but also cause non-diminish damage to the other. Compared to stock market sentiment resilience, energy ETF accessibility resilience is more constrained by the long-run co-movement. The co-movement is not significantly reshaped by possible structural time-breaks or Markovian regime shifts. Further exploration based on wavelet coherence analysis provides evidence for a stable and even gradually strengthening positive coherence between the two types of resilience in a volatile environment. Accordingly, our findings can offer valuable insights for financial regulators to achieve their designed objectives in the secondary markets of energy and stocks.
{"title":"The resilience dynamics of energy ETF accessibility and stock market sentiment in China during the post-pandemic era","authors":"Hua-Tang Yin , Jun Wen , Hongming Yang , Yushuang He , Chun-Ping Chang","doi":"10.1016/j.eneco.2024.108060","DOIUrl":"10.1016/j.eneco.2024.108060","url":null,"abstract":"<div><div>This paper investigates the dynamic interaction between energy ETF accessibility and stock market sentiment through the lens of resilience during the post COVID-19 pandemic period. We find that they tend to positively co-move in the long run. Adverse exogenous shocks on one of them not only have a persistent impact on itself but also cause non-diminish damage to the other. Compared to stock market sentiment resilience, energy ETF accessibility resilience is more constrained by the long-run co-movement. The co-movement is not significantly reshaped by possible structural time-breaks or Markovian regime shifts. Further exploration based on wavelet coherence analysis provides evidence for a stable and even gradually strengthening positive coherence between the two types of resilience in a volatile environment. Accordingly, our findings can offer valuable insights for financial regulators to achieve their designed objectives in the secondary markets of energy and stocks.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108060"},"PeriodicalIF":13.6,"publicationDate":"2024-11-24","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142743967","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}
Pub Date : 2024-11-23DOI: 10.1016/j.eneco.2024.108054
Han Shu , Jacob Mays
Disputes over cost allocation can present a significant barrier to investment in shared infrastructure. While it may be desirable to allocate cost in a way that corresponds to expected benefits, investments in long-lived projects are made under conditions of substantial uncertainty. In the context of electricity transmission, uncertainty combined with the inherent complexity of power systems analysis prevents the calculation of an estimated distribution of benefits that is agreeable to all participants. To analyze aspects of the cost allocation problem, we construct a model for transmission and generation expansion planning under uncertainty, enabling the identification of transmission investments as well as the calculation of benefits for users of the network. Numerical tests confirm the potential for realized benefits at the participant level to differ significantly from ex ante estimates. Based on the model and numerical tests we discuss several issues, including (1) establishing a valid counterfactual against which to measure benefits, (2) allocating cost to new and incumbent generators vs. solely allocating to loads, (3) calculating benefits at the portfolio vs. the individual project level, (4) identifying losers in a surplus-enhancing transmission expansion, and (5) quantifying the divergence between cost allocation decisions made ex ante and benefits realized ex post.
{"title":"Transmission benefits and cost allocation under ambiguity","authors":"Han Shu , Jacob Mays","doi":"10.1016/j.eneco.2024.108054","DOIUrl":"10.1016/j.eneco.2024.108054","url":null,"abstract":"<div><div>Disputes over cost allocation can present a significant barrier to investment in shared infrastructure. While it may be desirable to allocate cost in a way that corresponds to expected benefits, investments in long-lived projects are made under conditions of substantial uncertainty. In the context of electricity transmission, uncertainty combined with the inherent complexity of power systems analysis prevents the calculation of an estimated distribution of benefits that is agreeable to all participants. To analyze aspects of the cost allocation problem, we construct a model for transmission and generation expansion planning under uncertainty, enabling the identification of transmission investments as well as the calculation of benefits for users of the network. Numerical tests confirm the potential for realized benefits at the participant level to differ significantly from ex ante estimates. Based on the model and numerical tests we discuss several issues, including (1) establishing a valid counterfactual against which to measure benefits, (2) allocating cost to new and incumbent generators vs. solely allocating to loads, (3) calculating benefits at the portfolio vs. the individual project level, (4) identifying losers in a surplus-enhancing transmission expansion, and (5) quantifying the divergence between cost allocation decisions made ex ante and benefits realized ex post.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108054"},"PeriodicalIF":13.6,"publicationDate":"2024-11-23","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142743864","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}
Pub Date : 2024-11-21DOI: 10.1016/j.eneco.2024.108063
Dagmawe Tenaw
This study aims to examine the combined effects of green energy (Sustainable Development Goal, SDG-7.2), energy efficiency (SDG-7.3), and economic productivity (SDG-8.2) in mitigating energy-driven GHG emissions. The novelty of this study is that it extends the Kaya identity to mathematically explain how the two SDG-7 goals affect energy-driven emissions, and it provides global empirical evidence from 161 countries between1995 and 2019. The study also includes two-way and three-way interactions to better understand the complex interplay between the above SDG goals. Dynamic Common Correlated effects-instrumental variable estimation and Method of Moments-Quantile regression models were employed for the empirical investigation. The main findings confirm that green energy and energy efficiency significantly contribute to reducing energy-related emissions in all regions (except Asia in the case of green energy). The effects of green energy (energy efficiency) tend to slightly decrease (increase) as emissions levels rise. Economic productivity appears to trigger emissions, with the impact being stronger in low-productive regions. We also found a synergistic interplay between the two SDG-7 targets in mitigating energy-related emissions and weakening the emission-triggering effect of SDG-8.2 across different quantiles of emissions. Overall, maximizing the synergy between SDG-7 and 8 can substantially cut energy-driven emissions.
{"title":"The dynamics of green energy, energy efficiency, economic productivity, and energy-driven emissions in SDG context: Is there a synergistic interplay?","authors":"Dagmawe Tenaw","doi":"10.1016/j.eneco.2024.108063","DOIUrl":"10.1016/j.eneco.2024.108063","url":null,"abstract":"<div><div>This study aims to examine the combined effects of green energy (Sustainable Development Goal, <strong>SDG-7.2</strong>), energy efficiency (<strong>SDG-7.3</strong>), and economic productivity (<strong>SDG-8.2</strong>) in mitigating energy-driven GHG emissions. The novelty of this study is that it extends the <strong>Kaya identity</strong> to mathematically explain how the two SDG-7 goals affect energy-driven emissions, and it provides global empirical evidence from 161 countries between1995 and 2019. The study also includes <strong>two-way</strong> and <strong>three-way</strong> interactions to better understand the complex interplay between the above SDG goals. Dynamic Common Correlated effects-instrumental variable estimation and Method of Moments-Quantile regression models were employed for the empirical investigation. The main findings confirm that green energy and energy efficiency significantly contribute to reducing energy-related emissions in all regions (except Asia in the case of green energy). The effects of green energy (energy efficiency) tend to slightly decrease (increase) as emissions levels rise. Economic productivity appears to trigger emissions, with the impact being stronger in low-productive regions. We also found a <strong>synergistic interplay</strong> between the two SDG-7 targets in mitigating energy-related emissions and weakening the emission-triggering effect of SDG-8.2 across different quantiles of emissions. Overall, maximizing the synergy between SDG-7 and 8 can substantially cut energy-driven emissions.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108063"},"PeriodicalIF":13.6,"publicationDate":"2024-11-21","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142704361","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}
Pub Date : 2024-11-20DOI: 10.1016/j.eneco.2024.108057
Zhouzhi Li, Jiaguo Liu
Reliance only on economic growth fueled by fossil fuels may become unsustainable, where the negative ecological consequences of this growth path are rapidly impacting the ecosystem. To address these challenges, enhancing supply chain digitalization, increasing business enterprise R&D expenditure, and boosting government budget allocations for R&D are essential. Additionally, improving fossil fuel energy efficiency can play a critical role in reducing the environmental impact while transitioning to a more sustainable economic model. Hence, to solve this policy issue, this study empirically analyzed the drivers of CO2 emissions (CEM) between 2000Q1 and 2022Q4. By using time-frequency estimators, such as wavelet quantile-on-quantile regression (WQQR) and bootstrap Fourier Granger causality (BFQC), the research produces a variety of results that may be used to shape a policy framework focused on Sustainable Development Goals (SDGs). The results from BFQC show that business enterprise R&D expenditure, government budget allocations for R&D, fossil fuel energy efficiency, and oil Price Uncertainty lessen CEM while supply chain digitalization increases CEM. The bootstrap Fourier Granger causality also disclosed negative causality from business enterprise R&D expenditure government budget allocations for R&D, fossil fuel energy efficiency, and oil Price Uncertainty to CEM. In addition, supply chain digitalization has a positive predictive power over CEM. This study contributes to the existing literature by proposing an exhaustive and flexible policy structure designed to promote the advancement of SDGs 7, 8, and 13.
{"title":"Impact of supply chain digitalization, business enterprise R&D expenditure and government budget allocations for R&D: A roadmap towards carbon neutrality","authors":"Zhouzhi Li, Jiaguo Liu","doi":"10.1016/j.eneco.2024.108057","DOIUrl":"10.1016/j.eneco.2024.108057","url":null,"abstract":"<div><div>Reliance only on economic growth fueled by fossil fuels may become unsustainable, where the negative ecological consequences of this growth path are rapidly impacting the ecosystem. To address these challenges, enhancing supply chain digitalization, increasing business enterprise R&D expenditure, and boosting government budget allocations for R&D are essential. Additionally, improving fossil fuel energy efficiency can play a critical role in reducing the environmental impact while transitioning to a more sustainable economic model. Hence, to solve this policy issue, this study empirically analyzed the drivers of CO<sub>2</sub> emissions (CEM) between 2000Q<sub>1</sub> and 2022Q<sub>4</sub>. By using time-frequency estimators, such as wavelet quantile-on-quantile regression (WQQR) and bootstrap Fourier Granger causality (BFQC), the research produces a variety of results that may be used to shape a policy framework focused on Sustainable Development Goals (SDGs). The results from BFQC show that business enterprise R&D expenditure, government budget allocations for R&D, fossil fuel energy efficiency, and oil Price Uncertainty lessen CEM while supply chain digitalization increases CEM. The bootstrap Fourier Granger causality also disclosed negative causality from business enterprise R&D expenditure government budget allocations for R&D, fossil fuel energy efficiency, and oil Price Uncertainty to CEM. In addition, supply chain digitalization has a positive predictive power over CEM. This study contributes to the existing literature by proposing an exhaustive and flexible policy structure designed to promote the advancement of SDGs 7, 8, and 13.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108057"},"PeriodicalIF":13.6,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142743862","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}
Pub Date : 2024-11-20DOI: 10.1016/j.eneco.2024.108062
Mona Mashhadi Rajabi , Martina Linnenluecke , Tom Smith
This study investigates the information linkages around net zero announcements across countries. Relying on rational expectation theory, this study employs the generalized method of moments (GMM) as well as the implied volatility approach to quantify volatility linkages between exchange-traded funds (ETFs) from nine countries and a global ETF (WLD). The GMM analysis reveals that volatility linkages among country ETFs and WLD range from 39.67 % to 71.43 %, while the implied volatility approach indicates that volatility linkages between markets range from 32.31 % to 65.36 %, indicating significant information spillover across countries. A time-varying dynamic analysis further shows that the US Government's net zero announcement increased volatility linkages across markets by 8.7 % to 58.05 %, signaling market approval of the US commitment to net zero targets. Multivariate analysis of the monthly correlation between country ETFs and WLD shows that the US plays a pivotal role. Although net zero announcements by the US, UK, and China individually impacted market correlations, the effect of China's announcement was insignificant when all announcements were considered in the model. Without US participation, efforts by other countries to achieve global net zero goals are unlikely to succeed.
{"title":"Information linkages across countries around net zero announcements","authors":"Mona Mashhadi Rajabi , Martina Linnenluecke , Tom Smith","doi":"10.1016/j.eneco.2024.108062","DOIUrl":"10.1016/j.eneco.2024.108062","url":null,"abstract":"<div><div>This study investigates the information linkages around net zero announcements across countries. Relying on rational expectation theory, this study employs the generalized method of moments (GMM) as well as the implied volatility approach to quantify volatility linkages between exchange-traded funds (ETFs) from nine countries and a global ETF (WLD). The GMM analysis reveals that volatility linkages among country ETFs and WLD range from 39.67 % to 71.43 %, while the implied volatility approach indicates that volatility linkages between markets range from 32.31 % to 65.36 %, indicating significant information spillover across countries. A time-varying dynamic analysis further shows that the US Government's net zero announcement increased volatility linkages across markets by 8.7 % to 58.05 %, signaling market approval of the US commitment to net zero targets. Multivariate analysis of the monthly correlation between country ETFs and WLD shows that the US plays a pivotal role. Although net zero announcements by the US, UK, and China individually impacted market correlations, the effect of China's announcement was insignificant when all announcements were considered in the model. Without US participation, efforts by other countries to achieve global net zero goals are unlikely to succeed.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108062"},"PeriodicalIF":13.6,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142704359","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}
Pub Date : 2024-11-20DOI: 10.1016/j.eneco.2024.108066
Amar Rao , Brian Lucey , Satish Kumar
The functioning of energy markets is essential for global stability and is heavily influenced by geopolitical risks. Understanding these risks is critical for policymakers, market analysts, and nations. This study investigates the impact of geopolitical risks and their components on the futures markets of WTI crude oil and natural gas, utilizing time and frequency connectedness analysis along with impulse response function methods. The analysis is based on a dataset comprising daily prices of spot and futures contracts (across various maturities) as well as treasury yields. Our findings reveal that geopolitical risks have a significant, negative impact on the interest-adjusted spread of WTI crude oil. In contrast, the interest-adjusted spread of natural gas futures (NGF) displays a more complex pattern: while short-term maturities show an insignificant response, long-term maturities exhibit a significant reaction. Spillover effects are more pronounced in the short term but tend to weaken over longer horizons. This study underscores the dynamic influence of geopolitical risks on both key energy markets. Its findings offer a practical framework for risk management, equipping market participants and policymakers with valuable insights to better understand and respond to geopolitical risks in the energy sector.
{"title":"Temporal dynamics of geopolitical risk: An empirical study on energy commodity interest-adjusted spreads","authors":"Amar Rao , Brian Lucey , Satish Kumar","doi":"10.1016/j.eneco.2024.108066","DOIUrl":"10.1016/j.eneco.2024.108066","url":null,"abstract":"<div><div>The functioning of energy markets is essential for global stability and is heavily influenced by geopolitical risks. Understanding these risks is critical for policymakers, market analysts, and nations. This study investigates the impact of geopolitical risks and their components on the futures markets of WTI crude oil and natural gas, utilizing time and frequency connectedness analysis along with impulse response function methods. The analysis is based on a dataset comprising daily prices of spot and futures contracts (across various maturities) as well as treasury yields. Our findings reveal that geopolitical risks have a significant, negative impact on the interest-adjusted spread of WTI crude oil. In contrast, the interest-adjusted spread of natural gas futures (NGF) displays a more complex pattern: while short-term maturities show an insignificant response, long-term maturities exhibit a significant reaction. Spillover effects are more pronounced in the short term but tend to weaken over longer horizons. This study underscores the dynamic influence of geopolitical risks on both key energy markets. Its findings offer a practical framework for risk management, equipping market participants and policymakers with valuable insights to better understand and respond to geopolitical risks in the energy sector.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108066"},"PeriodicalIF":13.6,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142696349","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}
Pub Date : 2024-11-20DOI: 10.1016/j.eneco.2024.108053
Jaana Rahko
The prior literature has argued that inter-sectoral supply chain links provide an important channel for technology diffusion and productivity spillovers across industries, but whether such vertical spillovers influence industrial energy use has remained unexplored thus far. This study analyzes how the energy intensity of European industries is affected by vertical technology and energy productivity spillovers along the industrial supply chain. The analysis combines international input-output tables, energy use and patent data. Panel data from 2000 to 2014 for 27 industries in 29 countries is analyzed using panel fixed effects and instrumental variable estimation methods. The findings reveal that supply-use links channel significant vertical spillovers that promote a decline in energy intensity in downstream industries. These spillovers appear to be more strongly associated with overall energy intensity changes in upstream industries and, to some degree, with patented green innovations in upstream industries.
{"title":"Vertical spillovers and the energy intensity of European industries","authors":"Jaana Rahko","doi":"10.1016/j.eneco.2024.108053","DOIUrl":"10.1016/j.eneco.2024.108053","url":null,"abstract":"<div><div>The prior literature has argued that inter-sectoral supply chain links provide an important channel for technology diffusion and productivity spillovers across industries, but whether such vertical spillovers influence industrial energy use has remained unexplored thus far. This study analyzes how the energy intensity of European industries is affected by vertical technology and energy productivity spillovers along the industrial supply chain. The analysis combines international input-output tables, energy use and patent data. Panel data from 2000 to 2014 for 27 industries in 29 countries is analyzed using panel fixed effects and instrumental variable estimation methods. The findings reveal that supply-use links channel significant vertical spillovers that promote a decline in energy intensity in downstream industries. These spillovers appear to be more strongly associated with overall energy intensity changes in upstream industries and, to some degree, with patented green innovations in upstream industries.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108053"},"PeriodicalIF":13.6,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142705473","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}
Pub Date : 2024-11-20DOI: 10.1016/j.eneco.2024.108052
Dennis L. Weisman
Revenue cap regulation (RCR) is increasingly common in the energy sector because it purportedly reduces the regulated firm's disincentive to promote conservation. In comparison with price-cap regulation, RCR can yield higher prices, greater energy conservation, lower service quality and decreased cost-reducing innovation. The distortionary effects of earnings sharing on investment in cost-reducing innovation may be lessened under RCR. These properties hold even when the regulated firm is further constrained with a price cap that is set equal to the minimum price that satisfies the RCR constraint.
{"title":"On the incentive properties of revenue cap regulation","authors":"Dennis L. Weisman","doi":"10.1016/j.eneco.2024.108052","DOIUrl":"10.1016/j.eneco.2024.108052","url":null,"abstract":"<div><div>Revenue cap regulation (RCR) is increasingly common in the energy sector because it purportedly reduces the regulated firm's disincentive to promote conservation. In comparison with price-cap regulation, RCR can yield higher prices, greater energy conservation, lower service quality and decreased cost-reducing innovation. The distortionary effects of earnings sharing on investment in cost-reducing innovation may be lessened under RCR. These properties hold even when the regulated firm is further constrained with a price cap that is set equal to the minimum price that satisfies the RCR constraint.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108052"},"PeriodicalIF":13.6,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142743863","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}
Pub Date : 2024-11-20DOI: 10.1016/j.eneco.2024.108056
Liping Liu , Zheng Lü , Seong-Min Yoon
High speculation and volatility in China's stock market make enhancing volatility estimation and prediction in green and low-carbon sectors essential to meet the financing demands of the carbon-neutral industry and ensure sustainable development. In this study, we first introduce the CBOE Volatility Index (VIX) into the DAGM model to construct an improved model, DAGM-VIX, to explore the impact of China's Economic Policy Uncertainty (CEPU) and Climate Policy Uncertainty (CPU) on the stock market volatility of China's low-carbon economy. In addition, economic policy uncertainty is further decomposed into related uncertainties such as fiscal policy, monetary policy, trade policy, and exchange rate and capital account policy to explore in depth the heterogeneity of their impacts on stock market volatility of low-carbon economy. The results show that CEPU and CPU have a significant impact on the long-term volatility of China's green and low-carbon industries, and there are differences in the impact of uncertainty on stock market volatility in different policy areas. Compared with original DAGM and GM models, the DAGM-VIX model is superior in its predictive ability, and the DAGM-VIX-CEPU model, in particular, performs particularly well in predicting the volatility of green and low-carbon transition industries.
{"title":"Impact of policy uncertainty on stock market volatility in the China’s low-carbon economy","authors":"Liping Liu , Zheng Lü , Seong-Min Yoon","doi":"10.1016/j.eneco.2024.108056","DOIUrl":"10.1016/j.eneco.2024.108056","url":null,"abstract":"<div><div>High speculation and volatility in China's stock market make enhancing volatility estimation and prediction in green and low-carbon sectors essential to meet the financing demands of the carbon-neutral industry and ensure sustainable development. In this study, we first introduce the CBOE Volatility Index (VIX) into the DAGM model to construct an improved model, DAGM-VIX, to explore the impact of China's Economic Policy Uncertainty (CEPU) and Climate Policy Uncertainty (CPU) on the stock market volatility of China's low-carbon economy. In addition, economic policy uncertainty is further decomposed into related uncertainties such as fiscal policy, monetary policy, trade policy, and exchange rate and capital account policy to explore in depth the heterogeneity of their impacts on stock market volatility of low-carbon economy. The results show that CEPU and CPU have a significant impact on the long-term volatility of China's green and low-carbon industries, and there are differences in the impact of uncertainty on stock market volatility in different policy areas. Compared with original DAGM and GM models, the DAGM-VIX model is superior in its predictive ability, and the DAGM-VIX-CEPU model, in particular, performs particularly well in predicting the volatility of green and low-carbon transition industries.</div></div>","PeriodicalId":11665,"journal":{"name":"Energy Economics","volume":"141 ","pages":"Article 108056"},"PeriodicalIF":13.6,"publicationDate":"2024-11-20","publicationTypes":"Journal Article","fieldsOfStudy":null,"isOpenAccess":false,"openAccessPdf":"","citationCount":null,"resultStr":null,"platform":"Semanticscholar","paperid":"142704360","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}
京公网安备 11010802042870号
京ICP备2023020795号-1
扫码关注我们
求助内容：
应助结果提醒方式：