Article
Engineering, Industrial
Moutaz Khouja, Xin Liu
Summary: In the context of retail, offering price adjustment protection policies does not decrease revenue for perishable products and can even increase revenue when consumers behave strategically. The impact of price adjustment protection on revenue varies with different levels of demand realization, showing a larger positive effect when a higher proportion of consumers exhibit strategic behaviors and optimistic attitudes.
INTERNATIONAL JOURNAL OF PRODUCTION ECONOMICS
(2021)
Article
Economics
Danilo V. Mascia, Enrico Onali
Summary: We estimate the impact of the Cap-and-Trade Program (CATP) in California on regional greenhouse gas emissions and economic growth. Our preferred identification strategies, based on spatial distance and county-level contiguity, do not show a reduction in regional emissions or economic growth due to the CATP. Multi-state organizations do not transfer emissions to non-Californian facilities, but there is a change in emissions concentration at the parent level, indicating a previously unexplored form of regulatory arbitrage. Overall, the study emphasizes the importance of a regional approach in designing climate policies and evaluating their effects.
Article
Environmental Studies
Innocent Okwanya, Patricia O. Abah, Eje-Ojeka G. Amaka, Ilhan Ozturk, Abdulkareem Alhassan, Festus Victor Bekun
Summary: This study investigates the asymmetric effect of oil price changes on CO2 emissions in 30 African countries from 1987 to 2019. Using the panel non-linear autoregressive distributive lag (NARDL) methodology, the study finds that positive changes in oil price lead to a reduction in CO2 emissions, while negative changes result in an increase in CO2 emissions across the panel countries. The study suggests strengthening efforts to reduce carbon emissions, particularly in oil-exporting countries, as oil price alone is not sufficient to mitigate CO2 emissions on the continent.
Article
Computer Science, Interdisciplinary Applications
Xiaoyuan Qi, Ying Han
Summary: This study examines the impact of uncertainty in technological innovation on the decision to engage in intertemporal carbon trading. The findings show that the uncertainty of technological innovation significantly affects the decision to engage in intertemporal carbon trading. Enterprise productivity is directly correlated with technological innovation for emission reduction. The probability of technological innovation for emission reduction is inversely related to the intertemporal trading banking rate and the price of carbon tax per unit product, while it is proportional to the intertemporal trading borrowing rate.
COMPUTERS & INDUSTRIAL ENGINEERING
(2023)
Article
Economics
Robin Greenwood, Samuel Hanson, Jeremy C. Stein, Adi Sunderam
Summary: We propose a model that examines the impact of shocks to the supply and demand of long-term bonds in two currencies on exchange rates and bond term premia. Our model successfully explains empirical patterns such as the comovement between exchange rates and term premia, as well as the influence of central banks' quantitative easing policies on exchange rates. Furthermore, our model extends the understanding of the relationship between spot exchange rates and deviations from covered interest rate parity since 2008.
QUARTERLY JOURNAL OF ECONOMICS
(2023)
Article
Economics
Hongshan Ai, Zhengqing Zhou, Ke Li, Zhi-Yong Kang
Summary: The Chinese government implemented a desulfurization subsidy policy for on-grid tariffs to reduce SO2 emissions from coal-fired power plants, effectively motivating enterprises to upgrade desulfurization facilities. This policy performs better in regions with higher marketization and underdevelopment.
Article
Environmental Studies
Aleksandar Zaklan, Jakob Wachsmuth, Vicki Duscha
Summary: The study suggests that the EU must decrease the annual emissions cap much faster over the next decade in order to achieve the 1.5 degrees C target set by the Paris Agreement. Adjusting the EU ETS cap to align with renewable energy, energy efficiency targets, and coal phase-out policies can lead to a smoother and more credible emission reduction pathway.
Article
Biodiversity Conservation
Jianbo Hu, Hang Chen, Faustino Dinis, Gang Xiang
Summary: Compared to advanced economies, China faces challenges in reducing CO2 emissions due to lower income level and unbalanced energy structure. Building a long-term mechanism for financing sustainable industries and reducing CO2 emissions is crucial. Green finance and green fiscal policy are essential instruments for financing a green economy, closely related to technological innovation and CO2 emissions reduction.
ECOLOGICAL INDICATORS
(2023)
Article
Environmental Sciences
Adam Finch, Jeroen van den Bergh
Summary: Many countries have implemented carbon pricing in the form of a tax or market, but the authenticity of the carbon prices is low. The carbon prices published by sources such as the World Bank provide a misleading representation of the actual national policy pressure on emissions. There are significant differences between the average carbon price and the advertised price, and implicit carbon prices dominate explicit ones for most countries.
GLOBAL ENVIRONMENTAL CHANGE-HUMAN AND POLICY DIMENSIONS
(2022)
Article
Green & Sustainable Science & Technology
Caiting Wang, Liukai Wang, Weiqing Wang, Yu Xiong, Cheng Du
Summary: Carbon trading can help solve global warming by incentivizing companies to optimize production and innovate through the trade of carbon emissions as commodities.
JOURNAL OF CLEANER PRODUCTION
(2023)
Article
Green & Sustainable Science & Technology
Kaleab Woldeyohannes Yirgu, Amy M. Kim
Summary: The impact of price-based environmental policies on aviation emissions is not expected to be consistent across different airports. This study found that airfare has a minimal effect on overall emissions, with a slightly higher impact observed at smaller airports compared to larger ones.
JOURNAL OF CLEANER PRODUCTION
(2023)
Article
Green & Sustainable Science & Technology
Arezou Entezaminia, Ali Gharbi, Mustapha Ouhimmou
Summary: Manufacturing systems are major carbon emitters and are regulated by governments to control emissions. Cap-and-trade is an efficient regulation where tradable allowances are given to emitters. This study focuses on developing a joint production and trading control policy for unreliable manufacturing systems under cap-and-trade regulation to minimize costs and reduce emissions.
JOURNAL OF CLEANER PRODUCTION
(2021)
Article
Ecology
Jorge Goncalves, Manuel Lufs Costa
Summary: This paper analyzes the influence of ecological economics (EE) in the European Union (EU) political agenda, specifically the agenda-setting dynamics of the cap-and-trade (CAT) EE policy concept. The study finds that EE had a moderate and intermittent impact on the EU political agenda, with neoclassical economics views dominating EU policy. The rise of the CAT policy in the EU was influenced by the political context around the Kyoto Protocol, the agency of EU actors, and the flexible framing among stakeholders. The study suggests that integrating political economy aspects into EE theory would benefit its future development.
ECOLOGICAL ECONOMICS
(2022)
Article
Business
Walid Ben-Amar, Mathieu Gomes, Hania Khursheed, Sylvain Marsat
Summary: Governments and corporations are facing increasing pressure to manage climate-related business risks and reduce their carbon footprint. This study finds that firm-level climate change exposure is significantly and positively related to the likelihood of adopting internal carbon pricing (ICP) programs. The probability of adoption is largely linked to regulatory shocks and opportunity exposure. Furthermore, board independence moderates the relation between climate change exposure and ICP adoption.
BUSINESS STRATEGY AND THE ENVIRONMENT
(2022)
Article
Business
Boshi Tian, Runzhu Han, Jia Zhang, Jiahuan Song, Cong Liao
Summary: In order to respond effectively to the deferred purchase of strategic consumers, online retailers have introduced the price adjustment protection (PAP) policy to improve consumers' shopping experience. This paper constructs two types of two-period decision-making models based on whether the online retailer provides the price adjustment protection insurance (PAPI) policy, and studies the online retailer's pricing and insurance strategy using the Stackelberg game theory. The study obtains the online retailer's optimal pricing strategy in PAP and PAPI respectively. Furthermore, considering the insurer's maximum profit, the optimal insurance strategy of the online retailer in PAP and PAPI is derived. Finally, conditions that affect the online retailer's insurance strategy in terms of the premium, the proportion of consumers applying for compensation, and the consumer's inter-temporal discount factor are presented when the insurer profits from the PAPI policy. The management implication suggests that online retailers should choose a win-win insurance strategy with insurers based on the proportion of consumers applying for compensation and their strategic level.
ELECTRONIC COMMERCE RESEARCH
(2023)
Article
Business, Finance
Bangzhu Zhu, Ping Wang, Julien Chevallier, Yi-Ming Wei
Summary: This paper proposes a multiscale value-at-risk (VaR) approach based on ensemble empirical mode decomposition (EEMD) to accurately measure the risk on the European carbon market. By decomposing the carbon price return into intrinsic mode functions (IMFs) with different timescales and using conditional variances and exponentially weighted moving average, the proposed approach can provide a more comprehensive understanding of the risk fluctuation characteristics in the carbon market.
INTERNATIONAL JOURNAL OF FINANCE & ECONOMICS
(2023)
Article
Mathematics
Yingchao Zou, Kaijian He
Summary: In this paper, a new multivariate empirical decomposition convolutional neural network model is proposed to incorporate the external influence of financial markets into the modeling of crude oil market risk movement. The model combines the multivariate empirical model decomposition and the convolutional neural network to improve risk forecasting accuracy.
Article
Economics
Shenggang Ren, Xuanyu Yang, Yucai Hu, Julien Chevallier
Summary: This paper investigates the effects of China's market-based carbon emissions trading scheme (ETS) on firm innovation and environmental and economic performance. The results show that the pilot ETS is positively correlated with firm environmental and economic performance, especially in regions with stricter emissions caps. Additionally, the pilot ETS is also positively correlated with firm innovation, and this innovation significantly improves firm environmental and economic performance.
Article
Economics
Yucai Hu, Ranran Li, Lei Du, Shenggang Ren, Julien Chevallier
Summary: Based on China's pilots of SO2 ETS and CO2 ETS, this study finds that these policies have effectively reduced SO2 and CO2 emissions, and the CO2 ETS has achieved co-benefits by reducing SO2 emissions. However, the effectiveness of SO2 ETS in reducing CO2 emissions is limited due to the maturity of SO2 capture technologies.
Article
Mathematics
Kaijian He, Don Wu, Yingchao Zou
Summary: This paper introduces a tourist arrival forecasting model that utilizes multiscale data features by modeling different scales of data features with Mode Decomposition models and Convolutional Neural Network, improving the reliability and accuracy of tourist arrival forecasting.
Article
Business, Finance
Wang Chen, Julien Chevallier, Jiqian Wang, Juandan Zhong
Summary: An increasing number of studies suggest that oil volatility information is effective in forecasting equity premiums. This study introduces a new predictor, RSJV, which uses the realized semi-variance framework to measure the proportion of upward (downward) variance on a specific trading day. The results demonstrate that RSJV outperforms 14 popular macroeconomic indicators and the inclusion of economic constraints improves the accuracy of return predictability.
FINANCE RESEARCH LETTERS
(2022)
Article
Business, Finance
Feng Ma, Yangli Guo, Julien Chevallier, Dengshi Huang
Summary: This study predicts stock volatility using macroeconomic attention indices and category-specific economic policy uncertainty indices. The results show that the combination of these indices provides additional information for predicting stock market volatility. The comprehensive index has the strongest short-term forecasting ability, while the macroeconomic attention indices show the most substantial forecasting ability in long-term forecasting.
INTERNATIONAL REVIEW OF FINANCIAL ANALYSIS
(2022)
Article
Business, Finance
Yan Li, Yigang Wei, Hanxiao Xu, Huanwen Liu, Julien Chevallier
Summary: This study aims to analyze the spatial and temporal characteristics of pollutant transfer between China and India, finding that China is a net exporter of pollutants and India is a net importer, with carbon monoxide being the most significant pollutant.
Article
Economics
Bangzhu Zhu, Jingyi Zhang, Chunzhuo Wan, Julien Chevallier, Ping Wang
Summary: This paper proposes a novel evolutionary cost-sensitive support vector machine (CSSVM) method for carbon price trend prediction. By addressing the imbalanced characteristics in the data, the proposed method achieves higher classification accuracy and reduces misclassification costs compared to other popular prediction models. The empirical results using samples from carbon markets in Beijing, Hubei, and Guangdong demonstrate the effectiveness and robustness of the proposed approach.
JOURNAL OF FORECASTING
(2023)
Article
Economics
Feng Ma, M. I. M. Wahab, Julien Chevallier, Ziyang Li
Summary: This study examines the impacts of overnight and intraday oil futures cross-market information on predicting the US stock market volatility using high-frequency data. The results show that high overnight oil futures RV can predict high RV of the S&P 500, indicating the existence of the leverage effect. Additionally, the decompositions of overnight oil futures and intraday RVs based on signed intraday returns significantly increase the predictive ability of the models. Furthermore, these decompositions are still useful in predicting volatility, especially during high US stock market fluctuations and high and low economic policy uncertainty (EPU) states.
JOURNAL OF FORECASTING
(2023)
Article
Economics
Yelin Wang, Ping Yang, Zan Song, Julien Chevallier, Qingtai Xiao
Summary: CO2 emissions contribute to global warming and are characterized by high-noise, non-stationary, and nonlinear systems. An accurate prediction method for annual CO2 emissions is crucial for improving emission reduction policies. This study proposes a novel hybrid prediction model using data decomposition mode for annual CO2 emissions. Verification using representative CO2 emissions data from five countries (China, United States, India, Russian, and Japan) shows that the proposed model achieves an average prediction accuracy of 97.95%, surpassing other methods by more than 1.61%. The model serves as a reliable tool for policymakers and regulators to adjust reduction measures and assess current effects.
COMPUTATIONAL ECONOMICS
(2023)
Article
Economics
Jiqian Wang, Xiaozhu Guo, Xueping Tan, Julien Chevallier, Feng Ma
Summary: This study uses 45 exogenous drivers to improve the accuracy of EUA volatility forecasting. Different predictive regression methods, including individual factor analysis, combination forecast method, diffusion index model, and supervised learning method, are applied to generate monthly volatility forecasts. The findings reveal that the diffusion index model and combination forecast method have minimal impact on EUA volatility due to the poor forecasting performance of individual factors, while the supervised learning method can predict EUA volatility successfully. Additionally, the WilderHill new energy global innovation index, Euro corporate bond return spread, GSCI gold index, and Euro Area government bond yield spread have significant influence on EUA volatility in terms of individual factor analysis, variable selection frequency, and factor importance.
Article
Economics
Yigang Wei, Xin Liang, Liang Xu, Gang Kou, Julien Chevallier
Summary: The study provides firm-level evidence of regulated firms’ strategic responses under the Shanghai ETS and proposes a model to simulate trading interactions among diversified firms. The results indicate non-monotonic L-shaped trend in carbon prices, increased trading activity with higher carbon prices, and limitations in the current ETS penalty. Policy suggestions are provided for optimizing the ETS mechanism.
Article
Mathematics
Kaijian He, Qian Yang, Lei Ji, Jingcheng Pan, Yingchao Zou
Summary: With the continuous development of financial markets worldwide, there has been increasing recognition of the importance of financial time series forecasting in operation and management. This paper proposes a new financial time series forecasting model based on the deep learning ensemble model, combining CNN, LSTM, and ARMA. Empirical results show that the proposed model achieved superior performance in terms of accuracy and robustness compared to benchmark individual models.
Article
Business, Finance
Yan Li, Yigang Wei, Hanxiao Xu, Huanwen Liu, Julien Chevallier
Summary: This study uses a multiregional input-output model to analyze the spatial and temporal characteristics of pollutant transfer in bilateral trade between China and India. The findings show that China is a net exporter of pollutants and CO is the most emitted pollutant in the bilateral trade. Moreover, energy intensity has adverse effects on pollutant emissions, while consumption scale has overall positive effects.
Article
Economics
Marie-Louise Arlt, David Chassin, Claudio Rivetta, James Sweeney
Summary: This paper examines the impact of real-time pricing and load automation on residential distribution systems. The study finds that implementing real-time pricing can result in an aggregate welfare gain of 39 USD per customer and year. However, it also notes that RTP and load automation may significantly increase peak system load. Introducing a market-based demand management system can further enhance welfare gains and reduce grid investment.
Article
Economics
Javier Jorquera-Copier, Alvaro Lorca, Enzo Sauma, Stefan Lorenczik, Matias Negrete-Pincetic
Summary: As countries update their climate ambitions, low-carbon hydrogen production and use present opportunities for emissions reductions and economic development. A case study for Chile shows that integrating hydrogen and electricity networks can lower system costs and enhance renewable integration, but policy support is needed to address concerns related to water and land use.
Article
Economics
Dawit Guta, Hisham Zerriffi, Jill Baumgartner, Abhishek Jain, Sunil Mani, Darby Jack, Ellison Carter, Guofeng Shen, Jennifer Orgill-Meyer, Joshua Rosenthal, Katherine Dickinson, Rob Bailis, Yuta Masuda
Summary: Household solid fuel use is detrimental to health and the environment. The Indian government's PMUY subsidy has successfully promoted the adoption of LPG by millions of households. However, there is limited understanding of the decision-making process to reduce solid fuel use after transitioning to cleaner fuels. This study found that factors such as household wealth, social status, education level, and the prevalence of LPG use in the village are positively associated with LPG consumption and the discontinuation of solid fuel use. On the other hand, factors such as distance to LPG refill delivery, household size, and the PMUY subsidy are negatively associated with the share of LPG use.
Article
Economics
Nicolas Morell-Dameto, Jose Pablo Chaves-Avila, Tomas Gomez San Roman, Pablo Duenas-Martinez, Tim Schittekatte
Summary: This paper assesses the performance of differently implemented forward-looking network tariff designs and proposes an innovative coordination mechanism to increase predictability in a future with many flexible customers. The study reveals that if large shares of customers synchronize their responses to highly time-varying and locational-specific network charges, it can lead to unexpected reinforcements.
Article
Economics
Alexandra Gritz, Guntram Wolff
Summary: Russia's weaponization of gas supplies shook the energy security of Central and Eastern Europe in 2022. The region responded by increasing alternative energy supplies and developing new gas supply routes. Renewable energy, nuclear energy, and hydrogen play important roles in the long-term. Mitigating the impact of this shock requires the EU to prioritize the integrity of its energy market.
Article
Economics
Jaroslaw Kantorowicz, Marion Collewet, Matthew DiGiuseppe, Hendrik Vrijburg
Summary: Economic costs are a major political obstacle to investing in climate change mitigation and adaptation measures. The method of financing plays a crucial role in determining public opposition to government green investments, with debt financing being less opposed than broad-based taxes. This study suggests that credit market tools, such as green bonds and debt for climate swaps, can be politically efficient in increasing support for green financing. Carbon taxes and wealth taxes are found to be the most preferred options.
Article
Economics
Kun Guo, Liyuan Luan, Xiaoli Cai, Dayong Zhang, Qiang Ji
Summary: This paper investigates China's energy trade stability using a survival analysis approach. It finds that the energy trade linkages between China and 153 other countries are complex and unstable, with short periods of trade with many countries. Geopolitically risky regions, such as the Middle East and Africa, have the lowest trade stability. Climate risks have significant effects on energy trade stability. The paper proposes several policy options to improve energy trade stability in China, with special attention to increasing global climate risks.
Article
Economics
Simona Bigerna, Piyush Choudhary, Nikunj Kumar Jain, Silvia Micheli, Paolo Polinori
Summary: This study estimates the willingness to pay of Indian urban consumers for a continuous supply of electricity using contingent valuation method. The findings show that the amount consumers are willing to pay depends on the duration of power outages, with households preferring shorter outages. Income and environmental attitude also positively influence higher willingness to pay. These insights can inform policymakers in designing more reliable and customer-centric energy generation and distribution models.
Article
Economics
Temilade Sesan, Unico Uduka, Lucy Baker, Okechukwu Ugwu, Ewah Eleri, Subhes Bhattacharyya
Summary: This study examines the impact of the regulatory framework on rural electrification and universal energy access goals in Nigeria's mini-grid sector. The findings suggest that while the current framework has fostered sector growth, additional measures are necessary to ensure equitable distribution of access among rural populations.
Article
Economics
Rui Shan, Noah Kittner
Summary: Energy storage is a cornerstone in decarbonization planning as it reduces operational costs and greenhouse gas emissions, while enhancing resilience and renewables integration. However, storage developers in different regions have varying economic and environmental considerations, thereby requiring policy intervention to achieve long-term emission reductions.
Article
Economics
Tung Durmaz, Sevil Acar, Simay Kizilkaya
Summary: This study investigates the phenomenon of strategic capacity withholding in the Turkish electricity market and its relationship with the capacity remuneration mechanism. The empirical results provide strong evidence of strategic capacity withholding and show that the capacity mechanism contributes to the duration of failures. The study offers important insights for policymakers, including the implementation of a random verification mechanism and restructuring of the capacity mechanism in Turkey.
Article
Economics
Tii N. Nchofoung
Summary: The study finds that oil price shocks have a negative impact on Africa's energy transition, particularly in rural areas and net crude oil exporting countries. However, oil price shocks cannot explain the urban-rural differences in clean energy access. Therefore, increasing investment in clean energy and technologies in rural areas is necessary to enhance the resilience of the energy sector to oil price shocks.
Article
Economics
Najia Saqib, Muhammad Usman, Ilhan Ozturk, Arshian Sharif
Summary: This study examines the impact of environmental technologies, financial growth, and energy use on ecological footprint and green growth. Environmental innovation and renewable energy deployment contribute to green growth, while financial expansion and non-renewable energy use have negative effects on the environment. The study also identifies causal relationships between different factors.
Article
Economics
Yessica C. Y. Chung, Noxolo Kunene, Hung-Hao Chang
Summary: The Renewable Energy Certificate (REC) is considered an innovative technology for building a green society. This study investigates the impact of REC purchases on stock return and volume in Taiwan between 2017 and 2021. The findings suggest that REC purchases have a positive effect on stock returns of manufacturing firms but not service firms. The frequency of REC purchases is also an important factor in the relationship between REC purchase and firm value. Additionally, the study reveals that public attention to environmental pollution plays a crucial role in positive stock returns and volume, while ESG disclosure is negatively associated with returns and volume.
Article
Economics
Seife Ayele, Wei Shen, Yacob Mulugetta, Tadesse Kuma Worako
Summary: This paper addresses the challenges of governing energy procurement from a mix of non-hydropower renewable energy sources supplied by independent producers. Building on political economy analysis and five case studies of independent producer projects from Ethiopia, it seeks to understand the root causes of the protracted delays and limited extent of procurement by independent producers. The key contestations lie in managing long term contracts, risk, uncertainty and in developing the institutional and human capacity to transition.
