Template-Type: ReDIF-Paper 1.0 Number: 2019.01 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-001.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.01 Title: Effects of the Digital Transition in Passenger Transport - an Analysis of Energy Consumption Scenarios in Europe Author-Name: Michel Noussan Author-X-Name-First: Michel Author-X-Name-Last: Noussan Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: The transport sector has rarely seen disruptive evolutions after the diffusion of the internal combustion engine, and today the European mobility is still heavily relying on oil derivates and on private cars. However, there is a significant push in cities towards more sustainable mobility paradigms, and digital technologies are playing a major role in unleashing possible alternatives to a car- and fossil-based mobility. Three major digital trends can be highlighted, with different levels of maturity and some potential synergies among them: Mobility as a Service, Shared Mobility and Autonomous Vehicles. The effects of these trends are also related to the strong push towards electric mobility, which currently appears as the most supported solution by companies and regulators to decarbonize the transport sector. This working paper discusses an investigation of the potential effects of digital transition, by means of a data-driven model for the calculation of the impacts of mobility demand in Europe in terms of primary energy consumption and CO2 emissions. The results show that digitalization may have a positive effect on energy consumption and CO2 emissions for passenger transport, given the strong efficiency improvements expected by technological development in the vehicles powertrains. The benefits are maximized if digital technologies are used towards a collective optimization, by increasing the share of available mobility options. Conversely, if digital technologies are limited to increase the quality of private mobility, the environmental benefits will likely remain very limited. Thus, there is a need of tailored policies supporting the right mobility models to fully exploit the potential benefits of digitalization. Keywords: Digitalization, Transport, Energy Consumption, Energy Modelling Classification-JEL: L91, O33, Q4, R41 Creation-Date: 2019-02 Template-Type: ReDIF-Paper 1.0 Number: 2019.02 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-002.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.02 Title: Digitalization for Energy Access in Sub-Saharan Africa : Challenges, Opportunities and Potential Business Models Author-Name: Davide Mazzoni Author-X-Name-First: Davide Author-X-Name-Last: Mazzoni Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Innovative business models supported by digital technologies, together with the widening connectivity and data collection, are already giving a big contribution in fostering the access to electricity and clean cooking in Sub-Saharan Africa. This paper gives an overview on the actual state of energy access in Sub-Saharan Africa and the current technologies used to provide it, followed by a description of the key trends and drivers of the ongoing African digital transformation. A deep analysis of the Pay-as-you-go business model in the off-grid solar sector will shed light on how this transformation started some years ago and the way it is affecting society in many ways. Strengths and opportunities — as well as weaknesses and risks of the model — are provided through a screening of the most representative business experiences in East and West Africa, financial aspects and market analysis. The perspective of both companies and end-users have been considered here. The last section gives recommendations to policy-makers on how to ride the wave of digitalization to foster the access to clean and reliable energy, by acting on the electrification planning, regulations, business environment, distribution channels and mobile money environment. Keywords: Energy Access, Digitalization, PAYGO, Business Models, Africa, Digital Transformation Classification-JEL: O13, O33, O55, M13, Q40, Q48 Creation-Date: 2019-03 Template-Type: ReDIF-Paper 1.0 Number: 2019.03 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-003.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.03 Title: Uncertainty and Risk-aversion in a Dynamic Oligopoly with Sticky Prices Author-Name: Edilio Valentini Author-X-Name-First: Edilio Author-X-Name-Last: Valentini Author-WorkPlace-Name: Department of Economics, University of Chieti-Pescara Author-Name: Paolo Vitale Author-X-Name-First: Paolo Author-X-Name-Last: Vitale Author-WorkPlace-Name: Department of Economics, University of Chieti-Pescara Abstract: In this paper we present a dynamic discrete-time model that allows to investigate the impact of risk-aversion in an oligopoly characterized by a homogeneous non-storable good, sticky prices and uncertainty. Our model nests the classical dynamic oligopoly model with sticky prices by Fershtman and Kamien (Fershtman and Kamien, 1987), which can be viewed as the continuous-time limit of our model with no uncertainty and no risk-aversion. Focusing on the continuous-time limit of the infinite horizon formulation we show that the optimal production strategy and the consequent equilibrium price are, respectively, directly and inversely related to the degrees of uncertainty and risk-aversion. However, the effect of uncertainty and risk-aversion crucially depends on price stickiness since, when prices can adjust instantaneously, the steady state equilibrium in our model with uncertainty and risk aversion collapses to Fershtman and Kamien’s analogue. Keywords: Uncertainty, Risk-aversion, Dynamic Oligopoly Classification-JEL: D8, D81, L13 Creation-Date: 2019-03 Template-Type: ReDIF-Paper 1.0 Number: 2019.04 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-004.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.04 Title: Determinants of the Public Debt and the Role of the Natural Resources: A Cross-Country Analysis Author-Name: Elkhan Sadik-Zada, Andrea Gatto Author-X-Name-First: Elkhan Author-X-Name-Last: Sadik-Zada Author-WorkPlace-Name: Ruhr-Universität Bochum and Cambridge University Author-Name: Andrea Gatto Author-X-Name-First: Andrea Author-X-Name-Last: Gatto Author-WorkPlace-Name: Department of Economic & Legal Studies (DISEG) Abstract: This paper investigates the major drivers of the public debt growth in 184 countries. The underlying cross-country survey is conducted on the basis of the improved compilation of datasets on the central government debt for 2013. The study finds that oil abundance, economic growth rate, the share of mineral rent in the total revenue, interest rate payments for foreign borrowings, and being a developing country have statistically significant impact on the growth of the public debt. In contrast, defense spending, unemployment rate, and inflation rate do not have a statistically significant positive impact on the public debt rate. Keywords: Public debt, Oil rent, Mineral rent, Defence spending, Developing countries Classification-JEL: F21, F34, F36, G15, H6, N1, F3 Creation-Date: 2019-03 Template-Type: ReDIF-Paper 1.0 Number: 2019.05 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-005.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.05 Title: Does China Fall into Poverty-Environment Traps? Evidence from Long-term Income Dynamics and Urban Air Pollution Author-Name: Jian-Xin Wu Author-X-Name-First: Jian-Xin Author-X-Name-Last: Wu Author-WorkPlace-Name: College of Economics, Jinan University Author-Name: Ling-Yun He Author-X-Name-First: Ling-Yun Author-X-Name-Last: He Author-WorkPlace-Name: College of Economics, Jinan University and Nanjing University of Information Science and Technology Author-Name: ZhongXiang Zhang Author-X-Name-First: ZhongXiang Author-X-Name-Last: Zhang Author-WorkPlace-Name: Tianjin University and China Academy of Energy, Environmental and Industrial Economics Abstract: This paper examines the long-run relationship between income and urban air pollution using a joint distribution dynamics approach. This approach enables to estimate the transition process and long-run distribution and to examine the mechanisms behind the evolution process. The approach is applied to a unique panel data of CO2, SO2 and PM2.5 (particulate matter smaller than 2.5µm) for 286 Chinese cities over the period 2002-2014. Strong persistence in the transition dynamics suggests that this convergence process may require a long time. The distribution dynamics analyses indicate that multiple equilibria are the major characteristics in the long-run relationship between income and urban air pollution in China, which implies that inter-regional technology spillover may be an important way to accelerate convergence. Our results further support the existence of poverty-environmental trap in PM2.5 concentrations. Thus, new environmental models are expected to be developed to explain this new stylized fact. The findings provide strong support for taking more aggressive measures that consider income and urban environment simultaneously to reduce poverty and air pollutions together in the Chinese cities. Keywords: Income, Urban Air Pollution, Poverty-environment Trap, Distribution Dynamics Approach, China Classification-JEL: O13, O44, Q43, Q53, Q56, Q58 Creation-Date: 2019-03 Template-Type: ReDIF-Paper 1.0 Number: 2019.06 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-006.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.06 Title: Central Asia Oil and Gas Industry - The External Powers’ Energy Interests in Kazakhstan, Turkmenistan and Uzbekistan Author-Name: Pier Paolo Raimondi Author-X-Name-First: Pier Paolo Author-X-Name-Last: Raimondi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: After the Soviet breakup, Central Asia has gained importance for several States because of its geographical location and abundance of hydrocarbon reserves. These hydrocarbon reserves are located mainly in three countries: Kazakhstan, Turkmenistan and Uzbekistan. Each of them has taken different path regarding its foreign policy and the regulation of investments and participation of external companies and States in its energy sector. Through the development, production and export of their oil and gas reserves, they have pursued a ‘multi-vector’ policy, consolidating differently their relations with other countries. The main States involved – at different levels and for different reasons – in the oil and gas sector of the Central Asian countries are: Russia, China, United States, European countries, Iran, India and Turkey. Among these players, Russia considers Central Asia still part of its sphere of influence for historical reasons, while it has to deal an increasing presence of Beijing. The Western countries has gained influence particularly in Kazakhstan, but they have no political leverage in Turkmenistan. This working paper provides an overview of the current situation of external players’ interests in the oil and gas industry of Kazakhstan, Turkmenistan and Uzbekistan. The working paper is structured into four different sections. In the first section, the paper gives an overview of the main interests and pillars of external involvement in Central Asia as a region. The other three sections are devoted to provide separately the current status of energy relations between each Central Asian country and external players, starting from the closest countries (Russia and China) to the regional ones (Iran, Turkey and India) until non-regional countries (United States and European countries). During these analysis, investments in the oil and gas sector as well as energy export routes and volumes are highlighted in order to understand the current situation of the energy relations. At the end of each country section, the main trends and interests of the countries in the regional oil and gas sector are outlined. Keywords: Energy Geopolitics, Oil&Gas, Central Asia, Russia, China, USA, European Union Classification-JEL: F50, N45, N75, Q40 Creation-Date: 2019-05 Template-Type: ReDIF-Paper 1.0 Number: 2019.07 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-007.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.07 Title: Present Bias and Underinvestment in Education? Long-run Effects of Childhood Exposure to Booms in Colombia Author-Name: Bladimir Carrillo Author-X-Name-First: Bladimir Author-X-Name-Last: Carrillo Author-WorkPlace-Name: Universidade Federal de Viçosa Abstract: This paper examines the long-run impacts of income shocks by exploiting variation in coffee cultivation patterns within Colombia and world coffee prices during cohorts' school-going years in a differences-in-differences framework. The results indicate that cohorts who faced higher returns to coffee-related work during school-going years completed fewer years of schooling and have lower income in adulthood. These findings suggest that leaving school during temporary booms results in a significant loss of long-term income. This is consistent with the possibility that students may ignore or heavily discount the future consequences of dropout decisions when faced with immediate income gains. Keywords: Information Avoidance, Energy Efficiency, Moral Wiggle Roo Classification-JEL: J24, O12, O13 Creation-Date: 2019-05 Template-Type: ReDIF-Paper 1.0 Number: 2019.08 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-008.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.08 Title: On the Use of Spectral Value Decomposition for the Construction of Composite Indices Author-Name: Luca Farnia Author-X-Name-First: Luca Author-X-Name-Last: Farnia Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: High dimensional composite index makes experts’ preferences in set-ting weights a hard task. In the literature, one of the approaches to derive weights from a data set is Principal Component or Factor Analysis that, although conceptually different, they are similar in results when FA is based on Spectral Value Decomposition and rotation is not performed. This works motivates theoretical reasons to derive the weights of the elementary indicators in a composite index when multiple components are retained in the analysis. By Monte Carlo simulation it offers, moreover, the best strategy to identify the number of components to retain. Keywords: Composite Index, Weighting, Correlation Matrix, Principal Com-ponent, Factor Analysis Classification-JEL: C38, C43, C15 Creation-Date: 2019-05 Template-Type: ReDIF-Paper 1.0 Number: 2019.09 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-009.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.09 Title: Optimal Stopping Time, Consumption, Labour, and Portfolio Decision for a Pension Scheme Author-Name: Francesco Menoncin Author-X-Name-First: Francesco Author-X-Name-Last: Menoncin Author-WorkPlace-Name: Università degli Studi di Brescia Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: Università degli Studi di Brescia Abstract: In this work we solve in a closed form the problem of an agent who wants to optimise the inter-temporal utility of both his consumption and leisure by choosing: (i) the optimal inter-temporal consumption, (ii) the optimal inter-temporal labour supply, (iii) the optimal share of wealth to invest in a risky asset, and (iv) the optimal retirement age. The wage of the agent is assumed to be stochastic and correlated with the risky asset on the financial market. The problem is split into two sub-problems: the optimal consumption, labour, and portfolio problem is solved first, and then the optimal stopping time is approached. The martingale method is used for the first problem, and it allows to solve it for any value of the stopping time which is just considered as a stochastic variable. The problem of the agent is solved by assuming that after retirement he received a utility that is proportional to the remaining human capital. Finally, a numerical simulation is presented for showing the behaviour over time of the optimal solution. Keywords: ptimal Stopping Time, Retirement Choice, Labour Supply, Asset Allocation, Mortality Risk Classification-JEL: C61, D15, G11, J22 Creation-Date: 2019-05 Template-Type: ReDIF-Paper 1.0 Number: 2019.10 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-010.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.10 Title: Assessing the Techno-economic Effects of the Delayed Deployment of CCS Power Plants Author-Name: Samuel Carrara Author-X-Name-First: Samuel Author-X-Name-Last: Carrara Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Renewable and Appropriate Energy Laboratory (RAEL), University of California Abstract: Meeting the targets of climate change mitigation set by the Paris Agreement entails a huge transformation of the energy sector, as low- or no-carbon technologies must gradually substitute traditional, fossil-based technologies. In this perspective, the vast majority of energy analyses and scenarios project a fundamental role of Carbon Capture & Storage (CCS). However, uncertainty remains on the actual techno-economic feasibility of this technology: despite the considerable investment over the recent past, commercial maturity is yet to come. The main aim of this work is to evaluate the impacts of a progressively delayed deployment of CCS plants from a climate, energy, and economic perspective, focusing in particular on the power sector. This is carried out with the Integrated Assessment Model WITCH, exploring a wide set of long-term scenarios over mitigation targets ranging from 1.5°C to 4°C in terms of global temperature increase in 2100 with respect to the pre-industrial levels. The analysis shows that CCS will be a key mitigation option at a global level for carbon mitigation, achieving about 30% of the electricity mix in 2100 (with a homogeneous distribution across coal, gas, and biomass) if its deployment is unconstrained. If CCS deployment is delayed or forbidden, penetration cannot reach the optimal unconstrained level, resulting in a mix rearrangement, with a strong increase in renewables and, to a lesser extent, nuclear. The mitigation targets can be met, but policy costs without the implementation of CCS are from 35% to 72% higher than in the corresponding unconstrained scenarios. Keywords: Carbon Capture and Storage, CCS, Power Generation, Climate Change Mitigation, Integrated Assessment Models Classification-JEL: Q42, Q43, Q54 Creation-Date: 2019-05 Template-Type: ReDIF-Paper 1.0 Number: 2019.11 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-011.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.11 Title: Business Tax Policy under Default Risk Author-Name: Nicola Comincioli Author-X-Name-First: Nicola Author-X-Name-Last: Comincioli Author-WorkPlace-Name: University of Brescia and Fondazione Eni Enrico Mattei Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: University of Brescia and Fondazione Eni Enrico Mattei Author-Name: Paolo M. Panteghini Author-X-Name-First: Paolo M. Author-X-Name-Last: Panteghini Author-WorkPlace-Name: University of Brescia and CESifo Abstract: In this article we use a stochastic model with one representative firm to study business tax policy under default risk. We will show that, for a given tax rate, the government has an incentive to reduce (increase) financial instability and default costs if its objective function is welfare (tax revenue). Keywords: Capital Structure, Default Risk, Business Taxation and Welfare Classification-JEL: H25, G33, G38 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.12 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-012.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.12 Title: Matching in the Kolm Triangle: Interiority and Participation Constraints of Matching Equilibria Author-Name: Wolfgang Buchholz Author-X-Name-First: Wolfgang Author-X-Name-Last: Buchholz Author-WorkPlace-Name: University of Regensburg and CESifo Munich Author-Name: Richard Cornes Author-X-Name-First: Richard Author-X-Name-Last: Cornes Author-WorkPlace-Name: Australian National University Author-Name: Dirk Rübbelke Author-X-Name-First: Dirk Author-X-Name-Last: Rübbelke Author-WorkPlace-Name: Technische Universität Bergakademie Freiberg Abstract: In this paper we show how the Kolm triangle method, which is a standard tool for visualizing allocations in a public good economy, can also be used to provide a diagrammatical exposition of matching mechanisms and their effects on public good supply and welfare. In particular, we describe, on the one hand, for which income distributions interior matching equilibria result and, on the other hand, for which income distributions the agents voluntarily participate in a matching mechanism. As a novel result, we especially show that the “participation zone” is larger than the “interiority zone”. Keywords: Public Goods, Matching, Pareto Optimality, Kolm Triangle, Aggregative Games Classification-JEL: C78, H41 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.13 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-013.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.13 Title: The Adverse Effect of Energy-Efficiency Policy Author-Name: Achim Voss Author-X-Name-First: Achim Author-X-Name-Last: Voss Author-WorkPlace-Name: University of Hamburg, Department of Economics Abstract: I analyze energy-efficiency policy as a prescription of a minimum-efficiency standard for energy-using household goods like cars, building insulation, and home appliances. Such a policy has two effects. At the intensive margin, a household that invests will choose a more efficient device. At the extensive margin, there will be more households that choose not to invest at all. Thus, additional to and different from rebound effects, energy-efficiency policy may have unintended consequences. I analyze the equilibrium effects of a minimum-efficiency standard, taking price adjustments and household heterogeneity into account. A moderate minimum-efficiency standard increases demand for efficiency-enhancing household capital goods, and reduces energy demand. More stringent policy is shown to be less effective or even counterproductive. For the case of a fixed supply of efficiency-enhancing capital, it is shown that minimum-efficiency standards increase equilibrium energy demand. Finally, I analyze which households benefit from minimum-efficiency standards and which ones lose. A standard induces investing households to expend more for household capital and less for energy. The wedge between the induced expenditures and the private optimum is analyzed as a deadweight loss. Keywords: Energy Efficiency, Rebound Effects, Household Heterogeneity, Extensive Margin, Gruenspecht Effect, Investment, Theory of Environmental Policy Classification-JEL: Q41, Q48, D15 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.14 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-014.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.14 Title: Adoption Gaps of Environmental Adaptation Technologies with Public Effects Author-Name: Angelo Antoci Author-X-Name-First: Angelo Author-X-Name-Last: Antoci Author-WorkPlace-Name: University of Sassari Author-Name: Simone Borghesi Author-X-Name-First: Simone Author-X-Name-Last: Borghesi Author-WorkPlace-Name: University of Siena and European University Institute Author-Name: Giulio Galdi Author-X-Name-First: Giulio Author-X-Name-Last: Galdi Author-WorkPlace-Name: University of Siena Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and University of Brescia Abstract: The global nature of the climatic challenge requires a high level of cooperation among agents, especially since most of the related coping strategies produce some kind of externalities toward others. Whether they are positive or negative, the presence of externalities may lead the system towards Pareto-dominated states. In this work, we study under and over-adoption of environmental adaptation technologies which enhance environmental quality for the individual while transferring externalities to other agents. We distinguish adaptation technologies between maladaptation and mitigation ones, depending on the sign of the externalities. In particular, we show that over adoption may occur for maladaptive technologies, whereas under-adoption may occur in case of mitigation. We study a model with two regions at different stages of development, which allows us to draw considerations on well-being consequences of environmental dumping. Keywords: Adaptation, Negative Externalities, Evolutionary Dynamics, Public Good Game, Environmental Dumping Classification-JEL: C70, D62, O13, O40, Q20 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.15 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-015.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.15 Title: Emission Taxes, Feed-in Subsidies and the Investment in a Clean Technology by a Polluting Monopoly Author-Name: Ángela García-Alamino Author-X-Name-First: Ángela Author-X-Name-Last: García-Alamino Author-WorkPlace-Name: University of Castilla-La Mancha Author-Name: Santiago J. Rubio Author-X-Name-First: Santiago J. Author-X-Name-Last: Rubio Author-WorkPlace-Name: University of Valencia Abstract: The paper studies the use of emission taxes and feed-in subsidies for the regulation of a monopoly that can produce the same good with a technology that employs a polluting input and a clean technology. The second-best tax and subsidy are calculated solving a two-stage policy game between the regulator and the monopoly with the regulator acting as the leader of the game. We find that the second-best tax rate is the Pigouvian tax. The tax implements the efficient level of the dirty output but does not affect the total output. On the other hand, the subsidy leads to the monopoly to reduce the dirty output but also to increase the total output. This increase in total output may yield a larger net social welfare when the subsidy is used provided that the marginal cost of clean output is not very high, as a linear-quadratic specification of the model confirms. Finally, it is showed that the combination of an emission tax with a feed-in subsidy induces the firm to choose the efficient outputs, but in this case the first-best tax must be lower than the Pigouvian tax. Thus, the findings of this paper support the idea that feed-in subsidies open the possibility for improving the regulation of a polluting firm with market power. Keywords: Monopoly, Polluting Inputs, Clean Technology, Production-mix, Emission Tax, Feed-in Subsidy Classification-JEL: D42, H23, L12, Q58 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.16 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-016.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.16 Title: Emissions Markets with Price Stabilizing Mechanisms: Possible Unpleasant Outcomes Author-Name: Paolo Casini Author-X-Name-First: Paolo Author-X-Name-Last: Casini Author-WorkPlace-Name: KU Leuven Author-Name: Edilio Valentini Author-X-Name-First: Edilio Author-X-Name-Last: Valentini Author-WorkPlace-Name: University G. d’Annunzio of Chieti-Pescara Abstract: There is a large consensus that low levels of carbon price cannot provide adequate incentives to invest in cleaner technologies and abate emissions. Since carbon demand and price tend to decrease during recessions, economists and policy makers have proposed different types of price stabilizing mechanisms (PSM) for emissions markets to prevent carbon price from falling too low. We investigate the effects of a PSM on investments and emissions and show that when unfavorable macroeconomic conditions reduce emissions, adjusting the supply of allowances to sustain their price may inhibit investments. Moreover, when firms invest in an integrated abatement technology, not only can emissions increase - an effect previously examined in the literature - but a PSM can exacerbate this effect when an exogenous negative shock curbs the demand of carbon. Keywords: Carbon Markets, Price Stabilizing Mechanisms, Macroeconomic Recession Classification-JEL: Q5, Q55 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.17 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-017.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.17 Title: Economic Disruptions in Long-Term Energy Scenarios – Implications for Designing Energy Policy Author-Name: Kristina Govorukha Author-X-Name-First: Kristina Author-X-Name-Last: Govorukha Author-WorkPlace-Name: TU Bergakademie Freiberg Author-Name: Philip Mayer Author-X-Name-First: Philip Author-X-Name-Last: Mayer Author-WorkPlace-Name: TU Bergakademie Freiberg Author-Name: Dirk Rübbelke Author-X-Name-First: Dirk Author-X-Name-Last: Rübbelke Author-WorkPlace-Name: TU Bergakademie Freiberg Author-Name: Stefan Vögele Author-X-Name-First: Stefan Author-X-Name-Last: Vögele Author-WorkPlace-Name: Forschungszentrum Jülich GmbH, Institute of Energy and Climate Research – Systems Analysis andTechnology Evaluation Abstract: The main drivers of transformation processes of electricity markets stem from climate policies and changing economic environments. In order to analyse the respective developments, modelling approaches regularly rely on multiple structural and parametric simplifications. For example, discontinuities in economic development (recessions and booms) are frequently disregarded. Distorting effects that are caused by such simplifications tend to scale up with an extension of the time horizon of the analysis and can significantly affect the accuracy of long-term projections. In this study, we include information on economic discontinuities and elaborate on their influences on short-and long-term modelling outcomes. Based on historical data, we identify the impact of a high-amplitude change in economic parameters and examine its cumulative effect on the German electricity market by applying a techno-economic electricity market model for the period from 2005 to 2014. Similar changes may consistently occur in the future and we expect that a more comprehensive understanding of their effects on long-term scenarios will increase the validity of long-term models. Results indicate that policy decision making based on modelling frameworks can benefit from a comprehensive understanding of the underlying simplifications of most scenario studies. Keywords: Scenario Analysis, Electricity Markets, Economic Development, Energy Market Modelling, Uncertainty, Macroeconomic Cycles, Electricity Production Classification-JEL: Q4, Q43 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.18 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-018.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.18 Title: Italian Cities SDGs Composite Index: A Methodological Approach to Measure the Agenda 2030 at Urban Level Author-Name: Luca Farnia Author-X-Name-First: Luca Author-X-Name-Last: Farnia Author-WorkPlace-Name: FEEM Author-Name: Laura Cavalli Author-X-Name-First: Laura Author-X-Name-Last: Cavalli Author-WorkPlace-Name: FEEM Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: University of Brescia and FEEM Abstract: In this paper we calculate the Italian Cities Sustainable Development Goals (SDGs) Composite Index potentially useful for policy analysis and dissemination of sustainable development at local level in Italy. Structured into several dimensions representing 16 out of 17 SDGs adopted by the United Nations at the end of September 2015, the index merges 53 available economic, social and environmental elementary indicators into a single composite dimension, highlighting a geographical and demographic heterogeneity within the country. By using the Spectral Value Decomposition technique, the index offers an urban focus of sustainability, showing some differences among the goals and the cities of Italy. Finally, it identifies the Goal concerning quality education and decent work and economic growth as the main key Goals for sustainability. Keywords: SDGs, Composite Index, Weighting, Correlation, Spectral Value Decomposition, Principal Component Classification-JEL: C4, O18, Q56 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.19 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-019.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.19 Title: Reactor Ageing and Phase-out Policies: Global and European Prospects for Nuclear Power Generation Author-Name: Samuel Carrara Author-X-Name-First: Samuel Author-X-Name-Last: Carrara Author-WorkPlace-Name: Fondazione Eni Enrico Mattei (FEEM) and Renewable and Appropriate Energy Laboratory (RAEL), University of California Abstract: Nuclear is considered as a valuable option for the decarbonization of the power generation, as it is a no-carbon, yet commercially consolidated technology. However, its real prospects are uncertain: if some countries, especially in the non-OECD area, have been extensively investing in nuclear, many OECD countries, which host the vast majority of operational reactors worldwide, feature old fleets which will not be replaced, as phase-out policies are being implemented. Research scenarios often consider polarized conditions based on either a global unconstrained nuclear development or a generalized phase-out. The main aim of this work is instead to explore the techno-economic implications of policy-relevant scenarios, designed on the actual nuclear prospects in the world regions, i.e. mainly differentiating policy constraints between the OECD and the non-OECD regions. The analysis, conducted via the Integrated Assessment Model WITCH, shows that nuclear generation constantly grows over the century, even if in general the nuclear share in the electricity mix does not significantly change over time, both at a global and at a European level. Over time, and especially if constraints are applied to nuclear deployment, the nuclear contribution is compensated by renewables (mainly wind and solar PV) and, to a lower extent, by CCS (only marginally in the EU). The policy costs related to the nuclear phase-out are not particularly high (0.4% additional global GDP loss with respect to the unconstrained policy scenario), as they are almost completely compensated by innovation and technology benefits in renewables and energy efficiency. Phase-out policies applied only to the OECD regions do not entail any additional policy costs, while non-OECD regions marginally benefit from lower uranium prices. A sudden shutdown of nuclear reactors in the OECD regions results in a doubling of these losses and gains. Keywords: Nuclear, Power Generation, Climate Change Mitigation, Integrated Assessment Models Classification-JEL: C69, Q43, Q54 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.20 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-020.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.20 Title: On the Interaction between Small Decay, Agent Heterogeneity and Diameter of Minimal Strict Nash Networks in Two-way Flow Model: A Note Author-Name: Banchongsan Charoensook Author-X-Name-First: Banchongsan Author-X-Name-Last: Charoensook Author-WorkPlace-Name: Keimyung University, Keimyung Adams College, Department of International Business Abstract: In this note, I study the roles of value heterogeneity - i.e., agents are heterogeneous in terms of values of nonrival information thay they possessed - in determining the shapes of two-way flow Strict Nash networks when small amount of decay is present. I do so by extending the two-way flow network with small decay of De Jaegher and Kamphorst (J ECON BEHAV ORGAN, 2015). Results of this extension shows that the effects of value heterogeneity on Strict Nash networks, when small decay is present, largely resemble the effects of heterogeneity in link formation cost - without decay - found in the literature. Another surprising finding is that value heterogeneity can extend the diameters of Strict Nash networks without changing any other properties. In the discussion section of this note, I relate this finding to two well-known concepts in the studies of social networks - small world and preferential attachment. Keywords: Network Formation, Strict Nash Network, Two-way Flow Network, Branching Network Classification-JEL: C72, D85 Creation-Date: 2019-07 Template-Type: ReDIF-Paper 1.0 Number: 2019.21 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-021.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.21 Title: Mafia Firms and Aftermaths Author-Name: Maria Rosaria Alfano Author-X-Name-First: Maria Rosaria Author-X-Name-Last: Alfano Author-WorkPlace-Name: Università degli Studi della Campania Author-Name: Claudia Cantabene Author-X-Name-First: Claudia Author-X-Name-Last: Cantabene Author-WorkPlace-Name: Università degli Studi della Campania Author-Name: Damiano Bruno Silipo Author-X-Name-First: Damiano Bruno Author-X-Name-Last: Silipo Author-WorkPlace-Name: Università della Calabria Abstract: We use a unique and unexplored dataset to investigate the determinants and effects of mafia firms in Italy. Mafia may use several tools to expand its firms. However, in this paper, we show that they prefer political corruption to violence to expand mafia firms. In particular, they use the latter more to build up their reputation in new established regions. Mafia firms hamper entrepreneurial activity but they can have beneficial effects on unemployment if mafia firms add to not substitute current economic activities. Policy makers should take account of this twofold effects of mafia firms. Keywords: Organized Crime, Mafia Firm, Mafia and Development Classification-JEL: D02, K14, L11 Creation-Date: 2019-10 Template-Type: ReDIF-Paper 1.0 Number: 2019.22 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-022.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.22 Title: Vertical Integration under an Optimal Tax Policy: a Consumer Surplus Detrimental Result Author-Name: Michele G. Giuranno Author-X-Name-First: Michele G. Author-X-Name-Last: Giuranno Author-X-Name-First: Michele G. Author-WorkPlace-Name: University of Salento, Dipartimento di Scienze dell’Economia Author-Name: Marcella Scrimitore Author-X-Name-First: Marcella Author-X-Name-Last: Scrimitore Author-WorkPlace-Name: University of Salento, Dipartimento di Scienze dell’Economia Author-Name: Giorgos Stamatopoulos Author-X-Name-First: Giorgos Author-X-Name-Last: Stamatopoulos Author-WorkPlace-Name: University of Crete, Department of Economics Abstract: It is widely believed that vertical integration in an environment without foreclosure, or more generally without any mechanism that restricts competition among firms, raises the welfare of consumers. In this paper we show that this can be overturned in a standard setting. We consider a vertical structure where each downstream firm purchases an input from its exclusive upstream supplier in the presence of a welfare maximizing government which taxes/subsidizes the product of the downstream market. We show that a single or multiple vertical integrations alter the optimal governmental policy in a way that hurts consumers: integration induces the government to reduce the optimal subsidy and, as a result, industry output and consumer welfare decline. Keywords: Vertical Market, Integration, Tax Policy, Consumer Surplus Classification-JEL: L13, L42 Creation-Date: 2019-10 Template-Type: ReDIF-Paper 1.0 Number: 2019.23 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-023.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.23 Title: Coaches on Fire or Firing the Coach? Evidence of the Impact of Coach Changes on Team Performance from Italian Serie A Author-Name: Alessandro Argentieri Author-X-Name-First: Alessandro Author-X-Name-Last: Argentieri Author-WorkPlace-Name: Agricultural University of Ecuador Author-Name: Luciano Canova Author-X-Name-First: Luciano Author-X-Name-Last: Canova Author-WorkPlace-Name: Eni Corporate University, Scuola Eni Enrico Mattei Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: University of Milano-Bicocca, Center for European Studies (CefES) and Fondazione Eni Enrico Mattei (FEEM) Abstract: In this paper, football data from the 2007/2008 to 2016/2017 seasons of the Italian Serie A were used to identify the effects of replacing a coach mid-season due to poor team performance. We used an instrumental variable approach to correlate coach turnover within a season with player productivity and found a very low positive impact of the coach change in the short term but a significant negative impact in the long term. Our findings are also relevant to the literature on management replacement in small-size firms. Keywords: Italian Football Data, Coach Changes, Team Performance, Models for Panel Data, Instrumental Variables Classification-JEL: C23, C36, M51, Z22 Creation-Date: 2019-10 Template-Type: ReDIF-Paper 1.0 Number: 2019.24 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-024.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.24 Title: Human Behavior and New Mobility Trends in the United States, Europe, and China Author-Name: Kathleen Cohen Author-X-Name-First: Kathleen Author-X-Name-Last: Cohen Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Student at John Hopkins University Abstract: New mobility trends such as shared mobility, autonomous vehicles, and mobility as a service are poised to disrupt the way the world moves. Since transport behavior is rooted in human behavior, how these trends are adopted will be influenced by behavioral preferences as well as cultural trends. This literature review looks at the behavioral preferences that will influence the uptake and impact of new mobility in the three largest markets: the United States, Europe, and China. The author finds that factors such as cost, time, comfort, convenience, safety, identity creation, and environmental concern are all important in transport modal choice. Larger societal trends such as changing preferences amongst younger generations as well as differences between urban and rural riders will also influence uptake of new mobility. Ultimately, the sustainability of new mobility in terms of reduced emissions and congestion will depend upon the adoption of shared models over private car ownership, which will require behavioral changes that could be incentivized with smart public policy. Keywords: Mobility, Human Behavior, Transport, Sharing Mobility Classification-JEL: O, O18 Creation-Date: 2019-10 Template-Type: ReDIF-Paper 1.0 Number: 2019.25 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-025.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.25 Title: The Energy Transition in China: Mid-to Long-Term National Strategies and Prospects Author-Name: Canran Zheng Author-X-Name-First: Canran Author-X-Name-Last: Zheng Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Student at John Hopkins University Abstract: This report presents an analysis of China’s transition to a low-carbon energy system, which requires multi-disciplinary approaches. As a world’s energy consumption driver, China will continue to play a significant role in the global energy transition in next few decades and its future choices in the energy sector will have a great impact on global energy demand and supply pattern. On the other hand, China’s unique political environment, complex geographic diversity, and ongoing US-China trade conflict have compounded the uncertainties associated with energy transition. To look into the future roles of different energy technologies, the report mainly covers the spectrum of coal, hydro, nuclear, solar and wind, unconventional oil and gas, as well as electric vehicles. With a specific focus on the power sector, the report aims to help understand the prospects for China’s energy sector based on current contexts, existing policies, announced national and regional plans, and ongoing debates. Keywords: O, O18 Classification-JEL: O, O18 Creation-Date: 2019-10 Template-Type: ReDIF-Paper 1.0 Number: 2019.26 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-026.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.26 Title: Governance Fragmentation and Urban Spatial Expansion: Evidence from Europe and the United States Author-Name: Silvia Beghelli Author-X-Name-First: Silvia Author-X-Name-Last: Beghelli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Gianni Guastella Author-X-Name-First: Gianni Author-X-Name-Last: Guastella Author-WorkPlace-Name: Università Cattolica del Sacro Cuore and Fondazione Eni Enrico Mattei Author-Name: Stefano Pareglio Author-X-Name-First: Stefano Author-X-Name-Last: Pareglio Author-WorkPlace-Name: Università Cattolica del Sacro Cuore and Fondazione Eni Enrico Mattei Abstract: This study assesses the effects of urban governance structure on the spatial expansion of metropolitan areas. A more fragmented governance structure, represented by a high number of administrative units with decision power on land use per inhabitant, is expected to increase the competition between small towns in the suburbs of metropolitan areas to attract households and workers, which, in turn, induces more land uptake. We study empirically the relationship between administrative fragmentation and the spatial size of cities in a sample of 180 metropolitan areas in the contexts of the US and Europe in the period 2000-2012. Results shed light on the structural differences between the two broad regions and suggest that administrative fragmentation impacts positively on land uptake in both the United States and Europe, although to different extents. Keywords: Land take, Governance fragmentation, City size, United States and Europe Classification-JEL: R12, R28, R52 Creation-Date: 2019-12 Template-Type: ReDIF-Paper 1.0 Number: 2019.27 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-027.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.27 Title: “Neighbors as competitors” or “neighbors as partners”: How does market segmentation affect regional energy efficiency in China? Author-Name: Liang Nie Author-X-Name-First: Liang Author-X-Name-Last: Nie Author-WorkPlace-Name: Tianjin University and China Academy of Energy, Environmental and Industrial Economics Author-Name: ZhongXiang Zhang Author-X-Name-First: ZhongXiang Author-X-Name-Last: Zhang Author-WorkPlace-Name: Tianjin University and China Academy of Energy, Environmental and Industrial Economics Abstract: Existing studies have focused on the negative impact of inefficient resource allocation on energy performance in China’s factor market, but neglected to further explore the underlying reason for this phenomenon from the perspective of market segmentation. In this paper, the epsilon-based measure model, which combines the merits of radial and non-radial Data Envelopment Analysis, is employed to measure the energy efficiency, and price index method derived from Iceberg Transport Cost model is used to examine the degrees of market segmentation. On the basis, we use the Tobit model to empirically investigate the impact of market segmentation on China’s energy efficiency. The results show that although energy efficiency in the eastern region is higher than that in the central and western regions, the energy efficiency gap is narrowing significantly between the eastern and central, but insignificantly between the western and eastern. Although efforts have been made towards a unified national market, the western provinces still have more segmented markets than the eastern still. Econometric analysis indicates that market segmentation is negative to China’s energy efficiency significantly. This finding remains robust even if the endogeneity is excluded and the dependent variable is re-measured by the slack-based measure model, but is of a regional heterogeneity. We also find that factor market distortion, enterprises’ R&D investment, and industrial agglomeration are three mediation mechanisms through which market segmentation affects energy efficiency. In-depth analysis indicates that there is a Race to the Top competition centering on market segmentation among Chinese local officials in geospatial and economic space, which triggers a long-term inhibition to energy efficiency. Keywords: Energy efficiency, Market segmentation, Factor market, EBM model, Tobit model, SBM model Classification-JEL: Q43, Q48, O13, P23, P28 Creation-Date: 2019-12 Template-Type: ReDIF-Paper 1.0 Number: 2019.28 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-028.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.28 Title: Photovoltaic Smart Grids in the Prosumers Investment Decisions: a Real Option Model Author-Name: Marta Castellini Author-X-Name-First: Marta Author-X-Name-Last: Castellini Author-WorkPlace-Name: Università degli Studi di Brescia and Fondazione Eni Enrico Mattei Author-Name: Francesco Menoncin Author-X-Name-First: Francesco Author-X-Name-Last: Menoncin Author-WorkPlace-Name: Università degli Studi di Brescia Author-Name: Michele Moretto Author-X-Name-First: Michele Author-X-Name-Last: Moretto Author-WorkPlace-Name: Università degli Studi di Padova Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: Università degli Studi di Brescia and Fondazione Eni Enrico Mattei Abstract: The digitization of power system represents one of the main instruments to achieve the target set by the European Union 2030 climate and energy Agenda of affordable energy transition. During the last years, such innovation process has been associated with the Smart Grid (SG) term. In this context, efficiency and flexibility of power systems are expected to increase and energy consumers to be active also on the production side, thus becoming prosumers (agents that both produce and consume energy). This paper provides a theoretical real option framework with the aim to model prosumers’ decision to invest in photovoltaic power plants, assuming that they are integrated in a Smart Grid. Our main focus is to study the optimal plant size and the optimal investment threshold, in a context where exchange of energy among prosumers is possible. The model was calibrated and tested with data from the Northern Italy energy market. Our findings show that the possibility of selling energy between prosumers, via the Smart Grid, increases investment values. This opportunity encourages prosumers to invest in a larger plant compared with the case without exchange possibility and that there is a positive relation between optimal size and (optimal) investment timing. The effect of uncertainty is in line with the literature, showing increasing value to defer with volatility. Keywords: Smart Grids, Renewable Energy Sources, Real Options, Prosumer, Peer to Peer Energy Trading Classification-JEL: Q42, C61, D81 Creation-Date: 2019-12 Template-Type: ReDIF-Paper 1.0 Number: 2019.29 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2019-029.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2019.29 Title: Fertility Transitions in Developing Countries: Convergence, Timing, and Causes Author-Name: Erasmo Papagni Author-X-Name-First: Erasmo Author-X-Name-Last: Papagni Author-WorkPlace-Name: University of Campania L. Vanvitelli and Global Labor Organization (GLO) Abstract: This paper studies the dynamics of fertility in 180 countries in theperiod 1950-2015 and investigates the determinants of the onset of fertility transitions. We find evidence of convergence in three groups of countries, and distinguish the transitioning countries from those not transitioning. The estimation of the year of onset of the fertility transitionis followed by an econometric analysis of the causes of this event. Instrumental-variable estimates show that increasing female education and reduced infant mortality are important determinants of fertility decline, while per-capita GDP has probably worked in the opposite direction. These results are confirmed by the application of Lewbel's (2012) methods where identification is based on heteroskedasticity. Keywords: Fertility, Demographic Trends, Female Education Classification-JEL: J11, J13, I15, I25, C26 Creation-Date: 2019-12