The European Union (EU) has targeted the adoption of environmentally-friendly public transportation (EFPT) system as a strategic initiative to improve local ambient air quality, reduce road congestion, and contribute to the reduction of greenhouse gas (GHG) emissions. In support of these policy goals, this study assesses and compares public support for EFPT across 31 European nations. We use a Bayesian logit model with identified scale to estimate the willingness to pay (WTP) for local EFPT upgrades, utilizing data from 6,520 contingent valuation survey responses. Our findings indicate that WTP is primarily driven by expected improvements in public goods, such as air quality and GHG abatement, rather than private ridership benefits. On average, individuals across all nations demonstrate a WTP of € 7.48 per month. The consistently positive WTP distributions across all nations suggest implicit public support for EFPT at the EU-level.
Number 1
ISSN 2160-5890 (Online)
Climate Change-Induced Inflation Uncertainty in Temperate and Tropical Regions: Does Renewable Energy Offer a Solution?
This study examines the impact of key climate change indicators, including maximum temperature, minimum temperature, and precipitation, on inflation uncertainty across tropical and temperate regions. Using data from 53 countries between 1990 and 2020, the analysis applies Panel Structural Vector Autoregression to uncover regional differences. The findings reveal that maximum temperature significantly contributes to inflation uncertainty in tropical regions, while precipitation plays a major role in temperate regions. The study highlights the critical role of renewable energy in reducing climate-induced inflation volatility, particularly
in tropical areas. The results emphasize the need for region-specific monetary policies that focus on stabilizing food prices, promoting renewable energy in tropical regions, and strengthening infrastructure resilience and water management in temperate regions. Integrating renewable energy into economic strategies is essential for lowering inflation uncertainty and fostering sustainable growth in the face of climate challenges.
Low-Carbon Governmental Policies and Cost of Debt: Evidence from China
This paper uses the staggered difference-in-differences design to investigate the effects of the low-carbon city pilot (LCCP) policy on the cost and underlying mechanisms of debt financing for enterprises. Our findings show that the LCCP significantly decreases the debt cost of enterprises through enhancements in Environmental, Social, and Governance (ESG) performance and the reduction of information asymmetry. Additional analysis indicates that the LCCP’s ability to reduce the cost of debt is particularly pronounced for firms with higher agency costs and those located in China’s eastern regions. This study offers evidence for assessing the effectiveness of low-carbon policies and suggests recommendations to policymakers seeking to enhance the design and implementation of LCCP, thereby contributing to the green development of enterprises and regions.
Abate or Exit? The Impact of Mercury Regulation on Coal Generator Retirements
Between 2001 and 2019, coal-fired electricity generation fell by more than half due to generator retirements and reduced usage of remaining generators. Concurrently, technological advancements made previously unrecoverable shale gas reserves economically viable, thus causing downward pressure on natural gas prices. This made them competitive to coal-fired generators that were aging and becoming less efficient. Moreover, states and the federal government began regulating mercury emissions from the electric power sector, since such pollution harms human health. Little is known about how environmental regulation affects firm exit decisions, or in this case, coal generator retirements. Employing a staggered adoption difference-in- differences identification strategy in a two-way fixed effects model as well as a stacked model, I find that state-level mercury regulation that occurred before compliance of the federal-level Mercury and Air Toxics Standards had an insignificant impact on coal-fired generator retirement. Instead, generator-level abatement
investments, power plant efficiency, and state-level natural gas capacity growth help to account for the impressive departure of coal-fired generators from the grid.
Parental education and household cooking energy choice behaviour in Ghana
Despite efforts and advocacy in favour of transitioning to cleaner cooking fuels, traditional, highly polluting fuels remain dominant in many developing countries. This has prompted the need for further research and evidence to support policies to increase clean energy adoption and accelerate the energy transition agenda in these countries. This study investigates the role of social origin, proxied by parental education, in the choice of cooking fuel in Ghana. Parental education is treated exogenously; hence, linear probability estimation is employed to examine the relationship between parental education and energy choice. The study finds that parental education significantly positively affects clean cooking fuel adoption, with more potent effects found in fathers’ education than in mothers’ education. Heterogeneity analyses show the impact of dampening among lower-income groups and rural residents. With a noticeable shift in educational attainment trends in recent times, as more persons attain higher education, the findings suggest that policies that infuse the socialisation of children with clean energy and sustainability issues will accelerate the clean energy transition.
Still a Petroleum Tanker of a Different Color: Enduring Obstacles to an LNG-based Global Natural Gas Spot Market
Unconventional natural gas production has driven North American prices down
to a fraction of those in Europe for many years, separating the two largest natural
gas markets. The entry of the United States as a major LNG exporter and the energy
crisis in Europe invites the question of whether LNG can eliminate those price
differences in a global natural gas market, as oceangoing trade does for oil markets.
The relative degree of asset specificity in the infrastructure to trade natural
gas or oil between regions separated by oceans provides insight into why, despite
increased liquefaction capacity in the United States and soaring exports to Europe
in 2022, regional price differences remain likely to persist. The fixed capital cost of
LNG infrastructure is an order of magnitude greater than for crude oil. Additionally,
the regulation of the natural gas industry in major markets outside of North
America effectively precludes competitive entry of LNG, driving a wedge between
regional gas prices. Given these constraints, LNG trade will likely remain dominated
by long-term
contracts instead of the spot markets that typify world oil markets.
Navigating Industrial Energy Vulnerability Effects on Export Competitiveness –Evidence of Small Open Economies
The low-carbon transition and the energy crisis pose new challenges for sustainableeconomic growth in the European Union. The high import dependency and the still insufficient share of renewable energy sources threaten the competitiveness of the European economy, especially in small open economies. The article aims to introduce the term “industrial energy vulnerability” to investigate impact…