1,721,021 research outputs found
The impact of phasing out fossil fuel subsidies on the low-carbon transition
No full textThere 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
Resource scarcity, circular economy and the energy rebound: A macro-evolutionary input-output model
No full textWe propose an Agent-Based Stock-Flow Consistent model combined with a simplified Input-Output (IO) structure of production. In the model, heterogeneous firms interact in the energy, material, capital and consumption markets. Materials for production of consumer goods can be manufactured using non-renewable or recycled material inputs. We examine the conditions under which the circular economy emerges through market mechanisms, as well as it can be a source of the rebound effect. An important novelty of our approach is that recycling and mining sectors employ different types of capital for production. Capital goods (machinery) are produced by capital firms, which constantly engage in innovations to improve their technological features. This way we endogenize changes in technological coefficients of the Input-Output tables. We show that sectoral interdependencies along the value chain can render the energy rebound effect due to the circular economy (CE) even if energy intensity of the recycling process is lower compared to mining. This effect depends on the impact of investment in the recycling sector on the aggregate demand and energy use along the entire value chain. We assess the role of macroeconomic policies, namely mission-oriented innovation policies (MOIPs), active fiscal policies (AFPs), and environmental taxes in fostering the CE transition, while mitigating the rebound effect. We find that the combination of MOIPs and active fiscal policy is the most effective in promoting the circular economy, preserving employment and ensuring a sustainable growth path
Statistical Analysis and Agent-Based Microstructure Modeling of High-Frequency Financial Trading
No full textEvaluating policy mix strategies for the energy transition using an agent-based macroeconomic model
No full textClimate policy analysis has traditionally focused on evaluating individual policy instruments or comparing different instruments, but an increasing number of scholars are emphasizing the advantages of employing a policy mix. In this study, we investigate the combination of a carbon tax and a feed-in tariff policy using the Eurace agent-based model, addressing two primary issues: understanding the interactions between individual instruments within the policy mix and identifying the optimal combination to facilitate the energy transition. To evaluate the effects of each policy, we first examine policies in isolation and then analyse their combined impact. The results indicate that the feed-in tariff policy generally outperforms the carbon tax when considering both climate and economic indicators. Furthermore, when physical climate feedback is not included in the model, the combined policy approach outperforms the individual policies. However, for higher values of the carbon tax and feed-in tariff, the benefits of the policy mix decrease, and this reduction becomes more pronounced when physical climate feedback is considered
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