Template-Type: ReDIF-Paper 1.0 Number: 2022.01 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-001.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.01 Title: Urban cycling tourism. How can bikes and public transport ride together for sustainability? Author-Name: Daniele Crotti Author-X-Name-First: Daniele Author-X-Name-Last: Crotti Author-WorkPlace-Name: University of Insubria Author-Name: Elena Maggi Author-X-Name-First: Elena Author-X-Name-Last: Maggi Author-WorkPlace-Name: University of Insubria Author-Name: Evangelia Pantelaki Author-X-Name-First: Evangelia Author-X-Name-Last: Pantelaki Author-WorkPlace-Name: University of Insubria Abstract: In the last years, sustainable travels have included bike tourists visiting cities to enjoy cultural and urban environments. Yet, when considering cycling tourists’ intra-destination trips by motorized vehicles, the extent of greenhouse gas (GHG) emissions could reduce the sustainability of those tourism experiences. In this paper we study the bike tourists’ choice of visiting urban places and of using greener transport means, such as public transportation. By using 858 observations from an on-line survey on bike tourism in 2020 in Italy, we develop a bivariate probit model, considering socio-demographics, bike-related factors, travel characteristics, and the evaluation of cycling and accommodation features at destination. The odds of visiting cities are positively affected by travel features, e.g., picking foreign countries, travel groups, the length of stays, the availability of commercial and bike recovery services, but also negatively by road traffic. Notably, using public transportation is more likely for longer daily trips by bike, for low-cost tourists lodging in B&Bs, and for those having a higher sensitivity to bike-related services. Since we statistically found a linkage between the two choices, from a destination management perspective, our results support the sustainability claim for policies affecting them simultaneously. Keywords: Sustainable travels, Cycling holidays, Urban tourism, Public transportation, Bivariate probit Classification-JEL: C25, L92, O18, Q56, R41, Z32 Creation-Date: 2022-01 Template-Type: ReDIF-Paper 1.0 Number: 2022.02 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-002-new.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.02 Title: Public subsidies and cooperation in research and development. Evidence from the lab Author-Name: Antonio Acconcia Author-X-Name-First: Antonio Author-X-Name-Last: Acconcia Author-WorkPlace-Name: University of Naples 'Federico II' and CSEF Author-Name: Sergio Beraldo Author-X-Name-First: Sergio Author-X-Name-Last: Beraldo Author-WorkPlace-Name: University of Napoli 'Federico II' & CSEF Author-Name: Carlo Capuano Author-X-Name-First: Carlo Author-X-Name-Last: Capuano Author-WorkPlace-Name: University of Napoli 'Federico II' & CSEF Author-Name: Marco Stimolo Author-X-Name-First: Marco Author-X-Name-Last: Stimolo Author-WorkPlace-Name: University of Campania 'Luigi Vanvitelli' Abstract: We implement an experimental design based on a duopoly game in which subjects choose whether to cooperate in Research and Development (R&D) activities. We first conduct six experimental markets that differ in both the levels of knowledge spillovers and the intensity of competition. Consistently with the theory, we find that the probability of cooperation increases in the level of spillovers and decreases in that of market competition. We then replicate the experimental markets by providing subsidies to subjects who cooperate. Subsidies relevantly increase the probability of cooperation in focus markets, causing, however, a sensible reduction of R&D investments. Overall, our evidence suggests that, depending on the characteristics of the market, the use of public subsidies might be redundant, for firms would anyway joined their R&D efforts; or counterproductive, inducing firms to significantly reduce R&D investments compared to the non-cooperative scenario. Keywords: Cooperation in R&D, Public Subsidies, Knowledge Spillovers, Market Competition Classification-JEL: L24, O3 Creation-Date: 2022-01 Template-Type: ReDIF-Paper 1.0 Number: 2022.03 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-003.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.03 Title: Corporate Environmental Information Disclosure and Investor Response: Empirical Evidence from China's Capital Market Author-Name: Jia Meng Author-X-Name-First: Jia Author-X-Name-Last: Meng Author-WorkPlace-Name: Ma Yinchu School of Economics, Tianjin University, Tianjin, China Author-Name: ZhongXiang Zhang Author-X-Name-First: ZhongXiang Author-X-Name-Last: Zhang Author-WorkPlace-Name: China Academy of Energy, Environmental and Industrial Economics, China Abstract: This paper aims at analyzing the impact of corporate environmenral information disclosure from the perspective of investors. To that end, we have collected environmental information disclosure data of all Chinese listed companies from 2004 to 2020 and controlled the impacts of annual reports on investor response. We apply the Fama-French five-factor model to calculate the accumulative abnormal returns of stocks during the event window period. Our results suggest that environmental information disclosure can have a significant negative response among investors when we take the impacts of annual reports into consideration. Moreover, we find that heavy-polluting companies and companies with high institutional shareholding are more likely to have negative reactions from investors. Notably, the negative response is found significant after the Ambient Air Quality Standard was revised in 2012. Furthermore, high environmental expenditure and strict environmental regulation will result in negative investor responses, while the political connection can alleviate the negative impacts of environmental information disclosure. The results remain robust in different ways. The findings suggest that listed companies may lack the incentive to engage in environmental management and are reluctant to disclose environmental information. Consequently, the government should formulate a mandatory disclosure policy and provide administrative support to environmentalfriendly companies. Besides, companies should improve innovation technology to cut down environmental costs. Meanwhile, investors should be aware of the importance of corporate environmental behaviors and realize the long-term benefits of environmental management of listed companies. Keywords: Environmental information disclosure, Investor response, Corporate annual reports, Fama-french five factor model, China's capital market Classification-JEL: L24, O3 Creation-Date: 2022-01 Template-Type: ReDIF-Paper 1.0 Number: 2022.04 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-004.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.04 Title: Climate Change, Armed Conflicts and Resilience Author-Name: Mariagrazia D'Angeli Author-X-Name-First: Mariagrazia Author-X-Name-Last: D'Angeli Author-WorkPlace-Name: Department of Economics, Society and Politics, University of Urbino Carlo Bo, Italy Author-Name: Giovanni Marin Author-X-Name-First: Giovanni Author-X-Name-Last: Marin Author-WorkPlace-Name: Department of Economics, Society and Politics, University of Urbino Carlo Bo, Italy Author-Name: Elena Paglialunga Author-X-Name-First: Elena Author-X-Name-Last: Paglialunga Author-WorkPlace-Name: Department of Economics, Society and Politics, University of Urbino Carlo Bo, Italy Abstract: In recent years, there has been rapid development of the literature linking climate change and armed conflicts. Although no conclusionary evidence has been found of a direct link between climate change and armed conflicts, still climate change has been addressed as an important trigger, exacerbating underlying social, economic and institutional conditions and thus resulting in higher risk and magnitude of violent activities. In this context, while more research is needed to further disentangle how climatic changes combine with socio-economic and institutional elements to induce conflicts, an important pathway to be explored is the role that building resilience can play in preventing and/or breaking the negative relationship between climate change and violent activity. In this context, resilience refers to the capacity of a system to come back to its original conditions after a shock and relies on the combination of socioeconomic, institutional and technological dimensions. In our paper we provide empirical evidence on the role played by resilience-building investments in attenuating the emergence of armed conflicts as a consequence of climate-related anomalies and natural disasters. Keywords: Resilience, Armed Conflicts, Natural Disasters, Climate Change Classification-JEL: D74, O13, Q54 Creation-Date: 2022-02 Template-Type: ReDIF-Paper 1.0 Number: 2022.05 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-005.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.05 Title: The economic returns of circular economy practices Author-Name: Davide Antonioli Author-X-Name-First: Davide Author-X-Name-Last: Antonioli Author-WorkPlace-Name: Department of Economics and Management, University of Ferrara and SEEDS – Centre for Sustainability, Environmental Economics and Dynamics Studies Author-Name: Claudia Ghisetti Author-X-Name-First: Claudia Author-X-Name-Last: Ghisetti Author-WorkPlace-Name: Università degli studi di Milano Bicocca Author-Name: Massimiliano Mazzanti Author-X-Name-First: Massimiliano Author-X-Name-Last: Mazzanti Author-WorkPlace-Name: Department of Economics and Management, University of Ferrara and SEEDS – Centre for Sustainability, Environmental Economics and Dynamics Studies Author-Name: Francesco Nicolli Author-X-Name-First: Francesco Author-X-Name-Last: Nicolli Author-WorkPlace-Name: Department of Economics and Management, University of Ferrara and SEEDS – Centre for Sustainability, Environmental Economics and Dynamics Studies Abstract: Assessing the economic consequences of sustainable production choices aimed at reducing environmental negative externalities is crucial for policy making, in light of the increasing interest and awareness experienced in the recent EU policy packages (Circular Economy package; European Green Deal and Recovery Fund to support sustainable transition). This assessment is one of the goal of the current work, which tries to provide new empirical evidence on the economic returns of such choices, drawing on previous literature on the underlying determinants of greener production choices, which are stated to differ from standard technological innovations as they are subject to a knowledge and an environmental externality. Using an original dataset on about 3000 Italian manufacturing firms we provide evidence on the relations among innovations related to the Circular Economy concept and economic outcome in the short run. The evidence shows that in the short run it is difficult to obtain economic gains, especially for the SMEs. Keywords: Circular Economy, Sustainable Production, Environmental Innovation, Economic Effect Classification-JEL: O30, O44, O55 Creation-Date: 2022-02 Template-Type: ReDIF-Paper 1.0 Number: 2022.06 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-006.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.06 Title: Adoption of Eco and Circular Economy-Innovation in Italy: exploring different firm profiles Author-Name: Massimiliano Mazzanti Author-X-Name-First: Massimiliano Author-X-Name-Last: Mazzanti Author-WorkPlace-Name: University of Ferrara Author-Name: Francesco Nicolli Author-X-Name-First: Francesco Author-X-Name-Last: Nicolli Author-WorkPlace-Name: University of Ferrara Author-Name: Stefano Pareglio Author-X-Name-First: Stefano Author-X-Name-Last: Pareglio Author-WorkPlace-Name: Università Cattolica del Sacro Cuore Author-Name: Marco Quatrosi Author-X-Name-First: Marco Author-X-Name-Last: Quatrosi Author-WorkPlace-Name: University of Ferrara Abstract: Applying clustering techniques, this paper identifies homogeneous groups of enterprises within the heterogeneous landscape of the italian manufacturing tissue. The algorithm will be fed with data from a survey on a cross-section of SMEs in 2019. The set of questions span from economic and financial performances to innovation adoption (product, process, organization), to circular economy implementation and environmental protection. Clustering has been chosen to identify groups of firms with respect to multiple and diverse characteristics without any preexisting hypothesis on a possible relationship among the variables. Results will group profiles of enterprises considering the information on multi-dimensional aspects of a firm. Indeed, the overarching aim of this work is to single out common characteristics among the diverse landscape of enterprises within the manufacturing sector. This will in turn support (local and national) policy makers in better designing and targeting an appropriate set of policy instruments with respect to the relevant areas (i.e., circular economy, environmental protection, eco-innovation) of the ecological/sustainability transition. If the one-size-fits-all has not been proved a viable approach in policy making, a more targeted intervention at policy level tackling the consistent heterogeneity of the manufacturing tissue might improve the effectiveness of (sectorial) policies. Keywords: Circular Economy, Sustainable production, Environmental Innovation, Cluster analysis, Firm profile Classification-JEL: O30, O44, O55 Creation-Date: 2022-02 Template-Type: ReDIF-Paper 1.0 Number: 2022.07 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-007.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.07 Title: Innovation, Circular economy practices and organisational settings: empirical evidence from Italy Author-Name: Davide Antonioli Author-X-Name-First: Davide Author-X-Name-Last: Antonioli Author-WorkPlace-Name: University of Ferrara Author-Name: Claudia Ghisetti Author-X-Name-First: Claudia Author-X-Name-Last: Ghisetti Author-WorkPlace-Name: Università degli Studi di Milano-Bicocca Author-Name: Stefano Pareglio Author-X-Name-First: Stefano Author-X-Name-Last: Pareglio Author-WorkPlace-Name: Università Cattolica del Sacro Cuore Author-Name: Marco Quatrosi Author-X-Name-First: Marco Author-X-Name-Last: Quatrosi Author-WorkPlace-Name: University of Ferrara Abstract: This paper builds on the available knowledge on what drives firms’ production choices towards circular economy practices to shed new light on a so far quite neglected dimension: the role of organizational settings. Being the transition to a more circular economy systemic in nature, itdraws not only on technological but also on organizational changes and new set-ups. Coherently, the paper investigates how certain organizational settings (such as practices of communication to employees on critical aspects of the life of the company, the implementation of new performance evaluation mechanisms and incentive-based payment methods and the implementation of changes in recruitment and training of (new) employees affect the adoption of circular economy innovation. The work is empirical, and it draws on a newly collected dataset representative for Italian manufacturing firms in 2017-2018. Results show new light on the role of such organizational set-ups, which are found to be making the transition towards a circular economy more effective. Keywords: Circular Economy, Sustainable Production, Environmental Innovation, Organisational Change Classification-JEL: O30, O44, O55 Creation-Date: 2022-02 Template-Type: ReDIF-Paper 1.0 Number: 2022.08 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-008.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.08 Title: Besides promising economic growth, will the Italian NRRP also produce fewer emissions? Author-Name: Ilenia Romani Author-X-Name-First: Ilenia Author-X-Name-Last: Romani Author-WorkPlace-Name: Università degli Studi di Brescia and Fondazione Eni Enrico Mattei Author-Name: Marzio Galeotti Author-X-Name-First: Marzio Author-X-Name-Last: Galeotti Author-WorkPlace-Name: Università degli Studi di Milano and Fondazione Eni Enrico Mattei Author-Name: Alessandro Lanza Author-X-Name-First: Alessandro Author-X-Name-Last: Lanza Author-WorkPlace-Name: LUISS and Fondazione Eni Enrico Mattei Abstract: The funds allocated by the National Recovery and Resilience Plan (NRRP) aim to trigger a multiplier effect on GDP as they are designed to help the recovery after the Covid-19 pandemic. The GDP increase is in turn expected to drive energy consumption up which will increase CO2 emissions, given that fossil fuels still account for 79% of the Italian total primary energy consumption. At the same time, as the NRRPs are part of the EU Green Deal, an important share of the Plan’s investments is aimed at facilitating the green transition, with expected favorable effects on emissions. Which one of these two effects will prevail remains to be ascertained. In this study we have used the GEM (Global Economic Model) by Oxford Economics to build a number of scenarios and generate the relevant simulations aimed at assessing the impact of the Italian NRRP’s interventions on energy consumption and CO2 emissions. To validate the use of GEM we extensively considered the macroeconomic impact on GDP and unemployment rate generated by the model and compare the results to those presented by other institutions and obtained using different models. The results show that when the green investments of the NRRP display their effects, there are climatic benefits in terms of reduced emissions. Compared to the implementation of the NRRP in 2021, however, the reduction in emissions by 2030 is modest and equal to 5%. As those investments largely refer to the adoption of clean technologies, the climate benefits are likely to be more substantial only in subsequent years and over longer horizons. Keywords: National Recovery and Resilience Plan, CO2 emissions, Large-scale macroeconomic model, Post-Covid recovery Classification-JEL: E37, E61, E62, Q43, Q54, C30 Creation-Date: 2022-02 Template-Type: ReDIF-Paper 1.0 Number: 2022.09 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-009.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.09 Title: Charging the macroeconomy with an energy sector: an agent-based model Author-Name: Emanuele Ciola Author-X-Name-First: Emanuele Author-X-Name-Last: Ciola Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università degli Studi di Brescia Author-Name: Enrico Turco Author-X-Name-First: Enrico Author-X-Name-Last: Turco Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università Cattolica del Sacro Cuore Author-Name: Andrea Gurgone Author-X-Name-First: Andrea Author-X-Name-Last: Gurgone Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università Cattolica del Sacro Cuore Author-Name: Davide Bazzana Author-X-Name-First: Davide Author-X-Name-Last: Bazzana Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università degli Studi di Brescia Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università degli Studi di Brescia Author-Name: Francesco Menoncin Author-X-Name-First: Francesco Author-X-Name-Last: Menoncin Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Università degli Studi di Brescia Abstract: The global energy crisis that began in fall 2021 and the following spike in energy price constitute a major challenge for the world economy which risks undermining the post-COVID-19 recovery. In this paper, we develop and validate a new macroeconomic agent-based model with an endogenous energy sector to analyse the role of energy in the functioning of a complex adaptive system and assess the effects of energy shocks on the economic dynamics. The economic system is populated by heterogeneous agents, i.e., households, firms and banks, who take optimal decision rules and interact in decentralized markets characterized by limited information. After calibrating the model on US quarterly macroeconomic data, we investigate the economic and distributional effects of different types of energy shocks, that is an exogenous increase in the price of natural resources such as oil or gas and a decrease in the energy firms' productivity. We find that whereas the two energy shocks entail similar effects at the aggreagate level, the distribution of gains and losses across sectors is largely driven by the subsequent impact on the relative energy price, which varies depending on the type of shock. Our results suggest that, in order to design effective measures in response to energy crises, policymakers need to carefully take into account the nature of energy shocks and the resulting distributional effects. Keywords: Energy Sector, Energy Shocks, Agent-Based Models, Macroeconomic Dynamics Classification-JEL: C63, O13, Q41, Q43 Creation-Date: 2022-03 Template-Type: ReDIF-Paper 1.0 Number: 2022.10 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-010.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.10 Title: Nemo Propheta in Patria: Empirical Evidence from Italy Author-Name: Emanuele Millemaci Author-X-Name-First: Emanuele Author-X-Name-Last: Millemaci Author-WorkPlace-Name: University of Messina Author-Name: Alessandra Patti Author-X-Name-First: Alessandra Author-X-Name-Last: Patti Author-WorkPlace-Name: University of Messina Abstract: In recent years, young brain drain within Italian provinces has increased at higher speed than ever. While is premature to assess whether this process is transitory or permanent, it should be analysed and monitored by researchers and policy makers for its many socio-economic consequences. Previous empirical studies have demonstrated that Italian net skilled migration is influenced by economic factors, such as income per capita and employment, and, with a less extent, by the search of places endowed with more amenities. In the crossroad between these factors, this paper investigates corruption as key element of the Italian skilled mobility. To this end, a comprehensive framework with Zero-Inflated Poisson and Pseudo-Poisson Maximum Likelihood with High Dimensional Fixed Effects models for bilateral data on the Italian students’ flows is used. Results suggest the dual role of push and pull mechanisms at play, as high corruption incentivizes Italian skilled mobility to destinations that, instead, exhibit lower corruption. Moreover, sensitivity of the prospective tertiary students to corruption varies according to their field of study of interest. Finally, empirical evidence on skilled flows from the lagging Mezzogiorno to the North of Italy, suggests that the push and pull effects of corruption stir up the endurance of the well-known socio-economic dualism between these two parts of the country. Keywords: Brain drain, Corruption, Panel data, Gravity, Zip, Ppmlhdfe Classification-JEL: D73, F12, R23 Creation-Date: 2022-03 Template-Type: ReDIF-Paper 1.0 Number: 2022.11 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-011.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.11 Title: A weekly structural VAR model of the US crude oil market Author-Name: Daniele Valenti Author-X-Name-First: Daniele Author-X-Name-Last: Valenti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Environmental Science and Policy, University of Milan Author-Name: Andrea Bastianin Author-X-Name-First: Andrea Author-X-Name-Last: Bastianin Author-WorkPlace-Name: Department of Economics, Management and Quantitative Methods, University of Milan and Fondazione Eni Enrico Mattei Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: Departments of Economics, Management and Statistics, University of Milan-Bicocca and Fondazione Eni Enrico Mattei Abstract: We present a weekly structural Vector Autoregressive (VAR) model of the US crude oil market. Exploiting weekly data we can explain short-run crude oil price dynamics, including those related with the COVID-19 pandemic and with the Russia’s invasion of Ukraine. The model is set identified with a Bayesian approach that allows to impose restrictions directly on structural parameters of interest, such as supply and demand elasticises. Our model incorporates both the futures-spot price spread to capture shocks to the real price of crude oil driven by changes in expectations and US inventories to describe price fluctuations due to unexpected of variations of above-ground stocks. Including the futures-spot price spread is key for accounting for feedback effects from the financial to the physical market for crude oil and for identifying a new structural shock that we label expectational shock. This shock plays a crucial role when describing the series of events that have led to the spike in the price of crude oil recorded in the aftermath of Russia’s invasion of Ukraine. Keywords: COVID-19; WTI price; futures-spot price spread; speculation; structural VAR; Bayesian VAR Classification-JEL: C32, Q02, Q41, Q43 Creation-Date: 2022-05 Template-Type: ReDIF-Paper 1.0 Number: 2022.12 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-012.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.12 Title: On Efficiency and Stability in Two-way Flow Network with Small Decay: A Note Author-Name: Banchongsan Charoensook Author-X-Name-First: Banchongsan Author-X-Name-Last: Charoensook Author-WorkPlace-Name: Department of International Business, Keimyung Adams College, Keimyung University Abstract: Most literature in strategic network formation shows that there is a substantial tension between stability and efficiency. In this note, I show that such is not the case in the twoway flow model with small decay studied by Bala and Goyal (2000a) and De Jaegher and Kamphorst (2015). Specifically, I show that every link receiver in a Nash network serves as an efficient trans-mitter of information. I also generalize this result to the case of player hetero-geneity and then provide a fine-detail characterization of effiicient networks. Keywords: Network Formation, Nash Network, Two-way Flow Network, Agent Heterogeneity, Efficient Network Classification-JEL: C72, D85 Creation-Date: 2022-05 Template-Type: ReDIF-Paper 1.0 Number: 2022.13 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-013.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.13 Title: Green credit policy and total factor productivity: Evidence from Chinese listed companies Author-Name: Shu Guo Author-X-Name-First: Shu Author-X-Name-Last: Guo Author-WorkPlace-Name: Ma Yinchu School of Economics, 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: Ma Yinchu School of Economics, Tianjin University and China Academy of Energy, Environmental and Industrial Economics Abstract: The green credit policy plays a vital role in promoting enterprise upgrading. Using a thirteen year panel data of listed companies in China (2007 2019), this study uses the difference in differences (DID) method to examine the effects of the Green Credit Guidelines in 2012 (GCG2012) on the firm level total factor productivity (TFP). Our results show that the GCG2012 significantly increases the TFP of companies in green credit restricted industries. This finding remains robust through employing the PSM-DID model, alternating the treatment group, changing the sample period, and controlling the effects of other environmental policies and financial crises. This effect is more pronounced for private enterprises, companies with worse debt paying ability, companies in highly competitive industries and companies in regions with higher financial liberalization. The impact mechanism test indicates that increasing the green innovation and reducing the agency costs (including green agency costs and traditional agency costs) are two possible channels to boost firm level TFP. Further analysis shows that the GCG2012 is effective not only for heavily polluting industries but also for light polluting industries, and that the GCG2012 can improve the economic performance of firms in green credit restricted industries. Overall, this study reveals the micro mechanisms behind the long term impact of the GCG2012 policy on firm level TFP, providing empirical evidence and policy suggestions for improving green credit policies and promoting green development. Keywords: Green credit policy, green finance, total factor productivity, PSM-DID model, China Classification-JEL: Q48, Q53, Q55, Q58, O13, P28, R11, H23 Creation-Date: 2022-05 Template-Type: ReDIF-Paper 1.0 Number: 2022.14 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-014.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.14 Title: Anatomy of Green Specialisation: Evidence from EU Production Data, 1995-2015 Author-Name: Francesco Vona Author-X-Name-First: Francesco Author-X-Name-Last: Vona Author-WorkPlace-Name: University of Milan, Department of Environmental Science and Policy, Fondazione Eni Enrico Mattei (FEEM) and OFCE Sciences-Po Author-Name: Francesco Bontadini Author-X-Name-First: Francesco Author-X-Name-Last: Bontadini Author-WorkPlace-Name: OFCE Sciences-Po, LUISS Guido Carli University and SPRU – University of Sussex Abstract: We study green specialisation across EU countries and detailed 4-digit industrial sectors over the period of 1995-2015 by harmonizing product-level data (PRODCOM). We propose a new list of green goods that refines lists proposed by international organizations by excluding goods with double usage. Our analysis reveals important structural characteristics of green specialisation in the manufacturing sector. First, green production is highly concentrated, with 13 out of 119 4-digit industries, which are high-tech and account for nearly 95% of the total. Second, green and polluting productions do not occur in the same sectors, and countries specialise in either green or brown sectors. Third, our econometric analysis identifies three key drivers of green specialisation: (i) first-mover advantage and high persistence of green specialisation, (ii) complementarity with non-green capabilities and (iii) the degree of diversification of green capabilities. Importantly, once we control for these drivers, environmental policies are not anymore positively associated with green specialisation. Keywords: Green goods, green specialisation, environmental policies, complementarity, path dependency Classification-JEL: Q55, L60, O44 Creation-Date: 2022-06 Template-Type: ReDIF-Paper 1.0 Number: 2022.15 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-015.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.15 Title: E pluribus, quaedam. Gross domestic product out of a dashboard of indicators Author-Name: Mattia Guerini Author-X-Name-First: Mattia Author-X-Name-Last: Guerini Author-WorkPlace-Name: University of Brescia, Fondazione Eni Enrico Mattei (FEEM), GREDEG, CNRS, Université Côte d'Azur and Institute of Economics, Sant'Anna School of Advanced Studies Author-Name: Fabio Vanni Author-X-Name-First: Fabio Author-X-Name-Last: Vanni Author-WorkPlace-Name: Università degli Studi dell'Insubria, GREDEG, CNRS, Université Côte d'Azur and Institute of Economics, Sant'Anna School of Advanced Studies Author-Name: Mauro Napoletano Author-X-Name-First: Mauro Author-X-Name-Last: Napoletano Author-WorkPlace-Name: GREDEG, CNRS, Université Côte d'Azur, Sciences Po, OFCE, SKEMA Business School and Institute of Economics, Sant'Anna School of Advanced Studies Abstract: Is aggregate income enough to summarize the well-being of a society? We address this longstanding question by exploiting a novel approach to study the relationship between gross domestic product (GDP) and a set of economic, social and environmental indicators for nine developed economies. By employing dimensionality reduction techniques, we quantify the share of variability stemming from a large set of different indicators that can be compressed into a univariate index. We also evaluate how well this variability can be explained if the univariate index is GDP. Our results indicate that univariate measures, and GDP among them, are doomed to fail in accounting for the variability of well-being indicators. Even if GDP would be the best linear univariate index, its quality in synthesizing information from indicators belonging to different domains is poor. Our approach provides additional support for policy makers interested in measuring the trade offs between income and other relevant socio-economic and ecological dimensions. Furthermore, it adds new quantitative evidence to the already vast literature criticizing GDP as the most prominent measure of well-being. Keywords: Gross domestic product, well-being indicators, data reduction techniques, principal component analysis, random matrix Classification-JEL: C43, I30, I31 Creation-Date: 2022-06 Template-Type: ReDIF-Paper 1.0 Number: 2022.16 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-016.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.16 Title: The Energy Transition and the Value of Capacity Remuneration Mechanisms Author-Name: Cinzia Bonaldo Author-X-Name-First: Cinzia Author-X-Name-Last: Bonaldo Author-WorkPlace-Name: Department of Management Engineering, University of Padua Author-Name: Fulvio Fontini Author-X-Name-First: Fulvio Author-X-Name-Last: Fontini Author-WorkPlace-Name: Department of Economics and Management and Interdepartmental Centre "Giorgio Levi Cases" for Energy Economics and Technology, University of Padua Author-Name: Michele Moretto Author-X-Name-First: Michele Author-X-Name-Last: Moretto Author-WorkPlace-Name: Department of Economics and Management, Interdepartmental Centre "Giorgio Levi Cases" for Energy Economics and Technology, University of Padua and Fondazione Eni Enrico Mattei (FEEM) Abstract: Capacity Remuneration Mechanisms (CRM) can be used in power markets to overtake market failures, reaching security of supply. However, investment in capacity is a dynamic process, that depends on the evolution of prices and costs overtime. In our paper we study the capacity remuneration value through a CRM depending on three possible different technologies that participate to the market: a Variable Renewable Energy (VRE) source; a thermal efficient plant (i.e. Combine Cycle Gas Turbine) and a brown plant (i.e. coal). We shall see that these three types of capacities can be framed by means of a common theoretical framework, whose level of complexity increases as the uncertainty rises, moving from the simplest scheme (VRE technology) to the most complex one (coal power plant). For these different technological provisions, we consider how to evaluate them focusing on their investment value by adopting a stochastic approach; we first provide a theoretical framework and then sensitivity analysis and calibration results. We show that for all three technology considered the effect of the CRM is to cap the firm revenues and as consequence it decreases their value. Keywords: energy transition, capacity remuneration mechanism, price cap, renewable energies, investment value Classification-JEL: Q40, C60, D80 Creation-Date: 2022-07 Template-Type: ReDIF-Paper 1.0 Number: 2022.17 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-017-2.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.17 Title: Finance and the Reallocation of Scientific, Engineering and Mathematical Talent Author-Name: Giovanni Marin Author-X-Name-First: Giovanni Author-X-Name-Last: Marin Author-WorkPlace-Name: University of Urbino ‘Carlo Bo’, SEEDS, Ferrara Author-Name: Francesco Vona Author-X-Name-First: Francesco Author-X-Name-Last: Vona Author-WorkPlace-Name: University of Milan, Fondazione Eni Enrico Mattei, and OFCE Abstract: The US financial sector has become a magnet for the brightest graduates in the science, technology, engineering and mathematical fields (STEM). We provide quantitative bases for this anecdotal fact for the US, over the period 1980-2019 and with a specific focus on the last decade where information on major fields of study is available. First, we show that long-run educational upgrading of finance was biased towards STEM graduates, especially for postgraduates, and accelerated in the last decade. Second, the STEM upgrading also occurs within finance and business occupations, matching a task reorientation towards mathematics in those occupations. Third, STEM reallocation towards finance is more pronounced among experienced workers peaking at prime age. Fourth, the reallocation of STEM is associated with large wage premia in finance, which are heterogeneous across occupations, age groups, degrees and along the wage distribution. Returns to STEMs are higher than returns to other degrees in finance and become very high in finance and managerial occupations at the top of the distribution, especially for postgraduates. Keywords: Finance industry, finance occupations, STEM labour markets, reallocation, technological change Classification-JEL: E24, G28, I26, J24, J31 Creation-Date: 2022-07 Template-Type: ReDIF-Paper 1.0 Number: 2022.18 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-018-1.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.18 Title: Neutralizing the Tentacles of Organized Crime. Assessment of an Anti-Crime Measure in Fighting Mafia Violence Author-Name: Anna Laura Baraldi Author-X-Name-First: Anna Laura Author-X-Name-Last: Baraldi Author-WorkPlace-Name: Department of Economics, University of Campania Author-Name: Erasmo Pagani Author-X-Name-First: Erasmo Author-X-Name-Last: Pagani Author-WorkPlace-Name: Department of Law, University of Naples Federico II Author-Name: Marco Stimolo Author-X-Name-First: Marco Author-X-Name-Last: Stimolo Author-WorkPlace-Name: Department of Economics, University of Campania Abstract: Organized crime reinforces its corrupting influence on politics through violent intimidation. Anti-crime measures that increase the cost of corruption but not of the exercise of violence might accordingly lead mafia-style organizations to retaliate by resorting to violence in lieu of bribery. On the other hand, anti-corruption measures might also induce criminal clans to go inactive, owing to the higher “entry barriers” to the “business” of influencing politics, which would reduce violence. To determine which of these possible effects is prevalent, we undertake an empirical assessment of the impact of city council dissolution for mafia influence as prescribed by Decree Law 164/1991 in discouraging violence against politicians in the period 2010-2019. Our difference-in-differences analysis shows that in the dissolved municipalities the enforcement of the Law reduces violence, the effect persisting for two electoral rounds. Also, we find spillover effects moderating violence in undissolved neighboring municipalities. These findings are robust to a series of endogeneity tests. Keywords: Organized Crime, Violence, Anti-corruption measures, Spillovers Classification-JEL: C25, D73, D78, I38, K42 Creation-Date: 2022-07 Template-Type: ReDIF-Paper 1.0 Number: 2022.19 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-019.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.19 Title: Climate alpha and the global capital market Author-Name: Alexander Golub Author-X-Name-First: Alexander Author-X-Name-Last: Golub Author-WorkPlace-Name: American University and Climate Equity Research Author-Name: Jon Anda Author-X-Name-First: Jon Author-X-Name-Last: Anda Author-WorkPlace-Name: Climate Equity Research Author-Name: Anil Markandya Author-X-Name-First: Anil Author-X-Name-Last: Markandya Author-WorkPlace-Name: Basque Centre for Climate Change Author-Name: Michael Brody Author-X-Name-First: Michael Author-X-Name-Last: Brody Author-WorkPlace-Name: George Mason University Author-Name: Aldin Celovic Author-X-Name-First: Aldin Author-X-Name-Last: Celovic Author-WorkPlace-Name: SA Consulting GmbH Author-Name: Angele Kedaitiene Author-X-Name-First: Angele Author-X-Name-Last: Kedaitiene Author-WorkPlace-Name: Lithuanian Environment Agency Abstract: The way in which climate policy and climate risks are currently accounted for in financial and real investment decisions is inadequate. The paper demonstrates weaknesses in methods presently used and proposes an alternative that aims to bridge the duration gap between climate policy modeling and mitigation capital. The core tool is real options analysis combined with an Integrated Assessment Framework designed to capture the complex set of issues linking climate change, climate policy and the economy. The tools are meant for use in both capex decisions by corporations and portfolio decisions by investors. The tools will be a hedge against the risk of mitigation short squeeze occurring because investment is deferred beyond the 5 year or less timeframe of finance. Keywords: Climate alpha, option value, abatement short squeeze, green transition Classification-JEL: G11, G17, G18, Q54 Creation-Date: 2022-08 Template-Type: ReDIF-Paper 1.0 Number: 2022.20 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-020.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.20 Title: Agent-Based Models for Climate Change Adaptation in Coastal Zones. A Review Author-Name: Jlenia Di Noia Author-X-Name-First: Jlenia Author-X-Name-Last: Di Noia Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Worldwide, with different frequencies and magnitudes, coastlines are increasingly being affected by climate change hazards. The high urbanization rate, due to economic opportunities and natural amenities, further exacerbates vulnerabilities in these areas, requiring prompt and effective adaptation to climate induced events –from gradual sea level rise to abrupt storms and floods. The ability of different actors (households, firms, financial entities and Government) to cope with such events can be addressed and studied through the use of agent-based models, which allow for an heterogeneous treatment of agents’ behaviour, from individual risk perceptions’ modelling to decision-making rules on the adaptation option to be put into practice (whether related to coastal management or to coastal defense). Since the natural system needs to be considered together with the socio-economic human system, if we are willing to enhance sustainable practices, integrated-assessment models can be used as a tool to account for these interrelated complexities. A comprehensive review on integrated-assessment agentbased models on climate change adaptation in coastal zones, thus, is here provided to investigate the current state of the art. Keywords: Agent-based models, Integrated-assessment models, Review, Climate change, Adaptation, Coastal zones Classification-JEL: C63, Q01, Q26, Q54 Creation-Date: 2022-08 Template-Type: ReDIF-Paper 1.0 Number: 2022.21 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-021.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.21 Title: System Dynamics modelling and Climate Change Adaptation in Coastal Areas: A literature review Author-Name: Alberto Gabino Martínez-Hernández Author-X-Name-First: Alberto Gabino Author-X-Name-Last: Martínez-Hernández Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Abstract: Climate change impacts in coastal areas (CA) have exposed coastal ecosystems to unprecedented conditions. System dynamic modelling (SD) has been used as a powerful tool to improve climate change adaptation (CCA) strategies. However, until now there are no review papers that summarize how academic literature that employs SD modelling has addressed CCA in CA. Hence, the main objective of this study is to provide an overview of the state of the art of this field. A systematic literature review was chosen as the main method of analysis, which was complemented with a bibliometric analysis and a categorization of the main contents of the papers selected. Our results suggest that the literature is clustered in three groups: physical or social impacts, water and agriculture management, as well as ecosystem services. Following the classification of key representative risks (KRK) of the IPCC, some topics have been addressed more than others. Most papers focus on Disaster Risk Reduction (DRR) compared to adaptation to slow onset hazards. Besides, research in developing countries remains scarce, except for the case of Vietnam. One group of models seem to be in an advanced stage or abstract enough to be applied in other areas, whereas another group is better suited for local modelling. Quantitative SD modelling has been preferred compared to qualitative or mixed approaches. Finally, Stella and Vensim seem to be the most popular platforms to run simulations. Keywords: Climate change adaptation, Coastal areas, System dynamics modelling, Environmental modelling, Literature review Classification-JEL: C61, C63, Q54 Creation-Date: 2022-08 Template-Type: ReDIF-Paper 1.0 Number: 2022.22 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-022.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.22 Title: Financial implications of the EU Emission Trading System: an analysis of wavelet coherence and volatility spillovers Author-Name: Pietro De Ponti Author-X-Name-First: Pietro Author-X-Name-Last: De Ponti Author-WorkPlace-Name: Department of Economics, Management and Statistics, University of Milano-Bicocca Author-Name: Matteo Romagnoli Author-X-Name-First: Matteo Author-X-Name-Last: Romagnoli Author-WorkPlace-Name: Department of Economics, Management and Statistics, University of Milano-Bicocca Abstract: We study the European Union’s Emission Trading System (EU ETS) from a financial perspective. Using ARMA-eGARCH filtered volatilities, we first discuss the evolution of the volatility of EU ETS allowances’ returns from 2008 to 2021. Second, we study the degree of co-movement and interdependence between the EU ETS returns’ volatility and those of 37 large companies in industries subject to the System; to this end, we employ Wavelet Coherence and Volatility Spillovers Analyses. Despite spotting seasons of co-movement between volatilities in the markets under consideration, the market performances of the companies in our sample are not particularly responsive to the EU ETS dynamics, except for temporary seasons of interconnection in correspondence of relevant policy changes. Keywords: EU Emission Trading System, volatility spillovers, wavelet coherence Classification-JEL: C22, G11, Q58 Creation-Date: 2022-08 Template-Type: ReDIF-Paper 1.0 Number: 2022.23 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-023.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.23 Title: Sustainability assessment of the public interventions supported by the ReSTART project in the CITI4GREEN framework Author-Name: Laura Cavalli Author-X-Name-First: Laura Author-X-Name-Last: Cavalli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Mia Alibegovic Author-X-Name-First: Mia Author-X-Name-Last: Alibegovic Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Davide Vaccari Author-X-Name-First: Davide Author-X-Name-Last: Vaccari Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Andrea Spasiano Author-X-Name-First: Andrea Author-X-Name-Last: Spasiano Author-WorkPlace-Name: Water Resources Research and Documentation Center, Università per Stranieri di Perugia Author-Name: Fernando Nardi Author-X-Name-First: Fernando Author-X-Name-Last: Nardi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Water Resources Research and Documentation Center, Università per Stranieri di Perugia Abstract: As part of the CITI4GREEN project, this contribution analyzes the public interventions contained in Re-START “Territorial Resilience of the Central Apennines Earthquake Reconstruction” assessing their impacts on the sustainability guidelines posed by the United Nations through the establishment of the 2030 Agenda and its 17 Sustainable Development Goals (SDGs). To do so, the paper applies the methodology developed in Cavalli et al. (2020, 2021) to the 1278 reconstruction, repair, and restoration works in the Italian regions of Abruzzo, Lazio, Marche, and Umbria, affected by the seismic events of 2016 and 2017. The results are a clear priority given to Goal 4, “Quality education” which accounts for the 24.2% of the investments that af-fect the Agenda. Goal 11, “Sustainable cities and communities” takes the second place with 19.8%. Goals 14 “Life below water” and 7 “Affordable and clean energy” are, respectively, last and second last. All the three pillars of sustainability — environmental, social, and economic — are embraced by the public interventions. However, clear priority has been given to social and environmental sustainability. The economic dimension results under-represented. Additional policies are needed to ensure a more integrated sustainable development. Keywords: sustainable development, SDGs, cohesion policy, public finance, sustainability assessment Classification-JEL: R58, H83, C43, Q56 Creation-Date: 2022-08 Template-Type: ReDIF-Paper 1.0 Number: 2022.24 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-024.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.24 Title: The Impact of the European Carbon Market on Firm Productivity: Evidence from Italian Manufacturing Firms Author-Name: Filippo Maria D’Arcangelo Author-X-Name-First: Filippo Maria Author-X-Name-Last: D’Arcangelo Author-WorkPlace-Name: OECD Author-Name: Giulia Pavan Author-X-Name-First: Giulia Author-X-Name-Last: Pavan Author-WorkPlace-Name: Compass Lexecon Author-Name: Sara Calligaris Author-X-Name-First: Sara Author-X-Name-Last: Calligaris Abstract: The European Union Emissions Trading System has raised concerns about possible detrimental effects on firms production through an increase in polluting costs, unless firms change inputs or increase the efficiency in the way they produce. We provide evidence of the causal impact of this policy on firms’ input choices and on total factor productivity on Italian manufacturing firms. Our empirical strategy combines structural estimation of firms’ production function and techniques for policy evaluation. Moreover, we argue that a commonly used strategy in this literature, consisting in using propensity score matching on the productivity obtained from estimating the production function, does not provide valid inference. We rely instead on an innovative structural approach. We find that the policy has a small negative effect on productivity that is heterogeneous across industries. We show that these findings are consistent with firms switching fuels in production, rather than undergoing a substantial process change. Keywords: Emission trading, EU ETS, Environmental Policy, Manufacturing, Productivity, Production Function Classification-JEL: Q58, L23, L26 Creation-Date: 2022-09 Template-Type: ReDIF-Paper 1.0 Number: 2022.25 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-025-1.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.25 Title: Energy price shocks and stabilization policies in a multi-agent macroeconomic model for the Euro Area Author-Name: Enrico Turco Author-X-Name-First: Enrico Author-X-Name-Last: Turco Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Complexity Lab in Economics, Department of Economics and Finance, Catholic University of Milan Author-Name: Davide Bazzana Author-X-Name-First: Davide Author-X-Name-Last: Bazzana Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, Department of Economics and Management, University of Brescia Author-Name: Massimiliano Rizzati Author-X-Name-First: Massimiliano Author-X-Name-Last: Rizzati Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Emanuele Ciola Author-X-Name-First: Emanuele Author-X-Name-Last: Ciola Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, Department of Economics and Management, University of Brescia Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei, Department of Economics and Management, University of Brescia Abstract: Soaring energy prices since fall 2021 have prompted European governments to introduce policy measures to support households and businesses. In this paper, we employ the MATRIX model, a multi-sector and multi-agent macroeconomic model calibrated on the Euro Area, to analyze the economic and distributional effects of different types of macro-stabilization policies in response to energy price shocks. Simulation results show that, in the absence of stabilization policies, an increase in fossil fuel price would lead to a sharp growth in price inflation and a severe contraction in real GDP, followed by a slow but steady recovery. We find no significant effects of generalized tax cuts and household subsidies, while firm subsidies promote a faster recovery but at the expense of greater financial instability in the medium term due to the resulting market distortions. If timely adopted, government-funded energy tariff reduction is the most effective policy in mitigating GDP losses at relatively low public costs, especially if coupled with an extra-profit tax on energy firms. Energy entrepreneurs benefit from rising fuel prices in all policy scenarios, but to a lesser extent under energy tariff cuts and windfall profits tax, favouring, in that case, workers and downstream firms owners. Keywords: Energy shocks, Policy analysis, Agent-based models, Macroeconomic dynamics Classification-JEL: C63, E63, O13, Q43 Creation-Date: 2022-09 Template-Type: ReDIF-Paper 1.0 Number: 2022.26 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-026.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.26 Title: Citizens’ Protests: causes and consequences. A Research on Regime Change and Revolutionary Entrepreneurs by Bueno De Mesquita Author-Name: Mario Gilli Author-X-Name-First: Mario Author-X-Name-Last: Gilli Author-WorkPlace-Name: Department of Economics, Management and Statistics and Center for European Studies, University of Milano-Bicocca Author-Name: Filippo Giorgini Author-X-Name-First: Filippo Author-X-Name-Last: Giorgini Author-WorkPlace-Name: Department of Economics, Management and Statistics and Center for European Studies, University of Milano-Bicocca Abstract: Citizens political participation to protests is a crucial issue for any political system, whether democratic or autocratic. Political systems have different ways of dealing with citizens’ protests, determining cost and benefit of public dissent, responding to public requests and allowing different degree of transparency in public information. Also the social characteristics of a country, such as citizens’ diversity and radicalization, matter for citizens political participation. The aim of this paper is to analyze causes and consequences of citizens’ protests, focusing on how private and public information affect citizens’ opinion and political behavior, and on how they depend on sociopolitical factors as well as on the political regime. In Regime Change and Revolutionary Entrepreneurs, Bueno de Mesquita proposed a seminal model to study why revolutionary vanguards might use violence to mobilize citizens against a regime. We claim that the model can be used more generally to investigate citizens’ protest. We refer to his model to understand citizens’ political behavior, studying the relationship between the model’s structural parameters and the causes and consequences of citizens’protests, adopting a partially different approach and extending his results. Keywords: protests, political regimes, sociopolitical variables Classification-JEL: C72, D74, P48 Creation-Date: 2022-09 Template-Type: ReDIF-Paper 1.0 Number: 2022.27 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-027.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.27 Title: Environmental Policy and Investment Location: The Risk of Carbon Leakage in the EU ETS Author-Name: Filippo Maria D'Arcangelo Author-X-Name-First: Filippo Maria Author-X-Name-Last: D'Arcangelo Author-WorkPlace-Name: OECD, Economics Department Author-Name: Marzio Galeotti Author-X-Name-First: Marzio Author-X-Name-Last: Galeotti Author-WorkPlace-Name: Department of Environmental Science and Policy, University of Milan and Fondazione Eni Enrico Mattei Abstract: This paper empirically investigates the effect of the European Emission Trading Scheme (EU ETS) on cross-country investments. To avoid carbon leakage, the scheme allocates a number of free allowances to firms at risk of relocating investments in areas outside the EU ETS. To study this problem, we employ a model of the firm’s investment decision in conjunction with novel firm-level data. In contrast with most previous literature, we stress the importance of firms’ heterogeneity in the analysis and leverage it. We derive conditions for the firm’s optimal emissions to construct a measure of investment sensitivity to carbon pricing from observed pollution data. This allows to identify the effect of the EU ETS on international investments by comparing the expected profits from investing in several different countries. We find that investments react to carbon pricing and that the effect is stronger for more polluting investments. However, the aggregate amount of diverted investments is small. We moreover show that the lost investments do not justify, alone, the generous compensations scheme aimed at retaining investments. Keywords: Emission trading, carbon leakage, investment location, EU ETS Classification-JEL: D22, F18, Q52, Q54 Creation-Date: 2022-10 Template-Type: ReDIF-Paper 1.0 Number: 2022.28 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-028-1.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.28 Title: The Political Consequences of Green Policies: Evidence from Italy Author-Name: Italo Colantone Author-X-Name-First: Italo Author-X-Name-Last: Colantone Author-WorkPlace-Name: Bocconi University, Baffi-Carefin Research Center and CESifo Author-Name: Livio Di Donaldo Author-X-Name-First: Livio Author-X-Name-Last: Di Donaldo Author-WorkPlace-Name: Bocconi University, Dondena Research Center Author-Name: Yotam Margalit Author-X-Name-First: Yotam Author-X-Name-Last: Margalit Author-WorkPlace-Name: Tel Aviv University, Department of Political Science Author-Name: Marco Percoco Author-X-Name-First: Marco Author-X-Name-Last: Percoco Author-WorkPlace-Name: Bocconi University, GREEN Research Center Abstract: For many governments, enacting green policies is a priority, but such policies often impose on citizens substantial and uneven costs. How does the introduction of green policies a?ect voting? We study this question in the context of a major ban on polluting cars introduced in Milan, which was strongly opposed by the populist right party Lega. Using several inferential strategies, we show that owners of banned vehicles—who incurred a median loss of €3,750—were significantly more likely to vote for Lega in the subsequent elections. Our analysis indicates that this electoral change did not stem from a broader shift against environmentalism, but rather from disaffection with the policy’s uneven pocketbook implications. In line with this pattern, recipients of compensation from the local government were not more likely to switch to Lega. The findings highlight the central importance of distributive consequences in shaping the political ramifications of green policies. Keywords: environmental politics, green policies, distributional consequences. Classification-JEL: P100, D700, Q500 Creation-Date: 2022-10 Template-Type: ReDIF-Paper 1.0 Number: 2022.29 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-029.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.29 Title: Digging into the Technological Dimension of Environmental Productivity Author-Name: Filippo Belloc Author-X-Name-First: Filippo Author-X-Name-Last: Belloc Author-WorkPlace-Name: Department of Economics and Statistics, University of Siena Author-Name: Edilio Valentini Author-X-Name-First: Edilio Author-X-Name-Last: Valentini Author-WorkPlace-Name: Department of Economic Studies, University of Chieti-Pescara Abstract: We propose a mixture model approach to identify locally optimal technologies and to dissect environmental productivity (output produced per unit of emission) into a technological and a managerial component. For a large sample of plants covered by the EU ETS, we find that the share of plants adopting the frontier technology is about 21%. We also find that the average output gains that plants could reach by adopting optimal technologies and managerial practices are 75% and 80% respectively. These results remain qualitatively similar after addressing endogeneity of emissions. Finally, we match EU ETS data with balance-sheet data on parent companies and find that better environmental technologies tend to be adopted by larger, listed, multi-plant and international companies, while older firms and firms with higher intangibles assets intensity more commonly show improved environmental management. Our results suggest that existing technologies have large unexploited potentials and deliver important insights for policy. Keywords: Environmental productivity, Emission intensity, Environmental technology, Environmental management Classification-JEL: D24, L60, Q54, Q55 Creation-Date: 2022-10 Template-Type: ReDIF-Paper 1.0 Number: 2022.30 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-030.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.30 Title: China’s Carbon Market: Development, Evaluation, Coordination of Local and National Carbon Markets and Common Prosperity Author-Name: ZhongXiang Zhang Author-X-Name-First: ZhongXiang Author-X-Name-Last: Zhang Author-WorkPlace-Name: Ma Yinchu School of Economics, Tianjin University and China Academy of Energy, Environmental and Industrial Economics Abstract: To achieve the commitments to both carbon peaking and carbon neutrality, China should focus on those policies of significant impact on emissions reduction at the lowest cost. Launching the national carbon market with the power generation sector is a good start point in this direction. Since its operation, the carbon price has not experienced sharp fluctuations, and falls within a range of CNY40~60 per ton. The block agreement transaction dominates trading, but with an average discount rate of 9.6% in block agreement, the aforementioned carbon prices overestimate the overall carbon prices. While the overall compliance rate measured against entities reached about 94.4%, there are significant differences across provinces, with compliance rate ranging from 82.9% to a full 100% compliance. Entities engaging in trading are mainly for compliance, and therefore transaction is driven by compliance. This article argues that the development of the carbon market requires further reform of the electricity pricing mechanism and the coordinated development of various related markets. With respect to national carbon trading scheme itself, the article discusses the areas where more work needs to be done to ensure that the national carbon emissions trading scheme functions properly. This involves carbon emissions trading legislation, further improvement in the rules conducive to the use of carbon emissions trading as a market tool, and the expansion of the participating industries and the scope of the carbon market in terms of diversifying market players and increasing trading varieties. Given the co-existence of the national carbon market and regional carbon market pilots, the article suggests the specific areas for the regional carbon markets to take the initiative to strengthen the synergistic effects of national carbon market. Furthermore, the article strongly recommends to continuously increase the proportion of carbon allowances auctions, and to set up a transformation fund from the proceeds of paid allocation of allowances to support the transformation and upgrading of regions with low levels of development and technology in China. Keywords: Carbon market, Carbon price, Electricity market, Allowance allocation, Common prosperity Classification-JEL: Q48, Q53, Q55, Q58, O13, P28, R11, H23 Creation-Date: 2022-10 Template-Type: ReDIF-Paper 1.0 Number: 2022.31 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-031-1.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.31 Title: Who’s fit for the low-carbon transition? Emerging skills and wage gaps in job and data Author-Name: Aurélien Saussay Author-X-Name-First: Aurélien Author-X-Name-Last: Saussay Author-WorkPlace-Name: Grantham Research Institute, London School of Economics and Political Science and OFCE, Sciences Po Author-Name: Misato Sato Author-X-Name-First: Misato Author-X-Name-Last: Sato Author-WorkPlace-Name: Grantham Research Institute, London School of Economics and Political Science Author-Name: Francesco Vona Author-X-Name-First: Francesco Author-X-Name-Last: Vona Author-WorkPlace-Name: University of Milan, Fondazione Eni Enrico Mattei and OFCE, Sciences Po Author-Name: Layla O’Kane Author-X-Name-First: Layla Author-X-Name-Last: O’Kane Author-WorkPlace-Name: Lightcast Abstract: As governments worldwide increase their commitments to tackling climate change, the number of low-carbon jobs are expected to grow rapidly. Here we provide evidence on the characteristics of low-carbon jobs in the US using comprehensive online job postings data between 2010-2019. By accurately identifying low-carbon jobs and comparing them to similar jobs in the same occupational group, we show that low-carbon jobs differ from high-carbon or generic jobs in a number of important ways. Low-carbon jobs have higher skill requirements across a broad range of skills, especially technical ones. However, the wage premium for low-carbon jobs has declined over time and the geographic overlap between low- and high-carbon jobs is limited. Overall, our findings suggest the low-carbon transition entails potentially high labour reallocation costs associated with re-skilling and earning losses, indicating public investments in skills is needed to deliver a smooth and rapid transition. Keywords: Low-carbon jobs, fossil-fuel jobs, skill gaps, job vacancy data, green wage premium, distributional effects, low-carbon transition Classification-JEL: J23, J24, J31, Q52, Q54 Creation-Date: 2022-10 Template-Type: ReDIF-Paper 1.0 Number: 2022.32 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-032.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.32 Title: Inequality and Climate Change: Two Problems, One Solution? Author-Name: Francesco Nicolli Author-X-Name-First: Francesco Author-X-Name-Last: Nicolli Author-WorkPlace-Name: Department of Economics and Management, University of Ferrara Author-Name: Marianna Gilli Author-X-Name-First: Marianna Author-X-Name-Last: Gilli Author-WorkPlace-Name: Department of Economics and Management, University of Ferrara Author-Name: Francesco Vona Author-X-Name-First: Francesco Author-X-Name-Last: Vona Author-WorkPlace-Name: University of Milan, Fondazione Eni Enrico Mattei and OFCE, Sciences Po Abstract: This paper re-examines the relationship between per capita income, inequality, and per capita emissions while accounting for nonhomotheticity in green preferences and nonlinearities in the impact of economic growth on GHG emissions. Theoretically, our research is motivated by the fact that if environmental quality is a need with low priority on the hierarchical scale, the effect of inequality on emissions should vary depending on the level of income per capita. Specifically, for a given level of income per capita, a richer median voter will be more likely to approve of more stringent environmental policies, and thus, lower inequality is beneficial for the environment. With nonhomothetic preferences, the beneficial environmental effect of reducing inequality emerges only for countries that are sufficiently rich. We test this hypothesis by augmenting a standard EKC equation with the interaction between income per capita and the Gini coefficient. Our results for CO2, SO2 and N2O emissions corroborate our main hypothesis: reducing inequality is beneficial for the environment only for rich countries. Keywords: Inequality, Climate Change, GHG Emissions, Environmental Kuznets Curve, Sustainable Development Goals, Political Economy Classification-JEL: Q53, Q56, O15 Creation-Date: 2022-11 Template-Type: ReDIF-Paper 1.0 Number: 2022.33 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-033.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.33 Title: Routinization, Within-Occupation Task Changes and Long-Run Employment Dynamics Author-Name: Davide Consoli Author-X-Name-First: Davide Author-X-Name-Last: Consoli Author-WorkPlace-Name: INGENIO CSIC-UPV Author-Name: Giovanni Marin Author-X-Name-First: Giovanni Author-X-Name-Last: Marin Author-WorkPlace-Name: Department of Economics, Society and Politics, University of Urbino Carlo Bo and SEEDS Author-Name: Francesco Rentocchini Author-X-Name-First: Francesco Author-X-Name-Last: Rentocchini Author-WorkPlace-Name: European Commission, Joint Research Centre and Department of Economics, Management and Quantitative Methods, University of Milan Author-Name: Francesco Vona Author-X-Name-First: Francesco Author-X-Name-Last: Vona Author-WorkPlace-Name: University of Milan, Fondazione Eni Enrico Mattei and OFCE, Sciences Po Abstract: The present study adds to the literature on routinization and employment by capturing within-occupation task changes over the period 1980-2010. The main contributions are the measurement of such changes and the combination of two data sources on occupational task content for the United States: the Dictionary of Occupational Titles and the Occupational Information Network. We show that within-occupation reorientation away from routine tasks: i) accounts for 1/3 of the decline in routine-task use; ii) accelerates in the 1990s, decelerates in the 2000s but with significant convergence across occupations; iii) allows workers to escape the employment and wage decline, conditional on the initial level of routine-task intensity. The latter finding suggests that task reorientation is a key channel through which labour markets adapt to various forms of labour-saving technological change. Abstract: The present study adds to the literature on routinization and employment by capturing within occupation task changes over the period 1980-2010. The main contributions are the measurement of such changes and the combination of two data sources on occupational task content for the United States: the Dictionary of Occupational Titles and the Occupational Information Network. We show that within-occupation reorientation away from routine tasks: i) accounts for 1/3 of the decline in routine-task use; ii) accelerates in the 1990s, decelerates in the 2000s but with significant convergence across occupations; iii) allows workers to escape the employment and wage decline, conditional on the initial level of routine-task intensity. The latter finding suggests that task reorientation is a key channel through which labour markets adapt to various forms of labour-saving technological change. Keywords: Tasks, Routinization, Technological Change, Employment Dynamics, Race between Technology and Education Classification-JEL: J23, J24, O33 Creation-Date: 2022-11 Template-Type: ReDIF-Paper 1.0 Number: 2022.34 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-034.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.34 Title: Fiscal policy response of local governments to floods in Italy Author-Name: Chiara Lodi Author-X-Name-First: Chiara Author-X-Name-Last: Lodi Author-WorkPlace-Name: Department of Economics, Society, Politics, University of Urbino Carlo Bo and SEEDS Author-Name: Giovanni Marin Author-X-Name-First: Giovanni Author-X-Name-Last: Marin Author-WorkPlace-Name: Department of Economics, Society, Politics, University of Urbino Carlo Bo and SEEDS Author-Name: Marco Modica Author-X-Name-First: Marco Author-X-Name-Last: Modica Author-WorkPlace-Name: Gran Sasso Science Institute Abstract: This paper aims at empirically testing the dynamics of budget outcomes of Italian municipalities in the aftermath of floods, by accounting for heterogeneous levels of resilience and vulnerability to natural disasters. Our findings, based on a dynamic difference-in-difference after propensity score matching, point to substantial impacts in terms of increased capital expenditure and revenues from transfer, which also depend on the degree of resilience and vulnerability. Through our analysis we account for multiple aspects of risk so we can support policy decisions related to both ex-ante and ex-post disaster occurrence management. Keywords: Floods, Fiscal Policy of Local Governments, Resilience, Vulnerability Classification-JEL: H2, H72, Q54 Creation-Date: 2022-11 Template-Type: ReDIF-Paper 1.0 Number: 2022.35 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-035.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.35 Title: A review of macroeconomic models for the WEFE nexus assessment Author-Name: Chiara Castelli Author-X-Name-First: Chiara Author-X-Name-Last: Castelli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Wiener Institut fur Internationale Wirtschaftsvergleiche Author-Name: Marta Castellini Author-X-Name-First: Marta Author-X-Name-Last: Castellini Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Civil, Environmental and Architectural Engineering, University of Padua Author-Name: Emanuele Ciola Author-X-Name-First: Emanuele Author-X-Name-Last: Ciola Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia Author-Name: Camilla Gusperti Author-X-Name-First: Camilla Author-X-Name-Last: Gusperti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Ilenia Gaia Romani Author-X-Name-First: Ilenia Gaia Author-X-Name-Last: Romani Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia Abstract: The Water, Energy, Food and Ecosystems (WEFE) nexus refers to the system of complex and highly non-linear interconnections between these four elements. It now represents the basic framework to assess and design policies characterized by an holistic environmental end economical perspective. In this work, we provide a systematic review of the macroeconomic models investigating its components as well as combinations of them and their interlinkages with the economic system. We focus on four different types of macroeconomic models: Computable General Equilibrium (CGE) models, Integrated Assessment Models (IAMs), Agent-based Models (ABMs), and Dynamic Stochastic General Equilibrium (DSGE) models. On the basis of our review, we find that the structure of IAMs is currently the most used to represent the nexus complexity, while DSGE models focus only on single components but appear to be better suited to account for the randomization of exogenous shocks. CGE models and ABMs could be more effective on the side of the policy perspective. Indeed, the former can account for interlinkages across sectors and countries, while the latter can define theoretical frameworks that better approximate reality. Keywords: Agent-based, Computable general equilibrium, Dynamic stochastic general equilibrium, Integrated assessment, Macroeconomic models, Water-energy-food ecosystems nexus Classification-JEL: Q18, Q25, Q43, Q54, Q57 Creation-Date: 2022-11 Template-Type: ReDIF-Paper 1.0 Number: 2022.36 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-036.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.36 Title: ESG Factors and Firms’ Credit Risk Author-Name: Laura Bonacorsi Author-X-Name-First: Laura Author-X-Name-Last: Bonacorsi Author-WorkPlace-Name: Department of Social and Political Sciences, Bocconi University Author-Name: Vittoria Cerasi Author-X-Name-First: Vittoria Author-X-Name-Last: Cerasi Author-WorkPlace-Name: Italian Court of Auditors and CefES & O-Fire, University of Milano-Bicocca Author-Name: Paola Galfrascoli Author-X-Name-First: Paola Author-X-Name-Last: Galfrascoli Author-WorkPlace-Name: Department of Economics, Management and Statistics and CefES & O-Fire, University of Milano-Bicocca Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: Department of Economics, Management and Statistics, University of Milano-Bicocca and Fondazione Eni Enrico Mattei Abstract: We study the relationship between the risk of default and Environmental, Social and Governance (ESG) factors using Supervised Machine Learning (SML) techniques on a cross-section of European listed companies. Our proxy for credit risk is the z-score originally proposed by Altman (1968). We consider an extensive number of ESG raw factors sourced from the rating provider MSCI as potential explanatory variables. In a first stage we show, using different SML methods such as LASSO and Random Forest, that a selection of ESG factors, in addition to the usual accounting ratios, helps explaining a firm’s probability of default. In a second stage, we measure the impact of the selected variables on the risk of default. Our approach provides a novel perspective to understand which environmental, social responsibility and governance characteristics may reinforce the credit score of individual companies. Keywords: Credit risk, Z-scores, ESG factors, Machine learning Classification-JEL: C5, D4, G3 Creation-Date: 2022-11 Template-Type: ReDIF-Paper 1.0 Number: 2022.37 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-037.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.37 Title: Renewable energy communities, digitalization and information Author-Name: Dirk Bergemann Author-X-Name-First: Dirk Author-X-Name-Last: Bergemann Author-WorkPlace-Name: Department of Economics, Yale University and Fondazione Eni Enrico Mattei Author-Name: Marina Bertolini Author-X-Name-First: Marina Author-X-Name-Last: Bertolini Author-WorkPlace-Name: Department of Economics and Management, Levi Cases Centre and CRIEP, University of Padova Author-Name: Marta Castellini Author-X-Name-First: Marta Author-X-Name-Last: Castellini Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Civil, Environmental and Architectural Engineering, DICEA, University of Padova Author-Name: Michele Moretto Author-X-Name-First: Michele Author-X-Name-Last: Moretto Author-WorkPlace-Name: Department of Economics and Management, Levi Cases Centre and CRIEP University of Padova Author-Name: Sergio Vergalli Author-X-Name-First: Sergio Author-X-Name-Last: Vergalli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Economics and Management, University of Brescia Abstract: In this work we study the case of agents willing to engage in a Renewable Energy Community (REC). The municipality – being the promoter of the REC – burdens all the investment costs (RE plants, storage, local grid interventions) and entrusts an aggregator of its operation paying a fixed tariff. The latter, acting as a monopolist, is also the sole supplier of energy for the REC’s members. The management of the REC requires the collection of energy data from the members to assure its efficient operation on the side of the self-consumption and exchange of energy within it. Such data allow also the identification of the agents’ preferences across energy devices and are an additional source of revenues for the aggregator thanks to their sell to third parts. This behaviour translates into a dis-utility the agents, which we call privacy cost. In such a framework, we consider also uncertainty on the side of the investment cost. On the basis of the outcomes of our model, we are able to study the effect of data collection policy performed by the aggregator on the size of the REC, while also accounting for agents’ valuation and the role of uncertainty on the investment cost side. Keywords: Smart Grids, Renewable Energy Sources, Renewable Energy Communities, Prosumers, Peer to Peer Energy Trading, Information, Privacy Costs Classification-JEL: Q42, C61, D81 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.38 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-038.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.38 Title: Competition in Signaling Author-Name: Federico Vaccari Author-X-Name-First: Federico Author-X-Name-Last: Vaccari Author-WorkPlace-Name: Department of Economics and Management, University of Trento Abstract: I study a multi-sender signaling game between an uninformed decision maker and two senders with common private information and conflicting interests. Senders can misreport information at a cost that is tied to the size of the misrepresentation. The main results concern the amount of information that is transmitted in equilibrium and the language used by senders to convey such information. Fully revealing and pure-strategy equilibria exist but are not plausible. I first identify sufficient conditions under which equilibria are essentially unique, robust, and always exist, and then deliver a complete characterization of these equilibria. As an application, I study the informative value of different judicial procedures. Keywords: Signaling, Multi-sender, Competition, Misreporting, Communication Classification-JEL: C72, D72, D82 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.39 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-039.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.39 Title: Efficient Communication in Organizations Author-Name: Federico Vaccari Author-X-Name-First: Federico Author-X-Name-Last: Vaccari Author-WorkPlace-Name: Laboratory for the Analysis of Complex Economic Systems, IMT School of Advanced Studies Abstract: Organizations design their communication structures to improve decision-making while limiting wasteful influence activities. An efficient communication protocol grants complete information payoffs to all organization members, thereby overcoming asymmetric information problems at no cost. This paper characterizes efficient protocols assuming that: (i) some agents within the organization have the knowledge required for optimal decision-making; (ii) both the organization and consulted agents incur losses proportional to the exerted influence activities; and (iii) informed agents can discuss their strategies before being consulted. Under these assumptions, “public advocacy” is the unique efficient communication protocol. This result provides a novel rationale for public advocacy. Keywords: Information, Communication, Organizations, Efficiency, Costly Talk Classification-JEL: D23, D82, D83 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.40 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-040.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.40 Title: Influential News and Policy-making Author-Name: Federico Vaccari Author-X-Name-First: Federico Author-X-Name-Last: Vaccari Author-WorkPlace-Name: Laboratory for the Analysis of Complex Economic Systems, IMT School of Advanced Studies Abstract: This paper analyzes the implications of those types of interventions that affect misreporting costs. I study a model of communication between an uninformed voter and a media outlet that knows the quality of two competing candidates. The alternatives available to the voter are endogenously championed by the two candidates. I show that higher costs may lead to more misreporting and persuasion, whereas low costs result in full revelation. Yet, interventions that increase misreporting costs never directly harm the voter, but those that do so slightly can be wasteful of public resources. Regulation produced by politicians leads to suboptimal interventions. Keywords: Fake news, Misreporting, Media, Policy-making, Regulation, Disinformation Classification-JEL: D72, D82, D83, L51 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.41 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-041.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.41 Title: Welfare in Experimental News Markets Author-Name: Andrea Albertazzi Author-X-Name-First: Andrea Author-X-Name-Last: Albertazzi Author-WorkPlace-Name: Department of Economics and Statistics, University of Siena Author-Name: Matteo Ploner Author-X-Name-First: Matteo Author-X-Name-Last: Ploner Author-WorkPlace-Name: Department of Economics and Management, Cognitive and Experimental Economics Lab, CEEL, University of Trento Author-Name: Federico Vaccari Author-X-Name-First: Federico Author-X-Name-Last: Vaccari Author-WorkPlace-Name: Laboratory for the Analysis of Complex Economic Systems, IMT School of Advanced Studies Abstract: We perform a controlled experiment to study the welfare effects of competition in a strategic communication environment. Two equally informed senders with conflicting interests can misreport information at a cost. We compare a treatment where only one sender communicates to a treatment where both senders privately communicate with a decision-maker. Data show that competition between senders does not increase the amount of information decision-makers obtain. We find evidence of under-communication, as the information transmitted is lower than what theory predicts in the most informative equilibrium. Senders are worse off under competition because their relative gains from persuasion are more than offset by their expenditures in misreporting costs. As a result, competition between senders reduces the total welfare. Keywords: Experiment, Welfare, Multiple senders, Competition, Sender-receiver games Classification-JEL: C72, C92, D60 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.42 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-042.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.42 Title: Energy Dependency and Long-Run Growth Author-Name: Giacomo Novelli Author-X-Name-First: Giacomo Author-X-Name-Last: Novelli Author-WorkPlace-Name: Prometeia Abstract: We investigate whether the degree of energy dependency of countries influences their macroeconomic performance in terms of long-run growth. Specifically, we study whether the impact of energy price changes on economic growth differs depending on a country’s degree of energy dependency. There are two novel aspects in this paper. First, all energy commodities are considered, not only oil, and second, our work goes beyond the standard distinction between energy importing and exporting countries. We claim that energy importing and exporting countries are too heterogeneous in terms of net energy imports, energy consumption, and level of development to be clustered and analysed together. Relying on a sample clusterization in groups of countries with a similar degree of energy dependency and using a cross-sectionally augmented panel autoregressive distributed lag (CS-ARDL) approach, we show that countries with a high degree of energy dependency are associated with a negative and significant long-run energy price elasticity of GDP, while countries with a low degree experience the opposite effect, and more balanced countries are less or not significantly affected. Moreover, we contribute to the resource curse paradox showing that the energy price volatility negatively affects the long-run economic growth of countries with a low degree of energy dependency, but it does not hamper the long-run growth of other countries. We argue that the impact of energy price changes differs across countries with a different degree of energy dependency and that a balanced degree of energy dependency is preferable. Therefore, we suggest major energy importers should reduce their degree of energy dependency, while major energy exporters may differentiate their energy production, avoiding to rely only on fossil sources. Renewable sources may be a key driver to improve the management of the degree of energy dependency. Keywords: Energy Price, Volatility, Energy Security, Economic Growth, Heterogeneous Panel, Institutions, Resource Curse Classification-JEL: C23, C33, O43, Q33, Q43 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.43 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-043.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.43 Title: Orienting Flood Risk Management to Disaster Risk Creation: lessons from the Water Framework Directive Author-Name: Giacomo Cazzola Author-X-Name-First: Giacomo Author-X-Name-Last: Cazzola Author-WorkPlace-Name: EPiC Earth and Polis Research Centre, Fondazione Eni Enrico Mattei and Università Iuav di Venezia Abstract: This paper proposes an application of the analytical path assembled within my PhD research on Disaster Risk Creation (DRC) in humanitarian contexts, to Flood Risk Management (FRM) planning in Italy. The investigation concerns some key challenges, for spatial planning and disaster risk management, in understanding, evaluating, and addressing Disaster Risk (DR) drivers and pressures, those processes and land uses enhancing exposure, vulnerability and flood hazard itself. The reference methodological approach benefits from well-established theoretical models of causal analysis of Disaster Risk Creation processes as bridging analytical construct for reordering and coordinating flood risk management interventions. These theoretical and analytical reflections are build upon a gap between the European Water Framework and the Flood Directives that, despite their many interconnections and commonalities, differ in the focus (or lack of) on underlying causal factors. Thus, the Water Framework Directive provides a valuable operational reference for orienting flood risk management planning to the reduction of disaster risk creation components. Keywords: Flood Risk Management, European Flood Directive, Risk Driver, Spatial Planning Classification-JEL: Q54, R58 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.44 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-044.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.44 Title: Can electricity liberalisation foster the development of radical clean-energy technologies? Author-Name: Matteo Romagnoli Author-X-Name-First: Matteo Author-X-Name-Last: Romagnoli Author-WorkPlace-Name: Department of Economics, Management and Statistics, Università degli Studi di Milano-Bicocca Abstract: The paper investigates the effect of electricity liberalisation on the variety of clean energy patent’ search space to asses whether a more competitive electricity market can foster the development of radical clean-energy technologies. This idea is tested using a cross-section of patents filed in the period 1990-2017, a set of patent-level indicators and an instrumental variable approach. Results show that electricity liberalisation pushes clean-energy patents to cite knowledge from technological fields other than their own. However, the reform does not significantly affect the overall breath of the knowledge base of these patents. Additional insights are drawn by looking at the correlation between electricity liberalisation and an indicator of novelty in patents’ search space. The results are consistent with the claim that electricity liberalisation has a positive effect on the development of radical clean-energy technologies. At the same time, by describing how the reform changes clean-energy patents’ search space, they define this effect more precisely. Keywords: Clean-energy Technologies, Electricity Liberalisation, Climate Change, Patent Data Classification-JEL: L94, O31, Q42, Q55 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.45 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-045-Update.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.45 Title: Energy shocks in the Euro area: disentangling the pass-through from oil and gas prices to inflation Author-Name: Chiara Casoli Author-X-Name-First: Chiara Author-X-Name-Last: Casoli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Economics, Management and Statistics – DEMS, University of Milano-Bicocca Author-Name: Daniele Valenti Author-X-Name-First: Daniele Author-X-Name-Last: Valenti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Environmental Science and Policy – DESP, University of Milano Abstract: We develop a Bayesian Structural VAR (SVAR) model to study the relationship between different kinds of energy shocks and inflation dynamics in Europe. Specifically, we include in our specification two separate energy markets (oil and natural gas) and two target macroeconomic variables, measuring inflation expectations and the realized headline inflation. Our results demonstrate that, during the last year, inflation in the Euro area is more affected from energy price shocks, particularly those coming from the natural gas sector. The high peaks of the Eurozone inflation are mainly associated with gas consumption demand shocks and, to a lesser extent, to oil and gas supply shocks. Keywords: Energy shocks, Oil and gas markets, Inflation, Bayesian Structural VARs Classification-JEL: C11, E31, Q41, Q43 Creation-Date: 2022-12 Template-Type: ReDIF-Paper 1.0 Number: 2022.46 File-URL: https://feem-media.s3.eu-central-1.amazonaws.com/wp-content/uploads/NDL2022-046.pdf File-Format: application/pdf Handle: RePEc:fem:femwpa:2022.46 Title: Modelling the effects of climate change on economic growth: a Bayesian Structural Global Vector Autoregressive approach Author-Name: Maryam Ahmadi Author-X-Name-First: Maryam Author-X-Name-Last: Ahmadi Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Chiara Casoli Author-X-Name-First: Chiara Author-X-Name-Last: Casoli Author-WorkPlace-Name: Fondazione Eni Enrico Mattei Author-Name: Matteo Manera Author-X-Name-First: Matteo Author-X-Name-Last: Manera Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Economics, Management and Statistics – DEMS, University of Milano-Bicocca Author-Name: Daniele Valenti Author-X-Name-First: Daniele Author-X-Name-Last: Valenti Author-WorkPlace-Name: Fondazione Eni Enrico Mattei and Department of Environmental Science and Policy – DESP, University of Milano Abstract: The identification of the effects of climate shocks on economic growth is central to design effective policies aiming at managing the future global climate change challenge. In this study, we investigate the effects of temperature and precipitation shocks on economic growth across different countries by means of a new methodology, namely a Bayesian Structural Global VARX model. This setup accommodates economic interpretation of the shocks and accounts for crosssectional spillovers among countries, as well as endogeneity of the climate variables with respect to the economy. Results show a high degree of heterogeneity, with some economies positively and some others negatively affected by climate shocks. In contrast with a consistent strand of the literature, according to which hot and poor countries bear the heaviest burden, we show that climate shocks may have severe effects for the economic growth of rich and cold countries as well. Furthermore, accounting for trade interdependence across countries, we document that, in response to unexpected temperature and precipitation shocks, some economies benefit from interconnections, while some others are damaged, depending on some key structural characteristics as the import-export mix, the relevant trade partners network and the level of economic development. Keywords: Climate econometrics, Bayesian Structural VARs, Identification theory, Global VARs Classification-JEL: C11, C32, O44, Q51, Q54 Creation-Date: 2022-12