The Experts below are selected from a list of 360 Experts worldwide ranked by ideXlab platform
Rüdiger Pethig - One of the best experts on this subject based on the ideXlab platform.
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Trade in Fossil Fuel deposits for preservation and strategic action
Journal of Public Economics, 2017Co-Authors: Thomas Eichner, Rüdiger PethigAbstract:Abstract In the world economy with interdependent markets for Fossil Fuel deposits and extracted Fossil Fuel, some coalition of countries may fight climate change by purchasing and preserving Fossil Fuel deposits, which would be exploited otherwise. Assuming that deposits are traded on a market with a uniform price, we find that the outcome is efficient if the coalition is a price taker in both markets, but inefficient if it acts strategically in the deposit market but not in the Fuel market, or acts strategically in both markets. The latter result demonstrates that Harstad ’s ( 2012 , Theorem 1) ‘efficiency-despite-strategic-action result’ is not robust with respect to changes in the concepts of the deposit market and market (or bargaining) power. In a simplified parametric version of the game, a strategically acting coalition buys fewer deposits, consumes more Fuel, and puts up with higher climate damage than in first-best.
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efficient management of insecure Fossil Fuel imports through taxing domestic green energy
Journal of Public Economic Theory, 2015Co-Authors: Thomas Eichner, Rüdiger PethigAbstract:A small open economy produces a consumer good, green and black energy, and imports Fossil Fuel at an uncertain price. Unregulated competitive markets are shown to be inefficient. The implied market failures are due to the agents’ attitudes toward risk, to risk shifting and the uniform price for both types of energy. Under the plausible assumptions that consumers are prudent and at least as risk averse as the producers of black energy, the risk can be efficiently managed by taxing emissions and green energy. The need to tax (!) green energy contradicts the widespread view that subsidization of green energy is an appropriate means to enhance energy security in countries depending on risky Fossil Fuel imports.
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efficient management of insecure Fossil Fuel imports through taxing domestic green energy
Volkswirtschaftliche Diskussionsbeiträge, 2009Co-Authors: Thomas Eichner, Rüdiger PethigAbstract:A small open economy produces a consumer good along with green and black energy and imports Fossil Fuel for black-energy production at an uncertain world market price. Efficient risk management requires curbing Fuel consumption, and hence carbon emissions, when consumers are prudent. Moreover, if consumer preferences display constant absolute risk aversion (implying prudence), an efficient response to increasing risk is promoting green energy and reducing total energy production. Unregulated competitive markets are inefficient when consumers are risk averse. With the plausible assumption of prudent consumers and risk neutral producers, taxing both Fossil Fuel and green energy restores efficiency.
Thomas Eichner - One of the best experts on this subject based on the ideXlab platform.
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Trade in Fossil Fuel deposits for preservation and strategic action
Journal of Public Economics, 2017Co-Authors: Thomas Eichner, Rüdiger PethigAbstract:Abstract In the world economy with interdependent markets for Fossil Fuel deposits and extracted Fossil Fuel, some coalition of countries may fight climate change by purchasing and preserving Fossil Fuel deposits, which would be exploited otherwise. Assuming that deposits are traded on a market with a uniform price, we find that the outcome is efficient if the coalition is a price taker in both markets, but inefficient if it acts strategically in the deposit market but not in the Fuel market, or acts strategically in both markets. The latter result demonstrates that Harstad ’s ( 2012 , Theorem 1) ‘efficiency-despite-strategic-action result’ is not robust with respect to changes in the concepts of the deposit market and market (or bargaining) power. In a simplified parametric version of the game, a strategically acting coalition buys fewer deposits, consumes more Fuel, and puts up with higher climate damage than in first-best.
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efficient management of insecure Fossil Fuel imports through taxing domestic green energy
Journal of Public Economic Theory, 2015Co-Authors: Thomas Eichner, Rüdiger PethigAbstract:A small open economy produces a consumer good, green and black energy, and imports Fossil Fuel at an uncertain price. Unregulated competitive markets are shown to be inefficient. The implied market failures are due to the agents’ attitudes toward risk, to risk shifting and the uniform price for both types of energy. Under the plausible assumptions that consumers are prudent and at least as risk averse as the producers of black energy, the risk can be efficiently managed by taxing emissions and green energy. The need to tax (!) green energy contradicts the widespread view that subsidization of green energy is an appropriate means to enhance energy security in countries depending on risky Fossil Fuel imports.
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efficient management of insecure Fossil Fuel imports through taxing domestic green energy
Volkswirtschaftliche Diskussionsbeiträge, 2009Co-Authors: Thomas Eichner, Rüdiger PethigAbstract:A small open economy produces a consumer good along with green and black energy and imports Fossil Fuel for black-energy production at an uncertain world market price. Efficient risk management requires curbing Fuel consumption, and hence carbon emissions, when consumers are prudent. Moreover, if consumer preferences display constant absolute risk aversion (implying prudence), an efficient response to increasing risk is promoting green energy and reducing total energy production. Unregulated competitive markets are inefficient when consumers are risk averse. With the plausible assumption of prudent consumers and risk neutral producers, taxing both Fossil Fuel and green energy restores efficiency.
Boqiang Lin - One of the best experts on this subject based on the ideXlab platform.
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impacts of increasing renewable energy subsidies and phasing out Fossil Fuel subsidies in china
Renewable & Sustainable Energy Reviews, 2014Co-Authors: Xiaoling Ouyang, Boqiang LinAbstract:Abstract Subsidies to Fossil-Fuel consumption have made China׳s energy system fragile and unsustainable. It is necessary for China to reform Fossil-Fuel subsidies and reflect the resource cost and environmental cost in energy prices. Considering the life-cycle external costs, this paper estimates the scale of Fossil-Fuel subsidy and the true cost of renewable energy in 2010 and evaluates impacts of increasing renewable energy subsidies and phasing out Fossil Fuel subsidies on macro-economy and energy system in China based on scenario analysis. Simulation results show that the negative impacts on economic growth can be reduced from 4.460% to 0.432%, if only 10% of Fossil Fuel subsidies were removed. Increasing subsidies for renewable energy has positive impacts on macroeconomic variables. Although the economic benefits per unit of subsidies for renewable energy are lower than those for Fossil Fuels by 0.06–0.19 CNY, the revenue gap can be narrowed by shifting more subsidies from Fossil Fuels to renewables. Increasing subsidies for renewable energy helps optimize China׳s energy system in three ways: the first is making energy consumption structure cleaner; the second is improving energy efficiency; and the third is addressing the problem of imbalanced distribution and consumption of energy.
Frederick Van Der Ploeg - One of the best experts on this subject based on the ideXlab platform.
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cumulative emissions unburnable Fossil Fuel and the optimal carbon tax
Technological Forecasting and Social Change, 2017Co-Authors: Frederick Van Der Ploeg, Armon RezaiAbstract:A stylised analytical framework is used to show how the global carbon tax and the amount of untapped Fossil Fuel can be calculated from a simple rule given estimates of society's rate of time impatience and intergenerational inequality aversion, the extraction cost technology, the rate of technical progress in renewable energy and the future trend rate of economic growth. The predictions of the simple framework are tested in a calibrated numerical and more complex version of the integrated assessment model (IAM). This IAM makes use of the Oxford carbon cycle of Allen et al. (2009), which differs from DICE, FUND and PAGE in that cumulative emissions are the key driving force of changes in temperature. We highlight the importance of the speed and direction of technological change for the energy transition and how time impatience, intergenerational inequality aversion and expected trend growth affect the time paths of the optimal global carbon tax and the optimal amount of Fossil Fuel reserves to leave untapped. We also compare these with the adverse global warming trajectories that occur if no policy actions are taken.
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cumulative emissions unburnable Fossil Fuel and the optimal carbon tax
Ecological Economics Papers, 2016Co-Authors: Armon Rezai, Frederick Van Der PloegAbstract:A new IAM is used to calculate the optimal tradeoff between, on the one hand,locking up Fossil Fuel and curbing global warming, and, on the other hand,sacrificing consumption now and in the near future. This IAM uses the Oxford carbon cycle, which differs from DICE, FUND and PAGE in that cumulative emissions are the key driving force of changes in temperature. We highlight how time impatience, intergenerational inequality aversion and expected trend growth affect the time paths of the optimal global carbon tax and the optimal amount of Fossil Fuel reserves to leave untapped. We also compare these with the adverse and deleterious global warming trajectories that occur if no policy actions are taken. (authors' abstract)
Marco Raberto - One of the best experts on this subject based on the ideXlab platform.
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the impact of phasing out Fossil Fuel subsidies on the low carbon transition
Energy Policy, 2019Co-Authors: Irene Monasterolo, Marco RabertoAbstract:Abstract There is growing consensus on the fact that Fossil Fuel subsidies provided by governments in high-income countries represent a misalignment on emissions’ reduction with the global climate agenda. In addition, a discussion emerged on the negative socio-economic and environmental externalities associated with Fossil Fuel subsidies. Nevertheless, pathways for phasing out Fossil Fuel subsidies in high income countries and their implications on the low-carbon transition have not yet been assessed. With the aim to narrow this knowledge gap, we extend the EIRIN Stock-Flow Consistent behavioral model to study the implications on sustainable development of the gradual phasing out of Fossil Fuels subsidies, whose revenues could be used by the government to subsidize energy investments in green capital (e.g. solar panels), either via fiscal policies or green bonds. We assess the effects on green growth, employment, credit and bonds market, as well as the distributive effects across heterogeneous households and sectors. A smooth phasing out of Fossil Fuels subsidies contributes to improve macroeconomic performance, to decrease inequality and helps the government to find fiscal space to support stable renewable energy policies. Renewable energy subsidies contribute to foster the low-carbon transition but could imply distributive effects, depending on the way in which they are implemented.
