April 26, 2009

Happy Birthday Climate ChangeS!

This week Climate ChangeS turns one year old! The kid is young but it's growing fast: 12,444 unique visitors from 153 Countries have visited Climate ChangeS 19,788 times this year (April 25th 2008 - April 25th 2009). The trend is increasing, with an average of 120 hits per day last month.

With 15,020 downloads of Working Papers (13,357 unique downloads), Climate ChangeS is probably today one of the best channels to circulate new research on the economics of climate change. New papers quickly gain attention of 470 email or feed subscribers from universities, institutions, the private sector and governmental agencies worldwide. Feeds with titles and short abstracts have been viewed 86,331 times (with most papers totalling between 200 and 435 views) with 10,615 clickthroughs.

I want to take this opportunity to thank all authors that have sent links to their papers and have helped me to make Climate ChangeS a useful tool for all those that work to find sensible ways to cool the planet down.

Emanuele

Intraday Price Formation and Volatility in the European Union Emissions Trading Scheme: An Introductory Analysis

by Waldemar Rotfuß

- This paper presents an introductory analysis of price formation and volatility in the European Union Emissions Trading Scheme using highfrequency data. The results show that there are several anomalies both in the EUA spot and EUA futures market. First, price formation seems to take place on price sets that are coarser than those offered by the exchanges. Second, price formation in the EUA spot market (BlueNext) may be strongly affected by the price formation in the EUA futures market (ICE Futures).

Rotfuß, W. (2009). "Intraday Price Formation and Volatility in the European Union Emissions Trading Scheme: An Introductory Analysis." ZEW Discussion Paper No. 09-018, Mannheim, April 2009.

Green Serves the Dirtiest. On the Interaction between Black and Green Quotas

by Christoph Böhringer and Knut Einar Rosendahl

- Tradable black (CO2) and green (renewables) quotas gain in popularity and stringency within climate policies of many OECD countries. The overlapping regulation through both instruments, however, may have important adverse economic implications. Based on stylized theoretical analysis and substantiated with numerical model simulations for the German electricity market, we show that a green quota imposed on top of a black quota does not only induce substantial excess cost but serves the dirtiest power technologies as compared to a black quota regime only.

Böhringer, C. K. E. Rosendahl (2009). "Green Serves the Dirtiest. On the Interaction between Black and Green Quotas." Discussion Papers 581 - Statistics Norway, April 2009.

Intra- and Extra-Union Flexibility in Meeting the European Union's Emission Reduction Targets

by Richard S J Tol

- The EU has proposed four flexibility mechanisms for the regulation of greenhouse gas emissions in the period 2013-2020: (1) the Emissions Trade Scheme (ETS); (2) trade in non-ETS allotments between Member States; (3) the Clean Development Mechanism (CDM); and (4) trade in CDM warrants between Member States. This paper shows that aggregate abatement costs fall as flexibility increases. However, limited flexibility creates rents so that increasing flexibility raises costs in some Member States.

Tol, R.S.J. (2009). "Intra- and Extra-Union Flexibility in Meeting the European Union's Emission Reduction Targets." ESRI Working Paper 290, April 2009.

Ensuring Green Growth in a Time of Economic Crisis - The Role of Energy Technology

by the International Energy Agency

- Despite the severity of the current financial and economic crisis, it cannot be allowed to distract us from addressing critical and strategic climate change and energy challenges. The energy sector produces 60% of global greenhouse gas emissions and so it must also be a key part of any strategy to reduce them. This paper describes the most promising low-carbon technologies, their current status and the policy framework that will be necessary to achieve their widespread deployment. It also highlights what immediate steps can be taken as part of a Clean Energy New Deal.

IEA (2009). "Ensuring Green Growth in a Time of Economic Crisis - The Role of Energy Technology." April 2009.

Measuring Energy Supply Risks: A G7 Ranking

by Manuel Frondel, Nolan Ritter, and Christoph M. Schmidt

- In this paper, we analyze the energy security situation of the G7 countries using a statistical risk indicator and empirical energy data for the years 1978 through 2007. We find that Germany's energy supply risk has risen substantially since the oil price crises of the 1970s, whereas France has managed to reduce its risk dramatically, most notably through the deployment of nuclear power plants. Due to its resource poverty, Italy has by far the highest energy supply risk among G7 countries.

Frondel, M., N. Ritter and C.M. Schmidt (2009). "Measuring Energy Supply Risks: A G7 Ranking." Ruhr Economic Papers #104, April 2009.

April 19, 2009

An Elaborated Global Climate Policy Architecture: Specific Formulas and Emission Targets for All Countries in All Decades

by Jeffrey A. Frankel

- This paper analyzes a detailed plan to set quantitative national limits on emissions of greenhouse gases, following along the lines of the Kyoto Protocol. It is designed to fill in the most serious gaps: the absence of targets extending as far as 2100, the absence of participation by the United States and developing countries, and the absence of reason to think that countries will abide by commitments. The plan elaborates on the idea of a framework of formulas that can assign quantitative limits across countries, one budget period at a time. Unlike other century-long paths of emission targets this plan is based partly on politics.

Frankel, J.A. (2009). "An Elaborated Global Climate Policy Architecture: Specific Formulas and Emission Targets for All Countries in All Decades." NBER Working Paper No. 14876, April 2009.

Global Financial Structure and Climate Change

by John Whalley and Yufei Yuan

- We suggest in this paper that, with modest climate changes of 1-2 degrees C, the global insurance market will expand dramatically. However, under more extreme climate change scenarios, the entire global financial structure will undergo major changes, with a re-focusing of major financial activity away from intermediation between borrowers and lenders and the facilitation of the accumulation of assets, and towards a focus on insurance arrangements and the diversification of risks associated with climate change.

Whalley, J. and Y. Yuan (2009). "Global Financial Structure and Climate Change." NBER Working Paper No. 14888, April 2009.

Carbon Motivated Regional Trade Arrangements: Analytics and Simulations

by Yan Dong and John Whalley

- This paper presents both analytics and numerical simulation results relevant to proposals for carbon motivated regional trade agreements summarized in Dong & Whalley(2008). Our results show that carbon motivated regional agreements can reduce global emissions, but the effect is very small and even with penalty mechanisms used, the effects are still small. This supports the basic idea in our previous policy paper that trade policy is likely to be a relatively minor consideration in climate change containment.

Dong, Y. and J. Whalley (2009). "Carbon Motivated Regional Trade Arrangements: Analytics and Simulations." NBER Working Paper No. 14880, April 2009.

Alternative Approaches to Cost Containment in a Cap-and-Trade System

by Harrison Fell and Richard D. Morgenstern

- We compare several emissions reduction instruments, including quantity policies with banking and borrowing, price policies, and hybrid policies (safety valve and price collar), using a dynamic model with stochastic baseline emissions. Based on simulation analysis we find that restrictions on banking and borrowing can severely limit the value of the policy. Although emissions taxes generally provide the lowest expected abatement costs, a cap-and-trade system combined with either a safety valve or a price collar can be designed to provide expected abatement costs near those of a tax, but with lower emissions variance than a tax. Consistently, a price collar is more cost-effective than a safety valve for a given expected cumulative emissions outcome because it encourages inexpensive abatement when abatement costs decline.

Fell, H. and R.D. Morgenstern (2009). "Alternative Approaches to Cost Containment in a Cap-and-Trade System." RFF Discussion Paper 09-14, April 2009.

Climate Change and Outdoor Recreation Resources

by Daniel Morris and Margaret Walls

- In this backgrounder, we look at the impacts these changes are likely to have on recreation resources in the United States. We focus our attention on freshwater resources, coastal areas, and public lands. Specifically, we assess the likely changes in snowmelt and the resulting impact on winter recreation activities; the impacts on streams and reservoirs and how they may affect recreational fishing and boating; and the impacts on noncoastal wetlands, which may impact hunting and wildlife viewing opportunities.

Morris, D. and M. Walls (2009). "Climate Change and Outdoor Recreation Resources." RFF Backgrounder, April 2009.

Prospects for Plug-in Hybrid Electric Vehicles in the United States and Japan: A General Equilibrium Analysis

by Valerie J. Karplus, Sergey Paltsev and John M. Reilly

- A representative vehicle technology that runs on electricity in addition to conventional fuels was introduced into the MIT Emissions Prediction and Policy Analysis (EPPA) model as a perfect substitute for internal combustion engine (ICE-only) vehicles in the United States and Japan. We investigate the effect of relative vehicle cost and all-electric range on the timing of PHEV market entry in the presence and absence of an advanced cellulosic biofuels technology and a strong (450ppm) economy-wide carbon constraint.

Karplus, V.J., S. Paltsev and J.M. Reilly (2009). "Prospects for Plug-in Hybrid Electric Vehicles in the United States and Japan: A General Equilibrium Analysis." Joint Program Report Series, Report 172, April 2009.

Sea-Level Rise and Storm Surges: a Comparative Analysis of Impacts in Developing Countries

by Susmita Dasgupta, Benoit Laplante, Siobhan Murray and David Wheeler

- An increase in sea surface temperature is evident at all latitudes and in all oceans. The current understanding is that ocean warming plays a major role in intensified cyclone activity and heightened storm surges. The vulnerability of coastlines to intensified storm surges can be ascertained by overlaying Geographic Information System information with data on land, population density, agriculture, urban extent, major cities, wetlands, and gross domestic product for inundation zones likely to experience more intense storms and a 1 meter sea-level rise. The results show severe impacts are likely to be limited to a relatively small number of countries and a cluster of large cities at the low end of the international income distribution.

Dasgupta, S., B. Laplante, S. Murray and D. Wheeler (2009). "Sea-Level Rise and Storm Surges: a Comparative Analysis of Impacts in Developing Countries." Policy Research working paper no. WPS 4901, April 2009.

Global Environment and Trade Policy

by Jeffrey Frankel

- The global climate regime, as represented by the Kyoto Protocol, may be on a collision course with the global trade policy regime, as represented by the WTO (World Trade Organization). Environmentalists fear that international trade will undercut efforts to reduce greenhouse gas (GHG) emissions as carbon-intensive production migrates to non-participating countries-a phenomenon known as leakage. Meanwhile businesspeople fear the adverse effects of disparate climate policies on their own competitiveness. This paper discusses how global environmental goals and trade goals can be reconciled.

Frankel, J. (2009). "Global Environment and Trade Policy." Belfer Center Discussion Harvard Kennedy School Paper Series Discussion Paper #09-01, April 2009.

Co-Benefits of Climate Policy

by J.C. Bollen, C.J. Brink, H.C. Eerens, A.J.G. Manders

- A stringent global climate policy will lead to considerable improvements in local air quality and consequently improves health. Measures to reduce emissions of greenhouse gases to 50% of 2005 levels, by 2050, can reduce the number of premature deaths from the chronic exposure to air pollution by 20 to 40%. Climate policy will already generate air quality improvements in the OECD countries (particularly in the US) in the mid-term, whereas in developing countries these benefits will only in the longer run show to be significant.

Bollen, J.C., C.J. Brink, H.C. Eerens and A.J.G. Manders (2009). "Co-Benefits of Climate Policy." PBL Report no. 500116005, April 2009.

Understanding Volatility Dynamics in the EU-ETS Market: Lessons from the Future

by María Eugenia Sanin and Francesco Violante

- In this paper we study the short term price behavior of December 2008 future prices for EU emission allowances. We model returns and volatility dynamics of this price showing that a standard ARMA-GARCH framework is not adequate and that the gaussianity assumption is rejected due to the occurrence of a number of level and volatility outliers. To improve the fitness of the model, we combine the underlying price process with an additive stochastic jump process.

Sanin, M.E. and F. Violante (2009). "Understanding Volatility Dynamics in the EU-ETS Market: Lessons from the Future." Core Discussion Paper 2009/24, April 2009.

Climate Feedbacks on the Terrestrial Biosphere and the Economics of Climate Policy: An Application of Fund

by Richard S. J. Tol

- Previous versions of the FUND model assumed that the carbon cycle is independent of climate change. I here introduce a feedback through which warming leads to higher net emissions. This increases the atmospheric concentration of carbon dioxide in the year 2100 by 100 (20-200) ppm. This leads to a higher estimate of the Pigou tax. The benefit of emission reduction now includes the direct benefits of lower emissions as well as the indirect benefits of a smaller feedback, but the latter effect is small.

Tol, R.S.J. (2009). "Climate Feedbacks on the Terrestrial Biosphere and the Economics of Climate Policy: An Application of Fund." ESRI Working Paper 288, April 2009.

Optimal Wind Power Deployment in Europe: a Portfolio Approach

by Fabien Roques, Céline Hiroux and Marcelo Saguan

- Geographic diversification of wind farms can smooth out the fluctuations in wind power generation and reduce the associated system balancing and reliability costs. The paper uses historical wind production data from five European countries (Austria, Denmark, France, Germany, and Spain) and applies Mean-Variance Portfolio theory to identify cross-country portfolios that minimize the total variance of wind production for a given level of production.

Roques, F. (2009). "Optimal Wind Power Deployment in Europe: a Portfolio Approach." Electricity Policy Research Group Working Paper EPRG0911, April 2009.

April 13, 2009

Energy Efficiency Economics and Policy

by Kenneth T. Gillingham, Richard G. Newell and Karen L. Palmer

- We review economic concepts underlying consumer decisionmaking in energy efficiency and conservation and examine related empirical literature. In particular, we provide an economic perspective on the range of market barriers, market failures, and behavioral failures that have been cited in the energy efficiency context. We assess the extent to which these conditions provide a motivation for policy intervention in energy-using product markets, including an examination of the evidence on policy effectiveness and cost.

Gillingham, K.T., R.G. Newell and K.L. Palmer (2009). "Energy Efficiency Economics and Policy." RFF Discussion Paper 09-13, April 2009.

Adapting to Climate Change: Towards a European Framework for Action

by the European Commission

- This White Paper sets out a framework to reduce the EU’s vulnerability to the impact of climate change. It builds on the wide-ranging consultation launched in 2007 by the Green Paper on Adapting to Climate Change in Europe and further research efforts that identified action to be taken in the short-term.

European Commission (2009). "Adapting to Climate Change: Towards a European Framework for Action." COM 147/4, April 2009.

Sequential versus Simultaneous Contributions to Public Goods: Experimental Evidence

by Simon Gachter, Daniele Nosenzo, Elke Renner and Martin Sefton

- We report an experiment comparing sequential and simultaneous contributions to a public good in a quasi-linear two-person setting. Our findings support the theoretical argument that sequential contributions result in lower overall provision than simultaneous contributions. Late contributors are sometimes willing to punish early low contributors by contributing less than their best response. This induces early contributors to contribute more than they otherwise would. A consequence of this is that we fail to observe a predicted first mover advantage.

Gachter, S., D. Nosenzo, E. Renner and M. Sefton (2009). "Sequential versus Simultaneous Contributions to Public Goods: Experimental Evidence." CESifo Working Paper No. 2602, April 2009.

Energy, the Environment, and Technological Change

by David Popp, Richard G. Newell, and Adam B. Jaffe

- This chapter reviews the literature on technological change and the environment. Our goals are to introduce technological change economists to how the lessons of the economics of technological change have been applied in the field of environmental economics, and suggest ways in which scholars of technological change could contribute to the field of environmental economics.

Popp, D., R.G. Newell and A.B. Jaffe (2009). "Energy, the Environment, and Technological Change." NBER Working Paper No. 14832, April 2009.

A Partial Adjustment Model of U.S. Electricity Demand by Region, Season, and Sector

by Erica Myers, Karen L. Palmer and Anthony Paul

- This paper estimates electricity demand functions with particular attention paid to the demand stickiness that is imposed by the capital-intensive nature of electricity consumption and to regional, seasonal, and sectoral variation. The analysis uses a partial adjustment model of electricity demand that is estimated in a fixed-effects OLS framework.

Myers, E., K.L. Palmer and A. Paul (2009). "A Partial Adjustment Model of U.S. Electricity Demand by Region, Season, and Sector." RFF Discussion Paper 08-50, April 2009.

Should the Obama Administration Implement a CO2 Tax?

by Ian W.H. Parry

- There is an overwhelming economic case for the Obama administration to impose, as soon as possible, a price on carbon dioxide (CO2) and other greenhouse gas (GHG) emissions. But how high should the price be? Should it be implemented through an emissions tax or a cap-and-trade system? And how should the
policy be designed?

Parry, I.W.H. (2009). "Should the Obama Administration Implement a CO2 Tax?" Resources for the Future, IB 09-05, April 2009.

The Impact of Climate Change on Aquatic Risk from Agricultural Pesticides in the US

by Nikolinka G. Koleva and Uwe A. Schneider

- Agricultural pesticides have adverse impacts on water quality and aquatic species. These impacts are sensitive to climate because pest pressure and corresponding pesticide application rates vary with weather and climate conditions. In this paper, we investigate how climate change affects the acute and chronic toxicity risk to algae, daphnia, and fish from the ten most hazardous pesticides in twelve coastal states of the US.

Koleva, N.G. and U.A. Schneider (2009). "The Impact of Climate Change on Aquatic Risk from Agricultural Pesticides in the US." Hamburg University and Centre for Marine and Atmospheric Science, Working Paper FNU-173, April 2009.

Economic Optimality of CCS Use: A Resource-Economic Model

by Daiju Narita

- The paper is to provide a perspective on future cost-benefit discussions of CCS by highlighting the optimality of CCS use viewed as a non-renewable resource with a limited capacity. Scarcity of CCS (storage) capacity should involve a shadow price which could raise CCS’s effective price. By using a simple analytical dynamic optimization model, we examine the optimal paths of CCS use, CCS’s real price inclusive of the shadow price, and their difference from the operational price.

Narita, D. (2009). "Economic Optimality of CCS Use: A Resource-Economic Model." Kiel Institute for the World Economy, Working Paper No. 1508, April 2009.

On Cleaner Technologies in a Transboundary Pollution Game

by H. Benchekroun and A. Ray Chaudhuri

- We show that in a non-cooperative transboundary pollution game, a cleaner technology (i.e., a decrease in the emission to output ratio) induces each country to increase its emissions and ultimately can yield a higher level of pollution and reduce social welfare.

Benchekroun, H. and A. Ray Chaudhuri (2009). "On Cleaner Technologies in a Transboundary Pollution Game." CentER Discussion Paper Number 2009-23, April 2009.

The Annual Energy Outlook 2009

by the Energy Information Agency

- The Annual Energy Outlook 2009 (AEO2009) presents projections and analysis of US energy supply, demand, and prices through 2030. The projections are based on results from the Energy Information Administration's National Energy Modeling System. The AEO2009 includes the reference case, additional cases examining energy markets, and complete documentation.

EIA (2009). "The Annual Energy Outlook 2009." DOE/EIA-0383, March 2009. Full Report 4.5M Executive Summary Index

Factor-Augmenting Technical Change: An Empirical Assessment

by Enrica De Cian

- This paper provides additional estimates for the substitution possibilities among inputs and it offers new empirical evidence on the direction and sources of factor-augmenting technical change, an issue that has not yet been explored by the empirical literature on growth determinants. The empirical findings suggest that technical change is directed. Technical change tends to be more energy-saving than capital- and labour-saving.

De Cian, E. (2009). "Factor-Augmenting Technical Change: An Empirical Assessment." FEEM Nota di Lavoro 18.09, March 2009.

Unintended Impacts of Multiple Instruments on Technology Adoption

by Jessica Coria

- There are many situations where environmental authorities use a mix of environmental policy instruments, rather than one single instrument, to address environmental concerns. Very little work has been done on the economic impacts of the application of multiple instruments. This paper investigates the unintended impacts of the interaction of a tradable permits scheme with direct seasonal regulations on the rate of adoption of advanced abatement technologies.

Coria, J. (2009). "Unintended Impacts of Multiple Instruments on Technology Adoption." RFF Discussion Paper EfD 09-06, March 2009.

Subsidies for CDM: Past Experiences with Capacity Building

by Yuri Okubo and Axel Michaelowa

- Given the lack of CDM activities in least developed countries, subsidization of CDM projects has been suggested as a remedy. We assess these subsidies for CDM with regard to their effectiveness in mobilizing institutional set up and project development. We find that targeted capacity building programs, such as establishment of the Designated National Authority have been successful, but project development support did not really deliver in most of the countries.

Okubo, Y. and A. Michaelowa (2009). "Subsidies for CDM: Past Experiences with Capacity Building." March 2009.

Would Preferential Access to the EU ETS be Sufficient to Overcome Current Barriers to CDM Projects in LDCs?

by Paula Castro and Axel Michaelowa

- We try to answer the question whether preferential access to the carbon market is sufficient to overcome current barriers to CDM development in Least Developed Countries (LDCs). We first discuss the current status and a potential future supply of CDM projects in LDCs, and the barriers limiting CDM development in these countries. The new EU climate and energy package grants some limited preferential access to CERs from LDCs and allows restrictions to CER imports on the basis of quality considerations. Taking these policy options into account, we develop possible CER supply and demand scenarios for the period 2013-2020, in order to quantitatively assess their impact on CER supply from LDCs.

Castro, P. and A. Michaelowa (2009). "Would Preferential Access to the EU ETS be Sufficient to Overcome Current Barriers to CDM Projects in LDCs?" Climate Strategies, March 2009.

Additionality in the Clean Development Mechanism Why and What?

by Benito Müller

- The rules of the Kyoto Protocol Clean Development Mechanism (CDM) stipulate that activities which would (have) occur(ed) in the absence of the CDM should not be certified as offsets in the form of Certified Emission Reductions (CERs). Why should this be so? By far the most common justification in defence of CDM additionality is that it protects the environmental integrity of the regime. However, this paper observes that, in certain cases, there are indeed reasons for introducing additionality, and in others, reasons for rejecting it.

Müller, B. (2009). "Additionality in the Clean Development Mechanism Why and What?" Oxford Institute for Energy Studies EV 44, March 2009.

Discounting of CERs to Avoid CER Import Caps

by Axel Michaelowa

- To make the CDM palatable to policymakers and to avoid a blunt, inefficient capping of CER imports, a discount could be introduced, so that one t of emissions reductions from a CDM project would yield less than one Certified Emission Reduction (CER). A discount factor that increases with the level of development of a country would reflect the principle of common but differentiated responsibilities. The short-term price that would have to be paid in terms of economic efficiency would be a differentiation of marginal abatement cost of CDM projects according to the discount rate. This would however be offset by the improved overall efficiency of emissions reduction due to a higher EU import of CERs.


Michaelowa, A. (2009). "Discounting of CERs to Avoid CER Import Caps." Climate Strategies, December 2008.

Measuring the Impacts of Sea Level Rise on Marine Recreational Shore Fishing in North Carolina

by John C. Whitehead, Ben Poulter, Christopher F. Dumas and Okmyung Bin

- We develop estimates of the economic effects of sea level rise on marine recreational shore fishing in North Carolina. We estimate the relationship between angler behavior and spatial differences in beach width using the Marine Recreational Fishing Statistics Survey and geospatial data. We exploit the empirical relationship between beach width and site choice by simulating the effects of (1) sea level rise on beach width and (2) beach width on angler site choice. We find that the welfare losses are potentially substantial, ranging up to a present value of $1.26 billion over 75 years.

Whitehead, J.C., B. Poulter, C.F. Dumas and O. Bin (2009). "Measuring the Impacts of Sea Level Rise on Marine Recreational Shore Fishing in North Carolina." Working Papers from Department of Economics, No 08-09, Appalachian State University, May 2008.

April 1, 2009

Addressing Price Volatility in Climate Change Legislation

by Dallas Burtraw

- A symmetric safety valve can be expected to lower price volatility in a cap-and-trade program. It can be expected to lower the hurdle rate for new investments in innovative technology, thereby reducing the overall cost of the program. And it provides a safeguard against potential manipulation of the market by limiting the potential payoff to such behavior. Whether the choice is a cap or a tax, it would be a mistake to adopt an inflexible policy. Both can be designed to automatically adjust to information about program performance, according to decision rules that can be transparent to investors.

Burtraw, D. (2009). "Addressing Price Volatility in Climate Change Legislation." U.S. House of Representatives Committee on Ways and Means, March 26, 2009.

Docking into a Global Carbon Market: Clean Investment Budgets to Finance Low-Carbon Economic Development

by Gernot Wagner, Nathaniel O. Keohane, Annie Petsonk and James Wang

- Financing the transition to low-carbon economic development must be the focus of any framework to encourage developing countries' participation in the global carbon market. It needs to do so with the aim of eventual full participation in carbon markets while maintaining the core market's integrity and meeting the environmental goal of avoiding long-term warming in excess of 2 degrees C above pre-industrial levels. This paper proposes a mechanism to achieve these goals: Clean Investment Budgets (CIBs).

Wagner, G., N.O. Keohane, A. Petsonk and J. Wang (2009). "Docking into a Global Carbon Market: Clean Investment Budgets to Finance Low-Carbon Economic Development." Forthcoming in The Economis and Politics of Climate Change, Oxford University Press, 2009. Available at SSRN.

Towards a Global Green Recovery Recommendations for Immediate G20 Action

by Ottmar Edenhofer and Nicholas Stern

- To re-start growth, ambitious fiscal stimulus measures have been announced in most G20 member countries and further measures are under consideration. Additional measures should be timely, well targeted, and taken within a clear long-term framework if they are to help lay the foundations of sustainable growth in the medium and long term without threatening fiscal sustainability when recovery comes. Public spending aimed at stimulating private investments that help reducing greenhouse gas emissions can perform very well against these criteria for an effective stimulus, while providing the additional benefits of lower energy costs and increased energy security.

Edenhofer, O. and N. Stern (2009). "Towards a Global Green Recovery Recommendations for Immediate G20 Action." April 2009.

Natural Disasters and Human Capital Accumulation

by Jesus Crespo Cuaresma

- The author assesses empirically the relationship between natural disaster risk and investment in education. Although the results in the empirical literature tend to be inconclusive, using model averaging methods in the framework of cross-country and panel regressions, this paper finds an extremely robust negative partial correlation between secondary school enrollment and natural disaster risk.

Cuaresma, J.C. (2009). "Natural Disasters and Human Capital Accumulation." Policy Research Working Paper no. WPS 4862, March 2009.

Welfare Impacts of Rural Electrification: A Case Study from Bangladesh

by Shahidur R. Khandker, Douglas F. Barnes, Hussain A. Samad

- Using a cross-sectional survey conducted in 2005 of some 20,000 households in rural Bangladesh, this paper studies the welfare impacts of households' grid connectivity. Based on rigorous econometric estimation techniques, this study finds that grid electrification has significant positive impacts on households' income, expenditure, and educational outcomes.

Khandker, S.R., D.F. Barnes, H.A. Samad (2009). "Welfare Impacts of Rural Electrification: A Case Study from Bangladesh." Policy Research Working Paper no. WPS 4859, March 2009.

Domestic Energy Efficiency Measures, Adopter Heterogeneity and Policies to Induce Diffusion

by Ivan Diaz-Rainey and John K. Ashton

- Programmes for carbon emissions reductions invariably require households to adopt energy efficiency measures such as heating controls. Thus understanding why households adopt efficiency measures and what policies can successfully increase their adoption (induced diffusion), is critically to energy policy. This study addresses these questions by developing research hypotheses grounded in diffusion and finance theory, and the literature on the barriers to energy efficiency.

Diaz-Rainey, Ivan and J.K. Ashton (2009). "Domestic Energy Efficiency Measures, Adopter Heterogeneity and Policies to Induce Diffusion." Available at SSRN, March 2009.

What's Driving Sustainable Energy Consumption? A Survey of the Empirical Literature

by Bettina Brohmann, Steffanie Heinzle, Klaus Rennings, Joachim Schleich and Rolf Wüstenhagen

- The focus of the paper is on the individual decision of energy consumers, and it's relation to sustainable consumption. Consumer behavior is based on individual decisions, but it depends largely on supply-side measures and an appropriate infrastructure (e.g. the availability of energy-efficient household equipment) and on socio-political factors (e.g. if systems of emissions trading or eco-labels exist). We derive some hypotheses on the determinants of sustainable energy consumption in residential buildings from a review of the empirical literature on the diffusion of energy efficient activities.

Brohmann, B., S. Heinzle, K. Rennings, J. Schleich and R. Wüstenhagen (2009). "What's Driving Sustainable Energy Consumption? A Survey of the Empirical Literature." ZEW Discussion Paper No. 09-013, March 2009.

What Drives the Efficiency of Hard Coal Fuelled Electricity Generation? An Empirical Assessment

by Tim Hoffmann and Sebastian Voigt

- The efficiency of electricity generation in hard coal fired power plants varies considerably from country to country and over time. These differences occur both between developing and developed countries and between industrialised nations. The econometric analysis presented in this paper tests for the reasons of these discrepancies.

Hoffmann, T. and S. Voigt (2009). "What Drives the Efficiency of Hard Coal Fuelled Electricity Generation? An Empirical Assessment." ZEW Discussion Paper No. 09-011, March 2009.